Senate General Government Appropriations Committee Approves Deregulation, Omnibus Property Bill
Apr 14, 2010
Two major insurance-related bills were considered by the Florida Senate Committee on General Government Appropriations (“Committee”) at its April 13, 2010 meeting. Following is a summary of actions on each:
CS/SB 876 relating to Residential Property Insurance by the Senate Committee on Banking and Insurance and Senator Mike Bennett (also known as the “Consumer Choice Bill”) was amended by the Committee with Amendment 891142, which would create a 10 percent statewide average cap on rate increases and a per-policy cap of 20 percent on a statewide average rate increase. The bill was opposed by the Florida Office of Insurance Regulation (“OIR”) representatives, who said that SB 876 “goes too far,” and that it will not help Florida, which they characterized as geographically ill-equipped to attract new insurers.
OIR representatives further explained that a free market can’t really exist in Florida if insurance is mandated in certain circumstances.
Senator Carey Baker stated that he generally hears many insurance-related complaints and that it appears that the OIR has failed at its charge to regulate the market. Adding that consumers should be able to choose insurance as freely as they choose other purchases, Senator Baker concluded that perhaps the Legislature should try deregulation to evaluate how it works.
The Florida Chamber also testified that SB 876 is not a total solution, but part of it.
The Committee unanimously approved SB 876 as a committee substitute. Next, it must be heard by the Senate Policy and Steering Committee on Ways and Means.
Several amendments and substitute amendments to CS/SB 2044 relating to Property Insurance by the Senate Committee on Banking and Insurance were requested to be withdrawn by the bill’s original sponsor, Senator Garrett Richter.
During the Committee meeting, other amendments were adopted to CS/SB 2044, which is also known as the Senate omnibus property insurance bill. Among other provisions, these amendments change the qualifications of Citizens Property Insurance Corporation Board of Governors members and limit the portion of the bill relating to notice of change in policy terms to only personal lines property policies. Actual cash value holdback in certain situations also was limited.
An amendment creating a new surplus action level and requiring certain financial disclosures of affiliates that enter contracts with insurers reaching that level was adopted as well.
Other amendments adopted included 213526, which was substituted by 579080 by Senator Charlie Dean. Senator Dean’s amendment would allow insurers to submit additional information on a rate filing without having to refile it.
SB 2044 was passed by the Committee unanimously as amended. After next proceeding to the Senate Committee on Rules, it will be ready to be heard on the Senate Floor.
Should you have any comments or questions, please contact Colodny Fass.
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