http://www.news-press.com/apps/pbcs.dll ... 7703140401
Bill gives insurance advocate new clout
Lets official enter rate disputes, subpoena records on both sides
By Paige St. John
news-press.com capital bureau
Originally posted on March 14, 2007
TALLAHASSEE — Consumers would have an insurance advocate with teeth if a proposal now before the Legislature is passed.
CFO Alex Sink's office has drafted legislation working its way through the Senate that will beef up the muscle of newly appointed Insurance Consumer Advocate Bob Milligan.
The bill surfaced just Monday evening, and was taken up and approved Tuesday morning by the Senate Banking and Insurance Committee, chaired by Sen. Bill Posey, the document's sponsor.
"It gives me and my staff enough clout to really deal with issues early on," said Milligan. "We're not talking Monday-morning quarterbacking stuff. We're talking about getting out front in early rate discussions, and having a seat at the table where you really have enough clout."
As promised by Sink, the legislation would allow the consumer advocate to intervene directly in insurance rate cases, and to subpoena both records and witnesses. It also allows the advocate to investigate insurance industry trade practices, and to report on state insurance policy from the consumer viewpoint.
Posey said he remained a believer that the consumer advocate is best housed at the independent Office of Public Counsel, which now represents consumers in utility rate cases. However, he said, "I would like to give our CFO the chance to strengthen this office."
A State Farm lobbyist raised general objections Tuesday, but was not specific about what areas the company wants Sink to change or reconsider.
"We just want to make sure it doesn't have consequences not thought through," said lobbyist Steve Roddenberry, himself a former state deputy director of insurance regulation.
Even without the legislation, Milligan has succeeded in intervening this week in arbitration hearings over Nationwide Insurance Company of Florida's request for a 71 percent rate hike. Milligan's actuaries are arguing that Nationwide deserves only a 19 percent increase.
The consumer advocate attributed his participation in this week's hearings to a "good relationship" with Insurance Commissioner Kevin McCarty.