A. The bill is law — unclear as it may be. We at FAIA are actively working with the major players involved in the whole condominium insurance issue on a bill that will clarify, change and eliminate some of the problems associated with HB601. That bill, however, won't even be introduced until the 2009 regular session, so it's almost impossible for any statutory changes to take place before about July. I'd stress again — HB601 is the law.

Q. A change that took effect Jan. 1 requires special assessment coverage. Can you explain that in greater detail?

A. You won't find the term "special assessment" in a homeowners' policy; you find "loss assessment" coverage. In a letter to Insurance Commissioner Kevin McCarty, the bill's sponsor, Sen. Dennis Jones (R-Seminole), stated that the "intent" of the Legislature was, in effect, to require that the typical HO-6 type unit owner's policy include $2,000 of loss assessment coverage. Most policies today come with only $1,000, although a few carriers issue the policy at higher limits. Most insurance professionals feel that if the policy includes at least $2,000 of loss assessment coverage, then the "intent" of the Legislature has been met. This is an issue we are working on in the proposed 2009 bill.

Q. Given today's real estate market, do you get a lot of questions regarding the mandatory "independent insurance appraisal" that is now required of condo associations every 36 months?

A. The questions typically involve only issues like what the term means and what meets the statutory requirement. Some carriers already require this, so it's not been a huge issue.

Q. Did the new statute change how the condo association's deductible is determined?

A. The association still selects the deductible. The statute says that the deductible (I'm paraphrasing here) must be consistent with other similar condominiums, and must be selected after looking at the available funds on hand, combined with the assessment potential. The deductible must be selected by the board at a meeting open to all members of the association.

Q. Have you been hearing that the changes in the statutes have made it tougher for condo association boards to know what their responsibilities are and what coverages they now need?

A. No doubt, associations are puzzled over what their responsibility is when it comes to unit-owner coverage. We advise our members that if an association asks them what to do, the inquiry should be referred to the association attorney. The association or unit owner has to request coverage; it's the agent's job to place the coverage requested, not select it.

Q. How do you think the implementation will play out regarding HVAC (heating, ventilation and air-conditioning) equipment that now is not being excluded in association master policies?

A. One key point is that the statute addresses insurance responsibility, not the responsibility to maintain. A worn out HVAC unit in need of repair or replacement is not an insurance issue, and shouldn't be addressed by an insurance professional. The association clearly needs to advise the agent how much to increase the master property policy to account for the HVAC equipment. Failure to do so could result in a coverage shortfall and/or coinsurance penalty. It's not the agent's job to select an increased amount of coverage.

Q. Of the 2008 changes, which one is causing the most confusion?

A. Clearly the "additional named insured" requirement on the HO-6 policy is the most troublesome issue. Companies are all over the map on how they are handling this, and none of the memos I've seen comply with a literal reading of the statute. This is an issue we are working on in the "fix bill" for 2009.

Q. How do you help FAIA members keep up with legislative and regulatory changes?

A. We have a monthly "Agents' Education" bulletin we e-mail to our members that includes regulatory and legislative updates and other industry news.

As soon as HB601 was passed, the calls and e-mails started – often scores per day. We have addressed the condo situation in almost every newsletter since August. Our Web site has several new (and many updated) articles dealing with the issue. Also, we are offering a new class titled, "Condominium Update and Wind Mitigation," around the state in 22 cities from January through about April. I've spent four to five months researching and preparing for that class. We've worked with all the major players involved, including the Department of Financial Services, trying to sort out all the misinformation out there. If our members read our material and attend our class, they will get the latest (and, I might add, most correct) information available.