Perry Cone published in Florida Bar Journal

The Florida Bar Journal has published Perry Cone's book review of an insurance treatise. In the Journal's December 2012 edition, Perry reviews Litigation and Prevention of Insurer Bad Faith, a two-volume comprehensive treatise by expert Dennis Wall.

As Perry concludes about Wall's work: "Litigation and Prevention of Insurer Bad Faith is a serious read and an essential legal resource. You may not want to take it on your vacation, but you will want to keep it on hand in your office to help you work through thorny legal issues."

The full review is available at these links: Litigation and Prevention of Insurer Bad Faith and The Florida Bar Journal, Dec. 2012 - Books (3rd review down).

This summary was prepared by Perry Cone and posted at TallyInsLaw.com.

Legal Notice and Disclaimer

OIR eases informational filing of P&C policy forms

Florida's Office of Insurance Regulation (OIR) has further simplified the use of P&C policy forms without prior review and approval by the OIR. Under an order issued December 3, 2012 and clarified this week and last, P&C forms may be used if the insurer makes an informational filing with OIR 30 days prior to use and has an authorized employee certify that the form complies with applicable Florida statutes and rules.

OIR's recent memos clarify that the OIR has eliminated the prior requirements for informational filings (in effect since June 24, 2012) that the insurer certify compliance with case law and that the certification be made by an executive officer of the insurer.

The December 3, 2012 order supersedes an OIR order issued in June 2012 that first authorized the use of informational filings for P&C policy forms (without prior approval). The December order is in effect until June 24, 2013 (the same expiration date as the superseded order). The order applies to all P&C forms excluding workers compensation.

To review the December order and clarifying memos, go to this link: OIR memos and December 3, 2012 order.

This summary was prepared by Perry Cone and posted at TallyInsLaw.com.

Legal Notice and Disclaimer

Two months to go: Florida PIP law 10 key changes for 2013 impact health care providers and insurers alike

Consider the 2012 PIP law changes from the perspective of health care providers treating auto injury patients in 2013. Some providers may see reduced payments. Massage therapists and acupuncturists are frozen out. Hospitals and most physician practice groups could actually benefit from limitations on other providers.

For insurers and health care providers alike, procedures will need to be modified. The effective date for most changes is January 1, 2013 - barely two months away. A summary of 10 key PIP law changes is presented below.

Compliance lapse comes at a high cost - FHCF

There was a big message in the $1.6 million in fines worked out with the Cat Fund for seemingly innocuous compliance lapses. Each of four homeowners insurance companies will be paying a $400,000 average fine to be released from its obligation to pay as much as $4 million to purchase TICL (Temporary Increase in Coverage Limit) optional reinsurance from the Florida Hurricane Catastrophe Fund (Cat Fund).

There was no injury to policyholders, as the companies had purchased coverage in the private reinsurance market in lieu of the TICL coverage, out of concern that the Cat Fund would not have resources to cover its TICL obligations. Fines were imposed because the four companies missed June deadlines for opting out of the TICL coverage (which the companies has selected earlier).

In dueling public statements reported yesterday, one carrier called the Cat Fund's actions "unconscionable," while the Cat Fund said that it was the companies' own fault and that the Cat Fund needed to set a precedent for future years. See 4 companies to pay $1.6 million in fines to get out of optional reinsurance coverage (Gray Rohrer, Florida Current, Sept. 27, 2012), which first reported the settlement between the carriers and the Cat Fund.

This summary was prepared by Perry Cone and posted at TallyInsLaw.com.

Legal Notice and Disclaimer

Insurance resources posted for September & August

Just in case you haven’t kept up ... new reports and presentations for September and August are posted on the "2012 Resource Library" tab of TallyInsLaw.com, including:

Property & casualty:

• "Impact Analysis of HB119," the independent actuarial study of savings expected from the 2012 PIP (no-fault auto insurance) reform law (Aug. 20, 2012).

