Topic: Regulatory

NAIC Co-Hosts Webinar on Wearable Devices

On Monday, November 13, the National Association of Insurance Commissioners, in conjunction with the Center for Insurance Policy and Research and The Griffith Insurance Education Foundation, presented a webinar entitled “Wearables and their Insurance Implications.” The webinar covered a broad range of developments in the wearable space, as well as implications – both positive and negative – that may result from the proliferation of wearable devices.

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NAIC Working Group Exposes Proposed Revisions to Life and Health Guaranty Association Model Act

On October 27, the NAIC Model Law (E) Working Group released an exposure draft of its proposed revisions to the Life and Health Guaranty Association Model Act (#520), intended to address the financial challenges of Long Term Care (“LTC”) insurance insolvencies, such as this year’s Penn Treaty liquidation, and to bring health maintenance organizations (“HMOs”) within the Guaranty Associations’ protection and assessment base.

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White House Issues Memorandum Announcing UAS/Drone Integration Pilot Program

On October 25, 2017, the White House issued its previously-rumored Presidential Memorandum (“Memorandum”) calling for the establishment of a UAS Integration Pilot Program (“Program”) to test the further integration of Unmanned Aircraft Systems (“UAS” or “drones”) into the national airspace system (“NAS”) in a select number of State, local and tribal jurisdictions. 

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New Insurance Platforms Arguably Require Producer Licenses

New York Associate Zachary Lerner authored a Law360 article on commission sharing, referral fee and producer licensing issues.  Within the article, Mr. Lerner identifies important issues for insurers and producers to consider, both in the admitted and surplus lines insurance markets, with respect to the sharing of commissions and whether proper licenses should be obtained in light of the NAIC’s recent comments regarding Lemonade Insurance Company’s application-based platform. The complete Law360 article is available here (subscription may be...

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Trump Administration Issues Executive Order Regarding Health Coverage and Discontinues Cost-Sharing Reductions Payments

On October 12, 2017, President Donald Trump signed an Executive Order “to reform the United States healthcare system to take the first steps to expand choices and alternatives to Obamacare plans and increase competition to bring down costs for consumers.

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The Pruco Florida Supreme Court decision has been legislatively reversed by a recent amendment to the Florida Viatical Settlement Act

The Florida Supreme Court Pruco advisory opinion, Wells Fargo Bank, N.A. v. Pruco Life Ins. Co., 200 So. 3d at 1203 & 1206-07, to the United States Eleventh Circuit Court of Appeals held that an insurer may not challenge the validity of a Florida life insurance policy, even on lack of insurable interest under Section 627.404 or STOLI grounds, after the expiration of Florida’s two-year contestability period provided in Section 627.455 – Florida Statutes. In Pruco the Florida Supreme Court determined that the policies at issue were stranger initiated life insurance policies (STOLI) policies that nevertheless satisfied the Florida insurable interest statute.  “Accordingly, under the plain language of [the two-year contestability period statute] a policy that has the required insurable interest at its inception, even where the interest is created as a result of a STOLI scheme, is incontestable after two years.”  The Supreme Court continued to say that even though it “might be wise public policy [to remove the two-year bar], that decision is for the Florida Legislature, not this Court”. At the time of the Pruco decision, Florida statutory law did not define a STOLI scheme or practice.  However, in the recent amendment to the Florida Viatical Settlement Act, STOLI practices are now defined. See Section 626.99289. In the legislative final bill analysis, the writer for the Florida House of Representatives wrote, “In response to the Pruco...

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New Notice Requirement for Insurers under Florida’s Viatical Settlement Act

Florida has recently adopted amendments to its Viatical Settlement Act. One of the new provisions, Section 626.99292 Notice to life insurance policyholders, provides: “(1) A life insurer shall provide an individual life insurance policyholder with a statement informing him or her that if he or she is considering making changes in the status of his or her policy, he or she should consult with a licensed insurance or financial advisor.  The statement may accompany or be included in notices or mailings otherwise provided to the policyholder. “(2) The statement must also advise the policyholder that he or she may contact the department for more information and include a website address or other location or manner by which the policyholder may contact the department.” The following may represent unresolved issues with respect to this required notice provision: Individuals – Not life insurance trust, family limited partnerships, family limited liability companies, business  entities, etc.? Policyholder – Who is the policyholder of a group life insurance policy for purposes of this notice requirement?  Typically the group policyholder is not an individual, although there are individual life insurance certificate holders. ‘a statement’; ‘The statement’  – One statement required and only one?  Although the language seems clear on its face that only one notice should be required, some analysts of the provision have suggested that there is some ambiguity with the number of times...

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