Monthly Insurance Review

December 2022

It's Good to be Ohio Right Now by Judith L. French, Director It's good to be Ohio right now, for many reasons. When it comes to economic development, in 2022 the state landed several enormous projects, including in the areas of computer semiconductor technology, electric vehicles, and advanced batteries. Under the leadership of Governor DeWine, Ohio is creating jobs faster than they can be filled and driving emerging concepts. Not to mention in the state's insurance industry, currently ranked as one of the largest in the world. The Ohio Department of Insurance's nimble regulatory environment and consumer-protection focus is helping foster insurance job creation, innovative approaches in insurance, and a competitive marketplace that generates some of the lowest insurance premiums, on average, in the country for Ohio insurance consumers.  The root of everything we do at the department, as the state's insurance regulator, is consumer protection. One of our most important successes in 2022 was the department receiving reaccreditation from the National Association of Insurance Commissioners (NAIC), the nation's state-based insurance regulation system, for our comprehensive approach to regulating insurance company financial solvency, so that companies are financially sound to pay consumers' insurance claims.  There were other big consumer protection highlights in 2022. The federal and Ohio's no surprise billing laws became effective. The department implemented the operational parts of the Ohio law and produced educational and compliance-assistance information for consumers, the insurance industry, and health care providers.  We also stood up our Ohio Mental Health Insurance Assistance Office. Office staff strengthened our engagement with consumers, mental health advocates, health care professionals, employers, and other stakeholders by providing educational information and services around helping Ohioans navigate their mental health insurance benefits to access mental health care. Office staff can be reached at 855-GET-MHIA and getmhia@insurance.ohio.gov. In addition, department staff, including myself, took on leadership roles within the NAIC, most notably in the areas of race and insurance, innovation and technology, and life insurance and annuities to help ensure insurance marketplace competition and consumer protection. While these highlights deserve mention, some of our most important work came from what the talented department staff do day in and day out. They conducted financial analysis of insurance companies; licensed insurance companies, agencies, and agents; monitored insurance business conduct in the marketplace; reviewed insurance products and rates; took action against insurance fraud and insurance professional misconduct; and educated insurance consumers and provided complaint-resolution services. Our Consumer Services staff, available at 800-686-1526 and consumer.services@insurance.ohio.gov, addressed thousands of insurance consumer inquiries and complaints. Our Ohio Senior Health Insurance Information Program staff, available at 800-686-1578 and oshiipmail@insurance.ohio.gov, answered Medicare questions and conducted various statewide in-person and virtual educational sessions, helping thousands of Ohioans navigate Medicare.  It's good to be Ohio right now. As we move into the new year, trust that we at the department will continue to march along to our mission to provide consumer protection through education and fair but vigilant regulation while promoting a stable and competitive environment for insurance companies.

Director French Continues Outreach Engagement, Visits Westfield Insurance Ohio Department of Insurance Director Judith L. French continued her outreach engagement activity with a recent visit to Westfield Insurance, celebrating its 175th anniversary in 2023, located near Medina, Ohio. She visited and conversed with employees, including Chief Executive Officer Ed Largent. French provided insight into the economic outlook for Ohio and a regulator's perspective on the importance and strength of the state's insurance industry, one of the largest in the world, and the impact of new technologies.

Director French Restructures Office of Legal Services, Also Names Government Affairs Lead

Ohio Department of Insurance Director Judith L. French recently restructured some roles and operational aspects of the department's Office of Legal Services, including naming Whitney Fitch, formerly interim General Counsel, as Chief Legal Officer. Fitch will direct legal staff and operations with support from Sean Sheridan and Dan Bradford, both elevated to the new positions of Assistant General Counsel.

In addition, French selected George McNab, who had been serving as the department's Senior Policy Advisor, as the department's Assistant Director of Government Affairs and Stakeholder Outreach. McNab has more than 15 years of public policy experience with the Ohio Senate, Ohio Department of Agriculture, and Ohio Department of Insurance.

Portsmouth-area Resident Sentenced Three Years for Insurance Fraud An Ohio Department of Insurance investigation resulted in a three-year prison sentence for Joshua Preston on Nov. 30 in the Scioto County Court of Common Pleas. Preston, of Franklin Furnace, Ohio, was previously convicted of felony insurance fraud, felony attempted insurance fraud, and felony forgery. Charges for felony telecommunications fraud, felony aggravated theft, felony attempted grand theft, and felony identity fraud were dropped as part of a guilty plea agreement. Preston filed forged and fraudulent documents to obtain an equine mortality insurance policy with General Security National Insurance to insure a horse for $150,000. Preston subsequently filed a fraudulent death claim with the insurance company and received $150,000 in insurance proceeds. Preston also stole the identity of an associate and fraudulently obtained a $215,000 equine mortality insurance policy with Great American Insurance to insure three horses. Preston filed a fraudulent death claim on one of the horses with the insurance company and attempted to receive $95,000 in proceeds.

Get Help Navigating Mental Health Insurance Benefits Are you confused trying to understand the mental health insurance benefits that may be in a health insurance plan? The Ohio Mental Health Insurance Assistance Office, part of the Ohio Department of Insurance, helps Ohioans understand their mental health coverage and get the most from their insurance for treatment.  This free service is for individuals, families, behavioral health providers. Whether a person has health insurance through an employer, a government program, purchased it directly through an agent, or are uninsured, office staff can help. Contact the MHIA office at 855-GET-MHIA (855-438-6442) or getmhia@insurance.ohio.gov.

Amendment Process for Medicare Supplemental Policies Rule Underway

The Ohio Department of Insurance is in the process of amending a rule (3901-8-08) that administers certain permissible actions for Medicare Supplement policies. These policies help pay some of the health care costs not covered by Original Medicare. The public comment period for the rule is open and runs until Jan. 11 at midnight.

The proposed amendment found in (O)(2)(a) will expand the definition of eligible persons to include individuals who have lost state Medicaid benefits as a result of plan termination and will establish a guarantee issue opportunity for individuals that lose Medicaid benefits when the federal public health emergency ends.

Links to the rule and its business impact analysis, along with information about the comment process, are available at Rules Open For Comment | Department of Insurance (ohio.gov). To comment on the rule, send an email to ecomment@insurance.ohio.gov and call 614-644-2640 with any questions.

Are You Covered? Don’t Skip Your Winter Insurance Review

Winter can put a financial chill up your spine if you decide to skip your seasonal insurance review assuming you have adequate insurance protection. Insurance serves as a financial safety net and without appropriate coverage, the financial repercussions can be severe. 

To help jump-start an insurance review, the Ohio Department of Insurance provided answers to common winter-related insurance coverage questions.