Oregon Insurance Agents and Agencies, 1998

Transcription

1 Oregon Insurance Agents and Agencies, 1998 June 1999

2 Oregon Insurance Agents and Agencies, 1998 Department of Consumer & Business Services Director, Mike Greenfield Insurance Division Administrator, Nancy Ellison Information Management Division Administrator, Dan Adelman Research & Analysis Section Manager, Ed Bissell Assistant Manager, Kathy Thomas Research Analyst, Joe Miles Research Analyst, Frank Kenny June 1999 In compliance with the Americans with Disabilities Act (ADA), this publication is available in alternative formats by calling (503) (V/TTY). The information in this report is in the public domain and may be reprinted without permission. Visit the DCBS Web site at: Information Management Division 350 Winter St. NE, Room 300 Salem, Oregon (503)

3 Table of contents Introduction Highlights... 1 License categories... 2 Agent (or agency)... 2 Adjuster... 2 Consultant... 2 License classes... 2 Agent and agency license classes... 2 Adjuster and consultant license classes... 3 Licensing requirements... 3 Licensed individuals... 4 Licensed agents... 4 Agents license class trends... 5 Licensed adjusters... 5 Composition of adjusters license classes... 6 Licensed consultants... 6 Composition of consultants license classes... 6 Licensed firms... 7 Firms licensed as agencies... 7 Agency license class trends... 7 Firms licensed as adjusters... 7 License classes for firms licensed as adjusters... 7 Firms licensed as consultants... 8 License classes for firms licensed as consultants... 8 Figures 1. Distribution of resident Oregon insurance agents by county, as of December 31, Number of agents licensed in general lines, health, and life license classes at year s end for 1994 through Number of licensees in lender's property and credit involuntary unemployment insurance (IUI) subclasses at year s end for 1994 through Number of licensees in motor vehicle subclasses at year s end for 1994 through Number of variable annuity endorsements at year s end for 1994 through Distribution of resident Oregon independent insurance adjusters, by county, as of December 31, Distribution of resident Oregon insurance consultants, by county, as of December 31, Distribution of resident Oregon insurance agencies, by county, as of December 31, Number of firms licensed for lender's property insurance and credit involuntary unemployment insurance (IUI) at year's end for 1994 through Number of firms licensed as insurance adjusters and firms licensed as consultants at year s end for 1994 through Distribution of Oregon firms licensed as insurance adjusters, by county, as of December 31, Distribution of Oregon firms licensed as insurance consultants, by county, as of December 31,

4 Appendices Appendix A - Individuals Table A1. Number of agents Table A2. Number of adjusters Table A3. Number of consultants...13 Table A4. Agent license classes by county Table A5. Adjuster and consultant license classes by county Table A6. License class trends Table A7. Agent license class combinations Table A8. Adjuster license class combinations Table A9. Consultant license class combinations Appendix B - Firms Table B1. Number of agencies Table B2. Number of adjuster firms Table B3. Number of consultant firms Table B4. Agency license classes, subclasses, and endorsements Table B5. Adjuster and consultant license classes for firms by county Table B6. License class trends for firms Table B7. Agency license class combinations Table B8. Adjuster license class combinations for firms Table B9. Consultant license class combinations for firms... 30

5 Introduction Oregon law requires that any person acting in the capacity of an insurance agent, adjuster, or consultant regarding Oregon risks must be licensed to do so by the Insurance Division of the Department of Consumer and Business Services. The capacity in which the person is licensed to act constitutes a license category. A person may be licensed in more than one category. The license specifies each license category in which the licensee may engage. For each category, the license also specifies the classes and subclasses of insurance in which the licensee may engage. The Insurance Division may license a firm or corporation to transact business in any license category and license class or subclass for which the firm or corporation employs an individual licensed for that category and class. (Hereinafter, firm shall mean either a firm or corporation.) This report defines each of the three license categories and briefly describes licensing requirements. It also provides detailed information about the distribution throughout the state of individuals and firms licensed to do business in each category and class or subclass of insurance business. The appendix tables are designed to provide quick answers to questions frequently asked the Insurance Division s Licensing Section and to serve as a source of management information about licensing activities and trends. Appendix A focuses on licensed individuals and Appendix B focuses on licensed firms Highlights At year s end, there were 32,544 insurance agents, 819 independent insurance adjusters, and 326 insurance consultants licensed in Oregon. Fifty-three percent of the agents, 57 percent of the adjusters, and 97 percent of the consultants were licensed as Oregon residents. At year s end, Multnomah County accounted for 32 percent of all resident agents, 40 percent of all resident adjusters, and 43 percent of all resident consultants licensed in Oregon. At year s end, 14,325 agents were licensed for general lines, 19,235 for health, and 20,198 for life. At year s end, there were 5,920 insurance agencies licensed in Oregon, of which 45 percent were located in Oregon. At year s end, there were 108 firms licensed as insurance adjusters and 119 licensed as insurance consultants in Oregon. 1

