NAMIC Responds to FL Governor’s Veto of Insurance Rate Deregulation Bill

Florida Gov. Charlie Crist yesterday vetoed HB 1171, a bill that would have allowed some large insurers to write policies without strict price regulation. The statement below may be attributed to Liz Reynolds, Southeast state affairs manager for the National Association of Mutual Insurance Companies (NAMIC).

Source: Source: NAMIC | Published on June 25, 2009

"NAMIC has been working for regulatory modernization, including freedom from rate regulation, in the states for nearly 10 years. Competition, rather than heavy-handed state control, is the best regulator of the markets.

"Florida is often cited as exhibit A in the call from some to create a federal insurance regulator. Governor Crist could have altered that perception; instead, he chose to continue his misguided policies that harm consumers.

"It is unfortunate and somewhat surprising that the governor vetoed HB 1171 considering the groundswell of support from Florida consumers who expressed their desire for marketplace choice. NAMIC would have preferred that this bill be applied to all insurers, but it was a potential first step to improve the market in Florida. NAMIC calls on the Legislature to revisit this legislation, but to amend it to apply to all insurers doing business in Florida."