Bill Amendment: FL S1046 | 2013 | Regular Session
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: Insurance
Status: 2013-04-26 - Laid on Table, companion bill(s) passed, see CS/HB 157 (Ch. 2013-190), CS/HB 1191 (Ch. 2013-209), CS/CS/HB 7125 (Ch. 2013-160), SB 356 (Ch. 2013-125), CS/CS/SB 468 (Ch. 2013-66), CS/SB 1842 (Ch. 2013-101) [S1046 Detail]
Download: Florida-2013-S1046-Appropriations_Committee_Amendment_728946.html
Bill Title: Insurance
Status: 2013-04-26 - Laid on Table, companion bill(s) passed, see CS/HB 157 (Ch. 2013-190), CS/HB 1191 (Ch. 2013-209), CS/CS/HB 7125 (Ch. 2013-160), SB 356 (Ch. 2013-125), CS/CS/SB 468 (Ch. 2013-66), CS/SB 1842 (Ch. 2013-101) [S1046 Detail]
Download: Florida-2013-S1046-Appropriations_Committee_Amendment_728946.html
Florida Senate - 2013 COMMITTEE AMENDMENT Bill No. CS for SB 1046 Barcode 728946 LEGISLATIVE ACTION Senate . House Comm: RCS . 04/22/2013 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Appropriations (Richter) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete lines 1097 - 1115 4 and insert: 5 premium for employers that have exposure in more than one state, 6 an estimated annual standard premium in this state of $175,000, 7 and an estimated annual countrywide standard premium of $1 8 million or more for workers’ compensation. 9 Section 28. Subsection (2) of section 627.281, Florida 10 Statutes, is amended to read: 11 627.281 Appeal from rating organization; workers’ 12 compensation and employer’s liability insurance filings.— 13 (2) If such appeal is based upon the failure of the rating 14 organization to make a filing on behalf of such member or 15 subscriber which is based on a system of expense provisions 16 which differs, in accordance with the right granted in s. 17 627.072(3)627.072(2), from the system of expense provisions 18 included in a filing made by the rating organization, the office 19 shall, if it grants the appeal, order the rating organization to 20 make the requested filing for use by the appellant. In deciding 21 such appeal, the office shall apply the applicable standards set 22 forth in ss. 627.062 and 627.072. 23 Section 29. Paragraphs (gg), (hh), and (ii) are added to 24 subsection (6) of section 627.351, Florida Statutes, to read: 25 627.351 Insurance risk apportionment plans.— 26 (6) CITIZENS PROPERTY INSURANCE CORPORATION.— 27 (gg) At least once every 6 months, the corporation shall 28 submit a report to the office and the Insurance Consumer 29 Advocate disclosing: 30 1. The total number of requests received for residential 31 sinkhole loss coverage; 32 2. The total number of policies issued for residential 33 sinkhole loss coverage; 34 3. The total number of requests declined for residential 35 sinkhole loss coverage; and 36 4. The reasons for declining the requests for residential 37 sinkhole loss coverage. 38 (hh) The Legislature finds that it is in the public 39 interest that sinkhole loss claims are resolved by stabilizing 40 the land and structure and making repairs to the foundation of 41 the damaged structure. Therefore, a Citizens Sinkhole 42 Stabilization Repair Program is established by the corporation. 43 By March 31, 2014, any claim against a corporation policy that 44 covers residential sinkhole loss for which it is determined that 45 such loss has occurred must be included in and governed by the 46 repair program for the purpose of stabilizing the land and 47 structure and making repairs to the foundation. 48 1. As used in this paragraph, the terms: 49 a. “Engineering report” means the report issued pursuant to 50 s. 627.7073(1). 51 b. “Recommendation of the engineer” means the 52 recommendation of the engineer engaged by the corporation 53 pursuant to s. 627.7073(1)(a)5. 54 c. “Stabilization repairs” means stabilizing the land and 55 structure and making repairs to the foundation. 56 d. “Stabilization repair contractor” means a contractor who 57 stabilizes the land and structure and makes repairs to the 58 foundation of the damaged structure. 59 2. The repair program may be managed by the corporation or 60 a third-party administrator and, at a minimum, must include the 61 following components: 62 a. The corporation may not require the policyholder to 63 advance payment for repairs. 64 b. Stabilization repairs shall be conducted by 65 stabilization repair contractors selected from an approved 66 stabilization repair contractor pool procured by the corporation 67 pursuant to an open and transparent process. Each stabilization 68 repair contractor within the pool must be qualified and approved 69 by the corporation based upon criteria including the following 70 minimum requirements: 71 (I) The stabilization repair contractor must be certified 72 as a contractor pursuant s. 489.113(1). 