Gov. Scott signs controversial insurance bill

TAMPA - Sen. Mike Fasano (R-New Port Richey) is calling on Gov. Rick Scott (R-Fla.) to veto a controversial bill that would affect property insurance rates.

The bill allows insurance companies to raise the rates for reinsurance costs by as much as 15 percent a year. Reinsurance costs would make up a portion of any overall rate increase the insurance company would ask for.

“It’s a rate increase,” said former insurance consumer advocate Sean Shaw, who now works as an attorney for the Merlin Law Group in Tampa. “The insurance companies were very adept at playing the victim (during this legislative session).

Because of the potential rate increases, Sen. Fasano has asked the governor to veto the bill.

Tom Diana, vice president for strategic claims at HomeWise Insurance in Tampa, supports the bill. He said while the bill does allow insurance companies to ask for a 15 percent increase in premiums for reinsurance costs, the company must still justify that increase to the Office of Insurance Regulation, who would then have to approve it.

“The process insurance companies go through for any filing or any rate increase would be akin to a thorough medical evaluation of any professional athlete,” Diana said.

The bill would also shorten the amount of time the Office of Insurance Regulation would have to review a rate increase. They currently have 90 days. Under the new law, they would only have 45 days.

The legislation would also lessen the amount of time people can make claims about hurricane or sinkhole damage. Currently, homeowners have up to five years in both cases. Under the bill, they would only have three years for hurricane damage and two years for sinkhole damage.

Backers say those moves would streamline the process and make it more efficient. Detractors say insurance companies are trying to make it harder to file claims.

The bill passed both the House of Representatives and the Senate. The governor can either sign the legislation or veto it.