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PHOENIX—Residents affected by the Wallow Fire may think the worst is over after the flames are extinguished but without proper preparation, a flooding disaster can be around the corner. Wildfire alters the landscape in ways that increase water and mud runoff in burned areas. Under normal circumstances, the forest floor drains, dissipates and absorbs water effectively enough to reduce flooding downstream. Burned forest areas are more unstable and less able to hold water, collecting downstream with increased velocity and often resulting in urban and flash flooding.
In the course of investigating a complaint, the Arizona Department of Insurance (ADOI) found that American Family Mutual Insurance Company (American Family Mutual), the third largest homeowner insurance company in Arizona, underpaid more than 5,000 Arizona homeowner insurance claims arising from last year’s winter storm (January 2010) and hail storm (October 2010).
The Arizona Department of Insurance (ADOI) ordered an Arizona building contractor, True-Built Construction, LLC (Weston Farnes), to stop acting as an insurance adjuster without a license. Arizona insurance law requires any person who “adjusts, investigates or negotiates settlement of claims” to have a license from the ADOI.
Phoenix - Gevorg Melkonyan and Elina Arutyunova have been criminally charged for their role in stealing the medical identity of several Arizona patients and then falsely billing insurance companies for medical services never provided. Their conduct created an inaccurate, and potentially harmful, medical history for the patients involved and an administrative headache for the doctors whose names were falsely used.
Phoenix – Wayne Hallock was charged in Yavapai County on 16 felony counts for making false claims under his workers’ compensation insurance.
Consumers who purchased a health benefit plan from an unlicensed health benefits company called American Trade Association, Inc. (ATA), or its affiliates (American Trade Association LLC, Smart Data Solutions, LLC or Serve America Assurance) have until August 31, 2010, to seek a refund on payments made for this unauthorized and possibly fictional “insurance” product.
PHOENIX - Insurance Director, Christina Urias, announced the results of an examination of Health Net of Arizona, Inc. (HN) and Health Net Life Insurance Company (HNLIC). On February 10, 2010, the Arizona Department of Insurance (ADOI) ordered the companies to pay civil penalties of $83,500 and $153,000, respectively, for insurance law violations that occurred between January 1, 2007 and December 31, 2008. ADOI ordered the companies to take immediate action to correct health care appeals and claims handling violations and healthcare provider grievances.
The Arizona Department of Insurance Fraud Unit and the Mesa Police arrested two suspects accused of staging a slip-and-fall accident for insurance money.
Insurance Director, Christina Urias, announced the results of the Arizona Department of Insurance (ADOI) market conduct examinations of Aetna Life Insurance Company and Aetna Health, Inc., which exposed multiple violations of Arizona insurance laws. ADOI ordered the companies to pay civil penalties of $57,250 and $199,250, respectively, and implement corrective action plans to address the violations.
PHOENIX – On May 12, 2009, Insurance Director Christina Urias ordered National Home Protection, Inc (NHP) to immediately Cease and Desist offering or soliciting home warranty service contracts, and to stop taking or receiving any premium or fees for any warranty service contracts in Arizona.