| 1 | A bill to be entitled |
| 2 | An act relating to insurance; amending s. 627.351, F.S.; |
| 3 | extending the rate freeze imposed upon Citizens Property |
| 4 | Insurance Corporation by 1 year; providing an effective |
| 5 | date. |
| 6 |
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| 7 | Be It Enacted by the Legislature of the State of Florida: |
| 8 |
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| 9 | Section 1. Paragraph (m) of subsection (6) of section |
| 10 | 627.351, Florida Statutes, is amended to read: |
| 11 | 627.351 Insurance risk apportionment plans.-- |
| 12 | (6) CITIZENS PROPERTY INSURANCE CORPORATION.-- |
| 13 | (m)1. Rates for coverage provided by the corporation shall |
| 14 | be actuarially sound and subject to the requirements of s. |
| 15 | 627.062, except as otherwise provided in this paragraph. The |
| 16 | corporation shall file its recommended rates with the office at |
| 17 | least annually. The corporation shall provide any additional |
| 18 | information regarding the rates which the office requires. The |
| 19 | office shall consider the recommendations of the board and issue |
| 20 | a final order establishing the rates for the corporation within |
| 21 | 45 days after the recommended rates are filed. The corporation |
| 22 | may not pursue an administrative challenge or judicial review of |
| 23 | the final order of the office. |
| 24 | 2. In addition to the rates otherwise determined pursuant |
| 25 | to this paragraph, the corporation shall impose and collect an |
| 26 | amount equal to the premium tax provided for in s. 624.509 to |
| 27 | augment the financial resources of the corporation. |
| 28 | 3. After the public hurricane loss-projection model under |
| 29 | s. 627.06281 has been found to be accurate and reliable by the |
| 30 | Florida Commission on Hurricane Loss Projection Methodology, |
| 31 | that model shall serve as the minimum benchmark for determining |
| 32 | the windstorm portion of the corporation's rates. This |
| 33 | subparagraph does not require or allow the corporation to adopt |
| 34 | rates lower than the rates otherwise required or allowed by this |
| 35 | paragraph. |
| 36 | 4. The rate filings for the corporation which were |
| 37 | approved by the office and which took effect January 1, 2007, |
| 38 | are rescinded, except for those rates that were lowered. As soon |
| 39 | as possible, the corporation shall begin using the lower rates |
| 40 | that were in effect on December 31, 2006, and shall provide |
| 41 | refunds to policyholders who have paid higher rates as a result |
| 42 | of that rate filing. The rates in effect on December 31, 2006, |
| 43 | shall remain in effect for the 2007, and 2008, and 2009 calendar |
| 44 | years except for any rate change that results in a lower rate. |
| 45 | The next rate change that may increase rates shall take effect |
| 46 | pursuant to a new rate filing recommended by the corporation and |
| 47 | established by the office, subject to the requirements of this |
| 48 | paragraph. |
| 49 | 5. Beginning on July 15, 2010 2009, and each year |
| 50 | thereafter, the corporation must make a recommended actuarially |
| 51 | sound rate filing for each personal and commercial line of |
| 52 | business it writes, to be effective no earlier than January 1, |
| 53 | 2011 2010. |
| 54 | Section 2. This act shall take effect July 1, 2009. |