Surplus Lines Form Filing Issue Could Be Addressed In Possible December Special Session
Nov 10, 2008
The Florida Supreme Court’s decision in the Essex v. Zota case has been interpreted by the Federal Eleventh Circuit Court of Appeals in the CNL Hotels v. Tower City case to require surplus lines insurers to file forms with, and obtain approval from, the Florida Office of Insurance Regulation.
This interpretation has created much confusion in the insurance marketplace and has significant implications within the Florida surplus lines industry. Additionally, since the Essex decision, several plaintiffs’ attorneys have raised this issue in litigation in Florida. Colodny Fass is looking at several options to remedy this problem, including regulatory and legislative solutions.
The Florida Legislature will begin committee meetings December 12, 2008, and commence the Regular Legislative Session on March 2, 2009. There is also a possibility that the Legislature will convene for a Special Session in December. This will depend upon Florida’s budget situation and the need for Legislative action before the end of 2008.
Currently, several drafts of proposed legislation that would serve to address the issue are circulating. Each proposal has certain advantages and disadvantages for the insurance industry and could be addressed by the Legislature as early as the Special Session, if it is held in December.
Colodny Fass is also in contact with the Florida Office of Insurance Regulation regarding potential regulatory solutions and is monitoring the current and potential litigation on the Essex topic.
To read more on this issue, click here.
If you would like to review or discuss any of these options and provide comments, please contact Katie Webb at kwebb@cftlaw.com, or at (850) 577-0398.
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