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Property Insurance Lawsuit

By Associated Press

Governor Charlie Crist is asking lawyers to build a case for a possible class-action lawsuit against property insurers. He claims the industry hasn't passed on savings to consumers as required by a new Florida law. Property Insurance Lawsuit

Published: Wed, December 19, 2007 - 3:41 pm

TALLAHASSEE, Fla. (AP) - Governor Charlie Crist is asking three
trial lawyers to build a case for a possible class-action lawsuit
against property insurers. He alleges that the industry hasn't
passed on savings to consumers as required by a new Florida law.
Crist has asked his general counsel and three prominent private
attorneys to review responses from recent insurance subpoenas to
see if January's law aimed at reducing rates for homeowners and
others is being followed.
With insurance rates spiraling upward after the busy 2004 and
2005 hurricane seasons, lawmakers in January expanded the state's
Hurricane Catastrophe Fund to allow insurers to get more of their
backup coverage there; it's cheaper than private policies. The law
says insurers must then pass on those savings to their customers.
Florida Insurance Council spokesman Sam Miller says Crist isn't
focusing in the right place and that the industry won't duck a
legal fight and predicts they would win.

(Copyright 2007 by The Associated Press. All Rights Reserved.)