On June 24, 2009 Florida Governor Charlie Crist vetoed Florida HB 1171, a property insurance reform bill, sought by the insurance industry and business advocacy groups. HB 1171 would have permitted insurers with adequate reserves to offer policies at whatever rate the market would bear while rate regulated companies continued to sell policies in Florida.
Read More Florida Governor Charlie Crist Vetoes Property Insurance Reform Bill
Florida Developments
Chinese Drywall – Environmental Protection Agency Releases Preliminary Test Results
The United States Environmental Protection Agency (EPA) recently conducted comparative testing on drywall manufactured in China and the United States. As reported here, here, and here, Chinese drywall emits fumes that allegedly smell like rotten eggs, cause health problems and corrode metal in thousands of new homes built between 2002 and 2007. Complaints have been registered nationwide but are concentrated in the Southeast, particularly in Florida.
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Read More Chinese Drywall – Environmental Protection Agency Releases Preliminary Test Results
The Florida Office of Insurance Regulation Enters Cooperation Agreement with Germany’s Financial Regulator
By Troutman Pepper Locke on
This week, the head of the Florida Office of Insurance Regulation (“FLOIR”), Commissioner Kevin McCarty, announced the signing of a memorandum of understanding (“MoU”) with the German Bundesanstalt für Finanzdienstleistungsaufsicht (“BaFin”), Germany’s integrated financial regulator responsible for regulatory oversight of the insurance, banking and securities markets.
UPDATE: Surplus Lines Insurer Exemption Legislation Signed Into Law
By Troutman Pepper Locke on
Last week, Florida Governor Charlie Christ signed into law House Bill 853, previously discussed here, which exempts surplus lines insurers entirely from the provisions of Chapter 627, except where specifically stated otherwise. Chapter 627 contains Florida’s rate and form filing statutes. …
Read More UPDATE: Surplus Lines Insurer Exemption Legislation Signed Into Law
Florida Environmental Claims – Florida Chief Financial Officer Alex Sink calls for funding of Inland Protection Trust Fund
By Troutman Pepper Locke on
In early May 2009, Florida’s Chief Financial Officer, Alex Sink, asked the Florida Legislature to ensure that Florida’s Inland Protection Trust Fund (IPTF) is adequately funded. The IPTF finances environmental clean-up on sites contaminated by leaking petroleum storage tanks. Sink warned that failing to fund the IPTF could waste progress in remediating contamination that has been made.
Chinese Drywall Capitol Hill Update – Senate Subcommittee Will Conduct Hearings and House Orders Study of Available Property Insurance
By Troutman Pepper Locke on
The Senate Subcommittee on Consumer Protection, Product Safety and Insurance (the “Subcommittee”) will hold the first Congressional hearings on Chinese Drywall on May 21st at 10:30 a.m. The Subcommittee intends to investigate the alleged health and product safety issues associated with Chinese Drywall. …
Read More Chinese Drywall Capitol Hill Update – Senate Subcommittee Will Conduct Hearings and House Orders Study of Available Property Insurance
UPDATE: Surplus Lines Insurer Exemption Legislation Passed By Florida Senate and House
By Troutman Pepper Locke on
Last week, both the Florida Senate and House passed legislation, Senate Bill 1894 and House Bill 853 respectively (the “Legislation”), to exempt surplus lines insurers entirely from the provisions of Chapter 627, except where specifically stated otherwise, which contains Florida’s rate and form filing statutes. …
Read More UPDATE: Surplus Lines Insurer Exemption Legislation Passed By Florida Senate and House
Senate Bill Seeks Federal Backstop for Four States’ Catastrophe Funds
United States Senator Bill Nelson (D-FL) introduced a bill last week to provide a guarantee for the Florida Hurricane Catastrophe Fund from the Federal Reserve. The legislation would also provide federal guarantees for the catastrophe funds in Texas and Louisiana and the earthquake insurance pool in California (the “Cat Funds”).
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Read More Senate Bill Seeks Federal Backstop for Four States’ Catastrophe Funds
Florida Hurricane Catastrophe Fund Reforms May Impact Demand for Private Reinsurance Coverage
By Troutman Pepper Locke on
As reported here, here, and here, Florida legislators and insurance regulators actively are seeking to shed some of the state’s hurricane risk and to strengthen the financial condition of the Florida Hurricane Catastrophe Fund (the “Fund”). As reported here, the Fund, which was established after Hurricane Andrew, provides reinsurance coverage for residential property insurers in Florida in the event of major windstorm events.
UPDATE: Surplus Lines Insurer Exemption Legislation Makes Progress In Florida Senate And House
By Troutman Pepper Locke on
Florida Senate
On April 20, 2009, the Florida Senate Finance and Tax Committee (the “Senate Committee”) passed an amended Senate Bill 1894 (the “Senate Bill”) by a vote of 3-2.