ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Saturday, June 22, 1996 TAG: 9606240054
SECTION: VIRGINIA PAGE: C-4 EDITION: METRO
DATELINE: RICHMOND
SOURCE: Associated Press
An insurance company apologized Friday for canceling the fire insurance on a black church in Richmond that was destroyed by arson.
Travelers-Aetna Property and Casualty Inc. of Hartford, Conn., also offered to reinsure the Glorious Church of God in Christ and to contribute to the church's rebuilding fund.
The move came a day after Attorney General Jim Gilmore asked the state insurance commissioner to investigate whether black churches hit by arson are being unfairly treated by insurers. The commissioner sent letters to more than 500 insurance companies Friday urging them to exercise restraint in canceling churches' policies.
In his call for the probe, Gilmore specifically mentioned the cancellation of the Richmond church's insurance after the Feb. 21 arson.
The insurance company at first defended its decision to cancel the policy, saying the arson had nothing to do with it. On Friday, the company said it made a mistake.
``Our company for more than 20 years has been a major insurer of churches in this country. When one of our customers came face-to-face with the consequences of a vicious act of terrorism, we didn't react properly,'' said Charles J. Clarke, the company's chief executive officer for commercial lines.
Clarke said company officials are being told not to cancel or refuse to renew policies of churches that are torched.
Keith Anderson, a company spokesman, said he called Morris Mahoney, chairman of the church's board of trustees, and apologized. He said a company official will meet with church leaders Monday.
A day earlier, Anderson said the insurance was canceled for reasons not related to the arson. He would not elaborate.
``After we looked behind those reasons, they didn't make sense to us,'' Anderson said Friday. ``We felt it should have been handled differently, from a customer service standpoint.''
Mahoney said he was pleased with the company's move and declined to speculate whether publicity over the policy cancellation had anything to do with it.
``It's difficult to read the hearts of men. The only thing I can do is accept their offer for the benefit of the church,'' he said.
After the policy was canceled, the church bought insurance Mahoney described as substandard and expensive from another company.
The Richmond church is on the list of more than three dozen that have been hit by arsons that are being investigated by federal officials. Mahoney said many churches in other states also have had problems keeping or renewing insurance after being burned.
LENGTH: Medium: 57 linesby CNB