Monday, May 9, 2011

H1087 mini-train

House Bill 1087, which started with a single provision governing nonrenewals and cancellations, ended up covering eleven different areas of insurance regulation. Here is a summary:

(1) For most P&C nonrenewal & cancellation notices, the required recipient is changed to the “first named insured” [this was the only provision in the original bill].

(2) For workers compensation: (a) prepaid cards allowed; (b) revises assessment cycle for the Special Disability Trust Fund; (c) establishes a cancellation effective date when cancellation is requested in writing by the insured; and (d) requirements for premium audits are eliminated, except as provided in the insurance policy, by order of the OIR, or at least once per policy period if requested by insured.

(3) For certain alien insurers (non-US insurers), provides an exemption from certificate of authority if they cover only non-US residents and meet other requirements.

(4) For audited financial statements, reduces period in which an insurer may use the same accountant or accounting partner to five years (per NAIC).

(5) For agent and adjuster license applicants, establishes crimes that bar application or delay when an application may be filed.

(6) For public adjuster apprenticeship license, allows applicant to qualify using two additional adjuster designations (Certified Adjuster and Certified Claims Adjuster).

(7) For self-insured corporations, provides that requests for liability coverage information must be sent by certified mail to the registered agent of the disclosing entity.

(8) For service warranty insurers, (a) allows consumer to purchase a motor vehicle service agreement for a negotiated premium; and (b) exempts service warranty entity from licensure requirements if the service warranties it offers are only offered, marketed, or sold to nonresidents of Florida.

(9) For private passenger auto insurance, an insurer is no longer required to collect the first premium payment in cash if automatic payroll deduction is used.

(10) For certain classes of surplus line products, new requirements for issuing in Florida.

(11) For person convicted of violating insurance fraud statute as result of receiving insurance proceeds from motor vehicle insurance contract, increases penalties.

This summary was prepared by Perry Cone and posted at

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