Amendment
Bill No. 7225
Amendment No. 201953
CHAMBER ACTION
Senate House
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1Representative(s) Taylor offered the following:
2
3     Substitute Amendment for Amendment (074037) (with title
4amendment)
5Remove everything after the enacting clause, and insert:
6     Section 1.  Section 215.555, Florida Statutes, is amended
7to read:
8     215.555  Florida Hurricane Insurance Catastrophe Fund.--
9     (1)  FINDINGS AND PURPOSE.--The Legislature finds and
10declares as follows:
11     (a)  There is a compelling state interest in maintaining a
12viable and orderly private sector market for property insurance
13in this state. To the extent that the private sector is unable
14to maintain a viable and orderly market for property insurance
15in this state, state actions to maintain such a viable and
16orderly market are valid and necessary exercises of the police
17power.
18     (b)  As a result of unprecedented levels of catastrophic
19insured losses in recent years, and especially as a result of
20Hurricane Andrew and the 2004 and 2005 hurricane seasons,
21numerous insurers have determined that in order to protect their
22solvency, it is necessary for them to reduce their exposure to
23hurricane losses. Also as a result of these events, world
24reinsurance capacity has significantly contracted, increasing
25the pressure on insurers to reduce their catastrophic exposures.
26     (c)  Mortgages require reliable property insurance, and the
27unavailability of reliable property insurance would therefore
28make most real estate transactions impossible. In addition, the
29public health, safety, and welfare demand that structures
30damaged or destroyed in a catastrophe be repaired or
31reconstructed as soon as possible. Therefore, the inability of
32the private sector insurance and reinsurance markets to maintain
33sufficient capacity to enable residents of this state to obtain
34property insurance coverage in the private sector endangers the
35economy of the state and endangers the public health, safety,
36and welfare. Accordingly, state action to correct for this
37inability of the private sector constitutes a valid and
38necessary public and governmental purpose.
39     (d)  The insolvencies and financial impairments resulting
40from Hurricane Andrew and the 2004 and 2005 hurricane seasons
41demonstrate that many property insurers are unable or unwilling
42to maintain reserves, surplus, and reinsurance sufficient to
43enable the insurers to pay all claims in full in the event of a
44catastrophe. State action is therefore necessary to protect the
45public from an insurer's unwillingness or inability to maintain
46sufficient reserves, surplus, and reinsurance.
47     (e)  A state program to provide a stable and ongoing source
48of coverage reimbursement to insurers for a substantial portion
49of their catastrophic hurricane losses for citizens of this
50state will create additional insurance capacity sufficient to
51ameliorate the current dangers to the state's economy and to the
52public health, safety, and welfare.
53     (f)  It is essential to the functioning of a state program
54to increase insurance capacity that revenues received be exempt
55from federal taxation. It is therefore the intent of the
56Legislature that this program be structured as a state trust
57fund under the direction and control of the State Board of
58Administration and operate exclusively for the purpose of
59protecting and advancing the state's interest in maintaining
60insurance capacity in this state.
61     (g)  Hurricane Andrew, which caused insured and uninsured
62losses in excess of $20 billion, and the 2004 hurricane season,
63which caused insured losses in excess of $42 billion, will
64likely not be the last major windstorm to strike Florida.
65Recognizing that a future wind catastrophe could cause damages
66in excess of $60 billion, especially if a major urban area or
67series of urban areas were hit, it is the intent of the
68Legislature to balance equitably its concerns about mitigation
69of hurricane impact, insurance affordability and availability,
70and the risk of insurer and joint underwriting association
71insolvency, as well as assessment and bonding limitations.
72     (h)  Wind-storm coverage provided by Citizens Property
73Insurance Corporation has proven to be ineffective for
74homeowners in Florida. Following the 2004 and 2005 hurricane
75seasons, Citizens Property Insurance Corporation has levied
76assessments that have caused enormous financial constraints to
77all homeowners in Florida.
78     (2)  DEFINITIONS.--As used in this section:
79     (a)(m)  "Actual claims-paying capacity" means the sum of
80the balance of the fund as of December 31 of a contract year,
81plus any reinsurance purchased by the fund, plus the amount the
82board is able to raise through the issuance of revenue bonds
83under subsection (6).
84     (b)(a)  "Actuarially indicated" means, with respect to
85premiums paid to by insurers for reimbursement provided by the
86fund, an amount determined according to principles of actuarial
87science to be adequate, but not excessive, in the aggregate, to
88pay current and future obligations and expenses of the fund,
89including additional amounts if needed to pay debt service on
90revenue bonds issued under this section and to provide required
91debt service coverage in excess of the amounts required to pay
92actual debt service on revenue bonds issued under subsection
93(6), and determined according to principles of actuarial science
94to reflect each insurer's relative exposure to hurricane losses.
95     (c)(g)  "Bond" means any bond, debenture, note, or other
96evidence of financial indebtedness issued under this section.
97     (d)(n)  "Corporation" means the Florida Hurricane Insurance
98Catastrophe Fund Finance Corporation created in paragraph
99(6)(d).
100     (e)(b)  "Covered event" means any one storm declared to be
101a hurricane by the National Hurricane Center, which storm causes
102insured losses in this state.
103     (f)(c)  "Covered policy" means any hurricane insurance
104policy covering residential property in this state, including,
105but not limited to, any homeowner's, mobile home owner's, farm
106owner's, condominium association, condominium unit owner's,
107tenant's, or apartment building policy, or any other policy
108covering a residential structure or its contents issued by any
109authorized insurer, including the Citizens Property Insurance
110Corporation and any joint underwriting association or similar
111entity created pursuant to law. The term "covered policy"
112includes any collateral protection insurance policy covering
113personal residences which protects both the borrower's and the
114lender's financial interests, in an amount at least equal to the
115coverage for the dwelling in place under the lapsed homeowner's
116policy, if such policy can be accurately reported as required in
117subsection (5). Additionally, covered policies include policies
118covering the peril of wind removed from the Florida Residential
119Property and Casualty Joint Underwriting Association or from the
120Citizens Property Insurance Corporation, created pursuant to s.
121627.351(6), or from the Florida Windstorm Underwriting
122Association, created pursuant to s. 627.351(2), by an authorized
123insurer under the terms and conditions of an executed assumption
124agreement between the authorized insurer and such association or
125Citizens Property Insurance Corporation. Each assumption
126agreement between the association and such authorized insurer or
127Citizens Property Insurance Corporation must be approved by the
128Office of Insurance Regulation prior to the effective date of
129the assumption, and the Office of Insurance Regulation must
130provide written notification to the board within 15 working days
131after such approval. "Covered policy" does not include any
132policy that excludes wind coverage or hurricane coverage or any
133reinsurance agreement and does not include any policy otherwise
134meeting this definition which is issued by a surplus lines
135insurer or a reinsurer. All commercial residential excess
136policies and all deductible buy-back policies that, based on
137sound actuarial principles, require individual ratemaking shall
138be excluded by rule if the actuarial soundness of the fund is
139not jeopardized. For this purpose, the term "excess policy"
140means a policy that provides insurance protection for large
141commercial property risks and that provides a layer of coverage
142above a primary layer insured by another insurer.
143     (g)(h)  "Debt service" means the amount required in any
144fiscal year to pay the principal of, redemption premium, if any,
145and interest on revenue bonds and any amounts required by the
146terms of documents authorizing, securing, or providing liquidity
147for revenue bonds necessary to maintain in effect any such
148liquidity or security arrangements.
149     (h)(i)  "Debt service coverage" means the amount, if any,
150required by the documents under which revenue bonds are issued,
151which amount is to be received in any fiscal year in excess of
152the amount required to pay debt service for such fiscal year.
153     (i)(l)  "Estimated claims-paying capacity" means the sum of
154the projected year-end balance of the fund as of December 31 of
155a contract year, plus any reinsurance purchased by the fund,
156plus the board's estimate of the board's borrowing capacity.
157     (j)  "Local government" means a unit of general purpose
158local government as defined in s. 218.31(2).
159     (k)(d)  "Losses" means direct incurred losses under covered
160policies, which shall include losses for additional living
161expenses not to exceed 40 percent of the insured value of a
162residential structure or its contents and shall exclude loss
163adjustment expenses. "Losses" does not include losses for fair
164rental value, loss of use, or business interruption losses.
165     (l)(k)  "Pledged revenues" means all or any portion of
166revenues to be derived from reimbursement premiums under
167subsection (5) or from emergency assessments under paragraph
168(6)(b), as determined by the board.
169     (e)  "Retention" means the amount of losses below which an
170insurer is not entitled to reimbursement from the fund. An
171insurer's retention shall be calculated as follows:
172     1.  The board shall calculate and report to each insurer
173the retention multiples for that year. For the contract year
174beginning June 1, 2005, the retention multiple shall be equal to
175$4.5 billion divided by the total estimated reimbursement
176premium for the contract year; for subsequent years, the
177retention multiple shall be equal to $4.5 billion, adjusted
178based upon the reported exposure from the prior contract year to
179reflect the percentage growth in exposure to the fund for
180covered policies since 2004, divided by the total estimated
181reimbursement premium for the contract year. Total reimbursement
182premium for purposes of the calculation under this subparagraph
183shall be estimated using the assumption that all insurers have
184selected the 90-percent coverage level.
185     2.  The retention multiple as determined under subparagraph
1861. shall be adjusted to reflect the coverage level elected by
187the insurer. For insurers electing the 90-percent coverage
188level, the adjusted retention multiple is 100 percent of the
189amount determined under subparagraph 1. For insurers electing
190the 75-percent coverage level, the retention multiple is 120
191percent of the amount determined under subparagraph 1. For
192insurers electing the 45-percent coverage level, the adjusted
193retention multiple is 200 percent of the amount determined under
194subparagraph 1.
195     3.  An insurer shall determine its provisional retention by
196multiplying its provisional reimbursement premium by the
197applicable adjusted retention multiple and shall determine its
198actual retention by multiplying its actual reimbursement premium
199by the applicable adjusted retention multiple.
200     4.  For insurers who experience multiple covered events
201causing loss during the contract year, beginning June 1, 2005,
202each insurer's full retention shall be applied to each of the
203covered events causing the two largest losses for that insurer.
204For each other covered event resulting in losses, the insurer's
205retention shall be reduced to one-third of the full retention.
206The reimbursement contract shall provide for the reimbursement
207of losses for each covered event based on the full retention
208with adjustments made to reflect the reduced retentions after
209January 1 of the contract year provided the insurer reports its
210losses as specified in the reimbursement contract.
211     (m)(f)  "Workers' compensation" includes both workers'
212compensation and excess workers' compensation insurance.
213     (3)  FLORIDA HURRICANE INSURANCE CATASTROPHE FUND
214CREATED.--There is created the Florida Hurricane Insurance
215Catastrophe Fund to be administered by the State Board of
216Administration. Moneys in the fund may not be expended, loaned,
217or appropriated except to pay obligations of the fund arising
218out of reimbursement contracts entered into under subsection
219(4), payment of debt service on revenue bonds issued under
220subsection (6), costs of the mitigation program under subsection
221(7), costs of procuring reinsurance, and costs of administration
222of the fund. The board shall invest the moneys in the fund
223pursuant to ss. 215.44-215.52. Except as otherwise provided in
224this section, earnings from all investments shall be retained in
225the fund. The board may employ or contract with such staff and
226professionals as the board deems necessary for the
227administration of the fund. The board may adopt such rules as
228are reasonable and necessary to implement this section and shall
229specify interest due on any delinquent remittances, which
230interest may not exceed the fund's rate of return plus 5
231percent. Such rules must conform to the Legislature's specific
232intent in establishing the fund as expressed in subsection (1),
233must enhance the fund's potential ability to respond to claims
234for covered events, must contain general provisions so that the
235rules can be applied with reasonable flexibility so as to
236accommodate insurers in situations of an unusual nature or where
237undue hardship may result, except that such flexibility may not
238in any way impair, override, supersede, or constrain the public
239purpose of the fund, and must be consistent with sound insurance
240practices. The board may, by rule, provide for the exemption
241from subsections (4) and (5) of insurers writing covered
242policies with less than $10 million in aggregate exposure for
243covered policies if the exemption does not affect the actuarial
244soundness of the fund.
245     (4)  REIMBURSEMENT CONTRACTS.--
246     (a)  The board shall enter into a contract with each
247insurer writing hurricane-covered covered policies in this state
248to provide to the insurer the reimbursement described in
249paragraphs (b) and (d), in exchange for the reimbursement
250premium paid into the fund under subsection (5). As a condition
251of doing business in this state, each such insurer shall enter
252into such a contract.
253     (b)1.  The contract shall contain a promise by the board to
254reimburse the insurer for losses as provided in this paragraph
255as a result of a covered event 45 percent, 75 percent, or 90
256percent of its losses from each covered event in excess of the
257insurer's retention, plus 5 percent of the reimbursed losses to
258cover loss adjustment expenses.
259     2.  The insurer shall provide hurricane coverage for any
260policyholder selecting this coverage. The insurer shall collect
261premiums from policyholders as determined by the state and remit
262premium collections to the state to be deposited in the Florida
263Hurricane Insurance Fund must elect one of the percentage
264coverage levels specified in this paragraph and may, upon
265renewal of a reimbursement contract, elect a lower percentage
266coverage level if no revenue bonds issued under subsection (6)
267after a covered event are outstanding, or elect a higher
268percentage coverage level, regardless of whether or not revenue
269bonds are outstanding. All members of an insurer group must
270elect the same percentage coverage level. Any joint underwriting
271association, risk apportionment plan, or other entity created
272under s. 627.351 must elect the 90-percent coverage level.
273     3.  The contract shall provide that reimbursement coverage
274for any hurricane loss must be paid to the insurer. A
275policyholder shall submit all claims to the insurer for payment
276for all related losses.
277     4.  A policyholder shall pay hurricane peril premiums to
278the insurer, and the insurer shall remit collected premiums to
279the state.
280     5.  An insurer shall contract with the state to provide
281hurricane peril coverage to policyholders and provide coverage
282directly to policyholders for losses as a result of a covered
283event. The state shall reimburse the insurer from the Florida
284Hurricane Insurance Fund for all reimbursements made by the
285insurer to policyholders as a result of a covered event.
286     6.  Premiums paid by a policyholder must provide, through
287the fund, a maximum coverage of $100,000.
288     7.  A policyholder may select hurricane deductibles of 1,
2892, 5, or 10 percent.
290     8.  An insurer may choose to provide additional coverage
291beyond the fund's coverage of $100,000 for its policyholders.
292     9.  An insurer shall provide claims adjustment and
293reimbursement for losses directly to its policyholders. Once
294reimbursement amounts have been determined for policyholders, an
295insurer shall submit a request for reimbursement through the
296fund for payments made to policyholders for hurricane loss.
297Insurers will be reimbursed for 90 percent of adjusted hurricane
298losses sustained by policyholders.
299     10.  The $100,000 maximum coverage shall be adjusted every
3003 years based on the home rate index.
301     11.  Discounted premiums shall be provided by the fund for
302an insurer who encourages its policyholders to engage in loss
303mitigation following damage to or loss of property amounts shall
304not be reduced by reinsurance paid or payable to the insurer
305from other sources.
306     (c)1.  The contract shall also provide that the obligation
307of the board with respect to all contracts covering a particular
308contract year shall not exceed the actual claims-paying capacity
309of the fund up to a limit of $15 billion for that contract year
310adjusted based upon the reported exposure from the prior
311contract year to reflect the percentage growth in exposure to
312the fund for covered policies since 2003, provided the dollar
313growth in the limit may not increase in any year by an amount
314greater than the dollar growth of the cash balance which
315occurred over the prior calendar year.
316     2.  In May before the start of the upcoming contract year
317and in October during the contract year, the board shall publish
318in the Florida Administrative Weekly a statement of the fund's
319estimated borrowing capacity and the projected balance of the
320fund as of December 31. After the end of each calendar year, the
321board shall notify insurers of the estimated borrowing capacity
322and the balance of the fund as of December 31 to provide
323insurers with data necessary to assist them in determining their
324actuarially sound premiums retention and projected payout from
325the fund for loss reimbursement purposes. In conjunction with
326the development of the premium formula, as provided for in
327subsection (5), the board shall publish factors or multiples
328that assist insurers in determining their retention and
329projected payout for the next contract year. For all regulatory
330and reinsurance purposes, an insurer may calculate its projected
331payout from the fund as its share of the total fund premium for
332the current contract year multiplied by the sum of the projected
333balance of the fund as of December 31 and the estimated
334borrowing capacity for that contract year as reported under this
335subparagraph.
336     (d)1.  For purposes of determining potential liability and
337to aid in the sound administration of the fund, the contract
338shall require each insurer to report such insurer's losses from
339each covered event on an interim basis, as directed by the
340board. The contract shall require the insurer to report to the
341board no later than December 31 of each year, and quarterly
342thereafter, its reimbursable losses from covered events for the
343year. The contract shall require the board to determine and pay,
344as soon as practicable after receiving these reports of
345reimbursable losses, the initial amount of reimbursement due and
346adjustments to this amount based on later loss information. The
347adjustments to reimbursement amounts shall require the board to
348pay, or the insurer to return, amounts reflecting the most
349recent calculation of losses.
350     2.  In determining reimbursements pursuant to this
351subsection, the contract shall provide that the board shall:
352     a.  First reimburse insurers within 90 days after reporting
353policyholder-paid losses as a result of a covered event writing
354covered policies, which insurers are in full compliance with
355this section and have petitioned the Office of Insurance
356Regulation and qualified as limited apportionment companies
357under s. 627.351(2)(b)3. The amount of such reimbursement shall
358be the lesser of $10 million or an amount equal to 10 times the
359insurer's reimbursement premium for the current year. The amount
360of reimbursement paid under this sub-subparagraph may not exceed
361the full amount of reimbursement promised in the reimbursement
362contract. This sub-subparagraph does not apply with respect to
363any contract year in which the year-end projected cash balance
364of the fund, exclusive of any bonding capacity of the fund,
365exceeds $2 billion. Only one member of any insurer group may
366receive reimbursement under this sub-subparagraph.
367     b.  Next pay to each insurer such insurer's projected
368payout, which is the amount of reimbursement it is owed, up to
369an amount equal to the insurer's share of the actual premium
370paid for that contract year, multiplied by the actual claims-
371paying capacity available for that contract year; provided,
372entities created pursuant to s. 627.351 shall be further
373reimbursed in accordance with sub-subparagraph c.
374     c.  Thereafter, establish the prorated reimbursement level
375at the highest level for which any remaining fund balance or
376bond proceeds are sufficient to reimburse entities created
377pursuant to s. 627.351 based on reimbursable losses exceeding
378the amounts payable pursuant to sub-subparagraph b. for the
379current contract year.
380     (e)1.  Except as provided in subparagraphs 2. and 3., the
381contract shall provide that if an insurer demonstrates to the
382board that it is likely to qualify for reimbursement under the
383contract, and demonstrates to the board that the immediate
384receipt of moneys from the board is likely to prevent the
385insurer from becoming insolvent, the board shall advance the
386insurer, at market interest rates, the amounts necessary to
387maintain the solvency of the insurer, up to 50 percent of the
388board's estimate of the reimbursement due the insurer. The
389insurer's reimbursement shall be reduced by an amount equal to
390the amount of the advance and interest thereon.
391     2.  With respect only to an entity created under s.
392627.351, the contract shall also provide that the board may,
393upon application by such entity, advance to such entity, at
394market interest rates, up to 90 percent of the lesser of:
395     a.  The board's estimate of the amount of reimbursement due
396to such entity; or
397     b.  The entity's share of the actual reimbursement premium
398paid for that contract year, multiplied by the currently
399available liquid assets of the fund. In order for the entity to
400qualify for an advance under this subparagraph, the entity must
401demonstrate to the board that the advance is essential to allow
402the entity to pay claims for a covered event and the board must
403determine that the fund's assets are sufficient and are
404sufficiently liquid to allow the board to make an advance to the
405entity and still fulfill the board's reimbursement obligations
406to other insurers. The entity's final reimbursement for any
407contract year in which an advance has been made under this
408subparagraph must be reduced by an amount equal to the amount of
409the advance and any interest on such advance. In order to
410determine what amounts, if any, are due the entity, the board
411may require the entity to report its exposure and its losses at
412any time to determine retention levels and reimbursements
413payable.
414     3.  The contract shall also provide specifically and solely
415with respect to any limited apportionment company under s.
416627.351(2)(b)3. that the board may, upon application by such
417company, advance to such company the amount of the estimated
418reimbursement payable to such company as calculated pursuant to
419paragraph (d), at market interest rates, if the board determines
420that the fund's assets are sufficient and are sufficiently
421liquid to permit the board to make an advance to such company
422and at the same time fulfill its reimbursement obligations to
423the insurers that are participants in the fund. Such company's
424final reimbursement for any contract year in which an advance
425pursuant to this subparagraph has been made shall be reduced by
426an amount equal to the amount of the advance and interest
427thereon. In order to determine what amounts, if any, are due to
428such company, the board may require such company to report its
429exposure and its losses at such times as may be required to
430determine retention levels and loss reimbursements payable.
431     (e)(f)  In order to ensure that insurers have properly
432reported the insured values on which the reimbursement premium
433is based and to ensure that insurers have properly reported the
434losses for which reimbursements have been made, the board shall
435inspect, examine, and verify the records of each insurer's
436covered policies at such times as the board deems appropriate
437and according to standards established by rule for the specific
438purpose of validating the accuracy of exposures and losses
439required to be reported under the terms and conditions of the
440reimbursement contract. The costs of the examinations shall be
441borne by the board. However, in order to remove any incentive
442for an insurer to delay preparations for an examination, the
443board shall be reimbursed by the insurer for any examination
444expenses incurred in addition to the usual and customary costs
445of the examination, which additional expenses were incurred as a
446result of an insurer's failure, despite proper notice, to be
447prepared for the examination or as a result of an insurer's
448failure to provide requested information while the examination
449is in progress. If the board finds any insurer's records or
450other necessary information to be inadequate or inadequately
451posted, recorded, or maintained, the board may employ experts to
452reconstruct, rewrite, record, post, or maintain such records or
453information, at the expense of the insurer being examined, if
454such insurer has failed to maintain, complete, or correct such
455records or deficiencies after the board has given the insurer
456notice and a reasonable opportunity to do so. Any information
457contained in an examination report, which information is
458described in s. 215.557, is confidential and exempt from the
459provisions of s. 119.07(1) and s. 24(a), Art. I of the State
460Constitution, as provided in s. 215.557. Nothing in this
461paragraph expands the exemption in s. 215.557.
