The Insurance Crisis Is Still With Us
"Where am I supposed to come up with $5,000 again? We need to do something.'' So says Zenobia Lopez of Biscayne Gardens, who is one of many Florida residents who won;t be able to afford next year's insurance premiums, and has signed a petition to the Legislature that meets in Special Sessioon on January 16, 2007 to consider what to do.
The mood of the residents is not a happy one. Many blame the legislature for the crisis. 'It's our legislators that are doing this to us,'' said Julio Pinto of Kendall, according to the Miami Hearld. Pino, who pays $9,000 a year is one of 35,000 homeowners who have signed a petition to the Legislature, and the number is growing.
Residents insured by Citizens are concerned because a new state law requires Citizens to boost its reserves rapidly so it has enough money on hand to cover claims from a massive storm. The result is that there will be big increases over the next three years. The first one is a 55.8 percent increase planned for March, 2007.
A group in Collier County fighting the rate increases has hired the same actuary that worked with FIRM in Monroe County who successfully challenged a Citizens rate increase for the Keys.
In Brevard County a group of homeowners is drafting its own list of remedies that includes eliminating the provision in the new state insurance law that requires the huge premium increases in Citizens' rates; preventing insurers from canceling long-term policyholders; allowing rate increases on a more gradual basis; and pushing for the creation of a regional or national catastrophe fund.
That group is also pushing for more regulatory control of insurance companies. Right now, consumers can oppose electric and phone company rate increases through Florida's Public Counsel office, but homeowners can't do that with insurance companies.
Feeling the heat, Governor-elect, Charlie Crist, and some key legislators have said that the Citizens rate increase planned for March may be too big a bite and that the insurance bill that required the rate increases needs to be re-worked.
No one is happy, but one thing is certain. The legislature and the new governor better get it right before March rolls around.
The mood of the residents is not a happy one. Many blame the legislature for the crisis. 'It's our legislators that are doing this to us,'' said Julio Pinto of Kendall, according to the Miami Hearld. Pino, who pays $9,000 a year is one of 35,000 homeowners who have signed a petition to the Legislature, and the number is growing.
Residents insured by Citizens are concerned because a new state law requires Citizens to boost its reserves rapidly so it has enough money on hand to cover claims from a massive storm. The result is that there will be big increases over the next three years. The first one is a 55.8 percent increase planned for March, 2007.
A group in Collier County fighting the rate increases has hired the same actuary that worked with FIRM in Monroe County who successfully challenged a Citizens rate increase for the Keys.
In Brevard County a group of homeowners is drafting its own list of remedies that includes eliminating the provision in the new state insurance law that requires the huge premium increases in Citizens' rates; preventing insurers from canceling long-term policyholders; allowing rate increases on a more gradual basis; and pushing for the creation of a regional or national catastrophe fund.
That group is also pushing for more regulatory control of insurance companies. Right now, consumers can oppose electric and phone company rate increases through Florida's Public Counsel office, but homeowners can't do that with insurance companies.
Feeling the heat, Governor-elect, Charlie Crist, and some key legislators have said that the Citizens rate increase planned for March may be too big a bite and that the insurance bill that required the rate increases needs to be re-worked.
No one is happy, but one thing is certain. The legislature and the new governor better get it right before March rolls around.
posted by Conchette at 6:33 AM
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