Amendment
Bill No. 7225

Amendment No. 233291

CHAMBER ACTION
Senate		House
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1	Representative Taylor offered the following:
2
3	Amendment (with title amendment)
4	Remove everything after the enacting clause and insert:
5
6	Section 1.  Section 215.555, Florida Statutes, is amended
7	to read:
8	215.555  Florida Hurricane Insurance Catastrophe Fund.--
9	(1)  FINDINGS AND PURPOSE.--The Legislature finds and
10	declares as follows:
11	(a)  There is a compelling state interest in maintaining a
12	viable and orderly private sector market for property insurance
13	in this state. To the extent that the private sector is unable
14	to maintain a viable and orderly market for property insurance
15	in this state, state actions to maintain such a viable and
16	orderly market are valid and necessary exercises of the police
17	power.
18	(b)  As a result of unprecedented levels of catastrophic
19	insured losses in recent years, and especially as a result of
20	Hurricane Andrew and the 2004 and 2005 hurricane seasons,
21	numerous insurers have determined that in order to protect their
22	solvency, it is necessary for them to reduce their exposure to
23	hurricane losses. Also as a result of these events, world
24	reinsurance capacity has significantly contracted, increasing
25	the pressure on insurers to reduce their catastrophic exposures.
26	(c)  Mortgages require reliable property insurance, and the
27	unavailability of reliable property insurance would therefore
28	make most real estate transactions impossible. In addition, the
29	public health, safety, and welfare demand that structures
30	damaged or destroyed in a catastrophe be repaired or
31	reconstructed as soon as possible. Therefore, the inability of
32	the private sector insurance and reinsurance markets to maintain
33	sufficient capacity to enable residents of this state to obtain
34	property insurance coverage in the private sector endangers the
35	economy of the state and endangers the public health, safety,
36	and welfare. Accordingly, state action to correct for this
37	inability of the private sector constitutes a valid and
38	necessary public and governmental purpose.
39	(d)  The insolvencies and financial impairments resulting
40	from Hurricane Andrew and the 2004 and 2005 hurricane seasons
41	demonstrate that many property insurers are unable or unwilling
42	to maintain reserves, surplus, and reinsurance sufficient to
43	enable the insurers to pay all claims in full in the event of a
44	catastrophe. State action is therefore necessary to protect the
45	public from an insurer's unwillingness or inability to maintain
46	sufficient reserves, surplus, and reinsurance.
47	(e)  A state program to provide a stable and ongoing source
48	of coverage reimbursement to insurers for a substantial portion
49	of their catastrophic hurricane losses for citizens of this
50	state will create additional insurance capacity sufficient to
51	ameliorate the current dangers to the state's economy and to the
52	public health, safety, and welfare.
53	(f)  It is essential to the functioning of a state program
54	to increase insurance capacity that revenues received be exempt
55	from federal taxation. It is therefore the intent of the
56	Legislature that this program be structured as a state trust
57	fund under the direction and control of the State Board of
58	Administration and operate exclusively for the purpose of
59	protecting and advancing the state's interest in maintaining
60	insurance capacity in this state.
61	(g)  Hurricane Andrew, which caused insured and uninsured
62	losses in excess of $20 billion, and the 2004 hurricane season,
63	which caused insured losses in excess of $42 billion, will
64	likely not be the last major windstorm to strike Florida.
65	Recognizing that a future wind catastrophe could cause damages
66	in excess of $60 billion, especially if a major urban area or
67	series of urban areas were hit, it is the intent of the
68	Legislature to balance equitably its concerns about mitigation
69	of hurricane impact, insurance affordability and availability,
70	and the risk of insurer and joint underwriting association
71	insolvency, as well as assessment and bonding limitations.
72	(h)  Wind-storm coverage provided by Citizens Property
73	Insurance Corporation has proven to be ineffective for
74	homeowners in Florida. Following the 2004 and 2005 hurricane
75	seasons, Citizens Property Insurance Corporation has levied
76	assessments that have caused enormous financial constraints to
77	all homeowners in Florida.
78	(2)  DEFINITIONS.--As used in this section:
79	(a)(m)  "Actual claims-paying capacity" means the sum of
80	the balance of the fund as of December 31 of a contract year,
81	plus any reinsurance purchased by the fund, plus the amount the
82	board is able to raise through the issuance of revenue bonds
83	under subsection (6).
84	(b)(a)  "Actuarially indicated" means, with respect to
85	premiums paid to by insurers for reimbursement provided by the
86	fund, an amount determined according to principles of actuarial
87	science to be adequate, but not excessive, in the aggregate, to
88	pay current and future obligations and expenses of the fund,
89	including additional amounts if needed to pay debt service on
90	revenue bonds issued under this section and to provide required
91	debt service coverage in excess of the amounts required to pay
92	actual debt service on revenue bonds issued under subsection
93	(6), and determined according to principles of actuarial science
94	to reflect each insurer's relative exposure to hurricane losses.
95	(c)(g)  "Bond" means any bond, debenture, note, or other
96	evidence of financial indebtedness issued under this section.
97	(d)(n)  "Corporation" means the Florida Hurricane Insurance
98	Catastrophe Fund Finance Corporation created in paragraph
99	(6)(d).
100	(e)(b)  "Covered event" means any one storm declared to be
101	a hurricane by the National Hurricane Center, which storm causes
102	insured losses in this state.
103	(f)(c)  "Covered policy" means any hurricane insurance
104	policy covering residential property in this state, including,
105	but not limited to, any homeowner's, mobile home owner's, farm
106	owner's, condominium association, condominium unit owner's,
107	tenant's, or apartment building policy, or any other policy
108	covering a residential structure or its contents issued by any
109	authorized insurer, including the Citizens Property Insurance
110	Corporation and any joint underwriting association or similar
111	entity created pursuant to law. The term "covered policy"
112	includes any collateral protection insurance policy covering
113	personal residences which protects both the borrower's and the
114	lender's financial interests, in an amount at least equal to the
115	coverage for the dwelling in place under the lapsed homeowner's
116	policy, if such policy can be accurately reported as required in
117	subsection (5). Additionally, covered policies include policies
118	covering the peril of wind removed from the Florida Residential
119	Property and Casualty Joint Underwriting Association or from the
120	Citizens Property Insurance Corporation, created pursuant to s.
121	627.351(6), or from the Florida Windstorm Underwriting
122	Association, created pursuant to s. 627.351(2), by an authorized
123	insurer under the terms and conditions of an executed assumption
124	agreement between the authorized insurer and such association or
125	Citizens Property Insurance Corporation. Each assumption
126	agreement between the association and such authorized insurer or
127	Citizens Property Insurance Corporation must be approved by the
128	Office of Insurance Regulation prior to the effective date of
129	the assumption, and the Office of Insurance Regulation must
130	provide written notification to the board within 15 working days
131	after such approval. "Covered policy" does not include any
132	policy that excludes wind coverage or hurricane coverage or any
133	reinsurance agreement and does not include any policy otherwise
134	meeting this definition which is issued by a surplus lines
135	insurer or a reinsurer. All commercial residential excess
136	policies and all deductible buy-back policies that, based on
137	sound actuarial principles, require individual ratemaking shall
138	be excluded by rule if the actuarial soundness of the fund is
139	not jeopardized. For this purpose, the term "excess policy"
140	means a policy that provides insurance protection for large
141	commercial property risks and that provides a layer of coverage
142	above a primary layer insured by another insurer.
143	(g)(h)  "Debt service" means the amount required in any
144	fiscal year to pay the principal of, redemption premium, if any,
145	and interest on revenue bonds and any amounts required by the
146	terms of documents authorizing, securing, or providing liquidity
147	for revenue bonds necessary to maintain in effect any such
148	liquidity or security arrangements.
149	(h)(i)  "Debt service coverage" means the amount, if any,
150	required by the documents under which revenue bonds are issued,
151	which amount is to be received in any fiscal year in excess of
152	the amount required to pay debt service for such fiscal year.
153	(i)(l)  "Estimated claims-paying capacity" means the sum of
154	the projected year-end balance of the fund as of December 31 of
155	a contract year, plus any reinsurance purchased by the fund,
156	plus the board's estimate of the board's borrowing capacity.
157	(j)  "Local government" means a unit of general purpose
158	local government as defined in s. 218.31(2).
159	(k)(d)  "Losses" means direct incurred losses under covered
160	policies, which shall include losses for additional living
161	expenses not to exceed 40 percent of the insured value of a
162	residential structure or its contents and shall exclude loss
163	adjustment expenses. "Losses" does not include losses for fair
164	rental value, loss of use, or business interruption losses.
