Department of Insurance Recovers $2.1 Million for Insurance Policyholders in 2014, Helps Save Businesses $9.2 Million

 

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

 


Commissioner Karen Weldin Stewart Announces Over $900,000 Dollars Recovered for Delaware Policyholders and $5,900,000 Dollars Saved by Employers in 2013

DOVER – Insurance Commissioner Stewart and the Delaware Department of Insurance report that $940,995.72 has been recovered for consumers in the first half of 2013. The Consumer Services Division has recovered $446,697.72 for Delaware policyholders and handled 2,291 formal complaints and inquiries which is an increase from 2,027 complaints and inquiries during the first six months of 2012. The breakdown of funds recovered during this period is:

•           Consumer Services – $446,697.72

•           Market Conduct Examinations and Investigations – $50,511

•           Arbitration Hearings – $443,787

Health insurance continues to generate the most consumer complaints, followed by auto and homeowners insurance. Denial of claims and claim delays continue to rank highest in the type of complaints received by the Consumer Services Division at the Department of Insurance.

The Department’s Market Conduct Division has returned $50,511 back to consumers as a result of exams and investigations in the first half of this year. Arbitration actions also resulted in over $400,000 recovered for Delaware consumers as a result of hearings requested by or on the behalf of the consumer and facilitated by the Department of Insurance.

During the first six months of 2013, the Delaware Department of Insurance was extremely successful in saving money for Delaware businesses. The Workplace Safety Program is a Department of Insurance incentive program designed to help employers with exposure in Delaware to establish and maintain safe workplaces. The program also provides businesses with the opportunity to earn discounts on their workers’ compensation insurance premiums by undergoing safety inspections.

Our accomplishments thus far in 2013 include 1016 businesses enrolled in the workplace safety program and, their collective savings total $5,939,098.00 on their workers’ compensation insurance premiums.  We continue to work daily with employers and insurance agents to communicate the benefits of participation to those who are eligible for the first time and to retain previous participants. For more information on the workplace safety program please contact our office at (302) 674-7378.

Commissioner Stewart stated, “In 2012, the Department of Insurance was able to recover $1.4 million dollars for Delaware consumers. Last year’s recovery numbers combined with this year’s numbers demonstrate our commitment to assisting all Delawareans. We urge consumers to contact our office to gain a better understanding of the claims process and their policies.” For help with all insurance matters, call our office at (302) 674-7300 or (302) 674-7310 for Consumer Services. Also, visit our website www.delawareinsurance.gov, and follow the Department on Facebook at: www.facebook.com/DelawareInsurance.


Consumer Alert: Commissioner Karen Weldin Stewart Shares Useful Information in Preparation for an Active Hurricane Season

Hurricane season is less than a month away. According to Commissioner Karen Weldin Stewart, now is the time to prepare. The Weather Channel released its first 2013 Atlantic hurricane season outlook, calling for another active season. Last year, there were nineteen named storms, ten hurricanes and two major hurricanes, the most destructive of which was Super Storm Sandy which swept through the East Coast of the United States in late October. Many property owners do not know the basics about flooding or flood insurance. To make informed decisions, residents and business owners need a solid understanding of their flood risk and how flood insurance can help. The following are important facts and figures gathered by the Federal Emergency Management Agency (FEMA) which may serve to be useful information to help reduce the financial impact of flooding:

  • Federal disaster assistance is usually provided in the form of a loan that must be paid back with interest along with any existing mortgage.
  • Flood losses in the United States averaged $2.9 billion per year for the last decade.
  • Nearly 75 percent of all federally declared disasters over the past five years involved flooding.
  • Floods are the number one natural disaster in the United States.
  • Everyone is at risk-even those that do not live close to rivers and lakes. Floods happen as a result of heavy rains, snow melt, overloaded drainage systems, land development runoff, and for many more reasons. Just an inch of water can cause tens of thousands of dollars in damage to your home and its contents.
  • Most homeowners insurance does not cover flood damage.
  • Over the life of a 30-year loan, your home, if located in a high-risk flood area, is more likely to be damaged by flood than by fire.
  • More than five million Americans are protected with flood insurance, but millions more are unaware of their personal risk for property damage-or options for reducing that risk.
  • Property owners, renters, and business owners can purchase flood insurance on their building and contents if their community is among the more than 21,800 communities that participate in the National Flood Insurance Program (NFIP).
  • It typically takes 30 days after the purchase of flood insurance for the policy to take effect.
  • The average premium is around $640 a year; the average claim in the past five years was more than $35,000.
  • More than 20 percent of all flood claims come from areas mapped outside high-risk flood zones.
  • Qualifying properties in moderate- to low-risk areas are eligible for the low-cost Preferred Risk Policy with premiums as low as $129 a year for $20,000 in building and $8,000 in contents coverage.
  • Commissioner Karen Weldin Stewart would like all Delawareans to be safe and be informed. Commissioner Stewart expressed that, “Being prepared in case of a natural disaster can save lives, property and a lot of heartache. The planning that homeowners and business owners do can keep a natural disaster from becoming an insurance disaster.” For more on flood insurance and flood risk information, visit http://www.FloodSmart.gov/facts. Also, visit our website for information related to storm preparedness: http://www.delawareinsurance.gov/departments/consumer/StormPrepare.shtml


