Insurance and safety fire report, 2007 January

Capital Steps

Commissioner John W. Oxendine

January 2007 Vol. 1, Issue 1
In This Issue

Capitol Steps........................................................................3

Oxendine Receives Visionary Award......................................3

$21.9 Million Recovered for Georgia Insurance Consumers in 2006................................................4

Actions Against Agents..........................................................4

Brunswick Agent Arrested for Fraud.........................................5

OUR MISSION OUR VISION
The mission of the Office of Commissioner of Insurance is to ensure that the public's interests are served through professional oversight of regulated industries, consumer protection, and broadbased educational activities.
Our vision is to have a welltrained workforce using state-ofthe-art technology to facilitate professional regulation, greater coordination and uniformity among state regulators, and greater public access to services and information that result in a more fire-safe environment and a consumer-friendly, competitive marketplace for insurance and small loan products.

Oxendine Orders Hearing on St. Paul Travelers' Business Practices in Coastal Georgia.......................5
Georgia Firefighters Recognition Day Feb. 6............................6
2006 Ends with Fire Deaths at Historic Low................................7
Spring Fire Safety Blitz in Americus............................................7
DOI Employees Receive Faithful Service Awards.......................8
The Dept. of Insurance Welcomes New Employees.................9
Commissioner Inspects Tornado Damage.................................9
John W. Oxendine, Georgia Insurance and Safety Fire Commissioner 2 Martin Luther King, Jr. Dr., Atlanta, GA 30334
404-656-2056 www.gainsurance.org inscomm@mail.oci.state.ga.us
Agents Licensing, 404-656-2100 Consumer Services, 404-656-2070, 1-800-656-2298 Industrial Loan Division, 404-656-2078 Regulatory Services, 404-656-2074 Arson Hotline, 1-800-282-5804 Fraud Hotline, 1-800-726-6070 State Fire Marshal 404-656-2064 Public Education 404-657-0831

Jason M. Shepherd, INSURANCE & SAFETY FIRE REPORT Editor INSURANCE & SAFETY FIRE REPORT is published monthly by the Georgia
Department of Insurance.
Front page image courtsey of the Georgia Department of Economic Development.

Capitol Steps

From New Laws to "Appreciation Days;" What the Annual Legislative Session Means to Georgia's Insurance and Fire Professionals

It is January in Georgia and along with the cold weather, the legislature has blown into Atlanta. The 40 day session has begun in earnest and you can expect there will be several pieces of legislation that will be of interest to those in the insurance industry and to our state's fire fighters.
There are several ways to track legislation. Local newspapers, the bill tracking features of the legislature's website (www.legis.state.ga.us), and contacting the representatives or senators directly all provide ways to find out what is going on under the Gold Dome.
One of the best ways to track important legislation is through the industry

associations. Associations provide a strong voice under the Gold Dome to inform our legislative members how the laws they are voting on affect the lives and livelihood of those they represent.
"I encourage everyone to join a professional association," says Commissioner John Oxendine. "We cannot call several thousand insurance agents or firefighters to ask their opinion, so we call the leaders elected through those associations."
Additionally, many industry groups will host events in Atlanta to allow their members to meet with members of the legislature. Individual companies and associations will host events at various times throughout the session.

Firefighter Recognition Day is in early February and our elected state officials will have the honor of paying homage to all of those who help keep Georgians safe from fires (more information can be found on page 6).
"I hope each and every one of you will take an active interest and follow closely the events as they unfold under the Gold Dome," said Oxendine. "Make an attempt to visit or speak with your state representative and senator and let them know what you would like to see happen in your state; after all, they are here to represent you."
If my office can be of any help in educating your clients, feel free to give us a call. P

Oxendine Receives Visionary Award from Hometown Health

HomeTown Health, an association of 55 rural Georgia hospitals, which includes Berrien County Hospital, announced today that it has selected Insurance Commissioner John Oxendine to receive the 2006 Visionary Award.
"Commissioner Oxendine had the vision to look far into the future of rural healthcare needs in Georgia to see that telemedicine technology could improve healthcare outcomes of rural Georgians," said Jimmy Lewis, CEO of Hometown Health. "Due to the insight of John Oxendine, rural Georgia has become a member of the digital technology world."

