Bill Text: FL H0885 | 2011 | Regular Session | Comm Sub
Bill Title: Residential Property Insurance
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [H0885 Detail]
Download: Florida-2011-H0885-Comm_Sub.html
| CS/HB 885 |
| 1 | |
| 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 |
| 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, |
| 24 | purchase of reinsurance, |
| 25 | |
| 26 | |
| 27 | |
| 28 | |
| 29 | |
| 30 | |
| 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 |
| 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 |
| 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 |
| 45 | this section |
| 46 | |
| 47 | |
| 48 | |
| 49 | |
| 50 | |
| 51 | |
| 52 | |
| 53 | c. |
| 54 | products from an affiliated company may make a separate filing |
| 55 | |
| 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 |
| 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 |
