Hurricane season is less than a month away. According to Commissioner Karen Weldin Stewart, now is the time to prepare. The Weather Channel released its first 2013 Atlantic hurricane season outlook, calling for another active season. Last year, there were nineteen named storms, ten hurricanes and two major hurricanes, the most destructive of which was Super Storm Sandy which swept through the East Coast of the United States in late October. Many property owners do not know the basics about flooding or flood insurance. To make informed decisions, residents and business owners need a solid understanding of their flood risk and how flood insurance can help. The following are important facts and figures gathered by the Federal Emergency Management Agency (FEMA) which may serve to be useful information to help reduce the financial impact of flooding:

• Federal disaster assistance is usually provided in the form of a loan that must be paid back with interest along with any existing mortgage.
• Flood losses in the United States averaged $2.9 billion per year for the last decade.
• Nearly 75 percent of all federally declared disasters over the past five years involved flooding.
• Floods are the number one natural disaster in the United States.
• Everyone is at risk-even those that do not live close to rivers and lakes. Floods happen as a result of heavy rains, snow melt, overloaded drainage systems, land development runoff, and for many more reasons. Just an inch of water can cause tens of thousands of dollars in damage to your home and its contents.
• Most homeowners insurance does not cover flood damage.
• Over the life of a 30-year loan, your home, if located in a high-risk flood area, is more likely to be damaged by flood than by fire.
• More than five million Americans are protected with flood insurance, but millions more are unaware of their personal risk for property damage-or options for reducing that risk.
• Property owners, renters, and business owners can purchase flood insurance on their building and contents if their community is among the more than 21,800 communities that participate in the National Flood Insurance Program (NFIP).
• It typically takes 30 days after the purchase of flood insurance for the policy to take effect.
• The average premium is around $640 a year; the average claim in the past five years was more than $35,000.
• More than 20 percent of all flood claims come from areas mapped outside high-risk flood zones.
• Qualifying properties in moderate- to low-risk areas are eligible for the low-cost Preferred Risk Policy with premiums as low as $129 a year for $20,000 in building and $8,000 in contents coverage.

Commissioner Karen Weldin Stewart would like all Delawareans to be safe and be informed. Commissioner Stewart expressed that, “Being prepared in case of a natural disaster can save lives, property and a lot of heartache. The planning that homeowners and business owners do can keep a natural disaster from becoming an insurance disaster.” For more on flood insurance and flood risk information, visit http://www.FloodSmart.gov/facts. Also, visit our website for information related to storm preparedness: http://www.delawareinsurance.gov/departments/consumer/StormPrepare.shtml

Commissioner Karen Weldin Stewart announced today that beginning in 2014, the Delaware Health Insurance Marketplace will operate a small business health options program, or SHOP, that offers small businesses and their employees’ new choices. In the first year, employers can offer employees Qualified Health Plan (QHP) coverage through the SHOP, where the employer will choose the plan and benefit level. It is anticipated that for future years employers will choose a set of plans offered through the Health Insurance Marketplace, and employees will be able to select coverage from among those plans.

The Delaware Health Insurance Marketplace will make it easy for small businesses to compare health plans, get answers to questions, and enroll in or offer to employees a health insurance plan that meets their needs. Small businesses may also be eligible for the tax credit for coverage purchased through the Marketplace.

Commissioner Stewart stated, “The Health Insurance Marketplace offers Delaware small businesses choice. Insurance companies will compete for business fairly, and this level of competition will drive down costs.”

• Beginning in October 2013, small employers will be able to compare all small group plans offered through the Marketplace and select one plan in which their employees may enroll.
• Plans offered through the SHOP will meet all of the certification and quality standards required by the State of Delaware and the Affordable Care Act.
• For coverage starting in 2015, small employers will be able to select a set of plans from which their employees may choose the most appropriate coverage.

Through 2013, your company may be eligible for a small business premium tax credit of up to 35 percent of your business’ share of the employees’ premium. To be eligible, your company must:

• Have fewer than the equivalent of 25 full-time workers,
• Have an average annual employee wage below $50,000, and
• Cover at least 50 percent of the cost of health insurance coverage.

Starting in 2014, the maximum tax credit increases to 50 percent of the employer’s share of health insurance coverage, but is available only to small employers who purchase coverage through the SHOP. This larger tax credit will be available for two years. Non-profit employers meeting the eligibility criteria can receive credits for 25 percent of the employer’s share of premium costs through 2013 and 35 percent of these premium costs for two years starting in 2014. For more information on the Small Business Health Options Program (SHOP) please visit: http://www.healthcare.gov/marketplace/small-businesses/index.html.

Our newsletter is all about you, the Consumer. In the Spring 2013 issue, the Delaware Department of Insurance has information for everyone, from the youngest in the state to older Delawareans. Our Department will be at fairs, community meetings and other events in the upcoming months and we hope to see you as we travel the state and offer our services to the community.

Also, June is National Safety Month and we would like to share safety measures that can be performed in your homes and at your places of work.

In the “Ask the Commissioner” section, we share some emergency preparedness tips as hurricane season is quickly approaching.

We hope you enjoy our newsletter and find the articles to be helpful. The Department of Insurance is here to serve you because, “The Consumer Comes First!”

Visit our website to subscribe to this quarterly newsletter.

