OKLAHOMA
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  VOICE
March 2015

 
Next Chapter 15 Meeting will be Thur. March 5th
11:30 AM. SHANGHAI AVENUE SUPER BUFFET 803 N. Aspen. Next to Arvest Bank @ S/E corner of S. 145 East Ave. (Aspen) & 71st St. (Kenosha)  Broken Arrow. OK.

Chinese - Japanese - American Foods
   
Accepts all major credit cards.

Non Members Welcome



 
                      The First Amendment to the U.S. Constitution
First Ammendment

Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances. 
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NOTICE TO: Mid-West Terrirory & District Offices:
The first Thursday of each month has been dedicated by Oklahoma UFAA Chapters 12 & 15 as OUR day to peacefully assemble and meet. Not even Congress can prohibit such peaceful actions.
We would request that State and District meetings NOT be held on the first Thursday of any month between the hours of 10:30AM and 2:30PM to avoid violation of this law.  Please mark your calendars accordingly. Thanks in advance. -Chapters 12 &15.

 

ufaa.hires.logo.15okla.jpg

Chapter 15 Eastern Oklahoma
Pres: Mike Gately 918-481-3277[email protected]
V. Pres: Glenn Johnson [email protected]
Sec: John Wiley    [email protected]
Treas: Terry Wilson [email protected]

Join us March 5th at 11:30AM at the Shanghai Avenue Super Buffet 803 North Aspen S/E Corner of S. 145th East Ave & E. 71st St. next to Arvest Bank
Meeting Agenda From the President: 
Smart Home with commission cuts
UFAA National News
Most DMs went to San Diego a few weeks ago to attend the Annual DM Conference. Here are a few of the stories coming from those meetings.
1. DMs were told to raise their district AGM average scores in 2015. (Agent scores determine DM score)
2. High percentage of District Agent Smart Office Compliance by June, 2015, for DM to get a bonus. Includes outdoor signage that is grandfathered until end of 2016.
3. Profitable Growth Bonus coming in 2016
4. A crackdown will begin on agents with outside employment.
Members are encouraged to bring checks or cash to donate to the UFAA AGM Lawsuit as
one $10 Charleston's gift certificate will be given for each $20 donation.      

NON-MEMBERS ARE WELCOME
 
 If you plan to join us for lunch, Please Arrive for Lunch Promptly @11:30
UFAA Meeting begins at Noon. 
==========
"I did not realize what UFAA was or what they could do, until I started attending chapter meetings & annual conventions sharing information with agents across the U.S." UFAA Member
Paul Davis voice ad wide
 






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Fire, Water, Storm Damage & Other Perils 
Full Service Mitigation and Reconstruction
        Click on our logo above to access our informative website
Board up Service             03/15
10344-B East 58th St Tulsa, OK 74146
Click here to obtain an Oklahoma UFAA Membership App
 
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Click logo above to view the UFAA Website  



 


If you wish to
be excluded from future mailings please let us know by emailing us at [email protected] 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 its appreciation to the many members who assist in and support its 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 and/or logos are the respective products or trademarks of their respective owners.


FGI seems to be in Business of Selling
Agencies instead of Policies.


Ladies & Gentlemen,
I wanted to offer a personal opinion which is based on my recent personal observations, which in my mind started with the Smart Office compliance inspections.  As you know, I receive a lot of calls and emails from UFAA members and non members and lately there seems to be a common theme and that is FGI appears to be picking and choosing who is staying and who is going. It doesn't matter whether the agent is Topper's, Presidents Council, Platform agent and doing everything they are supposed to be doing according to FGI.  We are seeing an unusual trend of FGI terminating agents for no reason and taking policies and selling them to other agents. Many times splitting up bigger agencies and selling them to several agents.    

There are circumstances were FGI gets a brokerage fee of approximately 50% or in that range to agents buying those policies. Example: Outside agent buys a 2,000 PIF agency, that is approximately $200,000 of commissions depending on geographical area. The outside agent buys the policies for 1.5 times the contract value which is 1.5 times $200,000 equals $300,000.  Then my understanding is FGI charges $300,000 times 50% brokerage fee which is $150,000 for FGI. Here is the key, if FGI takes the policies and pays the terminated agent 100% of the contract value, as they have historically done, there is nothing to stop them from selling the policies to a willing outside agent at a higher price, plus a fee.  Many people are telling me FGI seems to be in the business of selling agencies instead of insurance policies.  Whether this is true only time will tell, but it appears there is a trend of picking and choosing and honestly we all suspected this day might come or will come in the future.
  
