logo
Florida insurance regulators question oversight by office run by newly elected U.S. rep

Florida insurance regulators question oversight by office run by newly elected U.S. rep

Miami Herald04-04-2025
In an extraordinary criticism of one state agency by another, Florida's Office of Insurance Regulation told legislators that a department led by then-Chief Financial Officer Jimmy Patronis may have buried thousands of complaints Floridians made against property insurance companies.
Patronis' office referred 5.2% of the property insurance complaints it received over a five-year period to regulators for possible violations of state law, indicating 'potential underreporting,' Florida's Office of Insurance Regulation wrote in newly disclosed memos obtained by the Herald/Times.
That low referral rate made it harder for regulators to police the industry, the memos said. Consumers lodged more than 52,000 complaints against property insurers during the period.
The memos, given to legislative leaders, were produced as part of a tug-of-war between two agencies and a bid to consolidate insurance oversight under one roof. Florida is the only state that splits insurance regulation between two agencies.
The consolidation push began before this year's legislative session and after Patronis announced he was leaving to run for Congress. He won a special election to the Panhandle seat Tuesday after serving seven years as CFO.
'This bifurcation has hindered the state's ability to adequately protect consumers,' one of the memos states.
The memos questioned the training of Patronis' employees, said that his office was missing complaints against pharmacy benefit managers and argued that consolidation would allow the state to better police insurers' use of affiliate companies.
House and Senate leaders haven't endorsed the idea of consolidating insurance oversight, and it's not in legislation introduced this session. Spokespeople for House Speaker Daniel Perez, R-Miami, and Ben Albritton, R-Wauchula, said they were open to the idea, however.
On one side is the Office of Insurance Regulation. It handles insurers' rate filings, polices their conduct and determines when companies are insolvent. It's led by the state's insurance commissioner, Mike Yaworsky, who is appointed by the governor and Cabinet.
On the other side is the Department of Financial Services. It oversees consumer insurance complaints, regulates insurance agents and takes over insolvent insurers. It's usually led by the elected chief financial officer, but that position is now vacant.
The split dates to 2003, and it has rankled insurance commissioners ever since.
Yaworsky for one is open to reform. He said he wanted 'a vigorous defense of consumers when they're approaching their state with an insurance problem.'
'I'm hoping that if there is discussion around this, whatever the outcome is, it leads to a really robust framework around ensuring that consumers are protected,' Yaworsky told the Herald/Times.
Yaworsky spelled out in the memos the downsides of splitting regulation, saying his office can see what insurers are doing but often doesn't hear about consumer complaints.
'It has hindered the state's ability to evaluate and regulate the entire insurance market,' the memos state.
Yaworsky has stepped up enforcement of the industry since DeSantis nominated him for the job in 2023. He's ordered insurers to stop gaming their rate increase requests to avoid public hearings, stopped them from hiring executives of failed companies and asked lawmakers for more enforcement powers.
Yaworsky's memos questioned the quality of the complaints his office was being sent by the Department of Financial Services.
The department is supposed to send complaints where companies might have violated state law. But of the complaints Yaworsky's office received, nearly half didn't name any violations, the memos said.
Such a low rate was a 'likely indicator' that staff in Patronis' office is 'not adequately trained to identify violations,' the memos state.
The 'issue is made even more stark,' the memos state, when looking at complaints pharmacists have made about pharmacy benefit managers, health care middlemen that have been blamed for skyrocketing drug prices.
In 2024, pharmacists made 142 complaints to Patronis' department about pharmacy benefit managers. The department closed 34 and referred 11 to the Office of Insurance Regulation. It's not clear what happened with the rest. Meanwhile, the memos asserted, the department wasn't capturing complaints made by patients because the department wasn't coding them properly.
Consolidating regulation would also give the Office of Insurance Regulation more oversight of insurers' affiliate companies, the office wrote. A 2022 analysis produced by the office and revealed by the Herald/Times last month found that insurance companies claimed to lose money between 2017 and 2019 while their affiliates made billions.
The Department of Financial Services did not respond to questions by the Herald/Times about the memos.
One reason why so few complaints are being forwarded to the Office of Insurance Regulation could be because Patronis' department doesn't investigate complaints if the homeowner has also sued their insurer. That fact isn't mentioned in the office's memos.
Patronis historically took a light touch to the insurance industry.
He did not come out in favor of Yaworsky fining an insurance company $1 million for Hurricane Ian violations last year. Patronis also pushed to seal records that would shed light about why insurance companies go out of business.
His office was supposed to investigate claims by insurance adjusters who said the companies they worked for manipulated their estimates to lowball homeowners. But Patronis' office never brought charges against the companies and never released the records about his office's investigations.
Two Republican state senators vying to replace Patronis said they saw the memos but had different conclusions.
Sen. Blaise Ingoglia, R-Spring Hill, called the lack of information-sharing 'very concerning.'
'By withholding some of that information, we're not doing what we are probably supposed to be doing,' he said. 'It's a disservice to the people who are making those complaints.'
Ingoglia said he didn't know enough to say whether insurance regulation should be consolidated.
Sen. Joe Gruters, R-Sarasota, said he spoke to Patronis about the idea, who 'thought it was a mistake, really, on numerous fronts.'
He said splitting regulation resulted in a 'checks and balances' of oversight.
He said the Office of Insurance Regulation was making a 'power move' by trying to assume control. He said the office already had access to the state's complaint data. (Yaworsky said the data is 'problematic' and makes it 'difficult' for his office to find violations of law.)
If anything, insurance regulation should be solely under the elected chief financial officer so 'that person can be held accountable,' Gruters said.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Obama leading Democratic redistricting fundraiser in Martha's Vineyard
Obama leading Democratic redistricting fundraiser in Martha's Vineyard

