HB 1267

1	A bill to be entitled
2	An act relating to property and casualty insurance;
3	transferring, renumbering, and amending ss. 350.061,
4	350.0611, 350.0612, 350.0613, and 350.0614, F.S.;
5	authorizing the Public Counsel to represent the general
6	public before the Office of Insurance Regulation;
7	including certain proceedings related to rules and rate
8	filings for residential property insurance; authorizing
9	the Public Counsel to have access to files of the office,
10	to seek review of orders of the office, to issue reports,
11	recommendations, and proposed orders to the office;
12	specifying where the Public Counsel shall maintain his or
13	her office; authorizing the Joint Legislative Auditing
14	Committee to authorize the Public Counsel to employ
15	certain types of employees; requiring the Office of
16	Insurance Regulation to provide copies of certain filings
17	to the Public Counsel; amending s. 112.3145, F.S.;
18	conforming a cross-reference; amending s. 215.559, F.S.;
19	revising the distribution of funds in the Hurricane Loss
20	Mitigation Program; revising provisions relating to a low-
21	interest loan program; amending s. 408.40, F.S.;
22	conforming a cross-reference; amending s. 624.319, F.S.;
23	authorizing the Public Counsel to have access to certain
24	confidential information held by the Department of
25	Financial Services or the Office of Insurance Regulation;
26	amending s. 627.062, F.S.; deleting provisions that allow
27	an insurer to require arbitration of a rate filing for
28	property and casualty insurance; amending s. 627.0629,
29	F.S.; requiring underwriting rules for homeowners'
30	insurance to be filed with and approved by the Office of
31	Insurance Regulation; providing for filing and approval
32	provisions; amending s. 627.0651, F.S.; abolishing "use
33	and file" rate filings; deleting reference to the filing
34	of specified underwriting rules for homeowners' insurance;
35	amending s. 627.311, F.S.; abolishing "use and file" rate
36	filings; amending s. 627.351, F.S.; deleting a provision
37	authorizing a windstorm underwriting association to
38	require arbitration of a rate filing; amending s.
39	627.4025, F.S.; redefining the term "hurricane coverage"
40	to include coverage for damage from wind-driven water;
41	amending s. 627.4133, F.S.; prohibiting an insurer from
42	canceling or nonrenewing a residential property insurance
43	policy for certain reasons; amending s. 627.4145, F.S.;
44	increasing the minimum score on the reading ease test for
45	insurance policies; creating s. 627.41494, F.S.; providing
46	for consumer participation in review of insurance rate
47	changes; providing for public inspection of rate filings;
48	providing for adoption of rules by the Financial Services
49	Commission; requiring insurers to pay costs of consumer
50	advocacy groups under certain circumstances; amending s.
51	627.701, F.S.; revising the hurricane deductibles that
52	insurers must offer for personal lines residential
53	property insurance policies; creating s. 627.70105, F.S.;
54	requiring payment of living expenses required due to
55	uninhabitability of insured property within a specified
56	time; providing an appropriation; providing effective
57	dates.
58
59	Be It Enacted by the Legislature of the State of Florida:
60
61	Section 1.  This act may be cited as the "Homeowners'
62	Defense Act."
63	Section 2.  Section 350.061, Florida Statutes, is
64	transferred, renumbered as section 11.402, Florida Statutes, and
65	subsection (1) of that section is amended to read:
66	11.402 350.061  Public Counsel; appointment; oath;
67	restrictions on Public Counsel and his or her employees.--
68	(1)  The Committee on Public Service Commission Oversight
69	shall appoint a Public Counsel by majority vote of the members
70	of the committee to represent the general public of Florida
71	before the Florida Public Service Commission and the Office of
72	Insurance Regulation. The Public Counsel shall be an attorney
73	admitted to practice before the Florida Supreme Court and shall
74	serve at the pleasure of the Committee on Public Service
75	Commission Oversight, subject to biennial reconfirmation by the
76	committee. The Public Counsel shall perform his or her duties
77	independently. Vacancies in the office shall be filled in the
78	same manner as the original appointment.
79	Section 3.  Section 350.0611, Florida Statutes, is
80	transferred, renumbered as section 11.403, Florida Statutes, and
81	amended to read:
82	11.403 350.0611  Public Counsel; duties and powers.--It
83	shall be the duty of the Public Counsel to provide legal
84	representation for the people of the state in proceedings before
85	the Public Service Commission and the Office of Insurance
86	Regulation and in proceedings before counties pursuant to s.
87	367.171(8). The Public Counsel shall have such powers as are
88	necessary to carry out the duties of his or her office,
89	including, but not limited to, the following specific powers:
90	(1)  To recommend to the Public Service Commission or the
91	counties, by petition, the commencement of any proceeding or
92	action or to appear, in the name of the state or its citizens,
93	in any proceeding or action before the commission or the
94	counties.
95	(2)  To recommend to the Office of Insurance Regulation, by
96	petition, the commencement of, and to appear in the name of the
97	state or its citizens in, any proceeding or action before the
98	office relating to:
99	(a)  Rules governing residential property insurance; or
100	(b)  Rate filings for residential property insurance which,
101	pursuant to standards determined by the office, request an
102	average statewide rate increase of 10 percent or greater as
103	compared to the current rates in effect or the rates in effect
104	12 months prior to the proposed effective date.
105
106	The Public Counsel may not stay any final order of the Office of
107	Insurance Regulation.
108	(3)  To and urge in any proceeding or action to which he or
109	she is a party therein any position that which he or she deems
110	to be in the public interest, whether consistent or inconsistent
111	with positions previously adopted by the commission, or the
112	counties, or the office, and use utilize therein all forms of
113	discovery available to attorneys in civil actions generally,
114	subject to protective orders of the commission, or the counties,
115	or the office, which shall be reviewable by summary procedure in
116	the circuit courts of this state.;
117	(4)(2)  To have access to and use of all files, records,
118	and data of the commission, or the counties, or the office
119	available to any other attorney representing parties in a
120	proceeding before the commission, or the counties, or the
121	office.;
122	(5)(3)  In any proceeding in which he or she has
123	participated as a party, to seek review of any determination,
124	finding, or order of the commission, or the counties, or the
125	office, or of any hearing examiner designated by the commission,
126	or the counties, or the office, in the name of the state or its
127	citizens.;
128	(6)(4)  To prepare and issue reports, recommendations, and
129	proposed orders to the commission or office, the Governor, and
130	the Legislature on any matter or subject within the jurisdiction
131	of the commission or office, and to make such recommendations as
132	he or she deems appropriate for legislation relative to
133	commission or office procedures, rules, jurisdiction, personnel,
134	and functions.; and
135	(7)(5)  To appear before other state agencies, federal
136	agencies, and state and federal courts in connection with
137	matters under the jurisdiction of the commission or office, in
138	the name of the state or its citizens.
139	Section 4.  Section 350.0612, Florida Statutes, is
140	transferred, renumbered as section 11.404, Florida Statutes, and
141	amended to read:
142	11.404 350.0612  Public Counsel; location.--The Public
143	Counsel shall maintain his or her office in Leon County on the
144	premises of the commission or, if suitable space there cannot be
145	provided, at such other place convenient to the offices of the
146	Public Services Commission or the Office of Insurance Regulation
147	commissioners as will enable him or her to carry out
148	expeditiously the duties and functions of his or her office.
149	Section 5.  Section 350.0613, Florida Statutes, is
150	transferred, renumbered as section 11.405, Florida Statutes, and
151	amended to read:
152	11.405 350.0613  Public Counsel; employees; receipt of
153	pleadings.--The Joint Legislative Auditing Committee may
154	authorize the Public Counsel to employ clerical and technical
155	assistants whose qualifications, duties, and responsibilities
156	the committee shall from time to time prescribe. The committee
157	may from time to time authorize retention of the services of
158	additional attorneys, actuaries, economists, or experts to the
159	extent that the best interests of the people of the state will
160	be better served thereby, including the retention of expert
161	witnesses and other technical personnel for participation in
162	contested proceedings before the Public Service Commission or
163	Office of Insurance Regulation. The commission shall furnish the
164	Public Counsel with copies of the initial pleadings in all
165	proceedings before the commission. The office shall furnish the
166	Public Counsel with copies of all filings that relate to the
167	jurisdiction of the Public Counsel pursuant to s. 11.403(2).,
168	and If the Public Counsel intervenes as a party in any
169	proceeding he or she shall be served with copies of all
170	subsequent pleadings, exhibits, and prepared testimony, if used.
171	Upon filing notice of intervention, the Public Counsel shall
172	serve all interested parties with copies of such notice and all
173	of his or her subsequent pleadings and exhibits.
174	Section 6.  Section 350.0614, Florida Statutes, is
175	transferred and renumbered as section 11.406, Florida Statutes.
176	Section 7.  Paragraph (b) of subsection (1) of section
177	112.3145, Florida Statutes, is amended to read:
178	112.3145  Disclosure of financial interests and clients
179	represented before agencies.--
180	(1)  For purposes of this section, unless the context
181	otherwise requires, the term:
182	(b)  "Specified state employee" means:
183	1.  Public counsel created by chapter 11 350, an assistant
184	state attorney, an assistant public defender, a full-time state
185	employee who serves as counsel or assistant counsel to any state
186	agency, the Deputy Chief Judge of Compensation Claims, a judge
187	of compensation claims, an administrative law judge, or a
188	hearing officer.
189	2.  Any person employed in the office of the Governor or in
190	the office of any member of the Cabinet if that person is exempt
191	from the Career Service System, except persons employed in
192	clerical, secretarial, or similar positions.
