Gov Crist today vetoed HB 1171, the State Farm bailout bill. FCAN and numerous other consumer groups had urged the veto. We thank the Governor for his wise decision.
Had the bill been signed, Florida insurance rates would have skyrocketed and thousands of policyholders would have come the the state run Citizens Property Insurance company.
Now, it remains to be seen whether State Farm will follow through on its threat to leave the state. This blog has always maintained that State Farm is bluffing and that they will find an excuse to stay. My guess would be that they say market conditions have changed and that they will accept a 20% or 30% rate hike from OIR. They will dramatically dump a few policies and then go back to business as usual, namely bullying everyone else.
State Farm's loss will be the gain of smaller companies trying to get into the Florida market. Our insurance market is growing and competition is increasing. That can now continue.
Wednesday, June 24, 2009
Governor Vetos 1171
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THE VETO WILL LEAD TO MUCH HIGHER RATES AND MUCH LESS COVERAGE FOR ALL. CONGRATS TO THOSE WHO URGED THE VETO. YOU WILL NOW GET TO SEE THE DISASTER THAT WILL FOLLOW.
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