Senate Bill sb0780
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Florida Senate - 2006 SB 780
By Senator Klein
30-348B-06
1 A bill to be entitled
2 An act relating to property and casualty
3 insurance; transferring, renumbering, and
4 amending ss. 350.061, 350.0611, 350.0612,
5 350.0613, and 350.0614, F.S.; authorizing the
6 Public Counsel to represent the general public
7 before the Office of Insurance Regulation;
8 including certain proceedings related to rules
9 and rate filings for residential property
10 insurance; authorizing the Public Counsel to
11 have access to files of the office, to seek
12 review of orders of the office, to issue
13 reports, recommendations, and proposed orders
14 to the office; specifying where the Public
15 Counsel shall maintain his or her office;
16 authorizing the Joint Legislative Auditing
17 Committee to authorize the Public Counsel to
18 employ certain types of employees; requiring
19 the Office of Insurance Regulation to provide
20 copies of certain filings to the Public
21 Counsel; amending s. 112.3145, F.S.; conforming
22 a cross-reference; amending s. 215.559, F.S.;
23 revising the distribution of funds in the
24 Hurricane Loss Mitigation Program; revising
25 provisions relating to a low-interest loan
26 program; amending s. 408.40, F.S.; conforming a
27 cross-reference; amending s. 624.319, F.S.;
28 authorizing the Public Counsel to have access
29 to certain confidential information held by the
30 Department of Financial Services or the Office
31 of Insurance Regulation; amending s. 627.062,
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1 F.S.; abolishing "use and file" rate filings;
2 amending s. 627.062, F.S.; deleting provisions
3 that allow an insurer to require arbitration of
4 a rate filing for property and casualty
5 insurance; amending s. 627.0629, F.S.;
6 requiring underwriting rules for homeowners'
7 insurance to be filed with and approved by the
8 Office of Insurance Regulation; providing for
9 filing and approval provisions; amending s.
10 627.0651, F.S.; abolishing "use and file" rate
11 filings; deleting reference to the filing of
12 specified underwriting rules for homeowners'
13 insurance; amending s. 627.311, F.S.;
14 abolishing "use and file" rate filings;
15 amending s. 627.4025, F.S.; redefining the term
16 "hurricane coverage" to include coverage for
17 damage from wind-driven water; amending s.
18 627.4133, F.S.; prohibiting an insurer from
19 canceling or nonrenewing a residential property
20 insurance policy for certain reasons; amending
21 s. 627.4145, F.S.; increasing the minimum score
22 on the reading ease test for insurance
23 policies; creating s. 627.41494, F.S.;
24 providing for consumer participation in review
25 of insurance rate changes; providing for public
26 inspection of rate filings; providing for
27 adoption of rules by the Financial Services
28 Commission; requiring insurers to pay costs of
29 consumer advocacy groups under certain
30 circumstances; amending s. 627.701, F.S.;
31 revising the hurricane deductibles that
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1 insurers must offer for personal lines
2 residential property insurance policies;
3 creating s. 627.70105, F.S.; requiring payment
4 of living expenses required due to
5 uninhabitability of insured property within a
6 specified time; providing an appropriation;
7 providing effective dates.
8
9 Be It Enacted by the Legislature of the State of Florida:
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11 Section 1. This act may be cited as the "Homeowners'
12 Defense Act."
13 Section 2. Section 350.061, Florida Statutes, is
14 transferred, renumbered as section 11.402, Florida Statutes,
15 and amended to read:
16 11.402 350.061 Public Counsel; appointment; oath;
17 restrictions on Public Counsel and his or her employees.--
18 (1) The Committee on Public Service Commission
19 Oversight shall appoint a Public Counsel by majority vote of
20 the members of the committee to represent the general public
21 of Florida before the Florida Public Service Commission and
22 the Office of Insurance Regulation. The Public Counsel shall
23 be an attorney admitted to practice before the Florida Supreme
24 Court and shall serve at the pleasure of the Committee on
25 Public Service Commission Oversight, subject to biennial
26 reconfirmation by the committee. The Public Counsel shall
27 perform his or her duties independently. Vacancies in the
28 office shall be filled in the same manner as the original
29 appointment.
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1 (2) The Public Counsel shall take and subscribe to the
2 oath of office required of state officers by the State
3 Constitution.
4 (3) No officer or full-time employee of the Public
5 Counsel shall actively engage in any other business or
6 profession; serve as the representative of any political party
7 or on any executive committee or other governing body thereof;
8 serve as an executive, officer, or employee of any political
9 party, committee, organization, or association; receive
10 remuneration for activities on behalf of any candidate for
11 public office; or engage on behalf of any candidate for public
12 office in the solicitation of votes or other activities in
13 behalf of such candidacy. Neither the Public Counsel nor any
14 employee of the Public Counsel shall become a candidate for
15 election to public office unless he or she shall first resign
16 from his or her office or employment.
17 Section 3. Section 350.0611, Florida Statutes, is
18 transferred, renumbered as section 11.403, Florida Statutes,
19 and amended to read:
20 11.403 350.0611 Public Counsel; duties and powers.--It
21 shall be the duty of the Public Counsel to provide legal
22 representation for the people of the state in proceedings
23 before the Public Service Commission and the Office of
24 Insurance Regulation and in proceedings before counties
25 pursuant to s. 367.171(8). The Public Counsel shall have such
26 powers as are necessary to carry out the duties of his or her
27 office, including, but not limited to, the following specific
28 powers:
29 (1) To recommend to the Public Service Commission or
30 the counties, by petition, the commencement of any proceeding
31 or action or to appear, in the name of the state or its
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1 citizens, in any proceeding or action before the commission or
2 the counties.
3 (2) To recommend to the Office of Insurance
4 Regulation, by petition, the commencement of, and to appear in
5 the name of the state or its citizens in, any proceeding or
6 action before the office relating to:
7 (a) Rules governing residential property insurance; or
8 (b) Rate filings for residential property insurance
9 which, pursuant to standards determined by the office, request
10 an average statewide rate increase of 10 percent or greater as
11 compared to the current rates in effect or the rates in effect
12 12 months prior to the proposed effective date.
13
14 The Public Counsel may not stay any final order of the Office
15 of Insurance Regulation.