165	(l)(k)  "Pledged revenues" means all or any portion of
166	revenues to be derived from reimbursement premiums under
167	subsection (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
170	insurer is not entitled to reimbursement from the fund. An
171	insurer's retention shall be calculated as follows:
172	1.  The board shall calculate and report to each insurer
173	the retention multiples for that year. For the contract year
174	beginning June 1, 2005, the retention multiple shall be equal to
175	$4.5 billion divided by the total estimated reimbursement
176	premium for the contract year; for subsequent years, the
177	retention multiple shall be equal to $4.5 billion, adjusted
178	based upon the reported exposure from the prior contract year to
179	reflect the percentage growth in exposure to the fund for
180	covered policies since 2004, divided by the total estimated
181	reimbursement premium for the contract year. Total reimbursement
182	premium for purposes of the calculation under this subparagraph
183	shall be estimated using the assumption that all insurers have
184	selected the 90-percent coverage level.
185	2.  The retention multiple as determined under subparagraph
186	1. shall be adjusted to reflect the coverage level elected by
187	the insurer. For insurers electing the 90-percent coverage
188	level, the adjusted retention multiple is 100 percent of the
189	amount determined under subparagraph 1. For insurers electing
190	the 75-percent coverage level, the retention multiple is 120
191	percent of the amount determined under subparagraph 1. For
192	insurers electing the 45-percent coverage level, the adjusted
193	retention multiple is 200 percent of the amount determined under
194	subparagraph 1.
195	3.  An insurer shall determine its provisional retention by
196	multiplying its provisional reimbursement premium by the
197	applicable adjusted retention multiple and shall determine its
198	actual retention by multiplying its actual reimbursement premium
199	by the applicable adjusted retention multiple.
200	4.  For insurers who experience multiple covered events
201	causing loss during the contract year, beginning June 1, 2005,
202	each insurer's full retention shall be applied to each of the
203	covered events causing the two largest losses for that insurer.
204	For each other covered event resulting in losses, the insurer's
205	retention shall be reduced to one-third of the full retention.
206	The reimbursement contract shall provide for the reimbursement
207	of losses for each covered event based on the full retention
208	with adjustments made to reflect the reduced retentions after
209	January 1 of the contract year provided the insurer reports its
210	losses as specified in the reimbursement contract.
211	(m)(f)  "Workers' compensation" includes both workers'
212	compensation and excess workers' compensation insurance.
213	(3)  FLORIDA HURRICANE INSURANCE CATASTROPHE FUND
214	CREATED.--There is created the Florida Hurricane Insurance
215	Catastrophe Fund to be administered by the State Board of
216	Administration. Moneys in the fund may not be expended, loaned,
217	or appropriated except to pay obligations of the fund arising
218	out of reimbursement contracts entered into under subsection
219	(4), payment of debt service on revenue bonds issued under
220	subsection (6), costs of the mitigation program under subsection
221	(7), costs of procuring reinsurance, and costs of administration
222	of the fund. The board shall invest the moneys in the fund
223	pursuant to ss. 215.44-215.52. Except as otherwise provided in
224	this section, earnings from all investments shall be retained in
225	the fund. The board may employ or contract with such staff and
226	professionals as the board deems necessary for the
227	administration of the fund. The board may adopt such rules as
228	are reasonable and necessary to implement this section and shall
229	specify interest due on any delinquent remittances, which
230	interest may not exceed the fund's rate of return plus 5
231	percent. Such rules must conform to the Legislature's specific
232	intent in establishing the fund as expressed in subsection (1),
233	must enhance the fund's potential ability to respond to claims
234	for covered events, must contain general provisions so that the
235	rules can be applied with reasonable flexibility so as to
236	accommodate insurers in situations of an unusual nature or where
237	undue hardship may result, except that such flexibility may not
238	in any way impair, override, supersede, or constrain the public
239	purpose of the fund, and must be consistent with sound insurance
240	practices. The board may, by rule, provide for the exemption
241	from subsections (4) and (5) of insurers writing covered
242	policies with less than $10 million in aggregate exposure for
243	covered policies if the exemption does not affect the actuarial
244	soundness of the fund.
245	(4)  REIMBURSEMENT CONTRACTS.--
246	(a)  The board shall enter into a contract with each
247	insurer writing hurricane-covered covered policies in this state
248	to provide to the insurer the reimbursement described in
249	paragraphs (b) and (d), in exchange for the reimbursement
250	premium paid into the fund under subsection (5). As a condition
251	of doing business in this state, each such insurer shall enter
252	into such a contract.
253	(b)1.  The contract shall contain a promise by the board to
254	reimburse the insurer for losses as provided in this paragraph
255	as a result of a covered event 45 percent, 75 percent, or 90
256	percent of its losses from each covered event in excess of the
257	insurer's retention, plus 5 percent of the reimbursed losses to
258	cover loss adjustment expenses.
259	2.  The insurer shall provide hurricane coverage for any
260	policyholder selecting this coverage. The insurer shall collect
261	premiums from policyholders as determined by the state and remit
262	premium collections to the state to be deposited in the Florida
263	Hurricane Insurance Fund must elect one of the percentage
264	coverage levels specified in this paragraph and may, upon
265	renewal of a reimbursement contract, elect a lower percentage
266	coverage level if no revenue bonds issued under subsection (6)
267	after a covered event are outstanding, or elect a higher
268	percentage coverage level, regardless of whether or not revenue
269	bonds are outstanding. All members of an insurer group must
270	elect the same percentage coverage level. Any joint underwriting
271	association, risk apportionment plan, or other entity created
272	under s. 627.351 must elect the 90-percent coverage level.
273	3.  The contract shall provide that reimbursement coverage
274	for any hurricane loss must be paid to the insurer. A
275	policyholder shall submit all claims to the insurer for payment
276	for all related losses.
277	4.  A policyholder shall pay hurricane peril premiums to
278	the insurer, and the insurer shall remit collected premiums to
279	the state.
280	5.  An insurer shall contract with the state to provide
281	hurricane peril coverage to policyholders and provide coverage
282	directly to policyholders for losses as a result of a covered
283	event. The state shall reimburse the insurer from the Florida
284	Hurricane Insurance Fund for all reimbursements made by the
285	insurer to policyholders as a result of a covered event.
286	6.  Premiums paid by a policyholder must provide, through
287	the fund, a maximum coverage of $100,000.
288	7.  A policyholder may select hurricane deductibles of 1,
289	2, 5, or 10 percent.
290	8.  An insurer may choose to provide additional coverage
291	beyond the fund's coverage of $100,000 for its policyholders.
292	9.  An insurer shall provide claims adjustment and
293	reimbursement for losses directly to its policyholders. Once
294	reimbursement amounts have been determined for policyholders, an
295	insurer shall submit a request for reimbursement through the
296	fund for payments made to policyholders for hurricane loss.
297	Insurers will be reimbursed for 90 percent of adjusted hurricane
298	losses sustained by policyholders.
299	10.  The $100,000 maximum coverage shall be adjusted every
300	3 years based on the home rate index.
301	11.  Discounted premiums shall be provided by the fund for
302	an insurer who encourages its policyholders to engage in loss
303	mitigation following damage to or loss of property amounts shall
304	not be reduced by reinsurance paid or payable to the insurer
305	from other sources.
306	(c)1.  The contract shall also provide that the obligation
307	of the board with respect to all contracts covering a particular
308	contract year shall not exceed the actual claims-paying capacity
309	of the fund up to a limit of $15 billion for that contract year
310	adjusted based upon the reported exposure from the prior
311	contract year to reflect the percentage growth in exposure to
312	the fund for covered policies since 2003, provided the dollar
313	growth in the limit may not increase in any year by an amount
314	greater than the dollar growth of the cash balance which
315	occurred over the prior calendar year.
316	2.  In May before the start of the upcoming contract year
317	and in October during the contract year, the board shall publish
318	in the Florida Administrative Weekly a statement of the fund's
319	estimated borrowing capacity and the projected balance of the
320	fund as of December 31. After the end of each calendar year, the
321	board shall notify insurers of the estimated borrowing capacity
322	and the balance of the fund as of December 31 to provide
323	insurers with data necessary to assist them in determining their
324	actuarially sound premiums retention and projected payout from
325	the fund for loss reimbursement purposes. In conjunction with
326	the development of the premium formula, as provided for in
327	subsection (5), the board shall publish factors or multiples
328	that assist insurers in determining their retention and
329	projected payout for the next contract year. For all regulatory
330	and reinsurance purposes, an insurer may calculate its projected
331	payout from the fund as its share of the total fund premium for
332	the current contract year multiplied by the sum of the projected
333	balance of the fund as of December 31 and the estimated
334	borrowing capacity for that contract year as reported under this
335	subparagraph.
336	(d)1.  For purposes of determining potential liability and
337	to aid in the sound administration of the fund, the contract
338	shall require each insurer to report such insurer's losses from
339	each covered event on an interim basis, as directed by the
340	board. The contract shall require the insurer to report to the
341	board no later than December 31 of each year, and quarterly
342	thereafter, its reimbursable losses from covered events for the
343	year. The contract shall require the board to determine and pay,
344	as soon as practicable after receiving these reports of
345	reimbursable losses, the initial amount of reimbursement due and
346	adjustments to this amount based on later loss information. The
347	adjustments to reimbursement amounts shall require the board to
348	pay, or the insurer to return, amounts reflecting the most
349	recent calculation of losses.
