Cincinnati Ins-urance Co.’s request to increase homeowners insurance policy rates by as much as 40 percent was denied in early July by Florida Insurance Commissioner Kevin Mc-Carty, who said the company failed to justify the increase. The Florida Office of Insurance Regulation held public hearings in Sarasota, Fla., during which more than 100 of Cincinnati’s 5,800 policyholders voiced their objection to the increase. The company may request an administrative hearing, arbitration, or modify its filing, according to a state press release.
In a related request, OIR said Allstate Floridian was justified in requesting a 9.9 percent average rate increase. Allstate convinced OIR that it needed the increase to cover its purchase of private reinsurance for the 2005 hurricane season. It also indicated an additional 18 percent increase is necessary to build up its capital to pay hurricane claims.
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