Florida Senate Committee on Banking and Insurance To Consider Insurance Group Commercial Policy Transfer Bill
Mar 13, 2017
The Florida Senate Committee on Banking and Insurance meets tomorrow, March 14, 2017 from 10 a.m. to noon, during which it it is scheduled to consider SB 812, a bill that would alter the method by which personal lines residential and commercial residential insurance policies may be transferred from one insurance company to another company within the same insurance group.
Under the provisions of SB 812, insurance companies writing commercial lines insurance policies would be able to transfer commercial policies to a different Florida licensed insurance company that is a member of the same insurance group or owned by the same holding company as the first insurer. Currently, a commercial policy that is transferred is considered to be a renewal policy rather than a cancellation, nonrenewal or termination. The insurer must provide notice of intent to transfer at least 45 days in advance along with the financial rating of the authorized insurer to which the policy is being transferred.
Insurance companies that write personal lines residential and commercial residential policies–except for certain farmowners policies–would not be authorized to use this procedure. Instead, the insurer would first be required to cancel, nonrenew, or terminate residential policies and meet current law applicable to cancellations, nonrenewal, or terminations, including a requirement to provide notice 120 days in advance of the action.
SB 812 provides that insurers providing personal lines residential or commercial residential property insurance coverage would be permitted to transfer policies to another authorized insurer that is a member of the same group or owned by the same holding company if:
- The insured is transferred to an affiliated insurer that is admitted to do business in Florida, that is admitted and writing residential property insurance in other states, and that has been determined by the Florida Office of Insurance Regulation to have the same or better financial strength than the transferring insurer;
- The transfer results in substantially similar coverage;
- Notice of the transfer is delivered to the insured or his or her agent; and
- The Office of Insurance Regulation has approved the transfer.
This will be the first committee hearing for SB 812, which must also pass the Senate Committee on Commerce and Tourism, as well as the Committee on Rules before heading to the Senate Floor. HB 805, a similar bill, has been filed in the House by State Representative Blaise Ingoglia.
One amendment has been filed to SB 812 so far by Senator Keith Perry. To read the amendment, click here.
Other insurance-related bills on tomorrow’s agenda include:
- SB 340 relating to Transportation Network Companies by Senator Jeff Brandes, which would create regulatory and insurance requirements for transportation network companies.
- SB 794 relating to Motor Vehicle Service Agreement Companies by Senator Brandes, which would allow a motor vehicle service agreement company to meet its reserving requirement by securing contractual liability insurance from an authorized risk retention group.
- SB 814 relating to the Florida Life and Health Insurance Guaranty Association by Senator Doug Broxson, which would revise the applicability of the Florida Life and Health Insurance Guaranty Association Act as to specified annuity contracts, as well as specify the Association’s maximum liability as to certain health insurance policies
To view the complete agenda, click here.
To view the meeting packet, click here.
Should you have any questions or comments, please contact Colodny Fass.
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