Oklahoma Insurance Department 2015 ANNUAL REPORT The Honorable Mary Fallin, Governor of Oklahoma The Honorable Brian Bingman, President Pro Tempore of the Senate The Honorable Jeffrey Hickman, Speaker of the House The Honorable Gary Jones, State Auditor and Inspector Over the last four and a half years it has been my great honor to serve the people of Oklahoma as Insurance Commissioner. The staff of the Oklahoma Insurance Department is a team of dedicated public servants who work hard every day to protect consumers and ensure that our insurance markets remain competitive. I couldn’t be prouder of what we have accomplished. To that end, it is my pleasure to present to you the Oklahoma Insurance Department’s 2015 Annual Report. This report reflects the activities of the department and summarizes the financial disclosure and listing of companies operating in Oklahoma. Should you have any questions about the content of this report, my staff and I are at your disposal. Respectfully, John D. Doak Oklahoma Insurance Commissioner The Oklahoma Insurance Department is accredited The accreditation principles set by the NAIC allow by the National Association of Insurance the Department to better protect consumers and Commissioners (NAIC) until 2020. set and maintain the highest standards in financial regulation for Oklahoma’s insurance industry. To achieve this accreditation, the Department must meet stringent national standards that demonstrate Commissioner Doak and the staff of the Oklahoma financial solvency regulation of insurance Insurance Department view accreditation by the companies. NAIC as an important part of our commitment to the citizens of Oklahoma. TOC 1 Oklahoma Insurance Department 2015 ANNUAL REPORT Dear Citizens of Oklahoma, It has been my distinct honor and privilege to serve the great State of Oklahoma and its citizens for the past five years.The first year of my second term in office was marked with many successes, even in the face of natural disaster. The annual report before you offers a snapshot of the Insurance Department’s functions of each division, as well as a look into the Oklahoma insurance industry that we regulate. The mission of the Oklahoma Insurance Department has always been and will continue to center around “Protecting Oklahomans”. Record disasters over the last five years have only proven that we are “Oklahoma Strong”. My office will faithfully enforce the insurance laws and regulations fairly, assist consumers with insurance-related issues and improve our services to the insurance agent and producer community. Moving forward, we will continue to do everything in our power to educate consumers on insurance-related issues while also ensuring Oklahoma has a healthy insurance market. 2015 was the first year of my second term and I am eager to build on the momentum as we move into the final years in office. Here are just a few of our many accomplishments in 2015. • Held the first-ever Cyber Summit • Launched a new service to locate lost life insurance policies • Recovered $4,293,299 for Oklahoma consumers • Visited ten cities across the state to educate seniors about fraud • Helped 133 fire departments improve their Public Protection Classification, resulting in potential home insurance savings for thousands of Oklahomans Our mission is only fulfilled by the great people who work at the Oklahoma Insurance Department.They always put the Oklahoma consumer first, which speaks to the quality of staff I’m blessed to lead. Thanks for the opportunity to serve as your Commissioner and, as always, if you ever have questions or need assistance, don’t hesitate to contact my office. Best, John D. Doak TOC 2 Oklahoma Insurance Department 2015 ANNUAL REPORT TABLE OF CONTENTS Introduction 1 Cemetery Merchandise Trusts 125 Letter from the Commissioner 2 Discount Medical Plan Organizations 126 Table of Contents 3 Motor Service Clubs 127 About Commissioner John D. Doak 4 Multiple Employer Welfare Arrangements 128 Top Accomplishments 5 Perpetual Care Cemeteries 129 Pre-paid Funeral Benefits Permit Holders 131 Divisions Professional Employer Organizations 142 Consumer Assistance 6 Purchasing Groups 145 Field Representatives 8 Risk Retention Groups 153 Anti-Fraud Unit 9 Service Warranty Companies 157 Legal Division 11 Surplus Lines 161 Public Policy 12 Third Party Administrators 166 Medicare Assistance Program 13 Vehicle Protection Products 175 ISO Review Program 14 Viatical Settlement Providers and Brokers 176 Licensing and Education 16 Communications 18 Market Share Reports Real Estate Appraiser Board 20 Life, Accident and Health Lines of Business 177 Bail Bonds 21 Property and Casualty Lines of Business 178 Rate & Form 21 Fraternal Lines of Business 179 Financial 22 Title Lines of Business 179 The Oklahoma Option 22 HMO, Non-profit Organizations and Captives 23 Prepaid Dental Lines of Business 180 Receipts, Revenue Distribution & Expenditures 24 Life, Accident and Health Top Ten Companies 180 Company Listings Property and Casualty Top Ten Companies 189 Licensed Insurance Companies 25 Fraternal Top Ten Companies 