Florida Insurance Commissioner Kevin McCarty affirmed the ruling of an administrative law judge regarding the rate filing challenge between the Office of Insurance Regulation and The Hartford Companies.
McCarty’s order officially disapproves the rate filings Hartford submitted and adopts the judge’s findings.
The Florida Division of Administrative Hearings heard the matter Jan. 22-24. Administrative Law Judge Lisa Shearer Nelson issued an order disapproving the rate filings on March 28. The judge based her recommendation on the deficiencies set forth in the OIR’s original notices of intent to disapprove, issued Sept. 10, 2007.
Hartford initially reduced its rates by an average of 13.6 percent, effective June 1 in accordance with the OIR’s presumed factors. With its Sept. 30, 2007, true-up filing, Hartford requested an average increase of 39.6 percent, OIR said.
As part of Florida Legislation (HB 1A) passed in January 2007, lawmakers expanded the Florida Hurricane Catastrophe Fund to $28 billion – a $12 billion increase – requesting insurers to purchase cheaper reinsurance from the increased CAT Fund and pass the savings along to their policyholders.
Of the 200-plus insurers that made true-up filings, only two resulted in litigation, Hartford and Farm Bureau. On April 1, an administrative law judge in the Farm Bureau matter similarly recommended an order in favor of the OIR. A final order from Commissioner McCarty is expected to be issued soon.
Hartford may appeal the order to the District Court of Appeal within 30 days.
Source: Florida Office of Insurance Regulation
Topics Florida Legislation
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