Each week, you’ll find specially curated news articles to keep you up to date on the ever-evolving world of insurance and risk management. The articles are divided out between items relevant to Property & Casualty, Employee Benefits/Human Resources, and Compliance. We’ve included brief summaries of each item as well as a link to the original articles.
PROPERTY & CASUALTY
Companies Are Still Trying to Figure Out How to Comply With SEC Cyber Rules “Some public companies are still trying to figure out how to comply with new rules from the US Securities and Exchange Commission requiring speedy disclosure of significant cyberattacks. Those rules, which kicked in Monday, require companies to report cyber incidents within four business days of determiningthey are “material” to shareholders. The SEC previously required firms to disclose major events that would be of shareholder interest, but didn’t specify cyber events.” Full Article – Insurance Journal
Flooding Drives Millions to Move as Climate Migration Patterns Emerge “Flooding is driving millions of people to move out of their homes, limiting growth in some prospering communities and accelerating the decline of others, according to a new study that details how climate change and flooding are transforming where Americans live. In the first two decades of the 21st century, the threat of flooding convinced more than 7 million people to avoid risky areas or abandon places that were risky, according to a paper Monday in the journal Nature Communications and research by the risk analysis organization First Street Foundation.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Health & Welfare Benefits Monthly Update, December 2023 (PDF) “Topics: [1] Year-end Washington update; [2] End of the Public Health and National Emergencies and Outbreak Period; [3] Developments in prescription drug coverage; [4] CAA, 2021 Updates: TiC and IDR; [5] Preventive services developments; [6] HIPAA developments; [7] 2023 Mental Health Parity proposed regulations; and [8] Grab bag report and reminders.” Full Article – Alston & Bird
Data Theft Was Not Necessarily “Gross Misconduct” That Would Preclude COBRA Coverage (PDF) “The court acknowledged that prior case law has established that criminal theft indisputably constitutes gross misconduct but noted that the former employees had not admitted to stealing the data and the city had not offered admissible evidence proving the employees’ actions.” Full Article – Thomson Reuters / EBIA
The ERISA Edit: More Litigation Involving Health Plan Savings Fees “This case is one of a growing number of lawsuits alleging improper self-dealing by third-party administrators (TPAs) for charging ‘savings fees’ to self-funded plans based on alleged savings achieved for the plans through the TPAs’ processing of out-of-network claims.” Full Article – Miller & Chevalier Chartered
Participant May Sue Plan for Facial Feminization Surgery Coverage “The court determined that the participant had presented facts sufficient to show that the plan had applied its cosmetic procedure exclusion in a discriminatory manner. It explained that the facts alleged by the participant show that the plan’s denial of coverage for the surgery was based, at least in part, on considerations of gender stereotypes and gender conformity or nonconformity.” Full Article – The Wagner Law Group
Signed, Sealed, Delivered … Have You Completed Your Plan’s “No Gag Clauses” Attestation? “All group health plans, whether fully insured or self-insured, are required to submit an attestation to CMS confirming that the plan has been compliant with the prohibition on gag clauses since December 27, 2020. This must be completed by December 31, 2023, and annually thereafter. Plans are permitted to contract with their TPA or carrier to complete the gag clause reporting on behalf of the plan.” Full Article – Holland & Hart LLP
Continuation of Health Benefits on Unpaid Leaves Can Cause Stop Loss Coverage Headaches “Unless the employer wants to modify its handbook and plan documents (and for self- funded plans, stop loss coverage) to provide continued active coverage during an unpaid leave, the employer instead should consider categorizing the coverage during the unpaid leave as COBRA coverage. Failure to do so could result in the stop loss carrier or insurance company denying claims during the period of the unpaid leave, as the employee was not actively at work, on a protected leave, or on COBRA.” Full Article – Haynes and Boone, LLP
STATE & INTERNATIONAL COMPLIANCE
In addition to the RISQ Review, RISQ Consulting also provides a resource that features changes and updates to State and International Compliance measures. We’ve included brief summaries of each item below, and also provided links to the original articles if you’d like to read further.
ILLINOIS
Not to be Outdone by the State of Illinois, Chicago Passes A New Paid Leave Ordinance, Which Doubles the Amount of Paid Leave Available to Eligible Employees
“On November 9, 2023, the City of Chicago passed its Chicago Paid Leave and Paid Sick and Safe Leave Ordinance (“Ordinance”), which goes into effect on December 31, 2023, and replaces the City’s current PSL Ordinance.” Full Article
– Michael Best & Friedrich LLP
NEW YORK
New York Governor Hochul Rejects Wholesale Ban on Non-Compete Agreements
“Governor Kathy Hochul answered the long-awaited question of whether New York would join California, North Dakota, Oklahoma and, most recently Minnesota, as a state banning the use of non-compete agreements between employers and employees. While New York legislators passed a bill to do just that in June, yesterday, Governor Hochul announced that she would not be signing it.” Full Article
– Seyfarth Shaw LLP
ALABAMA
New Alabama Law Exempts 2024 Overtime Pay from State Taxation
“Beginning Jan. 1, 2024, hourly paid employees in Alabama will not pay any state income tax on their overtime pay. The new law effectively gives hourly employees a 5% pay raise (the state income tax rate), but it also creates new administrative and reporting requirements for their employers.” Full Article
– Phelps Dunbar LLP
CALIFORNIA
California Employees Entitled to up to 20 Days of Reproductive Loss Leave
“California employers with five or more employees must provide to employees who have worked for at least 30 days before the start of leave up to five days per event for each of the following reproductive loss events: miscarriage; failed adoption; failed surrogacy; stillbirth; and unsuccessful assisted reproduction (artificial insemination including gamete and embryo donation).” Full Article
– Gordon Rees Scully Mansukhani LLP
MASSACHUSETTS
Massachusetts PFML Update: DFML Releases 2024 Poster and Updated Employee Notices
“The 2024 poster and updated template notice forms are now available on the Department of Family and Medical Leave’s (DFML’s) website. The DFML has also updated the PFML notice employers must provide to new employees to address the recent amendments to the PFML Act.” Full Article
– Seyfarth Shaw LLP