Bill Text: FL H0885 | 2011 | Regular Session | Comm Sub

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Bill Title: Residential Property Insurance

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [H0885 Detail]

Download: Florida-2011-H0885-Comm_Sub.html

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CS/HB 885

1	A bill to be entitled
2	An act relating to residential property insurance;
3	amending s. 627.062, F.S.; revising costs to be included
4	in a rate filing; revising the overall premium increase
5	for a rate filing; revising the information that must be
6	included in a rate filing relating to reinsurance;
7	deleting a provision prohibiting an insurer from
8	implementing a rate increase within 6 months before it
9	makes certain rate filings; deleting a provision
10	prohibiting an insurer from filing for a rate increase
11	within 6 months after it makes certain rate filings;
12	providing an effective date.
13
14	Be It Enacted by the Legislature of the State of Florida:
15
16	Section 1.  Paragraph (k) of subsection (2) of section
17	627.062, Florida Statutes, is amended to read:
18	627.062  Rate standards.-
19	(2)  As to all such classes of insurance:
20	(k)1.  A residential property An insurer may make a
21	separate filing limited solely to an adjustment of its rates for
22	reinsurance, the cost of financing products used as a
23	replacement for reinsurance, or financing costs incurred in the
24	purchase of reinsurance, or financing products to replace or
25	finance the payment of the amount covered by the Temporary
26	Increase in Coverage Limits (TICL) portion of the Florida
27	Hurricane Catastrophe Fund including replacement reinsurance for
28	the TICL reductions made pursuant to s. 215.555(17)(e); the
29	actual cost paid due to the application of the TICL premium
30	factor pursuant to s. 215.555(17)(f); and the actual cost paid
31	due to the application of the cash build-up factor pursuant to
32	s. 215.555(5)(b) if the insurer:
33	a.  Elects to purchase financing products such as a
34	liquidity instrument or line of credit, in which case the cost
35	included in the filing for the liquidity instrument or line of
36	credit may not result in a premium increase exceeding 3 percent
37	for any individual policyholder. All costs contained in the
38	filing may not result in an overall premium increase of more
39	than 15 10 percent for any individual policyholder.
40	b.  Includes in the filing a copy of all of its
41	reinsurance, liquidity instrument, or line of credit contracts;
42	proof of the billing or payment for the contracts; and the
43	calculation upon which the proposed rate change is based
44	demonstrating demonstrates that the costs meet the criteria of
45	this section and are not loaded for expenses or profit for the
46	insurer making the filing.
47	c.  Includes no other changes to its rates in the filing.
48	d.  Has not implemented a rate increase within the 6 months
49	immediately preceding the filing.
50	e.  Does not file for a rate increase under any other
51	paragraph within 6 months after making a filing under this
52	paragraph.
53	c.f.  An insurer that purchases reinsurance or financing
54	products from an affiliated company may make a separate filing
55	in compliance with this paragraph does so only if the costs for
56	such reinsurance or financing products are charged at or below
57	charges made for comparable coverage by nonaffiliated reinsurers
58	or financial entities making such coverage or financing products
59	available in this state.
60	2.  An insurer may only make only one filing per in any 12-
61	month period under this paragraph.
62	3.  An insurer that elects to implement a rate change under
63	this paragraph must file its rate filing with the office at
64	least 45 days before the effective date of the rate change.
65	After an insurer submits a complete filing that meets all of the
66	requirements of this paragraph, the office has 45 days after the
67	date of the filing to review the rate filing and determine if
68	the rate is excessive, inadequate, or unfairly discriminatory.
69
70	The provisions of this subsection shall not apply to workers'
71	compensation and employer's liability insurance and to motor
72	vehicle insurance.
73	Section 2.  This act shall take effect upon becoming a law.

CODING: Words stricken are deletions; words underlined are additions.