CS/CS/HB 1495

1	A bill to be entitled
2	An act relating to property and casualty insurance;
3	amending s. 215.47, F.S.; authorizing the State Board of
4	Administration to invest in certain revenue bonds under
5	certain circumstances; amending s. 215.555, F.S., relating
6	to the Florida Hurricane Catastrophe Fund; revising the
7	dates of an insurer's contract year for purposes of
8	calculating the insurer's retention; revising
9	reimbursement contract coverage payment provisions;
10	extending application of provisions relating to
11	reimbursement contracts; revising the dates on which the
12	State Board of Administration is required to publish a
13	statement of the estimated borrowing capacity of the
14	Florida Hurricane Catastrophe Fund; requiring a
15	reimbursement premium formula to provide cash build-up
16	factors for certain contract years; extending provisions
17	relating to temporary increase in coverage limit
18	operations for the fund; providing additional
19	reimbursement requirements for temporary increase in
20	coverage addenda for additional contract years; expanding
21	the powers and duties of the board; specifying required
22	increases in TICL reimbursement premiums for certain
23	contract years; specifying nonapplication of cash build-up
24	factors to TICL reimbursement premiums; deleting authority
25	for the State Board of Administration to increase the
26	claims-paying capacity of the fund; amending s. 215.5586,
27	F.S., relating to the My Safe Florida Home Program;
28	revising legislative intent; revising criteria for
29	hurricane mitigation inspections; revising criteria for
30	eligibility for a mitigation grant; expanding the list of
31	improvements for which grants may be used; deleting
32	provisions relating to no-interest loans; requiring that
33	contracts valued at or greater than a specified amount be
34	subject to review and approval by the Legislative Budget
35	Commission; requiring the Department of Financial Services
36	to implement a condominium mitigation loan program for
37	certain purposes; specifying program requirements;
38	specifying an administration requirement for the program;
39	requiring the department to adopt rules; amending s.
40	624.4622, F.S.; prohibiting withdrawal notice requirements
41	of longer than 30 days for members of a local government
42	self-insurance fund; requiring local government self-
43	insurance funds to submit an affidavit to specified
44	entities; specifying affidavit contents; amending s.
45	624.605, F.S.; revising the definition of the term
46	"casualty insurance" to include certain debt cancellation
47	products sold by certain business entities; amending s.
48	627.062, F.S.; extending application of file and use
49	filing requirements for certain property insurance
50	filings; prohibiting the Office of Insurance Regulation
51	from interfering with an insurer's right to solicit, sell,
52	promote, or otherwise acquire policyholders and implement
53	coverage; specifying limited application to certain rates;
54	specifying that certain rate filings are not subject to
55	office determination as excessive or unfairly
56	discriminatory; providing limitations; providing a
57	definition; prohibiting certain rate filings under certain
58	circumstances; preserving the office's authority to
59	disapprove certain rate filings under certain
60	circumstances; providing procedures for insurers
61	submitting certain rate filings; specifying nonapplication
62	to certain types of insurance; amending s. 627.0621, F.S.;
63	deleting a limitation on the application of the attorney-
64	client privilege and work product doctrine in challenges
65	to actions by the office relating to rate filings;
66	amending s. 627.0628, F.S.; requiring the Florida
67	Commission on Hurricane Loss Projection Methodology to
68	hold public meetings for purposes of implementing certain
69	windstorm mitigation discounts, credits, other rate
70	differentials, and deductible reductions; requiring a
71	report to the Governor, Cabinet, and Legislature; amending
72	s. 627.0629, F.S.; requiring certain hurricane mitigation
73	measure discounts, credits, and rate differentials to
74	supersede certain other discounts, credits, and rate
75	differentials; authorizing residential property insurers
76	to include reinsurance costs without certain TICL
77	adjustments; amending s. 627.0655, F.S.; discontinuing
78	authorization for a premium discount for a policyholder
79	having multiple policies from Citizens Property Insurance
80	Corporation or a policy that has been removed from the
81	corporation by another insurer; amending s. 627.351, F.S.;
82	deleting application of certain personal lines residential
83	property insurance requirements for wind-borne debris
84	regions insured by the corporation; revising the basis of
85	a surcharge to offset an account deficit; providing for
86	members of the board of governors of the corporation to
87	serve staggered terms; providing exceptions to actuarially
88	sound rate requirements for the corporation; providing
89	legislative findings; requiring the corporation to
90	implement certain actuarially sound rates for certain
91	lines of business; providing limitations; providing for
92	cessation of certain rate increases upon implementation of
93	actuarially sound rates; requiring the corporation to
94	transfer certain funds from the rate increase to the
95	General Revenue Fund for a certain time; deleting certain
96	wind-only coverage maximum loss reporting requirements;
97	amending s. 627.711, F.S.; revising eligible entities
98	authorized to certify uniform mitigation inspection forms;
99	authorizing insurers to contract with inspection firms to
100	review certain verification forms and reinspect properties
101	for certain purposes; providing for such contracts to be
102	at the insurer's expense; providing a criminal penalty for
103	knowingly submitting a false or fraudulent mitigation form
104	with the intent to receive an undeserved discount;
105	amending s. 627.712, F.S.; providing an additional
106	exception to residential property insurance windstorm
107	coverage requirements for certain risks; expanding a
108	requirement that insurers notify mortgageholders or
109	lienholders of policyholder elections for coverage not
110	covering wind; amending s. 631.65, F.S.; providing
111	construction relating to certain prohibited advertisements
112	or solicitations; providing for appropriation of certain
113	transferred funds to the Insurance Regulatory Trust Fund
114	for certain purposes; requiring the My Safe Florida Home
115	Program to use certain funds for certain mitigation
116	grants; authorizing the department to establish a separate
117	account in the trust fund for accounting purposes;
118	providing an effective date.
119
120	Be It Enacted by the Legislature of the State of Florida:
121
122	Section 1.  Subsection (20) is added to section 215.47,
123	Florida Statutes, to read:
124	215.47  Investments; authorized securities; loan of
125	securities.--Subject to the limitations and conditions of the
126	State Constitution or of the trust agreement relating to a trust
127	fund, moneys available for investments under ss. 215.44-215.53
128	may be invested as follows:
129	(20)  The State Board of Administration may, consistent
130	with sound investment policy, invest in revenue bonds issued
131	pursuant to s. 215.555(6).
132	Section 2.  Paragraph (e) of subsection (2), paragraphs (b)
133	and (c) of subsection (4), paragraph (b) of subsection (5), and
134	subsection (17) of section 215.555, Florida Statutes, are
135	amended, and paragraph (f) is added to subsection (7) of that
136	section, to read:
137	215.555  Florida Hurricane Catastrophe Fund.--
138	(2)  DEFINITIONS.--As used in this section:
139	(e)  "Retention" means the amount of losses below which an
140	insurer is not entitled to reimbursement from the fund. An
141	insurer's retention shall be calculated as follows:
142	1.  The board shall calculate and report to each insurer
143	the retention multiples for that year. For the contract year
144	beginning June 1, 2005, the retention multiple shall be equal to
145	$4.5 billion divided by the total estimated reimbursement
146	premium for the contract year; for subsequent years, the
147	retention multiple shall be equal to $4.5 billion, adjusted
148	based upon the reported exposure from the prior contract year to
149	reflect the percentage growth in exposure to the fund for
150	covered policies since 2004, divided by the total estimated
151	reimbursement premium for the contract year. Total reimbursement
152	premium for purposes of the calculation under this subparagraph
153	shall be estimated using the assumption that all insurers have
154	selected the 90-percent coverage level. In 2010, the contract
155	year begins June 1 and ends December 31. In 2011 and thereafter,
156	the contract year begins January 1 and ends December 31.
157	2.  The retention multiple as determined under subparagraph
158	1. shall be adjusted to reflect the coverage level elected by
159	the insurer. For insurers electing the 90-percent coverage
160	level, the adjusted retention multiple is 100 percent of the
161	amount determined under subparagraph 1. For insurers electing
162	the 75-percent coverage level, the retention multiple is 120
163	percent of the amount determined under subparagraph 1. For
164	insurers electing the 45-percent coverage level, the adjusted
165	retention multiple is 200 percent of the amount determined under
166	subparagraph 1.
167	3.  An insurer shall determine its provisional retention by
168	multiplying its provisional reimbursement premium by the
169	applicable adjusted retention multiple and shall determine its
170	actual retention by multiplying its actual reimbursement premium
171	by the applicable adjusted retention multiple.
172	4.  For insurers who experience multiple covered events
173	causing loss during the contract year, beginning June 1, 2005,
174	each insurer's full retention shall be applied to each of the
175	covered events causing the two largest losses for that insurer.
176	For each other covered event resulting in losses, the insurer's
177	retention shall be reduced to one-third of the full retention.
178	The reimbursement contract shall provide for the reimbursement
179	of losses for each covered event based on the full retention
180	with adjustments made to reflect the reduced retentions after
181	January 1 of the contract year provided the insurer reports its
182	losses as specified in the reimbursement contract.
183	(4)  REIMBURSEMENT CONTRACTS.--
184	(b)1.  The contract shall contain a promise by the board to
185	reimburse the insurer for 45 percent, 75 percent, or 90 percent
186	of its losses from each covered event in excess of the insurer's
187	retention, plus 5 percent of the reimbursed losses to cover loss
188	adjustment expenses.
189	2.  The insurer must elect one of the percentage coverage
190	levels specified in this paragraph and may, upon renewal of a
191	reimbursement contract, elect a lower percentage coverage level
192	if no revenue bonds issued under subsection (6) after a covered
193	event are outstanding, or elect a higher percentage coverage
194	level, regardless of whether or not revenue bonds are
195	outstanding. All members of an insurer group must elect the same
196	percentage coverage level. Any joint underwriting association,
197	risk apportionment plan, or other entity created under s.
198	627.351 must elect the 90-percent coverage level.
199	3.  The contract shall provide that reimbursement amounts
200	shall not be reduced by reinsurance paid or payable to the
201	insurer from other sources.
202	4.  Notwithstanding any other provision contained in this
203	section, the board shall make available to insurers that
204	purchased coverage provided by this subparagraph in 2008 2007,
205	insurers qualifying as limited apportionment companies under s.
206	627.351(6)(c), and insurers that have been approved to
207	participate in the Insurance Capital Build-Up Incentive Program
208	pursuant to s. 215.5595 a contract or contract addendum that
209	provides an additional amount of reimbursement coverage of up to
210	$10 million. The premium to be charged for this additional
211	reimbursement coverage shall be 50 percent of the additional
212	reimbursement coverage provided, which shall include one prepaid
213	reinstatement. The minimum retention level that an eligible
214	participating insurer must retain associated with this
215	additional coverage layer is 30 percent of the insurer's surplus
216	as of December 31, 2008 2007. This coverage shall be in addition
217	to all other coverage that may be provided under this section.
218	The coverage provided by the fund under this subparagraph shall
219	be in addition to the claims-paying capacity as defined in
220	subparagraph (c)1., but only with respect to those insurers that
221	select the additional coverage option and meet the requirements
222	of this subparagraph. The claims-paying capacity with respect to
223	all other participating insurers and limited apportionment
224	companies that do not select the additional coverage option
225	shall be limited to their reimbursement premium's proportionate
226	share of the actual claims-paying capacity otherwise defined in
227	subparagraph (c)1. and as provided for under the terms of the
228	reimbursement contract. The optional coverage retention as
229	specified shall be accessed before the mandatory coverage under
230	the reimbursement contract, but once the limit of coverage
231	selected under this option is exhausted, the insurer's retention
232	under the mandatory coverage shall apply. This coverage shall
233	apply and be paid concurrently with the mandatory coverage.
234	Coverage provided in the reimbursement contract shall not be
235	affected by the additional premiums paid by participating
236	insurers exercising the additional coverage option allowed in
237	this subparagraph. This subparagraph expires on December May 31,
238	2011 2009.
239	(c)1.  The contract shall also provide that the obligation
240	of the board with respect to all contracts covering a particular
241	contract year shall not exceed the actual claims-paying capacity
242	of the fund up to a limit of $15 billion for that contract year
243	adjusted based upon the reported exposure from the prior
244	contract year to reflect the percentage growth in exposure to
245	the fund for covered policies since 2003, provided the dollar
246	growth in the limit may not increase in any year by an amount
247	greater than the dollar growth of the balance of the fund as of
248	December 31, less any premiums or interest attributable to
249	optional coverage, as defined by rule which occurred over the
250	prior calendar year.
251	2.  In May before the start of the upcoming contract year
252	and in October of during the contract year, the board shall
253	publish in the Florida Administrative Weekly a statement of the
254	fund's estimated borrowing capacity and the projected balance of
255	the fund as of December 31. After the end of each calendar year,
256	the board shall notify insurers of the estimated borrowing
257	capacity and the balance of the fund as of December 31 to
258	provide insurers with data necessary to assist them in
259	determining their retention and projected payout from the fund
260	for loss reimbursement purposes. In conjunction with the
261	development of the premium formula, as provided for in
262	subsection (5), the board shall publish factors or multiples
263	that assist insurers in determining their retention and
264	projected payout for the next contract year. For all regulatory
265	and reinsurance purposes, an insurer may calculate its projected
266	payout from the fund as its share of the total fund premium for
267	the current contract year multiplied by the sum of the projected
268	balance of the fund as of December 31 and the estimated
269	borrowing capacity for that contract year as reported under this
270	subparagraph.
271	(5)  REIMBURSEMENT PREMIUMS.--
272	(b)  The State Board of Administration shall select an
273	independent consultant to develop a formula for determining the
274	actuarially indicated premium to be paid to the fund. The
275	formula shall specify, for each zip code or other limited
276	geographical area, the amount of premium to be paid by an
277	insurer for each $1,000 of insured value under covered policies
278	in that zip code or other area. In establishing premiums, the
279	board shall consider the coverage elected under paragraph (4)(b)
280	and any factors that tend to enhance the actuarial
281	sophistication of ratemaking for the fund, including
282	deductibles, type of construction, type of coverage provided,
283	relative concentration of risks, and other such factors deemed
284	by the board to be appropriate. The formula must provide for a
285	cash build-up factor. For the contract year 2009-2010, the
286	factor is 5 percent; for the contract year beginning June 1,
287	2010, and ending December 31, 2010, the factor is 10 percent;
288	for the 2011 contract year, the factor is 15 percent; for the
289	2012 contract year, the factor is 20 percent; and for the 2013
290	contract year and thereafter, the factor is 25 percent. The
291	formula may provide for a procedure to determine the premiums to
292	be paid by new insurers that begin writing covered policies
293	after the beginning of a contract year, taking into
294	consideration when the insurer starts writing covered policies,
295	the potential exposure of the insurer, the potential exposure of
296	the fund, the administrative costs to the insurer and to the
297	fund, and any other factors deemed appropriate by the board. The
298	formula must be approved by unanimous vote of the board. The
299	board may, at any time, revise the formula pursuant to the
300	procedure provided in this paragraph.
