May 5, 2008

(Bills in blue have won final passage and will go to the governor. We are still checking on bills in red. Most bills, of course, did not pass. This is a work in progress because we will be sifting through amendments and enrolled copies of passed bills for days looking for good and bad surprises.)

Agents/Agencies/Adjusters
•    Public adjuster/revised regulation. Passed in CS/CS/SB 2012. Revises various provisions in the Insurance Code involving public adjusters, the substance of CS/HB 1098. The plan is based on recommendations from the Task Force on Citizens Claims Handling & Resolution. It includes caps on certain fees; restrictions on solicitation; guidelines and practice parameters; licensure qualifications, examinations and continuing education requirements and a public adjuster apprenticeship program and license.
•    Customer Representative qualification expansion, limitations on CE requirements for Citizens-appointed agents, other provisions. Passed in CS/CS/SB 2012.
•     Licensing of umpires in the appraisal process (HB 563, CS/SB 1018). Did not pass.
•    Title insurance agent services charge (SB 2540). Did not pass.

Auto Insurance
•    Automobile Lenders Industry Task Force with FIC nominee; in big Department of Highway Safety & Motor Vehicles package for this year (CS/CS/CS/SB 1992/1st engrossed). One of the members would be an insurance representative nominated by the Florida Insurance Council. Completed Senate and House action, will go to the governor.
•    DHSMV highway safety package (SB 1992) Passed Senate on April 23. Substituted by House on April 24 for its bill. Completed Senate and House action, will go to the governor.
•    Liability insurance/railroad truckers (HB 1123) Senate completed legislative approval on April 29. Applies specified rules and regulations to contact carriers employed by railroad companies. Requires commercial for-hire carrier companies to maintain certain liability insurance.
•    PIP “glitch” bill. Passed in Insurance “train,” CS/CS/SB 201. Clarifies that the PIP statute reference to the Medicare Part B Fee Schedule is to the participating physician fee schedule for 2007.
•    Driving schools bill to mandate 5 to 10 percent discounts on auto insurance premiums. Did not pass.
•    PIP fraud/minimum, mandatory penalties (CS/HB 267, CS/CS/SB 2012, CS/SB 752). Did not pass. 
•    45-day notice if renewal requires limits, coverage or premium change. (HB 1493, CS/CS/SB 2338). Did not pass.
•    Prohibition on local government accident response fees. Dead issue.
•    Towing or storing vehicles (HB 455, SB 2410). Never heard by Senate committees. Dead issue.
•    Mandatory bodily injury liability. Increased mandatory bodily injury liability insurance under the Financial Responsibility Law (HB 729, SB 2258). Did not pass.
•    Possible recreation of Florida Motor Vehicle Theft Prevention Authority with insurer funding. Never came up.
•    Requiring insurers selling auto insurance to also offer homeowners insurance (SB 306, SB 400). Did not pass.
•    Prohibition on use of cell phones by a driver (HB 193, SB 504, SB 266). Did not pass.
•    Primary enforcement of seat belt law (HB 11, SB 94). Did not pass.
•    Redlight cameras: Did not pass.
•    Pilot program/auto insurance subsidy for foster children who become young drivers (SB 178). Did not pass.

Elections/Ballot Initiatives
•    Registration of paid petition gathers (CS/CS/HB 903, SB 2340). Did not pass.
•    Campaign financing (CS/HB 1155). Addresses political committees, committees of continuing existence, reporting and many other issues. Did not pass.

