Published
Monday, March 17, 2008 5:49 PM
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Take
action to protect our insurance rates | March 14, letter
Insurance
reform is still under way
It is ironic
that on the day after the Florida Senate's Select Committee on Property
Insurance Accountability presented its legislative recommendations to the
Florida Legislature, the referenced letter was published stating that Florida's
insurance problems are no longer in the headlines.
I would
beg to differ. Whether or not the issue is on the front page of every paper is
of no consequence. The issue itself is still a crisis in
When I was
appointed by the Senate president to serve on the Select Committee I did so
with wholehearted enthusiasm knowing that immediate solutions to the problems
that have plagued our state would be the result.
Now that
those ideas have been presented to the Senate Banking & Insurance
Committee, I would expect a hearing in the near future to consider the needed
proposals put forth by the Select Committee and then bringing the proposal to
the Senate floor for approval.
The
proposals include giving the Florida Office of Insurance Regulation the
authority to impose a daily fine on insurance companies that do not come in
compliance with the Insurance Code and follow the law. Additionally, the
proposal includes an increase in fines of up to $100,000 per day for insurance
companies that engage in unfair methods of competition. Insurance companies
must be held accountable and must follow the law.
Further,
the Select Committee proposes that the practice of "use and file" be
permanently suspended. This practice basically allows an insurer to implement a
rate increase and then file for permission to implement the new rate. Insurance
companies should not be allowed to raise rates first and then ask for
permission later.
Our
proposal will include that arbitration be permanently banned as a means in
which to settle a rate challenge. Currently, arbitration panels (that are not
accountable to anyone) have usurped regulators' ability in several cases to
increase homeowners insurance rates. This process bypasses state regulations.
The sole responsibility for setting rates will once again rest with the Office
of Insurance Regulation and the commissioner, where it should be. Insurance
companies will not have the ability to go around state regulators to increase
rates that are unaffordable to the homeowner.
It is my
hope that these and other ideas, such as my Senate Bill 400 which will prevent
the practice of cherry-picking in
Have no
doubt, rate payers, that the issue of insurance reform is alive and well in
Sen.
Mike Fasano,
New Port Richey