The Oregon Insurance Commissioner has extended the open comment period following the Dec. 15 public hearing of the proposed mutual holding company conversion of Mutual of Enumclaw Insurance Co. Comments must be delivered to the Oregon Insurance Commissioner by 5 p.m. on Dec. 29. Comments should be sent to Russell Latham, Financial Regulation Section, Oregon Insurance Division, P. O. Box 14480, Salem, OR 97309-0405.
Mutual of Enumclaw Insurance Co. and its subsidiary, Enumclaw Property and Casualty Insurance Co., have requested permission from the Oregon Insurance Commissioner to reorganize into a holding company structure. Holding companies are corporations that own and control other companies. The new holding company would be the direct owner of Mutual of Enumclaw and the indirect owner of Enumclaw Property and Casualty Insurance Co. Read more about the request in our Dec. 9 blog post.
To find information about viewing the plan of reorganization, view the Dec. 15 public hearing notice from the Oregon Insurance Division.
Friday, December 19, 2014
Insurance Commissioner fines health insurer $50,000
LifeWise Health Plan of Washington has agreed to pay a $50,000 fine for overcharging 5,700 consumers $6 to $38 per month for the first six months of 2014.
The health plans were WiseEssentials 25 and WiseSavings 20, which are catastrophic plans that trade a high deductible for a lower monthly premium. They are usually purchased by young, healthy people who want coverage in case of an injury, accident or serious illness. Each year, health insurers are required to file with the OIC their health plans--called "forms" in insurance vernacular--and the rates they will charge for each plan. The OIC then reviews and ultimately approves the plans and rates, working with the insurers when they need to.
In this case, the 2014 rates that LifeWise filed for those catastrophic plans had decreased slightly, depending on the enrollee’s age, because the deductible increased. From January through June 2014, LifeWise charged those consumers rates that were based on the 2013 plans, which had higher deductibles.
As part of the agreement, called a consent order, LifeWise will repay the affected consumers the amounts they overpaid plus 8 percent annual interest. View the consent order here.
You can search our disciplinary orders or file a complaint against an insurance company, agent or broker on our website.
The health plans were WiseEssentials 25 and WiseSavings 20, which are catastrophic plans that trade a high deductible for a lower monthly premium. They are usually purchased by young, healthy people who want coverage in case of an injury, accident or serious illness. Each year, health insurers are required to file with the OIC their health plans--called "forms" in insurance vernacular--and the rates they will charge for each plan. The OIC then reviews and ultimately approves the plans and rates, working with the insurers when they need to.
In this case, the 2014 rates that LifeWise filed for those catastrophic plans had decreased slightly, depending on the enrollee’s age, because the deductible increased. From January through June 2014, LifeWise charged those consumers rates that were based on the 2013 plans, which had higher deductibles.
As part of the agreement, called a consent order, LifeWise will repay the affected consumers the amounts they overpaid plus 8 percent annual interest. View the consent order here.
You can search our disciplinary orders or file a complaint against an insurance company, agent or broker on our website.
Tuesday, December 16, 2014
Edmonds man no longer able to sell insurance
The Office of the Insurance Commissioner has revoked the license of insurance producer Earl C. Dennis of Edmonds.
In 2012, Dennis borrowed $210,000 from a 79-year-old insurance client, which was a significant portion of the client’s net worth. Dennis promised to secure the loan with the deed to his house, which he never did. He arranged to repay the client at a 2 percent interest rate; an unsecured personal loan from a bank ranges from 7 percent to 15 percent or higher. Dennis stopped making loan payments and still owes the client $90,000. State insurance law allows the Insurance Commissioner to revoke an insurance producer’s license if they borrow money from an insurance client who is not a family member or financial institution.
In 2011 and 2012, Dennis sold the same client three annuities, which the client paid for by surrendering two annuities that had higher guaranteed interest rates. In addition to having lower guaranteed interest rates, the three new annuities had limitations and penalties that the old annuities did not have. Insurance producers who sell annuities are required to make an effort to verify that annuities are suitable for their clients’ financial needs and they are required to adequately explain the products to their clients. Dennis did not meet those requirements in this case.
The OIC sought to revoke Dennis’ license in August 2014, but Dennis invoked his right to a hearing. The hearings officer upheld the OIC’s revocation, which means Dennis is no longer legally able to sell insurance in Washington state. You can read the findings from the hearing on the OIC’s website.
