Bill Text: FL S1476 | 2019 | Regular Session | Introduced

Florida Senate Bill 1476 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Citizens Property Insurance Corporation

Spectrum: Bipartisan Bill

Status: (Failed) 2019-05-03 - Died in Messages [S1476 Detail]

Download: Florida-2019-S1476-Introduced.html

       Florida Senate - 2019                                    SB 1476
       
       
        
       By Senator Flores
       
       
       
       
       
       39-01369C-19                                          20191476__
    1                        A bill to be entitled                      
    2         An act relating to the Citizens Property Insurance
    3         Corporation; amending s. 627.351, F.S.; specifying a
    4         limit on annual rate increases, except for certain
    5         coverage, in policies issued by the corporation to
    6         insureds located in certain counties; providing for
    7         future expiration; providing an effective date.
    8          
    9  Be It Enacted by the Legislature of the State of Florida:
   10  
   11         Section 1. Paragraph (n) of subsection (6) of section
   12  627.351, Florida Statutes, is amended to read:
   13         627.351 Insurance risk apportionment plans.—
   14         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
   15         (n)1. Rates for coverage provided by the corporation must
   16  be actuarially sound and subject to s. 627.062, except as
   17  otherwise provided in this paragraph. The corporation shall file
   18  its recommended rates with the office at least annually. The
   19  corporation shall provide any additional information regarding
   20  the rates which the office requires. The office shall consider
   21  the recommendations of the board and issue a final order
   22  establishing the rates for the corporation within 45 days after
   23  the recommended rates are filed. The corporation may not pursue
   24  an administrative challenge or judicial review of the final
   25  order of the office.
   26         2. In addition to the rates otherwise determined pursuant
   27  to this paragraph, the corporation shall impose and collect an
   28  amount equal to the premium tax provided in s. 624.509 to
   29  augment the financial resources of the corporation.
   30         3. After the public hurricane loss-projection model under
   31  s. 627.06281 has been found to be accurate and reliable by the
   32  Florida Commission on Hurricane Loss Projection Methodology, the
   33  model shall be considered when establishing the windstorm
   34  portion of the corporation’s rates. The corporation may use the
   35  public model results in combination with the results of private
   36  models to calculate rates for the windstorm portion of the
   37  corporation’s rates. This subparagraph does not require or allow
   38  the corporation to adopt rates lower than the rates otherwise
   39  required or allowed by this paragraph.
   40         4. The rate filings for the corporation which were approved
   41  by the office and took effect January 1, 2007, are rescinded,
   42  except for those rates that were lowered. As soon as possible,
   43  the corporation shall begin using the lower rates that were in
   44  effect on December 31, 2006, and provide refunds to
   45  policyholders who paid higher rates as a result of that rate
   46  filing. The rates in effect on December 31, 2006, remain in
   47  effect for the 2007 and 2008 calendar years except for any rate
   48  change that results in a lower rate. The next rate change that
   49  may increase rates shall take effect pursuant to a new rate
   50  filing recommended by the corporation and established by the
   51  office, subject to this paragraph.
   52         5. Beginning on July 15, 2009, and annually thereafter, the
   53  corporation must make a recommended actuarially sound rate
   54  filing for each personal and commercial line of business it
   55  writes, to be effective no earlier than January 1, 2010.
   56         6.a. Beginning on or after January 1, 2010, and
   57  notwithstanding the board’s recommended rates and the office’s
   58  final order regarding the corporation’s filed rates under
   59  subparagraph 1., the corporation shall annually implement a rate
   60  increase that which, except for sinkhole coverage, does not
   61  exceed 10 percent for any single policy issued by the
   62  corporation, excluding coverage changes and surcharges.
   63         b. Beginning January 1, 2020, and notwithstanding the
   64  board’s recommended rates and the office’s final order regarding
   65  the corporation’s filed rates under subparagraph 1., the
   66  corporation shall annually implement a rate increase that,
   67  except for sinkhole coverage, does not exceed 10 percent for any
   68  single policy issued by the corporation and does not exceed 5
   69  percent for any single policy issued by the corporation to an
   70  insured located in a county where the office has determined
   71  there is not a reasonable degree of competition and that is
   72  designated as an area of critical state concern, excluding
   73  coverage changes and surcharges. This sub-subparagraph expires
   74  January 1, 2024.
   75         7. The corporation may also implement an increase to
   76  reflect the effect on the corporation of the cash buildup factor
   77  pursuant to s. 215.555(5)(b).
   78         8. The corporation’s implementation of rates as prescribed
   79  in subparagraph 6. shall cease for any line of business written
   80  by the corporation upon the corporation’s implementation of
   81  actuarially sound rates. Thereafter, the corporation shall
   82  annually make a recommended actuarially sound rate filing for
   83  each commercial and personal line of business the corporation
   84  writes.
   85         Section 2. This act shall take effect July 1, 2019.