Florida Gov. Charles Crist has signed legislation that puts the onus on insurance companies to justify rate increases and at the same time freezes rates for the state's property insurer of last resort, which critics charge is woefully undercapitalized.
The governor also vetoed a provision of the law that would have provided $250 million to continue a program that provides incentives for small insurers willing to come to the state and write some of the business now placed with state-backed Citizens Property Insurance Corporation.
The legislation, passed last week, tightens oversight over insurance companies and bars them from increasing rates on homeowners' policies without prior state approval.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
