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Prichard faces immediate insurance uncertainty after carrier cites underwriting concerns
Summary
Mayor Davis said the city received a carrier notice citing underwriting reasons and a high number of claims; the carrier indicated it may drop coverage effective Aug. 1 while the city says it has paid coverage through Oct. 17 and has filed an appeal and sought alternate quotes.
Mayor Davis told the council the city's insurer sent a notice (transcribed in the record with varying names) in mid-June saying it would drop coverage for underwriting reasons, citing the number of claims and delays in supplying claim information. "I think it was June 17, to say that they were dropping us from the insurance for and they I did underwriting reasons," Davis said, and added that she immediately contacted the carrierwhose president the transcript identifies as Sean Duketo seek clarity.
Davis said an appeal has been filed in writing (prepared by the city's attorney) and the city has requested quotes from other carriers. She also said Mr. Duke advised that a carrier reconsidering coverage might still exclude the police department. "As far as the police department, Mr Duke did advise me that if they were to reconsider, the insurance, they would not cover the police department," she said. The mayor noted the city paid premiums through Oct. 17 but that the carrier indicated an earlier drop (transcribed as effective Aug. 1). Davis said options under consideration include appeals, switching carriers, and evaluating self-insurance or other interim risk-limiting steps while the city awaits responses from carriers.
