Around the PIA Western Alliance States – Week of October 27, 2025

California —  Commissioner Lara takes action to protect California’s federal workers during government shutdown: As the federal government shutdown enters its fourth week, Insurance Commissioner Ricardo Lara is stepping up to safeguard California workers from losing their insurance coverage due to financial strain. He has issued a formal notice urging insurance companies to promptly implement protective measures for policyholders who depend on federal funding.

This action impacts approximately 160,000 civilian workers who, by law, could face cancellation or non-renewal of home, health, or other types of insurance if they are unable to pay premiums on time since the shutdown began on October 1. It also extends to small businesses and others affected by interrupted federal contracts and grants.

“Nobody should lose their health or home coverage because of Congress's ongoing inaction, especially during the current insurance crisis and challenging market conditions in our state,” said Commissioner Lara. “The federal government shutdown has serious consequences for Californians who are already struggling to find coverage and affordable options. It is crucial for us at the state level to take every possible measure to protect our civil servants and those who rely on federal funds during this leadership crisis and neglect of duty.”

Commissioner Lara’s notice requests that insurance companies provide the following measures for affected policyholders:

Grace Periods: Postponing or withdrawing any previous notice of cancellation or non-renewal issued after October 1 due to non-payment of premiums. The notice requests that insurance companies maintain coverage in cases of unpaid premium for at least 30 days or for the duration of the federal shutdown, whichever is longer.

Waiver of Late Fees and Penalties: Eliminating late fees and penalties associated with late payments.

Extension of Claims and Underwriting Deadlines: This includes extending deadlines for submitting sworn proof of loss or other claim forms, conducting examinations under oath, medical examinations, physical inspections of insured property, and meeting required repairs to comply with underwriting guidelines, among others.

California — Commissioner Initiates First-Ever Study on Fiscal Impacts of Health Coverage for Undocumented Californians: Insurance Commissioner Ricardo Lara has commissioned the School of Public Health at San Diego State University (SDSU) to conduct a comprehensive fiscal and economic impact study on California’s Medi-Cal coverage and Covered California expansions for undocumented Californians.

The study will quantify and analyze the financial impacts of these expansions by:

Evaluating how increased access to healthcare affects utilization, spending, financing, and labor market outcomes in California.

Providing policymakers with essential insights into the net fiscal impacts—whether cost-saving, cost-neutral, or more costly in both the short and long term—for individuals, employers, and the state as a whole.

Informing future healthcare policy discussions.

"In an era of constant misinformation, it is imperative to provide data rooted in rigorous, independent analysis rather than politics or partisanship," said Commissioner Lara. "By partnering with one of our leading public research universities, this independent study will be vital for fiscal decision-making in Sacramento, especially as vulnerable communities often face cuts during budget crises. Rather than avoiding this issue, I want to confront it directly with real answers, not rhetoric, to guide policymakers and the next governor with factual data for informed decision-making."

The Department of Insurance chose SDSU’s School of Public Health within the College of Health and Human Services to lead this study due to its nationally recognized expertise in public health, healthcare policy, and advanced economic modeling. The school has a proven track record of translating research findings into actionable recommendations benefiting communities in California and beyond.

“This study offers an important opportunity to understand how California’s expanded access to care has shaped the lives of residents and the state’s health system,” said Wilton Choi, assistant professor of health economics at SDSU and principal investigator of the commissioned study. “Our goal is to provide a clear, evidence-based picture that can help inform future decisions and policy discussions at the legislative level.”

The SDSU research team will employ advanced modeling tools and data integration techniques—including tax simulation models and economic impact models—that are typically unavailable within legislative or state budget offices. These methods will enable the study to extend beyond basic cost estimates, providing a comprehensive view of how expanded healthcare coverage impacts state and local economies, healthcare spending, and household finances.

This study represents the first thorough evaluation of California’s Medi-Cal expansions to include all income-qualified residents, regardless of immigration status. It will provide the first empirical assessment of the effects of these policies since their implementation at the state level, examining changes in health insurance coverage, costs, healthcare service utilization, financing and payments, as well as labor market participation and employment since the phased expansion began in 2016.