16 (3) To and urge in any proceeding or action to which
17 he or she is a party therein any position that which he or she
18 deems to be in the public interest, whether consistent or
19 inconsistent with positions previously adopted by the
20 commission, or the counties, or the office, and use utilize
21 therein all forms of discovery available to attorneys in civil
22 actions generally, subject to protective orders of the
23 commission, or the counties, or the office, which shall be
24 reviewable by summary procedure in the circuit courts of this
25 state.;
26 (4)(2) To have access to and use of all files,
27 records, and data of the commission, or the counties, or the
28 office available to any other attorney representing parties in
29 a proceeding before the commission, or the counties, or the
30 office.;
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1 (5)(3) In any proceeding in which he or she has
2 participated as a party, to seek review of any determination,
3 finding, or order of the commission, or the counties, or the
4 office, or of any hearing examiner designated by the
5 commission, or the counties, or the office, in the name of the
6 state or its citizens.;
7 (6)(4) To prepare and issue reports, recommendations,
8 and proposed orders to the commission or office, the Governor,
9 and the Legislature on any matter or subject within the
10 jurisdiction of the commission or office, and to make such
11 recommendations as he or she deems appropriate for legislation
12 relative to commission or office procedures, rules,
13 jurisdiction, personnel, and functions.; and
14 (7)(5) To appear before other state agencies, federal
15 agencies, and state and federal courts in connection with
16 matters under the jurisdiction of the commission or office, in
17 the name of the state or its citizens.
18 Section 4. Section 350.0612, Florida Statutes, is
19 transferred, renumbered as section 11.404, Florida Statutes,
20 and amended to read:
21 11.404 350.0612 Public Counsel; location.--The Public
22 Counsel shall maintain his or her office in Leon County on the
23 premises of the commission or, if suitable space there cannot
24 be provided, at such other place convenient to the offices of
25 the Public Services Commission or the Office of Insurance
26 Regulation commissioners as will enable him or her to carry
27 out expeditiously the duties and functions of his or her
28 office.
29 Section 5. Section 350.0613, Florida Statutes, is
30 transferred, renumbered as section 11.405, Florida Statutes,
31 and amended to read:
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1 11.405 350.0613 Public Counsel; employees; receipt of
2 pleadings.--The Joint Legislative Auditing Committee may
3 authorize the Public Counsel to employ clerical and technical
4 assistants whose qualifications, duties, and responsibilities
5 the committee shall from time to time prescribe. The committee
6 may from time to time authorize retention of the services of
7 additional attorneys, actuaries, economists, or experts to the
8 extent that the best interests of the people of the state will
9 be better served thereby, including the retention of expert
10 witnesses and other technical personnel for participation in
11 contested proceedings before the Public Service Commission or
12 Office of Insurance Regulation. The commission shall furnish
13 the Public Counsel with copies of the initial pleadings in all
14 proceedings before the commission. The office shall furnish
15 the Public Counsel with copies of all filings that relate to
16 the jurisdiction of the Public Counsel pursuant to s.
17 11.403(2)., and If the Public Counsel intervenes as a party in
18 any proceeding he or she shall be served with copies of all
19 subsequent pleadings, exhibits, and prepared testimony, if
20 used. Upon filing notice of intervention, the Public Counsel
21 shall serve all interested parties with copies of such notice
22 and all of his or her subsequent pleadings and exhibits.
23 Section 6. Section 350.0614, Florida Statutes, is
24 transferred, renumbered as section 11.406, Florida Statutes,
25 and amended to read:
26 11.406 350.0614 Public Counsel; compensation and
27 expenses.--
28 (1) The salaries and expenses of the Public Counsel
29 and his or her employees shall be allocated by the committee
30 only from moneys appropriated to the Public Counsel by the
31 Legislature.
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1 (2) The Legislature declares and determines that the
2 Public Counsel is under the legislative branch of government
3 within the intention of the legislation as expressed in
4 chapter 216, and no power shall be in the Executive Office of
5 the Governor or its successor to release or withhold funds
6 appropriated to it, but the same shall be available for
7 expenditure as provided by law and the rules or decisions of
8 the Committee on Public Service Commission Oversight.
9 (3) Neither the Executive Office of the Governor nor
10 the Department of Management Services or its successor shall
11 have power to determine the number, or fix the compensation,
12 of the employees of the Public Counsel or to exercise any
13 manner of control over them.
14 Section 7. Paragraph (b) of subsection (1) of section
15 112.3145, Florida Statutes, is amended to read:
16 112.3145 Disclosure of financial interests and clients
17 represented before agencies.--
18 (1) For purposes of this section, unless the context
19 otherwise requires, the term:
20 (b) "Specified state employee" means:
21 1. Public counsel created by chapter 11 350, an
22 assistant state attorney, an assistant public defender, a
23 full-time state employee who serves as counsel or assistant
24 counsel to any state agency, the Deputy Chief Judge of
25 Compensation Claims, a judge of compensation claims, an
26 administrative law judge, or a hearing officer.
27 2. Any person employed in the office of the Governor
28 or in the office of any member of the Cabinet if that person
29 is exempt from the Career Service System, except persons
30 employed in clerical, secretarial, or similar positions.
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1 3. Each appointed secretary, assistant secretary,
2 deputy secretary, executive director, assistant executive
3 director, or deputy executive director of each state
4 department, commission, board, or council; unless otherwise
5 provided, the division director, assistant division director,
6 deputy director, bureau chief, and assistant bureau chief of
7 any state department or division; or any person having the
8 power normally conferred upon such persons, by whatever title.
9 4. The superintendent or institute director of a state
10 mental health institute established for training and research
11 in the mental health field or the warden or director of any
12 major state institution or facility established for
13 corrections, training, treatment, or rehabilitation.
14 5. Business managers, purchasing agents having the
15 power to make any purchase exceeding the threshold amount
16 provided for in s. 287.017 for CATEGORY ONE, finance and
17 accounting directors, personnel officers, or grants
18 coordinators for any state agency.
19 6. Any person, other than a legislative assistant
20 exempted by the presiding officer of the house by which the
21 legislative assistant is employed, who is employed in the
22 legislative branch of government, except persons employed in
23 maintenance, clerical, secretarial, or similar positions.
24 7. Each employee of the Commission on Ethics.
25 Section 8. Section 215.559, Florida Statutes, is
26 amended to read:
27 215.559 Hurricane Loss Mitigation Program.--
28 (1) There is created a Hurricane Loss Mitigation
29 Program. The Legislature shall annually appropriate $10
30 million of the moneys authorized for appropriation under s.
31 215.555(7)(c) from the Florida Hurricane Catastrophe Fund to
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1 the Department of Community Affairs for the purposes set forth
2 in this section.
3 (2)(a) One Seven million dollars in funds provided in
4 subsection (1) shall be used for programs to improve the wind
5 resistance of residences and mobile homes, including loans,
6 subsidies, grants, demonstration projects, and direct
7 assistance; cooperative programs with local governments and
8 the Federal Government; and other efforts to prevent or reduce
9 losses or reduce the cost of rebuilding after a disaster.
