SE Commissioners Urge Insurers to Address Claims Denials and Policy Cancellations
This week, insurance commissioners from two Southeastern states issued strong warnings to property insurers regarding improper policy cancellations and claims denials. Following severe winter storms that impacted the South earlier this week, Commissioner Carter Lawrence and Tennessee Attorney General Jonathan Skrmetti emphasized the necessity for carriers to “fulfill their contractual and legal obligations.”
In their announcement, the officials stated, “If any company should fail to do right by its customers, if it wrongfully denies claims or otherwise engages in unfair practices, we will not hesitate to act.” However, they did not clarify what specific actions might be taken against non-compliant insurers.
For policyholders who believe their claims related to the storm have been unjustly denied, the bulletin directed them to file a complaint through the Tennessee Department of Commerce and Insurance website. The bulletin did not disclose what prompted this memo or how many complaints have been received so far this year.
Tragically, reports indicate that as many as 23 individuals have lost their lives in Tennessee due to the winter storms, with causes ranging from auto accidents to falling trees and extreme cold. Residents have also reported significant damage from burst pipes and falling limbs. Across the region, estimates of insured losses from these storms have soared to as high as $8 billion.
In Alabama, Insurance Commissioner Mark Fowler updated a December bulletin, reiterating that it is illegal for carriers to cancel or non-renew property or automobile policies solely due to claims arising from catastrophic events. Additionally, policies cannot be canceled based on losses unrelated to the specific line of business covered.
Insurers are also prohibited from imposing premium surcharges or placing policyholders in a higher rating tier as a result of such claims. The latest memo extends these protections to new policies written after March 14, 2026, and for renewals after May 14. However, the bulletins do not prevent cancellations or non-renewals due to misrepresentation or fraud by the insured.
The Department of Insurance did not provide a specific reason for issuing these bulletins, but the urgency of the situation is clear.
Photo: Nashville saw its share of snow and ice on Jan. 24. (AP Photo/George Walker IV)
Interested in Carriers?
Get automatic alerts for this topic.
This week, insurance commissioners from two Southeastern states issued strong warnings to property insurers regarding improper policy cancellations and claims denials. Following severe winter storms that impacted the South earlier this week, Commissioner Carter Lawrence and Tennessee Attorney General Jonathan Skrmetti emphasized the necessity for carriers to “fulfill their contractual and legal obligations.”
In their announcement, the officials stated, “If any company should fail to do right by its customers, if it wrongfully denies claims or otherwise engages in unfair practices, we will not hesitate to act.” However, they did not clarify what specific actions might be taken against non-compliant insurers.
For policyholders who believe their claims related to the storm have been unjustly denied, the bulletin directed them to file a complaint through the Tennessee Department of Commerce and Insurance website. The bulletin did not disclose what prompted this memo or how many complaints have been received so far this year.
Tragically, reports indicate that as many as 23 individuals have lost their lives in Tennessee due to the winter storms, with causes ranging from auto accidents to falling trees and extreme cold. Residents have also reported significant damage from burst pipes and falling limbs. Across the region, estimates of insured losses from these storms have soared to as high as $8 billion.
In Alabama, Insurance Commissioner Mark Fowler updated a December bulletin, reiterating that it is illegal for carriers to cancel or non-renew property or automobile policies solely due to claims arising from catastrophic events. Additionally, policies cannot be canceled based on losses unrelated to the specific line of business covered.
Insurers are also prohibited from imposing premium surcharges or placing policyholders in a higher rating tier as a result of such claims. The latest memo extends these protections to new policies written after March 14, 2026, and for renewals after May 14. However, the bulletins do not prevent cancellations or non-renewals due to misrepresentation or fraud by the insured.
The Department of Insurance did not provide a specific reason for issuing these bulletins, but the urgency of the situation is clear.
Photo: Nashville saw its share of snow and ice on Jan. 24. (AP Photo/George Walker IV)
Interested in Carriers?
Get automatic alerts for this topic.
