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NAIC NUMBER GEICO GENERAL INSURANCE COMPANY

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					GEICO GENERAL INSURANCE COMPANY

 EXAMINATION: DECEMBER 31, 2004




                              NAIC NUMBER 35882
                                                    TABLE OF CONTENTS
                                                                                                                                           Page

Salutation......................................................................................................................................1
Scope of Examination ..................................................................................................................2
Status of Prior Examination Findings .........................................................................................3
History ..........................................................................................................................................3
     General .................................................................................................................................3
     Capital Stock........................................................................................................................4
     Dividends to Stockholder ....................................................................................................4
     Management.........................................................................................................................4
            Board of Directors.......................................................................................................4
            Officers ........................................................................................................................5
            Committees..................................................................................................................6
     Conflicts of Interest .............................................................................................................6
     Corporate Records ...............................................................................................................6
Affiliated Companies ...................................................................................................................7
Intercompany Agreements...........................................................................................................8
Fidelity Bond and Other Insurance..............................................................................................9
Pension, Stock Ownership and Insurance Plans .........................................................................9
Statutory Deposits ..................................................................................................................... 10
Territory and Plan of Operation................................................................................................ 11
Insurance Products and Related Practices................................................................................ 12
Reinsurance ............................................................................................................................... 12
Accounts and Records............................................................................................................... 13
Financial Statements ................................................................................................................. 14
     Balance Sheet.................................................................................................................... 15
            Assets........................................................................................................................ 15
            Liabilities, Surplus and Other Funds....................................................................... 16
     Statement of Income......................................................................................................... 17
     Capital and Surplus Account............................................................................................ 18
     Analysis of Examination Changes to Surplus ................................................................. 20
     Growth of the Company................................................................................................... 21
Notes to Financial Statements .................................................................................................. 22
Comments and Recommendations ........................................................................................... 23
Subsequent Events .................................................................................................................... 24
Conclusion................................................................................................................................. 25
Signatures .................................................................................................................................. 26
                                                   Baltimore, Maryland
                                                   January 12, 2006


Honorable Alfred W. Gross
Chairman, NAIC Financial Condition (E) Committee
Insurance Commissioner
SCC Bureau of Insurance Commonwealth of Virginia
1300 East Main Street
Richmond, Virginia 23219

Honorable Ann Womer Benjamin
Secretary, Midwestern Zone, NAIC
Director of Insurance
Ohio Department of Insurance
2100 Stella Court
Columbus, Ohio 43215

Honorable Julie M. Bowler
Secretary, Northeastern Zone, NAIC
Insurance Commissioner
Commonwealth of Massachusetts
Division of Insurance
One South Station, 5th Floor
Boston, Massachusetts 02110

Honorable Eleanor Kitzman
Secretary, Southeastern Zone, NAIC
Insurance Commissioner
State of South Carolina Department of Insurance
300 Arbor Lake Drive, Suite 1200
Columbia, South Carolina 29223

Honorable Gary Smith
Secretary, Western Zone, NAIC
Insurance Commissioner
State of Idaho Department of Insurance
700 West State Street
Boise, Idaho 83720

Honorable R. Steven Orr
Insurance Commissioner
Maryland Insurance Administration
525 St. Paul Place
Baltimore, Maryland 21202-2272
Dear Sirs and Madames:

     In compliance with your instructions and in accordance with Section 2-205 of the
Insurance Article of the Annotated Code of Maryland, an association examination has been
conducted of the financial condition and activities of the

                     GEICO GENERAL INSURANCE COMPANY

(hereinafter called the Company), at its home offices located at 5260 Western Avenue,
Chevy Chase, Maryland 20815-3799, and the following Report on Examination is
submitted.

                              SCOPE OF EXAMINATION

     This examination, covering the period from January 1, 2000 to December 31, 2004,
including any material transactions and/or events noted occurring subsequent to December
31, 2004, was conducted under the association plan of the National Association of Insurance
Commissioners (NAIC) by examiners of the Maryland Insurance Administration
representing the Northeastern Zone of the NAIC. The Southeastern, Midwestern and
Western Zones were invited to participate, but did not respond to the examination call.

   Concurrent with this examination, we also examined the following companies in the
GEICO Corporation Group:

                       Government Employees Insurance Company (GEICO)
                       GEICO Indemnity Company
                       GEICO Casualty Company

    Examination reports for those companies will be issued under separate cover.

     Our examination was conducted in accordance with examination policies and standards
established by the Maryland Insurance Administration and procedures recommended by the
NAIC and, accordingly, included such tests of the accounting records and such other
procedures as we considered necessary in the circumstances.