6 License Categories During 1998 there were three valid license categories for individuals or firms: agent (or agency), adjuster, and consultant. Each is described below. Agent (or agency) An insurance agent is a solicitor or producer of insurance business. In general, a person may not act as an insurance agent in Oregon with respect to domestic risks unless that person is currently licensed by the Insurance Division to do so. The person must also be appointed by the insurer for whom the person acts as agent, unless that person is a surplus lines licensee placing insurance with an eligible surplus lines insurer. Except in some cases involving group policies, an insurance agent is considered an agent of the insurer issuing the policy and not an agent of the insured. Adjuster A claims adjuster is someone who obtains and analyzes information about an insurance claim and determines the extent of the insurer s obligation under the insurance policy. There are several types of adjusters. Most insurance companies employ staff adjusters who represent the company in settling claims. Insurance agents often perform some adjusting functions on claims, and they are sometimes given authority by the insurer to settle claims. Independent adjusters are independent contractors who offer their claims adjusting services to insurers for a fee. Public adjusters represent insureds in the claims adjusting process, usually for a percentage of the settlement. The Insurance Division licenses only independent adjusters and public adjusters. Consultant An insurance consultant is a person who sells insurance advice for compensation other than the commission from the sale of insurance. In general, a person may not act as an insurance consultant in Oregon without first obtaining a license to do so from the Insurance Division. However, attorneys, public accountants, and most financial institutions are exempt from consultant licensing requirements if rendering services in the performance of their professional duties as authorized by law. Persons giving educational seminars, actuaries engaged in establishing actuarial standards, and consultants who offer their services only to insurance companies and agents are also exempt. License Classes Agent and agency license classes There are three license classes for agents and agencies: general lines, life, and health. Each class encompasses a broad range of insurance products. An agent or agency may be licensed in a subclass to sell a particular product without having to be licensed for the entire class to which that product belongs. Another licensing device is an endorsement on a license class, which expands the capacity in which the licensee may do business within that class. The following outline shows the subclasses and endorsements related to each license class and provides a brief explanation of each: I. General lines for property, casualty, marine and transportation, and surety insurance. A. General lines subclasses: 1. Baggage (and trip cancellation and trip interruption) for insurance of personal effects in connection with travel and for reimbursement of travel expense in connection with travel emergencies. This subclass is available only to salaried affiliates of a general lines agent or to those in certain positions in the transportation or travel business as specified in the Insurance Code. 2. Credit involuntary unemployment (Credit IUI) for insurance against the inability of a debtor to pay obligations as a result of involuntary unemployment. 3. Credit for insurance against the loss or damage from failure of a debtor to pay obligations to the insured. 4. Lender s property for insurance on the personal property of a debtor to secure the repayment of a loan. 5. Livestock for insurance against loss of, damage to, or death of domestic animals. 6. Mortgage for insurance of private financial institutions against loss from the borrower s default on a mortgage loan. 7. Motor vehicle mechanical breakdown for insurance against loss arising from mechanical failure or breakdown of a motor vehicle part or component. 8. Motor vehicle physical damage for insurance against the loss of or damage to a motor vehicle designed for highway use. 2

7 9. Title for insurance against losses resulting from a defective title to land and improvements. B. Endorsements on the general lines class: 1. Surplus lines agent for the party (usually an agency) posting the $50,000 bond for placing insurance with eligible surplus lines insurers. 2. Surplus lines signatory for an agent with authority to place surplus lines coverage. (Not an option for agencies.) II. Life for insurance on the life of the insured. A. Life subclass: 1. Credit life for insurance on the life of a debtor in connection with a specific loan. B. Endorsement on the life class: 1. Variable annuity for selling annuities that vary in value with the value of investments in which the premiums are placed. III. Health for individual or group health insurance. A. Health subclasses: 1. Credit health for insurance to make payments on a loan while the borrower is unable to do so due to disability as defined in the policy. 2. Travel ticket health for sale of limitedduration personal accident insurance covering the risks of travel. This subclass is available only to salaried employees of a health insurance agent or to those in certain positions in the transportation or travel business as specified in the Insurance Code. In addition to the endorsements listed above, three endorsements apply to any of the three license classes: managing general agent, intermediary broker and intermediary manager. 1. Managing general agent for the person who binds reinsurance or manages all or part of the insurance business of the insurer; and who, separately or with affiliates, produces and underwrites an amount of insurance specified by statute; except that a person who otherwise meets the definition of a managing general agent but does not negotiate reinsurance for the insurer is not required to be licensed unless the person adjusts or pays claims in excess of an amount set by the department. An employee of an insurer does not need a license to act as a managing general agent for that insurer. 2. Intermediary broker for the person who solicits, negotiates, or places reinsurance for an insurer, but does not have authority to bind reinsurance for the insurer. 3. Intermediary manager for the person who works for the reinsurer and either has the authority to bind the reinsurer or manages all or a part of the reinsurer s reinsurance business and acts as an agent for the reinsurer. Adjuster and consultant license classes An adjuster may be licensed in either health or general lines or both. A consultant may be licensed in any combination of life, health, and general lines classes. There are no subclasses or endorsements associated with adjuster or consultant license classes. Licensing Requirements An applicant for a license as an agent, adjuster, or consultant must provide the Insurance Division s Licensing Section with information about his or her occupational background, insurance experience, any criminal convictions or indictments, judgments against the applicant for fraud, previously suspended or revoked occupational or professional licenses, and debts claimed against the applicant by insurers or agents. The applicant must also state the portion of time to be devoted to the insurance business, all business addresses and assumed business names to be used, and class or classes of insurance business to be transacted under the license. The applicant s fingerprints are also required. If the applicant is a firm or corporation, the applicant must also provide names of all members, officers, and directors. A corporation must also state the name of 3