The Hill

time32 minutes ago

  • The Hill

Obama leading Democratic redistricting fundraiser in Martha's Vineyard

Former President Obama is set to appear at a Democratic redistricting group's fundraiser next month in Martha's Vineyard, as the party looks to go toe-to-toe with Republicans' redistricting push in Texas. Obama is named as a special guest on an invitation for an event hosted by former Attorney General Eric Holder, the chairman of the National Democratic Redistricting Committee (NDRC), and Rep. Nancy Pelosi (D-Calif.), according to an invitation obtained by The Hill and first reported by Politico. The invitation says the dinner and discussion will benefit the NDRC and affiliated groups on Aug. 19. Democrats are pushing for blue states to consider redrawing their House maps to offset similar efforts taking place in Texas, where President Trump has said he's looking to pick up five House seats. Ohio is also redrawing its maps, which is required this year because a previous plan didn't pass with bipartisan support in 2022. Republicans could make the maps more favorable to their party as they seek to win back seats held by Reps. Marcy Kaptur (D-Ohio) and Emilia Sykes (D-Ohio). California Gov. Gavin Newsom (D) is the only Democratic governor who so far has signaled he's open to redrawing his state's map to help his party. California uses an independent redistricting commission, however, and would have to overcome some hurdles in order for Democrats to do mid-cycle redistricting in the state. Other Democratic-led states such as New York or New Jersey that could see similar pushes, also have redistricting commissions and would likely need to have their state constitutions amended in order for Democrats to successfully redraw maps. The redistricting tit-for-tat could be previewing a tumultuous midterm cycle. Republicans are already bracing for an unfavorable political environment next year given the historic trends that run against the president's party in midterm cycles.

Mike Khouw on a hedging strategy with the market at record highs and some threats emerging
Mike Khouw on a hedging strategy with the market at record highs and some threats emerging

CNBC

time33 minutes ago

  • CNBC

Mike Khouw on a hedging strategy with the market at record highs and some threats emerging

