Category(s): National - 09/21/2023

On August 12, state insurance regulators voted to adopt a key rule change on how insurers report interest rate-related losses. Several industry trade groups lobbied for the rule change, which seeks free up hundreds of millions of dollars that insurers can use to write new policies or reinvest in business innovation. The change concerns the interest maintenance reserve (IMR), an accounting standard that helps carriers smooth their annual income across market conditions.

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

Category(s): Alabama - 09/26/2023

From the ALDOI: The National Association of Insurance Commissioners (NAIC) and the Insurance Institute for Business and Home Safety (IBHS) have entered into a memorandum of understanding (MOU) that provides state insurance regulators access to IBHS member-only content and additional opportunities to collaborate on select topics concerning disaster preparedness. Click here  to read the full article on the Alabama Department of Insurance website.

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

Category(s): Florida - 09/23/2023

The Florida Office of Insurance Regulation (OIR) has issued an Emergency Rule regarding claims-handling manuals requirements for residential property insurers. The new requirements are from the of CS/SB 7052 provisions relating to Insurer Accountability passed during the 2023 Regular Legislative Session and signed into law by Governor Ron DeSantis on June 1, 2023.

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

Category(s): Florida - 09/23/2023

Stakeholders near and far are hailing a near-record number of takeouts from Citizens’ Property Insurance Corp. as a sign that the troubled Florida insurance market is improving. Altogether, 184,000 policies could be removed from Citizens, the state-created insurer of last resort that has ballooned to become Florida’s largest property insurer, with more than 1.3 million policies in force this year. The insurance companies assuming these new policies and working with Citizens to assist with depopulation include Slide Insurance Company which will assume 100,000 policies; SafePoint Insurance Company, with 30,000, and Southern Oak Insurance Company, with 25,000.

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

Category(s): Georgia - 09/23/2023

On August 1, 2023, Commissioner John F. King issued Directive 23-EX-4 to inform that effective August 1st, 2023, Pet Insurance is included in the types of insurance eligible to be sold by agents holding Life, Accident and Sickness, Property and Casualty, or Personal Lines licenses. 
Companies holding or wishing to offer Pet Insurance within the lines of Life, Accident and Sickness, or Property and Casualty can submit their insurance products for approval.

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

Category(s): Georgia - 09/29/2023

On July 13, 2023, the U.S. Court of Appeals for the Eleventh Circuit issued a matter of first impression ruling in Continental Casualty Co. and Valley Forge Ins. Co. v. Winder Laboratories, LLC that an insurer is not entitled under Georgia law, absent a contractual clause allowing for recoupment of defense costs, to recoup such costs it advanced under a reservation of rights letter before a determination that it owed no duty to defend its insured.

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

Category(s): Georgia - 09/29/2023

In Pierce v. Banks,  2023 A23A0394 (Ga Ct. App. June 28, 2023), the Georgia Court of Appeals reversed a trial court order denying plaintiff’s partial motion for summary judgment and granting a cross-motion to enforce a settlement in favor of the defendant. The primary question at issue was whether a binding presuit settlement agreement existed between the parties under Georgia’s presuit demand statute (O.C.G.A. § 9-11-67.1). The plaintiff was involved in an auto accident with the defendant, and following the accident, the plaintiff made a written presuit offer for his personal injury claim to the defendant’s insurer. The offer letter required payment of the bodily injury policy’s limit and prescribed that the insurer must accept the offer in writing within 31 days and further required that the following conditions must be met: (a) the settlement payment check must be made payable jointly to plaintiff and his law firm, (b) payment had to be received 15 days after the insurer’s written acceptance and (c) the insurer’s settlement payment could not include any terms, conditions, descriptions, expirations or restrictions that were not expressly allowed in the offer. The offer letter also cautioned that “this offer must be accepted exactly as stated” and that “any variance at all from any terms or conditions of acceptance or any variance at all from the quoted language above, even if accidental, will be a rejection of this offer.” Before the end of the offer’s 15-day acceptance period, the insurer sent a letter accepting the offer, which enclosed a settlement payment check including a notation that it was “void after 180 days.” In response, the plaintiff timely rejected the settlement check as a counteroffer, asserting that the insurer’s acceptance was not identical to the plaintiff’s offer. The appellate court determined that the trial court erred in granting the defendant’s motion to enforce the settlement agreement because an acceptance by act must be “identical” and “without variance of any sort,” notwithstanding the defendant’s early delivery of its settlement payment check before the 15th day.

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

Category(s): Georgia - 09/23/2023

On August 4, 2023, Commissioner John F. King issued a press release to inform that, as of August 1, 2023, Friday Health Plans of Georgia, Inc. was placed in liquidation. The Department has created a special open enrollment period on the Georgia Health Insurance Marketplace until September 29, 2023. Click here  to view the FAQs and the liquidation documents.

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

Category(s): Illinois - 09/23/2023

On June 9, 2023, Governor J.B. Pritzker approved and signed legislation in Illinois that adds it to the small number of states that have enacted insurance business transfer (“IBT”) frameworks. Previously, Illinois had created a division mechanism. Public Act 103-0075  establishes the rules and requirements for a successful IBT in Illinois. The new law is effective January 1, 2025.

Daniel A. Cotter, Esq. - Dickinson Wright PLLC, (312) 423-8170 , DCotter@dickinson-wright.com

Category(s): NAIC - 09/21/2023

On August 16, members of the National Association of Insurance Commissioners (NAIC) voted to adopt a change to the Life Risk-Based Capital (RBC) formula under RBC Blanks proposals 2023-09-IRE and 2023-10-IRE at the 2023 NAIC Summer National Meeting. The change will require residual tranches, and only residual tranches, of structured securities to receive a 30% factor for year-end 2023 RBC filings and a 45% factor for year-end 2024 RBC filings.

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