Florida Senate - 2013                                      SB 96
       By Senator Flores
       37-00004-13                                             201396__
    1                        A bill to be entitled                      
    2         An act relating to Citizens Property Insurance
    3         Corporation rates; reordering and amending s. 627.351,
    4         F.S.; providing that any restrictions on annual rate
    5         increases apply to both new and renewal policies;
    6         deleting obsolete provisions; providing an effective
    7         date.
    9  Be It Enacted by the Legislature of the State of Florida:
   11         Section 1. Paragraph (n) of subsection (6) of section
   12  627.351, Florida Statutes, is reordered and amended to read:
   13         627.351 Insurance risk apportionment plans.—
   15         (n)1. Rates for coverage provided by the corporation must
   16  be actuarially sound and subject to s. 627.062, except as
   17  otherwise provided in this paragraph.
   18         1. The corporation shall file its recommended rates with
   19  the office at least annually. The corporation shall provide any
   20  additional information regarding the rates which the office
   21  requires. The office shall consider the recommendations of the
   22  board and issue a final order establishing the rates for the
   23  corporation within 45 days after the recommended rates are
   24  filed. The corporation may not pursue an administrative
   25  challenge or judicial review of the final order of the office.
   26         2. In addition to the rates otherwise determined pursuant
   27  to this paragraph, the corporation shall impose and collect an
   28  amount equal to the premium tax provided in s. 624.509 to
   29  augment the financial resources of the corporation.
   30         3. After the public hurricane loss-projection model under
   31  s. 627.06281 has been found to be accurate and reliable by the
   32  Florida Commission on Hurricane Loss Projection Methodology, the
   33  model shall serve as the minimum benchmark for determining the
   34  windstorm portion of the corporation’s rates. This subparagraph
   35  does not require or allow the corporation to adopt rates lower
   36  than the rates otherwise required or allowed by this paragraph.
   37         4. The rate filings for the corporation which were approved
   38  by the office and took effect January 1, 2007, are rescinded,
   39  except for those rates that were lowered. As soon as possible,
   40  the corporation shall begin using the lower rates that were in
   41  effect on December 31, 2006, and provide refunds to
   42  policyholders who paid higher rates as a result of that rate
   43  filing. The rates in effect on December 31, 2006, remain in
   44  effect for the 2007 and 2008 calendar years except for any rate
   45  change that results in a lower rate. The next rate change that
   46  may increase rates shall take effect pursuant to a new rate
   47  filing recommended by the corporation and established by the
   48  office, subject to this paragraph.
   49         4.5.Beginning on July 15, 2009, and annually thereafter,
   50  The corporation shall annually must make a recommended
   51  actuarially sound rate filing for each personal and commercial
   52  line of business it writes, to be effective no earlier than
   53  January 1, 2010.
   54         5.6.Beginning on or after January 1, 2010, and
   55  Notwithstanding the board’s recommended rates and the office’s
   56  final order regarding the corporation’s filed rates under
   57  subparagraph 1., the corporation shall annually implement a rate
   58  increase that which, except for sinkhole coverage, does not
   59  exceed 10 percent for any single policy, new or existing, issued
   60  by the corporation, excluding coverage changes and surcharges.
   61         6.7. The corporation may also implement an increase to
   62  reflect the effect on the corporation of the cash buildup factor
   63  pursuant to s. 215.555(5)(b).
   64         7.8. The corporation’s implementation of rates as
   65  prescribed in subparagraph 5. 6. shall cease for any line of
   66  business written by the corporation upon the corporation’s
   67  implementation of actuarially sound rates. Thereafter, the
   68  corporation shall annually make a recommended actuarially sound
   69  rate filing for each commercial and personal line of business
   70  the corporation writes.
   71         Section 2. This act shall take effect upon becoming a law.