Florida Farm Bureau joined Hartford Insurance as the first two recipients of rulings in which the Insurance Companies challenged the rejection of Premium Rate Increases they requested. The decisions in these two proceedings mark the first time that a new review process has been employed for Premium Rate Increase requests in Florida.
FFB and Hartford are the first two Insurance Companies to challenge Premium Rate Increase rejections since the Insurance Companies requested them in 2007. In that year, the Florida Legislature revamped the previous Rate Increase process. Previously, all kinds of Property Insurance Premiums in Florida were subject to Rate Increases because the Insurance Companies charging them, wanted them. The State Office of Insurance Regulation could later decide against such Rate Increases, but the Insurance Companies could appeal the O.I.R. decision "through a fairly quick mediation process."
The 2007 changes made by the Florida Legislature to this process were fairly simple. In 2007, the onus was put on the Insurance Companies to submit themselves and their Premium Rate Increase applications to an "appeal" process passing before Florida Administrative Law Judges in the event of an adverse decision by the Florida O.I.R. The Insurance Companies can still appeal after that to Florida's First District Court of Appeal in Tallahassee, in the event of an adverse decision by the Florida Administrative Law Judge.
Florida Farm Bureau actually asked for a Rate decrease of 1.6% on 140,000 Homeowner's Insurance Policies, it is reported. Hartford asked for a Premium increase ranging from 0.4% to 2.8% on some 92,000 Homeowner's Insurance Policies and an additional Premium Increase of 28% to 54% on some 2,550 "dwelling and fire policies".
Both lost. There is no word available on whether either or both of these two Insurance Companies will file a further appeal to the First District Court of Appeal. Jennifer Liberto & Helen Huntley, "Insurers Ruffled, Regulators Pleased by Judges' Rulings" (St. Petersburg Times Online, Thursday, April 3, 2008).
Please Read The Disclaimer.
Comments