Commissioner McCarty Orders Insurer To Refund $43.2 Million To Customers

The Florida Office of Insurance Regulation today disseminated the following news regarding a Consent Order issued to United Property & Casualty Insurance Company to refund rate increases previously allowed under Florida law.

Should you have any comments or questions, please do not hesitate to contact this office.

 

Commissioner McCarty Orders Insurer To Refund $43.2 Million To Customers

TALLAHASSEE (06/15/2007) – Florida Insurance Commissioner Kevin McCarty issued a Consent Order requiring United Property & Casualty Insurance Company to refund millions of dollars in unapproved homeowners’ insurance rate increases.

Last October, United began charging its customers higher insurance rates before the Florida Office of Insurance Regulation officially approved the rate increase. This was allowed under Florida law at that time and was referred to as a “use and file” rate increase.

However, the law also stated that if, after the Office reviewed the increase and determined that it was too high, the Office had the authority to require the company to return to policyholders the difference between the original rate charged and the rate ultimately approved by the Office. In this case, the difference between the amount charged and the amount approved is $43,249,714.

“Recent legislation in Florida prohibits property insurers from using use and file rates in the future, but United engaged in this action last year before it was banned,” McCarty said. “We will continue to aggressively pursue all refunds and credits that are due to Florida consumers.”

The Consent Order requires United to begin refunding immediately.

Click here to review the Consent Order.