REGISTER TODAY TO GAIN ACCESS TO INDUSTRY LEADERS AND POLICY MAKERS

**FREE TRADE FAIR**

Specialty Agents of Florida has held an annual Trade Fair since 1989 where insurance companies and other vendors have exhibited their products to hundreds of agents in an endeavor to make agents knowledgeable, competitive and more efficient. A great networking environment is created and both seminars and Continuing Education classes are offered keeping agents informed of the latest products and legislation. The Association has developed a strong presence in Tallahassee and has attracted many prominent speakers from legislative leaders to the State CFO.

This year a big change, you asked for it and here it is no charge to enter the Trade Show.

We have also lowered the cost of the package for the convention and we have included the Trade Fair lunch in the SA spouse package.

CAN YOU GUESS THIS YEARS THEME ?????

Specialty Insurance Agents Association join us at our 2010 Convention and Trade Fair - DoubleTree Hotel at the Entrance to Universal Orlando

May 13th thru May 15th 2010.

Specialty Agents Convention and Trade Fair's offer unmatched opportunities for our members, agencies, companies and industry service providers to network with peers, learn about the latest market trends and gain access to industry leaders and policy makers.

The Annual Convention and Trade Fair, attended by over 500 participants; highlights innovative practices and business resources for our member's. At convention, SA engages participates in discussions about a range of industry and professional development issues. It also offers an interactive setting for information sharing and hands-on learning.

This upcoming Convention and Trade Fair will feature a chance to network one-on-one with political officials and Florida congressional leaders. SA will offer an expert panel discussion on legislative policy issues.

FLASH FLASH FLASH FLASH

Specialty Agents are working diligently to put together a very unique opportunity for those attending the Saturday luncheon.

Ralph Molten public speaker who has conducted over 3000 seminars has confirmed with us that he will be able to speak at our luncheon.

We have extended invitations to both the Democrat and Republican candidates for the state's CFO. This important cabinet position serves as the chief regulator for agents and agencies and significant oversight over the state's insurance commissioner and the Office of Insurance Regulation.

Democrat Loranne Ausley has already confirmed her attendance and we are awaiting word from the Republican candidate, Senate President Jeff Atwater.

This is a wonderful opportunity that shouldn't be missed.

Ralph Moten Marketing Director

With an extensive background in sales and management training and consulting, Ralph has worked with and within the insurance industry over 34 years. An accomplished public speaker, he has conducted in excess of 3000 seminars throughout the United States and Canada. Since joining American Southwest Insurance Managers, he has developed training and continuing education that is tailored specifically towards the non-standard automobile insurance industry. As a result, he has been a featured speaker at The National Agents Convention and The State Associations of both Texas and Florida. He also recently served on the board of directors for the Texas Agents Association. In addition, he has had numerous articles published in both state and national industry magazines.

Loranne Ausley Democrat Candidate for CFO

Loranne Ausley, a 6th-generation Floridian, is an attorney and former member of the Florida House of Representatives, where she represented Leon and Jefferson counties. Loranne has dedicated her career to the service of others, working in the administrations of some of Florida's most respected leaders, from Bob Graham to Lawton Chiles and Buddy MacKay.

First elected in 2000, Loranne served in the Florida House of Representatives through 2008. As someone who had never held elected office before, Loranne quickly established herself as an independent-minded leader unafraid to take on tough problems and find real solutions for everyday Floridians. Earning the respect of Republicans and Democrats alike, Loranne stood up against irresponsible budgets and "no-bid" contracts that wasted millions in tax dollars. And she continues to work tirelessly to ensure that Florida invests in its future and that our tax dollars are invested responsibly, with the highest level of
scrutiny and accountability.

Last year, Loranne was selected by CFO Alex Sink to serve as Chair of the Florida
Healthy Kids Corporation, a $300 million public-private institution that provides health
insurance for children in Florida. She also serves as a senior advisor to the Lawton Chiles
Foundation, a statewide organization that works to help families and improve the lives of
Florida's children.

Loranne has established herself as a leading voice for Florida's children and families. She
was the lead sponsor of legislation that created the Children and Youth Cabinet and, as a
Democrat, was then appointed to serve on the cabinet by two successive Republican
speakers. She has also served as Chair of Whole Child Leon since 2004.

