Major Insurer Reverses Course After Commissioner King’s Involvement
ATLANTA – Insurance and Safety Fire Commissioner John F. King announced today that Farmers Insurance has rescinded tens of thousands of nonrenewal notices to Georgia consumers initially scheduled to go into effect in August.
“It was brought to our attention this week that Farmers Insurance had alerted their customers that they would be non-renewing any homeowner policies on homes with roofs over 15 years old in blatant violation of Georgia law,” said Commissioner King. “My office immediately took action, ordering Farmers to reverse course and rescind these scheduled non-renewals. I am extremely disappointed with the actions of Farmers and am contemplating further disciplinary actions at this time.”
Under Georgia law, insurers are only allowed to change their underwriting guidelines for new business and cannot non-renew existing customers under new guidelines. Violations of Georgia insurance law are subject to monetary fines from the Insurance Commissioner’s Office, among other penalties.