The Importance of Monitoring Regulatory Developments

By Alexandra Smith, JD

Keeping up to date on what’s happening in an ever-changing world is a chore. This is especially true when it comes to keeping current with the daily influx of new or revised insurance laws, regulations and bulletins/DOI communications.

However challenging it may seem, monitoring regulatory developments can help prevent significant adverse consequences from non-compliance.

Not knowing is not a defense.

An example of the importance of this type of monitoring can be seen through the passage of Delaware Senate Bill No. 75. The law amends §2914 of the Delaware Code relating to payment of life insurance claims by adding requirements for new policy language providing for stricter requirements about what constitutes ‘proof of death’ and, importantly, adds a completely new subsection (b) mandating policy provisions “for the payment of interest on the death benefit under the policy” that appears in accordance with requirements provided by the law.

Through correspondence with an examiner at the Delaware Department of Insurance about the revised law, it appears that they plan to apply this law to all policies, not just new submissions. Previously approved policy forms will have to be amended and submitted for approval to comply by April of 2020 – which is only five months away! The Compact may offer some relief, but there are still open questions there.

We are continuing to stay on top of this and we are including updates on this and other regulatory developments for our clients who use our monitoring services. This is just one example of how we can help you stay on top of regulatory developments. While updates can be pushed to your computer, without analysis or follow up they may be of little value. Contact us to help you stay up-to-date!