Florida lawmakers are considering legislation that would revoke the insurance industry’s antitrust protections in the state as part of an effort to resolve the difficulties facing the state’s insurance market.
The legislation, Senate Bill 2860, is expected to be voted on by the Senate this week and makes several “major” changes to the state’s insurance laws, according to a senate staff analysis.
Among the provisions in the bill are those freezing rates for the state-run Citizens’ Property Insurance Corp., increasing the penalties for violations of the insurance laws, and changing the standards and procedures for rate filing.
However, a provision that has significant concern for insurers would subject the insurance industry to the Florida Antitrust Act and enforcement under the state Attorney General’s Office in addition to the authority already held by the Office of Insurance Regulation.
“Dual regulation is duplicative in nature and creates confusion for everyone involved,” said David Sampson, president and chief executive officer of the Property and Casualty Insurers Association of America (PCI).
“We believe that regulation of trade practices should remain the domain of the insurance department. The Insurance Code of Florida already provides sufficient regulatory authority over insurers through the Office of Insurance Regulation,” Mr. Sampson said.
He noted that there is nothing to prevent
While Mr. Sampson fretted the potential implications that state antitrust laws and their enforcement could provide, the current insurance regulator was more at ease. Edward Domansky, a spokesman for the OIR, said that the antitrust language is “not a concern” to the office.
Mr. Sampson said it “appears likely” that SB 2860 will be passed by the Senate, but noted that there is currently no companion legislation in the state House. He said he hoped leaders in that chamber would consider other means of helping the citizens of
“The punitive measures against insurers in the Florida Senate's property insurance proposal get us no closer to where we need to go—finding long-term solutions that protect homes and families and shield the state from potential bankruptcy,” he said. “If we cripple the private insurance market, we threaten the economic future of the state and place risk on the backs and wallets of all Floridians.”
At the federal level the insurance industry has a limited antitrust law exemption under the McCarran-Ferguson Act. Enacted in 1945 in response to a Supreme Court ruling the year before, the law specifically set insurance as a state-regulated industry and allows insurers to cooperate on data collection for ratemaking purposes.