June 19, 2019
Happening This Week
House Bill 301 Signed by Governor
House Bill 301 was signed into law by the Governor DeSantis yesterday afternoon. There several surplus lines insurance provisions that will now go into effect July 1, 2019.
The first is the removal of the $35 cap for the policy fee charged by the surplus lines agent. A surplus lines agent may now charge a “reasonable” per policy fee that will still have to be reported to the FSLSO when making policy filings and will remain taxable. This fee must also be itemized separately to the insured before purchase and enumerated in the policy.
Additionally, a retail agent may also charge a “reasonable” per-policy fee for surplus lines policies which must also be itemized separately to the insured before purchase.
Finally, the diligent effort requirement of one declination (instead of three) on residential structures with a replacement cost of $1 million dollars will be lowered to $700,000.
If you have any further questions on these law changes contact Agent & Insurer Services at 800.562.4496, option 1 or email agent.services@fslso.com.
FAIA Annual Convention
This week the FSLSO team will be attending the Florida Association of Insurance Agents' Annual Convention in Orlando.
The convention runs from today through Friday at the Orlando World Center Marriott. Stop by and see us at booth 730 in the convention hall.
Chat with us and you may make it on the air. We will be recording segments for the next episode our podcast, the FSLSO PalmCast.
See ya there!
Headlines
‘Omnibus Prime’ Insurance Bill Gets Governor’s Signature
Gov. Ron DeSantis signed into law Tuesday the so-called “Omnibus Prime” insurance bill meant to reform and modernize certain parts of the state’s insurance regulations.
The bill (HB 301) is a catch-all bill often referred to as a “train” because it links so many changes into one bill.
Among the biggest changes to Florida law under the bill, it increases the reimbursement rate insurers can receive from the Florida Hurricane Catastrophe Fund from 5 percent to 10 percent for losses on contracts effective after June 1, 2019.
OIR Memorandum on New Assignment of Benefits Law
On May 23, 2019, Governor DeSantis signed House Bill 7065, a significant reform to Assignment of Benefits, into law. The bill is now Chapter 2019-57, Laws of Florida, (“Act”) and generally becomes effective on July 1, 2019. The Florida Office of Insurance Regulation (“OIR”) is issuing this Informational Memorandum to notify insurers of the passage of the Act, to discuss various provisions of the Act, and to provide guidance to facilitate its implementation.
The Act creates Section 627.7152, Florida Statutes, which contains definitions and required provisions for assignment agreements executed under residential property insurance policies or commercial property insurance policies. Because these required provisions relate to the assignment agreements themselves, and not to the terms of the insurance policy, no form or rate filings are required to comply. If insurers choose to notify their policyholders of these new assignment agreement provisions, they may do so without filing such notice with the OIR.
Florida's New Bill Lets Driverless Cars Be Tested With Minimal Restrictions
Presently, there are few places where a company can test out its self-driving cars without the requirement of a human safety driver in the car ready to intervene, California being chief among them. The trouble with places like California is that they require a lot of governmental oversight and special permits, and it's all very complicated and expensive.
Enter Florida, according to a report Thursday by Automotive News.
Florida governor Ron DeSantis signed House Bill 311 into law at Florida's SunTrax, a dedicated transportation research and development center. Also in attendance were the bill's sponsors, including Senator Jeff Brandes and Representative Jason Fischer.
Flood Updates: NFIP Reauthorized; FEMA to Release Data
Earlier this week, the U.S. House of Representatives passed a disaster aid package that included an extension of the NFIP through Sept. 30, the end of the fiscal year. Earlier today, President Trump signed the legislation into law.
Congress had previously passed a two--week extension of the program through June 14, so this new legislation gives Congress more time to work on a long-term reauthorization.
FEMA Admits It’s ‘Short a Few Thousand Employees’ as Hurricane Season Begins
The Federal Emergency Management Agency (FEMA) said Wednesday that the disaster aid and recovery agency is still significantly understaffed, nearly two years after recovery efforts during the devastating 2017 hurricane season were hindered by a lack of staffing.
In a hearing June 12, acting FEMA Administrator Peter Gaynor told the House Committee on Homeland Security that the agency is prepared and ready to tackle any potential disasters in coming months. But Gaynor’s exchange grew heated as Chairman Bennie Thompson (D-MS) pressed the FEMA head about staffing levels.
www.fslso.com
Have questions? Contact us at 800.562.4496, option 1 or email agent.services@fslso.com.
Facilitating Compliance Through Innovative Solutions
