PIA Meeting with Commissioner Donelon Leads to
Temporary Suspension of 12-Month Filing Rule
On December 17, 2020, the Louisiana Department of Insurance (DOI) emailed members
of the insurance industry about its decision to temporarily suspend the 12-month
filing rule for rate requests due to the unprecedented 2020 hurricane season and
the cost of reinsurance. The DOI specifies separate rate filing procedures for
property insurance and all other requests. The DOI plans to reinstate the 12-month
filing rule on July 1, 2021. To see more details click
Mark Your Calendars Now for YIPs Winter
on February 4-5, 2021 in Baton Rouge
The Young Insurance Professionals of Louisiana will pay it forward
during their Annual Winter Conference, Thursday, February 4 – Friday,
February 5, 2021 at The Hilton Baton Rouge Capitol Center.
At this year's conference, YIPs Gives Back, we will share our passions, and
discuss how we can best utilize our talents to empower our neighbors and
communities in tangible ways. Our events are streamlined to best maximize
your time out of the office. Our two day conference will conclude on Friday
afternoon. Be sure to check out the agenda for event information.
To see more details on this year's conference and/or register, click
NAIC Adopts Changes to Rebating Model
The National Association of Insurance Commissioners' (NAIC) Executive
Committee has adopted language that would allow for some types of "rebates"
to be offered to consumers, unanimously approving amendments to Section 4(H)
("Rebating") of the
NAIC Unfair Trade Practices Act
(Model #880). The revised
language will permit insurers or producers to "[o]ffer or give non-cash gifts,
items, or services, including meals to or charitable donations on behalf of a
customer, in connection with the marketing, sale, purchase, or retention of
contracts of insurance…." The amendment leaves open the possibility of a cap
on gift amounts to be determined by the state commissioner. The NAIC's Innovation
and Technology Task Force has been working on the rebating issue since 2018.
PIA served on the drafting group and recommended edits throughout the process.
Many of those suggestions were taken, but not all of them; still, we are
comfortable with the new version. The newly revised Unfair Trade Practices
Act (UTPA) still limits rebating, just not as dramatically as it did before.
The UTPA is just a model; individual states are free to choose how much, if
any, of the new language to integrate into their existing law.
States have a patchwork of different rebating rules and laws
some of which emanate from the UTPA. States' current regulatory and statutory
structure governing rebating will inevitably influence the degree to
which—and the way—they adopt these changes.
Another Active Hurricane Season?
Dr. Philip Klotzbach, meteorologist at Colorado State University (CSU)
specializing in Atlantic basin seasonal hurricane forecasts, isn't letting
the fact that the 2020 hurricane season ended just days ago deter him from
Colorado State University's
first outlook on the 2021 hurricane season
we might be in for another active year. The early outlook, led by Klotzbach,
was released on December 10 and says there is about a six in ten chance of
another active hurricane season ahead.
While it is way too early to forecast the number of tropical storms and
hurricanes, climatologists are able to look at some of the drivers that may
aid or hinder hurricane activity next summer and fall. Two such drivers that
Dr. Klotzbach says are key
to figuring out how busy
next season will be are both related to water — the status of El
Niño Southern Oscillation (or ENSO) and how water temperatures in the
northern Atlantic change in the next year.
The first quantitative forecast for 2021
will be issued by CSU on
Thursday, April 8.
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