California Insurance Commissioner Lara Fills Advisory Boards and Committees

January 14, 2021.

(Los Angeles, CA, Economic & Insurance News by Insurance Market 360 ) – On April 24, new appointments to multiple advisory boards and committees in order to protect policyholders in the state.

New members joined the California Automotive Assigned Risk Plan Advisory Board (CAARP), the California Insurance Guarantee Association (CIGA) Board of Governors, and the Workers’ Compensation Insurance Rating Bureau (WCIRB) Governing Committee. CAARP advises Commissioner Lara on the operation of programs like the California Low Cost Auto Program and others; the CIGA Board oversees the operations and management of the guarantee association to protect policy holders, and the WCIRB Governing committee oversees issues related to pure premium rates, classifications, rating plans, rating systems and manual rules and policy, as well as endorsement forms. It is a private organization.

“I am very pleased to announce these appointments to the CAARP Advisory Committee, the CIGA Board of Governors, and the WCIRB Governing Committee,” said Insurance Commissioner Ricardo Lara. “These committees and boards’ primary goal is to protect California consumers and these members will help us meet that goal.”

The next meeting of the CAARP Advisory Committee is Wednesday, May 20, 2020. The CIGA Board of Governors will meet on May 6, 2020, and the WCIRB Governing Committee will meet on June 10, 2020.

Source: California Department of Insurance.

Average premium renewal rates experience variable change across all major commercial lines month over month

February 18, 2021

(Tampa, FL, Economic & Insurance News by Insurance Market 360) – The July results of the IVANS Index, which shows the insurance industry’s premium renewal rate index, show that all lines of business saw increases in average premium renewal rates, except for Workers’ Compensation, which declined.

July premium renewal rates for Commercial Auto, General Liability and Commercial Property,all had positive changes month-over-month. BOP, Umbrella and Workers’ Compensations experienced negative changes.

Highlights of premium renewal rate changes for July 2020 include:

  • Commercial Auto: 5.1%, up from 4.63% last month.
  • BOP: 4.38%, down from 4.64% at the end of June.
  • General Liability: 3.45%, up from 3.36% the month prior.
  • Commercial Property: 5.42%, up from 5.23% in June.
  • Umbrella: 3.23%, down from 3.56% the month prior.
  • Workers’ Compensation: -2.66%, down from -2.49% last month.

“Year over year, we continue to see the commercial lines premium renewal rates on the rise, with the exception of Workers’ Compensation,” said Brian Wood, vice president of Data Products Group, IVANS Insurance Services. “The data insights of the IVANS Index continues to demonstrate a hardening market and acts as further evidence of insurers taking rate to mitigate potential loss.”

Download the complete Q2 IVANS Index report here.

Source: IVANS.

Reference: https://www.ivansinsurance.com/en-us/for-insurers/resources/reports/ivans-index-premium-renewal-rate-index/

Attorney of Newport Beach Booked for an Insurance Fraud of $3.1 Million

February 17, 2021.

(ORANGE, Calif., Economic & Insurance News by Insurance Market 360) – Moses Luna, 73, was arrested in connection to 20 offenses of translating and interpretation frauds of employees’ compensation fee worth of $ 312,220.

Office of Orange city District Attorney is looking into the legal formalities related to the case.

The case was investigated jointly by the department of Insurance and Orange county district attorney. The accused Attorney, Luna, did not reveal the information related to the corporate company titled “ADELANTE INTERPRATING Inc.,”

Interestingly, all protocols pertaining to administration, employees, independent contracts accounting and collection are handled by Luna though the company is registered on the name of his daughter. Further, concerns related to depositions and medical appointments of the workers’ are all referred to ‘Adelante’ and claim benefit amount is utilized by the booked attorney. He utilized the advantage of referral services to claim a claim and used the loophole in the administrative set up and took the complete advantage of it with his professional and criminal mindset.

He was booked reference to the complaint lodged by 20 Insurance companies and scheduled to attend to court on 19 January 2021. ACM, AIG, Amtrust, BHHC, Comp West, Employers, ESIS, Farmers, Hartford, ICW, Liberty Mutual, Markel, Matrix, Midwest, Sedgwick, SCIF, Sentry, Travelers, York and Zurich are the twenty victim insurance companies.

Source: Department of Insurance, California

Reference: http://www.insurance.ca.gov/0400-news/0100-press-releases/2020/release133-2020.cfm

Insurance Companies Need to Change Their Strategies on Wildfire of Insured Assets _ A Research Report

February 16, 2021.

(Washington, DC, Economic & Insurance News by Insurance Market 360) - Centre for Insurance Policy Research (CIPR) in association with Risk Management Solutions (RMS) and Institute for building and home safety (IBHS) investigated and submitted a technical report on the economic advantages of wildfire resilience strategies in nine communities of California, Colorado and Oregon.

Research was done considering North America wildfire model taking into account various factors like: geographical conditions, distance of plant life, slope and ceiling, suppressions, roof events and acceptability conditions.

