In this week's news will talk about how California cracks down with sweeping new laws impacting insurance brokers, COVU Completes 4th Acquisition with Ford Insurance Agency, and much more...
Texas opens surplus lines market to new group insurance policies
Texas has opened a new lane for surplus lines carriers, giving them more flexibility to serve consumer groups.
With House Bill 3388, passed in May and taking effect September 1, the state now allows insurers to issue group property & casualty insurance policies to “permitted groups” of ten or more people with a preexisting relationship, such as members of a trade association or affinity group.
These policies, available through both admitted and surplus lines markets, must deliver economies of scale and can't cap claims through shared aggregate limits, a critical protection for certificate holders. The shift could potentially open new revenue channels, reduce administrative hurdles, and increase coverage accessibility across the board.
The law also offers meaningful relief for surplus lines agents. Rather than proving a diligent effort to place coverage for each member individually, agents now only need to do it once per year for the group as a whole. They’re also no longer required to report individual certificates to the Surplus Lines Stamping Office, only the master group policy.
With House Bill 3388, passed in May and taking effect September 1, the state now allows insurers to issue group property & casualty insurance policies to “permitted groups” of ten or more people with a preexisting relationship, such as members of a trade association or affinity group.
These policies, available through both admitted and surplus lines markets, must deliver economies of scale and can't cap claims through shared aggregate limits, a critical protection for certificate holders. The shift could potentially open new revenue channels, reduce administrative hurdles, and increase coverage accessibility across the board.
The law also offers meaningful relief for surplus lines agents. Rather than proving a diligent effort to place coverage for each member individually, agents now only need to do it once per year for the group as a whole. They’re also no longer required to report individual certificates to the Surplus Lines Stamping Office, only the master group policy.
Connecticut mandates arbitration reform in disputed auto claims
Connecticut Gov. Ned Lamont has signed into law a measure that changes how disputed auto insurance claims are resolved through arbitration, with provisions requiring insurers to absorb some of the process-related expenses previously covered by the state.
House Bill 6435, now codified as Act 25-131, establishes a mandatory arbitration process focused solely on the amount in dispute. According to the law’s text, issues involving liability or coverage will not be addressed through this procedure.
Arbitration will be overseen by the state’s Division of Consumer Affairs and will only be available when previous mediation efforts involving the division have failed.
Under the statute, insurers must pay the undisputed portion of the claim upon receiving written notice that the matter has been referred to arbitration. This requirement does not prevent the claimant from continuing to pursue the disputed portion through arbitration.
House Bill 6435, now codified as Act 25-131, establishes a mandatory arbitration process focused solely on the amount in dispute. According to the law’s text, issues involving liability or coverage will not be addressed through this procedure.
Arbitration will be overseen by the state’s Division of Consumer Affairs and will only be available when previous mediation efforts involving the division have failed.
Under the statute, insurers must pay the undisputed portion of the claim upon receiving written notice that the matter has been referred to arbitration. This requirement does not prevent the claimant from continuing to pursue the disputed portion through arbitration.
COVU Completes 4th Acquisition with Ford Insurance Agency
COVU, Inc., the leader in AI-native customer servicing for the insurance industry, today announced the acquisition of Ford Insurance Agency, a 100+ year-old, family-owned business based in Maine. This marks the 4th strategic acquisition—building the foundation for a national platform that gives agencies the ability to scale or exit on their terms.
With this milestone, COVU affirms its mission to empower independent agencies through flexible, AI-native solutions that protect customer relationships, deepen carrier value, and elevate operational performance—without replacing the human touch.
“Now that we have COVU’s support, I think the moon is the limit. The growth potential is huge. If we keep it going the way it’s going, it’ll be a very good company,” said Gary Lonsigner, former owner of Ford Insurance Agency.
