Missouri Department of Insurance
National Association of Insurance Commisioner’s
Home Insurance Rates News Release: 1/17/2005
Category: Home Insurance Rate Enforcement
Washington, DC – A federal judge today ruled in favor of the
National Association of Insurance Commisioners and its efforts to recoup more than $100 million for home insurance consumers nation wide, an amount which the agency contends that a select few insurance companies may have overcharged home insurance consumers by inflating
Missouri home insurance prices and
Missouri home insurance
quotes.
The federal judicial panel and courts actions allows the NAIC to help reduce
Missouri home insurance
rates. The objective of NAIC staff throughout this action has been to provide home insurance rate relief for home insurance consumer policyholders who have been charged excessive home insurance rates.
NAIC staff, using authority granted by the federal judicial panel’s decision, ordered home insurance companies to reduce its home owners rates by 12 percent in September 2004.
Missouri home insurance companies appealed the reduction in district court, claiming that the they had been denied due process in ordering the rate reduction.
“NAIC staff’s latest action, based on a different law was designed to address the court’s concerns regarding due process,” said NAIC’s Deputy Commissioner for Policy. “Despite the insurance companies objections, the courts have allowed the debate based on the facts to move forward. In the end we believe the facts will show that their rates can be reduced.”
NAIC staff contends that home insurance companies have been overcharging its policyholders since June 11, 2003, the effective date of Senate Bill 14. NAIC is seeking a refund of the excessive premium plus 10 percent interest. The total amount will be calculated from June 11, 2003, to present.
Missouri, named after the Missouri Siouan Indian tribe meaning "canoe", is a Midwestern state of the United States with Jefferson City as its capital. The state's nickname is the Show-Me
(http://www.sos.mo.gov/arc
hives/history/slogan.asp) State; the U.S. Post Office abbreviation for Missouri is MO and the state public university's main branch is located in Columbia. The Mississippi and Missouri rivers are the two large rivers which flow through this state. Originally part of the Louisiana Purchase, Missouri was admitted as a state in 1821 as part of the Missouri Compromise.
It earned the nickname "Gateway to the West" because it served as a departure point for settlers heading to the west. During the Civil War, Missouri, a slave state, was split with portions adhering to the Union, and others seceding with the southern states. Missouri was the starting point for the Lewis and Clark Expedition. .
Missouri cities and towns of historical or cultural importance include: Saint Louis, Kansas City, Springfield, Columbia, Branson, Cape Girardeau, Sainte Genevieve, Saint Joseph, Hannibal, Independence, Saint Charles, Rolla, Jefferson City, Sedalia and Joplin.
