Capital Steps
Commissioner John W. Oxendine
July-August 2007 Vol. 1, Issue 5
In This Issue
College Bound! (Cover Story)........................................................................3
New Regulations Signed to Protect Soldiers.....................................................4
Annual Hurricane Expo in Savannah Draws Crowds; Teaches Folks About Safety......................................................5
2007 Session of the General Assembly..............................................................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.
Insurance Briefs..............................................................................................6 Actions Against Agents..................................................................................7 Workshops to Help Communities Address Youth Firesetting............................8 Support Sought as Annual Awards Luncheon Nears........................................9 Fire Safety Educators Raise $700 in Silent Auction........................................9 Safety Education Division Empolyees Attend New GPSTC Fire and Life Safety Course........................................................10 Butler Elected GPSEA Secretary/Treasurer......................................................10
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
Send questions or comments to inscomm@oci.ga.gov
College Bound! College Freshmen and Their Parents Often Face New Challenges Making Decisions on New Insurance Needs
Check with your insurer about how your policy defines what's considered full-time for a student, and the maximum age they can be covered. Make sure you know which doctors and facilities in your area are covered under your insurance. Also, always have a copy of relevant insurance cards and know how to get approval for medical coverage before seeking treatment.
Students who don't have health insurance through a parent's health insurance policy, or who have limited coverage due to network service areas, may buy a student health insurance plan. Student plans are sold by an insurer that has contracted with a college to offer coverage to its students. In general, these plans have more limited benefits and more exclusions than traditional health insurance plans. For example, most student plans have limited catastrophic coverage of $50,000 per accident or illness. Many policies also will exclude routine examinations and injuries sustained while under the influence of alcohol or drugs.
Renter's insurance is another area that students and their families should be looking at.
W ith college classes starting up, many new students are acclimating themselves to the challenges that come with their first college experience. Among the many things needed to prepare for the transition, many students and their parents overlook the importance of insurance needs for their students. Generally, questions arise most when dealing with health and renter's insurance.
Health insurance can be confusing to many parents and their college bound children.
Commissioner Oxendine says, "Insurance is not real important for the little, bitty stuff. Everybody gets the flu from time to time. What you need insurance for is for the bad stuff that happens. The unexpected, and that's what the (school) clinic is generally not able to handle."
"Remember, renter's insurance only protects your personal property," states Oxendine. "Never assume that the landlord's insurance covers you or your belongings. Landlord's insurance only protects the building."
In maintaining their own residence, students must realize that they are liable for things that happen on their premises. Students should bear in mind they could be held legally responsible for the actions of anyone who drinks in their home and then has an accident at the party or after leaving it.Arenter's policy should provide protection against lawsuits due to these types of liability issues.
Finally, it is important that each unrelated roommate has their own policy to cover them and their own possessions. Renter's insurance is designed for single individuals and traditional families.
For more information, you can contact the Insurance and Safety Fire offices toll free at 800-656-2298. J
July-August 2007 INSURANCE & SAFETY FIRE REPORT Page 3 of 10
New Regulations Signed to Protect Soldiers
Commissioner Oxendine announced on August 31 that Georgia is one of the first states to adopt new regulations to protect military recruits from deceptive or misleading life insurance sales practices or products.
Oxendine carefully coordinated the Military Sales Practices Regulation with DOD to ensure consistency with Army and DOD policy. Col. Cayce said the regulation provides meaningful protections for armed forces personnel that will
improve their lives.
"Investigations by my office
Col. Cayce thanked
showed the need for
Commissioner Oxendine for
improved regulations to
his leadership and for his
protect our servicemen and
efforts to protect soldiers
women from being
from abusive insurance
scammed by unscrupulous
agents, and stated that
insurance agents," Oxendine
"Commissioner Oxendine
said. "Soldiers who would
was the person most
soon be risking their lives in
responsible for helping Fort
the service of our country
Benning Command obtain
were being sold
relief for thousands of Fort
inappropriate or nearly
Benning soldiers previously
worthless policies."
victimized by unscrupulous
life insurance agents."
