"The overwhelming majority of the carriers reviewed appeared to have the situation under control," Demotech said.
The statement means that for now,
In its statement, Demotech said the carriers it reviews added roughly
However, three companies secured new ownership to meet Demotech's expectations --
Still, the same uncertainties remain in place that prompted Demotech to suspend the standards under which it rates
Demotech also cited recent state Supreme Court rulings that it said reversed claims procedures, protocols and practices that remain standard in other locations, as well as excessive claims and lawsuits connected with the assignment of benefits [AOB] clauses currently under debate in the state Legislature.
"In the longer run, absent meaningful improvement in the AOB situation, it is likely that insurers may face downgrades in the future," Demotech said, adding,"consumers may face higher and frequent rate increases, and investors who would otherwise capitalize or fund
However, Neal said "it would have been best for the market if some companies were downgraded below the A level."
"Some companies are clearly more financially healthy than others. We need to find a way they can differentiate themselves to consumers."
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