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FIC Statement regarding Senate Select Committee |
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01/10/2008 |
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IMMEDIATE RELEASE Contact: Sam Miller
Date: January 10, 2008 Executive Vice President
850.386.6668 Ext: 223
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Statement regarding Senate Select Committee
(TALLAHASSEE, FL)--Insurance companies writing policies to protect Florida families and businesses have abided by the laws of this state and will continue to abide by those laws. Insurance companies are bound, not only by HB 1A, the 2007 special session legislation, but also by the insurance rating statute, F.S. 627.062 and the Insurance Code, which is one of the toughest in the nation.
The Office of Insurance Regulation acknowledged in its presumed factor report last spring that company filings in response to the presumed factor would vary widely and this is exactly the case.
It is important to note that rate increases sought by some carriers have not taken effect. They were denied by the Office of Insurance Regulation. Companies and OIR now take their differences to the state Division of Administrative Hearings, and if there remains a dispute after the administrative judge's ruling, to the regular State of Florida Court System. This process should be allowed to work.
This is the dispute resolution process laid out in the Insurance Code, which, if anything, was tilted more in favor of the Office of Insurance Regulation with passage of HB 1A.
Arbitration panels - which were sometimes criticized as industry-dominated while we respectfully contend were neutral - are now suspended. Also suspended is use and file, an insurer's ability to implement rate increases while they are under review by OIR and the courts. The Florida Insurance Code is a tough process, but a fair process.
The Florida Insurance Council is always willing to share its ideas and information with the Florida Senate and the Florida House, on questions involving the compliance of insurance companies with statutorily-mandated actions or anything else.
It is our intention to work with the Select Committee as we have worked fully and closely with the Senate Banking & Insurance Committee. FIC and its member companies will use this opportunity to provide detailed, serious answers to the Senators’ questions about the economics of Florida windstorm insurance and we are confident that the Senate with give them a fair hearing.
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Florida Insurance Council is Florida's largest not-for-profit trade association representing 64 insurers groups consisting of 200 companies which write over $25 billion a year in premium volume and provide all lines of coverage.
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