Category(s): Alabama - 05/31/2023

The Alabama Department of Insurance has issued/updated BULLETIN NO. 2023-02 – Medical Bill Factoring and Altering Medical Bills. Click here  to read BULLETIN NO. 2023-02.

Stephen W. Still, Esq. - BALCH & BINGHAM LLP, (205) 488-5512 , sstill@balch.com

Category(s): Alabama - 05/24/2023

Governor Kay Ivey on Friday signed Executive Order 736,  establishing the Alabama Resilience Council. This action is a key part of the Ivey Administration’s ongoing effort to make Alabama the most resilient state in the nation by protecting the lives, property, and economic well-being of Alabamians against possible hazards, both natural and manmade.
The Alabama Resilience Council will work with local, state, federal and private partners to help communities build stronger, live safer and recover quicker. The work of the Council will be aimed at better preparing Alabama’s communities to withstand events that result in harmful societal impacts.
Alabama Insurance Commissioner Mark Fowler is co-chair of this newly established council. 
Click here  to read the full press release from The Office of Alabama Governor Kay Ivey. For more information on the Alabama Resilience Council, please click here. 

Stephen W. Still, Esq. - BALCH & BINGHAM LLP, (205) 488-5512 , sstill@balch.com

Category(s): Florida - 05/24/2023

Retiring Florida Supreme Court Justice Ricky Polston will take on a new role as General Counsel and Chief Legal Officer for Citizens Property Insurance Corporation. Citizens' Board of Governors unanimously approved the appointment of Justice Polston on Wednesday, just days after the media reported that he was in line to land with the state-created insurer after he officially resigns on March 31.

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

Category(s): Florida - 05/24/2023

Florida property insurers are preparing for another assessment on premiums to help the Florida Insurance Guaranty Association fund outstanding claims from an insolvent insurer. The 1% emergency assessment on all premium for new and renewing policies, approved in April by the state insurance commissioner, will be the fourth surcharge needed for FIGA in the last two years. The revenue must be forwarded to FIGA on a quarterly basis, the FLOIR said in its April 10 order.

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

Category(s): Georgia - 05/24/2023

On May 11, 2023, Commissioner John F. King issued Bulletin 23-EX-6 to inform all insurers that the Georgia Office of the Commissioner of Insurance has set the parameters for the 1332 Waiver Reinsurance Program Plan Year 2024:

• Attachment Point: $35,000 
• Cap: $500,000 (unchanged from PY 2023) 
• Co-insurance Rates (unchanged from PY 2023):

Tier 1: 15% (includes rating regions 2, 3, 5, 8, 14)
Tier 2: 45% (includes rating regions 1, 7, 9, 12, 16)
Tier 3: 80% (includes rating regions 4, 6, 10, 11, 13, 15)

Georgia’s Reinsurance Program will apply to all ACA-compliant, non-grandfathered individual market plans and will be a claims-based model with an attachment point, cap, and a tiered coinsurance rate. Georgia insurers should refer to The Centers for Medicare & Medicaid Services website for additional information regarding the Georgia Reinsurance Program.

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

Category(s): Georgia - 05/24/2023

On May 19, 2023, Commissioner John F. King issued Bulletin 23-EX-8 to inform all Pharmacies that the Department has recently been made aware of fraudulent audit notices being sent to some Georgia pharmacies. The fraudulent audit notices appear to be from “Express Scripts” and “CVS Caremark”. If a pharmacy believes it has received a fraudulent audit letter, it should immediately contact the Criminal Investigations Division at CID@oci.ga.gov.

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

Category(s): Georgia - 05/24/2023

On May 3, 2023, Governor Kemp signed legislation to reform certain private auto insurance rate filings in Georgia (HB 221).  Insurers writing personal private passenger motor vehicle insurance providing coverage above the mandatory minimum limits must now submit to the Commissioner rates, rating plans, rating systems and underwriting rules for such insurance.  These filings must have an effective date at least 60 days after the filing date unless an earlier effective date is authorized by the Commissioner.  However, these filings do not require the Commissioner’s “prior approval” before going into effect.  House Bill 221 did not alter the Commissioner’s current “prior approval” authority for insurers writing private passenger motor vehicle insurance providing mandatory minimum limits coverage only.  HB 221 will go into effect on July 1, 2023.

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

Category(s): Louisiana - 05/24/2023

Longtime Louisiana Insurance Commissioner Jim Donelon announced on March 14 that he will not be seeking re-election this fall. Donelon announced his decision during a press conference about the Insure Louisiana Incentive Program. The 78-year-old Republican noted that his age, and insurance industry demands on tap this upcoming legislative session were the two factors in his decision.

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

Category(s): NAIC - 05/24/2023

During the 2023 Spring National Meeting in Louisville, Kentucky, The National Association of Insurance Commissioners released its 2022 Annual Report. The report, titled “Conquering the New Normal Together,” shares how the NAIC successfully overcame pandemic-era challenges to further its state-based agenda. In 2022, the NAIC enhanced connectivity among its staff and Members, leaned forward on emerging issues, accelerated investments in technology, and rallied its internal team. The report details accomplishments in these areas.

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

Category(s): New York - 05/24/2023

On April 17, 2023, New York Superintendent of Financial Services Adrienne A. Harris announced today that the New York State Department of Financial Services (DFS) has adopted a final regulation establishing how companies holding a DFS-issued BitLicense will be assessed for costs of their supervision and examination.
A copy of the adopted regulation can be found here  on the DFS website. 
The adopted regulation effectuates a provision in the New York State FY23 Budget giving DFS new authority to collect supervisory costs from licensed virtual currency businesses, similar to other licensees regulated by DFS. This regulation will allow the Department to continue adding top talent to its virtual currency team to continue efficient and effective regulatory oversight.
DFS’s virtual currency regulatory framework is modeled after full-scope banking supervision, requiring companies to meet rigorous standards for capitalization, cybersecurity protection, and anti-money laundering protocols, among other requirements.  
Prior to adoption, DFS conducted in-depth research and met extensively with key stakeholders to inform the regulation which applies to entities holding a BitLicense. The Department received constructive feedback which informed the regulation.  At the time that DFS’s first-in-the-nation virtual currency regulation was adopted in 2015, the Financial Services Law (FSL) did not include a provision for the assessment of operating costs, unlike provisions provided in Banking and Insurance Law for licensed entities. Entities licensed as a limited purpose trust company or a banking organization will continue to be assessed under existing laws and regulations. 
This regulation only applies to Licensees, and the assessment only covers the costs and expenses associated with the Department’s oversight of each person’s virtual currency business activities. Accordingly, to the extent that a person is licensed to engage in virtual currency business activities under the FSL, and concurrently as a money transmitter pursuant to Article XIII-B of the Banking Law, such person will be billed separately for each license. To the extent that a person holds multiple licenses to engage in virtual currency business activities pursuant to 23 NYCRR Part 200, such person will be billed separately for each license.

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