After graduating from law school, Loranne spent two years working as an attorney in
Miami. She was then selected to serve in the U.S. Travel and Tourism Administration in
the Department of Commerce, and later worked in the Department of Housing and Urban
Development (HUD), serving as the Director of the National Rebuilding Institute, the
Business Development Director of the Empowerment Zones Program and Special
Advisor to HUD Secretary Andrew Cuomo. She returned to Florida in 1997 to serve as
Chief of Staff to then-Lieutenant Governor Buddy MacKay.

Loranne graduated from Randolph-Macon Woman's College with a degree in Economics
and earned her J.D. from the Washington & Lee University School of Law in Lexington,
Virginia.

She makes her home in Tallahassee, where she resides with her husband Bill Hollimon
and son, Will, age 7. Loranne is an avid marathon runner and triathlete, and an Ironman
finisher (Florida 2007).

Jeff Atwater Republican Candidate for CFO

Jeff Atwater is a fifth-generation Floridian shaped by a family long committed to serving their neighbors, their state and their country. "My values were shaped by my parents," says Atwater, "They were of that Greatest Generation where service, education and hard work meant everything. Their example inspires me every day."

His late father, John Stafford Atwater, was a World War II fighter pilot and accomplished FBI agent who later became police chief of the Village of North Palm Beach. His mother was a community volunteer and teacher.

"Like a lot of World War II vets, my dad wanted to visit Europe one last time. When we stood on the beach at Normandy, I felt one of the deep epiphanies of my life. Seeing a place so deeply marked by the sacrifice of American soldiers on D-Day made me realize I had an obligation to give more back to the state and nation that had given me so much. I knew it wouldn't be in the same context as my Dad's generation, but I knew I had to do more to contribute," says Atwater. "Understanding his service, and witnessing my mother's lifetime of volunteer efforts, was an inspiration."

Jeff earned an MBA from the University of Florida, and with more than 25 years of community banking experience, his background provides him with unique insights in banking, insurance, finance, fiscal responsibility and the burden that taxes and regulations place on small businesses and families.

He was elected to the Florida House of Representatives in 2000. With his high energy and collegiality, he quickly made his mark in the House. In 2002, he earned a seat in the Florida Senate after a tough campaign. Atwater's District 25 Senate seat encompasses parts of Broward and Palm Beach County. Jeff Atwater was elected Senate President in 2008.

During his tenure in the Florida Legislature, Jeff Atwater has been a strong, bipartisan leader on a broad range of issues. Jeff Atwater took on the big insurance companies to lower rates and get claims paid fully and timely following the devastation and destruction that came with one hurricane after another. Jeff Atwater relentlessly attacks fraud on every front - auto insurance fraud, property insurance fraud, securities fraud, Medicaid fraud - the warning is clear, if you are fraudulently doing business in Florida, Jeff Atwater is out to find you and bring you to justice.

Jeff Atwater helped spur Florida job growth by championing the Capital Investment Tax Credit Program. He led the Government Efficiency Committee, which worked to streamline Florida's bureaucracies and reduce government spending. As Chairman of the Finance and Tax Committee, Sen. Atwater delivered billions of dollars in tax relief to Florida's families and eliminated the intangibles tax on the savings and investments of Florida's senior citizens.

Jeff Atwater has been a leader on Everglades preservation and restoration, and helped fund and sustain Florida Forever, as well as key restoration programs for the Loxahatchee River, Lake Okeechobee, our inland rivers and waterways and ongoing beach nourishment efforts. "I have a firm commitment to balancing economic prosperity with the preservation of our special quality of life," says Atwater. "We can and should be a national example of environmental stewardship."

Jeff Atwater has dedicated the past eight years of public service to removing artificial burdens off the shoulders of Floridians by lowering their taxes, protecting key investments in early childhood education, raising school performance standards and building a system to foster a highly educated and highly motivated workforce. Jeff championed legislation to help migrant workers' families, local hospitals and trauma centers.

He has also worked to attract leading biomedical research institutions to Florida to pursue the breakthrough research in curing cancer, Alzheimer's and other diseases. "Florida can become a place where the cures of tomorrow emerge from the dedication and brilliance of great minds working right here in the Sunshine State."

Jeff Atwater's philosophy of balanced budgets, fiscal discipline and tax cuts has helped keep Florida's budget balanced even in a time of deep economic crisis. "When Florida families have had to tighten their belts, it's time for government to do the same," says Atwater. Under his leadership, the Senate cut a record amount of government spending.

