Senate passes insurance crackdown bill

TALLAHASSEE -- Two major pieces of Florida insurance legislation - one that would reduce the state’s risk in the event of a catastrophic hurricane, and another that would both tighten restrictions on insurance companies and freeze Citizens Property Insurance rates until 2010, breezed through the state Senate’s banking and insurance committee today.

The most sweeping proposal, introduced by Sen. Jeff Atwater, R-North Palm Beach, and co-sponsored by Sen. Mike Fasano, R-New Port Richey, includes more than a dozen provisions aimed mostly at tightening penalties for companies that break Florida law, more clearly defining how insurers set their rates, and what happens when the rates aren’t approved.

The proposals also include a rule that would force residential insurers planning to drop more than 10,000 policies to notify the state 90 days in advance, and to stagger the dropped policies “over a reasonable period.’’

The second bill, SB 2156, lowers the state’s catastrophe fund by $3-billion. Last year, the state increased the fund by $12-billion to help lower homeowner premiums.

Both measures head now to Senate President Ken Pruitt, who can refer the bills to another committee, or to the Senate floor for debate.

There is a companion bill for SB 2156 in the House, but no companion for the Atwater bill.

--Tom Zucco, Times Staff Writer