NU Online News Service, May 28, 11:36 a.m.EDT

Florida Gov. Charlie Crist yesterday indicated he may veto the"Consumer Choice" bill that would eliminate rate restrictions onsome home insurance.

The governor said an unregulated insurance industry would beunfair to consumers.

His comments came as controversy mounted over the measure andthe bill's sponsor called the state insurance commissioner"duplicitous" in voicing opposition to the legislation.

Provisions of the bill, HB1171, would allow some insurers tocharge rates above those approved by the Office of InsuranceRegulation provided they have a surplus of at least $200 millionand a ratio of net written premium to its surplus of no more thantwo to one.

During a press conference yesterday, Gov. Crist said he believesregulation is important for both the state and Florida consumers."To have that industry unregulated in essence is not something thatis appealing to me nor is it fair to the customer," he said.

Consumer groups also protested HB1171 during a press conferenceheld yesterday.

Walter Dartland, executive director, Consumer Federation of theSoutheast, said he estimated around 30 insurance companies will beable to change rates at will, creating an unlevel playing field forthe state's smaller domestic companies. He called the measure abailout for the larger insurers such as State Farm.

"This should be a no-brainer veto," he said.

He added that if State Farm is unsatisfied with its disapprovedrate filing, it should re-file and prove its case.

Brad Ashwell, legislative advocate, Florida Public InterestResearch Group, said the bill would lead to unpredictable insurancerates, and allow big companies to cherry pick risks. He said peoplecould be lured to the companies by lower rates, and then see theirprices subsequently raised.

Earlier this month, Gov. Crist received a letter from InsuranceCommissioner Kevin McCarty asking him to veto HB1171.

The commissioner's letter sparked a strong reaction from billsponsor State Senator Michael S. Bennett, R-Bradenton, who wrote toCommissioner McCarty that the bill was crafted with input andguidance from the Office of Insurance Regulation (OIR). He alsosaid the OIR was outspoken in its neutrality on the bill.

Sen. Bennett said in the letter he was then "ambushed by a pressrelease from [OIR] opposing the bill." After expressing hisdispleasure, Sen. Bennett said Commissioner McCarty agreed towithdraw the press release, and told Sen. Bennett in a subsequentmeeting that he would not oppose the bill and would not ask thegovernor to veto it.

"To my dismay," Sen. Bennett wrote, "I received an email copy ofa letter from you to Governor Crist, essentially asking thegovernor to veto House Bill 1171."

Sen. Bennett also wrote a letter to Gov. Crist requesting theresignation of Commissioner McCarty, calling him "duplicitous anduntrustworthy."

Ed Domansky, spokesman for the OIR, said Commissioner McCartyhas been in public service for over 20 years, and stands behind hisrecord of service to the people of Florida.

While he did not speak specifically to any of Sen. Bennett'sallegations, Mr. Domansky said McCarty's letter to Gov. Cristcontained comments that were consistent with testimony by OIRofficials to the legislature.

Gov. Crist expressed his confidence in Commissioner McCartyfollowing Sen. Bennett's letter, said a spokesman for thegovernor.