| 1 | Representative Proctor offered the following: |
| 2 |
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| 3 | Amendment (with title amendment) |
| 4 | Remove everything after the enacting clause and insert: |
| 5 | Section 1. Paragraph (k) is added to subsection (2) of |
| 6 | section 627.062, Florida Statutes, to read: |
| 7 | 627.062 Rate standards.-- |
| 8 | (2) As to all such classes of insurance: |
| 9 | (k)1. Insurers complying with the requirements of s. |
| 10 | 627.7031 may use a rate in excess of the otherwise applicable |
| 11 | filed rate. |
| 12 | 2. Policies subject to this paragraph may not be counted |
| 13 | in the calculation under s. 627.171(2). |
| 14 | 3. Such rates shall be filed with the office. This |
| 15 | paragraph does not affect the authority of the office to |
| 16 | disapprove a rate as inadequate or to disapprove a rate filing |
| 17 | for using a rating factor that is unlawful under s. 626.9541(1). |
| 18 | Upon finding that an insurer has used a rating factor that is |
| 19 | unlawful under s. 626.9541(1), the office may direct the insurer |
| 20 | to make a filing for rates governed by this paragraph and which |
| 21 | do not use such rating factor. |
| 22 |
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| 23 | The provisions of this subsection shall not apply to workers' |
| 24 | compensation and employer's liability insurance and to motor |
| 25 | vehicle insurance. |
| 26 | Section 2. Section 627.7031, Florida Statutes, is created |
| 27 | to read: |
| 28 | 627.7031 Residential property insurance option.-- |
| 29 | (1) An insurer may offer or renew policies at rates |
| 30 | established in accordance with s. 627.062(2)(k) if all of the |
| 31 | following conditions are met: |
| 32 | (a) The insurer is authorized to write property insurance |
| 33 | in this state. |
| 34 | (b)1. The insurer has, at the time of issuance of the |
| 35 | policy or at the time of first renewal at rates pursuant to s. |
| 36 | 627.062(2)(k), surplus as to policyholders equal to or greater |
| 37 | than $500 million as calculated based on the information in the |
| 38 | insurer's most recent annual statement; or |
| 39 | 2. The insurer has, at the time of issuance of the policy |
| 40 | or at the time of first renewal at rates pursuant to s. |
| 41 | 627.062(2)(k), a surplus as to policyholders equal to or greater |
| 42 | than $200 million and a ratio of net written premium to its |
| 43 | surplus as to policyholders, as calculated based on the |
| 44 | information in the insurer's most recent annual statement, not |
| 45 | exceeding two to one. For purposes of this subparagraph, the |
| 46 | calculation of net written premium shall consider only |
| 47 | reinsurance placed pursuant to s. 215.555(4) and with reinsurers |
| 48 | or direct insurers that have been given a financial strength |
| 49 | rating of "A-minus" or better by A.M. Best Company, or have been |
| 50 | given a comparable rating by another rating agency which is |
| 51 | generally considered accurate or acceptable. |
| 52 | (c) The insurer may not purchase coverage relating to |
| 53 | temporary increase in coverage limit options under s. |
| 54 | 215.555(17) from the Florida Hurricane Catastrophe Fund. |
| 55 | (d) Before the issuance or renewal of a policy at rates |
| 56 | established in accordance with s. 627.062(2)(k), the applicant |
| 57 | or insured must be given the following notice, printed in at |
| 58 | least 12-point boldfaced type: |
| 59 |
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| 60 | THE RATE FOR THIS POLICY IS NOT REGULATED BY THE FLORIDA |
| 61 | OFFICE OF INSURANCE REGULATION AND MAY BE HIGHER THAN RATES |
| 62 | APPROVED BY THAT OFFICE. A RESIDENTIAL PROPERTY POLICY SUBJECT |
| 63 | TO FULL RATE REGULATION REQUIREMENTS MAY BE AVAILABLE FROM |
| 64 | ANOTHER INSURER OR CITIZENS PROPERTY INSURANCE CORPORATION. |
| 65 | PLEASE DISCUSS YOUR POLICY OPTIONS WITH AN INSURANCE AGENT. YOU |
| 66 | MAY WISH TO VIEW THE OFFICE OF INSURANCE REGULATION'S WEBSITE |
| 67 | WWW.SHOPANDCOMPARERATES.COM FOR MORE INFORMATION ABOUT CHOICES |
| 68 | AVAILABLE TO YOU. |
| 69 |
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| 70 | (e) Before the issuance of a policy at a rate established |
