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Utah Insurance

As Millennials Approach 40, Life Insurance Should Be On The Agenda — But Many Aren’t Prepared

Understanding a beneficiary’s responsibility is part of any preparation checklist.

Today’s millennials (24–39 years old) are getting older, and along with an impending milestone birthday as the first in the generation turns 40, they’re also more likely to be the owners and beneficiaries of life insurance policies. Along with new life insurance policies come responsibilities to share and be aware of key information that will ensure that benefits get paid when needed.

There is a clear need for better communication about life insurance policies across all generations, according to a new survey by the National Association of Insurance Commissioners (NAIC). When the beneficiary is younger and potentially newer to the experience, the issue is even more significant. Overall, 55% of millennials surveyed said they are listed as a beneficiary on a friend’s or relative’s life insurance policy, yet only 30% said they are prepared for that role.

Lack of preparation — i.e., sharing and being aware of basic information about policies — leads to millions of dollars in unclaimed benefits each year by beneficiaries who can’t find or don’t know about loved ones’ policies.

“Millennials are entering the stage of life where life insurance policies may, unfortunately, be paid and it’s important for them to know how that process works,” said Utah Insurance Commissioner Todd E. Kiser. “Many are, or should be, thinking about how to provide for their loved ones in the future. A life insurance policy often offers a better benefit when it is purchased earlier rather than later.”

Beneficiaries Should Know Policy Basics

Millennials, who have grown up with cell phones and social media, recognize the power of communication and transparency. That’s good news for buyers and their beneficiaries, who need to significantly improve their game when it comes to sharing and being aware of information about life insurance policies. According to the survey, only 29% of millennial beneficiaries say they know where the policy is kept, 30% know the name of the insurance carrier, and 26% know the benefit amount.

Whether the owner of the policy or the beneficiary, it can be helpful to consider the information as part of a three-part checklist that includes knowing the answers to:

  1. Who is the carrier?
  2. What is the benefit amount?
  3. Where is the policy stored?

To help consumers who do not have all the information that they need, the NAIC maintains a Life Insurance Policy Locator (LIPL) tool. The LIPL has helped consumers claim more than $650 million in benefits since its introduction in 2016. It’s free to use and available online, eliminating the need to contact multiple companies or agents to find a policy or identify whether there is a policy.

Survey Methodology

The NAIC surveyed more than 1,000 consumers online using SurveyMonkey between Jan. 2–13, 2020. Respondents included approximately equal numbers of Generation Z (18–23 years old), millennials (24–39 years old) and baby boomers (56–74 years old).

Press Release
As Millennials Approach 40, Life Insurance Should Be On The Agenda — But Many Aren’t Prepared

Magna Earthquake Individual Assistance from FEMA available for residents of Davis and Salt Lake Counties

*This is a joint news release by the Utah Division of Emergency Management and the Federal Emergency Management Agency*

Salt Lake and Davis County Residents with March Earthquake Losses Can Register with FEMA

SALT LAKE CITY – Utah homeowners and renters in Salt Lake and Davis counties who had uninsured losses from the March 18 earthquake may be eligible for federal disaster assistance from FEMA.

FEMA has programs that provide financial help with temporary housing expenses, basic home repairs and other essential disaster-related needs.

First, if you haven’t already done so, contact your insurance company and file a claim for the disaster-caused damage. You don’t have to wait to start cleaning up, but be sure to take photographs or video of the damage and keep all receipts for repair work.

If you still have uninsured or underinsured losses, register with FEMA. Registration is free and doesn’t take long. You can register in several ways:

  • Visit DisasterAssistance.gov and click on “Apply Online”
  • Download the FEMA App for smartphones
  • Call 800-621-3362 (800-462-7585 TTY). Multilingual operators are available. The toll-free numbers are open every day from 7 a.m. to 10 p.m. MDT.
  • Information about how to apply for low-interest SBA loans for businesses and residents is available online at www.SBA.gov/disaster. You may also call 800-659-2955 or email disastercustomerservice@sba.gov. TTY users may call 800-877-8339.

SBA offers federal low-interest disaster loans to businesses of all sizes, most private nonprofit organizations, homeowners and renters.

