Florida Senate - 2011                        COMMITTEE AMENDMENT
       Bill No. SB 408
       
       
       
       
       
       
                                Barcode 829260                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  02/22/2011           .                                
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       The Committee on Banking and Insurance (Richter) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 2223 - 2260
    4  and insert:
    5         (y) It is the intent of the Legislature that the amendments
    6  to this subsection enacted in 2002 should, over time, reduce the
    7  probable maximum windstorm losses in the residual markets and
    8  should reduce the potential assessments to be levied on property
    9  insurers and policyholders statewide. In furtherance of this
   10  intent,:
   11         1. the board shall, on or before February 1 of each year,
   12  provide a report to the President of the Senate and the Speaker
   13  of the House of Representatives showing the reduction or
   14  increase in the 100-year probable maximum loss attributable to
   15  wind-only coverages and the quota share program under this
   16  subsection combined, as compared to the benchmark 100-year
   17  probable maximum loss of the Florida Windstorm Underwriting
   18  Association. For purposes of this paragraph, the benchmark 100
   19  year probable maximum loss of the Florida Windstorm Underwriting
   20  Association is shall be the calculation dated February 2001 and
   21  based on November 30, 2000, exposures. In order to ensure
   22  comparability of data, the board shall use the same methods for
   23  calculating its probable maximum loss as were used to calculate
   24  the benchmark probable maximum loss.
   25         2. Beginning December 1, 2010, if the report under
   26  subparagraph 1. for any year indicates that the 100-year
   27  probable maximum loss attributable to wind-only coverages and
   28  the quota share program combined does not reflect a reduction of
   29  at least 25 percent from the benchmark, the board shall reduce
   30  the boundaries of the high-risk area eligible for wind-only
   31  coverages under this subsection in a manner calculated to reduce
   32  such probable maximum loss to an amount at least 25 percent
   33  below the benchmark.
   34         3. Beginning February 1, 2015, if the report under
   35  subparagraph 1. for any year indicates that the 100-year
   36  probable maximum loss attributable to wind-only coverages and
   37  the quota share program combined does not reflect a reduction of
   38  at least 50 percent from the benchmark, the boundaries of the
   39  high-risk area eligible for wind-only coverages under this
   40  subsection shall be reduced by the elimination of any area that
   41  is not seaward of a line 1,000 feet inland from the Intracoastal
   42  Waterway.
   43  
   44  ================= T I T L E  A M E N D M E N T ================
   45         And the title is amended as follows:
   46         Delete lines 109 - 112
   47  and insert:
   48         certain measures; deleting a requirement that the
   49         board reduce the boundaries of certain high-risk areas
   50         eligible for wind-only coverages under certain
   51         circumstances; amending s. 627.3511, F.S.;