Florida Gov. Charlie Crist has said he would sign legislation passed at the eed of the legslative session that increases property insurance rates by 10 percent on more than 1 million customers of the state-backed Citizens Property Insurance Corp.
Crist said that helping Citizens reach actuarial soundness should help stabilize the market, which offsets the rate hike in his view.
Supporters of the legislation (HB 1495) said Citizens customers would have been looking at rate increases between 40 and 55 percent on Jan. 1 if lawmakers had not produced the legislation that allows 10 percent hikes 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.
“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.”
“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.”
The Office of Insurance Regulation also applauded the legislation. “The need, obviously, is there for Citizens to increase its rates,” OIR spokesman Ed Domansky said. “It’s important that Citizens’ rates reflect actuarial soundness to better ensure its customers that claims will be paid.”
Topics Florida Legislation Property
Was this article valuable?
Here are more articles you may enjoy.
Florida Surplus Lines’ HO Premiums Now Average About the Same as Admitted Market 
Stomach Bugs, Not Hantavirus, Are the Bigger Threat on Cruises 
Uber and FedEx Get Green Light for Racketeering Suit Against Lawyers, Doctors 
South Florida Police Officers Sue Actors, Say Details in ‘The Rip’ Are Too Real From This Issue
