#16
Can someone elaborate on the below answer that was part of the examiner's report that was accepted for part a? I am not sure I understand what it means.
"Company A writes personal lines insurance (HO) which has less
sophisticated insureds/voter concerns"
Comments
Homeowners is a personal line. The insureds are individuals, rather than commercial enterprises. They are a little more prone to be uninformed about the insurer's finances than the commercials. So, the regulator perceives Company A to be more in need of solvency monitoring.
I am not sure about "voter concerns." It may be referring to the case of Company A being a mutual insurer, where policyholders have voting rights on board elections and motions. For the same reason as above, the regulator may be concerned that voting policyholders are nor as informed as commercial insureds would be.