Amid consumer protest, Crist says he doesn't like insurance bill

Gov. Charlie Crist said this morning that he continues to have concerns about the property insurance bill (HB 1171) that allows for large, well-capitalized companies like State Farm, to go unregulated.

"To have that industry unregulated in essence is not something that is appealing to me nor is it fair to the customer,'' Crist said at a morning media availability.

Meanwhile, the Consumer Federation of the Southeast and the Florida Public Interest Research Group called on the governor Wednesday to veto the bill.

"This should be a no brainer veto,'' said Walter Dartland, director of the Consumer Federation. "It will allow the major property insurers to raise rates any way they want.''

He warned that when a similar deregulation was allowed for property insurance of condominiums, "State farm dramatically increased rates over several years and then decided not to renew the policies. There's no reason for me to think that anything different can happen here.''

Fasano clashes with Bennett, backs McCarty

Republican Sen. Mike Fasano of New Port Richey has rushed to the defense of state Insurance Commissioner Kevin McCarty, whose resignation was demanded by Sen. Mike Bennett of Bradenton in a letter to Gov. Charlie Crist.

"He is one of the most highly qualified and experienced individuals to hold this important post," Fasano said in a statement issued Friday from a legislative aide's BlackBerry. "Florida needs his steady hand to steer through the unique insurance challenges that continue to be part of Florida's landscape."

Fasano's statement did not mention Bennett by name, but he got his point across by ending this: "In a town in which insurance companies wield so much power, he (McCarty) has been a voice of reason and stability. During the many years I have worked with him he has never hidden his deep desire to make sure that consumer-friendly legislation and policy were his top priorities."   

-- Steve Bousquet

Remember that class action lawsuit against insurers?

Remember that class action lawsuit against insurers? We were reminded it of today when the Bradenton Herald mistakenly posted a very old Miami Herald story -- from Dec. 19, 2007 -- about the governor's office engaging the help of three big-name lawyers to consider suing the insurance industry.

His office had talked to Roberto Martinez, the former U.S. attorney from Miami who chaired Crist's transition team; Dexter Douglass, the former general counsel to Gov. Lawton Chiles who worked on the state's litigation against the tobacco industry, and Bob Hackleman, a Fort Lauderdale trial lawyer with Gunster, Yoakley & Stewart, to look into the lawsuit at no cost to the state.

When asked about it today, Gov. Charlie Crist was a bit taken aback. But the question is still legit: whatever happened to it?

"I'll have to get back to you on that,'' Crist said, saying he's referred it to Lt. Gov. Jeff Kottkamp. "I'm happy to report to you that property insurance rates are down...Overall, it's about 16 percent down -- rates -- across the board. We've essentially kicked out the bad actors.''

So you've ruled out a lawsuit? "No,'' he said.

J.D. cries foul; Citizens says no game

Sen. J.D. Alexander, R-Winter Park, shot off a letter to the state's insurance company Monday asking why Citizens Property Insurance thought it needed a fitness center and restaurant at its new digs once its lease on its Tallahassee office space expires in 2010.

".... the amenities under consideration for inclusion in the final contract, such as a fitness center, restaurant and concierge services, are of concern," Alexander wrote in his letter to Citizens board chairman, John Malone.

But Citizens' spokeman John Kuczwanski said the insurer isn't demanding the amenities be included, but asked about them in the RFP it issued. Citizens would like to consolidate its two current facilities in one campus with the new lease.

He noted that a few other state agencies are located in buildings where there is a restaurant facility such as the Department of Enviromental Protection, and the State Capitol has a cafeteria.

Besides, Kuczwanski said, the top two vendors who have responded to Citizens' request so far don't include restaurants, fitness centers, or conceirge services on their properties. He said it was more important to Citizens to find a building that is reinforced to withstand hurricanes, has generator back-up and can accommodate expanded IT facilities because the insurer would get up a catastrophe operations center there when major storms hit the state.

