Florida Hurricane Catastrophe Fund Proof of Loss Form Revised at Insurer Reporting Requirements Rule Hearing Today
Jan 25, 2011
A public hearing was held today, January 25, 2011, to discuss Florida Hurricane Catastrophe Fund (“FHCF”) proposed Rules 19-8.029 and 19-8.030, entitled “Insurer Reporting Requirements” and “Insurer Responsibilities,” respectively. To view the meeting notice, click here.
Colodny Fass attorneys were in attendance at the hearing and participated in the discussions on behalf of insurers.
FHCF Senior Attorney Tracy Allen provided opening remarks and introduced FHCF staff members who were present, including: Chief Operating Officer Jack Nicholson, Director of Operations Anne Bert and Director of Examinations Gina Wilson. A representative of Paragon Strategic Solutions, the FHCF’s Administrator, participated via telephone.
Dr. Nicholson noted that the purpose of the hearing was to hear industry concerns and facilitate moving forward with the proposed Rules.
Ms. Allen reviewed the proposed changes to the FHCF’s Contract Year 2011 Proof of Loss Report Form (“Form”), after which several comments were made regarding proposed changes to the claims file documentation required by the Records Retention Requirements section on Page Two of the Form.
Concern was raised that insurers’ computer systems do not currently capture data relating to attorney fees and/or public adjuster fees. The FHCF officials responded that there was no intention to create new documentation or require systems changes by insurers. Rather, the new requirements were meant to preserve current documents that are already in insurers’ files, even in paper form.
Suggestions included removing this requirement, or requiring a copy of the public adjuster or attorney contract if it was provided to the insurer, rather than requiring the reporting of the “amount” of fees paid. In response, FHCF staff struck the word “amount” and replaced it with “documentation” in their revised draft form.
Dr. Nicholson noted that if the FHCF amendment offered to SB 408 passes at today’s Senate Committee on Banking and Insurance meeting, this issue would become moot.
Discussion took place on the requirement to include documentation of “Amount of loss for each category of coverage (building, appurtenant structure, contents, and additional living expenses).” FHCF staff explained that this information is needed to confirm that amounts were paid by the insurer in accordance with applicable category limits.
Privacy concerns on behalf of the insured were raised with respect to the requirement of “Payment history screen prints,” which may contain personal information of the insured, in addition to payment history.
Discussion also took place regarding the current lack of a specific exemption from public records laws for loss records provided to the FHCF. Dr. Nicholson suggested the need for a public records exemption statute to address such data.
After this debate, the FHCF staff removed the term “screen prints” from this requirement, thereby only requiring “Payment history” in their revised draft Form.
Concern was raised that an insurer’s provision of “Diary/claim notes” to the FHCF could have the unintentional result of the insurer waiving privilege in lawsuits. This requirement also was removed from the Form by FHCF staff.
Similarly, concerns were raised about the Form’s requirement to provide “All adjuster reports.” After discussion, the FHCF staff responded by changing the Form language to require adjuster “estimates” (including public adjuster estimates) rather than “reports.”
Ms. Allen noted that the above-referenced changes would also be reflected in the FHCF Loss Reimbursement Examination – Contract Year 2011 Advance Preparation Instructions, which contain language identical to that in the Proof of Loss form.
The record will remain open for one week so that FHCF staff may consider additional written comments.
Please review the attached revised draft Proof of Loss Form and provide any comments that you may have to Jennifer Erdelyi (jerdelyi@cftlaw.com) at Colodny Fass.
Should you have any comments or questions, please contact Colodny Fass.