Florida Office Of Insurance Regulation Disapproves Cincinnati Homeowners’ Rate Request
Tallahassee –Florida Insurance Commissioner Kevin McCarty announced that the Office has disapproved a recent Homeowners rate filing from Cincinnati Indemnity Company and Cincinnati Insurance Company requesting an average statewide rate increase of 36.7%. The company may request an administrative hearing, arbitration or modify its current filing.
The company offices are located in Fairfield, Ohio. Cincinnati Indemnity Company and Cincinnati Insurance Company have approximately 13,000 homeowners policies in force. The companies' financial strength is rated A++ (Superior) by A.M. Best.
As required by Section 627.0629(7), Florida Statutes, a public hearing was held in Sarasota June 22 where Cincinnati's policyholders and other interested parties were given the opportunity to participate in the filing review process.
The filing was disapproved under Florida Statute 627.062, which specifies that 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 by law to complete its review of the rate filing within 90 days.
"After a thorough review and analysis by our actuarial staff, the filing failed to justify an increase and was deficient in several areas," McCarty said. "We also appreciate the Consumer Advocate's independent review and input into the rate filing."
McCarty, the Commissioner of Insurance Regulation, is appointed by the Financial Services Commission, a body comprised of the Governor and the Cabinet. The Office of Insurance Regulation is responsible for regulation of all insurance companies and risk-bearing entities, including licensing, rates, policy forms, market investigations and financial oversight.