State Regulators Concerned Insurance Carriers Are Quietly Exiting Lines of Business
It has been heavily covered in national news media that property & casualty insurers have been withdrawing from certain business lines, in particular homeowners, in states such as California, Florida, Louisiana, and Texas. Other states around the country are also experiencing heightened numbers of insurance carriers exiting some markets. In response states have been addressing different aspects of insurance carrier withdrawal in various ways. For instance, last fall, Connecticut issued a Bulletin which requires property & casualty insurers that discontinue or substantially reduce “writings in a line or subline” to provide prior notice to the state insurance regulator. Earlier this year, Iowa extended the consumer notice period for renewals and non-renewals of personal lines policies from 30 days to 60 days. This spring, the Delaware Department of Insurance (the “Department”) raised the issue of “carriers quietly exiting lines of business” while the New Mexico Office of Superintendent of Insurance (the “OSI”) proposed a regulation which would impose on property & casualty insurers prior notice to OSI when discontinuing products in the state.
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