Telemedicine is a health care delivery system that applies high-speed phone lines, computer equipment and specialized medical cameras to securely enable physician specialists to consult with patients remotely. This allows patients from rural areas to receive diagnosis and treatment plans from leading specialists in the state without the inconvenience of having to travel outside of their neighborhoods.
Oxendine renegotiated the merger of WellPoint Health Networks, Inc., which owns BlueCross BlueShield of Georgia. Approval of the merger included approximately $126.5 million

over 20 years to establish, equip and finance telemedicine sites in 36 rural Georgia hospitals or clinics.
As of Sept. 1, 2006, 69 specialists representing 37 specialties, including dermatology, endocrinology, cardiology, and pediatric neurology, are now available to serve rural areas at 48 telemedicine locations throughout the state. To date, the program has produced more than 175 telemedicine encounters.
The Visionary Award was presented to Oxendine at the HomeTown Health Annual Meeting held at Callaway Gardens on November 13th. P

January 2007 INSURANCE & SAFETY FIRE REPORT Page 3 of 9

$21.9 Million Recovered for Ga Insurance Consumers in 2006

In 2006, Insurance Commissioner John W. Oxendine's office helped thousands of Georgia consumers settle disputes with their insurance companies, returning $21.9 million in insurance claims to policyholders, money they might not have received without his help.
"Representatives in our Consumer Services and Managed Care Divisions helped consumers and businesses re-

trieve $21,920,681," Oxendine said. "Many of the citizens who called my office had claim disputes with insurance companies and our investigators were able to secure a settlement favorable to the consumer."
Over the past twelve years, Oxendine's office has retrieved $158 million.
"Our office takes calls Monday through

Friday from 8 a.m. to 7 p.m., so we can offer the convenience of assisting consumers by phone after traditional working hours," Oxendine added.
The Commissioner also sends field representatives to counties outside the metropolitan Atlanta area at least once a month. Consumers can meet with an investigator for face-to-face advice on any type of insurance concern. P

Actions Against Agents

Note: The actions listed below reflect cases that have been finalized and are currently closed in the Enforcement Division of the Insurance Commissioner's Office. Each case is determined on a case-by-case basis.

Bohus, Christopher (2006-2074) Marietta, Georgia 30064 On November 7, 2006, Mr. Bohus agreed to have his Georgia resident license issued on a probationary status for a period of 12 months.
Hill, Raymond Gerald Jr. (20062102) Blue Ridge, Georgia 30513 On November 8, 2006, Mr. Hill agreed to pay a fine in the amount of $300.
Pellegrino, Angela (2006-1652) Canton, GA 30115 On November 7, 2006, Ms. Pellegrino agreed to have her Georgia resident license issued on a probationary status for a period of 24 months.
Watts, Darrell (2006-745) Jonesboro, Georgia 30238-4877 On November 20, 2006, Mr. Watts agreed to pay a fine in the amount of $300 and to have his resident subagent

license issued on a probationary status for a period of 12 months.
Carmichael, Arthur (2006-786) Los Altos, CA 94024-6160 On December 22, 2006, Mr. Carmichael agreed to have his current nonresident agent license placed on probationary status for a period of 12 months.
Harrison, William Rhett (2006-1778) Milledgeville, GA 31061 On December 12, 2006, Mr. Harrison agreed to have his Georgia resident license issued on a probationary status for a period of 24 months.
Peters, John Jr. (2006-2277) Moultrie, Georgia 31788 On December 12, 2006, Mr. Peters agreed to have his Georgia resident license issued on a probationary status for a period of 24 months.

Rouse, Philip James (2006-1946) S. Milwaukee, Wisconsin 53172 On December 11, 2006, Mr. Rouse agreed to pay a fine in the amount of $300.
Watters-Fletcher, Terran (2006-558) Dacula, Georgia 30019 On December 28, 2006, Ms. WattersFletcher agreed to pay a fine in the amount of $300.
Williams, Cheryl (2006-1435) Orlando, Florida 32818 On December 19, 2006, Ms. Williams agreed to have her Georgia nonresident license issued on a probationary status for a period of 12 months.
Williams, Nellie (2006-037) Tampa, Florida 33634 On December 20, 2006, Ms. Williams agreed to pay a fine in the amount of $300. P

January 2007 INSURANCE & SAFETY FIRE REPORT Page 4 of 9

Oxendine Orders Hearing on St. Paul Travelers' Business Practices in Coastal Georgia

Reducing commissions to discourage new policies and modification of exisiting property and casualty policies without sufficient notice are just two of the violations that Commissioner John Oxendine is alleging against St. Paul Travelers Insurance Companies.
The Commissioner made the announcement in Savannah on Janurary 19, 2007, that he will be holding a hearing into business practices of St. Paul Travelers Insurance Companies, that results in the group writing fewer policies in Georgia's coastal counties.
"The market manipulations of this insurer are contrary to state insurance laws," Oxendine said. "I won't stand for companies that plot to reduce coverage for any segment of Georgia's

citizens."
According to Oxendine's order, St. Paul Travelers has reduced commissions paid to agents on
"The market manipulations of this insurer are contrary
to state insurance laws."
homeowners policies sold in Bryan, Camden, Chatham, Glynn, Liberty, and McIntosh Counties. The intention, the Commissioner said, is for St. Paul Travelers to write fewer policies in those counties.
St. Paul Travelers is additionally charged with modifying existing property and casualty policies in the

coastal counties by means of a "Named Storm Endorsement" that was not part of the company's filed and approved endorsements.
The company also failed to provide sufficient notice to its policyholders regarding the "Named Storm Endorsement."
The hearing could result in a cease and desist order issued against the company for unfair trade practices.
The hearing is scheduled for Friday, February 9th, at 10 a.m. in the Commissioner's office.
Minnesota-based St. Paul Travelers Insurance Companies does business in Georgia through approximately 42 affiliated companies. P

