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DELAWARE INSURANCE DEPARTMENT ANNOUNCES REDUCTION OF HOMEOWNERS' INSURANCE PREMIUMS

 DELAWARE INSURANCE DEPARTMENT ANNOUNCES
 REDUCTION OF HOMEOWNERS' INSURANCE PREMIUMS
 DOVER, Del., Oct. 6 /PRNewswire/ -- Homeowners' insurance premiums will drop under an order issued by Insurance Commissioner David N. Levinson.
 The order requires all insurers to refile homeowners' rates to increase the average dollars paid out in claims and loss adjustment expenses from 1991's average of $49.54 per hundred dollars or insurance premium collected to $65 per hundred dollars of premium collected. The average homeowners' premium in Delaware should drop by 23.8 percent as a result of this order.
 Levinson stated: "For the past several years, the department has monitored losses on homeowners' insurance in Delaware. As the loss ratios dropped, most insurers reduced rates. These rate reductions have not kept pace with the better loss experience in Delaware, however. For example, in 1989, the direct claims payment in Delaware was 54.3 percent of premium collected; in 1990, the claims payment fell to 46.9 percent of premium collected despite widespread rate reductions; and in 1991, the claims paid fell again to 38.8 percent of premium collected. When only 38 percent of premium collected is paid back to Delawareans, that means excessive premiums are being collected from Delawareans."
 Levinson emphasized that the reductions implemented by any particular insurer will depend upon that particular insurer's losses in Delaware. While the average company paid out just 38 cents on a dollar of premium collected, some insurers had greater or fewer losses than the average. The commissioner's order requires each insurer to review its rate to insure that a minimum loss ratio of 65 percent is reached.
 -0- 10/6/92
 /CONTACT: David N. Levinson, Delaware Insurance commissioner, 302-739-4251/ CO: Department of Insurance ST: Delaware IN: INS SU:


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Publication:PR Newswire
Date:Oct 6, 1992
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