Legal Challenge to IL Swipe Fee Law, Possible Delay of New WA Insurance Premium Transparency Requirement & More

IL’s New ‘Swipe’ Fee Law Faces Legal Challenge

The Illinois Bankers Association and other organizations filed a federal lawsuit to block a new Illinois law limiting banks from charging interchange, or “swipe,” fees on tax and tip revenues. The Interchange Fee Prohibition Act is scheduled to take effect on July 1 next year. (CENTER SQUARE)

WA Considering Delay of New Insurance Premium Change Transparency Requirement

Washington State Insurance Commissioner Mike Kreidler (D) has proposed delaying Phase 2 of a recently adopted insurance premium change transparency rule for two years, from June 2027 to June 2029. Phase 1 of the rule, which took effect in June of this year, requires homeowners and auto insurers to disclose to policyholders why their premiums have increased when asked. Phase 2 will require the reasons for premium increases to be included in policy renewals. (INSURANCE JOURNAL)

FL Insurers Not Liable for Bank Error

The U.S. 11^th Circuit Court of Appeals ruled that insurance carriers can’t be held responsible when banks improperly cash checks made out to two insureds and give the proceeds to just one of them. The federal appeals court’s decision—involving Markel American Insurance Co. and a pair of Florida-based truck-leasing firms—and a similar ruling by a state-level appellate court in Florida in 2022 means insurers in the state are unlikely to face similar lawsuits in the future. (INSURANCE JOURNAL)

—Compiled by SNCJ Managing Editor KOREY CLARK

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