Annual Report for 2011 for Missouri Department of Insurance, Financial Institutions and Professional Registration

1. DIFP
Department of Insurance,
Financial Institutions &
2011 Annual Report
Jeremiah W. (Jay) Nixon John M. Huff
Professional Registration Governor Director
VIDEO
Director John M. Huff
on the responsibilities and duties of
the Department of Insurance, Financial
Institutions and Professional Registration.
ACCOMPLISHMENTS / DIVISIONS
Leadership Administration
Top 10 accomplishments Finance
Responding to disasters Credit Unions
Tornado recovery in Joplin Professional Registration
Joplin tornado timeline National leadership
Insurance Consumer Affairs
Insurance Market Regulation
Insurance Company Regulation
PROTECTING MISSOURI CONSUMERS DURING A CHALLENGING YEAR
NEXT >>>

2. Annual Report Leadership: A three-tiered mission
As the department that regulates insurance companies, the banking, lending and credit union industries
and licensed professionals in Missouri, our fundamental mission is three-tiered:
1 Protect Missouri consumers. 2 Encourage a competitive marketplace. 3 Strengthen state-based regulation.
DEPARTMENT LEADERSHIP TEAM
Jim McAdams Travis Ford Melissa Palmer Matt Barton Angela Nelson Fred Heese Grady Martin Rich Weaver Ken Bonnot Jane Rackers
Deputy director Communications Legislative Insurance Insurance Insurance Administration Finance Credit Unions Professional
director coordinator Consumer Market Company director commissioner director Registration
Affairs director Regulation Regulation director
director director
2011
Serving and protecting
“
doctor’s medical school and specialty,
Our divisions have gone far beyond such as oncology or family practice.
consumers affected by disasters
The incredible devastation to lives and
the call of duty in responding to the
One area of emphasis was the
property in the Joplin area has drawn Joplin tornado and other natural implementation of a new autism
disasters during this challenging year.
”
the attention of Missouri, the nation and law, which requires health insurance
indeed the world. And while our everyday companies to cover the best-known
demands of regulation must go on, the >>> Director John M. Huff treatment for autism, applied behavior
recovery and rebuilding of Joplin has analysis therapy. Our implementation was
dominated much of our work since the so successful and helpful to consumers
EF-5 tornado struck on May 22. worst catastrophe Missouri has ever seen. namely in the form of new consumer that Autism Speaks, the nation’s largest
We have worked with insurers, bankers, protection laws. advocacy group for autism, presented our
There is much to talk about when it consumers, city and federal officials and
comes to the leadership our teams have department with an award – the first
countless other parties as we continue to The Missouri Board of Healing Arts, which
provided for the Joplin area. That’s why of its kind – for exceptional efforts on
assist in this recovery. licenses and disciplines doctors and
we’ve devoted two pages to it in the behalf of individuals with autism.
other health care providers, has stronger
2011 Annual Report. authority to crack down on doctors who In the pages that follow, you’ll see that
Enhancements to consumer violate Missouri laws and regulations. while 2011 was a challenging year in many
I can’t begin to tell you how proud I am of The new law signed by Gov. Jay Nixon
the work done by the professionals in every protection laws ways, we successfully fulfilled our three-
also allows the board to release more tiered mission of protecting consumers,
division of DIFP They protect consumers
. While no one saw the unprecedented
information to the public about doctors. encouraging competitive markets and
every day, but they have gone far beyond natural disasters coming, 2011 also
Patients can now learn about their enhancing state-based regulation.
the call of duty in response to the single brought some changes we did expect,
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Leadership Responding to disasters Insurance Consumer Affairs Administration Professional Registration 2
DIFP Top 10 accomplishments Joplin tornado recovery Insurance Market Regulation Finance National leadership
Joplin tornado timeline Insurance Company Regulation Credit Unions

3. Annual Report TopTen
10 Accomplishments 2011 of
3 Effective 4 Leading bank chooses
implementation of to become Missouri’s
autism insurance mandate largest state charter
DIFP teams have spent much of 2011 The Division of Finance saw assets of
implementing Missouri’s new autism state-chartered banks grow dramatically
insurance law, signed by Gov. Nixon this spring when it approved Commerce
in 2010. The department has helped Bank’s application to convert its
providers and insurers work through national charter to a state charter.
