ENROLLED
       2022 Legislature                                          SB 2-A
       
       
       
       
       
       
                                                               20222Aer
    1  
    2         An act relating to property insurance; creating s.
    3         215.5552, F.S.; creating the Florida Optional
    4         Reinsurance Assistance program (FORA), to be
    5         administered by the State Board of Administration;
    6         defining terms; authorizing eligible insurers to
    7         purchase reinsurance coverage under FORA; requiring
    8         the board to provide specified coverage layers;
    9         specifying coverage limits for each option; specifying
   10         requirements for reimbursement contracts between the
   11         board and FORA insurers; specifying the calculation of
   12         payout multiples and layer retentions; authorizing the
   13         board to inspect, examine, and verify certain records;
   14         specifying the calculation of premiums and
   15         requirements for the payment of premiums; providing
   16         construction relating to the claims-paying capacity of
   17         the Florida Hurricane Catastrophe Fund; specifying
   18         requirements and procedures if a FORA insurer becomes
   19         insolvent; providing construction relating to
   20         violations; authorizing the board to take legal
   21         actions and adopt rules, including emergency rules;
   22         providing legislative findings; specifying
   23         requirements and procedures for the appropriation of
   24         funds from the General Revenue Fund to provide
   25         reimbursements; requiring the board to submit annual
   26         reports to the Governor and the Legislature; providing
   27         for contingent expiration; amending s. 624.1551, F.S.;
   28         revising conditions that must be met for a claim for
   29         extracontractual damages in a civil remedy action
   30         against a property insurer; providing construction;
   31         amending s. 624.3161, F.S.; providing that property
   32         insurers may be subject to an additional market
   33         conduct examination by the Office of Insurance
   34         Regulation after a hurricane under certain
   35         circumstances; providing requirements for such
   36         examination; amending s. 624.418, F.S.; adding
   37         specified grounds on which the office may suspend or
   38         revoke a property insurer’s certificate of authority;
   39         amending s. 624.424, F.S.; adding information required
   40         to be reported by property insurers in their quarterly
   41         supplemental reports; amending s. 626.9373, F.S.;
   42         deleting a right to attorney fees for judgments or
   43         decrees against surplus lines insurers in suits
   44         arising under residential or commercial property
   45         insurance policies; amending s. 626.9541, F.S.;
   46         revising conditions for a certain unfair claim
   47         settlement practice by a property insurer; amending s.
   48         627.351, F.S.; authorizing Citizens Property Insurance
   49         Corporation, if certain conditions are met, to
   50         consolidate its three separate accounts into a single
   51         Citizens account for all revenues, assets,
   52         liabilities, losses, and expenses of the corporation;
   53         specifying the corporation’s authority, and
   54         requirements for and prohibited acts by the
   55         corporation, under the Citizens account; providing
   56         applicability; specifying requirements and procedures
   57         with respect to a deficit in the Citizens account;
   58         defining terms; providing requirements for the Florida
   59         Surplus Lines Service Office; revising requirements
   60         for the corporation’s plan of operation; revising
   61         eligibility requirements for renewing coverage with
   62         the corporation for personal lines residential and
   63         commercial lines residential risks; providing
   64         construction; providing requirements relating to
   65         certain excess premium and investment income in the
   66         Citizens account; authorizing specified insurers to
   67         petition the office to qualify as limited
   68         apportionment companies; providing requirements for
   69         such companies; specifying disclosure requirements to
   70         applicants for coverage from the corporation if the
   71         Citizens account is established; providing that, for
   72         certain purposes, the corporation’s rates for coverage
   73         may not be competitive with approved rates charged in
   74         the admitted voluntary market; requiring the office to
   75         provide certain information to the corporation;
   76         specifying annual rate increase limits for personal
   77         lines policies written on or after a specified date
   78         which do not cover a primary residence; defining the
   79         term “primary residence”; requiring the corporation to
   80         require the securing and maintenance of flood
   81         insurance as a condition of personal lines residential
   82         coverage; specifying requirements for such flood
   83         insurance coverage; specifying deadlines by which
   84         policyholders must secure and maintain flood
   85         insurance; revising eligibility requirements for
   86         coverage with the corporation when take-out offers are
   87         received by policyholders; specifying a burden of
   88         proof for corporation policyholders making claims for
   89         water damage; making technical changes; conforming
   90         provisions to changes made by the act; amending s.
   91         627.3511, F.S.; conforming cross-references; amending
   92         s. 627.3518, F.S.; deleting a provision construing the
   93         eligibility for coverage with the corporation for
   94         certain applicants; conforming a provision to changes
   95         made by the act; amending s. 627.410, F.S.; requiring
   96         the office to reexamine certain policy forms of a
   97         property insurer under certain circumstances;
   98         specifying actions the office may take; amending s.
   99         627.428, F.S.; deleting a right to attorney fees for
  100         judgments or decrees against insurers in suits arising
  101         under residential or commercial property insurance
  102         policies; amending s. 627.7011, F.S.; revising
  103         disclosure requirements relating to flood insurance
  104         for insurers issuing homeowners’ policies; amending s.
  105         627.70131, F.S.; revising requirements for insurers
  106         relating to acknowledging communications regarding
  107         claims, investigating claims, sending estimates of
  108         losses to policyholders, recordkeeping, and paying or
  109         denying claims; authorizing insurers to use specified
  110         methods in investigating losses; authorizing insurers
  111         to void insurance policies under certain
  112         circumstances; defining the term “factors beyond the
  113         control of the insurer”; specifying circumstances
  114         under which certain requirements are tolled; providing
  115         construction; amending s. 627.70132, F.S.; revising
  116         timeframes under which notices of claims, reopened
  117         claims, and supplemental claims under property
  118         insurance policies must be given to insurers or be
  119         barred; amending s. 627.70152, F.S.; revising
  120         applicability; deleting the definition of the term
  121         “amount obtained”; providing that certain
  122         prelitigation notices and documentation are not
  123         admissible as evidence in any proceeding; deleting
  124         provisions relating to the calculation of attorney
  125         fees; creating s. 627.70154, F.S.; specifying
  126         conditions that must be met for a property insurance
  127         policy to require mandatory binding arbitration;
  128         amending s. 627.7074, F.S.; deleting the right to
  129         attorney fees payable by insurers in the alternative
  130         procedure for resolution of disputed sinkhole
  131         insurance claims; conforming a provision to changes
  132         made by the act; amending s. 627.7142, F.S.;
  133         conforming provisions to changes made by the act;
  134         amending s. 627.7152, F.S.; prohibiting policyholders
  135         from assigning post-loss insurance benefits under
  136         residential or commercial property insurance policies
  137         issued on or after a specified date; providing
  138         construction; amending s. 627.7154, F.S.; revising
  139         duties of the office’s Property Insurer Stability
  140         Unit; amending s. 631.252, F.S.; providing that a
  141         coverage continuation period for policies of an
  142         insolvent property insurer may be extended by the
  143         office under specified circumstances; amending s.
  144         768.79, F.S.; authorizing a property insurer in a
  145         breach of contract action to make a joint offer of
  146         judgment or settlement that is conditioned on the
  147         mutual acceptance of all joint offerees; providing an
  148         appropriation; providing effective dates.
  149          
  150  Be It Enacted by the Legislature of the State of Florida:
  151  
  152         Section 1. Section 215.5552, Florida Statutes, is created
  153  to read:
  154         215.5552Florida Optional Reinsurance Assistance program.
  155         (1)CREATION OF THE FLORIDA OPTIONAL REINSURANCE ASSISTANCE
  156  PROGRAM.There is created the Florida Optional Reinsurance
  157  Assistance program to be administered by the State Board of
  158  Administration.
  159         (2)DEFINITIONS.—As used in this section, the term:
  160         (a)“Board” means the State Board of Administration.
  161         (b)“Contract year” has the same meaning as in s.
  162  215.555(2)(o).
  163         (c)“Covered event” has the same meaning as in s.
  164  215.555(2)(b).
  165         (d)“Covered policy” has the same meaning as in s.
  166  215.555(2)(c).
  167         (e)“FHCF” means the Florida Hurricane Catastrophe Fund
  168  created under s. 215.555.
  169         (f)“Final FORA premium” means the premium due no later
  170  than March 1, 2024, paid by a FORA insurer after the actual 2023
  171  FHCF premiums are calculated.
  172         (g)“FORA” means the Florida Optional Reinsurance
  173  Assistance program created under this section.
  174         (h)“FORA eligible insurer” means a FHCF participating
  175  insurer as of November 30, 2022. New FHCF participants after
  176  that date are ineligible for FORA coverage. In addition, any
  177  joint underwriting association, risk apportionment plan, or
  178  other entity created under s. 627.351 is not considered a FORA
  179  insurer and may not obtain coverage under FORA.
  180         (i)“FORA insurer” means a FORA eligible insurer that
  181  executes a FORA reimbursement contract pursuant to this section.
  182         (j)“FORA layer limit” means, for the 2023-2024 contract
  183  year, a FORA insurer’s maximum payout for its FORA layer.
  184         (k)“FORA layer retention” means the amount of losses below
  185  which a FORA insurer is not entitled to reimbursement for the
  186  selected layer under FORA.
  187         (l)“FORA payout multiple” means the factors by FHCF
  188  coverage and FORA layer that are multiplied by a FORA insurer’s
  189  FHCF premium to calculate the FORA insurer’s FORA layer limits.
  190         (m)“FORA reimbursement contract” means the reimbursement
  191  contract reflecting the obligations of a FORA insurer and the
  192  board.
  193         (n)“FORA retention multiple” means the factors by FHCF
  194  coverage and FORA layer that are multiplied by a FORA insurer’s
  195  FHCF premium to calculate the FORA insurer’s FORA layer
  196  retentions.
  197         (o)“Initial FORA premium” means the premium paid by a FORA
  198  insurer by July 1, 2023, for coverage under the FORA program.
  199         (p)“Losses” has the same meaning as in s. 215.555(2)(d).
  200         (q)“RAP insurer” has the same meaning as in s.
  201  215.5551(2)(h).
  202         (r)“Unsound insurer” means a FORA insurer determined by
  203  the Office of Insurance Regulation to be in unsound condition as
  204  defined in s. 624.80(2) or a FORA insurer placed in receivership
  205  under chapter 631.
  206         (3)COVERAGE.—
  207         (a)Each FORA eligible insurer may purchase coverage under
  208  FORA. The board shall provide four optional layers below the
  209  FHCF retention prior to the third event dropdown of the FHCF
  210  retention set forth in s. 215.555(2)(e)4. Only RAP insurers
  211  required to participate in the 2022-2023 contract year may
  212  select FORA layers 1 through 3. All FORA eligible insurers may
  213  purchase FORA layer 4. If a RAP insurer required to participate
  214  in the 2022-2023 contract year chooses to purchase layer 2, 3,
  215  or 4, such layers must be purchased inclusive of the prior layer
  216  and cannot be purchased separately.
  217         (b)FORA industry limits prior to FORA insurer selections
  218  are as follows:
  219         1.FORA industry layer 1 limit is $1 billion.
  220         2.FORA industry layer 2 limit is $1 billion.
  221         3.FORA industry layer 3 limit is $2 billion divided by the
  222  RAP Qualification ratio minus $2 billion.
  223         4.FORA industry layer 4 limit is $1 billion minus the
  224  total FORA industry limit selected for FORA layers 1, 2, and 3,
  225  plus the total FORA premium collected for FORA layers 1, 2, and
  226  3.
  227         (c)The maximum aggregate coverage for all selected FORA
  228  layers is $1 billion as provided under paragraph (11)(a) plus
  229  premiums needed to fulfill the obligations of this section.
  230         (4)FORA REIMBURSEMENT CONTRACTS.—
  231         (a)FORA eligible insurers selecting coverage must execute
  232  a FORA reimbursement contract with the board.
  233         (b)The board must enter into a FORA reimbursement contract
  234  effective June 1, 2023, with each FORA eligible insurer electing
  235  to purchase coverage. Such contract must provide coverage
  236  pursuant to this section in exchange for premium paid.
  237         (c)The FORA reimbursement contract must be executed by the
  238  FORA insurer no later than April 15, 2023, for layers 1 through
  239  3, and May 30, 2023, for layer 4.
  240         (d)For the two covered events with the largest losses for
  241  the FORA insurer, the FORA reimbursement contract must contain a
  242  promise by the board to reimburse the FORA insurer for 100
  243  percent of its losses from each covered event in excess of the
  244  lowest selected FORA layer’s retention. The sum of the FORA
  245  insurer’s covered losses from the two covered events with the
  246  largest losses from each FORA layer may not exceed the FORA
  247  insurer’s combined selected FORA layer limit or limits.
  248         (e)The FORA reimbursement contract must provide that
  249  reimbursement amounts are not reduced by reinsurance paid or
  250  payable to the insurer from other sources.
  251         (f)The board shall calculate and report to each FORA
  252  insurer the initial and final FORA payout multiples for each
  253  FORA layer using the source data described in paragraph (5)(a).
  254         1.For FORA layer 1, the FORA payout multiple is the
  255  quotient of $1 billion divided by the FHCF industry aggregate
  256  retention multiplied by the FHCF retention multiple for the FHCF
  257  coverage selected.
  258         2.For FORA layer 2, the FORA payout multiple is the
  259  quotient of $1 billion divided by the FHCF industry aggregate
  260  retention multiplied by the FHCF retention multiple for the FHCF
  261  coverage selected.
  262         3.For FORA layer 3, the FORA payout multiple is calculated
  263  as follows: the numerator is the quotient of $2 billion divided
  264  by the RAP qualification ratio as defined in s. 215.5551(2)(j)
  265  minus $2 billion. The denominator is the FHCF industry aggregate
  266  retention. The FORA multiple is the FHCF retention multiple
  267  multiplied by the numerator divided by the denominator.
  268         4.The FORA layer 4 payout multiple is the total FORA
  269  industry layer 4 limit divided by the FHCF industry aggregate
  270  retention multiplied by the FHCF retention multiple for the FHCF
  271  coverage selected. For FORA layer 4, the total FORA industry
  272  layer limit is $1 billion minus the total FORA industry limit
  273  selected for FORA layers 1, 2, and 3, plus the total FORA
  274  premium collected for FORA layers 1, 2, and 3.
  275         (g)For each FORA layer, the FORA payout multiple is
  276  multiplied by the FORA insurer’s FHCF premium to calculate its
  277  FORA maximum payout. FORA payout multiples are calculated for 45
  278  percent, 75 percent, and 90 percent FHCF mandatory coverage
  279  selections.
  280         (h)For a FORA insurer that selects more than one layer,
  281  the FORA layer limits shall be combined to a single aggregate
  282  limit for the two covered events with the largest losses for the
  283  FORA insurer.
  284         (i)FORA layer retentions are calculated as follows:
  285         1.For each FORA layer, the board shall calculate and
  286  report to each FORA insurer the initial and final FORA retention
  287  multiples for each FHCF coverage selection as the FHCF retention
  288  multiple minus the FORA payout multiple using the source data
  289  described in paragraph (5)(a). The FORA retention multiple is
  290  multiplied by the FORA insurer’s FHCF premium to calculate its
  291  FORA retention. FORA retention multiples are calculated for 45
  292  percent, 75 percent, and 90 percent FHCF mandatory coverage
  293  selections.
  294         2.The FORA industry retention for the 2023-2024 contract
  295  year for FORA layer 1 is the FHCF’s industry retention minus $1
  296  billion. The FORA layer 2 industry retention is the FHCF
  297  industry retention minus $2 billion. The FORA layer 3 industry
  298  retention is the FHCF’s industry retention minus the quotient of
  299  $2 billion divided by the RAP qualification ratio. The FORA
  300  layer 4 industry retention is the FORA layer 3 retention minus
  301  the FORA layer 4 limit.
  302         3.A FORA insurer’s initial and final FORA retentions are
  303  determined by multiplying its FHCF reimbursement premium by the
  304  FORA retention multiple for each FHCF coverage selection using
  305  the source data in paragraph (5)(a).
  306         4.For a FORA insurer that selects more than one layer, the
  307  FORA combined layer retention shall be the lowest selected layer
  308  retention for each of the two covered events with the largest
  309  losses for the FORA insurer.
  310         (j)To ensure that insurers have properly reported the
  311  losses for which FORA reimbursements have been made, the board
  312  may inspect, examine, and verify the records of each FORA
  313  participating insurer’s covered policies at such times as the
  314  board deems appropriate for the specific purpose of validating
  315  the accuracy of losses required to be reported under the terms
  316  and conditions of the FORA reimbursement contract.
  317         (5)FORA PREMIUMS.—
  318         (a)Premiums shall be charged as follows:
  319         1.Fifty percent Rate on Line multiplied by the FORA
  320  insurer’s FORA layer 1 limit.
  321         2.Fifty-five percent Rate on Line multiplied by the FORA
  322  insurer’s FORA layer 2 limit.
  323         3.Sixty percent Rate on Line multiplied by the FORA
  324  insurer’s FORA layer 3 limit.
  325         4.Sixty-five percent Rate on Line multiplied by the FORA
  326  insurer’s FORA layer 4 limit.
  327         (b)Initial FORA premiums shall be based on the 2023 FHCF
  328  projected industry retention, FHCF retention multiples, 2022 RAP
  329  qualification ratio, and insurers’ 2022 FHCF premiums. Final
  330  FORA premiums will be adjusted after December 31, 2023, based on
  331  December 31, 2023, FHCF premiums, FHCF industry retention, the
  332  2023 RAP qualification ratio and insurers’ 2023 FHCF premiums.
  333         (c)Failure to pay the initial FORA premium in full by July
  334  1, 2023, shall result in disqualification as a FORA insurer. The
  335  final FORA premium will be due no later than March 1, 2024.
  336         (6)CLAIMS-PAYING CAPACITY.—FORA shall not affect the
  337  claims-paying capacity of the FHCF as provided in s.
  338  215.555(4)(c)1.
  339         (7)INSOLVENCY OF FORA INSURER.—
  340         (a)The FORA reimbursement contract must provide that in
  341  the event of an insolvency of a FORA insurer, the board shall
  342  pay reimbursements directly to the applicable state guaranty
  343  fund for the benefit of policyholders in this state of the FORA
  344  insurer.
  345         (b)If an authorized insurer or the Citizens Property
  346  Insurance Corporation accepts an assignment of an unsound
  347  insurer’s FORA reimbursement contract, the board shall apply the
  348  unsound insurer’s FORA reimbursement contract to such policies
  349  and treat the authorized insurer or the Citizens Property
  350  Insurance Corporation as if it were the unsound insurer for the
  351  remaining term of the FORA reimbursement contract, with all
  352  rights and duties of the unsound insurer beginning on the date
  353  it provides coverage for such policies. This paragraph may not
  354  be construed to limit the board’s right to receive the premium
  355  due under the Unsound insurer’s FORA reimbursement contract.
  356         (8)VIOLATIONS.—Any violation of this section or of rules
  357  adopted under this section constitutes a violation of the
  358  Florida Insurance Code.
  359         (9)LEGAL PROCEEDINGS.—The board may take any action
  360  necessary to enforce the rules, provisions, and requirements of
  361  the FORA reimbursement contract under this section.
  362         (10)RULEMAKING.—The board may adopt rules to implement
  363  this section. In addition, the board may adopt emergency rules
  364  pursuant to s. 120.54(4) at any time as are necessary to
  365  implement this section for the 2023-2024 fiscal year. The
  366  Legislature finds that such emergency rulemaking power is
  367  necessary in order to address a critical need in the state’s
  368  problematic property insurance market. The Legislature further
  369  finds that the uniquely short timeframe needed to effectively
  370  implement this section for the 2023-2024 fiscal year requires
  371  that the board adopt rules as quickly as practicable. Therefore,
  372  in adopting such emergency rules, the board need not make the
  373  findings required by s. 120.54(4)(a). Emergency rules adopted
  374  under this section are exempt from s. 120.54(4)(c) and shall
  375  remain in effect until replaced by rules adopted under the
  376  nonemergency rulemaking procedures of chapter 120, which must
  377  occur no later than December 31, 2023.
