Miami-Dade Legislative Item
File Number: 130179
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File Number: 130179 File Type: Resolution Status: Adopted
Version: 0 Reference: R-119-13 Control: Board of County Commissioners
File Name: CITIZENS INSURANCE RATE CAP Introduced: 1/29/2013
Requester: NONE Cost: Final Action: 2/5/2013
Agenda Date: 2/5/2013 Agenda Item Number: 11A25
Notes: Title: RESOLUTION OPPOSING LEGISLATION BY THE FLORIDA LEGISLATURE DURING THE 2013 SESSION THAT WOULD RAISE THE CAP ON CURRENT ANNUAL PROPERTY INSURANCE RATE INCREASES BY CITIZENS PROPERTY INSURANCE CORPORATION
Indexes: INSURANCE
  LEGISLATURE
  PROPERTY
Sponsors: Rebeca Sosa, Prime Sponsor
  Lynda Bell, Co-Sponsor
  Sally A. Heyman, 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 2/5/2013 11A25 Adopted P

County Attorney 1/29/2013 Assigned Jess M. McCarty 1/29/2013

Legislative Text


TITLE
RESOLUTION OPPOSING LEGISLATION BY THE FLORIDA LEGISLATURE DURING THE 2013 SESSION THAT WOULD RAISE THE CAP ON CURRENT ANNUAL PROPERTY INSURANCE RATE INCREASES BY CITIZENS PROPERTY INSURANCE CORPORATION

BODY
WHEREAS, Citizens Property Insurance Corporation (Citizens) is a state-created, not-for-profit governmental entity, the public purpose of which is to provide property insurance coverage to those unable to find affordable coverage in the private market; and
WHEREAS, during a special session in January, 2007, the Florida Legislature enacted Chapter No. 2007-1, Laws of Florida (HB 1A), which froze Citizens’ rates at 2006 levels; and
WHEREAS, Citizens rates remained frozen until 2009, when the Florida Legislature enacted Chapter No. 2009-87, Laws of Florida (HB 1495), an omnibus property insurance bill, which among other provisions, implemented an incremental Citizens property insurance rate increase capped at 10 percent per year until Citizens rates were actuarially sound; and
WHEREAS, even at rate increases of up to 10 percent per year, Citizens asserts that its rates are not actuarially sound; and
WHEREAS, the chairman of the House Insurance and Banking Subcommittee, Representative Bryan Nelson (R - Apopka), has indicated that he would support legislation increasing the current 10 percent annual cap on Citizens rate increases to 13 percent; and
WHEREAS, such additional rate increases would disproportionately affect homeowners in Miami-Dade County and the rest of South Florida where Citizens insures a large share of properties; and
WHEREAS, the State of Florida has enjoyed several years without any major storms which has allowed Citizens to build up significant amounts in reserves; and
WHEREAS, under existing law, Citizens can increase property insurance rates as much as 10 percent each year; and
WHEREAS, this Board has significant concerns with any legislation that would allow Citizens to further increase property insurance rates for homeowners during these challenging economic times; and
WHEREAS, this Board opposes legislation that would allow Citizens rates to increase by at an even higher rate each year than the current 10 percent, such as the 13 percent annual rate increase cap currently being considered in the House,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board:
Section 1. Strongly opposes any legislation by the Florida Legislature during the 2013 session that would raise the cap on current annual property insurance rate increases by Citizens Property Insurance Corporation.
Section 2. Directs the Clerk of the Board to transmit certified copies of this resolution to the Governor, Senate President, House Speaker, the Chair and Members of the Miami-Dade State Legislative Delegation, Chairman of the Senate Banking and Insurance Committee Senator David Simmons, Chairman of the House Insurance and Banking Subcommittee Representative Bryan Nelson, Florida's Insurance Commissioner, and the President of the Citizens Property Insurance Corporation.
Section 3. Directs the County’s state lobbyist to advocate against any legislation that would raise the cap on current annual property insurance rate increases by Citizens Property Insurance Corporation as set forth in Section 1 above, and authorizes and directs the Office of Intergovernmental Affairs to amend the 2013 State Legislative Package to include this item.



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