Florida Senate - 2009 COMMITTEE AMENDMENT
Bill No. SB 2036
Barcode 843584
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
04/06/2009 .
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The Committee on Banking and Insurance (Bennett) recommended the
following:
1 Senate Amendment (with title amendment)
2
3 Delete everything after the enacting clause
4 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 in
13 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
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; or
38 2. The ratio of the insurer’s net written premium to its
39 surplus as to policyholders, as calculated based on the
40 information in the insurer’s most recent annual statement, does
41 not exceed two to one. For purposes of this subparagraph, the
42 calculation of net written premium shall consider only
43 reinsurance placed with reinsurers that have been given a
44 financial strength rating of “A” or better by the A.M. Best
45 Company, or have been given a comparable rating by another
46 rating agency which is generally considered accurate or
47 acceptable.
48 (c) The insurer may not purchase coverage relating to
49 temporary increase in coverage limit options under s.
50 215.555(17) from the Florida Hurricane Catastrophe Fund.
51 (d) Before the issuance or renewal of a policy at rates
52 established in accordance with s. 627.062(2)(k), the applicant
53 or insured must be given the following notice, printed in at
54 least 12-point boldfaced type:
55
56 THE RATE FOR THIS POLICY IS NOT REGULATED BY THE FLORIDA
57 OFFICE OF INSURANCE REGULATION AND MAY BE HIGHER THAN THE RATE
58 APPROVED BY THAT OFFICE. A RESIDENTIAL PROPERTY POLICY SUBJECT
59 TO FULL RATE REGULATION REQUIREMENTS MAY BE AVAILABLE FROM THIS
60 INSURER, ANOTHER INSURER, OR CITIZENS PROPERTY INSURANCE
61 CORPORATION. PLEASE DISCUSS YOUR POLICY OPTIONS WITH YOUR
62 INSURANCE AGENT.
63
64 (e) Before the issuance of a policy at a rate established
65 in accordance with s. 627.062(2)(k), or before the first renewal
66 at such rate of a policy originally before the effective date of
67 this section, the applicant or insured must:
68 1. For purposes of comparison, be given a premium quote for
69 a policy from Citizens Property Insurance Corporation,
70 reflecting comparable coverages, limits, and deductibles to the
71 extent available from the corporation.
72 2. Sign the following acknowledgement form, which must be
73 retained by the insurer or agent for at least 3 years:
74 ACKNOWLEDGEMENT
75 1. I HAVE REVIEWED THE REQUIRED DISCLOSURES AND THE
76 REQUIRED PREMIUM QUOTE FROM CITIZENS PROPERTY INSURANCE
77 CORPORATION.
78 2. I UNDERSTAND THAT THE RATE FOR THIS RESIDENTIAL PROPERTY
79 INSURANCE POLICY IS NOT REGULATED BY THE FLORIDA OFFICE OF
80 INSURANCE REGULATION AND MAY BE HIGHER THAN RATES APPROVED BY
81 THAT OFFICE.
82 3. I UNDERSTAND THAT A RESIDENTIAL PROPERTY INSURANCE
83 POLICY SUBJECT TO FULL RATE REGULATION REQUIREMENTS MAY BE
84 AVAILABLE FROM THIS INSURER, ANOTHER INSURER, OR CITIZENS
85 PROPERTY INSURANCE CORPORATION.
86 (2) For policies renewed at a rate established in
87 accordance with s. 627.062(2)(k), the notice described in
88 paragraph (1)(d) must be furnished in writing at the same time
89 as the renewal notice on a document separate from the renewal
90 notice, but may be contained within the same mailing as the
91 renewal notice.
92 Section 3. This act shall take effect upon becoming a law.
93
94 ================= T I T L E A M E N D M E N T ================
95 And the title is amended as follows:
96 Delete everything before the enacting clause
97 and insert:
98 A bill to be entitled
99 An act relating to residential property insurance;
100 amending s. 627.062, F.S.; authorizing certain
101 insurers to use a rate in excess of the otherwise
102 applicable filed rate; prohibiting the consideration
103 of certain policies when making a specified
104 calculation; preserving the authority of the Office of
105 Insurance Regulation to disapprove rates as inadequate
106 or disapprove a rate filing for using an unlawful
107 rating factor; authorizing the office to direct an
108 insurer to make a specified type of rate filing under
109 certain circumstances; creating s. 627.7031, F.S.;
110 authorizing an insurer to offer or renew policies at
111 rates established in accordance with specified
112 provisions of state law if certain conditions are met;
113 requiring that certain policies contain a specified
114 notice; providing an effective date.