In this week's news will talk about how Texas bill aims to ban forced home-auto insurance bundling, Florida's insurance industry comes out swinging for MGAs, and much more…
New York to toughen up laws to make up for weakened CFPB
New York is moving to strengthen consumer protections with new legislation aimed at preventing deceptive and abusive business practices. Attorney General Letitia James has introduced the FAIR Business Practices Act, which is being championed in the state legislature by Senator Leroy and Assembly member Micah Lasher. The proposed law seeks to modernize and expand the state's consumer protection laws, bringing them in line with those of most other states.
According to James, the current law, General Business Law §349, only prohibits deceptive acts, leaving consumers vulnerable to unfair and abusive business tactics. The FAIR Business Practices Act would address predatory lending, hidden fees, misleading subscription policies, deceptive healthcare billing, and online scams. It would also give the Attorney General's office greater authority to seek penalties against businesses that engage in these harmful practices.
One of the main goals of the bill is to prevent predatory lending practices used by auto lenders, mortgage companies, and student loan servicers. It would also regulate aggressive debt collection practices, especially those targeting seniors. Additionally, the legislation would require greater transparency in online transactions, protect consumers with limited English proficiency, and ensure fair business practices for small businesses.
According to James, the current law, General Business Law §349, only prohibits deceptive acts, leaving consumers vulnerable to unfair and abusive business tactics. The FAIR Business Practices Act would address predatory lending, hidden fees, misleading subscription policies, deceptive healthcare billing, and online scams. It would also give the Attorney General's office greater authority to seek penalties against businesses that engage in these harmful practices.
One of the main goals of the bill is to prevent predatory lending practices used by auto lenders, mortgage companies, and student loan servicers. It would also regulate aggressive debt collection practices, especially those targeting seniors. Additionally, the legislation would require greater transparency in online transactions, protect consumers with limited English proficiency, and ensure fair business practices for small businesses.
Heritage faces disaster losses as net income declines
Heritage Insurance estimates $35 million to $40 million in pretax net catastrophe losses from the January wildfires in California, where it provides only excess and surplus (E&S) coverage, executives said.
Chief financial officer Kirk Lusk said that 35 claims have been filed in connection with the wildfires, with 15 classified as total losses and the remainder involving smoke damage. Most claims resulted from the Palisades Fire in Los Angeles.
Heritage currently writes E&S business in California, Florida, and South Carolina and is evaluating expansion into additional states. Chief executive officer Ernie Garateix said the controlled growth strategy allows the company to adjust rates and coverage based on individual state dynamics to maintain risk-adjusted returns.
The company reported a decline in fourth-quarter net income, which fell to $20.3 million, down from $30.9 million in the prior-year quarter. Catastrophe losses rose to $40 million, compared to $3.1 million in the same period last year.
Chief financial officer Kirk Lusk said that 35 claims have been filed in connection with the wildfires, with 15 classified as total losses and the remainder involving smoke damage. Most claims resulted from the Palisades Fire in Los Angeles.
Heritage currently writes E&S business in California, Florida, and South Carolina and is evaluating expansion into additional states. Chief executive officer Ernie Garateix said the controlled growth strategy allows the company to adjust rates and coverage based on individual state dynamics to maintain risk-adjusted returns.
The company reported a decline in fourth-quarter net income, which fell to $20.3 million, down from $30.9 million in the prior-year quarter. Catastrophe losses rose to $40 million, compared to $3.1 million in the same period last year.
Florida's insurance industry comes out swinging for MGAs
A recent Tampa Bay Times article examining the financial practices of Florida’s property insurers has drawn sharp criticism from industry representatives, who argue that the report presents an incomplete and misleading picture of the market.
Lori Augustyniak, president of the Professional Insurance Agents of Florida, issued a letter rebutting claims that insurers funneled billions of dollars to investors while simultaneously reporting financial losses. She contends that the February 22, 2025, article overlooks key financial mechanisms that enable insurers to operate in a high-risk state.
“The suggestion that insurers are ‘hiding’ money misrepresents the standard financial structures necessary for solvency,” Augustyniak wrote. “These transactions, including capital allocations to affiliates, are subject to regulatory oversight and help insurers maintain reinsurance, improve efficiency, and comply with state regulations.”
A central point of contention in Augustyniak’s response is regulatory scrutiny. The Times article implies that insurers operate with little oversight, but Augustyniak counters that the Florida Office of Insurance Regulation (OIR) has full access to insurer financials, including contracts with Managing General Agents (MGAs), investor returns, and affiliate transactions.
Lori Augustyniak, president of the Professional Insurance Agents of Florida, issued a letter rebutting claims that insurers funneled billions of dollars to investors while simultaneously reporting financial losses. She contends that the February 22, 2025, article overlooks key financial mechanisms that enable insurers to operate in a high-risk state.
“The suggestion that insurers are ‘hiding’ money misrepresents the standard financial structures necessary for solvency,” Augustyniak wrote. “These transactions, including capital allocations to affiliates, are subject to regulatory oversight and help insurers maintain reinsurance, improve efficiency, and comply with state regulations.”
A central point of contention in Augustyniak’s response is regulatory scrutiny. The Times article implies that insurers operate with little oversight, but Augustyniak counters that the Florida Office of Insurance Regulation (OIR) has full access to insurer financials, including contracts with Managing General Agents (MGAs), investor returns, and affiliate transactions.
Texas bill aims to ban forced home-auto insurance bundling
Texas lawmakers and regulators are evaluating whether insurers should be allowed to require consumers to bundle home and auto insurance policies with the same company.
The issue has drawn attention from consumer groups and policyholders who say they were told they must bundle to maintain coverage.
The Texas Department of Insurance (TDI) reported receiving nearly 40 complaints as of early December from consumers who said they were required to add an auto policy to renew their homeowners insurance.
While bundling is typically optional and marketed to receive a discount, some consumers have expressed concerns about being given no choice in the matter.
The issue has drawn attention from consumer groups and policyholders who say they were told they must bundle to maintain coverage.
The Texas Department of Insurance (TDI) reported receiving nearly 40 complaints as of early December from consumers who said they were required to add an auto policy to renew their homeowners insurance.
While bundling is typically optional and marketed to receive a discount, some consumers have expressed concerns about being given no choice in the matter.
Online web portal Zillow is now putting climate risk and insurance issue on home listings
It’s no longer just about the purchase price or mortgage rate – cat risk concerns are playing an increasingly critical role in real estate decisions, as prospective homebuyers weigh insurance challenges and climate risks before making a purchase. According to a recent Zillow survey, over 80% of homebuyers now consider climate-related hazards such as floods, wildfires, and extreme heat when searching for a home.
"While all generations juggle trade-offs like budget, floor plans and commute times, younger home shoppers are more likely to face another consideration: They want to know if their home will be safe from rising waters, extreme temperatures and wildfires," said Zillow senior population scientist Manny Garcia.
Zillow has introduced a new feature on its platform that highlights climate risks in five key areas: floods, wildfires, wind, extreme heat, and air quality. This tool allows buyers to evaluate potential hazards and make informed decisions regarding home insurance requirements.
"While all generations juggle trade-offs like budget, floor plans and commute times, younger home shoppers are more likely to face another consideration: They want to know if their home will be safe from rising waters, extreme temperatures and wildfires," said Zillow senior population scientist Manny Garcia.
Zillow has introduced a new feature on its platform that highlights climate risks in five key areas: floods, wildfires, wind, extreme heat, and air quality. This tool allows buyers to evaluate potential hazards and make informed decisions regarding home insurance requirements.
