Office Of Insurance Regulation Approves Reduced USAA Homeowners Insurance Rate Increase
TALLAHASSEE (12/21/2006) The Florida Office of Insurance Regulation (Office) today approved a revised rate filing submitted by United Services Automobile Association (USAA) and USAA Casualty Insurance Company (USAA Casualty). The Office approved an overall rate increase of 16.3 percent for both companies combined.
USAA and USAA Casualty originally requested an average statewide increase of 40 percent for their homeowner insurance rates in Florida. Following a public hearing on September 26th and the issuance of a notice of intent to disapprove the filing, the company amended its filing and lowered the overall rate requests to 16.3 percent.
The Office's notice of intent to disapprove cited a number of areas where the requests were not adequately supported. These included USAA and USAA Casualty using an outdated private catastrophe model and failing to support an additional profit load of 10 percent.
"While the rate I approved is far less than what the company originally requested, I am fully aware that it is still going to have a significant impact on the pocketbooks of USAA's policyholders," said Insurance Commissioner Kevin McCarty. However, the filing has been rigorously reviewed, and it is fully justified.
Florida law requires that the Office hold public hearings on rate filings for statewide average increases exceeding 15 percent or for any reason the Office deems necessary.
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