Category(s): Alabama - 01/25/2021

The Alabama Department of Insurance (ALDOI) released results of a survey taken to understand the private flood insurance market in the state. The ALDOI commissioned Milliman, Inc. (Milliman), a premier global consulting and actuarial firm, to survey flood insurance industry stakeholders and understand their concerns and perspectives around writing private flood insurance in Alabama, and ways to overcome regulatory, technical, and consumer-focused challenges.

The survey results have prompted the ALDOI to take action to encourage the private flood market. This includes supporting draft legislation that exempts flood insurance from Alabama’s rating laws, allowing insurers to avoid regulations that may be appropriate for other residential property yet onerous for the unique peril of flood.

“The Milliman survey will go a long way toward helping us identify ways to facilitate a viable private flood market in Alabama that offers coverage at an affordable price and protects Alabamians from expensive flood losses,” explained Insurance Commissioner Jim Ridling. “We want to create an opportunity to encourage insurers to write affordable flood policies that protect our citizens, facilitating a healthy, competitive market for insurance companies.”

As noted in Milliman’s report, Alabama consumers currently have limited choice to purchase flood insurance, especially in the admitted market. In Alabama, as in most other states, the private flood insurance market is relatively undeveloped and does not bridge much of the flood protection gap.

Commissioner Ridling said, “Creating a private flood market will increase options for Alabama homeowners to have a flood policy at a competitive rate. Adding flood coverage will close the gap of insurability and better protect Alabamians from losses.”

Milliman principal Nancy Watkins, a co-author of the report, says, “Through this survey, the ALDOI has demonstrated great leadership in their efforts to reduce the roadblocks to private flood insurance through improvements in regulation, communication and education.”  Download a copy of the survey report by clicking here.

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

Category(s): Florida - 01/25/2021

The Florida Hurricane Catastrophe Fund (FHCF) held a rule development workshop on October 27, 2020 to discuss proposed amendments to Rule 19-8.029, F.A.C., Insurer Reporting Requirements and Responsibilities. Specifically, the amendments address insurer exposure and loss reporting requirements for the 2021-2022 contract year and insurer responsibilities. On December 15, 2020, the Governor and Cabinet approved a request for approval of a Notice of Proposed Rule and to file this rule for adoption, if no member of the public timely requests a rule hearing, or if a hearing is requested and no notice of change is needed. The Notice of Proposed Rule was published on December 16, 2020, and comments are being accepted until January 6, 2021. If timely requested, a rule hearing will be held on January 7, 2021. Further details of Rule 19-8.029 can be found here.

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

Category(s): Florida - 01/25/2021

In December, the Florida Division of Workers’ Compensation (DWC) released an updated data summary report outlining the effects of COVID-19 on Florida’s workers’ compensation system. The DWC intends to continually update this report as new data is reported and analyzed. The 2020 report, as of November 30, 2020, can be found here.

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

Category(s): Florida - 01/25/2021

On November 30, 2020, the Florida Department of Financial Services Division of Workers’ Compensation (DWC) issued an Informational Bulletin establishing the maximum workers’ compensation rate, effective January 1, 2021.  Specifically, the maximum weekly compensation rate for work-related injuries and illnesses, occurring on or after January 1, 2021, shall be $1,011.

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

Category(s): Florida - 01/25/2021

In late October, the OIR issued data calls to collect additional claims and other relevant information from insurers related to a natural disaster causing catastrophic damage in the state of Florida.  Specifically, data call notices were issued for Hurricane Sally, Hurricane Michael, and Hurricane Irma.  The OIR previously provided a notice to insurers to file a Catastrophe Reporting Form (CRF) through the Insurance Regulation Filing System (IRFS) for these hurricanes.  Information regarding catastrophe claims reporting can be found here.

