Alert Edition September 2024

Welcome to the September 2024 edition of the FORC Alert. If you have any colleagues that may be interested in this publication, please forward it on. There is a link on the Alerts main page where they can subscribe to receive FORC Alerts automatically.

Regards,
C. Ignacio Matos, Esq., FORC Alert Co-Editor
Ryan Smart, Esq., FORC Alert Co-Editor
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Category(s): National - 09/29/2024

SEC Adopts Tailored Registration Form for Offerings of Registered Index-Linked and Registered Market-Value Adjustment Annuities

On July 1, the Securities and Exchange Commission adopted tailored disclosure requirements and offering processes for offerings of registered index-linked annuities (RILAs) and registered market value adjustment annuities (registered MVA annuities, and collectively with RILAs, non-variable annuities). The final rule will require issuers of non-variable annuities to register offerings on Form N-4, the form currently used to register offerings of most variable annuities. SEC Adopts Tailored Registration Form for Offerings of Registered Index-Linked and Registered Market-Value Adjustment Annuities, U.S. Securities and Exchange Commission (Jul. 1, 2024), click here  to read more.

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

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

2024 Year End Notice

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 - 09/29/2024

Proposed Catastrophe Modeling and Ratemaking Regulations

From the August 2024 Insurance Regulatory Report, California Lawyers Association - On August 16, 2024, the CDI issued an Initial Statement of Reasons  and Notice of Proposed Action and Notice of Public Hearing  with respect to Proposed Regulations (REG-2023-00010)  that would enable insurers who write increased amounts of homeowners policies in high-risk areas to use catastrophe modeling in calculating property and casualty insurance rates.  A virtual public hearing on the regulations is scheduled for 10:00 a.m. on September 17, 2024, with public comments due on that date.

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

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

Rate Application Process

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 - 09/30/2024

FHCF Reimbursement Contract For 2025-2026 Released

The 2025-2026 reimbursement contract for the Florida Hurricane Catastrophe  Fund (FHCF) is out for insurers to review and the rulemaking process has begun to adopt the new contract by rule. The contract must be adopted by rule by February 1, 2025. Most of the changes to the contract are technical or clarifying. Click here  to read more.

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

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

Florida Citizens Secures Reinsurance Coverage for 2024 Hurricane Season

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 - 09/29/2024

Insurance Agencies in Two Counties can be a Tag Agency Under Bill Approved by Legislature

Governor Ron DeSantis signed the highway safety package, SB 736,  into law on June 28, 2024. One part of the bill allows insurance agencies to act as tag agencies in two counties and takes effect on July 1, 2025. Under the bill, general line insurance agencies in Miami-Dade and Broward Counties holding an appointment by an insurer for motor vehicle insurance can essentially act as a tag agency and issue motor vehicle and mobile home tags, titles, and registrations.

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

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

Insurers Pose Questions to OIR About Premium Discounts For Premium Tax and Fire Marshal Assessment

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 - 09/29/2024

State Group Health Plan and Medicaid Coverage for Biomarker Testing Becomes Law

On June 18, Governor Ron DeSantis signed tHB 885  into law. The bill requires biomarker testing for diagnosis, treatment, management or monitoring of a medical disease or condition is be covered by the state group health plans and Medicaid. Biomarker testing for screening does not have to be covered. The state group must cover biomarker testing starting January 1, 2025.

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

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

Workers’ Comp Rate Decrease of 1% Proposed By NCCI

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 - 09/30/2024

Former Georgia Insurance Commissioner Sentenced for Guilty Plea to Conspiracy to Commit Health Care Fraud

On July 12, 2024, former Georgia Insurance Commissioner John Oxendine, who served 16 years in that role, received the sentence for his March 2024 guilty plea to one count of conspiracy to commit health care fraud under a federal criminal statute as the result of a May 2022 indictment that alleged he assisted a physician to receive tens of thousands of dollars in kickbacks from medically unnecessary patient medical lab tests. He received a sentence of 42 months in a federal prison. Click here  to read more.

