Florida Chief Financial Officer Tom Gallagher has assailed an agreement reached Wednesday between Allstate Floridian Insurance Co. and Insurance Commissioner Kevin McCarty that allows Allstate to implement a 9.9 percent rate hike for homeowners.

Last week Allstate Floridian Insurance Co. originally announced a 28 percent average rate hike for homeowners to be implemented by mid-August through the usage of a state statute known as "use-and-file," which allows insurers to impose new rates and file for approval within 30 days. The 9.9 percent would be the first stage of that increase.

In a statement, Mr. Gallagher, a Republican candidate for governor in 2006, said, "The agreement reached by Allstate Floridian Insurance Company and Insurance Commissioner Kevin McCarty doesn't offer any real relief to policyholders."

Ryan Priest, an Allstate spokesperson, said Allstate will now introduce a 9.9 percent rate hike to policyholders and seek the additional estimated 18.1 percent using the new procedures in homeowners' insurance legislation signed into law by Gov. Jeb Bush June 1.

Any rate hike exceeding 15 percent is subject to a public hearing under the new law.

Mr. Gallagher said he considers the agreement for an initial 9.9 hike to be a "smokescreen" on Allstate's part to "to delay an outrageous rate hike without scrutiny by regulators."

Mr. Gallagher said it was "ridiculous" that there would be only one public hearing on the matter considering the decision affects more than 640,000 policyholders. He added that "more public hearings must be held so policyholders have the opportunity to ask the company questions and to voice their concerns."

Bob Lotane, a spokesperson for the Department of Financial Services, said that the comments were in reference to the original announcement declaring only one public hearing. Further discussion on the matter, Mr. Lotane said, shows signs that Commissioner McCarty and his office are "leaning toward" having multiple hearings.

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