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Around the PIA Western Alliance States

Posted By Administration, Tuesday, April 10, 2018

Alaska — Credit Scoring: The Property Casualty Insurers Association (PCI) and many others are pleased that Alaska now has a new credit-based scoring law that brings the state in line with the rest of the nation.

Spokesman Armand Feliciano said, “Governor Walker and Alaska Director of Insurance Lori Wing-Heier should be commended for this common-sense approach that balances consumer protection with the opportunity for consumers to receive the full benefits of credit scoring which includes premium discounts. HB 195 resolves this ongoing problem that frustrated consumers when they lost their discount upon their policy renewal.”

The bill does leave in consumer protections that lets them apply for extraordinary life circumstances and get exceptions for catastrophe, serious illness, death, divorce, identity theft, loss of employment and military deployment.

There is also an appeals process with the department of insurance.


Source link: Insurance Journal


Arizona — Opioids: Legislation has been approved by Governor Doug Ducey to protect injured workers from the overprescribing of opioids.

The Arizona Opioid Epidemic Act, and SB 1111 allows the state to track an injured worker’s use of opioids to keep them from becoming addicted. It also creates a process to address unreasonably high drug costs.


Source link: Insurance Journal


California — Premiums: Insurance Commissioner Dave Jones has announced that California's annual insurance premium volume has increased to $332 billion. California is now the third largest insurance market in the world and remains the largest insurance market in the United States.

"As the regulator of the largest insurance market in the nation, I am committed to protecting consumers and making sure they have access to a healthy insurance market offering products to meet consumer and business needs," said Insurance Commissioner Dave Jones. "Insurance is the one product that touches our lives from the moment we are born to beyond our last breath. Whether it is health, auto, home, business, workers' compensation, disability or life, insurance is an integral part of our lives-we rely on it to protect ourselves, our families, our assets and our businesses. Insurance provides financial protection and peace of mind for millions of Californians."

Based on the most recent data available, California insurance companies now collect $332 billion in premiums every year. In California, there are more than 24 classes of insurance, sold by more than 1,300 companies. More than 410,000 agents, brokers, adjusters, and business entities are licensed to sell insurance in the state. 


California — Orange County Fire Response: Complaints are being filed against the Orange Country Fire Authority. A panel — an independent one — has found the authority guilty of making missteps.

On October 9th of last year two callers told the dispatch that they saw flames. The authority didn’t respond for a full hour. As a result 15 homes were burned and 9,200 acres burned.

The authority is taking steps to improve dispatch and deployment.


Oregon — Brown Signs Tax Package: Governor Kate Brown has signed a controversial business tax package into law. Senate Bill 1528 keeps some businesses from participating in the tax cut from the federal tax reforms passed last year.

The tax to businesses means the state gets $250 million extra in income.

Small business complained and the governor said she understands and wants a special session to sort things out and extend some of those cuts to them.

I want Oregon to be a state that is friendly to our small businesses. These are our entrepreneurs, our mavericks, our innovators. These are the businesses that grow jobs in Oregon, and I want to make sure that we are receptive to this entrepreneurial spirit,” the governor told reporters after she signed the bill.

It took her a long time to sign and some thought she might veto the bill.

Republicans — as expected — oppose the bill and think the governor should have vetoed this one. Rep. Julie Parrish said the governor waiting so long to sign didn’t leave opponents enough time to gather signatures to put the issue before the voters.

“This is what Oregonians get when we have an elected leader who has never signed the front of a check and has no real-world experience of understanding the risk and capital investment needed to start or grow a business, or who have been materially responsible for the livelihoods of their employees,” Parrish said.

Republican Sen. Jackie Winters agrees. “The right thing to do would be to veto this partisan tax increase on small business. Start-ups, mom and pop shops, and young entrepreneurs are doing great things for Oregon, but the majority party insists on passing an unfair tax increase that will stifle their growth, and harm the very Oregonians we should be helping. There is no budgetary need to raise taxes on small business.”

