Michigan’s OFIS Cites Company Violations of Home Insurance Laws

November 1, 2002

The Michigan Office of Financial and Insurance Services (OFIS) announced that it is investigating a number of consumer complaints into potential violations of Michigan’s homeowners insurance law.

The bulletin said it “has given Church Mutual Insurance Company, GE Property & Casualty Insurance Company, Sompo Japan Insurance Company of America, Sentry Insurance Company, the Hartford group of companies and Tokio Marine & Fire Insurance Company five days to write all Michigan consumers in compliance with state law or face enforcement action.”

It also said it was “investigating State Auto Mutual Insurance Company for allegedly telling consumers that they must insure both their home and auto with the company in order to be eligible for any coverage, another violation of state law.”

“In almost every instance, an insurance company writing individual homeowners policies should never tell a consumer that it will not cover them,” stated OFIS Commissioner Frank M. Fitzgerald. “Due to the large number of Michigan consumers shopping for home insurance rates and the knowledge they gained from the OFIS home insurance information, consumers are complaining to OFIS when this happens. While some corrections have been made to the guide, the more important issue is that OFIS is investigating some insurance companies that may be violating the law.”

The announcement also noted that All America Insurance Company and Central Mutual Insurance Company have notified OFIS that they are voluntarily leaving the Michigan market. “The companies would not offer coverage to all Michigan residents and faced enforcement action,” said the bulletin, but it said this would have little affect on the market in the state, as they wrote only 65 policies.

OFIS recently updated information in its home insurance buyers’ guide, including updated name and/or phone number information for six companies. “There was a tremendous response to the OFIS home insurance information – we have mailed over 3,500 copies of the guide and talked to consumers from all over Michigan who are successfully shopping for home insurance,” Fitzgerald stated. “Our home insurance web site and buyers’ guide are valuable tools that assist in the shopping process and OFIS will continually update that information to make it faster and easier to use.”

The OFIS home insurance information is available at www.michigan.gov/ofis or by calling OFIS toll free at 877-999-6442.

Topics Carriers Michigan Homeowners

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