| 1 |
A bill to be entitled |
| 2 |
An act relating to property and casualty
insurance; |
| 3 |
transferring, renumbering, and amending ss.
350.061, |
| 4 |
350.0611, 350.0612, 350.0613, and 350.0614,
F.S.; |
| 5 |
authorizing the Public Counsel to represent
the general |
| 6 |
public before the Office of Insurance
Regulation; |
| 7 |
including certain proceedings related to
rules and rate |
| 8 |
filings for residential property insurance;
authorizing |
| 9 |
the Public Counsel to have access to files of
the office, |
| 10 |
to seek review of orders of the office, to
issue reports, |
| 11 |
recommendations, and proposed orders to the
office; |
| 12 |
specifying where the Public Counsel shall
maintain his or |
| 13 |
her office; authorizing the Joint Legislative
Auditing |
| 14 |
Committee to authorize the Public Counsel to
employ |
| 15 |
certain types of employees; requiring the
Office of |
| 16 |
Insurance Regulation to provide copies of
certain filings |
| 17 |
to the Public Counsel; amending s. 112.3145,
F.S.; |
| 18 |
conforming a cross-reference; amending s.
215.559, F.S.; |
| 19 |
revising the distribution of funds in the
Hurricane Loss |
| 20 |
Mitigation Program; providing for a
low-interest loan |
| 21 |
program; amending s. 408.40, F.S.; conforming
a cross |
| 22 |
reference; amending s. 624.319, F.S.;
authorizing the |
| 23 |
Public Counsel to have access to certain
confidential |
| 24 |
information held by the Department of
Financial Services |
| 25 |
or the Office of Insurance Regulation;
amending s. |
| 26 |
627.062, F.S.; deleting provisions that allow
an insurer |
| 27 |
to require arbitration of a rate filing for
property and |
| 28 |
casualty insurance; amending s. 627.0629, F.S.;
requiring |
| 29 |
underwriting rules for homeowners' insurance
to be filed |
| 30 |
with and approved by the Office of Insurance
Regulation; |
| 31 |
providing for filing and approval provisions;
amending s. |
| 32 |
627.0651, F.S.; deleting reference to the
filing of |
| 33 |
specified underwriting rules for homeowners'
insurance; |
| 34 |
amending s. 627.351, F.S.; deleting a cross
reference to |
| 35 |
conform; amending s. 627.4133, F.S.;
prohibiting an |
| 36 |
insurer from canceling or nonrenewing a
residential |
| 37 |
property insurance policy for certain
reasons; amending s. |
| 38 |
627.4145, F.S.; increasing the minimum score
on the |
| 39 |
reading ease test for insurance policies;
creating s. |
| 40 |
627.41494, F.S.; providing for consumer
participation in |
| 41 |
review of insurance rate changes; providing
for public |
| 42 |
inspection of rate filings; providing for
adoption of |
| 43 |
rules by the Financial Services Commission;
requiring |
| 44 |
insurers to pay costs of consumer advocacy
groups under |
| 45 |
certain circumstances; amending s. 627.701,
F.S.; revising |
| 46 |
the hurricane deductibles that insurers must
offer for |
| 47 |
personal lines residential property insurance
policies; |
| 48 |
providing an appropriation; providing
effective dates. |
| 49 |
|
| 50 |
Be It Enacted by the Legislature of the State
of Florida: |
| 51 |
|
| 52 |
Section 1. Section
350.061, Florida Statutes, is |
| 53 |
transferred, renumbered as section 11.402,
Florida Statutes, and |
| 54 |
amended to read: |
| 55 |
11.402
350.061 Public
Counsel; appointment; oath; |
| 56 |
restrictions on Public Counsel and his or her
employees.-- |
| 57 |
(1) The
Joint Legislative Auditing Committee shall appoint |
| 58 |
a Public Counsel by majority vote of the
members of the |
| 59 |
committee to represent the general public of
Florida before the |
| 60 |
Florida Public Service Commission and
the Office of Insurance |
| 61 |
Regulation.
The Public Counsel shall be an attorney admitted to |
| 62 |
practice before the Florida Supreme Court and
shall serve at the |
| 63 |
pleasure of the Joint Legislative Auditing
Committee, subject to |
| 64 |
annual reconfirmation by the committee.