  378         (11)APPROPRIATION.—
  379         (a)Within 60 days after a covered event, the board shall
  380  submit written notice to the Executive Office of the Governor if
  381  the board determines that funds from FORA coverage established
  382  by this section will be necessary to reimburse FORA insurers for
  383  losses associated with the covered event. The initial notice,
  384  and any subsequent requests, must specify the amount necessary
  385  to provide FORA reimbursements. Upon receiving such notice, the
  386  Executive Office of the Governor shall instruct the Chief
  387  Financial Officer to draw a warrant from the General Revenue
  388  Fund for a transfer to the board for FORA in the amount
  389  requested. The Executive Office of the Governor shall provide
  390  written notification to the chair and vice chair of the
  391  Legislative Budget Commission at least 3 days before the
  392  effective date of the warrant. Cumulative transfers authorized
  393  under this paragraph may not exceed $1 billion.
  394         (b)Upon this act becoming a law, the Executive Office of
  395  the Governor shall instruct the Chief Financial Officer to draw
  396  a warrant from the General Revenue Fund for a transfer of $2
  397  million to the board for the implementation and administration
  398  of FORA and post-event examinations for covered events that
  399  require FORA coverage. If the board determines additional
  400  administrative funds are needed, the board shall submit written
  401  notice to the Executive Office of the Governor that funds will
  402  be necessary for the implementation and administration of FORA
  403  and post-event examinations for covered events that require FORA
  404  coverage. The notice must specify the amount necessary for
  405  administration of FORA and post-event examinations. Upon
  406  receiving such notice, the Executive Office of the Governor
  407  shall instruct the Chief Financial Officer to draw a warrant
  408  from the General Revenue Fund for a transfer to the board for
  409  FORA in the amount requested. The Executive Office of the
  410  Governor shall provide written notification to the chair and
  411  vice chair of the Legislative Budget Commission at least 3 days
  412  before the effective date of the warrant. Cumulative transfers
  413  authorized under this paragraph may not exceed $6 million.
  414         (c)If a covered event occurs that triggers reimbursements
  415  under FORA, no later than January 31, 2024, and quarterly
  416  thereafter, the board shall submit a report to the Executive
  417  Office of the Governor, the President of the Senate, and the
  418  Speaker of the House of Representatives detailing any
  419  reimbursements of FORA, all premiums collected, all loss
  420  development projections, and detailed information about
  421  administrative and post-event examination activities and
  422  expenditures.
  423         (12)EXPIRATION DATE.—If no general revenue funds have been
  424  transferred to the board for FORA under subsection (11) by June
  425  30, 2026, this section expires on July 1, 2026. If general
  426  revenue funds have been transferred to the board for FORA under
  427  subsection (11) by June 30, 2026, this section expires on July
  428  1, 2030, and all unencumbered funds collected under this section
  429  shall be transferred by the board back to the General Revenue
  430  Fund unallocated.
  431         Section 2. Section 624.1551, Florida Statutes, is amended
  432  to read:
  433         624.1551 Civil remedy actions against property insurers.
  434  Notwithstanding any provision of s. 624.155 to the contrary, in
  435  any claim for extracontractual damages under s. 624.155(1)(b),
  436  no action shall lie until a named or omnibus insured or a named
  437  beneficiary has established through an adverse adjudication by a
  438  court of law a claimant must establish that the property insurer
  439  breached the insurance contract and a final judgment or decree
  440  has been rendered against the insurer. Acceptance of an offer of
  441  judgment under s. 768.79 or the payment of an appraisal award
  442  does not constitute an adverse adjudication under this section.
  443  The difference between an insurer’s appraiser’s final estimate
  444  and the appraisal award may be evidence of bad faith to prevail
  445  in a claim for extracontractual damages under s. 624.155(1)(b),
  446  but is not deemed an adverse adjudication under this section and
  447  does not, on its own, give rise to a cause of action.
  448         Section 3. Subsection (7) is added to section 624.3161,
  449  Florida Statutes, to read:
  450         624.3161 Market conduct examinations.—
  451         (7) Notwithstanding subsection (1), any authorized insurer
  452  transacting property insurance business in this state may be
  453  subject to an additional market conduct examination after a
  454  hurricane if the insurer:
  455         (a)Is among the top 20 percent of insurers based upon a
  456  calculation of the ratio of hurricane-related property insurance
  457  claims filed to the number of property insurance policies in
  458  force;
  459         (b)Is among the top 20 percent of insurers based upon a
  460  calculation of the ratio of consumer complaints made to the
  461  department to hurricane-related claims;
  462         (c)Has made significant payments to its managing general
  463  agent since the hurricane; or
  464         (d)Is identified by the office as necessitating a market
  465  conduct exam for any other reason.
  466  
  467  All relevant criteria under this section and s. 624.316 shall be
  468  applied to the market conduct examination under this subsection.
  469  Such an examination must be initiated within 18 months after the
  470  landfall of a hurricane that results in an executive order or a
  471  state of emergency issued by the Governor. An examination of an
  472  insurer under this subsection must also include an examination
  473  of its managing general agent as if it were the insurer.
  474         Section 4. Paragraph (c) of subsection (2) of section
  475  624.418, Florida Statutes, is amended to read:
  476         624.418 Suspension, revocation of certificate of authority
  477  for violations and special grounds.—
  478         (2) The office may, in its discretion, suspend or revoke
  479  the certificate of authority of an insurer if it finds that the
  480  insurer:
  481         (c) Has for any line, class, or combination thereof, with
  482  such frequency as to indicate its general business practice in
  483  this state, without just cause:
  484         1. Refused to pay proper claims arising under its policies,
  485  whether any such claim is in favor of an insured or is in favor
  486  of a third person with respect to the liability of an insured to
  487  such third person, or without just cause compels such insureds
  488  or claimants to accept less than the amount due them or to
  489  employ attorneys or to bring suit against the insurer or such an
  490  insured to secure full payment or settlement of such claims; or
  491         2.Compelled insureds to participate in appraisal under a
  492  property insurance policy in order to secure full payment or
  493  settlement of such claims.
  494         Section 5. Paragraph (a) of subsection (10) of section
  495  624.424, Florida Statutes, is amended to read:
  496         624.424 Annual statement and other information.—
  497         (10)(a) Each insurer or insurer group doing business in
  498  this state shall file on a quarterly basis in conjunction with
  499  financial reports required by paragraph (1)(a) a supplemental
  500  report on an individual and group basis on a form prescribed by
  501  the commission with information on personal lines and commercial
  502  lines residential property insurance policies in this state. The
  503  supplemental report shall include separate information for
  504  personal lines property policies and for commercial lines
  505  property policies and totals for each item specified, including
  506  premiums written for each of the property lines of business as
  507  described in ss. 215.555(2)(c) and 627.351(6)(a). The report
  508  shall include the following information for each county on a
  509  monthly basis:
  510         1. Total number of policies in force at the end of each
  511  month.
  512         2. Total number of policies canceled.
  513         3. Total number of policies nonrenewed.
  514         4. Number of policies canceled due to hurricane risk.
  515         5. Number of policies nonrenewed due to hurricane risk.
  516         6. Number of new policies written.
  517         7. Total dollar value of structure exposure under policies
  518  that include wind coverage.
  519         8. Number of policies that exclude wind coverage.
  520         9.Number of claims open each month.
  521         10.Number of claims closed each month.
  522         11.Number of claims pending each month.
  523         12.Number of claims in which either the insurer or insured
  524  invoked any form of alternative dispute resolution, and
  525  specifying which form of alternative dispute resolution was
  526  used.
  527         Section 6. Subsections (1) and (3) of section 626.9373,
  528  Florida Statutes, are amended to read:
  529         626.9373 Attorney fees.—
  530         (1) Except as provided in subsection (3), upon the
  531  rendition of a judgment or decree by any court of this state
  532  against a surplus lines insurer in favor of any named or omnibus
  533  insured or the named beneficiary under a policy or contract
  534  executed by the insurer on or after the effective date of this
  535  act, the trial court or, if the insured or beneficiary prevails
  536  on appeal, the appellate court, shall adjudge or decree against
  537  the insurer in favor of the insured or beneficiary a reasonable
  538  sum as fees or compensation for the insured’s or beneficiary’s
  539  attorney prosecuting the lawsuit for which recovery is awarded.
  540  In a suit arising under a residential or commercial property
  541  insurance policy, the amount of reasonable attorney fees shall
  542  be awarded only as provided in s. 57.105 or s. 627.70152, as
  543  applicable.
  544         (3) In a suit arising under a residential or commercial
  545  property insurance policy, there is no the right to attorney
  546  fees under this section may not be transferred to, assigned to,
  547  or acquired in any other manner by anyone other than a named or
  548  omnibus insured or a named beneficiary.
  549         Section 7. Paragraph (i) of subsection (1) of section
  550  626.9541, Florida Statutes, is amended to read:
  551         626.9541 Unfair methods of competition and unfair or
  552  deceptive acts or practices defined.—
  553         (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
  554  ACTS.—The following are defined as unfair methods of competition
  555  and unfair or deceptive acts or practices:
  556         (i) Unfair claim settlement practices.—
  557         1. Attempting to settle claims on the basis of an
  558  application, when serving as a binder or intended to become a
  559  part of the policy, or any other material document which was
  560  altered without notice to, or knowledge or consent of, the
  561  insured;
  562         2. A material misrepresentation made to an insured or any
  563  other person having an interest in the proceeds payable under
  564  such contract or policy, for the purpose and with the intent of
  565  effecting settlement of such claims, loss, or damage under such
  566  contract or policy on less favorable terms than those provided
  567  in, and contemplated by, such contract or policy;
  568         3. Committing or performing with such frequency as to
  569  indicate a general business practice any of the following:
  570         a. Failing to adopt and implement standards for the proper
  571  investigation of claims;
  572         b. Misrepresenting pertinent facts or insurance policy
  573  provisions relating to coverages at issue;
  574         c. Failing to acknowledge and act promptly upon
  575  communications with respect to claims;
  576         d. Denying claims without conducting reasonable
  577  investigations based upon available information;
  578         e. Failing to affirm or deny full or partial coverage of
  579  claims, and, as to partial coverage, the dollar amount or extent
  580  of coverage, or failing to provide a written statement that the
  581  claim is being investigated, upon the written request of the
  582  insured within 30 days after proof-of-loss statements have been
  583  completed;
  584         f. Failing to promptly provide a reasonable explanation in
  585  writing to the insured of the basis in the insurance policy, in
  586  relation to the facts or applicable law, for denial of a claim
  587  or for the offer of a compromise settlement;
  588         g. Failing to promptly notify the insured of any additional
  589  information necessary for the processing of a claim;
  590         h. Failing to clearly explain the nature of the requested
  591  information and the reasons why such information is necessary;
  592  or
  593         i. Failing to pay personal injury protection insurance
  594  claims within the time periods required by s. 627.736(4)(b). The
  595  office may order the insurer to pay restitution to a
  596  policyholder, medical provider, or other claimant, including
  597  interest at a rate consistent with the amount set forth in s.
  598  55.03(1), for the time period within which an insurer fails to
  599  pay claims as required by law. Restitution is in addition to any
  600  other penalties allowed by law, including, but not limited to,
  601  the suspension of the insurer’s certificate of authority; or
  602         4. Failing to pay undisputed amounts of partial or full
  603  benefits owed under first-party property insurance policies
  604  within 60 90 days after an insurer receives notice of a
  605  residential property insurance claim, determines the amounts of
  606  partial or full benefits, and agrees to coverage, unless payment
  607  of the undisputed benefits is prevented by factors beyond the
  608  control of the insurer as defined in s. 627.70131(5) an act of
  609  God, prevented by the impossibility of performance, or due to
  610  actions by the insured or claimant that constitute fraud, lack
  611  of cooperation, or intentional misrepresentation regarding the
  612  claim for which benefits are owed.
  613         Section 8. Effective January 1, 2023, paragraphs (b), (c),
  614  (n), (o), (p), (q), (v), (w), (aa), and (ii) of subsection (6)
  615  of section 627.351, Florida Statutes, are amended, and paragraph
  616  (kk) is added to that subsection, to read:
  617         627.351 Insurance risk apportionment plans.—
  618         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
  619         (b)1. All insurers authorized to write one or more subject
  620  lines of business in this state are subject to assessment by the
  621  corporation and, for the purposes of this subsection, are
  622  referred to collectively as “assessable insurers.” Insurers
  623  writing one or more subject lines of business in this state
  624  pursuant to part VIII of chapter 626 are not assessable
  625  insurers; however, insureds who procure one or more subject
  626  lines of business in this state pursuant to part VIII of chapter
  627  626 are subject to assessment by the corporation and are
  628  referred to collectively as “assessable insureds.” An insurer’s
  629  assessment liability begins on the first day of the calendar
  630  year following the year in which the insurer was issued a
  631  certificate of authority to transact insurance for subject lines
  632  of business in this state and terminates 1 year after the end of
  633  the first calendar year during which the insurer no longer holds
  634  a certificate of authority to transact insurance for subject
  635  lines of business in this state.
  636         2.a. All revenues, assets, liabilities, losses, and
  637  expenses of the corporation shall be divided into three separate
  638  accounts as follows:
  639         (I) A personal lines account for personal residential
  640  policies issued by the corporation which provides comprehensive,
  641  multiperil coverage on risks that are not located in areas
  642  eligible for coverage by the Florida Windstorm Underwriting
  643  Association as those areas were defined on January 1, 2002, and
  644  for policies that do not provide coverage for the peril of wind
  645  on risks that are located in such areas;
  646         (II) A commercial lines account for commercial residential
  647  and commercial nonresidential policies issued by the corporation
  648  which provides coverage for basic property perils on risks that
  649  are not located in areas eligible for coverage by the Florida
  650  Windstorm Underwriting Association as those areas were defined
  651  on January 1, 2002, and for policies that do not provide
  652  coverage for the peril of wind on risks that are located in such
  653  areas; and
  654         (III) A coastal account for personal residential policies
  655  and commercial residential and commercial nonresidential
  656  property policies issued by the corporation which provides
  657  coverage for the peril of wind on risks that are located in
  658  areas eligible for coverage by the Florida Windstorm
  659  Underwriting Association as those areas were defined on January
  660  1, 2002. The corporation may offer policies that provide
  661  multiperil coverage and shall offer policies that provide
  662  coverage only for the peril of wind for risks located in areas
  663  eligible for coverage in the coastal account. Effective July 1,
  664  2014, the corporation shall cease offering new commercial
  665  residential policies providing multiperil coverage and shall
  666  instead continue to offer commercial residential wind-only
  667  policies, and may offer commercial residential policies
  668  excluding wind. The corporation may, however, continue to renew
  669  a commercial residential multiperil policy on a building that is
  670  insured by the corporation on June 30, 2014, under a multiperil
  671  policy. In issuing multiperil coverage, the corporation may use
  672  its approved policy forms and rates for the personal lines
  673  account. An applicant or insured who is eligible to purchase a
  674  multiperil policy from the corporation may purchase a multiperil
  675  policy from an authorized insurer without prejudice to the
  676  applicant’s or insured’s eligibility to prospectively purchase a
  677  policy that provides coverage only for the peril of wind from
  678  the corporation. An applicant or insured who is eligible for a
  679  corporation policy that provides coverage only for the peril of
  680  wind may elect to purchase or retain such policy and also
  681  purchase or retain coverage excluding wind from an authorized
  682  insurer without prejudice to the applicant’s or insured’s
  683  eligibility to prospectively purchase a policy that provides
  684  multiperil coverage from the corporation. It is the goal of the
  685  Legislature that there be an overall average savings of 10
  686  percent or more for a policyholder who currently has a wind-only
  687  policy with the corporation, and an ex-wind policy with a
  688  voluntary insurer or the corporation, and who obtains a
  689  multiperil policy from the corporation. It is the intent of the
  690  Legislature that the offer of multiperil coverage in the coastal
  691  account be made and implemented in a manner that does not
  692  adversely affect the tax-exempt status of the corporation or
  693  creditworthiness of or security for currently outstanding
  694  financing obligations or credit facilities of the coastal
  695  account, the personal lines account, or the commercial lines
  696  account. The coastal account must also include quota share
  697  primary insurance under subparagraph (c)2. The area eligible for
  698  coverage under the coastal account also includes the area within
  699  Port Canaveral, which is bordered on the south by the City of
  700  Cape Canaveral, bordered on the west by the Banana River, and
  701  bordered on the north by Federal Government property.
  702         b. The three separate accounts must be maintained as long
  703  as financing obligations entered into by the Florida Windstorm
  704  Underwriting Association or Residential Property and Casualty
  705  Joint Underwriting Association are outstanding, in accordance
  706  with the terms of the corresponding financing documents. If no
  707  such financing obligations remain outstanding or if the
  708  financing documents allow for combining of accounts, the
  709  corporation may consolidate the three separate accounts into a
  710  new account, to be known as the Citizens account, for all
  711  revenues, assets, liabilities, losses, and expenses of the
  712  corporation. The Citizens account, if established by the
  713  corporation, is authorized to provide coverage to the same
  714  extent as provided under each of the three separate accounts.
  715  The authority to provide coverage under the Citizens account is
  716  set forth in subparagraph 4. If the financing obligations are no
  717  longer outstanding, the corporation may use a single account for
  718  all revenues, assets, liabilities, losses, and expenses of the
  719  corporation. Consistent with this subparagraph and prudent
  720  investment policies that minimize the cost of carrying debt, the
  721  board shall exercise its best efforts to retire existing debt or
  722  obtain the approval of necessary parties to amend the terms of
  723  existing debt, so as to structure the most efficient plan for
  724  consolidating the three separate accounts into a single account.
  725  Once the accounts are combined into one account, this
  726  subparagraph and subparagraph 3. shall be replaced in their
  727  entirety by subparagraphs 4. and 5.
  728         c. Creditors of the Residential Property and Casualty Joint
  729  Underwriting Association and the accounts specified in sub-sub
  730  subparagraphs a.(I) and (II) may have a claim against, and
  731  recourse to, those accounts and no claim against, or recourse
  732  to, the account referred to in sub-sub-subparagraph a.(III).
  733  Creditors of the Florida Windstorm Underwriting Association have
  734  a claim against, and recourse to, the account referred to in
  735  sub-sub-subparagraph a.(III) and no claim against, or recourse
  736  to, the accounts referred to in sub-sub-subparagraphs a.(I) and
  737  (II).
  738         d. Revenues, assets, liabilities, losses, and expenses not
  739  attributable to particular accounts shall be prorated among the
  740  accounts.
  741         e. The Legislature finds that the revenues of the
  742  corporation are revenues that are necessary to meet the
  743  requirements set forth in documents authorizing the issuance of
  744  bonds under this subsection.
  745         f. The income of the corporation may not inure to the
  746  benefit of any private person.
  747         3. With respect to a deficit in an account:
  748         a. After accounting for the Citizens policyholder surcharge
  749  imposed under sub-subparagraph i., if the remaining projected
  750  deficit incurred in the coastal account in a particular calendar
  751  year:
  752         (I) Is not greater than 2 percent of the aggregate
  753  statewide direct written premium for the subject lines of
  754  business for the prior calendar year, the entire deficit shall
  755  be recovered through regular assessments of assessable insurers
  756  under paragraph (q) and assessable insureds.
  757         (II) Exceeds 2 percent of the aggregate statewide direct
  758  written premium for the subject lines of business for the prior
  759  calendar year, the corporation shall levy regular assessments on
  760  assessable insurers under paragraph (q) and on assessable
  761  insureds in an amount equal to the greater of 2 percent of the
  762  projected deficit or 2 percent of the aggregate statewide direct
  763  written premium for the subject lines of business for the prior
  764  calendar year. Any remaining projected deficit shall be
  765  recovered through emergency assessments under sub-subparagraph
  766  e. d.
  767         b. Each assessable insurer’s share of the amount being
  768  assessed under sub-subparagraph a. must be in the proportion
  769  that the assessable insurer’s direct written premium for the
  770  subject lines of business for the year preceding the assessment
  771  bears to the aggregate statewide direct written premium for the
  772  subject lines of business for that year. The assessment
  773  percentage applicable to each assessable insured is the ratio of
  774  the amount being assessed under sub-subparagraph a. to the
  775  aggregate statewide direct written premium for the subject lines
  776  of business for the prior year. Assessments levied by the
  777  corporation on assessable insurers under sub-subparagraph a.
  778  must be paid as required by the corporation’s plan of operation
  779  and paragraph (q). Assessments levied by the corporation on
  780  assessable insureds under sub-subparagraph a. shall be collected
  781  by the surplus lines agent at the time the surplus lines agent
  782  collects the surplus lines tax required by s. 626.932, and paid
  783  to the Florida Surplus Lines Service Office at the time the
  784  surplus lines agent pays the surplus lines tax to that office.
  785  Upon receipt of regular assessments from surplus lines agents,
  786  the Florida Surplus Lines Service Office shall transfer the
  787  assessments directly to the corporation as determined by the
  788  corporation.
  789         c. The corporation may not levy regular assessments under
  790  paragraph (q) pursuant to sub-subparagraph a. or sub
  791  subparagraph b. if the three separate accounts in sub-sub
  792  subparagraphs 2.a.(I)-(III) have been consolidated into the
  793  Citizens account pursuant to sub-subparagraph 2.b. However, the
  794  outstanding balance of any regular assessment levied by the
  795  corporation before establishment of the Citizens account remains
  796  payable to the corporation.
  797         d. After accounting for the Citizens policyholder surcharge
  798  imposed under sub-subparagraph j. i., the remaining projected
  799  deficits in the personal lines account and in the commercial
  800  lines account in a particular calendar year shall be recovered
  801  through emergency assessments under sub-subparagraph e. d.
  802         e.d. Upon a determination by the board of governors that a
  803  projected deficit in an account exceeds the amount that is
  804  expected to be recovered through regular assessments under sub
  805  subparagraph a., plus the amount that is expected to be
  806  recovered through surcharges under sub-subparagraph j. i., the
  807  board, after verification by the office, shall levy emergency
  808  assessments for as many years as necessary to cover the
  809  deficits, to be collected by assessable insurers and the
  810  corporation and collected from assessable insureds upon issuance
  811  or renewal of policies for subject lines of business, excluding
  812  National Flood Insurance policies. The amount collected in a
  813  particular year must be a uniform percentage of that year’s
  814  direct written premium for subject lines of business and all
  815  accounts of the corporation, excluding National Flood Insurance
  816  Program policy premiums, as annually determined by the board and
  817  verified by the office. The office shall verify the arithmetic
  818  calculations involved in the board’s determination within 30
  819  days after receipt of the information on which the determination
  820  was based. The office shall notify assessable insurers and the
  821  Florida Surplus Lines Service Office of the date on which
  822  assessable insurers shall begin to collect and assessable
  823  insureds shall begin to pay such assessment. The date must be at
  824  least 90 days after the date the corporation levies emergency
  825  assessments pursuant to this sub-subparagraph. Notwithstanding
  826  any other provision of law, the corporation and each assessable
  827  insurer that writes subject lines of business shall collect
  828  emergency assessments from its policyholders without such
  829  obligation being affected by any credit, limitation, exemption,
  830  or deferment. Emergency assessments levied by the corporation on
  831  assessable insureds shall be collected by the surplus lines
  832  agent at the time the surplus lines agent collects the surplus
  833  lines tax required by s. 626.932 and paid to the Florida Surplus
  834  Lines Service Office at the time the surplus lines agent pays
  835  the surplus lines tax to that office. The emergency assessments
  836  collected shall be transferred directly to the corporation on a
  837  periodic basis as determined by the corporation and held by the
  838  corporation solely in the applicable account. The aggregate
  839  amount of emergency assessments levied for an account in any
  840  calendar year may be less than but may not exceed the greater of
  841  10 percent of the amount needed to cover the deficit, plus
  842  interest, fees, commissions, required reserves, and other costs
  843  associated with financing the original deficit, or 10 percent of
  844  the aggregate statewide direct written premium for subject lines
  845  of business and all accounts of the corporation for the prior
  846  year, plus interest, fees, commissions, required reserves, and
  847  other costs associated with financing the deficit.
  848         f.e. The corporation may pledge the proceeds of
  849  assessments, projected recoveries from the Florida Hurricane
  850  Catastrophe Fund, other insurance and reinsurance recoverables,
  851  policyholder surcharges and other surcharges, and other funds
  852  available to the corporation as the source of revenue for and to
  853  secure bonds issued under paragraph (q), bonds or other
  854  indebtedness issued under subparagraph (c)3., or lines of credit
  855  or other financing mechanisms issued or created under this
  856  subsection, or to retire any other debt incurred as a result of
  857  deficits or events giving rise to deficits, or in any other way
  858  that the board determines will efficiently recover such
  859  deficits. The purpose of the lines of credit or other financing
  860  mechanisms is to provide additional resources to assist the
  861  corporation in covering claims and expenses attributable to a
  862  catastrophe. As used in this subsection, the term “assessments”
  863  includes regular assessments under sub-subparagraph a. or
  864  subparagraph (q)1. and emergency assessments under sub
  865  subparagraph e. d. Emergency assessments collected under sub
  866  subparagraph e. d. are not part of an insurer’s rates, are not
  867  premium, and are not subject to premium tax, fees, or
  868  commissions; however, failure to pay the emergency assessment
  869  shall be treated as failure to pay premium. The emergency
  870  assessments shall continue as long as any bonds issued or other
  871  indebtedness incurred with respect to a deficit for which the
  872  assessment was imposed remain outstanding, unless adequate
  873  provision has been made for the payment of such bonds or other
  874  indebtedness pursuant to the documents governing such bonds or
  875  indebtedness.
  876         g.f. As used in this subsection for purposes of any deficit
  877  incurred on or after January 25, 2007, the term “subject lines
  878  of business” means insurance written by assessable insurers or
  879  procured by assessable insureds for all property and casualty
  880  lines of business in this state, but not including workers’
  881  compensation or medical malpractice. As used in this sub
  882  subparagraph, the term “property and casualty lines of business”
  883  includes all lines of business identified on Form 2, Exhibit of
  884  Premiums and Losses, in the annual statement required of
  885  authorized insurers under s. 624.424 and any rule adopted under
  886  this section, except for those lines identified as accident and
  887  health insurance and except for policies written under the
  888  National Flood Insurance Program or the Federal Crop Insurance
  889  Program. For purposes of this sub-subparagraph, the term
  890  “workers’ compensation” includes both workers’ compensation
  891  insurance and excess workers’ compensation insurance.
  892         h.g. The Florida Surplus Lines Service Office shall
  893  determine annually the aggregate statewide written premium in
  894  subject lines of business procured by assessable insureds and
  895  report that information to the corporation in a form and at a
  896  time the corporation specifies to ensure that the corporation
  897  can meet the requirements of this subsection and the
  898  corporation’s financing obligations.
  899         i.h. The Florida Surplus Lines Service Office shall verify
  900  the proper application by surplus lines agents of assessment
  901  percentages for regular assessments and emergency assessments
  902  levied under this subparagraph on assessable insureds and assist
  903  the corporation in ensuring the accurate, timely collection and
  904  payment of assessments by surplus lines agents as required by
  905  the corporation.
  906         j.i. Upon determination by the board of governors that an
  907  account has a projected deficit, the board shall levy a Citizens
  908  policyholder surcharge against all policyholders of the
  909  corporation.
  910         (I) The surcharge shall be levied as a uniform percentage
  911  of the premium for the policy of up to 15 percent of such
  912  premium, which funds shall be used to offset the deficit.
  913         (II) The surcharge is payable upon cancellation or
  914  termination of the policy, upon renewal of the policy, or upon
  915  issuance of a new policy by the corporation within the first 12
  916  months after the date of the levy or the period of time
  917  necessary to fully collect the surcharge amount.
  918         (III) The corporation may not levy any regular assessments
  919  under paragraph (q) pursuant to sub-subparagraph a. or sub
  920  subparagraph b. with respect to a particular year’s deficit
  921  until the corporation has first levied the full amount of the
  922  surcharge authorized by this sub-subparagraph.
  923         (IV) The surcharge is not considered premium and is not
  924  subject to commissions, fees, or premium taxes. However, failure
  925  to pay the surcharge shall be treated as failure to pay premium.
  926         k.j. If the amount of any assessments or surcharges
  927  collected from corporation policyholders, assessable insurers or
  928  their policyholders, or assessable insureds exceeds the amount
  929  of the deficits, such excess amounts shall be remitted to and
  930  retained by the corporation in a reserve to be used by the
  931  corporation, as determined by the board of governors and
  932  approved by the office, to pay claims or reduce any past,
  933  present, or future plan-year deficits or to reduce outstanding
  934  debt.
  935         4.The Citizens account, if established by the corporation
  936  pursuant to sub-subparagraph 2.b., is authorized to provide:
  937         a.Personal residential policies that provide
  938  comprehensive, multiperil coverage on risks that are not located
  939  in areas eligible for coverage by the Florida Windstorm
  940  Underwriting Association, as those areas were defined on January
  941  1, 2002, and for policies that do not provide coverage for the
  942  peril of wind on risks that are located in such areas;
  943         b.Commercial residential and commercial nonresidential
  944  policies that provide coverage for basic property perils on
  945  risks that are not located in areas eligible for coverage by the
  946  Florida Windstorm Underwriting Association, as those areas were
  947  defined on January 1, 2002, and for policies that do not provide
  948  coverage for the peril of wind on risks that are located in such
  949  areas; and
  950         c.Personal residential policies and commercial residential
  951  and commercial nonresidential property policies that provide
  952  coverage for the peril of wind on risks that are located in
  953  areas eligible for coverage by the Florida Windstorm
  954  Underwriting Association, as those areas were defined on January
  955  1, 2002. The corporation may offer policies that provide
  956  multiperil coverage and shall offer policies that provide
  957  coverage only for the peril of wind for risks located in areas
  958  eligible for coverage by the Florida Windstorm Underwriting
  959  Association, as those areas were defined on January 1, 2002. The
  960  corporation may not offer new commercial residential policies
  961  providing multiperil coverage, but shall continue to offer
  962  commercial residential wind-only policies, and may offer
  963  commercial residential policies excluding wind. However, the
  964  corporation may continue to renew a commercial residential
  965  multiperil policy on a building that was insured by the
  966  corporation on June 30, 2014, under a multiperil policy. In
  967  issuing multiperil coverage under this sub-subparagraph, the
  968  corporation may use its approved policy forms and rates for
  969  risks located in areas not eligible for coverage by the Florida
  970  Windstorm Underwriting Association as those areas were defined
  971  on January 1, 2002, and for policies that do not provide
  972  coverage for the peril of wind on risks that are located in such
  973  areas. An applicant or insured who is eligible to purchase a
  974  multiperil policy from the corporation may purchase a multiperil
  975  policy from an authorized insurer without prejudice to the
  976  applicant’s or insured’s eligibility to prospectively purchase a
  977  policy that provides coverage only for the peril of wind from
  978  the corporation. An applicant or insured who is eligible for a
  979  corporation policy that provides coverage only for the peril of
  980  wind may elect to purchase or retain such policy and also
  981  purchase or retain coverage excluding wind from an authorized
  982  insurer without prejudice to the applicant’s or insured’s
  983  eligibility to prospectively purchase a policy that provides
  984  multiperil coverage from the corporation. The following
  985  policies, which provide coverage only for the peril of wind,
  986  must also include quota share primary insurance under
  987  subparagraph (c)2.: Personal residential policies and commercial
  988  residential and commercial nonresidential property policies that
  989  provide coverage for the peril of wind on risks that are located
  990  in areas eligible for coverage by the Florida Windstorm
  991  Underwriting Association, as those areas were defined on January
  992  1, 2002; policies that provide multiperil coverage, if offered
  993  by the corporation, and policies that provide coverage only for
  994  the peril of wind for risks located in areas eligible for
  995  coverage by the Florida Windstorm Underwriting Association, as
  996  those areas were defined on January 1, 2002; commercial
  997  residential wind-only policies; commercial residential policies
  998  excluding wind, if offered by the corporation; and commercial
  999  residential multiperil policies on a building that was insured
 1000  by the corporation on June 30, 2014. The area eligible for
 1001  coverage with the corporation under this sub-subparagraph
 1002  includes the area within Port Canaveral, which is bordered on
 1003  the south by the City of Cape Canaveral, bordered on the west by
 1004  the Banana River, and bordered on the north by Federal
 1005  Government property.
 1006         5.With respect to a deficit in the Citizens account:
 1007         a.Upon a determination by the board of governors that the
 1008  Citizens account has a projected deficit, the board shall levy a
 1009  Citizens policyholder surcharge against all policyholders of the
 1010  corporation.
 1011         (I) The surcharge shall be levied as a uniform percentage
 1012  of the premium for the policy of up to 15 percent of such
 1013  premium, which funds shall be used to offset the deficit.
 1014         (II) The surcharge is payable upon cancellation or
 1015  termination of the policy, upon renewal of the policy, or upon
 1016  issuance of a new policy by the corporation within the first 12
 1017  months after the date of the levy or the period of time
 1018  necessary to fully collect the surcharge amount.
 1019         (III)The surcharge is not considered premium and is not
 1020  subject to commissions, fees, or premium taxes. However, failure
 1021  to pay the surcharge shall be treated as failure to pay premium.
 1022         b. After accounting for the Citizens policyholder surcharge
 1023  imposed under sub-subparagraph a., the remaining projected
 1024  deficit incurred in the Citizens account in a particular
 1025  calendar year shall be recovered through emergency assessments
 1026  under sub-subparagraph c.
 1027         c.Upon a determination by the board of governors that a
 1028  projected deficit in the Citizens account exceeds the amount
 1029  that is expected to be recovered through surcharges under sub
 1030  subparagraph a., the board, after verification by the office,
 1031  shall levy emergency assessments for as many years as necessary
 1032  to cover the deficits, to be collected by assessable insurers
 1033  and the corporation and collected from assessable insureds upon
 1034  issuance or renewal of policies for subject lines of business,
 1035  excluding National Flood Insurance Program policies. The amount
 1036  collected in a particular year must be a uniform percentage of
 1037  that year’s direct written premium for subject lines of business
 1038  and the Citizens account, National Flood Insurance Program
 1039  policy premiums, as annually determined by the board and
 1040  verified by the office. The office shall verify the arithmetic
 1041  calculations involved in the board’s determination within 30
 1042  days after receipt of the information on which the determination
 1043  was based. The office shall notify assessable insurers and the
 1044  Florida Surplus Lines Service Office of the date on which
 1045  assessable insurers shall begin to collect and assessable
 1046  insureds shall begin to pay such assessment. The date must be at
 1047  least 90 days after the date the corporation levies emergency
 1048  assessments pursuant to this sub-subparagraph. Notwithstanding
 1049  any other law, the corporation and each assessable insurer that
 1050  writes subject lines of business shall collect emergency
 1051  assessments from its policyholders without such obligation being
 1052  affected by any credit, limitation, exemption, or deferment.
 1053  Emergency assessments levied by the corporation on assessable
 1054  insureds shall be collected by the surplus lines agent at the
 1055  time the surplus lines agent collects the surplus lines tax
 1056  required by s. 626.932 and paid to the Florida Surplus Lines
 1057  Service Office at the time the surplus lines agent pays the
 1058  surplus lines tax to that office. The emergency assessments
 1059  collected shall be transferred directly to the corporation on a
 1060  periodic basis as determined by the corporation and held by the
 1061  corporation solely in the Citizens account. The aggregate amount
 1062  of emergency assessments levied for the Citizens account in any
 1063  calendar year may be less than, but may not exceed the greater
 1064  of, 10 percent of the amount needed to cover the deficit, plus
 1065  interest, fees, commissions, required reserves, and other costs
 1066  associated with financing the original deficit or 10 percent of
 1067  the aggregate statewide direct written premium for subject lines
 1068  of business and the Citizens accounts for the prior year, plus
 1069  interest, fees, commissions, required reserves, and other costs
 1070  associated with financing the deficit.
 1071         d.The corporation may pledge the proceeds of assessments,
 1072  projected recoveries from the Florida Hurricane Catastrophe
 1073  Fund, other insurance and reinsurance recoverables, policyholder
 1074  surcharges and other surcharges, and other funds available to
 1075  the corporation as the source of revenue for and to secure bonds
 1076  issued under paragraph (q), bonds or other indebtedness issued
 1077  under subparagraph (c)3., or lines of credit or other financing
 1078  mechanisms issued or created under this subsection; or to retire
 1079  any other debt incurred as a result of deficits or events giving
 1080  rise to deficits, or in any other way that the board determines
 1081  will efficiently recover such deficits. The purpose of the lines
 1082  of credit or other financing mechanisms is to provide additional
 1083  resources to assist the corporation in covering claims and
 1084  expenses attributable to a catastrophe. As used in this
 1085  subsection, the term “assessments” includes emergency
 1086  assessments under sub-subparagraph c. Emergency assessments
 1087  collected under sub-subparagraph c. are not part of an insurer’s
 1088  rates, are not premium, and are not subject to premium tax,
 1089  fees, or commissions; however, failure to pay the emergency
 1090  assessment shall be treated as failure to pay premium. The
 1091  emergency assessments shall continue as long as any bonds issued
 1092  or other indebtedness incurred with respect to a deficit for
 1093  which the assessment was imposed remain outstanding, unless
 1094  adequate provision has been made for the payment of such bonds
 1095  or other indebtedness pursuant to the documents governing such
 1096  bonds or indebtedness.
 1097         e.As used in this subsection and for purposes of any
 1098  deficit incurred on or after January 25, 2007, the term “subject
 1099  lines of business” means insurance written by assessable
 1100  insurers or procured by assessable insureds for all property and
 1101  casualty lines of business in this state, but not including
 1102  workers’ compensation or medical malpractice. As used in this
 1103  sub-subparagraph, the term “property and casualty lines of
 1104  business” includes all lines of business identified on Form 2,
 1105  Exhibit of Premiums and Losses, in the annual statement required
 1106  of authorized insurers under s. 624.424 and any rule adopted
 1107  under this section, except for those lines identified as
 1108  accident and health insurance and except for policies written
 1109  under the National Flood Insurance Program or the Federal Crop
 1110  Insurance Program. For purposes of this sub-subparagraph, the
 1111  term “workers’ compensation” includes both workers’ compensation
 1112  insurance and excess workers’ compensation insurance.
 1113         f.The Florida Surplus Lines Service Office shall annually
 1114  determine the aggregate statewide written premium in subject
 1115  lines of business procured by assessable insureds and report
 1116  that information to the corporation in a form and at a time the
 1117  corporation specifies to ensure that the corporation can meet
 1118  the requirements of this subsection and the corporation’s
 1119  financing obligations.
 1120         g.The Florida Surplus Lines Service Office shall verify
 1121  the proper application by surplus lines agents of assessment
 1122  percentages for emergency assessments levied under this
 1123  subparagraph on assessable insureds and assist the corporation
 1124  in ensuring the accurate, timely collection and payment of
 1125  assessments by surplus lines agents as required by the
 1126  corporation.
 1127         h.If the amount of any assessments or surcharges collected
 1128  from corporation policyholders, assessable insurers or their
 1129  policyholders, or assessable insureds exceeds the amount of the
 1130  deficits, such excess amounts shall be remitted to and retained
 1131  by the corporation in a reserve to be used by the corporation,
 1132  as determined by the board of governors and approved by the
 1133  office, to pay claims or reduce any past, present, or future
 1134  plan-year deficits or to reduce outstanding debt.
 1135         (c) The corporation’s plan of operation:
 1136         1. Must provide for adoption of residential property and
 1137  casualty insurance policy forms and commercial residential and
 1138  nonresidential property insurance forms, which must be approved
 1139  by the office before use. The corporation shall adopt the
 1140  following policy forms:
 1141         a. Standard personal lines policy forms that are
 1142  comprehensive multiperil policies providing full coverage of a
 1143  residential property equivalent to the coverage provided in the
 1144  private insurance market under an HO-3, HO-4, or HO-6 policy.
 1145         b. Basic personal lines policy forms that are policies
 1146  similar to an HO-8 policy or a dwelling fire policy that provide
 1147  coverage meeting the requirements of the secondary mortgage
 1148  market, but which is more limited than the coverage under a
 1149  standard policy.
 1150         c. Commercial lines residential and nonresidential policy
 1151  forms that are generally similar to the basic perils of full
 1152  coverage obtainable for commercial residential structures and
 1153  commercial nonresidential structures in the admitted voluntary
 1154  market.
