Florida Senate - 2005                        SENATOR AMENDMENT
    Bill No. CS for CS for SB 1488
                        Barcode 793608
                            CHAMBER ACTION
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11  Senator Garcia moved the following substitute for amendment
12  (552756):
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14         Senate Amendment (with title amendment) 
15         On page 18, line 6, through
16            page 40, line 10, delete those lines
17  
18  and insert:  
19         Section 7.  Paragraphs (a), (c), and (q) of subsection
20  (6) of section 627.351, Florida Statutes, are amended to read:
21         627.351  Insurance risk apportionment plans.--
22         (6)  CITIZENS PROPERTY INSURANCE CORPORATION.--
23         (a)1.  The Legislature finds that actual and threatened
24  catastrophic losses to property in this state from hurricanes
25  have caused insurers to be unwilling or unable to provide
26  property insurance coverage to the extent sought and needed.
27  It is in the public interest and a public purpose to assist in
28  assuring that property in the state is insured so as to
29  facilitate the remediation, reconstruction, and replacement of
30  damaged or destroyed property in order to reduce or avoid the
31  negative effects otherwise resulting to the public health,
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Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1488 Barcode 793608 1 safety, and welfare; to the economy of the state; and to the 2 revenues of the state and local governments needed to provide 3 for the public welfare. It is necessary, therefore, to provide 4 property insurance to applicants who are in good faith 5 entitled to procure insurance through the voluntary market but 6 are unable to do so. The Legislature intends by this 7 subsection that property insurance be provided and that it 8 continues, as long as necessary, through an entity organized 9 to achieve efficiencies and economies, while providing service 10 to policyholders, applicants, and agents that is no less than 11 the quality generally provided in the voluntary market, all 12 toward the achievement of the foregoing public purposes. 13 Because it is essential for the corporation to have the 14 maximum financial resources to pay claims following a 15 catastrophic hurricane, it is the intent of the Legislature 16 that the income of the corporation be exempt from federal 17 income taxation and that interest on the debt obligations 18 issued by the corporation be exempt from federal income 19 taxation. 20 2. The Residential Property and Casualty Joint 21 Underwriting Association originally created by this statute 22 shall be known, as of July 1, 2002, as the Citizens Property 23 Insurance Corporation. The corporation shall provide insurance 24 for residential and commercial property, for applicants who 25 are in good faith entitled, but are unable, to procure 26 insurance through the voluntary market. The corporation shall 27 operate pursuant to a plan of operation approved by order of 28 the office. The plan is subject to continuous review by the 29 office. The office may, by order, withdraw approval of all or 30 part of a plan if the office determines that conditions have 31 changed since approval was granted and that the purposes of 2 4:39 PM 05/05/05 s1488c2c-40-j08
Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1488 Barcode 793608 1 the plan require changes in the plan. For the purposes of this 2 subsection, residential coverage includes both personal lines 3 residential coverage, which consists of the type of coverage 4 provided by homeowner's, mobile home owner's, dwelling, 5 tenant's, condominium unit owner's, and similar policies, and 6 commercial lines residential coverage, which consists of the 7 type of coverage provided by condominium association, 8 apartment building, and similar policies. 9 3. It is the intent of the Legislature that 10 policyholders, applicants, and agents of the corporation 11 receive service and treatment of the highest possible level 12 but never less than that generally provided in the voluntary 13 market. It also is intended that the corporation be held to 14 service standards no less than those applied to insurers in 15 the voluntary market by the office with respect to 16 responsiveness, timeliness, customer courtesy, and overall 17 dealings with policyholders, applicants, or agents of the 18 corporation. 19 (c) The plan of operation of the corporation: 20 1. Must provide for adoption of residential property 21 and casualty insurance policy forms and commercial residential 22 and nonresidential property insurance forms, which forms must 23 be approved by the office prior to use. The corporation shall 24 adopt the following policy forms: 25 a. Standard personal lines policy forms that are 26 comprehensive multiperil policies providing full coverage of a 27 residential property equivalent to the coverage provided in 28 the private insurance market under an HO-3, HO-4, or HO-6 29 policy. 30 b. Basic personal lines policy forms that are policies 31 similar to an HO-8 policy or a dwelling fire policy that 3 4:39 PM 05/05/05 s1488c2c-40-j08
Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1488 Barcode 793608 1 provide coverage meeting the requirements of the secondary 2 mortgage market, but which coverage is more limited than the 3 coverage under a standard policy. 4 c. Commercial lines residential policy forms that are 5 generally similar to the basic perils of full coverage 6 obtainable for commercial residential structures in the 7 admitted voluntary market. 8 d. Personal lines and commercial lines residential 9 property insurance forms that cover the peril of wind only. 10 The forms are applicable only to residential properties 11 located in areas eligible for coverage under the high-risk 12 account referred to in sub-subparagraph (b)2.a. 13 e. Commercial lines nonresidential property insurance 14 forms that cover the peril of wind only. The forms are 15 applicable only to nonresidential properties located in areas 16 eligible for coverage under the high-risk account referred to 17 in sub-subparagraph (b)2.a. 18 2.a. Must provide that the corporation adopt a program 19 in which the corporation and authorized insurers enter into 20 quota share primary insurance agreements for hurricane 21 coverage, as defined in s. 627.4025(2)(a), for eligible risks, 22 and adopt property insurance forms for eligible risks which 23 cover the peril of wind only. As used in this subsection, the 24 term: 25 (I) "Quota share primary insurance" means an 26 arrangement in which the primary hurricane coverage of an 27 eligible risk is provided in specified percentages by the 28 corporation and an authorized insurer. The corporation and 29 authorized insurer are each solely responsible for a specified 30 percentage of hurricane coverage of an eligible risk as set 31 forth in a quota share primary insurance agreement between the 4 4:39 PM 05/05/05 s1488c2c-40-j08
Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1488 Barcode 793608 1 corporation and an authorized insurer and the insurance 2 contract. The responsibility of the corporation or authorized 3 insurer to pay its specified percentage of hurricane losses of 4 an eligible risk, as set forth in the quota share primary 5 insurance agreement, may not be altered by the inability of 6 the other party to the agreement to pay its specified 7 percentage of hurricane losses. Eligible risks that are 8 provided hurricane coverage through a quota share primary 9 insurance arrangement must be provided policy forms that set 10 forth the obligations of the corporation and authorized 11 insurer under the arrangement, clearly specify the percentages 12 of quota share primary insurance provided by the corporation 13 and authorized insurer, and conspicuously and clearly state 14 that neither the authorized insurer nor the corporation may be 15 held responsible beyond its specified percentage of coverage 16 of hurricane losses. 17 (II) "Eligible risks" means personal lines residential 18 and commercial lines residential risks that meet the 19 underwriting criteria of the corporation and are located in 20 areas that were eligible for coverage by the Florida Windstorm 21 Underwriting Association on January 1, 2002. 22 b. The corporation may enter into quota share primary 23 insurance agreements with authorized insurers at corporation 24 coverage levels of 90 percent and 50 percent. 25 c. If the corporation determines that additional 26 coverage levels are necessary to maximize participation in 27 quota share primary insurance agreements by authorized 28 insurers, the corporation may establish additional coverage 29 levels. However, the corporation's quota share primary 30 insurance coverage level may not exceed 90 percent. 31 d. Any quota share primary insurance agreement entered 5 4:39 PM 05/05/05 s1488c2c-40-j08
Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1488 Barcode 793608 1 into between an authorized insurer and the corporation must 2 provide for a uniform specified percentage of coverage of 3 hurricane losses, by county or territory as set forth by the 4 corporation board, for all eligible risks of the authorized 5 insurer covered under the quota share primary insurance 6 agreement. 7 e. Any quota share primary insurance agreement entered 8 into between an authorized insurer and the corporation is 9 subject to review and approval by the office. However, such 10 agreement shall be authorized only as to insurance contracts 11 entered into between an authorized insurer and an insured who 12 is already insured by the corporation for wind coverage. 13 f. For all eligible risks covered under quota share 14 primary insurance agreements, the exposure and coverage levels 15 for both the corporation and authorized insurers shall be 16 reported by the corporation to the Florida Hurricane 17 Catastrophe Fund. For all policies of eligible risks covered 18 under quota share primary insurance agreements, the 19 corporation and the authorized insurer shall maintain complete 20 and accurate records for the purpose of exposure and loss 21 reimbursement audits as required by Florida Hurricane 22 Catastrophe Fund rules. The corporation and the authorized 23 insurer shall each maintain duplicate copies of policy 24 declaration pages and supporting claims documents. 25 g. The corporation board shall establish in its plan 26 of operation standards for quota share agreements which ensure 27 that there is no discriminatory application among insurers as 28 to the terms of quota share agreements, pricing of quota share 29 agreements, incentive provisions if any, and consideration 30 paid for servicing policies or adjusting claims. 31 h. The quota share primary insurance agreement between 6 4:39 PM 05/05/05 s1488c2c-40-j08
Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1488 Barcode 793608 1 the corporation and an authorized insurer must set forth the 2 specific terms under which coverage is provided, including, 3 but not limited to, the sale and servicing of policies issued 4 under the agreement by the insurance agent of the authorized 5 insurer producing the business, the reporting of information 6 concerning eligible risks, the payment of premium to the 7 corporation, and arrangements for the adjustment and payment 8 of hurricane claims incurred on eligible risks by the claims 9 adjuster and personnel of the authorized insurer. Entering 10 into a quota sharing insurance agreement between the 11 corporation and an authorized insurer shall be voluntary and 12 at the discretion of the authorized insurer. 13 3. May provide that the corporation may employ or 14 otherwise contract with individuals or other entities to 15 provide administrative or professional services that may be 16 appropriate to effectuate the plan. The corporation shall have 17 the power to borrow funds, by issuing bonds or by incurring 18 other indebtedness, and shall have other powers reasonably 19 necessary to effectuate the requirements of this subsection, 20 including without limitation, the power to issue bonds and 21 incur other indebtedness in order to refinance outstanding 22 bonds or other indebtedness. The corporation may, but is not 23 required to, seek judicial validation of its bonds or other 24 indebtedness under chapter 75. The corporation may issue bonds 25 or incur other indebtedness, or have bonds issued on its 26 behalf by a unit of local government pursuant to subparagraph 27 (g)2., in the absence of a hurricane or other weather-related 28 event, upon a determination by the corporation, subject to 29 approval by the office, that such action would enable it to 30 efficiently meet the financial obligations of the corporation 31 and that such financings are reasonably necessary to 7 4:39 PM 05/05/05 s1488c2c-40-j08
Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1488 Barcode 793608 1 effectuate the requirements of this subsection. The 2 corporation is authorized to take all actions needed to 3 facilitate tax-free status for any such bonds or indebtedness, 4 including formation of trusts or other affiliated entities. 5 The corporation shall have the authority to pledge 6 assessments, projected recoveries from the Florida Hurricane 7 Catastrophe Fund, other reinsurance recoverables, market 8 equalization and other surcharges, and other funds available 9 to the corporation as security for bonds or other 10 indebtedness. In recognition of s. 10, Art. I of the State 11 Constitution, prohibiting the impairment of obligations of 12 contracts, it is the intent of the Legislature that no action 13 be taken whose purpose is to impair any bond indenture or 14 financing agreement or any revenue source committed by 15 contract to such bond or other indebtedness. 16 4.a. Must require that the corporation operate subject 17 to the supervision and approval of a board of governors 18 consisting of 8 7 individuals who are residents of this state, 19 from different geographical areas of this state, appointed by 20 the Chief Financial Officer. The Governor, the Chief Financial 21 Officer, the President of the Senate, and the Speaker of the 22 House of Representatives shall each appoint two members of the 23 board, effective August 1, 2005. At least one of the two 24 members appointed by each appointing officer must have 25 demonstrated expertise in insurance. The Chief Financial 26 Officer shall designate one of the appointees as chair. All 27 board members serve at the pleasure of the appointing officer 28 Chief Financial Officer. All board members, including the 29 chair, must be appointed to serve for 3-year terms beginning 30 annually on a date designated by the plan. Any board vacancy 31 shall be filled for the unexpired term by the appointing 8 4:39 PM 05/05/05 s1488c2c-40-j08
Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1488 Barcode 793608 1 officer Chief Financial Officer. The Chief Financial Officer 2 shall appoint a technical advisory group to provide 3 information and advice to the board of governors in connection 4 with the board's duties under this subsection. The executive 5 director and senior managers of the corporation shall be 6 engaged by the board, as recommended by the Chief Financial 7 Officer and serve at the pleasure of the board Chief Financial 8 Officer. The executive director is responsible for employing 9 other staff as the corporation may require, subject to review 10 and concurrence by the board and office of the Chief Financial 11 Officer. 12 b. The board shall create a Market Accountability 13 Advisory Committee to assist the corporation in developing 14 awareness of its rates and its customer and agent service 15 levels in relationship to the voluntary market insurers 16 writing similar coverage. The members of the advisory 17 committee shall consist of the following 11 persons, one of 18 whom must be elected chair by the members of the committee: 19 four representatives, one appointed by the Florida Association 20 of Insurance Agents, one by the Florida Association of 21 Insurance and Financial Advisors, one by the Professional 22 Insurance Agents of Florida, and one by the Latin American 23 Association of Insurance Agencies; three representatives 24 appointed by the insurers with the three highest voluntary 25 market share of residential property insurance business in the 26 state; one representative from the Office of Insurance 27 Regulation; one consumer appointed by the board who is insured 28 by the corporation at the time of appointment to the 29 committee; one representative appointed by the Florida 30 Association of Realtors; and one representative appointed by 31 the Florida Bankers Association. All members must serve for 9 4:39 PM 05/05/05 s1488c2c-40-j08
Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1488 Barcode 793608 1 3-year terms and may serve for consecutive terms. The 2 committee shall report to the corporation at each board 3 meeting on insurance market issues which may include rates and 4 rate competition with the voluntary market; service, including 5 policy issuance, claims processing, and general responsiveness 6 to policyholders, applicants, and agents; and matters relating 7 to depopulation. 8 5. Must provide a procedure for determining the 9 eligibility of a risk for coverage, as follows: 10 a. Subject to the provisions of s. 627.3517, with 11 respect to personal lines residential risks, if the risk is 12 offered coverage from an authorized insurer at the insurer's 13 approved rate under either a standard policy including wind 14 coverage or, if consistent with the insurer's underwriting 15 rules as filed with the office, a basic policy including wind 16 coverage, the risk is not eligible for any policy issued by 17 the corporation. If the risk is not able to obtain any such 18 offer, the risk is eligible for either a standard policy 19 including wind coverage or a basic policy including wind 20 coverage issued by the corporation; however, if the risk could 21 not be insured under a standard policy including wind coverage 22 regardless of market conditions, the risk shall be eligible 23 for a basic policy including wind coverage unless rejected 24 under subparagraph 8. The corporation shall determine the type 25 of policy to be provided on the basis of objective standards 26 specified in the underwriting manual and based on generally 27 accepted underwriting practices. 28 (I) If the risk accepts an offer of coverage through 29 the market assistance plan or an offer of coverage through a 30 mechanism established by the corporation before a policy is 31 issued to the risk by the corporation or during the first 30 10 4:39 PM 05/05/05 s1488c2c-40-j08
Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1488 Barcode 793608 1 days of coverage by the corporation, and the producing agent 2 who submitted the application to the plan or to the 3 corporation is not currently appointed by the insurer, the 4 insurer shall: 5 (A) Pay to the producing agent of record of the 6 policy, for the first year, an amount that is the greater of 7 the insurer's usual and customary commission for the type of 8 policy written or a fee equal to the usual and customary 9 commission of the corporation; or 10 (B) Offer to allow the producing agent of record of 11 the policy to continue servicing the policy for a period of 12 not less than 1 year and offer to pay the agent the greater of 13 the insurer's or the corporation's usual and customary 14 commission for the type of policy written. 15 16 If the producing agent is unwilling or unable to accept 17 appointment, the new insurer shall pay the agent in accordance 18 with sub-sub-sub-subparagraph (A). 19 (II) When the corporation enters into a contractual 20 agreement for a take-out plan, the producing agent of record 21 of the corporation policy is entitled to retain any unearned 22 commission on the policy, and the insurer shall: 23 (A) Pay to the producing agent of record of the 24 corporation policy, for the first year, an amount that is the 25 greater of the insurer's usual and customary commission for 26 the type of policy written or a fee equal to the usual and 27 customary commission of the corporation; or 28 (B) Offer to allow the producing agent of record of 29 the corporation policy to continue servicing the policy for a 30 period of not less than 1 year and offer to pay the agent the 31 greater of the insurer's or the corporation's usual and 11 4:39 PM 05/05/05 s1488c2c-40-j08
Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1488 Barcode 793608 1 customary commission for the type of policy written. 2 3 If the producing agent is unwilling or unable to accept 4 appointment, the new insurer shall pay the agent in accordance 5 with sub-sub-sub-subparagraph (A). 6 b. With respect to commercial lines residential risks, 7 if the risk is offered coverage under a policy including wind 8 coverage from an authorized insurer at its approved rate, the 9 risk is not eligible for any policy issued by the corporation. 10 If the risk is not able to obtain any such offer, the risk is 11 eligible for a policy including wind coverage issued by the 12 corporation. 