     Our examination included a review of the Company’s business policies and practices,
management and corporate matters, a verification and evaluation of assets and a
determination of the existence of liabilities. In addition, our examination included tests to
provide reasonable assurance that the Company was in compliance with applicable laws,
rules and regulations. In planning and conducting our examination, we gave consideration to
the concepts of materiality and risk, and our examination efforts were directed accordingly.

     The Company was audited annually by an independent public accounting firm. The
firm expressed unqualified opinions on the Company’s financial statements for calendar
years 2000 to 2004. We placed substantial reliance on the audited financial statements for


                                             2
calendar years 2000 through 2003, and consequently performed only minimal testing for
those periods. We concentrated our examination efforts on the year ended December 31,
2004. We reviewed the working papers prepared by the independent public accounting firm
related to the audit for the year ended December 31, 2004, and directed our efforts to the
extent practical to those areas not covered by the firm’s audit.


                  STATUS OF PRIOR EXAMINATION FINDINGS

     There are no prior exam findings for the report dated October 20, 2000, which covered
the period from January 1, 1995, to December 31, 1999.


                                        HISTORY

General:

     The Company was incorporated on March 27, 1978 as Equi-Gen Insurance Company
under the laws of Iowa to act as the vehicle for the transfer of corporate domicile of the
Equitable General Insurance Company from Fort Worth, Texas to Des Moines, Iowa,
effective December 31, 1978. Equitable General Insurance Company was incorporated
under the laws of Texas on May 15, 1934, under the name Associated Casualty Company,
and began business the following day. Several name changes ensued, with the present name
being adopted on September 29, 1982. Complete financial control of the Company was
acquired on March 31, 1982 by Government Employees Insurance Company from the
Equitable Life Assurance Society. On June 22, 1989, the Company was reincorporated and
redomesticated under the laws of Maryland as a stock property and casualty insurer. As of
December 31, 1994, the Company’s ultimate parent was GEICO Corporation, which was a
publicly owned holding company.


     On August 25, 1995, the boards of directors of Berkshire Hathaway Inc. (Berkshire) and
GEICO Corporation approved an Agreement and Plan of Merger for Berkshire to acquire
GEICO Corporation. At the same time, HPKF Inc., an indirect subsidiary of Berkshire,
would be merged into GEICO Corporation, with GEICO Corporation as the surviving entity.
Following the merger, GEICO Corporation became an indirect wholly owned subsidiary of
Berkshire. The agreement was subject to the approval of state insurance regulators as well
as the holders of a majority of GEICO Corporation’s shares not previously owned by
Berkshire. The agreement was approved by the Maryland Insurance Administration
effective October 13, 1995, and the merger was consummated on January 2, 1996.

    The primary purpose for which the Company was formed was to write insurance against
any kind of loss, damage or liability properly a subject of insurance, if such insurance was
not disapproved by the Maryland Insurance Commissioner as being contrary to the law or
public policy. Most new business was automobile liability and physical damage insurance



                                             3
written for preferred-risk individuals who were neither government employees nor military
personnel.


Capital Stock:

    The Company’s Articles of Redomestication and Reincorporation authorized the
Company to issue 357,142 shares of common stock with a par value of $28 per share. As of
December 31, 2004, the Company had issued 110,000 shares of common stock with an
aggregate par value of $3,080,000. All of the outstanding common stock was owned by
Government Employees Insurance Company.


Dividends to Stockholder:

    During the examination period the following ordinary cash dividends were paid:

    December 31, 2000                $5,900,000
    December 31, 2001                $5,800,000
    December 31, 2002                $5,800,000
    December 31, 2003                $5,300,000
    December 31, 2004                $5,700,000

     Dividends were paid to Government Employees Insurance Company for all years under
examination. In addition, the Company did not declare or pay any extraordinary dividends
during the examination period.

Management:

    The following persons were serving as the Company’s Directors as of December 31,
2004:

    Name and Address                        Principal Occupation
    Olza M. Nicely, Chairman                President and Chief Executive Officer,
    Great Falls, Virginia                   GEICO and GEICO Corporation

    Charles R. Davies                       Senior Vice President and General Counsel,
    Warrenton, Virginia                     GEICO and GEICO Corporation

    John J. Geer, Jr.                       Vice President,
    Vienna, VA                              GEICO

    James M. Hitt                           Vice President,
    Herndon, VA                             GEICO

    Donald R. Lyons                         Senior Vice President,


                                           4
    Potomac, MD                        GEICO

    Robert M. Miller                   Senior Vice President,
    University Park, TX                GEICO

    William E. Roberts                 Executive Vice President,
    Cabin John, Maryland               GEICO

    David L. Schindler                 Senior Vice President,
    Rockville, Maryland                GEICO

    Thomas M. Wells                    Senior Vice President and Chief Financial
    Brookeville, Maryland              Officer,
                                       GEICO and GEICO Corporation



    The following persons were serving as the Company’s principal officers as of
December 31, 2004:

