The “intent of the law” is completely irrelevant. First, the law doesn’t mandate that any “savings” get passed on to the consumer. So, intent has nothing to do with it. Second, the law doesn’t insulate officers and directors from the legal consequences of bad business decisions. And, buying reinsurance from an entity that is technically insolvent as we sit here today is certainly a bad business decision. So, in addition to trying to mandate the purchase of reinsurance, the OIR now is trying to mandate business management decisions which are the legal responsibility of boards and officers.
The Governor, Legislature and Cabinet officials just don’t get it – maybe State Farm’s recent action will get their attention.
How can the state pay claim when they have no money to cover the first storm, this means the companies that bought this “cheap” reinsurance from the Governor folly fund will go up in smoke and the tax payers will foot the bill via additional assessments and FIGA will cover the losses via additional assessments (POE financial)
If the wind blows this year you will see a new Governor in Florida long before Charlies term is up because he will run away in shame and need to be replaced.
The day that the government has any say in the way privately held insurance companies protect their consumers and investments is surely the end of the free market system.
It’s too bad that Citizens is not required to play by the same rules that all other insurance companies are or we would see some scared folks up in Tallahassee.
My inlaws just were cancelled by Prudential as part of their reduction in risk. Yes they can and have been hit but the storms but they are in the middle of the state. From the risk perspective, I would rather keep one in the middle of the state and cancel one on the coast.
I and two of my neighbors just got our State Farm homeowners insurance renewals and they were all over double of last year. What is going on—We live 12 miles from the beach and west of the Florida turnpike????
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The “intent of the law” is completely irrelevant. First, the law doesn’t mandate that any “savings” get passed on to the consumer. So, intent has nothing to do with it. Second, the law doesn’t insulate officers and directors from the legal consequences of bad business decisions. And, buying reinsurance from an entity that is technically insolvent as we sit here today is certainly a bad business decision. So, in addition to trying to mandate the purchase of reinsurance, the OIR now is trying to mandate business management decisions which are the legal responsibility of boards and officers.
The Governor, Legislature and Cabinet officials just don’t get it – maybe State Farm’s recent action will get their attention.
How can the state pay claim when they have no money to cover the first storm, this means the companies that bought this “cheap” reinsurance from the Governor folly fund will go up in smoke and the tax payers will foot the bill via additional assessments and FIGA will cover the losses via additional assessments (POE financial)
If the wind blows this year you will see a new Governor in Florida long before Charlies term is up because he will run away in shame and need to be replaced.
The day that the government has any say in the way privately held insurance companies protect their consumers and investments is surely the end of the free market system.
It’s too bad that Citizens is not required to play by the same rules that all other insurance companies are or we would see some scared folks up in Tallahassee.
And storms don’t hit 12 miles inland? Your head must be in the sand!
My inlaws just were cancelled by Prudential as part of their reduction in risk. Yes they can and have been hit but the storms but they are in the middle of the state. From the risk perspective, I would rather keep one in the middle of the state and cancel one on the coast.
I don’t know anything about the FB filing, but my experience has been that rate filing in FL is 99% political an 1% statistical.
I and two of my neighbors just got our State Farm homeowners insurance renewals and they were all over double of last year. What is going on—We live 12 miles from the beach and west of the Florida turnpike????