Senate Banking and Insurance Committee Insurance-Related Interim Reports Published
Oct 28, 2008
The Florida Senate Banking and Insurance Committee has published the following insurance-related interim reports:
Applying the Florida Antitrust Act to the Business of Insurance
The Florida Antitrust Act under Chapter 542, F.S., complements a related body of federal antitrust laws by prohibiting restraints of trade or commerce such as price discrimination, price fixing and monopolies. A central provision of the Act has the effect of exempting the “business of insurance” from state antitrust laws by providing that any activity or conduct exempt under Florida statutory or common law or exempt from federal antitrust laws is exempt from the Act’s provisions.
Currently, the federal McCarran-Ferguson Act exempts from the federal Sherman, Clayton, and Federal Trade Commission acts conduct that:
- Constitutes the business of insurance
- Is regulated by state law
- Is not an agreement to boycott, coerce, or intimidate
The intent is to reserve regulation of insurance companies to the states and to allow insurers to exchange data regarding losses and other factors for the purposes of rate making and for the joint development of policy forms. According to information obtained from the National Association of Insurance Commissioners, 26 states do not exempt the business of insurance from their state antitrust laws. The objective of this report is to evaluate the effects of applying the Florida Antitrust Act to the business of insurance and to provide options for applying the Act to the business of insurance.
To read the complete Report, click here.
Impact of Federal Legislation on Mortgage Brokerage and Lending Laws in Florida
According to some sources, Florida leads the nation in residential mortgage foreclosures and mortgage fraud.
In response to the turmoil in the housing market, the federal Housing and Economic Recovery Act was enacted on July 30, 2008. Title V of this Act is entitled, “The Secure and Fair Enforcement for Mortgage Licensing Act of 2008” (“S.A.F.E.”).
The intent of S.A.F.E. is to provide greater accountability and regulation of loan originators (mortgage brokers and lenders) and enhance consumer protections by establishing minimum licensure and registration requirements for loan originators and a national database for consumers to inquire about the credentials and disciplinary history of their brokers and lenders.
Generally, if Florida does not enact minimum regulatory standards that comply with S.A.F.E. and participate in the national registry system within 12 months after the enactment of this act, the U.S. Department of Housing and Urban Development is required to enforce the minimum standards for loan originators operating in Florida as state-licensed loan originators.
This issue brief summarizes key provisions of the federal law and differences with the Florida law that would be necessary to address in order to comport with the federal act. The issue brief also provides other legislative options for increasing consumer protections.
To read the complete Issue Brief, click here.
Cities Charging “Accident Response” Fees to At-Fault Drivers and Insurers
Florida counties and municipalities are afforded broad constitutional and statutory home rule powers with expansive legislative and service delivery authority. Counties have legislative and service delivery authority countywide for county purposes and within the unincorporated area for municipal functions and services. Likewise, municipalities have similar authority within their boundaries.
In an effort to balance budgets in order to continue vital services and as an alternative to raising taxes, about two dozen counties and cities in the state have begun imposing accident response fees on drivers and their insurers for the delivery of police and fire services including personnel, supplies and equipment to the scene of auto accidents within their jurisdictions.
Local governments generally take the position that these are not taxes, but user fees charged in exchange for services which benefit the party paying the fee, i.e., the driver involved in an accident, and are applied solely to pay for the cost of the services.
Insurers generally assert that accident response fees are not covered under liability policies. If insurers start paying these fees, insurance premiums will increase, company representatives argue.
To read the complete Issue Brief, click here.
The Senate Committee on Judiciary also published a related report on the analysis of the law relating to the admissibility of expert testimony and scientific evidence.
Should you have any questions or comments, please do not hesitate to contact Colodny Fass.
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