In the 2009 Legislative session, Senate President Atwater stood firm against calls for new sales taxes, new property taxes and a new state income tax. "We were able to fight off the calls for sweeping new taxes. Government needs to be more accountable, more disciplined and more focused on real needs, rather than endless, automatic growth," said Atwater.

Jeff Atwater has been an active member of the community serving on several advisory boards such as United Way of Palm Beach County, Boy Scouts of America, 5-Star Magnet Program of Palm Beach Gardens High School and Roger Dean Stadium. He also served on the Board of Directors of the Northern Palm Beaches Chamber of Commerce and the Children's Home Society of Broward County.

Jeff Atwater lives in North Palm Beach with his wife, Carole, and their four children.

For our members and non-members convenience, co-sponsored Continuing Education (CE) courses are offered during the Annual Convention.

During Convention, additional networking activities and events are planned. Our Annual Golf tournament is great fun while giving our members an opportunity to interact to build lasting friendships and win prizes.

The Annual Convention and Trade Fair is held during the month of May on an annual basis. We are grateful to our generous sponsors who help to make this event a tremendous success year-after-year.
The Trade Fair is open to all and you asked for it so it is FREE that's right Free!!!!!!!

SA members are offered a discounted rate to attend the Convention.

C.E. and Breakout Sessions throughout both days

CITIZENS WILL BE AT OUR CONVENTION FRIDAY AND SATURDAY TEACHING THE MANDATORY ACP COURSE

The following classes are being offered at the 2010 Specialty Insurance Agents Convention May 13-15 2010 at the DoubleTree Hotel at the Entrance to Universal Orlando

The classes will be given on Friday the 14th and Saturday the 15th.

Reserve you seat in the class of your choice at curtistyre@gmail.com . We will acknowledge each reservation. Payment can be by credit card or check.

All CE classes are on a first come, first serve basis. All Specialty Insurance Agents Association members attend any class for free if they make a reservation and register for the convention which is $89.00. All non members cost is $30.00 per class unless they register for the convention which is only $139.00. Entry into classes without a reservation may be possible, but not guaranteed by Specialty Insurance Agents Association.

*Infinity agents can attend Infinity classes at no cost, but you must reserve a seat.
*The Citizens class charge is $30 to all agents and you must pre register and pay to reserve a seat. Citizen classes will be on Friday and Saturday in the afternoon.

Class # & date & time:

**Friday AM
Federal Flood Program Course #: 54145 Offering # 897149

05/14/2010 @ 9:00AM to 12:00PM

Underwriter 38737 897150

05/14/2010 @ 8:00AM to 12:00PM

**Friday PM
Florida Auto Insurance 54146 897151

05/14/010 @ 1:00PM to 5:00PM

Life Insurance Ethics 39534 897152

05/14/2010 @ 1:00PM to 5:00PM

**Saturday AM
Insurance Rules 11099 897153

05/15/2010 @ 8:30AM to 10:30AM

**Saturday PM
Florida Homeowners Insurance 54149 897155

05/15/2010 @ 2:30PM to 6:30PM

Whole Life Insurance 39533 897156

05/15/2010 @ 2:30PM to 6:30PM

Infinity will be having class thru the day on Friday and Saturday watch for updates

Citizen Required Classes
Classes are produced and taught by Citizens. The Specialty Insurance Agents Association is sponsoring the classes at their annual agents convention at the Double Tree Hotel Universal.

1- Cost of each class is $30 per agent.

2- All seats are to be reserved at  curtistyre@gmail.com .

3- Any questions about the class can be answered via email at curtistyre@gmail.com .

4- Friday class May 14 at 1:30PM.

5- Saturday class May 15 at 3:00PM

6- Continuing Education classes are being offered on the same dates, and are available to members and non members.

7- All seats in the Citizens classes are reserved. Walkups may be able to attend, but are not guaranteed.

8- All seats in the Continuing Education classes are reserved. Walkups may be able to attend, but are not guaranteed.

9- It is important to remember that class times are tightly controlled and no late arrivals are allowed into the class rooms.