301	(7)  ADDITIONAL POWERS AND DUTIES.--
302	(f)  The board may require insurers to notarize documents
303	submitted to the board.
304	(17)  TEMPORARY INCREASE IN COVERAGE LIMIT OPTIONS.--
305	(a)  Findings and intent.--
306	1.  The Legislature finds that:
307	a.  Because of temporary disruptions in the market for
308	catastrophic reinsurance, many property insurers were unable to
309	procure sufficient amounts of reinsurance for the 2006 hurricane
310	season or were able to procure such reinsurance only by
311	incurring substantially higher costs than in prior years.
312	b.  The reinsurance market problems were responsible, at
313	least in part, for substantial premium increases to many
314	consumers and increases in the number of policies issued by
315	Citizens Property Insurance Corporation.
316	c.  It is likely that the reinsurance market disruptions
317	will not significantly abate prior to the 2007 hurricane season.
318	2.  It is the intent of the Legislature to create options
319	for insurers to purchase a temporary increased coverage limit
320	above the statutorily determined limit in subparagraph (4)(c)1.,
321	applicable for the 2007, 2008, and 2009, 2010, 2011, 2012, and
322	2013 hurricane seasons, to address market disruptions and enable
323	insurers, at their option, to procure additional coverage from
324	the Florida Hurricane Catastrophe Fund.
325	(b)  Applicability of other provisions of this
326	section.--All provisions of this section and the rules adopted
327	under this section apply to the coverage created by this
328	subsection unless specifically superseded by provisions in this
329	subsection.
330	(c)  Optional coverage.--For the contract year commencing
331	June 1, 2007, and ending May 31, 2008, the contract year
332	commencing June 1, 2008, and ending May 31, 2009, and the
333	contract year commencing June 1, 2009, and ending May 31, 2010,
334	the contract year commencing June 1, 2010, and ending December
335	31, 2010, the contract year commencing January 1, 2011, and
336	ending December 31, 2011, the contract year commencing January
337	1, 2012, and ending December 31, 2012, and the contract year
338	commencing January 1, 2013, and ending December 31, 2013, the
339	board shall offer, for each of such years, the optional coverage
340	as provided in this subsection.
341	(d)  Additional definitions.--As used in this subsection,
342	the term:
343	1.  "FHCF" means Florida Hurricane Catastrophe Fund.
344	2.  "FHCF reimbursement premium" means the premium paid by
345	an insurer for its coverage as a mandatory participant in the
346	FHCF, but does not include additional premiums for optional
347	coverages.
348	3.  "Payout multiple" means the number or multiple created
349	by dividing the statutorily defined claims-paying capacity as
350	determined in subparagraph (4)(c)1. by the aggregate
351	reimbursement premiums paid by all insurers estimated or
352	projected as of calendar year-end.
353	4.  "TICL" means the temporary increase in coverage limit.
354	5.  "TICL options" means the temporary increase in coverage
355	options created under this subsection.
356	6.  "TICL insurer" means an insurer that has opted to
357	obtain coverage under the TICL options addendum in addition to
358	the coverage provided to the insurer under its FHCF
359	reimbursement contract, but does not include Citizens Property
360	Insurance Corporation.
361	7.  "TICL reimbursement premium" means the premium charged
362	by the fund for coverage provided under the TICL option.
363	8.  "TICL coverage multiple" means the coverage multiple
364	when multiplied by an insurer's reimbursement premium that
365	defines the temporary increase in coverage limit.
366	9.  "TICL coverage" means the coverage for an insurer's
367	losses above the insurer's statutorily determined claims-paying
368	capacity based on the claims-paying limit in subparagraph
369	(4)(c)1., which an insurer selects as its temporary increase in
370	coverage from the fund under the TICL options selected. A TICL
371	insurer's increased coverage limit options shall be calculated
372	as follows:
373	a.  The board shall calculate and report to each TICL
374	insurer the TICL coverage multiples based on 12 options for
375	increasing the insurer's FHCF coverage limit. Each TICL coverage
376	multiple shall be calculated by dividing $1 billion, $2 billion,
377	$3 billion, $4 billion, $5 billion, $6 billion, $7 billion, $8
378	billion, $9 billion, $10 billion, $11 billion, or $12 billion by
379	the total estimated aggregate FHCF reimbursement premiums for
380	the 2007-2008 contract year and, the 2008-2009 contract year,
381	and the 2009-2010 contract year.
382	b.  For the 2009-2010 contract year, the board shall
383	calculate and report to each TICL insurer the TICL coverage
384	multiples based on 10 options for increasing the insurer's FHCF
385	coverage limit. Each TICL coverage multiple shall be calculated
386	by dividing $1 billion, $2 billion, $3 billion, $4 billion, $5
387	billion, $6 billion, $7 billion, $8 billion, $9 billion, and $10
388	billion by the total estimated aggregate FHCF reimbursement
389	premiums for the 2009-2010 contract year.
390	c.  For the contract year beginning June 1, 2010, and
391	ending December 31, 2010, the board shall calculate and report
392	to each TICL insurer the TICL coverage multiples based on eight
393	options for increasing the insurer's FHCF coverage limit. Each
394	TICL coverage multiple shall be calculated by dividing $1
395	billion, $2 billion, $3 billion, $4 billion, $5 billion, $6
396	billion, $7 billion, and $8 billion by the total estimated
397	aggregate FHCF reimbursement premiums for the contract year.
398	d.  For the 2011 contract year, the board shall calculate
399	and report to each TICL insurer the TICL coverage multiples
400	based on six options for increasing the insurer's FHCF coverage
401	limit. Each TICL coverage multiple shall be calculated by
402	dividing $1 billion, $2 billion, $3 billion, $4 billion, $5
403	billion, and $6 billion by the total estimated aggregate FHCF
404	reimbursement premiums for the 2011 contract year.
405	e.  For the 2012 contract year, the board shall calculate
406	and report to each TICL insurer the TICL coverage multiples
407	based on four options for increasing the insurer's FHCF coverage
408	limit. Each TICL coverage multiple shall be calculated by
409	dividing $1 billion, $2 billion, $3 billion, and $4 billion by
410	the total estimated aggregate FHCF reimbursement premiums for
411	the 2012 contract year.
412	f.  For the 2013 contract year, the board shall calculate
413	and report to each TICL insurer the TICL coverage multiples
414	based on two options for increasing the insurer's FHCF coverage
415	limit. Each TICL coverage multiple shall be calculated by
416	dividing $1 billion and $2 billion by the total estimated
417	aggregate FHCF reimbursement premiums for the 2013 contract
418	year.
419	g.b.  The TICL insurer's increased coverage shall be the
420	FHCF reimbursement premium multiplied by the TICL coverage
421	multiple. In order to determine an insurer's total limit of
422	coverage, an insurer shall add its TICL coverage multiple to its
423	payout multiple. The total shall represent a number that, when
424	multiplied by an insurer's FHCF reimbursement premium for a
425	given reimbursement contract year, defines an insurer's total
426	limit of FHCF reimbursement coverage for that reimbursement
427	contract year.
428	10.  "TICL options addendum" means an addendum to the
429	reimbursement contract reflecting the obligations of the fund
430	and insurers selecting an option to increase an insurer's FHCF
431	coverage limit.
432	(e)  TICL options addendum.--
433	1.  The TICL options addendum shall provide for
434	reimbursement of TICL insurers for covered events occurring
435	between June 1, 2007, and May 31, 2008, and between June 1,
436	2008, and May 31, 2009, or between June 1, 2009, and May 31,
437	2010, between June 1, 2010, and December 31, 2010, between
438	January 1, 2011, and December 31, 2011, between January 1, 2012,
439	and December 31, 2012, or between January 1, 2013, and December
440	31, 2013, in exchange for the TICL reimbursement premium paid
441	into the fund under paragraph (f). Any insurer writing covered
442	policies has the option of selecting an increased limit of
443	coverage under the TICL options addendum and shall select such
444	coverage at the time that it executes the FHCF reimbursement
445	contract.
446	2.a.  The TICL addendum for the contract year commencing
447	June 1, 2007, and ending May 31, 2008, or the contract year
448	commencing June 1, 2008, and ending May 31, 2009, shall contain
449	a promise by the board to reimburse the TICL insurer for 45
450	percent, 75 percent, or 90 percent of its losses from each
451	covered event in excess of the insurer's retention, plus 5
452	percent of the reimbursed losses to cover loss adjustment
453	expenses. The percentage shall be the same as the coverage level
454	selected by the insurer under paragraph (4)(b).
455	b.  The TICL addendum for the contract year commencing June
456	1, 2009, and ending May 31, 2010, shall contain a promise by the
457	board to reimburse the TICL insurer for 45 percent or 75 percent
458	of its losses from each covered event in excess of the insurer's
459	retention, plus 5 percent of the reimbursed losses to cover loss
460	adjustment expenses.
461	c.  The TICL addendum for the contract year commencing June
462	1, 2010, and ending December 31, 2010, shall contain a promise
463	by the board to reimburse the TICL insurer for 45 percent or 65
464	percent of its losses from each covered event in excess of the
465	insurer's retention, plus 5 percent of the reimbursed losses to
466	cover loss adjustment expenses.
467	d.  The TICL addendum for the contract year commencing
468	January 1, 2011, and ending December 31, 2011, shall contain a
469	promise by the board to reimburse the TICL insurer for 45
470	percent or 55 percent of its losses from each covered event in
471	excess of the insurer's retention, plus 5 percent of the
472	reimbursed losses to cover loss adjustment expenses.
473	e.  The TICL addendum for the contract year commencing
474	January 1, 2012, and ending December 31, 2012, shall contain a
475	promise by the board to reimburse the TICL insurer for 45
476	percent of its losses from each covered event in excess of the
477	insurer's retention, plus 5 percent of the reimbursed losses to
478	cover loss adjustment expenses.
479	f.  The TICL addendum for the contract year commencing
480	January 1, 2013, and ending December 31, 2013, shall contain a
481	promise by the board to reimburse the TICL insurer for 30
482	percent of its losses from each covered event in excess of the
483	insurer's retention, plus 5 percent of the reimbursed losses to
484	cover loss adjustment expenses.
485	3.  The TICL addendum shall provide that reimbursement
486	amounts shall not be reduced by reinsurance paid or payable to
487	the insurer from other sources.
488	4.  The priorities, schedule, and method of reimbursements
489	under the TICL addendum shall be the same as provided under
490	subsection (4).
491	(f)  TICL reimbursement premiums.--Each TICL insurer shall
492	pay to the fund, in the manner and at the time provided in the
493	reimbursement contract for payment of reimbursement premiums, a
494	TICL reimbursement premium determined as specified in subsection
495	(5), except that a cash build-up factor does not apply to the
496	TICL reimbursement premiums. However, the TICL reimbursement
497	premium shall be increased in contract year 2009-2010 by a
498	factor of two, in the contract year beginning June 1, 2010, and
499	ending December 31, 2010, by a factor of three, in the 2011
500	contract year by a factor of four, in the 2012 contract year by
501	a factor of five, and in the 2013 contract year by a factor of
502	six.
503	(g)  Effect on claims-paying capacity of the fund.--For the
504	contract terms commencing June 1, 2007, June 1, 2008, and June
505	1, 2009, June 1, 2010, January 1, 2011, January 1, 2012, and
506	January 1, 2013, the program created by this subsection shall
507	increase the claims-paying capacity of the fund as provided in
508	subparagraph (4)(c)1. by an amount not to exceed $12 billion and
509	shall depend on the TICL coverage options selected and the
510	number of insurers that select the TICL optional coverage. The
511	additional capacity shall apply only to the additional coverage
512	provided under the TICL options and shall not otherwise affect
513	any insurer's reimbursement from the fund if the insurer chooses
514	not to select the temporary option to increase its limit of
515	coverage under the FHCF.
516	(h)  Increasing the claims-paying capacity of the
517	fund.--For the contract years commencing June 1, 2007, June 1,
518	2008, and June 1, 2009, the board may increase the claims-paying
519	capacity of the fund as provided in paragraph (g) by an amount
520	not to exceed $4 billion in four $1 billion options and shall
521	depend on the TICL coverage options selected and the number of
522	insurers that select the TICL optional coverage. Each insurer's
523	TICL premium shall be calculated based upon the additional limit
524	of increased coverage that the insurer selects. Such limit is
525	determined by multiplying the TICL multiple associated with one
526	of the four options times the insurer's FHCF reimbursement
527	premium. The reimbursement premium associated with the
528	additional coverage provided in this paragraph shall be
529	determined as specified in subsection (5).
530	Section 3.  Section 215.5586, Florida Statutes, as amended
531	by section 1 of chapter 2009-10, Laws of Florida, is amended to
532	read:
533	215.5586  My Safe Florida Home Program.--There is
534	established within the Department of Financial Services the My
535	Safe Florida Home Program. The department shall provide fiscal
536	accountability, contract management, and strategic leadership
537	for the program, consistent with this section. This section does
538	not create an entitlement for property owners or obligate the
539	state in any way to fund the inspection or retrofitting of
540	residential property in this state. Implementation of this
541	program is subject to annual legislative appropriations. It is
542	the intent of the Legislature that the My Safe Florida Home
543	Program provide trained and certified inspectors to perform
544	inspections for owners of for at least 400,000 site-built,
545	single-family, residential properties and provide grants to
546	eligible at least 35,000 applicants as funding allows before
547	June 30, 2009. The program shall develop and implement a
548	comprehensive and coordinated approach for hurricane damage
549	mitigation that may shall include the following:
550	(1)  HURRICANE MITIGATION INSPECTIONS.--
551	(a)  Certified inspectors to provide free home-retrofit
552	inspections of site-built, single-family, residential property
553	may shall be offered throughout the state to determine what
554	mitigation measures are needed, what insurance premium discounts
555	may be available, and what improvements to existing residential
556	properties are needed to reduce the property's vulnerability to
557	hurricane damage. The Department of Financial Services shall
558	contract with wind certification entities to provide free
559	hurricane mitigation inspections. The inspections provided to
560	homeowners, at a minimum, must include:
561	1.  A home inspection and report that summarizes the
562	results and identifies recommended improvements a homeowner may
563	take to mitigate hurricane damage.
