Bill Amendment: FL S1274 | 2014 | Regular Session
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: Citizens Property Insurance Corporation
Status: 2014-04-28 - Laid on Table, companion bill(s) passed, see CS/CS/HB 1089 (Ch. 2014-140) [S1274 Detail]
Download: Florida-2014-S1274-Senate_Committee_Amendment_452718.html
Bill Title: Citizens Property Insurance Corporation
Status: 2014-04-28 - Laid on Table, companion bill(s) passed, see CS/CS/HB 1089 (Ch. 2014-140) [S1274 Detail]
Download: Florida-2014-S1274-Senate_Committee_Amendment_452718.html
Florida Senate - 2014 COMMITTEE AMENDMENT Bill No. CS for SB 1274 Ì452718:Î452718 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— following: 1 Senate Amendment (with title amendment) 2 3 Delete everything after the enacting clause 4 and insert: 5 Section 1. Paragraph (a) 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 (a) The public purpose of this subsection is to ensure that 10 there is an orderly market for property insurance for residents 11 and businesses of this state. 12 1. The Legislature finds that private insurers are 13 unwilling or unable to provide affordable property insurance 14 coverage in this state to the extent sought and needed. The 15 absence of affordable property insurance threatens the public 16 health, safety, and welfare andlikewise threatensthe economic 17 health of the state. The state therefore has a compelling public 18 interest and a public purpose to assist in assuring that 19 property in the state is insured and that it is insured at 20 affordable rates so as to facilitate the remediation, 21 reconstruction, and replacement of damaged or destroyed property 22 in order to reduce or avoid the negative effects onotherwise23resulting tothe public health, safety, and welfare, to the 24 economy of the state, and to the revenues of the state and local 25 governments which are needed to provide for the public welfare. 26 It is necessary, therefore, to provide affordable property 27 insurance to applicants who are in good faith entitled to 28 procure insurance through the voluntary market but are unable to 29 do so. The Legislature intends, therefore, that affordable 30 property insurance be provided and that it continue to be 31 provided, as long as necessary, through Citizens Property 32 Insurance Corporation, a government entity that is an integral 33 part of the state,andthat isnot a private insurance company. 34 To that end, the corporation shall strive to increase the 35 availability of affordable property insurance in this state, 36 while achieving efficiencies and economies, and while providing 37 service to policyholders, applicants, and agents which is no 38 less than the quality generally provided in the voluntary 39 market, for the achievement of the foregoing public purposes. 40 Because it is essential for this government entity to have the 41 maximum financial resources to pay claims following a 42 catastrophic hurricane, it is further the intent of the 43 Legislature that the corporation continue to be an integral part 44 of the state,andthat the income of the corporation be exempt 45 from federal income taxation, and that interest on the debt 46 obligations issued by the corporation be exempt from federal 47 income taxation. 48 2. The Residential Property and Casualty Joint Underwriting 49 Association originally created by this statute shall be known as 50 the Citizens Property Insurance Corporation. The corporation 51 shall provide insurance for residential and commercial property, 52 for applicants who are entitled, but, in good faith, are unable 53 to procure insurance through the voluntary market. The 54 corporation shall operate pursuant to a plan of operation 55 approved by order of the Financial Services Commission. The plan 56 is subject to continuous review by the commission. The 57 commission may, by order, withdraw approval of all or part of a 58 plan if the commission determines that conditions have changed 59 since approval was granted and that the purposes of the plan 60 require changes in the plan. For the purposes of this 61 subsection, residential coverage includes both personal lines 62 residential coverage, which consists of the type of coverage 63 provided by homeowner’s, mobile home owner’s, dwelling, 64 tenant’s, condominium unit owner’s, and similar policies; and 65 commercial lines residential coverage, which consists of the 66 type of coverage provided by condominium association, apartment 67 building, and similar policies. 