Consumer advocate J. Robert Hunter has been tapped by the Florida Office of Insurance Regulation to set property insurance rate reductions as mandated by recently passed legislation.
Insurance Commissioner Kevin McCarty described the body of Mr. Hunter's work as "legendary. He is truly one of the great minds on issues surrounding the insurance industry, and I am grateful we were able to attract him to Florida to take on this very important project."
Formerly Texas' insurance commissioner, Mr. Hunter arrived in Tallahassee Wednesday to begin work to determine rate reductions that are required to be adopted by all Florida residential property insurers. He currently serves as insurance director of the Consumer Federation of America.
Mr. Hunter said in a statement that he wanted to make sure consumers get the full benefit from the reforms, "while also ensuring insurers retain rates that accurately reflect the risk they are bearing."
Sam Miller, executive director of the Florida Insurance Council, said the industry had no input into the selection and that the Office of Insurance Regulation was authorized to make the selection.
The office is required to calculate what is called a presumed factor by March 15th. A bill passed by the Florida Legislature during January's Special Session provided enhancements to the Florida Hurricane Catastrophe Fund to offset some of the increases in global reinsurance costs following the 2004-2005 hurricane seasons. Those increases are responsible, in large part, for the significant increases in insurance costs born by Floridians. The presumed factor will represent the savings that will be generated by these statutory changes.
Once the office publishes the presumed factor, each residential property insurer is required to file a rate change reflecting the presumed factor for insurance policies written or renewed on or after June 1, 2007. Insurers cannot nonrenew or cancel residential property insurance policies until they make these required filings.
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