Doing away with carrier sub-companies

[JohnGage]

We are considering doing away with sub-companies in TAM.  All Auto Owners policies would be coded ICO & BCO as AO and the fact that the policy is written in Southern Owners wouldn't be represented in TAM.  Aside from obviously not being able to run a report of all my Southern Owners policies is there any other downside to doing this?

[Jeff Zylstra]

Several types of download issues would be the first thing that comes to mind.  Since the NAIC codes are transmitted in download, policies from Southern Owners wouldn't match the NAIC code for Auto-Owners, and they would probably all go to suspense.  I'm sure that there are other issues, however.

Out of curiosity, why are you considering this? 

[DebAmstutz]

We did that last year, and I guess everyone likes it and has no problem with it as I've not heard any complaints.

[Sherry Burrell]

Also certificates and binder will show the wrong issuing company.  We have had issues with that.

[JohnGage]

I understand the NAIC code issue.  I would move the Southern Owners NAIC code to the Auto Owners file and, I believe, download would run properly.

Currently we run 2 TAM systems, one for the main office and another for our branches.  (Why?! - good question but probably for another thread)  The carrier code lists between the systems are inconsistent.  As we prepare to start renaming carriers it came up why do we need these sub-codes anyway? 

I am aware of the potential issues with proofs and needing correct carrier name/NAIC code.  As the Sys Admin I've forward that concern to the insurance folks, not sure how comfortable they are with that.

[Alice]

Earlier this year I was asked to consolidate all the sub-companies for those that had them. We had 17 for Travelers alone. Using that as an example, I created one main code for Travelers (TRA) and added all the sub-companies under Company Addresses. As long as the NAIC code is entered for each company listed and is unique for each, there will be no download issues. The main code TRA does not have an NAIC code entered. As far as I know we don't do certs, or no one is complaining about the name not being correct. It isn't for everyone though. And it prevents data entry errors since if the users cannot figure out which company to use, they use anything almost ensuring the download will go to suspense.
The good folks in these groups helped me understand all this and it all turned out great!

[GeorgeW]

That is correct, just need to enter all the NAIC codes in the Auto Owners file.

On a different note, I seem to remember an issue of some sort with have 2 digit company codes and remember us having to go through and rename all of our 2 digit company codes to 3 digits.   Can't remember the issue, just know we had to do it. Anyone remember anything about this?

I understand the NAIC code issue.  I would move the Southern Owners NAIC code to the Auto Owners file and, I believe, download would run properly.

[Lance Bateman]

I think that was an issue either with the start of 9.x or 10.x - but I haven't seen any issues currently (we're on 10.

[Jim Jensen]

Even if fixed now, I would still avoid 2 letter company codes (use AOI instead) as the problem could easily come back - it's still dbase programming.

One other potential issue is commissions. They differ by writing company in AutoOwners. If you input the commission %'s, you'll have to use the product level to choose the commission level.

[brinkerdana]

Check with your DOI/State to determine if the insuring company must be shown on vehicle ID cards as they are here in CA.

[mblack]

Yeah ... I was just thinking Auto Id cards.  Wouldn't fly here in NY as you have to have the correct carrier listed for the barcode to match-up.  Also I know someone mentioned COI's.  If you aren't doing them, then great. If you are, you'll need the correct carrier listed.

[Jason@KiteTech]

Check with your DOI/State to determine if the insuring company must be shown on vehicle ID cards as they are here in CA.

Bingo.  The paperwork (certs, etc.) is the only hurdle in this.  All the download concerns can be addressed.  In fact, consolidation actually makes things easier from a download perspective.