Florida House of Representatives Insurance Committee re PCB Property Insurance Bill 3/16/2006
Jan 5, 2007
The House of Representatives Insurance Committee approved an amended version of its Proposed Committee Bill (PCB) relating to property insurance today by a 10 to 6 vote. The PCB contains numerous provisions relating to property insurance, including provisions changing the operation of Citizens Property Insurance Corporation (Citizens), provisions regarding rate making, and proposed a funding mechanism for the Florida Hurricane Catastrophe Fund (FHCF). Although the bill contains many reforms, the most notable provisions of the bill include a rapid cash build-up feature for the FHCF, requiring Citizens to treat homestead properties different from non-homestead properties for purposes of rating and assessments, restricting Citizens from insuring homes valued over $1 million and allowing insurers to use “flex rating.”
The Committee was presented with 29 amendments to the PCB and approved 22 amendments. Some of the more significant amendments included an amendment allowing insurers in the private market to issue a policy on non-homestead property eligible for Citizens or a policy for homes valued for $1 million or more on an individual rate basis, as well as an amendment that allows automatic approval of an insurer’s rate for the wind portion of a policy if the rate requested is lower than Citizens. Additionally, citing Constitutional concerns, the Committee approved an amendment removing the repeal of the Panhandle exemption in the building code. The Committee also reduced the “flex rating” portion contained in the PCB from 15% to 10% in a territory and from 10% to 5% on a statewide average. You can find a copy of the meeting packet and amendments at the following website:
http://www.myfloridahouse.gov/Sections/Documents/publications.aspx?CommitteeId=2246&PublicationType=Committees&DocumentType=Meeting%20Packets&Session=2006&SessionId=42
The Committee also favorably reported bills relating to a national catastrophe insurance program, long-term care coverage, and employments requirements.
We will continue to monitor developments and provide updates accordingly. Please contact this office with any questions or concerns you may have.
Regards,
Katherine A. Scott