[*] Associate, Taylor, Day, Currie & Burnett, Tallahassee, Fla.; B.S., Duke University, 1982; J.D., Stetson University, 1996; M.P.H., University of South Florida, 1986. Return to text.

[1] See Act effective May 9, 1997, ch. 97-55, 1997 Fla. Laws 322 (amending FLA. STAT. 627.351 (Supp. 1996)). Return to text.

[2] See FLORIDA LEGIS. WORKING GROUP ON RESIDUAL PROP. INS. MARKETS, FINAL REPORT 1 (1996) [hereinafter FINAL REPORT]. Return to text.

[3] See FLORIDA H.R. COMM. ON INS., FLORIDA'S PROPERTY INSURANCE CRISIS 1 (1994) (on file with comm.) [hereinafter INSURANCE CRISIS]. The $16 billion in insured damages makes Hurricane Andrew the costliest natural disaster in world history. See id. Return to text.

[4] See id. at 6-7. Return to text.

[5] See id. at 1-2. Return to text.

[6] See id. at 14. Return to text.

[7] See id. at 3. Return to text.

[8] See Act effective Apr. 10, 1993, ch. 92-345, 3, 1993 Fla. Laws 1, 7 (codified at FLA. STAT. 627.351(6) (1993)). Return to text.

[9] See FLA. STAT. 627.351(6) (1997). Return to text.

[10] See id. 627.351(6)(b)(3). Return to text.

[11] See id. 627.351(6)(b). Return to text.

[12] See id. 627.351(6)(d)(2). The time limit for this policy has been extended. Additionally, for mobile home policies, the rate must match the top five rather than the top eight insurers as was provided in past years. See id. Return to text.

[13] See id. 627.3511(1) (stating that the Residential JUA has far exceeded initial expectations). Return to text.

[14] See INSURANCE CRISIS, supra note 3, at 2. Return to text.

[15] FLA. STAT. 627.3511(1) (1997). As of November 1996, the Residential JUA provided coverage for approximately 930,000 policy holders. Interview with Wesley Williams, Marketing and Research Analyst, Florida Residential Property and Casualty Joint Underwriting Association, in Tallahassee, Fla. (Sept. 3, 1997) [hereinafter Williams Interview]. Return to text.

[16] See Williams Interview, supra note 15. As of July 1997, the Residential JUA had 151,356 policies in force in Dade County, 104,061 policies in Broward County, and 71,699 policies in Palm Beach County. See id. Return to text.

[17] See e.g., FLA. STAT. 627.3511 (1997) (encouraging insurers to remove policies from the Residential JUA through the payment of an incentive bonus of $100 per policy). As a result, on August 31, 1997, there were 603,463 policies written by the Residential JUA. See Williams Interview, supra note 15. Return to text.

[18] FLA. STAT. 627.351 (1997) (providing for residual market mechanisms which allow insurers in the state to allocate "uninsurable" risks among themselves). Return to text.

[19] "Windstorm insurance" includes coverage against damage caused directly by windstorms and hail. See FWUA, AMENDED AND RESTATED PLAN OF OPERATION AND ARTICLES OF AGREEMENT 2 (1995) (on file with author) [hereinafter FWUA PLAN]. Return to text.

[20] See FLA. STAT. 627.351(5)(a) (Supp. 1970) (current version at FLA. STAT. 627.351(2) (1997)). Return to text.

[21] See id. 627.351(2)(a) (1997). Return to text.

[22] See id. Return to text.

[23] Id. 627.351(2)(c)(2)(a). Return to text.

[24] See id. 627.351(2)(c)(2)(b). Return to text.

[25] See id. 627.351(2)(c)(2)(c). Return to text.

[26] See id. 627.351(2)(b). Return to text.

[27] See FWUA PLAN, supra note 19, at 7. Return to text.

[28] See FLA. STAT. 627.351(2)(b) (1997). Return to text.

[29] See id. 627.351(2)(b)(2)(a) (stating that regular assessments, with some exceptions, are based on the proportion of net direct premiums written in the previous year). Return to text.

