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OKLAHOMA
VOICE
With July "Pulse of the Agent's"  Opinion Poll Results
Published monthly by UFAA Chapter 15 Eastern Oklahoma.Chapter 15 meets the
first Wednesday of each month. |
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Next Chapter 15 Member Meeting: Wednesday August 5th 11:30 AM
Green Onion Restaurant 4532 E 51st Tulsa. Non-members welcome
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Mission Statement
The United Farmers Agents Association -UFAA- is a professional association committed to helping our members through education, communication, support and information and to establish a true partnership with Farmers Group, Inc.
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Oklahoma UFAA Contacts:
UFAA Chapter 15 serving Eastern Oklahoma
President- Mike Gately 918/481-3277 -Tulsa
UFAA Chapter 12 serving Central-Western Oklahoma:
President- Tony Reese 580/355-1335 - Lawton
To join an Oklahoma UFAA Chapter
choose one closest to you
and contact the chapter. Or,
Sign up at UFAA Web site.
United Farmers Agents Association Web Site
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A.M. Best Special Report: U.S. Property & Casualty Earnings Down 87%
On Underwriting and Investment Losses:
OLDWICK, N.J., JULY 13, 2009
The
U.S. property/casualty's net income plunged approximately 87% to $1.2
billion in first quarter 2009, as challenging underwriting and
investment markets continued to drag down results. The year-over-year
decline in earnings was primarily due to the severe and prolonged
turmoil in the financial markets and the related impact on the
industry's net investment income and realized capital losses.
The following results are for first quarter 2009, year over year.
-- Net premiums written (NPW) fell $4.2 billion, or 3.8%, to $107.6 billion from $111.8 billion.
-- The industry recorded an underwriting loss of $0.8 billion, driven
by continued rate pressure, lower top line growth, weather-related
losses and the impact of significant losses reported by mortgage and
financial guaranty insurers.
-- The combined ratio rose to 100.5 from 99.8.
-- The mortgage and financial guaranty segments reported an
underwriting loss of $1.9 billion and posted a combined ratio of 220.8,
adding approximately two percentage points to the industry's combined
ratio.
-- Net investment gains fell $8.7 billion to $4.4 billion, down from $13.1 billion.
-- The personal lines segment's underwriting results deteriorated, with
a reported calendar year combined ratio of 100.7, up from 98.4.
-- The commercial lines segment's combined ratio improved modestly to 101.2, compared with 102.1.
-- The U.S reinsurance segment posted a healthy combined ratio of 94.3, compared with 92.9.
In other measures:
-- The industry's policyholder surplus declined $82.0 billion, or
15.5%, to $447.2 billion for the 12 months ended March 31, 2009.
-- The annualized after-tax return on equity fell to 0.2% for the 12
months ended March 31, 2009, down from 1.8% for the 12 months ended
March 31, 2008.
As expected, 2009 is shaping up to be another challenging year for the
U.S. property/casualty industry, and the unfavorable economic,
investment and underwriting environments are expected to continue
straining underwriting and operating results through the remainder of
the year.
Farmers
tight tactics and penny-pinching ways may have positioned us well for
the future. Looks like it might be time for the industry to stop the
premium give-away and catch up with our rates. It remains to be seen
if our adverse book of remaining business will hinder any expected
advantages as GWP approaches break-even point. -ed
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 Agent Redefines GWP
Dear Okla Voice,
The Insurance Industry bases most everything, including company growth on GWP or Gross Written Premiums, the same that corporate has based their bonuses. PIF or Policies in Force has become nearly extinct in industry terms. But, now, there is a new field definitions of GWP in this company meaning Growth Without Policies. Here's the stats.
As they say- "GREAT THINGS ARE HAPPENING IN OKLAHOMA?"
Date H/Hs PIF (est @ 2.1 per h/h)
DEC-08 271,810 570,801
JUN-09 262,254 550,733
Loss -9,556 -20,068
It is estimated over the last 10 years- 06/09 with 262,254 households back through 08/99, with 368,752 households and the establishment of bonus based state offices, Oklahoma has lost 106,498 households or 223,646 PIF. We know that estimate is overly conservative and likely closer to 250,000+ PIF loss.
But, here is even more great news for Oklahoma. It appears that Farmer's company-wide GWP bubble and management bonuses is about to pop, as GWP heads toward the break-even point. That is, GWP created by new business written plus rate hikes and renewals can no longer offset the increasing number of clients leaving the agencies, taking their premiums to competition.
In our Oklahoma Voice June Survey, 27% of responding agents complained of growing cancellation charge backs offsetting new business income. If that survey was repeated today, that percentage would likely inflate with many reporting that renewal commissions are now being affected as new business income has been more than wiped out.
The average policy loss per agent in the first 6 months of 2009 appears to be about 58 policies over NB writings. Oh yeah, that's a state-wide average and could vary in your agency- ever heard that before on rate hikes?
It's fairly easy to tell that management has never written a Farmers policy. If they had, they would know just how difficult it has become in the rating, inspecting, jumping though hoops and dancing in circles to get it issued including added documentation in a 3 day time limit. But, jack up the rate 29% (that % may vary in your area) as they did on the LLPs and it's real easy to lose them as non-pays. Many of our biggest personal lines accounts are landlords where we insure several rental homes and usually their cars and personal home and life. We have worked those accounts hard, along with others, only to begin a heavy policy loss trend on LLP, another step in forcing agents out of the business or signing with competition to recover their x-FIG clients spinning PIF loss out of control.
But, that creates another new meaning of GWP: Growth Without Producers. Guess we will just take flight or flight attitude in the wings and see if management's trials and tribulations end up creating a third definition of corporate GWP: Corporate- Gone Without Policies.
But, their is a management trick to their methods. That is, 10 years ago, we insured 11 million households today, it's closer to 10 million, so they say. The trick is to purchase additional companies with lots of policies to increase the numbers. That was done in 2000 with Foremost and again in 2007 with Bristol and now they inject a few more million PIF with the purchase of 21st Century which is off-limits to us. But, it appears if those policies jump ship, it will affect the Independents, not us. Unless, you may have related direct 21st Century lead business as an exclusive agent.