DIFP consumer services representatives billing and coding issues, created Commerce became the division’s
advise consumers in Joplin just days after the substantial online educational materials largest regulated bank, with assets of
tornado struck. for providers and parents, and licensed $18 billion. Assets of state-chartered
123 behavior analysts through the banks have jumped by 30 percent: from
1 Joplin tornado response Professional Registration Division. $71.5 billion to $93.1 billion.
The Joplin tornado is the largest insurance Autism Speaks, the nation’s largest
event in Missouri history, with $1.3 advocacy group for autism, awarded
billion in claims paid by year’s end and an DIFP for exceptional efforts on behalf
2011
estimated insurance payout approaching of individuals with autism at its annual Nurse licensing fees will help
fund expanded nurse education
$2 billion. Missourians affected by the Autism Law Summit in October. And 5 Tougher regulations programs at Missouri colleges
Joplin tornado have been a top priority for DIFP hosted 80 treatment providers, for doctors and universities.
DIFP which has marshaled resources to
, insurers and advocates at the 2011
serve consumers and deployed a full-time DIFP Autism Provider Summit, featuring The new law governing physicians,
insurance regulator to Joplin. With DIFP’s the Governor as keynote speaker. signed by Gov. Nixon in 2011, has 6 Caring for Missourians
help, tornado victims who filed complaints been implemented at a brisk pace:
Recommendations by the State Board
have received $4.5 million in extra After a series of newspaper articles,
of Nursing resulted in Gov. Nixon’s
claims payments from their insurance a legislative package came together
December announcement of $1 million
companies. quickly, the bill was passed and signed,
in state grants to seven colleges and
IT enhancements were made to the
universities to enhance nurse education
Board of Healing Arts website and rules
2 Record consumer recoveries programs. The initiative, part of the
were quickly drafted and filed.
Caring for Missourians program, was
$21M Due in large part to natural
disasters throughout
created in 2011 legislation signed by
the Governor and is funded by nurse
Missouri, DIFP has returned a record licensing fees paid to the board.
amount of money to consumers who
filed complaints against their insurance
companies. Recoveries stand at $21
DIFP Legislative Coordinator Melissa
million, compared to 2009’s record
Palmer, left, and Insurance Market
amount of $14.6 million. Consumers Regulation Division Director Angela
made 12,460 complaints, compared to Nelson, right, accept an award from
7,692 in 2010. Autism Speaks’ Lorri Unumb.
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Leadership Responding to disasters Insurance Consumer Affairs Administration Professional Registration 3
DIFP Top 10 accomplishments Joplin tornado recovery Insurance Market Regulation Finance National leadership
Joplin tornado timeline Insurance Company Regulation Credit Unions

4. Annual Report TopTen
10 Accomplishments 2011 of
8 New law modernizes 10 Innovative agreement
credit union regulation protects 41,000 customers
A new law, signed by Gov. Nixon in of rural insurer affected
2011, brought needed updates to the by tornado
statutes enforced by the Division of Thanks to an agreement between
Credit Unions. Passed unanimously by DIFP Missouri Farm Bureau and the
,
the Missouri Senate and House, the state Property and Casualty Guaranty
law moves regulation of credit unions Association, 41,000 insurance
more in line with Missouri's banking policyholders in southwest Missouri
regulations, including investigative power have been protected. They are
and removal of officers and employees customers of the Barton County Mutual
for wrongdoing. 9 DIFP unites consumers Group, an insurer that became insolvent
CLAIM Program Director Carol Beahan,
The legislation marked the first with missing after Joplin tornado claims.
right, advises Rep. Joe Fallert on Medicare
comprehensive update of credit unions life insurance policies
questions. To the left is Tracey Wetzel, A Barton County judge approved a
lead trainer for CLAIM. DIFP and CLAIM law in 40 years. The new regulations By leveraging new technology DIFP proposal in which Farm Bureau
come at a time of growth for state- announced in October, DIFP now offers
2011
representatives, along with other agencies, lends the group $14 million and takes
provided information to legislators and their chartered credit unions in Missouri, help to consumers trying to find missing over operations. The move saves the
staff. which topped $10 billion in assets for life insurance policies for deceased Guaranty Association (and ultimately
the first time in Missouri history. loved ones. DIFP will accept search taxpayers) the burden of covering
forms from the public, then send the the group’s unpaid claims and saves
7 Medicare counseling policyholder information electronically to 41,000 consumers from having to
program jumps licensed life insurers in Missouri for a find new coverage on their homes and
in national ranks potential match. The first match united businesses.