350	2.  In determining reimbursements pursuant to this
351	subsection, the contract shall provide that the board shall:
352	a.  First reimburse insurers within 90 days after reporting
353	policyholder-paid losses as a result of a covered event writing
354	covered policies, which insurers are in full compliance with
355	this section and have petitioned the Office of Insurance
356	Regulation and qualified as limited apportionment companies
357	under s. 627.351(2)(b)3. The amount of such reimbursement shall
358	be the lesser of $10 million or an amount equal to 10 times the
359	insurer's reimbursement premium for the current year. The amount
360	of reimbursement paid under this sub-subparagraph may not exceed
361	the full amount of reimbursement promised in the reimbursement
362	contract. This sub-subparagraph does not apply with respect to
363	any contract year in which the year-end projected cash balance
364	of the fund, exclusive of any bonding capacity of the fund,
365	exceeds $2 billion. Only one member of any insurer group may
366	receive reimbursement under this sub-subparagraph.
367	b.  Next pay to each insurer such insurer's projected
368	payout, which is the amount of reimbursement it is owed, up to
369	an amount equal to the insurer's share of the actual premium
370	paid for that contract year, multiplied by the actual claims-
371	paying capacity available for that contract year; provided,
372	entities created pursuant to s. 627.351 shall be further
373	reimbursed in accordance with sub-subparagraph c.
374	c.  Thereafter, establish the prorated reimbursement level
375	at the highest level for which any remaining fund balance or
376	bond proceeds are sufficient to reimburse entities created
377	pursuant to s. 627.351 based on reimbursable losses exceeding
378	the amounts payable pursuant to sub-subparagraph b. for the
379	current contract year.
380	(e)1.  Except as provided in subparagraphs 2. and 3., the
381	contract shall provide that if an insurer demonstrates to the
382	board that it is likely to qualify for reimbursement under the
383	contract, and demonstrates to the board that the immediate
384	receipt of moneys from the board is likely to prevent the
385	insurer from becoming insolvent, the board shall advance the
386	insurer, at market interest rates, the amounts necessary to
387	maintain the solvency of the insurer, up to 50 percent of the
388	board's estimate of the reimbursement due the insurer. The
389	insurer's reimbursement shall be reduced by an amount equal to
390	the amount of the advance and interest thereon.
391	2.  With respect only to an entity created under s.
392	627.351, the contract shall also provide that the board may,
393	upon application by such entity, advance to such entity, at
394	market interest rates, up to 90 percent of the lesser of:
395	a.  The board's estimate of the amount of reimbursement due
396	to such entity; or
397	b.  The entity's share of the actual reimbursement premium
398	paid for that contract year, multiplied by the currently
399	available liquid assets of the fund. In order for the entity to
400	qualify for an advance under this subparagraph, the entity must
401	demonstrate to the board that the advance is essential to allow
402	the entity to pay claims for a covered event and the board must
403	determine that the fund's assets are sufficient and are
404	sufficiently liquid to allow the board to make an advance to the
405	entity and still fulfill the board's reimbursement obligations
406	to other insurers. The entity's final reimbursement for any
407	contract year in which an advance has been made under this
408	subparagraph must be reduced by an amount equal to the amount of
409	the advance and any interest on such advance. In order to
410	determine what amounts, if any, are due the entity, the board
411	may require the entity to report its exposure and its losses at
412	any time to determine retention levels and reimbursements
413	payable.
414	3.  The contract shall also provide specifically and solely
415	with respect to any limited apportionment company under s.
416	627.351(2)(b)3. that the board may, upon application by such
417	company, advance to such company the amount of the estimated
418	reimbursement payable to such company as calculated pursuant to
419	paragraph (d), at market interest rates, if the board determines
420	that the fund's assets are sufficient and are sufficiently
421	liquid to permit the board to make an advance to such company
422	and at the same time fulfill its reimbursement obligations to
423	the insurers that are participants in the fund. Such company's
424	final reimbursement for any contract year in which an advance
425	pursuant to this subparagraph has been made shall be reduced by
426	an amount equal to the amount of the advance and interest
427	thereon. In order to determine what amounts, if any, are due to
428	such company, the board may require such company to report its
429	exposure and its losses at such times as may be required to
430	determine retention levels and loss reimbursements payable.
431	(e)(f)  In order to ensure that insurers have properly
432	reported the insured values on which the reimbursement premium
433	is based and to ensure that insurers have properly reported the
434	losses for which reimbursements have been made, the board shall
435	inspect, examine, and verify the records of each insurer's
436	covered policies at such times as the board deems appropriate
437	and according to standards established by rule for the specific
438	purpose of validating the accuracy of exposures and losses
439	required to be reported under the terms and conditions of the
440	reimbursement contract. The costs of the examinations shall be
441	borne by the board. However, in order to remove any incentive
442	for an insurer to delay preparations for an examination, the
443	board shall be reimbursed by the insurer for any examination
444	expenses incurred in addition to the usual and customary costs
445	of the examination, which additional expenses were incurred as a
446	result of an insurer's failure, despite proper notice, to be
447	prepared for the examination or as a result of an insurer's
448	failure to provide requested information while the examination
449	is in progress. If the board finds any insurer's records or
450	other necessary information to be inadequate or inadequately
451	posted, recorded, or maintained, the board may employ experts to
452	reconstruct, rewrite, record, post, or maintain such records or
453	information, at the expense of the insurer being examined, if
454	such insurer has failed to maintain, complete, or correct such
455	records or deficiencies after the board has given the insurer
456	notice and a reasonable opportunity to do so. Any information
457	contained in an examination report, which information is
458	described in s. 215.557, is confidential and exempt from the
459	provisions of s. 119.07(1) and s. 24(a), Art. I of the State
460	Constitution, as provided in s. 215.557. Nothing in this
461	paragraph expands the exemption in s. 215.557.
462	(f)(g)  The contract shall provide that in the event of the
463	insolvency of an insurer, the fund shall pay directly to the
464	Florida Insurance Guaranty Association for the benefit of
465	Florida policyholders of the insurer the net amount of all
466	reimbursement moneys owed to the insurer. As used in this
467	paragraph, the term "net amount of all reimbursement moneys"
468	means that amount which remains after reimbursement for:
469	1.  Preliminary or duplicate payments owed to private
470	reinsurers or other inuring reinsurance payments to private
471	reinsurers that satisfy statutory or contractual obligations of
472	the insolvent insurer attributable to covered events to such
473	reinsurers; or
474	2.  Funds owed to a bank or other financial institution to
475	cover obligations of the insolvent insurer under a credit
476	agreement that assists the insolvent insurer in paying claims
477	attributable to covered events.
478
479	The private reinsurers, banks, or other financial institutions
480	shall be reimbursed or otherwise paid prior to payment to the
481	Florida Insurance Guaranty Association, notwithstanding any law
482	to the contrary. The guaranty association shall pay all claims
483	up to the maximum amount permitted by chapter 631; thereafter,
484	any remaining moneys shall be paid pro rata to claims not fully
485	satisfied. This paragraph does not apply to a joint underwriting
486	association, risk apportionment plan, or other entity created
487	under s. 627.351.
488	(5)  REIMBURSEMENT PREMIUMS.--
489	(a)  Each reimbursement contract shall require the insurer
490	to annually pay to the fund an actuarially indicated premium for
491	the reimbursement of hurricane losses.
492	(b)  The State Board of Administration shall select an
493	independent consultant to develop a formula for determining the
494	actuarially indicated premium to be paid to the fund. The
495	formula shall specify, for each zip code or other limited
496	geographical area, the amount of premium to be paid by an
497	insurer for each $1,000 of insured value under covered policies
498	in that zip code or other area. In establishing premiums, the
499	board shall consider the coverage elected under paragraph (4)(b)
500	and any factors that tend to enhance the actuarial
501	sophistication of ratemaking for the fund, including
502	deductibles, type of construction, type of coverage provided,
503	relative concentration of risks, loss mitigation efforts, a
504	factor providing for more rapid cash buildup in the fund until
505	the fund capacity for a single hurricane season is fully funded,
506	and other such factors deemed by the board to be appropriate.
507	The formula may provide for a procedure to determine the
508	premiums to be paid by new insurers that begin writing covered
509	policies after the beginning of a contract year, taking into
510	consideration when the insurer starts writing covered policies,
511	the potential exposure of the insurer, the potential exposure of
512	the fund, the administrative costs to the insurer and to the
513	fund, and any other factors deemed appropriate by the board. The
514	formula must be approved by unanimous vote of the board. The
515	board may, at any time, revise the formula pursuant to the
516	procedure provided in this paragraph.
517	(c)  No later than September 1 of each year, each insurer
518	shall notify the board of its insured values under covered
519	policies by zip code, as of June 30 of that year. On the basis
520	of these reports, the board shall calculate the premium due from
521	the insurer, based on the formula adopted under paragraph (b).
