ENROLLED
CS/CS/CS/HB 799, Engrossed 1 2023 Legislature
CODING: Words stricken are deletions; words underlined are additions.
hb0799-05-er
Page 1 of 11
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1
An act relating to property insurance; amending s. 2
627.062, F.S.; requiring residential property 3
insurance rate filings to account for windstorm 4
mitigation measures undertaken by policyholders; 5
amending s. 627.0629, F.S.; requiring wind uplift 6
prevention to be included in windstorm damage 7
mitigation techniques for residential property 8
insurance rate filings; amending s. 627.351, F.S.; 9
revising rate change limitations for specified 10
policies written by the Citizens Property Insurance 11
Corporation; revising the applicability of flood 12
coverage requirements for personal lines residential 13
policyholders of the corporation; authorizing the 14
corporation to adopt policy forms that provide for the 15
resolution of certain disputes in proceedings before 16
the Division of Administrative Hearings; providing 17
that such policies are not subject to mandatory 18
binding arbitration provisions; specifying applicable 19
requirements, procedures, and restrictions relating to 20
such proceedings; creating s. 627.7155, F.S.; 21
prohibiting a property insurer that requires flood 22
coverage as a condition for wind coverage from denying 23
certain claims except under certain circumstances; 24
specifying a type of acceptable proof of coverage; 25
ENROLLED
CS/CS/CS/HB 799, Engrossed 1 2023 Legislature
CODING: Words stricken are deletions; words underlined are additions.
hb0799-05-er
Page 2 of 11
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
providing an appropriation; requiring a wind -loss 26
mitigation study conducted by the Office of Insurance 27
Regulation; providing requirements for the study; 28
providing reporting requirements; providing effective 29
dates. 30
31
Be It Enacted by the Legislature of the State of Florida: 32
33
Section 1. Paragraph (j) of subsection (2) of section 34
627.062, Florida Statutes, is amended to read: 35
627.062 Rate standards. — 36
(2) As to all such classes of insurance: 37
(j) With respect to residential property insurance rate 38
filings, the rate filing must account for mitigation measures 39
undertaken by policyholders to reduce hurricane losses and 40
windstorm losses. 41
42
The provisions of this subsection do not apply to workers' 43
compensation, employer's liability insurance, and motor vehicle 44
insurance. 45
Section 2. Subsection (1) of section 627.0629, Florida 46
Statutes, is amended to read: 47
627.0629 Residential property insurance; rate filings. — 48
(1) It is the intent of the Legislature that insu rers 49
provide savings to consumers who install or implement windstorm 50
ENROLLED
CS/CS/CS/HB 799, Engrossed 1 2023 Legislature
CODING: Words stricken are deletions; words underlined are additions.
hb0799-05-er
Page 3 of 11
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
damage mitigation techniques, alterations, or solutions to their 51
properties to prevent windstorm losses. A rate filing for 52
residential property insurance must include actuarially 53
reasonable discounts, credits, or other rate differentials, or 54
appropriate reductions in deductibles, for properties on which 55
fixtures or construction techniques demonstrated to reduce the 56
amount of loss in a windstorm have been installed or 57
implemented. The fixtu res or construction techniques must 58
include, but are not limited to, fixtures or construction 59
techniques that enhance wind uplift prevention, roof strength, 60
roof covering performance, roof -to-wall strength, wall-to-floor-61
to-foundation strength, opening pro tection, and window, door, 62
and skylight strength. Credits, discounts, or other rate 63
differentials, or appropriate reductions in deductibles, for 64
fixtures and construction techniques that meet the minimum 65
requirements of the Florida Building Code must be in cluded in 66
the rate filing. The office shall determine the discounts, 67
credits, other rate differentials, and appropriate reductions in 68
deductibles that reflect the full actuarial value of such 69
revaluation, which may be used by insurers in rate filings. 70
Section 3. Effective upon becoming a law, paragraphs (n) 71
and (aa) of subsection (6) of section 627.351, Florida Statutes, 72
are amended, and paragraph (ll) is added to that subsection, to 73
read: 74
627.351 Insurance risk apportionment plans. — 75
ENROLLED
CS/CS/CS/HB 799, Engrossed 1 2023 Legislature
CODING: Words stricken are deletions; words underlined are additions.
