Florida Senate Budget Subcommittee on General Government Appropriations Passes Comprehensive Residential Property Reform Bill (SB 408), Memorial Bill on Taxing of Foreign Reinsurers (SM 484)
Mar 11, 2011
The Florida Senate Budget Subcommittee on General Government Appropriations (“Subcommittee”) amended and unanimously passed CS/SB 408 as a committee substitute this morning, March 11, 2011. To view the complete meeting packet and access a podcast of this meeting, click here.
Senator Mike Bennett presented the CS/SB 408 to the Subcommittee, inasmuch as the bill sponsor, Senator Garrett Richter, was unable to attend the meeting.
CS/SB 408 was amended to shorten the claims filing deadline for commercial residential policies from five years to three years. The bill was also amended to allow insurers to set premiums and coverage limits on sinkholes.
After the traditional amendatory process, Senators Jack Latvala and Tony Hill asked for the process to be re-opened because of their concern with allowing the bill to move forward while it still contained a provision that would allow supplemental information requested by the Florida Office of Insurance Regulation for a rate filing to not be certified by company officers.
Trial attorney representatives in attendance at today’s Subcommittee meeting testified that removing this requirement was equivalent to allowing insurers to lie in their supplemental information. In the interest of preventing the bill from being temporarily postponed, Senator Bennett accepted the amendment. However, both Senators Latvala and Hill expressed their understanding that it may be necessary to change the language again for practical purposes.
Senators Latvala and Miguel Diaz de la Portilla expressed a great deal of concern regarding the changes being made to the claim filing timeline, as well as to changes in provisions for replacement cost value versus actual cash value. However, Senator Latvala indicated his understanding that public adjusters and attorneys have created a fraudulent industry surrounding property insurance and that a solution was necessary.
CS/SB 408 passed unanimously as a committee substitute.
The Subcommittee also passed Senate Memorial Bill 484 by Senator Alan Hays, which would request Congress to not tax foreign reinsurers.
Both bills are on the March 15 agenda for consideration by the Senate Committee on Budget.
Should you have any questions or comments, please contact Colodny Fass.