462     (f)(g)  The contract shall provide that in the event of the
463insolvency of an insurer, the fund shall pay directly to the
464Florida Insurance Guaranty Association for the benefit of
465Florida policyholders of the insurer the net amount of all
466reimbursement moneys owed to the insurer. As used in this
467paragraph, the term "net amount of all reimbursement moneys"
468means that amount which remains after reimbursement for:
469     1.  Preliminary or duplicate payments owed to private
470reinsurers or other inuring reinsurance payments to private
471reinsurers that satisfy statutory or contractual obligations of
472the insolvent insurer attributable to covered events to such
473reinsurers; or
474     2.  Funds owed to a bank or other financial institution to
475cover obligations of the insolvent insurer under a credit
476agreement that assists the insolvent insurer in paying claims
477attributable to covered events.
478
479The private reinsurers, banks, or other financial institutions
480shall be reimbursed or otherwise paid prior to payment to the
481Florida Insurance Guaranty Association, notwithstanding any law
482to the contrary. The guaranty association shall pay all claims
483up to the maximum amount permitted by chapter 631; thereafter,
484any remaining moneys shall be paid pro rata to claims not fully
485satisfied. This paragraph does not apply to a joint underwriting
486association, risk apportionment plan, or other entity created
487under s. 627.351.
488     (5)  REIMBURSEMENT PREMIUMS.--
489     (a)  Each reimbursement contract shall require the insurer
490to annually pay to the fund an actuarially indicated premium for
491the reimbursement of hurricane losses.
492     (b)  The State Board of Administration shall select an
493independent consultant to develop a formula for determining the
494actuarially indicated premium to be paid to the fund. The
495formula shall specify, for each zip code or other limited
496geographical area, the amount of premium to be paid by an
497insurer for each $1,000 of insured value under covered policies
498in that zip code or other area. In establishing premiums, the
499board shall consider the coverage elected under paragraph (4)(b)
500and any factors that tend to enhance the actuarial
501sophistication of ratemaking for the fund, including
502deductibles, type of construction, type of coverage provided,
503relative concentration of risks, loss mitigation efforts, a
504factor providing for more rapid cash buildup in the fund until
505the fund capacity for a single hurricane season is fully funded,
506and other such factors deemed by the board to be appropriate.
507The formula may provide for a procedure to determine the
508premiums to be paid by new insurers that begin writing covered
509policies after the beginning of a contract year, taking into
510consideration when the insurer starts writing covered policies,
511the potential exposure of the insurer, the potential exposure of
512the fund, the administrative costs to the insurer and to the
513fund, and any other factors deemed appropriate by the board. The
514formula must be approved by unanimous vote of the board. The
515board may, at any time, revise the formula pursuant to the
516procedure provided in this paragraph.
517     (c)  No later than September 1 of each year, each insurer
518shall notify the board of its insured values under covered
519policies by zip code, as of June 30 of that year. On the basis
520of these reports, the board shall calculate the premium due from
521the insurer, based on the formula adopted under paragraph (b).
522The insurer shall pay the required annual premium pursuant to a
523periodic payment plan specified in the contract. The board shall
524provide for payment of reimbursement premium in periodic
525installments and for the adjustment of provisional premium
526installments collected prior to submission of the exposure
527report to reflect data in the exposure report. The board shall
528collect interest on late reimbursement premium payments
529consistent with the assumptions made in developing the premium
530formula in accordance with paragraph (b).
531     (d)  All premiums paid to the fund under reimbursement
532contracts shall be treated as premium for approved reinsurance
533for all accounting and regulatory purposes.
534     (6)  REVENUE BONDS.--
535     (a)  General provisions.--
536     1.  Upon the occurrence of a hurricane and a determination
537that the moneys in the fund are or will be insufficient to pay
538reimbursement at the levels promised in the reimbursement
539contracts, the board may take the necessary steps under
540paragraph (c) or paragraph (d) for the issuance of revenue bonds
541for the benefit of the fund. The proceeds of such revenue bonds
542may be used to make reimbursement payments under reimbursement
543contracts; to refinance or replace previously existing
544borrowings or financial arrangements; to pay interest on bonds;
545to fund reserves for the bonds; to pay expenses incident to the
546issuance or sale of any bond issued under this section,
547including costs of validating, printing, and delivering the
548bonds, costs of printing the official statement, costs of
549publishing notices of sale of the bonds, and related
550administrative expenses; or for such other purposes related to
551the financial obligations of the fund as the board may
552determine. The term of the bonds may not exceed 30 years. The
553board may pledge or authorize the corporation to pledge all or a
554portion of all revenues under subsection (5) and under paragraph
555(b) to secure such revenue bonds and the board may execute such
556agreements between the board and the issuer of any revenue bonds
557and providers of other financing arrangements under paragraph
558(7)(b) as the board deems necessary to evidence, secure,
559preserve, and protect such pledge. If reimbursement premiums
560received under subsection (5) or earnings on such premiums are
561used to pay debt service on revenue bonds, such premiums and
562earnings shall be used only after the use of the moneys derived
563from assessments under paragraph (b). The funds, credit,
564property, or taxing power of the state or political subdivisions
565of the state shall not be pledged for the payment of such bonds.
566The board may also enter into agreements under paragraph (c) or
567paragraph (d) for the purpose of issuing revenue bonds in the
568absence of a hurricane upon a determination that such action
569would maximize the ability of the fund to meet future
570obligations.
571     2.  The Legislature finds and declares that the issuance of
572bonds under this subsection is for the public purpose of paying
573the proceeds of the bonds to insurers, thereby enabling insurers
574to pay the claims of policyholders to assure that policyholders
575are able to pay the cost of construction, reconstruction,
576repair, restoration, and other costs associated with damage to
577property of policyholders of covered policies after the
578occurrence of a hurricane. Revenue bonds may not be issued under
579this subsection until validated under chapter 75. The validation
580of at least the first obligations incurred pursuant to this
581subsection shall be appealed to the Supreme Court, to be handled
582on an expedited basis.
583     (b)  Emergency assessments.--
584     1.  If the board determines that the amount of revenue
585produced under subsection (5) is insufficient to fund the
586obligations, costs, and expenses of the fund and the
587corporation, including repayment of revenue bonds and that
588portion of the debt service coverage not met by reimbursement
589premiums, the board shall direct the Office of Insurance
590Regulation to levy, by order, an emergency assessment on direct
591premiums for all property and casualty lines of business in this
592state, including property and casualty business of surplus lines
593insurers regulated under part VIII of chapter 626, but not
594including any workers' compensation premiums or medical
595malpractice premiums. As used in this subsection, the term
596"property and casualty business" includes all lines of business
597identified on Form 2, Exhibit of Premiums and Losses, in the
598annual statement required of authorized insurers by s. 624.424
599and any rule adopted under this section, except for those lines
600identified as accident and health insurance and except for
601policies written under the National Flood Insurance Program. The
602assessment shall be specified as a percentage of future premium
603collections and is subject to annual adjustments by the board to
604reflect changes in premiums subject to assessments collected
605under this subparagraph in order to meet debt obligations. The
606same percentage shall apply to all policies in lines of business
607subject to the assessment issued or renewed during the 12-month
608period beginning on the effective date of the assessment.
609     2.  A premium is not subject to an annual assessment under
610this paragraph in excess of 6 percent of premium with respect to
611obligations arising out of losses attributable to any one
612contract year, and a premium is not subject to an aggregate
613annual assessment under this paragraph in excess of 10 percent
614of premium. An annual assessment under this paragraph shall
615continue until the revenue bonds issued with respect to which
616the assessment was imposed are outstanding, including any bonds
617the proceeds of which were used to refund the revenue bonds,
618unless adequate provision has been made for the payment of the
619bonds under the documents authorizing issuance of the bonds.
620     3.  With respect to each insurer collecting premiums that
621are subject to the assessment, the insurer shall collect the
622assessment at the same time as it collects the premium payment
623for each policy and shall remit the assessment collected to the
624fund or corporation as provided in the order issued by the
625Office of Insurance Regulation. The office shall verify the
626accurate and timely collection and remittance of emergency
627assessments and shall report the information to the board in a
628form and at a time specified by the board. Each insurer
629collecting assessments shall provide the information with
630respect to premiums and collections as may be required by the
631office to enable the office to monitor and verify compliance
632with this paragraph.
633     4.  With respect to assessments of surplus lines premiums,
634each surplus lines agent shall collect the assessment at the
635same time as the agent collects the surplus lines tax required
636by s. 626.932, and the surplus lines agent shall remit the
637assessment to the Florida Surplus Lines Service Office created
638by s. 626.921 at the same time as the agent remits the surplus
639lines tax to the Florida Surplus Lines Service Office. The
640emergency assessment on each insured procuring coverage and
641filing under s. 626.938 shall be remitted by the insured to the
642Florida Surplus Lines Service Office at the time the insured
643pays the surplus lines tax to the Florida Surplus Lines Service
644Office. The Florida Surplus Lines Service Office shall remit the
645collected assessments to the fund or corporation as provided in
646the order levied by the Office of Insurance Regulation. The
647Florida Surplus Lines Service Office shall verify the proper
648application of such emergency assessments and shall assist the
649board in ensuring the accurate and timely collection and
650remittance of assessments as required by the board. The Florida
651Surplus Lines Service Office shall annually calculate the
652aggregate written premium on property and casualty business,
653other than workers' compensation and medical malpractice,
654procured through surplus lines agents and insureds procuring
655coverage and filing under s. 626.938 and shall report the
656information to the board in a form and at a time specified by
657the board.
658     5.  Any assessment authority not used for a particular
659contract year may be used for a subsequent contract year. If,
660for a subsequent contract year, the board determines that the
661amount of revenue produced under subsection (5) is insufficient
662to fund the obligations, costs, and expenses of the fund and the
663corporation, including repayment of revenue bonds and that
664portion of the debt service coverage not met by reimbursement
665premiums, the board shall direct the Office of Insurance
666Regulation to levy an emergency assessment up to an amount not
667exceeding the amount of unused assessment authority from a
668previous contract year or years, plus an additional 4 percent
669provided that the assessments in the aggregate do not exceed the
670limits specified in subparagraph 2.
671     6.  The assessments otherwise payable to the corporation
672under this paragraph shall be paid to the fund unless and until
673the Office of Insurance Regulation and the Florida Surplus Lines
674Service Office have received from the corporation and the fund a
675notice, which shall be conclusive and upon which they may rely
676without further inquiry, that the corporation has issued bonds
677and the fund has no agreements in effect with local governments
678under paragraph (c). On or after the date of the notice and
679until the date the corporation has no bonds outstanding, the
680fund shall have no right, title, or interest in or to the
681assessments, except as provided in the fund's agreement with the
682corporation.
683     7.  Emergency assessments are not premium and are not
684subject to the premium tax, to the surplus lines tax, to any
685fees, or to any commissions. An insurer is liable for all
686assessments that it collects and must treat the failure of an
687insured to pay an assessment as a failure to pay the premium. An
688insurer is not liable for uncollectible assessments.
689     8.  When an insurer is required to return an unearned
690premium, it shall also return any collected assessment
691attributable to the unearned premium. A credit adjustment to the
692collected assessment may be made by the insurer with regard to
693future remittances that are payable to the fund or corporation,
694but the insurer is not entitled to a refund.
695     9.  When a surplus lines insured or an insured who has
696procured coverage and filed under s. 626.938 is entitled to the
697return of an unearned premium, the Florida Surplus Lines Service
698Office shall provide a credit or refund to the agent or such
699insured for the collected assessment attributable to the
700unearned premium prior to remitting the emergency assessment
701collected to the fund or corporation.
702     10.  The exemption of medical malpractice insurance
703premiums from emergency assessments under this paragraph is
704repealed May 31, 2007, and medical malpractice insurance
705premiums shall be subject to emergency assessments attributable
706to loss events occurring in the contract years commencing on
707June 1, 2007.
708     (c)  Revenue bond issuance through counties or
709municipalities.--
710     1.  If the board elects to enter into agreements with local
711governments for the issuance of revenue bonds for the benefit of
712the fund, the board shall enter into such contracts with one or
713more local governments, including agreements providing for the
714pledge of revenues, as are necessary to effect such issuance.
715The governing body of a county or municipality is authorized to
716issue bonds as defined in s. 125.013 or s. 166.101 from time to
717time to fund an assistance program, in conjunction with the
718Florida Hurricane Insurance Catastrophe Fund, for the purposes
719set forth in this section or for the purpose of paying the costs
720of construction, reconstruction, repair, restoration, and other
721costs associated with damage to properties of policyholders of
722covered policies due to the occurrence of a hurricane by
723assuring that policyholders located in this state are able to
724recover claims under property insurance policies after a covered
725event.
726     2.  In order to avoid needless and indiscriminate
727proliferation, duplication, and fragmentation of such assistance
728programs, any local government may provide for the payment of
729fund reimbursements, regardless of whether or not the losses for
730which reimbursement is made occurred within or outside of the
731territorial jurisdiction of the local government.
732     3.  The state hereby covenants with holders of bonds issued
733under this paragraph that the state will not repeal or abrogate
734the power of the board to direct the Office of Insurance
735Regulation to levy the assessments and to collect the proceeds
736of the revenues pledged to the payment of such bonds as long as
737any such bonds remain outstanding unless adequate provision has
738been made for the payment of such bonds pursuant to the
739documents authorizing the issuance of such bonds.
740     4.  There shall be no liability on the part of, and no
741cause of action shall arise against any members or employees of
742the governing body of a local government for any actions taken
743by them in the performance of their duties under this paragraph.
744     (d)  Florida Hurricane Insurance Catastrophe Fund Finance
745Corporation.--
746     1.  In addition to the findings and declarations in
747subsection (1), the Legislature also finds and declares that:
748     a.  The public benefits corporation created under this
749paragraph will provide a mechanism necessary for the cost-
750effective and efficient issuance of bonds. This mechanism will
751eliminate unnecessary costs in the bond issuance process,
752thereby increasing the amounts available to pay reimbursement
753for losses to property sustained as a result of hurricane
754damage.
755     b.  The purpose of such bonds is to fund reimbursements
756through the Florida Hurricane Insurance Catastrophe Fund to pay
757for the costs of construction, reconstruction, repair,
758restoration, and other costs associated with damage to
759properties of policyholders of covered policies due to the
760occurrence of a hurricane.
761     c.  The efficacy of the financing mechanism will be
762enhanced by the corporation's ownership of the assessments, by
763the insulation of the assessments from possible bankruptcy
764proceedings, and by covenants of the state with the
765corporation's bondholders.
766     2.a.  There is created a public benefits corporation, which
767is an instrumentality of the state, to be known as the Florida
768Hurricane Insurance Catastrophe Fund Finance Corporation.
769     b.  The corporation shall operate under a five-member board
770of directors consisting of the Governor or a designee, the Chief
771Financial Officer or a designee, the Attorney General or a
772designee, the director of the Division of Bond Finance of the
773State Board of Administration, and the senior employee of the
774State Board of Administration responsible for operations of the
775Florida Hurricane Insurance Catastrophe Fund.
776     c.  The corporation has all of the powers of corporations
777under chapter 607 and under chapter 617, subject only to the
778provisions of this subsection.
779     d.  The corporation may issue bonds and engage in such
780other financial transactions as are necessary to provide
781sufficient funds to achieve the purposes of this section.
782     e.  The corporation may invest in any of the investments
783authorized under s. 215.47.
784     f.  There shall be no liability on the part of, and no
785cause of action shall arise against, any board members or
786employees of the corporation for any actions taken by them in
787the performance of their duties under this paragraph.
788     3.a.  In actions under chapter 75 to validate any bonds
789issued by the corporation, the notice required by s. 75.06 shall
790be published only in Leon County and in two newspapers of
791general circulation in the state, and the complaint and order of
792the court shall be served only on the State Attorney of the
793Second Judicial Circuit.
794     b.  The state hereby covenants with holders of bonds of the
795corporation that the state will not repeal or abrogate the power
796of the board to direct the Office of Insurance Regulation to
797levy the assessments and to collect the proceeds of the revenues
798pledged to the payment of such bonds as long as any such bonds
799remain outstanding unless adequate provision has been made for
800the payment of such bonds pursuant to the documents authorizing
801the issuance of such bonds.
802     4.  The bonds of the corporation are not a debt of the
803state or of any political subdivision, and neither the state nor
804any political subdivision is liable on such bonds. The
805corporation does not have the power to pledge the credit, the
806revenues, or the taxing power of the state or of any political
807subdivision. The credit, revenues, or taxing power of the state
808or of any political subdivision shall not be deemed to be
809pledged to the payment of any bonds of the corporation.
810     5.a.  The property, revenues, and other assets of the
811corporation; the transactions and operations of the corporation
812and the income from such transactions and operations; and all
813bonds issued under this paragraph and interest on such bonds are
814exempt from taxation by the state and any political subdivision,
815including the intangibles tax under chapter 199 and the income
816tax under chapter 220. This exemption does not apply to any tax
817imposed by chapter 220 on interest, income, or profits on debt
818obligations owned by corporations other than the Florida
819Hurricane Insurance Catastrophe Fund Finance Corporation.
820     b.  All bonds of the corporation shall be and constitute
821legal investments without limitation for all public bodies of
822this state; for all banks, trust companies, savings banks,
823savings associations, savings and loan associations, and
824investment companies; for all administrators, executors,
825trustees, and other fiduciaries; for all insurance companies and
826associations and other persons carrying on an insurance
827business; and for all other persons who are now or may hereafter
828be authorized to invest in bonds or other obligations of the
829state and shall be and constitute eligible securities to be
830deposited as collateral for the security of any state, county,
831municipal, or other public funds. This sub-subparagraph shall be
832considered as additional and supplemental authority and shall
833not be limited without specific reference to this sub-
834subparagraph.
835     6.  The corporation and its corporate existence shall
836continue until terminated by law; however, no such law shall
837take effect as long as the corporation has bonds outstanding
838unless adequate provision has been made for the payment of such
839bonds pursuant to the documents authorizing the issuance of such
840bonds. Upon termination of the existence of the corporation, all
841of its rights and properties in excess of its obligations shall
842pass to and be vested in the state.
843     (e)  Protection of bondholders.--
844     1.  As long as the corporation has any bonds outstanding,
845neither the fund nor the corporation shall have the authority to
846file a voluntary petition under chapter 9 of the federal
847Bankruptcy Code or such corresponding chapter or sections as may
848be in effect, from time to time, and neither any public officer
849nor any organization, entity, or other person shall authorize
850the fund or the corporation to be or become a debtor under
851chapter 9 of the federal Bankruptcy Code or such corresponding
852chapter or sections as may be in effect, from time to time,
853during any such period.
854     2.  The state hereby covenants with holders of bonds of the
855corporation that the state will not limit or alter the denial of
856authority under this paragraph or the rights under this section
857vested in the fund or the corporation to fulfill the terms of
858any agreements made with such bondholders or in any way impair
859the rights and remedies of such bondholders as long as any such
860bonds remain outstanding unless adequate provision has been made
861for the payment of such bonds pursuant to the documents
862authorizing the issuance of such bonds.
863     3.  Notwithstanding any other provision of law, any pledge
864of or other security interest in revenue, money, accounts,
865contract rights, general intangibles, or other personal property
866made or created by the fund or the corporation shall be valid,
867binding, and perfected from the time such pledge is made or
868other security interest attaches without any physical delivery
869of the collateral or further act and the lien of any such pledge
870or other security interest shall be valid, binding, and
871perfected against all parties having claims of any kind in tort,
872contract, or otherwise against the fund or the corporation
873irrespective of whether or not such parties have notice of such
874claims. No instrument by which such a pledge or security
875interest is created nor any financing statement need be recorded
876or filed.
877     (7)  ADDITIONAL POWERS AND DUTIES.--
878     (a)  The board may procure reinsurance from reinsurers
879acceptable to the Office of Insurance Regulation for the purpose
880of maximizing the capacity of the fund.
881     (b)  In addition to borrowing under subsection (6), the
882board may also borrow from, or enter into other financing
883arrangements with, any market sources at prevailing interest
884rates.
885     (c)  Each fiscal year, the Legislature shall appropriate
886from the investment income of the Florida Hurricane Catastrophe
887Fund an amount no less than $10 million and no more than 35
888percent of the investment income based upon the most recent
889fiscal year-end audited financial statements for the purpose of
890providing funding for local governments, state agencies, public
891and private educational institutions, and nonprofit
892organizations to support programs intended to improve hurricane
893preparedness, reduce potential losses in the event of a
894hurricane, provide research into means to reduce such losses,
895educate or inform the public as to means to reduce hurricane
896losses, assist the public in determining the appropriateness of
897particular upgrades to structures or in the financing of such
898upgrades, or protect local infrastructure from potential damage
899from a hurricane. Moneys shall first be available for
900appropriation under this paragraph in fiscal year 1997-1998.
901Moneys in excess of the $10 million specified in this paragraph
902shall not be available for appropriation under this paragraph if
903the State Board of Administration finds that an appropriation of
904investment income from the fund would jeopardize the actuarial
905soundness of the fund.
