Fla. considers claims law glitch, storm tax break

April 9, 2007

Flashlights, radios, tarps and other hurricane supplies would be tax free for 12 days at the beginning of hurricane season, under a measure the Florida House has under consideration.

Floridians received a similar tax break last year leading into hurricane season, which begins June 1.

The House is also debating a measure aimed at fixing technical glitches in a broad hurricane insurance bill lawmakers passed in January. That bill was meant to force property insurance rates lower, after residents complained of huge increases in property insurance costs since the devastating hurricane seasons of 2004 and 2005.

But what was supposed to be a simple technical fix generated a largely partisan debate on how quickly insurance companies must deal with hurricane claims.

The 90-day Prompt Pay provision of the new law requires insurers to investigate and either pay or deny claims within three months.

The glitch bill (HB 7077) the House is considering would remove condominium associations and businesses from the law, meaning insurers wouldn’t have to follow the 90-day rule for that type of property.

Democrats complained the measure backtracked on the consumer-friendliness in the law enacted in January. But the Republican-dominated House voted 63-47 to keep the changes in the bill.

Topics Claims Windstorm Hurricane

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