General Insurance
Insurance “train,” CS/CS/SB 2012. Includes bills on long-term care, public adjusters, insurance claims by heirs to Holocaust victims, continuing education requirements for agents appointed by Citizens Property Insurance Corporation, the so-called PIP “glitch” bill and other issues. Passed by the Senate shortly after noon, May 2. Will go to the governor.
•    Extends until July 1, 2018, the time period for Holocaust victims, survivors or heirs to file certain insurance claims.
•    Amends section 624.443, F.S., to allow OIR to waive the requirement that a MEWA maintains its principal place of business in Florida if the MEWA has been operating in another state for 25 years, has been licensed in that state for at least 10 years and has a minimum fund balance of $25 million at the time of licensure. Was also in CS/CS/SB 1012.
•    Amends 627.84073, which pertains to long-term care of limited benefit insurance policies, to require that the notice of possible lapse in coverage due to non-payment of premium be sent to the policyholder and to the secondary designee at the address shown in the policy or the last known address provided to the insurer.
•    Amends 627.736 to clarify that PIP reimbursement for medical services would be based on 200 percent of the Medicare Part B schedule for participating physicians for 2007. Was also in CS/CS/SB 2174.
•    Amends 395.106, risk pooling by certain hospitals, specifically, hospitals forming a self-insurance alliance for pooling and spreading of risk for property insurance coverage. The amendment would allow these alliances to be considered insurers for the sole purpose of reinsurance coverage so the reinsurance would not be subject to the premium tax. These contracts would receive the same tax treatment as reinsurance contracts issued to insurers.
•    Amends 627.351, Citizens Property Insurance Corporation, giving a policyholder and their attorney who have filed suit against Citizens the same discovery rights that would be available from a private insurer in litigation under the Florida Rules of Civil Procedure.
•    Amends 624.46226, self-insurance funds for public housing authorities. Provides criteria that authorities must follow in forming self-insurance funds, including having annual premiums in access of $5 million.
•    Revises various provisions in the Insurance Code involving public adjusters, the substance of CS/HB 1098. The plan is based on recommendations from the Task Force on Citizens Claims Handling & Resolution. It includes caps on certain fees; restrictions on solicitation; guidelines and practice parameters; licensure qualifications, examinations and continuing education requirements and a public adjuster apprenticeship program and license.
•    Expands the $10 million drop-down coverage from the Florida Hurricane Catastrophe Fund extended through the 2008 hurricane in the big property insurance package to include not only limited apportionment companies and Capital Build-Up Incentive Program companies, but any company who purchased this supplemental coverage last year.
•    Enacts the Florida Association of Insurance Agents package on continuing education requirements for agents appointed by Citizens Property, revisions to customer representative licensing. Substance of CS/CS/SB 2528.
•    Requires Citizens Property to electronically report claims data and histories to a consumer reporting agency upon the request of that agency.

Other General Insurance Bills
•    “Guns in the workplace” (CS/HB 503). Signed by Governor Crist. Florida Chamber, other business groups planning legal challenge. Legislative approval completed by Senate on April 9. Bill applies only to employees with concealed weapon permits and provides certain employer liability from lawsuits.
•    APA reforms (CS/CS/SB 704). House completed action on this bill on April 29. From Associated Industries: This bill provides additional incentives for state agencies to undergo rule adoption and implementation procedures when authority for such is granted by statute.  The bill is designed to prevent agencies from failing to go through the formal rule making process but implementing and enforcing policies under such statutes.
•    OIR fees for use of public hurricane loss model. Included in House Amendment for CS/CS/SB 2860 & 1196).
•    Increased fines from OIR on insurers (Fines doubled in House Amendment for CS/CS/SB 2860 & 1196).
•    Holocaust victim beneficiary insurance claims; extends until 2018 period within which certain insurers must permit claims from a Holocaust victim or from a beneficiary, descendent, or heir of such a victim. (CS/CS/SB 2012).
•    OIR fees for rate and form filings. Did not pass.
•    Prohibition on mandatory binding arbitration in insurance contracts (HB 1219, SB 2076). Did not pass.
•    Restricting auto and homeowners insurance underwriting based on credit scoring (SB 2862). Did not come up.
•    Periodic reaffirmation of OIR Commissioner McCarty’s appointment by Cabinet. (CS/SB 818). Did not pass.
•    Credit scoring public records exemption facing “sunset.” (SB 7042). Did not pass. Carriers should be able to utilize trade secret protection provisions in current law.
•    Restricting underwriting based on education & occupation (SB 2650, SB 2862). Did not pass.
•    “Free insurance,” cell phones provided under cell service contract. Did not come up.
•    Sell it in any state, sell it in Florida, any line of insurance (SB 400). Never heard in committee. Debated briefly on Senate floor by Sen. Mike Fasano, R-New Port Richey, who called insurers cutting back their exposure “disgusting.”
•    Governor Crist budget raid on Insurance Commissioner’s Regulatory Trust Fund. Did not pass.
•    Requiring testimony under oath before legislative committees (HB 95, SB 268). Did not pass.

Health Insurance
Uninsured Bills

Three-part Package Expanding Health Insurance (CS/CS/SB 2534, 2nd Eng.)

The House and Senate reached agreement on the final day of the session on a big package to provide health insurance to more Floridians through three initiatives: Governor Charlie Crist’s Cover Florida Program, House Healthcare Council Chairman Aaron Bean’s “market place” plan and an extended and expanded Florida HealthFlex Program.

HealthFlex is extended for five years until July 1, 2013, and the eligibility is changed to income at 300 percent of the federal poverty 

Under Bean’s plan HMOs, provider sponsored networks, chiropractors, dentists or even massage therapists would offer mandate-free health plans. They would be tailored to suit whatever a provider wanted to sell and an employee wanted to buy and would be paid for with pre-tax dollars. Only employees who work for firms would be entitled access to the marketplace.

