The Florida Senate on Tuesday passed Senate Bill 2A, Property Insurance, by Sen. Jim Boyd, R-Bradenton, legislation designed to improve the property insurance market for homeowners, according to a statement from the office of the Senate President.
The bill aims to ensure that policyholders have access to high-quality, affordable property insurance in the private market. The bill requires insurance companies to more quickly communicate, investigate and pay valid claims.
Expected shortfalls in the reinsurance market are addressed through a new optional government reinsurance program.
Excessive litigation, known to drive up costs, is addressed by eliminating one-way property insurance attorney fees and instead giving both parties the opportunity to obtain fees through the offer of judgment.
The bill also strengthens the supervisory authority of the Office of Insurance Regulation over property insurance companies, the statement said.
Late. Boyd, chairman of the Senate Banking and Insurance Committee, said in the statement that “we are trying to stabilize a market that is in free fall,”; with reinsurance shrinking in global markets as costs rise.