Delaware Regulators Recovered $1.9M for Policyholders in 2015

The Delaware Department of Insurance said the department last year recovered more than $1.9 million for policyholders, and helped business owners save nearly $9.3 million in workers’ compensation insurance costs.

The department returned over $1.9 million to consumers in two ways. The DOI advocated for policyholders during disputes with insurance companies and recovered nearly $1.1 million for individuals last year (handling 4,450 formal complaints and inquiries). In addition, the department facilitated arbitration hearings on behalf of consumers which led to awards totaling $816,384.

The DOI said it also collected approximately $105.5 million through fees, fines and insurance premium taxes during fiscal year 2015, and distributed most of those dollars to Delaware fire companies and ambulance services, the police pension fund, and the state’s general fund.

The DOI said these figures were among the highlights of the presentation made to the Delaware General Assembly’s Joint Finance Committee on Feb. 16 by Insurance Commissioner Karen Weldin Stewart and her staff.

“Consumers are always our primary focus at the department,” said Stewart. “My staff wants Delawareans to know their rights when dealing with insurance companies. I am really proud that we were able to intervene on behalf of consumers and recover this much money for policyholders.”

The DOI said that instead of asking the legislature for financial support, the department covers its own operating costs with a portion of revenue obtained through insurance premium taxes and other fees and fines. Pursuant to state law, the DOI then makes contributions through the state treasurer’s office to various state and local accounts.

During fiscal year 2015, the department provided $38.4 million of the tax revenue to Delaware’s volunteer fire companies, the City of Wilmington fireman’s pension fund, ambulance service providers throughout the state, and the police pension fund.

In addition, $3.8 million was transferred to the workers’ compensation assistance fund and $1 million went to the reserve fund for victims of insurance fraud. The remaining $62.3 million was deposited into the general fund for use as the state deems appropriate.

The DOI said it also helped Delaware businesses save money through its Workplace Safety Program, which allows employers to earn discounts of up to 19 percent on their workers’ compensation insurance premiums if they meet certain safety requirements by undergoing voluntary inspections.

The 1,481 businesses enrolled in the program in 2015 saved in excess of $9 million, according to Delaware Compensation Ratings Bureau estimates. The DOI continues to work with employers and insurers to promote the benefits of the program.

The department is also home to the Delaware Medicare Assistance Bureau (DMAB), formerly known as ELDERinfo. DMAB staff assists Medicare recipients with questions related to Medicare, Medigap (Medicare supplement) insurance, Medicare Part D (prescription medication plans), Medicare Advantage plans, and other financial assistance programs. The DOI said DMAB assisted more than 7,000 beneficiaries through telephone calls, face-to-face meetings, and e-mail and helped saved beneficiaries nearly $840,000 in 2015.