Category(s): Arizona - 12/01/2012

Yesterday Arizona Governor Jan Brewer notified the US Department of Health and Human Services that the State of Arizona does not intend to operate its own State-based Health Insurance Exchange.  Governor Brewer said that the failure of CMS to timely issue guidance for the states made it impossible for Arizona to make an informed decision.

S. David Childers, Esq.

Category(s): Connecticut - 12/01/2012

In anticipation of the launch of the state’s Health Insurance Exchange in January 2014, the Connecticut Insurance Department (the “Department”) has issued guidance for the filing of individual and small employer group health insurance policy forms.  Bulletin HC-90 affirms that all policy forms are subject to prior approval, provides a list of the essential health benefits for the benchmark plan in 2014 and 2015, and includes a number of detailed requirements to facilitate the Department’s processing of the anticipated high volume of filings.  Policy forms must be numbered in accordance with state requirements, and will be approved in advance of rate filings.  Separate schedules of benefits must be filed for each unique offering after the Center for Consumer Information and Insurance Oversight publishes their calculator for determining the Actuarial Value of the essential health benefits.

Michael T. Griffin, Esq. - ACCEL LAW GROUP P.C., (860) 761-8550 , mgriffin@accelcompliance.com

Category(s): Florida - 12/01/2012

The Florida Hurricane Catastrophe Fund has published its final adopted 2013/2014 Reimbursement Contract, Addenda and Optional Amendment, along with related Rule 19-8.010.  To view these items, click here.

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

Category(s): Florida - 12/01/2012

On December 3, 2012, the Florida Office of Insurance Regulation issued Order No. 130176-12, clarifying certain components of its June 25, 2012 Order establishing an expedited review and self-certification process for all property and casualty personal lines forms, except workers' compensation, and exempting these forms from the requirements of s.627.410, F.S..  To access the Order, which is effective from its date of issue until June 24, 2013, click here. 

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

Category(s): Florida - 12/01/2012

The Florida Office of Insurance Regulation has officially approved a 6.1 percent rate increase for the National Council on Compensation Insurance, it announced on November 5, 2012.  On October 26, the OIR stated its intention to approve the increase pending a resubmission of the filing to correct technical issues.  The increase will be effective January 1, 2013 for workers' compensation insurance rates in Florida.  To access the Order, click here.

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

Category(s): Georgia - 12/01/2012

On November 20, 2012, the Georgia Court of Appeals affirmed the grant of summary judgment in favor of Infinity Safeguard Insurance Company (“Safeguard”) and its argument that the policy of insurance at issue in the case included an exclusion from coverage of the insured from bodily injury coverage provided under the insurance policy.  The case arose from an accident that occurred while the insured was a passenger in her car which her grandson was driving.  The accident was the fault of the grandson and he was not separately insured.  The insured sued the grandson for recovery of her medical costs associated with the accident.  The grandson sued Safeguard alleging that the exclusion of the insured from recovering under the bodily injury coverage was void against public policy because he was covered under the insured’s policy (i.e., permissive driver) and that denial of the bodily injury coverage harmed an innocent party and subjected the grandson to unfair and unanticipated liability.  Applying the general rule in Georgia against voiding a policy’s exclusion of coverage of a permissive driver, the Georgia Court of Appeals concluded that the bodily injury policy exclusion was not void as against public policy and upheld the summary judgment in favor of Safeguard.

Brian T. Casey, Esq. - LOCKE LORD LLP, (404) 870-4638 , bcasey@lockelord.com
Trey Sivley, Esq. - LOCKE LORD LLP, (404) 870-4657 , tsivley@lockelord.com

Category(s): Georgia - 12/01/2012

On November 20, 2012, the Georgia Court of Appeals affirmed the denial of Maxum Indemnity Company’s (“Maxum”) motion for summary judgment in its declaratory action against its insured, Jose A Jiminez, and a claimant, Gill Plumbing Company.  In the declaratory action, Maxum sought a judgment that its commercial general liability (“GCL”) insurance policy did not cover the liability associated with Jiminez’s negligent pipe installation on a construction project that resulted in property damage to a dormitory at Georgia Southern University.  In affirming the denial of the summary judgment sought by Maxum, the Court of Appeals rejected Maxum’s argument that the Jiminez’s negligent installation was not an occurrence under the GCL policy.  The Court of Appeals also rejected Maxum’s argument that the contractual liability exclusion of the GCL policy applied because Jiminez’s liability arose from his own negligence and not from a contractually assumed liability.  Finally, the Court of Appeals rejected Maxum’s argument that the “contractors limitation endorsement” applied to property damage suffered by a non-contractor, in this case the property damage sustained by Georgia Southern University.  The Court of Appeals noted that to hold otherwise would render the coverage afforded under the GCL policy illusory.

Brian T. Casey, Esq. - LOCKE LORD LLP, (404) 870-4638 , bcasey@lockelord.com

Category(s): New Mexico - 12/01/2012

On November 6, 2012, the voters of New Mexico voted to create a new Office of the Superintendent of Insurance.  With the passage of the constitutional amendment, the Insurance Division was removed from the New Mexico Public Regulation Commission and the office of "Superintendent of Insurance" was created as of July 1, 2013.  Under the constitutional amendment, the Superintendent of Insurance is charged with the duty to regulate insurance companies and others engaged in risk assumption in such manner as provided by law.  The Public Regulation Commission has control over the regulation insurance companies and others engaged in risk assumption until July 1, 2013.  Under the constitutional amendment, the Superintendent of Insurance shall be appointed by a newly created insurance nominating committee and shall serve such terms as provided by law.  The term of the first Superintendent of Insurance shall begin on July 1, 2013, and end on December 31, 2015.  During the 2013 legislative session, the New Mexico Legislature and the Governor will consider legislation to determine whether the Office of Superintendent will be a standalone agency or part of the Executive Branch, the composition of the newly created nominating committee, and the terms of office for the Superintendent of Insurance.

Gary Kilpatric, Esq. - MONTGOMERY & ANDREWS, P.A., (505) 982-3873