By Julie Patel January 7, 2011 10:25 AM
South Florida Sun-Sentinel
A sweeping property insurance package vetoed last year due to concerns about costs to consumers will be resurrected this year.
State lawmakers drafting insurance measures are encouraged by Gov. Rick Scott’s push to eliminate regulations that aren’t needed and to create a business-friendly environment in the state.
Sen. Mike Bennett, R-Bradenton, who proposed a measure to effectively deregulate insurance rates last year, said he’d also like to see insurance deregulation included in the larger insurance proposal. “Now is the time,” he said. If insurers charge too much “you’ll go shopping. Too little and that insurance company” folds, said Bennett, who is Senate President Pro Tempore this year. He added that he’s been hit with rate hikes in recent years like many policyholders across the state: “I own quite a bit of real estate. It kills me. At the same time, if a storm hits I want to make sure that company is going to” pay claims.
The House insurance committee on Wednesday will discuss two state insurance programs, Citizens Property Insurance and the Florida Hurricane Catastrophe Fund, as well as problems facing insurance companies in Florida.
The Senate insurance committee on Tuesday will discuss the idea of creating a fourth state insurance program to deal with sinkhole claims, which insurers say are driving rate hikes. The Senate staff issued a report this week recommending the state handle claims and repair homes damaged by sinkholes.
Sen. Garrett Richter, R-Naples, who is chair of the committee, said it’s not “necessarily a bad idea.” But he said he prefers the staff’s alternative recommendation to change provisions in state law to help insurers reduce costs related to sinkhole claims, including some that are frivolous. “I’d like us to pursue [that] before we expand the government,” Richter said. He said he is also supportive of the deregulation concept.
Consumer advocates question the need for the legislation in light of a decrease in the cost of catastrophe back up coverage and higher profit margins for insurers nationally. Bill Newton, executive director of Florida Consumer Action Network, wrote on his blog that the message on sinkholes is: “You’re having too many of them, so you’re going to have to prove, really prove that that’s what is destroying your home. Expect this to be part of a trend toward insurance companies not paying claims without a heck of a fight. No more good neighbor.”
Public insurance adjusters, hired by policyholders to represent them on claims, said they want to see more legislation aimed at helping insurance consumers instead of companies.
http://weblogs.sun-sentinel.com/business/realestate/housekeys/blog/2011/01/legislators_time_is_ripe_for_i.html
