Legislative Session 2010
Anti-Consumer Insurance Legislation Issues

 

Waldo Faura, Founder, President

Belen Valladares, Founder, Vice-President

Waldo Faura III, Legislative Affairs

 

Items of concern:

 

  • “Look for legislation that would no longer require replacement cost value for a roof more than 20 years old”*.

    How can this affect you?
    This is less than half the life of tile roofs, (as per industry reports See **)
  • “Change the five-year statute of limitation for filing a claim to as little as two years.”*

    How can this affect you?
    It has been documented that hurricane damaged roofs may take 3 years and more for water to penetrate, two years would not be enough time for damages to become apparent, leaving the insured unprotected.

  • Replacement costs vs. actual cash value.*
    Insureds are already getting watered down policies with limits in everything, from mold to flooring.  

 

  • De-regulation Bill – “Eliminating the role of regulators in approving rates.”  “Consumer advocates have opposed deregulation — eliminating the role of regulators in approving rates — saying it would trigger a big spike in rates.”
    Remember he 700% increases of 2006, 2007?
  • Paying for 100%  premium – no 80-20 yet not getting 100% coverage.

  • Insurer’s payouts not as high as thought.
    “Near-term hurricane models used by insurers had predicted storm damage ranging from $48.8 billion to $54.6 billion between 2006 and 2009. Instead, storms caused about $13.3 billion in damage over that time frame.”*  Also please see article:

 

“P&C Insurers Net Close To Triple In ’09, Highline Data Reports”


“U.S. insurers regained lost ground in 2009 with the property and casualty sector’s net income nearly tripling, to $35 billion, according to the Highline Data Performance Monitor.”

 

To read complete article click here:

 

http://www.property-casualty.com/News/2010/3/Pages/PC-Insurers-Net-Close-To-Triple-In-09-Highline-Data-Reports.aspx


*Source:
(St Petersburg Times Feb 28  - Link:   http://www.tampabay.com/news/business/banking/on-the-agenda-letting-insurers-charge-more/1075649. )

 

Need for an Insured Bill of Rights

 

Bills of rights have been written into law to assure the protection of consumers and the general population.  Amongst these are:
 

  • The Patient’s Bill of Rights,
  • Tenant’s Bill of Rights in accordance to the landlord-tenant act of Fl.
  • We can even include in this the Miranda rights which are read to a perpetrator at the point of arrest to assure him of his rights.

Urgent need for a properly written “Insured’s Bill of Rights”

 

  • Endorsements or exclusions should be in all caps and bold letters in all policies.

 

  • Florida being the most windstorm-prone state in the union has a population that is increasingly dependent on insurance for the protection of their most valuable asset: their homes.  If we read the insured’s bill of rights and compare it to all other bills of rights that have been developed over the years, we immediately see that is woefully inadequate in the protection of insureds.  In short, the citizens of Florida did not have an insured’s bill of rights.  

 

  • What is commonly called the insured’s bill of rights seems as it was written by the lobbyist of the insurance industry, a million dollar a day lobbying force.  Before this legislative session is through the citizens of Florida deserve no less than an adequate, fair, comprehensive bill of rights ensuring them of their constitutional rights. 

 

  • Insured’s Rights to Representation

  • Denying the constituents rights to representation in the handling of a situation as difficult and complex as an insurance claim is akin to reversing Miranda.

  • In addition the progress that has been made under the present administration has granted insured’s the value that they have been paying for as stated by policy to wit, IF A POLICY STATED RCV no longer is there a holdback on residential policies.  This was wisely enacted upon by this administration to assist in the recovery after a catastrophic event.  We are of the belief that the only ones who would profit from reversing back to what has been abolished are the insurance companies and their hired contractors.  This issue is also complicated by unfair depreciation and many other factors and we should just say no. It has been addressed and settled by this administration. Replacement cost policies are to be paid as such. 

  • So many bills have already been introduced and so many more will be introduced as well as amendments and the rest of the tactics to sneak things through by last session day that it renders it useless to go line item by line item and bill by bill. 

 

  • Let it suffice to say that the few crumbs of rights that the insured’s in the State of Florida have achieved during this administration must not be taken away, no matter what bill, house, senate, amendment or legislator.

  • According to studies done at FIU*, engineers have concluded that mechanically fastened tile roofs affected by the lifting action of wind gusts move the fasteners creating leak points which are often not discovered for years, especially during drought years.  Therefore we believe that shortening the statute of limitations from the present 5 years to the proposed 3 year limit is totally unacceptable in the State of Florida. The most windstorm prone state in the union, draught years among many factors cause delay in damage becoming visible.

  • We propose a Proper Insured’s Bill of Rights in which proper representation is not denied but scribed into all Property policies in Florida. Making the policy holder aware that they have the right to representation by counsel, adjusters that will work for them, mediation and appraisal.

 

  • Mr. Sean Shaw recently wrote- Section 626.9641(1)(b), Florida States, Policyholders Bill of Rights, states, in part, that policyholders shall have the right to obtain comprehensive coverage.  However, currently, policyholders are not given an opportunity to purchase comprehensive coverage in the State of Florida.  Property insurance policies have been eroded over the years by coverage exclusions and limitations. Recently, there have been several form filings, which further erode coverage by placing limits or exclusions on items that the homeowner has no control over.  Although there are several websites available for homeowners to Shop and Compare, these websites only compare prices and do not explain the vast difference in the coverage provided by each insurance company.  

 

  • We are of the opinion that Florida’s Policyholders Bill of Rights is woefully inadequate.

  • It must guarantee policyholders unfettered right to representation.
  • It must guarantee policyholders receive the protection that a reasonable person would conclude has been offered in the purchased policy. If payment is calculated on 100% value 100% coverage is not unreasonable. There are many other issues that a true policyholder’s Bill of Rights must have.

**A Research Project Funded by The State of Florida Division of Emergency Management Through Contract # 06RC-A%-13-00-05-261  Prepared by: Amir Mirmiran, Ton-Lo Wang, Caesar Abishdid, Peng Huang, Diego L. Jiménez, and Chadi Younes Department of Civil and Environmental Engineering Florida International University In Partnership with: The International Hurricane Research Center Florida International University

 

Thank you!

 

Waldo Faura, Founder, President

Belen Valladares, Founder, Vice-President

Waldo Faura III, Legislative Affairs