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

United Farmers Agents Assn. National Office 800-275-2662
UFAA Oklahoma Voice Editor
UFAA Oklahoma Voice Ads
To join an Oklahoma UFAA Chapter
choose one closest to you and
contact the chapter. Or, sign
up at the UFAA Website.
United Farmers Agents Association Web Site
UFAA Chapter 15 Newsletter Archive & Homepage

Letters to the Editor

Dear Oklahoma Voice,                                  

I recently received bulletin #10-0174 that went to 11 states regarding consumer notification of credit information.  Farmers is apparently responsible to notify BOTH the primary insured and the spouse that their credit may be used.  Naturally they passed this on as being the agents' responsibility.  If I can not obtain the approval of both people to use their credit information, does it then become ineligible for Farmers and therefore eligible for my outside business?  I do not want to violate my contract by placing business outside, however I also do not want to violate it by misrepresenting facts by clicking the "I agree" button when I have actually been unable to obtain the second insured's ok.  Please advise if you have any incite... as my outside carriers seem to be unaware of this requirement and will be quite happy with only the primary insured's ok.   Okie Agent.

If an insurer writing personal insurance uses credit information in underwriting or rating a consumer, the insurer or its agent shall disclose, either on the insurance application or at the time the insurance application is taken, that it may obtain credit information in connection with such application.  Such disclosure shall be either written or provided to an applicant in the same medium as the application for insurance.  The insurer need not provide the disclosure statement required under this section to any insured on a renewal policy, if such consumer has previously been provided a disclosure statement.

Okla. Stat. tit. 36, § 955(A).  (Emphasis added.)  "Consumer" means an insured whose credit information is used or whose insurance score is calculated in the underwriting or rating of a personal insurance policy or an applicant for such a policy . . ."  Okla. Stat. tit. 36, § 952(4).  (Emphasis added.)  "Applicant" means an individual who has applied to be covered by a personal insurance policy with an insurer . . ."  Okla. Stat. tit. 36, § 952(3).   A "named insured" is a "person, business, or organization specified as the insured(s) in a property or liability insurance policy.  In some instances, the policy provides broader coverage to persons other than those named in the policy if they have the insured's permission to use the property that is insured."  Barron's Dictionary of Insurance terms, 4^th ed.  "Other insureds" are "individuals or organizations covered by property and liability insurance other than the named insured."  Barron's Dictionary of Insurance terms, 4^th ed.

            Section 955 uses both the terms "consumer" and "applicant."  Because the definition of "consumer" includes an "applicant" for a personal insurance policy, an "applicant" is also one whose credit information or insurance score is used in underwriting or rating the policy.  If the spouse is an applicant on the application, as opposed to being listed as a potential "other insured," then the use of that spouse's credit information or insurance score must be disclosed to that spouse "either on the insurance application or at the time the insurance application is taken . . ."  Okla. Stat. tit. 36, § 955(A).  If the spouse is listed on the application as a primary "named insured," but his or her credit information will not be used in underwriting or rating, then § 955 does not require disclosure. 

Simple, huh? In the past, agents ran the score on a particular name. Now , the systems runs the score. The question arises, the score on who? The primary insured, spouse or others in a H/.H? Just flip a coin and decide if you MUST or OPTIONALLY comply based on your interpretation of the statutes and what Farmers runs in the background of underwriting. Sorry, the DOI could not have been more help. But, really, what did we expect when we made the inquiry? This is not our first rodeo with this DOI administration. In previous years, the Commissioner would make an administrative rule of clarification. But, that has not happened in P&C in the last 5 years. Could it be that our current Insurance Commissioner only has knowledge and interest in one class of insurance? That being medical insurance? That needs to change in the November elections.  -ed

Independent Companies beginning to tighten their belts

    Travelers Dwelling Fire Changes in Oklahoma  

Effective immediately Travelers is no longer accepting new business dwelling fire policies.    Current Travelers Dwelling Fire Policies will remain in force and will NOT  be nonrenewed at this time.

Travelers will continue to write new business homeowners subject to writing the supporting auto policies.  Some homeowners restrictions will apply based on your agency's home vs. auto ratio.

   Safeco Dwelling Fire Policy Guidelines in Oklahoma Several years ago, the Oklahoma Department of Insurance implemented a mandatory change to the base dwelling fire policy form to promote affordable coverage for Oklahoma consumers. The state mandated that the base form limit coverage for roofs to Actual Cash Value (ACV).  Safeco responded to this change by offering Replacement Cost (RC) on roofing through the addition of Option A to the base form.

Main Points to Consider:

·             Roofing claims in the OK Dwelling Fire Program are settled on an ACV basis for policy forms 2 & 3 unless Option A (Extended Dwelling Coverage & Replacement Cost Roofing) is selected.

·             Option A is not available on any residence constructed in 1939 or prior.

·             Option A is also not available on policy Form 1 or on Condo Form 8.

     Hanover Homeowner Changes In Oklahoma  

 Hanover has been working diligently to ensure that their pricing is supporting their desire to grow profitably in the Oklahoma market.  

Effective 9/1/2010 for Renewals and 10/1/2010 for New Business, Hanover is making the following revisions to the pricing of their Homeowners product:

·             For those customers writing both their Home and Auto policies with Hanover, Hanover has increased the Account Credit to 35% making it even more effective for you to write the total Account with Hanover 

·             Hanover has increased the Wood Roof Surcharge from 12% to 35%.  Please note that homes with Wood Roofs are ineligible as new business.  This surcharge applies to any in-force customers.

·             Hanover has revised their pricing significantly by territory - with territory only changes varying from +20% to -5%

·             Base rate increases for all form types   

·              

New Business Eligibility Changes Effective 9/1/10 

·             Minimum Deductible on New Business is $1000 All Peril and 1% Wind/Hail Deductible for all Dwelling and Condominium Policies; Tenant policies require a minimum $1000 All Peril Deductible. 

·             Coverage A Minimums have been increased to $150,000 in Tulsa County

 Hanover is not writing new business homeowners in the following counties:  Canadian, Cleveland, Oklahoma, Logan, McClain, Grady, and Lincoln.  Monoline Auto is still available.

IMPORTANT HANOVER ROOF CHANGES EFFECTIVE 9/1/10  

To be eligible for Replacement Coverage on Roof materials, the age of the roof must be less than 10 years old and in good condition.  Submission of a front and back photo of the risk is required and the risk may be subject to inspection before approved.  AT THE TIME OF BINDING:  Please submit front/back photos along with other required documents by email to your underwriter.  Refer to the quote submission for underwriter's name and email address.  Failure to provide front and back photos of the risk will result in Actual Cash Value Roof Coverage.   

Roofs older than 10 years but less than 15 years of age may be written on an Actual Cash Value basis.  Roofs older than 14 years are ineligible for coverage.

     Safeco Auto Product Enhancements in Oklahoma 

Effective Aug. 26 for New Business and Oct. 15 for Renewals, Safeco will be making the following changes: 

·             Increase to base rates to keep pace with loss costs 

·             Redefinition of territories and territory factor changes, allowing Safeco to more accurately align expected losses and pricing at the coverage level 

·             Account Discount will no longer vary by coverage.  The discount will be 12% across all coverages, making it easier to sell. 

Focus on Retention! 

·             With the change to the account credit, selling customers on the benefits of packaging their Safeco Home and Auto together is easier, as the discount no longer depends on the coverages purchased.