FPCA Homeowners Division: Proposed Committee Substitute Filed for HB 1101 Has Citizens Property Insurance-Related Revisions

Florida Property and Casualty Association Homeowners Division Members:

A Proposed Committee Substitute (“PCS”) has been filed for HB 1101, and is scheduled to be heard by the Florida House of Representatives’ Economic Affairs Committee on Wednesday, February 22 at 9:00 a.m.  To view the PCS, click here.

Please be advised that the PCS contains the following provisions that were not part of the previous version of the bill:

1. A statement that altering a certificate of insurance after it has been issued is evidence of an unfair and deceptive trade practice;
2. Requires, as of January 1, 2013, that Citizens Property Insurance Corporation (“Citizens”) offer an HO-8 policy;
3. Additionally, applicants for coverage in Citizens’ Personal and Commercial Lines accounts will be required to furnish Citizens a sworn affidavit executed by their insurance agent attesting that they were declined by at least three authorized insurers for coverage.
   1. The affidavit must identify the insurers contacted and the rate quoted.
   2. As of January 1, 2013, applicants for Personal Residential Coverage must register with the Florida Market Assistance Plan (FMAP) for a period of 10 days before they can submit an application to Citizens.
   3. The PCS states that, until a line of business achieves actuarial soundness, no agent is entitled to the payment of commission.  It also allows Citizens to develop and implement an agent performance management program.
4. Requires Citizens to accept certain replacement cost valuations;
5. States that, if a policyholder accepts a rebate for sinkhole repairs, the rebate voids the insurance policy and the policyholder must return the rebate to the insurer; additionally states that the person performing the repairs who offers a rebate has committed insurance fraud;
6. Essentially amends HB 379 relating to Captive Insurers into the PCS

Should you have any questions or comments, please contact Katie Webb (kwebb@cftlaw.com) at Colodny Fass.

www.FPCAonline.org