Insurers would be forbidden from canceling homeowners’ policies without cause under a bill filed Thursday by state Sen. Trip Pittman, R-Montrose.
The legislation, first introduced last year, would prevent insurance carriers from canceling policies for homeowners who had not filed a claim in the preceding five years unless they had a “justifiable cause.”
The bill lists justifiable causes as failure to pay premiums, fraudulent methods of obtaining the policy, filing of a false claim, failure to maintain the property and “grounds as provided by the Commissioner of the Department of Insurance
Pittman’s bill would limit cancellation of homeowners’ policies
How can you be against BHO’s stimulus package and government interference in the markets but support this government interference in the insurance industry?
2 comments ↓
Chuck,
This bit of legislation is a bit different. The Insurance companies in Alabama, namely Farmers and ALFA supplement coverage elsewhere in the state, ie lower premiums, by charging higher ones here. Infact it was rather profitable until we had back to back hurricanes. They began cancelling policies on idividuals who had never made a claim. Some of which had held policies long enough that the amount paid in was more than damage to their homes during Ivan.
Mr. Pittman’s bill seeks to end the practice of arbitrary cancellations. Don’t be fooled by poor reporting, The insurance agencies have powerful lobbyists which will sway most of the democrats to kill this bill, and several others which our good senator Mr. Brooks of mobile has proposed as well.
This is great. We need more help like this to protect us from insurance companys. Someone should look at Farmers insurance to find out why they can sell other policies in Baldwin county but will not sell homeowners coverage. Why can’t we do what Florida is doing to State Farm and refuse to allow them to sell policys for auto, life, ect… unless they sell homeowners policies
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