Dover, DE–The Delaware Department of Insurance announces today that the final projection for the number of captive licenses the captive bureau anticipates issuing for 2012 and the projected premium tax revenue is on a rise. Steve Kinion, Captives Director for the Delaware Department of Insurance, presented the following data:

• The 2012 additions are 59 captives, 1 cell, and 179 series units. The total number of licenses issued for risk bearing entities will be 212 captive companies, 12 protected cells, and 364 series business units. The total number of captive licenses issued will be 588. Not all of the licenses issued since the adoption of the captive law in 1984 remain active and over the course of time, Delaware has seen 22 captive companies dissolve or re-domesticate, one cell dissolve, and 6 series dissolve.
• Active license numbers are 190 active companies, 11 protected cells, and 358 series business units. The total active captive entity count is 559.
• In 2011 the Bureau added 58 captives, 3 protected cells, and 152 series. The total number of licensed risk bearing entities was 153 captive companies, 11 protected cells, and 185 series business units. The entity total for licenses issued was 349.
• Even though the captive bureau added the $1,800 series unit application fee, and imposed more stringent regulatory standards in 2012, it was the best year ever for captive growth. The total entity growth rate from 2011 to 2012 is 68%.
• The total captive company growth rate is 38.5%.

Delaware Captive Director, Steve Kinion, stated that “This level of growth is unprecedented in the captive insurance world. Considering that when Commissioner Stewart formed the captive bureau in July 2009 there were only 38 captive insurers, we have achieved a 558% growth rate in terms of licensing captive companies, and a 1,500% growth rate in total licensing of captive entities.”

This year’s growth may catapult Delaware over Hawaii into being the third largest U.S. captive domicile in terms of active captives behind Utah and Vermont. The forecasted premium tax revenue for 2012 is $1.5 million compared to the 2011 premium tax amount which was $1,232,823. The forecasted tax revenue increase from 2011 to 2012 is 21.6%.

Commissioner Stewart is elated with the performance of the Captive Bureau. Although captive insurers will pay their 2012 premium taxes on March 1, 2013 and the exact premium revenue will not be determined until late March or early April Commissioner Stewart believes that the Delaware Department of Insurance is moving in the right direction. Stewart expressed that, “Based on the numbers we already have, I am very pleased with the success we have experienced in our captive division. I believe that we will continue to see steady growth in captives and I credit my team at the Department of Insurance for their successful efforts in making Delaware more competitive in this global arena of insurance.”

For more information on Captive Insurance please contact our Bureau of Captive & Financial Insurance Products at (302) 577-5280 or visit our website at: www.delawareinsurance.gov.

As we begin the New Year, Commissioner Karen Weldin Stewart and the Delaware Department of Insurance would like to share a few helpful tips related to insurance coverage.

Homeowners/Renter’s Insurance

This is a great time to update your home inventory and make sure your homeowners or renter’s policy is up-to-date. Before placing your decorations back in storage, take some photos or video of your holiday belongings. Do not forget to make note of any antique items and their value so you can talk with your insurance agent to ensure that they are properly covered.

If you are starting a home inventory from scratch, the National Association of Insurance Commissioners (NAIC) has created a free smartphone app, myHOME Scr.APP.book. This app takes some of the headache out of the process and can be found on our website, http://www.delawareinsurance.gov/.

Now that you have opened all your holiday gifts, remember to add them to your home inventory, as well. Include as many details as you can and take a photo of each item. Most basic home insurance policies have standard limits for big-ticket items like electronics, art, jewelry or sporting equipment. You may need special coverage, so be sure to call your agent as soon as possible to discuss changes for your policy.

Auto Insurance

Winter can be a challenge for all drivers. Whether you are trying to escape the weather for someplace warmer or just preparing for the first drive to work in the snow, there are a few insurance items you should review.

To make sure you are winter-ready, check your auto insurance policy. Here is a quick reference on how to read your declarations page.

Make sure your coverage is appropriate for your life situation. Liability is the part of the policy that pays for any injury or damage if you cause an accident. If your liability insurance is too low, it is possible that you could be sued for any damages above your liability limits.

Also take a look at your deductibles for comprehensive and collision coverage. This is the amount you will pay if your car is damaged or totaled without fault of another driver. Raising or lowering this amount can affect your premium.

Before hitting the road, make sure you have a copy of your insurance card and your insurance agent or company’s number in the car. It is also a good idea to have a way to record details of an accident if you are in one. The NAIC smartphone app “WreckCheck” walks you through the process of gathering information following an accident. You can then email your notes directly to your agent. This app can be downloaded for free and can be found on our website at http://www.delawareinsurance.gov/.

Health Insurance

Many families have recently gone through the open enrollment process for their health insurance at work or the Medicare Open Enrollment process. You may be receiving new insurance cards and paperwork related to health insurance matters in the mail. It is a good idea to get all this information together before winter illness or accidents happen.

Make sure to check your provider lists to verify visits to your doctor and any specialists are still covered by your policy, as in-network or preferred provider lists change from year to year. Also read through your documents and make note of your copays for in-network and out-of-network providers so you are not surprised later.

When you’re planning a vacation away from home, you should check with your insurance carrier to identify urgent care centers and hospitals that accept your insurance coverage near your destination and along the way. Be sure to ask your carrier about applicable co-pays and deductibles if care is needed.

If you have questions about your insurance options or about your insurance coverage, please call the Delaware Department of Insurance at 302-674-7300 or toll-free (in-state) at 282-8611. We are also available online at www.delawareinsurance.gov and on Facebook at www.facebook.com/Delawareinsurance