Dover, DE – Delaware Insurance Commissioner Karen Weldin Stewart today announced action taken with respect to workers compensation insurance rates and loss costs effective December 1, 2012.

Commissioner Stewart approved an amended filing submitted by the Delaware Compensation Rating Bureau, Inc. (DCRB) which proposed an overall average increase of 14.6 percent in voluntary market loss costs and 19 percent in residual market rates.

The DCRB made an initial filing in August.  That filing was the subject of an intensive review performed under the direction of the Delaware Department of Insurance.  Two independent actuarial firms were hired to prepare reports in response to the DCRB filing.  A Target Examination of the DCRB’s data collection processes was conducted (which found the DCRB’s processes to be sound).  Public information sessions were held in Wilmington, Dover and Georgetown.  Written public comments were requested and received.  Finally, a public hearing was held, which provided opportunity for Delaware citizens, and representatives of Delaware businesses and local governments, to appear and offer comments.

The residual market rates and voluntary market loss costs that are included in the DCRB’s amended filing were approved after consideration of all available information, including public input.  The rates and loss costs in the amended filing are lower than those in the initial filing, which proposed an average increase of 43.5 percent in the residual market and 38.3 percent in the voluntary market loss costs. They are also significantly lower than the rates and loss costs recommended by the two independent actuarial firms. Commissioner Stewart stated “I recognize that any rate increase in the workers’ compensation system is going to be tough on businesses during this economic climate. The amended rates I approved were the best balance between the several considerations that bear on the workers compensation filing. Using the 2010 policy year, the range of savings between the DCRB original filed amount and the approved amount is estimated to be more than $22 million dollars.

Commissioner Stewart further stated, “I look forward to continuing dialogue and cooperation between the Department of Insurance, the Department of Labor, the Health Care Advisory Panel, the DCRB and other interested parties to better understand the Delaware workers compensation system and to identify potential opportunities to make that system more efficient and effective in serving all of the key constituencies of the Delaware workers compensation system.”

For businesses that are not currently enrolled in the Workplace Safety Program and would like to learn about additional savings in workers’ compensation costs; please contact the Office of Workplace Safety at the Delaware Department of Insurance at 302-674-7378.

Dover – As a result of a recently completed Market Conduct Examination performed by The Delaware Department of Insurance (DDOI), State Farm Fire and Casualty Company has been ordered to review its protocols regarding the application of underwriting guidelines for Delaware’s coastal region and adjusts the language included in non-renewal notices distributed by the company.

Following State Farm’s decision to not renew 509 of its more than 127,000 property policies in Delaware, DDOI conducted a Market Conduct Examination to ensure the company was acting within Delaware insurance laws and regulations related to property insurance under Title 18 Insurance Code, Chapter 41.

The Market Conduct Examination determined there was no unfair discrimination in State Farm’s underwriting decisions. However, the report did find that the non-renewal notices did not contain all the statutorily required information for consumers. As a result, State Farm will pay a $150,000.00 penalty, suspend coastal non-renewals for a period of 3 years (starting November 1, 2012) and agree to include additional information on future coastal non-renewal notices. Upon completion of the market conduct examination, Commissioner Stewart stated, “Our mission at the department emphasizes our role as a consumer protection agency. A resolution such as this, demonstrates our commitment to safeguarding Delawareans from any unfair insurance practices. I am extremely happy with this outcome.”

Under an agreement between DDOI and State Farm, the company will:

• review its procedures to ensure that the cancellation or non-renewal notice contains information advising the insured that the insured may file a written complaint about the cancellation with the DDOI,
• review its procedures to ensure the specific reason for non-renewal is provided on non-renewal notices,
• review its procedures regarding accepting and writing new business that may be contrary to its established underwriting guidelines, and
• review its procedures regarding maintaining correct and complete property addresses to ensure underwriting decisions based on location are applied fairly and consistently.

“We take our responsibilities to Delaware customers very seriously. Along with our responsibility to help our customers manage the risks of everyday life, we also have an obligation to provide timely information on non-renewals, including the reasons behind our business decisions that impact our policyholders, and their options while facing a non-renewal,” said State Farm’s Public Affairs Specialist Anna Bryant. “We worked with the Delaware Department of Insurance during this examination and reached an outcome that protects Delaware consumers and allows State Farm to manage its business effectively.”

The Delaware Department of Insurance Market Conduct Examination covered the experience period of January 1, 2009-November 1, 2011, and included a review of complaint handling, non-renewal practices, new business issued and in-force business.

State Farm Fire and Casualty Company is a member of the State Farm Holding Company Group and is a wholly owned subsidiary of State Farm Mutual Automobile Insurance Company, the nation’s largest automobile insurer. The State Farm Holding Company offers multiple lines multiple lines of property, casualty and life and health insurance throughout the U.S. State Farm Fire’s corporate offices are located in Bloomington, Ill. State Farm has more than 60 agents in Delaware.

Dover – The process of reconstructing your home following a loss can be long and laborious. Often before you can begin rebuilding, you have to navigate the insurance claims process. The Delaware Department of Insurance is aware of the fact that consumers are often confused and stressed by the claims process, and offers this summary to help manage the experience.

