Homeowners Insurance Increase Denied by Delaware Insurance Commissioner

A request by Windsor-Mount Joy Mutual Insurance Company (WNMJ) to increase insurance rates on more than 2,000 manufactured housing policyholders in Delaware by 20 to 30 percent has been denied by Delaware Insurance Commissioner Trinidad Navarro, according to a press release issued by the Delaware Department of Insurance.

“When I ran for this position, I promised to thoroughly review and deny any requests for rate increases that I deem to be excessive,” Commissioner Navarro said in a statement. “In the future, I will not hesitate to apply strict standards and scrutiny to any rate filing. I will also continue to deny any request for rate increase that I find excessive.”

The release stated that many of the homeowners within the scope of the proposed rate increase have already received premium increase notices from WNMJ, effective March 15, 2017. Because of the Insurance Commissioner’s denial, those increases will not go into effect.

WNMJ’s requested increase would unfairly impact manufactured homeowners in one geographic region – Eastern Sussex County – according to the release. The Delaware Department of Insurance subsequently hired an independent actuary to determine the fairness of the requested rate increase. After reviewing 10 years of claims files for the company, the Department contracted actuary concluded that this geographic area, receiving the largest proposed increase, is also the area that has had the fewest claims.

“As Insurance Commissioner, it is my duty to look out for and protect consumers,” Navarro further explained in his statement. “After our analysis, we believe it is unfair for a company to pass on its negotiable reinsurance costs and negotiable brokerage fees to its policyholders by increasing their rates.”

Source: Delaware Department of Insurance