320 W. Washington Street
Springfield, Illinois 62767
(217) 782-4515
http://insurance.illinois.gov
Illinois Department of Insurance
JB Pritzker
Governor
Dana Popish Severinghaus
Director
June 23, 2022
Mr. Matthew
Dutkanych, President
Producers National Group
7400 North Caldwell
Niles, IL. 60714
Re: Stonegate Insurance Company, NAIC 14012
U
nique Insurance Company, NAIC 10655
Viva Seguros Insurance Company, NAIC 14941
Market Conduct Examination Verified Report
D
ear Mr. Dutkanych,
A
Market Conduct Examination of your companies was conducted by an authorized examiner designated by the
Director of the Illinois Department of Insurance (“Department”) pursuant to Illinois Insurance Code (“Code”)
Sections 132, 132.5(f), 404(1)(a) and 404(1)(c). This examination covered the period of January 1, 2019, through
March 31, 2022. Enclosed with this letter is a copy of the verified examination report.
The
examination report is a public document under the Freedom of Information Act (“FOIA”) [5 ILCS 140/1 et
seq.] and will be posted on the Department’s website. To the extent that the examination report contains information
that your Company deems private, personal, or trade secret pursuant to Sections 7(1)(b), (c), or (g) of FOIA [5 ILCS
140/7(b), (c), and (g)], your Company may request that the Department redact such information from the report
prior to making it public. In making a request for confidentiality, your Company must provide a factual basis for
its assertion of confidentiality. The Department will consider the request and determine whether such information
is exempt from disclosure under Section 7 of FOIA.
N
o company, corporation, or individual shall use this report or any statement, excerpt, portion, or section thereof
for any advertising, marketing or solicitation purpose. Any company, corporation or individual action contrary to
the above shall be deemed a violation of Section 149 of the Illinois Insurance Code (215 ILCS 5/149).
P
lease contact me if you have any questions.
S
incerely,
E
rica Weyhenmeyer
Chief Market Conduct Examiner
Illinois Department of Insurance
320 West Washington St., 5th Floor
Springfield, IL 62767
Phone: 217-782-1790
Erica.Weyhenmey[email protected]
Company Name: STONEGATE INSURANCE COMPANY
CoCode: 14012
Group Code: 4717
Private Passenger Auto Liability
Statewide data (Illinois only) as of 3/31/2022 Q1 - 2019 Q2 -2019 Q3 - 2019 Q4 - 2019 Q1 - 2020 Q2 - 2020 Q3 - 2020 Q4 - 2020 Q1 - 2021 Q2 - 2021 Q3 - 2021 Q4 - 2021
(2) All expenses other than loss adjustment expenses, excluding amounts from item 5 below
(3) Net Earned Premium Before Application of any COVID-19 Related Premium Credit/Refund/Dividend $925,974 $1,218,474 $1,414,772
$1,558,925 $1,577,140
$1,257,961
$1,025,754 $818,244 $673,346 $662,116 $676,973 $680,672
(4) The Amount of any COVID-19 Related Premium Credit/Refund/Dividend accounted for as premium $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
(5) The Amount of any COVID-19 Related Credit/Refund/Dividend accounted for as expense
(6) Net Ultimate Incurred Losses and Defense and Cost Containment Expenses $193,496 $375,946 $598,122 $601,742 $869,524 $297,776 $499,134 $756,860 $788,362
$750,732 $683,544 $961,996
(7) Net Ultimate Adjusting & Other
(8) Ultimate Reported Claim Counts (excluding Claims Closed without Payment) 21 48 119 227 173 305 123 99 81 76 42 26
(9) Open Claim Counts 157 365 531
611 746 546 516 508
468 458 488 523
Post-refund combined ratio (6+7+2+5)/(3-4) 20.9% 30.9% 42.3% 38.6% 55.1% 23.7% 48.7% 92.5% 117.1%
113.4% 101.0% 141.3%
Pre-refund combined ratio (6+7+2)/(3) 20.9% 30.9% 42.3% 38.6% 55.1% 23.7% 48.7% 92.5% 117.1% 113.4% 101.0% 141.3%
Claims severity (6)/(8)
9,214
7,832 5,026 2,651 5,026 976 4,058 7,645 9,733
9,878 16,275 37,000
Notes:
All data provided in rows (2)-(9) will be considered public.
"Net" refers to net of reinsurance and salvage & subrogation.