It is helpful to have the following information available when you register:

  • Address of the dwelling/structure where the damage occurred (pre-disaster address)
  • Current mailing address
  • Current telephone number
  • Insurance information
  • Total household annual income
  • Routing and account number for checking or savings account (this allows FEMA to directly transfer disaster assistance funds into a bank account)
  • A description of disaster-caused damage and losses

In conjunction with the Utah Division of Emergency Management, and in consideration of the pandemic, FEMA personnel will work remotely from alternative workspaces until further notice. Health and safety are the highest priorities—for Utahns and for FEMA personnel assisting recovery.

If you reported that you may not be able to live safely in your home, it may be necessary for FEMA to perform an inspection of the damaged dwelling. Because of the pandemic, FEMA field inspection will usually be conducted remotely.

For remote inspections, FEMA inspectors will contact applicants by phone to answer questions about the type and extent of damage sustained. Remote inspections provide a new way of evaluating damage, comparable to traditional, in-person inspections, and this expedites the delivery of recovery assistance.

Survivors with minimal damage who can live in their homes will not automatically be scheduled for a home inspection when applying to FEMA. However, they may request an inspection if significant disaster-caused damage is discovered later.

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FEMA’s mission is helping people before, during, and after disasters.

For further media inquiries, contact DEM Interim PIO, Wade Mathews at wmathews@utah.gov or DPS PIO, Joe Dougherty at jdougherty@utah.gov.

Download the news release here.

Remote Testing Now Available for Utah Licensees

Prometric is now offering a remote testing and proctoring tool for insurance licensees in Utah. Licensees can now take their license examinations at a Prometric test center or online using the ProProctor tool.

The system uses advanced AI and live proctoring staff to ensure testing is fair, reliable, and accurate. More information is available on Prometric’s website.

Fingerprinting must still be done in person at a Prometric testing site.

Order 2020-3: Amended Order Eliminating Application Process for Issuing a Temporary Resident Individual Producer License

The Utah Insurance Commissioner finds as follows:

1. The Utah Insurance Commissioner entered the Order Establishing Standards for Obtaining and a Process for Issuing a Temporary Resident Individual Producer License dated April 21, 2020.
2. On June 1, 2020, the Utah Insurance Department’s license testing vendor, Prometric, will open its facilities in Utah for the purpose of testing and taking fingerprints of candidates for a Utah two-year resident individual producer license.
3. With the opening of Prometric’s facilities, there is no longer a need for a temporary resident individual producer license in Utah.

Based on the above findings, and pursuant to Utah Code §§ 31A-2-201(4) and 31A-23a-114(5), the Commissioner enters the following Order:

1. Effective June 15, 2020, the Insurance Department will not accept an application for a temporary resident individual producer license.
2. Effective June 1, 2020, the Insurance Department will accept an application for a two-year resident individual producer license. The application shall be submitted electronically using SIRCON or NIPR.
3. An application for a temporary resident individual producer license that is pending on June 15, 2020 will be processed in the ordinary course of business unless withdrawn.
4. A current temporary license is valid for 180 days from date of issuance.
5. A current temporary license will be inactivated if its holder obtains a two-year resident individual producer license before the end of the temporary license period.
6. A temporary license holder is subject to the conditions and requirements of the Order Establishing Standards for Obtaining and a Process for Issuing a Temporary Resident Individual Producer License dated April 21, 2020.

Dated: May 27, 2020

/s/ Todd E. Kiser
Utah Insurance Commissioner

PDF Version
Order of the Commissioner 2020-3: Amended Order Eliminating Application Process for Issuing a Temporary Resident Individual Producer License

Don’t Stimulate Fraud

Economic stimulus payments arriving now from the federal government are an enticing target for scammers. They have many too-good-to-be-true methods for taking your money:

  • Stimulus payment scams — Fake phone calls and phishing schemes try to get your stimulus cash. The IRS won’t phone, text, or email you about your payment and won’t require a fee to get it.
  • Contractor scams — Con artists may try to persuade you to sign over your stimulus payment or charge your insurance for poor home improvement work or damage repair.
  • Fake insurance protections — Scammers are offering low-priced “corona insurance” to cover COVID-19 treatment. Just hang up.
  • Trip cancellation insurance — Standard travel insurance may not cover pandemics. Be wary of offers that cover COVID-19 related trip cancellations.