Missouri’s CLAIM Program, which a woman with life insurance benefits
provides free counseling to Missourians from her father, who died in 2008.
with Medicare, has achieved a
significantly higher ranking from
Medicare. Thanks to a renewed
emphasis and better tracking of
consumers assisted, CLAIM’s national
ranking jumped nearly 20 positions
in 2011. For the past several years,
the ranking had been near the bottom
nationally.
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Leadership Responding to disasters Insurance Consumer Affairs Administration Professional Registration 4
DIFP Top 10 accomplishments Joplin tornado recovery Insurance Market Regulation Finance National leadership
Joplin tornado timeline Insurance Company Regulation Credit Unions

5. Annual Report Responding to disasters
2
4
Flooding
1
Tornadoes 3
DIFP divisions rally for victims
The year 2011 was, at times, destructive,
tragic and expensive. In addition to having a A DIFP team helps southeast Missouri flood victims
with recovery questions.
profound impact on Missouri consumers, the
unprecedented disasters affected every division
2011
of DIFP through:
, DIFP team advises flood victims
in five locations
zzHandling of consumer questions and
complaints. Members of the Insurance Consumer Affairs
5 Division provided guidance and resources to
zzRegulation of health care providers, who came
consumers affected by flooding in southeast
from all over to help those in need.
Missouri in early May.
zzEncouraging banks to give relief to mortgage
holders with property damage. The community response events were
zzMonitoring of insurance company performance organized by Gov. Nixon and held in Poplar
and solvency. Bluff, Sikeston, Charleston, New Madrid and
Caruthersville.
PHOTOS
1 DIFP team member Sam Hicks reads messages 4 Four months after the tornado devastated Joplin, DIFP hosts
left on the wall of a destroyed home in Joplin. a Recovery Roundup to help consumers still experiencing
insurance issues. A team of DIFP regulators, several other
2 Charlotte Onstott and Dennis Fitzpatrick help a agencies and insurance companies gathered to help consumers.
victim at the Recovery Roundup.
5 Three DIFP staff members help St. Louis-area consumers with
3 Julie Hesser assists consumers four days after questions about recovery from the April 22 tornado on Fox 2’s
the Joplin tornado. phone bank.
Gov. Jay Nixon speaks at a
Consumer complaints lead Joplin St. Louis Sedalia community meeting in Sikeston.
to additional claims payments $4.5 million $640,000 $250,000
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Leadership Responding to disasters Insurance Consumer Affairs Administration Professional Registration 5
DIFP Top 10 accomplishments Joplin tornado recovery Insurance Market Regulation Finance National leadership
Joplin tornado timeline Insurance Company Regulation Credit Unions

6. Annual Report Tornado recovery in Joplin
Largest insurance event in Missouri history. $1.3 billion in claims paid as of Dec. 31, 2011.
2011
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Leadership Responding to disasters Insurance Consumer Affairs Administration Professional Registration 6
DIFP Top 10 accomplishments Joplin tornado recovery Insurance Market Regulation Finance National leadership
Joplin tornado timeline Insurance Company Regulation Credit Unions

7. Annual Report Joplin tornado timeline
May 22: A deadly EF-5 tornado strikes at May 26: Director John Huff, with a June 1: DIFP announces 17,000 June 23: Credit Unions Division Director
5:41 p.m., killing 161 and destroying or Highway Patrol escort, visits insurers’ insurance claims have been filed. Ken Bonnot visits the three state-
damaging 8,000 homes and buildings. mobile claims units. "For consumers chartered credit unions in Joplin to
with property damage, the time to act is June: DIFP works with FEMA and assess damage.
May 23: DIFP now," Huff says. city officials to establish standards
launches Web consistent with homeowners policies to
page with claim May 26: Gov. Nixon issues an executive allow for expedited debris removal.
and complaint order that restricts the activities of public
guidance for adjusters, prohibits cancellation or non- June 7: DIFP staffs the new state
consumers, as renewal of policyholders in Jasper and Resource, Recovery & Rebuilding Center,
well as toll-free Newton counties, and requires insurers to which is opened today by Gov. Nixon.
phone numbers and mobile provide free copies of policy documents.
claims unit addresses for insurers.
