CS/CS/HB 447 - Property Insurance Summary

• Extends the repeal date for medical malpractice insurance premium exemption from emergency assessments under the Florida Hurricane Catastrophe Fund from May 31, 2010 to May 31, 2013.

• Increases surplus requirements for domestic insurers: new residential property insurers must maintain $15 million surplus, and existing residential property insurers must maintain $12 million surplus.

• Establishes new rate filing procedures allowing insurers to file separate, limited rate changes for reinsurance costs, financing products, and inflation trend factors, subject to a 10 percent individual policyholder rate cap.

• Creates a new "residential property insurance option" (Section 627.7031) allowing insurers to offer rates not subject to full Office of Insurance Regulation rate regulation, provided applicants receive Citizens Property Insurance Corporation premium comparisons and sign acknowledgment forms.

• Reforms sinkhole claim procedures by revising investigation standards, establishing neutral evaluation as a mandatory alternative dispute resolution process, requiring repair contracts within 90 days, and increasing professional engineer/geologist involvement in claim determinations.