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Lloyds of London commits to creation of safe, inclusive work environment. (London Insurance News 360) - On March 26, executives at Lloyds announced a robust plan of action to handle reports of sexual harassment in the market and create an inclusive working environment where employees feel safe. Working with the Lloyds Market Association, and the London and International Insurance Brokers Association, the Lloyd’s Board and Council developed the wide ranging plan, which inclu...des the following: Provision of an independently managed, confidential and market-wide access point for reporting inappropriate behaviors. Confirmation that, where investigations conclude that individuals have a case to answer, they will be subject to sanctions from their own companies and also from Lloyd’s. They may be banned from entering Lloyd’s for a fixed period and potentially for life. Undertaking an independent and market-wide culture survey to identify the scale and scope of the issue, and to inform further action. A comprehensive review of policies and practices across the Lloyd’s market, with a view to identifying and sharing best practice. Provision of training focused on prevention, as well as reporting and supporting those who have been subjected to inappropriate behavior. This is in addition to the company’s commitment to hearing accounts of women who spoke to Bloomberg, in a safe and confidential space; and making changes to Lloyd’s Nominations Committee to improve diversity. Fiona Luck and Vicky Carter will join the committee immediately, succeeding Sir David Manning and Charles Franks. It has been distressing to hear about the experiences of women in the Lloyd’s market. No one should be subjected to this sort of behavior, and if it does happen, everyone has the right to be heard and for those responsible to be held to account, said John Neal, CEO of Lloyd’s. I am pleased that the market has given its full support for a strong set of actions, and I am determined that Lloyd’s offers a safe and inclusive working environment for everyone. Source: LLOYD’S

Tennessee residents get millions back through mediation (Nashville, TN Insurance News 360) - The Tennessee Department of Commerce and Insurance returned or located more than $17.9 million in 2019 through mediation and recovery of lost life insurance benefits, the department announced on Jan. 10. Tennessee residents received more than $5.6 million through mediation, where TDCI insurance investigators worked with insurance companies and policy holders to overturn and pay wron...gfully denied claims. In 2017, consumers received more than $6.5 million through those efforts. Additionally, $11,695,834 in life insurance benefits was located in 2018 through the Life Insurance Policy Locator Service. This free service, which is provided by the National Association of Insurance Commissioners (NAIC) via TDCI’s Insurance Division, assists consumers in finding insurance policies or annuities for deceased loves ones. In 2017, nearly $3 million was returned to consumers through the Life Insurance Policy Locator Service. I’m proud of the efforts this year by our Insurance Division to help deserving consumers get the benefits of their insurance coverages, said TDCI Commissioner and NAIC Past President Julie Mix McPeak. We encourage Tennesseans to always remember to call our team with questions about their insurance coverages or to learn what resources may be available. In addition to the Department’s mediation and recovery efforts, the Insurance Division levied over $600,000 in civil penalties through disciplinary actions taken on behalf of Tennessee consumers against licensees who were found to be in violation of state insurance laws. TDCI encourages consumers to contact the Department if they feel they have been unjustly denied a claim, if they have experienced unlicensed or unlawful activity, or even if they have a question or concern about their insurance policies. If you have questions about insurance, visit the department’s website or call 1-800-342-4029 or (615) 741-2218. Source: Tennessee Department of Commerce & Insurance.

Job openings, hiring fall in November (Washington, DC Insurance News 360) - The U.S. Bureau of Labor Statistics’ Job Opening and Labor Turnover Survey for November revealed a drop to 6.9 million openings and a slight decrease in hires to 5.7 million, and a slight fall in quits to 3.4 million. Job openings dropped 243,000 to 6.9 percent on the last day of November, and job openings in the private sector decreased by 237,000. There was little change in government.... Job openings in other services and construction both fell (66,000 and 45,000, respectively). The number of new hires dropped by 218,000 to 5.7 million in November, and the rate of hires was 3.8 percent overall. The federal government increased hiring by 8,000 positions, but professional and business services fell by 167,000, and total private sector hires fell by 236,000. Separations didn’t change much, with 5.5 million in November, and a rate of 3.7 percent. Total separations decreased in professional and business services (-122,000) and in accommodation and food services (-88,000). The number of total separations was little changed in all four regions. The number of quits fell by 112,000. In professional and business services, there was a drop of 84,000; accommodation and food services saw a decrease of 62,000. Source: U. S. Bureau of Labor Statistics.

