Bill Text: FL S1274 | 2014 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Citizens Property Insurance Corporation
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Introduced - Dead) 2014-04-28 - Laid on Table, companion bill(s) passed, see CS/CS/HB 1089 (Ch. 2014-140) [S1274 Detail]
Download: Florida-2014-S1274-Introduced.html
Bill Title: Citizens Property Insurance Corporation
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Introduced - Dead) 2014-04-28 - Laid on Table, companion bill(s) passed, see CS/CS/HB 1089 (Ch. 2014-140) [S1274 Detail]
Download: Florida-2014-S1274-Introduced.html
Florida Senate - 2014 SB 1274 By Senator Hays 11-01315-14 20141274__ 1 A bill to be entitled 2 An act relating to Citizens Property Insurance 3 Corporation; amending s. 627.351, F.S.; providing 4 exemptions from the restriction on obtaining coverage 5 from Citizens Property Insurance Corporation for major 6 structures under certain conditions; amending s. 7 627.711, F.S.; authorizing the corporation to create 8 an addendum to the uniform mitigation verification 9 form for use by counties under certain circumstances; 10 providing an effective date. 11 12 Be It Enacted by the Legislature of the State of Florida: 13 14 Section 1. Paragraph (a) of subsection (6) of section 15 627.351, Florida Statutes, is amended to read: 16 627.351 Insurance risk apportionment plans.— 17 (6) CITIZENS PROPERTY INSURANCE CORPORATION.— 18 (a) The public purpose of this subsection is to ensure that 19 there is an orderly market for property insurance for residents 20 and businesses of this state. 21 1. The Legislature finds that private insurers are 22 unwilling or unable to provide affordable property insurance 23 coverage in this state to the extent sought and needed. The 24 absence of affordable property insurance threatens the public 25 health, safety, and welfare and likewise threatens the economic 26 health of the state. The state therefore has a compelling public 27 interest and a public purpose to assist in assuring that 28 property in the state is insured and that it is insured at 29 affordable rates so as to facilitate the remediation, 30 reconstruction, and replacement of damaged or destroyed property 31 in order to reduce or avoid the negative effects otherwise 32 resulting to the public health, safety, and welfare, to the 33 economy of the state, and to the revenues of the state and local 34 governments which are needed to provide for the public welfare. 35 It is necessary, therefore, to provide affordable property 36 insurance to applicants who are in good faith entitled to 37 procure insurance through the voluntary market but are unable to 38 do so. The Legislature intends, therefore, that affordable 39 property insurance be provided and that it continue to be 40 provided, as long as necessary, through Citizens Property 41 Insurance Corporation, a government entity that is an integral 42 part of the state, and that is not a private insurance company. 43 To that end, the corporation shall strive to increase the 44 availability of affordable property insurance in this state, 45 while achieving efficiencies and economies, and while providing 46 service to policyholders, applicants, and agents which is no 47 less than the quality generally provided in the voluntary 48 market, for the achievement of the foregoing public purposes. 49 Because it is essential for this government entity to have the 50 maximum financial resources to pay claims following a 51 catastrophic hurricane, it is the intent of the Legislature that 52 the corporation continue to be an integral part of the state and 53 that the income of the corporation be exempt from federal income 54 taxation and that interest on the debt obligations issued by the 55 corporation be exempt from federal income taxation. 56 2. The Residential Property and Casualty Joint Underwriting 57 Association originally created by this statute shall be known as 58 the Citizens Property Insurance Corporation. The corporation 59 shall provide insurance for residential and commercial property, 60 for applicants who are entitled, but, in good faith, are unable 61 to procure insurance through the voluntary market. The 62 corporation shall operate pursuant to a plan of operation 63 approved by order of the Financial Services Commission. The plan 64 is subject to continuous review by the commission. The 65 commission may, by order, withdraw approval of all or part of a 66 plan if the commission determines that conditions have changed 67 since approval was granted and that the purposes of the plan 68 require changes in the plan. For the purposes of this 69 subsection, residential coverage includes both personal lines 70 residential coverage, which consists of the type of coverage 71 provided by homeowner’s, mobile home owner’s, dwelling, 72 tenant’s, condominium unit owner’s, and similar policies; and 73 commercial lines residential coverage, which consists of the 74 type of coverage provided by condominium association, apartment 75 building, and similar policies. 