Florida Cabinet Approves Revised Wind Mitigation Feature Reporting Forms; Florida Insurance Commissioner to Address CFO’s Insurer-Related Concerns
Mar 9, 2010
The Florida Cabinet met today, March 9, 2010, during which it considered Proposed Rule 69O-170.0155 for final adoption by the Florida Office of Insurance Regulation (“OIR”).
OIR Deputy Insurance Commissioner Belinda Miller presented the OIR agenda, which was approved with minimal discussion.
The approved amendments to Rule 69O-170.0155 will serve to modify two forms, OIR-B1-1802 and OIR-B1-1655, which are used respectively by home inspectors and insurance companies for providing information about windstorm mitigation features on residential properties.
Following approval of proposed Rule 69O-170.0155, Florida Chief Financial Officer Alex Sink requested the OIR to prepare a presentation on the State of Florida’s private property insurance market.
Ms. Miller noted that 2009 insurer annual statements, which were due March 1, 2010, were recently received by OIR and the numbers look positive. She also said that she welcomed the opportunity to report this to the Cabinet and added that many media reports on insurer financial statistics have been “wrong.” For example, she said, a report that six insurance companies became insolvent during 2009 is inaccurate.
Commissioner of Agriculture and Consumer Services Charlie Bronson inquired about the status of Citizens Property Insurance Corporation, to which Ms. Miller responded that it is in good financial condition and has a $3.9 billion surplus.
To access the complete Cabinet agenda, which includes a hyperlink to the OIR agenda, click here.
Coverage of specific aspects of the meeting from today’s Sun-Sentinel’s “House Keys” blog is reprinted below.
Should you have any comments or questions, please contact Colodny Fass.
State insurance regulators under fire as hurricane season approaches
Posted by Julie Patel on March 9, 2010
Florida CFO Alex Sink called on insurance regulators to explain why several domestic property insurers are financially unstable, especially since hurricane season is around the corner.
“The vast majority of Florida homeowners rely on property insurance coverage to protect their homes, coverage that is especially important in these very difficult economic times,” Sink wrote in a letter today to Insurance Commissioner Kevin McCarty. “Florida’s homeowners and policyholders deserve nothing less than accurate information about the protection they’ve been paying for.”
As requested by Sink, McCarty will address the issue at a March 23 Florida Cabinet meeting. At the same time, the Senate’s insurance committee will debate a bill Wednesday that would require the insurance commissioner be re-appointed every two years instead of having an indefinite term.
Some lawmakers have blamed insurers’ revenue shortfalls on Insurance Commissioner Kevin McCarty. McCarty’s office helped lower insurance rates by a statewide average of 16 percent a few years ago under state laws aimed at stabilizing rates after they doubled or tripled for some homeowners after the 2004 and 2005 hurricanes. His office is monitoring the health of smaller insurers to ensure they can pay claims if a major hurricane strikes this year.
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