Commissioner Stewart: DOI Also Saved Businesses $9M in Workers Comp Costs 

​Dover, DE – Last year the Delaware Department of Insurance recovered more than $1.9 million for policyholders, and helped business owners save nearly $9.3 million in workers’ compensation insurance costs. DOI also collected over $105 million through fees, fines and insurance premium taxes during FY2015, and distributed most of those dollars to Delaware fire companies and ambulance services, the police pension fund, and the state’s general fund.

These figures were among the highlights of the presentation made to the General Assembly’s Joint Finance Committee on February 16 by Insurance Commissioner Karen Weldin Stewart and her staff.  “Consumers are always our primary focus at the Department,” said Commissioner Stewart. “My staff wants Delawareans to know their rights when dealing with insurance companies. I am really proud that we were able to intervene on behalf of consumers and recover this much money for policyholders.”

DOI’s appearance at Legislative Hall differs from most state agencies’ presentations to the JFC. Instead of asking the legislature for financial support, the Insurance Department covers its own operating costs with a portion of revenue obtained through insurance premium taxes and other fees and fines. Pursuant to state law, DOI then makes contributions through the State Treasurer’s office to various state and local accounts. During fiscal 2015, the Department provided $38.4 million of the tax revenue to Delaware’s volunteer fire companies, the City of Wilmington fireman’s pension fund, ambulance service providers throughout the State, and the police pension fund. In addition, $3.8 million was transferred to the workers’ compensation assistance fund and $1 million went to the reserve fund for victims of insurance fraud.  The remaining $62.3 million was deposited into the general fund for use as the State deems appropriate.

The Department returned over $1.9 to consumers in two ways. DOI advocated for policyholders during disputes with insurance companies and recovered nearly $1.1 for individuals last year (handling 4,450 formal complaints and inquiries). In addition, the Department facilitated arbitration hearings on behalf of consumers which led to awards totaling $816,384.

DOI also succeeded in saving money for Delaware businesses through its Workplace Safety Program, which allows employers to earn discounts of up to 19 percent on their workers’ compensation insurance premiums if they meet certain safety requirements by undergoing voluntary inspections. The 1,481 businesses enrolled in the program in 2015 saved in excess of $9 million, according to Delaware Compensation Ratings Bureau estimates. The DOI continues to work with employers and insurers to promote the benefits of the program.

The Department of Insurance is also home to the Delaware Medicare Assistance Bureau (DMAB), formerly known as ELDERinfo. DMAB staff assists Medicare recipients with questions related to Medicare, Medigap (Medicare supplement) insurance, Medicare Part D (prescription medication plans), Medicare Advantage plans, and other financial assistance programs. DMAB assisted more than 7,000 beneficiaries through telephone calls, face-to-face meetings, and e-mail and helped saved beneficiaries nearly $840,000 in 2015.

If you need help with insurance matters, call the Department at (302) 674-7300, or (800) 282-8611 for Consumer Services. For more information on the Workplace Safety Program, call 302-674-7377. Visit our website www.delawareinsurance.gov  for more resources and links.

###

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

Commissioner Stewart Lauds Captive Bureau’s Performance

DOVER, DE –Insurance Commissioner Karen Weldin Stewart today announced another record year of captive insurance formations in Delaware.  In 2015, Delaware licensed 74 pure captive insurers, 3 special purpose captive insurers, and 112 series captive insurers, for a total of 189 captive entities.  “The growth of Delaware’s captive insurance program reflects the fact that Delaware is a business-friendly environment that applies a firm but fair method of regulation,” said Stewart.

As of December 31, 2015, the number of active captive insurers of all types in Delaware is 1,060.  That total consists of 242 pure captive insurers, 740 series captive insurers, 45 special purpose captive insurers, 5 special purpose financial captive insurers, 1 agency captive insurer, 2 industrial insured captive insurers, 2 association captive insurers, and 3 sponsored captive insurers.  When Commissioner Stewart formed the captive bureau in July 2009, Delaware had only licensed 38 captive insurers.  Delaware’s first captive insurance company was licensed in the 1980s and since then the First State has issued 1,279 captive insurance company certificates of authority.

“I continue to be pleased with the growth of the captive insurance program.  This program continues to provide economic opportunities for my constituents and much-needed revenue for the state” said Stewart.

In 2015, Delaware amended its captive insurance laws to codify the licensing of series, which included creation of a new type of captive insurer – a series captive insurance company. This change in the law has resulted in a significant increase in the total number of captive insurance companies in Delaware.

Delaware pioneered the licensing of series as captive insurers in 2010.  Series are sometimes incorrectly confused with protected cells.  The difference between a protected cell and a series is that a protected cell is typically a financial account instead of a business organization and, as a creation of a state’s captive insurance laws, lacks the features of a separate legal person.  In contrast, a series is the creation of Delaware’s business organization laws and has many features of a separate legal person.  Series are primarily formed pursuant to the Delaware Limited Liability Company Act.  Unless the governing document provides otherwise, a series of a Delaware limited liability company has the power and capacity, in its own name, to contract, hold title to assets, including real, personal, and intangible property, grant liens and security interests, and sue and be sued.  Because a series is a form of business organization, Delaware law now provides it the opportunity to obtain its own certificate of authority as a captive insurance company.  For example, a series can be licensed in Delaware as a series captive insurance company or as any other type of captive insurance company including a special purpose captive insurance company.  Stewart added, “When I pioneered the use of the series as a captive insurer, I did so with the goal of maximizing flexibility in the use of Delaware business organizations as risk bearing and transfer vehicles.  I am delighted that the captive insurance industry has so readily accepted the series as a captive insurance company.”