Right now this is just my personal opinion and personal observation based on conversations with agents that call.  Many of them are quite baffled that they have done nothing wrong. FGI won't tell them what they have done and they are simply handed termination papers. I am surprise at the larger agencies that are being targeted instead of the smaller agencies. This information is simply meant as a personal observation to make sense out of information that is being received.

A Concerned Agent
So, What is the UFAA Lawsuit All About Against FGI?
 Just over 3 years and 2 months ago, in Mid-December 2012, UFAA Filed a lawsuit against FGI and the Exchanges. Read the basics of the lawsuit when filed from the Insurance Journal  While on that link you may want to click the Comments Tab to get both new and seasoned agent's reactions.
Over time, Farmers has depositioned UFAA's Most Knowledgeable Persons (MKP) and UFAA has done the same with FGI. It now appears Farmers will ask the Judge for a Summary Judgement to dismiss FGI from the case. Should that fail, UFAA will proceed with depositions of District Managers. UFAA is spending 10's of thousands of dollars on this legal issue. We need your SUPPORT  Here
Money pile
Management rakes in the dollars that you lose
SMART PLAN HOME POLICY to be INTRODUCED WITH
COMMISSION CUT IN OKLA. IN OCTOBER
New Bus. Commissions Cut 30% from 20% to 14% 
     Renewal Commissions Cut 28.5% from 14% to 10%     
Farmers has announced a new Smart Home Policy to become effective in Oklahoma in Oct. 2015. It will come with reduced commissions and three coverage levels, Standard, Enhanced and Premier. Next Gen Homeowners will continue to be written at the current commission rate until October when only the Smart Home policy will be allowed to be written on new business. The old commission rates on will remain on future renewals of Next Gen, Special and Protector + policies should they remain on the books.
Here's the real serious dilemma in this whole process. That is, the Farmers Group, Inc. management fee will be MORE THAN your commissions per Smart Home Policy-
 
                                                                                           Agent Comm  Farmers Exch.Mgmt. Fee

Current Commission Schedule:
September, 2015 Next Gen Policy NB written @ $2,000  @ 20% =$400                   *13.9%  $278
September, 2016 Next Gen Policy renewal     @ $2,000  @ 14% =$280                   *13.9%  $278
TOTAL                                                                                      $680                               $556
New Commission Schedule:
October, 2015 Smart Home Policy NB written @ $2,000 @ 14% = $280                   *13.9%  $278
October, 2016 Smart Home Policy 1st renewal @ $2,000 @ 10% =$200                  *13.9%   $278
TOTAL                                                                                        $480                             $556
So, why should Farmers Management make more money per policy than you?
     *13.9% Mgmt fee was last published in 2013 per farmers.com/management

PULSE of the Agent POLL4balls flashing (attention0
 
                             =============================================
Did you know that Percentages do not react the same when Falling vs. Rising?

Okay, commissions are falling on the newly introduced Smart Plan Home Policy by 30% on NB and 28.5% on renewals. As agents complained with hundreds of calls and emails to home office in years of past threats of commission reductions and got the program canceled. Unfortunately, today's new breed of agent is not likely to say much upstairs to the company, just to perhaps the DM and other agents. Good Luck.

Let's say that you want to increase your agency fire sales gross written premiums enough to offset the commission reductions. How much would you have to increase sales to gain the same income as before the commission decrease?  You say, "Of course it would be +30% on NB and +28.5 on renewals that equals the reduction as stated in the headline of this article!"

Let's look at the results of that answer.  The comparisons of the before and after commissions on a $2,000 premium policy are shown above. On a new business Smart Home sale, your answer says you need to increase GWP by 30%.  $2,000 x 130% = $2,600 x 14% comm = only $364 not the $400 paid under the old schedule. Same for the renewal of $2,000 x +128.5% =$2,570 x 10% = $257, not the $280 paid under the old schedule.