8 each stockholder who owns more than 10 percent of any equity security and the name of each individual who will transact business under the license. Besides being subject to the other licensing requirements stated here, insurance consultants and managing general agents must also carry errors and omissions insurance coverage in an amount specified by the department. Preexamination training is required of resident applicants for general lines, life, and health licenses. Some applicants may be exempt from this requirement if they have specific insurance experience or an industry-related designation. License class endorsements involve additional requirements. For example, a variable annuity endorsement requires proof of having passed a National Association of Securities Dealers examination approved by the department, and a surplus lines signatory endorsement requires passing a surplus lines examination. The Insurance Division may issue a resident license to a person who is an Oregon resident or who, if not a resident, has a place of business in Oregon. The division may issue a nonresident license to a person who is not a resident of Oregon and is licensed in another state. Under reciprocal agreements with other states and Canadian provinces, the department may waive, for a nonresident applicant, any of Oregon s licensing requirements certified to have been met in the applicant s home state or province. An original license is valid for one year, and each renewal is valid for two years. The fee for either an original application or a license renewal is $45 per license category, regardless of how many license classes, subclasses, or endorsements are involved. As a requirement for renewal, an insurance agent licensed for life, health, or general lines must complete at least 24 hours of continuing education per year for the first five years and 12 hours per year after that. Requirements for continuing education now include courses in ethics and the Oregon specific insurance code. For any given two-year renewal period, an agent may satisfy this requirement at any time during the period as long as the requisite yearly average is achieved for those two years. The requirement is only 12 hours in any year for those with a Chartered Property and Casualty Underwriter (CPCU) or Chartered Life Underwriter (CLU) designation. Licensed Individuals Licensed agents As of December 31, 1998, there were 32,544 people licensed as Oregon insurance agents, of whom 17,186 (53 percent) were located in Oregon and 15,358 (47 percent) were located out of state. The total number of licensed agents grew by 11.3 percent during 1998, with the nonresident component increasing by 23.7 percent compared to only 2.1 percent for residents. (See Appendix Table A1). The reason for the high number of nonresident agents is that an agent must have an Oregon license to sell any policy that includes coverage for an Oregon risk. Many corporations based outside the state have branches or subsidiaries in Oregon that are covered by company-wide policies (group health insurance policies, for example). Every Oregon county has at least a few insurance agents, with the number ranging from only four in Sherman County to 5,453 in Multnomah County. Over half of Oregon s resident agents are located in the Portland area s Multnomah, Washington, or Clackamas counties. (See Figure 1 and Appendix Table A1.) Figure 1. Distribution of resident Oregon insurance agents by county, as of December 31, 1998 All other counties 28% Marion 8% Clackamas 9% Lane 11% Multnomah 32% Washington 12% Source: IMD, Department of Consumer & Business Services (2/99). 4

9 Agents license class trends In the four years ending December 31, 1998, the number of licensed agents grew 37 percent for the general lines class, 30 percent for the health class, and 30 percent for the life class. Stricter enforcement of nonresident agent licensing requirements has contributed to growth in all three classes. The division s emphasis on licensing customer service representatives of Property and Casualty agencies has also contributed to the growth in general lines licenses. Figure 2 shows the number of agents licensed in each class at the end of each calendar year from 1994 through The number of licensees has been growing rapidly for the last few years for several subclasses as the Agent Licensing Section has continued efforts to license individuals selling insurance as an adjunct to another line of business. Figure 3 illustrates the rapid growth in lender s property insurance and credit involuntary unemployment insurance (IUI) subclass licenses in 1995 through Nearly all of the growth in the lender s property insurance subclass is in auto dealerships. Credit IUI was a new subclass as of In 1992, the division added motor vehicle mechanical breakdown as a general lines subclass. Figure 4 shows steady, rapid growth in this subclass since 1994, as well as substantial growth in the motor vehicle physical damage subclass during the same period. Figure 2. Number of agents licensed in general lines, health, and life license classes at year s end for 1994 through ,000 20,000 15,000 10,000 5, ,502 16,019 17,264 18,607 20,198 14,851 15,245 16,352 17,650 19,235 10,420 10,798 11,467 12,534 14,325 Life Health General lines Source: IMD, Department of Consumer & Business Services (2/99). Small employer health has been discontinued as an endorsement. The number of agents in that subclass should go to zero next year. Licensed adjusters At the end of 1998, there were 819 independent insurance adjusters licensed in Oregon. Fifty-seven percent of those were Oregon residents and 43 percent were nonresidents. (See Appendix Table A2) Figure 3. Number of licensees in lender s property and credit involuntary unemployment (IUI) subclasses at year s end for 1994 through Figure 4. Number of licensees in motor vehicle subclasses at year s end for 1994 through Credit IUI Lender s property 0 Mechanical breakdow n Physical damage Source: IMD, Department of Consumer & Business Services (2/99). Source: IMD, Department of Consumer & Business Services (2/99). 5

