CFO Sink Implements New Tool To Save Money, Improve Service

Chief Financial Officer Alex Sink announced today that the Florida is the first in the nation to implement the use of a new National Association of Insurance Commissioners (“NAIC”) Web-based application designed to facilitate claimants in an insurance receivership.

CFO Sink’s press release on the rollout is first below, followed by the NAIC’s release on the same.

Should you have any questions or comments, please do not hesitate to contact this office.

 

CFO Sink Implements New Tool To Save Money, Improve Service

TALLAHASSEE—Florida Chief Financial Officer Alex Sink announced today that Florida is the first state to implement the use of a new program that will improve services and save money in the administration of insurance company receiverships.

The Department of Financial Services (DFS), Division of Rehabilitation and Liquidation, recently used ClaimNet, a Web-based application that makes it easier for claimants in a receivership to submit a claim, update a claim or check on the status of an existing claim. The National Association of Insurance Commissioners (NAIC) launched ClaimNet in December 2006 to provide a uniform method for collecting and processing a receivership’s claims data.  Florida recently used the program for a receivership with more than 1,400 policies, and nearly half of the claimants used the program to submit their claims on line, saving money and time.

 “As Florida’s fiscal watchdog, I am continually working to improve services and find ways to save taxpayer dollars,” said CFO Sink, who oversees the department. “Processing claims is one of the largest and costliest tasks associated with a receivership or liquidation, which can be a financial and emotional burden for consumers.  With this program, we have improved the process and will have more funds to pay claims.”

DFS serves as receiver of any insurance company placed into receivership in Florida.  The Division of Rehabilitation and Liquidation is responsible for performing the duties of the Department of Financial Services in the department’s capacity as receiver. The basic responsibilities of the receiver include the collection of assets or debts due to the company and the evaluation of all known claims against the company.

For more information on the duties and responsibilities of a receiver, log on to http://www.MyFloridaCFO.com/Receiver/ or call 1-877-MyFLCFO.

 

New Regulatory Tool Expedites Claims, Saves Money

Florida First State to Use NAIC’s ClaimNet Application

HOUSTON (Dec. 3, 2007) — The National Association of Insurance Commissioners (NAIC) today announced that Florida has completed a successful first use of ClaimNet, a new regulatory tool that provides a more efficient, cost-effective way of administering certain aspects of insurance company receiverships.

ClaimNet is a Web-based application that allows a receivership’s claimants to easily submit a proof-of-claim, file objections and update or inquire about the status of an existing claim. Florida recently utilized ClaimNet for receivership with more than 1,400 policies.

“As Florida’s fiscal watchdog, I am continually working to improve services and find ways to save taxpayer dollars,” said Florida Chief Financial Officer Alex Sink, who oversees the Florida Division of Rehabilitation and Liquidation. “Processing claims is one of the largest and costliest tasks associated with a receivership or liquidation, which can be a financial and emotional burden for consumers. With this program, we have improved the process and will have more funds to pay claims.”

During Florida’s test of ClaimNet, 49% of the receivership’s claimants used the application to submit their proof-of-claim.

“The primary reason for ordering an insurer into receivership is to help protect the financial well-being of insurance consumers,” said Florida Insurance Commissioner Kevin McCarty. “Once this determination has been made, continued protection of the company’s assets and claims-paying ability is paramount — and ClaimNet is an outstanding regulatory tool that helps do just that.”

Launched in December 2006, ClaimNet was developed by the NAIC to provide state insurance regulators with a uniform method for collecting and processing a receivership’s claims data. For more information about ClaimNet, visit www.naic.org/committees_e_receivership.htm.

 

To view the ClaimNet Project Managers Summary, click here. 

To view the ClaimNet Implementation Overview, click here.