The Federal Trade Commission has ruled that National General Life Insurance Company (NGLIC) of New York City does not provide a comprehensive, affordable homeowners policy to consumers.
In a ruling on Thursday, the commission said NGLIC does not offer a comprehensive policy that is good for most Americans.”NGLic offers no comprehensive policy, which is a major omission,” said Robert Kremers, vice president of the National Consumer Law Center, a consumer rights advocacy group.
“They do not offer any coverage for any homeowner, which in and of itself is an important feature.”
The decision came on the heels of the financial crisis that hit homeowners in many parts of the country, particularly in New York.
The National Consumer League, a national consumer advocacy group, issued a statement calling on the Federal Trade Commissioner to “review the conduct of the insurance company in its handling of mortgage and other mortgage-related claims.”
In a statement, NGLic said it is disappointed with the commission’s decision and plans to appeal the ruling.
“Our decision to comply with the law and to provide a homeowners insurance policy is a long overdue step forward for all homeowners,” said the company.
“We are confident that our policies are compliant with the Federal Rules of Civil Procedure and that our product is safe, reliable, and affordable.”
The National Consumer Insurance Council (NCIC) praised the decision.
“NGLIC is a leading provider of comprehensive, fair, and cost-effective homeowners insurance,” NCIC President Mark Ebert said in a statement.
“Our customers deserve a policy that offers homeowners insurance that is affordable, and NGLC has consistently made that goal a top priority.”
The council also praised the FTC for taking a strong stance against NGLLIC’s actions.