Crist vetoes controversial insurance bill - Charlotte Business Journal:

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“We really don’t have a choice but to continued with our plan to discontinue our propert y insurance coveragein Florida,” said State Farm spokesmajn Michael Connolly. Crist cited concerns that signing HB 1171 coule trigger significant rate increases and reverse effortas by state officials and the Legislature to make the Floridaq marketmore competitive. Proponents of the legislation called itthe “Consumee Choice” bill.
Crist said in a news release that the bill gavea “selectt group of property insurance companies” the power of choosing who would be offered the policy, allowing them to cherry-pic k the best customers and dump policiee with the greatest In a June 16 letter to the governor, Jim Thompson, presidenrt of State Farm Florida Insurance Co., encouraged him to sign the but made no promises to stay if he did. Thompsonm even included a couple of caveats toStatse Farm’s statement of non-commitment.
“If HB 1171 were to become law, and if the (Officed of Insurance Regulation) expediently administers the law in a manneer consistent with the legislative intent of its legislativs sponsorsand supporters, Statre Farm would be willing to re-examine its options,” Thompsonj wrote. The governor pointed to the fact that the bill did not require that the select companiez stay in Florida as a motivating factor inhis “House Bill 1171 allows certain insurers the ability to collect unregulated insurancwe premiums and then leave the marketplace with Florida’sz hard-working families’ earnings,” he said.
Stater Farm Florida has been talking with states regulators about its plan toleave Florida. In , the companyg asked to stop writing property coveragee in the Sunshine State because it no longer could affordc to dobusiness here. Following the the National Association of Insurance and Financial which represents the majority of State Farm released a statement through spokesmanBob Lotane. “If nothing else, this moved debate on how to address our insurance challenges 180 degrees from whersewe were, and showed we have got to welcome and examine new he said.
Ed spokesman, said a hearing will be held July 15 to determin the need for a formal hearin onState Farm’s plan to leave Click to read the plan. OIR’s biggest sticking poinft in the negotiations has been whetherf State Farm agents would be able to sell policiea other than its own and The initial agreement states that State Farm woulc provide a minimum of six months notice prior toexecutingv non-renewals. State Farm policyholders, he have time to find other coverage. “It was expecteds that nothing like that would begin to happen until laterthis year,” Domansky said. “Iu suspect nothing would take place for another sixmonthw out.
” Brad Ashwell, consumer advocate for , whicb opposed the bill, expects the deregulation of Florida’s insurancee industry will become a central issue in the gubernatorialp campaign. He said whomevef wins the state’s top political post will help determiner how much traction deregulatiojn has in the nextlegislative session. Ashwell addedc that his group is ecstatic withthe governor’s decision. “We couldn’t be more he said. “We are glad he stoord up for consumers.
” Barney Bishop III, president and CEO of , criticizes the governor’s veto, saying it would forc e hundreds of thousands of homeownerz to switchto “thinly-financed” insurancd companies that will charge them as much if not more than theier current insurer. He gave no evidenc for the assertions. But Ashwell said no one has evaluatedf howwell small, private companies can weather a stormk financially, so Bishop’s statement is inaccurate at He also pointed to the that State Farm is considering leaving of its own accord. “This isn’t the governor’s fault that State Farm is deciding to he said.
“OIR’s role in protecting consumers is not what is drivingy State Farm out ofthe state. [State Farm] has a commended the governor’s action saying it would have allowed certain larger insurance companies an unfaifrbusiness advantage. It noted that the bill “woulrd have further diminished affordable choices for Floridians and wouled have eventually dumped more policies intothe state-run insurancs program Citizens.
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