Florida Senate - 2011                        COMMITTEE AMENDMENT
       Bill No. CS for CS for SB 408
                                Barcode 494450                          
                              LEGISLATIVE ACTION                        
                    Senate             .             House              

       The Committee on Budget (Wise) recommended the following:
    1         Senate Amendment (with title amendment)
    3         Delete lines 1362 - 1366
    4  and insert:
    5         Section 15. Paragraphs (a), (b), (c), (d), (v), and (y) of
    6  subsection (6) of section 627.351, Florida Statutes, are amended
    7  to read:
    8         627.351 Insurance risk apportionment plans.—
   10         (a)1. It is The public purpose of this subsection is to
   11  ensure the existence of an orderly market for property insurance
   12  for Floridians and Florida businesses. The Legislature finds
   13  that private insurers are unwilling or unable to provide
   14  affordable property insurance coverage in this state to the
   15  extent sought and needed. The absence of affordable property
   16  insurance threatens the public health, safety, and welfare and
   17  likewise threatens the economic health of the state. The state
   18  therefore has a compelling public interest and a public purpose
   19  to assist in assuring that property in the state is insured and
   20  that it is insured at affordable rates so as to facilitate the
   21  remediation, reconstruction, and replacement of damaged or
   22  destroyed property in order to reduce or avoid the negative
   23  effects otherwise resulting to the public health, safety, and
   24  welfare, to the economy of the state, and to the revenues of the
   25  state and local governments which are needed to provide for the
   26  public welfare. It is necessary, therefore, to provide
   27  affordable property insurance to applicants who are in good
   28  faith entitled to procure insurance through the voluntary market
   29  but are unable to do so. The Legislature intends by this
   30  subsection that affordable property insurance be provided and
   31  that it continue to be provided, as long as necessary, through
   32  Citizens Property Insurance Corporation, a government entity
   33  that is an integral part of the state, and that is not a private
   34  insurance company. To that end, Citizens Property Insurance
   35  Corporation shall strive to increase the availability of
   36  affordable property insurance in this state, while achieving
   37  efficiencies and economies, and while providing service to
   38  policyholders, applicants, and agents which is no less than the
   39  quality generally provided in the voluntary market, for the
   40  achievement of the foregoing public purposes. Because it is
   41  essential for this government entity to have the maximum
   42  financial resources to pay claims following a catastrophic
   43  hurricane, it is the intent of the Legislature that Citizens
   44  Property Insurance Corporation continue to be an integral part
   45  of the state and that the income of the corporation be exempt
   46  from federal income taxation and that interest on the debt
   47  obligations issued by the corporation be exempt from federal
   48  income taxation.
   49         2. As of July 1, 2002, the Residential Property and
   50  Casualty Joint Underwriting Association originally created by
   51  this statute shall be known, as of July 1, 2002, as the Citizens
   52  Property Insurance Corporation. The corporation shall provide
   53  insurance for residential and commercial property insurance, for
   54  applicants who are in good faith entitled, but are unable, to
   55  procure insurance through the voluntary market. The corporation
   56  shall operate pursuant to a plan of operation approved by order
   57  of the Financial Services Commission. The plan is subject to
   58  continuous review by the commission. The commission may, by
   59  order, withdraw approval of all or part of a plan if the
   60  commission determines that conditions have changed since
   61  approval was granted and that the purposes of the plan require
   62  changes in the plan. The corporation shall continue to operate
   63  pursuant to the plan of operation approved by the Office of
   64  Insurance Regulation until October 1, 2006. For the purposes of
   65  this subsection, residential coverage includes both personal
   66  lines residential coverage, which consists of the type of
   67  coverage provided by homeowner’s, mobile home owner’s, dwelling,
   68  tenant’s, condominium unit owner’s, and similar policies, and
   69  commercial lines residential coverage, which consists of the
   70  type of coverage provided by condominium association, apartment
   71  building, and similar policies.
   72         3. Effective January 1, 2009, a personal lines residential
   73  structure that has a dwelling replacement cost of $2 million or
   74  more, or a single condominium unit that has a combined dwelling
   75  and content replacement cost of $2 million or more is not
   76  eligible for coverage by the corporation. Such dwellings insured
   77  by the corporation on December 31, 2008, may continue to be
   78  covered by the corporation until the end of the policy term.
   79  However, such dwellings that are insured by the corporation and
   80  become ineligible for coverage due to the provisions of this
   81  subparagraph may reapply and obtain coverage if the property
   82  owner provides the corporation with a sworn affidavit from one
   83  or more insurance agents, on a form provided by the corporation,
   84  stating that the agents have made their best efforts to obtain
   85  coverage and that the property has been rejected for coverage by
   86  at least one authorized insurer and at least three surplus lines
   87  insurers. If such conditions are met, the dwelling may be
   88  insured by the corporation for up to 3 years, after which time
   89  the dwelling is ineligible for coverage. The office shall
   90  approve the method used by the corporation for valuing the
   91  dwelling replacement cost for the purposes of this subparagraph.
   92  If a policyholder is insured by the corporation before prior to
   93  being determined to be ineligible pursuant to this subparagraph
   94  and such policyholder files a lawsuit challenging the
   95  determination, the policyholder may remain insured by the
   96  corporation until the conclusion of the litigation.
   97         4. It is the intent of the Legislature that policyholders,
   98  applicants, and agents of the corporation receive service and
   99  treatment of the highest possible level but never less than that
  100  generally provided in the voluntary market. It is also is
  101  intended that the corporation be held to service standards no
  102  less than those applied to insurers in the voluntary market by
  103  the office with respect to responsiveness, timeliness, customer
  104  courtesy, and overall dealings with policyholders, applicants,
  105  or agents of the corporation.
  106         5. Effective January 1, 2009, a personal lines residential
  107  structure that is located in the “wind-borne debris region,” as
  108  defined in s. 1609.2, International Building Code (2006), and
  109  that has an insured value on the structure of $750,000 or more
  110  is not eligible for coverage by the corporation unless the
  111  structure has opening protections as required under the Florida
  112  Building Code for a newly constructed residential structure in
  113  that area. A residential structure shall be deemed to comply
  114  with the requirements of this subparagraph if it has shutters or
  115  opening protections on all openings and if such opening
  116  protections complied with the Florida Building Code at the time
  117  they were installed.
  119  ================= T I T L E  A M E N D M E N T ================
  120         And the title is amended as follows:
  121         Delete line 112
  122  and insert:
  123         by the act; amending s. 627.351, F.S.; deleting an
  124         obsolete provision; deleting a limitation that
  125         prohibits Citizens Property Insurance Corporation from
  126         insuring certain structures located in the wind-borne
  127         debris region; renaming the