SCC News

RICHMOND – Property damage from Tropical Storm Isaias likely will raise many questions from Virginia policyholders, including how to expedite the processing of claims with their insurance company. If your home, property or business was damaged during that storm, the State Corporation Commission’s (SCC) Bureau of Insurance (Bureau) encourages you to contact your insurance company or agent as soon as possible to file a claim or to find out whether your damaged property is covered by your insurance policy. The Bureau reminds Virginians that flood damage typically is not covered by a standard homeowners or renter's insurance policy.

Many insurance companies have special toll-free numbers for catastrophes that operate 24 hours a day, seven days a week and provide those numbers on their websites. The Bureau also can provide assistance to consumers who have difficulty getting through to their insurance company or agent.

Virginia Insurance Commissioner Scott A. White suggests taking pictures of damaged property, saving receipts for repair costs, and protecting your property from further damage. Additional information may be found on the Bureau’s disaster readiness page at https://bit.ly/3gyPYlx. The Bureau also offers disaster guides for Virginia homeowners and businesses that answer the most commonly-asked questions about settling disaster-related insurance problems. They are available on the Bureau’s website at https://bit.ly/2XuGCzS  (homeowners) and https://bit.ly/2PqBxnJ (commercial property).

The Bureau’s specially trained staff stands ready to handle inquiries through its toll-free telephone number 1-877-310-6560 or by email at BureauofInsurance@scc.virginia.gov. Consumers may reach the Consumer Services Section of the Bureau’s Property and Casualty Division directly by calling (804) 371-9185. Consumer complaints may be filed electronically through the Bureau’s website. Contact: Katha Treanor, 804-371-9141

RICHMOND – The State Corporation Commission (SCC) is seeking written comments on regulations proposed by its Bureau of Insurance (Bureau) that carry out certain provisions of a new Virginia law designed to protect consumers from receiving surprise medical bills.

Surprise billing or balance billing occurs when patients enrolled in managed care health insurance plans receive bills for more than their plan’s cost-sharing amounts directly from medical service providers who do not participate in a managed care plan’s network of providers - often referred to as “out-of-network” providers.

Under legislation passed by the 2020 General Assembly and signed in April by Gov. Ralph Northam effective January 1, 2021, individuals enrolled in managed care health insurance plans cannot be balance billed in Virginia if they receive emergency services from an out-of-network provider or non-emergency surgical or ancillary (such as diagnostic and support) services from an out-of-network provider at an in-network facility.

The new law incorporates protections for consumers put forth by the Bureau in 2019 as well as adds further protections. Based on the new legislation, the newly proposed regulations replace those advanced last year and establishes procedures for an insurance company and an out-of-network health care provider to arbitrate disputes when they cannot agree on payment for a service. It also establishes qualifications for arbitrators chosen to determine payment disputes.

Additionally, the law sets forth consumer notification requirements for health care facilities and providers regarding balance billing and requires managed care health insurance plans regulated by the Bureau of Insurance to provide notification to enrollees regarding whether they are subject to balance billing and under what circumstances.

Comments or requests for hearing regarding the proposed regulations may be submitted by September 1, 2020, with the Clerk of the Commission, State Corporation Commission, c/o Document Control Center, P.O. Box 2118, Richmond, Virginia 23218 and shall refer to Case No. INS-2020-00136. Comments may also be submitted through the SCC’s website at https://scc.virginia.gov/casecomments/Submit-Public-Comments. Simply scroll down to case number INS-2020-00136 and click SUBMIT COMMENTS.

You can also learn more about balance billing from the National Association of Insurance Commissioners’ website.

RICHMOND – Since 2017, a free life insurance service has helped 2,127 Virginians recover more than $29.9 million pledged to them through life insurance policies and annuity contracts. The State Corporation Commission’s (SCC) Bureau of Insurance encourages any Virginian in search of lost or misplaced life insurance policies or annuity contracts to take advantage of the free Life Insurance Policy Locator, which is offered by the National Association of Insurance Commissioners (NAIC).
 
“Using secure technology, the service enables consumers to obtain money that is rightfully theirs via life insurance and annuity contracts,” said Virginia Insurance Commissioner Scott A. White, who noted the service has helped recover more than $878.8 million nationwide.

If you believe you are a beneficiary, or you are the executor or legal representative of a deceased person, you may use the free service by submitting a search request form and following these steps:
 

• Gather as much information about the deceased person as possible, including his or her full name (along with maiden name, if applicable), Social Security number, date of birth, state where the policy was purchased, insurance company name, and the person or organization who sold the policy.
• Obtain a copy of the individual’s death certificate.
• Visit the SCC Bureau of Insurance website (https://www.scc.virginia.gov/pages/Tips,-Guides-Publications) and click on “Life Insurance” or the NAIC website (https://eapps.naic.org/life-policy-locator/#/welcome) and complete as many fields as possible.

