Around the PIA Western Alliance States – Week of July 14, 2025

Hawaii — The stressed Condo Market: On July 1st, Senate Bill 1044 went into effect. It lets the Hawaii Property Insurance Association (HPIA) and the Hawaii Hurricane Relief Fund (HHRF) to give coverage to high-rise condos and other types and classes of property that haven’t been able to secure insurance in the private market.

The reason behind the bill is premiums skyrocketing for High-rise and aging buildings.

Source link: Insurance. Business America — https://bit.ly/4kF9fSs

Idaho — Rate of Interest on Deferred Payment of Cash Surrendered Benefits, Effective July 1, 2025: Idaho Code §§ 41‑1927(3) and 41‑1927A(3)(b) permit an insurer to defer the payment of any cash surrender value under a life insurance policy or individual deferred annuity when payment of the surrender value is requested by the policyholder with surrender of the policy.  If payment of the surrender value is deferred, the same code sections require that the insurer pay interest to the policyholder.  Non-tender of payment of the surrender value within 30 days of a request therefore is considered an election by the insurer to defer payment. The thirty-day period begins on the date the request was received by the insurer or its authorized agent or representative.

Effective July 1, 2025, insurers must pay a minimum interest rate of 9.125% on deferred payment of cash surrender values, pursuant to Idaho Code §§ 41‑1927(3) and 41‑1927A(3)(b). The 9.125% interest rate is computed in accordance with Idaho Code § 28‑22‑104(2) and is effective from July 1, 2025, through June 30, 2026. The Idaho State Treasurer announces a new rate on or about July 1st of each succeeding year. The rate calculation can be reviewed at the State Treasurer’s website: https://sto.idaho.gov/Reports/Legal-Rate-of-Interest.

This Bulletin is not new law but is an agency interpretation of existing law, except as authorized by law or as incorporated into a contract. Any questions regarding this Bulletin can be directed to Deputy Director Wes Trexler at 208‑334‑4214 or weston.trexler@doi.idaho.gov.

Montana — Wildfire Insurance Coverage & Practices: The Montana Insurance Department is going to look at how property insurance companies are making coverage decisions. Concerns are that insurers are using risk to limit or deny policies in areas without recent wildfire activity.

Commissioner of Securities and Insurance James Brown said some policyholders and agents are complaining that insurers will not write or renew policies based on wildfire exposure. His concern is it violating the state’s insurance laws that don’t allow insurers to deny coverage based on a geographic risk unless there is a specific threat.

Source link: Insurance Business America — https://bit.ly/3TIJK82

Nevada — Commissioner Kipper Temporary Replacement: Nevada Insurance Commissioner Scott Kipper has left his office and Ned Gaines has been named acting commissioner. He has over 20 years experience including 12 years working at the Washington Department of Insurance.

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

New Mexico — Wildfire Insurance Change: Because of recent wildfires that destroyed over 1,400 structures, the New Mexico FAIR Plan has raised residential property coverage limits. The cap has risen from $350,000 to $750,000.

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

Oregon — AARP to host Interim Insurance Commissioner Keen on teletown hall event July 10: Interim Insurance Commissioner TK Keen will be a guest on AARP’s teletown hall on Thursday, July 10, to talk about a variety of insurance-related topics facing Oregonians in 2025. Topics will range from what types of insurance people should carry to long-term care insurance to rental and home insurance, along with other topics from people around the state.

The town hall will be virtual, but is live and callers can call in and ask questions. Keen also doubles as the administrator of the Oregon Division of Financial Regulation (DFR), which regulates not only the insurance markets, but also financial institutions, student and payday loans, pawn shops, and many other areas.

“I’m looking forward to coming on and helping explain the different types of insurance that is available to Oregonians,” Keen said. “We know seniors are often targeted for scams, or may not know everything that is available for them and I’m looking forward to providing more information.”

The town hall will take place at 2 p.m. on Thursday, July 10. People can listen live on AARP’s Facebook page or call in to ask questions at 855-962-1510. The event will last one hour.

DFR reminds all Oregonians if they believe they are not being treated fairly by their insurance company or financial institution, or may have been the victim of a scam, to contact one of our consumer advocates at 888-877-4894 (toll-free) or email dfr.insurancehelp@dcbs.oregon.gov.

