2016 Annual Report

Commonwealth of Massachusetts Division of Insurance

2016 Annual Report

Table of Contents

1. Division of Insurance ........................................................................................... 1 Mission ................................................................................................................... 1 Primary Activities .................................................................................................... 1 Organizational Chart ............................................................................................... 3 Human Resources .................................................................................................. 4 Budget, Revenue & Assessments .......................................................................... 5 The Massachusetts Insurance Marketplace ........................................................... 9

2. Financial Surveillance & Company Licensing ................................................... 11 3. Financial Examinations ........................................................................................ 17 4. Market Conduct .................................................................................................... 23 5. Producer Licensing .............................................................................................. 26 6. State Rating Bureau ............................................................................................. 30

Private Passenger Automobile ............................................................................... 32 Home Insurance ..................................................................................................... 35 Workers' Compensation Insurance ........................................................................ 39 Medical Malpractice Insurance ............................................................................... 41 Credit Insurance ..................................................................................................... 42 Life Insurance ......................................................................................................... 43 7. Policy Form Review ............................................................................................. 44 8. Bureau of Managed Care ..................................................................................... 45 9. Health Care Access Bureau ................................................................................ 47 10. Office of General Counsel ................................................................................... 49 11. Special Investigations .......................................................................................... 54 12. Board of Appeal .................................................................................................... 56 13. Automobile Damage Appraiser Licensing Board .............................................. 61 14. Consumer Services .............................................................................................. 62 15. Administration ...................................................................................................... 65 Appendix A: Acts, Regulations & Bulletins ................................................................ A-1 Appendix B: Select 2016 Financial Information from Massachusetts Domestic Insurance Companies ......................................................................... B-1 Appendix C: 2016 Direct Written Premium by Line of Insurance ............................. C-1

Division of Insurance 2016 Annual Report 1

1 - Division of Insurance

The Division of Insurance ("Division") administers the laws of the Commonwealth as they pertain to the protection of the insurance consumer through the regulation of the insurance industry. The Division monitors financial solvency, licenses insurance companies and producers, reviews and approves rates and forms, and coordinates the rehabilitation of financially troubled companies and the takeover and liquidation of insolvent insurance companies. The Division also investigates and responds to consumer inquiries and complaints and enforces state laws and regulations pertaining to insurance. The Division provides the public with information regarding various types of insurance through its website and assorted publications. 1.1 Mission The primary mission of the Division is to monitor the solvency of its licensees in order to promote a healthy, responsive and willing marketplace for consumers who purchase insurance products. Protection of consumer interests is of prime importance. The Division safeguards these interests by providing accurate and unbiased information so consumers may make informed decisions and by intervening on behalf of consumers who believe they have been victimized by unfair business practices. 1.2 Primary Activities The Division protects consumers and promotes a fiscally sound insurance marketplace through the performance of six primary activities. Taken together, these activities represent the core of effective insurance regulation.

1 ? Division of Insurance

Division of Insurance 2016 Annual Report 2

License Insurance Companies (CL)

The process of licensing insurance companies promotes a marketplace of solvent, fiscally sound companies through the review and analysis of filings and financial statements.

Examine the Financial Condition of Insurance Companies (F)

The Division monitors the financial condition of insurance companies through quarterly financial analyses. This process provides an early warning of possible financial problems so that appropriate regulatory action can be taken before the extreme situation of insolvency. The monitoring process also includes periodic on-site financial examinations of all domestic companies to value assets, determine liabilities and verify compliance with applicable statutes and regulations.

Examine the Market Conduct of Insurance Companies (MC)

Beyond the financial health of an insurer, the Division also examines how the company interacts with policyholders and potential customers. The market conduct process looks beyond the financial condition of a company and examines business practices, such as policy underwriting and rating practices, cancellations and non-renewals, claim settlements, original insurance applications, and advertising materials. The goal of these examinations is to confirm that Massachusetts consumers are treated with fairness and according to the terms of insurance contracts.

Regulate Insurance Policy Forms, Rates and Programs (SRB)

By reviewing and approving insurance policy forms, rules, rates, and associated program procedures and operations, the Division verifies that insurance products sold to Massachusetts consumers by licensed insurance companies comply with the laws and regulations of the Commonwealth.

License Insurance Producers and Others (PL)

The process of licensing insurance producers and other key participants in the insurance industry allows the Division to promote a marketplace where individuals and firms engaging in the business of insurance are qualified and are conducting business in compliance with the laws and regulations of the Commonwealth.

Investigate Insurance Consumer Complaints (CS)

The Division provides insurance consumers with a non-judicial alternative for pursuing complaints against insurance companies and insurance producers by investigating consumer complaints within its jurisdiction and consistent with Massachusetts law.

1 ? Division of Insurance

Division of Insurance 2016 Annual Report 3

1.3 Organizational Chart (as of 12-31-2016)

Commissioner of Insurance Daniel R. Judson

First Deputy Commissioner Gary D. Anderson

Deputy Commissioner, Health Care Access Bureau

Kevin Beagan

State Rating Bureau Matthew Mancini Director

Policy Form Review Section Sheri Cullen Director

Bureau of Managed Care Tracey McMillan Director

Deputy Commissioner, Financial & Market Regulation,

John Turchi

Financial Surveillance & Company Licensing Robert Macullar Director

Producer Licensing Unit D. Silverman-Black Director

Financial Examinations James McCarthy Director

Deputy Commissioner, General Counsel Rachel Davison

Director, Administration Dorothy Raymond

Legal Division, Christopher M. Joyce Deputy General Counsel

Market Conduct Review Richard Bradley Director

Special Investigations Unit Scott Peary

Chief Enforcement Counsel

Consumer Services Unit Alicia Furbush Director

Board of Appeal, Kimberly Foster

Chair

Consumer Services Unit Alicia Furbush, Director

1 ? Division of Insurance

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download