Volume 2 Number 10
March 7, 2005

Last Wednesday we heard from nearly 1,000 panhandle residents at a town hall meeting in Pensacola. Time and time again, people recounted that their insurance companies are unresponsive, stalling payments or low-balling claims. It’s been nearly six months since Hurricane Ivan hit this community. These people have had enough and so have I.

Among the issues are insurers failing to show for state-ordered mediation with policyholders, or companies sending representatives who aren’t authorized to make a settlement offer. Others are sending policyholders partial settlements mislabeled as "final payment." These practices are unconscionable.

As I listened to story after story about companies not taking care of their policyholders, the names of five insurance companies came up repeatedly. As a result, I am meeting this week with the executive officers of Universal Property and Casualty Insurance Company; Vanguard Fire and Casualty Insurance Company; Capital Preferred Insurance Company; First Protective Insurance Company; and Citizens Property Insurance Corporation.

Another issue raised in Pensacola that is hampering hurricane victims is inconsistent application of the valued policy law when there are losses from both flood and wind. Some of the confusion stems from differences of interpretation of legal precedent arising out of a 2004 District Court case called Mierzwa. A class action has been filed in Leon County that should clarify the applicable law in these circumstances. In an effort to expedite this matter, I strongly urge Citizens Property Insurance Corporation to cooperate in establishing the class which should provide a clarification of Mierzwa and other related cases.

On Thursday, we’ll be in Sebastian talking with residents struggling to recover from two storms, Frances and Jeanne, then on Saturday we will be in Punta Gorda.

Let’s keep our Florida neighbors trying to rebuild in our thoughts and prayers.

Okeechobee County's historic courthouse, built in 1925, sits next to the county's new state-of-the-art courthouse, scheduled to open this spring.

GALLAGHER THANKS FINANCIAL SERVICES INDUSTRY, CABINET FOR SUPPORT OF DELINQUENT PARENT TRACKING PROGRAM

Florida’s Chief Financial Officer Tom Gallagher presented a Cabinet resolution thanking Florida’s commercial and savings banks, credit unions and securities dealers for their efforts during the past five years to help the state collect child support payments from delinquent parents.

“Through this voluntary partnership, the State of Florida has been able to collect and distribute millions of dollars annually to benefit Florida’s children with such necessities as food, shelter, clothing, medical and educational requirements,” Gallagher said. “Florida’s financial services industry has willingly established programs and dedicated resources toward this effort, and the result has been an improved quality of life for children.” CONTINUED

CONSUMER ALERT

BEWARE OF PROMISES OF FAST CASH THIS TAX SEASON

As W-2 forms hit the mailboxes of millions of Floridians, state Chief Financial Officer Tom Gallagher is warning consumers to be wary of refund anticipation loans - loans that offer cash up front by borrowing against your anticipated tax refund from the Internal Revenue Service (IRS).

“Money today may sound attractive but signing up for quick refund services can be very costly to consumers,” said Gallagher. “I’m urging Floridians to beware of the fees and interest rate associated with a refund anticipation loan.”

Consumers may fall prey to refund anticipation loans with promises of “instant refunds” or “quick cash.” Loan fees range from $30 to $105, with administrative fees between $25 and $60 often tacked on to the loan. The effective Annual Percentage Rates (APR) for these loans may start at 60 percent and be as high as 700 percent. CONTINUED