Florida Catastrophic Storm Risk Management Center
2010 Florida Legislation Related to Homeowners Insurance
SB 740 Relating to Office of Insurance Regulation
Requires that the Financial Services Commission reconfirm the appointment of the Director of the Office of Insurance Regulation every 2 years.
SB 876 Relating to Residential Property Insurance (Identical SB447)
Authorizes certain insurers to use a rate different from otherwise applicable filed rates. Preserves the authority of the OIR to disapprove rates as inadequate or disapprove a rate filing for using certain rating factors. Provides requirements for attachment and payment of the Citizens policyholder surcharge. Requires written notice of certain nonrenewals. Preserves insurer authority to cancel policies, etc.
SB 1460 General Bill (Richter)
Florida Hurricane Catastrophe Fund/Contract Year; Revises the method by which an insurer's retention is calculated. Revises contract years relating to minimum retention levels. Extends the expiration date of certain provisions of state law. Increases the maximum financial obligations of the SBA with respect to all contracts covering a particular contract year. Revises contract years for which a TICL options addendum must provide for reimbursement of TICL insurers for covered events, etc.
SB 2044 General Bill (Richter)
Delays the repeal of a provision exempting medical malpractice insurance premiums from emergency assessments to the Hurricane Catastrophe Fund. Revises the minimum surplus as to policyholders which must be maintained by certain insurers. Provides that the Circuit Court of Leon County is the venue for certain actions collateral to a delinquency proceeding involving an insurer, etc.
SB 2104 Relating to Citizens Property Insurance Corporation (Identical HB1081)
Requires that the corporation achieve actuarially sound rates on or before a specified date. Requires that the corporation take certain actions to achieve actuarially sound rates. Requires that the corporation file a plan of withdrawal on or before a specified date if it does not achieve said rates by a specified deadline. Prohibits the OIR from having authority with respect to the corporation's rates, etc.
SB 2114: Relating to the Florida Hurricane Catastrophe Fund (Richter)
Expresses the legislative intent to revise laws relating to the Florida Hurricane Catastrophe Fund.
SB 2136: Relating to the Florida Hurricane Catastrophe Fund (Richter)
Expresses the legislative intent to revise laws relating to the Florida Hurricane Catastrophe Fund.
SB 2176 Relating to Commercial Insurance Rates
Exempts specified types of insurance and commercial lines risks from certain requirements of state law relating to the filing and review of rates. Requires that an insurer notify the OIR following a change to certain rates. Requires that an insurer maintain certain information regarding underwriting files, premiums, and loss and expense statistics, which information is subject to review by the OIR, etc.
SB 2264 Relating to Public Adjusters (Identical HB1181)
Prohibits public adjusters from making certain employment solicitations. Prohibits certain unsolicited written communications. Revises prohibited charges by public adjusters. Specifies required information in public adjuster contracts. Bars certain personal lines residential coverage insurance claims subject to certain notice requirements. Provides nonapplicability to certain civil actions limitations, etc.
HB 151 Assessment of Residential Real Property
Prohibits adding to assessed value of residential real property just value of changes or improvements made for purpose of improving property's resistance to wind damage & just value of renewable energy source devices; provides limitation on assessed value of residential real property; provides procedural requirements & limitations; requires nonrefundable filing fee.
HB 159 Florida Insurance Guaranty Association
Combines two of three separate accounts of association; increases aggregate liability of association; authorizes explanation of existence or function of association as exception to prohibited advertisements in sales of insurance.
HB 447 Residential Property Insurance (Identical SB876)
Authorizes specified insurers to use different rate from otherwise applicable filed rate; prohibits consideration of specified policies when making specified calculation; preserves authority of OIR to disapprove rates as inadequate or disapprove rate filing for using specified rating factors; authorizes OIR to direct insurer to make specified type of rate filing under specified circumstances; provides requirements for attachment & payment of Citizens policyholder surcharge; prohibits CPIC from making regular assessments for deficits until after levying full amount of Citizens policyholder surcharge; revises CPIC plan of operation to require insured acknowledgement of potential surcharge & assessment liability; specifies acknowledgement creates conclusive presumption of understanding & acceptance by policyholder; prohibits specified insurers from purchasing TICL option coverage from FHCF; requires insurers to offer applicants or insureds policy premium estimate from CPIC reflecting similar coverage, limits, & deductibles; requires applicants or insureds to provide signed premium comparison acknowledgement; requires specified policies to contain specified notice; requires written notice of nonrenewal.
HB 457 Low-Income and Moderate-Income Homeowners (Identical SB928)
Authorizes counties to establish fund for providing no-interest loans to assist low-income & moderate-income homeowners in paying homeowners' insurance premiums; authorizes governing authority of county to levy surtaxes on building-related permits to finance assistance fund; limits amount families may receive from fund in any year; requires loans to be repaid if homestead is sold or refinanced; requires proceeds from refinancing or selling homestead to be deposited back into fund; provides ordinance requirements; specifies amount of surtaxes; limits uses of fund; provides for program to be adopted initially by governing authority of specified constitutional charter counties & for later adoption in remaining counties of state.
