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Florida deregulates rates of 15 insurance companies, keeps regulations for others.

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madfloridian Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-02-09 12:35 PM
Original message
Florida deregulates rates of 15 insurance companies, keeps regulations for others.
Edited on Sat May-02-09 01:25 PM by madfloridian
Why just let a few be deregulated?

There is a bill that does this that is on its way to Charlie's desk for his signature.

They nicknamed it the State Farm bill because of that company's threat to leave Florida.

So it seems to me to be a strange bill, regulating only the rates of some companies. I am all for holding negotiations to get State Farm to stay instead of just curtly dismissing them as Crist did....but why just let about 15 use "what market will bear rates" and not the others.

I am not savvy about economics, and that makes little sense to me.

Rate caps come off. Bill Lets Insurance Rates Increase

TALLAHASSEE | A bill letting some large insurance companies set their own rates for property insurance policies is on its way to Gov. Charlie Crist to be signed into law. The Senate on Friday approved House Bill 1171, which is sometimes referred to as "The State Farm Bill" because it would help the large insurer that has said it plans to stop insuring property in Florida.

As many as 15 insurance companies could actually use "what-the-market-will-bear" rates, rather than having to go through a state agency to get approval for their rates. Some 30 smaller insurance companies will still be under rate regulation by the state and the state-run Citizens Property and Casualty Company, the insurer of last resort, will also have rate increase control

They quote Dennis Ross who was removed from his chairmanship for advocating this several years ago.

Just two years ago, former Rep. Dennis Ross, R-Lakeland, was sacked from his chairmanship of the House Insurance Committee for advocating similar market-value rates instead of the state capping rates.

Reached at his Lakeland home Friday evening, Ross was asked if he felt vindicated.

"Well, vindicated in the sense that my former colleagues have recognized that we have to let the free enterprise system work in order to reduce the financial exposure of Florida residents from a catastrophic event in the state," Ross said.

"This is clearly a move in the right direction for the state, and as companies begin to compete for policyholders, the premiums will begin to go back down.''

Again my question is why would just a few companies have their rates deregulated and not others. It may be a good thing, I just don't know.

Our legislature's record has not been that super this year, so I am suspicious.
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kickysnana Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-02-09 12:55 PM
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1. Because the others didn't pay enough bribe money. n/t
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