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Insurance RegulatorFourth Quarter 2005ADOI MissionStatementEDTo faithfullyexecute stateinsurance lawsin a mannerthat elopment.Inside thisissue:Compliance Update: 2Provider Timely PayTRIA3ADOI Phones3Fraud Report4New P&C Assistant 4DirectorLegislative Report5Around ADOI6Regulatory Actions7State of ArizonaJanet NapolitanoDEPARTMENT OFINSURANCEChristina UriasGovernorDirectorFrom the Director Wildfire PreparationThe potential for wildfire in Arizona isextreme this year.This threat ofwildfires serves as a timely reminderfor Arizonans to review theirhomeowners and business insurancepolicies to ensure sufficient coveragefor property and belongings in theevent of loss or damage. In addition,Arizonans are being encouraged totake proactive steps to prepare for andprevent wildfire, including: Clear a defensible space aroundyour house (30’ recommended),especially if you live in or near wildland. Remove vegetativedebris,prunebushes and trees,and clear your roofand gutters. Updateyourfamily’s emergencyplan—what wouldyou take if you hadonehourtoevacuate, who isyour family’s centralcontact person?you home are on record, particularly ifyou have remodeled or upgraded anyaspect of your home recently.The Insurance Department has foundthat many insurance companies hadinadequate methods for accuratelyestimating customers’ dwellingcoverage. We are working with theinsurance industry to establish newpolicies and procedures to increasethe accuracy of their coverageestimations and to improve theircommunication with customers.Inparticular, insurers agreed to: (a) issueregular, periodic inquiries to theirLearn more!Disaster Preparedness:Arizona 2-1-1 Online, www.az211.govFirewise, www.firewise.orgInstitute for Business and Home Safety, www.ibhs.orgArizona Red Cross, www.arizonaredcross.orgInsurance Preparedness:AZ Dept of Insurance - www.id.state.az.usHome Inventory tool - www.knowyourstuff.orgAZ Insurance Information Association, www.azinsurance.orgNational Flood Insurance Program, www.floodsmart.gov Inventory your personal belongings;store the inventory away from homeor email it to a family member! And, of course, get an insurancecheck up to evaluate the adequacyof your homeowners’ insurance.Personal insurance is the primarysource of recovery after a fire, sohomeowners are encouraged to calltheir insurance agent or company to besure the most current characteristics ofcustomers to verify currentconstruction features and/orimprovements to the dwelling; and, (b)re-calculate and adjust the policy limitsof insureds who respond with newinformation that affects thereplacement cost of their home.But homeowners should not wait fortheir insurer to contact them--call yourcompany or agent today to request acheck up.
Insurance Regulator 4th Quarter 2005Page 2Compliance Update: Timely Pay &Grievance LawSTATE OF ARIZONAThe InsuranceRegulatoris published by theArizonaDepartment ofInsurance2910 N. 44th Street,Ste. 210Phoenix, AZ 85018602-364-3100www.id.state.az.usOn January 20, 2006 the Insurance Director, Christina Urias, issuedRegulatory Bulletin 2006-02 regarding Arizona’s health care providerTimely Payment & Grievance Law (A.R.S. §§ 20-3101 and 3102). Effectivesince January 1, 2001, the Timely Pay & Grievance Law was the subject ofthe Department’s November 9, 2000 Circular Letter 2000-15 and the 2005legislative amendments in HB 2138.Regulatory Bulletin 2006-02: (a) supersedes and withdraws Circular Letter2000-15; (b) provides a review of the Department’s implementation of theoriginal law and the new amendments; (c) clarifies interpretation of theoriginal law since its January 1, 2001 effective date; and, (d) revises the listof grievance types subject to reporting.In particular, Regulatory Bulletin 2006-02 clarifies the effective dates ofvarious provisions in the Timely Pay & Grievance Law, as follows: Janet Napolitano Governor Christina UriasDirectorErin H. Klug Public Information OfficerAmendments relating to claims-processing (ARS §§ 20-3102 (A) to (E))apply to claims for dates of service on, or after, January 1, 2006.Amendments relating to provider grievances (ARS § 20-3102(F)) applyto grievances that an insurer receives on, or after, January 1, 2006.Amendments relating to payment adjustments (ARS § 20-3102(I)) applyto payments or denials that an insurer makes on or after January 1,2006.Amendments relating to the change of filing locations (ARS § 20-3102(K)) applies to claims or grievances that an insurer receives on or afterJanuary 1, 2006.Regulatory Bulletin 2006-02 also establishes important timelines forprovider grievances: February 15, 2006: Deadline for notifying the Department of theinsurer’s designated primary contact person for handling providergrievances.February 15, 2006: Deadline for notifying the Department of all thelocations or addresses to which, as of that date, it directs providers tosend their grievances.April 1, 2007: Insurers filing semi-annual provider grievance reportsdue on this day must use the grievance types and report specificationsset forth in Regulatory Bulletin 2006-02. Until then, insurers maycontinue to use the Circular Letter 2000-15 grievance types and reportspecifications.You can review the entire Bulletin at http://www.id.state.az.us/bulletin/200602.pdf. Please address questions regarding this Regulatory Bulletin toAudrey Franklin, Timely Pay & Grievance Analyst, at 602-364-2394 [email protected] or [email protected].
