Residual Market Insurers ̶ HB 643 by Rep. John Snyder (R-Stuart) and the identical SB 1184 by Senator Nick DiCeglie (R-St. Petersburg) are dead. They did not progress during the week of March 31. Most likely the bills did not move because the House intended to add a provision in HB 643 that would give Citizens Property Insurance Corporation customers the option to resolve their claims disputes at the Division of Administrative Hearings (DOAH) versus the current practice of Citizens using DOAH exclusively for all claims disputes needing alternative dispute resolution proceedings. Read More
On March 27, 2025, the House Insurance & Banking Subcommittee approved on a 17 to 1 vote a revised version of HB 643 and this bill has two more committee stops. The bill repeals a long-standing consumer protection required of insurance agents to “diligently” search the market for an admitted insurer to write a risk before placing that risk in the surplus lines market. Called “diligent effort,” the process isn’t perfect but is considered the only firewall available in keeping surplus lines companies “in their swim lane” as one expert put it. Currently, surplus lines companies aren’t supposed to offer a more generous policy than their admitted counterparts and the premium is to be higher than an admitted quote. Interestingly, HB 643 changes Citizens Property Insurance’s mandatory arbitration provision so that it now would be voluntary where the policyholder must elect to resolve their disputes via arbitration with an administrative law judge. SB 1184, scheduled for its second of three committee hearings on April 1, is the senate version of this bill and has an added provision repealing a requirement that surplus lines agents file quarterly reports and doesn’t contain the Citizens’ arbitration language. (Return to Bill Watch)