The bill had no Republican support in either the Senate or the House.


Source link: OregonLive.com


Oregon — Common Ground newsletter: Two years ago, the Oregon Insurance Division merged with the Division of Finance and Corporate Securities to form the Division of Financial Regulation. Today, we are proud to present the first official newsletter from the Division of Financial Regulation:

The publication is called Common Ground. In this flagship edition, you will find a summary of new laws that are now in place, an introduction to our consumer outreach team, department news, and recent bulletins.

We hope you find this newsletter informative and beneficial.

Here is a link to the publication: http://dfr.oregon.gov/news/Documents/2018-spring.pdf


Oregon — Illegal Driving Permits: The Division of Financial Regulation is reminding consumers to be cautious of fraud after a recent felony theft case involving a Hillsboro insurance agent. A joint investigation between the Hillsboro Police Department and the division revealed that the agent, Skip Molen, illegally sold international driving permits out of his office.

Molen illegally sold the permits as government-issued driver licenses to more than 200 people for $250 each.

The permits are typically sold in the U.S. for $25 by two authorized distributors – the American Automobile Association (AAA) and the American Automobile Touring Alliance. They are used to translate information from a government-issued driver license while driving in other countries. The permits are not valid for use in the issuing country.

The investigation into the sale of the permits was initiated by Hillsboro Police when a driver presented a permit to an officer during a traffic stop. The driver advised the officer he had purchased the permit from Molen’s agency.

Molen pleaded guilty to one count of felony theft and he was sentenced to 30 days in jail and probation. The division revoked Molen’s insurance license.

“As the state regulator we work hard to investigate and penalize fraudulent professionals, said Andrew Stolfi, Oregon insurance commissioner. “We encourage Oregonians to call our advocates any time they have a concern with any of their financial products and services, or the professionals and businesses that provide them.”

The best way to avoid a scam is to ask a lot of relevant questions and contact our advocacy team for help. Our advocates can be reached at 888-877-4894 (toll-free), by email cp.ins@oregon.gov, or by visiting http://dfr.oregon.gov/gethelp/protect-finances/Pages/index.aspx. 

To view the final order, go to http://dfr.oregon.gov/AdminOrders/enf-orders-2018/Molen%20Final%20Order%20SSIG.pdf.


Washington: Kreidler Issues Fines: Insurance Commissioner Mike Kreidler issued fines in February 2018 totaling $49,200 against insurance companies, agents and brokers who violated state insurance regulations. The biggest fine was $30,000 against GEICO for not properly notifying consumers whose premiums it raised because they had placed a freeze on their credit scores.

GEICO, Chevy Chase, Md.; fined $30,000, order 17-0377

A consumer filed a complaint with the insurance commissioner after GEICO raised the consumer’s insurance premium after the consumer placed a freeze on a credit score. State law allows insurers to consider consumers’ credit information when setting premiums, but requires that they notify consumers and give them a reason for the increase when they raise premiums based on credit information. The company sent an adverse action notice to the consumer but didn’t give the reason for the premium increase. An inquiry from the commissioner revealed that GEICO sent adverse action notices without citing a reason to 293 consumers in the past two years. After the commissioner’s inquiry, GEICO contacted each of the consumers to address the reason for the adverse action notice and give them an opportunity to lift the freeze for a credit check.

Read questions and answers about credit freezes and insurance in Washington state.

Berkley National Insurance Co., Urbandale, Iowa; fined $10,000, order 18-0031

The insurance commissioner discovered during a routine market conduct examination that the company used the wrong rating factors 50 times for 22 commercial property policies. The policies were not overcharged and no consumers were harmed.

Hien Thi Luong, Lake Forest Park, Wash.; fined $500, order 17-0464

Luong, an insurance producer, falsely stated on her license renewal that she completed the required 24 hours of continuing education. She submitted a falsified certificate of completion for a class she did not finish.