Tennessee residents get millions back through mediation (Nashville, TN - Insurance News 360) - The Tennessee Department of Commerce and Insurance returned or located more than $17.9 million in 2019 through mediation and recovery of lost life insurance benefits, the department announced on Jan. 10. Tennessee residents received more than $5.6 million through mediation, where TDCI insurance investigators worked with insurance companies and policy holders to overturn and pay wron...gfully denied claims. In 2017, consumers received more than $6.5 million through those efforts. Additionally, $11,695,834 in life insurance benefits was located in 2018 through the Life Insurance Policy Locator Service. This free service, which is provided by the National Association of Insurance Commissioners (NAIC) via TDCI’s Insurance Division, assists consumers in finding insurance policies or annuities for deceased loves ones. In 2017, nearly $3 million was returned to consumers through the Life Insurance Policy Locator Service. I’m proud of the efforts this year by our Insurance Division to help deserving consumers get the benefits of their insurance coverages, said TDCI Commissioner and NAIC Past President Julie Mix McPeak. We encourage Tennesseans to always remember to call our team with questions about their insurance coverages or to learn what resources may be available. In addition to the Department’s mediation and recovery efforts, the Insurance Division levied over $600,000 in civil penalties through disciplinary actions taken on behalf of Tennessee consumers against licensees who were found to be in violation of state insurance laws. TDCI encourages consumers to contact the Department if they feel they have been unjustly denied a claim, if they have experienced unlicensed or unlawful activity, or even if they have a question or concern about their insurance policies. If you have questions about insurance, visit the department’s website or call 1-800-342-4029 or (615) 741-2218. Source: Tennessee Department of Commerce & Insurance.

Vermont Department of Financial Regulation and Secretary of State Collaborate on Captive Insurance Blockchain Pilot (Montpelier, VT - Insurance News 360) - Vermont Department of Financial Regulation Commissioner Michael Pieciak and Secretary of State Jim Condos on Jan. 9 signed a memorandum of understanding regarding a collaboration to explore blockchain technology and its use in digital record keeping practices of the captive insurance industry. The next day the two offic...es issued a request for information to identify vendors who may work with Vermont to create a pilot program allowing new captive insurance companies to register with the Secretary of State’s office using blockchain technology. The program is meant to test the functionality of blockchain in the state’s regulatory processes. It will include a review and revision of relevant statutes, rules, regulations and bulletins to ease implementation. Developments in technology provide opportunities for government to improve efficiency and transparency, cut red tape, and improve services for Vermonters, said Secretary Condos. This pilot will allow us to examine whether or not the application of blockchain technology for digital recordkeeping can improve aspects of the state regulatory process. Blockchain or similar digital ledger technology is designed to create a transparent and validated record of transactions, while providing increased efficiency, accuracy, and security for users when compared to traditional recordkeeping methods. Financial services firms are innovating at lightning speed and regulators have an obligation to keep up, said Commissioner Pieciak. This partnership with the Secretary of State provides a great opportunity for our teams to become better acquainted with distributed ledger technology and understand how the state and Vermont businesses might benefit. Vermont is the world-wide leader in captive insurance by premium written and third in the world by active licenses. The pilot program will help the state identify areas where the use of blockchain technology in regulatory and other government business may increase data security and reduce costs for residents and those doing business in Vermont. The adoption of this emerging technology may yield significant benefits such as more efficient administration of their respective duties while maximizing taxpayer value for Vermont’s citizens. Questions related to the RFI are due on January 24, 2019 and the RFI is due on February 14, 2019. Connect with the Vermont Department of Financial Regulation on Twitter, Facebook, and on our website. Source: Vermont Department of Financial Regulation.

