Information from the Office of Insurance Regulation re Insurance Commissioner Addresses Federal Role in Responding to Natural Disasters; Public Rate Hearings 9/19/06
Jan 14, 2007
Please find below recent news from the Office of Insurance Regulation. Should you have any questions or concerns, please do not hesitate to contact this office.
Regards,
Fred E. Karlinsky
FOUR PUBLIC HEARINGS SET ON RATE FILINGS
Tallahassee (September 18, 2006) � The Florida Office of Insurance Regulation (Office) has scheduled public hearings on rate filings submitted by Federated National Insurance Company, Homewise Insurance Company , Liberty American Insurance companies, and Florida Family Insurance Company. Hearings for these rate filings will be held in Tallahassee, in the Senate Office Building, room 401, at The Capitol. The hearings will be held on September 22, 2006 and on September 28, 2006.
Federated National has requested a 49.5 percent statewide average rate increase for its homeowners insurance business in Florida. The public hearing for this filing will take place September 22, 2006, at 10:00 a.m. The agenda for this hearing can be found online at www.floir.com/pdf/AgendaFederated.pdf
Homewise Insurance Company has filed for a statewide average increase in rates of 75.8 percent for its wind-only homeowners insurance lines in Florida. The public hearing for this rate filing will occur September 22, 2006, at 1:00 p.m. The agenda for this hearing can be found online at http://www.floir.com/pdf/AgendaHomewise.pdf
Liberty American Select Insurance Company has requested average statewide rate increases of 44.8 percent and 96.2 percent for its homeowners and dwelling fire programs, respectively. Liberty American Insurance Company has requested a 95.8 percent average statewide rate increase for its condo unit owners insurance. The public hearing for these rate filings is scheduled for September 28, 2006, at 10:00 a.m. The agenda for this hearing can be found online at http://www.floir.com/pdf/AgendaLibertyAmerican.pdf
Florida Family filed for a statewide average increase of 14.8 percent for its homeowners business in Florida and 27.7 percent for its dwelling fire program. The public hearing for this rate filing will take place September 28, 2006, at 1:00 p.m. The agenda for this hearing can be found online at http://www.floir.com/pdf/AgendaFloridaFamily.pdf
The requested rates are not uniform and some areas in the state are subject to higher or lower rate changes. Florida law requires that the Office hold public hearings on rate filings for statewide average increases exceeding 15 percent or for any reason the Office deems necessary.
These hearings are open to the public, and input from interested parties is welcomed. The hearings will be taped by the Florida Channel and video will be available online at www.floir.com under the Hot Topics portion of the website. Those unable to attend the public hearings are welcome to forward comments to the Office at ratehearings@fldfs.com. The subject line of emails should include the name of the company of interest and the words rate hearings.
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this hearing should telephone Sam Coskey at (850) 413-2616 or e-mail him at sam.coskey@fldfs.com at least 48 hours prior to the hearing.
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-NEWS FROM THE FLORIDA OFFICE OF INSURANCE REGULATION-
FLORIDA INSURANCE COMMISSIONER ADDRESSES FEDERAL ROLE IN RESPONDING TO NATURAL DISASTERS
TALLAHASSEE (9/18/2006) � Florida Insurance Commissioner Kevin McCarty today addressed the National Association of Realtors (NAR), in Washington, D.C., regarding the role of the federal government in addressing natural disasters.
McCarty also serves as chairman of the Property & Casualty Insurance Committee Catastrophe Insurance Working Group at the National Association of Insurance Commissioners: his speech to the NAR is attached below.
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“Natural Disasters and the Role of the Federal Government”
A Speech by Kevin McCarty, Florida Insurance Commissioner
To the National Association of Realtors
September 18, 2006
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I would like to thank Cynthia Shelton (moderator) for that introduction, and thank the National Association of Realtors for inviting me to speak with you today. It is a very special honor to be invited to the Federal Natural Disaster Policy Symposium, as the National Association of Realtors has shared our vision for the development of a National Catastrophe Plan, and understands the complex relationship between natural catastrophes, the homeowners� insurance markets, and our national economy.
If I can leave you with one message today it is this: Natural Catastrophes are a national problem that requires a national solution.
In August of 2005, two years of intense storm activity culminated with one of our worst nightmare scenarios when Hurricane Katrina reached landfall near New Orleans. More than the estimated cost of $36 billion in damage to five Gulf coast states, it was the human suffering that crystallized several axioms about this “insurance problem”:
� State resources are not sufficient to handle a mega-catastrophe
� We must engage in catastrophe planning before a disaster; and
� We are confronting an economic problem, not an insurance problem.
Hurricane Katrina was not the only storm to hit the Gulf-Coast region during the 2004-2005 hurricane seasons. In fact, seven other hurricanes reached landfall in the Gulf coast causing a total of $70 billion in insured damage. For those living in high-risk areas, the real tragedy occurred in the aftermath of the storms as policyholders experienced displacement, shortages in building supplies, shortages in homebuilding labor, rising insurance premiums, mortgage defaults, and the unavailability of private insurance. During recent trips across the state of Florida, I still saw “blue tarps” covering homes that have not been fully repaired.