Similar to the stock market, a $100 share of stock takes a one week hit going down 50%. However, in the three weeks following, that same stock rises 50%. Are you even? $100x-50%= -$50; $50x+50%= +$25
No! You're not even, you're still down by -$25.
What does your GWP increase need to be to match the previous New bus. income?  $400 / $280 = +43%
Renewals- $280 / $200 = +40%.
We now repair auto electric Windows
Call  for Board up Service 24/7

Robinson Glass ad
Click to check out our website   08/15
      T
ulsa                    Broken Arrow
918/664-7904           918/258-7578
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. 
computer. moving finger on mouseAds are hot links to our advertisers websites. Click any ad for more details.  
ads rotated for 03/15 issue.
                           4balls flashing (attention0
Please welcome two new advertisers to the Oklahoma Voice. Abest Air & Heat Inc. and ServiceMaster X Recovery Services. Please click on their ads to access the websites to learn the wide variety of services they can perform for your clients in times of need or disaster.  
Price Optimization Allegations Challenged, NAIC Investigating Practice
Reaction to industry-wide price optimization allegations from a consumer group known to call out insurers has been somewhat critical yet guarded - however it appears regulators may already be starting to look into the practice.

Consumer Federation of America this week said it has "clear evidence" that insurance giant Allstate is basing auto insurance premiums on a factor called "marketplace considerations," which CFA argues have nothing to do with a driver's risk.   Read More Here   12.16.14 IJ 

 

Bethel Collision Center of Broken Arrow, OK.
BBB Rated A+
Bethel Collision Center.jpg
View our Website here
02/15






We Are The BRAND
918-496-2665

Mike Emerson, Sales Manager
Available Evenings, Weekends & Holidays

             No Overtime Charges!          02/16 

Click our logo above to view our website
Pulse of the Agent Poll Results from last issue.  
Do you prioritize placing Retaining Customers
at the top of the list, followed by Servicing
Customers- over attracting New Customers?


Absolutely, as new business is rare 56%

We spend 2/3 servicing and 1/3 new business operations  11%

We get tons of new business from Farmers great lead program 0%

We need a new Mgmt. Company that truly knows & are engaged in our business 33%

Spring Forward: 2015

The clocks are set ahead one hour during Spring Forward. In 2015, this occurs on Sunday, March 8th. Be sure to test all smoke alarms replacing batteries if needed.
DM Conference in San Diego Feb 7-8

 Most DMs attended San Diego a few weeks ago to for the Annual DM Conference. Here are a few of the stories coming from those meetings.
1. DMs were told to raise their District AGM Average Scores in 2015. (Agent scores determine DM score)
2. High percentage of Agent Smart Office Compliance by June, 2015, for DM to get a bonus. Includes outdoor signage that is grandfathered until end of 2016.
3. A crackdown will begin on agents with outside employment.

=============================================================
Policy Series Code Explainer Sheet  4balls flashing (attention0
Here is a explainer sheet that defines the policy series codes shown on your folio listings. You will want to copy or print this explainer for future use in identifying policies and commission paid.

Policy Code Explainer  
Conn. Senator Urges DOJ to Investigate Auto Insurers' 'Preferred' Repair Shops

Insurance Journal 2.24.15- U.S. Senator Richard Blumenthal (D-Conn.) is urging the Department of Justice (DOJ) to investigate a recently aired CNN report's allegation that auto insurers may be pressuring consumers to repair their vehicles at the insurers' preferred repair shops.

"Contrary to what consumers may be led to believe by their insurers, repair shops preferred by insurers do not necessarily equate with quality repairs," Blumenthal wrote in a letter sent to U.S. Attorney General Eric Holder last Friday.  Read more here                  


Body shops say insurance companies are skimping on repairs


Body shops say insurance companies are skimping on repairs
Body shops say insurance companies are skimping on repairs

Moore Tordado pic
Trades needed for any disaster including ice, tornado, strong winds, flood and earthquake, or just when a client needs a referral for a repair.

                                                

Fewest Tornadoes on Record in Oklahoma in 2014
January 4, 2015 IJ

Just 16 tornadoes touched down in Oklahoma in 2014, which the National Weather Service says is the fewest on record.

Oklahoma state climatologist Gary McManus says a combination of factors led to the relative lack of tornadoes, The Oklahoman reported.

The first five months of the year were among the driest on record, and tornado outbreaks are not common during dry conditions because there are few thunderstorms to produce them, McManus said. When rain did come, it tended to be from warm air masses that brought moisture but little severe weather.