“We chose to sell to COVU because they were the only buyer that offered a stock sale while preserving our brand and legacy, which gave us the confidence that our customers—and our agency’s name—would continue on with the same care and reputation we built over generations”
With this milestone, COVU affirms its mission to empower independent agencies through flexible, AI-native solutions that protect customer relationships, deepen carrier value, and elevate operational performance—without replacing the human touch.
“Now that we have COVU’s support, I think the moon is the limit. The growth potential is huge. If we keep it going the way it’s going, it’ll be a very good company,” said Gary Lonsigner, former owner of Ford Insurance Agency.
“We chose to sell to COVU because they were the only buyer that offered a stock sale while preserving our brand and legacy, which gave us the confidence that our customers—and our agency’s name—would continue on with the same care and reputation we built over generations”
California cracks down with sweeping new laws impacting insurance brokers
July 1 wont just mark the start of a new quarter in California—it will mark a major compliance reset for insurance brokers.
A wide-ranging slate of state laws took effect this week, transforming the legal landscape for brokers working across pet insurance, health benefits, digital services, and mental health. For many, the changes are already reshaping conversations with clients—and raising urgent questions about transparency, disclosure, and coverage.
The message from lawmakers is unmistakable: obscurity is out, accountability is in. Whether you’re selling pet, health, property, or legal protection, your clients are about to expect more—and regulators will be watching closely.
Pet insurance rate hikes face new scrutiny
Among the most immediate changes is Senate Bill 1217, which requires pet insurers to specify the exact reasons for premium increases. Whether tied to a pet’s age, breed, or location, these justifications must now be made plain in policy documents.
A wide-ranging slate of state laws took effect this week, transforming the legal landscape for brokers working across pet insurance, health benefits, digital services, and mental health. For many, the changes are already reshaping conversations with clients—and raising urgent questions about transparency, disclosure, and coverage.
The message from lawmakers is unmistakable: obscurity is out, accountability is in. Whether you’re selling pet, health, property, or legal protection, your clients are about to expect more—and regulators will be watching closely.
Pet insurance rate hikes face new scrutiny
Among the most immediate changes is Senate Bill 1217, which requires pet insurers to specify the exact reasons for premium increases. Whether tied to a pet’s age, breed, or location, these justifications must now be made plain in policy documents.
More capacity, new pressures in commercial property insurance
Staying nimble is no longer a nice-to-have in commercial property insurance – it’s a necessity. Farrah Schubmehl, office president and property and marine broker at CRC Group, says brokers must remain alert in a market defined by rapid change. “It's a very quickly shifting market,” she said. “What works today may not hold tomorrow.”
Schubmehl, whose insurance career began in 1999, compares the current environment to the hard market that followed 9/11, when she was learning the ropes at Chubb. But today’s challenges, shaped by the aftermath of a global pandemic, are markedly different. “Looking back from then to now and what we've experienced after the pandemic, it's just a different marketplace,” she said.
Capacity returns, but expectations shift
In contrast to earlier years when capacity was limited, Schubmehl now sees a more open landscape. The idea of “constraints,” she argues, may be outdated. “From a property perspective, I see very few constraints,” she said. Instead, brokers must navigate a market where change is constant and sector-specific trends are diverging. For instance, she notes rate reductions emerging in both chemical manufacturing and habitational markets.
Schubmehl, whose insurance career began in 1999, compares the current environment to the hard market that followed 9/11, when she was learning the ropes at Chubb. But today’s challenges, shaped by the aftermath of a global pandemic, are markedly different. “Looking back from then to now and what we've experienced after the pandemic, it's just a different marketplace,” she said.
Capacity returns, but expectations shift
In contrast to earlier years when capacity was limited, Schubmehl now sees a more open landscape. The idea of “constraints,” she argues, may be outdated. “From a property perspective, I see very few constraints,” she said. Instead, brokers must navigate a market where change is constant and sector-specific trends are diverging. For instance, she notes rate reductions emerging in both chemical manufacturing and habitational markets.