Captive insurance companies are owned by the entities that they insure, and are formed by businesses who wish to better manage the cost and administration of their own risk. Today Delaware is the world’s sixth largest and the country’s third largest captive domicile.  Delaware’s sophisticated corporate laws, financial infrastructure and respected judiciary make it the preeminent jurisdiction for business. These benefits are extended to captive insurance companies through Delaware’s Bureau of Captive and Financial Insurance Products.

###

DOVER, DE – As the first major snowstorm of the year approaches Delaware, Insurance Commissioner Karen Weldin Stewart and the National Association of Insurance Commissioners (NAIC) remind you to take a moment to review your insurance policies before you go dashing through the snow. Winter weather comes along with its own particular risks.

Home
Your homeowners or renter’s policy can protect you against common winter mishaps. If someone slips and falls on your icy driveway, your homeowners policy will pay for some medical expenses, but ask your insurance provider if you have adequate liability limits.

A standard homeowners policy will also provide coverage, subject to your deductible, if your home suffers damage during a winter storm or a house fire, subject to your deductible. Some policies offer additional living expenses if you are unable to live in your home during repairs. Check with your insurance provider to determine what your policy covers.

Getting snowed in is a great time to create or update your home inventory. This will help you make sure your homeowners or renter’s policy provides enough coverage for your belongings, as you may need a separate rider for high-cost items like jewelry, art or electronics. The NAIC’s free smartphone app, myHOME Scr.APP.book, makes the process of creating a home inventory quick and easy. You can download the app on iTunes and Google Play, or you can download a PDF version. Include as much information about your items as you can, such as receipts, photos and serial numbers.

Auto
Winter weather can be a challenge for all drivers, so check your auto policy to confirm it’s appropriate for your needs. A new luxury vehicle will require a different level of coverage than an older car. You should also check your liability limits to make sure you have adequate protection against injury or damage if you cause an accident.

Be sure you know what to do if you get in a wreck. Always keep a copy of your insurance card and your insurance provider’s contact information in the car. To take the stress out of filing a claim after an accident, the NAIC created WRECKCHECK, a free smartphone app that walks you through the process of gathering information following an accident. You can then email the report directly to your insurance agent. WRECKCHECK is available on iOS and Android devices. There is also a PDF version available for download.

Winter Fun
Before you hit the slopes or take out the snowmobile, check your homeowners or renter’s policy. Generally, ski equipment that you own will be covered by your homeowners or renter’s policy. On the other hand, snowmobiles are not covered by homeowners, renter’s or auto policies. Ask your insurance agent if you need more coverage on your sporting equipment or need to purchase a separate snowmobile policy.

Some Delawareans survive the chill of winter by making a warm weather escape. Regardless of where you’re going, winter travel can be uncertain. Delays or cancellations are inevitable. You may want to consider travel insurance, which can cover everything from lost luggage to delays and cancellations.
If you have questions about your insurance options or insurance coverage, call 1-800-282-8611 or contact http://www.delawareinsurance.gov/departments/consumer/consumerhp.shtml

###

 ​DOVER, DE – Insurance Commissioner Karen Weldin Stewart today announced she has fined Highmark Blue Cross Blue Shield Delaware $383,000 for numerous violations, including failure to pay policyholder claims in a timely fashion.

Commissioner Stewart has also fined Aetna, Inc. $100,000 for failing to pay policyholder claims in a timely fashion and for charging excessive copays, among other violations.

The fines resulted from routine market conduct examinations of each insurer performed by Insurance Department examiners.

A copy of the Stipulation and Consent Order and the Market Conduct Exam Report for each matter may be found at

http://delawareinsurance.gov/

###

Commissioner Stewart Urges People without Coverage to Enroll Now

​Dover, DE – The open enrollment period for obtaining health insurance through Delaware’s Health Insurance Marketplace ends on January 31. If you want health insurance coverage to begin on February 1, you’ll need to enroll in a plan by January 15. If you enroll in a plan between January 16 and January 31, your health insurance will not take effect until March 1, 2016.

Insurance Commissioner Karen Weldin Stewart reminds Delawareans who think they can’t afford health insurance that eight out of ten people who enrolled in Delaware received help paying for their insurance. Find out if you qualify for financial assistance now by going to www.healthcare.gov.

If you don’t have health insurance coverage in 2016 you’ll risk having to pay a federal fee at tax time. You’ll pay a penalty of either 2.5% of your income, or $695 per adult ($347.50 per child) — whichever is higher. You pay the fee when you file your federal tax return for the year you don’t have coverage.

After January 31, 2016, you can’t buy a health insurance plan for the rest of 2016 unless you have a specific life change — like having a baby, getting married, or losing other health coverage — that qualifies you for a Special Enrollment Period.

Are you ready to enroll? Consumers can find more details about the various plans and their related premiums and deductibles, as well as any potential premium subsidies they may be eligible for, at www.healthcare.gov. If you need additional help choosing a plan, there are free and local assistance available across the state to help answer your questions. They can also assist you with the enrollment process – find their contact information at www.choosehealthde.com.

Commissioner Stewart also reminds you that scam artists are active as enrollment deadlines approach, so be cautious if you purchase a health plan through a site other than www.choosehealthde.com or www.healthcare.gov. Other websites may offer plans that don’t contain the coverage benefits available through the Affordable Care Act.

Don’t forget, small businesses can apply for SHOP coverage for their employees any time, all year. Go to https://www.healthcare.gov/small-businesses/employers/

###