
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, May 21, 1993                   TAG: 9305210181
SECTION: BUSINESS                    PAGE: A-7   EDITION: METRO 
SOURCE: From staff and wire reports
DATELINE:                                 LENGTH: Medium

FLORIDA'S INSURANCE CRISIS HAS LITTLE EFFECT IN VIRGINIA

A few small insurance carriers have stopped writing homeowner policies in Virginia as part of a nationwide attempt by the industry to reduce exposure and losses, but coverage generally is available, the State Corporation Commission reported Thursday.

Unlike Florida, where insurance companies have refused to renew policies or write new contracts because of heavy losses from Hurricane Andrew, "insurance is readily available" in Virginia, said Kenneth Schrad, spokesman for the SCC.

All of the major carriers still are selling homeowner insurance in Virginia, he said. "There's no real problem."

On Wednesday, after Florida residents angrily denounced a plan by Allstate Insurance Cos. to drop 300,000 customers, that state's insurance commissioner, Tom Gallagher, prohibited all insurers from dropping any homeowner policyholders for at least 90 days.

He also urged the Florida legislature to use the 90-day moratorium to adopt measures to relieve the snowballing insurance crisis, in which companies are refusing to sell coverage in the state. The legislature is scheduled to meet Monday for a two-week special session.

Gallagher has proposed revamping the state-created joint underwriting association, which will insure homeowners who can't find coverage from private companies. Gallagher wants more consumers on the association's board, which now is controlled by the insurance industry.

Virginia has nothing like the joint underwriting association, which Schrad said was set up to deal with the Florida crisis. Virginia has only a "fair plan" to get coverage for people with problems that make it hard to qualify for insurance.

Schrad said State Corporation Commission members "see no need for a law at this time" in Virginia.

by CNB