Senate Bill 408

Senate Bill 408 makes sweeping changes to laws related to property insurance, primarily

residential property insurance

SENATE BILL 408

Senate Bill 408 Florida State Senate

• Increases minimum surplus requirements to $15 million dollars for Residential Property

Insurers

SENATE BILL 408

Senate Bill 408 addresses many issues that will impact your

• Property Insurance Premiums

• Surplus Requirements for residential property insurers

• Changes current replacement cost coverage

• Requires windstorm & hurricane claims to be filed within 3 years

• Sinkhole loss claims within two years

Senate Bill 408

If you are a homeowner

You Need to Get Involved

Before it is too late!

Senate Bill 408

• Would allow an insurer to cancel or non renew your property insurance policy

• Removes the requirement that a property insurer must offer Sinkhole coverage

• Eliminates application of statutes governing catastrophic ground cover collapse and sinkhole loss coverage

Senate Bill 408

IF YOU ARE A PUBLIC INSURANCE ADJUSTERYou need to get involved!

SB 408 Revises the regulation of public insurance adjusters by placing limits on public adjuster compensation, prohibiting

certain statements in public adjuster advertising, revising the contents of the public adjuster contract

Senate Bill 408

Senate Bill 408 Summary• Increases the minimum surplus requirements

for residential property insurers to $15 million• Allows insurers offering personal lines

property insurance to provide written notice of policy

• Changes to their policyholders without having to non-renew an entire insurance policy due

Senate Bill 408

• Modifies current replacement cost coverage and actual cash value provisions relating to dwellings and personal property

• Requires windstorm and hurricane claims to be brought within three years and sinkhole loss claims to be brought within two years

Senate Bill 408

• Modifies provisions related to windstorm damage mitigation discounts for residential property insurance and repeals the provision requiring the OIR to develop a method correlating mitigation discounts to the uniform home grading scale

Senate Bill 408

• Renames the Citizens High Risk Account the Coastal Account and extends to December 1, 2013, the requirement to reduce the boundaries of the Citizens’ High Risk Account (wind-only coverage) if the probable maximum loss is not reduced at least 25 percent from the benchmark

Senate Bill 408

• Allows an insurer seeking to take policies out of Citizens to do so in 45 days

• Clarifies the ethics requirements for specified board members of the Citizens Property Insurance Corp., and provides that Board members abstain from voting under certain circumstances

Senate Bill 408

Allows an insurer to cancel or non-renew a property insurance policy upon a minimum of 45 days’ notice based on a finding that the insurer lacks adequate reinsurance coverage for hurricane risk and other financial factors

Senate Bill 408

Revises the regulation of public adjusters by

placing limits on public adjuster compensation, prohibiting certain statements in public adjuster advertising, and revising the contents of the public adjuster contract

Senate Bill 408

Removes the requirement that a property insurer must offer sinkhole coverage and eliminates application of statutes governing catastrophic ground cover collapse and sinkhole loss coverage from commercial property insurance policies;

Senate Bill 408

Revises what constitutes a sinkhole loss Revises procedures for insurers and

policyholders relating to standards for sinkhole insurance claim investigations and revises the neutral evaluation process for sinkhole disputes

Senate Bill 408

Provides changes to the procedures pertaining to sinkhole reports by professional engineers or professional geologists and repeals the sinkhole database

Senate Bill 408

Florida law specifies certain minimum surplus and capital requirements for property and casualty insurers to transact insurance in the state. Under s. 624.407, F.S., the minimum surplus requirement for new property and casualty insurers in Florida, which includes residential property writers, is the greater of $5 million or ten percent of the insurer’s liabilities

Senate Bill 408

The minimum surplus requirement for a residential property insurer, once it is licensed in Florida, is the greater of $4 million or ten percent of the insurer’s liabilities

Senate Bill 408

The current surplus and capital requirements for property and casualty insurers have not been changed since 1993

Senate Bill 408

Senate and House Members http://www.flsenate.gov/Senators/

http://www.myfloridahouse.com/Sections/Representatives/representatives.aspx

Senate Bill 408

To find your Legislators, enter either your mailing address or zip code. * = Required

Option 1: Mailing Address : *City: , FL

— OR —Option 2: Zip Code *Zip:

Senate Bill 408

This Bill in current form will impact

• Property Owners• Condominium Owners/Residents• Mortgage Banks• Businesses• Everyone residing in Florida

Senate Bill 408

CITIZENS CALL TO ACTION IS NEEDED