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In This Issue |
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Capitol Report:
Legislative Update |
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Florida Surplus Lines Association
Legislative Update for the 2012 Session |
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December 21,2011 |
The Regular Legislative Session Begins
January 10th, 2012
Current
Status of Legislation being Tracked as of
12-19-11
Citizens Take-out & Surplus Lines
(Hb
245 by Rep. Boyd/ Sb 578 by Sen. Richter)
Authorizes surplus lines insurers to implement
Citizens Property takeout proposals if insurer has
$50 million in reserves and an A.M. Best Financial
Strength Rating of A-. Citizens policyholders could
still refuse the takeout if they choose. Status:
Hb 245
has passed one committee, and has one remaining. Sb
578 passed one committee, has one left.
Captive Insurance
(Hb 379 by Rep.
Nunez/ Sb 610 by Diaz de la Portilla)
The bill allows for the creation of pure captive
insurance companies, association captive insurance
companies, industrial insured captive insurance
companies, special purpose captive insurance companies,
and captive reinsurance companies; and allows captive
insurance companies to provide any and all insurance
under the Florida Insurance Code, (except for workers
compensation health insurance, and personal motor
vehicle or homeowners' insurance). Deletes the current
definition of captive insurer and redefines it as
meaning a domestic insurer established under part V of
chapter 628, F.S., including five new specified types of
Captives.
Status: Hb 379 Passed one committee, has two remaining.
Sb 610 passed one committee, has one remaining.
Residential Property Insurers/Commercial Lines
Residential Policies
(Hb 753 by Rep. Holder/ Sb
728 by Sen. Ring)
Amends provisions relating to checklists of policy
contents, applying provisions to commercial lines
residential insurance policies entered into on or after
a certain date. Revises provisions relating to the
disclosure of certain insurer and policy information to
claimants, and provisions relating to deductibles
included in policies.
Status: Neither bill has been addressed. We have
met with both bill sponsors in an effort to have
reference to surplus lines removed from the bill so as
to insure no confusion with governing sections of law
which includes similar language.
Nonrenewal of Insurance
(Sb 1248 by Sen. Hays/ House Sponsor to be determined)
Provides that section 626.9201(1), does not apply if the
insurer intended to renew the policy or in cases of
nonpayment of premium. This is the FSLA sponsored
legislation that clarifies that if the insurer notifies
the insured or the insured's insurance agent, and has
manifested its willingness to renew, the provisions of
subsection (1) of s. 626.9201, F.S. do not apply. It
further clarifies that the subsection does not apply in
cases of nonpayment of premium as well.
Status: Working on getting the Senate bill heard in
committee, and locating House sponsorship.
Commercial Parasailing
(Sb
652 by Sen. Jones/ No House sponsor yet)
Requires the
owner of a vessel engaged in commercial parasailing to
obtain and carry an insurance policy. We
previously worked with sponsor to include surplus lines
insurance with eligible coverage's.
Status:
Yet to be addressed in committee.
Insurance Agents and Adjusters
(Hb
725 by Rep. Hager/ Sb 938 by Sen. Richter
Deletes
the requirement that an insurer pay an agent tax for
each county in which an agent represents the insurer and
has a place of business. Revises the definitions
of "adjuster" and "home state". Amends provisions
relating to who may bind insurance coverage and
continuing education requirements.
Status: Yet to be addressed in committee.
Florida
Hurricane Catastrophe Fund
(Hb 833 by Rep. Hager/ No Senate Sponsor yet)
Endorsed by CAT Fund Chief Jack Nicholson, the bill
attempts to 'right-size' the CAT Fund by revising
definitions of "retention" & "corporation", calculation
of insurer's reimbursement premium & retention under
reimbursement contracts, as well as the
claims-paying capacity of fund, among other changes
proposed.
Status:Yet to be addressed in committee.
The Board of Directors
wish all members Happy Holidays and a Healthy New Year!
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