Insurance Rates, Policies Temporarily Frozen
Governor Charlie Crist convinced fellow cabinet members to approve an emergency rule preventing property insurers from canceling Florida policies for the recent future. It also freezes rates through the end of the hurricane season.
CRIST: Allstate Insurance alone has already cancelled 106,000 policies on the people of Florida. My parents' policy was cancelled last week.
Chief Financial Officer Alex Sink and Agriculture Commissioner Charles Bronson worry the rule goes too far and may discourage new insurers from coming to Florida.
President of the Florida Insurance Council - Guy Marvin - says the rule will hit the insurers' bottom line.
MARVIN: Even though it is over a 90 day period which is the maximum the law allows for an emergency rule, the rule will have drastic, negative impact on the financial statements of some of our members.
Lawmakers last week passed a bill that is expected to result in lower rates. Yet, it doesn't take affect until June.
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