Citizens Prperty Insurance Crpratin ("Citizens") Deletes the requirement that Citizens charge rates sufficient t purchase reinsurance t cver specified levels f prbable maximum lss fr each f its three accunts. Deletes the requirement that Citizens' rates be nn-cmpetitive and n lwer than the tp 20 insurers. Requires rates t be actuarially sund and subject t the standards that generally apply t prperty insurers under 627.062, F.S. (prhibits prperty insurance rates that are excessive, inadequate, r unfairly discriminatry). Rescinds the apprved rate increase that tk effect January 1, 2007. Requires Citizens t prvide refunds t persns wh have paid this rate. Freezes rates at Dec. 31, 2006, level fr remainder f 2007 (thugh rates may be decreased). Requires new (actuarially sund) rate filing, effective January 1, 2008. Delays until 2008, the requirements that Citizens impse up t a 10 percent f premium assessment n all nn-hmestead plicyhlders if a deficit ccurs, and if that surcharge is insufficient, that Citizens impse a 10 percent renewal surcharge n all Citizens' plicyhlders. Delays until 2008, the requirement that Citizens impse a 10 percent renewal surcharge n all Citizens' plicyhlders after a deficit if the first 10 percent surcharge n nn-hmestead plicyhlders is nt sufficient. Requires the Office f Insurance Regulatin (OIR) t annually establish Citizens' rates within 45 days after Citizens files recmmended rates. Requires Citizens t exempt plicies frm the 10-day waiting perid fr a real estate clsing. As f January 1, 2009, t qualify fr Citizens, prperties ver 500 t 2,500 feet landward f the Castal Cnstructin Cntrl Line must be built t "Cde-Plus" building standards develped by the Flrida Building Cmmissin. Deletes prvisin making nn-hmestead plicyhlders ineligible fr Citizens' cverage effective March 1, 2007, unless three surplus lines insurers and ne authrized insurer reject cverage. Prvides that if a new applicant t Citizens is ffered cverage frm an insurer at the insurer's apprved rate, then that plicyhlder is nt eligible fr a Citizens' plicy, unless the insurer's premium is mre than 25 percent greater than the premium fr cmparable cverage prvided by Citizens. Hwever, with regard t a plicyhlder f Citizens, the plicyhlder remains eligible fr cverage frm Citizens regardless f any ffer f cverage frm a private market insurer. Requires the Flrida Market Assistance Plan t develp a database fr this purpse. Authrizes Citizens t prvide cmmercial (business) cverage statewide and requires the OIR t rder the transfer f cmmercial cverage t Citizens frm the Prperty and Casualty Jint Underwriting Assciatin. Authrizes Citizens t write multi-peril plicies (as well as wind-nly plicies) in the areas eligible fr cverage in the High-Risk Accunt, subject t apprval by the Financial Services Cmmissin and the Legislative Budget Cmmissin.