The new regulation, 120-2-
95, requires insurers that
Col. Lyle Cacey and Commissioner John Oxendine
He also noted that
market products with a "side" or savings fund to demonstrate Commissioner Oxendine's leadership during joint state and
suitability for junior enlisted service members in pay grades federal investigation led to a settlement with one company
E-4 and below. Also, certain product features are prohibited that had targeted soldiers with abusive and illegal tactics,
altogether, regardless of suitability. These include deceptive resulting in a settlement that potentially could provide up to
interest crediting methodologies and automatic premium $70 million in refunds for military personnel. Col. Cayce
payment provisions, which divert accumulations from side observed that the relationships betweenArmy officials and
funds to pay for the life insurance in the event of default. the Commissioner and his staff were a model for state and
federal agency cooperation elsewhere.
"The adoption of these regulations is a crucial step in making
sure the members of the military are protected from abusive Oxendine spearheaded the investigation into sales of certain
sales practices and provided the highest quality insurance life companies and their agents when marketing policies and
products," Commissioner Oxendine said.
other financial products to active duty servicemen. Several
states subsequently joined the investigation.
The regulation also incorporates Department of Defense
solicitation rules. For example, the new regulation makes it Because of his leadership role in the investigation, Oxendine
a deceptive trade practice to solicit in barracks, day rooms testified before an oversight hearing of the U.S. Senate
and other restricted areas.
Committee on Banking, Housing and Urban Affairs in
November 2005. The committee was reviewing a GAO
Col. Lyle Cayce, the Staff JudgeAdvocate at Fort Benning report on the sale of financial products to military
who worked with the Commissioner, observed that personnel.J
July-August 2007 INSURANCE & SAFETY FIRE REPORT Page 4 of 10
Annual Hurricane Expo in Savannah Draws
Crowd; Teaches Folks About Safety
C ommissionerOxendine, the Federal Alliance for Safe Homes, WTOC, the Home Depot and the Georgia Insurance Information Service once again sponsored a Hurricane Preparedness Expo for coastal residents in the Savannah area July 14.
A host of government agencies and local businesses held workshops, demonstrations and lectures on hurricane preparedness at the Home Depot on Abercorn Extension location.
"I want to thank every agency and business, and especially the Home Depot, for working so hard to make this event a success," Commissioner Oxendine said. J
2007 Session of the General Assembly
The following Acts were passed by the General Assembly during the 2007 session
and have been signed by the Governor.
SB 84: This Act relates to enumeration of unfair methods of competition and unfair or deceptive acts or practices to protect members of the armed forces of the United States from unscrupulous practices regarding the marketing and sale of insurance. The Act amends O.C.G.A. Section 33-6-4.
Effective upon approval by the Governor.
permitted to join and receive benefits from the Georgia Insurers Insolvency Pool. The Act amends O.C.G.A. Section 33-41-20 and enacts O.C.G.A. Section 33-41-20.1.
Effective January 1, 2008.
HB 648: This Act changes the definition of long-term care insurance. The Act amends O.C.G.A. Section 33-42-4.
HB 408: This Act provides that every association and Effective upon approval by the Governor. J industrial insured captive insurance company issuing workers' compensation insurance contracts shall be
July-August 2007 INSURANCE & SAFETY FIRE REPORT Page 5 of 10
Insurance Briefs
Beware of Unlicensed Healthcare Plans
I nsurance agents are encouraged to remain alert to operations of illegal health plans. Georgia's insurance agents are the best defense for consumers targeted by these scams.
Agents should contact the Georgia Department of Insurance's Fraud Division regarding any suspicious health plan product. Unfortunately, these plans continue to operate nationally. Some have made sales in Georgia.
Georgia insurance agents have been solicited to market illegal health plans.
On other occasions, agents discover that a client has been offered such a plan by another agent, through an association, or over the internet. Know the warning signs and contact the department immediately. The Insurance Department urges you to promptly report any suspect plan to protect consumers and to preserve your professional standing. To report insurance fraud call 1-800-726-6070.