This leads to yet another definition of GWP: Growth with Purchase. The big question still remains, why do they need agents if they can just buy the business with excessive profits via premiums charged to our ever-declining number of clients. Is this just engineered recycling? Okie Agent
Okie, thanks for writing. We should be able to do the same thing. That is, buy an agent's book of business that is planning to leave Farmers. They can do it, so why can't we as independent contractors? When agents terminate from Farmers, all benefits are gone except overly inflated COBRA costs and some will need to extend benefits until they find another job with benefits or hit medicare. Selling to and working as a part time producer with benefits just makes better sense during the transition of the agency.
*Here's a Shocking PIF & GWP post from ufaa.com Open Bulletin Board-
See the Oklahoma Voice Home Page link below to access this post.
Re: COMPANY LOSS OF PIF Posted by: archangel (IP
Logged) Date: 22 July 2009, 08:32AM
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 Are the FAST CA$H Results to be Trusted? Dear Editor- I, like over 7,700 other agents and DMs received a nice check on the Fast Ca$h promotion. What a great contest. It was the largest pay out ($18 million) I can remember with this company But, to be honest, I am afraid to cash my check. I went back to Dashboard and read the hyped promos, rules and FAQs to understand what qualifies an agent in the contest. I sorta understood it until I read rules 21-25 which made rules 1-20 meaningless. Again, to be honest, I have no earthly idea- "How I qualified for the money?" Many agents have expressed the same issue.
Dreaded Charge Backs
The contest focused on written and renewing GWP. But, there are two GWP definitions 1- Written and 2- Earned. With the growing number of PIF leaving the agency force, I can't help but wonder if policies do not stay the course until their next renewal. Will it cause bonus charge backs if it negatively affects the GWP results on which the bonus was paid? Rather than cash the check, I am just going to frame it and ask for a replacement check in 2010, a year following the Fast Ca$h contest cut-off date. Can I be charged back if I cash the check now? Okie agent.Dear Okie, Great letter. The Oklahoma Voice has received several inquiries on the Fast Ca$h results. All agreed it was a great promotion and they too, did not know how they won. But, some were suspicious. As a general rule, only about 1% actually win Farmers contests. yet, Fast Ca$h had winners exceeding 50% of the entire agency force. Can they charge you back months later? In their definition, yes, under the ambiguously defined rubber rules you cited. (On dashboard search > Fast Cash) But, a charge back would only void the agent's trust in this and future promotions. It's not likely, Farmers would come back later and grab the money from your folio. However...it's happened before.
History has shown that newly introduced programs rarely are correct in their initial version and changes re-occur until they get it right. This contest involving $18 million could fall into that category with errors to be discovered down the road. A program error overpaid agent commissions during 2004. The company regained that overpayment with deductions from folios during several months of 2005.
Perhaps, We need a little more information on this subject. It is suggested Sr.V.P.Deb Settle should advise the agency force to either confirm or cancel our worries on this trust issue before they are faced with a large number of outstanding checks framed on our office walls. -ed.
Well, Deb, We're waiting to hear from you. |
Can you be an independent 21st Century Agent?
Find out here
Also, put in your zip code and find out who already sells 21st Century near you
Farmers Insurance Acquisition of 21st Century
Insurance FinalizedJuly 1 The Auto Channel
 LOS ANGELES - July 1, 2009: The Farmers Insurance Group of
Companies announced today that it has completed the acquisition of 100 percent
of AIG's U.S. Personal Auto Group, which includes 21st Century Insurance. In
addition to 21st Century Insurance, the acquisition includes the former AIG
Direct business and Agency Auto business. The purchase price amounts to
approximately $1.9 billion.
Under the agreement, AIG's U.S. personal auto insurance
business is being sold to Farmers Group, Inc., a Los Angeles-based subsidiary of
Zurich Financial Services Group.
Farmers Group, Inc. will sell the underlying insurance entities to the Farmers
Exchanges, which Farmers Group, Inc. manages but does not own, for approximately
$1.4 billion. This acquisition by the Farmers Exchanges strengthens
Farmers' place as the 3rd largest personal lines insurer in the US. And, the
acquisition positions the Farmers Exchanges as the largest auto insurer in
several states, including California. The acquisition is the largest in the
81-year history of Farmers.
The acquired companies operate in 49 states and Washington,
D.C.; have more that 2.4 million customers; and insure more than 4 million
vehicles in the US. Further, 21st Century Insurance is the nation's 3rd largest
traditional "direct" writer of insurance. Without including 21st Century
customers, Farmers already provides auto, home, business, specialty, life
insurance and financial services to 10.5 million US households.
Farmers Group, Inc. CEO F. Robert Woudstra described the
acquisition as a "positive and historic milestone for Farmers, 21st Century,
Farmers agents, and, most importantly, insurance consumers across the United
States." We welcome 21st Century CEO Tony DeSantis and his highly
professional and accomplished management team and employees into the Farmers
family," Mr. Woudstra said. "This acquisition represents a perfect strategic
business fit and will dramatically transform the insurance landscape by
positioning Farmers as the leading multi-line, multi-channel insurer in the
United States. Most importantly, this acquisition enables us to accommodate the
shopping needs of all insurance
consumers."
In addition to the positive impact on consumers, Mr. Woudstra
explained, that Farmers' vast national network of insurance agents also will
benefit from the acquisition. "This acquisition will enable 21st Century
customers to have access to Farmers agents, who can help them with their other
insurance needs, such as homeowners, business, specialty products, life
insurance and financial service products," Mr. Woudstra said.
"Since our founding in 1928, Farmers has been built by
thousands of loyal, passionate, customer-focused Farmers agents, district
managers and employees," Mr. Woudstra said. "Farmers is strongly committed to
growth, success and expansion, all of
which include a strong, vibrant agency distribution system. The acquisition of
21st Century is an extension of that commitment to our agents, raising their
visibility and access to the rapidly expanding network of Internet
shoppers."
