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Adirondack Insurance Exchange, Mountain Valley Advise Clients To Replace Their Policies

​New York based insurer Adirondack Insurance Exchange (AIE) and its affiliate Mountain Valley Indemnity Co. (Mountain Valley) have reported financial trouble. They have advised policyholders to seek replacement coverage immediately.AIE's financial strength rating from rating firm Demotech was withdrawn on May 28. The carrier told its agents at the time that: It was suffering from a surplus shortage and deteriorating capital. Their premium rates had not kept pace with rising loss costs. Mountain Valley's Demotech rating was withdrawn on July 18. On July 11, AIE informed its agents that its financial condition had worsened. They advised agents to begin replacing their AIE policies immediately. Last…

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Adirondack To Agents: Start Replacing Our Policies

​Adirondack Insurance Exchange reported today that its financial condition has continued to deteriorate. The carrier is advising its agents to begin replacing its policies with other insurance carriers immediately. As we reported on May 29 and June 18, Adirondack's financial strength rating from rating firm Demotech was withdrawn on May 28. That same day, the carrier emailed its agents reporting a surplus shortage and a deterioration in their capital due to rising loss costs and inadequate rates. Should the carrier reach the point of insolvency, a lengthy legal process must ensue before claim payments will become jeopardized. These are some of the questions we answered…

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DFS: No More Underwriting of Subsidized Housing

​Insurers in New York are no longer permitted to take adverse underwriting actions regarding habitational properties that contain subsidized housing units, according to the state Department of Financial Services (DFS.) The department said it was acting in response to a new section of the state's insurance law that took effect this spring.The announcement came in a circular letter dated June 24, 2024 addressed to all New York licensed property-casualty insurers; licensed insurance producers; the New York Property Insurance Underwriting Association (NYPIUA); and the Excess Line Association of New York (ELANY.) Bernard Ganley, deputy superintendent of the department's Property Bureau, explained that the state budget enacted on…

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