Under agreements between the Texas Office of Public Insurance Counsel (OPIC), the Texas Department of Insurance, and two subsidiaries of the Hartford Financial Services Group, Texas consumers with homeowner insurance from the Property and Casualty Co. of Hartford or the Hartford Lloyds Insurance Co. can expect a rate reduction. The reductions result from action taken by TDI over rate filings made in October and November 2009 by Hartford P&C and Hartford Lloyds.
The Hartford P&C filing indicated a rate increase of 15 percent for its HO-2 and HO-3 policies, effective Nov. 7, 2009, for new business, and for renewals beginning Dec. 24, 2009. The company agreed to reduce the increase by 10 percent and not to raise rates prior to Jan. 29, 2011, “except upon a showing of extraordinary unforeseen circumstances.” Hartford P&C also agreed to increase its credit for the wind/hail exclusion from 30 percent to 40 percent. That change has an effective date of Aug. 7 for new business and Sept. 24 for renewals.
The Hartford Lloyds filing included a rate increase of 6.8 percent for policy forms HO-A and HO-B, effective Oct. 3, 2009, for new business and Nov. 25, 2009, for renewals. The company agreed to reduce the overall rate in the filing by 3.1 percent, resulting in a 3.5 percent increase. The companies are to file new rates by July 30, 2010, to implement the reductions.
Policyholders also will receive refunds for the overcharges the companies collected since Jan. 29, 2010, plus 9.25 percent interest. Policyholders can expect a refund by Dec. 30, 2010.
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