TALLAHASSEE, Fla. (AP) - The huge insurance premium increases paid by consumers to protect homes and businesses in the aftermath of the 2004 and 2005 hurricane seasons have been largely contained as a result of a new law passed in a special session last year, a state regulator told lawmakers Tuesday.

And, of course, quiet hurricane seasons the last two years have helped.

'We're just praying for no more storms,' Sen. Bill Posey, R-Rockledge, said.

Posey, who chairs the Senate Banking and Insurance Committee, said lawmakers held their breath on a number of components in the bill (HB 1A) that passed last January.

'A lot of them were hunches,' Posey said. '(But) I think it shows we're moving in the right direction.'
Deputy Insurance Commissioner Belinda Miller told the panel that most of the industry has complied with the new requirements while others who have had rate hikes rejected by the state would pursue them in court.

'I really don't think there's been any rate increases since we passed our laws,' Posey noted. 'I think it is working.'
The largest savings were expected to come from expanding insurers' access to the state's Hurricane Catastrophe Fund, which pays claims when the companies can't. The insurance companies pay into the fund, but the coverage is cheaper than the private backup insurance carried by many companies.

The legislation also required insurers to determine if they could save by purchasing more coverage from the fund -- and if they do, to pass the savings on to consumers.

And it rolled back rates for customers of the state-created Citizens Property Insurance, which is now Florida's largest insurer with more than 1.3 million policies in force. Citizens sells to those who can't buy private policies.

The bill also required regulators to deny rate increases if they would lead to excess profits.

'So far it looks like all of them were directionally sound,' Posey said. 'There are no big earthshaking changes on the horizon.'
Gov. Charlie Crist has long been after the industry, which he believes is gouging Florida consumers at a time they're enjoying record profits. State regulators subpoenaed Allstate Corp. (NYSE:ALL) executives to answer questions next week in Tallahassee.

With some large national companies like Allstate bailing out to reduce their liability, several startup Florida companies have filled the void.

'Citizens would be a heckuva lot larger than it is except for the dramatic expansion in the Florida domestics,' said Sam Miller, vice president of the Florida Insurance Council, a group that represents much of the industry. 'The Florida domestics have come in and offered folks an alternative. In some cases, insurance cheaper than if they went to Citizens.'
The committee is scheduled for a further update Feb . 22.

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