Florida Senate - 2019 SENATOR AMENDMENT
Bill No. CS/CS/CS/HB 301, 2nd Eng.
Ì641940ÉÎ641940
LEGISLATIVE ACTION
Senate . House
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Floor: 1/F/2R .
05/02/2019 10:21 AM .
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Senator Flores moved the following:
1 Senate Amendment (with title amendment)
2
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.—
8 (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
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35 by the office and took effect January 1, 2007, are rescinded,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.
80
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.;