Do You Know How Incredible You Really Are?
You will recall that we took the opportunity a couple of weeks ago to brag on one of our great team members here at LMA. Needless to say, we are proud of the folks that make up our little group. We are also, however, equally proud of the folks who work with us every day and never make it into the LMA Office. We know how talented and focused you are on the hard work we all do every day. It is a joy and pleasure to be amongst the team of truly INCREDIBLE movers and shakers of our state. Let’s never lose sight of appreciating each other and making sure we take the time to say, “THANKS”, every day. As we shared with you at the end of our last newsletter, this past week the Legislature took a break for Easter but will crank up this week in anticipation of the final two weeks of session. Since it was quiet last week, we thought you would like to know the status of the bills we are tracking for you. But first, however, we must make a correction regarding an article from our last newsletter published on April 14. In our article about House Bill 1109 titled, “House “Mini” Omnibus Bill Approved In Committee Stop” we erroneously attributed sponsorship of the bill to Rep. Charles Hood (R-Volusia). HB 1109 is actually sponsored by Rep. John Wood (R-Polk) and we extend our apologies to Representatives Wood and Hood for any inconvenience our error has caused. Both of these members are incredible public servants and its no coincidence that their names are similar! We appreciate them so very much for both carrying reasoned insurance legislation. And now, we will briefly report on the status of the bills we’ve been closely following for you this session:
FIGA Assessment Reform
HB 143 & SB 346: House version is through all committee stops and could be heard on the House floor at the discretion of leadership. Proponents of this bill were successful in having the language in SB 346 amended on to SB 870. SB 870 is scheduled to be heard in its last committee stop today at 1:00 p.m. If approved by the Senate Rules Committee, it’s off to the Senate floor for SB 870. SB 870’s companion, HB 375 is now in Senate messages so the final action on this bill will most likely occur the last week of session.
Insurance Omnibus Measures
HB 565 & SB 1260: House version reached final passage on the House floor on April 3. House sent its passed bill to the Senate on April 9 where it is in messages awaiting the Senate bill to move. SB 1260 is scheduled to be heard tomorrow (4/22/14) in Senate Appropriations Committee and it will then, assuming it passes Senate Appropriations, be considered on the Senate floor.
Citizens Property Insurance Corporation Reforms
HB 1109 & SB 1672: The most extensive package of reforms this session was developed by the Senate Banking & Insurance Committee and Chairman David Simmons (R-Seminole/Volusia). The Senate package (SB 1672) has cleared all of its committee stops and could be heard on the Senate floor when leadership desires. A much leaner House proposal (HB 1109) has also won approval in its two committees of reference and is now ready for action on the House floor. It remains to be seen where this session’s final debate on Citizens will land. Will it mirror last year’s action where the House prevailed and only truly non-controversial measures regarding Citizens will reach final passage? Or will the Senate prevail and move issues for Citizens reform that are not agreeable to all stakeholders? We will keep you posted!
Citizens Sinkhole Stabilization Managed Repair Program
HB 129 & SB 416: These bills establish a mandatory Citizens Sinkhole Repair Program effective March 31, 2015 to make certain sinkhole repairs are done by corporation approved repair contractors, instead of claimants receiving large indemnity payouts. The proposed repair program is essentially identical to the voluntary program Citizens is already developing. The main difference between the sinkhole repair program in current use at Citizens is that usage of the program created by this legislative measure mandates Citizens policyholders to use the panel of sinkhole repair professionals established by Citizens. This legislation has generated significant controversy with trial lawyers fighting it every step of the way. HB 129 was passed by the full House on April 11. SB 416, which now differs significantly from the House version, has been languishing in the Senate Appropriations Committee since March 14.
CAT Fund Reform Endeavor
HB 391 & SB 482: When originally filed at the beginning of session, these bills would have significantly reduced the size of Florida’s CAT Fund. However, at this point both bills have been completely re-engineered to provide a stable funding source for Florida State University’s Catastrophic Storm Risk Management Center. Both bills have successfully navigated all committee stops and could be heard on the chamber floors at the discretion of House and Senate leadership.
Flood Insurance Legislation
HB 879 & SB 542: House version of the legislation successfully passed its final committee stop (Regulatory Affairs Committee) on April 10. Senate version approved by the full Senate on March 26 and sent to the House via messages on April 1. One key provision (ability to insure only up to balance on mortgage) in the Senate bill is proving to be a major sticking point between the two chambers and could put the entire effort in jeopardy. Please click HERE for a side by side comparison of both bills for your reading pleasure.