 1155         d. Personal lines and commercial lines residential property
 1156  insurance forms that cover the peril of wind only. The forms are
 1157  applicable only to residential properties located in areas
 1158  eligible for coverage by the Florida Windstorm Underwriting
 1159  Association, as those areas were defined on January 1, 2002
 1160  under the coastal account referred to in sub-subparagraph
 1161  (b)2.a.
 1162         e. Commercial lines nonresidential property insurance forms
 1163  that cover the peril of wind only. The forms are applicable only
 1164  to nonresidential properties located in areas eligible for
 1165  coverage by the Florida Windstorm Underwriting Association, as
 1166  those areas were defined on January 1, 2002 under the coastal
 1167  account referred to in sub-subparagraph (b)2.a.
 1168         f. The corporation may adopt variations of the policy forms
 1169  listed in sub-subparagraphs a.-e. which contain more restrictive
 1170  coverage.
 1171         g. Effective January 1, 2013, The corporation shall offer a
 1172  basic personal lines policy similar to an HO-8 policy with
 1173  dwelling repair based on common construction materials and
 1174  methods.
 1175         2. Must provide that the corporation adopt a program in
 1176  which the corporation and authorized insurers enter into quota
 1177  share primary insurance agreements for hurricane coverage, as
 1178  defined in s. 627.4025(2)(a), for eligible risks, and adopt
 1179  property insurance forms for eligible risks which cover the
 1180  peril of wind only.
 1181         a. As used in this subsection, the term:
 1182         (I) “Quota share primary insurance” means an arrangement in
 1183  which the primary hurricane coverage of an eligible risk is
 1184  provided in specified percentages by the corporation and an
 1185  authorized insurer. The corporation and authorized insurer are
 1186  each solely responsible for a specified percentage of hurricane
 1187  coverage of an eligible risk as set forth in a quota share
 1188  primary insurance agreement between the corporation and an
 1189  authorized insurer and the insurance contract. The
 1190  responsibility of the corporation or authorized insurer to pay
 1191  its specified percentage of hurricane losses of an eligible
 1192  risk, as set forth in the agreement, may not be altered by the
 1193  inability of the other party to pay its specified percentage of
 1194  losses. Eligible risks that are provided hurricane coverage
 1195  through a quota share primary insurance arrangement must be
 1196  provided policy forms that set forth the obligations of the
 1197  corporation and authorized insurer under the arrangement,
 1198  clearly specify the percentages of quota share primary insurance
 1199  provided by the corporation and authorized insurer, and
 1200  conspicuously and clearly state that the authorized insurer and
 1201  the corporation may not be held responsible beyond their
 1202  specified percentage of coverage of hurricane losses.
 1203         (II) “Eligible risks” means personal lines residential and
 1204  commercial lines residential risks that meet the underwriting
 1205  criteria of the corporation and are located in areas that were
 1206  eligible for coverage by the Florida Windstorm Underwriting
 1207  Association on January 1, 2002.
 1208         b. The corporation may enter into quota share primary
 1209  insurance agreements with authorized insurers at corporation
 1210  coverage levels of 90 percent and 50 percent.
 1211         c. If the corporation determines that additional coverage
 1212  levels are necessary to maximize participation in quota share
 1213  primary insurance agreements by authorized insurers, the
 1214  corporation may establish additional coverage levels. However,
 1215  the corporation’s quota share primary insurance coverage level
 1216  may not exceed 90 percent.
 1217         d. Any quota share primary insurance agreement entered into
 1218  between an authorized insurer and the corporation must provide
 1219  for a uniform specified percentage of coverage of hurricane
 1220  losses, by county or territory as set forth by the corporation
 1221  board, for all eligible risks of the authorized insurer covered
 1222  under the agreement.
 1223         e. Any quota share primary insurance agreement entered into
 1224  between an authorized insurer and the corporation is subject to
 1225  review and approval by the office. However, such agreement shall
 1226  be authorized only as to insurance contracts entered into
 1227  between an authorized insurer and an insured who is already
 1228  insured by the corporation for wind coverage.
 1229         f. For all eligible risks covered under quota share primary
 1230  insurance agreements, the exposure and coverage levels for both
 1231  the corporation and authorized insurers shall be reported by the
 1232  corporation to the Florida Hurricane Catastrophe Fund. For all
 1233  policies of eligible risks covered under such agreements, the
 1234  corporation and the authorized insurer must maintain complete
 1235  and accurate records for the purpose of exposure and loss
 1236  reimbursement audits as required by fund rules. The corporation
 1237  and the authorized insurer shall each maintain duplicate copies
 1238  of policy declaration pages and supporting claims documents.
 1239         g. The corporation board shall establish in its plan of
 1240  operation standards for quota share agreements which ensure that
 1241  there is no discriminatory application among insurers as to the
 1242  terms of the agreements, pricing of the agreements, incentive
 1243  provisions if any, and consideration paid for servicing policies
 1244  or adjusting claims.
 1245         h. The quota share primary insurance agreement between the
 1246  corporation and an authorized insurer must set forth the
 1247  specific terms under which coverage is provided, including, but
 1248  not limited to, the sale and servicing of policies issued under
 1249  the agreement by the insurance agent of the authorized insurer
 1250  producing the business, the reporting of information concerning
 1251  eligible risks, the payment of premium to the corporation, and
 1252  arrangements for the adjustment and payment of hurricane claims
 1253  incurred on eligible risks by the claims adjuster and personnel
 1254  of the authorized insurer. Entering into a quota sharing
 1255  insurance agreement between the corporation and an authorized
 1256  insurer is voluntary and at the discretion of the authorized
 1257  insurer.
 1258         3. May provide that the corporation may employ or otherwise
 1259  contract with individuals or other entities to provide
 1260  administrative or professional services that may be appropriate
 1261  to effectuate the plan. The corporation may borrow funds by
 1262  issuing bonds or by incurring other indebtedness, and shall have
 1263  other powers reasonably necessary to effectuate the requirements
 1264  of this subsection, including, without limitation, the power to
 1265  issue bonds and incur other indebtedness in order to refinance
 1266  outstanding bonds or other indebtedness. The corporation may
 1267  seek judicial validation of its bonds or other indebtedness
 1268  under chapter 75. The corporation may issue bonds or incur other
 1269  indebtedness, or have bonds issued on its behalf by a unit of
 1270  local government pursuant to subparagraph (q)2. in the absence
 1271  of a hurricane or other weather-related event, upon a
 1272  determination by the corporation, subject to approval by the
 1273  office, that such action would enable it to efficiently meet the
 1274  financial obligations of the corporation and that such
 1275  financings are reasonably necessary to effectuate the
 1276  requirements of this subsection. The corporation may take all
 1277  actions needed to facilitate tax-free status for such bonds or
 1278  indebtedness, including formation of trusts or other affiliated
 1279  entities. The corporation may pledge assessments, projected
 1280  recoveries from the Florida Hurricane Catastrophe Fund, other
 1281  reinsurance recoverables, policyholder surcharges and other
 1282  surcharges, and other funds available to the corporation as
 1283  security for bonds or other indebtedness. In recognition of s.
 1284  10, Art. I of the State Constitution, prohibiting the impairment
 1285  of obligations of contracts, it is the intent of the Legislature
 1286  that no action be taken whose purpose is to impair any bond
 1287  indenture or financing agreement or any revenue source committed
 1288  by contract to such bond or other indebtedness.
 1289         4. Must require that the corporation operate subject to the
 1290  supervision and approval of a board of governors consisting of
 1291  nine individuals who are residents of this state and who are
 1292  from different geographical areas of the state, one of whom is
 1293  appointed by the Governor and serves solely to advocate on
 1294  behalf of the consumer. The appointment of a consumer
 1295  representative by the Governor is deemed to be within the scope
 1296  of the exemption provided in s. 112.313(7)(b) and is in addition
 1297  to the appointments authorized under sub-subparagraph a.
 1298         a. The Governor, the Chief Financial Officer, the President
 1299  of the Senate, and the Speaker of the House of Representatives
 1300  shall each appoint two members of the board. At least one of the
 1301  two members appointed by each appointing officer must have
 1302  demonstrated expertise in insurance and be deemed to be within
 1303  the scope of the exemption provided in s. 112.313(7)(b). The
 1304  Chief Financial Officer shall designate one of the appointees as
 1305  chair. All board members serve at the pleasure of the appointing
 1306  officer. All members of the board are subject to removal at will
 1307  by the officers who appointed them. All board members, including
 1308  the chair, must be appointed to serve for 3-year terms beginning
 1309  annually on a date designated by the plan. However, for the
 1310  first term beginning on or after July 1, 2009, each appointing
 1311  officer shall appoint one member of the board for a 2-year term
 1312  and one member for a 3-year term. A board vacancy shall be
 1313  filled for the unexpired term by the appointing officer. The
 1314  Chief Financial Officer shall appoint a technical advisory group
 1315  to provide information and advice to the board in connection
 1316  with the board’s duties under this subsection. The executive
 1317  director and senior managers of the corporation shall be engaged
 1318  by the board and serve at the pleasure of the board. Any
 1319  executive director appointed on or after July 1, 2006, is
 1320  subject to confirmation by the Senate. The executive director is
 1321  responsible for employing other staff as the corporation may
 1322  require, subject to review and concurrence by the board.
 1323         b. The board shall create a Market Accountability Advisory
 1324  Committee to assist the corporation in developing awareness of
 1325  its rates and its customer and agent service levels in
 1326  relationship to the voluntary market insurers writing similar
 1327  coverage.
 1328         (I) The members of the advisory committee consist of the
 1329  following 11 persons, one of whom must be elected chair by the
 1330  members of the committee: four representatives, one appointed by
 1331  the Florida Association of Insurance Agents, one by the Florida
 1332  Association of Insurance and Financial Advisors, one by the
 1333  Professional Insurance Agents of Florida, and one by the Latin
 1334  American Association of Insurance Agencies; three
 1335  representatives appointed by the insurers with the three highest
 1336  voluntary market share of residential property insurance
 1337  business in the state; one representative from the Office of
 1338  Insurance Regulation; one consumer appointed by the board who is
 1339  insured by the corporation at the time of appointment to the
 1340  committee; one representative appointed by the Florida
 1341  Association of Realtors; and one representative appointed by the
 1342  Florida Bankers Association. All members shall be appointed to
 1343  3-year terms and may serve for consecutive terms.
 1344         (II) The committee shall report to the corporation at each
 1345  board meeting on insurance market issues which may include rates
 1346  and rate competition with the voluntary market; service,
 1347  including policy issuance, claims processing, and general
 1348  responsiveness to policyholders, applicants, and agents; and
 1349  matters relating to depopulation.
 1350         5. Must provide a procedure for determining the eligibility
 1351  of a risk for coverage, as follows:
 1352         a. Subject to s. 627.3517, with respect to personal lines
 1353  residential risks, if the risk is offered coverage from an
 1354  authorized insurer at the insurer’s approved rate under a
 1355  standard policy including wind coverage or, if consistent with
 1356  the insurer’s underwriting rules as filed with the office, a
 1357  basic policy including wind coverage, for a new application to
 1358  the corporation for coverage, the risk is not eligible for any
 1359  policy issued by the corporation unless the premium for coverage
 1360  from the authorized insurer is more than 20 percent greater than
 1361  the premium for comparable coverage from the corporation.
 1362  Whenever an offer of coverage for a personal lines residential
 1363  risk is received for a policyholder of the corporation at
 1364  renewal from an authorized insurer, if the offer is equal to or
 1365  less than the corporation’s renewal premium for comparable
 1366  coverage, the risk is not eligible for coverage with the
 1367  corporation for policies that renew before April 1, 2023; for
 1368  policies that renew on or after that date, the risk is not
 1369  eligible for coverage with the corporation unless the premium
 1370  for coverage from the authorized insurer is more than 20 percent
 1371  greater than the corporation’s renewal premium for comparable
 1372  coverage. If the risk is not able to obtain such offer, the risk
 1373  is eligible for a standard policy including wind coverage or a
 1374  basic policy including wind coverage issued by the corporation;
 1375  however, if the risk could not be insured under a standard
 1376  policy including wind coverage regardless of market conditions,
 1377  the risk is eligible for a basic policy including wind coverage
 1378  unless rejected under subparagraph 8. However, a policyholder
 1379  removed from the corporation through an assumption agreement
 1380  remains eligible for coverage from the corporation until the end
 1381  of the assumption period. The corporation shall determine the
 1382  type of policy to be provided on the basis of objective
 1383  standards specified in the underwriting manual and based on
 1384  generally accepted underwriting practices. A policyholder
 1385  removed from the corporation through an assumption agreement
 1386  does not remain eligible for coverage from the corporation after
 1387  the end of the policy term. However, any policy removed from the
 1388  corporation through an assumption agreement remains on the
 1389  corporation’s policy forms through the end of the policy term.
 1390         (I) If the risk accepts an offer of coverage through the
 1391  market assistance plan or through a mechanism established by the
 1392  corporation other than a plan established by s. 627.3518, before
 1393  a policy is issued to the risk by the corporation or during the
 1394  first 30 days of coverage by the corporation, and the producing
 1395  agent who submitted the application to the plan or to the
 1396  corporation is not currently appointed by the insurer, the
 1397  insurer shall:
 1398         (A) Pay to the producing agent of record of the policy for
 1399  the first year, an amount that is the greater of the insurer’s
 1400  usual and customary commission for the type of policy written or
 1401  a fee equal to the usual and customary commission of the
 1402  corporation; or
 1403         (B) Offer to allow the producing agent of record of the
 1404  policy to continue servicing the policy for at least 1 year and
 1405  offer to pay the agent the greater of the insurer’s or the
 1406  corporation’s usual and customary commission for the type of
 1407  policy written.
 1408  
 1409  If the producing agent is unwilling or unable to accept
 1410  appointment, the new insurer shall pay the agent in accordance
 1411  with sub-sub-sub-subparagraph (A).
 1412         (II) If the corporation enters into a contractual agreement
 1413  for a take-out plan, the producing agent of record of the
 1414  corporation policy is entitled to retain any unearned commission
 1415  on the policy, and the insurer shall:
 1416         (A) Pay to the producing agent of record, for the first
 1417  year, an amount that is the greater of the insurer’s usual and
 1418  customary commission for the type of policy written or a fee
 1419  equal to the usual and customary commission of the corporation;
 1420  or
 1421         (B) Offer to allow the producing agent of record to
 1422  continue servicing the policy for at least 1 year and offer to
 1423  pay the agent the greater of the insurer’s or the corporation’s
 1424  usual and customary commission for the type of policy written.
 1425  
 1426  If the producing agent is unwilling or unable to accept
 1427  appointment, the new insurer shall pay the agent in accordance
 1428  with sub-sub-sub-subparagraph (A).
 1429         b. With respect to commercial lines residential risks, for
 1430  a new application to the corporation for coverage, if the risk
 1431  is offered coverage under a policy including wind coverage from
 1432  an authorized insurer at its approved rate, the risk is not
 1433  eligible for a policy issued by the corporation unless the
 1434  premium for coverage from the authorized insurer is more than 20
 1435  15 percent greater than the premium for comparable coverage from
 1436  the corporation. Whenever an offer of coverage for a commercial
 1437  lines residential risk is received for a policyholder of the
 1438  corporation at renewal from an authorized insurer, if the offer
 1439  is equal to or less than the corporation’s renewal premium for
 1440  comparable coverage, the risk is not eligible for coverage with
 1441  the corporation unless the premium for coverage from the
 1442  authorized insurer is more than 20 percent greater than the
 1443  corporation’s renewal premium for comparable coverage. If the
 1444  risk is not able to obtain any such offer, the risk is eligible
 1445  for a policy including wind coverage issued by the corporation.
 1446  However, A policyholder removed from the corporation through an
 1447  assumption agreement remains eligible for coverage from the
 1448  corporation until the end of the policy term. However, any
 1449  policy removed from the corporation through an assumption
 1450  agreement remains on the corporation’s policy forms through the
 1451  end of the policy term assumption period.
 1452         (I) If the risk accepts an offer of coverage through the
 1453  market assistance plan or through a mechanism established by the
 1454  corporation other than a plan established by s. 627.3518, before
 1455  a policy is issued to the risk by the corporation or during the
 1456  first 30 days of coverage by the corporation, and the producing
 1457  agent who submitted the application to the plan or the
 1458  corporation is not currently appointed by the insurer, the
 1459  insurer shall:
 1460         (A) Pay to the producing agent of record of the policy, for
 1461  the first year, an amount that is the greater of the insurer’s
 1462  usual and customary commission for the type of policy written or
 1463  a fee equal to the usual and customary commission of the
 1464  corporation; or
 1465         (B) Offer to allow the producing agent of record of the
 1466  policy to continue servicing the policy for at least 1 year and
 1467  offer to pay the agent the greater of the insurer’s or the
 1468  corporation’s usual and customary commission for the type of
 1469  policy written.
 1470  
 1471  If the producing agent is unwilling or unable to accept
 1472  appointment, the new insurer shall pay the agent in accordance
 1473  with sub-sub-sub-subparagraph (A).
 1474         (II) If the corporation enters into a contractual agreement
 1475  for a take-out plan, the producing agent of record of the
 1476  corporation policy is entitled to retain any unearned commission
 1477  on the policy, and the insurer shall:
 1478         (A) Pay to the producing agent of record, for the first
 1479  year, an amount that is the greater of the insurer’s usual and
 1480  customary commission for the type of policy written or a fee
 1481  equal to the usual and customary commission of the corporation;
 1482  or
 1483         (B) Offer to allow the producing agent of record to
 1484  continue servicing the policy for at least 1 year and offer to
 1485  pay the agent the greater of the insurer’s or the corporation’s
 1486  usual and customary commission for the type of policy written.
 1487  
 1488  If the producing agent is unwilling or unable to accept
 1489  appointment, the new insurer shall pay the agent in accordance
 1490  with sub-sub-sub-subparagraph (A).
 1491         c. For purposes of determining comparable coverage under
 1492  sub-subparagraphs a. and b., the comparison must be based on
 1493  those forms and coverages that are reasonably comparable. The
 1494  corporation may rely on a determination of comparable coverage
 1495  and premium made by the producing agent who submits the
 1496  application to the corporation, made in the agent’s capacity as
 1497  the corporation’s agent. For purposes of comparing the premium
 1498  for comparable coverage under sub-subparagraphs a. and b.,
 1499  premium includes any surcharge or assessment that is actually
 1500  applied to such policy. A comparison may be made solely of the
 1501  premium with respect to the main building or structure only on
 1502  the following basis: the same coverage A or other building
 1503  limits; the same percentage hurricane deductible that applies on
 1504  an annual basis or that applies to each hurricane for commercial
 1505  residential property; the same percentage of ordinance and law
 1506  coverage, if the same limit is offered by both the corporation
 1507  and the authorized insurer; the same mitigation credits, to the
 1508  extent the same types of credits are offered both by the
 1509  corporation and the authorized insurer; the same method for loss
 1510  payment, such as replacement cost or actual cash value, if the
 1511  same method is offered both by the corporation and the
 1512  authorized insurer in accordance with underwriting rules; and
 1513  any other form or coverage that is reasonably comparable as
 1514  determined by the board. If an application is submitted to the
 1515  corporation for wind-only coverage on a risk that is located in
 1516  an area eligible for coverage by the Florida Windstorm
 1517  Underwriting Association, as that area was defined on January 1,
 1518  2002 in the coastal account, the premium for the corporation’s
 1519  wind-only policy plus the premium for the ex-wind policy that is
 1520  offered by an authorized insurer to the applicant must be
 1521  compared to the premium for multiperil coverage offered by an
 1522  authorized insurer, subject to the standards for comparison
 1523  specified in this subparagraph. If the corporation or the
 1524  applicant requests from the authorized insurer a breakdown of
 1525  the premium of the offer by types of coverage so that a
 1526  comparison may be made by the corporation or its agent and the
 1527  authorized insurer refuses or is unable to provide such
 1528  information, the corporation may treat the offer as not being an
 1529  offer of coverage from an authorized insurer at the insurer’s
 1530  approved rate.
 1531         6. Must include rules for classifications of risks and
 1532  rates.
