Mar 29, 2007 8:12 am US/Eastern
Fla. House Could Overturn Insurance Relief
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TALLAHASSEE (CBS4) ―
South Florida homeowners who breathed a sigh of relief when the state legislature passed a number of insurance reforms in January during a special session may have been premature.
A so called "glitch bill," designed to fix technical problems in the special session bill, is gaining momentum in the House.
This bill would virtually undo several key provisions in the special session bill that offered insurance relief to homeowners.
One provision of the special session bill required insurance companies to pass any re-insurance savings onto their customers. But the "glitch bill" would exempt those companies who negotiated their re-insurance before the special session convened.
Another provision of the "glitch bill" would require claims to be resolved within 90 days for residential homeowners only, leaving condo owners covered under a homeowner's association policy and small businesses without the same protections. Their only recourse would be to go to the Office of Insurance Regulation and ask for a resolution.
The "glitch bill" is expected to come up for a full vote in the House Thursday. So far, there's no companion bill in the Senate, but the chair of the Senate Banking and Insurance Committee said he expects a similar bill to be brought to the floor within the next two weeks.
(© MMVII, CBS Broadcasting Inc. All Rights Reserved.)
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