Accomplishments
Some of the accomplishments of the Office of Insurance Regulation during Commissioner
McCarty’s tenure:
2011- Present
Launched series of investigations and examinations to change Life Insurer practices and
ultimately return over $5 Billion to beneficiaries in all US states. Investigations and actions were
begun in conjunction with the Attorney General’s office and the Department of Financial
Services Unclaimed Property and Legal Divisions. Commissioner McCarty chaired a task force
at NAIC to coordinate efforts with lead states of California, Illinois, Pennsylvania, New
Hampshire and others.
Investigated and addressed, at least with an interim solution, the inability of some insureds to
obtain drugs for HIV/Aids. Insurers had reclassified HIV drugs to high tiers and imposed
significant new co-pays or co-insurance requirements. Most agreed to revise their practices.
Hearings and acquisition filing approvals for significant company combinations. For example,
FPIC’s acquisition by the Doctor’s Company in 2011; more recent reorganization of Florida Blue
and major national health insurers.
Implementation issues due to the Affordable Care Act; resolution of coordination and rate filing
issues without litigation due to legislative 3-year adjustment period
Approval of a reduced-cost title insurance product for refinancing and other situations
Promotion of legislation to adopt Principles Based Reserving for life insurers in Florida
Lender-Placed insurance issues addressed by consent order; established annual rate filings
resulting in reduced costs to consumers
Handled filings from PIP repeal, reinstatement and 2012 reform. Each reform necessitated
policy form filings from each auto insurer to comply with new legislative mandates
Each year, hearings on rates for Workers Compensation filed by NCCI
Each year, hearings on the Citizens rate filings
Assisted other states with the design of data collection for Superstorm Sandy
Revised the Florida data collection system in preparation for hurricanes
Work with NAIC to design and promote Apps for consumers such as hurricane preparedness
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Annual Reports and “Fast Facts” publications; presentations before Financial Services
Commission (Governor and Cabinet) for transparency of regulatory actions and market
information
Encouraged Florida insurers to write limited flood insurance to accommodate property
customers; worked with legislature to remove barriers to this without sacrificing consumer
protections
Revised Mission, Vision statements, performance measures and regulatory plans.
Repealed dozens of rules.
Encouraged and licensed international insurance companies to open offices in Florida and
utilize its attractive business climate for growth and employment opportunities.
Stopped a post-claim underwriting practice that left consumers without coverage
Adopted a series of new model acts intended to address gaps in regulation after the financial
crisis, and bring the US into a regulatory framework more similar to other countries.
Worked to loosen restrictions and encourage responsible writing of flood coverage by Florida
residential property insurers.
Approved take-out agreements resulting in dramatic reductions of Citizens policyholder count
from 1.4 million to under 600,000
Reduced the time for approval or disapproval decisions for both rate and form filings
Expanded exam capacity to examine all new companies, less than three years old, every year
and to examine all domiciled insurance companies at least once every five years.
Contracted routine market conduct exams, and focused on targeted exams, particularly
industry-wide issues that have the potential to harm thousands of consumers
Enhanced technology systems to help reduce submission times and increase efficiency for
industry personnel filing form and rate filings; data call and company application information;
and other related data to the Office
Participated in numerous NAIC workgroups, committees and task forces focused on pertinent
state and federal insurance issues.
Joined as a signatory with the International Association of Insurance Supervisors Multilateral
Memorandum of Understanding to share insurance regulatory information between member
jurisdictions and to be used as an important resource for cross-border global efforts to
strengthen consumer protections
Testified before several Congressional House and Senate committees on a variety of national
insurance issues to include domestic capital rules and the impact of international regulatory
standards on the competitiveness of U.S. insurers, etc.
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Expanded and improved the rate comparison search system database, named CHOICES, to
assist consumers looking for sample rates in any Florida county for auto, home, small group and
Medicare Supplement insurance.
In 2012, employed the Catastrophe Stress Test of domestic insurers, in conjunction with the
Annual Reinsurance Data Call. The main purpose was to evaluate the market’s ability to absorb
various hypothetical storm scenarios. Released a public report with aggregate results for
consumers in 2015.
