I-Fans,

The quote is from a State Farm lobbyist, and the hysteria is not in Baton Rouge or Jackson, but Tallahassee.

Here’s the headline:

Suddenly, a pro-consumer Legislature emerges

and here’s the story from Sunday’s Sarasota-based Herald-Tribune.

What matters about the proposals below is that they’re backed by the new Republican governor, Charlie Crist, the former attorney general who became known as “Chain Gang Charlie” because he supported their use for prison inmates. Although Crist has pro-consumer initiatives on his record as well, this isn’t exactly Rosa Luxemburg.

Also noteworthy is what the Herald Tribune State House reporter, Lloyd Dunkelberger, says in his lede (first paragraph):

“TALLAHASSEE — In this week’s special session, Florida lawmakers are poised to pass some of the strongest, pro-consumer insurance legislation that perhaps has ever been seen in Tallahassee. “

And then in this interesting observation:

“If the legislation becomes law — which seems likely at this point – it will be harder for property insurance companies to raise their rates despite the state’s recent history of hurricanes. The overnight transformation of a Republican, anti-regulation Legislature into a Ralph Nader-esque entity has left insurance lobbyists stunned.

‘It’s hysteria right now,’ one complained.”

The measures, which seem likely to pass, include:

1. Rolling back a 56 percent rate hike by Florida’s state-run Citizens Property Insurance

2. Prohibiting cancellations during hurricane season;

3. Banning “excess profits” by insurers;

4. Ending “cherry-picking,” refusing to sell property coverage while selling auto and other more profitable lines;

5. Banning the longstanding use of Florida-only subsidiaries, known as “pup companies, which critics say obscure a national insurer’s true financial health.

6. Eliminating arbitration panels considered industry friendly.

7. Requiring insurance executives to sign legal oaths validating the truthfulness of their state financial filings.

8. Requiring annual “insurer report cards,” which would give companies a letter grade based on issues such as the number of consumer complaints filed against the company. (Report cards. Hmm. Why didn’t ITP think of that?)

There’s more, but you get the point. If those seem to be market-unfriendly measures, they probably are. I sometimes say Katrina created an important insurance laboratory, but really Florida’s insurance dilemma is much bigger, more advanced and more acute.

Thanks to Non-Profit Prophet

More news from Florida:

Insurance weighs heavily on state

The sub-headline is: “Nature’s fury, market forces drive Florida to the brink.”

And in Mississippi, the Sun-Herald’s Anita Lee reports that Attorney General Jim Hood’s grand jury investigation is continuing:

State Farm employee to testify

Thanks to MizBizJourno