DOVER – Insurance Commissioner Stewart and the Delaware Department of Insurance report that $940,995.72 has been recovered for consumers in the first half of 2013. The Consumer Services Division has recovered $446,697.72 for Delaware policyholders and handled 2,291 formal complaints and inquiries which is an increase from 2,027 complaints and inquiries during the first six months of 2012. The breakdown of funds recovered during this period is:

•           Consumer Services – $446,697.72

•           Market Conduct Examinations and Investigations – $50,511

•           Arbitration Hearings – $443,787

Health insurance continues to generate the most consumer complaints, followed by auto and homeowners insurance. Denial of claims and claim delays continue to rank highest in the type of complaints received by the Consumer Services Division at the Department of Insurance.

The Department’s Market Conduct Division has returned $50,511 back to consumers as a result of exams and investigations in the first half of this year. Arbitration actions also resulted in over $400,000 recovered for Delaware consumers as a result of hearings requested by or on the behalf of the consumer and facilitated by the Department of Insurance.

During the first six months of 2013, the Delaware Department of Insurance was extremely successful in saving money for Delaware businesses. The Workplace Safety Program is a Department of Insurance incentive program designed to help employers with exposure in Delaware to establish and maintain safe workplaces. The program also provides businesses with the opportunity to earn discounts on their workers’ compensation insurance premiums by undergoing safety inspections.

Our accomplishments thus far in 2013 include 1016 businesses enrolled in the workplace safety program and, their collective savings total $5,939,098.00 on their workers’ compensation insurance premiums.  We continue to work daily with employers and insurance agents to communicate the benefits of participation to those who are eligible for the first time and to retain previous participants. For more information on the workplace safety program please contact our office at (302) 674-7378.

Commissioner Stewart stated, “In 2012, the Department of Insurance was able to recover $1.4 million dollars for Delaware consumers. Last year’s recovery numbers combined with this year’s numbers demonstrate our commitment to assisting all Delawareans. We urge consumers to contact our office to gain a better understanding of the claims process and their policies.” For help with all insurance matters, call our office at (302) 674-7300 or (302) 674-7310 for Consumer Services. Also, visit our website www.delawareinsurance.gov, and follow the Department on Facebook at: www.facebook.com/DelawareInsurance.

The Department of Health and Social Services and the Department of Insurance have reached contract agreement with four community organizations to provide one-on-one guidance to Delawareans about the new health insurance marketplace.

The organizations will hire marketplace guides to help individuals learn more about health insurance, and how to be screened and enrolled for insurance through Delaware’s marketplace, also known as the exchange. Enrollment on the marketplace, part of the implementation of the Affordable Care Act, will begin Oct. 1, with insurance coverage beginning Jan. 1, 2014.

The four community organizations, announced today at the Delaware Health Care Commission meeting, are:

Brandywine Women’s Health Associates
Christiana Care
Delmarva Foundation
Westside Family Healthcare

“The marketplace guides are all coming from trusted community organizations that regularly interact with people who are in need of affordable health insurance,” said Rita Landgraf, Secretary of the Department of Health and Social Services. “For some people, the process of enrolling for health insurance can be intimidating. The marketplace guides will walk people through the documents they will need and the process they will use to compare health insurance plans to find the one that is right for their families.”

“This is another important step forward in Delaware’s state-federal partnership health insurance marketplace,” Insurance Commissioner Karen Weldin Stewart said. “The marketplace guides hired by these four organizations will be trained to provide unbiased consumer support services to prospective enrollees. To be certain that you are speaking with a trusted marketplace guide, they will carry cards that identify them as members of their respective organizations and as state-certified marketplace guides.”

The health insurance marketplace is a one-stop shop that will provide online access to quality, affordable private insurance choices for consumers and small businesses. Some individuals will be eligible for tax credits to help pay for their health insurance. Delaware expects to serve as many as 35,000 individuals through the marketplace. About 90,000 Delawareans are currently uninsured.

In the state-federal partnership marketplace, Delaware retains controls of plan management, including state requirements for qualified health plans. The state also controls consumer assistance and outreach, including the marketplace guides. Public decisions and discussions about the marketplace are done at the monthly Delaware Health Care Commission meetings in Dover.

Delaware received a $4.06 million federal establishment grant to contract with community organizations for the hiring of marketplace guides.

For more information about Delaware’s health insurance marketplace, contact Marla Blunt-Carter (DOI) or Jill Fredel (DHSS).

To learn more about how the health insurance marketplace may work for your family, go to www.healthcare.gov/marketplace.