Expanded the Office’s insurance rate comparison systems (CHOICES) into a centralized
location on the website to allow consumers the ability to search sample rates in any Florida
county for homeowners, automotive, Medicare Supplement and small group health insurance.
Continuously review and enhance, when necessary, both the qualitative and quantitative
standards for insurance companies approved to participate in the Depopulation program to
include looking at the company’s business plan, underwriting, reinsurance, policy selection,
geographic distribution of risk, selection of rates, and the financial impact of the take-out on the
insurer’s operations.
2008-2011
Elections to Secretary/Treasurer, Vice President, President-Elect, and President of the NAIC
(2008-2012)
Worked to help revitalize the Florida Property Market
Worked with at least four executive directors of Citizens or its predecessor, and a series of
Chairs of the Board of Citizens and other statutorily-created organizations
Visited Lloyds of London with three governors
Visited Bermuda and worked with the Bermuda Monetary Authority to encourage the growth of
alternative capital and the catastrophe reinsurance markets to provide capacity to insure Florida
property risk
Also worked with other jurisdictions including European, Asian, and Cayman Island authorities
to encourage the growth and development of the international catastrophe reinsurance and
alternative risk transfer markets to provide capacity to insure Florida property risk.
Three OIR employees won national regulatory Dineen Awards: Rich Robleto, Ray Spudeck,
and Belinda Miller
Florida OIR recognized with the Esprit de Corps award by other states at NAIC
2011 Florida and NY first to recognize new reinsurance collateral requirements based on
financial strength rather than domicile alone
Recruited and trained key staff; upgraded qualifications and professional expectations of
examiners and analysts
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NIMA- multistate agreement to provide a single portal for payment of surplus lines taxes for
participating states; avoided confusion and expense after Dodd-Frank Act. Worked with the
Florida Surplus Lines Service Office to continue to provide efficient collection services to Florida
and other participating states.
Florida employees held the first and many additional designations from NAIC for their expertise
in insurance regulation. (Steve Szypula 2009)
Fought the use of mandatory arbitration, prevailing in a 2008 case to protect consumers from
insurance policy language that limits their rights of access to courts.
Established and improved the OIR website with comparison shopping tools for consumers as
well as a wealth of information about insurers and insurance market issues affecting Florida.
Launched “Shop and Compare” in 2008 for homeowners insurance, followed by similar tools for
auto, health, and other insurance products.
In June 2007, ordered $43 million refund to consumers.
In 2008, held Hearings on Stranger Owned Life Insurance and abusive practices in the sale of
life insurance policies
In 2008, issued an Order requiring a Florida company that was a subsidiary of a major national
group to pay $120 million to policyholders who should have received hurricane mitigation
discounts
Navigated the financial crisis of 2008 including issues affecting AIG, mortgage guaranty
insurers, and the uncertainty about the Florida Hurricane Catastrophe Fund’s ability to issue
sufficient bonds to pay catastrophe claims in a timely manner
Prevailed in litigation against viatical settlement providers fighting suspensions and exams
Allowed and encouraged insurers to offer policy form language in Spanish
2004-2008
Shut down numerous Unlicensed Insurers who take premium from people, but then do not pay
claims
Shut down unscrupulous Viatical Settlement Companies
Made thousands of rate and form approval or disapproval decisions, holding public hearings on
some of the most controversial, and litigating a few, and prevailing in the litigation.
Managed, and ultimately settled litigation about mold coverage
Issued Certificates of Authority to create hundreds of insurance and insurance services
companies
Managed the chaos following the 2004-2005 hurricanes
Worked through rate filings in excess of 80% one-year increase requests, Arbitration
proceedings, Senate hearings and other issues related to hurricane losses after the 2006
storms and throughout 2007.
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Implemented legislation requiring a “Presumed Factor” for the reduction of homeowners
insurance rates in 2007 and worked through all associated filings from every insurer writing
residential property insurance in the state
Managed the threatened withdrawal of State Farm Florida which now enjoys profits and has
built up surplus.
Held public hearings and worked to adopt legislation and policy language to address
skyrocketing sinkhole losses
Held numerous hearings, data calls and published studies on issues ranging from sinkhole
claims to auto insurance to medical malpractice insurance, occupational rating, credit scoring,
and many other topics.