TRADE FAIR TENTATIVE SCHEDULE
Thursday
May 13th 7:00 pm                   Exhibitors Cocktail Party

Friday-May 14th
8:00 am                     Golf Tournament

12:00 Noon              Golfer's Lunch

5:00 pm                     Industry Set-up

6:30 pm-9:30 pm     Welcome Cocktail Party

Saturday-May 15th

8:30 am                       Industry Meeting

10:00 am                     Exhibit Hall Opens

12:00 pm-1:30 pm      Lunch

1:30 pm-3:30 pm      Exhibit Hall

3:30 pm-4:30 pm       Exhibit Booth Breakdown

7:00 pm-10:00 pm     CASINO PARTY

THE THEME IS

DoubleTree Hotel at the Entrance to Universal Orlando

$99.00 per night at the DoubleTree Hotel Universal, Orlando, FL. Rates are good as long as the reservations are made by April 23, 2010. Call the Hotel to book your rooms at 800-327-2110 and use Group Code #SAT.

Why not make this a mini vacation and bring the family. Experience comfortable accommodations in an enchanting lakeside setting. With sweeping views of Orlando's theme parks, our high-rise hotel features oversized, beautifully-appointed guest rooms and suites, all sporting an array of contemporary leisure and business amenities. Reconnect with your family in spacious, kid-friendly suites and stay connected to the office with high-speed capability. Steps from the Universal Orlando Resort, the Doubletree Hotel is your ideal convention destination. The hotel is a short drive from Orlando's world-famous theme parks, shops, restaurants, golf courses, entertainment and sports venues and exciting attractions, such as Universal Studios, City Walk, Walt Disney World, SeaWorld Orlando, Discovery Cove and the Orange County Convention Center - putting a world of fun and excitement at your fingertips! For those who love to shop the Doubletree Hotel At The Entrance To Universal Orlando is less than 10 minutes from the Mall at Millenia, Festival Bay Mall and Prime Outlets.

Hotel cost $99.00 per night.

Package
Friday Night Reception, Saturday Trade Fair Lunch, Saturday Night Party and CE's included

$89.00 SA Member
$69.00 SA Spouse
$139.00 NON-Member

Golf Package (including Lunch)
OPEN TO ALL !!!!!!!!! $125.00

Purchase by item

CE Courses per Day
$30.00
Friday Night Reception

$30.00

Saturday Luncheon

$30.00
Saturday Casino Night Party

$40.00

CLICK HERE TO 2010 CONVENTION BROCHURE

CLICK HERE FOR 2010 CONVENTION REGISTRATION

CLICK HERE FOR 2010 CONVENTION GOLF REGISTRATION

HOTEL INFORMATION

Your registration does not include hotel reservations. You are responsible for making your own hotel accommodations. Your request must be received by April 23, 2010. After that date, the hotel will release all unreserved rooms for the sale to the public. Limited rooms at this price reserve early don't wait.
Universal DoubleTree

1-800-327-2110

(Be sure to mention Group Code # SAT to receive the discounted rate).

Hotel Rate $99.00per night,

plus taxes

CLICK HERE DOUBLETREE PICTURES

CLICK HERE FOR LOCATION

Delay of Unemployment Compensation Tax Hike Applauded by CFO Sink

Florida CFO Alex Sink on Wednesday released the following statement after Governor Crist signed legislation that will delay massive unemployment compensation tax increases on Florida businesses:

"In these tough economic times, the last thing our businesses could afford was this massive tax hike, and it was important to quickly act to delay this increase," said CFO Sink. "By postponing the tax increase that both the Governor and Legislature supported last year, our state avoided what could have been a crippling blow to Florida businesses, especially many of our small businesses."

ICA Sean Shaw Discusses the Effect of Automobile Recalls on Consumers' Insurance Coverage

Sean Shaw, Insurance Consumer Advocate

The recent congressional hearings regarding the Toyota recall have led many consumers to have questions regarding their automobile coverage in the event of a recall. Automobile recalls happen quite frequently, but not all recalls receive the notoriety and media attention the current Toyota recall is experiencing. Other companies that have issued recalls include Infiniti, Nissan, BMW, Honda, and Acura. Recalls often involve vehicles ranging from older models to current year models.

Consumers should remain alert for an announcement of any recalls affecting their model. There are many internet sites where consumers can check if a recall has been issued for their vehicle. The Office of the Insurance Consumer Advocate recommends visiting the National Highway Traffic Safety Administration in the U.S. Department of Transportation website at
http://www-odi.nhtsa.dot.gov/recalls/recallsearch.cfm. There, consumers can enter their vehicle make, model, and identification number and receive up-to-date recall information.

