Colodny Fass Insurance-Related Florida Legislative Bill Tracking Summary: Week Ending March 4, 2011

 

Colodny Fass presents its weekly bill tracking report for the week ending March 4, 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 insurance-related bills below are newly filed this week.  Each has been added to the attached summary and marked in red as “NEW“ on the attached summary:

 

SB 1816 relating to Surplus Lines by Senator Mike Fasano

Under the provisions of SB 1816, surplus lines agents would be required to file a quarterly affidavit on or before a specified time stating that all surplus lines insurance transacted during the preceding quarter has been submitted to the Florida Surplus Lines Service Office.  The Florida Department of Financial Services and the Florida Office of Insurance Regulation would be authorized to enter into a specified type of agreement with other states pursuant to federal law for the collection and allocation of certain nonadmitted insurance taxes.  Effective date:  July 1, 2011

• (IDENTICAL TO SB 1227) HB 1227 relating to Surplus Lines by State Representative Bill Hager

 

SB 1592 relating to Civil Remedies Against Insurers by Senator John Thrasher

SB 1592 would revise provisions of law relating to civil actions against insurers.  The bill would revise the grounds for bringing an action based on an insurer’s failure to accept an offer to settle within policy limits. It also would provide that the insurer has an affirmative defense if a third-party claimant or the insured fails to cooperate with the insurer. Damages that are recoverable from an uninsured motorist carrier in a civil action would be revised and limited.  Effective date:  July 1, 2011

• (IDENTICAL TO SB 1592) HB 1187 relating to Civil Remedies Against Insurers by State Representative Dennis Baxley

 

SB 1836 relating to Captive Insurance by Senator Miguel Diaz de la Portilla

The kinds of insurance for which a captive insurer may seek licensure would be expanded under the provisions of SB 1836, which is identical to its House companion, HB1235.  The bills would limit risks that certain captive insurers may insure and also specify requirements and conditions relating to a captive insurer’s authority to conduct business.  Before licensure, captive insurers would be required to file or submit specified information, documents and statements to the Florida Insurance Commissioner (“Commissioner”).  A captive insurance company would also be required to file evidence relating to its financial condition and quality of management and company operations with the Commissioner.  Applicant-sponsored captive insurers would be required to file a business plan, statements, sample contracts and evidence relating to expenses with the Commissioner.  The legislation would require a captive insurance company to pay fees and costs relating to application for licensure and renewal.  It also authorizes initial licensure until date certain and requires annual renewal thereafter.  Foreign or alien captive insurance companies would be required to become domestic captive insurance companies by complying with specified requirements.  The Commissioner would be authorized to waive any requirements for public hearings relating to the redomestication of an alien captive insurance company.  Finally, the bills would revise capitalization and security requirements for specified captive insurance companies.  Effective date:  July 1, 2011

• (IDENTICAL TO SB 1836) HB 1235 relating to Captive Insurance by State Representative Jeanette Nunez

 

SB 1750 relating to Property Insurance Appraisers/Appraisal Umpires by Senator Miguel Diaz de la Portilla

Identical to HB 947 by State Representative Frank Artiles, SB 1750 would provide license application, issuance, biennial renewal or continuation fees for property insurance appraisal umpires and property insurance appraisers.  Under the provisions of the bill, property insurance appraisal umpires and property insurance appraisers would be subject to the powers of the Florida Department of Financial Services, the Florida Financial Services Commission and the Florida Office of Insurance Regulation.  Should it become law, SB 1750 also would provide qualifications for licensure as a property insurance appraisal umpire and as a property insurance appraiser.

 

SB 1714 relating to Citizens Property Insurance Corporation by Senator Alan Hays

After a certain date, certain residential structures would not be eligible for coverage by Citizens Property Insurance Corporation (“Citizens”) under the provisions of SB 1714.  Policies issued by Citizens would include a provision that prohibits policyholders from engaging the services of a public adjuster.  Citizens would also be prohibited from levying certain assessments with respect to a year’s deficit until it has first levied a specified surcharge.  SB 1714 would require property owners in Special Flood Hazard Areas to maintain a separate flood insurance policy after a certain date.  Effective date:  upon becoming law

• (IDENTICAL TO SB 1714) HB 1243 relating to Citizens Property Insurance Corporation by State Representative Jim Boyd

 

HB 1169 relating to Public Records/Insurance by State Representative Evan Jenne

HB 1169 would provide an exemption from public records requirements for notice of proposed divestiture in a domestic insurer provided to the Florida Insurance Commissioner pursuant to an acquisition of the domestic stock of an insurer.  The bill specifies the duration of the exemption and also provides an exemption from public records requirements for the identity of a lender pursuant to a merger or other acquisition of control of the domestic stock of an insurer where the source of consideration is a loan made in the lender’s ordinary course of business, upon request of the lender.  HB 1169 provides for the review and repeal of exemptions, as well as for a statement of public necessity.  Effective date:  on the same date that HB 1167 or similar legislation takes effect, if such legislation is adopted in the same legislative session or an extension thereof and becomes law

 

HB 1167 relating to Insurance by State Representative Evan Jenne

Linked to HB 1169, HB 1167 would amend and create provisions of law relating to the acquisition of controlling stock with respect to stock and mutual insurers.  This would include prepaid limited health service organizations, health maintenance organizations, prepaid health clinics, continuing care providers and multiple-employer welfare arrangements within the definition of “insurer.”  The bill provides that a person may not acquire the domestic stock of an insurer or controlling company unless such person has filed with the Florida Insurance 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.  Effective date:  July 1, 2011