76 3. With respect to coverage for personal lines residential 77 structures: 78 a. Effective January 1, 2014, a structure that has a 79 dwelling replacement cost of $1 million or more, or a single 80 condominium unit that has a combined dwelling and contents 81 replacement cost of $1 million or more is not eligible for 82 coverage by the corporation. Such dwellings insured by the 83 corporation on December 31, 2013, may continue to be covered by 84 the corporation until the end of the policy term. The office 85 shall approve the method used by the corporation for valuing the 86 dwelling replacement cost for the purposes of this subparagraph. 87 If a policyholder is insured by the corporation before being 88 determined to be ineligible pursuant to this subparagraph and 89 such policyholder files a lawsuit challenging the determination, 90 the policyholder may remain insured by the corporation until the 91 conclusion of the litigation. 92 b. Effective January 1, 2015, a structure that has a 93 dwelling replacement cost of $900,000 or more, or a single 94 condominium unit that has a combined dwelling and contents 95 replacement cost of $900,000 or more, is not eligible for 96 coverage by the corporation. Such dwellings insured by the 97 corporation on December 31, 2014, may continue to be covered by 98 the corporation only until the end of the policy term. 99 c. Effective January 1, 2016, a structure that has a 100 dwelling replacement cost of $800,000 or more, or a single 101 condominium unit that has a combined dwelling and contents 102 replacement cost of $800,000 or more, is not eligible for 103 coverage by the corporation. Such dwellings insured by the 104 corporation on December 31, 2015, may continue to be covered by 105 the corporation until the end of the policy term. 106 d. Effective January 1, 2017, a structure that has a 107 dwelling replacement cost of $700,000 or more, or a single 108 condominium unit that has a combined dwelling and contents 109 replacement cost of $700,000 or more, is not eligible for 110 coverage by the corporation. Such dwellings insured by the 111 corporation on December 31, 2016, may continue to be covered by 112 the corporation until the end of the policy term. 113 114 The requirements of sub-subparagraphs b.-d. do not apply in 115 counties where the office determines there is not a reasonable 116 degree of competition. In such counties a personal lines 117 residential structure that has a dwelling replacement cost of 118 less than $1 million, or a single condominium unit that has a 119 combined dwelling and contents replacement cost of less than $1 120 million, is eligible for coverage by the corporation. 121 4. It is the intent of the Legislature that policyholders, 122 applicants, and agents of the corporation receive service and 123 treatment of the highest possible level but never less than that 124 generally provided in the voluntary market. It is also intended 125 that the corporation be held to service standards no less than 126 those applied to insurers in the voluntary market by the office 127 with respect to responsiveness, timeliness, customer courtesy, 128 and overall dealings with policyholders, applicants, or agents 129 of the corporation. 130 5.a. Effective January 1, 2009, a personal lines 131 residential structure that is located in the “wind-borne debris 132 region,” as defined in s. 1609.2, International Building Code 133 (2006), and that has an insured value on the structure of 134 $750,000 or more is not eligible for coverage by the corporation 135 unless the structure has opening protections as required under 136 the Florida Building Code for a newly constructed residential 137 structure in that area. A residential structure is deemed to 138 comply with this subparagraph if it has shutters or opening 139 protections on all openings and if such opening protections 140 complied with the Florida Building Code at the time they were 141 installed. 142 b. Any major structure as defined in s. 161.54(6)(a) for 143 which a permit is applied on or after July 1, 2014, for new 144 construction or substantial improvement as defined in s. 145 161.54(12)is not eligible for coverage by the corporation if 146 the structure is seaward of the coastal construction control 147 line established pursuant to s. 161.053 or is within the Coastal 148 Barrier Resources System as designated by 16 U.S.C. ss. 3501 149 3510. The restrictions of this subparagraph imposed on major 150 structures located within the Coastal Barrier Resources System 151 do not apply in a county where the corporation provides 152 windstorm coverage on more than 75 percent of personal lines 153 residential policies. 154 Section 2. Subsection (9) is added to section 627.711, 155 Florida Statutes, to read: 156 627.711 Notice of premium discounts for hurricane loss 157 mitigation; uniform mitigation verification inspection form.— 158 (9) Citizens Property Insurance Corporation may create an 159 addendum to the uniform mitigation verification form for use by 160 a county when applying mitigation credits if that county has: 161 (a) Implemented a building code that is stronger than the 162 highest code recognized on the uniform mitigation verification 163 form; and 164 (b) Completed a study verifying the use of the stronger 165 code. 166 Section 3. This act shall take effect July 1, 2014.