Insurance and safety fire report, 2007 March-April

Capital Steps

Commissioner John W. Oxendine

March-April 2007 Vol. 1, Issue 3
In This Issue

Podcasting (Cover Story).......................................................3

Insured Damages from Tornadoes Top $210 Million...................4

NAIC Tracks Top Consumer Complaints.................................4

Most Americans Unprepared for Disability.................................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.

Hurricane Expo........................................................................5
Actions Against Agents..........................................................6
Adel Agents Arrested...............................................................7
Beware of Medicare Scams.....................................................7
Spring Cleaning: Don't Overlook Dryer Vents..........................8
DOI Employees Get New Email Addresses.............................9
Welcoming New Employees......................................................9
Upcoming State Holidays..........................................................9
John W. Oxendine
Georgia Insurance and Safety Fire Commissioner 2 Martin Luther King, Jr. Dr., West Tower, Atlanta, GA 30334 404-656-2056 www.gainsurance.org inscomm@oci.ga.gov 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

Jason Shepherd, INSURANCE & SAFETY FIRE REPORT Editor

PODCASTING
Commissioner offers insurance advice for download

Once the sole domain of underground rock bands looking for exposure and would be political analysts seeking to add audio commentary to their blogs, podcasting has in the last couple of years hit the mainstream.

Today, everyone from talk radio hosts to major corporations have begun to offer podcasts allowing anyone to download and listen to the information or music they want to hear, anytime they want to hear it.

In March, Insurance Commissioner John Oxendine entered the arena of this innovation in communication by adding podcasting to the Department of Insurance's website, www.GaInsurance.org.

"I am always looking for new and inventive ways to reach out to consumers and assist them with there problems," said Commissioner Oxendine. "I believe podcasting has the potential to become an important medium for the department to communicate with consumers across Georgia."

Podcasting is a way to receive audio files over the Internet. Many content providers, including the Department of Insurance, offer podcast feeds at no cost. For those who have never signed up for a podcast and are not familiar with the process, it is simple to get started. These feeds deliver audio broadcasts to the computer desktop. Individuals can listen to these files on their computer or load them on a MP3 player.

To get started, all an individual needs to do is download the podcasting software. The free software is available to download and links to various software programs designed to work with certain operating softwares (Microsoft Windows, Mac OS, Unix, etc.) can be found on the department's website.

The department will update podcasts several times a month with Commissioner Oxendine discussing insurance and fire safety issues.

Once the software is downloaded and installed, then simply add one of the podcast feeds. The podcasting software will automatically check for updates and download the new files to your computer when they become available.

To sign up for the new podcasts, visit www.gainsurance.org/ PUBLICINFORMATION/pod.aspx P

March-April 2007 INSURANCE & SAFETY FIRE REPORT Page 3 of 9

Insured Damages from March 1 Tornadoes Top
$210 Million

NAIC Tracks Top Consumer Complaints

Commissioner Oxendine has estimated damage costs from March 1 storms that ripped through southwest and middle Georgia to have topped off at $210 million in insured losses, making it the state's worst storm disaster.

Recent statistics show that while consumer complaints decreased for the third consecutive year, the reasons behind those complaints have remained relatively the same for the past five years.

The losses exceeded $150 million caused by tornadoes in Dunwoody, GA, northeast of Atlanta in 1998.
The state's worst disaster in terms of property damage was in 1994 when an estimated $500 million in damage was caused by flooding in southwest Georgia.
Nine people were killed in the March 1 storms, including two in Sumter County and six in Baker County farther south.
Most of the damage was in Americus and surrounding Sumter County. Insured damages exceeded $100 million, the commissioner said. The losses, including extensive damage to Sumter Regional Hospital, which was closed by the tornado, was greatest in that county and Columbus because the areas hit were largely developed.
The second hardest hit area was Columbus, at $25 to $30 million.
Dozens turned out for Town Hall Meetings with Commissioner Oxendine held March 27 in Columbus and April 17 in Americus.
Staff from Commissioner Oxendine's office were there to talk face-to-face with those who needed extra help with their claims.
The commissioner said the damage to the hospital in Americus was by far the largest single insurance claim. P

According to data collected by the National Association of Insurance Commissioners (NAIC), the top three reasons consumers filed formal complaints against their insurance companies in 2006 were delays, denials of claims and unsatisfactory settlement offers. Rounding out the top five sources of consumer complaints were policy cancellations and premiums/insurance rating issues.

