Pursuant to W.S. $ 3l -9-405, every motor vehicle liability policy is subject to certain statutory provisions which need not be contained in the actual policy language. Specifically, W.S. § 31-9-405(f) states as follows:

(i) The liability of the insurance carrier with the respect to the insurance required by this act shall become absolute whenever injury or damage covered by the motor vehicle liability policy occurs. The policy may not be cancelled or annulled as to the liability by any agreement between the insurance carrier and the insured after the occurrence of the injury or damage. No statement made by the insured or on his behalf and no violation of the policy shall defeat or void the policy[.]

A common policy provision excludes coverage for liability resulting from criminal acts. The assumption is that this policy exclusion is included due to the general public policy of not indemnifying individuals for criminal acts.

The Department is aware of insurers attempting to deny liability coverage as a policy exclusion in circumstances where the insured caused injury or damage to uninvolved third parties while operating a motor vehicle in commission or furtherance of a criminal act. However, the plain language of W.S. § 31-9-405 is clear: the insurer's responsibility regarding liability coverage as to the innocent third party is absolute and may not be denied or modified once liability has been incurred. This position is based on not only the plain language of W.S. § 31-9-405(f), but also upon consideration of the public policy of protecting innocent third parties.

It is understood that the above position may have an initial economic consequence for insurers because they are statutorily required to pay for injuries and damages that may be otherwise contractually excluded in the policy. However, pursuant to W.S. § 31-9-405(h), any motor vehicle liability policy may provide that the insured shall reimburse the insurance carrier for any payment the insurance carrier would not have been obligated to make under the terms of the policy except for the provisions of this act [the Motor Vehicle Safety-Responsibility Act, W.S. § 26-9-101 et seq.]. This language allows the insurance carrier to recover from the insured in the event liability coverage is mandated pursuant to W.S. § 26-9-405(f). The Department's interpretation of the mandatory coverage provisions of W.S. § 26-9-405(f) is that the requirement is satisfied upon payment of the statutory minimum insurance requirements identified in W.S. § 31-9-405(b)(ii).

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.

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. A SERP for unlimited duration means that the coverage is provided for any claim that is made against an insured, provided the claim results from bodily injury or property damage that occurred after the retroactive date (if applicable) and before the end of the policy period. 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" tbr 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 lor 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.

TO: All Wyoming Licensed Property & Casualty Insurance Companies  

DATE:  October 18, 2024

SUBJECT: Anticipated Property & Casualty Data Calls 

Based on multiple recent complaint investigations, the Department has identified instances where underwriting guidelines/rules have not been in compliance with Wyoming law.  After thorough consideration and discussions with industry representatives, the Department will commence a series of data calls related to the property and casualty market in this state.  The information to be provided by insurers will be related to, but not limited to, underwriting rules/guidelines and will be reviewed for compliance with Wyoming law.  Insurers receiving a data call shall submit the requested underwriting documentation in accordance with the procedures and deadlines identified in the data call document.  The data calls will begin in or about December 2024.  

If there are questions regarding the above, please feel free to contact Lela Ladd, Insurance Standards Manager, at lela.ladd@wyo.gov or at the Department main telephone number (307) 777-7401.