Insurance Regulator 4th Quarter 2005Page 3TRIADue to the uncertainty in thecommercial lines propertyand casualty insurance andreinsurance markets as aresult of the substantial industry losses on September11, 2001, Congress enactedand the President signed theTerrorism Risk InsuranceAct of 2002 (“Act”), to provide a temporary federalbackstop to calm marketfears over future terroristattacks. Congress and thePresident recently revisedand extended the Act for ana d di ti o n al t w o ye a rs(through December 31,2007) with the enactment ofthe Terrorism Risk Insurance Extension Act of 2005(“Extension Act”).Subsequent to the passageof the Extension Act, theADOI withdrew RegulatoryBulletin 2004-3 and replacedit with Bulletin 2006-3. Thenew Bulletin: Describes changes in theExtension Act. Includesclarification ofcertified and non-certifiedlosses. Advises insurers and rat-ing organizations of certain provisions of the Extension Act that may require them to submit a filing of disclosure notices,policy language and theapplicable rates, although,in many cases, insurers'current filings will be adequate.insurance. Explains the optional pro-vision for the StandardFire Policy.Bulletin 2006-03 took effecton January 26, 2006 and willexpire on December 31,2007, unless Congress further extends the duration ofthe Extension Act. You canreview Bulletin 2006-03 lease direct questions related to this Regulatory Bulletin to Dean Ehler, Assistant Director, Property &Casualty Division via email([email protected]) ortelephone (602-364-3453). Describes the effect theExtension Act has onworkers’ compensationNEW PHONE NUMBERSThe ADOI has completed its transition to a new phone system with new phonenumbers. We apologize for any difficulties callers may have encountered in thelast few weeks and ask for your patience while we become increasingly familiarwith the new system. The Phoenix phone numbers are summarized here:Consumers:602.364.2499Consumers - Spanish:602.364.2977Health Care Appeals:602.364.2399Insurance Fraud:602.912.8418Life/Health Filings:602.364.2393Health Provider Hotline: 602.364.2395Producer Licensing:602.364.4457Property/Casualty Filings: 602.364.3453If you encounter difficulty reaching a particular division:Main Switchboard:602.364.3100
Insurance Regulator 4th Quarter 2005Page 4Regulator Profile: Dean EhlerDean Ehler is the new Assistant Director of the ADOI Property& Casualty Division. Dean started at the Department in 1991,during which time he was a Market Conduct examiner, a rateexaminer and, most recently, Property & Casualty Division Supervisor. Dean has a business administration degree fromASU and has been a CPCU (Chartered Property & CasualtyUnderwriter) since 1989. Prior to his employment with theADOI, Dean had 13 years of experience as a commercial senior underwriter with Unigard Insurance Group.Dean’s excellent skills, background and vast knowledge of theDivision after years of working closely with Deloris Williamson,made him ideally suited to assume the role of Assistant Director of the P & C Division.Fraud ReportAuto Glass Repair FraudConferenceOn December 7, 2005, the Arizona Departmentof Insurance (ADOI) Fraud Unit joined the National Insurance Crime Bureau (NICB), the Arizona Auto Theft Investigators Association, theArizona Association of Special InvestigativeUnits, and the Mesa Police Department in presenting a seminar on Auto Glass Repair Fraudat the Mesa Police Department Auditorium.Special Agent Steve King of the NICB gave apresentation on Date Coding that included important techniques used to interpret the codingon auto glass to determine the type, date andmanufacturing origin of the glass; all importantbenefits to investigators involved in auto theftand insurance fraud investigations.Also making a presentation on auto glass repairscams, Gary Gifford, owner of Maverick GlassCompany and President and Founder of the Arizona Auto Glass Association, provided examples and demonstrations on chip repairs, themechanics of repairing auto glass, repair v. replacement considerations and a demonstrationon how to determine if any chip repairs were actually done. He works closely with insuranceindustry investigators, the NICB and ADOI, training and exposing auto glass fraud in the State ofArizona. The Channel 5 News Team recordedMr. Gifford’s presentation as a follow-up to theirongoing efforts to report insurance fraud issuesin Arizona.Insurance industry representatives, Fraud Unitpersonnel and valley law enforcement officersattended and donated one non-perishable fooditem per person to the United Food Bank as anadmission fee for the presentation.
