J.D. Alexander Hearts Insurance Companies

Gary Fineout has this tweet informing us who Florida Senator JD Alexander's real constituents are.

First hearing on major insurance bill gets testy. Sen. Alexander goes after insurance consumer advocate, says state has "suppressed" rates

Nothing could be further from the truth. State Farm of Florida stopped selling homeowners insurance when former Gov. Charlie Crist cracked down on homeowners insurance price fixing. In 2009, State Farm attempted to raise homeowner insurance rates by 47.1 percent. Insurance Commissioner Kevin McCarty rejected State Farm Florida's request. State Farm dropped all homeowner insurance policies and gave their customers 90 days notice. Florida and State Farm of Florida came to the compromise of a 14.8 percent rate increase.

Except State Farm never got out of Florida homeowner insurance business. State Farm of Florida set up the virtual offshore company DaVinci Reinsurance Ltd in Bermuda in 2001. Virtual means DaVinci Reinsurance Ltd has no actual office. The Bermuda adrress is a yacht club. DaVinci Reinsurance Ltd is able to get around Florida regulations by being an offshore company. DaVinci can set whatever price the company wishes. DaVinci underwrites homeowner insurance claims for several Florida insurers.

During the past decade State Farm of Florida 2.6 billion profit. J.D. Alexander's claim that regulators are being too tough on the insurance industry doesn't pass the laugh test.