Crist vetoes insurance reform act - New Mexico Business Weekly:

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The so-called Consumer Choice act was primarily aimefd atState Farm, the state’s largest private property insurer, which announced in January that it woulde withdraw from the Florida market. State Farm never said whether the right to pick customers and set rates on its own woulcd changeits decision. In an letter to Secretary of State Kurt Browning that accompaniedthe veto, Crist said the act, knowbn as House Bill 1171, would reversw a trend of lowered rates. “This will likely result in significantt and unprecedented rate increases during difficulteconomic times, people simply can’tr afford,” Crist said.
Crist said that if the act becames law, it would red line high-risk parts of the statw and underminemarketplace competition. Proponents of the bill have arguer that Florida needs big insurers with pockets deep enougy to cover costs associated withlarge Insurers, including State Farm, have said the Floridqa regulators won’t allow rate increases to cover theid risks, making coverage in the hurricane-prone state an unsoun d risk.