CS/HB 885

A bill to be entitled
2An act relating to residential property insurance;
3amending s. 627.062, F.S.; revising costs to be included
4in a rate filing; revising the overall premium increase
5for a rate filing; revising the information that must be
6included in a rate filing relating to reinsurance;
7deleting a provision prohibiting an insurer from
8implementing a rate increase within 6 months before it
9makes certain rate filings; deleting a provision
10prohibiting an insurer from filing for a rate increase
11within 6 months after it makes certain rate filings;
12providing an effective date.
14Be It Enacted by the Legislature of the State of Florida:
16     Section 1.  Paragraph (k) of subsection (2) of section
17627.062, Florida Statutes, is amended to read:
18     627.062  Rate standards.-
19     (2)  As to all such classes of insurance:
20     (k)1.  A residential property An insurer may make a
21separate filing limited solely to an adjustment of its rates for
22reinsurance, the cost of financing products used as a
23replacement for reinsurance, or financing costs incurred in the
24purchase of reinsurance, or financing products to replace or
25finance the payment of the amount covered by the Temporary
26Increase in Coverage Limits (TICL) portion of the Florida
27Hurricane Catastrophe Fund including replacement reinsurance for
28the TICL reductions made pursuant to s. 215.555(17)(e); the
29actual cost paid due to the application of the TICL premium
30factor pursuant to s. 215.555(17)(f); and the actual cost paid
31due to the application of the cash build-up factor pursuant to
32s. 215.555(5)(b) if the insurer:
33     a.  Elects to purchase financing products such as a
34liquidity instrument or line of credit, in which case the cost
35included in the filing for the liquidity instrument or line of
36credit may not result in a premium increase exceeding 3 percent
37for any individual policyholder. All costs contained in the
38filing may not result in an overall premium increase of more
39than 15 10 percent for any individual policyholder.
40     b.  Includes in the filing a copy of all of its
41reinsurance, liquidity instrument, or line of credit contracts;
42proof of the billing or payment for the contracts; and the
43calculation upon which the proposed rate change is based
44demonstrating demonstrates that the costs meet the criteria of
45this section and are not loaded for expenses or profit for the
46insurer making the filing.
47     c.  Includes no other changes to its rates in the filing.
48     d.  Has not implemented a rate increase within the 6 months
49immediately preceding the filing.
50     e.  Does not file for a rate increase under any other
51paragraph within 6 months after making a filing under this
53     c.f.  An insurer that purchases reinsurance or financing
54products from an affiliated company may make a separate filing
55in compliance with this paragraph does so only if the costs for
56such reinsurance or financing products are charged at or below
57charges made for comparable coverage by nonaffiliated reinsurers
58or financial entities making such coverage or financing products
59available in this state.
60     2.  An insurer may only make only one filing per in any 12-
61month period under this paragraph.
62     3.  An insurer that elects to implement a rate change under
63this paragraph must file its rate filing with the office at
64least 45 days before the effective date of the rate change.
65After an insurer submits a complete filing that meets all of the
66requirements of this paragraph, the office has 45 days after the
67date of the filing to review the rate filing and determine if
68the rate is excessive, inadequate, or unfairly discriminatory.
70The provisions of this subsection shall not apply to workers'
71compensation and employer's liability insurance and to motor
72vehicle insurance.
73     Section 2.  This act shall take effect upon becoming a law.

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