208 Accredited Reinsurers 124 Title Top Ten Companies 212 Health Top Ten Companies 212 TOC 3 Oklahoma Insurance Department 2015 ANNUAL REPORT ABOUT COMMISSIONER JOHN D. DOAK In January 2011, John D. Doak became the 12th Insurance Commissioner of Oklahoma. He was sworn in to office for a second term on January 12, 2015, after receiving 77 percent of the vote. Doak graduated from the University of Oklahoma with a Bachelor of Arts in Political Science. Shortly after graduation, Doak opened a successful insurance business in Tulsa. As his career thrived, Doak worked in numerous roles within the insurance industry. He served as an executive for several risk and insurance service companies including Marsh, Aon, HNI and Ascension. Under Commissioner Doak’s leadership, each year the Oklahoma Insurance Department has operated under budget. In the last four years, the Department has returned a total of $22.5 million in unspent funds to the state treasury and has generated more than $1 billion in revenue for the State of Oklahoma. As an active member of the National Association of Insurance Commissioners, Doak is the Vice Chair of the Property and Casualty Insurance Committee, the Chair of the American Indian and Alaska Native Liaison Committee, and a member of the International Insurance Relations Committee. Doak also shapes important national insurance policy issues as a member of the Government Relations Leadership Council. Doak is committed to protecting all Oklahomans by his pledge to visit all 77 counties annually. During his visits, which he has done each year since taking office, he promotes public awareness of important insurance issues through education and community outreach. Doak and his wife Debby live in Tulsa with their children, Zack and Kasey. They are members of the South Tulsa Baptist Church. This year, Commissioner Doak welcomed former Cimarron County is one of the 77 counties While touring tornado damage in Sand Springs, Commissioner Doak speaks to the crowd at the Sen. Ben Nelson to the 2015 National Tornado Commissioner Doak will visit by the end of the Commissioner Doak comforted a storm survivor. 2015 Cyber Summit. Summit. year. TOC 4 Oklahoma Insurance Department 2015 ANNUAL REPORT TOP ACCOMPLISHMENTS 1 Cyber Summit 3 National Tornado Summit 4 Senior Fraud Conferences The Oklahoma Insurance Department held its first Insurance industry professionals, emergency Fighting fraud isn’t easy. To help seniors stay safe, ever Cyber Summit in 2015. The event welcomed managers and weather experts came to the 2015 OID’s Medicare Assistance Program visited ten cities more than 100 insurance industry representatives who National Tornado Summit with one goal in mind: across the state to educate them about the latest gained valuable insight into warding off cyber attacks Protecting communities. More than 1,000 attendees scams. Seniors learned how to spot a scam, how to that leave companies and customers vulnerable to from 38 states heard from top experts in their field and avoid it and how to report it. financial ruin. went home better prepared to respond to disasters. 2 Lost Life Policy Locator 5 Earthquake Education This year, OID launched a new service to locate the Oklahoma’s increased earthquake activity lost life insurance policies of deceased loved ones. has more and more Oklahomans purchasing In less than six months OID located 20 policies worth earthquake insurance. To make sure agents are more than $360,000. properly educating consumers about the product, Commissioner Doak issued an emergency rule requiring licensees to complete one hour of continuing education on earthquake insurance every two years. Since the rule was adopted, nearly 7,000 licensees have completed an earthquake course. TOC 5 Oklahoma Insurance Department 2015 ANNUAL REPORT CONSUMER ASSISTANCE The Consumer Assistance/Claims Division educates Oklahomans about insurance by answering questions and investigating consumer complaints about insurance companies, agents and adjusters. The team helps people through a variety of avenues including phone calls, emails, website inquires, written correspondence, face-to-face meetings and during community outreach activities. The Consumer Assistance Division also plays a big role in the Oklahoma Insurance Department’s disaster response efforts by providing insurance advice and assistance to victims across the state. Contact Complaints by Line of Business Complaints by Number Lydia Shirley, Assistant Director Consumer Assistance/Claims Division Misc. [email protected] 10% Accident & Health 1318 405-521-6624 Bail Bonds Auto 731 9% Life Accident & Health Homeowners 463 CONSUMER ASSISTANCE 8% 39% Life & Annuity HOTLINE Homeowners 299 13% Misc. 387 1-800-522-0071 Auto Consumers with questions can call 21% Commercial 74 the Consumer Assistance Hotline or visit oid.ok.gov 0 300 600 900 1200 1500 How we can help • Verify an agent’s license Top Reasons for Complaints • Investigate your complaint (All Lines of Insurance) • Explain an insurance policy • Claim Handling – 66% Commissioner Doak, Rep. Mike Shelton and Rep.