10 Multnomah County, with 189 adjusters, accounted for 40 percent of all resident adjusters, equal to their share at the end of The top five counties accounted for 78 percent of all resident adjusters. Eleven of Oregon s 36 counties had no adjusters and another six had only one apiece. (See Figure 6 and Appendix Table A2.) Composition of adjusters license classes The adjuster category includes only two license classes health and general lines and no subclasses or 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Figure 5. Number of variable annuity endorsements at year s end for 1994 through ,933 5,388 6,164 7,023 7,833 endorsements. Seven hundred ninety-eight of the 819 adjusters licensed as of December 31, 1998 were licensed for general lines only. Twenty were licensed for health only and one for both general lines and health. (See Appendix Table A8.) Licensed consultants Licensing of insurance consultants began in At the end of 1998 there were 326 licensed consultants up eight percent from a year earlier. All but nine of the consultants were Oregon residents. Multnomah County, with 136 consultants, accounted for 42 percent of all consultants during Fourteen counties had no consultants and six others had only one apiece. (See Figure 7 and Appendix Table A3.) Composition of consultants license classes All three license classes life, health, and general lines are available to consultants; but there are no subclasses or endorsements for consultants. At the end of 1998, there were 252 consultants licensed for life, 259 for health, and 138 for general lines. (See Appendix Table A5.) Most consultants were licensed in multiple classes. Two hundred forty-nine (76 percent) were licensed for both life and health. Seventy-one of those were also licensed for general lines. (See Appendix Table A9.) - Variable annuities Source: IMD, Department of Consumer & Business Services (2/99). Figure 6. Distribution of resident Oregon independent insurance adjusters, by county, as of December 31, 1998 All other counties 22% Marion 8% Multnomah 40% Figure 7. Distribution of resident Oregon insurance consultants, by county, as of December 31, 1998 All other counties 26% Clackamas 6% Multnomah 42% Lane 8% Clackamas 9% Washington 13% Washington 7% Marion 7% Lane 12% Source: IMD, Department of Consumer & Business Services (2/99). Source: IMD, Department of Consumer & Business Services (2/99). 6

11 Licensed Firms Firms licensed as agencies At the end of 1998 there were 5,920 firms licensed in Oregon as insurance agencies, of which 45 percent were located in Oregon and 55 percent were located out of state. Every county had at least one agency, with the number ranging from two for Gilliam and Sherman to 704 for Multnomah. (See Appendix Table B1.) Figure 8 shows the distribution of resident agencies among Oregon counties. As one might expect, the ratio of agents to agencies tends to decline as population density declines. Multnomah County has an agent-to-agency ratio of 7.7. Lane, Washington, Marion, and Clackamas Counties combined have a ratio of 6.6. All other counties combined have a ratio of 5.9. Statewide, the agent-toagency ratio was 6.5 during Agency license class trends The number of firms licensed for general lines grew by 3 percent in 1998, while the number licensed for life and the number licensed for health were both up 4 percent. (See Appendix Table B6.) The number of agencies licensed for lender s property insurance increased from 73 to 103. Nearly all of the new firms in this subclass were auto dealerships. Credit involuntary unemployment was a new subclass as of 1995 and the number of firms offering this coverage has grown to 42 in the last three years. (See Figure 9 and Appendix Table B6.) Firms licensed as adjusters The number of licensed independent insurance adjusters in Oregon increased 4 percent in 1998, from 104 to 108 (see Figure 10 and Appendix Table B2). Seventyone of the 108 firms were resident firms. Only 18 of Oregon s 36 counties had firms licensed as adjusters as of December 31, 1998, and seven of those had only one apiece. Multnomah County had 23. Washington County had eight. No other county had more than seven. (See Figure 11 and Appendix Table B2.) Figure 8. Distribution of resident Oregon insurance agencies, by county, as of December 31, 1998 A ll other counties 34% Clackamas 9% Marion 9% Multnomah 27% Lane 9% Washington 12% Source: IMD, Department of Consumer & Business Services (2/99) Figure 9. Number of firms licensed for lender s property insurance and credit IUI at year s end for 1994 through Lender s property Credit IUI Source: IMD, Department of Consumer & Business Services (2/99) License classes for firms licensed as adjusters Adjusters may only be licensed for health or general lines classes of insurance. Of the 108 firms licensed as adjusters in Oregon, 104 were licensed for general lines and four for health. (See Appendix Tables B5 and B8.) 7

12 Firms licensed as consultants As mentioned above, Oregon began licensing insurance consultants in At the end of 1998, there were 119 firms licensed as consultants an increase of 10 percent over the 108 a year earlier (see Figure 10 and Appendix Table B3). Only three of the 119 firms were from out of state. Only 20 Oregon counties had firms licensed as consultants. Multnomah County topped the list with 50 (42 percent of the total). Lane County was a distant second with 10. (See Figure 12 and Appendix Table B3.) License classes for firms licensed as consultants Most of the 119 consultant firms were licensed in more than one of the three allowable classes life, health, and general lines. Fifty were licensed for all three and another 51 were licensed for life and health only. (See Appendix Table B9.) Figure 10. Number of firms licensed as insurance adjusters and firms licensed as consultants at year's end for 1994 through Adjusters Consultants 119 Source: IMD, Department of Consumer & Business Services (2/99). Figure 11. Distribution of Oregon firms licensed as insurance adjusters, by county, as of December 31, 1998 Figure 12. Distribution of Oregon firms licensed as insurance consultants, by county, as of December 31, Multnomah Washington Marion Clackamas Deschutes Lane All others 5 0 Multnomah Lane Washington Clackamas Deschutes Marion All others Source: IMD, Department of Consumer & Business Services (2/99). Source: IMD, Department of Consumer & Business Services (2/99). 8

