NY Approves New Insurer For Property And Casualty Coverage
ALBANY, N.Y. (AP) — New York regulators have approved the application of Lemonade Insurance Co. to sell property and casualty insurance in the state.
According to the Department of Financial Services, Lemonade will focus on writing homeowners' and renters' policies with direct-to-consumer marketing and a corporate giving program funded from policyholders' unclaimed insurance payments.
The New York-chartered company is based in Manhattan.
Lemonade, on its website, says policies start at $5 a month for renters and $35 for homeowners, that it takes a fixed fee from monthly payments, buys reinsurance, uses the rest to pay claims, and will donate money left at the end of the year to a designated nonprofit.
The company says it doesn't keep leftover money, called "underwriting profit," making it different from traditional insurers.
[STORY BY: THE ASSOCIATED PRESS]