Senate looks to regulate insurance

As you may recall from previous reports, the Senate Select Committee on Property Insurance Accountability recently conducted an inquiry into why insurance rates were not reduced as much as expected based on legislation passed in 2007. Insurance executives and chief actuaries were subpoenaed and testified under penalty of perjury during this inquiry.

I was appointed as a member of the Select Committee and had the opportunity to ask some of the questions which folks in Northwest Florida wanted answered under oath. The complete text of the hearings are available by clicking here.

As a result, the Senate is considering a series of actions including a moratorium on cancellations, strengthening the excess profits law, linking mitigation of risk by property owners to reduced rates, and stopping companies from using unapproved loss models as a way of justifying non-renewals or rate increases. Attached is a letter and a memo from Committee Co-chairs Jeff Atwater and Steve Geller laying out these reforms and below is an article from the Orlando Sentinel.

Attached also please find SB 2362 (increased penalties for insurance companies) and SB 2306 (rate reductions linked to lower windstorm ratings). I am pleased that Senator Atwater has agreed to include these bills, which I am sponsoring, in the actions he is recommending to the full Senate.

Thank you for continuing to stay in touch with me on this issue. Your comments, criticisms and guidance help me be a better senator.