FPCA Homeowners Division Members Meet with Florida Office of Insurance Regulation Officials on SB 408 Implementation
Jul 19, 2011
Today, July 19, 2011, on behalf of the Florida Property Casualty Association (“FPCA”), Jim Graganella (Capitol Preferred), Andy Martinez (American Traditions), Byron Wells (Capitol Preferred) and Trevor Mask (Colodny Fassand Abate) met with Florida Office of Insurance Regulation (“OIR”) Officials Belinda Miller, Richard Koon and Anne Ivory regarding the implementation of Senate Bill 408. The meeting primarily centered on the timing of the statutory changes to an insurance policy, a sinkhole presumed factor issued by the OIR and sinkhole rates and insurer solvency.
Ms. Miller suggested the changes in SB 408 such as claim filing deadlines or definitions were intended to take effect immediately in order to apply to existing policies. However, other statutory provisions, judicial decisions or regulations that could prevent the application of a new law to an existing policy would still apply. Keep in mind the opinions of the regulator are not binding on a court.
Ms. Miller and Mr. Koon were extremely hesitant to agree to any presumed factor for sinkhole rates. Ms. Miller noted the OIR actuaries Bob Lee and Ken Ritzenthaler would be available to speak one-on-one with company actuaries if requested.
Mr. Koon indicated that the difficulty with the OIR setting a presumed rate factor is the differing company underwriting criteria. Further, he noted that the problem of current inadequate sinkhole rates, while significant, is not the only issue with insurer sinkhole problems.
These items can be further discussed during our next FPCA meeting. In the meantime, please contact Katie Webb (kwebb@cftlaw.com) at Colodny Fass with any questions or comments.