 1533         7. Must provide that if premium and investment income:
 1534         a. For an account attributable to a particular calendar
 1535  year are in excess of projected losses and expenses for the
 1536  account attributable to that year, such excess shall be held in
 1537  surplus in the account. Such surplus must be available to defray
 1538  deficits in that account as to future years and used for that
 1539  purpose before assessing assessable insurers and assessable
 1540  insureds as to any calendar year; or
 1541         b.For the Citizens account, if established by the
 1542  corporation, which are attributable to a particular calendar
 1543  year are in excess of projected losses and expenses for the
 1544  Citizens account attributable to that year, such excess shall be
 1545  held in surplus in the Citizens account. Such surplus must be
 1546  available to defray deficits in the Citizens account as to
 1547  future years and used for that purpose before assessing
 1548  assessable insurers and assessable insureds as to any calendar
 1549  year.
 1550         8. Must provide objective criteria and procedures to be
 1551  uniformly applied to all applicants in determining whether an
 1552  individual risk is so hazardous as to be uninsurable. In making
 1553  this determination and in establishing the criteria and
 1554  procedures, the following must be considered:
 1555         a. Whether the likelihood of a loss for the individual risk
 1556  is substantially higher than for other risks of the same class;
 1557  and
 1558         b. Whether the uncertainty associated with the individual
 1559  risk is such that an appropriate premium cannot be determined.
 1560  
 1561  The acceptance or rejection of a risk by the corporation shall
 1562  be construed as the private placement of insurance, and the
 1563  provisions of chapter 120 do not apply.
 1564         9. Must provide that the corporation make its best efforts
 1565  to procure catastrophe reinsurance at reasonable rates, to cover
 1566  its projected 100-year probable maximum loss as determined by
 1567  the board of governors. If catastrophe reinsurance is not
 1568  available at reasonable rates, the corporation need not purchase
 1569  it, but the corporation shall include the costs of reinsurance
 1570  to cover its projected 100-year probable maximum loss in its
 1571  rate calculations even if it does not purchase catastrophe
 1572  reinsurance.
 1573         10. The policies issued by the corporation must provide
 1574  that if the corporation or the market assistance plan obtains an
 1575  offer from an authorized insurer to cover the risk at its
 1576  approved rates, the risk is no longer eligible for renewal
 1577  through the corporation, except as otherwise provided in this
 1578  subsection.
 1579         11. Corporation policies and applications must include a
 1580  notice that the corporation policy could, under this section, be
 1581  replaced with a policy issued by an authorized insurer which
 1582  does not provide coverage identical to the coverage provided by
 1583  the corporation. The notice must also specify that acceptance of
 1584  corporation coverage creates a conclusive presumption that the
 1585  applicant or policyholder is aware of this potential.
 1586         12. May establish, subject to approval by the office,
 1587  different eligibility requirements and operational procedures
 1588  for any line or type of coverage for any specified county or
 1589  area if the board determines that such changes are justified due
 1590  to the voluntary market being sufficiently stable and
 1591  competitive in such area or for such line or type of coverage
 1592  and that consumers who, in good faith, are unable to obtain
 1593  insurance through the voluntary market through ordinary methods
 1594  continue to have access to coverage from the corporation. If
 1595  coverage is sought in connection with a real property transfer,
 1596  the requirements and procedures may not provide an effective
 1597  date of coverage later than the date of the closing of the
 1598  transfer as established by the transferor, the transferee, and,
 1599  if applicable, the lender.
 1600         13. Must provide that:,
 1601         a. With respect to the coastal account, any assessable
 1602  insurer with a surplus as to policyholders of $25 million or
 1603  less writing 25 percent or more of its total countrywide
 1604  property insurance premiums in this state may petition the
 1605  office, within the first 90 days of each calendar year, to
 1606  qualify as a limited apportionment company. A regular assessment
 1607  levied by the corporation on a limited apportionment company for
 1608  a deficit incurred by the corporation for the coastal account
 1609  may be paid to the corporation on a monthly basis as the
 1610  assessments are collected by the limited apportionment company
 1611  from its insureds, but a limited apportionment company must
 1612  begin collecting the regular assessments not later than 90 days
 1613  after the regular assessments are levied by the corporation, and
 1614  the regular assessments must be paid in full within 15 months
 1615  after being levied by the corporation. A limited apportionment
 1616  company shall collect from its policyholders any emergency
 1617  assessment imposed under sub-subparagraph (b)3.e. (b)3.d. The
 1618  plan must provide that, if the office determines that any
 1619  regular assessment will result in an impairment of the surplus
 1620  of a limited apportionment company, the office may direct that
 1621  all or part of such assessment be deferred as provided in
 1622  subparagraph (q)4. However, an emergency assessment to be
 1623  collected from policyholders under sub-subparagraph (b)3.e.
 1624  (b)3.d. may not be limited or deferred; or
 1625         b.With respect to the Citizens account, if established by
 1626  the corporation pursuant to sub-subparagraph (b)2.b., any
 1627  assessable insurer with a surplus as to policyholders of $25
 1628  million or less and writing 25 percent or more of its total
 1629  countrywide property insurance premiums in this state may
 1630  petition the office, within the first 90 days of each calendar
 1631  year, to qualify as a limited apportionment company. A limited
 1632  apportionment company shall collect from its policyholders any
 1633  emergency assessment imposed under sub-subparagraph (b)5.c. An
 1634  emergency assessment to be collected from policyholders under
 1635  sub-subparagraph (b)5.c. may not be limited or deferred.
 1636         14. Must provide that the corporation appoint as its
 1637  licensed agents only those agents who throughout such
 1638  appointments also hold an appointment as defined in s. 626.015
 1639  by an insurer who is authorized to write and is actually writing
 1640  or renewing personal lines residential property coverage,
 1641  commercial residential property coverage, or commercial
 1642  nonresidential property coverage within the state.
 1643         15. Must provide a premium payment plan option to its
 1644  policyholders which, at a minimum, allows for quarterly and
 1645  semiannual payment of premiums. A monthly payment plan may, but
 1646  is not required to, be offered.
 1647         16. Must limit coverage on mobile homes or manufactured
 1648  homes built before 1994 to actual cash value of the dwelling
 1649  rather than replacement costs of the dwelling.
 1650         17. Must provide coverage for manufactured or mobile home
 1651  dwellings. Such coverage must also include the following
 1652  attached structures:
 1653         a. Screened enclosures that are aluminum framed or screened
 1654  enclosures that are not covered by the same or substantially the
 1655  same materials as those of the primary dwelling;
 1656         b. Carports that are aluminum or carports that are not
 1657  covered by the same or substantially the same materials as those
 1658  of the primary dwelling; and
 1659         c. Patios that have a roof covering that is constructed of
 1660  materials that are not the same or substantially the same
 1661  materials as those of the primary dwelling.
 1662  
 1663  The corporation shall make available a policy for mobile homes
 1664  or manufactured homes for a minimum insured value of at least
 1665  $3,000.
 1666         18. May provide such limits of coverage as the board
 1667  determines, consistent with the requirements of this subsection.
 1668         19. May require commercial property to meet specified
 1669  hurricane mitigation construction features as a condition of
 1670  eligibility for coverage.
 1671         20. Must provide that new or renewal policies issued by the
 1672  corporation on or after January 1, 2012, which cover sinkhole
 1673  loss do not include coverage for any loss to appurtenant
 1674  structures, driveways, sidewalks, decks, or patios that are
 1675  directly or indirectly caused by sinkhole activity. The
 1676  corporation shall exclude such coverage using a notice of
 1677  coverage change, which may be included with the policy renewal,
 1678  and not by issuance of a notice of nonrenewal of the excluded
 1679  coverage upon renewal of the current policy.
 1680         21.a. As of January 1, 2012, unless the Citizens account
 1681  has been established pursuant to sub-subparagraph (b)2.b., must
 1682  require that the agent obtain from an applicant for coverage
 1683  from the corporation an acknowledgment signed by the applicant,
 1684  which includes, at a minimum, the following statement:
 1685  
 1686                ACKNOWLEDGMENT OF POTENTIAL SURCHARGE              
 1687                      AND ASSESSMENT LIABILITY:                    
 1688  
 1689         1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
 1690  CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
 1691  DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
 1692  MY POLICY COULD BE SUBJECT TO SURCHARGES, WHICH WILL BE DUE AND
 1693  PAYABLE UPON RENEWAL, CANCELLATION, OR TERMINATION OF THE
 1694  POLICY, AND THAT THE SURCHARGES COULD BE AS HIGH AS 45 PERCENT
 1695  OF MY PREMIUM, OR A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA
 1696  LEGISLATURE.
 1697         2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
 1698  SURCHARGE, WHICH COULD BE AS HIGH AS 45 PERCENT OF MY PREMIUM,
 1699  BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND THAT TO
 1700  BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN
 1701  PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR RENEWING COVERAGE
 1702  WITH CITIZENS. I UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES
 1703  ARE REGULATED AND APPROVED BY THE STATE.
 1704         3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
 1705  ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
 1706  INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
 1707  FLORIDA LEGISLATURE.
 1708         4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
 1709  CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
 1710  STATE OF FLORIDA.
 1711  
 1712         b.The corporation must require, if it has established the
 1713  Citizens account pursuant to sub-subparagraph (b)2.b., that the
 1714  agent obtain from an applicant for coverage from the corporation
 1715  the following acknowledgment signed by the applicant, which
 1716  includes, at a minimum, the following statement:
 1717  
 1718                ACKNOWLEDGMENT OF POTENTIAL SURCHARGE              
 1719                      AND ASSESSMENT LIABILITY:                    
 1720  
 1721         1.AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
 1722  CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
 1723  DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
 1724  MY POLICY COULD BE SUBJECT TO SURCHARGES AND ASSESSMENTS, WHICH
 1725  WILL BE DUE AND PAYABLE UPON RENEWAL, CANCELLATION, OR
 1726  TERMINATION OF THE POLICY, AND THAT THE SURCHARGES AND
 1727  ASSESSMENTS COULD BE AS HIGH AS 25 PERCENT OF MY PREMIUM, OR A
 1728  DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA LEGISLATURE.
 1729         2.I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
 1730  SURCHARGE, WHICH COULD BE AS HIGH AS 15 PERCENT OF MY PREMIUM,
 1731  BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND THAT TO
 1732  BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN
 1733  PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR RENEWING COVERAGE
 1734  WITH CITIZENS. I UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES
 1735  ARE REGULATED AND APPROVED BY THE STATE.
 1736         3.I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
 1737  ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
 1738  INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
 1739  FLORIDA LEGISLATURE.
 1740         4.I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
 1741  CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
 1742  STATE OF FLORIDA.
 1743  
 1744         c.a. The corporation shall maintain, in electronic format
 1745  or otherwise, a copy of the applicant’s signed acknowledgment
 1746  and provide a copy of the statement to the policyholder as part
 1747  of the first renewal after the effective date of sub
 1748  subparagraph a. or sub-subparagraph b., as applicable this
 1749  subparagraph.
 1750         d.b. The signed acknowledgment form creates a conclusive
 1751  presumption that the policyholder understood and accepted his or
 1752  her potential surcharge and assessment liability as a
 1753  policyholder of the corporation.
 1754         (n)1. Rates for coverage provided by the corporation must
 1755  be actuarially sound pursuant and subject to s. 627.062 and not
 1756  competitive with approved rates charged in the admitted
 1757  voluntary market so that the corporation functions as a residual
 1758  market mechanism to provide insurance only when insurance cannot
 1759  be procured in the voluntary market, except as otherwise
 1760  provided in this paragraph. The office shall provide the
 1761  corporation such information as would be necessary to determine
 1762  whether rates are competitive. The corporation shall file its
 1763  recommended rates with the office at least annually. The
 1764  corporation shall provide any additional information regarding
 1765  the rates which the office requires. The office shall consider
 1766  the recommendations of the board and issue a final order
 1767  establishing the rates for the corporation within 45 days after
 1768  the recommended rates are filed. The corporation may not pursue
 1769  an administrative challenge or judicial review of the final
 1770  order of the office.
 1771         2. In addition to the rates otherwise determined pursuant
 1772  to this paragraph, the corporation shall impose and collect an
 1773  amount equal to the premium tax provided in s. 624.509 to
 1774  augment the financial resources of the corporation.
 1775         3. After the public hurricane loss-projection model under
 1776  s. 627.06281 has been found to be accurate and reliable by the
 1777  Florida Commission on Hurricane Loss Projection Methodology, the
 1778  model shall be considered when establishing the windstorm
 1779  portion of the corporation’s rates. The corporation may use the
 1780  public model results in combination with the results of private
 1781  models to calculate rates for the windstorm portion of the
 1782  corporation’s rates. This subparagraph does not require or allow
 1783  the corporation to adopt rates lower than the rates otherwise
 1784  required or allowed by this paragraph.
 1785         4. The corporation must make a recommended actuarially
 1786  sound rate filing for each personal and commercial line of
 1787  business it writes.
 1788         5. Notwithstanding the board’s recommended rates and the
 1789  office’s final order regarding the corporation’s filed rates
 1790  under subparagraph 1., the corporation shall annually implement
 1791  a rate increase which, except for sinkhole coverage, does not
 1792  exceed the following for any single policy issued by the
 1793  corporation, excluding coverage changes and surcharges:
 1794         a. Eleven percent for 2022.
 1795         b. Twelve percent for 2023.
 1796         b.c. Thirteen percent for 2024.
 1797         c.d. Fourteen percent for 2025.
 1798         d.e. Fifteen percent for 2026 and all subsequent years.
 1799         6. The corporation may also implement an increase to
 1800  reflect the effect on the corporation of the cash buildup factor
 1801  pursuant to s. 215.555(5)(b).
 1802         7. The corporation’s implementation of rates as prescribed
 1803  in subparagraphs 5. and 8. subparagraph 5. shall cease for any
 1804  line of business written by the corporation upon the
 1805  corporation’s implementation of actuarially sound rates.
 1806  Thereafter, the corporation shall annually make a recommended
 1807  actuarially sound rate filing that is not competitive with
 1808  approved rates in the admitted voluntary market for each
 1809  commercial and personal line of business the corporation writes.
 1810         8.For any new or renewal personal lines policy written on
 1811  or after November 1, 2023, which does not cover a primary
 1812  residence, the rate to be applied in calculating premium is not
 1813  subject to the rate increase limitations in subparagraph 5.
 1814  However, the policyholder may not be charged more than 50
 1815  percent above, and may not be charged less than, the established
 1816  rate for the corporation which was in effect 1 year before the
 1817  date of the application.
 1818         9. As used in this paragraph, the term primary residence”
 1819  means the dwelling that is the policyholder’s primary home or is
 1820  a rental property that is the primary home of the tenant, and
 1821  which the policyholder or tenant occupies for more than 9 months
 1822  of each year.
 1823         (o) If coverage in an account, or the Citizens account if
 1824  established by the corporation, is deactivated pursuant to
 1825  paragraph (p), coverage through the corporation shall be
 1826  reactivated by order of the office only under one of the
 1827  following circumstances:
 1828         1. If the market assistance plan receives a minimum of 100
 1829  applications for coverage within a 3-month period, or 200
 1830  applications for coverage within a 1-year period or less for
 1831  residential coverage, unless the market assistance plan provides
 1832  a quotation from admitted carriers at their filed rates for at
 1833  least 90 percent of such applicants. Any market assistance plan
 1834  application that is rejected because an individual risk is so
 1835  hazardous as to be uninsurable using the criteria specified in
 1836  subparagraph (c)8. shall not be included in the minimum
 1837  percentage calculation provided herein. In the event that there
 1838  is a legal or administrative challenge to a determination by the
 1839  office that the conditions of this subparagraph have been met
 1840  for eligibility for coverage in the corporation, any eligible
 1841  risk may obtain coverage during the pendency of such challenge.
 1842         2. In response to a state of emergency declared by the
 1843  Governor under s. 252.36, the office may activate coverage by
 1844  order for the period of the emergency upon a finding by the
 1845  office that the emergency significantly affects the availability
 1846  of residential property insurance.
 1847         (p)1. The corporation shall file with the office quarterly
 1848  statements of financial condition, an annual statement of
 1849  financial condition, and audited financial statements in the
 1850  manner prescribed by law. In addition, the corporation shall
 1851  report to the office monthly on the types, premium, exposure,
 1852  and distribution by county of its policies in force, and shall
 1853  submit other reports as the office requires to carry out its
 1854  oversight of the corporation.
 1855         2. The activities of the corporation shall be reviewed at
 1856  least annually by the office to determine whether coverage shall
 1857  be deactivated in an account, or in the Citizens account if
 1858  established by the corporation, on the basis that the conditions
 1859  giving rise to its activation no longer exist.
 1860         (q)1. The corporation shall certify to the office its needs
 1861  for annual assessments as to a particular calendar year, and for
 1862  any interim assessments that it deems to be necessary to sustain
 1863  operations as to a particular year pending the receipt of annual
 1864  assessments. Upon verification, the office shall approve such
 1865  certification, and the corporation shall levy such annual or
 1866  interim assessments. Such assessments shall be prorated, if
 1867  authority to levy exists, as provided in paragraph (b). The
 1868  corporation shall take all reasonable and prudent steps
 1869  necessary to collect the amount of assessments due from each
 1870  assessable insurer, including, if prudent, filing suit to
 1871  collect the assessments, and the office may provide such
 1872  assistance to the corporation it deems appropriate. If the
 1873  corporation is unable to collect an assessment from any
 1874  assessable insurer, the uncollected assessments shall be levied
 1875  as an additional assessment against the assessable insurers and
 1876  any assessable insurer required to pay an additional assessment
 1877  as a result of such failure to pay shall have a cause of action
 1878  against such nonpaying assessable insurer. Assessments shall be
 1879  included as an appropriate factor in the making of rates. The
 1880  failure of a surplus lines agent to collect and remit any
 1881  regular or emergency assessment levied by the corporation is
 1882  considered to be a violation of s. 626.936 and subjects the
 1883  surplus lines agent to the penalties provided in that section.
 1884         2. The governing body of any unit of local government, any
 1885  residents of which are insured by the corporation, may issue
 1886  bonds as defined in s. 125.013 or s. 166.101 from time to time
 1887  to fund an assistance program, in conjunction with the
 1888  corporation, for the purpose of defraying deficits of the
 1889  corporation. In order to avoid needless and indiscriminate
 1890  proliferation, duplication, and fragmentation of such assistance
 1891  programs, any unit of local government, any residents of which
 1892  are insured by the corporation, may provide for the payment of
 1893  losses, regardless of whether or not the losses occurred within
 1894  or outside of the territorial jurisdiction of the local
 1895  government. Revenue bonds under this subparagraph may not be
 1896  issued until validated pursuant to chapter 75, unless a state of
 1897  emergency is declared by executive order or proclamation of the
 1898  Governor pursuant to s. 252.36 making such findings as are
 1899  necessary to determine that it is in the best interests of, and
 1900  necessary for, the protection of the public health, safety, and
 1901  general welfare of residents of this state and declaring it an
 1902  essential public purpose to permit certain municipalities or
 1903  counties to issue such bonds as will permit relief to claimants
 1904  and policyholders of the corporation. Any such unit of local
 1905  government may enter into such contracts with the corporation
 1906  and with any other entity created pursuant to this subsection as
 1907  are necessary to carry out this paragraph. Any bonds issued
 1908  under this subparagraph shall be payable from and secured by
 1909  moneys received by the corporation from emergency assessments
 1910  under sub-subparagraph (b)3.e. (b)3.d., and assigned and pledged
 1911  to or on behalf of the unit of local government for the benefit
 1912  of the holders of such bonds. The funds, credit, property, and
 1913  taxing power of the state or of the unit of local government
 1914  shall not be pledged for the payment of such bonds.
 1915         3.a. The corporation shall adopt one or more programs
 1916  subject to approval by the office for the reduction of both new
 1917  and renewal writings in the corporation. Beginning January 1,
 1918  2008, any program the corporation adopts for the payment of
 1919  bonuses to an insurer for each risk the insurer removes from the
 1920  corporation shall comply with s. 627.3511(2) and may not exceed
 1921  the amount referenced in s. 627.3511(2) for each risk removed.
