Claims made policies

Mark Gordon Governor TO: FROM: THE ST A TE OF WYOMING Department of Insurance 106 E. 61h Ave. • Cheyenne, Wyoming 82002 BULLETIN NO. 10.1-2024 All Interested Parties '\(_.- Jeffrey P. Rude, Wyoming Insurance Commissioner J DA TE: October 18, 2024 SUBJECT: Claims made policies Jeffrey P. Rude Commissioner Pursuant to W.S. §§ 26-14-106 through 26-14-108, the Department has the authority to regulate rates when a non-competitive market exists in a particular line of business. Previously, the Department had determined that a non-competitive market existed regarding claims made policies, including but not limited to professional/medical malpractice policies. Due to increased insurer participation in professional/medical malpractice and other claims made type policies, the Department has determined that the restrictions imposed as a result of the prior non-competitive market are no longer needed. Accordingly, the following update regarding the requirements associated with claims made policies is necessary. Consistent with the Department's longstanding position, all claims made policies must include the option of purchasing a Supplemental Extended Reporting Period (SERP) for unlimited duration. In addition, the SERP must reinstate the aggregate limits. Referred to as supplemental aggregate limits, the aggregate limits of the claims-made policy under which the SERP is elected are "reset" for any claims that are covered by the SERP. Although the aforementioned requirements remain in place, the Department will no longer place restrictions on the amount of premium that may be charged for the policy as was previously imposed pursuant to W.S. § 26-14-106(g). If there are questions regarding the above, please feel free to contact the Department Staff Attorney at the Department main telephone number (307) 777-7401. Administration (307) 777-7401 • Fax (307) 777-2446 • https://doi.wyo.gov/ • Licensing (307) 777-7319 • Consumer Affairs (307) 777-7402