The results will establish a neutral, evidence-based foundation for understanding the costs and impacts of these expansions, informing future decisions regarding healthcare access and financing in California.

Work on the study will commence this year, with completion anticipated in 2027.

Idaho — Spanish testing now available for producer licensing: Starting on July 27, 2025, the Idaho Department of Insurance’s testing vendor Pearson Vue began offering the Idaho resident licensing exam in Spanish. When signing in to take their resident licensing exam, test takers will be given the opportunity to request their exam in English or Spanish.

The Idaho Department of Insurance is always looking for way to improve customer service and having the vendor add the ability to offer the Idaho Resident License Exam in Spanish is just one of those ways.

For questions, please call the licensing department at 208-334-4339.

Oregon — October is Cybersecurity Awareness Month is a good reminder to protect your business from cybercriminals: October is Cybersecurity Awareness Month and the Oregon Division of Financial Regulation (DFR) reminds everyone that cybersecurity is a hot topic for the insurance sector today and a growing concern for many businesses.

Cybersecurity Awareness Month is a collaborative effort led by the Cybersecurity and Infrastructure Security Agency (CISA), uniting the public and private sectors to encourage behaviors that reduce online risks. The campaign emphasizes that fundamental actions can make a big difference in defending our nation against cyber threats and protecting our critical infrastructure.

Businesses, large and small, should consider cyber insurance as part of their risk management process. Cybersecurity is a risk that all insurance carriers should take seriously from an operational resilience perspective, as cybersecurity events can disrupt your business, costing you money.

Most commercial property and general liability policies do not cover cyber risks, and cyber insurance policies are highly customized for clients. Insurers and insurance producers must protect the highly sensitive consumer financial, health and nonpublic personal information collected as part of the underwriting and claims processes. Reports show that sectors such as health care and financial services are experiencing higher cybersecurity incidents and claim costs, partially due to the data they manage.

CISA has tips to protect your business. Cybercriminals look for easy targets. Businesses without basic precautions are vulnerable. Start with these four essential steps to safeguard your data and enable employees to stop attacks before they happen:

1.     Teach employees to avoid phishing: Phishing tricks employees into opening malicious attachments or sharing sensitive information. Train employees to recognize and report suspicious activity.

2.     Require strong passwords: Strong passwords are a simple but powerful way to block criminals from accessing your accounts through guessing or automated attacks. Make them mandatory for all users.

3.     Require multifactor authentication (MFA): MFA – also known as two-factor authentication – adds an extra layer of security beyond passwords. Require it to make accounts significantly more secure. Use phishing resistant MFA where available.

4.     Update business software: Outdated software can contain exploitable flaws. Promptly install security updates and patches to keep your systems protected.

CISA also recommends businesses back up all their business data and encrypt it. Encrypting your data and devices strengthens your defense against attacks. Even if criminals gain access to your files, information stays locked and unreadable. Make encryption part of your security strategy.

“We see a complicated landscape in cybersecurity, which remains a priority for us,” said TK Keen, DFR administrator and acting insurance commissioner. “We are seeing increasing calls for legislation nationwide and regulation for enhanced cybersecurity measures to address risks including identity theft, business interruption, data repair costs, and more.”

More companies are entering the market each year. According to the most recent report on the Cyber Insurance Market from the National Association of Insurance Commissioners, issued in fall 2024, shows a cyber insurance market of roughly $9.84 billion in direct written premiums.

The U.S. cyber insurance market accounts for 59 percent of the $16.66 billion in premiums written for cyber coverages globally in 2023. This indicates a growing demand for cyber insurance coverage. The number of claims has also gone up with more than 33,000 in 2023. This increase reflects the rising frequency of cyber incidents.

