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Best Practices in Insurance Licensing Forum

Agenda. 10:00

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Best Practices in Insurance Licensing Forum

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    1. Best Practices in Insurance Licensing Forum Background created by m62 Visualcommunications, visit www.m62.net for more informationBackground created by m62 Visualcommunications, visit www.m62.net for more information

    2. Agenda 10:00 – 10:30 Welcome and Opening Comments Sonya Dungey, Director of Licensing Michele Riddering, Licensing Manager 10:30 – 10:50 Consumer Services Division Kristie Taber, Manager – Communications Center and Consumer Assistance Regan Johnson, Manager – Market Conduct 10:50 – 11:00 Legislative Update Jenita Moore, Deputy Commissioner – Policy 11:00 – 12:00 Producer Licensing Guiding Principles Deborah Canja, Deputy General Counsel – Office of General Counsel 12:00 – 1:00 Lunch 1:00 – 1:30 DOB Conversion: Continuing Education Tracy Lord Bishop, Education Administrator 1:30 – 2:30 Business Entity Licensing Jennifer Childs, Licensing Analyst SueEllen Tyszkiewicz, Licensing Analyst 2:30 – 3:00 Technology Update Terri Mann, Technology Specialist 3:00 – 3:15 Break 3:15 – 4:30 Entry Level Licensing Exams Paige Colley, Testing Specialist Tadas Dabsys, Vice President – PSI Services Nikki Shepherd Eatchel, Vice President – Prometric Dr. James Fryer, Senior Sales Executive – Pearson VUE Craig Johnson, Client Services Manager – Prometric 4:30 – 4:45 Problem Applications Tracey Peck, Producer Licensing Specialist 4:45 –5:00 Questions & Answers Adjournment Background created by m62 Visualcommunications, visit www.m62.net for more information Background created by m62 Visualcommunications, visit www.m62.net for more information

    3. Review of NAIC Compliance

    4. Review of NAIC Compliance

    5. Review of NAIC Compliance

    6. Review of NAIC Compliance

    7. Review of NAIC Compliance

    8. Review of NAIC Compliance

    9. Review of NAIC Compliance

    10. Review of NAIC Compliance

    11. Review of NAIC Compliance

    12. Review of NAIC Compliance

    13. Licensing Population

    14. Licensing Population

    15. Insurance Licensing Bulletins

    16. Consumer Services Division Kristie Taber, Manager Communications Center and Consumer Assistance Regan Johnson, Manager Market Conduct

    17. Consumer Assistance Section Assists consumers with insurance and financial services problems and questions OFIR received approximately 5,618 consumer complaints last year: 3,051 Insurance 1,042 Blue Cross & HMO 1,030 Consumer Finance 165 Securities 330 Credit Unions/Banks Total recoveries over $16 million

    18. Our Goals Educate the consumer Make sure the consumer is treated fairly and within standard business practices Ensure compliance with statutes

    19. Complaint Statistics by Reason & Coverage Accident & Health 50% Homeowners 12% Auto 20% Life 9% Annuity 5% Liability 2% Fire & Commercial 2%

    20. Common Insurance Complaint Issues Misrepresentation/Unsuitability in the Sale of Equity Indexed or Variable Annuities and Universal Life Policies Rating Complaints: - Long Term Care Rate Increases - Affordability of auto and home insurance - Availability and affordability of health insurance Medicare Supplement Duplication of Coverage Fiduciary Violations Claim Issues Health Insurance Claim Denials Automobile Personal Injury Protection Homeowner

    21. Business-To-Business Complaints Business-to-Business complaints handled by Investigations Section OFIR will not intervene in contractual disputes : - Do not review questions regarding payment of commissions, etc. If dispute involves alleged violation of Insurance Code, may review with supporting documentation

    22. Complaint Process Complaint arrives – must be submitted in writing Assigned to analyst by topic Forwarded to insurer and/or agent for response - Response due in 21 calendar days - Fine imposed for failure to respond - Company cannot respond on behalf of agent - Must respond in duplicate Analyst reviews response and documentation submitted by licensee and consumer

