Dover, DE-October 11, 2012-Commissioner Karen Weldin Stewart is encouraging people with Medicare and their families to begin reviewing drug and health plan coverage options for 2013. Commissioner Stewart reminds Delawareans that this year, seniors with Medicare now have access to cheaper prescription drugs, free preventive services, and lower costs.

“The Medicare Open Enrollment Period — which begins Monday, October 15 – has been expanded to last seven weeks and will end on December 7. This will give seniors and people with disabilities more time to compare and find the best plan that meets their unique needs”, said the Commissioner.

Beginning on October 16th, the Department’s ELDERinfo unit will be conducting a series of “Yearly Medicare Prescription Drug Check-ups” throughout Delaware.  You can find a date and location convenient to you by visiting the ELDERinfo Outreach Calendar on the DOI website at http://www.delawareinsurance.gov/departments/elder/elderinfo_calendar.shtml

“In 2013, people with Medicare can get certain preventive services for free and can get more affordable prescription drugs,” said Commissioner Stewart. “Open enrollment is seniors’ chance to review their Medicare choices and pick the plan that works for them, or keep the plan they have today.”

Using Medicare’s Plan Finder – available at www.medicare.gov/find-a-plan – Users will see an icon showing which plans received a low overall quality rating for the past three years.  Due to the passage of the Affordable Care Act, additional benefits are available to people with Medicare, which include lower prescription drug costs through a 52.5 percent discount on covered brand name drugs in the coverage gap (also referred to as the “donut hole”), wellness checkups, and access to certain preventive care with no copayments – a benefit that all Medicare Advantage plans started offering in 2012.

Beneficiaries or their care givers seeking additional help can contact ELDERinfo, in-state, toll-free at 800-336-9500

Additional resources can be accessed by:

•       Visiting http://www.medicare.gov/, for a personalized comparison of costs and coverage of the plans available in their area. The popular Medicare Plan Finder tool has been enhanced for an efficient review of plan choices.  Spanish Open Enrollment information is available.

•       Calling 1-800-MEDICARE (1-800-633-4227) for around-the-clock assistance to find out more about coverage options. TTY users should call 1-877-486-2048. Multilingual counseling is available.

•       Reviewing the 2013 Medicare & You handbook. It is also accessible online at: http://www.medicare.gov/publications/pubs/pdf/10050.pdf — and it has been mailed to the homes of people with Medicare.

People with Medicare who have a limited income may qualify for Extra Help to pay for their prescription drug costs.  There is no cost to apply for Extra Help, also called the low-income subsidy, call ELDERinfo to find out more.

Protecting Against Fraud and Identity Theft

During this Open Enrollment Period, Commissioner Stewart recommends that people treat their Medicare number as they do their social security number and credit card information. People with Medicare should never give their personal information to anyone arriving at their home uninvited or making unsolicited phone calls selling Medicare-related products or services. Beneficiaries who believe they are a victim of fraud or identity theft should contact Medicare (contact information above). If you suspect you are the victim of Medicare fraud, call 1-800-223-9074. More information is available at www.stopmedicarefraud.gov

DOVER – INSURANCE COMMISSIONER KAREN WELDIN STEWART, CIR-ML, hereby gives notice that a PUBLIC HEARING will be held on Friday, November 2, 2012, at 10:00 a.m. at the Department of Justice, 820 North French Street, 6th Floor, 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 Friday, October 19, 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., Friday, October 19, 2012.

Members of the public may view this filing in advance of the session by going on-line to the Delaware Compensation Rating Bureau website, click on “Filings”, and then click on “Filing No. 1201 December 1, 2012 Rate and Loss Cost Filing.”

Dover, DE – Economic opportunity, triple digit tax revenue growth, and the recognition of Delaware as an insurance industry leader are the ways to describe Insurance Commissioner Karen Weldin Stewart’s captive insurance program. Today, Commissioner Karen Weldin Stewart is proud to announce that under her leadership, The Delaware Department of Insurance has given $250,000 to the City of Wilmington due to the success of the Captive Bureau at the Delaware Department of Insurance.

The Delaware Code Title 18 Chapter 69 provides for the ability of the Commissioner to transfer monies to the General Fund in excess of the funds that would be reasonable to fund the Captive Insurance Program for the upcoming year. If such funds are transferred pursuant to Delaware Code Title 29 Chapter 23 §2311 (2) those funds will be remitted to the City of Wilmington by the Secretary of State. The Commissioner is exercising that authority.

Since forming the captive bureau in 2009, the Department of Insurance has experienced a 800 percent growth rate in the number of licensed captive insurance entities.  “In 2009 when I started the captive bureau, we had 38 captive insurers.  At the end of 2011 there were 338 captive risk bearing entities that generated nearly $1 billion of insurance premium.  I attribute this growth to innovative designs in alternative risk transfer that maximize the power of the Delaware’s corporate and business entity laws,” said Commissioner Stewart.  Delaware is now in the top five of U.S. captive domiciles and one of the top 15 in the world.  Captive insurance is also a new source of revenue for the state.  “In 2008 I campaigned on a platform of building Delaware’s captive insurance industry.  Through the efforts of my capable captive staff, we have developed a new source of revenue for today and the future.” In 2011 the captive bureau generated more than $1.2 million in tax revenue, which is a 100 plus percent increase from the $600,000 generated in the captive bureau’s first year of existence.  Additionally, there are more than 300 captive risk bearing entities regulated by the captive bureau that are also Delaware domiciled business entities, which generates revenue for the Secretary of State. The revenue amount that has been collected for 2012 has exceeded the operating costs for the captive bureau and the excess amount was then transferred to the Secretary of State and directed to the City of Wilmington.