193	3.  Each appointed secretary, assistant secretary, deputy
194	secretary, executive director, assistant executive director, or
195	deputy executive director of each state department, commission,
196	board, or council; unless otherwise provided, the division
197	director, assistant division director, deputy director, bureau
198	chief, and assistant bureau chief of any state department or
199	division; or any person having the power normally conferred upon
200	such persons, by whatever title.
201	4.  The superintendent or institute director of a state
202	mental health institute established for training and research in
203	the mental health field or the warden or director of any major
204	state institution or facility established for corrections,
205	training, treatment, or rehabilitation.
206	5.  Business managers, purchasing agents having the power
207	to make any purchase exceeding the threshold amount provided for
208	in s. 287.017 for CATEGORY ONE, finance and accounting
209	directors, personnel officers, or grants coordinators for any
210	state agency.
211	6.  Any person, other than a legislative assistant exempted
212	by the presiding officer of the house by which the legislative
213	assistant is employed, who is employed in the legislative branch
214	of government, except persons employed in maintenance, clerical,
215	secretarial, or similar positions.
216	7.  Each employee of the Commission on Ethics.
217	Section 8.  Section 215.559, Florida Statutes, is amended
218	to read:
219	215.559  Hurricane Loss Mitigation Program.--
220	(1)  There is created a Hurricane Loss Mitigation Program.
221	The Legislature shall annually appropriate $10 million of the
222	moneys authorized for appropriation under s. 215.555(7)(c) from
223	the Florida Hurricane Catastrophe Fund to the Department of
224	Community Affairs for the purposes set forth in this section.
225	(2)(a)  One Seven million dollars in funds provided in
226	subsection (1) shall be used for programs to improve the wind
227	resistance of residences and mobile homes, including loans,
228	subsidies, grants, demonstration projects, and direct
229	assistance; cooperative programs with local governments and the
230	Federal Government; and other efforts to prevent or reduce
231	losses or reduce the cost of rebuilding after a disaster.
232	(b)  Six million dollars of the funds provided in
233	subsection (1) shall be used for programs to improve the wind
234	resistance of residences to prevent or reduce losses or reduce
235	the cost of rebuilding after a disaster.
236	(c)  The department shall, with the funds authorized in
237	paragraphs (a) and (b), establish a program of low-interest
238	loans to qualified owners of residences and qualified owners of
239	mobile homes. For the purpose of this section, the term "low-
240	interest loan" means any direct loan or loan guarantee issued or
241	backed by such authorized funds to a qualified owner to finance
242	efforts to prevent or reduce losses or reduce the cost of
243	rebuilding after a disaster with a requirement for repayment by
244	the owner. Loans provided under this section shall be made at a
245	rate of up to 2 percent below the qualified loan rate as
246	determined by the department. The terms and conditions of the
247	low-interest loan program, including loan incentive provisions,
248	and the qualifications required of owners of residences and
249	owners of mobile homes shall be determined by the department.
250	(d)(b)  Three million dollars in funds provided in
251	subsection (1) shall be used to retrofit existing facilities
252	used as public hurricane shelters. The department must
253	prioritize the use of these funds for projects included in the
254	September 1, 2000, version of the Shelter Retrofit Report
255	prepared in accordance with s. 252.385(3), and each annual
256	report thereafter. The department must give funding priority to
257	projects in regional planning council regions that have shelter
258	deficits and to projects that maximize use of state funds.
259	(3)  By the 2006-2007 fiscal year, the Department of
260	Community Affairs shall develop a low-interest loan program for
261	homeowners and mobile home owners to retrofit their homes with
262	fixtures or apply construction techniques that have been
263	demonstrated to reduce the amount of damage or loss due to a
264	hurricane. Funding for the program shall be used to subsidize or
265	guaranty private-sector loans for this purpose to qualified
266	homeowners by financial institutions chartered by the state or
267	Federal Government. The department may enter into contracts with
268	financial institutions for this purpose. The department shall
269	establish criteria for determining eligibility for the loans and
270	selecting recipients, standards for retrofitting homes or mobile
271	homes, limitations on loan subsidies and loan guaranties, and
272	other terms and conditions of the program, which must be
273	specified in the department's report to the Legislature on
274	January 1, 2006, required by subsection (8). For the 2005-2006
275	fiscal year, the Department of Community Affairs may use up to
276	$1 million of the funds appropriated pursuant to paragraph
277	(2)(a) to begin the low-interest loan program as a pilot project
278	in one or more counties. The Department of Financial Services,
279	the Office of Financial Regulation, the Florida Housing Finance
280	Corporation, and the Office of Tourism, Trade, and Economic
281	Development shall assist the Department of Community Affairs in
282	establishing the program and pilot project. The department may
283	use up to 2.5 percent of the funds appropriated in any given
284	fiscal year for administering the loan program. The department
285	may adopt rules to implement the program.
286	(3)(4)  Forty percent of the total appropriation in
287	paragraph (2)(a) shall be used to inspect and improve tie-downs
288	for mobile homes. Within 30 days after the effective date of
289	that appropriation, the department shall contract with a public
290	higher educational institution in this state which has previous
291	experience in administering the programs set forth in this
292	subsection to serve as the administrative entity and fiscal
293	agent pursuant to s. 216.346 for the purpose of administering
294	the programs set forth in this subsection in accordance with
295	established policy and procedures. The administrative entity
296	working with the advisory council set up under subsection (5)
297	(6) shall develop a list of mobile home parks and counties that
298	may be eligible to participate in the tie-down program.
299	(4)(5)  Of moneys provided to the Department of Community
300	Affairs in paragraphs paragraph (2)(a) and (b), 10 percent shall
301	be allocated to a Type I Center within the State University
302	System dedicated to hurricane research. The Type I Center shall
303	develop a preliminary work plan approved by the advisory council
304	set forth in subsection (5) (6) to eliminate the state and local
305	barriers to upgrading existing residences, mobile homes, and
306	communities;, research and develop a program for the recycling
307	of existing older mobile homes;, and support programs of
308	research and development relating to hurricane loss reduction
309	devices and techniques for site-built residences. The State
310	University System also shall consult with the Department of
311	Community Affairs and assist the department with the report
312	required under subsection (7) (8).
313	(5)(6)  The Department of Community Affairs shall develop
314	the programs set forth in this section in consultation with an
315	advisory council consisting of a representative designated by
316	the Chief Financial Officer, a representative designated by the
317	Florida Home Builders Association, a representative designated
318	by the Florida Insurance Council, a representative designated by
319	the Federation of Manufactured Home Owners, a representative
320	designated by the Florida Association of Counties, and a
321	representative designated by the Florida Manufactured Housing
322	Association.
323	(6)(7)  Moneys provided to the Department of Community
324	Affairs under this section are intended to supplement other
325	funding sources of the Department of Community Affairs and may
326	not supplant other funding sources of the Department of
327	Community Affairs.
328	(7)(8)  On January 1st of each year, the Department of
329	Community Affairs shall provide a full report and accounting of
330	activities under this section and an evaluation of such
331	activities to the Speaker of the House of Representatives, the
332	President of the Senate, and the Majority and Minority Leaders
333	of the House of Representatives and the Senate.
334	(8)(9)  This section is repealed June 30, 2011.
335	Section 9.  Subsection (1) of section 408.40, Florida
336	Statutes, is amended to read:
337	408.40  Public Counsel.--
338	(1)  Notwithstanding any other provisions of this chapter,
339	the Public Counsel shall represent the public in any proceeding
340	before the agency or its advisory panels in any administrative
341	hearing conducted pursuant to chapter 120 or before any other
342	state and federal agencies and courts in any issue before the
343	agency, any court, or any agency. With respect to any such
344	proceeding, the Public Counsel is subject to the provisions of
345	and may use the powers granted to him or her by ss. 11.402-
346	11.406 350.061-350.0614.
347	Section 10.  Paragraph (b) of subsection (3) of section
348	624.319, Florida Statutes, is amended to read:
349	624.319  Examination and investigation reports.--
350	(3)
351	(b)  Workpapers and other information held by the
352	department or office, and workpapers and other information
353	received from another governmental entity or the National
354	Association of Insurance Commissioners, for the department's or
355	office's use in the performance of its examination or
356	investigation duties pursuant to this section and ss. 624.316,
357	624.3161, 624.317, and 624.318 are confidential and exempt from
358	the provisions of s. 119.07(1) and s. 24(a), Art. I of the State
359	Constitution. This exemption applies to workpapers and other
360	information held by the department or office before, on, or
361	after the effective date of this exemption. Such confidential
362	and exempt information may be disclosed to another governmental
363	entity, if disclosure is necessary for the receiving entity to
364	perform its duties and responsibilities, and may be disclosed to
365	the National Association of Insurance Commissioners. The Public
366	Counsel shall have access to such confidential and exempt
367	information pertaining to residential property insurance at any
368	time. The receiving governmental entity or the association must
369	maintain the confidential and exempt status of the information.
