| 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; |