Given the varying laws, compliance protocols, industry transparency, and general regulatory culture from state to state, keeping up with changes in the industry can sometimes give the impression that it’s akin to herding cats. So what better way to discuss more localized insurance news than with a regulatory roundup?
We continually incorporate various regulatory changes, compliance actions, and commissioner decisions into our summaries without regard to any particular order or ranking. As a disclaimer, this is by no means a comprehensive picture of state-level actions, as there is a lot going on here in the United States all the time. Rather, think of it as an assortment of regulatory samplers.
Also important to note: When summarizing interpretations of legal rulings, this is armchair insurance speculation and not legal advice. If you need For legal advice, please consult an attorney.
California pilots pioneering parametric program in flood-prone cities
Try saying it three times fast! But in all seriousness, flooding due to climate change remains a top concern for residents across the Golden State. and More than 7 million Californians are at risk of floodingstates are rushing to spread awareness and prepare property owners for the upcoming flood season in any way they can.
For Iselton, a small, flood-prone city in the Sacramento-San Joaquin Delta, a community-based flood insurance initiative could help people recover from major disasters. The pilot project, led by the California Department of Insurance and funded by the California Department of Water Resources (DWR), is a first for the state. The innovative approach is parametric insurance A policy that would make payments to residents of Iselton if floodwaters reach a certain depth.
Regarding the threat of flooding from climate change, California Secretary of State Ricardo Lara said, “We need to help communities become more resilient to climate change and protected from the devastating effects of flooding.” Insurance is a key driver of economic resilience, and we need to be creative about how we can test and scale new insurance pilots like this Delta Regional Community Project to help our most vulnerable communities. I need to think about it.”
According to California Department of Insurance News Releasepayments from this initiative, combined with the existing coverage that Isleton residents have through the National Flood Insurance Program, should be enough to help area residents survive the aftermath of a major flood. The money could be used to cover evacuation costs such as accommodation, food, transport and business interruption for Iselton residents, as well as extensive property damage.
This project is an exciting step towards a more resilient industry and we look forward to seeing it unfold. To learn more about parametric insurance as a cost containment tool, check out our e-book. The future of property and casualty insurance: The race to contain costs amid rising catastrophic losses.
Workers’ compensation system collects $200,000 in fraudulent claims
Will regulators be making round-up arrests even though there are currently no insurance fraud cases? This time, The owner of a for-profit college in Fresno, California, has been indicted on 11 felonies, including fraudulent insurance claims estimated at $200,000.
Paul Steve Ramirez, 59, owner of P. Steve Ramirez Vocational Training Center, fraudulently charged workers’ compensation voucher services and failed to provide adequate training at the for-profit schools he owned. He is accused of having committed a crime.
Ramirez, who also owns a career counseling business, thought he had found a quick and surefire way to maximize his income by referring counseling center students directly to his own educational institutions. It also fraudulently collected Supplementary Separation Benefit (SJDB) voucher funds from 37 different students over a three-year period and billed insurance companies for services even when the students did not meet the minimum qualifications for their courses.
As a result, many of the injured workers Ramirez worked with were unable to complete the course and receive benefits. The Fresno County District Attorney’s Office is prosecuting this case and hopes to bring justice to the workers affected by Mr. Ramirez’s shady conduct.
Washington Secretary of State imposes fine of more than $300,000
Washington State Insurance Commissioner Mike Kreidler issued the following statement emphasizing how important compliance is to your bottom line. Fines totaling $302,500 for July, August and September.
Over the summer, more than 20 insurance companies, agents, brokers, and other unlicensed entities were fined by the Commissioner. Charges range from $250 to individual licensees who provided inaccurate, misleading, incomplete, or false information on their license applications to improperly deny claims based on gender-specific procedural provisions. They ranged from $150,000 to health insurance companies.
Other notable fines include:
- $50,000 to a carrier who sold travel insurance policies and acted as an insurance company in Washington state without a valid license or certificate of authority.
- $10,000 over 11 years against a corporation that acted as an insurance agent without a valid license.
- $20,000 to an airline that had 12 producer reservations expire for more than 30 days.
While some of these violations were the result of fraud, others may simply be the byproduct of inefficient distribution channel management. I understand that. Keeping the entire distribution department up to date with ever-changing state insurance laws and regulations is no easy feat. That is, unless you have an automated distribution channel management solution that pulls up-to-date producer data and state-by-state compliance nuances directly into your daily workflow.
See how AgentSync can help you avoid these fees Make compliance easy. And thanks again to Washington for explaining how much you can save by being compliant.
Other state regulatory changes
Alabama It has been announced that insurance company reservation renewal invoices will be payable from January 6, 2025 to March 1, 2025. The deadline is December 31, 2024.
colorado Hired by Commissioner Michael Conway New regulations regarding insurance coverage requirements for pediatric dentistry. The new requirement allows health insurance companies to offer health benefit plans that do not include pediatric dental essential health benefit coverage to children aged 19 years in the individual or small group market without obtaining reasonable assurance that such coverage was purchased. Prohibits sales to consumers with children under the age of 10.
connecticut Establishment of advisory committee on extreme weather mitigation and resilience Help strengthen homes and businesses against climate-related risks. The council will be comprised of a diverse team of subject matter experts who will review mitigation programs and make recommendations to strengthen the state’s resilience to extreme weather events such as flooding.
florida Granted a 60-day continuing education extension to all licensees with CE credits expiring in October, November, and December 2024 for agents and adjusters affected by recent hurricane activity .
Massachusetts Implemented a new transaction type to handle rename (demographic) updates. This came into effect on October 18, 2024.
montana Securities and Insurance (CSI) Commissioner Troy Downing is pleased to report that State Farm has reviewed an additional 18,000 claims after being fined $4 million for unfair claims resolution practices. did. According to press release The review, published on October 17, 2024, confirmed that an additional $5.2 million will be repaid to Montanans affected by the State Farm wrongful claims settlement.
new mexico A state of emergency was declared after severe flooding devastated Chaves County. New Mexico Governor Michelle Grisham issued a presidential order Insurers who write health insurance in New Mexico must offer premium payment grace periods to policyholders whose homes were affected by flooding.
new york Adrian Harris, director of the state’s Office of Financial Services, issued a new statement. guidance We help regulated entities address and combat cybersecurity risks associated with artificial intelligence. This guidance is designed to help the financial services sector mitigate AI-specific cybersecurity risks, including social engineering, enhanced cyber-attacks, theft of non-public information, and increased vulnerabilities due to supply chain dependencies. We take a based approach.
oklahoma issued breaking news Regarding new requirements established by Senate Bill 543, which enacts the Insurance Data Security Act. Key requirements include an obligation for certain licensees to submit annual information security program reports beginning July 1, 2025, and a requirement that certain licensees file cybersecurity events related to non-public information if certain conditions are met. Includes a requirement to notify the Commissioner of Insurance within three business days.
vermont state $80 appointment and termination fee for out-of-state carriers for life insurance, accident insurance, health insurance, sickness insurance, disability insurance, property insurance, personal insurance, variable insurance, and variable insurance. , plans to revise it to be free for intrastate carriers. LOAs for pensions, rental cars, credit, self-storage, travel, title, and portable electronics. Changes will be effective from January 1, 2025.
While these key points are not comprehensive, our knowledge of maintaining licenses and compliance for insurance companies and variable insurance brokers is. See how AgentSync can help you look smarter today. heading to compliance library and struggle Adds the latest information on state-by-state regulations and jurisdictions.
Topics
California
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law
flood
workers’ compensation compensation
