NU Online News Service, Aug. 10, 3:35 p.m. EDT
Florida Insurance Commissioner Kevin McCarty says his office plans to disapprove Praetorian Insurance Co.'s request for a statewide 2.2 percent decrease for its lender-placed insurance program.
Praetorian is part of the QBE group of insurance companies.
The state Office of Insurance Regulation (OIR) says its assessment of the May 4 rate filing concluded Praetorian should have filed for a reduction of 35-36 percent. The OIR says Praetorian filed excessive rates and did not support loss trends.
"The Praetorian filing was meticulously reviewed and all testimony given by company representatives at the July 3rd public hearing was carefully considered," says Deputy Commissioner of Property and Casualty, Richard Koon, in a statement. "Praetorian did not provide appropriate support for the rate decrease it requested."
Lender-placed insurance—also known as force-placed insurance—is put on a home by a lender when the homeowners' insurance lapses.
Praetorian has 21 days to petition for an administrative hearing, or the company can submit a new filing.
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