906     (c)(d)  The board may allow insurers to comply with
907reporting requirements and reporting format requirements by
908using alternative methods of reporting if the proper
909administration of the fund is not thereby impaired and if the
910alternative methods produce data which is consistent with the
911purposes of this section.
912     (d)(e)  In order to assure the equitable operation of the
913fund, the board may impose a reasonable fee on an insurer to
914recover costs involved in reprocessing inaccurate, incomplete,
915or untimely exposure data submitted by the insurer.
916     (8)  ADVISORY COUNCIL.--The State Board of Administration
917shall appoint a nine-member Florida Hurricane Insurance Fund
918Advisory Council that consists of an actuary, a meteorologist,
919an engineer, a representative of insurers, a representative of
920insurance agents, a representative of reinsurers, and three
921consumers who shall also be representatives of other affected
922professions and industries, to provide the board with
923information and advice in connection with its duties under this
924section. Members of the advisory council shall serve at the
925pleasure of the board and are eligible for per diem and travel
926expenses under s. 112.061.
927     (9)  APPLICABILITY OF S. 19, ART. III OF THE STATE
928CONSTITUTION.--The Legislature finds that the Florida Hurricane
929Insurance Catastrophe Fund created by this section is a trust
930fund established for bond covenants, indentures, or resolutions
931within the meaning of s. 19(f)(3), Art. III of the State
932Constitution.
933     (10)  VIOLATIONS.--Any violation of this section or of
934rules adopted under this section constitutes a violation of the
935insurance code.
936     (11)  LEGAL PROCEEDINGS.--The board is authorized to take
937any action necessary to enforce the rules, and the provisions
938and requirements of the reimbursement contract, required by and
939adopted pursuant to this section.
940     (12)  FEDERAL OR MULTISTATE CATASTROPHIC FUNDS.--Upon the
941creation of a federal or multistate catastrophic insurance or
942reinsurance program intended to serve purposes similar to the
943purposes of the fund created by this section, the State Board of
944Administration shall promptly make recommendations to the
945Legislature for coordination with the federal or multistate
946program, for termination of the fund, or for such other actions
947as the board finds appropriate in the circumstances.
948     (13)  REVERSION OF FUND ASSETS UPON TERMINATION.--The fund
949and the duties of the board under this section may be terminated
950only by law. Upon termination of the fund, all assets of the
951fund shall revert to the General Revenue Fund.
952     (14)  SEVERABILITY.--If any provision of this section or
953its application to any person or circumstance is held invalid,
954the invalidity does not affect other provisions or applications
955of the section which can be given effect without the invalid
956provision or application, and to this end the provisions of this
957section are declared severable.
958     (15)  COLLATERAL PROTECTION INSURANCE.--As used in this
959section and ss. 627.311 and 627.351, the term "collateral
960protection insurance" means commercial property insurance of
961which a creditor is the primary beneficiary and policyholder and
962which protects or covers an interest of the creditor arising out
963of a credit transaction secured by real or personal property.
964Initiation of such coverage is triggered by the mortgagor's
965failure to maintain insurance coverage as required by the
966mortgage or other lending document. Collateral protection
967insurance is not residential coverage.
968     Section 2.  Section 215.556, Florida Statutes, is amended
969to read:
970     215.556  Exemption.--The Florida Hurricane Insurance
971Catastrophe Fund created by s. 215.555 is exempt from the
972deduction required by s. 215.20(1).
973     Section 3.  Section 215.558, Florida Statutes, is created
974to read:
975     215.558  Florida Hurricane Damage Prevention Endowment.--
976     (1)  PURPOSE AND INTENT.--The purpose of this section is to
977provide a continuing source of funding for financial incentives
978to encourage residential property owners of this state to
979retrofit their properties to make them less vulnerable to
980hurricane damage, to help decrease the cost of residential
981property and casualty insurance, and to provide matching funds
982to local governments and nonprofit entities for projects that
983will reduce hurricane damage to residential properties. It is
984the intent of the Legislature that this section be construed
985liberally to effectuate its purpose.
986     (2)  DEFINITIONS.--As used in this section:
987     (a)  "Board" means the State Board of Administration.
988     (b)  "Corpus" means the money that has been appropriated to
989the endowment by the 2006 Legislature, together with any amounts
990subsequently appropriated to the endowment that are specifically
991designated as contributions to the corpus and any grants, gifts,
992or donations to the endowment that are specifically designated
993as contributions to the corpus.
994     (c)  "Earnings" means any money in the endowment in excess
995of the corpus, including any income generated by investments,
996any increase in the market value of investments net of decreases
997in market value, and any appropriations, grants, gifts, or
998donations to the endowment not specifically designated as
999contributions to the corpus.
1000     (d)  "Endowment" means the Florida Hurricane Damage
1001Prevention Endowment created by this section.
1002     (e)  "Program administrator" means the Department of
1003Financial Services.
1004     (3)  ADMINISTRATION.--
1005     (a)  The board shall invest endowment assets as provided in
1006this section.
1007     (b)  The board may invest and reinvest funds of the
1008endowment in accordance with s. 215.47 and consistent with board
1009policy.
1010     (c)  The investment objective shall be long-term
1011preservation of the value of the corpus and a specified regular
1012annual cash outflow for appropriation, as nonrecurring revenue,
1013for the purposes specified in subsection (4).
1014     (d)  In accordance with s. 215.44, the board shall report
1015on the financial status of the endowment in its annual
1016investment report to the Legislature.
1017     (e)  Costs and fees of the board for investment services
1018shall be deducted from the assets of the endowment.
1019     (4)  FINANCIAL INCENTIVES FOR RESIDENTIAL HURRICANE DAMAGE
1020PREVENTION ACTIVITIES.--
1021     (a)  Not less than 80 percent of the net earnings of the
1022endowment shall be expended for financial incentives to
1023residential property owners as described in paragraph (b), and
1024no more than the remainder of the net earnings of the endowment
1025shall be expended for matching fund grants to local governments
1026and nonprofit entities for projects that will reduce hurricane
1027damage to residential properties as described in paragraph (c).
1028Any funds authorized for expenditure but not expended for these
1029purposes shall be returned to the endowment.
1030     (b)1.  The program administrator, by rule, shall establish
1031a request for a proposal process to annually solicit proposals
1032from lending institutions under which the lending institution
1033will provide interest-free loans to homestead property owners to
1034pay for inspections of homestead property to determine what
1035mitigation measures are needed and for improvements to existing
1036residential properties intended to reduce the homestead
1037property's vulnerability to hurricane damage, in exchange for
1038funding from the endowment.
1039     2.  In order to qualify for funding under this paragraph,
1040an interest-free loan program must include an inspection of
1041homestead property to determine what mitigation measures are
1042needed, a means for verifying that the improvements to be paid
1043for from loan proceeds have been demonstrated to reduce a
1044homestead property's vulnerability to hurricane damage, and a
1045means for verifying that the proceeds were actually spent on
1046such improvements. The program must include a method for
1047awarding loans according to the following priorities:
1048     a.  The highest priority must be given to single-family
1049owner-occupied homestead dwellings, insured at $500,000 or less,
1050located in the areas designated as high-risk areas for purposes
1051of coverage by the Citizens Property Insurance Corporation.
1052     b.  The next highest priority must be given to single-
1053family owner-occupied homestead dwellings, insured at $500,000
1054or less, covered by the Citizens Property Insurance Corporation,
1055wherever located.
1056     c.  The next highest priority must be given to single-
1057family owner-occupied homestead dwellings, insured at $500,000
1058or less, that are more than 40 years old.
1059     d.  The next highest priority must be given to all other
1060single-family owner-occupied homestead dwellings insured at
1061$500,000 or less.
1062     3.  The program administrator shall evaluate proposals
1063based on the following factors:
1064     a.  The degree to which the proposal meets the requirements
1065of subparagraph 2.
1066     b.  The lending institution's plan for marketing the loans.
1067     c.  The anticipated number of loans to be granted relative
1068to the total amount of funding sought.
1069     4.  The program administrator shall annually solicit
1070proposals from local governments and nonprofit entities for
1071projects that will reduce hurricane damage to homestead
1072properties. The program administrator may provide up to 50
1073percent of the funding for such projects. The projects may
1074include educational programs, repair services, property
1075inspections, and hurricane vulnerability analyses and such other
1076projects as the program administrator determines to be
1077consistent with the purposes of this section.
1078     (5)  ADVISORY COUNCIL.--There is created an advisory
1079council to provide advice and assistance to the program
1080administrator with regard to its administration of the
1081endowment. The advisory council shall consist of:
1082     (a)  A representative of lending institutions, selected by
1083the Financial Services Commission from a list of at least three
1084persons recommended by the Florida Bankers Association.
1085     (b)  A representative of residential property insurers,
1086selected by the Financial Services Commission from a list of at
1087least three persons recommended by the Florida Insurance
1088Council.
1089     (c)  A representative of home builders, selected by the
1090Financial Services Commission from a list of at least three
1091persons recommended by the Florida Home Builders Association.
1092     (d)  A faculty member of a state university selected by the
1093Financial Services Commission who is an expert in hurricane-
1094resistant construction methodologies and materials.
1095     (e)  Two members of the House of Representatives selected
1096by the Speaker of the House of Representatives.
1097     (f)  Two members of the Senate selected by the President of
1098the Senate.
1099     (g)  The senior officer of the Florida Hurricane
1100Catastrophe Fund.
1101     (h)  The executive director of Citizens Property Insurance
1102Corporation.
1103     (i)  The director of the Division of Emergency Management
1104of the Department of Community Affairs.
1105
1106Members appointed under paragraphs (a)-(d) shall serve at the
1107pleasure of the Financial Services Commission. Members appointed
1108under paragraphs (e) and (f) shall serve at the pleasure of the
1109appointing officer. All other members shall serve ex officio.
1110Members of the advisory council shall serve without compensation
1111but may receive reimbursement as provided in s. 112.061 for per
1112diem and travel expenses incurred in the performance of their
1113official duties.
1114     Section 4.  Section 215.5586, Florida Statutes, is created
1115to read:
1116     215.5586  Florida Comprehensive Hurricane Damage Mitigation
1117Program.--There is established within the Department of
1118Financial Services the Florida Comprehensive Hurricane Damage
1119Mitigation Program. The program shall be administered by an
1120individual with prior executive experience in the private sector
1121in the areas of insurance, business, or construction. The
1122program shall develop and implement a comprehensive and
1123coordinated approach for hurricane damage mitigation that shall
1124include the following:
1125     (1)  WIND CERTIFICATION AND HURRICANE MITIGATION
1126INSPECTIONS.--
1127     (a)  Free home-retrofit inspections of site-built,
1128residential property, including single-family, two-family,
1129three-family, or four-family residential units, shall be offered
1130to determine what mitigation measures are needed and what
1131improvements to existing residential properties are needed to
1132reduce the property's vulnerability to hurricane damage. The
1133Department of Financial Services shall establish a request for
1134proposals to solicit proposals from wind certification entities
1135to provide at no cost to homeowners wind certification and
1136hurricane mitigation inspections. The inspections provided to
1137homeowners, at a minimum, must include:
1138     1.  A home inspection and report that summarizes the
1139results and identifies corrective actions a homeowner may take
1140to mitigate hurricane damage.
1141     2.  A range of cost estimates regarding the mitigation
1142features.
1143     3.  Insurer-specific information regarding premium
1144discounts correlated to recommended mitigation features
1145identified by the inspection.
1146     4.  A hurricane resistance rating scale specifying the
1147home's current as well as projected wind resistance
1148capabilities.
1149     (b)  To qualify for selection by the department as a
1150provider of wind certification and hurricane mitigation
1151inspections, the entity shall, at a minimum:
1152     1.  Use wind certification and hurricane mitigation
1153inspectors who:
1154     a.  Have prior experience in residential construction or
1155inspection and have received specialized training in hurricane
1156mitigation procedures.
1157     b.  Have undergone drug testing and background checks.
1158     c.  Have been certified, in a manner satisfactory to the
1159department, to conduct the inspections.
1160     2.  Provide a quality assurance program including a
1161reinspection component.
1162     (2)  GRANTS.--Financial grants shall be used to encourage
1163single-family, site-built, owner-occupied, residential property
1164owners to retrofit their properties to make them less vulnerable
1165to hurricane damage.
1166     (a)  To be eligible for a grant, a residential property
1167must:
1168     1.  Have been granted a homestead exemption under chapter
1169196.
1170     2.  Be a dwelling with an insured value of $500,000 or
1171less.
1172     3.  Have undergone an acceptable wind certification and
1173hurricane mitigation inspection.
1174
1175A residential property which is part of a multi-family
1176residential unit may receive a grant only if all homeowners
1177participate and the total number of units does not exceed four.
1178     (b)  All grants must be matched on a dollar-for-dollar
1179basis for a total of $10,000 for the mitigation project with the
1180state's contribution not to exceed $5,000.
1181     (c)  The program shall create a process in which mitigation
1182contractors agree to participate and seek reimbursement from the
1183state and homeowners select from a list of participating
1184contractors. All mitigation must be based upon the securing of
1185all required local permits and inspections. Mitigation projects
1186are subject to random reinspection of up to at least 10 percent
1187of all projects.
1188     (d)  Matching fund grants shall also be made available to
1189local governments and nonprofit entities for projects that will
1190reduce hurricane damage to single-family, site-built, owner-
1191occupied, residential property.
1192     (3)  LOANS.--Financial incentives shall be provided as
1193authorized by s. 215.558.
1194     (4)  EDUCATION AND CONSUMER AWARENESS.--Multimedia public
1195education, awareness, and advertising efforts designed to
1196specifically address mitigation techniques shall be employed, as
1197well as a component to support ongoing consumer resources and
1198referral services.
1199     (5)  ADVISORY COUNCIL.--There is created an advisory
1200council to provide advice and assistance to the program
1201administrator with regard to his or her administration of the
1202program. The advisory council shall consist of:
1203     (a)  A representative of lending institutions, selected by
1204the Financial Services Commission from a list of at least three
1205persons recommended by the Florida Bankers Association.
1206     (b)  A representative of residential property insurers,
1207selected by the Financial Services Commission from a list of at
1208least three persons recommended by the Florida Insurance
1209Council.
1210     (c)  A representative of home builders, selected by the
1211Financial Services Commission from a list of at least three
1212persons recommended by the Florida Home Builders Association.
1213     (d)  A faculty member of a state university, selected by
1214the Financial Services Commission, who is an expert in
1215hurricane-resistant construction methodologies and materials.
1216     (e)  Two members of the House of Representatives, selected
1217by the Speaker of the House of Representatives.
1218     (f)  Two members of the Senate, selected by the President
1219of the Senate.
1220     (g)  The Chief Executive Officer of the Federal Alliance
1221for Safe Homes, Inc., or his or her designee.
1222     (h)  The senior officer of the Florida Hurricane
1223Catastrophe Fund.
1224     (i)  The executive director of Citizens Property Insurance
1225Corporation.
1226     (j)  The director of the Division of Emergency Management
1227of the Department of Community Affairs.
1228
1229Members appointed under paragraphs (a)-(d) shall serve at the
1230pleasure of the Financial Services Commission. Members appointed
1231under paragraphs (e) and (f) shall serve at the pleasure of the
1232appointing officer. All other members shall serve voting ex
1233officio. Members of the advisory council shall serve without
1234compensation but may receive reimbursement as provided in s.
1235112.061 for per diem and travel expenses incurred in the
1236performance of their official duties.
1237     (6)  RULES.--The Department of Financial Services shall
1238adopt rules pursuant to ss. 120.536(1) and 120.54 governing the
1239Florida Comprehensive Hurricane Damage Mitigation Program.
1240     Section 5.  Section 215.559, Florida Statutes, is amended
1241to read:
1242     215.559  Hurricane Loss Mitigation Program.--
1243     (1)  There is created a Hurricane Loss Mitigation Program.
1244The Legislature shall annually appropriate $10 million of the
1245moneys authorized for appropriation under s. 215.555(7)(c) from
1246the Florida Hurricane Catastrophe Fund to the Department of
1247Community Affairs for the purposes set forth in this section.
1248     (2)(a)  Seven million dollars in funds provided in
1249subsection (1) shall be used for programs to improve the wind
1250resistance of residences and mobile homes, including loans,
1251subsidies, grants, demonstration projects, and direct
1252assistance; cooperative programs with local governments and the
1253Federal Government; and other efforts to prevent or reduce
1254losses or reduce the cost of rebuilding after a disaster.
1255     (b)  Three million dollars in funds provided in subsection
1256(1) shall be used to retrofit existing facilities used as public
1257hurricane shelters. The department must prioritize the use of
1258these funds for projects included in the September 1, 2000,
1259version of the Shelter Retrofit Report prepared in accordance
1260with s. 252.385(3), and each annual report thereafter. The
1261department must give funding priority to projects in regional
1262planning council regions that have shelter deficits and to
1263projects that maximize use of state funds.
1264     (3)  By the 2006-2007 fiscal year, the Department of
1265Community Affairs shall develop a low-interest loan program for
1266homeowners and mobile home owners to retrofit their homes with
1267fixtures or apply construction techniques that have been
1268demonstrated to reduce the amount of damage or loss due to a
1269hurricane. Funding for the program shall be used to subsidize or
1270guaranty private-sector loans for this purpose to qualified
1271homeowners by financial institutions chartered by the state or
1272Federal Government. The department may enter into contracts with
1273financial institutions for this purpose. The department shall
1274establish criteria for determining eligibility for the loans and
1275selecting recipients, standards for retrofitting homes or mobile
1276homes, limitations on loan subsidies and loan guaranties, and
1277other terms and conditions of the program, which must be
1278specified in the department's report to the Legislature on
1279January 1, 2006, required by subsection (8). For the 2005-2006
1280fiscal year, the Department of Community Affairs may use up to
1281$1 million of the funds appropriated pursuant to paragraph
1282(2)(a) to begin the low-interest loan program as a pilot project
1283in one or more counties. The Department of Financial Services,
1284the Office of Financial Regulation, the Florida Housing Finance
1285Corporation, and the Office of Tourism, Trade, and Economic
1286Development shall assist the Department of Community Affairs in
1287establishing the program and pilot project. The department may
1288use up to 2.5 percent of the funds appropriated in any given
1289fiscal year for administering the loan program. The department
1290may adopt rules to implement the program.
1291     (3)(a)(4)  Forty percent of the total appropriation in
1292paragraph (2)(a) shall be used to inspect and improve tie-downs
1293for mobile homes. Within 30 days after the effective date of
1294that appropriation, the department shall contract with a public
1295higher educational institution in this state which has previous
1296experience in administering the programs set forth in this
1297subsection to serve as the administrative entity and fiscal
1298agent pursuant to s. 216.346 for the purpose of administering
1299the programs set forth in this subsection in accordance with
1300established policy and procedures. The administrative entity
1301working with the advisory council set up under subsection (6)
1302shall develop a list of mobile home parks and counties that may
1303be eligible to participate in the tie-down program.
1304     (b)1.  There is created the Manufactured Housing and Mobile
1305Home Hurricane Mitigation Program. The program shall require the
1306mitigation of damage to homes for the areas of concern raised by
1307the Department of Highway Safety and Motor Vehicles in the 2004-
13082005 Hurricane Reports on the effects of the 2004 and 2005
1309hurricanes on manufactured and mobile homes in this state. The
1310mitigation shall include, but not be limited to, problems
1311associated with weakened trusses, studs, and other structural
1312components, site-built additions, or tie-down systems and may
1313also address any other issues deemed appropriate by the
1314Department of Community Affairs upon consultation with the
1315Tallahassee Community College, the Federation of Manufactured
1316Home Owners of Florida, Inc., the Florida Manufactured Housing
1317Association, and the Department of Highway Safety and Motor
1318Vehicles. The program may include an education and outreach
1319component to ensure that owners of manufactured and mobile homes
1320are aware of the benefits of participation.
1321     2.  The program shall include the offering of a matching
1322grant to owners of manufactured and mobile homes manufactured
1323after 1993 only. Homeowners accepted for the program shall be
1324eligible to qualify for a $5,000 dollar-for-dollar matching
1325grant in which the homeowner may receive up to $2,500 in state
1326moneys. The moneys appropriated for this program shall be
1327distributed directly to the Department of Community Affairs for
1328the uses set forth under this paragraph.
1329     3.  Upon evidence of completion of the program, the
1330Citizens Property Insurance Corporation shall grant, on a pro
1331rata basis, actuarially reasonable discounts, credits, or other
1332rate differentials or appropriate reductions in deductibles for
1333the properties of owners of manufactured homes or mobile homes
1334on which fixtures or construction techniques that have been
1335demonstrated to reduce the amount of loss in a windstorm have
1336been installed or implemented. The discount on the premium shall
1337be applied to subsequent renewal premium amounts. Premiums of
1338the Citizens Property Insurance Corporation shall reflect the
1339location of the home and the fact that the home has been
1340installed in compliance with building codes adopted after
1341Hurricane Andrew.
1342     4.  On or before January 1 of each year, the Department of
1343Community Affairs shall provide a report of activities under
1344this subsection to the Governor, the President of the Senate,
1345and the Speaker of the House of Representatives. The report
1346shall set forth the number of manufactured homes and mobile
1347homes that have taken advantage of the program, the types of
1348enhancements and improvements made to the manufactured homes or
1349mobile homes and attachments to such homes, and whether there
1350has been an increase of availability of insurance products to
1351owners of manufactured homes or mobile homes.
1352     (4)(5)  Of moneys provided to the Department of Community
1353Affairs in paragraph (2)(a), 10 percent shall be allocated to a
1354Type I Center within the State University System dedicated to
1355hurricane research. The Type I Center shall develop a
1356preliminary work plan approved by the advisory council set forth
1357in subsection (6) to eliminate the state and local barriers to
1358upgrading existing mobile homes and communities, research and
1359develop a program for the recycling of existing older mobile
1360homes, and support programs of research and development relating
1361to hurricane loss reduction devices and techniques for site-
1362built residences. The State University System also shall consult
1363with the Department of Community Affairs and assist the
1364department with the report required under subsection (8).
