NU Online News Service, Jan. 26, 2:04 p.m. EST
The Florida Chamber of Commerce has thrown its support behind this year's omnibus insurance bill, which closely mirrors last year's version that was vetoed by then-Gov. Charlie Crist.
The bill, SB 408, is sponsored by Sen. Garrett Richter, R-Naples, who had also sponsored last year's bill, SB 2044.
With Mr. Crist now out of office, lawmakers are trying to pass the legislation again, and this time they are adding reforms to address sinkhole claims. During the last legislative session, the insurance industry chose to give up on pushing measures to address sinkhole claims in order to give SB 2044 a better chance of passing.
"This important legislation not only addresses the primary cost-drivers within Florida's insurance market, it will bring security and market predictability, and go a long way toward establishing much needed financial stability," said Adam Babington, vice president of government affairs for the Florida Chamber of Commerce, in a statement.
Last December, NU Online News Service reported on the rebirth of issues once addressed in SB 2044.
The Florida Senate Banking and Insurance Committee took up the bill on Jan. 25 and postponed a vote on it in order to fine-tune the measure. The committee will vote on the bill at its next meeting.
SB 408, among other things, looks to adjust the time period to file claims following a hurricane to three years from five years and includes regulation of public adjusters. The Florida Chamber of Commerce said the bill also requires new insurers to carry at least $15 million in surplus, rather than the old rule of $5 million. It will also allow insurers to pay actual cash value and withhold replacement cash value until a written contract for repairs is produced.
The new bill, if it tracks SB 2044, will give the Office of Insurance Regulation greater oversight of affiliated reinsurers and managing general agents. It would also address expedited filings for the cost of reinsurance.
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