Would You Be Covered If Your Home Flooded?

Commissioner Stewart Offers Tips on Flood Insurance

​DOVER, DE – According to Delaware’s Department of Natural Resources and Environmental Control (DNREC), more than 331 square miles, or 17 percent, of Delaware’s land mass is within a high risk flood zone, including more than 18,000 structures statewide. Insurance Commissioner Karen Weldin Stewart and the National Association of Insurance Commissioners offer the following information to help you get smart about your flood insurance options.

Many people don’t know that a standard homeowners or renters insurance policy almost never covers damage to your home or its contents due to flood waters. If your home were to flood tomorrow, would you be covered by your insurance? Do you even know your home’s risk potential for a flood? Before you can decide what sort of coverage you may need, you need to know your risk.

To learn about your home’s risk for flooding visit our Flood Insurance webpage, http://delawareinsurance.gov/departments/consumer/flood.shtml, which has links to county-specific flood maps from DNREC and links to additional maps from FEMA.

Just because you don’t live near a body of water doesn’t mean that you’re safe from flooding. According to the National Flood Insurance Program (NFIP), floods are the number one natural disaster in the U.S., and consumers outside of high-risk flood areas may account for more than one in five flood insurance claims. The NFIP helps communities understand their risk by providing flood maps. Risk levels are divided into three categories:

• High-risk areas have at least a 1 percent chance of flooding annually. All homeowners in these areas with mortgages from the federally regulated or insured lenders are required to buy flood insurance.
• Moderate-to-low-risk areas have less chance of flooding annually, but the possibility is not completely removed. Flood insurance in these areas is not required, but it is recommended for all property owners and renters.
• Undetermined-risk areas are where flood-hazard analysis has not been conducted, but a flood risk still exists.

So if you’re at risk, are you covered? Generally, homeowners insurance does not offer protection against flood losses. You should check your policy under “exclusions.” If coverage for flood damage exists, it will probably be listed under “water damage.” Contact your agent or insurer to find out more about what your current policy covers.

While some private companies offer flood insurance, most flood insurance in the U.S. is backed by the federal government under the NFIP. It may be purchased through licensed property and casualty insurance agents or through many private insurance companies. Typically, there’s a 30-day waiting period from date of purchase before a policy goes into effect. There are also eligibility restrictions to qualify for National Flood Insurance. Please contact the NFIP with eligibility questions at (800) 427-4661 or visit the NFIP’s website, www.floodsmart.gov.

The standard flood insurance policy covers direct physical damage to your insured property up to the replacement cost or actual cash value of damages, or the policy limit of liability, whichever is less. It covers structural damage, including damage to the furnace, water heater, air conditioner, flooring and debris clean-up. Coverage for basements, crawlspaces and ground-level enclosures on elevated homes is limited, so talk to your agent about any restrictions in your policy. The contents of your home are not covered under a standard flood insurance policy.

Flood insurance generally covers damage caused by hurricanes, rivers, and tidal waters extending over at least two acres. Flood insurance covers overflow, inland or tidal waters, and unusual and rapid accumulation or runoff of surface waters of any source. The flood must be a general and temporary condition. Flooding from wind-driven rain entering through a wind-damaged window or door, hole in a wall, or the roof is typically not covered by a flood policy, but is generally included in most homeowners policies.

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The Delaware Department of Insurance mission: Protecting Delawareans through regulation
and education while providing oversight of the insurance industry to best serve the public.

For Immediate Release

Media Inquiries? Contact:  Jerry Grant at (302) 674-7303

Commissioner Stewart Celebrates Stepping Stones Credit Union’s
Partnership with Federal Home Loan Bank of Pittsburgh

House Bill 15 Encourages Delaware-domiciled Captive Insurers to Join FHLBank System

(DOVER, DE) – Commissioner Karen Weldin Stewart joined with Senator Tom Carper and state and federal banking officials on Monday, June 29 to celebrate Stepping Stones Community Federal Credit Union’s joining forces with the Federal Home Loan Bank of Pittsburgh to make more affordable housing dollars available to people who live or work in Wilmington.

Commissioner Stewart also announced that House Bill 15, signed into law by Governor Jack Markell on June 24, specifically states that Delaware-domiciled captive insurance companies may apply for membership in the FHLBank system.

“Partnering with the FHLBank of Pittsburgh allows Stepping Stones to expand the good work it’s been doing throughout Wilmington,” Stewart said at the ceremony, which took place across from Stepping Stones headquarters on North Church Street in Wilmington.  “And I know the increased liquidity provided by the FHLBank of Pittsburgh will only make Stepping Stones stronger.”

