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Possible End to Rate Regulation

Jolted by the news that State Farm was pulling out of the Florida property insurance market, some state lawmakers are reversing themselves dramatically on how to fix the state's fragile property

By Gary Fineout | Updated on April 30, 2009

Jolted by the news that State Farm was pulling out of the Florida property insurance market, some state lawmakers are reversing themselves dramatically on how to fix the state’s fragile property insurance market. Instead of clamping down with more regulation, some Republican legislators have proposed giving ratepayers a choice: Pay now or pay later. And if a customer wants to pay now, the price won’t be controlled by the state. It will be up to the property insurance carrier to decide what to charge.

“I think it is essential that we initiate a major effort to restore the private market in Florida,” said Rep. Bill Proctor (R-St. Augustine), and a sponsor of the legislation. “Homeowners should have a choice among the well-established, national companies. Moreover, the homeowners who are willing to pay an actuarially sound premium before the event should not be subjected to post -assessments.”

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