News from October 2005
Nationwide Insurance to Repay Millions
TALLAHASSEE – Tom Gallagher, Florida’s Chief Financial Officer, today applauded the agreement between Nationwide Insurance Company and the Office of Insurance Regulation to correct millions in underpayment of insurance claims resulting from the 2004 hurricanes. Gallagher’s Department of Financial Services compiled the complaint files and hurricane deductible information used in the investigation and audits.
“I congratulate the insurance commissioner for reaching this agreement with Nationwide,” said Gallagher. “The level of complaints my office received from Floridians definitely indicated that consumers were not being treated fairly. This agreement should go a long way toward making the consumers whole.”
Posted on 14 October 2005
Committee For Homeowners Insurance Formed
TALLAHASSEE – Tom Gallagher, Florida’s Chief Financial Officer, today announced a ten-member committee tasked with developing a standard homeowners insurance policy for Floridians that is both easy to understand and offers comprehensive coverage. State lawmakers called for the committee in response to Gallagher’s concern that many victims of the 2004 hurricanes were not adequately protected because they either did not understand the complex language in their insurance policies or had not updated their policy limits to keep pace with increasing property values.
“Time after time, in the hurricane recovery town hall meetings I held around the state and in calls to my office, Floridians said they were surprised at what their policies didn’t cover or that their coverage was not enough to rebuild their homes,” said Gallagher, who oversees the Florida Department of Financial Services. “The committee is tasked with developing a simple, plain-language homeowners insurance policy with the consumer in mind.
The new law, passed by state lawmakers in the 2005 session, requires Gallagher to appoint an advisory committee that includes two members recommended by Insurance Commissioner Kevin McCarty, two appointees from the residential property insurance industry, two property insurance agents, two consumers and Florida’s Insurance Consumer Advocate. The committee must issue its recommendation to the Legislature by January 15, 2006.
Along with announcing the members of the Standard Personal Lines Advisory Committee, Gallagher also announced the committee’s meeting schedule. The first committee meeting is scheduled to be held in Room 110 of the Senate Office Building on October 4th, from 10 a.m. to 5 p.m., in Tallahassee. The other scheduled meeting dates are October 28th, November 17th and December 6th. The final meeting will be on January 4, 2006.
Members of Standard Personal Lines Advisory Committee
CHAIR
• CFO Gallagher’s designee – Rick Mahler, Deputy Chief of Staff, Department of Financial Services
COMPANY REPRESENTATIVES
• Joel P. Curran – Towerhill Insurance Group, chief underwriting officer and senior manager.
• Jim Graganella – Capital Preferred & Southern Fidelity Insurance Companies.
President / CEO.
AGENT REPRESENTATIVES
• Hector Fortune, Fortune Insurance.
• Bruce A. Baker, USI Insurance Services of Florida, Inc.
CONSUMERS
• Rick Suarez, Miami, Florida, proprietor of Ready Windows.
• Arnold Whisenant, Jacksonville, Florida, retired.
OFFICE OF INSURANCE REGULATION RECOMMENDATIONS
• Dr. Elizabeth Beard Goldsmith, Florida State University, Professor. National Association of Insurance Commissioner’s Consumer Representative.
• Richard C. Koon, Office of Insurance Regulation, Senior Management Analyst, Director Policy Forms.
INSURANCE CONSUMER ADVOCATE
• Steve Burgess, State of Florida.
Posted on 4 October 2005
Allstate Insurance Hike Denied
TALLAHASSEE – Tom Gallagher, Florida’s chief financial officer, today applauded Insurance Commissioner Kevin McCarty’s decision to disapprove rate increase requests from Allstate Floridian Insurance Company and Allstate Floridian Indemnity Company.
Gallagher said that an independent review by the Consumer Advocate’s Office in August revealed that the companies’ rate requests were unjustified.
“This is great news for Allstate’s policyholders,” Gallagher said. “We will continue to closely scrutinize rate requests and demand accountability.”
In June, Gallagher called for an independent review of Allstate’s rate requests and criticized Allstate’s pursuit of higher rates on the heels of dropping 95,000 of their policyholders.
The independent review, conducted by the Consumer Advocate’s Office, was published in August and forwarded to the Insurance Commissioner’s Office. The review revealed that these Florida-only companies were attempting to justify their rates based on losses from other states and had not adequately documented how the reduction of 95,000 policyholders was factored in their rates.
At that time, Gallagher urged the Insurance Commissioner to stop Allstate from billing Florida homeowners for an unapproved, excessive rate increase.
“In the wake of multiple hurricanes, I recognize that there will be pressure on insurance rates,” Gallagher said. “But it is mission critical for Florida homeowners that we continue to aggressively scrutinize rates while also pursuing solutions for enhancing competition so consumers have choices.”
As a statewide elected officer of the Florida Cabinet, Chief Financial Officer Tom Gallagher oversees the Department of Financial Services, a multi-division state agency responsible for management of state funds and unclaimed property, assisting consumers who request information and help related to financial services, and investigating financial fraud. Gallagher also serves as the State Fire Marshal.
Posted on 10 October 2005
Tourism Responds To Brady Campaign
Visit Florida, the State's official tourism arm has issued the following statement in response to the Brady Campaigns policy of highlighting a change in the law regarding personal defence that came into being on October 1st.
Florida is a very safe and secure destination that excels in caring for its visitors. On any given day, Florida hosts a million visitors. In 2004, Florida welcomed 79.7 million visitors, a record for the state.
-- Florida has a low crime rate. In fact, it’s at a 34-year low and has been falling for 13 consecutive years. (2004 Florida Annual Uniform Crime Report.)
-- We believe that our visitors are wise enough to understand that the Brady Campaign is one group’s political agenda and not a real safety issue. It is a scare tactic campaign, not an education campaign as stated.
-- In 1987, the same group predicted that the gun permit law passed in Florida that year would increase gun violence. This increase in violence never occurred. A change in a law does not necessarily create a change in behavior.
Statement From Florida’s Office of the Attorney General
"Along with VISIT FLORIDA, we welcome visitors to the sunshine state with open arms and make their enjoyment and safety a top priority," said Florida’s Attorney General Charlie Crist. "Florida is a very safe and secure destination and our leaders continually strive to enhance the personal safety of the nearly 80 million global visitors who travel here annually."
He added, "The new Florida law that groups are using to raise visibility for their political agenda already exists in at least 26 states throughout the country allowing you to protect yourself if attacked. Some groups are assuming that the average Florida citizen will change their behavior in a negative manner in response to this law. In reality, law enforcement and the courts are not going to allow this to happen."
Statement from Gary Kleck, Ph.D., Criminology and Criminal Justice
"There is no evidence at all that this sort of law results in people using unjustified force in self-defense. The Brady Campaign has always been hostile to self-defense in general and would like the Florida legislature to reverse their position. The group is trying to hold the tourism industry hostage to further their purposes," said Dr. Gary Kleck, Professor and Director of Graduate Studies, Criminology and Criminal Justice, Florida State University.
Posted on 7 October 2005
Tropical Storm Wilma
The arrival of Tropical Storm Wilma on 17th October 2005 means that for the first time since 1933, all the names have been used. Wilma is the 24th tropical storm to have formed and the 21st to have been named. There are still 6 weeks to go until the end of this years' hurricane season, and it looks like it could well be a real record breaker.Posted on 17 October 2005