68 3. With respect to coverage for personal lines residential 69 structures: 70 a. Effective January 1, 2014, a structure that has a 71 dwelling replacement cost of $1 million or more, or a single 72 condominium unit that has a combined dwelling and contents 73 replacement cost of $1 million or more is not eligible for 74 coverage by the corporation. Such dwellings insured by the 75 corporation on December 31, 2013, may continue to be covered by 76 the corporation until the end of the policy term. The office 77 shall approve the method used by the corporation for valuing the 78 dwelling replacement costs undercost for the purposes ofthis 79 subparagraph. If a policyholder is insured by the corporation 80 before being determined to be ineligible pursuant to this 81 subparagraph and such policyholder files a lawsuit challenging 82 the determination, the policyholder may remain insured by the 83 corporation until the conclusion of the litigation. 84 b. Effective January 1, 2015, a structure that has a 85 dwelling replacement cost of $900,000 or more, or a single 86 condominium unit that has a combined dwelling and contents 87 replacement cost of $900,000 or more, is not eligible for 88 coverage by the corporation. Such dwellings insured by the 89 corporation on December 31, 2014, may continue to be covered by 90 the corporation only until the end of the policy term. 91 c. Effective January 1, 2016, a structure that has a 92 dwelling replacement cost of $800,000 or more, or a single 93 condominium unit that has a combined dwelling and contents 94 replacement cost of $800,000 or more, is not eligible for 95 coverage by the corporation. Such dwellings insured by the 96 corporation on December 31, 2015, may continue to be covered by 97 the corporation until the end of the policy term. 98 d. Effective January 1, 2017, a structure that has a 99 dwelling replacement cost of $700,000 or more, or a single 100 condominium unit that has a combined dwelling and contents 101 replacement cost of $700,000 or more, is not eligible for 102 coverage by the corporation. Such dwellings insured by the 103 corporation on December 31, 2016, may continue to be covered by 104 the corporation until the end of the policy term. 105 106 The requirements of sub-subparagraphs b.-d. do not apply in 107 counties where the office determines there is not a reasonable 108 degree of competition. In such counties a personal lines 109 residential structure that has a dwelling replacement cost of 110 less than $1 million, or a single condominium unit that has a 111 combined dwelling and contents replacement cost of less than $1 112 million, is eligible for coverage by the corporation. 113 4. It is the intent of the Legislature that policyholders, 114 applicants, and agents of the corporation receive service and 115 treatment of the highest possible level but never less than that 116 generally provided in the voluntary market. It is also intended 117 that the corporation be held to service standards no less than 118 those applied to insurers in the voluntary market by the office 119 with respect to responsiveness, timeliness, customer courtesy, 120 and overall dealings with policyholders, applicants, or agents 121 of the corporation. 122 5.a. Effective January 1, 2009, a personal lines 123 residential structure that is located in the “wind-borne debris 124 region,” as defined in s. 1609.2, International Building Code 125 (2006), and that has an insured value on the structure of 126 $750,000 or more is not eligible for coverage by the corporation 127 unless the structure has opening protections as required under 128 the Florida Building Code for a newly constructed residential 129 structure in that area. A residential structure is deemed to 130 comply with this sub-subparagraphsubparagraphif it has 131 shutters or opening protections on all openings and if such 132 opening protections complied with the Florida Building Code at 133 the time they were installed. 134 b. Any major structure as defined in s. 161.54(6)(a) for 135 which a permit is applied on or after July 1, 20152014, for new 136 construction or substantial improvement as defined in s. 161.54 137s. 161.54(12)is not eligible for coverage by the corporation if 138 the structure is seaward of the coastal construction control 139 line established pursuant to s. 161.053 or is within the Coastal 140 Barrier Resources System as designated by 16 U.S.C. ss. 3501 141 3510. 142 6. With respect to wind-only coverage for commercial lines 143 residential condominiums, effective July 1, 2014, a condominium 144 shall be deemed ineligible for coverage if 50 percent or more of 145 the units are rented more than eight times in a calendar year 146 for a rental agreement period of less than 30 days. 147 148 ================= T I T L E A M E N D M E N T ================ 149 And the title is amended as follows: 150 Delete everything before the enacting clause 151 and insert: 152 A bill to be entitled 153 An act relating to Citizens Property Insurance 154 Corporation; amending s. 627.351, F.S.; providing that 155 a condominium association is ineligible for commercial 156 residential wind-only coverage under certain 157 conditions; providing an effective date.