13 Tables 9

14 Table A1. Number of agents Number of insurance agents with active Oregon licenses at year s end for 1994 through County Number Number Change Number Change Number Change Number Change Baker % 78 3% 76-3% 74-3% Benton % 222 7% 224 1% 222-1% Clackamas 1,376 1,412 3% 1,369-3% 1,384 1% 1,499 8% Clatsop % % 110-3% 108-2% Columbia % 93 0% 85-9% 89 5% Coos % 223 9% 229 3% 229 0% Crook % 26-24% 27 4% 29 7% Curry % 58 0% 54-7% 57 6% Deschutes % 577 9% 600 4% 652 9% Douglas % 338 7% 361 7% 362 0% Gilliam 6 6 0% 7 17% 7 0% 7 0% Grant % 26-4% 22-15% 22 0% Harney % 27 13% 26-4% 28 8% Hood River % 46-8% 48 4% 48 0% Jackson % 830 7% 835 1% 869 4% Jefferson % 39 22% 41 5% 39-5% Josephine % 306 4% 315 3% 321 2% Klamath % 180 1% 188 4% 185-2% Lake % 23 15% 24 4% 19-21% Lane 1,702 1,727 1% 1,795 4% 1,792 0% 1,870 4% Lincoln % 147 7% 137-7% 130-5% Linn % 333-5% 349 5% 345-1% Malheur % 103-6% 101-2% 103 2% Marion 1,438 1,401-3% 1,434 2% 1,395-3% 1,435 3% Morrow % 21 0% 21 0% 21 0% Multnomah 5,370 5,395 0% 5,480 2% 5,472 0% 5,453 0% Polk % 91-1% % 102 0% Sherman 3 3 0% 4 33% 4 0% 4 0% Tillamook % 59 4% 51-14% 51 0% Umatilla % 254-1% 253 0% 249-2% Union % 116 4% 127 9% 136 7% Wallowa % 33 0% 32-3% 31-3% Wasco % 91 1% 93 2% % Washington 1,781 1,854 4% 1,908 3% 2,008 5% 2,050 2% Wheeler 7 7 0% 6-14% 6 0% 6 0% Yamhill % 244 7% 232-5% 236 2% All OR counties 16,133 16,310 1% 16,700 2% 16,831 1% 17,186 2% Out of state 8,039 8,813 10% 10,320 17% 12,419 20% 15,358 24% Total 24,172 25,123 4% 27,020 8% 29,250 8% 32,544 11% 11

15 Table A2. Number of adjusters Number of insurance adjusters with active Oregon licenses at year s end for 1994 through County Number Number Change Number Change Number Change Number Change Baker 2 2 0% 2 0% 2 0% 2 0% Benton % 1-50% 2 100% 2 0% Clackamas % 41 14% 44 7% 42-5% Clatsop 2 2 0% 4 100% 5 25% 2-60% Columbia 1 1 0% 1 0% 1 0% 1 0% Coos 6 6 0% 6 0% 6 0% 5-17% Crook 1 1 0% 1 0% 1 0% 1 0% Curry 1 1 0% 1 0% 1 0% 0-100% Deschutes % 16 14% 17 6% 15-12% Douglas % 10 0% 7-30% 7 0% Hood River % 0 0% 0 0% 0 0% Jackson % 19-17% 23 21% 24 4% Josephine % 6 50% 8 33% 8 0% Klamath % 2-33% 3 50% 4 33% Lane % 36-5% 33-8% 36 9% Lincoln 0 2 NA 2 0% 2 0% 2 0% Linn % 7 0% 7 0% 6-14% Malheur 0 0 0% 0 0% 0 0% 1 NA Marion % 35 6% 36 3% 38 6% Multnomah % 182-4% 191 5% 189-1% Polk 1 1 0% 1 0% 2 100% 1-50% Tillamook 1 1 0% 1 0% 1 0% 1 0% Umatilla % 11-8% 13 18% 9-31% Union 1 1 0% 1 0% 2 100% 2 0% Wallowa 0 0 0% 0 0% 0 0% 1 NA Washington % 64 0% 66 3% 61-8% Yamhill 7 7 0% 8 14% 6-25% 7 17% All OR counties % 458-1% 479 5% 467-3% Out of state % % % % Total % % 735 8% % 12

16 Table A3. Number of consultants Number of insurance consultants with active Oregon licenses at year s end for 1994 through County Number Number Change Number Change Number Change Number Change Benton 6 6 0% 6 0% 6 0% 6 0% Clackamas % 18 29% 22 22% 20-9% Clatsop % 4 0% 4 0% 4 0% Columbia % 3 50% 1-67% 1 0% Coos 0 0 0% 0 0% 1 NA 1 0% Deschutes % 10 25% 13 30% 18 38% Douglas 0 0 0% 4 NA 4 0% 4 0% Hood River 1 1 0% 2 100% 2 0% 2 0% Jackson % 12-8% 12 0% 13 8% Jefferson 1 1 0% 0-100% 1 NA 1 0% Josephine 1 1 0% 1 0% 1 0% 1 0% Klamath 7 7 0% 7 0% 7 0% 7 0% Lane % 36 3% 40 11% 40 0% Linn 9 9 0% 9 0% 9 0% 9 0% Malheur 1 1 0% 1 0% 1 0% 1 0% Marion % 16 14% 20 25% 22 10% Multnomah % 110 4% % 136 9% Polk 1 1 0% 0-100% 0 0% 0 0% Tillamook 0 0 0% 0 0% 0 0% 1 NA Union 2 2 0% 2 0% 2 0% 3 50% Wasco 3 3 0% 3 0% 3 0% 2-33% Washington % 19 27% 22 16% 22 0% Yamhill 4 4 0% 4 0% 4 0% 3-25% All OR counties % 267 8% % 317 6% Out of state 3 3 0% 3 0% 3 0% 9 200% Total % 270 8% % 326 8% 13