Handled many solvency issues- restored companies to solvent positions in some cases,
facilitated acquisitions, and in other cases where no recovery was possible without court order,
moved to place companies in receivership as early as possible to maximize creditor recoveries.
Fall 2007-2008 handled “true up” filings from the Presumed Factor project to recognize
consumer savings from reductions in reinsurance cost due to FHCF expansion; conducting
numerous public hearings to make rate filing process transparent
In 2006, conducted investigations and entered orders requiring insurers to stop abusive sales
practices to members of the military
Established regulation of medical discount plans to prohibit misleading statements suggesting
the plans were insurance
Adopted a Sinkhole rating factor in 2006
Ordered the return of money to consumers for “Excess Profits” in 2006 of over $5 million
Testified before Congress on Coastal Insurance markets in September 2006
Also September 2006, ordered a major national insurer to refund money to consumers and pay
appropriate taxes on misclassified premiums of more than $14 million
Stopped insurers from taking out policies from Citizens and almost immediately increasing rates
by “use and file” filings
Suspended a major national company for failure to comply with document
production/examination requirements and established case law on duty of insurers to cooperate
with examiners
Worked with Attorney General and DFS to stop contingent commission abuses, protecting
insureds from unfair and deceptive practices
Held a public hearing and issued an order on a rate filing by Conseco Senior after it made a
filing to double Long Term Care insurance rates.
Coordinated with the SEC, United States Attorney and the Florida Office of Statewide
Prosecution to shut down and send to jail those responsible for defrauding investors in the
Mutual Benefits case
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Established a program for annuity policy form filings to allow one filing to be simultaneously
reviewed by Florida, Texas, and California and to complete reviews within 60 days. The goal
was met to increase speed of new products to market to increase the consumer’s choice of
products, and to decrease time and expense for insurers.
During 2004 Hurricanes, the Office issued a number of emergency rules that were later codified
to protect consumers during evacuations. One order allowed consumers to obtain a 30-day
supply of prescription medications to take with them when evacuating their homes, even if their
prescription refill is not yet due. Other rules prohibited insurers from canceling or non-renewing
at certain times because mail and notices were disrupted. Most of these have been codified so
that emergency rule making is no longer required to the same extent.
Workers Compensation rates were decreased by at least 58% over 2003-2013 years. This
saved Florida businesses billions of dollars that they could reinvest in growth and hiring.
Worked to promote a National Catastrophe Program. Raised awareness of the need to prepare
for catastrophes including financing and mitigation of homes. In 2005, the NAIC adopted a
resolution to ask Congress to pass a National Catastrophe Plan. Many plans have been
proposed through legislation, but none have passed.
Promoted standardization of rating territories. This never passed, but the discussion helped to
raise public understanding about the rate review process. This was also a goal of the numerous
public hearings on rate filings.
Promoted protection of seniors from abusive insurance practices- advocated legislation to
require documentation of suitability so that seniors were not “churned” from one annuity to
another when it was not in their interest.
Addressed “Freedom to Travel” prohibiting insurers from refusing to insure people who stated
their intent to travel to a particular country, like Israel.
Promoted Long Term Care legislation to keep companies from “closing” an existing block of
policies and having its rate accelerate beyond the new business rate.
Established reporting requirements and collected data for hurricane losses through the 20042005 storms.
Worked with DFS to create its mitigation program. Served as trainers for mediators, and
provided legal assistance to the program.
Created a reporting system that could be shared among states to have one, uniform report of
hurricane claims. Actually collected data for states affected by Hurricane Katrina.
Rented a small airplane and flew a crew to assist Mississippi after Hurricane Katrina when its
consumer services staff had been working without a break for days. Helped to arrange phone
assistance from Mississippi and Kansas City, and helped Mississippi create a mediation
program, ultimately settling hundreds of claims.
Promoted Hurricane Loss Mitigation of property throughout Florida; established a system of
premium discounts or credits for homeowners who mitigate against hurricane risk
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Established a commercial Joint Underwriting Association when businesses were unable to buy
property insurance; controlled its growth by requiring policies to be shopped, and ultimately
dissolved it when the market improved.