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Florida Prevents Property Insurers From Canceling Policies

Governor Charlie Crist and the Florida Cabinet have approved a rule that will prevent property insurers from canceling Florida policies for much of the rest...
February 7, 2007

Governor Charlie Crist and the Florida Cabinet have approved a rule that will prevent property insurers from canceling Florida policies for much of the rest of this year.

The emergency rule combined with a new law will effectively freeze insurance rates and prevent cancellations through the end of the hurricane season. The action follows passage by the state legislature of a wide-ranging bill that is expected to result in lower rates. Crist proposed the rule to prevent companies from filing for new rate increases without taking into account changes in the bill, some of which won't be in effect until this summer. But another part of the rule also prevents companies from dropping customers, in effect saying that they can't respond to the new requirements that are expected to lower rates by canceling policies. While that part of the rule is only in effect until May, companies then won't be able to cancel policies because of another part of the new law that prevents them from dropping customers close to hurricane season, which starts June 1 and ends November 30.

Gov. Crist said he expected that without the rule, insurers would try to find a way to get around the new law any way they could. "We've seen over and over again where this industry will take advantage of people," the Republican governor said. Crist told his fellow Cabinet members that the Legislature had "the backbone" to stand up to the insurance industry and that now it was time for the Cabinet to do the same.

Fla Gov. Crist Persuades Cabinet to Block Insurers Exit (Insurance Journal 2/1/07)

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