Resolution 304-2006
RESOLUTION NO. 304 -2006
A RESOLUTION OF THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY STRONGLY
ENCOURAGING THE FLORIDA LEGISLATURE TO STUDY
AND ENACT LEGISLATION ADDRESSING THE
INSURANCE CRISIS IN FLORIDA.
WH:EREAS, the rates of premiums for insurance, particularly windstorm have escalated
dramatically in the last year throughout the State of Florida; and
WHEREAS, the windstorm rate is considerably higher in Monroe County than any
factual actuarial basis would support; and
WHEREAS, the windstorm rate is considerably higher in Monroe County than in any
other area of the State despite the statistical evidence of more and worse windstorm impacts
elsewhere; and
WHl<:REAS, within the last three months, Monroe County hired an actuary, a lobbyist
and an attomey with special expertise in insurance regulation to fight the recent filings of
Citizen's Property Insurance Corporation and Florida Peninsula Insurance Company, and to file
pleadings and evidence with the Office of Insurance Regulation in a legal challenge to the rate
filings in an effort to preserve Monroe County's workforce and the quality of life of all of its
residents and visitors; and
WHl!:REAS, Monroe County already is deemed to have the highest cost of living in the
State of Florida; and
WHI:REAS, the exorbitant cost of insuring a home will eventually drive away the
service providers, including not only those employees in the tourist industry, but the police,
teachers and other personnel essential to the viability oflife in Monroe County; and
WHE,REAS, the physical composition of Monroe County, the inhabited portion being
primarily a 120 mile chain of islands without ability of any but the northemmost islands to be
provided a workforce from the mainland on a regular basis; and
WHEREAS, in a public hearing before the Office ofInsurance Regulation on August I,
2006, Citizen's Property Insurance Corporation was unable to substantiate or to support their
recent rate filing and at which they were unable to demonstrate that the rate filing was actuarially
sound.
NOW THEREFORE, BE IT RESOLVED by the Board of County Commissioners of
Monroe County, that:
I. It is clritical to the citizens of Florida, and particularly the residents and businesses of
Monroe County that the Florida Legislature to study and enact legislation to abate the
insurance crisis in Florida; and if a special session of the legislature is called that the
issue of insurance must be included and take precedence.
2. It is critical that the Legislature require Citizens Property Insurance Company and all
other insurance companies selling insurance in the State of Florida to use the Public
Hunicane Loss Projection Model which was paid for by the citizens of the State with
tax dollars and which is a transparent model.
3. It is ,critical that the Legislature insure that any model used in support of a rate filing
by any insurance company in the State of Florida be transparent and not proprietary to
insure that the citizens and their elected officials are able to analyze and confirm the
accuracy of the assumptions incorporated into the model.
4. It is critical that the Legislature repeal the legislation which allows insurance
companies to charge Florida citizens a new rate before the rate can be challenged or
reviewed by the OIR.
5. The Clerk is directed to mail or fax a copy of this resolution to the following:
Honorable Jeb Bush, the Honorable Charlie Crist, the Honorable Tom Gallagher, the
Honorable Charles H. Bronson, State Senators Larcenia Bullard and Rudy Garcia, and
State Representatives Ken Sorensen and Dennis Ross, and to William Pfeiffer and Robert
Reyes, lobbyists for Monroe County.
5. This Resolution shall become effective upon the date of its adoption herein.
PASSED AND ADOPTED by the Board of County Commissioners of Monroe County,
Florida, at a meeting of said Board held on the 16th day of August, 2006.
Mayor McCoy
Mayor Pro Tern Spehar
Commissioner Neugent
Comraissioner Patton
Commissioner District, IV
Yes
Yfl!R
Yes
Yes
Vacant
(Seal)
Attest: DAN~lerk
BYCJ:-..
Deputy Clerk
BOARD OF COUN
OF MONROE CO
COMMISSIONERS
Y, FLORIDA
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CHIEF FINANCIAL OFFICER
STATE OF FLORIDA
ALEX SINK
January 29 2007
Mr. Danny L. Kolhage
Clerk of the Circuit Court
Monroe County Courthouse
500 Whitehead Street, Suite 101
Key West, FL 33040
Dear Mr. KCllhage:
Thank you for bringing to my attention your concerns relative to the current
insurance crisis that is facing the state of Florida. I have received the certified copy
of Resoluticln No. 304-2006 and will consider your suggestions when reviewing
legislation addressing the insurance crisis in Florida.
As you know, Governor Crist called a Special Legislative Session to deal with the
issue of insurance coverage for homeowners in Florida. As Florida's Chief Financial
Officer, I am also concerned about the impact of the high insurance rates on people
and the overall economy of our state. At the same time, we must guard the long-
term fiscal health of our state. I want to make certain that we are making decisions
that are in the best interests of tax payers in the future, as well as immediately.
I am also eclger to work with the Legislature and Governor Crist during the upcoming
regular ses8ion with an eye toward a healthy and stable insurance market. I
appreciate hearing from you and hope this information is helpful to you and
members of the Monroe County Board of County Commissioners.
Sincerely,
~~
Alex Sink
DEPARTMENT OF FINANCIAL SERVICES
THE CAPITOL, TALLAHASSEE, FLORIDA 32399-0301' (850) 413-2850' FAX (850) 413-2950