Expands the assessment base f Citizens (prperty insurance) t be the same as the Flrida Hurricane Catastrphe Fund (prperty and casualty insurance, including aut insurance, but nt wrkers' cmpensatin r accident and health), but exempts medical malpractice insurance. Citizens' plan f peratin may prvide such limits f cverage as the bard determines apprpriate. The plan f peratin may require cmmercial prperty t meet specified hurricane mitigatin cnstructin features as a cnditin f eligibility fr cverage. Clarifies that takeut plicies remved frm Citizens are cnsidered t be the sle bligatin and direct insurance f the takeut cmpany (Citizens des nt retain liability fr such plicies). Requires Citizens t be subject t assessments levied by the Flrida Insurance Guaranty Assciatin. Allws the State Bard f Administratin t invest and manage the assets f Citizens. Clarifies that the appinting fficers may recall members f the Citizens Bard f Directrs at will. Creates the Task Frce n Citizens Prperty Insurance Claims Handling and Reslutin. The task frce has seven members, and is t cnduct research and hearings and make recmmendatins as t issues regarding Citizens, including imprving custmer service and claims handling, and make recmmendatins as it deems apprpriate fr legislative actin during the 2006-2008 legislative biennium. The task frce expires after the 2006-2008 legislative biennium. Cverage Exclusins; Deductibles; Payment f Premium Requires insurers t make available t plicyhlders the ptin t exclude windstrm cverage, if the plicyhlder persnally writes a statement that he/she des nt want such cverage and prvides dcumentatin f apprval by any mrtgage r lien hlder. Eliminates maximum allwable deductibles, but requires a written statement by the plicyhlder and apprval by a mrtgage r lien hlder if the deductible is in excess f 10 percent fr a hme valued at less than $500,000. Prhibits prperty insurers frm denying cverage based slely n the age f the structure and requires cnsideratin f wind resistance f structure. Requires an insurer t prvide the plicyhlder the ptin f selecting an apprpriate reductin in the plicy's hurricane deductible r selecting the apprpriate discunt credit r ther rate differential. Requires insurers t make available t plicyhlders the ptin t exclude cverage fr cntents, if the plicyhlder persnally writes a statement that he des nt want such cverage. Requires insurers t allw persnal lines residential and cmmercial plicyhlders t pay premiums n a quarterly r semiannual installment plan.
Insurance Rating Law; Discunts; Premium Ntice; Timely Payment f Claims Requires the chief executive fficer r chief financial fficer and the chief actuary f a prperty insurer t sign a swrn certificatin, subject t perjury and administrative penalties, that the infrmatin in the rate filing des nt cntain any untrue statements f a material fact r mit material facts and reflects premium savings that are reasnably expected t result frm legislative enactments and are in accrdance with accepted actuarial techniques. Prhibits excess prfits by prperty insurers and requires refunds t cnsumers f any excess prfits cllected by an insurer ver a ten-year perid, if certain threshlds are met. Allws a prperty and casualty insurer t ffer a discunt n a plicy based n the fact that the insured purchased anther plicy frm the insurer. Requires ntice f nn-renewals that wuld therwise be effective during strm seasn t be 100 days prir t effective date r June 1, whichever is earlier. Requires insurers t specify n the renewal premium ntice: The amunt f an assessment by the Flrida Hurricane Catastrphe Fund, Citizens Prperty Insurance Crpratin, and the Flrida Insurance Guaranty Assciatin, and the full name f the assessing authrity. The amunt f premium change due t a change in rate r cverage. Deletes "rate-flex" prvisin that allws residential prperty insurers t increase r decrease rates by up t five percent n a statewide average, r 10 percent fr any territry, withut being subject t a determinatin by the OIR that the rate is excessive r unfairly discriminatry. Prhibits thrugh Jan 1, 2009, the allwance fr prperty and casualty insurers t implement a rate change prir t filing fr apprval with OIR ("use and file"), unless the insurer files fr a rate that is less than the insurer's mst recent rate apprved by the OIR. All filings that d nt seek a lwer rate must be made under the "file and use" prcedures that require filing at least 90 days prir t the prpsed effective date. Requires prperty insurers t pay r deny a claim within 90 days f the receipt f the claim, unless the failure t pay the claim is caused by factrs beynd the cntrl f the insurer that reasnably prevent payment. Failure t cmply with this requirement is a vilatin f the Insurance Cde. Suspends the allwance fr prperty and casualty insurers t submit a rate filing disapprved by the OIR t an arbitratin panel fr final reslutin fr all filings made after the act's effective date until January 1, 2009. Insurer Affiliates and Subsidiaries ("PUPs") Raises the surplus t plicyhlders' requirement t $50 millin fr a dmestic residential prperty insurer that is a whlly-wned subsidiary f an insurer authrized t d business in anther state.
