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Doi Works with Insurer to Continue Coverage for Owners of Condominium Associations

4/19/2002

TALLAHASSEE – Florida Treasurer and Insurance Commissioner Tom Gallagher announced today that the Insurance Corporation of New York (INSCORP) has advised the Department of Insurance that, despite reports to the contrary, it plans to resume offering property and liability coverage for its condominium association policyholders, including coverage for windstorm and all other perils. According to INSCORP, this coverage will be provided through the company and one of its affiliates.

"I commend INSCORP's commitment to providing its policyholders with comprehensive windstorm coverage, especially before the hurricane season starts on June 1," Gallagher said.

The company had advised the department that it might cancel coverage for condo association policyholders on or after June 1 unless it was permitted to exclude coverage for terrorism in its policies. At this point, the department has not approved any exclusions for the peril of terrorism.

INSCORP insures about 1,400 condo associations in Florida. The potential cancellation would have had no effect on the premiums that condo unit owners currently pay for their individual policies.

To date, no other admitted carriers that write coverage for condo association owners have indicated to the department that they will non-renew policies due to the absence of terrorism coverage.

In a letter to the department, INSCORP indicated that it plans to submit a filing that will accommodate policyholders in two ways: hurricane coverage will be provided through INSCORP and underlying coverage will be provided through an affiliate.