Oregon — To all carriers issuing property & casualty products in Oregon: The Division of Financial Regulation’s Property & Casualty Product Regulation Team has made updates to the product standards checklists for Inland Marine and Boiler & Machinery/Mechanical Breakdown property & casualty products. We are sharing these with our industry partners, seeking comments prior to making them official, and would appreciate feedback. We are providing 15 days for comment, after which, we intend to implement these changes or address any issues brought forward. The deadline for comment will be Thursday, November 6, 2025 at 5:00pm PST.

DFR is requesting industry comments and feedback on planned revisions to the following product standards:

3617-Boiler-Machinery-DRAFT-version.pdf

3627-Personal-Commercial-Inland-Marine-DRAFT-version.pdf

Please forward all feedback directly to:

Eric Bredeson

Property & Casualty Product Regulation Manager

Division of Financial Regulation

Eric.bredeson@dcbs.oregon.gov

Oregon — DFR asking financial and insurance-related businesses to provide relief to those affected by federal government shutdown: The Oregon Division of Financial Regulation (DFR) has issued two bulletins encouraging insurance companies, health care service contractors, state-regulated financial institutions, and other entities providing financial products to take measures to help people affected by the federal government shutdown.

The federal government shutdown began Oct. 1 and will continue until Congress passes a continuing resolution or other funding measure. According to the Oregon Employment Department (OED), there are approximately 30,000 workers on the federal payroll in Oregon; OED estimates 10,000 were affected by the lapse in appropriations as of Oct. 1. These employees may be either furloughed or, in some instances, required to work without pay. In either case, although back pay may eventually be available, many affected Oregon residents will likely experience at least temporary financial hardship through no fault of their own.

DFR is providing guidance to state-regulated entities to make reasonable accommodations to mitigate the adverse effects of the shutdown on Oregon residents.

“We encourage entities regulated under our jurisdiction to take active measures to provide help to their customers and policyholders that are directly affected by the federal government shutdown,” said TK Keen, DFR administrator and acting insurance commissioner. “All accommodations provided should comply with all applicable state and federal statutes and regulations.”

DFR has requested steps that include providing grace periods to premium payments, providing more time to file insurance claims, allowing more time for repayment of debts, waiving late payment penalties, postponing foreclosure actions and evictions, and negotiating with consumers to arrive at solutions under the current circumstances.

The bulletins are located on DFR’s website.

“We know the shutdown has affected thousands of families in Oregon and we are asking our regulated entities to give some grace to those who have no control over the situation they are currently in,” Keen said.

If you have questions or need to talk with one of our consumer advocates, call 1-888-877-4894 (toll-free) or send an email to dfr.insurancehelp@dcbs.oregon.gov or dfr.financialserviceshelp@dcbs.oregon.gov.

Oregon — All entities regulated under the Oregon Insurance Code: The Oregon Division of Financial Regulation has issued a bulletin regarding providing relief and assistance to individuals affected by the federal government shutdown.

Purpose

This bulletin encourages insurance companies, health care service contractors, and other entities regulated under the Oregon Insurance Code to take active measures to help individuals affected by the federal government shutdown, including but not limited to federal employees subject to furlough or required to work without pay. This includes providing grace periods and flexible options for payments, fees and deadlines, as well as providing proactive customer service to affected policyholders.

Guidance

The division encourages entities regulated under the Oregon Insurance Code to take active measures to provide help to their customers and policyholders that are directly affected by the federal government shutdown. All accommodations provided should comply with all applicable state and federal statutes and regulations.

Click here to review this bulletin:

https://bit.ly/4hv2Mtn

Oregon — Oregon DFR joins others states in settlement against E Mortgage for unlicensed activity: The Oregon Division of Financial Regulation (DFR) has reached a multi-state settlement with E Mortgage Capital, which is based in Irvine, Calif., resolving allegations of unlicensed lending activity and other violations.

Oregon joined Hawaii, Idaho, and Texas in the multi-state settlement agreement, which imposed fines totaling $669,000.

In their examinations, mortgage regulators determined E Mortgage allowed unlicensed mortgage loan originators (MLOs) in their states to originate and earn commissions on 50 different transactions. Idaho and Texas officials also claimed unlicensed loan processors performed functions that should have been prohibited in their states in over 125 instances.

