Florida House Amends, Passes CS/CS/CS/SB 408; Bill Now Returns to Senate

The House amended and passed CS/CS/CS/SB 408 on Third Reading today, May 4, 2011.  As previously reported, the House adopted a strike all amendment yesterday on Second Reading.  Today, on Third Reading, additional amendments to the bill were filed by Representatives Wood and Boyd.  Some of these amendments were adopted and following debate, a vote was taken on the bill as amended.  The House voted 85 to 33 to pass the bill.  Because it has been amended by the House, CS/CS/CS/SB 408 will return to the Senate. 

The amendments adopted on Third Reading include provisions to:

• Revise the definition of “losses” with respect to the Florida Hurricane Catastrophe Fund to include “all incurred losses under covered policies, including amounts paid as fees on behalf of or inuring to the benefit of a policyholder” (Amendment 186393)
• Provide that if a covered building suffers a sinkhole loss or catastrophic ground cover collapse, the insured must repair such damage or loss; however, if the insurer’s professional engineer determines that the repair cannot be completed within policy limits, the insurer must pay to complete the repairs recommended by the professional engineer or tender the policy limits to the policyholder (Amendment 376165);
• Correct a drafting error and return to current law regarding assessments (Amendment 409429);
• Remove a provision exempting adjusters who provide claims adjusting services solely to institutions that service or guarantee mortgages with regard to policies covering the mortgaged properties from adjuster licensure requirements (Amendment 786885); and
• Provide that the neutral evaluator’s oral testimony and full report shall be admitted in any action, litigation, or proceeding relating to the sinkhole claim (Amendment 365615).

Amendments that were filed but withdrawn from consideration include:

• Requires that any payment made by Citizens for damage caused by sinkhole must be dedicated entirely to the costs of repairing the structure or remediation of the land (Amendment 031575);
• Prohibit Citizens’ policyholders from engaging the services of a public adjuster until after Citizens has tendered an offer with respect to any claim (Amendment 097287);

During the rather intense debate on the bill, several Representatives voiced their support or opposition to the bill.  Many Representatives in support of the bill cited to facts supporting the need for such legislation and noted that while the bill is not perfect, it is a step in the right direction.  Others decried the bill as anti-consumer with one Representative likening insurance companies to sharks with consumers as the “buckets of chum” for the sharks to gorge themselves on.  In closing on the bill, Representative Wood directly addressed some of the issues raised in debate.  He referred to the cost drivers and the need to reign them in to avoid higher insurance costs.  He asked Representatives to support the bill.

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

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