NU Online News Service, Aug. 25, 2:23 p.m.EDT

The Florida Office of Insurance Regulation (OIR) has asked thestate's commercial and residential property insurers to collect andsubmit sinkhole claims–a cost driver insurers have said isswallowing underwriting profits.

Companies are required to report data from claims filed between2006 and 2010 to the OIR by Sept. 21, according to the order.Regulators hope to gain a better understanding of the types ofclaims filed, testing procedures to determine legitimate claims,cost of inspections, location of the claims, legal and publicadjuster fees, and amount of structural losses, the OIR said.

Rising expenses from questionable sinkhole claims, includinglegal fees and costs for geological and engineering studies,have been identified by insurers and Insurance CommissionerKevin McCarty as a reason many insurers have reported underwritinglosses.

During the most recent legislative session the OIR identifiedsinkhole claims as one of a handful of non-catastrophe cost driversthat have been driving down companies' profits. The OIR said it hasheard claim frequency for sinkholes has increased and that claimsare being filed outside of what is known as "sinkholealley"–Hernando and Pasco counties.

The industry chose to give up on measures by lawmakers toaddress the sinkhole claims issue in order to give this year'somnibus property insurance bill a better chance of passing. Thebill was supported by legislators but vetoed by Gov. CharlieCrist.