Claim counts should be reported net of quota share reinsurance.
Accident Quarter
Data from row (1) will be made available on an all company weighted average frequency basis. Data will not be publicly released on an individual company basis.
Company Name: STONEGATE INSURANCE COMPANY CoCode: 14012 Group Code: 4717
Private Passenger Auto Physical Damage
Statewide data (Illinois only) as of 3/31/2022 Q1 - 2019
Q2 -2019 Q3 - 2019 Q4 - 2019 Q1 - 2020 Q2 - 2020 Q3 - 2020 Q4 - 2020 Q1 - 2021
Q2 - 2021 Q3 - 2021
Q4 - 2021
(2) All expenses other than loss adjustment expenses, excluding amounts from item 5 below
(3) Net Earned Premium Before Application of any COVID-19 Related Premium Credit/Refund/Dividend $859,668 $1,006,899 $1,094,397 $1,126,702 $1,118,414 $862,328 $739,192 $598,714 $493,615 $482,586 $494,889 $500,771
(4) The Amount of any COVID-19 Related Premium Credit/Refund/Dividend accounted for as premium
$0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0
(5) The Amount of any COVID-19 Related Credit/Refund/Dividend accounted for as expense
(6) Net Ultimate Incurred Losses and Defense and Cost Containment Expenses $355,342 $667,805 $667,596 $603,195 $725,249 $527,990 $476,635 $440,917 $302,311 $302,348 $348,995 $417,326
(7) Net Ultimate Adjusting & Other
(8) Ultimate Reported Claim Counts (excluding Claims Closed without Payment) 25 54 70
122 77 75 59 56 45 34 20 22
(9) Open Claim Counts 82 149 170 192 169 122 98 83 66 64 95 122
Post-refund combined ratio (6+7+2+5)/(3-4) 41.3% 66.3% 61.0% 53.5% 64.8%
61.2% 64.5% 73.6% 61.2% 62.7% 70.5% 83.3%
Pre-refund combined ratio (6+7+2)/(3) 41.3% 66.3% 61.0% 53.5% 64.8% 61.2% 64.5% 73.6%
61.2% 62.7% 70.5% 83.3%
Claims severity (6)/(8) 14,214 12,367 9,537 4,944 9,419 7,040 8,079 7,874 6,718 8,893 17,450 18,969
Notes:
All data provided in rows (2)-(9) will be considered public.
"Net" refers to net of reinsurance and salvage & subrogation.
Claim counts should be reported net of quota share reinsurance.
Accident Quarter
Company Name: UNIQUE INSURANCE COMPANY CoCode: 10655
Group Code: 4717
Private Passenger Auto Liability
Statewide data (Illinois only) as of 3/31/2022 Q1 - 2019 Q2 -2019 Q3 - 2019 Q4 - 2019 Q1 - 2020 Q2 - 2020 Q3 - 2020 Q4 - 2020 Q1 - 2021 Q2 - 2021 Q3 - 2021 Q4 - 2021
(2) All expenses other than loss adjustment expenses, excluding amounts from item 5 below
(3) Net Earned Premium Before Application of any COVID-19 Related Premium Credit/Refund/Dividend $11,369,091 $11,113,876 $10,331,460 $9,771,999 $9,207,728 $8,983,334 $9,771,447 $9,311,033 $8,583,487 $8,654,890 $8,046,274 $7,649,761
(4) The Amount of any COVID-19 Related Premium Credit/Refund/Dividend accounted for as premium $0 $0 $0 $0 $0 $532,645 $900,242 $104,959 $43,679 $14,136 $1,767 -$24
(5) The Amount of any COVID-19 Related Credit/Refund/Dividend accounted for as expense
(6) Net Ultimate Incurred Losses and Defense and Cost Containment Expenses $2,776,598 $4,362,336 $4,666,337 $4,756,049 $5,317,467 $3,860,189 $4,407,472 $5,897,621 $6,334,107 $6,700,527 $6,991,995 $9,566,355
(7) Net Ultimate Adjusting & Other
(8) Ultimate Reported Claim Counts (excluding Claims Closed without Payment) 361 889 1386 1447 1742 1783 1389 1319 1285 1188 798 709
(9) Open Claim Counts 1461 2976 4062 4775 4816 4003 4096 4160 4114 4295 4640 4813
Post-refund combined ratio (6+7+2+5)/(3-4) 24.4% 39.3% 45.2% 48.7% 57.8% 45.7% 49.7% 64.1% 74.2% 77.5% 86.9% 125.1%
Pre-refund combined ratio (6+7+2)/(3) 24.4% 39.3% 45.2% 48.7% 57.8% 43.0% 45.1% 63.3% 73.8% 77.4% 86.9% 125.1%
Claims severity (6)/(8) 7,691 4,907 3,367 3,287 3,053 2,165 3,173 4,471 4,929 5,640 8,762 13,493
Notes:
All data provided in rows (2)-(9) will be considered public.
