Florida Senate Amends, Advances CS/CS/HB 245 Relating to Depopulation Programs of Citizens Property Insurance Corporation
Mar 5, 2012
CS/CS/HB 245 relating to Depopulation Programs of Citizens Property Insurance Corporation (“Citizens”) was considered by the full Senate today, March 5, 2012. The bill provides that eligible surplus lines insurers may participate, in the same manner and on the same terms as an authorized insurer, in depopulation, take-out, or keep-out programs relating to policies removed from Citizens.
The following floor amendments were offered to CS/CS/HB 245 this morning:
- Amendment 808810 by Senator Mike Fasano would subject policies taken out of Citizens by surplus lines carriers to the requirements of the Florida Insurance Guaranty Association. Declared by Senator Garrett Richter as “unfriendly.” The amendment caused a great deal of debate, which caused the bill to be temporarily passed. Much of the debate focused on a policyholder’s recourse against surplus lines carries that do not meet obligations. The amendment was withdrawn.
- Amendment 455938 by Senator Thad Altman would increase the required notices that must be provided to a policyholder by Citizens prior to his or her policy being taken out of Citizens by a surplus lines carrier and required the policyholder to authorize the take-out. The debate in regard to this amendment focused on balancing the interests of depopulating Citizens with the interests of current Citizens’ policyholders. Despite being declared as “unfriendly” by Senator Richter, the amendment was adopted.
- Amendment 666248 by Senator Fasano would have required Citizens to offer policies for mobile homes that would not currently be eligible. The amendment was ruled out of order.
- Amendment 770286 by Senator Fasano would remove a public records exemption from CS/CS/HB 245. The amendment was adopted.
- Amendment 354346 by Senator Anitere Flores would require surplus lines insurers to provide proof of a $50 million surplus to the Florida Office of Insurance Regulation. The amendment was adopted
- Amendment 749354 by Senator Ronda Storms would subject surplus lines carriers taking policies out of Citizens to the consumer complaint provisions of 20.121, F.S. The amendment was adopted.
- Amendment 808192 by Senator Jack Latvala would require a surplus lines broker representing a surplus lines insurer on a take-out program to maintain the required agent confirmation for as long as the policies remain within the surplus lines insurer. The amendment was adopted
- Amendment 816218 by Senator Storms would require surplus lines insurers to provide specific notice of any future increases in premium of more than 10 percent. The amendment was adopted.
- Amendment 434348 by Senator Storms would require a surplus lines carrier to provide a copy of a U.S. trust account agreement, if applicable; along written proof that it will not charge a higher premium for the first renewal offer of coverage than the then current approved rate charged by the corporation. The amendment was adopted.
- Amendment 355708 by Senator Storms would allow policyholders whose policies have been taken out of Citizens by a surplus lines carrier to return to Citizens for similar coverage at a similar rate. The amendment was adopted.
The bill was then rolled to Third Reading.
Should you have any questions or comments, please contact Colodny Fass.
To unsubscribe from this newsletter, please send an email to Brooke Ellis at email@example.com.