    23. Complaint Process Complaint analysts are impartial in their review - Documentation submitted is crucial to their determination on file OFIR will determine - Is consumer harmed by activity? - Is activity in violation of Insurance Code? Analyst makes file determination: - Request additional information - Close complaint; closing letter sent to consumer - Refer to Investigations for review and action

    24. Common Violations & Referrals Unlicensed Activity/Fraud Fiduciary issues; premiums not remitted, misappropriation/embezzlement of funds Binding coverage without appointment with insurer Public Adjuster Charging fees in excess of 10% allowed Advancing money to insured Not maintaining required records Soliciting insured at the scene of the fire Requiring their name on all settlement checks to the insured Agent forgery Agent misrepresentation of insurance policy False and/or misleading advertising False statements relative to an application for insurance Rebating

    25. What We Can & Cannot Do Act as court of law Act as an attorney or give legal advice Take action in matters involving internal affairs of a business

    26. Summary Purpose of Consumer Assistance is to: Ensure consumers are treated fairly and in accordance with the law Detect violations of law and take appropriate action

    27. Legislative Update Jenita Moore, Deputy Commissioner Policy Division

    28. Producer Licensing Guiding Principles Deborah Canja, Deputy General Counsel Office of General Counsel

    29. The Internet: Popular Sites for Locating People Directory Assistance masterfiles.com argali.com Free Databases google.com zabasearch.com peoplefinder.com yahoo.com altavista.com myfamily.com birthdatabase.com zoominfo.com Masterfiles.com – can release non-pub numbers, .27 cents/search Argali – both white & yellow combined, has a monthly sub. $30 for more.Masterfiles.com – can release non-pub numbers, .27 cents/search Argali – both white & yellow combined, has a monthly sub. $30 for more.

    30. The Internet (cont.) Blog Searching blogsearch.google.com technorati.com daypop.com journalspace.com blogdigger.com easyrss.com feedster.com blog.com Directory of Public Records searchsystems.net publicrecordcenter.com Goliath database has information on 450,000 public and private companies Manta.com has over 46 million Guidestar.com – nonprofit lookupGoliath database has information on 450,000 public and private companies Manta.com has over 46 million Guidestar.com – nonprofit lookup

    31. The Internet: Michigan Courts/Services Online 55th District, Mason 67th District, Flint 61st District, Grand Rapids 89th District, Cheboygan Michigan v. Florida v. California online culture Years computers search Offender Tracking Information System (OTIS) Michigan State Police ICHAT Service Genesee County—only had domestic when last there Oakland & Genesee – Circuit only—what about district? ICHAT– has some gaps. OTIS—only 2 years now.Genesee County—only had domestic when last there Oakland & Genesee – Circuit only—what about district? ICHAT– has some gaps. OTIS—only 2 years now.

    32. Lunch

    33. DOB Conversion: Continuing Education

    34. Continuing Education Review Date

    35. Continuing Education Review Date

    36. Continuing Education Review Date

    37. Continuing Education Review Date

    38. Continuing Education Review Date

    39. Continuing Education Review Date

    40. Business Entity Licensing

    42. AG Opinion #7242: Section 213(1) of the Business Corporation Act, 1972 PA 284, MCL 450.1213(1), does not require a corporate insurance agency that includes the word "insurance" in its name to also include the word "agency," and a corporate agency is free to use the word "insurance" in its name so long as the name, taken as a whole, does not imply that the agency is an insurance or surety company.

