Florida Insurance Commissioner Kevin McCarty is requiring United Property & Casualty Insurance Co. to refund millions of dollars in unapproved homeowners’ insurance rate increases.
Last October, United began charging higher insurance rates before the Florida Office of Insurance Regulation officially approved the increase. The practice was allowed under Florida law at that time and was referred to as a “use and file” increase. However, the law also stated that after the OIR reviewed the increase and if it determined that it was too high, it had the authority to require the company to return the difference between the original rate charged and the rate ultimately approved. Based on the latest rate collection data, the estimate of the difference is $43,249,714.
“Recent legislation in Florida prohibits property insurers from using use and file rates in the future, but United engaged in this action last year before it was banned,” McCarty said.
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