Oklahoma Insurance Department 2016 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 six 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 2016 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 2016 ANNUAL REPORT Dear Citizens of Oklahoma, Few things in life have been more fulfilling than serving these past six years as Oklahoma’s Insurance Commissioner. We have seen many highs but we have also stood strong through some of the largest disasters this state has ever seen. This year’s annual report gives consumers a snapshot into the various divisions of the Insurance Department and the entities it regulates. Each and every year I am reminded that Oklahomans stand strong in the midst of adversity, which furthers my resolve to stay true to our mission of “Protecting Oklahomans.” 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. Consistent with my passion for protecting consumers, along with the statutory obligation to educate the public, my office will continue to do everything in its power to be a resource for all Oklahomans. Some highlights of the last year include: • Visiting ten counties to answer questions about earthquake insurance • Returning nearly half a million dollars to beneficiaries of lost life insurance policies • Recovering $3,844,826 for Oklahomans who called our Consumer Assistance Division • Passing Senate Bill 1186 to allow members of the U.S. Armed Forces and Oklahoma National Guard to obtain an insurance license • Reaching 52,248 people at community events 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 at 1-800-522-0071. Best, John D. Doak TOC 2 Oklahoma Insurance Department 2016 ANNUAL REPORT TABLE OF CONTENTS Cemetery Merchandise Trusts 121 Discount Medical Plan Organizations 122 Introduction 1 Motor Service Clubs 123 Letter from the Commissioner 2 Multiple Employer Welfare Arrangements 124 Table of Contents 3 Perpetual Care Cemeteries 125 About Commissioner John D. Doak 4 Pre-paid Funeral Benefits Permit Holders 127 Top Accomplishments 5 Professional Employer Organizations 138 Divisions Purchasing Groups 141 Consumer Assistance 6 Risk Retention Groups 149 Community Outreach 8 Service Warranty Companies 154 Field Representatives 10 Surplus Lines 158 ISO Review Division 11 Third Party Administrators 163 Anti-Fraud Division 12 Vehicle Protection Products 172 Legal Division 13 Viatical Settlement Providers and Brokers 173 Public Policy Division 14 Market Share Reports Licensing and Education Division 15 Life, Accident and Health Lines of Business 174 Medicare Assistance Program 16 Property and Casualty Lines of Business 175 Communications Division 18 Fraternal Lines of Business 176 Real Estate Appraiser Board 20 Title Lines of Business 176 Bail Bonds Division 21 HMO, Non-profit Organizations and Rate & Form Division 21 Prepaid Dental Lines of Business 177 Life, Accident and Health Top Ten Companies 177 Financial Division 22 Property and Casualty Top Ten Companies 186 Receipts, Revenue Distribution & Expenditures 23 Fraternal Top Ten Companies 205 Company Listings Title Top Ten Companies 208 Licensed Insurance Companies 26 Health Top Ten Companies 209 Accredited Reinsurers 120 TOC 3 Oklahoma Insurance Department 2016 ANNUAL REPORT ABOUT COMMISSIONER JOHN D. DOAK In January 2011, John D. Doak was sworn into office as the 12th Insurance Commissioner of Oklahoma. In 2014, voters awarded Commissioner Doak’s unparalleled performance with a second term and a record 77 percent of the vote. Under Commissioner Doak’s leadership, the Oklahoma Insurance Department (OID) has been transformed into a proactive consumer-oriented governmental body that is physically present to provide consumer assistance to those who have been impacted by catastrophic events such as tornadoes, wildfires, and earthquakes. Commissioner Doak is a graduate from the University of Oklahoma with a Bachelor of Arts in Political Science who, shortly after college, launched 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. Doak and his wife Debby live in Tulsa with their children, Zack and Kasey. Commissioner Doak speaks to Tulsa Mayor Commissioner Doak conducts an interview with Commissioner Doak speaking at the NAIC Commissioner Doak speaks to a tornado survivor Dewey Bartlett after a tornado damaged dozens KOCO-TV about the insurance options available International Insurance Forum in Washington DC. in Wynnewood. of homes and businesses in Tulsa. for people dealing with mental illness. TOC 4 Oklahoma Insurance Department 2016 ANNUAL REPORT TOP ACCOMPLISHMENTS 1. Earthquake Insurance Outreach 3. Consumer Assistance Success 4. Life Policy Locator In order to address growing concerns about By answering phone calls, returning emails, writing The Oklahoma Insurance Department’s Lost Life earthquake insurance, OID hosted ten outreach letters, meeting consumers face-to-face and attending Insurance Policy Locator Service helps Oklahoma events across the state. Consumers were able outreach events, the Consumer Assistance Division consumers find lost life insurance policies purchased to meet with OID representatives for one-on-one helps consumers in a variety of ways. All that hard by deceased loved ones. In 2015, OID located 27 conversations about their earthquake insurance work led to the recovery of $3,844,826 in 2015. policies totaling $452,707. policies. 2. Mental Health PSA 5. Anti-Fraud Charges This year, OID partnered with Cathy Costello to The Anti-Fraud Unit’s CLEET-certified law raise awareness about insurance options for mental enforcement officers protect consumers by health treatment. Cathy is the wife of slain Oklahoma investigating white-collar insurance crimes such as Labor Commissioner, Mark Costello. Cathy and Mark embezzlement, exploitation and fraud. In 2015, their struggled for eight years to find treatment for their actions led to the recovery of $178,050. The Unit son Christian’s mental illness. He now awaits trial for submitted 23 cases for criminal prosecution and 29 his father’s murder. for administrative action. TOC 5 Oklahoma Insurance Department 2016 ANNUAL REPORT CONSUMER ASSISTANCE The Consumer Assistance/Claims Division is the connection between consumers, the Insurance Department and insurance companies. The team answers insurance questions and investigates consumer complaints. The Division also educates Oklahomans through a variety of avenues including phone calls, emails, website inquiries, written correspondence, face-to-face meetings and through community outreach activities. The Consumer Assistance Division also plays a big role in the Oklahoma Insurance Department’s disaster response team by providing onsite assistance to policyholders suffering catastrophic losses. Contact Complaints by Number Top Reasons for Complaints Lydia Shirley, (All Lines of Insurance) Assistant Commissioner • Claim Handling - 53% Accident & Health 1290 [email protected] • Policyholder Service - 31% 405-521-6624 Auto 719 • Underwriting - 11% • Marketing and Sales- 5% Homeowners 399 CONSUMER ASSISTANCE HOTLINE Life & Annuity 319 1-800-522-0071 Fire, CMP 59 Consumers with questions can call Misc. 423 the Consumer Assistance Hotline or visit oid.ok.gov 0 300 600 900 1200 1500 How we can help • Verify an agent’s license • Investigate your complaint • Explain an insurance policy Pedro Jimenez and Lydia Shirley preparing to talk with consumers at a Senior Fraud Conference This year in Consumer Assistance: hosted by OID. •