(New York, NY – Insurance News 360) – Financial Services Superintendent Maria T. Vullo Exercises Her Authority to Expand the Scope of an Independent Review and Issues Surrender Order Imposing Conditions for the Orderly Wind Down of Habib’s New York Branch

New Consent Order Follows a 2016 Examination Finding Continued Weaknesses in the Bank’s Risk Management and Compliance Following a Prior 2015 Consent Order

New York’s Department of Financial Services issued a $225 million fine against Habib Bank and its New York branch because the bank8 did not comply with New York laws and regulations designed to combat money laundering, terrorist financing, and other illicit financial transactions.

The investigation began in 2016 when DFS discovered that the bank’s risk management and compliance were weak and that they had not completed  remedial actions required by a 2015 consent order.

Financial Services Superintendent Maria T. Vullo expanded an indep0endent review of the bank’s operations.  As a fresul9t of the fine and the findings Habib Bank has agreed to surrender its license to operate the New York branch upon fulfillment of conditions outlined in a separate Surrender Order to ensure the orderly wind down of the New York branch.

“DFS will not tolerate inadequate risk and compliance functions that open the door to the financing of terrorist activities that pose a grave threat to the people of this State and the financial system as a whole,” said Superintendent Vullo.  “The bank has repeatedly been given more than sufficient opportunity to correct its glaring deficiencies, yet it has failed to do so.  DFS will not stand by and let Habib Bank sneak out of the United States without holding it accountable for putting the integrity of the financial services industry and the safety of our nation at risk.  The terms of this Consent Order and the Surrender Order now agreed to by the bank will ensure that Habib’s misconduct will no longer occur on U.S. soil and that DFS will still investigate the bank’s prior activities.”

Source: New York Department of Financial Services.

(Concord, NH – Insurance News 360) – If the rate proposal to the New Hampshire Insurance Department for a 13.3 percent reduction of voluntary loss costs is approved.

This cost is the part of an insurance premium that pays for work-related injuries, and is wat insufrefrs use to set rates and premiums in the voluntary market. All insurers writing voluntary workers compensation in New Hampshire must use the new loss costs, along with a loading to cover company expenses.

The NCCI has filed a decrease of 10.3 percent for the assigned risk, or “residual,” market. The residual market ensures access to workers compensation for companies that can’t get coverage on the open market.

“A decrease in workers compensation rates means a decrease in costs to New Hampshire businesses.” said Insurance Department Commissioner Roger Sevigny. “These considerable savings could be used to bring more workers, higher salaries, and expanded operations to New Hampshire.

“The decrease in workers compensation rates is great news for job creators and seekers all across the Granite State,” said Governor Chris Sununu. “This will increase New Hampshire’s advantage with regards to attracting, retaining, and growing jobs.”

The NCCI is a licensed rating and statistical organization that gathers data, analyzes industry trends, and prepares workers compensation rate filings for New Hampshire and many other states.

Source: New Hampshire Insurance Department.

(Bismarck, N.D. – Insurance News 360) – On Dec. 21, 2017, Insurance Commissioner Jon Godfread announced that veterans who have taken any of the nine North Dakota insurance producer exams after June 1, 2017, may be reimbursed for their exam fee. This reimbursement comes from a partnership between the North Dakota Insurance Department and the Veterans Educational Assistance Program (VEAP), a program of the U.S. Department of Veterans Affairs (VA). Individuals wishing to sell insurance products in North Dakota must take the exam under their particular line of insurance to be licensed.

“I am grateful to the Veterans Educational Assistance Program for this opportunity and to the Department staff who pursued this partnership,” Godfread said. “This collaboration is just one way that we can express our gratitude to veterans for their service and help them to provide another great service to North Dakota consumers.”

Nine exams have been approved for reimbursement. They are:

Accident and Health

Bail Bonds

Casualty

Consumer Credit

Crop Hail Insurance

Legal Expense Insurance

Life and Annuity

Personal Lines

Property

North Dakota resident producers who took state insurance exams between June 1 and Dec. 14 have been notified by email of their potential eligibility for reimbursement.

“I am proud of the collaboration between the Department and the Veterans Educational Assistance Program that will now allow us to offer this benefit to the men and women who have served this great country,” Zimmer said. “This is just one small token of our appreciation that we can offer to say thank you.”

For more information about exam reimbursement for veterans, call the Department at (800) 247-0560.

