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Insurers slapped with late fees

Florida Insurance Commissioner Kevin McCarty on Monday fined insurers a total of $1.1-million for being late in filing affidavits related to how they handled hurricane claims.

By JEFF HARRINGTON
Published February 15, 2005

Insurers statewide were supposed to file affidavits saying they had made good-faith efforts to settle claims from hurricanes Charley, Frances, Ivan and Jeanne and Tropical Storm Bonnie. That effort would include paying additional living expenses, evaluating all damage, giving an initial assessment of loss and moving toward a claim settlement.

For Charley, Frances and Bonnie, the deadline was Nov. 22; for Ivan and Jeanne, the deadline was Dec. 8. For late-filing claims, insurers had until Jan. 3.

Insurers can be fined $2,500 for each day they were late filing.

"These companies were given an appropriate time period to submit the required affidavits," McCarty said. "These fines are representative of the importance of timely filing."

Fines ranged from as little as $2,500 for about 20 companies to as much as $150,000 for subsidiaries of Allstate Insurance. Other companies with larger fines included Encompass Floridan, $100,000; State National Insurance, $57,500; and West American Insurance Co., $52,500.

Allstate spokesman Ryan Priest said the insurer was reviewing the information.

--Jeff Harrington can be reached at harrington@sptimes.com or 813226-3407.

[Last modified February 15, 2005, 01:15:09]