Well, we made it through the 2011 legislative session, albeit a bit more battered and bruised than we had anticipated. With the election of Rick Scott and the dominance of the Republican Party in the Florida Legislature, the insurance industry and other businesses expected (and certainly were led to believe) that the session would focus on revving up the economy, creating jobs, and removing obstacles to corporate growth. Instead, a considerable amount of time and energy was devoted to passing ultraconservative and sometimes frivolous social regulations.

Consider: While the unemployment rate in Florida remained in double digits and the drop in property values ranked among the worst in the country, legislators found time in their brief 60-day session to pass a Saggy Pants law (HB 61/SB 228), which requires school boards to prohibit students from wearing clothes that show their underwear or body parts. I will admit I find the fashion statement ridiculous, but then I look at my pictures from the 60s … .

Moving on.

When lawmakers finally concentrated on issues of true import, Sen. Garrett Richter, R-Naples, remained a stalwart advocate for meaningful efforts to stabilize the property insurance market, and a coalition of consumer and industry groups battled hard for PIP reform. However, the outcomes of those two priorities were less than we had hoped.

PIP reform was driven into the ditch by personal injury attorneys and clinics and died a slow death, although we can expect advocates to rev it up again in 2012. Richter's property insurance bill SB 408 passed in the waning days of session after being watered down by opponents, notably Sen. Mike Fasano, R-New Port Richey. Upon approval by both chambers, the bill was quickly forwarded to and signed by Scott. While not as far-reaching as we had hoped, SB 408 does contain some reforms that may help stabilize our property insurance market and encourage carriers to again regard Florida as a desirable place to do business. Notably, it makes positive changes regarding sinkhole coverage, public adjusters, and reinsurance. Adopting Defense Secretary Donald H. Rumsfeld's famous bon mot, "You go to war with the army you have, not the army you might want or wish to have at a later date," most industry people declared themselves satisfied that we did as well as we could—this time.

(Read our cover story by David Miller and Lisa Miller, and a legislative wrap-up on page 12 by Thomas J. Maida and Paul Lowell for more details on Florida's property market and the 2011 session.)

Clearly, the battle to recast Citizens Property Insurance Corp. (addressed in the failed bills HB 1243/SB 1714) will wage on. Only when Citizens becomes a fiscally prudent entity that truly functions as the insurer of last resort will Florida's property insurance market realize stability, a level playing field, and growth.

So now we are in June—the beginning of hurricane season. We have enjoyed a reprieve since the deluge of eight hurricanes in 2004-2005. However, the National Oceanic and Atmospheric Administration says it expects 12-18 named storms for the Atlantic hurricane season of 2011-2012. Of those, 6-10 are expected to become hurricanes with winds in excess of 74 mph, and 3-6 are predicted to become major hurricanes, category 3, 4, or 5 with sustained winds of at least 111 mph.

Although those forecasts may alarm insurers and most of the public, Gov. Scott—true to his Boy Scout motto—is prepared. He said at the Governor's Hurricane Conference in May that he has a second roof for his $9.2 million Naples home stored in case his house gets hit. He wanted to make sure the tiles match.

Special Reports /

The 2011 Session: Less Than We Wanted, But We’ll Make Do

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