Senate Banking & Insurance Committee Meeting: April 15

On Tuesday, April 15, 2008, the Florida Senate Banking and Insurance Committee (“Committee”) discussed insurance-related legislation as part of its regular agenda.

A large portion of the meeting was devoted to consideration of Senate Bill 1986 by Senator Ring relating to homeowners’ associations and credit liens. SB 1986 was voted favorably by the Committee.

Regarding insurance-related matters, the Committee considered the following bills:

• Senate Bill 2272 by Senator Bill Posey relating to escrow agents. The bill prohibits businesses from using the term “escrow” in their business name or title. The bill includes several exempted entities, such as financial institutions, attorneys, and title insurance agents, agencies, or insurers. SB 2272 passed the Committee with limited discussion.

• Senate Bill 2470 by Senator Ted Deutch relating to condominium associations and hazard insurance. The bill revises the insurance rights and obligations of condominium associations and the unit owners to maintain adequate hazard insurance. The bill also permits three or more communities to obtain insurance for an amount equal to the probable maximum loss for a 250-year windstorm event. The bill passed the Committee with limited discussion.

• Senate Bill 2846 by Senator Deutch relating to subprime loans. The bill expands the number and types of loans subject to the provisions of the Florida Fair Lending Act. The bill includes several provisions, one of which would eliminate mandatory arbitration for subprime loans. Several speakers testified against the bill, including the Florida Bankers Association and the Florida Justice Reform Institute. SB 2846 passed the Committee.

• Senate Bill 454 by Senator Jeff Atwater entitled the “Accurate Employment Statistics Enhancement Act.” The bill relates to employee leasing companies. It requires the leasing arrangement contract to specify whether the leasing company or the client company will provide workers’ compensation coverage for the leased employees, and requires an employee leasing company to give written notice to all leased employees whether the leasing company or the client company will cover them for workers’ compensation. The bill also requires quarterly reporting to the Labor Market Statistics Center of the Agency for Workforce Innovation. The bill was temporarily passed, meaning that it could be considered at a later date.

Should you have any questions or comments, please do not hesitate to contact this office.

 

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