jump to main menu jump to subject menu jump to content jump to footer
Press Release print image

Press Release

Office Issues Notice of Intent to Disapprove Praetorian Insurance Company's Rate Filing for Lender-Placed Insurance
Friday, August 10, 2012
Contact Info:

                      Jack McDermott                           Amy Bogner
                      850-413-2515                               850-413-2515
                      Jack.McDermott@floir.com          Amy.Bogner@floir.com


TALLAHASSEE, Fla. – Florida Insurance Commissioner Kevin McCarty today announced the Office of Insurance Regulation (Office) has issued a Notice of Intent to Disapprove the May 4, 2012 rate filing submitted by Praetorian Insurance Company (Praetorian).


 

Praetorian requested a proposed statewide decrease of 2.2 percent in the rate filing for its property collateral protection program, also known as “lender-placed” or “force-placed” insurance. This form of insurance is imposed by lenders on those who fail to secure homeowners’ insurance for their property as required by the mortgage or lending document.   
 
The Office’s indications demonstrated a reduction of 35-36% was required.
"The Praetorian filing was meticulously reviewed and all testimony given by company representatives at the July 3rd public hearing carefully considered," said Deputy Commissioner of Property and Casualty, Richard Koon. "Praetorian did not provide appropriate support for the rate decrease it requested."

The key reasons cited in the Notice of Intent to Disapprove broadly references the following as not being in compliance with Section 627.062, Florida Statutes: excessive rates, insufficient support for the loss trend selected, and indicated expenses and reinsurance cost reflecting allocation of costs to Florida were excessive relative to services rendered.
 
The decision to deny the rate decrease followed a public hearing in which a panel of representatives from the Office questioned various aspects of the rate filing. Video of the hearing and testimony provided by presenters are available on the Office’s website. Praetorian has 21 days, if it chooses, to petition the Office for an administrative hearing or Praetorian may submit a new filing to the Office.

As the President of the National Association of Insurance Commissioners (NAIC), Commissioner McCarty attended a hearing on lender-placed insurance in Atlanta, GA on August 9th to hear testimony from insurers and other interested parties about this issue.

 

Who:
What:
When:
Where:
Contact Info:

                      Jack McDermott                           Amy Bogner
                      850-413-2515                               850-413-2515
                      Jack.McDermott@floir.com          Amy.Bogner@floir.com

About the Florida Office of Insurance Regulation
The Florida Office of Insurance Regulation (Office) has primary responsibility for regulation, compliance and enforcement of statutes related to the business of insurance and the monitoring of industry markets.  For more information about the Office, please visit www.floir.com or follow us on Twitter @FLOIR_comm.

 

###