DOVER, DE – Influential trade publication Captive Review magazine has named Insurance Commissioner Karen Weldin Stewart to its first Enterprise Risk Captive Pioneers list, recognizing 20 of the “key influencers” in the United States’ smaller captive industry.

Captive Review said “Commissioner Stewart has been the driving force behind Delaware’s rapidly growing captive industry and has taken a strong interest in the facilitation of captives for small and medium-sized businesses.” These captive entities, known as Enterprise Risk Captives (ERCs), have played a significant role in Delaware’s captive growth. In July 2009, when Commissioner formed the Bureau of Captive and Financial Insurance Products, Delaware only had 38 captive insurers. In a little more than five years, Delaware became one of world’s preeminent captive insurance domiciles, in large part by providing ERCs a captive insurance domicile that has knowledgeable regulators and laws that encourage the formation of captive insurers.

“I’m honored to be included on this list of small captive insurance industry trailblazers,” said Commissioner Stewart. “When I first became Commissioner, I was determined to grow our captive program. Of course, my hard-working captive division staff has really gotten down in the trenches and worked with our ERCs to make sure they make use of all the advantages Delaware’s favorable business climate provides. And my captive director Steve Kinion especially has become a respected champion for small market captives.”

Captive insurance companies are owned by the entities they insure, and are formed by businesses who wish to manage more efficiently the cost and administration of their own risk. Delaware updated its laws regarding the formation of captives in 2005, and consequently became a preferred domicile for the growing number of captive insurance companies being created by companies worldwide.  Today Delaware is the world’s sixth largest and the third largest U.S. 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

For more information, please visit captive.delawareinsurance.gov

The Captive Review article is here: captivereview.com/news/revealed-the-2015-captive-review-erc-pioneers

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DOVER, DE – Delaware Insurance Commissioner Karen Weldin Stewart announced today that former insurance company executive Jeffrey B. Cohen, was sentenced to 37 years in federal prison and required to pay $137 million in restitution by U.S. District Court Judge William D. Quarles, Jr. in Baltimore, Maryland today.  Cohen had perpetrated multiple frauds upon policyholders of an insurance company controlled by him, and later threatened and planned to harm Delaware Insurance Department representatives and a Delaware Chancery Court judge.  The threats and plans to do violence were apparently in retaliation for the Commissioner’s shuttering of his insolvent insurance empire. Cohen had pleaded guilty in June to charges of fraud, aggravated identity theft, obstruction of justice and making false statements to Delaware insurance regulators.  His surprise guilty plea came after only 4 days of testimony in what was planned to be a month long trial.

Cohen owned and operated over a dozen companies, one of which, Indemnity Insurance Company RRG, became subject to Commissioner Stewart’s oversight after it re-domesticated to Delaware in November 2010.  Cohen’s empire began to unravel when the Delaware Insurance Department began examining Indemnity to confirm its financial fitness.  While that examination was ongoing a Department analyst became suspicious that a bank confirmation provided in a quarterly financial filing was fraudulent.  Soon afterward, the Delaware Chancery Court granted Commissioner Stewart’s request for an order to seize Indemnity to protect its policyholders from further loss.  Continued investigation by Commissioner Stewart’s team confirmed that the bank confirmation was bogus.  Other financial frauds were uncovered, including Cohen’s submission of additional false information to the Department, policyholders, other states’ regulators, and insurance rating agencies.  The Delaware Chancery Court agreed with the Department that Indemnity was insolvent and placed it into liquidation on April 10, 2014.  The liquidation order followed multiple legal challenges by Cohen and his entities which were rejected by the Delaware Chancery Court and ultimately the Delaware Supreme Court.  Cohen had also brought several lawsuits in the state and federal courts in Maryland in an effort to derail the Commissioner’s investigation.  The federal criminal charges arose from the investigation by the Commissioner’s representatives, and those charges were supplemented to include the discovery of weapons, bomb making materials, disguises and attack plans uncovered when federal law enforcement agents raided Cohen’s house to arrest him for the financial frauds.

Commissioner Stewart stated: “This type of criminal conduct is horribly sad. Cohen’s illegal acts caused terrible losses to innocent claimants and policyholders.  However, I am very proud that my Department acted so quickly and aggressively to uncover his misdeeds.  We took immediate action to minimize the loss to future policyholders and claimants. I hope this case sends a clear message that my Department will vigorously pursue any and all attempts to defraud the public.”

For more information, call 302-577-5259.

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Important Deadline Approaching April 30; Beware of Scams

​Dover, DE –The open enrollment period for the Health Insurance Marketplace, www.healthcare.gov, ended on February 15; however, some people may qualify for a special enrollment period (SEP) going on right now. If you owe a fee with your taxes for not having qualifying health coverage in 2014, and you don’t yet have health insurance for 2015, you may still be able to get coverage for this year. Time to apply is limited; this special enrollment period ends on April 30.

“If you don’t have health insurance in 2015 you’ll risk having to pay the fee again next year,” said Insurance Commissioner Karen Weldin Stewart. The fee for people who don’t have coverage increases in 2015 to $325 per person or 2% of your household income – whichever is higher. Eighty percent of people who apply for financial assistance received some level of support to help pay for monthly premiums.

