Florida Senate Budget Committee Temporarily Passes Comprehensive Property Insurance Reform Package, Approves Memorial Bill Urging Congress Not to Impose Reinsurance Tax
Mar 15, 2011
At its meeting today, March 15, 2011, the Florida Senate Committee on Budget (“Committee”) considered CS/CS/SB 408, the comprehensive residential property insurance package, among other bills that included SB 484, a memorial bill that urges Congress not to impose new taxes on foreign companies providing reinsurance to the United States.
After discussing CS/CS/SB 408 and considering five of the 14 amendments that had been filed to it, the Committee temporarily passed the bill.
Following is a listing of amendments to CS/CS/SB 408 that were acted upon by the Committee:
PASSED–Sponsored by Senator Mike Fasano, Committee Amendment 749848 would permanently impose a restriction that any property insurance rate filing would have to be made under the “file and use” standards. Based on the sunsetting of current law, property insurers are now permitted to utilize the “use and file” procedures for any rate filing, including those requesting a rate increase. The amendment would now preclude “use and file” as a procedure to implement a rate increase.
FAILED–Committee Amendment 867916 would remove a provision in CS/CS/SB 408 instating a three-year statute of limitations on claims arising from hurricane or windstorm damage, according to Senator Fasano, who also sponsored this amendment.
WITHDRAWN–Committee Amendment 850230 relating to property and casualty emergency assessments by Senator Fasano
WITHDRAWN–Committee Amendment 546352 relating to public adjuster certification and advertising by Senator Fasano
During discussion on Senator Fasano’s Committee Amendment 536388, which would remove language from CS/CS/SB 408 allowing insurers to not provide wind mitigation discounts to policyholders if the insurer’s profits are reduced, Chairman J.D. Alexander suggested that the Committee temporarily pass amendment 536388, as well as CS/CS/SB 408, and then attempt to finish other bills on today’s agenda.
To view additional amendments filed to CS/CS/SB 408, click here.
Later in the meeting, the Committee unanimously voted to pass SB 484, after which Senator Alan Hays said, “(Reinsurance) is a vital part of the Florida property insurance market and we don’t want any excessive fees put on our constituents.”
To view the meeting packet and other related information, click here.
Should you have any questions or comments, please contact Colodny Fass.