CFO SINK TO MEET WITH BRITISH LEADERS IN LONDON IN NOVEMBER

Florida Chief Financial Officer Alex Sink announced that her office has been invited by Keith Allan, Her Majesty’s Consul General of Miami, to meet with British leaders in London in early November.

During her visit, which is sponsored by the British Government, the CFO will meet with representatives of the United Kingdom and the City of London to understand their success in confronting the challenges presented by climate change in the finance and investment sectors. CFO Sink will also meet with experts at the London School of Economics and the Royal Bank of Scotland to learn how climate change presents both insurance and financial risks as well as investment opportunities for Florida. The CFO will also visit the London office of Enterprise Florida.

While abroad, CFO Sink will meet with Lloyd’s of London to discuss the Florida Hurricane Catastrophe Fund and the impact that private reinsurance has in Florida’s property insurance market. According to Lloyd’s, “The issue of climate change will be vital to the future of the insurance industry. Since the 1960s the number of natural catastrophes has doubled and insured losses increased nearly seven-fold...we must engage better together and that means insurers, business and government working together.”

“With 1200 miles of coastline, Florida is one of the most vulnerable states to the effects of climate change and rising sea levels. It is essential that Florida is prepared for all the challenges -- and as Florida’s Chief Financial Officer I am specifically aware of the challenges to our insurance and financial markets,” said CFO Sink, who oversees the Department of Financial Services. “London is the epicenter of the world’s global financial and reinsurance markets and the United Kingdom is an international leader in analyzing and combating the financial risks of climate change. Florida can benefit from our shared partnership.”

In April 2007, Consul-General Allan presented the United Kingdom’s international perspective on climate change at the Florida Cabinet’s first Climate Change workshop sponsored by CFO Sink and Agriculture Commissioner Charles Bronson.

“Action to address the global impact of climate change is a top international priority for the British Government. We have been hugely impressed by the leadership shown by Governor Crist and CFO Sink in putting Florida at the forefront of global efforts to combat greenhouse gas emissions and develop alternative energies, and were pleased to sign a Partnership with Florida at the Climate Change Summit in Miami in July.

“I have discussed the impact of severe weather conditions on the insurance sector in Florida with Chief Financial Officer Alex Sink. The British Consulate-General is delighted to be able to support the CFO's visit, which we believe will bring real benefits to the people of Florida.”

CFO SINK: MSFH PROGRAM HELPS MORE THAN 66,000 HOMEOWNERS SAVE AN AVERAGE OF $154 ON THEIR WIND INSURANCE PREMIUMS
Potential savings for homeowners exceeds $11.2 million statewide

Florida Chief Financial Officer Alex Sink announced today that 74.5 percent of homeowners who have received a free wind inspection through the My Safe Florida Home (MSFH) program are eligible for significant savings on their annual wind insurance premiums.

The MSFH program has projected that 66,461 homeowners out of 89,268 to date are eligible to receive a wind insurance premium discount or credit, with an average statewide savings of $154.51 based on an average statewide wind premium of $946.44. Sink’s announcement reflects a potential savings statewide of $11.2 million and is based on the current structure of the home during the free MSFH wind inspection.

“At a time when many Floridians are struggling with the cost of insurance, we are finding that thousands of Floridians are able to save money on their wind insurance premiums without making a single improvement,” said CFO Sink who runs the Department of Financial Services which oversees the MSFH program. “I encourage all eligible Floridians to sign-up for a free wind inspection to learn if they might be eligible to save money on their property insurance.”

Statewide, 74.5 percent of homeowners who have received an inspection from the MSFH program are eligible for a discount of 16.3 percent on their wind insurance premiums. Savings vary widely by region, as homeowners with higher wind insurance premiums can realize greater savings. For example, homeowners in South Florida are eligible to receive an average savings of 19 percent off their wind insurance premium, or $385. Linked is a county-by-county breakdown of eligible homeowners, http://www.mysafefloridahome.com/images/InspectionDiscount.pdf along with average potential savings on annual wind insurance premiums.