"Research clearly shows that more and more insurance
consumers are shopping, quoting and purchasing insurance products online," Mr.
Woudstra said. "This addition of 21st Century will provide Farmers with a
geographically broader and more diverse market presence across the country,
including the eastern seaboard - a key target market for future Farmers growth."
Mr. Woudstra added.
"When you combine this acquisition with the our other,
successful, recent acquisitions and integrations of the Foremost Insurance Group
in 2000 and the Bristol West Insurance Group in 2007, it's quite obvious we are
committed to growing our business when it makes strategic sense to do so for the
benefit of our customers, our agents and our prospective customers," concluded
Mr. Woudstra.
 Farmers is a trade name and may refer to Farmers Group, Inc.
or the Farmers Exchanges, as the case may be. Farmers Group, Inc., a management
and holding company, along with its subsidiaries, is wholly owned by the Zurich
Financial Services Group. The Farmers Exchanges are three reciprocal insurers
(Farmers Insurance Exchange, Fire Insurance Exchange and Truck Insurance Exchange),
including their subsidiaries and affiliates, owned by their policyholders, and
managed by Farmers Group, Inc. and its subsidiaries. For more information about
Farmers, visit our Web site at www.farmers.com.
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Dear Oklahoma Voice,
Did you read this email?
A MESSAGE FROM ZONE SR. VP DEB SETTLE: Update on 21st
Century Acquisition & Lead Distribution Plan
Monday, June 29, 2009 9:57
AM
From:"agency.communications@farmersinsurance.com"
To: agency.communications@farmersinsurance.com
Ladies and Gentlemen,
I'm very pleased to report
to you that we are continuing to move forward with our plans to finalize the
acquisition of AIG Personal Auto, including 21st Century. In fact, we
anticipate the acquisition may close as soon as next Wednesday, July 1,
pending regulatory approval.
As the acquisition date approaches, our
efforts remain focused on
developing our greatest area of opportunity --
getting 21st Century leads
into the hands of our Farmers agents for
cross-sell purposes.
This acquisition represents a significant
opportunity for all of us.
Internet auto insurance shoppers now represent 55%
of the market, a number
that continues to grow year after year. So,
partnering with a
well-established direct carrier such as 21st Century will
certainly provide
Farmers agents with access to an expanding market of
consumers. It will
also offer those same consumers - many of whom would not
otherwise think to
go to an agent - with the opportunity to see firsthand the
value that a
Farmers agent provides.
As we continue our work to define
a process for disseminating these leads
to Farmers exclusive agents, one fact
has become clear - this is not a
simple process to put in place. As we dig
into the details, we find that
there are several important factors that we
need to consider, such as
"which agents should receive which leads?", "what
do we do with 21st
Century leads that are not in the vicinity of a Farmers
exclusive agent?",
and "how do we identify which leads will provide the
greatest value to our
agents?". An even more challenging issue -- and one
that will take the
most time to work out -- is "how do we efficiently and
systematically route
leads to agents?". The list goes on and on!
All
of these questions will be answered, but it's going to take some time
to get
there. To ensure we're headed in the right direction, we've asked
for the
assistance of several of our Presidents Council [ P/C ] agents and
district
managers. Over the next several months, these individuals will be
meeting
with our Home Office team to help us identify and resolve many of
the
details we'll need to iron out. Their ideas will then be presented to
the
remainder of our Presidents Council during the convention in
September.
Once our Council validates these recommendations, we can begin
piloting
several options. If all goes well, we hope to have a process in
place to
begin sharing leads with our agents by early 2010, which is
consistent with
the plan we introduced to you back in April.
I look
forward to sharing updates with you as we move this process ahead.
In the
meantime, please know how much I appreciate your dedication and
commitment to
excellence. Working together, we will achieve market
leadership.
Deb
Settle, CPCU
Senior Vice President - Field Operations
Midwestern
Zone
(323) 930-4021
Signed, Okie Agent. Dear Okie Agent. In Oklahoma, it is easy to answer the question, "Which agents should receive leads?."
Title 36. Insurance
Section 1435.15
- Producer Acting as Agent
E. It shall be unlawful for any insurer to discriminate
among or between the insurance producers it has appointed. Any person or company
convicted of violating the provisions of this section shall be guilty of a
misdemeanor and shall be punished by the imposition of a fine of not more than
Five Hundred Dollars ($500.00) or imprisonment in the county jail for not less
than six (6) months nor more than one (1) year, or be punished by both said fine
and imprisonment.
It appears the inclusion of P/C members and DMs is for the impression of field input, as the decision sounds like it has already been made who will get the 21st Century leads. Paragraph 4 in the email above provides a real strong hint.
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 Captive Agent: An agent who represents only one insurance company and is restricted by agreement from submitting business to any other company, unless it is first rejected by the agent's company. This is the correct definition for Farmers Insurance Agents.
Exclusive Agent: An agent who represents only one insurance company and who solicits and sells business exclusively for that company. That would be the definition of an American Family, State Farm agent and any new [current] Farmers agent that signs the new AAA. [contract]
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Press Release
Source: Farmers Insurance Group of Companies
Monday July 27, 2009, 3:31 pm
LOS ANGELES, July 27 /PRNewswire/ -- Farmers Insurance Group of Companies(®) announces another historic debut of its latest full complement commercials which focus on customer service and the value of Farmers Insurance agents living and working in communities across America. The latest ad campaigns focus on small business insurance and specialty coverage for products like boats, motor homes and ATVs with real-life customers. |
New Okla. Insurance Verification Program Has a Sizable Hole
An auto insurance-verification program set to take effect in Oklahoma next
summer does not address a growing number of uninsured drivers - those who are
illegal immigrants.
The new real-time system will allow law enforcement officers to immediately
determine whether or not a driver has the required insurance on a vehicle, an
improvement from the current system. The goal of the new system is to reduce the
number of uninsured drivers on Oklahoma roads.