July 20: A Joplin radio talk show
May 24: The state Board of Pharmacy DIFP HOSTS RECOVERY ROUNDUP features Communications Director Travis
releases guidelines to affected Ford, who encourages consumers to
pharmacies on maintaining drug report their insurance coverage and
inventory. Procedures are given for claim problems to DIFP .
2011
opening temporary pharmacies during a
disaster. Aug. 22: DIFP offers
a self-service kiosk
May 25: Division of Finance for Joplin consumers
Commissioner Rich Weaver sends a in the Resource,
letter to Joplin-area banks encouraging Recovery & Rebuilding
them to work with homeowners hard hit Center.
by the tornado. The division and FDIC
encouraged banks to extend repayment DIFP’s team of regulators help consumers with insurance issues. Sept. 13: DIFP announces insurance
terms, restructure loans and ease terms Rob Reichart and Charlotte claim payments reach $1 billion.
Sept. 24: A DIFP team hosts a daylong Onstott help consumers.
for new loans. Nov. 28: DIFP issues bulletin to insurers
Recovery Roundup at Missouri
May 26: DIFP sets up shop at Missouri Southern State University to help Joplin saying Joplin homeowners need more
Southern residents dealing with insurance and time to rebuild. Enforcing rebuilding
State financial issues. Among the agencies deadlines of less than one year could
University offering help 120 days after the be unreasonable and may subject the
to help tornado: Missouri Division of Finance; Board of Architects, insurer to enforcement action.
residents and Professional Engineers, Professional Land Surveyors and Dec. 31: Following complaints made
businesses Landscape Architects; Missouri Department of Economic to DIFP $4.5 million in consumer
,
with Development; FEMA; Joplin Public Works Department; and recoveries has been returned to tornado
insurance Consumer Credit Counseling. Insurance companies also The youngest visitors check victims.
questions. Director John Huff, left,
were on hand to help DIFP address consumer concerns. out a Joplin fire truck.
advises a consumer with
insurance questions.
DIFP >>>
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Leadership Responding to disasters Insurance Consumer Affairs Administration Professional Registration 7
Top 10 accomplishments Joplin tornado recovery Insurance Market Regulation Finance National leadership
Joplin tornado timeline Insurance Company Regulation Credit Unions

8. Annual Report Insurance Consumer Affairs Division
Helps consumers resolve complaints and inquiries. Investigates insurance agents, public adjusters and bail bond agents suspected of violations.
Provides information on insurance policy questions. Provides insurance education and outreach activities to Missouri consumers.
DIVISION STRUCTURE
Consumer Services Investigations Section
Section This section handles New state laws will protect
This section mediates Insurance complaints against insurance
consumers after disasters
complaints filed by consumers Consumer agents and agencies, bail
bond agents and public
against insurance companies.
Actions by the section can
HOTLINE adjusters.
Two new laws signed by Gov. Nixon
in 2011 will further protect insurance
result in insurers paying higher policyholders:
claim amounts to policyholders, 800-726-7390 To discipline an agent, the
reversing denials of coverage department in most cases Repair contractors working Insurance claims
or other steps consistent with Consumers with questions must file a complaint with with homeowners handling
state law or specific insurance can call the Insurance the Administrative Hearing SB 101: Contractors who SB 132: Missouri law
policies. Consumer Hotline or visit Commission (part of the perform roof or other residential now forbids city and
insurance.mo.gov Office of Administration), exterior work cannot offer county governments
This section provides which determines whether from restricting
consumer education about TDD line for hearing impaired: to pay a homeowner’s
2011
there is cause for discipline. insurance deductible to get insurance companies
insurance products through 573-526-4536
When cause is found, the the job. They also cannot trying to provide
the department’s website, by department can suspend claims services to
providing on-site counseling negotiate an insurance claim
How we can help or revoke licenses, put a on behalf of a homeowner. storm victims. In
after major storms and by licensee on probation or 2011, some local
participating in outreach events Take your complaint Many times, contractors call
order continuing education. themselves “insurance claims ordinances prevented
throughout the state. It also Verify an agent's license insurers from setting
provides counseling and other specialists,” which can confuse
Get help understanding The section also investigates consumers on the roles of up mobile command
resources to individuals and an insurance policy unlicensed activity and reviews centers in areas hit
employers to assist them with insurance adjusters and repair
agent license applications. contractors. by storms.
shopping for health insurance.
