Insurance Omnibus Bill (CS/CS/HB 1101) Now Goes to Florida Governor Rick Scott for Action

Mar 8, 2012


A Committee Substitute for Committee Substitute for House Bill 1101, the omnibus insurance bill sponsored by State Representative Mike Horner, unanimously passed the Florida Senate today, March 8, 2012 with no additional amendments.  The Florida House of Representatives had unanimously passed the bill on February 29, 2012.

The bill makes changes to various types of insurance as follows:

  • Expands the coverage of travel insurance and expand who can be licensed to sell travel insurance;
  • Exempts certain employees of licensed insurance agents or licensed insurance adjusters selling portable electronics insurance from having to be licensed as an insurance adjuster;
  • Allows the Florida Department of Financial Services to give licensure exams in Spanish;
  • Provides a definition of “rebate” to be used in sinkhole repairs;
  • Exempts salvage motor vehicle dealers from having to carry garage liability or personal injury protection (“PIP”) insurance;
  • Allows for cancellation of a policy for reasons other than a check being canceled or dishonored;
  • Prevents an insurer that provides PIP benefits to an occupant of a taxicab, or to someone struck by a taxicab, from having a right of reimbursement against the owner or registrant of the taxicab;
  • Conforms the interest on overdue PIP benefits to the rate of interest on judgments generally;
  • Allows the receiver of an insolvent insurer to pay interest on claims and specifies the priority of the interest payment;
  • Requires Citizens Property Insurance Corporation (“Citizens”) to offer a basic perils policy and specifies methods of replacement cost valuation to be used by Citizens;
  • Allows surplus lines insurers with a Demotech Financial Strength Rating of A or better to participate in the Citizens’ depopulation program as long as other conditions of participation are met, and if HB 245 passes;
  • Makes alteration of a certificate of insurance a violation of the unfair trade practices act.
  • Adds the language from CS/HB 409 by State Representative Ed Hooper relating to alien insurers which clarifies that alien insurers with affiliates are not disqualified from obtaining an exemption for a certificate of authority, allow for trusts to also qualify for an exemption;
  • Adds the language from CS/CS/379 by State Representative Jeanette Nunez relating to captive insurers which provides a structure for captive formations and requirements;
  • Provides clarification that a nonrenewal notice need not be provided if the insurer offers to renew the policy; and
  • Provides that mandated benefits do not apply to limited benefit health insurance policies such as dental, vision or long-term care and allow small bank health insurance pools to cover 50 or fewer employees.

CS/CS/HB 1101 now will be sent to Florida Governor Rick Scott for action.


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