17 Table A4. Agent license classes by county Count of active insurance agent license classes, by county, as of December 31, 1998 General General lines subclasses lines Credit Lender s Mot veh Mot veh County class Baggage IUI 1 Credit property Livestock Mortgage mech brk phys dam Title Baker Benton Clackamas Clatsop Columbia Coos Crook Curry Deschutes Douglas Gilliam Grant Harney Hood River Jackson Jefferson Josephine Klamath Lake Lane Lincoln Linn Malheur Marion Morrow Multnomah 2, Polk Sherman Tillamook Umatilla Union Wallowa Wasco Washington Wheeler Yamhill All OR counties 7, Out of state 7, Total 14, Credit Involuntary Unemployment Insurance Continued... 14

18 Table A4. Agent license classes by county (cont d.) Count of active insurance agent license classes, by county, as of December 31, 1998 G L endorsements Health subclasses Life subcl Life endors Interm. Surplus L Surplus L Health Credit Life Credit Variable broker All County agent signatory class health Travel class life annuity endors. 2 classes Baker Benton Clackamas ,665 Clatsop Columbia Coos Crook Curry Deschutes ,571 Douglas Gilliam Grant Harney Hood River Jackson ,096 Jefferson Josephine Klamath Lake Lane 0 2 1, , ,633 Lincoln Linn Malheur Marion ,458 Morrow Multnomah , , , ,708 Polk Sherman Tillamook Umatilla Union Wallowa Wasco Washington , , ,028 Wheeler Yamhill All OR counties ,443 2, ,675 2,694 4, ,090 Out of state 0 0 8, , , ,245 Total ,235 2, ,198 2,729 7, ,335 2 Intermediary broker is an endorsement on life, health, or general lines classes. 15

19 Table A5. Adjuster and consultant license classes by county Count of active insurance adjuster and consultant license classes, by county, as of December 31, 1998 Adjuster Adjuster Adjuster Consultant Consultant Consultant Consultant County Health Gen Lines total Health Gen Lines Life total Baker Benton Clackamas Clatsop Columbia Coos Crook Curry Deschutes Douglas Hood River Jackson Jefferson Josephine Klamath Lane Lincoln Linn Malheur Marion Multnomah Polk Tillamook Umatilla Union Wallowa Wasco Washington Yamhill All OR counties Out of state Total

20 Table A6. License class trends Number of active Oregon license classes for insurance agents, adjusters, and consultants at year s end for License class, subclass, or endorsement Number Number Change Number Change Number Change Number Change Agents: General Lines 10,420 10,798 4% 11,467 6% 12,534 9% 14,325 14% Baggage % % 411-4% 418 2% Credit IUI NA % % % Credit % 66 35% 75 14% 91 21% Lender s property % % % % Livestock 2 2 0% 1-50% 1 0% 1 0% Mortgage % 26-26% 31 19% 28-10% Motor Veh Mech Breakdn % % % 836 5% Motor Veh Phys Damage % % % 564-1% Title % 71-5% 66-7% 66 0% Surplus Agent % 8-27% 9 13% 9 0% Surplus Signatory % 75-4% 77 3% 76-1% Health 14,851 15,245 3% 16,352 7% 17,650 8% 19,235 9% Travel % % 406-5% 409 1% Credit Health 2,340 2,419 3% 2,536 5% 2,529 0% 2,711 7% Small Employer Health 3,140 3,215 2% 3,312 3% 2,330-30% % Life 15,502 16,019 3% 17,264 8% 18,607 8% 20,198 9% Credit Life 2,355 2,436 3% 2,548 5% 2,544 0% 2,729 7% Variable Annuity 4,933 5,388 9% 6,164 14% 7,023 14% 7,833 12% Intermediary Broker % 0 0% 3 NA 3 0% Adjusters: Adjuster Health % 14-22% 21 50% 21 0% Adjuster General Lines % % 715 7% % Consultants: Consultant Health % % % 259 8% Consultant Gen Lines % 114 2% % % Consultant Life % % % 252 7% 1 Credit Involuntary Unemployment Insurance. 2 Intermediary Broker is an endorsement on all three agent classes: General Lines, Health, and Life. 17

21 Table A7. Agent license class combinations Count of license class combinations of Life, Health, or General Lines for insurance agents with active Oregon licenses, by county, as of December 31, 1998 License classes Life & Health & Life, Hlth, & County Life only Health only General only Life & Health General General General All Baker Benton Clackamas ,245 Clatsop Columbia Coos Crook Curry Deschutes Douglas Gilliam Grant Harney Hood River Jackson Jefferson Josephine Klamath Lake Lane ,403 Lincoln Linn Malheur Marion ,143 Morrow Multnomah , ,697 Polk Sherman Tillamook Umatilla Union Wallowa Wasco Washington ,716 Wheeler Yamhill All OR counties ,661 5, ,005 14,023 Out of state ,588 7, ,532 15,322 Total 1, ,249 12, ,537 29,345 18

22 Table A8. Adjuster license class combinations Count of license class combinations for insurance adjusters with active Oregon licenses, by county, as of December 31, 1998 License classes Health General Health County only only & General All Baker Benton Clackamas Clatsop Columbia Coos Crook Curry Deschutes Douglas Jackson Josephine Klamath Lane Lincoln Linn Malheur Marion Multnomah Polk Tillamook Umatilla Union Wallowa Washington Yamhill All OR counties Out of state Total

23 Table A9. Consultant license class combinations Count of license class combinations for insurance consultants with active Oregon licenses, by county, as of December 31, 1998 License class combinations Life & Health & Life, H, & County Life only Health only General only Life &Health General General General All Benton Clackamas Clatsop Columbia Coos Deschutes Douglas Hood River Jackson Jefferson Josephine Klamath Lane Linn Malheur Marion Multnomah Tillamook Union Wasco Washington Yamhill All OR counties Out of state Total

24 Table B1. Number of agencies Number of insurance agencies with active Oregon licenses at year s end for 1994 through County Number Number Change Number Change Number Change Number Change Baker % 13-7% 11-15% 15 36% Benton % 39 0% 41 5% 38-7% Clackamas % 242 2% 252 4% 249-1% Clatsop % 25 4% 22-12% 23 5% Columbia % 21-5% 23 10% 20-13% Coos % 49 2% 50 2% 51 2% Crook 7 7 0% 8 14% 9 13% 9 0% Curry % 13 0% 15 15% 18 20% Deschutes % 97 3% 102 5% 102 0% Douglas % 56 4% 58 4% 59 2% Gilliam 2 2 0% 2 0% 2 0% 2 0% Grant % 6 0% 5-17% 5 0% Harney 8 8 0% 8 0% 8 0% 9 13% Hood River % 13-7% 13 0% 12-8% Jackson % 115 2% 118 3% 116-2% Jefferson % 8 0% 8 0% 7-13% Josephine % 50 2% 48-4% 50 4% Klamath % 37-8% 39 5% 37-5% Lake 7 7 0% 8 14% 6-25% 6 0% Lane % 248 0% 243-2% 251 3% Lincoln % 31 7% 28-10% 27-4% Linn % 70-1% 66-6% 61-8% Malheur % 23-8% 20-13% 21 5% Marion % 238 0% 251 5% 235-6% Morrow 7 7 0% 7 0% 6-14% 6 0% Multnomah % 703 1% 712 1% 704-1% Polk % 21 5% 22 5% 21-5% Sherman 2 2 0% 3 50% 2-33% 2 0% Tillamook % 15 0% 16 7% 14-13% Umatilla % 52 0% 54 4% 52-4% Union % 22 10% 25 14% 24-4% Wallowa % 11 0% 11 0% 11 0% Wasco % 26 4% 27 4% 29 7% Washington % 285 1% 296 4% 310 5% Wheeler 3 3 0% 3 0% 3 0% 3 0% Yamhill % 54 0% 48-11% 53 10% All OR counties 2,572 2,602 1% 2,622 1% 2,660 1% 2,652 0% Out of state 2,430 2,667 10% 2,931 10% 3,111 6% 3,268 5% Total 5,002 5,269 5% 5,553 5% 5,771 4% 5,920 3% 21

25 Table B2. Number of adjuster firms Number of firms with active independent adjuster licenses in Oregon at year s end for County Number Number Change Number Change Number Change Number Change Baker 1 1 0% 1 0% 1 0% 1 0% Clackamas % 5 25% 6 20% 6 0% Clatsop 0 0 0% 1 NA 1 0% 0-100% Coos 1 1 0% 2 100% 2 0% 2 0% Curry 1 1 0% 1 0% 1 0% 1 0% Deschutes % 3 0% 4 33% 4 0% Douglas 1 1 0% 1 0% 1 0% 1 0% Jackson 3 3 0% 3 0% 3 0% 3 0% Jefferson 1 1 0% 1 0% 1 0% 1 0% Josephine 1 1 0% 2 100% 2 0% 2 0% Klamath 1 1 0% 1 0% 2 100% 2 0% Lane % 3 0% 4 33% 4 0% Lincoln 0 1 NA 1 0% 1 0% 1 0% Linn 0 0 0% 0 0% 1 NA 1 0% Marion 2 2 0% 5 150% 6 20% 7 17% Multnomah % 24-8% 27 13% 23-15% Umatilla 3 3 0% 3 0% 3 0% 3 0% Washington % 7 0% 8 14% 8 0% Yamhill 1 1 0% 1 0% 1 0% 1 0% All OR counties % 65 8% 75 15% 71-5% Out of state % 23 44% 29 26% 37 28% Total % 88 16% % 108 4% 22

