Legislative & community actions on coastal insurance in other states

Legislative Action

News & Commentary

NC takes aim at inequities in coastal insurance

Wilo Kelly, an advocate for insurance reform, and others say that coastal counties are carrying an unfair load of insurance premium increases partially as a result of faulty underwriting models. She worked with NC Sen. Cook to craft the legislation, which addresses numerous other aspects of property insurance.

The legislation takes aim at the type of models used to predict risk and set rates, Kelly said in an interview last week. It also would increase transparency in the rate-setting process and change how the North Carolina Insurance Underwriters Association handles premiums and reserves in the event of catastrophic losses.

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Posted 3/13/2015

MISSISSIPPI LEGISLATURE PASSES
CLARITY BILL

HHII has just (3/4/2015) learned the MS Clarity Bill passed both houses!! It now just needs the Governor's signature to become law. Congratulations to MAWIC, Rep. Richard Bennet, and other coastal legislatures for making this happen.

Posted 3/5/2015

HOMEOWNERS IN MASSACHUSETTS PETITION FOR DISCLOSURE ACT

A petition (accompanied by bill, House, No. 311) of Sarah K. Peake and others relative to homeowners insurance rate filings that include a charges for expected hurricane losses or catastrophes.

Posted 1/8/2013

Bill takes aim at Maryland coastal insurance

From 3/21/2012 article by Jeff Newman, Southern Maryland Newspapers

In the wake of a January ruling by the state’s highest court that affirmed Allstate Insurance Co.’s decision to deny new homeowners’ policies throughout coastal regions of the state, lawmakers are considering legislation that would beef up the standard insurance companies must meet before they can stop offering coverage in certain geographic areas.

Originally introduced in 2008, the bill is being sponsored by Del. Anthony J. O’Donnell (R-Calvert, St. Mary's), who told the House Economic Matters Committee during a March 15 hearing that he thought it was “appropriate and fitting” to revisit the issue following the Court of Appeals decision.

Following the destruction wrought by Hurricane Katrina along the Gulf Coast in August 2005, Allstate decided in 2007 to stop offering coverage to new homeowners across much of the mid-Atlantic, including all of St. Mary’s County, much of Calvert and Charles counties, most of the Lower Eastern Shore and chunks of Prince George’s and Anne Arundel counties. The company also has stopped writing new policies in parts of Virginia and Delaware.

Allstate used computer models and expert testimony to show it was in the company’s interest to stop writing homeowners’ policies in hurricane-prone regions of the state because the “catastrophic risk” involved went against the fundamental underpinning of most insurance — that overall risk diminishes as more policies are written.

The bill also would require the state’s insurance commissioner to approve any underwriting decision before companies could stop offering coverage in certain areas.

The “additional protections” would give state residents “confidence going forward that they will not be excluded from protecting what amounts to their life’s work and their life savings in their property,” he said.

Both the Maryland Insurance Administration, which introduced the 2008 bill, and the attorney general’s People’s Insurance Counsel Division, which advocates on behalf of insurance consumers, testified in support of the bill.

“We are finding that more and more insurers are restricting their writing on the Eastern Shore and Southern Maryland. This has become fairly routine,” Peter Killough said of the PIC. “It is simply too easy today for insurance companies to pick and choose who they’re going to give insurance to in this state. The standard is too low.”

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Posted 3/22/2012

MS Homeowners Insurance Bill of Rights

Posted 5/21/2011

CLARITY BILL INTRODUCED IN MS LEGISLATURE

Mississippi State Rep DeLano has introduced HHII Clarity Bill word-for-word into the Mississippi State Legislature.  Click to read summary of bills.

Posted 1/19/2011

LOUSIANA HOUSE COMMITTEES VOTE ON CLARITY BILL

Thanks to the presence of a large group of supporters from BISCO and HHII in the audience, HB 909 received a 7-3 vote of approval out of the Insurance Committee.

The room was filled with Insurance lobbyists and we were so pleased with the presentations of Rep. Chris Leopold, and Stacy and Mike. They did an awesome job in presentation. We were prepared with several parish presidents letters of support and BISCO staff and leaders as well as all GCII folks for all their hard work at getting the word and suport out and being in the audience for support. We had several of our collaborative partner organizations and lobbyists come in to the meeting room and place green cards of support. We are thankful for all those friends! We were assisted by our Oxfam representive Telly Madina, and lobbyists and could not thank them enough for all the back of the scenes work they did to get the support for the bill. Again, we could not have accomplished this without them. The team work was awesome!!!!!! Michelle and Dan confronted several insurance lobbyists letting them know they were from Alabama and here to defend the Clarity bill as being a success in Alabama. I think they succeeded in having them to the point that they did not bring up anything new so that they would not have to be called up to defend!!

Many prayers will still be needed to move this successfully through the legislature and onto the Governor's desk.

    Revised 5/8/2014

Louisiana Lawmaker Wants More Transparency
Of Homeowner Insurance

From insurancenewsnet.com 4/10/2014

Conventional wisdom holds that coastal Louisiana homeowners should pay higher home insurance premiums, because they cost insurance companies more money due to storm damage. One Louisiana lawmaker, though, would like the public to see actual numbers.

Data from nearby states reveals coastal homeowner insurance claims are actually less than claims made by inland homeowners. So, Rep. Chris Leopold (R-Belle Chasse) wants Louisiana insurance companies to file their losses and premiums by zip code and parish, as well as their number of policies in each area.

"The idea is to provide data to consumers to help them understand their property insurance premiums and to help determine if a proposed premium is in line," Leopold said, "My bill will require the commissioner of insurance to collect all the data on losses and premiums and post it annually on the Department of Insurance website."

Leopold's HB 909, scheduled for debate in the House Committee on Insurance Wednesday morning, mirrors a law already in effect in Alabama. The bill also requires the insurance commissioner to publish how insurance companies calculate their premiums.

Posted 4/10/2014

WSJ CITES HHII IN ARTICLE ON COASTAL INSURANCE

Coastal Residents Knock Insurers

Southeast Homeowners Say Hurricane Coverage Costs Too Much; Industry Cites Increase in Storms

Posted 1/5/2013

CHARLESTON, SC, POST-COURIER STORM OF MONEY SERIES

Click on this link to read a series of articles on South Carolina's insurance problems.  HHII is pictured in one.

Posted 2/16/2013

This page last modified 5/6/2015