Insurance Regulator 4th Quarter 2005Page 5Legislative ReportThe ADOI did not pursue any legislation inthe 2006 legislative session. The following isa brief summary of some of the insurancerelated bills under consideration at thelegislature.for small employers (2-24 employees) thatprovide or begin to provide insurance to theiremployees.Credit Scoring: HB 2160 and HB 2161would alter AZ’s current provisions governinginsurer’s use of credit scoring in underwriting.HB 2160 would continue to allow the use ofcredit scoring, but would further define itsuse. For instance, if an insurer were to “takean adverse action against an individual basedon credit information” the insurer would berequired to use a credit report or an insurancescore that was calculated within 90 days fromthe date the policy was initially written orrenewed. HB 2161 prohibits the use of creditscoring to “underwrite, classify or rateinsurance ions for consumers in the purchase ofor the exchange of an annuity. The insurer orproducer must “have reasonable grounds forbelieving that the recommendation is suitablefor the consumer on the basis of the factsdisclosed by the consumer as to theconsumer’s investments and other insuranceproducts and as to the consumer’s financialsituation and needs.” The bill also grants thedirector the authority to order correctiveaction and to administer the applicablepenalties for violations.Health Insurance:SB 1288 would reduce the premium tax onlife insurers from 2% to 1% over four years,and reduce the premium tax for property andcasualty insurers from 2% to 1.75% over fouryears (calendar 2007 to calendar 2010). DOIestimates the reduction in revenue to theGeneral Fund to be 18 million in 2007,building to nearly 45 million in 2010 --- atotal of approximately 123 million over thosefour years.Several pieces of legislation seek to addressthe availability of and the cost of healthinsurance in Arizona.HB 2658 wouldestablish a high risk insurance pool forArizonans who have been denied coveragedue to their health status at least twice.Those eligible for insurance under HIPAAwould also be included in the pool. Enrolleeswould pay a premium exceeding the standardmarket rate, with the remainder of pool costsand claims paid for by the state from premiumtax revenues.HB 2698 would allow small businesses thathave not offered insurance to their employeesfor at least 6 months to purchase a healthplan that would be exempt from a number ofstate coverage mandates. HB 2177 wouldallow insurers a premium tax credit for thequalified health insurance coverage providedto an individual or small business.Inexchange, the insurer would deduct thisamount from the premium charged to theindividual or the small business.SB 1467 creates a tax credit of up to 1,000Annuities:Premium Tax Reduction:Other bills of note include a change toeligibility requirements for licensure as a bailbond agent (SB 1188); an amendment to thestatute of limitations for uninsured andunderinsured motorists claims (HB 2164); andlegislation removing the 75% participationrequirement for several types of group lifeinsurance (SB 1070).The ADOI strongly encourages thoseintending to offer insurance related legislationto afford ADOI an opportunity for technicalreview and an analysis of resource impacts.All legislative matters should be directed toKarlene Wenz, Executive Assistant for PolicyAffairs, [email protected].
