California insurance regulators have taken action against GeoVera Insurance Co., providers of residential earthquake insurance, this week. Regulators took notice of the company after having received a multitude of complaints from policyholders. According to these complaints, the insurer’s underwriting procedures are not as adequate as they are supposed to be. Regulators have investigated the matter and found that the insurer’s practices were indeed falling short of the state’s standards. GeoVera will be facing major changes as regulators look to make the company more compliant with state laws. The insurer will…
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New York insurance regulators and federal authorities claim victory over insurance fraud syndicate
Auto insurance fraud has been a major problem in the state of New York. For years, regulators and lawmakers have been working to combat fraud throughout the state, but it has been a difficult challenge to overcome. This week, regulators have claimed a major victory as state and federal authorities dismantled a massive auto insurance fraud ring. Regulators are calling it the largest insurance fraud syndicate that focused almost exclusively on exploiting New York’s no-fault insurance laws. The crime ring is comprised of 36 people in total. Ten doctors and…
Read MoreAllstate CEO names new head of the insurer’s home and auto unit
Thomas Wilson, the chief executive officer of Allstate Corp. has chosen a new head… for the largest unit of the insurance company, home and auto coverage, in an effort to increase residential business profits. According to a statement released by the insurer, the unit’s new president is named Matt Winter. He had previously been the life insurance business head, a role that is now being filled by the chief financial officer, Don Civgin. Equally, he will be replaced as CFO by Steve Shebik. The company also explained that for personal…
Read MoreConsumers being warned to protect their social media information from insurance companies
As social media becomes a popular tool for the insurance industry for investigating claims and, at times, pricing insurance policies, consumers are being warned to watch what information they share on their favorite networking platforms. A new study from the Paw Research Center, a market research and trend analysis firm, shows that the majority of adults in the U.S. (64%) have an active social media presence. The study finds that a scant few of these people have any knowledge on how to protect the information they share on these platforms…
Read MoreFederal Housing Administration plans to raise premiums for mortgage insurance
According to a press release from the Federal Housing Administration, the agency intends to raise the premiums for up-front mortgage insurance by 0.75 percent in order to help to rebuild its insurance fund, which has been exhausted by the real estate crisis over the last few years. Also to see increases, will be the annual premiums that will be paid on the loans themselves. Carol Galante, the acting commissioner for the Federal Housing Administration, released the statement this week, which explained that by taking these actions, it will be possible…
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