(Sacramento, CA – Insurance News 360) – Insurance Commissioner Dave Jones has served Accordia Life and Annuity Company and Athene Annuity and Life Company with an Order to Show Causation and Accusation after the companies failed to provide service and benefits to more than 50,000 California consumers
After more than 100 complaints from customers who were not provided with statutorily-mandated annual reports or billing statements, which made them unable to pay premiums or access any policy benefits, the California Insurance Department sought an order to suspend the companies’ certificates of authority for one year, as well as to cease and desist from practices harming California consumers.
“My first priority as Insurance Commissioner is protecting consumers and the integrity of the insurance marketplace,” said Commissioner Jones. “Consumers should have confidence that companies selling insurance in California are delivering on their promises and are doing so in compliance with our consumer protection laws.”
Five years ago, Accordia Life and Annuity acquired a $10 billion book of life insurance business with more than 50, 000 Californians’ policies. The deal reuired that affected consumers could have their policies transferred or remain with Athene. Those who did not consent to the transfer stayed with Athene, but their policies are administered by Accoria. Since then, Accordia has repeatedly harmed consumers who have not received their annual reports or billing statements, which kept them from paying premiums or getting their policy benefits.
Those issues caused the department to take appropriate legal action to protect consumers.
Source: California Department of Insurance.
(London, UK – Insurance News 360) – After extensive discussions with members of the Lloyd’s market, the Lloyd’s Market Association (LMA), the London & International Insurance Brokers’ Association (LIIBA) and the International Underwriting Association (IUA), Lloyd’s Corpoation will require syndicates to write at least 10 percent of risks electronically. By the fourth quarter, the requirement will be 30 percent, with other targets to come before the end of the fourth quarter.
This mandate is encouraged to speed the transformation from paper to digital. For managing agents who meet target requirements, members of the syndicate will be eligible for a rebate on their annual subscriptions. For those who don’t meet the target, additional fees will be required.
Lloyd’s Chief Executive Officer, Inga Beale, said: “We must ensure that Lloyd’s and the London market moves together and continues to prioritise its modernisation efforts. We have agreed the scope and requirements for the electronic placement mandate. Those that adopt electronic placement in line with the mandate will receive incentives, in recognition of their increased efficiency,” said Lloyd’s Chief Executive Officer Inga Beale. “Those that fall short will be required to contribute towards the costs of modernising the market. We have a system that works and that supports face-to-face negotiations. Adoption by the market will increase efficiency, reduce back office costs, and most importantly improve customer service.”
The electronic placing platform provided by PPL was launched in July 2016, initially for standalone Terrorism business. Today, 36 lines of business are available on the platform, with 29 brokers and 93 carriers signed up. Accident & Health goes live in April and the PPL Board is working with the market on agreeing suitable live dates for the remaining classes of business including Reinsurance and Aviation.
(Carson City, NV – Insurance News 360) – On July 1, 2018, a new law will go into effect that requires all consumers to purchase automotive insurance premiums that increase the minimum protection levels to $25,000 in bodily injury per person, $50,000 in bodily injury per accident, and $20,000 in property damage (“25/50/20”).
“While this new law isn’t going into effect until July, the Division has already received and approved filings from insurance companies with the new minimum vehicle liability limits,” explained Insurance Commissioner Barbara Richardson. “This means some companies may have already begun to implement this new requirement for their policyholders when they renew their policies or when they write new business.”
For consumers interested in learning more about this new requirement, the Division has posted important information and Frequently Asked Questions on its website at: http://doi.nv.gov/Consumers/Automobile_Insurance/Higher_Minimum_Vehicle_Liability_Requirements/. Consumers are also encouraged to check in with their insurance agent or company to determine how this new law will affect their policy personally.
Source: Nevada Division of Insurance.