Florida Senate Committee on Budget Amends, Passes Citizens Property Insurance Assessment Reduction Bill (SB 1346)
Mar 3, 2012
The Florida Senate Committee on Budget (“Committee”) met this morning, March 3, 2012, during which it considered SB 1346 by Senator Steve Oelrich. The bill would reduce assessments by Citizens Property Insurance Corporation (“Citizens”).
Chairman JD Alexander offered an amendment to the bill that would reduce the Florida Hurricane Catastrophe Fund (“FHCF”) from $17 billion to $15 billion over two years. The amendment also would increase the insurer copayment from 10 percent to 20 percent.
During discussion, Senator Alexander stated that the amendment is necessary, because the FHCF is unable to meet its statutory obligations. He added that he believed the amendment would cause a two percent increase in rates, but that it was a step in the right direction and there was still more work to be done to “shore up” the FHCF.
FHCF Chief Operating Officer Dr. Jack Nicholson spoke in favor of the amendment, as did representatives of business groups who were on hand today. The amendment was adopted.
SB 1346 was passed as a Committee Substitute.
Senator Alexander’s amendment is attached.
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