Under Cover Florida the state would negotiate with insurers who would be required to offer any previously uninsured individual access to one of two health care plans, including a “catastrophic” plan that includes hospitalization.  The policies would be guarantee issue to citizens between the ages of 19 and 64 who have been uninsured although employers are authorized to participate in it, also with the use of pre-tax dollars.

Other Crist Initiatives:
•    Florida Health Flex extension and expansion. (CS/CS/SB 2534, 2nd Eng., HB 461).
•    Crist wanted $60 million to fully fund Florida Kidcare, but won approval of $134 million.
•    Certificate of Need for new hospital beds. (SB 2326) House completed legislative approval on May 2. Changes how CONs are administered and challenged, but keeps intact the requirement that CONs are necessary for a new hospital.
•    Eliminating the restriction in the KidCare program that no more than 10 percent of the enrollment live in families with incomes over 200 percent of the federal poverty level. Passed in SB 2534).
•    Expansion of dental care at county health department by relaxing regulation in certain areas. Passed in SB 2760.
•    $63.9 million for 14 counties with highest amount of uncompensated care. Did not pass.

Other plans to promote health insurance
•    Pilot to provide rebates to small businesses providing health insurance (HB 71, SB 190); Miami/Dade County discount card (HB 1437, SB 2316). Did not pass.
•    Expanded dependent health insurance coverage. Did not pass.
•    Restructuring Florida Kidcare, making qualification by youngsters easier. Did not pass.  (HB 1275, SB 264, 888, 1090 & 2032.)
•    Expanded eligibility for participation in the state group health insurance and the prescription drug coverage programs (SB 410). Did not pass.
•    Maximum charge for uninsured at contracted/allowable rate (HB 1513, SB 1756). Did not pass.
•    Coverage of all low-income children/allowable FHK “crowd-out” and coverage of State employee dependents. (HB 1275, SB 2472).  Believe this failed.

Transparency
•    Florida HealthCheck package (CS/SB 1488, HB 1435): hospitals would have to submit written estimates in advance of treatment, publish undiscounted price lists for commonly performed procedures and medications. House completed legislative approval on April 29.
•    Florida eHealth Initiative Act. (CS/HB 637, CS/SB 1998). Did not pass. Requires the AHCA, subject to a specific appropriation, to award and monitor matching grants to health information organizations that submit proposals that advance the development of a statewide health information exchange. 

Other Health Issues
•    Uniform health insurance identification card (HB 535, CS/SB 1968). (HB 535, CS/SB 1968). Senate bill cleared committees and on the calendar. Approved by Senate on April 24 and set now to go to governor.  Approved by the House on April 18. Approved by the House on April 18.
•    Direct assignment of benefits for life support and ambulance services in emergencies. Included in finally approved FMA claims payment bill (CS/SB 1012)
•    PIP anti-fraud (CS/HB 267, CS/SB 752). Did not pass.

Mandates
•    Bone marrow transplants/ non-ablative/life-prolonging. (HB 535). Approved by Senate on April 24 and set now to go to governor.  Approved by the House on April 18.
•    Mandated coverage for autism (CS/SB 2654). Last-minute agreement reached. Was last bill to pass. Requires insurance companies to sign a compact with the Office of Insurance Regulation to cover autism. Apparently puts in motion eventual mandate for autism and other developmental disabilities if autism coverage isn’t provided by carriers through the compact.
•    Amino acid formulas (SB 1598). Did not pass.
•    Anti-Epileptic Drugs/Prohibiting Generic Substitute (HB 811, SB 2414). Did not pass.
•    Breast cancer treatment/prescribes length of hospital stay for lymph node dissections (HB 363, SB 448). Did not pass.
•    Clinical cancer trials/insurers would provide normal coverage even if the condition resulted from a clinical cancer trial. There was an amendment under consideration May 2. Apparently, this did not pass.
•    Congenital craniofacial anomalies study (HB 465, SB 460). Did not pass.
•    Colorectal cancer screening (SB 2730). Did not pass.
•    Cystic fibrosis (SB 364). Withdrawn from further consideration.
•    Fetal alcohol syndrome study (HB 25). Did not pass.
•    Human papillomavirus virus (HPV)/mandatory education of middle-schoolers. Did not pass.
•    Infant Eye Care Screening (SB 174). No Senate committee action and no House bill. Did not pass.
•    Kidney failure/Medigap insurers would have to offer coverage to Floridians under age 65 suffering “end stage” kidney failure. Was in SB 1598. Did not pass.
•    Prostate cancer screening coverage (HB 53, CS/SB 1010). Did not pass.
•    Mental health/substance abuse disorders (HB 19, CS/SB 164). Did not pass.
•    Pneumonia vaccine for children younger than two. Considered dead.
•    Psychotropic drugs perpetual coverage. Did not pass.
•    PT authorization limits removal (HB 1019, SB 1278). Did not pass.
•    Speech therapy/unlimited physical, occupational and respiratory speech therapy (SB 2446). Did not pass.

