Florida Insurance Commissioner Kevin McCarty has officially adopted the ruling of an administrative law judge who rejected a 30.3 percent property insurance rate increase sought by Florida Farm Bureau.
“Rulings like this, and the one we received on the Hartford case, further help us in our efforts to protect Florida consumers from unnecessary and unsupported property insurance rate increases,” said McCarty. “I’m very pleased with the judge’s ruling.”
As part of HB 1A, passed by the Florida Legislature in January 2007, the Florida Hurricane Catastrophe Fund (CAT Fund) was expanded to $28 billion — a $12 billion increase — and insurers were requested to purchase cheaper reinsurance from the increased CAT Fund and pass the savings along to policyholders.
Farm Bureau initially reduced its rates by an average of 24.9 percent, effective June 1, 2007. But, with its May 10, 2007 filing, Farm Bureau requested an average increase of 30.3 percent.
According to McCarty, of the 200-plus insurance companies that made HB 1A filings in the fall of 2007, only two companies – Farm Bureau and Hartford – brought their cases before administrative law court.
The Farm Bureau matter was heard in January at the Division of Administrative Hearings by Judge Susan B. Harrell, who disapproved the rate filings in an April 1 order.
Farm Bureau may appeal the order to the District Court of Appeal within 30 days.
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