10 (b) Six million dollars in funds provided in
11 subsection (1) shall be used for programs to improve the wind
12 resistance of residences to prevent or reduce losses or reduce
13 the cost of rebuilding after a disaster.
14 (c) The department shall, with the funds authorized in
15 paragraphs (a) and (b), establish a program of low-interest
16 loans to qualified owners of residences and qualified owners
17 of mobile homes. For the purpose of this section, the term
18 "low-interest loan" means any direct loan or loan guarantee
19 issued or backed by such authorized funds to a qualified owner
20 to finance efforts to prevent or reduce losses or reduce the
21 cost of rebuilding after a disaster with a requirement for
22 repayment by the owner. Loans provided under this section
23 shall be made at a rate of up to 2 percent below the qualified
24 loan rate as determined by the department. The terms and
25 conditions of the low-interest loan program, including loan
26 incentive provisions, and the qualifications required of
27 owners of residences and owners of mobile homes shall be
28 determined by the department.
29 (d)(b) Three million dollars in funds provided in
30 subsection (1) shall be used to retrofit existing facilities
31 used as public hurricane shelters. The department must
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1 prioritize the use of these funds for projects included in the
2 September 1, 2000, version of the Shelter Retrofit Report
3 prepared in accordance with s. 252.385(3), and each annual
4 report thereafter. The department must give funding priority
5 to projects in regional planning council regions that have
6 shelter deficits and to projects that maximize use of state
7 funds.
8 (3) By the 2006-2007 fiscal year, the Department of
9 Community Affairs shall develop a low-interest loan program
10 for homeowners and mobile home owners to retrofit their homes
11 with fixtures or apply construction techniques that have been
12 demonstrated to reduce the amount of damage or loss due to a
13 hurricane. Funding for the program shall be used to subsidize
14 or guaranty private-sector loans for this purpose to qualified
15 homeowners by financial institutions chartered by the state or
16 Federal Government. The department may enter into contracts
17 with financial institutions for this purpose. The department
18 shall establish criteria for determining eligibility for the
19 loans and selecting recipients, standards for retrofitting
20 homes or mobile homes, limitations on loan subsidies and loan
21 guaranties, and other terms and conditions of the program,
22 which must be specified in the department's report to the
23 Legislature on January 1, 2006, required by subsection (8).
24 For the 2005-2006 fiscal year, the Department of Community
25 Affairs may use up to $1 million of the funds appropriated
26 pursuant to paragraph (2)(a) to begin the low-interest loan
27 program as a pilot project in one or more counties. The
28 Department of Financial Services, the Office of Financial
29 Regulation, the Florida Housing Finance Corporation, and the
30 Office of Tourism, Trade, and Economic Development shall
31 assist the Department of Community Affairs in establishing the
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1 program and pilot project. The department may use up to 2.5
2 percent of the funds appropriated in any given fiscal year for
3 administering the loan program. The department may adopt rules
4 to implement the program.
5 (3)(4) Forty percent of the total appropriation in
6 paragraph (2)(a) shall be used to inspect and improve
7 tie-downs for mobile homes. Within 30 days after the effective
8 date of that appropriation, the department shall contract with
9 a public higher educational institution in this state which
10 has previous experience in administering the programs set
11 forth in this subsection to serve as the administrative entity
12 and fiscal agent pursuant to s. 216.346 for the purpose of
13 administering the programs set forth in this subsection in
14 accordance with established policy and procedures. The
15 administrative entity working with the advisory council set up
16 under subsection (6) shall develop a list of mobile home parks
17 and counties that may be eligible to participate in the
18 tie-down program.
19 (4)(5) Of moneys provided to the Department of
20 Community Affairs in paragraphs paragraph (2)(a) and (b), 10
21 percent shall be allocated to a Type I Center within the State
22 University System dedicated to hurricane research. The Type I
23 Center shall develop a preliminary work plan approved by the
24 advisory council set forth in subsection (5) (6) to eliminate
25 the state and local barriers to upgrading existing residences,
26 mobile homes, and communities;, research and develop a program
27 for the recycling of existing older mobile homes;, and support
28 programs of research and development relating to hurricane
29 loss reduction devices and techniques for site-built
30 residences. The State University System also shall consult
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1 with the Department of Community Affairs and assist the
2 department with the report required under subsection (7) (8).
3 (5)(6) The Department of Community Affairs shall
4 develop the programs set forth in this section in consultation
5 with an advisory council consisting of a representative
6 designated by the Chief Financial Officer, a representative
7 designated by the Florida Home Builders Association, a
8 representative designated by the Florida Insurance Council, a
9 representative designated by the Federation of Manufactured
10 Home Owners, a representative designated by the Florida
11 Association of Counties, and a representative designated by
12 the Florida Manufactured Housing Association.
13 (6)(7) Moneys provided to the Department of Community
14 Affairs under this section are intended to supplement other
15 funding sources of the Department of Community Affairs and may
16 not supplant other funding sources of the Department of
17 Community Affairs.
18 (7)(8) On January 1st of each year, the Department of
19 Community Affairs shall provide a full report and accounting
20 of activities under this section and an evaluation of such
21 activities to the Speaker of the House of Representatives, the
22 President of the Senate, and the Majority and Minority Leaders
23 of the House of Representatives and the Senate.
24 (8)(9) This section is repealed June 30, 2011.
25 Section 9. Subsection (1) of section 408.40, Florida
26 Statutes, is amended to read:
27 408.40 Public Counsel.--
28 (1) Notwithstanding any other provisions of this
29 chapter, the Public Counsel shall represent the public in any
30 proceeding before the agency or its advisory panels in any
31 administrative hearing conducted pursuant to chapter 120 or
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1 before any other state and federal agencies and courts in any
2 issue before the agency, any court, or any agency. With
3 respect to any such proceeding, the Public Counsel is subject
4 to the provisions of and may use the powers granted to him or
5 her by ss. 11.402-11.406 ss. 350.061-350.0614.
