Dover, DE-Insurance Commissioner Karen Weldin Stewart was recently recognized at the annual conference of the Society of Financial Examiners (SOFE), held this year in Philadelphia, for her Department’s assistance with a major insurance fraud investigation that has led to extensive federal charges. Commissioner Stewart was presented with the Challenge Medal, an award bestowed by the Department of Homeland Security in special recognition of the work her forensic information technology team, INS Services, did in uncovering an elaborate web of bogus web sites, misleading internet addresses and diverted email accounts that were used to confirm assets thought to be held by insurance entities.

In fact, the “confirmed” financial accounts were non-existent. The web of deceit was not discovered by other state regulators, certified public accountants and rating agencies for several years before being exposed by Stewart’s examination and receivership teams. At the SOFE presentation, Commissioner Stewart received thanks in front of insurance financial examiners from across the United States for her leadership and resolute determination to expose insurance fraud.

Commissioner Stewart’s examination and forensic teams are in the process of recovering assets for payment to claimants and policyholders of the former Indemnity Insurance Corporation RRG, a company that insured restaurants, bars and night clubs. The Department’s discovery of the elaborate frauds has also led to a myriad of federal charges pending in Maryland against Jeffrey Cohen, Indemnity’s founder.

At the presentation, Commissioner Stewart gave praise to the diligence of Delaware’s examiners and analysts. “Insurance Companies choose Delaware as their preferred home for many reasons” said Stewart. “We strive to be the most professional and advanced regulatory environment, and companies that want to put forth new products and properly serve insurance customers are happy to be in Delaware. But we certainly are not easy to fool, and we will be relentless in uncovering fraud.” Stewart thanked her receivership team and all the examiners who work for Delaware for their talent, diligence and tenacity in performing financial examinations. “This is due to your great work,” Stewart told her team.

Commissioner Stewart has a special expertise in the rehabilitation and liquidation of troubled insurance companies. Prior to becoming Delaware’s insurance commissioner, Stewart worked as a receiver for several states in need of insolvency assistance and was a founder of the International Association of Insurance Receivers. She holds the designation “Certified Insurance Receiver – Multi Lines” (CIR-ML).

This is the second such company in the past few years where Stewart’s team has discovered fraud hidden by a complex scheme of interlocking companies and financial institutions. Commissioner Stewart’s Receivership team seized Security Pacific Insurance Company in 2012 after discovering that the company’s assets had been syphoned away. Detection was hidden from its auditors. Security Pacific had relocated to Delaware in 2007 with the certification of auditors that its assets were secure. Delaware’s insolvency department has a tradition and well-earned national reputation for working in cooperation with several branches of federal law enforcement to punish wide-ranging national and international fraud.

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Commissioner Karen Weldin Stewart, CIR-ML, at right, is pictured with Jerry Link, middle, and Terry Ryals, left, receiving the medal from the Department of Homeland Security. Link and Ryals were part of the IT forensic team that uncovered the fraud.

Dover, DE–Insurance Commissioner Karen Weldin Stewart and the Delaware Department of Insurance report that $1,407,464.40 has been recovered for consumers in the first six months of 2014. This number represents an increase of 49.57 percent in funds recovered for Delaware consumers compared to the same period last year. The Consumer Services Division has recovered $604,255.87 for Delaware policyholders and handled 2,700 formal complaints and inquiries. Of those 2700 cases that were opened, 2534 were closed by June 30, 2014. The breakdown of funds recovered during this period is:

• Consumer Services – $604,255.87
• Market Conduct Examinations and Investigations – $425,000.00
• Arbitration Hearings – $378,208.53

The department’s Market Conduct Division has returned $425,000 back to consumers as a result of exams and investigations in the first half of this year. Arbitration actions also resulted in $378,208 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 2014, the Delaware Department of Insurance was also successful in saving money for Delaware businesses through the Workplace Safety Program. 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 of up to 19 percent on their workers’ compensation insurance premiums by meeting certain safety requirements and undergoing inspections.

This year there are 1458 businesses enrolled in the Workplace Safety Program. The projected savings to date for calendar year 2014, according to the Delaware Compensation Ratings Bureau, is $4,702,896.00 on those businesses’ 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) 674-7377.

Commissioner Stewart stated, “These numbers show that the Department of Insurance is fulfilling its mission of ‘Protecting Delawareans’—1.4 million dollars in the first half of 2014 is certainly no small sum of money. This number represents an increase in recoveries for Delaware policyholders of about fifty percent compared to the first half of 2013. I would especially like to applaud the staff here at the Department of Insurance who work with the public to help them understand their rights, responsibilities and options as consumers. We are always working to increase the knowledge of our services to the public so that they know where to turn for free and unbiased assistance with their insurance questions.”