Insurance Regulator 4th QuarterPage 6AROUND ADOIProperty & CasualtyMarket Monitoring SurveysThe ADOI actively monitors thepropertyandcasualty(P&C)marketplace to verify the existenceof competition and the availabilityand affordability of certain P&Cinsurance products in Arizona.This program includes eight P&Cadmittedmarkets:suretycommercial automobile, personallines automobile (includes the 2 n deditionpremiumcomparison),homeowners (includes homeownersand mobile homeowners premiumcomparisons) malpractice, nursinghome liability, other liability andbusinessowners.The majority of these surveys weremailed out in mid-February, and,the ADOI requests that insurersreceiving these surveys completeand return them by the indicateddeadlines.Property and Casualty Rate and FormFiling Exemptions; Commercial NonCancellation Restriction Exemptions;Recognized Surplus LinesOn October 19, 2005, ADOI held ahearing to receive public commenton whether to revise: (a) the orderto exempt certain property andcasualty rate and form filingrequirements subject to A.R.S.Title 20, Chapter 2, Article 4.1; (b)the types of policies exempted fromthe provisions of A.R.S. Title 20,Article 14, Chapter 6: and, (c) therecognized surplus lines list basedon A.R.S. Title 20, Chapter 2, Article5.ADOI Docket Order No. 05A-108-INS,filed October 21, 2005, contains therevisions made to these items. Priorto submitting any filings or placing anysurplus lines business, P&C rate andform filers and brokers should reviewthis Order on the ADOI web site,www.id.state.az.us.Consumer AffairsMedicare Supplement PremiumComparisonThe2006MedicareSupplementPremium Comparison is now availableon line and in print from the ADOIConsumer Affairs Division.Consumer AssistanceIn the last 12 months, staff from theADOI Consumer Affairs Division haveassisted Arizona citizens in theirefforts to recover nearly 6 million inclaim payments, premium refunds, andpolicy restorations. Complaints to theADOI relate to all types of andevenpetinsurance.
Insurance Regulator 4th Quarter 2005Page 7Regulatory ActivityCOMPANY ACTIONSNEW LICENSES ISSUEDDomestic CompaniesNAIC #EffectiveDateType1. CART CAPTIVE ASSURANCE COMPANY, INC.N/A12/19/05Captive Insurer2. FAIRWAY INSURANCE, INC.N/A12/19/05Captive Insurer1232011/22/05Risk Retention Group4. MERIDIAN INSURANCE CORPORATIONN/A12/19/05Captive Insurer5. SCOTTSDALE CAPTIVE INSURANCE COMPANYN/A11/17/05Captive Insurer6. UNION CAPTIVE INSURANCE, INC.N/A11/21/05Captive InsurerCompany Name3. INNOVATIVE PHYSICIAN SOLUTIONS, A RISK RETENTIONGROUPForeign CompaniesCompany NameState ofEffectiveDomicile NAIC # DateType1. AMERICAN SOUTHERN HOME INSURANCE COMPANYFL41998 12/21/05 Property & Casualty Insurer2. AMERICAN STERLING INSURANCE COMPANYCA40800 10/13/05 Property & Casualty Insurer3. BUCKEYE STATE MUTUAL INSURANCE COMPANY, THEOH167134. CASUALTY UNDERWRITERS INSURANCE COMPANYUT26697 11/10/05 Property & Casualty Insurer5. CICA LIFE INSURANCE COMPANY OF AMERICACO71463 12/20/05Life & Disability Insurer6. GUARANTEE TITLE AND TRUST COMPANY, THEOH50180 10/17/05Title Insurer7. HSBC INSURANCE COMPANY OF DELAWAREDE28657 12/19/05 Property & Casualty Insurer8. MEMIC INDEMNITY COMPANYNH11030 10/20/059. PENNSYLVANIA LUMBERMENS MUTUAL INSURANCECOMPANYPA14974 11/29/05 Property & Casualty Insurer10. SECURIAN CASUALTY COMPANYMN10054 10/17/05 Property & Casualty Insurer11. SUMMERLIN LIFE AND HEALTH INSURANCE COMPANYNV1183811/3/0512/8/05Property & Casualty InsurerCasualty InsurerLife & Disability Insurer