370	The information made confidential and exempt by this paragraph
371	may be used in a criminal, civil, or administrative proceeding
372	so long as the confidential and exempt status of such
373	information is maintained. This paragraph is subject to the Open
374	Government Sunset Review Act of 1995 in accordance with s.
375	119.15 and shall stand repealed on October 2, 2007, unless
376	reviewed and saved from repeal through reenactment by the
377	Legislature.
378	Section 11.  Subsection (2) of section 627.062, Florida
379	Statutes, is amended to read:
380	627.062  Rate standards.--
381	(2)  As to all such classes of insurance:
382	(a)  Insurers or rating organizations shall establish and
383	use rates, rating schedules, or rating manuals to allow the
384	insurer a reasonable rate of return on such classes of insurance
385	written in this state. A copy of rates, rating schedules, rating
386	manuals, premium credits or discount schedules, and surcharge
387	schedules, and changes thereto, shall be filed with the office
388	under one of the following procedures:
389	1.  If the filing is made at least 90 days before the
390	proposed effective date. and The filing may is not be
391	implemented during the office's review of the filing and any
392	proceeding and judicial review., then Such filing is shall be
393	considered a "file and use" filing. In such case, The office
394	shall finalize its review by issuance of a notice of intent to
395	approve or a notice of intent to disapprove within 90 days after
396	receipt of the filing. The notice of intent to approve and the
397	notice of intent to disapprove constitute agency action for
398	purposes of the Administrative Procedure Act. Requests for
399	supporting information, requests for mathematical or mechanical
400	corrections, or notification to the insurer by the office of its
401	preliminary findings shall not toll the 90-day period during any
402	such proceedings and subsequent judicial review. The rate shall
403	be deemed approved if the office does not issue a notice of
404	intent to approve or a notice of intent to disapprove within 90
405	days after receipt of the filing.
406	2.  If the filing is not made in accordance with the
407	provisions of subparagraph 1., such filing shall be made as soon
408	as practicable, but no later than 30 days after the effective
409	date, and shall be considered a "use and file" filing. An
410	insurer making a "use and file" filing is potentially subject to
411	an order by the office to return to policyholders portions of
412	rates found to be excessive, as provided in paragraph (h).
413	(b)  Upon receiving a rate filing, the office shall review
414	the rate filing to determine if a rate is excessive, inadequate,
415	or unfairly discriminatory. In making that determination, the
416	office shall, in accordance with generally accepted and
417	reasonable actuarial techniques, consider the following factors:
418	1.  Past and prospective loss experience within and without
419	this state.
420	2.  Past and prospective expenses.
421	3.  The degree of competition among insurers for the risk
422	insured.
423	4.  Investment income reasonably expected by the insurer,
424	consistent with the insurer's investment practices, from
425	investable premiums anticipated in the filing, plus any other
426	expected income from currently invested assets representing the
427	amount expected on unearned premium reserves and loss reserves.
428	The commission may adopt rules utilizing reasonable techniques
429	of actuarial science and economics to specify the manner in
430	which insurers shall calculate investment income attributable to
431	such classes of insurance written in this state and the manner
432	in which such investment income shall be used in the calculation
433	of insurance rates. Such manner shall contemplate allowances for
434	an underwriting profit factor and full consideration of
435	investment income which produce a reasonable rate of return;
436	however, investment income from invested surplus shall not be
437	considered.
438	5.  The reasonableness of the judgment reflected in the
439	filing.
440	6.  Dividends, savings, or unabsorbed premium deposits
441	allowed or returned to Florida policyholders, members, or
442	subscribers.
443	7.  The adequacy of loss reserves.
444	8.  The cost of reinsurance.
445	9.  Trend factors, including trends in actual losses per
446	insured unit for the insurer making the filing.
447	10.  Conflagration and catastrophe hazards, if applicable.
448	11.  A reasonable margin for underwriting profit and
449	contingencies.
450	12.  The cost of medical services, if applicable.
451	13.  Other relevant factors which impact upon the frequency
452	or severity of claims or upon expenses.
453	(c)  In the case of fire insurance rates, consideration
454	shall be given to the availability of water supplies and the
455	experience of the fire insurance business during a period of not
456	less than the most recent 5-year period for which such
457	experience is available.
458	(d)  If conflagration or catastrophe hazards are given
459	consideration by an insurer in its rates or rating plan,
460	including surcharges and discounts, the insurer shall establish
461	a reserve for that portion of the premium allocated to such
462	hazard and shall maintain the premium in a catastrophe reserve.
463	Any removal of such premiums from the reserve for purposes other
464	than paying claims associated with a catastrophe or purchasing
465	reinsurance for catastrophes shall be subject to approval of the
466	office. Any ceding commission received by an insurer purchasing
467	reinsurance for catastrophes shall be placed in the catastrophe
468	reserve.
469	(e)  After consideration of the rate factors provided in
470	paragraphs (b), (c), and (d), a rate may be found by the office
471	to be excessive, inadequate, or unfairly discriminatory based
472	upon the following standards:
473	1.  Rates shall be deemed excessive if they are likely to
474	produce a profit from Florida business that is unreasonably high
475	in relation to the risk involved in the class of business or if
476	expenses are unreasonably high in relation to services rendered.
477	2.  Rates shall be deemed excessive if, among other things,
478	the rate structure established by a stock insurance company
479	provides for replenishment of surpluses from premiums, when the
480	replenishment is attributable to investment losses.
481	3.  Rates shall be deemed inadequate if they are clearly
482	insufficient, together with the investment income attributable
483	to them, to sustain projected losses and expenses in the class
484	of business to which they apply.
485	4.  A rating plan, including discounts, credits, or
486	surcharges, shall be deemed unfairly discriminatory if it fails
487	to clearly and equitably reflect consideration of the
488	policyholder's participation in a risk management program
489	adopted pursuant to s. 627.0625.
490	5.  A rate shall be deemed inadequate as to the premium
491	charged to a risk or group of risks if discounts or credits are
492	allowed which exceed a reasonable reflection of expense savings
493	and reasonably expected loss experience from the risk or group
494	of risks.
495	6.  A rate shall be deemed unfairly discriminatory as to a
496	risk or group of risks if the application of premium discounts,
497	credits, or surcharges among such risks does not bear a
498	reasonable relationship to the expected loss and expense
499	experience among the various risks.
500	(f)  In reviewing a rate filing, the office may require the
501	insurer to provide at the insurer's expense all information
502	necessary to evaluate the condition of the company and the
503	reasonableness of the filing according to the criteria
504	enumerated in this section.
505	(g)  The office may at any time review a rate, rating
506	schedule, rating manual, or rate change; the pertinent records
507	of the insurer; and market conditions. If the office finds on a
508	preliminary basis that a rate may be excessive, inadequate, or
509	unfairly discriminatory, the office shall initiate proceedings
510	to disapprove the rate and shall so notify the insurer. However,
511	the office may not disapprove as excessive any rate for which it
512	has given final approval or which has been deemed approved for a
513	period of 1 year after the effective date of the filing unless
514	the office finds that a material misrepresentation or material
515	error was made by the insurer or was contained in the filing.
516	Upon being so notified, the insurer or rating organization
517	shall, within 60 days, file with the office all information
518	which, in the belief of the insurer or organization, proves the
519	reasonableness, adequacy, and fairness of the rate or rate
520	change. The office shall issue a notice of intent to approve or
521	a notice of intent to disapprove pursuant to the procedures of
522	paragraph (a) within 90 days after receipt of the insurer's
523	initial response. In such instances and in any administrative
524	proceeding relating to the legality of the rate, the insurer or
525	rating organization shall carry the burden of proof by a
526	preponderance of the evidence to show that the rate is not
527	excessive, inadequate, or unfairly discriminatory. After the
528	office notifies an insurer that a rate may be excessive,
529	inadequate, or unfairly discriminatory, unless the office
530	withdraws the notification, the insurer shall not alter the rate
531	except to conform with the office's notice until the earlier of
532	120 days after the date the notification was provided or 180
533	days after the date of the implementation of the rate. The
534	office may, subject to chapter 120, disapprove without the 60-
535	day notification any rate increase filed by an insurer within
536	the prohibited time period or during the time that the legality
537	of the increased rate is being contested.
538	(h)  If In the event the office finds that a rate or rate
539	change is excessive, inadequate, or unfairly discriminatory, the
540	office shall issue an order of disapproval specifying that a new
541	rate or rate schedule which responds to the findings of the
542	office be filed by the insurer. The office shall further order,
543	for any "use and file" filing made in accordance with
544	subparagraph (a)2., that premiums charged each policyholder
545	constituting the portion of the rate above that which was
546	actuarially justified be returned to such policyholder in the
547	form of a credit or refund. If the office finds that an
548	insurer's rate or rate change is inadequate, the new rate or
549	rate schedule filed with the office in response to such a
550	finding shall be applicable only to new or renewal business of
551	the insurer written on or after the effective date of the
552	responsive filing.
553	(i)  Except as otherwise specifically provided in this
554	chapter, the office shall not prohibit any insurer, including
555	any residual market plan or joint underwriting association, from
556	paying acquisition costs based on the full amount of premium, as
557	defined in s. 627.403, applicable to any policy, or prohibit any
558	such insurer from including the full amount of acquisition costs
559	in a rate filing.
560
561	The provisions of This subsection does shall not apply to
562	workers' compensation and employer's liability insurance and to
563	motor vehicle insurance.
564	Section 12.  Effective upon this act becoming a law,
565	subsections (6), (7), and (8) of section 627.062, Florida
566	Statutes, are amended to read:
567	627.062  Rate standards.--
568	(6)(a)  After any action with respect to a rate filing that
569	constitutes agency action for purposes of the Administrative
570	Procedure Act, except for a rate filing for medical malpractice,
571	an insurer may, in lieu of demanding a hearing under s. 120.57,
572	require arbitration of the rate filing. Arbitration shall be
573	conducted by a board of arbitrators consisting of an arbitrator
574	selected by the office, an arbitrator selected by the insurer,
575	and an arbitrator selected jointly by the other two arbitrators.
576	Each arbitrator must be certified by the American Arbitration
577	Association. A decision is valid only upon the affirmative vote
578	of at least two of the arbitrators. No arbitrator may be an
579	employee of any insurance regulator or regulatory body or of any
580	insurer, regardless of whether or not the employing insurer does
581	business in this state. The office and the insurer must treat
582	the decision of the arbitrators as the final approval of a rate
583	filing. Costs of arbitration shall be paid by the insurer.