Since 2011, Stepping Stones has been serving its members in and around Wilmington with financial counseling and products including savings accounts, car loans, first mortgage loans and fixed and adjustable mortgages. Part of the Federal Home Loan Bank System,  FHLBank Pittsburgh serves financial institutions in Delaware, Pennsylvania and West Virginia, and will help Stepping Stones leverage its efforts in the low-income market it serves.

Captive insurance companies are owned by the entities that they insure, and are formed by businesses that wish to manage the cost and administration of their insurance coverage more efficiently. During Stewart’s administration, the captive division has flourished, growing from 38 companies in 2009 to over 1,000 entities today.

“As insurance commissioner, I am always looking for new ways to benefit my constituents,” said Stewart. “By coupling the FHLBanks and insurance companies, I am increasing the pool of money available for affordable housing opportunities to improve the lives of many Delawareans.” When insurance companies of all types borrow monies from the FHLBank system, the interest they pay on the borrowed funds is income for the FHLBanks. Each FHLBank is required to set side ten percent of its annual net earnings for affordable housing programs.  “I strongly encourage captive insurers to consider becoming members of FHLBank Pittsburgh.”

The FHLBank Pittsburgh’s affordable housing program provides grants and subsidized loans for costs associated with the acquisition, construction or rehabilitation of single or multi-family housing for individuals and families with incomes at 80 percent or less of the area median income.

In 1932, Congress established the FHLB system to fill a need for a stable source of funds for residential mortgages.  The FHLBs provide cash advances to their nearly 8,000 members, which include insurance companies, community banks, thrifts, credit unions, and community development financial institutions.  Members of the FHLB system use their access to FHLB credit to help finance affordable housing and economic development efforts in their service areas.

House Bill 15 is one more step in Stewart’s ongoing effort to improve Delaware’s insurance laws.  In 2014, she supported legislation that equalized the treatment for FHLBanks when lending to insurance companies regulated under state insolvency laws. FHLBanks now have the peace of mind to know that when making a loan to a Delaware domiciled insurer, their right to the collateral is protected and treated in the same manner as when FHLBanks lend to FDIC-insured depository institutions governed by federal banking law. Stewart noted, “Delaware is one of the only states that guarantee this level of protection to the FHLBanks.”

Another important part of House Bill 15 is providing clarification of the term “series captive insurance company.”  A series captive insurance company is an insurer whose organizational status is as a series either under Delaware’s Limited Liability Company Act or Statutory Trust Act.  Five years ago Delaware pioneered the licensing of series as captive insurance companies and this type of captive has become the flagship product.  Since 2009, Delaware has issued captive insurance licenses to 754 captive insurers whose organizational status is as a series.  House Bill 15 defines what a series captive insurance is and what it can do.  Delaware’s captive insurance program is built upon Delaware’s respected corporate and business entity laws.  “One of the reasons that the captive insurance program is successful is because I am promoting the formation of captive insurers under the laws of Delaware” said Stewart.

Since becoming insurance commissioner in 2009, Stewart has transformed Delaware into the nation’s third largest captive insurance domicile and the sixth largest in the world.  She has also made Delaware the number one state for the formation of risk purchasing groups.  “The captive insurance program under my administration is a clean, non-polluting industry that provides economic opportunities by attracting intelligent human capital and generating an annual surplus of tax and fee revenue for Delaware.  I am very proud that this program benefits my constituents.”

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Delaware’s Captive Insurance Program: http://captive.delawareinsurance.gov/

The Delaware Department of Insurance mission: Protecting Delawareans through regulation
and education  while providing oversight of the insurance industry to best serve the public.

Delaware Department of Insurance | www.delawareinsurance.gov | 302.674.7300

More news from the Department of Insurance: http://www.delawareinsurance.gov/newsroom.shtml

Media Questions? Contact Jerry Grant at (302) 674-7303

For Immediate Release | Contact: Jerry Grant | (302) 674-7303

 DOVER, DE – Commissioner Karen Weldin Stewart announced today that the Department of Insurance has posted the recent rate request filings from Highmark Blue Cross Blue Shield of Delaware, Aetna Health Inc., and Aetna Life Insurance Co. on the DOI website at http://www.delawareinsurance.gov/departments/rates/ratefilings.shtml.

The rate postings also provide access to the insurers’ justifications for the requests and other supporting data offered by Highmark and Aetna.  The Affordable Care Act requires insurers seeking rate increases over 10% to supply such information, which can also be accessed at the Rate Review page at www.Healthcare.gov.

DOI announced last week that Highmark is asking for a 25.4% increase in the individual market, and Aetna requests a 16% increase. In the small group market, Highmark seeks a 12.7% increase, while Aetna asks for a 6.1% decrease.

