New law makes insurance fraud either a Class B or Class C
felony, depending on the extent of the crime.
Approves new WC pure premium rate at average of $2.49 per $100
of payroll. That is an 8.26% increase over the rate approved in
January. >> Stop-loss bill passes in Senate. S.B. 1431
aims to cap small-group stop-loss premiums and prevent carriers
from cherry-picking younger or healthier work groups and
excluding those in riskier fields. >> Awards Accenture
$360 million contract to build health insurance exchange
website and enrollment system. Contract subject to federal
Gov. Dannel Malloy signs two insurance laws. First
allows insurance commissioner to establish supervisory colleges
of domestic and international regulators to conduct financial
examinations of insurers that are part of international holding
companies. That should give regulators a better handle on the
effect of parent’s actions and finances on the insurer.
The second law gives the Insurance Department authority to
evaluate the financial strength of foreign reinsurers and the
U.S. insurers that buy their reinsurance. It also allows for a
sliding scale for foreign reinsurer collateral requirements if
the reinsurer meets Insurance Department financial and
home-country supervisory requirements.
Captive insurance risk management certificate program
graduates first class. Program created by Insurance Department
and University of Delaware.
Barry Gilway takes over as president of Citizens
Property. He replaces Tom Grady who served as interim president
since March. Gilway has held top executive positions at W. R.
Berkley, Zurich, Zenith North America Canada, and Mattei
Insurance Services. He also worked with Mystic Capital
Advisors, an M&A advisor for independent agencies and MGAs.
>> New law allows business owners and officers to file
for WC exemption electronically, permits corporate officers of
LLCs who own at least 10% stake in company to exempt themselves
from workers comp, and declares WC insurers are no longer
subject to excess profit law, which required them to refund
money to policyholders if profits exceeded estimates by more
than 5% over three preceding calendar years.
Gov. Terry Branstad names Nick Gerhart as insurance
commissioner to succeed Susan Voss, who is retiring at the end
of the year. Gerhart, 37, will begin the job this fall and take
on full responsibilities when Voss departs. Gerhart is
currently VP of compliance and regulatory affairs at Sammons
Financial Group and was an executive at American Equity
Investment Life Insurance.
Insurance Commissioner Jim Donelon says there are more
companies doing business in Louisiana now than on the day
before Hurricane Katrina hit in Aug. 2005. Points to recovery
of property insurance market. >> Joins Treasury
Department’s federal Financial Crimes Enforcement Network
and will share info with feds to track trends and patterns of
suspicious financial activity and target fraud.
State-run workers comp insurer, Injured Workers’
Insurance Fund, will become private, nonprofit company on Oct.
1, 2013. Will re-brand as Chesapeake Employers’
Insurance. $50 million of IWIF’s $335 million in surplus
funds will be transferred into the state general fund by July
1, 2013. IWIF is the state’s largest writer of workers
comp and the insurer of last resort, a role it will retain
after privatization. The governor will still appoint its board
of directors when it re-brands, but the state won’t have
any claim on its surplus, which will be for the exclusive
benefit of policyholders.
Comes in last in Institute for Business and Home Safety
evaluation of 18 hurricane-prone states’ building codes
and enforcement. IBHS says it’s largely due to the fact
the state has no statewide building code.