Viewing by month: May 2009
Florida's Checkbook
Citizens can now track Florida's spending on a new Web site called "Florida's Checkbook."
Chief Financial Officer Alex Sink, a Democratic candidate for governor, Tuesday said the site is part of a push to increase government transparency and accountability.
But she acknowledged the data is drawn from an accounting system that's still in the "dark ages." Lawmakers this year did not pass legislation Sink says she needs to revamp the system. She said she'll try again next year.
The Web site - http://www.myfloridacfo.com/transparency - includes finance reports, fund balances, state and local receipts and disbursements and contracts. Charts and graphs show revenue, disbursement and cash balance trends.
Hurricane Season 2009
It’s two weeks before the hurricane season and the battle over homeowners insurance is heating up.
During a conference call on Wednesday, Florida’s insurance industry advocates called efforts to increase Citizens Insurance rates and allow large insurers to offer unregulated rates a step in the right direction. But, they argue, it’s still not enough to counter the state’s continuing exposure to hurricane risk.
The Florida Association of Insurance Agents and the Consumer Federation of the Southeast said the state is playing Russian roulette by continuing to keep homeowners’ wind coverage rates artificially low.
“The only thing worse than expensive insurance is worthless insurance,” said Walt Dartland, executive director of the Consumer Federation of the Southeast.
The Florida House and Senate passed separate bills that would impact both Citizens and the Florida Hurricane Catastrophe Fund, both of which are greatly underfunded.
If Gov. Charlie Crist signs the Citizens bill, the state-run insurance company will be able to raise rates by as much as 10 percent a year until rates are actuarially sound. It also can increase rates by 1 percent a year to help shore up the FHCF, which sells reinsurance to the private market.
As for the catastrophe fund, the state has to reduce coverage by $2 billion over six years in some areas, and offer smaller companies more coverage.
Crist has said that he supports the gradual increase on Citizen rates, a step the Florida Insurance Regulation Office also supports.
But, Jeff Grady, president and chief executive officer of the Florida Association of Insurance Agents, pressed for the market to set insurance rates.
“New Jersey and Massachusetts tried unsuccessfully to artificially force down auto insurance rates for decades,” he said in a media release. “Only when state leaders let market forces take hold did competitive choice return and rates began to drop.”
The Florida Legislature also passed a bill that would allow large insurers such as State Farm to sell policies at unregulated rates, as long as they make it clear they are unregulated. However, Grady and other industry executives expect Crist will veto that bill.
Latest hurricane-related insurance suits filed
A total of 13 suits regarding hurricane damage claims were filed against insurance companies in Jefferson County District Court during the week of May 4-8, 2009.
The following suits regarding Hurricane Ike were filed: