Florida Legislation Expands Law Allowing Multi-Policy Discounts
Oct 3, 2019
By Wes Strickland and Michael Billmeier
During the 2019 session, the Florida Legislature passed a bill that expands the circumstances under which an insurer may offer a multi-policy discount to an insured. The bill allows a discount to the insured when the insured purchases policies from insurers operating under a joint marketing agreement, when a policy is removed from Citizens Property Insurance Corporation through the policyholder eligibility clearinghouse program, or when the same agent is servicing the policies from different insurers. The Governor signed the bill (CS/CS/CS/HB 301) on June 18, 2019, and it has been codified as chapter 2019-108, Laws of Florida, effective July 1, 2019.
Prior to July 1, 2019, section 627.0655, Florida Statutes, allowed an insurer to include a discount in the premium charged for any policy, contract, or certificate of insurance, because another policy, contract, or certificate of any type has been purchased by the insured from the same insurer or insurer group. In addition, the discount was allowed when an agent is servicing both an open-market policy for the insured and one issued by Citizens or an insurer that removed the policy from Citizens through the takeout process. The bill amended Section 627.0655 to allow an insurer to offer a discount to the insured when the insured purchases policies from insurers operating under a joint marketing agreement, when a policy is removed from Citizens Property Insurance Corporation through the policyholder eligibility clearinghouse program, or when the same agent is servicing the policies from different insurers. This change in the law will enable even monoline insurers to offer multi-policy discounts under joint marketing arrangements or where a single agent represents the insured, provided the Office of Insurance Regulation approves the discount filings.
About the Authors
Wes Strickland is a Shareholder at Colodny Fass and heads the firm’s Insurance Regulatory & Transactions Practice in Tallahassee, Florida. He can be reached at (850) 321-3475 or wstrickland@colodnyfass.com. Michael Billmeier is a Partner in the firm’s Insurance Regulatory & Transactions Practice Group and its Governmental Consulting Practice Group. He can be reached at 850-701-3113 or mbillmeier@colodnyfass.com.