    Olza Minor Nicely                  President, Chief Executive Officer and
                                         Chairman of the Board
    Thomas Milton Wells                Chief Financial Officer & Senior Vice
                                         President
    Jess C. Reed                       Chief Information Officer & Group Vice
                                         President
    Charles G. Schara                  Treasurer
    Jan C. Stewart                     Secretary & Assistant Vice President
    William Evan Roberts               Executive Vice President
    Charles Robinson Davies            General Counsel, Senior Vice President &
                                         Assistant Secretary
    Donald R. Lyons                    Senior Vice President
    Robert M. Miller                   Senior Vice President
    David Leon Schindler               Senior Vice President
    James G. Brown                     Vice President
    Michael H. Campbell                Vice President of Corporate Financial
                                         Reporting
    John J. Geer, Jr.                  Vice President
    James M. Hitt                      Vice President
    Lily S. Hopkins                    Vice President
    John J. Izzo                       Vice President
    S. Gregory Kalinsky                Vice President
    Carl J. Kelle                      Vice President
    Warren A. Klawitter                Vice President & Actuary
    Charles D. Kline, Jr.              Vice President & Actuary
    William J. McDonald                Controller


                                       5
    James F. Nayden, Jr.                      Vice President & Legislative Counsel
    Nancy L. Pierce                           Vice President
    David H. Pushman                          Vice President
    George W. Rogers                          Vice President
    Rynthia M. Rost                           Vice President
    Joseph R. Thomas                          Vice President
    Edward W. Ward, III                       Vice President


Committees:

   As of December 31, 2004, the Company’s Board of Directors had not appointed any
committees.

Conflicts of Interest:

     Directors, officers and responsible employees regularly responded to conflict of interest
questionnaires. If possible conflicts were disclosed, they were scrutinized further by
Company officials. Our review of the questionnaires for the years under examination
indicated no reported conflicts. In addition, we did not note any potential conflicts of
interest during our examination.

Corporate Records:

     We reviewed the minutes of the meetings of the Board of Directors for the period under
examination. Based on our review, it appeared that the minutes documented the Company’s
significant transactions and events, and that the Directors approved those transactions and
events.




                                              6
                             AFFILIATED COMPANIES

     As previously noted, the Company’s ultimate parent was Berkshire Hathaway Inc.
(Berkshire), a publicly traded holding company owning subsidiaries engaged in a number of
diverse business activities, including significant insurance activities. According to the
Company, there is one stockholder of Berkshire who owns or controls 10 percent or more of
the stock of Berkshire. As of December 31, 2004, Warren E. Buffett owned and controlled
approximately 31% of Berkshire. Portions of the holding company structure as of December
31, 2004, are depicted in the following chart:

                                                                          Domiciliary
                                                                          Jurisdiction

BERKSHIRE HATHAWAY INC.                                                   Delaware


    GEICO CORPORATION                                                     Delaware

       Government Employees Insurance Company (GEICO), (I)                Maryland

              GEICO General Insurance Company, (I)                        Maryland

       GEICO Indemnity Company, (I)                                       Maryland

              GEICO Casualty Company, (I)                                 Maryland
              Criterion

       Insurancecy, Inc.     Wholly owned                  TX
NOTE: all subsidiaries were wholly owned subsidiaries.
(I) Denotes insurance company




                                            7
                       INTERCOMPANY AGREEMENTS

Investment Advisory Agreement:

     Effective January 1, 1990, the Company entered into an investment advisory agreement
with GEICO Corporation (Corporation) whereby Corporation agreed to act in the capacity of
an advisor by formulating an investment policy and performing the management and
investment of the Company’s assets. Upon written authorization from the Company,
Corporation could effect securities transactions under guidelines previously authorized by
the Company. Corporation’s duties included the performance of investment data processing
services, financial market analysis, valuation of prospective assets, price negotiation for
purchases and sales of assets and economic forecasts. Fees for these services are paid under
the below-mentioned “Investment Advisory Fee Agreement”.

Investment Advisory Fee Agreement:

     Effective January 1, 1996, the Company entered into an investment advisory fee
agreement with GEICO Corporation (Corporation) whereby, for services rendered under the
aforementioned “Investment Advisory Agreement”, the Company paid Corporation a
quarterly fee equal to .025 percent of the statutory value of the Company’s investment
portfolio excluding real estate and cash. These fees were calculated on the basis of the
Company’s securities portfolio at the end of the second preceding quarter. Investment
advisory fees were paid in advance from the Company to Corporation at the beginning of
each quarter and amounted to $127,528 and $115,647 for the years ending December 31,
2004 and 2003, respectively.

Consolidated Federal Income Tax Allocation Agreement:

     The Company and the other entities comprising the GEICO Corporation holding
company system were participants in an agreement, dated June 30, 1988 and amended June
17, 1998, for the allocation of liability due to the consolidated federal income tax return of
the GEICO Corporation group of companies.

