Miami-Dade Legislative Item
File Number: 062921
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File Number: 062921 File Type: Resolution Status: Adopted
Version: 0 Reference: R-1336-06 Control: County Commission
File Name: DEVLP RATING SYSTEMS FOR HOMEOWNERS INSURANCE BASED ON RISK Introduced: 10/6/2006
Requester: NONE Cost: Final Action: 11/28/2006
Agenda Date: 11/28/2006 Agenda Item Number: 11A9
Notes: Title: RESOLUTION URGING THE FLORIDA LEGISLATURE, THE FLORIDA OFFICE OF INSURANCE REGULATION, AND THE CITIZENS PROPERTY INSURANCE CORPORATION TO DEVELOP AND IMPLEMENT RATING SYSTEMS FOR HOMEOWNERS INSURANCE BASED ON THE RELATIVE RISK OF LOSS FOR EACH HOME TO MORE PRECISELY DETERMINE RATES
Indexes: HOMEOWNERS INSURANCE POLICIS
  INSURANCE
Sponsors: Carlos A. Gimenez, Prime Sponsor
  Audrey M. Edmonson, Co-Sponsor
  Sally A. Heyman, Co-Sponsor
  Rebeca Sosa, Co-Sponsor
  Sen. Javier D. Souto, Co-Sponsor
  Katy Sorenson, Co-Sponsor
  Jose "Pepe" Diaz, 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 11/28/2006 11A9 Adopted P

Intergov., Recreation & Cultural Affairs Cmte. 10/18/2006 2F Forwarded to BCC with a favorable recommendation P
REPORT: Commissioners Edmonson and Souto asked that they be listed as co-sponsors to the foregoing proposed resolution.

County Attorney 10/6/2006 Assigned Intergov., Recreation & Cultural Affairs Cmte. 10/18/2006

County Attorney 10/6/2006 Assigned Jess M. McCarty

Legislative Text


TITLE
RESOLUTION URGING THE FLORIDA LEGISLATURE, THE FLORIDA OFFICE OF INSURANCE REGULATION, AND THE CITIZENS PROPERTY INSURANCE CORPORATION TO DEVELOP AND IMPLEMENT RATING SYSTEMS FOR HOMEOWNERS INSURANCE BASED ON THE RELATIVE RISK OF LOSS FOR EACH HOME TO MORE PRECISELY DETERMINE RATES

BODY
WHEREAS, the Florida Legislature created the Citizens' Property Insurance Corporation (Citizens) in 2002; and
WHEREAS, Citizens provides insurance to homeowners in high-risk areas who cannot find coverage in the open private insurance market; and
WHEREAS, Citizens has now grown to be the largest insurer of property in the State of Florida as private insurance companies have left the state or reduced the number of policies they write in Florida; and
WHEREAS, Citizens only writes insurance policies on properties located east of I-95 in north Miami-Dade County and east of U.S. 1 in south Miami-Dade County; and
WHEREAS, Citizens determines the insurance rate that applies based on only a few general factors, consisting of the location of the property, the type of construction used and the age of the home; and
WHEREAS, Citizens, along with many private insurers, charges a surcharge on homes more than twenty (20) years old; and
WHEREAS, these surcharges apply based purely on the age of the home and do not take into consideration any upgrades that may have been done to bring the home into compliance with current building code requirements; and
WHEREAS, some older homes may be better able to withstand windstorm events than other homes, yet the current general rating system does not take into account the strength of particular homes, instead grouping homes together by age, location and building material; and
WHEREAS, some older homes may also have newer electrical, plumbing or security upgrades that may substantially reduce non-windstorm based risks such as water leaks, electrical fires and burglaries, yet these upgrades are not captured in the current rating systems; and
WHEREAS, the rating systems should provide incentives for homeowners to make their homes as safe and wind-resistant as possible, yet the current rating systems often do not provide such incentives; and
WHEREAS, the Florida Cabinet recently considered proposed rule changes that would require actuarially-based discounts from insurance premiums for homeowners who install shutters and take other steps to strengthen their homes against windstorm events; and
WHEREAS, more can be done to more precisely match relative risk of loss of a home with the particular attributes and upgrades to a home,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board:
Section 1. Urges the Florida Legislature, the Florida Office of Insurance Regulation, the Citizens Property Insurance Corporation, and private insurers to develop and implement rating systems for homeowners insurance based on the relative risk associated with each home to more precisely determine rates.
Section 2. Directs the Clerk of the Board to transmit a certified copy of this resolution to the Governor, Senate President, House Speaker, the Chair and Members of the Miami-Dade County State Legislative Delegation, the Commissioner of the Florida Office of Insurance Regulation, and the Chairman of Citizens' Board of Governors, and the President of Citizens'.
Section 3. Directs the County's state lobbyists to advocate for the passage of the legislation and the implementation of the reforms set forth in Section 1 above, and directs the Office of Intergovernmental Affairs to include this item in the 2007 State Legislative Package.



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