But current Oklahoma law prevents illegal immigrants from buying car
insurance, because the state denies them the ability to legally obtain a
driver's license. "We know we have a lot of illegal residents who cannot get a driver
license,'' said Lonnie Jarman, the director of financial responsibility at the
Oklahoma Department of Public Safety. "Here we have a problem until we get this
thing resolved because they have cars.'' Jarman estimates that as many as one-fourth of drivers in Oklahoma do not
have car insurance, although other estimates are lower. No one can tell you what the number is because it's a constantly moving
target,'' Jarman said.
Information from: Tulsa World, www.tulsaworld.com
Verification Problems abound between Insurance companies and Tag Agents
Several insurance company agencies have experienced calls from Oklahoma tag agents unable to verify auto insurance coverage from proof of insurance forms provided in person by insureds. Farmers is no exception.
Last month you may recall, we wrote about incorrect HelpPoint phone numbers on the reverse side of Farmers proof of insurance forms that led callers to a phone sex hot line. This month, as tag agents have come on line with the state's insurance verification system, many Farmers proof of insurance forms are not verifiable through the system. Since the first of the year, Farmers proof of insurance forms have changed. Forms printed prior had a state code (08) that preceded the policy number. More recent forms have dropped the state code and added an NAIC code number in another area of the form.
There is a strong appearance the data available to the tag agent on line from Farmers information contains the state code, while the information input by the tag agent from more recent forms excludes the state code results in a no hit. Some tag agents send the customer to their agent, while others call the agency requesting a correct proof of insurance form. Tag agents have refused to simply add the state code to the policy number and verify it, stating they cannot input anything not shown on the form.
How inflexible can it get. This is a new system. It does and will have bugs. If you have been a Farmers Agent or CSR for more than an hour, you know the company is not perfect. And, now the state seems to be inflexible to slight modification of a policy number. Agencies could not produce an acceptable replacement proof of insurance on Dashboard as it did not contain the state code either. -ed
UPDATE:
Oklahoma Tag Agents received an email dated 07/16/09 from the Oklahoma Tax Commission advising to ad the state code "08" when entering the Farmers policy number. You should no longer receive tag agent calls on this issue requesting a proof of insurance on your letterhead. -ed
"Pulse of the Agents" Single Question Poll
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UFAA Sponsored E&O
is about Gone for 2009
YOUR AGENCY CAN NOW GET BETTER COVERAGE AND
PRICING
2009 Enrollment deadline is - August 20th for coverage effective September 1st.
Completed apps received or approved after Aug. 20, 2009 become effective
January 01, 2010
Final 2009 binding date is fast approaching
So, get-r-done
There is a reason more Farmers agents are
placing their coverage with the Agent's Association Group E&O plan every
month!
You have completed
your application?
It is easy to bind
coverage
(If you received a quote, you should have received this email from Kevin Dahlke)
1.
At the
very bottom of this email, Click the "Click this link to go to your
application or proposal" sentence below (no log in is required) and it will take
you to your proposal page. (this is a copy with no link to your app. Check emails for link)
2.
There choose
your coverage amount, monthly premium and provide either credit card or banking
information to bind coverage. You may choose monthly or annual
payment terms.
3.
The next
binding date is 9/1/2009 and you should have time to stop your next folio
deduction.
4.
You will
receive confirmation of your request to bind coverage and within 2-3 days you
will receive your policy and the form to send to Farmers to cancel
coverage
5.
If you have not already provided one, a
loss history is required to bind coverage. Calsurance (866 893 1023 farmers@calsurance.com) is currently providing the loss history
within 1-3 days of your request and no one is having a problem getting their
loss history.
- Many
agencies reduced their premium* and all improved their
coverage
- The Farmers group policy contains the
"class one wording" (click this link to read the
wording) that is exposing all Farmers agencies to uncovered loss on
Farmers and non Farmers polices.
- The Farmers policy is contractually
favorable to Farmers and policy benefits are affected by your contract
termination status (click here
to read coverage differences)
- Coverage includes all retail policy placements
you are licensed to write with Farmers, FFS and non Farmers carriers
- Coverage is retroactive to the date of your
Farmers appointment (if continuous coverage has been
maintained)
- Your
deductible is waived AT NO ADDITIONAL COST by compliance
with the Waiver of Deductible Endorsement (details on the sample policy on the
web site)
- FFS has
accepted this policy form from all agents submitting proof
- All employees
and agency producers are covered at no additional cost
- You cancel your Farmers coverage any month
in the year without
penalty
- You are not required to insure with
Farmers
- You may pay monthly by credit card or bank
draft
- Your premium is pro rata for the 2009
year
- 2000 agents have been approved for coverage
in the new Agent's group plan
- Defense cost
coverage is unlimited in addition to your limit of coverage
- Deductible
applies to damages only and is the
same for all carriers
- Limits of up to
5,000,000 available
- Optional
Employment Practices Liability coverage is available
- Association insurer has long experience in
and a large book of insurance agents E&O policies in force
*as compared
to the Farmers Group Inc. E&O plan
Thank you,
Kevin
Dahlke Have Questions? email: kevin@dahlkeinsurance.com
To complete a trial application and receive a quote go to this link.
Get-r-Done- ALL E&O APPS RECEIVED/APPROVED AFTER AUGUST 20TH WILL BECOME EFFECTIVE JAN.01.2010
Renewal terms will be distributed to all currently insured agents beginning
9/1/2009.
The rates are not
expected to change & the renewing agents will NOT be required to pay for the
$100 loss control as this for the first year only. An additional savings over the Farmers E&O Plan.
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,
"The Pulse of the Agents"
July Opinion Poll Results -------------------------------------------------------------------------
The Oklahoma Voice reader polls take no more than a few seconds to complete. You are informed immediately how your vote compares to other responding readers. It is important to vote in the polls as we all can gain the "Pulse of the Agents."
Your poll votes remain anonymous. We only obtain the numbers of answers converted to percentages, not the source of those numbers. Readers can only vote in a poll once. The percentages shown when a reader votes, is the tally at that moment. We'll publish final poll results in a future issue. Look for this image > < designating a poll where you may vote.
Results of the July, 2009 "Pulse of the Agents Polls"
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 DID YOU SEE THIS IN THE FARMER'S ACHIEVER?
