Senate Committee Temporarily Passes Residential Property Insurance Bill With Numerous Amendments; SB 2044 To Be Reconsidered April 13
Apr 6, 2010
As part of its meeting agenda today, April 6, 2010, the Florida Senate Committee (“Committee”) on General Government Appropriations considered Senate Bill 2044 relating to Property Insurance by the Senate Committee on Banking and Insurance and Senator Garrett Richter. However, because of the complex nature of the proposals and related controversial provisions, the bill was temporarily passed and is scheduled to be reconsidered by the Committee during its April 13 meeting.
SB 2044 would make numerous changes to Florida insurance laws primarily relating to residential property.
While some amendments were adopted to SB 2044 today, others were withdrawn or temporarily passed (but not adopted).
Following is a brief review of the Committee’s actions on the amendments:
- Amendment 213526 by Senator Charlie Dean relating to certifications of rate filings was temporarily passed.
- Amendment 482592 by Senator Dean relating to mitigation discounts and the use of debits was passed.
- Amendment 271686 by Senator Dean that extends the current boundaries of the high-risk area eligible for wind only coverage through December 1, 2012 was passed.
- Amendment 973696 by Senator Dean that is considered to be technical and clarifying to Citizens Property Insurance Corporation’s (“Citizens”) requirement for notice of non-renewal was passed.
- Amendment 302452 by Senator Dean that would provide $283,700 to fund the placement of comparative homeowners’ insurance rates on the Florida Office of Insurance Regulation (“OIR”) Web site was passed.
- Amendment 901794 by Senator Dave Aronberg relating to multi-peril crop insurance passed with minimal discussion.
- Amendment 226802 by Senator Aronberg relating to insurance cancelations was temporarily passed.
- Committee amendment 702972 by Senator Carey Baker relating to managing general agents was temporarily passed. Senator Garrett Richter noted that the OIR is collaborating with insurance industry representatives on the legislation in anticipation of finding common ground.
- Amendment 772662 by Senator Dean that would limit the initial payment of a claim to 50 percent of the replacement cost value for personal property and actual cash value for residential structures was temporarily passed.
- Amendment 302452 by Senator Dean requiring the OIR to notify and assist residential property owners with the termination of their homeowners’ insurance was withdrawn.
- Amendment 784736 by Senator Dean, a substitute for amendment 894358 (also by Senator Dean) that would reform Florida statutes relating to sinkhole claims was temporarily passed. Industry representatives spoke in favor of the amendment. Trial Bar representatives opposed it.
- Amendment 779514 by Senator Dean providing for anti-fraud measures in relation to home inspections and the process of validating windstorm mitigation verification forms was passed.
- Amendment 462250 by Senator Dean relating to the notice of “change in policy terms” was passed.
After being considered by the Committee again on April 13, SB 2044 must proceed through the Senate Committee on Rules.
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