Florida’s Senate gave its initial approval 8-1 to Senate Bill 420, which aims to provide private alternatives to the federal flood insurance program.
The proposed law allows private companies to set rates without prior approval until 2025, which will open the door to surplus lines companies with very little regulation.
Related: Check out Flood Risk 2017 – Florida – a master class
Bill proponent Senator Jeff Brandes told the legislature that its purpose is to provide “alternatives to costly federal insurance,” a report by PalmBeachPost.com said.
Currently, private agents and companies can act as middlemen for the National Flood Insurance Program and administer these policies under a “write your own program” the report added.
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However, Senator Gary Farmer said the proposed law represents “unregulated insurance.”
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