1 | Representative(s) Hays offered the following: |
2 |
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3 | Amendment (with title amendment) |
4 | On page 38, between lines 10 and 11, |
5 | insert: |
6 | Section 13. (1) The Citizens Property Insurance |
7 | Corporation Mission Review Task Force is created to analyze and |
8 | compile available data and to develop a report setting forth the |
9 | statutory and operational changes needed to return Citizens |
10 | Property Insurance Corporation to its former role as a state- |
11 | created, noncompetitive residual market mechanism that provides |
12 | property insurance coverage to risks that are otherwise entitled |
13 | but unable to obtain such coverage in the private insurance |
14 | market. The task force shall submit a report to the Governor, |
15 | the President of the Senate, and the Speaker of the House of |
16 | Representatives by January 31, 2008. At a minimum, the task |
17 | force shall analyze and evaluate relevant and applicable |
18 | information and data and develop recommendations concerning: |
19 | (a) The nature of Citizens Property Insurance |
20 | Corporation's role in providing property insurance coverage when |
21 | and only if such coverage is not available from private |
22 | insurers. |
23 | (b) The ability of the admitted market to offer policies |
24 | to those consumers formerly insured through Citizens Property |
25 | Insurance Corporation. This consideration shall include, but not |
26 | be limited to, the availability of private market reinsurance |
27 | and coverage through the Florida Hurricane Catastrophe Fund, the |
28 | general adequacy of the admitted market's current rates, and the |
29 | capacity of the industry to offer policies to former Citizens |
30 | Property Insurance Corporation policyholders within existing |
31 | writing ratio limitations. |
32 | (c) The appropriate relationship of rates charged by |
33 | Citizens Property Insurance Corporation to rates charged by |
34 | private insurers, with due consideration for the corporation's |
35 | role as a noncompetitive residual market mechanism. |
36 | (d) The relationships between the exposure of Citizens |
37 | Property Insurance Corporation to catastrophic hurricane losses, |
38 | the corporation's history of purchasing inadequate or no |
39 | reinsurance coverage, and the corporation's lack of adequate |
40 | capital to meet its potential claim obligations without |
41 | incurring large deficits. |
42 | (e) The adverse effects on the people and the economy of |
43 | this state of the large, multiyear deficit assessments by |
44 | Citizens Property Insurance Corporation that may be levied on |
45 | businesses and households in this state, and steps that can be |
46 | taken to reduce those effects. |
47 | (f) The operational implications of the variation in the |
48 | number of policies in force over time in Citizens Property |
49 | Insurance Corporation and the merits of outsourcing some or all |
50 | of its operational responsibilities. |
51 | (g) Changes in the mission and operations of Citizens |
52 | Property Insurance Corporation to reduce or eliminate any |
53 | adverse effect such mission and operations may be having on the |
54 | promotion of sound and economic growth and development of the |
55 | coastal areas of this state. |
56 | (2) The task force shall be composed of 17 members as |
57 | follows: |
58 | (a) Three members appointed by the Speaker of the House of |
59 | Representatives. |
60 | (b) Three members appointed by the President of the |
61 | Senate. |
62 | (c) Three members appointed by the Governor who are not |
63 | employed by or professionally affiliated with an insurance |
64 | company or a subsidiary of an insurance company. |
65 | (d) Eight members appointed as representatives of private |
66 | insurance companies as follows: |
67 | 1. Two members representing two separate insurance |
68 | companies in this state that each provide at least 300,000 |
69 | property insurance policies statewide at the time of the |
70 | creation of the task force. |
71 | 2. Two members representing two separate insurance |
72 | companies in this state that each provide at least 100,000 but |
73 | no more than 299,000 property insurance policies statewide at |
74 | the time of the creation of the task force. |
75 | 3. Two members representing two separate insurance |
76 | companies in this state that each provide fewer than 100,000 |
77 | property insurance policies statewide at the time of the |
78 | creation of the task force. |
79 | 4. Two members appointed by the Chief Financial Officer |
80 | representing insurance agents in this state, at least one of |
81 | whom represents the largest property and casualty insurance |
82 | agent's association in this state. |
83 |
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84 | Of each pair of members appointed under subparagraphs 1., 2., |
85 | and 3., one shall be appointed by the President of the Senate |
86 | and one by the Speaker of the House of Representatives. |
87 | (3) The task force shall conduct research, hold public |
88 | meetings, receive testimony, employ consultants and |
89 | administrative staff, and undertake other activities determined |
90 | by its members to be necessary to complete its responsibilities. |
91 | Citizens Property Insurance Corporation shall have appropriate |
92 | senior staff attend task force meetings, shall respond to |
93 | requests for testimony and data by the task force, and shall |
94 | otherwise cooperate with the task force. |
95 | (4) A member of the task force may not delegate his or her |
96 | attendance or voting power to a designee. |
97 | (5) Members of the task force shall serve without |
98 | compensation but are entitled to receive reimbursement for |
99 | travel and per diem as provided in s. 112.061, Florida Statutes. |
100 | (6) The appointments to the task force must be completed |
101 | within 30 calendar days after the effective date of this act, |
102 | and the task force must hold its initial meeting within 1 month |
103 | after appointment of all members. The task force shall expire no |
104 | later than 60 calendar days after submission of the report |
105 | required in subsection (1). |
106 |
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107 | ========= T I T L E A M E N D M E N T ========= |
108 | On page 2, between lines 27 and 28, |
109 | insert: |
110 | creating the Citizens Property Insurance Corporation Mission |
111 | Review Task Force; providing purposes; requiring a report; |
112 | providing report requirements; providing for appointment of |
113 | members; providing responsibilities; specifying service without |
114 | compensation; providing for reimbursement of per diem and travel |
115 | expenses; providing meeting requirements; requiring the |
116 | corporation to assist the task force; providing for the |
117 | expiration of the task force; |