hb0799-05-er
Page 4 of 11
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
(6) CITIZENS PROPERTY INSURANCE CORPORATION. — 76
(n)1. Rates for coverage provided by the corporation must 77
be actuarially sound pursuant to s. 627.062 and not competitive 78
with approved rates charged in the admitted voluntary market so 79
that the corporation functions as a residual market mechanism to 80
provide insurance only when insurance cannot be procured in the 81
voluntary market, except as otherwise provided in this 82
paragraph. The office shall provide the corporation such 83
information as would be necessary to determine whe ther rates are 84
competitive. The corporation shall file its recommended rates 85
with the office at least annually. The corporation shall provide 86
any additional information regarding the rates which the office 87
requires. The office shall consider the recommenda tions of the 88
board and issue a final order establishing the rates for the 89
corporation within 45 days after the recommended rates are 90
filed. The corporation may not pursue an administrative 91
challenge or judicial review of the final order of the office. 92
2. In addition to the rates otherwise determined pursuant 93
to this paragraph, the corporation shall impose and collect an 94
amount equal to the premium tax provided in s. 624.509 to 95
augment the financial resources of the corporation. 96
3. After the public hurri cane loss-projection model under 97
s. 627.06281 has been found to be accurate and reliable by the 98
Florida Commission on Hurricane Loss Projection Methodology, the 99
model shall be considered when establishing the windstorm 100
ENROLLED
CS/CS/CS/HB 799, Engrossed 1 2023 Legislature
CODING: Words stricken are deletions; words underlined are additions.
hb0799-05-er
Page 5 of 11
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
portion of the corporation's rates. T he corporation may use the 101
public model results in combination with the results of private 102
models to calculate rates for the windstorm portion of the 103
corporation's rates. This subparagraph does not require or allow 104
the corporation to adopt rates lower than the rates otherwise 105
required or allowed by this paragraph. 106
4. The corporation must make a recommended actuarially 107
sound rate filing for each personal and commercial line of 108
business it writes. 109
5. Notwithstanding the board's recommended rates and the 110
office's final order regarding the corporation's filed rates 111
under subparagraph 1., the corporation shall annually implement 112
a rate increase which, except for sinkhole coverage, does not 113
exceed the following for any single policy issued by the 114
corporation, excluding coverage changes and surcharges: 115
a. Twelve percent for 2023. 116
b. Thirteen percent for 2024. 117
c. Fourteen percent for 2025. 118
d. Fifteen percent for 2026 and all subsequent years. 119
6. The corporation may also implement an increase to 120
reflect the effect on the corporation of the cash buildup factor 121
pursuant to s. 215.555(5)(b). 122
7. The corporation's implementation of rates as prescribed 123
in subparagraphs 5. and 8. shall cease for any line of business 124
written by the corporation upon the corporat ion's implementation 125
ENROLLED
CS/CS/CS/HB 799, Engrossed 1 2023 Legislature
CODING: Words stricken are deletions; words underlined are additions.
