Topic: FL Office of Insurance Regulation

Up to 75,000 policies were approved for removal Tuesday, but only about 11,000 policies will move from Citizens Property Insurance Corp. into the private market. Still, the timing of the latest take-out round right before hurricane season undercuts one of the arguments for a deal to give another company up to $52 million in backdated premiums for taking over up to 60,000 policies during hurricane season last year.

Lawmakers approved a plan to entice more private companies to underwrite flood insurance but major legislation to reduce the size of the Cat Fund and significantly rollback coverage in Citizens Property Insurance Corp. didn't pass.

Regulators have approved Southern Oak Insurance Co. to select up to 10,000 policies from state-run Citizens Property Insurance Corp. in July.

Bill sponsor Sen. Jeff Brandes, R-St. Petersburg, yielded to the House version of the bill requiring insurers to cover the full replacement value of the home, not just the amount of the outstanding mortgage.

A provision allowing unregulated surplus lines insurance companies to participate in state-run Citizens Property Insurance Corp.'s clearinghouse program was stripped out of SB 1672 by the House on Tuesday.

The chambers continue to clash over a provision allowing private companies to offer flood coverage only up to the outstanding amount on a mortgage.

The House and Senate are still squabbling over whether to allow private insurance companies entering the flood insurance market to offer coverage only up to the amount of the outstanding mortgage on a home.

Insurance Commissioner Kevin McCarty issued a memo to insurance companies last week reminding them to waive deductibles for crime victims. Attorney General Pam Bondi's office found 13 companies had violated a state law requiring them to waive the deductibles for eligible crime victims.

Companies are hoping PIP claims will continue to fall. State cites a 2012 law for reducing fraud and abuse in personal injury claims.

An insurance consulting firm's report shows Florida homeowners had an average statewide rate increase of 11 percent last year, but rates have come down slightly for some companies this year.

Legislation to reduce the number of policies underwritten by the state-run insurance company is still being formed Senate, but Gov. Rick Scott's concerns that the proposal could raise rates for policyholders may be an obstacle.

Comprehensive reforms on most insurance issues will be difficult to pass into law this year because Gov. Rick Scott will want to avoid changes that boost property insurance rates or disrupt the housing market. Look for incremental changes to reduce Citizens Property Insurance Corp.'s risk as well as some form of flood insurance bill to grab headlines this session.

Sen. Jeff Brandes' bill to get private companies to offer flood insurance passed through one Senate panel Thursday, but after complaints from Sen. Jack Latvala the measure will be rerouted to the Senate Banking and Insurance Committee.

Insurance Commissioner Kevin McCarty allowed an order authorizing fast-track changes to policies to expire Dec. 31. Regulators believe they have enough resources to prevent another backlog of "form filings" from piling up.