Sunday, April 24, 2011

Legislator for a Day Part II: How would you find fiscal balance in Florida's property insurance industry?

Tallahassee’s current property insurance proposals seek to shore up private and public insurance companies’ reserve funds. They claim to be doing this to achieve fiscal balance but do they get it right? If not, what would you do if you were Legislator for a Day?

1) Under a Senate proposal, mitigation discounts could be revoked if insurance companies can demonstrate that the aggregate amount of mitigation discounts they provide to policyholders results in a loss of revenue to the company.

How would your association handle an increase in premiums if its mitigation discounts were revoked during the term of your policy?

Would this affect your decision to move forward with “hurricane hardening” plans?

2) Non-renewal notice – Insurers would be allowed to change the non-renewal notice from 180 days to 90 days. Is 90 days long enough for your association to find a new insurance carrier?

3) Legislators have proposed to reinstate the “use and file” system, which allows insurance companies to start charging higher premiums before the State has approved them.

4) One proposal includes the repeal of the requirement to reduce the number of policies in Citizens’ high risk areas (coastal areas where Citizens provides wind-only coverage).

Would failing to eliminate this requirement reduce the number of private market carriers providing coverage in coastal areas? If private insurers are required to cover wind, would they choose not to offer coverage?

For more information on these and other legislative proposals this Session, please sign onto CAN’s website, www.canfl.com.

This work by Donna DiMaggio Berger, Esq. is licensed under a Creative Commons Attribution-NoDerivs 3.0 Generic License.

1 comment:

  1. Legislators need to push for fiscal balance on the insurance market.

    ReplyDelete