36,000 Consumers Helped; $10 Million in Claims Recovered
In the first six months of 2007, Commissioner Oxendine's Consumer Services and Managed Care Divisions had helped 36,272 Georgia consumers settle disputes with their insurance companies, returning $10,057,093 in insurance claims to these consumers -- money they might not have received without his help.
"Investigators in our Consumer Services and Managed Care Divisions work every day to help Georgians, both individual citizens and businesses," Oxendine said. "Whether the consumer has a claims dispute or simply a question about insurance, our representatives can provide invaluable expert advice."
Services Division can help with problems in life, health, auto and homeowners insurance. Consumers can call even if they just want their insurance policy explained or reviewed.
In addition to phone calls and letters, the Consumer Services Division can also take questions or complaints by email, Oxendine said. In the first six months of this year, 5687 consumers have made their initial contact via the internet. Consumers can obtain a complaint form at the Department's website at www.gainsurance.org.
Commissioner Orders Investigation of Progressive
Commissioner Oxendine issued an August 30 order for a market conduct examination into recent allegations of invasion of privacy by Progressive Insurance Company.
"Georgia policyholders should expect an open and honest relationship with their insurance company," said Oxendine. "In order to assure truthfulness within the industry, when we hear of possible wrongdoing, we have to act promptly to protect the consumer."
Oxendine ordered Progressive Insurance Company to preserve claims documents that will be part of the examination. The order states that the company "preserves all documents, data and tangible things related to all losses or claims incurred or reported involving or related to Georgia policyholders since January 1, 2003."
The examination resulted from allegations that Progressive hired private detectives to investigate its own policyholders when a claim was filed after an auto accident. The detectives allegedly posed as a married couple and joined the policyholders' church in order to gain information on the claimants. Progressive has ten days to request a hearing on the order. J
"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. Specialists in Oxendine's Consumer
Report Insurance Fraud 1-800-726-6070
July-August 2007 INSURANCE & SAFETY FIRE REPORT Page 6 of 10
Actions Against Agents
Brown, Stephaan; Conyers, Georgia 30013 Mr. Brown agreed to have his Georgia temporary resident license issued on a probationary status for a period of 12 months.
Johnson, Stanley Warren; Savannah, Georgia 31406 Mr. Johnson agreed to pay a fine in the amount of $1,500 and to have his Georgia insurance agent license issued on a probationary status for a period of 12 months.
Whaley, David; LaGrange, Georgia 30170 Mr. Whaley agreed to have his Georgia resident license issued on a probationary status for a period of 12 months.
Wilkinson, Roger A.; Evans, Georgia 30809 Mr. Wilkinson agreed to have his Georgia resident license issued on a probationary status for a period of 12 months.
Bailey, Andr; Atlanta, Georgia 30331 Mr. Bailey agreed to have his Georgia resident license issued on a probationary status for a period of 18 months.
Jones, John Pope Jr.; Augusta, Georgia 30904 Mr. Jones agreed to have his Georgia resident license issued on a probationary status for a period of 12 months.
Kotter, Michael; Phoenix, Arizona 85044 Mr. Kotter agreed to have his Georgia nonresident license issued a probationary status for a period 12 months.
Patton, Erica; Lewisville, Texas 75057 Ms. Patton agreed to have her Georgia nonresident license issued on a probationary status for a period of 12 months.
Blomquist, Blake; Acworth, Georgia 30101 Mr. Blomquist agreed to have his Georgia temporary resident license issued on a probationary status for a period of 12 months.
Diaz, Darlene; Phoenix, Arizona 85085 Ms. Diaz agreed to have her Georgia nonresident license issued on a probationary status for a period of 18 months.
Everson, Patrice N.; Atlanta, Georgia 30305 Mr. Everson agreed to have his Georgia resident license issued on a probationary status for a period of 12 months.
Gibson, Charles; Centreville, Virginia 20121 Mr. Gibson agreed to pay a fine in the amount of $300.
Plott, Melodie; Clayton, Georgia 30525 Ms. Plott agreed to have her Georgia resident license issued on a probationary status for a period of 12 months.