1365     (5)(6)  The Department of Community Affairs shall develop
1366the programs set forth in this section in consultation with an
1367advisory council consisting of a representative designated by
1368the Chief Financial Officer, a representative designated by the
1369Florida Home Builders Association, a representative designated
1370by the Florida Insurance Council, a representative designated by
1371the Federation of Manufactured Home Owners, a representative
1372designated by the Florida Association of Counties, and a
1373representative designated by the Florida Manufactured Housing
1374Association.
1375     (6)(7)  Moneys provided to the Department of Community
1376Affairs under this section are intended to supplement other
1377funding sources of the Department of Community Affairs and may
1378not supplant other funding sources of the Department of
1379Community Affairs.
1380     (7)(8)  On January 1st of each year, the Department of
1381Community Affairs shall provide a full report and accounting of
1382activities under this section and an evaluation of such
1383activities to the Speaker of the House of Representatives, the
1384President of the Senate, and the Majority and Minority Leaders
1385of the House of Representatives and the Senate.
1386     (8)(9)  This section is repealed June 30, 2011.
1387     Section 6.  Subsection (10) of section 624.424, Florida
1388Statutes, is amended to read:
1389     624.424  Annual statement and other information.--
1390     (10)  Each insurer or insurer group doing business in this
1391state shall file on a quarterly basis in conjunction with
1392financial reports required by paragraph (1)(a) a supplemental
1393report on an individual and group basis on a form prescribed by
1394the commission with information on personal lines and commercial
1395lines residential property insurance policies in this state. The
1396supplemental report shall include separate information for
1397personal lines property policies and for commercial lines
1398property policies and totals for each item specified, including
1399premiums written for each of the property lines of business as
1400described in ss. 215.555(2)(f)(c) and 627.351(6)(a). The report
1401shall include the following information for each county on a
1402monthly basis:
1403     (a)  Total number of policies in force at the end of each
1404month.
1405     (b)  Total number of policies canceled.
1406     (c)  Total number of policies nonrenewed.
1407     (d)  Number of policies canceled due to hurricane risk.
1408     (e)  Number of policies nonrenewed due to hurricane risk.
1409     (f)  Number of new policies written.
1410     (g)  Total dollar value of structure exposure under
1411policies that include wind coverage.
1412     (h)  Number of policies that exclude wind coverage.
1413     Section 7.  Subsection (3) of section 624.5091, Florida
1414Statutes, is amended to read:
1415     624.5091  Retaliatory provision, insurers.--
1416     (3)  This section does not apply as to personal income
1417taxes, nor as to sales or use taxes, nor as to ad valorem taxes
1418on real or personal property, nor as to reimbursement premiums
1419paid to the Florida Hurricane Insurance Catastrophe Fund, nor as
1420to emergency assessments paid to the Florida Hurricane Insurance
1421Catastrophe Fund, nor as to special purpose obligations or
1422assessments imposed in connection with particular kinds of
1423insurance other than property insurance, except that deductions,
1424from premium taxes or other taxes otherwise payable, allowed on
1425account of real estate or personal property taxes paid shall be
1426taken into consideration by the department in determining the
1427propriety and extent of retaliatory action under this section.
1428     Section 8.  Subsection (5) of section 627.062, Florida
1429Statutes, is amended to read:
1430     627.062  Rate standards.--
1431     (5)  With respect to a rate filing involving coverage of
1432the type for which the insurer is required to pay a
1433reimbursement premium to the Florida Hurricane Insurance
1434Catastrophe Fund, the insurer may fully recoup in its property
1435insurance premiums any reimbursement premiums paid to the
1436Florida Hurricane Insurance Catastrophe Fund, together with
1437reasonable costs of other reinsurance, but may not recoup
1438reinsurance costs that duplicate coverage provided by the
1439Florida Hurricane Insurance Catastrophe Fund. An insurer may not
1440recoup more than 1 year of reimbursement premium at a time. Any
1441under-recoupment from the prior year may be added to the
1442following year's reimbursement premium and any over-recoupment
1443shall be subtracted from the following year's reimbursement
1444premium.
1445     Section 9.  Paragraph (c) of subsection (1), paragraphs (b)
1446and (f) of subsection (2), and paragraph (b) of subsection (3)
1447of section 627.0628, Florida Statutes, are amended to read:
1448     627.0628  Florida Commission on Hurricane Loss Projection
1449Methodology; public records exemption; public meetings
1450exemption.--
1451     (1)  LEGISLATIVE FINDINGS AND INTENT.--
1452     (c)  It is the intent of the Legislature to create the
1453Florida Commission on Hurricane Loss Projection Methodology as a
1454panel of experts to provide the most actuarially sophisticated
1455guidelines and standards for projection of hurricane losses
1456possible, given the current state of actuarial science. It is
1457the further intent of the Legislature that such standards and
1458guidelines must be used by the State Board of Administration in
1459developing reimbursement premium rates for the Florida Hurricane
1460Insurance Catastrophe Fund, and, subject to paragraph (3)(c),
1461may be used by insurers in rate filings under s. 627.062 unless
1462the way in which such standards and guidelines were applied by
1463the insurer was erroneous, as shown by a preponderance of the
1464evidence.
1465     (2)  COMMISSION CREATED.--
1466     (b)  The commission shall consist of the following 11
1467members:
1468     1.  The insurance consumer advocate.
1469     2.  The senior employee of the State Board of
1470Administration responsible for operations of the Florida
1471Hurricane Insurance Catastrophe Fund.
1472     3.  The Executive Director of the Citizens Property
1473Insurance Corporation.
1474     4.  The Director of the Division of Emergency Management of
1475the Department of Community Affairs.
1476     5.  The actuary member of the Florida Hurricane Insurance
1477Catastrophe Fund Advisory Council.
1478     6.  An employee of the office who is an actuary responsible
1479for property insurance rate filings and who is appointed by the
1480director of the office.
1481     7.  Five members appointed by the Chief Financial Officer,
1482as follows:
1483     a.  An actuary who is employed full time by a property and
1484casualty insurer which was responsible for at least 1 percent of
1485the aggregate statewide direct written premium for homeowner's
1486insurance in the calendar year preceding the member's
1487appointment to the commission.
1488     b.  An expert in insurance finance who is a full-time
1489member of the faculty of the State University System and who has
1490a background in actuarial science.
1491     c.  An expert in statistics who is a full-time member of
1492the faculty of the State University System and who has a
1493background in insurance.
1494     d.  An expert in computer system design who is a full-time
1495member of the faculty of the State University System.
1496     e.  An expert in meteorology who is a full-time member of
1497the faculty of the State University System and who specializes
1498in hurricanes.
1499     (f)  The State Board of Administration shall, as a cost of
1500administration of the Florida Hurricane Insurance Catastrophe
1501Fund, provide for travel, expenses, and staff support for the
1502commission.
1503     (3)  ADOPTION AND EFFECT OF STANDARDS AND GUIDELINES.--
1504     (b)  In establishing reimbursement premiums for the Florida
1505Hurricane Insurance Catastrophe Fund, the State Board of
1506Administration must, to the extent feasible, employ actuarial
1507methods, principles, standards, models, or output ranges found
1508by the commission to be accurate or reliable.
1509     Section 10.  Subsection (10) of section 627.0629, Florida
1510Statutes, is amended to read:
1511     627.0629  Residential property insurance; rate filings.--
1512     (10)  A property insurance rate filing that includes any
1513adjustments related to premiums paid to the Florida Hurricane
1514Insurance Catastrophe Fund must include a complete calculation
1515of the insurer's catastrophe load, and the information in the
1516filing may not be limited solely to recovery of moneys paid to
1517the fund.
1518     Section 11.  Paragraph (b) of subsection (2) and paragraphs
1519(b), (c), (k), and (l) of subsection (6) of section 627.351,
1520Florida Statutes, are amended to read:
1521     627.351  Insurance risk apportionment plans.--
1522     (2)  WINDSTORM INSURANCE RISK APPORTIONMENT.--
1523     (b)  The department shall require all insurers holding a
1524certificate of authority to transact property insurance on a
1525direct basis in this state, other than joint underwriting
1526associations and other entities formed pursuant to this section,
1527to provide windstorm coverage to applicants from areas
1528determined to be eligible pursuant to paragraph (c) who in good
1529faith are entitled to, but are unable to procure, such coverage
1530through ordinary means; or it shall adopt a reasonable plan or
1531plans for the equitable apportionment or sharing among such
1532insurers of windstorm coverage, which may include formation of
1533an association for this purpose. As used in this subsection, the
1534term "property insurance" means insurance on real or personal
1535property, as defined in s. 624.604, including insurance for
1536fire, industrial fire, allied lines, farmowners multiperil,
1537homeowners' multiperil, commercial multiperil, and mobile homes,
1538and including liability coverages on all such insurance, but
1539excluding inland marine as defined in s. 624.607(3) and
1540excluding vehicle insurance as defined in s. 624.605(1)(a) other
1541than insurance on mobile homes used as permanent dwellings. The
1542department shall adopt rules that provide a formula for the
1543recovery and repayment of any deferred assessments.
1544     1.  For the purpose of this section, properties eligible
1545for such windstorm coverage are defined as dwellings, buildings,
1546and other structures, including mobile homes which are used as
1547dwellings and which are tied down in compliance with mobile home
1548tie-down requirements prescribed by the Department of Highway
1549Safety and Motor Vehicles pursuant to s. 320.8325, and the
1550contents of all such properties. An applicant or policyholder is
1551eligible for coverage only if an offer of coverage cannot be
1552obtained by or for the applicant or policyholder from an
1553admitted insurer at approved rates.
1554     2.a.(I)  All insurers required to be members of such
1555association shall participate in its writings, expenses, and
1556losses. Surplus of the association shall be retained for the
1557payment of claims and shall not be distributed to the member
1558insurers. Such participation by member insurers shall be in the
1559proportion that the net direct premiums of each member insurer
1560written for property insurance in this state during the
1561preceding calendar year bear to the aggregate net direct
1562premiums for property insurance of all member insurers, as
1563reduced by any credits for voluntary writings, in this state
1564during the preceding calendar year. For the purposes of this
1565subsection, the term "net direct premiums" means direct written
1566premiums for property insurance, reduced by premium for
1567liability coverage and for the following if included in allied
1568lines: rain and hail on growing crops; livestock; association
1569direct premiums booked; National Flood Insurance Program direct
1570premiums; and similar deductions specifically authorized by the
1571plan of operation and approved by the department. A member's
1572participation shall begin on the first day of the calendar year
1573following the year in which it is issued a certificate of
1574authority to transact property insurance in the state and shall
1575terminate 1 year after the end of the calendar year during which
1576it no longer holds a certificate of authority to transact
1577property insurance in the state. The commissioner, after review
1578of annual statements, other reports, and any other statistics
1579that the commissioner deems necessary, shall certify to the
1580association the aggregate direct premiums written for property
1581insurance in this state by all member insurers.
1582     (II)  Effective July 1, 2002, the association shall operate
1583subject to the supervision and approval of a board of governors
1584who are the same individuals that have been appointed by the
1585Treasurer to serve on the board of governors of the Citizens
1586Property Insurance Corporation.
1587     (III)  The plan of operation shall provide a formula
1588whereby a company voluntarily providing windstorm coverage in
1589affected areas will be relieved wholly or partially from
1590apportionment of a regular assessment pursuant to sub-sub-
1591subparagraph d.(I) or sub-sub-subparagraph d.(II).
1592     (IV)  A company which is a member of a group of companies
1593under common management may elect to have its credits applied on
1594a group basis, and any company or group may elect to have its
1595credits applied to any other company or group.
1596     (V)  There shall be no credits or relief from apportionment
1597to a company for emergency assessments collected from its
1598policyholders under sub-sub-subparagraph d.(III).
1599     (VI)  The plan of operation may also provide for the award
1600of credits, for a period not to exceed 3 years, from a regular
1601assessment pursuant to sub-sub-subparagraph d.(I) or sub-sub-
1602subparagraph d.(II) as an incentive for taking policies out of
1603the Residential Property and Casualty Joint Underwriting
1604Association. In order to qualify for the exemption under this
1605sub-sub-subparagraph, the take-out plan must provide that at
1606least 40 percent of the policies removed from the Residential
1607Property and Casualty Joint Underwriting Association cover risks
1608located in Dade, Broward, and Palm Beach Counties or at least 30
1609percent of the policies so removed cover risks located in Dade,
1610Broward, and Palm Beach Counties and an additional 50 percent of
1611the policies so removed cover risks located in other coastal
1612counties, and must also provide that no more than 15 percent of
1613the policies so removed may exclude windstorm coverage. With the
1614approval of the department, the association may waive these
1615geographic criteria for a take-out plan that removes at least
1616the lesser of 100,000 Residential Property and Casualty Joint
1617Underwriting Association policies or 15 percent of the total
1618number of Residential Property and Casualty Joint Underwriting
1619Association policies, provided the governing board of the
1620Residential Property and Casualty Joint Underwriting Association
1621certifies that the take-out plan will materially reduce the
1622Residential Property and Casualty Joint Underwriting
1623Association's 100-year probable maximum loss from hurricanes.
1624With the approval of the department, the board may extend such
1625credits for an additional year if the insurer guarantees an
1626additional year of renewability for all policies removed from
1627the Residential Property and Casualty Joint Underwriting
1628Association, or for 2 additional years if the insurer guarantees
16292 additional years of renewability for all policies removed from
1630the Residential Property and Casualty Joint Underwriting
1631Association.
1632     b.  Assessments to pay deficits in the association under
1633this subparagraph shall be included as an appropriate factor in
1634the making of rates as provided in s. 627.3512.
1635     c.  The Legislature finds that the potential for unlimited
1636deficit assessments under this subparagraph may induce insurers
1637to attempt to reduce their writings in the voluntary market, and
1638that such actions would worsen the availability problems that
1639the association was created to remedy. It is the intent of the
1640Legislature that insurers remain fully responsible for paying
1641regular assessments and collecting emergency assessments for any
1642deficits of the association; however, it is also the intent of
1643the Legislature to provide a means by which assessment
1644liabilities may be amortized over a period of years.
1645     d.(I)  When the deficit incurred in a particular calendar
1646year is 10 percent or less of the aggregate statewide direct
1647written premium for property insurance for the prior calendar
1648year for all member insurers, the association shall levy an
1649assessment on member insurers in an amount equal to the deficit.
1650     (II)  When the deficit incurred in a particular calendar
1651year exceeds 10 percent of the aggregate statewide direct
1652written premium for property insurance for the prior calendar
1653year for all member insurers, the association shall levy an
1654assessment on member insurers in an amount equal to the greater
1655of 10 percent of the deficit or 10 percent of the aggregate
1656statewide direct written premium for property insurance for the
1657prior calendar year for member insurers. Any remaining deficit
1658shall be recovered through emergency assessments under sub-sub-
1659subparagraph (III).
1660     (III)  Upon a determination by the board of directors that
1661a deficit exceeds the amount that will be recovered through
1662regular assessments on member insurers, pursuant to sub-sub-
1663subparagraph (I) or sub-sub-subparagraph (II), the board shall
1664levy, after verification by the department, emergency
1665assessments to be collected by member insurers and by
1666underwriting associations created pursuant to this section which
1667write property insurance, upon issuance or renewal of property
1668insurance policies other than National Flood Insurance policies
1669in the year or years following levy of the regular assessments.
1670The amount of the emergency assessment collected in a particular
1671year shall be a uniform percentage of that year's direct written
1672premium for property insurance for all member insurers and
1673underwriting associations, excluding National Flood Insurance
1674policy premiums, as annually determined by the board and
1675verified by the department. The department shall verify the
1676arithmetic calculations involved in the board's determination
1677within 30 days after receipt of the information on which the
1678determination was based. Notwithstanding any other provision of
1679law, each member insurer and each underwriting association
1680created pursuant to this section shall collect emergency
1681assessments from its policyholders without such obligation being
1682affected by any credit, limitation, exemption, or deferment. The
1683emergency assessments so collected shall be transferred directly
1684to the association on a periodic basis as determined by the
1685association. The aggregate amount of emergency assessments
1686levied under this sub-sub-subparagraph in any calendar year may
1687not exceed the greater of 10 percent of the amount needed to
1688cover the original deficit, plus interest, fees, commissions,
1689required reserves, and other costs associated with financing of
1690the original deficit, or 10 percent of the aggregate statewide
1691direct written premium for property insurance written by member
1692insurers and underwriting associations for the prior year, plus
1693interest, fees, commissions, required reserves, and other costs
1694associated with financing the original deficit. The board may
1695pledge the proceeds of the emergency assessments under this sub-
1696sub-subparagraph as the source of revenue for bonds, to retire
1697any other debt incurred as a result of the deficit or events
1698giving rise to the deficit, or in any other way that the board
1699determines will efficiently recover the deficit. The emergency
1700assessments under this sub-sub-subparagraph shall continue as
1701long as any bonds issued or other indebtedness incurred with
1702respect to a deficit for which the assessment was imposed remain
1703outstanding, unless adequate provision has been made for the
1704payment of such bonds or other indebtedness pursuant to the
1705document governing such bonds or other indebtedness. Emergency
1706assessments collected under this sub-sub-subparagraph are not
1707part of an insurer's rates, are not premium, and are not subject
1708to premium tax, fees, or commissions; however, failure to pay
1709the emergency assessment shall be treated as failure to pay
1710premium.
1711     (IV)  Each member insurer's share of the total regular
1712assessments under sub-sub-subparagraph (I) or sub-sub-
1713subparagraph (II) shall be in the proportion that the insurer's
1714net direct premium for property insurance in this state, for the
1715year preceding the assessment bears to the aggregate statewide
1716net direct premium for property insurance of all member
1717insurers, as reduced by any credits for voluntary writings for
1718that year.
1719     (V)  If regular deficit assessments are made under sub-sub-
1720subparagraph (I) or sub-sub-subparagraph (II), or by the
1721Residential Property and Casualty Joint Underwriting Association
1722under sub-subparagraph (6)(b)3.a. or sub-subparagraph
1723(6)(b)3.b., the association shall levy upon the association's
1724policyholders, as part of its next rate filing, or by a separate
1725rate filing solely for this purpose, a market equalization
1726surcharge in a percentage equal to the total amount of such
1727regular assessments divided by the aggregate statewide direct
1728written premium for property insurance for member insurers for
1729the prior calendar year. Market equalization surcharges under
1730this sub-sub-subparagraph are not considered premium and are not
1731subject to commissions, fees, or premium taxes; however, failure
1732to pay a market equalization surcharge shall be treated as
1733failure to pay premium.
1734     e.  The governing body of any unit of local government, any
1735residents of which are insured under the plan, may issue bonds
1736as defined in s. 125.013 or s. 166.101 to fund an assistance
1737program, in conjunction with the association, for the purpose of
1738defraying deficits of the association. In order to avoid
1739needless and indiscriminate proliferation, duplication, and
1740fragmentation of such assistance programs, any unit of local
1741government, any residents of which are insured by the
1742association, may provide for the payment of losses, regardless
1743of whether or not the losses occurred within or outside of the
1744territorial jurisdiction of the local government. Revenue bonds
1745may not be issued until validated pursuant to chapter 75, unless
1746a state of emergency is declared by executive order or
1747proclamation of the Governor pursuant to s. 252.36 making such
1748findings as are necessary to determine that it is in the best
1749interests of, and necessary for, the protection of the public
1750health, safety, and general welfare of residents of this state
1751and the protection and preservation of the economic stability of
1752insurers operating in this state, and declaring it an essential
1753public purpose to permit certain municipalities or counties to
1754issue bonds as will provide relief to claimants and
1755policyholders of the association and insurers responsible for
1756apportionment of plan losses. Any such unit of local government
1757may enter into such contracts with the association and with any
1758other entity created pursuant to this subsection as are
1759necessary to carry out this paragraph. Any bonds issued under
1760this sub-subparagraph shall be payable from and secured by
1761moneys received by the association from assessments under this
1762subparagraph, and assigned and pledged to or on behalf of the
1763unit of local government for the benefit of the holders of such
1764bonds. The funds, credit, property, and taxing power of the
1765state or of the unit of local government shall not be pledged
1766for the payment of such bonds. If any of the bonds remain unsold
176760 days after issuance, the department shall require all
1768insurers subject to assessment to purchase the bonds, which
1769shall be treated as admitted assets; each insurer shall be
1770required to purchase that percentage of the unsold portion of
1771the bond issue that equals the insurer's relative share of
1772assessment liability under this subsection. An insurer shall not
1773be required to purchase the bonds to the extent that the
1774department determines that the purchase would endanger or impair
1775the solvency of the insurer. The authority granted by this sub-
1776subparagraph is additional to any bonding authority granted by
1777subparagraph 6.
1778     3.  The plan shall also provide that any member with a
1779surplus as to policyholders of $20 million or less writing 25
1780percent or more of its total countrywide property insurance
1781premiums in this state may petition the department, within the
1782first 90 days of each calendar year, to qualify as a limited
1783apportionment company. The apportionment of such a member
1784company in any calendar year for which it is qualified shall not
1785exceed its gross participation, which shall not be affected by
1786the formula for voluntary writings. In no event shall a limited
1787apportionment company be required to participate in any
1788apportionment of losses pursuant to sub-sub-subparagraph 2.d.(I)
1789or sub-sub-subparagraph 2.d.(II) in the aggregate which exceeds
1790$50 million after payment of available plan funds in any
1791calendar year. However, a limited apportionment company shall
1792collect from its policyholders any emergency assessment imposed
1793under sub-sub-subparagraph 2.d.(III). The plan shall provide
1794that, if the department determines that any regular assessment
1795will result in an impairment of the surplus of a limited
1796apportionment company, the department may direct that all or
1797part of such assessment be deferred. However, there shall be no
1798limitation or deferment of an emergency assessment to be
1799collected from policyholders under sub-sub-subparagraph
18002.d.(III).
