Florida's new governor, Charlie Crist, who is no friend of the insurance industry despite being a Republican, has signed into law a hodge-podge bill designed to save a devastated property insurance market, but which will no doubt end up doing far more harm than good in the long run.
As reported by our own Matt Brady, the bill, approved by the legislature this week at the end of a short special session, aims to lower rates by allowing carriers to buy reinsurance directly from the state's cat fund at below-market rates–provided they pass the savings on to policyholders.
Indeed, carriers must return excess profits to consumers–with "excess" determined by the Office of Insurance Regulation. Good luck to carriers with that!
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