View the individual ratings of AIG, 21st Century and Farmers.
J D Power 2009 Insurance New Buyer StudyWESTLAKE VILLAGE, Calif.: 23
June 2009 - Erie Insurance ranks highest among auto insurance
companies in satisfying new buyers with the purchase experience for a second
consecutive year, according to the J.D. Power and Associates 2009 Insurance
Shopping StudySM released today.With a score of 893 on
a 1,000-point scale, Erie Insurance ranks highest and performs well across all
three factors driving satisfaction-distribution channel, price and policy
offerings. American Family ranks second overall with a score of 891, followed by
The Hartford (889) and GEICO (886)."For customers to be especially
satisfied with their insurer during the shopping experience, it's important for
them to think about how they prefer to be served-by a local agent, a centralized
call center, a Web site or some combination of these three channels," said
Jeremy Bowler, senior director of the insurance practice at J.D. Power and
Associates. "Depending on the channel favored by the customer, one insurer may
be a better choice than others based on their strength in that particular
channel."For example, among the four highest-ranked insurance companies
in the study, Erie Insurance and American Family sell primarily through local
market insurance agents. The Hartford has particular strength in its call
center, while GEICO customers indicate they are particularly pleased with the
GEICO Web site.The study finds that fewer insurance customers are
shopping for another provider-28 percent, compared with 36 percent in 2008.
Across the industry, 90 percent of auto insurance customers are retained by
their current provider."The decline in the number of customers shopping
and switching insurance providers may in part be due to the current economic
situation, as many customers are employing a hunker-down mentality," said
Bowler. "Most customers would prefer to hold tight to their current provider,
which they already know, rather than risk trying a new provider, particularly
amid negative coverage surrounding a number of insurance providers
recently."However, the study also finds that price is the reason cited
most often for shopping for a new auto insurance provider. Among those customers
who mention price as a shopping trigger, 66 percent say they just wanted to see
if they were getting the best price, while 25 percent cite an actual price
increase and 5 percent say they shopped because they received an unsolicited
offer from another insurer. More than one-third of customers who shop because of
price ultimately switch insurers."Shoppers don't always go with the
insurer providing the lowest quote-10 percent of shoppers say they did not
purchase from the brand that offered the lowest price among the quotes they
received," said Bowler. "While price may catch the attention of potential
insurance customers, low prices alone won't retain customers in the long run
without a high level of service."===
So, just what did the other 90% do if 10% did not buy the lowest price? -ed
A ranking of 853 or better placed companies in the average and above categories. The industry average dropped 2 points from 867 to 865 between 2008 and 2009. This year, Farmers ranked #18 of 22 companies or 843 pts. based on 1,000 pt scale. That's down 6 rating points (3 times the industry average) from 849 in 2008 ranking 14 of 18 companies or below average, again.
The only hit found on J D Power on Dashboard/Achiever was a 2007 award presented to HelpPoint for outstanding customer service.
So, who is to blame for this most recent Farmer's decline? -ed |
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Agency Development Tools
Agency Pulse
APMS
Agency Builder
CSR Focused Page
From the Dashboard Managing page, you have some Agency Development tools. In reviewing the Agency Pulse, this editor has a question. Each month since January, the Oklahoma Voice has placed survey questions at the end of articles of particular interest to agents. We named the survey links "Pulse of the Agents" and placed a special article in the February Oklahoma Voice advising you of the previous month's results and further advised "The Pulse of the Agents" would be special single question developed in future issues. Did Farmers pick up on our Pulse of the Agents and change it around, or is it just a kowinkydink, in Oklahoma known as a coincidence?
Now, Farmers comes up with "Agency Pulse" defined as- "Agency Pulse" is an opportunity for individual agents to hear the pulse of their agency. Hear what your customers say about the service you provide and find out what is important to them. The survey is fully administered by Home Office Customer Insight Group and a special introductory price of $150. We offer several folio deduction options, keeping the cost as low as $15 per month."
UFAA Chapter 15 has offered a similar priced service with more options to the Oklahoma Agency Force since November, 2008 on the Oklahoma Voice home page. But, rather than a controlled program administered by others, you have the freedom to survey your clients with your agency specific survey questions and you get private results. Plus, with this email newsletter and survey system, you can additionally send a monthly email newsletter, similar to the Oklahoma Voice to your clients. Your newsletter can update coverage, advise that jewelry floaters need updating, advise your FFR service, new discounts, new products, your hours of operation, and even advise clients to do business with you via email. That way you have it in writing- a great E&O prevention source. You can even throw in a single "client pulse" question at the end of an article- to gain your client's opinion. Just like we do in this issue.
You can do all of that right here, made available through you local UFAA Chapter using Constant Contact. Just mouse the logo below to review the short intro videos. Your first 60 days are free compliments of UFAA 15 and competitively priced- giving you total control with agency newsletters and client surveys.
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Dear UFAA, I am ready to leave Farmers as an agent until I ran across this Farmers Agent Recruiting site. I wanted to share this with you as the Farmer's video appears to have it all and truly shares with and cares for their agents. Here's what they are telling newly recruited agents and prospects. Am I to believe all of this advertising and remain an agent? Okie Agent
- Be in charge of your future
- Free enterprise- It's your business
- Independence- Making your own decisions
- Making a commitment- Receive backing, support, training
- Income- Determined by your energy and skill
- Security- Your products are always needed
- Stability- No need to transfer or relocate
- Equity- Develop contract value and receive bonuses
- Satisfaction- From helping people
- Would you like to know more?
We offer an
incomparable opportunity for growth, career fulfillment and success within a
powerful and flourishing organization.
Check it out
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June 26, 2009- Cash for Clunkers
DOT ready to implement new
car buyer incentive
program
Stimulus Plan side benefit will help Insurance Industry
Earlier this week, President Obama signed into law the Car Allowance Rebate
System (CARS). This program helps consumers pay for new, more fuel-efficient
vehicles when they trade in less fuel-efficient cars or trucks. Stimulating the automobile industry while improving the environment and
reducing fuel consumption--these are outcomes the DOT is pleased to support.
