Senate Banking and Insurance Committee To Consider Residential, Commercial Insurer and Employee Leasing Company Deregulation Bills Today

The Florida Senate Committee on Banking and Insurance (“Committee”) meets on today, March 24, 2010 from 1:15 p.m. to 3:15 p.m.  The agenda includes the following insurance-related bills relating to deregulation:

SB 2046 relating to Insurance is a “shell” bill that is expected to be amended by proposed committee bill 852534, which relates to the regulation of Florida employee leasing companies (“ELCs”) by eliminating the need for prior approval for the change in ownership of ELCs in certain circumstances, eliminating the requirement that a delinquent ELC license automatically becomes void after 30 days and clarifying existing law regarding eligibility for economic benefits for ELCs.

SB 2176 relating to Commercial Insurance would exempt certain commercial insurance companies from having to file rates with the Florida Office of Insurance Regulation (“OIR”).  A strike-everything amendment, 580266, has been filed to SB 2176, which will further narrow its scope by:

• Removing professional liability from those products exempted from filing requirements;
• Limiting commercial motor vehicle coverage to fleets, which are defined as five or more vehicles;
• Clarifying that the rates for those products listed in the bill will continue to be subject to the standards in current law specifying that rates cannot be excessive, unfairly discriminatory or inadequate; and,
• Specifying the criteria that the OIR may use in determining whether a rate meets the above standards under the audit provisions of the bill and under current law, which authorizes the OIR to review a rate at any time.

SB 876 relating to Residential Property Insurance, also known as the Senate’s version of the “consumer choice bill,” would permit a residential property insurer to use a rate in excess of the approved rates it has filed with the OIR.  An amendment has been filed to SB 876 that would cap related average statewide rate increase amounts at five percent during the first year after the implementation of SB 876.  That cap would increase to 10 percent during the second year and to 15 percent by the third year and thereafter.  This is consistent with House version of the bill, HB  447.

Additional insurance-related bills on the Committee agenda today include:

• SB 1364 relating to Life Insurance
• SB 2084 relating to Mortgage Guaranty Insurers/Surplus Requirements
• SB 1474 relating to Emergency Health Care Providers
• CS/SB 214 relating to Autism

To view the complete meeting packet, click here.

Should you have any questions or comments, please contact Colodny Fass.

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