HB 949

1	A bill to be entitled
2	An act relating to property insurance; authorizing the
3	State Board of Administration to sell reinsurance to
4	private insurance companies taking insurance policies from
5	Citizens Property Insurance Corporation under certain
6	circumstances; providing for a discount to policyholders
7	of Citizens Property Insurance Corporation; authorizing
8	the State Board of Administration to offer discounted
9	reinsurance rates to private insurance companies under
10	certain circumstances; authorizing the State Board of
11	Administration to determine the number of policies taken
12	from Citizens Property Insurance Corporation to get
13	discounted reinsurance; providing requirements for private
14	insurance companies to get a discounted reinsurance rate;
15	providing an effective date.
16
17	WHEREAS, in the 2007A Special Session, the Legislature
18	enacted HB 1A, which will result in only modest rate reductions
19	for Citizens Property Insurance Corporation's customers on a
20	short-term, nonpermanent basis, and the corporation was not
21	relieved of its overly large population, and
22	WHEREAS, more reforms must be enacted using market forces
23	by providing incentives to private carriers to offer affordable
24	insurance to the corporation's customers in return for
25	inexpensive reinsurance from the state, so that the corporation
26	would return to being an insurance company of last resort, NOW,
27	THEREFORE,
28
29	Be It Enacted by the Legislature of the State of Florida:
30
31	Section 1.  (1)  The State Board of Administration may sell
32	reinsurance below the $6 billion retention level in the Florida
33	Hurricane Catastrophe Fund within the range of 30 to 60 percent
34	online to private insurance companies that agree to take out of
35	Citizens Property Insurance Corporation a specified number of
36	individual policies held by Citizens Property Insurance
37	Corporation on a geographically diverse basis.
38	(2)  Policyholders of Citizens Property Insurance
39	Corporation must receive a discount no less than a rate
40	specified by the State Board of Administration, which must be no
41	less than 10 percent.
42	(3)  The State Board of Administration may offer discounted
43	reinsurance rates to private insurance companies through offers
44	to negotiate via auction, individual negotiation, or any method
45	designed to achieve the best discounted rate for policyholders
46	of Citizens Property Insurance Corporation.
47	(4)  The State Board of Administration may determine how
48	many policies a private company must assume from Citizens
49	Property Insurance Corporation in order to purchase reinsurance
50	from the state at the discounted rate.
51	(5)  Private insurance companies must assume 100 percent of
52	each policy taken from Citizens Property Insurance Corporation
53	in exchange for the discounted reinsurance rate.
54	Section 2.  This act shall take effect upon becoming a law.

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