On Dec. 16, 2022, the Gov. DeSantis signed into law Senate Bill 2-A (SB 2-A), a property reform bill. SB 2-A includes provisions to help stabilize Florida’s property insurance market, increase competition and strengthen consumer protections.
SB 2-A builds on the legislation passed during the special session held earlier this year to address concerns with the property insurance market. SB 2-A became effective on Dec. 16, 2022.
Senate Bill 2-A Overview
SB 2-A attempts to strengthen the property insurance market by:
- Eliminating one-way attorney fees for property insurance claims to disincentivize frivolous lawsuits;
- Realigning Florida’s market to follow best practices that will promote more market competition in the private insurance industry;
- Reducing the burden of excessive and predatory litigation to help bring down costs for homeowners;
- Enhancing the Office of Insurance Regulation’s ability to complete market conduct examinations of property insurers following a hurricane to hold insurance companies accountable and prevent abuse of the property appraisal process;
- Reducing timelines for insurers to get payments out to policyholders;
- Building on reforms passed earlier this year by committing additional funding to provide temporary reinsurance support to help stabilize our market; and
- Creating the Florida Optional Reinsurance Assistance Program that authorizes eligible insurers to purchase reinsurance coverage.
SB 2-A was passed to help stabilize Florida’s property insurance market, increase competition and strengthen consumer protections.
Insureds and insurers should become familiar with their rights and obligations under the new law. If you have any questions, please contact Bates Hewett & Floyd for more details.
This Legal Update is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. ©2022 Zywave, Inc. All rights reserved.