| 1 | Representative(s) Sorensen offered the following: |
| 2 |
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| 3 | Amendment to Amendment (074037) |
| 4 | Remove line(s) 2282-2306 and insert: |
| 5 | 4.a. For the purposes of establishing a pilot program to |
| 6 | evaluate issues relating to the availability and affordability |
| 7 | of insurance in an area where historically there has been little |
| 8 | market competition, the provisions of subparagraph 2. do not |
| 9 | apply to coverage provided by the corporation in Monroe County |
| 10 | if the office determines that a reasonable degree of competition |
| 11 | does not exist for personal lines residential policies. The |
| 12 | provisions of subparagraph 3. do not apply to coverage provided |
| 13 | by the corporation in Monroe County if the office determines |
| 14 | that a reasonable degree of competition does not exist for |
| 15 | personal lines residential policies in the area of that county |
| 16 | which is eligible for wind-only coverage. In this county, the |
| 17 | rates for personal lines residential coverage shall be |
| 18 | actuarially sound and not excessive, inadequate, or unfairly |
| 19 | discriminatory and are subject to the other provisions of the |
| 20 | paragraph and s. 627.062. The commission shall adopt rules |
| 21 | establishing the criteria for determining whether a reasonable |
| 22 | degree of competition exists for personal lines residential |
| 23 | policies in Monroe County. |
| 24 | b. Pursuant to a report by March 1, 2006, the office shall |
| 25 | submit a report to the Legislature providing an evaluation of |
| 26 | the implementation of the pilot program affecting Monroe County |
| 27 | and indicating that there has historically been a lack of a |
| 28 | reasonable degree of competition in Monroe County, the pilot |
| 29 | program shall continue further review and consideration to |
| 30 | determine what impact new rates submitted without consideration |
| 31 | of subparagraphs 2. and 3. will have on the citizens of Monroe |
| 32 | County and any possible adverse economic consequences that may |
| 33 | result from new rates filed, as follows: |
| 34 | (I) The office shall order the corporation to charge only |
| 35 | approved rates in effect for Monroe County prior to the |
| 36 | implementation of this pilot program. |
| 37 | (II) The office shall hold one or more public hearings, |
| 38 | with at least 30 days' advance notice to interested persons, in |
| 39 | Monroe County prior to the approval or implementation of a rate |
| 40 | filing which proposes rates that exceed rates that were in |
| 41 | effect for Monroe County prior to implementation of the pilot |
| 42 | program. |
| 43 | (III) The office shall make available for public |
| 44 | inspection 30 days prior to such hearings the office's written |
| 45 | actuarial analysis if such analysis differs materially from that |
| 46 | submitted by the corporation in support of the new rates filed. |
| 47 | The office and the corporation shall also provide actuaries and |
| 48 | qualified experts in attendance at such hearings to answer |
| 49 | questions from actuaries or other qualified experts representing |
| 50 | Monroe County or the public concerning the new rates filed. |
| 51 | Additionally, the office may provide for a technical hearing at |
| 52 | which only actuaries and qualified experts representing the |
| 53 | office, the corporation, Monroe County, or the public may |
| 54 | testify. |
| 55 | (IV) Notwithstanding any other provision of law, if the |
| 56 | office determines that: |
| 57 | (A) Rates charged on a use and file basis prior to the |
| 58 | effective date of sub-sub-subparagraph (I) were excessive, the |
| 59 | office shall order the portion of the rate above that which was |
| 60 | actuarially justified to be returned to such policyholder in the |
| 61 | form of a credit or refund. |
| 62 | (B) Proposed rates may cause economic hardship to the |
| 63 | citizens of Monroe County, the office may require any |
| 64 | actuarially justified rate increase to be phased in over a |
| 65 | period of 3 years. |