Texas insurers: Moores insurance agency could lose millions of dollars
The Texas Insurance Agency has filed a complaint with the Federal Trade Commission alleging that Moore’s Insurance Agency, which operates a statewide reinsurance program, may be in violation of the law.
The complaint was filed on Monday in the Federal District Court in Dallas by attorneys with the law firm Jones Day.
Moore’s Insurance Company was formed in 1993 and was one of several state-based reinsurance programs in Texas that was recently targeted by a class-action lawsuit brought by a coalition of insurance companies over the state’s catastrophic-loss reinsurance law.
The lawsuit alleged that Moore failed to make certain reinsurance policies available to the uninsured and other customers who lacked insurance coverage.
Moore has maintained that it has not been negligent in its reinsurance activities.
However, the complaint claims that Moore has failed to provide reasonable advance notice to insurers of any change in its policies or procedures that would result in changes to the reinsurance plans.
In the complaint, the lawyers claim that Moore could be subject to a civil penalty of up to $2.8 million for each day that it fails to provide advance notice of changes to its reinsurers policies or reinsurance contracts that could result in a material change to its policies and reinsurance deals.
In a statement, the Texas Insurance Department said that it was reviewing the complaint and would respond in due course.
The agency said that Moore would not be responsible for any loss that occurred under the reinsure provisions of the Texas law, which it said was enacted in 2009.
Moore was formed as a reinsurance provider by the state of Texas, but the Texas Association of Insurance Commissioners (TAIC) and other insurers sued it in federal court over the reinsurer mandate in 2013.
The state-run reinsurance plan is intended to reduce the cost of insurance for consumers and provide coverage for catastrophic losses, including those resulting from disasters.