Vacancies in the office |
| 65 |
shall be filled in the same manner as the
original appointment. |
| 66 |
(2) The
Public Counsel shall take and subscribe to the |
| 67 |
oath of office required of state officers by
the State |
| 68 |
Constitution. |
| 69 |
(3) No
officer or full-time employee of the Public Counsel |
| 70 |
shall actively engage in any other business
or profession; serve |
| 71 |
as the representative of any political party
or on any executive |
| 72 |
committee or other governing body thereof;
serve as an |
| 73 |
executive, officer, or employee of any
political party, |
| 74 |
committee, organization, or association;
receive remuneration |
| 75 |
for activities on behalf of any candidate for
public office; or |
| 76 |
engage on behalf of any candidate for public
office in the |
| 77 |
solicitation of votes or other activities in
behalf of such |
| 78 |
candidacy. Neither the Public Counsel nor any
employee of the |
| 79 |
Public Counsel shall become a candidate for
election to public |
| 80 |
office unless he or she shall first resign
from his or her |
| 81 |
office or employment. |
| 82 |
Section 2. Section
350.0611, Florida Statutes, is |
| 83 |
transferred, renumbered as section 11.403,
Florida Statutes, and |
| 84 |
amended to read: |
| 85 |
11.403
350.0611 Public
Counsel; duties and powers.--It |
| 86 |
shall be the duty of the Public Counsel to
provide legal |
| 87 |
representation for the people of the state in
proceedings before |
| 88 |
the Public Service
Commission and the Office of Insurance |
| 89 |
Regulation
and in proceedings before counties pursuant to s. |
| 90 |
367.171(8). The Public Counsel shall have
such powers as are |
| 91 |
necessary to carry out the duties of his or
her office, |
| 92 |
including, but not limited to, the following
specific powers: |
| 93 |
(1) To
recommend to the Public Service
Commission or the |
| 94 |
counties, by petition, the commencement of
any proceeding or |
| 95 |
action or to appear, in the name of the state
or its citizens, |
| 96 |
in any proceeding or action before the
commission or the |
| 97 |
counties. |
| 98 |
(2) To
recommend to the Office of Insurance Regulation, by |
| 99 |
petition, the commencement
of, and to appear in the name of the |
| 100 |
state or its citizens in,
any proceeding or action before the |
| 101 |
office relating to: |
| 102 |
(a) Rules
governing residential property insurance; or |
| 103 |
(b) Rate
filings for residential property insurance which, |
| 104 |
pursuant to standards
determined by the office, request an |
| 105 |
average statewide rate
increase of 10 percent or greater as |
| 106 |
compared to the current
rates in effect or the rates in effect |
| 107 |
12 months prior to the
proposed effective date. |
| 108 |
|
| 109 |
The Public Counsel may not
stay any final order of the Office of |
| 110 |
Insurance Regulation. |
| 111 |
(3) To
and urge in
any proceeding or action to which he or |
| 112 |
she is a party
therein any position that
which he or she deems |
| 113 |
to be in the public interest, whether
consistent or inconsistent |
| 114 |
with positions previously adopted by the
commission, or the |
| 115 |
counties, or the
office, and utilize therein all forms of |
| 116 |
discovery available to attorneys in civil
actions generally, |
| 117 |
subject to protective orders of the
commission, or the
counties, |
| 118 |
or the office,
which shall be reviewable by summary procedure in |
| 119 |
the circuit courts of this state.; |
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(4)(2) To
have access to and use of all files, records, |
| 121 |
and data of the commission, or
the counties, or the office |
| 122 |
available to any other attorney representing
parties in a |
| 123 |
proceeding before the commission, or
the counties, or the |
| 124 |
office.; |
| 125 |
(5)(3) In
any proceeding in which he or she has |
| 126 |
participated as a party, to seek review of
any determination, |
| 127 |
finding, or order of the commission, or
the counties, or the |
| 128 |
office,
or of any hearing examiner designated by the commission, |
| 129 |
or the counties, or
the office, in the name of the state or its |
| 130 |
citizens.; |
| 131 |
(6)(4) To
prepare and issue reports, recommendations, and |
| 132 |
proposed orders to the commission or
office, the Governor, and |
| 133 |
the Legislature on any matter or subject
within the jurisdiction |
| 134 |
of the commission or
office, and to make such recommendations as |
| 135 |
he or she deems appropriate for legislation
relative to |
| 136 |
commission or office
procedures, rules, jurisdiction, personnel, |
| 137 |
and functions.;
and |
| 138 |
(7)(5) To
appear before other state agencies, federal |
| 139 |
agencies, and state and federal courts in