(Jefferson City, MO - ) - Missouri residents are affected by large bills and aggressive collection tactics after using air ambulance providers, according to a report released on Jan. 8, 2019, by the Missouri Department of Insurance, Financial Institutions and Professional Registration (DIFP). The DIFP initiated a data call for insurers in the state and analyzed fully-insured health coverage under the department’s regulatory purview. The result is that they uncovered an est...Continue reading

Minnesota Commerce Department investigation reveals Frontier Communications failure to provide adequate, reliable service (Saint Paul, MN - Insurance News 360) - On Jan. 4, the Minnesota Commerce Department filed an investigative report with the Minnesota Public Utilities Commission alleging a failure by Frontier Communications to provide adequate, reliable phone and internet service to customers in Minnesota. The report suggests that the company be made to refund or credit... customers for service outages and unauthorized charges; the company should also add customer service staff, and invest in infrastructure and equipment to better the level of services provided. The investigation focused on the service quality, customer service and billing practices of Frontier Communications of Minnesota, Inc., and its affiliate, Citizens Telecommunications of Minnesota, LLC. Those companies provide landline phone service to almost 100,000 Minnesota homes and businesses, and internet service in northeastern and southern Minnesota, as well as the Twin Cities metro area. SEven public hearings occurred throughout Frontier’s service area, and the report is based on more than 1,000 consumer complaints and statements, as well as the company’s responses to questions and request from the Commerce Department. The investigative report details a wide range of concerns about Frontier: Frequent and lengthy service outages, including loss of customer access to 911 emergency services; Delays in repairing and restoring service; Failure to provide expedited responses to service outages affecting vulnerable customers with medical needs; Failure to maintain and repair equipment, causing service outages and leading to public safety hazards such as lines and damaged equipment on the ground; Lack of investment in infrastructure to ensure reliable service; Frequent billing errors, including inaccurate and unauthorized charges; Failure to provide refunds or bill credits for service outages; Lack of timely, responsive customer service, including lengthy call wait times, inaccurate information and lost repair tickets; and Discriminatory practices such as prioritizing new service installations over repairs of existing service and providing slower repair services in rural areas compared to more populated areas. The report is available on the Minnesota Commerce Department website (mn.gov/commerce). It is also available on the Minnesota Public Utilities Commission website (mn.gov/puc). Click on the eDockets link to go to the search page and then type 18-122 for the docket number. Source: Minnesota Department of Commerce.

Hayashida named Hawaii Insurance Commissioner (Honolulu, HI - Insurance News 360) - Colin M. Hayashida was named Hawaii insurance commissioner, according to an announcement issued on Jan. 3. Department of Commerce and Consumer Affairs Commissioner Catherine P. Awakuni Colon made the appointment, effective Jan. 1, 2019. I’m honored to have this opportunity and look forward to undertaking the important role of overseeing and supporting Hawaii’s insurance marketplace, said ...Hayashida. With ongoing federal healthcare reform and the impacts of natural disasters in the state, the insurance industry remains fluid with significant issues that we must monitor and navigate. The Insurance Division and its dedicated staff have consistently risen to the challenges before them, and it is my goal to maintain this level of commitment and service to Hawaii and its residents. Starting in 2000, Hayashida worked in various analytical jobs within the Insurance Division. Since 2011, he served as the insurance rate and policy analysis manager. Source: Hawaii Insurance Department.

