On March 17, 2010, the House Insurance, Business, and Financial Affairs Committee passed CS/HB 447, a scaled-back rate regulation bill that increases insurers' flexibility in ratemaking without providing full rate deregulation. At the urging of the bill's sponsor, Rep. William Proctor (R-St. Augustine), the committee adopted amendments that cap an insurer's ability to raise rates without regulatory approval and incorporate provisions from other property insurance proposals.
The 2009 Legislature passed a rate deregulation bill, but Gov. Charlie Crist vetoed that bill. The original version of the 2010 bill was similar in many respects to the vetoed 2009 bill.
As amended, the House bill provides limited authority for a residential property insurer to raise rates without regulatory approval, but the increase is capped at a statewide average five-percent increase in the first year, 10 percent in the second year, and 15 percent in subsequent years. The bill also was amended to address several other property insurance issues, including Citizens Property Insurance Corp. assessments, hurricane-loss mitigation discounts, replacement cost coverage, and sinkhole claims.