Florida Senate - 2007                        SENATOR AMENDMENT
    Bill No. CS for CS for SB 2836
                        Barcode 655740
                            CHAMBER ACTION
              Senate                               House
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 3         Floor: WD/2R            .                    
       04/26/2007 03:26 PM         .                    
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11  Senator Posey moved the following amendment:
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13         Senate Amendment (with title amendment) 
14         On page 26, between lines 24 and 25,
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16  insert:  
17         Section 10.  Paragraph (a) of subsection (6) of section
18  627.351, Florida Statutes, as amended by section 21 of chapter
19  2007-1, Laws of Florida, is amended to read:
20         627.351  Insurance risk apportionment plans.--
21         (6)  CITIZENS PROPERTY INSURANCE CORPORATION.--
22         (a)1.  The Legislature finds that actual and threatened
23  catastrophic losses to property in this state from hurricanes
24  have caused insurers to be unwilling or unable to provide
25  property insurance coverage to the extent sought and needed.
26  It is in the public interest and a public purpose to assist in
27  assuring that property in the state is insured so as to
28  facilitate the remediation, reconstruction, and replacement of
29  damaged or destroyed property in order to reduce or avoid the
30  negative effects otherwise resulting to the public health,
31  safety, and welfare; to the economy of the state; and to the
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    6:35 PM   04/25/07                             s2836c2c-24-j04

Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS for CS for SB 2836 Barcode 655740 1 revenues of the state and local governments needed to provide 2 for the public welfare. It is necessary, therefore, to provide 3 property insurance to applicants who are in good faith 4 entitled to procure insurance through the voluntary market but 5 are unable to do so. The Legislature intends by this 6 subsection that property insurance be provided and that it 7 continues, as long as necessary, through an entity organized 8 to achieve efficiencies and economies, while providing service 9 to policyholders, applicants, and agents that is no less than 10 the quality generally provided in the voluntary market, all 11 toward the achievement of the foregoing public purposes. 12 Because it is essential for the corporation to have the 13 maximum financial resources to pay claims following a 14 catastrophic hurricane, it is the intent of the Legislature 15 that the income of the corporation be exempt from federal 16 income taxation and that interest on the debt obligations 17 issued by the corporation be exempt from federal income 18 taxation. 19 2. The Residential Property and Casualty Joint 20 Underwriting Association originally created by this statute 21 shall be known, as of July 1, 2002, as the Citizens Property 22 Insurance Corporation. The corporation shall provide insurance 23 for residential and commercial property, for applicants who 24 are in good faith entitled, but are unable, to procure 25 insurance through the voluntary market. The corporation shall 26 operate pursuant to a plan of operation approved by order of 27 the Financial Services Commission. The plan is subject to 28 continuous review by the commission. The commission may, by 29 order, withdraw approval of all or part of a plan if the 30 commission determines that conditions have changed since 31 approval was granted and that the purposes of the plan require 2 6:35 PM 04/25/07 s2836c2c-24-j04
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS for CS for SB 2836 Barcode 655740 1 changes in the plan. The corporation shall continue to operate 2 pursuant to the plan of operation approved by the Office of 3 Insurance Regulation until October 1, 2006. For the purposes 4 of this subsection, residential coverage includes both 5 personal lines residential coverage, which consists of the 6 type of coverage provided by homeowner's, mobile home owner's, 7 dwelling, tenant's, condominium unit owner's, and similar 8 policies, and commercial lines residential coverage, which 9 consists of the type of coverage provided by condominium 10 association, apartment building, and similar policies. 11 3. For the purposes of this subsection, the term 12 "homestead property" means: 13 a. Property that has been granted a homestead 14 exemption under chapter 196; 15 b. Property for which the owner has a current, written 16 lease with a renter for a term of at least 7 months and for 17 which the dwelling is insured by the corporation for $200,000 18 or less; 19 c. An owner-occupied mobile home or manufactured home, 20 as defined in s. 320.01, which is permanently affixed to real 21 property, is owned by a Florida resident, and has been granted 22 a homestead exemption under chapter 196 or, if the owner does 23 not own the real property, the owner certifies that the mobile 24 home or manufactured home is his or her principal place of 25 residence; 26 d. Tenant's coverage; 27 e. Commercial lines residential property; or 28 f. Any county, district, or municipal hospital; a 29 hospital licensed by any not-for-profit corporation qualified 30 under s. 501(c)(3) of the United States Internal Revenue Code; 31 or a continuing care retirement community that is certified 3 6:35 PM 04/25/07 s2836c2c-24-j04
