While other insurance carriers are taking heat for pulling out of South Florida, the Travelers Corp. is quietly forcing 70 percent of its South Florida policyholders to find a new carrier in 13 months or be canceled.
That policy, revealed at a public hearing Thursday in West Palm Beach, prompted the state's consumer advocate for insurance to question whether Travelers is violating the statewide moratorium on policy cancellations and non-renewals.
Unlike Allstate and Prudential, Travelers did not declare a full or partial pullout from the state after Hurricane Andrew. The company had $300 million in storm losses.
The program was set in motion last Nov. 16 when Travelers severed relations with 21 of 54 sales agents in South Florida, 41 of 145 statewide. If, by July 1, 1994, policyholders have not been picked up by a new carrier, they won't be renewed, said George Sullivan, director of Travelers' Personal Lines Regulatory Unit.