6 Section 10. Paragraph (b) of subsection (3) of section
7 624.319, Florida Statutes, is amended to read:
8 624.319 Examination and investigation reports.--
9 (3)
10 (b) Workpapers and other information held by the
11 department or office, and workpapers and other information
12 received from another governmental entity or the National
13 Association of Insurance Commissioners, for the department's
14 or office's use in the performance of its examination or
15 investigation duties pursuant to this section and ss. 624.316,
16 624.3161, 624.317, and 624.318 are confidential and exempt
17 from the provisions of s. 119.07(1) and s. 24(a), Art. I of
18 the State Constitution. This exemption applies to workpapers
19 and other information held by the department or office before,
20 on, or after the effective date of this exemption. Such
21 confidential and exempt information may be disclosed to
22 another governmental entity, if disclosure is necessary for
23 the receiving entity to perform its duties and
24 responsibilities, and may be disclosed to the National
25 Association of Insurance Commissioners. The Public Counsel
26 shall have access to such confidential and exempt information
27 pertaining to residential property insurance at any time. The
28 receiving governmental entity or the association must maintain
29 the confidential and exempt status of the information. The
30 information made confidential and exempt by this paragraph may
31 be used in a criminal, civil, or administrative proceeding so
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1 long as the confidential and exempt status of such information
2 is maintained. This paragraph is subject to the Open
3 Government Sunset Review Act of 1995 in accordance with s.
4 119.15 and shall stand repealed on October 2, 2007, unless
5 reviewed and saved from repeal through reenactment by the
6 Legislature.
7 Section 11. Subsection (2) of section 627.062, Florida
8 Statutes, is amended to read:
9 627.062 Rate standards.--
10 (2) As to all such classes of insurance:
11 (a) Insurers or rating organizations shall establish
12 and use rates, rating schedules, or rating manuals to allow
13 the insurer a reasonable rate of return on such classes of
14 insurance written in this state. A copy of rates, rating
15 schedules, rating manuals, premium credits or discount
16 schedules, and surcharge schedules, and changes thereto, shall
17 be filed with the office under one of the following
18 procedures:
19 1. If the filing is made at least 90 days before the
20 proposed effective date. and The filing may is not be
21 implemented during the office's review of the filing and any
22 proceeding and judicial review., then Such filing is shall be
23 considered a "file and use" filing. In such case, The office
24 shall finalize its review by issuance of a notice of intent to
25 approve or a notice of intent to disapprove within 90 days
26 after receipt of the filing. The notice of intent to approve
27 and the notice of intent to disapprove constitute agency
28 action for purposes of the Administrative Procedure Act.
29 Requests for supporting information, requests for mathematical
30 or mechanical corrections, or notification to the insurer by
31 the office of its preliminary findings shall not toll the
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1 90-day period during any such proceedings and subsequent
2 judicial review. The rate shall be deemed approved if the
3 office does not issue a notice of intent to approve or a
4 notice of intent to disapprove within 90 days after receipt of
5 the filing.
6 2. If the filing is not made in accordance with the
7 provisions of subparagraph 1., such filing shall be made as
8 soon as practicable, but no later than 30 days after the
9 effective date, and shall be considered a "use and file"
10 filing. An insurer making a "use and file" filing is
11 potentially subject to an order by the office to return to
12 policyholders portions of rates found to be excessive, as
13 provided in paragraph (h).
14 (b) Upon receiving a rate filing, the office shall
15 review the rate filing to determine if a rate is excessive,
16 inadequate, or unfairly discriminatory. In making that
17 determination, the office shall, in accordance with generally
18 accepted and reasonable actuarial techniques, consider the
19 following factors:
20 1. Past and prospective loss experience within and
21 without this state.
22 2. Past and prospective expenses.
23 3. The degree of competition among insurers for the
24 risk insured.
25 4. Investment income reasonably expected by the
26 insurer, consistent with the insurer's investment practices,
27 from investable premiums anticipated in the filing, plus any
28 other expected income from currently invested assets
29 representing the amount expected on unearned premium reserves
30 and loss reserves. The commission may adopt rules utilizing
31 reasonable techniques of actuarial science and economics to
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1 specify the manner in which insurers shall calculate
2 investment income attributable to such classes of insurance
3 written in this state and the manner in which such investment
4 income shall be used in the calculation of insurance rates.
5 Such manner shall contemplate allowances for an underwriting
6 profit factor and full consideration of investment income
7 which produce a reasonable rate of return; however, investment
8 income from invested surplus shall not be considered.
9 5. The reasonableness of the judgment reflected in the
10 filing.
11 6. Dividends, savings, or unabsorbed premium deposits
12 allowed or returned to Florida policyholders, members, or
13 subscribers.
14 7. The adequacy of loss reserves.
15 8. The cost of reinsurance.
16 9. Trend factors, including trends in actual losses
17 per insured unit for the insurer making the filing.
18 10. Conflagration and catastrophe hazards, if
19 applicable.
20 11. A reasonable margin for underwriting profit and
21 contingencies.
22 12. The cost of medical services, if applicable.
23 13. Other relevant factors which impact upon the
24 frequency or severity of claims or upon expenses.
25 (c) In the case of fire insurance rates, consideration
26 shall be given to the availability of water supplies and the
27 experience of the fire insurance business during a period of
28 not less than the most recent 5-year period for which such
29 experience is available.
30 (d) If conflagration or catastrophe hazards are given
31 consideration by an insurer in its rates or rating plan,
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1 including surcharges and discounts, the insurer shall
2 establish a reserve for that portion of the premium allocated
3 to such hazard and shall maintain the premium in a catastrophe
4 reserve. Any removal of such premiums from the reserve for
5 purposes other than paying claims associated with a
6 catastrophe or purchasing reinsurance for catastrophes shall
7 be subject to approval of the office. Any ceding commission
8 received by an insurer purchasing reinsurance for catastrophes
9 shall be placed in the catastrophe reserve.
10 (e) After consideration of the rate factors provided
11 in paragraphs (b), (c), and (d), a rate may be found by the
12 office to be excessive, inadequate, or unfairly discriminatory
13 based upon the following standards:
14 1. Rates shall be deemed excessive if they are likely
15 to produce a profit from Florida business that is unreasonably
16 high in relation to the risk involved in the class of business
17 or if expenses are unreasonably high in relation to services
18 rendered.
19 2. Rates shall be deemed excessive if, among other
20 things, the rate structure established by a stock insurance
21 company provides for replenishment of surpluses from premiums,
22 when the replenishment is attributable to investment losses.
23 3. Rates shall be deemed inadequate if they are
24 clearly insufficient, together with the investment income
25 attributable to them, to sustain projected losses and expenses
26 in the class of business to which they apply.
27 4. A rating plan, including discounts, credits, or
28 surcharges, shall be deemed unfairly discriminatory if it
29 fails to clearly and equitably reflect consideration of the
30 policyholder's participation in a risk management program
31 adopted pursuant to s. 627.0625.
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1 5. A rate shall be deemed inadequate as to the premium
2 charged to a risk or group of risks if discounts or credits
3 are allowed which exceed a reasonable reflection of expense
4 savings and reasonably expected loss experience from the risk
5 or group of risks.
6 6. A rate shall be deemed unfairly discriminatory as
7 to a risk or group of risks if the application of premium
8 discounts, credits, or surcharges among such risks does not
9 bear a reasonable relationship to the expected loss and
10 expense experience among the various risks.
