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A bill to be entitled

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An act relating to mitigation discounts for residential

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property insurance premiums; amending s. 627.0629, F.S.;

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requiring that the Office of Insurance Regulation develop

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and make publicly available before a specified deadline a

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proposed method for insurers to establish windstorm

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mitigation premium discounts that correlate to the uniform

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home rating scale; requiring that the Financial Services

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Commission adopt rules before a specified deadline;

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requiring insurers to make rate filings pursuant to such

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method; authorizing the commission to make changes by rule

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to the uniform home grading scale and specify by rule the

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minimum required discounts, credits, or other rate

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differentials; requiring that such rate differentials be

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consistent with generally accepted actuarial principles

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and wind loss mitigation studies; providing an effective

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date.

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

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     Section 1.  Subsection (1) of section 627.0629, Florida

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Statutes, is amended to read:

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     627.0629  Residential property insurance; rate filings.--

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     (1)(a) It is the intent of the Legislature that insurers

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must provide savings to consumers who install or implement

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windstorm damage mitigation techniques, alterations, or solutions

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to their properties to prevent windstorm losses. A rate filing

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for residential property insurance must include actuarially

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reasonable discounts, credits, or other rate differentials, or

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appropriate reductions in deductibles, for properties on which

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fixtures or construction techniques demonstrated to reduce the

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amount of loss in a windstorm have been installed or implemented.

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The fixtures or construction techniques shall include, but not be

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limited to, fixtures or construction techniques which enhance

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roof strength, roof covering performance, roof-to-wall strength,

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wall-to-floor-to-foundation strength, opening protection, and

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window, door, and skylight strength. Credits, discounts, or other

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rate differentials, or appropriate reductions in deductibles, for

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fixtures and construction techniques which meet the minimum

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requirements of the Florida Building Code must be included in the

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rate filing. All insurance companies must make a rate filing

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which includes the credits, discounts, or other rate

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differentials or reductions in deductibles by February 28, 2003.

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By July 1, 2007, the office shall reevaluate the discounts,

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credits, other rate differentials, and appropriate reductions in

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deductibles for fixtures and construction techniques that meet

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the minimum requirements of the Florida Building Code, based upon

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actual experience or any other loss relativity studies available

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to the office. The office shall determine the discounts, credits,

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other rate differentials, and appropriate reductions in

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deductibles that reflect the full actuarial value of such

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revaluation, which may be used by insurers in rate filings.

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     (b) By February 1, 2009, the Office of Insurance

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Regulation, in consultation with the Department of Financial

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Services and the Department of Community Affairs, shall develop

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and make publicly available a proposed method for insurers to

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establish discounts, credits, or other rate differentials for

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hurricane mitigation features which directly correlate to the

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numerical rating assigned to a structure pursuant to the uniform

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home grading scale adopted by the Financial Services Commission

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pursuant to s. 215.55865, including any proposed changes to the

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uniform home grading scale. By October 1, 2009, the commission

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shall adopt rules requiring insurers to make rate filings for

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residential property insurance which revise insurers' discounts,

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credits, or other rate differentials for hurricane mitigation

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features so that such rate differentials correlate directly to

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the uniform home grading scale. The rules may include such

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changes to the uniform home grading scale as the commission

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determines are necessary, and may specify the minimum required

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discounts, credits, or other rate differentials. However, such

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rate differentials must be consistent with generally accepted

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actuarial principles and wind loss mitigation studies.

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