Insurer Pays 50K Fine Over Hail Policies
Iowa-based Crop Pro Insurance Service signed a consent order last month with the Nebraska Department of Insurance. The company left hundreds of Nebraska farmers without coverage last year when it cancelled their supplemental hail insurance policies. The insurer has agreed to pay a $50,000 fine and voluntarily surrender its insurance producer and managing general agent licenses in Nebraska after they expire on April 30 and not reapply for a license in the state for at least five years.
According to the consent order, Crop Pro oversold a hail-only insurance product without having sufficient reinsurance agreements in place to cover the policies. When it could not secure enough reinsurance, it canceled the policies of 367 Nebraska farmers. The company also canceled a handful of policies in Colorado.