Aggregate data can be accessed on the NAIC's web site through the Consumer Information Source link. By accessing this program, consumers can obtain company-specific complaint ratios, as well as aggregate counts of complaints by state and by type of coverage for specific companies.

Below is a chart detailing the top five types of complaints for 2006. The chart includes the total number of complaints (for complaint type and line of coverage), followed by the percentage of overall complaints each type represents. (Example: "Delays" make up 21.9 percent of all complaints received by the NAIC in 2006.)

Top 5 Types of Complaints in 2006

Delays Denial of Claim Unsatisfactory Settlement/Offer Cancellation Premium & Rating

Total # Percentage 41,647 21.9% 35,601 18.7% 26,556 13.9% 12,467 6.5% 11,253 5.9%

March-April 2007 INSURANCE & SAFETY FIRE REPORT Page 4 of 9

Survey Shows Most Americans Unprepared for Financial Impact of Disability

Commissioner Oxendine said a recent survey by the National Association of Insurance Commissioners (NAIC) indicates that most Americans are not prepared to deal with the possibility of becoming disabled and unable to work.
More than half (56 percent) of U.S. adults say they would be unable to pay their bills or meet expenses if they became disabled and could not work for a year or longer, according to a January NAIC national consumer survey.
The survey showed consumers have an optimistic picture of their future, with only 13 percent saying it was somewhat or very likely they would become disabled. However, data from the Social Security Administration (SSA) indicates that a substantial portion of the nation's population 20 percent will actually become disabled for a year or more before reaching age 65.
"These findings highlight the need for long-term disability insurance," Oxendine said. In the NAIC survey, only 44 percent of respondents indicated they had long-term

disability coverage. Of these individuals, 71 percent said their long-term disability insurance was employer provided rather than individually purchased. This suggests a significant number of people could lose their coverage in the event of a change in employment status.
"Many people don't think about the impact of becoming disabled can have on their ability to earn a living and remain financially independent," Oxendine said. "Understanding the role of disability insurance at each life stage is important to a family's total financial security."
The Commissioner has posted consumer information about disability insurance on the Insurance Department web site, www.gainsurance.org, under the "Insure U" banner.
"Before purchasing any disability policy, consumers should check with our Consumer Services Division at 404-6562070, or 1-800-656-2298, to make sure the company offering the coverage is legitimate, solvent and authorized to do business in Georgia," Oxendine said. P

March-April 2007 INSURANCE & SAFETY FIRE REPORT Page 5 of 9

Actions Against Agents

Anderson, Elvis Decatur, Alabama Mr. Anderson agreed to pay a fine in the amount of $300.
Benard, Naim Elberton, Georgia Mr. Benard agreed to have his Georgia resident license issued on a probationary status for a period of 12 months.
Bradley, Byron Phoenix, Arizona Mr. Bradley agreed to pay a fine in the amount of $500 and to have his Georgia nonresident license issued on a probationary status for a period of 12 months.
Caldwell, Rasheedah Macon, Georgia Ms. Caldwell agreed to pay a fine in the amount of $300.
Ciccio, Katrina Augusta, Georgia Ms. Ciccio agreed to pay a $300 fine and have her Georgia resident license issued on a probationary status for a period of 12 months.
Clark, Jonathan Amarillo, Texas Mr. Clark agreed to pay a fine in the amount of $300 and to have his Georgia nonresident license issued on a probationary status for a period of 12 months.

Rodriguez, Sandra Santa Ana, California Ms. Rodriquez agreed to pay a fine in the amount of $300 and to have her Georgia nonresident license issued on a probationary status for a period of 12 months.
Vivian, Liane Duluth, Georgia Ms. Vivian agreed to have her Georgia resident license issued on a probationary status for a period of 12 months.
Amerson, Almetia Lithonia, Georgia Ms. Amerson agreed to have her Georgia resident license issued on a probationary status for a period of 24 months.
Fisher, John West Des Moines, Iowa Mr. Fisher agreed to have his Georgia nonresident license issued on a probationary status for a period of 24 months.
George, Jerrell Mobile, Alabama Mr. George agreed to have his Georgia nonresident license issued on a probationary status for a period of 12 months.
Haefner, Tracy Chesterfield, Missouri Ms. Haefner agreed to have her insurance agent license issued on a probationary status for a period of 12 months.

Fonte, Richard Riverview, Florida Mr. Fonte agreed to have his Georgia nonresident license issued on a probationary status for a period of 12 months.