For background on the development of Delaware’s health insurance marketplace, go to http://dhss.delaware.gov/dhss/dhcc/ or http://www.delawareinsurance.gov/.

Frontline Insurance, one of the leading insurers for coastal homeowners coverage, continues to expand with the announcement it is now licensed in Delaware.

“Coastal coverage for homeowners is a primary focus for us. Delaware has shown continued growth in its beach communities, making this area a natural fit for our business,” said Leman Porter, President. “With over 54% of America’s population living within 50 miles of a coast, and more moving closer every day, we’re optimistic about continued geographic expansion for Frontline Homeowners Insurance.”

Well known in Florida and South Carolina for their competitive rates and extensive coverage, and well regarded for their strong financial stability, Frontline Homeowners continues to be strong along the East Coast. The company recently announced a new comprehensive coverage program for Alabama residents, including wind and flood all in one package.

A particular highlight of Frontline Homeowners Insurance is their Contractors Assist Program. Unique in the industry, Contractors Assist manages the entire restoration of your property, from claim to completion.

Now that licensing in Delaware has been completed, Frontline Homeowners Insurance will begin the process of determining insurance coverage specifications and timing for program release, anticipating availability in late 2013.

Frontline Homeowners Insurance, based in Lake Mary, FL, is a group of independent insurance companies serving homeowners throughout the Southeast United States. Through their affiliated companies; Fidelity Fire & Casualty Company and First Protective Insurance Company, they offer homeowners a financially stable, proven company with a record of superior claims service. Frontline was established in 1998, offering home, property and liability coverage. Frontline brings the total number of carriers to 9 for the Delaware Coastal Area.

In the past few weeks, Delaware has experienced severe weather occurrences resulting in extensive property damage. Today, Insurance Commissioner Stewart shares insurance tips to all Delawareans related to storm damage.

Commissioner Stewart stated that, “Following the disastrous weather systems that we have recently experienced throughout our state, I wanted to share important tips for Delawareans filing an insurance claim for damage caused by the storm. This process can be challenging and the Department of Insurance is available to help.”

The National Association of Insurance Commissioners has outlined the top five reminders that will assist consumers in the wake of a storm.

1. Key Coverage Information

Flood Insurance: Flooding—or an excess of water (or mud) on normally dry land—is not covered by a typical homeowners or renter’s insurance policy. Consumers who have purchased a flood policy from the National Flood Insurance Program (NFIP) should contact the insurance agent or company that wrote their policy to begin the claims process.

Sewer Backup Coverage: Ask your insurance agent or carrier if an endorsement for sewer backup coverage was added to your homeowner’s policy. If so, your losses may be covered if the water damage was caused by sewer lines backing up through your home’s drain pipes.

Loss of Use Coverage: If your loss was caused by a covered peril and the home is not fit to live in, you may be entitled to additional living expenses to maintain your normal standard of living.

Debris Removal: Most policies do not cover damage to trees or landscaping, but many policies have debris clean-up allowances. Check your policy and talk with your agent to see if your policy has this coverage.

Coverage for Other Structures: Damage to structures other than your house may be covered if connected to your house by a fence or utility line and the loss was caused by a covered peril, such as wind.

Deductible: Your deductible is the amount of the damage that you are responsible to pay. This amount could be different following a hurricane than it would be following another covered loss. If the cause of the loss is a named storm, it is likely you will be responsible for a percentage of the loss, based on the replacement cost. This percentage should be stated on your homeowners or renter’s declarations page. State laws differ on what designations trigger a hurricane deductible. If you question the deductible amount your insurance company expects you to pay, contact the Delaware Department of Insurance.

Business Interruption Coverage: It could be days before businesses in the most heavily affected areas can open again. Business interruption insurance covers lost earnings due to circumstances stated in your policy—such as fire or hail—that shut down your business for an extended period. Business interruption/continuation insurance covers expenses associated with running your business, like your payroll and utility bills, based on your company’s financial records. Business interruption/continuation may also help pay for the extra expenses to keep your business in operation until you recover. This coverage generally includes a waiting period that serves as the deductible.

You may have several different policies that cover all of the damages from the storm (a flood policy, a homeowners policy, an auto policy that may cover damage to your car from flooding), and it is likely you will have to file separate claims for each loss.

