This is a common practice - when a named storm in within a certain area, insurance companies stop accepting new clients and will not increase/add coverage for existing clients. The obvious reason is to prevent people from waiting to buy insurance until a storm is imminent and then cancelling it afterwards. Happens here in NC when a hurricane/TS is in the Atlantic.
One of the problems with OBAMACARE is that insurance companies cannot deny coverage for pre-existing conditions, so the fear is that people will wait until they are sick to get coverage.
That is another story though