Governor Rick Scott on Tuesday signed into law a bill (SB 408) backed by the insurance industry which makes it harder for homeowners to collect on sinkhole and hurricane claims.
The bill allows insurers to raise costs for reinsurance up to 15 percent over and above proposed rate hikes they seek from the Office of Insurance Regulation. The plan also allows insurers to withhold total replacement cost payments in certain situations until the policyholder provides proof the repairs are being made or the items replaced.
New Port Richey Republican Mike Fasano who opposed the bill said it is little more than an industry wish list paid for by policyholders who have nowhere else to go, and urged Scott to veto it. Fasano says, the bill is an industry backed measure that will place an undue burden on policyholders who he believes will end up paying more for less and will force many homeowners into the state-backed Citizens Property Insurance Corp.
“As long as the insurance company crosses it “T’s” and dots its “I’s,” they are going to be able to raise their rates,” Fasano said. ” …The bill allows them to raise rates even if they are buying insurance from themselves. ”
Sen. Garrett Richter, R-Naples and sponsor of the Senate’s property insurance rewrite (SB 408), acknowledged the bill required lawmakers to make some hard choices to reduce risk for insurers.
Lawmakers on Wednesday sent the bill to Scott, who had 15 days to take action on it and groups with an interest in the fight made their opinions heard. Backing Fasano’s effort to get a veto is a Sean Shaw, a former OIR consumer advocate now employed by Merlin Group, a Tampa-based law firm that specializes in suing insurance companies.
The Florida Chamber of Commerce on Monday said passage of the measure was one of the organization’s top priorities for the 2011 session.
“Reforming insurance regulation will ensure that when a catastrophic storm strikes our state that the insurance market will be stable and secure,” David Hart, executive vice president for the Florida Chamber, said in a statement.
