Category(s): National - 07/25/2022

The International Association of Insurance Supervisors (IAIS) has launched a public consultation on the draft criteria that will be used to access the comparability outcomes of the Aggregation Method to the Insurance Capital Standard.

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

Category(s): California - 07/25/2022

On June 10, 2022, Commissioner Lara issued a notice  of the intent of the California Department of Insurance (“CDI”) to hold an investigatory hearing on July 13, 2022 with respect to the operations, policies and procedures of the California FAIR Plan Association (“FAIR Plan”). The stated purpose of the investigation is to determine whether changes are needed to make it better meet the needs of California consumers. In person and virtual participation are available for interested parties, and written comments are welcome. The CDI indicated that it will approach stakeholders and invite their participation; and may issue subpoenas for documents and live testimony.
The FAIR Plan is a statutory “insurer of last resort” for property insurance (both residential and commercial) in California that takes the form of a joint reinsurance association of all insurers licensed to write property insurance in California. The FAIR Plan was created in 1968, and since that time, its mandate has been expanded. It was legislatively required to adopt a new plan of operations in 2021.

Nicole M. Zayac, Esq. - Willkie Farr & Gallagher LLP, (415) 858-7443 , nzayac@willkie.com

Category(s): California - 07/25/2022

On June 1, 2022, The CDI issued Bulletin 2022-3  “Coverage Limits on Screening, Diagnosis and Treatment of Sexually Transmitted Infections” reminding insurers of their coverage obligations with respect to screening, diagnostic testing, and treatment of STIs. The Bulletin was issued in response to complaints alleging that insurers are putting inappropriate annual limits on STI screening. Insurers are instructed to review the Bulletin and ensure their practices are in compliance.

Nicole M. Zayac, Esq. - Willkie Farr & Gallagher LLP, (415) 858-7443 , nzayac@willkie.com

Category(s): Florida - 07/25/2022

Chief Financial Officer (CFO) Jimmy Patronis announced the appointment of Charles “Charlie” H. Lydecker, of Daytona Beach, to the Citizens Property Insurance Corporation Board of Governors. Mr. Lydecker’s appointment is effective August 1, 2022 and expires July 31, 2025. CFO Jimmy Patronis said, “Charlie Lydecker is a consummate insurance professional with more than three decades of experience, including property and casualty. As a business owner himself, I know he will bring the utmost professionalism and work ethic to the Citizens Board. We all know the unique challenges Florida’s hardening insurance market is facing, and I believe Charlie will help the board navigate those issues including fighting fraud and protecting policyholders.” Read the press release here. 

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

Category(s): Florida - 07/25/2022

The Florida Office of Insurance Regulation (OIR) issued an informational memorandum regarding the implementation of CS/SB 2D Property Insurance by Sen. Jim Boyd (R-Bradenton) which was passed during the recent Special Session D. The bill was signed by the Governor on May 26. The memorandum formally notifies all personal and commercial residential property insurers authorized to do business in Florida of the passage of the legislation and provides guidance to help facilitate the expedited review of rate filings related to the newly formed RAP program.

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

Category(s): Florida - 07/25/2022

The Legislature passed CS/SB 2D relating to Property Insurance by Sen. Jim Boyd (R-Bradenton) during Special Session. The goal of the legislation is to stabilize the failing property and casualty insurance market. The bill outlines measures including adopting the federal standards for contingency risk multipliers and allowing insurers to offer a separate roof deductible. The bill was signed by Governor Ron DeSantis on May 26, 2022.

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

Category(s): Florida - 07/25/2022

The Restoration Association of Florida and Florida Premier Roofing LLC challenged the constitutionality of SB 4D on June 2. The lawsuit, filed in Leon County circuit court, came after a separate challenge was filed May 31 against SB 2D. The lawsuit challenges the roofing change but also contends that the overall bill is unconstitutional because it ties together “voluminous distinct subjects.” The plaintiffs contend it violates a constitutional requirement that laws deal with single subjects.

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

Category(s): Georgia - 07/27/2022

On June 30, 2022, Commissioner John F. King issued Directive 22-EX-4 to advise insurance carriers of new requirements pursuant to HB 733 and the interpretation of such by the Office of Commissioner of Insurance and Safety Fire (the “Department”). Effective May 6, 2022, HB 733 amended O.C.G.A §33-24-59.31 with new requirements on health benefit policies issued, delivered, issued for delivery or renewed on or after January 1, 2023.
The relevant portion of HB 733 states “A health benefit policy that provides coverage for diagnostic examinations for breast cancer shall include provisions that ensure that the cost-sharing requirements applicable to diagnostic and supplemental breast screening examinations are no less favorable than the cost-sharing requirements applicable to screening mammography for breast cancer.”
In order to determine if the cost-sharing requirement is met, the Department will look to the actual dollar value the insured is expected to pay (the out-of-pocket costs to the consumer) rather than the percentage of the cost of the procedure to the insured. For example, if a policy provided $50 out-of-pocket costs for a screening mammography, the Department expects the same or less out-of-pocket costs for diagnostic and supplemental breast screening examinations.

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

Category(s): Georgia - 07/25/2022

Come November, there will be an election for Insurance Commissioner in Georgia.  The incumbent is Commissioner John F. King (R), appointed by Governor Kemp, and the first statewide Hispanic official. He has a long, decorated background in the military and law enforcement J. King  and has held this office since 2019. The challenger is Janice Laws Robinson (D),  insurance agent since 2003 and owner of an insurance agency in Atlanta since 2014. She ran in 2018 against Jim Beck, who won the election but was thereafter convicted of fraud and money laundering; she received 46.99% of the vote. 

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

Category(s): New York - 07/25/2022

“A fast-moving industry like virtual currency requires strong regulation. Regulation plays an important role in protecting consumers against market volatility and scams; maintaining the integrity of the market by guarding against sanctions evasion  and illicit activity;  and ensuring corporate infrastructure and consumer data are both well-protected from cybercriminals. These are the critical risks that we at DFS are committed to mitigating as the preeminent regulator of virtual currency. I discussed these important topics and more at a number of public and industry events this week, including the Wall Street Journal’s Future of Everything,  Chainalysis Links,  and Operation Hope’s Cryptocurrency + Digital Assets Summit.  As the industry continues to evolve, DFS will continue to improve upon our regulation and supervision; engage with key stakeholders on important trends and issues; collaborate with state, federal and international regulators; and strive to be a forward-looking, innovative regulator, including through our VOLT initiative.  Through all of these efforts, DFS is keeping New York at the center of technological innovation and forward-looking regulation so that New Yorkers have a well-regulated way to access the virtual currency marketplace.”

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