Florida: House, Senate at Table on Punitive Insurance Package

Negotiations between the House and Senate are underway on Florida SB 2860, the omnibus insurance package full of punitive industry provisions.

NAMIC sent out a Member Alert Wednesday with news of the bill’s passage in the Senate. NAMIC also issued a statement to the media, warning of dire consequences for consumers and the private marketplace if SB 2860 becomes law. “This bill attempts to punish insurance companies with increased authority by the Office of Insurance Regulation at the expense of encouraging a competitive environment that would provide more choices for consumers,” said Liz Reynolds, NAMIC’s Southeast state affairs manager.

With only this week and next week remaining in the session, negotiations on SB 2860 are likely to proceed at warp speed. Some House members have stated publicly that they are opposed to the punitive measures in the bill. It was uncertain at Advocacy Update publication time if the bill will be taken up in committee or go straight to the floor for debate.

The Florida Association of Insurance Agents has mounted public affairs and grassroots campaigns to lobby for continuation of new wind-only policies from Citizens Property Insurance Corporation. SB 2860 would prohibit new wind-only policies in the Citizens High Risk Account beginning this summer, although existing policies could be renewed.

In other Florida hurricane insurance news, the House Policy and Budget Committee approved a bill to reduce Cat Fund liability by $3 billion. HB 7021 is the result of intense lobbying by Chief Financial Officer Alex Sink. She told the committee “a wide range of supporters” is behind the bill because “they get it. They understand we’re bearing a lot of risk.”

Direct questions to NAMIC State Affairs Manager Liz Reynolds.

Posted: Tuesday, April 22, 2008 12:00:00 AM. Modified: Tuesday, April 22, 2008 4:34:47 PM.

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We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.