Florida Senate - 2017                          SENATOR AMENDMENT
       Bill No. CS/CS/HB 813, 1st Eng.
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                Floor: 2/AD/2R         .         Floor: SENSA/C         
             05/02/2017 05:10 PM       .      05/04/2017 02:34 PM       

       Senator Brandes moved the following:
    1         Senate Substitute for Amendment (703910) (with title
    2  amendment)
    4         Delete lines 126 - 207
    5  and insert:
    6  October 1, 2025 2019, the insurer may also establish and use
    7  such rates in accordance with the rates, rating schedules, or
    8  rating manuals filed by the insurer with the office which allow
    9  the insurer a reasonable rate of return on flood coverage
   10  written in this state. Flood coverage rates established pursuant
   11  to this paragraph are not subject to s. 627.062(2)(a) and (f).
   12  An insurer shall notify the office of any change to such rates
   13  within 30 days after the effective date of the change. The
   14  notice must include the name of the insurer and the average
   15  statewide percentage change in rates. Actuarial data with regard
   16  to such rates for flood coverage must be maintained by the
   17  insurer for 2 years after the effective date of such rate change
   18  and is subject to examination by the office. The office may
   19  require the insurer to incur the costs associated with an
   20  examination. Upon examination, the office, in accordance with
   21  generally accepted and reasonable actuarial techniques, shall
   22  consider the rate factors in s. 627.062(2)(b), (c), and (d), and
   23  the standards in s. 627.062(2)(e), to determine if the rate is
   24  excessive, inadequate, or unfairly discriminatory. If the office
   25  determines that a rate is excessive or unfairly discriminatory,
   26  the office shall require the insurer to provide appropriate
   27  credit to affected insureds or an appropriate refund to affected
   28  insureds who no longer receive coverage from the insurer.
   29         (4) A surplus lines agent may export a contract or
   30  endorsement providing flood coverage to an eligible surplus
   31  lines insurer without making a diligent effort to seek such
   32  coverage from three or more authorized insurers under s.
   33  626.916(1)(a). This subsection expires July 1, 2019, or on the
   34  date on which the Commissioner of Insurance Regulation
   35  determines in writing that there is an adequate admitted market
   36  to provide coverage for the peril of flood consistent with this
   37  section, whichever date occurs first. If there are fewer than
   38  three admitted insurers on the date this subsection expires, the
   39  number of declinations necessary to meet the diligent-effort
   40  requirement shall be no fewer than the number of authorized
   41  insurers providing flood coverage 2017.
   42         (5) In addition to any other applicable requirements, an
   43  insurer providing flood coverage that is not excess coverage in
   44  this state must:
   45         (a) Notify the office at least 30 days before writing flood
   46  insurance in this state; and
   47         (b) File a plan of operation and financial projections or
   48  revisions to such plan, as applicable, with the office.
   49         (6) Citizens Property Insurance Corporation may not provide
   50  insurance for the peril of flood.
   51         (7) The Florida Hurricane Catastrophe Fund may not provide
   52  reimbursement for losses proximately caused by the peril of
   53  flood, including losses that occur during a covered event as
   54  defined in s. 215.555(2)(b).
   55         (8) An agent must provide a written notice to be signed by
   56  the applicant before the agent places, upon receiving an
   57  application for flood insurance coverage with from an admitted
   58  authorized or surplus lines insurer for a property receiving
   59  flood insurance under the National Flood Insurance Program,
   60  obtain an acknowledgment signed by the applicant before placing
   61  the coverage with the authorized or surplus lines insurer. The
   62  notice acknowledgment must notify the applicant that, if the
   63  applicant discontinues coverage under the National Flood
   64  Insurance Program which is provided at a subsidized rate, the
   65  full risk rate for flood insurance may apply to the property if
   66  the applicant later seeks to reinstate coverage under the
   67  program.
   69  ================= T I T L E  A M E N D M E N T ================
   70  And the title is amended as follows:
   71         Delete lines 11 - 22
   72  and insert:
   73         applicability; extending the last date of filing with
   74         the Office of Insurance Regulation of certain flood
   75         coverage rates that may be established and used by an
   76         insurer; specifying a condition for the expiration of
   77         a certain diligent-effort requirement exemption for
   78         surplus lines agents, relating to the export of
   79         certain contracts or endorsements to eligible surplus
   80         lines insurers; revising applicability of certain
   81         notification and filing requirements; revising a
   82         notice requirement for agents before they place flood
   83         insurance coverage with an admitted or surplus lines
   84         insurer for properties receiving flood insurance under
   85         the National Flood Insurance Program; providing