Courtesy, CDC Public Health Library
There were a lot of firsts this reinsurance renewal season and one of them was a wholesale pandemic exclusion in reinsurance treaties. This provision necessitates property insurance companies having to file a forms revision with the Florida Office of Insurance Regulation (OIR) to exclude pandemic coverage from their policies. We are encouraging OIR to proactively suggest the pandemic exclusion language.
The pandemic exclusion language will need to be a part of various forms, including HO3 and HO6 homeowners insurance policies. In this growing age of policy language being “open to interpretation,” it makes less sense for more than 100 insurance companies to submit separate form filings with OIR, and more sense for OIR to instead issue a memorandum, bulletin or some other guidance.
As the CDC and FDA have done on the federal level in providing regulatory guidance on certain health products related to the coronavirus, we believe that OIR and other state regulators should likewise ease the way for compliance – and protect business and the Florida economy from further disruption – by providing a standard in form language by which insurers can reliably follow. Doing so, will help eliminate potential civil litigation by allowing insurers to rely upon the directives of regulators. We welcome your thoughts and comments!
Up next, a look at the ever-evolving Florida insurance market, some infamous plaintiff attorneys in hot water, Florida’s safety ranking, and encouraging news on real estate sales.
LMA Newsletter of 6-22-20
