Florida Senate Omnibus Property Insurance Package Amended Onto SB 2044 by 7-4 Vote
Mar 10, 2010
The Florida Senate’s omnibus property insurance package was considered, amended and passed as a strike-everything amendment to SB 2044 today, March 10, 2010, by the Senate Committee on Banking and Insurance (“Committee”).
Committee Chairman Garrett Richter explained the amendment, after which the Committee considered various other amendments that had been filed to it since it was last heard on March 3.
An amendment that would delete the actual cash value payment provision from the omnibus legislation was explained by its sponsor, Senator Ronda Storms, who added that, although the Florida Office of Insurance Regulation is opposed to this amendment, she believes the benefit of immediately reimbursing policyholders for claims outweighs the potential that an insured will “take the money and run.” After some debate, Senator Storms withdrew the amendment, explaining that she did not believe that enough Committee members would vote to adopt it.
The Committee then considered and adopted an amendment filed by Senator Chris Smith that further defines the term “valid complaint” for use in calculating annual insurer report card grades.
An amendment by Senator Mike Fasano that would reinsert a provision into the omnibus package requiring insurers to certify all rate filings under new expedited rate filing procedures contained in the same legislation.
Testifying in favor of Senator Fasano’s amendment was Reggie Garcia of the Florida Justice League, an association of plaintiffs’ attorneys.
Chairman Richter remarked that insurers do not control reinsurance rates and cannot certify that these rates are sound.
Mr. Garcia referenced a rate filing previously made by Allstate Insurance, and reminded that a similar provision of existing law currently allows the Florida Office of Insurance Regulation (“OIR”) to review certain documents related to Allstate’s rate filing. Chairman Richter pointed out that OIR officials have told him that they don’t think an amendment like this is necessary. Nevertheless, the amendment was adopted.
Further consideration of the omnibus amendment was temporarily postponed at that point while other legislation was taken up. The Committee then resumed its debate of the omnibus package, taking up another amendment filed by Senator Storms that would remove the actual cash value holdback provision in the omnibus amendment and allow an insurer to re-inspect a home and cancel its policy if claims-related repairs are not completed.
Trial lawyers testified in favor of the Storms amendment, while insurer representatives testified against it. The Committee engaged in substantial debate over whether a policyholder should receive “up-front” replacement cost value for contents coverage. Ultimately, Senator Storms’ amendment failed, as did two similar amendments she also had filed.
Senator J.D. Alexander offered an amendment that would require public adjusters to disclose certain income, but withdrew it.
The Committee then approved SB 2044 as amended by a vote of 7 to 4. (Please note that other reports published reports did not indicate the late arrival Senator Alex Villalobos, who voted against the bill.)
To view complete information on SB 2044, including hyperlink access to each amendment filed to the bill, click here.
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