2002-24774 Reso
RESOLUTION NO. 2002-24774
A RESOLUTION OF THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH,
FLORIDA, SUPPORTING PROPOSED LEGISLATION TO
RELIEVE THE EXCESSIVE WINDSTORM INSURANCE
RATES ON COASTAL COMMUNITIES AND URGING
THE FLORIDA STATE LEGISLATURE TO APPROVE
SAID MEASURES.
WHEREAS, the Florida Windstorm Underwriting Association has proposed a rate
structure that would significantly increase rates paid by residents of the City of Miami Beach
and other coastal communities; and
WHEREAS, the proposed rate structure does not adequately consider the City of
Miami Beach's building codes, emergency response systems and other elements of local loss
prevention and mitigation; and
WHEREAS, affordable insurance premiums, fairly based on the risk factors and loss
prevention efforts, directly relate to the economic vitality of Miami Beach; and
WHEREAS, House/Senate Bill HB67/SB156 sponsored by House Representative
Sally Heyman and Senator Ron Silver promotes fairness in rates; ability to challenge
discriminating practices; protecting policy providers who offer affordable windstorm
coverage; and greater consumer participation in Florida Windstorm Underwriting
Association rate formula setting;
NOW,.THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND
CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Miami
Beach City Commission supports the proposed legislation embodied in House/Senate Bill
HB67/SB 156 sponsored by House Representative Sally Heyman and Senator Ron Silver
seeking to relieve excessive and rising windstorm insurance rates and the current rate
structure, and urges the State Legislature to approve and adopt said measures.
PASSED and ADOYfED this 20th
ATTEST:
_~ <f ~ dM"-
CITY CLERK
, 2002.
APPROVED AS TO
FORM & LANGUAGE
& FOR exEClJnON
;;).-(? - 02-
,.,."..
CITY OF MIAMI BEACH
OFFICE OF THE MAYOR & COMMISSION
TO: JORGE M. GONZALEZ
CITY MANAGER
FROM:
DAVID DERMER
MAYOR
~))
SUBJECT: RESOLUTION - RATE STRUCTURE AND RISING COSTS OF WINDSTORM INSURANCE/
HB67/SB156 HOUSE/SENATE BILL
DATE: 2/19/2002
cc: MURRAY H. DUBBIN
CITY ATIORNEY
Attached please find a Resolution opposing the Florida Windstorm Underwriting Association's
proposed windstorm insurance rate structure and rate increase. Additionally, please find a detailed
list of the key issues of the HB67/SB156 Bill sponsored by Representative Heyman and Senator
Silver. Please add the attached resolution February 20, 2002 City Commission Agenda. Thank you
for your prompt attention to this matter.
I
I,
"
~
Agenda Item fJ. q k.
Date :J.-J..O.. t))....
5-14-1995 6:13AM
FROM
P.2
t
Florida House of Representatives
FOR IMMEDIATE RELEASE:
Feb....ary 21, 2002
FOR MORE INFORMAnON:
Contact: Bonnie Michael,
(850) 488-1028
SEN. SILVER AND REPS. HEYMAN, SORENSEN, ATWATER
CHAMPION CONSUMER PROTECTION AGAINST PROPERTY
INSURANCE RATE HIKES
TALLAHASSEE - Sen. Ron Silver, Reps. Sally Reyman, Ken Sorensen,
Jeff Atwater and other elected officials today shared their efforts to enact
windstorm rate accountability and eODsumer protection r~fonns in the
Florida Windstorm Underwriting Authority (FWUA) ratemaking and
premium process.
lRESS CONFpE~
Thursday, February 21M
1:00 pm .
Capitol Rotuada - 4th floor
(iu front of the House of Representatives)
"We, as a legislative body, for the second year have failed to remedy the
injustices of the current FWUA," said Rep. Sally Heyman, D-North Miami.
"Proposed legislation that protects the property ownerst revises practices to
assist and assure carriers continue to write policies for the Florida markett
and provisions for insurance coverage with greater public involvement and
options for redress have been ignored," stated the unified legislators.
5-14-1995 6:13AM
FROM
1'.3
"Home ownership is the American dream and Florida~s windstorm. insurance
rates are eroding that dream," said Rep. Jeff Atwater, R-No. Palm Beach.
