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Travelers Cancels Plan to Reduce Commissions in Georgia

St. Paul Travelers has decided to cancel a plan to reduce commissions to agents selling homeowners insurance in six Georgia counties. The decision came...
February 13, 2007

St. Paul Travelers has decided to cancel a plan to reduce commissions to agents selling homeowners insurance in six Georgia counties.  The decision came after a hearing order was issued by Georgia Insurance Commissioner John Oxendine, which alleged that the company was actually attempting to reduce its exposure along the Georgia coast in violation of a state law that does not allow a company to non-renew business in an area of the state unless it is withdrawing from the state completely.

Travelers spokesperson Jennifer Wislocki said that the company, which writes 7.4 percent of Georgia's homeowners insurance, would work with the commissioner to remain a "positive participant in the Georgia insurance market."

"In Georgia, you cannot non-renew business unless you're going to leave the whole state," Oxendine said. "You can't say you're going to dump the people on the coasts." Oxendine ordered a hearing later this month to investigate Travelers' plan, but canceled it when Travelers said it had reconsidered. "They came in and they were very nice and cooperative," Oxendine said.

Insurer Drops Plan to Cut Some Agent Commissions (St. Paul Pioneer-Press 2/3/07)

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