The Tennessee Department of Commerce and Insurance announced that Exchange Insurance Company is currently mailing checks to over 5,000 of the company’s insureds as reimbursement for their unused premiums.
As a result of financial instability, Exchange is in the process of winding down its business under supervision of the department. It has been a major writer of homeowners insurance for low-valued housing in the state, with 23,000 insureds. In late March, Exchange cancelled around 5,000 policies in Tennessee and discontinued writing new business or renewing policies.
Some of the refund checks will go to the policyholder and some will go to the insured’s mortgage company, where applicable. About 5,300 policies are being mailed, including policies terminated March 28 and others that were cancelled in the normal course of business.
The department began supervision of the troubled company in December 2002. Exchange negotiated with National Lloyds Insurance Company for that insurer to take over all retained liability incurred after April 1, for those policies still in place. Lloyds has the option of renewing those policies according to its own guidelines as they come to term.
Topics Tennessee
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