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Fast Track Changes for Residential Property Insurers Extended for 6 Months

In Florida Legislation, Insurance Industry, Insurance News on July 8, 2013 at 1:32

A temporary order from Insurance Commissioner Kevin McCarty allowing residential property insurers to make changes to their policies more quickly has been extended for 6 months.

McCarty issued the order last year because of budget cutbacks in recent years and a large volume of “form filings” — changes sought by insurers to the coverage they can offer consumers — led to a hefty backlog of filings at the Office of Insurance Regulation.

The order allows property insurance companies to certify new changes to their policies are in compliance with state laws and offer the new policies in the market after 30 days without the typical review from regulators. OIR officials can later withdraw the new policies from the market.

Consumer advocates and trial lawyers have criticized the orders as a “trust us” measure from the insurance companies that could lead to abuses.

Rep. Mike Fasano, R-New Port Richey, a perennial insurance industry critic, has used his position as chairman of the Joint Administrative Procedures Committee to crack down on agencies he thinks aren’t following state laws. In a recent interview, he said he’s concerned about reduced oversight from regulators, but acknowledged lawmakers may have played a role in the buildup of the backlog with cuts to OIR’s budget during the recession.

Read more about it here.

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