- Florida Governor Rick Scott Receives Two Bills Relating to Citizens Property Insurance
- May 20, 2015
- Law Firm: Colodny Fass P.A. - Fort Lauderdale Office
- Governor Rick Scott was presented with 20 bills by the Florida House of Representatives today, May 18, 2015, among which were two bills relating to Citizens Property Insurance Corporation ("Citizens").
He has until June 2, 2015 to act on the legislation, or it will become law.
Below is a summary of each:
HB 715 relating to Eligibility for Coverage by Citizens Property Insurance Corporation by State Representative Holly Raschein
Effective July 1, 2015 if enacted, HB 715 would prohibit Citizens from issuing coverage to a major structure as defined in s. 161.54(6)(a), F.S. that is located within the Coastal Construction Control Line or Coastal Barrier Resources System if the permit to build or increase the total square footage of the structure by more than 25 percent is applied for after July 1, 2015.
HB 1087 relating to Operations of Citizens Property Insurance Corporation by State Representative Michael Bileca
Effective July 1, 2015 if enacted, HB 1087 would make the following changes to Citizens:
- Allow the consumer representative to Citizens' Board of Governors to be afforded the same conflict of interest exemption as other Board members
- Require agents who write business for Citizens to hold an appointment with an admitted carrier that is currently writing or renewing policies in the State of Florida
- Allow Citizens to share underwriting and claims files data with entities that have obtained a permit to become an authorized insurer, reinsurer, broker or modeling company. Such data would not be used for direct solicitations and would be kept confidential.
- Require Citizens to make changes (by January 1, 2016) to its plan of operation as it relates to take-out agreements made with private insurers
- Require that, in their take-out offers to Citizens policyholders, private insurers must include a comparison of coverages and rates between the insurer's policy and Citizens policy
- Allow a Citizens policyholder who declines a take-out offer the option to be excluded from future take-out agreements for up to six months
- Allow a Citizens policyholder who accepts a take-out offer the ability to re-apply to Citizens and be treated as a renewal through Citizens' Clearinghouse if, within 36 months of leaving Citizens, his or her premium is increased above the rate allowed under the Citizens "glide path"