Legislature says YES to Consumer Protections, but NO to rate reductions.

Sadly, this legislation does not address rate reductions. Besides the one year continuation of the Citizens rate freeze, Floridians will continue to have unbearable insurance premiums. I have heard from many of you that we must lower rates. However, I believe what passed this year will not achieve what many of you had mind, rate reductions. There are good consumer protections in this measure, but without rate relief, Floridians will continue to be crushed.

Following two destructive hurricane seasons (2004 and 2005) that resulted in nearly $36 billion in gross losses, we still have a grossly unstable property insurance market that is unaffordable. Floridians are being squeezed at the gas pumps with record gas prices, unfair property taxes, an ever-increasing cost of living and the ongoing burden of skyrocketing property insurance premiums.

In the last year, more Floridians have received notice from their private insurer that they will be dropped. Sadly, we are far from having a stable property insurance market. Allstate Floridian is in a court battle with the Office of Insurance Regulation because the department has disapproved their rate increase request.

In 2007, this legislature took positive steps to address an ailing market that witnesses unprecedented rate increases. The steps taken last January were aimed at stabilizing the crisis so Floridians could catch their breath. Our hope was that after the 2007 Special Session long term healing would follow as the legislature continued addressing meaningful reforms to achieve a healthily, stable insurance market. Unfortunately, baby steps have been taken to achieve rate relief and the reforms needed to have a stable insurance market.

This year, SB 2860 passed the legislature unanimously because of the good consumer protections in the bill. For example, the bill repeals for a year the practice of insurance companies to increase rates prior to obtaining approval by the office of Insurance Regulation. Also in the bill is the requirement for insurance companies to notify OIR 90 days before nonrenewing more than 10,000 policies in one year. More importantly is the requirement that insurance companies cannot drop a customer without a 6 month notification. Finally, SB 2860 extends the Citizens rate freeze until January 1, 2010.