HB 7181

1	A bill to be entitled
2	An act relating to repeal of the correlation of mitigation
3	discounts, credits, or other rate differentials to the
4	uniform home grading scale; amending s. 627.0629, F.S.;
5	repealing an obsolete provision relating to a method for
6	correlating mitigation discounts, credits, or other rate
7	differentials to the uniform home grading scale; repealing
8	specified rulemaking authority of the Financial Services
9	Commission relating to the uniform home grading scale;
10	repealing a provision requiring discounts, credits, or
11	other rate differentials to supersede other discounts,
12	credits, or rate differentials; providing an effective
13	date.
14
15	Be It Enacted by the Legislature of the State of Florida:
16
17	Section 1.  Subsection (1) of section 627.0629, Florida
18	Statutes, is amended to read:
19	627.0629  Residential property insurance; rate filings.-
20	(1)(a)  It is the intent of the Legislature that insurers
21	must provide savings to consumers who install or implement
22	windstorm damage mitigation techniques, alterations, or
23	solutions to their properties to prevent windstorm losses. A
24	rate filing for residential property insurance must include
25	actuarially reasonable discounts, credits, or other rate
26	differentials, or appropriate reductions in deductibles, for
27	properties on which fixtures or construction techniques
28	demonstrated to reduce the amount of loss in a windstorm have
29	been installed or implemented. The fixtures or construction
30	techniques shall include, but not be limited to, fixtures or
31	construction techniques which enhance roof strength, roof
32	covering performance, roof-to-wall strength, wall-to-floor-to-
33	foundation strength, opening protection, and window, door, and
34	skylight strength. Credits, discounts, or other rate
35	differentials, or appropriate reductions in deductibles, for
36	fixtures and construction techniques which meet the minimum
37	requirements of the Florida Building Code must be included in
38	the rate filing. All insurance companies must make a rate filing
39	which includes the credits, discounts, or other rate
40	differentials or reductions in deductibles by February 28, 2003.
41	By July 1, 2007, the office shall reevaluate the discounts,
42	credits, other rate differentials, and appropriate reductions in
43	deductibles for fixtures and construction techniques that meet
44	the minimum requirements of the Florida Building Code, based
45	upon actual experience or any other loss relativity studies
46	available to the office. The office shall determine the
47	discounts, credits, other rate differentials, and appropriate
48	reductions in deductibles that reflect the full actuarial value
49	of such revaluation, which may be used by insurers in rate
50	filings.
51	(b)  By February 1, 2011, the Office of Insurance
52	Regulation, in consultation with the Department of Financial
53	Services and the Department of Community Affairs, shall develop
54	and make publicly available a proposed method for insurers to
55	establish discounts, credits, or other rate differentials for
56	hurricane mitigation measures which directly correlate to the
57	numerical rating assigned to a structure pursuant to the uniform
58	home grading scale adopted by the Financial Services Commission
59	pursuant to s. 215.55865, including any proposed changes to the
60	uniform home grading scale. By October 1, 2011, the commission
61	shall adopt rules requiring insurers to make rate filings for
62	residential property insurance which revise insurers' discounts,
63	credits, or other rate differentials for hurricane mitigation
64	measures so that such rate differentials correlate directly to
65	the uniform home grading scale. The rules may include such
66	changes to the uniform home grading scale as the commission
67	determines are necessary, and may specify the minimum required
68	discounts, credits, or other rate differentials. Such rate
69	differentials must be consistent with generally accepted
70	actuarial principles and wind-loss mitigation studies. The rules
71	shall allow a period of at least 2 years after the effective
72	date of the revised mitigation discounts, credits, or other rate
73	differentials for a property owner to obtain an inspection or
74	otherwise qualify for the revised credit, during which time the
75	insurer shall continue to apply the mitigation credit that was
76	applied immediately prior to the effective date of the revised
77	credit. Discounts, credits, and other rate differentials
78	established for rate filings under this paragraph shall
79	supersede, after adoption, the discounts, credits, and other
80	rate 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.