Consumers who own cars that have been recalled should keep the following facts in mind:

If a recalled part is determined to be the cause of damages or injuries, the insurance company will pay the claim without regard to the recalled part. Auto policy providers have indicated that accidents caused by a recalled part will be included in the vehicle's liability or collision coverage.
Insurance companies often seek reimbursement from the manufacturer for a claim that is the result of a manufacturing defect. Should the manufacturer pay the insurance provider, the consumer may get a fraction, if not all, of the deductible returned.
Many auto insurance companies are currently in the process of sending notices to their clients confirming that they will receive the necessary coverage protection.

In response to questions regarding whether or not a recall will result in premium increases for recalled cars, a spokesman for Property Casualty Insurers Association (PCIA) stated that many factors determine premium rates and a recall may not be sufficient to trigger a premium increase.

In addition to other woes brought on by the recall, auto insurance companies that experience recalls may be charged higher premiums from warranty insurers; in turn, these costs may be passed on to consumers.

If consumers have questions regarding their auto coverage, they should first contact their agent or automobile insurer.

Consumers who have further questions regarding auto insurance coverage should contact the Division of Consumer Services within the Department of Financial Services online at http://www.myfloridacfo.com/Consumers/ or by phone at 1-877-MY-FL-CFO (1-877-693-5236), toll-free in Florida, and (850) 413-3089 from out of state.

Fraudsters Ordered to Pay Nearly $1 Million in Restitution in Insurance Fraud Case

Orlando clinic operators paid patients to stage accidents and fake injuries

The Department of Financial Services' Division of Insurance Fraud (DIF) announced this week that four men who operated an insurance fraud scheme in Orlando have been ordered to pay nearly $1 million in restitution. The men were arrested in 2008 after undercover DIF investigators videotaped the four conspirators participating in insurance fraud and patient brokering at Lancaster Physical Therapy Clinic. The final plea agreement was reached last week.

In 2007, clinic owner Yefim Vizeltir was recorded asking undercover officers to recruit their friends to stage accidents and file for false injuries at the clinic. In exchange, he would pay them $1,500 for each person delivered to the clinic. The officers agreed and began receiving illegal payments from a money laundered account traced to a bank in New York.

Following the conspirators' 2008 arrests, a case was presented to Office of Statewide Prosecution alleging a money laundering conspiracy which exceeded $100,000 dollars per month for over a year.

The Office of Statewide Prosecution charged the case and negotiated the following plea agreements:

Josyf Moyse, owner: On March 3, 2010, Moyse pled guilty to Insurance Fraud and was ordered to pay over $193,000 in restitution. He was sentenced to five years probation to be carried out in New York State in lieu of jail time due to severe illness.
Yefim Vizeltir, owner: On November 18, 2009, Vizeltir pled guilty to one count Conspiracy to Commit Insurance Fraud, one count Insurance Fraud and three counts of Patient Brokering, and was ordered to pay nearly $800,000 in restitution.
Daniel Schlueb, Chiropractor: On April 21, 2009, Schleub pled guilty to one count of Insurance Fraud and was placed on probation for one year. Schlueb was ordered to pay $4,000 in prosecution costs.
Chris Johns, office manager: On November 23, 2009, Johns pled guilty to two counts Patient Brokering and was placed on eight years probation. Johns was ordered to pay over $9,000 for prosecution and investigative costs.

CFO Sink's Division of Insurance Fraud made over 830 insurance fraud-related arrests in the last fiscal year, and investigates various forms of insurance fraud relating to health, life, auto, property and workers' compensation insurance policies. Depending on the estimated loss amount, the Department of Financial Services will pay up to $25,000 for information directly leading to an arrest and conviction. Anyone with information about this or any other suspected insurance fraud is asked to call CFO Sink's Fraud Fighters Hotline at 1-800-378-0445 or visit www.MyFloridaCFO.com/fraud.

CFO Sink Sends Lake County Insurance Claims Adjuster and Four Pasco County Co-Conspirators to Jail

Suspects accused of stealing more than $240K in insurance fraud scam

Florida CFO Alex Sink on Monday announced the arrests of five individuals involved in defrauding Zurich Insurance Group, including Zurich claims adjuster Donald Alfred Toohey, III, 30, by creating multiple falsified and fabricated claims in excess of $240,000. The arrests are the result of an investigation by CFO Sink's Division of Insurance Fraud (DIF). If convicted, each faces up to 15 years in prison.

