Insurance companies making more money than ever..

[Aquawind]

A great example why they have lobbiests on the payroll. Insurance companies want to raise rates and loosen responsibility. Nothing is stopping them from doing this every year..They will save some money and use it to strengthen thier postion for next next years "adjustments"..


Storm deal shields insurers

Companies would save millions in future hurricane claims

By PAIGE ST. JOHN
NEWS-PRESS TALLAHASSEE BUREAU
Published by news-press.com on May 6, 2005


TALLAHASSEE — Insurance companies get a partial shield from hurricane-related flood claims in a legislative compromise offered late Thursday to save other consumer-friendly steps.

The Senate's heavily amended bill still must be voted out of that chamber and accepted by the House before the Legislature finishes business today. No handshake agreement guarantees passage.

Senate Insurance Chairman Rudy Garcia, R-Hialeah, said he was hesitant to make dramatic change sought by insurance and trial attorney factions.

"How do you strike a balance without really knowing how you affect someone?" Garcia said. "This has to be a pro-consumer bill if I'm going to work on it."

The proposal protects windstorm insurers from paying policy limits on homes destroyed by both wind and flood. The change would not affect 2004 storm victims nor claims in litigation.

It would apply to policies that are in force and would save insurance firms millions of dollars in potential claims from future hurricanes.

However, it allows hurricane victims who can prove their homes would have been destroyed by the wind alone to continue to seek those policy limits — a reversion to the way many lawyers litigated hurricane claims before this season.

Garcia was forced to give up his quest to have rates for Florida's insurer of last resort, Citizens Property Insurance, based on actual risk rather than at the top of the market. He also relinquished a 5 percent cap on Citizens' rate increases, a measure that would have protected many South Florida residents insured by the state-run company.

The Senate bill:

• Keeps a 30-day deadline for property insurers to pay uncontested claims.

• Ends the industry practice of holding back partial payment until repairs are complete.

• Forbids insurers from canceling policies until at least 90 days after repairs are finished.

• Requires state regulators to come back next year with proposals for standard policies and rating territories, two important elements to allow consumers to comparison shop.

Insurers gave a mixed response to the late-filed amendments.

"It's got a lot of work to be done," said Gerald Wester, lobbyist for the American Insurance Association.

"We can live with this language (on wind/flood claims), but there are other things in this bill I'll have to sit down and study," said Mark Delegal from State Farm, the state's largest property insurer.

Their adversaries on the bill were less happy.

"It's just going to put homeowners in a terrible predicament," said Alexander Clem, president of the Academy of Florida Trial Lawyers.


Paul