11 (f) In reviewing a rate filing, the office may require
12 the insurer to provide at the insurer's expense all
13 information necessary to evaluate the condition of the company
14 and the reasonableness of the filing according to the criteria
15 enumerated in this section.
16 (g) The office may at any time review a rate, rating
17 schedule, rating manual, or rate change; the pertinent records
18 of the insurer; and market conditions. If the office finds on
19 a preliminary basis that a rate may be excessive, inadequate,
20 or unfairly discriminatory, the office shall initiate
21 proceedings to disapprove the rate and shall so notify the
22 insurer. However, the office may not disapprove as excessive
23 any rate for which it has given final approval or which has
24 been deemed approved for a period of 1 year after the
25 effective date of the filing unless the office finds that a
26 material misrepresentation or material error was made by the
27 insurer or was contained in the filing. Upon being so
28 notified, the insurer or rating organization shall, within 60
29 days, file with the office all information which, in the
30 belief of the insurer or organization, proves the
31 reasonableness, adequacy, and fairness of the rate or rate
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1 change. The office shall issue a notice of intent to approve
2 or a notice of intent to disapprove pursuant to the procedures
3 of paragraph (a) within 90 days after receipt of the insurer's
4 initial response. In such instances and in any administrative
5 proceeding relating to the legality of the rate, the insurer
6 or rating organization shall carry the burden of proof by a
7 preponderance of the evidence to show that the rate is not
8 excessive, inadequate, or unfairly discriminatory. After the
9 office notifies an insurer that a rate may be excessive,
10 inadequate, or unfairly discriminatory, unless the office
11 withdraws the notification, the insurer shall not alter the
12 rate except to conform with the office's notice until the
13 earlier of 120 days after the date the notification was
14 provided or 180 days after the date of the implementation of
15 the rate. The office may, subject to chapter 120, disapprove
16 without the 60-day notification any rate increase filed by an
17 insurer within the prohibited time period or during the time
18 that the legality of the increased rate is being contested.
19 (h) If In the event the office finds that a rate or
20 rate change is excessive, inadequate, or unfairly
21 discriminatory, the office shall issue an order of disapproval
22 specifying that a new rate or rate schedule which responds to
23 the findings of the office be filed by the insurer. The office
24 shall further order, for any "use and file" filing made in
25 accordance with subparagraph (a)2., that premiums charged each
26 policyholder constituting the portion of the rate above that
27 which was actuarially justified be returned to such
28 policyholder in the form of a credit or refund. If the office
29 finds that an insurer's rate or rate change is inadequate, the
30 new rate or rate schedule filed with the office in response to
31 such a finding shall be applicable only to new or renewal
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1 business of the insurer written on or after the effective date
2 of the responsive filing.
3 (i) Except as otherwise specifically provided in this
4 chapter, the office shall not prohibit any insurer, including
5 any residual market plan or joint underwriting association,
6 from paying acquisition costs based on the full amount of
7 premium, as defined in s. 627.403, applicable to any policy,
8 or prohibit any such insurer from including the full amount of
9 acquisition costs in a rate filing.
10
11 The provisions of This subsection does shall not apply to
12 workers' compensation and employer's liability insurance and
13 to motor vehicle insurance.
14 Section 12. Effective upon this act becoming a law,
15 subsection (6) of section 627.062, Florida Statutes, is
16 amended to read:
17 627.062 Rate standards.--
18 (6)(a) After any action with respect to a rate filing
19 that constitutes agency action for purposes of the
20 Administrative Procedure Act, except for a rate filing for
21 medical malpractice, an insurer may, in lieu of demanding a
22 hearing under s. 120.57, require arbitration of the rate
23 filing. Arbitration shall be conducted by a board of
24 arbitrators consisting of an arbitrator selected by the
25 office, an arbitrator selected by the insurer, and an
26 arbitrator selected jointly by the other two arbitrators. Each
27 arbitrator must be certified by the American Arbitration
28 Association. A decision is valid only upon the affirmative
29 vote of at least two of the arbitrators. No arbitrator may be
30 an employee of any insurance regulator or regulatory body or
31 of any insurer, regardless of whether or not the employing
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1 insurer does business in this state. The office and the
2 insurer must treat the decision of the arbitrators as the
3 final approval of a rate filing. Costs of arbitration shall be
4 paid by the insurer.
5 (b) Arbitration under this subsection shall be
6 conducted pursuant to the procedures specified in ss.
7 682.06-682.10. Either party may apply to the circuit court to
8 vacate or modify the decision pursuant to s. 682.13 or s.
9 682.14. The commission shall adopt rules for arbitration under
10 this subsection, which rules may not be inconsistent with the
11 arbitration rules of the American Arbitration Association as
12 of January 1, 1996.
13 (c) Upon initiation of the arbitration process, the
14 insurer waives all rights to challenge the action of the
15 office under the Administrative Procedure Act or any other
16 provision of law; however, such rights are restored to the
17 insurer if the arbitrators fail to render a decision within 90
18 days after initiation of the arbitration process.
19 Section 13. Section 627.0629, Florida Statutes, is
20 amended to read:
21 627.0629 Residential property insurance; rate filings;
22 underwriting rules.--
23 (1) Effective June 1, 2002, a rate filing for
24 residential property insurance must include actuarially
25 reasonable discounts, credits, or other rate differentials, or
26 appropriate reductions in deductibles, for properties on which
27 fixtures or construction techniques demonstrated to reduce the
28 amount of loss in a windstorm have been installed or
29 implemented. The fixtures or construction techniques shall
30 include, but not be limited to, fixtures or construction
31 techniques which enhance roof strength, roof covering
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1 performance, roof-to-wall strength,
2 wall-to-floor-to-foundation strength, opening protection, and
3 window, door, and skylight strength. Credits, discounts, or
4 other rate differentials for fixtures and construction
5 techniques which meet the minimum requirements of the Florida
6 Building Code must be included in the rate filing. All
7 insurance companies must make a rate filing which includes the
8 credits, discounts, or other rate differentials by February
9 28, 2003.
10 (2)(a) A rate filing for residential property
11 insurance made on or before the implementation of paragraph
12 (b) may include rate factors that reflect the manner in which
13 building code enforcement in a particular jurisdiction
14 addresses the risk of wind damage; however, such a rate filing
15 must also provide for variations from such rate factors on an
16 individual basis based on an inspection of a particular
17 structure by a licensed home inspector, which inspection may
18 be at the cost of the insured.
