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.

“Insurers are reaping record-breaking profits, but still shifting costs to consumers”, Blumenthal said. “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 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.

Bill Filed to Block Insurers from Requiring Storm Shutters (Insurance Journal 1/22/07)

January 26, 2007