Connecticut Attorney General Richard Blumenthal has submitted draft legislation to the General Assembly that would prohibit insurers from requiring that consumers install hurricane shutters as a condition of insurance.
The legislation would also require an insurer to notify existing policyholders when the company applies to the insurance commissioner for approval of new underwriting requirements that could cost homeowners more than $1,000.
Blumenthal said his proposed legislation “responds to a trend by insurers to impose onerous, expensive conditions – or cease writing policies altogether – in Connecticut and other coastal regions.”
He also said his office is continuing an antitrust investigation involving several companies at various levels in the insurance industry, including carriers, reinsurers, modelers and rating agencies.
“This legislation would help stop a storm of bad insurance policies battering Connecticut,” Blumenthal said. “Insurers are reaping record-breaking profits, but still shifting costs to consumers. They shirk risk by imposing expensive, extreme, and egregious conditions on homeowners. Forcing consumers to spend tens of thousands of dollars to install storm shutters is bad policy – and should be banned.”
He maintained that “consumers feel blindsided and bullied by insurance policy changes that may cost them tens of thousands of dollars. Policyholders deserve advance notice so they can act – at a minimum protest against approval by the insurance commissioner.”
Source: Conn. Attorney General Richard Blumenthal
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