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Hudson Announces Coverage Reduction:
Hudson Insurance Group informed us on July 22nd that they will exclude all
auto liability coverage in their admitted personal umbrella program for a
significant number of zip code* areas in California. This affects new
applications effective August 1st and renewal business effective November 1st.
Hudson began sending their "Conditional Renewal Offer" directly to insured’s on
August 1. We have developed an
alternative with RLI to replace the affected policies.
* Affected Zip Codes:
First 3 digits beginning with 900 through 918
Replacement Policy Direct Bill Process:
Our job as a wholesale underwriting agency is to offer you the best alternatives
available.
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We will send a quote and prefilled
application and request for payment to your client replacing
Hudson with RLI, an A+ rated admitted carrier. The rates will, in almost every
case, be less than the Hudson expiring
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You will receive an email from us with the
quote sent to your client at the
same time the quote is mailed to your client.
·
Binding is subject to our receiving a
signed application, full payment, and underwriting approval.
State of the Market:
The California tort liability situation is causing a very restricted market for
high limit auto and personal liability exposures. New developments such as
private equity litigation financing are resulting in an increase frequency and
severity of claims. Just see the many personal injury lawyers advertising on TV,
social media and even on public transportation and Dodger Stadium. Your clients
need more protection, but the cost of that protection is increasing as the
supply is decreasing. It’s not as visible
as the meter at the gas station but this is inflation caused by a lack of supply
and an increased demand. It affects your clients in exactly the same way as the
situation at the gas pump.
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