[30] See id. 627.351(2)(b)(2) (1993). Return to text.

[31] See id. 627.351(2)(b)(2)(d) (1997). Return to text.

[32] As of January 1997, the FWUA carried 283,000 policies with a total insured value of structure and contents of $49 billion. See Fla. S. Comm. on Banking & Ins., CS for SB 794 (1997) Staff Analysis 3 (Mar. 5, 1997) (on file with comm.) [hereinafter Staff Analysis]. Return to text.

[33] See FLA. STAT. 627.351(2)(c)-(d) (1997). Return to text.

[34] See FLA. S. COMM. ON BANKING & INS., ESTABLISHING GEOGRAPHICAL BOUNDARIES FOR THE FLORIDA WINDSTORM UNDERWRITING ASSOCIATION 2 (1997) (on file with comm.) [hereinafter GEOGRAPHICAL BOUNDARIES]. Return to text.

[35] See id. at 15-17. Return to text.

[36] See FLA. STAT. 627.351 (1997). Return to text.

[37] See KENNETH S. ABRAHAM, INSURANCE LAW & REGULATION 2 (2d ed. 1995). Return to text.

[38] See FLA. STAT. 627.351(2),(6) (1997). Return to text.

[39] See id. 627.3511(1). Return to text.

[40] See Staff Analysis, supra note 32, at 3. Return to text.

[41] See Interview with Vince Rio, Counsel, State Farm Mutual Co., in Tallahassee, Fla. (Nov. 3, 1997) [hereinafter Rio Interview]. Return to text.

[42] See id. Return to text.

[43] See Staff Analysis, supra note 32, at 2. That is, in spite of the large rate increases, property insurance is not widely available in high risk areas today because insurers still believe they need to reduce their exposure in hurricane prone areas. Return to text.

[44] See FLA. STAT. 215.555 (1) (1997). Return to text.

[45] See id. Return to text.

[46] See Act effective May 21, 1996, ch. 96-194, 9, 1996 Fla. Laws 602, 602. Return to text.

[47] See FLA. STAT. 215.555 (1) (1997). Return to text.

[48] See FINAL REPORT, supra note 2. Return to text.

[49] See FLA. STAT. 627.351 (1997). Return to text.

[50] See Act effective May 9, 1997, ch. 97-55, 1997 Fla. Laws 322 (amending FLA. STAT. 627.351 (Supp. 1996)). Return to text.

[51] See id. at 339 (amending FLA. STAT. 627.351(6)(c)(3) (Supp. 1996)). Return to text.

[52] See id. at 328 (amending FLA. STAT. 627.351(2)(b)(2)(a) (Supp. 1996), codified at FLA. STAT. 627.351(2)(b)(2)(a)(VI) (1997)). Return to text.

[53] See FLA. STAT. 627.351(2)(b)(6)(a) (1997). Return to text.

[54] See id. 627.351(6)(b)(3)(c), (6)(c)(3). Return to text.

[55] See id. 627.351(6)(c)(3). The Florida Hurricane Catastrophe Fund was created by the Florida Legislature during the November 1993 special session. The Catastrophe Fund is a trust fund under the control of the State Board of Administration. Each property insurer pays premiums to the fund, based proportionately on the insurer's hurricane exposure. In exchange for these premiums, the Fund promises to pay a certain percentage of the insurer's hurricane losses. The main purpose of the Catastrophe Fund is to permit the tax-free accumulation of hurricane reserves. See generally id. 215.555. Return to text.

[56] See id. 627.3513. Return to text.

[57] See id. 627.3513(2). Return to text.

[58] See id. 627.3513(3) (including expected expenses and fees incurred by participating in the program). Return to text.

[59] See id. 627.3513(4). Return to text.

[60] See id. 627.351(6)(c)(10). Return to text.

[61] See id. 627.701(8). Return to text.

[62] See supra text accompanying note 31. Return to text.

[63] See FLA. STAT. 627.3512(1) (1997). Return to text.

