Bennett: insurance de-regulation bill dead

A skeptical governor and a rapidly shifting political landscape appears to be the death knell for a measure that would allow property insurers to raise rates without regulatory approval.

Sen. Mike Bennett (R-Bradenton), the sponsor of SB 876, said he’s throwing in the towel on the measure in the face of opposition from Gov. Charlie Crist, who vetoed a similar measure last year, and Insurance Commissioner Kevin McCarty, who has opposed the idea.

The measure would have allowed insurance companies to raise individual rates up to 20 percent a year without Florida Office of Insurance Regulation approval, providing their average statewide increase was no higher than 10 percent. The companion House measure, HB 447, was scheduled for a floor vote Wednesday but it was postponed.

Sen. J.D. Alexander (R-Lake Wales), a supporter of the measure, said the votes aren’t there to override a veto and prolonged debate would be a waste of time.

“It doesn’t make any sense to spend time debating something the governor has come to a committee hearing to oppose,” Alexander said.

Bennett’s measure is among a handful of industry-backed property insurance bills traveling through the Legislature. Another Senate bill, SB 2044, may still see the light of day. The measure does not contain the rate increase provision, but it does allow insurers to withhold a portion of a claims payment until repairs are started or replacements are purchased. It also reduces the time policyholders have to file claims after a storm.

“If any insurance bills come out of the session this year, I think (SB 2044) will be it,” Bennett said. “I just don’t see it happening otherwise.”

Political considerations may also play into the decision. With Crist considering a run for the Senate as an independent candidate, he could use a veto against his Republican opponent by noting that he alone saved Florida homeowners money on their property insurance rates. The governor has already vetoed party-backed legislation this session, and Republican lawmakers may not want to give Crist another chance to do it again, especially if Crist could use the veto as ammunition against a Republican candidate.

“Why would you vote for an insurance increase when they know the governor will veto it?” said Rep. Ron Saunders, R-Key West. “All along he’s been saying ‘make my day.’ They’ve already helped him enough (with two recently vetoed bills on teacher tenure and leadership funds). They don’t want to help him anymore.”

Source: News Service of Florida, Michael Peltier