 

SB 1568 relating to Insurer Insolvency by Senator Bill Montford

Similar to HB 1007, SB 1568 would provide for State Risk Management Trust Fund coverage for specified officers, employees, agents and other representatives of the Florida Department of Financial Services (“DFS”) for liability under specified federal laws relating to receiverships.  Under the provisions of the bill, a covered claim for purposes of specified guaranty provisions would not include a claim rejected by another state’s guaranty fund or liquidation law on the basis that it constitutes a claim under a policy issued by an insolvent insurer which is within a deductible or self-insured retention.  Effective date:  upon becoming law

 

HB 1007 relating to Insurer Insolvency by State Representative Mack Bernard

HB 1007 would provide for Insurance Risk Management Trust Fund coverage for liability under specified federal laws relating to receivership for specified officers, employees, agents and others of the Florida Department of Financial Services.  Retroactive application of this coverage would apply under the provisions of the bill, which also would provide that a covered claim for purposes of specified guaranty provisions would not include a claim rejected by another state’s guaranty fund or liquidation law on the basis that it constitutes a claim under a policy issued by an insolvent insurer with a deductible or self-insured retention. Any Board member of the Florida Insurance Guaranty Association or Florida Workers’ Compensation Insurance Guaranty Association who is employed by, or has material relationship with, an insurer in receivership would be terminated as Board member under the provisions of HB 1007.  The bill would further provide for actions by the Florida Insurance Guaranty Association to obtain custody and control of records and data related to an insolvent insurer.  Attorney’s fees and costs would be awarded in certain circumstances.  Effective date:  July 1, 2011

 

SB 1694 relating to Motor Vehicle Personal Injury Protection Insurance by Senator Garrett Richter

SB 1694 would provide that the circuit court has exclusive jurisdiction in actions involving challenges to arbitration decisions under the Florida Motor Vehicle No-Fault Law. The bill would require a claimant’s request about insurance coverage to be appropriately served upon the disclosing entity.  It also would provide that an insurer that requests an examination under oath in a manner that is inconsistent with the policy is engaging in an unfair and deceptive trade practice.  Effective date:  upon becoming law

 

HB 1195 relating to Community Associations by State Representative George Moraitis Jr.

HB 1195 would require insurance companies insuring condominium association property to provide notice to unit owners if insurance will be canceled or not renewed by the association.  It would also authorize a majority of voting interests of the association to direct the board to obtain substitute coverage. The association board would also be authorized to install impact glass or other code-compliant windows under certain circumstances.  Under certain circumstances as provided by HB 1195, a condominium association may not be deemed to be previous owner of condominium unit.  Effective date: July 1, 2011

 

HB 1157 relating to Insurance by State Representative Evan Jenne

HB 1157 specifies that pt. II of ch. 501, F.S., also known as the “Deceptive and Unfair Trade Practices Act,” applies to business of insurance.  The bill would provide that rate standards for medical malpractice insurance apply to separate affiliate of insurer and would require medical malpractice liability insurers to file a surcharge or discount schedule with the Florida Insurance Commissioner before applying certain rates or surcharges.  HB 1157 would also require the Florida Office of Insurance Regulation to consider certain factors in determining an insurer’s rate base and require medical malpractice insurers to provide specified information when submitting a rate filing.  Effective date:  July 1, 2011

 

SB 1462 relating to Powers of the (Florida Insurance) Consumer Advocate by Senator Alan Hays

SB 1462 would delete a power of the Florida Insurance Consumer Advocate relating to the preparation of an annual report card grading personal residential property insurers.  Effective date:  July 1, 2011

 

HB 1087 relating to Persons Designated To Receive Insurer Notifications by State Representative Doug Holder

HB 1087 would change the designated person or persons who must be notified by insurer from “insured” to “first-named insured” in situations involving nonrenewal, renewal premium, cancellation or termination of workers’ compensation, employer liability or certain property and casualty insurance coverage.  The bill would make a conforming change to specify the “first-named insured” as a person who is to receive notification of renewal premium.  It also would change the designated person or persons who must be notified by an insurer from “insured” to “first-named insured” in certain situations involving cancellation or nonrenewal of motor vehicle insurance coverage.  Further, HB 1087 would make a conforming change to specify the “first-named insured’s insurance agent” as a person who is to receive certain notifications relating to motor vehicle insurance coverage, as well as make a conforming change that specifies the “first-named insured” as a person who is to receive notification of the cancellation of motor vehicle insurance coverage.  Effective date: July 1, 2011

 

SB 1606 relating to Public Records/Title Insurance/Department of Financial Services by Senator Thad Altman

SB 1606 would provide an exemption from public records requirements for financial information, such as revenue, loss and expense data, which is supplied periodically by a licensed title insurance agency to the Florida Department of Financial Services (“DFS”) in order to assist the agency in analyzing title insurance premium rates, title search costs and the financial viability of the title insurance industry in the State. Requires that the information be supplied to the DFS by a specified date.  Effective date:  contingent

 

SB 1468 relating to Title Insurance by Senator Thad Altman

SB 1468 would assign the Florida Division of Title Insurance (“Division”) to the Florida Department of Financial Services and deem that references in the Florida Insurance Code pertaining to title insurance refer to the Division. The bill would require any person who holds a license as a title agent to complete a minimum of 10 hours of continuing education courses every two years in Florida-specific title insurance and escrow management courses approved by the Division.  Requires each title insurance agency to have a separate agent in charge at every agency location.  Effective date:  July 1, 2011

 

 

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

 

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