Florida leaders wish to probe insurance coverage income
FOX 13’s Regina Gonzalez has a take a look at a report obtained by the Miami Herald and Tampa Bay Occasions exhibiting that property insurance coverage suppliers might have misled lawmakers into considering they have been struggling financially. Now, Florida Home Speaker Daniel Perez is looking for an investigation.
TALLAHASSEE, Fla. – Florida Home Speaker Daniel Perez says he needs hearings in Tallahassee after a report discovered that property insurance coverage suppliers might have misled lawmakers into considering they have been struggling financially.
What does the insurance coverage report present?
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The report is from March 2022, however was not made public till the Miami Herald and the Tampa Bay Occasions just lately obtained it by way of a public data request.
Paperwork present that insurance coverage firms in Florida justified large premium will increase for policyholders as essential to cowl losses from main storms, together with Hurricanes Irma and Michael. Between 2017 and 2019, the insurers within the examine confirmed a internet lack of about $432 million, whereas their affiliate firms confirmed a internet earnings of $1.8 billion.
On the identical time, executives reportedly distributed about $680 million in dividends to shareholders and diverted billions extra to associates.
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Cash-shifting isn’t essentially unlawful for insurers, however the report discovered that the massive quantities faraway from firms by executives violated state rules.
Because of this, Florida insurers have been weakened to the purpose the place they did not have the mandatory funds to pay claims to policyholders, which contributed to the state’s insurance coverage disaster.
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What they’re saying:
Home Speaker Perez (R-Miami) mentioned Tuesday that the Insurance coverage & Banking Subcommittee is wanting into the report, and members will probably be allowed to concern subpoenas, interview witnesses underneath oath and rent specialists.
“I am not an insurance coverage professional, however I feel the individuals of Florida ought to have the power to look into it and skim it themselves,” Perez mentioned. “And the committee members ought to have, and I ought to have, the power to dive deep into it and ask extra detailed questions. We’re it proper now from a 50,000-foot view. I feel it is higher for our members to have the chance to ask these questions on a one-on-one foundation and go from there.”
Pictured: Florida Home Speaker Daniel Perez.
Some state lawmakers are additionally suggesting that Florida’s lawyer normal ought to look into the matter additional, along with the subcommittee.
The Workplace of Insurance coverage Regulation responded to questions concerning the report, claiming that it was a draft and by no means finalized, which is why state lawmakers by no means noticed it.
The Supply: Info for this story was gathered by FOX 13’s Regina Gonzalez.
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