This article is part of a series sponsored by AgentSync.
Differences in state laws, compliance protocols, industry transparency and general regulatory culture may give the impression that keeping up with industry changes is a bit like herding cats. So, what better way to discuss some more local insurance news than with Supervision Roundup?
We will incorporate various regulatory changes, compliance actions and Commissioner decisions into our roundups on an ongoing basis and in no particular order or hierarchy. As a disclaimer: A lot is happening in the United States at any given time, so this is not a comprehensive picture of state-level actions by any means. Instead, think of it as a sample board for regulation.
Also note: If we restate our interpretation of a legal decision, this is just some armchair insurance speculation and not legal advice at all. if you need For legal advice, hire a lawyer.
4 Los Angeles area residents, 3 cars and a…bear?
No, this is not a prelude to a terrible joke, but as far as insurance fraud goes, this yes Very interesting. According to a press release issued by the California Department of Insurance on November 13, 2024, four Los Angeles residents were arrested in connection with an insurance fraud scheme that officials aptly dubbed “Operation Bear Claw.” The story goes like this:
On January 28, 2024, Ruben Tamrazian, Ararat Chirkinian, Vahe Muradkhanyan, and Alifiya Zuckerman reported that a bear entered their 2010 Rolls-Royce near Lake Arrowhead, California, and caused damage to the interior of the vehicle. The men were lucky enough to capture video of the proposed attack and provided it in their claim. However, after reviewing the footage, the insurance company made a shocking discovery.
It appears that the person who attacked the car was not a bear, but someone dressed in a bear costume. After the initial discovery, the insurance company referred the case to the Department of Insurance, which subsequently discovered two identical claims filed by the suspect with other insurance companies, involving two different vehicles, each accompanied by video evidence.
To further confirm their suspicions, detectives invited a biologist from the California Department of Fish and Wildlife to review the three videos. Biologists agree that all three videos show someone apparently wearing a bear suit entering and damaging the vehicle. If the evidence wasn’t enough, the final piece of the puzzle confirmed it. After searching the suspect’s home, detectives did find the suspicious bear costume. Talk about a hairy (or should we say hairy?) situation.
The San Bernardino County District Attorney’s Office is currently prosecuting the case, and we have a feeling the suspects will not receive the $141,839 in car damage they tried to defraud the insurance company. But no matter the outcome of the case, it seems these fraudsters can only bear it with a smile.
Oh, deer! Missouri reminds drivers to watch out for wildlife
The Missouri Department of Commerce and Insurance (DCI) is reminding motorists to be aware of increased deer activity on roadways during the upcoming winter.
In 2023, the state recorded more than 3,500 crashes involving deer, resulting in 420 injuries and four deaths. Missouri DCI Director Chlora Lindley-Myers reminds the state’s drivers that “dawn and dusk are the most vulnerable times for deer collisions” and to “always exercise caution and check both sides of the road regularly.” But unfortunately, no matter how safe a driver is, some accidents are inevitable.
If hitting Bambi isn’t traumatic enough for the insured, you may not be able to get your carrier to cover the loss if your auto policy only includes collision or liability coverage. Generally speaking, you need comprehensive auto insurance to cover any injuries or damage to your vehicle caused by hitting an animal. So, as Lindley-Myers says, “It’s best to be prepared and contact your agent or carrier to discuss appropriate coverage.” Drivers, stay safe out there! Especially as the days get darker for longer periods of time.
Does your home insurance cover burning turkey?
If you’re spending some extra time in the kitchen this holiday season cooking turkey, tofu chicken, or whatever else pleases your fancy, now might be a good time to review your homeowners insurance policy. The state of Maryland has issued a newsletter reminding residents to consider the additional risks associated with this time of year and make sure they have the appropriate level of insurance in case their feast catches fire.
In addition to spending extra time in the kitchen, Maryland’s newsletter highlights some of the other risks an insurance policy can cover, including increased travel and coverage for holiday shopping. So whether you’re taking the kids to grandma’s house or escaping the winter chill on a sunny beach vacation, you may want to consider purchasing travel insurance to protect your trip. If you plan on giving generous gifts this year, talk to your agent about whether your home or renters insurance policy covers porch piracy.
For insurance producers, now is a great time to educate your customers about these coverages and provide them with resources and advice to ensure they stay safe and protect themselves and the things that matter most to them during the holidays.
Other state regulatory changes
california Insurance Commissioner Recardo Lara announced an upcoming action to help protect communities affected by wildfires in Ventura County. Once fire extent is determined, Lara will issue advisories to protect homeowners in certain areas from policy non-renewal or cancellation due to wildfire risk. The coverages, which will last for one year, are part of Laura’s major effort to address California’s insurance crisis through perpetual insurance strategies.
colorado Applications are now being accepted for the FAIR Program Committee. The nine-member committee is currently in the final stages of implementing the FAIR program in the state. Currently, the only vacancy is for the producer seat, which expires on January 1, 2025, but the state encourages individuals to apply for all positions to maintain a diverse and qualified candidate pool going forward. Interested persons can apply using this form.
delaware Effective November 1, 2024, reduce the non-resident license appointment fee from $50 to $25.
Florida Announced that starting November 18, 2024, all remaining line information portal (SLIP) users will be redirected to SLIP+. Users can use existing SLIP credentials to log in to the new system. You can find more information about SLIP+ updates here.
Georgia Effective November 18, 2024, the retaliation fee increases from $16 to $20.
kansas Updated application fees for resident agents, nonresident agents and public adjusters, effective January 1, 2025.
- Resident Agent: USD 15
- Non-resident agent: USD 50
- Public adjuster: $100
Massachusetts Exam verification for non-resident public adjuster and consultant applicants will begin on December 13, 2024.
New Hampshire Significant changes announced to the regulation of consumer guarantee contracts aimed at extending protection for individuals purchasing service contracts relating to homes, vehicles and other products. The changes, which will take effect on January 1, 2025, are driven in large part by an increase in consumer complaints about a lack of clarity and consistency in the way service contracts are regulated within the state. We love seeing these positive, consumer-led changes!
Oklahoma The announcement reminds insurers that any decisions or actions made or supported by artificial intelligence that affect consumers must comply with all applicable insurance laws and regulations, including those that address unfair trade practices and discrimination. The advisory sets out the Department’s expectations for how insurers will manage the use of certain artificial intelligence technologies and provides recommendations to insurers on the types of data and documentation the Department may require in investigations involving the use of artificial intelligence.
pennsylvania The requirement for prelicensure education credits for resident license holders is being eliminated. The state also added updated ethics and flood requirements. Starting April 29, 2025, all licensed producers in the state will need at least 3 of their 24 CE credits to cover ethics and at least 2 credits to cover flood insurance.
Vermont Implement a new transaction type to deal with Designated Responsible Licensed Producers (DRLPs). Effective November 15, 2024, transaction type code 17 will represent DRLP. You can find a review of DRLP responsibilities and best practices here.
Stay on top of regulatory changes with AgentSync
While these points of interest are not comprehensive, our understanding of insurance producer and variable lines broker licensing and compliance maintenance is. Learn how AgentSync can help you look smarter today; head to the Compliance Library to learn about some interstate regulations and more jurisdictional updates. If you’re looking for a solution to automatically build this type of regulation into your distribution channel management workflow, AgentSync can help. Come see us in action or talk to one of our experts today.
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