Sunday, May 10, 2009

More details on Florida's Insurance Rates going up

While Governor Crist hasn't YET signed it, details of the insurance regulation bill are available. Here are the highlights:
  • Citizens Property Insurance can aise rates a maximum of 10 percent annually until its rates are actuarially sound.
  • Increases rates 1 percent each year to recover the cost of extra payments to the Florida Hurricane Catastrophe Fund, required for rapid reserve build-up.
  • Florida Hurricane Catastrophe Fund
  • Reduces coverage sold by $2 billion over the next six years.
  • Implements a rapid reserve build-up program over the next five years. Insurers will pay additional premiums each year.
  • Allows small insurers to purchase additional coverage from the CAT Fund.
  • Allows private insurers to pass on up to 10 percent of their reinsurance costs to policyholders through expedited rate filings.
  • Prohibits insurers from raising rates and then filing the required paperwork with state regulators until Dec. 31, 2010.
Here's the full story from the Miami Herald.

I don't believe this news has fully reached the over 1 million Citizen's Insurance customers in the state as well as everyone else here that will face higher rates partly due to the hurricane activity in 2004-5 and to protect the state's emergency Hurricane Catastrophe Fund in the future.

Wait till Charlie signs the legislation and watch for the fireworks! This won't be good.

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