connection with |
| 140 |
matters under the jurisdiction of the
commission or office, in |
| 141 |
the name of the state or its citizens. |
| 142 |
Section 3. Section
350.0612, Florida Statutes, is |
| 143 |
transferred, renumbered as section 11.404,
Florida Statutes, and |
| 144 |
amended to read: |
| 145 |
11.404
350.0612 Public
Counsel; location.--The Public |
| 146 |
Counsel shall maintain his or her office in
Leon County on the |
| 147 |
premises of the commission
or, if suitable space there cannot be |
| 148 |
provided,
at such other place convenient to the offices of the |
| 149 |
Public Services Commission
or the Office of Insurance Regulation |
| 150 |
commissioners
as will enable him or her to carry out |
| 151 |
expeditiously the duties and functions of his
or her office. |
| 152 |
Section 4. Section
350.0613, Florida Statutes, is |
| 153 |
transferred, renumbered as section 11.405,
Florida Statutes, and |
| 154 |
amended to read: |
| 155 |
11.405
350.0613 Public
Counsel; employees; receipt of |
| 156 |
pleadings.--The Joint
Legislative Auditing Committee may |
| 157 |
authorize the Public Counsel to employ
clerical and technical |
| 158 |
assistants whose qualifications, duties, and
responsibilities |
| 159 |
the committee shall from time to time
prescribe. The committee |
| 160 |
may from time to time authorize retention of
the services of |
| 161 |
additional attorneys,
actuaries, economists, or experts to the |
| 162 |
extent that the best interests of the people
of the state will |
| 163 |
be better served thereby, including the
retention of expert |
| 164 |
witnesses and other technical personnel for
participation in |
| 165 |
contested proceedings before the Public
Service Commission or |
| 166 |
Office of Insurance
Regulation. The commission shall furnish the |
| 167 |
Public Counsel with copies of the initial
pleadings in all |
| 168 |
proceedings before the commission.
The office shall furnish the |
| 169 |
Public Counsel with copies
of all filings that relate to the |
| 170 |
jurisdiction of the
Public Counsel pursuant to s. 11.403(2)., |
| 171 |
and If
the Public Counsel intervenes as a party in any |
| 172 |
proceeding he or she shall be served with
copies of all |
| 173 |
subsequent pleadings, exhibits, and prepared
testimony, if used. |
| 174 |
Upon filing notice of intervention, the
Public Counsel shall |
| 175 |
serve all interested parties with copies of
such notice and all |
| 176 |
of his or her subsequent pleadings and
exhibits. |
| 177 |
Section 5. Section
350.0614, Florida Statutes, is |
| 178 |
transferred, renumbered as section 11.406,
Florida Statutes, and |
| 179 |
amended to read: |
| 180 |
11.406
350.0614 Public
Counsel; compensation and |
| 181 |
expenses.-- |
| 182 |
(1) The
salaries and expenses of the Public Counsel and |
| 183 |
his or her employees shall be allocated by
the committee only |
| 184 |
from moneys appropriated to the Public
Counsel by the |
| 185 |
Legislature. |
| 186 |
(2) The
Legislature hereby declares and determines that |
| 187 |
the Public Counsel is under the legislative
branch of government |
| 188 |
within the intention of the legislation as
expressed in chapter |
| 189 |
216, and no power shall be in the Executive
Office of the |
| 190 |
Governor or its successor to release or
withhold funds |
| 191 |
appropriated to it, but the same shall be
available for |
| 192 |
expenditure as provided by law and the rules
or decisions of the |
| 193 |
Joint Auditing Committee. |
| 194 |
(3) Neither
the Executive Office of the Governor nor the |
| 195 |
Department of Management Services or its
successor shall have |
| 196 |
power to determine the number, or fix the
compensation, of the |
| 197 |
employees of the Public Counsel or to
exercise any manner of |
| 198 |
control over them. |
| 199 |
Section 6. Paragraph
(b) of subsection (1) of section |
| 200 |
112.3145, Florida Statutes, is amended to
read: |
| 201 |
112.3145 Disclosure
of financial interests and clients |
| 202 |
represented before agencies.-- |
| 203 |
(1) For
purposes of this section, unless the context |
| 204 |
otherwise requires, the term: |
| 205 |
(b) "Specified
state employee" means: |
| 206 |
1. Public
counsel created by chapter 11 350,
an assistant |
| 207 |
state attorney, an assistant public defender,
a full-time state |
| 208 |
employee who serves as counsel or assistant
counsel to any state |
| 209 |
agency, the Deputy Chief Judge of
Compensation Claims, a judge |
| 210 |
of compensation claims, an administrative law
judge, or a |
| 211 |
hearing officer. |
| 212 |
2. Any
person employed in the office of the Governor or in |
| 213 |
the office of any member of the Cabinet if
that person is exempt |
| 214 |
from the Career Service System, except