Congress and the Obama Administration recognize this is an important time for
the automobile industry. And, the CARS program will help boost car and truck
sales. Moreover, since the auto industry has improved vehicle safety and reduced
vehicle emissions over the years, we are also excited about a program that puts
vehicles on the road that are safer, pollute less, and get more miles to the
gallon than the vehicles they replace.
What is the amount of the credit?
The amount of the credit is $3,500 or $4,500, and generally depends on the
type of vehicle you purchase and the difference in fuel economy between the
purchased vehicle and the trade-in vehicle. Different requirements apply for
work trucks.
Important Things to Know
Your vehicle must be less than 25 years old on the trade-in date. Only purchase or lease of new vehicles qualify Max MSRP is $45k.Generally, trade-in vehicles must get 18 or less MPG (some very large
pick-up trucks and cargo vans have different requirements.) Trade-in vehicles must be registered and insured continuously for the full
year preceding the trade-in. You don't need a voucher, dealers will apply a credit at purchase
Program runs through Nov 1, 2009 or when the funds are exhausted, whichever
comes first.
The vehicle that you are trading in is required to be destroyed. Therefore,
the value you negotiate with the dealer for your trade in is not likely to
exceed its scrap value. The law requires the dealer to disclose to you and
estimate of the scrap value of your trade-in vehicle.
Check this site frequently for the most recent updates from the
government.
UPDATE: Aug 1st
The DOT suspended the Cash for Clunkers program July 31st, after just 7 days, as dealers reported to the DOT a wait backlog of potential sales that may exceed the $1 billion allotted for the program. It remains to be seen if Congress will extend more dollars to the program that has become an immediate victim of its' own success and government red tape.
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Short fuse Cancellation Requests-
Dear Editor, I had a
customer call to cancel all his policies effective 6/30/2009. Like a good
little FIG soldier I told him I needed the request in writing. On 7/02/2009 he
brought the written request to my office. We canceled the car policies eff
6/30/09 and got a concurrent transaction notice, so the cancellation of the home policy did not process timely. On
7/06/2009 I scanned his written request into the image center and attached it to
a service request to cancel the home policy eff 6/30/2009 as requested.
ServicePoint called me to let me know they required documentation of other insurance or
bill of sale on the home to back date the cancellation. I explained I had tried to cancel in
timely manner within 3 days and told ServicePoint to state why they would not
cancel then when the ex-ins complained I would refer him to them or the DOI
commissioner. Okie Agent Dear Okie, it would appear with Farmers, both you and clients must walk a tighter underwriting line to obtain, and now, cancel coverage. The short fuse on cancellations has been problematic in acquiring the proper documentation within the allotted hours including over weekends. There is also an uproar building among agents about a similar time limit to submit changes and new business. Is this a restriction of agent authority to properly service our clients?
If the limited processing period has passed, could place the policy past its renewal date causing a short-rate cancellation that retains premiums, if not paid , sending clients to collections.
And, there are more serious problems at the state level-
Per Kathie Stepp, Deputy Oklahoma Insurance Commissioner and Director of the DOI P&C Division, Oklahoma insurance laws have been severely weakened over past years. This is especially true concerning insurance consumer protections laws that have been eliminated during the previous and current Insurance Commissioner's term.There are no longer any requirements on the law books that use to limit an insurance company to a max 15% file and use on rates. Likewise, laws concerning excessive rates are now gone. However, the powers of the Oklahoma Insurance Commissioner have remained in place and the commissioner can and must resurrect these protections through the lawful process of administrative rules.
As insurance companies are taking, in some cases, severe advantage of laws no longer in force, someone has to step up to the plate and protect the insuring public. Do you believe it will be Farmer's Oklahoma Lobbyist, supported in-part, by your FEA-PAC donations? If Commissioner, Kim Holland, fails to place controls on the insurance companies to protect the public, we should find someone who will. Her re-election bid, will be November, 2010. Do we have any candidates out there? -ed |
 
If you wish to be excluded from future mailings please let us
know by emailing us at ufaa15@.gmail.com or by using the Unsubscribe feature at
the located within this document. Disclaimer - The Oklahoma Voice is published
twelve times per year for the United Farmers Agents Association, Chapter 15
Northeastern Oklahoma. The United Farmers Agents Association and the editor
neither assumes any responsibility for the accuracy of the articles or
advertisers, nor any liability arising from reliance upon them. The Oklahoma
Voice expresses it's appreciation to the many members who assist in and support
it's publication,. Opinions in the Oklahoma Voice do not necessarily express the
views of any single member or Chapter officer or UFAA organization. Products and
services advertised are not endorsed by this Chapter or United Farmers Agents
Association, Inc. Complaints or inquiries should be forwarded directly to the
advertiser. All purchases and services are at the complete discretion of the
consumer. Trademarks are the respective products or logos of their respective
owners. |
Announcing:
NEW Continuing Education Requirements- UPDATED
Effective
November 1, 2009 For Oklahoma
Biennial
CE Requirements:
 The Oklahoma Insurance Department continues to be diligent in its efforts to comply with the National Association of Insurance Commissioner's (NAIC) Uniform Resident Licensing Standards. The standard for Continuing Education (CE), as set forth by the NAIC, requires that each Insurance Producer and Adjuster complete twenty-four (24) hours of CE during each biennial renewal period.
Therefore, as of November 1, 2009, the following CE requirements will go into effect:- Resident producers with the exception of Title and Aircraft Title producers will be required to complete twenty (24) hours of CE, including three (3) hours of ethics, during each biennial renewal period.
(Please note: any producer who intends to sell Medicare Advantage products and plans including PFFS and Part-D and/or Long Term Care products and plans have additional CE requirements which must be met during each biennial renewal period. Please visit the Oklahoma Insurance Department website at www.oid.ok.gov for additional information)
- Customer Service Representatives will now be required to complete thirteen (13) hours of CE, including three (3) hours ofethics, during each biennial renewal period.