564	2.  A range of cost estimates regarding the recommended
565	mitigation improvements.
566	3.  Insurer-specific information regarding premium
567	discounts correlated to the current mitigation features and the
568	recommended mitigation improvements identified by the
569	inspection.
570	4.  A hurricane resistance rating scale specifying the
571	home's current as well as projected wind resistance
572	capabilities. As soon as practical, the rating scale must be the
573	uniform home grading scale adopted by the Financial Services
574	Commission pursuant to s. 215.55865.
575	(b)  To qualify for selection by the department as a wind
576	certification entity to provide hurricane mitigation
577	inspections, the entity shall, at a minimum, meet the following
578	requirements:
579	1.  Use hurricane mitigation inspectors who:
580	a.  Are certified as a building inspector under s. 468.607;
581	b.  Are licensed as a general or residential contractor
582	under s. 489.111;
583	c.  Are licensed as a professional engineer under s.
584	471.015 and who have passed the appropriate equivalency test of
585	the Building Code Training Program as required by s. 553.841;
586	d.  Are licensed as a professional architect under s.
587	481.213; or
588	e.  Have at least 2 years of experience in residential
589	construction or residential building inspection and have
590	received specialized training in hurricane mitigation
591	procedures. Such training may be provided by a class offered
592	online or in person.
593	2.  Use hurricane mitigation inspectors who also:
594	a.  Have undergone drug testing and level 2 background
595	checks pursuant to s. 435.04. The department may conduct
596	criminal record checks of inspectors used by wind certification
597	entities. Inspectors must submit a set of the fingerprints to
598	the department for state and national criminal history checks
599	and must pay the fingerprint processing fee set forth in s.
600	624.501. The fingerprints shall be sent by the department to the
601	Department of Law Enforcement and forwarded to the Federal
602	Bureau of Investigation for processing. The results shall be
603	returned to the department for screening. The fingerprints shall
604	be taken by a law enforcement agency, designated examination
605	center, or other department-approved entity; and
606	b.  Have been certified, in a manner satisfactory to the
607	department, to conduct the inspections.
608	3.  Provide a quality assurance program including a
609	reinspection component.
610	(c)  The department shall implement a quality assurance
611	program that includes a statistically valid number of
612	reinspections.
613	(d)  An application for an inspection must contain a signed
614	or electronically verified statement made under penalty of
615	perjury that the applicant has submitted only a single
616	application for that home.
617	(e)  The owner of a site-built, single-family, residential
618	property may apply for and receive an inspection without also
619	applying for a grant pursuant to subsection (2) and without
620	meeting the requirements of paragraph (2)(a).
621	(2)  MITIGATION GRANTS.--Financial grants shall be used to
622	encourage single-family, site-built, owner-occupied, residential
623	property owners to retrofit their properties to make them less
624	vulnerable to hurricane damage.
625	(a)  For a homeowner to be eligible for a grant, the
626	following criteria for persons who have obtained a completed
627	inspection after May 1, 2007, a residential property must be
628	met:
629	1.  The homeowner must have been granted a homestead
630	exemption on the home under chapter 196.
631	2.  The home must be a dwelling with an insured value of
632	$300,000 or less. Homeowners who are low-income persons, as
633	defined in s. 420.0004(10), are exempt from this requirement.
634	3.  The home must have undergone an acceptable hurricane
635	mitigation inspection after May 1, 2007.
636	4.  The home must be located in the "wind-borne debris
637	region" as that term is defined in s. 1609.2, International
638	Building Code (2006), or as subsequently amended.
639	5.  Be a home for which The building permit application for
640	initial construction of the home must have been was made before
641	March 1, 2002.
642
643	An application for a grant must contain a signed or
644	electronically verified statement made under penalty of perjury
645	that the applicant has submitted only a single application and
646	must have attached documents demonstrating the applicant meets
647	the requirements of this paragraph.
648	(b)  All grants must be matched on a dollar-for-dollar
649	basis up to for a total of $10,000 for the actual cost of the
650	mitigation project with the state's contribution not to exceed
651	$5,000.
652	(c)  The program shall create a process in which
653	contractors agree to participate and homeowners select from a
654	list of participating contractors. All mitigation must be based
655	upon the securing of all required local permits and inspections
656	and must be performed by properly licensed contractors.
657	Mitigation projects are subject to random reinspection of up to
658	at least 5 percent of all projects. Hurricane mitigation
659	inspectors qualifying for the program may also participate as
660	mitigation contractors as long as the inspectors meet the
661	department's qualifications and certification requirements for
662	mitigation contractors.
663	(d)  Matching fund grants shall also be made available to
664	local governments and nonprofit entities for projects that will
665	reduce hurricane damage to single-family, site-built, owner-
666	occupied, residential property. The department shall liberally
667	construe those requirements in favor of availing the state of
668	the opportunity to leverage funding for the My Safe Florida Home
669	Program with other sources of funding.
670	(e)  When recommended by a hurricane mitigation inspection,
671	grants may be used for the following improvements only:
672	1.  Opening protection.
673	2.  Exterior doors, including garage doors.
674	3.  Brace gable ends.
675	4.  Reinforcing roof-to-wall connections.
676	5.  Improving the strength of roof-deck attachments.
677	6.  Upgrading roof covering from code to code plus.
678	7.  Secondary water barrier for roof.
679
680	The department may require that improvements be made to all
681	openings, including exterior doors and garage doors, as a
682	condition of reimbursing a homeowner approved for a grant.
683	(f)  Grants may be used on a previously inspected existing
684	structure or on a rebuild. A rebuild is defined as a site-built,
685	single-family dwelling under construction to replace a home that
686	was destroyed or significantly damaged by a hurricane and deemed
687	unlivable by a regulatory authority. The homeowner must be a
688	low-income homeowner as defined in paragraph (g), must have had
689	a homestead exemption for that home prior to the hurricane, and
690	must be intending to rebuild the home as that homeowner's
691	homestead.
692	(g)  Low-income homeowners, as defined in s. 420.0004(10),
693	who otherwise meet the requirements of paragraphs (a), (c), (e),
694	and (f) are eligible for a grant of up to $5,000 and are not
695	required to provide a matching amount to receive the grant.
696	Additionally, for low-income homeowners, grant funding may be
697	used for repair to existing structures leading to any of the
698	mitigation improvements provided in paragraph (e), limited to 20
699	percent of the grant value. The program may accept a
700	certification directly from a low-income homeowner that the
701	homeowner meets the requirements of s. 420.0004(10) if the
702	homeowner provides such certification in a signed or
703	electronically verified statement made under penalty of perjury.
704	(h)  The department shall establish objective, reasonable
705	criteria for prioritizing grant applications, consistent with
706	the requirements of this section.
707	(i)  The department shall develop a process that ensures
708	the most efficient means to collect and verify grant
709	applications to determine eligibility and may direct hurricane
710	mitigation inspectors to collect and verify grant application
711	information or use the Internet or other electronic means to
712	collect information and determine eligibility.
713	(3)  EDUCATION AND CONSUMER AWARENESS.--The department may
714	undertake a statewide multimedia public outreach and advertising
715	campaign to inform consumers of the availability and benefits of
716	hurricane inspections and of the safety and financial benefits
717	of residential hurricane damage mitigation. The department may
718	seek out and use local, state, federal, and private funds to
719	support the campaign.
720	(4)  ADVISORY COUNCIL.--There is created an advisory
721	council to provide advice and assistance to the department
722	regarding administration of the program. The advisory council
723	shall consist of:
724	(a)  A representative of lending institutions, selected by
725	the Financial Services Commission from a list of at least three
726	persons recommended by the Florida Bankers Association.
727	(b)  A representative of residential property insurers,
728	selected by the Financial Services Commission from a list of at
729	least three persons recommended by the Florida Insurance
730	Council.
731	(c)  A representative of home builders, selected by the
732	Financial Services Commission from a list of at least three
733	persons recommended by the Florida Home Builders Association.
734	(d)  A faculty member of a state university, selected by
735	the Financial Services Commission, who is an expert in
736	hurricane-resistant construction methodologies and materials.
737	(e)  Two members of the House of Representatives, selected
738	by the Speaker of the House of Representatives.
739	(f)  Two members of the Senate, selected by the President
740	of the Senate.
741	(g)  The Chief Executive Officer of the Federal Alliance
742	for Safe Homes, Inc., or his or her designee.
743	(h)  The senior officer of the Florida Hurricane
744	Catastrophe Fund.
745	(i)  The executive director of Citizens Property Insurance
746	Corporation.
747	(j)  The director of the Division of Emergency Management
748	of the Department of Community Affairs.
749
750	Members appointed under paragraphs (a)-(d) shall serve at the
751	pleasure of the Financial Services Commission. Members appointed
752	under paragraphs (e) and (f) shall serve at the pleasure of the
753	appointing officer. All other members shall serve as voting ex
754	officio members. Members of the advisory council shall serve
755	without compensation but may receive reimbursement as provided
756	in s. 112.061 for per diem and travel expenses incurred in the
757	performance of their official duties.
758	(5)  FUNDING.--The department may seek out and leverage
759	local, state, federal, or private funds to enhance the financial
760	resources of the program.
761	(6)  RULES.--The Department of Financial Services shall
762	adopt rules pursuant to ss. 120.536(1) and 120.54 to govern the
763	program; implement the provisions of this section; including
764	rules governing hurricane mitigation inspections and grants,
765	mitigation contractors, and training of inspectors and
766	contractors; and carry out the duties of the department under
767	this section.
768	(7)  HURRICANE MITIGATION INSPECTOR LIST.--The department
769	shall develop and maintain as a public record a current list of
770	hurricane mitigation inspectors authorized to conduct hurricane
771	mitigation inspections pursuant to this section.
772	(8)  NO-INTEREST LOANS.--The department shall implement a
773	no-interest loan program by October 1, 2008, contingent upon the
774	selection of a qualified vendor and execution of a contract
775	acceptable to the department and the vendor. The department
776	shall enter into partnerships with the private sector to provide
777	loans to owners of site-built, single-family, residential
778	property to pay for mitigation measures listed in subsection
779	(2). A loan eligible for interest payments pursuant to this
780	subsection may be for a term of up to 3 years and cover up to
781	$5,000 in mitigation measures. The department shall pay the
782	creditor the market rate of interest using funds appropriated
783	for the My Safe Florida Home Program. In no case shall the
784	department pay more than the interest rate set by s. 687.03. To
785	be eligible for a loan, a loan applicant must first obtain a
786	home inspection and report that specifies what improvements are
787	needed to reduce the property's vulnerability to windstorm
788	damage pursuant to this section and meet loan underwriting
789	requirements set by the lender. The department may adopt rules
790	pursuant to ss. 120.536(1) and 120.54 to implement this
791	subsection which may include eligibility criteria.
792	(8)(9)  PUBLIC OUTREACH FOR CONTRACTORS AND REAL ESTATE
793	BROKERS AND SALES ASSOCIATES.--The program shall develop
794	brochures for distribution to general contractors, roofing
795	contractors, and real estate brokers and sales associates
796	licensed under part I of chapter 475 explaining the benefits to
797	homeowners of residential hurricane damage mitigation. The
798	program shall encourage contractors to distribute the brochures
799	to homeowners at the first meeting with a homeowner who is
800	considering contracting for home or roof repairs or contracting
801	for the construction of a new home. The program shall encourage
802	real estate brokers and sales associates licensed under part I
803	of chapter 475 to distribute the brochures to clients prior to
804	the purchase of a home. The brochures may be made available
805	electronically.
806	(9)(10)  CONTRACT MANAGEMENT.--The department may contract
807	with third parties for grants management, inspection services,
808	contractor services for low-income homeowners, information
809	technology, educational outreach, and auditing services. Such
810	contracts shall be considered direct costs of the program and
811	shall not be subject to administrative cost limits, but
812	contracts valued at $1 million $500,000 or more shall be subject
813	to review and approval by the Legislative Budget Commission. The
814	department shall contract with providers that have a
815	demonstrated record of successful business operations in areas
816	directly related to the services to be provided and shall ensure
817	the highest accountability for use of state funds, consistent
818	with this section.
819	(10)(11)  INTENT.--It is the intent of the Legislature that
820	grants made to residential property owners under this section
821	shall be considered disaster-relief assistance within the
822	meaning of s. 139 of the Internal Revenue Code of 1986, as
823	amended.
824	(11)(12)  REPORTS.--The department shall make an annual
825	report on the activities of the program that shall account for
826	the use of state funds and indicate the number of inspections
827	requested, the number of inspections performed, the number of
828	grant applications received, and the number and value of grants
829	approved. The report shall be delivered to the President of the
830	Senate and the Speaker of the House of Representatives by
831	February 1 of each year.
832	(12)  CONDOMINIUM MITIGATION LOAN PROGRAM.--
833	(a)  The department may implement a condominium mitigation
834	loan program to assist condominiums in mitigating all units in
835	their structure against wind damage. The program shall have the
836	following minimum requirements:
837	1.  The department shall contract with lenders to offer
838	hurricane mitigation loan subsidies equal to a competitive rate
839	of interest on a loan balance of up to $5,000 per condominium
840	unit for 3 years. The interest subsidy may be paid in advance by
841	the department to a lender participating in the program.
842	2.  The loans must be used to purchase or install hurricane
843	mitigation measures identified in paragraph (2)(e).
844	3.  A participating condominium association must agree to
845	purchase and install approved mitigation measures for 100
846	percent of the units in the condominium structure that lack the
847	approved mitigation measures.
848	4.  To be eligible, a condominium must have been permitted
849	for construction on or before March 1, 2002, be located in the
850	wind-borne debris region, and be insured by Citizens Property
851	Insurance Corporation.
852	5.  Condominiums of more than 200 units are not eligible
853	for the loan program.
854	6.  The department may contract with third parties for
855	auditing and related services to ensure accountability and
856	program quality.
857	(b)  The loan program shall be administered on a first-
858	come, first-served basis.
