Crist-Crossed

It’s a new day in several state houses in the Southeast, which has been red for years but went even redder as it got caught up in the Republican tide that swept the nation.

Voters elected new Republican governors in Alabama, Florida, Georgia, South Carolina and Tennessee. Some of those states could soon have new insurance commissioners as a result.

Georgia elected a new Republican insurance commissioner, state Sen. Ralph Hudgens. Florida also elected a new Republican CFO, state Sen. Jeff Atwater. The North Carolina Senate is now in Republican control for the first time since 1870. The Alabama legislature is under Republican control for the first time since Reconstruction. There will be changes in state House and Senate leadership positions when the legislatures convene next year.

The industry has an excellent opportunity next year to make its case on state tort reforms, rate regulation, workers’ compensation costs and other issues that may have stalled in recent years in Democrat-controlled committees.

In one state, change may not have to wait until next year. In Florida, incoming Republican legislative leaders are considering calling a special session before January to override some of outgoing Gov. Charlie Crist’s 18 vetoes of the past year. On Nov. 16, Florida House Speaker-designate Dean Cannon and Senate President-designate Mike Haridopolos will be elected by their respective chambers. Lawmakers could hold a special session then or during the week of Dec. 6.

The legislative leaders say they haven’t yet developed a list of override targets, but Haridopolos told The Associated Press that they are looking for measures that will remove barriers to business growth and promote jobs.

“We’re looking for bills that passed overwhelmingly in the Senate and the House, meaning in a bipartisan fashion,” Haridopolos said.

That sounds like Crist’s veto of a widely supported omnibus property insurance bill, SB2044, could be on the list of vetoes to be reconsidered. It should be.

Back in June, Crist vetoed the measure that even his own insurance commissioner had urged him to sign. Crist said he vetoed it because he believed it would have made it easier for insurance carriers to get rate hikes to cover reinsurance costs up to 10 percent a year. That was a very narrow reading of the very broad bill. The truth is that while the process would have been streamlined, the insurance commissioner still would have had to approve these hikes.

The insurance industry along with Insurance Commissioner Kevin McCarty had backed the compromise bill as one way to get at some of the forces driving up costs, including rising sinkhole claims and reopened claims from Hurricane Wilma. It would more closely regulate public adjusters and allow insurers to retain a portion of replacement cost payments until there is proof repairs are being made. It also raises capital requirements for new home insurers and more closely regulates insurers’ transactions with their affiliated MGAs. And it has a number of consumer provisions including a web site to help homeowners shop for insurance. In short, the bill has something for everyone, except Crist, who won’t be around in January.

If Florida lawmakers are making a list of things to do before Christmas, overriding the veto of SB 2044 should be on it.

Topics Florida Legislation