Property Insurance Bill Filed Today Would Afford Partially Unregulated Rates to All Florida Insurers
Dec 8, 2009
State Representative Bill Proctor filed House Bill 447 relating to Residential Property Insurance today, December 8, 2010. This action preceeds a media conference scheduled for today at noon, during which Representative Proctor and Senator Mike Bennett will discuss the bill.
To view HB 447 as filed, click here.
The companion bill, which will be sponsored by Senator Bennett, is expected to be released shortly.
Generally, HB 447, which has been identified as the “Consumer Choice” bill, will afford the opportunity to charge partially unregulated rates to all Florida insurers.
The bill would also prohibit Citizens Property Insurance Corporation from making regular assessments for deficits until after levying the full amount of its policyholder surcharge. It also prohibits specified insurers from purchasing the Temporary Increase In Coverage Layer option coverage from Florida Hurricane Catastrophe Fund.
A press release on the issue from Senator Mike Bennett is reprinted below.
Should you have any questions or comments, please contact Colodny Fass.
“Consumer Choice” homeowners’ insurance bill returns for 2010
Revised measure designed to revitalize private property insurance market
TALLAHASSEE, Fl, December 8, 2009 – The “Consumer Choice” homeowners’ insurance bill, which would allow consumers to decide for themselves if they want to have their home protected by a private insurer offering market-based rates, has been revised and re-filed for the Spring 2010 annual session. “The new version of the bill has been retooled to address the continuing erosion of the competitive private market,” said Senator Mike Bennett, R-Bradenton.
“Last Spring, we learned that consumer choice in homeowner’s insurance is broadly supported by Florida’s voters, the business community, most state newspaper editorial boards and the vast majority of state legislators,” Bennett said. “Since the 2009 legislative session, we’ve seen an even further deterioration of our private insurance market, as testified to by Commissioner McCarty recently, as well as the insolvency of three Florida insurance companies, all without any storms.”
“Accordingly, the Legislature is ready to bring new insurance choices to Florida’s homeowners in 2010,” Bennett added. The revised version of the bill will allow all private homeowners’ insurers to offer a policy at a market-based rate the insurer believes is needed to adequately protect the consumer.
This is a change from the 2009 version of the bill, which only applied to about 20 large, financially-strong insurers. Opening the bill to all homeowners’ insurers resolves a specific criticism that the 2009 bill might have hurt emerging Florida domestic companies – the small start-up insurers entering Florida’s property insurance market.
The 2010 version of the Consumer Choice bill retains all of the strong consumer protections and disclosures of its predecessor, and the state’s Office of Insurance Regulation maintains all other existing regulatory authority over homeowners’ insurers. Purchasing a Consumer Choice policy is completely voluntary.
Bennett notes that since Governor Crist vetoed the bill four months ago, a series of public revelations have made the bill’s passage even more critical now. The majority of the new private capital touted has now accurately been attributed to unlicensed surplus lines insurers that charge unregulated rates and generally don’t serve average Florida homeowners. Additionally, Commissioner McCarty recently testified that 102 of Florida’s 210 licensed property insurers are losing money – even though no hurricanes have hit the state since 2005 – and said that rates need to rise.
“Last session, 85 percent of the members of the Senate and House voted in favor of this bill,” Bennett said. “At the same time, a Florida Chamber of Commerce poll found that 60 percent of voters supported the bill and wanted Governor Crist to sign it into law. The people have spoken – next session, the Legislature needs to again pass the Consumer Choice bill, and this time the Governor should join with us. We must work together to help reverse the current trend and restore Florida’s deteriorating private homeowners market.”
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