Comprehensive Florida Property Insurance Package Amended, Rolls to Third Reading in Senate Today
Apr 27, 2011
CS/CS/CS/SB 408, the comprehensive property insurance package, was taken up on Second Reading by the Florida Senate today, April 27, 2011.
Various amendments to CS/CS/CS/SB 408 were adopted and the bill, as amended, was ordered engrossed and rolled over for Third Reading.
A complete summary of the related floor activity will be forthcoming.
With 94 amendments having been filed to CS/CS/CS/SB 408 as of its being heard this morning, 24 of those were filed today or yesterday.
Following is a partial list of amendments considered today and the Senate’s actions on each:
ADOPTED: Amendment 136604, sponsored by Senator Garrett Richter, is a technical amendment relating to the definition of “structural damage” as it relates to sinkholes
FAILED: Amendment 173446, sponsored by Senator Mike Fasano, is a technical amendment that would effectively mandate insurers to “make available, for an appropriate additional premium, coverage for sinkhole losses on any structure.”
WITHDRAWN: Amendment 208910, by Senator Miguel Diaz de la Portilla, would specify that the Florida Public Hurricane Loss Projection Model fee schedule is meant specifically for insurer access to, and use of the Public Model, and that this fee would be calculated to cover the operation and maintenance of the Model, not the administrative costs associated with that access.
WITHDRAWN: Amendment 216520 by Senator Arthenia Joyner revises the requirements for public housing authority self-insurance funds and provides an exception.
ADOPTED: Amendment 453922 by Senator Chris Smith specifies “all” of the respective findings, opinions and recommendations of the insured’s (as opposed to CS/CS/CS/SB 408’s specification of the insurer’s) professional engineer or professional geologist as to the cause of distress to the property and the findings, opinions and recommendations of the insurer’s professional engineer in sinkhole-related land and building stabilization and foundation repair set forth by s. 627.7072 as presumed to be correct.
ADOPTED: Amendment 283390 (to Amendment 453922) also by Senator Smith, changes “insured’s” back to “insurer’s” as applicable to the involvement of professional engineers in sinkhole-related land and building stabilization and foundation repair.
ADOPTED: Amendment 343842 by Senator Smith specifies that public adjusters must also make available to insurers the written estimates they are required to retain for five years.
WITHDRAWN: Amendment 365730 by Senator Fasano contains various sinkhole claim-related provisions, such as specifying the payment of additional living expenses and establishing that cosmetic damage consisting of hairline to one-sixteenth-inch cracks to nonstructural building components is not covered unless accompanied by structural damage. The amendment also defines “structural damage” and provides additional educational requirements for “professional engineers.”
ADOPTED: Amendment 407132 by Senator Ronda Storms deletes the exception for managing general agents solely representing a single domestic insurer in regard to section 626.7452,F.S. relating to authority for the examination of managing general agents.
FAILED: Amendment 415180 by Senator Smith revises the statute of limitations language in CS/CS/CS/SB 408 from three years to five years for supplemental or re-opened windstorm or hurricane damage claims.
FAILED: Amendment 445890 by Senator Storms relates to rate filing certification.
WITHDRAWN: Amendment 455150 by Senator Joyner deletes provisions in CS/CS/CS/SB 408 relating to reinsurance for public housing authorities.
ADOPTED: Amendment 488760 by Senator Richter provides a licensure exemption for claims adjusters servicing guarantee mortgages with regards to policies covering the mortgaged properties.
WITHDRAWN: Amendment 497744 by Senator Fasano provides that, in the event of a loss for which a dwelling or personal property is insured on the basis of replacement costs, the insurer shall pay the replacement cost without reservation or holdback of any depreciation in value, whether or not the insured replaces or repairs the dwelling or property.
FAILED: Amendment 544312 by Senator Fasano would require that, if a homeowner suffers structural damage or a catastrophic ground cover collapse, the insurer must repair such damage or loss.
WITHDRAWN: Amendment 577456 by Senator Smith would delete the entire section of CS/CS/CS/SB 408 relating to legislative intent in regard to sinkhole claims.
WITHDRAWN: Amendment 691464 by Senator Smith that would have changed the effective date of CS/CS/CS/SB 408 was withdrawn.
ADOPTED: Amendment 762998 by Senator Fasano would simplify the educational requirements for “professional engineers” to only a bachelor’s degree or higher in engineering.
REPLACED BY SUBSTITUTE AMENDMENT: Amendment 782618 by Senator Smith would insert the following paragraph at the close of CS/CS/CS/SB 408: Section 31. The amendments made by this act in sections 22, 23, 24, 25, 26, 27, and 28 do not apply to insurance claims made with an insurer before February 1, 2011, but do apply to claims made with an insurer on or after that date.
ADOPTED: Amendment 926644 by Senator Diaz de la Portilla specifies that the fees charged for private sector access and use of the Florida Public Hurricane Loss Projection Model shall be the reasonable costs associated with the operation and maintenance of the model by the Florida Office of Insurance Regulation (“OIR”), and that such fees do not apply to the OIR’s access and use of the Model.
Should you have any questions or comments, please contact Colodny Fass.