Governor Crist Receives Insurance-Related Bills for Consideration by May 15
Apr 30, 2010
After their passage by the Florida Legislature, various insurance-related bills were sent to Governor Crist today, April 30, 2010. The Governor has until May 15, 2010 to sign, veto or let these bills become law without his signature.
CS/CS/CS/HB 159 relating to Guaranty Associations
HB 159 relating to Guaranty Associations would change state laws relating to the Florida Insurance Guaranty Association (“FIGA”), the Florida Workers’ Compensation Insurance Guaranty Association and the Florida Life and Health Insurance Guaranty Association. It also would implement several policies adopted by the National Association of Insurance Commissioners Property and Casualty Insurance Guaranty Association Model Act. The bill would revise FIGA’s structure by consolidating its auto liability and auto physical damage accounts into one account. Further, HB 159 removes the requirement that an insurer must submit a rate filing to pass through an assessment to policyholders. Instead, companies would be allowed to apply a recoupment factor to the premium of the policies subject to the FIGA assessment. Effective date: July 1, 2010.
HB 661 relating to Minimum Surplus Requirements for Mortgage Guaranty Insurers
HB 661 would authorize the Florida Insurance Commissioner, upon written request of a mortgage guaranty insurer, to temporarily permit the insurer to continue writing new business if its risk-to-capital ratio reaches 25 to 1. The request may be granted if the Insurance Commissioner finds that the insurer’s financial position is reasonable in relation to its aggregate insured risk and financial needs (i.e., that the insurer’s resources are adequate to satisfy policyholder claims to continue writing new business). The bill also would permit the Florida Office of Insurance Regulation (“OIR”) to take action against any mortgage guaranty insurer that does not obtain a temporary exception, but continues to write new business after its risk-to-capital ratio reaches 25 to 1. Effective date: July 1, 2010.
CS/CS/HB 885 relating to Life Insurance
HB Bill 885 creates s. 627.4605, F.S., which would provide that an insurer is not required to send notice of replacement life insurance to the current insurer when the replacement policy is issued by the same insurer or an affiliate of the insurer of the policy that is to be replaced. Specifically, notice of replacement life insurance does not need to be sent to the current insurer for transactions involving:
- An application to the current insurer that issued the current policy when a contractual change or conversion privilege is being exercised;
- A current policy that is being replaced by the same insurer pursuant to a program approved by the OIR;
- A term conversion privilege is being exercised among corporate affiliates.
HB Bill 885 also:
- Allows coverage of spouses and dependent children under a group life insurance policy up to the amount for which the employee is insured under the policy;
- Bars the sale or transfer of annuities that were purchased as part of a settlement to satisfy Medicare secondary payer requirements to third parties that are not connected with the settlement; and
- For purposes of group life insurance, prohibits creation of a class of employees consisting solely of employees covered under the employer’s group health plan.
The new section would be consistent with model standards adopted by the National Association of Insurance Commissioners. Effective date: upon becoming law.
HB 7091 relating to Open Government Sunset Review (“OGSR”)/Insurance Claim Data Exchange
HB 7091 repeals a specified provision relating to an exemption from public records requirements for information from the Insurance Claim Data Exchange provided to the Florida Department of Revenue. Saves the exemption from repeal under the OGSR Act. Effective Date: October 1, 2010.
HB 7119 relating to OGSR/Florida Commission on Hurricane Loss Projection Methodology
HB 7119 requires recording of closed meetings of Florida Commission on Hurricane Loss Projection Methodology, or of rate proceedings on insurer rate filings at which confidential and exempt trade secrets are discussed; creates a public records exemption for recording of closed meetings; provides for future legislative review and repeal of an exemption; provides a statement of public necessity. Effective Date: October 1, 2010.
The following bills also were presented to Governor Crist today:
- HB 1 relating to Statutes of Limitations
- HB 11 relating to Crimes Against Homeless Persons
- CS/CS/HB 25 relating to Temporary and Concurrent Custody of a Child
- CS/HB 33 relating to Selling, Giving, or Serving Alcoholic Beverages to Persons Under 21 Years of Age
- HB 53 relating to License Plates
- CS/HB 91 relating to Adult Protective Services
- CS/HB 105 relating to Civics Education
- CS/HB 109 relating to Excise Tax on Documents
- CS/HB 143 relating to An Exemption for Aircraft Assembly and Manufacturing Hangars from Comprehensive Plan Transportation Concurrency Requirements
- CS/CS/HB 163 relating to Prepaid Wireless Telecommunications Service
- CS/HB 263 relating to Department of Highway Safety and Motor Vehicles
- HB 281 relating to Communications Services Tax
- CS/CS/CS/HB 303 relating to Regulation of Real Estate Appraisers and Appraisal Management Companies
- CS/HB 317 relating to Threats
- CS/HB 321 relating to Road Designations
- CS/CS/HB 325 relating to Uniform Traffic Control
- CS/HB 341 relating to H. Lee Moffitt Cancer Center and Research Institute
- CS/CS/HB 399 relating to Motor Vehicles
- HB 521 relating to Interstate Compact on Educational Opportunity for Military Children
- CS/HB 523 relating to Florida Civil Rights Hall of Fame
- HB 525 relating to Statutes of Limitation for Sexual Battery
- CS/HB 573 relating to Physician Assistants
- HB 661 relating to Minimum Surplus Requirements for Mortgage Guaranty Insurers
- CS/CS/HB 747 relating toTreatment of Diabetes
- CS/HB 751 relating to Automatic Renewal of Service Contracts
- CS/HB 765 relating to Animal Protection
- CS/CS/HB 787 relating to Child Abduction Prevention
- CS/HB 821 relating to International Commercial Arbitration
- CS/CS/HB 885 relating to Life Insurance
- CS/HB 889 relating to Biomedical Research
- CS/HB 951 relating to Public Safety
- CS/CS/CS/HB 981 relating to Agriculture
- HB 985 relating to Peddling at Camp Meetings
- CS/CS/HB 1005 relating to Corrections
- HB 1013 relating to Citrus Canker Eradication
- CS/CS/HB 1033 relating to Road Designations
- CS/HB 1059 relating to Public Records
- CS/HB 1279 relating to Assessment of Property for Back Ad Valorem Taxes
- CS/HB 1281 relating to Loan Origination
- CS/HB 1291 relating to Domestic Violence Fatality Review Teams
- CS/CS/HB 1337 relating to Nursing
- CS/HB 1363 relating to Postsecondary Student Fees
- HB 1377 relating to Telecommunications Companies
- CS/HB 1493 relating to Career Offenders
- CS/HB 1547 relating to Lake Ashbury Municipal Service Benefit District
- CS/HB 1551 relating to Black Business Investment Board
- HB 1581 relating to Florida Atlantic University
- HB 7037 relating to Education
- CS /HB 7103 relating to Agriculture
- HB 7237 relating to Postsecondary Education
Should you have any questions or comments, please contact Colodny Fass.
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