The following statement can be attributed to Liz Reynolds, Southeast state affairs manager for the National Association of Mutual Insurance Companies (NAMIC), on the House passage of the Florida omnibus property insurance package.
“NAMIC is pleased that the Florida Legislature has taken another step forward on the path to an improved marketplace for property/casualty insurance consumers and companies. Addressing cost drivers, such as public adjuster expenses, replacement cost claims, reinsurance premiums, and inappropriate mitigation discounts, should help companies that are struggling to maintain surplus and stay in business to make good on promises to policyholders.
“It is unfortunate, however, that the governor's threat to veto ‘Consumer Choice’ legislation derailed provisions that would have allowed insurers to appropriately and accurately match rate to risk and encourage competition that can only benefit insurance policyholders.
“Florida needs to create a business climate and competition-based pricing in which the free market is alive and well for the purchase of insurance. Such a market helps build a clear understanding of the true cost of risk, which would promote wiser decisions with a long-term view regarding land-use planning and resource management. Only then will consumers have plentiful and sustainable choices for coverage.
“Again, we are pleased with the changes approved by the Legislature and hope Governor Crist will sign the bill.”
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Posted: Sunday, May 02, 2010 12:54:41 PM.
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