Siding with domestic insurers, consumer groups and the state insurance regulator, Florida Gov. Charlie Crist today vetoed a bill designed to create competition among insurers in Florida. An aide in the Governor’s office stated that they had only received 862 calls this week regarding HB1171. Out of those 862 only 52 were against the bill.

Crist said the bill (HB1171) to remove state review of rates charged by large insurers would have created “significant and unpredictable” rate increases. He said the bill would give large insurance companies leeway to cherry pick and redline without protecting consumers. He also said it would harm consumers and investors of some 40 small domestic insurers that have sprouted up the past few years. The rates of these insurers would not have been deregulated.

Crist, who is running for the Senate, sided with Insurance Commissioner Kevin McCarty, who now regulates rates and who opposed the measure as unfair to smaller Florida insurers whose rates would remain regulated. Crist commended McCarty in his veto message.

But he disappointed national insurance company trade groups, the state Chamber of Commerce and fellow Republicans including state Rep. Bill Proctor and Sen. Michael Bennett, who supported the measure partly as a way for the state to retain large carriers including State Farm, which has announced plans to withdraw.

State Farm this week said it might be willing to reconsider its decision to leave the state if Crist approved the bill.
While proponents of HB1171 said it would help build a more competitive insurance marketplace, Crist said it would actually disrupt that effort.

The bill “allows certain insurers the ability to collect unregulated insurance premiums and then leave the marketplace with Florida’s hardworking families’ earnings,” Crist said in his statement.

Leviticus Reed who is running for Florida State House District 66 which includes part of Winter Haven where State Farm has a Headquarters stated “It’s unfortunate the Governor did not listen to the will of the people or his constituents. As a republican it is always good for business for to have competition. It’s unfortunate for the citizens of Florida and Polk County that the People’s Governor decided to Veto this important piece of legislation.”