Florida Insurance Related Orders

Recently, a number of Florida insurance-related orders or rules have been issued. While some of these releases are a result of recent weather, the Consent Order released October 12^th refers to claims from the 2004 hurricane season. Contact information for each of these items has been provided should further information be needed.

Emergency order prohibits hurricane Wilma cancellations and nonrenewals

The Florida Office of Insurance Regulation issued on October 25, 2005, Emergency Order 83768-05-EO prohibiting insurers from canceling or nonrenewing policies covering dwellings or residential properties damaged by Hurricane Wilma. Effective for 90 days after the damage has been repaired. This Order covers properties in Brevard, Broward, Charlotte, Collier, DeSoto, Glades, Hardee, Hendry, Highlands, Indian River, Lee, Martin, Miami-Dade, Monroe, Okeechobee, Osceola, Palm Beach, Polk, St. Lucie and Sarasota counties. Specifics of this Order, including a Notice of Rights, can be found by calling (850) 413-3140 or go to: www.floir.com/pdf/Emergency Order 10-25-05.pdf

Emergency rule filed relating to hurricane Wilma

On October 25, 2005, the Department of Financial Services filed Emergency Rules placing certain restrictions on the business of public adjusting in the aftermath of Hurricane Wilma. Included in this emergency rule regarding ethical standards for the application of Hurricane Wilma claims is a limitation of public adjuster commissions to a maximum of 10% of insurance proceeds for both residential and commercial, and it also prohibits public adjusters from requiring, demanding, or accepting payments prior to a claim settlement. For a copy of the complete Emergency Rule, call (800) 342-2762, or go to: http://www.fldfs.com/Agents/Emergency_Rules_Wilma_10-24-05.pdf

Florida insurance consent order issued re: Nationwide Insurance Company

Florida's Office of Insurance Regulation (OIR) has issued a Consent Order (Case #: 77987-04-CO) after reaching an agreement with Nationwide Insurance Company of Florida. Under the terms of this Order, Nationwide is to: (1) complete a self audit of claims from the 2004 hurricane season, (2) correct underpayment of any of those claims, and (3) pay $250,000 for administrative costs incurred by the OIR for investigating consumer concerns.

Nationwide agreed to settle this matter, in accordance with the agreed-upon conditions, to avoid the costs and expenses of litigation. Among the issues included in this Order, released October 12^th:

• multiple deductibles
• correction of underpayment of 2004 claims, as warranted
• review of Nationwide's adjusting procedures

For a complete copy of this Order, please call (850) 413-3140, or go to: www.floir.com/PressReleases/ViewMediaRelease.asp?ID=2141