Filing a Claim

• Call the company or visit a mobile claims center to start your claim. If you cannot locate the company or agent’s number, call the consumer services division at the Delaware Department of Insurance at 1-(800)-282-8611.
• While your first instinct following a disaster may be to start cleaning up, it is important for your insurer to have an accurate account of the destruction. Before moving any debris or removing damaged belongings, make sure to take photos or video of the damage. Make a list to document these losses. If possible, save damaged items for the representative from your insurance company to review. You should also take reasonable steps to avoid further damage to your home.
• Even following a major disaster, most insurance companies have a time requirement for filing a claim. When calling to report the loss, have your policy information handy, along with current contact information and your home inventory, if you have one. Ask if your insurer plans to waive or extend claim-filing deadlines.
• A homeowners’ policy only covers damage to your home and its contents, and a renter’s policy only covers belongings. If your car was damaged, a separate claim will need to be filed with the auto insurer.
• A typical homeowners or renter’s policy does not cover flood damage. If you have a policy with the National Flood Insurance Program (NFIP), contact your agent or insurer to file a claim for that policy as well. Damage from a storm surge is considered flood damage.

The Claims Adjuster

There are two types of claims adjusters: company adjusters, who are sent by your insurance company and public adjusters, who are independent contractors.

• Company adjusters are direct employees of your insurance company. In most cases a company adjuster is going to be the first person to survey the damage to your home. A company adjuster will not charge you for their assessment.
• Public adjusters work for you, the insured, not the insurance company. They are paid from the proceeds of your claims settlement, typically as a percentage of the total amount you receive. Not all states allow public adjusters, but in states where they can work, they must be licensed by the state insurance department. Before engaging a public adjuster, be sure they are licensed and ask for references and qualifications. In addition, the adjuster should provide the fees for these services in writing. You may choose to hire a public adjuster if the claims settlement you get from your insurance company does not meet your expectation. The public adjuster will work with the company to try to negotiate a better settlement.

The Claims Process

• After you have filed your claim, the insurance company will arrange to send a claims adjuster to your home to assess the damage. The company adjuster will want to see all the damaged items you have removed from the home and any photos or video you have of things you removed to make the home safe. Generally, the more information you can provide the adjuster about the loss, the faster the claim can be settled.
• The company adjuster will walk through your home to look at the damage. If your home was damaged in a storm they may also want to look at the outside of your home, your roof or your basement.
• The claims adjuster will provide the documentation and their assessment of the loss to your insurance company to help determine your claims settlement.
• If your insurance company is not responding promptly to your claim, do not hesitate to call the claims department and find out if an adjuster has been assigned. Verify that they have your correct contact details, especially if you have had to evacuate your home. Your state has rules governing the claims handling practices. Call your state insurance department if you do not think your insurance company is responding quickly enough, or completing a reasonable investigation of your claim.
• If there are disagreements between you, the insurer and the adjuster, first try to resolve them with your insurer. Do not feel rushed or pushed to agree with something you are not comfortable with. It might help to have your contractor meet with you and the insurance adjuster. If you cannot reach an agreement with the company, call your state insurance department to see if you have an arbitration or mediation option.
• If you hire a public adjuster, they will review your insurance policy and then go through the same process of documenting and assessing the loss to your home. This may include a builder’s quote of the cost to rebuild, or even surveying the costs of items in the area to determine if they have increased since a widespread disaster.

Payment of the Claim

• When it comes to paying your claim, you may receive multiple checks. The first will likely be an emergency advance on the larger payment. The payment for the contents or personal property will be made out to you. However, if there is a mortgage on your home, the payment for structural damage may be payable to you and your mortgage holder. Lenders may put that money into an escrow account and pay for the repairs as the work is completed.
• If the contractor finds hidden damage that was not discovered in the original assessment, contact your insurance company to resolve the difference. The adjuster and the contractor may choose to meet at the house to review the newly discovered damage. If you cannot resolve the difference, contact your state insurance department to see what recourse you have.
• Even after you have settled your claim, if you think of items that were not in your initial loss list, contact your insurance company. Unless it has paid the entire limit for the coverage of those types of items, it is possible the company will cover the loss.
• In major disasters federal agencies provide grants and low-interest loans to assist with recovery. Check with the local disaster center or your state insurance department for more information if your loss exceeds the insured value of your home.

For assistance in filing a flood claim with the National Flood Insurance Program visit: www.floodsmart.gov. Consumers without insurance or individuals learn that they do not have enough coverage for the damages their home sustained can register for FEMA assistance at www.fema.gov. Additionally, information about the claims process and assistance on insurance matters is also available by contacting our office at 1-800-282-8611 (toll-free instate) or by visiting our website at: www.delawareinsurance.gov.

Dover – Insurance Commissioner Karen Weldin Stewart would like all Delawareans to be aware of the many insurance-related issues that they may encounter as they celebrate the holiday season. “During the season of giving many people are not thinking of insurance, however calamity and disaster do not take a holiday” said Commissioner Weldin Stewart.

