Florida House Answer to Senate Citizens Property Insurance Bill Awaits Third Reading
Apr 26, 2013
CS/CS/HB 909 relating to Property Insurance was heard on Special Order and amended by the full Florida House of Representatives during its Second Reading today, April 26, 2013. It has not yet been calendared for its third reading.
The bill addresses property insurance issues, including assignment of post-loss benefits, required reporting on non-catastrophic losses for Citizens Property Insurance Corporation (“Citizens”), public adjuster fees and conduct, and sinkholes.
As amended, CS/CS/HB 909 is considered to be the House response to the Senate’s much-publicized Citizens-related bill, CS/SB 1770.
A strike-all amendment filed by State Representative Doug Holder that was ultimately adopted today prompted a number of questions on its provisions relating to Citizens’ Coastal Account. The language would prohibit Citizens from insuring newly constructed major structures or substantially improved structures with a building permit application on or after July 1, 2014.
During debate in the House, State Representative Mike Fasano also questioned the bill’s construction-related language, explaining that his constituents who are Citizens policyholders are doing business with Citizens because they cannot find insurance in the private market. Further, requesting factual information from a policyholder is a “scare tactic,” he said, adding that policyholders who cannot find coverage elsewhere shouldn’t be punished for not being able to find it. To illustrate his point, he requested a list of carriers that write coverage in his district.
Among successful amendments filed to CS/CS/HB 909 by Representative Fasano was one containing language to omit surplus lines carriers from participation in the proposed Citizens clearinghouse.
State Representative Bill Hager filed an amendment dealing with “phantom insurance,” which was withdrawn. He filed an additional amendment that would allow private insurers to purchase more reinsurance. This amendment failed.
Two amendments filed by State Representative Jose Diaz that clarify language in the bill regarding renewals were adopted.
To view complete bill information, including hyperlinks to all amendments adopted today, click here.
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