Category(s): Colorado - 03/29/2019

On February 28th, the Colorado Division of Insurance filed proposed changes to existing Rule 5-2-12 Concerning Automobile Insurance Consumer Protections.  The proposed changes primarily impact: (1) limitations on insurers’ ability to refuse to write, cancel, fail to renew, surcharge, increase premium, or reduce coverages; and (2) the notice to insured of insurers’ intended actions.  A public hearing will be held on April 1, 2019.

Joel A. Glover, Esq. - Faegre Drinker Biddle & Reath LLP, (303) 607-3648 , Joel.Glover@FaegreDrinker.com

Category(s): Georgia - 03/29/2019

On March 11, 2019, the Georgia Supreme Court ended the uncertainty surrounding an insurer’s duty to settle a liability claim made against its insured.  In First Acceptance Insurance Company of Georgia, Inc. v. Hughes, decided March 11, 2019, the Georgia Supreme Court stated that “an insurer’s duty to settle arises when the injured party presents a valid offer to settle within the insured’s policy limits.”   The plaintiff in the underlying matter had presented First Acceptance with a settlement offer that was not time limited and did not put First Acceptance on notice that its failure to settle the offer within any specified period would constitute a rejection of the offer. Essentially, the ruling in the case places the burden squarely on the injured party to make clear to the insurer that the liability claim against the insured can be resolved within the coverage of the policy.  Likewise, the effect of the decision is that the injured party must put its cards on the table in terms of its willingness to settle and not be allowed to reap rewards from keeping the insurance company in the dark as to the ability to settle within an insurance policy’s limits.

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

Category(s): Georgia - 03/29/2019

On February 4, 2019, the Georgia Supreme Court determined that contractors hired by the Georgia Insurance Commissioner, acting as the liquidator of International Indemnity Co., were not entitled to either sovereign or official immunity pursuant to O.C.G.A. §33-37-8.1.  The case arose out of the liquidation of International Indemnity of which the Georgia Insurance Commissioner was appointed the liquidator.  As the liquidator, the Georgia Insurance Commissioner engaged Regulatory Technologies, Inc. to assist in the liquidation.  Sun States Group, Inc., the sole shareholder of International Indemnity, challenged the final order of liquidation alleging that Regulatory Technologies had charged excessive fees to the International Indemnity liquidation estate and that more funds should have been available to the estate.  Regulatory Technologies defended the allegations and asserted that it was protected by both sovereign and official immunity provisions of O.C.G.A. §33-37-8.1, because it was acting on behalf of the liquidator.  The Georgia Supreme Court disagreed and ruled that O.C.G.A §33-37-8.1 did not provide any immunity to a private corporation such as Regulatory Technologies and remanded the case to the trial court to determine whether Regulatory Technologies had engaged in intentional or willful or wanton conduct.

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

Category(s): Louisiana - 03/29/2019

The Department of Veterans Affairs has a program entitled, “Veterans Federal Exam Reimbursement Program”, which became effective November 1, 2018. The Louisiana Department of Insurance has now established eligibility of Louisiana Veterans for reimbursement of the required Louisiana insurance examination fees through this program. A number of different types of licenses qualify for fee reimbursement, including Automobile Adjuster, Bail Bond, Casualty, Commercial Lines Adjuster, Crop Adjuster, Health & Accident, Industrial Fire, Life, Life Health and Accident, Property, Property & Casualty Adjuster, Personal Lines Adjuster, Personal Lines Producer, Property & Casualty, Public Adjuster, Surety, Surplus Lines, Title and Workers’ Compensation Adjuster.
This program enables Louisiana veterans to pursue careers in insurance by having licensing test fees reimbursed.
Veterans have to pay any fees up front at the time they take the license exam, but upon completion of the exam, eligible veterans have one year to apply for reimbursement of the fees through the Department of Veteran’s Affairs. There is no limit to the number of tests an individual may take, or the number of times the same test is taken. Information on the program can be secured by accessing the VA online at www.GIBILL.va.gov or calling 1-888-442-4551. Veterans may also contact the Louisiana Department of Insurance Production Licensing Division at 225-342-0860 or producerlicensing@ldi.la.gov for guidance.

