Governor Will Veto Legislation Impacting Homeowner Insurance Rates

Posted February 5th, 2010
by HomeownersInsurance.org Staff (no comments)

legislatureFlorida governor Charlie Crist announced he would veto any legislation that would permit certain insurers to use homeowner’s insurance rates not subject to the Office of Insurance Regulation (OIR) approval.

The bill, HB 447, has not gone through the legislature yet because the legislative session has not yet started. But the Governor wanted to be firmly on record that he “will not support legislation that increases home insurance premiums.”

Bill 447

One of the reasons this bill had been introduced is that storms have caused excessive losses resulting in dwindling surpluses for homeowners insurance companies. The fact that the companies haven’t been able to get the rate they need is adding to the problem.

The legislature is trying to address some of the insurance industry concerns by taking steps via the area of loss mitigation.

This bill is an attempt at getting rate for the insurance carriers. It would allow homeowner insurance carriers in Florida the ability to charge rates not approved by the OIR if they (the carriers) maintained their surplus at a certain level.

Consumer Group Reaction to Bill 447

The news of Governor Crist’s position was greeted favorably by consumer groups. The Consumer Federation of America’s (CFA) director of insurance stated, “It is outrageous to claim that this bill falsely promises ‘consumer choice,’ when its purpose is to let insurance companies charge whatever high rate they want with no consumer protections in a market with virtually no competition. The bill is an insurance industry wolf wrapped in consumer-choice-like lamb clothing.”

Photo via marbla123

Categories: News

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