‘Storm Protection‘ Bill...To Insure Poor Risks
Wednesday, February 9th, 2000 PropertyA bill designed to protect homeowners hit by a storm could adversely affect most other customers of the insurance company involved, says the National Association of Independent Insurers (NAII). The bill, HB 2649, would prohibit an insurance company from canceling or non-renewing a homeowner‘s policy for three years after a claim was filed for a loss caused by a windstorm, hailstorm or other act of nature. "As the bill is written, an insurance company would have to keep insuring individuals for three years no matter the person‘s claims history simply because they had a windstorm loss," Hanson told the state Insurance Committee. "The bill would force insurers to do something that insurance is not meant to do - insure a known bad risk. The effect would be to discourage new insurance companies from doing business in the state, or from offering new coverages, which will leave consumers with fewer options.
