Enacted Today, HB 931 Mandates Revisions to Florida’s Citizens Property Insurance Takeout Program by January 1, 2017
Apr 14, 2016
Signed by Governor Rick Scott today, April 14, 2016, HB 931 will make several changes to law relating to Florida’s Citizens Property Insurance Corporation (“Citizens”) effective July 1, 2016.
The new law requires Citizens to revise its plan of operation by January 1, 2017 as it relates to take-out agreements made with private insurers.
These changes require:
- Citizens to publish cycles for which take-out offers can be made;
- Private insurers to offer similar coverage comparable to Citizens and provide an estimate of premium;
- That private insurers must include in their take-out offers a comparison of coverages and rate between the insurer’s policy and Citizens’ policy; and
- Citizens to compile a list of companies that have shown interest in depopulating a policy and to make available to the agent of record.
The bill also:
- Requires that agents who write business for Citizens must also hold an appointment with an admitted carrier that is currently writing or renewing policies in the state;
- Allows the consumer representative to the Citizens Board of Governors to be afforded the same conflict of interest exemption as other Board of Governors members;
- Allows Citizens to share underwriting and claims files data with authorized entities for the development of takeout plans or rating plans. General lines agents may not use such data to directly solicit policyholders.
- Allows Citizens to use a combination of the Florida Public Hurricane Loss Model and private models when calculating the windstorm portion of rates.
To access the bill text and complete information on HB 931, click here.
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