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HOME INSURANCE COMPANY SEEKS ADMINISTRATIVE HEARING

 TALLAHASSEE, Fla., July 9 /PRNewswire/ -- The Home Insurance Company today filed a petition with the State of Florida Insurance Department seeking an administrative hearing as soon as possible so that it may continue the withdrawal of its personal lines from Florida which it began in 1991.
 Earlier in the week, the Home suspended its non-renewal process when the Florida Department of Insurance issued a "show cause" order, claiming that the company was violating the state moratorium on non- renewals imposed after Hurricane Andrew.
 "We're very disappointed in the department's decision," said Bruce S. Rubin, a spokesman for the company.
 "The Home made a business decision in 1991 to withdraw from the personal lines market on a national basis, and properly notified all state insurance departments, including Florida. We've been working closely with the Florida Department of Insurance every step of the way.
 "Our position is that we're completing, not starting, our previously authorized withdrawal process begun in 1991," said Rubin.
 David Yon, a Tallahassee attorney representing the Home Insurance Company, said that the moratorium on non-renewals wasn't intended for the Home and doesn't apply.
 "The moratorium precludes companies from non-renewing or canceling policies in this market on the basis of risk of hurricane claims," said Yon. "That simply isn't the case here."
 Yon said he's asking for an administrative hearing "on an expedited basis."
 The Home Insurance Company is headquartered in New York.
 -0- 7/9/93
 /NOTE TO EDITOR: Legal documents are available for review.
 The following is a backgrounder to editors regarding the withdrawal of personal lines by The Home Insurance Company:
 -- In October 1991, the Home Insurance Company notified State Insurance Departments across the country that it was withdrawing, nationally, from the personal lines market. The company had determined it would concentrate on larger, more complex types of commercial insurance. The Florida Insurance Commissioner's office was included in this notification.
 -- In its October 1991 letter to the Florida Insurance Department, notice was given that the non-renewal process would begin on May 1, 1993.
 -- The company continued to work with all state insurance departments, including Florida, to insure that proper withdrawal procedures were followed.
 -- As a result of Hurricane Andrew, Florida declared a moratorium effective May 19, 1993 on insurance companies seeking to withdraw from the market on the basis of risk of hurricane claims.
 -- On July 2, the Florida Department of Insurance issued a "show cause" order to the Home Insurance Company regarding its withdrawal from personal lines. An Administrative Hearing is a possibility.
 -- The following points are noteworthy:
 -- The company decided to withdraw from all personal lines in
 1991.
 -- The decision was company-wide and national. Florida was not
 singled out.
 -- The decision occurred almost one year before Hurricane Andrew.
 -- The company has met with the department on different occasions over the last several months to fully explain its position. The Order to Show Cause represents the Home's first official notice that the Department regards the non-renewal process as invalid. The company has ceased non-renewing homeowner and mobile home policies in Florida as of July 6, 1993.
 -- The company hopes editors and reporters covering the insurance issue will see the clear distinction between the Home Insurance Company's 1991 decision to withdraw nationally from personal lines and the purpose of the moratorium. The company would like to complete, not initiate, its withdrawal process begun in 1991.
 CONTACT: Bruce S. Rubin of Bruce Rubin Associates, 305-448-7450, for The Home Insurance Company/


CO: The Home Insurance Company ST: Florida IN: INS SU:

AW-JB -- FL013 -- 0053 07/09/93 16:36 EDT
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Publication:PR Newswire
Date:Jul 9, 1993
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