2012beof-111206092256-phpapp02

Will have a resounding effect on the health insurance

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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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