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

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