Florida Senate - 2022                        COMMITTEE AMENDMENT
       Bill No. SB 1058
       
       
       
       
       
       
                                Ì5184828Î518482                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                   Comm: WD            .                                
                  01/12/2022           .                                
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       The Committee on Banking and Insurance (Brandes) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Between lines 68 and 69
    4  insert:
    5         Section 2. Paragraph (n) of subsection (6) of section
    6  627.351, Florida Statutes, is amended to read:
    7         627.351 Insurance risk apportionment plans.—
    8         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
    9         (n)1. Rates for coverage provided by the corporation must
   10  be actuarially sound and subject to s. 627.062, except as
   11  otherwise provided in this paragraph. The corporation shall file
   12  its recommended rates with the office at least annually. The
   13  corporation shall provide any additional information regarding
   14  the rates which the office requires. The office shall consider
   15  the recommendations of the board and issue a final order
   16  establishing the rates for the corporation within 45 days after
   17  the recommended rates are filed. The corporation may not pursue
   18  an administrative challenge or judicial review of the final
   19  order of the office.
   20         2. In addition to the rates otherwise determined pursuant
   21  to this paragraph, the corporation shall impose and collect an
   22  amount equal to the premium tax provided in s. 624.509 to
   23  augment the financial resources of the corporation.
   24         3. After the public hurricane loss-projection model under
   25  s. 627.06281 has been found to be accurate and reliable by the
   26  Florida Commission on Hurricane Loss Projection Methodology, the
   27  model shall be considered when establishing the windstorm
   28  portion of the corporation’s rates. The corporation may use the
   29  public model results in combination with the results of private
   30  models to calculate rates for the windstorm portion of the
   31  corporation’s rates. This subparagraph does not require or allow
   32  the corporation to adopt rates lower than the rates otherwise
   33  required or allowed by this paragraph.
   34         4. The corporation must make a recommended actuarially
   35  sound rate filing for each personal and commercial line of
   36  business it writes.
   37         5. Notwithstanding the board’s recommended rates and the
   38  office’s final order regarding the corporation’s filed rates
   39  under subparagraph 1., the corporation shall annually implement
   40  a rate increase which, except for sinkhole coverage, does not
   41  exceed the following for any single policy issued by the
   42  corporation, excluding coverage changes and surcharges:
   43         a. Eleven percent for 2022.
   44         b. Twelve percent for 2023.
   45         c. Thirteen percent for 2024.
   46         d. Fourteen percent for 2025.
   47         e. Fifteen percent for 2026 and all subsequent years.
   48         6. The corporation may also implement an increase to
   49  reflect the effect on the corporation of the cash buildup factor
   50  pursuant to s. 215.555(5)(b).
   51         7. The corporation’s implementation of rates as prescribed
   52  in subparagraph 5. shall cease for any line of business written
   53  by the corporation upon the corporation’s implementation of
   54  actuarially sound rates. Thereafter, the corporation shall
   55  annually make a recommended actuarially sound rate filing for
   56  each commercial and personal line of business the corporation
   57  writes.
   58         8. Rates for coverage provided by the corporation for
   59  policies assumed from unsound insurers as defined in s.
   60  215.555(2)(p) may not be discounted below the rates established
   61  by the corporation for other policies pursuant to this paragraph
   62  at the time of the transfer and may not be reduced below the
   63  rate for the policy at the time the corporation assumed the
   64  policy.
   65  
   66  ================= T I T L E  A M E N D M E N T ================
   67  And the title is amended as follows:
   68         Delete lines 2 - 8
   69  and insert:
   70         An act relating to unsound insurers; amending s.
   71         215.555, F.S.; defining the term “unsound insurer”;
   72         revising requirements for coverage under the Florida
   73         Hurricane Catastrophe Fund of certain policies assumed
   74         by authorized insurers or the Citizens Property
   75         Insurance Corporation; providing construction;
   76         amending s. 627.351, F.S.; prohibiting the corporation
   77         from discounting or reducing rates for policies
   78         assumed from unsound insurers; providing an effective
   79         date.