Around the PIA Western Alliance States – Week of January 20, 2025

The National Association of Insurance Commissioners Committee Assignments — Several PIA Western Alliance State Commissioners are serving: The National Association of Insurance Commissioners (NAIC) has named its chairs and vice chairs of the organization's standing committees for 2025.

"As the insurance industry faces an evolving landscape of risks, the NAIC's eight letter committees are working collaboratively to strengthen insurance regulation," NAIC President and North Dakota Insurance Commissioner Jon Godfread said. "I look forward to the innovative solutions my fellow regulators will develop to protect consumers and foster a more resilient insurance sector."

The 2025 NAIC committee leadership assignments are based on requirements established by the NAIC Bylaws.

These are the PIA Western Alliance elected officials serving on NAIC committees:

Market Regulation and Consumer Affairs (D) Committee Chair: Dean L. Cameron, Director, Idaho Department of Insurance. Serving with him is Co-Vice Chair Scott Kipper, Commissioner, Nevada Division of Insurance.

Financial Regulation Standards and Accreditation: Committee Chair: Lori K. Wing-Heier, Director, Alaska Department of Commerce, Community, and Economic Development, Division of Insurance. Serving with her as Co-Vice Chair is Andrew R. Stolfi, Director/Insurance Commissioner, Oregon Department of Consumer and Business Services.

Innovation, Cybersecurity, and Technology Committee. The Committee Chair is Barbara D. Richardson, Director, Arizona Department of Insurance and Financial Institutions.

California — Commissioner Lara expands moratorium protecting more wildfire survivors: Insurance Commissioner Ricardo Lara expanded emergency insurance protections for Southern California homeowners, adding new ZIP Codes to those already under a mandatory one-year moratorium on insurance non-renewals and cancellations. The amended Commissioner’s Bulletin shields those within the perimeters or adjoining ZIP Codes of the Palisades, Eaton, Hurst, Lidia, Sunset, and Woodley fires in Los Angeles County for one year from the Governor’s January 7 emergency declaration regardless of whether they suffered a loss.

Commissioner Lara issued the first wave of protections last Thursday after the Palisades and Eaton fires broke out. As firefighters battle wildfires across the region, he will issue a supplemental bulletin if additional ZIP Codes are within or adjacent to a fire perimeter subject to this declared state of emergency for Los Angeles and Ventura counties.

“Angelenos in the areas of these devastating wildfires need to know that we will protect their access to insurance coverage,” said Commissioner Lara. “I am using my moratorium powers to prevent insurance companies from canceling or non-renewing policies in wildfire-impacted areas, so people don’t face the added stress of finding new insurance during this horrific event. My staff and I are working on all fronts to make sure wildfire victims get the benefits they are entitled to, and they get it as soon as possible.”

Residents can go to the Department of Insurance website to see if their ZIP Code is included in the mandatory moratorium. Consumers should contact the Department of Insurance at 800-927-4357 at insurance.ca.gov if they believe their insurance company is in violation of this law, or have additional claims-related questions.

To provide additional stability for communities near the wildfires, Commissioner Lara also issued a Notice calling on all insurance companies to stop any pending non-renewals or cancellations for any properties located near wildfires, if they are not already protected by the mandatory moratorium. This includes non-renewals issued up to 90 days prior to January 7, but taking effect after the start of the wildfires. This pause on non-renewing and cancelling policies would last six months as impacted communities begin the recovery process. In addition, Commissioner Lara called on insurers to offer beyond the 60-day grace period under existing law for policyholders in the immediate affected wildfire areas, to pay their home insurance premiums given the challenges that many policyholders in these areas are having right now.

Final piece of Commissioner’s Sustainable Insurance Strategy now in effect to address stability of marketplace

Commissioner Lara also announced that the final element of his Sustainable Insurance Strategy is now in effect and enforceable, marking the state’s largest insurance reform in 30 years. The new Net Cost of Reinsurance in Ratemaking Regulation requires insurance companies — for the first time — to increase coverage in high-risk areas, ensuring more options for Californians while limiting the costs passed on to consumers. The regulation works hand-in-hand with other reforms that Commissioner Lara has spearheaded that will have the effect of maintaining and increasing insurance coverage options for Californians across the state.