859	(c)  The department shall adopt rules pursuant to ss.
860	120.536(1) and 120.54 to implement the loan program.
861	Section 4.  Subsections (5) and (6) are added to section
862	624.4622, Florida Statutes, to read:
863	624.4622  Local government self-insurance funds.--
864	(5)  A local government self-insurance fund may not require
865	its members to provide more than 30 days' notice of the member's
866	intention to withdraw from the self-insurance fund as a
867	prerequisite for withdrawing from the self-insurance fund.
868	(6)(a)  Each local government self-insurance fund shall
869	submit annually to the office, to the governing body of each
870	member participant, and to the governing board of each new
871	member before the inception of the policy an affidavit stating
872	whether an officer or owner of or the manager or administrator
873	of a local government self-insurance fund has ever:
874	1.  Been charged with, or indicted for, any criminal
875	offense other than a motor vehicle offense;
876	2.  Pled guilty or nolo contendere to, or been convicted
877	of, any criminal offense other than a motor vehicle offense;
878	3.  Had adjudication of guilt withheld, had a sentence
879	imposed or suspended, had a pronouncement of a sentence
880	suspended, or been pardoned, fined, or placed on probation for
881	any criminal offense other than a motor vehicle offense; or
882	4  Been, within the last 10 years, found liable in any
883	civil action involving dishonesty or a breach of trust.
884	(b)  If the record has been sealed or expunged and the
885	respondent has personally verified that the record was sealed or
886	expunged, a respondent may respond "no" to the question.
887	Section 5.  Paragraph (r) of subsection (1) of section
888	624.605, Florida Statutes, is amended to read:
889	624.605  "Casualty insurance" defined.--
890	(1)  "Casualty insurance" includes:
891	(r)  Insurance for debt cancellation products.--Insurance
892	that a creditor may purchase against the risk of financial loss
893	from the use of debt cancellation products with consumer loans
894	or leases or retail installment contracts. Insurance for debt
895	cancellation products is not liability insurance but shall be
896	considered credit insurance only for the purposes of s.
897	631.52(4).
898	1.  For purposes of this paragraph, the term "debt
899	cancellation products" means loan, lease, or retail installment
900	contract terms, or modifications to loan, lease, or retail
901	installment contracts, under which a creditor agrees to cancel
902	or suspend all or part of a customer's obligation to make
903	payments upon the occurrence of specified events and includes,
904	but is not limited to, debt cancellation contracts, debt
905	suspension agreements, and guaranteed asset protection
906	contracts. However, the term "debt cancellation products" does
907	not include title insurance as defined in s. 624.608.
908	2.  Debt cancellation products may be offered by financial
909	institutions, as defined in s. 655.005(1)(h), insured depository
910	institutions, as defined in 12 U.S.C. s. 1813(c), and
911	subsidiaries of such institutions, as provided in the financial
912	institutions codes, or by other business entities selling a
913	product that may be goods, services, or real property and
914	interests in real property, the sale of which product is
915	regulated by an agency of the state and when the extension of
916	credit is offered in connection with the purchase of such
917	product. as may be specifically authorized by law, and Such debt
918	cancellation products shall not constitute insurance for
919	purposes of the Florida Insurance Code.
920	Section 6.  Paragraphs (a) and (i) of subsection (2) of
921	section 627.062, Florida Statutes, are amended, and paragraph
922	(k) is added to that subsection, to read:
923	627.062  Rate standards.--
924	(2)  As to all such classes of insurance:
925	(a)  Insurers or rating organizations shall establish and
926	use rates, rating schedules, or rating manuals to allow the
927	insurer a reasonable rate of return on such classes of insurance
928	written in this state. A copy of rates, rating schedules, rating
929	manuals, premium credits or discount schedules, and surcharge
930	schedules, and changes thereto, shall be filed with the office
931	under one of the following procedures except as provided in
932	subparagraph 3.:
933	1.  If the filing is made at least 90 days before the
934	proposed effective date and the filing is not implemented during
935	the office's review of the filing and any proceeding and
936	judicial review, then such filing shall be considered a "file
937	and use" filing. In such case, the office shall finalize its
938	review by issuance of a notice of intent to approve or a notice
939	of intent to disapprove within 90 days after receipt of the
940	filing. The notice of intent to approve and the notice of intent
941	to disapprove constitute agency action for purposes of the
942	Administrative Procedure Act. Requests for supporting
943	information, requests for mathematical or mechanical
944	corrections, or notification to the insurer by the office of its
945	preliminary findings shall not toll the 90-day period during any
946	such proceedings and subsequent judicial review. The rate shall
947	be deemed approved if the office does not issue a notice of
948	intent to approve or a notice of intent to disapprove within 90
949	days after receipt of the filing.
950	2.  If the filing is not made in accordance with the
951	provisions of subparagraph 1., such filing shall be made as soon
952	as practicable, but no later than 30 days after the effective
953	date, and shall be considered a "use and file" filing. An
954	insurer making a "use and file" filing is potentially subject to
955	an order by the office to return to policyholders portions of
956	rates found to be excessive, as provided in paragraph (h).
957	3.  For all property insurance filings made or submitted
958	after January 25, 2007, but before December 31, 2010 2009, an
959	insurer seeking a rate that is greater than the rate most
960	recently approved by the office shall make a "file and use"
961	filing. For purposes of this subparagraph, motor vehicle
962	collision and comprehensive coverages are not considered to be
963	property coverages.
964	(i)1.  Except as otherwise specifically provided in this
965	chapter, the office shall not prohibit any insurer, including
966	any residual market plan or joint underwriting association, from
967	paying acquisition costs based on the full amount of premium, as
968	defined in s. 627.403, applicable to any policy, or prohibit any
969	such insurer from including the full amount of acquisition costs
970	in a rate filing.
971	2.  Unless specifically authorized by law, the office shall
972	not interfere, directly or indirectly, with an insurer's right
973	to solicit, sell, promote, or otherwise acquire policyholders
974	and implement coverage using its own lawful methodologies,
975	systems, agents, and approaches, including the calculation,
976	manner, or amount of agent commissions, if any. This
977	subparagraph applies only to rate filings made pursuant to this
978	section.
979	(k)  Effective January 1, 2010, notwithstanding any other
980	provision of this section:
981	1.  With respect to any residential property insurance
982	subject to regulation under this section, a rate filing,
983	including, but not limited to, any rate changes, rating factors,
984	territories, classifications, discounts, and credits, with
985	respect to any policy form, including endorsements issued with
986	the form, that results in an overall average statewide premium
987	increase or decrease of no more than 10 percent above or below
988	the premium that would result from the insurer's rates then in
989	effect shall not be subject to a determination by the office
990	that the rate is excessive or unfairly discriminatory, except as
991	provided in subparagraph 3. or any other provision of law,
992	provided all changes specified in the filing do not result in an
993	overall premium increase of more than 15 percent for any one
994	territory for reasons related solely to the rate change. As used
995	in this subparagraph, the term "insurer's rates then in effect"
996	includes only rates that have been lawfully in effect under this
997	section or rates that have been determined to be lawful through
998	administrative proceedings or judicial proceedings.
999	2.  An insurer may not make filings under this paragraph
1000	with respect to any policy form, including endorsements issued
1001	with the form, if the overall premium changes resulting from
1002	such filings exceed the amounts specified in this paragraph in
1003	any 12-month period. An insurer may proceed under other
1004	provisions of this section or other provisions of the laws of
1005	this state if the insurer seeks to exceed the premium or rate
1006	limitations of this paragraph.
1007	3.  This paragraph does not affect the authority of the
1008	office to disapprove a rate as inadequate or to disapprove a
1009	filing for the unlawful use of unfairly discriminatory rating
1010	factors that are prohibited by the laws of this state. An
1011	insurer electing to implement a rate change under this paragraph
1012	shall submit a filing to the office at least 30 days prior to
1013	the effective date of the rate change. The office shall have 30
1014	days after the filing's submission to review the filing and
1015	determine if the rate is inadequate or uses unfairly
1016	discriminatory rating factors. Absent a finding by the office
1017	within such 30-day period that the rate is inadequate or that
1018	the insurer has used unfairly discriminatory rating factors, the
1019	filing is deemed approved. If the insurer is implementing an
1020	overall rate decrease and the office finds during the 30-day
1021	period that the filing will result in inadequate premiums or
1022	otherwise endanger the insurer's solvency, the office shall
1023	suspend the rate decrease. If the insurer is implementing an
1024	overall rate increase the results of which continue to produce
1025	an inadequate rate, such increase shall proceed pending
1026	additional action by the office to ensure the adequacy of the
1027	rate.
1028	4.  This paragraph does not apply to rate filings for any
1029	insurance other than residential property insurance.
1030
1031	The provisions of this subsection shall not apply to workers'
1032	compensation and employer's liability insurance and to motor
1033	vehicle insurance.
1034	Section 7.  Section 627.0621, Florida Statutes, as amended
1035	by section 82 of chapter 2009-21, Laws of Florida, is amended to
1036	read:
1037	627.0621  Transparency in rate regulation.--
1038	(1)  DEFINITIONS.--As used in this section, the term:
1039	(a)  "Rate filing" means any original or amended rate
1040	residential property insurance filing.
1041	(b)  "Recommendation" means any proposed, preliminary, or
1042	final recommendation from an office actuary reviewing a rate
1043	filing with respect to the issue of approval or disapproval of
1044	the rate filing or with respect to rate indications that the
1045	office would consider acceptable.
1046	(2)  WEBSITE FOR PUBLIC ACCESS TO RATE FILING
1047	INFORMATION.--With respect to any rate filing made on or after
1048	July 1, 2008, the office shall provide the following information
1049	on a publicly accessible Internet website:
1050	(a)  The overall rate change requested by the insurer.
1051	(b)  All assumptions made by the office's actuaries.
1052	(c)  A statement describing any assumptions or methods that
1053	deviate from the actuarial standards of practice of the Casualty
1054	Actuarial Society or the American Academy of Actuaries,
1055	including an explanation of the nature, rationale, and effect of
1056	the deviation.
1057	(d)  All recommendations made by any office actuary who
1058	reviewed the rate filing.
1059	(e)  Certification by the office's actuary that, based on
1060	the actuary's knowledge, his or her recommendations are
1061	consistent with accepted actuarial principles.
1062	(f)  The overall rate change approved by the office.
1063	(3)  ATTORNEY-CLIENT PRIVILEGE; WORK PRODUCT.--It is the
1064	intent of the Legislature that the principles of the public
1065	records and open meetings laws apply to the assertion of
1066	attorney-client privilege and work product confidentiality by
1067	the office in connection with a challenge to its actions on a
1068	rate filing. Therefore, in any administrative or judicial
1069	proceeding relating to a rate filing, attorney-client privilege
1070	and work product exemptions from disclosure do not apply to
1071	communications with office attorneys or records prepared by or
1072	at the direction of an office attorney, except when the
1073	conditions of paragraphs (a) and (b) have been met:
1074	(a)  The communication or record reflects a mental
1075	impression, conclusion, litigation strategy, or legal theory of
1076	the attorney or office that was prepared exclusively for civil
1077	or criminal litigation or adversarial administrative
1078	proceedings.
1079	(b)  The communication occurred or the record was prepared
1080	after the initiation of an action in a court of competent
1081	jurisdiction, after the issuance of a notice of intent to deny a
1082	rate filing, or after the filing of a request for a proceeding
1083	under ss. 120.569 and 120.57.
1084	Section 8.  Subsection (4) is added to section 627.0628,
1085	Florida Statutes, to read:
1086	627.0628  Florida Commission on Hurricane Loss Projection
1087	Methodology; public records exemption; public meetings
1088	exemption.--
1089	(4)  REVIEW OF DISCOUNTS, CREDITS, OTHER RATE
1090	DIFFERENTIALS, AND REDUCTIONS IN DEDUCTIBLES RELATING TO
1091	WINDSTORM MITIGATION.--The commission shall hold public meetings
1092	for the purpose of receiving testimony and data regarding the
1093	implementation of windstorm mitigation discounts, credits, other
1094	rate differentials, and appropriate reductions in deductibles
1095	pursuant to s. 627.0629. After reviewing the testimony and data
1096	as well as any other information the commission deems
1097	appropriate, the commission shall present a report by October 1,
1098	2009, to the Governor, the Cabinet, the President of the Senate,
1099	and the Speaker of the House of Representatives, including
1100	recommendations on improving the process of assessing,
1101	determining, and applying windstorm mitigation discounts,
1102	credits, other rate differentials, and appropriate reductions in
1103	deductibles pursuant to s. 627.0629.
1104	Section 9.  Paragraph (b) of subsection (1) and subsection
1105	(5) of section 627.0629, Florida Statutes, are amended to read:
1106	627.0629  Residential property insurance; rate filings.--
1107	(1)
1108	(b)  By February 1, 2011, the Office of Insurance
1109	Regulation, in consultation with the Department of Financial
1110	Services and the Department of Community Affairs, shall develop
1111	and make publicly available a proposed method for insurers to
1112	establish discounts, credits, or other rate differentials for
1113	hurricane mitigation measures which directly correlate to the
1114	numerical rating assigned to a structure pursuant to the uniform
1115	home grading scale adopted by the Financial Services Commission
1116	pursuant to s. 215.55865, including any proposed changes to the
1117	uniform home grading scale. By October 1, 2011, the commission
1118	shall adopt rules requiring insurers to make rate filings for
1119	residential property insurance which revise insurers' discounts,
1120	credits, or other rate differentials for hurricane mitigation
1121	measures so that such rate differentials correlate directly to
1122	the uniform home grading scale. The rules may include such
1123	changes to the uniform home grading scale as the commission
1124	determines are necessary, and may specify the minimum required
1125	discounts, credits, or other rate differentials. Such rate
1126	differentials must be consistent with generally accepted
1127	actuarial principles and wind-loss mitigation studies. The rules
1128	shall allow a period of at least 2 years after the effective
1129	date of the revised mitigation discounts, credits, or other rate
1130	differentials for a property owner to obtain an inspection or
1131	otherwise qualify for the revised credit, during which time the
1132	insurer shall continue to apply the mitigation credit that was
1133	applied immediately prior to the effective date of the revised
1134	credit. Discounts, credits, and other rate differentials
1135	established for rate filings under this paragraph shall
1136	supersede, after adoption, the discounts, credits, and other
1137	rate differentials included in rate filings under paragraph (a).
