New York Superintendent of Insurance Gregory Serio announced that an investigation has determined that the New Hampshire Insurance Company reportedly illegally collected premiums for terrorism insurance on approximately 600 New York City homeowners polices.
“As a result of our investigation, the insurer has refunded the additional premium, returning over $500,000 in premiums,” said Serio. “The Department remains vigilant about ensuring that the federal Terrorism Risk Insurance Act (TRIA) is implemented to the letter of the law and encourages all insurance consumers with homeowners policies to review their policies and make sure they are not be charged for the included terrorism coverage.”
Under TRIA, any insured property that has less than 4 units is considered a personal lines policy and terrorism insurance is automatically included in the policy. The insurer is not permitted to charge an additional premium for terrorism coverage.
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