Fla. Legislative Committees Preparing for 2005 Session
An overview of property and casualty issues, homeowners, commercial property, PIP, medical malpractice and workers’ compensation have been presented to Florida legislative committees by Gary Guzzo, Florida Insurance Council lobbyist. The presentation was part of legislative committees’ preliminary preparations for the 2005 meeting of the Florida Legislature.
Rising sinkhole losses have created a crisis for Citizens Property Insurance Corporation and private carriers, Guzzo reported. The Legislature must tackle sinkhole reforms, including alternative claims dispute resolution, a clear sinkhole definition and consideration of a state sinkhole insurance facility, he said.
Guzzo outlined major hurricane issues and noted that the Mierzwa decision (valued policy law) must be repealed by the Legislature. It will “be catastrophic if applied statewide,” he said. Citizens will be hit especially hard with its losses rising dramatically.
Other FIC positions outlined to the committee included auto insurance rating reform; primary enforcement of seat belts; class action reform, including a stronger burden to designate a class; no changes in the Chapter 440 workers’ compensation statutes and cautious treading around the First Responder legislation; and third party liability reform in commercial insurance.
On Friday, Guy Marvin, FIC president, will be among about a dozen insurance representatives appearing before the Joint Select Committee on Hurricane Insurance.
Marvin will provide information on positions developed by the FIC Property Committee so far on remaining hurricane deductible issues, revision of the Florida Hurricane Catastrophe Fund and legislation proposed by Citizens.
These positions, which are consistent with legislative recommendations from national trade associations, will be submitted in writing to the Senate Banking and Insurance Committee staff late today and will be available to FIC members.
The select committee meets again Jan. 19. FIC has arranged for testimony from Dr. Robert Hartwig, vice president and economist, Insurance Information Institute in New York. Hartwig will discuss the magnitude of insurer losses from the four hurricanes last year, how that has impacted the financial strength of the national property and casualty industry and the need for carriers to restore their Florida capital.
The House/Senate committee is looking at issues surfacing from the 2004 hurricane season which were not addressed during the December special session. Key areas include whether the single season hurricane deductible established last month should apply to large commercial/residential risks, the size of personal lines hurricane deductibles and a possible reduction in the Cat Fund retention, in all cases or for multiple storm seasons.
The panel also will review the dramatic growth in Citizens and legislation proposed by the program, including a surcharge to keep its rates from competing with private carriers willing to write the risk. Its recommendations are due Feb. 10.