1801     4.  The plan shall provide for the deferment, in whole or
1802in part, of a regular assessment of a member insurer under sub-
1803sub-subparagraph 2.d.(I) or sub-sub-subparagraph 2.d.(II), but
1804not for an emergency assessment collected from policyholders
1805under sub-sub-subparagraph 2.d.(III), if, in the opinion of the
1806commissioner, payment of such regular assessment would endanger
1807or impair the solvency of the member insurer. In the event a
1808regular assessment against a member insurer is deferred in whole
1809or in part, the amount by which such assessment is deferred may
1810be assessed against the other member insurers in a manner
1811consistent with the basis for assessments set forth in sub-sub-
1812subparagraph 2.d.(I) or sub-sub-subparagraph 2.d.(II).
1813     5.a.  The plan of operation may include deductibles and
1814rules for classification of risks and rate modifications
1815consistent with the objective of providing and maintaining funds
1816sufficient to pay catastrophe losses.
1817     b.  The association may require arbitration of a rate
1818filing under s. 627.062(6). It is the intent of the Legislature
1819that the rates for coverage provided by the association be
1820actuarially sound and not competitive with approved rates
1821charged in the admitted voluntary market such that the
1822association functions as a residual market mechanism to provide
1823insurance only when the insurance cannot be procured in the
1824voluntary market. The plan of operation shall provide a
1825mechanism to assure that, beginning no later than January 1,
18261999, the rates charged by the association for each line of
1827business are reflective of approved rates in the voluntary
1828market for hurricane coverage for each line of business in the
1829various areas eligible for association coverage.
1830     c.  The association shall provide for windstorm coverage on
1831residential properties in limits up to $10 million for
1832commercial lines residential risks and up to $1 million for
1833personal lines residential risks. If coverage with the
1834association is sought for a residential risk valued in excess of
1835these limits, coverage shall be available to the risk up to the
1836replacement cost or actual cash value of the property, at the
1837option of the insured, if coverage for the risk cannot be
1838located in the authorized market. The association must accept a
1839commercial lines residential risk with limits above $10 million
1840or a personal lines residential risk with limits above $1
1841million if coverage is not available in the authorized market.
1842The association may write coverage above the limits specified in
1843this subparagraph with or without facultative or other
1844reinsurance coverage, as the association determines appropriate.
1845     d.  The plan of operation must provide objective criteria
1846and procedures, approved by the department, to be uniformly
1847applied for all applicants in determining whether an individual
1848risk is so hazardous as to be uninsurable. In making this
1849determination and in establishing the criteria and procedures,
1850the following shall be considered:
1851     (I)  Whether the likelihood of a loss for the individual
1852risk is substantially higher than for other risks of the same
1853class; and
1854     (II)  Whether the uncertainty associated with the
1855individual risk is such that an appropriate premium cannot be
1856determined.
1857
1858The acceptance or rejection of a risk by the association
1859pursuant to such criteria and procedures must be construed as
1860the private placement of insurance, and the provisions of
1861chapter 120 do not apply.
1862     e.  If the risk accepts an offer of coverage through the
1863market assistance program or through a mechanism established by
1864the association, either before the policy is issued by the
1865association or during the first 30 days of coverage by the
1866association, and the producing agent who submitted the
1867application to the association is not currently appointed by the
1868insurer, the insurer shall:
1869     (I)  Pay to the producing agent of record of the policy,
1870for the first year, an amount that is the greater of the
1871insurer's usual and customary commission for the type of policy
1872written or a fee equal to the usual and customary commission of
1873the association; or
1874     (II)  Offer to allow the producing agent of record of the
1875policy to continue servicing the policy for a period of not less
1876than 1 year and offer to pay the agent the greater of the
1877insurer's or the association's usual and customary commission
1878for the type of policy written.
1879
1880If the producing agent is unwilling or unable to accept
1881appointment, the new insurer shall pay the agent in accordance
1882with sub-sub-subparagraph (I). Subject to the provisions of s.
1883627.3517, the policies issued by the association must provide
1884that if the association obtains an offer from an authorized
1885insurer to cover the risk at its approved rates under either a
1886standard policy including wind coverage or, if consistent with
1887the insurer's underwriting rules as filed with the department, a
1888basic policy including wind coverage, the risk is no longer
1889eligible for coverage through the association. Upon termination
1890of eligibility, the association shall provide written notice to
1891the policyholder and agent of record stating that the
1892association policy must be canceled as of 60 days after the date
1893of the notice because of the offer of coverage from an
1894authorized insurer. Other provisions of the insurance code
1895relating to cancellation and notice of cancellation do not apply
1896to actions under this sub-subparagraph.
1897     f.  When the association enters into a contractual
1898agreement for a take-out plan, the producing agent of record of
1899the association policy is entitled to retain any unearned
1900commission on the policy, and the insurer shall:
1901     (I)  Pay to the producing agent of record of the
1902association policy, for the first year, an amount that is the
1903greater of the insurer's usual and customary commission for the
1904type of policy written or a fee equal to the usual and customary
1905commission of the association; or
1906     (II)  Offer to allow the producing agent of record of the
1907association policy to continue servicing the policy for a period
1908of not less than 1 year and offer to pay the agent the greater
1909of the insurer's or the association's usual and customary
1910commission for the type of policy written.
1911
1912If the producing agent is unwilling or unable to accept
1913appointment, the new insurer shall pay the agent in accordance
1914with sub-sub-subparagraph (I).
1915     6.a.  The plan of operation may authorize the formation of
1916a private nonprofit corporation, a private nonprofit
1917unincorporated association, a partnership, a trust, a limited
1918liability company, or a nonprofit mutual company which may be
1919empowered, among other things, to borrow money by issuing bonds
1920or by incurring other indebtedness and to accumulate reserves or
1921funds to be used for the payment of insured catastrophe losses.
1922The plan may authorize all actions necessary to facilitate the
1923issuance of bonds, including the pledging of assessments or
1924other revenues.
1925     b.  Any entity created under this subsection, or any entity
1926formed for the purposes of this subsection, may sue and be sued,
1927may borrow money; issue bonds, notes, or debt instruments;
1928pledge or sell assessments, market equalization surcharges and
1929other surcharges, rights, premiums, contractual rights,
1930projected recoveries from the Florida Hurricane Insurance
1931Catastrophe Fund, other reinsurance recoverables, and other
1932assets as security for such bonds, notes, or debt instruments;
1933enter into any contracts or agreements necessary or proper to
1934accomplish such borrowings; and take other actions necessary to
1935carry out the purposes of this subsection. The association may
1936issue bonds or incur other indebtedness, or have bonds issued on
1937its behalf by a unit of local government pursuant to
1938subparagraph (6)(g)2., in the absence of a hurricane or other
1939weather-related event, upon a determination by the association
1940subject to approval by the department that such action would
1941enable it to efficiently meet the financial obligations of the
1942association and that such financings are reasonably necessary to
1943effectuate the requirements of this subsection. Any such entity
1944may accumulate reserves and retain surpluses as of the end of
1945any association year to provide for the payment of losses
1946incurred by the association during that year or any future year.
1947The association shall incorporate and continue the plan of
1948operation and articles of agreement in effect on the effective
1949date of chapter 76-96, Laws of Florida, to the extent that it is
1950not inconsistent with chapter 76-96, and as subsequently
1951modified consistent with chapter 76-96. The board of directors
1952and officers currently serving shall continue to serve until
1953their successors are duly qualified as provided under the plan.
1954The assets and obligations of the plan in effect immediately
1955prior to the effective date of chapter 76-96 shall be construed
1956to be the assets and obligations of the successor plan created
1957herein.
1958     c.  In recognition of s. 10, Art. I of the State
1959Constitution, prohibiting the impairment of obligations of
1960contracts, it is the intent of the Legislature that no action be
1961taken whose purpose is to impair any bond indenture or financing
1962agreement or any revenue source committed by contract to such
1963bond or other indebtedness issued or incurred by the association
1964or any other entity created under this subsection.
1965     7.  On such coverage, an agent's remuneration shall be that
1966amount of money payable to the agent by the terms of his or her
1967contract with the company with which the business is placed.
1968However, no commission will be paid on that portion of the
1969premium which is in excess of the standard premium of that
1970company.
1971     8.  Subject to approval by the department, the association
1972may establish different eligibility requirements and operational
1973procedures for any line or type of coverage for any specified
1974eligible area or portion of an eligible area if the board
1975determines that such changes to the eligibility requirements and
1976operational procedures are justified due to the voluntary market
1977being sufficiently stable and competitive in such area or for
1978such line or type of coverage and that consumers who, in good
1979faith, are unable to obtain insurance through the voluntary
1980market through ordinary methods would continue to have access to
1981coverage from the association. When coverage is sought in
1982connection with a real property transfer, such requirements and
1983procedures shall not provide for an effective date of coverage
1984later than the date of the closing of the transfer as
1985established by the transferor, the transferee, and, if
1986applicable, the lender.
1987     9.  Notwithstanding any other provision of law:
1988     a.  The pledge or sale of, the lien upon, and the security
1989interest in any rights, revenues, or other assets of the
1990association created or purported to be created pursuant to any
1991financing documents to secure any bonds or other indebtedness of
1992the association shall be and remain valid and enforceable,
1993notwithstanding the commencement of and during the continuation
1994of, and after, any rehabilitation, insolvency, liquidation,
1995bankruptcy, receivership, conservatorship, reorganization, or
1996similar proceeding against the association under the laws of
1997this state or any other applicable laws.
1998     b.  No such proceeding shall relieve the association of its
1999obligation, or otherwise affect its ability to perform its
2000obligation, to continue to collect, or levy and collect,
2001assessments, market equalization or other surcharges, projected
2002recoveries from the Florida Hurricane Insurance Catastrophe
2003Fund, reinsurance recoverables, or any other rights, revenues,
2004or other assets of the association pledged.
2005     c.  Each such pledge or sale of, lien upon, and security
2006interest in, including the priority of such pledge, lien, or
2007security interest, any such assessments, emergency assessments,
2008market equalization or renewal surcharges, projected recoveries
2009from the Florida Hurricane Insurance Catastrophe Fund,
2010reinsurance recoverables, or other rights, revenues, or other
2011assets which are collected, or levied and collected, after the
2012commencement of and during the pendency of or after any such
2013proceeding shall continue unaffected by such proceeding.
2014     d.  As used in this subsection, the term "financing
2015documents" means any agreement, instrument, or other document
2016now existing or hereafter created evidencing any bonds or other
2017indebtedness of the association or pursuant to which any such
2018bonds or other indebtedness has been or may be issued and
2019pursuant to which any rights, revenues, or other assets of the
2020association are pledged or sold to secure the repayment of such
2021bonds or indebtedness, together with the payment of interest on
2022such bonds or such indebtedness, or the payment of any other
2023obligation of the association related to such bonds or
2024indebtedness.
2025     e.  Any such pledge or sale of assessments, revenues,
2026contract rights or other rights or assets of the association
2027shall constitute a lien and security interest, or sale, as the
2028case may be, that is immediately effective and attaches to such
2029assessments, revenues, contract, or other rights or assets,
2030whether or not imposed or collected at the time the pledge or
2031sale is made. Any such pledge or sale is effective, valid,
2032binding, and enforceable against the association or other entity
2033making such pledge or sale, and valid and binding against and
2034superior to any competing claims or obligations owed to any
2035other person or entity, including policyholders in this state,
2036asserting rights in any such assessments, revenues, contract, or
2037other rights or assets to the extent set forth in and in
2038accordance with the terms of the pledge or sale contained in the
2039applicable financing documents, whether or not any such person
2040or entity has notice of such pledge or sale and without the need
2041for any physical delivery, recordation, filing, or other action.
2042     f.  There shall be no liability on the part of, and no
2043cause of action of any nature shall arise against, any member
2044insurer or its agents or employees, agents or employees of the
2045association, members of the board of directors of the
2046association, or the department or its representatives, for any
2047action taken by them in the performance of their duties or
2048responsibilities under this subsection. Such immunity does not
2049apply to actions for breach of any contract or agreement
2050pertaining to insurance, or any willful tort.
2051     (6)  CITIZENS PROPERTY INSURANCE CORPORATION.--
2052     (b)1.  All insurers authorized to write one or more subject
2053lines of business in this state are subject to assessment by the
2054corporation and, for the purposes of this subsection, are
2055referred to collectively as "assessable insurers." Insurers
2056writing one or more subject lines of business in this state
2057pursuant to part VIII of chapter 626 are not assessable
2058insurers, but insureds who procure one or more subject lines of
2059business in this state pursuant to part VIII of chapter 626 are
2060subject to assessment by the corporation and are referred to
2061collectively as "assessable insureds." An authorized insurer's
2062assessment liability shall begin on the first day of the
2063calendar year following the year in which the insurer was issued
2064a certificate of authority to transact insurance for subject
2065lines of business in this state and shall terminate 1 year after
2066the end of the first calendar year during which the insurer no
2067longer holds a certificate of authority to transact insurance
2068for subject lines of business in this state.
2069     2.a.  All revenues, assets, liabilities, losses, and
2070expenses of the corporation shall be divided into three separate
2071accounts as follows:
2072     (I)  A personal lines account for personal residential
2073policies issued by the corporation or issued by the Residential
2074Property and Casualty Joint Underwriting Association and renewed
2075by the corporation that provide comprehensive, multiperil
2076coverage on risks that are not located in areas eligible for
2077coverage in the Florida Windstorm Underwriting Association as
2078those areas were defined on January 1, 2002, and for such
2079policies that do not provide coverage for the peril of wind on
2080risks that are located in such areas;
2081     (II)  A commercial lines account for commercial residential
2082policies issued by the corporation or issued by the Residential
2083Property and Casualty Joint Underwriting Association and renewed
2084by the corporation that provide coverage for basic property
2085perils on risks that are not located in areas eligible for
2086coverage in the Florida Windstorm Underwriting Association as
2087those areas were defined on January 1, 2002, and for such
2088policies that do not provide coverage for the peril of wind on
2089risks that are located in such areas; and
2090     (III)  A high-risk account for personal residential
2091policies and commercial residential and commercial
2092nonresidential property policies issued by the corporation or
2093transferred to the corporation that provide coverage for the
2094peril of wind on risks that are located in areas eligible for
2095coverage in the Florida Windstorm Underwriting Association as
2096those areas were defined on January 1, 2002. The high-risk
2097account must also include quota share primary insurance under
2098subparagraph (c)2. The area eligible for coverage under the
2099high-risk account also includes the area within Port Canaveral,
2100which is bordered on the south by the City of Cape Canaveral,
2101bordered on the west by the Banana River, and bordered on the
2102north by Federal Government property. The office may remove
2103territory from the area eligible for wind-only and quota share
2104coverage if, after a public hearing, the office finds that
2105authorized insurers in the voluntary market are willing and able
2106to write sufficient amounts of personal and commercial
2107residential coverage for all perils in the territory, including
2108coverage for the peril of wind, such that risks covered by wind-
2109only policies in the removed territory could be issued a policy
2110by the corporation in either the personal lines or commercial
2111lines account without a significant increase in the
2112corporation's probable maximum loss in such account. Removal of
2113territory from the area eligible for wind-only or quota share
2114coverage does not alter the assignment of wind coverage written
2115in such areas to the high-risk account.
2116     b.  The three separate accounts must be maintained as long
2117as financing obligations entered into by the Florida Windstorm
2118Underwriting Association or Residential Property and Casualty
2119Joint Underwriting Association are outstanding, in accordance
2120with the terms of the corresponding financing documents. When
2121the financing obligations are no longer outstanding, in
2122accordance with the terms of the corresponding financing
2123documents, the corporation may use a single account for all
2124revenues, assets, liabilities, losses, and expenses of the
2125corporation.
2126     c.  Creditors of the Residential Property and Casualty
2127Joint Underwriting Association shall have a claim against, and
2128recourse to, the accounts referred to in sub-sub-subparagraphs
2129a.(I) and (II) and shall have no claim against, or recourse to,
2130the account referred to in sub-sub-subparagraph a.(III).
2131Creditors of the Florida Windstorm Underwriting Association
2132shall have a claim against, and recourse to, the account
2133referred to in sub-sub-subparagraph a.(III) and shall have no
2134claim against, or recourse to, the accounts referred to in sub-
2135sub-subparagraphs a.(I) and (II).
2136     d.  Revenues, assets, liabilities, losses, and expenses not
2137attributable to particular accounts shall be prorated among the
2138accounts.
2139     e.  The Legislature finds that the revenues of the
2140corporation are revenues that are necessary to meet the
2141requirements set forth in documents authorizing the issuance of
2142bonds under this subsection.
2143     f.  No part of the income of the corporation may inure to
2144the benefit of any private person.
2145     3.  With respect to a deficit in an account:
2146     a.  When the deficit incurred in a particular calendar year
2147is not greater than 10 percent of the aggregate statewide direct
2148written premium for the subject lines of business for the prior
2149calendar year, the entire deficit shall be recovered through
2150regular assessments of assessable insurers under paragraph (g)
2151and assessable insureds.
2152     b.  When the deficit incurred in a particular calendar year
2153exceeds 10 percent of the aggregate statewide direct written
2154premium for the subject lines of business for the prior calendar
2155year, the corporation shall levy regular assessments on
2156assessable insurers under paragraph (g) and on assessable
2157insureds in an amount equal to the greater of 10 percent of the
2158deficit or 10 percent of the aggregate statewide direct written
2159premium for the subject lines of business for the prior calendar
2160year. Any remaining deficit shall be recovered through emergency
2161assessments under sub-subparagraph d.
2162     c.  Each assessable insurer's share of the amount being
2163assessed under sub-subparagraph a. or sub-subparagraph b. shall
2164be in the proportion that the assessable insurer's direct
2165written premium for the subject lines of business for the year
2166preceding the assessment bears to the aggregate statewide direct
2167written premium for the subject lines of business for that year.
2168The assessment percentage applicable to each assessable insured
2169is the ratio of the amount being assessed under sub-subparagraph
2170a. or sub-subparagraph b. to the aggregate statewide direct
2171written premium for the subject lines of business for the prior
2172year. Assessments levied by the corporation on assessable
2173insurers under sub-subparagraphs a. and b. shall be paid as
2174required by the corporation's plan of operation and paragraph
2175(g). Assessments levied by the corporation on assessable
2176insureds under sub-subparagraphs a. and b. shall be collected by
2177the surplus lines agent at the time the surplus lines agent
2178collects the surplus lines tax required by s. 626.932 and shall
2179be paid to the Florida Surplus Lines Service Office at the time
2180the surplus lines agent pays the surplus lines tax to the
2181Florida Surplus Lines Service Office. Upon receipt of regular
2182assessments from surplus lines agents, the Florida Surplus Lines
2183Service Office shall transfer the assessments directly to the
2184corporation as determined by the corporation.
2185     d.  Upon a determination by the board of governors that a
2186deficit in an account exceeds the amount that will be recovered
2187through regular assessments under sub-subparagraph a. or sub-
2188subparagraph b., the board shall levy, after verification by the
2189office, emergency assessments, for as many years as necessary to
2190cover the deficits, to be collected by assessable insurers and
2191the corporation and collected from assessable insureds upon
2192issuance or renewal of policies for subject lines of business,
2193excluding National Flood Insurance policies. The amount of the
2194emergency assessment collected in a particular year shall be a
2195uniform percentage of that year's direct written premium for
2196subject lines of business and all accounts of the corporation,
2197excluding National Flood Insurance Program policy premiums, as
2198annually determined by the board and verified by the office. The
2199office shall verify the arithmetic calculations involved in the
2200board's determination within 30 days after receipt of the
2201information on which the determination was based.
2202Notwithstanding any other provision of law, the corporation and
2203each assessable insurer that writes subject lines of business
2204shall collect emergency assessments from its policyholders
2205without such obligation being affected by any credit,
2206limitation, exemption, or deferment. Emergency assessments
2207levied by the corporation on assessable insureds shall be
2208collected by the surplus lines agent at the time the surplus
2209lines agent collects the surplus lines tax required by s.
2210626.932 and shall be paid to the Florida Surplus Lines Service
2211Office at the time the surplus lines agent pays the surplus
2212lines tax to the Florida Surplus Lines Service Office. The
2213emergency assessments so collected shall be transferred directly
2214to the corporation on a periodic basis as determined by the
2215corporation and shall be held by the corporation solely in the
2216applicable account. The aggregate amount of emergency
2217assessments levied for an account under this sub-subparagraph in
2218any calendar year may not exceed the greater of 10 percent of
2219the amount needed to cover the original deficit, plus interest,
2220fees, commissions, required reserves, and other costs associated
2221with financing of the original deficit, or 10 percent of the
2222aggregate statewide direct written premium for subject lines of
2223business and for all accounts of the corporation for the prior
2224year, plus interest, fees, commissions, required reserves, and
2225other costs associated with financing the original deficit.
2226     e.  The corporation may pledge the proceeds of assessments,
2227projected recoveries from the Florida Hurricane Insurance
2228Catastrophe Fund, other insurance and reinsurance recoverables,
2229market equalization surcharges and other surcharges, and other
2230funds available to the corporation as the source of revenue for
2231and to secure bonds issued under paragraph (g), bonds or other
2232indebtedness issued under subparagraph (c)3., or lines of credit
2233or other financing mechanisms issued or created under this
2234subsection, or to retire any other debt incurred as a result of
2235deficits or events giving rise to deficits, or in any other way
2236that the board determines will efficiently recover such
2237deficits. The purpose of the lines of credit or other financing
2238mechanisms is to provide additional resources to assist the
2239corporation in covering claims and expenses attributable to a
2240catastrophe. As used in this subsection, the term "assessments"
2241includes regular assessments under sub-subparagraph a., sub-
2242subparagraph b., or subparagraph (g)1. and emergency assessments
2243under sub-subparagraph d. Emergency assessments collected under
2244sub-subparagraph d. are not part of an insurer's rates, are not
2245premium, and are not subject to premium tax, fees, or
2246commissions; however, failure to pay the emergency assessment
2247shall be treated as failure to pay premium. The emergency
2248assessments under sub-subparagraph d. shall continue as long as
2249any bonds issued or other indebtedness incurred with respect to
2250a deficit for which the assessment was imposed remain
2251outstanding, unless adequate provision has been made for the
2252payment of such bonds or other indebtedness pursuant to the
2253documents governing such bonds or other indebtedness.
