Florida Insurance Legislative Advance: What You Need To Know For March 17 Events At the Capitol

 

Various bills of particular interest to the insurance industry will be considered by the Florida Legislature on March 17, 2010 as it continues with committee hearings.

 

Senate Committee on Banking and Insurance

During its meeting tomorrow, the Senate Committee on Banking and Insurance will consider the following insurance-related bills:

If passed, SB 740 by Senator Mike Bennett would require the Florida Financial Services Commission to reconfirm the appointment of the Florida Insurance Commissioner every two years.  

An amendment filed to SB 740, also by Senator Bennett, would strike the bill’s requirement that the Florida Governor and Chief Financial Officer must be on the prevailing side of the confirmation.

Wednesday’s hearing represents the first SB 740’s two committee references. 

Also on the agenda is SB 2264 by Senator Bennett, which would provide more stringent solicitation restrictions on public adjusters, as well as require property insurance claims to be reported no later than three years after the date of the occurrence. 

Senator Bennett has expressed his desire to secure an agreement between insurer and public adjuster representatives on the content of SB 2264 prior to the meeting.  At this time, the public adjusters tentatively have agreed to an amendment that would narrow some provisions and clarify others.  Restrictions on solicitations and advertisements would be maintained, but disclaimers on written solicitations would be required, as would a claim to be reported within three years after a windstorm event occurs.  The amendment also would provide penalties for subcontractors who attempt to adjust claims outside of their field of expertise.  While the amendment has not been officially filed at this time, Colodny Fass will send a draft copy when it becomes available.

 

House Insurance, Business and Financial Affairs Committee

Also on March 17, the House Insurance, Business & Financial Affairs Committee agenda will include HB 447 by State Representative Bill Proctor and various other sponsors.  Known as the “Consumer Choice” bill, it would provide for residential property insurers to offer policies using rates that are regulated for inadequacy and other factors, but not for excessiveness.  To access the legislative analysis of HB 447, click here. 

However, as previously reported, State Representative Bill Proctor plans to file a strike-all amendment to HB 447, which will draw from SB 2044, the Senate’s omnibus property insurance bill, along with State Representative Bryan Nelson’s House version of the same, HB 1341.

A copy of the draft amendment to HB 447 is attached. 

While this amendment has not yet been filed, it also is possible that there will be several amendments to this strike-all amendment and/or a substitute amendment filed.  Colodny Fass will continue to provide updates as events occur.

 

House Criminal Justice Impact Conference

The House Criminal Justice Impact Conference will meet on March 17 as well, during which it will hear HB 1447 relating to Insurance Fraud and Abuse to determine what fiscal impact the bill’s passage may have, if any.

Sponsored by State Representative Bryan Nelson, the bill, if passed, would be known as the “Comprehensive Insurance Fraud Investigation and Prevention Act of 2010.”  It would address fraud by requiring certain health care clinic licensure and exemption documents to include certain notice, as well as provide for reports of suspected health care clinic licensure violations and information sharing.  Under the provisions of the bill, certain clinic violations would be grounds for disciplining health care professionals and the definition of “fraudulent insurance act” would include submitting clinic licensure or exemption documents.  

Further, HB 1447 allows residential policies to provide that full replacement cost is paid only when property is repaired or replaced.  It would also allow insurers to hold back a sum reflecting the difference between actual cash value and replacement cost.   Other revisions made by the bill relate to optional sinkhole coverage, mitigation verification and PIP-related forms and other provisions relating to the prevention of insurance fraud.   If passed, HB 1447 would be effective October 1, 2010.

 

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

 

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