Insurance resources posted for September & August

Just in case you haven’t kept up ... new reports and presentations for September and August are posted on the "2012 Resource Library" tab of TallyInsLaw.com, including:

Property & casualty:

• "Impact Analysis of HB119," the independent actuarial study of savings expected from the 2012 PIP (no-fault auto insurance) reform law (Aug. 20, 2012).

• Office of Insurance Regulation's caveats on the "Impact Analysis of HB119" (Aug. 21, 2012).

• "Historical U.S. Hurricanes That Would Cause $10 Billion or More in Insured Losses Today," a report by Karen Clark & Company (Aug. 21, 2012).

• "Twenty Years of Progress: Advances in the Property Insurance Industry Since Hurricane Andrew," a special report from Property Casualty Insurers Association of America (Aug. 22, 2012).

• Citizens' Rate Hearing Press Kit - a summary of Citizens' proposed rate increase proposal for 2013 (Sept. 20, 2012).

• OIR announces Citizens take-out approvals - nearly 300,000 policies have been approved for removal from Citizens in non-bonus and non-loan takeout plans (Sept. 24, 2012)

Life & health:

• Long-term Care Managed Care Technical Advisory Workgroup Final Report (Aug. 21, 2012).

• Allianz Life Insurance Co. multi-state settlement agreement and OIR press release (Sept. 4, 2012) regarding sale of fixed annuity products.

This summary was prepared by Perry Cone and posted at TallyInsLaw.com.
Legal Notice and Disclaimer

Resource library updated - P&C and Health Insurance

If you haven't visited it recently, the 2012 Resource Library has been updated. June-July additions marked with an * include the following resources:

• Citizens SB408 sinkhole savings actuarial analysis, depopulation committee exhibits, and 2013 rate filings exhibits (bottom of heading no. 2. Citizens).

• OIR's Order suspending prior-approval requirement for P&C form filings (bottom of heading no. 4. Property Insurance).

• State of the Florida Homeowners’ Insurance Market presentation by OIR Commissioner Kevin McCarty (bottom of heading no. 5. General Insurance).

• Health insurance presentations by OIR to the Florida Health Insurance Advisory Board (bottom of heading no. 9 Health Care).

This summary was prepared by Perry Cone and posted at TallyInsLaw.com.

Legal Notice and Disclaimer

Citizens assessments reduced in last bill passed 2012 session

There's good news for Florida's property insurance market. It took all session, but at 11:30pm this evening the Florida Legislature approved a bill that reduces the regular assessments of Citizens Property Insurance Corp.

Saturday surprise - Cat Fund in play last week 2012 session

In a surprise move on Saturday morning, a Senate committee attached a watered-down Cat Fund reform measure onto the Citizens assessment bill, SB 1346. The combined Citizens/Cat Fund bill is now ready for final consideration this coming week (last week of 2012 session).

Week 8, 2012; action shifts to Senate; one week to go

It’s finally here! The last week of Florida’s 2012 legislative session. No insurance bill has yet to pass both the House and Senate.

Seventeen bills have been passed by the House and are ready for Senate floor action. Some will pass, some will fail. Which way they fall by Friday, March 9th (end of session) is anyone’s guess right now.

Below is an update on three highly-controversial insurance measures (including PIP), followed by a summary of the quiet ones.

Week 7, 2012 report - House continues to take lead

With two weeks left to go, if nothing else, give the House credit for making substantial progress on insurance legislation – even if the final outcome remains in doubt. During week 7 of Florida’s 2012 legislative session, an additional seven bills were passed by the full House and four more were approved by their last House committee.

This brings the total to fourteen measures that have passed the House. Only one of these bills, however, has been approved by final Senate committee action, and none has come to a vote on the Senate floor. A few are scheduled for Senate committee hearings during week 8.

Below is a summary of week 7 action:

Mid-session report - week 5, 2012

The middle of week 5 marked the mid-point of Florida’s 2012 legislative session. Of the 30 or so insurance measures I have been following, 11 inched forward last week.

There are now four weeks left to go, with the session scheduled to end on March 9, 2012. Below is a combined week 5 update and mid-term report on a select dozen insurance matters – four of the more controversial issues still kicking around, four bills that seem poised for passage (eventually), and four that appear dead for the session.

Passed House or ready for House vote, end of week 5, 2012

Seven insurance bills have either been passed by the Florida House of Representatives or approved by all required House committees, as of the end of week 5, 2012 Florida legislative session. All are waiting for additional committee action in the Senate.

The following measures have passed the House as of the end of week 5:

Week 3 insurance recap (2012 session): bad faith fails; but advancement on large list, including PIP, Citizens, title insurance, warranty, Medicare, commercial, property, and motor vehicle

With one very notable exception, this was a good week for insurance legislation in Tallahassee, Florida. Below is a summary of committee action on 9 important and minor measures during week 3 (2012 legislative session).

