By Paul Flemming, Florida Capital Bureau
Posted in the Florida Capital News
March 18, 2010
A proposal to allow property-insurance companies to raise homeowners rates without regulatory approval passed a first House committee Wednesday and was amended to include much of an insurance industry wish list.
Its supporters say the proposal would attract more insurance capital to the state and increase options for consumers. A less-ambitious version passed last year was vetoed by Gov. Charlie Crist, who says he's still against it.
Rep. Bill Proctor's current bill would allow companies to charge rates beyond those approved by regulators, with important exclusions. Florida's largest property insurer, state-run Citizens Property Insurance, is excluded, as are the policies private companies have taken over from Citizens. Also excluded from unregulated rate increases would be policies that don't cover wind damage.
"The question, really, in my mind remains, does this broaden consumer choice . . . (and) is it possible it might attract some additional surplus" investment in the state, Proctor said.
Insurance Consumer Advocate Sean Shaw said he understood a need to find a balance among the interests of consumers and the industry, though he said the bill goes too far.