According to an article in the WCTV Tallahassee Headlines, only about half of the insurance companies doing business in Florida had complied with a new rate filing law by the beginning of business Monday. Insurers are supposed to pass property insuraqnce savings on to consumers from the states assumption of $15 billion in risk. &nsbp;So far, the results are mixed.
“We’ve seen some increases and we’ve seen some decreases ... on their original filing from March,” said an Office of Insurance Regulation spokesman.
The most upsetting has been the request by Allstate Insurance for an average 42% hike with another 28% hike for a subsidiary. These filings come at the same time the state has issued subpoenas to insuracne companies to find out why rates have not decreased as expected.
When asked about the insurance company filings to this point, Gov. Charles Crist said, “It does look like a violation of law when they put in for increases and don’t pass on the saving they’re supposed to do under the great reforms Senate President Pruitt and Speaker Marco Rubio had the courage to put through in the special session in January”.
The good news for policy holders is that any property insurance rate increases will take effect until they are approved and the governor says is doubtful. "I don’t think those increases will be approved, so they won’t have to pay it,” Gov. Crist said.
Some of these rate increase requests are being driven by insurance ratings services who are also under investigation for possible collusion in setting insurance rates.
