Florida Office Of Insurance Regulation To Review Allstate Filing In July
Contact: Valerie Beynon, APR
Tallahassee – Florida Insurance Regulation Commissioner Kevin McCarty announced a proposed 28% rate filing by Allstate Floridian Insurance Company will be submitted to the Office in July.
The filing, being implemented today by Allstate under a statutory provision referred to as ‘use and file,' allows a company to implement a rate adjustment before it has been approved by the Florida Office of Insurance Regulation (Office). The company has up to 30 days to submit the filing for review. If the rate filing is disapproved or approved at a lower rate, the company must refund the premium difference to their policyholders.
"This filing undermines the recent legislation allowing policyholders the ability to provide input and comments at a public hearing prior to the implementation of a homeowner's rate increase," said Senator Rodolfo "Rudy" Garcia (R-Hialeah).
All rate filings submitted to the Office undergo a rigorous review process to ensure that a rate is not inadequate, unfairly discriminatory, or excessive. The Office is required to complete its review within 90 days.
If a filing fails one of the three criteria mentioned above and is denied, the company may request an administrative hearing or demand arbitration. Administrative hearings are before a judge from the Florida Department of Administrative Hearings whose decision is reviewable by the District Courts of Appeal. Arbitrations take place before an arbitration panel that consists of three certified members not affiliated with the regulator or insurer who must render a decision within 90 days of the request for arbitration. The decision of the arbitration panel is an irrefutable final decision that is not reviewable by the District Courts of Appeal even if the decision is not in accord with the law or facts.
"I want to reassure Florida policyholders that Allstate's filing will be thoroughly reviewed," said McCarty. "Furthermore, we will make sure that all the statutes are strictly enforced."