2011 STATS
5
Consumer Services Investigations Section BY TYPE OF INSURANCE BY REASON
Section Top
five
zzAgent Health 1,048 Claim denial 916
zzConsumer restitution investigations
conducted: Auto: private passenger 845 Claim delay 647
recovered: $19.2 million
1,788
zzConsumers assisted by phone: 21,251 Consumer Homeowners 635 Unsatisfactory settlement 511
zzActions against
zzFormal complaints and inquiries
agents: 109
complaints Life and annuity 289 Billing 148
opened: 12,460 Auto: commercial 70 Adjuster handing 128
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Leadership Responding to disasters Insurance Consumer Affairs Administration Professional Registration 8
DIFP Top 10 accomplishments Joplin tornado recovery Insurance Market Regulation Finance National leadership
Joplin tornado timeline Insurance Company Regulation Credit Unions

9. Annual Report Insurance Consumer Affairs Division
2011 ACHIEVEMENTS
Consumer Affairs Division recovers record amount for 2011
The division obtained record recoveries $19.2 From students to seniors
of $19.2 million for consumers in
DIFP educates consumers
million
2011. The previous record was set
in 2009, when recoveries hit $14.4 $14.4
$13.7 $13.8
$12.4 million 1
million. million million
million
More than one-fifth of this year’s total Record 2
has gone to consumers affected by recovery
the Joplin tornado. Also increasing
dramatically are consumer complaints,
which were up 62 percent over 2010. 2007 2008 2009 2010 2011
New Life Policy Locator service helps consumers find
policies of deceased loves ones
The division in November created a DIFP
Life Policy Locato
Department of Insura
nce,
Life Policy Locator service to help 4
Financial Institutions
2011
Professional Regist
&
ration r Service
CONFIDENTIAL PERS
ONAL INFORMATION
consumers locate benefits from life The Missouri Depa
rtment of Insur ance
or annuity contr acts can help consumers
locate and identify
insurance.mo.gov
3
of a deceased policy
insurance policies or annuity contracts holder. individual life insur
ance policies
WHO CAN SUBMIT
A REQUEST
Individuals who believ
purchased in Missouri.
e they are beneficiarie
An executor or legal s, or
representative of a
when a policy was deceased individual
issued or annuity was who may have lived
purchased. in Missouri
HOW TO SUBMIT A
REQUEST
Complete all inform
ation, sign it befor
Individuals who believe they are
with an original certifi e a notar y public and
ed death certificate mail it in an envelope
to: marked “Confidenti
Life Policy Locator al” along
Missouri DIFP
beneficiaries, as well as executors and PO Box 690
Jefferson City, MO
65102
Phone: 800-726-73
573-751-2640
90
TDD: 573-526-4536
legal representatives of the deceased then contact the beneficiary if a policy
UPON RECE IPT OF
THE REQUEST form
Forward the comp and death certificate,
leted form and any the Department of
licensed life insur ance attachments, along Insur ance will:
companies. with the death certifi
person, may submit a search request
cate, to all Missouri-
is located. By the end of 2011, of the
Ask that the companies
policies or individual
search their records
annuity contr acts in
to deter mine wheth
the name of the decea
er they have any indivi
dual life insurance
form. Requests are forwarded to
sed.
46 searches requested, the division
Ask that they respo
nd directly to the reque
annuity contr acts namin stor only if they have
g the deceased, and any individual life insur
if the requestor is ance policies or
authorized to receiv
e this information.
life insurance companies, which will recovered $24,591 for consumers.
PLEASE PRINT, TYPE
OR WRITE CLEARLY
IN BLACK OR BLUE
1 INK
REQUESTOR’S CONT
ACT INFORMATION
DATE OF REQUEST
1 Investigator Sheri Sloan talks to Jefferson City High School students about
Consumer services rep named State Employee of the Month insurance. Students also viewed an electronic presentation on auto insurance.
REQUESTOR’S
FULL NAME
LAST
FIRST
ADDRESS MIDDLE
Communications intern Kenny Gerling hands out Medigap guides to seniors
STREET
The division’s Suzie Comstock worked here for six years.
