Tom Gallagher, Florida's chief financial officer, said today that Citizens Property Insurance Corporation should not be allowed to arbitrarily raise rates without justifying them.

“Citizens should be transparent and accountable for its financial and ethical performance, and that includes the rates that it charges,” Gallagher said. “Nearly 800,000 Floridians are counting on Citizens for property protection and deserve options. That is why I am calling for federal and state solutions that will strengthen our property insurance market and expand coverage options for Florida homeowners.”

According to Gallagher, the first flaw in Citizens' rate filing is what is termed an administrative factor. Citizens is asking for higher rates using the industry's expense experience, which is significantly higher than the expenses that Citizens actually incurs.