A Florida judge yesterday rejected a Cincinnati insurer'sefforts to stop a probe by the state Office of Insurance Regulationinto "potential collusion" over rates by property insurers.

Leon County Circuit Court Judge Charles Francis dismissedpetitions filed by the Cincinnati Insurance Co. and the CincinnatiIndemnity Co. on the ground that the court did not have appropriatejurisdiction to consider the matter.

Judge Francis, in a written ruling, said the law is clear andthere is no "means for the petitioners to initiate review of theoffice's investigatory subpoenas in Circuit Court."

He also said he did not believe the legislature intended for hiscourt to review "investigatory subpoenas issued by anadministrative agency in the course of its regulatory duties."

In petitioning the court, the companies had sought to limit thescope of the OIR investigative subpoenas and to postpone an OIRhearing set for next Thursday concerning Cincinnati's businesspractices.

The companies had argued that the OIR was exceeding itsinvestigative authority, and that the records sought would airpolicyholders' private information, discuss the company'sproprietary information and disclose nonpublic information thatinvestors could deem material.

A spokeswoman for Cincinnati Insurance Joan Shevchik, noted inan e-mailed statement while the court would not act unless OIRfiles an enforcement action, the company reached an understandingwith OIR to narrow the scope of the subpoena.

The firm she said is "reasonably comfortable with the currentstatus" and OIR assurances it will protect proprietary tradeinformation and policyholders privacy of our policyholders.

Cincinnati will have representatives at the hearing next weekand "We are confident we can demonstrate that our practices and ourrelationships with industry organizations are above-board andethical, and our Florida homeowners rates are among the lowest inthe state.

Auto-Owners Insurance Group in Lansing, Mich., also has beensubpoenaed for similar material and has petitioned the court withsimilar objections. That action is pending. The insurer has alsobeen called to appear for a hearing before the OIR that is nowscheduled for Oct. 26.

"The office is happy that the court ruled in our favor," saidOIR General Counsel Steve Parton. "The office thought all alongthat the petitions were spurious and were intended to delay theoffice's information-gathering process."

The OIR said the previously announced hearing for Cincinnati isscheduled for Thursday at 9:30 a.m. in the Senate Office Building,in Tallahassee. Cincinnati has the right to appeal Judge Francis'ruling to the the 1st District Court of Appeals.

This article updated 9:07 a.m. Oct.12.