"Net" refers to net of reinsurance and salvage & subrogation.
Claim counts should be reported net of quota share reinsurance.
Accident Quarter
Data from row (1) will be made available on an all company weighted average frequency basis. Data will not be publicly released on an individual company basis.
Company Name: UNIQUE INSURANCE COMPANY CoCode:
10655 Group Code:
4717
Private Passenger Auto Physical Damage
Statewide data (Illinois only) as of 3/31/2022 Q1 - 2019
Q2 -2019 Q3 - 2019
Q4 - 2019 Q1 - 2020 Q2 - 2020 Q3 - 2020 Q4 - 2020 Q1 - 2021 Q2 - 2021
Q3 - 2021
Q4 - 2021
(2) All expenses other than loss adjustment expenses, excluding amounts from item 5 below
(3) Net Earned Premium Before Application of any COVID-19 Related Premium Credit/Refund/Dividend $7,544,887
$7,155,888 $6,271,832 $5,596,574 $5,004,225 $4,657,069 $4,883,489 $4,477,627
$3,977,498 $3,932,664
$3,514,662
$3,145,448
(4) The Amount of any COVID-19 Related Premium Credit/Refund/Dividend accounted for as premium $0 $0 $0 $0 $0 $261,402 $512,497
$81,499
$37,717 $12,934 $1,981 $0
(5) The Amount of any COVID-19 Related Credit/Refund/Dividend accounted for as expense
(6) Net Ultimate Incurred Losses and Defense and Cost Containment Expenses $2,165,089 $3,185,897 $2,648,305 $2,200,847 $2,138,864 $1,200,584 $2,172,398 $2,208,753 $2,244,403 $2,204,489 $2,043,541 $1,898,666
(7) Net Ultimate Adjusting & Other
(8) Ultimate Reported Claim Counts (excluding Claims Closed without Payment) 669 747 764 818 752 673 703 620 624 501 478 415
(9) Open Claim Counts 455 602 892 910 752 616 669 558 475 472 457 541
Post-refund combined ratio (6+7+2+5)/(3-4) 28.7% 44.5% 42.2% 39.3%
42.7% 27.3% 49.7% 50.2% 57.0%
56.2% 58.2% 60.4%
Pre-refund combined ratio (6+7+2)/(3) 28.7% 44.5%
42.2% 39.3% 42.7% 25.8% 44.5% 49.3% 56.4%
56.1% 58.1% 60.4%
Claims severity (6)/(8) 3,236
4,265 3,466 2,691 2,844 1,784
3,090 3,563 3,597 4,400 4,275 4,575
Notes:
All data provided in rows (2)-(9) will be considered public.
"Net" refers to net of reinsurance and salvage & subrogation.
Claim counts should be reported net of quota share reinsurance.
Accident Quarter
Data from row (1) will be made available on an all company weighted average frequency basis. Data will not be publicly released on an individual company basis.
