Behind the scenes in our Consumer Advocacy program...

Not enough people know about it, but our consumer advocacy staff run a free phone hotline -- staffed by live people, not some endless phone tree -- to help you get answers to insurance questions and problems. It's 1-800-562-6900.

People call when they're unhappy with what their insurer's offering for their wrecked car, for example. They call, increasingly, because they cannot find affordable health coverage and are desperate to find coverage for loved ones. (We also have a special program, called Statewide Health Insurance Benefits Advisors, that trains hundreds of volunteers to help provide information on health insurance and Medicare options. They can be reached through the same number.)

One person called because he was unhappy with the value that an insurer put on his goat, which had met with an untimely end. (True. For what it's worth, we helped get him an extra $25 for his goat.)

Not everyone, however, speaks English-- or at least well enough to get into the details of an insurance claim and policy exclusions. So we have staff who can speak Spanish and Filipino/Tagalog, and others certified to interpret American Sign Language. We have a TTY machine. Some of our publications are available in Spanish, Chinese, Korean, Vietnamese and Russian.

And when that's not enough, we tap Language Line Services, a telephone interpreter service that can translate English into more than 150 languages (and vice versa) 24/7.

So if you know someone who's having trouble with an agent or insurer, needs help finding health coverage, etc., have them give us a call: 1-800-562-6900. We speak their language.

Seattle woman pleads guilty in insurance fraud case

A Seattle women has pleaded guilty to filing a false claim in an insurance case -- a class C felony -- after allegedly smashing her van into two parked cars and then filing an insurance claim saying the van had been stolen.

Luom Vo, 38,  was sentenced in King County Superior Court to 30 days community service and more than $4,000 in restitution and other costs.

According to Insurance Commissioner Mike Kreidler's Special Investigations Unit, Vo was driving on Seattle's Beacon Avenue just before 2 a.m. on Nov. 27, 2009 when she hit two parked vehicles: a Volvo station wagon and a Pontiac Vibe. Her Honda van was disabled in the crash. Neighbors said they saw Vo then climb into a friend's car and leave.

Later that day, Vo filed a claim with her insurer, PEMCO, saying that the van had been stolen. She subsequently insisted to a PEMCO investigator that she was not driving it when the crash happened.

The SIU investigation found that the van had not been stolen, and that she was, in fact, behind the wheel.

>129,000 in WA potentially affected in Farmers class-action settlement

At least 129,973 Washingtonians are potential members of the settlement class in a class-action case that Farmers Group and corporate parent Zurich Financial Services Group have agreed to settle for $455 million.

The companies say payments "may vary considerably", but will average $35 per policyholder, and that some 13 million policyholders may qualify for a distribution under the settlement.

 Customers with questions can contact Farmers regarding the settlement at 1-888-538-5785.

Here's our original post on this, with more details about the case and a link to Zurich's press release.

Tacoma couple sentenced in insurance-fraud case

A Tacoma couple who filed a falsified insurance claim, including a forged receipt for a 57-inch TV allegedly purchased from a stranger for $5,800 in cash, have been sentenced.

They also claimed that burglars had stolen a $3,000 Persian rug they'd purchased from their next-door neighbor. When investigators from the state insurance commissioner's Special Investigations Unit questioned the neighbor, he said he'd never sold them a Persian rug, and that the couple was looking for someone to pretend to be the seller so they could collect money from their insurance company.

The couple, Melissa and Anthony Mezias, brought $8,800 in restitution to their sentencing hearing in Pierce County Superior Court on Monday.

In addition to full restitution, Anthony Mezias will have to pay more than $1,000 in court fees and costs on one charge of first-degree theft. Melissa Mezias will pay $700 in fees and costs on one count of attempted false claims in an insurance case. 

$455 million Farmers settlement: Payments to up to 13 million policyholders

Zurich Financial Services Group said this morning that it and Farmers Group -- which it owns -- have "agreed in principle" to a $455 million settlement of a national class action lawsuit filed in California.

The settlement will affect up to 13 million people.

Here's a copy of Zurich's press release.

We're not sure yet how many of those 13 million people are in Washington state, although we're trying to find out. The settlement payments "may vary considerably," the company says, but will average $35 per policyholder.

What was the lawsuit about? Here's Zurich's summary:

In the lawsuit, the plaintiff challenged the management services fees paid by the Farmers Exchanges (Exchanges) to FGI and certain of its affiliates, which under policyholder subscription agreements act as the attorney-in-fact for policyholder subscribers of the Exchanges.

After our approval, policyholders entitled to participate in the settlement will be mailed notification, with more details. Customers can also contact Farmers regarding the settlement at 1-888-538-5785.

(Note: And thanks to the eagle-eyed reader -- and you know who you are -- who noted that "our" was misspelled "ourt" in the last paragraph. Fixed.)

New listserv for Washington state insurance agents and brokers

We've set up a listserv for Washington state insurance agents and brokers who would like to get occasional updates from our office. We're the office that regulates the insurance industry in Washington state.

We foresee periodically sending out updates about things affecting producers (which is the industry, regulatory and legal term for agents and brokers).

We received a lot of questions, for example, about the changes that started taking effect Sept. 23 under the new federal health care reform law. And a lot about the new "group of one" state law.

Click here to subscribe or unsubscribe.

Federal flood insurance program, after repeatedly lapsing this year, is reauthorized for another year

The National Flood Insurance Program, a critical protection in many Washington communities, has been reauthorized for another year. President Barack Obama signed S. 3814 into law Thursday, extending the federal flood insurance program through Sept. 30, 2011.


“This can be important and affordable coverage for property owners and renters in flood-prone areas,” said Washington State Insurance Commissioner Mike Kreidler. Many lenders require flood coverage in order to qualify for mortgages in flood zones.

The program lapsed several times this year, and was slated to lapse again at the end of September. During lapses, flood policies remain in force for those who have them, but new policies cannot be written or renewed.

“While the program needs changes to make it more financially sustainable, this move by the President and Congress gives property owners another year of stability and protection,” said Kreidler.

Standard homeowners policies do not cover flooding, Kreidler said. Property owners should strongly consider the federal flood coverage, he said, which is widely available.

This summer, Kreidler established a program, the Washington Flood Market Assistance Plan, to help businesses obtain additional private insurance in south King County’s Green River Valley.