FPCA Homeowners Division: Feedback Requested on Insurance-Related Pending Legislation
Apr 20, 2009
The Florida Property and Casualty Association (“FPCA”) Homeowners Division held a conference call on Friday, April 17, during which members discussed specific proposals and strategies for the final two weeks of the 2009 Legislative Session.
Among the suggestions made during the call was for the FPCA to submit a list of legislative proposals to key lawmakers that could be considered as possible amendments to pending insurance-related bills, such as Senate Bill 742 relating to Sinkhole Losses and its companion, House Bill 351.
This “wish list” of proposals then could be activated in this manner as the various property insurance-related bills are negotiated between the House of Representatives and Senate, with the understanding that many political factors not related to policy can determine the outcome of pending legislation.
Feedback on the following issues is requested. Please include suggested statutory changes where applicable:
- Expanding the scope of SB 742/HB 351 statewide;
- Including Citizens Mission Review Task Force recommendations;
- Reauthorizing the Florida Hurricane Catastrophe Fund (“FHCF”) to offer the $10 million layer for limited apportionment companies; and
- Ensuring predictability in the Temporary Increase in Coverage Limits (“TICL”) layer of coverage in the FHCF.
FPCA members also discussed Senate Bill 2036 relating to Residential Property Insurance. This bill authorizes certain insurers to use a rate in excess of a filing approved by the Florida Office of Insurance Regulation in certain circumstances. Suggested changes to this bill include:
- Stating that SB 2036 applies to “-A” reinsurers as well as “A” rated reinsurers;
- Amending SB 2036 in order that companies receiving State Board of Administration (“SBA”) funds participate as an “or” condition;
- Eliminating the requirement that a company cannot participate in TICL, since it is a contradiction to the intended purpose of the SBA match fund;
- Preventing a participating company from “sheltering” surplus by requiring the company to consider the profitability of all lines it writes in the State when determining an unapproved rate;
- Requiring that, in order for a company to place at a higher unregulated rate, an agent must furnish a customer with at least two quotes, one of which may be from Citizens Property Insurance Corporation; and
- Amending the surplus writing ratio to 3:1, rather than 2:1.
We have attached copies of recent amendments filed to HB 419 relating to Condominiums and loss assessment coverage. Please also review and provide input.
Please e-mail any comments and/or suggestions to Katie Webb, email@example.com.
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