Requests made through the service are encrypted and secured to maintain confidentiality.  Once a request is submitted, the NAIC will then ask participating companies to search their records using the information provided. If there is a match, a company will typically respond to the person who submitted the request within 90 business days, assuming the person submitting the request is the designated beneficiary or is authorized to receive information.
 
When a life insurance company knows that a policyholder has died but cannot locate the beneficiaries of the policy, the company – under Virginia law – must turn over the policy’s benefits to the state’s unclaimed property office if those benefits are not claimed after a certain number of years. If you know the state in which a life insurance policy was written, check with that state’s insurance department or the office that handles unclaimed property.
 
To avoid lost policies, the Bureau of Insurance encourages Virginians to:
 

• Keep beneficiary information up-to-date.
• Alert beneficiaries of the policy and provide them with the names of the servicing agent and the insurance company that issued the policy.
• Place a current copy of the life insurance policy in a safe and accessible place with wills and estate documents, and ask the insurance company for an annual policy statement if one is not provided.

For questions or additional information about the policy locator and other life and health insurance matters, contact the Consumer Services Section of the Virginia Bureau of Insurance Life and Health Division toll-free at 1-877-310-6560 or visit www.scc.virginia.gov/pages/Insurance.
 

RICHMOND – The COVID-19 pandemic has caused significant market volatility during the past several months, leaving many individuals looking for safe places to put their hard-earned money and still earn a return. The State Corporation Commission’s (SCC) Division of Securities and Retail Franchising (Division) urges Virginians to use caution when considering investments in exempt securities offerings, also known as private placements.

A private placement is a security offering that is not required by law to be fully registered with federal or state securities regulators. Popular especially with start-up companies, private placements allow companies to sell stocks, bonds or other securities to investors without completing the rigorous disclosures necessary in a registered – or public – offering. Selling securities through private placements is generally easier, quicker and less expensive for the issuer than conducting a registered securities offering. Private placements often are riskier than registered securities offerings and may provide only limited opportunities for investors to resell them, so investors could have to hold onto them for longer periods of time.

“People may try to capitalize on headlines to prey on unsuspecting consumers,” said Division Director Ron Thomas. “Don’t assume that just because someone claims to offer a security with a valid exemption from registration that this is actually true. Keep in mind that even when a private security offering is legitimate, it may not be right for you. As with any investment, do your homework and thoroughly understand the risks and benefits,” he said.

Businesses raising capital through private placement offerings may have limited operating histories and modest revenues compared to public companies. These offerings are not reviewed by regulators and the people selling them are not required to provide as much information to investors as public companies are required to provide under securities laws. As such, investing in private placement offerings may be more appropriate for the sophisticated investor and less suitable for less experienced investors. Regardless of your level of investment experience, the SCC urges investors contemplating private placement offerings to use caution.

The most recent enforcement statistics collected by the North American Securities Administrators Association, of which the SCC’s Division of Securities and Retail Franchising is a member, identified private placement offerings as one of the most frequent sources of enforcement actions by state securities regulators.

Thomas urges Virginians to protect themselves financially when considering any investment opportunity by doing the following:

• Carefully review and understand all documents associated with the investment.
• Ask for information about the company, its business model and its executives.
• Be wary of “unique” investment offers or high-pressure sales tactics.
• Verify whether the person offering the investment is properly licensed or registered, as well as whether they have any disciplinary history.

Virginians can do this by contacting the Division of Securities and Retail Franchising in Richmond at 804-371-9051 or toll-free at 1-800-552-7945. For more information, visit the Division’s website at www.scc.virginia.gov/pages/Securities-Retail- Franchising or visit the North American Securities Administrators website at www.nasaa.org/22284/informed-investor-alert-private-placement-offerings/.

RICHMOND – In conjunction with World Elder Abuse Awareness Day on June 15, the State Corporation Commission’s Division of Securities and Retail Franchising (Division) reminds Virginians that extended isolation and loneliness during the COVID-19 pandemic may create a perfect storm for financial exploitation of senior citizens.

Each year, senior citizens lose billions of dollars to financial fraud, with the loss to individual victims averaging tens of thousands of dollars. “Social isolation has long been a leading factor contributing to the financial exploitation of older investors,” said Division Director Ron Thomas. “Social distancing and the unprecedented quarantines designed to protect against the spread of the novel coronavirus have greatly increased social isolation for many seniors, making them more vulnerable to financial exploitation. Perpetrators may be strangers, family members, trusted friends and financial professionals or others.”

