Despite New Insurance Legislation, 25,000 Policies Cancelled This Week
Mar 8, 2007
Providing stark evidence that the legislation passed during the special session has not stabilized the insurance market, Nationwide Insurance became the first company to resume canceling policies. Insurance companies were prohibited by the new law from canceling policies until after filing required rate reductions. Nationwide, the state's fourth largest insurer, was the first to file its new rates, and then promptly mailed 25,000 non-renewal notices to policyholders. Its proposed rate reduction of 4.5 percent was substantially lower than the 24 percent cuts lawmakers and regulators have predicted. There are likely to be more cancellations to come as other companies file their new rates before the March 15 deadline.
News Coverage
St. Petersburg Times: Insurance Crisis Fixed? Check Your Mailbox
Miami Herald: Nationwide Won't Renew 25,000 Policies
More Information from CIVIC
Doug Wiles on Property Insurance Reform
Property Insurance Issue Paper