O'Brien, Michael Quincy, Illinois Mr. O'Brien agreed to have his Georgia nonresident license issued on a probationary status for a period of 12 months.

Harris, Bradley Jacksonville, Florida Mr. Harris agreed to pay a fine in the amount of $300.
Hunter, Khalimah Savannah, Georgia Mr. Hunter agreed to have his Georgia resident subagent license issued on a probationary status for a period of 12 months.
Johnson, Matthew Roswell, Georgia Mr. Johnson agreed to pay a fine in the amount of $300.
Link, Edward Mooresville, Indiana Mr. Link agreed to pay a fine in the amount of $300.
Newman, Ralph Michael Atlanta, Georgia Mr. Newman agreed to have his Georgia resident license issued on a probationary status for a period of 12 months.
Richardson, Kelly Atlanta, Georgia Ms. Richardson agreed to have her Georgia temporary resident license issued on a probationary status for a period of 12 months.

Smith, Carly Amarillo, Texas Ms. Smith agreed to pay a fine in the amount of $300 and to have her Georgia nonresident license issued on a probationary status for a period of 12 months.
Wanjiru, Gillian Austell, Georgia Ms. Wanjiru agreed to have her Georgia resident license issued on a probationary status for a period of 24 months.
White, Kevin Stone Mountain, Georgia Mr. White agreed to have his Georgia resident license issued on a probationary status for a period of 12 months.
Young, Shahron Riverdale, Georgia Mr. Young agreed to have his Georgia temporary resident license issued on a probationary status for a period of 12 months.
Zion, Carmillia Atlanta, Georgia Ms. Zion agreed to have her Georgia resident limited subagent license issued on a probationary status for a period of 12 months.

Note: The actions listed above 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.

March-April 2007 INSURANCE & SAFETY FIRE REPORT Page 6 of 9

Fraud Unit Arrests Two Adel Agents for

Defrauding Seniors

Two Adel, GA insurance agents have been arrested for "I have zero tolerance for any kind of insurance fraud, and

allegedly conspiring to defraud elderly consumers by signing the additional factor of committing crimes against the elderly

them up for health coverage without their knowledge.

makes this case especially heinous," Oxendine said.

Shannon Del Vick, 35, and

Insurance Commissioner

Cecil Wayne Ade, also 35, both worked for ING/Old World Finance in Adel, Ga. They were charged with

"I have zero tolerance for any kind of insurance fraud."
-John Oxendine

John Oxendine said eight victims had been identified in the Albany area.

one count each of

"Our investigation into these

conspiracy to commit the crimes of insurance fraud, forgery, crimes is continuing," Oxendine said, "and we expect more

and exploitation of an elderly person.

victims to be discovered in the coming weeks."

The pair allegedly signed up unwilling consumers and even deceased individuals, gleaning personal information from Medicare Part D forms already on file in their agency.

Commissioner Oxendine's Fraud Unit worked with the Dougherty County District Attorney's office in the investigation. P

Oxendine Warns Georgians to Beware of Medicare Scams

Commissioner Oxendine said his office has received complaints from consumers about scam artists, some selling door-to-door, who have tried to take advantage of confusion surrounding the Medicare Prescription Drug coverage benefit.
"Make sure anyone who tries to sell you one of the Medicare Prescription Drug Plans is a legitimate, licensed insurance agent before you give him or her any money or personal information," Oxendine said. "A real agent will make an appointment to see you, and will let you have time to go over the policy and get back to them; be wary of highpressure tactics."
Private insurance companies are selling the new Medicare Prescription Drug Plans (PDPs) which have been approved by Medicare. Since there are millions of people eligible for the program, the potential exists for more fraudulent sales activity.
"To avoid being a victim, verify before you buy," Oxendine said. The Commissioner offered the following tips to consider when being solicited for drug plan policies:

Check with Oxendine's office to make sure a sales person is a licensed agent. Call 404-656-2070, or toll-free at 1-800-656-2298, from 8 a.m. to 7 p.m., Monday through Friday.
Beware of door-to-door salespeople. Agents cannot solicit business at your home without an appointment.
Do not give out personal information, such as Social Security, bank account numbers or credit card numbers to anyone you have not verified to be a licensed agent. Sales representatives are not allowed to request such personal information in their marketing activities. Once you decide to purchase a plan and have verified that the agent is licensed, you may give the agent personal information to assist in enrollment and billing.
Verify that the plan is an approved Medicare plan. All of the approved plans are available at www.medicare.gov or you can call 1-800-MEDICARE.
If you suspect fraud, call the U.S. Department of Health and Human Services Inspector General at 1-800-HHS-TIPS. P

