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.
"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.)
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