agent commission program overview. little known facts zcompsource oklahoma (cso), formerly oklahoma...
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Agent Commission Agent Commission Program OverviewProgram Overview
Little Known FactsLittle Known Facts
CompSource Oklahoma (CSO), formerly CompSource Oklahoma (CSO), formerly Oklahoma State Insurance Fund, was created by Oklahoma State Insurance Fund, was created by legislation in 1933 to provide an avenue for legislation in 1933 to provide an avenue for Oklahoma employers to obtain workers’ Oklahoma employers to obtain workers’ compensation coverage at reasonable ratescompensation coverage at reasonable rates
CSO Board of Managers approved an innovative CSO Board of Managers approved an innovative Agent Commission Plan allowing licensed Agent Commission Plan allowing licensed Property & Casualty agents to partner with CSO Property & Casualty agents to partner with CSO and receive commission for their services and receive commission for their services beginning in 2002. This program is a new beginning in 2002. This program is a new venture for CSO. venture for CSO.
CSO has created its own financial growth and CSO has created its own financial growth and stability by utilizing sound insurance business stability by utilizing sound insurance business practices and investment earningspractices and investment earnings
CSO, by its mere existence, impacts market rates, CSO, by its mere existence, impacts market rates, keeping them low, thus benefiting all employers, keeping them low, thus benefiting all employers, whether they insure through CompSource whether they insure through CompSource Oklahoma or notOklahoma or not
CSO is self-supporting and self-sustaining without CSO is self-supporting and self-sustaining without state appropriated dollarsstate appropriated dollars
CSO is non-profitCSO is non-profit
Little Known Facts Little Known Facts continued . . .continued . . .
CSO rescued 5,000 injured Oklahomans whose CSO rescued 5,000 injured Oklahomans whose claims were delinquent at the Multiple Injury claims were delinquent at the Multiple Injury Trust Fund by providing loans totaling Trust Fund by providing loans totaling approximately $49 millionapproximately $49 million
CSO has returned more than $62.4 million in CSO has returned more than $62.4 million in dividends to policyholders over the last four yearsdividends to policyholders over the last four years
CSO has always provided a constant & stable CSO has always provided a constant & stable market for Oklahoma employers even as other market for Oklahoma employers even as other carriers have come and gonecarriers have come and gone
Little Known Facts continued Little Known Facts continued . . .. . .
CompSource Oklahoma CompSource Oklahoma Background and GoalsBackground and Goals
New Name Effective 7-1-01New Name Effective 7-1-01 Name developed in-house Logo designed in-house
New OutlookNew Outlook New PhilosophyNew Philosophy New DirectionNew Direction Stable Market - Since 1933Stable Market - Since 1933 Outside Agent Service RepresentativeOutside Agent Service Representative
Experienced Staff of ProfessionalsExperienced Staff of Professionals Service DrivenService Driven Agent Focused - Building a long-term relationship Agent Focused - Building a long-term relationship
with this newly established programwith this newly established program Agents are Our New CustomersAgents are Our New Customers Dual RoleDual Role
Operating as a Standard Carrier Operating as a Guaranteed Market
Agent Underwriting TeamAgent Underwriting Team
CompSource Oklahoma CompSource Oklahoma Background and Goals Background and Goals continued . . .continued . . .
Agent TeamAgent Team
Prior agent experience - 85 + YearsPrior agent experience - 85 + Years ServiceService
Tammy McCalip - Agent Service Representative Kim Root - Agent Service Coordinator
Underwriting DepartmentUnderwriting Department Barbara McMullen - Team Leader Paula Mullendore - Underwriter Beverly Lundy - Underwriter Tracy Pexa - Underwriting Assistant
Underwriting Staff & Underwriting Staff & ExperienceExperience
Staff of 32 peopleStaff of 32 people David Fain, Manager 1 Assistant Manager 7 Senior Underwriters 12 Underwriters 1 Agent Service Representative 1 Agent Service Coordinator 9 Administrative Support Personnel
Total Underwriting Experience of 414 yearsTotal Underwriting Experience of 414 years Average of 13 years experienceAverage of 13 years experience
Contracting RequirementsContracting Requirements
Main requirements to qualify:Main requirements to qualify: Direct Agent / Agencies - No MGA’sDirect Agent / Agencies - No MGA’s E & O Coverage - $1,000,000 limit with an “A” E & O Coverage - $1,000,000 limit with an “A”
rated Carrierrated Carrier OK Property & Casualty Resident Agent / Agency OK Property & Casualty Resident Agent / Agency
LicenseLicense In Good Standing with the Insurance DepartmentIn Good Standing with the Insurance Department
Underwriting PhilosophyUnderwriting Philosophy
GoalsGoals Underwriting Discipline
Making sure each policy is correctly classified• NCCI Basic Manual Rules and Scopes Manual
Proper premium for exposure Consistency in underwriting practices & procedures
Quick response time
Service oriented
Pricing & ProductsPricing & Products
Medical Deductible ProgramMedical Deductible Program No Schedule RatingNo Schedule Rating Locations and operations within the State of Locations and operations within the State of
Oklahoma and extra territorial jurisdiction Oklahoma and extra territorial jurisdiction CSO Customized Policy Jacket and Policy formsCSO Customized Policy Jacket and Policy forms NCCI affiliate memberNCCI affiliate member Agencies do not have actual or apparent Agencies do not have actual or apparent
authority to bind CSO to any new or renewal authority to bind CSO to any new or renewal coveragecoverage
Certificates of Insurance can only be issued by Certificates of Insurance can only be issued by CSOCSO Agent issued certificates will be rescinded and could
jeopardize the agency agreement
Quoting Requirements for Quoting Requirements for Agent Commission PlanAgent Commission Plan