Washington — More info on E2SSB 5686 (Foreclosure Prevention Fee): This message is is being sent on behalf of the Washington State Department of Commerce to share information about the new Foreclosure Prevention Fee as outlined in Section 8 of E2SSB 5686.

Frequently Asked Questions – Foreclosure Prevention Fee

Please note, the FAQ document is subject to change and more information will be added as necessary. Please refer to the link above for the most recent version. This link will also be available on the Department of Commerce's Foreclosure Fairness website under the “Foreclosure Prevention Fee” dropdown menu.

Detailed payment instructions and individualized payment agreement information will be available in the coming days with an additional announcement.

**Please share this information widely with your respective stakeholder groups**

Please do not hesitate to reach out with any question or concerns.

Washington — OIC Answers podcast: What does FEMA mean for my insurance?

OIC podcast logo

Media contact: Public Affairs, (360) 725-7055

The Trump administration has announced significant cuts to the Federal Emergency Management Agency are coming after the 2025 hurricane season. What’s that mean for Washington, and how does FEMA funding impact insurance? And how does the National Flood Insurance Program factor into the availability of flood coverage?

On this episode of OIC Answers, host Aaron VanTuyl welcomes on OIC Senior Policy Advisor David Forte and OIC Emergency Management Program Specialist Matt Stoutenburg to talk about what role FEMA plays in emergency management response situations, how grants from FEMA mitigate damage from extreme weather incidents, and what the loss of FEMA would mean for the National Flood Insurance Program and the availability of flood coverage in Washington state.

More OIC Answers

Listen on Apple Podcasts — https://bit.ly/4ePFX2t

Listen on Spotify — https://bit.ly/4kCXMTH

Washington — OIC staff recovers more than $100M for consumers in the 2023-25 biennium: Washington state Insurance Commissioner Patty Kuderer’s office recovered more than $100 million for consumers experiencing insurance issues during the 2023-25 biennium.

The Office of the Insurance Commissioner’s Consumer Advocacy Program closed out the biennium with $100,801,393.86 in recovered funds. That figure came from more than 200,000 consumer inquiries received and answered, though not every case involved a recovery; some inquiries are informational.

“Our mission is consumer protection and our staff is dedicated to helping Washingtonians solve their insurance issues,” Kuderer said. “The increased amounts we’re seeing year-over-year highlight how much the highlight both how important it is to have consumer advocates in your corner and why customers should reach out to the OIC when they have questions or disagree with a decision their insurer has made. I’m proud of my team and the work they do to assist Washington residents.”

CAP recovered $61.8 million in the 2021-23 biennium, $59.4 million in the 2019-21 biennium, and $30.5 million in the 2017-2019 biennium.

People contact CAP with questions or issues and, when appropriate, insurance experts reach out to insurance companies on people’s behalf. Some of the recoveries are in the millions and impact dozens of people, while the smallest recovery to date was $1.98.

The total “recovery” amounts include claim payments and premium refunds made to the consumer through CAP’s complaint resolution services.

The recent highlights include:

    CAP helped a health clinic receive payment under its fraud coverage, recovering $1.6 million after months of delays.

    Escalating concerns related to a stop-loss policy, which resulted in $1.5 million in medical claims paid out to Washington residents.

    A life insurer wrongly cancelled dozens of policies due to a system error, but thanks to a CAP expert’s determination, 69 policies were reinstated and $4.4 million in payments were made to deserving families.

The figure is a testament to CAP staff’s persistence in holding insurance companies accountable to their policyholders and commitment to standing up for Washington consumers, Kuderer said. She added that the amount recovered on behalf of consumers could be greater if her office had the authority to order restitution — which was part of legislation Kuderer requested last year and will be bringing back next year.

“The recovery totals are great, but holding the worst of the bad actors accountable by ordering them to repay the people they’ve harmed would provide even more protection,” Kuderer said. “Our CAP staff has had great results working with reputable insurance companies to encourage them to do right by their policyholders. The option to order restitution would ensure we could do the same with the insurance companies who won’t.”