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(From Reinsurance)
An emergency rule forcing property insurers in Florida to freeze rates has been approved.
The measure, issued by Governor Charlie Crist and agreed by the state's Financial Services Commission in January, also prohibits insurers from non-renewals until the new legislation is in force.
The measure came within days of legislation doubling the size of the Florida Hurricane Catastrophe Fund (FHCF) to some $32bn. Insurers have until 1 June 2007 to submit new rates tables reflecting their estimated savings in light of the legislation.
Rating agency Standard & Poor's lowered its ratings on the FHCF's debt in the wake of the new reform bill.
Commentator VJ Dowling of Dowling & Partners Securities claimed the intervention in the state's catastrophe (re)insurance market will wipe out up to $2bn in ...