 1922  The corporation may consider any prudent and not unfairly
 1923  discriminatory approach to reducing corporation writings, and
 1924  may adopt a credit against assessment liability or other
 1925  liability that provides an incentive for insurers to take risks
 1926  out of the corporation and to keep risks out of the corporation
 1927  by maintaining or increasing voluntary writings in counties or
 1928  areas in which corporation risks are highly concentrated and a
 1929  program to provide a formula under which an insurer voluntarily
 1930  taking risks out of the corporation by maintaining or increasing
 1931  voluntary writings will be relieved wholly or partially from
 1932  assessments under sub-subparagraph (b)3.a. However, any “take
 1933  out bonus” or payment to an insurer must be conditioned on the
 1934  property being insured for at least 5 years by the insurer,
 1935  unless canceled or nonrenewed by the policyholder. If the policy
 1936  is canceled or nonrenewed by the policyholder before the end of
 1937  the 5-year period, the amount of the take-out bonus must be
 1938  prorated for the time period the policy was insured. When the
 1939  corporation enters into a contractual agreement for a take-out
 1940  plan, the producing agent of record of the corporation policy is
 1941  entitled to retain any unearned commission on such policy, and
 1942  the insurer shall either:
 1943         (I) Pay to the producing agent of record of the policy, for
 1944  the first year, an amount which is the greater of the insurer’s
 1945  usual and customary commission for the type of policy written or
 1946  a policy fee equal to the usual and customary commission of the
 1947  corporation; or
 1948         (II) Offer to allow the producing agent of record of the
 1949  policy to continue servicing the policy for a period of not less
 1950  than 1 year and offer to pay the agent the insurer’s usual and
 1951  customary commission for the type of policy written. If the
 1952  producing agent is unwilling or unable to accept appointment by
 1953  the new insurer, the new insurer shall pay the agent in
 1954  accordance with sub-sub-subparagraph (I).
 1955         b. Any credit or exemption from regular assessments adopted
 1956  under this subparagraph shall last no longer than the 3 years
 1957  following the cancellation or expiration of the policy by the
 1958  corporation. With the approval of the office, the board may
 1959  extend such credits for an additional year if the insurer
 1960  guarantees an additional year of renewability for all policies
 1961  removed from the corporation, or for 2 additional years if the
 1962  insurer guarantees 2 additional years of renewability for all
 1963  policies so removed.
 1964         c. There shall be no credit, limitation, exemption, or
 1965  deferment from emergency assessments to be collected from
 1966  policyholders pursuant to sub-subparagraph (b)3.e. or sub
 1967  subparagraph (b)5.c. (b)3.d.
 1968         4. The plan shall provide for the deferment, in whole or in
 1969  part, of the assessment of an assessable insurer, other than an
 1970  emergency assessment collected from policyholders pursuant to
 1971  sub-subparagraph (b)3.e. or sub-subparagraph (b)5.c. (b)3.d., if
 1972  the office finds that payment of the assessment would endanger
 1973  or impair the solvency of the insurer. In the event an
 1974  assessment against an assessable insurer is deferred in whole or
 1975  in part, the amount by which such assessment is deferred may be
 1976  assessed against the other assessable insurers in a manner
 1977  consistent with the basis for assessments set forth in paragraph
 1978  (b).
 1979         5. Effective July 1, 2007, in order to evaluate the costs
 1980  and benefits of approved take-out plans, if the corporation pays
 1981  a bonus or other payment to an insurer for an approved take-out
 1982  plan, it shall maintain a record of the address or such other
 1983  identifying information on the property or risk removed in order
 1984  to track if and when the property or risk is later insured by
 1985  the corporation.
 1986         6. Any policy taken out, assumed, or removed from the
 1987  corporation is, as of the effective date of the take-out,
 1988  assumption, or removal, direct insurance issued by the insurer
 1989  and not by the corporation, even if the corporation continues to
 1990  service the policies. This subparagraph applies to policies of
 1991  the corporation and not policies taken out, assumed, or removed
 1992  from any other entity.
 1993         7. For a policy taken out, assumed, or removed from the
 1994  corporation, the insurer may, for a period of no more than 3
 1995  years, continue to use any of the corporation’s policy forms or
 1996  endorsements that apply to the policy taken out, removed, or
 1997  assumed without obtaining approval from the office for use of
 1998  such policy form or endorsement.
 1999         (v)1. Effective July 1, 2002, policies of the Residential
 2000  Property and Casualty Joint Underwriting Association become
 2001  policies of the corporation. All obligations, rights, assets and
 2002  liabilities of the association, including bonds, note and debt
 2003  obligations, and the financing documents pertaining to them
 2004  become those of the corporation as of July 1, 2002. The
 2005  corporation is not required to issue endorsements or
 2006  certificates of assumption to insureds during the remaining term
 2007  of in-force transferred policies.
 2008         2. Effective July 1, 2002, policies of the Florida
 2009  Windstorm Underwriting Association are transferred to the
 2010  corporation and become policies of the corporation. All
 2011  obligations, rights, assets, and liabilities of the association,
 2012  including bonds, note and debt obligations, and the financing
 2013  documents pertaining to them are transferred to and assumed by
 2014  the corporation on July 1, 2002. The corporation is not required
 2015  to issue endorsements or certificates of assumption to insureds
 2016  during the remaining term of in-force transferred policies.
 2017         3. The Florida Windstorm Underwriting Association and the
 2018  Residential Property and Casualty Joint Underwriting Association
 2019  shall take all actions necessary to further evidence the
 2020  transfers and provide the documents and instruments of further
 2021  assurance as may reasonably be requested by the corporation for
 2022  that purpose. The corporation shall execute assumptions and
 2023  instruments as the trustees or other parties to the financing
 2024  documents of the Florida Windstorm Underwriting Association or
 2025  the Residential Property and Casualty Joint Underwriting
 2026  Association may reasonably request to further evidence the
 2027  transfers and assumptions, which transfers and assumptions,
 2028  however, are effective on the date provided under this paragraph
 2029  whether or not, and regardless of the date on which, the
 2030  assumptions or instruments are executed by the corporation.
 2031  Subject to the relevant financing documents pertaining to their
 2032  outstanding bonds, notes, indebtedness, or other financing
 2033  obligations, the moneys, investments, receivables, choses in
 2034  action, and other intangibles of the Florida Windstorm
 2035  Underwriting Association shall be credited to the coastal
 2036  account of the corporation, and those of the personal lines
 2037  residential coverage account and the commercial lines
 2038  residential coverage account of the Residential Property and
 2039  Casualty Joint Underwriting Association shall be credited to the
 2040  personal lines account and the commercial lines account,
 2041  respectively, of the corporation.
 2042         4. Effective July 1, 2002, a new applicant for property
 2043  insurance coverage who would otherwise have been eligible for
 2044  coverage in the Florida Windstorm Underwriting Association is
 2045  eligible for coverage from the corporation as provided in this
 2046  subsection.
 2047         5. The transfer of all policies, obligations, rights,
 2048  assets, and liabilities from the Florida Windstorm Underwriting
 2049  Association to the corporation and the renaming of the
 2050  Residential Property and Casualty Joint Underwriting Association
 2051  as the corporation does not affect the coverage with respect to
 2052  covered policies as defined in s. 215.555(2)(c) provided to
 2053  these entities by the Florida Hurricane Catastrophe Fund. The
 2054  coverage provided by the fund to the Florida Windstorm
 2055  Underwriting Association based on its exposures as of June 30,
 2056  2002, and each June 30 thereafter, unless the corporation has
 2057  established the Citizens account, shall be redesignated as
 2058  coverage for the coastal account of the corporation.
 2059  Notwithstanding any other provision of law, the coverage
 2060  provided by the fund to the Residential Property and Casualty
 2061  Joint Underwriting Association based on its exposures as of June
 2062  30, 2002, and each June 30 thereafter, unless the corporation
 2063  has established the Citizens account, shall be transferred to
 2064  the personal lines account and the commercial lines account of
 2065  the corporation. Notwithstanding any other provision of law, the
 2066  coastal account, unless the corporation has established the
 2067  Citizens account, shall be treated, for all Florida Hurricane
 2068  Catastrophe Fund purposes, as if it were a separate
 2069  participating insurer with its own exposures, reimbursement
 2070  premium, and loss reimbursement. Likewise, the personal lines
 2071  and commercial lines accounts, unless the corporation has
 2072  established the Citizens account, shall be viewed together, for
 2073  all fund purposes, as if the two accounts were one and represent
 2074  a single, separate participating insurer with its own exposures,
 2075  reimbursement premium, and loss reimbursement. The coverage
 2076  provided by the fund to the corporation shall constitute and
 2077  operate as a full transfer of coverage from the Florida
 2078  Windstorm Underwriting Association and Residential Property and
 2079  Casualty Joint Underwriting Association to the corporation.
 2080         (w) Notwithstanding any other provision of law:
 2081         1. The pledge or sale of, the lien upon, and the security
 2082  interest in any rights, revenues, or other assets of the
 2083  corporation created or purported to be created pursuant to any
 2084  financing documents to secure any bonds or other indebtedness of
 2085  the corporation shall be and remain valid and enforceable,
 2086  notwithstanding the commencement of and during the continuation
 2087  of, and after, any rehabilitation, insolvency, liquidation,
 2088  bankruptcy, receivership, conservatorship, reorganization, or
 2089  similar proceeding against the corporation under the laws of
 2090  this state.
 2091         2. The proceeding does not relieve the corporation of its
 2092  obligation, or otherwise affect its ability to perform its
 2093  obligation, to continue to collect, or levy and collect,
 2094  assessments, policyholder surcharges or other surcharges under
 2095  sub-subparagraph (b)3.j. (b)3.i., or any other rights, revenues,
 2096  or other assets of the corporation pledged pursuant to any
 2097  financing documents.
 2098         3. Each such pledge or sale of, lien upon, and security
 2099  interest in, including the priority of such pledge, lien, or
 2100  security interest, any such assessments, policyholder surcharges
 2101  or other surcharges, or other rights, revenues, or other assets
 2102  which are collected, or levied and collected, after the
 2103  commencement of and during the pendency of, or after, any such
 2104  proceeding shall continue unaffected by such proceeding. As used
 2105  in this subsection, the term “financing documents” means any
 2106  agreement or agreements, instrument or instruments, or other
 2107  document or documents now existing or hereafter created
 2108  evidencing any bonds or other indebtedness of the corporation or
 2109  pursuant to which any such bonds or other indebtedness has been
 2110  or may be issued and pursuant to which any rights, revenues, or
 2111  other assets of the corporation are pledged or sold to secure
 2112  the repayment of such bonds or indebtedness, together with the
 2113  payment of interest on such bonds or such indebtedness, or the
 2114  payment of any other obligation or financial product, as defined
 2115  in the plan of operation of the corporation related to such
 2116  bonds or indebtedness.
 2117         4. Any such pledge or sale of assessments, revenues,
 2118  contract rights, or other rights or assets of the corporation
 2119  shall constitute a lien and security interest, or sale, as the
 2120  case may be, that is immediately effective and attaches to such
 2121  assessments, revenues, or contract rights or other rights or
 2122  assets, whether or not imposed or collected at the time the
 2123  pledge or sale is made. Any such pledge or sale is effective,
 2124  valid, binding, and enforceable against the corporation or other
 2125  entity making such pledge or sale, and valid and binding against
 2126  and superior to any competing claims or obligations owed to any
 2127  other person or entity, including policyholders in this state,
 2128  asserting rights in any such assessments, revenues, or contract
 2129  rights or other rights or assets to the extent set forth in and
 2130  in accordance with the terms of the pledge or sale contained in
 2131  the applicable financing documents, whether or not any such
 2132  person or entity has notice of such pledge or sale and without
 2133  the need for any physical delivery, recordation, filing, or
 2134  other action.
 2135         5. As long as the corporation has any bonds outstanding,
 2136  the corporation may not file a voluntary petition under chapter
 2137  9 of the federal Bankruptcy Code or such corresponding chapter
 2138  or sections as may be in effect, from time to time, and a public
 2139  officer or any organization, entity, or other person may not
 2140  authorize the corporation to be or become a debtor under chapter
 2141  9 of the federal Bankruptcy Code or such corresponding chapter
 2142  or sections as may be in effect, from time to time, during any
 2143  such period.
 2144         6. If ordered by a court of competent jurisdiction, the
 2145  corporation may assume policies or otherwise provide coverage
 2146  for policyholders of an insurer placed in liquidation under
 2147  chapter 631, under such forms, rates, terms, and conditions as
 2148  the corporation deems appropriate, subject to approval by the
 2149  office.
 2150         (aa) Except as otherwise provided in this paragraph, the
 2151  corporation shall not require the securing and maintaining of
 2152  flood insurance as a condition of coverage of a personal lines
 2153  residential risk. if The insured or applicant must execute
 2154  executes a form approved by the office affirming that flood
 2155  insurance is not provided by the corporation and that if flood
 2156  insurance is not secured by the applicant or insured from an
 2157  insurer other than the corporation and in addition to coverage
 2158  by the corporation, the risk will not be eligible for coverage
 2159  by the corporation covered for flood damage. A corporation
 2160  policyholder electing not to secure flood insurance and
 2161  executing a form as provided herein making a claim for water
 2162  damage against the corporation shall have the burden of proving
 2163  the damage was not caused by flooding. Notwithstanding other
 2164  provisions of this subsection, The corporation may deny coverage
 2165  of a personal lines residential risk to an applicant or insured
 2166  who refuses to secure and maintain flood insurance execute the
 2167  form described herein. The requirement to purchase flood
 2168  insurance shall be implemented as follows:
 2169         1.Except as provided in subparagraphs 2. and 3., all
 2170  personal lines residential policyholders must have flood
 2171  coverage in place for policies effective on or after:
 2172         a.January 1, 2024, for property valued at $600,000 or
 2173  more.
 2174         b.January 1, 2025, for property valued at $500,000 or
 2175  more.
 2176         c.January 1, 2026, for property valued at $400,000 or
 2177  more.
 2178         d.January 1, 2027, for all other personal lines
 2179  residential property insured by the corporation.
 2180         2.All personal lines residential policyholders whose
 2181  property insured by the corporation is located within the
 2182  special flood hazard area defined by the Federal Emergency
 2183  Management Agency must have flood coverage in place:
 2184         a.At the time of initial policy issuance for all new
 2185  personal lines residential policies issued by the corporation on
 2186  or after April 1, 2023.
 2187         b.By the time of the policy renewal for allpersonal lines
 2188  residential policies renewing on or after July 1, 2023.
 2189         3.Policyholders whose policies issued by the corporation
 2190  do not provide coverage for the peril of wind are not required
 2191  to purchase flood insurance as a condition for maintaining their
 2192  policies with the corporation.
 2193  
 2194  The flood insurance required under this paragraph must meet, at
 2195  a minimum, the coverage available from the National Flood
 2196  Insurance Program or the requirements of subparagraphs s.
 2197  627.715(1)(a)1., 2., and 3.
 2198         (ii) The corporation shall revise the programs adopted
 2199  pursuant to sub-subparagraph (q)3.a. for personal lines
 2200  residential policies to maximize policyholder options and
 2201  encourage increased participation by insurers and agents. After
 2202  January 1, 2017, a policy may not be taken out of the
 2203  corporation unless the provisions of this paragraph are met.
 2204         1. The corporation must publish a periodic schedule of
 2205  cycles during which an insurer may identify, and notify the
 2206  corporation of, policies that the insurer is requesting to take
 2207  out. A request must include a description of the coverage
 2208  offered and an estimated premium and must be submitted to the
 2209  corporation in a form and manner prescribed by the corporation.
 2210         2. The corporation must maintain and make available to the
 2211  agent of record a consolidated list of all insurers requesting
 2212  to take out a policy. The list must include a description of the
 2213  coverage offered and the estimated premium for each take-out
 2214  request.
 2215         3. If a policyholder receives a take-out offer from an
 2216  authorized insurer, the risk is no longer eligible for coverage
 2217  with the corporation unless the premium for coverage from the
 2218  authorized insurer is more 20 percent greater than the renewal
 2219  premium for comparable coverage from the corporation pursuant to
 2220  sub-subparagraph (c)5.c. This subparagraph applies to take-out
 2221  offers that are part of an application to participate in
 2222  depopulation submitted to the office on or after January 1,
 2223  2023.
 2224         4. The corporation must provide written notice to the
 2225  policyholder and the agent of record regarding all insurers
 2226  requesting to take out the policy and regarding the
 2227  policyholder’s option to accept a take-out offer or to reject
 2228  all take-out offers and to remain with the corporation. The
 2229  notice must be in a format prescribed by the corporation and
 2230  include, for each take-out offer:
 2231         a. The amount of the estimated premium;
 2232         b. A description of the coverage; and
 2233         c. A comparison of the estimated premium and coverage
 2234  offered by the insurer to the estimated premium and coverage
 2235  provided by the corporation.
 2236         (kk)A corporation policyholder making a claim for water
 2237  damage against the corporation has the burden of proving that
 2238  the damage was not caused by flooding.
 2239         Section 9. Paragraph (s) of subsection (6) of section
 2240  627.351, Florida Statutes, is amended to read:
 2241         627.351 Insurance risk apportionment plans.—
 2242         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
 2243         (s)1. There shall be no liability on the part of, and no
 2244  cause of action of any nature shall arise against, any
 2245  assessable insurer or its agents or employees, the corporation
 2246  or its agents or employees, members of the board of governors or
 2247  their respective designees at a board meeting, corporation
 2248  committee members, or the office or its representatives, for any
 2249  action taken by them in the performance of their duties or
 2250  responsibilities under this subsection. Such immunity does not
 2251  apply to:
 2252         a. Any of the foregoing persons or entities for any willful
 2253  tort;
 2254         b. The corporation or its producing agents for breach of
 2255  any contract or agreement pertaining to insurance coverage;
 2256         c. The corporation with respect to issuance or payment of
 2257  debt;
 2258         d. Any assessable insurer with respect to any action to
 2259  enforce an assessable insurer’s obligations to the corporation
 2260  under this subsection; or
 2261         e. The corporation in any pending or future action for
 2262  breach of contract or for benefits under a policy issued by the
 2263  corporation; in any such action, the corporation shall be liable
 2264  to the policyholders and beneficiaries for attorney’s fees under
 2265  s. 627.428.
 2266         2. The corporation shall manage its claim employees,
 2267  independent adjusters, and others who handle claims to ensure
 2268  they carry out the corporation’s duty to its policyholders to
 2269  handle claims carefully, timely, diligently, and in good faith,
 2270  balanced against the corporation’s duty to the state to manage
 2271  its assets responsibly to minimize its assessment potential.
 2272         Section 10. Paragraphs (b) and (c) of subsection (3) and
 2273  paragraphs (d), (e), and (f) of subsection (6) of section
 2274  627.3511, Florida Statutes, are amended to read:
 2275         627.3511 Depopulation of Citizens Property Insurance
 2276  Corporation.—
 2277         (3) EXEMPTION FROM DEFICIT ASSESSMENTS.—
 2278         (b) An insurer that first wrote personal lines residential
 2279  property coverage in this state on or after July 1, 1994, is
 2280  exempt from regular deficit assessments imposed pursuant to s.
 2281  627.351(6)(b)3.a., but not emergency assessments collected from
 2282  policyholders pursuant to s. 627.351(6)(b)3.e. s.
 2283  627.351(6)(b)3.d., of the Citizens Property Insurance
 2284  Corporation until the earlier of the following:
 2285         1. The end of the calendar year in which it first wrote 0.5
 2286  percent or more of the statewide aggregate direct written
 2287  premium for any line of residential property coverage; or
 2288         2. December 31, 1997, or December 31 of the third year in
 2289  which it wrote such coverage in this state, whichever is later.
 2290         (c) Other than an insurer that is exempt under paragraph
 2291  (b), an insurer that in any calendar year increases its total
 2292  structure exposure subject to wind coverage by 25 percent or
 2293  more over its exposure for the preceding calendar year is, with
 2294  respect to that year, exempt from deficit assessments imposed
 2295  pursuant to s. 627.351(6)(b)3.a., but not emergency assessments
 2296  collected from policyholders pursuant to s. 627.351(6)(b)3.e. s.
 2297  627.351(6)(b)3.d., of the Citizens Property Insurance
 2298  Corporation attributable to such increase in exposure.
 2299         (6) COMMERCIAL RESIDENTIAL TAKE-OUT PLANS.—
 2300         (d) The calculation of an insurer’s regular assessment
 2301  liability under s. 627.351(6)(b)3.a., but not emergency
 2302  assessments collected from policyholders pursuant to s.