Additionally, Oregon regulators determined that E Mortgage’s remote work-from-home plan lacked adequate inspections and insufficient supervision of MLOs. There were 27 instances in Oregon where E Mortgage engaged in a remote work-from-home plan that was insufficient to adequately inspect remote work locations. Participating states view this as having an inadequate supervision plan and supervision of MLOs.

Regulators also found E Mortgage, in the years 2021, 2022, and 2023, engaged in unlicensed activity by allowing unlicensed MLOs to conduct origination activity. E Mortgage paid these unlicensed MLOs commissions when the MLOs were not licensed to originate loans in the participating states. Each state’s number of violations were Hawaii (7), Idaho (16), Oregon (13), and Texas (14).

The participating regulators determined that E Mortgage failed to cooperate or respond to examiners’ request for information and refused to provide examiners access to its Loan Origination System.

The company agreed to cease mortgage originations coming via unlicensed loan officers and processing activity involving ineligible employees.

“Protecting Oregon consumers means ensuring mortgage companies play by the rules,” said TK Keen, DFR administrator. “When firms fail to supervise their employees or cooperate with examiners, we take action to safeguard consumers and the integrity of the lending system.”

Washington — 2026 OIC Legislative Preview: Washington state Insurance Commissioner Patty Kuderer invites you to attend the OIC Legislative Preview on Dec. 3, 3-4 p.m. in the Legislative Building’s Columbia Room.

Commissioner Kuderer and OIC staff will provide a preview of 2026 agency request legislation along with an overview of the work of legislatively directed studies and work groups during 2025.

This will be a hybrid event. More event information and an agenda will be shared soon.

Washington — Podcast: Open enrollment and premium tax credits with the Health Benefits Exchange: Open enrollment for the individual health insurance market starts November 1, and the federal government shutdown is bringing a little uncertainty to the shopping experience.

Listen to the episode

On this episode of the OIC Answers podcast, Washington Health Benefits Exchange CEO Ingrid Ulery joins Insurance Commissioner Patty Kuderer to talk about whether a podcast host really needs health insurance, what open enrollment is all about, and the benefits of shopping on wahealthplanfinder.org.

Then, the discussion turns to the enhanced premium tax credits, the debate on the national level around keeping them, what losing them means for the 300,000 Washingtonians who buy their plans on the Exchange, and what happens to rates and premiums if the tax credits are extended after the start of open enrollment.

OIC Webpage — https://bit.ly/42Zdp1J

Spotify — https://bit.ly/4ntY8x8

Apple podcast — https://bit.ly/4oGMa4g

Washington — R 2025-08 title insurance educational programs proposed rule posted: We have released the proposed rule language on R 2025-08. The rule considers amending WAC 284-29-205, WAC 284-29-220, and WAC 284-29-235. The anticipated effects of these amendments are to: 1) Create a clear definition of “educational program;” 2) Amend the definition of “give” to be more in line with common usage of the term; and 3) Align rules concerning title companies sponsoring educational programs for trade associations with rules concerning sponsorship of educational programs for other types of entities.

We scheduled a public hearing on the rule:

When: December 1, 2025, at 1:00 PM

Where: Virtual (Zoom), please register in advance.

Comments on the proposed rule language can be submitted from October 21, 2025 to December 2, 2025 at 11:59 p.m. Please send them to rulescoordinator@oic.wa.gov.

For more information, including the proposed rule language (CR-102), please visit the rule's webpage.

Washington — Captive insurer regulatory updates R 2025-14: We are starting rulemaking R 2025-14 on captive insurers to implement passed legislation and make changes to reporting requirements. This rule would change captive insurer audited financial statement annual reporting deadlines, clarify reporting requirements, and implement House Bill 1842, which allows public utility districts to form, own, or use captive insurers.

The comment period for this rule began on October 21, 2025, and will close on November 10, 2025 at 11:59 p.m. Please send them to rulescoordinator@oic.wa.gov.

For more information, including the proposed rule language (CR-101), please visit the rule's webpage.