Legislature OKs Insurance Bill

Tuesday, May 06, 2008

By RUSSELL RAY
The Tampa Tribune
Published: May 2, 2008

TALLAHASSEE - Faster payments of undisputed claims and an extension of the freeze on rates paid by customers of state-run Citizens Property Insurance Corp. are among the mandates contained in a property insurance deal between House and Senate Republicans.

Described as “consumer defense” legislation, the measure cleared the Senate on Thursday and was sent to Gov. Charlie Crist, who is expected to sign the bill into law.
In addition to increasing the state’s regulatory grip on private insurers, the measure would help private companies by offering them $250 million in matching funds for taking policies out of Citizens, thus reducing Citizens’ exposure.

The bill’s strongest consumer protection, however, may be the requirement that it pay the undisputed portion of a claim within 90 days, said Sen. Jeff Atwater, R-North Palm Beach, the bill’s Senate author. Companies that don’t pay on time could then be sued by the homeowner.

Insurance companies “have historically held out, hoping the person would give up or get tired and just take a lower amount,” Atwater said. “Now there’s going to be pressure to get that check in their hands.”