Session Recap: Tuesday, May 1 Insurance-Related Legislative Action

On Tuesday, May 1, 2007 the Florida House and Senate each considered bills relating to insurance.

Below is a brief summary of their actions taken today on insurance-related legislation:

 

Citizens Property Insurance Corporation

Senate Bill 2498 by Senator Rudy Garcia (R-Miami) was read a second time, considered and 12 amendments were adopted.

As amended, the bill contains many of the provisions that Governor Crist has been supporting which would make Citizens more competitive with the private insurance market.

Some of the substantive amendments include:

• requiring insurers that offer surplus lines to inform the insured that Citizens is an available option
• requiring insurers to pay interest on claims not paid within 90 days after receiving notice of a claim, and that the interest on said claim cannot be included in the rate base
• adding that failure to pay undisputed amounts of partial or full benefits within 30 days are considered unfair methods of competition and unfair or deceptive acts or practices
• authorizing optional sinkhole coverage in certain counties
• extending an exemption of medical malpractice insurance premiums from emergency assessments under the Hurricane Catastrophe Fund to 2010

 

Hurricane Damage Mitigation

Senate Bill 1864 by Senator Bill Posey (R-Rockledge) was temporarily postponed on third reading. We believe that Sen. Posey was unable to reach an agreement with those Senators who previously were successful in adopting unfavorable amendments to his bill on second reading. It is unclear whether the Senate will reconsider this bill on third reading.

 

Owner-Controlled Insurance Programs

House Bill 843 by Representative Dave Murzin (R-Pensacola) and Senate Bill 1624 by Senator Mike Bennett (R-Bradenton) contain provisions that amend the laws regarding owner-controlled insurance programs. Both bills were read a second time.

 

Workers’ Compensation Joint Underwriting Association

Senate Bill 1894 by Sen. Posey (R-Rockledge) and House Bill 1429 by Representative Michael Grant (R- Port Charlotte) amend the laws governing the Florida Workers Compensation Joint Underwriting Association, Inc. (FWCJUA), providing greater accountability and oversight, assisting the FWCJUA in achieving tax-exempt status, authorizing additional funding mechanisms, and requiring prior approval of rates. Both bills were read a second time.

 

Examination of Insurers

Senate Bill 2782 by Sen. Posey (R- Rockledge) and House Bill 1549 by Representative David Rivera (R- Miami) amend the frequency of the required insurers examinations to no less than once every 5 years and expands the list of entities that qualify to conduct examinations. Further, both bills provide that the Office of Insurance Regulation is the selector of examining firms and removes language that previously involved insurers in the process of deciding which firm would conduct the examination. This bill is a priority for the Office of Insurance Regulation this Session. Both bills were read a second time in each Chamber, respectively. The Senate adopted amendments on second reading.

 

Insurance Agents and Adjusters

Senate Bill 2702 by Senator Dave Aronberg (D- Greenacres) and House Bill 1381 by Representative Garrett Richter (R-Naples) make several changes relating to the Department of Financial Services’ regulation of insurance agents and adjusters. The changes relate to licensing, branch insurance locations, public adjusters, the Surplus Lines Association, and risk-bearing entities. Both bills were read a second time in each Chamber, respectively.

 

Please note that both the House and Senate must read bills three times before voting as a full body. Generally, bills are debated during second and third readings. The bills must pass each Chamber with identical language before they can be submitted to the Governor for signature.

As a recap of the day’s proceedings, enclosed are two documents that include those bills passed in the House, and those bills passed by the Senate.

Now, the House bills move to the Senate, and the Senate bills are sent to the House, where each Chamber may, or may not consider each other’s bills, respectively.

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