Powers, Donna G.; Snellville, Georgia 30039 Ms. Powers agreed to have her Georgia resident license issued on a probationary status for a period of 12 months.
Rice, Stephen M.; Tifton, Georgia 31794 Mr. Rice agreed to pay a fine in the amount of $500 and to have his Georgia resident license issued on a probationary status for a period of 24 months.
Saunders, Ralph; Glenn Allen, Virginia 23060 Mr. Saunders agreed to have his Georgia nonresident license issued on a probationary status for a period of 12 months.
Teppe, Ralph Kirk; West Chester, Ohio 45069 Mr. Teppe 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.
Joyner, Dedrick I.; Powder Springs, Georgia 30127 Mr. Joyner agreed to pay a fine in the amount of $300.
Kantor, David; Virginia Beach, Virginia 23455 Mr. Kantor agreed to have his Georgia nonresident license issued on a probationary status for a period of 24 months.
Moaveni, Babak, Marietta, Georgia 30066 Mr. Moaveni agreed to have his Georgia resident license issued on a probationary status for a period of 24 months.
Moore, Mindy N., Augusta, Georgia 30907 Ms. Moore agreed to have her Georgia resident license issued on a probationary status for a period of 12 months .
Muniz, Paul, Phoenix, Arizona 85044 Mr. Muniz agreed to have his Georgia nonresident license issued on a probationary status for a period of 12 months.
Osyczka, Steven, Phoenix, Arizona 85044 Mr. Osyczka agreed to have his Georgia nonresident license issued on a probationary status for a period of 12 months.
Toole, Patrick C.; New Orleans, Louisiana 70118
Randall, Frank, Mansfield, Texas 76063
Mr. Toole agreed to have his Georgia nonresident license Mr. Randall agreed to have his Georgia nonresident adjuster's
issued on a probationary status for a period of 12 months. license issued on a probationary status for a period of 24 months.
July-August 2007 INSURANCE & SAFETY FIRE REPORT Page 7 of 10
Workshops to Help Communities
Address Youth Firesetting
Commissioner Oxendine's Office, in partnership with the Georgia Firefighters Burn Foundation, Inc., has been working for the past year and a half to create a statewide coalition to address the problem of youth firesetting in the state of Georgia.
The Georgia Youth Firesetting Intervention Program (YFIP) is a statewide, regionally-based concept that operates on the premise that numerous community-based programs would be cost prohibitive and an unnecessary duplication of efforts.
Paul E. Reichenbach, the Director of Pennsylvania's Juvenile Firesetter Advisory Group, helped develop and implement statewide juvenile firesetter intervention programs based on a "state standard" or protocol in Pennsylvania.
Georgia is ready to kick-off a series of regional two-day Program
Development Workshops, which are designed as a resource and guide to assist individuals, communities and regional organizations in creating effective Youth Firesetter Intervention Programs.
These workshops are designed to provide those who seek to establish a YFIP in their area with the necessary tools to accomplish that goal.
The first two-day Program Development Workshop will be held Monday and Tuesday, November 1st and 2nd, 2007 at Bunten Road Park in Duluth, Georgia.
The workshop will target multidisciplinary teams from the metroAtlanta counties, which include: DeKalb, Cobb, Gwinnett, Fulton, Douglas, Clayton, Rockdale, Fayette, and Henry. Please contact the Georgia Firefighters Burn Foundation at 404320-6223 for more details.J
FIRE SAFETY HOUSE
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.
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
2007 GEORGIA FIRE FATALITIES
Fire fatalities 63
Adults
54
Children
9
Arson Hotline
1-800-282-5804
July-August 2007 INSURANCE & SAFETY FIRE REPORT Page 8 of 10
Support Sought as Annual Awards Luncheon Nears
National Fire Prevention Week is October 7-13, 2007, and the Commissioner Oxendine is planning statewide activities to promote fire safety awareness.
Anyone wishing to support the event financially or sponsor a door prize should contact Shirley Lasseter at 404-6570831. J
The theme this year is "It's Fire Prevention Week: Practice Your Escape Plan." During the week, the Insurance & Safety Fire Commissioner's Office will be hosting many statewide events.
