Category(s): National - 07/24/2023

The Senate Budget Committee, led by Senator Whitehouse (D-RI), alongside Senators Wyden (D-OR) and Sanders (I-VT), initiated an investigation into the evaluation of climate-related risks by major U.S. insurance companies. The committee seeks to understand why these companies continue to support and underwrite fossil fuel expansion projects that contribute to climate risks. They have also raised concerns about the lack of transparency surrounding the insurance industry’s decision-making processes and the pricing of policies that insure such projects.

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

Category(s): California - 07/24/2023

On July 14, 2023, the CDI issued a Pre-Hearing Notice - Export List Hearing Request for Proposed Additions, Modifications or Deletions to the Export List  notifying interested parties of the opportunity to make recommendations for additions to or deletions from the Export List in advance of the hearing, which is to be scheduled in the next few months. The Export Lists identifies types of coverage or risk that can be placed on a surplus line basis without a diligent search of the admitted market because the Commissioner has determined that 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.

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

Category(s): Florida - 07/24/2023

On May 2, 2023, Gov. Ron DeSantis put his pen to paper against so-called “woke” banking. HB 3 aims to “protect Florida retirement accounts and state investments from financial discrimination by eliminating the consideration of environmental and social governance investment strategies” and “protect Floridians from being denied loans based on their political or social beliefs.” DeSantis noted the legislation follows up on and amplifies last year’s ban of ESG investments on the state level, such as pension funds.

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

Category(s): Florida - 07/24/2023

On May 31, 2023, Governor Ron DeSantis signed into law CS/SB 7052, by Senator Travis Hutson (R-Palm Coast), relating to Insurer Accountability. The bill, was approved by the legislature in the final days of the 2023 Regular Session and includes provisions relating to insurance coverage, claims handling, rates, and the state's regulatory oversight of insurers. The bill took effect on July 1, 2023.

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

Category(s): Florida - 07/24/2023

On May 16, 2023, Governor Ron DeSantis signed CS/SB 1002 Motor Vehicle Glass by Senator Linda Stewart (D-Orlando) and CS/CS/HB 487 Department of Financial Services by Representative Michelle Salzman (R-Cantonment) into law which, except as expressly specified the bills, were effective upon becoming law. This legislation provides measures to allow for firefighters’ charitable donations by creating a Direct Support Organization (DSO) to support financial efforts to protect their communities and provide life-saving equipment and resources.

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

Category(s): Florida - 07/24/2023

On June 5, 2023, Insurance Commissioner Michael Yaworsky announced the appointment of Sheryl Parker as the Florida Office of Insurance Regulation (OIR)’s first Deputy Commissioner of Market Regulation and Virginia Christy as OIR’s Deputy Commissioner of Property and Casualty. The Deputy Commissioner of Market Regulation position was created to further protect insurance consumers from unlawful or harmful business practices. The Deputy Commissioner of Property and Casualty oversees the Property and Casualty Financial Oversight and Product Review units.

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

Category(s): Georgia - 07/24/2023

On July 18, 2023, Commissioner John F. King issued Directive 23-EX-3 to inform that as of July 1, 2023, HB 315 modified O.C.G.A. 33-24-59.32 to allow the Commissioner to pass appropriate rules and regulations for diagnostic and supplemental breast screening examinations. In accordance with that authority, the Department is directing that the terms “diagnostic breast examination” and “supplemental breast screening examination” shall be defined by the guidelines established by the National Comprehensive Cancer Network as of January 1, 2022.

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

Category(s): Georgia - 07/24/2023

In Hughes v. Ace American Insurance Company, Case No. A23A0609 (May 26, 2023), the Georgia Court of Appeals affirmed the lower court’s summary judgment in favor of Ace American that a passenger van operated by home health services company that transported its patients to and from various locations, such as physicians’ offices, pharmacies and grocery stores, as an ancillary part of its business was not a motor carrier for purposes of the direction action statute under Georgia’s Motor Carrier Act, and therefore Hughes, whose truck was involved in an accident with the van, could not maintain a direct action against Ace American under its commercial auto insurance policy issued to the home health services company. The court reasoned that the van was not operated by a motor carrier because there was no separate charge to the patients for the transportation services and these services were merely ancillary to the primary business of rendering rehabilitative home health care support, which did not make the home health care services company engaged in transporting passengers for hire.

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

Category(s): Georgia - 07/24/2023

On May 22, 2023, the Georgia Insurance Commissioner announced his appointment of Cheryl Gardner as the first Executive Director of Georgia’s new state-based health insurance exchange, Georgia Access, which will open for business for the 2024 plan year.  Mr. Gardner’s experience includes having served as the Chief Executive Officer of BeWellnm (New Mexico’s health insurance exchange), Executive Director of the Arkansas Health Insurance Marketplace and Director of Policy and Strategy for the Utah Health Exchange.

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

Category(s): Georgia - 07/24/2023

In a recent unpublished decision of the 11th Circuit Court of Appeals in Century Communities of Georgia LLC v. Selective Way Insurance Co., No. 19-14697 (11th Cir. 2023), it was held that the Georgia Supreme Court’s 2012 decision in Hoover v. Maxum Indemnity Co., 730 S.E.2d 413 (Ga. 2012), addressing that an insurer’s waiver of policy defenses does not apply to coverage defenses, i.e., whether a loss is potentially covered under a policy. Rather, under Hoover, only certain policy defenses, being whether a procedural condition of the insurance contract has been fulfilled, can be subject to a waiver.

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