Around the Western Alliance States - Week of May 19, 2025

California — Commissioner Lara announces new Smoke Claims & Remediation Taskforce: As California faces the aftermath of some of the worst wildfires in its history — urban conflagrations that have devastated entire neighborhoods and spread toxic soot and ash across wide regions — Insurance Commissioner Ricardo Lara today announced the formation of a new Smoke Claims & Remediation Task Force within the California Department of Insurance.

“For more than 30 years, California has lacked consistent statewide standards for investigating and paying smoke damage claims,” said Commissioner Lara. “The result is confusion, delays, and families forced to return to unsafe homes. Consumers are angry and rightly so. Californians deserve better — and this Task Force will help us create lasting solutions.”

While the state has faced major wildfires before — in places like Santa Rosa and Paradise — today’s smoke impacts are broader and more complex, reaching deeper into urban areas than ever before. California has never experienced smoke damage of this scale, across such a large and densely populated region.

In March, Commissioner Lara issued a formal Bulletin requiring insurers to fully investigate and pay legitimate smoke damage claims. He also sent a directive to the California FAIR Plan — the state’s insurer of last resort — requiring it to follow the same standards. Yet for decades, there have been no clear or consistent statewide protocols for how insurers should handle smoke-related losses.

The new Task Force will bring together public health experts, environmental health professionals, smoke remediation specialists, fire safety experts, and consumer advocates to recommend science-based standards, best practices for smoke restoration of homes and personal property, and enforcement tools to the Department that ensure Californians are treated fairly in the wake of wildfire smoke exposure.

As climate change accelerates the frequency and scale of wildfires, smoke impacts are becoming more severe and widespread — reaching far beyond burn areas and affecting entire neighborhoods downwind from major fire events. Some residents have reported being denied smoke claims outright or were required to clean visible damage themselves before their claims would even be considered.

“Smoke damage is real damage,” said Commissioner Lara. “This is about health, safety, and equity. Californians shouldn’t be forced to scrub soot off their walls or breathe in contaminated air just to get the help they’re entitled to. We are taking action — not to chase headlines, but to pursue clear, science-driven standards that protect people and their property.”

The Smoke Claims & Remediation Task Force will be charged with:

Evaluating existing methods of best practices and recommending uniform standards for inspecting, testing, and remediating properties with smoke damage;

Recommending standards for determining whether structures damaged are below, at, or above, established levels for health and safety of occupants; and,

Determining which state and local government agencies must be involved in creating and enforcing these standards, including to mitigate the submission of fraudulent or exaggerated smoke claims.

Commissioner Lara is actively appointing Task Force members and will announce its membership in the coming weeks. The first convening will be scheduled thereafter.

The Department of Insurance can help consumers with insurance coverage or claim questions. Contact us at our consumer hotline at 800-927-4357 or through online chat or email at insurance.ca.gov.

Source link: https://bit.ly/3SdAEPS

Montana — Premium Tax Structure for Captives: Legislation passed by the Montana Legislature and signed into law by Governor Greg Gianforte will switch the state’s flat tax rate structure for captive insurers to a tiered premium tax system.

Starting December 31st of this year, premiums will be taxed at 0.4% for the first $20 million in premiums written. Anything above $20 million will be taxed at 0.3%. There is also a minimum tax of $5,000 for captive insurers.

Reinsurers will also face a tiered tax of 0.225% for the first $20 million. From that figure to $40 million the rate will be 0.15%. Anything beyond $40 million will be taxed 0.05%.

Source link: Insurance Business America — https://bit.ly/45mFK3V

Montana — Wildfire Risk Score & Insurers: The Montana Legislature has passed a bill that requires insurance companies to disclose detailed information on its wildfire risk score for residential properties it insures.

The idea is to increase transparency on how wildfire risk impacts property coverage.

The law says an insurance company has to disclose five pieces of information with consumers:

• The current wildfire risk score
• The full range of possible scores
• The name of the individual or company that determined the score
• The date the score was produced
• The factors that negatively impacted the score

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

Oregon — Health Benefit Plans Information: The Oregon Division of Financial Regulation has issued a bulletin regarding health benefit plan coverage of gender-affirming treatment under ORS 743A.325 and OAR 836-053-0441.

Purpose

The purpose of this bulletin is to provide supplemental guidance for health benefit plans regarding coverage of gender-affirming treatment under ORS 743A.325 and OAR 836-053-0441 to ensure consistent and uniform implementation of these requirements across the health insurance market. This bulletin supersedes Bulletin DFR 2024-2, which is withdrawn as of the effective date of OAR 836-053-0441 (January 1, 2025).

