OIC 2023 Overview Presentation — Senate Business, Financial Services, Gaming and Trade Committee
Summary
OIC 2023 Overview presentation to the Senate Business, Financial Services, Gaming and Trade Committee, dated January 10, 2023 on its first slide and January 9, 2023 on later slides. The slides state a mission to protect consumers, the public interest and the state's economy through fair and efficient regulation of the insurance industry, and list the OIC's primary responsibilities, including premium tax collection, solvency monitoring and producer licensing. They report 2021-2023 revenue of $1.4 Billion to the General Fund and state that the OIC regulates over 2,500 insurance and risk-bearing entities. Consumer assistance slides state that compliance analysts helped consumers recover $16 million in fiscal year 2021-2022.
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“OIC 2023 Overview Presentation — Senate Business, Financial Services, Gaming and Trade Committee.”
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OIC 2023 Overview
Presentation to Senate Business, Financial Services, Gaming and Trade Committee
January 10, 2023
Mission statement
We protect consumers, the public interest and
our state’s economy through fair and efficient
regulation of the insurance industry.
OIC 2023 Overview January 9, 2023 2
OIC Primary Responsibilities
OIC 2023 Overview January 9, 2023 3
OIC Primary Responsibilities
• Collect premium tax for general fund
• Monitor insurance company solvency
• Producer licensing and oversight
• Rates and forms approval
• Consumer education and advocacy
• Enforcement of federal and state laws
• Implementation of new laws/Rulemaking
OIC 2023 Overview January 9, 2023 4
2021-2023 Revenue
• $1.4 Billion to the General Fund
• $1.37B from premium taxes
• $35M from licensing and appointment fees
• $8M from penalties assessed
• $55.9 Million to the Health Benefit Exchange
Account
• $67.3 Million to the OIC regulatory account
• $3.6 Million to the OIC Fraud account
OIC 2023 Overview January 9, 2023 5
2021-2023 Operating Budget
• OIC has no GF-S appropriation
• OIC’s biennial appropriation is $79.029 million with
272 FTEs. It is funded via:
• Regulatory surcharge account
• Fraud surcharge account
• Federal grants ($4.67M)
• Any excess fund balance in the OIC operating
accounts is required to be returned to the
organizations paying into the accounts.
OIC 2023 Overview January 9, 2023 6
Monitor company solvency
OIC regulates over 2,500 insurance and risk-bearing
entities:
• 224 in-state
• 2,318 out-of-state
• 25 out-of-country
The OIC regularly conducts financial examinations of
insurance companies, and other companies,
incorporated in Washington state.
OIC 2023 Overview January 9, 2023 7
Producer licensing and oversight
The OIC processed over 70,000 applications in 2021 and
provides oversight on over 253,000 licensees.
• Producers,
• adjusters,
• surplus lines,
• life settlement,
• title,
• premium finance,
• car rental,
• self-service storage, and
• portable electronics
OIC 2023 Overview January 9, 2023 8
Rates, Forms, & Provider Network review
In 2022, we reviewed and approved:
• 11,071 health, life, and disability forms, which
includes provider contracts
• 6,318 provider contracts
• 1,360 health care benefit management contracts
• 3,447 health, life, and disability rate filings
• 1,799 property and casualty forms
• 1,587 property and casualty rate filings
OIC 2023 Overview January 9, 2023 9
Consumer Assistance
o During fiscal year 2021-2022, our compliance
analysts:
o helped consumers recover $16 million dollars as a
result of our complaint process.
o answered over 11,500 informational cases
o handled over 8,400 complaints.
o answered over 96,500 calls.
o answered over 14,700 live chats
OIC 2023 Overview January 9, 2023 10
Consumer Assistance and Results
OIC 2023 Overview January 9, 2023 11
Top Reasons Consumers Contact Us
o Claim delays, denials, disputes
o Coverage issues and appeals
o Cancellations and renewals
o Rate increases
OIC 2023 Overview January 9, 2023 12
Criminal Fraud referred to OIC
3246
2712 2657
2020 2021 2022
ISO/NICB NAIC Contact CIU
OIC 2023 Overview January 9, 2023 13
Regulatory investigations completed in 2022
4% Dishonest or
3%
Untrustworthy
10% 20% Unauthorized activity
Fraud
19% 117 18% Various other
violations
Unlicensed activity
16% 10% Incompetent or
Negligent
OIC 2023 Overview January 9, 2023 14
Enforcement orders 2022
712 total enforcement orders
• Revocations
• Consent order with fine
• Cease and Desist
382 enforcement orders with fines
• Companies
• Licensees
• Unlicensed
All fines recovered are distributed into the state general fund
OIC 2023 Overview January 9, 2023 15
Questions?
Bryon Welch
Deputy Commissioner for Policy and Legislative Affairs
Bryon.Welch@oic.wa.gov (360) 725-7037
David Forte
Senior Policy Advisor, Property & Casualty
David.Forte@oic.wa.gov (360) 725-7268
Connect with us!
• Facebook: https://www.facebook.com/WSOIC
• Twitter: https://twitter.com/WA_OIC
• www.insurance.wa.gov
OIC 2023 Overview January 9, 2023 16
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