Call Report UPDATE

CALL Alert for September 10, 2008-Florida Insurance Commissioner Orders State Farm to Refund $120 Million to Policyholders for Unpaid Mitigation Discounts

Dear Edward Black of Chatham B Condominium Association, Inc.,

Florida Insurance Commissioner Kevin McCarty yesterday announced that he has ordered State Farm Florida to issue credits or refunds totaling $120 million to current and former policyholders who did not receive discounts for making their homes stronger against hurricanes.

State Farm has identified about 98,000 current or former policyholders to whom it will provide credits or refunds. The persons entitled to the refunds include single-family homeowners, condominium unit owners, and condominium associations.

Current policyholders entitled to the refund will receive a credit to the renewal premium. Former policyholders entitled to the refund will receive a check. The refund must include 7 percent interest on the amount due to each policyholder until paid.

This is certainly good news for owners and associations who took affirmative action to strengthen their homes and condominiums against hurricanes. Many owners and condominium associations have installed hurricane shutters and/or hurricane resistant windows and doors and should have received credits from their insurance companies. If you have not yet taken steps to install hurricane protection, we strongly urge you to consider doing so. If you are an association and are confused about your ability to install hurricane shutters or other hurricane protection, please contact your community association attorney.

If you are a condominium association, keep in mind that a new law was passed during the 2008 Legislative Session that may give your condominium association additional options for installation of hurricane shutters and other hurricane protection.

Sincerely,Yeline Goin and David Muller, Co-Executive DirectorsCommunity Association Leadership Lobby (CALL)