Florida Senate - 2012                        COMMITTEE AMENDMENT
       Bill No. SB 578
       
       
       
       
       
       
                                Barcode 777490                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                   Comm: WD            .                                
                  12/07/2011           .                                
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       The Committee on Banking and Insurance (Bennett) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 25 - 28
    4  and insert:
    5         Section 1. Paragraphs (a), (q), and (x) of subsection (6)
    6  of section 627.351, Florida Statutes, are amended to read:
    7         627.351 Insurance risk apportionment plans.—
    8         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
    9         (a) The public purpose of this subsection is to ensure that
   10  there is an orderly market for property insurance for residents
   11  and businesses of this state.
   12         1. The Legislature finds that private insurers are
   13  unwilling or unable to provide affordable property insurance
   14  coverage in this state to the extent sought and needed. The
   15  absence of affordable property insurance threatens the public
   16  health, safety, and welfare and likewise threatens the economic
   17  health of the state. The state therefore has a compelling public
   18  interest and a public purpose to assist in assuring that
   19  property in the state is insured and that it is insured at
   20  affordable rates so as to facilitate the remediation,
   21  reconstruction, and replacement of damaged or destroyed property
   22  in order to reduce or avoid the negative effects otherwise
   23  resulting to the public health, safety, and welfare, to the
   24  economy of the state, and to the revenues of the state and local
   25  governments which are needed to provide for the public welfare.
   26  It is necessary, therefore, to provide affordable property
   27  insurance to applicants who are in good faith entitled to
   28  procure insurance through the voluntary market but are unable to
   29  do so. The Legislature intends, therefore, that affordable
   30  property insurance be provided and that it continue to be
   31  provided, as long as necessary, through Citizens Property
   32  Insurance Corporation, a government entity that is an integral
   33  part of the state, and that is not a private insurance company.
   34  To that end, the corporation shall strive to increase the
   35  availability of affordable property insurance in this state,
   36  while achieving efficiencies and economies, and while providing
   37  service to policyholders, applicants, and agents which is no
   38  less than the quality generally provided in the voluntary
   39  market, for the achievement of the foregoing public purposes.
   40  Because it is essential for this governmental government entity
   41  to have the maximum financial resources to pay claims following
   42  a catastrophic hurricane, it is the intent of the Legislature
   43  that the corporation continue to be an integral part of the
   44  state and that the income of the corporation be exempt from
   45  federal income taxation and that interest on the debt
   46  obligations issued by the corporation be exempt from federal
   47  income taxation.
   48         2. The Residential Property and Casualty Joint Underwriting
   49  Association originally created by this statute shall be known as
   50  the Citizens Property Insurance Corporation. The corporation
   51  shall provide insurance for residential and commercial property,
   52  for applicants who are entitled, but, in good faith, are unable
   53  to procure insurance through the voluntary market. The
   54  corporation shall operate pursuant to a plan of operation
   55  approved by order of the Financial Services Commission. The plan
   56  is subject to continuous review by the commission. The
   57  commission may, by order, withdraw approval of all or part of a
   58  plan if the commission determines that conditions have changed
   59  since approval was granted and that the purposes of the plan
   60  require changes in the plan. For the purposes of this
   61  subsection, residential coverage includes both personal lines
   62  residential coverage, which consists of the type of coverage
   63  provided by homeowner’s, mobile home owner’s, dwelling,
   64  tenant’s, condominium unit owner’s, and similar policies; and
   65  commercial lines residential coverage, which consists of the
   66  type of coverage provided by condominium association, apartment
   67  building, and similar policies.
   68         3. Effective January 1, 2009, a personal lines residential
   69  structure that has a dwelling replacement cost of $2 million or
   70  more, or a single condominium unit that has a combined dwelling
   71  and contents replacement cost of $2 million or more is not
   72  eligible for coverage by the corporation. Such dwellings insured
   73  by the corporation on December 31, 2008, may continue to be
   74  covered by the corporation until the end of the policy term.
   75  However, such dwellings may reapply and obtain coverage if the
   76  property owner provides the corporation with a sworn affidavit
   77  from one or more insurance agents, on a form provided by the
   78  corporation, stating that the agents have made their best
   79  efforts to obtain coverage and that the property has been
   80  rejected for coverage by at least one authorized insurer and at
   81  least three surplus lines insurers. If such conditions are met,
   82  the dwelling may be insured by the corporation for up to 3
   83  years, after which time the dwelling is ineligible for coverage.
   84  The office shall approve the method used by the corporation for
   85  valuing the dwelling replacement cost for the purposes of this
   86  subparagraph. If a policyholder is insured by the corporation
   87  before prior to being determined to be ineligible pursuant to
   88  this subparagraph and such policyholder files a lawsuit
   89  challenging the determination, the policyholder may remain
   90  insured by the corporation until the conclusion of the
   91  litigation.
   92         4. It is the intent of the Legislature that policyholders,
   93  applicants, and agents of the corporation receive service and
   94  treatment of the highest possible level but never less than that
   95  generally provided in the voluntary market. It is also intended
   96  that the corporation be held to service standards no less than
   97  those applied to insurers in the voluntary market by the office
   98  with respect to responsiveness, timeliness, customer courtesy,
   99  and overall dealings with policyholders, applicants, or agents
  100  of the corporation.
  101         5. Effective October 1, 2012 January 1, 2009, a personal
  102  lines residential structure that is located in the “wind-borne
  103  debris region,” as defined in s. 1609.2, International Building
  104  Code (2006), and that has an insured value on the structure of
  105  $750,000 or more is not eligible for coverage by the
  106  corporation. However, unless the structure has opening
  107  protections as required under the Florida Building Code for a
  108  newly constructed residential structure in that area, the
  109  corporation may charge a surcharge that it deems appropriate for
  110  such structures, notwithstanding any restrictions on rates
  111  provided in this subsection or in s. 627.062. A residential
  112  structure shall be deemed to comply with this subparagraph if it
  113  has shutters or opening protections on all openings and if such
  114  opening protections complied with the Florida Building Code at
  115  the time they were installed.
  116  6. For any claim filed under a any policy of the corporation, a
  117  public adjuster may not charge, agree to, or accept any
  118  compensation, payment, commission, fee, or other thing of value
  119  greater than 10 percent of the additional amount actually paid
  120  over the amount that was originally offered by the corporation
  121  for any one claim.
  122  
  123  ================= T I T L E  A M E N D M E N T ================
  124         And the title is amended as follows:
  125         Delete lines 2 - 4
  126  and insert:
  127         An act relating to the Citizens Property Insurance
  128         Corporation; amending s. 627.351, F.S.; removing
  129         certain exclusions for residential coverage; directing
  130         the corporation to provide coverage to certain
  131         residential structures but at rates deemed appropriate
  132         by the corporation; providing that eligible surplus
  133         lines