Governor Signs Insurance-Related Bills, Among Others on May 27, 2010

 

The following insurance-related bills passed during the 2010 Florida Legislative Session were signed today by Governor Charlie Crist (to view complete bill information, click on the hyperlinks below):

 

CS/1^st Eng. SB 2046 relating to Employee Leasing Companies

Effective July 1, 2010, the bill provides the following changes related to the regulation of employee leasing companies (“ELCs”) in Florida:

• Streamlines the approval process for a change of ownership by providing that a purchase or acquisition of a licensed ELC does not require prior approval from the Florida Board of Employee Leasing Companies (“Board”) if the controlling person of the ELC maintains a controlling person license under Florida law.
• Revises disciplinary actions associated with delinquent licenses (licenses not renewed in time). It eliminates the requirement that delinquent licenses automatically become void 30 days after the renewal date when the renewal fees are not paid.  It also provides that the delinquent license would be subject to disciplinary action by the Board instead of becoming automatically void.
• Clarifies that the existence of an employee leasing arrangement would not affect the eligibility of an ELC, a client company or a leased employee for local or state tax incentives or other economic benefits.

 

HB 7019 relating to the Mortgage Guaranty Trust Fund

Effective July 1, 2010, HB 7019 creates the Mortgage Guaranty Trust Fund (“Trust Fund”) within the Florida Office of Financial Regulation.  Funds credited to the Trust Fund must be used to pay claims against loan originators, mortgage brokers and mortgage lenders pursuant to Florida law.

The Trust Fund shall be terminated on July 1, 2014.  However, it must be reviewed prior to its termination.

 

HB 7121 relating to Open Government Sunset Review/Hurricane Loss and Exposure Data

Current law provides a public record exemption for reports of hurricane loss data and associated exposure data that are specific to a particular insurance company, as reported by an insurer or a licensed rating organization to the Florida Office of Insurance Regulation or a center at a state university (currently Florida International University).

Hurricane loss data and associated exposure data is defined as the type, age, wind mitigation features and location of each property insured; the amount and type of coverage written on each of those properties; the amount, date and type of damage paid for by the insurer on each property; and the amount of any reserves held by an insurer for future payments or expenses on damages associated with the date or dates of occurrence of hurricanes.

The bill removes the repeal date, thereby reenacting the public record exemption. Beginning October 1, 2011 and each subsequent October 1, the bill requires the Florida International University center that develops, maintains, and updates the public model for hurricane loss projections to publish a report summarizing loss data and associated exposure data. The report must be submitted to the Governor, the President of the Senate and the Speaker of the House of Representatives and will serve as a tool for the public and policymakers in understanding the types of structures, mitigation features, insurance coverage and hurricane-related damages in each of Florida’s 67 counties.

 

HB 7217 relating to Florida Hurricane Catastrophe Fund Emergency Assessments

HB7217 continues the exemption of medical malpractice insurance premiums from the FHCF emergency assessment for three years, from May 31, 2010 to May 31, 2013. Medical malpractice insurance premiums were subject to FHCF’s emergency assessments from 1993 (when the FHCF was created) until 2003, when an exemption was enacted. The exemption was initially enacted for three years, until May 31, 2007, but was extended for another three years in 2006, until May 31, 2010.  Because the bill extends the exemption another three years, until May 31, 2013, the FHCF will not be able to assess medical malpractice insurance for fund deficits until after May 31, 2013.

The other bills signed today included:

CS/HB 173 relating to Tax on sales, Use and Other Transactions
CS/CS/SB 366 relating to Retail Sales of Smoking Pipes and Devices
CS/HB 449 relating to Sanctions for Certain Court Pleadings    
SB 502 relating to Special Investigators
CS/HB 551 relating to Public Records and Meetings/County/Complaints on Conduct/Disclosure
CS/SB 704 relating to Capital Felonies
CS/HB 731 relating to Commercial Transactions
SB 808 relating to Murder/Unlawful Distribution of Methadone    
CS/CS/SB 998 relating to Trust Administration 
CS/SB 1012 relating to Juvenile Justice Facilities and Programs 
SB 1150 relating to Registration/Farm Labor Contractors and Employees     
CS/CS/SB 1152 relating to Funeral, Cemetery and Consumer Services Act
CS/CS/HB 1237 relating to Probate Procedures      
HB 1401 relating to Export of Goods, Commodities, & Things of Value to Foreign Countries 
CS/CS/HB 1411 relating to Foreclosures     
CS/CS/CS/SB 2086 relating to Consumer Debt Collection          
CS/HB 7109 relating to Tax Refund Program for Qualified Target Industry Businesses 
CS/HB 7157 relating to Taxation
CS/HB 7179 relating to Qualifying Improvements to Real Property
CS/HB 7205 relating to Professional Sports Franchises  
HB 7219 relating to Corporate Income Tax  
HB 7243 relating to Environmental Control 

 

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

 

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