Insurance Consumer Advocate and Homeowners Insurance Policyholder & Claims Bill of Rights Working Group Legislation
CS/HB 743 & CS/CS/SB 708: The legislation originally recommended by this DFS sponsored Working Group was grand in scope and contained a number of provisions which proved too highly controversial this session. Through a series of heated committee stops in both chambers the legislation has been greatly scaled back to essentially create a homeowners insurance policyholder claims Bill of Rights. All provisions restricting the use of AOBs have been stripped along the way. The measures also prohibit post-claim underwriting; provide grounds for disqualification of umpires in the appraisal process to resolve disputed claims; and increases the Department of Financial Services’ authority to approve, suspend and revoke licenses for mediators and neutral evaluators in the DFS property mediation and sinkhole neutral evaluation programs. Both bills have now been approved by their committees of reference and are primed for chamber floor action at the discretion of leadership.
Workers’ Compensation Enforcement Action Measure
HB 271 & SB 444: These bills are an outgrowth of a joint effort between the Division of Workers’ Compensation and business community to make fair minded changes to the manner in which workers’ comp stop-work orders are enforced and resolved. On April 1 HB 271 passed on the House floor and was sent to the Senate via messages on the following day (4/2/14). SB 444 is scheduled to be heard tomorrow (4/22/14) in the Senate Appropriations Committee; however, as the bills are essentially identical, the Senate could lay its version on the table and pass the House version.
Non-Cancellable/Post DUI Automobile Insurance
HB 401 & SB 490: This is key legislation which extends the underwriting period on required post DUI automobile insurance to a full 90 days. HB 401 has successfully maneuvered all of its committees of reference and is on second reading by the full House. SB 490 was unanimously approved by the full Senate on April 11.
Shielding For Firearm and Ammunition Owners
HB 255 & SB 424: These are identical measures which will make an Unfair Insurance Trade Practice discrimination against those purchasing or renewing personal lines property & casualty insurance policies merely because they own firearms or ammunition. On March 18 the Senate bill (SB 424) reached final passage on the Senate floor. The House version has also been approved by all referenced committees and is ready for floor action this week.
Insurance Agency Licensing Overhaul-DFS Agents Bill
HB 633 & SB 1210: These bills reflect a lot of hard work by agent trade associations and the Department of Financial Services to make logical and common-sense reforms concerning the way insurance agencies and their branch locations are licensed. The measures also contain numerous technical “clean-up” items in Chapter 626 requested by the Department’s Division of Agent & Agency Services. The bills have conjured little to no controversy throughout the committee process. HB 633 was passed by the full House on March 27 and was sent to the Senate via messages on April 1. SB 1210 has cleared all committee stops and has been placed on the Senate Special Order Calendar for Second Reading on Wednesday (4/23/14).
State-wide Speed Limit Increase Measure
HB 761 & SB 392: This legislation could, at the discretion of the State Department of Transportation, raise speed limits on Florida’s major roadways to 75 M.P.H. HB 761 was approved by the House Economic Affairs Committee, its last committee of reference, on April 11 and has been placed on the calendar to be read on the House floor. SB 392 is on second reading by the full Senate.
A Reminder about DFS Rulemaking Regarding Adjusters
As we reported in our April 7 edition of the newsletter, the Department of Financial Services’ (DFS) Division of Agent & Agency Services held a rule workshop on Tuesday, April 15, 2014, regarding amendments it is proposing to Rule Chapters 69B-220.051, Conduct of Public Adjusters and Public Adjuster Apprentices and 69B-220.201, Ethical Requirements for All Adjusters and Public Adjuster Apprentices. Members of your LMA team attended the workshop and we will be providing written comments to DFS by the deadline of 5:00 p.m. tomorrow (4/22/14). You may read DFS’s proposed rule amendments by clicking HERE. If you have any concerns about the proposed rules and would like us to include those concerns in our written comments, please get those to us by no later than noon tomorrow (4/22/14). We will share with you our written comments in the next newsletter.
We Want You to Rely On Us
Why DO we do what we do each and every week? Some might say….well, it’s a job….okay, yes it is, but we must confess that it isn’t just a job for us. We love what we do and more than anything else, we want you to ‘rely on us’ for all the news, Intel, service, and any and all things LMA that we can provide to you and your businesses. We really, really like knowing you need us and we don’t want to disappoint you. So we will keep on keeping on each and every day so you CAN rely on us. And we promise we will be there for you.
Always, Lisa
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