Insurance Operations

Insurance Operations manages relationships, administers programs, and evaluates crop and life insurance carriers. This service also provides support tools and services, administration of life insurance programs, insurance systems, centralized reporting, communications, forms, and procedures. See a detailed description of this service.

Service Value and Key Benefits

Key benefits derived from the insurance program include:

  • A “shared-cost” insurance support system that meets the diversified needs of our customers
  • Reduced customer costs and resources, because centralized support services create economies of scale
  • The ability of Insurance Operations to create leverage with insurance companies to provide low-cost competitive products and services to FCS customers that provide individual and loan portfolio risk protection, as well as diversify and increase our customers’ fee income

Detailed Description of Insurance Operation’s Service

Insurance Operations Services Package

The Services Package was developed through the direction of the District Insurance Committee.

  1. Life Insurance Program Administration – SunStream provides staff to administer and oversee the various insurance programs and ensure that the programs comply with FCA regulations, are competitive in the marketplace, and meet our customers’ needs.
    • Evaluate Insurance Company Plans and Programs to Ensure Program Feasibility
    • Negotiate and Obtain Master Contracts/Managing General Agent (MGA) Agreements with Life Insurance Carriers
    • Provide Support in the Integration and Product Access of District Life Insurance Products
    • Develop Policies and Procedures
    • Retain Alternative Carriers
    • Life Insurance Reporting
    • Maintain records in sufficient detail to facilitate the review and supervision of the insurance programs
    • Life Insurance Manuals/Best Practices – Develop, maintain, and distribute manuals, sales, and marketing templates to help provide expertise to our customers regarding best practices, policies, and procedures
    • Research Potential Insurance Carriers, Pilot Programs, and Products to Ensure Marketplace Competitiveness
    • Provide Initial Testing/Ongoing Support for Life Insurance Companies’ Software and Websites
    • Provide Support for Life Insurance Forms
    • Technical Projects (relating to insurance) – Serve as business subject matter experts on technical projects that affect the delivery of insurance and serve as facilitator for our customers when requested
    • Support Automated RSS Processing – Includes corporate licensing (to receive and process commissions), create the billing calendar, troubleshoot RSS issues, bi-monthly incoming/outgoing insurance wire processing, and act as insurance company liaison with the Retail Product Solutions group.
  2. Insurance Company Due Diligence – SunStream performs due diligence on all insurance carriers, which includes:
    • Memorandum of Understanding – Obtain Agreements from Crop Insurance Carriers
    • Evaluate the risk associated with corporate structure and ownership of MGA, underwriting, and parent companies utilized within the AgriBank District. Evaluate product offerings, MGA (agency) services and/or image risk, monitor daily news updates from Internet. Prepare quarterly updates on all companies whose rating is below an A- by AM Best
    • Obtain and evaluate annual AM Best reports on all companies utilized in the AgriBank District. Review and obtain daily updates from AM Best Internet site regarding rating changes or other potential impacts on companies and identify potential risks associated with companies to our customers.
    • On-Site Insurance Company Inspection – Meet with Corporate Management and VPs of agencies and parent companies annually.
    • Maintain up-to-date list of companies, addresses, contact names, telephone numbers, email addresses, Internet sites, and distribute list to our customers.
    • Provide information/explanation of MGA’s and companies utilized in the AgriBank District. Document AM Best ratings, analysis, and risk assessment as conducted by SunStream. Analyze relationship between MGA, underwriting company and parent company. Provide information and templates regarding specific company products.
    • An annual service quality review is conducted with each District Carrier, and a summary is provided to all our customers. Work with carriers to resolve service issues.
    • Review and analyze customer life insurance contracts and plans. Monitor the soundness and feasibility of District plans and programs.
    • Provide a high-level overview to ensure insurance carriers have security measures in place to protect customer information. A summary of security information provided by insurance carriers will be published in the Annual Company Standing Report.
  3. Insurance Reports and Communications
    • Crop Insurance Reporting – Insurance Operations obtains the data through RMA, crop insurance carriers, and NCIS to prepare and distribute a variety of crop insurance reports including:
      • Customer Crop Activity Report, By Company, by Product
      • Customer Report of Total Product Sales, by Product
      • Customer Multi-Peril Crop Insurance Penetration Report
      • Customer Hail Insurance Penetration
    • Additional Reports:
      • Customer Crop Activity Report, By Company, by Product
      • Customer Report of Total Product Sales, by Product
      • Customer Multi-Peril Crop Insurance Penetration Report
      • Customer Hail Insurance Penetration
    • Crop Insurance Communications – Include but are not limited to:
      • Organize and Distribute Crop Insurance Communications
      • Research and Analyze Industry and Legislative
      • Develop, Produce, and Deliver Insurance Information via the Insurance Page on the SunStream Website
  4. Additional Benefits for customers purchasing Insurance Services:
    • Customers will have a voice with the District Insurance Committee and potentially may serve as a committee member.
    • Access to the District Insurance Conference at a minimum of 50% of the non-member rate.
    • Opportunity to participate in the Annual Crop Insurance Leadership meetings and periodic conference calls.
    • Access to the Insurance Operations Intranet site, webinars and “Just Ask” Newsletter.
    • Access to research/information on legislative and industry issues.

Business Service Manager

Mary Pelstring

Manager, Insurance Operations
(651) 282-7784
[email protected]