- Rates for Property Insurance. The House Insurance & Banking Subcommittee (HIB) voted to eliminate the “flex rating”/“choice” proposal from H 885 and replace it with an expansion of the expedited process for recoupment of reinsurance costs that is currently in place. The HIB-approved bill would allow an insurer to request a recoupment rate increase of up to 15 percent per policyholder (compared to 10 percent under current law), and permit the filing to include related expenses and profits (not permitted under current law). Flex rating is still contained in the Senate bill (S 1330) that has been approved by two Senate committees.
- Citizens reform. Companion bills intended to restore Citizens Property Insurance Corporation back to an “insurer of last resort” were approved by committees in both the Senate and House. The Senate version (S 1714) was approved by the Senate Banking & Insurance Committee on Tuesday, while the House bill (H 1243) was approved by the House Insurance and Banking Subcommittee on Wednesday. For more on the Citizens’ bills, including Sen. Alan Hays' YouTube video, go to Citizens posts on TallyInsLaw.com.
- Commercial Rate De-regulation. The House unanimously passed H 99 on Thursday. The Senate companion bill (S 178) is pending before the Senate Budget Committee. For more information on these bills, go to Commercial property posts on Tallyinslaw.com.
- Big Property/Sinkhole Package. There was no movement this week, as the House Insurance & Banking (HIB) Subcommittee did not take up H 803, as had been expected.
- Report Card for Residential Property Insurers. There were no votes this week, but there was some press regarding the bills (H 4115/S 1462) that would eliminate the report card requirement. Compare Paige St. John's unfavorable article, State insurers graded on how they handle claims, with Lynn McChristian's supportive blog post, Insurer report card gets a failing grade.
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