Performance Details
Department of Commerce, Community, and Economic Development - Insurance Operations
Mission
Regulate the insurance industry to protect Alaskan consumers.
Core Services
- Licensing
- Compliance
- Investigations
- Rates and Forms
- Consumer Services
Mission Results |
Core Services |
||||||||||
|
| ||||||||||
Mission Results |
Core Services |
||||||||||
|
|
Performance Detail
A: Result -Insurance companies and persons transacting insurance comply with Alaska laws and are financially solvent. |
A1: Core Service - Licensing |
Target #1: 80 percent of insurance company applications processed and licenses issued within 60 days..
The review of applications from new insurance companies seeking to do business in Alaska is an important responsibility for the Financial Examinations section. Completing the approval process for these applications in a timely manner fosters a competitive market and insurance options for Alaskan consumers. Target Last Modified: 11/14/2023 |
Target #2: Producer applications processed within 10 days..
Target Last Modified: 11/27/2023 |
A2: Core Service - Compliance |
Target #1: 100 percent of financial examinations of domestic insurance companies are completed every three years..
One full-scope examination of domestic insurers was slated for completion in FY2023: Umailik Insurance Company. The examination was completed by the statutory deadline of June 30, 2023, and within the NAIC"s 18-month accreditation guidelines. The division also monitors the financial solvency of domestic insurers through quarterly and annual financial statements, annual audited financial statements, actuarial opinions, and other financial filings. All financial statements and filings are reviewed and analyzed in a timely manner. The division communicates regularly with all domestic companies regarding examinations, financial analyses, and other regulatory matters. Target Last Modified: 11/14/2023 |
Target #2: Perform market conduct examinations, analyses, and investigations in order to resolve compliance, market conduct and access issues..
The Division of Insurance performs its own market conduct examinations and participates in multi-state examinations, which are collaborative examinations among jurisdictions. Examinations range from review of sales materials and advertising content and practices to use of approved rates, forms, and claims practices, to the use of agent training. The process may involve checking publicly available information, information companies provide to the National Association of Insurance Commissioners or other state governments, direct communication with the company or other states, and onsite visits, including review of documents and creation of reports. Market regulation is expanding beyond using market conduct examinations as the primary method of resolving market conduct issues. Beginning in FY2012, the division began collecting data on other types of market regulatory activities in addition to market conduct examinations. The high number of activities in FY2013 was in response to Bulletin B12-02, which required insurers to submit information on associations to validate that the associations are eligible for group insurance under Alaska law. Premium Tax Audits are a targeted market conduct examination performed on surplus lines brokers. The issues reviewed are their filing of quarterly reports and the subsequent payment of premium taxes and filing fees as well as diligent search efforts, disclosure and notification requirements for using a non-admitted insurer, and prompt delivery of material facts to insured. There were five premium tax audits completed in FY2023. These examinations were incorporated into the chart for the first time in FY2019. Target Last Modified: 11/14/2023 |
A3: Core Service - Investigations |
Target #1: 75 percent of investigations and consumer complaint cases approved by the director are completed within one year..
In FY2023, Consumer Services and the Investigations section successfully pursued consumer protection cases. The efforts resulted in Consumer Services recovering through the complaint filing process $483,383.19 for Alaskan consumers. The Consumer Services and Investigative section consider the investigation of producer misrepresentation a priority because of the potential harm this type of fraud represents for Alaska consumers. The Investigations section in FY2023 successfully pursued cases for criminal prosecution and administrative actions, resulting in four convictions in Alaska District Court, the submission to the Department of Law of four cases for prosecution, five criminal and civil referrals to other agencies and other state insurance departments the filing of four disciplinary licensing actions, $602,114 in fines collected/recovered funds and 13 warning letters to subjects of investigations. The Consumer Services section actively monitors consumer complaints for problematic market conduct trends. In FY2023 Consumer Services responded to more than 1,200 consumer inquiries, complaints, and external healthcare reviews. Target Last Modified: 12/01/2023 |
B: Result -Competitive, up-to-date insurance products are available to Alaskan consumers. |
Target #1: 70 percent of rate and policy form filing approvals completed within 30 days..
The complexity of insurance products available today and the time required to review and approve these products have significant impacts on staff specialists. Greater numbers of confidentiality requests extended response times. The division aims to respond to a filing or filing objection within 30 days for 90% of filings. The division"s first action, either approving the filing or sending an objection letter, occurred within 30 days 97.5% in FY2023 of all filings. In FY2023 the first action occurred within 30 days for 98.1% of life/health filings and for 97.3% of property/casualty filings. When the division requests additional information or changes to a rate or form filing, an insurer has 30 days to respond, and the filing is disapproved for use until adequate amendments have been made. Target Last Modified: 11/27/2023 |
B1: Core Service - Rates and Forms |
Target #1: The top five insurers share 65 percent or less of the property and casualty market..
Target Last Modified: 11/14/2023 |
B2: Core Service - Consumer Services |
Target #1: Identify and provide needed consumer resources on emerging and general insurance-related topics..
The consumers` webpage on the division website has received many updates including guides related to Dental Insurance, Short Term Health Insurance, Flexible Spending Accounts, Health Savings Accounts and Health Reimbursement Arrangements (HRAs). The Division drafted an alert to consumers to encourage awareness of fake health insurance offerings. The Disaster Preparedness and Your Insurance web pages received updated content. The division also provided content for the department`s social media page concerning wildfires, seasonal ice damming/snow melt, flooding along the Kuskokwim River in 2023, as well as flooding in the aftermath of Typhoon Merbok. The Division added a complaint page specifically for medical providers which includes resources and a complaint form. Related links: Target Last Modified: 11/30/2023 |
Target #2: Six outreach programs conducted annually..
Target Last Modified: 11/27/2023 |
Last refreshed: 03/28/2024 05:00 pm