Alert Edition January 2023

Welcome to the January 2023 edition of the FORC Alert. If you have any colleagues that may be interested in this publication, please forward it on. There is a link on the Alerts main page where they can subscribe to receive FORC Alerts automatically.

Regards,
C. Ignacio Matos, Esq., FORC Alert Co-Editor
Ryan Smart, Esq., FORC Alert Co-Editor
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Category(s): National - 01/29/2023

Congress Reauthorizes NFIP

On December 23, President Biden signed legislation that was passed by Congress that extends the National Flood Insurance Program’s (NFIP’s) authorization to September 23, 2023.

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

Category(s): National - 01/29/2023

NCOIL Adopts Four New Model Laws

During the 2022 National Council of Insurance Legislators (NCOIL) National Meeting, members voted to adopted four new Model Las. The Model Laws include NCOIL Paid Family Leave (PFL) Insurance Model Act; the NCOIL Insurance Regulatory Sandbox Model Act; and two Property and Casualty Insurance Models. Read about the laws here. 

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

Category(s): National - 01/29/2023

Nevada, North Dakota, Colorado and Puerto Rico Receive NAIC Accreditation

The National Association of Insurance Commissioners (NAIC) Financial Regulation Standards and Accreditation (F) Committee voted to accredit the Nevada, North Dakota, Colorado and Puerto Rico departments of insurance at the NAIC Fall National Meeting. To become accredited, the DOI must submit to a full on-site accreditation review by a team of independent consultants, who evaluate the department’s capabilities in financial solvency laws and regulations, financial analysis and examination capabilities, organizational and personnel practices, primary licensing, redomestications, and change of control of domestic insurers.

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

Category(s): Florida - 01/29/2023

CFO Jimmy Patronis on State Bond Report: Florida’s Economy Continues to Flourish

On December 16, the State of Florida Division of Bond Finance issued the 2022 State Debt Report. The report reveals that the state retained its exceptional AAA bond rating, decreasing debt by $1.3 billon, while increasing revenues by $8.5 billion (17%). Shortly following the reports publication, Chief Financial Officer Jimmy Patronis released a statement, affirming that “Florida’s economy is in excellent shape and continues to flourish”. Patronis added, “Also, the State has refunded over $16 billion in outstanding debt in the last 10 years. This is equivalent to $3.4 billion in debt service savings due to lower interest rates.”

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

Category(s): Florida - 01/29/2023

Citizens’ CEO Barry Gilway to Retire

During the Board of Governors meeting held on December 22, Barry Gilway formally announced his intentions to step down from his position as President, CEO, and Executive Director of Citizens Property Insurance Corporation. Tim Cerio, General Counsel for Citizens, will step in as interim CEO.

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

Category(s): Florida - 01/29/2023

DFS Activates Renewed My Safe Florida Home Program

The Florida Department of Financial Services has announced the re-activation of the My Safe Florida Home program. The program offers free windstorm mitigation home inspections to eligible applicants and allows them to apply for matching funds up to $10,000 to add storm protection features to their homes.

Travis L. Miller, Esq. - RADEY LAW FIRM, (850) 425-6654 , tmiller@radeylaw.com

Category(s): Florida - 01/29/2023

Florida Insurance Commissioner Resigns

Florida Insurance Commissioner David Altmaier tendered his resignation  on December 15. His last day was December 28. On December 20, the state’s life and health insurance regulator, John Reilly, announced that he would be stepping down from his position. Reilly is the third person to resign, following a similar departure announcement made earlier in the month by Deputy Commissioner of Property & Casualty, Susanne Murphy.

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

Category(s): Florida - 01/29/2023

Florida Legislature Eliminates State’s “One-Way” Right to Attorneys’ Fees

In a December special session, the Florida legislature eliminated a law that previously allowed policyholders’ prevailing in litigation against property insurers to recover attorneys’ fees. Governor Ron DeSantis signed the new provision into law on December 16, 2022. Abuses ultimately arising from the so-called one-way right to attorneys’ fees has been a root cause of problems in Florida’s property insurance market.

Travis L. Miller, Esq. - RADEY LAW FIRM, (850) 425-6654 , tmiller@radeylaw.com

Category(s): Florida - 01/29/2023

Florida Seeks to Fill Insurance Commissioner Position

The Florida Financial Services Commission, consisting of the state’s Governor, Chief Financial Officer, Attorney General and Commissioner of Agriculture, will have the opportunity to name a new insurance commissioner in 2023. Insurance Commissioner David Altmaier announced in December that he would be leaving his post effective December 28. Altmaier served in various roles within the Florida Office of Insurance Regulation during his 14-year career with the state.  He also was president of the National Association of Insurance Commissioners in 2021.

Travis L. Miller, Esq. - RADEY LAW FIRM, (850) 425-6654 , tmiller@radeylaw.com

Category(s): Florida - 01/29/2023

Governor Ron DeSantis Signs Two Bills to Support Disaster Relief and Help Stabilize Florida’s Property Insurance Market

On December 16, Governor Ron DeSantis signed two bills aimed at providing disaster relief for Floridians impacted by Hurricanes Ian and Nicole, as well as attempt to stabilize the volatile property insurance market in the state. Senate Bill (SB) 4-A will contribute an additional $750 million towards ongoing disaster relief efforts. Senate Bill (SB) 2-A is a reform bill directed at disincentivizing frivolous lawsuits and implementing stringent deadlines and requirements for the claims process.

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

Category(s): Florida - 01/29/2023

Hurricane Ian Flood Payments Up To $1.46 Billion In Florida

On December 19, the Federal Emergency Management Agency (FEMA) promulgated an update on continuing Hurricane Ian recovery efforts. The agency announced The National Flood Insurance Program has received nearly 45,300 claims from the Category 4 hurricane, since it made landfall on September 28 in Southwest Florida and brewed across the state. The program has paid more than $1.46 billion to policyholders who sustained damage in Hurricane Ian, while the number of claims continues to climb increase.

