Category(s): - 10/01/2013

On 2 October 2013 the European Commission published legislative proposals to extend the date by which the Solvency II Directive is required to be transposed into national law to 31 January 2015 and its date of application to firms (as well as the repeal date of the existing insurance and reinsurance directives which the Solvency II Directive replaces) to 1 January 2016.  The legislative proposals are due to be considered by the European Parliament during its plenary session from 18 to 21 November 2013 and it is expected that these proposals will (finally) be adopted.

Richard Spiller, Esq. - HOLMAN FENWICK WILLAN LLP

Category(s): Federal - 10/01/2013

The Federal Advisory Committee on Insurance met on September 18. The committee’s charter was renewed. The bulk of the meeting focused on Terrorism Risk Insurance Act (TRIA), which is set to expire on December 31, 2014 without any further Congressional action. Brief reports on FIO’s involvement with international insurance initiatives were also given.

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

Category(s): Florida - 10/01/2013

On October 23, 2013, Florida's First District Court of Appeal issued an opinion reversing a Leon County trial court's order temporarily enjoining the Florida Office of Insurance Regulation from enforcing 2012 amendments to the Florida No-Fault Law.  Among other changes, HB 119 eliminated reimbursement for massage therapy and acupuncture, limited PIP benefits to $2,500 for non-emergency services, and required insureds to seek treatment within 14 days for emergency services, for which up to $10,000 in coverage remains available.  To view a copy of the opinion, click here.  To view the order, click here.

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

Category(s): Florida - 10/01/2013

The Florida Auditor General published the results of its operational audit of the Florida Office of Insurance Regulation (“OIR”) on August 30, 2013.  Among other conclusions, the audit found that OIR policies and procedures should be enhanced to require that the reasoning and judgments supporting property and casualty rate filing decisions be sufficiently documented.  To access the complete audit, click here.

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

Category(s): Florida - 10/01/2013

On September 3, 2013, a Florida U.S. District Court granted an insurance carrier's motion for summary judgment on the interpretation of the term "structural damage" as contained within an insurance policy with a date of loss and policy inception pre-dating the enactment of amendments to section 627.706, Florida Statutes that went into effect on May 17, 2011.  To view a copy of the Order, click here.

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

Category(s): Florida - 10/01/2013

Florida Governor Rick Scott signed various insurance-related bills into law in June 2013, including:

CS/HB 157 authorizes insurers to deliver insurance policies to policyholders by electronic transmission.
CS/HB 223 allows property and casualty insurance policies and endorsements to be posted on an insurer's Web site in lieu of mailing or delivery to an insured if the insurer complies with specific conditions. 
CS/HB 341 returns Florida's uninsured motorist coverage laws to their former status prior to a recent judicial decision by Florida's First District Court of Appeal. 
CS/CS/HB 383 enacts the Interstate Insurance Product Regulation Commission in Florida for the approval of life, annuity, disability income and long-term care products.
CS/CS/HB 553 amends various provisions relating to the administration of Florida's workers' compensation system.
CS/SB 662 changes provisions related to the amount of service fees that may be charged for repackaged drugs through Florida's workers' compensation laws.
CS/CS/SB 810 authorizes a wrap-up insurance policy for a nonpublic construction project to have a workers' compensation deductible of $100,000 or more if certain conditions are met.
CS/HB 1191 allows a captive insurance company to write workers' compensation and employer's liability insurance.
CS/CS/SB 166 incorporates the 2010 National Association of Insurance Commissioners model regulation on annuity protections, expanding the scope of its consumer protections to generally include all purchasers of annuity products.
CS/SB 648 deletes the requirement that health insurers and health maintenance organizations submit marketing communications for small employer health plans to the Florida Office of Insurance Regulation for review.

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

Category(s): Florida - 10/01/2013

Responding to a question certified by the Eleventh Circuit Court of Appeal in the 2012 case of Nunez v. Geico, the Florida Supreme Court ruled on June 27, 2013 that insurers cannot require an insured to attend an examination under oath as a condition precedent to the recovery of Personal Injury Protection insurance benefits in cases arising prior to January 1, 2013.  To view the ruling, click here.

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

Category(s): Florida - 10/01/2013

A working group convened by Florida's Insurance Consumer Advocate has developed a report and related legislative recommendations on various aspects of the insurance claims process, including a policyholder claims bill of rights.  After a series of meetings and telephone conferences, the group released proposals addressing topics such as examinations under oath, insurers' right to require repairs to damaged property, and post-loss assignments of claims.

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

Category(s): Georgia - 10/01/2013

The Georgia Insurance Insolvency Pool (GIIP) was created by the Georgia Legislature to pay the covered claims of insolvent insurance companies for the protection and benefit of the insurance companies’ insureds.  The Southeast United States Insurance Company (SEUS) became a member of GIIP in June 2006 after SEUS converted from being a captive insurer to a standard insurer.  SEUS’s insureds whose claims predated June 2006 were not covered by GIIP and consequently faced exposure when SEUS was liquidated in October 2009.  In 2007, the Georgia Legislature enacted O.C.G.A. §33-36-20, effective in 2010, for the purpose of expanding GIIP’s “covered claims” to include insureds who obtained insurance from a captive insurer that later became insolvent, thereby retroactively covering the previously excluded claims of SEUS’s insureds.  GIIP filed a declaratory judgment action against two insureds that purchased workers’ compensation insurance from SEUS, seeking a declaration that the 2010 amendment was unconstitutional because the extension of coverage would decrease GIIP’s reserves and increase the assessments levied on its member insurance companies.  The defendants filed a motion to dismiss, asserting that GIIP lacked standing to bring the lawsuit.  The trial court granted defendants’ motion to dismiss, and the Court of Appeals affirmed.  The Georgia Supreme Court later held that the Georgia Legislature gave GIIP the power to sue and be sued only for the purpose of enabling GIIP to bring and defend legal actions pertaining to GIIP’s statutory functions and duties.  GIIP was not given the power to challenge its own enabling legislation or subsequent amendments to it.  In finding that GIIP did not have standing to bring a challenge against the 2010 amendment, the Court found that GIIP was not “given the power to question the wisdom of statutes designed to accomplish [the GIIP’s] remedial purpose.

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

Category(s): Georgia - 10/01/2013

On July 8, 2013, the Department issued Directive 13-EX-3 which requires, beginning on January 1, 2014, admitted insurers to file all quarterly and annual premium tax returns electronically.  Insurers may make the filings either by (1) utilizing the PREMIUM pro tax application available through TriTech Software or (2) logging on to the Department’s website and accessing the PREMIUM pro application (for Georgia premium taxes only).  No paper returns will be accepted on or after January 1, 2014.  The Department is currently developing an electronic payment system for remittance of the premium taxes.

Tony Roehl, Esq. - BAKER HOSTETLER LLP, (404) 256-8419 , troehl@bakerlaw.com