The company’s
“Day-to-day regulatory compliance issues can slip insurers up if they’re not careful,” said Kathy Donovan, senior compliance counsel, insurance, at Wolters Kluwer. “Paying attention to market conduct activity, as well as states’ adoption of
This is the sixth year Wolters Kluwer Financial Services’ insurance compliance experts have compiled market conduct exam content for the lists. The data can help serve as a compliance checklist for insurers.
Wolters Kluwer Financial Services’ industry research shows that the top 10 most common market conduct compliance criticisms for
1. Failure to pay the appropriate claim amount
2. Failure to acknowledge, to pay, or deny claims within specified time frames
3. Failure to non-renew policies in accordance with requirements
4. Using unapproved forms, unfiled rates and/or misapplication of rating factors
5. Failure to provide required disclosures in the claims process
6. Failure to adhere to producer appointment, termination and/or licensing requirements and adjuster licensing requirements
7. Failure to cancel policies in accordance with requirements
8. Failure to respond to the Department of Insurance and/or produce records requested during the exam process
9. Failure to adhere to underwriting rules and/or provide required disclosures
10. Improper documentation of claim files
The top 10 most common criticisms for
1. Failure to acknowledge, to pay, or deny claims within specified time frames
2. Using unapproved or unfiled forms
3. Failure to adhere to advertising requirements
4. Failure to adhere to replacement requirements
5. Failure to adhere to producer appointment, termination, and/or licensing requirements
6. Failure to adhere to grievance and appeals requirements
7. Failure to provide required disclosures
8. Failure to include required provisions in insured’s contract
9. Failure to follow enrollment procedures
10. Claim payments inconsistent with benefit plans
“It’s important for insurers to have the resources and systems in place to keep up with the pace of regulatory change,” said David Evans, VP and GM, insurance, at Wolters Kluwer Financial Services. “Our comprehensive market conduct research, regulatory intelligence and workflow management solutions can help insurers assess and minimize their compliance risk exposure.”