If you have suspect an insurance scheme, report it safely, easily, and anonymously at https://insurance.utah.gov/consumer/fraud/report-fraud.

Don’t Stimulate Fraud

Health Care’s Limited Coverage Areas

Not all health plans are the same — be sure you know what you’re signing up for

With COVID-19 on the minds of all Utahns, many people are looking at their coverage options. Consumer protection laws govern many types of health coverage, like plans purchased through an employer or through the Health Insurance Marketplace, but other types of plans aren’t required to protect consumers in the same way. Consumers who use health care sharing ministries (HCSMs), discount plans, or medical retainer agreements can best protect themselves by understanding the coverage they participate in.

“Some consumers may find value in these sorts of health care products, but they need to understand that they are not insurance and do not guarantee coverage,” said Todd E. Kiser, Utah Insurance Commissioner. “Consumers who choose these products should make sure they know how they work and what risks they present. Be especially wary of any company advertising membership discounts during the COVID-19 pandemic.”

Health Care Sharing Ministries

You may hear about HCSMs when talking to neighbors or searching online. HCSMs are organizations in which the members share the costs of health care and usually have common ethical or religious beliefs. However, before you sign up for an HCSM, there are some things you should know:

  • HCSMs are not insurance and don’t guarantee payment of claims. While they may share funds with members who have health needs, they are not legally required to do so.
  • HCSMs do not have to comply with the consumer protections of the federal Affordable Care Act (ACA) or state law, like covering treatments for wellness visits and pre-existing conditions, or capping your out-of-pocket costs and imposing lifetime limits.
  • HCSMs may provide value to some people, but they pose a risk to others because they provide limited benefits.
  • The Utah Insurance Department does not regulate or supervise HCSMs.

A member typically contributes a monthly “share” to cover the qualifying medical expenses of other members. The HCSM then administers payments to members, whether by pooling the contributions or by matching a paying member directly with someone who needs help paying for care. Some people look to HCSMs because of their lower up-front costs compared to ACA plans.

Discount Plans

You might receive advertisements from plans offering discounts on health care services for a monthly fee. These are not health insurance plans, and participants do not have the same protections as they do under health insurance plans. Be sure to thoroughly investigate any plan promising deep discounts for a “low” monthly fee and weigh the benefits against the cost carefully.

Medical Retainer Agreements and Concierge Medicine

Medical retainer agreements and some concierge medicine agreements are agreements between a health care provider and an individual patient to provide routine health care services. These agreements are not insurance and do not have the same protections as health insurance. They provide a limited scope of health care services. The Utah Insurance Department does not regulate or supervise these agreements.

The Bottom Line

HCSMs, discount plans, and medical retainer agreements are not health insurance plans, are not as comprehensive as health insurance, and offer limited benefits. Before signing up, be sure to understand how the program works and what benefits you or your family can count on.

For more information about HCSMs, discount plans, and medical retainer agreements, contact the Utah Insurance Department’s Health & Life Division at 801-538-3077 or health.uid@utah.gov.

Press Release
Health Care’s Limited Coverage Areas

Order 2020-1: Order Establishing Standards for Obtaining and a Process for Issuing a Temporary Resident Individual Producer License

The Utah Insurance Commissioner finds as follows:

1. Due to social distancing restrictions from the COVID-19 pandemic, the Utah Insurance Department’s license testing vendor, Prometric, has temporarily closed its facilities in Utah.
2. As a result of the closure, a person who seeks a resident individual producer license is unable to apply.
3. Consistent with Utah Code § 31A-23a-114(1)(a)(ii)(A), the public interest will best be served by providing standards for obtaining and a process for issuing a temporary resident individual producer license.
4. Consistent with Utah Code § 31A-23a-114(5)(a)(i), the limitations on the authority of a temporary licensee as set forth in the Order below are necessary to protect insureds and the public.