- All Resident Adjusters will now be required to complete twenty-four (24) hours of CE, including three (3) hours of ethics, during each biennial renewal period.
Exemptions:
- Limited insurance representatives
- Agents and limited reps age 65 or older, continuously licensed for 30 years and writing no new business. Agent submits sworn affidavit with license renewal stating they receive only renewal commissions.
The CE exemption for producers sixty-five (65) years and older who have at least thirty (30) years experience ABOVE has been revoked.- Active members in a professional insurance organization may be granted up to 1-hour of CE credit annually.
- Monitored final exam: Exams must be monitored by a disinterested third party.
- Compliance date: License renewal. Renewal date is the last day of the license issuance month, biennially.
Course subject requirement:- Approved courses must be completed for lines of insurance for which license is held.
- Licensees (except adjusters) must complete two hours of ethics as part of the basic requirement, but not more than 4 hours of ethics.
- At least two hours of the overall requirement must be taken in elective credits covering one or more of the following topics: state legislative updates, federal legislative updates, health coverage, or welfare coverage.
- Carryover of excess hours: Effective 7/14/08, six credit hours in excess of the 24 required hours may be carried over to the next reporting period.
- CE Electives: Effective 7/14/08, at least two of the CE credit hours of instruction taken each 24-month period must be electives in one or more of these subject areas:· State legislative updates Federal legislative updates.
KIM HOLLAND
OKLAHOMA INSURANCE COMMISSIONER
P.O. BOX 53408, OKLAHOMA CITY, OK 73152
(405) 521-2828
If your license renews In Nov. or Dec. 2009 after the new increased CE hours of November 1st. Take note.
Special Notice:
Ability to Renew Licenses Early
Attention all Producers (Agents and Adjusters):
The Producer Licensing Division of the Oklahoma Insurance Department implemented new technologies and improved procedures through our Sircon online processing system. One of these improved processes is the ability for producers to renew their licenses up to 90 days early. The license expiration dates will not be affected.
Special Note: Continuing education requirements increase for Oklahoma licensees effective November 1, 2009. Producers with expiration dates in November 2009 and December 2009 will have the ability to renew their licenses prior to November 1, 2009. License renewals processed prior to November 1, 2009, will be allowed to complete the renewal under the current continuing education requirements.
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THE SPECIFIC SECURITY
OBJECTIVES OF UFAA ARE:
1. A two-way negotiated contract.
2. For rendered services contractual compensation schedules encompassing full commission of all premiums.
3. Agent ownership of policies and expirations.
4. Termination for just stated-cause only.
5. Ending discrimination of agent or agent authority.
6. To foster cooperation for mutual benefit, between other agent associations. |
 - "Best Agent Contract in the Industry."
- The Next Gen Home Policy will make us more competitive.
- Our Discounts can save up to 40%.
- Auto rate increases are capped at $50.
- Big (disappearing) discounts for teachers, cops and firemen.....
- The state office is here to help you.
- The Flex-auto will lock the rate. (Will renewals stick? - is the question)
- Farmers- A company easy to work with
- Free Pet coverage with comp and collision coverage. (That should line 'em up at your door!)
- ServicePoint is here to assist you. But, exceptions to retain clients is a no go. It's management's no exception rule, not SP!
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 Farmers Corporate BBB rating was recently raised from C+ to A+ But, there are still problems.
Farmers HelpPoint Sites BBB Rated "F"Farmer's
Insurance Claim Offices
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Bethel Collision Center
(918) 258-3318
BBB Rated A+
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Ads are now hot links to websites
Support Our
Advertisers
Please support and recommend our supporters.
Learn more about our advertisers as you or your clients may need their services in the future. Educate yourself so you can give your clients more detail about the services they offer.
You may click on any of our valued ads in this issue for direct access to their informative and educational website.
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By EMERGENCY PATCHES FIX CRITICAL WINDOWS FLAWS
This week,
Microsoft issued an emergency out-of-cycle update. In all, it patched six
vulnerabilities. Three of the vulnerabilities affect Internet Explorer. They are
rated critical, Microsoft's highest level of severity.
The remaining patches fix holes in Visual Studio. The bugs are in a code
library used by Microsoft and third-party developers. The code is used to create
ActiveX controls. If you haven't installed the updates yet, run Windows Update
now! These flaws are serious! source:Komando Newsletter 8/1/09
FINDING A REPLACEMENT FOR MICROSOFT MONEY
Linda wrote
from Nashville, TN, where she catches the show on WWTN 99.7 FM. She's used
Microsoft Money for years. But she read in my News of the Day newsletter that
Money is being discontinued. She needs a free program that can import her Money
data.
It's always a hassle when a company discontinues a program. But you usually
don't have to switch to a new program. You can often continue to use the old
program.
Microsoft Money is different. It connects to online services. For example, it
connects to most banks. Connections expire one to two years after Money is
activated.
So, Money users should upgrade sooner, rather than later. In most cases, you
could export your data to Quicken. There are limitations, though. You can learn
more about that on Microsoft's site.
However, you don't need to pay for Quicken. You'll find free programs on my
site that will do the trick. AceMoney Lite and GnuCash will both work. Just export your Money data to a
Quicken file. Then, open the file with the free program.
SECURING YOUR WI-FI
NETWORK FROM PROWLERS
Virginia wrote
from Kingman, AZ, where she tunes in on KAAA 1230 AM. She wants to secure her
wireless network. She knows I've covered that on my site. She heard me mention
it on my show. But she can't find the tip.
It's important to lock down your wireless network. You don't want neighbors
using it for illegal purposes. Nor do you want them perusing your files.
Protecting your network takes about 10 minutes. My must-read tip will walk you through the process. Just pay
attention to the various security standards. WEP (Wired Equivalent Privacy) is
too easily cracked. You might as well have no security at all.
I'm sorry you couldn't find that tip. So, let's talk about searching my site
for a moment. I often mention things on my show. Those links are on the Show
Picks page. Bookmark that page.
For some reason, many listeners miss the Show Picks page. On my home page,
just click the Show Picks link. You can't miss it; the link is next to my
dazzling picture.
