Category(s): California - 09/29/2024

From the August 2024 Insurance Regulatory Report, California Lawyers Association - On August 16, 2024, the CDI published its annual Year End Notice  setting deadlines for filings requesting year end treatment. The deadlines are October 14, 2024 for Holding Company Act filing and September 16, 2024 for all other filings.

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

Category(s): California - 09/30/2024

On August 9, 2024, the CDI published a Bulletin title “Revisions to Department Review of Complete Rate Applications”  which sets forth the process the CDI will follow with respect to review of rate applications “once full implementation of a data reconciliation tool and process is achieved” that would streamline timeframes for rate review.

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

Category(s): Florida - 09/29/2024

Citizens Property Insurance Corporation is purchasing $3.56 billion in reinsurance for the 2024 hurricane season, giving Citizens the financial resources to pay claims following a 1-in-83-year hurricane without having to levy an assessment on most Florida insurance consumers. Speaking to the Citizens Board of Governors on July 10, Citizens’ Chief Financial Officer Jennifer Montero said Citizens secured the coverage for $482 million. Combined with Citizens’ surplus and coverage from the Florida Hurricane Catastrophe Fund, Citizens has $14.4 billion in claims-paying ability. Citizens Secures Reinsurance Coverage for 2024 Hurricane Season, Citizens Property Insurance Corporation (Jul. 10, 2024), click here  to read more.

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

Category(s): Florida - 09/30/2024

On August 8, the OIR held a rule workshop on the permanent rule relating to property insurance premium discounts for the premium tax and state fire marshal assessment. The permanent rule will replace the emergency rule that went into effect the first part of July. The emergency rule can only be in effect for six months, which is why a permanent rule must be adopted. Click here  to read more, must be a member of the Florida Insurance Council (FIC) to access.

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

Category(s): Florida - 09/30/2024

On August 23, NCCI recommended a 1% overall rate decrease for workers’ comp in 2025 and submitted the rate filing to the OIR. If the 1% rate decrease is approved, comp rates will have declined 78% since the last major legislative reform in October 2003. Even though the overall rate decrease is 1%, some class codes will see greater decreases, and some have an increase. Click here  to read more.

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

Category(s): Georgia - 09/29/2024

On June 27, 2024, the Georgia Insurance Commissioner issued a new directive—Directive 24-EX-3 —relating assessments made against insurance companies for funding the costs of the Special Insurance Fraud Fund for the purpose of funding the investigation and prosecution of insurance fraud. Each foreign, alien, and domestic insurance company transacting business in Georgia is subject to an annual assessment under a formula established by regulation of the Georgia Insurance Commissioner. The formula is calculated such that the total proceeds paid or collected from such assessments for any year do not exceed the amounts appropriated by the Georgia General Assembly based upon the budget request setting forth the annual cost and expense of the investigation and prosecution of insurance fraud in Georgia submitted by the Commissioner. According to the new directive, because the growth of the number of companies providing insurance in Georgia, the current regulations promulgated at Ga. Comp. R. & Regs. r. 120-2-72-.01 et seq., would be in conflict with the statutory provisions of O.C.G.A. § 33-1-17 regarding the prohibition on the current assessment rates exceeding the amount appropriated by the General Assembly, and therefore, the assessments established in Ga. Comp. R. & Regs. r. 120-2-72-.05 (1)(b), (c), (e), and (f) are hereby suspended and replaced with the following assessments:
Regulation
Ga. Comp. R. & Regs. r. 120-2-72-.05(1)(b), Percent assessed of Appropriated Amount - 0.0033
Ga. Comp. R. & Regs. r. 120-2-72-.05(1)(c), Percent assessed of Appropriated Amount - 0.0043
Ga. Comp. R. & Regs. r. 120-2-72-.05(1)(e), Percent assessed of Appropriated Amount - 0.0053
Ga. Comp. R. & Regs. r. 120-2-72-.05(1)(f), Percent assessed of Appropriated Amount - 0.0063

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

Category(s): Georgia - 09/29/2024

In a July 2024 decision, the Georgia Court of Appeals recently held  that the Georgia Insurers Insolvency Pool (a/k/a Property and Casualty Insurance Guaranty Association) could not seek reimbursement for worker’s compensation claims it paid for workplace injuries sustained by a worker employed by a temporary staffing company while assigned to the staffing company’s business customer. because of the insolvency of the staffing company’s worker’s compensation insurer from the business customer’s solvent workers’ compensation insurer. Because the business customer of the staffing company did not have sufficient control over the workers assigned to it by the staffing company and the business customer of the staffing company was not the statutory employer of the workers assigned to it by the staffing company. Additionally, the insolvency of the staffing company’s workers’ compensation insurer did not transform the workers’ compensation claim.

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

Category(s): Georgia - 09/29/2024

On August 14, 2024, the Georgia Insurance Commissioner announced that the Centers for Medicare and Medicaid Services (CMS) approved Georgia’s transition to a state-based health insurance exchange, known as Georgia Access. Georgia Access will go live on November 1, 2024, when the 2025 plan year open enrollment period starts. Georgia Access to Launch as State-based Exchange in November, Office of Commissioner of Insurance and Safety Fire (Aug. 14, 2024), click here  to read more.

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

Category(s): Illinois - 09/29/2024

The Illinois Insurance Department adopted a new administrative rule Part titled Illinois Health Benefits Exchange (50 IAC 4500) effective 8/1/24, and also adopted amendments to the Part titled Navigator, In-Person Counselor and Certified Application Counselor Certification (50 IAC 4515) effective 8/1/24, both implementing Public Act 103-103. The Act and these rulemakings will transition the state's Affordable Care Act health insurance exchange to a state-based health insurance exchange on a federal platform by 2025 and a fully state-based exchange by 2026.

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

Category(s): NAIC - 09/27/2024

The NAIC Financial Regulation Standards and Accreditation (F) Committee voted to accredit the insurance departments in Florida, Georgia, Montana, Pennsylvania, and Utah. Accredited insurance departments undergo a comprehensive, independent review every five years to ensure they meet financial solvency oversight standards. The committee made the announcement during the NAIC’s 2024 Summer National Meeting. Five States Re-Accredited During NAIC’s 2024 Summer National Meeting, NAIC (Aug. 13, 2024), click here  to read more.

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