Bulletin

 

February 22, 2011

 

To our Ohio Agency Partners:

 

Ohio Homeowner Rate Adjustment Announced

 

Our continued growth in the state of Ohio supports Frankenmuth Insurance’s commitment to providing quality insurance products to the customers you serve.  We thank you for continuing to think of us on new business. 

 

As economic factors continue to negatively impact our ability to provide the highest quality insurance product for the policyholders we serve, it has become necessary to make adjustments in a number of areas.

 

To that end, the following modifications will become effective on March 1, 2011:

 

Rule Changes

 

Agents Binding Authority – “Risks with frequent claim problems” has been expanded to note “Risks with frequent claim problems or monoline risks with any claims in the last 3 years are ineligible.”  This action is being taken to assist our improvement of our mix of Auto and Home business. 

 

Premium Adjustments

 

Insurance Score – The following discounts are revised:

 

            880+ from -28% to -26%

            825-879 from -19% to -17%

 

Base Rates – Because of adverse loss experience and in order to improve our results, we will be increasing our base rates on our homeowner line and Ultra Home.  We will be adjusting our rates slightly lower on the HO-4 and HO-6 areas.  We will continue to use our Renewal Premium Cap (RPC) to moderate any rate adjustments on our renewal policies.  This will assist you in retaining your most profitable customers. 

 

Group Changes

 

The following Ohio Homeowner Group discounts were adjusted with this Product Review:

 

91, Certified Public Accountants, 18% to 16%

122, Credit Union Members – Ohio, 6% to 5%

169, Alumni Associations – Ohio, 6% to 5%

 

As always, should you have any questions, comments or concerns, please do not hesitate to contact your Field Manager or Underwriter or me.