    44. DRLP What is a DRLP?

    45. DRLP What changes were made?

    46. DRLP The 14 Day Notice

    47. DRLP The 14 Day Notice

    48. DRLP The 14 Day Notice

    49. DRLP The 14 Day Notice

    50. Technology Update

    51. Interfaces with NIPR Michigan is 100% electronic in company appointments and terminations through NIPR

    52. Interfaces with NIPR

    53. Interfaces with NIPR

    54. Interfaces with NIPR

    55. Interfaces with NIPR

    56. Interfaces with NIPR

    57. Changing Your Mailing Address After July 1, 2010, licensees may be fined up to….

    58. Advances in Technology

    59. Advances in Technology

    63. Navigating the OFIR Website

    64. Navigating the OFIR Website

    65. Navigating the OFIR Website

    66. Afternoon Break

    67. Entry Level Licensing Exams Paige Colley, Testing Specialist Tadas Dabsys, Vice President – PSI Services Dr. James Fryer, Senior Sales Executive – Pearson VUE Nikki Shepherd Eatchel, Vice President – Prometric Craig Johnson, Client Services Manager – Prometric

    68. Test Development

    69. Regulation & Testing

    70. Licensing Exam Development

    71. Critical Issues: Fairness

    72. Critical Issues: Fairness

    73. Job Analysis Survey

    74. Sampling Methodology

    75. Analysis of the Survey Results

    76. Content Specifications

    77. Writing Exam Questions

    78. Basic Item Writing Principals

    79. Item Writing Principals

    80. How?

    81. Linking to Job Analysis

    82. Linking to Knowledge Statement

    83. Linking to Knowledge Statement

    84. Balancing Cognitive Levels

    85. Performance Analysis

    86. Item Statistics

    87. Forensic Data Analysis

    88. Analysis of Subgroup Performance

    89. Reporting Results and Impact of Scores

    90. Candidate Performance: MI Life Producer Exam

    91. Passing Score v. Pass Rate

    92. Variables Affecting Pass Rates

    93. Vendor Presentations: Conclusion

    94. Call Center Data

    95. Recruitment of SME’s for ERW August 19, 2010

    96. ERW OVERVIEW Prometric and the Michigan Office of Financial and Insurance Regulation conducted the annual exam review workshop to: Review content outlines for applicability with current Michigan statutes, rules, regulations and Insurance Department policy; Review test items – questions and responses – for clarity and relevance; Draw on the expertise of local insurance professionals to further validate the test content used in the state. Prometric performs an exam review for all exams in Michigan every two years to cover National and State content

    97. OVERVIEW OF EXAM REVIEW WORKSHOP The Michigan Office of Financial and Insurance Regulation and Prometric identified and enlisted approximately 38 Michigan industry professionals to participate in the 2009 workshop. Participants represented various industry affiliations, levels of experience, and geography This breadth of representation was sought to ensure development of exam content that tests entry-level knowledge for licensing in Michigan .

    98. ERW TIMELINE OF ACTIVITIES The ERW is one of the first of several steps in the process to update test content and to republish Michigan Insurance exams in Prometric test center network. The target date for next Michigan Insurance ERW is August 19, 2010 *New exam outlines available post ERW

    99. Exam Review Workshop- Content Review Both National and Michigan - Specific Content Reviewed Reviewed annually by Committees Committee is chosen and invited by OFIR Industry Leaders and OFIR employees are represented Every line is thoroughly reviewed by participants ERW participants are not responsible for item writing but review and re-write to ensure it meets OFIR standards; however, OFIR conducted item writing session in the past

    100. EXAM CONTENT OUTLINE Licensing Examination Bulletin http://www.prometric.com/Michigan/Insurance.htm Click the download button under the heading “Find Answers to Your Questions” Outlines http://www.prometric.com/Michigan/content-outlines.htm

    101. Problem Applications

    102. Inaccurate Application Responses Errors in CRIMINAL and ADMINISTRATIVE background questions are the most common among application responses.

    103. Inaccurate Application Responses Errors in CRIMINAL and ADMINISTRATIVE background questions are the most common among application responses.

    104. Inaccurate Application Responses Errors in CRIMINAL and ADMINISTRATIVE background questions are the most common among application responses.

    105. Questions & Answers OFIR Licensing Staff

    106. Adjournment

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