Florida Senate - 2009                                     SB 862
       
       
       
       By Senator Fasano
       
       
       
       
       11-01004-09                                            2009862__
    1                        A bill to be entitled                      
    2         An act relating to insurance; amending s. 627.351,
    3         F.S.; extending the rate freeze imposed upon Citizens
    4         Property Insurance Corporation by 1 year; providing an
    5         effective date.
    6         
    7  Be It Enacted by the Legislature of the State of Florida:
    8         
    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 approved
   37  by the office and which took effect January 1, 2007, are
   38  rescinded, except for those rates that were lowered. As soon as
   39  possible, the corporation shall begin using the lower rates that
   40  were in effect on December 31, 2006, and shall provide refunds
   41  to policyholders who have paid higher rates as a result of that
   42  rate filing. The rates in effect on December 31, 2006, shall
   43  remain in effect for the 2007, and 2008, and 2009 calendar years
   44  except for any rate change that results in a lower rate. The
   45  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.