The Surplus Lines Law Group will hold its bi-annual meeting on April 26-27, 2012 in Las Vegas, Nevada. This group provides a forum for national discussion of issues impacting the surplus lines industry. Among the topics on the group’s agenda will be the MIA’s recent assertion that it may exercise jurisdiction over surplus lines carriers with respect to windstorm deductibles, and the industry’s concerns relating to that decision. Jason Fetterman is scheduled to speak on this topic on April 27th.
On January 25, 2012, the Court of Appeals issued a decision in the case of People’s Insurance Counsel Division v. Allstate Insurance Company, CA No. 60, September Term, 2011 holding that Section 27-501 of the Insurance Article prohibiting discrimination in underwriting applies to cases in which an insurer wishes to cease writing new policies in a certain area of the State.
In 2006, Allstate made a business decision to stop writing property policies for homes located within certain hurricane bands. Following various procedural maneuvers, the Insurance Commissioner held hearings concerning Allstate’s decision, and determined that, in its opinion, Allstate was required to comply with Section 27-501’s prohibitions on underwriting discrimination, and had the burden of establishing. The Commissioner ultimately determined that Allstate met its burden. The People’s Insurance Counsel Division disagreed. Allstate asserted that Section 27-501 was not applicable, but if it were, it met its burden. Read more