Crist vetoes the so-called "State Farm" bill. GOP legislators vow override.

[madfloridian]

This is the bill that State Farm has been waiting for sort of anxiously, though they have not committed to stay or go. Charlie Crist vetoed it, and I guess a lot of folks will be doing some really fast looking for homeowners' insurance.

Crist vetoes “State Farm” bill

Gov. Charlie Crist has vetoed the “State Farm” bill, a bill that would have allowed large insurance companies to sell property insurance policies with unregulated rates.

In his veto message, Crist said the bill would benefit “a select group of property insurance companies” and allow them to “cherry-pick, or sell only to profitable policyholder risks” while “offloading their undesirable policyholders that are higher risk to their competitors and Citizens Property Insurance.”

He said the bill also contains no guarantees that the companies allowed to sell the non-regulated policies would stick around—they could still dump their policyholders and leave the state.

Some of the Republican legislators have vowed to override his veto.

'Disappointed' HB1171 sponsors hint at override of Crist veto

Rep. Bill Proctor and Sen. Mike Bennett, sponsors of the insurance rate deregulation bill (HB1171) vetoed earlier today by Gov. Charlie Crist, are among the many legislation supporters (AIF, Florida Chamber, to name some) who are issuing statements of "disappointment" in his decision.

But the joint statement issued by the lawmakers is significant in hinting at plans to seek a veto override. That would require a 2/3 vote by both chambers. During session the bill got yes votes from 85 percent of the Legislature.

This always seemed a strange bill to me. It allowed only a few companies to charge any rates they wish, yet it regulated others.

Florida deregulates rates of 15 insurance companies, keeps regulations for others.

TALLAHASSEE | A bill letting some large insurance companies set their own rates for property insurance policies is on its way to Gov. Charlie Crist to be signed into law. The Senate on Friday approved House Bill 1171, which is sometimes referred to as "The State Farm Bill" because it would help the large insurer that has said it plans to stop insuring property in Florida.

As many as 15 insurance companies could actually use "what-the-market-will-bear" rates, rather than having to go through a state agency to get approval for their rates. Some 30 smaller insurance companies will still be under rate regulation by the state and the state-run Citizens Property and Casualty Company, the insurer of last resort, will also have rate increase control.

The Republicans call this free enterprise, not sure what I call it. Unless all get to choose to raise rates, how is it free enterprise.

It was meant to keep State Farm here supposedly. There are approximately 800 agents and 4500 staffers with State Farm. It will be devastating if they leave.

[DireStrike]

1. I have no idea why crist would veto that bill.

What a weird guy he is.

[madfloridian]

2. When State Farm first threatened, Crist said "let them go."

He hates insurance companies. But we need them.

[DJ13]

4. Because unregulating insurance companies is bad for consumers?

I wouldnt have signed that kind of bill either.

[DireStrike]

5. Crist is a republican, isn't he?

I'm surprised to see him do anything that may even tangentially affect consumers in a good way.

[ixion]

3. it's cronyism, IMO

obviously a law that has been bought and paid for by State Farm, et. al..

[madfloridian]

6. State Farm going ahead with plans to pull out.

"State Farm officials in the Winter Haven Regional Office indicated Wednesday they are going ahead with the plan to pull its property insurance business out of the state.

“Obviously we are greatly disappointed along with the majority of legislators, who approved the Consumer Choice Bill and the majority of Floridians that the governor chose to veto the bill,’’ said Michal Connolly, State Farm spokesperson.

“We will proceed with those plans to discontinue Florida property lines. We are in active negotiations with the Office of Insurance Regulation on our timeline,’’ she said"

http://www.theledger.com/article/20090624/NEWS/906249937/1410?Title=Crist-Vetoes-State-Farm-Bill-

Not sure who the biggest bastards are.