|
By Steve Burleson, CIC, Boley-Featherston Insurance
The Alliance,
Boley-Featherston Insurance and Bituminous Insurance Companies have
entered into an agreement that allows Alliance members to
participate in the Alliance Safety Group Program and Group Dividend
Plan. It is an enhancement of the programs
that have been available to Alliance members since 1987.
What does this
mean to you?
It means that
your company may be eligible for dividends paid directly back to
you. Also, submissions to the plan will now be accepted from any
agent licensed in the State of Texas.
Dividends are
based upon the combined experience of the included lines of
coverage: building, personal property, business income, marine,
crime, general liability, pollution liability, auto liability, and
auto physical damage.
Dividends will
be calculated at 9 months and 21 months after the close of the plan
anniversary date of July 1* annually. Total dividends are the total
premiums earned less the retention premium and modified losses, and
will be paid at a uniform rate to each participant's share of the
total earned premium. All dividends will be distributed by
Bituminous directly to each participant.
The Plan is
predicated on the proposition that effective risk management can and
does reduce losses in the oil and gas industry.
The maximum
dividend available will be the appropriate percentage following:
| Total
Premium Earned |
Maximum
Dividend |
| Less than
$1,250,000 |
0% |
| $1,250,000 to
$2,500,000 |
45% |
| $2,500,000 to
$3,500,000 |
50% |
| Over $3,500,000 |
55% |
It can not be
guaranteed that any dividends can and will be paid under this Plan,
and any such dividends must be authorized by the Board of Directors
of Bituminous Insurance Companies in conformity with laws of any
state in which the policies apply and in which any similar plans are
in effect.
In developing
this Safety Group Dividend Plan, prior years of experience with
Boley-Featherston Insurance of Wichita Falls and Bryan Insurance
Agency of Graham were reviewed. Using these eligible agents, a
modest dividend of about 14% would be earned. So a participant
paying $10,000 in earned premiums would qualify for a $1,400
dividend.
With more
agents and more Alliance members participating, and loss ratios
remaining constant, the dividend could rise to 25%.
Agents which
are not contracted with Bituminous must send submissions through
Boley-Featherston Insurance. Contracted Bituminous agents will make
submissions directly to the Bituminous Association Coordinator in
Dallas.
For more
information, contact your local Bituminous agent or have your agent
contact Steve Burleson, CIC, or Tom Miller of Boley-Featherston
Insurance at 800-234-1167 or 940-723-7111 for a proposal.
This
Bituminous/Alliance Safety Group Dividend Plan is another example of
BOTTOM-LINE RESULTS from the Alliance -- Your Partner in
Business! Your Alliance membership gives you the resources to
increase revenues, cut costs, and put more money in your pocket.
|
