FPCA: Feedback Requested on Non-Assessable Residential Property FHCF Exclusion Options
Apr 3, 2009
The Senate Banking and Insurance Committee will consider SB 2036 relating to Residential Property Insurance on Monday, April 6, 2009. As filed, the bill would exclude “non-assessable residential property insurance” from emergency assessments for the Florida Hurricane Catastrophe Fund and states that insurers offering these policies would only be subject to certain rate review standards.
The bill sponsor, Senator Mike Bennett, has indicated that the proposal will be amended significantly. Although its concepts have not been finalized, it is anticipated that the bill will be amended as follows:
References to “non-assessable” policies will be removed and replaced by provisions for the Florida Office of Insurance Regulation to only review rates for inadequacy in exchange for the insurer performing one or more of the following:
- maintaining a certain surplus requirement (lower than $500 million)
- maintaining a certain writing ratio
- guaranteeing renewals
- Being prohibited from purchasing Florida Hurricane Catastrophe Fund Temporary Increase In Coverage Limits coverage; and/or
- requiring insureds to sign a disclosure form on each renewal
Senator Bennett has asked for feedback on these ideas.
Please forward comments to Katie Webb @ kwebb@cftlaw.com