In recent weeks, throughout the country there has been an increase in thefts of packages left by parcel-delivery services. Delivery services usually try to leave packages in inconspicuous spots, or at least ones that aren’t clearly visible from the street. But delivery workers extremely busy this time of the year and are not employed to find hiding places on front porches.

If you want to thwart the parcel thieves, consider these tips from Consumer Reports:

• Choose a shipping option that requires you to sign for delivery.
• Check on the package’s delivery status online so you can try to be home when it arrives.
• Leave a note asking the delivery service to leave the package with a neighbor.
• Have the package shipped to another location where someone can receive it, like your office or a friend’s home.
• Ask the delivery service to hold your package for customer pick-up.
• File a theft report immediately if you think your package was stolen, and contact your credit card company to find out if it offers a purchase-protection service that might reimburse you for stolen purchases.

Another important insurance tip for individuals giving a gift of 4-wheelers, dirt bikes, go-carts or snowmobiles- Be aware that these items are not protected against theft or damage under standard homeowner policies. To ensure coverage, you may need a rider or addition to your homeowners’ policy; or you may need a separate policy. Check with an insurance agent or company about how to provide coverage for such items.

Electronic equipment is a popular gift for which consumers may not have enough coverage. Many homeowner policies have limits for certain categories of items – for example, $5,000 total for all computer equipment in a home should it be destroyed or stolen. With the cost of computer equipment, I-Pods, video cameras, video game consoles, digital cameras and stereo and video equipment, those limits can quickly be exhausted. Check with your insurance company or agent about whether you may want to purchase additional coverage to cover your electronic goods.

Jewelry is also often subject to a category limit. Many policies have a maximum limit of $1,000 for all the jewelry in a home in case of theft. Again, check with an agent or company if you want to expand your coverage. The recent survey revealed 59 percent of consumers have not made a list or inventory of their possessions.

Commissioner Stewart recommends that Delawareans create a home inventory, “Creating a detailed inventory of your possessions is one the best ways to ensure you have the right amount of homeowners or renters insurance for you and your family.” A recent study performed by the National Association of Insurance Commissioners shows that 48 percent of home inventories do not have receipts; 27 percent do not have photos of their property; and 28 percent do not have a back-up copy of the inventory outside the home. Additionally, 59 percent of people with inventories have not updated their inventories in more than a year, meaning new purchases and gifts may not be covered.

Commissioner Stewart suggests, “In addition to creating a paper version of a home inventory found on the Department of Insurance Website, using the “ myHOME Scr.APP.book” app for both iPhone® and Android® smart phone users will help to simplify the process. The app is free and makes it easier for consumers to document their valuables, update their inventories and store the information for easy access.”

When traveling during the holidays, people should remember that lost or stolen luggage – even if it is stolen out of your car – is often covered under their homeowners insurance. However, as always, you should check your deductible before making a claim and make sure the loss is one that is worth reporting.

If you are traveling, know what provisions of your health insurance may apply if you require medical care while away from home, especially if you are in a health plan that has a network of providers. In a true emergency situation, you should always seek immediate care at a hospital. But if your condition is not an emergency, contact your insurance company using the phone number on your insurance card for direction to an approved medical facility. Finally, almost all policies require that you contact your family doctor and insurance company within 48 hours of receiving such care.

For additional information on the topics discussed and additional insurance matters, please contact our office at 302-674-7300 or 1-800-282-8611 (toll-free in state). You can also visit our website at: www.delawareinsurance.gov

Dover -The public hearing scheduled for November 20, 2012 has been re-scheduled to December 20, 2012 to provide the Delaware Department of Insurance the opportunity to perform a complete target examination prior to the public hearing.

The PUBLIC HEARING will be held on Thursday, December 20, 2012, at 10:00 a.m. at the Carvel State Office Building, 820 North French Street, 2nd Floor Auditorium, Wilmington, DE 19801.

Pursuant to 18 Del. C. §§ 2605 and 2610, and 29 Del. C. §§ 10121-29, the purpose of the hearing is to allow for public comments and to determine whether a particular proposed rate is excessive, inadequate, or unfairly discriminatory and whether such rate is in compliance with Chapter 26 of Title 18 of the Delaware Code, namely, Delaware Compensation Rating Bureau Filing No. 1201 filed with the Delaware Department of Insurance on August 14, 2012. The docket number assigned to this hearing is 2074-2012.

The hearing will be conducted in accordance with the Delaware Administrative Procedures Act, 29 Del. C. Chapter 101. A party has the right to present evidence, be represented by Delaware counsel, and to appear personally or by other representative. The Delaware Department of Insurance is obligated to reach its decision based on the evidence received.

Comments are being solicited from any person. Comments may be in writing or may be presented orally at the Hearing. Written comments must be received no later than Thursday, December 13, 2012 by 4:30 p.m., and should be addressed to the attention of Rhonda West, Regulatory Specialist, Delaware Department of Insurance, 841 Silver Lake Boulevard, Dover, DE 19904. Also, those intending to provide oral comments at the hearing must notify Rhonda West at 302.674.7379 or Rhonda.West@delaware.gov, no later than 4:30 p.m., Thursday, December 13, 2012.