On December 8, 2009, State Representative Bill Proctor filed HB 447, An Act Relating to Residential Property Insurance, in the Florida Legislature.  HB 447 would permit insurers to charge rates higher than those they have filed with the Florida Office of Insurance Regulation (FOIR) for residential property insurance that covers hurricane or windstorm risk, as long as the insurers comply with certain new requirements set forth in HB 447.  Under the current system, insurers must obtain approval for any rate increases from the FOIR.

 HB 447 also seeks to level the playing field for private insurers who compete against Florida’s state-run insurer of last resort, Citizens Property Insurance Co. (“Citizens”), by requiring in the event of a deficit that Citizens must first levy its policyholders for a 15% surcharge on their policies before it can levy an assessment on private insurance policies. 

 As we reported here, Rep. Proctor sponsored a similar bill last Spring in an effort to prevent State Farm’s withdrawal from the Florida property insurance market.  The State Farm bill passed the Florida legislature by a wide margin, only to be vetoed by Florida Governor Charlie Crist due to concern that the bill would cause “significant and unpredictable rate increases.” 

 To view the complete text HB 447, click here.