Florida's massive property bill SB 408 wastaken up on the Senate floor for a second reading today, garneringyet more amendments on its way to a third and final reading. Itsnext appearance will entail a debate and a final vote in the fullSenate.

Supporters of the bill, sponsored by Sen. Garrett Richter,R-Naples, say the legislation is designed to create a morecompetitive private insurance marketplace. Opponents label it a"wish list for insurance companies."

SB 408 addresses a number of "hot topic" issues, includingsinkholes, public adjusters, the Florida Hurricane CatastropheFund, replacement costs, and mitigation discounts.

The sinkhole issue, in particular, has generated much debate.The bill currently contains language that repeals the requirementthat private insurers include sinkhole coverage in their mandatoryofferings. (The bill does, however, require the state-run CitizensProperty Insurance Corp. to offer comprehensive sinkholecoverage.)

The insurance industry has complained that fraudulent sinkholesclaims have mushroomed over the past few years, and sought relieffrom the mandate. Sen. Mike Fasano, R-New Port Richey—perhaps thebill's most outspoken critic and a legislator from the state'ssinkhole epicenter of Pasco County—claims that without therequirement insurers will not offer the coverage. That, accordingto Fasano, will leave homeowners with limited and expensivepurchase options if banks and mortgage companies compel them to buythe coverage. An amendment by Fasano requiring all insurers to"make available, for an appropriate premium, coverage for sinkholelosses on any structure" failed during the second reading.

The wide-ranging bill also reduces the timeframe that carriersmust give notice of non-renewals to homeowners from six months to45 days; places restrictions on public adjuster advertising;establishes a three-year timeframe in which a policyholder can fileor reopen a claim or supplemental claim; and addresses mitigationcredits.

In the area of replacement costs, the bill allows insurers touse a replacement cost holdback on both the structure and contents,subject to certain restrictions. A similar provision was in the2010 SB 2044 property bill, which was vetoed by then-Gov. CharlieCrist.

This year's much-debated bill has attracted 94 amendments, 24 ofwhich were filed in the past two days. Amendments green-lighted attoday's reading include:

 Amendment136604: A technical amendment relating to the definition of"structural damage" as it relates to sinkholes.

Amendment 343842: Specifies that public adjusters must alsomake available to insurers the written estimates they are requiredto retain for five years.

Amendment 488760: Provides a licensure exemption for claimsadjusters servicing guarantee mortgages in regard to policiescovering the mortgaged properties.

Amendment 407132:Allows the Office of Insurance Regulation(OIR) to examine managing general agents that represent only oneinsurer. (The OIR has declared this amendment unncessary andcurrently does not support it.)

Amendment 762998: Simplifies the educational requirements for"professional engineers" to only a bachelor's degree or higher inengineering.

William Stander, assistant vice president and regional managerfor the Florida office of the Property Casualty InsurersAssociation of America, has been closely following the legislationand attended the second reading. Stander noted the bill's progresstoday and said, "SB 408 addresses the property insurance costdrivers, and at this time the bill's provisions, generallyspeaking, appear stronger than those in its House companion, HB803."

The time and date for the bill's third and final reading andvote has not been set, although it could come as soon asThursday.