Regulatory Updates

House Bill 2274 gives State of Oregon new tools to fight securities fraud  Aug. 10, 2023 Salem – The Oregon Division of Financial Regulation (DFR) continues to fight for consumers and investors with the passage of House Bill 2274, which bolsters the division’s enforcement tools in dealing with securities fraud. Oregon securities law currently employs three core mechanisms to shield investors from potential harm: 1. Mandatory registration: A security must be registered with the Department of Consumer and Business Services (DCBS), which includes DFR, before the offer or sale in Oregon, subject to specified conditions. 2. Licensing requirements: Individuals engaged in selling securities or providing investment advice must be licensed by the state as a broker-dealer, salesperson, investment advisor, or investment advisor representative, unless exemptions or exclusions apply. 3. Prohibition of misleading statements: The law prohibits making false or misleading statements in connection with the sale or purchase of securities in Oregon.  HB 2274, which the Oregon Legislature passed in the 2023 session and Gov. Tina Kotek recently signed into law, has two key provisions to enable DFR to better protect consumers and investors:   Restitution: The bill grants the division authority to order restitution to investors harmed by violations of the securities law. This enhancement enables DFR to better protect investors by ensuring that wrongdoers compensate those adversely affected.   Enhanced civil penalties: The bill authorizes civil penalties for securities law violations, with a maximum penalty of $60,000 for each violation. The higher penalties apply when the victim is considered a vulnerable person, including elderly individuals and those with financial incapability, incapacitation, or specific disabilities. Given the increasing vulnerability of the elderly population to securities fraud, this bill aims to deter violations and provide stronger protection for Oregon's most susceptible investors.  HB 2274 also includes provisions to enhance DFR’s oversight and enforcement authority over the securities industry, including requiring prompt and truthful responses from subjects under investigation for securities violations. “House Bill 2274 will lead to more effective enforcement of the Oregon securities laws and contribute to a safer investment environment for consumers and investors across the state,” said DFR Administrator TK Keen. “This bill is a big win in giving us the tools needed to protect vulnerable people and take on fraud.”

Effective September 15th, 2023 New Hampshire will require all Nonresident adjuster applicants to answer questions by providing the name of their employer.

Pursuant to Hawaii Revised Statutes (“HRS”)§ 431:9-201(b), Insurance Commissioner Gordon I. Ito is issuing this declaration authorizing temporary assistance of nonresident independent adjusters due to fires across the State. The Insurance Commissioner has decided to allow nonresident independent adjusters to operate in the State temporarily to help handle the amount of work due to the fires. The Insurance Commissioner wants to ensure that adjusters and insurance companies can and will timely respond to property owners’ needs.  See attachment for full details.

Effective August 9, 2023 Florida strengthened the MyProfile log-in and account creation process.  See attachment for full details.

On August 8, 2023, Delaware reissued a bulletin regarding false or misleading statements concerning how insurance rates are set in Delaware.  See attachment for full details.

On August 7, 2023, New Hampshire issued a bulletin laying out notice required when a producer is terminated for cause.   See attachment for full details.

Effective September 15, 2023, Mississippi will required the following non uniform questions for renewals. Have you or any business in which you are or were an agent, owner, partner, officer or director of the business entity, or member or manager of a limited liability company, ever had an insurance agency contract or any other business relationship with an insurance company terminated for any alleged misconduct in any U.S jurisdiction?

Effective September 1, 2023, Oklahoma has adopted the Annuity Suitability and Best Interest Standard Model Act.  See attachment for full details.

Effective August 1st, 2023, Georgia will include Pet Insurance in the types of insurance able to be sold by agents holding Life, Accident and Sickness, Property and Casualty, or Personal Lines.  See attachment for full detail. 

Effective July 1, 2023, South Carolina has added a late appointment renewal fee of $250 for residents and nonresidents.