Perone Supports 90-Day Moratorium
Insurance Companies Changing Underwriting Guidelines
by Chris Perone
Sep. 8, 2006

State Representative Chris Perone (D-Norwalk) says insurance companies thinking of cancelling policies, raising deductibles, or requiring the installation of storm shutters along the shoreline should abide by Insurance Commissioner Susan Cogswell's 90-day moratorium.

"Residents in Norwalk are getting the rug pulled out from under them," said Rep. Perone. "These insurance companies do not realize, or do not want to think about the financial burden they place on Connecticut shoreline homeowners. There needs to be a better process associated with changing homeowner insurance policies and this moratorium will help us decide how to help residents."

Andover Insurance Company, which decided to discontinue approximately 2,000 Connecticut policies unless homes within three-fourths of a mile from Long Island Sound or a major river got shutters, has agreed to the moratorium.

According to a written statement, Cogswell had notified insurers that any action to advise agents not to sell policies to coastal homeowners is a violation of state law and would be the basis for enforcement action by the Insurance Departments. Attorney General Richard Blumenthal also recently subpoenaed nine insurers and two re-insurers for his own antitrust investigation into coastal insurance problems.

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