Health Insurance/Managed Care
•    Florida Medical Association claims payment package (CS/SB 1012). Passed by the Senate on April 24. FMA, health insurers and business groups reached a compromise on the “silent PPO” issue, the last remaining issue in dispute. House bill on Special Order Calendar for April 25. Bill limits to 12 months look-back for claims overpayment by insurers and underpayment by provider, in most cases.  Specific to silent PPOs, the bill defines contracting entity as “any person or entity that is engaged in the act of contracting with participating providers and has a direct contract with a participating provider for the delivery of health care services or the selling or assigning of physicians or physician panels to other health care entities.” The amended bill also allows for direct assignment of benefits for HMOs subscribers to any contracted ambulance provider.
•    Medicaid managed care plans (HB 859, SB 1566, SB 1508). Did not pass.

Medicare Supplement Insurance
Kidney failure/Medigap insurers would have to offer coverage to Floridians under age 65 suffering “end stage” kidney failure (Adopted as amendment to SB 1598). Did not pass.

Legal Reform
•    Expanded cause of action against insurers through the general Unfair Fair trade Practices Act Restricted version passed in the House-Senate Property Package (House Amendment for CS/CS/SB 2860 and 1196).
•    Attorney Contingency Fee Contracts With State (CS/HB 1341, SB 2430). Did not pass. Prohibits DLA from entering into contingency fee contract with private attorney unless AGO makes written determination prior to entering into such contract that contingency fee representation is both cost-effective & in public interest.
•    Prohibition on mandatory binding arbitration in insurance contracts (HB 1219, SB 2076). Did not pass.
•    Cause of action for victims of sexual abuse (CS/HB 133, SB 1194). Did not pass.
•    Lawsuits through the nursing home licensure law (HB 1335, CS/SB 1688). Did not pass. According to Associated Industries of Florida, the bill would have allowed “trial lawyers to subvert the nursing home licensure laws by creating a roadmap that allows them to pierce corporate veils and sue related organizations for nursing home claims.  This bill would serve as a bad precedent for using Florida’s licensure laws.”
•    Repealing the Fabre Decision on Comparative Fault & Joint & Several Liability. Did not come up.
•    Offer of judgment/frivolous lawsuits: clarifies that a single offer can be made to a corporation and the individual defendant or defendants in a medical malpractice lawsuit; defines frivolous lawsuit. Did not pass.
•    Late night business security (HB 325, HB 327) Did not pass.
•    Limits actions against insurers to insureds (HB 589, SB 882) Did not pass.
•    Expert witnesses (HB 645, SB 1448) Did not pass.

Life Insurance
•    Insurable interest revised definition (CS/HB 375, CS/SB 648). House approved Senate bill 112-0 on April 19, completing legislative approval. 
•    General suitability statute for annuities sales to seniors (CS/CS/SB 2082). House and Senate reached agreement and passed this bill on the final day. Acceptable general suitability standards; first degree misdemeanor penalties for twisting and churning; allows group corporate owned life insurance policies (COLI).

Long-Term Care Insurance
•    Long-term care insurance revisions (CS/CS/SB 2012). Requires notice to right of secondary addressee for long-term care insurance policyholders; provides that lapsed policy can be reinstated if non-payment of premium occurred during hospital stay of at least 60 days.

Medical Malpractice/Commercial
•    Restrictions on arbitration/ for all lines of insurance, but key issue in medmal (HB 1219, SB 2076). Did not pass.
•    Revised Medmal requirements (HB 1443, SB 2694). Did not pass.
•    Offenses against unborn children, amending standard for cause for pain & suffering lawsuit involving fetus (HB 513, SB 2480). Did not pass.

Property Insurance
House/Senate Compromise on Expanded Regulation of Insurance; Continued Citizens Rate Freeze, Other Provisions (House Amendment for CS/CS/SB 2860 & 1196). Passed 117-0 by the House after midnight May 1. Senate concurrence came Thursday afternoon. Asterisk* in this report below means applies to all lines of insurance.

