INDIANAPOLIS (May 1, 2008) – Legislation designed to crack down on the insurance industry is not in the best interests of consumers, according to the National Association of Mutual Insurance Companies (NAMIC). The Florida House passed an amended version of SB 2860 late last night, and the Senate concurred today.
“While the bill passed by the House is somewhat less punitive toward the insurance industry than the original legislation, it will not lead to a better insurance marketplace for consumers,” said Liz Reynolds, NAMIC’s Southeast state affairs manager. “In all likelihood, the result will be fewer choices of insurers.”
House members changed some of the more controversial aspects of the original bill, Reynolds explained. A provision subjecting insurers to Florida anti-trust laws was deleted from the final legislation, and proposals to increase certain fines 10-fold were somewhat lessened.
“Despite the changes, the bill is still fraught with problems,” Reynolds said. “Repealing arbitration, extending for another year the prohibition on use and file rates, and imposing a requirement for insurers to use only approved catastrophe models will not induce new insurers to enter the Florida marketplace.”
The measure now goes to the governor. “We are resigned to the punitive measures still included in the bill,” Reynolds said. “We appreciate the efforts by House members to tone down some of the most troubling aspects of the legislation, but we still see problems with this bill.”
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Posted: Thursday, May 01, 2008 12:00:00 AM. Modified: Friday, May 02, 2008 3:40:56 PM.
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