Florida State insurance regulators under fire

How much savings have you got and how long would this last with your current outgoings?

Florida CFO Alex Sink called on insurance regulators to explain why several domestic property insurers are financially unstable, especially since hurricane season is around the corner.

“The vast majority of Florida homeowners rely on property insurance coverage to protect their homes, coverage that is especially important in these very difficult economic times,” Sink wrote in a letter today to Insurance Commissioner Kevin McCarty. “Florida’s homeowners and policyholders deserve nothing less than accurate information about the protection they’ve been paying for.”

As requested by Sink, McCarty will address the issue at a March 23 Florida Cabinet meeting.

At the same time, the Senate’s insurance committee will debate a bill Wednesday that would require the insurance commissioner be re-appointed every two years instead of having an indefinite term.

Some lawmakers have blamed insurers’ revenue shortfalls on Insurance Commissioner Kevin McCarty. McCarty’s office helped lower insurance rates by a statewide average of 16 percent a few years ago under state laws aimed at stabilizing rates after they doubled or tripled for some homeowners after the 2004 and 2005 hurricanes.

His office is monitoring the health of smaller insurers to ensure they can pay claims if a major hurricane strikes this year.