FOR IMMEDIATE RELEASE: July 15, 2002

(LANSING, MI) - The Michigan Office of Financial and Insurance Services (OFIS) today released complaint ratios and statistics for insurance companies in Michigan. The complaint information is available at www.michigan.gov/ofis or by calling OFIS toll free at 877-999-6442.

"With increases in auto and home insurance premiums this year, information such as the complaint ratios and statistics can assist consumers in evaluating insurance companies," commented OFIS Commissioner Frank M. Fitzgerald. "To file a complaint, consumers can log on to the OFIS web site at www.michigan.gov/ofis or call OFIS toll free at 877-999-6442."

Complaint information can be used as a tool to help consumers choose an insurance provider, but other factors should be acknowledged when evaluating a company. Such factors are premiums charged, benefits provided by the contract, financial stability of the company, and levels of service provided. It is also important to remember that not all complaints filed result in a determination that the insurance provider acted improperly.

The OFIS insurance complaint information offers both statistics and ratios. The statistics offer overall complaint totals for type of company, type of insurance, and complaint reason. OFIS received a total of 5,903 insurance complaints during 2001. This includes 869 Blue Cross Blue Shield of Michigan complaints and 529 HMO complaints.

The insurance complaint information also offers ratios that provide information for specific Michigan insurance companies. OFIS receives thousands of complaints every year regarding the insurance industry. After responding to the complaints, the information is used to track pattern of practice and compiled into complaint ratios. Ratios are determined by dividing the dollar amount (in millions) of written premium into the number of filed complaints. (Written premium are the dollar amounts paid for insurance coverage.) The resulting ratio provides complaint information that takes into account the size of the insurance company.

The complaint ratio statistics also offer the option of additional insurance company information. By clicking on the company name, users link to the company address, company contact, and complaint reason information.

OFIS complaint information includes complaints received about the practice of using consumer credit scores to set insurance rates. Currently, this is legal in Michigan and OFIS is holding a series of public hearings to gather information. The last of six public hearings will be held in Detroit this Thursday, July 18th. For more information on this issue (including the hearings and additional opportunities to comment), call OFIS toll free at 877-999-6442 or link to credit scoring information on the OFIS web site at http://www.michigan.gov/cis/1,1607,7-154-10555_12902_15784---,00.html.

With the release of complaint statistics and ratios, consumers can be assured that their information is confidential and that no consumer names or personal information is released. The complaint information filed at OFIS and posted to the web includes complaints filed against agents offering insurance products from companies. It is important to note that complaints can have more than one complaint reason. Also, HMO information is presented as total complaint and complaint reason statistics only. Individual HMO complaint information and total complaints for the external review process are part of the OFIS HMO Consumer Guide. More information on the HMO and health insurance external review process is available at http://www.michigan.gov/cis/0,1607,7-154-10555_12902_12907---,00.html and the OFIS HMO Consumer Guide is available at http://www.michigan.gov/cis/0,1607,7-154-10555_13222_13224-34152--,00.html.

###

The Michigan Office of Financial and Insurance Services (OFIS) is responsible for the regulation of Blue Cross Blue Shield, 28 HMOs, 144 banks, 285 credit unions, almost 1,500 insurance companies, 1,583 investment advisers, 2,164 securities broker-dealers, 6,000 consumer finance lenders, 89,000 insurance agents, and 120,715 securities agents. OFIS is part of the Department of Consumer and Industry Services and is primarily fee-funded, requiring minimal public tax dollars for its regulatory and consumer assistance activities. OFIS has insurance, financial institutions and securities information available online at the OFIS web site, www.michigan.gov/ofis, or at the Michigan government home page, www.michigan.gov. All information is also available through the OFIS toll free number, (877) 999-6442.

If you would like to receive OFIS press releases electronically, please email ofis-info@michigan.gov.