EMAIL
CITY
STATE ZIP CODE 2
attending AARP’s Summerfest.
COUNTY ADDRESS
DAY
PHONE
was named the January 2011
“Employees like Suzie are NEXT
Division Director Angela Nelson, right, explains complaint information to
State Employee of the Month.
MO375- 0842 (8-2011
3
)
invaluable to our department legislative assistants at the Capitol. She and representatives of other
She is a consumer services
and Missouri consumers,” said state agencies talked with legislators and their staff about how they assist
specialist II, handling consumer
Director Huff. “Health insurance constituents with insurance questions and complaints.
complaints regarding life and
can be complicated and
health insurance. Senior office support assistant Lori Eggen distributes information at the
expensive, and consumers have 4
Missouri Institute on Minority Aging conference at the Lake of the Ozarks.
She also was DIFP’s insurance employee more questions than ever before about
of the fourth quarter for 2010. Suzie has their coverage.”
DIFP >>>
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Leadership Responding to disasters Insurance Consumer Affairs
Insurance Consumer Affairs Administration Professional Registration 9
Top 10 accomplishments Joplin tornado recovery Insurance Market Regulation Finance National leadership
Joplin tornado timeline Insurance Company Regulation Credit Unions

10. Annual Report Insurance Market Regulation Division
Reviews insurance policies, rates, products and marketing strategies for compliance with Missouri law.
Performs market conduct examinations to ensure fair treatment of policyholders and compliance with Missouri law, and monitors the marketplace.
DIVISION STRUCTURE
Market Conduct Section Statistics Section
Unlike the Consumer Affairs Division, which This section creates databases,
handles individual complaints, the Market
Robust insurance market publishes reports on various insurance
Conduct Section explores deep into the Premium volume for Missouri insurers markets in Missouri and monitors the
operations of insurance companies suspected reached $30 billion for the first time in availability and affordability of insurance
of violating Missouri laws. Violations found 2011. coverage in the state. Extensive data on
during exams and investigations may result in insurance companies doing business
fines and restitution to policyholders. Fines and The Missouri insurance market ranks
in Missouri can be found on the
penalties go to the Missouri State School Fund. 37th in the world, exceeding many
department’s website.
countries including Argentina and Norway.
Market conduct consumer recoveries Two Missouri-based reinsurers, RGA DIFP annually prepares reports on:
2011 $1,769,580 Reinsurance Co. and Generali USA, Consumer Complaint Index
2010 $996,772 comprise nearly 42 percent of the
Market Share
national market share for life reinsurance.
2011
Homeowners Insurance
Market conduct company fines Private Passenger Automobile
2011 $465,168 Medical Malpractice
Life and Healthcare Section
2010 $909,641 Real Estate Malpractice
This section pre-approves all life and Small Employer Health Insurance
health insurance policy forms sold Availability Act, which protects small Legal Malpractice
to Missouri consumers. This prior businesses. Product Liability
Property and Casualty Section approval requirement extends to
Life, Accident & Health Supplement Data
This section reviews policies and rates for auto, group and individual health policies, Life & Healthcare/2011
annuities, prepaid dental plans, HMOs Mortgage Guaranty Insurance
homeowners, title, workers’ compensation, Form & rate filings reviewed
commercial property, credit, malpractice and others. Property & Casualty Supplement
Letters of violations
insurance and more. Medigap rates must be approved
by the section. The section 4,230
If DIFP finds violations in filings, insurance
companies are notified. In 2011, 1,754 filings enforces HIPAA, as well as the 1,747
were corrected through this process.
Property & Casualty/2011 Companies offering coverage in Missouri at beginning of the year
Form & rate filings reviewed 2010 2011 2010 2011
Filings corrected Homeowners 120 133 HMOs 20 21
5,402 Auto 220 210 Long-term care 103 102
Comprehensive health (excludes HMOs) 91 83 Medical malpractice 41 41
1,754
Life & annuities 434 427 Workers’ comp 290 303
10 >>>
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Leadership Responding to disasters Insurance Consumer Affairs Administration Professional Registration
DIFP Top 10 accomplishments Joplin tornado recovery Insurance Market Regulation Finance National leadership
Joplin tornado timeline Insurance Company Regulation Credit Unions

11. Annual Report Insurance Market Regulation Division
2011 ACHIEVEMENTS
Training provided for health care providers, insurers
DIFP hosted the Autism
Provider Summit in Jefferson
Autism best practices when filing
insurance claims.
