Following the December Special Session on homeowners insurance Orlando State Senator Linda Stewart, a Democrat, filed two bills – one establishing new requirements for insurers to conduct business in Florida and anther providing clarity to homeowners receiving payments from their insurer.
Senate Bill 1536, Disposition of Insurance Proceeds, would require a mortgagee or assignee holding insurance proceeds to notify the insured of each requirement needed for the proceeds to be released.
“This bill is all about transparency in communication. Those who hold the funds that need to be paid out to policy holders will be required to inform what steps they must take to receive insurance proceeds in a timely manner,” said Senator Stewart.
Senate Bill 1528, would require an insurer that transacts property insurance and is domiciled in the state of Florida to maintain a minimum of $20 million in surplus funds. The bill also creates a scheduled increase every five years in the minimum surplus requirements for insurers.
“One of the many issues that have played a part in our ever increasing homeowners insurance rates are Florida based insurers who are unable to remain solvent due partially to not having enough surplus on hand. With little diversity in the portfolios of some of these insurers, one bad storm can mean the difference between operating as usual and insolvency,” Senator Stewart added. “I want to make sure that when insurers decide to put too many eggs in one basket, they have a backup funding to keep their commitment to the policy holders.”