Senate Banking & Insurance Committee Meeting Report: January 14
Jan 14, 2009
On Wednesday, January 14, 2009, the Florida Senate Banking and Insurance Committee (“Committee”) met and heard presentations on the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (“S.A.F.E.”), Florida Hurricane Catastrophe Fund (“FHCF”), Tower Hill petition for Rule variance, and Cover Florida Health Care Access Program.
Chairman Garrett Richter (R-Naples) opened the meeting by outlining the Committee’s priorities for the upcoming Legislative Session, including:
- Florida Hurricane Catastrophe Fund exposure
- Workers’ compensation issues
- Citizens Property Insurance Corporation premium amounts
- Regulatory environment for consumer protection
Implementing the Requirements Necessary to Comply with Provisions of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (“S.A.F.E.”)
Chairman Richter stated that it is his intention to address this issue as a “bare bones compliance” in the form of a committee bill that would bring Florida into compliance with new federal mortgage licensing requirements.
Assistant Director of the Florida Office of Financial Regulation Alex Hager gave a presentation detailing the requirements of S.A.F.E. Valerie Saunders with the Florida Mortgage Brokers Association offered testimony to the Committee urging implementation of S.A.F.E.’s minimum requirements.
Status of the Florida Hurricane Catastrophe Fund (“FHCF”)
Senior FHCF Officer Dr. Jack Nicholson gave an overview of funding issues, stating that the FHCF is facing an $18.5 billion bonding shortfall for 2008-2009. The theoretical bonding capacity for 2008-2009 should be $28 billion and the 2009-2010 capacity $29 billion. However, after evaluating the bond market and current global financial situation, the FHCF’s bonding capacity has been reduced to $13.3 billion, leaving a theoretical gap of $18.5 billion.
Dr. Nicholson suggested three possible methods to address the shortfall:
- Statutorily reducing FHCF capacity by shifting exposure to the financial markets
- Purchasing financial products to close the capacity gap
- Federal involvement
Tower Hill Petition for Rule Variance
Dr. Nicholson stated that Tower Hill’s petition seeking a waiver or variance from the Florida Office of Insurance’s premium funding Rule was denied and the issue has been resolved, because Tower Hill did not file an appeal to the Division of Administrative Hearings or the First District Court of Appeal.
Cover Florida Health Care Access Program
A brief overview was given on the Cover Florida Health Care Access Program, which began marketing and taking applications for coverage on January 5, 2009.
The meeting was then adjourned. The Committee packet, which includes copies of the presentations given at the meeting, may be viewed by clicking here.
Should you have any questions or comments, please do not hesitate to contact Colodny Fass.
To unsubscribe from this newsletter, please send an e-mail to ccochran@cftlaw.com