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS for CS for SB 2836 Barcode 655740 1 under chapter 651 and that receives an exemption from ad 2 valorem taxes under chapter 196. 3 4. For the purposes of this subsection, the term 4 "nonhomestead property" means property that is not homestead 5 property. 6 5. Effective July 1, 2008, a personal lines 7 residential structure that has a dwelling replacement cost of 8 $1 million or more, or a single condominium unit that has a 9 combined dwelling and content replacement cost of $1 million 10 or more is not eligible for coverage by the corporation. Such 11 dwellings insured by the corporation on June 30, 2008, may 12 continue to be covered by the corporation until the end of the 13 policy term. However, such dwellings that are insured by the 14 corporation and become ineligible for coverage due to the 15 provisions of this subparagraph may reapply and obtain 16 coverage in the high-risk account and be considered 17 "nonhomestead property" if the property owner provides the 18 corporation with a sworn affidavit from one or more insurance 19 agents, on a form provided by the corporation, stating that 20 the agents have made their best efforts to obtain coverage and 21 that the property has been rejected for coverage by at least 22 one authorized insurer and at least three surplus lines 23 insurers. If such conditions are met, the dwelling may be 24 insured by the corporation for up to 3 years, after which time 25 the dwelling is ineligible for coverage. The office shall 26 approve the method used by the corporation for valuing the 27 dwelling replacement cost for the purposes of this 28 subparagraph. If a policyholder is insured by the corporation 29 prior to being determined to be ineligible pursuant to this 30 subparagraph and such policyholder files a lawsuit challenging 31 the determination, the policyholder may remain insured by the 4 6:35 PM 04/25/07 s2836c2c-24-j04
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS for CS for SB 2836 Barcode 655740 1 corporation until the conclusion of the litigation. 2 6. For properties constructed on or after January 1, 3 2009, the corporation may not insure any property located 4 within 2,500 feet landward of the coastal construction control 5 line created pursuant to s. 161.053 unless the property meets 6 the requirements of the code-plus building standards developed 7 by the Florida Building Commission. 8 7. It is the intent of the Legislature that 9 policyholders, applicants, and agents of the corporation 10 receive service and treatment of the highest possible level 11 but never less than that generally provided in the voluntary 12 market. It also is intended that the corporation be held to 13 service standards no less than those applied to insurers in 14 the voluntary market by the office with respect to 15 responsiveness, timeliness, customer courtesy, and overall 16 dealings with policyholders, applicants, or agents of the 17 corporation. 18 8. Effective January 1, 2009, a personal lines 19 residential structure that is located in the "wind-borne 20 debris region," as defined in s. 1609.2, International 21 Building Code (2006), and that has a just valuation for 22 purposes of ad valorem taxation of $300,000 or more is not 23 eligible for coverage by the corporation unless the structure 24 has shutters, impact-resistant glass, or such other approved 25 opening protections as required under the Florida Building 26 Code for a newly constructed residential structure in that 27 area. 28 29 (Redesignate subsequent sections.) 30 31 5 6:35 PM 04/25/07 s2836c2c-24-j04
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS for CS for SB 2836 Barcode 655740 1 ================ T I T L E A M E N D M E N T =============== 2 And the title is amended as follows: 3 On page 2, line 25, after the first semicolon, 4 5 insert: 6 amending s. 627.351, F.S.; requiring that a 7 residential structure located in a wind-borne 8 debris region have certain opening protections 9 required under the Florida Building Code in 10 order to be eligible for coverage by the 11 Citizens Property Insurance Corporation; 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 6 6:35 PM 04/25/07 s2836c2c-24-j04