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NAMIC responds to particular session on property insurance coverage reform

With Florida’s legislators holding a particular session to handle the state’s problematic property insurance coverage market, the Nationwide Affiliation of Mutual Insurance coverage Firms (NAMIC) has issued an announcement saying that the particular session is “a possibility for the Legislature to move vital reforms.”

Through the particular session, the Senate Committee on Appropriations authorised two payments, which can transfer to the Senate. One of many payments – Senate Invoice 2D – seeks to determine a $2 billion reinsurance fund; revise home-owner eligibility standards for mitigation grants; require claimants to adequately set up that their insurers have breached the contract to assert for damages; and make the Florida Workplace of Insurance coverage Regulation publicly launch mixture sure information submitted by insurers.

The opposite measure, Senate Invoice 4D, seems to amend how roofing repairs are carried out and lined by insurance coverage. The invoice would forbid insurers from robotically denying protection for roofing that’s 15 years outdated or much less; it additionally adjustments present guidelines so that each one roofs which can be greater than 25% broken however adjust to Florida’s 2007 constructing code to be repaired as a substitute of changed.

NAMIC positively responded to the authorised payments in an announcement.

“The package deal, whereas not excellent, makes much-needed progress in considerably reforming the litigation setting that has allowed rampant lawsuit abuse in Florida lately and has despatched {the marketplace} right into a slow-motion collapse,” mentioned NAMIC Southeast regional vice chairman Caitlin Murray.

NAMIC confused in an announcement that whereas Florida at the moment represents solely 9% of property claims within the US, it additionally accounts for 79% of insurance coverage lawsuits within the nation.

“Because the invoice at the moment stands, we imagine it would enhance the property insurance coverage local weather and can depart Florida policyholders in a greater place than they’re at the moment, notably in reforming Florida’s damaged unhealthy religion and legal professional’s charges statutes that incentivize pointless litigation and drive prices upward,” added Murray. “NAMIC anticipates this session will result in fewer lawsuits and, as these prices fall, insurers shall be inspired to do enterprise in a extra secure litigation setting in Florida.”

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