Senate Bill 418 (2023) — Insurance
SB 418
Florida Bills
Florida Senate - 2023 SB 418 By Senator Perry 9-00717-23 2023418__ Page 1 of 5 CODING: Words stricken are deletions; words underlined are additions. A bill to be entitled 1
An act relating to insurance; amending s. 627.062, 2 F.S.; authorizing residential property insurance rate 3 filings to use a specified modeling indication; 4 amending s. 627.0628, F.S.; authorizing a designee of 5 the Director of the Division of Emergency Management 6 to be a member of the Florida Commission on Hurricane 7 Loss Projection Methodology; providing a requirement 8 for such designee; amending s. 627.0629, F.S.; 9 authorizing insurers to file with the Office of 10 Insurance Regulation personal lines residential 11 property insurance rating plans providing rate 12 differentials based on certain windstorm mitigation 13 construction standards; providing requirements for 14 such plans; amending s. 627.0665, F.S.; revising the 15 timeframe for notices from insurers to insureds of 16 automatic bank withdrawal increases; specifying the 17 increase threshold for such notices; amending s. 18 627.7276, F.S.; revising the requirements for the 19 notice of limited coverage under certain automobile 20 policies; providing an effective date. 21 22 Be It Enacted by the Legislature of the State of Florida: 23 24
Section 1. Paragraph (
j) of subsection (2) of
section 25 627.062, Florida Statutes, is amended to read: 26 627.062 Rate standards.— 27
(2) As to all such classes of insurance: 28 (
j) With respect to residential property insurance rate 29
Florida Senate - 2023 SB 418 9-00717-23 2023418__ Page 2 of 5 CODING: Words stricken are deletions; words underlined are additions. filings, the rate filing: 30 1. Must account for mitigation measures undertaken by 31 policyholders to reduce hurricane losses. 32 2. May use a modeling indication that is the weighted or 33 straight average of two or more hurricane loss projection models 34 found by the Florida Commission on Hurricane Loss Projection 35 Methodology to be accurate or reliable pursuant to s. 627.0628. 36 37 The provisions of this subsection do not apply to workers’ 38 compensation, employer’s liability insurance, and motor vehicle 39 insurance. 40
Section 2. Paragraph (
b) of subsection (2) of
section 41 627.0628, Florida Statutes, is amended to read: 42 627.0628 Florida Commission on Hurricane Loss Projection 43 Methodology; public records exemption; public meetings 44 exemption.— 45
(2) COMMISSION CREATED.— 46 (
b) The commission shall consist of the following 12 47 members: 48 1. The insurance consumer advocate. 49 2. The senior employee of the State Board of Administration 50 responsible for operations of the Florida Hurricane Catastrophe 51 Fund. 52 3. The Executive Director of the Citizens Property 53 Insurance Corporation. 54 4. The Director of the Division of Emergency Management or 55 the director’s designee. The director’s designee must be a full-56 time employee of the division. 57 5. The actuary member of the Florida Hurricane Catastrophe 58
Florida Senate - 2023 SB 418 9-00717-23 2023418__ Page 3 of 5 CODING: Words stricken are deletions; words underlined are additions. Fund Advisory Council. 59 6. An employee of the office who is an actuary responsible 60 for property insurance rate filings and who is appointed by the 61 director of the office. 62 7. Five members appointed by the Chief Financial Officer, 63 as follows: 64 a.
An actuary who is employed full time by a property and 65 casualty insurer that was responsible for at least 1 percent of 66 the aggregate statewide direct written premium for homeowner 67 insurance in the calendar year preceding the member’s 68 appointment to the commission. 69 b. An expert in insurance finance who is a full-time member 70 of the faculty of the State University System and who has a 71 background in actuarial science. 72 c. An expert in statistics who is a full-time member of the 73 faculty of the State University System and who has a background 74 in insurance. 75 d.
An expert in computer system design who is a full-time 76 member of the faculty of the State University System. 77 e. An expert in meteorology who is a full-time member of 78 the faculty of the State University System and who specializes 79 in hurricanes. 80 8. A licensed professional structural engineer who is a 81 full-time faculty member in the State University System and who 82 has expertise in wind mitigation techniques. This appointment 83 shall be made by the Governor. 84
Section 3. Subsection (9) is added to
section 627.0629, 85 Florida Statutes, to read: 86 627.0629 Residential property insurance; rate filings.— 87
Florida Senate - 2023 SB 418 9-00717-23 2023418__ Page 4 of 5 CODING: Words stricken are deletions; words underlined are additions.
(9) An insurer may file with the office a personal lines 88 residential property insurance rating plan that provides 89 justified premium discounts, credits, or other rate 90 differentials based on windstorm mitigation construction 91 standards developed by an independent, nonprofit scientific 92 research organization, if such standards meet the requirements 93 of this section. Such plan must describe the manner in which the 94 insurer will document the existence of the mitigation features 95 and premium discounts, credits, or other rate differentials 96 created under such plan. 97
Section
Section 627.0665, Florida Statutes, is amended 98 to read: 99 627.0665 Automatic bank withdrawal agreements; notification 100 required.—Any insurer licensed to issue insurance in the state 101 who has an automatic bank withdrawal agreement with an insured 102 party for the payment of insurance premiums for any type of 103 insurance shall give the named insured at least 10 15 days 104 advance written notice of any increase in policy premiums which 105 results in the next automatic bank withdrawal being increased by 106 more than $10. Such notice must be provided before prior to any 107 automatic bank withdrawal containing the of an increased 108 premium. 109
Section
Section 627.7276, Florida Statutes, is amended 110 to read: 111 627.7276 Notice of limited coverage.— 112
(1) An automobile policy that does not contain coverage for 113 bodily injury and property damage must include a notice be 114 clearly stamped or printed to the effect that such coverage is 115 not included in the policy in the following manner: 116
Florida Senate - 2023 SB 418 9-00717-23 2023418__ Page 5 of 5 CODING: Words stricken are deletions; words underlined are additions. 117 “THIS POLICY DOES NOT PROVIDE BODILY INJURY AND 118 PROPERTY DAMAGE LIABILITY INSURANCE OR ANY OTHER 119 COVERAGE FOR WHICH A SPECIFIC PREMIUM CHARGE IS NOT 120 MADE, AND DOES NOT COMPLY WITH ANY FINANCIAL 121 RESPONSIBILITY LAW.” 122 123
(2) This notice legend must accompany appear on the policy 124 declarations declaration page and on the filing back of the 125 policy and must be printed in a contrasting color from that used 126 on the policy and in type size at least as large as larger than 127 the largest type size used on the declarations page in the text 128 thereof, as an overprint or by a rubber stamp impression. 129