13 (I) If the risk accepts an offer of coverage through 14 the market assistance plan or an offer of coverage through a 15 mechanism established by the corporation before a policy is 16 issued to the risk by the corporation or during the first 30 17 days of coverage by the corporation, and the producing agent 18 who submitted the application to the plan or the corporation 19 is not currently appointed by the insurer, the insurer shall: 20 (A) Pay to the producing agent of record of the 21 policy, for the first year, an amount that is the greater of 22 the insurer's usual and customary commission for the type of 23 policy written or a fee equal to the usual and customary 24 commission of the corporation; or 25 (B) Offer to allow the producing agent of record of 26 the policy to continue servicing the policy for a period of 27 not less than 1 year and offer to pay the agent the greater of 28 the insurer's or the corporation's usual and customary 29 commission for the type of policy written. 30 31 If the producing agent is unwilling or unable to accept 12 4:39 PM 05/05/05 s1488c2c-40-j08
Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1488 Barcode 793608 1 appointment, the new insurer shall pay the agent in accordance 2 with sub-sub-sub-subparagraph (A). 3 (II) When the corporation enters into a contractual 4 agreement for a take-out plan, the producing agent of record 5 of the corporation policy is entitled to retain any unearned 6 commission on the policy, and the insurer shall: 7 (A) Pay to the producing agent of record of the 8 corporation policy, for the first year, an amount that is the 9 greater of the insurer's usual and customary commission for 10 the type of policy written or a fee equal to the usual and 11 customary commission of the corporation; or 12 (B) Offer to allow the producing agent of record of 13 the corporation policy to continue servicing the policy for a 14 period of not less than 1 year and offer to pay the agent the 15 greater of the insurer's or the corporation's usual and 16 customary commission for the type of policy written. 17 18 If the producing agent is unwilling or unable to accept 19 appointment, the new insurer shall pay the agent in accordance 20 with sub-sub-sub-subparagraph (A). 21 6. Must include rules for classifications of risks and 22 rates therefor. 23 7. Must provide that if premium and investment income 24 for an account attributable to a particular calendar year are 25 in excess of projected losses and expenses for the account 26 attributable to that year, such excess shall be held in 27 surplus in the account. Such surplus shall be available to 28 defray deficits in that account as to future years and shall 29 be used for that purpose prior to assessing assessable 30 insurers and assessable insureds as to any calendar year. 31 8. Must provide objective criteria and procedures to 13 4:39 PM 05/05/05 s1488c2c-40-j08
Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1488 Barcode 793608 1 be uniformly applied for all applicants in determining whether 2 an individual risk is so hazardous as to be uninsurable. In 3 making this determination and in establishing the criteria and 4 procedures, the following shall be considered: 5 a. Whether the likelihood of a loss for the individual 6 risk is substantially higher than for other risks of the same 7 class; and 8 b. Whether the uncertainty associated with the 9 individual risk is such that an appropriate premium cannot be 10 determined. 11 12 The acceptance or rejection of a risk by the corporation shall 13 be construed as the private placement of insurance, and the 14 provisions of chapter 120 shall not apply. 15 9. Must provide that the corporation shall make its 16 best efforts to procure catastrophe reinsurance at reasonable 17 rates, to cover its projected 100-year probable maximum loss 18 as determined by the board of governors. 19 10. Must provide that in the event of regular deficit 20 assessments under sub-subparagraph (b)3.a. or sub-subparagraph 21 (b)3.b., in the personal lines account, the commercial lines 22 residential account, or the high-risk account, the corporation 23 shall levy upon corporation policyholders in its next rate 24 filing, or by a separate rate filing solely for this purpose, 25 a market equalization surcharge arising from a regular 26 assessment in such account in a percentage equal to the total 27 amount of such regular assessments divided by the aggregate 28 statewide direct written premium for subject lines of business 29 for the prior calendar year. Market equalization surcharges 30 under this subparagraph are not considered premium and are not 31 subject to commissions, fees, or premium taxes; however, 14 4:39 PM 05/05/05 s1488c2c-40-j08
Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1488 Barcode 793608 1 failure to pay a market equalization surcharge shall be 2 treated as failure to pay premium. 3 11. The policies issued by the corporation must 4 provide that, if the corporation or the market assistance plan 5 obtains an offer from an authorized insurer to cover the risk 6 at its approved rates, the risk is no longer eligible for 7 renewal through the corporation. 8 12. Corporation policies and applications must include 9 a notice that the corporation policy could, under this 10 section, be replaced with a policy issued by an authorized 11 insurer that does not provide coverage identical to the 12 coverage provided by the corporation. The notice shall also 13 specify that acceptance of corporation coverage creates a 14 conclusive presumption that the applicant or policyholder is 15 aware of this potential. 16 13. May establish, subject to approval by the office, 17 different eligibility requirements and operational procedures 18 for any line or type of coverage for any specified county or 19 area if the board determines that such changes to the 20 eligibility requirements and operational procedures are 21 justified due to the voluntary market being sufficiently 22 stable and competitive in such area or for such line or type 23 of coverage and that consumers who, in good faith, are unable 24 to obtain insurance through the voluntary market through 25 ordinary methods would continue to have access to coverage 26 from the corporation. When coverage is sought in connection 27 with a real property transfer, such requirements and 28 procedures shall not provide for an effective date of coverage 29 later than the date of the closing of the transfer as 30 established by the transferor, the transferee, and, if 31 applicable, the lender. 15 4:39 PM 05/05/05 s1488c2c-40-j08
Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1488 Barcode 793608 1 14. Must provide that, with respect to the high-risk 2 account, any assessable insurer with a surplus as to 3 policyholders of $25 million or less writing 25 percent or 4 more of its total countrywide property insurance premiums in 5 this state may petition the office, within the first 90 days 6 of each calendar year, to qualify as a limited apportionment 7 company. In no event shall a limited apportionment company be 8 required to participate in the portion of any assessment, 9 within the high-risk account, pursuant to sub-subparagraph 10 (b)3.a. or sub-subparagraph (b)3.b. in the aggregate which 11 exceeds $50 million after payment of available high-risk 12 account funds in any calendar year. However, a limited 13 apportionment company shall collect from its policyholders any 14 emergency assessment imposed under sub-subparagraph (b)3.d. 15 The plan shall provide that, if the office determines that any 16 regular assessment will result in an impairment of the surplus 17 of a limited apportionment company, the office may direct that 18 all or part of such assessment be deferred as provided in 19 subparagraph (g)4. However, there shall be no limitation or 20 deferment of an emergency assessment to be collected from 21 policyholders under sub-subparagraph (b)3.d. 22 15. Must provide that the corporation appoint as its 23 licensed agents only those agents who also hold an appointment 24 as defined in s. 626.015(3) with an insurer who at the time of 25 the agent's initial appointment by the corporation is 26 authorized to write and is actually writing personal lines 27 residential property coverage, commercial residential property 28 coverage, or commercial nonresidential property coverage 29 within the state. 30 (q) The corporation shall not require the securing of 31 flood insurance as a condition of coverage if the property 16 4:39 PM 05/05/05 s1488c2c-40-j08
Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1488 Barcode 793608 1 risk of the insured or applicant is located in a Special Flood 2 Hazard Area as defined by the Federal Emergency Management 3 Agency for the National Flood Insurance Program. executes a 4 form approved by the office affirming that Flood insurance is 5 not provided by the corporation and that if flood insurance is 6 not secured by the applicant or insured in addition to 7 coverage by the corporation, the risk will not be covered for 8 flood damage. A corporation policyholder that does electing 9 not to secure flood insurance and makes a claim executing a 10 form as provided herein making a claim for water damage 11 against the corporation shall have the burden of proving the 12 damage was not caused by flooding. Notwithstanding other 13 provisions of this subsection, the corporation may deny 14 coverage or refuse to issue or renew a policy to an applicant 15 or insured who refuses to purchase flood insurance as required 16 by this subsection to execute the form described herein. 17 18 19 ================ T I T L E A M E N D M E N T =============== 20 And the title is amended as follows: 21 On page 2, lines 9 through 22, delete those lines 22 23 and insert: 24 amending s. 627.351, F.S.; revising the 25 appointments to the board and the approval of 26 officers and employees of the corporation; 27 providing additional legislative intent 28 relating to the Citizens Property Insurance 29 Corporation; authorizing the corporation to 30 issue bonds and incur indebtedness for certain 31 purposes; requiring creation of a Market 17 4:39 PM 05/05/05 s1488c2c-40-j08
Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1488 Barcode 793608 1 Accountability Advisory Committee to assist the 2 corporation for certain purposes; providing for 3 appointment of committee members; providing for 4 terms; requiring reports to the corporation; 5 revising requirements for the plan of operation 6 of the corporation; requiring the corporation 7 to require the securing of flood insurance as a 8 condition of coverage under certain 9 circumstances; providing requirements and 10 limitations; creating s. 627.40951, 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 18 4:39 PM 05/05/05 s1488c2c-40-j08