The insurance industry today faces the daunting challenge of maintaining operational efficiency in the wake of increased competition and the dynamic economic environs. These apart, insurance companies have to deal with closed book policies that involve high cost of maintenance, managing legacy systems and low returns. Insurance closed books have been at the center of serious debate in recent years.
Closed books are essentially policies that are no longer sold, but are still featured on the books of a life carrier as premium paying policies. Closed books are generated either due to the discontinuation of unprofitable products or as a result of mergers and acquisitions.
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on California SIU Regulations
By statute, the state of California requires all admitted insurers to maintain a Special Investigative Unit (an "SIU") that complies with the requirements set forth in the Special Investigative Unit Regulations (the "SIU Regulations") and that the insurer must train all integral anti-fraud personnel to recognize indicators of insurance fraud. Since almost every employee of an insurer who approaches a claim qualifies as "integral anti-fraud personnel" they must all be trained annually.
It is necessary, therefore, that insurance personnel who are engaged in any way in the presentation, processing, or negotiation of insurance claims in California be familiar with the SIU Regulations imposed by the state on all insurers doing business in the state and be in a position to prove to the California Department of Insurance that the SIU Regulations have been complied with and all integral anti-fraud personnel have been trained.
