CS/HB 529 — Insurance Guaranty Associations
by Insurance and Banking Subcommittee and Reps. Webb, Donalds, and others (CS/SB 898 by Banking and Insurance Committee and Senators Gruters and Broxson)
This summary is provided for information only and does not represent the opinion of any Senator, Senate Officer, or Senate Office.
Prepared by: Banking and Insurance Committee (BI)
The bill increases the obligation upon insurer insolvency of the Florida Insurance Guaranty Association (FIGA) for covered claims of an insured condominium association or homeowners association to the amount of each covered property insurance claim less than $200,000 multiplied by the number of condominium or other residential units, which is a per-unit increase of $100,000. The bill thus doubles the possible claim payout an insurance consumer could expect to receive upon experiencing both a covered loss and the insolvency of their insurer. The bill also increases the amount of funding available to FIGA through emergency assessments levied against insurers for the payment of claims of insurers rendered insolvent by the effects of a hurricane by authorizing emergency assessments of up to 4 percent of an insurer’s net written premiums in this state in any one calendar year, which is an increase from the current limit of 2 percent.
If approved by the Governor, these provisions take effect July 1, 2020.
Vote: Senate 39-0; House 115-0