Bill Text: FL S1204 | 2020 | Regular Session | Introduced

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Bill Title: Citizens Property Insurance Corporation

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2020-03-14 - Died in Banking and Insurance [S1204 Detail]

Download: Florida-2020-S1204-Introduced.html

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       Florida Senate - 2020                                    SB 1204
       
       
        
       By Senator Flores
       
       
       
       
       
       39-00729A-20                                          20201204__
    1                        A bill to be entitled                      
    2         An act relating to the Citizens Property Insurance
    3         Corporation; amending s. 627.351, F.S.; revising and
    4         specifying annual rate increase limits for certain
    5         policies issued by the corporation; providing an
    6         effective date.
    7          
    8  Be It Enacted by the Legislature of the State of Florida:
    9  
   10         Section 1. Paragraph (n) of subsection (6) of section
   11  627.351, Florida Statutes, is amended to read:
   12         627.351 Insurance risk apportionment plans.—
   13         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
   14         (n)1. Rates for coverage provided by the corporation must
   15  be actuarially sound and subject to s. 627.062, except as
   16  otherwise provided in this paragraph. The corporation shall file
   17  its recommended rates with the office at least annually. The
   18  corporation shall provide any additional information regarding
   19  the rates which the office requires. The office shall consider
   20  the recommendations of the board and issue a final order
   21  establishing the rates for the corporation within 45 days after
   22  the recommended rates are filed. The corporation may not pursue
   23  an administrative challenge or judicial review of the final
   24  order of the office.
   25         2. In addition to the rates otherwise determined pursuant
   26  to this paragraph, the corporation shall impose and collect an
   27  amount equal to the premium tax provided in s. 624.509 to
   28  augment the financial resources of the corporation.
   29         3. After the public hurricane loss-projection model under
   30  s. 627.06281 has been found to be accurate and reliable by the
   31  Florida Commission on Hurricane Loss Projection Methodology, the
   32  model shall be considered when establishing the windstorm
   33  portion of the corporation’s rates. The corporation may use the
   34  public model results in combination with the results of private
   35  models to calculate rates for the windstorm portion of the
   36  corporation’s rates. This subparagraph does not require or allow
   37  the corporation to adopt rates lower than the rates otherwise
   38  required or allowed by this paragraph.
   39         4. The rate filings for the corporation which were approved
   40  by the office and took effect January 1, 2007, are rescinded,
   41  except for those rates that were lowered. As soon as possible,
   42  the corporation shall begin using the lower rates that were in
   43  effect on December 31, 2006, and provide refunds to
   44  policyholders who paid higher rates as a result of that rate
   45  filing. The rates in effect on December 31, 2006, remain in
   46  effect for the 2007 and 2008 calendar years except for any rate
   47  change that results in a lower rate. The next rate change that
   48  may increase rates shall take effect pursuant to a new rate
   49  filing recommended by the corporation and established by the
   50  office, subject to this paragraph.
   51         5. Beginning on July 15, 2009, and annually thereafter, the
   52  corporation must make a recommended actuarially sound rate
   53  filing for each personal and commercial line of business it
   54  writes, to be effective no earlier than January 1, 2010.
   55         6.a. Beginning on or after January 1, 2010, and
   56  notwithstanding the board’s recommended rates and the office’s
   57  final order regarding the corporation’s filed rates under
   58  subparagraph 1., the corporation shall annually implement a rate
   59  increase which, except for sinkhole coverage, does not exceed 10
   60  percent for any single policy issued by the corporation,
   61  excluding coverage changes and surcharges.
   62         b. Beginning January 1, 2021, and notwithstanding the
   63  board’s recommended rates and the office’s final order regarding
   64  the corporation’s filed rates under subparagraph 1., the
   65  corporation shall annually implement a rate increase that,
   66  except for sinkhole coverage, does not exceed 10 percent for any
   67  single policy issued by the corporation and that does not exceed
   68  5 percent for any single wind-only policy issued by the
   69  corporation to an insured located within a county in which,
   70  during the preceding 15 years, the amount of premiums paid by
   71  all policyholders in the county exceeded the total amount of
   72  claims paid to all policyholders in the county by more than $700
   73  million.
   74         7. The corporation may also implement an increase to
   75  reflect the effect on the corporation of the cash buildup factor
   76  pursuant to s. 215.555(5)(b).
   77         8. The corporation’s implementation of rates as prescribed
   78  in subparagraph 6. shall cease for any line of business written
   79  by the corporation upon the corporation’s implementation of
   80  actuarially sound rates. Thereafter, the corporation shall
   81  annually make a recommended actuarially sound rate filing for
   82  each commercial and personal line of business the corporation
   83  writes.
   84         Section 2. This act shall take effect July 1, 2020.