HB 545 Residential Property Sales
Repeals provision requiring disclosures of residential property windstorm mitigation ratings to purchasers in wind-borne debris regions.
Current Federal & Past Florida Legislation Related to Homeowners Insurance
Federal (111th Congress) & 2009 Florida
Senate Bills
Florida's U.S. Senators Mel Martinez and Bill Nelson introduced six bills, which they referred to as their "Hurricane Six-Pack," designed to address ways to improve hurricane preparedness and response, cost mitigation, and the creation of a national catastrophe fund.
S505: A bill to establish a natural catastrophe risks consortium and a national homeowners insurance stabilization program
From Senator Bill Nelson’s (D- Fla) Web site: “A top priority will be dealing with the shortfall in what’s called the Florida Hurricane Catastrophe Fund, which pays claims when insurance companies can't. Nelson’s bill would allow the federal government to step in with loans to the state’s CAT Fund. More specifically, Nelson’s legislation would allow multiple states to join together to help pay for each others' disaster costs. That’s in addition to a provision that would provide them with low-interest federal loans when damages exceed the resources of a state-run catastrophe fund.
S886: A bill to establish a program to provide guarantees for debt issued by state catastrophe insurance programs to assist in the financial recovery from natural catastrophes
Sponsored by Sen. Bill Nelson (D- Fla), this bill was introduced April 23.
S1363: Nonadmitted and Reinsurance Reform Act of 2009
To streamline the regulation of nonadmitted insurance and reinsurance, an for other purposes.
S1364: Hurricane and Tornado Mitigation Investment Act of 2009
To amend the International Revenue Code of 1986 to provide a credit against tax for hurricane and tornado mitigation expenditures.
S1484: To amend the Internal Revenue Code of 1986 to create Catastrophe Savings Accounts
S1485: National Hurricane Research Initiative
This bill reintroduces an effort to better research, predict, and prepare for hurricanes. The five-year, $375 million initiative is designed to "help build a foundation for targeted and coordinated research that will marshal resources and expertise of the government's scientists in a more focused way."
S1486: Policyholder Disaster Protection Act of 2009
To amend the Internal Revenue Code of 1986 to provide for the creation of disaster protection funds by property and casualty insurance companies for the payment of policyholders' claims arising from future catastrophic events.
S2818: To amend the Energy Conservation and Production Act to improve weatherization for low-income persons, and for other purposes
This bill would increase home weatherization assistance for low-income homeowners as a means of catastrophic loss abatement. See a press release from the bill’s sponsor Sen. George LeMieux, R-Fla.
Other Senate Bills of Interest
S601: Weather Mitigation Research and Development Policy Authorization Act of 2009
This Act aims to "develop and implement a comprehensive and coordinated national weather mitigation policy and a national cooperative Federal and State program of weather mitigation research and development."
House Bills
HR83: Homeowners Insurance Protection Act 2009
To establish a program to provide reinsurance for State natural catastrophe insurance programs to help the United States better prepare for and protect its citizens against the ravages of natural catastrophes, to encourage and promote mitigation and prevention for, and recovery and rebuilding from such catastrophes, and to better assist in the financial recovery from such catastrophes.
HR308: Hurricane and Tornado Mitigation Investment Act of 2009 (similar to S1364 above)
Amends the Internal Revenue Code to allow individual and business taxpayers in certain states a tax credit for 25% of their qualified hurricane and tornado mitigation property expenditures up to $5,000 for any taxable year. Defines such expenditures as expenditures in a dwelling unit to improve the strength of a roof deck attachment, create a secondary water barrier, improve the durability of a roof covering, brace gable-end walls, reinforce the connections between a roof and supporting wall, protect against windborne debris, or protect exterior doors and garages.
HR998: To amend the Internal Revenue Code of 1986 to provide for the creation of disaster protection (similar to S1486 above)
Amends the Internal Revenue Code of 1986 to provide for the creation of disaster protection funds by property and casualty insurance companies for the payment of policyholders’ claims arising from future catastrophic events.
HR1239: Property Mitigation Assistance Act of 2009
Establishes a homeowner mitigation loan program within the Federal Emergency Management Agency to promote pre-disaster property mitigation measures.
HR1264: To amend the National Flood Insurance Act of 1968 to provide for the national flood insurance program to make available multiperil coverage for damage resulting from windstorms or floods, and for other purposes
From the Web site of sponsor Rep. Gene Taylor, D-MS: "Throughout coastal America, property insurance companies have dramatically increased premiums on existing policies, cancelled existing policies, or have stopped writing new policies altogether for our nation's home and business owners. The Multiple Peril Insurance Act will solve this problem. It will also stimulate the economy throughout coastal America, particularly here in the Katrina area of the nation."
HR1905
This bill seeks to amend the Coastal Zone Management Act of 1972 to require the Secretary of Commerce to establish a coastal climate change adaptation planning and response program.
