Insurance-Related Legislative Action: Wednesday, May 2

May 2, 2007

With two days remaining in the 2007 Regular Legislative Session, there are still several outstanding insurance issues.

Regarding property insurance, Senate Bill 1866, also known as the “Glitch Bill” was heavily debated and amended today in the Senate. Note that some of the below-listed amendments adopted onto SB 1866 today are per the Governor’s request in the event that the Citizens Bill he is supporting (Senate Bill 2498) does not pass the House.

Meanwhile, SB 2498 passed the Senate and was sent to the House. At this time, it appears either the Glitch Bill or the Governors’ Citizens Bill will pass, but not both. The final outcome for either bill is unclear at this time.

The automobile no-fault issue is currently gridlocked in the House. The Senate passed Senate Bill 1880 on May 1, 2007 and sent the bill to the House for its consideration.  Subsequently, an amendment by Representative Ellyn Bogdanoff was filed to replace the Senate language of a PIP/no-fault extension with “emergency care coverage,” but the bill was not considered.  Among other provisions, Rep. Bogdanoff’s amendment allows PIP/no-fault to sunset and limits the mandatory emergency care coverage to $10,000, including inpatient and outpatient treatment, and also limits chiropractic coverage to $3,000. It is not clear whether a no-fault bill will pass this Session.

In addition to the aforementioned amendments, we have provided a list of other insurance-related bills and amendments below that were considered today, Wednesday, May 2, 2007:

 

Citizens Glitch Bill

SB 1866 by Senator Bill Posey was read a second time and several amendments were adopted. The amendments include:

Sen. Cary Baker– changes the definition of “diligent effort” regarding surplus lines. With his amendment, those with residential structures having replacement costs over $1 million only have to be rejected for insurance once to seek this coverage.

Sen. Bill Posey– provides intent language that Citizens is an integral part of the state and not a private company.

Sen. Mike Fasano– requires insurers to notify their insureds that coverage may be available and less expensive with Citizens.

Sen. Mike Fasano– authorizes the Office of Insurance Regulation to establish a pilot program regarding sinkhole coverage.

Sen. Bill Posey– provides a property insurer must make available, at the option of the policyholder, an exclusion of windstorm or hurricane coverage.

Sens. Jeff Atwater and Ted Deutch– requires residential property insurers to pay or deny claims or a portion of claims within 90 days of receiving notice.

Sen. Jeff Atwater– forbids insurers from including any interest payments in their rate base and used to justify a rate change.

Sen. Jeff Atwater– exempts Citizens immunity for breach of contract causes of action regarding payment of attorney’s fees.

Sens. Jeff Atwater and Ted Deutch– failure to pay undisputed amounts of partial or full benefits within 30 days are considered unfair methods of competition and unfair or deceptive acts or practices.

Sen. Mike Bennett– amends the provision regarding creditors of the Residential Property and Casualty Joint Underwriting Association.

Sen. Jeremy Ring– regarding the Florida Building Code.

Sen. Dave Aronberg– regarding manufactured housing policies.

Sens. Jeff Atwater and Ted Deutch– defining the term “claim” for purposes of provisions requiring that an insurer acknowledge communications regarding claims.

Sens. Jeff Atwater and Ted Deutch– postponing the repeal of the exemption from emergency assessments for medical malpractice insurance premiums.

Sen. Bill Posey– authorizing a licensee to take the final examination for continuing education courses by various specified methods.

 

Citizens Property Insurance Corporation

SB 2498 by Senator Rudy Garcia passed the Senate with three amendments and now moves to the House. The bill contains many of the provisions that Governor Crist has been supporting which would make Citizens more competitive with the private insurance market. Two substantive amendments include:

Sen. Ted Deutch– providing that domestic and other insurers writing only manufactured housing policies are eligible to receive a surplus note in a specified amount.

Sen. Jeremy Ring– regarding the Florida Building Code.

 

Hurricane Damage Mitigation

Senate Bill 1864 by Sen. Posey passed the Senate and now goes to the House. An amendment by Senator Mike Bennett was adopted that requires “opening protections” on homes over $750,000 to be eligible for Citizens.

 

Insurance- Branch Agencies

House Bill 1381 by Representative Garrett Richter passed the Senate and now moves to the House. The bill authorizes certain agencies designated as branch offices to file application for registration in lieu of licensure; provides exemption from required written examination to certain applicants for licensure as claims adjuster; authorizes certain licensed agents to be agent in charge of branch locations under certain circumstances; revises requirements for identification of insurers, agents, & insurance contracts.

 

Examination of Insurers

House Bill 1549 by Representative David Rivera passed the Senate and now moves to the House. The bill extends interval at which insurers must be examined by OIR; deletes provisions allowing office to accept audit report from certified public accountant in lieu of conducting its own examination; revises guidelines for conducting such examinations.

Workers’ Compensation

Senate Bill 746 by Senator J.D. Alexander passed the House and the Senate and is available for the Governor’s signature. The bill provides standard of proof for first responders having injury or disease caused by exposure to toxic substance; provides that any adverse result or complication re smallpox vaccinations is an injury by accident arising out of employment; provides standard of proof in cases involving occupational disease; provides for continuation of permanent total supplemental benefits after age of 62 for certain first responders.

House Bill 7169 by Representative Ron Reagan was read a second time in the Senate. The bill provides exemption from public records requirements for certain records of the Florida Workers’ Compensation Joint Underwriting Assoc., Inc. (FWCJUA); authorizes release of confidential & exempt records under certain circumstances; provides exemption from public meetings requirements for portions of meeting of association’s board of governors or subcommittee thereof during which confidential & exempt records are discussed.

Senate Bill 1894 by Sen. Posey passed the House and Senate and is now available for the Governor’s signature. The bill provides requirements for joint underwriting plan of insurers which operates as FWCJUA; revises restrictions on who may serve on board; requires that market-assistance plan be periodically reviewed & updated; requires that excess funds received by plan be returned to state; provides for applicability of specified statutes regulating ethical standards

 

Insurance/Public Construction Projects

Senate Bill 1624 passed the House and Senate and is now available for the Governor’s signature. The bill requires purchase of owner-controlled insurance in connection with a public construction project if program maintains completed operations insurance coverage for no less than 10 years; exempts contractors & subcontractors working under construction project insured by said insurance program from individually satisfying eligibility requirements for large deductible workers’ compensation rating plans.

 

Finally, we have attached individual files outlining bills that passed the House and Senate today.  Both MS Word 2007 and HTML file versions are enclosed for your convenience.

Please feel free to contact this office should you have any comments or questions regarding any of the above matters.

 

 

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