19 (b) A rate filing for residential property insurance
20 made more than 150 days after approval by the office of a
21 building code rating factor plan submitted by a statewide
22 rating organization shall include positive and negative rate
23 factors that reflect the manner in which building code
24 enforcement in a particular jurisdiction addresses risk of
25 wind damage. The rate filing shall include variations from
26 standard rate factors on an individual basis based on
27 inspection of a particular structure by a licensed home
28 inspector. If an inspection is requested by the insured, the
29 insurer may require the insured to pay the reasonable cost of
30 the inspection. This paragraph applies to structures
31
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1 constructed or renovated after the implementation of this
2 paragraph.
3 (c) The premium notice shall specify the amount by
4 which the rate has been adjusted as a result of this
5 subsection and shall also specify the maximum possible
6 positive and negative adjustments that are approved for use by
7 the insurer under this subsection.
8 (3) A rate filing made on or after July 1, 1995, for
9 mobile home owner's insurance must include appropriate
10 discounts, credits, or other rate differentials for mobile
11 homes constructed to comply with American Society of Civil
12 Engineers Standard ANSI/ASCE 7-88, adopted by the United
13 States Department of Housing and Urban Development on July 13,
14 1994, and that also comply with all applicable tie-down
15 requirements provided by state law.
16 (4) The Legislature finds that separate consideration
17 and notice of hurricane insurance premiums will assist
18 consumers by providing greater assurance that hurricane
19 premiums are lawful and by providing more complete information
20 regarding the components of property insurance premiums.
21 Effective January 1, 1997, a rate filing for residential
22 property insurance shall be separated into two components,
23 rates for hurricane coverage and rates for all other
24 coverages. A premium notice reflecting a rate implemented on
25 the basis of such a filing shall separately indicate the
26 premium for hurricane coverage and the premium for all other
27 coverages.
28 (5) In order to provide an appropriate transition
29 period, an insurer may, in its sole discretion, implement an
30 approved rate filing for residential property insurance over a
31 period of years. An insurer electing to phase in its rate
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1 filing must provide an informational notice to the office
2 setting out its schedule for implementation of the phased-in
3 rate filing.
4 (6) An insurer may not write a residential property
5 insurance policy without providing windstorm coverage or
6 hurricane coverage as defined in s. 627.4025. This subsection
7 does not apply with respect to risks located in an area
8 eligible for coverage under the high-risk account of the
9 Citizens Property Insurance Corporation pursuant to s.
10 627.351(6).
11 (7) Any rate filing that is based in whole or part on
12 data from a computer model may not exceed 15 percent unless
13 there is a public hearing.
14 (8) An insurer may implement appropriate discounts or
15 other rate differentials of up to 10 percent of the annual
16 premium to mobile home owners who provide to the insurer
17 evidence of a current inspection of tie-downs for the mobile
18 home, certifying that the tie-downs have been properly
19 installed and are in good condition.
20 (9) EVALUATION OF RESIDENTIAL PROPERTY STRUCTURAL
21 SOUNDNESS.--
22 (a) It is the intent of the Legislature to provide a
23 program whereby homeowners may obtain an evaluation of the
24 wind resistance of their homes with respect to preventing
25 damage from hurricanes, together with a recommendation of
26 reasonable steps that may be taken to upgrade their homes to
27 better withstand hurricane force winds.
28 (b) To the extent that funds are provided for this
29 purpose in the General Appropriations Act, the Legislature
30 hereby authorizes the establishment of a program to be
31
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1 administered by the Citizens Property Insurance Corporation
2 for homeowners insured in the high-risk account.
3 (c) The program shall provide grants to homeowners,
4 for the purpose of providing homeowner applicants with funds
5 to conduct an evaluation of the integrity of their homes with
6 respect to withstanding hurricane force winds, recommendations
7 to retrofit the homes to better withstand damage from such
8 winds, and the estimated cost to make the recommended
9 retrofits.
10 (d) The Department of Community Affairs shall
11 establish by rule standards to govern the quality of the
12 evaluation, the quality of the recommendations for
13 retrofitting, the eligibility of the persons conducting the
14 evaluation, and the selection of applicants under the program.
15 In establishing the rule, the Department of Community Affairs
16 shall consult with the advisory committee to minimize the
17 possibility of fraud or abuse in the evaluation and
18 retrofitting process, and to ensure that funds spent by
19 homeowners acting on the recommendations achieve positive
20 results.
21 (e) The Citizens Property Insurance Corporation shall
22 identify areas of this state with the greatest wind risk to
23 residential properties and recommend annually to the
24 Department of Community Affairs priority target areas for such
25 evaluations and inclusion with the associated residential
26 construction mitigation program.
27 (10) A property insurance rate filing that includes
28 any adjustments related to premiums paid to the Florida
29 Hurricane Catastrophe Fund must include a complete calculation
30 of the insurer's catastrophe load, and the information in the
31
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1 filing may not be limited solely to recovery of moneys paid to
2 the fund.
3 (11) The underwriting rules for homeowners' insurance
4 not contained in rating manuals shall be filed with the
5 office. All underwriting rules for homeowners' insurance must
6 be approved by the office and be reasonable and comply with
7 applicable provisions of law. The filing and form-approval
8 provisions under s. 627.410 apply to the filing and approval
9 of underwriting rules for homeowners' insurance.
10 Section 14. Subsections (1), (11), and (13) of section
11 627.0651, Florida Statutes, are amended to read:
12 627.0651 Making and use of rates for motor vehicle
13 insurance.--
14 (1) Insurers shall establish and use rates, rating
15 schedules, or rating manuals to allow the insurer a reasonable
16 rate of return on motor vehicle insurance written in this
17 state. A copy of rates, rating schedules, and rating manuals,
18 and changes therein, shall be filed with the office under one
19 of the following procedures:
20 (a) If the filing is made at least 60 days before the
21 proposed effective date. and The filing may is not be
22 implemented during the office's review of the filing and any
23 proceeding and judicial review., Such filing is shall be
24 considered a "file and use" filing. In such case, the office
25 shall initiate proceedings to disapprove the rate and so
26 notify the insurer or shall finalize its review within 60 days
27 after receipt of the filing. Notification to the insurer by
28 the office of its preliminary findings shall toll the 60-day
29 period during any such proceedings and subsequent judicial
30 review. The rate shall be deemed approved if the office does
31
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1 not issue notice to the insurer of its preliminary findings
2 within 60 days after the filing.
3 (b) If the filing is not made in accordance with the
4 provisions of paragraph (a), such filing shall be made as soon
5 as practicable, but no later than 30 days after the effective
6 date, and shall be considered a "use and file" filing. An
7 insurer making a "use and file" filing is potentially subject
8 to an order by the office to return to policyholders portions
9 of rates found to be excessive, as provided in subsection
10 (11).
