Category(s): Federal - 09/01/2016

In recent years, life insurers have expressed concern that the current formulaic (or rule-based) methodology for calculating product reserves does not take into account the increasingly complex, nonstatic nature of current life insurance products. In response to these concerns, the National Association of Insurance Commissioners conducted an extensive analysis of amended Standard Valuation Laws passed by 45 states, representing nearly 80 percent of the U.S. life insurance market. The end result? On June 10, 2016, the NAIC announced it adopted the recommendation of the Principle-Based Reserving Implementation Task Force to switch to PBR starting Jan. 1, 2017. There are still a number of outstanding issues that will need to be addressed as this new methodology moves forward. In the end, PBR may strike the balance that industry and regulators are striving for in this climate.

Frederick J. Pomerantz, Esq. - INSURANCE LEGAL & REGULATORY CONSULTING, PLLC, (516) 297-3101 , PomerantzF35@gmail.com
Aaron J Aisen, Esq. - Aisen Law, PLLC, (585) 478-7228 , Aaron.aisen@gmail.com

Category(s): Florida - 09/01/2016

The Florida Hurricane Catastrophe Fund (“FHCF”) recently issued a Bulletin on Hurricane Hermine Reporting Requirements. The Bulletin advised that the State Board Administration (“SBA”) is not requiring companies participating in the FHCF to submit their interim loss report at this time unless they are notified directly. Additionally, the FHCF advised that they will issue reimbursements based on loss information reported by participants on the Proof of Loss Report, but the FHCF is also not requiring participants to file a Proof of Loss Report at this time. For reporting in December 2016, companies must complete a mandatory Proof of Loss Report for Hurricane Hermine through the FHCF’s Online Claims System, irrespective of the amount of FHCF covered losses experienced.

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

Category(s): Florida - 09/01/2016

The Fourth District Court of Appeal in Florida recently held that the $2,500 limit for non-emergency medical conditions for no-fault personal injury protection (PIP) benefits applies when a medical provider does not make an affirmative decision that there is an emergency medical condition. The decision, resulting from an appeal in Medical Center of the Palm Beaches v. USAA Casualty Insurance Company, was issued on August 31, 2016. The Court said that benefits above $2,500 and up to the maximum of $10,000 are reserved only for situations where a medical provider determines an emergency medical condition exists. This decision, however, will not be final until time expires for a filed motion for rehearing.

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

Category(s): Georgia - 09/01/2016

In Bulletin 16-EX-1, published on August 4, Georgia Insurance Commissioner Ralph T. Hudgens announced that the Georgia Standard Valuation Law will become operative January 1, 2017. The Georgia Standard Valuation Law, found at O.C.G.A. §33-10-13, establishes a principle-based valuation methodology that is applicable, subject to specified exceptions, to life, health, and annuity business written after the "operative date" of the uniform valuation manual adopted by the MNAIC. Forty-five (45) states, including Georgia, have advised the NAIC that they have enacted laws substantially similar to the model standard valuation law, triggering the "operative date" as it is defined in the standard valuation law.

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

Category(s): Tennessee - 09/01/2016

The Tennessee Department of Commerce and Insurance has issued a new Bulletin 16-04 which provides guidance on premium tax payments for surplus lines policies issued on and after October 1, 2016. Effective October 1, all new and renewable single state and multistate surplus lines policies in which Tennessee is the “home state” under the Nonadmitted and Reinsurance Reform Act will be filed as single-state policies, with 100% of the premium being reported to and taxed by Tennessee through the Surplus Lines Information Portal (“SLIP”), along with the SLIP transaction fee (which fee may be passed through to the insured).

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