The Office of Insurance Regulation has endured many attacks regarding its solvency review for homeowners insurance companies and for measures taken by the office prior to a placing a company into receivership — most recently from Eli Lehrer of the Heartland Institute.
Mr. Lehrer mentions he is concerned that “insurance rates are still sky high,” but he fails to understand that his solution will force insurance premiums even higher. He mentions that Northern Capital owed its creditors $3 million, but he fails to explain that this is owed to international reinsurance companies and will not be paid by the Guaranty Fund. Finally, he propagates the myth that insurers were in danger in the summer of 2009; this is not true — if a storm had hit, the claims of Northern Capital’s policyholders would have been paid.
Leave A Comment