Vicki E. Burnett, Aberdeen, Wash.; fined $500, order 17-0467

A consumer filed a complaint with the insurance commissioner when Burnett sold him a six-month auto policy but collected 12 months’ worth of premiums from him. Burnett told the insurance commissioner she intended to renew the policy after the first six months and held the consumer’s payment in an account as a way to help the consumer. However, insurance producers are required by state law to either remit full premium payments to the insurer or refund the balance to the consumer. Burnett refunded the money to the consumer.

Steven Gould, Castle Rock, Wash.; license revoked, order 17-0469

Farmers Insurance notified the insurance commissioner that it terminated Gould’s appointment to sell insurance because he repeatedly did not remit premium payments to the company within 24 hours. He admitted to Farmers that he had occasionally used premium payments to buy office and personal items, a violation of state law. He also wrote new policies and then voided them. The insurance commissioner revoked his license and he is no longer allowed to sell insurance in Washington state.

Delia Groh, Burlington, Wash.; license revoked, order 17-0471

Allstate Insurance notified the insurance commissioner that it terminated Groh’s appointment to sell insurance after Groh backdated an auto policy to cover collision damage that occurred while she was uninsured. The insurance commissioner revoked Groh’s license, and she is no longer allowed to sell insurance in Washington state.

Norm P. Fournier, Jr., Fall City, Wash.; fined $250, order 17-0476

A consumer filed a complaint with the insurance commissioner about Fournier, a licensed insurance producer. The consumer said he requested a quote, but Fournier wrote a policy and sent it to the consumer with a premium bill. The consumer canceled the policy and did not have to pay any premiums.

Stacey A. Scott Insurance Agency, Woodinville, Wash.; fined $500, order 17-0489

The agency allowed an employee to provide insurance quotes without have an insurance producer license, a violation of state law. 

Phung Cam Wiley, Renton, Wash.; fiend $2,000, order 17-0490

Wiley, a licensed insurance producer, added her name to three consumers’ auto insurance policies. One of the consumers is Wiley’s sister and the other two are not related to her. Wiley has no insurance interest in any of the vehicles. It is illegal for a producer to be added to a policy if they don’t have an insurable interest in the property. Adding her name lowered the policies’ premiums by $1,382, which is money the insurer should have collected. The insurance commissioner suspended $1,000 of the fine as long as Wiley commits no further violations as an insurance producer for the next two years.

Elson Son Tran, Bellevue, Wash.; fined $500 and license reinstated, order 17-0493

The insurance commissioner revoked Tran’s insurance producer license in January 2016 for failure to pay the licensing renewal fee and failure to respond to inquiries from the commissioner. In November 2017, Tran sought to reinstate his license; he paid the fine and the full licensing fee and agrees to comply with state insurance laws.

Tammy Lee White, Seattle; fined $500 and license reinstated, order 17-0497

The insurance commissioner revoked White’s insurance producer license in October 2017 for failing to pay her license renewal fee and failing to respond to the commissioner’s inquires. In December 2017, White sought to reinstate her license; she paid the fine and the full licensing fee and agrees to comply with state insurance laws.

James P. Ball, Eatonville, Wash.; fined $250, order 18-0056

Ball applied for an insurance producer license in January 2018 but failed to disclose two misdemeanor convictions in 2004 and 2011. Ball is eligible for a producer license once he pays the fine.

FlypShield Mortgage Insurance, LLC, Bellevue, Wash.; ordered to cease and desist, order 18-0053

The insurance commissioner received a complaint that FlypShield sold private mortgage insurance without an insurance producer license, a violation of state law. The insurance commissioner orders the company to cease and desist from selling insurance to Washington state consumers.

