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Some of the Office of the Insurance Commissioner's online applications are down or do not have full functionality. We are working on resolving these issues and hope to restore all online services as soon as possible. Thank you for your patience.

Contractors Bonding and Insurance Co. seeks OK to redomesticate

Contractors Bonding and Insurance Co. has requested approval from the Office of the Insurance Commissioner (OIC) to redomesticate from Washington state to Illinois. View all related documents.

The OIC has scheduled a public hearing on this request for 11:30 a.m. on Dec. 16 in the Tumwater office. All interested parties may submit letters of support or objections to hearings@oic.wa.gov. Any member of the public may attend the hearing.

Commonwealth Insurance Co. of America requests approval to change its state of domicile

Commonwealth Insurance Co. of America has requested approval from the Washington State Insurance Commissioner to redomesticate from Washington state to Delaware. In plain talk, that means it wants to move its corporate operations from Washington to Delaware. View the documents the company submitted.

The Office of the Insurance Commissioner has scheduled a public hearing on this request for 10:30 a.m. on Dec. 16 in the Tumwater office. Interested parties may submit letters of support or objections to hearings@oic.wa.gov. Any member of the public may attend the hearing. 

Direct practices lose 35 percent of enrollees, raise fees 23 percent

Each year, the OIC reports to the Legislature on the status of direct health care practices in Washington. A direct health care practice is an arrangement where a health care provider charges a patient a set monthly fee for primary health care services. The provider doesn’t bill the patient’s insurance for the services and only provides certain medical services in the office.

The December 2014 report contains data from July 1, 2012 through June 30, 2014, which is two fiscal years’ worth of information.

Some highlights from the report:

• As of June 30, 2014 there were approximately 8,658 direct-practice patients in Washington at 29 practices around the state. Patient participation decreased by 35 percent from fiscal year 2013. Four new practices opened in Seattle, Camas and Centralia. Three practices closed in Spokane and Lakewood.
• Monthly fees at direct practices ranged from $25 to more than $200. The most expensive was $910 per month. The average monthly fee weighted by the number of patients was $150.78, a 23 percent increase from fiscal year 2013.
• The OIC received no consumer complaints regarding direct patient practices in fiscal year 2014.

The Affordable Care Act now requires health insurance plans to cover 10 essential health benefits, which include preventive services and chronic disease management. It also puts a cap on deductibles that consumers pay each year and direct practice fees do not count toward that yearly maximum. In addition, Washington expanded its Apple Health (Medicaid) program and the state’s individual health insurance market grew 30 percent in fiscal year 2014 to more than 327,000 people.

View the full report to the Legislature.

What should I know about travel insurance?

If you are getting ready to travel for the holidays, here are some things to consider about travel insurance before you purchase it.

Many travel companies—airlines, cruise lines, resorts—offer travel insurance that will refund most or all of the cost of the trip in certain circumstances. Policies typically cover things like trip cancelations due to illness, civil unrest, job loss, or the transportation carrier going out of business. They’ll also pay for fees incurred by missed connections and delays; baggage damage or loss; medical expenses incurred by an injury or illness while traveling; emergency evacuation; car rental damage; and accidental death.

Before you decide whether to purchase travel insurance, you should consider:

• What your medical insurance covers when you travel.
• What your homeowner or renter insurance covers in the event of lost or stolen belongings.
• What your life insurance policy covers in the event of accidental death while traveling.
• The cancelation policy is for the travel insurance.
• Read the policy's fine print. Some don't cover certain activities such as hang-gliding, bungee jumping or other activities. Some also exclude certain pre-existing conditions from the medical coverage they offer.
• You should also make sure the travel insurance company is licensed to sell insurance in Washington.

Read more about travel insurance on our website.

Questions? You can contact our consumer advocates online or at 1-800-562-6900.

Some homeowner policies offer percentage deductibles

When you are considering homeowner insurance, it’s good to be aware of what type of deductible you have. Some insurance companies charge deductibles that are a percentage of the home’s value, rather than a flat dollar amount. For example, if your deductible is 0.5 percent and your home’s value is $500,000, your deductible would be $2,500.