522	The insurer shall pay the required annual premium pursuant to a
523	periodic payment plan specified in the contract. The board shall
524	provide for payment of reimbursement premium in periodic
525	installments and for the adjustment of provisional premium
526	installments collected prior to submission of the exposure
527	report to reflect data in the exposure report. The board shall
528	collect interest on late reimbursement premium payments
529	consistent with the assumptions made in developing the premium
530	formula in accordance with paragraph (b).
531	(d)  All premiums paid to the fund under reimbursement
532	contracts shall be treated as premium for approved reinsurance
533	for all accounting and regulatory purposes.
534	(6)  REVENUE BONDS.--
535	(a)  General provisions.--
536	1.  Upon the occurrence of a hurricane and a determination
537	that the moneys in the fund are or will be insufficient to pay
538	reimbursement at the levels promised in the reimbursement
539	contracts, the board may take the necessary steps under
540	paragraph (c) or paragraph (d) for the issuance of revenue bonds
541	for the benefit of the fund. The proceeds of such revenue bonds
542	may be used to make reimbursement payments under reimbursement
543	contracts; to refinance or replace previously existing
544	borrowings or financial arrangements; to pay interest on bonds;
545	to fund reserves for the bonds; to pay expenses incident to the
546	issuance or sale of any bond issued under this section,
547	including costs of validating, printing, and delivering the
548	bonds, costs of printing the official statement, costs of
549	publishing notices of sale of the bonds, and related
550	administrative expenses; or for such other purposes related to
551	the financial obligations of the fund as the board may
552	determine. The term of the bonds may not exceed 30 years. The
553	board may pledge or authorize the corporation to pledge all or a
554	portion of all revenues under subsection (5) and under paragraph
555	(b) to secure such revenue bonds and the board may execute such
556	agreements between the board and the issuer of any revenue bonds
557	and providers of other financing arrangements under paragraph
558	(7)(b) as the board deems necessary to evidence, secure,
559	preserve, and protect such pledge. If reimbursement premiums
560	received under subsection (5) or earnings on such premiums are
561	used to pay debt service on revenue bonds, such premiums and
562	earnings shall be used only after the use of the moneys derived
563	from assessments under paragraph (b). The funds, credit,
564	property, or taxing power of the state or political subdivisions
565	of the state shall not be pledged for the payment of such bonds.
566	The board may also enter into agreements under paragraph (c) or
567	paragraph (d) for the purpose of issuing revenue bonds in the
568	absence of a hurricane upon a determination that such action
569	would maximize the ability of the fund to meet future
570	obligations.
571	2.  The Legislature finds and declares that the issuance of
572	bonds under this subsection is for the public purpose of paying
573	the proceeds of the bonds to insurers, thereby enabling insurers
574	to pay the claims of policyholders to assure that policyholders
575	are able to pay the cost of construction, reconstruction,
576	repair, restoration, and other costs associated with damage to
577	property of policyholders of covered policies after the
578	occurrence of a hurricane. Revenue bonds may not be issued under
579	this subsection until validated under chapter 75. The validation
580	of at least the first obligations incurred pursuant to this
581	subsection shall be appealed to the Supreme Court, to be handled
582	on an expedited basis.
583	(b)  Emergency assessments.--
584	1.  If the board determines that the amount of revenue
585	produced under subsection (5) is insufficient to fund the
586	obligations, costs, and expenses of the fund and the
587	corporation, including repayment of revenue bonds and that
588	portion of the debt service coverage not met by reimbursement
589	premiums, the board shall direct the Office of Insurance
590	Regulation to levy, by order, an emergency assessment on direct
591	premiums for all property and casualty lines of business in this
592	state, including property and casualty business of surplus lines
593	insurers regulated under part VIII of chapter 626, but not
594	including any workers' compensation premiums or medical
595	malpractice premiums. As used in this subsection, the term
596	"property and casualty business" includes all lines of business
597	identified on Form 2, Exhibit of Premiums and Losses, in the
598	annual statement required of authorized insurers by s. 624.424
599	and any rule adopted under this section, except for those lines
600	identified as accident and health insurance and except for
601	policies written under the National Flood Insurance Program. The
602	assessment shall be specified as a percentage of future premium
603	collections and is subject to annual adjustments by the board to
604	reflect changes in premiums subject to assessments collected
605	under this subparagraph in order to meet debt obligations. The
606	same percentage shall apply to all policies in lines of business
607	subject to the assessment issued or renewed during the 12-month
608	period beginning on the effective date of the assessment.
609	2.  A premium is not subject to an annual assessment under
610	this paragraph in excess of 6 percent of premium with respect to
611	obligations arising out of losses attributable to any one
612	contract year, and a premium is not subject to an aggregate
613	annual assessment under this paragraph in excess of 10 percent
614	of premium. An annual assessment under this paragraph shall
615	continue until the revenue bonds issued with respect to which
616	the assessment was imposed are outstanding, including any bonds
617	the proceeds of which were used to refund the revenue bonds,
618	unless adequate provision has been made for the payment of the
619	bonds under the documents authorizing issuance of the bonds.
620	3.  With respect to each insurer collecting premiums that
621	are subject to the assessment, the insurer shall collect the
622	assessment at the same time as it collects the premium payment
623	for each policy and shall remit the assessment collected to the
624	fund or corporation as provided in the order issued by the
625	Office of Insurance Regulation. The office shall verify the
626	accurate and timely collection and remittance of emergency
627	assessments and shall report the information to the board in a
628	form and at a time specified by the board. Each insurer
629	collecting assessments shall provide the information with
630	respect to premiums and collections as may be required by the
631	office to enable the office to monitor and verify compliance
632	with this paragraph.
633	4.  With respect to assessments of surplus lines premiums,
634	each surplus lines agent shall collect the assessment at the
635	same time as the agent collects the surplus lines tax required
636	by s. 626.932, and the surplus lines agent shall remit the
637	assessment to the Florida Surplus Lines Service Office created
638	by s. 626.921 at the same time as the agent remits the surplus
639	lines tax to the Florida Surplus Lines Service Office. The
640	emergency assessment on each insured procuring coverage and
641	filing under s. 626.938 shall be remitted by the insured to the
642	Florida Surplus Lines Service Office at the time the insured
643	pays the surplus lines tax to the Florida Surplus Lines Service
644	Office. The Florida Surplus Lines Service Office shall remit the
645	collected assessments to the fund or corporation as provided in
646	the order levied by the Office of Insurance Regulation. The
647	Florida Surplus Lines Service Office shall verify the proper
648	application of such emergency assessments and shall assist the
649	board in ensuring the accurate and timely collection and
650	remittance of assessments as required by the board. The Florida
651	Surplus Lines Service Office shall annually calculate the
652	aggregate written premium on property and casualty business,
653	other than workers' compensation and medical malpractice,
654	procured through surplus lines agents and insureds procuring
655	coverage and filing under s. 626.938 and shall report the
656	information to the board in a form and at a time specified by
657	the board.
658	5.  Any assessment authority not used for a particular
659	contract year may be used for a subsequent contract year. If,
660	for a subsequent contract year, the board determines that the
661	amount of revenue produced under subsection (5) is insufficient
662	to fund the obligations, costs, and expenses of the fund and the
663	corporation, including repayment of revenue bonds and that
664	portion of the debt service coverage not met by reimbursement
665	premiums, the board shall direct the Office of Insurance
666	Regulation to levy an emergency assessment up to an amount not
667	exceeding the amount of unused assessment authority from a
668	previous contract year or years, plus an additional 4 percent
669	provided that the assessments in the aggregate do not exceed the
670	limits specified in subparagraph 2.
671	6.  The assessments otherwise payable to the corporation
672	under this paragraph shall be paid to the fund unless and until
673	the Office of Insurance Regulation and the Florida Surplus Lines
674	Service Office have received from the corporation and the fund a
675	notice, which shall be conclusive and upon which they may rely
676	without further inquiry, that the corporation has issued bonds
677	and the fund has no agreements in effect with local governments
678	under paragraph (c). On or after the date of the notice and
679	until the date the corporation has no bonds outstanding, the
680	fund shall have no right, title, or interest in or to the
681	assessments, except as provided in the fund's agreement with the
682	corporation.
683	7.  Emergency assessments are not premium and are not
684	subject to the premium tax, to the surplus lines tax, to any
685	fees, or to any commissions. An insurer is liable for all
686	assessments that it collects and must treat the failure of an
687	insured to pay an assessment as a failure to pay the premium. An
688	insurer is not liable for uncollectible assessments.
689	8.  When an insurer is required to return an unearned
690	premium, it shall also return any collected assessment
691	attributable to the unearned premium. A credit adjustment to the
692	collected assessment may be made by the insurer with regard to
693	future remittances that are payable to the fund or corporation,
694	but the insurer is not entitled to a refund.
695	9.  When a surplus lines insured or an insured who has
696	procured coverage and filed under s. 626.938 is entitled to the
697	return of an unearned premium, the Florida Surplus Lines Service
698	Office shall provide a credit or refund to the agent or such
699	insured for the collected assessment attributable to the
700	unearned premium prior to remitting the emergency assessment
701	collected to the fund or corporation.
