Reflecting on the 2006 legislative session, Florida Insurance Council Vice President Gary Landry chose the reorganization of Citizens Property Insurance Corporation (Citizens) as the most significant of the new bills.
While lauding the changes, he also called for patience, noting that these changes need time to incubate to make a long-term difference. His are among the many fingers being crossed that Florida will be spared an onslaught of damaging storms this year.
"We could use a break," he said, "Especially early in the year. Many companies are looking at their exposure"
He expressed special relief at the application of more than $700 million in tax revenue to the deficits in Citizens, sparing all homeowners substantial assessments on top of higher rates for homeowners' coverage.
Addressing the reality of living in the storm-prone state, Landry had praise for the mitigation program endorsed by lawmakers that will "harden homes — especially older ones — that don't meet the tougher codes since 1992. The best experts told the legislators that the best thing to do is mitigate," he said. Tougher building codes will now apply to the Panhandle area, where residents had a taste of Katrina's wrath and a front-row view of the devastation suffered all along the Gulf Coast last season.
Supporters for reforms in another area — the PIP bill with its sunset provisions — were disappointed, however.
"They passed it without the reforms, but with a later end," Landry reported, lamenting the lack of legal caps or medical fee schedules. He said it was apparent from ongoing discussions in committees that reforms were not likely this session. Rep. Don Brown (R-DeFuniak Springs) was the only "no" vote when the bill came up in its final form. Did that surprise Landry?
"It didn't surprise me that he would vote against it." He was disappointed, however, that "no one else would take a stand." It was expected that Gov. Jeb Bush, as he predicted, would veto the bill without reforms. Many of the hard-fought-for reforms would have helped reduce the frequent fraud that adds such significant costs to auto owners' cost of insurance.
"We'll see where it goes from here," a philosophical Landry said.
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