persons employed in |
| 215 |
clerical, secretarial, or similar positions. |
| 216 |
3. Each
appointed secretary, assistant secretary, deputy |
| 217 |
secretary, executive director, assistant
executive director, or |
| 218 |
deputy executive director of each state
department, commission, |
| 219 |
board, or council; unless otherwise provided,
the division |
| 220 |
director, assistant division director, deputy
director, bureau |
| 221 |
chief, and assistant bureau chief of any
state department or |
| 222 |
division; or any person having the power
normally conferred upon |
| 223 |
such persons, by whatever title. |
| 224 |
4. The
superintendent or institute director of a state |
| 225 |
mental health institute established for
training and research in |
| 226 |
the mental health field or the warden or
director of any major |
| 227 |
state institution or facility established for
corrections, |
| 228 |
training, treatment, or rehabilitation. |
| 229 |
5. Business
managers, purchasing agents having the power |
| 230 |
to make any purchase exceeding the threshold
amount provided for |
| 231 |
in s. 287.017 for CATEGORY ONE, finance and
accounting |
| 232 |
directors, personnel officers, or grants
coordinators for any |
| 233 |
state agency. |
| 234 |
6. Any
person, other than a legislative assistant exempted |
| 235 |
by the presiding officer of the house by
which the legislative |
| 236 |
assistant is employed, who is employed in the
legislative branch |
| 237 |
of government, except persons employed in
maintenance, clerical, |
| 238 |
secretarial, or similar positions. |
| 239 |
7. Each
employee of the Commission on Ethics. |
| 240 |
Section 7. Section
215.559, Florida Statutes, is amended |
| 241 |
to read: |
| 242 |
215.559 Hurricane
Loss Mitigation Program.-- |
| 243 |
(1) There
is created a Hurricane Loss Mitigation Program. |
| 244 |
The Legislature shall annually appropriate
$10 million of the |
| 245 |
moneys authorized for appropriation under s.
215.555(7)(c) from |
| 246 |
the Florida Hurricane Catastrophe Fund to the
Department of |
| 247 |
Community Affairs for the purposes set forth
in this section. |
| 248 |
(2)(a) One
Seven million dollars in funds
provided in |
| 249 |
subsection (1) shall be used for programs to
improve the wind |
| 250 |
resistance of residences
and mobile homes,
including loans, |
| 251 |
subsidies, grants,
demonstration projects, and direct |
| 252 |
assistance; cooperative
programs with local governments and the |
| 253 |
Federal Government;
and other efforts to prevent or reduce |
| 254 |
losses or reduce the cost of rebuilding after
a disaster. |
| 255 |
(b) Six
million dollars in funds provided in subsection |
| 256 |
(1) shall be used for
programs to improve the wind resistance of |
| 257 |
residences to prevent or
reduce losses or reduce the cost of |
| 258 |
rebuilding after a
disaster. |
| 259 |
(c) The
department shall, with the funds authorized in |
| 260 |
paragraphs (a) and (b),
establish a program of low-interest |
| 261 |
loans to qualified owners
of residences and qualified owners of |
| 262 |
mobile homes. For the
purpose of this section, the term "low- |
| 263 |
interest loan" means
any direct loan or loan guarantee issued or |
| 264 |
backed by such authorized
funds to a qualified owner to finance |
| 265 |
efforts to prevent or
reduce losses or reduce the cost of |
| 266 |
rebuilding after a
disaster with a requirement for repayment by |
| 267 |
the owner. Loans provided
under this section shall be made at a |
| 268 |
rate of up to 2 percent
below the qualified loan rate as |
| 269 |
determined by the
department. The terms and conditions of the |
| 270 |
low-interest loan program,
including loan incentive provisions, |
| 271 |
and the qualifications
required of owners of residences and |
| 272 |
owners of mobile homes
shall be determined by the department. |
| 273 |
(d)(b) Three
million dollars in funds provided in |
| 274 |
subsection (1) shall be used to retrofit
existing facilities |
| 275 |
used as public hurricane shelters. The
department must |
| 276 |
prioritize the use of these funds for
projects included in the |
| 277 |
September 1, 2000, version of the Shelter
Retrofit Report |
| 278 |
prepared in accordance with s. 252.385(3),
and each annual |
| 279 |
report thereafter. The department must give
funding priority to |
| 280 |
projects in regional planning council regions
that have shelter |
| 281 |
deficits and to projects that maximize use of
state funds. |
| 282 |
(3) Forty
percent of the total appropriation in paragraph |
| 283 |
(2)(a) shall be used to inspect and improve
tie-downs for mobile |
| 284 |
homes. Within 30 days after the effective
date of that |
| 285 |
appropriation, the department shall contract
with a public |