702	10.  The exemption of medical malpractice insurance
703	premiums from emergency assessments under this paragraph is
704	repealed May 31, 2007, and medical malpractice insurance
705	premiums shall be subject to emergency assessments attributable
706	to loss events occurring in the contract years commencing on
707	June 1, 2007.
708	(c)  Revenue bond issuance through counties or
709	municipalities.--
710	1.  If the board elects to enter into agreements with local
711	governments for the issuance of revenue bonds for the benefit of
712	the fund, the board shall enter into such contracts with one or
713	more local governments, including agreements providing for the
714	pledge of revenues, as are necessary to effect such issuance.
715	The governing body of a county or municipality is authorized to
716	issue bonds as defined in s. 125.013 or s. 166.101 from time to
717	time to fund an assistance program, in conjunction with the
718	Florida Hurricane Insurance Catastrophe Fund, for the purposes
719	set forth in this section or for the purpose of paying the costs
720	of construction, reconstruction, repair, restoration, and other
721	costs associated with damage to properties of policyholders of
722	covered policies due to the occurrence of a hurricane by
723	assuring that policyholders located in this state are able to
724	recover claims under property insurance policies after a covered
725	event.
726	2.  In order to avoid needless and indiscriminate
727	proliferation, duplication, and fragmentation of such assistance
728	programs, any local government may provide for the payment of
729	fund reimbursements, regardless of whether or not the losses for
730	which reimbursement is made occurred within or outside of the
731	territorial jurisdiction of the local government.
732	3.  The state hereby covenants with holders of bonds issued
733	under this paragraph that the state will not repeal or abrogate
734	the power of the board to direct the Office of Insurance
735	Regulation to levy the assessments and to collect the proceeds
736	of the revenues pledged to the payment of such bonds as long as
737	any such bonds remain outstanding unless adequate provision has
738	been made for the payment of such bonds pursuant to the
739	documents authorizing the issuance of such bonds.
740	4.  There shall be no liability on the part of, and no
741	cause of action shall arise against any members or employees of
742	the governing body of a local government for any actions taken
743	by them in the performance of their duties under this paragraph.
744	(d)  Florida Hurricane Insurance Catastrophe Fund Finance
745	Corporation.--
746	1.  In addition to the findings and declarations in
747	subsection (1), the Legislature also finds and declares that:
748	a.  The public benefits corporation created under this
749	paragraph will provide a mechanism necessary for the cost-
750	effective and efficient issuance of bonds. This mechanism will
751	eliminate unnecessary costs in the bond issuance process,
752	thereby increasing the amounts available to pay reimbursement
753	for losses to property sustained as a result of hurricane
754	damage.
755	b.  The purpose of such bonds is to fund reimbursements
756	through the Florida Hurricane Insurance Catastrophe Fund to pay
757	for the costs of construction, reconstruction, repair,
758	restoration, and other costs associated with damage to
759	properties of policyholders of covered policies due to the
760	occurrence of a hurricane.
761	c.  The efficacy of the financing mechanism will be
762	enhanced by the corporation's ownership of the assessments, by
763	the insulation of the assessments from possible bankruptcy
764	proceedings, and by covenants of the state with the
765	corporation's bondholders.
766	2.a.  There is created a public benefits corporation, which
767	is an instrumentality of the state, to be known as the Florida
768	Hurricane Insurance Catastrophe Fund Finance Corporation.
769	b.  The corporation shall operate under a five-member board
770	of directors consisting of the Governor or a designee, the Chief
771	Financial Officer or a designee, the Attorney General or a
772	designee, the director of the Division of Bond Finance of the
773	State Board of Administration, and the senior employee of the
774	State Board of Administration responsible for operations of the
775	Florida Hurricane Insurance Catastrophe Fund.
776	c.  The corporation has all of the powers of corporations
777	under chapter 607 and under chapter 617, subject only to the
778	provisions of this subsection.
779	d.  The corporation may issue bonds and engage in such
780	other financial transactions as are necessary to provide
781	sufficient funds to achieve the purposes of this section.
782	e.  The corporation may invest in any of the investments
783	authorized under s. 215.47.
784	f.  There shall be no liability on the part of, and no
785	cause of action shall arise against, any board members or
786	employees of the corporation for any actions taken by them in
787	the performance of their duties under this paragraph.
788	3.a.  In actions under chapter 75 to validate any bonds
789	issued by the corporation, the notice required by s. 75.06 shall
790	be published only in Leon County and in two newspapers of
791	general circulation in the state, and the complaint and order of
792	the court shall be served only on the State Attorney of the
793	Second Judicial Circuit.
794	b.  The state hereby covenants with holders of bonds of the
795	corporation that the state will not repeal or abrogate the power
796	of the board to direct the Office of Insurance Regulation to
797	levy the assessments and to collect the proceeds of the revenues
798	pledged to the payment of such bonds as long as any such bonds
799	remain outstanding unless adequate provision has been made for
800	the payment of such bonds pursuant to the documents authorizing
801	the issuance of such bonds.
802	4.  The bonds of the corporation are not a debt of the
803	state or of any political subdivision, and neither the state nor
804	any political subdivision is liable on such bonds. The
805	corporation does not have the power to pledge the credit, the
806	revenues, or the taxing power of the state or of any political
807	subdivision. The credit, revenues, or taxing power of the state
808	or of any political subdivision shall not be deemed to be
809	pledged to the payment of any bonds of the corporation.
810	5.a.  The property, revenues, and other assets of the
811	corporation; the transactions and operations of the corporation
812	and the income from such transactions and operations; and all
813	bonds issued under this paragraph and interest on such bonds are
814	exempt from taxation by the state and any political subdivision,
815	including the intangibles tax under chapter 199 and the income
816	tax under chapter 220. This exemption does not apply to any tax
817	imposed by chapter 220 on interest, income, or profits on debt
818	obligations owned by corporations other than the Florida
819	Hurricane Insurance Catastrophe Fund Finance Corporation.
820	b.  All bonds of the corporation shall be and constitute
821	legal investments without limitation for all public bodies of
822	this state; for all banks, trust companies, savings banks,
823	savings associations, savings and loan associations, and
824	investment companies; for all administrators, executors,
825	trustees, and other fiduciaries; for all insurance companies and
826	associations and other persons carrying on an insurance
827	business; and for all other persons who are now or may hereafter
828	be authorized to invest in bonds or other obligations of the
829	state and shall be and constitute eligible securities to be
830	deposited as collateral for the security of any state, county,
831	municipal, or other public funds. This sub-subparagraph shall be
832	considered as additional and supplemental authority and shall
833	not be limited without specific reference to this sub-
834	subparagraph.
835	6.  The corporation and its corporate existence shall
836	continue until terminated by law; however, no such law shall
837	take effect as long as the corporation has bonds outstanding
838	unless adequate provision has been made for the payment of such
839	bonds pursuant to the documents authorizing the issuance of such
840	bonds. Upon termination of the existence of the corporation, all
841	of its rights and properties in excess of its obligations shall
842	pass to and be vested in the state.
843	(e)  Protection of bondholders.--
844	1.  As long as the corporation has any bonds outstanding,
845	neither the fund nor the corporation shall have the authority to
846	file a voluntary petition under chapter 9 of the federal
847	Bankruptcy Code or such corresponding chapter or sections as may
848	be in effect, from time to time, and neither any public officer
849	nor any organization, entity, or other person shall authorize
850	the fund or the corporation to be or become a debtor under
851	chapter 9 of the federal Bankruptcy Code or such corresponding
852	chapter or sections as may be in effect, from time to time,
853	during any such period.
854	2.  The state hereby covenants with holders of bonds of the
855	corporation that the state will not limit or alter the denial of
856	authority under this paragraph or the rights under this section
857	vested in the fund or the corporation to fulfill the terms of
858	any agreements made with such bondholders or in any way impair
859	the rights and remedies of such bondholders as long as any such
860	bonds remain outstanding unless adequate provision has been made
861	for the payment of such bonds pursuant to the documents
862	authorizing the issuance of such bonds.
863	3.  Notwithstanding any other provision of law, any pledge
864	of or other security interest in revenue, money, accounts,
865	contract rights, general intangibles, or other personal property
866	made or created by the fund or the corporation shall be valid,
867	binding, and perfected from the time such pledge is made or
868	other security interest attaches without any physical delivery
869	of the collateral or further act and the lien of any such pledge
870	or other security interest shall be valid, binding, and
871	perfected against all parties having claims of any kind in tort,
872	contract, or otherwise against the fund or the corporation
873	irrespective of whether or not such parties have notice of such
874	claims. No instrument by which such a pledge or security
875	interest is created nor any financing statement need be recorded
876	or filed.
877	(7)  ADDITIONAL POWERS AND DUTIES.--
878	(a)  The board may procure reinsurance from reinsurers
879	acceptable to the Office of Insurance Regulation for the purpose
880	of maximizing the capacity of the fund.