584	(b)  Arbitration under this subsection shall be conducted
585	pursuant to the procedures specified in ss. 682.06-682.10.
586	Either party may apply to the circuit court to vacate or modify
587	the decision pursuant to s. 682.13 or s. 682.14. The commission
588	shall adopt rules for arbitration under this subsection, which
589	rules may not be inconsistent with the arbitration rules of the
590	American Arbitration Association as of January 1, 1996.
591	(c)  Upon initiation of the arbitration process, the
592	insurer waives all rights to challenge the action of the office
593	under the Administrative Procedure Act or any other provision of
594	law; however, such rights are restored to the insurer if the
595	arbitrators fail to render a decision within 90 days after
596	initiation of the arbitration process.
597	(6)(7)(a)  The provisions of this subsection apply only
598	with respect to rates for medical malpractice insurance and
599	shall control to the extent of any conflict with other
600	provisions of this section.
601	(b)  Any portion of a judgment entered or settlement paid
602	as a result of a statutory or common-law bad faith action and
603	any portion of a judgment entered which awards punitive damages
604	against an insurer may not be included in the insurer's rate
605	base, and shall not be used to justify a rate or rate change.
606	Any common-law bad faith action identified as such, any portion
607	of a settlement entered as a result of a statutory or common-law
608	action, or any portion of a settlement wherein an insurer agrees
609	to pay specific punitive damages may not be used to justify a
610	rate or rate change. The portion of the taxable costs and
611	attorney's fees which is identified as being related to the bad
612	faith and punitive damages in these judgments and settlements
613	may not be included in the insurer's rate base and may not be
614	utilized to justify a rate or rate change.
615	(c)  Upon reviewing a rate filing and determining whether
616	the rate is excessive, inadequate, or unfairly discriminatory,
617	the office shall consider, in accordance with generally accepted
618	and reasonable actuarial techniques, past and present
619	prospective loss experience, either using loss experience solely
620	for this state or giving greater credibility to this state's
621	loss data after applying actuarially sound methods of assigning
622	credibility to such data.
623	(d)  Rates shall be deemed excessive if, among other
624	standards established by this section, the rate structure
625	provides for replenishment of reserves or surpluses from
626	premiums when the replenishment is attributable to investment
627	losses.
628	(e)  The insurer must apply a discount or surcharge based
629	on the health care provider's loss experience or shall establish
630	an alternative method giving due consideration to the provider's
631	loss experience. The insurer must include in the filing a copy
632	of the surcharge or discount schedule or a description of the
633	alternative method used, and must provide a copy of such
634	schedule or description, as approved by the office, to
635	policyholders at the time of renewal and to prospective
636	policyholders at the time of application for coverage.
637	(f)  Each medical malpractice insurer must make a rate
638	filing under this section, sworn to by at least two executive
639	officers of the insurer, at least once each calendar year.
640	(7)(8)(a)1.  No later than 60 days after the effective date
641	of medical malpractice legislation enacted during the 2003
642	Special Session D of the Florida Legislature, the office shall
643	calculate a presumed factor that reflects the impact that the
644	changes contained in such legislation will have on rates for
645	medical malpractice insurance and shall issue a notice informing
646	all insurers writing medical malpractice coverage of such
647	presumed factor. In determining the presumed factor, the office
648	shall use generally accepted actuarial techniques and standards
649	provided in this section in determining the expected impact on
650	losses, expenses, and investment income of the insurer. To the
651	extent that the operation of a provision of medical malpractice
652	legislation enacted during the 2003 Special Session D of the
653	Florida Legislature is stayed pending a constitutional
654	challenge, the impact of that provision shall not be included in
655	the calculation of a presumed factor under this subparagraph.
656	2.  No later than 60 days after the office issues its
657	notice of the presumed rate change factor under subparagraph 1.,
658	each insurer writing medical malpractice coverage in this state
659	shall submit to the office a rate filing for medical malpractice
660	insurance, which will take effect no later than January 1, 2004,
661	and apply retroactively to policies issued or renewed on or
662	after the effective date of medical malpractice legislation
663	enacted during the 2003 Special Session D of the Florida
664	Legislature. Except as authorized under paragraph (b), the
665	filing shall reflect an overall rate reduction at least as great
666	as the presumed factor determined under subparagraph 1. With
667	respect to policies issued on or after the effective date of
668	such legislation and prior to the effective date of the rate
669	filing required by this subsection, the office shall order the
670	insurer to make a refund of the amount that was charged in
671	excess of the rate that is approved.
672	(b)  Any insurer or rating organization that contends that
673	the rate provided for in paragraph (a) is excessive, inadequate,
674	or unfairly discriminatory shall separately state in its filing
675	the rate it contends is appropriate and shall state with
676	specificity the factors or data that it contends should be
677	considered in order to produce such appropriate rate. The
678	insurer or rating organization shall be permitted to use all of
679	the generally accepted actuarial techniques provided in this
680	section in making any filing pursuant to this subsection. The
681	office shall review each such exception and approve or
682	disapprove it prior to use. It shall be the insurer's burden to
683	actuarially justify any deviations from the rates required to be
684	filed under paragraph (a). The insurer making a filing under
685	this paragraph shall include in the filing the expected impact
686	of medical malpractice legislation enacted during the 2003
687	Special Session D of the Florida Legislature on losses,
688	expenses, and rates.
689	(c)  If any provision of medical malpractice legislation
690	enacted during the 2003 Special Session D of the Florida
691	Legislature is held invalid by a court of competent
692	jurisdiction, the office shall permit an adjustment of all
693	medical malpractice rates filed under this section to reflect
694	the impact of such holding on such rates so as to ensure that
695	the rates are not excessive, inadequate, or unfairly
696	discriminatory.
697	(d)  Rates approved on or before July 1, 2003, for medical
698	malpractice insurance shall remain in effect until the effective
699	date of a new rate filing approved under this subsection.
700	(e)  The calculation and notice by the office of the
701	presumed factor pursuant to paragraph (a) is not an order or
702	rule that is subject to chapter 120. If the office enters into a
703	contract with an independent consultant to assist the office in
704	calculating the presumed factor, such contract shall not be
705	subject to the competitive solicitation requirements of s.
706	287.057.
707	Section 13.  Subsection (11) is added to section 627.0629,
708	Florida Statutes, to read:
709	627.0629  Residential property insurance; rate filings;
710	underwriting rules.--
711	(11)  The underwriting rules for homeowners' insurance not
712	contained in rating manuals shall be filed with the office. All
713	underwriting rules for homeowners' insurance must be approved by
714	the office and be reasonable and comply with applicable
715	provisions of law. The filing and form-approval provisions under
716	s. 627.410 apply to the filing and approval of underwriting
717	rules for homeowners' insurance.
718	Section 14.  Subsections (1), (11), and (13) of section
719	627.0651, Florida Statutes, are amended to read:
720	627.0651  Making and use of rates for motor vehicle
721	insurance.--
722	(1)  Insurers shall establish and use rates, rating
723	schedules, or rating manuals to allow the insurer a reasonable
724	rate of return on motor vehicle insurance written in this state.
725	A copy of rates, rating schedules, and rating manuals, and
726	changes therein, shall be filed with the office under one of the
727	following procedures:
728	(a)  If the filing is made at least 60 days before the
729	proposed effective date. and The filing may is not be
730	implemented during the office's review of the filing and any
731	proceeding and judicial review., Such filing is shall be
732	considered a "file and use" filing. In such case, the office
733	shall initiate proceedings to disapprove the rate and so notify
734	the insurer or shall finalize its review within 60 days after
735	receipt of the filing. Notification to the insurer by the office
736	of its preliminary findings shall toll the 60-day period during
737	any such proceedings and subsequent judicial review. The rate
738	shall be deemed approved if the office does not issue notice to
739	the insurer of its preliminary findings within 60 days after the
740	filing.
741	(b)  If the filing is not made in accordance with the
742	provisions of paragraph (a), such filing shall be made as soon
743	as practicable, but no later than 30 days after the effective
744	date, and shall be considered a "use and file" filing. An
745	insurer making a "use and file" filing is potentially subject to
746	an order by the office to return to policyholders portions of
747	rates found to be excessive, as provided in subsection (11).
748	(11)  If In the event the office finds that a rate or rate
749	change is excessive, inadequate, or unfairly discriminatory, the
750	office shall issue an order of disapproval specifying that a new
751	rate or rate schedule which responds to the findings of the
752	office be filed by the insurer. The office shall further order
753	for any "use and file" filing made in accordance with paragraph
754	(1)(b), that premiums charged each policyholder constituting the
755	portion of the rate above that which was actuarially justified
756	be returned to such policyholder in the form of a credit or
757	refund. If the office finds that an insurer's rate or rate
758	change is inadequate, the new rate or rate schedule filed with
759	the office in response to such a finding shall be applicable
760	only to new or renewal business of the insurer written on or
761	after the effective date of the responsive filing.
762	(13)(a)  Underwriting rules not contained in rating manuals
763	shall be filed for private passenger automobile insurance and
764	homeowners' insurance.
765	(b)  The submission of rates, rating schedules, and rating
766	manuals to the office by a licensed rating organization of which
767	an insurer is a member or subscriber will be sufficient
768	compliance with this subsection for any insurer maintaining
769	membership or subscribership in such organization, to the extent
770	that the insurer uses the rates, rating schedules, and rating
771	manuals of such organization. All such information shall be
772	available for public inspection, upon receipt by the office,
773	during usual business hours.