73 (II) The stabilization repair contractor corporate entity 74 must demonstrate experience in stabilization of sinkhole 75 activity pursuant to requirements to be established by the 76 corporation. 77 (III) The stabilization repair contractor must demonstrate 78 capacity to be bonded and provide performance, surety, or other 79 bonds as described in this section which may be supplemented by 80 additional requirements as determined by the corporation. 81 (IV) The stabilization repair contractor must demonstrate 82 insurance coverage requirements, including, but not limited to, 83 commercial general liability coverage and workers’ compensation, 84 to be established by the corporation. 85 (V) The stabilization repair contractor must maintain a 86 valid drug-free workplace program. 87 (VI) Such other requirements as established by the 88 corporation. 89 c. Pursuant to the stabilization repair program, qualified 90 stabilization repair contractors shall be selected from the 91 approved stabilization repair contractor pool to stabilize the 92 land and structure and repair the foundation of the damaged 93 structure pursuant to a fixed-price contract between the 94 contractor and the corporation. Such contracts are not subject 95 to paragraph (6)(e) or s. 287.057. Pursuant to the terms of the 96 contract, the selected stabilization repair contractor is solely 97 responsible for the performance of all necessary stabilization 98 repairs specified in the engineering report and recommendations 99 of the engineer. 100 d. The corporation shall develop a standard stabilization 101 repair contract for the purpose of stabilizing the land and 102 structure and repairing the foundation of all properties within 103 the program. The contract must include the following minimum 104 requirements: 105 (I) The assigned stabilization repair contractor must agree 106 to make all stabilization repairs identified in the engineering 107 report based upon a fixed price. 108 (II) Each stabilization repair contractor must post a 109 payment bond in favor of the corporation as obligee for each 110 project assigned and must post a performance bond, secured by a 111 third-party surety, in favor of the corporation as obligee, in a 112 principal amount equal to the total cost of all fixed-price 113 contracts annually awarded to that contractor. 114 (III) In addition to the required performance bond, each 115 stabilization repair contractor must also provide a warranty, 116 secured by a third-party surety, to the policyholder which 117 covers all repairs provided by the stabilization repair 118 contractor for at least 5 years after completion of the 119 stabilization repairs. 120 (IV) Throughout the course of the stabilization repairs 121 performed by the contractor, the engineer shall monitor the 122 property and confirm that stabilization has been satisfactorily 123 completed and that no further stabilization is necessary to 124 remedy the damage identified in the engineering report and 125 recommendation of the engineer. 126 (V) If the engineer concludes that additional stabilization 127 repair is necessary to complete the repairs specified in the 128 engineering report and recommendations of the engineer, the 129 stabilization repair contractor must perform the additional 130 stabilization repairs at no cost to the corporation or the 131 policyholder. The contract between the corporation and the 132 contractor must contain provisions specifying the remedy and 133 sanctions for failing to perform such additional repairs. 134 e. The corporation shall enter into contracts to perform 135 repairs pursuant to a process that includes, but is not limited 136 to, the following requirements: 137 (I) Within 30 days after the completion of the engineering 138 report, the report shall be identified on a list which shall be 139 made available to all stabilization contractors. 140 (II) The corporation shall establish a selection process 141 for assigning stabilization repair contractors to perform 142 repairs for each property within the program. The selection 143 process must include: 144 (A) All stabilization repair contractors within the 145 stabilization repair contractor pool shall be provided with an 146 opportunity to submit an offer, that includes an itemized 147 statement of work, to perform the stabilization repairs 148 recommended in the engineering report. 149 (B) The corporation shall review the offers and provide the 150 policyholder with a list of stabilization repair contractors 151 from which the policyholder shall be provided a reasonable time, 152 not to exceed 30 days, to participate in the selection by 153 choosing the stabilization repair contractor from among those 154 qualified contractors on the list provided by the corporation. 