Captive insurance is a form of self-insurance where a business owner forms their own insurance company to insure their own risk.  Since the owner is insuring itself, captive insurance is an incentive to avoid behaviors that lead to insurance losses.  By reducing losses, the business owner can invest dollars formerly used to pay claims back into the business to create jobs.

In terms of jobs and economic opportunity, the captive program has exceeded expectations. “In addition to providing economic growth for many professional service firms in Delaware, the Captive insurance bureau has generated revenue for the state during this very difficult financial time.” Stewart added, “I am proud of my captive team for its hard work.  The growth of the captive insurance industry means jobs, revenue, and wealth for Delaware – and that’s good for Delaware.”

Insurance Commissioner Karen Weldin Stewart Applauds Resolution of AIG Workers Compensation Premium Tax Inaccuracies

Dover – Delaware Insurance Commissioner Karen Weldin Stewart announced today that Delaware, as a lead state, will receive one million, eight hundred and twenty thousand and two hundred and ninety-seven dollars ($1,820,297) from AIG and its workers compensation insurance affiliates. The payment is part of an agreement in which AIG will pay a $100 million penalty to insurance regulators in all 50 states and the District of Columbia for alleged premium under-reporting under a settlement announced today by Commissioner Stewart and the regulators of the other seven lead states who led the examination. The company will also pay approximately $46.5 million in additional taxes and assessments. This resolves a multi-state probe that examined whether AIG violated premium reporting rules governing workers compensation insurance.

The multi-state examination was led, along with Delaware, by Florida, Indiana, Massachusetts, Minnesota, New York, Pennsylvania and Rhode Island. All the other states and the District of Columbia are Participating States. The scope of the examination was AIG’s writing and financial reporting of workers compensation insurance. The Examination found noncompliance with financial reporting laws. Most significantly, it found that the Company misreported $2.12 billion of workers compensation premium that was reported instead as general or commercial automobile liability premium.

Under the terms of this settlement, AIG will:

• pay a $100 million fine to be apportioned among all the participating states;
• pay approximately $46.5 million in additional taxes and assessments;
  enter into a compliance plan containing agreed-upon specific steps and standards for evaluating AIG’s ongoing compliance with
• workers compensation insurance rating and reporting requirements;
• submit to periodic internal and state monitoring and a confirmatory examination at the end of 24 months; and
• agree to pay a contingent potential fine of up to $150 million if AIG fails to meet the terms of the compliance plan.

Commissioner Stewart stated, “Accurate company financial data is an essential ingredient of proper insurance regulation. While, in these difficult economic times, the revenue coming to the state as a result of this agreement is important and necessary, what is equally critical is the role that state regulation played in insuring that the public interest is well served.”

Dover – On June 6, twenty-five participants will complete the captive insurance risk management certificate program offered by University of Delaware in partnership with the Delaware Department of Insurance.

Owned by the entities they insure, captive insurance companies are formed by businesses and organizations to better manage the cost and administration of their insurance coverage. This new program is aimed at financial and insurance service professionals who wish to offer such options to their clients.

The fourteen-week program provided practical-up-to-the-minute information on the foundation of captive insurance; the nuts and bolts of captive operations; capital planning, accounting and regulation; and captive applications for corporate enterprise.

Delaware prides itself on being the state of choice for corporations and business entities. Across the U.S. and worldwide, over a million business entities have their legal home in Delaware, including more than 50% of all U.S. publicly-traded companies and 63% of the Fortune 500.

Delaware Insurance Commissioner Karen Weldin Stewart notes that this program showcases the Department of Insurance’s commitment to Governor Markell’s focus on enhanced state performance measures with a strong emphasis on education and job creation. Commissioner Stewart said, “Delaware’s sophisticated corporate laws, judiciary and financial infrastructure make it the preeminent jurisdiction for business.” Commissioner Stewart believes that recent legislation over the last few years has created a more modernized Delaware law regarding the formation of captive insurance companies. “Delaware is now poised to become the home to the growing number of such companies being created by organizations worldwide,” said Stewart.

Each topic in the 14 session certificate program was taught by certified professionals who are nationally recognized leaders in the captive insurance industry.

Commissioner Stewart shared, “The captive certificate program was extremely successful and we look forward to future collaborative efforts between the Delaware Department of Insurance and the University of Delaware.” The graduation ceremony will take place at 6 p.m. at the University of Delaware Wilmington Campus, 2800 Pennsylvania Avenue, Wilmington, Delaware.

For more information about the Captive Insurance Risk Management Certificate and other programs offered by the Delaware Department of Insurance call 302-674-7300 or visit www.delawareinsurance.gov.