Curiale Rejects Travelers' Filing For 20% Hike In L.I. Homeowners Rates; Renewal Notices Had Been Sent.

• Position: LOOKING BACK INSURANCE ADVOCATE - 25 YEARS AGO

Superintendent of Insurance Salvatore R. Curiale announced November 1 that the Insurance Department has rejected a Travelers Insurance Company plan to raise its homeowners insurance rates on Long Island by over 20 percent. The department has instead ordered the company to keep its previously approved rates in effect.

Superintendent Curiale said: "The Department has carefully reviewed Travelers rate increase filing and found such large rate increases to be without merit. Travelers already made a business decision not to sell new homeowners policies on Long Island. However, under the Insurance Law, the company must guarantee renewals for its existing homeowners policies to provide coverage for at least three years. It now appears Travelers is attempting to raise renewal premiums excessively on Long Island in an attempt to convince its customers to look elsewhere for coverage. I will not tolerate such action."

Homeowners insurance rates in New York State are submitted on a "file and use" basis. This means, Curiale said, that if a company wants to increase its rates it must submit a filing to the Insurance Department. If the Department has no objections, the increase goes into effect on a specified date, he added.

In this case. Curiale noted, Travelers notified the department on September 30 of its intention to raise rales effective October I. However, since a homeowners insurer must provide the consumer with at least a 45-day notice of a pending increase, the earliest current policyholders could be affected is November 15. It should be noted, however, that...