Posey Statement on State Farm’s Rate Hike Denial

Tuesday, August 26, 2008

For Immediate Release

Contact:  Chris Hill

P (321) 254-6282
F (321) 242-6280

Posey Statement Regarding State Farm Rate Hike Denial

Melbourne, FL - Florida insurance regulators Monday told State Farm Florida that it couldn’t raise property insurance rates.  The state’s largest private property insurer had requested an average 47.1 percent increase.

“I couldn’t be happier that this rate hike was denied,” said Senator Posey.  “As Chairman of the Banking and Insurance Committee, I fought hard to get rid of ‘use and file’, which prevents insurance companies from hiking rates on Florida homeowners without due justification and approval from the State first.  This ruling shows that the system is working and protecting Florida homeowners.”

In response to State Farm’s claim that it must raise rates to offset lost revenue because the Legislature forced it to double discounts for policyholders who harden their homes, Posey commented:

“Florida Homeowners who have taken steps to harden their homes with shutters or new roofs deserve a reduction - they have taken steps to reduce the risk on their home, which in turn helps save the insurance companies money in the long run.”

“I encourage all Floridians to harden their homes - let’s get to them before the next storm does.”

Senator Posey, a Republican candidate for Florida’s 15th Congressional District, is Chairman of the Banking and Insurance Committee.  After two special sessions on insurance within the past year, they produced two major reform bills, one was aimed at lowering rates; the second increased consumer protections for policyholders.

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