Delaware Insurance Department Approves Genworth Acquisition by China Oceanwide (Dover, DE Insurance News 360) - The application from China Oceanwide Holdings Group Co. Ltd., and its affiliates to acquire Genworth Life Insurance Company and certain affiliates has been approved by Delaware Insurance Commissioner Trinidad Navarro. The application was filed more than two years ago, and in the past two years, the two companies have adjusted the transaction to address different q...uestions posed by regulators at the state, federal, and international levels. Commissioner Navarro approved the application after a November 28, 2018 public hearing, where the findings of former Vice Chancellor Stephen P. Lamb were explained. Judge Lamb was appointed to preside at the public hearing and present him with findings of facts, conclusions of law, and a recommendation as to whether the proposed transaction meets Delaware’s legal requirements for approval. The Delaware Department of Insurance used internal expert financial staff, along with outside experts to scrutinize the financial, actuarial and data security aspects of this transaction, agreed to notice the public hearing after the parties recently agreed to deposit $375 million in liquid funds into GLIC. These additional liquid funds will be invested in GLIC and available to pay policyholders was cited in the testimony of the Department witness, by Judge Lamb in his findings, and today by Commissioner Navarro as being vital to the approval of this transaction. I am satisfied that China Oceanwide brings immediate new value to the policyholders, and I look forward to working with them and with GLIC’s management to assure that the safety of benefits to GLICs policyholders is always considered the top priority. Commissioner Navarro’s approval includes certain additional conditions to assure the ongoing safety of GLIC’s policyholders. This includes restrictions on the parties to assure that GLIC’s funds are used for policyholders; prohibiting any dividends without the Department’s prior approval and tasking China Oceanwide and GLIC to establish teams to continuously meet and respond to Department requests focused on measures of financial health. I know that no one act will fix all the challenges of long term care, but I am satisfied that this approval is a step forward, to be followed by many future steps to protect the policyholders, Navarro said. Source: Delaware Insurance Department.

California Insurance Commissioner (Sacramento, CA - Insurance News 360) - Commissioner Jones blasts Trump Administration rule interfering access to abortion, creating confusion that leads to loss of insurance On Jan. 4, California Insurance Commissioner Dave Jones sent a letter to the U.S Department of Health and Human Services opposing the proposed rule Patient Protection and Affordable Care Act; Exchange Program Integrity. ... This proposed rule pertains to policies through the exchange, and would require insurers to send separate bills each month for consumers who enroll in health insurance policies that include abortion coverage. The bill would cover the portion of the premium charged for abortion services. State law requires that health insurance policies include abortion coverage. In part, Commissioner Jones’ letter reads: Californians have an inalienable right to privacy secured by the California Constitution, and that right includes the right to choose whether to bear a child or choose to obtain an abortion. The State of California is forbidden from denying or interfering with someone exercising that right. I urge you to withdraw the amendments to the Segregation of Funds for Abortion Services federal rule (45 CFR 156.280) found in the Patient Protection and Affordable Care Act; Exchange Program Integrity proposed rule. The proposed amendments to 45 CFR 156.280 serve no purpose other than interfering with access to abortion, and have the potential to create substantial consumer confusion, which could result in cancelation of health coverage generally for some individuals. In California alone this ill-conceived proposed regulation would affect more than 1.3 million consumers enrolled in qualified health plans (QHPs) through California’s Exchange, Covered California. The proposed amendment to the Segregation of Funds for Abortion Services rule found in the Exchange Program Integrity proposed rule is unnecessary and extraordinarily burdensome to consumers and health insurers. It is both absurd and punitive to single out this one medical service and require a separate bill and separate payment be made for this coverage. In addition to inappropriately interfering with a woman’s right to abortion coverage, this rule will likely result in the cancellation of the health insurance policies of consumers who fail to understand these burdensome rules. The proposed changes to 45 CFR 156.280 are entirely arbitrary and capricious, inconsistent with statute, and come with unacceptable costs to both consumers and QHP issuers. California Department of Insurance strongly opposes the proposed changes to the existing language of 156.280, because these changes will harm consumers, issuers, and health insurance markets. This proposed regulation, a burdensome federal government intrusion, serves no legitimate purpose and should be withdrawn. Source: California Insurance Department.

