2008 Annual Report

OKLAHOMA 101ST ANNUAL REPORT & DIRECTORY OF INSURANCE AND RELATED COMPANIES OKLAHOMA INSURANCE DEPARTMENT|800.522.0071|405.521.2828|WWW.OID.OK.GOV KIM HOLLAND, INSURANCE COMMISSIONER The Honorable Brad Henry, Governor of Oklahoma The Honorable Chris Benge, Speaker of the House The Honorable Mike Morgan, President Pro Tempore The Honorable Glenn Coffee, Co-President Pro Tempore The Honorable Steve Burrage, State Auditor and Inspector I am pleased to present to you the 2007 Annual Report of the Oklahoma Insurance Department. This report is established by the provisions of Oklahoma Statutes Title 36 § 307 and summarizes the activities of the Oklahoma Insurance Department through the period ending Dec. 31, 2007. In addition to the required financial disclosures and listing of companies operating in Oklahoma, this report highlights the work of the Oklahoma Insurance Department on behalf of Oklahoma taxpayers. Sincerely yours, Kim Holland Oklahoma Insurance Commissioner The Oklahoma Insurance Department is accredited by the National Association of Insurance Commissioners (NAIC). To achieve this accreditation, the department must meet stringent national standards that demonstrate it effectively regulates insurance companies for solvency and market conduct. Commissioner Holland and the staff of the Oklahoma Insurance Department view accreditation by the NAIC as an important part of our commitment to the citizens of Oklahoma. Accreditation standards enable us to provide expanded consumer protections and to institute and maintain the highest standards in financial regulation. NAIC repeats the accreditation review every five years to confirm that the Oklahoma Insurance Department continues to meet all requirements. The department was most recently accredited in December 2004. Oklahoma Insurance Department 2007 Annual Report & Directory 1 TABLE OF contEnts Table of Contents 2007 Important Moments ................................................................................3 About Commissioner Holland............................................................................9 Oklahoma Insurance Department Divisions and Programs .................................10 Helpful Contact Information ............................................................................13 2007 News from Oklahoma Insurance Department ..........................................14 OID by the Numbers ......................................................................................19 OID Receipts, Revenue Distribution and Expenditures .......................................20 Helpful Insurance Terms and Definitions ..........................................................21 Company Listings Licensed Insurance Companies ......................................................................22 Other Regulated Entities Definitions ..............................................................108 Accredited Reinsurers .................................................................................109 Discount Medical Plan Organizations ............................................................ 110 Motor Service Clubs ................................................................................... 112 Multiple Employer Welfare Arrangements ...................................................... 114 Pre-Paid Funeral Benefits Permit Holders ...................................................... 115 Professional Employers Organizations .......................................................... 131 Purchasing Groups ......................................................................................136 Risk Retention Groups .................................................................................146 Service Warranty Companies ...................................................................... 151 Surplus Lines .............................................................................................154 Third Party Administrators .......................................................................... 162 Viatical/Life Settlement Brokers .................................................................. 174 Market Share Reports Life, Accident and Health Lines of Business .................................................. 175 Property and Casualty Lines of Business ...................................................... 176 Fraternal Lines of Business ......................................................................... 177 Title Lines of Business ................................................................................ 177 HMO, Non-Profit Organizations and Prepaid Dental Lines of Business ................................................................. 177 Life, Accident & Health Top Ten Companies .................................................. 178 Property & Casualty Top Ten Companies ......................................................184 Fraternal Top Ten Companies ......................................................................196 Title Top Ten Companies .............................................................................198 HMO Top Ten Companies .............................................................................199 2 Oklahoma Insurance Department 2007 Annual Report & Directory 2007 IMPORTANT MOMENTS Insurance Department assists insurers, consumers through severe weather Severe weather plagued Oklahomans in 2007 with significant ice storms in January and December, tornadoes in March and May, and floods in August. Throughout the year, Commissioner Holland expedited consumer access to adjusters, helping insurers resolve property and auto claims quickly and accurately. When Oklahoma communities suffer from The January 2007 storm brought ice to many parts of Oklahoma including the capitol complex. weather-related disasters, the Oklahoma Insurance Department works hand-in-hand with Gov. Brad Henry, Oklahoma Emergency Management, and other state and federal agencies to assist Oklahomans in their recovery. During 2007 several federal disasters were declared, and FEMA opened temporary offices in Oklahoma. In response to those declarations, the Oklahoma Insurance Department sent staff to the temporary office in northeast Oklahoma to answer insurance questions and give needed assistance. During the December ice storm, the Oklahoma Insurance Department suffered extended power outages that affected large parts of the state. Commissioner Holland established a temporary command center at another state agency, and Oklahoma Insurance Department services were fully operational within 48 hours of the initial power loss. Holland toured some of the most affected neighborhoods in Oklahoma City with Gov. Henry and other state and business officials. Additionally, she organized a relief effort among insurers to help provide much-needed supplies to the Red Cross shelter in Payne County. Oklahoma Insurance Department 2007 Annual Report & Directory 3 2007 IMPORTANT MOMENTS Anti-Fraud Unit handles variety of cases, investigations The Anti-Fraud Unit is a 12-person law enforcement arm of the Oklahoma Insurance Department. Each year, the anti-fraud team reviews hundreds of cases, investigates and collaboratively shares information with other law enforcement organizations, and refers criminal acts to prosecutors. Operating under the direction of the Commissioner, the team moves quickly to protect Oklahoma citizens from insurance fraud and abuse. The 2007 cases highlighted below represent the diversity of cases the team works on each year. Fraud Type: False Insurance Claim Investigation Summary: An auto insurance company reported that one of its insureds called in September 2006 to reinstate his vehicle insurance policy. The next day the same insured called to file a claim for damages to the car, and the company immediately began processing his claim. Soon thereafter, the company received a call on its fraud hotline from the insured’s co-worker, who reported the insured bragged about his plan to defraud the insurance company. The insured had claimed he accidentally drove into water so deep it covered the windows of his vehicle. Our investigation uncovered that the truck was pulled from the river and then towed to the insured’s place of employment one full week before the insured claimed it happened and six days before he was insured. Results of Investigation: Defendant pled guilty to filing a false claim for insurance and was given a four-year deferred sentence with 12 months of supervision by the district attorney’s office. Fraud Type: Annuity and Identity Theft Investigation Summary: The Coalition Against the Financial Exploitation of the Elderly reported a situation involving a senior citizen and an insurance agent who persuaded the senior to purchase an unnecessary long-term care policy and lend him money from two annuities she owned. In addition, the agent took funds from her money market account without permission and opened a credit card in her name for his personal use. Results of the Investigation: Commissioner Holland permanently revoked the agent’s license, assessed the maximum fine allowed by state law, and referred the matter to the police department for further investigation. 4 Oklahoma Insurance Department 2007 Annual Report & Directory 2007 IMPORTANT MOMENTS Fraud Type: Falsifying an Insurance Claim Investigation Summary: A unique case investigated by the Oklahoma Insurance Department involved an insurance claim and an animal. The insured called his insurance company to report that his horse, insured by the

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