HB 513

1
A bill to be entitled
2An act relating to insurance rate incentives for carbon
3monoxide detectors and alarms; creating s. 627.06295,
4F.S.; providing legislative intent; requiring residential
5property insurance rate filings to include certain rate
6incentives for installing and maintaining carbon monoxide
7detectors and alarms under certain circumstances;
8requiring the Office of Insurance Regulation to develop a
9proposed method for insurers to establish such incentives;
10requiring the Financial Services Commission to adopt rules
11for insurers to provide such incentives; providing an
12effective date.
13
14Be It Enacted by the Legislature of the State of Florida:
15
16     Section 1.  Section 627.06295, Florida Statutes, is created
17to read:
18     627.06295  Residential property insurance; rate filings.--
19     (1)  It is the intent of the Legislature that insurers must
20provide savings to consumers who install and maintain carbon
21monoxide detectors and alarms in their properties to prevent
22loss of life through carbon monoxide inhalation. A rate filing
23for residential property insurance must include actuarially
24reasonable discounts, credits, or other rate differentials, or
25appropriate reductions in deductibles, for properties on which
26carbon monoxide detectors and alarms have been installed and
27maintained. Credits, discounts, or other rate differentials, or
28appropriate reductions in deductibles, for installation and
29maintenance of carbon monoxide detectors and alarms that meet
30the minimum requirements of the Florida Building Code must be
31included in the rate filing. All insurance companies must make a
32rate filing which includes the credits, discounts, or other rate
33differentials or reductions in deductibles by February 28, 2010.
34By October 1, 2009, the office shall reevaluate the discounts,
35credits, other rate differentials, and appropriate reductions in
36deductibles for installation and maintenance of carbon monoxide
37detectors and alarms that meet the minimum requirements of the
38Florida Building Code, based upon actual experience or any other
39loss relativity studies available to the office. The office
40shall determine the discounts, credits, other rate
41differentials, and appropriate reductions in deductibles that
42reflect the full actuarial value of such revaluation, which may
43be used by insurers in rate filings.
44     (2)  By February 1, 2011, the Office of Insurance
45Regulation, in consultation with the Department of Financial
46Services and the Department of Community Affairs, shall develop
47and make publicly available a proposed method for insurers to
48establish discounts, credits, or other rate differentials for
49carbon monoxide detectors and alarms. By October 1, 2011, the
50Financial Services Commission shall adopt rules requiring
51insurers to make rate filings for residential property insurance
52which revise insurers' discounts, credits, or other rate
53differentials for installation and maintenance of carbon
54monoxide detectors and alarms. The rules shall allow a period of
55at least 2 years after the effective date of the revised
56discounts, credits, or other rate differentials for a property
57owner to obtain an inspection or otherwise qualify for the
58revised discounts, credits, or other rate differentials, during
59which time the insurer shall continue to apply the discount,
60credit, or rate differential that was applied immediately prior
61to the effective date of the revised discount, credit, or rate
62differential.
63     Section 2.  This act shall take effect July 1, 2009.


CODING: Words stricken are deletions; words underlined are additions.