| 71 | in accordance with s. 627.062(2)(k), or before the first renewal |
| 72 | at such rate of a policy originally issued before the effective |
| 73 | date of this section, the applicant or insured must: |
| 74 | 1. Be given a quote for a policy from Citizens Property |
| 75 | Insurance Corporation, or for a fully rate-regulated policy from |
| 76 | an admitted insurer willing to insure the risk, reflecting |
| 77 | substantially similar coverages, limits, and deductibles to the |
| 78 | extent available. |
| 79 | 2. Sign the following acknowledgement form, which must be |
| 80 | retained by the insurer or agent for at least 3 years. If the |
| 81 | acknowledgement form is signed by the insured, it is presumed |
| 82 | that the insured has been informed and understands the form: |
| 83 |
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| 84 | ACKNOWLEDGEMENT |
| 85 | 1. I HAVE REVIEWED THE REQUIRED DISCLOSURES AND THE |
| 86 | REQUIRED PREMIUM COMPARISON. |
| 87 | 2. I UNDERSTAND THAT THE RATE FOR THIS RESIDENTIAL |
| 88 | PROPERTY INSURANCE POLICY IS NOT REGULATED BY THE FLORIDA OFFICE |
| 89 | OF INSURANCE REGULATION AND MAY BE HIGHER THAN RATES APPROVED BY |
| 90 | THAT OFFICE. |
| 91 | 3. I UNDERSTAND THAT A RESIDENTIAL PROPERTY INSURANCE |
| 92 | POLICY SUBJECT TO FULL RATE REGULATION REQUIREMENTS MAY BE |
| 93 | AVAILABLE FROM ANOTHER INSURER OR CITIZENS PROPERTY INSURANCE |
| 94 | CORPORATION. |
| 95 | 4. I UNDERSTAND THAT THE FLORIDA OFFICE OF INSURANCE |
| 96 | REGULATION'S WEBSITE WWW.SHOPANDCOMPARERATES.COM CONTAINS |
| 97 | RESIDENTIAL PROPERTY INSURANCE RATE COMPARISON INFORMATION. |
| 98 | 5. I UNDERSTAND THAT SHOULD A HURRICANE CAUSE SEVERE |
| 99 | DAMAGE IN FLORIDA, A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE |
| 100 | CORPORATION MAY BE REQUIRED TO PAY A HIGHER ASSESSMENT THAN THE |
| 101 | ASSESSMENT OTHERWISE APPLICABLE TO THIS RESIDENTIAL PROPERTY |
| 102 | INSURANCE POLICY. |
| 103 | |
| 104 | (2) For policies renewed at a rate established in |
| 105 | accordance with s. 627.062(2)(k), the notice described in |
| 106 | paragraph (1)(d) must be furnished in writing at the same time |
| 107 | as the renewal notice on a document separate from the renewal |
| 108 | notice, but may be contained within the same mailing as the |
| 109 | renewal notice. |
| 110 | (3) This section does not apply to residential property |
| 111 | insurance policies that exclude coverage for the perils of |
| 112 | windstorm or hurricane. |
| 113 | (4) Notwithstanding s. 627.4133, an insurer issuing a |
| 114 | policy under this section shall provide the named insured |
| 115 | written notice of nonrenewal, cancellation, or termination at |
| 116 | least 180 days before the effective date of the nonrenewal, |
| 117 | cancellation, or termination. |
| 118 | Section 3. This act shall take effect upon becoming a law. |
| 119 |
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| 120 | ----------------------------------------------------- |
| 121 | T I T L E A M E N D M E N T |
| 122 | Remove the entire title and insert: |
| 123 | A bill to be entitled |
| 124 | An act relating to residential property insurance; amending s. |
| 125 | 627.062, F.S.; authorizing certain insurers to use a rate in |
| 126 | excess of the otherwise applicable filed rate; prohibiting the |
| 127 | consideration of certain policies when making a specified |
| 128 | calculation; preserving the authority of the Office of Insurance |
| 129 | Regulation to disapprove rates as inadequate or disapprove a |
| 130 | rate filing for using an unlawful rating factor; authorizing the |
| 131 | office to direct an insurer to make a specified type of rate |
| 132 | filing under certain circumstances; creating s. 627.7031, F.S.; |
| 133 | authorizing an insurer to offer or renew policies at rates |
| 134 | established in accordance with specified provisions of state law |
| 135 | if certain conditions are met; requiring that certain policies |
| 136 | contain a specified notice; providing for applicability; |
| 137 | requiring written notice of nonrenewal, cancellation, or |
| 138 | termination; providing an effective date. |