"Comprehensive and precedent setting legislation was approved this week by the Florida legislature to address property insurance problems." 

The bill provides insurance industry accountability, including higher reserves for “pup companies,” prohibition of “cherry picking,” an oath of truth in rate filings, temporary suspension of “use and file” and arbitration, and expedited payment of claims. Specific now:

• Prohibit excess profits by property insurers and require return of excess profits to policyholders.

• Require all Florida-only subsidiaries to have a surplus of at least $50 million in liquid assets to help ensure that policyholders can receive payment when they need it.

• Require an oath of truth, with penalty of perjury, for rate filings. Rate filings must be signed by the insurance company’s CEO or CFO and actuary.

• Suspend the “use and file” procedure for rate increases. Insurance companies will have to seek and obtain OIR approval before implementing a rate increase.

• Require insurance companies to evaluate the hurricane-security of a structure rather than the date of construction when determining risk. Age of the home may not be used as the sole reason for rejection of coverage.

• Require any insurance company that writes homeowners policies in other states and writes auto insurance in Florida to sell homeowners insurance in Florida.

• Insurance companies must pay or deny property claim within 90 days of notice of the claim.

The above is from this BocaNews.com article. Click here.