Page 8Insurance Regulator 4th Quarter 200512. UNITED AGRICULTURAL EMPLOYEE WELFARE BENEFITTRUST (dba) UNITED AGRICULTURAL BENEFIT TRUSTCA13. USPLATE GLASS INSURANCE COMPANYIL14. WESTERN GROWERS ASSURANCE TRUSTCAN/A12/20/0528497 12/21/05N/A10/12/05Life & Disability InsurerCertificate of ExemptionCasualty InsurerLife & Disability InsurerCertificate of ExemptionRisk Retention Groups RegisteredState ofDomicileNAIC #EffectiveDate1. CHC CASUALTY RISK RETENTION GROUP, INC.VT1153110/21/052. PEDIATRICIANS INSURANCE RISK RETENTION GROUP OF AMERICA, INC.DC1177212/22/053. PHYSICIANS COMPLIANCE LIABILITY INSURANCE COMPANY, A RISKRETENTION GROUPNV1235011/28/054. SYNERGY INSURANCE COMPANY, INC., A RISK RETENTION GROUPNV1234911/28/05Company NameService Company Permits (A.R.S. 20-1095, et seq.)State ofDomicileEffectiveDate1. AUTOGUARD ADVANTAGE CORPORATIONOH11/2/052. PHOENIX AMERICAN WARRANTY COMPANY, INC.FL11/7/053. HOME BUYERS RESALE WARRANTY CORPORATIONMI12/31/054. UNITED STATES WARRANTY E.S.P. CORPORATIONOH12/31/05State ofDomicileEffectiveDateCompany NameThird Party Administrators (TPA)Company Name1.ACS HEALTH ADMINISTRATION DBA REWARDS ADMINISTRATIONCENTERDE11/28/052.ASRM, LLCNJ10/25/053.CREATIVE BENEFITS, INC.CA10/3/054.PACIFIC A&M LTD., INC.CA12/22/055.RGA TECHNOLOGY PARTNERS, INCMO11/16/056.SE2, INC.KS11/21/057.TRIANGLE ADMINISTRATORS INCORPORATEDAZ12/15/058.WM. MICHAEL STEMLER, INC. DBA DELTA HEALTH SYSTEMSCA12/14/05
Page 9Insurance Regulator 4th Quarter 2005Utilization Review AgentsState ofDomicileCompany NameEffectiveDateNO ACTIVITYCHANGE OF AUTHORITYState ofDomicileNAIC #EffectiveDate1. EXPRESS SCRIPTS INSURANCE COMPANYAZ6002512/7/05Converted from a Life &Disability ReInsurer to aDisability Insurer2. ROSKAMP/SUN HEALTH COLONNADE, LLPAZN/A11/29/05Granted Life Care ProviderPermit3. RURAL COMMUNITY INSURANCE COMPANYMN3903910/17/05Granted Casualty WithoutWorkers’ Compensation,Vehicle, Marine &Transportation4. VANLINER INSURANCE COMPANYMO2117211/01/05Terminated Disability & SuretyCompany NameChangeNAME CHANGESOld Name(to) New NameState ofEffectiveDomicile NAIC #Date1.FS TENANT POOL II TRUST (dba) FORUM AT PUEBLO NORTE, THE(to) FS TENANT POOL II TRUST (dba) PUEBLO NORTE SENIOR LIVING COMMUNITYMDN/A12/12/052.GE RESIDENTIAL MORTGAGE INSURANCE CORPORATION OF NORTH CAROLINA(to) GENWORTH RESIDENTIAL MORTGAGE INSURANCE CORPORATION OFNORTH CAROLINANC2982311/1/053.GENERAL ELECTRIC HOME EQUITY INSURANCE CORPORATION OF NORTH CAROLINA(to) GENWORTH HOME EQUITY INSURANCE CORPORATIONNC4143211/1/054.GENERAL ELECTRIC MORTGAGE INSURANCE CORPORATION(to) GENWORTH MORTGAGE INSURANCE CORPORATIONNC3845811/1/055.GENERAL ELECTRIC MORTGAGE INSURANCE CORPORATION OF NORTH CAROLINA(to) GENWORTH MORTGAGE INSURANCE CORPORATION OF NORTH CAROLINANC1667511/1/056.GLOBAL ONE CAPTIVE INSURANCE COMPANY(to) GLOBAL ONE INSURANCE COMPANYAZN/A10/3/057.UNITED COASTAL INSURANCE COMPANY(to) ROCKHILL INSURANCE COMPANYAZ2805311/22/05ARIZONA REDOMESTICATIONSCompany NameNAIC #Effective DateFromState of DomicileTo1. EVEREST NATIONAL INSURANCE COMPANY1012011/30/05AZDE2. VANLINER INSURANCE COMPANY2117211/1/05AZMO
