Florida House moving on reform ‘to ensure homeowners are protected from excessive rate increases’
From Florida’s House Speaker: THE FLORIDA HOUSE WILL ENSURE ASSIGNMENT OF BENEFITS (AOB) REFORM SAVINGS ARE PASSED ALONG TO CITIZENS’ RATEPAYERS
Legislation Will Prohibit Raising Rates in 2019 unless Rate Filing Includes Savings Due to Reforms
Speaker Jose Oliva released the following statement upon introduction of an amendment to HB 7065.
“We are consistently told that AOB reform is necessary and will halt skyrocketing insurance costs in some areas and prevent those same forces from taking root elsewhere. Florida House Republicans believe that if these reforms are successful, the ratepayers should receive the benefits. I commend Chairman Sprowls, Chairman Renner, and Chairman Rommel for this legislation and hope the Senate will join us in this endeavor.”
Chairman Renner added, “The purpose of AOB reform is to ensure homeowners are protected from excessive rate increases caused by AOB abuse. This reform will lower costs for property insurance. We expect, and Floridians demand, that the savings should be passed on to the hardworking people who pay the bills. This is especially true when it comes to a government run insurer. This is consistent with our principles and that is how we will govern. ”
Former U.S. Senate candidate Alexander Snitker told The Global Dispatch that “This is one of the major issues that the Florida Legislature is tackling in the 2019 session. Considering the way the government controls this industry I am glad to see that the taxpayers are being taken into consideration.”
photo 401(K) 2012 via Flickr
What the Amendment Does –
- Prohibits Citizens from implementing rate changes in 2019 for residential DP-3 and HO-3 policies unless the rate filing reflects savings due to AOB reforms in the bill.
- HO-3- Available for detached, single-family homes and duplexes in which at least one unit is owner-occupied; must be primary residence. It covers the building, other structures on the property, and the owner’s personal property, and also provides additional living expense and personal liability coverage.
- DP-3- Available for tenant-occupied properties and properties that otherwise may not qualify for an HO-3 or HO-8 policy. It provides coverage for the dwelling, other structures on the property, personal property, and loss of rent or additional living expense
- The rate filing must include an exhibit showing the impact of the bill’s AOB reforms on those policies.
- Citizens has to provide to policyholders details on the projected savings.
