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Georgia Insurance Commissioner wants board members' resignations

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Georgia Insurance Commissioner wants board members' resignations

 

There is a major shake-up underway at the Office of Insurance and Fire Safety Commission. After six weeks on the job, Georgia's new Insurance Commissioner, John King, has requested the resignation of the entire board of directors of the Georgia Underwriting Association.

 

Governor Kemp suspended the newly elected Beck after the indictment was unsealed. The Governor appointed John King as the new commissioner. Beck pleaded not guilty to the charges.

"Those are one of the first tasks the Governor has asked me to work really hard to re-establish that confidence in the public of Georgia in the leadership of this agency," said King.

King, former police chief of Doraville and a Major General in the Georgia National Guard, comes to the job with no background in insurance, but with a sharp eye for potential trouble.

"Looking at some of the folks that got brought in, they have no business in government service," said King.

King has fired some employees and reassigned others.  He plans to examine GUA's operations and financial stability, but he is not going to investigate a now two-year-old arson of a property owned by Jim Beck.

Earlier the I-Team reported on a number of troubling issues involving the 2017 arson of a Carrollton property owned by Jim Beck. 

The FOX 5 I-team obtained a copy of Beck's insurance application that showed Beck nearly doubled his insurance coverage, from $95,000 to $186,000 just two weeks before the arson.

Beck told us the increase was because of renovations he was doing.

"So, because, if for example, if you have an unfinished basement in your home and you finish it you really are under an obligation to tell the insurance company you've done it because you've materially changed what they are insuring," said Beck.

 An internal memo written by an Insurance Department lawyer at the time, obtained by the I-Team, stated:

"We are concerned the insurance could have been obtained under false pretenses" and "GUA did not report suspected insurance fraud."

"The allegations are disturbing; the way the case rolled out," said King.

King says his Fire Marshal's office, by law, cannot investigate the arson unless they are requested to do so by local law enforcement. He says he believes the Carroll County district attorney and the FBI know the facts of the case. 

"I'm pretty sure they are aware of those circumstances," said King.

Beck has declared his innocence and could return to his old job if a jury finds him not guilty. King says he will be ready to step aside if that happens.

"Would you run against him?" I asked.  "Absolutely. No doubt in my mind.  This agency touches so many Georgians in so many ways, they deserve an ethical, moral leader who will do the right thing every day," said King.

 
 
Click the link to the entire article 

 

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10 minutes ago, ivylove said:

LPPT, what does the Georgia Underwriting Association do exactly, anyway?    

Some boilerplate PR:

Georgia Underwriting Association mission

 

The Georgia Underwriting Association (GUA) functions as a residual insurance market in order that basic property and liability insurance may be made available to all Georgians. The GUA promotes the health and welfare of the community by only insuring risks that are maintained or improved to meet minimum safety standards. The Insurance industry holds an important place in society. GUA, as a complement to the private market, provides peace of mind for thousands of Georgia individuals, families and businesses who may not find other insurance readily available. And during those unthinkable times when natural disaster hits, we provide the means of recovery for people and communities in need. Beyond this essential mission of providing insurance for the citizens of Georgia, we work with our membership to fight arson, improve home safety, and to reduce the loss of lives and property from natural disasters.

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2 minutes ago, ivylove said:

LPPT, what does the Georgia Underwriting Association do exactly, anyway?    

I think in the simplest terms possible they are insuring through the state. I think it is a little bit like an insurance company run by the state for people that can not get it any other way, I think they are extremely high risk. He wrote those policies then billed the state for them. Then turned around and ran as commissioner effectively securing his deals or so he thought.  I also think the state supplements the policy making the insurance affordable. So the state and homeowner paid the premiums to Beck. I assume it was supposed to go into a fund to pay claims. I am not well versed in this so don't hold me to too much detail.

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Insurance is really confusing to me.  All I really understand is that I have to pay premiums, and they sure have been going up a lot in recent years. 

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Just now, ivylove said:

Insurance is really confusing to me.  All I really understand is that I have to pay premiums, and they sure have been going up a lot in recent years. 

My understanding is they put your premiums in the bank and collect interest. When they have to pay our claim they lose interest on that money. That is why they take forever to pay claims. Insurance is suitable for inanimate objects, the company makes profit by investing and paying far fewer claims in some cases through depreciation. With health insurance they only profit is they don't pay claims or pay them fully. There is more than enough money to pay for all the healthcare Americans need when you cut out insurance. A lot of money is diverted through paying for processing instead of paying into the healthcare system with no middleman. I think we are are protected by law from other types of insurance companies doing things with money that can prevent the payment of claims. I think that health insurance is the exception to that they can take their percentage of profit off the front end and then adjust the rates for us and the provider.

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Thanks LPPT and Blunt Trauma!   I think I understand a bit more now!   But does the Georgia Underwriting Association play a role in our health insurance, also?  (I am still unclear on that)  I was kinda thinking they were just connected to property insurance. 

Edited by ivylove

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5 minutes ago, ivylove said:

Thanks LPPT and Blunt Trauma!   I think I understand a bit more now!   But does the Georgia Underwriting Association play a role in our health insurance, also?  (I am still unclear on that)  I was kinda thinking they were just connected to property insurance. 

This oughta cover it. Hope you gots some time:

Georgia Underwriting Association – The FAIR Plan


The Georgia Underwriting Association or FAIR Plan was implemented by the legislature as a residual insurance market offering homeowners insurance to those residents who are unable to obtain coverage through the private marketplace after being deemed "high risk" often due to filing claims. The GUA of FAIR Plan acts as a complement to the private market and provides peace of mind to Georgians who are left out of the private market due to the area they own property in or because of the dwelling or building they have purchased. The GUA also works with the membership to fight arson, improve safety and to reduce the loss of lives and property as a result of natural disasters.

The Plan is especially needed in coastal and island areas such as Savannah where the private insurance companies fear to tread. In these areas, many homeowners are deemed high risk even if they have never filed a homeowners insurance claim. Although coastal areas are better known for being high risk windstorm areas, the state has its share of winter storms, hailstorms and severe weather that arrives often without warning. For those owners of private residents and businesses who cannot obtain insurance in the private market, the Georgia Underwriting Association makes obtaining the necessary high risk home insurance possible.

The Georgia Underwriting Association operates similar to other state FAIR Plans in that applicant properties are inspected upon receipt of the homeowners application. Authorized agents are available to make application on behalf of customers seeking coverage in the FAIR Plan. The policies issued are typically written on standard forms and provide many of the coverages available in the private marketplace subject to certain limitations that are approved by the Georgia Insurance Commissioner. 

Policies written by the Georgia FAIR Plan are assigned to the member companies (private insurers) and profits and losses are spread according to each member’s percentage of accepted risk. As with other state FAIR Plans, Georgia residents have the option of the Georgia Underwriting Association as a last resort to make insurance coverage available for those dwellings or commercial buildings when the homeowners risk is too high and the private insurance marketplace has made it difficult to obtain coverage.

As with all FAIR Plans, consumers are urged to try to find coverage in the private market and we can help you find an agent that can help you find alternatives to the FAIR Plan.

Edited by Blunt Trauma
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These type pools/programs are also in place for automobile and worker's comp insurance, although specialty auto insurers have pretty much made insurance available at some price level in the voluntary market for all consumers.   

 

 

 

 

 

 

 

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