House Amends Property Insurance Package, Caps Citizens Rate Increases
Apr 23, 2009
The Florida House of Representatives’ omnibus property insurance package, HB 1495, was considered, amended and rolled to third reading on the House Floor this afternoon, April 23, 2009.
HB 1495 was briefly explained by its original sponsor, State Representative Bryan Nelson.
Significant questions and discussion followed regarding the Citizens rates, potential assessments, the Florida Hurricane Catastrophe Fund, and current credit markets.
In responding to a question by State Representative Kevin Rader, Representative Nelson agreed that the current Florida insurance market is comparable to a “Ponzi scheme.”
Some South Florida legislators advocated a smaller increase in Citizens Property Insurance Corporation (“Citizens”) rates, rather than the 10 percent “glide-path” provided for in the current bill.
An amendment limiting Citizens rate increases to 15 percent rather than 25 percent was adopted, as well as an amendment attempting to make public adjuster licensure more difficult. Other, less contentious amendments also were adopted.
SB 1950, the Senate version of the omnibus property insurance package is expected to be heard on the Senate Floor later today (beginning at 6:15 p.m., EST). To view the live Webcast, click here.
A full report will be forthcoming.
Should you have any questions or comments, please contact Colodny Fass.
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