Ohio-based insurer Cincinnati Financial Corp. said it has asked a court to modify subpoenas received from Florida's insurance department related to its reinsurance program and contacts with insurance trade associations.
The carrier filed a petition today in the Leon County Circuit Court of the Second Judicial Circuit in Florida to modify the subpoenas and grant a protective order arguing that the amount of material sought is unduly broad and burdensome.
Cincinnati Financial Corp. first disclosed the subpoenas in a filing with the Securities and Exchange Commission today, the Fairfield, Ohio-based insurer said it received subpoenas from the Florida Office of Insurance Regulation on Aug. 24.
The company said the department requested documents from its subsidiaries, The Cincinnati Insurance Company and The Cincinnati Indemnity Company, concerning its "reinsurance program and communications with insurance trade organizations, rating agencies and risk modeling companies."
James E. Benoski, president and chief executive officer of the two insurance subsidiaries, commented, "We share the OIR's goal to make homeowners insurance available and affordable to the citizens of Florida, and we respect their right -- their duty -- to investigate activity contrary to their regulations supporting that goal.
"However, we have received no communication from them indicating any issues with our conduct, transactions or relationships with reinsurance companies, trade associations, ratings agencies or modeling firms. We don't believe they have any cause to request our documents and investigate our relationships with these organizations as they have done."
A department spokesman could neither deny nor confirm the subpoena or that an investigation is ongoing.
The department held a hearing on Tuesday on the company's proposed increase of 37.5 percent on homeowners policies. The company received a rate reduction of 35 percent on new and renewal business effective June 1. It has also filed a 14.5 percent average rate increase statewide on dwelling firm policies which would become effective Jan. 1, 2008.
Florida insurers have been asked to submit what are called "true-up" rates to account for reinsurance provided to carriers at discount prices by the Florida Hurricane Catastrophe Fund.
A replay of the hearing will be available at www.floir.com.
This article updated 4:27 p.m.
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