Van R. Mayhall, Jr., Esq. - BREAZEALE, SACHSE & WILSON, L.L.P., (225) 381-8009 , van.mayhall.jr@bswllp.com
Van R. Mayhall, III - Investar Bank, (225) 227-2309 , van.mayhall@investarbank.com
Sunny Mayhall - The LDS Group and The Versant Group, (225) 768-6160 , Sunny.Mayhall@theLDSgroup.com

Category(s): Mississippi - 03/29/2019

GONE WITH THE WIND -- “Take Two”
For the second consecutive year the Mississippi Legislature has dipped into the funds of the 
Mississippi Windstorm Underwriting Association, the residual market mechanism for wind and hail coverage along the Mississippi Gulf Coast.  HB 444 reauthorizes a 3% surplus lines policy fee designed to provide funds for MWUA, but diverts the first $3,500,000 of such fees to the Rural Fire Truck Fund.  This follows a similar $6,000,000 Legislative taking of these funds in 2018.  Additionally, this bill eliminates the statutory recoupment mechanism available for insurers to recover assessments paid to MWUA.  HB 444 is expected to be signed by Governor Bryant and would become effective July 1, 2019.  

Data Security
Mississippi joins the short list of states to have adopted legislation substantially similar to the NAIC Insurance Data Security Model Law.  SB 2831 is expected to be signed by the Governor and would become effective July 1, 2019.

Corporate Governance Annual Disclosure
Mississippi joins the longer list of states to have adopted the NAIC accreditation standard Corporate Governance Annual Disclosure Model Act.  HB 324 has been signed by the Governor and is effective January 1, 2020, with first CGAD due to be filed no later than June 1, 2020.
  
What the HAP
Legal wrangling continues in the civil actions brought by Mississippi Attorney General Jim Hood against a number of insurers arising out of grants awarded by the Homeowners Assistance Program (HAP) in the aftermath of Hurricane Katrina.  The Mississippi Supreme Court held oral argument on interlocutory appeal of procedural issues in two cases and one case remains before the Court on petition for rehearing of denial of interlocutory appeal as to another procedural issue.  The first of these cases were filed in 2015 and allege improper adjusting of claims, specifically the issue of damage caused by wind versus damage caused by water during Hurricane Katrina in 2005.  Thus far, twelve insurers have been sued, four of which have settled with the aggregate amount of settlements appearing to exceed approximately $11,000,000.

Robert B. House, Esq. - JONES WALKER LLP, (601) 949-4830 , rhouse@joneswalker.com

Category(s): Ohio - 03/29/2019

Ohio recently passed the cybersecurity legislation that is modeled after the NAIC Insurance Data Security Model Law.  Senate Bill 273 became effective on March 20, 2019, making Ohio the second state (after South Carolina) to adopt the Model Law.

Daniel A. Cotter, Esq. - Dickinson Wright PLLC, (312) 423-8170 , DCotter@dickinson-wright.com

Category(s): Texas - 03/29/2019

Commissioner Kreidler’s priority for the 2019 legislative session is to protect consumers from charges for out-of-network health care services by passing a comprehensive Surprise Billing law (HB 1065 and SB 5031).  The proposed bill passed out of the house easily but has not yet passed in the senate where a similar bill stalled in 2018 after passing through the house.  In the proposed legislation, an exception to the balance-billing prohibition applies if an enrollee knowingly chooses an out-of-network provider/doctor over in-network at least 72 hours before treatment at an in-network facility. The bill also includes some transparency provisions, e.g. a requirement that providers list the carriers with which they contract online.  There is much less opposition to this legislation by providers and insurers this year than in prior years.

Julie M. Pomerantz, Esq. - MITCHELL, WILLIAMS, SELIG, GATES & WOODYARD, P.L.L.C, (512) 480-5100 , jpomerantz@mwlaw.com

Category(s): Texas - 03/29/2019

The Texas Legislature is considering the proposed House Bill 3306 which will create a new Chapter 831 of the Texas Insurance Code, titled “Corporate Governance Annual Disclosure, and provide for the Texas equivalent of the NAIC Corporate Governance Annual Disclosures Model Act.  This law is intended to provide the Commissioner with a summary of an insurer’s or insurance group’s corporate governance structure, policies and practices to permit the Commissioner to gain and maintain an understanding of the insurer’s corporate governance framework.  This Model Act will become an accreditation requirement on January 1, 2020; the Texas Legislation, if it passes, is intended to take effect on September 1, 2019 and the first required filing would be on or after June 1, 2020.

Julie M. Pomerantz, Esq. - MITCHELL, WILLIAMS, SELIG, GATES & WOODYARD, P.L.L.C, (512) 480-5100 , jpomerantz@mwlaw.com