FPCA Homeowners Division: Proposals for 2009 Legislative Session and Meeting Schedule Update

The next FPCA Homeowners Division conference call is scheduled to be held on Thursday, November 6, 2008 at 10:00 a.m. The call-in number for this meeting is: 800.369.1285; conference code: 89572#.

During the November 6 meeting, the FPCA will discuss members’ Legislative proposals and review other political updates.

Pursuant to earlier discussions, the FPCA is requesting members’ proposals on the following issues for use during the 2009 Legislative Session.

The following five topics are of particular importance:

1. Citizens Property Insurance Corporation (“Citizens”)
2. Florida Hurricane Catastrophe Fund (“FHCF”)
3. Claims handling issues (e.g. public adjusters, reopening claims, payment time frames, capping contractors’ overhead and profit, etc.)
4. Rate filing issues (due to the FPCA’s antitrust limitations, please be generic in your comments on this matter)
5. Litigation reforms

Representative Dean Cannon (R – Winter Park), House Speaker Designate 2010 – 2012, has agreed to meet with FPCA representatives in late November or early December to review the organization’s Legislative priorities.  Representative Cannon has experience in the insurance industry and has expressed an interest in proposing legislation that would shrink Citizens and the FHCF.  

Prior to the November 6 meeting, the FPCA is asking each member to list his or her evaluation of the top two or three problem areas presented by each of the above topics, and include a proposed solution or alternate approach for each problem. 

So that all feedback may be considered during the upcoming meeting, please send all comments to Katie Webb at kwebb@cftlaw.com no later than November 4, 2008. 

Comments previously received from Members include:

1. Preserve the FHCF layer for limited apportionment companies
2. Reduce the FHCF’s TICL layer
3. Lower the FHCF attachment point from $6 billion to $3 billion
4. Change the consumer choice provision of Florida law to state that if an insured does not reject coverage from a take-out company in writing, then the policy will automatically be removed from Citizens and placed with the take-out company
5. Eliminate the Citizens rate freeze and implement a glide-path rating structure for Citizens’ rates
6. FIGA assessments and filing recoupment