Miami-Dade Legislative Item
File Number: 062518
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File Number: 062518 File Type: Resolution Status: Adopted
Version: 0 Reference: R-1084-06 Control: County Commission
File Name: URGE LEGISLATURE TO AMEND STATUTES-CITIZENS PROP. INS. CORP. Introduced: 9/7/2006
Requester: NONE Cost: Final Action: 9/26/2006
Agenda Date: 9/26/2006 Agenda Item Number: 14A9
Notes: Title: RESOLUTION URGING THE FLORIDA LEGISLATURE TO AMEND STATUTES CREATING THE CITIZENS PROPERTY INSURANCE CORPORATION TO ELIMINATE STATUTORY LIMITATIONS IMPOSED ON CITIZENS SO AS TO ALLOW CITIZENS TO MORE BROADLY AND FAIRLY DISTRIBUTE RISK THROUGHOUT THE STATE AND REDUCE RATES, AND URGING OTHER AFFECTED COMMUNITIES TO JOIN MIAMI-DADE COUNTY REGARDING THIS INITIATIVE
Indexes: LEGISLATURE
  WINDSTORM INSURANCE RATES
Sponsors: Katy Sorenson, Prime Sponsor
  Audrey M. Edmonson, Co-Sponsor
  Carlos A. Gimenez, Co-Sponsor
  Sally A. Heyman, Co-Sponsor
  Dennis C. Moss, Co-Sponsor
Sunset Provision: No Effective Date: Expiration Date:
Registered Lobbyist: None Listed


Legislative History

Acting Body Date Agenda Item Action Sent To Due Date Returned Pass/Fail

Board of County Commissioners 9/26/2006 14A9 Adopted P

County Manager 9/25/2006 Additions 9/26/2006

Intergov., Recreation & Cultural Affairs Cmte. 9/20/2006 2C Forwarded to the BCC by the BCC Chairperson with a favorable recommendation P
REPORT: The foregoing proposed resolution was read into the record by Assistant County Attorney Monica Maldonado. Commissioners Gimenez, Edmonson and Moss requested that they be added as co-sponsors to this resolution. Chairwoman Heyman asked staff to prepare the appropriate memorandum requesting that Chairman Joe A. Martinez waive the Committee’s rules and allow the foregoing resolution to be considered at the September 26,2006 BCC meeting. Commissioner Gimenez asked the County Manager’s Office to draft a resolution urging the State of Florida to develop an individual property rating system to determine insurance better rates on individual properties throughout the State of Florida. Chairwoman Heyman asked Director Joe Rasco, Office of Intergovernmental Affairs, to provide the County Attorney and the County Manager with copies of the 100 points developed for legislative priorities. In response to Commissioner Moss’ question regarding special sessions to deal with the issue of doubled insurance rates, Mr. Rasco noted because this was an election year, it had not been decided whether the Governor would call a special session before November, but a special session could potentially be held in conjunction with the organizational meeting in mid-November, following the election. He noted the delegation was trying to influence the process so that wind-storm insurance could better reflect the needs of this community. Commissioner Moss asked Assistant County Attorney Maldonado to draft a resolution encouraging the State Legislature to pursue policy urging the auto insurance companies to write homeowners’ insurance policies for the State of Florida. Commissioner Gimenez asked that he be listed as a co-sponsor to this resolution when drafted.

County Attorney 9/7/2006 Referred Intergov., Recreation & Cultural Affairs Cmte. 9/20/2006

County Attorney 9/7/2006 Assigned Jess M. McCarty 9/8/2006

Legislative Text


TITLE
RESOLUTION URGING THE FLORIDA LEGISLATURE TO AMEND STATUTES CREATING THE CITIZENS PROPERTY INSURANCE CORPORATION TO ELIMINATE STATUTORY LIMITATIONS IMPOSED ON CITIZENS SO AS TO ALLOW CITIZENS TO MORE BROADLY AND FAIRLY DISTRIBUTE RISK THROUGHOUT THE STATE AND REDUCE RATES, AND URGING OTHER AFFECTED COMMUNITIES TO JOIN MIAMI-DADE COUNTY REGARDING THIS INITIATIVE

