Advocate Wants Investigation Into “Unfair” Insurance Practice
TALLAHASSEE (CBSMiami/AP) – Calling it an unfair trade practice, state insurance consumer advocate Robin Smith Westcott wants an investigation to the practice of insurance companies canceling homeowner’s policies or denying claims based on their credit information.
Westcott made the request in a letter Tuesday to Florida Insurance Commissioner Kevin McCarty.
She wrote that insurers are obtaining credit reports after customers file claims and then using previous instances of bankruptcy, foreclosure and liens to cancel policies after the consumers have paid premiums for years.
She added that homeowners often then are unable to obtain or afford other coverage because their policies ostensibly have been cancelled for misrepresentation, so they face the prospect of losing their homes.