TALLAHASSEE, Fla. (AP) – May 7, 2009 – Gov. Charlie Crist said Tuesday he’ll sign legislation that boosts property insurance rates by 10 percent on more than 1 million customers of the state-backed Citizens Property Insurance Corp.
“It’s trying to make sure that we stabilize the insurance market and the viability of Citizens Property,” he said. “I think their incremental approach is prudent.”
Supporters of the legislation (HB 1495) said Citizens customers would have been looking at rate increases between 40 percent and 55 percent on Jan. 1 if lawmakers didn’t produce legislation for 10 percent increases spread over several years.
The bill also reduces the state’s $20 billion exposure on the Florida Hurricane Catastrophe Fund by phasing out the upper levels of a state backup pool by $2 billion a year over a six-year period.
“That’s wonderful,” said Sam Miller, executive director of the Florida Insurance Council. “We need to be able to rely on the ‘Cat’ fund again.”
He said it also lifts Citizens’ rate freeze done by the Legislature in 2007.
The Office of Insurance Regulation, which makes decisions on rate filings, also applauded the legislation.
“The need, obviously, is there for Citizens to increase its rates,” OIR spokesman Ed Domansky said Tuesday. “It’s important that Citizens’ rates reflect actuarial soundness to better ensure its customers that claims will be paid.”
Copyright © 2009 The Associated Press.
No comments:
Post a Comment