     The signatories to this agreement agreed to allocate such liability among members of
the group in conformance with appropriate sections of the Internal Revenue Service
Regulations. Under these Regulations, the consolidated tax liability was allocated among the
members of the group in the ratio that each member’s separate return tax liability bore to the
sum of the separate return tax liability of the members. In the event of a net operating loss,
capital loss or carry forward or carry-back, the group credited to member companies
sustaining the loss the amount of tax by which the consolidated tax liability of the group
members has been reduced by reason of the inclusion of any such loss in the consolidated
return. If taxable income, special deductions or credits reported in a consolidated federal
income tax return were revised by the Internal Revenue Service or other appropriate
authority, a recalculation of the tax liability for all parties to the Agreement was made.



                                              8
Intercompany Charge Agreement:

     The Company had no employees. All needed services (e.g., maintenance of accounting
records, underwriting, etc.) were performed by employees of Government Employees
Insurance Company. The Company would be charged for these services under the
provisions of the Intercompany Charge Agreement. As indicated in the “Reinsurance”
section of this report, the Company cedes 100 percent of its direct business to its parent.
Under the reinsurance agreement, the Company receives a ceding commission from its
parent adequate to cover all expenses related to its business ceded. Since all of the
Company's business was ceded 100 percent to its parent, and all of the Company's expenses
were paid by its parent under the reinsurance agreement, no additional payments were made
in 2004 under the Intercompany Charge Agreement.

     The Intercompany Charge Agreement is a document that sets forth the procedures and
methods to be used for the allocation of expenses among the members of the GEICO
Corporation group. The agreement stated that any transactions under the Intercompany
Charge Agreement will be handled in accordance with the method of allocation described in
“Uniform Accounting: Instruction for Uniform Classification of Expenses,” as set forth in
the NAIC’s Financial Condition Examiners Handbook.

   All of the above intercompany agreements were approved by the Maryland Insurance
Administration.


                    FIDELITY BOND AND OTHER INSURANCE

     The Company and other of its affiliates were named insureds under a fidelity bond in
the amount of $5,000,000. The fidelity bond coverage exceeded the minimum suggested by
the NAIC for the Company. Our calculation took into account the four insurers of the
GEICO Corporation group of companies. In addition, the Company had other insurable
risks (e.g., business property). Based on our review, the Company’s insurance coverages for
these risks appeared to be adequate.


            PENSION, STOCK OWNERSHIP AND INSURANCE PLANS

     GEICO Corporation and its subsidiaries had established a non-contributory defined
benefit pension plan covering substantially all full-time and qualifying part-time employees
who were at least twenty-one years old and had completed one year of service. The plan
provided for payment based on salary and years of service and estimated social security
benefits at the age of retirement. Annual contributions to the plan were determined on an
actuarial basis and were based on amounts, which could be deducted for federal income tax
purposes. The Company made no contributions to the plan and did not recognize any
pension expense in the years under examination since the plan was adequately funded in



                                             9
accordance with the Company’s policy. The accumulated benefit obligation is included with
Government Employees Insurance Company.


    Other benefits provided by GEICO Corporation and its subsidiaries included:

       1.   A defined contribution profit sharing plan (401(k)) for which all full-time and
            qualifying part-time employees were eligible. Eligible employees could
            participate in the 401(k) portion immediately after being hired by making
            contributions, and were eligible to participate in the Company contribution
            portion after completing one year of service. Prior to July 1, 2000, employees
            were also required to be at least 21 years of age to be eligible for the plan.
       2.   Medical, dental, accidental death and dismemberment, long term disability and
            life insurance coverages for all full-time employees. The Company contributed
            75 percent of the employees’ medical premiums, 70 percent of the employees’
            dental premiums, 100 percent of the accidental death and dismemberment
            premiums and 100 percent of the premiums for basic long term disability and
            life insurance coverages. Employees were eligible to purchase optional long
            term disability and life insurance coverage at their own expense.


Postretirement Benefits:

     In addition to pension benefits, certain health care and life insurance benefits are
provided for certain employees who retire under the pension plan. The accumulated benefit
obligation is included with Government Employees Insurance Company.

Stock Ownership Plans:

    The Company did not have any stock ownership plans.



                               STATUTORY DEPOSITS

     In compliance with Section 4-106 of the Insurance Article of the Annotated Code of
Maryland, as of December 31, 2004 the Company had deposited in trust with the Maryland
State Treasurer bonds with a total par value of $3,300,000 and a market value of
$3,633,372. These funds were held for the protection of all of the Company’s policyholders
and creditors.




                                            10
     In addition, as of December 31, 2004 the Company had bonds on deposit with other
jurisdictions as follows (each deposit was for the protection of the policyholders in that
jurisdiction):
                                           Par Value          Market Value

               California                   $ 135,000              $ 156,630
               Georgia                        150,000                174,033
               Louisiana                      100,000                100,844
               Massachusetts                  200,000                222,056
               New Hampshire                   15,000                 16,654
               New Mexico                     350,000                406,077
               North Carolina                 350,000                352,954
               Oregon                         275,000                319,061

                   Total                    $1,575,000             $1,748,309




                      TERRITORY AND PLAN OF OPERATION

     As of December 31, 2004, the Company was authorized to transact the business of
insurance in the District of Columbia and all fifty states of the United States. The Company
wrote direct business during 2004 in all of these jurisdictions except for Hawaii,
Massachusetts, Michigan, New Jersey, North Carolina and South Carolina. The majority of
the Company’s direct business in 2004 was written in the states of California (6%),
Connecticut (3%), Florida (18%), Georgia (3%), Maryland (7%), New York (23%), Texas
(7%) and Virginia (5%). As indicated in the “Reinsurance” section of this report, the
Company cedes 100 percent of its business to its parent.

     The Company’s major product was automobile insurance, which represented all of its
direct premiums written during 2004. The Company markets this product at preferred rates
for individuals who were neither government employees nor military personnel.

     Sales of the Company’s product are mainly through the means of telephone, mail and
the internet. A small number of exclusive agents were also utilized, primarily around military
bases. Regional and branch offices were maintained that could quote premium rates and
issue binders.




                                             11
              INSURANCE PRODUCTS AND RELATED PRACTICES

     The Maryland Insurance Administration’s Property and Casualty Section’s Market
Conduct Unit conducted a market conduct examination of the GEICO affiliated entities,
Government Employees Insurance Company, GEICO General Insurance Company,
GEICO Indemnity Company, and GEICO Casualty Company, for the period covering
September 1, 2002 through August 31, 2003. The market conduct examination report,
which was issued on April 29, 2005, included reviews of the Company’s sales and
advertising, agent licensing, underwriting practices, policy forms, rating, claims
processing and complaint handling practices and procedures. Our review of the market
conduct report indicated no adverse findings that would have a significant impact on the
financial condition of the Company as of our examination date.

    During our examination, we did not review the following market conduct-related areas:

               Policy Forms
               Fair Underwriting Practices
               Advertising and Sales Materials
               Treatment of Policyholders:
                       Claims Processing (Timeliness)
                       Complaints

                                     REINSURANCE

Assumed Reinsurance:

    The Company assumed reinsurance premiums totaling ($141,000) during 2004 and, as
of December 31, 2004, had loss and loss expense reserves for assumed business totaling
$35,876,036.

     With the exception of a small amount of business assumed from the New Hampshire
Reinsurance Facility, a mandatory participation pool, the Company did not have any active
in-force assumed reinsurance treaties.

Ceded Reinsurance:

    During 2004, the Company ceded reinsurance premiums totaling $3,907,383,000 and
had recorded reinsurance balances recoverable totaling $3,101,923,000 including
$1,034,130,000 for ceded unearned premiums and $2,067,782,000 for loss and loss
adjustment expense reserves, of which $1,878,895,000 was for losses and $188,887,000 for
loss adjustment expenses. If the reinsurers were not able to meet their obligations under the
agreements, the Company would be liable for any defaulted amounts. The Company did not
report any ceded reinsurance premiums payable to these same reinsurers.




                                             12
     With the exception of a small amount of business ceded to the New Hampshire
Reinsurance Facility, the Company’s only active ceded reinsurance treaty was with its
parent, Government Employees Insurance Company (GEICO). Under its quota share treaty
with GEICO, the Company ceded 100 percent of its personal lines business, net of other
reinsurance. This treaty represented 99.9 percent of all premium cessions by the Company
in 2004 and approximately 98.3 percent of the ceded loss and loss adjustment expense
reserves as of December 31, 2004.

    Our review of the various ceded reinsurance treaties disclosed no unusual provisions.


                             ACCOUNTS AND RECORDS

     The Company’s general accounting records consisted of an automated general ledger
and various subsidiary ledgers. Our review did not disclose any significant deficiencies in
these records.




                                            13
                             FINANCIAL STATEMENTS

    The following financial statements reflect the financial condition of the Company as of
December 31, 2004, as determined by this examination:



          STATEMENT                                                     PAGE

          Balance Sheet:
               Assets                                                     15
               Liabilities, Surplus and Other Funds                       16

          Statement of Income                                             17

          Capital and Surplus Account                                     18

          Analysis of Examination Changes to Surplus                      20

          Growth of the Company                                           21


     The accompanying Notes to Financial Statements are an integral part of these Financial
Statements.




