In an effort to obtain a better look at insurance contracts with state agencies and any impact on public dollars, Tom Gallagher, Florida Chief Financial Officer, has subpoenaed Marsh & McLennan for documents related to the purchase of property insurance coverage for state-owned buildings. Also, during the meeting of Florida’s governor and Cabinet today in Tallahassee, the CFO recommended extending the current moratorium on insurance non-renewals or cancellations for hurricane victims whose homes have yet to be repaired.
“While we are investigating potential abuses in the insurance industry to protect Florida’s consumers, we are now taking a deeper look at insurance contracts with state agencies and any impact on public dollars,” Gallagher said. “We will not tolerate any abuse of tax dollars.”
Gallagher announced a broader look at the insurance industry as a whole last week, establishing a legal task force to investigate whether any of the activities outlined in New York Attorney General Eliot Spitzer’s recent civil suit are taking place among insurance brokerages and companies in Florida, including bid-rigging, kickbacks and improper fees. Spitzer’s suit alleges civil and criminal misconduct involving insurance brokers steering business to insurance companies for a commission.
“Homeowners who lose their insurance coverage before repairs are complete are uninsurable,” Gallagher said. “For the thousands of hurricane victims who are still waiting for repairs, extending the moratorium on non-renewals and cancellations gives them peace of mind as they rebuild their homes and lives.”
Recognizing that many homeowners are being told they must wait up to six months to schedule repairs due to a shortage of construction contractors, Gallagher has asked the Office of Insurance Regulation to develop an emergency rule prohibiting insurance companies from canceling or non-renewing homeowners insurance coverage until repairs are complete. The rule would be considered at the next scheduled Cabinet meeting, Nov. 23.
Gallagher said this issue may require legislation but wanted an emergency rule to be drafted in anticipation of approval by the governor and Cabinet at their next meeting.
Topics Florida Catastrophe Natural Disasters Hurricane A.J. Gallagher
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