| 286 |
higher educational institution in this state
which has previous |
| 287 |
experience in administering the programs set
forth in this |
| 288 |
subsection to serve as the administrative
entity and fiscal |
| 289 |
agent pursuant to s. 216.346 for the purpose
of administering |
| 290 |
the programs set forth in this subsection in
accordance with |
| 291 |
established policy and procedures. The
administrative entity |
| 292 |
working with the advisory council set up
under subsection (5) |
| 293 |
shall develop a list of mobile home parks and
counties that may |
| 294 |
be eligible to participate in the tie-down
program. |
| 295 |
(4) Of
moneys provided to the Department of Community |
| 296 |
Affairs in paragraphs
paragraph (2)(a) and
(b), 10 percent shall |
| 297 |
be allocated to a Type I Center within the
State University |
| 298 |
System dedicated to hurricane research. The
Type I Center shall |
| 299 |
develop a preliminary work plan approved by
the advisory council |
| 300 |
set forth in subsection (5) to eliminate the
state and local |
| 301 |
barriers to upgrading existing residences,
mobile homes, and |
| 302 |
communities;, research and
develop a program for the recycling |
| 303 |
of existing older mobile homes;,
and support programs of |
| 304 |
research and development relating to
hurricane loss reduction |
| 305 |
devices and techniques for site-built
residences. The State |
| 306 |
University System also shall consult with the
Department of |
| 307 |
Community Affairs and assist the department
with the report |
| 308 |
required under subsection (7). |
| 309 |
(5) Except
for the program set forth in subsection (3), |
| 310 |
the Department of Community Affairs shall
develop the programs |
| 311 |
set forth in this section in consultation
with an advisory |
| 312 |
council consisting of a representative
designated by the Chief |
| 313 |
Financial Officer, a representative
designated by the Florida |
| 314 |
Home Builders Association, a representative
designated by the |
| 315 |
Florida Insurance Council, a representative
designated by the |
| 316 |
Federation of Manufactured Home Owners, a
representative |
| 317 |
designated by the Florida Association of
Counties, and a |
| 318 |
representative designated by the Florida
Manufactured Housing |
| 319 |
Association. |
| 320 |
(6) Moneys
provided to the Department of Community Affairs |
| 321 |
under this section are intended to supplement
other funding |
| 322 |
sources of the Department of Community
Affairs and may not |
| 323 |
supplant other funding sources of the
Department of Community |
| 324 |
Affairs. |
| 325 |
(7) On
January 1st of each year, the Department of |
| 326 |
Community Affairs shall provide a full report
and accounting of |
| 327 |
activities under this section and an
evaluation of such |
| 328 |
activities to the Speaker of the House of
Representatives, the |
| 329 |
President of the Senate, and the Majority and
Minority Leaders |
| 330 |
of the House of Representatives and the
Senate. |
| 331 |
(8) This
section is repealed June 30, 2011. |
| 332 |
Section 8. Subsection
(1) of section 408.40, Florida |
| 333 |
Statutes, is amended to read: |
| 334 |
408.40 Public
Counsel.-- |
| 335 |
(1) Notwithstanding
any other provisions of this chapter, |
| 336 |
the Public Counsel shall represent the public
in any proceeding |
| 337 |
before the agency or its advisory panels in
any administrative |
| 338 |
hearing conducted pursuant to chapter 120 or
before any other |
| 339 |
state and federal agencies and courts in any
issue before the |
| 340 |
agency, any court, or any agency. With
respect to any such |
| 341 |
proceeding, the Public Counsel is subject to
the provisions of |
| 342 |
and may use the powers granted to him or her
by ss. 11.402- |
| 343 |
11.406 ss.
350.061-350.0614. |
| 344 |
Section 9. Paragraph
(b) of subsection (3) of section |
| 345 |
624.319, Florida Statutes, is amended to
read: |
| 346 |
624.319 Examination
and investigation reports.-- |
| 347 |
(3) |
| 348 |
(b) Workpapers
and other information held by the |
| 349 |
department or office, and workpapers and
other information |
| 350 |
received from another governmental entity or
the National |
| 351 |
Association of Insurance Commissioners, for
the department's or |
| 352 |
office's use in the performance of its
examination or |
| 353 |
investigation duties pursuant to this section
and ss. 624.316, |
| 354 |
624.3161, 624.317, and 624.318 are
confidential and exempt from |
| 355 |
the provisions of s. 119.07(1) and s. 24(a),
Art. I of the State |
| 356 |
Constitution. This exemption applies to
workpapers and other |
| 357 |
information held by the department or office
before, on, or |
| 358 |
after the effective date of this exemption.
