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
|
Statute/Issue |
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:
|
|
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 |