March-April 2007 INSURANCE & SAFETY FIRE REPORT Page 7 of 9

Spring Cleaning: Remember, Don't Overlook Clothes Dryer Vents
Safety Fire Commissioner John Oxendine and the State Fire Marshal's Office encourages citizens to pay particular attention to lint buildup in clothes dryer vents and in the exhaust ducts.
In 1998, the US Consumer Product Safety Commission reported that clothes dryers were associated with 15,600 fires, resulting in 20 deaths and 370 injuries
To help prevent fires from occurring:

FIRE SAFETY HOUSE
With summer fairs and festivals approaching don't forget to put in your request to have the Fire Safety House visit your community to teach the importance of fire safety.
For more information, contact Greg Norton at 404-657-0831 or gnorton@sfm.ga.gov.

Clean the lint screen/filter before or after drying each load of clothes. If clothing is still damp at the end of a typical drying cycle or drying requires longer times than normal, this may be a sign that the lint screen or the exhaust duct is blocked.
Clean the dryer vent and exhaust duct periodically. Check the outside dryer vent while the dryer is operating to make sure exhaust air is escaping. If it is not, the vent or the exhaust duct may be blocked. To remove a blockage in the exhaust path, it may be necessary to disconnect the exhaust duct from the dryer. Remember to reconnect the ducting to the dryer and outside vent before using the dryer again.
Clean behind the dryer, where lint can build up. Have a qualified service person clean the interior of the dryer chassis periodically to minimize the amount of lint accumulation. Keep the area around the dryer clean and free of clutter.

ON THE WEB
GA Public Safety Training Center www.gpstc.georgia.gov
GA Firefighters Burn Foundation www.gfbf.org
GA State Firefighters Association www.gsffa.org
Federal Alliance for Safe Homes www.flash.org
GA Public Safety Ed. Assoc. www.geocities.com/gpsea2001

Replace plastic or foil, accordion-type ducting material with rigid or corrugated semi-rigid metal duct. Most manufacturers specify the use of a rigid or corrugated semi-rigid metal duct, which provides maximum airflow. The flexible plastic or foil type duct can more easily trap lint and is more susceptible to kinks or crushing, which can greatly reduce the airflow.
Take special care when drying clothes that have been soiled with volatile chemicals such as gasoline, cooking oils, cleaning agents, or finishing oils and stains. If possible, wash the clothing more than once to minimize the amount of volatile chemicals on the clothes and, preferably, hang the clothes to dry. If using a dryer, use the lowest heat setting and a drying cycle that has a cooldown period at the end of the cycle. To prevent clothes from igniting after drying, do not leave the dried clothes in the dryer or piled in a laundry basket.P

2007 GEORGIA FIRE FATALITIES

Fire fatalities 29

Adults

24

Children

5

Arson Hotline
1-800-282-5804

March-April 2007 INSURANCE & SAFETY FIRE REPORT Page 8 of 9

Department of Insurance Employees Get New Email Addresses

Department of Insurance Welcomes New Employees

The department has initiated new email addresses for all The Department of Insurance welcomes the following new

employees.

employees to our team.

New email addresses for each employee will be determined by the Division to which they are assigned. Employees in Insurance and Industrial Loan Divisions will have @oci.ga.gov as the suffix and those employees in the Safety Fire Division will have @sfm.ga.gov as their suffix.
Email address will contain the first initial of the person's first name and the last name with either @oci.ga.gov or sfm.ga.gov. (Example: asmith@oci.ga.gov or asmith@sfm.ga.gov). P

George Gaston Consumer Services
Leonard Turner Safety Fire/Manufactured Housing
Natalie Redding Fiscal Division
Yolanda Evans Fiscal Division

Calendar

State offices will be closed on the following days in 2007:

April 23

Confederate Memorial Day

May 28

Memorial Day

July 4

Independence Day

September 3 Labor Day

October 8 Columbus Day

November 12 in lieu of Veterans Day

originally November 11th.

November 22 ThanksgivingDay

November 23 in lieu of Robert E. Lee's Birthday

originally January 19th.

December 24 in lieu of Washington's Birthday

originally February 19th.

December 25 Christmas Day

March-April 2007 INSURANCE & SAFETY FIRE REPORT Page 9 of 9