"Insurance fraud isn't just a crime against one company, it's a crime against every Floridian," said CFO Sink. "I'm committed to ensuring that Floridians aren't footing the bill for insurance scams like this with higher premiums."

CFO Sink's detectives received an anonymous tip in September 2009 of possible fraudulent activity by Toohey, and the resulting investigation uncovered that Toohey as well as four more individuals were committing illegal acts. Each participant received payments from 26 different claims totaling over $240,000 from August 2004 through June 2009 in various counties throughout the state.

The investigation revealed that Toohey used his position as a claims adjuster to create fictitious claims for monetary gain for himself as well as Scott J. Kincaid, 44, Brian Frederick Kneifer, 26, Anthony Michal Kneifer, 26, and Tricia Ann Allen, 27. The scam was initiated by Toohey, who had access to the paperwork to file the fraudulent insurance claims. Toohey would create a fraudulent file and claim on of each of the participants, showing reason for reimbursement to the individual for injuries occurring either to the person or their automobile during a car accident. The participant would then receive a check in the mail with the understanding that a portion would be paid to Toohey.

The initial investigation into Toohey led DIF Detective Steve Firestone to further review the activities and implications of the acts committed by the five individuals, confirming three or more checks were received and cashed by each of these individuals with thefts ranging from $8,800 to over $67,000. With cooperation by the Zurich Insurance Group, it has been determined none of the five individuals were insured with Zurich at the time of payment, or at any other time, and payment audits confirmed the payouts were fraudulent.

All five participants have been charged with Grand Theft under FS 812.014(1) (b) (2) and Conspiracy FS 777.04(3) and were booked into the Pasco County Jail.

Consumer Corner: COBRA and Mini-COBRA Amended

President Obama signed federal legislation on Tuesday, March 2, that extends the COBRA/mini-COBRA premium reduction eligibility date from February 28, 2010, until March 31, 2010. This allows individuals who are involuntarily terminated during the month of March the opportunity to take advantage of the 15-month premium reduction.

The basic eligibility requirements and benefits for the COBRA premium reduction are as follows:

The COBRA premium reduction eligibility period is from September 1, 2008, through March 31, 2010. The mini-COBRA premium reduction eligibility time period is February 17, 2009, until March 31, 2010.
The maximum period for receiving the reduction is 15 months.
Those who are eligible for other group health coverage (such as a spouse's plan) or Medicare are not eligible for the premium reduction.
There is NO premium reduction for periods of coverage that began prior to March 1, 2009.
The qualified beneficiary and/or dependents, if applicable, will pay 35% of the COBRA premium with the employer subsidizing the remaining 65%. The premium includes 2% the administrative fee.
The qualified beneficiary and/or dependents, if applicable, will pay 35% of the mini-COBRA premium with the insurer or HMO subsidizing the remaining 65%. The premium includes the 15% administrative fee.

For complete up-to-date information, consumers should log on to the United States Department of Labor website at http://www.dol.gov/COBRA.

Property Insurance Deregulation: A choice too costly for consumers

By: Sean M. Shaw Esq., Florida Insurance Consumer Advocate
Brad Ashwell, Florida Public Interest Research Group, Democracy & Consumer Advocate
Bill Newton, Florida Consumer Action Network, Executive Director

This has been a tough year for property insurance consumers in the State of Florida. 2009 brought Floridians problems from harmful Chinese Drywall to the threatened exit of State Farm. Now, two of Florida's legislators, Senator Mike Bennett and Representative Bill Proctor, have proposed a bill to deregulate residential property insurance rates. Their legislation, HB 447 and SB 876, would allow residential property insurers to set premium rates without the approval of the Office of Insurance Regulation. They call it "consumer choice", but we believe it will provide anything but real choice for Florida's consumers.

Senate Bill 876 and House Bill 447 claim to give consumers "greater choice" by allowing property insurance companies to charge unregulated rates to their residential customers. The architects of this legislation believe that these unregulated rates will attract more companies to the state, giving insurance consumers more selection. The proposed legislation also stipulates that no private insurer can be charged an assessment until of all Citizens' policyholders have been charged a 15% assessment.