Insurance Capital Build-Up Incentive Program (Also passed in HB 5057 and see provision in CA/CS/SB 2012)
•    Extends the program for another year (requires insurers to apply for the loan by 10/1/08).
•    Specifies minimum premium-to-surplus ratios (phased in to at least 2-to-1 net or 6-to-1 gross).
•    The insurer must commit that at least 15% of its premium for new policies is attributable to policies taken out of Citizens.
•    The insurer must commit to maintaining a level of surplus or reinsurance sufficient to cover at least its 100-year probable maximum loss.

Funding for Insurance Capital Build-Up Incentive Program Requires Citizens to transfer $250 million to the General Revenue Fund by 12/15/2008, provided the combined surplus of each Citizens account exceeds $1 billion. Repayments of surplus notes funded by Citizens, including interest, will be transferred to Citizens.
•    Citizens may not use the funding of the Insurance Capital Build-Up Incentive Program as a justification for rate increases or assessment increases.

Market conduct examinations*
Allows OIR to require an insurer to file its claims-handling practices and procedures, based on the findings of a market conduct exam that an insurer has exhibited a pattern or practice of willful unfair insurance trade practices violations as prohibited by 626.9541(1)(i) (unfair claims settlement practices). Final bill does provide that an insurer can be required to file its claims handling practices only pursuant to an order under chapter 120.

Administrative fines*
Doubles the amounts of existing fines and doubles the existing caps on fines.

Trade secret documents*
•    If a person who is required to submit documents or information to OIR claims trade secret protection, the person must file a notice of trade secret or the trade secret protection is waived. Each page or specific portion of the document or information must be marked “trade secret,” and all trade secret information must be separated from non-trade-secret information.
•    The submission must be accompanied by an affidavit under oath, stating, among other things, that the owner of the information has taken steps to protect the trade secret, that the information is not reasonably available without the owner’s consent by legitimate means, and that the information is not publicly available elsewhere.
•    Provides a process for an insurer to defend the trade secret status of its documents. OIR will notify the insurer of a public records request, and the insurer has 30 days to file an action in circuit court seeking a determination of the trade secret status of the documents.
•    OIR may share claimed trade secret documents with other governmental agencies.

Residential nonrenewals
An insurer planning to nonrenew more than 10,000 residential policies within a 12-month period must provide 90 days’ advance notice to OIR for informational purposes, including its reasons for the nonrenewals, effective dates, and arrangements to offer other coverage to affected policyholders.

Unfair insurance trade practices; fines*
Doubles the amounts of existing fines and doubles the existing caps on fines.

Unfair insurance trade practices; new violations
Prohibits an insurer from failing to pay undisputed amounts of full or partial benefits under first-party property insurance policies within 90 days after the insurer receives notice of a residential claim, determines the amount of benefits, and agrees to coverage, subject to specified exceptions. Exceptions: payment of undisputed benefits is prevented by an act of God, prevented by the impossibility of performance, or due to actions by the insured or claimant that constitute fraud, lack of cooperation, or misrepresentation regarding the claim.

Administrative proceedings in rate determinations
•    Provides that in an administrative proceeding on property insurance rates, findings on the following matters are considered findings of fact:
•    Whether factors used by the insurer or OIR are consistent with actuarial standards or otherwise based on reasonable actuarial judgment.
•    Whether the profit and contingency factor is reasonable or excessive.
•    Whether the cost of reinsurance is reasonable or excessive.
•    In an administrative proceeding on property insurance rates, a recommended order may approve, modify, or reject the requested rate change.

Ratemaking
•    Extends for another year the prohibition on use-and-file rates for property insurance.
•    Permanently repeals rate arbitration.
•    Provides that OIR may not disapprove a rate as excessive solely because the insurer obtained catastrophic reinsurance to cover its 250-year probable maximum loss or a lower level of loss.
•    Projected hurricane losses must be estimated using a commission-approved model.
•    Repeals the provision allowing a reasonable rate of return commensurate with risk for companies that expose their surplus to catastrophic losses in lieu of reinsurance.
•    Provides for expedited DOAH review of OIR rate filing actions and expedited appellate review of DOAH rate filing action.

Hurricane Loss Projection Methodology Commission
•    Provides legislative findings that the commission’s activities are not final agency action and are not subject to chapter 120.
•    Requires the commission to adopt findings with respect to the accuracy or reliability of models for the purpose of projecting probable maximum losses.
•    Requires insurers to use, without modification or adjustment, commission-approved models in determining PMLs; this requirement applies only with respect to a rate filing made more than 60 days after  the commission adopts findings with respect to the accuracy or reliability of models related to the calculation of PMLs .
•    Removes provision relating to the admissibility and relevance of modeled findings and factors and requirement for OIR and Consumer Advocate access to a model’s assumptions and factors.