26 Table B3. Number of consultant firms Number of firms with active Oregon insurance consultant licenses at year s end for County Number Number Change Number Change Number Change Number Change Benton 2 2 0% 2 0% 2 0% 2 0% Clackamas 5 5 0% 7 40% 7 0% 8 14% Clatsop 1 1 0% 1 0% 1 0% 1 0% Columbia 0 1 NA 1 0% 1 0% 1 0% Coos 0 0 0% 0 0% 1 NA 1 0% Deschutes 3 3 0% 4 33% 6 50% 8 33% Douglas 0 0 0% 2 NA 2 0% 2 0% Jackson % 4 33% 4 0% 3-25% Jefferson 1 1 0% 0-100% 1 NA 1 0% Klamath 2 2 0% 2 0% 2 0% 3 50% Lane % 11-8% 10-9% 10 0% Linn 4 4 0% 4 0% 4 0% 4 0% Malheur 1 1 0% 1 0% 1 0% 1 0% Marion % 6 50% 7 17% 7 0% Multnomah % 45 13% 45 0% 50 11% Tillamook 0 0 0% 0 0% 0 0% 1 NA Union 0 0 0% 0 0% 0 0% 1 NA Wasco 2 2 0% 2 0% 2 0% 2 0% Washington % 6-14% 9 50% 9 0% Yamhill 2 2 0% 1-50% 1 0% 1 0% All OR counties % 99 10% 106 7% 116 9% Out of state 2 2 0% 2 0% 2 0% 3 50% Total % % 108 7% % 23

27 Table B4. Agency license classes, subclasses, and endorsements Count of active Oregon insurance agency license classes, subclasses, and endorsements, by county, as of December 31, 1998 General General Lines subclasses Lines Bag- Credit Lender s Mort- Mot veh Mot veh County class gage IUI Credit property gage mech brk phys dam Title Baker Benton Clackamas Clatsop Columbia Coos Crook Curry Deschutes Douglas Gilliam Grant Harney Hood River Jackson Jefferson Josephine Klamath Lake Lane Lincoln Linn Malheur Marion Morrow Multnomah Polk Sherman Tillamook Umatilla Union Wallowa Wasco Washington Wheeler Yamhill All OR counties 1, Out of state 2, Total 3, Continued... 24

28 Table B4. Agency license classes, subclasses, & endorsements (cont.) Count of active Oregon insurance agency license classes, subclasses, and endorsements, by county, as of December 31, 1998 G L endors Health subclasses Life subcl Life endors Interm. Managing Surplus L Health Credit Life Credit Variable Broker Gen Agt County Agent class Health Travel class Life Annuity endors 1 endors 1 Baker Benton Clackamas Clatsop Columbia Coos Crook Curry Deschutes Douglas Gilliam Grant Harney Hood River Jackson Jefferson Josephine Klamath Lake Lane Lincoln Linn Malheur Marion Morrow Multnomah Polk Sherman Tillamook Umatilla Union Wallowa Wasco Washington Wheeler Yamhill All OR counties 38 1, , Out of state 0 1, , Total 38 2, , Intermediary broker and managing general agent are endorsements on Life, Health, or General Lines classes. 25

29 Table B5. Adjuster and consultant license classes for firms by county Count of active insurance adjuster and consultant license classes for firms, by county, as of December 31, 1998 Adjuster Adjuster Adjuster Consultant Consultant Consultant Consultant County Gen Lines Health total Gen Lines Health Life total Baker Benton Clackamas Clatsop Columbia Coos Curry Deschutes Douglas Jackson Jefferson Josephine Klamath Lane Lincoln Linn Malheur Marion Multnomah Tillamook Union Umatilla Wasco Washington Yamhill All OR counties Out of state Total Source: Department of Consumer & Business Services (2/1/99) 26

30 Table B6. License class trends for firms Number of active Oregon license classes, subclasses, and endorsements for insurance agencies and related firms at year s end for 1994 through 1998 License class, subclass, or endorsement Number Number Change Number Change Number Change Number Change Agencies: General Lines 2,916 3,040 4% 3,204 5% 3,385 6% 3,489 3% Baggage % 232 8% 248 7% 239-4% Credit IUI % 4 NA % 42 40% Credit % 12 20% 12 0% 16 33% Lender s Property % 43 10% 73 70% % Livestock % 0 0% 0 0% 0 0% Mortgage % 3-25% 3 0% 3 0% Motor Veh Mech Breakdn % 111 9% % 132 6% Motor Veh Phys Damage % 118 6% 120 2% 121 1% Title % 48-14% 44-8% 43-2% Surplus Agent % 42-14% 41-2% 38-7% Health 2,441 2,569 5% 2,702 5% 2,835 5% 2,939 4% Credit Health % 550 1% 548 0% 550 0% Travel % 233 6% 241 3% 233-3% Life 2,567 2,723 6% 2,895 6% 3,033 5% 3,146 4% Credit Life % 551 0% 546-1% 551 1% Variable Annuity % 622 8% 646 4% 667 3% Managing Gen l Agent % 27 80% 25-7% 30 20% Intermediary Broker % 2 NA 2 0% 2 0% Adjusters: Adjuster General Lines % 85 20% 99 16% 104 5% Adjuster Health 5 5 0% 3-40% 5 67% 4-20% Consultants: Consultant Gen l Lines % 53 6% 60 13% 67 12% Consultant Health % 86 13% 94 9% 102 9% Consultant Life % 85 13% 92 8% % 1 Credit Involuntary Unemployment Insurance. 2 Intermediary broker is an endorsement on all three agent classes: General Lines, Health, and Life. 27