Consumer groups urge veto of

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and claim HB 1171 would pit the larges t insurers againstthe smallest, which would be hamstruny by regulation. But, during a Wednesdagy news conference, Brad Ashwell, legislative advocate for Floridz PIRG, said the answer is not deregulationj ofall companies. He said that rates need to more closelt conform toreal risk, and that keepinbg rates artificially low, as did for several is not the answer. Walte r Dartland, the consumer federation’s executivde director, emphasized that partial or complete deregulation is notthe either. He maintains that the state’s rate revieew process has been a valuable consumere protection tool against arbitraryrate increases.
A practical solutioh would need to involve a deeper poolof insurers, specifically smaller ones, and highe r rates that are regulated, Ashwell said. “Floridsa is in the midst of aneconomid crisis, and our residents cannot afford to be caughf in a volatile insurance market faced with erratidc rate increases," he But, the insured also have to be realistiv about the impact a hurricane would have on Floridians will not be able to avoixd assessments. “It’s just a questiojn of how big the assessmenwill be,” Ashwell said.
The bill awaitingy Crist’s signature would alloa major carriers, such as State which earlier this year said it wouldleaves Florida, to raise rates unchecked without a guarantee that they wouldr continue writing policies in the state. Dartland said his organization would encourage State Farm and otheras to poach the customers with theleast risk, leaving thosde with the most for companies that are leasrt capable of paying out in the event of a “This doesn’t help anybody except the few companieas that are involved,” he argued. , one of the bill’ds sponsors, Sen.
Michael Bennett, R-Bradenton, asked Insurance Commissioner Kevinm McCarty to resign after McCarty requested that Cris vetothe bill. During a news conference earlier inthe day, the governodr hinted he might veto the bill.