774	Section 15.  Paragraph (e) of subsection (5) of section
775	627.311, Florida Statutes, is amended to read:
776	627.311  Joint underwriters and joint reinsurers; public
777	records and public meetings exemptions.--
778	(5)
779	(e)  The plan shall establish and use its rates and rating
780	plans, and the plan may establish and use changes in rating
781	plans at any time, but no more frequently than two times per any
782	rating class for any calendar year. By December 1, 1993, and
783	December 1 of each year thereafter, except as provided in
784	subparagraph (c)22., the board shall establish and use
785	actuarially sound rates for use by the plan to assure that the
786	plan is self-funding while those rates are in effect. Such rates
787	and rating plans must be filed with the office as provided in s.
788	627.062(2)(a) within 30 calendar days after their effective
789	dates, and shall be considered a "use and file" filing. Any
790	disapproval by the office must have an effective date that is at
791	least 60 days from the date of disapproval of the rates and
792	rating plan and must have prospective effect only. The plan may
793	not be subject to any order by the office to return to
794	policyholders any portion of the rates disapproved by the
795	office. The office may not disapprove any rates or rating plans
796	unless it demonstrates that such rates and rating plans are
797	excessive, inadequate, or unfairly discriminatory.
798	Section 16.  Effective upon this act becoming a law,
799	paragraph (b) of subsection (2) of section 627.351, Florida
800	Statutes, is amended to read:
801	627.351  Insurance risk apportionment plans.--
802	(2)  WINDSTORM INSURANCE RISK APPORTIONMENT.--
803	(b)  The department shall require all insurers holding a
804	certificate of authority to transact property insurance on a
805	direct basis in this state, other than joint underwriting
806	associations and other entities formed pursuant to this section,
807	to provide windstorm coverage to applicants from areas
808	determined to be eligible pursuant to paragraph (c) who in good
809	faith are entitled to, but are unable to procure, such coverage
810	through ordinary means; or it shall adopt a reasonable plan or
811	plans for the equitable apportionment or sharing among such
812	insurers of windstorm coverage, which may include formation of
813	an association for this purpose. As used in this subsection, the
814	term "property insurance" means insurance on real or personal
815	property, as defined in s. 624.604, including insurance for
816	fire, industrial fire, allied lines, farmowners multiperil,
817	homeowners' multiperil, commercial multiperil, and mobile homes,
818	and including liability coverages on all such insurance, but
819	excluding inland marine as defined in s. 624.607(3) and
820	excluding vehicle insurance as defined in s. 624.605(1)(a) other
821	than insurance on mobile homes used as permanent dwellings. The
822	department shall adopt rules that provide a formula for the
823	recovery and repayment of any deferred assessments.
824	1.  For the purpose of this section, properties eligible
825	for such windstorm coverage are defined as dwellings, buildings,
826	and other structures, including mobile homes which are used as
827	dwellings and which are tied down in compliance with mobile home
828	tie-down requirements prescribed by the Department of Highway
829	Safety and Motor Vehicles pursuant to s. 320.8325, and the
830	contents of all such properties. An applicant or policyholder is
831	eligible for coverage only if an offer of coverage cannot be
832	obtained by or for the applicant or policyholder from an
833	admitted insurer at approved rates.
834	2.a.(I)  All insurers required to be members of such
835	association shall participate in its writings, expenses, and
836	losses. Surplus of the association shall be retained for the
837	payment of claims and shall not be distributed to the member
838	insurers. Such participation by member insurers shall be in the
839	proportion that the net direct premiums of each member insurer
840	written for property insurance in this state during the
841	preceding calendar year bear to the aggregate net direct
842	premiums for property insurance of all member insurers, as
843	reduced by any credits for voluntary writings, in this state
844	during the preceding calendar year. For the purposes of this
845	subsection, the term "net direct premiums" means direct written
846	premiums for property insurance, reduced by premium for
847	liability coverage and for the following if included in allied
848	lines: rain and hail on growing crops; livestock; association
849	direct premiums booked; National Flood Insurance Program direct
850	premiums; and similar deductions specifically authorized by the
851	plan of operation and approved by the department. A member's
852	participation shall begin on the first day of the calendar year
853	following the year in which it is issued a certificate of
854	authority to transact property insurance in the state and shall
855	terminate 1 year after the end of the calendar year during which
856	it no longer holds a certificate of authority to transact
857	property insurance in the state. The commissioner, after review
858	of annual statements, other reports, and any other statistics
859	that the commissioner deems necessary, shall certify to the
860	association the aggregate direct premiums written for property
861	insurance in this state by all member insurers.
862	(II)  Effective July 1, 2002, the association shall operate
863	subject to the supervision and approval of a board of governors
864	who are the same individuals that have been appointed by the
865	Treasurer to serve on the board of governors of the Citizens
866	Property Insurance Corporation.
867	(III)  The plan of operation shall provide a formula
868	whereby a company voluntarily providing windstorm coverage in
869	affected areas will be relieved wholly or partially from
870	apportionment of a regular assessment pursuant to sub-sub-
871	subparagraph d.(I) or sub-sub-subparagraph d.(II).
872	(IV)  A company which is a member of a group of companies
873	under common management may elect to have its credits applied on
874	a group basis, and any company or group may elect to have its
875	credits applied to any other company or group.
876	(V)  There shall be no credits or relief from apportionment
877	to a company for emergency assessments collected from its
878	policyholders under sub-sub-subparagraph d.(III).
879	(VI)  The plan of operation may also provide for the award
880	of credits, for a period not to exceed 3 years, from a regular
881	assessment pursuant to sub-sub-subparagraph d.(I) or sub-sub-
882	subparagraph d.(II) as an incentive for taking policies out of
883	the Residential Property and Casualty Joint Underwriting
884	Association. In order to qualify for the exemption under this
885	sub-sub-subparagraph, the take-out plan must provide that at
886	least 40 percent of the policies removed from the Residential
887	Property and Casualty Joint Underwriting Association cover risks
888	located in Dade, Broward, and Palm Beach Counties or at least 30
889	percent of the policies so removed cover risks located in Dade,
890	Broward, and Palm Beach Counties and an additional 50 percent of
891	the policies so removed cover risks located in other coastal
892	counties, and must also provide that no more than 15 percent of
893	the policies so removed may exclude windstorm coverage. With the
894	approval of the department, the association may waive these
895	geographic criteria for a take-out plan that removes at least
896	the lesser of 100,000 Residential Property and Casualty Joint
897	Underwriting Association policies or 15 percent of the total
898	number of Residential Property and Casualty Joint Underwriting
899	Association policies, provided the governing board of the
900	Residential Property and Casualty Joint Underwriting Association
901	certifies that the take-out plan will materially reduce the
902	Residential Property and Casualty Joint Underwriting
903	Association's 100-year probable maximum loss from hurricanes.
904	With the approval of the department, the board may extend such
905	credits for an additional year if the insurer guarantees an
906	additional year of renewability for all policies removed from
907	the Residential Property and Casualty Joint Underwriting
908	Association, or for 2 additional years if the insurer guarantees
909	2 additional years of renewability for all policies removed from
910	the Residential Property and Casualty Joint Underwriting
911	Association.
912	b.  Assessments to pay deficits in the association under
913	this subparagraph shall be included as an appropriate factor in
914	the making of rates as provided in s. 627.3512.
915	c.  The Legislature finds that the potential for unlimited
916	deficit assessments under this subparagraph may induce insurers
917	to attempt to reduce their writings in the voluntary market, and
918	that such actions would worsen the availability problems that
919	the association was created to remedy. It is the intent of the
920	Legislature that insurers remain fully responsible for paying
921	regular assessments and collecting emergency assessments for any
922	deficits of the association; however, it is also the intent of
923	the Legislature to provide a means by which assessment
924	liabilities may be amortized over a period of years.
925	d.(I)  When the deficit incurred in a particular calendar
926	year is 10 percent or less of the aggregate statewide direct
927	written premium for property insurance for the prior calendar
928	year for all member insurers, the association shall levy an
929	assessment on member insurers in an amount equal to the deficit.
930	(II)  When the deficit incurred in a particular calendar
931	year exceeds 10 percent of the aggregate statewide direct
932	written premium for property insurance for the prior calendar
933	year for all member insurers, the association shall levy an
934	assessment on member insurers in an amount equal to the greater
935	of 10 percent of the deficit or 10 percent of the aggregate
936	statewide direct written premium for property insurance for the
937	prior calendar year for member insurers. Any remaining deficit
938	shall be recovered through emergency assessments under sub-sub-
939	subparagraph (III).
940	(III)  Upon a determination by the board of directors that
941	a deficit exceeds the amount that will be recovered through
942	regular assessments on member insurers, pursuant to sub-sub-
943	subparagraph (I) or sub-sub-subparagraph (II), the board shall
944	levy, after verification by the department, emergency
945	assessments to be collected by member insurers and by
946	underwriting associations created pursuant to this section which
947	write property insurance, upon issuance or renewal of property
948	insurance policies other than National Flood Insurance policies
949	in the year or years following levy of the regular assessments.
