Commissioner McCarty orders insurer to refund

Commissioner McCarty orders insurer to refund $43.2 million to customers

June 15, 2007
From staff reports

Florida Insurance Commissioner Kevin McCarty issued a Consent Order requiring United Property & Casualty Insurance Company to refund millions of dollars in unapproved homeowners’ insurance rate increases, the Office of Insurance Regulation has announced.

Last October, United began charging its customers higher insurance rates before the Florida Office of Insurance Regulation officially approved the rate increase, according to OIR. This was allowed under Florida law at that time and was referred to as a “use and file” rate increase.

However, the law also stated that if, after the Office reviewed the increase and determined that it was too high, the Office had the authority to require the company to return to policyholders the difference between the original rate charged and the rate ultimately approved by the Office.

In this case, the difference between the amount charged and the amount approved is $43,249,714, per OIR.

“Recent legislation in Florida prohibits property insurers from using use and file rates in the future, but United engaged in this action last year before it was banned,” McCarty said. “We will continue to aggressively pursue all refunds and credits that are due to Florida consumers.”

The Consent Order requires United to begin refunding immediately.

source: Office of Insurance Regulation