House panel advances bill ending mandatory arbitration for Citizens policyholders
Rep. Yvette Benarroch
State-run Citizens Property Insurance could no longer require policy holders to submit to binding arbitration to resolve claims disputes under a bill that is headed to the House floor.
With little discussion and no debate, The House Commerce Committee on January 21 approved HB 863 by Republican Rep. Yvette Benarroch, a Marco Island business owner.
Benarroch told the panel that many Citizens policy holders were unaware of the mandate. She assured the panel that under her bill, binding arbitration would remain an option when a customer buys or renews a policy.
“This bill restores choice,” she said. “What changes is that policy holders are no longer placed into a separate system of justice simply because they are insured by a state-created company.”
A Citizens representative who attended the hearing noted his opposition but declined to address the committee.
HB 863 cleared the House Insurance & Banking Subcommittee 17-0 on January 14.
Republican Sen. Jonathan Martin, a Ft. Myers attorney, is sponsoring a companion, SB 1716.
The bill has yet to move. It faces hearings in Senate Banking and Insurance, the Appropriations Committee on Agriculture, Environment, & General Government, and Senate Rules.
