Florida Governor Rick Scott Signs Bill Relating to Citizens Property Insurance Assessments (HB 1127)
Apr 9, 2012
HB 1127 by State Representative Ben Albritton was signed by Florida Governor Rick Scott on Friday, April 6, 2012.
The bill eliminates the regular assessment for Citizens Property Insurance Corporation’s (“Citizens”) Personal and Commercial Lines Accounts (“PLA” and “CLA”), and reduces the assessment amount for Citizens’ Coastal Account from 6 percent to 2 percent. However, the reduction of the regular assessment in the Coastal Account and its elimination for deficits in the PLA and CLA will not reduce the overall assessment authority of Citizens. Instead, greater levies will be imposed through emergency assessments, which are levied on all lines of property and casualty policies (except workers’ compensation and medical malpractice) in Florida, including Citizens’ own policies.
HB 1127 also makes revisions designed to assist Citizens in the promulgation and collection of assessments. Citizens is authorized to levy the policyholder surcharge, a regular assessment for the Coastal Account, and emergency assessments upon a determination by the Citizens Board of Directors that a Citizens account has a projected deficit.
The Florida Office of Insurance Regulation (“OIR”) is authorized to assist Citizens to collect assessments in any way that the OIR deems appropriate. Assessable insurers and the Florida Surplus Lines Service Office must begin collecting and paying the emergency assessments within 90 days after Citizens levies such assessments. Limited apportionment companies must also begin collecting regular assessments within 90 days of their levy by Citizens. However, the bill expands the time limited apportionment companies have to pay regular assessments in full from 12 months to 15 months after Citizens levies the assessment.
These provisions take effect July 1, 2012.
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