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On the final day of this legislative session, Florida lawmakers passed compilation legislation that aims to carry more control over Florida homeowners insurance costs, raises the state’s minimum capital supplies for insurers, cracks down on errant public adjusters, allows insurers to more promptly pass through costs of reinsurance to policyholders, and shields independent agents’ commissions from directive by state regulators.

The bill, SB 2044, sponsored by Sen. Garrett Richter, R-Naples, also allows the Office of Insurance Regulation (OIR) to examine managing general agencies affiliated with insurers it regulates and puts a three-year limit on filing claims after a hurricane. It requires that insurance expenditure is in fact used to repair homes spoiled by a tornado or sinkhole. The bill must still be signed by Gov. Charlie Crist before it can become law. Crist has endangered to rejection legislation raising premiums.

But Florida Insurance Commissioner Kevin McCarty welcomed the channel of the Richter bill. “I am appreciative that the Legislature has addressed some of the cost drivers causing instability in our homeowners’ insurance market,” said McCarty. “Furthermore, the legislation strengthens our solvency tools to ensure that insurers are capable of paying claims.”

While some insurers had hoped for a stronger price deregulation bill, most backed this measure and its rules on public adjusters and claims payments, although they expressed some concerns over potential over-regulation of MGAs. Insurer CEOs pushed for its passage in the final days of the session.Liz Reynolds, Southeast state affairs manager for the National Association of Mutual Insurance Companies (NAMIC), said her members had hoped for a stronger bill but were pleased something passed.

“Addressing cost drivers, such as public adjuster expenses, replacement cost claims, reinsurance premiums, and inappropriate mitigation discounts, should help companies that are struggling to maintain surplus and stay in business to make good on promises to policyholders,” she said.