This was an interesting Session as it relates to property insurance. As we all know, there were several bad bills making their way through the process. However, for various reasons, the only relevant bill that will be presented to the Gov. for signature is SB 408/HB 803. I have attached the FINAL version that will be presented to the Gov. Pursuant to Florida law, Governor Scott must sign or veto legislation within 15 days of transmittal, or it becomes law without signature. Accordingly, we must immediately encourage Governor Scott to veto SB408.
Here is his contact information:

PHONE - (850) 488-7146
(850) 487-0801 (fax)

Here is a summary of the bill:

• Increase the solvency requirement of residential property insurance companies by requiring them to have at least a $15 million surplus to pay claims.
• Require policyholders with sinkhole claims to use all insurance proceeds to repair the property.
• Require additional sinkhole testing information to be filed with the Clerk of Court, which will give potential homebuyers notice that a sinkhole was found on the property.
• Require the disclosure of sinkhole claim payments, the sinkhole report, and the certification that repairs are complete to be given to the purchaser of real property before closing.
• Require the professional engineer supervising sinkhole repairs to certify to the homeowner that they were done correctly.
• Changes law with regard to solicitations from public adjusters.
• Cap public adjuster fees.
• Reinstate “file and use” requirement that property insurance rates must be first approved by the Office of Insurance Regulation before the insurance company can implement the rate.
• Reduce notice of non‐renewal for Citizens take out policies to 45 days only if policyholder wants to leave Citizens and thus reduces the time the policyholder must wait from 100 to 45 days.
• Reduce notice of non‐renewal for private market insurers that are financially impaired to 45 days.
• allows insurers to pay only the depreciated value of a property at first, withholding the full amount until repairs are made. The holdback applies only to structural property. Homeowners will still be able to buy policies -- at added cost -- that require carriers to pay in full for personal belongings insured by the policy.
• Insurers have the ability to raise rates up to 15 percent higher than what regulators ordinarily approve, to cover the costs of reinsurance.
• Carriers would still be required to offer sinkhole coverage for the house alone, but they can drop protection in the main policy and require homeowners to buy a second policy adding it back.
• the time limit for hurricane victims to file insurance claims shrinks to three years; for those with sinkhole damage, it falls to two years.
• The bill limits what insurers, including state-run Citizens Property Insurance, will pay for sinkhole damage, to just the house and not attached structures, pool decks or sidewalks.
• It requires that Citizens policyholders first be assessed the maximum tax to pay hurricane claims, before the state then attempts to collect from other home, auto and commercial policyholders in the state.
• The bill includes a special provision written to help a single potential insurer -- allowing home and auto policies sold as a package to be canceled together, for any reason, with 90 days notice.
• Allow insurers to raise consumers’ rates without approval from regulators to cover advertising costs and agent commissions

Fortunately, the other bills that dealt with CPIC rates and changes to bad faith did not pass. Although Session is over, we must remain vigilant. We have to ensure that insurance remains on the radar of the media and elected officials. Any ideas on how to do either would be appreciated. We might attempt to replicate the Rally that Floridians in Action put together in SF. Also, everyone needs to keep in mind that the next Session will begin in January due to redistricting. Therefore, we must maintain the relationships we have with our current legislative friends and make sure we forge relationships with anyone who might be a future ally. Any thoughts on that would be appreciated as well. All the policyholder representatives on this group should be proud of the impact that we all had on this Session. We were able to kill some very bad bills and change others. Despite the fact that 408 is bad for consumers, this Session could have been much worse. I will be in touch!

Sean Shaw
Attorney
Merlin Law Group, P.A.
777 S. Harbour Island Blvd.
Suite 950
Tampa, FL 33602
Tel: (813) 229-1000
Fax: (813) 229-3692
Web: www.merlinlawgroup.com