The schedule includes the Life, Fire & Safety Awards Luncheon, Statewide Fire Drill, Excellence in Fire Safety Poster & Essay Contests, fire safety house tours and a smoke alarm distribution program.
As part of the Life, Fire & Safety Awards, 42 Georgia students from kindergarten through 12th grade will be recognized as winners of the statewide poster and essay contest and 13 students will be recognized fire safety tips calendar poster winners.
The Public Education Division of the Georgia Department of Insurance is asking for donations of children's gifts by Friday, September 14, to allow time to assemble the gift bags before the luncheon.
The children and firefighters' awards will be presented on Thursday, October 11, 2007, at the Georgia Aquarium from 11:00 a.m. 2:00 p.m. Winning participants and guests will also get special rates to tour the Georgia Aquarium.
Fire Safety Educators Raise $700 in Silent Auction
The Georgia Public Safety Educators Association raised over $700.00 in their first ever silent auction held at the Georgia Fire Safety Symposium.
The auction included many framed art works of Americana American Flags, Statue of Liberty, and those remembering the veterans of all Public Safety professions. There was also framed artwork depicting all symbols of the Fireman's profession.
The framing was donated by Larson-Juhl thanks to the efforts of Barbara Tollison. Shirley Lasseter donated all of the prints to be framed.
Other items that were donated were hand-made pottery mixing bowls from Nancy Blair; a crystal bowl from Irene Blackwell; a framed stamp collection depicting firefighters/ engines from Tollison and Judy Samuels or Crawford donated a beautiful pocket watch with the Maltese symbol on the front.
The funds raised will support the various training and educational efforts of the Georgia Fire Safety Educators Association. For questions concerning joining the GPSEA, please contact President, Charles Sims at csims@alpharetta.ga.us or James Wise at jwise@sfm.ga.gov. J
July-August 2007 INSURANCE & SAFETY FIRE REPORT Page 9 of 10
Safety Education Division Employees Attend
New GPSTC Fire and Life Safety Course
T he Georgia Public Safety Training Center kicked off their inaugural Fire and Life Safety One course, a new program which is offered to all interested and qualified individuals working in the field of fire safety.
Several members of the Department of Insurance's Safety Fire Education Division took part in the pilot course which was held June 11-15 and taught by Beverly Walker, Rita Smith and Chad Arp.
Topics included the importance of fire and
life education, the breakdown of the com-
munication and learning process, and the
public relations process. At the end of the week, each student was required to make a presentation to the class.
Commissioner Oxendine said "I am proud
Photo from: left to right Alvin Fletcher, Training for Child Care INC. Kimberly Anderson, Camilla Fire Dept., William Wright, Hall Co. EMA Coordinator, Chele Swartz, Crawford Co. Fire Dept., Rita Smith Rome, Fire Dept., Judy Samuels, Crawford Co. Fire Dept., Beverley Walker, Hall Co. Fire Services, Penny Tanner, State Fire Marshal's Office, Greg Norton, State Fire Marshal's Office, Steve Born, Carroll Co. Fire Services, Rodney Pickle, Educator, GPSTC., Michael Coffee, Hall Co. Fire Services, Shirley Lasseter, State Fire Marshal's Office.
that three of my employees took the initia-
tive to be involved on the first important round of this class. In fact I am really proud of all of the Fire Safety Educators."
To sign up for future classes, contact Rodney Pickle at (478) 993-4670. J
Butler Elected GPSEA Secretary/Treasurer
Wanda Butler, part of the Public Education team in the Department of Insurance's Safety Fire Division, was recently announced as the newly elected Secretary/Treasurer of the Georgia Public Safety Educator's Association (GPSEA).
"I am extremely proud to have a member of my staff who are willing to take on a higher level of commitment to provide Georgia citizens with tools they need to be safe in the event of a fire," said Commissioner Oxendine. "Wanda Butler is a true asset to our Safety Fire Education team." J
July-August 2007 INSURANCE & SAFETY FIRE REPORT Page 10 of 10