Florida Insurance-Related Legislative Meeting Reports: January 12, 2012

 

The following are recaps of Florida insurance-related legislative meetings held today, January 12, 2012.

 

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

 

Senate Budget Subcommittee on General Government Appropriations Report

The Senate Budget Subcommittee on General Government Appropriations (“Subcommittee”) met today, January 12, 2012. Among other agenda items, the Subcommittee heard SB 578 relating to Depopulation Programs of Citizens Property Insurance Corporation (“Citizens”).

SB 578 would allow surplus lines carriers to take policies out of Citizens. The Subcommittee had myriad concerns with the bill, primarily with the rate impact on consumers and the potential for changes in policy terms. There was also concern with the notice of assumption provided to consumers. However, the bill was passed by the Subcommittee.

Kurt Gurley from the University of Florida provided some brief comments related to the Florida Public Hurricane Loss Model (“Public Model”).  There is an ongoing effort to reduce the Public Model’s dependence on state funding.  An effort will be made to increase marketing of the Public Model to private insurers and reinsurers.

To view the meeting packet, click here.

 

House Economic Affairs Committee Report

Committee Substitute for House Bill 245 sponsored by Representative Jim Boyd, allowing surplus lines insurers to participate in depopulation programs at Citizens, was heard today by the House Economic Affairs Committee. 

Representative Frank Artiles offered an amendment that would have required surplus lines insurers to comply with all coverage requirements that apply to authorized insurers.  The amendment was defeated. 

Representative Boyd offered an amendment to require surplus lines insurers seeking approval to participate in depopulation programs to provide to the Florida Office of Insurance Regulation certain biographical information on officers and directors and other financial information.  This amendment was adopted.  Representative Boyd offered a second amendment that made some technical changes to the bill, which also was adopted by the Committee. 

Much of the questions and debate on the bill centered on the Committee members’ concerns about the unregulated nature of surplus lines insurance policies.  The Committee passed the bill. 

To view the meeting packet, click here.

 

 

 

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.