Such confidential |
| 359 |
and exempt information may be disclosed to
another governmental |
| 360 |
entity, if disclosure is necessary for the
receiving entity to |
| 361 |
perform its duties and responsibilities, and
may be disclosed to |
| 362 |
the National Association of Insurance
Commissioners. The Public |
| 363 |
Counsel shall have access
to such confidential and exempt |
| 364 |
information pertaining to
residential property insurance at any |
| 365 |
time. The
receiving governmental entity or the association must |
| 366 |
maintain the confidential and exempt status
of the information. |
| 367 |
The information made confidential and exempt
by this paragraph |
| 368 |
may be used in a criminal, civil, or
administrative proceeding |
| 369 |
so long as the confidential and exempt status
of such |
| 370 |
information is maintained. This paragraph is
subject to the Open |
| 371 |
Government Sunset Review Act of 1995 in
accordance with s. |
| 372 |
119.15 and shall stand repealed on October 2,
2007, unless |
| 373 |
reviewed and saved from repeal through
reenactment by the |
| 374 |
Legislature. |
| 375 |
Section 10. Effective
upon this act becoming a law, |
| 376 |
subsection (6) of section 627.062, Florida
Statutes, is amended, |
| 377 |
and subsections (7) and (8) of said section
are renumbered as |
| 378 |
subsections (6) and (7), respectively, to
read: |
| 379 |
627.062 Rate
standards.-- |
| 380 |
(6)(a) After
any action with respect to a rate filing that |
| 381 |
constitutes agency action
for purposes of the Administrative |
| 382 |
Procedure Act, except for
a rate filing for medical malpractice, |
| 383 |
an insurer may, in lieu of
demanding a hearing under s. 120.57, |
| 384 |
require arbitration of the
rate filing. Arbitration shall be |
| 385 |
conducted by a board of
arbitrators consisting of an arbitrator |
| 386 |
selected by the office, an
arbitrator selected by the insurer, |
| 387 |
and an arbitrator selected
jointly by the other two arbitrators. |
| 388 |
Each arbitrator must be
certified by the American Arbitration |
| 389 |
Association. A decision is
valid only upon the affirmative vote |
| 390 |
of at least two of the
arbitrators. No arbitrator may be an |
| 391 |
employee of any insurance
regulator or regulatory body or of any |
| 392 |
insurer, regardless of
whether or not the employing insurer does |
| 393 |
business in this state.
The office and the insurer must treat |
| 394 |
the decision of the
arbitrators as the final approval of a rate |
| 395 |
filing. Costs of
arbitration shall be paid by the insurer. |
| 396 |
(b) Arbitration
under this subsection shall be conducted |
| 397 |
pursuant to the procedures
specified in ss. 682.06-682.10. |
| 398 |
Either party may apply to
the circuit court to vacate or modify |
| 399 |
the decision pursuant to
s. 682.13 or s. 682.14. The commission |
| 400 |
shall adopt rules for
arbitration under this subsection, which |
| 401 |
rules may not be
inconsistent with the arbitration rules of the |
| 402 |
American Arbitration
Association as of January 1, 1996. |
| 403 |
(c) Upon
initiation of the arbitration process, the |
| 404 |
insurer waives all rights
to challenge the action of the office |
| 405 |
under the Administrative
Procedure Act or any other provision of |
| 406 |
law; however, such rights
are restored to the insurer if the |
| 407 |
arbitrators fail to render
a decision within 90 days after |
| 408 |
initiation of the
arbitration process. |
| 409 |
Section 11. Subsection
(11) is added to section 627.0629, |
| 410 |
Florida Statutes, to read: |
| 411 |
627.0629 Residential
property insurance; rate filings; |
| 412 |
underwriting rules.-- |
| 413 |
(11) The
underwriting rules for homeowners' insurance not |
| 414 |
contained in rating
manuals shall be filed with the office. All |
| 415 |
underwriting rules for
homeowners' insurance must be approved by |
| 416 |
the office and be
reasonable and comply with applicable |
| 417 |
provisions of law. The
filing and form-approval provisions under |
| 418 |
s. 627.410 apply to the
filing and approval of underwriting |
| 419 |
rules for homeowners'
insurance. |
| 420 |
Section 12. Subsection
(13) of section 627.0651, Florida |
| 421 |
Statutes, is amended to read: |
| 422 |
627.0651 Making
and use of rates for motor vehicle |
| 423 |
insurance.-- |
| 424 |
(13)(a) Underwriting
rules not contained in rating manuals |
| 425 |
shall be filed for private passenger
automobile insurance and |
| 426 |
homeowners' insurance. |
| 427 |