Under the regulation, insurance companies using reinsurance costs must increase coverage in wildfire-prone regions, ensuring they write policies for at least 85% of their statewide market share, with annual increases until the threshold is met.

“Californians deserve a reliable insurance market that doesn’t retreat from communities most vulnerable to wildfires and climate change,” said Commissioner Lara. “Our reforms will be critical in the wake of the devastating wildfires for restoring insurance availability for Californians statewide.”

The Sustainable Insurance Strategy is a comprehensive package of reforms aimed at creating a sustainable insurance market to withstand the effects of climate change and extreme wildfires and is necessary to get the state’s insurance marketplace back on track, especially in the wake of the devastating Southern California wildfires.

Commissioner-led actions announced to speed recovery and prevent fraud

Since these wildfires started, Commissioner Lara has taken multiple actions to speed recovery and prevent fraud including:

Insurance support workshops: Commissioner Lara announced free two-day insurance support workshops on January 18 and 19 in Santa Monica and January 25 and 26 in Pasadena to help survivors understand their insurance policies and the claims process, while also providing information about available resources for rebuilding and recovery. These workshops are open to all those impacted by the recent wildfires. Call 800-927-4357 to schedule a one-on-one appointment with a Department of Insurance expert.

Protecting Access to Medically Necessary Health Care and Medication: Issued a Notice directing companies to submit emergency plans detailing how they will ensure continued access to medically necessary health care services, including prescription drugs, for the duration of the declared State of Emergency due to the Palisades, Eaton, and other fires.

Cracking Down on Fraud: Commissioner Lara is sending the Department’s enforcement team to safeguard Angelenos from fraudsters who are targeting wildfire survivors and issued a warning against illegal activities including soliciting by public adjusters for seven days after evacuation orders end.

Alerting Residents to Evacuation Benefits: Many consumers are unaware that they may have coverage under their homeowners’ and renters’ insurance policies to help them with evacuation and recovery expenses. Commissioner Lara reminds residents in Los Angeles County who have been ordered to evacuate due to the wildfires that their homeowners’ or renters’ insurance may help with evacuation and relocation costs under Additional Living Expenses coverage, known as ALE. ALE coverage typically includes food and housing costs, furniture rental, relocation and storage, and extra transportation expenses, among other costs.

California — Insurance Fraud in Wildfire Zones: Insurance Commissioner Ricardo Lara and Los Angeles County District Attorney Nathan Hochman announced a rapid response effort to prevent and prosecute insurance fraud targeting wildfire survivors. The partnership focuses on raising awareness, prosecuting fraud, and equipping survivors with tools to navigate recovery safely.

“Scammers exploit vulnerable times, preying on survivors with false promises and fraudulent schemes,” said Commissioner Lara. “We’ve seen this in past wildfires. By partnering with the Los Angeles County District Attorney’s Office, we’re amplifying protections for wildfire victims and empowering consumers to protect themselves. My Department is committed to guiding you with resources to make informed decisions and avoid scams.”

“Our Office’s fraud-fighting prosecutors have a message for scammers: You will not get away with impersonating insurance companies in order to steal from wildfire victims in Los Angeles County,” said Los Angeles County District Attorney Nathan Hochman. “Our Office is on high alert for insurance scams and we will relentlessly pursue and seek the maximum punishment for the criminals who seek to exploit the victims of the LA County fires. I would like to thank Commissioner Ricardo Lara for his partnership in standing up for LA County fire victims during this ongoing disaster and as we prepare for recovery. Insurance fraud will not be tolerated under any circumstances.”

Disaster Assistance Response Team (DART) Deployed

Commissioner Lara has deployed the Department of Insurance’s Disaster Assistance Response Team (DART) to wildfire-affected areas to protect survivors from scams and fraud. In coordination with the Contractors State License Board and other state agencies, DART educates residents about their rights, checks contractor and vendor licenses, and ensures compliance with state regulations.

