Property reform: two steps forward, two ½ steps back

Property insurance bills moved forward, although not unscathed, during week three of the 2011 Florida legislative session. Here is a summary of last week’s activity:

• Big Property Bill/Sinkholes. SB 408 was voted out of the Senate Budget Committee, with some weakening. The Committee approved amendments sponsored by Sen. Mike Fasano that: (a) would repeal “use and file” for residential homeowners filings; and (b) watered down the insurance industry's attempt to bring replacement cost value (RCV) coverage more in line with national norms. The Senate bill has now been the subject of five committee meetings (two in Budget, three in Banking and Insurance), plus workshops.
• Report Card for Residential Property Insurers.  The Florida House voted 83-34 in favor of HB 4115, which would repeal the requirement that the Insurer Consumer Advocate implement a report card grading system for residential insurers.  The companion bill (SB 1462) has not been heard by the Senate Banking and Insurance Committee, although repeal of the insurer report card is contained in big property/sinkhole package (SB 408) voted out of the Senate Budget Committee last week.

This summary was prepared by Perry Cone and posted at www.tallyinslaw.com/

Legal Notice and Disclaimer