"There really wasn't a lot of severe weather at all in 2014," McManus said.

The year's strongest tornado was an EF2 on April 27 that cut an 11-mile path through Ottawa County and Cherokee County, Kansas. One person died in Quapaw, and at least five businesses and 15 homes were destroyed. Dozens more buildings, including the city's fire station, sustained damage.

  

We need our readers to assist us in developing an Emergency
Responder Listing in times of disaster or need
This space is reserved for advertisers that desire to post a line ad in the Oklahoma Voice. We are attempting to build an emergency responder listing to assist agents with referrals in times of disaster. We are seeking paid advertising from the following trades-
State Registered Roofers,
Licensed Plumbers,

Fencing Contractors new1flashing
Guttering Contractors
Tree Trimming & Removal
Licensed Electricians
Debris Removal & Hauling
 
If you have a client doing an honest business in the above trades or other trades that would be in demand following a disaster please contact Oklahoma Voice Editor. Their ad would appear similar to this-

11/15 
Fitzgerald Roofing, Inc. 4806 E. 37th Place Tulsa, OK 74135 Phone 918 271-7171
BBB Rating A+ Reg. Lic.# 0290  Also Car Ports & Patio Covers see more on FaceBook
      
 ABEST AIR & HEAT INC. Available 24 Hours A Day, 7 Days a Week. Website  
No Overtime Charges  We Sell & Service All Brands. Call us at 918 496 2665 
 

ServiceMaster X Recovery of Residential & Commercial Disaster Restoration Services. Emergency Response: 918-806-6600 Serving in Tulsa Creek Counties & beyond.  

And,
website link, if applicable. The ad cost is $120.00 annually. Acceptable company logos are $30 extra depending on size and acceptable format. The ads would run for 12 months in our Oklahoma Voice Newsletter sent to Farmers Agents across the state. Editor

Red River Roofing logo transparent Check out our website
 Edmond 405-330-0025
Tulsa 918-270-2888
Factory Certified Contractor.  Please visit our Edmond & Tulsa Showrooms  At Red River Roofing, our goal is to provide you the proper information to make the best roofing decisions. Should you have any concerns, questions, or comments, do not hesitate to contact our offices.
Residential & Commercial
Roof Repair & Replacement. www.redriverroofing.com     [email protected]          05/15


UFAA
15 "Oklahoma Voice" Wins National Recognition

UFAA Chapter 15 editor was notified in February, the "Oklahoma Voice" publication has been awarded the "2014 ALL STAR AWARD" by our newsletter vendor, Constant Contact stating, "Last year, your outreach to your clients and engagement with them was exemplary. Stellar. Your clients noticed and responded positively. And we noticed, too.
We are thrilled to name your publication to our roster of "2014 All Stars". Only [the top] 10% of our 660,000 customers are chosen for this award
. Relationships matter to us at Constant Contact. Thanks for making yours count. Congratulations again, and we hope you have another great year in 2015".

Here are the stats for the Oklahoma Voice compared to other similar type organizations tracked by our newsletter vendor based on over 200 million emails sent nation-wide through their email systems.

BUSINESS TYPE-  Emails Sent-        Delivered    Bounced    Opened    Links Clicked    Opt-out
Nonprofit Membership Organizations -        97.2%        2.80%        9.55%          9.46%           .41%
Chapter 15 Oklahoma Voice Newsletter- 99.0%          .90%        70.2%           22.9%           .25%

Chapter 15 Officers and editor staff express our "THANKS TO YOU" the readers who are engaged in the Oklahoma Voice and concern for your business - making this award possible!
Ok Ins Dept Logo  
Oklahoma Continuing Education
Source: OID website UPDATED: 01/09/2015

==============================

 

 

 

 Requirements and Renewal Guidelines

All resident agent producers, Title producers, CSRs and adjusters are required to complete continuing education biennially prior to license renewal.

RENEWAL GUIDELINES -

CE providers are required to report course completions (electronically) within 10 business days of course completion. The transcript must show CE COMPLIANT, at least 3 business days before the licensee will be allowed to process their renewal application online. Best Practice: CE should be completed at least 30 days prior to the license expiration date to allow ample time for the CE provider to report the credit. This will also allow time for the licensee to process their renewal prior to expiration.