BODY
WHEREAS, in 1993, the Florida Legislature created the Florida Hurricane Catastrophe Fund, and also enacted the Florida Windstorm Underwriting Association (“FWUA”) as an association of private insurers to provide hurricane and windstorm insurance to Florida residents who cannot obtain coverage from another insurer; and
WHEREAS, in 2002, the Florida Legislature created the Citizens Property Insurance Corporation (“Citizens”); and
WHEREAS, all of the assets and liabilities of FWUA have been transferred to Citizens; and
WHEREAS, in Miami-Dade County, Citizens is statutorily limited to writing windstorm policies only for properties located east of I95 in north and central Miami-Dade County and east of U.S. Highway 1 in south Miami-Dade County; and
WHEREAS, the arbitrary windstorm insurance coverage line which runs along U.S. Highway 1 and I-95 is not the product of scientific analysis; and
WHEREAS, the continued existence of this arbitrary line will inordinately burden those property owners east of the line, despite the fact that hurricanes affect all Floridians; and
WHEREAS, as a result of recent hurricanes, all properties east of this arbitrary line face a forty to fifty percent increase in their insurance premiums; and
WHEREAS, the elimination of this arbitrary and unscientific line, which has outlived its usefulness, would benefit all of Florida, by creating a larger pool of insured persons, and promoting greater stability, security and protection for all of Florida; and
WHEREAS, Citizens is also statutorily required to charge rates higher than any other insurance company in the market and only insure properties that no other insurer will insure; and
WHEREAS, requiring Citizens to charge the highest rates in the state and allowing Citizens only to insure properties that no other insurer will insure prevents Citizens from spreading the risk of loss among a wide range of properties thus limiting Citizens to only those properties that have the highest risk; and
WHEREAS, these arbitrarily limitations cause Citizens to insure only the most high-risk properties and prevent Citizens from spreading its risk among inland and other lower-risk properties as private insurance companies do; and
WHEREAS, if the state is going to participate in the property insurance market through Citizens, it should not be limited to only the most high-risk properties in an effort to curb increases in premiums; and
WHEREAS, it is the people of Florida who are currently subsidizing the profitable insurance industry by issuing insurance policies on only the highest risk claims through Citizens; and
WHEREAS, there were 27 tropical events during the 2005 hurricane season, including Hurricanes Katrina, Rita and Wilma; and
WHEREAS, weather experts predict that the hurricane cycle over the next 20 years will consist of stronger and more frequent hurricanes and tropical storms; and
WHEREAS, based upon the foregoing, the insurance industry will likely be increasing windstorm premiums for all Floridians and many insurance companies may leave the market;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA:
Section 1. The Legislature is urged to amend statutes creating the Citizens Property Insurance Corporation during the 2007 regular session or any special session in 2006 or 2007 to eliminate statutory limitations on Citizens, such as the restriction that Citizens only write policies east of an arbitrary line running down I-95 in north and central Miami-Dade County and U.S. 1 in south Miami-Dade County; the requirement that Citizens charge higher premiums than any property insurer; and the requirement that Citizens only insure properties that no private insurance company will insure, so as to allow Citizens to more broadly and fairly distribute risk and in turn reduce insurance premiums.
Section 2. The County urges Broward County, Palm Beach County and all other affected communities within Florida to support Miami-Dade County’s efforts to lobby the Florida Legislature to remove the arbitrary line relied upon by Citizens Property Insurance Corporation.
Section 3. The Clerk of the Board shall transmit a certified copy of this resolution to the Governor, Senate President, House Speaker, and the Chair and Members of the Miami-Dade County State Legislative Delegation. The County’s state lobbyists shall advocate for the passage of the legislation set forth in Section 1 above, and the Office of Intergovernmental Affairs is directed to include this item in the 2006-2007 State Legislative Package. A copy of this resolution shall also be provided to the appropriate County officials from Broward County, Palm Beach County and all other affected communities.



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