For help with all insurance matters, call our office at (302) 674-7300 or (800) 282-8611 for Consumer Services. Visit our website, www.delawareinsurance.gov, and “Like” the Department on Facebook at: www.facebook.com/DelawareInsurance. Follow us on Twitter @Delaware_DOI.

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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.”

Dover, DE–Insurance Commissioner Karen Weldin Stewart is alerting drivers in Delaware that as of June 25, 2014, Delaware law-enforcement officials will accept proof of auto insurance (insurance ID card) in physical or electronic format. House Bill 258 w/HA 1 states that law-enforcement will now accept electronic proof of insurance on “a cellular phone or any type of portable electronic device.” While this bill will make it easier for drivers in Delaware to prove that they have the proper insurance coverage, Commissioner Stewart recommends that drivers continue to keep a current physical copy of their insurance ID card in their vehicle at all times.

Commissioner Stewart noted, “I applaud the Delaware legislature and Governor Markell for passing and enacting this legislation that will now allow for electronic proof of auto insurance. Delaware is now the 37th state to allow this proof of insurance coverage. However, I suggest that all drivers still keep a physical copy of their current insurance ID card in their vehicle in case your cell phone [or other portable electronic device] has a dead battery or can’t get a signal when you need to show your proof of coverage. Additionally, not all of the states in the region accept electronic proof of auto insurance, including New Jersey, New York and West Virginia. You don’t want to be caught without the proper proof of insurance when traveling.”

If your insurance company offers an app for your smartphone or tablet it is probably helpful to download the app. An app can usually make accessing your insurance ID card much easier than logging in to a website which may or may not be ‘mobile-friendly’. Apps often don’t require you to log-in, whereas a website will usually require you to enter your username and password which you might forget if you don’t access that site often. Ultimately, consumers should do what works best for them.

Two additional items in the bill (HB 258) should also be noted: First, the bill states that “Presentation of proof of insurance in electronic format shall not constitute consent for law enforcement, justice of the peace, or other state officials to access other contents of the cellular phone or other portable electronic device, and shall not expand or restrict authority to conduct a search or investigation.”

Additionally, the bill states, “Law enforcement officers, justice of the peace, and other state officials shall not be liable for any damage to a cellular phone or portable electronic device resulting from its use to present satisfactory proof of motor vehicle liability insurance coverage.” Commissioner Stewart added, “I’m very pleased that the state legislature inserted language in to this bill to protect the privacy of consumers.”

To read the complete bill visit: http://www.legis.delaware.gov/, click on “Bill Tracking” and select “House Bill” and enter “258” in to the search field. HB 258 was passed by the Delaware State Legislature on May 15, 2014 and signed in to law by Governor Jack Markell on June 25, 2014.

For more information about automobile insurance visit www.delawareinsurance.gov or call the Delaware Department of Insurance Consumer Services Division at 1-800-282-8611.

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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.”

DOVER, DE-Insurance Commissioner Karen Weldin Stewart recommends that all Medicare recipients under age 65 in Delaware review their Medigap (Medicare supplement insurance) coverage options before the first deadline to purchase a policy occurs on June 30, 2014. With the passage of Senate Bill 42 (SB 42) in 2013 there are new Medigap options available to disabled Medicare recipients under 65 but time to purchase the plans is limited. SB 42 became effective on January 1, 2014, and requires insurance companies that offer Medigap policies to people 65 and older to also offer the same policies to anyone under the age of 65 who qualifies for Medicare due to a disability.

Commissioner Stewart noted, “Existing Medicare beneficiaries under the age of 65 who were receiving Medicare benefits prior to January 1, 2014, only have until June 30, 2014 to purchase a Medigap plan under SB42. Going forward, newly enrolled Medicare recipients under age 65 have six months to purchase one of these plans, from the time benefits begin. It’s very important that these individuals not wait until the last minute to compare plans or sign up, if they are interested. That’s why I encourage anyone with Medicare due to a disability under age 65 to call the Delaware Medicare Assistance Bureau at 1-800-336-9500 today to get more information before their time to act expires.”

The Delaware Medicare Assistance Bureau, DMAB, website, www.delawareinsurance.gov/DMAB, also has information about Medigap plans, including the 2014 Delaware Medicare Supplement Insurance Shopper’s Guide, which was released in late May.

As of September 2013, Delaware was home to 167,538 Medicare recipients which includes almost 28,000 individuals who are under the age of 65 and on Medicare due to disability.

What is Medigap (also known as ‘Medicare supplement insurance’)? According to Medicare.gov, “A Medicare supplement (Medigap) insurance, sold by private companies, can help pay some of the health care costs that Original Medicare doesn’t cover, like copayments, coinsurance, and deductibles.

Some Medigap policies also offer coverage for services that Original Medicare doesn’t cover, like medical care when you travel outside the U.S. If you have Original Medicare and you buy a Medigap policy, Medicare will pay its share of the Medicare-approved amount for covered health care costs. Then your Medigap policy pays its share.”