4-year Loss Runs (3-years plus current year 4-year Loss Runs (3-years plus current year valued within 90 days of the effective date)valued within 90 days of the effective date)
Completed Acord 130 ApplicationCompleted Acord 130 Application Completed CSO Supplemental ApplicationCompleted CSO Supplemental Application Previous years audited premiums with copies of Previous years audited premiums with copies of
audit statementsaudit statements Current Declarations PageCurrent Declarations Page
Billing OptionsBilling Options
Monthly ReportingMonthly Reporting 25% non-working deposit (minimum)
Quarterly ReportingQuarterly Reporting 50% non-working deposit (minimum)
AnnualAnnual Electronic Fund TransferElectronic Fund Transfer Credit Card - VISA, MasterCard and DiscoverCredit Card - VISA, MasterCard and Discover No Premium Financing - We do not allow a 3rd No Premium Financing - We do not allow a 3rd
party to cancel a contractparty to cancel a contract Presently evaluating other optionsPresently evaluating other options
Requirements to Activate Requirements to Activate CoverageCoverage
Required amount of payment payable to CompSource Required amount of payment payable to CompSource OklahomaOklahoma
Completed & Signed Acord 130 ApplicationCompleted & Signed Acord 130 Application Completed & Signed CSO Supplemental ApplicationCompleted & Signed CSO Supplemental Application Completed & Signed CSO Medical Deductible Election Completed & Signed CSO Medical Deductible Election
FormForm Special Forms as requiredSpecial Forms as required Unless a later date is needed, new policy coverage is Unless a later date is needed, new policy coverage is
effective at 12:01 AM the day after we have received and effective at 12:01 AM the day after we have received and approved the previously outlined documentsapproved the previously outlined documents
Cannot activate coverage without the receipt of the Cannot activate coverage without the receipt of the aforementioned documents in our officeaforementioned documents in our office
Commission – Base Commission – Base CommissionCommission
Based on a minimum of 3-year (36 mos.) incurred Based on a minimum of 3-year (36 mos.) incurred Loss Ratio (LR), Commission will be paid as follows:Loss Ratio (LR), Commission will be paid as follows:Loss Ratio CommissionOver 100 % 0%81% - 100% 5%71% - 80% 6%60% - 70% 7%Below 60% 8%
2% commission on risks between 18-35 months 2% commission on risks between 18-35 months with a LR of less than 100%with a LR of less than 100%
Commission statements & checks mailed on the Commission statements & checks mailed on the 1717thth of every month on earned and collected of every month on earned and collected premiumpremium
Commission - Renewal Commission - Renewal BusinessBusiness
If current Loss Ratio (LR) is within the same range If current Loss Ratio (LR) is within the same range as the previous year’s, then the commission rate as the previous year’s, then the commission rate remains the sameremains the same
If the current LR is in a lower range than the If the current LR is in a lower range than the previous year’s, then the commission rate will previous year’s, then the commission rate will increaseincrease
If the current LR is in a higher range than the If the current LR is in a higher range than the previous year’s, then the commission rate remains previous year’s, then the commission rate remains the same if the following conditions are met; the same if the following conditions are met; otherwise, the commission rate will be reducedotherwise, the commission rate will be reduced Agency volume of $250,000 or greater Aggregate loss ratio for all business is less than 100%
(excluding Power of Attorney business)
Non-Eligible Commission ItemsNon-Eligible Commission Items
Premiums less than $1,000Premiums less than $1,000 Any new business with less than 18 months of WC Any new business with less than 18 months of WC
experience or verifiable loss experienceexperience or verifiable loss experience Any State Agency businessAny State Agency business Group Association business that is under contract with Group Association business that is under contract with
CSOCSO Audited premium not paid within 180 days from policy Audited premium not paid within 180 days from policy
expiration dateexpiration date Premiums or coverage outside CSO authorityPremiums or coverage outside CSO authority Non-working deposit premiumsNon-working deposit premiums Any direct business written through Power of AttorneyAny direct business written through Power of Attorney
New Risk & Renewal BusinessNew Risk & Renewal Business
Agent of Record (AOR) letters need to be Agent of Record (AOR) letters need to be submitted 60 days in advance of the renewal datesubmitted 60 days in advance of the renewal date Information on AOR procedures are outlined in the
Agency Agreement
Policy expiration dates at CSO are the first day of Policy expiration dates at CSO are the first day of the monththe month
Website Website www.compsourceok.comwww.compsourceok.com
Visit our website often as we are continually Visit our website often as we are continually improving, updating, and adding areas and services improving, updating, and adding areas and services to our site. to our site.
Each department is listed providing their phone, Each department is listed providing their phone, fax, mailing address, and individual staff member fax, mailing address, and individual staff member e-mail addresses. e-mail addresses.
Current website functionalityCurrent website functionality Report Fraud Report an Injury Request a Certificate of Insurance “Contact Us” (feedback)
Agency Team InformationAgency Team Information
Barbara McMullenAgent Team Leader405-552-5423800-347-3863 ext. [email protected]
Tammy McCalipAgent Service Representative405-552-5872800-347-3863 ext. [email protected]
Paula MullendoreUnderwriter405-552-5422800-347-3863 ext. [email protected]
Kim RootAgent Service Coordinator405-552-5429800-347-3863 ext. [email protected]
Beverly LundyUnderwriter405-552-5409800-347-3863 ext. [email protected]
Tracy PexaUnderwriter Assistant405-552-5481800-347-3863 ext. [email protected]
Mailing AddressPO Box 53505Oklahoma City, OK 73152
Physical Address410 N WalnutOklahoma City, OK 73104
Underwriting Fax: 405-552-5449Agent Service Fax: 405-552-5411