Farmers insurance company forced to back out of non-renewable activities in Georgia

Insurance forced farmers to back off non-renewable activities in Georgia | American insurance business

The commissioner took action after a “flagrant violation” of state law

Farmers Insurance Company Forced To Back Out Of Non-Renewable Activities In Georgia

Farmers insurance has been forced to cancel tens of thousands of non-renewable notices for Georgia customers that were due to go into effect in August, according to the state’s Commissioner of Insurance Fire and Safety.

Commissioner John F. King said Farmers Insurance had told its clients that they would not renew homeowner policies on homes with roofs more than 15 years old, forcing his office to act on the basis of a “flagrant violation of Georgia law.”

“My office immediately took action, ordering growers to reverse course and cancel the scheduled non-renewal,” King said in a statement on the Insurance and Safety Commissioner’s Office website. “I am extremely disappointed with the farmers’ actions and am considering further disciplinary action at this time.”

The statement continued that under Georgia law, insurers are only permitted to change their underwriting guidelines for new business and cannot not renew existing clients under new guidelines.

Violations of Georgia’s 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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