Here are my notes from this morning’s IAC SOP Sub-committee teleconference on the proposed Commentary. As usual, my comments are in bold, blue, italic font.
IAC SOP Sub 120109 Notes.pdf (246 KB)
Thanks for posting Mike.
So it appears that the commentary has morphed / is morphing from an explanation of the requirements in the SOP to a separate, independent set of requirements to be published as an extension of the SOP. Quite interesting that the committee feels that the “commentary” must be “enforceable”.
The commentary will become a favorite tool for plaintiff attorneys to sue HIs. I wonder how the E&O carriers will react if they figure out exactly how exposed they and their HI insureds will be under the combined SOP / commentary rule morass. It might result in greatly increased rates or their pulling out of the TX market. It would create an interesting situation if HIs can’t get the required insurance to maintain their licensing. I guess there will be fewer TX HIs to compete for business in the future…
Thanks to Cahill for trying to keep the commentary as “commentary” rather than a conflicting, second set of rules.
Thanks Michael - interesting stuff :shock: