Update: Commissioner McCarty Comments on Senate Select Committee on Property Insurance Accountability Recommendations

Update:   Florida Insurance Commissioner Kevin McCarty issued the statement below in response to the attached list of recommendations from Senator Jeff Atwater and Steve Geller, the Co-Chairs of the Senate Select Committee on Property Insurance Accountability received by Senate President Ken Pruitt today, March 13, 2008.

Senate President Pruitt issued the following statement upon receiving the recommendations:

“I appreciate the many hours of research, public hearings, and deliberation that the Senate Select Committee on Insurance Accountability has conducted over the past months. I look forward to reviewing their recommendations.”

The four-page list of recommendations covers specific legislative and regulatory proposals on rate filings and company practices.  It concludes suggesting continued funding for the My Safe Florida Home Program and the Insurance Capital Build-Up Incentive program.

 

Statement by Florida Insurance Commissioner Kevin McCarty on Recommendations by Senate Select Committee on Property Insurance Accountability

TALLAHASSEE, Fla. — “I want to express my deep appreciation for the hard work and support of the Select Committee and its co-chairs, Sen. Atwater and Sen. Geller. The Committee reached an impressive level of detail in its analysis of the complex issues involved in the insurance company rate filings and the other issues it examined. 

“The proposals outlined by the Committee are very positive, because of the overall increase in consumer protections they would offer.”

On specific Select Committee proposals:

“Clarifying the law that only hurricane models that have passed an independent review process may be used and putting limits on profit and reinsurance charges would protect consumers from unwarranted rate increases. 

“Permanently repealing the “use-and-file” rate increases, eliminating the industry-friendly arbitration process and prohibiting the introduction of new evidence at administrative hearings all will require insurers to justify their rate increase requests when they first make their filings with the Office of Insurance Regulation. 

“The proposal on the non-renewal of policies is important for consumers, because it would stop companies from reducing risk through the use of non-renewal programs but then not reducing rates accordingly.  

“I applaud the work of the Select Committee and look forward to working with the standing committees during the legislative session.”

 

 

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

 

To unsubscribe from this newsletter, please send an email to ccochran@cftlaw.com