Delaware Regulators Fine State Farm $150K Over Non-Renewal Notices

December 14, 2012Email ThisPrintNewslettersTweetArticleComments

Delaware’s insurance department announced it has fined State Farm Fire and Casualty Company a $150,000 penalty for failing to include in some of its non-renewal notices a written explanation of the specific reasons for non-renewal.

The insurer has also been ordered to review its protocols regarding the application of underwriting guidelines for Delaware’s coastal region and adjust the language included in non-renewal notices.

Following State Farm’s decision to not renew 509 of its more than 127,000 property policies in Delaware, the insurance department conducted a market conduct examination to ensure the insurer was acting within Delaware insurance laws and regulations related to property insurance under Title 18 Insurance Code, Chapter 41.

The examination determined there was no unfair discrimination in State Farm’s underwriting decisions. However, the report did find that the non-renewal notices did not contain all the statutorily required information for consumers.

Delaware regulators said State Farm Fire and Casualty Company has also been ordered to suspend coastal non-renewals for a period of 3 years (starting November 1, 2012) and include additional information on future coastal non-renewal notices.

Under an agreement between the Delaware insurance department and State Farm, the company will:

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New York Fines 15 Insurers Over Mental Health Notices

May 10, 2012Email ThisPrintNewslettersTweetArticleComments

New York regulators have fined 15 insurers $2.7 million for failing to notify small businesses they were eligible to buy special coverage for mental illnesses and children with serious emotional disturbances.

Superintendent of Financial Services Benjamin Lawsky says they are the first fines under Timothy’s Law, named for a teen who committed suicide after his parents were unable to obtain needed mental health treatment. The law took effect in 2007.

The law requires insurers give small employers the option of purchasing the mental health benefits when they buy or renew basic health insurance plans.

Insurers say the violations in 2009 and 2010 were unintentional and they have taken steps to prevent recurrences.

Fines include $1.3 million for Oxford, nearly $500,000 for Empire, and more than $200,000 each for HealthNet and MVP.

 

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.Email ThisPrintNewslettersTweetCategories: East NewsTopics: mental health benefits, Timothy's LawHave a hot lead? Email us at newsdesk

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Maryland Ends Notices for De Minimis Increases

By Staff Writer

April 13, 2012 • Reprints

NU Online News Service, April 13, 10:08 a.m. EDT

The Insurance Agents & Brokers of Maryland is applauding the state legislature’s passage of a law that no longer requires insurers to send notices for de minimis premium increases on commercial policies.

On April 9, the state’s General Assembly passed the legislation (SB 256 & HB 876) that the association says reduces “consumer confusion and industry frustration.”

The legislation amends a 2009 law that removed the state’s 20-percent threshold for notices of commercial-premium increases.

The 2009 law did not include an exemption for de minimis increases, which required insurers to send notices to policyholders for increases of as little as a few dollars or cents.

“This exemption will eliminate the headaches, customer confusion and loss of business that were triggered by notices of minimal increases,” says Henry “Butch” Bradley Jr., chairman of IA&B of Maryland.

The law exempts from the notice requirement premiums in excess of $1,000 with an increase over the expiring policy premium of the lesser of 3 percent or $300.

Under the law, commercial customers, including workers’ compensation policyholders, with premiums of less than $1,000 still will receive notices, as well as any customer whose premium increase is over $300.

The IA&B says it worked throughout the 2012 session to ensure the legislation’s passage and joined forces with several carrier groups, principally Selective Insurance, to advocate for the bill.

The law is scheduled to go into effect on Oct. 1.

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