Governor Crist Signs Insurance-Related Bills Into Law

 

Governor Crist signed various insurance-related bills into law on May 11, 2010.  These bills are summarized below.

 

Should you have any questions or comments, please contact Colodny Fass.

 

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 7089 relating to the Florida Self-Insurers Guaranty Association

HB 7089 Removes the scheduled repeal under the Open Government Sunset Review Act of exemptions from public records and public meetings requirements for the Florida Self-Insurers Guaranty Association.  Effective Date:  October 1, 2010.

 

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.

 

The following bills were also signed by Governor Crist on May 11, 2010:

• HB 1 relating to Statutes of Limitations
• HB 11 relating to Crimes Against Homeless Persons
• 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 105 relating to Civics Education
• CS/CS/HB 163 relating to Prepaid Wireless Telecommunications Service
• CS/HB 317 relating to Threats
• 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
• CS/CS/HB 747 relating to Treatment of Diabetes
• CS/HB 751 relating to Automatic Renewal of Service Contracts
• CS/CS/HB 787 relating to Child Abduction Prevention
• CS/HB 821 relating to International Commercial Arbitration
• CS/HB 951 relating to Public Safety
• HB 985 relating to Peddling at Camp Meetings
• CS/CS/HB 1005 relating to Corrections
• 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 1363 relating to Postsecondary Student Fees
• CS/HB 1493 relating to Career Offenders
• HB 7037 relating to Education
• HB 7087 relating to Open Government Sunset Review/Guardians Ad Litem
• HB 7093 relating to Open Government Sunset Review/Domestic Security Oversight Council
• CS /HB 7103 relating to Agriculture
• HB 7111 relating to Information Held by Guardians Ad Litem
• HB 7117 relating to Open Government Sunset Review/Board of Funeral, Cemetery & Consumer Services
• HB 7167 relating to Open Government Sunset Review/Commission for Independent Education
• HB 7237 relating to Postsecondary Education

 

 

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