Florida Senate - 2018 COMMITTEE AMENDMENT Bill No. SB 1168 Ì960354'Î960354 LEGISLATIVE ACTION Senate . House Comm: WD . 01/23/2018 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Banking and Insurance (Steube) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete line 195 4 and insert: 5 Section 5. (1) Within 60 days after the effective date of 6 this section, the Office of Insurance Regulation shall enter 7 into a contract with an independent consultant to calculate the 8 savings expected as a result of this act. The contract must 9 require the use of generally accepted actuarial techniques and 10 standards in determining the expected impact on losses and 11 expenses. By September 15, 2018, the office shall submit to the 12 Governor, the President of the Senate, and the Speaker of the 13 House of Representatives a report concerning the results of the 14 independent consultant’s calculations. 15 (2) By October 1, 2018, an insurer writing property 16 insurance in this state shall make a rate filing with the Office 17 of Insurance Regulation. A rate certification does not satisfy 18 this requirement. If the insurer requests a rate in excess of a 19 10 percent reduction as applied to the current rate in its 20 overall base rate for property insurance, the insurer must 21 include in its rate filing a detailed explanation of the reasons 22 for its failure to achieve a 10 percent reduction. 23 (3) By January 1, 2020, an insurer writing property 24 insurance in this state shall make a rate filing with the Office 25 of Insurance Regulation. A rate certification does not satisfy 26 this requirement. If the insurer requests a rate in excess of a 27 25 percent reduction as applied to the rate in effect as of July 28 1, 2018, in its overall base rate for property insurance since 29 July 1, 2018, the insurer must include in its rate filing a 30 detailed explanation of the reasons for its failure to achieve a 31 25 percent reduction. 32 (4) If an insurer fails to provide the detailed explanation 33 required by subsection (2) or subsection (3), the Office of 34 Insurance Regulation must order the insurer to stop writing new 35 property insurance policies in this state until it provides the 36 required explanation. 37 (5) The sum of $200,000 of nonrecurring revenue is 38 appropriated from the Insurance Regulatory Trust Fund to the 39 Office of Insurance Regulation for the purpose of implementing 40 the requirements of subsection (1) during the 2017-2018 fiscal 41 year. Any unexpended balance of the appropriation at the end of 42 the fiscal year shall be carried forward and be available for 43 expenditure for that purpose during the 2018-2019 fiscal year. 44 Notwithstanding s. 287.057, Florida Statutes, the office may 45 retain an independent consultant to implement the requirements 46 of subsection (1) without a competitive solicitation. 47 (6) This section shall take effect upon this act becoming a 48 law. 49 Section 6. Except as otherwise expressly provided in this 50 act and except for this section, which shall take effect upon 51 this act becoming a law, this act shall take effect July 1, 52 2018. 53 54 ================= T I T L E A M E N D M E N T ================ 55 And the title is amended as follows: 56 Delete line 45 57 and insert: 58 applicability; requiring the office, within a 59 specified timeframe, to contract with an independent 60 consultant to calculate expected savings as a result 61 of this act; requiring the contract to require the use 62 of certain actuarial techniques and standards; 63 requiring the office to submit a certain report to the 64 Governor and the Legislature by a specified date; 65 requiring property insurers to make rate filings with 66 the office by specified dates; providing construction; 67 requiring an insurer to include a certain explanation 68 in its rate filing under certain circumstances; 69 requiring the office to order an insurer that fails to 70 provide such explanation to stop writing new property 71 insurance policies until it provides the explanation; 72 providing an appropriation; authorizing the office to 73 retain the consultant without a competitive 74 solicitation; providing effective dates.