Amendments to SB 408: Chairman Garrett Richter and Senator Mike Fasano File Majority of Amendments to Major Residential Property Insurance Bill

Just one day before SB 408 is scheduled to be taken up by the Senate Committee on Banking and Insurance during its January 25, 2011 meeting, 23 amendments have been filed to the bill, which relates primarily to residential property insurance.

The majority of the amendments, which are listed below with corresponding hyperlinks to their complete texts, have either been filed by Senator Mike Fasano or Committee Chairman Garrett Richter, who is also the bill sponsor.   
    
To view bill information and the complete text of SB 408, click here.

• Committee Amendment 131262  by Senator Mike Fasano would establish experience criteria for sinkhole neutral evaluators.
• Committee Amendment 160462 by Senator Fasano specifies what constitutes a change in policy terms and clarifies the definitions of “policy” and “renewal.”                       
• Committee Amendment  245588 by Senator Fasano would make a third-degree felony the failure of a seller of real property to make certain disclosures and provide a buyer with a copy of any inspection reports and certifications.
• Committee Amendment 249528 by Senator Garrett Richter relates to actual and replacement cost value payments on dwelling and personal property claims.  
• Committee Amendment 284748 by Senator Fasano defines “structural damage” as it relates to sinkhole loss.  It further describes specific cosmetic damage that is not covered unless it is accompanied by structural damage. 
• Committee Amendment 338208 by Senator Richter relates to the burden of proof in sinkhole claims.  It also revises the reports that an insurer must file with the applicable clerk of the court and requires the policyholder to file certain reports as a precondition of payment acceptance. 
• Committee Amendment 353588 by Senator Fasano relates to sinkhole claim certifications.  It requires the professional engineer responsible for monitoring sinkhole repairs to issue a report and certification to the property owner, as well as file such a report with the court.
• Committee Amendment 388934 by Senator Richter revises the definition of “losses” relating to the Florida Hurricane Catastrophe Fund to exclude certain losses and provide applicability.
• Committee Amendment 440210 by Senator Richter repeals the requirement that the Florida Insurance Consumer Advocate prepare an annual report card for each personal residential property insurer for Florida’s Chief Financial Officer.
• Committee Amendment 454164 by Senator Fasano requires the certification of public adjusters for sinkhole damage to be certified.  Exemptions could be granted for certain experience.  The amendment would also require the Florida Department of Financial Services (“DFS”) to adopt advertising standards by rule and review proposed advertisements by certified adjusters.  The DFS would also be able to charge a fee for such a review.
• Committee Amendment 458400 by Senator Fasano relates to the establishment of a sinkhole database and creates a new section of Florida law that would mandate counties to adopt an ordinance requiring permits before conducting an investigation of potential sinkhole activity, as well as before making any repairs resulting from sinkhole activity.  A summary of the investigation and repairs would be required, as well a copy of the permit and summary to be filed in the county records.
• Committee Amendment 536106 by Senator Richter would afford an insurer the discretion to provide a policyholder with an opportunity to purchase an endorsement to sinkhole coverage.
• Committee Amendment 542594 by Senator Richter would amend the surplus requirement provisions of HB 408.                      
• Committee Amendment 564896 by Senator Fasano relates to insurer takeouts of non-renewed policies from Citizens.
• Committee Amendment 599640 by Senator Fasano would authorize a policyholder to retain a professional engineer or geologist at the policyholder’s expense to conduct testing or dispute sinkhole-related findings.  It also would require all sinkhole-related repairs to be completed within a certain time with certain exceptions and provide for  a criminal penalty for offering a rebate or for accepting a rebate from persons performing such repairs.  Senator Fasano’s amendment also revises provisions relating to sinkhole-related inspection reports.
• Committee Amendment 642410 by Senator Richter relates to the qualifications of professional engineers and geologists in the evaluation of sinkhole activity.                    
• Committee Amendment  650902 by Senator Richter defines “policy” as it relates to personal lines property and casualty insurance.
• Committee Amendment 743056 by Senator Fasano requires authorized Florida property insurers to provide catastrophic ground cover collapse.                         
• Committee Amendment 775666 by Senator Richter provides for sinkhole-related reimbursement only if a policyholder requested testing and reporting pursuant to ss.627.7072 and 627.7073, F.S.
• Committee Amendment  785390 by Senator Richter is a technical amendment relating to recommendations set forth in an insurer’s report issued pursuant to s. 627.7073, F.S.   
• Committee Amendment 912394 by Senator Richter revises Citizens’ requirements for providing an insured with notice of nonrenewal, cancellation or termination of personal lines or commercial residential property insurance.
• Committee Amendment 925914 by Senator Chris Smith would insert specific language within SB 408 relating to legislative intent in regard to sinkhole insurance coverage.                        
• Committee Amendment 973566 by Senator Richter would void coverage in the event that a policyholder receives a contractor rebate from sinkhole-related repairs.          

Should you have any questions or comments, please contact Colodny Fass.