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?
In 2019, Merlin Law Group’s California offices received calls almost daily from insureds who were “dropped” by their homeowners insurance company (i.e., non-renewed). The reason insurers are providing? Unsurprisingly: increasing risks of wildfires. In November 2019, Ricardo Lara, the California Insurance Commissioner, exercised his powers to place a one-year moratorium on cancelling insurance policies related to wildfire risk. Earlier in the month, Lara ordered the FAIR Plan—a quasi-governmental insurer-of-last-resort for people who can’t get insurance elsewhere—to sell the same kind of policies for which Californians once had no problem qualifying.1
Continue Reading Has Your Homeowners Insurance Been Cancelled? What California’s One-Year Moratorium on Homeowners Policy Non-Renewals Means for You
On May 24, 2019, The Oklahoma Insurance Department issued Amended Bulletin No. 2019-Exec-01, protecting victims of severe weather in Oklahoma.
Continue Reading Oklahoma Insurance Commissioner Protects Storm Victims from Insurer Policy Cancellations
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
The Texas Department of Insurance (“TDI”) has issued a number of bulletins specific to Hurricane Harvey. These bulletins do no create new law, but provide TDI’s interpretation of the law, and lay out the expectations TDI has for carriers.
Continue Reading Hurricane Harvey Claims Should Not Lead to Policy Cancelations or Non-Renewals
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
All too often following a loss, insureds are a faced with another shock when they open their mail and find a notification that the insurance company is not renewing their policy at the end of their existing policy term. Recently my colleague Edward Eshoo and I represented a policyholder facing this very situation. The insured was already fighting the insurance company for benefits under the policy and now in the midst of a loss was being told that at the end of the current policy period the insurance company would not be renewing the policy. While insurance companies have the right to non-renew or cancel coverage, there are strict requirements governing when how and when they may do so.
Continue Reading Insurer’s Non-Renewal Notification: Too Little, Too Late
One of the biggest complaints I hear from homeowners after suffering a property insurance loss emerges out of the insurer’s “cancellation” or failure to renew the policy after the loss occurs. After suffering a loss, the thought of trying to get new insurance while the loss has not been completely resolved is a devastating and stressful blow to an insured. Purchasing new insurance while a loss has not been fully remediated and repaired is expensive and difficult.
Continue Reading Cancellation of Homeowner’s Insurance After a Loss