Financial abuse can happen any time, but perpetrators often strike when senior citizens are most vulnerable, such as during a health crisis or after the death of a loved one. Scammers often gather personal details from obituaries and social media posts and use this information to target their victims. Some perpetrators even will exploit established relationships within seniors’ social and support groups to become more involved in their lives.

 

Thomas encourages Virginians to be aware of the following warning signs indicative of senior financial abuse:

• Surrendering control of finances to a new or overly protective friend or caregiver
• Fear of or sudden change in feelings toward friends or family members
• A lack of knowledge about their financial status or reluctance to discuss financial matters
• Sudden or unexplained changes in spending habits, a will, trust or beneficiary designations
• Unexplained financial activities, such as checks made out to cash, unusual loans or disappearance of assets, valuables or securities
• Suspicious signatures on checks or other documents

In-person visits may not yet be possible due to the pandemic. However, to reduce the likelihood of isolation and financial exploitation, Thomas urges Virginians to stay in touch with older family members, friends and neighbors by phone, text, email, video calls or other means. “Remind seniors that scammers follow the headlines and may try to exploit the pandemic. Make them aware of the red flags of fraud, which are often the same regardless of the type of scam,” he said.

Thomas asks Virginians who suspect possible senior financial exploitation to contact the Division of Securities and Retail Franchising at 804-371-9051 in Richmond or toll-free at 1-800-552-7945. For more information, visit the Division’s website at www.scc.virginia.gov/pages/Securities-Retail-Franchising or the North American Securities Administrators Association’s website at www.nasaa.org/1723/senior-investor-resource-center/.

RICHMOND – Beginning June 1, 2020, individuals interested in taking insurance agent and public adjuster licensing examinations in Virginia will be able to do so remotely. The State Corporation Commission’s Bureau of Insurance (Bureau) offers this new online option to address, in part, the challenges posed by the COVID-19 pandemic. Exams also will continue to be administered at traditional brick and mortar sites throughout Virginia.

“In addition to promoting the safety of aspiring insurance professionals who take these licensing exams, the new online option reflects the Bureau’s commitment to improving efficiency, innovation and customer service by enhancing exam development, access and delivery capabilities,” said Virginia Insurance Commissioner Scott A. White.

Effective June 1, 2020, Prometric will administer insurance and public adjuster licensing examinations in Virginia. In addition to remote testing, Prometric will operate testing centers in Bristol, Chesapeake, Falls Church, Lynchburg, Richmond and Roanoke. Prometric also will deliver exams at additional test centers elsewhere throughout the Commonwealth as those sites become available.

The online testing represents just one of many enhancements the Bureau is making to its insurance credentialing programs. “The remote proctoring capabilities offered by Prometric’s ProProctor™ remote assessment platform will expand access to insurance licensing exams for Virginians by allowing candidates to test anywhere, and with greatly expanded hours,” White said.

Insurance license candidates can schedule their exam by visiting  www.prometric.com/virginia/insurance or by calling 1-866-891-6396. Candidates who prefer to take the exams at a test center are encouraged to confirm their appointment with that center in advance.

Individuals who need to take an insurance agent or public adjuster licensing exam before June 1, 2020, can schedule an appointment with the Bureau’s current test partner, Pearson VUE, at https://home.pearsonvue.com/va/insurance.

For more information, contact the Agent Licensing Section of the Bureau’s Agent Regulation Division at 804-371-9631 or AgentLicensing@scc.virginia.gov. Or visit the Bureau’s website at https://scc.virginia.gov/pages/Bureau-of-Insurance and Prometric’s website at www.prometric.com/virginia/insurance.

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Contact: Katha Treanor (804) 371-9141

RICHMOND – As the novel coronavirus (COVID-19) continues to take a financial toll on individuals and the economy, the State Corporation Commission’s Division of Securities and Retail Franchising (Division) urges Virginians to do their homework before making any investment.

Securities regulators are stepping up efforts to protect investors during this pandemic. The Division has joined an international enforcement task force of state and other securities regulators recently organized by the North American Securities Administrators Association (NASAA). The focus is to protect investors from scammers seeking to capitalize on COVID-19 fears.

"Don’t let panic, fear and uncertainty guide your investment decisions. Rely on research rather than personal feelings,” said Ron Thomas, Division director. “We are pleased to join forces with our colleagues in NASAA’s COVID-19 Enforcement Task Force and are committed to protecting Virginians from opportunists seeking to profit from this crisis.”

The Division is among the many members of NASAA, which is comprised of state and provincial securities regulators in the United States, Canada and Mexico. The COVID-19 task force was formed to identify and stop potential threats to investors stemming from the coronavirus pandemic. Among other things, task force members will identify websites and social media posts that may offer or promote unregistered or fraudulent investments related to COVID-19.

