Thursday, April 01, 2010

Alabama issues bulletin removing diligent effort requirement for some policies in coastal areas

Because of difficulty in finding property coverage against damage from wind or hail in some coastal parts of the state, the Alabama Insurance Commissioner issued a bulletin in late March saying that the “diligent effort” requirements can be met without obtaining declinations in certain parts of the state.

The bulletin (No. 2010-01), from Commissioner Jim Ridling, outlines that declinations are not needed if the insured is seeking personal or commercial property insurance coverage against destruction of, or damage to, property caused by wind or wind events and hail, and if the property to be insured is located within an area in Baldwin or Mobile County, south of the southern right-of-way line of Interstate 10.

The department said the bulletin is intended to be temporary and the producer or surplus lines broker is expected to verify and document that a proposed risk satisfies both criteria.

No comments: