Florida Commission on Hurricane Loss Projection Methodology Approves Windstorm Mitigation Credit Report

Jan 25, 2010

On Monday, January 25, 2010, the Florida Commission on Hurricane Loss Projection Methodology (“Commission”) Windstorm Mitigation Committee (“Committee”) met to continue its discussion on the pending windstorm mitigation discounts report (“report”). The report is due to the Florida Governor, Cabinet, President of the Senate and Speaker of the House on February 1, 2010.

Chairman Randy Dumm opened the meeting with a review of the report, in which many problems with Florida’s current mitigation credit system are acknowledged.  For example, the report states that a significant portion of wind premiums collected by insurers are lost due to the allocation of mitigation credits.

The Committee discussed changes made to the January 21, 2010 draft proposal.  To view the working draft of the report, click here.

After further discussion and a motion by Jack Nicholson, the Committee voted to change a recommendation relating to the inspection process that would require property owners be responsible for an inspection co-payment not to exceed $25.00.

In regard to data call issues, the Committee voted to strike a reference to the collection of data by ZIP Codes, as well as a related provision that the data be publicly available.

After some technical and clarifying changes to the January 21, 2010 report draft, the Commission approved the executive summary.  Florida Insurance Consumer Advocate Sean Shaw voted against it.

The Committee discussed and made recommended changes to the body of the report that correlated to those made in the executive summary. 

After further discussion on the rate making and inspection process as described in the report’s working draft, the Committee approved the body of the report with the technical and clarifying changes. 

The Committee also voted to authorize Commission staff is make further grammatical changes, if necessary, before finalizing and submitting the report to the required parties noted above.

 

Should you have any questions or comments, please contact Colodny Fass.

 

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