The Florida Insurance Council (FIC) has taken legal action against a series of state insurance reforms aimed at holding down property rates.
The FIC filed motions both with the State Division of Administrative Hearings and the First District Court of Appeals aimed at getting relief from new state laws retroactively prohibiting nonrenewal of policies and new rate increases.
FIC President Guy Marvin said the group's aim was to stop implementation of the rule, pending a state administrative review of its validity.
"We firmly believe that this rule is invalid," he said, while in another affidavit filed in connection he said the rule "disrupts insurer operations and creates unnecessary havoc and confusion for insurers and policyholders."
The Florida Office of Insurance Regulation will respond by the Monday noon deadline, a spokesman said.
Mr. Marvin also said insurance carriers have been seeking to reduce their hurricane exposure for more than a year in efforts "often undertaken with the Florida Office of Insurance Regulation's knowledge and approval."
He went on to say that most lines of insurance for which insurers have nonrenewals planned are priced inadequately. "If an insurer is required to stay on a book of business longer than expected, it is likely to have higher underwriting losses for the company, negative cash flow and decline in capital."
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