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

Category(s): Florida - 01/29/2023

New Law Bans Post-Loss Assignments as of January 1, 2023

The Florida legislature met in special session in mid-December. Among the law changes, a new provision prohibits the assignment of post-loss benefits on residential and commercial property insurance policies issued on or after January 1, 2023.

Travis L. Miller, Esq. - RADEY LAW FIRM, (850) 425-6654 , tmiller@radeylaw.com

Category(s): Florida - 01/29/2023

OIR Issues Notice to Industry

The Florida Office of Insurance Regulation (OIR) issued a Notice to Industry on December 22, 2022. OIR is requiring enhanced catastrophe reporting for Hurricane Ian for January 2023. The reporting deadline for January is Wednesday, January 11, 2023. Insurers are to report Hurricane Ian claims data using the Enhanced 2022 CRF.

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

Category(s): Georgia - 01/29/2023

BULLETIN 22-EX-7: Annual Submission of Mental Health Parity Comparative Analyses Report

On November 29, 2022, Commissioner John F. King issued Bulletin 22-EX-7 to remind health insurers that offer coverage for mental health or substance use disorders must comply with Georgia’s Mental Health Parity Act. The Mental Health Parity Act requires health insurers to submit a comparative analyses report on mental health parity on an annual basis to the DOI. Insurers must have submit mental health parity data to marketconduct@oci.ga.gov by January 1st, 2023.

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

Category(s): Georgia - 01/29/2023

BULLETIN 22-EX-8: Clarification of BULLETIN 22-EX-7 on Annual Submission of Mental Health Parity Comparative Analyses Report

On December 6, 2022, Commissioner John F. King issued Bulletin 22-EX-8 to clarify that Insurers will be deemed to have met the annual filing requirements of Georgia’s Mental Health Parity Act if they submit to the Department the same analysis and form they submit to CMS to show compliance with 42 U.S.C. Section 300gg-26(a)(8)(A).  Insurers who have yet to submit anything to CMS to show compliance with 42 U.S.C. Section 300gg-26(a)(8)(A) should refer to the instructions set forth in Bulletin 22-EX-7.

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

Category(s): Georgia - 01/29/2023

BULLETIN 23-EX-1: Consumer Warning Regarding Public Adjusters

On January 18, 2023, Commissioner John F. King issued Bulletin 23-EX-1 to provide a consumer wanting about Public Adjusters. As noted in the Bulletin, Public Adjusters are required to receive approval from the Commissioner for all contract forms used to act directly or indirectly as a Public Adjuster. The Commissioner strongly recommends that consumers check the status of a Public Adjuster’s license prior to entering a contract and report any suspicious activity to the Department.

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

Category(s): Georgia - 01/30/2023

Eleventh Circuit Court of Appeals Adopts Georgia Supreme Court’s Insurable Interest Decision

On December 12, 2022, the Eleventh Circuit Court of Appeals in Crum v. Jackson National Life Insurance Company issued its opinion adopting the Georgia Supreme Court’s October 2022 answer to a certified question: “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.” However, the federal appellate court, while reversing the federal district court, remanded the case for it to determine whether the claim for life insurance death benefits is barred by the doctrine of laches based on the fact that the insured died in 2005 and the claim was not filed with the insurer until eleven years later in 2016.

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

Category(s): Georgia - 01/29/2023

Georgia Key General Elections

Incumbent Republican Georgia Insurance Commissioner John F. King won the election Georgia for Insurance Commissioner’s Office on November 8, 2022. Incumbent Republican Georgia Governor Brian Kemp was reelected, defeating Democrat candidate Stacey Abrams who he also defeated in 2018. Incumbent Republicans Secretary of State Brad Raffensberger and Attorney General Chris Carr also won their races. The Georgia State Senate and Georgia House of Representatives remain solidly in Republican control. 
Incumbent Democrat Senator Raphael Warnock defeated Republican candidate Herschel Walker in a special run-off election held on December 6, 2022.

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

Category(s): Missouri - 01/29/2023

Missouri Director of Insurance Elected 2023 NAIC President

Missouri Department of Commerce and Insurance Director Chlora Lindley-Myers was elected NAIC President for the 2023 term as the first woman of color to hold this position. Members of the National Association of Insurance Commissioners (NAIC) elected officers for 2023 December 16, 2022, during the Fall 2022 National Meeting in Tampa, FL. Director Lindley-Meyers sent out through the MO DCI News Release her thoughts on being elected the 2023 NAIC President with the following quote: “I am excited to take on this challenge and yet humbled by the faith my fellow NAIC members have shown by electing me. While it’s taken over 150 years for the NAIC to have a woman of color leading the organization, I have high hopes that this first step will open the door to many qualified women of color to follow me. We have a great deal of work to do for our consumers. I am eager to work with my fellow Commissioners, Directors, and Superintendents to ensure that work is done well.”

Ann Monaco Warren, Esq. - INGLISH & MONACO, P.C., (573) 634-2522 , awarren@inglishmonaco.com

Category(s): Mississippi - 01/29/2023

The Mississippi Legislature Convened the 2023 Regular Session

The Mississippi Legislature convened the 2023 Regular Session on January 3. This is the final session of the four-year term and is scheduled for a 90 day duration. Anticipated insurance legislation includes exclusion of builder’s risk insurance from Mississippi’s valued policy law, pet insurance regulation, and a variety of health insurance initiatives.

Robert B. House, Esq. - JONES WALKER LLP, (601) 949-4830 , rhouse@joneswalker.com

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