(b) The
submission of rates, rating schedules, and rating |
| 428 |
manuals to the office by a licensed rating
organization of which |
| 429 |
an insurer is a member or subscriber will be
sufficient |
| 430 |
compliance with this subsection for any
insurer maintaining |
| 431 |
membership or subscribership in such
organization, to the extent |
| 432 |
that the insurer uses the rates, rating
schedules, and rating |
| 433 |
manuals of such organization. All such
information shall be |
| 434 |
available for public inspection, upon receipt
by the office, |
| 435 |
during usual business hours. |
| 436 |
Section 13. Paragraph
(b) of subsection (2) of section |
| 437 |
627.351, Florida Statutes, is amended to
read: |
| 438 |
627.351 Insurance
risk apportionment plans.-- |
| 439 |
(2) WINDSTORM
INSURANCE RISK APPORTIONMENT.-- |
| 440 |
(b) The
department shall require all insurers holding a |
| 441 |
certificate of authority to transact property
insurance on a |
| 442 |
direct basis in this state, other than joint
underwriting |
| 443 |
associations and other entities formed
pursuant to this section, |
| 444 |
to provide windstorm coverage to applicants
from areas |
| 445 |
determined to be eligible pursuant to
paragraph (c) who in good |
| 446 |
faith are entitled to, but are unable to
procure, such coverage |
| 447 |
through ordinary means; or it shall adopt a
reasonable plan or |
| 448 |
plans for the equitable apportionment or
sharing among such |
| 449 |
insurers of windstorm coverage, which may
include formation of |
| 450 |
an association for this purpose. As used in
this subsection, the |
| 451 |
term "property insurance" means
insurance on real or personal |
| 452 |
property, as defined in s. 624.604, including
insurance for |
| 453 |
fire, industrial fire, allied lines,
farmowners multiperil, |
| 454 |
homeowners' multiperil, commercial multiperil,
and mobile homes, |
| 455 |
and including liability coverages on all such
insurance, but |
| 456 |
excluding inland marine as defined in s.
624.607(3) and |
| 457 |
excluding vehicle insurance as defined in s.
624.605(1)(a) other |
| 458 |
than insurance on mobile homes used as
permanent dwellings. The |
| 459 |
department shall adopt rules that provide a
formula for the |
| 460 |
recovery and repayment of any deferred
assessments. |
| 461 |
1. For
the purpose of this section, properties eligible |
| 462 |
for such windstorm coverage are defined as
dwellings, buildings, |
| 463 |
and other structures, including mobile homes
which are used as |
| 464 |
dwellings and which are tied down in
compliance with mobile home |
| 465 |
tie-down requirements prescribed by the
Department of Highway |
| 466 |
Safety and Motor Vehicles pursuant to s.
320.8325, and the |
| 467 |
contents of all such properties. An applicant
or policyholder is |
| 468 |
eligible for coverage only if an offer of
coverage cannot be |
| 469 |
obtained by or for the applicant or
policyholder from an |
| 470 |
admitted insurer at approved rates. |
| 471 |
2.a.(I) All
insurers required to be members of such |
| 472 |
association shall participate in its
writings, expenses, and |
| 473 |
losses. Surplus of the association shall be
retained for the |
| 474 |
payment of claims and shall not be
distributed to the member |
| 475 |
insurers. Such participation by member
insurers shall be in the |
| 476 |
proportion that the net direct premiums of
each member insurer |
| 477 |
written for property insurance in this state
during the |
| 478 |
preceding calendar year bear to the aggregate
net direct |
| 479 |
premiums for property insurance of all member
insurers, as |
| 480 |
reduced by any credits for voluntary
writings, in this state |
| 481 |
during the preceding calendar year. For the
purposes of this |
| 482 |
subsection, the term "net direct
premiums" means direct written |
| 483 |
premiums for property insurance, reduced by
premium for |
| 484 |
liability coverage and for the following if
included in allied |
| 485 |
lines: rain and hail on growing crops;
livestock; association |
| 486 |
direct premiums booked; National Flood
Insurance Program direct |
| 487 |
premiums; and similar deductions specifically
authorized by the |
| 488 |
plan of operation and approved by the
department. A member's |
| 489 |
participation shall begin on the first day of
the calendar year |
| 490 |
following the year in which it is issued a
certificate of |
| 491 |
authority to transact property insurance in
the state and shall |
| 492 |
terminate 1 year after the end of the