11 (11) If In the event the office finds that a rate or
12 rate change is excessive, inadequate, or unfairly
13 discriminatory, the office shall issue an order of disapproval
14 specifying that a new rate or rate schedule which responds to
15 the findings of the office be filed by the insurer. The office
16 shall further order for any "use and file" filing made in
17 accordance with paragraph (1)(b), that premiums charged each
18 policyholder constituting the portion of the rate above that
19 which was actuarially justified be returned to such
20 policyholder in the form of a credit or refund. If the office
21 finds that an insurer's rate or rate change is inadequate, the
22 new rate or rate schedule filed with the office in response to
23 such a finding shall be applicable only to new or renewal
24 business of the insurer written on or after the effective date
25 of the responsive filing.
26 (13)(a) Underwriting rules not contained in rating
27 manuals shall be filed for private passenger automobile
28 insurance and homeowners' insurance.
29 (b) The submission of rates, rating schedules, and
30 rating manuals to the office by a licensed rating organization
31 of which an insurer is a member or subscriber will be
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1 sufficient compliance with this subsection for any insurer
2 maintaining membership or subscribership in such organization,
3 to the extent that the insurer uses the rates, rating
4 schedules, and rating manuals of such organization. All such
5 information shall be available for public inspection, upon
6 receipt by the office, during usual business hours.
7 Section 15. Paragraph (e) of subsection (5) of section
8 627.311, Florida Statutes, is amended to read:
9 627.311 Joint underwriters and joint reinsurers;
10 public records and public meetings exemptions.--
11 (5)
12 (e) The plan shall establish and use its rates and
13 rating plans, and the plan may establish and use changes in
14 rating plans at any time, but no more frequently than two
15 times per any rating class for any calendar year. By December
16 1, 1993, and December 1 of each year thereafter, except as
17 provided in subparagraph (c)22., the board shall establish and
18 use actuarially sound rates for use by the plan to assure that
19 the plan is self-funding while those rates are in effect. Such
20 rates and rating plans must be filed with the office as
21 provided in s. 627.062(2)(a) within 30 calendar days after
22 their effective dates, and shall be considered a "use and
23 file" filing. Any disapproval by the office must have an
24 effective date that is at least 60 days from the date of
25 disapproval of the rates and rating plan and must have
26 prospective effect only. The plan may not be subject to any
27 order by the office to return to policyholders any portion of
28 the rates disapproved by the office. The office may not
29 disapprove any rates or rating plans unless it demonstrates
30 that such rates and rating plans are excessive, inadequate, or
31 unfairly discriminatory.
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1 Section 16. Paragraph (a) of subsection (2) of section
2 627.4025, Florida Statutes, is amended to read:
3 627.4025 Residential coverage and hurricane coverage
4 defined.--
5 (2) As used in policies providing residential
6 coverage:
7 (a) "Hurricane coverage" is coverage for loss or
8 damage caused by the peril of windstorm during a hurricane.
9 The term includes ensuing damage to the interior of a
10 building, or to property inside a building, caused by rain,
11 snow, sleet, hail, sand, or dust if the direct force of the
12 windstorm first damages the building, causing an opening
13 through which rain, snow, sleet, hail, sand, or dust enters
14 and causes damage. The term also includes coverage for damage
15 to the interior of a building, or to property inside a
16 building, which is caused by wind-driven water entering the
17 building during a hurricane.
18 Section 17. Effective upon this act becoming a law,
19 subsection (7) is added to section 627.4133, Florida Statutes,
20 to read:
21 627.4133 Notice of cancellation, nonrenewal, or
22 renewal premium.--
23 (7) An insurer may not cancel or nonrenew a
24 residential property insurance policy for any reason other
25 than a fraudulent act by the policyholder with respect to that
26 or any other policy, for a policyholder who has been
27 continuously insured with that insurer or with an insurer
28 within the same insurance group for 3 years or longer.
29 Section 18. Subsection (1) of section 627.4145,
30 Florida Statutes, is amended to read:
31 627.4145 Readable language in insurance policies.--
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1 (1) Every policy shall be readable as required by this
2 section. For the purposes of this section, the term "policy"
3 means a policy form or endorsement. A policy is deemed
4 readable if:
5 (a) The text achieves a minimum score of 50 45 on the
6 Flesch reading ease test as computed in subsection (5) or an
7 equivalent score on any other test comparable in result and
8 approved by the office;
9 (b) It uses layout and spacing which separate the
10 paragraphs from each other and from the border of the paper;
11 (c) It has section titles that are captioned in
12 boldfaced type or that otherwise stand out significantly from
13 the text;
14 (d) It avoids the use of unnecessarily long,
15 complicated, or obscure words, sentences, paragraphs, or
16 constructions;
17 (e) The style, arrangement, and overall appearance of
18 the policy give no undue prominence to any portion of the text
19 of the policy or to any endorsements or riders; and
20 (f) It contains a table of contents or an index of the
21 principal sections of the policy, if the policy has more than
22 3,000 words or more than three pages.
23 Section 19. Section 627.41494, Florida Statutes, is
24 created to read:
25 627.41494 Consumer participation in rate review.--
26 (1) Upon the filing of a proposed rate change for
27 residential property insurance by an insurer under s. 627.062,
28 which filing would, pursuant to standards determined by the
29 office, result in an average statewide increase of 10 percent
30 or more as compared to the rates in effect at that time or the
31 rates in effect 12 months prior to the proposed effective
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1 date, the insurer shall mail notice of such filing to each of
2 its policyholders or members.
3 (2) The rate filing shall be available for public
4 inspection. If any policyholder or member requests the office
5 within 30 days after the mailing of such notification pursuant
6 to subsection (1) to hold a hearing, the office shall hold a
7 hearing within 30 days after such request. Any consumer
8 advocacy group or the Public Counsel under chapter 11 may
9 participate in such hearing, and the commission may adopt
10 rules governing such participation.
11 (3) For purposes of this section, the term "consumer
12 advocacy group" means an organization with a membership of at
13 least 1,000 individuals, the purpose of which is to represent
14 the best interests of the public in matters relating, but not
15 limited, to insurance rate filings before the office. The
16 consumer advocacy group may:
17 (a) Appear in any proceeding or action before the
18 department or office or appear in any proceeding before the
19 Division of Administrative Hearings relating to rate filings
20 subject to subsection (1).
21 (b) Have access to and use of all files, records, and
22 data of the office relating to such rate filings.
23 (c) Examine such rate and form filings submitted to
24 the office.
25 (d) Recommend to the office any position deemed by the
26 group to be in the best interest of the public in matters
27 relating to such rate filings.
28
29 This subsection does not limit the rights of a consumer
30 advocacy group to have access to records of the office as
31 otherwise available pursuant to law.
