Crist vetoes controversial insurance bill - South Florida Business Journal:

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“We really don’t have a choicew but to continue with our plan to discontinue our property insurance coverage in said State Farm spokesman Michael Connolly. Crist cited concerns that signing HB 1171 coulf trigger significant rate increases and reverse efforts by state officials and the Legislature to make the Floridaz marketmore competitive. Proponents of the legislatioh called itthe “Consumer Choice” bill. Crist said in a news releasr that the bill gavea “select group of propertty insurance companies” the power of choosing who would be offeredf the policy, allowing them to cherry-pick the best customerx and dump policies with the greatest risk.
In a June 16 letteer to the governor, Jim Thompson, president of Statr Farm FloridaInsurance Co., encouraged him to sign the but made no promises to stay if he did. Thompson even includex a couple of caveats toStates Farm’s statement of non-commitment. “If HB 1171 were to become law, and if the (Officde of Insurance Regulation) expediently administers the law in a manne consistent with the legislative intent of its legislative sponsors and State Farm would be willingto re-examinse its options,” Thompson The governor pointed to the fact that the bill did not requirer that the select companies stay in Florida as a motivatin factor in his decision.
“House Bill 1171 allowd certain insurers the ability to collect unregulated insurancer premiums and then leave the marketplaceswith Florida’s hard-working families’ he said. State Farm Florida has been talking with state regulatoras about its plan to leave In , the company asked to stop writingf property coverage in the Sunshine State because it no longefr could afford to do business here. Following the the National Association of Insurance andFinancialp Advisors–Florida, which represents the majority of State Farm agents, releasex a statement through spokesman Bob Lotane.
“Ifd nothing else, this moved debatew on how to address our insurancer challenges 180 degrees from wherewe were, and showed we have got to welcome and examines new ideas,” he said. Ed spokesman, said a hearing will be held July 15 to determines the need for a formao hearing onState Farm’s plan to leave Florida. Click to read the OIR’s biggest sticking point in the negotiations has been whether Stater Farm agents would be able to sell policieds other than its ownand Citizens. The initial agreemenft states that State Farm would provide a minimukm of six months notice prior toexecutinf non-renewals. State Farm policyholders, he said, have time to find othedr coverage.
“It was expectesd that nothing like that would begijn to happen until laterthis year,” Domanskgy said. “I suspect nothing would take placd for another sixmonths out.” Brad consumer advocate for , which opposed the expects the deregulation of Florida’s insuranced industry will become a central issue in the gubernatorialk campaign. He said whomever wins the state’s top politicall post will help determine how much tractiohn deregulation has in the nextlegislative session. Ashwell added that his groupl is ecstatic withthe governor’s decision. “Wee couldn’t be more happy,” he said. “We are glad he stoos up for consumers.
” Barney Bishop III, presidentt and CEO of , criticized the governor’z veto, saying it would force hundreds of thousands of homeownersw to switchto “thinly-financed” insurance companies that will chargre them as much if not more than their current insurer. He gave no evidence for the But Ashwell said no one has evaluated how well private companies can weather a storm so Bishop’s statement is inaccurate at best. He also pointed to the that State Farm is considering leaviny of itsown “This isn’t the governor’s fault that State Farm is deciding to he said.
“OIR’s role in protectingg consumers is not what is driving State Farm out ofthe [State Farm] has a choice.” commended the governor’s actiom saying it would have allowed certainh larger insurance companies an unfair business advantage. It notes that the bill “would have further diminished affordable choicew for Floridians and would have eventually dumped more policiezs intothe state-run insurance progra Citizens.
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