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.”

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 – The Federal Aviation Administration estimates more than one million drones will be sold during the upcoming holiday season. Everyone from photographers and farmers to law enforcement and hobbyists are taking to the air. As drones become more affordable and available, the skies are getting crowded. Insurance Commissioner Karen Weldin Stewart and the National Association of Insurance Commissioners advise that personal or commercial use of drones raises a number of critical insurance issues, ranging from personal injury and property damage to privacy concerns.

 

Drones are defined as remotely piloted aircraft systems and are also known as unmanned air vehicles (UAVs). According to the Federal Aviation Administration (FAA), pilots of unmanned aircrafts have the same responsibility to fly safely as manned aircraft pilots. Earlier this week, the FAA announced that drone owners must register their UAVs beginning December 21 and pay a $5 fee. States and municipalities may have their own laws regarding drone use. Before you take flight, first check local, state and federal laws. A link to the FAA release can be found below.

 

 

Drone Safety

 

Hobbyists have been flying model aircraft for decades. However, advances in technology allow drones to hover quietly and fly far from their pilot. According to the FAA, there will be 30,000 small unmanned UAVs used for business purposes by 2020. This number does not include drones used by hobbyists.

 

With some drones weighing up to 55 pounds, a fall from the sky can cause significant damage to property or bystanders. The FAA has issued these guidelines for drone hobbyists:

 

  *   Don’t fly higher than 400 feet and stay clear of surrounding obstacles.

  *   Keep the aircraft in sight at all times.

  *   Stay away from manned aircraft operations.

  *   Don’t fly within five miles of an airport unless you contact the airport and control tower before flying.

  *   Avoid flying near people or stadiums.

  *   Don’t fly an aircraft that weighs more than 55 pounds.

  *   Use caution when flying your unmanned aircraft.

 

 

Insurance for Private Use

 

Since UAVs are operated remotely, there’s no risk to passengers or crew. However, drones present a significant risk to property and life on the ground in the event of an accident. Drones can crash due to faulty and inappropriate operation, mechanical defects and component failure. Losses and damages could involve bodily injury to humans and animals as well as buildings and other structures.

 

Obtaining insurance for your drone for personal use isn’t difficult. Using a private drone as a hobby is generally covered under a homeowner’s insurance policy (subject to a deductible) which typically covers radio-controlled model aircraft. This also applies to a renter’s insurance policy. Look at the contents section of your policy, or talk to your agent to see if your drone will be covered if it is lost, stolen or damaged. If your drone falls onto your car, damage to your car may be covered if you have a comprehensive coverage auto policy.

 

A larger concern is liability for an accident caused by your UAV. If your drone crashes into a person or someone else’s vehicle, the accident is your responsibility. If you have a homeowners or renter’s policy, generally the policy will cover liability for an accident caused by your drone. Check with your agent or insurer to verify your policy contains this important coverage.

 

Privacy Concerns

 

You may be excited to obtain a drone for your own use, but how would you feel about your neighbors owning and operating drones near your home? Privacy is a legitimate concern when it comes to drone use.

 

UAVs are often equipped with on-board cameras and other data-collection capabilities which can pose a threat to privacy. Drones may capture private data that could be harmful or embarrassing if shared. Beyond intentional surveillance, drones may also unintentionally capture images during routine and unrelated flights. As a drone owner, remain mindful of privacy concerns. Insurers are developing policies to cover these liability exposures, so keep in touch with your insurer to make sure your use remains covered.

 

Commercial Drone Use

 

Currently, the commercial use of UAVs is largely restricted and operations are authorized on a case by case basis. The FAA has started regulating commercial drones with proposed rules such as requiring pilots to obtain special pilot certificates, keeping drones away from bystanders, and restricting when and where they can fly. The proposed rules also prohibit drone delivery of packages. Since final rules have not been implemented, they are not being enforced.

