CS/CS/HB 931 — Operations of the Citizens Property Insurance Corporation
by Regulatory Affairs Committee; Insurance and Banking Subcommittee; and Reps. Passidomo, Rodriguez J., and others (CS/CS/SB 1630 by Ethics and Elections Committee; Banking and Insurance Committee; and Senator Flores)
This summary is provided for information only and does not represent the opinion of any Senator, Senate Officer, or Senate Office.
Prepared by: Banking and Insurance Committee (BI)
The bill make several changes to Citizens Property Insurance Corporation.
The bill requires Citizens to make changes, by January 1, 2017, to their plan of operation as it relates to take-out agreements made with private insurers. These changes require:
- Citizens to publish cycles for which take-out offers can be made.
- Private insurers to offer similar coverage comparable to Citizens and provide an estimate of premium.
- Private insurers must include in their take-out offers a comparison of coverages and rate between the insurer’s policy and Citizens policy.
- Citizens to compile a list of companies that have shown interest in depopulating a policy and to make available to the agent of record.
The bill also:
- Requires that agents who write business for Citizens must also hold an appointment with an admitted carrier that is currently writing or renewing policies in the state.
- Allows the consumer representative to the Citizens Board of Governors to be afforded the same conflict of interest exemption as other board members.
- Allows Citizens to share underwriting and claims files data with authorized entities for the development of takeout plans or rating plans. General lines agents may not use such data to directly solicit policyholders.
- Allows Citizens to use a combination of the public model and private models when calculating the windstorm portion of rates.
If approved by the Governor, these provisions take effect July 1, 2016.
Vote: Senate 36-1; House 110-2