1138	(5)  In order to provide an appropriate transition period,
1139	an insurer may, in its sole discretion, implement an approved
1140	rate filing for residential property insurance over a period of
1141	years. An insurer electing to phase in its rate filing must
1142	provide an informational notice to the office setting out its
1143	schedule for implementation of the phased-in rate filing. An
1144	insurer may include in its rate the actual cost of reinsurance
1145	without the addition of an expense or profit load for the
1146	insurer that duplicates coverage of the temporary increase in
1147	coverage limit (TICL) available from the Florida Hurricane
1148	Catastrophe Fund, even if the insurer does not purchase the TICL
1149	coverage, to the extent the total annual base rate increase does
1150	not exceed 10 percent as a result of such inclusion.
1151	Section 10.  Section 627.0655, Florida Statutes, is amended
1152	to read:
1153	627.0655  Policyholder loss or expense-related premium
1154	discounts.--An insurer or person authorized to engage in the
1155	business of insurance in this state may include, in the premium
1156	charged an insured for any policy, contract, or certificate of
1157	insurance, a discount based on the fact that another policy,
1158	contract, or certificate of any type has been purchased by the
1159	insured from the same insurer or insurer group, or, for policies
1160	issued or renewed before January 1, 2010, from the Citizens
1161	Property Insurance Corporation created under s. 627.351(6) if
1162	the same insurance agent is servicing both policies, or for
1163	policies issued or renewed before January 1, 2010, from an
1164	insurer that has removed the policy from the Citizens Property
1165	Insurance Corporation if the same insurance agent is servicing
1166	both policies.
1167	Section 11.  Paragraphs (y) through (ee) of subsection (6)
1168	of section 627.351, Florida Statutes, are redesignated as
1169	paragraphs (x) through (dd), respectively, and paragraphs (a),
1170	(b), (c), and (m) and present paragraph (x) of that subsection
1171	are amended to read:
1172	627.351  Insurance risk apportionment plans.--
1173	(6)  CITIZENS PROPERTY INSURANCE CORPORATION.--
1174	(a)1.  It is the public purpose of this subsection to
1175	ensure the existence of an orderly market for property insurance
1176	for Floridians and Florida businesses. The Legislature finds
1177	that private insurers are unwilling or unable to provide
1178	affordable property insurance coverage in this state to the
1179	extent sought and needed. The absence of affordable property
1180	insurance threatens the public health, safety, and welfare and
1181	likewise threatens the economic health of the state. The state
1182	therefore has a compelling public interest and a public purpose
1183	to assist in assuring that property in the state is insured and
1184	that it is insured at affordable rates so as to facilitate the
1185	remediation, reconstruction, and replacement of damaged or
1186	destroyed property in order to reduce or avoid the negative
1187	effects otherwise resulting to the public health, safety, and
1188	welfare, to the economy of the state, and to the revenues of the
1189	state and local governments which are needed to provide for the
1190	public welfare. It is necessary, therefore, to provide
1191	affordable property insurance to applicants who are in good
1192	faith entitled to procure insurance through the voluntary market
1193	but are unable to do so. The Legislature intends by this
1194	subsection that affordable property insurance be provided and
1195	that it continue to be provided, as long as necessary, through
1196	Citizens Property Insurance Corporation, a government entity
1197	that is an integral part of the state, and that is not a private
1198	insurance company. To that end, Citizens Property Insurance
1199	Corporation shall strive to increase the availability of
1200	affordable property insurance in this state, while achieving
1201	efficiencies and economies, and while providing service to
1202	policyholders, applicants, and agents which is no less than the
1203	quality generally provided in the voluntary market, for the
1204	achievement of the foregoing public purposes. Because it is
1205	essential for this government entity to have the maximum
1206	financial resources to pay claims following a catastrophic
1207	hurricane, it is the intent of the Legislature that Citizens
1208	Property Insurance Corporation continue to be an integral part
1209	of the state and that the income of the corporation be exempt
1210	from federal income taxation and that interest on the debt
1211	obligations issued by the corporation be exempt from federal
1212	income taxation.
1213	2.  The Residential Property and Casualty Joint
1214	Underwriting Association originally created by this statute
1215	shall be known, as of July 1, 2002, as the Citizens Property
1216	Insurance Corporation. The corporation shall provide insurance
1217	for residential and commercial property, for applicants who are
1218	in good faith entitled, but are unable, to procure insurance
1219	through the voluntary market. The corporation shall operate
1220	pursuant to a plan of operation approved by order of the
1221	Financial Services Commission. The plan is subject to continuous
1222	review by the commission. The commission may, by order, withdraw
1223	approval of all or part of a plan if the commission determines
1224	that conditions have changed since approval was granted and that
1225	the purposes of the plan require changes in the plan. The
1226	corporation shall continue to operate pursuant to the plan of
1227	operation approved by the Office of Insurance Regulation until
1228	October 1, 2006. For the purposes of this subsection,
1229	residential coverage includes both personal lines residential
1230	coverage, which consists of the type of coverage provided by
1231	homeowner's, mobile home owner's, dwelling, tenant's,
1232	condominium unit owner's, and similar policies, and commercial
1233	lines residential coverage, which consists of the type of
1234	coverage provided by condominium association, apartment
1235	building, and similar policies.
1236	3.  Effective January 1, 2009, a personal lines residential
1237	structure that has a dwelling replacement cost of $2 million or
1238	more, or a single condominium unit that has a combined dwelling
1239	and content replacement cost of $2 million or more is not
1240	eligible for coverage by the corporation. Such dwellings insured
1241	by the corporation on December 31, 2008, may continue to be
1242	covered by the corporation until the end of the policy term.
1243	However, such dwellings that are insured by the corporation and
1244	become ineligible for coverage due to the provisions of this
1245	subparagraph may reapply and obtain coverage if the property
1246	owner provides the corporation with a sworn affidavit from one
1247	or more insurance agents, on a form provided by the corporation,
1248	stating that the agents have made their best efforts to obtain
1249	coverage and that the property has been rejected for coverage by
1250	at least one authorized insurer and at least three surplus lines
1251	insurers. If such conditions are met, the dwelling may be
1252	insured by the corporation for up to 3 years, after which time
1253	the dwelling is ineligible for coverage. The office shall
1254	approve the method used by the corporation for valuing the
1255	dwelling replacement cost for the purposes of this subparagraph.
1256	If a policyholder is insured by the corporation prior to being
1257	determined to be ineligible pursuant to this subparagraph and
1258	such policyholder files a lawsuit challenging the determination,
1259	the policyholder may remain insured by the corporation until the
1260	conclusion of the litigation.
1261	4.  It is the intent of the Legislature that policyholders,
1262	applicants, and agents of the corporation receive service and
1263	treatment of the highest possible level but never less than that
1264	generally provided in the voluntary market. It also is intended
1265	that the corporation be held to service standards no less than
1266	those applied to insurers in the voluntary market by the office
1267	with respect to responsiveness, timeliness, customer courtesy,
1268	and overall dealings with policyholders, applicants, or agents
1269	of the corporation.
1270	5.  Effective January 1, 2009, a personal lines residential
1271	structure that is located in the "wind-borne debris region," as
1272	defined in s. 1609.2, International Building Code (2006), and
1273	that has an insured value on the structure of $750,000 or more
1274	is not eligible for coverage by the corporation unless the
1275	structure has opening protections as required under the Florida
1276	Building Code for a newly constructed residential structure in
1277	that area. A residential structure shall be deemed to comply
1278	with the requirements of this subparagraph if it has shutters or
1279	opening protections on all openings and if such opening
1280	protections complied with the Florida Building Code at the time
1281	they were installed. Effective January 1, 2010, for personal
1282	lines residential property insured by the corporation that is
1283	located in the wind-borne debris region and has an insured value
1284	on the structure of $500,000 or more, a prospective purchaser of
1285	any such residential property must be provided by the seller a
1286	written disclosure that contains the structure's windstorm
1287	mitigation rating based on the uniform home grading scale
1288	adopted under s. 215.55865. Such rating shall be provided to the
1289	purchaser at or before the time the purchaser executes a
1290	contract for sale and purchase.
1291	(b)1.  All insurers authorized to write one or more subject
1292	lines of business in this state are subject to assessment by the
1293	corporation and, for the purposes of this subsection, are
1294	referred to collectively as "assessable insurers." Insurers
1295	writing one or more subject lines of business in this state
1296	pursuant to part VIII of chapter 626 are not assessable
1297	insurers, but insureds who procure one or more subject lines of
1298	business in this state pursuant to part VIII of chapter 626 are
1299	subject to assessment by the corporation and are referred to
1300	collectively as "assessable insureds." An authorized insurer's
1301	assessment liability shall begin on the first day of the
1302	calendar year following the year in which the insurer was issued
1303	a certificate of authority to transact insurance for subject
1304	lines of business in this state and shall terminate 1 year after
1305	the end of the first calendar year during which the insurer no
1306	longer holds a certificate of authority to transact insurance
1307	for subject lines of business in this state.
1308	2.a.  All revenues, assets, liabilities, losses, and
1309	expenses of the corporation shall be divided into three separate
1310	accounts as follows:
1311	(I)  A personal lines account for personal residential
1312	policies issued by the corporation or issued by the Residential
1313	Property and Casualty Joint Underwriting Association and renewed
1314	by the corporation that provide comprehensive, multiperil
1315	coverage on risks that are not located in areas eligible for
1316	coverage in the Florida Windstorm Underwriting Association as
1317	those areas were defined on January 1, 2002, and for such
1318	policies that do not provide coverage for the peril of wind on
1319	risks that are located in such areas;
1320	(II)  A commercial lines account for commercial residential
1321	and commercial nonresidential policies issued by the corporation
1322	or issued by the Residential Property and Casualty Joint
1323	Underwriting Association and renewed by the corporation that
1324	provide coverage for basic property perils on risks that are not
1325	located in areas eligible for coverage in the Florida Windstorm
1326	Underwriting Association as those areas were defined on January
1327	1, 2002, and for such policies that do not provide coverage for
1328	the peril of wind on risks that are located in such areas; and
1329	(III)  A high-risk account for personal residential
1330	policies and commercial residential and commercial
1331	nonresidential property policies issued by the corporation or
1332	transferred to the corporation that provide coverage for the
1333	peril of wind on risks that are located in areas eligible for
1334	coverage in the Florida Windstorm Underwriting Association as
1335	those areas were defined on January 1, 2002. The corporation may
1336	offer policies that provide multiperil coverage and the
1337	corporation shall continue to offer policies that provide
1338	coverage only for the peril of wind for risks located in areas
1339	eligible for coverage in the high-risk account. In issuing
1340	multiperil coverage, the corporation may use its approved policy
1341	forms and rates for the personal lines account. An applicant or
1342	insured who is eligible to purchase a multiperil policy from the
1343	corporation may purchase a multiperil policy from an authorized
1344	insurer without prejudice to the applicant's or insured's
1345	eligibility to prospectively purchase a policy that provides
1346	coverage only for the peril of wind from the corporation. An
1347	applicant or insured who is eligible for a corporation policy
1348	that provides coverage only for the peril of wind may elect to
1349	purchase or retain such policy and also purchase or retain
1350	coverage excluding wind from an authorized insurer without
1351	prejudice to the applicant's or insured's eligibility to
1352	prospectively purchase a policy that provides multiperil
1353	coverage from the corporation. It is the goal of the Legislature
1354	that there would be an overall average savings of 10 percent or
1355	more for a policyholder who currently has a wind-only policy
1356	with the corporation, and an ex-wind policy with a voluntary
1357	insurer or the corporation, and who then obtains a multiperil
1358	policy from the corporation. It is the intent of the Legislature
1359	that the offer of multiperil coverage in the high-risk account
1360	be made and implemented in a manner that does not adversely
1361	affect the tax-exempt status of the corporation or
1362	creditworthiness of or security for currently outstanding
1363	financing obligations or credit facilities of the high-risk
1364	account, the personal lines account, or the commercial lines
1365	account. The high-risk account must also include quota share
1366	primary insurance under subparagraph (c)2. The area eligible for
1367	coverage under the high-risk account also includes the area
1368	within Port Canaveral, which is bordered on the south by the
1369	City of Cape Canaveral, bordered on the west by the Banana
1370	River, and bordered on the north by Federal Government property.
1371	b.  The three separate accounts must be maintained as long
1372	as financing obligations entered into by the Florida Windstorm
1373	Underwriting Association or Residential Property and Casualty
1374	Joint Underwriting Association are outstanding, in accordance
1375	with the terms of the corresponding financing documents. When
1376	the financing obligations are no longer outstanding, in
1377	accordance with the terms of the corresponding financing
1378	documents, the corporation may use a single account for all
1379	revenues, assets, liabilities, losses, and expenses of the
1380	corporation. Consistent with the requirement of this
1381	subparagraph and prudent investment policies that minimize the
1382	cost of carrying debt, the board shall exercise its best efforts
1383	to retire existing debt or to obtain approval of necessary
1384	parties to amend the terms of existing debt, so as to structure
1385	the most efficient plan to consolidate the three separate
1386	accounts into a single account. By February 1, 2007, the board
1387	shall submit a report to the Financial Services Commission, the
1388	President of the Senate, and the Speaker of the House of
1389	Representatives which includes an analysis of consolidating the
1390	accounts, the actions the board has taken to minimize the cost
1391	of carrying debt, and its recommendations for executing the most
1392	efficient plan.
1393	c.  Creditors of the Residential Property and Casualty
1394	Joint Underwriting Association and of the accounts specified in
1395	sub-sub-subparagraphs a.(I) and (II) may have a claim against,
1396	and recourse to, the accounts referred to in sub-sub-
1397	subparagraphs a.(I) and (II) and shall have no claim against, or
1398	recourse to, the account referred to in sub-sub-subparagraph
1399	a.(III). Creditors of the Florida Windstorm Underwriting
1400	Association shall have a claim against, and recourse to, the
1401	account referred to in sub-sub-subparagraph a.(III) and shall
1402	have no claim against, or recourse to, the accounts referred to
1403	in sub-sub-subparagraphs a.(I) and (II).
1404	d.  Revenues, assets, liabilities, losses, and expenses not
1405	attributable to particular accounts shall be prorated among the
1406	accounts.
1407	e.  The Legislature finds that the revenues of the
1408	corporation are revenues that are necessary to meet the
1409	requirements set forth in documents authorizing the issuance of
1410	bonds under this subsection.
