Thursday, March 26, 2020

Massachusetts and Ohio Follow New Jersey Attempt to Re-Write Existing Policies to Cover COVID-19 BI Losses

Lawmakers in Massachusetts and Ohio introduced bills this week to rewrite existing insurance policies to cover businesses’ economic losses arising from Covid-19 work stoppages. The proposed language in both measures mirrors a New Jersey bill that was introduced last week but tabled after insurance company representatives raised objections to its legality and constitutionality.

Wednesday, March 25, 2020

States are Limiting Insurers' Ability to Cancel Policies During Pandemic

Following other states, like Georgia, that have recently issued orders that prevent insurers from canceling insurance policies during the ongoing pandemic, Delaware has issued an order that insurers cannot cancel policies during the pendency of the declared state of emergency. Pennsylvania has not barred insurers from canceling policies, but the Insurance Commissioner issued a notice urging insurers to be flexible with payment options for those impacted by the pandemic, but did not prevent cancellations. 

Insurers should closely monitor this situation in every state to make sure that they are abiding by these ever-evolving orders from the states regarding cancellation of policies.

Posted by Jonathan MacBride

Tuesday, March 24, 2020

TDI Extends Claims-Handling Prompt Payment Deadlines In Response To COVID-19

Amid the chaos surrounding the COVID-19 outbreak, the Texas Department of Insurance has issued a Commissioner’s Bulletin extending certain claim-handling prompt payment deadlines for property carriers handling claims in Texas. The Texas Prompt Payment of Claims Act allows for a 15-day extension of claim-handling deadlines for property carriers in the event of a major national disaster, as defined by the Texas Commissioner of Insurance. In the wake of the Commissioner’s determination that the COVID-19 pandemic is a national disaster, Commissioner’s Bulletin # B-0007-20 establishes extended deadlines for claim-handling procedures for property carriers. 

Wednesday, March 18, 2020

State Bill for Coronavirus BI Coverage Recalls Prior Sandy Efforts

The coronavirus (COVID-19) public health emergency will certainly produce significant financial losses across the economy as businesses shut their doors for prolonged periods to avoid infections and exposures. In response, some state legislatures and regulators have begun exploring options to reduce the financial losses to businesses by attempting to allocate certain uncovered business interruption losses to property insurance carriers.

Thursday, February 13, 2020

Revisiting the Risks Posed by Wildfires

Early property insurance policies, first introduced in seventeenth century England, insured against only a single peril: fire. That made sense at the time—most structures were wooden, making fire the most common risk of loss. Yet, in modern times with ever-changing and expanding risk profiles, fire is no longer the singular menace to property it once was. 

Wednesday, November 13, 2019

Climate Exodus: Movement of the People

I’ve got love and assurance, I’ve got new [property] insurance
And I’ve got strength and endurance, so I count my blessings.
-Damian “Jr. Gong” Marley, Count Your Blessings

In 1955, the island community of Isle de Jean Charles, some 80 miles south of New Orleans, covered 22,000 acres. Since then, rising water levels and subsiding land have shrunk the island every year. Inch by inch and acre by acre, the surrounding marshes have claimed most of the island’s grassland and forests, so that today only about 450 acres remain. 

Continue reading.

Wednesday, October 9, 2019

New Space Offers New Solutions for Insurers Looking to Better Assess Exposure

One of the biggest issues facing CAT insurers is assessing risk in an uncertain future. As catastrophic storms increase in number and intensity, CAT insurers must prepare accordingly. Specifically, the increasing number and intensity of hurricanes in the Atlantic Ocean and Gulf of Mexico require insurers to find innovative ways to assess risk and address underwriting challenges. Over the past thirty years, insurers have been forced to adapt policies to fit the changing world. This has included the development of new or different exclusions and deductibles.