Where is the Old Jeff Atwater? Part II
On April 19, 2011, I wrote a blog asking Chief Financial Officer Jeff Atwater to take a stand on Senate Bill 408. Unfortunately, we didn’t hear much from CFO Atwater’s office during the debate on 408. In fact, the little we did hear appeared to be regurgitation of industry talking points about “fraud” and “cost drivers.” When SB 408 was finally signed into law in May 2011, the CFO remained silent as to the potential impacts on consumers and industry. In June, we heard nothing – in July, still nothing. However, on August 2, 2011, we finally heard from the CFO’s office. During a cabinet meeting, CFO Atwater asked the following question, "There is the reality [that] there are mortgage players who want sinkhole coverage…How does a Floridian go from paying $350, $450 a year to $3,000, $4,000 a year?"
Now that there is a public uproar about Citizens Property Insurance Corporation raising its rates an average of 400% statewide for sinkhole insurance, CFO Atwater feels that it is safe to stand up for consumers. Unfortunately, it is too little too late. During session, CFO Atwater could have spoken out against 408 or even worked to make the bill better for consumers. Instead, the CFO acted like property insurance was not his business. In case you were wondering:
Insurance consumer service is handled by the CFO, and the office is responsible for the licensing and oversight of insurance agents and agencies, as well as funeral homes and cemeteries. The CFO appoints the Insurance Consumer Advocate. Insurance fraud investigation also is overseen by the CFO. As a member of the cabinet, the CFO oversees the Office of Insurance Regulation.
As you can see, more than any other cabinet member, the CFO has a vested interest in the insurance matters in this state. To remain detached from the debate surrounding SB 408 and to take a stand only after every newspaper in the state decries the “outrageous rate increases” is simply political grandstanding. At the August 2nd cabinet meeting, Atwater asked the Insurance Commissioner if he could require Citizens to phase in its proposed 429 percent statewide average rate hike over several years instead of all at once. Phase in the proposed increase…as in a cap on the increase…as in the law prior to SB 408? The law prior to SB 408 allowed for EXACTLY what the CFO was asked for on August 2nd.
Is this what you expect from someone who once called himself the “insurance watchdog?” In this very blog, there are posts which praise CFO Atwater for his previous pro-consumer stances with respect to property insurance. We ask the CFO return to those pro-consumer roots.
Hey Sean,
What are the chances, if any, of SB 408 being repealed?
Sean, I believe you have this backwards. CFO Atwater is doing what is best for the majority of consumers, who do not wish to have, and thus pay for, sinkhole "activity" coverage. Only about 20% in Citizens buy it from Sinkhole Alley, even less statewide. Fewer buy it from private carriers. Why do you want more than 80% of consumers to pay more so they can have an optional coverage that, arguably, most others are rejecting even at today's bargain price?
The Insurance Consumer Advocates (ICA) office proposed removing sinkholes from the cap at a Citizens rate hearing, for this reason. Perhaps it is not CFO Atwater but, you who should consider returning to your "consumer roots".
Your friend and ardent admirer.
Scott Johnson :)
Let's not ask WHERE the old Jeff Atwater is, let's ask WHO the old Jeff Atwater is. Jeff Atwater is a product of the insurance and banking industry "farming system" - a Barnett Bank/Bank of America banker groomed and trained by Bank of America to be a politician. One of their successes planted right in the committees he needed to be on when he was first elected to the State House in 2000.
See this from Wikipedia "He went on to gain substantial experience in banking, and was elected to the North Palm Beach Village Council in 1993. Later, he served as chairman, president and CEO of the Barnett Bank of Broward County and the Treasure Coast, and later as Market President of Riverside National Bank for Palm Beach and Broward counties. Atwater served in the Florida House of Representatives for two years before being elected to the state Senate. Atwater was the Republican candidate for Chief Financial Officer in 2010.
Jeff Atwater and his proponents assert that his background provided him with a unique insight into legislative issues pertaining to banking, insurance, finance and fiscal responsibility. However, Riverside National Bank was taken over by the FDIC and declared a "failed bank".[1] This led former Senate President Tom Lee to appoint him as Chair of Government Efficiency Appropriations and Vice Chair of the Select Committee on Medicaid Reform."
Let's see, he was an elected official, he was being paid a fulltime paycheck by the bank during that time - well at least until Riverside Bank went under - AND WHO DO WE THINK HE WORKS FOR NOW?
We need to remember who is in our Florida legislature "working for us". I am a local Florida Insurance agent who works for and advocates for my clients. I cringe every time one of the Insurance Group newsletters I receive crows over the fact that "so and so" from "such and such" is now on the "blankety blank" insurance committee. They're not "working for us", they're working for the insurance company, the bank and themselves. And Jeff Atwater is their poster child.
Dick...I doubt it, unfortunately.
Scott...thanks for the comment. We will just have to disagree on this one. A rate increase of 400% statewide and 2000% here in the bay area is, on its face, bad for consumers. No way around it. In addition, I don't want 80% of consumers to pay anything...my point is that the proposed rate increase is unfair.
Lastly, the real point of the article was Atwater's decisions to get involved in the debate AFTER public opinion had turned against the rate increases.
There is no doubt, my good friend, that the Florida market has problems. I think we can all agree on that. It is also without question, that ALL rate increases are not automatically unfair. We just have to figure out a better way to fix Florida's system.