1411	f.  No part of the income of the corporation may inure to
1412	the benefit of any private person.
1413	3.  With respect to a deficit in an account:
1414	a.  After accounting for the Citizens policyholder
1415	surcharge imposed under sub-subparagraph i., when the remaining
1416	projected deficit incurred in a particular calendar year is not
1417	greater than 6 percent of the aggregate statewide direct written
1418	premium for the subject lines of business for the prior calendar
1419	year, the entire deficit shall be recovered through regular
1420	assessments of assessable insurers under paragraph (p) and
1421	assessable insureds.
1422	b.  After accounting for the Citizens policyholder
1423	surcharge imposed under sub-subparagraph i., when the remaining
1424	projected deficit incurred in a particular calendar year exceeds
1425	6 percent of the aggregate statewide direct written premium for
1426	the subject lines of business for the prior calendar year, the
1427	corporation shall levy regular assessments on assessable
1428	insurers under paragraph (p) and on assessable insureds in an
1429	amount equal to the greater of 6 percent of the deficit or 6
1430	percent of the aggregate statewide direct written premium for
1431	the subject lines of business for the prior calendar year. Any
1432	remaining deficit shall be recovered through emergency
1433	assessments under sub-subparagraph d.
1434	c.  Each assessable insurer's share of the amount being
1435	assessed under sub-subparagraph a. or sub-subparagraph b. shall
1436	be in the proportion that the assessable insurer's direct
1437	written premium for the subject lines of business for the year
1438	preceding the assessment bears to the aggregate statewide direct
1439	written premium for the subject lines of business for that year.
1440	The assessment percentage applicable to each assessable insured
1441	is the ratio of the amount being assessed under sub-subparagraph
1442	a. or sub-subparagraph b. to the aggregate statewide direct
1443	written premium for the subject lines of business for the prior
1444	year. Assessments levied by the corporation on assessable
1445	insurers under sub-subparagraphs a. and b. shall be paid as
1446	required by the corporation's plan of operation and paragraph
1447	(p). Assessments levied by the corporation on assessable
1448	insureds under sub-subparagraphs a. and b. shall be collected by
1449	the surplus lines agent at the time the surplus lines agent
1450	collects the surplus lines tax required by s. 626.932 and shall
1451	be paid to the Florida Surplus Lines Service Office at the time
1452	the surplus lines agent pays the surplus lines tax to the
1453	Florida Surplus Lines Service Office. Upon receipt of regular
1454	assessments from surplus lines agents, the Florida Surplus Lines
1455	Service Office shall transfer the assessments directly to the
1456	corporation as determined by the corporation.
1457	d.  Upon a determination by the board of governors that a
1458	deficit in an account exceeds the amount that will be recovered
1459	through regular assessments under sub-subparagraph a. or sub-
1460	subparagraph b., plus the amount that is expected to be
1461	recovered through surcharges under sub-subparagraph i., as to
1462	the remaining projected deficit the board shall levy, after
1463	verification by the office, emergency assessments, for as many
1464	years as necessary to cover the deficits, to be collected by
1465	assessable insurers and the corporation and collected from
1466	assessable insureds upon issuance or renewal of policies for
1467	subject lines of business, excluding National Flood Insurance
1468	policies. The amount of the emergency assessment collected in a
1469	particular year shall be a uniform percentage of that year's
1470	direct written premium for subject lines of business and all
1471	accounts of the corporation, excluding National Flood Insurance
1472	Program policy premiums, as annually determined by the board and
1473	verified by the office. The office shall verify the arithmetic
1474	calculations involved in the board's determination within 30
1475	days after receipt of the information on which the determination
1476	was based. Notwithstanding any other provision of law, the
1477	corporation and each assessable insurer that writes subject
1478	lines of business shall collect emergency assessments from its
1479	policyholders without such obligation being affected by any
1480	credit, limitation, exemption, or deferment. Emergency
1481	assessments levied by the corporation on assessable insureds
1482	shall be collected by the surplus lines agent at the time the
1483	surplus lines agent collects the surplus lines tax required by
1484	s. 626.932 and shall be paid to the Florida Surplus Lines
1485	Service Office at the time the surplus lines agent pays the
1486	surplus lines tax to the Florida Surplus Lines Service Office.
1487	The emergency assessments so collected shall be transferred
1488	directly to the corporation on a periodic basis as determined by
1489	the corporation and shall be held by the corporation solely in
1490	the applicable account. The aggregate amount of emergency
1491	assessments levied for an account under this sub-subparagraph in
1492	any calendar year may, at the discretion of the board of
1493	governors, be less than but may not exceed the greater of 10
1494	percent of the amount needed to cover the deficit, plus
1495	interest, fees, commissions, required reserves, and other costs
1496	associated with financing of the original deficit, or 10 percent
1497	of the aggregate statewide direct written premium for subject
1498	lines of business and for all accounts of the corporation for
1499	the prior year, plus interest, fees, commissions, required
1500	reserves, and other costs associated with financing the deficit.
1501	e.  The corporation may pledge the proceeds of assessments,
1502	projected recoveries from the Florida Hurricane Catastrophe
1503	Fund, other insurance and reinsurance recoverables, policyholder
1504	surcharges and other surcharges, and other funds available to
1505	the corporation as the source of revenue for and to secure bonds
1506	issued under paragraph (p), bonds or other indebtedness issued
1507	under subparagraph (c)3., or lines of credit or other financing
1508	mechanisms issued or created under this subsection, or to retire
1509	any other debt incurred as a result of deficits or events giving
1510	rise to deficits, or in any other way that the board determines
1511	will efficiently recover such deficits. The purpose of the lines
1512	of credit or other financing mechanisms is to provide additional
1513	resources to assist the corporation in covering claims and
1514	expenses attributable to a catastrophe. As used in this
1515	subsection, the term "assessments" includes regular assessments
1516	under sub-subparagraph a., sub-subparagraph b., or subparagraph
1517	(p)1. and emergency assessments under sub-subparagraph d.
1518	Emergency assessments collected under sub-subparagraph d. are
1519	not part of an insurer's rates, are not premium, and are not
1520	subject to premium tax, fees, or commissions; however, failure
1521	to pay the emergency assessment shall be treated as failure to
1522	pay premium. The emergency assessments under sub-subparagraph d.
1523	shall continue as long as any bonds issued or other indebtedness
1524	incurred with respect to a deficit for which the assessment was
1525	imposed remain outstanding, unless adequate provision has been
1526	made for the payment of such bonds or other indebtedness
1527	pursuant to the documents governing such bonds or other
1528	indebtedness.
1529	f.  As used in this subsection for purposes of any deficit
1530	incurred on or after January 25, 2007, the term "subject lines
1531	of business" means insurance written by assessable insurers or
1532	procured by assessable insureds for all property and casualty
1533	lines of business in this state, but not including workers'
1534	compensation or medical malpractice. As used in the sub-
1535	subparagraph, the term "property and casualty lines of business"
1536	includes all lines of business identified on Form 2, Exhibit of
1537	Premiums and Losses, in the annual statement required of
1538	authorized insurers by s. 624.424 and any rule adopted under
1539	this section, except for those lines identified as accident and
1540	health insurance and except for policies written under the
1541	National Flood Insurance Program or the Federal Crop Insurance
1542	Program. For purposes of this sub-subparagraph, the term
1543	"workers' compensation" includes both workers' compensation
1544	insurance and excess workers' compensation insurance.
1545	g.  The Florida Surplus Lines Service Office shall
1546	determine annually the aggregate statewide written premium in
1547	subject lines of business procured by assessable insureds and
1548	shall report that information to the corporation in a form and
1549	at a time the corporation specifies to ensure that the
1550	corporation can meet the requirements of this subsection and the
1551	corporation's financing obligations.
1552	h.  The Florida Surplus Lines Service Office shall verify
1553	the proper application by surplus lines agents of assessment
1554	percentages for regular assessments and emergency assessments
1555	levied under this subparagraph on assessable insureds and shall
1556	assist the corporation in ensuring the accurate, timely
1557	collection and payment of assessments by surplus lines agents as
1558	required by the corporation.
1559	i.  If a deficit is incurred in any account in 2008 or
1560	thereafter, the board of governors shall levy a Citizens
1561	policyholder surcharge against all policyholders of the
1562	corporation for a 12-month period, which shall be collected at
1563	the time of issuance or renewal of a policy, as a uniform
1564	percentage of the premium for the policy of up to 25 15 percent
1565	of such premium, which funds shall be used to offset the
1566	deficit. Citizens policyholder surcharges under this sub-
1567	subparagraph are not considered premium and are not subject to
1568	commissions, fees, or premium taxes. However, failure to pay
1569	such surcharges shall be treated as failure to pay premium.
1570	j.  If the amount of any assessments or surcharges
1571	collected from corporation policyholders, assessable insurers or
1572	their policyholders, or assessable insureds exceeds the amount
1573	of the deficits, such excess amounts shall be remitted to and
1574	retained by the corporation in a reserve to be used by the
1575	corporation, as determined by the board of governors and
1576	approved by the office, to pay claims or reduce any past,
1577	present, or future plan-year deficits or to reduce outstanding
1578	debt.
1579	(c)  The plan of operation of the corporation:
1580	1.  Must provide for adoption of residential property and
1581	casualty insurance policy forms and commercial residential and
1582	nonresidential property insurance forms, which forms must be
1583	approved by the office prior to use. The corporation shall adopt
1584	the following policy forms:
1585	a.  Standard personal lines policy forms that are
1586	comprehensive multiperil policies providing full coverage of a
1587	residential property equivalent to the coverage provided in the
1588	private insurance market under an HO-3, HO-4, or HO-6 policy.
1589	b.  Basic personal lines policy forms that are policies
1590	similar to an HO-8 policy or a dwelling fire policy that provide
1591	coverage meeting the requirements of the secondary mortgage
1592	market, but which coverage is more limited than the coverage
1593	under a standard policy.
1594	c.  Commercial lines residential and nonresidential policy
1595	forms that are generally similar to the basic perils of full
1596	coverage obtainable for commercial residential structures and
1597	commercial nonresidential structures in the admitted voluntary
1598	market.
1599	d.  Personal lines and commercial lines residential
1600	property insurance forms that cover the peril of wind only. The
1601	forms are applicable only to residential properties located in
1602	areas eligible for coverage under the high-risk account referred
1603	to in sub-subparagraph (b)2.a.
1604	e.  Commercial lines nonresidential property insurance
1605	forms that cover the peril of wind only. The forms are
1606	applicable only to nonresidential properties located in areas
1607	eligible for coverage under the high-risk account referred to in
1608	sub-subparagraph (b)2.a.
1609	f.  The corporation may adopt variations of the policy
1610	forms listed in sub-subparagraphs a.-e. that contain more
1611	restrictive coverage.
1612	2.a.  Must provide that the corporation adopt a program in
1613	which the corporation and authorized insurers enter into quota
1614	share primary insurance agreements for hurricane coverage, as
1615	defined in s. 627.4025(2)(a), for eligible risks, and adopt
1616	property insurance forms for eligible risks which cover the
1617	peril of wind only. As used in this subsection, the term:
1618	(I)  "Quota share primary insurance" means an arrangement
1619	in which the primary hurricane coverage of an eligible risk is
1620	provided in specified percentages by the corporation and an
1621	authorized insurer. The corporation and authorized insurer are
1622	each solely responsible for a specified percentage of hurricane
1623	coverage of an eligible risk as set forth in a quota share
1624	primary insurance agreement between the corporation and an
1625	authorized insurer and the insurance contract. The
1626	responsibility of the corporation or authorized insurer to pay
1627	its specified percentage of hurricane losses of an eligible
1628	risk, as set forth in the quota share primary insurance
1629	agreement, may not be altered by the inability of the other
1630	party to the agreement to pay its specified percentage of
1631	hurricane losses. Eligible risks that are provided hurricane
1632	coverage through a quota share primary insurance arrangement
1633	must be provided policy forms that set forth the obligations of
1634	the corporation and authorized insurer under the arrangement,
1635	clearly specify the percentages of quota share primary insurance
1636	provided by the corporation and authorized insurer, and
1637	conspicuously and clearly state that neither the authorized
1638	insurer nor the corporation may be held responsible beyond its
1639	specified percentage of coverage of hurricane losses.
1640	(II)  "Eligible risks" means personal lines residential and
1641	commercial lines residential risks that meet the underwriting
1642	criteria of the corporation and are located in areas that were
1643	eligible for coverage by the Florida Windstorm Underwriting
1644	Association on January 1, 2002.
1645	b.  The corporation may enter into quota share primary
1646	insurance agreements with authorized insurers at corporation
1647	coverage levels of 90 percent and 50 percent.
1648	c.  If the corporation determines that additional coverage
1649	levels are necessary to maximize participation in quota share
1650	primary insurance agreements by authorized insurers, the
1651	corporation may establish additional coverage levels. However,
1652	the corporation's quota share primary insurance coverage level
1653	may not exceed 90 percent.
1654	d.  Any quota share primary insurance agreement entered
1655	into between an authorized insurer and the corporation must
1656	provide for a uniform specified percentage of coverage of
1657	hurricane losses, by county or territory as set forth by the
1658	corporation board, for all eligible risks of the authorized
1659	insurer covered under the quota share primary insurance
1660	agreement.
1661	e.  Any quota share primary insurance agreement entered
1662	into between an authorized insurer and the corporation is
1663	subject to review and approval by the office. However, such
1664	agreement shall be authorized only as to insurance contracts
1665	entered into between an authorized insurer and an insured who is
1666	already insured by the corporation for wind coverage.
1667	f.  For all eligible risks covered under quota share
1668	primary insurance agreements, the exposure and coverage levels
1669	for both the corporation and authorized insurers shall be
1670	reported by the corporation to the Florida Hurricane Catastrophe
1671	Fund. For all policies of eligible risks covered under quota
1672	share primary insurance agreements, the corporation and the
1673	authorized insurer shall maintain complete and accurate records
1674	for the purpose of exposure and loss reimbursement audits as
1675	required by Florida Hurricane Catastrophe Fund rules. The
1676	corporation and the authorized insurer shall each maintain
1677	duplicate copies of policy declaration pages and supporting
1678	claims documents.