2. Protecting Your Damaged Property

If your home has damage, once it is safe, it is your responsibility to make sure that the damage is not made worse because you did not take action. That means if you have a part of your roof missing, it is your responsibility to make the effort to cover the hole. As part of your claim, your insurance company will typically reimburse the expense of these temporary repairs—assuming the loss was caused by a covered peril—therefore, retain all of your receipts. Before making any repairs, take photos of the damage. If you remove personal property from the home, do not dispose of it until an adjuster from your insurance company has reviewed it for your claim. Many policies include reimbursement for storage costs.

3. Contacting Your Insurance Company or Agent

If your area has storm damage, it is likely your local agent is dealing with the same issues. You should have a copy of your policy or insurance card with your disaster preparation materials, but if you do not, an insurance company representative should be able to help you find this information. Often insurance companies will mobilize disaster response teams to come to you following large-scale disasters. A disaster response team that comes to your area can help you figure out what damages are covered, can start your insurance claim and will often cut you a check toward that claim to help you start the recovery process.

The Delaware Department of Insurance will also help you find contact information for your insurance company following a widespread disaster. We can also help answer questions about your coverage or assist if you are having problems with your claim.

4. Power Outage

There are a couple things to know if you lose power. First, if a fallen tree is to blame for the power outage, it is possible that the cost to clean up the tree may be covered by your homeowners insurance. Additionally, you may have heard that the stockpile of food going bad in your refrigerator or freezer is covered by your insurance. It is true that a homeowners or renter’s policy does often allow for compensation for food losses up to a certain amount. However, this is generally a fairly low dollar value like $500.00. If your deductible (the amount of the claim you are responsible to pay) is equal to or greater than this, unless you have other losses, you probably cannot claim just the loss of the food.

5. Home Inventory

When you file a claim you will be asked to make a list of everything damaged or destroyed. This process can be easier with a good home inventory. If you do not have a home inventory, sit down as a family and make the list room by room. If you forget something in your initial list, you can add to it at a later date.

As you purchase new belongings, either update your home inventory if you already have one, or start an inventory. You can download the myHOME Scr.APP.book app for iPhone® or Android smart phones to get you started. The app. can be found on the Delaware Department of Insurance website and the app guides you through capturing images, descriptions, bar codes and serial numbers, and storing them electronically for safekeeping. The app also creates a back-up file for e-mail sharing. If you would rather do it by hand, a paper version can be downloaded also on our website. Once you have completed the home inventory, talk with your agent to make sure your homeowners or renter’s policy is adequate to cover your new investments.

More Information

These tips, along with other helpful information can be found on the Delaware Department of Insurance website at: www.delawareinsurance.gov. Please contact the Delaware Insurance Commissioner’s Office at 1-800-282-8611 with questions and inquiries about insurance. For more information about the National Flood Insurance Program, including guidance on filing a claim, go to www.floodsmart.gov/floodsmart/.

Commissioner Stewart would like everyone to be informed when it comes to insurance and the necessary steps to be prepared in the event of a natural disaster. Stewart shared that, “Delawareans reported over $7.4 million dollars in damages in 2012, as stated in a recent National Oceanic and Atmospheric Administration (NOAA) study on hazardous weather, fatalities, injuries, and damage costs. We will likely experience similar weather-related disaster issues this year. Proper planning and consumer awareness can keep a natural disaster from becoming an insurance calamity.”

WASHINGTON, D.C. (May 20, 2013) – Last week, Karen Weldin Stewart met with members of her Congressional delegation to discuss insurance issues affecting the Delaware residents. Commissioner Stewart joined insurance regulators from more than 35 states and territories in Washington, D.C. to meet with representatives from various federal agencies as well as their elected Members of Congress. Coordinated by the National Association of Insurance Commissioners (NAIC), the meetings enhance collaboration between state and federal officials on a national scale. “The intersection of state and federal policy has never been more critical to the insurance sector as it is right now,” said Commissioner Stewart. “My job is to protect consumers, and part of that is to ensure that decisions made in Washington are in the best interest of the citizens of Delaware.”
Regulators were briefed by Secretary Kathleen Sebelius, of the Department of Health and Human Services and Governor Daniel K. Tarullo, of the Federal Reserve Board. Congressman Randy Neugebauer of Texas, chair of the House Financial Services Subcommittee on Housing and Insurance, also addressed the group. Subjects discussed included the impact of Dodd-Frank and Affordable Care Act on states, the agenda of the House Financial Services Committee as well international regulatory developments. Commissioner Stewart was pleased with the outcome of the meetings and stated, “The First State is fortunate to have such dedicated representatives in Washington, D.C., and I look forward to working with them on all matters of insurance that impact the lives of Delawareans.”