Florida Property Insurance Legislative Update–April 30

Apr 30, 2009

Florida House and Senate leaders continue to negotiate HB 1495, the omnibus property insurance package.

Meanwhile, the Senate has decided not to address the “open rating” bill (SB 2036/HB 1171) or the surplus lines-related bill (SB 1894/HB 853) until they get a clear picture on what the omnibus property insurance bill ultimately will contain. 

Regarding HB 1495, although the information below is subject to change, there appear to be a few sticking points between the House and the Senate, including, but not limited to the following:

  • Funding the My Safe Florida Home mitigation program with money from Citizens Property Insurance Corporation (“Citizens”),
  • Prohibiting the Florida Office of Insurance Regulation (“OIR”) from addressing agent commissions,
  • Requiring a statement on a policy declarations page stating that the premium paid does not include potential assessments;
  • Allowing an expedited rate filing for the Florida Hurricane Catastrophe Fund’s (“FHCF’s”) Temporary Increase in Coverage Layer (“TICL”) replacement coverage
  • Generally limiting the scope of the bill to only items that address Citizens and the FHCF

At this point it appears that the House and Senate have agreed to the following:

  • A 10 percent “glide-path” increase per policyholder on Citizens rates
  • A $2 billion reduction in the TICL layer
  • Reauthorization of the FHCF’s $10 million drop-down layer
  • A six percent maximum assessment for Citizens emergency assessments
  • Stagger the terms of Citizens Board members
  • A Florida Office of Program Policy Analysis and Governmental Accountability study on public adjusters, as well as increased regulatory requirements for public adjusters
  • No “flex ban”
  • Clarifying that the OIR will give full credit for FHCF coverage

Additionally, Colodny Fass has learned that House leaders believe that the Senate will agree to the House bill relating to workers’ compensation insurance that would  once more calculate attorney’s fees in workers’ compensation cases in the manner they had been from the effective date of the 2003 workers’ compensation reform, up to the 2008 Florida Supreme Court decision in Murray v. Mariner Health ,



For additional information on Florida’s legislative process and terminology, click here.


Should you have any questions or comments, please contact Colodny Fass.


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