Florida governor orders freeze on insurance rate hikes

Florida governor orders freeze on insurance rate hikes

Florida governor orders freeze on insurance rate hikes Florida Governor Rick Scott has issued a notice to the state’s insurance regulator, ordering the agency to “freeze any and all efforts” to increase property insurance rates.

The governor’s decision follows Hurricane Irma’s passing, which left many homes and businesses in the state in ruin. As of Tuesday, over 40% of Florida was without power, and it could take weeks to restore electricity in many affected areas.

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Gov. Scott’s release – which included directives from the governor to Insurance Commissioner David Altmaier – did not list which rate proposals would be affected by the 90-day freeze, reported ABC.

Last month, the Office of Insurance Regulation held a hearing on a proposal by Citizens Property Insurance that suggested an increase in consumer rates.

“Due to the devastating effects of Hurricane Irma, Floridians should be focused on getting back to their normal lives without their insurance premiums being increased,” the governor said in a statement.

Scott also asked that policyholders who had their coverage canceled or not renewed in the days leading up to the hurricane event be given a 90-day grace period.

The governor requested the state insurance commissioner provide an additional 90 days for policyholders to file the necessary claims information to insurance companies. Scott cited the large numbers of residents who were displaced by the storm, who could use the more lenient filing period.

Related stories:
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Florida insurers speak out as Irma looms
  • Bristol Haughton 9/14/2017 9:22:09 AM
    The Government does not belong in the Insurance Business, just like The Insurance Business does not belong in Government. Those were two huge losses. Which surely will effect the Insurance Industry. Just imagine if the Insurance Industry said, OK, no more policies in Texas or Florida. They are having abnormal losses which we are not prepared for. Would the Governor then expose his State to such losses. No I don't think so.
    The Insurance Industry has survived because it knows what it is doing. The internal competition controls the cost which also reflects losses both past and future. Good Luck Florida. I hope you make it.
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