Some people would prefer to pay a higher deductible and get a lower monthly premium. It’s important to do the math and find out what that half-percent will cost you. Keep in mind, your home’s value is likely to increase over time, which means your deductible will, too.

Read more about homeowner insurance on our website. Questions? You can contact our consumer advocates online or at 1-800-562-6900.

Been in an auto accident? Beware of this scam

KING 5 news reported yesterday that some accident victims are being scammed into getting unnecessary chiropractic treatment to drum up payments from insurance companies. Consumers who experience this -- or any other type of insurance scam -- should report it to our consumer advocates at 1-800-562-6900 or online.

According to KING 5, the scammers use Washington State Patrol’s collision reports to find people who've been in auto accidents. One family reported they were led to believe the insurance company wanted them to be seen and gave them a time limit for the visit.

"They said the claim was going to close immediately. They said we need to come in if we want to have any future claims," the victim told KING 5. 

If you are involved in an accident, the auto insurance company will not require you to see a doctor. It is up to you to seek medical treatment at your discretion. However, if you claim you have medical problems related to an accident, the insurance company may request verification from a medical professional. Consumers should always contact their insurance company’s claim representative or their insurance agent or broker when they have questions about a claim.  

In addition to misleading consumers, tricking consumers into getting unnecessary treatment can drive up insurance rates. Insurance companies base their rates in part on the claims they paid in previous years and unnecessary claims get factored into future rate increases.

Read more about insurance fraud and scams.

Can OIC recommend insurance agents to consumers?

Consumers call our hotline daily to ask us questions about insurance. Sometimes, consumers ask us to refer them to insurance sales agents who might be able to sell them the type of coverage they are looking for.

While we do regulate the insurance industry, we do not refer consumers to specific agents or brokers. However, we encourage consumers to check the licensing status of agents, brokers or companies on our website. Consumers can also call our hotline and ask one of our consumer advocates to look up that information on their behalf.

Read more about your insurance on our website.

Questions? Contact our consumer advocates online or by calling 1-800-562-6900.

Online services are running slowly due to network issue

OIC's online services are running very slowly at this time due to network issues at the state level. Users may experience difficulty trying to access our online services while technicians work to resolve the issue. Thank you for your patience.

Seattle area warned about landslide risk

Today, the Seattle Times published a warning about the risk of landslides due to recent heavy rains: Heavy rains bring increased risk of landslides, SPU warns. "With rain late Thursday and Friday morning, Seattle exceeded the official U.S. Geological Survey’s landslide threshold."

In addition to taking the steps outlined in the article, homeowners should take a look at the insurance policies. Homeowner policies typically do not cover damage caused by land movement or a landslide if the underlying case is excessive water.

There are options for homeowners who wish to have coverage in the event of a landslide. Consumers can purchase a rider that covers the contents of their home from all perils, including landslides. Some companies also sell earth-movement coverage for any structures on your property. Flood insurance may cover landslide damage that is due to heavy rains. Your insurance agent or broker can tell you what type of coverage is best for your situation.

Read more about flood insurance on our website. If you have questions, contact our consumer advocates at 1-800-562-6900.

Insurance tips for consumers affected by Longview tornado

Yesterday, people in the Longview area experienced a tornado, a rare occurrence in Washington state. Luckily, there are no reports of injuries but there was some property damage to buildings and vehicles, according to news reports. Read more about the tornado in The Columbian newspaper.


Photo courtesy KING5.com

Standard homeowner and commercial property policies typically cover damage caused by tornados or wind. Damage from tornados can damage building exteriors and roofs, which can leave them susceptible to water damage from rain, and can cause trees to fall on buildings and cars. Personal auto and commercial auto policies would need to have comprehensive coverage in order pay for damage caused by wind.  

If you experienced any damage from yesterday’s tornado, contact your agent or broker to discuss what coverage you actually have and to get your claim started. If you have questions, you can contact our consumer advocates online or at 1-800-562-6900.