As survivors begin recovery, DART provides essential guidance to help homeowners understand their insurance coverage, identify legitimate contractors, and comply with key regulations, such as the seven-day ban on public adjusters soliciting business after disaster areas reopen.

The Los Angeles County District Attorney’s Office’s Fraud & Corruption prosecutors work closely with county and state agencies to hold individuals and businesses accountable for fraud, including insurance, public benefits, and charitable donation scams. The Office recovers millions of dollars in restitution annually from bad actors. Penalties for fraud can also include fines and time in jail or prison.

Statewide Efforts to Prevent Fraud

California's Department of Insurance has a proven record of combating fraud. Since 2019, the Department has provided over $550 million in funding to District Attorney offices statewide, including $116 million to Los Angeles County, to support local investigations and prosecutions of insurance fraud. This includes $14.5 million for the 24-25 fiscal year.

In previous wildfires, the Department arrested individuals engaged in fraud, including one case where a person falsely posed as legal counsel, filed fraudulent smoke and ash claims, and pocketed settlement checks.

To address common scams like public adjuster fraud, Commissioner Lara issued a Notice reminding public adjusters to adhere to strict laws governing their conduct. Survivors should carefully review adjuster contracts, understand fees—typically a percentage of the insurance claim—and verify the adjuster’s license on the Department’s website.

What’s Next

Commissioner Lara is hosting free two-day insurance support workshops on January 18 and 19 in Santa Monica and January 25 and 26 in Pasadena to help survivors understand their insurance policies and the claims process, while also providing information about available resources for rebuilding and recovery. These workshops are open to all those impacted by the recent wildfires. Call 800-927-4357 to schedule a one-on-one appointment with a Department of Insurance expert.

The Department has resources for disaster survivors and strongly encourages consumers to check out these resources, including how to avoid scams after a disaster as there is often unscrupulous individuals who try and take advantage of disaster survivors who can be vulnerable during a challenging time. Consumers who have questions on their insurance or wish to file a complaint against a public adjuster can do so on the Department’s website or by calling 800-927-4357.

The Department urges consumers to check the public adjuster’s license and make sure they are properly licensed and in good standing by visiting the Department’s website or by calling 800-927-4357. Also homeowners’ should be sure to check the contractor’s license with the Contractors’ State License Board.

Source link: California Department of Insurance — https://bit.ly/4jo77PK

California — The New 2025 Annuity Eight-Hour Training Course is Available: The new 2025 annuity training course is now available. Click this link to access information: https://bit.ly/4jnt2qi

Nevada — Nevada’s Insurance Reforms Worry RIMS: A new report from the Risk and Insurance Management Society (RIMS) titled RIMS Legislative Review: Exploring Nevada’s ‘Defense Within Limits’ Laws notes that some of those reforms could impact the state’s professional liability insurance market.

It was authored by Katherine Henry, a member of the RIMS Public Policy Committee, with support from Aaron Campbell, an associate at Bradley.

The three concerns are:

• Higher insurance costs that could be passed onto consumers
• A potential exit of insurers from the Nevada market
• Difficulties for insurance buyers who operate around the country

Source link: Insurance Business America — https://bit.ly/4hkS5Za

Oregon — Oregon joins $80 million enforcement action against Block Inc., CashApp for Bank Secrecy Act violations: The Oregon Division of Financial Regulation (DFR) and 47 state financial regulatory agencies have taken coordinated action against Block Inc., for violations of the Bank Secrecy Act (BSA) and anti-money laundering (AML) laws that safeguard the financial system from illicit use.

More than 50 million consumers in the U.S. use CashApp, Block’s mobile payment service, to spend, send, store, and invest money.

In the multistate settlement signed this week, Block agreed to pay an $80 million penalty to the state agencies, hire an independent consultant to review the comprehensiveness and effectiveness of its BSA/AML program, and submit a report to the states within nine months. Block then will have 12 months to correct any deficiencies found in the review after the report is filed.

“Oregon continues to work alongside other states to protect consumers and hold companies accountable,” said TK Keen, DFR administrator. “This settlement reinforces our commitment to safeguarding the financial system and ensuring compliance with laws designed to prevent illicit activity.”