155 (C) If the policyholder has not made such a selection 156 within the 30-day period described herein, the corporation may 157 make the selection. 158 (D) The corporation may reserve the right to include any or 159 all contractors on the list provided to the policyholder based 160 upon quality, cost-effectiveness, and such other criteria as the 161 corporation shall determine. 162 (III) If no stabilization repair contractor submits an 163 offer to perform the stabilization repairs for a property within 164 the program or all offers are above the policyholder’s policy 165 limit, the corporation may enter the property into the selection 166 process again or the corporation may pay the policyholder an 167 amount up to the policy limits on the structure. 168 f. The corporation is not responsible for serving as a 169 stabilization repair contractor. The corporation’s obligations 170 pursuant to the repair program are not an election to repair by 171 the corporation and therefore do not imply or result in a new 172 contractual relationship with the policyholder. 173 g. The corporation’s liability related to repair activity, 174 including stabilization repairs pursuant to the sinkhole 175 stabilization program and all other repairs to the structure in 176 accordance with the terms of the policy, is no greater than the 177 policy limits on the structure. 178 h. This section does not prohibit the corporation from 179 establishing a managed repair program for other repairs to the 180 structure in accordance with the terms of the policy. 181 i. If a dispute arises between the corporation and the 182 policyholder as to the nature or extent of stabilization repairs 183 to be conducted under the program, the sole remedy for resolving 184 such disputes shall be specific performance. 185 j. This section supersedes s. 627.707(5), except for 186 paragraph (5)(e). 187 3. The corporation shall pay for other repairs to the 188 structure and contents in accordance with the terms of the 189 policy. 190 (ii) A policy for residential property insurance issued by 191 the corporation must include a deductible amount applicable to 192 sinkhole losses, offered in amounts equal to 2 percent, 5 193 percent, and 10 percent of the policy dwelling limits, with 194 appropriate premium discounts offered with each deductible 195 amount. 196 Section 30. Section 627.3519, Florida Statutes, is amended 197 to read: 198 627.3519 Annual report of aggregate net probable maximum 199 losses, financing options, and potential assessments.—No later 200 than February 1 of each year, the Florida Hurricane Catastrophe 201 Fund and Citizens Property Insurance CorporationFinancial202Services Commissionshall provide to the Legislature and the 203 Financial Services Commission a report of their respectivethe204 aggregate net probable maximum losses, financing options, and 205 potential assessmentsof the Florida Hurricane Catastrophe Fund206and Citizens Property Insurance Corporation. The report of the 207 fund and the corporation must include theirtherespective 50 208 year, 100-year, and 250-year probable maximum lossesof the fund209and the corporation; analysis of all reasonable financing 210 strategies for each such probable maximum loss, including the 211 amount and term of debt instruments; specification of the 212 percentage assessments that would be needed to support each of 213 the financing strategies; and calculations of the aggregate 214 assessment burden on Florida property and casualty policyholders 215 for each of the probable maximum losses.The commission shall216require the fund and the corporation to provide the commission217with such data and analysis as the commission considers218necessary to prepare the report.219 220 ================= T I T L E A M E N D M E N T ================ 221 And the title is amended as follows: 222 Delete lines 119 - 125 223 and insert: 224 conforming a cross-reference; amending s. 627.351, 225 F.S.; requiring Citizens Property Insurance 226 Corporation to submit a biannual report on the number 227 of residential sinkhole policies issued and declined; 228 providing legislative intent; establishing a Citizens 229 Sinkhole Stabilization Repair Program for sinkhole 230 claims; providing definitions; providing program 231 components; specifying the corporation’s liability 232 with respect to sinkhole claims; requiring the 233 corporation to offer specified deductible amounts for 234 sinkhole loss coverage; amending s. 627.3519, F.S.; 235 requiring the Florida Hurricane Catastrophe Fund and 236 Citizens Property Insurance Corporation to provide an 237 annual report to the Legislature and the Financial 238 Services Commission of their respective aggregate net 239 probable maximum losses, financing options, and 240 potential assessments; amending s. 627.4133, F.S.; 241 increasing