Peg Brown is the Chief Deputy Commissioner for the Colorado Division of Insurance. When she announced her retirement to the Rocky Mountain Association of Public Insurance Adjusters (RMAPIA) this week, I was saddened. It is my impression that Peg is at her best with passion and experience that will truly help Coloradans and the Colorado insurance market. I wouldn’t have felt this way a decade ago. However, over the years I have come to appreciate Peg’s views and proactive efforts to improve insurance for all. She will be missed.
Pictured above is by Peg Brown and Bobbie Baca, Director of Consumer Services. They spoke about the department̵
7;s current agendas and issues facing them. They also solicited participation and input from various stakeholders in Colorado’s insurance market. They specifically addressed the various initiatives around fires and how they worked with other state regulators facing similar issues. The presentation and discussion were refreshing and thought provoking.The insurance industry is complex. It is challenging to navigate, especially for policyholders who have limited knowledge of the various regulations and processes. State insurance regulators play a critical role in protecting these policyholders. My experience is that if we actively engage with these departments, educate and work together, we can promote better policyholder regulation and oversight that protects the interests of policyholders across the country.
It is important for everyone to understand some of the critical missions of state insurance departments:
- Licensing and Regulation: State insurance departments are responsible for ensuring that insurance companies, agents and brokers have the necessary licenses and meet statutory standards. They monitor the financial solvency of insurance companies and ensure that claims can be paid when necessary.
- Consumer Education and Outreach: These departments offer valuable resources to help consumers make informed decisions about their insurance coverage. They provide information on different types of insurance, policy terms and guidelines for comparing prices and coverage options.
- Consumer Assistance and Grievance Resolution: State insurance departments act as a support system for consumers, answering questions and providing guidance on insurance-related issues. They investigate and resolve complaints against insurance companies, agents or brokers and take appropriate enforcement action when necessary.
- Enforcement of Insurance Laws and Regulations: These departments are responsible for enforcing state insurance laws and regulations. They protect consumers from unfair or misleading claims, insurance and solicitation practices by monitoring company activities, conducting audits, market research and taking legal action against violators.
- Monitor and approve insurance rates and forms: State insurance departments review and approve insurance rates and policy forms to ensure fairness, reasonableness and compliance with state regulations. This oversight protects consumers from excessive or discriminatory prices and ensures that policies provide adequate coverage.
- Advocating for Consumer Interests: State insurance departments often advocate for consumers’ interests in insurance-related matters. They can propose or support legislative and regulatory changes that protect consumer rights and encourage fair competition in the insurance market.
- Disaster Response and Recovery: In the aftermath of natural disasters or other emergencies, state insurance departments play an important role in coordinating insurance industry response and recovery. They assist policyholders with claims, provide information on disaster-related insurance issues and monitor the industry’s ability to handle increased claims.
- Promote transparency and competition: State insurance departments work to increase transparency and competition in the insurance market by collecting and distributing data on insurance prices, insurance offerings and company performance. This information empowers consumers to make informed decisions and stimulates competition between insurance companies.
This is a big job. Most state insurance departments are vastly underfunded and do not have enough regulators to fully complete all of these missions. Without input from policyholders and other policyholder advocates, my experience is that many departments simply do not take a proactive approach to initiating pro-consumer agendas. So here are some ways to get involved and make a difference:
- Stay informed: Stay up to date with the latest rules, guidelines and insurance news in your country. Knowledge is power, and being well-informed allows you to provide valuable input and advocate for positive change.
- Communicate with State Officials: Establish open lines of communication with your state insurance department. Share your experiences, concerns and suggestions with officials to help them better understand the challenges policyholders face and identify potential areas for improvement.
- Attend Public Hearings and Meetings: Attend public hearings, meetings, and other events organized by state insurance departments. These events offer opportunities to express your views, learn from others and gain insight into the decision-making processes that shape insurance regulations.
- Join or form policyholder interest groups: Connect with insurance consumers to form or join policyholder interest groups. Public adjusters and restoration contractors should ensure that their associations actively engage in a respectful dialogue with regulators about issues in the field that adversely affect policyholders. By respectfully collaborating and pooling resources, you can amplify your voice and influence to advance policyholder compliance and compliance. I use the word “respectfully” because after talking to many regulators, many have told me they feel like a “punching bag” by those who don’t listen and just want to attack them hard.
- Spread awareness: Educate your customers, friends and the media about the importance of consumer protection missions and the roles I listed above for state insurance departments. Encourage them to get involved and build a community of informed policyholders working together for positive change.
- By working hand in hand with state insurance departments, we can create a more transparent, fair and responsible insurance landscape. Let’s take to heart the inspiring message that change is possible when public adjusters, insurance consumers and government officials unite for a common goal: to protect and empower policyholders across the country.
It’s important to remember that state insurance departments are not just regulatory agencies but partners in protecting policyholders. The readers of this blog are usually informed insurance consumers and people involved in insurance claims. You can play an important role in creating a more policyholder-friendly environment by actively participating and working with people who run state insurance departments. Most people want to hear from you if you simply take the time to respectfully reach out.
If you are a public adjuster or restoration contractor, please contact your association leaders about your association’s regulatory outreach plans. Does anyone from your associations attend the National Association of Insurance Commissioners quarterly and ad hoc meetings? Simply forward this post to them and ask while also stating that you want to help.
One reason I publicly support, with time and money, United Policyholders’ efforts is that United Policyholders actively engages with insurance regulators state by state and at national meetings. Most of us are too busy in our daily and professional lives to be able to do this at the level that United Policyholders can. So instead of just reading this post and letting it go, I encourage you to click on the United Policyholders linked site right now. Register to be more informed and provide financial support. You will have taken steps to create a better insurance market.
Today’s thought
Retirement is not in my vocabulary. They won’t get rid of me like that.
-Betty White
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