Fla. Denies Rate Increases for Hartford Insurance Companies

Florida Insurance Commissioner Kevin McCarty denied eight rate filings submitted by insurance companies of The Hartford Financial Services Group.

The filings submitted were not actuarially justified and lacked supporting information, according to the Florida Office of Insurance Regulation, headed by McCarty.

The OIR sent Notices of Intent to deny the rate filings, because the proposed rate increase was not commensurate with the savings obtained through the expansion of state-funded reinsurance supplied by House Bill 1A. Reinsurance is the insurance that companies buy to cover large losses.

“I am committed to ensuring that insurance companies doing business in Florida are offering policyholders the best rates possible,” said McCarty. “The rates proposed by The Hartford are not in line with this objective.”

The decision to deny the rate increases followed an Aug. 16 public hearing in which the OIR questioned various aspects of the rate filings.

Companies have until Sept. 30 to submit their final reduced rate filings mandated by the law, and the OIR will continue to review each one to ensure they are complete and reflect the policyholder savings ordered by the Legislature.

The Commissioner has the authority to hold a public hearing to question a company about its filing pursuant to Florida law. The schedule of upcoming public rate hearings and the television schedule to see them are located on the Office’s Web site.

Source: Florida Office of Insurance Regulation