Oklahoma Insurance Department 2014 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 Once again, I have been honored and humbled to serve the great state of Oklahoma. Over this past year, the employees of the Oklahoma Insurance Department have spent countless hours educating, assisting and protecting Oklahomans while also taking steps to ensure that the local insurance market stays strong. I am extremely proud of the work they’ve done and will continue to do. In accordance with Oklahoma State Statute 36 § 307, it is my pleasure to present to you the Oklahoma Insurance Department’s 2014 Annual Report. This report reflects the activities of the department and summarizes the financial disclosure and listing of companies operating in Oklahoma. Should there be 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 2015. 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. 1 Oklahoma Insurance Department 2014 ANNUAL REPORT Dear Citizens of Oklahoma, Thank you once again for the distinct honor of allowing me to serve you as Insurance Commissioner in our great state. I am pleased to provide you the 2014 Oklahoma Insurance Department (OID) Annual Report. The report details the work of the OID in the past year and describes the functions of each division within the Department. 2014 marked the fourth year of my elected term and I am looking forward to another four years of serving you. Our mission continues to be “Protecting Oklahomans.” Accordingly, our efforts focus on enforcing insurance laws and regulations, assisting consumers with insurance- related issues and improving services to insurance agents and producers. My administration made considerable progress helping consumers recover from natural disasters the previous year and worked to improve the insurance industry. Looking forward, I will continue to focus on educating Oklahoma consumers about the insurance market and providing the necessary tools to fortify a healthy insurance environment across our state. Highlights from 2014 include: • Helping more than 27,000 consumers over the phone and collecting nearly $3.4 million for consumers. • Co-hosting the 3rd Annual National Tornado Summit with a record attendance of nearly 1,200. • Launching a new era for captive insurance in Oklahoma with the passage of HB1108. • Traveling to all 77 counties in the state to meet with consumers, fire departments, local leaders and insurance professionals. • Returning $5.5 million in unspent funds to the state Legislature for Fiscal Year 2015. • Hosting eight Senior Fraud Conferences across the state to educate seniors on fraud and teach them how to protect themselves. Legislatively, we continued to focus on pro-business and consumer protection initiatives. Some highlights include: - HB2929 prevents someone from profiting by causing an insurer to become insolvent through intentional wrongdoing, fraud or negligence. - HB2928 strengthens the repercussions against a bondsman who files a false affidavit with the Commissioner. - SB503 allows the Oklahoma Tax Commission to prohibit the issuance of any replacement license plate if the original plate is seized by law enforcement for driving without proof of insurance. - SB1319 allows the Commissioner to require any form or fee submitted to OID to be in an electronic format. I wish to extend my sincerest gratitude to everyone at the OID for their commendable service to Oklahoma and the insurance community. As always, if you ever have questions or need assistance, please contact us. Respectfully, John D. Doak Oklahoma Insurance Commissioner 2 Oklahoma Insurance Department 2014 ANNUAL REPORT TABLE OF CONTENTS Introduction 1 Cemetery Merchandise Trusts 108 Letter from the Commissioner 2 Discount Medical Plan Organizations 109 Table of Contents 3 Motor Service Clubs 110 About Commissioner John D. Doak 4 Multiple Employer Welfare Arrangements 111 Top Accomplishments 5 Perpetual Care Cemeteries 112 Pre-paid Funeral Benefits Permit Holders 114 Divisions Professional Employer Organizations 125 Consumer Assistance 6 Purchasing Groups 128 Field Representatives 8 Risk Retention Groups 136 Anti-Fraud Unit 9 Service Warranty Companies 140 Legal Division 10 Surplus Lines 144 Public Policy 11 Third Party Administrators 149 Medicare Assistance Program 12 Vehicle Protection Products 158 ISO Review Program 13 Viatical Settlement Providers