Colodny Fass Featured in Federation of Regulatory Counsel August 2010 Update
Aug 4, 2010
Colodny Fass attorneys were featured contributors to the Florida section of the Federation of Regulatory Counsel’s (“FORC”) August 2010 “FORC Alert.” To view the publication, click here. The articles are reprinted below.
New Florida Condo Law Changes Insurance Requirements for Associations and Unit Owners Effective July 1, 2010
Effective July 1, 2010, Senate Bill 1196 by Senator Mike Fasano relating to Community Associations makes several changes to insurance requirements for condominium associations and condominium unit owners. The bill repeals the requirement that unit owners maintain property insurance coverage, as well as the requirement that the condominium association be an additional named insured on the policies issued to unit owners. It further requires loss assessment coverage of $2,000 for policies issued or renewed on, or after July 1, 2010. A deductible of no more than $250 is to be applied per loss. However, if a deductible applies to another property claim to the unit owner resulting from the same direct loss, then no deductible will apply to the loss assessment coverage. The bill also corrects a “glitch” in the law by replacing the terms “hazard” and “casualty” with the term “property.” To view complete information on SB 1196, click here.
First District Court of Appeal Affirms Florida Office of Insurance Regulation’s Right to Review Non-Florida-Related Viatical Settlement Provider Records
The Florida Office of Insurance Regulation (“OIR”) announced on June 16, 2010 that the First District Court of Appeal has affirmed the OIR’s right to review non-Florida related records for viatical settlement providers by ruling in favor of the OIR in its litigation with Coventry First, LLC, (“Coventry”) of Florida. Coventry had entered into litigation with the OIR over the issue of whether Section 626.9922, Florida Statutes allowed the OIR to examine non-Florida books and records, or whether this legal authority was limited to Florida-only records. To view the First District Court’s opinion and a chronology of OIR litigation with Coventry, click on the hyperlinks below:
Florida Insurance-Related Rules Effective July, August 2010
Effective July 19, 2010, Rule 69O-157.302,.303,.304; Long Term Care, New Business Rates pertains to Facility-Only Rates, Home Health Care-Only Rates and Comprehensive-Only Rates, respectively, and provides for the publication of new business rates that will be effective for 2010. Section 627.9407(7)(c), F.S. relating to long-term care insurance requires that any premium increase for existing consumers not result in a cost that exceeds the premium charged on a newly issued policy. This statute further provides that, if the insurer is not issuing new coverage, the new business rate shall be as published by the OIR, at the rate representing the new business rate of insurers representing 80 percent of the carriers currently offering policies with similar coverage as determined by the prior calendar year earned premium.
Case Summary: Insurers’ Obligation to Defend and Pay on a Policy Claim Under a Reservation of Rights
A recent Florida federal appeals court decision involving an insurance company’s duty to defend and pay a claim against a policyholder underscored the need for all insurers to take diligent and good faith steps to properly define all terms of their defense in advance when obtaining the cooperation of their insured during the defense of an underlying lawsuit under a reservation of rights.
Florida Hurricane Catastrophe Fund Coverage Selections and Premium Calculations Updated
Florida Hurricane Catastrophe Fund Coverage Selections and Premium Calculations from the past three Contract Years have updated as of June 30, 2010. To view each year, click on the corresponding hyperlinks below: