By Pat Lawrence
Jane Cline, West Virginia Insurance Commissioner |
When Jane Cline was growing up in Preston County, she only knew
she wanted to do something different, somewhere else. Her mother,
a teacher, encouraged her to get an education. Her father introduced
her to the political process. As the WV Insurance Commissioner at
a time when the insurance industry in general is in a difficult phase
and the state’s medical malpractice and health insurance have
been in crisis, she is definitely doing something different. And,
what she does touches everyone in the state.
Armed with a Business Administration degree from WVU, Jane started
as an accountant with the WV Division of Highways, obtained her MBA
and became Deputy Commissioner. Then came the appointment as
Commissioner of the WV Division of Motor Vehicles. From 1989
to 1997 she focused on improving and expanding DMV services and offices.
She enjoyed the mix of problem solving and politics, eventually opening
a government-consulting firm to share her expertise. She was
honored to be appointed by Governor Wise to the WV Insurance Commissioner's
post in January 2001. She admits wryly, “It’s been
a challenge.”
For a while, days seemed to bring one crisis after another. One company
with over 50% of physicians' malpractice began exiting the market
and another became insolvent. The 9/11 terrorist attacks overwhelmed
the insurance industry. Reinsurance markets tightened. Increases
in claims and claim severity had health and property insurers pulling
out of the state or refusing new business. The availability and
affordability of insurance products were reaching emergency stage. “This
has been one of the most difficult times the industry has experienced,"
says Cline.
The new Commissioner had to gather information to be used in resolving
the malpractice crises. Focus was placed on the Financial Conditions
Division, which evaluates companies doing business in the state. Cline
says, “Companies must be able and willing to meet their financial
obligations. All 1500 companies licensed in West Virginia aren't
active, but they must all operate according to our laws and be financially
sound.”
Consumer services have been a major priority “Insurance
is a difficult concept,” she says. “Insurance is
for catastrophic situations. Premiums aren’t a savings account;
they’re not refundable. The Consumer Service Division answers
questions, solves problems, handle disputes and helps people understand
their policy language. We have a toll free number within WV,
investigators, attorneys and a Consumer Advocate Office to help, whether
it’s an agent or agency problem or difficulty obtaining insurance.”
She says the situation with State Farm, the largest carrier in the
state, has been tough for all involved. “About every
third claim in homeowner's or auto insurance is theirs. They’ve
received significant rate increases as a result of losses in the state;
they must get rates up to cover losses. They continue to serve existing
policyholders, but aren’t accepting new business. Their situation
affects our most critical issues-availability and affordability of
insurance.”
The WV Insurance Commission collects premium taxes from all insurance
companies doing business in the state, collecting $135 million
in 2003 was collected. Cline says, “Some goes to municipal pensions,
teachers retirement, volunteer fire departments, and about $93 million
goes into general revenue. Six million is used to fund the Insurance
Commission.”
The commissioner says, “We must balance needs of consumers,
companies and agents. When consumers don’t get what they need,
or the state doesn’t get what it should, we may take administrative
action - suspend agents, agencies or companies ability to write business,
or penalize them in other ways.” The WV Insurance Commission
is also responsible for testing, licensure and fulfilling continuing
education requirements of 24,286 non-resident agents and 7,661 active
resident agents.
Cline says more improvements in the system are needed and on the
way. “We need to take advantage of improvements in technology. Companies
filing a rate increase can submit over 500 pages of paperwork. Electronic
submissions are much more efficient. We’ve begun scanning
for document storage and retrieval. We want to provide better
information to legislators –like for the study resolutions now
in the legislature. And, we want to be more responsive to the consumer
and provide more information to the public.”
She is deeply concerned about the future of health care insurance
in West Virginia. “We have the oldest population in the
US – higher than Florida- and among the highest rates of obesity,
heart disease, diabetes and smoking. We need insurers who offer
affordable health insurance and consumers who understand the effects
of unhealthy habits and unmerited claims. We’re here to
help them both.”
Contact the WV Insurance Commission at 1-800-642-9004 - 304/558-3354
or visit www.state.wv.us/insurance
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