Florida Senate - 2019                          SENATOR AMENDMENT
       Bill No. CS/CS/CS/HB 301, 2nd Eng.
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                Floor: 1/F/2R          .                                
             05/02/2019 10:21 AM       .                                

       Senator Flores moved the following:
    1         Senate Amendment (with title amendment)
    3         Between lines 450 and 451
    4  insert:
    5         Section 13. 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. 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 subparagraph does not require or allow
   32  the corporation to adopt rates lower than the rates otherwise
   33  required or allowed by this paragraph.
   34         4. The rate filings for the corporation which were approved
   35  by the office and took effect January 1, 2007, are rescinded,
   36  except for those rates that were lowered. As soon as possible,
   37  the corporation shall begin using the lower rates that were in
   38  effect on December 31, 2006, and provide refunds to
   39  policyholders who paid higher rates as a result of that rate
   40  filing. The rates in effect on December 31, 2006, remain in
   41  effect for the 2007 and 2008 calendar years except for any rate
   42  change that results in a lower rate. The next rate change that
   43  may increase rates shall take effect pursuant to a new rate
   44  filing recommended by the corporation and established by the
   45  office, subject to this paragraph.
   46         5. Beginning on July 15, 2009, and annually thereafter, the
   47  corporation must make a recommended actuarially sound rate
   48  filing for each personal and commercial line of business it
   49  writes, to be effective no earlier than January 1, 2010.
   50         6.a. Beginning on or after January 1, 2010, and
   51  notwithstanding the board’s recommended rates and the office’s
   52  final order regarding the corporation’s filed rates under
   53  subparagraph 1., the corporation shall annually implement a rate
   54  increase that which, except for sinkhole coverage, does not
   55  exceed 10 percent for any single policy issued by the
   56  corporation, excluding coverage changes and surcharges.
   57         b.Beginning January 1, 2020, and notwithstanding the
   58  board’s recommended rates and the office’s final order regarding
   59  the corporation’s filed rates under subparagraph 1., the
   60  corporation shall annually implement a rate increase that,
   61  except for sinkhole coverage, does not exceed 10 percent for any
   62  single policy issued by the corporation and does not exceed 5
   63  percent for any single policy issued by the corporation to an
   64  insured located in a county where the office has determined
   65  there is not a reasonable degree of competition and where 25
   66  percent or more of the county land is designated as an area of
   67  critical state concern under s. 380.05, excluding coverage
   68  changes and surcharges. This sub-subparagraph expires January 1,
   69  2022.
   70         7. The corporation may also implement an increase to
   71  reflect the effect on the corporation of the cash buildup factor
   72  pursuant to s. 215.555(5)(b).
   73         8. The corporation’s implementation of rates as prescribed
   74  in subparagraph 6. shall cease for any line of business written
   75  by the corporation upon the corporation’s implementation of
   76  actuarially sound rates. Thereafter, the corporation shall
   77  annually make a recommended actuarially sound rate filing for
   78  each commercial and personal line of business the corporation
   79  writes.
   81  ================= T I T L E  A M E N D M E N T ================
   82  And the title is amended as follows:
   83         Delete line 55
   84  and insert:
   85         discounts are authorized; amending s. 627.351, F.S.;
   86         specifying a limit on annual rate increases, except
   87         for certain coverage, in policies issued by the
   88         corporation to insureds located in certain counties;
   89         providing for future expiration; amending s. 627.426,
   90         F.S.;