News & Updates


Highlights of 2008 Insurance Property Bill

As we previously reported, the 2008 insurance property bill of the Florida regular session passed on May 1, 2008.  The bill has been enrolled and is waiting to be sent to Governor Crist.  We have created a table highlighting the provisions are also providing a link to the enrolled bill.

                               SB 2860 Summary


Summary of Provisions
215.5595 – Insurance Capital 
Build-Up incentive Program
Extends the capital build-up program with another round of funding up to $250 million
624.3161 – Market conduct exams Allows OIR to direct an insurer to submit its claims-handling procedures, subject to the insurer’s administrative rights
624.4211 – Fines Existing penalty amounts are doubled 
624.4213 – Trade secrets  Codifies the procedures for designating and protecting trade secrets 
624.4305 – Residential nonrenewals Requires an insurer planning to nonrenew more than 10,000 policies in a 12-month period to notify OIR 
626.9521 – Unfair insurance trade practices  As with penalty provisions, amounts are doubled 
626.9541 – Unfair insurance trade practices  Would require an insurer to pay undisputed amounts of partial or full first-party benefits under property policies within 90 days 
627.0612 – Administrative hearing Establishes that certain issues are findings of fact to be resolved by administrative law judge and allows the ALJ to approve, modify or reject rates
627.062 – Rate standards

Extends prohibition on use-and-file for one more year

Repeals arbitration

Makes specific changes to factors to be considered in rate filings

Provides for expedited administrative hearing in rate disputes and requests expedited appellate review

627.0628 – Modeling Commission Specifies that insurers must use commission-approved models without modification when projecting hurricane losses for rate filings and PML
627.0629 – Residential property rate filings Requires correlation between mitigation discounts and uniform home grading scale by 2011
627.351 – Citizens

Makes several changes, including:

  • Eliminates distinction between homstead and non-homestead property
  • Prohibits properties valued over $1 million as of 1/1/09
  • Reduces regular assessments to 6%
  • Allows Citizens policyholder surcharge; surcharge capped at 15% instead of 10%
  • Requires Citizens to make an actuarially sound rate filing by July 15, 2009 and each year thereafter (effective no earlier than 1/1/2010)
  • Repeals outdated provision requiring forced-purchase of bonds 

627.4133 – Notices of cancellation/nonrenewal 

REquires 180 days’ advance notice of nonrenewal, cancellation, or termination of a residential policy if insured for 5 years 

689.262 – Sale of residential property Requires disclosure of property’s windstorm mitigation rating to the buyer for properties in wind-borne debris region
627.06281 – Public model Provides residential insurers access to the public model for use in ratemaking; fee schedule to be promulgated by OIR by 1/1/09
627.0655 – Multi-policy discounts  Allows multi-policy discounts when the residential policy is with Citizens as long as the servicing agent is the same 
Citizens Task Force Creates a task force to study how to restore Citizens to being a residual market
CFO Report Requires the CFO to prepare an annual report describing the fiscal impact on the State of Florida from a 100-year event
Rate Transparency

For residential property filings after 7/1/08, requires the OIR to maintain a website showing the amount of the insurer’s initial request and the amount of the final rate approval

Requires the OIR to publish certain aspects of its review process and findings

Limits ability of OIR to claim attorney-client or work product exemptions for rate information

FHCF Low Layer – 215.555 Extends the low layer of FHCF for certain insurers for one more year
Mortgage Company Notice – 627.712 An insurer writing an ex-wind policy must notify the mortgage company that its policy does not include wind coverage

 CS/CS/SB 2860 – Insurance