HB 7181

A bill to be entitled
2An act relating to repeal of the correlation of mitigation
3discounts, credits, or other rate differentials to the
4uniform home grading scale; amending s. 627.0629, F.S.;
5repealing an obsolete provision relating to a method for
6correlating mitigation discounts, credits, or other rate
7differentials to the uniform home grading scale; repealing
8specified rulemaking authority of the Financial Services
9Commission relating to the uniform home grading scale;
10repealing a provision requiring discounts, credits, or
11other rate differentials to supersede other discounts,
12credits, or rate differentials; providing an effective
15Be It Enacted by the Legislature of the State of Florida:
17     Section 1.  Subsection (1) of section 627.0629, Florida
18Statutes, is amended to read:
19     627.0629  Residential property insurance; rate filings.-
20     (1)(a)  It is the intent of the Legislature that insurers
21must provide savings to consumers who install or implement
22windstorm damage mitigation techniques, alterations, or
23solutions to their properties to prevent windstorm losses. A
24rate filing for residential property insurance must include
25actuarially reasonable discounts, credits, or other rate
26differentials, or appropriate reductions in deductibles, for
27properties on which fixtures or construction techniques
28demonstrated to reduce the amount of loss in a windstorm have
29been installed or implemented. The fixtures or construction
30techniques shall include, but not be limited to, fixtures or
31construction techniques which enhance roof strength, roof
32covering performance, roof-to-wall strength, wall-to-floor-to-
33foundation strength, opening protection, and window, door, and
34skylight strength. Credits, discounts, or other rate
35differentials, or appropriate reductions in deductibles, for
36fixtures and construction techniques which meet the minimum
37requirements of the Florida Building Code must be included in
38the rate filing. All insurance companies must make a rate filing
39which includes the credits, discounts, or other rate
40differentials or reductions in deductibles by February 28, 2003.
41By July 1, 2007, the office shall reevaluate the discounts,
42credits, other rate differentials, and appropriate reductions in
43deductibles for fixtures and construction techniques that meet
44the minimum requirements of the Florida Building Code, based
45upon actual experience or any other loss relativity studies
46available to the office. The office shall determine the
47discounts, credits, other rate differentials, and appropriate
48reductions in deductibles that reflect the full actuarial value
49of such revaluation, which may be used by insurers in rate
51     (b)  By February 1, 2011, the Office of Insurance
52Regulation, in consultation with the Department of Financial
53Services and the Department of Community Affairs, shall develop
54and make publicly available a proposed method for insurers to
55establish discounts, credits, or other rate differentials for
56hurricane mitigation measures which directly correlate to the
57numerical rating assigned to a structure pursuant to the uniform
58home grading scale adopted by the Financial Services Commission
59pursuant to s. 215.55865, including any proposed changes to the
60uniform home grading scale. By October 1, 2011, the commission
61shall adopt rules requiring insurers to make rate filings for
62residential property insurance which revise insurers' discounts,
63credits, or other rate differentials for hurricane mitigation
64measures so that such rate differentials correlate directly to
65the uniform home grading scale. The rules may include such
66changes to the uniform home grading scale as the commission
67determines are necessary, and may specify the minimum required
68discounts, credits, or other rate differentials. Such rate
69differentials must be consistent with generally accepted
70actuarial principles and wind-loss mitigation studies. The rules
71shall allow a period of at least 2 years after the effective
72date of the revised mitigation discounts, credits, or other rate
73differentials for a property owner to obtain an inspection or
74otherwise qualify for the revised credit, during which time the
75insurer shall continue to apply the mitigation credit that was
76applied immediately prior to the effective date of the revised
77credit. Discounts, credits, and other rate differentials
78established for rate filings under this paragraph shall
79supersede, after adoption, the discounts, credits, and other
80rate differentials included in rate filings under paragraph (a).
81     Section 2.  This act shall take effect July 1, 2011.

CODING: Words stricken are deletions; words underlined are additions.