Florida House of Representatives’ Insurance and Banking Subcommittee Approves Captive Insurance Bill, Addition of Structural Engineer to Hurricane Loss Projection Commission
Mar 19, 2013
A bill revising Florida law relating to captive insurance companies, along with legislation that would add a structural engineer to the Florida Commission on Hurricane Loss Projection Methodology were among the proposals approved by the Florida House of Representatives’ Insurance and Banking Subcommittee at its meeting today, March 19, 2013.
Presented as a Proposed Committee Substitute (“PCS”), PCS for HB 819 would simply add a structural engineer with expertise in wind mitigation to the Florida Commission on Hurricane Loss Projection methodology. As originally filed by State Representative Holly Merrill Raschein, HB 819 also would have called for a study of the effects of wind versus water on projections of wind loss from hurricanes. However, that provision was not included in the PCS version of the bill.
With no debate or questions from the Subcommittee, PCS for HB 819 was passed unanimously.
Originally sponsored by Subcommittee Chairman Bryan Nelson, PCS for HB 1191 was also passed unanimously. The legislation revises Florida law relating to captive insurance companies by restoring language existing before 2012, to now permit an industrial insured captive insurance company with unencumbered capital and surplus of at least $20 million to continue to write workers’ compensation and employer’s liability insurance in excess of $25 million in the annual aggregate.
Further, PCS for HB 1191 makes pure captive insurance companies responsible for adopting risk management standards for controlled unaffiliated business. The bill requires such pure captive insurers to submit these standards to the Florida Office of Insurance Regulation for approval. This approach is expected to provide pure captive insurers with more flexibility than current law, which requires the Florida Financial Services Commission to adopt such risk management standards by rule.
PCS for HB 1191 also corrects an inconsistency in current insurance law by exempting captive insurance companies from deposit requirements that now exceed the surplus requirements to form a captive.
CS/HB 301 was presented to the subcommittee by State Representative Debbie Mayfield as part of today’s agenda. The bill would require coverage for orally administered cancer treatments. Florida Insurance Consumer Advocate Robin Smith Westcott, spoke in favor of CS/HB 301, stating that its cost impact would be negligible. The Subcommittee passed the bill.
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