                                            14
                                                     BALANCE SHEET

                                                        ASSETS

                                                                                       Nonadmitted       Net Admitted
                                                                 Assets
                                                                                         Assets             Assets
Bonds                                                      $       72,050,574      $                 - $     72,050,574

Cash ($170,460), Cash Equivalents ($40,261,010) and
                                                                                                     -
  Short-term investments ($10,056,425)                             50,487,895                                 50,487,895

Investment income due and accrued                                    1,239,403                       -         1,239,403

Premiums and considerations:
Uncollected premiums, agents’ balances in the course of
   collection
                                                                      659,868                 659,868                  -

Deferred premiums, agents’ balances and installments
  booked but deferred and not yet due.
                                                                          39,184               39,184                  -

Reinsurance:
                                                                                                     -
Amounts recoverable from reinsurers                                       10,512                                  10,512

Current federal and foreign income tax recoverable and
  interest thereon                                                        17,878                     -            17,878

Net deferred tax asset                                                248,402                        -           248,402

Electronic data processing equipment and software                     438,898                        -           438,898

Furniture and equipment, including health care delivery
   assets                                                             304,204                 304,204                 -

Receivables from parent, subsidiaries and affiliates                 1,284,732                       -         1,284,732

Other assets nonadmitted                                              227,308                 227,308                  -

Aggregate write-ins for other than invested assets                    161,195                        -           161,195


   Total assets                                            $      127,170,053      $         1,230,564 $    125,939,489




                                                          15
               LIABILITIES, SURPLUS AND OTHER FUNDS (NOTE 1)



Other expenses (excluding taxes, licenses and fees) (NOTE 2)   $       1,000

Unearned premiums (after deducting unearned premiums for
  ceded reinsurance of $1,034,130,016)                             63,423,967

Remittances and items not allocated                                    1,279

Aggregate write-ins for liabilities                                 6,418,304

     Total liabilities                                         $ 69,844,550

Common capital stock                                           $ 3,080,000

Gross-paid in and contributed surplus                              42,487,779

Unassigned funds                                                   10,527,160

Surplus as regards policyholders                               $ 56,094,939

     Total liabilities and surplus                             $125,939,489




                                           16
                               STATEMENT OF INCOME


                                   Investment Income

Net investment income earned                           $ 4,814,069

Net income before federal and foreign income taxes     $ 4,814,069

Federal and foreign income taxes incurred                 (582,122)

Net income                                             $ 4,231,947




                                            17
                         CAPITAL AND SURPLUS ACCOUNT

Surplus as regards policyholders, December 31, 1999                         $ 59,549,089

                      Gains and (Losses) in Capital and Surplus, 2000

    Net income, year ended December 31, 2000                  $5,226,112
    Change in non-admitted assets                                (93,386)
    Dividends to stockholders                                 (5,900,000)

Change in capital and surplus for the year                                     (767,274)

Surplus as regards policyholders, December 31, 2000                           58,781,815

                      Gains and (Losses) in Capital and Surplus, 2001

    Net income, year ended December 31, 2001                   $4,876,741
    Change in net deferred income tax                             110,710
    Change in non-admitted assets                               (351,474)
    Cumulative effect of changes in accounting principles         643,640
    Dividends to stockholders                                 (5,800,000)

Change in capital and surplus for the year                                     (520,383)

Surplus as regards policyholders, December 31, 2001                           58,261,432


                      Gains and (Losses) in Capital and Surplus, 2002

    Net income, year ended December 31, 2002                   $5,265,884
    Change in net deferred income tax                              61,006
    Change in non-admitted assets                               (186,400)
    Dividends to stockholders                                 (5,800,000)


Change in capital and surplus for the year                                     (659,510)

Surplus as regards policyholders, December 31, 2002                         $ 57,601,922



                                        <Continued>




                                             18
                         CAPITAL AND SURPLUS ACCOUNT
                                  CONTINUED




                      Gains and (Losses) in Capital and Surplus, 2003

    Net income, year ended December 31, 2003                   $5,220,679
    Change in net deferred income tax                            (60,873)
    Change in non-admitted assets                                 180,355
    Dividends to stockholders                                 (5,300,000)


Change in capital and surplus for the year                                      40,162

Surplus as regards policyholders, December 31, 2003                         $ 57,642,084


                      Gains and (Losses) in Capital and Surplus, 2004

    Net income, year ended December 31, 2004                  $4,231,947
    Change in net deferred income tax                          (160,801)
    Change in non-admitted assets                                 81,709
    Dividends to stockholders                                 (5,700,000)

Change in capital and surplus for the year                                   (1,547,145)

Surplus as regards policyholders, December 31, 2004                         $ 56,094,939




                                             19
     ANALYSIS OF EXAMINATION CHANGES TO SURPLUS


There were no changes to the Company’s surplus as a result of our examination.




