Category(s): National - 01/29/2025

On November 13, 2024, the Office of Foreign Assets Control (OFAC),  an enforcement agency within the United States Treasury Department, revised its FAQs directed to the insurance industry. The new and amended FAQs clarify the scope and jurisdiction of certain OFAC regulations and elaborate upon OFAC's existing guidance pertaining to insurers in certain specific sanctions-related scenarios. Click here  to read more.

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

Category(s): Georgia - 01/29/2025

In Progressive Mountain Insurance Company v. Vining (Case No. A24A1023, October 28, 2024), the Georgia Court of Appeals held that the trial court erred in not finding that an insured’s 11 month delay in notifying its auto insurer of an injury sustained in an auto accident would preclude coverage, absent reasonable justification for such delay. The trial court denied the insurer’s motion for summary judgment, relying on the policy’s language that stated “[n]o claim shall be denied due to your failure to notify us within 30 days of an accident or loss if we receive written notice, by U.S. mail, from an injured person.” But, the appellate court found that the policy’s claims notice clause providing that "[f]or coverage to apply under this policy, you or the person seeking coverage must promptly report each accident or loss even if you or the person seeking coverage is not at fault”, would be completely nullified if the former clause were interpreted to override the prompt reporting clause and therefore remanded the case to allow the trial court to determine whether the insured could offer any reasonable justification for the claim reporting delay. Click here  to read more.

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

Category(s): Georgia - 01/29/2025

On November 1, 2024, the Georgia Insurance Commissioner delivered the Commissioner’s Data Analysis for Tort Reform Act report to the state’s Governor, the House Insurance Committee Chairman, and the Senate Insurance and Labor Committee Chairman. Georgia House Bill 1114, which became effective in April 2024, required the Georgia Insurance Department to collect insurance claims and related data from insurers doing business in the state and analyze that data for the purpose of making recommendations to the Georgia Assembly for legislative lever options to improve the efficiency of the insurance industry and reduce litigation friction. Some of the recommended reforms include (i) caps on non-economic and punitive damages, (ii) required litigation funding disclosures, (iii) requiring medical bills to reflect actual amounts billed, not inflated billed amounts and (iv) providing insurers with additional protections against bad faith claims, such as time-limited settlement demands reformation. Click here  to read more.

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

Category(s): Georgia - 01/29/2025

In Travelers Property Casualty Ins. Co. v. Lispey (Case No. 24A1114, November 1, 2024), the Georgia Court of Appeals reversed the trial court’s denial of the insurer’s summary Judgment motion in response to an insured’s demand for uninsured motorist coverage arising out of an injury the insured suffered from having been shot while sitting in her insured vehicle by an unknown person from another vehicle, finding that the insured failed to prove any causal connection between use of the uninsured vehicle and the insured’s injury. The appellate court held that there was insufficient evidence to show the insured’s injury arose from the use of the uninsured vehicle as required by the insurance policy and that such use was integral to the injury, even though the shooting occurred from another vehicle, because a firearm caused the injury. Click here  to read more.

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

Category(s): Washington - 01/29/2025

Attorney and Washington State Senator Patty Kuderer  has been elected  as Insurance Commissioner for the State of Washington. Commissioner Kuderer was elected as the 9th Insurance Commissioner in Washington State and succeeds Commissioner Kreidler. 

Steven Beeghly, Esq. - BEEGHLY RICOY LAW GROUP, (206) 618-6110 , sb@BeeghlyRicoy.com

Category(s): Washington - 01/29/2025

The Washington State Supreme Court held  that a health insurer’s affiliated Pharmacy Benefit Manager would not be liable for additional taxes, as the services provided are “functionally related” to the underlying insurance contract, and these are included in the tax on gross premiums remitted by the insurer to the State of Washington.  The Supreme Court determined that the Pharmacy Benefit Manager was not liable for additional state Business & Occupation Tax, instead holding that the insurance gross premium tax exempted the contracted and affiliated pharmacy benefit manager from further tax obligations to the State of Washington, beyond the premium tax paid by the insurer. Cite as Envolve Pharmacy Sols., Inc. v. Dep’t of Revenue, Washington State Supreme Court Case Number 101,845-2 (Opinion issued 12/12/2024) (En Banc).

Steven Beeghly, Esq. - BEEGHLY RICOY LAW GROUP, (206) 618-6110 , sb@BeeghlyRicoy.com