[64] See id. 627.3512(2). Return to text.

[65] See id. Return to text.

[66] See Florida DOI, HIGHLIGHTS OF THE HOMEOWNERS RATE RELIEF ACT 1 (1997) (on file with the Fla. DOI) [hereinafter HIGHLIGHTS]. Return to text.

[67] See FLA. STAT. 627.351 (2)(b)(2)(d), (6)(b)(3). Return to text.

[68] See id. 627.3511(2). Return to text.

[69] See id. 627.351(2)(b)(2)(d). Return to text.

[70] See id. 627.351(2)(b)(2)(d)(I) (Supp. 1996). Return to text.

[71] See id. 627.351(2)(b)(2)(d)(II). Return to text.

[72] See id. 627.351(2)(b)(2)(d) (1997). Return to text.

[73] See id. 627.351(2)(b)(2)(d)(III). Return to text.

[74] See id. 627.351(6)(b)(3)(d) (Supp. 1996) ("Upon a determination by the board of governors that a deficit in an account exceeds the amount that will be recovered through regular assessments of insurers . . . , the board shall levy, after verification by the department, emergency assessments to be collected by insurers, including joint underwriting associations, upon issuance or renewal of policies in the year or years following levy of the regular assessments."). Return to text.

[75] See Rio Interview, supra note 41. Return to text.

[76] See FLA. STAT. 627.351(2)(b)(5)(d) (1997). Return to text.

[77] See id. 627.351(2)(b)(5)(e). Return to text.

[78] See id. 627.351(2)(b)(5)(b):

It is the intent of the Legislature that the rates for coverage provided by the association be actuarially sound and not competitive with the approved rates charged in the admitted voluntary market such that the association functions as a residual market mechanism to provide insurance only when the insurance cannot be procured in the voluntary market. The plan of operation shall provide a mechanism to assure that, beginning no later than January 1, 1999, the rates charged by the association . . . are reflective of the approved rates in the voluntary market for hurricane coverage . . . in the various areas eligible for association coverage. Id. Return to text.

[79] See id. 627.062 (Supp. 1996). Return to text.

[80] See id. 627.351(6)(d)(2). Return to text.

[81] See id. 627.351(2)(b)(5)(b) (1997). Return to text.

[82] See id. 627.351(2)(e) (to be repealed on October 1, 1998). Return to text.

[83] See GEOGRAPHICAL BOUNDARIES, supra note 34, at 1. Return to text.

[84] See FLA. STAT. 627.351(2)(c)(2) (1997). Return to text.

[85] See Staff Analysis, supra note 32, at 10. Return to text.

[86] See FLA. STAT. 627.351(2)(b)(2)(a)(VI) (1997). Return to text.

[87] See id. Return to text.

[88] See id. Return to text.

[89] See id. Return to text.

[90] See id. 627.351(6)(g)(3)(c); see also id. 627.3511(3)(b)-(c). Return to text.

[91] See supra text accompanying note 31. Return to text.

[92] See FLA. STAT. 627.351(2)(b) (1997). Return to text.

[93] See id. 627.351(6)(g)(3)(b). Return to text.

[94] See id. 627.351(2)(b)(2)(d)(III). Return to text.

[95] See id. 627.351(2)(b)(9)(e). Return to text.

[96] See id. Return to text.

[97] See id. 627.351(2)(b)(6)(b). Return to text.

[98] Id. 627.351(2)(b)(2)(e). Return to text.

[99] See id. 627.351(2)(b)(6)(a). Return to text.

[100] See id. 627.351(2)(b)(6)(b). Return to text.

[101] See What's Covered?, ST. PETE. TIMES, Sept. 24, 1997, at A12. Return to text.

[102] See id. Return to text.

[103] See HIGHLIGHTS, supra note 66, at 1. Return to text.

[104] See id. Return to text.

[105] See FLA. STAT. 215.555 (1997). Return to text.

[106] See id. 627.351(2)(e). Return to text.

[107] See id. 627.3512. Return to text.