2254     f.  As used in this subsection, the term "subject lines of
2255business" means insurance written by assessable insurers or
2256procured by assessable insureds on real or personal property, as
2257defined in s. 624.604, including insurance for fire, industrial
2258fire, allied lines, farmowners multiperil, homeowners
2259multiperil, commercial multiperil, and mobile homes, and
2260including liability coverage on all such insurance, but
2261excluding inland marine as defined in s. 624.607(3) and
2262excluding vehicle insurance as defined in s. 624.605(1) other
2263than insurance on mobile homes used as permanent dwellings.
2264     g.  The Florida Surplus Lines Service Office shall
2265determine annually the aggregate statewide written premium in
2266subject lines of business procured by assessable insureds and
2267shall report that information to the corporation in a form and
2268at a time the corporation specifies to ensure that the
2269corporation can meet the requirements of this subsection and the
2270corporation's financing obligations.
2271     h.  The Florida Surplus Lines Service Office shall verify
2272the proper application by surplus lines agents of assessment
2273percentages for regular assessments and emergency assessments
2274levied under this subparagraph on assessable insureds and shall
2275assist the corporation in ensuring the accurate, timely
2276collection and payment of assessments by surplus lines agents as
2277required by the corporation.
2278     (c)  The plan of operation of the corporation:
2279     1.  Must provide for adoption of residential property and
2280casualty insurance policy forms and commercial residential and
2281nonresidential property insurance forms, which forms must be
2282approved by the office prior to use. The corporation shall adopt
2283the following policy forms:
2284     a.  Standard personal lines policy forms that are
2285comprehensive multiperil policies providing full coverage of a
2286residential property equivalent to the coverage provided in the
2287private insurance market under an HO-3, HO-4, or HO-6 policy.
2288     b.  Basic personal lines policy forms that are policies
2289similar to an HO-8 policy or a dwelling fire policy that provide
2290coverage meeting the requirements of the secondary mortgage
2291market, but which coverage is more limited than the coverage
2292under a standard policy.
2293     c.  Commercial lines residential policy forms that are
2294generally similar to the basic perils of full coverage
2295obtainable for commercial residential structures in the admitted
2296voluntary market.
2297     d.  Personal lines and commercial lines residential
2298property insurance forms that cover the peril of wind only. The
2299forms are applicable only to residential properties located in
2300areas eligible for coverage under the high-risk account referred
2301to in sub-subparagraph (b)2.a.
2302     e.  Commercial lines nonresidential property insurance
2303forms that cover the peril of wind only. The forms are
2304applicable only to nonresidential properties located in areas
2305eligible for coverage under the high-risk account referred to in
2306sub-subparagraph (b)2.a.
2307     2.a.  Must provide that the corporation adopt a program in
2308which the corporation and authorized insurers enter into quota
2309share primary insurance agreements for hurricane coverage, as
2310defined in s. 627.4025(2)(a), for eligible risks, and adopt
2311property insurance forms for eligible risks which cover the
2312peril of wind only. As used in this subsection, the term:
2313     (I)  "Quota share primary insurance" means an arrangement
2314in which the primary hurricane coverage of an eligible risk is
2315provided in specified percentages by the corporation and an
2316authorized insurer. The corporation and authorized insurer are
2317each solely responsible for a specified percentage of hurricane
2318coverage of an eligible risk as set forth in a quota share
2319primary insurance agreement between the corporation and an
2320authorized insurer and the insurance contract. The
2321responsibility of the corporation or authorized insurer to pay
2322its specified percentage of hurricane losses of an eligible
2323risk, as set forth in the quota share primary insurance
2324agreement, may not be altered by the inability of the other
2325party to the agreement to pay its specified percentage of
2326hurricane losses. Eligible risks that are provided hurricane
2327coverage through a quota share primary insurance arrangement
2328must be provided policy forms that set forth the obligations of
2329the corporation and authorized insurer under the arrangement,
2330clearly specify the percentages of quota share primary insurance
2331provided by the corporation and authorized insurer, and
2332conspicuously and clearly state that neither the authorized
2333insurer nor the corporation may be held responsible beyond its
2334specified percentage of coverage of hurricane losses.
2335     (II)  "Eligible risks" means personal lines residential and
2336commercial lines residential risks that meet the underwriting
2337criteria of the corporation and are located in areas that were
2338eligible for coverage by the Florida Windstorm Underwriting
2339Association on January 1, 2002.
2340     b.  The corporation may enter into quota share primary
2341insurance agreements with authorized insurers at corporation
2342coverage levels of 90 percent and 50 percent.
2343     c.  If the corporation determines that additional coverage
2344levels are necessary to maximize participation in quota share
2345primary insurance agreements by authorized insurers, the
2346corporation may establish additional coverage levels. However,
2347the corporation's quota share primary insurance coverage level
2348may not exceed 90 percent.
2349     d.  Any quota share primary insurance agreement entered
2350into between an authorized insurer and the corporation must
2351provide for a uniform specified percentage of coverage of
2352hurricane losses, by county or territory as set forth by the
2353corporation board, for all eligible risks of the authorized
2354insurer covered under the quota share primary insurance
2355agreement.
2356     e.  Any quota share primary insurance agreement entered
2357into between an authorized insurer and the corporation is
2358subject to review and approval by the office. However, such
2359agreement shall be authorized only as to insurance contracts
2360entered into between an authorized insurer and an insured who is
2361already insured by the corporation for wind coverage.
2362     f.  For all eligible risks covered under quota share
2363primary insurance agreements, the exposure and coverage levels
2364for both the corporation and authorized insurers shall be
2365reported by the corporation to the Florida Hurricane Insurance
2366Catastrophe Fund. For all policies of eligible risks covered
2367under quota share primary insurance agreements, the corporation
2368and the authorized insurer shall maintain complete and accurate
2369records for the purpose of exposure and loss reimbursement
2370audits as required by Florida Hurricane Insurance Catastrophe
2371Fund rules. The corporation and the authorized insurer shall
2372each maintain duplicate copies of policy declaration pages and
2373supporting claims documents.
2374     g.  The corporation board shall establish in its plan of
2375operation standards for quota share agreements which ensure that
2376there is no discriminatory application among insurers as to the
2377terms of quota share agreements, pricing of quota share
2378agreements, incentive provisions if any, and consideration paid
2379for servicing policies or adjusting claims.
2380     h.  The quota share primary insurance agreement between the
2381corporation and an authorized insurer must set forth the
2382specific terms under which coverage is provided, including, but
2383not limited to, the sale and servicing of policies issued under
2384the agreement by the insurance agent of the authorized insurer
2385producing the business, the reporting of information concerning
2386eligible risks, the payment of premium to the corporation, and
2387arrangements for the adjustment and payment of hurricane claims
2388incurred on eligible risks by the claims adjuster and personnel
2389of the authorized insurer. Entering into a quota sharing
2390insurance agreement between the corporation and an authorized
2391insurer shall be voluntary and at the discretion of the
2392authorized insurer.
2393     3.  May provide that the corporation may employ or
2394otherwise contract with individuals or other entities to provide
2395administrative or professional services that may be appropriate
2396to effectuate the plan. The corporation shall have the power to
2397borrow funds, by issuing bonds or by incurring other
2398indebtedness, and shall have other powers reasonably necessary
2399to effectuate the requirements of this subsection, including,
2400without limitation, the power to issue bonds and incur other
2401indebtedness in order to refinance outstanding bonds or other
2402indebtedness. The corporation may, but is not required to, seek
2403judicial validation of its bonds or other indebtedness under
2404chapter 75. The corporation may issue bonds or incur other
2405indebtedness, or have bonds issued on its behalf by a unit of
2406local government pursuant to subparagraph (g)2., in the absence
2407of a hurricane or other weather-related event, upon a
2408determination by the corporation, subject to approval by the
2409office, that such action would enable it to efficiently meet the
2410financial obligations of the corporation and that such
2411financings are reasonably necessary to effectuate the
2412requirements of this subsection. The corporation is authorized
2413to take all actions needed to facilitate tax-free status for any
2414such bonds or indebtedness, including formation of trusts or
2415other affiliated entities. The corporation shall have the
2416authority to pledge assessments, projected recoveries from the
2417Florida Hurricane Insurance Catastrophe Fund, other reinsurance
2418recoverables, market equalization and other surcharges, and
2419other funds available to the corporation as security for bonds
2420or other indebtedness. In recognition of s. 10, Art. I of the
2421State Constitution, prohibiting the impairment of obligations of
2422contracts, it is the intent of the Legislature that no action be
2423taken whose purpose is to impair any bond indenture or financing
2424agreement or any revenue source committed by contract to such
2425bond or other indebtedness.
2426     4.a.  Must require that the corporation operate subject to
2427the supervision and approval of a board of governors consisting
2428of 8 individuals who are residents of this state, from different
2429geographical areas of this state. The Governor, the Chief
2430Financial Officer, the President of the Senate, and the Speaker
2431of the House of Representatives shall each appoint two members
2432of the board, effective August 1, 2005. At least one of the two
2433members appointed by each appointing officer must have
2434demonstrated expertise in insurance. The Chief Financial Officer
2435shall designate one of the appointees as chair. All board
2436members serve at the pleasure of the appointing officer. All
2437board members, including the chair, must be appointed to serve
2438for 3-year terms beginning annually on a date designated by the
2439plan. Any board vacancy shall be filled for the unexpired term
2440by the appointing officer. The Chief Financial Officer shall
2441appoint a technical advisory group to provide information and
2442advice to the board of governors in connection with the board's
2443duties under this subsection. The executive director and senior
2444managers of the corporation shall be engaged by the board, as
2445recommended by the Chief Financial Officer, and serve at the
2446pleasure of the board. The executive director is responsible for
2447employing other staff as the corporation may require, subject to
2448review and concurrence by the board and the Chief Financial
2449Officer.
2450     b.  The board shall create a Market Accountability Advisory
2451Committee to assist the corporation in developing awareness of
2452its rates and its customer and agent service levels in
2453relationship to the voluntary market insurers writing similar
2454coverage. The members of the advisory committee shall consist of
2455the following 11 persons, one of whom must be elected chair by
2456the members of the committee: four representatives, one
2457appointed by the Florida Association of Insurance Agents, one by
2458the Florida Association of Insurance and Financial Advisors, one
2459by the Professional Insurance Agents of Florida, and one by the
2460Latin American Association of Insurance Agencies; three
2461representatives appointed by the insurers with the three highest
2462voluntary market share of residential property insurance
2463business in the state; one representative from the Office of
2464Insurance Regulation; one consumer appointed by the board who is
2465insured by the corporation at the time of appointment to the
2466committee; one representative appointed by the Florida
2467Association of Realtors; and one representative appointed by the
2468Florida Bankers Association. All members must serve for 3-year
2469terms and may serve for consecutive terms. The committee shall
2470report to the corporation at each board meeting on insurance
2471market issues which may include rates and rate competition with
2472the voluntary market; service, including policy issuance, claims
2473processing, and general responsiveness to policyholders,
2474applicants, and agents; and matters relating to depopulation.
2475     5.  Must provide a procedure for determining the
2476eligibility of a risk for coverage, as follows:
2477     a.  Subject to the provisions of s. 627.3517, with respect
2478to personal lines residential risks, if the risk is offered
2479coverage from an authorized insurer at the insurer's approved
2480rate under either a standard policy including wind coverage or,
2481if consistent with the insurer's underwriting rules as filed
2482with the office, a basic policy including wind coverage, the
2483risk is not eligible for any policy issued by the corporation.
2484If the risk is not able to obtain any such offer, the risk is
2485eligible for either a standard policy including wind coverage or
2486a basic policy including wind coverage issued by the
2487corporation; however, if the risk could not be insured under a
2488standard policy including wind coverage regardless of market
2489conditions, the risk shall be eligible for a basic policy
2490including wind coverage unless rejected under subparagraph 8.
2491The corporation shall determine the type of policy to be
2492provided on the basis of objective standards specified in the
2493underwriting manual and based on generally accepted underwriting
2494practices.
2495     (I)  If the risk accepts an offer of coverage through the
2496market assistance plan or an offer of coverage through a
2497mechanism established by the corporation before a policy is
2498issued to the risk by the corporation or during the first 30
2499days of coverage by the corporation, and the producing agent who
2500submitted the application to the plan or to the corporation is
2501not currently appointed by the insurer, the insurer shall:
2502     (A)  Pay to the producing agent of record of the policy,
2503for the first year, an amount that is the greater of the
2504insurer's usual and customary commission for the type of policy
2505written or a fee equal to the usual and customary commission of
2506the corporation; or
2507     (B)  Offer to allow the producing agent of record of the
2508policy to continue servicing the policy for a period of not less
2509than 1 year and offer to pay the agent the greater of the
2510insurer's or the corporation's usual and customary commission
2511for the type of policy written.
2512
2513If the producing agent is unwilling or unable to accept
2514appointment, the new insurer shall pay the agent in accordance
2515with sub-sub-sub-subparagraph (A).
2516     (II)  When the corporation enters into a contractual
2517agreement for a take-out plan, the producing agent of record of
2518the corporation policy is entitled to retain any unearned
2519commission on the policy, and the insurer shall:
2520     (A)  Pay to the producing agent of record of the
2521corporation policy, for the first year, an amount that is the
2522greater of the insurer's usual and customary commission for the
2523type of policy written or a fee equal to the usual and customary
2524commission of the corporation; or
2525     (B)  Offer to allow the producing agent of record of the
2526corporation policy to continue servicing the policy for a period
2527of not less than 1 year and offer to pay the agent the greater
2528of the insurer's or the corporation's usual and customary
2529commission for the type of policy written.
2530
2531If the producing agent is unwilling or unable to accept
2532appointment, the new insurer shall pay the agent in accordance
2533with sub-sub-sub-subparagraph (A).
2534     b.  With respect to commercial lines residential risks, if
2535the risk is offered coverage under a policy including wind
2536coverage from an authorized insurer at its approved rate, the
2537risk is not eligible for any policy issued by the corporation.
2538If the risk is not able to obtain any such offer, the risk is
2539eligible for a policy including wind coverage issued by the
2540corporation.
2541     (I)  If the risk accepts an offer of coverage through the
2542market assistance plan or an offer of coverage through a
2543mechanism established by the corporation before a policy is
2544issued to the risk by the corporation or during the first 30
2545days of coverage by the corporation, and the producing agent who
2546submitted the application to the plan or the corporation is not
2547currently appointed by the insurer, the insurer shall:
2548     (A)  Pay to the producing agent of record of the policy,
2549for the first year, an amount that is the greater of the
2550insurer's usual and customary commission for the type of policy
2551written or a fee equal to the usual and customary commission of
2552the corporation; or
2553     (B)  Offer to allow the producing agent of record of the
2554policy to continue servicing the policy for a period of not less
2555than 1 year and offer to pay the agent the greater of the
2556insurer's or the corporation's usual and customary commission
2557for the type of policy written.
2558
2559If the producing agent is unwilling or unable to accept
2560appointment, the new insurer shall pay the agent in accordance
2561with sub-sub-sub-subparagraph (A).
2562     (II)  When the corporation enters into a contractual
2563agreement for a take-out plan, the producing agent of record of
2564the corporation policy is entitled to retain any unearned
2565commission on the policy, and the insurer shall:
2566     (A)  Pay to the producing agent of record of the
2567corporation policy, for the first year, an amount that is the
2568greater of the insurer's usual and customary commission for the
2569type of policy written or a fee equal to the usual and customary
2570commission of the corporation; or
2571     (B)  Offer to allow the producing agent of record of the
2572corporation policy to continue servicing the policy for a period
2573of not less than 1 year and offer to pay the agent the greater
2574of the insurer's or the corporation's usual and customary
2575commission for the type of policy written.
2576
2577If the producing agent is unwilling or unable to accept
2578appointment, the new insurer shall pay the agent in accordance
2579with sub-sub-sub-subparagraph (A).
2580     6.  Must include rules for classifications of risks and
2581rates therefor.
2582     7.  Must provide that if premium and investment income for
2583an account attributable to a particular calendar year are in
2584excess of projected losses and expenses for the account
2585attributable to that year, such excess shall be held in surplus
2586in the account. Such surplus shall be available to defray
2587deficits in that account as to future years and shall be used
2588for that purpose prior to assessing assessable insurers and
2589assessable insureds as to any calendar year.
2590     8.  Must provide objective criteria and procedures to be
2591uniformly applied for all applicants in determining whether an
2592individual risk is so hazardous as to be uninsurable. In making
2593this determination and in establishing the criteria and
2594procedures, the following shall be considered:
2595     a.  Whether the likelihood of a loss for the individual
2596risk is substantially higher than for other risks of the same
2597class; and
2598     b.  Whether the uncertainty associated with the individual
2599risk is such that an appropriate premium cannot be determined.
2600
2601The acceptance or rejection of a risk by the corporation shall
2602be construed as the private placement of insurance, and the
2603provisions of chapter 120 shall not apply.
2604     9.  Must provide that the corporation shall make its best
2605efforts to procure catastrophe reinsurance at reasonable rates,
2606to cover its projected 100-year probable maximum loss as
2607determined by the board of governors.
2608     10.  Must provide that in the event of regular deficit
2609assessments under sub-subparagraph (b)3.a. or sub-subparagraph
2610(b)3.b., in the personal lines account, the commercial lines
2611residential account, or the high-risk account, the corporation
2612shall levy upon corporation policyholders in its next rate
2613filing, or by a separate rate filing solely for this purpose, a
2614market equalization surcharge arising from a regular assessment
2615in such account in a percentage equal to the total amount of
2616such regular assessments divided by the aggregate statewide
2617direct written premium for subject lines of business for the
2618prior calendar year. Market equalization surcharges under this
2619subparagraph are not considered premium and are not subject to
2620commissions, fees, or premium taxes; however, failure to pay a
2621market equalization surcharge shall be treated as failure to pay
2622premium.
2623     11.  The policies issued by the corporation must provide
2624that, if the corporation or the market assistance plan obtains
2625an offer from an authorized insurer to cover the risk at its
2626approved rates, the risk is no longer eligible for renewal
2627through the corporation.
2628     12.  Corporation policies and applications must include a
2629notice that the corporation policy could, under this section, be
2630replaced with a policy issued by an authorized insurer that does
2631not provide coverage identical to the coverage provided by the
2632corporation. The notice shall also specify that acceptance of
2633corporation coverage creates a conclusive presumption that the
2634applicant or policyholder is aware of this potential.
2635     13.  May establish, subject to approval by the office,
2636different eligibility requirements and operational procedures
2637for any line or type of coverage for any specified county or
2638area if the board determines that such changes to the
2639eligibility requirements and operational procedures are
2640justified due to the voluntary market being sufficiently stable
2641and competitive in such area or for such line or type of
2642coverage and that consumers who, in good faith, are unable to
2643obtain insurance through the voluntary market through ordinary
2644methods would continue to have access to coverage from the
2645corporation. When coverage is sought in connection with a real
2646property transfer, such requirements and procedures shall not
2647provide for an effective date of coverage later than the date of
2648the closing of the transfer as established by the transferor,
2649the transferee, and, if applicable, the lender.
2650     14.  Must provide that, with respect to the high-risk
2651account, any assessable insurer with a surplus as to
2652policyholders of $25 million or less writing 25 percent or more
2653of its total countrywide property insurance premiums in this
2654state may petition the office, within the first 90 days of each
2655calendar year, to qualify as a limited apportionment company. In
2656no event shall a limited apportionment company be required to
2657participate in the portion of any assessment, within the high-
2658risk account, pursuant to sub-subparagraph (b)3.a. or sub-
2659subparagraph (b)3.b. in the aggregate which exceeds $50 million
2660after payment of available high-risk account funds in any
2661calendar year. However, a limited apportionment company shall
2662collect from its policyholders any emergency assessment imposed
2663under sub-subparagraph (b)3.d. The plan shall provide that, if
2664the office determines that any regular assessment will result in
2665an impairment of the surplus of a limited apportionment company,
2666the office may direct that all or part of such assessment be
2667deferred as provided in subparagraph (g)4. However, there shall
2668be no limitation or deferment of an emergency assessment to be
2669collected from policyholders under sub-subparagraph (b)3.d.
2670     15.  Must provide that the corporation appoint as its
2671licensed agents only those agents who also hold an appointment
2672as defined in s. 626.015(3) with an insurer who at the time of
2673the agent's initial appointment by the corporation is authorized
2674to write and is actually writing personal lines residential
2675property coverage, commercial residential property coverage, or
2676commercial nonresidential property coverage within the state.
2677     (k)  Upon a determination by the office that the conditions
2678giving rise to the establishment and activation of the
2679corporation no longer exist, the corporation is dissolved. Upon
2680dissolution, the assets of the corporation shall be applied
2681first to pay all debts, liabilities, and obligations of the
2682corporation, including the establishment of reasonable reserves
2683for any contingent liabilities or obligations, and all remaining
2684assets of the corporation shall become property of the state and
2685shall be deposited in the Florida Hurricane Insurance
2686Catastrophe Fund. However, no dissolution shall take effect as
2687long as the corporation has bonds or other financial obligations
2688outstanding unless adequate provision has been made for the
2689payment of the bonds or other financial obligations pursuant to
2690the documents authorizing the issuance of the bonds or other
2691financial obligations.