"What we have here is 'economic extortion.' The FWUA is the offender
and the coastal communities are the victim,'~ added Rep. Ken Sorensen, R-
Key Largo.
This legislative body has failed once ~gain to enact any consumer protection
reforms. "When we fail to remedy the injustice of the cutTent FWUA, we
must pursue redress to protect property owners another way," said Sen. Ron
Silver, D-Miami-Dade.
"This is not about partisan politics," agreed all four lawmakers and sponsors
of windstorm legislation. "This is about people being able to afford their
property protection."
###
5-14-1995 6: 14A.M
FROM
P.d
RELATING TO WINDSTORM INSURANCE POLICIES.
HE 67 By Heyman
SB I S6 By Silyer
KEY ISSUES OF BILL
,
.. Provides that insurers' may not use model to determine hurricane' loss factors ror
use in rate filing until FL Commission (In Hurricane .Loss Projection Methodology
finds that the publicly owned model developed by our State University System is
reliable to determine such factors for use in a rate filing.
* FWUA Board Composition (currently 15 members with 12 of 1S representing
insurance carriers and 10 of 15 Don-Florida residents) changed to 12 members: 1
representative of a financial institution engaging in residential mortgage lending
within the associations eligible areas, 1 representative of realtors engaged in the sale
Qfresidentialproperty witbin the associationJs eligible arettS, 1 representative who
has expertise in State minimum Building Codes and coastal construction, 1
association policyholder, 1 representative who is a licensed property and casualty
insW'ance agent and 7 additional members appointed in the plan of operation.
· Repeals rate arbitration for all property insurance rate filings.
* UDeauthorizesu certain eligible areas from the association and implements a
program of assigned risk requiring insurers to select or be assigned policies from
the "deauthorized" area.
III Producing agents shall retain the business, are entitled to act as a brokering agent,
or can be paid a fee by the association. '
... Failure of an insurer to accept the residential.policies selected by the association
constitutes a willful violation of the Florida Insurance Code.
* Amendment: Prohibits FWUA from requiring certain policyholders to carry flood
insurance. (Rep. Sorenson)
I
5-14-1995 6:14AM
FROM
P.5
Florida House of Representatives
Sally A. Heyman
R.epIe.Sentativc. DlsU1et 105
]]00 NS l63rd Street. Suito 303
Nnl1h Miami :Beach. Florida 33162
(305) 9]9-IX88
(30S) 919.-1890 FAX
:210 Hou~ Offi~ Building
402. South Monroe .street
TaJlabllSsce, PJorldll.n~99.1300
(850) 488-1028
SUGGESTED ISSUES FOR AMENDMENT/EXPRESSED
LEGISLATIVE INTENTION: Issues related to HB67/SB156 for
HB1361 Windstorm Bill
Board make-up: under the new structure of seven members, include greater
consumer presence. Also, consider in the make-up people in industries I areas
greatly affected, i.e. Real estate, mortgage lenders, Insurance agents.
Demographically, the make-up should be Florida residents, and majority in the
designated eligible areas.
TYpe of cove raRe: homeowner policies should not have mandated flood
coverage In policies. All policies should have language re: re-insurance
protection.
Quota $hare: eligible areas should be re-evaluated. Current practice of
boundaries (east of 1-95), ~ip codes etc., should be reviewed as factors re: quota
shares for properties to be included in the eligible area.
Ellalble wind coveraae: re-evaluate policies for varied protection coverage
both for determining where coverage is justified and methodQlogy used to
determine loss factors for the rate filing in specific areas; and wh.t coverage is
availed based on loss factors, building codes, etc.
Aaent comDensation: allow producing agents to retain business and be entitled
to act as brokering agents or receive fee from association,
Wind rates: assure rates can be challenged in court by Insurance commissioner
(or State CFO or other elected cabinetperson who has authority over insurance
industry: assure public hearings and public input on the rate formula.
Committees: Collcgca and UnivKmlitks . Council for Healthy Communitie.~ - Council for Ready Jftfmtruotare
Crime Preve.nbOft, CO)U'lX'tions &. Safety. Touri3m (Vice Chair)