• Office of Insurance Regulation's caveats on the "Impact Analysis of HB119" (Aug. 21, 2012).

• "Historical U.S. Hurricanes That Would Cause $10 Billion or More in Insured Losses Today," a report by Karen Clark & Company (Aug. 21, 2012).

• "Twenty Years of Progress: Advances in the Property Insurance Industry Since Hurricane Andrew," a special report from Property Casualty Insurers Association of America (Aug. 22, 2012).

• Citizens' Rate Hearing Press Kit - a summary of Citizens' proposed rate increase proposal for 2013 (Sept. 20, 2012).

• OIR announces Citizens take-out approvals - nearly 300,000 policies have been approved for removal from Citizens in non-bonus and non-loan takeout plans (Sept. 24, 2012)

Life & health:

• Long-term Care Managed Care Technical Advisory Workgroup Final Report (Aug. 21, 2012).

• Allianz Life Insurance Co. multi-state settlement agreement and OIR press release (Sept. 4, 2012) regarding sale of fixed annuity products.

This summary was prepared by Perry Cone and posted at TallyInsLaw.com.
Legal Notice and Disclaimer

PIP reform analysis 2012: Only 2 changes likely to lower costs

Just two! That's the number of provisions of 2012 PIP law HB 119 that are predicted to have a material impact on reducing PIP loss costs and premiums. The key changes are the $2,500 cap on non-emergency treatment and the exclusion of massage therapy. Their combination is estimated to be as much as 96% of the new law's impact on cost savings.

These are some of the conclusions of Pinnacle Actuarial Resources, Inc. (Pinnacle), in its actuarial analysis of HB 119. Enacted in the 2012 Florida legislative session, HB 119 directed the Office of Insurance Regulation (OIR) to engage an independent actuary to calculate the savings expected from HB 119. OIR selected Pinnacle, which released its final report on August 20, 2012.

GrayRobinson moves up in AmLaw 200

On the American Lawyer's list of the top U.S. law firms for 2012 by gross revenues, Florida-based GrayRobinson moved up to number 179.  See The 2012 Am Law 200.

In other news, The Florida Current reported that GrayRobinson was a top-four Florida lobbying firm based on reported revenues for 2012 1st and 2nd quarters.

Perry Cone, the author of TallyInsLaw.com, practices Insurance Regulatory, Corporate, and Government Law in the Tallahassee office of GrayRobinson.

Resource library updated - P&C and Health Insurance

If you haven't visited it recently, the 2012 Resource Library has been updated. June-July additions marked with an * include the following resources:

• Citizens SB408 sinkhole savings actuarial analysis, depopulation committee exhibits, and 2013 rate filings exhibits (bottom of heading no. 2. Citizens).

• OIR's Order suspending prior-approval requirement for P&C form filings (bottom of heading no. 4. Property Insurance).

• State of the Florida Homeowners’ Insurance Market presentation by OIR Commissioner Kevin McCarty (bottom of heading no. 5. General Insurance).

• Health insurance presentations by OIR to the Florida Health Insurance Advisory Board (bottom of heading no. 9 Health Care).

This summary was prepared by Perry Cone and posted at TallyInsLaw.com.

Legal Notice and Disclaimer

Chalfonte decided - first-party bad faith is statutory only

There should be a gigantic sense of relief (and appropriately so) on the part of in-house counsel and executives of insurers doing business in Florida. Yesterday, the Florida Supreme Court resolved important questions regarding liability in first-party insurance cases, in the long-awaited QBE Insurance Corp. v. Chalfonte Condominum Apartment Assoc., No. SC09-441 (Fla., May 31, 2012).

The three key decisions of the Court are summarized below:

Citizens assessments reduced in last bill passed 2012 session

There's good news for Florida's property insurance market. It took all session, but at 11:30pm this evening the Florida Legislature approved a bill that reduces the regular assessments of Citizens Property Insurance Corp.