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1 (4) The office shall order the insurer to pay the
2 reasonable costs of the consumer advocacy group if the office
3 determines that the consumer advocacy group made a relevant
4 and substantial contribution to the final order on the rate
5 filing. In determining the reasonable costs the insurer shall
6 pay the consumer advocacy group, the office shall consider,
7 among other things, the time, labor, fees, and expenses
8 incurred by the advocacy group.
9 Section 20. Effective upon this act becoming a law,
10 subsection (3) of section 627.701, Florida Statutes, is
11 amended to read:
12 627.701 Liability of insureds; coinsurance;
13 deductibles.--
14 (3)(a) A policy of residential property insurance
15 shall include a deductible amount applicable to hurricane
16 losses no lower than $500 and no higher than 5 2 percent of
17 the policy dwelling limits with respect to personal lines
18 residential risks, and no higher than 3 percent of the policy
19 limits with respect to commercial lines residential risks;
20 however, if a risk was covered on August 24, 1992, under a
21 policy having a higher deductible than the deductibles allowed
22 by this paragraph, a policy covering such risk may include a
23 deductible no higher than the deductible in effect on August
24 24, 1992. Notwithstanding the other provisions of this
25 paragraph, a personal lines residential policy covering a risk
26 valued at $50,000 or less may include a deductible amount
27 attributable to hurricane losses no lower than $250, and a
28 personal lines residential policy covering a risk valued at
29 $100,000 or more may include a deductible amount attributable
30 to hurricane losses no higher than 10 percent of the policy
31 limits unless subject to a higher deductible on August 24,
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1 1992; however, no maximum deductible is required with respect
2 to a personal lines residential policy covering a risk valued
3 at more than $500,000. An insurer may require a higher
4 deductible, provided such deductible is the same as or similar
5 to a deductible program lawfully in effect on June 14, 1995.
6 In addition to the deductible amounts authorized by this
7 paragraph, an insurer may also offer policies with a copayment
8 provision under which, after exhaustion of the deductible, the
9 policyholder is responsible for 10 percent of the next $10,000
10 of insured hurricane losses.
11 (b)1. Except as otherwise provided in this paragraph,
12 prior to issuing a personal lines residential property
13 insurance policy on or after March January 1, 2006, or prior
14 to the first renewal of a residential property insurance
15 policy on or after March January 1, 2006, the insurer must
16 offer alternative deductible amounts applicable to hurricane
17 losses equal to $500, 1 percent, 2 percent, 5 percent, and 10
18 percent of the policy dwelling limits, but it need not offer a
19 deductible expressed as a percentage when that unless the
20 specific percentage deductible is less than $500. The written
21 notice of the offer shall specify the hurricane or wind
22 deductible to be applied in the event that the applicant or
23 policyholder fails to affirmatively choose a hurricane
24 deductible. The insurer must provide such policyholder with
25 notice of the availability of the deductible amounts specified
26 in this paragraph in a form approved by the office in
27 conjunction with each renewal of the policy. The failure to
28 provide such notice constitutes a violation of this code but
29 does not affect the coverage provided under the policy.
30 2. This paragraph does not apply with respect to a
31 deductible program lawfully in effect on June 14, 1995, or to
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1 any similar deductible program, if the deductible program
2 requires a minimum deductible amount of no less than 1 2
3 percent of the policy limits.
4 3. With respect to a policy covering a risk with
5 dwelling limits of at least $100,000, but less than $250,000,
6 the insurer may, in lieu of offering a policy with a $500
7 hurricane or wind deductible as required by subparagraph 1.,
8 offer a policy that the insurer guarantees it will not
9 nonrenew for reasons of reducing hurricane loss for one
10 renewal period and that contains up to a 2 percent hurricane
11 or wind deductible as required by subparagraph 1.
12 3. 4. With respect to a policy covering a risk with
13 dwelling limits of $250,000 or more, the insurer need not
14 offer the $500 hurricane deductible as required by
15 subparagraph 1., but must, except as otherwise provided in
16 this subsection, offer the other hurricane deductibles as
17 required by subparagraph 1.
18 Section 21. Section 627.70105, Florida Statutes, is
19 created to read:
20 627.70105 Hurricane coverage; additional
21 requirement.--Each insurance contract providing hurricane
22 coverage must include a provision that, if insured residential
23 property becomes uninhabitable due to damage from a hurricane
24 and the insurer is liable for living expenses of the insured
25 while the covered property remains uninhabitable, initial
26 living expense payments must be delivered to the insured no
27 later than 48 hours after a claim therefor is made with the
28 insurer.
29 Section 22. The sum of $50 million is appropriated for
30 fiscal year 2006-2007 on a nonrecurring basis from the General
31 Revenue Fund to the Department of Community Affairs in the
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1 special appropriation category "Residential Hurricane
2 Mitigation Low-Interest Loan Program" for low-interest loans
3 to qualified owners of residences and qualified owners of
4 mobile homes to finance efforts to improve the wind resistance
5 of residences to prevent or reduce losses or reduce the cost
6 of rebuilding after a disaster with a requirement of repayment
7 by the owner, as provided in section 7. These funds shall be
8 subject to the release provisions of chapter 216, Florida
9 Statutes. Up to 0.5 percent of this appropriation may be used
10 by the department for administration of the loan program.
11 Section 23. Except as otherwise expressly provided in
12 this act, this act shall take effect July 1, 2006.
13
14 *****************************************
15 SENATE SUMMARY
16 Authorizes the Public Counsel to represent the general
public before the Office of Insurance Regulation and
17 prescribes the Public Counsel's access to certain
records. Provides an additional breakdown for the
18 distribution of Hurricane Loss Mitigation Fund moneys
between programs relating to mobile homes and programs
19 relating to residences and creates a program of
low-interest loans to further the purposes of the fund.
20 Deletes provisions relating to arbitration of rate
filings. Includes coverage for damage from wind-driven
21 water in the definition of "hurricane coverage."
Prohibits cancellation or nonrenewal of residential
22 property insurance by an insurer who has insured the
property for 3 years or longer for any reason except a
23 fraudulent act by the policyholder. Providing for notice
to policyholders of rate increases that exceed a
24 threshold amount. Provides for participation by consumer
advocacy groups, as defined, in the ratemaking process.
25 Revises guidelines relating to deductibles. Requires the
Office of Insurance Regulation to approve underwriting
26 rules for homeowners' insurance not contained in rating
manuals. Requires timely payment of living expenses
27 necessitated by uninhabitability of damaged residential
property. Provides an appropriation to the Department of
28 Community Affairs for a residential hurricane mitigation
low-interest loan program and deletes a low-interest loan
29 program for retrofitting homes and mobile homes for
hurricane damage mitigation. Abolishes "use and file"
30 rate filings.
31
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