As noted in my previous legislative update, the Florida Legislature continues to move quickly on several relevant insurance bills. Today marks the midway point in the 2012 legislative session, and we’ve seen a lot of activity on insurance related bills in recent days. Many of the most egregiously anti-consumer bills have steadily move their way through the committee process, with only one or two stops left before a floor vote. Conversely, almost all of the bills we identified early on as pro-consumer seem dead on arrival – the exception being HB 1127 and SB 1347.

So far only one of the bills we have been tracking has made it to the floor. Unfortunately, that bill, HB 245 – An act relating to the Depopulation of Citizens, is just about the worst legislation offered this session, and it passed on Friday by a vote of 66 to 48. [Read More Here]

That bill’s senate companion, SB 578, is in its final committee, and will most likely be heard in the Budget committee on Wednesday 2/15 or Thursday 2/16. I cannot urge you strongly enough to call your senator and tell them that you do not support pushing Citizens customers into unregulated surplus lines carriers. Here is a list of the members of the committee: Budget Committee Members.

While I agree that we need to shrink Citizens Property Insurance Corporation, but this is simply not the right way to do it. Under this legislation, over 1.5 million Floridians could see their rates increase exponentially in the coming years and, because surplus lines carriers are not included in FIGA, there would be no guarantee that claims would be paid in the event of a large catastrophe.

Along with the legislation I have mentioned, there has been some other action on insurance related bills this week:

  • HB 245 – Relating to Depopulation Programs of Citizens (Boyd)
    • Would allow surplus lines carriers, which are not subject to the same state regulation as admitted carriers, to participate in the Citizens Property Insurance Corporation depopulation program.
  • SB 578 – Relating to Depopulation Programs of Citizens (Richter)
    • Would allow surplus lines carriers, which are not subject to the same state regulation as admitted carriers, to participate in the Citizens Property Insurance Corporation depopulation program.
      • In the Budget Committee (its final stop) on Wednesday or Thursday.
  • HB 1127 – Relating to Citizens Property Insurance Corporation (Albritton)
    • Would require that the bulk of any Citizens deficit be recouped via emergency assessments, which can be spread out over several years, rather than all at once in a regular assessment.
    • Favorable by Economic Affairs Committee; 9 Yeas, 5 Nays on 2/8
    • Place on Floor Calendar, 2nd reading on 2/9
  • HB 4169 Relating Insurance Company Excess Profits (Davis)
    • Revises provisions prohibiting insurance companies from realizing excessive profits for writing certain lines of insurance coverage to delete workers’ compensation & employer’s liability insurance coverage from a list of lines for which excessive profits are prohibited
    • Voted Favorable by Economic Affairs Committee; 13 Yeas, 3 Nays on 2/8
    • Placed on Calendar, 2nd reading

For more information on these bills and more, visit www.PolicyholdersOfFlorida.com and click on the “Bills to Watch” button on the right side of the page. We will keep the page current, and continue to update you as more bills make their way through the legislative process.