Life insurance: Do your heirs a favor and check your policies, wills from time to time

Life insurance can be a complicated topic under the best circumstances. However, things can quickly become more complicated than you bargained for. Recently, our consumer advocates received an inquiry about what happens to a life insurance policy payout if the person who is named as the beneficiary has died. 

In Washington, the life insurance payment would go to the beneficiary/ies named on the policy. If the person named as beneficiary has died, the money would go to the policyholder’s estate. The person named as the estate’s representative would distribute the money in accordance with the terms of the policyholder’s will. If there are no terms laid out in the policyholder’s will, the designated personal representative is responsible for deciding how to distribute the assets. The personal representative is obligated to act in the best interest of the estate rather than his own best interest. 

Insurance companies are not obligated to follow the terms of a policyholder’s will and typically refuse seeing a person’s will even if someone offers to share it because they don’t want the responsibility of trying to split an insurance payout among multiple parties.

However, many consumers do not have a will or don’t have enough assets to require the estate to go through probate. In that case, the life insurance company would send the money to the Washington state Department of Revenue’s unclaimed property.  

Another factor is whether the consumer was married and living in a community property state at the time s/he bought the policy. In community property state, including Washington, spouses are entitled to 50 percent of a life insurance policy’s proceeds, even if the spouse isn’t listed as a beneficiary of the policy.    

If the policy lists more than one beneficiary and one or more has died at the time of the policy’s proceeds are claimed, there’s a chance the decision will be made by a court.  

The lessons here are:

• Review your insurance policies periodically to take a look at your beneficiaries.
• Review your will periodically to take a look at the terms.
• If you don’t have a will, make one. You can use an attorney or you can find free will templates online. If you do your own will, Washington state law requires that you get it notarized or have two people witness you signing it. It doesn’t need to be filed until after you die, and it’s a good idea to give your personal representative(s) a copy along with your heirs. It’s also a good idea to keep a copy for yourself somewhere safe that is not at your home, in case of a natural disaster or fire. Do not keep the only copy of your will in a safe, because your heirs likely will need a court order to open your safe to see your will.

If you have a complicated estate or property holdings, it is best to consult an attorney to make sure your wishes are documented. 

Entry-level IT help desk position open at our headquarters

We are hiring a non-permanent Information Technology Technician 2 in our Tumwater headquarters. The position is expected to last 12 months and will support laptop and desktop computers for more than 230 employees, agency-wide. This is an entry-level position that reports to our IT Service Desk Lead.

This position requires two years of experience in information technology-related activities such as testing, installing, maintaining, supporting, and/or averting hardware/software system failures on client applications, hardware and software products, mainframe systems, network infrastructure equipment, or telecommunications software or hardware.

The job closes on June 9. To find out more or apply, visit careers.wa.gov. View all of our job openings here.

Make sure you are covered when you move

This is a popular time of year to move and it’s also National Moving Month. College students are moving for the summer and many families opt to move this time of year as well. Seattle media recently reported the theft of two fully loaded U-Hauls that contained the entirety of the consumers’ possessions. 

Here are some tips for moving, whether you hire a mover or do the move yourself:

• Inventory your belongings. If need to make a claim, you will expedite the process if you know what you lost. The National Association of Insurance Commissioners has an iPhone app, an Android app and a printable PDF form.
• Contact your insurance company to find out if your homeowner or renter insurance covers your belongings while you are in transit and to transfer your coverage from your old residence to your new residence.
• If you rent a moving trailer or vehicle, make sure your auto policy covers your use of the vehicle before you decline the rental company’s insurance. Some auto policies exclude vehicles that exceed a certain weight.

Questions? Contact our consumer advocates at 1-800-562-6900 or online. 

Olympia man gets 30 days in jail for bad claim

An Olympia man who filed a fraudulent insurance claim with State Farm was recently sentenced to 30 days in jail, one year of probation, restitution to State Farm in an amount that will be determined, and court fees.

In November 2012, Allen C. Deen, 23, filed a $3,795 claim with State Farm for damage to his 2008 Ducati motorcycle. In the claim, he said the damage occurred when he was pushing it across grass, slipped and fell with the motorcycle. State Farm found records that it had paid a $6,577 claim on the same motorcycle for the same damage in May 2012 to another customer, who previously owned the motorcycle. The previous owner had sold the damaged motorcycle to Deen “as is” in June 2012. Deen later withdrew the claim and received no money from State Farm.

