No. SB 1024
Filed under Insurance.
Coverage by Citizens Property Insurance Corporation; Revising eligibility for coverage of residential structures in certain counties by Citizens Property Insurance Corporation; requiring the corporation to implement certain rate increases annually in such counties for single policies issued by the corporation; providing additional policies issued by the corporation which do not require policyholders to purchase flood insurance as a condition for maintaining the policies, etc.
Plain English Summary
AI-GENERATEDIn a county the state finds lacks a reasonable degree of competition among private insurers, Citizens must cap its annual rate increase at 10 percent for any single policy, well below the 15 percent cap that otherwise applies statewide starting in 2026.
The same underserved counties get a higher eligibility ceiling: a personal lines home there now qualifies for Citizens coverage with a dwelling replacement cost of up to $1.5 million, raised from $1 million.
Citizens' mandatory flood-insurance condition no longer applies to a policy covering a FEMA Zone X property, or a structure elevated at least a foot above its flood zone's minimum base elevation, if the office finds that zone or those structures lack a reasonable degree of competition.
Each of these changes depends on the Office of Insurance Regulation's own finding that competition is lacking in a specific county, flood zone, or structure type.
AIIn a county the office determines lacks a reasonable degree of competition, the corporation must cap its annual rate increase at 10 percent for any single policy, instead of the 15 percent cap that otherwise applies statewide starting in 2026.
AIIn a county lacking a reasonable degree of competition, a personal lines residential structure now qualifies for Citizens coverage with a dwelling replacement cost of up to $1.5 million, raised from the prior $1 million ceiling.
AIA policy covering a property in FEMA Flood Zone X, or a structure elevated at least 1 foot above its flood zone's minimum base elevation, no longer must carry flood insurance to keep the policy, if the office finds competition lacking in that zone or for that structure.