The Delaware Department of Insurance (DDOI), State Farm Fire and Casualty Company has been ordered to review its underwriting for Delaware’s coastal region. Also ordered was an adjustment in language included in non-renewal notices distributed by the company.
Following State Farm’s decision to cancel 509 of its more than 127,000 property policies in Delaware, the department conducted a Market Conduct Examination,
The Market Conduct Examination determined no unfair discrimination in s underwriting decisions. However, the report did find that the non-renewal notices did not contain all the statutorily required information for consumers.
State Farm will pay a $150,000 penalty, suspend coastal non-renewals for a period of three years and agree to include additional information on future coastal non-renewal notices.
Upon completion of the market conduct examination, Commissioner Karen Weldin Stewart said, “Our mission at the department emphasizes our role as a consumer protection agency. A resolution such as this, demonstrates our commitment to safeguarding Delawareans from any unfair insurance practices. I am extremely happy with this outcome.”
“We take our responsibilities to Delaware customers very seriously. Along with our responsibility to help our customers manage the risks of everyday life, we also have an obligation to provide timely information on non-renewals, including the reasons behind our business decisions that impact our policyholders, and their options while facing a non-renewal,”said State Farm’s Public Affairs Specialist Anna Bryant. “We worked with the Delaware Department of Insurance during this examination and reached an outcome that protects Delaware consumers and allows State Farm to manage its business effectively.”
State Farm Fire and Casualty Company is a member of the State Farm Holding Company Group and is a wholly owned subsidiary of State Farm Mutual Automobile Insurance Company, the nation’s largest automobile insurer. The State Farm Holding Company offers multiple lines multiple lines of property, casualty and life and health insurance throughout the U.S.
State Farm has more than 60 agents in Delaware.