Teresa Lee Leuth, Spokane, Wash.; issued probationary license, order 18-0052

Leuth reapplied for an insurance producer license after being convicted of a felony in 2017. She has paid her court fees and fines, will serve 200 hours of community service and remains on court-ordered probation until 2021. She will remain employed at the same Spokane insurance agency where she’s been working since 2014, and her work will be monitored by the agency’s president. Her license will remain on probationary status for five years or until the terms of her sentence are complete, whichever comes later.

Aegis Capitol Corp., Melville, New York; fined $250, order 17-0500

Aegis failed to report an administrative action by the Financial Industry Regulatory Authority (FINRA) within 30 days, as required by state law.

Franklin C. Reid, Warwick, R.I.; fined $500 and license reinstated, order 18-0003

The insurance commissioner revoked Reid’s insurance producer and surplus line broker licenses for failure to pay surplus line premium taxes and failure to respond to the commissioner’s inquiries. In December 2017, Reid sought to reinstate his licenses; he paid the past-due taxes and the fine and agrees to comply with state insurance laws.

Kovack Securities, Inc., Fort Lauderdale, Fla.; fined $500 and license reinstated, order 18-0009

The insurance commissioner revoked Kovack Securities’ insurance producer license in September 2017 for failure to report an administrative action by the state of Oklahoma against its license and failure to respond to the commissioner’s inquires. In December 2017, the licensee sought to reinstate its license; it paid the fine and agrees follow Washington state insurance laws.

Curran McCoy, Colorado Springs, Colo.; fined $500 and license reinstated, order 18-0028

The insurance commissioner revoked McCoy’s insurance producer license in November 2017 because she failed to notify the commissioner of an administrative action against her by the state of California, and she failed to respond to the commissioner’s inquiries about the action. Later that month, McCoy sought to reinstate her license; she paid the fine and agrees to comply with state insurance laws.

Janet E. Beaver, Los Angeles; fined $250, order 18-0049

Beaver, a licensed insurance producer, failed to report an administrative action against her by state of North Dakota within 30 days, as required by state law.

Mark D. Derrenberger, Garden City, N.Y.; fined $250, order 18-0050

Derrenberger, a licensed insurance producer, failed to report an administrative action against him by the state of Texas within 30 days, as required by state law.

Nationwide Member Solutions Agency, Inc., Des Moines, Iowa; fined $250, order 18-0018

A cosumer emailed the agency, a licensed insurance producer, to request that two policies be canceled. The insurer, Nationwide, told the consumer that the policies would not be canceled until he filled out a cancelation form, which is a violation of state law. Washington state law allows consumers to cancel a policy by mail, email, fax or verbally.

Quadell Spradley, Reading, Pa.; ordered to cease and desist, order 17-0202

National Brokers of America, Inc., Reading, Pa.; ordered to cease and desist, order 17-0203

Spradley and National Brokers of America sold a non-ACA-compliant health insurance plan to a Washington state consumer without having a producer license. Further, the policy was not the type of plan the consumer was looking for. The consumer canceled the policy and received a refund. 

North Idaho Association of Health Underwriters, Coeur d’Alene, Idaho; fined $600, order 17-0459

The company, a continuing education provider for insurance producers, advertised a class and allowed producers to enroll before the insurance commissioner authorized the class, a violation of state law. 

Cozen and O’Connor, Philadelphia; fined $300, order 18-0015

The company, a continuing education provider for insurance producers, didn’t follow rules that require attendees to sign out in order to receive credit for the courses.

Insurance Business Consultants, Fort Myers, Fla.; fined $600, order 18-0016

The company, a continuing education provider for insurance producers, submitted rosters to the insurance commissioner late and incomplete and issued completion certificates late to attendees.

Northwest Washington Estate Planning Council, Bellingham, Wash.; fined $200, order 18-0041

The council, a continuing education provider for licensed insurance producers, offered a continuing education course without first getting the insurance commissioner’s approval, as required by state law.


Source link: Washington Department of Insurance

Tags:  Around the PIA Western Alliance States  Insurance Content  Insurance Industry  Insurance News  Weekly Industry News 

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