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Florida Gov. Crist Vetoes Bill Allowing Certain P/C Rate Hikes

Florida Governor Charlie Crist has vetoed a broad property insurance bill, which would have made it easier for insurers to raise rates and reduce claims...
June 3, 2010

Florida Governor Charlie Crist has vetoed a broad property insurance bill, which would have made it easier for insurers to raise rates and reduce claims costs. Insurance industry officials contended the measure was needed to strengthen property insurers hit hard in recent years by higher costs for non-catastrophic claims and to provide larger discounts to policyholders who fortified their homes against hurricane damage. Crist said he was concerned about provisions that would expand the current expedited rate filing procedure, which would have made it easier for insurers to raise rates. Florida Insurance Commissioner Kevin McCarty supported the bill because it would have helped reduce claims costs for insurers; required home insurers to have $15 million in claim reserves by mid-2020, an increase from the current $4 million; and extended a provision to have regulators approve rate hikes before they could be implemented.

Gov. Crist Vetoes Property Insurance Bill (Ft. Lauderdale Sun-Sentinel 6/2/10)