"Cherry Picking" (Aut Insurers) Requires insurers writing private passenger autmbile insurance in Flrida and that write hmewners plicies in ther states, t write hmewners cverage in Flrida, unless an affiliate writes hmewners insurance in Flrida. Effective 1/1/08. Hurricane Mitigatin Requires the Financial Services Cmmissin t develp by rule a unifrm mitigatin verificatin inspectin frm that must be used by all insurers t factr discunts fr wind insurance. Makes the fllwing changes t grant prgram within the Flrida Cmprehensive Hurricane Damage Mitigatin Prgram: Lw-incme hmewners are exempt frm the requirement t have a dwelling with an "insured value" f $500,000 r less (i.e., the hme des nt have t be insured). Grants may be used n previusly inspected existing structures r a sitebuilt single-family dwelling that is under cnstructin t replace a hmestead damaged r destryed by a hurricane (rebuild). Lw-incme hmewners may use grant funding fr repair t existing structures leading t mitigatin imprvements. Authrizes the DFS t cntract with a nt-fr-prfit crpratin t cnduct all r parts f the Flrida Cmprehensive Hurricane Damage Mitigatin Prgram. Requires wind inspectrs t have a level tw backgrund check, which includes fingerprinting. Requires the DFS t develp and maintain as a public recrd, a statewide list f authrized wind certificatin and hurricane mitigatin inspectrs. Requires the Financial Services Cmmissin t develp a unifrm hme grading scale t grade a hme's ability t withstand the wind-lad frm a hurricane. Each licensed general lines insurance agent and cnsumer representative must cmplete ne hur f cntinuing educatin every tw years regarding premium discunts available n prperty insurance plicies based n hurricane mitigatin ptins and the means f btaining the discunts. Requires insurers t prvide ntice f cmbinatins f discunts, credits, rate differentials, r reductins in deductibles, fr windstrm mitigatin. Requires insurers t ffer deductible reductins fr mitigatin measures. Windstrm Mitigatin Study Cmmissin Requires appintment f a windstrm mitigatin study cmmissin t reprt by March 6, 2007. The cmmittee shall analyze slutins fr mitigating the effects f windstrms n structures and make recmmendatins fr mitigating windstrm
damage. The cmmittee shall have eight members, with the Gvernr, President f the Senate, Speaker f the Huse, and Chief Financial Officer each selecting tw members. The cmmittee expires May 15, 2007. Flrida Building Cde Eliminates the "Panhandle exemptin" by: Requiring lcal jurisdictins t immediately enfrce these requirements pending adptin by the Cmmissin, including windbrne debris requirements f the Internatinal Building Cde (2006) and the Internatinal Residential Cde (2006). Requiring the Flrida Building Cmmissin t adpt the wind-brnedebris prtectin requirements f the Internatinal Building Cde (2006) and the Internatinal Residential Cde (2006) within the wind-brnedebris regin as defined by thse cdes. Prhibits amendments r mdificatins t the fundatin cdes f the Flrida Building Cde that diminish prvisins related t wind-resistance r water intrusin. Hwever, the cmmissin may amend such prvisins t enhance thse requirements. Requires the Flrida Building Cmmissin t eliminate all exceptins in the Flrida Building Cde related t wind-brne-debris prtectin per the requirements f Sectin 15 f SB 4A. Cmmissin shall fulfill bligatin befre July 1, 2007. Des nt apply t the High Velcity Hurricane Zne. Deletes the internal pressurizatin ptin fr buildings in the 120 mph+ wind zne. Requires the Flrida Building Cmmissin t develp vluntary "Cde-Plus" guidelines fr increasing the hurricane resistance f buildings that may be mdeled n the Miami-Dade building cde. Insurance Cnsumer Advcate Requires the Insurance Cnsumer Advcate t prvide an annual reprt card n insurance cmpanies using a letter grade scale established by the Financial Services Cmmissin. Self-Insurance Funds; Bnding Authrity Hspitals risk pling and self-insurance funds: Allws alliances f tw r mre hspitals licensed and lcated in Flrida fr prperty cverage. Prvides requirements fr hspital alliance self-insurance funds.
