Volume 2 Number 41 October 10, 2005

I applaud Insurance Commissioner Kevin McCarty’s decision to disapprove rate increase requests from Allstate Floridian Insurance Company and Allstate Floridian Indemnity Company.   This is great news for Allstate’s policyholders. We will continue to closely scrutinize rate requests and demand accountability. In June, I called for an independent review of Allstate’s rate requests and criticized Allstate’s pursuit of higher rates on the heels of dropping 95,000 of their policyholders.  The independent review, conducted by the Consumer Advocate’s Office, was published in August and forwarded to the Insurance Commissioner’s Office.  The review revealed that these Florida-only companies were attempting to justify their rates based on losses from other states and had not adequately documented how the reduction of 95,000 policyholders was factored in their rates.    At that time, I urged the Insurance Commissioner to stop Allstate from billing Florida homeowners for an unapproved, excessive rate increase.  In the wake of multiple hurricanes, I recognize that there will be pressure on insurance rates.   But it is mission critical for Florida homeowners that we continue to aggressively scrutinize rates while also pursuing solutions for enhancing competition so consumers have choices.

GALLAGHER URGES FLORIDIANS TO CHECK OUT A USED CAR’S HISTORY BEFORE BUYING Scam Artists May Try To Sell Flood-Damaged Cars in Florida   Tom Gallagher, Florida’s chief financial officer, today cautioned Florida’s consumers and auto dealers to beware of buying used vehicles that may have originated from areas flooded by Hurricane Katrina, and potentially Hurricane Rita.  Officials estimate that 350,000 vehicles were flooded in New Orleans alone from Hurricane Katrina, and up to 500,000 vehicles could have sustained flood damage throughout Louisiana, Mississippi and Alabama from this storm.  Many of these vehicles are shipped to other states, including Florida, through car wholesalers.   “While most states, like Florida, require vehicle titles to bear brands of ‘flood vehicle’ and ‘salvage/rebuilt,’ some wholesalers may intentionally transfer titles to avoid branding since it diminishes a vehicle’s value,” said Gallagher.  “The unsuspecting consumer doesn’t know whether the vehicle has been totaled or even adequately repaired, potentially putting loved ones in danger.”  CONTINUED

GALLAGHER CALLS FOR ADDITIONAL $500 MILLION IN SAVINGS FOR FLORIDA’S SMALL BUSINESSES   Tom Gallagher, Florida’s chief financial officer, called for greater savings for Florida’s small businesses based on an independent review of proposed workers’ compensation rates for the state. Gallagher said that the proposed decrease of 7.2 percent in workers’ compensation rates by the National Council on Compensation Insurance (NCCI) should be a 22 percent cut.  The rate cut would boost estimated savings for Florida employers from $237 million to $726 million.    “We fought for and passed meaningful reforms to the state’s workers’ compensation system in 2003 and, as a result, we are seeing dramatic savings for our small businesses,” said Gallagher.  “When we lower costs for Florida employers, we boost job creation and opportunity for Florida’s working families.  Our independent review reveals that greater savings should be realized by Florida employers.”  CONTINUED

CFO TOM GALLAGHER ON NEED TO INCREASE TRANSPARENCY AND ACCOUNTABILITY AT CITIZENS PROPERTY INSURANCE CORPORATION  Tom Gallagher, Florida’s Chief Financial Officer, today proposed several recommendations for improving the transparency, oversight and accountability of Citizens Property Insurance Corporation to the Financial Services Commission.  The Financial Services Commission is made up of the governor, attorney general, chief financial officer and agriculture commissioner. “I’m deeply concerned with the recent problems that have occurred with Citizens Property Insurance Corporation, including staffing and organizational issues, and these issues need to be immediately addressed. CONTINUED

PANHANDLE FIRST RESPONDERS GET METH LAB TRAINING About 100 first responders from throughout Northwest Florida took a three-day training program on how to identify, investigate and dismantle a methamphetamine laboratory.  The State Fire Marshal’s Office is providing the program for free to help prepare law enforcement officers and firefighters to respond to meth labs housing combustible chemicals and deadly booby traps.  “Methamphetamine addiction tears families apart and destroys lives,” said Tom Gallagher, who serves as state fire marshal and initiated the free training.  “And those who make meth are the equivalent to the makers of any terrorist bomb anywhere in the world.”  CONTINUED