950	The amount of the emergency assessment collected in a particular
951	year shall be a uniform percentage of that year's direct written
952	premium for property insurance for all member insurers and
953	underwriting associations, excluding National Flood Insurance
954	policy premiums, as annually determined by the board and
955	verified by the department. The department shall verify the
956	arithmetic calculations involved in the board's determination
957	within 30 days after receipt of the information on which the
958	determination was based. Notwithstanding any other provision of
959	law, each member insurer and each underwriting association
960	created pursuant to this section shall collect emergency
961	assessments from its policyholders without such obligation being
962	affected by any credit, limitation, exemption, or deferment. The
963	emergency assessments so collected shall be transferred directly
964	to the association on a periodic basis as determined by the
965	association. The aggregate amount of emergency assessments
966	levied under this sub-sub-subparagraph in any calendar year may
967	not exceed the greater of 10 percent of the amount needed to
968	cover the original deficit, plus interest, fees, commissions,
969	required reserves, and other costs associated with financing of
970	the original deficit, or 10 percent of the aggregate statewide
971	direct written premium for property insurance written by member
972	insurers and underwriting associations for the prior year, plus
973	interest, fees, commissions, required reserves, and other costs
974	associated with financing the original deficit. The board may
975	pledge the proceeds of the emergency assessments under this sub-
976	sub-subparagraph as the source of revenue for bonds, to retire
977	any other debt incurred as a result of the deficit or events
978	giving rise to the deficit, or in any other way that the board
979	determines will efficiently recover the deficit. The emergency
980	assessments under this sub-sub-subparagraph shall continue as
981	long as any bonds issued or other indebtedness incurred with
982	respect to a deficit for which the assessment was imposed remain
983	outstanding, unless adequate provision has been made for the
984	payment of such bonds or other indebtedness pursuant to the
985	document governing such bonds or other indebtedness. Emergency
986	assessments collected under this sub-sub-subparagraph are not
987	part of an insurer's rates, are not premium, and are not subject
988	to premium tax, fees, or commissions; however, failure to pay
989	the emergency assessment shall be treated as failure to pay
990	premium.
991	(IV)  Each member insurer's share of the total regular
992	assessments under sub-sub-subparagraph (I) or sub-sub-
993	subparagraph (II) shall be in the proportion that the insurer's
994	net direct premium for property insurance in this state, for the
995	year preceding the assessment bears to the aggregate statewide
996	net direct premium for property insurance of all member
997	insurers, as reduced by any credits for voluntary writings for
998	that year.
999	(V)  If regular deficit assessments are made under sub-sub-
1000	subparagraph (I) or sub-sub-subparagraph (II), or by the
1001	Residential Property and Casualty Joint Underwriting Association
1002	under sub-subparagraph (6)(b)3.a. or sub-subparagraph
1003	(6)(b)3.b., the association shall levy upon the association's
1004	policyholders, as part of its next rate filing, or by a separate
1005	rate filing solely for this purpose, a market equalization
1006	surcharge in a percentage equal to the total amount of such
1007	regular assessments divided by the aggregate statewide direct
1008	written premium for property insurance for member insurers for
1009	the prior calendar year. Market equalization surcharges under
1010	this sub-sub-subparagraph are not considered premium and are not
1011	subject to commissions, fees, or premium taxes; however, failure
1012	to pay a market equalization surcharge shall be treated as
1013	failure to pay premium.
1014	e.  The governing body of any unit of local government, any
1015	residents of which are insured under the plan, may issue bonds
1016	as defined in s. 125.013 or s. 166.101 to fund an assistance
1017	program, in conjunction with the association, for the purpose of
1018	defraying deficits of the association. In order to avoid
1019	needless and indiscriminate proliferation, duplication, and
1020	fragmentation of such assistance programs, any unit of local
1021	government, any residents of which are insured by the
1022	association, may provide for the payment of losses, regardless
1023	of whether or not the losses occurred within or outside of the
1024	territorial jurisdiction of the local government. Revenue bonds
1025	may not be issued until validated pursuant to chapter 75, unless
1026	a state of emergency is declared by executive order or
1027	proclamation of the Governor pursuant to s. 252.36 making such
1028	findings as are necessary to determine that it is in the best
1029	interests of, and necessary for, the protection of the public
1030	health, safety, and general welfare of residents of this state
1031	and the protection and preservation of the economic stability of
1032	insurers operating in this state, and declaring it an essential
1033	public purpose to permit certain municipalities or counties to
1034	issue bonds as will provide relief to claimants and
1035	policyholders of the association and insurers responsible for
1036	apportionment of plan losses. Any such unit of local government
1037	may enter into such contracts with the association and with any
1038	other entity created pursuant to this subsection as are
1039	necessary to carry out this paragraph. Any bonds issued under
1040	this sub-subparagraph shall be payable from and secured by
1041	moneys received by the association from assessments under this
1042	subparagraph, and assigned and pledged to or on behalf of the
1043	unit of local government for the benefit of the holders of such
1044	bonds. The funds, credit, property, and taxing power of the
1045	state or of the unit of local government shall not be pledged
1046	for the payment of such bonds. If any of the bonds remain unsold
1047	60 days after issuance, the department shall require all
1048	insurers subject to assessment to purchase the bonds, which
1049	shall be treated as admitted assets; each insurer shall be
1050	required to purchase that percentage of the unsold portion of
1051	the bond issue that equals the insurer's relative share of
1052	assessment liability under this subsection. An insurer shall not
1053	be required to purchase the bonds to the extent that the
1054	department determines that the purchase would endanger or impair
1055	the solvency of the insurer. The authority granted by this sub-
1056	subparagraph is additional to any bonding authority granted by
1057	subparagraph 6.
1058	3.  The plan shall also provide that any member with a
1059	surplus as to policyholders of $20 million or less writing 25
1060	percent or more of its total countrywide property insurance
1061	premiums in this state may petition the department, within the
1062	first 90 days of each calendar year, to qualify as a limited
1063	apportionment company. The apportionment of such a member
1064	company in any calendar year for which it is qualified shall not
1065	exceed its gross participation, which shall not be affected by
1066	the formula for voluntary writings. In no event shall a limited
1067	apportionment company be required to participate in any
1068	apportionment of losses pursuant to sub-sub-subparagraph 2.d.(I)
1069	or sub-sub-subparagraph 2.d.(II) in the aggregate which exceeds
1070	$50 million after payment of available plan funds in any
1071	calendar year. However, a limited apportionment company shall
1072	collect from its policyholders any emergency assessment imposed
1073	under sub-sub-subparagraph 2.d.(III). The plan shall provide
1074	that, if the department determines that any regular assessment
1075	will result in an impairment of the surplus of a limited
1076	apportionment company, the department may direct that all or
1077	part of such assessment be deferred. However, there shall be no
1078	limitation or deferment of an emergency assessment to be
1079	collected from policyholders under sub-sub-subparagraph
1080	2.d.(III).
1081	4.  The plan shall provide for the deferment, in whole or
1082	in part, of a regular assessment of a member insurer under sub-
1083	sub-subparagraph 2.d.(I) or sub-sub-subparagraph 2.d.(II), but
1084	not for an emergency assessment collected from policyholders
1085	under sub-sub-subparagraph 2.d.(III), if, in the opinion of the
1086	commissioner, payment of such regular assessment would endanger
1087	or impair the solvency of the member insurer. In the event a
1088	regular assessment against a member insurer is deferred in whole
1089	or in part, the amount by which such assessment is deferred may
1090	be assessed against the other member insurers in a manner
1091	consistent with the basis for assessments set forth in sub-sub-
1092	subparagraph 2.d.(I) or sub-sub-subparagraph 2.d.(II).
1093	5.a.  The plan of operation may include deductibles and
1094	rules for classification of risks and rate modifications
1095	consistent with the objective of providing and maintaining funds
1096	sufficient to pay catastrophe losses.
1097	b.  The association may require arbitration of a rate
1098	filing under s. 627.062(6). It is the intent of the Legislature
1099	that the rates for coverage provided by the association be
1100	actuarially sound and not competitive with approved rates
1101	charged in the admitted voluntary market such that the
1102	association functions as a residual market mechanism to provide
1103	insurance only when the insurance cannot be procured in the
1104	voluntary market. The plan of operation shall provide a
1105	mechanism to assure that, beginning no later than January 1,
1106	1999, the rates charged by the association for each line of
1107	business are reflective of approved rates in the voluntary
1108	market for hurricane coverage for each line of business in the
1109	various areas eligible for association coverage.
1110	c.  The association shall provide for windstorm coverage on
1111	residential properties in limits up to $10 million for
1112	commercial lines residential risks and up to $1 million for
1113	personal lines residential risks. If coverage with the
1114	association is sought for a residential risk valued in excess of
1115	these limits, coverage shall be available to the risk up to the
1116	replacement cost or actual cash value of the property, at the
1117	option of the insured, if coverage for the risk cannot be
1118	located in the authorized market. The association must accept a
1119	commercial lines residential risk with limits above $10 million
1120	or a personal lines residential risk with limits above $1
1121	million if coverage is not available in the authorized market.
1122	The association may write coverage above the limits specified in
1123	this subparagraph with or without facultative or other
1124	reinsurance coverage, as the association determines appropriate.
1125	d.  The plan of operation must provide objective criteria
1126	and procedures, approved by the department, to be uniformly
1127	applied for all applicants in determining whether an individual
1128	risk is so hazardous as to be uninsurable. In making this
1129	determination and in establishing the criteria and procedures,
1130	the following shall be considered:
1131	(I)  Whether the likelihood of a loss for the individual
1132	risk is substantially higher than for other risks of the same
1133	class; and
1134	(II)  Whether the uncertainty associated with the
1135	individual risk is such that an appropriate premium cannot be
1136	determined.
1137
1138	The acceptance or rejection of a risk by the association
1139	pursuant to such criteria and procedures must be construed as
1140	the private placement of insurance, and the provisions of
1141	chapter 120 do not apply.
