Washington Insurance Commissioner Mike Kreidler issued fines in April and May totaling $398,500 against insurance companies for violations of state insurance laws and regulations.
Following is a list of reported violations the commissioner’s office issued:
Insurance companies
LifeWise Health Plan of Washington, Mountlake Terrace, Wash.; fined $250,000
During the COVID-19 pandemic, LifeWise incorrectly processed 4,133 virtual mental health claims for 871 consumers, which resulted in $75,366 in overpayments to providers.
Premera Blue Cross, Mountlake Terrace, Wash.; fined $50,000
Premera’s third-party vendor incorrectly configured benefits in its claims system, which resulted in 1,420 mental health office visits being charged a deductible and a total of $89,737 in claim underpayments.
Regence BlueShield, Seattle, Wash.; fined $10,000
Regence was the victim of a data security breach that exposed 570 Washington consumers’ private information in 2021. Regence failed to timely notify the OIC of the breach and oversee its subcontractor.
American Digital Title Insurance Company, Denver, Co.; fined $30,000
American Digital Title Insurance accepted new business and paid commissions to its sole producer without appointing them as title agent. The company also failed to respond to the OIC’s inquiry in a timely manner.
New Hampshire Insurance Company, Chicago, Ill.; fined $8,000 with $4,000 suspended
The company was fined $8,000 for sending out storage unit burglary claim denial letters with language that doesn’t appear on the Washington Certificate of Storage Insurance. Half of the fine was suspended on the condition the company doesn’t violate any statutes or regulations for the next two years.
Unauthorized insurers or companies
Airbnb, San Francisco, Calif.; fined $20,000
Airbnb acted as an unauthorized insurer through its Host Damage Protection program. The company was ordered to obtain a surplus lines policy through a broker authorized in Washington state.
Mack Camera & Video Service, Springfield, N.J.; fined $20,000
Mack Camera & Video acted as an unauthorized insurer. The company was also ordered to stop engaging in unauthorized insurance business in the state.
Producers, agents & brokers
Golden State Claims Adjusters, Carlsbad, Calif.; fined $5,000
The company used an adjuster who was not licensed in Washington state to process a claim.
Railroad Insurance Services; fined $500
Railroad Insurance Services acted as a surplus line broker and insurance producer without being licensed in Washington.
Sandra Sherman, Renton, Wash.; fined $7,000
Sherman misrepresented life insurance policies, leading consumers to believe the policies included long-term care coverage that would exempt them from paying into the WA Cares Fund.
William H. Steenis, Snohomish, Wash.; fined $500
Perla’s Insurance Services, Mount Vernon, Wash. Fined $500
Tanika Stewart, Fishers, Ind.; fined $250
Lori Ann Veccia, Sharon, Penn.; fined $250
Shane Van Dalen, Lynden, Wash.; fined $500
Since 2001, Kreidler has assessed more than $39 million in fines, which are directed to the state’s general fund to pay for state services.
Topics Washington
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