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Florida Ins. Commissioner: NFIP Rates Appear Excessive

Florida Insurance Commissioner Kevin McCarty said National Flood Insurance Program rates in the state appear to be unfairly discriminatory, based on how the Federal Emergency Management Agency calculates rates...
August 19, 2015

Florida Insurance Commissioner Kevin McCarty said National Flood Insurance Program (NFIP) rates in the state appear to be unfairly discriminatory, based on how the Federal Emergency Management Agency calculates rates. State Sen. Jeff Brandes (R), who asked McCarty to examine whether NFIP rates were excessive, said any declaration that the rates are excessive would help pressure federal regulators and Congress for NFIP changes.

In an Aug. 14 letter to Brandes, McCarty noted NFIP experience suggested that the flood loss ratio between 1978-2012 was 28.3%. "This was not an alarming ratio and does not seem to suggest that dramatic increases are needed for Florida risks," McCarty's letter said.

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