FPCA Homeowners Division: Immediate Feedback Needed by 1 p.m. Tomorrow (March 10) on Insurance-Related Proposals to be Considered by the Governor’s Office
Mar 9, 2011
Florida Property and Casualty Association Homeowners Division Members:
The Office of Florida Governor Rick Scott has requested that the Florida Property and Casualty Association provide draft legislative proposals on certain insurance-related topics by tomorrow, March 10, 2011.
- Therefore, we are requesting that you immediately review the attached proposals and provide feedback to Katie Webb (kwebb@cftlaw.com) at Colodny Fass no later than 1:00 pm tomorrow (March 10).
The Governor’s Staff plans to review these proposals directly with the Governor tomorrow. The proposals relate to the following:
- Shortening the statute of limitations and claims filing deadline for residential property claims
- Allowing rate flexibility for policies within Citizens Property Insurance Corporation’s (“Citizens”) High-Risk Account (“HRA”)
- Providing for a better mechanism to determine Citizens’ rates by implementing a similar proposal to Louisiana’s Citizens law
- Maintaining the current law on the HRA choke-down
Additionally we need Member feedback on the following concept, on which we ideally need to provide a draft legislative proposal:
- More flexibility on rate and form filings for nonstandard business currently written by Citizens by amending current statutes that require insurers to offer replacement cost coverage on homeowners policies and specifically allowing an insurer to offer actual cash value on older homes and damaged homes, or homes with damaged roofs
Also, the Governor’s Office has made it clear that we should focus on the Asbestos/Litigation fix proposal to address the issue of sinkhole tail claims.
We should have a draft of this combination proposal by tomorrow and will circulate it for review, but in the meantime, please provide feedback on the following conceptual proposal:
Asbestos/Litigation proposal
- Provides a framework to address sinkhole claims and litigation in situations where a trial has not yet begun. Or, in the alternative, to address situations in which claims were filed after the effective date of the legislation. (This is specifically for claims made on expired policies).
- Will require additional evidence supporting when the alleged sinkhole damage occurred and certifications by an engineer regarding the damage to the property.
Additionally, it is recommended that the following litigation reforms are established:
- A “statute of repose,” which would establish a “bright line” cut-off beyond which no lawsuits relating to sinkhole claims can be filed, regardless of the date the insured noticed damage
- Clarify the burden of proof standard for sinkhole claims
- Eliminate one-way attorney’s fees for sinkhole claims
- Eliminate extra-contractual damages for sinkhole claims
- Require additional disclosures on properties with sinkhole claims
- Impose bad faith penalties on claimants who file back-dated sinkhole claims
The following proposals are attached for review:
- 2011 SB 408 Amendment on the HRA
- 2011 SB 407 Amendment regarding Florida Office of Insurance Regulation rates and forms
- 2011 SB 408 Amendment regarding the statute of limitations
- 2011 Citizens bill amendment regarding the HRA reduction
- Citizens rate language suggestion from Louisiana
- 2011 Citizens Bill (1714) word version (redline showing changes)
- 2011 Citizens Bill amendment regarding rates
- 2011 SB 408 Amendment on the HRA
Should you have any questions, please contact Katie Webb (kwebb@cftlaw.com) at Colodny Fass.