Director’s Guidance

Carriers offering health benefit plans must administer coverage for gender-affirming treatment in accordance with ORS 743A.325, OAR 836-053-0441, DFR Bulletin 2016-1 and all applicable state and federal statutes and regulations.

Click here to review this bulletin: https://dfr.oregon.gov/laws- rules/Documents/Bulletins/bulletin2025-04.pdf

Oregon — From PIA Oregon Lobbyist Isis Thornton-Saunders: The May 2025 Revenue Forecast was released today by the Oregon Office of Economic Analysis. This marks the green light for budget writers to prepare allocations, finalize Ways & Means bills, and complete the legislative session within the next six weeks.

Despite a reduction in projected revenues compared to earlier this year, the overall outlook remains stable given the ongoing national and global uncertainty. Chief State Economist Carl Riccadonna described the forecast as “flat,” which, in the current climate, is viewed as relatively positive. Oregon is not expected to enter a recession, but rather to experience a period of stagnant growth through 2026 before a projected rebound.

Lawmakers now have approximately $37.4 billion in General Fund and Lottery resources available for the 2025–27 biennium. This is $755 million less than projected in February. The current level of available resources falls short of both the $38.9 billion Continuing Service Level (CSL) needed to maintain existing services and Governor Kotek’s proposed $39.3 billion budget.

The decline in available funds reflects a $334.2 million decrease in projected General Fund revenue, a $414 million reduction in the beginning fund balance, and a $42.3 million drop in projected Lottery revenue compared to March estimates. Altogether, lawmakers are working with about 2 percent fewer resources than they anticipated two months ago.

While the upcoming biennium’s forecast has weakened, the current 2023–25 biennium, which ends next month, has outperformed earlier expectations. Compared to the 2023 end-of-session forecast:

General Fund revenues are up by $1.55 billion, or 7.4 percent Corporate tax revenues are up by $993.1 million, or 44.6 percent Combined General Fund and Lottery resources are up by $3.31 billion

The projected ending balance is up by $2.143 billion

The Rainy Day Fund is expected to receive $330 million at the close of the biennium

Oregon’s economy grew at a rate of 1.2 percent in 2024, down from 3.5 percent in 2023.

Economists expect modest growth to resume in 2026, but Oregon’s high exposure to exports and manufacturing makes it particularly sensitive to federal tariff policy. While some Oregon companies may see short-term benefits from new tariffs, the broader economic impact is expected to be negative. A prolonged or escalating trade conflict could disproportionately affect Oregon compared to other states.

Looking ahead, Oregon’s economic growth is projected to remain slower than the national average. Inflation is expected to remain steady, with household income continuing to outpace price increases. However, federal uncertainty remains a key concern. With roughly 30 percent of Oregon’s budget tied to federal funding, any cuts to Medicaid, education, or transportation could have significant consequences for the state’s finances.

Legislative leaders have expressed a commitment to a cautious and disciplined budgeting approach. Governor Tina Kotek has affirmed her willingness to work with lawmakers to make difficult but necessary decisions. Senate President Rob Wagner has underscored the need to protect core services and avoid new one-time spending obligations.

United Strategies continues to advocate for client priorities and is actively engaging with budget writers, legislative leadership, and state agencies. We will continue to monitor developments closely and provide timely updates as we move toward the end of the legislative session.

Isis Thornton-Saunders

United Strategies & Consulting | Associate

Washington — Invitation to participate in work group to recommend property mitigation standards SHB 1539(2025): The Washington State Legislature asked the Commissioner of Public Lands and the Insurance Commissioner to create a working group. This work group will study and make recommendations on property mitigation standards to resist damage from wildland fires, improving transparency of wildfire risk for property owners, and the creation of a grant program for homeowners to assist the property insurance market.

The Legislature has asked for four property & casualty insurance company representatives to participate in the work group. We hope your company considers participating, as industry’s input is critical for a successful endeavor.

The report to the Legislature is due December 1, 2025. We anticipate high activity in June, July, and August with multiple working group meetings, presentations, and discussions to meet the legislative requirements.

If your organization would like to participate, please provide a letter of interest to david.forte@oic.wa.gov by June 1, 2025, identifying the name and contact information for your company’s representative. Please visit wildfire property mitigation standards work group webpage or reach out to David by email or phone at 360-725-7268 if you have any questions.