Page 10Insurance Regulator 4th Quarter 2005ACQUISITIONS/MERGERS/WITHDRAWALSAcquisitions of Arizona CompaniesCompany NameNAIC #Date OrderFiled1.OLD WEST ANNUITY & LIFE INSURANCECOMPANY7679112/19/05GREAT AMERICAN INSURANCECOMPANY, GREAT AMERICAN FINANCIALRESOURCES, INC., AAG HOLDINGCOMPANY, INC. & GREAT AMERICAN LIFEINSURANCE COMPANY2.PACIFICARE OF ARIZONA, INC.9561711/14/05UNITED HEALTH GROUP, INC.3.UNITED COASTAL INSURANCE COMPANY2805311/17/05ROCKHILL HOLDING COMPANY,HBK MASTER FUND, L.P.,HBK MAIN STREET INVESTMENTS, L.P.,NORTHAVEN PARTNERS, L.P.,NORTHAVEN PARTNERS II, L.P.,NORTHAVEN PARTNERS III, L.P. &NORTH HAVEN OFFSHORE, LTD.Acquired ByMergers involving Arizona CompaniesCompany NameMerged IntoState ofDomicileNAIC #Date OrderFiled1. MHN REINSURANCE COMPANY OF ARIZONA(Into) HEALTH NET LIFE INSURANCE COMPANYAZCA894296614112/23/052. SOUTHERN FOUNDATION LIFE INSURANCE COMPANY(Into) RISK ASSOCIATES LIFE INSURANCECOMPANYAZAZN/AN/A12/23/053. UNITED DENTAL CARE INSURANCE COMPANY(Into) UNION SECURITY INSURANCE COMPANYAZIA978707040810/21/05State ofDomicileNAIC #Date OrderFiled1. AMERICAN STATES LIFE INSURANCE COMPANYIN6087911/18/052. AMERICAN VANGUARD LIFE INSURANCE COMPANYIA9731412/23/053. FIRSTMERIT CREDIT LIFE INSURANCE COMPANYAZ7248612/16/054. GULF INSURANCE COMPANYCT2221711/18/055. LONG LIFE INSURANCE COMPANYAZ7404711/10/056. MENAPACHE LIFE INSURANCE COMPANYAZN/A12/14/057. OAKFIRST LIFE INSURANCE CORPORATIONAZN/A11/8/058. PACIFIC SELECT PROPERTY INSURANCE COMPANYCA1088712/23/059. PRIMEGUARD INSURANCE COMPANY, INC., A RISKRETENTION GROUPHI1089310/20/0510. PROFESSIONAL LIFE & ANNUITY INSURANCE COMPANYAZ9224012/20/0511. SENATE INSURANCE COMPANYAZ7362812/23/05Withdrawals from ArizonaCompany Name
Insurance Regulator 4th Quarter 2005Page 1112. SEQUOIA CAPTIVE INSURANCE, INC.AZN/A11/23/0513. STEWARD RISK RETENTION GROUPDC1196111/01/0514. SUSQUE-BANCSHARES LIFE INSURANCE COMPANYAZN/A12/23/0515. TRANSAMERICA LIFE INSURANCE AND SHIPSState ofDomicileCompany NameNAIC #EffectiveDateActionTakenNO ACTIVITYFINANCIAL EXAM REPORTSCompany NameDateReport FiledNAIC #NO ACTIVITYTARGETED MARKET EXAMINATIONS - Includes 3rd Quarter2005 ExamsCompany NameFindingsState ofDomicileNAIC #DateFiledCivilPenaltyCA250897/15/05 37,000.00 050WI1927510/07/0500IL2381710/24/0500Restitution InterestCOAST NATIONAL INSURANCE COMPANY1. Failure to provide Summary of Rights. Claimforms failed to contain fraud warning notice.Improper cancellation procedures.HARTFORD INSURANCE COMPANY OF THEMIDWEST2.Company procedures appear to be incompliance with A.R.S. §20-1632.01.PROPERTY AND CASUALTY I.C. OFHARTFORD3.Company agreed to implement periodic reviewof Homeowners policy limits.COUNTRY MUTUAL INSURANCE COMPANY4. Company agreed to implement periodic reviewof Homeowners policy limits.5.AMERICAN FAMILY MUTUAL INSURANCECOMPANY0Company agreed to implement periodic reviewof Homeowners policy limits.ILLINOIS NATIONAL INSURANCE COMPANY6. Company procedures appear to be incompliance with A.R.S. §20-1632.01.