1142	e.  If the risk accepts an offer of coverage through the
1143	market assistance program or through a mechanism established by
1144	the association, either before the policy is issued by the
1145	association or during the first 30 days of coverage by the
1146	association, and the producing agent who submitted the
1147	application to the association is not currently appointed by the
1148	insurer, the insurer shall:
1149	(I)  Pay to the producing agent of record of the policy,
1150	for the first year, an amount that is the greater of the
1151	insurer's usual and customary commission for the type of policy
1152	written or a fee equal to the usual and customary commission of
1153	the association; or
1154	(II)  Offer to allow the producing agent of record of the
1155	policy to continue servicing the policy for a period of not less
1156	than 1 year and offer to pay the agent the greater of the
1157	insurer's or the association's usual and customary commission
1158	for the type of policy written.
1159
1160	If the producing agent is unwilling or unable to accept
1161	appointment, the new insurer shall pay the agent in accordance
1162	with sub-sub-subparagraph (I). Subject to the provisions of s.
1163	627.3517, the policies issued by the association must provide
1164	that if the association obtains an offer from an authorized
1165	insurer to cover the risk at its approved rates under either a
1166	standard policy including wind coverage or, if consistent with
1167	the insurer's underwriting rules as filed with the department, a
1168	basic policy including wind coverage, the risk is no longer
1169	eligible for coverage through the association. Upon termination
1170	of eligibility, the association shall provide written notice to
1171	the policyholder and agent of record stating that the
1172	association policy must be canceled as of 60 days after the date
1173	of the notice because of the offer of coverage from an
1174	authorized insurer. Other provisions of the insurance code
1175	relating to cancellation and notice of cancellation do not apply
1176	to actions under this sub-subparagraph.
1177	f.  When the association enters into a contractual
1178	agreement for a take-out plan, the producing agent of record of
1179	the association policy is entitled to retain any unearned
1180	commission on the policy, and the insurer shall:
1181	(I)  Pay to the producing agent of record of the
1182	association policy, for the first year, an amount that is the
1183	greater of the insurer's usual and customary commission for the
1184	type of policy written or a fee equal to the usual and customary
1185	commission of the association; or
1186	(II)  Offer to allow the producing agent of record of the
1187	association policy to continue servicing the policy for a period
1188	of not less than 1 year and offer to pay the agent the greater
1189	of the insurer's or the association's usual and customary
1190	commission for the type of policy written.
1191
1192	If the producing agent is unwilling or unable to accept
1193	appointment, the new insurer shall pay the agent in accordance
1194	with sub-sub-subparagraph (I).
1195	6.a.  The plan of operation may authorize the formation of
1196	a private nonprofit corporation, a private nonprofit
1197	unincorporated association, a partnership, a trust, a limited
1198	liability company, or a nonprofit mutual company which may be
1199	empowered, among other things, to borrow money by issuing bonds
1200	or by incurring other indebtedness and to accumulate reserves or
1201	funds to be used for the payment of insured catastrophe losses.
1202	The plan may authorize all actions necessary to facilitate the
1203	issuance of bonds, including the pledging of assessments or
1204	other revenues.
1205	b.  Any entity created under this subsection, or any entity
1206	formed for the purposes of this subsection, may sue and be sued,
1207	may borrow money; issue bonds, notes, or debt instruments;
1208	pledge or sell assessments, market equalization surcharges and
1209	other surcharges, rights, premiums, contractual rights,
1210	projected recoveries from the Florida Hurricane Catastrophe
1211	Fund, other reinsurance recoverables, and other assets as
1212	security for such bonds, notes, or debt instruments; enter into
1213	any contracts or agreements necessary or proper to accomplish
1214	such borrowings; and take other actions necessary to carry out
1215	the purposes of this subsection. The association may issue bonds
1216	or incur other indebtedness, or have bonds issued on its behalf
1217	by a unit of local government pursuant to subparagraph (6)(g)2.,
1218	in the absence of a hurricane or other weather-related event,
1219	upon a determination by the association subject to approval by
1220	the department that such action would enable it to efficiently
1221	meet the financial obligations of the association and that such
1222	financings are reasonably necessary to effectuate the
1223	requirements of this subsection. Any such entity may accumulate
1224	reserves and retain surpluses as of the end of any association
1225	year to provide for the payment of losses incurred by the
1226	association during that year or any future year. The association
1227	shall incorporate and continue the plan of operation and
1228	articles of agreement in effect on the effective date of chapter
1229	76-96, Laws of Florida, to the extent that it is not
1230	inconsistent with chapter 76-96, and as subsequently modified
1231	consistent with chapter 76-96. The board of directors and
1232	officers currently serving shall continue to serve until their
1233	successors are duly qualified as provided under the plan. The
1234	assets and obligations of the plan in effect immediately prior
1235	to the effective date of chapter 76-96 shall be construed to be
1236	the assets and obligations of the successor plan created herein.
1237	c.  In recognition of s. 10, Art. I of the State
1238	Constitution, prohibiting the impairment of obligations of
1239	contracts, it is the intent of the Legislature that no action be
1240	taken whose purpose is to impair any bond indenture or financing
1241	agreement or any revenue source committed by contract to such
1242	bond or other indebtedness issued or incurred by the association
1243	or any other entity created under this subsection.
1244	7.  On such coverage, an agent's remuneration shall be that
1245	amount of money payable to the agent by the terms of his or her
1246	contract with the company with which the business is placed.
1247	However, no commission will be paid on that portion of the
1248	premium which is in excess of the standard premium of that
1249	company.
1250	8.  Subject to approval by the department, the association
1251	may establish different eligibility requirements and operational
1252	procedures for any line or type of coverage for any specified
1253	eligible area or portion of an eligible area if the board
1254	determines that such changes to the eligibility requirements and
1255	operational procedures are justified due to the voluntary market
1256	being sufficiently stable and competitive in such area or for
1257	such line or type of coverage and that consumers who, in good
1258	faith, are unable to obtain insurance through the voluntary
1259	market through ordinary methods would continue to have access to
1260	coverage from the association. When coverage is sought in
1261	connection with a real property transfer, such requirements and
1262	procedures shall not provide for an effective date of coverage
1263	later than the date of the closing of the transfer as
1264	established by the transferor, the transferee, and, if
1265	applicable, the lender.
1266	9.  Notwithstanding any other provision of law:
1267	a.  The pledge or sale of, the lien upon, and the security
1268	interest in any rights, revenues, or other assets of the
1269	association created or purported to be created pursuant to any
1270	financing documents to secure any bonds or other indebtedness of
1271	the association shall be and remain valid and enforceable,
1272	notwithstanding the commencement of and during the continuation
1273	of, and after, any rehabilitation, insolvency, liquidation,
1274	bankruptcy, receivership, conservatorship, reorganization, or
1275	similar proceeding against the association under the laws of
1276	this state or any other applicable laws.
1277	b.  No such proceeding shall relieve the association of its
1278	obligation, or otherwise affect its ability to perform its
1279	obligation, to continue to collect, or levy and collect,
1280	assessments, market equalization or other surcharges, projected
1281	recoveries from the Florida Hurricane Catastrophe Fund,
1282	reinsurance recoverables, or any other rights, revenues, or
1283	other assets of the association pledged.
1284	c.  Each such pledge or sale of, lien upon, and security
1285	interest in, including the priority of such pledge, lien, or
1286	security interest, any such assessments, emergency assessments,
1287	market equalization or renewal surcharges, projected recoveries
1288	from the Florida Hurricane Catastrophe Fund, reinsurance
1289	recoverables, or other rights, revenues, or other assets which
1290	are collected, or levied and collected, after the commencement
1291	of and during the pendency of or after any such proceeding shall
1292	continue unaffected by such proceeding.
1293	d.  As used in this subsection, the term "financing
1294	documents" means any agreement, instrument, or other document
1295	now existing or hereafter created evidencing any bonds or other
1296	indebtedness of the association or pursuant to which any such
1297	bonds or other indebtedness has been or may be issued and
1298	pursuant to which any rights, revenues, or other assets of the
1299	association are pledged or sold to secure the repayment of such
1300	bonds or indebtedness, together with the payment of interest on
1301	such bonds or such indebtedness, or the payment of any other
1302	obligation of the association related to such bonds or
1303	indebtedness.
1304	e.  Any such pledge or sale of assessments, revenues,
1305	contract rights or other rights or assets of the association
1306	shall constitute a lien and security interest, or sale, as the
1307	case may be, that is immediately effective and attaches to such
1308	assessments, revenues, contract, or other rights or assets,
1309	whether or not imposed or collected at the time the pledge or
1310	sale is made. Any such pledge or sale is effective, valid,
1311	binding, and enforceable against the association or other entity
1312	making such pledge or sale, and valid and binding against and
1313	superior to any competing claims or obligations owed to any
1314	other person or entity, including policyholders in this state,
1315	asserting rights in any such assessments, revenues, contract, or
1316	other rights or assets to the extent set forth in and in
1317	accordance with the terms of the pledge or sale contained in the
1318	applicable financing documents, whether or not any such person
1319	or entity has notice of such pledge or sale and without the need
1320	for any physical delivery, recordation, filing, or other action.
1321	f.  There shall be no liability on the part of, and no
1322	cause of action of any nature shall arise against, any member
1323	insurer or its agents or employees, agents or employees of the
1324	association, members of the board of directors of the
1325	association, or the department or its representatives, for any
1326	action taken by them in the performance of their duties or
1327	responsibilities under this subsection. Such immunity does not
1328	apply to actions for breach of any contract or agreement
1329	pertaining to insurance, or any willful tort.