Brunswick Agent Arrested for Fraud

Commissioner Oxendine and Waycross Police Chief Anthony Tanner announced on January 25th the arrest of three suspects in an insurance fraud case in Waycross, Ga.
Insurance agent Tony Taylor, Jr., 25, of 103 Overlook Point, Brunswick, was charged with six counts of insurance fraud. Taylor allegedly applied for life insurance policies on six individuals who were not present for the application process.
Bertha Sellers, 68, has been charged with two counts of insurance fraud; her son Sidney Sellers, 47, has been charged with four counts of insurance

fraud and four counts of forgery, the latter charges for allegedly signing the names of purported applicants on the policies.
Oxendine said none of the applicants paid for the policies; premiums were paid by Bertha or Sidney Sellers, who were also listed as beneficiaries. When interviewed, the alleged applicants said they did not apply for life insurance and had never met Tony Taylor.
The face value of the policies was $100,000 each. Though one of the covered individuals, Elsie Jenkins, passed away last April, Oxendine said no claims were paid on the fraudulent

policies. The insurer was Peoples Benefit Life Insurance Company of Cedar Rapids, Iowa.
"Taylor allegedly applied for life insurance policies on six individuals
who were not present for the application process."
The victims, all of Waycross, included Jerry Paige, 40; Grady Gordon, 59; Barbara Williams, 44; Scott Staten, 50; Elsie Jenkins, 62, deceased; and Geraldine Clark, 57.
Oxendine's Fraud Unit assisted the Waycross Police Department in the investigation. P

January 2007 INSURANCE & SAFETY FIRE REPORT Page 5 of 9

Georgia Firefighters Recognition Day Feb. 6

Firefighters' Recognition Day will be Thurbert Baker, Speaker of the House

held at the State Capital in Atlanta on Glenn Richardson, and several key

Tuesday, February 6, 2007.

Committee Chairs.

FIRE SAFETY HOUSE
With spring festivals around the corner, don't forget to put in your request to have the Fire Safety House visit your community to teach the importance of fire safety.

7:30 a.m. Contingent of fire apparatus from throughout the State begins arriving for staging at Turner Field (Gold Lot & Green Lot) and subsequent deployment around the Capital for the Recognition Day Ceremonies.
7:30 a.m. - 9:15 a.m. Insurance Commissioner John W. Oxendine will host a continental breakfast for firefighters. Local fire marshals will also be deputized during this time. This function will be held in the State Capitol Building in the South Wing of the Capitol on the second floor.

The ceremonies will be called to order by GSFA President Wayne Hadden and will commence at 10:45 a.m. with the presentation of colors by the Cherokee County Fire Emergency Services Color Guard and music by the Valdosta Fire Department Bagpipe Band. Firefighters and guests are requested to assemble in the South Wing of the Capitol by 10:15 a.m.
During the ceremonies Governor Perdue will applaud contributions made by all fire service personnel in Georgia, and will also recognize and present commendations to GSFA award recipients.

Contact Greg Norton or Penny Tanner at 404-657-0831 for more information.
ON THE WEB
Georgia Department of Insurance www.gainsurance.org
GA Public Safety Training Center www.gpstc.georgia.gov
GA Firefighters Burn Foundation www.gfbf.org
GA State Firefighters Association www.gsffa.org

10:00 a.m. - 11:30 a.m. 35th Annual Firefighters Recognition Day Ceremonies at the State Capitol (South Wing, Second Floor), sponsored by the Georgia State Firefighters Association.
Now set by law for the first Tuesday in February, the Firefighters Recognition Day sponsored by the Georgia State Firefighters Association honors the important role that firefighters play in the safety of their community and the State. Invited speakers include Governor Sonny Perdue, Lt. Governor Casey Cagle, Secretary of State Karen Handel, Insurance Commissioner John W. Oxendine, Attorney General

12:00 p.m.. A luncheon sponsored by the Georgia Firefighters Burn Foundation will follow the Capitol ceremonies and will be held at the Georgia State Student Center on Courtland St. Reservations are not being taken - it is first come, first served. For further information, call GFBF at 404-320-6223 or 800-2732877.
1:30 p.m. Following the Burn Foundation luncheon, firefighters will return to their apparatus and proceed to Turner Field for demobilization. P

