Session strikes a deal
By JONI JAMESPublished January 22, 2007
TALLAHASSEE - Florida lawmakers emerged from weekend negotiations with an insurance reform plan that promises double-digit rate relief by shifting hurricane risk to the state.
But the deal, which lawmakers are expected to approve today, has a downside: It will be at least six weeks before homeowners know how much they'll save, with estimates running from 10 percent to 35 percent. And it could be months before homeowners see the savings.
The plan, written during a special legislative session that opened last Tuesday, isn't nearly as tough on the industry as some politicians had promised. But it sets the stage for the state-backed Citizens Property Insurance Corp. to compete directly with private insurers, potentially shedding its role as the "insurer of last resort."
The plan removes requirements that Citizens charge the highest rates and will allow the company to sell traditional homeowners policies, including fire and theft, statewide.
Weary lawmakers hope the measures will be enough to appease an electorate enraged by skyrocketing insurance bills following the 2004 and 2005 hurricanes. Legislators pledged to revisit insurance reform during the annual 60-day legislative session that begins in March.
"You have stopped the hemorrhaging; you have stabilized the patient," Senate President Ken Pruitt, R-Port St. Lucie, told legislators who completed negotiations Sunday night. "But we know there is still more care to give before the patient is well."
From the start, this session was unique. Thousands of residents rode buses and planes into Tallahassee and protested against high premiums in any venue they could find. New Gov. Charlie Crist cheered them on and kept his own rhetoric hot, pressuring lawmakers to produce legislation guaranteeing significant cuts in rates.
