Senate Bill sb2650

    Florida Senate - 2007                                  SB 2650

    By Senator Deutch





    30-1231-07                                          See HB 949

  1                      A bill to be entitled

  2         An act relating to property insurance;

  3         authorizing the State Board of Administration

  4         to sell reinsurance to private insurance

  5         companies taking insurance policies from

  6         Citizens Property Insurance Corporation under

  7         certain circumstances; providing for a discount

  8         to policyholders of Citizens Property Insurance

  9         Corporation; authorizing the State Board of

10         Administration to offer discounted reinsurance

11         rates to private insurance companies under

12         certain circumstances; authorizing the State

13         Board of Administration to determine the number

14         of policies taken from Citizens Property

15         Insurance Corporation to get discounted

16         reinsurance; providing requirements for private

17         insurance companies to get a discounted

18         reinsurance rate; providing an effective date.

19  

20         WHEREAS, in the 2007A Special Session, the Legislature

21  enacted HB 1A, which will result in only modest rate

22  reductions for Citizens Property Insurance Corporation's

23  customers on a short-term, nonpermanent basis, and the

24  corporation was not relieved of its overly large population,

25  and

26         WHEREAS, more reforms must be enacted using market

27  forces by providing incentives to private carriers to offer

28  affordable insurance to the corporation's customers in return

29  for inexpensive reinsurance from the state, so that the

30  corporation would return to being an insurance company of last

31  resort, NOW, THEREFORE,

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                  SB 2650
    30-1231-07                                          See HB 949




 1  Be It Enacted by the Legislature of the State of Florida:

 2  

 3         Section 1.  (1)  The State Board of Administration may

 4  sell reinsurance below the $6 billion retention level in the

 5  Florida Hurricane Catastrophe Fund within the range of 30 to

 6  60 percent online to private insurance companies that agree to

 7  take out of Citizens Property Insurance Corporation a

 8  specified number of individual policies held by Citizens

 9  Property Insurance Corporation on a geographically diverse

10  basis.

11         (2)  Policyholders of Citizens Property Insurance

12  Corporation must receive a discount no less than a rate

13  specified by the State Board of Administration, which must be

14  no less than 10 percent.

15         (3)  The State Board of Administration may offer

16  discounted reinsurance rates to private insurance companies

17  through offers to negotiate via auction, individual

18  negotiation, or any method designed to achieve the best

19  discounted rate for policyholders of Citizens Property

20  Insurance Corporation.

21         (4)  The State Board of Administration may determine

22  how many policies a private company must assume from Citizens

23  Property Insurance Corporation in order to purchase

24  reinsurance from the state at the discounted rate.

25         (5)  Private insurance companies must assume 100

26  percent of each policy taken from Citizens Property Insurance

27  Corporation in exchange for the discounted reinsurance rate.

28         Section 2.  This act shall take effect upon becoming a

29  law.

30  

31  

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CODING: Words stricken are deletions; words underlined are additions.