Please remember: if you have any questions on insurance or finance issues, you may call our consumer helpline at 1-800-342-2762.  Trained consumer specialists are available to help you with your concerns. 

Sincerely,

Alex Sink

Alex Sink
Chief Financial Officer
State of Florida

STATES DISCUSS REGIONAL CATASTROPHE FUND

This Thursday, I traveled to the National Association of Insurance Commissioners’ (NAIC) Multi-State Catastrophe Fund meeting in Atlanta. The meeting was called by insurance commissioners from various states to discuss the critically important issue of a regional catastrophe fund that could serve as a financial “backstop” for states confronting large-scale catastrophes.

Representatives of Louisiana, Mississippi, Alabama and other coastal states discussed and reflected upon their states’ experience dealing with Hurricane Katrina and its aftermath. Other states, such as Nebraska and Rhode Island discussed the catastrophes affecting their residents. There were informative presentations the cost and scope of regional catastrophes (hurricanes, earthquakes), mitigation science and the benefits of mitigation, the history of NAIC’s advocacy for a national catastrophe program, the NAIC interstate insurance compact, and the structure and governance of a multi-state catastrophe fund compact.

While there, Florida Insurance Commissioner Kevin McCarty and I spoke with regulators, insurance companies, reinsurance companies and other stakeholders about how we could bring the coastal states together to help stabilize our insurance markets. It was invaluable to speak directly with elected insurance commissioners from other states about our need to find long-term solutions to the current crisis in the property insurance market.

It will be difficult, but not impossible, for us to develop this initiative with other states. In the coming months, I look forward to keeping you updated on the progress of a regional catastrophe fund.
 

Alex Sink
Chief Financial Officer
State of Florida

CFO WEIGHS IN ON AUTOMOBILE INSURANCE

CFO Alex Sink delivered Friday the following letter to Commissioner Kevin McCarty regarding the recent hearing on education and occupation as rating variables in automobile insurance policies:

February 16, 2007

Mr. Kevin McCarty
Insurance Commissioner
Office of Insurance Regulation
200 East Gaines Street
Tallahassee, FL  32399 

Dear Commissioner McCarty: 

Thank you for holding a hearing last week to evaluate how education and occupation are currently being used as rating factors in automobile insurance policies.  I share your concern that these factors have the potential to unfairly discriminate against minority or low income residents of our state and respectfully request your careful consideration of testimony presented by Mr. Stephen Alexander of the Insurance Consumer Advocate’s Office.   

In particular, I respectfully request your attention to the following recommendations:  CONTINUED

SECOND MEETING OF THE WINDSTORM MITIGATION STUDY COMMITTEE HELD

The second meeting of the legislatively-created Windstorm Mitigation Study Committee was held on Thursday, February 15, 2007, in Tallahassee.

The committee was created as a result of House Bill 1A, passed recently by the Florida Legislature during Special Session. The committee is comprised of eight members, with two appointments each from the Governor, Chief Financial Officer, Senate President and Speaker of the House. The following Floridians have been appointed to the committee:

• Garrett Walton, Chair (Governor)
• Bill Coffey, Services Director of Home Services, Home Depot (Governor)
• Mr. James Ayotte, Florida Manufactured Housing Association (Chief Financial Officer)
• Mr. Ed Dees, former Business Manager for Ironworkers, Local #397 (Chief Financial Officer)
• Mr. Michael Aranda, EH Building Group II, LLC (Senate President)
• Mr. Stephen C. Burgess, Office of Public Counsel (Senate President)
• Deirdre Finn, Meridian Strategies, LLC (Speaker of the House)
• The Honorable Trey Traviesa, Florida House of Representatives (Speaker of the House)

The committee is charged with analyzing short- and long-term solutions and programs that address the need to immediately and effectively mitigate homes in Florida. A final committee report, including legislative recommendations, is due to the Governor, Chief Financial Officer, Insurance Commissioner, Senate President and Speaker of the House by March 6, 2007. Floridians can learn more about the committee, its duties and upcoming meetings at http://www.WindstormMitigationStudyCommittee.org. Floridians interested in hurricane mitigation are encouraged to attend the meetings.

CFO SINK RESTRICTS PUBLIC ADJUSTERS FROM COLLECTING FEES ON RESIDENTIAL PROPERTY DECLARED A TOTAL LOSS

Public adjusters are not affiliated with any insurance company and are hired by the consumer for a fee, which is usually a percentage of the claim payment. The emergency rule can be viewed at http://www.MyFloridaCFO.com/Agents/Emer-Rules/Emerg_Rule_Torn-Pub-Adj_02_07.pdf.  To find out more about public adjusters or get help with filing an insurance claim, call the Department of Financial Services at 1-800-22-STORM (1-800-227-8676) or log on to www.MyFloridaCFO.com. 

“Public adjusters provide a service when consumers feel they cannot negotiate with their insurance company on their own,” CFO Sink said.  “We simply want to make sure that no one takes advantage of the financial and emotional turmoil these victims are facing.” CONTINUED

CFO ALEX SINK
OFFICE OF CABINET AFFAIRS