# Florida Senate Bill 876 (2010)

F.S. = Florida Statutes
A bill to be entitled
An act relating to residential property insurance; amending s. 627.062, F.S.; authorizing certain insurers to use a rate different from otherwise applicable filed rates; prohibiting the consideration of certain policies when making a specified calculation; limiting the maximum average statewide increase for certain rate filings; preserving the authority of the Office of Insurance Regulation to disapprove rates as inadequate or disapprove a rate filing for using certain rating factors; authorizing the office to direct an insurer to make a specified type of rate filing under certain circumstances; amending s. 627.351, F.S.; providing requirements for the levy of the Citizens policyholder surcharge; prohibiting the corporation from levying certain regular assessments until after levying the full amount of a Citizens policyholder surcharge; requiring the corporation’s plan of operation to require agents to obtain an acknowledgement of potential surcharge and assessment liability from applicants and policyholders; requiring the corporation to permanently retain a copy of such acknowledgments; specifying that the acknowledgement creates a conclusive presumption of understanding and acceptance by the policyholder; creating s. 627.7031, F.S.; authorizing certain insurers to offer or renew policies at rates established under certain circumstances; prohibiting certain insurers from purchasing TICL option coverage from the Florida Hurricane Catastrophe Fund under certain circumstances; requiring that certain policies contain a specified rate notice; requiring insurers to offer applicants or insureds an estimate of the premium for a policy from Citizens Property Insurance Corporation reflecting similar coverage, limits, and deductibles; requiring applicants or insureds to provide a signed premium comparison acknowledgement; specifying criteria for insurer compliance with certain requirements; specifying acknowledgement contents; requiring insurers and agents to retain a copy of the acknowledgement for a specified time; specifying a presumption created by a signed acknowledgement; specifying types of residential property insurance policies that are not eligible for certain rates or subject to other requirements; requiring written notice of certain nonrenewals; preserving insurer authority to cancel policies; specifying a criterion for what constitutes an offer to renew a policy; providing an effective date.
Be It Enacted by the Legislature of the State of Florida:

## Section 1

Paragraph (l) is added to subsection (2) of section 627.062, Florida Statutes, to read:
    627.062 Rate standards.—
    (2) As to all such classes of insurance:
    (l)1. An insurer complying with the requirements of s. 627.7031 may use a rate for residential property insurance, as defined in s. 627.4025, different from the otherwise applicable filed rate as provided in this paragraph.
    2. Policies subject to this paragraph may not be counted in the calculation under s. 627.171(2).
    3. Such rates shall be filed with the office as a separate filing. The filing must be accompanied by an actuary’s certification stating that the filing was prepared in accordance with current actuarial standards of practice of the Actuarial Standards Board and that the rates are within a range consistent with applicable actuarial principles or, when the percentage limitations of this paragraph do not allow for a rate within a range consistent with applicable actuarial principles, the certification must state that the rates are below such range. The initial rates used by an insurer under this paragraph may not provide for rates that represent more than a 10 percent statewide average rate increase over the most recently filed and approved rate. A rate filing made pursuant to this paragraph submitted in any year following the implementation of such initial rates may not provide for rates that represent more than a 10 percent statewide average rate increase in any one year over the rates in effect under this paragraph at the time of the filing. A rate filing made pursuant to this paragraph may not provide for a percentage rate increase as to any one policyholder which exceeds two times the statewide average rate increase provided in the filing.
    4. This paragraph does not affect the authority of the office to disapprove a rate as inadequate or to disapprove a rate filing for charging any insured or applicant a higher premium solely because of the insured’s or applicant’s race, color, creed, marital status, sex, or national origin. Upon finding that an insurer has used any such factor in charging an insured or applicant a higher premium, the office may direct the insurer to make a new filing for a new rate that does not use such factor.
The provisions of this subsection shall not apply to workers’ compensation and employer’s liability insurance and to motor vehicle insurance.