We are fast approaching Springtime in Tallahassee and the annual pilgrimage of politicians, lobbyists, media pundits, and various interest groups to our unassuming state capital. Our man in Tallahassee, Gary Fineout, will be reporting on all the legislative happenings with a cover story in our March issue and feature articles in April and May. In anticipation of the March 2 opening day, I offer some thoughts on what we might expect Gary to be covering for us.
The elephant in the room will, once again, be property insurance. Sen. Michael Bennett (R-Bradenton) and Rep. Bill Proctor (R-St. Augustine) have introduced companion bills SB 876/HB 447 to their respective chambers that would allow Florida residential property insurers to charge rates in excess of the rates approved by the Office of Insurance Regulation (OIR). Widely referred to as the "Consumer Choice" bill, the legislation has strong proponents and opponents, as did similar legislation from Bennett and Proctor in 2009. Already lined up on the nay side are Florida Insurance Consumer Advocate Sean Shaw, the Florida Public Interest Research Group, and the Florida Consumer Action Network, among others. Gov. Charlie Crist vetoed the 2009 version of the bill; a change of heart is not expected. The bill would become effective January 1.
SB 352 by Sen. Charlie Dean (R-Inverness) holds the OIR's feet to the fire, requiring the office to provide policyholders with written notice when their coverages are about to expire. It also requires OIR to provide written instructions on how policyholders can contact brokers, agents, or counselors to help them select and obtain new coverage or change their existing plans. The bill would become effective July 1.
SB 740, another bill offered by Sen. Bennett, requires the Florida Financial Services Commission (the governor and Cabinet) to reconfirm the appointment of the director of the OIR every two years. According to the bill, the "commission shall appoint or remove each director by a majority vote consisting of at least three affirmative votes, with both the Governor and the Chief Financial Officer on the prevailing side." Given the widely disparate views of Gov. Crist and CFO Alex Sink on Insurance Commissioner Kevin McCarty's performance, this requirement to reconfirm his appointment could be a real gunfight. The bill would become effective July 1.
In what will surely provoke a fight, SB 662 from Sen. Ronda Storms (R-Bradenton) prohibits auto insurers from using credit scores and credit reports when determining individual rates. Specifically, the bill "prohibits an insurer that issues motor vehicle insurance from using a rate, rating schedule, rating manual, or an underwriting rule that is not contained in a rating manual and is determined in whole or in part on the basis of certain characteristics of an insured." The bill would become effective July 1.
In addition to these bills, we can expect heated debate about wind mitigation credits, health care, auto insurance fraud, and public adjusters and homeowners' claims. Sinkholes may get some attention, given the recent cave-in on Interstate 4 near Plant City. Workers' compensation always earns some floor time, although it probably will take a back seat this year to more pressing matters.
Also, look for Consumer Advocate Shaw to be front and center on a variety of topics. Since his appointment to the office by CFO Sink in October 2008, the affable Shaw has become a visible force in the public arena and at industry events. He has already come out publicly for or against a number of proposed bills, ranging from SB 516/HB 275 on prescription drug insurance coverage (for) to the aforementioned negative stance on "Consumer Choice."
To all of this, factor in that Gov. Crist, Attorney General Bill McCollum, and CFO Sink are all running for offices other than their current ones, and we have the makings of a session for the ages.
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