Colodny Fass Featured in Federation of Regulatory Counsel April/May 2012 Update

May 23, 2012

Colodny Fass attorneys were featured contributors to the Florida section of the Federation of Regulatory Counsel’s (“FORC”) April/May 2012 “FORC Alert.”  To view the publication, click here.  The articles are reprinted below.

Should you have any questions or comments, please contact Colodny Fass.

 

Florida Office of Insurance Regulation Orders United States Contractors Trust and Access Health Now to Cease and Desist Unauthorized and Unlicensed Insurance Sales

Florida Insurance Commissioner Kevin McCarty issued a March 20, 2012 order to United States Contractors Trust (“USCT”) and ACCESS Health Now to cease and desist engaging in the unauthorized and unlicensed sale of insurance in the State of Florida. The Florida Office of Insurance Regulation conducted an investigation and concluded that both companies provided and/or offered to provide limited health insurance to Florida residents without a license. USCT is a Delaware statutory trust and ACCESS does business via its website, www.accesshealthnow.com. Both represent themselves as membership associations that offer their members accident and healthcare benefits, but records indicate that USCT and ACCESS have never been authorized to sell health insurance in the State of Florida. To view the order, click here.

Florida Office of Insurance Regulation Order Exempts Commercial Lines Risks from Form Filing Requirements Under Certain Circumstances

The Florida Office of Insurance Regulation has issued an Order exempting certain property and casualty policy forms, policy endorsements, applications or other forms from the requirements of Section 627.410, F.S., in certain circumstances. The Order is effective for one year beginning April 9, 2012. To view the Order, click here.

Florida Office of Regulation Announces NIMA, Inc. Enters into Agreement with the Florida Surplus Lines Service Office As Clearinghouse Provider

The Florida Office of Insurance Regulation announced on April 17, 2012, that NIMA, Inc. will contract with the Florida Surplus Lines Service Office to serve as its central clearinghouse provider for the collection and allocation of surplus lines premium tax payments for multi-state surplus lines policies.

Class Certification Denied to Challengers of Medicare Outpatient Prospective Payment System Personal Injury Protection Fee Schedule Reimbursement

On March 7, 2012, Judge Ursula Ungaro of the Southern District of Florida denied class certification in a case brought against State Farm Mutual Automobile Insurance Company by a class of providers challenging the application of the Medicare Outpatient Prospective Payment System to fee schedule reimbursements for Personal Injury Protection insurance. The court had previously ruled against State Farm on the merits of the claim, finding that the PIP statute did not allow the use of OPPS to cap reimbursements. However, in deciding not to certify the class, the trial court specifically found that whether or not a payment utilizing OPPS was “reasonable” was an individual inquiry which depended on the circumstances of each claim.

Florida Office of Insurance Regulation Orders Safe Harbor Christian Foundation to Cease and Desist Writing Donor Annuities

Florida Insurance Commissioner Kevin McCarty issued an April 5, 2012 order to Safe Harbor Christian Foundation (Safe Harbor) to cease and desist writing any new donor annuity business in Florida. Safe Harbor was registered as a donor annuity in Florida in 2007, and has home offices in Newark, Ohio. Safe Harbor reported a total of three annuities in force in Florida totaling $100,000. The order was precipitated by action by the U.S. Commodity Futures Trading Commission in the U.S. District Court for the Western District of North Carolina. To view the order, click here.