2692     (l)1.  Effective July 1, 2002, policies of the Residential
2693Property and Casualty Joint Underwriting Association shall
2694become policies of the corporation. All obligations, rights,
2695assets and liabilities of the Residential Property and Casualty
2696Joint Underwriting Association, including bonds, note and debt
2697obligations, and the financing documents pertaining to them
2698become those of the corporation as of July 1, 2002. The
2699corporation is not required to issue endorsements or
2700certificates of assumption to insureds during the remaining term
2701of in-force transferred policies.
2702     2.  Effective July 1, 2002, policies of the Florida
2703Windstorm Underwriting Association are transferred to the
2704corporation and shall become policies of the corporation. All
2705obligations, rights, assets, and liabilities of the Florida
2706Windstorm Underwriting Association, including bonds, note and
2707debt obligations, and the financing documents pertaining to them
2708are transferred to and assumed by the corporation on July 1,
27092002. The corporation is not required to issue endorsement or
2710certificates of assumption to insureds during the remaining term
2711of in-force transferred policies.
2712     3.  The Florida Windstorm Underwriting Association and the
2713Residential Property and Casualty Joint Underwriting Association
2714shall take all actions as may be proper to further evidence the
2715transfers and shall provide the documents and instruments of
2716further assurance as may reasonably be requested by the
2717corporation for that purpose. The corporation shall execute
2718assumptions and instruments as the trustees or other parties to
2719the financing documents of the Florida Windstorm Underwriting
2720Association or the Residential Property and Casualty Joint
2721Underwriting Association may reasonably request to further
2722evidence the transfers and assumptions, which transfers and
2723assumptions, however, are effective on the date provided under
2724this paragraph whether or not, and regardless of the date on
2725which, the assumptions or instruments are executed by the
2726corporation. Subject to the relevant financing documents
2727pertaining to their outstanding bonds, notes, indebtedness, or
2728other financing obligations, the moneys, investments,
2729receivables, choses in action, and other intangibles of the
2730Florida Windstorm Underwriting Association shall be credited to
2731the high-risk account of the corporation, and those of the
2732personal lines residential coverage account and the commercial
2733lines residential coverage account of the Residential Property
2734and Casualty Joint Underwriting Association shall be credited to
2735the personal lines account and the commercial lines account,
2736respectively, of the corporation.
2737     4.  Effective July 1, 2002, a new applicant for property
2738insurance coverage who would otherwise have been eligible for
2739coverage in the Florida Windstorm Underwriting Association is
2740eligible for coverage from the corporation as provided in this
2741subsection.
2742     5.  The transfer of all policies, obligations, rights,
2743assets, and liabilities from the Florida Windstorm Underwriting
2744Association to the corporation and the renaming of the
2745Residential Property and Casualty Joint Underwriting Association
2746as the corporation shall in no way affect the coverage with
2747respect to covered policies as defined in s. 215.555(2)(c)
2748provided to these entities by the Florida Hurricane Insurance
2749Catastrophe Fund. The coverage provided by the Florida Hurricane
2750Insurance Catastrophe Fund to the Florida Windstorm Underwriting
2751Association based on its exposures as of June 30, 2002, and each
2752June 30 thereafter shall be redesignated as coverage for the
2753high-risk account of the corporation. Notwithstanding any other
2754provision of law, the coverage provided by the Florida Hurricane
2755Insurance Catastrophe Fund to the Residential Property and
2756Casualty Joint Underwriting Association based on its exposures
2757as of June 30, 2002, and each June 30 thereafter shall be
2758transferred to the personal lines account and the commercial
2759lines account of the corporation. Notwithstanding any other
2760provision of law, the high-risk account shall be treated, for
2761all Florida Hurricane Insurance Catastrophe Fund purposes, as if
2762it were a separate participating insurer with its own exposures,
2763reimbursement premium, and loss reimbursement. Likewise, the
2764personal lines and commercial lines accounts shall be viewed
2765together, for all Florida Hurricane Insurance Catastrophe Fund
2766purposes, as if the two accounts were one and represent a
2767single, separate participating insurer with its own exposures,
2768reimbursement premium, and loss reimbursement. The coverage
2769provided by the Florida Hurricane Insurance Catastrophe Fund to
2770the corporation shall constitute and operate as a full transfer
2771of coverage from the Florida Windstorm Underwriting Association
2772and Residential Property and Casualty Joint Underwriting to the
2773corporation.
2774     Section 12.  Paragraph (d) of subsection (6) of section
2775627.701, Florida Statutes, is amended to read:
2776     627.701  Liability of insureds; coinsurance; deductibles.--
2777     (6)
2778     (d)  The office shall draft and formally propose as a rule
2779the form for the certificate of security. The certificate of
2780security may be issued in any of the following circumstances:
2781     1.  A mortgage lender or other financial institution may
2782issue a certificate of security after granting the applicant a
2783line of credit, secured by equity in real property or other
2784reasonable security, which line of credit may be drawn on only
2785to pay for the deductible portion of insured construction or
2786reconstruction after a hurricane loss. In the sole discretion of
2787the mortgage lender or other financial institution, the line of
2788credit may be issued to an applicant on an unsecured basis.
2789     2.  A licensed insurance agent may issue a certificate of
2790security after obtaining for an applicant a line of credit,
2791secured by equity in real property or other reasonable security,
2792which line of credit may be drawn on only to pay for the
2793deductible portion of insured construction or reconstruction
2794after a hurricane loss. The Florida Hurricane Insurance
2795Catastrophe Fund shall negotiate agreements creating a financing
2796consortium to serve as an additional source of lines of credit
2797to secure deductibles. Any licensed insurance agent may act as
2798the agent of such consortium.
2799     3.  Any person qualified to act as a trustee for any
2800purpose may issue a certificate of security secured by a pledge
2801of assets, with the restriction that the assets may be drawn on
2802only to pay for the deductible portion of insured construction
2803or reconstruction after a hurricane loss.
2804     4.  Any insurer, including any admitted insurer or any
2805surplus lines insurer, may issue a certificate of security after
2806issuing the applicant a policy of supplemental insurance that
2807will pay for 100 percent of the deductible portion of insured
2808construction or reconstruction after a hurricane loss.
2809     5.  Any other method approved by the office upon finding
2810that such other method provides a similar level of security as
2811the methods specified in this paragraph and that such other
2812method has no negative impact on residential property insurance
2813catastrophic capacity. The legislative intent of this
2814subparagraph is to provide the flexibility needed to achieve the
2815public policy of expanding property insurance capacity while
2816improving the affordability of property insurance.
2817     Section 13.  Paragraph (a) of subsection (3) of section
2818627.7077, Florida Statutes, is amended to read:
2819     627.7077  Florida Sinkhole Insurance Facility and other
2820matters related to affordability and availability of sinkhole
2821insurance; feasibility study.--
2822     (3)  The feasibility study shall, at a minimum, address the
2823following issues:
2824     (a)  Where the facility should be housed, including, but
2825not limited to, the options of creating a separate facility or
2826using the Citizens Property Insurance Corporation or the Florida
2827Hurricane Insurance Catastrophe Fund.
2828     Section 14.  Citizens Property Insurance Corporation wind-
2829storm coverage will sunset January 1, 2010. Beginning January 1,
28302007, all windstorm coverage provided through Citizens Property
2831Insurance Corporation will be phased out and coverage will be
2832provided through the Florida Catastrophe Fund.
2833     Section 15.  Sales tax revenues generated as estimated by
2834the Office of Economic and Demographic Research due to hurricane
2835damages and rebuilding shall be used as follows:
2836     (1)  Fifty percent of sales tax collection shall be
2837deposited in the Florida Catastrophe Fund.
2838     (2)  Fifty percent of sales tax collection shall be
2839deposited in the "Protect Our Homes" Mitigation Fund.
2840     Section 16.  Section 350.061, Florida Statutes, is
2841transferred, renumbered as section 11.402, Florida Statutes,
2842and amended to read:
2843     11.402 350.061  Public Counsel; appointment; oath;
2844restrictions on Public Counsel and his or her employees.--
2845     (1)  The Committee on Public Service Commission Oversight
2846shall appoint a Public Counsel by majority vote of the members
2847of the committee to represent the general public of Florida
2848before the Florida Public Service Commission and the Office of
2849Insurance Regulation. The Public Counsel shall be an attorney
2850admitted to practice before the Florida Supreme Court and shall
2851serve at the pleasure of the Committee on Public Service
2852Commission Oversight, subject to biennial reconfirmation by the
2853committee. The Public Counsel shall perform his or her duties
2854independently. Vacancies in the office shall be filled in the
2855same manner as the original appointment.
2856     (2)  The Public Counsel shall take and subscribe to the
2857oath of office required of state officers by the State
2858Constitution.
2859     (3)  No officer or full-time employee of the Public Counsel
2860shall actively engage in any other business or profession; serve
2861as the representative of any political party or on any executive
2862committee or other governing body thereof; serve as an
2863executive, officer, or employee of any political party,
2864committee, organization, or association; receive remuneration
2865for activities on behalf of any candidate for public office; or
2866engage on behalf of any candidate for public office in the
2867solicitation of votes or other activities in behalf of such
2868candidacy. Neither the Public Counsel nor any employee of the
2869Public Counsel shall become a candidate for election to public
2870office unless he or she shall first resign from his or her
2871office or employment.
2872     Section 17.  Section 350.0611, Florida Statutes, is
2873transferred, renumbered as section 11.403, Florida Statutes, and
2874amended to read:
2875     11.403 350.0611  Public Counsel; duties and powers.--It
2876shall be the duty of the Public Counsel to provide legal
2877representation for the people of the state in proceedings before
2878the Public Service Commission and the Office of Insurance
2879Regulation commission and in proceedings before counties
2880pursuant to s. 367.171(8). The Public Counsel shall have such
2881powers as are necessary to carry out the duties of his or her
2882office, including, but not limited to, the following specific
2883powers:
2884     (1)  To recommend to the Public Service Commission
2885commission or the counties, by petition, the commencement of any
2886proceeding or action or to appear, in the name of the state or
2887its citizens, in any proceeding or action before the commission
2888or the counties.,
2889     (2)  To recommend to the Office of Insurance Regulation, by
2890petition, the commencement of, and to appear in the name of the
2891state or its citizens in, any proceeding or action before the
2892office relating to:
2893     (a)  Rules governing residential property insurance; or
2894     (b)  Rate filings for residential property insurance which,
2895pursuant to standards determined by the office, request an
2896average statewide rate increase of 10 percent or greater as
2897compared to the current rates in effect or the rates in effect
289812 months prior to the proposed effective date. The Public
2899Counsel may not stay any final order of the Office of Insurance
2900Regulation.
2901     (3)  To and urge in any proceeding or action to which he or
2902she is a party therein any position that which he or she deems
2903to be in the public interest, whether consistent or inconsistent
2904with positions previously adopted by the commission, or the
2905counties, or the office, and use utilize therein all forms of
2906discovery available to attorneys in civil actions generally,
2907subject to protective orders of the commission, or the counties,
2908or the office, which shall be reviewable by summary procedure in
2909the circuit courts of this state.;
2910     (4)(2)  To have access to and use of all files, records,
2911and data of the commission, or the counties, or the office,
2912available to any other attorney representing parties in a
2913proceeding before the commission or the counties.;
2914     (5)(3)  In any proceeding in which he or she has
2915participated as a party, to seek review of any determination,
2916finding, or order of the commission, or the counties, or the
2917office, or of any hearing examiner designated by the commission,
2918or the counties, or the office, in the name of the state or its
2919citizens.;
2920     (6)(4)  To prepare and issue reports, recommendations, and
2921proposed orders to the commission or office, the Governor, and
2922the Legislature on any matter or subject within the jurisdiction
2923of the commission or office, and to make such recommendations as
2924he or she deems appropriate for legislation relative to
2925commission or office procedures, rules, jurisdiction, personnel,
2926and functions.; and
2927     (7)(5)  To appear before other state agencies, federal
2928agencies, and state and federal courts in connection with
2929matters under the jurisdiction of the commission or office, in
2930the name of the state or its citizens.
2931     Section 18.  Section 350.0612, Florida Statutes, is
2932transferred, renumbered as section 11.404, Florida Statutes, and
2933amended to read:
2934     11.404 350.0612  Public Counsel; location.--The Public
2935Counsel shall maintain his or her office in Leon County on the
2936premises of the commission or, if suitable space there cannot be
2937provided, at such other place convenient to the offices of the
2938Public Services Commission or the Office of Insurance Regulation
2939commissioners as will enable him or her to carry out
2940expeditiously the duties and functions of his or her office.
2941     Section 19.  Subsection (1) of section 408.40, Florida
2942Statutes, is amended to read:
2943     408.40  Public Counsel.--
2944     (1)  Notwithstanding any other provisions of this chapter,
2945the Public Counsel shall represent the public in any proceeding
2946before the agency or its advisory panels in any administrative
2947hearing conducted pursuant to chapter 120 or before any other
2948state and federal agencies and courts in any issue before the
2949agency, any court, or any agency. With respect to any such
2950proceeding, the Public Counsel is subject to the provisions of
2951and may use the powers granted to him or her by ss. 11.402-
295211.404 and ss. 350.0613 350.061-350.0614.
2953     Section 20.  Subsection (3) of section 109 of chapter 2000-
2954141, Laws of Florida, is amended to read:
2955     Section 109.  The Legislature has reviewed the Florida
2956Building Code that was adopted by action of the Florida Building
2957Commission on February 15, 2000, and that was noticed for rule
2958adoption by reference in Rule 9B-3.047, F.A.C., on February 18,
29592000, in the Florida Administrative Weekly on page 731. The
2960Florida Building Commission is directed to continue the process
2961to adopt the code, pursuant to section 120.54(3), Florida
2962Statutes, and to incorporate the following provisions or
2963standards for the State of Florida:
2964     (3)  For areas of the state not within the high velocity
2965hurricane zone, the commission shall adopt, pursuant to s.
2966553.73, Florida Statutes, the wind protection requirements of
2967the American Society of Civil Engineers, Standard 7, 1998
2968edition as implemented by the International Building Code, 2000
2969edition, and as modified by the commission in its February 15,
29702000, adoption of the Florida Building Code for rule adoption by
2971reference in Rule 9B-3.047, Florida Administrative Code.
2972However, from the eastern border of Franklin County to the
2973Florida-Alabama line, only land within 1 mile of the coast shall
2974be subject to the windborne-debris requirements adopted by the
2975commission. The exact location of wind speed lines shall be
2976established by local ordinance, using recognized physical
2977landmarks such as major roads, canals, rivers, and lake shores,
2978wherever possible. Buildings constructed in the windborne debris
2979region must be either designed for internal pressures that may
2980result inside a building when a window or door is broken or a
2981hole is created in its walls or roof by large debris, or be
2982designed with protected openings. Except in the high velocity
2983hurricane zone, local governments may not prohibit the option of
2984designing buildings to resist internal pressures.
2985
2986The Legislature declares that changes made to the proposed Rule
29879B-3.047, Florida Administrative Code, to implement the
2988requirements of this act prior to October 1, 2000, are not
2989subject to rule challenges under section 120.56, Florida
2990Statutes. However, the entire rule, adopted pursuant to s.
2991120.54(3), Florida Statutes, as amended after October 1, 2000,
2992is subject to rule challenges under s. 120.56, Florida Statutes.
2993     Section 21.  Task Force on Hurricane Mitigation and
2994Hurricane Insurance for Mobile and Manufactured Homes.--
2995     (1)  TASK FORCE CREATED.--There is created the Task Force
2996on Hurricane Mitigation and Hurricane Insurance for Mobile and
2997Manufactured Homes.
2998     (2)  ADMINISTRATION.--The task force shall be
2999administratively housed within the Office of Insurance
3000Regulation but shall operate independently of any state officer
3001or agency. The office shall provide such administrative support
3002as the task force deems necessary to accomplish its mission and
3003shall provide necessary funding for the task force within the
3004office's existing resources. The Executive Office of the
3005Governor, the Department of Financial Services, the Office of
3006Insurance Regulation, the Department of Highway Safety and Motor
3007Vehicles, and the Department of Community Affairs shall provide
3008substantive staff support for the task force.
3009     (3)  MEMBERSHIP.--The members of the task force shall be
3010appointed as follows:
3011     (a)  The Governor shall appoint two members who have
3012expertise in financial matters, one of whom is a representative
3013of the mobile or manufactured home industry and one of whom is a
3014representative of insurance consumers.
3015     (b)  The Chief Financial Officer shall appoint two members
3016who have expertise in financial matters, one of whom is a
3017representative of a property insurer writing mobile or
3018manufactured homeowners insurance in this state and one of whom
3019is a representative of insurance agents.
3020     (c)  The President of the Senate shall appoint one member.
3021     (d)  The Speaker of the House of Representatives shall
3022appoint one member.
3023     (e)  The Commissioner of Insurance Regulation or his or her
3024designee shall serve as an ex officio voting member of the task
3025force.
3026     (f)  The Executive Director of Citizens Property Insurance
3027or his or her designee shall serve as an ex officio voting
3028member of the task force.
3029     (g)  The Chief Executive Officer of the Federal Alliance
3030for Safe Homes, Incorporated or his or her designee shall serve
3031as an ex officio voting member of the task force.
3032
3033Members of the task force shall serve without compensation but
3034may receive reimbursement for per diem and travel expenses as
3035provided in s. 112.061, Florida Statutes.
3036     (4)  PURPOSE AND INTENT.--The Legislature recognizes the
3037continued availability of hurricane insurance coverage for
3038mobile and manufactured home owners in this state is essential
3039to the state's economic survival. The Legislature further
3040recognizes hurricane mitigation measures and building codes may
3041reduce the likelihood or amount of damage to mobile or
3042manufactured homes in the event of a hurricane. The Legislature
3043further recognizes mobile and manufactured homes provide safe
3044and affordable housing to many residents of this state. The
3045purpose of the task force is to make recommendations to the
3046legislative and executive branches of this state's government
3047relating to the creation and maintenance of insurance capacity
3048in the private sector and public sector that is sufficient to
3049ensure that all mobile and manufactured home owners in this
3050state are able to obtain appropriate insurance coverage for
3051hurricane losses and relating to the effectiveness of hurricane
3052mitigation measures for mobile or manufactured homes as further
3053described in this section.
3054     (5)  SPECIFIC TASKS.--The task force shall conduct such
3055research and hearings as the task force deems necessary to
3056achieve the purposes specified in subsection (4) and shall
3057develop information on relevant issues, including, but not
3058limited to, the following issues:
3059     (a)  Whether this state currently has sufficient hurricane
3060insurance capacity for mobile and manufactured homes to ensure
3061the continuation of a healthy, competitive marketplace, taking
3062into consideration private-sector and public-sector resources.
3063     (b)  Identifying the future demands on the hurricane
3064insurance capacity of this state, taking into account population
3065growth, coastal growth, and anticipated future hurricane
3066activity.
3067     (c)  Identifying how many mobile or manufactured homes are
3068occupied in this state, how many mobile or manufactured homes
3069are occupied by owners who also own the land to which the unit
3070is attached, the age or average age of mobile or manufactured
3071homes, the location of such homes, and the size of such homes.
3072     (d)  The extent to which the growth in insurance on mobile
3073or manufactured homes in Citizens Property Insurance Corporation
3074is attributable to insufficient insurance capacity.
3075     (e)  The extent to which the growth trends of Citizens
3076Property Insurance Corporation create long-term problems for
3077mobile and manufactured home owners in this state and for other
3078persons and businesses that depend on a viable market.
3079     (f)  The extent to which insurance discounts, credits, or
3080other rate differentials or reductions in the hurricane
3081insurance deductible for a mobile or manufactured homeowner who
3082takes mitigative measures would increase hurricane insurance
3083capacity for mobile or manufactured homeowners.
3084     (g)  The extent hurricane mitigation enhancements to mobile
3085or manufactured homes decreases the likelihood of damage from a
3086hurricane or decreases the amount of damage from a hurricane.
3087     (h)  The extent to which the building codes reduce the
3088likelihood of damage or amount of damage to mobile or
3089manufactured homes.
3090     (6)  REPORT AND RECOMMENDATIONS.--By January 1, 2007, the
3091task force shall provide a report containing findings relating
3092to the tasks identified in subsection (5) and recommendations
3093consistent with the purposes of this section and also consistent
3094with such findings. The task force shall submit the report to
3095the Governor, the Chief Financial Officer, the President of the
3096Senate, and the Speaker of the House of Representatives. The
3097task force may also submit such interim reports as the task
3098force deems appropriate.
3099     (7)  EXPIRATION.--The task force shall expire on January 2,
31002007.
3101     Section 22.  By January 1, 2007, the Office of Insurance
3102Regulation shall submit a report to the President of the Senate,
3103the Speaker of the House of Representatives, the minority party
3104leaders of the Senate and the House of Representatives, and the
3105chairs of the standing committees of the Senate and the House of
3106Representatives having jurisdiction over matters relating to
3107property and casualty insurance. In preparing the report, the
3108office shall consult with the Department of Highway Safety and
3109Motor Vehicles, the Department of Community Affairs, the Florida
3110Building Commission, the Florida Home Builders Association,
3111representatives of the mobile and manufactured home industry,
3112representatives of the property and casualty insurance industry,
3113and any other party the office determines is appropriate. The
3114report shall include findings and recommendations on the
3115insurability of attached or free standing structures to
3116residential homes, mobile, or manufactured homes, such as
3117carports or pool enclosures; the increase or decrease in
3118insurance costs associated with insuring such structures; the
3119feasibility of insuring such structures; the impact on
3120homeowners of not having insurance coverage for such structures;
3121the ability of mitigation measures relating to such structures
3122to reduce risk and loss; and such other related information as
3123the office determines is appropriate for the Legislature to
3124consider.
