OPEN LETTER TO FLORIDA’S
Florida’s property owners are still
waiting desperately for relief from high property insurance
premiums. So far, the rate cuts come up seriously short. Many
families are being priced out of their homes.
The lack of
affordable property insurance threatens public health, safety, the
financial welfare of
Florida’s citizens and even the economic health of our state. We
envision a financially viable insurance market that will honor
the best interests of both the property owners and the
Insurance was created to cover those risks that the insurance
industry wouldn’t cover. The insurance industry dumped all their
risky customers into Citizens and kept the best customers for
itself. This is not a good way to run a business on behalf of
taxpayers. You wisely opened the door to allow Citizens to compete a
little, but the insurance industry slipped in a provision that bars
meaningful competition, the “25% rule.”
should be able to offer policies at actuarially sound rates, with no
restrictions. We think the insurance industry is forcing Florida
into the insurance business. If
that is the case, then we should do it right.
the insurance industry wants the business back, then it will have to
lower its prices and offer better customer service, which
shouldn’t be that hard to do. We encourage the insurance industry
to offer its best products in a competitive marketplace.
the insurance industry seems to want only our money, but is not
willing to take our risks! Under these circumstances, it seems
prudent that we must keep our money in our state, where we will need
it in case of emergencies.
bill 1267 (companion bill S 2498) – sponsored by Representative
Julio Robaina and co-sponsored by 17 (seventeen) of your colleagues --
will comply with the intent of the Special Session. Consumers
ask you to vote favorably on this bill, when it comes up on the
House floor. (See below explanation with two proposed
insurance industry continues to post record profits, as usual. We
don’t object to profits, but it must provide a product of value to
justify those profits. You are simply challenging the insurance
industry to do its job.
coalition of consumers is opposed to HB 1223 which would create a
task force to dissolve Citizens. While we agree that restoring a
competitive, affordable and stable insurance market is in
everyone’s best interest, this task force would be too heavily
weighted toward industry interests. We believe that a robust
Citizens Insurance will help rebalance the market, provide impetus
to lower rates, and encourage insurers to compete for Florida’s business. We also feel that the Special Session took much of
the risk off insurers and that measures should be given time to work
before additional measures are implemented.
understand that we consumers are at our wits’ end, unable to
afford the ever-increasing cost of living that is driving us out of
our homes! We just can’t afford legislative debates that endanger
our financial welfare.
need you to vote YEA on House bill 1267 with the two proposed
amendments, as explained below. This will comply with the
intent of the Special Session, provide relief to homeowners, and
encourage a financially sound insurance market.
you for listening to our concerns.
Amendment # 1
Prevents insurers from circumventing the prohibition on new pup companies by creating holding companies to hold the Florida subsidiary insurer.
Gives the OIR authority to disapprove a pup company's rate filing based on the profits of the parent company (if the parent insurer returned profits of more than 15% to investors, the OIR can disapprove the pup company's rate filing).
Amendment # 2
Changes the Citizens’ Board from 8 members to 9 members.
Gives the Governor 3 Board appointments instead of 2.
Maintains all other appointing entities (CFO, Senate President, and House Speaker) at 2 appointments.
Changes the appointment of the Chair of the Board from the CFO to the Governor.
Requires all Board members to have insurance, bond financing, business management or corporate board expertise.
Repeals the requirement that Board members reside in different geographical areas of Florida.
Abolishes the Citizens technical advisory group (appointed by the CFO) which was charged with providing advice and information to the Board about the Board’s duties.
Requires the executive director of Citizens to have substantial insurance and managerial expertise.
send an e-mail to the Florida House Representatives to support H1267.
here for the complete
forget to type H 1267 in the subject line!