Deen pleaded guilty to attempted second-degree theft, a felony, and filing a false claim, a misdemeanor, in Thurston County Superior Court.

State Farm referred the case to the Insurance Commissioner’s Special Investigations Unit (SIU), which investigates criminal insurance fraud in Washington state. Read more about SIU’s work. 

OIC has saved auto insurance consumers nearly $20 million since 2010

The Office of the Insurance Commissioner's rate decisions have saved auto insurance consumers nearly $20 million in premiums since 2010.

Personal auto insurers are required to file their proposed rates and rating plans with our office whenever there's a rate change. Our actuaries review the proposed rates, rating plans, and supporting documentation to be sure that the rates are not excessive, inadequate or discriminatory.

From 2010 through 2013, the rates we approved for the top 20 personal auto insurers in Washington saved consumers nearly $20 million in premiums.

• 2013: $8.9 million
• 2012: $5.6 million
• 2011: $2.7 million
• 2010: $2.7 million

Read more about auto insurance in Washington state.

OIC hiring position to ensure health plans offer adequate networks

We have a second position open for a Functional Program Analyst 3 position to work in our Tumwater headquarters. This position differs a little from the position we announced last week.

This person in this position will review all health care and disability insurance plan agreements to make sure they meet our new network adequacy rule, which takes effect on May 26. Under the new rule, all health plans must:

• Have an adequate number of medical providers and facilities to support delivery of and access to covered services without unreasonable delay.

• Provide access to care in a timely manner and within reasonable proximity.

• Ensure that medical providers who serve predominately low-income, medically underserved individuals (called, Essential Community Providers) are included, based on the needs of the population served.

Health plans in recent years have narrowed their medical provider networks as a way to lower health plan costs. Insurance Commissioner Mike Kreidler has stated often that he supports health plans' efforts to keep down costs for consumers, but that cannot come at the expense of consumers' access to health care.

This position requires a bachelor's degree and two years' experience working with the insurance industry or regulation of the insurance industry, and with contracts and databases.

We will start reviewing applications on May 19. Read more about the position, including how to apply, on careers.wa.gov.

OIC employees earn awards for their work

Two OIC employees will be honored for their work on behalf of Washington state.

 

Rebuilding OIC's financial examination program has earned Patrick McNaughton a 2014 Governor’s Award for Leadership in Management.
McNaughton is the chief financial examiner, based in our Seattle office. He manages 23 credentialed examiners who are responsible for auditing 45 domestic insurance companies, 90 charitable annuity issuers, and certain public entities, such as the state Health Care Authority. 

 “Pat was instrumental in rebuilding our financial examination program,” said Commissioner Mike Kreidler. “Financial exams are conducted to ensure insurance companies in Washington honor the promises they make. The impact of a well-regulated insurance industry cannot be overstated in terms of our state’s economy. Washington’s $28 billion insurance industry impacts virtually every adult, family, and business in the state and provides about $500 million annually for the general fund.”
McNaughton’s work enabled the OIC to regain accreditation by the National Association of Insurance Commissioners, and helped create a new system of risk-focused financial analysis and examination. 

McNaughton will join other award recipients at a luncheon with Gov. Jay Inslee on June 3. 

Detective Bennie Hamilton in our Special Investigations Unit (SIU) received the 2014 Community Relations/Partnership Award from the American Society of Industrial Security (ASIS). The Olympic Mountain Chapter of ASIS recognized Hamilton due to his outreach and partnership development with scores of insurance companies, other private companies and public sector agencies that combat fraud. Due to these efforts, Hamilton has successfully worked hundreds of criminal insurance fraud cases resulting in numerous convictions for theft, attempted theft, filing false insurance claims, forgery, perjury and other offenses. Hamilton is a 35-year law enforcement veteran in Washington state, serving the past seven years with SIU.

“Bennie’s work has made a difference to Washington consumers,” said Kreidler. “It is fitting that Bennie received this award during Public Service Recognition Week, because the work he and his colleagues do every day is worthy of recognition. This award also embodies the nature of the work we do through SIU, which relies on partnership and collaboration with law enforcement, other governments and insurance companies to combat fraud and protect consumers in Washington state.”

SIU identifies and investigates for prosecution criminal organizations and individuals engaged in fraud schemes that target the insurance industry. Partnerships with insurance industry professionals and a variety of private and public sector entities and individuals are critical for success in combating fraud while protecting consumers.