Industry Issues | Surplus Lines Reform

Federal Updates & Legislation

Cannabis and Banking Hearing Held by Senate Banking Committee - SUMMARY
“Challenges for Cannabis and Banking: Outside Perspectives” focused on the cannabis industry's lack of access to financial institutions and the risks faced by businesses that interact with the cannabis industry.

Federal Insurance Office Release 2019 TRIA Small Insurer Report
Mandatory study of small insurers participating in the Terrorism Risk Insurance Program identifies competitive challenges in the terrorism  risk insurance marketplace.

Congressional Letter to President Seeks Board Nominations for NARAB Board
Members from both chambers of Congress collectively submitted a letter to President Trump asking for board nominations for the NARAB Board.

Treasury seeks to study the challenges faced by small insurers in the terrorism insurance market.

FDA Updates Guidance for Cannabis Products, New Warning Letters, and Announcement of Public Hearing
Press release reinforces FDA position that it is unlawful to introduce food with added CBD or THC into interstate commerce, or to market CBD and THC dietary supplements.

NAIC Exposes Private Flood MCAS Blank for Comment
Private flood insurance line of business to be added to the NAIC Market Conduct Annual Statement, initial collection of data would begin in 2021 for 2020 data.

House Financial Services Committee Passes Marijuana Safe Harbor Bill, Including for Insurers
H.R. 1595 to include an amendment expanding to insurers a safe harbor to provide financial services directly to cannabis-related legal businesses in states that have legalized marijuana in some form.

US Treasury Opens Reporting Portal for Terrorism Data Calls
The portal for the 2019 federal terrorism data call will open on April 1. Treasury will conduct instructional webinars on responding to the data call in early April.

2019 State Terrorism Data Call Exposed for Comment
Proposed new property supplement is scaled back in scope from the 2018 Property Supplement. Comments are due to the states via the NAIC on March 14, 2019.

Marijuana Banking Safe Harbor Discussed By House Financial Services Committee
APCIA working with legislation sponsors to provide for a similar safe harbor for insurers.

Federal Agencies Release Final Rule on Private Flood Insurance
The five federal agencies that oversee lenders have jointly released the final rule implementing Section 100239 of BW-12 related to lender acceptance of private flood insurance.

Congress Passes Farm Bill, Includes Re-Classification of Hemp as Legal Agricultural Commodity
Passage of conference report of the Agriculture Improvement Act of 2018 (H.R. 2), the Farm Bill, removes hemp from the federal list of controlled substances and permits hemp farmers to apply for crop insurance.

FDA issues statement on signing of the Agriculture Improvement Act and the agency's regulation of products containing cannabis and cannabis-derived compounds
See also FDA and Marijuana: Questions and Answers.

PCI Signs Joint Letter to Banking Regulators on Private Flood
PCI signed a joint trade association letter to the banking regulatory agencies to urge action to address uncertainties stemming from banking rules related to the "Private Flood Insurance."

New Federal Discussion Draft of AV Start Act Released
A Senate staff discussion draft of the AV Start Act (S 1885) makes several changes including provisions from the SELF DRIVE Act (HR 3888) that passed the House by voice vote last year. A legislative summary is provided along with comment on specific insurance-related matters of interest.

U.S. Treasury issues Request for Comment on 2019 Federal Terrorism Data Call
The Treasury Department published a Request for Comments on its proposed terrorism data call for 2019. The data call is identical in most respects to the 2018 data call. 

NY DFS issues Request for Comment on 2019 State Terrorism Data Call
On behalf of all states, the NY DFS has issued a Request for Comment on the 2019 state terrorism data call. The proposed state data call is identical in most respects to the federal terrorism data call. The proposed state data call makes no mention of the state Property Supplement that the states collected last year, raising the possibility that the states may not require completion of the Supplement in 2019.

NAIC Market Conduct Annual Statement (MCAS) on Private Flood
NAIC proposes “interrogatories” for more information about premiums written under statutory line of business private flood 2.5, particularly from surplus lines insurers.

Federal Insurance Office of the Treasury publishes its 2018 "Report on the Overall Effectiveness of the Terrorism Risk Insurance Program."

Federal Bipartisan Bill Introduced to Remove Threat of Federal Intervention and Prosecution in States with Legalized Marijuana
The Strengthening the Tenth Amendment Through Entrusting States (STATES) Act of 2018 would affirm that compliant marijuana transactions are not considered trafficking and would remove industrial hemp from the list of substances prohibited under the Controlled Substances Act of 1971. (See Sen. Schumer Press Statement)

National Association of Registered Agents and Brokers UPDATE

2018 Federal and State Terrorism Data Calls.

U.S. Treasury to Hold 4 Webinars on 2018 Federal and State Terrorism Data Calls

U.S. Treasury Department releases terrorism data call forms and instructions; reporting portal open to receive registrations from reporting companies

Preliminary and Draft Federal and State Terrorism Data Calls Released

U.S. Attorney General issues memo ending lenient-federal-enforcement policy (Cole Memo) in states that legalize marijuana activities

Rohrabacher-Blumenauer amendment extended - Federal funds cannot be used to prevent states from implementing their own state laws on medical marijuana

FIO and state insurance regulators expose a 2018 consolidated terrorism insurance data call proposal for comment

U.S. House Passes NFIP Reform and Reauthorization Package, including PCI supported Private Flood Language