The paper could trace out certain interesting observations like, traditional information and data will not suffice to get clarity on risk minimizing concept. Rather, the emphasis should be on practical approaches and disaster management strategies to address the issue in a realistic and accessibility manner. It is also felt that; wildfire can be effectively managed by taking necessary mitigations and interventions. Lion share of about 78% reduction can happen if certain modifications can be done in the construction design and vegetation; well built constructions can withhold risk by 5 times than to that of flammable prototypes and sensitive to various calamities which results in major loss and damage to the property and people.

IBHS and National Institute of Standards and Technology, NIST with their vast experience and specialization in the wildfire suggest that, Insurance companies need to focus on reduction of risk factors rather than termination strategies.

Source: National Association of Insurance Commissioners, NAIC

Reference:https://content.naic.org/article/news_release_new_white_paper_cipr_reveals_key_actions_reduce_wildfire_risk.htm

 

Owner of Pro-Care booked for a charge for 3 Insurance offenses worth of $ 7 Million

February 12, 2021.

(Sacramento, Calif., Economic & Insurance News by Insurance Market 360) – Jorge Gerardo, 55, of Sacramento, was found guilty of three Insurance offenses which were intentionally done related to underreporting payroll and employees to illegally save on workers’ compensation insurance premiums, impacting a loss of  $687,560 to three insurance bearers.

Referring to the complaint of one of the Insurance agency, department of Insurance, California, initiated an investigation into the issue and probed into the cleaning company PRP-CARE owned by the accused since 2014.In the enquiry; it was found that the owner intentionally underreported payroll and committed premium cheat to the insurers.

In another incident, an employee of Pro-Care demised on 10 July 2016.The cleaning company did not submit the required and relevant documents of underwriting and pay roll to the insurance providers which became other strong supporting evidence of conscious fraud.

Further, the captioned company did not submit its report to the insurance companies for three years consecutively from 2017 to 2019 whose value was above $5 millions. All the above illustrations have become clear evidences to the department confirming the cheating done by Maldonado.

In this regard, Maldonado surrendered as there was no option left except accepting his mistakes. He is sent to the court jail of Sacramento wherein the case is under the jurisdiction and purview of the office of Country district Attorney.

Source: Department of Insurance, California

Reference: http://www.insurance.ca.gov/0400-news/0100-press-releases/release139-2020.cfm

 

Proposal to the President elect and team for a comprehensive health cover to all

February 11, 2021

(Sacramento, Calif., Economic & Insurance News by Insurance Market 360) – Eleven states Insurance commoners’, including Ricardo Lara, California Insurance commissioner, submitted a proposal to support the incoming administration headed by the president elect Joe Biden for comprehensive health coverage to all the residents.

The major objectives of the representation are to cater the immediate needs due to Covid_19 and narcotics, empower states to take initiations to strengthen health insurance market, minimize discrimination hurdles with regard to health services to people, coverage of pre existing diseases and a 360 degree health coverage to all the citizens.

The draft shared to the administration broadly consists of two recommendations: six immediate action points and 6 long term views. The concerns of the immediate attention are: prompt action is required with respect to special drive for easy access, relief from ACA (Affordable Care Act), clarity on Covid-19 tests finances, concerns on Notice of Benefit and Payment Parameters (NBPP), flexibility to state to take appropriate initiations related to ACA and reinsurance.

Whereas, long term objectives consists of : plan for access of Health insurance access by all, enrolment to ACA, consumers to choose better health care services, exemption of tax to legal non citizens, revision of labour laws for the benefit of retired people health care and nationwide reinsurance program for the larger benefit of all households.

Commissioners of California, Colorado, Delaware, Hawaii, Michigan, Minnesota, Oregon, Pennsylvania, Rhode Island, Washington and Wisconsin were part of the documented pledge.

Source: Department of Insurance, California

Reference: http://www.insurance.ca.gov/0400-news/0100-press-releases/2020/release138-2020.cfm

Investigation revealed an Insurance fraud of $ 212,307 by mother and daughter

February 10, 2021.

(Los Angeles, Calif., Economic & Insurance News by Insurance Market 360) – Hazel Edwards, 59, and Laquinta Lowe,38, of Chula Vista arrested in a fraud claims of $2.12Million. Action was initiated on both, with reference to the complaint of Edwards insurance Company in 2018 producing the necessary documents of 2014-2017 on multiple offenses, large theft and fake injuries.

Edward is found responsible for seven cheating cases worth of $131,856 and Lowe, for four cases, $ 80,451.Mother. Both of them were arrested on 17 December, 2020.

Mother submitted documents for reimbursement with regard to continuous injuries by playing softball, head injuries and snakebite; while, daughter, claimed injuries due to  playing football, head hit and snakebite. It was found in the enquiry that both of them submitted fake documents for all the claims claimed and hence arrested. Mother became a role model to the younger one in cheating and illegal actions.