If you owe the fee for not having qualifying coverage in 2014, you may still be eligible to enroll in 2015 coverage if all of these apply:

• You didn’t know until after open enrollment ended on February 15, 2015 that the health care law required you and your household to have health coverage, or you didn’t understand how the requirement would impact you and your household;
• You owe the fee for not having coverage in 2014; and
• You aren’t already enrolled in 2015 coverage through the Health Insurance Marketplace or outside the Marketplace.

Healthcare.gov states that, “You don’t need to have filed your 2014 taxes before enrolling with this SEP—you just have to owe the fee.” The website further states, “If any person in a household meets the criteria for this SEP, everyone in the household can enroll with it.” Please note: Even if you get 2015 coverage through the SEP, you still owe the fee for 2014.

Other special enrollment periods are available throughout the year if you experience certain life changes, such as having a baby, getting married, or losing your existing health coverage. To see if you qualify, please visit www.choosehealthde.com or www.healthcare.gov.

Small businesses can apply for Small Business Health Options Program (SHOP) coverage for their employees any time, all year long.

Fraud, scams and harassment: If you try to obtain a health insurance policy outside of the open enrollment period which complies with the Affordable Care Act, you will probably find very few options. Nevertheless, within the past week the Department of Insurance’s Consumer Services division has received several complaints about harassing phone calls from callers trying to sell limited benefit plans to consumers, sometimes insinuating that the callers’ plans qualify as full health insurance coverage. It most likely does not comply.

There have also been recent reports of scammers calling and impersonating IRS agents, telling people that they need to pay fines or enroll in a plan immediately. Remember, the IRS does not generally conduct business via telephone and you should never give out personal information to anyone if you are suspicious of the call or feel pressured to “act immediately”. Never provide your social security number or credit card number to anyone who demands it.

If you are contacted by an agent who is selling a legitimate insurance product, he or she is required by law to provide you with the name of the insurance company that the agent is representing, and the agent’s ID number. If you request that information, and the alleged agent will not provide it, then the call is almost certainly a scam. Before you purchase any benefit plan or insurance policy, you are encouraged to call the Delaware DOI Consumer Services division at 1-800-282-8611 to verify that the agent is licensed to sell insurance policies in Delaware. For more information about health insurance topics please visit www.delawareinsurance.gov.

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Contact:  Jerry Grant

(302) 674-7303

Commissioner Stewart Also Reports $94.6 Million Collected in Premium Taxes in Fiscal 2014

​Dover, DE – The Delaware Department of Insurance recovered more than $2.1 million for policyholders in calendar year 2014, and helped business owners save nearly $9.3 million in workers’ compensation insurance costs. DOI also collected over $94.6 million dollars through fees, fines and insurance premium taxes during fiscal year 2014, distributing most of those dollars to fire companies and ambulance services, the police pension fund, and the state’s general fund.

These numbers are highlights of the presentation made to the General Assembly’s Joint Finance Committee last month by Insurance Commissioner Karen Weldin Stewart and her staff.  “I would especially like to thank the staff members here at the DOI who assist consumers with their insurance-related inquiries all year long. Their expertise helps resolve numerous questions and concerns from policyholders, often helping to correct smaller problems before they become bigger complications. The Department’s staff and employees work throughout the year to fulfill our mission of protecting Delawareans by educating consumers about their rights and responsibilities.”

DOI’s annual appearance at Legislative Hall differs from most state agencies’ presentations to the JFC. Instead of relying on the state 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 2014, the Department provided $35.1 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. More than $3.6 million was transferred to the workers’ compensation assistance fund, and $1 million went to the reserve fund for victims of insurance fraud.  The remaining $54.9 million was deposited into the general fund, for use as the State deems appropriate.

In addition to premium taxes, the Department generates revenue by advocating for consumers during disputes with insurance companies. DOI’s Consumer Services Division recovered $1,259,634.92 for individual Delaware consumers last year while handling 5,610 formal complaints and inquiries. Moreover, the Department facilitated arbitration hearings requested by, or on behalf of, consumers which led to awards totaling $843,035.00.

The Department of Insurance 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 by meeting certain safety requirements and undergoing voluntary inspections. The 1,496 businesses enrolled in the program in 2014 saved $9,296,878.00, 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. In 2014, DMAB serviced over 6,535 beneficiaries through telephone calls, face-to-face meetings, and e-mail. DMAB’s partnership with the Division of Medicaid & Medical Assistance helped saved beneficiaries $609,000.00 in 2014.

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.

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

For Immediate Release

Contact:  Jerry Grant

(302) 674-7303

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

Delaware Reports Another Record Year for Captive Growth

The World’s Sixth Largest, and the Third Largest U.S. Domicile, Continues its Leadership Role

DOVER, DE (February 12, 2015) – Insurance Commissioner Karen Weldin Stewart announced today that the captive insurance bureau she formed shortly after taking office in 2009 continues to exceed expectations.  “I am very pleased that the captive program continues to grow.  This program provides economic opportunities for my constituents and much needed revenue for the state.”

The Commissioner’s captive bureau reported that in 2014 it licensed 87 captive insurers and 141 series business units.  Since inception, the captive program has licensed 385 captive insurers, 753 series business units, and 13 cells.  Today the program boasts 333 active captive insurers, 688 active series business units, and 12 active cells.

Commissioner Stewart added, “I am gratified by our continued success and I look forward to expanding our program even more in 2015.”

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.

To learn more about Delaware’s captive insurance bureau please visit http://captive.delawareinsurance.gov/

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