 

CE REQUIREMENTS BY LICENSE TYPE

Effective January 1, 2015 a new CE course for earthquake will be required for licensees' holding a PROPERTY line of authority. Refer to the appropriate license type below for details.

  

Resident Producers (excluding Title producers) are required to complete 24 hours of continuing education. The 24 hours should consist of 3 hours of ethics, 2 hours of legislative update and 19 hours of producer general. A licensee holding a property line of authority is required to complete a 1 hour earthquake course, which will be counted as part of the 19 hour general requirement.

Additional Selling CE Requirements (counts toward 19 hours of producer general credit):

  • Producers that sell, solicit, or negotiate long term care insurance must take the initial 8 hour long term care partnership course prior to offering this type of product and complete a 4 hour long term care partnership course each renewal cycle thereafter. http://okltcpartnership.org/)
  • Producers that sell, solicit, or negotiate Annuity products are required to take a onetime 4 hour course on Annuity products.

Customer Service Representative (CSR)

is required to complete 13 hours of continuing education. The 13 hours should consist of 3 hours of ethics, 2 hours of legislative updates and 8 hours of producer general. A licensee holding a property line of authority is required to complete a 1 hour earthquake course, which will be counted as part of the 8 hour general requirement.

 

Are you age 65 and been a licensed agent for 20+ years? you may qualify for the free Okla. CE Mentoring Course worth 24 hrs credit hours and takes 10 minutes to complete.  See CE Mentor letter HERE by Commissioner John Doak with short form on page 2. This became available in 2011. 
No documentation required. Just sign off on the simple OID form and return it prior to your renewal date.
Komando Header  
By Kim Komando: Tech News

 

Oklahoma Voice has reprint rights. Copyright 1995-2015 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.
ServiceMaster X Recovery Services
Broken Arrow, Oklahoma

 

Shane Pratt, Owner

P. O. Box 806 Broken Arrow Ok 74013

Cell: 918/348-2823

24 hour Emergency Response:

918-806-6600
Serving Tulsa & Creek Counties & beyond.

Residential & Commercial Disaster Restoration Services     02/15                             Click our logo to view our website 

 


Ok Ins Dept Logo
From the Oklahoma Insurance Department
The following "Final Orders" are from the OID public information legal section of the OID website. These violations and penalties are shown here to ONLY warn, inform and educate you on Okla. Insurance Laws.

Rate and Form Filings 2014
Click link heading above. Then, scroll to bottom of page and click [month] 2014. Then, scroll the entire document for rate & form filings for all companies in alpha order.

As we [the OID] work to help you comply, we will vigorously enforce 59 O.S. � 1310 (A) (21) which relates to failure to notify of change of address. 

Okla Ins Dept: Change of address or name more than 30 days after the change occurred shall be no less than a $100 fine.  

The Oklahoma Insurance Department encourages all licensees to update their mailing personal and business addresses and email addresses as often as possible. This feature is available free of charge by visiting the SBS website

More than 2,500 Oklahoma Agents Take Earthquake Coverage Class

"Consumers need to understand these policies," Doak said. "This is major, catastrophic coverage. It's not light coverage. You really have to have major damage or something significant to happen."

Doak said he is concerned that a growing number of policies exclude from coverage earthquakes that are induced by man-made activity.   Read more here 

 

Check out the UFAA Chapter 15 Home Page with more Farmers, industry news, member benefit information, newsletter archives, including breaking news too late or too large to publish above.
  
Click our Home Page link for more company information on the
SMART HOME POLICY.
  4balls flashing (attention0
Just click the   Home Page Link >> Here <<
 
UPDATED: Latest Okla. Company Comparison Rate Charts- Auto &  Home:


 ==========================================================================

 

UFAA LAbel

             

       Did you know? As a member of UFAA you get:

                1 hour of tech support a month

1 Free @ufaa.com email address    

        1 Free web page with your domain name

 

                                                                                   Call us today Toll Free, Primary # 1-866-441-8018

                                                                                            Alex Conger    

Click logo above to access the Oklahoma Membership app.

 Have you joined UFAA? We just can't make it much easier. Just mouse the Join UFAA logo to obtain the a membership application. Fill it out and attached a check and mail or use the bank card option and fax it to 1-314-631-7963. United we stand. Divided we fall.