Florida Senate - 2017                        COMMITTEE AMENDMENT
       Bill No. CS for CS for SB 454
                              LEGISLATIVE ACTION                        
                    Senate             .             House              

       The Committee on Rules (Flores) recommended the following:
    1         Senate Amendment (with title amendment)
    3         Between lines 351 and 352
    4  insert:
    5         Section 10. Paragraph (n) of subsection (6) of section
    6  627.351, Florida Statutes, is amended to read:
    7         627.351 Insurance risk apportionment plans.—
    9         (n)1. Rates for coverage provided by the corporation must
   10  be actuarially sound and subject to s. 627.062, except as
   11  otherwise provided in this paragraph. The corporation shall file
   12  its recommended rates with the office at least annually. The
   13  corporation shall provide any additional information regarding
   14  the rates which the office requires. The office shall consider
   15  the recommendations of the board and issue a final order
   16  establishing the rates for the corporation within 45 days after
   17  the recommended rates are filed. The corporation may not pursue
   18  an administrative challenge or judicial review of the final
   19  order of the office.
   20         2. In addition to the rates otherwise determined pursuant
   21  to this paragraph, the corporation shall impose and collect an
   22  amount equal to the premium tax provided in s. 624.509 to
   23  augment the financial resources of the corporation.
   24         3.a. After the public hurricane loss-projection model under
   25  s. 627.06281 has been found to be accurate and reliable by the
   26  Florida Commission on Hurricane Loss Projection Methodology, the
   27  model shall be considered when establishing the windstorm
   28  portion of the corporation’s rates. The corporation may use the
   29  public model results in combination with the results of private
   30  models to calculate rates for the windstorm portion of the
   31  corporation’s rates. This sub-subparagraph subparagraph does not
   32  require or allow the corporation to adopt rates lower than the
   33  rates otherwise required or allowed by this paragraph.
   34         b. Notwithstanding sub-subparagraph a., in a rating
   35  territory located in a county that the office determines does
   36  not have a reasonable degree of competition, the corporation
   37  shall annually file and the office shall approve a recommended
   38  rate change of 0 percent for the windstorm portion of a rate in
   39  that territory if, within that territory:
   40         (I)At least one of the windstorm models used by the
   41  corporation indicates an increase in the windstorm portion of
   42  the rate and a different such model indicates a decrease in the
   43  windstorm portion of the rate;
   44         (II) The combination of models used by the corporation
   45  under sub-subparagraph a. to calculate the rate indicates an
   46  increase for the windstorm portion of the rate; and
   47         (III) At least 70 percent of residential policies covering
   48  windstorm losses in the county are covered by the corporation.
   50  This sub-subparagraph expires December 31, 2022, unless
   51  reenacted by the Legislature.
   52         4. The rate filings for the corporation which were approved
   53  by the office and took effect January 1, 2007, are rescinded,
   54  except for those rates that were lowered. As soon as possible,
   55  the corporation shall begin using the lower rates that were in
   56  effect on December 31, 2006, and provide refunds to
   57  policyholders who paid higher rates as a result of that rate
   58  filing. The rates in effect on December 31, 2006, remain in
   59  effect for the 2007 and 2008 calendar years except for any rate
   60  change that results in a lower rate. The next rate change that
   61  may increase rates shall take effect pursuant to a new rate
   62  filing recommended by the corporation and established by the
   63  office, subject to this paragraph.
   64         5. Beginning on July 15, 2009, and annually thereafter, the
   65  corporation must make a recommended actuarially sound rate
   66  filing for each personal and commercial line of business it
   67  writes, to be effective no earlier than January 1, 2010.
   68         6. Beginning on or after January 1, 2010, and
   69  notwithstanding the board’s recommended rates and the office’s
   70  final order regarding the corporation’s filed rates under
   71  subparagraph 1., the corporation shall annually implement a rate
   72  increase which, except for sinkhole coverage, does not exceed 10
   73  percent for any single policy issued by the corporation,
   74  excluding coverage changes and surcharges.
   75         7. The corporation may also implement an increase to
   76  reflect the effect on the corporation of the cash buildup factor
   77  pursuant to s. 215.555(5)(b).
   78         8. The corporation’s implementation of rates as prescribed
   79  in subparagraph 6. shall cease for any line of business written
   80  by the corporation upon the corporation’s implementation of
   81  actuarially sound rates. Thereafter, the corporation shall
   82  annually make a recommended actuarially sound rate filing for
   83  each commercial and personal line of business the corporation
   84  writes.
   86  ================= T I T L E  A M E N D M E N T ================
   87  And the title is amended as follows:
   88         Delete line 30
   89  and insert:
   90         organizations; amending s. 627.351, F.S.; requiring,
   91         under certain circumstances, the Citizens Property
   92         Insurance Corporation to annually file and the Office
   93         of Insurance Regulation to approve a 0 percent
   94         recommended rate change for the windstorm portion of a
   95         rate in certain rating territories; providing an
   96         expiration date for the requirement; amending s.
   97         627.4035, F.S.; revising