Insurance-Related Legislative Committee Activity: March 4-6

 

Today, March 5, 2008, the House Government Efficiency and Accountability Council (“Council”) considered a proposed committee substitute (“PCB”) for House Bill 565 by Representative Bryan Nelson (R-Apopka) relating to Insurance. The amended Bill, which passed the Council favorably by 15-0, removed from the original Bill a provision that would have required a percentage of contributions paid to the Florida Retirement System to be transferred to the Florida Hurricane Catastrophe Fund.

HB 565 amends laws regarding insurance agents and customer representatives, and exempts from the customer service licensing exam applicants who have earned an Associate’s degree from an accredited college with at least nine academic hours in property and casualty insurance classes.

The bill also would prohibit insurers from requiring insurance agents who are not employees or exclusive independent contractors of the insurer to take specified continuing education courses as a condition of appointment.  Additionally, the bill authorizes exams for continuing education correspondence courses to be given without a proctor, provided that the student submits a sworn affidavit that he/she did not receive outside assistance while taking the exam.

Finally, HB 565 establishes a new license for “unqualified insurance consultants” and waives the appointment requirement for said consultants. This legislation will next go to the House Jobs and Entrepreneurship Council.

On March 4, the Senate Banking and Insurance Committee (“Committee”) held its first meeting of the 2008 Legislative Session.  After spending considerable time debating Senate Bill 164 relating to Insurance and Mental Disorders by Senator Victor Crist (R-Tampa), which would require group health insurance providers to cover mental and nervous disorders, the Committee passed SB 164 by 10-1, based on assurances that certain concerns would be addressed in future committees.

The Committee passed Senate Bill 644 relating to the My Safe Florida Home (“MSFH”) Program by Senator Charlie Justice (D-St. Petersburg), which would require inspectors participating in MSFH to be certified or licensed building inspectors, general or residential building contractors, engineers or architects. The inspectors also must have at least two years of experience in residential building inspection or residential construction. SB 644 mandates that insurers accept a uniform mitigation verification form issued by a qualified inspector as valid. This portion of the bill is intended to aid homeowners in accessing mitigation discounts offered by insurance companies.

The Committee additionally passed Senate Bill 818 relating to Financial Services by Senator Mike Bennett (R-Bradenton) that would allow, among other provisions, state-chartered financial institutions to sell debt cancellation contract or debt suspension agreements more readily by explicitly stating that such products are not insurance. The bill would explicitly allow financial institutions to purchase insurance against the risk of financial loss from the use of debt cancellation products. SB 818 also authorizes the sale of guaranteed asset protection products in conjunction with a motor vehicle installment contract or loan.

On March 6, 2008, the House Insurance Committee is scheduled to hear House Bill 269 by Representative Alan Hays (R-Umatilla) relating to Hurricane Preparedness and Insurance, and House Bill 375 by Representative Dorothy Hukill (R-Port Orange) relating to Insurable Interests.

HB 269 will create the Citizens Property Insurance Corporation (“Citizens”) Mission Review Task Force and require Citizens to assist the Task Force. The bill will also require Florida’s Chief Financial Officer to issue a report on the economic impact on Florida of specified hurricanes, and further limits the authority of Florida Building Commission to modify specified codes and standards. Additionally the bill will require counties and municipalities to enforce wind-borne debris protections and structural guidelines.

HB 375 will establish that proceeds from a life, health or disability insurance policy must be paid to the person that is the subject of the insurance policy, or to another person with a close relationship to the insured, such as a family member, affiliated business, and parties to a contract involving the insured.

 

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

 

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