1679	g.  The corporation board shall establish in its plan of
1680	operation standards for quota share agreements which ensure that
1681	there is no discriminatory application among insurers as to the
1682	terms of quota share agreements, pricing of quota share
1683	agreements, incentive provisions if any, and consideration paid
1684	for servicing policies or adjusting claims.
1685	h.  The quota share primary insurance agreement between the
1686	corporation and an authorized insurer must set forth the
1687	specific terms under which coverage is provided, including, but
1688	not limited to, the sale and servicing of policies issued under
1689	the agreement by the insurance agent of the authorized insurer
1690	producing the business, the reporting of information concerning
1691	eligible risks, the payment of premium to the corporation, and
1692	arrangements for the adjustment and payment of hurricane claims
1693	incurred on eligible risks by the claims adjuster and personnel
1694	of the authorized insurer. Entering into a quota sharing
1695	insurance agreement between the corporation and an authorized
1696	insurer shall be voluntary and at the discretion of the
1697	authorized insurer.
1698	3.  May provide that the corporation may employ or
1699	otherwise contract with individuals or other entities to provide
1700	administrative or professional services that may be appropriate
1701	to effectuate the plan. The corporation shall have the power to
1702	borrow funds, by issuing bonds or by incurring other
1703	indebtedness, and shall have other powers reasonably necessary
1704	to effectuate the requirements of this subsection, including,
1705	without limitation, the power to issue bonds and incur other
1706	indebtedness in order to refinance outstanding bonds or other
1707	indebtedness. The corporation may, but is not required to, seek
1708	judicial validation of its bonds or other indebtedness under
1709	chapter 75. The corporation may issue bonds or incur other
1710	indebtedness, or have bonds issued on its behalf by a unit of
1711	local government pursuant to subparagraph (p)2., in the absence
1712	of a hurricane or other weather-related event, upon a
1713	determination by the corporation, subject to approval by the
1714	office, that such action would enable it to efficiently meet the
1715	financial obligations of the corporation and that such
1716	financings are reasonably necessary to effectuate the
1717	requirements of this subsection. The corporation is authorized
1718	to take all actions needed to facilitate tax-free status for any
1719	such bonds or indebtedness, including formation of trusts or
1720	other affiliated entities. The corporation shall have the
1721	authority to pledge assessments, projected recoveries from the
1722	Florida Hurricane Catastrophe Fund, other reinsurance
1723	recoverables, market equalization and other surcharges, and
1724	other funds available to the corporation as security for bonds
1725	or other indebtedness. In recognition of s. 10, Art. I of the
1726	State Constitution, prohibiting the impairment of obligations of
1727	contracts, it is the intent of the Legislature that no action be
1728	taken whose purpose is to impair any bond indenture or financing
1729	agreement or any revenue source committed by contract to such
1730	bond or other indebtedness.
1731	4.a.  Must require that the corporation operate subject to
1732	the supervision and approval of a board of governors consisting
1733	of eight individuals who are residents of this state, from
1734	different geographical areas of this state. The Governor, the
1735	Chief Financial Officer, the President of the Senate, and the
1736	Speaker of the House of Representatives shall each appoint two
1737	members of the board. At least one of the two members appointed
1738	by each appointing officer must have demonstrated expertise in
1739	insurance. The Chief Financial Officer shall designate one of
1740	the appointees as chair. All board members serve at the pleasure
1741	of the appointing officer. All members of the board of governors
1742	are subject to removal at will by the officers who appointed
1743	them. Except as otherwise provided, all board members, including
1744	the chair, must be appointed to serve for 3-year terms beginning
1745	annually on a date designated by the plan. However, for the
1746	first term beginning on or after July 1, 2009, each appointing
1747	officer shall appoint one member of the board for a 2-year term
1748	and one member for a 3-year term. Any board vacancy shall be
1749	filled for the unexpired term by the appointing officer. The
1750	Chief Financial Officer shall appoint a technical advisory group
1751	to provide information and advice to the board of governors in
1752	connection with the board's duties under this subsection. The
1753	executive director and senior managers of the corporation shall
1754	be engaged by the board and serve at the pleasure of the board.
1755	Any executive director appointed on or after July 1, 2006, is
1756	subject to confirmation by the Senate. The executive director is
1757	responsible for employing other staff as the corporation may
1758	require, subject to review and concurrence by the board.
1759	b.  The board shall create a Market Accountability Advisory
1760	Committee to assist the corporation in developing awareness of
1761	its rates and its customer and agent service levels in
1762	relationship to the voluntary market insurers writing similar
1763	coverage. The members of the advisory committee shall consist of
1764	the following 11 persons, one of whom must be elected chair by
1765	the members of the committee: four representatives, one
1766	appointed by the Florida Association of Insurance Agents, one by
1767	the Florida Association of Insurance and Financial Advisors, one
1768	by the Professional Insurance Agents of Florida, and one by the
1769	Latin American Association of Insurance Agencies; three
1770	representatives appointed by the insurers with the three highest
1771	voluntary market share of residential property insurance
1772	business in the state; one representative from the Office of
1773	Insurance Regulation; one consumer appointed by the board who is
1774	insured by the corporation at the time of appointment to the
1775	committee; one representative appointed by the Florida
1776	Association of Realtors; and one representative appointed by the
1777	Florida Bankers Association. All members must serve for 3-year
1778	terms and may serve for consecutive terms. The committee shall
1779	report to the corporation at each board meeting on insurance
1780	market issues which may include rates and rate competition with
1781	the voluntary market; service, including policy issuance, claims
1782	processing, and general responsiveness to policyholders,
1783	applicants, and agents; and matters relating to depopulation.
1784	5.  Must provide a procedure for determining the
1785	eligibility of a risk for coverage, as follows:
1786	a.  Subject to the provisions of s. 627.3517, with respect
1787	to personal lines residential risks, if the risk is offered
1788	coverage from an authorized insurer at the insurer's approved
1789	rate under either a standard policy including wind coverage or,
1790	if consistent with the insurer's underwriting rules as filed
1791	with the office, a basic policy including wind coverage, for a
1792	new application to the corporation for coverage, the risk is not
1793	eligible for any policy issued by the corporation unless the
1794	premium for coverage from the authorized insurer is more than 15
1795	percent greater than the premium for comparable coverage from
1796	the corporation. If the risk is not able to obtain any such
1797	offer, the risk is eligible for either a standard policy
1798	including wind coverage or a basic policy including wind
1799	coverage issued by the corporation; however, if the risk could
1800	not be insured under a standard policy including wind coverage
1801	regardless of market conditions, the risk shall be eligible for
1802	a basic policy including wind coverage unless rejected under
1803	subparagraph 8. However, with regard to a policyholder of the
1804	corporation or a policyholder removed from the corporation
1805	through an assumption agreement until the end of the assumption
1806	period, the policyholder remains eligible for coverage from the
1807	corporation regardless of any offer of coverage from an
1808	authorized insurer or surplus lines insurer. The corporation
1809	shall determine the type of policy to be provided on the basis
1810	of objective standards specified in the underwriting manual and
1811	based on generally accepted underwriting practices.
1812	(I)  If the risk accepts an offer of coverage through the
1813	market assistance plan or an offer of coverage through a
1814	mechanism established by the corporation before a policy is
1815	issued to the risk by the corporation or during the first 30
1816	days of coverage by the corporation, and the producing agent who
1817	submitted the application to the plan or to the corporation is
1818	not currently appointed by the insurer, the insurer shall:
1819	(A)  Pay to the producing agent of record of the policy,
1820	for the first year, an amount that is the greater of the
1821	insurer's usual and customary commission for the type of policy
1822	written or a fee equal to the usual and customary commission of
1823	the corporation; or
1824	(B)  Offer to allow the producing agent of record of the
1825	policy to continue servicing the policy for a period of not less
1826	than 1 year and offer to pay the agent the greater of the
1827	insurer's or the corporation's usual and customary commission
1828	for the type of policy written.
1829
1830	If the producing agent is unwilling or unable to accept
1831	appointment, the new insurer shall pay the agent in accordance
1832	with sub-sub-sub-subparagraph (A).
1833	(II)  When the corporation enters into a contractual
1834	agreement for a take-out plan, the producing agent of record of
1835	the corporation policy is entitled to retain any unearned
1836	commission on the policy, and the insurer shall:
1837	(A)  Pay to the producing agent of record of the
1838	corporation policy, for the first year, an amount that is the
1839	greater of the insurer's usual and customary commission for the
1840	type of policy written or a fee equal to the usual and customary
1841	commission of the corporation; or
1842	(B)  Offer to allow the producing agent of record of the
1843	corporation policy to continue servicing the policy for a period
1844	of not less than 1 year and offer to pay the agent the greater
1845	of the insurer's or the corporation's usual and customary
1846	commission for the type of policy written.
1847
1848	If the producing agent is unwilling or unable to accept
1849	appointment, the new insurer shall pay the agent in accordance
1850	with sub-sub-sub-subparagraph (A).
1851	b.  With respect to commercial lines residential risks, for
1852	a new application to the corporation for coverage, if the risk
1853	is offered coverage under a policy including wind coverage from
1854	an authorized insurer at its approved rate, the risk is not
1855	eligible for any policy issued by the corporation unless the
1856	premium for coverage from the authorized insurer is more than 15
1857	percent greater than the premium for comparable coverage from
1858	the corporation. If the risk is not able to obtain any such
1859	offer, the risk is eligible for a policy including wind coverage
1860	issued by the corporation. However, with regard to a
1861	policyholder of the corporation or a policyholder removed from
1862	the corporation through an assumption agreement until the end of
1863	the assumption period, the policyholder remains eligible for
1864	coverage from the corporation regardless of any offer of
1865	coverage from an authorized insurer or surplus lines insurer.
1866	(I)  If the risk accepts an offer of coverage through the
1867	market assistance plan or an offer of coverage through a
1868	mechanism established by the corporation before a policy is
1869	issued to the risk by the corporation or during the first 30
1870	days of coverage by the corporation, and the producing agent who
1871	submitted the application to the plan or the corporation is not
1872	currently appointed by the insurer, the insurer shall:
1873	(A)  Pay to the producing agent of record of the policy,
1874	for the first year, an amount that is the greater of the
1875	insurer's usual and customary commission for the type of policy
1876	written or a fee equal to the usual and customary commission of
1877	the corporation; or
1878	(B)  Offer to allow the producing agent of record of the
1879	policy to continue servicing the policy for a period of not less
1880	than 1 year and offer to pay the agent the greater of the
1881	insurer's or the corporation's usual and customary commission
1882	for the type of policy written.
1883
1884	If the producing agent is unwilling or unable to accept
1885	appointment, the new insurer shall pay the agent in accordance
1886	with sub-sub-sub-subparagraph (A).
1887	(II)  When the corporation enters into a contractual
1888	agreement for a take-out plan, the producing agent of record of
1889	the corporation policy is entitled to retain any unearned
1890	commission on the policy, and the insurer shall:
1891	(A)  Pay to the producing agent of record of the
1892	corporation policy, for the first year, an amount that is the
1893	greater of the insurer's usual and customary commission for the
1894	type of policy written or a fee equal to the usual and customary
1895	commission of the corporation; or
1896	(B)  Offer to allow the producing agent of record of the
1897	corporation policy to continue servicing the policy for a period
1898	of not less than 1 year and offer to pay the agent the greater
1899	of the insurer's or the corporation's usual and customary
1900	commission for the type of policy written.
1901
1902	If the producing agent is unwilling or unable to accept
1903	appointment, the new insurer shall pay the agent in accordance
1904	with sub-sub-sub-subparagraph (A).
1905	c.  For purposes of determining comparable coverage under
1906	sub-subparagraphs a. and b., the comparison shall be based on
1907	those forms and coverages that are reasonably comparable. The
1908	corporation may rely on a determination of comparable coverage
1909	and premium made by the producing agent who submits the
1910	application to the corporation, made in the agent's capacity as
1911	the corporation's agent. A comparison may be made solely of the
1912	premium with respect to the main building or structure only on
1913	the following basis: the same coverage A or other building
1914	limits; the same percentage hurricane deductible that applies on
1915	an annual basis or that applies to each hurricane for commercial
1916	residential property; the same percentage of ordinance and law
1917	coverage, if the same limit is offered by both the corporation
1918	and the authorized insurer; the same mitigation credits, to the
1919	extent the same types of credits are offered both by the
1920	corporation and the authorized insurer; the same method for loss
1921	payment, such as replacement cost or actual cash value, if the
1922	same method is offered both by the corporation and the
1923	authorized insurer in accordance with underwriting rules; and
1924	any other form or coverage that is reasonably comparable as
1925	determined by the board. If an application is submitted to the
1926	corporation for wind-only coverage in the high-risk account, the
1927	premium for the corporation's wind-only policy plus the premium
1928	for the ex-wind policy that is offered by an authorized insurer
1929	to the applicant shall be compared to the premium for multiperil
1930	coverage offered by an authorized insurer, subject to the
1931	standards for comparison specified in this subparagraph. If the
1932	corporation or the applicant requests from the authorized
1933	insurer a breakdown of the premium of the offer by types of
1934	coverage so that a comparison may be made by the corporation or
1935	its agent and the authorized insurer refuses or is unable to
1936	provide such information, the corporation may treat the offer as
1937	not being an offer of coverage from an authorized insurer at the
1938	insurer's approved rate.
1939	6.  Must include rules for classifications of risks and
1940	rates therefor.
1941	7.  Must provide that if premium and investment income for
1942	an account attributable to a particular calendar year are in
1943	excess of projected losses and expenses for the account
1944	attributable to that year, such excess shall be held in surplus
1945	in the account. Such surplus shall be available to defray
1946	deficits in that account as to future years and shall be used
1947	for that purpose prior to assessing assessable insurers and
1948	assessable insureds as to any calendar year.
1949	8.  Must provide objective criteria and procedures to be
1950	uniformly applied for all applicants in determining whether an
1951	individual risk is so hazardous as to be uninsurable. In making
1952	this determination and in establishing the criteria and
1953	procedures, the following shall be considered:
1954	a.  Whether the likelihood of a loss for the individual
1955	risk is substantially higher than for other risks of the same
1956	class; and
1957	b.  Whether the uncertainty associated with the individual
1958	risk is such that an appropriate premium cannot be determined.
1959
1960	The acceptance or rejection of a risk by the corporation shall
1961	be construed as the private placement of insurance, and the
1962	provisions of chapter 120 shall not apply.