PROVIDER
City, which was attended by
over 80 health care providers,
Summit Gov. Nixon, who signed
insurers and parents of children the law in 2010, praised the efforts
affected by autism. of DIFP providers and insurers for
,
working together during a smooth
A DIFP team gave a primer on the first year of implementation. The law See our autism resources page:
new law and its requirements for requires health insurance insurance.mo.gov/consumers/
insurance companies and updates companies to cover the best-known autismFAQ
on licensing of behavior analysts. treatment for autistic children,
Participants also heard from insurers applied behavioral analysis, up to Autism coverage stats
and autism treatment providers on $40,000 per year.
In 2011, the first year of the new
autism law:
zz1.3 million Missourians were
covered by a health plan that offers
2011
coverage for autism therapies.
zz3,805 Missourians received
autism treatment that was covered
by their health plans.
Gov. Nixon speaks at the summit. About 80 zzClaims for autism-related
participants learned about navigating the insurance treatments totaled $4.3 million,
world, setting up infrastructure and billing systems, just .1 percent of health insurance
and licensing their staff. company claims for the year.
Workers’ compensation insurance in Missouri – more competitive than ever
There were eight more companies zzThe number of companies offering coverage continues to grow,
offering workers’ comp coverage at the giving Missouri employers more choice than ever before in insurance.mo.gov
beginning of 2012 than a year ago. selecting an insurance plan. The insurance divisions
zzMissouri businesses are paying less for coverage than in 1994. launched a new
2012 311
zzDIFP and industry analysts have predicted decreases in overall streamlined website that
2011 303 claims payments (loss costs) for six consecutive years. increases usability and
zzThe frequency of on-the-job injuries has declined for 15 straight focuses on driving and
2010 290 years, with a total reduction of 50 percent during that time. retaining traffic.
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Leadership Responding to disasters Insurance Consumer Affairs Administration Professional Registration
>>>
DIFP Top 10 accomplishments Joplin tornado recovery Insurance Market Regulation Finance National leadership
Joplin tornado timeline Insurance Company Regulation Credit Unions

12. Annual Report Insurance Company Regulation Division
Monitors and analyzes the financial condition of insurance Certifies and collects premium
companies licensed in Missouri to ensure they can pay claims. taxes due to the state.
DIVISION STRUCTURE
Financial Exam Section Admissions Section Taxation Section revenue and state school funds.
This section performs examinations of This section issues licenses, known as This section determines premium taxes,
This section also regulates surplus lines
insurance companies headquartered certificates of authority, to insurance which insurance companies pay in lieu
insurers, including the placement of
or incorporated in Missouri. These are companies doing business in Missouri. of income taxes. Insurers file tax returns
policies and premium tax owed. Surplus
known as domestic insurers. The section issues a license after with DIFP by March 1. After auditing the
lines companies are not licensed
financial and policy analysts review a returns, the department informs the
insurers, but they provide coverage not
Exam time company’s financial health, proposed state Department of Revenue the tax
typically available in the commercial
forms and history. due from each company.
market. Examples include coverage of
DIFP analyzes quarterly financial The section also enforces laws The Missouri premium tax rate is 2 shipping, entertainment events, antique
statements from insurance governing 1,625 regulated entities. percent. These taxes go to general cars and terrorism.
companies doing business These are not insurance companies,
in Missouri. In addition, the but they provide some type of Tax collections (fiscal year) FY 2009 FY 2010 FY 2011
department conducts comprehensive insurance-related product. Examples
financial examinations: Premium sales $209.9M $222.6M $216.4M
are providers of service contracts
2011
zzThe division examines Missouri- Workers’ compensation 8.7M 12.5M 12.4M
for motor vehicles and homes,
based (domestic) insurers every discount medical plans and third-party Surplus lines 21.9M 23.0M 22.2M
three to five years. administrators. Captive insurance companies 118,473 489,388 642,871
zzMissouri’s county and farm Tax credits (on premium tax only) 75.4M 74.6M 74.4M
mutuals are examined at least
every five years.
zzOut-of-state (foreign) and
international (alien) insurers are
examined by regulators in their Captive Insurance Section John Rehagen, CFE,
jurisdiction. A captive insurer provides in-house insurance coverage for directs Missouri’s
its parent company. It is designed to complement existing Captive Insurance
insurance coverage as part of the business’s overall risk Program.
management strategy. Companies
Financial Analysis Section interested in
Captives also provide benefits to the state: Each captive creating captive operations in
This section monitors the solvency pays premium tax for the business it writes, and captives can
and legal compliance of all insurance Missouri may contact:
create jobs for service providers they employ such as lawyers,
companies doing business in Missouri. John.Rehagen@insurance.mo.gov
accountants, consultants and actuaries.
