Special FPCA Homeowners Division Meeting Today at 2 p.m.

Apr 12, 2010

The FPCA Homeowners Division will be meeting via teleconference today at 2:00 p.m. to discuss the latest MGA proposal.  The call-in number is 800.369.1285; conference code:  81275#.

Attached is the latest draft of the MGA proposal that will be presented to Senator Atwater and Commissioner McCarty for final thoughts before the Senate Committee on General Government Appropriations’ meeting tomorrow, where it is expected to be offered as an amendment to SB 2044.

Additional major changes to this draft were discussed this morning, and include the following:

  • Possible change to surplus action level trigger to 20% from 15% (pages 2 and 9).
  • Section 628.252, on page 12, to specify that this provision applies to “property” insurers and is limited to contracts with “affiliates.”  Thus, the paragraph will begin with, “Every domestic property insurer shall notify the office of its intention to enter into all management agreement, service contracts, and all cost sharing arrangements with affiliates.”
  • Adding a provision stating that this law will not in any way abrogate or impair the office’s current authority, but rather supplements exisiting authority.

If you have any questions, please contact Katie Webb (kwebb@cftlaw.com).