1330	Section 17.  Paragraph (a) of subsection (2) of section
1331	627.4025, Florida Statutes, is amended to read:
1332	627.4025  Residential coverage and hurricane coverage
1333	defined.--
1334	(2)  As used in policies providing residential coverage:
1335	(a)  "Hurricane coverage" is coverage for loss or damage
1336	caused by the peril of windstorm during a hurricane. The term
1337	includes ensuing damage to the interior of a building, or to
1338	property inside a building, caused by rain, snow, sleet, hail,
1339	sand, or dust if the direct force of the windstorm first damages
1340	the building, causing an opening through which rain, snow,
1341	sleet, hail, sand, or dust enters and causes damage. The term
1342	also includes coverage for damage to the interior of a building,
1343	or to property inside a building, which is caused by wind-driven
1344	water entering the building during a hurricane.
1345	Section 18.  Effective upon this act becoming a law,
1346	subsection (7) is added to section 627.4133, Florida Statutes,
1347	to read:
1348	627.4133  Notice of cancellation, nonrenewal, or renewal
1349	premium.--
1350	(7)  An insurer may not cancel or nonrenew a residential
1351	property insurance policy for any reason other than a fraudulent
1352	act by the policyholder with respect to that or any other
1353	policy, for a policyholder who has been continuously insured
1354	with that insurer or with an insurer within the same insurance
1355	group for 3 years or longer.
1356	Section 19.  Subsection (1) of section 627.4145, Florida
1357	Statutes, is amended to read:
1358	627.4145  Readable language in insurance policies.--
1359	(1)  Every policy shall be readable as required by this
1360	section. For the purposes of this section, the term "policy"
1361	means a policy form or endorsement. A policy is deemed readable
1362	if:
1363	(a)  The text achieves a minimum score of 50 45 on the
1364	Flesch reading ease test as computed in subsection (5) or an
1365	equivalent score on any other test comparable in result and
1366	approved by the office.;
1367	(b)  It uses layout and spacing which separate the
1368	paragraphs from each other and from the border of the paper.;
1369	(c)  It has section titles that are captioned in boldfaced
1370	type or that otherwise stand out significantly from the text.;
1371	(d)  It avoids the use of unnecessarily long, complicated,
1372	or obscure words, sentences, paragraphs, or constructions.;
1373	(e)  The style, arrangement, and overall appearance of the
1374	policy give no undue prominence to any portion of the text of
1375	the policy or to any endorsements or riders.; and
1376	(f)  It contains a table of contents or an index of the
1377	principal sections of the policy, if the policy has more than
1378	3,000 words or more than three pages.
1379	Section 20.  Section 627.41494, Florida Statutes, is
1380	created to read:
1381	627.41494  Consumer participation in rate review.--
1382	(1)  Upon the filing of a proposed rate change for
1383	residential property insurance by an insurer under s. 627.062,
1384	which filing would, pursuant to standards determined by the
1385	office, result in an average statewide increase of 10 percent or
1386	more as compared to the rates in effect at that time or the
1387	rates in effect 12 months prior to the proposed effective date,
1388	the insurer shall mail notice of such filing to each of its
1389	policyholders or members.
1390	(2)  The rate filing shall be available for public
1391	inspection. If any policyholder or member requests the office
1392	within 30 days after the mailing of such notification pursuant
1393	to subsection (1) to hold a hearing, the office shall hold a
1394	hearing within 30 days after such request. Any consumer advocacy
1395	group or the Public Counsel under chapter 11 may participate in
1396	such hearing, and the commission may adopt rules governing such
1397	participation.
1398	(3)  For purposes of this section, the term "consumer
1399	advocacy group" means an organization with a membership of at
1400	least 1,000 individuals, the purpose of which is to represent
1401	the best interests of the public in matters relating, but not
1402	limited, to insurance rate filings before the office. The
1403	consumer advocacy group may:
1404	(a)  Appear in any proceeding or action before the
1405	department or office or appear in any proceeding before the
1406	Division of Administrative Hearings relating to rate filings
1407	subject to subsection (1).
1408	(b)  Have access to and use of all files, records, and data
1409	of the office relating to such rate filings.
1410	(c)  Examine such rate and form filings submitted to the
1411	office.
1412	(d)  Recommend to the office any position deemed by the
1413	group to be in the best interest of the public in matters
1414	relating to such rate filings.
1415
1416	This subsection does not limit the rights of a consumer advocacy
1417	group to have access to records of the office as otherwise
1418	available pursuant to law.
1419	(4)  The office shall order the insurer to pay the
1420	reasonable costs of the consumer advocacy group if the office
1421	determines that the consumer advocacy group made a relevant and
1422	substantial contribution to the final order on the rate filing.
1423	In determining the reasonable costs the insurer shall pay the
1424	consumer advocacy group, the office shall consider, among other
1425	things, the time, labor, fees, and expenses incurred by the
1426	advocacy group.
1427	Section 21.  Effective upon this act becoming a law,
1428	subsection (3) of section 627.701, Florida Statutes, is amended
1429	to read:
1430	627.701  Liability of insureds; coinsurance; deductibles.--
1431	(3)(a)  A policy of residential property insurance shall
1432	include a deductible amount applicable to hurricane losses no
1433	lower than $500 and no higher than 5 2 percent of the policy
1434	dwelling limits with respect to personal lines residential
1435	risks, and no higher than 3 percent of the policy limits with
1436	respect to commercial lines residential risks; however, if a
1437	risk was covered on August 24, 1992, under a policy having a
1438	higher deductible than the deductibles allowed by this
1439	paragraph, a policy covering such risk may include a deductible
1440	no higher than the deductible in effect on August 24, 1992.
1441	Notwithstanding the other provisions of this paragraph, a
1442	personal lines residential policy covering a risk valued at
1443	$50,000 or less may include a deductible amount attributable to
1444	hurricane losses no lower than $250, and a personal lines
1445	residential policy covering a risk valued at $100,000 or more
1446	may include a deductible amount attributable to hurricane losses
1447	no higher than 10 percent of the policy limits unless subject to
1448	a higher deductible on August 24, 1992; however, no maximum
1449	deductible is required with respect to a personal lines
1450	residential policy covering a risk valued at more than $500,000.
1451	An insurer may require a higher deductible, provided such
1452	deductible is the same as or similar to a deductible program
1453	lawfully in effect on June 14, 1995. In addition to the
1454	deductible amounts authorized by this paragraph, an insurer may
1455	also offer policies with a copayment provision under which,
1456	after exhaustion of the deductible, the policyholder is
1457	responsible for 10 percent of the next $10,000 of insured
1458	hurricane losses.
1459	(b)1.  Except as otherwise provided in this paragraph,
1460	prior to issuing a personal lines residential property insurance
1461	policy on or after July January 1, 2006, or prior to the first
1462	renewal of a residential property insurance policy on or after
1463	July January 1, 2006, the insurer must offer alternative
1464	deductible amounts applicable to hurricane losses equal to $500,
1465	1 percent, 2 percent, 5 percent, and 10 percent of the policy
1466	dwelling limits, but it need not offer a deductible expressed as
1467	a percentage when that unless the specific percentage deductible
1468	is less than $500. The written notice of the offer shall specify
1469	the hurricane or wind deductible to be applied in the event that
1470	the applicant or policyholder fails to affirmatively choose a
1471	hurricane deductible. The insurer must provide such policyholder
1472	with notice of the availability of the deductible amounts
1473	specified in this paragraph in a form approved by the office in
1474	conjunction with each renewal of the policy. The failure to
1475	provide such notice constitutes a violation of this code but
1476	does not affect the coverage provided under the policy.
1477	2.  This paragraph does not apply with respect to a
1478	deductible program lawfully in effect on June 14, 1995, or to
1479	any similar deductible program, if the deductible program
1480	requires a minimum deductible amount of no less than 1 2 percent
1481	of the policy limits.
1482	3.  With respect to a policy covering a risk with dwelling
1483	limits of at least $100,000, but less than $250,000, the insurer
1484	may, in lieu of offering a policy with a $500 hurricane or wind
1485	deductible as required by subparagraph 1., offer a policy that
1486	the insurer guarantees it will not nonrenew for reasons of
1487	reducing hurricane loss for one renewal period and that contains
1488	up to a 2 percent hurricane or wind deductible as required by
1489	subparagraph 1.
1490	3.4.  With respect to a policy covering a risk with
1491	dwelling limits of $250,000 or more, the insurer need not offer
1492	the $500 hurricane deductible as required by subparagraph 1.,
1493	but must, except as otherwise provided in this subsection, offer
1494	the other hurricane deductibles as required by subparagraph 1.
1495	Section 22.  Section 627.70105, Florida Statutes, is
1496	created to read:
1497	627.70105  Hurricane coverage; additional
1498	requirement.--Each insurance contract providing hurricane
1499	coverage must include a provision that, if insured residential
1500	property becomes uninhabitable due to damage from a hurricane
1501	and the insurer is liable for living expenses of the insured
1502	while the covered property remains uninhabitable, initial living
1503	expense payments must be delivered to the insured no later than
1504	48 hours after a claim therefor is made with the insurer.
1505	Section 23.  The sum of $50 million is appropriated for
1506	fiscal year 2006-2007 on a nonrecurring basis from the General
1507	Revenue Fund to the Department of Community Affairs in the
1508	special appropriation category "Residential Hurricane Mitigation
1509	Low-Interest Loan Program" for low-interest loans to qualified
1510	owners of residences and qualified owners of mobile homes to
1511	finance efforts to improve the wind resistance of residences to
1512	prevent or reduce losses or reduce the cost of rebuilding after
1513	a disaster with a requirement of repayment by the owner, as
1514	provided in section 8. These funds shall be subject to the
1515	release provisions of chapter 216, Florida Statutes. Up to 0.5
1516	percent of this appropriation may be used by the department for
1517	administration of the loan program.
1518	Section 24.  Except as otherwise expressly provided in this
1519	act, this act shall take effect July 1, 2006.

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