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Unformatted text preview: ages that comprise
the PPACA will have a resounding effect on the
health insurance industry. As the federal government generates the regulations, tax code, and user
guidance, the industry prepares for its ultimate
implementation. On the property and casualty (P&C) side of the
insurance industry, the predicted market change
did not occur. With investment income reduced
and significant catastrophic events occurring
in late 2010 and early 2011, normally accepted
wisdom had predicted a slight hardening or at least
a leveling of P&C pricing.
The residential construction sector, which has been
hit particularly hard by the economic downturn,
has experienced a severe hardening of the insurance market with access to coverage almost always
coming from excess and surplus (E&S) markets.
House Bill 1394, enacted in July 2010, changes the definition of construction defect to that of an
accidental occurrence and includes language that
provides a seven-year “look back” for any claims
liability. This has caused insurers to assess...
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- Spring '13
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