California Authority Prohibits Operation of Insurance Firm
California Department of Insurance Cracks Down on Illegal Insurance Activities
In a series of recent actions, the California Department of Insurance (CDI) has taken steps to protect consumers by enforcing insurance regulations and combating fraudulent activities.
Cease and Desist Orders Issued Against Unlicensed Entities
The CDI has served 10 Cease and Desist Orders on multiple entities and individuals who aided and abetted Innovative Partners, LP in selling insurance without the proper licensing or certification. This practice, Commissioner Ricardo Lara stated, is against the law and puts consumers' health and financial well-being at risk.
Investigation into State Farm's Handling of Wildfire Claims
The CDI is also investigating State Farm's handling of thousands of insurance claims from wildfire survivors affected by the Palisades and Eaton wildfires. The investigation, which is part of ongoing efforts to control the cost of wildfire insurance in California, is a Market Conduct Examination.
Unlicensed Health Coverage Sales
Innovative Partners, LP has been accused of defrauding victims by selling them limited or non-existent health coverage and convincing them they were purchasing comprehensive insurance plans. Some plan cards listed PHCS and Group Resources as claim handlers, while others also listed portal information for First Health Network and/or Marpai Administrators LLC. However, Innovative Partners is not partnered with Covered California.
One consumer, who was told he had an Aetna Gold PPO plan through Innovative Partners, was left with over $1,700 in unpaid medical bills after the insurance did not cover his mental health appointments.
Enforcement and Penalties
The selling of health coverage without proper certification typically triggers enforcement actions by the CDI and possibly other regulatory bodies. Consequences can include cease-and-desist orders, fines, revocation of licenses, and potential civil or criminal penalties for violations of insurance laws. Additionally, illegally selling health coverage can expose the company to lawsuits from consumers and regulatory enforcement that may seek consumer restitution or other remedies.
New Regulation for Wildfire Safety and Mitigation
Commissioner Lara is enforcing a new insurance pricing regulation in California that recognizes and rewards wildfire safety and mitigation efforts by homeowners and businesses, making it the first regulation of its kind in the nation. The aim is to control the cost of wildfire insurance.
Rate Rise for State Farm in California
A rate rise for State Farm in California has been approved, subject to a meeting where reasons like increasing market valuations on homes will be discussed.
Cease and Desist Order Against Innovative Partners, LP
Innovative Partners, LP received a Cease and Desist Order from Commissioner Lara for illegally acting as an insurance company in California and providing health coverage without proper certification.
Contacting the California Department of Insurance
For precise and current information, contacting the California Department of Insurance or a qualified attorney specializing in insurance law would be necessary.
- The California Department of Insurance (CDI) is investigating State Farm's handling of property insurance claims arising from wildfire events, as part of ongoing efforts to control the cost of wildfire insurance in the state.
- In a recent development, Commissioner Ricardo Lara has issued a Cease and Desist Order against Innovative Partners, LP for illegally acting as an insurance company in California and providing health coverage without proper certification, deeming it a breach of insurance regulations.
- The CDI is actively enforcing new regulations in California, including a regulation that recognizes and rewards wildfire safety and mitigation efforts by homeowners and businesses, with the goal of controlling the cost of wildfire insurance and making it the first regulation of its kind nationwide.