hb0799-05-er
Page 6 of 11
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
of actuarially sound rates. Thereafter, the corporation shall 126
annually make a recommended actuarially sound rate filing that 127
is not competitive with approved rates in the admitted voluntary 128
market for each commercial and personal line of business the 129
corporation writes. 130
8. The following For any new or renewal personal lines 131
policies policy written on or after November 1, 2023, are which 132
does not cover a primary residence, the rate to be applied in 133
calculating premium is not subject to the rate increase 134
limitations in subparagraph 5. , but However, the policyholder 135
may not be charged more than 50 percent above, nor less than, 136
the prior year's and may not be charged less than, the 137
established rate for the corporation : which was in effect 1 year 138
before the date of the application 139
a. Policies that do not cover a primary residence; 140
b. New policies under which the coverage for the insured 141
risk, before the date of application with the corporation, was 142
last provided by an insurer determined by the office to be 143
unsound or an insurer placed in receivership under chapter 631; 144
or 145
c. Subsequent renewals of those policies, including the 146
new policies in sub-subparagraph b., under which the coverage 147
for the insured risk, before the date of applicat ion with the 148
corporation, was last provided by an insurer determined by the 149
office to be unsound or an insurer placed in receivership under 150
ENROLLED
CS/CS/CS/HB 799, Engrossed 1 2023 Legislature
CODING: Words stricken are deletions; words underlined are additions.
hb0799-05-er
Page 7 of 11
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
chapter 631. 151
9. As used in this paragraph, the term "primary residence" 152
means the dwelling that is the policyholde r's primary home or is 153
a rental property that is the primary home of the tenant, and 154
which the policyholder or tenant occupies for more than 9 months 155
of each year. 156
(aa) Except as otherwise provided in this paragraph, the 157
corporation shall require the sec uring and maintaining of flood 158
insurance as a condition of coverage of a personal lines 159
residential risk. The insured or applicant must execute a form 160
approved by the office affirming that flood insurance is not 161
provided by the corporation and that if floo d insurance is not 162
secured by the applicant or insured from an insurer other than 163
the corporation and in addition to coverage by the corporation, 164
the risk will not be eligible for coverage by the corporation. 165
The corporation may deny coverage of a personal lines 166
residential risk to an applicant or insured who refuses to 167
secure and maintain flood insurance. The requirement to purchase 168
flood insurance shall be implemented as follows: 169
1. Except as provided in subparagraphs 2. and 3., all 170
personal lines resid ential policyholders must have flood 171
coverage in place for policies effective on or after: 172
a. January 1, 2024, for a structure that has a dwelling 173
replacement cost of property valued at $600,000 or more. 174
b. January 1, 2025, for a structure that has a d welling 175
ENROLLED
CS/CS/CS/HB 799, Engrossed 1 2023 Legislature
CODING: Words stricken are deletions; words underlined are additions.
hb0799-05-er
Page 8 of 11
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
replacement cost of property valued at $500,000 or more. 176
c. January 1, 2026, for a structure that has a dwelling 177
replacement cost of property valued at $400,000 or more. 178
d. January 1, 2027, for all other personal lines 179
residential property insu red by the corporation. 180
2. All personal lines residential policyholders whose 181
property insured by the corporation is located within the 182
special flood hazard area defined by the Federal Emergency 183
Management Agency must have flood coverage in place: 184
a. At the time of initial policy issuance for all new 185
personal lines residential policies issued by the corporation on 186
or after April 1, 2023. 187
b. By the time of the policy renewal for all personal 188
lines residential policies renewing on or after July 1, 2023. 189
3. Policyholders whose policies issued by the corporation 190
do not provide coverage for the peril of wind are not required 191
to purchase flood insurance as a condition for maintaining the 192
following their policies issued by with the corporation: 193
a. Policies that do not provide coverage for the peril of 194
wind. 195
b. Policies that provide coverage under a condominium unit 196
owners form. 197
198
The flood insurance required under this paragraph must meet, at 199
a minimum, the coverage available from the National Flood 200
ENROLLED
CS/CS/CS/HB 799, Engrossed 1 2023 Legislature
CODING: Words stricken are deletions; words underlined are additions.
