Farmers Insurance forced to backtrack on nonrenewals in Georgia
Farmers Insurance forced to backtrack on nonrenewals in Georgia | Insurance Business America
Property
Farmers Insurance forced to backtrack on nonrenewals in Georgia
Commissioner took action following ‘blatant violation’ of state’s law
Farmers Insurance has been forced to rescind tens of thousands of nonrenewal notices to Georgia customers that were scheduled to take effect in August, according to the state’s insurance and safety fire commissioner.
Commissioner John F. King said that Farmers Insurance had alerted their customers that they would be non-renewing homeowner policies on homes with roofs over 15 years old, forcing his office to act on a “blatant violation of Georgia law.”
“My office immediately took action, ordering Farmers to reverse course and rescind these scheduled non-renewals,” King said in statement on the office of commissioner of insurance and safety fire’s website. “I am extremely disappointed with the actions of Farmers and am contemplating further disciplinary actions at this time.”
Under Georgia law, insurers are only allowed to change their underwriting guidelines for new business and cannot non-renew existing customers under new guidelines, the statement continued.
Violations of Georgia insurance law are subject to monetary fines, among other penalties.
The move comes amid recent exits from major carriers in states such as Florida and California.
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