Workers’ Comp Attorneys’ Fees, Surplus Lines Bills Pass Senate Banking and Insurance Committee on March 25

The Senate Banking and Insurance Committee, chaired by Senator Garrett Richter, met on Wednesday, March 25, 2009 and considered two insurance-related bills: 

• Senate Bill 1894 relating to Surplus Lines Insurers by Senator Mike Bennett, which specifies non-application of certain provisions of law to surplus lines insurers and provides for retroactive application
• Senate Bill 2072 relating to Workers’ Compensation/Attorney Fees by Senator Garrett Richter, which clarifies requirements for the payment of attorneys’ fees and costs under a retainer agreement and specifies the amount of attorneys’ fees that a claimant is entitled to recover from a carrier or employer

 

SB 1894

Senator Bennett provided an overview of SB 1894, to which Senator Jeremy Ring filed a substitute amendment. 

Senator Ring’s amendment specifies that surplus lines insurance is exempt from certain Florida laws designed to protect individual and business insurance policyholders, and that surplus lines carriers’ policy rates and forms, including homeowner and commercial property policies are not approved by any Florida regulatory agency.

Senator Ring noted that retroactive provisions were not a part of his amendment, but that several provisions of Chapter 627, Florida Statutes are included within it to ensure consumer protections. 

Florida Office of Insurance Regulation Deputy Commissioner Belinda Miller, who testified regarding SB 1894, explained to Senator Bennett that her office has not been overwhelmed with complaints about surplus lines companies.  In response to questions from Senator Mike Fasano, Ms. Miller explained the problems created by the Essex v. Zota decision and agreed that Senator Bennett’s bill would address those problems.

Significant public testimony on the amendment and the bill included representatives from insurance company trade associations, agent associations, business community groups and surplus lines groups who spoke in favor of both.  According to industry representatives, the amendment did, in fact, include retroactivity.  

During Committee debate, Senators Bennett and Fasano spoke against the amendment, while Senator Storms spoke in favor it. The amendment passed 5-4, after which the amended version of SB 1894 passed 9-0 and will now proceed to the Senate Finance and Tax Committee.

To view SB 1894, click here.  To view the amendment, click here. 

 

SB 2072

The Committee heard SB 2072, which would address the recent Murray v. Mariner Health Supreme Court ruling that the statutory limitation on attorneys’ fees was too restrictive and unreasonable.

A strike-all amendment filed today by Senator Al Lawson would have obviated the current legislation, but was defeated.

Testimony was heard from the Florida Chamber, the Florida Office of Insurance Regulation and a workers’ compensation judge.  Thirty-nine more speakers registered their desire to testify in regard to SB 2072, but were unable to be heard due to time constraints and the motion to vote at a time certain.

SB 2072 passed 6-3 with no amendments.

To view more information on SB 2072, click here.

 

For additional information on Florida’s legislative process and terminology, click here.

 

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

 

 

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