| 1 | Representative Hays offered the following: |
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| 3 | Amendment to Amendment (870297) |
| 4 | Remove line(s) 2735-2837 and insert: |
| 5 | Section 18. (1) The Citizens Property Insurance |
| 6 | Corporation Mission Review Task Force is created to analyze and |
| 7 | compile available data and to develop a report setting forth the |
| 8 | statutory and operational changes needed to return Citizens |
| 9 | Property Insurance Corporation to its former role as a state- |
| 10 | created, noncompetitive residual market mechanism that provides |
| 11 | property insurance coverage to risks that are otherwise entitled |
| 12 | but unable to obtain such coverage in the private insurance |
| 13 | market. The task force shall submit a report to the Governor, |
| 14 | the President of the Senate, and the Speaker of the House of |
| 15 | Representatives by January 31, 2009. At a minimum, the task |
| 16 | force shall analyze and evaluate relevant and applicable |
| 17 | information and data and develop recommendations concerning: |
| 18 | (a) The nature of Citizens Property Insurance |
| 19 | Corporation's role in providing property insurance coverage only |
| 20 | if such coverage is not available from private insurers. |
| 21 | (b) The ability of the admitted market to offer policies |
| 22 | to those consumers formerly insured through Citizens Property |
| 23 | Insurance Corporation. This consideration shall include, but not |
| 24 | be limited to, the availability of private market reinsurance |
| 25 | and coverage through the Florida Hurricane Catastrophe Fund and |
| 26 | the capacity of the industry to offer policies to former |
| 27 | Citizens Property Insurance Corporation policyholders within |
| 28 | existing writing ratio limitations. |
| 29 | (c) The relationship of rates charged by Citizens Property |
| 30 | Insurance Corporation to rates charged by private insurers, with |
| 31 | due consideration for the corporation's role as a noncompetitive |
| 32 | residual market mechanism. |
| 33 | (d) The relationships between the exposure of Citizens |
| 34 | Property Insurance Corporation to catastrophic hurricane losses, |
| 35 | the corporation's history of purchasing any reinsurance |
| 36 | coverage, and the corporation's capital capacity to meet its |
| 37 | potential claim obligations without incurring large deficits. |
| 38 | (e) The projected assessments on all policies required to |
| 39 | offset the lack of capitol to pay claims. |
| 40 | (f) The projections under paragraph (e) shall be specific |
| 41 | to losses of $3 billion, $12 billion, and $23 billion caused by |
| 42 | a storm or a group of storms in any given year. |
| 43 | (g) The operational implications of the variation in the |
| 44 | number of policies in force over time in Citizens Property |
| 45 | Insurance Corporation and the merits of outsourcing some or all |
| 46 | of its operational responsibilities. |
| 47 | (h) Changes in the mission and operations of Citizens |
| 48 | Property Insurance Corporation to reduce or eliminate any |
| 49 | adverse effect such mission and operations may be having on the |
| 50 | promotion of sound and economic growth and development of the |
| 51 | coastal areas of this state. |
| 52 | (i) Appropriate and consistent geographic boundaries of |
| 53 | the high-risk account. |
| 54 | (j) The rankings, by county, of the average approved rates |
| 55 | in Citizens Property Insurance Corporation and any savings |
| 56 | associated with policyholder choice in selecting Citizens. |
| 57 | (2) The task force shall be composed of 11 members as |
| 58 | follows: |
| 59 | (a) Two members appointed by the Speaker of the House of |
| 60 | Representatives. |
| 61 | 1. One member representing a property and casualty |
| 62 | residential insurer that provides at least 150,000 homeowner's |
| 63 | insurance policies in this state at the time of the creation of |
| 64 | the task force. |
| 65 | 2. One member representing a surplus lines insurance |
| 66 | company. |
| 67 | (b) Two members appointed by the President of the |
| 68 | Senate. |
| 69 | 1. One member representing a property and casualty |
| 70 | commercial non-residential insurer. |
| 71 | 2. One member representing a property and casualty |
| 72 | residential insurer with fewer than 150,000 homeowner's policies |
| 73 | in this state at the time of the creation of the task force. |
| 74 | (c) Three members appointed by the Governor who are not |
| 75 | employed by or professionally affiliated with an insurance |
| 76 | company or a subsidiary of an insurance company, at least one of |
| 77 | whom must be consumer advocates or members of a consumer |
| 78 | advocacy organization or agency. |
| 79 | (d) Two members appointed by the Chief Financial Officer |
| 80 | representing insurance agents in this state. |
| 81 | (e) One member representing Citizens Property Insurance |
| 82 | Corporation selected by Citizens Chairman of the Board. |
| 83 | (f) The Commissioner of Insurance Regulation or his or her |
| 84 | designee. |
| 85 | (3) The task force shall conduct research, hold public |
| 86 | meetings, receive testimony, employ consultants and |
| 87 | administrative staff, and undertake other activities determined |
| 88 | by its members to be necessary to complete its responsibilities. |
| 89 | Citizens Property Insurance Corporation shall have appropriate |
| 90 | senior staff attend task force meetings, shall respond to |
| 91 | requests for testimony and data by the task force, shall |
| 92 | otherwise cooperate with the task force, and shall provide |
| 93 | funding for the necessary costs of implementing the provisions |
| 94 | of this section. |
| 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 | Section 19. The Chief Financial Officer shall provide a |
| 107 | report on the economic impact on the state of a 1-in-100-year |
| 108 | hurricane to the Governor, the President of the Senate, and the |
| 109 | Speaker of the House of Representatives by March 1 of each year. |
| 110 | The report shall include an estimate of the short-term and long- |
| 111 | term fiscal impacts of such a storm on Citizens Property |
| 112 | Insurance Corporation, the Florida Hurricane Catastrophe Fund, |
| 113 | the private insurance and reinsurance markets, the state |
| 114 | economy, and the state debt. The report shall also include an |
| 115 | analysis of the average premium increase to reach a 1-in-100- |
| 116 | year hurricane event and list the average cost, in both a |
| 117 | percentage and dollar amount, impact to consumers on a county- |
| 118 | level basis. The report may also include recommendations by the |
| 119 | Chief Financial Officer for preparing for such a hurricane and |
| 120 | reducing the economic impact of such a hurricane on the state. |
| 121 | In preparing the analysis, the Chief Financial Officer shall |
| 122 | coordinate with and obtain data from the Office of Insurance |
| 123 | Regulation, Citizens Property Insurance Corporation, the Florida |
| 124 | Hurricane Catastrophe Fund, the Florida Commission on Hurricane |
| 125 | Loss Projection Methodology, the State Board of Administration, |
| 126 | the Office of Economic and Demographic Research, and other state |
| 127 | agencies. |
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