Tom Gallagher, Florida's chief financial officer, said todaythat Citizens Property Insurance Corporation should not be allowedto arbitrarily raise rates without justifying them.

“Citizens should be transparent and accountable for itsfinancial and ethical performance, and that includes the rates thatit charges,” Gallagher said. “Nearly 800,000 Floridians arecounting on Citizens for property protection and deserve options.That is why I am calling for federal and state solutions that willstrengthen our property insurance market and expand coverageoptions for Florida homeowners.”

According to Gallagher, the first flaw in Citizens' rate filingis what is termed an administrative factor. Citizens is asking forhigher rates using the industry's expense experience, which issignificantly higher than the expenses that Citizens actuallyincurs.

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