Federal Alliance for Safe Homes www.flash.org
GA Public Safety Ed. Assoc. www.geocities.com/gpsea2001
2006 GEORGIA FIRE FATALITIES
As of December 31, 2006 96 Fire fatalities 79 Adults (17 years +)
17 Children (under age 17)
Arson Hotline
1-800-282-5804

January 2007 INSURANCE & SAFETY FIRE REPORT Page 6 of 9

2006 Ends with Fire Deaths at Historic Low

Spring Fire Safety Blitz in Americus

Georgia finished 2006 with 96 fire fatalities, the first time in a decade the number has been under 100.
Coupled with population growth, the percentage of Georgians who have died in fires has continuously fallen from a high in 1995, the year Commissioner Oxendine took office, to this year's low.
"One of the first things I did when I took office was to reinstate the Fire Safety Education Division," said Oxendine. "Since then, we have seen fire deaths in Georgia decline."
Oxendine has also credited the warm weather as being a factor in the lower

number of deaths.
"Most of our fatal fires occur with people trying to stay warm. A mild winter really does help."
As part of educating people on home space heater safety, Oxendine recently toured the state to demonstrate proper use of home heating apparatuses.
In addition to educating the public, Oxendine started a program more than ten years ago to provide free smoke alarms to people who cannot afford them. Since that time, his office has given away over 130,000 smoke alarms across Georgia. P

Americus Fire and Emergency Services with support of the Georgia Firefighters Burn Foundation will be hosting the 2007 Spring Blitz March 21st-23rd.
The Blitz will cover three counties with a goal of reaching out to some very rural counties that have never had any form of fire safety education.
These few days are going to be very busy, so Americus Fire and Emergency Services is requesting some help.
If you have any questions or would like to volunteer, please contact Captain Jeremy Martin at (229) 924-1385 or via e-mail at jeremy.martin@americusonline.com.
It's always a fun time helping to educate the children and adults on fire safety.
Please come join us for a wonderful few days of adventure and camaraderie. P

Volunteers Needed for Child Safety Seat Inspections

Commissioner Oxendine's Education Department and 21st Century are looking for volunteer techs for child safety seat checks in four Georgia locations Dalton, Macon, Columbus and Augusta.
At least 20 Certified Techs will be needed for each event. Any Certified Techs interested in volunteering can contact Shirley Lasseter at 404-6570831 or by email at shirley.lasseter @mail.oci.state.ga.us.

The first of these will be held Saturday April 14th in Dalton and the next scheduled one will be on Saturday April 28th in Macon.

available for pictures. P

The events will be open from 10:00 a.m. to noon and should end around 1:30p.m..

Erik Estrada, star of the hit television series CHiPs and celebrity spokesman for the safety seat checks, will be present at all events in Georgia and

January 2007 INSURANCE & SAFETY FIRE REPORT Page 7 of 9

DOI Employees Receive Faithful Service Awards

Several employees of the Department of Insurance were recently honored with Faithful Service Awards for their long dedication and service to the people of Georgia.

Brenda Wright - 20 Years

Penny Tanner - 10 Years

"It is important to us to have an experienced staff to handle the complicated issues that arise in the industries we regulate," said Commissioner John Oxendine. "I commend these eight individuals for their more than 100 years of service to the citizens of Georgia."

The employees receiving recognition and the division in which they currently serve include:

Brenda Powell - 25 Years Janice Wesley - 15 Years

Sherrie Clark - 5 Years Wanda Butler - 25 Years



Dan Rimmey, Regulatory

Services: 5 years



Sherrie Clark, Safety Fire:

5 years.



Yibai Lu, Engineering and

Inspections: 10 years



Penny Tanner, Public

Education: 10 years



Janice Wesley, Regulatory

Services: 15 years



Brenda Wright,

Enforcement: 20 years



Wanda Butler, Public

Education: 25 years



Brenda Powell,

Regulatory Services: 25

years

Dan Rimmey - 5 Years

Yibai Lu - 10 Years

Employees are recognized for the cumulative amount of time they have served in state government, not just with the Department of Insurance. P

January 2007 INSURANCE & SAFETY FIRE REPORT Page 8 of 9

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Commissioner Oxendine inspects homes in Coweta County the morning after tornados cause $2.5 million in damage.
The storm, which produced the severe weather, came through Georgia the evening of Sunday, January 7, 2007.

The Department of Insurance Welcomes
New Employees

Commissioner Oxendine welcomes the

following new employees to the Depart-

ment of Insurance:

Name

Division

Don Allen Michelle Carroll Gregory Eaves Rob Evans Ron Jackson Robert Parker Leonetta Reid
Allyson Trovato

Enforcement Executive Safety Fire Executive Executive Safety Fire Consumer Services Executive

January 2007 INSURANCE & SAFETY FIRE REPORT Page 9 of 9