Category(s): National - 11/21/2022

The Agreement between the Government of the United States of America and the Government of the United Kingdom of Great Britain and Northern Ireland on Access to Electronic Data for the Purpose of Countering Serious Crime (the “Data Access Agreement” or the “Agreement”) entered into force on October 3, 2022. The Agreement is authorized by the Clarifying Lawful Overseas Use of Data Act or the CLOUD Act, a law enacted by the United States Congress in 2018, and will be the first agreement of its kind, allowing each country’s investigators to gain better access to vital data to combat serious crime in a way that is consistent with privacy and civil liberties standards.

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

Category(s): National - 11/21/2022

The Treasury’s Federal Insurance Office (FIO) announced its intention to begin collecting data from insurers across the country in an effort to evaluate climate-related risk. FIO is seeking public input on a proposal to collect data from property and casualty insurers to gather current and historical underwriting data on homeowners’ insurance.

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

Category(s): California - 11/21/2022

On September 22, 2022, the California Department of Insurance published its annual “REQUEST FOR PROPOSED ADDITIONS, MODIFICATIONS OR DELETIONS TO THE EXPORT LIST”  requesting comments suggesting additions, deletions, or other modifications to the export list in advance of the scheduling of a hearing in the next few months.  The export list is a list of coverages determined to be suitable for placement in the surplus lines market without a diligent search because there is not a reasonable or adequate market among admitted insurers or that the type of coverage is for new, innovative products for which a reasonable or adequate market among admitted insurers has not had time to develop. The Export List hearing has been set for November 22, 2022, at 10:00 a.m. pacific.  Participation is by telephone by calling 877-226-8189 and entering 6170437 as the passcode.  Those who wish to speak are asked to RSVP to ExportListHearing@insurance.ca.gov with the names of participants, the organization they represent, and the e-mail address of each participant.

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

Category(s): California - 11/22/2022

On October 14, 2022, as part of the Safer from Wildfires Framework, new Section 2644.9 of title 10 of the California Code of Regulations (Consideration of Mitigation Factors; Wildfire Risk Models) became effective.  This regulation requires insurers that use wildfire risk in rating to file new rating plans incorporating wildfire safety standards and to establish a process for releasing wildfire risk determinations to residents and businesses within 180 days.  A copy of the regulation is available here.  The California Department of Insurance’s press release is available here. 

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

Category(s): Florida - 11/21/2022

As Florida’s property insurance crisis continues to worsen following Hurricane Ian, Governor Ron DeSantis announced on October 20, 2022, that Florida legislative leaders have agreed to hold a special session following the midterm election on November 8, but prior to the end of the 2022. This special session will be used to address property taxes and property insurance in the aftermath of Hurricane Ian. This is the second time this year that legislators will address Florida's turbulent property insurance market.

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

Category(s): Florida - 11/21/2022

The Florida Department of Financial Services (DFS), Division of Consumer Services, proposed Rule 69J-123.003, Property Insurance Intent to Initiate Litigation in the October 26, 2022, edition of the Florida Administrative Rules Register. The rulemaking implements section 627.70152, Florida Statutes, which requires claimants under a residential or commercial property insurance policy to provide pre-suit notice of intent to initiate litigation to the insurer. The statute requires the Department of Financial Services to accept the notice and provide it to the appropriate insurer. The rule creates a form for claimants to provide statutory notice to insurers of the claimant’s intent to file a claim prior to initiating a lawsuit. See proposed rule here. 

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

Category(s): Florida - 11/21/2022

Florida Insurance Commissioner David Altmaier issued an emergency order  on September 28, 2022, that temporarily prevents property insurers from dropping customers in the aftermath of Hurricane Ian. No insurer under the Florida Insurance Code will be allowed to cancel or non-renew a policy covering a property or risk between September 28, 2022, and November 28, 2022. The order also temporarily shields homeowners from losing policies if their properties are damaged in Hurricane Ian. Insurers will be barred from canceling or non-renewing policies for at least 90 days after the properties are repaired.

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

Category(s): Georgia - 11/22/2022

On October 18, 2022, the Georgia Court of Appeals sent a contested arbitration award confirmation case back to the trial court following a Georgia Supreme Court  ruling that an arbitrator didn't manifestly disregard the law, ordering the lower court to rule on issues related to attorney fees and post-judgement interest. The appellate court previously held, in what was believed to be a first-of-its-type decision in Georgia, that an arbitrator deliberately ignored applicable law when he found in favor of Southern Mountain Adventures LLC and its affiliate Adventure Motorsports Reinsurance Ltd., awarding them nearly $500,000 in their commissions and fees dispute with vehicle service contract provider Interstate National Dealer Services Inc.  (later renamed Revolos and now owned by Protective Life). However, in December 2021, the Georgia Supreme Court reversed the Court of Appeals' ruling, finding that the arbitrator never expressed during the arbitration hearing in the dealership companies' fees dispute or in the subsequent award that the correct law should be ignored. In the appellate court’s recent ruling it adopted similar reasoning when addressing Interstate National's only remaining argument on remand — that the arbitrator had overstepped his authority under Georgia law in the way he interpreted the parties’ contracts and calculated the award. The panel said it was "clear" that the arbitration award was made "pursuant to and within the scope of the arbitration agreement entered into by the parties specifically to resolve this dispute."

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

Category(s): Georgia - 11/21/2022

On October 17, 2022, Commissioner John F. King issued Directive 22-EX-6 to inform that the practice of white bagging is prohibited at any hospitals the Georgia Department of Community Health has qualified as being eligible for the Georgia HEART program. This Directive is expanding the scope of Directive 22-EX-5.  Full text of Directive can be found here. 
A list of qualified hospitals may be found here. 

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

Category(s): Georgia - 11/22/2022

On October 25, 2022, the Georgia Supreme Court issued its long awaited opinion in response to certified questions from the Eleventh Circuit Court of Appeals in Crum v. Jackson National Life Insurance Company. 
In this case, Kelly Couch had purchased a $500,000 life insurance policy in 1999 when he was 32 years of age with the intention of later selling it, which he eventually did to Crum eight months later. Couch died in 2005, and a few years later Crum made a claim for payment of the policy’s death benefit. In response to the death benefit claim, the life insurer filed a declaratory-judgment action, seeking a declaration that the policy was void ab initio under Georgia law as an illegal human-life wagering contract. As reframed by the Georgia Supreme Court the main question addressed was: “Is a life-insurance policy an illegal wagering contract if the insured takes out the policy on his own life with the intent to sell the policy to a third party with no insurable interest, but without a third party’s involvement in causing the policy to be procured?” The Georgia Supreme Court responded: “…[u]nder Georgia law, a life-insurance policy taken out by the insured on his own life with the intent to sell the policy to a third party with no insurable interest, but without a third party’s involvement when the policy was procured, is not void as an illegal wagering contract.”

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