State Farm insurance policy information

As the Mortgagee listed on the insurance policy, can I request that the insurance policy be cancelled?

Insurance policies are contracts between the named insured and the insurance company. These are the only parties that can initiate cancellation.

Can the mortgagee request to be the named insured on an existing insurance policy?

Changing the named insured on an insurance policy assigns the rights of that policy to another party. Assignments can only be made with insurance company permission.

What is the State Farm Privacy Policy on sharing information with mortgage companies?

Our Privacy Policy allows certain customer information to be released to third Parties for policy servicing purposes. Information can be released to a mortgagee if they are shown on the policy to protect their financial interest. If the mortgagee is not listed on the policy, information should not be released until our policyholder has requested the lender be added to their policy. However, if a mortgagee is able to properly identify themselves as a mortgagee pursuant to a typical mortgagee agreement, they have the agreement of the policyholder to receive coverage information from State Farm and be added as a mortgagee. If the Fire Associate or Agent receiving the call recognizes the caller to be a typical institutional mortgagee and the caller can provide the policyholder's name, address, and loan number, then that will meet the requirement. The same information can be shared with mortgagees whether or not there is a do not share message based on their insurable interest.

My customer and I agree that my mortgage company should be listed first, yet I see another on his policy. What should I do?

The State Farm mortgage clause is a condition of the policy that protects the financial interest of the mortgage company as its interests may appear. This means that at time of a claim, all mortgage companies listed on the policy are informed of the claim and will have their financial interest covered appropriately.

I've been in the mortgage industry for 5 years, yet am new to insurance. Where can I go for a short list of common insurance terms? Or, can you recommend an insurance dictionary?

There are many insurance dictionary's available as reference tools. Here are a few:

• Dictionary of Insurance by Lewis Davids (7th edition, 1990)
  Littlefield, Adams Quality Paperbacks
  8705 Bollman Place
  Savage, MD 20763
• Glossary of Insurance Terms (6th edition, 1990)
  Merrit Publishing
  1661 Ninth Street P.O. Box 955
  Santa Monica, CA
• Insurance Words and Their Meanings:
  A Glossary of Insurance Terms
  Rough Notes Company
  11690 Technology Drive
  P. O. Box 1990
  Carmel, IN
• Rupp's Insurance and Rick Management Glossary
  By Richard V. Rupp (2nd edition, 1996)
  NILS Publishing Company
  P. O. Box 2507
  Chatsworth, CA

What coverage does State Farm provide for a mortgage company's interest in the property?

State Farm's mortgage clause is a condition of each policy that defines a mortgage company's interests in the insured's property. The industry's coverage standard for the mortgage clause is referred to as ATIMA or "as their interests may appear.

My mortgage company is growing rapidly through acquisition. How do we get set up for electronic commerce with State Farm?

State Farm supports the electronic exchange of information through a combination of EDI Formats. To initiate the testing process, please call Karen Pflederer at (309) 994-4350.

What does State Farm consider a breakeven point for electronic payments and exchange of large quantities of information?

State Farm supports two forms of combined billing for mortgage companies who escrow funds for their customer's hazard insurance payments:

1. The "list billing method will generate a 2-part paper bill for each due date (twice each month). The mortgage company must return the paper bill to each of the State Farm Regional Operation Offices where the bill originates with the associated payment. This method is recommended if a mortgage company cannot support the electronic transmission defined below.
2. The "teleprocessed billing method is definitely recommended for most situations because your files of escrowed customer's insurance payments are only sent, electronically, to one location, State Farm Corporate Headquarters. Most mortgage companies find this is much more efficient than paper list bills.

Where do I go for rating information on State Farm or other insurance companies?

These rating companies are generally considered the best of those who monitor the financial strength of insurance companies:

• Best's Key Rating Guide (Property/Casualty edition)
  A.M. Best Company
  Ambest Road
  Oldwick, NJ 08858
• Standard & Poor's Insurer Insolvency Review
  (Property/Casualty Edition)
  National Underwriter Company
  505 Gest Street
  Cincinnati, OH
• Ward's Insurance Results (Property-Casualty)
  Ward Financial Group
  8805 Governors Hill Drive, Ste. 410
  Cincinnati, OH

Who are the largest property-liability insurance companies?

A.M. Best is one of the leaders in tracking this type of information:

• Best's Aggregates and Averages (Property-Casualty edition, annual)
  A.M. Best Company
  Ambest Road
  Oldwick, NJ 08858

Where can I find summaries of insurance laws?

Here are a few we are aware of:

• Analysis of Worker's Compensation Laws (annual)
  U.S. Chamber of Commerce
  1615 H Street, N.W.
  Washington, DC
• Automobile Insurance Laws: A Summary of Selected State Laws
  And Regulations Relating to Automobile Insurance (annual)
  American Insurance Association
  1130 Connecticut Avenue N. W., Suite 1000
  Washington, DC 20036
• FD & S Licensing, Coutersigning & Surplus Lines Laws: For the 50 States, District of Columbia, Territories and Possessions (annual)
  National Underwriting Company 505 Gest Street
  Cincinnati, OH
• The Law of Commercial Insurance by Mark S. Rhodes (updated twice annually)