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Hurricane Insurance Rates Discussed
11/10/09 - 04:42 PM
Associated Press
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click for larger image Tallahassee, Fla:

Today’s hearing involved the rates of Citizens’ customers who live in areas that are considered to be at high risk for a hurricane.

The state-run insurance company recently raised premiums for more than 600,000 residential policyholders who live away from coastal areas.

Citizens is now asking for a 7.5 percent increase for homeowners living in those coastal areas that are considered to be the most hurricane vulnerable areas of the state.

But one of state’s business organizations argues that Citizens should raise their rates across the board by the full 10 percent. Associated Industries of Florida says Citizens needs the money to ensure it has the funds available incase a big storm should ever hit the sunshine state.

AIF officials say that without an adequate increase business owners would have to pick up the tab in the form of higher taxes and higher insurance rates if a major storm were to hit the state.

Insurance regulators says they will make sure that the rate that is approved is adequate.

“We just want to make sure that whatever the rate that is ultimately put into place not just this year but future years, that it is correct and it is calculated in a way that complies with Florida statutes,” Belinda Miller of the Office of Insurance Regulation Deputy Commissioner said.

“The law requires that those rates be actuarially sound beginning January 1, 2010 but not to exceed more than 10% per policyholder per year in an increase. So this filing is to review that actuary filing we made earlier this year,” Christine Ashburn of Citizens Insurance said.

“We need to start making sure that we have enough funding for events that are coming down the road because if we don’t then business owners are gonna be hit by incredible taxes on their policies, their auto policies, their general liability and so that’s gonna force some tough decisions for business owners whither they can keep employees, whither they can continue to proves health insurance, I mean, these are real decisions that business owners need to make,” Jose Gonzalez of the Associated Industries of Florida said.

The Office of Insurance Regulation has until Nov. 20th to make a decision on the rate request.

User Comments

The real decisions that business owners need to make is to have a business in Florida or not this is crazy . What if we dont have storm hit us for years does any one get a credit where does that money go. Its not gonna help businesses keep employees . insurance is more important and its based on GUESS work.

Posted by .(JavaScript must be enabled to view this email address)  on  11/11  at  11:59 AM
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