and Brokers 159 Licensing and Education 15 Communications 16 Market Share Reports Real Estate Appraiser Board 18 Life, Accident and Health Lines of Business 160 Bail Bonds 19 Property and Casualty Lines of Business 161 Rate & Form 19 Fraternal Lines of Business 162 Financial 20 Title Lines of Business 162 Workers’ Compensation 20 HMO, Non-profit Organizations and Captives 21 Prepaid Dental Lines of Business 163 Receipts, Revenue Distribution & Expenditures 22 Life, Accident and Health Top Ten Companies 163 Company Listings Property and Casualty Top Ten Companies 172 Licensed Insurance Companies 23 Fraternal Top Ten Companies 191 Accredited Reinsurers 107 Title Top Ten Companies 194 Health Top Ten Companies 195 3 Oklahoma Insurance Department 2014 ANNUAL REPORT ABOUT COMMISSIONER JOHN D. DOAK John D. Doak was sworn in as Oklahoma’s 12th Insurance Commissioner on January 10, 2011. He was re-elected on June 24, 2014 after garnering 77 percent of the statewide vote. Doak’s dream to pursue a career in insurance began as a young man. His father, a stockbroker, taught him the value of hard work and the challenges and benefits of operating within a diverse financial network. Doak’s interest in politics was piqued during his days at the University of Oklahoma. It was there, during classes taught by former Oklahoma Gov. Henry Bellmon and former State Rep. Neal McCaleb, that Doak first realized his desire to pursue public office. He graduated in 1988 with a Bachelor of Arts degree in political science. Shortly after graduation, Doak opened his own branch of the Farmers Insurance Agency in Tulsa. As the business began to grow, he hired other agents to meet the needs of Tulsa-area consumers. Over the course of six years, he received numerous awards and commendations for his success, including being named Farmers’ third Top Life Insurance Salesman in the nation. Doak next served as an executive for several insurance firms including Marsh,Aon Risk Services, HNI Risk Services, and Ascension Insurance, where he was named Senior Vice President of Acquisitions. Such diverse experience in the industry, from small business owner to corporate executive, gives Commissioner Doak a unique and broad understanding of how insurance works; knowledge that benefits the businesses and citizens of Oklahoma. He is committed to ensuring that Oklahomans have access to affordable, transparent health care within a competitive, robust market that helps businesses succeed. Commissioner Doak and his wife, Debby, live in Tulsa with their children, Zack and Kasey. Commissioner Doak meets with Grady Commissioner Doak and ISO Coordinator Kevin Commissioner Doak tours tornado damage Rep. Jim Bridenstine, Commissioner Doak and County Sheriff Jim Weir during a stop on the Stoneking present a citation of congratulations to in Quapaw. Rep. Randy Neugebauer at the 2014 National Commissioner’s 77 County Tour. the Murray Spur Fire Department for improving Tornado Summit. its ISO rating. 4 Oklahoma Insurance Department 2014 ANNUAL REPORT TOP ACCOMPLISHMENTS 1 Consumer 3 Captive Insurance Launch 5 Returning Money to Legislature Assistance Success Once again, the Consumer Assistance Division 2014 ushered in a new era for captive insurance in OID returned $5.5 million in unspent funds to the state had a tremendous year. The division helped 27,586 Oklahoma. With the passage of a new law, the Sooner Legislature to help fill holes in the state budget for consumers over the phone and collected nearly $3.4 State became much more attractive to companies Fiscal Year 2015. During Commissioner Doak’s first million for consumers. Division staff members also considering forming a captive. The success was term, the agency has returned $22.5 million total. showed their dedication to serving Oklahomans by immediate. Within a few short months, the applications attending consumer outreach events across the state. started to arrive. Less than a year after the new law took effect, 12 captives had been approved. 2 National Tornado Summit The 2014 National Tornado Summit, co-hosted by OID, set an attendance record of nearly 1,200. Insurance professionals, emergency managers and weather experts from 36 states learned how to better prepare for, respond to and recover from devastating tornadoes. “Our commitment to being fiscally responsible allowed us to build up a healthy