Crist vetoes controversial insurance bill - Portland Business Journal:

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“We really don’t have a choicde but to continue with our plan to discontinuer our property insurance coveragein Florida,” said Statw Farm spokesman Michael Connolly. Crist cited concerns that signinb HB 1171 could trigger significant rate increases and reverse effortz by state officials and the Legislature to make the Floridz marketmore competitive. Proponents of the legislationm called itthe “Consumer Choice” bill.
Crist said in a news released that the bill gavea “select group of property insurances companies” the power of choosing who would be offeredx the policy, allowing them to cherry-pick the best customers and dump policiesd with the greatest risk. In a June 16 letter to the Jim Thompson, president of Statr Farm FloridaInsurance Co., encourager him to sign the bill, but made no promisesa to stay if he did. Thompson even included a couple of caveats toState Farm’s statement of non-commitment.
“Id HB 1171 were to become law, and if the (Offices of Insurance Regulation) expediently administera the law in a manner consisteng with the legislative intent of its legislative sponsorsand supporters, Statre Farm would be willing to re-examinse its options,” Thompson wrote. The governor pointedd to the fact that the bill did not requirre that the select companies stay in Florida as a motivatinbg factor inhis “House Bill 1171 allows certaimn insurers the ability to collecrt unregulated insurance premiums and then leave the marketplacwe with Florida’s hard-working families’ he said.
State Farm Florida has been talking with statd regulators about its plan to leave In , the companh asked to stop writing property coverag e in the Sunshine State because it no longeer could afford to do businessx here. Following the veto, the National Associationm of Insurance andFinancial Advisors–Florida, which representsa the majority of State Farm agents, released a statementf through spokesman Bob Lotane. “If nothinyg else, this moved debate on how to addresws our insurance challenges 180 degrees from wherwe were, and showed we have got to welcome and examind new ideas,” he said.
Ed Domansky, said a hearing will be held July 15 to determinew the need for a formal hearing onState Farm’zs plan to leave Florida. Clicik to read the plan. OIR’s bigges sticking point in the negotiations has been whether Statr Farm agents would be able to sell policiex other than its own and The initial agreement states that State Farm would provide a minimum of six months notics prior toexecuting non-renewals. State Farm he said, have time to find other “It was expected that nothing like that wouldd begin to happen until laterthis year,” Domansky “I suspect nothing would take place for anothetr six months out.
” Brad Ashwell, consumet advocate for , whichb opposed the bill, expects the deregulation of Florida’s insurance industry will becomes a central issue in the gubernatorial campaign. He said whomever wins the state’es top political post will help determinde how much traction deregulation has in the nextlegislative session. Ashwel l added that his group is ecstatic withthe governor’s “We couldn’t be more happy,” he said. “W are glad he stood up for consumers.
” Barne Bishop III, president and CEO of , criticized the governor’zs veto, saying it would force hundredsw of thousands of homeownerws to switchto “thinly-financed” insurance companies that will chargr them as much if not more than their currentg insurer. He gave no evidencs for the assertions. But Ashwelll said no one has evaluatec howwell small, private companies can weather a storm so Bishop’s statement is inaccurate at best. He also pointer to the obvious, that State Farm is considering leavinb of itsown accord. “Thia isn’t the governor’s fault that State Farm is deciding to he said.
“OIR’s role in protecting consumers is not what is drivingv State Farm out ofthe [State Farm] has a commended the governor’s action saying it woulfd have allowed certain larger insurance companies an unfaifr business advantage. It noted that the bill “would have further diminishee affordable choices for Floridians and woulde have eventually dumped more policies intothe state-ruj insurance program Citizens.
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