In 2012, Dennis borrowed $210,000 from a 79-year-old insurance client, which was a significant portion of the client’s net worth. Dennis promised to secure the loan with the deed to his house, which he never did. He arranged to repay the client at a 2 percent interest rate; an unsecured personal loan from a bank ranges from 7 percent to 15 percent or higher. Dennis stopped making loan payments and still owes the client $90,000. State insurance law allows the Insurance Commissioner to revoke an insurance producer’s license if they borrow money from an insurance client who is not a family member or financial institution.
In 2011 and 2012, Dennis sold the same client three annuities, which the client paid for by surrendering two annuities that had higher guaranteed interest rates. In addition to having lower guaranteed interest rates, the three new annuities had limitations and penalties that the old annuities did not have. Insurance producers who sell annuities are required to make an effort to verify that annuities are suitable for their clients’ financial needs and they are required to adequately explain the products to their clients. Dennis did not meet those requirements in this case.
The OIC sought to revoke Dennis’ license in August 2014, but Dennis invoked his right to a hearing. The hearings officer upheld the OIC’s revocation, which means Dennis is no longer legally able to sell insurance in Washington state. You can read the findings from the hearing on the OIC’s website.
Wednesday, December 10, 2014
Tacoma woman pleads guilty to felony insurance fraud
Christine Marie Larsen, 30, of Tacoma pled guilty in Pierce County Superior Court to insurance fraud for purchasing insurance on her vehicle after it was totaled.
In November 2013, Larsen’s 2004 Lexus IS300 was totaled in a collision on the freeway while being driven by someone else. The next day, Larsen took out a policy on the car, which was uninsured. She filed a claim for the damages on Dec.1, 2013, stating she had been in a collision that day. The insurance company deemed the car a total loss and paid her $11,250.
The insurer, citing red flags, later investigated the claim and found a Washington State Patrol report for the Nov. 25 collision involving Larsen’s car. The driver was cited for the collision and for not having insurance. The insurer referred the case to the Office of the Insurance Commissioner’s Special Investigations Unit (SIU). SIU investigates insurance fraud and works with the Attorney General’s Office and local prosecutors to prosecute criminal cases.
Larsen was ordered to repay the insurance settlement and court costs. Read the news release about the case.
Tuesday, December 9, 2014
Mutual of Enumclaw seeks to convert to holding company
Mutual of Enumclaw Insurance Co. and its subsidiary, Enumclaw Property and Casualty Insurance Co., have requested permission from the Oregon Insurance Commissioner to reorganize into a holding company structure. Holding companies are corporations that own and control other companies. The new holding company would be the direct owner of Mutual of Enumclaw and the indirect owner of Enumclaw Property and Casualty Insurance Co.
While the Washington Office of the Insurance Commissioner (OIC) is not overseeing this conversion, Mutual of Enumclaw has a large customer base in Washington state. The OIC wants Washington consumers to have an opportunity to attend this hearing or provide comment, if they wish to.
The hearing is at 6 p.m. on Dec. 15 in Seattle. View the notice for the hearing location and instructions on how to participate by telephone. Comments may be submitted in writing to this address before Dec. 22:
Russell Latham, Financial Regulation Section, Oregon Insurance Division
P.O. Box 14480
Salem, OR 97309-0405
While the Washington Office of the Insurance Commissioner (OIC) is not overseeing this conversion, Mutual of Enumclaw has a large customer base in Washington state. The OIC wants Washington consumers to have an opportunity to attend this hearing or provide comment, if they wish to.
The hearing is at 6 p.m. on Dec. 15 in Seattle. View the notice for the hearing location and instructions on how to participate by telephone. Comments may be submitted in writing to this address before Dec. 22:
Russell Latham, Financial Regulation Section, Oregon Insurance Division
P.O. Box 14480
Salem, OR 97309-0405
Friday, December 5, 2014
OIC's online applications not available
Some of the Office of the Insurance Commissioner's online applications are down or do not have full functionality. We are working on resolving these issues and hope to restore all online services as soon as possible. Thank you for your patience.
Thursday, December 4, 2014
Contractors Bonding and Insurance Co. seeks OK to redomesticate
Contractors Bonding and Insurance Co. has requested approval from the Office of the Insurance Commissioner (OIC) to redomesticate from Washington state to Illinois. View all related documents.
The OIC has scheduled a public hearing on this request for 11:30 a.m. on Dec. 16 in the Tumwater office. All interested parties may submit letters of support or objections to hearings@oic.wa.gov. Any member of the public may attend the hearing.
The OIC has scheduled a public hearing on this request for 11:30 a.m. on Dec. 16 in the Tumwater office. All interested parties may submit letters of support or objections to hearings@oic.wa.gov. Any member of the public may attend the hearing.
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