Florida Senate Banking and Insurance Committee April 16 Meeting Recap

     The Florida Senate Banking and Insurance Committee met on April 16, 2007.  Included in the discussion were several bills relating to insurance.  The Committee’s discussion and actions upon these bills are described below. 

     Further, Scott R. Wallace was approved by the Committee for appointment as the Executive Director of Citizens Property Insurance Corporation (“Citizens”).

Scott R. Wallace Confirmation

     The Senate Banking and Insurance Committee approved the appointment of Scott R. Wallace as the Executive Director of Citizens Property Insurance Corporation.  Mr. Wallace provided the committee with opening remarks and then answered questions from the Committee members.  Mr. Wallace addressed concerns from Senator Bill Posey by noting that Citizens would remain operational in the event another catastrophic storm hits Florida.  He also addressed concerns by Senator Don Gaetz by stating that Citizens would be amenable to a market with increased competition from private insurance companies should policy and circumstances dictate. 

     In order to complete the approval process, Mr. Wallace next must be recommended for confirmation by the Senate Ethics and Elections Committee and, lastly, confirmation by the full Senate.

Florida Senate Banking and Insurance Committee
Bill Actions

     SB 1742 by Senator Mike Fasano relating to Surplus Lines/Citizens Property Insurance passed 6-1.  The bill requires a surplus lines agent that sells surplus lines homeowners insurance to provide a premium rate quote from Citizens to all customers who are eligible for coverage through Citizens before selling a surplus lines policy.  An amendment by Senator Rhonda Storms passed requiringn retail or producing agents to advise the insured in writing that coverage may be available and less expensive from Citizens.  SB 1742 next moves to the full Senate.

     SB 2782 by Senator Bill Posey relating to Examination of Insurers passed 8-0.  This bill changes the frequency of an insurer’s required financial examination by the Office of Insurance Regulation (“OIR”) to at least once every five years, with the exception of domestic insurers that have held a certificate of authority for less than three years.  Those who have held the certificate less than three years would continue to be subject to an annual review.  SB 2782 has two additional committees of reference.

     SB 2702 by Senator Dave Aronberg relating to Insurance Representatives/Branch Agency passed 6-0.  The bill allows a properly-licensed and appointed agent affiliated with a financial institution, securities dealer, or funeral establishment to be designated as the agent in charge of more than one agency location, subject to the limitations specified in the bill.  SB 2702 has one additional committee of reference.

     SB 1204 by Senator Mike Bennett relating to Workers’ Compensation/Employment Deviation was temporarily postponed.  The bill provides that an employee who is injured while deviating from the course of employment is not eligible for workers’ compensation benefits unless the deviation is in response to an emergency and designed to save life or property.  SB 1204 has two committees of reference.

     SB 636 by Senator Al Lawson Jr. relating to nonresident Title Insurance Agents passed 8-0.  The bill amends the laws regarding rates and charges for title services.  Specifically, the bill allows an agent to rebate or abate his share of the title insurance premium and eliminates the restriction against an agent from lowering charges for related title services below cost.  The bill also requires that in order to obtain and maintain a Florida title insurance license, nonresident applicants must pass the Florida license examination and take Florida continuing legal education courses.  Further, the bill provides for technical and clarifying changes to the definitions under title insurance contracts.  Two amendments were adopted.  The first amendment clarifies the content of estoppel letters sent to mortgagors, deletes the authority for the Financial Services Commission to adopt rules establishing charges, adds title insurance agents for the purpose of assigning liability for damages, and revises other definitions.  The second amendment amends provisions relating to abatement or rebate of attorney’s fees and other charges or fees.  SB 636 has one additional committee of reference.

     SB 1188 by Senator Evelyn Lynn relating to Health Insurers/Life Support passed 9-0.  This bill passed with a strike-everything amendment clarifying that an insurer may provide for payment of benefits directly to a recognized hospital, licensed basic life support provider, or advanced life support provider for ambulance, hospital or medical services.  The American Health Insurance Plan and the Florida Insurance Council testified against the bill.  SB 1188 bill has two additional committees of reference.

     SB 1624 by Senator Mike Bennett relating to Insurance/Public Construction passed 8-0.  This bill passed with a strike-everything amendment that amends current statutory provisions relating to the use of an owner-controlled-insurance program (“OCIP”) by a public agency.  Specifically, the bill amends the definition of “specified contracted work site” as a single continuous system; provides that contractors, including any owner or principal acting as a general contractor, and subcontractors performing work under a construction project insured by an OCIP are not required to individually satisfy eligibility requirements for large deductible workers’ compensation rating plans; and defines the capital infrastructure improvement program.  SB 1624 has one additional committee of reference.

     SB 1754 by Senator Bill Posey relating to Debt Cancellation Products passed 7-0.  This bill passed with a strike-everything amendment that provides for bundling of insurance and warranty plans for communications services such as cellular phones.  Proponents of the bill maintain that it will benefit consumers by providing for increased competition.  SB 1754 has three additional committees of reference.

 

     These bills and amendments are available for your review at the Florida Senate’s website, which is www.flsenate.gov.

     The above information is intended to be a brief summary of pertinent items and proposed legislation discussed during Committee meetings and is not intended to be a comprehensive analysis of any particular bills.  We can provide additional information upon request.  Please do not hesitate to contact this office should you need additional information.