Public hurricane loss projection model
Provides that a residential property insurer may have access to the public model, including assumptions, factors, and detailed loss results, for the purpose of calculating indications and for analytical purposes. Requires OIR to establish a fee schedule for the use of the model, calculated to cover only the actual cost of providing access to and use of the model.

Uniform Home Grading System
Requires OIR to develop a methodology by 2/1/2011 for mitigation discounts and credits correlated to the numerical mitigation score on the uniform home grading scale. Requires rulemaking by 10/1/2011 to require insurers to apply the uniform methodology.

Notices of cancellation or nonrenewal
Requires 180 days’ advance notice of nonrenewal, cancellation, or termination of a personal lines or commercial residential policy (except for nonpayment or for cancellations during the first 90 days after initial issuance). The new 180-day notice requirement applies only to a named insured whose structure has been insured by the insurer or an affiliate for at least 5 years.

Policyholder discounts
Allows an insurer to provide multiple-policy discounts where the policyholder has a Citizens policy or a take-out policy, provided the same agent services the insurer’s policy and the Citizens or take-out policy.

Report on the economic impact of a 100-year hurricane
Requires the CFO to provide an annual report on the fiscal and economic impacts of a 1-in-100-year hurricane.

Transparency in rate regulation
•    Requires OIR to establish a website showing rate requests, assumptions used by OIR actuaries, an explanation of deviations from actuarial standards of practice, recommendations of the OIR actuary, the OIR actuary’s certification under oath, and the approved rate change.
•    Limits OIR’s use of attorney-client privilege and work product privilege to communications or records prepared exclusively for litigation, and only after the initiation of an action in court, after issuance of an NOI, or after the filing of a request for an administrative proceeding.
•    These provisions apply only to residential property insurance rate filings

Florida Hurricane Catastrophe Fund
•    $10 million drop-down Cat Fund coverage for limited apportionment companies and capital build-up program companies. Passed on the House/Senate Agreement (House Amendment for CS/CS/SB 2860 & 1196).
•    Cat Fund, reduction in TICL from $12 billion to $9 billion (HB 7021, CS/CS/CS/SB 2156). Did not pass.
•    Creation of Florida Windstorm Insurance Program within the Cat Fund (HB 983, SB 2784). Approved by House Jobs & Entrepreneurship Council and House Insurance Committee. Did not pass.
•    Allowing Cat Fund TICL to continue in some iteration beyond the 2009 hurricane season (HB 1497). Did not come up.
•    Pledging the full faith and credit of the State of Florida behind Cat Fund bonds. No legislation came up. Raised as a possibility by Senate Democratic Leader Steve Geller, D-Hallandale before the Senate Banking & Insurance Committee, but never formally considered.

Citizens Property Insurance Corporation
House/Senate Agreement (House Amendment for CS/CS/SB 2860 & 1196).
•    Removes distinctions between homestead and non-homestead property.
•    Provides that, effective 1/1/2009, a personal lines residential property valued at $2 million or more (instead of $1 million or more) is ineligible for Citizens coverage.
•    Provides that, effective 1/1/2011, eligibility restrictions on non-mitigated properties in the wind-borne debris region apply to properties valued at $500,000 or more. (Current law applies this restriction, effective 1/1/2009, to properties valued at $750,000 or more.)
•    Lowers the maximum percentage for regular assessments (and the trigger for emergency assessments) to 6% of statewide premium for subject lines of business (instead of 10%).
•    Removes the immediate Citizens policyholder surcharge, but allows for surcharges upon renewal or issuance of policies, and increases the maximum policyholder surcharge upon renewal or issuance of a policy to 15%.
•    Requires Citizens to make a new recommended actuarially sound rate filing beginning 7/15/2009 and annually thereafter. The 2009 rate filing may not take effect prior to 1/1/2010.
•    Repeals forced-purchase of Citizens bonds.
•    Amends provisions relating to confidentiality of Citizens’ files to allow Citizens to release underwriting files to other governmental agencies, to provide that a policyholder has a right to discovery of the contents of his or her claims file, and to provide that, pursuant to subpoena, a third party has the right to discovery of underwriting and claims files.

Citizens Property Insurance Corporation Mission Review Task Force (Passed in House Amendment for CS/CS/SB 2860 & 1196). Creates the Citizens Property Insurance Corp. Mission Review Task Force to review and report on changes needed to restore Citizens to its former role as a noncompetitive insurer of last resort. The task force will consist of 2 insurer reps appointed by the House Speaker, 2 insurer reps appointed by the Senate President, 3 consumer reps appointed by the Governor, 2 agent reps appointed by the CFO, the Insurance Commissioner, and a Citizens rep appointed by the chair of Citizens.

