No Federal Wind, Hunter Proposes Limited Federal Insurance Oversight, Florida Agents Criticize Proposed Law, State Farm and OIR in Cease-Fire
Imagine – all kinds of legislation, hand in hand with lobbying and political positioning, just in time for the start of hurricane season on June 1. A couple of recent news stories point out the possible direction that several key measures may be heading.
Is this a tell-tale indication of the current administration’s stand on federal programs for insurance? The Obama administration reportedly is taking a somewhat quiet but strong stand opposing federal wind insurance legislation that would permit homeowners to purchase wind coverage at actuarially set rates (in addition to the already debt-ridden federal national flood insurance program).
Meanwhile, consumer advocate and former insurance regulator J. Robert Hunter provided congressional testimony that the federal government should take over capital, surplus and solvency regulation of insurance, but should be coupled with removing the antitrust exemption enjoyed by the insurance industry. He also reconfirmed his opposition to a Federal Charter for insurance.
And now Florida’s insurance agents are unsure on which side their bread is buttered the best with SB 1171, the measure before Governor Crist that allows large insurers to raise premiums without the approval of the state regulator. Yesterday, the FAIA (Florida Association of Insurance Agents) declined to take an official position on whether Crist should sign the legislation. Backers of the bill say that it would allow policyholders to retain the familiarity of their insurance company, and that some people would rather “keep a well-capitalized insurer they know and pay a little more for it,” than change insurance companies. Sounds to me a little like the old adage of keeping your friends close but your enemies closer.
Question is, will State Farm leave Florida if the measure isn’t signed by Crist? We’ve just learned that State Farm and Florida insurance regulators have decided to continue negotiating over how the giant insurer can conduct an orderly withdrawal from Florida's property insurance market, rather than proceeding to court.
Chip,
I don't think the administration has a clue about the wind-water issue and the negative impact it has had on family, community, and state economic development.
I'm ready to put a stamp on your guy and mail him back. It is one thing to oppose legislation and another to show how you don't know enough about it to oppose it.
Here we say a piece of legislation has to be dead, dead, dead and the only certain death is when the session adjours and the legislation wasn't passed.
We need to continue to educate our elected officials and appointed decision-makers and work at building support.
Nowdoucit,
I appreciate your view. Most simply have no understanding of the claims events along the Mississippi Coast following Katrina, except that it was bad. The actual legal disputes and claims handling are important enough to you, those along the Coast with the problem, and myself that we write and try to draw attention to the issue. But, we have not had much success.
Gene Taylor has done just about everything one could ask to educate and publicize the matter. When she was working with us, Cindy Stieffel Cady took clients and witnesses to Washington, D.C. that Gene Taylor met with and had testify.
My impression is there was some initial publicity and possibility. Then, the turn in events regarding Dick Scruggs, the War in Iraq, and the economy has turned the attention away from the policyholder's wind versus water issue which arises in storm surge hurricane events.
Educating our representatives to the consumers' view is no easy task when the insurance industry has full time paid lobbyists with plenty of money and constant access. I am reviewing what I personally have been doing because I feel that I am just wasting time and money hiring my own lobbyist and visiting with representatives. It is dumb to repeat what does not seem to work. Consumers, me included, are amateurs at the political "spin" game.
I wish I had an answer. Until then, we will continue to fight for the policyholder.