 *FSLA
Priority Alert:
We are working to have our proposed amendment
to eliminate the due diligence requirement, be
included in the House property bill (HB
803) when it is addressed next week.
The Senate property insurance package
(Sb 408 by
Senator Richter) was passed by the Senate Budget
Committee this week, but not after another amendment the
sponsor objected to.
The newly adopted amendment retains current law
which prohibits ACV/RCC
holdbacks. The bill was already amended to repeal use
and file in residential insurance rate-making, and looks
to be in for serious debate when it is deliberated on
the Senate Floor.
The House bill is expected to be addressed next
week in the House where it is anticipated that many of
the same amendments that Senator Fasano proposed will be
debated on their property package (Hb
803 by Rep. Wood).
The House bill still contains the provision to
restore the ACV/RCC
holdback for both contents and dwelling damage.
The key provisions still contained in the Senate bill
include:
Ø
A
3 year deadline on hurricane claims for both residential
and commercial;
Ø
Sinkhole
reforms: deregulating sinkhole rates, a two-year
deadline on sinkhole claims, a new definition of
structural damage from a sinkhole and allowing as an
option rather than requiring an offer of the much-abused
sinkhole coverage for cosmetic damages by Citizens
Property Insurance Corporation and private insurers
(insurers would still have to offer catastrophic ground
collapse coverage); and many other provisions;
Ø
Tougher
regulation of public adjusters, including new
restrictions on solicitation;
Ø
Repealing
the statutory “choke-down” of Citizens’ High Risk
Account;
Ø
Modifying provisions related to windstorm damage
mitigation discounts for residential property insurance
and repealing the provision requiring the OIR to develop
a method correlating mitigation discounts to the uniform
home grading scale.
The Surplus
Lines NRRA implementation legislation passed its
committees of reference this week in both the House and
Senate.
HB 1227 by Rep. Hager & SB 1816 by Sen. Fasano,
were passed without any problems or significant
amendments; and now both bills will be addressed in the
Revenue Estimating Conference where it will be
determined what the fiscal impact of the legislation
would be to the state.
This is a priority of the Office of Insurance
Regulation this session and viewed as a must pass due to
the fiscal impact.
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