Repealing pending prohibition against Citizens coverage of homes within 2,500 feet of the coastline not build to Florida Building Code-plus” standards. Passed in House/Senate Agreement (House Amendment for CS/CS/SB 2860 & 1196).

Citizens issues in insurance “train,” CS/CS/SB 2012. Amends 627.351, Citizens Property Insurance Corporation, giving a policyholder  and their attorney who have filed suit against Citizens the same discovery rights that would  be available from a private insurer in litigation under the Florida Rules of Civil Procedure.
Requires Citizens Property to electronically report claims data and histories to a consumer reporting agency upon the request of that agency.

Prohibition on wind-only policies in Citizen’s High Risk Account – did not pass current law is maintained with Citizens issuing and renewing wind-only policies.

Other Property Insurance Bills
Insurance Capital Build-up Incentive Program. House/Senate Agreement (House Amendment for CS/CS/SB 2860 & 1196 and CS/CS/SB 2012).

Condominiums
•    Regulatory Council of Community Association Managers (HB 995) Signed by Governor Crist.
•    Condo association insurance (CS/CS/HB 601 E1). Senate completed legislative approval on May 2. Will go to the governor. Addresses hazard insurance, swimming pools and other issues.
•    Condo SIFs for deductibles (HB 679). Senate completed legislative approval on May 2. According to FAIA, includes a provision allowing three or more condominiums with high deductible hurricane insurance policies to create a self-insurance fund to collect capital to cover their deductibles.

Other Property Issues
•    Florida Building Code annual revisions (CS/HB 697), including adoption of pending revised ASCE wind map for Florida into the code.
•    Memorial urging Congress to enact National catastrophe fund (SM 2452). Passed Senate on April 24. Doesn’t need to go to House or governor. Non-binding, but will be send to Congress.
•    Memorial urging Congress to exempt insurance reserves from taxation (SM 2488). Passed Senate on April 24. Doesn’t need to go to House or governor. Non-binding, but will be send to Congress.
•    Public adjuster/revised regulation (SB 2012, 1stEng).
•    Repeal of insurer report card system in HB 1A, from the January, 2007, special session. Insurance Consumer Advocate offering this as an amendment. Did not pass.
•    Requiring insurers to acknowledge Pasco County Building Code in property insurance rates (HB 701, SB 1524). Did not pass.
•    Licensing of umpires in the appraisal process (HB 563, CS/SB 1018). Did not pass.
•    Non-assessable commercial property & casualty insurance policy (CS/HB 1001, CS/SB 1422). Did not pass.
•    Allows multi-policy discount when auto policy and homeowners policy placed with Citizens or a takeout company are serviced by the same agent. (CS/HB 1003). Did not pass.
•    Restoring replacement coverage holdback or limiting OIR’s interpretation of the holdback prohibition. Did not come up.
•    Expansion of assessment base and indexing of insurance surcharges for emergency management. Did not come up.
•    Sales tax “holiday” for hurricane preparedness purchases. Legislative budget leaders announced April 17 the holiday could not be funded this year because of a strained and tight state budget.
•    Homeowners insurance premium assistance program (HB 1513, SB 1358). Never heard in committee. Dead issue.

Mitigation
House/Senate Big Senate package (Passed on House Amendment for CS/CS/SB 2860 & 1196).

Uniform Home Grading System
Requires OIR to develop a methodology by 2/1/2011 for mitigation discounts and credits correlated to the numerical mitigation score on the uniform home grading scale.
•    Requires rulemaking by 10/1/2011 to require insurers to apply the uniform methodology.

Sale of residential property, disclosure of windstorm mitigation rating
Effective 1/1/2011, requires the seller of residential property to disclose the property’s windstorm mitigation rating to the buyer.

Code-plus construction within 2,500 feet of coastline
Removes requirements for code-plus mitigation standards before Citizens could cover new construction within 2,500 fees of the coastal construction control line.