At year’s end, there were 1,900 573-522-2563
insurance companies licensed in Licensed Missouri captives handle life reinsurance, workers’ insurance.mo.gov/captive
Missouri. compensation deductibles, group health and more. About 99
percent of captive premium volume is reinsurance.
12 >>>
>>>
Leadership Responding to disasters Insurance Consumer Affairs Administration Professional Registration
DIFP Top 10 accomplishments Joplin tornado recovery Insurance Market Regulation Finance National leadership
Joplin tornado timeline Insurance Company Regulation Credit Unions

13. Annual Report Insurance Company Regulation Division
2011 ACHIEVEMENTS
he division’s primary focus for RECEIVERSHIP PROCESS
T 2011, as with the past several
years, was close monitoring of
the solvency of Missouri domestic
insurance companies. Insurers, like banks
and credit unions examined by DIFP continue
,
When an insurer is in danger of
insolvency, the division can go to court
to ask that the company be placed in
receivership. Two insurers were placed
in receivership in 2011. Receivership
to combat challenges resulting from the protects policyholders by placing a
economy of the past four years. This year company under the full control of the
was an especially challenging one for DIFP director.
property and casualty insurers due to the
large number of natural disasters, including This process is overseen by DIFP’s
the Japan earthquake and tsunami. Receivership Section, which
manages 19 insurance companies in Telepresence saves money, time
rehabilitation or liquidation. Claims of The division is using technology to bring together experts and DIFP financial
Innovative agreement prevents companies in receivership are covered examiners and analysts from the St. Louis, Kansas City and Jefferson City offices
liquidation of insurer by the Missouri Insurance Guaranty to reduce travel expenses. The division used the state’s new “Telepresence”
Thanks to an agreement between DIFP , Fund, which pays claims for insolvent videoconferencing system for a seminar put on by the National Association of
Missouri Farm Bureau and the state insurers. Insurance Commissioners. “Telepresence is the next best thing to an in-person
Insurance Guaranty Association, 41,000
2011
group meeting,” says division Director Fred Heese.
insurance policyholders in southwest Missouri
have been protected. They are customers of Insurance company changes
the Barton County Mutual Group, an insurer
’09 ’10 2011
Captive insurance premiums again top $1 billion
that became insolvent after Joplin tornado
claims. New insurance The Captive Written Total Licenses
companies admitted 41 25 29 Insurance Section MO premium captives issued
Under a court-approved proposal submitted by New non-insurance 85 51 47 continues to grow.
DIFP Farm Bureau lends the group $14 million
, 2011 $1.7B 19 8
companies admitted In 2011, the CLOSE TO HOME
and takes over operations. The move saves number of licenses 2010 $1.5B 11 6
Mergers 19 13 16
the Guaranty Association (and ultimately issued increased by eight to 19. 2009 $1.1B 6 3
taxpayers) the burden of covering the group’s Lines of authority added 14 13 10
Captives again topped the $1
unpaid claims and allows policyholders 2008 $123M 3 1
Company withdrawals 29 10 11 billion mark in premium volume and
to keep their residential and commercial produced over $1 million in premium 2007 $30M 2 2
insurance coverage. tax in 2011.
2011 STATS
Record
sales
Financial Analysis Section Financial Admissions Section Taxation Section
zzInsurance premium sales: $30 billion zzTotal licensed insurance companies: 1,900 zzRegistered entities zzMissouri premium tax rate: 2%
Domestic (Missouri) insurers: 209 (non-insurance zzPremium taxes paid to general revenue
zzTotal capital and surplus: $948 billion companies regulated
Foreign (out-of-state) insurers: 1,559 and state school funds: $229 million
zzTotal admitted assets: $4.8 trillion Alien (non-U.S.) insurers: 132 by DIFP): 1,625
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