Posted On: June 9, 2009, 8:08 pm CDT

Posted By: Arthro

Almost...

Insurers should be able to charge as high a premium as they want. If they want to be competitive, they will find the market will dictate the rates, which is a cornerstone of our free market system. If they are too high, clients will leave them left and right in favor of other options. Remember, no one has ever been forced to purchase a policy from State Farm, even though Crist says they charge more than anyone else. If that's the case, why have they been the largest insurer in Florida for decades? It's because people use other factors in addition to price when making purchasing decisions, such as a company's ability to pay it's claims, the experience of the claims organization, or their relationship with their agent.

However, if their price is too low, the insurance dept needs to regulate their premiums to make sure they will be solvent and able to pay claims. The insurance dept should also regulate claims and underwriting practices.

Don't know what you're talking about in regards to Obama, but the primary problems with the Florida property insurance market were created by Charlie Crist, in my opinion.