Insurers largely unprepared for climate change

A report issued today found only 9 percent of insurers are well prepared to face the risks posed by a changing climate. Only two of those insurers are headquartered in the United States.  

Ceres today released its 2014 climate preparedness scorecard, which ranks the nation's 330 largest insurance companies on what they are saying and doing to respond to escalating climate risks. The report is based on a 2013 survey of insurers with an excess of $100 million in direct written premiums conducted by insurance regulators in Washington, California, Connecticut, Minnesota and New York.

 

More results:

• 276 of the 330 companies that responded scored in in the bottom half.
• The top nine best-prepared companies are: ACE, Munich Re, Swiss Re, Allianz, Prudential, XL Group, The Hartford, Sompo Japan and Zurich. Only The Hartford and Prudential are headquartered in the United States.
• Overall, property and casualty (P&C) insurers are better prepared than life and health insurers, which are largely unprepared.

Washington Insurance Commissioner Mike Kreidler and the other insurance regulators care about this issue for a couple of reasons – first, climate change brings extreme weather events, which can cause widespread damage to homes and other property, as we saw during this summer's wildfires. More frequent and more severe natural disasters mean more claims, which means insurance companies need to make sure they have enough money to pay those claims. Insurers can help maintain their financial solvency by making sure their money is invested soundly and in climate-friendly ways. Secondly, insurance companies can reduce their risk by being proactive. Kreidler has called for insurers to get involved in building codes, land use practices and working with developers to help mitigate the effects of climate change.

“The insurance industry is uniquely positioned as the bearer of risk to make adjustments now to lessen dramatic impacts we know are coming. This is not a partisan issue, it’s a financial solvency issue and a consumer protection issue,” Kreidler said in the Ceres news release.

Take a look at our media roundup about the report findings.

Consumer alert: Trade marketers banned from selling health care products

The federal government this week banned a trade association from selling health care-related products to consumers. The OIC issued a cease-and-desist order against the same group in 2012 for selling discount health plans in Washington without a license.

The Federal Trade Commission banned the Independent Association of Businesses (IAB) from selling any products that could be construed as health insurance or health care products to consumers. The group marketed its products as health insurance but consumers who purchased it were in fact enrolled in an IAB membership that included discounts on many services, including travel protection, identity theft protection and certain medical visits that were subject to broad exclusions and limitations.

IAB indicated to our investigators that it had sold 190 memberships to 161 Washington consumers as of September 2010 and it was still doing business at the time of our order in February 2012, even though it knew it wasn’t legal to do so. Consumers should be wary if they see marketing from IAB or any of its affiliated business names: International Association of Benefits, International Marketing Agency, Independent Association of Businesses, or IAB. You can report any activity from this marketer to the FTC’s online complaint center. If you have questions about health insurance, call our consumer experts at 1-800-562-6900 or visit us online.

Change your Medicare enrollment now through Dec. 7

Medicare’s open enrollment period for prescription drug plans (Part D) and Medicare Advantage plans starts today and runs through Dec. 7. Our Statewide Health Insurance Benefits Advisors (SHIBA) provide help in your community.

SHIBA offers free help to people with Medicare questions, including what changes are happening this year.

“Our unbiased volunteers in your community can answer your questions and help you search for plans online,” said Insurance Commissioner Mike Kreidler.

Before you make your Medicare decision, consider the following:

• Plan costs and coverage will likely change every year, so carefully review all letters and notices from your insurer.
• Make a list of all current prescription drugs you take, the doses, and how often. Then, use the Medicare Plan Finder to compare prescription drug (Part D) plans.
• Review the 2015 Medicare & You handbook. You should receive it in the mail by mid-October.
• If you have limited income and need help paying for prescription drugs, check out Medicare’s “Extra Help” program. To see if you qualify, contact the Social Security Administration at 800-772-1213 or visit www.socialsecurity.gov. 

Call our Insurance Consumer Hotline at 800-562-6900 to ask for help or to schedule an appointment with a SHIBA volunteer in your area. You can also find a free Medicare workshop in your area on our online calendar and sign up to receive Medicare consumer news from us by email or text.

