Category(s): Federal - 04/01/2012

On March 30, Federal Insurance Office Director Michael McRaith convened the inaugural meeting of his 15-person Insurance Advisory Committee.  The Committee has seven state regulators on it, plus industry, academic and consumer advocates.    The Committee is likely to meet quarterly and to take up big-picture issues where Director McRaith would like outside advice, counsel and input.

Charles T. Richardson, Esq. - FAEGRE BAKER DANIELS LLP, (202) 997-0681 , crichardson@faegrebd.com

Category(s): Florida - 04/01/2012

On March 7, 2012, Judge Ursula Ungaro of the Southern District of Florida denied class certification in a case brought against State Farm Mutual Automobile Insurance Company by a class of providers challenging the application of the Medicare Outpatient Prospective Payment System to fee schedule reimbursements for Personal Injury Protection insurance. The court had previously ruled against State Farm on the merits of the claim, finding that the PIP statute did not allow the use of OPPS to cap reimbursements. However, in deciding not to certify the class, the trial court specifically found that whether or not a payment utilizing OPPS was "reasonable" was an individual inquiry which depended on the circumstances of each claim.

Fred E. Karlinsky, Esq. - GREENBERG TRAURIG, P.A., (954) 768-8278 , karlinskyf@gtlaw.com

Category(s): Florida - 04/01/2012

The Florida Office of Insurance Regulation announced on April 17, 2012, that NIMA, Inc. will contract with the Florida Surplus Lines Service Office to serve as its central clearinghouse provider for the collection and allocation of surplus lines premium tax payments for multi-state surplus lines policies.

Richard J. Fidei, Esq. - GREENBERG TRAURIG LLP, (954) 592-5530

Category(s): Florida - 04/01/2012

Florida Insurance Commissioner Kevin McCarty issued an April 5, 2012 order to Safe Harbor Christian Foundation (Safe Harbor) to cease and desist writing any new donor annuity business in Florida. Safe Harbor was registered as a donor annuity in Florida in 2007, and has home offices in Newark, Ohio. Safe Harbor reported a total of three annuities in force in Florida totaling $100,000. The order was precipitated by action by the U.S. Commodity Futures Trading Commission in the U.S. District Court for the Western District of North Carolina. To view the order, click here.

Fred E. Karlinsky, Esq. - GREENBERG TRAURIG, P.A., (954) 768-8278 , karlinskyf@gtlaw.com

Category(s): Florida - 04/01/2012

Governor Rick Scott's first official act when he became Governor was to issue an Executive Order suspending agency rulemaking.  Agencies under his direct control were obligated to comply and other executive branch agencies were asked to voluntarily comply.  A court ruling determined, however, that the Governor overstepped his authority in the Executive Order because administrative rulemaking is a function delegated to agencies by the legislature.  The Florida Legislature fixed this in the recently concluded legislative session by specifying that the Governor indeed retains control over rulemaking by the agencies he oversees.

Travis L. Miller, Esq. - RADEY LAW FIRM, (850) 425-6654 , tmiller@radeylaw.com

Category(s): New Mexico - 04/01/2012

During the 2012, the New Mexico Legislature approved a resolution which will allow the voters to decide whether to remove the Insurance Division and Superintendent of Insurance from the New Mexico Public Regulation Commission.  House Joint Resolution 17, if approved by the voters, would remove responsibility for regulating insurance companies from the public regulation commission and amend the Constitution of New Mexico to create the office of "superintendent of insurance".  Under the amendment, the Office of the Superintendent of Insurance would regulate insurance companies and others engaged in risk assumption in such manner as provided by law as of July 1, 2013.  The superintendent of insurance would be appointed by an insurance nominating committee and serve for such terms as provided by law.  The insurance nominating committee would be appointed, and the committee would evaluate applications for superintendent of insurance in accordance with qualifications established by statute.  The resolution will be submitted to the voters for their approval or rejection during 2012 general election.

Gary Kilpatric, Esq. - MONTGOMERY & ANDREWS, P.A., (505) 982-3873
J. Brent Moore, Esq. - Moore Law, PC, (505) 870-7496 , jbm@moorelawpc.com

Category(s): New York - 04/01/2012

On March 8, 2012, a panel Of New York's Appellate Division, Third Department let stand New York Insurance Regulation 194, a controversial rule requiring New York insurance producers to disclose to their clients how they are compensated, including compensation from insurers.  Referring to the New York Department of Financial Services, the Court found: "respondent rationally determined that, while incentive-based compensation need not be banned or limited, disclosure of such compensation structures would promote needed transparency and arm consumers with relevant information regarding the role of insurance producers and the compensation that they receive."

Francine L Semaya, Esq. - LEGAL AND REGULATORY CONSULTANT, (732) 241-8090 , flsemaya@gmail.com
William K Broudy, Esq. - NELSON LEVINE de LUCA & HORST, LLC, (212) 233-3254 , wbroudy@nldh.com

Category(s): Tennessee - 04/01/2012

Commissioner of Commerce and Insurance Julie Mix McPeak has issued a Bulletin to P&C Insurers licensed in Tennessee confirming that all certificates of insurance must conform to the terms of the underlying  policy and that any improper modification or fabrication of a certificate will be considered an unfair trade practice.  The Bulletin, issued on March 21, obviated a push for legislation proposed by a producer trade group that would have similarly clarified current law.

T. Stephen C. Taylor, Esq. - BASS, BERRY & SIMS, PLC, (615) 742-7758 , staylor@bassberry.com
Robins H. Ledyard, Esq. - BASS, BERRY & SIMS, PLC, (615) 742-6259

Category(s): Tennessee - 04/01/2012

Effective July 1, insurers will have welcomed flexibility in choosing custodians and clearing corporations under a new law signed by Governor Bill Haslam on April 4.  Based on legislation proposed by the Tennessee Department of Commerce and Insurance, the law (Public Chapter 680) broadens the types of eligible custodians through which an insurer’s securities are deposited to include national banks, state banks, Federal Home Loan Banks, trust companies, and broker/dealers that participate in a clearing corporation.

T. Stephen C. Taylor, Esq. - BASS, BERRY & SIMS, PLC, (615) 742-7758 , staylor@bassberry.com
Robins H. Ledyard, Esq. - BASS, BERRY & SIMS, PLC, (615) 742-6259