Florida Senate - 2013 COMMITTEE AMENDMENT
Bill No. CS for SB 1046
Barcode 728946
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
04/22/2013 .
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The Committee on Appropriations (Richter) recommended the
following:
1 Senate Amendment (with title amendment)
2
3 Delete lines 1097 - 1115
4 and insert:
5 premium for employers that have exposure in more than one state,
6 an estimated annual standard premium in this state of $175,000,
7 and an estimated annual countrywide standard premium of $1
8 million or more for workers’ compensation.
9 Section 28. Subsection (2) of section 627.281, Florida
10 Statutes, is amended to read:
11 627.281 Appeal from rating organization; workers’
12 compensation and employer’s liability insurance filings.—
13 (2) If such appeal is based upon the failure of the rating
14 organization to make a filing on behalf of such member or
15 subscriber which is based on a system of expense provisions
16 which differs, in accordance with the right granted in s.
17 627.072(3) 627.072(2), from the system of expense provisions
18 included in a filing made by the rating organization, the office
19 shall, if it grants the appeal, order the rating organization to
20 make the requested filing for use by the appellant. In deciding
21 such appeal, the office shall apply the applicable standards set
22 forth in ss. 627.062 and 627.072.
23 Section 29. Paragraphs (gg), (hh), and (ii) are added to
24 subsection (6) of section 627.351, Florida Statutes, to read:
25 627.351 Insurance risk apportionment plans.—
26 (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
27 (gg) At least once every 6 months, the corporation shall
28 submit a report to the office and the Insurance Consumer
29 Advocate disclosing:
30 1. The total number of requests received for residential
31 sinkhole loss coverage;
32 2. The total number of policies issued for residential
33 sinkhole loss coverage;
34 3. The total number of requests declined for residential
35 sinkhole loss coverage; and
36 4. The reasons for declining the requests for residential
37 sinkhole loss coverage.
38 (hh) The Legislature finds that it is in the public
39 interest that sinkhole loss claims are resolved by stabilizing
40 the land and structure and making repairs to the foundation of
41 the damaged structure. Therefore, a Citizens Sinkhole
42 Stabilization Repair Program is established by the corporation.
43 By March 31, 2014, any claim against a corporation policy that
44 covers residential sinkhole loss for which it is determined that
45 such loss has occurred must be included in and governed by the
46 repair program for the purpose of stabilizing the land and
47 structure and making repairs to the foundation.
48 1. As used in this paragraph, the terms:
49 a. “Engineering report” means the report issued pursuant to
50 s. 627.7073(1).
51 b. “Recommendation of the engineer” means the
52 recommendation of the engineer engaged by the corporation
53 pursuant to s. 627.7073(1)(a)5.
54 c. “Stabilization repairs” means stabilizing the land and
55 structure and making repairs to the foundation.
56 d. “Stabilization repair contractor” means a contractor who
57 stabilizes the land and structure and makes repairs to the
58 foundation of the damaged structure.
59 2. The repair program may be managed by the corporation or
60 a third-party administrator and, at a minimum, must include the
61 following components:
62 a. The corporation may not require the policyholder to
63 advance payment for repairs.
64 b. Stabilization repairs shall be conducted by
65 stabilization repair contractors selected from an approved
66 stabilization repair contractor pool procured by the corporation
67 pursuant to an open and transparent process. Each stabilization
68 repair contractor within the pool must be qualified and approved
69 by the corporation based upon criteria including the following
70 minimum requirements:
71 (I) The stabilization repair contractor must be certified
72 as a contractor pursuant s. 489.113(1).
73 (II) The stabilization repair contractor corporate entity
74 must demonstrate experience in stabilization of sinkhole
75 activity pursuant to requirements to be established by the
76 corporation.
77 (III) The stabilization repair contractor must demonstrate
78 capacity to be bonded and provide performance, surety, or other
79 bonds as described in this section which may be supplemented by
80 additional requirements as determined by the corporation.
81 (IV) The stabilization repair contractor must demonstrate
82 insurance coverage requirements, including, but not limited to,
83 commercial general liability coverage and workers’ compensation,
84 to be established by the corporation.
85 (V) The stabilization repair contractor must maintain a
86 valid drug-free workplace program.
87 (VI) Such other requirements as established by the
88 corporation.
89 c. Pursuant to the stabilization repair program, qualified
90 stabilization repair contractors shall be selected from the
91 approved stabilization repair contractor pool to stabilize the
92 land and structure and repair the foundation of the damaged
93 structure pursuant to a fixed-price contract between the
94 contractor and the corporation. Such contracts are not subject
95 to paragraph (6)(e) or s. 287.057. Pursuant to the terms of the
96 contract, the selected stabilization repair contractor is solely
97 responsible for the performance of all necessary stabilization
98 repairs specified in the engineering report and recommendations
99 of the engineer.
100 d. The corporation shall develop a standard stabilization
101 repair contract for the purpose of stabilizing the land and
102 structure and repairing the foundation of all properties within
103 the program. The contract must include the following minimum
104 requirements:
105 (I) The assigned stabilization repair contractor must agree
106 to make all stabilization repairs identified in the engineering
107 report based upon a fixed price.
108 (II) Each stabilization repair contractor must post a
109 payment bond in favor of the corporation as obligee for each
110 project assigned and must post a performance bond, secured by a
111 third-party surety, in favor of the corporation as obligee, in a
112 principal amount equal to the total cost of all fixed-price
113 contracts annually awarded to that contractor.
114 (III) In addition to the required performance bond, each
115 stabilization repair contractor must also provide a warranty,
116 secured by a third-party surety, to the policyholder which
117 covers all repairs provided by the stabilization repair
118 contractor for at least 5 years after completion of the
119 stabilization repairs.
120 (IV) Throughout the course of the stabilization repairs
121 performed by the contractor, the engineer shall monitor the
122 property and confirm that stabilization has been satisfactorily
123 completed and that no further stabilization is necessary to
124 remedy the damage identified in the engineering report and
125 recommendation of the engineer.
126 (V) If the engineer concludes that additional stabilization
127 repair is necessary to complete the repairs specified in the
128 engineering report and recommendations of the engineer, the
129 stabilization repair contractor must perform the additional
130 stabilization repairs at no cost to the corporation or the
131 policyholder. The contract between the corporation and the
132 contractor must contain provisions specifying the remedy and
133 sanctions for failing to perform such additional repairs.
134 e. The corporation shall enter into contracts to perform
135 repairs pursuant to a process that includes, but is not limited
136 to, the following requirements:
137 (I) Within 30 days after the completion of the engineering
138 report, the report shall be identified on a list which shall be
139 made available to all stabilization contractors.
140 (II) The corporation shall establish a selection process
141 for assigning stabilization repair contractors to perform
142 repairs for each property within the program. The selection
143 process must include:
144 (A) All stabilization repair contractors within the
145 stabilization repair contractor pool shall be provided with an
146 opportunity to submit an offer, that includes an itemized
147 statement of work, to perform the stabilization repairs
148 recommended in the engineering report.
149 (B) The corporation shall review the offers and provide the
150 policyholder with a list of stabilization repair contractors
151 from which the policyholder shall be provided a reasonable time,
152 not to exceed 30 days, to participate in the selection by
153 choosing the stabilization repair contractor from among those
154 qualified contractors on the list provided by the corporation.
155 (C) If the policyholder has not made such a selection
156 within the 30-day period described herein, the corporation may
157 make the selection.
158 (D) The corporation may reserve the right to include any or
159 all contractors on the list provided to the policyholder based
160 upon quality, cost-effectiveness, and such other criteria as the
161 corporation shall determine.
162 (III) If no stabilization repair contractor submits an
163 offer to perform the stabilization repairs for a property within
164 the program or all offers are above the policyholder’s policy
165 limit, the corporation may enter the property into the selection
166 process again or the corporation may pay the policyholder an
167 amount up to the policy limits on the structure.
168 f. The corporation is not responsible for serving as a
169 stabilization repair contractor. The corporation’s obligations
170 pursuant to the repair program are not an election to repair by
171 the corporation and therefore do not imply or result in a new
172 contractual relationship with the policyholder.
173 g. The corporation’s liability related to repair activity,
174 including stabilization repairs pursuant to the sinkhole
175 stabilization program and all other repairs to the structure in
176 accordance with the terms of the policy, is no greater than the
177 policy limits on the structure.
178 h. This section does not prohibit the corporation from
179 establishing a managed repair program for other repairs to the
180 structure in accordance with the terms of the policy.
181 i. If a dispute arises between the corporation and the
182 policyholder as to the nature or extent of stabilization repairs
183 to be conducted under the program, the sole remedy for resolving
184 such disputes shall be specific performance.
185 j. This section supersedes s. 627.707(5), except for
186 paragraph (5)(e).
187 3. The corporation shall pay for other repairs to the
188 structure and contents in accordance with the terms of the
189 policy.
190 (ii) A policy for residential property insurance issued by
191 the corporation must include a deductible amount applicable to
192 sinkhole losses, offered in amounts equal to 2 percent, 5
193 percent, and 10 percent of the policy dwelling limits, with
194 appropriate premium discounts offered with each deductible
195 amount.
196 Section 30. Section 627.3519, Florida Statutes, is amended
197 to read:
198 627.3519 Annual report of aggregate net probable maximum
199 losses, financing options, and potential assessments.—No later
200 than February 1 of each year, the Florida Hurricane Catastrophe
201 Fund and Citizens Property Insurance Corporation Financial
202 Services Commission shall provide to the Legislature and the
203 Financial Services Commission a report of their respective the
204 aggregate net probable maximum losses, financing options, and
205 potential assessments of the Florida Hurricane Catastrophe Fund
206 and Citizens Property Insurance Corporation. The report of the
207 fund and the corporation must include their the respective 50
208 year, 100-year, and 250-year probable maximum losses of the fund
209 and the corporation; analysis of all reasonable financing
210 strategies for each such probable maximum loss, including the
211 amount and term of debt instruments; specification of the
212 percentage assessments that would be needed to support each of
213 the financing strategies; and calculations of the aggregate
214 assessment burden on Florida property and casualty policyholders
215 for each of the probable maximum losses. The commission shall
216 require the fund and the corporation to provide the commission
217 with such data and analysis as the commission considers
218 necessary to prepare the report.
219
220 ================= T I T L E A M E N D M E N T ================
221 And the title is amended as follows:
222 Delete lines 119 - 125
223 and insert:
224 conforming a cross-reference; amending s. 627.351,
225 F.S.; requiring Citizens Property Insurance
226 Corporation to submit a biannual report on the number
227 of residential sinkhole policies issued and declined;
228 providing legislative intent; establishing a Citizens
229 Sinkhole Stabilization Repair Program for sinkhole
230 claims; providing definitions; providing program
231 components; specifying the corporation’s liability
232 with respect to sinkhole claims; requiring the
233 corporation to offer specified deductible amounts for
234 sinkhole loss coverage; amending s. 627.3519, F.S.;
235 requiring the Florida Hurricane Catastrophe Fund and
236 Citizens Property Insurance Corporation to provide an
237 annual report to the Legislature and the Financial
238 Services Commission of their respective aggregate net
239 probable maximum losses, financing options, and
240 potential assessments; amending s. 627.4133, F.S.;
241 increasing