1963	9.  Must provide that the corporation shall make its best
1964	efforts to procure catastrophe reinsurance at reasonable rates,
1965	to cover its projected 100-year probable maximum loss as
1966	determined by the board of governors.
1967	10.  The policies issued by the corporation must provide
1968	that, if the corporation or the market assistance plan obtains
1969	an offer from an authorized insurer to cover the risk at its
1970	approved rates, the risk is no longer eligible for renewal
1971	through the corporation, except as otherwise provided in this
1972	subsection.
1973	11.  Corporation policies and applications must include a
1974	notice that the corporation policy could, under this section, be
1975	replaced with a policy issued by an authorized insurer that does
1976	not provide coverage identical to the coverage provided by the
1977	corporation. The notice shall also specify that acceptance of
1978	corporation coverage creates a conclusive presumption that the
1979	applicant or policyholder is aware of this potential.
1980	12.  May establish, subject to approval by the office,
1981	different eligibility requirements and operational procedures
1982	for any line or type of coverage for any specified county or
1983	area if the board determines that such changes to the
1984	eligibility requirements and operational procedures are
1985	justified due to the voluntary market being sufficiently stable
1986	and competitive in such area or for such line or type of
1987	coverage and that consumers who, in good faith, are unable to
1988	obtain insurance through the voluntary market through ordinary
1989	methods would continue to have access to coverage from the
1990	corporation. When coverage is sought in connection with a real
1991	property transfer, such requirements and procedures shall not
1992	provide for an effective date of coverage later than the date of
1993	the closing of the transfer as established by the transferor,
1994	the transferee, and, if applicable, the lender.
1995	13.  Must provide that, with respect to the high-risk
1996	account, any assessable insurer with a surplus as to
1997	policyholders of $25 million or less writing 25 percent or more
1998	of its total countrywide property insurance premiums in this
1999	state may petition the office, within the first 90 days of each
2000	calendar year, to qualify as a limited apportionment company. A
2001	regular assessment levied by the corporation on a limited
2002	apportionment company for a deficit incurred by the corporation
2003	for the high-risk account in 2006 or thereafter may be paid to
2004	the corporation on a monthly basis as the assessments are
2005	collected by the limited apportionment company from its insureds
2006	pursuant to s. 627.3512, but the regular assessment must be paid
2007	in full within 12 months after being levied by the corporation.
2008	A limited apportionment company shall collect from its
2009	policyholders any emergency assessment imposed under sub-
2010	subparagraph (b)3.d. The plan shall provide that, if the office
2011	determines that any regular assessment will result in an
2012	impairment of the surplus of a limited apportionment company,
2013	the office may direct that all or part of such assessment be
2014	deferred as provided in subparagraph (p)4. However, there shall
2015	be no limitation or deferment of an emergency assessment to be
2016	collected from policyholders under sub-subparagraph (b)3.d.
2017	14.  Must provide that the corporation appoint as its
2018	licensed agents only those agents who also hold an appointment
2019	as defined in s. 626.015(3) with an insurer who at the time of
2020	the agent's initial appointment by the corporation is authorized
2021	to write and is actually writing personal lines residential
2022	property coverage, commercial residential property coverage, or
2023	commercial nonresidential property coverage within the state.
2024	15.  Must provide, by July 1, 2007, a premium payment plan
2025	option to its policyholders which allows at a minimum for
2026	quarterly and semiannual payment of premiums. A monthly payment
2027	plan may, but is not required to, be offered.
2028	16.  Must limit coverage on mobile homes or manufactured
2029	homes built prior to 1994 to actual cash value of the dwelling
2030	rather than replacement costs of the dwelling.
2031	17.  May provide such limits of coverage as the board
2032	determines, consistent with the requirements of this subsection.
2033	18.  May require commercial property to meet specified
2034	hurricane mitigation construction features as a condition of
2035	eligibility for coverage.
2036	(m)1.  Rates for coverage provided by the corporation shall
2037	be actuarially sound and subject to the requirements of s.
2038	627.062, except as otherwise provided in this paragraph. The
2039	corporation shall file its recommended rates with the office at
2040	least annually. The corporation shall provide any additional
2041	information regarding the rates which the office requires. The
2042	office shall consider the recommendations of the board and issue
2043	a final order establishing the rates for the corporation within
2044	45 days after the recommended rates are filed. The corporation
2045	may not pursue an administrative challenge or judicial review of
2046	the final order of the office.
2047	2.  In addition to the rates otherwise determined pursuant
2048	to this paragraph, the corporation shall impose and collect an
2049	amount equal to the premium tax provided for in s. 624.509 to
2050	augment the financial resources of the corporation.
2051	3.  After the public hurricane loss-projection model under
2052	s. 627.06281 has been found to be accurate and reliable by the
2053	Florida Commission on Hurricane Loss Projection Methodology,
2054	that model shall serve as the minimum benchmark for determining
2055	the windstorm portion of the corporation's rates. This
2056	subparagraph does not require or allow the corporation to adopt
2057	rates lower than the rates otherwise required or allowed by this
2058	paragraph.
2059	4.  The rate filings for the corporation which were
2060	approved by the office and which took effect January 1, 2007,
2061	are rescinded, except for those rates that were lowered. As soon
2062	as possible, the corporation shall begin using the lower rates
2063	that were in effect on December 31, 2006, and shall provide
2064	refunds to policyholders who have paid higher rates as a result
2065	of that rate filing. The rates in effect on December 31, 2006,
2066	shall remain in effect for the 2007 and 2008 calendar years
2067	except for any rate change that results in a lower rate. The
2068	next rate change that may increase rates shall take effect
2069	pursuant to a new rate filing recommended by the corporation and
2070	established by the office, subject to the requirements of this
2071	paragraph.
2072	5.  Beginning on July 15, 2009, and each year thereafter,
2073	the corporation must make a recommended actuarially sound rate
2074	filing for each personal and commercial line of business it
2075	writes, to be effective no earlier than January 1, 2010.
2076	6.  The Legislature finds that it is in the public interest
2077	to ensure that actuarially sound rates for coverage by the
2078	corporation be implemented incrementally to provide rate
2079	stability and predictability to its policyholders.
2080	7.  Beginning on or after January 1, 2010, the corporation
2081	shall begin to implement actuarially sound rates for each
2082	commercial and personal line of business it writes, which may
2083	not exceed an average statewide increase of 10 percent or exceed
2084	20 percent for any single policy issued by the corporation,
2085	excluding coverage changes and surcharges.
2086	8.  The corporation's incremental implementation of rates
2087	as prescribed in subparagraph 7. shall cease for any line of
2088	business written by the corporation after actuarially sound
2089	rates as prescribed in subparagraph 1. are achieved. Thereafter,
2090	the corporation shall annually make a recommended actuarially
2091	sound rate filing for each commercial and personal line of
2092	business it writes.
2093	9.  In addition to the rate increase required pursuant to
2094	subparagraph 7., the corporation may increase its rates an
2095	amount sufficient to recoup additional reimbursement premium
2096	paid to the Florida Hurricane Catastrophe Fund due to the
2097	application of a cash build-up factor.
2098	10.  Beginning April 1, 2010, and each quarter thereafter,
2099	the corporation shall transfer 10 percent of the funds received
2100	from the rate increase prescribed by subparagraph 7. to the
2101	General Revenue Fund. The corporation's transfer of such funds
2102	shall cease upon the corporation's implementation of actuarially
2103	sound rates as prescribed in subparagraph 1.
2104	(x)  It is the intent of the Legislature that the
2105	amendments to this subsection enacted in 2002 should, over time,
2106	reduce the probable maximum windstorm losses in the residual
2107	markets and should reduce the potential assessments to be levied
2108	on property insurers and policyholders statewide. In furtherance
2109	of this intent:
2110	1.  The board shall, on or before February 1 of each year,
2111	provide a report to the President of the Senate and the Speaker
2112	of the House of Representatives showing the reduction or
2113	increase in the 100-year probable maximum loss attributable to
2114	wind-only coverages and the quota share program under this
2115	subsection combined, as compared to the benchmark 100-year
2116	probable maximum loss of the Florida Windstorm Underwriting
2117	Association. For purposes of this paragraph, the benchmark 100-
2118	year probable maximum loss of the Florida Windstorm Underwriting
2119	Association shall be the calculation dated February 2001 and
2120	based on November 30, 2000, exposures. In order to ensure
2121	comparability of data, the board shall use the same methods for
2122	calculating its probable maximum loss as were used to calculate
2123	the benchmark probable maximum loss.
2124	2.  Beginning February 1, 2010, if the report under
2125	subparagraph 1. for any year indicates that the 100-year
2126	probable maximum loss attributable to wind-only coverages and
2127	the quota share program combined does not reflect a reduction of
2128	at least 25 percent from the benchmark, the board shall reduce
2129	the boundaries of the high-risk area eligible for wind-only
2130	coverages under this subsection in a manner calculated to reduce
2131	such probable maximum loss to an amount at least 25 percent
2132	below the benchmark.
2133	3.  Beginning February 1, 2015, if the report under
2134	subparagraph 1. for any year indicates that the 100-year
2135	probable maximum loss attributable to wind-only coverages and
2136	the quota share program combined does not reflect a reduction of
2137	at least 50 percent from the benchmark, the boundaries of the
2138	high-risk area eligible for wind-only coverages under this
2139	subsection shall be reduced by the elimination of any area that
2140	is not seaward of a line 1,000 feet inland from the Intracoastal
2141	Waterway.
2142	Section 12.  Subsection (2) of section 627.711, Florida
2143	Statutes, is amended, and subsection (3) is added to that
2144	section, to read:
2145	627.711  Notice of premium discounts for hurricane loss
2146	mitigation; uniform mitigation verification inspection form.--
2147	(2)(a)  By July 1, 2007, the Financial Services Commission
2148	shall develop by rule a uniform mitigation verification
2149	inspection form that shall be used by all insurers when
2150	submitted by policyholders for the purpose of factoring
2151	discounts for wind insurance. In developing the form, the
2152	commission shall seek input from insurance, construction, and
2153	building code representatives. Further, the commission shall
2154	provide guidance as to the length of time the inspection results
2155	are valid. An insurer shall accept as valid a uniform mitigation
2156	verification form certified by the Department of Financial
2157	Services or signed by:
2158	(a)  A hurricane mitigation inspector employed by an
2159	approved My Safe Florida Home wind certification entity;
2160	1.(b)  A building code inspector certified under s.
2161	468.607;
2162	2.(c)  A general, building, or residential contractor
2163	licensed under s. 489.111;
2164	3.(d)  A professional engineer licensed under s. 471.015
2165	who has passed the appropriate equivalency test of the Building
2166	Code Training Program as required by s. 553.841; or
2167	4.(e)  A professional architect licensed under s. 481.213.
2168	(b)  An insurer may contract with inspection firms at the
2169	insurer's expense to review mitigation verification forms and to
2170	reinspect properties for which the insurer receives mitigation
2171	verification forms to ensure that the forms are valid.
2172	(3)  An individual or entity who knowingly provides or
2173	utters a false or fraudulent mitigation verification form with
2174	the intent to obtain or receive a discount on an insurance
2175	premium to which the individual or entity is not entitled
2176	commits a misdemeanor of the first degree, punishable as
2177	provided in s. 775.082 or s. 775.083.
2178	Section 13.  Subsection (1) and paragraph (c) of subsection
2179	(2) of section 627.712, Florida Statutes, are amended to read:
2180	627.712  Residential windstorm coverage required;
2181	availability of exclusions for windstorm or contents.--
2182	(1)  An insurer issuing a residential property insurance
2183	policy must provide windstorm coverage. Except as provided in
2184	paragraph (2)(c), this section does not apply with respect to
2185	risks that are eligible for wind-only coverage from Citizens
2186	Property Insurance Corporation under s. 627.351(6) and with
2187	respect to risks that are not eligible for coverage from
2188	Citizens Property Insurance Corporation under s. 627.351(6)(a)3.
2189	or 5. A risk ineligible for Citizens coverage under s.
2190	627.351(6)(a)3. or 5. is exempt from the requirements of this
2191	section only if the risk is located within the boundaries of the
2192	high-risk account of the corporation.
2193	(2)  A property insurer must make available, at the option
2194	of the policyholder, an exclusion of windstorm coverage.
2195	(c)  If the residential structure is eligible for wind-only
2196	coverage from Citizens Property Insurance Corporation, An
2197	insurer nonrenewing a policy and issuing a replacement policy,
2198	or issuing a new policy, that does not provide wind coverage
2199	shall provide a notice to the mortgageholder or lienholder
2200	indicating the policyholder has elected coverage that does not
2201	cover wind.
2202	Section 14.  Section 631.65, Florida Statutes, is amended
2203	to read:
2204	631.65  Prohibited advertisement or solicitation.--No
2205	person shall make, publish, disseminate, circulate, or place
2206	before the public, or cause, directly or indirectly, to be made,
2207	published, disseminated, circulated, or placed before the
2208	public, in a newspaper, magazine, or other publication, or in
2209	the form of a notice, circular, pamphlet, letter, or poster, or
2210	over any radio station or television station, or in any other
2211	way, any advertisement, announcement, or statement which uses
2212	the existence of the insurance guaranty association for the
2213	purpose of sales, solicitation, or inducement to purchase any
2214	form of insurance covered under this part. However, nothing in
2215	this section may be construed to prevent a duly licensed
2216	insurance agent from providing explanations concerning the
2217	existence or application of the insurance guaranty association
2218	to policyholders, prospective policyholders, or applicants for
2219	coverage.
2220	Section 15.  Upon receipt of funds transferred to the
2221	General Revenue Fund pursuant to s. 627.351(6)(m)10., Florida
2222	Statutes, the funds transferred are appropriated on a
2223	nonrecurring basis from the General Revenue Fund to the
2224	Insurance Regulatory Trust Fund in the Department of Financial
2225	Services for purposes of the My Safe Florida Home Program
2226	specified in s. 215.5586, Florida Statutes. The My Safe Florida
2227	Home Program shall use the funds solely for the provision of
2228	mitigation grants in accordance with s. 215.5586(2), Florida
2229	Statutes, to policyholders of Citizens Property Insurance
2230	Corporation who are otherwise eligible for grants from the My
2231	Safe Florida Home Program. The department shall establish a
2232	separate account within the trust fund for accounting purposes.
2233	Section 16.  This act shall take effect upon becoming a
2234	law.

CODING: Words stricken are deletions; words underlined are additions.