Crash Tax Ban, Sinkhole Bill Among Those Signed Today By Florida Governor
Jun 16, 2009
Among 32 bills signed today, June 16, 2009, Florida Governor Charlie Crist signed the following insurance-related bills into law:
- SB 742 relating to Sinkhole Losses
- SB 2282 relating to First-Responder Services
- SB 2252 relating to Professional Liability Claims
SB 742 relating Sinkhole Mitigation
With the Governor’s signature today, SB 742 relating to Sinkhole Losses becomes law on January 1, 2010. The bill allows insurers to non-renew policies in Pasco and Hernando counties and offer renewals that exclude sinkhole coverage to those policyholders, but include “catastrophic ground cover collapse.” The bill also requires insurers to consider local ordinances relating to sinkhole mitigation when setting insurance rates. These ordinances will be subject to a Florida Building Commission review over a four-year period.
This bill creates section 627.7063, F.S., which mandates the creation of a building code grading schedule that evaluates the effectiveness of sinkhole loss prevention ordinances in reducing the number of sinkholes and the severity of sinkhole losses.
Note: “Catastrophic ground cover collapse” coverage was created during Special Session 2007-A as an alternative to sinkhole insurance, which had become increasingly costly in areas of the state with high exposure to sinkholes and related claims. Catastrophic ground cover collapse coverage does not provide reimbursement for losses due to the mere settling or cracking of a foundation, structure or building. It is defined as a geological activity that:
- Results in the abrupt collapse of the ground cover that is clearly visible to the naked eye;
- Results in structural damage to the building and its foundation; and
- Results in the insured structure being condemned and ordered to be vacated by the appropriate governmental agency.
CS/SB 2282 relating to First-Responder Services (“Accident Tax Fees”)
As many as two dozen Florida municipalities and counties that currently charge fees for costs incurred for services provided by first-responders to motor vehicle accidents will no longer be able to do so with the Governor’s approval of SB 2282 today.
Effective July 1, 2009, the bill bans Florida counties and cities from imposing fees or obtaining reimbursement for costs incurred for services provided by first-responders to a motor vehicle accident beginning. An exemption is made for transportation and treatment provided by ambulance services and, as previously amended during the committee process, for the clean-up of certain hazardous materials.
Originally sponsored by State Senator Mike Bennett, CS/SB 2282 defines “first-responders” as law enforcement officers, firefighters, emergency medical technicians, paramedics and volunteer first-responders.
Florida counties and municipalities are afforded broad constitutional and statutory home rule powers with expansive legislative and service delivery authority. During 2008, Senate Committee on Banking and Insurance legislative staff studied the issue of local governments imposing fees for providing police and fire services to persons involved in motor vehicle accidents and published a report entitled: Cities and Counties Charging “Accident Response” Fees to Drivers and Insurers (Issue Brief 2009-303).
SB 2252 relating to Professional Liability Claims
SB 2252 is expected to simplify regulation of liability insurance claims reporting by eliminating duplicate and frivolous claims reports. With his signature today, it becomes law on July 1, 2009.
Originally sponsored by State Senator Carey Baker (R-Eustis), SB 2252 clarifies existing law regarding closed claim reporting by defining the term “claim” and specifying circumstances when a claim will be considered “closed.”
SB 2252 substantially amends section 627.912, Florida Statutes, in which it changes the conditions under which a claim against professional liability insurance must be reported to the State. The bill provides a statutory definition for when a claim exists and creates a new set of reporting criteria for entities that must report claims activity to the Florida Office of Insurance Regulation (“OIR”).
According to the OIR, the changes effected by the passage of SB 2252 will improve the quality of data it collects, as well as the OIR’s regulation of the affected parties at no additional cost.
Should you have any questions or comments, please contact Colodny Fass.
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