Colodny Fass Insurance-Related Florida Legislative Bill Tracking Summary: Week Ending March 11, 2011

 

Colodny Fass presents its weekly bill tracking report for the week ending March 11, 2011.

This report, which is attached, is designed to assist in following pending priority state-level insurance issues during the 2011 Florida Legislative Session.  It will be updated and circulated weekly until the final two weeks of the Session, whereafter it will be circulated with daily updates.

Florida’s 2011 Regular Legislative Session begins on March 8 and runs through May 6. 

For easy reference and accessibility, the summary organizes and tracks activity related to key insurance topics.  As these develop throughout the legislative process, other bills of interest will be added.  

Bills that have been updated from the previous week’s summary are marked in orange as “UPDATED.”  The following insurance-related bills have been added and are marked in red as “NEW” on the attached summary:

 

SB 1900 relating to Insurance by Senator Jeremy Ring

Provisions relating to acquisition of controlling stock with respect to stock and mutual insurers would be amended under SB 1900.  A person would not be permitted to acquire a domestic stock insurer or a controlling company unless such person has filed with the Florida Insurance Commissioner (“Commissioner”) and sent to the insurer a statement containing specified information and the offer, request, invitation, agreement or acquisition has been approved by the Commissioner of Insurance.  SB 1900 would authorize the Commissioner to retain attorneys and experts in reviewing the proposed acquisition of control.  Effective date:  July 1, 2011

 

SB 1800 relating to Public Records/Commissioner of Insurance by Senator Jeremy Ring

Linked to SB 1900, SB 1800 would provide an exemption from public records requirements for notice of a proposed divestiture in a domestic insurer provided to the Florida Insurance Commissioner pursuant to the acquisition of a domestic stock insurer.  The bill specifies the duration of the exemption, as well as provides an exemption from public records requirements for the identity of a lender pursuant to a merger or other acquisition of control of a domestic stock insurer where a source of consideration is a loan made in the lender’s ordinary course of business, upon request of the lender.  Effective date:  contingent

 

SB 1908 relating to Insurance by Senator Chris Smith

SB 1908 would remove an exemption from regulation under the Florida Deceptive and Unfair Trade Practices Act provided for persons or activities regulated by the Florida Office of Insurance Regulation.  It also specifies that the business of insurance is subject to the Florida Deceptive and Unfair Trade Practices Act.  SB 1908 further clarifies that an affiliate of a medical malpractice insurer is subject to the provisions that govern rates for medical malpractice insurance.  Effective date:  July 1, 2011

 

SB 1806 relating to Motor Vehicle Insurance by Senator Miguel Diaz de la Portilla

Provisions relating to proof of financial responsibility for rented or leased motor vehicles would be revised under SB 1806, which would establish certain responsibilities relating to the provision and obtaining of liability insurance for lessors and lessees of rented and leased motor vehicles.  The bill would revise who is deemed to be the owner of a motor vehicle for purposes of determining financial responsibility.   Further, it would revise the applicability of certain provisions relating to financial responsibility of an owner of commercial motor vehicles.  Effective date:  July 1, 2011

 

SB 1930 relating to Motor Vehicle Personal Injury Protection Insurance by Senator Ellyn Bogdanoff

Contents of written reports of motor vehicle crashes would be revised under the provisions of SB 1930, which also would require that an application for licensure as a mobile clinic include a statement regarding insurance fraud.  Should it become law, the bill would authorize the Florida Division of Insurance Fraud to establish a direct-support organization for the purpose of prosecuting, investigating and preventing motor vehicle insurance fraud.  A claimant’s request about insurance coverage would be required to be appropriately served upon the disclosing entity.  Effective date: July 1, 2011

 

HB 1411 relating to Motor Vehicle Personal Injury Protection Insurance by State Representative Jim Boyd

Cited as the “Comprehensive Insurance Fraud Investigation and Prevention Act,” HB 1411 would provide for legislative intent and revise provisions relating to crash reports.  The bill would authorize an officer to testify at trial or provide an affidavit.  It would also authorize a direct-support organization for prosecuting, investigating and preventing insurance fraud.  The bill defines terms, as well as revises requirements relating to forms submitted by providers.   It also would revise provisions relating to payment, along with providing that time for paying or denying claim is tolled during an investigation of a fraudulent act.  HB 1411 specifies when benefits are not payable and would provide that a claimant violating certain provisions is not entitled to payment.  The recovery of payments would be authorized under this legislation, which also would forbid those failing to comply with certain provisions from billing an injured person or insured.  However, an insurer would be afforded the right to a conduct reasonable investigation.  Reimbursement limitation would be revised and providers would be required to ensure that an insured understands the services provided.  Further, HB 1411 would revise discovery provisions and would authorize an insurer to provide a discount to an insured who selects a preferred provider.  Finally, the bill would authorize nonpayment for nonemergency services by a non-preferred provider in certain circumstances and provides for civil penalties for criminal acts causing unlawful receipt of proceeds.  Effective date:  July 1, 2011

 

HB 1439 relating to Motor Vehicle Insurance by State Representative J.W. Grant

Provisions relating to proof of financial responsibility for rented or leased motor vehicles would be revised under HB 1439, and lessors and lessees of rented and leased motor vehicles would have certain responsibilities relating to the provision and obtaining of liability insurance.  Identical to SB 1806, the legislation would revise who is deemed to be the owner of a motor vehicle for purposes of determining financial responsibility.  It also would revise the applicability of certain provisions relating to the financial responsibility of commercial motor vehicle owners.  Effective date:  July 1, 2011

 

 

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

 

To unsubscribe from this newsletter, please send an email to bellis@cftlaw.com.