881	(b)  In addition to borrowing under subsection (6), the
882	board may also borrow from, or enter into other financing
883	arrangements with, any market sources at prevailing interest
884	rates.
885	(c)  Each fiscal year, the Legislature shall appropriate
886	from the investment income of the Florida Hurricane Catastrophe
887	Fund an amount no less than $10 million and no more than 35
888	percent of the investment income based upon the most recent
889	fiscal year-end audited financial statements for the purpose of
890	providing funding for local governments, state agencies, public
891	and private educational institutions, and nonprofit
892	organizations to support programs intended to improve hurricane
893	preparedness, reduce potential losses in the event of a
894	hurricane, provide research into means to reduce such losses,
895	educate or inform the public as to means to reduce hurricane
896	losses, assist the public in determining the appropriateness of
897	particular upgrades to structures or in the financing of such
898	upgrades, or protect local infrastructure from potential damage
899	from a hurricane. Moneys shall first be available for
900	appropriation under this paragraph in fiscal year 1997-1998.
901	Moneys in excess of the $10 million specified in this paragraph
902	shall not be available for appropriation under this paragraph if
903	the State Board of Administration finds that an appropriation of
904	investment income from the fund would jeopardize the actuarial
905	soundness of the fund.
906	(c)(d)  The board may allow insurers to comply with
907	reporting requirements and reporting format requirements by
908	using alternative methods of reporting if the proper
909	administration of the fund is not thereby impaired and if the
910	alternative methods produce data which is consistent with the
911	purposes of this section.
912	(d)(e)  In order to assure the equitable operation of the
913	fund, the board may impose a reasonable fee on an insurer to
914	recover costs involved in reprocessing inaccurate, incomplete,
915	or untimely exposure data submitted by the insurer.
916	(8)  ADVISORY COUNCIL.--The State Board of Administration
917	shall appoint a nine-member Florida Hurricane Insurance Fund
918	Advisory Council that consists of an actuary, a meteorologist,
919	an engineer, a representative of insurers, a representative of
920	insurance agents, a representative of reinsurers, and three
921	consumers who shall also be representatives of other affected
922	professions and industries, to provide the board with
923	information and advice in connection with its duties under this
924	section. Members of the advisory council shall serve at the
925	pleasure of the board and are eligible for per diem and travel
926	expenses under s. 112.061.
927	(9)  APPLICABILITY OF S. 19, ART. III OF THE STATE
928	CONSTITUTION.--The Legislature finds that the Florida Hurricane
929	Insurance Catastrophe Fund created by this section is a trust
930	fund established for bond covenants, indentures, or resolutions
931	within the meaning of s. 19(f)(3), Art. III of the State
932	Constitution.
933	(10)  VIOLATIONS.--Any violation of this section or of
934	rules adopted under this section constitutes a violation of the
935	insurance code.
936	(11)  LEGAL PROCEEDINGS.--The board is authorized to take
937	any action necessary to enforce the rules, and the provisions
938	and requirements of the reimbursement contract, required by and
939	adopted pursuant to this section.
940	(12)  FEDERAL OR MULTISTATE CATASTROPHIC FUNDS.--Upon the
941	creation of a federal or multistate catastrophic insurance or
942	reinsurance program intended to serve purposes similar to the
943	purposes of the fund created by this section, the State Board of
944	Administration shall promptly make recommendations to the
945	Legislature for coordination with the federal or multistate
946	program, for termination of the fund, or for such other actions
947	as the board finds appropriate in the circumstances.
948	(13)  REVERSION OF FUND ASSETS UPON TERMINATION.--The fund
949	and the duties of the board under this section may be terminated
950	only by law. Upon termination of the fund, all assets of the
951	fund shall revert to the General Revenue Fund.
952	(14)  SEVERABILITY.--If any provision of this section or
953	its application to any person or circumstance is held invalid,
954	the invalidity does not affect other provisions or applications
955	of the section which can be given effect without the invalid
956	provision or application, and to this end the provisions of this
957	section are declared severable.
958	(15)  COLLATERAL PROTECTION INSURANCE.--As used in this
959	section and ss. 627.311 and 627.351, the term "collateral
960	protection insurance" means commercial property insurance of
961	which a creditor is the primary beneficiary and policyholder and
962	which protects or covers an interest of the creditor arising out
963	of a credit transaction secured by real or personal property.
964	Initiation of such coverage is triggered by the mortgagor's
965	failure to maintain insurance coverage as required by the
966	mortgage or other lending document. Collateral protection
967	insurance is not residential coverage.
968	Section 2.  Section 215.556, Florida Statutes, is amended
969	to read:
970	215.556  Exemption.--The Florida Hurricane Insurance
971	Catastrophe Fund created by s. 215.555 is exempt from the
972	deduction required by s. 215.20(1).
973	Section 3.  Section 215.558, Florida Statutes, is created
974	to read:
975	215.558  Florida Hurricane Damage Prevention Endowment.--
976	(1)  PURPOSE AND INTENT.--The purpose of this section is to
977	provide a continuing source of funding for financial incentives
978	to encourage residential property owners of this state to
979	retrofit their properties to make them less vulnerable to
980	hurricane damage, to help decrease the cost of residential
981	property and casualty insurance, and to provide matching funds
982	to local governments and nonprofit entities for projects that
983	will reduce hurricane damage to residential properties. It is
984	the intent of the Legislature that this section be construed
985	liberally 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
989	the endowment by the 2006 Legislature, together with any amounts
990	subsequently appropriated to the endowment that are specifically
991	designated as contributions to the corpus and any grants, gifts,
992	or donations to the endowment that are specifically designated
993	as contributions to the corpus.
994	(c)  "Earnings" means any money in the endowment in excess
995	of the corpus, including any income generated by investments,
996	any increase in the market value of investments net of decreases
997	in market value, and any appropriations, grants, gifts, or
998	donations to the endowment not specifically designated as
999	contributions to the corpus.
1000	(d)  "Endowment" means the Florida Hurricane Damage
1001	Prevention Endowment created by this section.
1002	(e)  "Program administrator" means the Department of
1003	Financial Services.
1004	(3)  ADMINISTRATION.--
1005	(a)  The board shall invest endowment assets as provided in
1006	this section.
1007	(b)  The board may invest and reinvest funds of the
1008	endowment in accordance with s. 215.47 and consistent with board
1009	policy.
1010	(c)  The investment objective shall be long-term
1011	preservation of the value of the corpus and a specified regular
1012	annual cash outflow for appropriation, as nonrecurring revenue,
1013	for the purposes specified in subsection (4).
1014	(d)  In accordance with s. 215.44, the board shall report
1015	on the financial status of the endowment in its annual
1016	investment report to the Legislature.
1017	(e)  Costs and fees of the board for investment services
1018	shall be deducted from the assets of the endowment.
1019	(4)  FINANCIAL INCENTIVES FOR RESIDENTIAL HURRICANE DAMAGE
1020	PREVENTION ACTIVITIES.--
1021	(a)  Not less than 80 percent of the net earnings of the
1022	endowment shall be expended for financial incentives to
1023	residential property owners as described in paragraph (b), and
1024	no more than the remainder of the net earnings of the endowment
1025	shall be expended for matching fund grants to local governments
1026	and nonprofit entities for projects that will reduce hurricane
1027	damage to residential properties as described in paragraph (c).
1028	Any funds authorized for expenditure but not expended for these
1029	purposes shall be returned to the endowment.
1030	(b)1.  The program administrator, by rule, shall establish
1031	a request for a proposal process to annually solicit proposals
1032	from lending institutions under which the lending institution
1033	will provide interest-free loans to homestead property owners to
1034	pay for inspections of homestead property to determine what
1035	mitigation measures are needed and for improvements to existing
1036	residential properties intended to reduce the homestead
1037	property's vulnerability to hurricane damage, in exchange for
1038	funding from the endowment.
1039	2.  In order to qualify for funding under this paragraph,
1040	an interest-free loan program must include an inspection of
1041	homestead property to determine what mitigation measures are
1042	needed, a means for verifying that the improvements to be paid
1043	for from loan proceeds have been demonstrated to reduce a
1044	homestead property's vulnerability to hurricane damage, and a
1045	means for verifying that the proceeds were actually spent on
1046	such improvements. The program must include a method for
1047	awarding loans according to the following priorities:
1048	a.  The highest priority must be given to single-family
1049	owner-occupied homestead dwellings, insured at $500,000 or less,
1050	located in the areas designated as high-risk areas for purposes
1051	of coverage by the Citizens Property Insurance Corporation.
1052	b.  The next highest priority must be given to single-
1053	family owner-occupied homestead dwellings, insured at $500,000
1054	or less, covered by the Citizens Property Insurance Corporation,
1055	wherever located.
1056	c.  The next highest priority must be given to single-
1057	family owner-occupied homestead dwellings, insured at $500,000
1058	or less, that are more than 40 years old.
1059	d.  The next highest priority must be given to all other
1060	single-family owner-occupied homestead dwellings insured at
1061	$500,000 or less.