Slightly over a year ago, CNN hosted a debate between then-President Joe Biden and Former (and current) President Donald Trump. President Biden's approval rating heading into the debate was already low. The Pew Research Center's survey in April of 2024 showed that the number of U.S. adults who disapproved of his performance as President vastly outnumbered those who approved. Times/Siena polls suggested Trump led Biden by about 3% among likely voters ahead of the debate, and that lead widened to 6% after Biden's poor peformance and ultimately, he bowed to pressure from his own party to withdraw from the race. It was at this point, when the prospect of Trump returning to the White House went from possibility to probability, that economists and investors really began to weigh in on the implications of "Trumponomics" 2.0. Much of what was published at the time expressed significant concerns about some of his proposals, so much so that on July 11th, 2024, the Economist published an opinion piece entitled, "Trumponomics would not be as bad as most expect." The authors taking a fairly balanced view said, "Mr. Trump and his advisers have many rotten ideas. They also have some decent ones." This week marked two milestones. It has been six months since Mr. Trump was once again sworn in as president of the United States, and the S & P 500 just hit another all-time high. We are also kicking off the first earnings season, where publicly traded companies will report a full quarter's worth of operating results under the new administration. .SPX 1Y mountain S & P 500 , 1 year During this period, the markets experienced historic volatility induced by policy proposals. However, did the chaos we observed in stock prices reflect chaos in corporate operating results? Early indications from both economic data and the ~10% of the Russell 3000 that have reported so far since July 1st are actually pretty good. A higher percentage of companies that have reported since July 1st of this year gave a positive revenue surprise, a smaller percentage reported a negative earnings surprise, the percentage above consensus for both revenues and earnings is higher this year, and earnings have averaged 10.9% growth YoY, well above long-term growth rates. So was The Economist right? Here are some points to consider. While tariff threats have been substantial, we still don't know where exactly that will land. The government has benefited from additional tariff revenue, and some price increases are being seen. One potential reason revenues and earnings could rise is that businesses are pricing products in anticipation of tariffs, but due to delays, the impact has not yet been fully felt. Economists warned of another inflationary impact. Cracking down on illegal immigration would increase labor costs. So far, this too does not appear to be creating huge disruptions, but while border crossings have slowed to a trickle, deportations, while causing a bit of a political firestorm in some cities, have a real impact that is muted because, by its own reckoning, the White House claims 100,000 deportations since January 20th. At that pace, the administration won't be able to deport even 10% of those who entered the country illegally under Biden, and because they are (supposedly) focusing on criminals, those deportations are not likely to impact wages paid at legitimate industries (yet). While the White House has been highly critical of Fed rate policy generally and Chairman Jerome Powell specifically, and the next appointee is likely to be more aligned with Trump's rate wishes, FOMC rate policy is still by committee. History has not been kind to political interference in central banking activities, and it's likely that even if the new chairman adopts a more dovish stance, the FOMC will remember the mistakes the Fed made during the Arthur Burns era. If they do vote to cut rates, I believe it will be based on inflation and employment data, not White House rhetoric. Deficits remain a complete disaster. Where in the past the predominant parties would at least pay lip service by either demanding higher taxes or lower spending, that appears to be out the window in DC these days. Valuations in several sectors are well above long-term averages relative to the market and to their own sector history. The most notable exception is healthcare. Time to hedge? Any or all of these factors could reemerge as a threat to equities, and while there are still several weeks until Labor Day, it's worth remembering that September and October are months that have seen significant volatility in past years. With the CBOE Volatility Index (VIX) just over 15 as I write this, below the 10-year average of 18.6 and in the 39th percentile, now might be a good time to consider adding some hedges, either to high-flying constituents of one's portfolio via put spreads or, more generally, by purchasing some relatively low cost put spreads on an equity market proxy, such as SPDR S & P 500 ETF Trust (SPY). For example, the Sep 30th, month-ending 630/600 put spread, which expires in 67 days costs less than 1% of the underlying. DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.

5 things to know for July 24: Signal controversy, Epstein files, Birthright citizenship, Thailand-Cambodia, Ohio ‘ambush'
5 things to know for July 24: Signal controversy, Epstein files, Birthright citizenship, Thailand-Cambodia, Ohio ‘ambush'

CNN

time33 minutes ago

  • CNN

5 things to know for July 24: Signal controversy, Epstein files, Birthright citizenship, Thailand-Cambodia, Ohio ‘ambush'

