With just a few days left in their regular session, the Florida Senate began debate Tuesday on a bill that would expand the state-run Citizens Insurance Program. A vote could come Wednesday.
"Under this bill, it allows Citizens to be more competitive and go statewide along with allowing people to have a choice and not be forced into one company just because that's the only one available,” said Sen. Mika Fasano (R) New Port Richey.
The capitol rotunda is the place to be for lobbyists these days. They are here for any number of reasons, but it is arguable that the insurance issue tops the list, and on this bill, they are putting up a fight.
That is because Citizens used to be known as the insurer of last resort, but changes have made it a secondary, cheaper option, one that's available even if a private insurance company agrees to write you a policy. The catch is other companies offers must be 25 percent more expensive than the Citizens quote in order to qualify. The bill would lower that to 15 percent.
Lobbyists for the insurance industry argue the bill will make it harder for private companies to do business in Florida. Sam Miller with the Florida Insurance Council said that unlike the state, the private market has to turn a profit.
“The bill says you can say, no way Jose, I'm going to go into citizens because I know that I'm not going to be charged the true rate. People in the rest of Florida are going to bail me out," he said.
Then, there is the fight to outlaw “pup companies,” Florida subsidiaries of the national insurers. Some claim they only exist to hide the record profits those insurers are making overall. State Farm lobbyist Mark Delegal disagrees.
“It's nonsensical economic policy, violates every principle of insurance rate-making throughout the country, through the casualty actuarial society, and hopefully it will be taken out of the bill," he said.
In a compromise designed to corral support for the bill, pup companies currently doing business in Florida would be allowed to stay.
In Tallahassee, Troy Kinsey, Central Florida News 13.