Around the state, insurance premiums are skyrocketing, and Floridians are unable to afford the huge cost of windstorm insurance. That is why the Legislature needed to act this year to lower insurance rates, create more competition, and increase the availability and affordability of insurance.

On the last day of the session, however, the House and Senate passed an insurance bill that does little to fix the crisis in Florida's hurricane insurance market. In a time when insurance companies are leaving the state and insurance rates are increasing exponentially, true reform was pushed aside in favor of making it easier for insurance companies to raise rates.

You might be wondering what planet the Republican-led Legislature lives on.

The Republican plan this year allocates $715 million to Citizens Property Insurance Corp. for the purpose of reducing the 2005 assessment that will be added to Floridians' insurance bills.

But due to the 2004 and 2005 hurricane seasons, Citizens has a deficit of $1.7 billion. Floridians will still see assessments and premium increases on their insurance bills. The great minds in Tallahassee got together and decided to pay Citizens $715 million, and your insurance rates are still going up.

Still, a decrease in assessments sounds great. But the truth is that this bill also makes it easier for the remaining insurance companies in Florida to charge higher rates. It removes important consumer protections in some cases, such as adequate oversight by the Office of Insurance Regulation and rate request hearings.

Republicans argue that allowing Florida's insurance companies to charge higher rates will entice other companies to come to Florida. In other words, our government believes that Floridians paying higher rates is the solution to the current crisis.

As insurance companies leave Florida, property owners are forced to purchase insurance from Citizens. Under this legislation, Citizens will continue to grow. Florida's "insurer of last resort" has now become the second-largest insurer in the state. With the private market charging more and thousands of Floridians being pushed into Citizens, it is clear the Legislature has done nothing to address this growing crisis.

Legislative Democrats presented a logical solution to Florida's property insurance crisis, but our idea was never given serious consideration. The Democratic plan would have created a statewide hurricane insurance fund offering coverage up to $100,000. With the fund bearing the greatest risk, insurance companies would be able to provide traditional policies for Floridians. With the risk of hurricane damage already covered, insurance companies would not be afraid to write policies in Florida or offer windstorm coverage over $100,000.

Even Republicans can agree that when more insurance companies compete in Florida, we will see the market stabilize and insurance rates decrease.

The Legislature failed Florida's homeowners by ignoring common-sense solutions to our property insurance crisis and by passing this last-minute, insufficient bill. It isn't important whether the Legislature adopts a Democratic or Republican idea, but it is important that the Legislature solves the problem.

My Democratic colleagues and I believe that we owe it to the people of Florida to go back to Tallahassee and solve the problem. We have a Web site (www.stormingmad.com) which I urge you to visit if you are concerned about rising insurance costs. Once online, you can read more about our plan and learn how you can take action on this very important issue.

I encourage you to contact your elected officials and let them know that they should support true property insurance reform.

Florida Rep. Ken Gottlieb of Miramar represents District 105. E- mail Ken.Gottlieb@
myfloridahouse.gov.

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By Ken Gottlieb

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