 2303  627.351(6)(b)3.e. s. 627.351(6)(b)3.d., shall, with respect to
 2304  commercial residential policies removed from the corporation
 2305  under an approved take-out plan, exclude such removed policies
 2306  for the succeeding 3 years, as follows:
 2307         1. In the first year following removal of the policies, the
 2308  policies are excluded from the calculation to the extent of 100
 2309  percent.
 2310         2. In the second year following removal of the policies,
 2311  the policies are excluded from the calculation to the extent of
 2312  75 percent.
 2313         3. In the third year following removal of the policies, the
 2314  policies are excluded from the calculation to the extent of 50
 2315  percent.
 2316         (e) An insurer that first wrote commercial residential
 2317  property coverage in this state on or after June 1, 1996, is
 2318  exempt from regular assessments under s. 627.351(6)(b)3.a., but
 2319  not emergency assessments collected from policyholders pursuant
 2320  to s. 627.351(6)(b)3.e. s. 627.351(6)(b)3.d., with respect to
 2321  commercial residential policies until the earlier of:
 2322         1. The end of the calendar year in which such insurer first
 2323  wrote 0.5 percent or more of the statewide aggregate direct
 2324  written premium for commercial residential property coverage; or
 2325         2. December 31 of the third year in which such insurer
 2326  wrote commercial residential property coverage in this state.
 2327         (f) An insurer that is not otherwise exempt from regular
 2328  assessments under s. 627.351(6)(b)3.a. with respect to
 2329  commercial residential policies is, for any calendar year in
 2330  which such insurer increased its total commercial residential
 2331  hurricane exposure by 25 percent or more over its exposure for
 2332  the preceding calendar year, exempt from regular assessments
 2333  under s. 627.351(6)(b)3.a., but not emergency assessments
 2334  collected from policyholders pursuant to s. 627.351(6)(b)3.e. s.
 2335  627.351(6)(b)3.d., attributable to such increased exposure.
 2336         Section 11. Effective January 1, 2023, subsection (5) of
 2337  section 627.3518, Florida Statutes, is amended to read:
 2338         627.3518 Citizens Property Insurance Corporation
 2339  policyholder eligibility clearinghouse program.—The purpose of
 2340  this section is to provide a framework for the corporation to
 2341  implement a clearinghouse program by January 1, 2014.
 2342         (5) Notwithstanding s. 627.3517, any applicant for new
 2343  coverage from the corporation is not eligible for coverage from
 2344  the corporation if provided an offer of coverage from an
 2345  authorized insurer through the program at a premium that is at
 2346  or below the eligibility threshold for applicants for new
 2347  coverage established in s. 627.351(6)(c)5.a. Whenever an offer
 2348  of coverage for a personal lines risk is received for a
 2349  policyholder of the corporation at renewal from an authorized
 2350  insurer through the program which is at or below the eligibility
 2351  threshold for policyholders of the corporation established in s.
 2352  627.351(6)(c)5.a., if the offer is equal to or less than the
 2353  corporation’s renewal premium for comparable coverage, the risk
 2354  is not eligible for coverage with the corporation. In the event
 2355  an offer of coverage for a new applicant is received from an
 2356  authorized insurer through the program, and the premium offered
 2357  exceeds the eligibility threshold for applicants for new
 2358  coverage established contained in s. 627.351(6)(c)5.a., the
 2359  applicant or insured may elect to accept such coverage, or may
 2360  elect to accept or continue coverage with the corporation. In
 2361  the event an offer of coverage for a personal lines risk is
 2362  received from an authorized insurer at renewal through the
 2363  program, and the premium offered exceeds the eligibility
 2364  threshold for policyholders of the corporation established in s.
 2365  627.351(6)(c)5.a. is more than the corporation’s renewal premium
 2366  for comparable coverage, the insured may elect to accept such
 2367  coverage, or may elect to accept or continue coverage with the
 2368  corporation. Section 627.351(6)(c)5.a.(I) does not apply to an
 2369  offer of coverage from an authorized insurer obtained through
 2370  the program. An applicant for coverage from the corporation who
 2371  was declared ineligible for coverage at renewal by the
 2372  corporation in the previous 36 months due to an offer of
 2373  coverage pursuant to this subsection shall be considered a
 2374  renewal under this section if the corporation determines that
 2375  the authorized insurer making the offer of coverage pursuant to
 2376  this subsection continues to insure the applicant and increased
 2377  the rate on the policy in excess of the increase allowed for the
 2378  corporation under s. 627.351(6)(n)5.
 2379         Section 12. Subsection (3) of section 627.410, Florida
 2380  Statutes, is amended to read:
 2381         627.410 Filing, approval of forms.—
 2382         (3) The office may, for cause, withdraw a previous
 2383  approval. No insurer shall issue or use any form disapproved by
 2384  the office, or as to which the office has withdrawn approval,
 2385  after the effective date of the order of the office. Based on a
 2386  finding from a market conduct examination of a property insurer
 2387  that the insurer has exhibited a pattern or practice of one or
 2388  more willful unfair insurance trade practice violations with
 2389  regard to its use of appraisal, the office shall reexamine the
 2390  insurer’s property insurance policy forms that contain an
 2391  appraisal clause, and the office may:
 2392         (a)Withdraw approval of the forms, if warranted by the
 2393  Florida Insurance Code.
 2394         (b)In addition to any regulatory action under ss. 624.418
 2395  and 624.4211, issue an order prohibiting the insurer from
 2396  invoking appraisal for up to 2 years.
 2397         Section 13. Subsections (1) and (4) of section 627.428,
 2398  Florida Statutes, are amended to read:
 2399         627.428 Attorney fees.—
 2400         (1) Except as provided in subsection (4), upon the
 2401  rendition of a judgment or decree by any of the courts of this
 2402  state against an insurer and in favor of any named or omnibus
 2403  insured or the named beneficiary under a policy or contract
 2404  executed by the insurer, the trial court or, in the event of an
 2405  appeal in which the insured or beneficiary prevails, the
 2406  appellate court shall adjudge or decree against the insurer and
 2407  in favor of the insured or beneficiary a reasonable sum as fees
 2408  or compensation for the insured’s or beneficiary’s attorney
 2409  prosecuting the suit in which the recovery is had. In a suit
 2410  arising under a residential or commercial property insurance
 2411  policy, the amount of reasonable attorney fees shall be awarded
 2412  only as provided in s. 57.105 or s. 627.70152, as applicable.
 2413         (4) In a suit arising under a residential or commercial
 2414  property insurance policy, there is no the right to attorney
 2415  fees under this section may not be transferred to, assigned to,
 2416  or acquired in any other manner by anyone other than a named or
 2417  omnibus insured or a named beneficiary.
 2418         Section 14. Paragraph (b) of subsection (4) of section
 2419  627.7011, Florida Statutes, is amended to read:
 2420         627.7011 Homeowners’ policies; offer of replacement cost
 2421  coverage and law and ordinance coverage.—
 2422         (4)
 2423         (b) An insurer that issues a homeowner’s insurance policy
 2424  that does not provide flood insurance coverage must include on
 2425  the policy declarations page with the policy documents at
 2426  initial issuance and every renewal, in bold type no smaller than
 2427  18 points, the following statement:
 2428  
 2429         “FLOOD INSURANCE: YOU SHOULD MAY ALSO NEED TO CONSIDER
 2430         THE PURCHASE OF FLOOD INSURANCE. YOUR HOMEOWNER’S
 2431         INSURANCE POLICY DOES NOT INCLUDE COVERAGE FOR DAMAGE
 2432         RESULTING FROM FLOOD EVEN IF HURRICANE WINDS AND RAIN
 2433         CAUSED THE FLOOD TO OCCUR. WITHOUT SEPARATE FLOOD
 2434         INSURANCE COVERAGE, YOUR YOU MAY HAVE UNCOVERED LOSSES
 2435         CAUSED BY FLOOD ARE NOT COVERED. PLEASE DISCUSS THE
 2436         NEED TO PURCHASE SEPARATE FLOOD INSURANCE COVERAGE
 2437         WITH YOUR INSURANCE AGENT.”
 2438  
 2439         Section 15. Effective March 1, 2023, present subsection (8)
 2440  of section 627.70131, Florida Statutes, is redesignated as
 2441  subsection (9), a new subsection (8) is added to that section,
 2442  and paragraph (a) of subsection (1), subsections (3), (4), and
 2443  (5), and paragraph (a) of subsection (7) of that section are
 2444  amended, to read:
 2445         627.70131 Insurer’s duty to acknowledge communications
 2446  regarding claims; investigation.—
 2447         (1)(a) Upon an insurer’s receiving a communication with
 2448  respect to a claim, the insurer shall, within 7 14 calendar
 2449  days, review and acknowledge receipt of such communication
 2450  unless payment is made within that period of time or unless the
 2451  failure to acknowledge is caused by factors beyond the control
 2452  of the insurer which reasonably prevent such acknowledgment. If
 2453  the acknowledgment is not in writing, a notification indicating
 2454  acknowledgment shall be made in the insurer’s claim file and
 2455  dated. A communication made to or by a representative of an
 2456  insurer with respect to a claim shall constitute communication
 2457  to or by the insurer.
 2458         (3)(a) Unless otherwise provided by the policy of insurance
 2459  or by law, within 7 14 days after an insurer receives proof-of
 2460  loss statements, the insurer shall begin such investigation as
 2461  is reasonably necessary unless the failure to begin such
 2462  investigation is caused by factors beyond the control of the
 2463  insurer which reasonably prevent the commencement of such
 2464  investigation.
 2465         (b) If such investigation involves a physical inspection of
 2466  the property, the licensed adjuster assigned by the insurer must
 2467  provide the policyholder with a printed or electronic document
 2468  containing his or her name and state adjuster license number.
 2469  For claims other than those subject to a hurricane deductible,
 2470  An insurer must conduct any such physical inspection within 30
 2471  45 days after its receipt of the proof-of-loss statements.
 2472         (c) Any subsequent communication with the policyholder
 2473  regarding the claim must also include the name and license
 2474  number of the adjuster communicating about the claim.
 2475  Communication of the adjuster’s name and license number may be
 2476  included with other information provided to the policyholder.
 2477         (d) An insurer may use electronic methods to investigate
 2478  the loss. Such electronic methods may include any method that
 2479  provides the insurer with clear, color pictures or video
 2480  documenting the loss, including, but not limited to, electronic
 2481  photographs or video recordings of the loss, video conferencing
 2482  between the adjuster and the policyholder which includes video
 2483  recording of the loss, and video recordings or photographs of
 2484  the loss using a drone, driverless vehicle, or other machine
 2485  that can move independently or through remote control. The
 2486  insurer also may allow the policyholder to use such methods to
 2487  assist in the investigation of the loss. An insurer may void the
 2488  insurance policy if the policyholder or any other person at the
 2489  direction of the policyholder, with intent to injure, defraud,
 2490  or deceive any insurer, commits insurance fraud by providing
 2491  false, incomplete, or misleading information concerning any fact
 2492  or thing material to a claim using electronic methods. The use
 2493  of electronic methods to investigate the loss does not prohibit
 2494  an insurer from assigning a licensed adjuster to physically
 2495  inspect the property.
 2496         (e)Within 7 days after the insurer’s assignment of an
 2497  adjuster to the claim, The insurer must send notify the
 2498  policyholder that he or she may request a copy of any detailed
 2499  estimate of the amount of the loss within 7 days after the
 2500  estimate is generated by an insurer’s adjuster. After receiving
 2501  such a request from the policyholder, the insurer must send any
 2502  such detailed estimate to the policyholder within the later of 7
 2503  days after the insurer received the request or 7 days after the
 2504  detailed estimate of the amount of the loss is completed. This
 2505  paragraph does not require that an insurer create a detailed
 2506  estimate of the amount of the loss if such estimate is not
 2507  reasonably necessary as part of the claim investigation.
 2508         (4) An insurer shall maintain:
 2509         (a) A record or log of each adjuster who communicates with
 2510  the policyholder as provided in paragraphs (3)(b) and (c) and
 2511  provide a list of such adjusters to the insured, office, or
 2512  department upon request.
 2513         (b)Claim records, including dates, of:
 2514         1.Any claim-related communication made between the insurer
 2515  and the policyholder or the policyholder’s representative;
 2516         2.The insurer’s receipt of the policyholder’s proof of
 2517  loss statement;
 2518         3.Any claim-related request for information made by the
 2519  insurer to the policyholder or the policyholder’s
 2520  representative;
 2521         4.Any claim-related inspections of the property made by
 2522  the insurer, including physical inspections and inspections made
 2523  by electronic means;
 2524         5.Any detailed estimate of the amount of the loss
 2525  generated by the insurer’s adjuster;
 2526         6.The beginning and end of any tolling period provided for
 2527  in subsection (8); and
 2528         7.The insurer’s payment or denial of the claim.
 2529         (5) For purposes of this section, the term:
 2530         (a)“Factors beyond the control of the insurer” means:
 2531         1.Any of the following events that is the basis for the
 2532  office issuing an order finding that such event renders all or
 2533  specified residential property insurers reasonably unable to
 2534  meet the requirements of this section in specified locations and
 2535  ordering that such insurer or insurers may have additional time
 2536  as specified by the office to comply with the requirements of
 2537  this section: a state of emergency declared by the Governor
 2538  under s. 252.36, a breach of security that must be reported
 2539  under s. 501.171(3), or an information technology issue. The
 2540  office may not extend the period for payment or denial of a
 2541  claim for more than 30 additional days.
 2542         2.Actions by the policyholder or the policyholder’s
 2543  representative which constitute fraud, lack of cooperation, or
 2544  intentional misrepresentation regarding the claim for which
 2545  benefits are owed when such actions reasonably prevent the
 2546  insurer from complying with any requirement of this section.
 2547         (b) “Insurer” means any residential property insurer.
 2548         (7)(a) Within 60 90 days after an insurer receives notice
 2549  of an initial, reopened, or supplemental property insurance
 2550  claim from a policyholder, the insurer shall pay or deny such
 2551  claim or a portion of the claim unless the failure to pay is
 2552  caused by factors beyond the control of the insurer which
 2553  reasonably prevent such payment. The insurer shall provide a
 2554  reasonable explanation in writing to the policyholder of the
 2555  basis in the insurance policy, in relation to the facts or
 2556  applicable law, for the payment, denial, or partial denial of a
 2557  claim. If the insurer’s claim payment is less than specified in
 2558  any insurer’s detailed estimate of the amount of the loss, the
 2559  insurer must provide a reasonable explanation in writing of the
 2560  difference to the policyholder. Any payment of an initial or
 2561  supplemental claim or portion of such claim made 60 90 days
 2562  after the insurer receives notice of the claim, or made more
 2563  than 15 days after the expiration of any additional timeframe
 2564  provided to pay or deny a claim or a portion of a claim made
 2565  pursuant to an order of the office finding there are no longer
 2566  factors beyond the control of the insurer which reasonably
 2567  prevented such payment, whichever is later, bears interest at
 2568  the rate set forth in s. 55.03. Interest begins to accrue from
 2569  the date the insurer receives notice of the claim. The
 2570  provisions of this subsection may not be waived, voided, or
 2571  nullified by the terms of the insurance policy. If there is a
 2572  right to prejudgment interest, the insured must select whether
 2573  to receive prejudgment interest or interest under this
 2574  subsection. Interest is payable when the claim or portion of the
 2575  claim is paid. Failure to comply with this subsection
 2576  constitutes a violation of this code. However, failure to comply
 2577  with this subsection does not form the sole basis for a private
 2578  cause of action.
 2579         (8)The requirements of this section are tolled:
 2580         (a)During the pendency of any mediation proceeding under
 2581  s. 627.7015 or any alternative dispute resolution proceeding
 2582  provided for in the insurance contract. The tolling period ends
 2583  upon the end of the mediation or alternative dispute resolution
 2584  proceeding.
 2585         (b)Upon the failure of a policyholder or a representative
 2586  of the policyholder to provide material claims information
 2587  requested by the insurer within 10 days after the request was
 2588  received. The tolling period ends upon the insurer’s receipt of
 2589  the requested information. Tolling under this paragraph applies
 2590  only to requests sent by the insurer to the policyholder or a
 2591  representative of the policyholder at least 15 days before the
 2592  insurer is required to pay or deny the claim or a portion of the
 2593  claim under subsection (7).
 2594         Section 16. Subsection (2) of section 627.70132, Florida
 2595  Statutes, is amended to read:
 2596         627.70132 Notice of property insurance claim.—
 2597         (2) A claim or reopened claim, but not a supplemental
 2598  claim, under an insurance policy that provides property
 2599  insurance, as defined in s. 624.604, including a property
 2600  insurance policy issued by an eligible surplus lines insurer,
 2601  for loss or damage caused by any peril is barred unless notice
 2602  of the claim was given to the insurer in accordance with the
 2603  terms of the policy within 1 year 2 years after the date of
 2604  loss. A supplemental claim is barred unless notice of the
 2605  supplemental claim was given to the insurer in accordance with
 2606  the terms of the policy within 18 months 3 years after the date
 2607  of loss.
 2608         Section 17. Subsections (1), (2), (6), and (8) of section
 2609  627.70152, Florida Statutes, are amended to read:
 2610         627.70152 Suits arising under a property insurance policy.—
 2611         (1) APPLICATION.—This section applies exclusively to all
 2612  suits not brought by an assignee arising under a residential or
 2613  commercial property insurance policy, including a residential or
 2614  commercial property insurance policy issued by an eligible
 2615  surplus lines insurer.
 2616         (2) DEFINITIONS.—As used in this section, the term:
 2617         (a) “Amount obtained” means damages recovered, if any, but
 2618  the term does not include any amount awarded for attorney fees,
 2619  costs, or interest.
 2620         (b) “Claimant” means an insured who is filing suit under a
 2621  residential or commercial property insurance policy.
 2622         (b)(c) “Disputed amount” means the difference between the
 2623  claimant’s presuit settlement demand, not including attorney
 2624  fees and costs listed in the demand, and the insurer’s presuit
 2625  settlement offer, not including attorney fees and costs, if part
 2626  of the offer.
 2627         (c)(d) “Presuit settlement demand” means the demand made by
 2628  the claimant in the written notice of intent to initiate
 2629  litigation as required by paragraph (3)(a). The demand must
 2630  include the amount of reasonable and necessary attorney fees and
 2631  costs incurred by the claimant, to be calculated by multiplying
 2632  the number of hours actually worked on the claim by the
 2633  claimant’s attorney as of the date of the notice by a reasonable
 2634  hourly rate.
 2635         (d)(e) “Presuit settlement offer” means the offer made by
 2636  the insurer in its written response to the notice as required by
 2637  subsection (3).
 2638         (6) ADMISSIBILITY OF NOTICE AND RESPONSE.—The notice
 2639  provided pursuant to subsection (3) and, if applicable, the
 2640  documentation to support the information provided in the notice:
 2641         (a) Are not admissible as evidence only in any a proceeding
 2642  regarding attorney fees.
 2643         (b) Do not limit the evidence of attorney fees or costs,
 2644  damages, or loss which may be offered at trial.
 2645         (c) Do not relieve any obligation that an insured or
 2646  assignee has to give notice under any other provision of law.
 2647         (8) ATTORNEY FEES.—
 2648         (a) In a suit arising under a residential or commercial
 2649  property insurance policy not brought by an assignee, the amount
 2650  of reasonable attorney fees and costs under s. 626.9373(1) or s.
 2651  627.428(1) shall be calculated and awarded as follows:
 2652         1. If the difference between the amount obtained by the
 2653  claimant and the presuit settlement offer, excluding reasonable
 2654  attorney fees and costs, is less than 20 percent of the disputed
 2655  amount, each party pays its own attorney fees and costs and a
 2656  claimant may not be awarded attorney fees under s. 626.9373(1)
 2657  or s. 627.428(1).
 2658         2. If the difference between the amount obtained by the
 2659  claimant and the presuit settlement offer, excluding reasonable
 2660  attorney fees and costs, is at least 20 percent but less than 50
 2661  percent of the disputed amount, the insurer pays the claimant’s
 2662  attorney fees and costs under s. 626.9373(1) or s. 627.428(1)
 2663  equal to the percentage of the disputed amount obtained times
 2664  the total attorney fees and costs.
