- March 28, 2024
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Just days after Florida’s Legislature passed its second property insurance reform bill of the year, the commissioner of the state’s Office of Insurance Regulation announced his resignation.
David Altmaier, who has served in that role for more than six years, will leave Dec. 28.
In a resignation letter sent to Gov. Ron DeSantis Thursday, Altmaier did not state his reasons for leaving.
He did say by working with the governor and the Legislature “to meet historic challenges with historic reforms, we have come together to respond to catastrophes, and we’ve implemented rules and regulations that have safe guarded Florida’s insurance consumers while keeping our insurance markets viable.”
During a special session on property insurance that began Dec. 12, legislators approved a reform bill that creates a $1 billion reinsurance plan to address potential shortages after a storm, requires insurers to move faster on claims, eliminates assignment of benefits and, in what may address the biggest problem facing the state’s insurance industry, does away with the one-way attorney fees.
Altmaier was appointed to the position in April of 2016 by then-Gov. Rick Scott. During his tenure, he’s overseen an industry in turmoil where property insurance rates have shot upward as dozens of insurers have stepped away from Florida or become insolvent.
This past summer he publicly feuded with the ratings agency Demotech after it warned more than 17 property insurance companies that they faced downgrades and may have to stop writing policies in Florida. Altmaier’s agency came up with proposal that would create a temporary reinsurance plan through the state-run Citizen Property Insurance Corp.
The plan took advantage of an exception in Fannie Mae and Freddie Mac rules requiring the mortgages they back to have policies written by an insurer that meets financial rating requirements.
The exception, Altmaier said, is for an insurer covered by a reinsurer who assumes 100% liability for any unpaid covered losses if a company becomes insolvent. Given the circumstance, the office, working with Citizens Property Insurance Corp., created the program that met the exceptions.
Fannie Mae and Freddie Mac officially established a temporary market stabilization arrangement with the state Dec. 7.
Demotech says that after reviewing the financials of the companies they had warned, only three were downgraded.
“I am so proud of the work the office has been able to accomplish during my tenure,” Altmaier wrote in the resignation letter. “I remain committed throughout the remainder of my tenure – and after – to continue the momentum we have established.”