Smiling JOe
11-27-2007, 11:21 AM
So this news is 10 days old, but this morning, it was on the local news that Allstate tried to push through a huge increase in Florida Homeowners' Insurance. In some cases, policy holders could see as much as 150% increase :blink: in rates, and on the low end, some may increase only 6%.
Source: Florida Office of Insurance Regulation
"Our action is based on a thorough review of the information previously provided by the companies and their testimony at the hearing," said Insurance Commissioner Kevin McCarty. "The rates proposed by the Allstate companies do not pass along all the savings reasonably available as a result of the expansion of the Florida Hurricane Catastrophe Fund."
Special legislation, adopted in January, made lower-priced reinsurance available to insurers.
"It was the intent of Gov. Crist and the Florida Legislature that the
lower-priced reinsurance would enable insurance companies to pass along significant savings to their policyholders," McCarty added.
Reinsurance is the insurance that companies buy to cover large losses.
Allstate now may petition the OIR for an administrative hearing through the Division of Administrative Hearings. In the meantime, homeowners' insurance rates previously submitted by the Allstate companies will remain in effect until the process is concluded:
* Allstate Floridian Insurance Co.: -14.2 percent
* Allstate Floridian Indemnity Co.: -13.2 percent
* Encompass Floridian Insurance Co.: -13.0 percent
* Encompass Floridian Insurance Co.: -12.3 percent (Dwelling Fire)
* Encompass Floridian Indemnity Company: -11.2 percent
The decision to deny the rate increases followed a public hearing on Nov. 15 in which the OIR questioned various aspects of the rate filings.
The Commissioner has the authority to hold a public hearing to question a company about its filing pursuant to Florida law. Florida law requires the OIR to hold a public hearing for rate increase filings exceeding a statewide average of 15 percent.
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(from www.sun-sentinel.com (http://www.tmcnet.com/usubmit/2007/11/17/3102936.htm))
"Allstate Floridian has dropped roughly 321,000 customers since it began shedding policies in 2005. Shores would not say whether the state's rejection of the proposed rate increase would prompt another round of customers losing their coverage."
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Speaking of insurance policies, I am still hearing reports of companies giving out notices of non-renewal.
Source: Florida Office of Insurance Regulation
"Our action is based on a thorough review of the information previously provided by the companies and their testimony at the hearing," said Insurance Commissioner Kevin McCarty. "The rates proposed by the Allstate companies do not pass along all the savings reasonably available as a result of the expansion of the Florida Hurricane Catastrophe Fund."
Special legislation, adopted in January, made lower-priced reinsurance available to insurers.
"It was the intent of Gov. Crist and the Florida Legislature that the
lower-priced reinsurance would enable insurance companies to pass along significant savings to their policyholders," McCarty added.
Reinsurance is the insurance that companies buy to cover large losses.
Allstate now may petition the OIR for an administrative hearing through the Division of Administrative Hearings. In the meantime, homeowners' insurance rates previously submitted by the Allstate companies will remain in effect until the process is concluded:
* Allstate Floridian Insurance Co.: -14.2 percent
* Allstate Floridian Indemnity Co.: -13.2 percent
* Encompass Floridian Insurance Co.: -13.0 percent
* Encompass Floridian Insurance Co.: -12.3 percent (Dwelling Fire)
* Encompass Floridian Indemnity Company: -11.2 percent
The decision to deny the rate increases followed a public hearing on Nov. 15 in which the OIR questioned various aspects of the rate filings.
The Commissioner has the authority to hold a public hearing to question a company about its filing pursuant to Florida law. Florida law requires the OIR to hold a public hearing for rate increase filings exceeding a statewide average of 15 percent.
***************
(from www.sun-sentinel.com (http://www.tmcnet.com/usubmit/2007/11/17/3102936.htm))
"Allstate Floridian has dropped roughly 321,000 customers since it began shedding policies in 2005. Shores would not say whether the state's rejection of the proposed rate increase would prompt another round of customers losing their coverage."
******************
Speaking of insurance policies, I am still hearing reports of companies giving out notices of non-renewal.