Res. No. 177-06-12318RESOLUTION NO.177-06-12318
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF SOUTH MIAMI,FLORIDA,RELATING TO THE
FLORIDA LEGISLATURE,REQUESTING THE LEGISLATURE TO
IMMEDIATELY CONVENE A SPECIAL SESSION TO ADDRESS
THE CRISIS IN FLORIDA'S WINDSTORM INSURANCE MARKET;
PROVIDING AN EFFECTIVE DATE.
WHEREAS,theState of Florida has always confronted the challenges and
dangers posed by tropical storms and hurricanes;and
WHEREAS,itis critical that Floridians have both affordable and available
insurance forthe perils associated with windstorm damage;and
WHEREAS,tothisdaythereare homes in various parts of Florida which still
havebluetarpsontheirroofsfromthe2004and2005hurricanesasinsurancecompanies
arerefusingtosettle claims oraretooslowin processing them;and
WHEREAS,thestateorganizedCitizens Property Insurance Corporation
(Citizens),whichwascreatedtobeastate"insurer of lastresort,"isnowthelargest
windstorminsurance provider intheState of Florida,issuingmorethan1 million Florida
homeowner policies;and
WHEREAS,Citizenshasproventobe fundamentally flawed,asitforcesthestate
tosubsidizetherisk of hurricane damagefor Florida's highest-risk properties,while
allowinginsurancecompaniestocontinuallyreaprecordprofitsattheexpense of Florida
taxpayers;and
WHEREAS,duringthe2006LegislativeSession,theLegislaturerefusedtoeven
considercrediblealternativesthatmighthavestabilizedthe state's windstorminsurance
market,insteadonlyconsideringproposalsthatwereapprovedbytheinsuranceindustry
itself;and
WHEREAS,theLegislaturespecificallyignoredHB1209,whichcalledforthe
statetodeliveramore affordable layer of insuranceforall Floridians,an approach that
independentexpertsbelievedwouldstabilizetheinsurancemarketandprovidemuch-
needed rate relief;and
WHEREAS,the Legislature,with virtually no input ordebate,waited untilthe
lateevening of thelastday of a60-daysessiontopassSB1980(witha77-39voteinthe
House and 22-16 vote in the Senate);and
WHEREAS,SB1980onlymadeit easier for private insurance companies to
increase premiums without adequate oversight and removed important consumer
protections;and
Additions shown by underlining and deletions shown by ovorstriking.
Res.No.177-06-12318
WHEREAS,sincethe2006LegislativeSession,significantnumbers of private
insurance companiesaredroppinghomeowners'policies,becomingfinanciallyinsolvent,
orarecontinuingtodoubleandtriple premiums insomeareas of thestate;and
WHEREAS,eachday more Floridians,including fixed income senior citizens of
ourstate,areunabletoaffordtheseobscenerateincreasesthatare becoming
commonplace andcasing some togiveuptheir homes and condominiums,or make
choices effecting the very necessities that effect thequality of theirlives;and
WHEREAS,commercial properties including small businesses,andcritical
elements of our state's and city's economic infrastructure are likewise feeling the
devastating impact of unavailable or unaffordable windstorm insurance;and
WHEREAS,since May 2006politicalleaders have been calling upon the
Governor andthe presiding officers of theLegislatureto convene aspecial session to
addressthishurricane insurance crisisina meaningful way;and
WHEREAS,the solution tothehurricane insurance crisis will require legislative
changes toFlorida Statutes;and
WHEREAS,the Governor of theState of Floridahasthe authority tocalla
specialsession of theLegislatureunderArticleIII,Section3(c)(1)of theFlorida
Constitution,andhas used thisauthorityto convene specialsessionsduringhis
administration forthepurposes of amending Florida lawsontortreformandtointervene
with theend of life decisions of Terry Schiavo;and
WHEREAS,theSpeaker of theFloridaHouse of Representatives andthe
President of theFloridaSenatehavetheauthorityto convene aspecial session of the
Legislature under Chapter 11.011(1),Florida Statutes,pursuant toArticleIII,Section
3(c)(2)of theFlorida Constitution.
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF SOUTH MIAMI,FLORIDA;
Section 1.That the Governor of theState of Floridaand the leadership of the
Florida Legislatureareurgedto immediately conveneaspecialsessiontoaddressthe
crisisinFlorida'shurricaneinsurancemarket.The Legislature's solution should
incorporatethe following guidelines:
(1)Considerationshouldbegiventoproposalsthatwillleadtothedepopulation
of Citizens.
(2)Allowing privateinsurancecompaniesmorefreedomtoraiseratesisnota
suitable solution for Florida's homeowners.
(3)As a substantive reform of theinsurance market is needed,waiting onthe
federal government tocreateanationalcatastrophefundorcreatinghurricane-
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Res.No.177-06-1231
related tax-free savingsaccounts is insufficient to solve the current crisis in
the hurricane insurance market.
(4)The Florida Legislature should notbe limited to only private market solutions
which will continue the current status-quo of runaway premium hikesandtax
assessments of Floridians.
(5)Due consideration should be given to proposals which restructure or expand
the Florida CAT fund,or create a larger reinsurance pool for insurance
companies ora more affordable layer of statewide windstorm insurance.
Section 2.TheCity Clerk shallsend copies of this resolution tothe Governor
of the State of Florida,to the President of the Florida Senate,tothe Speaker of the
Florida House,andto each member of the Miami-Dade delegation inthe Florida
Legislature.
Section 2.This resolution shall take effect immediately upon approval.
PASSED AND ADOPTED this °)day of (Z^rSt^Myi 2006.
ATTEST:APPROVED:,
CITYCLERK V XlATOR
READ AND APPROVED AS TO FORM:
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Commissioi
Mayor FeliuT
Vice Mayor Wiscombe:
Commissioner Birts:
Commissioner Palmer:
Commissioner Beckman:
4-1
Yea
Yea
Yea
Yea
Nay