Insurance Reform Legislation That Passed

Below are some highlights from the Property Insurance Reform Legislation that passed on Monday:
Expanding Consumer Choice & Savings

Deductible Options – eliminates caps on deductibles so a homowner can choose a deductive other than the standard 2%, 5% or 10% in current law. However, for deductibles over 10% on a home valued under $500,000, approval must be obtained by a mortgage lender or lien holder.

Windstorm Coverage - allows homeowners to exclude windstorm coverage from their policies with approval from mortgage holder.

Contents Coverage - allows policy holder to exclude contents coverage.
Insurance Company Accountability & Regulatory Reform

Cherry Picking – requires insurers that offer homeowners policies in other states and offer auto insurance in Florida to sell homeowners insurance in Florida.

Return Profits – prohibits excess profits by property insurers and requires return of excess profits to policyholders.

Oath of Truth - requires an oath of truth, with penalty for perjury, for rate filings. Violation is an unfair trade practice, subjecting the insurance company to disciplinary actions against its license.
Age of Home – prohibits property insurers from denying coverage based solely on the age of home.

For a more detailed summary, Click Here.

Commercial & Condo Association Insurance

Risk Pooling - allows risk pooling of “like” entities, such as hospitals, municipalities, condominium associations, and not-for-profit corporations.

Self-Insure - relaxes restrictions on multi- family dwellings, condominium associations, and other such entities that self-insure.

Commerical Policies - moves all commercial non-residential policies out of the PCJUA and place them in Citizens. Citizens will write commercial coverage statewide and will cover the first $1 million on commercial property. Citizens would be allowed to require commercial properties to meet specified mitigation construction features in order to be eligible for coverage.
Quick Links…
Review article on Condo Assoc. Insurance
Review article on Commercial Insurance