Around the PIA Western Alliance States – Week of September 23, 2024
Published September 24, 2024 at 11:21 AM · News Releases and Bulletins
California — Commissioner Lara orders insurance protections for 750,000 in Southern California following major wildfire emergencies: Insurance Commissioner Ricardo Lara issued a mandatory one-year moratorium on insurance companies to preserve residential insurance coverage for approximately 750,000 policyholders affected by the Airport, Bridge, and Line fires located in the counties of Orange, Riverside, Los Angeles, and San Bernardino. The Commissioner’s Bulletin shields those living within the perimeters or adjoining ZIP Codes of these fires from insurance non-renewal or cancellation for one year from the date of the Governor’s emergency declarations regardless of whether they suffered a loss.
“By law, I am able to place moratoriums on insurance company homeowners cancellations and non-renewals in areas stricken by wildfires. This creates much-needed breathing room for homeowners while my Sustainable Insurance Strategy takes effect,” said Insurance Commissioner Ricardo Lara, who has protected nearly 5 million people under the law since 2019. “Wildfire survivors should not have to worry about insurance while they are recovering. This temporary protection also will help calm fears and stabilize the market while the reforms we are making this year are implemented.”
Commissioner Lara’s ability to issue these moratoriums is a result of a California law that he authored in 2018 while serving as a state senator in order to provide temporary relief from insurance non-renewals and cancellations to residents living within or adjacent to a gubernatorial-declared wildfire disaster.
The Department of Insurance is deploying staff to wildfire disaster areas to assist survivors in filing claims and protect communities from potential insurance fraud and abuse. Consumer services experts are available in-person to answer questions at Local Assistance Centers. Visit the Department’s website to find information about Local Assistance Centers near you and view the Top 10 Tips for wildfire claimants to avoid becoming a victim of a scam, or call 800-927-4357 with any insurance-related question.
Since 2019, Commissioner Lara’s actions have protected nearly 5 million homeowners. Today’s order protects approximately 750,000 policyholders in 91 ZIP Codes for one year. That includes approximately 170,000 policies for the Line Fire in San Bernardino County, effective September 7, 2024, and 580,000 policies for the Airport Fire in Orange and Riverside counties and the Bridge Fire in Los Angeles and Riverside counties, effective September 11, 2024. Consumers who were non-renewed prior to the emergency declaration date and are unable to obtain insurance or are dissatisfied with their current coverage should contact the Department of Insurance for assistance in shopping for insurance. Earlier this year, the Department protected 185,000 residents of Central and Northern California affected by multiple fires across four counties – for a total of nearly 1 million policies under moratorium in 2024.
Consumers can go to the Department of Insurance website to see if their ZIP Code is included in a moratorium. Consumers should contact the Department of Insurance at 800-927-4357 or via chat or email at insurance.ca.gov if they believe their insurance company is in violation of this law, or have additional claims-related questions.
Hawaii — Work Comp Dividend: Hawaii Employers’ Mutual Insurance Company (HEMIC) has issued a $5 million dividend for policyholders qualified to receive one. It is the largest in the company’s history. The $5 million brings the total the company has returned to policyholders since 2007 to $53 million.
HEMIC covers nearly 7,000 businesses and 75,000 workers across the Hawaiian Islands.
Source link: Business Insurance — https://bit.ly/3XVVczS
Oregon — All entities regulated under the Oregon Insurance Code: The Oregon Division of Financial Regulation (DFR) proposes to issue the attached bulletin regarding general filing instructions for filing policy forms and rates.
Purpose:
The purpose of this bulletin is to provide guidance on filing rates and forms with the Division of Financial Regulation and replaces Oregon Insurance Division Bulletin 2006-5.
Public comments requested:
Public comment will be accepted for 30 days. Please submit public comment to DFR.Bulletin@dcbs.oregon.gov.
Last day for public comment: Friday, October 18, 2024. Comments must be received by 5 p.m.
Click here to review proposed bulletin:
Washington — Insurer Holding Company Act (R 2024-04): We adopted the Implementation of SB 6027 (Chapter 42, Laws of 2024) Insurance Holding Company Act rule (R 2024-04) on September 17, 2024. The rule takes effect on October 18, 2024. The rule aligns Washington’s Insurer Holding Company Act (Ch. 48.31B RCW) with the updated National Association of Insurance Commissioners model authorities on this topic.
For more information, including the adopted rule (CR-103) and the concise explanatory statement, please visit the Insurer Holding Company Act (R 2024-04) webpage.
Washington — Kreidler orders 911-Dry to stop waiving deductibles: Washington state Insurance Commissioner Mike Kreidler has ordered 911-Dry LLC to stop offering to pay customers’ insurance deductibles.
The general contractor, based in Bellingham, provides loss and mitigation services on claims made under insurance policies. The 911-Dry website states the company processes claims on behalf of customers, advertises direct insurance billing, and offers up to $2,500 in “deductible assistance.”
The cease-and-desist order, issued on Sept. 19, requires 911-Dry to stop its practice of “waiving, rebating, giving, paying, or offering to waive, rebate, give, or pay all or any part of a Washington claimant’s casualty or property insurance deductible.”
Deductible assistance is illegal under the state insurance code, which bars service providers from waiving or rebating any part of a customer’s casualty or property insurance deductible.
Why require deductibles?
Despite what a contractor — or auto repair shop, or any professional processing your insurance claim — may say or offer, the policyholder must pay the deductible on their claim.
Insurance companies pay claims based on the cost of the repair, minus the deductible. If a contractor or repair shop offers to waive or pay a deductible, they may be trafficking in insurance claims. This illegal practice can result in inflated claims — to offset the waived deductible — and can entice consumers to use certain service providers for reasons other than the quality of the services that will be provided.
“If it sounds too good to be true, it probably is,” Kreidler said. “A company offering to waive a deductible, or even part of a deductible, could be sending false information to your insurance company about repair costs or making up the difference with cheaper products.”
Washington — Palliative Care Benefit Work Group Meeting October 23, 2024: The OIC is convening a meeting of the Palliative Care Benefit Work Group on Wednesday, October 23, 2024, from 2:00-3:30 pm PT through Zoom. We invite interested members of the public to attend the meeting by registering in advance. The Washington State Legislature has directed the OIC to convene a work group to design the parameters of a palliative care benefit and payment model for fully insured health plans. For more information, please visit the Palliative care benefit work group’s webpage.