Insurance Regulator 4th Quarter 20057.AMERICAN INTERNATIONAL SOUTHINSURANCE COMPANYPage 0500CT3010411/02/0500MI1118511/08/05 15,000.00 1/09/05 20,000.00 22/0500WI4299411/22/0500Company procedures appear to be incompliance with A.R.S. §20-1632.01.LIBERTY MUTUAL FIRE INSURANCE CO.8. Company procedures appear to be incompliance with A.R.S. §20-1632.01.9.LM PROPERTY AND CASUALTY INSURANCECOMPANYCompany procedures appear to be incompliance with A.R.S. §20-1632.01.FEDERAL INSURANCE COMPANY10. Company procedures appear to be incompliance with A.R.S. §20-1632.01.11.HARTFORD INSURANCE COMPANY OF THEMIDWESTCompany procedures appear to be incompliance with A.R.S. §20-1632.01.ANCHOR GENERAL INSURANCE COMPANY12. Company procedures appear to be incompliance with A.R.S. §20-1632.01.13.HARTFORD UNDERWRITERS INSURANCECOMPANYCompany procedures appear to be incompliance with A.R.S. §20-1632.01.FOREMOST I. C. OF GRAND RAPIDS, MI14. Failure to pay correct amount of ACV, taxes,license fees, and/or interest due to total lossclaimants. Use of non-compliant claim forms.PHOENIX INDEMNITY INSURANCE CO.15. Company procedures appear to be incompliance with A.R.S. §20-1632.01.16.AMERICAN INTERNATIONAL INSURANCECOMPANYCompany procedures appear to be incompliance with A.R.S. §20-1632.01.AUSTIN MUTUAL INSURANCE COMPANYFailure to provide Summary of Rights. Failure to17. offer Named Driver Exclusion. Claim formsfailed to contain a compliant fraud warningnotice.CENTRAL MUTUAL INSURANCE COMPANY18. Company procedures appear to be incompliance with A.R.S. §20-1632.01.19.PROGRESSIVE PALOVERDE INSURANCECOMPANYCompany procedures appear to be incompliance with A.R.S. §20-1632.01.20.PROGRESSIVE CASUALTY INSURANCECOMPANYCompany procedures appear to be incompliance with A.R.S. §20-1632.01.21.PROGRESSIVE CLASSIC INSURANCECOMPANYCompany procedures appear to be incompliance with A.R.S. §20-1632.01.
