Bill Text: FL S0096 | 2013 | Regular Session | Introduced
Bill Title: Citizens Property Insurance Corporation Rates
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2013-05-03 - Died in Banking and Insurance [S0096 Detail]
Download: Florida-2013-S0096-Introduced.html
Florida Senate - 2013 SB 96 By Senator Flores 37-00004-13 201396__ 1 A bill to be entitled 2 An act relating to Citizens Property Insurance 3 Corporation rates; reordering and amending s. 627.351, 4 F.S.; providing that any restrictions on annual rate 5 increases apply to both new and renewal policies; 6 deleting obsolete provisions; providing an effective 7 date. 8 9 Be It Enacted by the Legislature of the State of Florida: 10 11 Section 1. Paragraph (n) of subsection (6) of section 12 627.351, Florida Statutes, is reordered and amended to read: 13 627.351 Insurance risk apportionment plans.— 14 (6) CITIZENS PROPERTY INSURANCE CORPORATION.— 15 (n)1.Rates for coverage provided by the corporation must 16 be actuarially sound and subject to s. 627.062, except as 17 otherwise provided in this paragraph. 18 1. The corporation shall file its recommended rates with 19 the office at least annually. The corporation shall provide any 20 additional information regarding the rates which the office 21 requires. The office shall consider the recommendations of the 22 board and issue a final order establishing the rates for the 23 corporation within 45 days after the recommended rates are 24 filed. The corporation may not pursue an administrative 25 challenge or judicial review of the final order of the office. 26 2. In addition to the rates otherwise determined pursuant 27 to this paragraph, the corporation shall impose and collect an 28 amount equal to the premium tax provided in s. 624.509 to 29 augment the financial resources of the corporation. 30 3. After the public hurricane loss-projection model under 31 s. 627.06281 has been found to be accurate and reliable by the 32 Florida Commission on Hurricane Loss Projection Methodology, the 33 model shall serve as the minimum benchmark for determining the 34 windstorm portion of the corporation’s rates. This subparagraph 35 does not require or allow the corporation to adopt rates lower 36 than the rates otherwise required or allowed by this paragraph. 374. The rate filings for the corporation which were approved38by the office and took effect January 1, 2007, are rescinded,39except for those rates that were lowered. As soon as possible,40the corporation shall begin using the lower rates that were in41effect on December 31, 2006, and provide refunds to42policyholders who paid higher rates as a result of that rate43filing. The rates in effect on December 31, 2006, remain in44effect for the 2007 and 2008 calendar years except for any rate45change that results in a lower rate. The next rate change that46may increase rates shall take effect pursuant to a new rate47filing recommended by the corporation and established by the48office, subject to this paragraph.49 4.5.Beginning on July 15, 2009, and annually thereafter,50 The corporation shall annuallymustmake a recommended 51 actuarially sound rate filing for each personal and commercial 52 line of business it writes, to be effective no earlier than53January 1, 2010. 54 5.6.Beginning on or after January 1, 2010, and55 Notwithstanding the board’s recommended rates and the office’s 56 final order regarding the corporation’s filed rates under 57 subparagraph 1., the corporation shall annually implement a rate 58 increase thatwhich, except for sinkhole coverage, does not 59 exceed 10 percent for any single policy, new or existing, issued 60 by the corporation, excluding coverage changes and surcharges. 61 6.7.The corporation may also implement an increase to 62 reflect the effect on the corporation of the cash buildup factor 63 pursuant to s. 215.555(5)(b). 64 7.8.The corporation’s implementation of rates as 65 prescribed in subparagraph 5.6.shall cease for any line of 66 business written by the corporation upon the corporation’s 67 implementation of actuarially sound rates. Thereafter, the 68 corporation shall annually make a recommended actuarially sound 69 rate filing for each commercial and personal line of business 70 the corporation writes. 71 Section 2. This act shall take effect upon becoming a law.