Washington — Kurderer Issues Fines: Washington state Insurance Commissioner Patty Kuderer issued $510,500 in fines in the first four months of 2025 against insurance companies, agents, brokers and unlicensed entities for violating state insurance laws and regulations.

That included a $250,000 fine against an unlicensed insurer and a $30,000 fine for a company illegally selling pet insurance.

Kuderer fines unlicensed insurer $250,000

The OIC fined United Benefits Partnership Group (UBPG) $250,000 for acting as an unauthorized insurer by offering unqualified ERISA health plans.

The OIC opened an investigation into UBPG after fining Data Partnership Group $25,000 in 2022 for acting as an unauthorized insurer, and looking into that company’s plan designer, who also designed plans for UBPG.

The plans were effective from 2018 to 2019. UBPG described its plans as a group health plan for its personnel and explained that its benefit plan members were general partners in the organization. ERISA plans must meet federal requirements established in the Employee Retirement Income Security Act; one of those requirements is that plan participants be employed by the plan sponsor.

The people who purchased the UBPG plans said they were not employees or working partners of UBGP and did not perform any employee-like services for UBPG. These individuals purchased UBGP plans while searching for health insurance online and paid monthly premiums ranging from $139 to $1,200.

UBPG, owned by Robert Fey and based in Washington but not registered with the Secretary of State, was also ordered to cease and desist from conducting business in Washington.

Kuderer fines Petcube and Vets Plus More $30,000 for illegally selling pet insurance

Kuderer fined Petcube, Inc. and Vets Plus More $30,000 on March 25, 2025, and ordered both entities to immediately cease and desist from soliciting, engaging, or selling pet insurance products in Washington State.

The Office of the Insurance Commissioner received a complaint from a Washington resident about Petcube alleging it was offering Emergency Vet Protect Club (EVPC) coverage in Washington in January 2024.

Petcube, an unlicensed producer, claimed it was using the term “insurance” in its advertising to communicate that it was selling a pet insurance alternative. Upon further investigation, the OIC found that Petcube’s website advertised “Petcube Pet Insurance” to provide emergency coverage for pets — with an explainer on how EVPC is different from traditional insurance.

Vets Plus More, the company providing the coverage, claimed EVPC is a membership for telehealth services, though the OIC’s review showed EVPC constituted insurance.

Vets Plus More sold 113 EVCP subscriptions to Washington customers, generating $7,407 in premiums without paying the required taxes. Petcube, meanwhile, earned $17,787 in revenue — $8,939 of which was profit — from its unlicensed transactions.

Additional fines

ASI Underwriters Corp, St. Petersburg, Fla.; fined $16,000 (order 25-0024).

ASI Underwriters acted as a managing general agent without insurer designation or appointment.

American Strategic Insurance Corp., Carmel, Indiana; fined $75,000 (order 25-0023).

The company failed to use its legal name to conduct business and used a non-designated, non-appointed managing general agent.

Acrisure, LLC (Grand Rapids, Mich.) and licensees Christopher Felton (Riverside, Cal.) and Larry Gregg (Longview, Wash.); fined $25,000 (order 25-0015).

Acrisure, LLC, doing business as Falcon Insurance Agency, failed to notify the OIC of its use an assumed name; Acrisure, LLC and Gregg accepted business from an unlicensed producer; and Felton transacted business without a license.

Central States Indemnity Company of Omaha, Omaha, Neb.; fined $30,000 (order 24-0301).

The company sold policies covering irrigation equipment without first filing rules and rates.

Dentegra Insurance Company, Wilmington, Del.; fined $25,000 (order 24-0297).

The company failed to use its legal name, failed to include or correctly list its NAIC number, and submitted late responses to complaints.

Farmers Property and Casualty Insurance Company, Warwick, R.I.; fined $50,000 (order 24-0285).

Farmers applied incorrect Protection Class factors on 3,015 home insurance policies between March of 2022 and January of 2023.

Maple Shade Assurance, LLC, Nashville, Tenn.; fined $5,000 (order 25-0041).

The company operated as a captive insurer in Washington without registering with the OIC.

St. Olaf College, Northfield, Minnesota; fined $3,500 (order 25-0027).

The school issued charitable gift annuities without prior filings and approval from the OIC.

Bastian Blumig, Spokane, Wash.; fined $500 (order 25-011).

Gordon Tilden Thomas & Cordell; fined $500 (order 25-0009).