Florida House of Representatives Passes Committee Substitute for Omnibus Insurance Bill (CS/HB 1101)

A Committee Substitute for Committee Substitute for House Bill 1101, the omnibus insurance bill sponsored by State Representative Mike Horner, passed the Florida House of Representatives today, February 29, 2012, by a vote of 114 to 0.

The Senate companion bill, CS/CS/SB 1620 by Senator Garrett Richter, was heard in the Senate Budget Subcommittee on General Government Appropriations on February 28, 2012.

Both bills make changes to various types of insurance, and make the following changes:

• Expand the coverage of travel insurance and expand who can be licensed to sell travel insurance;
• Exempt certain employees of licensed insurance agents or licensed insurance adjusters selling portable electronics insurance from having to be licensed as an insurance adjuster;
• Allow the Florida Department of Financial Services to give licensure exams in Spanish;
• Provide a definition of “rebate” to be used in sinkhole repairs;
• Exempt salvage motor vehicle dealers from having to carry garage liability or personal injury protection (“PIP”) insurance;
• Allow cancellation of an auto insurance policy within the first 60 days for non-payment of premium when the check or other method of payment presented is dishonored;
• Prevent an insurer that provides PIP benefits to an occupant of a taxicab, or to someone struck by a taxicab, from having a right of reimbursement against the owner or registrant of the taxicab;
• Conform the interest on overdue PIP benefits to the rate of interest on judgments generally;
• Allow the receiver of an insolvent insurer to pay interest on claims and specifies the priority of the interest payment;
• Require Citizens Property Insurance Corporation (“Citizens”) to offer a basic perils policy and specifies methods of replacement cost valuation to be used by Citizens;
• Allow surplus lines insurers with a Demotech Financial Strength Rating of A or better to participate in the Citizens’ depopulation program as long as other conditions of participation are met, and if HB 245 passes;
• Make alteration of a certificate of insurance a violation of the unfair trade practices act.
• Adds the language from CS/HB 409 by State Representative Ed Hooper relating to alien insurers which clarifies that alien insurers with affiliates are not disqualified from obtaining an exemption for a certificate of authority, allow for trusts to also qualify for an exemption;
• Adds the language from CS/CS/379 by State Representative Jeanette Nunez relating to captive insurers which provides a structure for captive formations and requirements;
• Provide clarification that a nonrenewal notice need not be provided if the insurer offers to renew the policy; and
• Provide that mandated benefits do not apply to limited benefit health insurance policies such as dental, vision or long-term care and allow small bank health insurance pools to cover 50 or fewer employees.

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

Click here to follow Colodny Fass on Twitter (@CFTLAWcom)

To unsubscribe from this newsletter, please send an email to Brooke Ellis at bellis@cftlaw.com.