FPCA Homeowners Division Members: Recap — Colodny Fass Representatives Meet With Florida Department of Financial Services Officials On SB 408 Provisions Pertaining to Neutral Evaluators
Sep 28, 2011
Florida Property and Casualty Association Homeowners Division Members:
On Wednesday, September 28, 2011, Maria Abate and Trevor Mask of Colodny Fass, along with other representatives in the insurance industry met with Florida Department of Financial Services (“DFS”) officials Dennis Silverman and Ashley Mayer regarding the attached sinkhole memorandum recently issued by the DFS to neutral evaluators.
The memorandum establishes guidelines for the neutral evaluation process. In doing so, it purports to interpret many of the changes to the neutral evaluation process that were passed in Senate Bill 408 during Florida’s 2011 Legislative Session. The insurance industry representatives at today’s meeting respectfully requested the DFS to reconsider the contents in the memorandum, because it asserts one-sided conclusions that, at best, should be left up to a court to decide.
A discussion ensued on the legal precedent supporting the position that many of the conclusions in the memorandum may be inaccurate. Further, concerns were raised that this memo has been and will continue to be used by plaintiffs’ attorneys filing sinkhole claims as evidence of the Legislature’s intent. However, the memorandum establishes policies that are arguably inconsistent with the language and legislative intent in Senate Bill 408.
Ms. Mayer noted that DFS officials will consider the concerns expressed in the meeting by the industry representatives. She did not provide details as to the next steps the DFS may take. However, we expect the DFS to take some action based on the meeting. The content or structure of said action and a definitive time frame of its release was not provided.
Colodny Fass will continue to remain involved in this issue and keep you informed as additional information becomes available. In the meantime, please feel free to contact this office if you have any questions or comments.
