Insurance Companies Get Warning from Regulator
New York, NY —
The state's top insurance regulator is warning insurance companies to stop muscling customers into purchasing more policies in order to renew their homeowners coverage.
REPORTER: Customers, especially in coastal areas such as Long island complained they were pressured to buy auto or life insurance to secure coverage on their homes.
State Superintendent of Insurance, Eric Dinallo explains the practice:
DINALLO: The person's had homeowners insurance with the companies sometimes for as long as twenty years and all of a sudden they are being told no and the reason is is because you have you auto insurance with turns out Geiko often and we want you to bring it to us and we aren't going to renew you unless you bring us your auto insurance.
REPORTER: Dinallo warned companies: Allstate and Liberty Mutual to cease the practice or risk fines or further legal action. A spokesperson for Liberty Mutual says after being warned, it agreed it stop the practice. Allstate says its current policies for rejecting renewals are legal.
