Category(s): Florida - 05/24/2021

In early March, the Florida Department of Financial Services Division of Workers’ Compensation (DWC) published a report detailing its 2020 results and accomplishments. The report includes medical, indemnity, and financial results and outlines various regulatory activities. It also includes a points of interest section for its readers, highlighting aspects such as stakeholder training and education, an insurer regulatory report, and COVID-19 summaries. Click here  to view DWC’s 2020 Results & Accomplishments Report.

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

Category(s): Florida - 05/24/2021

On April 27, 2021, Governor Ron DeSantis issued Executive Order 21-94  to extend the state of emergency declared for the entire state due to COVID-19. The Order extends the state of emergency declared in Executive Order 20-52 , as extended by Executive Orders 20-144, 20-166, 20-192, 20-213, 20-276, 20-316, and 21-45, for another 60 days, until June 26, 2021. Additionally, the Governor issued Executive Order 21-64  on March 10, 2021 extending the state of emergency previously declared for Hurricane Sally for the following Florida counties: Escambia, Santa Rosa, Calhoun, Franklin, Gadsden, Gulf, Holmes, Jackson, Jefferson, Liberty, Okaloosa, Walton, and Washington Counties. The emergency declared in Executive Order 20-224 , as amended by Executive Orders 20-248 , 20-279 , and 21-10 , has been extended for 60 days until May 9, 2021.

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

Category(s): Florida - 05/24/2021

The Florida Office of Insurance Regulation provided an update on the state of the property insurance market to the House Commerce Committee in late February. This report can be found here . Following this update, the OIR gathered supplemental information from the National Association of Insurance Commissioners (NAIC) Market Conduct Annual Statement (MCAS) Data Call to further demonstrate the state’s litigation trends in the insurance market. The OIR’s supplemental report  indicates Florida is home to three-quarters of the nation’s property insurance lawsuits. The OIR’s presentations can be viewed here .

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

Category(s): Georgia - 05/24/2021

In Georgia, Certificates of Insurance must comply with O.C.G.A. §33-24-19.1. A Certificate of Insurance only provides a synopsis of coverage under an insurance policy at the time of issuance, and does not include the insurance policy, insurance binder or insurance information card. According to the statutory definition, a Certificate of Insurance is prepared or issued by an insurer or insurance producer as evidence of property or casualty insurance coverage.
A Certificate of Insurance (1) must be issued on an ACORD form, ISO form or other forms explicitly approved by the Commissioner of Insurance; (2) form cannot be altered; and (3) form must contain the following specific disclaimer language required by the Commissioner: “This certificate of insurance is issued as a matter of information only and confers no rights upon the certificate holder. This certificate does not amend, extend or alter the coverage, terms exclusions and conditions afforded by the policies referenced herein.” It is a violation of the law to provide or request a Certificate of Insurance on an unapproved or altered form, or to include information that purports to alter or expand coverage. Fines can be up to $5,000 for each violation of the law.
The law governing certificates and relevant regulations applies to certificate holders, certificate requestors, policyholders, insurers, and insurance producers, wherever they may be located, as long as the certificate issued is for insurance coverage of property, operations or risks located in Georgia.

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

Category(s): Georgia - 05/27/2021

HB 205, will regulate travel insurance based on the NAIC’s Travel Insurance Model Act and has been sent to Governor. 
HB 254, will create a new regulatory framework for public insurance adjusters and has been sent to Governor.
HB 241, will amend O.C.G.A. § 33-7-7 to revise the definition of property insurance to exclude automobile tire and wheel road hazard protection products, auto key FOB replacement products and auto wear and tear lease waivers which are offered by third party obligors and insured by a contractual liability insurance policy and has been sent to Governor.
HB 234, will allow self-funded healthcare plans to elect to participate in Georgia’s Surprise Billing Consumer Protection Act and has been sent to Governor.  
HB 454, will require a health insurer to reimburse the cost of a healthcare provider listed in the insurer’s provider online directory for services rendered after the healthcare provider ceases to be in-network for a period ending on the earlier of 180 days after termination of the healthcare provider’s network contract or the last day of the covered person’s insurance coverage.  
HB 509, will, if the Patient Protection and Affordable Care Act were to be repealed, require health insurers to make available at least one reasonably priced comprehensive major health insurance policy available to Georgia residents in an insurer’s approved service areas.  
SB 43, will enact the "Noncovered Eye Care Services Act" , which prohibits health insurers from requiring an ophthalmologist or optometrist to accept customer payments set by a health insurer, or to provide discounts, for non-covered eye care services and has been sent to Governor.

