Florida regulators are suffering from “political schizophrenia,” according to an insurance industry analyst.

Christian Cámara, director of the Florida office of The Heartland Institute’s Center on Risk, Regulation and Market, said the delays in holding hearings are the latest attempt by the Florida Office of Insurance Regulation to prevent State Farm, the state’s largest private-sector insurer of homeowners, from leaving the state’s homeowners insurance market.

Kevin McCarty

The Florida insurance office and Insurance Commissioner Kevin McCarty continue to enact policies that will force insurance companies to stop writing business in the state, Cámara said. The Heartland Institute is a nonprofit organization advocating free-market reforms.

“Florida government seems to be suffering from political schizophrenia these days,” Cámara said in a statement. “On one hand, it enacts policies that drive private companies away from the insurance market–and brags about it.

“Then on the other hand, it uses bureaucratic stall tactics as a mechanism to hold companies captive and force them to stay in Florida against their will, which is entirely un-American and effectively scares away other insurers that might be considering entering the state.”

In February 2009, McCarty issued an order approving State Farm’s withdrawal plan with several conditions. The debate over those conditions continues, as Florida officials put off another hearing on the matter.

Those conditions, according to McCarty’s order, include not “dumping” all of its homeowners policies on the insurer of last resort, Citizens Property Insurance Corp.; permitting agents to place existing policies with other insurance companies; and immediately surrendering its insurance license. State Farm wants to hold the license until it completes the two-year withdrawal plan.

An administrative law hearing on the negotiations is now scheduled for Jan. 25.

Cámara said Florida should work to create “a better, more free market” for the benefit of consumers and the economy.

“The state should enact meaningful, market-freeing reforms not only so the insurer willingly stays, but also to attract its competitors to ensure that risk is spread, prices are competitive, and consumers enjoy ample choice,” he said.