Sarah Parker wrote me, forwarding a fast studying weblog, Liberty Mutual to Refund $7.7 Million in Consent Order: What Minnesota Policyholders Must Know. I consider she despatched it to me due to my current submit, Liberty, Liberty, Li-ber-ty.  

One of many necessary factors of her submit was the complexity of many massive insurance coverage organizations, which many suppose are only one firm beneath one model: 

To most of the people, they may solely see a major commerce title because the model providing their insurance coverage coverage. Nevertheless, behind the scenes, the precise phrases of their coverage, the charges they’re provided, and the regulatory compliance behind that coverage is likely to be managed by a subsidiary.

The naming of a number of firms in such orders underscores the complexity of huge companies and the regulatory panorama they navigate. With every state having its personal laws, managing these can get complicated!

It’s a testomony to the thoroughness of regulatory our bodies in making certain that each entity, no matter its relationship with a dad or mum firm, stays compliant with the legislation.

For shoppers, it’s a reminder that the model title they’re conversant in would possibly symbolize an online of interconnected firms working collectively to supply their providers.

Insurance coverage manufacturers typically promote value and likewise point out one thing about honest claims service. In Insurance coverage Firm Commercials and Guarantees of Peace of Thoughts Versus the Actuality of Claims Remedy, I instructed that regulators require insurance coverage firms to show over the inner claims working pointers to find out if the insurance coverage firms are actually offering that honest claims service: 

Why shouldn’t insurance coverage regulators require insurance coverage firms to supply claims bulletins and claims pointers about how claims will likely be dealt with on the level of sale and through the claims course of? If the insurer is appearing in good religion, why wouldn’t it be afraid to show over and publish these directives? It would result in a lot better and honest remedy, which is promised within the first place.

The federal authorities has its flood claims handbook publicly out there for all to see how adjusters are imagined to deal with claims. Why shouldn’t there be a rule supported by the Nationwide Affiliation of Insurance coverage Commissioners requiring all insurance coverage firms to publish their claims manuals relating to the dealing with of first-party property insurance coverage insurance policies on-line? What’s there to cover?  

I’ve by no means heard of an insurance coverage firm publicly saying this is able to be unhealthy public coverage. Such a rule could cease among the dishonest of unhealthy market gamers and supply higher belief within the business. 

Thought For The Day 

An absence of transparency leads to mistrust and a deep sense of insecurity.

—Dalai Lama