                                    20
                                    GROWTH OF THE COMPANY

        The financial growth of the Company for the five year period ended December 31, 2004 was
as follows:


                         2004            2003             2002            2001            2000

Assets               $125,939,489   $ 128,317,103   $119,364,473      $ 127,260,586   $120,319,238

Liabilities            69,844,550      70,675,019        61,762,551     68,999,154      61,537,423

Policyholder
                       56,094,939      57,642,084        57,601,922     58,261,432      58,781,815
 Surplus

Net investment
                        4,814,069       6,493,516         6,300,444      5,730,715       5,997,322
 Gain

Net Income              4,231,947       5,220,679         5,265,884       4,876,741      5,226,112




NOTE:           Amounts in the preceding financial statements for the years ended December 31, 2000,
               2001, 2002, and 2003 were taken from the Company’s Annual Statements as filed with
               the Administration. Amounts for the years ended December 31, 1999 and December 31,
               2004 are amounts per examination.




                                                    21
                      NOTES TO FINANCIAL STATEMENTS



1. As described under the caption “Reinsurance,” all of the Company’s business in force
   when it was purchased by Government Employers Insurance Company (GEICO) in
   1982 was ceded under a loss-portfolio reinsurance treaty. Since that time, the Company
   ceded all of its direct premiums, primarily to GEICO. As a result, as of December 31,
   2004, the Company had ceded loss and loss adjustment expense reserves totaling
   $2,067,782,000 and had no retained loss or loss adjustment expense reserves. If the
   reinsurers are not able to meet their obligations under the Company's reinsurance
   agreements, the Company would be liable for any defaulted amounts.
   The methodologies utilized by the Company to compute reserves, and the adequacy of
   the loss reserves and loss adjustment expense reserves as of December 31, 2004, were
   reviewed by our actuary and were determined to be reasonable and adequate.

2. The Company and its affiliates are defendants in several class action lawsuits related
   to the use of collision repair parts not produced by the original auto manufacturers.
   Management intends to vigorously defend the Company's position over the use of
   these aftermarket parts. However, these lawsuits are in various stages of
   development and the ultimate outcome cannot be reasonably determined.

   In normal course of business, the Company is also involved in other litigation with
   claimants, beneficiaries and others. The Company believes that the total amounts that
   would ultimately have to be paid if any, arising from these lawsuits in excess of
   amounts currently reserved would not have a material effect on its financial position
   of the Company as of December 31, 2004.




                                           22
                    COMMENTS AND RECOMMENDATIONS

      There are no comments and recommendations included in this report. During our
examination, we made a number of suggestions and recommendations to the Company with
regard to record keeping and other procedures relating to its operations. However, these
suggestions and recommendations are deemed insignificant and immaterial for inclusion in
this report.




                                          23
                                SUBSEQUENT EVENTS

   There were no significant events occurring subsequent to our examination period that
required disclosure.




                                          24
                                       CONCLUSION

    Our examination disclosed that as of December 31, 2004 the Company had:

       Admitted Assets                                                $ 125,939,489

       Liabilities and Reserves                                       $ 69,844,550

       Common Capital Stock                                           $    3,080,000

       Gross Paid-in and Contributed Surplus                              42,487,779

       Unassigned Funds                                                   10,527,160

       Surplus as Regards Policyholders                               $ 56,094,939

       Total Liabilities and Surplus                                  $ 125,939,489


     In our opinion, the accompanying balance sheet properly presents the statutory financial
position of the Company as of December 31, 2004, and the accompanying statement of
income properly presents the statutory results of operations for the period then ended. The
supporting financial statements properly present the information prescribed by the Annotated
Code of Maryland, the Code of Maryland Regulations and the National Association of
Insurance Commissioners.

     Sections 4-103 to 4-105 of the Insurance Article of the Annotated Code of Maryland
specify the level of capital and surplus required for the Company. We concluded that the
company’s surplus funds met the minimum requirement during the period under
examination.




                                             25
                                   SIGNATURES


     In addition to the undersigned, the following examiners representing the Maryland
Insurance Administration participated in certain phases of this examination:


              Novalene Forbes, CFE, Maryland Insurance Administration
              Charles Igwilo, AFE, Maryland Insurance Administration
              Sam Merlo, Maryland Insurance Administration
              Puru Shrestha, Maryland Insurance Administration
              Moses Taylor, AFE, Maryland Insurance Administration
              Kim Bey, RSM McGladrey Inc.
              Derek Butler, CFE, RSM McGladrey Inc.
              Rudy Fabry, RSM McGladrey Inc.
              Sarah Lucibello, RSM McGladrey Inc.


  The actuarial portion of this examination was completed by Joel S. Chansky, FCAS,
MAAA, Mary Ann Grzyb, and Christine Fleming, actuaries with the firm of Milliman, Inc.