hb0799-05-er
Page 9 of 11
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
Insurance Program or the requirements of subparagraphs s. 201
627.715(1)(a)1., 2., and 3. 202
(ll) In addition to any other method of alternative 203
dispute resolution authorized by state law, the corporation may 204
adopt policy forms that provide for the resolution of disputes 205
regarding its claim determinations, including disputes regarding 206
coverage for, or the scope and value of, a claim, in a 207
proceeding before the Division of Administrative Hearings. Any 208
such policies are not subject to s. 627.70154. All proceedings 209
in the Division of Administrative Hearings pursuant to such 210
policies are subject to ss. 57.105 and 768.79 as if filed in the 211
courts of this state and are not considered chapter 120 212
administrative proceed ings. Rule 1.442, Florida Rules of Civil 213
Procedure, applies to any offer served pursuant to s. 768.79, 214
except that, notwithstanding any provision in Rule 1.442, 215
Florida Rules of Civil Procedure, to the contrary, an offer 216
shall not be served earlier than 10 days after filing the 217
request for hearing with the Division of Administrative Hearings 218
and shall not be served later than 10 days before the date set 219
for the final hearing. The administrative law judge in such 220
proceedings shall award attorney fees and oth er relief pursuant 221
to ss. 57.105 and 768.79. The corporation may not seek, and the 222
office may not approve, a maximum hourly rate for attorney fees. 223
Section 4. Effective October 1, 2023, section 627.7155, 224
Florida Statutes, is created to read: 225
ENROLLED
CS/CS/CS/HB 799, Engrossed 1 2023 Legislature
CODING: Words stricken are deletions; words underlined are additions.
hb0799-05-er
Page 10 of 11
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
627.7155 Wind and flood coverage in residential and 226
commercial property insurance policies. —For residential and 227
commercial property insurance policies issued or renewed on or 228
after October 1, 2023: 229
(1) If a residential or commercial property insurer 230
requires that an insured or applicant have coverage for the 231
peril of flood when the insurer issues a policy covering the 232
peril of wind, unless the insurer verifies that the insured or 233
applicant has coverage for the peril of flood at the time the 234
policy was issued or r enewed, the insurer may not deny a claim 235
for wind solely because the insured does not have coverage for 236
the peril of flood, unless flood coverage that was verified at 237
the time of application or renewal, or equivalent coverage, is 238
not in force at the time o f the loss. 239
(2) In addition to coverage for the peril of flood 240
directly secured by the insured or applicant, a master flood 241
policy that is issued to someone other than the insured or 242
applicant and that includes the insured or applicant as an 243
intended or third-party beneficiary under the master flood 244
policy is acceptable proof of coverage for the peril of flood 245
for the purposes of this section. 246
Section 5. For the 2023-2024 fiscal year, the nonrecurring 247
sum of $750,000 from the Insurance Regulatory Trus t Fund is 248
appropriated to the Office of Insurance Regulation to 249
competitively procure a wind -loss mitigation study. The office, 250
ENROLLED
CS/CS/CS/HB 799, Engrossed 1 2023 Legislature
CODING: Words stricken are deletions; words underlined are additions.
hb0799-05-er
Page 11 of 11
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
in consultation with the Department of Business and Professional 251
Regulation and the Florida Building Commission, shall conduct a 252
residential wind-loss mitigation study to evaluate the windstorm 253
loss relativities for construction features, including, but not 254
limited to, wind uplift prevention, methods and devices to 255
prevent water intrusion through the tracks of sliding glass 256
doors, and those that enhance roof strength; roof covering 257
performance; roof-to-wall strength; wall-to-floor-to-foundation 258
strength; opening protections; and window, door, and skylight 259
strength. The study must include single -family and multifamily 260
homes, mobile homes, and manufactured housing. In addition, the 261
study must include, but need not be limited to, an analysis of 262
developed hurricane loss data for hurricanes since June 1, 2018. 263
The office may use a portion of the funds appropriated to 264
contract separately w ith building code experts in order to 265
implement this act and adopt rules. The findings of the study 266
shall be reported to the Governor, the President of the Senate, 267
the Speaker of the House of Representatives, the Chief Financial 268
Officer, and the Commission er of Insurance Regulation no later 269
than July 1, 2024. 270
Section 6. Except as otherwise expressly provided in this 271
act and except for this section, which shall take effect upon 272
this act becoming a law, this act shall take effect July 1, 273
2023. 274