Based on the above findings, and pursuant to Utah Code §§ 31A-2-201(4) and 31A-23a-114(5), the Commissioner enters the following Order:

1. The Insurance Department may issue a temporary resident individual producer license to a person who satisfies the requirements of this Order. A holder of a temporary resident license is not eligible for a non-resident license in another state.
2. Beginning April 23, 2020, a license application will be available through and shall be submitted electronically using SIRCON.
3. An applicant shall submit the following as an attachment to the license application using SIRCON’s attachment utility feature:
A. proof that the applicant, during the temporary license period, will be affiliated with and sponsored by a licensed insurance company or by a licensed agency producer that is in good standing with the Department and is responsible for the applicant’s acts occurring in the course and scope of the temporary licensure;
B. proof that the applicant will be supervised on the job by a licensed individual producer who is in good standing with the Department and who is affiliated with the sponsoring insurance company or agency;
C. proof that the applicant has successfully completed 40 hours of training in the line(s) of authority for which a license is sought as identified in the Exam Content Outlines of the Utah Insurance Department License Information Bulletin, https://insurance.utah.gov/wp-content/uploads/LicensingBulletin.pdf; and
D. proof that the sponsoring insurance company or agency will immediately notify the Department if the applicant’s affiliation or sponsorship ends before the last day of the temporary license period.
4. The requirements of paragraph 3 above can be satisfied by submitting a completed Certification of Compliance with Temporary License Requirements, attached. The Certification is also available on the Department’s website. The Certification must be signed and dated by an owner, partner, officer, or designated responsible licensed producer of the sponsoring insurance company or agency.
5. An application will be denied if the applicant:
A. fails to submit sufficient proof as required in paragraph 3 above;
B. has a felony conviction or a misdemeanor conviction involving fraud, misrepresentation, theft, or dishonesty; or
C. has a pending criminal proceeding in which the applicant is charged with a felony or a misdemeanor involving fraud, misrepresentation, theft, or dishonesty.
7. A license is valid for 180 days from date of issuance. The Commissioner may exercise discretion to shorten this period if the license testing vendor opens its facilities before the temporary license expires. The Commissioner will inactivate a temporary license if the licensee obtains a two-year individual producer license before the end of the temporary license period.
8. A temporary licensee may represent only the following: the sponsoring insurance company and its affiliates; the sponsoring agency and insurance companies to which the agency is appointed.
9. A temporary license may be revoked at any time if the licensee:
A. is not affiliated with and sponsored by the sponsoring insurance company or agency identified in the licensee’s application;
B. is not supervised on the job by a licensed individual producer who is in good standing with the Department and who is affiliated with the sponsoring insurance company or agency identified in the licensee’s application;
C. has a felony conviction or a misdemeanor conviction involving fraud, misrepresentation, theft, or dishonesty; or
D. has a pending criminal proceeding in which the applicant is charged with a felony or a misdemeanor involving fraud, misrepresentation, theft, or dishonesty.
10. The legal grounds for denying, suspending, or revoking a two-year individual producer license, and the legal grounds for penalizing a two-year individual producer licensee, apply equally to a temporary license and licensee.

Dated: April 21, 2020

/s/ Todd E. Kiser
Utah Insurance Commissioner

PDF Version
Order of the Commissioner 2020-1: Order Establishing Standards for Obtaining and a Process for Issuing a Temporary Resident Individual Producer License
Certification of Compliance with Temporary License Requirements

COVID-19 and Workers Comp Fraud

As employers and employees are getting used to new work arrangements, it’s important to consider how they relate to workers compensation insurance.

  1. Remote: Work from home orders are redefining what a work injury may mean.
  2. Quarantine Injury Claims: When workers work from home, what counts as a workplace?
  3. Telemedicine: Telemedicine visits are convenient but may not cover all workplace injury needs.
  4. Be Honest: Employers and insurers need to share information with employees on what is covered and how to report a claim.
  5. Stop the Fraud: Committing fraud ruins careers and lives. Report all suspected insurance fraud to the Fraud Division at https://insurance.utah.gov/consumer/fraud/report-fraud.

COVID-19 and Workers Comp Fraud