calendar year during which |
| 493 |
it no longer holds a certificate of authority
to transact |
| 494 |
property insurance in the state. The
commissioner, after review |
| 495 |
of annual statements, other reports, and any
other statistics |
| 496 |
that the commissioner deems necessary, shall
certify to the |
| 497 |
association the aggregate direct premiums
written for property |
| 498 |
insurance in this state by all member
insurers. |
| 499 |
(II) Effective
July 1, 2002, the association shall operate |
| 500 |
subject to the supervision and approval of a
board of governors |
| 501 |
who are the same individuals that have been
appointed by the |
| 502 |
Treasurer to serve on the board of governors
of the Citizens |
| 503 |
Property Insurance Corporation. |
| 504 |
(III) The
plan of operation shall provide a formula |
| 505 |
whereby a company voluntarily providing
windstorm coverage in |
| 506 |
affected areas will be relieved wholly or
partially from |
| 507 |
apportionment of a regular assessment
pursuant to sub-sub- |
| 508 |
subparagraph d.(I) or sub-sub-subparagraph
d.(II). |
| 509 |
(IV) A
company which is a member of a group of companies |
| 510 |
under common management may elect to have its
credits applied on |
| 511 |
a group basis, and any company or group may
elect to have its |
| 512 |
credits applied to any other company or
group. |
| 513 |
(V) There
shall be no credits or relief from apportionment |
| 514 |
to a company for emergency assessments
collected from its |
| 515 |
policyholders under sub-sub-subparagraph
d.(III). |
| 516 |
(VI) The
plan of operation may also provide for the award |
| 517 |
of credits, for a period not to exceed 3
years, from a regular |
| 518 |
assessment pursuant to sub-sub-subparagraph
d.(I) or sub-sub- |
| 519 |
subparagraph d.(II) as an incentive for
taking policies out of |
| 520 |
the Residential Property and Casualty Joint
Underwriting |
| 521 |
Association. In order to qualify for the
exemption under this |
| 522 |
sub-sub-subparagraph, the take-out plan must
provide that at |
| 523 |
least 40 percent of the policies removed from
the Residential |
| 524 |
Property and Casualty Joint Underwriting
Association cover risks |
| 525 |
located in Dade, Broward, and Palm Beach
Counties or at least 30 |
| 526 |
percent of the policies so removed cover
risks located in Dade, |
| 527 |
Broward, and Palm Beach Counties and an
additional 50 percent of |
| 528 |
the policies so removed cover risks located
in other coastal |
| 529 |
counties, and must also provide that no more
than 15 percent of |
| 530 |
the policies so removed may exclude windstorm
coverage. With the |
| 531 |
approval of the department, the association
may waive these |
| 532 |
geographic criteria for a take-out plan that
removes at least |
| 533 |
the lesser of 100,000 Residential Property
and Casualty Joint |
| 534 |
Underwriting Association policies or 15
percent of the total |
| 535 |
number of Residential Property and Casualty
Joint Underwriting |
| 536 |
Association policies, provided the governing
board of the |
| 537 |
Residential Property and Casualty Joint
Underwriting Association |
| 538 |
certifies that the take-out plan will
materially reduce the |
| 539 |
Residential Property and Casualty Joint
Underwriting |
| 540 |
Association's 100-year probable maximum loss
from hurricanes. |
| 541 |
With the approval of the department, the
board may extend such |
| 542 |
credits for an additional year if the insurer
guarantees an |
| 543 |
additional year of renewability for all
policies removed from |
| 544 |
the Residential Property and Casualty Joint
Underwriting |
| 545 |
Association, or for 2 additional years if the
insurer guarantees |
| 546 |
2 additional years of renewability for all
policies removed from |
| 547 |
the Residential Property and Casualty Joint
Underwriting |
| 548 |
Association. |
| 549 |
b. Assessments
to pay deficits in the association under |
| 550 |
this subparagraph shall be included as an
appropriate factor in |
| 551 |
the making of rates as provided in s.
627.3512. |
| 552 |
c. The
Legislature finds that the potential for unlimited |
| 553 |
deficit assessments under this subparagraph
may induce insurers |
| 554 |
to attempt to reduce their writings in the
voluntary market, and |
| 555 |
that such actions would worsen the
availability problems that |
| 556 |
the association was created to remedy. It is
the intent of the |
| 557 |
Legislature that insurers remain fully
responsible for paying |