Category(s): Arizona - 03/18/2024

The Arizona Department of Insurance and Financial Institutions (DIFI) recently imposed a $300,000 fine, with $150,000 suspended upon completion of a corrective action plan, related to the insurers’ use of bankruptcies and liens in rating in violation of A.R.S. § 20-2110(F)(3). The report concluded that while the carrier properly excluded bankruptcies and liens that were more than seven years old when rating at policy inception, DIFI requires insurers to develop a process to identify and track adverse credit factors at policy inception and at renewal and to disregard those adverse factors or re-rate the insured once the adverse credit factors age out.

Jennifer L. Kraham, Esq. - KUTAK ROCK LLP, (480) 429-4835 , Jennifer.Kraham@kutakrock.com

Category(s): Florida - 03/18/2024

SB 7016, the Senate Live Healthy package, a priority of Senate President Passidomo, went to the Governor on February 22, 2024 when the House passed the Senate bill with a vote of 117-1. We expect the Governor will sign the bill when he receives it. This bill has two parts: a Health Innovation Council and a loan program to help fund innovations. The bill is designed to grow Florida’s healthcare workforce and increase access to health care.

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

Category(s): Florida - 03/18/2024

Current law relating to residential property coverage for family day care homes is extended to large family childcare homes under bills moving in the Legislature this year. The home day care property insurance issue is contained in a larger bill dealing with tax exemptions for preschools, childcare tax credits, and child care provider licensing. The goal of the bill is to incentivize more day care options at more affordable prices. Click here  to read House Amendment 829371, Bill No. CS/CS/B 1611 (2024).

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

Category(s): Georgia - 03/18/2024

The Official Code of Georgia (“O.C.G.A.”) § 33-1-27(c)(1)(A) requires compliance with the Georgia Mental Health Parity and Addiction Equity Act for health insurers offering coverage for mental health or substance use disorders as part of a health care plan. Insurers subject to O.C.G.A. § 33-1-27(c)(1)(A) are required to submit data on mental health parity on an annual basis to the Office of the Commissioner of Insurance (“OCI”).
Pursuant to the O.C.G.A. § 33-24-59.10 Coverage for autism, every “accident and sickness contract, policy, or benefit plan,” as defined by O.C.G.A. § 33-24-59.1 (Health Plan) and not otherwise exempt per O.C.G.A. §§ 33-24-59.10(e) and 33-24-59.10(g) that is issued or renewed in Georgia shall provide treatment for Autism Spectrum Disorder (ASD) and, under O.C.G.A. § 33-24-59.10(i), shall provide the OCI with all data requested by the OCI for inclusion in the annual report.
The OCI has contracted with Regulatory Insurance Advisors, LLC (“RIA”) to facilitate the collection and analysis of mental health parity data, which includes ASD.

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

Category(s): Georgia - 03/18/2024

On February 27, 2024, Commissioner John F. King issued Directive 24-EX-2 to remind “[a]ll insurers offering plans on the Georgia Access marketplace that they are required to remit the required user fee to the GA Access Division by using the Sircon portal. Any late payment of the user fee will be assessed interest on the principal amount at the rate of 1 percent per month, or any part of a month, from the date due until the date paid.”

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

Category(s): Georgia - 03/18/2024

In Georgia, a Holt Demand is an insured’s settlement offer made to its insurer for an amount within an insurance policy’s limits of liability. A 1992 case, Southern General Insurance Company v. Holt, established that, if an insurer refuses to accept such a settlement, it may be liable to the insured for the full amount of an excess judgment rendered against the insured. For auto insurance, the Holt case is codified in O.C.G.A. § 9-11-67.1 Recently, in Patrick v. Kingston, 2024 WL 566609 (Ga. App. Feb. 13, 2024), the Georgia Court of Appeals found that an insurer did not properly accept the claimant’s settlement offer. The claimant’s counsel sent a Holt demand to the insurer with various terms and conditions of settlement.  The insurer sent a response letter stating it accepted the demand “unconditionally, unequivocally, and without variance of any sort.”  But, the insurer’s settlement check stated it was “void if not presented within 90 days,” a term which the Holt demand did not contain.  The court found the insurer had varied “even one term” of the Holt demand and had therefore rejected it.

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

Category(s): Georgia - 03/18/2024

In an ongoing dispute between Georgia and the Centers for Medicare and Medicaid Services (CMS), the state filed suit on February 2, 2024, seeking to force CMS to honor its original five-year operational approval of Georgia’s Section 1115 Waiver for a Medicaid expansion program known as Pathways to Coverage. A unique feature of the program is that applicants must complete a minimum of 80 hours of qualifying activities per month to maintain eligibility for benefits. In October 2020, CMS approved the program, which was to have been implemented on July 1, 2021, and would have ended in 2025. In December 2021, CMS purported unilaterally to rescind its approval, which prompted a lawsuit by Georgia against CMS in January 2022. In August 2022, the Southern District Court of Georgia granted summary judgment to Georgia, vacating CMS’s rescission. Georgia’s Pathways to Coverage began enrollments in July 2023. After having appropriated $65,450,836 to cover benefits for projected enrollment for the first year of the program and spent much time and money fighting CMS, delaying implementation of the program, the state now seeks to revise the program’s end date to be on September 30, 2028.

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

Category(s): Illinois - 03/18/2024

Per this bulletin, beginning in 2024 Farm Mutuals must submit to the Illinois Insurance Department electronic annual statements in Excel Workbook format. Click here  to read Company Bulletin 2024-2 Farm Mutual Notice Requirement.

Steve W. Kinion, Esq. - ZACK STAMP, LTD, (217) 525-0700 x108 , skinion@601w.com

Category(s): Missouri - 03/18/2024

According to the Missouri Department of Commerce and Industry, the Missouri Captive Insurance Industry increased its gross written premium by 142% in 2023. Gross written premium in 2022 was $3.5 billion while in 2023, gross written premium grew to $8.6 billion. The growth is attributed to the quality and strength of the companies in Missouri as well as the department’s dedicated Captive Insurance Program staff. Click here  to read more on the Missouri Department of Commerce & Insurance website.

Sherry Doctorian, Esq. - Armstrong Teasdale LLP, (573) 634-7149 , sdoctorian@atllp.com

Category(s): NAIC - 03/18/2024

On February 13, the National Association of Insurance Commissioners (NAIC) announced its 2024 strategic priorities. According to the NAIC’s press release “NAIC Members annually finalize the priorities and discuss potential workplans after assigning committee responsibilities.” “The NAIC's regulatory priorities for 2024 reflect our commitment to pursuing innovative and effective solutions to the most pressing issues affecting consumers, the insurance sector, and markets," said NAIC President and Connecticut Insurance Commissioner Andrew N. Mais. Click here  to read the news release from NAIC.

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