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

Category(s): Indiana - 05/27/2021

The Indiana General Assembly finished up the 2021 legislative session a week earlier than expected on Thursday, April 22. The insurance industry entered this session with a focus on addressing COVID-19 liability. Action took place quickly as the House and Senate sent Senate Enrolled Act 1  to Governor Eric Holcomb before the end of February. The legislation provides civil immunity to businesses related to COVID-19 if certain conditions are met.
House Enrolled Act 1405  also passed and contained various provisions impacting insurers across all product lines.  The relevant insurance provisions include the following:
Establishes Indiana as a Deficit Reduction Act state for the purpose of the Indiana Long Term Care Partnership Program.  Requires existing Partnership Program policies to be given grandfather status from the federal government before implementing the change.
Requires medical records to be provided by a medical provider within 30-days of receipt of the request.  Allows for extension of time and fines.
Allows an insurance producer to carry over up to 12 CE credits per renewal cycle.
Specifies notices for cancellation and non-renewal for auto and home policies are to be “mailed”.  Current statute states such notices are to be “mailed or delivered”, which has created confusion and led to litigation.
Specifies pre-notice of cancellation or non-renewal for auto and home policies only needs to be sent to “independent” agents.
Provides a policyholder acquiring a policy electronically affirmatively consents to receive notices electronically. Requires paper documents to be provided if requested by the policyholder. 
Provides safe harbor protection against rebating for risk mitigation considerations provided to insureds.  Increases rebating threshold for agents to $250 and $500 for raffles.
Provides that a merchant or other seller that acts as an agent for purposes of the sale of an auto service contract is not a person contractually obligated under the service contract by virtue of acting as the seller.

Greg E. Mitchell, Esq. - Global Regulatory Risk & Compliance PLLC, (859) 229-7851 , greg.mitchell@globalreg-law.com
Jon M. Zarich, Esq. - Frost Brown Todd, LLC, (317) 237-3831 , jzarich@fbtlaw.com

Category(s): Montana - 05/24/2021

HB 379  which repeals Montana’s law prohibiting rating in all lines of insurance on the basis of sex has been signed by the Governor. HB 379 permits insurers to rate on the basis of sex and marital status along with all previous permitted factors. The bill was supported by Montana’s Commissioner of Insurance and will most highly impact auto and life insurance although it applies to non-ACA health insurance as well. The change takes effect January 1, 2022. We are expecting the law to be litigated.

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

Category(s): New Jersey - 05/24/2021

The New Jersey legislature recently overwhelmingly passed AB4805 , which if the governor signs would require New Jersey insurers to provide summaries of coverage for loss of use and occupancy of a commercial property. The bill sits on Governor Phil Murphy’s desk for signature.

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

Category(s): New York - 05/27/2021

On April 27, 2021, the New York State Department of Financial Services (“the Department” or “DFS”)  released a further report on the its investigation of the New York’s financial services industry’s response to the supply chain attack on SolarWinds (“the SolarWinds Attack ”). 
As all may recall, on Sunday, December 13th, it was publicly reported the Information Technology (IT) products and services company SolarWinds was hacked, and that its Orion IT monitoring and management product was corrupted with sophisticated malware. During the SolarWinds Attack, hackers corrupted routine software updates that were downloaded onto thousands of organizations’ information systems.  
This malware was then spread through software updates to their customers around the globe, including financial services institutions.  We are aware that several regulated entities were infected with this malware.
According to DFS ’further report, this intrusion is active and ongoing, and the adversary responsible for the compromise is sophisticated, well-resourced, and persistent.  The Cybersecurity & Infrastructure Security Agency (CISA) has also advised, “the SolarWinds Orion supply chain compromise is not the only initial infection vector this APT actor leveraged,” and this adversary has compromised organizations that were not using SolarWinds Orion.  (“CISA APT Alert ”).  In short, the CISA advised: be prepared for more bad news to come.
The April 27, 2021 update furthers DFS’s commitment to improving cybersecurity and sharing information to protect consumers and the industry.  DFS has also issued multiple alerts regarding ongoing cyber threats, including the SolarWinds Attack , weaknesses in Microsoft Exchange Server , and an ongoing cyber fraud campaign  identified by the Department.

Frederick J. Pomerantz, Esq. - INSURANCE LEGAL & REGULATORY CONSULTING, PLLC, (516) 297-3101 , PomerantzF35@gmail.com

Category(s): Washington - 05/28/2021

On April 16, 2021, Washington Insurance Commissioner Kreidler recently issued an order  prohibiting insurers in the state from using credit scores in auto, homeowners, and renter’s insurance. Insurance company groups sought to delay Washington’s insurance commissioner Kreidler’s order preventing the use of credit scores in auto, homeowners, and renter’s insurance premium calculations. Kreidler submitted an opposition brief, citing reasoning for the order. The Court denied the motion - insurer groups “were unlikely to succeed with their arguments, and that Kreidler demonstrated good cause for the emergency rule and did not exceed his authority as the regulator of insurance practices in the state.”

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