Lawmakers debated a property insurance package that would strengthen insurers by reducing their costs and allowing certain rate hikes.
The Senate's banking and insurance committee postponed a vote on the measure because it had not finished considering more than 30 changes proposed to the bill. The committee plans to take it up at its next meeting, which could be in two weeks.
The bill, SB 408 by Sen. Garrett Richter, R-Naples, has more than 20 provisions, many similar to those in legislation vetoed last year by former Gov. Charlie Crist due to concerns about costs to consumers.
Supporters of the legislation say the bill could actually lower premiums. "Rates might be lower today than they are" if the legislation hadn't been vetoed, said Sam Miller, executive vice president of the Florida Insurance Council.
The bill, as proposed, does not require insurers to pass the savings to consumers. Miller said that provision isn't required because Florida law already bars insurers from charging excessive rates.
The bill this year does not include a provision allowing certain automatic rate hikes, Miller noted, but it does allow insurers to raise rates if they can show they're losing money on discounts to policyholders who fortify their homes against hurricanes. It would also strip regulators' ability to restrict how much insurers spend on advertising and agent commissions.
Insurance industry officials, regulators and key legislators say provisions in the bill addressing rising sinkhole costs are the most important because they require policyholders throughout the state to indirectly pay more in premiums due to sinkhole claims concentrated in the Tampa area. They say it appears some of the claims are for minor cracks in driveways and could be considered frivolous.
But two of the sinkhole-related provisions drew sharp criticism from lawmakers today. One would allow insurers to decline offering sinkhole coverage and another would require policyholders to pay for part of the $9,500 average cost of testing to see if there is a sinkhole, if the expert determines there is not a sinkhole.
Sen. Mike Fasano, R-New Port Richey, said many homeowners can't afford to help pay for testing.
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