Florida Senate Omnibus Insurance Bill Filed Today, February 20, 2013

Filed today, February 20, 2013, by Florida Senator Jeff Brandes, Senate Bill 1046 relating to Insurance has been dubbed as this year’s “Omnibus” insurance bill.

To view complete bill information on SB 1046, click here.

Its House of Representatives’ companion legislation, HB 635, was filed on February 12 by State Representative Katie Edwards.

If enacted, SB 1046 would affect the following, among other provisions:

• Amend s. 215.555,F.S. by deleting the future repeal of an exemption of medical malpractice insurance premiums from emergency assessments imposed to fund certain obligations, costs and expenses of the Florida Hurricane Catastrophe Fund and the Florida Hurricane Catastrophe Fund Finance Corporation;
• Amend s. 316.646, F.S. to authorize a uniform motor vehicle proof-of-insurance card to be in an electronic format
• Amend s. 320.02, F.S. to authorize insurers to furnish uniform proof-of-purchase cards in an electronic format for use by insureds to prove the purchase of required insurance coverage when registering a motor vehicle
• Amend s. 624.413, F.S. by revising a specified time period applicable to a certified examination that must be filed by a foreign or alien insurer applying for a certificate of authority
• Amend s. 626.321, F.S. to provide that a limited license to offer motor vehicle rental insurance issued to a business that rents or leases motor vehicles encompasses the employees of such business
• Amend s. 626.601, F.S. by revising terminology relating to investigations conducted by the Florida Department of Financial Services (“DFS”) and the Florida Office of Insurance Regulation (“OIR”) with respect to individuals and entities involved in the insurance industry
• Amend s. 626.99175, F.S. to delete provisions requiring registration of life expectancy providers. SB 1046 would also delete related procedures, qualifying criteria and violations.
• Amends s. 627.062, F.S. to require the OIR to use certain models or averages of certain models to estimate hurricane losses when determining whether the rates in a rate filing are excessive, inadequate or unfairly discriminatory
• Amends. 627.0628, F.S. by increasing the length of time during which an insurer must adhere to certain findings made by the Florida Commission on Hurricane Loss Projection Methodology with respect to certain methods, principles, standards, models or output ranges used in a rate finding; providing that the requirement to adhere to such findings does not limit an insurer from averaging together the results of certain models or output ranges under specified circumstances
• Amends s. 627.072, F.S. by authorizing retrospective rating plans relating to workers’ compensation and employer’s liability insurance to allow negotiations between certain employers and insurers with respect to rating factors used to calculate premiums
• Repeals s. 627.3519, F.S. relating to an annual report from the Florida Financial Services Commission to the Florida Legislature of aggregate net probable maximum losses, financing options and potential assessments of the Florida Hurricane Catastrophe Fund and Citizens Property Insurance Corporation
• Amends s. 627.4133, F.S. to delete provisions that require extended periods of prior notice with respect to the nonrenewal, cancellation or termination of certain insurance policies; prohibiting the cancellation of certain policies that have been in effect for a specified amount of time except under certain circumstances
• Amends s. 627.4137, F.S. to add licensed company adjusters to the list of persons who may respond to a claimant’s written request for information relating to liability insurance coverage
• Amends s. 627.421, F.S. to authorize the electronic delivery of certain insurance documents
• Amends s. 627.43141, F.S. to authorize a notice of change in policy terms to be sent in a separate mailing to an insured under certain circumstances; requiring an insurer to provide such notice to insured’s insurance agent
• Amends s. 627.701, F.S. to revise requirements to issue or renew personal lines residential property insurance after a certain date
• Amends s. 627.7015, F.S. to revise the rulemaking authority of the DFS with respect to qualifications and specified types of penalties covered under the property insurance mediation program
• Creates s. 627.70151, F.S. to provide criteria for an insurer or policyholder to challenge the impartiality of a loss appraisal umpire for purposes of disqualifying such umpire
• Amends 627.706, F.S. to authorize the inclusion of deductibles applicable to sinkhole losses in property insurance policies covering nonresidential buildings. The bill would also revise the definition of the term “neutral evaluator.”
• Amends s. 627.7074, F.S. to require the DFS to adopt rules relating to certification of neutral evaluators
• Amends s. 627.736, F.S. to revise the time period for applicability of certain Medicare fee schedules or payment limitations
• Amends s. 627.745, F.S. to revise qualifications for approval as a mediator by the DFS. SB 1046 would also provide grounds for the DFS to deny an application or revoke approval of a mediator or neutral evaluator.
• Amends s. 627.952, F.S. to delete a fidelity bond requirement applicable to certain nonresident general lines agents who are licensed as surplus lines agents in another state
• Amends ss. 627.971 and 627.972, F.S. to include licensed mutual insurers in financial guaranty insurance corporations
• Amends s. 628.901, F.S. to revise the definition of the term “qualifying reinsurer parent company” to delete obsolete language
• Amends s. 628.909, F.S. providing for applicability of certain provisions of the Florida Insurance Code to specified captive insurers
• Amends s. 634.406, F.S. to revise criteria authorizing certain premiums of certain service warranty associations to exceed their specified net assets limitations. SB 1046 also would revise requirements relating to contractual liability policies that insure warranty associations

At this time, SB 1046 has not been referred to any Senate committees.  If ultimately enacted, the bill would become effective upon becoming a law.

Its companion, HB 635, has received referrals to the House Insurance and Banking Subcommittee, Government Operations Appropriations Subcommittee and Regulatory Affairs Committee.

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