93-20877 Reso YY
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RESOLUTION NO. 93-20877
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA,
PROHIBITING THE CITY OF MIAMI BEACH FROM
TRANSACTING BUSINESS WITH ANY INSURANCE
COMPANY, ITS SUBSIDIARY, PARENT, PARENT'S
SUBSIDIARY, AND ANY OTHER ENTITY RELATED TO
INSURANCE COMPANIES WHICH CANCELS OR FAILS TO
RENEW ANY PERSONAL OR COMMERCIAL LINES
PROPERTY INSURANCE POLICY IN THE CITY OF MIAMI
BEACH ON THE BASIS OF RISK OF HURRICANE CLAIMS
AND/OR CLAIMS ARISING AS A CONSEQUENCE OF
HURRICANE ANDREW.
WHEREAS, Miami Beach homeowners have encountered significant
problems obtaining property insurance; and
WHEREAS, Miami Beach homeowners are faced with the difficulty
of obtaining property insurance because certain insurance companies
have terminated or severely limited policies issued to Miami Beach ,
homeowners, or completely' refused to underwrite policies for Miami
Beach residents; and
WHEREAS, despite causing such hardship to Miami Beach
residents, certain of these insurance companies and/or their
subsidiaries are enjoying the benefits of continuing to do business
in Miami Beach in other insurance-related areas such as bond
underwriting, life insurance, performance and payment bonds,
liability insurance, health insurance, and workers' compensation
insurance; and
WHEREAS, this Commission finds that it is unfair for these
insurance companies to continue to engage in these financially
lucrative businesses in Miami Beach while refusing to provide
essential property insurance; and
WHEREAS, this Commission finds that it is sound public policy
to encourage insurance companies to continue to provide residential
and commercial property insurance to Miami Beach homeowners and
that those companies which fail to do so indicate a lack of
financial responsibility; and
WHEREAS, the City Commission can best achieve this policy by
prohibiting the City of Miami Beach from transacting any business
with any insurance company that has cancelled or failed to renew
any personal or commercial lines property insurance policy in Miami
Beach on ,the basis of the risk of hurricane claims and/or claims
arising as a consequence of Hurricane Andrew.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the City of
Miami Beach, its departments, agencies or boards are hereby
prohibited from transacting any type of business including, but not
limited to, obtaining liability insurance, workers' compensation
insurance, bond underwriting services, payment and performance
bonds, health insurance or any other type of insurance that may be
supplied in the normal and customary exercise of the duties and
responsibilities of the City of Miami Beach, with any insurance
company, its subsidiary, its parent company, any subsidiary of its
parent and any other entity related to the insurance company which
cancels or fails to renew any personal or commercial lines property
insurance policies to residents of Miami Beach on the basis of the '
risk of hurricane claims and/or claims arising as a consequence of
• Hurricane Andrew. The provisions of this resolution shall apply to
transactions approved by the Commission prior to the adoption of
this resolution where such prohibition and/or cancellation of
existing insurance policies will not materially affect the rights
of the beneficiaries, retirees, and other insured members of City's
Group Insurance Plans and will not create any legal liability on
the part of the City.
PASSED and ADOPTED this 8th day o September l , 1993.
ATTEST:
,r I MAYOR
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k.J FORM APPROVED
CITY CLERK
LEG ► PT. a0
By Ii .:_i
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OFFICE OF THE CITY ATTORNEY
ty ward
F L O R I D A
LAURENCE FEINGOLD P 0 BOX 0
CITY ATTORNEY H1 -MIAMI BEACH.FLORIDA 33119-2032
TELEPHONE(305)673-7470
TELECOPY 1305)673-7002
COMMISSION MEMORANDUM NO: 4-23-93
DATE: SEPTEMBER 8, 1993
TO: MEMBERS OF THE CITY COMMISSIO /
CITY MANAGER ROGER M. CARLTON
FROM: MAYOR SEYMOUR GELBER
SUBJECT: PROPOSED RESOLUTION PROHIBITING THE CITY OF MIAMI
BEACH FROM TRANSACTING BUSINESS WITH ANY INSURANCE
COMPANY, ITS SUBSIDIARY, PARENT, PARENT'S SUBSIDIARY,
AND ANY. OTHER ENTITY RELATED TO INSURANCE COMPANY
WHICH CANCELS OR FAILS' TO RENEW ANY PERSONAL OR
COMMERCIAL LINES PROPERTY INSURANCE POLICY IN THE
CITY OF MIAMI BEACH ON THE BASIS OF RISK OF HURRICANE
CLAIMS AND/OR CLAIMS ARISING AS A CONSEQUENCE OF
HURRICANE ANDREW.
Notwithstanding the fact that property damage claims from
Hurricane Andrew within the City of Miami Beach have not been
excessive compared to other parts of Dade County, Miami Beach
homeowners are encountering significant problems in obtaining
property insurance. Certain insurance companies have terminated or
severely limited policies issued to Miami Beach homeowners, or
completely refused to underwrite policies for Miami Beach
residents.
This arbitrary conduct is offensive to this City Commission
and to the residents of this City and has caused great hardship to
them. It is therefore totally inequitable that the same insurance
companies and their. subsidiaries continue to do business not only
in the City of Miami Beach but with the City of Miami Beach in
other insurance-related areas such as dental and life insurance.
On June 17, 1993 the Board of County Commission of Dade
County, Florida by Resolution No. 754-93, prohibited Metropolitan
Dade County from transacting business with any insurance company,
its subsidiary, parent, parent's subsidiary, and any other entity
related to an insurance company which cancels or fails to renew any
personal or commercial lines property insurance policy in Dade
County on the basis:;o_f-_ risk of hurricane claims and/or claims
arising as a consequence of Hurricane Andrew.
The same justification which compelled the Dade County
Commission to pass its resolution, compels this City Commission to
forthwith prohibit the City with doing business with any insurance
company which cancels or fails to renew any home or commercial
property insurance on the basis of the risk of future hurricane
claims or claims arisingias a consequence of Hurricane Andrew.
In addition to the proposed Resolution, this Commission is
referred to the attached memorandum by City Attorney Laurence
Feingold regarding the propriety of termination of existing 2,
insurance policies with insurers who have refused to insure Miami
Beach residents. By way of further action it is urged that this
AGENDA
ITEM , l
CONVENTION CENTER DRIVE- FOURTr+. FLOOR - MIAMI BE 9 _5?„__93
DATE
• Members of the City Commission
City Manager Roger M. Carlton
September 8, 1993 •
Page Two
City Commission direct the City Administration to forthwith meet
with Towers Perrin, the City's Benefit Consultant, and the
Insurance Board to prepare a joint report to be presented before
this Commission on September 22, 1993 specifying whether the City's
life insurance and dental insurance plans presently held by the .
Prudential Insurance Company of America and the Prudential Life
Insurance Company of America ("Prudential") may be promptly
replaced by alternate coverage without adversely affecting the
• present benefits of the employees, retirees, and other
beneficiaries of the group plans.
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