Florida’s fifth-largest insurer USAA, has filed a request to raise premiums by a statewide average of 10.3 percent, and David Foy, chief of staff for the Office of Insurance Regulation said he expects more companies to request rate increases this week and in upcoming weeks. When the Legislature’s 2005 session ended, so did a temporary moratorium on insurers’ rate filings.
“Just like everything, people are taking a new look at what we’re doing in the state of Florida because of lessons learned last year,” Lynne McChristian, a USAA spokeswoman told the Fort Lauderdale Sun-Sentinel.
Although companies may ask to raise rates, the new insurance laws aren’t expected to have a dramatic effect on premiums. In fact, one new provision addresses rates, requiring a public hearing on any request to raise rates by more than 15 percent.
Other parts of the law include creating a low-interest loan program so homeowners can strengthen their homes against a hurricane, prohibiting insurers from not renewing customers until at least 90 days have passed since repairs were made, and requiring companies to highlight discounts customers can get for home improvements.
Much of this won’t happen right away; in fact, some of it won’t occur until after this hurricane season ends in November. And if someone has a policy that renews before these regulations go into effect, they will have to wait even longer.
“I hope every consumer in Florida addresses their residential policies immediately, and assesses what changes they need before the storms come,” said Sen. Rudy Garcia, R-Hialeah. Garcia, chairman of the Senate Banking and Insurance Committee, helped shepherd the insurance legislation through the Legislature. ” … I hope the consumers don’t take for granted that the wind will be blowing really soon.”
Legislators expect they’ll come back and make more changes next year, after they’ve had time to see what effect the new laws have.
“I think we have the public’s attention over the next 12 months,” Sen. Ron Klein, D-Boca Raton, who also worked on insurance legislation this year, told the Sun-Sentinel. “I think the members of the Legislature will be under a lot of pressure to fix the system, and hopefully we’ll take the work we did this year and build on it.”
Topics Florida Legislation
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