Insurance Legislative Update: Thursday, April 17

Following is an update on several major insurance-related bills proceeding through the legislative process.

HB 565 relating to Insurance Representatives was read for the second time on the House floor today, April 17, 2008.  The bill prohibits insurers, including Citizens Property Insurance Corporation (“Citizens”), from requiring appointees to complete specified continuing education courses offered by such insurers and Citizens in order for the appointment to be issued or renewed.  The bill also allows insurers, including Citizens, to require appointees to attend non-continuing education (“CE”) training and education programs offered by such insurers and Citizens, in order for the appointment to be issued or renewed.  HB 565 allows Citizens to require its employees to take training relevant to his or her employment and to require appointees to take CE courses which pertain solely to its internal procedures or products.  Supported by the Florida Association of Insurance Agents, the bill now contains a fee that agents may collect in certain circumstances.  The Senate version of the bill, SB/CS2 2528, is currently in the Governmental Operations Committee awaiting hearing. 

SB 648 relating to Insurable Interests/Insurance Contracts, which was substituted for HB 375, was read a second time in the House on April 16.  SB 648 states that an insurance contract may not be purchased insuring another person unless the benefits under the insurance are payable to the individual insured, the insured’s personal representative, or a person that had an “insurable interest” in the life of the insured when the contract was entered into.  The bill defines the various circumstances that constitute an insurable interest for purposes of purchasing an insurance contract.  If this bill is read and approved a third time in the House with no amendments, it will go to Governor Crist for for his signature.
 
SB 1018 relating to Property Insurance Appraisal Umpires was heard today by the Senate Governmental Operations Committee, which is the second of the bill’s three committees of reference.  This bill states that, effective June 1, 2009, no person may act as an umpire in conjunction with a loss appraisal clause contained in a residential or commercial residential property insurance policy unless licensed as a property insurance appraisal umpire by the Florida Department of Financial Services. In addition, the bill sets forth procedures governing the appraisal process.  Sponsored by Senator Mike Fasano, SB 1018 was recommended by the Task Force on Citizens Claims Handling and Resolution.  At this time, the House version of the bill, HB 563, has not moved forward in the Legislative process.

 

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

 

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