Insurer Votes Not to Renew N.H. Woman’s Umbrella Over Political Activity

Helen Johnston is an 80-year-old retired pediatrician who hardly considers herself much of a risk for being sued.

That’s not how her insurance company sees it, however.

Johnston is losing extra coverage she bought years ago while she still practiced medicine–not because she’s a retired doctor, but because she is active in Francestown politics.

The Providence Mutual Fire Insurance Co. sent her a letter last month notifying her it is not renewing her $1 million umbrella policy next month due to “the political positions the insured holds.”

“If she was just a retired doctor, it wouldn’t be an issue,” said Dale Groves, vice president for underwriting for the Providence, R.I., company.

Johnston is vice chairwoman of her town’s Democratic committee and a member of the Hillsborough County Democratic Committee. She helps campaigns by distributing posters and making calls, and she held a get-out-the-vote session for Howard Dean at her house.

Groves said that’s enough.

“It’s a common practice within the industry not to cover that because of libel and slander (risks),” he said.

The nonrenewal letter prompted state Sen. Lou D’Allesandro, Rep. Claudia Chase and Rep. John DeJoie, all Democrats, to file legislation to require insurers to cover politicians.

“It’s a matter of First Amendment rights,” said DeJoie, of Concord.

DeJoie is reviewing existing law to see what if any protections there are for lawmakers. “I as a state legislator could conceivably lose my insurance,” he said.

Most likely, DeJoie and other lawmakers don’t have coverage now against libel and slander, Groves said. Such coverage isn’t standard under the home and auto policies most people have. Groves said companies including his sell separate coverage for personal injury claims to people who have less exposure to being sued. But politicians must find coverage elsewhere, he said.

The Providence renewed Johnston’s policies covering her home and car because they don’t cover libel or slander from her political activities, Groves said. But it would not renew her $1 million umbrella policy, which, as its name suggests, kicks in for claims not covered by the narrower policies.

Johnston probably could get coverage, but probably through a company that specializes in high-risk clients, said David Withers, actuary for the state insurance department.

Coverage decisions in New Hampshire are left up to insurance companies, with one exception: automobiles. Insurers must take all comers, though some drivers are put into a high-risk pool with higher rates, Withers said.

Johnston said she had nothing particular in mind when she bought her umbrella policy years ago.
“People thought doctors had a lot of money and I wanted coverage if my dog bit someone,” she said.

She said she got the nonrenewal letter after she filled out a questionnaire describing her activities.
“I don’t think it ever came up before,” she said.
“My main concern is–other than it seems terribly unjust–that they would use such a reason to not renew a policy after so many years,” she said. “People shouldn’t be penalized for their political activity.”

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Topics Carriers Legislation New Hampshire