Florida House Insurance, Business and Financial Affairs Policy Committee Report: March 10
Mar 11, 2009
On Tuesday, March 10, 2009, the Florida House of Representatives Insurance, Business and Financial Affairs Policy Committee (“Committee”) met and considered several insurance-related bills.
In actions of particular importance to the insurance industry, the Committee voted in favor of House Bill 419 by the Civil Justice and Courts Policy Committee and Representative Ellyn Bogdanoff (R-Fort Lauderdale) relating to Condominiums, and House Bill 903 by Representative Anitere Flores (R-Miami) relating to Workers’ Compensation Attorney’s Fees.
The following is a brief summary of the discussions and actions on these bills. For a complete analysis of the bills and amendments, the Committee packet may be viewed by clicking here.
House Bill 419 relating to Condominiums
This bill, also known as the “Condominium Glitch Bill,” passed with six amendments that were all sponsored by Representative Bogdanoff. The bill is intended to correct several unintended consequences of language relating to insurance that passed in 2008 requiring condominium unit owners to purchase individual unit owner coverage, along with requiring owners to include their association as a named insured.
As amended, the bill better resembles its Senate counterpart. Among other provisions, HB 419, as amended, revises a section of law related to loss assessment coverage and eliminates a provision requiring coverage.
Representative Carl Domino (R-Juno Beach) raised the issue of the condominium association boards’ ability to require insurance coverage in their bylaws. Representative Bogdanoff responded that while the law would not preclude that, the coverage would likely be unavailable
Representative John Wood (R-Haines City) also expressed concerns with a provision in the bill requiring certain education and its impact on board member participation. Insurance agent and condominium association representatives testified in support of the bill.
House Bill 903 relating to Workers’ Compensation Attorney’s Fees
Representative Flores explained House Bill 903, which attempts to clarify the workers’ compensation statutes as a result of issues arising from the Florida Supreme Court Decision of Emma Murray v. Mariner Health.
In this case, the Court held that the workers’ compensation statute relating to attorneys’ fees was ambiguous and invalidated the statutory percentage formula for the award of claimant’s attorneys against employers in certain cases.
Several amendments were filed to HB 903, but all were withdrawn. Representative Flores noted that she has been working with the interested parties to determine a compromise that balances the desire for lower attorneys’ fees while not compromising accessibility to the adjudication system; however, a consensus has not been reached at this time. Therefore, HB 903 likely will be amended as it moves through the legislative process. Compromise provisions included allowing the parties to contract their terms of representation and a flat fee for cases involving only medical benefits
Several Democratic Committee members expressed their concern about knowingly voting on a bill that will change after it passes the Committee. Also, Representative Ed Homan (R-Temple Terrace) raised concerns with the bill because he felt it would be detrimental to patients.
Many groups testified in opposition to the bill, including the Florida Justice Association, the Firefighters Association, individual workers’ compensation attorneys, the Florida Bar and injured workers. Also, insurance and business industry representatives testified in support of “fixing” the Emma Murray decision.
Representative Flores closed the meeting by noting that HB 903 “is about keeping jobs.” The bill passed unanimously and, on a motion to by Representative Jim Waldman (D-Coconut Creek), was “retained” in the Committee, meaning it will remain in the Committee for one more meeting.
HB 185 relating to Access to Health Care
HB 185 relating to Access to Health Care by Representative Matt Hudson (R-Naples) also was passed by the Committee.
Should you have any questions regarding the above matters, please contact Colodny Fass.
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