We are back in business!

All of our web-based applications are available again and we are able to respond to emails now. Thank you for your patience!

Web-based applications, email are down

A state-level technical glitch is causing OIC's web-based applications to be down for the time being. OIC staff email and Internet access are also down, so please be patient if you are trying to reach us electronically. We do not yet have an estimate of when our services will be restored and we appreciate our users' patience.

Even if you think you know what your policy covers, read it again

We've said this before and we will keep saying this ... you must read your policies, the sooner after you purchase them the better.

We receive calls daily from frustrated and often distraught consumers because they are having a problem with their coverage, premiums or outcomes of their claims because they thought they had a certain type of coverage that they did not actually have.

We can't overemphasize the importance of this sentence: When you sign up for coverage of any kind, be sure to check the policy when you receive it! This is your responsibility as a policyholder. Read it, look at the coverage and prices, and ask your agent or insurance company any questions immediately before you have a claim or policy payment issue. It’s much easier to make a correction early in the process rather than after you have a claim and things aren’t correct.

Read more about your insurance on our website. Questions? You can contact our consumer advocates online or at 1-800-562-6900.

OIC orders Fife RV & Auto Center to stop selling warranties

OIC has ordered Fife RV & Auto Center to stop selling vehicle protection product warranties effective immediately. The company has been selling a warranty to repair any surface damage on the interior and exterior of vehicles. Since 2012, the company has sold 236 warranties to Washington consumers without being authorized to do so.    

Warranties are considered insurance under Washington state law and businesses must be authorized to sell them in Washington state.

The company has a right to demand a hearing and it must honor the terms of all warranties it sold to Washington consumers. Read more about warranties and service contracts sold in Washington.

If you feel you have been treated unfairly or have questions about insurance in Washington state, contact our consumer advocates online or by phone at 1-800-562-6900.

Consumers ask, why is my repair taking so long?

Our consumer advocates receive many calls from consumers wondering why repair work gets delayed, whether it be an auto repair or home repair that is being covered by insurance. 

Generally, if you are using the insurer’s recommended auto repair shop, building contractor, cleaning service, or any other vendor, you should expect the insurer will monitor the progress of the repair and and that you will not be responsible for any added expenses due to repair delays. We do, however, expect the insurer will communicate with your repair shop and contractors in a timely manner to be able to come to an agreed price of and timeline for a repair.

If you decide to use your own repair shop, building contractor, cleaning service, or any other vendor that is not one recommended by your insurance, it is your responsibility to monitor the repair progress and monitor the vendor. Delays created by your shop or contractor and any added expenses or inconvenience created by those delays are not the responsibility of the insurer. In those cases, the insurer will expect you to pay for extra car rental days or alternate living arrangements if a delay is caused.

If you are working with an electrician, plumber, elevator mechanic or manufactured home installer, you should protect yourself by verifying they are licensed with the state Department of Labor and Industries.

In any event, it is always a good idea for you to take an active role in the claims process--do not expect that everything will be done automatically by the insurer or the business that is doing the repair work. Being involved in a claim by its very nature is unpleasant, but you can help lessen frustration by asking questions and keeping track of the progress of your repair.
If you have questions, you can contact our consumer advocates online or at 1-800-562-6900.

Scientists predict another St. Helens eruption; make sure you are covered!

Mount St. Helens, Washington’s most active volcano, is showing signs of reawakening, according to scientists, who say it’s only a matter of time until it erupts again. An eruption started 10 years ago that lasted until 2008, outlined in The Columbian newspaper. The lava dome has since rebuilt and the U.S. Geological Survey is seeing signs of magma activity under the volcano, according to the Associated Press. 

The good news is that most homeowner and auto policies will cover some degree of damage due to volcanic eruptions, but there are, of course, exceptions. The key is evaluating your home and auto policies and talking to your insurance agent before an eruption occurs.

Read more about volcano coverage for your home and auto. If you have questions or complaints about your insurance, contact our consumer advocates online or by phone at 1-800-562-6900.