Lakia Turner, Director of the Delaware Medicare Assistance Bureau said, “DMAB is a free resource for Medicare recipients who have questions about Medigap plans, prescription drug coverage, Medicare Advantage, financial assistance programs and anything else related to Medicare. Our staff and volunteers are available to help over the phone or in-person at numerous locations throughout the state. We encourage disabled Medicare recipients to call DMAB today to get more information about Medigap policies before time runs out.”

The Delaware Medicare Assistance Bureau (DMAB) is Delaware’s State Health Insurance Assistance Program (SHIP) and is funded in part by a grant from the federal Administration for Community Living. DMAB accepts walk-ins only at their office in Dover from 8:30 am to 4:00 pm. The DMAB office is located at the Delaware Department of Insurance at 841 Silver Lake Blvd., Dover, DE 19904. Please call 1-800-336-9500 to get help over the phone or to make an appointment with a DMAB volunteer at a counseling site near you. Visit www.delawareinsurance.gov/DMAB for more info.

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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.”

DMAB Medigap SB 42 Poster

Atlantic Hurricane Season Started June 1: Prepare Now for Severe Weather
Dover, DE–Insurance Commissioner Karen Weldin Stewart wants Delaware residents to prepare for the potential damages and interruptions brought by strong summer storms and hurricanes; the Atlantic hurricane season started June 1. Doing the proper planning now can potentially help save time, money and frustration in the coming months should your home or personal property be negatively impacted by storms, floods or other natural disasters this summer or fall.

The Department of Insurance has a Storm Preparedness webpage filled with resources and information about what to do before, during and after a major storm. There’s an abundance of information about protecting your home or business from damage, and tips for preparing for meeting with an adjuster if your property sustains damages. Visit the Storm Preparedness webpage here: http://delawareinsurance.gov/departments/consumer/StormPrepare.shtml

Commissioner Stewart advises, “Now is a great time to update your personal property inventory for your home, or create one if you’ve never done it before. With today’s technology this process is easier than ever with the help of the free app, MyHome Scr.APP.book, for your smartphone.” The Department of Insurance also has a home inventory PDF that can be printed. For links to all of these resources visit the Storm Preparedness webpage. “Having an up-to-date home inventory will help make the insurance claims process much easier should your home be damaged by a natural disaster,” notes Commissioner Stewart.

If you do not have flood insurance and live in a flood-prone area it is highly recommended that you consider purchasing flood insurance. Homes located at low elevations and near bodies of water, especially along the state’s eastern limits, are particularly susceptible to flooding during strong thunderstorms, tropical storms and hurricanes. Keep in mind that most flood policies require a 30-day waiting period before they become effective. According to the National Flood Insurance Program, just a single inch of floodwater can cause more than $10,000 in damage to a home. Floods and flash floods occur in all 50 states, and they cannot always be predicted or prepared for which is why purchasing a flood insurance policy as soon as possible is critical to ensuring your property is protected in the event of a disaster.

Below is a brief list of items the Delaware Department of Insurance suggests that you review now, before a disaster strikes. For a complete list of items, visit the Storm Preparedness webpage, mentioned above in this article.

• Make sure that you understand the deductible provision of your policy.
• Keep all of your insurance policies in an easily accessible location.
• If forced to evacuate, keep with you at all times your insurance records, including the name and telephone number of your insurer or insurance agent.
• Be certain you understand the claim procedures of your insurance company.
• Make sure you have insurance up to at least 80% of the value on your home to avoid penalties under any co-insurance provision of your policy.
• Keep all necessary information regarding your health coverage, including prescription information, with your insurance records in the event of an evacuation.

“For the best protection consider scanning all of these important documents and saving them in your personal e-mail or online storage account,” notes Commissioner Stewart. “That way, if documents are lost in a disaster you can still access them from anywhere. Be prepared, you’ll thank yourself later!”

The Delaware Department of Insurance also recommends that residents have evacuation plans and prepare an emergency supply kit. It is recommended that a supply kit should contain: plenty of bottled water, a first aid kit, flashlights, a battery-powered radio, non-perishable food items, blankets, clothing, prescription drugs, eyeglasses, personal hygiene supplies, and a small amount of cash or traveler’s checks. Additionally, if you need to evacuate your home, turn off all utilities to reduce the chance of additional damage and electrical shock when utilities are restored. For more information on these topics visit www.ready.gov.

The Delaware Department of Insurance invites you to find out about storm preparedness, and more, at www.delawareinsurance.gov. From the homepage you can connect to our Facebook page and Twitter account where helpful information is posted on a regular basis. Consumers with questions about their insurance can always call the Consumer Services Division at 1-800-282-8611.

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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.”