House Property Insurance Package Passes Final Committee; Ready for Floor Consideration
Apr 20, 2009
HB 1495, the Florida House of Representatives’ property insurance omnibus bill, was amended and passed today, April 20, 2009, by the House Full Appropriations Council (“Council”) on General Government and Health Care.
The amendments adopted to HB 1495 would effect the following:
1) Change the dates of the Florida Hurricane Catastrophe Fund (“FHCF”) contract years
2) Require the FHCF to estimate claims paying capacity twice per year
3) Transfer part of the funds resulting from a Citizens Property Insurance Corporation (“Citizens”) rate increase to the Insurance Regulatory Trust Fund, rather than General Revenue Fund
4) Provide for mitigation grant funding from the Insurance Regulatory Trust Fund
5) Authorize federal loan dollars for condominium “weatherization”
6) Effect changes to condominium associations’ mitigation requirements
An amendment that was offered regarding public adjusters was withdrawn during today’s Council meeting, as well as an amendment that would have authorized agents to charge a $5 service fee for processing installment payments.
Following adoption of the amendments, the Committee discussed the bill.
State Representative Julio Robaina spoke against the bill, arguing that policyholders will not be able to afford the rate increase on Citizens policies.
State Representative Bryan Nelson, the original sponsor of HB 1495, noted that if the Legislature does nothing, then Citizens’ rates will increase substantially more than what is authorized by the bill.
Other Committee members expressed some concerns that the My Safe Florida Home Program grants do not afford coverage for the entire state, but rather only for those homes in the designated windborne debris zone.
Yet other legislators expressed concern about increasing property insurance rates during a time of economic downturn. Comments were made that, while HB 1495 is a good piece of legislation, it is being offered at a bad time.
In response, State Representative Kevin Rader commented that the State’s subsidized insurance structure was “Florida’s Ponzi scheme,” and stated that he believed that Citizens rates should be moved toward actuarial soundness, otherwise Florida will not have money to pay claims when a storm hits.
In closing on the bill, State Representative Nelson noted that activities regarding public adjusters have served to increase costs by over $1 billion since Hurricane Wilma, and that if the goal is to reduce rates, then public adjuster issues should be addressed.
The meeting packets for today’s Council meeting include (click on the hyperlinks to access the packets):
Several amendments adopted to HB 1495 were late-filed; copies of these amendments will be forwarded shortly.
Today’s Council meeting was the final committee of reference for HB 1495, which now proceeds to the full House for consideration.
Eight “no” votes were registered during passage of HB 1495 by the 35-member Council.
For additional information on Florida’s legislative process and terminology, click here.
Should you have any questions or comments, please contact Colodny Fass.
To unsubscribe from this newsletter, please send an email to ccochran@cftlaw.com.