Report detailing analysis of climate risk exposure of insurers’ investments now available (Sacramento, CA - Insurance Service 360) - On Jan. 4, California Insurance Commissioner Dave Jones released the results of analysis of climate risk exposure faced by insurance industry investors. The climate risk scenario analysis, prepared for the Department by leading climate risk modeler 2 Investing Initiative, is the first of its kind to include analysis of both physical and transit...ion risks faced by insurers assets. An under 2 degrees Celsius scenario is also included in the analysis for the first time. This initiative shows that scenario analysis is an accessible tool for financial supervisors to monitor both physical and transition climate risks and support their regulated entities on managing these risks. It creates a blueprint that other financial supervisors can follow. Automated, scalable and technology driven solutions related to sustainability are ushering in an era of more cost effective supervision - both for supervisors and financial institutions, said Jakob Thomae, Managing Director, 2 Investing Initiative. The climate risk scenario reveals that insurer assets are exposed to climate-related transition risks with the possibility of fossil fuel investments becoming stranded assets and that these assets face additional risks due to climate-related physical impacts. For example, investments in coal-powered utilities are significantly exposed to wildfires and that a number of other assets in which insurers invest could be adversely impacted by water scarcity. Insurers, like all investors, need to analyze and consider the climate change related risks facing their considerable investment portfolios, said Insurance Commissioner Dave Jones. While we are the first financial regulator to undertake an analysis of both climate-related physical risks and transition risks to insurer investments, we know that other financial regulators as well as investors are also moving forward to implement the important recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures, including climate risk scenario analysis. I urge insurance companies to run multiple scenarios in assessing their investment and underwriting exposure to climate-related risk, especially in light of the recent UN Intergovernmental Panel on Climate Change and US National Climate Assessment reports and the adoption of an international Paris Agreement ‘rulebook’ at COP 24 all of which point to a transition away from burning fossil fuels. Climate-related physical risks such as wildfires are also becoming more pronounced, with implications for insurers as underwriters and investors. Source: California Insurance Department.

Supreme Court denies review of decision upholding Commissioner’s Fair Claims Settlement Practices Regulations (Los Angeles, CA - Insurance News 360) - A decade of legal battles over the implementation of the Unfair Insurance Practices Act (UIPA), the California Supreme Court denied review of the 4th Appellate District’s decision that upheld Commissioner Dave Jones’ Fair Claims Settlement Practices Regulations. The regulations detail how insurance claims must be processed, and...Continue reading

California Insurance Commissioner estimates COIN impact investments could reach $29 billion (Sacramento, CA - Insurance News 360) - Investments through the California Organized Invenstment Network (COIN) are expected to reach $29 billion by the end of 2018, according to California Insurance Commissioner Dave Jones. The report explains the program, which sources and structures financially sound investments for insurers. The expected outcome is based on prior data call finding...s and tracking of these investments, which support renewable energy projects, affordable housing opportunities, health centers, economic development, jobs, and numerous other social and environmental benefits in the state. Insurance company holdings in California community development and green investments have more than tripled from $6.6 billion at the end of 2010 to $22 billion at the end of 2015, according to prior data call findings. Growth trends show that COIN could have quadrupled from $6.6 billion in 2010, when Commissioner Jones was first elected to lead the Department of Insurance. Insurer investments into California’s underserved communities and environment remain crucial to the economic development of the State, said Insurance Commissioner Dave Jones. I encourage policymakers to authorize the Department of Insurance to obtain annual reporting from insurers on their community and green investments in California and to reinstate the COIN CDFI Tax Credit. Established in 1996, COIN is a collaborative effort between the California Department of Insurance, insurance industry, community affordable housing and economic development organizations, and community advocates to support investments benefitting California's environment and low-to-moderate (LMI) income and rural communities. Source: California Insurance Department.