MARYLAND INSURANCE ADMINISTRATION
JUNE 24, 2004
3 Agents 509 Applications Written Average 169 applications each Total Replacements 72 Average 24 replacements each
2 Agents 360 Applications Written Average 180 applications Total Replacements 41 Average 20 replacements each
Remedial training was noted in the reports sent to the Company Vice President. These reports indicated remedial training was done. The examiners could find no record of when and how it was accomplished.
The Company agrees that remedial training may be appropriate where replacements are identified that do not conform to Maryland laws or where the volume of replacements is a high percentage of new business written by an agent or sales office.
The summary of data on the four offices contained in this section indicates that the percentage of replacements to new business written ranges from 3% to 14% with an overall average of 7.6%. Given the changing needs of customers and improved producers that are now available, the Company does not believe that these numbers are a cause for concern. It is also the Company’s understanding that the percentages are significantly below the industry norm.
MET LIFE REPORT NO. 786-01