In addition Donelon “directed Horace Mann to give him 30 days advance written notice of any future plans to cancel or non-renew Louisiana homeowners policies, stating that he will vigorously defend in a court of law any continued violations.”
Horace Mann does not have a small presence in Louisiana with over 10,000 homeowners’ policies in place and total written premium of around $10 million annually. The way Horace Mann attempted to justify canceling or non-renewing policies was “based on what it alleged was a “material change in the risk” due to a number of storm-related factors including improperly maintained levees; coastal erosion; damage to barrier islands, etc.”
However, Horace Mann was corrected when “Commissioner Donelon vehemently disagreed and advised Horace Mann that the ‘material change in the risk’ must relate to the property being insured, not the surrounding levees, barrier islands and other factors listed.”
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