| Winter 2008
Dividends Reward New Policyholders
In November, Texas Mutual distributed approximately $2 million in early-qualifier dividends. Approximately 2,700 new 2007 policyholders earned a dividend by controlling their loss ratio.
The early-qualifier distribution is the final piece of our $150 million 2008 dividend plan. We sent agents a list of their qualifying clients in advance. To be considered for eligibility, a policyholder must have met the following minimum standards:
- The policyholder’s loss ratio must be within an acceptable range.
- The policyholder must have had a policy expiring in 2007.
- The policyholder must have had an in-force policy as of June 15, 2008. If the policy expired before June 15, 2008 or renews after June 15, 2008, the policyholder may still be eligible for a dividend, provided there was no more than a 30-day gap in coverage.
Dividends are an excellent retention tool. “Once a policyholder gets that check in their hand, you’ve got someone who’s going to stay with you for a long time,” said John Brimberry of Frost Insurance.
Please remind your clients that their dividend earning potential increases through their fifth consecutive year with Texas Mutual. If they leave before then or have a break in coverage, they start from square one when they return.
In response to requests from our Agents Advisory Council, we designed a dividend marketing tool to help agents explain their clients’ dividend earning potential.
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