The state says the rates filed by Praetorian “are excessive as they exceed the indicated projected costs in the filing.”

The decision comes after a July 3 hearing on force-placed insurance rates (also known as lender-placed insurance, which is insurance placed on a mortgaged home by the lender when the owner fails to secure his or her own insurance) where Praetorian laid out its business model to justify the 2.2 percent decrease.

The decision, says John M. Nadel of brokerage firm Sterne Agee, will reach beyond Praetorian's book of business. Nadel says, “We believe this sets a very poor precedent for QBE's key competitor, Assurant, which was recently told by [Florida's] Insurance Commissioner Kevin McCarty that it must file new rates as well.”

Nadel say there are also concerns that inquiries into force-placed insurance by other state regulators could broaden after state officials held an open hearing on the subject last week during the National Association of Insurance Commissioners' Summer National Meeting in Atlanta.

Regarding Florida's order, a spokesperson for QBE says the company is not commenting in the state's order.

A spokeswoman for Florida's insurance department says in an e-mail that a rate filing by American Security Insurance Co., a subsidiary of Assurant, is expected in October. A review will then determine if a public hearing on the rate filing will be held.

This story was updated at 3:22 p.m. EDT with a statement from Florida's insurance department.