Winter Storms - Prohibition on Declination, Cancellation and Non-renewal Of Homeowners insurance Policies based solely as a result of Catastrophe(s)

CT state seal STATE OF CONNECTICUT INSURANCE DEPARTMENT BULLETIN PC-77 May 6, 2015 TO: ALL COMPANIES WRITING PROPERTY AND CASUALTY INSURANCE IN THE STATE OF CONNECTICUT RE: WINTER STORMS - PROHIBITION ON DECLINATION, CANCELLATION AND NONRENEWAL OF HOMEOWNERS INSURANCE POLICIES BASED SOLELY AS A RESULT OF CATASTROPHE(S) This Bulletin replaces the March 11, 2015 Advisory to all property and casualty insurers and is intended to remind all property and casualty insurers of recently enacted legislation under Connecticut General Statutes section 38a-316d concerning the prohibition on declining, cancelling or nonrenewing homeowners insurance policies based on losses incurred as a result of catastrophic winter storm events. Connecticut General Statutes section 38a-316d provides, in part, that the declination, cancellation or nonrenewal of a homeowners insurance policy is prohibited if the declination, cancellation or nonrenewal is based solely on any loss incurred as a result of one or more catastrophic events as declared by a nationally recognized catastrophe loss index provider. The Connecticut Insurance Department "Department" recently advised all property and casualty insurers by written notice dated March I 1, 2015 that covered losses caused by the perils of ice, wind , freezing or snow are to be coded using Catastrophe serial numbers assigned to Connecticut winter storms as set forth in the Insurance Services Office's (ISO) Property Claim Services ("PCS") Catastrophe Bulletins) (the "PCS Bulletins"). http ://www.ct.gov/cid/l ib/cid/CatastropheCodesWinter20 15.pdf Since the March 11, 2015 notice was issued, the Department has had conversations with insurers and PCS/ISO regarding claim reporting issues associated with coding snow melt and ice thaw losses resulting from winter catastrophes. The Department reiterates that insurers are responsible for properly identifying covered damage concurrently caused by catastrophic winter events so that those claims, which may fall outside specific catastrophe dates, may be properly excluded from underwriting decisions in accordance with Connecticut General Statutes section 38a-316d. The Department will continue to closely monitor all consumer complaints related to the declination, cancellation or nonrenewal of homeowner's insurance policies resulting from the winter storms or any other catastrophe occurring in Connecticut in the future. If you have any questions concerning this Bulletin, please contact George Bradner, Property Casualty Division Director at george.bradner@ct.gov or (860) 297-3866. \ UJ~ ~ v- Insurance Commissioner I PCS Bulletins related to Catastrophe Serial Nos. 63, 65, 66, 67 and 68 were extended to the State of Connecticut and assigned to 2015 winter storms. www.ct.gov/cid P.O. Box8l6 • Hartford,CT06l42-08l6 An Equal Opportunity Employer