Investment scams involving COVID-19 likely will include telltale signs similar to other fraudulent investments.  Thomas urges Virginians to ask the following questions before making any investment:

• Does the investment offer or promise a guaranteed high return with little or no risk?  All investments carry risk that you may lose some or all of your money.  No one can guarantee an investment return.
• Is there a sense of urgency or limited availability of detailed information about the investment?   If someone offers you a “can’t miss” investment opportunity and pressures you to invest right now, don’t be afraid to walk away.
• Is the person or company offering the investment - and the investment itself - properly licensed or registered? In Virginia, you can find out by contacting the Division of Securities and Retail Franchising in Richmond at 804-371-9051 or toll-free (in Virginia) at 1-800-552-7945 or online at scc.virginia.gov.

“Before making any investment, research the investment and the person or company offering it and know where your money is going, how it will be used and how you can get it back. Always verify that the investment and the person offering it are registered by the appropriate securities regulator,” Thomas said.

Thomas encourages investors to report any suspected fraudulent COVID-19 or other investment opportunities. “Reporting suspicious COVID-19 related investment offers is important to help us investigate fraudulent activities and protect our citizens from falling victim to financial fraud in these unprecedented times,” he said.  Virginians who see – or suspect they have fallen victim to – COVID-19-related or other investment scams, can contact the Division of Securities and Retail Franchising. For more information, investors also may visit the NASAA website.

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Contact: Katha Treanor (804) 371-9141

RICHMOND — When it comes to floods, coastal areas are not the only places at risk. During Virginia Flood Awareness Week – March 8-14, 2020 – the State Corporation Commission (SCC) joins other local and state agencies in reminding Virginians to Know Your Risk. Protect Your Property. Get Flood Insurance.

Hurricanes and heavy rains are not the only culprits when it comes to flooding. Areas that experience other natural disasters, such as severe winter storms and wildfires, are equally vulnerable. Ice dams and snowmelt can cause flash floods. Lack of vegetation caused by wildfires can cause mudflows and floods.

“Floods can happen anywhere and anytime,” said Virginia Insurance Commissioner Scott A. White. “All it takes is a few inches of water to cause major damage to your home and its contents.”

Homeowners insurance policies issued in Virginia typically do not provide coverage for damage to your home and property due to floods. However, the federal government does sell insurance for direct flood and flood-related damage through the National Flood Insurance Program (NFIP). This federally-backed flood insurance is available to homeowners, renters and business owners, and offers separate coverage for structures and contents. Potential buyers should think about their flood insurance needs in advance as there is generally a 30-day waiting period before a new flood insurance policy takes effect.

No matter where you live, White encourages Virginians to assess their flood risk and protect themselves financially before the waters start to rise. “Without understanding your risk and knowing your insurance options, you might find yourself inadequately covered when you need coverage the most. Flood insurance is one of the best ways you can protect yourself financially against a flood, but the time to plan is now,” he said.

For more information about flood insurance, contact your insurance agent or the NFIP at 1-800-427-4661, or visit www.floodsmart.gov. Since some private insurers also offer their own flood policies, you can check with your insurance agent about the availability of a private flood insurance policy. In either case, ask whether your flood policy provides coverage for your personal property.

Unlike homeowners insurance, auto insurance generally covers damage to a vehicle caused by flooding. However, the policyholder must have other-than-collision (also known as comprehensive) coverage on their vehicle. This coverage pays for damage to a vehicle from such things as fire, water, hail, vandalism, glass breakage, wind and falling objects.

The Bureau encourages Virginians to take steps now to protect their homes and property against floods and other disasters. Evaluate your risk; review your insurance coverage; create a home inventory of your belongings and store it with your insurance policies and other important documents in a safe place. To prepare for floods, elevate electrical and HVAC systems; seal foundation cracks; install drain plugs, sump pumps or backflow water valves; dry-proof your property with coatings and sealants, and grade your lawn away from your home.

Among the many publications offered by the SCC’s Bureau of Insurance are consumer guides regarding homeowners and auto insurance and disaster-related property insurance claims. For copies of the guides or answers to your insurance questions, contact the Bureau of Insurance Property and Casualty Consumer Services Section by calling (804) 371-9185 in Richmond or toll-free at 1-877-310-6560. Copies of the consumer insurance guides are also available on the Bureau’s website.

For more information about floods and flood-related disasters, visit the Virginia Department of Conservation and Recreation website at https://www.dcr.virginia.gov/dam-safety-and-floodplains/floodawareness or the Virginia Department of Emergency Management website at https://www.vaemergency.gov/.

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Contact: Katha Treanor (804) 371-9141