Today Is Crist’s Day of Decision on Florida Property Insurance Bill

The omnibus property insurance bill, SB2044, becomes law at the end of today, unless Florida Governor Charlie Crist vetoes it.

Crist could sign the bill or just let it become law without his signature.

But if he intends to stop it, he must veto it today, which happens to be the first day of the 2010 hurricane season.

Insurance leaders, a consumer advocate and the state insurance commissioner, Kevin McCarty, have urged Crist to sign it. Trial lawyers have urged a veto.

Crist told the Sun Sentinel editorial board yesterday he was leaning towards vetoing it but would speak with McCarty about it.

A spokesperson in Crist’s press office this morning said she did not know his intentions.

Jeff Grady, president and CEO, Florida Association of Insurance Agents, is not optimistic the bill will survive. “It does appear likely that he will veto the bill. If so, bad day for Florida,” he replied in an email to Insurance Journal.

The bill under consideration by Crist addresses a number of costs in the system. It reduces the time a homeowner has to file a claim after a hurricane from three to five years and more closely regulates public adjusters, some of whom are blamed for an explosion of reopened claims from Hurricane Wilma five years ago. It allows an insurance company to withhold a portion of payment on a replacement cost claim to make sure that the money is being used to actually repair the property. It raises surplus requirements for carriers. It also streamlines the process for insurers to get state approval for reinsurance costs in rates and tries to bring premium credits for mitigation efforts under control.