While these provisions are similar to the "consumer choice" bill introduced in the 2009 legislative session, unlike the previous bill, this legislation would allow all authorized property insurers in the state to charge any rate, not just a select few.

Citizen Overload

Imagine walking into your insurance agent's office. Your agent places three policies in front of you. Two are policies with private insurers and one is a Citizens policy. The two private insurer's policies are close in price, but the Citizens' policy is significantly cheaper, for essentially the same coverage. Which would most consumers choose? The answer is obvious - the cheaper policy, especially in these tough economic times.

Senator Bennett has stated that he filed this bill in response the perception that Citizens' legislatively set rates are driving private property insurers from Florida. Unfortunately, this bill does nothing to address Citizens' rates, either through deregulation of Citizens or through any other mechanism. If this legislation is passed, these provisions would only further exacerbate the growth of Citizens. Allowing property insurers to charge unregulated rates would only serve to increase the divide between Citizens' rates and what other companies can charge. If Senator Bennett and Representative Proctor are truly concerned about Citizens' rates, it would make more sense for their legislation to directly address their concerns.

Instead, if passed, this legislation will actually increase the size and exposure of Citizens. Because Citizens is backed by all Florida's taxpayers, many legislators have been looking to limit the state's exposure by reducing the size of Citizens. However, if property insurance companies are allowed to raise rates to wherever they wish, Citizens is quite likely to see an increase in policyholders.

Finally, this proposal would allow all insurance companies to "cherry pick" their customers, leaving many Floridians with nowhere else to turn but Citizens. For example, South Floridians who live near the coast would likely see the largest increases in premiums, while Floridians who live more inland and northern counties would see more favorable rates. And when a hurricane hits, not only would Citizens have the majority of the losses, but their policyholders would also be required to pay that 15% assessment before any private insurance money was due.

Does Deregulation Work

Proponents of deregulation claim that deregulation will bring new insurers to the market. However, no insurer has said publicly that they would enter Florida if the property insurance market was deregulated.

Deregulation also strips out a huge layer of consumer protection for all Floridians. Because the average consumer does not have the resources or information to determine when a rate is excessive, the opportunity for the company to abuse consumers exists. However, the State of Florida has the time, knowledge, and resources to judge the fairness of rates contained in insurance policies. The state can provide a warranty of fairness to the insurance consumers of Florida. Under current regulations the state protects consumers against excessive insurance rates. Deregulation would eliminate this protection for our citizens, protection that is desperately needed in these tough economic times.

Another argument for deregulation is that it will end the subsidization of coastal properties by inland property owners. However, significant state revenues are generated from these coastal areas and flow inland. Any current subsidization helps the overall housing market in Florida, which many people believe to be instrumental to helping Florida's economy rebound. The issue of coastal property insurance rate subsidies has been successfully addressed in other states, such as Mississippi, and the answer has never been deregulation.

Lastly, history has shown the problems deregulation can bring to Florida's insurance marketplace. In, 1968, Florida politicians attempted to deregulate the auto insurance market based on many of the same arguments that are being submitted by Senator Bennett and Representative Proctor. However, after significant rate increases (some as high as 23%) the citizens of Florida clearly said that deregulation of auto insurance was not a good idea. The legislation was repealed and the auto insurance market has remained regulated since 1971. We should learn from our mistake with auto insurance and not deregulate the property insurance market.

Our View

The sponsors of this legislation mistakenly call this bill the "Consumer Choice" insurance bill. However, the only choice that consumers are given is between higher premiums (based on recent rate filing requests anywhere for 25% to 50%) or a move to Citizens' property insurance.

As consumer advocates, it is our charge to look out for one thing - what is the best interest of our state's consumers. Truly, we are always encouraged when any legislator or industry group proposes an idea that seeks to improve the insurance industry in Florida.

However, this bill does not accomplish any improvement - instead it would significantly hurt Florida's consumers. Deregulation of our property insurance industry rates would allow insurance companies to abuse consumers through excessive rate increases and would hurt Florida financially by overburdening Citizens. We also do not see any hard evidence this bill can achieve its stated goal of attracting new companies to the state.

We call on members of the Florida Legislature to vote against the proposed deregulation bill. If this legislation should pass, we urge Governor Crist to again veto this type of proposal. We encourage the legislature to choose what's in the best interest of the citizens of Florida.