Florida Property and Casualty Association Members: Feedback Needed on Property Insurance Deregulation Amendment to SB 1330; Report on Senate Committee on Banking and Insurance Actions Today
Mar 16, 2011
Florida Property and Casualty Division Members:
Please note that a proposed amendment to SB 1330 is attached for review. The amendment, drafted by the Property Casualty Insurers Association of America, would remove reinsurance provisions from SB 1330, which provides for an unregulated premium for certain property insurance carriers. SB 1330 was passed today by Florida’s Senate Committee on Banking and Insurance (“Committee”).
Please review the draft and send comments to Katie Webb (kwebb@cftlaw.com) at Colodny Fass.
A summary of today’s Committee meeting is below.
Florida’s Senate Committee on Banking and Insurance Passes Three Insurance Bills
During its meeting today, March 16, 2011, Florida’s Senate Committee on Banking and Insurance (“Committee”) heard and unanimously passed SB 1252 by Senator Chris Smith relating to Persons Designated to Receive Insurer Notification.
Senator Ellyn Bogdanoff was concerned that, under the provisions of the bill, parties who have an interest in property covered by an insurance policy would not receive notice of policy changes.
A representative of FCCI Insurance Group explained that the practice of notice to the first named insured is the most common practice nationwide, and was the practice in Florida until two years ago, when the Florida Office of Insurance Regulation (“OIR”) changed its interpretation of the law. The FCCI representative also explained that, if SB 1252 were to become law, other insureds and loss payees would still receive notice of policy changes under different sections of the law.
Other bills taken up and acted upon today by the Committee included:
SB 1330 relating to Residential Property Insurance, which was passed by the Committee. The bill provides for an unregulated premium for certain property insurance carriers.
During discussion on SB 1330, Senator Alan Hays said he believes this provision will increase the competition in Florida’s insurance market.
Senator Chris Smith wanted to know that there are safeguards in place to ensure that these unregulated policies wouldn’t be priced in a manner that would discriminate against purchasers based on race. Committee Chairman Garrett Richter assured Senator Smith that discriminatory actions of that type will not be tolerated by the OIR.
Senate Memorial 1344 by Senator Anitere Flores would request the Internal Revenue Service to reconsider proposed Rules relating to the reporting requirements of foreign interests. Senator Flores indicated that she fears these proposed Rules would cause billions of dollars of capital to leave the country. Senator Chris Smith asked whether the federal government would lose its ability to monitor funds of enemies of the state or foreign criminals without the proposed Rules. Chairman Richter answered that there are myriad federal regulations that cover that type of activity.
SB 1332 by Senator Richter, which the Committee passed unanimously, would modernize Florida’s banking system and bring the law in line with recent federal banking reforms. SB 1332 passed unanimously.
CS/SB 740 by Senator Joe Negron relating to Motor Vehicle Licenses also passed the Committee. The bill clarifies the law protecting automobile dealership franchises after the DMV v. Yamaha opinion, which said that amendments to the Florida Dealer Act do not apply to dealers with franchise agreements dated prior to the effective date of the amendment. The bill was passed by the Committee.
SB 1426 relating to Health insurance by Senator Hays was passed as a Committee Substitute. The bill deletes obsolete provisions of law.
To view complete materials from the meeting, click here.
Should you have any comments or questions, please contact Colodny Fass.
During its meeting today, March 16, 2011, Florida’s Senate Committee on Banking and Insurance (“Committee”) heard and unanimously passed SB 1252 by Senator Chris Smith relating to Persons Designated to Receive Insurer Notification.
Senator Ellyn Bogdanoff was concerned that, under the provisions of the bill, parties who have an interest in property covered by an insurance policy would not receive notice of policy changes.
A representative of FCCI Insurance Group explained that the practice of notice to the first named insured is the most common practice nationwide, and was the practice in Florida until two years ago, when the Florida Office of Insurance Regulation (“OIR”) changed its interpretation of the law. The FCCI representative also explained that, if SB 1252 were to become law, other insureds and loss payees would still receive notice of policy changes under different sections of the law.
Other bills taken up and acted upon today by the Committee included:
SB 1330 relating to Residential Property Insurance, which was passed by the Committee. The bill provides for an unregulated premium for certain property insurance carriers.
During discussion on SB 1330, Senator Alan Hays said he believes this provision will increase the competition in Florida’s insurance market.
Senator Chris Smith wanted to know that there are safeguards in place to ensure that these unregulated policies wouldn’t be priced in a manner that would discriminate against purchasers based on race. Committee Chairman Garrett Richter assured Senator Smith that discriminatory actions of that type will not be tolerated by the OIR.
Senate Memorial 1344 by Senator Anitere Flores would request the Internal Revenue Service to reconsider proposed Rules relating to the reporting requirements of foreign interests. Senator Flores indicated that she fears these proposed Rules would cause billions of dollars of capital to leave the country. Senator Chris Smith asked whether the federal government would lose its ability to monitor funds of enemies of the state or foreign criminals without the proposed Rules. Chairman Richter answered that there are myriad federal regulations that cover that type of activity.
SB 1332 by Senator Richter, which the Committee passed unanimously, would modernize Florida’s banking system and bring the law in line with recent federal banking reforms. SB 1332 passed unanimously.
CS/SB 740 by Senator Joe Negron relating to Motor Vehicle Licenses also passed the Committee. The bill clarifies the law protecting automobile dealership franchises after the DMV v. Yamaha opinion, which said that amendments to the Florida Dealer Act do not apply to dealers with franchise agreements dated prior to the effective date of the amendment. The bill was passed by the Committee.
SB 1426 relating to Health insurance by Senator Hays was passed as a Committee Substitute. The bill deletes obsolete provisions of law.
To view complete materials from the meeting, click here.