 

Future of Drone Insurance

 

Widespread use of drones—private and commercial—poses various risks, ranging from safety to privacy of individuals. Risks arising from the use of drones could best be managed by property and casualty insurers, but only after defined drone operational requirements and performance standards are in place. Complete and clear drone regulation, by the states and the FAA, is necessary before insurers can meet policyholder needs.

 

Registration of drones will allow authorities to trace a drone back to an owner, which means it’s vital that you’re in compliance with laws and regulations and have the appropriate insurance coverage.

 

The FAA press release, which contains important information on deadlines, fees and the benefits of early registration, can be found at

 https://www.faa.gov/news/press_releases/news_story.cfm?newsId=19856

 

###

Contact:  Jerry Grant

(302) 674-7303

Insurance Department Announces Workers’ Compensation Rates for 2016

DOVER, DE  – Insurance Commissioner Karen Weldin Stewart today approved the Delaware Compensation Rating Bureau (DCRB)’s workers’ compensation amended rate filing, resulting in an overall average increase of 7.09% in residual market rates and 7.20% in voluntary market loss costs.

The DCRB originally proposed overall increases of 14.92% for the residual market plan and 15.03% for the voluntary market loss costs. The Commissioner’s independent actuaries and the state’s Ratepayer Advocate each examined DCRB’s filing and recommended increases lower than the ones requested by DCRB. Following extensive discussions, the three parties proposed the amended rates which the Commissioner approved today.

The DCRB’s amended filing No. 1502 may be found at

http://www.delawareinsurance.gov/departments/safety/dcrb.shtml

###

Governor Markell Recognizes DOI’s Licensing of 1000^th Captive Insurance Company

Commissioner Karen Weldin Stewart Achieves a Long-Time Goal

DOVER, DE – Governor Jack Markell presented Insurance Commissioner Karen Weldin Stewart with a proclamation today recognizing the Department of Insurance’s licensing of its 1,000 captive insurance company, AWI, Inc. of Voorhees, New Jersey.

 

The proclamation recognizes Delaware as one of the foremost captive domiciles in the world, currently the sixth largest globally and the third largest nationwide. DOI’s captive bureau is self-sustaining and currently contributes an annual surplus of tax and fee revenue of over $3 million to the Delaware general fund. Captive insurance entities are owned by the companies that they insure, and are generally formed by businesses who wish to better manage the cost and administration of their insurance coverage.

 

“When I took office in 2009, Delaware was home to only 38 captive insurance companies, I immediately saw the revenue potential for growing our captive insurance business,” said Commissioner Stewart. “I promptly formed the Bureau of Captive and Financial Insurance Products. Since then the bureau has generated more than $11 million in revenue.”

 

“I want to thank the Governor and the General Assembly for their continued cooperation in making Delaware a friendly place for corporations around the country and the world to do business,” said Stewart. “Of course Delaware’s unique Court of Chancery also deserves credit for establishing a stable and reliable legal environment in which captives can thrive.”

 

“In the future, I intend to reach out around the world to new markets for captive insurance and continue to increase the number of captive insurance entities domiciled in Delaware.”

 

AWI‘s parent company, American Water, was founded in 1886 and is the largest and most geographically diverse publicly traded water and wastewater utility company in the United States.

 

AWI will receive formal recognition as Delaware’s 1000^th captive at the Delaware Captive Insurance Association Fall Forum on November 12 at the Chase Center on the Riverfront in Wilmington.

 

 

Seated: Governor Markell.

Front Row: Deputy Insurance Commissioner Hardy Drane; Assistant Secretary of State Rick Geisenberger; Insurance Commissioner Karen Weldin Stewart; Senior Captive Analyst Rasa Zubielaite.

Back Row: Captive Director Assistant Mark Murowany; DOI Chief of Staff Paul Reynolds; Captive Bureau Director Steve Kinion; DOI Director of Communications Jerry Grant; Captive Office Manager Jamie Bafundo; Insurance Examiner Raciel Moratin.

###

More information at http://captive.delawareinsurance.gov/

For more information:  Jerry Grant 302-674-7303

For more photos, go to https://www.flickr.com/photos/delawaregovernor/sets/72157660237905428