House Passes HB 1001 Relating to Commercial Property Insurance

CS/HB 1001 passed the House today, April 30, 2008, on third reading by 111 yeas and 2 Nays.  The two “Nay” votes were Representatives Paige Kreegel and Susan Bucher. 

An amendment by Representative Richter, which had been filed the day before, was withdrawn prior to passage.  The withdrawn amendment authorized insurers to file a rating plan that aggregates payrolls for workers’ compensation under an owner-controlled insurance program for certain purposes.

CS/HB 1001 – relating to Commercial Property Insurance by Jobs & Entrepreneurship Council and Representative Garrett Richter, along with co-sponsors Representative Hays; Murzin; Williams and Zapata.  Defines terms “assessable commercial property insurance” and “nonassessable commercial property insurance”; provides rate standards for nonassessable commercial property insurance; provides that nonassessable commercial property insurance is not subject to determination that rate is excessive or unfairly discriminatory; excludes nonassessable commercial property insurance from definition of “subject lines of business”; specifies that insurers issuing nonassessable commercial property insurance policies are not assessable for portions of assessments from which such policies are exempt; authorizes insurers offering assessable commercial property insurance policies to offer potential insureds nonassessable commercial property insurance policies; authorizes owners of commercial property to purchase nonassessable commercial property insurance policies for that property; requires application for nonassessable commercial property policy to contain specified disclaimer; requires declarations page of nonassessable commercial property policy to contain specified disclaimer.
Effective Date: July 1, 2008  

Additional information regarding HB/CS 1001 will be provided as it becomes available.

 

Should you have any questions or comments, please do not hesitate to contact this office.

To unsubscribe from this newsletter, please send an email to ccochran@cftlaw.com.