NU Online News Service, July 29, 2:54 p.m.EDT

Florida Sen. Mike Fasano, R-New Port Richey, is calling for arepeal of this year's massive property-insurance bill, SB 408,following the state insurer of last resort's decision to file foran average 400+ percent rate increase for sinkhole coverage.

"We need to repeal it completely and go back to the 10 percentcap [on rate increases]," says Fasano during a radio interview onWMNF 88.5 in Tampa.

Fasano was one of the leading opponents of SB 408, which contains numerousproperty-insurance reforms, including a provision that allowsCitizens Property Insurance Corp. to increase sinkhole-insurancerates beyond a 10 percent cap that applies to other types ofinsurance it offers.

Fasano tells the radio station that even though he was againstthe bill, he never imagined this type of rate increase.

"Never in a million years…never did I think this would happen,"he says.

Citizens' board has approved filing the rate request with theFlorida Office of Insurance Regulation (OIR). In some parts ofFlorida, rates for sinkhole coverage—which is required by somelenders—could go up more than 2,000 percent.

OIR says it has not received the filing. It has 45 days toapprove or deny the rate-hike request.

Plans for a public hearing on the rates are unknown, but Fasanowants Insurance Commissioner Kevin McCarty to hold statewidehearings for consumers so they do not have to travel all the way toTallahassee.

"In light of these almost incomprehensible rate increases, Irespectfully expect that all Floridians be given the chance to havetheir voices heard on this issue before the [OIR] rules on theapplication," writes Fasano to McCarty.

Fasano says it is "almost beyond comprehension that Citizenswould even propose such outrageously high premium increases."

He adds, "The economic impact on homeowners will bedevastating."

During his radio interview, Fasano says the increases are on topof wind, flood, fire and theft insurance many homeowners need inorder to get a mortgage.

The OIR says it has received Fasano's letter and will take thesenator's comments "under advisement."

Fasano says he has not heard from the OIR.

Citizens says its proposed rate increases are based on losshistory. The last-resort insurer says it lost more than $200million on sinkhole coverage in 2010, which was about twice as muchas the previous year.

Consumers have the opportunity to email comments about theCitizens rate hikes on the OIRwebsite.