Insurance companies to be sued?

By
Real Estate Agent with Orlando Area Real Estate Services

Back in January, the State of Florida passed a law that basically said if insurance companies bought their re-insurance from the State, then they had to pass on savings (around 24%) to policy holders.

Essentially this has not happened and now Governor Charlie Crist has asked three trial lawyers to look at the whole thing and to see if the State has a case to sue the companies. He has been mad for months over the lack of progress on reducing Florida's insurance rates. Florida

"I'm frustrated with the fact that rates haven't come down more, and I'm concerned about the legality of them not bringing the rates down," Crist said recently in an interview with the Orlando Sentinel.

"The law says the savings enjoyed by the insurance company must be passed on to the consumers. Well, they're not all doing it."

One of the options, Crist's office said, is a class-action lawsuit. "The real question here is, why aren't you adhering to the letter of the law?" Crist said.

All the above in italics taken from a Florida Association of Realtors press release today. Meanwhile and against this backdrop, AllState Insurance has asked the State for a 41% average rate INCREASE. The State rejected it and now the company is appealing.

________________________________________________________________________________________________________

(Copyright © 2007 By Simon L Conway All Rights Reserved.)

Please give me a call if you have questions about the Central Florida real estate market.  You can reach me on 407 876 8200.  Also visit my web site at http://www.simonconway.net/ or http://www.move2orlando.net/

Also remember to check out my weekly radio show - The Home Team - which airs every Sunday at Noon Eastern and if you are not in Central Florida then you can tune in on line at http://www.540wfla.com/

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Rainmaker
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Marlene Bridges
Laguna Homes|Laguna Condos|Laguna Real Estate
Village Real Estate Services, Inc.
Interesting info.  Thanks for sharing.  Wonder how this works in other states?
December 20, 2007 11:40 PM
Rainmaker
404,265
Simon Conway
Orlando Area Real Estate Services
I am not sure about other States, but certainly I have been very pleased with the way the State of Florida has been dealing with this issue. Thanks for stopping by and for taking the time to comment.
December 21, 2007 04:24 PM
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Rainmaker
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Simon Conway

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