Our Companies

Truck Insurance Exchange 2019 Update

Dear Fellow Truck Insurance Exchange Member:

Now that we begin our ninth decade, Farmers Insurance Group® continues to provide its customers with coverage options to help them manage risk and meet their insurance needs. We strive to deliver the best value and experience to every customer we're privileged to serve. Farmers® appreciates your business and looks forward to continuing to earn your confidence for many years to come.

Truck Insurance Exchange is one of the insurers comprising Farmers Insurance Group. Truck Insurance Exchange along with Farmers Insurance Exchange and Fire Insurance Exchange, and their subsidiaries and affiliates, provide automobile, homeowners, personal umbrella and business owners insurance. For more information, please visit farmers.com.

Recent Developments

  • In August 2018, Farmers agents began writing business in Florida – our 36th state. The Florida launch is an exciting opportunity to expand the Farmers brand to a new market.

  • Farmers launched Toggle S M, an innovative, millennial-centric brand in Illinois and Wisconsin in the fourth quarter of 2018. Toggle re-imagines the insurance buying journey by offering a fully digital insurance subscription service, providing members with simple, affordable and customizable solutions to fit their lifestyles.

  • Following a significant year of weather-related Catastrophes, and to further support our industry-leading Catastrophe Response Team, Farmers recently unveiled a state-of-the-art Mobile Claims Office at the 2019 Farmers Insurance Open®. The newly designed Mobile Claims Office, will provide enhanced resources to serve our customers impacted by catastrophes.

Community Involvement

Farmers is committed to serving the communities where we live and work with a focus on supporting disaster preparedness, response and recovery programs in affected communities through key non-profit partners which include the American Red Cross, Operation B B Q Relief, S B P and Team Rubicon.

Your Voting Rights

As a member of Truck Insurance Exchange, you have the right to vote for representatives of the Exchange Board of Governors, and approve amendments to the Exchange Rules and Regulations (“R&R”). You may vote in person at the 2020 Annual Meeting of Members of Truck Insurance Exchange or you may appoint a proxy to act on your behalf by executing and returning your proxy postcard. Additional information on Truck Insurance Exchange can be found in the F A Q below. Proposed revisions to the Exchange R & R can be located at the bottom of this page.  While the Board of Governors has the authority to amend the R & R, due to the number of changes, member approval is also being sought this year. 


Donald E. Rodriguez
Chair of the Board of Governors of Farmers Insurance Exchange

Frequently Asked Questions

As a member of Truck Insurance Exchange, we want you to understand the basics of the operation of an Exchange because, as you will see below, you are an owner of the Exchange.

What is an Exchange?

An Exchange is an insurance organization, which operates in most ways like any other insurance company, but with a few key differences. Truck Insurance Exchange was organized under a provision in the California Insurance Code, which allows insureds to "exchange" policies with other insureds. Because the insureds cannot practically be involved in actually issuing policies, collecting premium, paying commissions to agents, etc., they appoint a third party - called an "attorney-in-fact" (AIF) - to perform those duties on their behalf for a fee. That appointment is made through a document called a "Subscription Agreement." You were asked to sign a Subscription Agreement at the time you applied for insurance with Truck Insurance Exchange and that is how you became a member (aka subscriber).

Who owns the Exchange?

You do. Subscribers of the Exchange are owners until such time as they no longer have insurance from the Exchange. Subscribers elect a Board of Governors which supervises the financial affairs of the Exchange and the performance of the A I F in conformity with the Subscription Agreement terms.

Why is an A I F fee paid to Truck Underwriters Association (TUA)?

Under the Subscription Agreement mentioned above, members appoint T U A to perform certain of the tasks, such as policy issuance and collection of premium, which are involved in running an insurance operation. The Subscription Agreement specifies an A I F fee of 20 percent of premium, although T U A has taken less than that amount.

What is T U A?

T U A is a wholly owned subsidiary of Farmers Group, Inc. (FGI), which is part of the Zurich Insurance Group, Ltd (ZIG), a Swiss company. Neither T U A, F G I nor Z I G has any ownership interest in Truck Insurance Exchange, which is owned by its subscribers (insureds).

How was your premium dollar spent by Truck Insurance Exchange in 2017?

Your premium dollar covers Exchange costs including losses incurred, acquisition costs, taxes, license fees, the A I F fee, and any contributions to surplus. For 2017, the A I F fee was 14.9 percent of the premium dollar, which included the A I F profit of 6.85 percent of the premium dollar for that year. The results of the Truck Insurance Exchange were impacted by the large number of catastrophe losses but the company still maintained a strong capital base with surplus of $641 million.

Can the Exchange lose money?

If premiums collected exceed claims payments and other expenses (including the fee for the A I F), then the Exchange retains those net premium earnings (as contributions to surplus). If premiums are not sufficient to cover claims and expenses, the Exchange will lose money. That's one reason it is important to build a cushion against possible future losses. The A I F does not participate in claims losses and does not enjoy any net premium earnings. Importantly, subscribers are not responsible for any losses the Exchange might suffer.

Where can I get more information about the Exchange?

You can go to www.farmers.com/about-us for most questions. If you have additional questions, please contact:

Subscriber Relations Office
Truck Insurance Exchange
Attn: Corporate Secretary
P.O. Box 4461
Woodland Hills, CA 91365