The Tennessee Department of Commerce and Insurance announced that in December 2002, Exchange Insurance Company was placed into confidential supervision because of the company’s financial difficulties. The department is now going public with the order because of the need to cancel many of the company’s policies currently in force.
Exchange Insurance writes homeowners insurance in Tennessee and has about 23,000 insureds. It recently made important policy decisions in order to improve its financial condition, according to the department.
The Tennessee department approved the following changes to Exchange Insurance policies:
· The company will no longer reinstate policyholders who fail to pay their premiums on time.
· The company has discontinued writing new business.
· The company has sent 470 non-renewal notices to all policyholders whose policies expire in the first 10 days of April.
· The company has issued around 5,000 cancellation notices effective March 28 on all policies written through any agency whose contract has been cancelled.
Exchange Insurance will continue to operate in Tennessee under the above restrictions.
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