1062	3.  The program administrator shall evaluate proposals
1063	based on the following factors:
1064	a.  The degree to which the proposal meets the requirements
1065	of subparagraph 2.
1066	b.  The lending institution's plan for marketing the loans.
1067	c.  The anticipated number of loans to be granted relative
1068	to the total amount of funding sought.
1069	4.  The program administrator shall annually solicit
1070	proposals from local governments and nonprofit entities for
1071	projects that will reduce hurricane damage to homestead
1072	properties. The program administrator may provide up to 50
1073	percent of the funding for such projects. The projects may
1074	include educational programs, repair services, property
1075	inspections, and hurricane vulnerability analyses and such other
1076	projects as the program administrator determines to be
1077	consistent with the purposes of this section.
1078	(5)  ADVISORY COUNCIL.--There is created an advisory
1079	council to provide advice and assistance to the program
1080	administrator with regard to its administration of the
1081	endowment. The advisory council shall consist of:
1082	(a)  A representative of lending institutions, selected by
1083	the Financial Services Commission from a list of at least three
1084	persons recommended by the Florida Bankers Association.
1085	(b)  A representative of residential property insurers,
1086	selected by the Financial Services Commission from a list of at
1087	least three persons recommended by the Florida Insurance
1088	Council.
1089	(c)  A representative of home builders, selected by the
1090	Financial Services Commission from a list of at least three
1091	persons recommended by the Florida Home Builders Association.
1092	(d)  A faculty member of a state university selected by the
1093	Financial Services Commission who is an expert in hurricane-
1094	resistant construction methodologies and materials.
1095	(e)  Two members of the House of Representatives selected
1096	by the Speaker of the House of Representatives.
1097	(f)  Two members of the Senate selected by the President of
1098	the Senate.
1099	(g)  The senior officer of the Florida Hurricane
1100	Catastrophe Fund.
1101	(h)  The executive director of Citizens Property Insurance
1102	Corporation.
1103	(i)  The director of the Division of Emergency Management
1104	of the Department of Community Affairs.
1105
1106	Members appointed under paragraphs (a)-(d) shall serve at the
1107	pleasure of the Financial Services Commission. Members appointed
1108	under paragraphs (e) and (f) shall serve at the pleasure of the
1109	appointing officer. All other members shall serve ex officio.
1110	Members of the advisory council shall serve without compensation
1111	but may receive reimbursement as provided in s. 112.061 for per
1112	diem and travel expenses incurred in the performance of their
1113	official duties.
1114	Section 4.  Section 215.5586, Florida Statutes, is created
1115	to read:
1116	215.5586  Florida Comprehensive Hurricane Damage Mitigation
1117	Program.--There is established within the Department of
1118	Financial Services the Florida Comprehensive Hurricane Damage
1119	Mitigation Program. The program shall be administered by an
1120	individual with prior executive experience in the private sector
1121	in the areas of insurance, business, or construction. The
1122	program shall develop and implement a comprehensive and
1123	coordinated approach for hurricane damage mitigation that shall
1124	include the following:
1125	(1)  WIND CERTIFICATION AND HURRICANE MITIGATION
1126	INSPECTIONS.--
1127	(a)  Free home-retrofit inspections of site-built,
1128	residential property, including single-family, two-family,
1129	three-family, or four-family residential units, shall be offered
1130	to determine what mitigation measures are needed and what
1131	improvements to existing residential properties are needed to
1132	reduce the property's vulnerability to hurricane damage. The
1133	Department of Financial Services shall establish a request for
1134	proposals to solicit proposals from wind certification entities
1135	to provide at no cost to homeowners wind certification and
1136	hurricane mitigation inspections. The inspections provided to
1137	homeowners, at a minimum, must include:
1138	1.  A home inspection and report that summarizes the
1139	results and identifies corrective actions a homeowner may take
1140	to mitigate hurricane damage.
1141	2.  A range of cost estimates regarding the mitigation
1142	features.
1143	3.  Insurer-specific information regarding premium
1144	discounts correlated to recommended mitigation features
1145	identified by the inspection.
1146	4.  A hurricane resistance rating scale specifying the
1147	home's current as well as projected wind resistance
1148	capabilities.
1149	(b)  To qualify for selection by the department as a
1150	provider of wind certification and hurricane mitigation
1151	inspections, the entity shall, at a minimum:
1152	1.  Use wind certification and hurricane mitigation
1153	inspectors who:
1154	a.  Have prior experience in residential construction or
1155	inspection and have received specialized training in hurricane
1156	mitigation procedures.
1157	b.  Have undergone drug testing and background checks.
1158	c.  Have been certified, in a manner satisfactory to the
1159	department, to conduct the inspections.
1160	2.  Provide a quality assurance program including a
1161	reinspection component.
1162	(2)  GRANTS.--Financial grants shall be used to encourage
1163	single-family, site-built, owner-occupied, residential property
1164	owners to retrofit their properties to make them less vulnerable
1165	to hurricane damage.
1166	(a)  To be eligible for a grant, a residential property
1167	must:
1168	1.  Have been granted a homestead exemption under chapter
1169	196.
1170	2.  Be a dwelling with an insured value of $500,000 or
1171	less.
1172	3.  Have undergone an acceptable wind certification and
1173	hurricane mitigation inspection.
1174
1175	A residential property which is part of a multi-family
1176	residential unit may receive a grant only if all homeowners
1177	participate and the total number of units does not exceed four.
1178	(b)  All grants must be matched on a dollar-for-dollar
1179	basis for a total of $10,000 for the mitigation project with the
1180	state's contribution not to exceed $5,000.
1181	(c)  The program shall create a process in which mitigation
1182	contractors agree to participate and seek reimbursement from the
1183	state and homeowners select from a list of participating
1184	contractors. All mitigation must be based upon the securing of
1185	all required local permits and inspections. Mitigation projects
1186	are subject to random reinspection of up to at least 10 percent
1187	of all projects.
1188	(d)  Matching fund grants shall also be made available to
1189	local governments and nonprofit entities for projects that will
1190	reduce hurricane damage to single-family, site-built, owner-
1191	occupied, residential property.
1192	(3)  LOANS.--Financial incentives shall be provided as
1193	authorized by s. 215.558.
1194	(4)  EDUCATION AND CONSUMER AWARENESS.--Multimedia public
1195	education, awareness, and advertising efforts designed to
1196	specifically address mitigation techniques shall be employed, as
1197	well as a component to support ongoing consumer resources and
1198	referral services.
1199	(5)  ADVISORY COUNCIL.--There is created an advisory
1200	council to provide advice and assistance to the program
1201	administrator with regard to his or her administration of the
1202	program. The advisory council shall consist of:
1203	(a)  A representative of lending institutions, selected by
1204	the Financial Services Commission from a list of at least three
1205	persons recommended by the Florida Bankers Association.
1206	(b)  A representative of residential property insurers,
1207	selected by the Financial Services Commission from a list of at
1208	least three persons recommended by the Florida Insurance
1209	Council.
1210	(c)  A representative of home builders, selected by the
1211	Financial Services Commission from a list of at least three
1212	persons recommended by the Florida Home Builders Association.
1213	(d)  A faculty member of a state university, selected by
1214	the Financial Services Commission, who is an expert in
1215	hurricane-resistant construction methodologies and materials.
1216	(e)  Two members of the House of Representatives, selected
1217	by the Speaker of the House of Representatives.
1218	(f)  Two members of the Senate, selected by the President
1219	of the Senate.
1220	(g)  The Chief Executive Officer of the Federal Alliance
1221	for Safe Homes, Inc., or his or her designee.
1222	(h)  The senior officer of the Florida Hurricane
1223	Catastrophe Fund.
1224	(i)  The executive director of Citizens Property Insurance
1225	Corporation.
1226	(j)  The director of the Division of Emergency Management
1227	of the Department of Community Affairs.
1228
1229	Members appointed under paragraphs (a)-(d) shall serve at the
1230	pleasure of the Financial Services Commission. Members appointed
1231	under paragraphs (e) and (f) shall serve at the pleasure of the
1232	appointing officer. All other members shall serve voting ex
1233	officio. Members of the advisory council shall serve without
1234	compensation but may receive reimbursement as provided in s.
1235	112.061 for per diem and travel expenses incurred in the
1236	performance of their official duties.
1237	(6)  RULES.--The Department of Financial Services shall
1238	adopt rules pursuant to ss. 120.536(1) and 120.54 governing the
1239	Florida Comprehensive Hurricane Damage Mitigation Program.
1240	Section 5.  Section 215.559, Florida Statutes, is amended
1241	to read:
1242	215.559  Hurricane Loss Mitigation Program.--
1243	(1)  There is created a Hurricane Loss Mitigation Program.
