OIR's request for a hold on rates followed a Feb. 3 request to that agency for a freeze from Florida Chief Financial Officer Tom Gallagher. Homeowners who suffered losses from the four back-to-back hurricanes which hit the state last year "should not be victimized a second time," announced Mr. Gallagher.

"The market needs to stabilize and state lawmakers should have the opportunity to act on recommendations for insurance reform that will help offset the need for rate increases," he said.

Mr. Gallagher said he was making his request after hearing that the Office of Insurance Regulation had received a request from Columbus, Ohio-based Nationwide for an average homeowners rate increase of 28.3 percent.

The OIR memo, dated Feb. 8, asks insurers who have submitted either file and use rate filings, or use and file filings, to delay implementation of any rates until 30 days after the legislative session ends. The directive also asks insurers to refrain from submitting any new rate filings until the legislative session ends.

According to the Florida Insurance Council, 31 companies have submitted rate filings since October 2004. Of that number, 13 filings were approved while 14 are still pending and four were either denied or withdrawn. Rate filing requests have averaged between 5 and 10 percent.

The memorandum notes that the OIR, with lawmakers and interested parties, is currently exploring possible ways to expand the capacity of the insurance market in order to improve both the availability and affordability of insurance for residents.

In a related event today, Florida Insurance Commissioner Kevin McCarty announced that 91 insurance companies were assessed fines totaling more than $1.1 million for filing late affidavits stemming from Tropical Storm Bonnie and Hurricanes Charley, Frances, Ivan and Jeanne.

The emergency rule they were found in violation of required all property and casualty insurers with direct personal lines residential property claims in Florida resulting from the five 2004 storms to expeditiously settle claims and furnish an affidavit attesting to their compliance with the emergency rule.