Previously, I blogged about some of the bills filed in Florida attempting to reform the insurance industry. I promised to provide an update on the proposals once the legislative session closed.
The status of the bills as of May 22, 2011:
- Lifting the mandate that insurers offer sinkhole coverage (SB 408) SIGNED INTO LAW BY GOVERNOR
- Changing an insurer’s written notice of nonrenewal, cancellation, or termination of a personal or commercial residential property insurance policy to 90 days (SB 408) SIGNED INTO LAW BY GOVERNOR
- Making the Citizens Property Insurance Corporation the insurer of last resort by raising rates and reducing coverage (SB 1714) DIED IN RULES COMMITTEE
- Preventing the insurance consumer advocate from giving grades to insurers (SB 408, SB 1462) SB 1462 DIED IN BANKING & INSURANCE COMMITTEE
- Removing the Office of Insurance Regulation’s ability to approve rate hikes and allow rates to increase by 30% or less per year (SB 1330) DIED IN BUDGET COMMITTEE
- Changes to the bad faith law (SB 1592) DIED IN BUDGET COMMITTEE
SB 408 is considered to be an overhaul of property and casualty insurance. It was signed by the Governor on May 17th and it is now Chapter 2011-39. The effective date of the new law is May 17, 2011, unless noted otherwise.
Some of the provisions of the new law are:
- Increasing the solvency of residential property increase companies by requiring them to have at least $15 million surplus to pay claims
- Mitigating large sinkhole claim payments based on frivolous damage
- Capping public adjuster fees
- Reducing notice of non-renewal for insurers that are financially impaired to 45 days and reducing the time that the policyholder must wait to be insured by a financially solvent company from 100 to 45 days
- Reducing notice of non-renewal for Citizens Property Insurance Corporation to 45 days only if policyholder wants to leave Citizens
- Allowing the opportunity to buy a policy that insures a dwelling and personal property on a replacement cost basis at a lower premium
- Prohibiting deceptive solicitation from public adjusters
- Removing the requirement that an insurer must send a notice of non-renewal when proposing new contract terms to prevent consumer confusion
- Reinstating file and use requirement for property insurance rates
Editor’s Recommendation: Stay current with activity in Florida, or any jurisdiction, quickly and easily with NILS INsource.
