Legislation (Senate Bill 1894) introduced in the Florida Senate to exempt surplus lines insurers from the provisions of Chapter 627 has been amended by the Committee on Banking and Insurance and re-referred to the Judiciary Committee. The amendments, proposed by Senator Jeremy Ring (D), would subject surplus lines insurers to a number of provisions of Chapter 627 (rate and form filing) that would not otherwise apply under the original version due to its broad exemption language. We previously wrote about the introduction of Senate Bill 1894, and the formerly identical House Bill 853, here. Surplus lines insurers would still be exempt from form filing requirements, but as a result of the amendment surplus lines insurers would be required to comply with provisions regarding:
- Form of premium payment and payments of claims (627.4035)
- Notice of cancellation (627.4133)
- Information disclosure statement (627.4137)
- Binders (627.420)
- Administration of claims not waiver of defense (627.426)
- Attorney's fees (627.428)
- Liability of insureds; coinsurance and deductibles (627.701(1) and (4))
- Insurer's duty to acknowledge communications regarding claims (627.70131(5))
- Amount of insurer's liability for loss; replacement insurance (627.702)
- Unearned premiums (627.7283)
The Judiciary Committee has placed the amended Senate Bill 1894 on its agenda for today, April 1, 2009. Meanwhile, House Bill 853 has remained unchanged since its introduction and is currently before the General Government Policy Council.
We will continue to follow this matter and provide further updates on InsureReinsure.com.