Insurance Regulator 4th Quarter 2005WESTERN AGRICULTURAL INSURANCECOMPANYPage 0500WA2474011/30/0500WI2116412/09/0500SENTRY INSURANCE, A MUTUAL COMPANY30. Company procedures appear to be incompliance with A.R.S. §20-1632.01.WI2498812/09/0500FINANCIAL INDEMNITY COMPANY31 Company procedures appear to be incompliance with A.R.S. §20-1632.01.CA1985212/12/0500SAFEWAY INSURANCE COMPANY32. Company procedures appear to be incompliance with A.R.S. §20-1632.01.IL1252112/13/0500IL6142512/14/05 12,000.00 3,600.00PA3921712/14/05 40,0000ALLSTATE INSURANCE COMPANY35. Company agreed to implement periodic reviewof Homeowners policy limits.IL1923212/19/0500Allstate Indemnity Company36. Company agreed to implement periodic reviewof Homeowners policy limits.IL1924012/19/050022.Company procedures appear to be incompliance with A.R.S. §20-1632.01.23.AMERICAN STANDARD INSURANCECOMPANY OF WICompany procedures appear to be incompliance with A.R.S. §20-1632.01.24.AMERICAN FAMILY MUTUAL INSURANCECOMPANYCompany procedures appear to be incompliance with A.R.S. §20-1632.01.25.FARMERS INSURANCE COMPANY OFARIZONACompany agreed to implement periodic reviewof Homeowners policy limits.26.CALIFORNIA CASUALTY INDEMNITYEXCHANGECompany procedures appear to be incompliance with A.R.S. §20-1632.01.27.CALIFORNIA CASUALTY INSURANCECOMPANYCompany procedures appear to be incompliance with A.R.S. §20-1632.01.28.SAFECO INSURANCE COMPANY OFAMERICACompany procedures appear to be incompliance with A.R.S. §20-1632.01.DAIRYLAND INSURANCE COMPANY29. Company procedures appear to be incompliance with A.R.S. §20-1632.01.TRUSTMARK INSURANCE COMPANY33. Improperly limited benefits payable for spinaltreatment services in violation of A.R.S. §20461(A)(17)&(B)QBE INSURANCE CORPORATIONFailure to provide Summary of Rights. Claim34. forms failed to contain fraud warning notice.Failure to pay correct amount of ACV, taxes andlicense fees due in total loss settlements.Improper non-renewal procedures.
Insurance Regulator 4th Quarter 2005Page 14SUSPENSIONS/REINSTATEMENTSState ofDomicileCompany NameNAIC #EffectiveDateActionNO ACTIVITYOTHER DISCIPLINARY ACTIONSCompany NameThe Western and Southern LifeInsurance CompanyState ofDomicileNAIC #EffectiveDateOH7048312/15/05ActionConsent Order; Race-basedunderwriting relating to the sale ofindustrial life and certain other lifeinsurance policies. This orderadopts a Multi-State RegulatorySettlement Agreement.PRODUCERS AND OTHER LICENSEES DISCIPLINEDCause No.NameCity – State1. 05A-103Leonard John Mikosz andBiltmore Financial Planning,Ltd.AllegationDispositionImproperly withheld, misappropriated or converted any moniesor properties received in the course of doing insurancebusiness; admitted to committing any insurance unfair tradepractice or fraud.10/11/05 Consent OrderUsed fraudulent, coercive or dishonest practices, ordemonstrated incompetence, untrustworthiness or financialirresponsibility in the conduct of business in this state orelsewhere; improperly withheld, misappropriated or convertedany monies or properties received in the course of doinginsurance business.10/25/05 Consent OrderImproperly withheld, misappropriated or converted any moniesor properties received in the course of doing insurancebusiness; demonstrated incompetence, untrustworthiness orfinancial irresponsibility in the conduct of business in this stateor elsewhere; failed to maintain a place of business in this stateaccessible to the public, keep a daily bond register, andmaintain records; failed to maintain complete bail bond businessrecords; failed to maintain collateral in a fiduciary capacity,failed to immediately return collateral to the indemnitor, andfailed to return excess collateral to the indemnitor.11/4/05 Consent OrderLicenses RevokedChandler, AZ2. 05A-149Julia Suzanne LandesLakeside, AZ3. 05A-085James Sterling Allred dbaEastern Arizona Bail BondsSmyrna, TN4. 05A-106Bernardo Besario SalibayPhoenix, AZ5. 05A-168Michael Rojas VasquezCoolidge, AZPrior felony conviction in the State of Arizona; failure to notifythe Department of his current address within 30 days; failure toreport criminal convictions and the revocation of his NursingAssistant Certificate to the Department within 30 days.Prior felony conviction in the State of Arizona. Providedincorrect, misleading, incomplete or materially untrueinformation in
Auto Glass Repair Fraud Conference On December 7, 2005, the Arizona Department . benefits to investigators involved in auto theft and insurance fraud investigations. Also making a presentation on auto glass repair scams, Gary Gifford, owner of Maverick Glass . ior underwriter with Unig
