Insurtech company, Lemonade, has received a Certificate of Authority to do business in Arkansas.
Lemonade Insurance Co. has been approved to sell property, casualty and marine products in Arkansas with an initial limit to renters insurance. A New York-domiciled property/casualty insurance company offering renters and home insurance policies, Lemonade was created in 2016 and is a wholly owned subsidiary of Lemonade Inc., a Delaware corporation.
Lemonade offers renters insurance through a mobile application.
In a statement Arkansas Insurance Commissioner Allen Kerr said “Lemonade is a company focused on using technology, artificial intelligence, and bots to innovate the insurance industry while promoting nonprofit giving through its annual ‘Giveback’ program of underwriting profits. I am proud to welcome Lemonade to the renters’ market in Arkansas.”
Lemonade is also a Certified B-Corp, where underwriting profits are contributed to nonprofits. The company receives a flat 20 percent fee, treating premiums as belonging to the policyholders. Lemonade returns “unclaimed money” during its annual Giveback. Giveback is a feature of Lemonade in which undistributed profits each year are donated to causes that customers elect. Lemonade is currently writing business in five other states and seeking to expand operations.
Kerr has granted authority to 28 new companies so far in 2017. Since becoming commissioner in 2015, Kerr has welcomed 63 new companies to Arkansas.
Source: Arkansas Insurance Department
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