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

Category(s): Georgia - 01/25/2021

On November 1, 2020, the Centers for Medicare & Medicaid Services and the Department of Treasury approved Georgia’s request to implement a second Section 1332 State Relief and Empowerment and Waiver for the individual health insurance market.  Under this waiver, Georgia will create a reinsurance program and substitute a new online platform in lieu of the healthcare.gov enrollment system.  The new reinsurance facility will commence in 2022, and the new state online health insurance enrollment portal will debut in 2023.

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

Category(s): Montana - 01/25/2021

On November 2nd, 2020, the Commissioner of Securities & Insurance (CSI) rescinded an advisory memorandum restricting use of defense within limits polices. Click here to read.

Bruce M. Spencer, Esq. - Law Offices of Bruce M. Spencer PLLC, (406) 459-2122 , bruce@brucespencerlaw.com

Category(s): New York - 01/26/2021

On December 9, 2020, the Executive Committee of the National Association of Insurance Commissioners (NAIC) unanimously adopted amendments to the NAIC Unfair Trade Practices Act (#880) (UTPA) that would allow brokers/agents and insurers to offer “rebates” to insurance consumers and would allow insuretech to bring new and innovative technologies to policyholders much faster than under the previous version of the UTPA. 

The amendments come after two-years of review by the NAIC Innovation and Technology Task Force and, among other things, would allow an insurer or producer to “offer or give non-cash gifts, items, or services, including meals to or charitable donations on behalf of a customer, in connection with the marketing, sale, purchase, or retention of contracts of insurance.”  Moreover, the amendment codifies certain value added services that can be provided by carriers without having to go through the often slow regulatory approval process.  

The amendments permit agents/brokers and/or insurers to conduct raffles and drawing as long as there is no financial cost imposed on consumers to participate in the raffle or drawing and the drawing or raffle does not obligate a participant to purchase insurance from the agent/broker or insurer.  The amendments also codify what value added services or products an insurer or agent/broker can offer an insured at no or reduced costs, and include products or services that are primarily designed to satisfy one of the following:

(I) Provide loss mitigation or loss control; 
(II) Reduce claim costs or claim settlement costs; 
(III) Provide education about liability risks or risk of loss to persons or property;
(IV) Monitor or assess risk, identify sources of risk, or develop strategies for eliminating or reducing risk;
(V) Enhance health; 
(VI) Enhance financial wellness through items such as education or financial planning services; 
(VII) Provide post-loss services; 
(VIII) Incent behavioral changes to improve the health or reduce the risk of death or disability of a customer (defined for purposes of this subsection as policyholder, potential policyholder, certificate holder, potential certificate holder, insured, potential insured or applicant); or 
(IX) Assist in the administration of the employee or retiree benefit insurance coverage. 

The adoption of these amendments to the UTPA could have a significant impact on the insurance industry, however, the impact will depend largely on how and when the individual states adopt the amendments, and how consistently the laws are adopted and interpreted by regulators.

JillAllison Opell, Esq. - Foley & Lardner LLP, (212) 338-3520 , jaopell@foley.com
Nicholas R. Paquette, Esq. - FOLEY & LARDNER LLP, (850) 513-3365 , npaquette@foley.com
Kevin G. Fitzgerald, Esq. - FOLEY & LARDNER LLP, (414) 297-5841 , kfitzgerald@foley.com

Category(s): Oklahoma - 01/25/2021

The Oklahoma Insurance Department received a renewal of its 5-year accreditation from the National Association of Insurance Commissioners (NAIC) at the virtual NAIC meeting on December 3, 2020.

Angela Ables, Esq. - KERR, IRVINE, RHODES & ABLES, P.C., (405) 272-9221 , aables@kiralaw.com

Category(s): Tennessee - 01/25/2021

Bill Huddleston has been promoted to the position of Assistant Commissioner for Insurance at the Tennessee Department of Commerce and Insurance (TDCI).  An experienced regulator and CPA, Huddleston most recently served as Director of Insurance of TDCI’s Insurance Division and succeeds Rachel Jrade-Rice, who left TDCI in December for a private sector role at a fintech insurance company.

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