In a landmark advisory opinion issued on Wednesday, the world's highest court said polluting countries may be in breach of international law if they do not protect the planet from the 'existential threat' posed by climate change. It was the first time the International Court of Justice had formally addressed the climate crisis. Here's what else you need to know to get up to speed and on with your day. The national security scandal involving Defense Secretary Pete Hegseth and other top officials has taken a new turn. In March, the officials discussed a US military attack on Houthi militants in Yemen in a group chat on Signal — a conversation that inadvertently included a journalist. Now, the Pentagon's inspector general has received evidence that the military plans shared from Hegseth's Signal account were taken from a US Central Command document that was marked classified at the time, two people familiar with the ongoing review said. The IG's possession of the file appears to further undercut Hegseth's claims that nothing classified was shared on the publicly available messaging app. When Attorney General Pam Bondi briefed President Donald Trump in May on the Justice Department's review of the Jeffrey Epstein case, she informed him that his name appeared in the files, sources familiar with the discussion told CNN. Bondi also said that although the names of several other high-profile figures were mentioned, the investigators did not find a client list or evidence refuting that Epstein died by suicide. The revelations about the meeting contradict Trump's more recent denials that he was told he was in the files. On Wednesday, a House Oversight subcommittee voted to subpoena the DOJ's files about the disgraced financier and accused sex trafficker. The motion passed, 8-2, with three of the panel's Republicans joining with Democrats. House Oversight Chair James Comer also subpoenaed Epstein's former associate Ghislaine Maxwell for a deposition. A federal appeals court ruled on Wednesday that President Trump's executive order seeking to end birthright citizenship was unconstitutional. Birthright citizenship is a nearly 160-year-old practice guaranteed by the 14th Amendment of the Constitution, which grants citizenship to anyone born on American soil. The 2-1 ruling from the 9th US Circuit Court of Appeals also upheld a nationwide block against the controversial order. In response, the Trump administration may ask the full 9th Circuit to review the case, or it could appeal the matter straight to the US Supreme Court. Deadly violence has flared up once again on the long-disputed border between Thailand and Cambodia. Tensions between the Southeast Asian neighbors took a turn in May when a Cambodian soldier was killed during a brief battle between Thai and Cambodian troops. Both sides claimed to have acted in self-defense. Over the summer, Thailand took control of border checkpoints, imposed restrictions on crossings and threatened to cut electricity and internet to Cambodia's border towns. Cambodia stopped imports of Thai produce and banned Thai movies and TV dramas. Both militaries reinforced troops along the border. Two recent landmine explosions that injured troops prompted the countries to downgrade relations even further and recall diplomatic staff. Then, as deadly clashes erupted along the border today, Thailand deployed fighter jets and bombed Cambodian military targets. Cambodia said it plans to 'respond decisively.' Two Ohio police officers were allegedly ambushed by an armed man in an undeveloped industrial park on Wednesday. According to officials, the gunman waited on a dead-end street and then opened fire on two Lorain officers when they parked their vehicles there to eat lunch. Another officer, who responded to the victims' call for help, was also shot. At this time, the first two officers are listed in critical condition after suffering multiple gunshot wounds. The third officer was shot in the hand and treated at a local medical facility. The shooter has been identified as a 28-year-old man from Lorain. It's not clear if he was killed by the officers or took his own life, only that he 'was shot on scene and was pronounced deceased,' officials said. Plane crashes in Russia's Far EastA Soviet-era passenger plane carrying about 50 people went down in Russia's far eastern Amur region, state media reported on Thursday, citing local officials. The Amur Center for Civil Defense and Fire Safety said on Telegram that a search and rescue helicopter spotted the wreck of the plane on a mountain slope 10 miles from the town of Tynda. GET '5 THINGS' IN YOUR INBOX If your day doesn't start until you're up to speed on the latest headlines, then let us introduce you to your new favorite morning fix. Sign up here for the '5 Things' newsletter. In March, the right-wing podcaster revived a conspiracy theory about France's first lady Brigitte Macron. Salvador Plasencia is one of five people who were charged in relation to the 'Friends' star's death. The tennis superstar revealed the big news after becoming the second-oldest woman to win a tour-level singles match. And the comedian is overjoyed to be entering his dad era. Let's just say it has to do with the Los Angeles Dodgers player's dog. $1.1 billionThat's how much President Trump's tariffs on imported cars and car parts cost General Motors in the second quarter. The automaker said it expects tariffs to cost it as much as $5 billion by the end of the year. 'We don't have access to (drinking) water at all. Water shortage is a huge problem affecting our daily life.' — A Kabul resident, speaking to CNN. According to a report by Mercy Corps, the Afghan city may soon become the first modern capital in the world to run completely dry. 🌤️ Check your local forecast to see what you can expect. Conservationists and veterinarians are fighting to rescue and rehabilitate these adorable creatures. Today's edition of 5 Things AM was edited and produced by CNN's Andrew Torgan.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store