In the eyes of consumers and insurance groups, the massiveproperty insurance bill that passed during the waning hours of the2010 legislative session is a study in compromise. While declaringthat he is "not overly enthusiastic about the bill," FloridaInsurance Consumer Advocate Sean Shaw did concede that thelegislation benefits both companies and consumers. Moststakeholders seem to agree, offering lukewarm and cautious praiseor condemnation. Even one of the bill's sponsors, Sen. GarrettRichter (R-Naples), said the legislation was only the beginning ofthe long process of solving the state's property insurancechallenges.
The bill does bring significant changes regarding propertyinsurance rates and cost drivers. It allows insurers to apply 10percent increases on premiums under certain conditions, andrestricts the amount of time homeowners can file a claim after astorm to three years (down from five). That lower deadline was hardfought on both sides — the industry, which sought the time limitsto stem the flow of new and reopened claims seen after the 2005storms, and the public adjusters, who viewed it as a majorrestriction on how they operate in Florida. The bill alsoreauthorizes a 2009 requirement that insurers get state permissionfor rate hikes, and requires insurers to file detailed financialinformation about affiliates they hire for some services,addressing the recent publicized concern of so-called "hiddenprofits." Insurers also may now withhold part of a claim payoutuntil policyholders can demonstrate the funds will actually be usedto make repairs.
Florida Insurance Commissioner Kevin McCarty declared soon afterthe bill passed that he generally supported the legislation. Thismay put him at odds with Gov. Charlie Crist, an unusual position.The two are normally in lockstep when it comes to insurancematters. Crist has not offered significant opinions yet on thebill, but has repeatedly declared that he will veto any legislationthat includes increases in premiums. The bill has not yet beenpresented to the governor.