Senate Banking and Insurance Again Postpones Action on Comprehensive Property Insurance Bill; Passes Commercial Insurance Bill That Would Add Lines Subject to Reduced Form and Filing Regulations
Feb 7, 2011
At its meeting today, February 7, 2011, the Florida Senate Committee on Banking and Insurance resumed debate on SB 408, a comprehensive residential property insurance bill to which 30 amendments have been filed–two of which were filed today.
To view the meeting packet, click here.
The Committee started the discussion where it had left off at its meeting two weeks ago–on the amendments filed to SB 408 by Senator Mike Fasano. Those included Amendment 160462, which would require insurers to provide policyholders with notice of changes to policy terms. Committee Chairman Garrett Richter spoke against the amendment, explaining that it would confuse policyholders. Ultimately, Amendment 160462 was voted down.
Amendment 284748, by Senator Fasano, would have changed the definition of “structural damage,” but was defeated by a vote of 7 to 3.
Another amendment by Senator Fasano that called for sinkhole engineers to furnish their reports to homeowners failed on a voice vote over concerns that the provision would have unintended consequences.
Amendment 454164, which would lay out qualifications necessary for public adjusters to be certified to adjust sinkhole claims, was withdrawn with the promise that the public adjusters will continue to work on the issue with Senator Fasano.
Among Senator Fasano’s amendments that were not considered was 245558, which would make the failure to disclose sinkhole properties a third-degree felony.
Objections to Senator Fasano’s amendments, which he characterized as “consumer friendly,” centered around their vagueness. Chairman Richter said this factor was likely to cause confusion.
After additional discourse that included remarks from Senate Appropriations Chair J.D. Alexander and Chairman Richter, Senator Fasano withdrew his remaining amendments and indicated he would file them again when SB 408 reaches the Senate floor.
During public testimony, a young man who identified himself as Private Espinosa, a member of the U.S. military, testified together with his wife that they have had a sinkhole claim denied, even though their insurer filed notice of a sinkhole with his local clerk of court.
After the Espinosas’ testimony, Senator Mike Bennett withdrew his prior motion for a time-certain vote in order to allow public testimony to continue. Time ran out on the meeting without consideration of Senator Richter’s amendments or a vote on the bill.
Consideration of the remaining amendments was postponed until the Committee’s next meeting (which has not yet been scheduled).
SB 178 relating to Commercial Insurance
The Committee then considered and later passed SB 178 by Senator Steve Oelrich with one amendment.
During discussion on SB 178, which relates to commercial insurance, Senator Oelrich explained that the bill would add certain lines of commercial insurance that would operate with less form and filing regulations. The bill builds on a similar commercial insurance-related bill that was passed into law after the 2010 Regular Legislative Session.
Several Committee members expressed concerns on potential rate increases to small businesses if SB 178 were to become law.
During the discussion, Florida Office of Insurance Regulation Deputy Commissioner Belinda Miller was questioned about the impact of last year’s related bill. She explained that commercial rates are cyclical and have trended downward in the recent past.
During public testimony, insurance industry representatives noted that the commercial insurance industry is very competitive. They agreed that SB 178 will help ensure a healthy commercial insurance market.
Representatives of various business trade associations also testified in support of the bill.
Should you have any comments or questions, please contact Colodny Fass.
To unsubscribe from this newsletter, please send an email to bellis@cftlaw.com.