Other Mitigation issues:
•    House Mitigation Package (HB 7103, Passed House 117-0 on April 29. Completed action, will go to the Governor. My Safe Florida Home Program/Wind Certification. Requires that wind certification entities meet certain minimum criteria to qualify for selection by the Department of Financial Services. Deletes a provision requiring hurricane mitigation inspectors participating in the program to meet the requirements for a criminal record check by a specified date. Deletes a provision authorizing the department to transfer certain funds to Volunteer Florida Foundation, Inc., for certain purposes.
•    My Safe Florida Home Program no interest loans. Passed in HB 7103, beginning on line 150.
•    Re-roofing mitigation requirements from 2007 mitigation package. Passed in HB 697. Push by roofers to repeal or delay the requirements.
•    Guaranteed renewability for mitigated properties: Requires an insurer to guarantee 3 years of renewability for a property that meets the wind-borne debris standards of the 3-year period after the policy is issued or after the dwelling has been built or retrofitted to meet these mitigation requirements. Did not pass.

Surplus Lines
•    Clarifies interest on late payment of surplus lines assessments to Citizens and Cat Fund. (HB 5043). House completed final passage on May 2.

Taxes
General Taxes
•    Corporate income tax “piggyback” bill (operative number is HB 5065). This is “must pass” legislation each year to conform the Florida corporate income tax to changes in federal tax law.
•    Tax reform commission deliberations, including sales tax on services. Commission has approved a tax “swap plan,” reduction in local property taxes in return for a penny increase in the state sales tax, plus elimination of still-to-be-determined sales tax exemptions. Many business groups contend this is a behind-the-scenes services tax, because the money required could be generated only through elimination of these exemptions.
•    Value adjustment boards (HB 909). Passed on final day. From Florida TaxWatch: An already good bill to implement needed reforms to the Value Adjustment Boards (VABs) was amended late in the process to loosen the “highest and best use” requirement for property tax assessments. Additionally, the bill: (1) requires that property appraisers consider “any zoning changes, concurrency requirements, and permits necessary to achieve the highest and best use;” (2) requires uniform policies and procedures for boards, special magistrates, and taxpayers in board proceedings; (3) requires two citizens to be VAB members; (4) precludes county attorneys from serving as counsel to the board; and (5) requires all counties to appoint special magistrates, regardless of the county’s population.
•    “Glitch” bill to Property Tax relief constitutional amendment adopted by the voters in January (CS/SB 1588). Did not pass. From Associated Industries of Florida: “As it relates to business owners, the bill relieves uncertainty about whether taxpayers are eligible for the benefits included in Amendment 1. This is especially important because, under a little-known provision in the amendment, business owners must apply for the 10% assessment cap.”
•    Just valuation See SB 909, which passed, on value adjustment boards. This particular bill did not pass.
•    Property tax assessment challenges (CS/HB 1283, SB 678). Did not pass.
•    “Taxpayers’ Bill of Rights” (CS/HJR 7005, SJR 2334). Proposed constitutional amendment on challenges to property appraiser assessments. Did not pass.
•    Unitary tax restoration (HB 1237, SB 2766). Did not come up in Legislature.
•    Sales tax “holiday” June 1-7, 2008, for hurricane preparedness purchases (CS/HB 111, SB 86). Was not funded by Legislature.
•    Department of Revenue package, general tax administration (CS/SB 2788) Did not pass.
•    Firefighter & Municipal Police Pensions/Insurance Premium Taxes (HB 27, HB 171, SB 218, SB 330, SB 976). Did not pass.

Title Insurance
•    Title Insurance Study Advisory Council (CS/HB 937) Senate on April 28 completed legislative action. This will go to the governor at some point.
•    Redefining title insurance to include personal property insurance (SB 1078). Did not pass.
•    Title insurance agent services charge (SB 2540). Did not pass.

Workers’ Compensation
•    Group self-insurance funds/financial regulation revisions (CS/CS/SB 2462). House completed legislative approval April 29. Passed the Senate on April 24.
•    Transferring workers' compensation medical services & supplies responsibilities from AHCA to DFS (HB 5045). Senate completed legislative approval on May 2.
•    DWC package, including classification of certain personnel reviewing medical bills (HB 5045). Passed on final day.
•    Florida Public Task Force on Workplace Safety within the Safety Florida Consultation Program at the University of South Florida (CS/HB 967). Passed on final day.
•    Governor’s proposal to raid WCATF of $129 million. Did not pass.
•    1st DCA proposal for recurring funding from WCATF for certain staffing. Still checking.
•    Repealing most of landmark Chapter 440 changes - requiring insurance carrier to give employee more than one opportunity to change physicians for medical treatment (SB 2548, also HB 239, SB 454). Did not pass.
•    Workers’ comp excess profits law/expanding the look-back from three years to 10. Never came up.
•    PEO legislation (HB 239, SB 454). Approved by House Insurance Committee. Did not pass. Will be discussion item this summer between PEOs and FIC Workers’ Compensation Committee.
•    Monitor Florida Supreme Court deliberations on hourly legal fees from 2003 reforms.