Repeal of Rule 69O-170.012 relating to Sinkhole Insurance to get Final Public Hearing at October 23, 2012 Florida Cabinet Meeting
Sep 10, 2012
During its October 23, 2012 meeting, the Florida Cabinet will hold a Final Public Hearing to adopt the repeal of Rule 69O-170.012 relating to Sinkhole Insurance.
According to the Florida Office of Insurance Regulation, the Rule has become antiquated and unnecessary due to legislative changes dealing with sinkhole loss that occurred after the Rule was promulgated.
Rule 69O-170.012 prohibits insurers from non-renewing or canceling property insurance policies “on the basis of filing of claims for partial loss caused by sinkhole damage or clay shrinkage.”
The remainder of the Rule states that the aforementioned non-renew or cancelation provisions apply regardless of whether a policy in question has been the subject of a sinkhole or clay shrinkage claim. If a sinkhole or clay shrinkage claim, or the risk associated with the occurrence of such a claim, is the basis of such contemplated cancellation or nonrenewal, the non-renewal or cancelation provision applies. However, an insurer may non-renew or cancel a policy if the total of claim payments for that policy exceed the current policy limits of coverage for property damage, or if the insured has failed to repair the structure in accordance with the engineering recommendations upon which any payment or policy proceeds were based.
The October 23, 2012 Final Public Hearing notice is attached for review.
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