As previously reported here, Florida Farm Bureau Insurance was seeking a state-wide, 28.4 percent average increase for its homeowners insurance policies. On July 30, Florida’s Office of Insurance Regulation (OIR) conducted a hearing on Farm Bureau’s rate increase request. Florida law requires the OIR to hold a public hearing for property insurance rate increase filings that exceed a statewide average of 15 percent and are based on a computer model. The OIR announced on August 5, 2008 that it has issued a Notice of Intent to disapprove Florida Farm Bureau’s rate filing. In a news release, Deputy Commissioner of Insurance Belinda Miller stated:
“The Notice of Intent is based on a thorough review of the information provided by Farm Bureau in its recent rate filing and the testimony it provided at the July 30 public hearing. Farm Bureau failed to provide necessary support for the rate increase it requested.”
Farm Bureau now has until August 26, 2008 to petition the OIR for an administrative hearing, if it chooses. Meanwhile, the company cannot implement the proposed rate increases.
As previously reported, State Farm has requested an average statewide increase of 47.1 percent for its homeowner’s policies. A hearing on State Farm’s request is scheduled for August 12, 2008.