Insurance Matters – Department of Insurance Newsletter

Our newsletter is all about you, the Consumer. In the Spring 2013 issue, the Delaware Department of Insurance has information for everyone, from the youngest in the state to older Delawareans. Our Department will be at fairs, community meetings and other events in the upcoming months and we hope to see you as we travel the state and offer our services to the community.

Also, June is National Safety Month and we would like to share safety measures that can be performed in your homes and at your places of work.

In the “Ask the Commissioner” section, we share some emergency preparedness tips as hurricane season is quickly approaching.

We hope you enjoy our newsletter and find the articles to be helpful. The Department of Insurance is here to serve you because, “The Consumer Comes First!”

Visit our website to subscribe to this quarterly newsletter.


Commissioner Stewart Asks Delawareans to Make Their Holiday Season a Secure Season

Dover – Delaware Insurance Commissioner Karen Weldin Stewart alerted Delaware’s consumers today of how best to stay safe, secure and insured on the roads of Delaware and the surrounding states. The Commissioner said, “In the early months of 2010 Delaware and the region experienced record consecutive snowstorms that made both for a winter wonderland as well as extremely hazardous roads. Driving was both difficult and dangerous. To insure that this winter is a celebration and not a calamity, there are a number of things, listed below; we can all do to safeguard our families and ourselves.”

The Commissioner continued, “Please do not hesitate to contact the Department of Insurance if you need assistance, have a complaint or a question. By doing so you help us help you. Our number is 1-800-282-8611 toll-free in Delaware or (302) 674-7310.”

The Commissioner encouraged Delawareans to do the following:

Your Car

  1. Winterize your car by getting regular tune-ups and oil changes.
  2. Maintain visibility and see if your wipers need replacing.
  3. Maintain your car’s hoses and belts and check for worn spots, cracks or shredding fabric reinforcement.
  4. Check all vital fluids including the engine, coolant, transmission, brakes, power steering and windshield washers.
  5. Use the right oil by checking your manual for the manufacturer’s recommendation.
  6. Check your tires for worn treads and consider winter tires.
  7. Pack an emergency kit if you plan on traveling that includes a flashlight, flares or reflective triangle, a distress sign, first aid supplies, basic tools, blankets, water, a fully charged cell phone and if you have roadside assistance, the number stored in a safe place.

Your Insurance

  1. Check your auto insurance to make certain it is active, premiums are up to date and your insurance card is in your car.
  2. Select liability limits consistent to your financial circumstances so your assets are not at risk.
  3. Check your homeowners or renters policy to see if you are covered for theft. A car full of gifts is a target.
  4. Check your auto policy to see if it includes roadside assistance covering towing, fuel delivery, lockout service, jump starts etc.
  5. Check your policy to see if it includes coverage for renting a car and verify your coverage limits with your agent and make sure you are not duplicating any coverage from your home, health and auto insurance policy.
  6. Check your homeowner’s policy to see if you have sufficient coverage to address property damage from winter storms, accidental fires, winter emergencies etc.
  7. Check with your insurance agent what additional protections called “endorsements” are and what endorsements are available to purchase.
  8. Clearly know what your policies do and do not cover including:
  • Damage caused by wind or wind driven rain
  • The collapse of a structure caused by the weight of ice
  • Frozen pipes due to extreme cold in which negligence, by not maintaining an appropriate temperature, is not a factor
  • Interior water damage
  • Water damage as a result of a flood or backed up drains and sewers
  • Acquaint yourself with the flood insurance offered by the National Flood Insurance Program provided by the federal government. (1-800-638-6620)
  • Removal of fallen trees 
  • Food spoilage due to a power outage

The Commissioner concluded by urging citizens to plan now for a potential future claim by making an inventory of all property with serial numbers and model names, saving all sales receipts, taking photographs, videotaping each room etc. She said, “By reviewing your insurance thoroughly beforehand and being attentive to these suggestions you can go a long way to helping you and yours have a happy holiday season.”