HR2246: Building Code Administration Grant Act of 2009
This bill proposes to create a grant program to supplement existing state or local funding for administration of building code enforcement.
HR2555: Homeowners Defense Act of 2009
Sponsored by Rep. Ron Klein, D-Boca Raton, this bill would allow qualified states to buy coverage from the federal government for certain disasters. From a May 21 press release from Rep. Klein: "This urgently needed insurance reform legislation will reduce the cost and improve availability of homeowners’ insurance in Florida and around the country. Klein’s bill allows states that choose to participate in a national catastrophe insurance pool to spread the risk of natural disasters in order to bring down costs for everyone." See the full press release.
HR2571: The Nonadmitted and Reinsurance Reform Act
This measure is aimed at streamlining and reducing barriers in state regulation of the nonadmitted insurance and reinsurance. It will "create a uniform system while preserving the role of the state regulator."
HR2592: The Safe Building Code Act
Supported by groups such as the Institute for Business and Home Safety, this proposed legislation encourages the adoption and enforcement of statewide building codes throughout the nation. Read the IBHS press release.
HR2627: To reauthorize the National Windstorm Impact Reduction Program, and for other purposes.
HR3026: To establish a predisaster mitigation program
To amend the United States Public Housing Act of 1937 to establish a predisaster mitigation program to benefit public and assisted housing residents, and for other purposes.
HR3027: The Predisaster Hazards Mitigation Enhancement Program Act of 2009
This bill would create a competitive grant award program to complement the existing Pre-Disaster Mitigation Grant Program. It would provide states with funds for projects that have a direct impact for residents of low to moderate income homes, as well as residents of apartments, and small business owners.
HR3377: Disaster Response, Recovery, and Mitigation Enhancement Act of 2009
This bill would "enhance the Nation's disaster preparedness, response, recovery, and mitigation capabilities."
HR3424: To amend the Internal Revenue Code of 1986 to disallow the deduction for excess non-taxed reinsurance premiums with respect to
As introduced, this bill amends the Internal Revenue Code to deny a tax deduction for excess reinsurance premiums with respect to U.S. risks paid to affiliated insurance companies that are not subject to U.S. taxation. Walter Bell, chairman of SwissRe American Holding Corp., in a Palm Beach Post letter to the editor published on Dec. 31, 2009, said that HR 3424 "proposes a punitive tax on internationally based reinsurers as a supposed 'tax haven' crackdown" and would force more of Florida's consumers to use the Florida Hurricane Catastrophe Fund.
HR3654: Hurricane Satellite Modernization Act
This bill, sponsored by Rep. Ron Klein, D-Boca Raton, authorizes the construction of next-generation hurricane tracking satellites. Rep. Klein said he introduced the legislation in response to an internal memo from the National Oceanic and Atmospheric Association (NOAA), issued last week, that indicated imminent failure of NASA's QuickSCAT satellite.
HR4014: Guarantee of Debt Issued by State Catastrophe Insurance Programs
Sponsored by Rep. Loretta Sanchez (R-CA), this bill seeks to establish a program to provide guarantees for debt issued by State catastrophe insurance programs to assist in financial recovery from natural catastrophes.
State of Florida - Bills Addressed in the 2009 Session
HB 1171 Residential Property Insurance - Engrossed , (VETOED by Gov. Crist June 24) , Original Filed Version
This bill permits certain residential property insurers to use a rate in excess of the otherwise applicable filed rate.
HB 1495 Insurance - Engrossed (Signed by Gov. Crist May 27) , Original Filed Version , (Staff Brief - May 1)
Extends application of provisions relating to temporary increase in coverage limit operations for Florida Hurricane Catastrophe Fund; provides additional reimbursement requirements for temporary increase in coverage addenda for additional contract years; defines term "actuarially sound rates" for purposes of coverage by Citizens Property Insurance Corporation; requires corporation to implement specified rate increases each year; provides for termination of such rate increase implementation; requires corporation to transfer specified moneys to GR Fund; provides for termination of such transfers; provides for appropriation of transferred funds to Insurance Regulatory Trust Fund; requires My Safe Florida Home Program to use specified funds for mitigation grants; authorizes DFS to establish separate account in trust fund for accounting purposes.
SB1432 GENERAL BILL (Senate bill substituted with H 0741 , which was signed by Gov. Crist May 27)
Insurance Premiums; Provides that certain provisions of state law do not apply to discounts when the premium for the entire policy term is paid at the inception of the term, as long as such discounts meet specified criteria. Prohibits such discounts from being considered related to or components of premium financing. EFFECTIVE DATE: 07/01/2009
SB714 GENERAL BILL (Compare H 0419, H 0831, S 0880) (Vetoed by Gov. Crist June 1)
Condominium Insurance; Requires that adequate property insurance be based upon the replacement cost of the property to be insured as determined by an independent appraisal or update of a prior appraisal. Requires that such replacement cost be determined at least once within a specified period, etc. Provides an exemption for certain condominiums from installing a manual fire alarm system as required in the Life Safety Code if certain conditions are met. EFFECTIVE DATE: 07/01/2009.