Source: North Dakota Insurance Department.

(Sacramento, CA – Insurance News 360) – With the elimination of the federal income tax deduction for losses due to disasters, the California Insurance Department has announced that they believe it victimizes the survivors who have already dealt with disaster-related losses.

Between 2000 and 2013, there were 16 major disaster declarations in California and five that were not declared federal disasters. The Erskine Fire in 2016 killed two and was one of the most destructive of fires in Kern County’s history. It was one of those not declared a federal disaster.

With the elimination of deduction for losses from disasters that don’t qualify for federal designation will hurt survivors as well, because the current deduction covers a variety of situations and  any casualty loss, like the theft of a vehicle or other property, damage or destruction of a home due to everyday common occurrences and losses.

“It is outrageous for President Trump and the GOP leadership in Congress to require wildfire survivors to bear the brunt of uninsured losses when they have already endured so much pain and loss,” said Insurance Commissioner Dave Jones. “The GOP tax bill further victimizes wildfire and other disaster survivors where a federal disaster is not declared. It also victimizes those who suffer damage to their homes or other property where there was no disaster, such as kitchen fires, flooding caused by burst pipes, theft of a vehicle and other losses not covered typically by insurance.”

(Jefferson City, MO – Insurance News 360) – Missouri residents can now get a glimpse at the 2018 health insurance rates in the state. State Insurance Director Chlora Lindley-Myers announced the frel9ease of these rates, the first under the health insurance  rate review passed in 2016, on Sept. 1

  “While our review process is still on-going, Missourians can review and comment on the proposed rates,” said Director Lindley-Myers.  “This has been an extremely challenging year for the health insurance market in our state and across the country.  We remain committed to building a strong and competitive insurance market and are looking forward to finalizing our first year of rate reviews.”

In every count, there is at l9east one insurance company that offerors health insurance plans. both on and off of the exchange.

This rate information only includes plans that are Affordable Care Act compliant starting on Jan. 1, 2018. For all other health products, those rates will also be made publicly available on the department’s website, as they are filed and reviewed by department staff in accordance with Missouri law.

Final rates are expected no later than Nov. 1

Source: Missouri Department of Insurance.

(Lansing, MI – Insurance News 360) – On Sept. 1, the Michigan Department of Insurance and Financial Services (DIFS) announced that consumers will continue to have a choice of many insurers offering health insurance through the Marketplace for the 2018 plan year.

“Despite the uncertainty at the federal level, Michigan still has a number of companies participating this year, providing many choices for Michigan consumers,” said DIFS Director Patrick McPharlin. “Residents of every county in the state will be able to choose from at least two insurers, while some counties will have as many as eight or nine.”

DIFS released the Michigan Health Insurance Rate Change Request Charts for both individual and small group policies, information that is published annually to show proposed average rate changes. The proposed rate increases for plan year 2018 range from 16.5% to 59.4%.

The increases are partially explained by uncertainty related to the cost sharing reduction (CSR) payments called for in the Affordable Care Act (ACA), which requires that insurers help individuals who earn up to  250 percent of the federal poverty level and eligible American Indians.  The CSR payments allow insurers to meet that legal obligation without increasing rates.

DIFS has required insurers to submit two sets of rates for 2018,  a set with the assumption that there will be no CSFR payments, and a second set that includes  funding of DIFS has proactively required insurers to submit two sets of rates for 2018.

“If we receive a commitment that the CSR payments will be made, we are hopeful insurers will be allowed to change to the lower set of rates,” McPharlin said.

DIFS is seeking public comment on these proposed rates. Comments submitted prior to September 15, 2017 will be considered in DIFS’ review.  Comments should be sent electronically to HealthRateComments@michigan.gov.

Open enrollment for 2018 begins on November 1, 2017 and continues through December 15, 2017. Consumers are encouraged to contact their insurer, agent, or navigator regarding these proposed rates. There are also shopping tools, rate comparisons and resources available on the DIFS Health Insurance Consumer Assistance Program’s (HICAP) website, www.michigan.gov/hicap and the Healthcare.gov website.

Source: Michigan Department of Insurance and Financial Services (DIFS).

(Frankfort, KY – Insurance News 360) – On Dec. 21, the Kentucky Department of Insurance Consumer Protection Division announced the return of more than $15 million in the year of 2017 to Kentucky residents, including more than $10.5 million in restitution through the work of DOI’s Market Conduct Branch, which examines insurance related businesses to ensure that they comply with insurance code.  They also work to gain restitution for policy holders.

