Florida Senate - 2014                        COMMITTEE AMENDMENT
       Bill No. SPB 7062
       
       
       
       
       
       
                                Ì364132vÎ364132                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: FAV            .                                
                  03/11/2014           .                                
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       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 90 - 93
    4  and insert:
    5         Section 2. Paragraphs (a), (b), and (hh) 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
   18  public 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 on 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 government entity to have the
   41  maximum financial resources to pay claims following a
   42  catastrophic hurricane, it is further the intent of the
   43  Legislature that the corporation continue to be an integral part
   44  of the state, and that the income of the corporation be exempt
   45  from 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. With respect to coverage for personal lines residential
   69  structures:
   70         a. Effective January 1, 2014, a structure that has a
   71  dwelling replacement cost of $1 million or more, or a single
   72  condominium unit that has a combined dwelling and contents
   73  replacement cost of $1 million or more is not eligible for
   74  coverage by the corporation. Such dwellings insured by the
   75  corporation on December 31, 2013, may continue to be covered by
   76  the corporation until the end of the policy term. The office
   77  shall approve the method used by the corporation for valuing the
   78  dwelling replacement costs under cost for the purposes of this
   79  subparagraph. If a policyholder is insured by the corporation
   80  before being determined to be ineligible pursuant to this
   81  subparagraph and such policyholder files a lawsuit challenging
   82  the determination, the policyholder may remain insured by the
   83  corporation until the conclusion of the litigation.
   84         b. Effective January 1, 2015, a structure that has a
   85  dwelling replacement cost of $900,000 or more, or a single
   86  condominium unit that has a combined dwelling and contents
   87  replacement cost of $900,000 or more, is not eligible for
   88  coverage by the corporation. Such dwellings insured by the
   89  corporation on December 31, 2014, may continue to be covered by
   90  the corporation only until the end of the policy term.
   91         c. Effective January 1, 2016, a structure that has a
   92  dwelling replacement cost of $800,000 or more, or a single
   93  condominium unit that has a combined dwelling and contents
   94  replacement cost of $800,000 or more, is not eligible for
   95  coverage by the corporation. Such dwellings insured by the
   96  corporation on December 31, 2015, may continue to be covered by
   97  the corporation until the end of the policy term.
   98         d. Effective January 1, 2017, a structure that has a
   99  dwelling replacement cost of $700,000 or more, or a single
  100  condominium unit that has a combined dwelling and contents
  101  replacement cost of $700,000 or more, is not eligible for
  102  coverage by the corporation. Such dwellings insured by the
  103  corporation on December 31, 2016, may continue to be covered by
  104  the corporation until the end of the policy term.
  105  
  106  The requirements of sub-subparagraphs b.-d. do not apply in
  107  counties where the office determines there is not a reasonable
  108  degree of competition. In such counties a personal lines
  109  residential structure that has a dwelling replacement cost of
  110  less than $1 million, or a single condominium unit that has a
  111  combined dwelling and contents replacement cost of less than $1
  112  million, is eligible for coverage by the corporation.
  113         4. It is the intent of the Legislature that policyholders,
  114  applicants, and agents of the corporation receive service and
  115  treatment of the highest possible level but never less than that
  116  generally provided in the voluntary market. It is also intended
  117  that the corporation be held to service standards no less than
  118  those applied to insurers in the voluntary market by the office
  119  with respect to responsiveness, timeliness, customer courtesy,
  120  and overall dealings with policyholders, applicants, or agents
  121  of the corporation.
  122         5.a. Effective January 1, 2009, a personal lines
  123  residential structure that is located in the “wind-borne debris
  124  region,” as defined in s. 1609.2, International Building Code
  125  (2006), and that has an insured value on the structure of
  126  $750,000 or more is not eligible for coverage by the corporation
  127  unless the structure has opening protections as required under
  128  the Florida Building Code for a newly constructed residential
  129  structure in that area. A residential structure is deemed to
  130  comply with this subparagraph if it has shutters or opening
  131  protections on all openings and if such opening protections
  132  complied with the Florida Building Code at the time they were
  133  installed.
  134         b. Any major structure as defined in s. 161.54(6)(a) for
  135  which a permit is applied on or after July 1, 2014, for new
  136  construction or substantial improvement as defined in s.
  137  161.54(12) is not eligible for coverage by the corporation if
  138  the structure is seaward of the coastal construction control
  139  line established pursuant to s. 161.053 or is within the Coastal
  140  Barrier Resources System as designated by 16 U.S.C. ss. 3501
  141  3510. The restrictions of this subparagraph imposed on major
  142  structures located within the Coastal Barrier Resources System
  143  do not apply in a county where the corporation provides
  144  windstorm coverage on more than 75 percent of personal lines
  145  residential policies.
  146  
  147  ================= T I T L E  A M E N D M E N T ================
  148  And the title is amended as follows:
  149         Delete line 14
  150  and insert:
  151         reference; amending s. 627.351, F.S.; providing
  152         exemptions from the restriction on obtaining coverage
  153         from Citizens Property Insurance Corporation for major
  154         structures under certain conditions; deleting