 The Senate Rules Committee passed the omni-bus Property Insurance
bill SB 408 by Chairman Richter this week,
and now it heads to the Senate Floor for a final
vote before it heads to the House. The House bill
HB 803 by Representative Wood finally made
it out of its first committee of reference (the
House Banking & Insurance Subcommittee), but it
still has two committee references left before it is
available for a floor vote in the House.
The Senate package was amended to restore the Actual Cost
Value/Replacement Cost Coverage (ACV/RCC) mandatory
holdback for dwelling damage claims under certain
conditions, and allowing insurers to offer policies with
holdbacks on contents as well. On personal property, it
allows insurers the option of offering coverage with the
holdback and without it. Another amendment was adopted
that deleted a previously adopted amendment by Senator
Fasano, repealing the use and file law. The bill now
requires Citizens Property Insurance Corporation
("Citizens") to offer sinkhole insurance coverage, in
addition to catastrophe ground collapse coverage, but
with new tools to prevent big payouts for minor,
cosmetic damages. Chairman Richter is adamant that once
these provisions are in place, the private market
capital and private insurers will come forward and write
sinkhole coverages in the troubled communities in
central Florida. The Rules Committee also passed an
amendment that prohibs Citizens policyholders from
hiring a public adjuster until Citizens has tendered an
'offer of settlement on the claim'. Public adjuster
commissions would be limited to 5% of the additional
amount actually paid over the amount that was originally
offered by the corporation for any one claim. Also
clarifies that a provision in the bill deregulating
rates for sinkhole coverage for Citizens and private
insurers would not be capped by the 10% rate increase
cap under Citizens' glide path toward actuarially sound
rates. The bill deliberations ended on a humorous note
prior to passage as an amendment by Senator JD Alexander
was adopted that changes Citizens' name to the "Taxpayer
Funded Property Insurance Corporation." It will be
interesting to see if that name sticks as the bill moves
forward.
Also of note this week, an amendment to the Senate Property package
addressed The Insurance Capital Build Up Incentive
Program ("ICBUIP"). It provides for an option for
any insurer participating in the ICBUIP to have the
writing ratio requirements waived; provided the insurer
agrees to accelerate the payment of the Surplus Note by
at least 5 years. The plan is being supported by the
Florida Hurricane Catastrophe Fund Chief Operating
Officer Jack Nicholson, who administers the ICBUIP.
The respective property bills have many similar provisions, but there are
several issues that will still need to be worked out
between now and final passage.
The
Citizens bill was passed by the House
Economic Affairs Committee this week.
Hb 1243 by Representative Boyd was
adopted only one amendment before passage. It was
amended limiting rate increases to 15% per policyholder
instead of 20% per rating territory & 25% per
policyholder as it was previously in the bill, and as is
still contained in the Senate companion,
Sb 1714 by Senator Hays. The House bill
is now available for the House floor, but now currently
on the calendar. SB 1714 is in the Senate Budget
committee, and then is headed to the Senate floor.
Note both bills contain the language that allows surplus
lines insurers to remove policies from Citizens (under
specified conditions) as reported previously.
The Surplus Lines NRRA implementation (Hb 1227 by Rep. Hager &
Sb 1816 by Senator Fasano) legislation was 'not'
addressed in the Senate Budget committee this week; nor
was it heard in the House where it still has two
committees left before it reaches the floor.
Calendar: The Legislature will be taking a break from
meetings the week of April 18th for the
Holidays. Session Ends May 6th.
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