Some homeowners may already be receiving all or part of the mitigation credits for which they are eligible; however, in many cases, the MSFH program is assisting homeowners who are not receiving full credit based on the current structure of their home. To assist homeowners, the MSFH program provides eligible program participants with certified mitigation forms, which can be given to the homeowners insurance company in order to receive the estimated savings. A sample mitigation form that homeowners will be receiving can be found http://www.mysafefloridahome.com/MitForm.asp. Homeowners who might experience any difficulties with their insurance companies are encouraged to contact the Department of Financial Services helpline at 1-800-342-2762.

To date, the MSFH program has completed 89,268 inspections. More than 106,000 Florida homeowners have signed up for free wind inspections through the program, signifying the program has exceeded 25 percent of its long-term goal of 400,000 free wind inspections in the next two years.

Any Floridian who lives in a single-family, site-built home is eligible for a free wind inspection through the MSFH program, which helps Floridians identify how they can strengthen their homes and reduces the overall potential for hurricane damage in our state. Floridians can apply on-line at www.MySafeFloridaHome.com or by calling the program toll-free at 1-866-513-6734. Homeowners who receive free wind inspections through the MSFH program will receive a detailed inspection report, complete with additional information on estimated insurance premium discounts, if the homeowner is eligible.

Additionally, some Florida homeowners receiving free wind inspections may be eligible for matching grant reimbursements of up to $5,000 to make recommended improvements. To be eligible, the Legislature requires that homeowners: have received a completed wind inspection after May 1, 2007; live in a single-family, site-built home built before March 1, 2002; have a valid homestead exemption; have an insured value of $300,000 or less; and be located in the wind-borne debris region. Additionally, while the free wind inspections will still cover seven potential wind-resistance improvements, matching grants may only be applied to opening protections, including windows, exterior doors and garage doors, as well as the bracing of gable ends.

CFO SINK ADDS LINK TO MYFLORIDACFO.COM TO GUIDE FLORIDIANS ON EQUITY INDEXED ANNUITIES

Florida Chief Financial Officer Alex Sink has created a link at MyFloridaCFO.com

to help consumers better understand equity indexed annuities, which have become big sellers despite being a relatively new and complex annuity product. Annuities were the subject of a hearing Wednesday before the United States Senate’s Special Committee on Aging that addressed reported marketing abuses.

Often touted as a way for investors to realize stock-market-like gains without the risk, equity indexed annuities have proven confusing to some investors who have complained to the Department of Financial Services Consumer Helpline of being misled about how the product works or not having their expectations met. These products can come with hidden penalties, costs and fees, and hefty multi-year surrender charges and may not be ideal for some senior citizens.

“As with any investment product, it is important for consumers to read and understand any document before signing and get all agreements in writing,” said CFO Sink, who oversees the department. “Our aim in providing this link is to help consumers ask the right questions to protect themselves and invest their money in a way that best serves their needs.” 

To view the Equity Indexed Annuities link, go to MyFloridaCFO.com and click on the Equity Indexed Annuity Alert button on the right side of the home page. The link includes definitions of key terms relating to equity indexed annuities, explains fees and charges that may be incurred, points out important questions to ask and provides warning signs of potential fraud. Consumers with questions or complaints regarding equity indexed annuities should call the department's Consumer Helpline at 1-800-342-2762 or log on to MyFloridaCFO.com.

In July, CFO Sink revoked the license of a south Florida insurance agent and ordered him to pay a $40,000 fine for targeting senior citizens between the ages of 75 and 90, some suffering from dementia, for the sale of unsuitable annuity products. In one instance, Joseph John Ripa, 48, convinced an 83-year-old retiree seeking supplemental retirement income to invest his entire liquid net worth in an equity indexed annuity that provided no immediate income and carried 13 years of surrender charges as high as 17 percent.

Ripa was aware that the products he was selling were unsuitable for the seniors he targeted, but concealed that fact by failing to disclose to his clients the applicable surrender charges and penalties, along with other potentially harmful features of the products.