In 2017, the DOI’s Consumer Protection Division received approximately 5,100 complaints and responded to over 13,000 calls.

“We take great pride in the fact that these numbers represent dollars in the pockets of Kentuckians,” said Josh Rayborn, Director of DOI’s Consumer Protection Division. “Our staff understands the complexities that exist in the insurance market, and we strive to handle each complaint with professionalism, understanding, and care.”

Also, the division’s work returned more than $600,000 to the state’s general fund, from civil penalties and regulatory settlements.

Source: Kentucky Department of Insurance.

(Tallahassee, FL – Insurance News 360) – On Dec. 21, the ? Florida Office of Insurance Regulation (Office), Florida Department of Financial Services, and the Florida Office of the Attorney General announced that  national life claim settlement agreements have been signed with State Fa?rm for $250,000 and Aflac? for $350,000.

These settlement agreements facilitate the use of the Social Security Administration’s Death Master File (DMF) to determine if the insured, annuitant, or account holder is indicated. ? State Farm and Aflac will compare their records with the DMF to see if there are beneficiaries who should be paid death benefits, and remit unclaimed proceeds to the appropriate state authority. Florida’s will get $41,759 from multi-state settlement payments. This covers the costs of the investigations and future compliance monitoring.

Source: Florida Office of Insurance Regulation.

(Bismarck, N.D. – Insurance News 360) – On Dec. 20, the North Dakota Insurance Commissioner announced recovery of more than $5.5 million in life insurance benefits for policyholders after examination of how more than two dozen insurers use the database of individuals who have died in the country, also known as the Social Security Administration’s Death Master File (DMF).

Examination revealed that many life insurance companies have used the DMF to search for and stop payments to deceased annuity holders but did not use it to provide benefits to named beneficiaries. Twenty eight examinations led to settlements and changes to search practices.

“This is a huge victory for North Dakota consumers,” said Insurance Commissioner Jon Godfread. “Searching for and locating life insurance beneficiaries is a critical part of this business. The Department is committed to working together with other states to continue investigating insurance companies’ use of the Death Master File because with the tools available to insurance companies today, there is no reason for them not to search for and locate policy beneficiaries.”

Before this announcement, Aflac and State Farm entered into settlements totaling more than $500,000 after coordinated multi-state examinations in North Dakota, California, Florida, New Hampshire, and Pennsylvania.

“There are many North Dakotans who don’t know they could be missing life insurance policies, or don’t know where to begin to locate them,” Godfread said. “The Life Insurance Policy Locator tool on our website is critical in helping reconnect people with lost life insurance policies. This tool is simple to use and easy to access, I encourage everyone to check it out.”

Source: North Dakota Insurance Department.

(Oakland, CA – Insurance News 360) – In late December, the U.S. District Court for the Northern District of California granted a preliminary injunction in the case of State of California v. Wright. This decision is the second ruling against the Trump Administration’s regulations to allow employers not to cover contraceptives against the mandate of the Affordable Care Act.  The first injunction against the President’s regulations came from a court in Pennsylvania in early December. Both rulings showed that the federal government did not comply with the Administrative Procedures Act in promulgating its Interim Final Rule. In addition, the Pennsylvania decision also based its ruling on the additional grounds of the likelihood of the Commonwealth of Pennsylvania prevailing on its substantive challenge to the Interim Final Rule. That decision noted that the regulations “contradict the text of the statute that they purport to interpret.”

In November, California Insurance Commissioner Dave Jones submitted a declaration that the rule would harm women who were denied access to contraceptives.

“Thanks to the Affordable Care Act, health insurance policies must cover contraceptives. Tens of millions of women across the nation benefit from the ACA provision that requires health insurance coverage of contraceptives without any co-pays or deductibles,” Jones wrote.

“Before the ACA was in effect, I spoke to women who could not always afford to fill their prescriptions for contraceptives. President Trump’s regulations would prevent some women from being able to make fundamental decisions about reproductive health care for themselves. Trump’s rule, if allowed to stand, would deprive women of their rights and access to basic health care services, while increasing the number of unintended pregnancies and abortions. Women will suffer serious and irreparable harm if these rules are in place and we will continue to do everything in our power to prevent that from occurring.”

Source: California Department of Insurance.