Senate Omnibus Property Insurance Bill Passes 32-4

SB 2044, the Senate omnibus property insurance package, passed by a vote of 32 to 4 in the Florida Senate after being amended today, April 23, 2010. 

• Amendment 540640 by Senator Ronda Storms relating to Florida’s Sinkhole Database was adopted.
• Amendment 124830 by Senator Dave Aronberg was adopted. The amendment would revise § 626.221, F.S. by expanding the list of individuals who are exempt from the requirement to pass an examination before being issued a license as an agent, customer representative or adjuster.
• Amendment 585216 by Senator Garrett Richter, which states that an insurer cannot use same accountant for five years, was adopted.
• Amendment 597492 by Senator Mike Bennett was adopted, which would create § 624.611, F.S. to govern “catastrophe contracts” and allow an insurer to submit to the OIR, in advance of the hurricane season, a plan to use financial contracts other than reinsurance contracts to provide catastrophe loss funding.
• Amendment 785946 by Senator Bennett relating to public adjusters was adopted.
• o Amendment 931266, which would have amended Amendment 785946, was withdrawn, however. This legislation would have amended § 626.70132 to provide that when a public adjuster assists an insured in resolving a claim, the insurance company, upon the written request of the insured, shall provide payment to the public adjuster-via separate instrument-for an amount equal to the public adjuster’s fee as memorialized in the agreement between the public adjuster and the insured.
• Amendment 602482 by Senator Aronberg was adopted, which would amend § 627.351, F.S. to revise the conditions under which the Citizens policyholder surcharge may be imposed.
• Amendment 538148 by Senator Aronberg was adopted, which would require applicants for Citizens Property Insurance Corporation (“Citizens”) coverage and Citizens policyholders to sign an acknowledgement that a policy may be subject to surcharges under certain circumstances.
• Amendment 837380 by Senator Richter was adopted, which would amend § 627.7011, F.S. to state that if a “total loss occurs, the insurer shall pay the replacement cost without reservation or holdback of any depreciation in value.” The provision also strikes “for contents coverage.”
• Amendment 299768 by Senator Storms that specifies 15 days for payment of claims for which repairs are underway was adopted. However, Amendment 371034, which was adopted, extended that time period to 20 days.
• Amendment 970098 by Senator Bennett relating to wind mitigation forms was adopted.
• Amendment 462272 by Senator Steve Oelrich relating to sinkholes was adopted.
• Amendment 599856 by Senator Oelrich relating to sinkhole claim neutral evaluators was adopted.
• Amendment 451274 by Senator Carey Baker relating to cost estimates was withdrawn.
• Amendment 425822 relating to rating organizations by Senators Al Lawson and Dan Gelber was withdrawn.

Following consideration of these amendments, the bill was read a third time. Limited debate took place.

SB 2044 has been sent to the House of Representatives, where its companion, HB 447, is pending on the calendar.   The bills are expected to be addressed during the final week of the 2010 Legislative Session.

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

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