 2665         3. If the difference between the amount obtained by the
 2666  claimant and the presuit settlement offer, excluding reasonable
 2667  attorney fees and costs, is at least 50 percent of the disputed
 2668  amount, the insurer pays the claimant’s full attorney fees and
 2669  costs under s. 626.9373(1) or s. 627.428(1).
 2670         (b) In a suit arising under a residential or commercial
 2671  property insurance policy not brought by an assignee, if a court
 2672  dismisses a claimant’s suit pursuant to subsection (5), the
 2673  court may not award to the claimant any incurred attorney fees
 2674  for services rendered before the dismissal of the suit. When a
 2675  claimant’s suit is dismissed pursuant to subsection (5), the
 2676  court may award to the insurer reasonable attorney fees and
 2677  costs associated with securing the dismissal.
 2678         (c) In awarding attorney fees under this subsection, a
 2679  strong presumption is created that a lodestar fee is sufficient
 2680  and reasonable. Such presumption may be rebutted only in a rare
 2681  and exceptional circumstance with evidence that competent
 2682  counsel could not be retained in a reasonable manner.
 2683         Section 18. Section 627.70154, Florida Statutes, is created
 2684  to read:
 2685         627.70154 Mandatory binding arbitration.—A property
 2686  insurance policy issued in this state may not require that a
 2687  policyholder participate in mandatory binding arbitration unless
 2688  all of the following apply:
 2689         (1)The mandatory binding arbitration requirements are
 2690  contained in a separate endorsement attached to the property
 2691  insurance policy.
 2692         (2)The premium that a policyholder is charged for the
 2693  policy includes an actuarially sound credit or premium discount
 2694  for the mandatory binding arbitration endorsement.
 2695         (3)The policyholder signs a form electing to accept
 2696  mandatory binding arbitration. The form must notify the
 2697  policyholder of the rights given up in exchange for the credit
 2698  or premium discount, including, but not limited to, the right to
 2699  a trial by jury.
 2700         (4)The endorsement establishes that an insurer will comply
 2701  with the mediation provisions set forth in s. 627.7015 before
 2702  the initiation of arbitration.
 2703         (5)The insurer also offers the policyholder a policy that
 2704  does not require that the policyholder participate in mandatory
 2705  binding arbitration.
 2706         Section 19. Subsections (9), (14), and (15) of section
 2707  627.7074, Florida Statutes, are amended to read:
 2708         627.7074 Alternative procedure for resolution of disputed
 2709  sinkhole insurance claims.—
 2710         (9) Evidence of an offer to settle a claim during the
 2711  neutral evaluation process, as well as any relevant conduct or
 2712  statements made in negotiations concerning the offer to settle a
 2713  claim, is inadmissible to prove liability or absence of
 2714  liability for the claim or its value, except as provided in
 2715  subsection (14).
 2716         (14) If the neutral evaluator verifies the existence of a
 2717  sinkhole that caused structural damage and recommends the need
 2718  for and estimates costs of stabilizing the land and any covered
 2719  buildings and other appropriate remediation or building repairs
 2720  which exceed the amount that the insurer has offered to pay the
 2721  policyholder, the insurer is liable to the policyholder for up
 2722  to $2,500 in attorney’s fees for the attorney’s participation in
 2723  the neutral evaluation process. For purposes of this subsection,
 2724  the term “offer to pay” means a written offer signed by the
 2725  insurer or its legal representative and delivered to the
 2726  policyholder within 10 days after the insurer receives notice
 2727  that a request for neutral evaluation has been made under this
 2728  section.
 2729         (15) If the insurer timely agrees in writing to comply and
 2730  timely complies with the recommendation of the neutral
 2731  evaluator, but the policyholder declines to resolve the matter
 2732  in accordance with the recommendation of the neutral evaluator
 2733  pursuant to this section:
 2734         (a) The insurer is not liable for extracontractual damages
 2735  related to a claim for a sinkhole loss but only as related to
 2736  the issues determined by the neutral evaluation process. This
 2737  section does not affect or impair claims for extracontractual
 2738  damages unrelated to the issues determined by the neutral
 2739  evaluation process contained in this section; and
 2740         (b) The actions of the insurer are not a confession of
 2741  judgment or admission of liability, and the insurer is not
 2742  liable for attorney’s fees under s. 627.428 or other provisions
 2743  of the insurance code unless the policyholder obtains a judgment
 2744  that is more favorable than the recommendation of the neutral
 2745  evaluator.
 2746         Section 20. Effective March 1, 2023, section 627.7142,
 2747  Florida Statutes, is amended to read:
 2748         627.7142 Homeowner Claims Bill of Rights.—An insurer
 2749  issuing a personal lines residential property insurance policy
 2750  in this state must provide a Homeowner Claims Bill of Rights to
 2751  a policyholder within 14 days after receiving an initial
 2752  communication with respect to a claim. The purpose of the bill
 2753  of rights is to summarize, in simple, nontechnical terms,
 2754  existing Florida law regarding the rights of a personal lines
 2755  residential property insurance policyholder who files a claim of
 2756  loss. The Homeowner Claims Bill of Rights is specific to the
 2757  claims process and does not represent all of a policyholder’s
 2758  rights under Florida law regarding the insurance policy. The
 2759  Homeowner Claims Bill of Rights does not create a civil cause of
 2760  action by any individual policyholder or class of policyholders
 2761  against an insurer or insurers. The failure of an insurer to
 2762  properly deliver the Homeowner Claims Bill of Rights is subject
 2763  to administrative enforcement by the office but is not
 2764  admissible as evidence in a civil action against an insurer. The
 2765  Homeowner Claims Bill of Rights does not enlarge, modify, or
 2766  contravene statutory requirements, including, but not limited
 2767  to, ss. 626.854, 626.9541, 627.70131, 627.7015, and 627.7074,
 2768  and does not prohibit an insurer from exercising its right to
 2769  repair damaged property in compliance with the terms of an
 2770  applicable policy or ss. 627.7011(6)(e) and 627.702(7). The
 2771  Homeowner Claims Bill of Rights must state:
 2772  
 2773                          HOMEOWNER CLAIMS                         
 2774                           BILL OF RIGHTS                          
 2775         This Bill of Rights is specific to the claims process
 2776         and does not represent all of your rights under
 2777         Florida law regarding your policy. There are also
 2778         exceptions to the stated timelines when conditions are
 2779         beyond your insurance company’s control. This document
 2780         does not create a civil cause of action by an
 2781         individual policyholder, or a class of policyholders,
 2782         against an insurer or insurers and does not prohibit
 2783         an insurer from exercising its right to repair damaged
 2784         property in compliance with the terms of an applicable
 2785         policy.
 2786  
 2787         YOU HAVE THE RIGHT TO:
 2788         1. Receive from your insurance company an
 2789         acknowledgment of your reported claim within 7 14 days
 2790         after the time you communicated the claim.
 2791         2. Upon written request, receive from your
 2792         insurance company within 30 days after you have
 2793         submitted a complete proof-of-loss statement to your
 2794         insurance company, confirmation that your claim is
 2795         covered in full, partially covered, or denied, or
 2796         receive a written statement that your claim is being
 2797         investigated.
 2798         3. Receive from your insurance company a copy of
 2799         any detailed estimate of the amount of the loss within
 2800         7 days after the estimate is generated by the
 2801         insurance company’s adjuster.
 2802         4. Within 60 90 days, subject to any dual
 2803         interest noted in the policy, receive full settlement
 2804         payment for your claim or payment of the undisputed
 2805         portion of your claim, or your insurance company’s
 2806         denial of your claim.
 2807         5.4. Receive payment of interest, as provided in
 2808         s. 627.70131, Florida Statutes, from your insurance
 2809         company, which begins accruing from the date your
 2810         claim is filed if your insurance company does not pay
 2811         full settlement of your initial, reopened, or
 2812         supplemental claim or the undisputed portion of your
 2813         claim or does not deny your claim within 60 90 days
 2814         after your claim is filed. The interest, if
 2815         applicable, must be paid when your claim or the
 2816         undisputed portion of your claim is paid.
 2817         6.5. Free mediation of your disputed claim by the
 2818         Florida Department of Financial Services, Division of
 2819         Consumer Services, under most circumstances and
 2820         subject to certain restrictions.
 2821         7.6. Neutral evaluation of your disputed claim,
 2822         if your claim is for damage caused by a sinkhole and
 2823         is covered by your policy.
 2824         8.7. Contact the Florida Department of Financial
 2825         Services, Division of Consumer Services’ toll-free
 2826         helpline for assistance with any insurance claim or
 2827         questions pertaining to the handling of your claim.
 2828         You can reach the Helpline by phone at ...(toll-free
 2829         phone number)..., or you can seek assistance online at
 2830         the Florida Department of Financial Services, Division
 2831         of Consumer Services’ website at ...(website
 2832         address)....
 2833  
 2834         YOU ARE ADVISED TO:
 2835         1. File all claims directly with your insurance
 2836         company.
 2837         2. Contact your insurance company before entering
 2838         into any contract for repairs to confirm any managed
 2839         repair policy provisions or optional preferred
 2840         vendors.
 2841         3. Make and document emergency repairs that are
 2842         necessary to prevent further damage. Keep the damaged
 2843         property, if feasible, keep all receipts, and take
 2844         photographs or video of damage before and after any
 2845         repairs to provide to your insurer.
 2846         4. Carefully read any contract that requires you
 2847         to pay out-of-pocket expenses or a fee that is based
 2848         on a percentage of the insurance proceeds that you
 2849         will receive for repairing or replacing your property.
 2850         5. Confirm that the contractor you choose is
 2851         licensed to do business in Florida. You can verify a
 2852         contractor’s license and check to see if there are any
 2853         complaints against him or her by calling the Florida
 2854         Department of Business and Professional Regulation.
 2855         You should also ask the contractor for references from
 2856         previous work.
 2857         6. Require all contractors to provide proof of
 2858         insurance before beginning repairs.
 2859         7. Take precautions if the damage requires you to
 2860         leave your home, including securing your property and
 2861         turning off your gas, water, and electricity, and
 2862         contacting your insurance company and provide a phone
 2863         number where you can be reached.
 2864         Section 21. Paragraphs (a) and (b) of subsection (2) and
 2865  subsection (13) of section 627.7152, Florida Statutes, are
 2866  amended to read:
 2867         627.7152 Assignment agreements.—
 2868         (2)(a) An assignment agreement must:
 2869         1. Be executed under a residential property insurance
 2870  policy or under a commercial property insurance policy as that
 2871  term is defined in s. 627.0625(1), issued on or after July 1,
 2872  2019, and before January 1, 2023.
 2873         2. Be in writing and executed by and between the assignor
 2874  and the assignee.
 2875         3.2. Contain a provision that allows the assignor to
 2876  rescind the assignment agreement without a penalty or fee by
 2877  submitting a written notice of rescission signed by the assignor
 2878  to the assignee within 14 days after the execution of the
 2879  agreement, at least 30 days after the date work on the property
 2880  is scheduled to commence if the assignee has not substantially
 2881  performed, or at least 30 days after the execution of the
 2882  agreement if the agreement does not contain a commencement date
 2883  and the assignee has not begun substantial work on the property.
 2884         4.3. Contain a provision requiring the assignee to provide
 2885  a copy of the executed assignment agreement to the insurer
 2886  within 3 business days after the date on which the assignment
 2887  agreement is executed or the date on which work begins,
 2888  whichever is earlier. Delivery of the copy of the assignment
 2889  agreement to the insurer may be made:
 2890         a. By personal service, overnight delivery, or electronic
 2891  transmission, with evidence of delivery in the form of a receipt
 2892  or other paper or electronic acknowledgment by the insurer; or
 2893         b. To the location designated for receipt of such
 2894  agreements as specified in the policy.
 2895         5.4. Contain a written, itemized, per-unit cost estimate of
 2896  the services to be performed by the assignee.
 2897         6.5. Relate only to work to be performed by the assignee
 2898  for services to protect, repair, restore, or replace a dwelling
 2899  or structure or to mitigate against further damage to such
 2900  property.
 2901         7.6. Contain the following notice in 18-point uppercase and
 2902  boldfaced type:
 2903  
 2904         YOU ARE AGREEING TO GIVE UP CERTAIN RIGHTS YOU HAVE
 2905         UNDER YOUR INSURANCE POLICY TO A THIRD PARTY, WHICH
 2906         MAY RESULT IN LITIGATION AGAINST YOUR INSURER. PLEASE
 2907         READ AND UNDERSTAND THIS DOCUMENT BEFORE SIGNING IT.
 2908         YOU HAVE THE RIGHT TO CANCEL THIS AGREEMENT WITHOUT
 2909         PENALTY WITHIN 14 DAYS AFTER THE DATE THIS AGREEMENT
 2910         IS EXECUTED, AT LEAST 30 DAYS AFTER THE DATE WORK ON
 2911         THE PROPERTY IS SCHEDULED TO COMMENCE IF THE ASSIGNEE
 2912         HAS NOT SUBSTANTIALLY PERFORMED, OR AT LEAST 30 DAYS
 2913         AFTER THE EXECUTION OF THE AGREEMENT IF THE AGREEMENT
 2914         DOES NOT CONTAIN A COMMENCEMENT DATE AND THE ASSIGNEE
 2915         HAS NOT BEGUN SUBSTANTIAL WORK ON THE PROPERTY.
 2916         HOWEVER, YOU ARE OBLIGATED FOR PAYMENT OF ANY
 2917         CONTRACTED WORK PERFORMED BEFORE THE AGREEMENT IS
 2918         RESCINDED. THIS AGREEMENT DOES NOT CHANGE YOUR
 2919         OBLIGATION TO PERFORM THE DUTIES REQUIRED UNDER YOUR
 2920         PROPERTY INSURANCE POLICY.
 2921  
 2922         8.7. Contain a provision requiring the assignee to
 2923  indemnify and hold harmless the assignor from all liabilities,
 2924  damages, losses, and costs, including, but not limited to,
 2925  attorney fees.
 2926         (b) An assignment agreement may not contain:
 2927         1. A penalty or fee for rescission under subparagraph (a)3.
 2928  (a)2.;
 2929         2. A check or mortgage processing fee;
 2930         3. A penalty or fee for cancellation of the agreement; or
 2931         4. An administrative fee.
 2932         (13) Except as provided in subsection (11), a policyholder
 2933  may not assign, in whole or in part, any post-loss insurance
 2934  benefit under any residential property insurance policy or under
 2935  any commercial property insurance policy as that term is defined
 2936  in s. 627.0625(1), issued on or after January 1, 2023. An
 2937  attempt to assign post-loss property insurance benefits under
 2938  such a policy is void, invalid, and unenforceable This section
 2939  applies to an assignment agreement executed on or after July 1,
 2940  2019.
 2941         Section 22. Paragraph (f) of subsection (3) of section
 2942  627.7154, Florida Statutes, is amended, and paragraph (g) is
 2943  added to that subsection, to read:
 2944         627.7154 Property Insurer Stability Unit; duties and
 2945  required reports.—
 2946         (3) The insurer stability unit shall, at a minimum:
 2947         (f) On January 1 and July 1 of each year, provide a report
 2948  on the status of the homeowners’ and condominium unit owners’
 2949  insurance market to the Governor, the President of the Senate,
 2950  the Speaker of the House of Representatives, the Minority Leader
 2951  of the Senate, the Minority Leader of the House of
 2952  Representatives, and the chairs of the legislative committees
 2953  with jurisdiction over matters of insurance showing:
 2954         1. Litigation practices and outcomes of insurance
 2955  companies.
 2956         2. Percentage of homeowners and condominium unit owners who
 2957  obtain insurance in the voluntary market.
 2958         3. Percentage of homeowners and condominium unit owners who
 2959  obtain insurance from the Citizens Property Insurance
 2960  Corporation.
 2961         4. Profitability of the homeowners’ and condominium unit
 2962  owners’ lines of insurance in this state, including a comparison
 2963  with similar lines of insurance in other hurricane-prone states
 2964  and with the national average.
 2965         5. Average premiums charged for homeowners’ and condominium
 2966  unit owners’ insurance in each of the 67 counties in this state.
 2967         6. Results of the latest annual catastrophe stress tests of
 2968  all domestic insurers and insurers that are commercially
 2969  domiciled in this state.
 2970         7. The availability of reinsurance in the personal lines
 2971  insurance market.
 2972         8. The number of property and casualty insurance carriers
 2973  referred to the insurer stability unit for enhanced monitoring,
 2974  including the reason for the referral.
 2975         9. The number of referrals to the insurer stability unit
 2976  which were deemed appropriate for enhanced monitoring, including
 2977  the reason for the monitoring.
 2978         10. The name of any insurer against which delinquency
 2979  proceedings were instituted, including the grounds for
 2980  rehabilitation pursuant to s. 631.051 and the date that each
 2981  insurer was deemed impaired of capital or surplus, as the terms
 2982  impairment of capital and impairment of surplus are defined in
 2983  s. 631.011, or insolvent, as the term insolvency is defined in
 2984  s. 631.011; a concise statement of the circumstances that led to
 2985  the insurer’s delinquency; and a summary of the actions taken by
 2986  the insurer and the office to avoid delinquency.
 2987         11. The name of any insurer that is the subject of a market
 2988  conduct examination that found the insurer exhibited a pattern
 2989  or practice of one or more willful unfair insurance trade
 2990  practice violations with regard to its use of appraisal,
 2991  including, but not limited to, compelling insureds to
 2992  participate in appraisal under a property insurance policy in
 2993  order to secure full payment or settlement of claims, and a
 2994  summary of the findings of such market conduct examination.
 2995         12. Recommendations for improvements to the regulation of
 2996  the homeowners’ and condominium unit owners’ insurance market
 2997  and an indication of whether such improvements require any
 2998  change to existing laws or rules.
 2999         13.12. Identification of any trends that may warrant
 3000  attention in the future.
 3001         (g)Publish on the office’s website a list of all insurers
 3002  referenced in subparagraph (f)11. and a link to the market
 3003  conduct reports regarding such insurers.
 3004         Section 23. Subsection (3) of section 631.252, Florida
 3005  Statutes, is amended to read:
 3006         631.252 Continuation of coverage.—
 3007         (3) The 30-day coverage continuation period provided in
 3008  paragraph (1)(a) may not in no event be extended unless the
 3009  office determines, based on a reasonable belief, that market
 3010  conditions are such that policies of residential property
 3011  insurance coverage cannot be placed with an authorized insurer
 3012  within 30 days and that an additional 15 days is needed to place
 3013  such coverage; and failure of actual notice to the policyholder
 3014  of the insolvency of the insurer, of commencement of a
 3015  delinquency proceeding, or of expiration of the extension period
 3016  does not affect such expiration.
 3017         Section 24. Present subsections (6) through (8) of section
 3018  768.79, Florida Statutes, are redesignated as subsections (7)
 3019  through (9), respectively, and a new subsection (6) is added to
 3020  that section, to read:
 3021         768.79 Offer of judgment and demand for judgment.—
 3022         (6) For a breach of contract action, a property insurer may
 3023  make a joint offer of judgment or settlement that is conditioned
 3024  on the mutual acceptance of all the joint offerees.
 3025         Section 25. For the 2022-2023 fiscal year, the sum of
 3026  $1,757,982 in recurring funds is appropriated from the Insurance
 3027  Regulatory Trust Fund to the Office of Insurance Regulation with
 3028  associated salary rate of 844,464. From these funds, $1,356,615
 3029  is appropriated in the Salaries and Benefits appropriation
 3030  category, $400,000 is appropriated in the Other Personal
 3031  Services appropriation category, and $1,367 is appropriated in
 3032  the Transfer to Department of Management Services - Human
 3033  Resources Services Purchased Per Statewide Contract
 3034  appropriation category. The funds shall be utilized for the
 3035  recruitment and retention of personnel within the office to
 3036  ensure the ongoing monitoring of insurance company products and
 3037  services, as well as the financial condition of licensed
 3038  insurance companies. The funds shall be used to implement this
 3039  act.
 3040         Section 26. Except as otherwise expressly provided in this
 3041  act, this act shall take effect upon becoming a law.