Gov. Lamont Proposes Agent Flood Insurance Disclosure Mandate
As anticipated, Connecticut Governor Ned Lamont this week proposed legislation mandating that insurance agents and brokers obtain written acknowledgement from certain insurance applicants regarding the availability of flood insurance and whether the customer declines to purchase flood coverage. The new requirement would apply to consumers seeking coverage for homeowners, tenants, mobile manufactured homes and other applicable P&C coverages.
Last week Big I CT shared concerns about this type of mandate during a flood insurance forum hosted by the General Assembly Insurance and Real Estate Committee as well as with key policy staff for Gov. Lamont and the House Majority. While agents may utilize check lists and other processes to document interactions with customers, mandating signed documentation as a requirement to obtain coverage creates several challenges for customers and agents. The requirement does little, if anything, to address the root cause of why many homeowners do not have flood insurance, which is added cost.
Agents and brokers are an important resource for Connecticut families and businesses as they seek to make informed decisions about how to protect themselves from risk. However, this proposal adds new costs to an industry that is heavily burdened by existing compliance requirements and will create unintended barriers for customers seeking to protect their property from loss.
Big I Connecticut will continue to engage with members and policymakers as we pursue alternative solutions to help property owners understand their coverage needs and available insurance solutions.
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