The Florida Office of Insurance Regulation has notified two homeowners insurers that it is rejecting requests for average rate increases of 78.9 and 92.4 percent.
OIR said it issued notices of Intent to Disapprove rate filings from Home Pointe Insurance Company, seeking a 92.4 percent hike, and Cincinnati Insurance Companies, asking for a 78.9 percent boost.
OIR's action is the latest concerning a blizzard of insurers' requests for steep increases in the wake of last year's big hurricane losses.
Home Pointe, the OIR said, asked for the increased rate for new and renewal business to go into effect Thursday. It impacts 21,899 policyholders.
The Cincinnati filing impacts 12,967 policyholders with a planned effective date of March 1, 2007.
When they receive their Notices of Intent to Disapprove, the companies may request an administrative hearing, arbitration or modify their current filing, OIR said.
Insurance Commissioner Kevin McCarty said the OIR has approved a Home Pointe 29.8 percent increase affecting only 5,178 of its policyholders.
Denial of rate increases to Home Pointe and Cincinnati followed a public hearing and review and analysis by OIR actuarial staff. The filings, the commissioner said, "failed to justify this level of an increase and were deficient in several areas."
"We will continue to be diligent and scrutinize each and every rate filing as it comes in the door to ensure Florida consumers are paying fair and adequate rates for their insurance coverage," he promised
Yesterday, OIR announced it will hold a hearing this Friday on a request by Universal Property and Casualty Insurance Company in Fort Lauderdale, Fla., for a 43 percent average statewide rate increase for its dwelling fire insurance--a less comprehensive homeowners policy.
The same day, OIR said it will hold another hearing on a filing by State Insurance Company of St. Augustine, Fla. for a 70.7 percent average statewide rate increase for its Everglades Program, a 59.6 percent increase for its Qualsure Preferred Program, and a 56.2 percent increase for its Qualsure Assumed Program.
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