Agents and carriers don’t tell their customers that they’ll inspect to see if they ever wanted to insure them in the first place after issuing a policy. In California, the law gives this right to residential and commercial carriers. In residential claims, we often see carriers lure insureds away from a competitor with cheaper premium pricing, fail to fully investigate the adequacy of the risk during the application process, proceed to issue a policy, and then cancel after issuance and an underwriting inspection. By this time, the insured has typically already cancelled their policy with their prior insurer.
Continue Reading Your Insurer Can Issue You a Policy While Planning to Underwrite it Later

Last week, I blogged about how California’s Department of Insurance issued a one-year moratorium to insurance companies to stop their practice of non-renewing and cancelling homeowner’s insurance coverage for policyholders living near major wildfires.1 But what if your carrier sent you a cancellation just prior to the moratorium – does the moratorium apply retroactively to restore your coverage?
Continue Reading Is California’s Moratorium on Insurance Policy Non-Renewals or Cancellations Retroactive?

Picture this. You have retained counsel to assist in enforcing your claim under your insurance policy. After a favorable appraisal, and payment of that award by the insurer, you receive a notice of nonrenewal stating that the insurer is electing not to renew the policy as “the risk no longer complies with underwriting guidelines.”
Continue Reading Policyholders’ Potential Bad Faith Claim for a Retaliatory Nonrenewal

This past weekend I was asked the question above. This is what I found in Louisiana. On March 26, 2020, by Proclamation No. JBE 2020-37, Louisiana Governor John Bel Edwards transferred certain insurance matters to Commissioner of Insurance James J. Donelon. Commissioner Donelon quickly instituted reasonable emergency measures to address the growing concerns of Louisiana’s residents through Emergency Rule 40 – Moratorium on Policy Cancellations and Non-Renewals for Policyholders in Louisiana during the Outbreak of Coronavirus Disease (COVID-19) (“Rule 40”).1
Continue Reading Louisiana–COVID-19 Pandemic Relief: My Mortgage is Deferred, What about My Insurance Premiums?

Many Policyholders in Puerto Rico are concerned about the notifications of non-renewal or cancellations they received after Hurricane Maria claims. This is a matter that affects both residential and commercial Policyholders. The process of obtaining insurance coverage from a different insurance company can be even more difficult when repairs related to a prior claim have not been completed.
Continue Reading Non-Renewal or Cancellations of Commercial Insurance Policies in Puerto Rico after Hurricane Maria

After Hurricane Michael, on October 15, 2018, Florida Insurance Commissioner David Altmaier issued an Emergency Order No. 234790-18-EO, that affected insurers writing insurance in the following counties affected by Hurricane Michael: Bay, Calhoun, Franklin, Gadsden, Gulf, Hamilton, Holmes, Jackson, Jefferson, Leon, Liberty, Madison, Suwannee, Taylor, Wakulla, and Washington Counties.
Continue Reading Cancellation of Property Insurance Policies in Florida after Hurricane Michael

In August, I wrote a blog post about an insurer who had violated section 143.17a(a) of the Illinois Insurance Code by failing to provide adequate notice of their intention to non-renew a policy. As a result of its failure to timely provide notice of the intent to non-renew, the insurer was required to renew the expiring policy under the same terms and conditions for an additional year. Two days after issuing the renewal policy, the insurer issued a Notice of Cancellation citing the reason for the cancellation as “Underwriting Reasons: Measurable increase in risk.” This notice provided more than 60 days’ notice.
Continue Reading “Measurable Increase in Risk” Is Not Specific Enough Reason for Policy Cancellation