The Property Casualty Insurers Association of America (PCI) has released a new report concerning the state of Florida’s personal injury protection (PIP) regulations. Florida lawmakers recently passed a new set of rules that govern the PIP insurance system, which established no-fault auto insurance laws in the state. The insurance group claims that the law also institutes a so called “fraud tax” which may drive up insurance prices in the state and put consumers at risk of being victimized by dubious business practices. PCI has proposed a number of legislations that…
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Rates for Florida workers’ compensation to increase by 8.9 percent by 2012
According to Kevin McCarty, the Florida Insurance Commissioner, the insurance rates for workers’ compensation are slated to increase by 8.9 percent, and will do so beginning on January 1, 2012. By giving his approval for the rise in rates, McCarty has simultaneously refused the National Council on Compensation Insurance (NCCI) rate request, stating that there was a flaw in the council’s methodology. Equally, McCarty has denied another increase proposal by the NCCI regarding minimum premiums. Should the NCCI wish to continue to pursue its request, it will need to re-file. …
Read MoreFlorida catastrophe fund faces major financial deficit
Florida’s hurricane fund is facing a major financial shortfall, according to Jack Nicholson, chief operating officer of the fund. The fund, which was established in the wake of 1992’s Hurricane Andrew, provides money to insurance companies in order to help those displaced by natural disasters. Nicholson issued a warning to state legislators this week that noted that the fund faces a $3.2 billion deficit and will not be able to offer aid in the event of a major storm for the immediate future. This year, the fund has provided insurers…
Read MoreFlorida to build an independent insurance exchange exclusively for small business
Amidst ongoing controversy surrounding the federal health care laws, Florida has opted to take its own approach on a mandated insurance marketplace. The law requires that all states have a working health insurance exchange in place by 2014. The exchanges are meant to be an online insurance marketplace where consumers can find affordable policies. Florida stood in opposition for the federal health care law since it was passed in 2010, and state legislators have expressed their discontent for the exchange initiative in the past. Now, the state is attempting to…
Read MoreLloyd’s enters Florida’s reinsurance market on the heels of new law
Lloyd’s of London, one of the world’s leading insurance and reinsurance specialists, is entering Florida’s reinsurance market. The company joins several other reinsurance organizations flocking to the state to take advantage of a new law that reduces capital requirements for reinsurers. The law, first introduced in 2009 but only recently passed, is an attempt to attract more foreign reinsurance companies to do business in the state, thereby reinvigorating the somewhat stagnant market. Because of the law, Lloyd’s has been approved to do business in the state. According to the law,…
Read MoreState Farm pulls out of church market in Florida, as well as others
State Farm has announced that it will no longer be offering insurance coverage to churches in Florida. The company’s exit from the market leaves hundreds of churches throughout the state looking for new insurance companies. The move is part of the company’s desire to focus more on the property market in the state, a plan that sees the insurer pulling out of other markets in the coming years. The insurer has not released estimates of how many churches will be affected by the decision, but has said that at least…
Read MoreChief of the Florida hurricane fund voices concerns regarding cash shortage
The chief operating officer of the hurricane fund in Florida, Jack Nicholson, has expressed serious concerns about the fund’s ability to assist insurance companies in paying for claims that have been made following major storms. Florida has been using the hurricane fund for almost two decades, since the time when the southern part of the state was devastated by Hurricane Andrew. Money from the fund is provided to insurance companies in order to assist them in paying off claims made by homeowners in the event of a hurricane – or…
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