3125     Section 23.  (1)  The Office of Insurance Regulation, in
3126consultation with the Department of Community Affairs, the
3127Department of Financial Services, the Federal Alliance for Safe
3128Homes, the Florida Insurance Council, the Florida Home Builders
3129Association, the Florida Manufactured Housing Association, the
3130Risk and Insurance Department of Florida State University, and
3131the Institute for Business and Homes Safety, shall study and
3132develop a program that will provide an objective rating system
3133that will allow homeowners to evaluate the relative ability of
3134Florida properties to withstand the wind load from a sustained
3135severe tropical storm or hurricane.
3136     (2)  The rating system will be designed in a manner that is
3137easy to understand for the property owner, based on proven
3138readily verifiable mitigation techniques and devices, and able
3139to be implemented based on a visual inspection program. The
3140Department of Financial Services shall implement a pilot program
3141for use in the Florida Comprehensive Hurricane Damage Mitigation
3142Program.
3143     (3)  The Department shall provide a report to the Governor,
3144the President of the Senate, and the Speaker of the House of
3145Representatives by March 31, 2007, detailing the nature and
3146construction of the rating scale, its effectiveness based on
3147implementation in a pilot program, and an operational plan for
3148statewide implementation of the rating scale.
3149     Section 24.  (1)  For fiscal year 2006-2007, the sum of
3150$100 million is appropriated from the General Revenue Fund to
3151the Department of Financial Services for the Florida Hurricane
3152Damage Prevention Endowment as a nonrecurring appropriation for
3153the purposes specified in s. 215.558, Florida Statutes.
3154     (2)  The sum of $400 million is appropriated from the
3155General Revenue Fund to the Department of Financial Services as
3156a nonrecurring appropriation for the purposes specified in s.
3157215.5586, Florida Statutes.
3158     (3)  Funds provided in subsections (1) and (2) shall be
3159transferred by the department to the Florida Hurricane Damage
3160Prevention Trust Fund, as created in s. 215.5585, Florida
3161Statutes.
3162     (4)  For fiscal year 2006-2007, the recurring sum of $5
3163million is appropriated to the Department of Financial Services
3164from the Florida Hurricane Damage Prevention Trust Fund, Special
3165Category ? Financial Incentives for Hurricane Damage Prevention.
3166     (5)  For fiscal year 2006-2007, the nonrecurring sum of
3167$392.5 million is appropriated to the Department of Financial
3168Services from the Florida Hurricane Damage Prevention Trust
3169Fund, Special Category ? Florida Comprehensive Hurricane Damage
3170Mitigation Program. The department may spend up to 1 percent of
3171the funds appropriated to administer the program.
3172Notwithstanding s. 216.301, Florida Statutes, and pursuant to s.
3173216.351, Florida Statutes, any unexpended balance from this
3174appropriation shall be carried forward at the end of each fiscal
3175year until the 2010-2011 fiscal year. At the end of the 2010-
31762011 fiscal year, any obligated funds for qualified projects
3177that are not yet disbursed shall remain with the department to
3178be used for the purposes of this act. Any unobligated funds of
3179this appropriation shall revert to the Florida Hurricane Damage
3180Prevention Trust Fund at the end of the 2010-2011 fiscal year.
3181     (6)  For fiscal year 2006-2007, the nonrecurring sum of
3182$7.5 million is appropriated to the Department of Community
3183Affairs from the Florida Hurricane Damage Prevention Trust Fund,
3184Special Category ? Florida Comprehensive Hurricane Damage
3185Mitigation Program. The department may spend up to 5 percent of
3186the funds appropriated to administer the Manufactured Housing
3187and Mobile Home Hurricane Mitigation Program. Notwithstanding s.
3188216.301, Florida Statutes, and pursuant to s. 216.351, Florida
3189Statutes, any unexpended balance from this appropriation shall
3190be carried forward at the end of each fiscal year until the
31912010-2011 fiscal year. At the end of the 2010-2011 fiscal year,
3192any obligated funds for qualified projects that are not yet
3193disbursed shall remain with the department to be used for the
3194purposes of this act. Any unobligated funds of this
3195appropriation shall revert to the Florida Hurricane Damage
3196Prevention Trust Fund at the end of the 2010-2011 fiscal year.
3197     Section 25.  (1)  For fiscal year 2006-2007, the sum of
3198$920 million in nonrecurring funds is appropriated from the
3199General Revenue Fund to the Department of Financial Services for
3200transfer to the Citizens Property Insurance Corporation to avoid
3201regular assessments on assessable insurers, as authorized under
3202s. 627.351(6)(b)3.b., Florida Statutes, for the 2005 Plan Year
3203deficit. The board of governors of the corporation shall use
3204appropriated state moneys to fund that portion of the 2005 Plan
3205Year deficit which would result in the levying of regular
3206assessments in the commercial lines, personal lines, and high-
3207risk accounts. The transfer made by the department to the
3208corporation shall be limited to the amount of the total regular
3209assessments that were authorized by law to cover the 2005 Plan
3210Year deficit. Any unused and remaining funds in this
3211appropriation shall revert to the General Revenue Fund.
3212     (2)  The corporation shall amortize over a 10-year period
3213any emergency assessments resulting from the 2005 Plan Year
3214deficit.
3215     Section 26.  For fiscal year 2006-2007, the sums of
3216$250,000 in recurring funds and $425,000 in nonrecurring funds
3217are appropriated from the Insurance Regulatory Trust Fund in the
3218Department of Financial Services to the Office of Insurance
3219Regulation for the purpose of carrying out reporting and
3220administrative responsibilities of this act.
3221     Section 27.  Task Force on Hurricane Mitigation and
3222Hurricane Insurance for Mobile and Manufactured Homes.--
3223     (1)  TASK FORCE CREATED.--There is created the Task Force
3224on Hurricane Mitigation and Hurricane Insurance for Mobile and
3225Manufactured Homes.
3226     (2)  ADMINISTRATION.--The task force shall be
3227administratively housed within the Office of Insurance
3228Regulation but shall operate independently of any state officer
3229or agency. The office shall provide such administrative support
3230as the task force deems necessary to accomplish its mission and
3231shall provide necessary funding for the task force within the
3232office's existing resources. The Executive Office of the
3233Governor, the Department of Financial Services, the Office of
3234Insurance Regulation, the Department of Highway Safety and Motor
3235Vehicles, and the Department of Community Affairs shall provide
3236substantive staff support for the task force.
3237     (3)  MEMBERSHIP.--The members of the task force shall be
3238appointed as follows:
3239     (a)  The Governor shall appoint two members who have
3240expertise in financial matters, one of whom is a representative
3241of the mobile or manufactured home industry and one of whom is a
3242representative of insurance consumers.
3243     (b)  The Chief Financial Officer shall appoint two members
3244who have expertise in financial matters, one of whom is a
3245representative of a property insurer writing mobile or
3246manufactured homeowners insurance in this state and one of whom
3247is a representative of insurance agents.
3248     (c)  The President of the Senate shall appoint one member.
3249     (d)  The Speaker of the House of Representatives shall
3250appoint one member.
3251     (e)  The Commissioner of Insurance Regulation or his or her
3252designee shall serve as an ex officio voting member of the task
3253force.
3254     (f)  The Executive Director of Citizens Property Insurance
3255or his or her designee shall serve as an ex officio voting
3256member of the task force.
3257     (g)  The Chief Executive Officer of the Federal Alliance
3258for Safe Homes, Incorporated or his or her designee shall serve
3259as an ex officio voting member of the task force.
3260
3261Members of the task force shall serve without compensation but
3262may receive reimbursement for per diem and travel expenses as
3263provided in s. 112.061, Florida Statutes.
3264     (4)  PURPOSE AND INTENT.--The Legislature recognizes the
3265continued availability of hurricane insurance coverage for
3266mobile and manufactured home owners in this state is essential
3267to the state's economic survival. The Legislature further
3268recognizes hurricane mitigation measures and building codes may
3269reduce the likelihood or amount of damage to mobile or
3270manufactured homes in the event of a hurricane. The Legislature
3271further recognizes mobile and manufactured homes provide safe
3272and affordable housing to many residents of this state. The
3273purpose of the task force is to make recommendations to the
3274legislative and executive branches of this state's government
3275relating to the creation and maintenance of insurance capacity
3276in the private sector and public sector that is sufficient to
3277ensure that all mobile and manufactured home owners in this
3278state are able to obtain appropriate insurance coverage for
3279hurricane losses and relating to the effectiveness of hurricane
3280mitigation measures for mobile or manufactured homes as further
3281described in this section.
3282     (5)  SPECIFIC TASKS.--The task force shall conduct such
3283research and hearings as the task force deems necessary to
3284achieve the purposes specified in subsection (4) and shall
3285develop information on relevant issues, including, but not
3286limited to, the following issues:
3287     (a)  Whether this state currently has sufficient hurricane
3288insurance capacity for mobile and manufactured homes to ensure
3289the continuation of a healthy, competitive marketplace, taking
3290into consideration private-sector and public-sector resources.
3291     (b)  Identifying the future demands on the hurricane
3292insurance capacity of this state, taking into account population
3293growth, coastal growth, and anticipated future hurricane
3294activity.
3295     (c)  Identifying how many mobile or manufactured homes are
3296occupied in this state, how many mobile or manufactured homes
3297are occupied by owners who also own the land to which the unit
3298is attached, the age or average age of mobile or manufactured
3299homes, the location of such homes, and the size of such homes.
3300     (d)  The extent to which the growth in insurance on mobile
3301or manufactured homes in Citizens Property Insurance Corporation
3302is attributable to insufficient insurance capacity.
3303     (e)  The extent to which the growth trends of Citizens
3304Property Insurance Corporation create long-term problems for
3305mobile and manufactured home owners in this state and for other
3306persons and businesses that depend on a viable market.
3307     (f)  The extent to which insurance discounts, credits, or
3308other rate differentials or reductions in the hurricane
3309insurance deductible for a mobile or manufactured homeowner who
3310takes mitigative measures would increase hurricane insurance
3311capacity for mobile or manufactured homeowners.
3312     (g)  The extent hurricane mitigation enhancements to mobile
3313or manufactured homes decreases the likelihood of damage from a
3314hurricane or decreases the amount of damage from a hurricane.
3315     (h)  The extent to which the building codes reduce the
3316likelihood of damage or amount of damage to mobile or
3317manufactured homes.
3318     (6)  REPORT AND RECOMMENDATIONS.--By January 1, 2007, the
3319task force shall provide a report containing findings relating
3320to the tasks identified in subsection (5) and recommendations
3321consistent with the purposes of this section and also consistent
3322with such findings. The task force shall submit the report to
3323the Governor, the Chief Financial Officer, the President of the
3324Senate, and the Speaker of the House of Representatives. The
3325task force may also submit such interim reports as the task
3326force deems appropriate.
3327     (7)  EXPIRATION.--The task force shall expire on January 2,
33282007.
3329     Section 28.  By January 1, 2007, the Office of Insurance
3330Regulation shall submit a report to the President of the Senate,
3331the Speaker of the House of Representatives, the minority party
3332leaders of the Senate and the House of Representatives, and the
3333chairs of the standing committees of the Senate and the House of
3334Representatives having jurisdiction over matters relating to
3335property and casualty insurance. In preparing the report, the
3336office shall consult with the Department of Highway Safety and
3337Motor Vehicles, the Department of Community Affairs, the Florida
3338Building Commission, the Florida Home Builders Association,
3339representatives of the mobile and manufactured home industry,
3340representatives of the property and casualty insurance industry,
3341and any other party the office determines is appropriate. The
3342report shall include findings and recommendations on the
3343insurability of attached or free standing structures to
3344residential homes, mobile, or manufactured homes, such as
3345carports or pool enclosures; the increase or decrease in
3346insurance costs associated with insuring such structures; the
3347feasibility of insuring such structures; the impact on
3348homeowners of not having insurance coverage for such structures;
3349the ability of mitigation measures relating to such structures
3350to reduce risk and loss; and such other related information as
3351the office determines is appropriate for the Legislature to
3352consider.
3353     Section 29.  (1)  The Office of Insurance Regulation, in
3354consultation with the Department of Community Affairs, the
3355Department of Financial Services, the Federal Alliance for Safe
3356Homes, the Florida Insurance Council, the Florida Home Builders
3357Association, the Florida Manufactured Housing Association, the
3358Risk and Insurance Department of Florida State University, and
3359the Institute for Business and Homes Safety, shall study and
3360develop a program that will provide an objective rating system
3361that will allow homeowners to evaluate the relative ability of
3362Florida properties to withstand the wind load from a sustained
3363severe tropical storm or hurricane.
3364     (2)  The rating system will be designed in a manner that is
3365easy to understand for the property owner, based on proven
3366readily verifiable mitigation techniques and devices, and able
3367to be implemented based on a visual inspection program. The
3368Department of Financial Services shall implement a pilot program
3369for use in the Florida Comprehensive Hurricane Damage Mitigation
3370Program.
3371     (3)  The Department shall provide a report to the Governor,
3372the President of the Senate, and the Speaker of the House of
3373Representatives by March 31, 2007, detailing the nature and
3374construction of the rating scale, its effectiveness based on
3375implementation in a pilot program, and an operational plan for
3376statewide implementation of the rating scale.
3377     Section 30.  (1)  For fiscal year 2006-2007, the sum of
3378$100 million is appropriated from the General Revenue Fund to
3379the Department of Financial Services for the Florida Hurricane
3380Damage Prevention Endowment as a nonrecurring appropriation for
3381the purposes specified in s. 215.558, Florida Statutes.
3382     (2)  The sum of $400 million is appropriated from the
3383General Revenue Fund to the Department of Financial Services as
3384a nonrecurring appropriation for the purposes specified in s.
3385215.5586, Florida Statutes.
3386     (3)  Funds provided in subsections (1) and (2) shall be
3387transferred by the department to the Florida Hurricane Damage
3388Prevention Trust Fund, as created in s. 215.5585, Florida
3389Statutes.
3390     (4)  For fiscal year 2006-2007, the recurring sum of $5
3391million is appropriated to the Department of Financial Services
3392from the Florida Hurricane Damage Prevention Trust Fund, Special
3393Category ? Financial Incentives for Hurricane Damage Prevention.
3394     (5)  For fiscal year 2006-2007, the nonrecurring sum of
3395$392.5 million is appropriated to the Department of Financial
3396Services from the Florida Hurricane Damage Prevention Trust
3397Fund, Special Category ? Florida Comprehensive Hurricane Damage
3398Mitigation Program. The department may spend up to 1 percent of
3399the funds appropriated to administer the program.
3400Notwithstanding s. 216.301, Florida Statutes, and pursuant to s.
3401216.351, Florida Statutes, any unexpended balance from this
3402appropriation shall be carried forward at the end of each fiscal
3403year until the 2010-2011 fiscal year. At the end of the 2010-
34042011 fiscal year, any obligated funds for qualified projects
3405that are not yet disbursed shall remain with the department to
3406be used for the purposes of this act. Any unobligated funds of
3407this appropriation shall revert to the Florida Hurricane Damage
3408Prevention Trust Fund at the end of the 2010-2011 fiscal year.
3409     (6)  For fiscal year 2006-2007, the nonrecurring sum of
3410$7.5 million is appropriated to the Department of Community
3411Affairs from the Florida Hurricane Damage Prevention Trust Fund,
3412Special Category ? Florida Comprehensive Hurricane Damage
3413Mitigation Program. The department may spend up to 5 percent of
3414the funds appropriated to administer the Manufactured Housing
3415and Mobile Home Hurricane Mitigation Program. Notwithstanding s.
3416216.301, Florida Statutes, and pursuant to s. 216.351, Florida
3417Statutes, any unexpended balance from this appropriation shall
3418be carried forward at the end of each fiscal year until the
34192010-2011 fiscal year. At the end of the 2010-2011 fiscal year,
3420any obligated funds for qualified projects that are not yet
3421disbursed shall remain with the department to be used for the
3422purposes of this act. Any unobligated funds of this
3423appropriation shall revert to the Florida Hurricane Damage
3424Prevention Trust Fund at the end of the 2010-2011 fiscal year.
3425     Section 31.  (1)  For fiscal year 2006-2007, the sum of
3426$920 million in nonrecurring funds is appropriated from the
3427General Revenue Fund to the Department of Financial Services for
3428transfer to the Citizens Property Insurance Corporation to avoid
3429regular assessments on assessable insurers, as authorized under
3430s. 627.351(6)(b)3.b., Florida Statutes, for the 2005 Plan Year
3431deficit. The board of governors of the corporation shall use
3432appropriated state moneys to fund that portion of the 2005 Plan
3433Year deficit which would result in the levying of regular
3434assessments in the commercial lines, personal lines, and high-
3435risk accounts. The transfer made by the department to the
3436corporation shall be limited to the amount of the total regular
3437assessments that were authorized by law to cover the 2005 Plan
3438Year deficit. Any unused and remaining funds in this
3439appropriation shall revert to the General Revenue Fund.
3440     (2)  The corporation shall amortize over a 10-year period
3441any emergency assessments resulting from the 2005 Plan Year
3442deficit.
3443     Section 32.  For fiscal year 2006-2007, the sums of
3444$250,000 in recurring funds and $425,000 in nonrecurring funds
3445are appropriated from the Insurance Regulatory Trust Fund in the
3446Department of Financial Services to the Office of Insurance
3447Regulation for the purpose of carrying out reporting and
3448administrative responsibilities of this act.
3449     Section 33.  Except as otherwise expressly provided in this
3450act, this act shall take effect January 1, 2007.
3451
3452======= T I T L E  A M E N D M E N T ==========
3453     Remove the entire title and insert:
3454
A bill to be entitled
3455An act relating to property and casualty insurance;
3456amending s. 215.555, F.S.; revising findings and purposes;
3457revising definitions; changing the name of the fund to the
3458Florida Hurricane Insurance Fund; revising requirements
3459for reimbursement contracts; providing requirements,
3460procedures, and methodologies for policyholders to pay
3461premiums to insurers, insurers to remit premiums to the
3462fund, insurers to reimburse policyholders for hurricane
3463losses, and the state to reimburse insurers from the fund
3464for payments to policyholders; deleting a required annual
3465appropriation from the investment income of the Florida
3466Hurricane Catastrophe Fund for certain purposes; providing
3467coverage limitations; providing exceptions; providing for
3468discounted premiums to certain insurers under certain
3469circumstances; deleting conflicting provisions; revising
3470reimbursement premium provisions to conform; renaming the
3471Florida Hurricane Catastrophe Fund Finance Corporation as
3472the Florida Hurricane Insurance Fund Finance Corporation;
3473making conforming changes; creating s. 215.558, F.S.;
3474creating the Florida Hurricane Damage Prevention
3475Endowment; providing a purpose and legislative intent;
3476providing definitions; providing requirements and
3477authority for investment of endowment assets by the State
3478Board of Administration; requiring a report to the
3479Legislature; providing for payment of the board's
3480investment services' costs and fees from the endowment;
3481providing requirements of the Department of Financial
3482Services in providing financial incentives for residential
3483hurricane damage prevention activities; providing for an
3484interest-free loan program; providing program criteria and
3485requirements; creating an advisory council for certain
3486purposes; providing for appointment of members; requiring
3487members to serve without compensation; providing for per
3488diem and travel expenses; creating s. 215.5586, F.S.;
3489establishing the Florida Comprehensive Hurricane Damage
3490Mitigation Program within the Department of Financial
3491Services; providing qualifications for the program
3492administrator; providing program components and
3493requirements; providing for wind certification and
3494hurricane mitigation inspections; providing inspection
3495requirements; providing inspector eligibility
3496requirements; providing for grants; providing grant
3497requirements; providing for loans; providing public
3498education and consumer awareness requirements; creating an
3499advisory council; providing for appointment of members;
3500specifying service without compensation; providing for per
3501diem and travel expense reimbursements; requiring the
3502department to adopt rules; amending. s. 215.559, F.S.;
3503creating the Manufactured Housing and Mobile Home
3504Hurricane Mitigation Program for certain purposes;
3505requiring the Department of Community Affairs to develop
3506the program in consultation with certain entities;
3507specifying requirements of the program; specifying the
3508program as a matching grant program for improvement of
3509mobile homes and manufactured homes; providing for
3510distribution of the grants to the Department of Community
3511Affairs for certain purposes; requiring Citizens Property
3512Insurance Corporation to grant certain insurance
3513discounts, credits, rate differentials, or deductible
3514reductions for property insurance premiums for certain
3515manufactured home or mobile home owners; specifying
3516criteria for such premiums; requiring a program report
3517each year to the Governor and Legislature; providing
3518report requirements; amending ss. 215.556, 624.424,
3519624.5091, 627.062, 627.0628, 627.0629, 627.351, 627.701,
3520and 627.7077, F.S., to conform; providing a for the sunset
3521of Citizens Property Insurance Corporation wind-storm
3522coverage; providing for the use of sales tax revenues
3523generated as estimated by the Office of Economic and
3524Demographic Research; amending and renumbering ss.
3525350.061, 350.0611, and 350.0612, F.S.; amending provisions
3526relating to the Office of Insurance Regulation; amending
3527s. 408.40, F.S.; correcting a cross-reference; amending s.
3528109(3), ch. 2000-141, Laws of Florida; deleting a
3529limitation subjecting certain portions of coastal counties
3530to certain debris requirements adopted by the Florida
3531Building Commission; creating the Task Force on Hurricane
3532Mitigation and Hurricane Insurance for Mobile and
3533Manufactured Homes; providing for administration by the
3534office; specifying additional agency administrative staff;
3535providing for appointment of task force members; requiring
3536members to serve without compensation; providing for per
3537diem and travel expenses; providing purpose and intent;
3538requiring the task force to address specified issues;
3539requiring a report to the Governor, Chief Financial
3540Officer, and Legislature; providing for expiration of the
3541task force; requiring the Office of Insurance Regulation
3542to submit reports to the Legislature relating to the
3543insurability of certain attached or free standing
3544structures ; providing report requirements; providing
3545duties of the office; providing appropriations; specifying
3546uses and purposes of appropriations; providing effective
3547dates.


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