Press Release 1998-07 Department Of Insurance Publishes 1998 Mobile Homeowner Premium Comparison Survey And Personal Lines Complaint Ratio
Contact: Vista Brown, Executive Assistant for Policy Affairs (602) 912-8456
FOR IMMEDIATE RELEASE, October 9, 1998
Acting Director Charles R. Cohen announced today that the Arizona Department of Insurance recently published the Mobile Homeowner Premium Comparison Survey and the Complaint Ratio for personal lines insurers. The Mobile Homeowner Premium Comparison Survey lists 19 insurers writing approximately 85 percent of the mobile home insurance business in Arizona. The Personal Lines Complaint Ratio compares insurers with 4,500 or more Arizona policies in force. The publication lists 104 insurers writing approximately 95 percent of all private passenger, homeowners and dwelling fire insurance in Arizona.
Mobile Homeowner Premium Comparison Survey
The Mobile Homeowner Premium Comparison Survey is based on insurance company rates in effect as of June 15, 1998 for a double-wide or a single-wide mobile home located in Arizona in areas having a high concentration of mobile homes. The insurance companies quoted their annual premiums based on mobile home hypotheticals developed by the Department.
According to Cohen, “the Department publishes the mobile homeowner’s comparison annually to provide consumers with information identifying insurance companies selling mobile homeowner’s insurance and the premiums they charge. The actual premium charged by these insurers will depend upon a number of variables and individual characteristics. Further, some insureds may be eligible for insurance company discounts depending upon their particular risks.”
Cohen indicated that the release of the updated premium comparison is in response to consumer interest and is part of the Department’s ongoing effort to increase public awareness of the advantages of comparison shopping for insurance. “Although price is always a consideration, consumers should also carefully compare insurance coverage, claims handling, and overall service in order to obtain the best insurance coverage for their premium dollar,” Cohen stated.
Personal Lines Complaint Ratio
The complaint ratio represents the number of written complaints received by the Department per 1,000 personal lines policies each insurer had in force during the 1997 calendar year. Both the total number of in force policies and the written complaints are shown in the publication.
According to Cohen, “The complaint ratios assist consumers by providing information regarding the complaint histories of insurers in Arizona. The complaint ratios do not reflect a determination by the Department of Insurance as to whether each complaint was justified. The ratios merely represent the total number of written complaints received by the Department during 1997.”
The complaint ratios are used by the Department to identify potential problems requiring regulatory action, which might include an examination of an insurer’s business practices. The ratios help to assess an individual company’s performance over an entire year and to identify developing, long-term trends which may have a negative impact on consumers.
Cohen suggests consumers use the complaint ratio in conjunction with the Automobile, Homeowners, and Mobile Homeowner’s Premium Comparisons, published by the Department, when shopping for insurance . “When used together, these Department publications give the consumer a more complete picture of an insurer’s customer satisfaction and price,” said Cohen.
Anyone wishing to receive a copy of the Complaint Ratio or the Premium Comparisons may obtain these publications by visiting our web page or calling or writing to us at:
Consumer Assistance Arizona Department of Insurance
2910 N. 44th Street, Suite 210
Phoenix, Arizona 85018
(602) 912-8444 (Phoenix)
(800) 325-2548 (Statewide)
(520) 628-6370 (Tucson)