| 1 | A bill to be entitled |
| 2 | An act relating to insurance rate incentives for carbon |
| 3 | monoxide detectors and alarms; creating s. 627.06295, |
| 4 | F.S.; providing legislative intent; requiring residential |
| 5 | property insurance rate filings to include certain rate |
| 6 | incentives for installing and maintaining carbon monoxide |
| 7 | detectors and alarms under certain circumstances; |
| 8 | requiring the Office of Insurance Regulation to develop a |
| 9 | proposed method for insurers to establish such incentives; |
| 10 | requiring the Financial Services Commission to adopt rules |
| 11 | for insurers to provide such incentives; providing an |
| 12 | effective date. |
| 13 |
|
| 14 | Be It Enacted by the Legislature of the State of Florida: |
| 15 |
|
| 16 | Section 1. Section 627.06295, Florida Statutes, is created |
| 17 | to read: |
| 18 | 627.06295 Residential property insurance; rate filings.-- |
| 19 | (1) It is the intent of the Legislature that insurers must |
| 20 | provide savings to consumers who install and maintain carbon |
| 21 | monoxide detectors and alarms in their properties to prevent |
| 22 | loss of life through carbon monoxide inhalation. A rate filing |
| 23 | for residential property insurance must include actuarially |
| 24 | reasonable discounts, credits, or other rate differentials, or |
| 25 | appropriate reductions in deductibles, for properties on which |
| 26 | carbon monoxide detectors and alarms have been installed and |
| 27 | maintained. Credits, discounts, or other rate differentials, or |
| 28 | appropriate reductions in deductibles, for installation and |
| 29 | maintenance of carbon monoxide detectors and alarms that meet |
| 30 | the minimum requirements of the Florida Building Code must be |
| 31 | included in the rate filing. All insurance companies must make a |
| 32 | rate filing which includes the credits, discounts, or other rate |
| 33 | differentials or reductions in deductibles by February 28, 2010. |
| 34 | By October 1, 2009, the office shall reevaluate the discounts, |
| 35 | credits, other rate differentials, and appropriate reductions in |
| 36 | deductibles for installation and maintenance of carbon monoxide |
| 37 | detectors and alarms that meet the minimum requirements of the |
| 38 | Florida Building Code, based upon actual experience or any other |
| 39 | loss relativity studies available to the office. The office |
| 40 | shall determine the discounts, credits, other rate |
| 41 | differentials, and appropriate reductions in deductibles that |
| 42 | reflect the full actuarial value of such revaluation, which may |
| 43 | be used by insurers in rate filings. |
| 44 | (2) By February 1, 2011, the Office of Insurance |
| 45 | Regulation, in consultation with the Department of Financial |
| 46 | Services and the Department of Community Affairs, shall develop |
| 47 | and make publicly available a proposed method for insurers to |
| 48 | establish discounts, credits, or other rate differentials for |
| 49 | carbon monoxide detectors and alarms. By October 1, 2011, the |
| 50 | Financial Services Commission shall adopt rules requiring |
| 51 | insurers to make rate filings for residential property insurance |
| 52 | which revise insurers' discounts, credits, or other rate |
| 53 | differentials for installation and maintenance of carbon |
| 54 | monoxide detectors and alarms. The rules shall allow a period of |
| 55 | at least 2 years after the effective date of the revised |
| 56 | discounts, credits, or other rate differentials for a property |
| 57 | owner to obtain an inspection or otherwise qualify for the |
| 58 | revised discounts, credits, or other rate differentials, during |
| 59 | which time the insurer shall continue to apply the discount, |
| 60 | credit, or rate differential that was applied immediately prior |
| 61 | to the effective date of the revised discount, credit, or rate |
| 62 | differential. |
| 63 | Section 2. This act shall take effect July 1, 2009. |