Insurance Week: FHLB Push for Parity on Insurer Collateral, FL Roof Bill & More

FHLB Pushing for Parity with Banks on Insurer Collateral:

Officials from the Federal Home Loan Bank have been urging state lawmakers to approve measures putting Home Loan Banks on equal footing with banks when it comes to collateral pledged by insurance companies. Such laws would allow the FHLB to stop requiring member insurers to pay a premium on loans, saving the insurers considerable sums.

Twenty-one states have passed such laws in recent years. And Kentucky’s House became the first chamber to approve one (HB 171) this year. But there hasn’t been much movement on a pair of FHLB-backed bills in Florida (HB 1405 and SB 1888). Measures are also pending in New Jersey, New York and Virginia (INSURANCE JOURNAL, STATE NET)

FL Senate Committee Passes Cash Value Roof Bill:

Florida’s Senate Banking and Insurance Committee passed a bill (SB 1728) that would allow insurers to offer homeowner policies covering just the actual cash value of a roof rather than its full replacement cost. Some industry watchers have said the combination of the state’s full-replacement requirement and aggressive solicitation by roofing contractors have caused roof losses in the state to skyrocket. (INSURANCE JOURNAL, STATE NET)

FL Senate Passes Bill Easing Claims History Requirement for P/C Insurers:

The Florida Senate passed a bill (SB 156) that would require property/casualty insurers in the state to provide policyholders three years of claims history instead of five when that information is requested. The measure now goes to the House. (INSURANCE JOURNAL, STATE NET)

-- Compiled by KOREY CLARK