Question of the Week
Are there any legal restrictions on an insurer's ability to increase homeowner policy premiums? What about canceling homeowner policies?
The Florida Office of Insurance Regulation (OIR) must approve rate increases. Under insurance reforms enacted in House Bill 1A last year, insurers are prohibited from implementing rate increases that are not pre-approved by OIR. Previously, insurers could raise rates before receiving approval under a procedure known as "use and file". That procedure has been suspended until January 1, 2009. OIR recently blocked several insurers' rate increase requests.
Under current law, insurers are legally entitled to cancel policies so long as the cancellation is not discriminatory or motivated by some other improper purpose, such as selectively canceling policyholders that only buy homeowner policies and not other policies such as automobile and life insurance from the same insurer.
For legal questions concerning insurance, please contact Rob Friedman.