Commissioner Stewart also announced last week that DOI will conduct public information sessions to receive comment on the proposed rate increases.  Detailed information on time and location of the sessions follows:

• Monday, June 15, 1:00pm     Delaware Tech Owens Campus, College Theater (Arts & Science Center), 21179 College Dr., Georgetown

• Monday, June 15, 6:00pm    Delaware Department of Insurance, 841 Silver Lake Blvd., Dover

• Tuesday, June 16, 6:00pm   Carvel State Office Building, Auditorium/Mezzanine Level, 820 N. French St., Wilmington

Representatives from Highmark and Aetna will be present at each session. Consumers and interested parties may also submit written comments to the Department at ratedivision@delaware.gov through July 15, 2015.

For more information on the sessions, call 302-674-7303.

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Delaware Department of Insurance | www.delawareinsurance.gov | 302.674.7300

More news from the Department of Insurance: http://www.delawareinsurance.gov/newsroom.shtml

Highmark, Aetna Request Significant Health Insurance Rate Increases
Commissioner Karen Weldin Stewart Vows Vigorous Review

(DOVER, DE) Commissioner Karen Weldin Stewart announced today that she has received rate request filings from Highmark Blue Cross Blue Shield of Delaware and Aetna, Inc. for individual and small group plans to be offered on Delaware’s Health Insurance Marketplace in 2016.  Highmark is asking for a 25.4% increase in the individual market, while Aetna requests a 16% increase. In the small group market, Highmark seeks a 12.7% increase, while Aetna asks for a 6.1% decrease.

“Large rate increase requests like these are occurring in several states across the country and I know they will cause a hardship for many Delawareans,” said Stewart. “The increases are substantial and I’m going to do my best to reduce them. I am instructing my actuaries to examine vigorously Highmark’s and Aetna’s supporting data for the requests.”

Commissioner Stewart also announced that the Insurance Department will conduct public information sessions in June to receive comment on the proposed rate increases.  The sessions will take place at the following locations in the three counties:

Monday, June 15   1:00pm    Del Tech Owens Campus, Georgetown

Monday, June 15   6:00pm    Insurance Department, 841 Silver Lake Blvd., Dover

Tuesday, June 16   6:00pm    Carvel State Office Building, 820 N. French St. Wilmington

Representatives from Highmark and Aetna will be present at each session. Consumers and interested parties may also submit written comments to the Department at ratedivision@delaware.gov for 30 days between June 15 and July 15, 2015.

According to Title 18 of the Delaware Code, insurance companies may not charge rates that are “excessive, inadequate or unfairly discriminatory.” The staff at DOI reviews rate filings and independent actuaries retained by DOI review the supporting data to see if the rate changes are justified by the circumstances as presented by the insurance companies. The rate requests and the insurers’ justifications will be posted at www.delawareinsurance.gov during the 30-day comment period. The Commissioner reviews the actuaries’ findings and the public comment and works with the insurers to arrive at a rate.  That rate is submitted to the Centers for Medicare & Medicaid Services (CMS) for subsequent review. CMS must follow its own regulations and Delaware law before finally approving or denying the requests.

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For immediate release
Contact Jerry Grant 302-674-7303

Businesses Can Continue To Purchase Large Group Health Insurance Plans

 Aetna and Highmark Will Offer Transitional Renewal Opportunity

(DOVER, DE) –Insurance Commissioner Karen Weldin Stewart announced today that Aetna Health, Inc. and Highmark BlueCross BlueShield Delaware will offer businesses employing 51 to 100 workers the opportunity to renew their group health insurance policies at “large group” rates for policy plan years beginning on or before October 1, 2016.  Commissioner Stewart issued a departmental bulletin earlier this year notifying issuers in the large group market about the opportunity provided by the Affordable Care Act.

“The large group renewal offer is welcome news for Delaware businesses of this size who currently purchase insurance in the large group market,” said Stewart. “Beginning January 1, 2016, the ACA will redefine these companies as small businesses, who would then have to shop for a plan in the small group market.  Because of the accommodation I am announcing today, these companies can continue to purchase health coverage from Aetna and Highmark at large group rates until October 1, 2016. The large group market generally offers lower rates.”

For more information, please visit the DOI’s Bulletins page, or go to http://tinyurl.com/kp794gt. See bulletin No. 75, under the “Domestic/Foreign Insurers Bulletins” category.

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For Immediate Release | Contact: Jerry Grant | (302) 674-7303

Delaware Department of Insurance | www.delawareinsurance.gov | 302.674.7300

More news from the Department of Insurance: http://www.delawareinsurance.gov/newsroom.shtml