FPCA Homeowners Division Update: Florida House Leadership Leaning Toward Scaled-Back Omnibus Property Insurance Reform Package
Mar 25, 2011
Florida Property and Casualty Association Homeowners Division Members:
As reported on the call this morning, March 25, 2011, Colodny Fass representatives met with Florida House Insurance and Banking Subcommittee Chairman Bryan Nelson; State Representative John Wood, sponsor of HB 803; and State Representative Jim Boyd, sponsor of HB 1243, earlier today.
The Legislators advised that House Leadership is now more inclined to pass a more scaled-back omnibus property insurance reform package than what was previously drafted.
Below are issues that Colodny Fass anticipates may be included in a scaled-back package, as well as issues we do not anticipate being included.
In addition, attached are two “sinkhole fix amendments.”
Please review and provide any comments you may have to Katie Webb (kwebb@cftlaw.com) at Colodny Fass.
The following issues ARE expected to be included in a scaled-back omnibus property insurance reform package:
- Increased capital and surplus (same as SB 2044)
- Public Adjuster reforms (same as SB 2044)
- Three-year claim filing deadline (same as SB 2044)
- Actual Cash Value/Replacement Cost Value (“ACV/RCV”) for dwelling
- Requiring insurers to offer sinkhole coverage (but see two proposed “fixes” attached)
The following issues are NOT expected to be included:
- An Annual Insurer Report Card repeal (a separate “repealer” bill contains this provision.)
- Agent-related language on commissions in rate filings
- Transparency reform for submitting additional information in rate filings
- A mitigation “credit/debit” provision
- Provisions for Citizens Property Insurance Corporation (“Citizens”) “surcharge collection” (may be in Citizens bill)
- Shortening of the cancelation/non-renewal period from 180 days to 90
- 45-day “solvency” non-renewal period
- Citizens 45-day “non-renewal” for take-outs
- Ability to use “notice of change” instead of non-renewing for policy changes
- 90-day claims payment on supplemental claims
- Florida Hurricane Catastrophe Fund “clarification” on covered losses
- Removal of the Citizens’ High-Risk Account “choke-down”
- ACV/RCV for contents
- A provision requiring a change in CPAs from five to seven years
Colodny Fass is working to have these important provisions restored and will continue to provide progress updates.
As always, please do not hesitate to contact us should you have any questions or concerns.
