The bill amends section 627.351 of the Florida Statutes, specifically regarding the rates for coverage provided by the Citizens Property Insurance Corporation. It establishes that the limitations on annual rate increases will not apply to new policies issued on or after June 1, 2026, as well as to subsequent renewals of those policies. However, there is an exception for new policies covering primary residences in counties where the office determines there is insufficient competition in the insurance market.

Additionally, the bill maintains that rates must remain actuarially sound and not competitive with those in the voluntary market. The corporation is required to file recommended rates annually, and the office will issue a final order on these rates within 45 days. The bill also outlines specific annual rate increase caps for the years 2023 through 2026, after which the new provisions will take effect. Overall, the changes aim to provide more flexibility in rate setting for new policies while ensuring that existing regulations regarding actuarial soundness and market competitiveness are upheld.

Statutes affected:
S 634 Filed: 627.351