May 2017


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For South Florida homeowners, 2017 already figured to be a year of steep property insurance rate increases.

For customers of two insurance companies, state regulators have made those increases even steeper than the companies sought.

Why? State regulators say high costs stemming from excessive claims in the tricounty region requires the companies to charge customers more money than they would prefer.

The state “has an obligation to approve rates that are [financially] sound — which may be more or less than what a company requests,” said Sha’Ron James, the state’s Insurance Consumer Advocate, who did not participate in the rate decisions.

Two companies — Deerfield Beach-based People’s Trust Insurance and Tampa-based Homeowners Choice Property & Casualty — this week received approval for larger rate increases than they requested.

People’s Trust, with 54,267 home- and condo-owner policies in the tricounty region and 129,365 statewide as of Dec. 31, sought a 14.5-percent statewide average rate hike and instead got a 16-percent hike.

Homeowners Choice, with 53,040 home- and condo-owner policies in the tricounty area and 130,041 statewide at the end of the year, sought a 3.3-percent statewide average increase and instead got an 8-percent hike.

Please read & enjoy the full article below;

http://www.sun-sentinel.com/business/fl-bz-insurance-rate-hikes-20170509-story.html

Please call   Gateway/ Acentria Insurance at 1-888-244-7400 for free quotes on Home Insurance, Auto, Flood, Private Flood, Business & Commercial & Life & Disability as well as group Benefits. I am the Home Insurance Guru now the VP of personal Lines marketing at Acentria Insurance.

 

VIII. Private Flood Insurance Bill (HB 813)

 

HB 813 mandates that the Florida Commission on Hurricane Loss Prevention Methodology revise hurricane loss prevention models every four years. Current law requires that an agent notify the insured that if they choose to leave the National Flood Insurance Program (NFIP) and later return, they will pay the full-risk rate, not the NFIP-subsidized rate. Additionally, the agent must obtain a signed disclosure from the insured acknowledging such; current law requires the agent provide written notice to be signed by the applicant upon receiving the application to obtain private flood coverage. The new language allows the agent more flexibility by requiring the agent provide the signed notice at any point before the agent actually places flood coverage with a private insurer. However, the agent may avoid obtaining the acknowledgment if the NFIP allows insureds, at some point in the future, to return to the program at any time and still obtain the subsidized rate.

 

 The bill extends the sunset for insurers not having to get private flood rates approved from October 1, 2019 to October 1, 2025. The bill also extends from 2017 to 2019 an exemption from the diligent effort search requirement for surplus lines insurers. Also, if fewer than three admitted insurers are writing flood on July 1, 2019 when the diligent search exception expires, the agent may only obtain a number of declinations that meet the number of admitted insurers providing coverage. For example, if only one flood insurer is writing private coverage, only one declination will be required.

LEGISLATION THAT FAILED THIS SESSION:

III. Assignment of Benefits (HB 1421)

 

There were a number of variations of legislation and amendments to rectify the AOB abuse epidemic throughout Florida. Unfortunately, no good AOB measure was able to succeed. However, we were successful in fighting off measures by the trial bar that would have enhanced the already prevalent AOB abuse.

 

There were two main vehicles addressing AOB. HB 1421 by Representative Grant, and SB 1218 by Senator Farmer. The House bill was the preferred vehicle for insurers, whereas the Senate bill was a trial-bar friendly initiative. The House bill would have required disclosures be provided to the insureds before entering into an AOB. It also would have moved to a “loser pays” attorney fee system. The House legislation provided the insured with an opportunity to rescind the assignment within 7 days of entering into the contract with the vendor. Further, the bill increased consumer protections and required vendors to provide written estimates of the work to be completed and required the assignee to notify the insurer of the assignment within 3 days of it being executed.

 

The Senate bill was amended a number of times and ultimately was not heard in its final committee. Generally, the Senate measure neglected to change the current attorney fee law for vendors, essentially endorsing the notion that vendors under AOB assignments are eligible to receive unlimited attorney fees. The Senate bill was extremely unfriendly to insurers and did not contain any attorney fee language. It required insurers to eliminate the costs of attorney gees on cases in which they lose a claim case in litigation from being part of the base rate and would have, essentially, ended the ability to utilize a managed repair program or ability to invoke the right to repair on a particular claim.   ( Welcome to Higher Home Insurance premiums)

IV. Workers Compensation

 

HB 7085 addresses the recent decisions declaring some components of Florida’s Workers Compensation law unconstitutional. The bill would permit direct payments of attorneys by or on behalf of claimants and increases the total combined temporary wage replacement benefits (TTD/TPD) from 104 weeks to 260 weeks. It also allows a Judge of Compensation Claims (JCC) to award an hourly fee that departs from the statutory percentage based attorney fee limitation of $1500 under certain situations. Among several other components, HB 7085 also permits insurers to uniformly reduce premiums by no more than 5% if they file an informational-only notice within 30 days. Insurance industry representatives believe that the ability of a judge to award additional attorneys’ fees above the standard fee of $1,500 makes this bill less than ideal, and likely means that litigation will continue to expand causing rates to increase.

 

SB 1582 requires insurance carriers to authorize or decline requests for 

authorization from health care providers within a three-day period and provides that a request is deemed to be authorized if the carrier fails to respond. Like the House bill, the Senate bill increases the temporary partial disability benefits from 104 weeks to 260 weeks, in compliance with the Florida Supreme Court’s decision in Westphal v. City of St. Petersburg. SB 1582 eliminates the statutory fee schedule of $1,500 for setting claimant attorney’s fees but allows the judge to consider certain factors and permit deviation from the attorney fee schedule. 

 

 

The two bills remained different between chambers through the end of session. The House sought to curb attorney’s fees and was more industry friendly than the Senate bill, which was seen as friendlier to the trial bar.