CDI Amends Proposed Deductible Policy Rules

The California Department of Insurance opened a second comment period on revised rules intended to prevent carrier insolvencies related to large-deductible policies. Carriers writing policies with a deductible of $100,000 or more would be required to maintain the equivalent of an “A” credit rating with A.M. Best Co., or post collateral for the deductible amount of a policy. The department said in its rule-making proposal that the regulations would ensure that experienced carriers that are best able to assess and absorb the risk of a policyholder failing to reimburse the dedu...