US: Marine, Aviation and Transportation (MAT) legislation enacted in Oregon and Delaware
In June, the governors of Oregon and Delaware signed legislation clarifying that non-admitted insurers such as Lloyd’s can write MAT insurance in both states.
During the first half of 2015, Lloyd’s received a number of reports from brokers and underwriters about the difficulty of placing MAT business in Oregon and Delaware. In response to these reports, Lloyd’s America investigated the issue and held discussions with the Insurance Departments of both states. Through these discussions, it was concluded that legislation was needed to correct ambiguities in the MAT statutes of both states. These ambiguities were being read to preclude non-admitted insurers like Lloyd’s from writing MAT business.
Working with local lobbyists, Lloyd's America met with key state legislators to stress the importance of non-admitted insurers to the MAT market, and in the spring of 2015 corrective bills were introduced in each state. Lloyd’s America also contacted coverholders for examples of specific Oregon and Delaware MAT risks. The coverage examples provided by coverholders were instrumental to gaining legislators’ support because they evidenced that a number of state-specific industries rely on MAT coverage. In Oregon, the case was made before the Senate Transportation Committee in favour of the much needed capacity provided by non-admitted insurers. As a result of these efforts, the bills passed in both states by overwhelming margins.
The Oregon legislation went into effect on 18 June, and the Delaware legislation went into effect on 24 June. Both states now provide that MAT insurance can be written by non-admitted insurers such as Lloyd’s and is exempt from the surplus lines laws and regulations. For more information on how these MAT exemptions function, please see the Oregon and Delaware Crystal pages.