State Panel Urges Tougher Property Insurance Regulation

TALLAHASSEE - Private property insurers could find their profession more tightly regulated in Florida if lawmakers adopt a series of proposals recommended Thursday by a special Senate panel investigating the industry.

One recommendation would prevent companies that base rates on approved hurricane loss models from modifying the model. The companies also would have to tell regulators how many policies they plan to cancel when they request to increase their rates.

Moreover, companies would not be allowed to raise rates until state officials approve the increases, a practice that is currently allowed.

Other recommendations include providing additional money for a state program to give free inspections and matching dollars for people who want to harden their homes against storms.

Belinda Miller, deputy commissioner of the Office of Insurance Regulation, said the recommendations would beef up the state's ability to oversee the insurance industry.

"These are crystal clear and everybody has to follow the same rules," Miller said.

An industry spokesman, however, said lawmakers are headed down the wrong path.

"Things like this fly in the face of a state trying to get new capital from outside of Florida bring new companies into Florida," said Sam Miller, executive vice president of the Florida Insurance Council.

Florida regulators and a handful of commercial companies, most notably Illinois-based Allstate, have squabbled over differences on rates.

Allstate is among a dozen companies that already have had rate increases rejected while another 24 companies are petitioning rejections.

A total of 69 insurers have been approved since the passage of legislation 13 months ago aimed at lowering property insurance rates.

The Senate Select Committee on Insurance Accountability was created in January after lawmakers became concerned that some companies were attempting to circumvent, if not ignore, provisions of the legislation designed to lower rates.