Edwards was sent to the Riverside County Sheriff’s Department, Southwest Detention Facility and Lowe was taken into custody and sent to the San Diego County Sheriff’s Department – Las Colinas Women Detention Facility. Bail for each is permitted by the attorney for a value of $50,000. The case is prosecuted by the office of Los Angeles County District Attorney’s and the bail amount for each is $ 50,000

Source: Department of Insurance, California

Reference: http://www.insurance.ca.gov/0400-news/0100-press-releases/2020/release137-2020.cfm

DIFS, Michigan, facilitated a reimbursement $ 16,200,000 to clients’ in the FY 2020!

February 09, 2021

(LANSING, Mich., Economic & Insurance News by Insurance Market 360) – Department of Insurance and Financial services, DIFS, Michigan facilitated customers to receive $16.2 Million in the fiscal year with reference to various complaints raised by the citizens of Michigan.

Out of the total settlement of $16.2M, $9 Million was retrieved from unsettled claims, fee waivers and refunds from service providers in insurance and financial services; remaining $7.2 Million was recovered from unclaimed life insurance and pension concerns.

DIFS, aim, is to safeguard the rights of consumers’ in addition to monitoring the economic growth and sustainability in insurance and financial line. In this regard, department, suggests the public to settle their issues on their own to the possible extent. They can approach the department for any complications and unsettled issues. Officials based on the intensity of the complaint and evidences, can penalize and cancel the licence of the insurance and financial companies.

DIFS has been providing awareness on consumer rights in addition to free services under the title LIAS to address need based support of their privileges and compliances. Insurance and Financial service purchasers can get in touch with the appellate authority on toll free number, 877-999-6442, from Monday to Friday, 8am to 5 pm or drop an email to LIAS@michigan.gov or visit the portal Michigan.gov/DIFScomplaints.

Further details and information can also be obtained from the national association of consumers, eapps.naic.org/life-policy-locator.

Source: Department of Insurance and Financial Services, Michigan

Reference: https://www.uppermichiganssource.com/2020/12/17/michigan-department-of-insurance-and-financial-services-helps-consumers-recover-more-than-162m-in-2020-fiscal-year/

November statistics reveal decline in new constructions completion

February 05, 2021

(Washington, DC, Economic & Insurance News by Insurance Market 360) – Data of November 2020 released by the US Census Bureau and department of Housing and urban development exhibits the decline in newly completed house constructions than building permissions and house starting in comparison with the values in October 2020.

Calculation is done by adopting technique of sample survey put through for sampling mutability, non sampling inaccuracy consisting of bias and response from the participants, non participants, un-reported and under coverage.

With respect to building permissions, total permitted are 1,639,000.There is an increase of 6.2% than the last month, 8.5% hike than October last year. Single family permits improved by 1.3% than Oct 2020.Number of five or more building permissions in November 2020 , 441,000.

The number of house permits in November 2020 was 1,547,000.Private owned starts in the month was 1.2% more than October 2020 and 12.8% high than the same time last year. Single family count is improved by 0.4% than the last month. Count related to five or more building permits was 352,000 in November 2020.

Statistics reveal that 1,163,000 houses were completed in November 2020.Private owned completed were 12% less than the last month and 4.8% less when compared to the value of Nov 2019.Single family constructions dipped by 0.6% to last month and five or more building constructions value was 280,000 in November 2020.

Survey is conducted periodically to analyse and review the status in constructions sector. Quarterly data facilitates the trend, half year statistics reveal the stars value and six months numbers about the completed status.

Source: Government Construction Census

Reference: https://www.census.gov/construction/nrc/pdf/newresconst.pdf

New Year May Could be a Challenge To Commercial Business: A Report by Best’s Market

February 04, 2021

(Oldwick, NJ, Economic & Insurance News by Insurance Market 360) - Commercial line industry is expected to face more trouble in 2021 than the previous year. Financial havoc, social inflation due to judicial operations in addition to Covid-19 can have a negative impact on the niche and Insurance sector in major.

Unfavourable weather is expected to continue in the New Year and majority of the hurdles related to internal and external operations including environment factors can have a great affect on the commercial sector as a whole.

A B Best in its latest report, “Market Segment Outlook: US Commercial lines” opined that in spite of many hurdles in 2020 business could withstand all odds. Agency stated that there are three basic troubleshoots to the sector namely primary, secondary and others.

Hike in the prices, strict rules and regulations, decrease of capacity and profits constitute primary. Wildlife, natural and manmade calamities comes under secondary. Factors like Covid-19s economic settlement, re-entry of non functioned companies during pandemic, effect of commercial causality with regard to nuclear judgements, higher officials insurance premiums, increasing loss costs can add on further burden including stringent protocols.

Capital position due to reasonable level of liquidity and ability to handle risk effectively is an advantage to the commercial sector. It is important for the companies to focus on high risk adjustable capital base, business risk management activities; minimum risk investment portfolios can help the companies to run their operations smoothly in 2021!

Source : A M Best Company

Reference : http://news.ambest.com/presscontent.aspx?refnum=30148&altsrc=9&_ga=2.5469875.1013927451.1607483379-868248373.1605033586