Company Name: VIVA SEGUROS INSURANCE COMPANY CoCode:
14941 Group Code:
4717
Private Passenger Auto Liability
Statewide data (Illinois only) as of 3/31/2022 Q1 - 2019
Q2 -2019 Q3 - 2019
Q4 - 2019 Q1 - 2020 Q2 - 2020 Q3 - 2020 Q4 - 2020 Q1 - 2021 Q2 - 2021
Q3 - 2021
Q4 - 2021
(2) All expenses other than loss adjustment expenses, excluding amounts from item 5 below
(3) Net Earned Premium Before Application of any COVID-19 Related Premium Credit/Refund/Dividend $5,913,251
$5,137,753 $4,138,491 $3,590,556 $3,906,790 $4,595,963 $5,466,919 $5,439,470
$5,020,446 $5,053,663
$4,836,970
$4,604,926
(4) The Amount of any COVID-19 Related Premium Credit/Refund/Dividend accounted for as premium $0 $0 $0 $0 $0 $340,393 $487,082
$65,372
$23,827 $5,987 $698 $0
(5) The Amount of any COVID-19 Related Credit/Refund/Dividend accounted for as expense
(6) Net Ultimate Incurred Losses and Defense and Cost Containment Expenses $1,841,563 $2,173,741 $2,325,118 $2,317,861 $2,806,801 $1,744,145 $2,436,512 $2,739,812 $3,063,138 $3,764,273 $4,108,007 $5,166,872
(7) Net Ultimate Adjusting & Other
(8) Ultimate Reported Claim Counts (excluding Claims Closed without Payment) 100 429 625 547 692 833 712 672 630 571 377 404
(9) Open Claim Counts 995 1609 1915 2264 2400 2008 2086 2047 2116 2275 2564 2610
Post-refund combined ratio (6+7+2+5)/(3-4) 31.1% 42.3% 56.2% 64.6%
71.8% 41.0% 48.9% 51.0% 61.3%
74.6% 84.9% 112.2%
Pre-refund combined ratio (6+7+2)/(3) 31.1% 42.3%
56.2% 64.6% 71.8% 37.9% 44.6% 50.4% 61.0%
74.5% 84.9% 112.2%
Claims severity (6)/(8) 18,416
5,067 3,720 4,237 4,056 2,094
3,422 4,077 4,862 6,592 10,897 12,789
Notes:
All data provided in rows (2)-(9) will be considered public.
"Net" refers to net of reinsurance and salvage & subrogation.
Claim counts should be reported net of quota share reinsurance.
Accident Quarter
Data from row (1) will be made available on an all company weighted average frequency basis. Data will not be publicly released on an individual company basis.
Company Name: VIVA SEGUROS INSURANCE COMPANY CoCode:
14941 Group Code:
4717
Private Passenger Auto Physical Damage
Statewide data (Illinois only) as of 3/31/2022 Q1 - 2019
Q2 -2019 Q3 - 2019
Q4 - 2019 Q1 - 2020 Q2 - 2020 Q3 - 2020 Q4 - 2020 Q1 - 2021 Q2 - 2021
Q3 - 2021
Q4 - 2021
(2) All expenses other than loss adjustment expenses, excluding amounts from item 5 below
(3) Net Earned Premium Before Application of any COVID-19 Related Premium Credit/Refund/Dividend $1,793,071
$1,605,940 $1,281,824 $1,099,960 $1,254,043 $1,623,306 $2,086,670 $2,080,363
$1,955,115 $2,073,928
$2,040,643
$1,940,053
(4) The Amount of any COVID-19 Related Premium Credit/Refund/Dividend accounted for as premium $0 $0 $0 $0 $0 $139,664 $191,681
$32,075
$11,978 $3,569 $519 $0
(5) The Amount of any COVID-19 Related Credit/Refund/Dividend accounted for as expense
(6) Net Ultimate Incurred Losses and Defense and Cost Containment Expenses $488,238 $597,289 $551,624 $435,098 $472,429 $406,102 $824,493 $1,000,314 $1,036,913 $1,283,504 $1,391,127 $1,427,255
(7) Net Ultimate Adjusting & Other
(8) Ultimate Reported Claim Counts (excluding Claims Closed without Payment) 89 169 152 146 174 222 287 283 288 279 235 216
(9) Open Claim Counts 130 134 204 205 206 228 251 224 227 248 257 321
Post-refund combined ratio (6+7+2+5)/(3-4) 27.2% 37.2% 43.0% 39.6%
37.7% 27.4% 43.5% 48.8% 53.4%
62.0% 68.2% 73.6%
Pre-refund combined ratio (6+7+2)/(3) 27.2% 37.2%
43.0% 39.6% 37.7% 25.0% 39.5% 48.1% 53.0%
61.9% 68.2% 73.6%
Claims severity (6)/(8) 5,486
3,534 3,629 2,980 2,715 1,829
2,873 3,535 3,600 4,600 5,920 6,608
Notes:
All data provided in rows (2)-(9) will be considered public.
"Net" refers to net of reinsurance and salvage & subrogation.
Claim counts should be reported net of quota share reinsurance.
Accident Quarter
Data from row (1) will be made available on an all company weighted average frequency basis. Data will not be publicly released on an individual company basis.