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

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

Georgia Insurance Commissioner’s Directive 24-EX-3 (Special Insurance Fraud Unit Assessments)

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 - 09/30/2024

Georgia Insurance Commissioner’s Directive 24-EX-4 (Data Call for Tort Reform)

On July 18, 2024, the Georgia Office of Commissioner of Insurance and Safety Fire (the Department) issued a second “Georgia Tort Reform Act (HB 1114) Data Call Frequently Asked Questions (FAQ) ”. The FAQs published by the Department on July 18, 2024, are in addition to those it published on July 12, 2024. Click here  to request bulletin.

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

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

Georgia Insurers Insolvency Pool Cannot Recover from Employer or Employer’s Solvent Worker’s Compensation Insurer for Claims Paid Because of Temporary Staffing Company’s Insolvent Workers’ Compensation Insurer

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 - 09/30/2024

Georgia Loses its Battle with DHHS/CMS Over End Date for “Pathways to Coverage” Medicaid Expansion Program

In a long-running dispute between the State of Georgia and the Centers for Medicare and Medicaid Services (CMS) over the implementation of Georgia’s Section 1115 Waiver for a Medicaid expansion program known as Pathways to Coverage, on July 15, 2024, the Southern District of Court Georgia granted summary judgement to CMS in the state’s attempt to extend the five year program’s original 2025 end date until 2028 because of the two-year delay of the original start date from July 2021 to July 2023. The dispute originally started when the state sued CMS in in January 2022 in response to CMS’s December 2021 purported unilateral decision to rescind its approval of the program. In August 2022, the court granted summary judgment to Georgia, vacating CMS’s rescission. Georgia’s Pathways to Coverage began enrollments in July 2023 but will operate only until July 2025, effectively making its operational period only two years rather than five years. Click here  to read more.

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

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

Georgia to Launch State-Based Health Insurance Exchange in November 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

Bulletins Issued by the Illinois Insurance Department

In August 2024, the Illinois Insurance Department issued two bulletins. Company Bulletin 2024-15 addresses Short-Term Limited Duration Insurance (STLDI) and Non-coordinated Fixed Indemnity Excepted Benefits coverage under federal rule and Illinois law. Company Bulletin 2024-16 provides notification of recent changes to the Department’s regulations on public adjusters and to provide clear guidance on how public adjusters can demonstrate compliance with Illinois’ public adjuster regulations.

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

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

The Illinois Insurance Department Adopts New Administrative Rule Part Titled Illinois Health Benefits Exchange (50 IAC 4500)

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): Maryland - 09/30/2024

New Maryland Insurance Commissioner Named

Following Commissioner Kathleen Birrane’s return to private practice, Governor Wes Moore has named Marie Grant as the new Insurance Commissioner effective October 1, 2024. Marie is an attorney with a more than 20 years of experience in both state and federal health policy in both the public and private sectors. From her days as committee counsel to a House and Senate Committee in Annapolis to her time at Carefirst as VP of Public Policy to her most recent role as Assistant Secretary for health policy at the Department of Health, her varied experiences and ability to learn complex issues quickly will enable her to step in where Birrane left off while putting her own imprint on the Maryland Insurance Administration. Grant holds a B.A. in public health from the Johns Hopkins University and J.D. from Georgetown University Law Center. Click here  to read more.

Brett S. Lininger, Esq. - THE CAPITAL LAW FIRM, P.A., (443) 321-9988 , brett@kresshammen.com

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

Five States Re-Accredited During NAIC’s 2024 Summer National Meeting

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

Recent Editions

Alerts for September 2024

Posted on 9/27/2024

Alerts for July 2024

Posted on 7/29/2024

Alerts for May 2024

Posted on 5/29/2024

Alerts for March 2024

Posted on 3/18/2024

Alerts for January 2024

Posted on 1/30/2024