Category(s): National - 09/12/2022

At NCOIL’s Summer National Meeting in Jersey City, NJ, members unanimously adopted a Resolution Identifying Certain Enhanced Cash Surrender Value Endorsements As Violating The Standard Nonforfeiture Law. The Resolution is in response to some life insurers disregarding the Standard Nonforfeiture Law’s “smoothness requirement”. The “smoothness requirement” prohibits sharp increases in cash values.

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

Category(s): Florida - 09/12/2022

Florida’s insurer of last resort, Citizens Property Insurance Corporation has surpassed 1 million policies for the first time since 2013. The state-backed government entity was established by the Florida Legislature to provide insurance coverage to property owners who cannot find private insurance.

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

Category(s): Florida - 09/12/2022

On August 5th, Florida Governor Ron DeSantis appointed current 15th Circuit Court Judge Renatha Francis as the newest addition to the Florida Supreme Court. The appointment comes as Florida Supreme Court Justice Alan Lawson announced his retirement in late April. This marks the sixth Florida Supreme Court appointment for Governor DeSantis.

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

Category(s): Florida - 09/12/2022

As a result of the passage of SB 76 during the 2021 Legislative Session, codified as section 624.424(11), F. S., each authorized insurer issuing personal lines or commercial lines residential property insurance policies shall report to the Office of Insurance Regulation, for specified lines of insurance, an annual Florida Property Claims Litigation data call on a form prescribed by the Financial Services Commission detailing closed claim experience. Rule 69O-171.011, F.A.C., is created to implement section 627.7152, F.S. Form OIR-B1-2221 is incorporated by reference and contains information insurers must report to the Office pursuant to the statute.

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

Category(s): Georgia - 09/22/2022

On August 19, 2022, Commissioner John F. King issued Directive 22-EX-4 to remind surplus line insurers and brokers that it is unlawful to charge customers added fees in conjunction with the sale of a surplus line insurance policy. With specific exceptions, a surplus line insurer or broker may not collect any sum in excess of the premiums and charges for insurance specified by the insurer in the insurance policy. 
According to the Directive, collecting any sum in excess of fees specified in the insurance policy would be considered an unfair method of competition and unfair and deceptive act or practice in the business of insurance. The surplus lines industry is discussing the Directive with the Department since the Directive appears to contradict previous Department policies and long-standing practices within the industry.

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

Category(s): Georgia - 09/12/2022

On August 19, 2022, the federal Southern District Court Georgia handed a victory to the State of Georgia in its lawsuit against the Centers for Medicare and Medicaid Services (CMS) in its attempt to revoke “Georgia Pathways”, the state’s demonstration project for Medicaid coverage expansion for low-income earning Georgians, which the Trump Administration approved in October 2020 and CMS has subsequently tried it revoke, claiming that the applicant eligibility requirements would not further the purposes of Medicaid. Under the Georgia Pathways, to become eligible for expanded Medicaid coverage, an applicant would be required to complete eighty hours of qualifying activities like work or education each month. In this case, the court held that CMS’s revocation was arbitrary and capricious and granted the state’s motion for summary judgement.

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

Category(s): Georgia - 09/12/2022

On August 5, 2022, the Georgia Insurance Department held a hearing on several proposed new regulations and proposed amendments to certain existing regulations, including a proposed amendment to Georgia Insurance Regulation 120-2-94, “Suitability in Annuity Transactions”. The proposed amendment would have modified the annuity suitability regulation through brevity by simply inserting the phrase “shall act in the best interest of the consumer under the circumstances known at the time the recommendation is made, without placing the producer’s or the insurer’s financial interest ahead of the consumer’s interest”, rather than revising the entire regulation to conform it to the NAIC’s Suitability in Annuity Transactions Model Regulation, adopted by the NAIC in early 2020. Based on life insurance and annuity industry testimony, the Georgia Insurance Department has determined not to proceed with its proposed amendment and will likely re-propose an entirely new regulation based on the NAIC’s model.

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

Category(s): Maryland - 09/12/2022

The Maryland Insurance Administration (MIA) recently published Bulletin 22-09 pertaining to Senate Bill 572/ House Bill 563, entitled Insurance-Surplus Lines Brokers – Policy Fees.  This bill amends s.27-216 of the Insurance Article by: (1) clarifying that a qualified surplus lines broker to charge a reasonable policy fee on a policy issued by a surplus line insurer to an exempt commercial policyholder; (2) allowing a qualified surplus lines broker to charge a reasonable policy fee not exceeding $200 on each personal lines policy issued by a surplus lines insurer; and (3) allowing a qualified surplus lines broker to charge a reasonable policy fee not exceeding $500 or 7% of the policy premium, whichever is greater, on each non-exempt commercial lines policy issued by a surplus lines insurer.  The bulletin makes clear that pursuant to current law, “in all instances, the policy fee charged must be reasonably related to the cost of underwriting, issuing, processing, and servicing the policy by the surplus lines broker for the surplus lines insurer.”  To verify fees charged are compliant, the MIA is adding a new column to the Surplus Lines Quarterly Report for brokers to disclose the policy fee amount associated with each policy beginning with the report for the 3rd quarter of 2022, which must be submitted by November 15, 2022.

Brett S. Lininger, Esq. - THE CAPITAL LAW FIRM, P.A., (443) 321-9988 , brett@kresshammen.com

Category(s): NAIC - 09/12/2022

The NAIC Climate and Resiliency (EX) Task Force completed its first full year of work in August 2022. Several additional states will not require insurers domiciled in their states to submit the climate disclosure survey.

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

Category(s): New York - 09/12/2022

As reported on June 6, 2022 in City and State New York, New York State’s legislative year came to a close in a timely fashion with lawmakers left riding the highs of new gun legislation, strengthening abortion access and codifying voting rights in state law. But despite major victories in those areas, which will no doubt play well on the campaign trail, a slew of activists were left disappointed as leaders left their priorities on the table. 
Both gun laws and abortion rights became priorities for lawmakers at the end of the session, with many negotiations revolving around what a final deal on those two topics would look like. In the end, lawmakers approved a series of 10 gun bills and six abortion bills, announced to fanfare. 
Those two issues were hardly the only ones that lawmakers addressed during the session. By the time they went home, state legislators had passed over 1,000 pieces of legislation. The state Senate managed to revive one major environmental priority – a moratorium on cryptocurrency mining – from the dead, sending it to Governor Kathy Hochul to decide whether or not to sign it. 
Advocates for the community demanded more action after the budget failed to replenish the Excluded Workers Fund or expand publicly subsidized health care to all regardless of immigration status. Immigrant rights, criminal justice reform and housing, among the biggest issues in Albany, ultimately fell to the wayside as pressing, recent national issues took the forefront. 
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Frederick J. Pomerantz, Esq. - INSURANCE LEGAL & REGULATORY CONSULTING, PLLC, (516) 297-3101 , PomerantzF35@gmail.com