TITLE
RESOLUTION URGING GOVERNOR CHARLIE CRIST, THE FLORIDA LEGISLATURE AND THE COMMISSIONER OF THE OFFICE OF INSURANCE REGULATION TO TAKE ALL STEPS NECESSARY TO ENSURE THAT INSURANCE COMPANIES WRITING PROPERTY INSURANCE POLICIES IN FLORIDA COMPLY WITH HB 1-A AND PASS SAVINGS ON TO POLICYHOLDERS

BODY
WHEREAS, in January, 2007, the Florida Legislature convened Special Session A to reduce current property insurance premiums; reduce the future rate of growth in property insurance premiums, and improve the availability and stability of property insurance; and
WHEREAS, during the special session, the Legislature passed two pieces of legislation, House Bill 1-A, which was a comprehensive property insurance reform bill, and House Memorial 11-A, which urged the U.S. Congress to support a National Catastrophe Insurance Program, whereby the risk of catastrophes would be addressed through a public-private partnership; and
WHEREAS, HB 1-A expanded the Florida Hurricane Catastrophe Fund (FHCF), a reinsurance coverage fund backed by the State of Florida from which insurance companies could purchase reinsurance; and
WHEREAS, the FHCF offered insurance companies reinsurance coverage significantly lower in price than coverage that was available through private reinsurance companies; and
WHEREAS, HB 1-A required insurance companies to pass savings they realized by purchasing reinsurance through the expanded FHCF on to policyholders; and
WHEREAS, in exchange for an increased risk carried by the people of Florida through the state-backed FHCF, HB 1-A promised to reduce insurance premiums; and
WHEREAS, in the year since Special Session A and despite the mandates included in HB 1-A, property insurance premiums have not declined in many cases and in some cases, have continued to increase; and
WHEREAS, the Governor, Chief Financial Officer and Insurance Commissioner have taken a number of steps to require insurance companies to comply with HB 1-A, including issuing subpoenas to various Allstate subsidiaries to testify before the Office of Insurance Regulation about the companies� reinsurance program and why premiums have not been reduced; and eventually stopping Allstate subsidiaries from issuing new homeowners and automobile insurance policies in Florida, although the latter action currently is in litigation; and
WHEREAS, the Florida Legislature has held hearings and meetings and have subpoenaed insurance company executives to explain why insurance premiums have not been reduced despite HB 1-A and the expanded FHCF; and
WHEREAS, more action is needed to bring property insurance premiums under control,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board:
Section 1. Urges Governor Charlie Crist, the Florida Legislature and the Commissioner of the Office of Insurance Regulation to take all steps necessary to ensure that insurance companies writing property insurance policies in Florida comply with HB 1-A and pass savings on to policyholders.
Section 2. Directs the Clerk of the Board to transmit certified copies of the resolution to the Governor, Senate President, House Speaker, the Chair and Members of the Miami-Dade State Legislative Delegation, and the Commissioner of the Office of Insurance Regulation.
Section 3. Directs the County's state lobbyists to advocate for the issue identified in Section 1 above, and directs the Office of Intergovernmental Affairs to include this item in the 2008 state legislative package.