Category(s): Alabama - 06/01/2013

On May 8, 2013, Alabama Governor Robert Bentley signed HB192, a corrective measure sponsored by Representative Greg Wren that amends Alabama's Unclaimed Life Insurance Benefits Act.  House Bill 192, which was supported by the domestic life insurance industry, became Act 2013-195.

During the 2012 Legislative Session, Alabama enacted model legislation proposed by the National Conference of Insurance Legislators (NCOIL) that would require life insurers to search the Social Security Death Master File ("DMF") for deceased policyholders.  Like HB192, the 2012 Act was sponsored by Representative Wren, who serves as the President-elect of NCOIL.  The 2012 Act would have required life insurers to compare in-force policies to the DMF beginning June 1, 2014, and to complete their review by January 1, 2017. Thereafter, an insurer was to maintain a program to perform the comparison no less frequently than every three years.  What was potentially problematic was that the 2012 Act applied to all policies, including those already in-force.

Act 2013-195 amends the 2012 law to ensure that the review requirement applies only prospectively, such that insurers are required to search the DMF only with regard to life insurance policies, annuity contracts, and retained asset accounts issued and delivered in Alabama and which are issued or entered into on or after January 1, 2016.   The review and comparison must be completed by January 1, 2019.  Thereafter, insurers must perform this comparison at least every three years.  The 2013 Act goes into effect September 1, 2013.

Stephen W. Still, Esq. - BALCH & BINGHAM LLP, (205) 488-5512 , sstill@balch.com

Category(s): Florida - 06/01/2013

On April 25, 2013, the First District Court of Appeal accepted jurisdiction in the ongoing litigation challenging the constitutionality of Florida's 2012 Personal Injury Protection ("PIP") reform law.

An April 17 order by Judge Terry Lewis of the Second Circuit Court of Leon County had lifted an automatic stay of his March 2013 Temporary Injunction in which he found that sections of the law requiring a finding of emergency medical condition as a prerequisite for payment of PIP benefits or prohibiting payment of benefits for services provided by acupuncturists, chiropractors and massage therapists are unconstitutional.

To view an up-to-date list of documents filed in the ongoing litigation between the Florida Office of Insurance Regulation and these Florida health care providers, click here.

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

Category(s): Florida - 06/01/2013

Florida Insurance Commissioner Kevin McCarty has ordered Universal Property and Casualty Insurance Company ("UPCIC") to pay a $1.26 million administrative fine in relation to issues arising from a recent market conduct examination.  The scope period, which was January 1, 2009, through May 2013, included an examination of UPCIC's practices regarding claims and complaint handling, rate filings, financial transactions, underwriting and other areas. To view the Order, click here.

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

Category(s): Florida - 06/01/2013

While many of the bills aimed at reducing the size of the Citizens Property Insurance Corporation (“Citizens”), ultimately failed in the Florida Legislature, one significant provision that did pass establishes a ‘Clearinghouse’ within Citizens.  Policies seeking new and renewal coverage from Citizens will have to first be submitted through the Clearinghouse to allow private market insurers the opportunity to offer coverage before being placed in Citizens.  The inclusion of surplus lines companies in the Clearinghouse process was originally contemplated, but ultimately removed in the last few days as concerns raised by House Representatives from the southern coastal area of Florida proved too much to overcome as the Session concluded.

Gary Sumner - MANG Law Firm, (850) 222-7710 , gsumner@manglaw.com

Category(s): Georgia - 06/01/2013

Arnold was injured in a motor vehicle accident caused by Neal and offered to settle for the limits of liability under Neal’s automobile policy and a limited liability release with specified conditions (no indemnification language except regarding Medicaid liens and no denial of liability).  The Court found an enforceable contract existed between Neal and Arnold because Neal’s insurer responded to Arnold with correspondence agreeing to settle Arnold’s claim for the policy’s limits, correspondence containing a limited release that adhered to Arnold’s settlement conditions, and delivery to Arnold of a check for the policy’s limits upon which the claims adjuster handwrote “full + final settlement of any and all claims.”  The Court rejected Arnold’s argument that the handwritten language on the check deviated from the conditions of the offer and constituted a counteroffer by Neal.  The Court examined the release language alone and found it clear and unambiguous and that it reflected the parties’ intention, and it was not a counteroffer as argued by Arnold.

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 - 06/01/2013

On May 16, 2013, the Georgia Court of Appeals affirmed the trial court’s grant of partial summary judgment to Wallace Hughes and the denial of the cross-motion for summary judgment by St. Paul Fire and Marine Insurance Company (“St. Paul”) arising from Hughes' action to recover for injuries he sustained while driving a vehicle covered under a St. Paul auto insurance policy.  The primary issue was the application of Georgia’s uninsured motorist law to a policy that was delivered in another state. The Court of Appeals held that Georgia law governed the issue because Georgia was the principal location of risk, St. Paul was licensed as an insurer in Georgia, and the vehicle Hughes was driving was garaged and principally used in Georgia.  The Court of Appeals also noted that there was never a written rejection of uninsured motorist coverage by Hughes, which is a requirement under the uninsured motorist statute.

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 - 06/01/2013

On May 22, 2013, the Georgia Supreme Court affirmed the Court of Appeals’ ruling that Georgia Casualty and Surety Company (“GCSC”) was entitled to summary judgment on its insured's breach of contract claim because the "made whole" doctrine did not require it to demonstrate that the insured had been fully compensated prior to exercising its subrogation rights under the commercial property insurance policy.  The Georgia Supreme Court held that the "made whole" doctrine has not been extended from “personal injury claims and matters involving an insurer’s right to be reimbursed by the insured for paying medical or other benefits for [him or her]” to commercial property claims.  The Georgia Supreme Court observed that it is for the Legislature to determine whether the made whole doctrine should apply as a matter of law to a commercial property insurance policy that grants subrogation rights to an insurer.

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): Tennessee - 06/01/2013

Tennessee Commissioner of Commerce and Insurance Julie Mix McPeak has named Chlora Lindley-Myers as Deputy Commissioner for Insurance, Securities and TennCare.  In her expanded role, Deputy Commissioner Lindley-Myers now oversees all activities of the Insurance, Securities and TennCare Oversight Divisions at the Department of Commerce and Insurance.

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 - 06/01/2013

Larry Knight, the longstanding Assistant Commissioner for Insurance, has left the Tennessee Department of Commerce and Insurance effective June 3 after a distinguished 20 year career.   Deputy Commissioner Chlora Lindley-Myers is handling the Assistant Commissioner duties until a permanent successor is named, which is expected by the end of 2013.

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