The settlement was the result of a multistate examination to determine Block’s compliance with applicable state and federal laws and regulations. Block worked cooperatively with the state regulators throughout the examination.

Under BSA/AML rules, financial services firms are required to perform due diligence on customers, including verifying customer identities, reporting suspicious activity, and applying appropriate controls for high-risk accounts. State regulators found Block was not in compliance with certain requirements, creating the potential that its services could be used to support money laundering, terrorism financing, or other illegal activities.

Through a strong, nationwide regulatory framework, state financial regulators license and serve as the primary supervisor of money transmitters. States license more than 700 money transmitters. To protect consumers and enforce safety and soundness requirements, state regulators regularly coordinate supervision of multistate firms and, when necessary, initiate enforcement actions. This coordination – networked supervision – supports consistency and collaboration, while preserving the authority of individual states to take direct action. Additional information on the state regulatory framework for money transmission can be found here.

State financial regulators license and supervise more than 34,000 nonbank financial services companies through the Nationwide Multistate Licensing System, including mortgage companies, money services businesses, consumer finance providers, and debt collectors. Oregon residents who have questions about the enforcement action should contact DFR’s consumer advocates at 888-877-4894 or email dfr.financialserviceshelp@dcbs.oregon.gov. Residents can also visit NMLS Consumer Access to verify that a company is licensed to do business in Oregon.

Washington — An interview with new insurance commissioner, Patty Kuderer: To hear the interview, click this link: https://bit.ly/40J8JMN

Washington — Insurance Commissioner Patty Kuderer announces additions to executive staff: Washington state Insurance Commissioner Patty Kuderer announced six additions to her executive staff on Friday. Kuderer was sworn in as the Evergreen State’s ninth insurance commissioner on Wednesday.

The new staff members joining the Office of the Insurance Commissioner (OIC) include:

    Andrew Davis, Deputy Commissioner for Consumer Protection

    Tanya Lavoy, Deputy Commissioner for Public Affairs

    Larry Robinette, Tribal Liaison

    Tom Zuvela, Chief Financial Officer

    Sam Gutierrez, External Communications Manager

    Alissa Julius, Executive Assistant to the Commissioner

“I couldn’t be happier to bring these talented team members with me to the Office of the Insurance Commissioner,” Kuderer said. “I’m excited to work alongside them in protecting the people of Washington and improving the insurance market for everyone.”

Davis most recently worked as Travelers Insurance’s in-house legal counsel. He was previously a Property and Casualty Policy Advisor with the OIC, where he participated in rulemaking teams, drafted rules and legislation, and served as the co-chair of the OIC’s Diversity, Equity, and Inclusion (DEI) Council. Before that, he worked in claims management and compliance at Allstate Insurance and managed complex liability claims for Progressive Insurance.

Lavoy joins the OIC from the Washington State Senate where she spent over six years working for now-Commissioner Kuderer. While at the Senate, she was part of the employee bargaining team that successfully negotiated the first contract for the newly formed WPEA legislative staff union. She holds an MPA from the Evergreen State College.

Robinette, an enrolled member of the Colville Confederated Tribes, has over 20 years of experience in Tribal relations, program management, and policy advocacy. He led the Senior Wellness Program for the Colville Confederated Tribes, where he achieved a 60% compliance improvement and served over 3,000 participants and earned recognition as Tribal Program of the Year.

Zuvela has 10 years of experience in accounting, financial and business analysis across the public, private and non-profit sectors. Most recently, he worked for the University of Washington across multiple departments including UW-IT and the UW Finance Transformation program, where he supported the implementation of Workday Finance across the University.

Gutierrez served now-Commissioner Kuderer during her tenure in the senate. His background in political and community organizing, as well as agency rebranding, have put him to work at all scales from university boards and national nonprofits to campaigns for local, state house, and president.

Julius has worked for the State of Washington since 2018, with the Liquor and Cannabis Board, Results Washington, and most recently as deputy scheduler to Governor Jay Inslee.

Charles Malone, who previously served as Deputy Commissioner for Legal Affairs in the OIC, had been previously announced as Kuderer’s Chief Deputy Commissioner.