Of course, not everything will be on the Show Picks page. So, you have search
options. You can use the search box at the top of every page. This will search
my entire site and return relevant results. A second search box only appears on
certain sections of my site. Use it to search that section, such as Tips or Cool
Sites.
Securing your Wi-Fi network is important. But I have plenty more on security:
Oklahoma
Voice has reprint rights. Copyright 2008 WestStar TalkRadio Network. Reprinted
with permission. No further republication or redistribution is permitted without
the written consent of WestStar TalkRadio Network. Visit Kim Komando and sign up
for her free e-mail newsletters www.komando.com
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Windows 7 OS rumored to be released before the end of year
Windows
7 Release Candidate Customer Preview Program. You can get a sneak preview at this link but you need to read all the facts and warnings first.
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Do you have a client or business that needs to direct market to insurance agents?
Cheaper & Faster than U.S. Snail mail
We have the answer at UFAA Chapter 15. For as little as $300 a year, your client can advertise in the Oklahoma Voice that is sent to over 500 Oklahoma Farmers Agents and 150 out of state agents monthly for an entire year.
Figure that cost with them doing it with printing, folding, sealing, and postage monthly. Just the postage is over $2,600 a year. Paul Davis figured that out real quick and we welcome them to our dedicated advertisers making this publication to you possible. And, Paul Davis chose the Oklahoma Voice to bring you their business ad. Just like many of our advertisers that have discovered the Oklahoma Voice is a great savings to a targeted market.
Independent agents that can give our members an outside placement contact are welcome. For ad info contact our Ad Dept.
PLEASE, support our advertisers! -ed
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Investments Down?
 $1,000
Finders fee for each new franchisee we sign that you have referred to us in the States of:
OK, AR, KS, MO, TX Contact us at webersrootbeer.net
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UFAA's SECA TAX KIT USED - IRS REFUNDS $15,615.63 President / UFAA Tom Schrader
Re: UFAA "SECA TAX KIT"
Dear Tom:
I wanted to take the time and effort to say thanks for all you and your staff are doing in making UFAA a more professional organization. Ultimately every Farmers agent benefits from your actions. I do have some GREAT news to share with you and your staff concerning the successful use of SECA TAX KIT that UFAA provided to me when I left Farmers after being an agent for approximately 22 years. I would like to submit the information below that you may use in an article in the UFAA quarterly magazine if you desire. You may also use the attached letter from the IRS and the supporting check as proof.
Well all of the rumors you hear about Farmers sending you a 1099 at the end of the tax year for your...contract value are true! In other words, Farmers reports your contract value payments as normal income and therefore the IRS looks at this income as taxable. The UFAA tax kit saved the day for me. I initially did my 2005 taxes WITHOUT using the information obtained from the SECA TAX KIT because my accountant was not familiar with the correct IRS filing procedure. Then after talking with people from UFAA, and using the information obtained from the SECA TAX KIT I filed an amended tax return and actually received a HUGE refund. Thanks UFAA- you saved me $15,615.63 in taxes.
Sincerely, John "Pat" Elzey
Effective, October 31, 2008, the waiting period for the SECA TAX KIT changed from 12 months of consecutive membership to 36 months of consecutive membership. The importance of the SECA Tax Kit should not be under estimated. It is a comprehensive step by step instruction guide that shows tax preparer's how to save agents thousands and thousands of dollars upon their retirement or termination. If seeing is believing, go to the ufaa.com website and look at page 11 of the last issue of the "Voice" (Summer 2008). Read the testimonial letter, dated 04/2008, [above] and look at the actual copy of the check from the IRS for $15,615.63. This is not an isolated incident and it is a direct benefit of being a regular UFAA member. |
Up with Buildings in OKC
With five buildings now completed and occupied in Olathe, Ks, to support administrative, ServicePoint and HelpPoint personnel, Farmers says they will build more.
Farmers Insurance Group will move its 1,300 employees into a new
building in about a year, vacating 150,000 square feet the company leases at
Shepherd Mall. "We've kind of outgrown the current space, and it's an older facility," said
Mitch Crawford, assistant vice president of Farmers HelpPoint.
The company plans to build a 162,500 square-foot building and an adjacent 13,500
square-foot data center at Memorial Road and Rockwell Avenue in Oklahoma City.
The new building reflects the company's commitment to Oklahoma City, Crawford said.
Attempts to reach management officials at Shepherd Mall were unsuccessful.
Mark Beffort, a partner with real estate firm Grubb & Ellis-Levy Beffort,
said the mall's operators will be challenged to fill the vacant space.
Construction on the new building will begin soon, and the company expects to
move in during the third quarter of 2010, Crawford said.
The new building will include indoor and outdoor walking trails for
employees, ergonomic work stations, a patio dining room, on-site credit union
and tornado shelter. The building also is designed to earn certification as an
environmentally sound structure, Crawford said. The data center will have no
windows, and its roof will be painted with a reflective material to reduce
energy consumption. It will also be built to withstand an F5 tornado.
"It's just a piece of dirt right now, but it's a great place to grow," he
said.
Earlier, Farmers announced plans for a $84.4 million in new construction to house 1,600 jobs at the Foremost complex in Caledonia, Michigan. Read the full story on our home page link below.
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Check out the UFAA Chapter 15 Home Page with more Farmers, industry news and lots of member benefit information.
New on the Chapter 15 HOME PAGE Breaking News to late to publish above
 1.25 Million Farmers PIF Loss projected in 2009
Read the Press conference on July 14th discussing
21st Century acquisition 21st Century announces $34 million rate reduction Hot scoop! Why the Credit Bureaus cannot get it right
OID Info you need to know -Do not call the Okla. Ins. Dept. They now provide info on line: Anti-fraud Complaint Form- for you & your clients
Consumer Request for Assistance Form- for your clients
These articles and more on the home page link above.
Have you joined UFAA yet?
We just can't make it much easier.
Just mouse the logo above to obtain
the membership application. Fill it out,
attached a check and mail or use the
bank card option and fax it to
1-314-631-7963. United we stand. Divided we fail.
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