Tuesday, September 04, 2007


From Insurance Journal - August 29, 2007

The draft regulation makes years of driving experience, driving record and a vehicle's model and safety features as the primary rating and underwriting factors in private passenger auto insurance.

The draft regulation bans insurers from using gender, marital status, education, occupation, national origin, religion, homeownership and other socioeconomic factors, some of which Burnes says are prohibited by statute and others which she deemed violate public policy, for either rating or underwriting.

It also forbids insurers from using information from credit reports or scores for rating for at least a year, during which time she said she would study the overall use of credit scores by insurers. It does not prohibit the use of credt scoring for underwriting.

This does mean that subsidization will still be alive and well. Let's hope that there is less of it.

Monday, August 20, 2007

Florida turbulence

At least some Florida legislators are seeing the light. Florida Underwriter writes:
The resulting 91-page bill swept through the insurance code with all the fury of a major storm that left insurance representatives stunned and some legislator’s in disbelief. Representative Dennis Ross (R-Lakeland) said the bill was “as close to a socialist policy that we ever came to.” He was joined by Representative Don Brown (R-De Funiak Springs) who decried the changes to Citizens Property Insurance Corporation, which makes it certain the former residual market will be the state’s largest insurer. Speaking of the freeze of Citizens’ rates until January 1, 2009, Brown noted that the bill ensured that homeowners would be eventually face potentially crippling assessments. “A one-year rate freeze is playing Russian roulette and every year you continue the freeze you’re adding another bullet to the chamber,” he said.

Leave it to Governor Crist, however, to never confuse reality for political expediency:
But no matter how dire the message, Crist and the legislature were more than happy to press forward and place their imprint on the property market. “The Florida House and the Senate have been working very hard to bring relief to our homeowners, and I am grateful for their dedication,” said Crist . “The people have pleaded for relief, and the good men and women of the Florida Legislature have answered the call. This is the right thing to do.”

The right thing to do? For whom?!