Florida consumer advocate opposes high insurance rate

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The Associated Press
1:18 PM EDT, August 12, 2008

TALLAHASSEE - Florida's top consumer advocate says that State Farm can't justify a 47 percent average property insurance rate increase it wants for 1 million customers.

Top company executives said Tuesday they need higher rates to cover future hurricanes and to make up for money they are now giving customers who add hurricane-resistant shutters.

But state insurance regulators grilled State Farm officials at a hearing over their numbers and how much profit the company's national parent is making.

Florida's insurance commissioner can deny the rate hike -- which is as high as 88 percent for some coastal counties.

One wouldn't have known there was a consumer advocate in the entire state after watching Floridians get hammered by business.