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Insurance committee passes bill to deregulate home insurance rates in FloridaPosted On Thu, March 17, 2011
Under Florida law, regulators have the ability to reject rates that home insurance companies set if they consider them to be excessive. But that ability may be a thing of the past as a bill stripping them of that power passed the Senate's insurance committee.
According to the Sun Sentinel, SB 1330 was approved 6 to 3 among the nine Florida legislators on the committee.
Should the legislature eventually pass the bill, the paper reports insurance companies operating in the state would be able to charge up to 15 percent more than what regulators have approved and 30 percent more for individuals who bought insurance policies on their own.
The chief sponsor of the bill, Senator Alan Hays, told the paper he believes the bill will lure insurers to the Florida market, giving customers more options.
Florida is among several states with regulatory boards requiring insurers to submit their premium price proposals to the board before going on to the consumer. But many argue that regulatory boards only increase rates. The American Consumer Institute Center for Citizen Research issued a report last February detailing why price regulation winds up costing the consumer more money in the long run.
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