99-23113 RESO
RESOLUTION NO. 99-23113
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, OPPOSING
THE FLORIDA WINDSTORM UNDERWRITING
ASSOCIATION'S PROPOSED WINDSTORM INSURANCE
RATE STRUCTURE AND RATE INCREASE.
WHEREAS, the Florida Windstorm Underwriting Association has proposed a new rate
structure that would significantly increase rates paid by residents of the City of Miami Beach; 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;
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 opposes the Florida Windstorm Underwriting Association's proposed new windstorm
insurance rate structure and proposed rate increase.
PASSED and ADOPTED this 14th day of April
,1999.
ATTEST:
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MAYOR
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CITY CLERK
APPROVED p.s TO
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& FOR EXECUTION
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CITY OF MIAMI BEACH
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COMMISSION MEMORANDUM No.2 52 -L15
TO:
Mayor Neisen O. Kasdin
Members of the City ommission
DATE: April 14, 1999
FROM: Sergio Rodriguez
City Manager
SUBJECT: A RESOLU ON OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, OPPOSING THE FLORIDA
WINDSTORM UNDERWRITING ASSOCIATION'S PROPOSED
WINDSTORM INSURANCE RATE STRUCTURE AND RATE INCREASE.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
BACKGROUND
The Florida Windstorm Underwriting Association (FWUA) has proposed a new rate structure that
would significantly increase rates paid by residents throughout the State of Florida; possibly as much
as by 253 percent along the Miami-Dade County coast, including Miami Beach. The proposed rate
structure and corresponding increase is due to be filed with Insurance Commissioner Bill Nelson this
month. Commissioner Nelson has ninety days to consider the proposal. If Commissioner Nelson
rejects the filing, it will go to an independent arbitration panel.
ANAL YSIS
The proposed rate structure and rate increase changes the rating system from the potential loss
incurred as a result of fire damage to the potential loss incurred as a result of wind damage. Our
State Lobbyists have reviewed the proposed filing and urge the City to oppose it because the new
rate structure is unsubstantiated and does not adequately consider the City of Miami Beach's building
codes. emergency response systems and other elements of local loss prevention and mitigation. The
potential impact of this rate increase on Miami Beach homeowners is significant despite discounts
proposed by FWUA for various wind-resistant features. Many of the City's residents are on fixed
incomes and would be unable to afford such an exorbitant rate increase without warning.
DATE
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AGENDA ITEM
CONCLUSION
The Administration recommends that the Mayor and City Commission adopt the attached Resolution
opposing the Florida Windstorm Underwriting Association's proposed new windstorm insurance rate
structure and proposed rate increase.
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