Kuczwanski said Citizens is negotiating with two vendors right now, but hasn't disqualified any vendor at this point. Citizens' staff would like to have a recommendation for the board of governors to consider at its next meeting on Oct. 24.

-- BEA GARCIA

State says it will reject State Farm's 47 percent rate hike

Florida Insurance Commissioner Kevin McCarty just announced that his office will reject the massive rate hike sought by State Farm. The company requested an average increase of 47 percent that would have meant rate hikes of as much as 63 percent or $8,300 in Dade County.

Deputy Commissioner Belinda Miller said that after the Aug. 12 public hearing and the subsequent review of State Farm's request, they determined the company couldn't justify the increase. State Farm now has 21 days to appeal. Download news_release_florida_office_of_insurance_regulation_issues_notice_of_intent_to_disapprove_proposed_rate_hike_for_state_farm_florida.htm 

Crist vetos Citizens transfer, complaining it leaves insurer vulnerable

Gov. Charlie Crist has vetoed the attempt by the Legislature to divert $250 million from the reserves of Citizens Property Insurance to entice private insurers to write more homeowner's policies by providing them with state-subsidized low-interest loans as back-up capital.

Crist commended the legislation for its "consumer protections" but he warned that by taking $250 million from Citizens' ability to pay claims "will substantially increase the likelihood of assessments for Floridians across the state.'' He said he "would not support risking an additional financial hardship on Floridians." Download property_insurance_2860.pdf

The insurance bill also freezes Citizens Property Insurance rates for another year and doubles fines state regulators can impose.

Court upholds ban on Allstate business until it obeys state

The First District Court of Appeals ruled Wednesday that the decision by Insurance Commission Kevin McCarty to suspend the company's license to write business in Florida was appropriate and denied the company's motion for a rehearing. Read full story here.

McCarty made the decision after Allstate refused to complie with a subpoena for documents and information about its property insurance line.

Crist to Realtors: Keep on keepin' on

Gov. Charlie Crist painted a bright picture of Florida's housing market Wednesday during a gathering of the Florida Association of Realtors at the Capitol.

He thanked the real estate agents for their influence in helping pass the property tax amendment that Florida voters approved on Jan. 29.

Besides property tax reductions allowed by the amendment, it also provides Florida homeowners with portability savings if they move into a pricier home. So far, 5,000 Broward County homeowners have applied for portability savings, and Crist said he's working to find out how many have applied statewide.

"It's all because of you," Crist said from the Capitol steps, adding that Florida needs Realtors now more than ever as the state's population has topped 19 million.

Atwater hits airwaves in reelection fight

State Sen. Jeff Atwater's reelection battle against Skip Campbell has hit the television airwaves with an ad that targets the state's insurance companies.

In the ad, called "Holding Insurance Companies Accountable," Atwater, a North Palm Beach Republican whose district includes the northern part of Broward's east coast, talks about putting some of the state's insurance executives under oath during state Senate hearings earlier this year.

"We learned they used loopholes to skirt the law," Atwater says in the 30-second TV spot. "That's unacceptable. We were promised lower premiums....What they're doing is wrong, and these big insurance companies will be held accountable."

View the ad here.

So far, Atwater, who is set to become the next Senate President, has raised more than $1.1 million against Democratic challengers Robert Ostrov and Campbell, who ran a failed bid for Florida attorney general in 2006.

Senate 'invites' 5 insurance execs to come clean at hearing

The Senate committee looking into the state's property insurance crisis has called its first meeting for Tuesday, Jan. 22 and has "invited" executives from five companies to testify under oath about their pricing practices and profits at two meetings in February.

The January meeting will hear from J. Robert Hunter, actuary and consumer advocate, and from the Office of Insurance Regulation. Here's the letter from Sens Jeff Atwater and Steve Gellr, co=chairman of the committee: Download invitation_letter.doc

Here's the list of execs: Download invitelettercontacts.doc