                                   Respectfully submitted,


                                   ___________________________
                                   Craig A. Moore, CFE
                                   Examiner-in-Charge
                                   Maryland Insurance Administration
                                   Representing the Northeastern Zone


                                   Under the supervision of,


                                   ___________________________
                                   Jeffrey Lieman, AFE
                                   Chief Examiner
                                   Maryland Insurance Administration




                                         26
ROBERT L. EHRLICH, JR.                                                               R. STEVEN ORR
      Governor                                                                        Commissioner

 MICHAEL S. STEELE                                                                JAMES V. MCMAHAN, III
    Lt. Governor                                                                    Deputy Commissioner

                                                                                    LESTER C. SCHOTT
                                                                                   Associate Commissioner
                                                                                  Examination and Auditing

                             525 St. Paul Place, Baltimore, Maryland 21202-2272
                               Direct Dial: 410-468-2120 Fax: 410-468-2101
                                  Email: jlieman@mdinsurance.state.md.us
                                   1-800-492-6116 TTY: 1-800-735-2258
                                        www.mdinsurance.state.md.us

                                            April 27, 2006


      Olza M. Nicely
      President
      GEICO General Insurance Company
      5260 Western Avenue
      Chevy Chase, Maryland 20815

      Dear Mr. Nicely:

          Enclosed is a draft copy of the Report on Examination of the affairs and financial
      condition of GEICO General Insurance Company, as of December 31, 2004, dated
      January 12, 2006. Please call our attention to any errors or omissions.

           Unless a written request for a Hearing with respect to the Report (in accordance with
      the provisions of Sections 2-209 and 2-210, Insurance Article of the Annotated Code of
      Maryland) is received on or before May 29, 2006, the Report will become final, and will
      be filed as a public document within this Administration.

         If this Report on Examination contains a section entitled “Comments and
      Recommendations” that discloses certain areas requiring action, the Company shall
      submit a statement covering the corrective measures which will be taken.

          If the Company’s position on any of these points is contrary to the Examiner’s
      findings, an explanation should be submitted covering each contested comment and/or
      recommendation.

          All of your comments concerning these matters must be in writing and shall be
      furnished to this Administration within thirty (30) days from the date of this letter (May
      29, 2006). In addition to the hard copy mailed to the Administration, also please
      send our response electronically in Microsoft Word format to
      pgiles@mdinsurance.state.md.us.
     The Report on Examination should be called to the attention of your Board of
Directors at its next meeting. Each Director should review the Report and acknowledge
such review over his signature. Documentation of such review should be maintained for
future verification.

    If you have any questions or if you would like to discuss this recommendation,
please do not hesitate to call me at 410-468-2120.

                                                 Sincerely,

                                                 Original Signature on File

                                                 Jeffrey Lieman, CPA, AFE
                                                 Chief Examiner
ROBERT L. EHRLICH, JR.                                                               R. STEVEN ORR
      Governor                                                                        Commissioner

 MICHAEL S. STEELE                                                                JAMES V. MCMAHAN, III
    Lt. Governor                                                                    Deputy Commissioner

                                                                                    LESTER C. SCHOTT
                                                                                   Associate Commissioner
                                                                                  Examination and Auditing

                             525 St. Paul Place, Baltimore, Maryland 21202-2272
                               Direct Dial: 410-468-2120 Fax: 410-468-2101
                                  Email: jlieman@mdinsurance.state.md.us
                                   1-800-492-6116 TTY: 1-800-735-2258
                                        www.mdinsurance.state.md.us

                                             June 1, 2006



      Olza M. Nicely
      President
      GEICO General Insurance Company
      5260 Western Avenue
      Chevy Chase, Maryland 20815


      Dear Mr. Nicely:

          We are in receipt of a letter from William J. McDonald, Controller, dated May 22,
      2006, which addresses the corrective action taken by GEICO General Insurance
      Company, to comply with the recommendations made in the Report on Examination as of
      December 31, 2004, dated January 12, 2006. Your response adequately addresses the
      recommendations made in the Report.

          To the extent deemed necessary, we have made the corrections suggested in Mr.
      McDonalds’ letter. During our next examination of the Company, we will review the
      implementation of the corrective actions taken.

           As the May 22, 2006 letter did not request a hearing, pursuant to § 2-209 of the
      Insurance Article, Annotated Code of Maryland, the Report is Final and is attached for
      your records. The Report will be forwarded electronically, along with a copy of this
      letter, to each Commissioner whose name is set forth on Page 1 of the Report, as well as
      to each of the participating zone examiners, to the National Association of Insurance
      Commissioners, and to each state in which the Company is licensed, according to your
      Annual Statement.

                                                             Sincerely,



                                                             Jeffrey Lieman, CPA, AFE
                                                             Chief Examiner

				
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