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AL Commissioner Ridling Criticizes Bill to Force Insurers to "Show Cause" to Cancel

Alabama's insurance commissioner told lawmakers that he doubts insurance troubles along the coast would be eased by a bill forcing insurers to show cause before...
March 17, 2009

Alabama's insurance commissioner told lawmakers that he doubts insurance troubles along the coast would be eased by a bill forcing insurers to show cause before canceling homeowner policies. Jim Ridling's comments came during a hearing on the bill sponsored by state Sen. Trip Pittman, R-Montrose. Ridling said he was not certain that the bill would help with insurance-affordability woes.

The bill would require insurers to show cause when they want to cancel a policy that had been paid over five years without the policyholders filing a claim. Among the justifiable causes: failure to pay premiums; fraud in obtaining policies; filing of false claims; and failure to maintain properties.  David Majors, a State Farm spokesman who attended the meeting, said that the bill could lead insurers to pull out of the coast by preventing them from using risk to assess the viability of policies.

Commissioner Doubts Insurance Cancellation Limits (Mobile AL Press-Register 3/11/09)