Allws the alliance f hspitals in special districts, cunty hspitals, r municipal hspitals t brrw and bnd t finance prperty cverage and claims. Prvides bnding guidelines. Lcal gvernment risk pling and self-insurance funds: Allws lcal gvernments t self-insure fr prperty cverage. Allws gvernmental entities t bnd t finance prperty cverage and claims. Cmmunity assciatin self-insurance funds: Allws ne r mre cmmunity assciatins created and perating as cndminium, c-p, hmewners, timeshare and vacatin, and mbile hme park lt tenant assciatins t apply t OIR t frm a cmmercial self-insurance fund fr prperty and casualty insurance. Nt-fr-prfit self-insurance funds: Allws tw r mre nt-fr-prfit crpratins t create a self-insurance fund fr prperty r casualty insurance, under certain cnditins. Insurance fr Cndminiums and Similar Entities Mdifies insurance prvisins in the Cndminium Act: Limits insurance requirements in the Cndminium Act t "residential" cndminiums, as currently defined (generally, a cndminium cnsisting f tw r mre units used as a private temprary r permanent residence). Specifies "adequate insurance" under the act fr a grup f at least three cmmunities perating as residential cndminiums, cperatives, hmewners' assciatins, r timeshare entities. Reinsurance Authrizes the OIR t waive r lwer the depsit requirement fr reinsurers licensed in ther cuntries, based n criteria related t the financial strength f the insurer and the quality f the regulatry jurisdictin. Catastrphic Grund Cver Cllapse Cverage; Sinkhles Requires prperty insurers t prvide cverage fr catastrphic grund cver cllapse, defined as gelgical activity that: Results in the abrupt cllapse f the grund cver that is clearly visible t the naked eye; Results in structural damage t the building and its fundatin; and The insured structure being cndemned and rdered t be vacated by the apprpriate gvernmental agency.
Cntents cverage shall apply if there is a lss resulting frm a catastrphic grund cver cllapse. Structural damage cnsisting merely frm the settling r cracking f a fundatin, structure, r building des nt cnstitute a lss resulting frm a catastrphic grund cver cllapse. Insurers must cntinue t make sinkhle cverage as currently defined in statute available fr an apprpriate additinal premium. Insurers ffering plicies that exclude cverage fr sinkhle lsses must prvide written ntice t the plicyhlder in 14-pint type. Hurricane Claims Data Authrizes OIR t require prperty insurers t reprt additinal data n hurricane claims. Flrida Disaster Recvery Initiative (FDRI) Fr fiscal year 2006-2007, prvides an apprpriatin f $100,066,518 frm the Flrida Small Cities Cmmunity Develpment Blck Grant prgram fund t the Department f Cmmunity Affairs. The funding must be used t harden singlefamily and multi-family affrdable husing, t mitigate against hurricane damage and increasing csts f prperty insurance. Flrida Insurance Guaranty Assciatin (FIGA) Clarifies the Legislature's intent f a 2006 law (Ch. 2006-12, L.O.F.) that FIGA has the authrity t use an emergency assessment f up t tw percent f premium t either directly pay the cvered claims f inslvent insurers r t utilize such emergency assessment prceeds t retire the indebtedness f bnds. Legislative Intent fr Grant Prgram t Lw-Incme Persns States the Legislature intends t create during the 2007 Legislative Sessin a grant prgram t facilitate the purchase f prperty insurance by lw-incme persns as defined in 420.602(8), F.S., t prtect their hmestead prperty. Insurance Capital Build-Up Incentive Prgram Allws an insurer writing nly manufactured husing residential prperty insurance t qualify fr a surplus nte f up t $7 millin, if the insurer's surplus, new capital, and the surplus nte ttal at least $14 millin. Such an insurer is given pririty t receive a surplus nte under the prgram.