Florida Senate - 2024                        COMMITTEE AMENDMENT
       Bill No. SB 1106
       
       
       
       
       
       
                                Ì320544ÇÎ320544                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  01/18/2024           .                                
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       The Committee on Banking and Insurance (Hooper) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 206 - 259
    4  and insert:
    5  Beginning with the implementation of the corporation’s next
    6  annual rate change on or after August 1, 2024, this subparagraph
    7  does not apply to a personal lines residential structure that
    8  has a dwelling replacement cost of $700,000 or more or a single
    9  condominium unit that has a combined dwelling and contents
   10  replacement cost of $700,000 or more.
   11         6. The corporation may also implement an increase to
   12  reflect the effect on the corporation of the cash buildup factor
   13  pursuant to s. 215.555(5)(b).
   14         7. The corporation’s implementation of rates as prescribed
   15  in subparagraphs 5. and 9. 8. shall cease for any line of
   16  business written by the corporation upon the corporation’s
   17  implementation of actuarially sound rates. Thereafter, the
   18  corporation shall annually make a recommended actuarially sound
   19  rate filing that is not competitive with approved rates in the
   20  admitted voluntary market for each commercial and personal line
   21  of business the corporation writes.
   22         8. Effective upon implementation of the corporation’s next
   23  annual rate change on or after August 1, 2024, for the purpose
   24  of ensuring that the corporation’s rates are not competitive
   25  with approved rates charged in the admitted voluntary market as
   26  required by subparagraph 1., a surcharge equal to the lesser of
   27  $2,500 or 25 percent of the uncapped premium calculated using
   28  the corporation’s approved rates applies to each personal lines
   29  residential policy insuring a structure that has a dwelling
   30  replacement cost of $700,000 or more and to each policy insuring
   31  a single condominium unit that has a combined dwelling and
   32  contents replacement cost of $700,000 or more. Notwithstanding
   33  this subsection, effective August 1, 2024, a personal lines
   34  residential structure that has a dwelling replacement cost of
   35  $700,000 or more and a single condominium unit that has a
   36  combined dwelling and contents replacement cost of $700,000 or
   37  more are not eligible for coverage by the corporation if the
   38  risk is offered comparable coverage from an authorized insurer
   39  at the insurer’s approved rate under a standard policy including
   40  wind coverage.
   41         9.8. The following new or renewal personal lines policies
   42  written on or after November 1, 2023, are not subject to the
   43  rate increase limitations in subparagraph 5., but may not be
   44  charged more than 50 percent above, nor less than, the prior
   45  year’s established rate for the corporation:
   46         a. Policies that do not cover a primary residence;
   47         b. New policies under which the coverage for the insured
   48  risk, before the date of application with the corporation, was
   49  last provided by an insurer determined by the office to be
   50  unsound or an insurer placed in receivership under chapter 631;
   51  or
   52         c. Subsequent renewals of those policies, including the new
   53  policies in sub-subparagraph b., under which the coverage for
   54  the insured risk, before the date of application with the
   55  corporation, was last provided by an insurer determined by the
   56  office to be unsound or an insurer placed in receivership under
   57  chapter 631.
   58         10.9. As used in this paragraph, the term “primary
   59  residence” means the dwelling that is the policyholder’s primary
   60  home or is a rental property that is the primary home of the
   61  tenant, and which the policyholder or tenant occupies for more
   62  than 9 months of each year.
   63         Section 2. This act shall take effect August 1, 2024.
   64  
   65  ================= T I T L E  A M E N D M E N T ================
   66  And the title is amended as follows:
   67         Delete lines 13 - 16
   68  and insert:
   69         units under certain circumstances; providing an
   70         effective date.