Calls for revamping Citizens Property Insurance Corp., the state-run carrier for those who can’t find private coverage, has been a rite of spring in Tallahassee for years.

But Gov. Rick Scott on Tuesday is looking to accelerate that discussion — even as he still looks intent on finding a private company willing to take over Citizens, which now has 1.4 million policies statewide.

About half the homeowners’ policies in Florida are held by Citizens, which also is dealing with what actuaries say is 70 percent of the risk.  Coastal homes and condos, which face a high hurricane threat, form the bulk of the company’s line.

Meanwhile, Citizens is adding 4,000 to 5,00o policies a week — with private carriers continuing to cold-shoulder high-risk Florida homeowners, officials said.

“This is not something we can continue to do,” Scott told the Cabinet on Tuesday.

Scott wants the Citizens governing board to meet later this month and present a blueprint for Citizens’ future Dec. 6 to him and the Cabinet. The goal, he said, is simple:” “to shrink exposure.”

With Hurricane Irene bypassing Florida, the Sunshine State was spared death and destruction — as well as the weirdness of dealing with the “federal family” for post-storm assistance.

Here’s the headline on a Tuesday news release from the Federal Emergency Management Agency that landed in the PostOnPolitics.com inbox:

“FEDERAL FAMILY CONTINUES TO SUPPORT RESPONSE AND RECOVERY EFFORTS IN COMMUNTIES [sic] IMPACTED BY IRENE”

According to the FEMA release, “Under the direction of President Obama and Secretary Janet Napolitano, the entire federal family is continuing to lean forward to support our state, tribal, territorial and local partners as they respond to and begin to recover from Hurricane Irene….”

Read the whole thing after the jump…

(more…)

Gov. Rick Scott signed into law today a sweeping property insurance measure (SB 408) hailed by the insurance industry but denounced by consumer groups.

Critics say the new law, which goes into effect immediately, will allow insurance companies to raise rates up to 15 percent and make it harder for Floridians to collect on claims. Proponents contend the law will draw new insurers to the state and increase competition.

“A healthy, stable and competitive private insurance market is critical to the success of Florida, given the hazards we face,” Scott, whose staff helped craft the bill, said in a statement. “I commend the Florida Legislature, especially Senator Richter and Representative Wood, for bringing this important legislation forward.”

The new law undoes many of the changes approved by lawmakers and Gov. Charlie Crist in the wake of the catastrophic 2004 and 2005 hurricane seasons.

Among other things, the new law:

- Shrinks from five years to three years the time homeowners have to file claims for hurricane damages;
- Lets insurers make homeowners to pay for repairs before getting reimbursed;
- Permit insurers to raise policyholders’ rates without prior approval from regulators;

Scott’s signature prompted a flurry of accolades from the insurance industry and business groups and a dour statement from Sen. Mike Fasano, who urged Scott to veto the measure.

“For an administration which vowed not to support new taxes or fees, this bill virtually guarantees a 15% premium ‘reinsurance’ increase for Florida policy holders. This is a backdoor tax and fee increase that will hurt most homeowners with a mortgage, consumers and small business owners at a time with very high foreclosure and unemployment rates, all during a fragile economic recovery,” Fasano, R-New Port Richey, said in a statement.

But supporters insist the new law will open up Florida’s insurance market.

“Despite what the critics say, signing this bill into law is the first step toward stabilizing Florida’s property insurance market. It will increase competition by attracting insurance companies that currently do not write property insurance policies in Florida,” said Mark Wilson, president Florida Chamber of Commerce.

Read some of the other blurbs after the jump.

(more…)

Gov. Charlie Crist cooled his heels for more than an hour as the Senate Communications, Energy and Public Utilities Committee grilled his two Public Service Commission appointees, Steve Stevens and David Klement, but left before the committee took a final vote.

Crist left shortly before 11 a.m. (Lt. Gov. Jeff Kottkamp took his place) to attend a bill signing after being kept on ice by committee chairman Alex Diaz de la Portilla who took up two other bills before getting to the appointment confirmations.

The full Senate must approve the appointments once the committee signs off on them, if they do.

“Both of these men are men of great integrity,” Crist told the committee before the interrogations began. “That’s why I chose to appoint them from the pool that was given to me from you. I believe the Public Service Commission is a great panel. It can do very good work., and I know that these two men are dedicated to doing this. That’s all I wanted to say.”

But that wasn’t enough for Sen. Chris Smith, a black Democrat from Ft. Lauderdale who has raised concern in the past about the lack of diversity on the panel.

(more…)

UPDATE: Senate President Jeff Atwater sent word through his spokeswoman that “20 percent is too much.”

Gov. Charlie Crist said the main property insurance bill in the legislature had little chance of passing, calling the proposed 20 percent cap for increases to individual Citizens policy holders “excessive” and questioning whether the measure would get past Senate President Jeff Atwater, R-North Palm Beach.

“As I’m sure you know, Atwater was one of the strongest leaders in giving us the opportunity to strengthen Citizens,” Crist said. “So I don’t know if that’s going to go very far.”

The proposal is expected to contain several changes, including one that would use the state pension fund to loan $2 billion to the Florida Hurricane Catastrophe Fund in the event of a major storm.

Crist said he wasn’t wild about that one, either.

“Getting some backup from the federal government, I think, is a better way to go,” Crist said. “I think it’s very doable.”

Last year, Crist and the Cabinet paid Warren Buffett’s Berkshire Hathaway $224 million for a promise to loan the state $4 billion if a major storm hit the state. This year, Crist and the Cabinet are appealing to the federal government. More on that attempt here.

(more…)

A property insurance proposal from Rep. Bryan Nelson, R-Orlando, and Sen. Garrett Richter, R-Naples, would lift a recommendation from the Citizens Property Insurance Corp. Mission Review Task Force and increase rates from the state-run insurer by a statewide average of 10 percent and up to 20 percent for individual policy holders.

The plan, expected to be unveiled in respective committee hearings this week, would also:

* Reduce the capacity of the Hurricane Catastrophe Fund by $12 billion over six years, which could result in Citizens and private insurers raising the cost of property policies. State officials estimate an average annual increase of 3 percent.

*Allow the state to borrow $2 billion from the state pension fund to back up the catastrophe fund in event of a hurricane.

* Use $26 million from the proposed Citizens increases to pay for My Safe Home Florida, which helps homeowners finance new storm windows and fortified roofs.

More here.