Property insurance reform has productive Week 2 in 2012 Florida Legislature - Citizens and Cat Fund called Florida's "two sick children"

Two initiatives intended to further reform Florida's property insurance market were heard in committee during week 2 of Florida's 2012 legislative session. The reforms are directed at both Citizens Property Insurance Corporation and the Florida Hurricane Catastrophe Fund, characterized in House debate as Florida's "two sick children."

Insurance legislation resources update 2012

The 2012 Legislative Resources tab of TallyInsLaw.com has been updated with the addition of these new items:

• YouTube Video advocating the downsizing of the Cat Fund (Jan. 18, 2012).
• Workable Solutions for Florida’s Challenging Insurance Problems – thoughts on PIP and property insurance reform, by The James Madison Institute (Jan. 2012).  
• Citizens Property Insurance Corp., CEO Presentation to Financial Services Commission (Governor and Cabinet) – progress made in operational and underwriting changes to downsize Citizens (Jan. 18, 2012).

This summary was prepared by Perry Cone and posted at TallyInsLaw.com.

Legal Notice and Disclaimer

Week 1 - 2012 Florida Legislature: rapid start for PIP, Citizens depop, captives

The 2012 legislative session got off to a rapid start – from an insurance perspective – with important and minor bills moving through the committee process.  Here’s a summary of week 1 action:

• PIP in the House – Emergency Care Coverage substituted for PIP.  The House Insurance and Banking Subcommittee approved HB 119, an aggressive reform package that would replace personal injury protection (PIP) motor vehicle insurance with new Emergency Care Coverage (ECC).  Under this initial version of the House bill, ECC would provide hospital emergency room treatment within the first 72 hours following an accident.  After the emergency, covered treatment would be confined to a very limited group of health care providers (medical physicians, osteopathic physicians, dentists, physician assistants, and registered nurse practitioners).  Also in the package are significant legal reforms, including caps on attorney fees.  This House bill is highly controversial and likely to go through many changes.  For further detail, see House Staff Analysis of HB 119 (Jan. 10, 2012). 

Demotech's Florida property insurance reports

Two reports related to Florida's property insurance market have been released by Demotech, Inc., a financial analysis firm.  Last month's report is Impact of Storms on the Florida Property Insurance Market 1990-2010 (Dec. 2011), which reflects Demotech's research of "the tropical cyclones that impacted Florida over the past twenty years and how these cyclones influenced the insurance industry and the success of Florida insurance companies."  See Demotech abstract.

This month's release is Comparative Expense Study of Citizens Property Insurance Corporation (Jan. 2012), which finds that "expense levels of Citizens compare favorably to other property writers focused in a single state."  According to the abstract:

Week 6: "busy" week for Florida insurance reform legislation

Six of the key insurance bills I'm following had action in the House or Senate (or both) last week -- Week 6 of the Florida 2011 Legislative Session.  So I think that it's fair to say that last week was a "busy" one.  Next week (Week 7) will be relatively quiet, as the Senate is in recess all week for the Easter/Passover Holidays, and the House meets only on Wednesday (April 20) and Thursday (April 21).  

When the Legislators return, only two weeks (8 & 9) will remain in the Regular Session (unless extended).  There are still many differences to resolve between House and Senate versions of the bills, and most bills contain highly controversial provisions.

Here is a summary of action last week:

Property insurance reform inches forward during week 4

Here is a run-down on key property insurance bills during week 4 of the Florida 2011 legislative session:

• 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.

YouTube video on Citizens bill stars Sen. Alan Hays

 
Even Florida State Senators are on YouTube these days.  Senator Alan Hays uses YouTube to air his views on Senate Bill 1714 to shrink Citizens Property Insurance Corporation.  To watch, go to this link:
http://www.youtube.com/watch?v=0ycMKR4zzXw.

Citizens bills approved by two committees in week 4

Companion bills intended to restore Citizens Property Insurance Corporation back to an “insurer of last resort” were approved by Senate and House committees last week.  Both bills raise the so-called annual “glide path” for increasing Citizens’ rates toward actuarial soundness. 

Citizens - controversial bills filed for 2011 Session

Bills have been filed in the Florida Senate and House to modify the statute of Citizens Property Insurance Corporation, Florida's largest property insurer and a state government residual market entity.  The Senate Bill, SB 1714, was filed by Senator Alan Hays.  In 2008 Senator Hays sponsored a bill establishing the Citizens Mission Review Task Force, which made recommendations to begin returning Citizens to a more traditional "market of last resort."  The House Bill, HB 1243, was filed by Representative Jim Boyd.

The bills are likely to be controversial.  In summary, they would:

Former Citizen Property Insurance General Counsel Joins GrayRobinson

TALLAHASSEE, FL -- December 17, 2009 -- Perry Cone, former general counsel of Citizen Property Insurance Corp. and Travelers of Florida, has joined the Tallahassee office of GrayRobinson, P.A. His addition to the firm signals the launching of an insurance operations and regulatory practice and the continued expansion of its government law practice group. Perry's practice will focus on insurance, government law, strategic litigation and corporate finance.