1244	The Legislature shall annually appropriate $10 million of the
1245	moneys authorized for appropriation under s. 215.555(7)(c) from
1246	the Florida Hurricane Catastrophe Fund to the Department of
1247	Community Affairs for the purposes set forth in this section.
1248	(2)(a)  Seven million dollars in funds provided in
1249	subsection (1) shall be used for programs to improve the wind
1250	resistance of residences and mobile homes, including loans,
1251	subsidies, grants, demonstration projects, and direct
1252	assistance; cooperative programs with local governments and the
1253	Federal Government; and other efforts to prevent or reduce
1254	losses 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
1257	hurricane shelters. The department must prioritize the use of
1258	these funds for projects included in the September 1, 2000,
1259	version of the Shelter Retrofit Report prepared in accordance
1260	with s. 252.385(3), and each annual report thereafter. The
1261	department must give funding priority to projects in regional
1262	planning council regions that have shelter deficits and to
1263	projects that maximize use of state funds.
1264	(3)  By the 2006-2007 fiscal year, the Department of
1265	Community Affairs shall develop a low-interest loan program for
1266	homeowners and mobile home owners to retrofit their homes with
1267	fixtures or apply construction techniques that have been
1268	demonstrated to reduce the amount of damage or loss due to a
1269	hurricane. Funding for the program shall be used to subsidize or
1270	guaranty private-sector loans for this purpose to qualified
1271	homeowners by financial institutions chartered by the state or
1272	Federal Government. The department may enter into contracts with
1273	financial institutions for this purpose. The department shall
1274	establish criteria for determining eligibility for the loans and
1275	selecting recipients, standards for retrofitting homes or mobile
1276	homes, limitations on loan subsidies and loan guaranties, and
1277	other terms and conditions of the program, which must be
1278	specified in the department's report to the Legislature on
1279	January 1, 2006, required by subsection (8). For the 2005-2006
1280	fiscal 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
1283	in one or more counties. The Department of Financial Services,
1284	the Office of Financial Regulation, the Florida Housing Finance
1285	Corporation, and the Office of Tourism, Trade, and Economic
1286	Development shall assist the Department of Community Affairs in
1287	establishing the program and pilot project. The department may
1288	use up to 2.5 percent of the funds appropriated in any given
1289	fiscal year for administering the loan program. The department
1290	may adopt rules to implement the program.
1291	(3)(a)(4)  Forty percent of the total appropriation in
1292	paragraph (2)(a) shall be used to inspect and improve tie-downs
1293	for mobile homes. Within 30 days after the effective date of
1294	that appropriation, the department shall contract with a public
1295	higher educational institution in this state which has previous
1296	experience in administering the programs set forth in this
1297	subsection to serve as the administrative entity and fiscal
1298	agent pursuant to s. 216.346 for the purpose of administering
1299	the programs set forth in this subsection in accordance with
1300	established policy and procedures. The administrative entity
1301	working with the advisory council set up under subsection (6)
1302	shall develop a list of mobile home parks and counties that may
1303	be eligible to participate in the tie-down program.
1304	(b)1.  There is created the Manufactured Housing and Mobile
1305	Home Hurricane Mitigation Program. The program shall require the
1306	mitigation of damage to homes for the areas of concern raised by
1307	the Department of Highway Safety and Motor Vehicles in the 2004-
1308	2005 Hurricane Reports on the effects of the 2004 and 2005
1309	hurricanes on manufactured and mobile homes in this state. The
1310	mitigation shall include, but not be limited to, problems
1311	associated with weakened trusses, studs, and other structural
1312	components, site-built additions, or tie-down systems and may
1313	also address any other issues deemed appropriate by the
1314	Department of Community Affairs upon consultation with the
1315	Tallahassee Community College, the Federation of Manufactured
1316	Home Owners of Florida, Inc., the Florida Manufactured Housing
1317	Association, and the Department of Highway Safety and Motor
1318	Vehicles. The program may include an education and outreach
1319	component to ensure that owners of manufactured and mobile homes
1320	are aware of the benefits of participation.
1321	2.  The program shall include the offering of a matching
1322	grant to owners of manufactured and mobile homes manufactured
1323	after 1993 only. Homeowners accepted for the program shall be
1324	eligible to qualify for a $5,000 dollar-for-dollar matching
1325	grant in which the homeowner may receive up to $2,500 in state
1326	moneys. The moneys appropriated for this program shall be
1327	distributed directly to the Department of Community Affairs for
1328	the uses set forth under this paragraph.
1329	3.  Upon evidence of completion of the program, the
1330	Citizens Property Insurance Corporation shall grant, on a pro
1331	rata basis, actuarially reasonable discounts, credits, or other
1332	rate differentials or appropriate reductions in deductibles for
1333	the properties of owners of manufactured homes or mobile homes
1334	on which fixtures or construction techniques that have been
1335	demonstrated to reduce the amount of loss in a windstorm have
1336	been installed or implemented. The discount on the premium shall
1337	be applied to subsequent renewal premium amounts. Premiums of
1338	the Citizens Property Insurance Corporation shall reflect the
1339	location of the home and the fact that the home has been
1340	installed in compliance with building codes adopted after
1341	Hurricane Andrew.
1342	4.  On or before January 1 of each year, the Department of
1343	Community Affairs shall provide a report of activities under
1344	this subsection to the Governor, the President of the Senate,
1345	and the Speaker of the House of Representatives. The report
1346	shall set forth the number of manufactured homes and mobile
1347	homes that have taken advantage of the program, the types of
1348	enhancements and improvements made to the manufactured homes or
1349	mobile homes and attachments to such homes, and whether there
1350	has been an increase of availability of insurance products to
1351	owners of manufactured homes or mobile homes.
1352	(4)(5)  Of moneys provided to the Department of Community
1353	Affairs in paragraph (2)(a), 10 percent shall be allocated to a
1354	Type I Center within the State University System dedicated to
1355	hurricane research. The Type I Center shall develop a
1356	preliminary work plan approved by the advisory council set forth
1357	in subsection (6) to eliminate the state and local barriers to
1358	upgrading existing mobile homes and communities, research and
1359	develop a program for the recycling of existing older mobile
1360	homes, and support programs of research and development relating
1361	to hurricane loss reduction devices and techniques for site-
1362	built residences. The State University System also shall consult
1363	with the Department of Community Affairs and assist the
1364	department with the report required under subsection (8).
1365	(5)(6)  The Department of Community Affairs shall develop
1366	the programs set forth in this section in consultation with an
1367	advisory council consisting of a representative designated by
1368	the Chief Financial Officer, a representative designated by the
1369	Florida Home Builders Association, a representative designated
1370	by the Florida Insurance Council, a representative designated by
1371	the Federation of Manufactured Home Owners, a representative
1372	designated by the Florida Association of Counties, and a
1373	representative designated by the Florida Manufactured Housing
1374	Association.
1375	(6)(7)  Moneys provided to the Department of Community
1376	Affairs under this section are intended to supplement other
1377	funding sources of the Department of Community Affairs and may
1378	not supplant other funding sources of the Department of
1379	Community Affairs.
1380	(7)(8)  On January 1st of each year, the Department of
1381	Community Affairs shall provide a full report and accounting of
1382	activities under this section and an evaluation of such
1383	activities to the Speaker of the House of Representatives, the
1384	President of the Senate, and the Majority and Minority Leaders
1385	of 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
1388	Statutes, is amended to read:
1389	624.424  Annual statement and other information.--
1390	(10)  Each insurer or insurer group doing business in this
1391	state shall file on a quarterly basis in conjunction with
1392	financial reports required by paragraph (1)(a) a supplemental
1393	report on an individual and group basis on a form prescribed by
1394	the commission with information on personal lines and commercial
1395	lines residential property insurance policies in this state. The
1396	supplemental report shall include separate information for
1397	personal lines property policies and for commercial lines
1398	property policies and totals for each item specified, including
1399	premiums written for each of the property lines of business as
1400	described in ss. 215.555(2)(f)(c) and 627.351(6)(a). The report
1401	shall include the following information for each county on a
1402	monthly basis:
1403	(a)  Total number of policies in force at the end of each
1404	month.
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
1411	policies that include wind coverage.
1412	(h)  Number of policies that exclude wind coverage.
1413	Section 7.  Subsection (3) of section 624.5091, Florida
1414	Statutes, is amended to read:
1415	624.5091  Retaliatory provision, insurers.--
1416	(3)  This section does not apply as to personal income
1417	taxes, nor as to sales or use taxes, nor as to ad valorem taxes
1418	on real or personal property, nor as to reimbursement premiums
1419	paid to the Florida Hurricane Insurance Catastrophe Fund, nor as
1420	to emergency assessments paid to the Florida Hurricane Insurance
1421	Catastrophe Fund, nor as to special purpose obligations or
1422	assessments imposed in connection with particular kinds of
1423	insurance other than property insurance, except that deductions,
1424	from premium taxes or other taxes otherwise payable, allowed on
1425	account of real estate or personal property taxes paid shall be
1426	taken into consideration by the department in determining the
1427	propriety and extent of retaliatory action under this section.
1428	Section 8.  Subsection (5) of section 627.062, Florida
1429	Statutes, is amended to read:
1430	627.062  Rate standards.--
1431	(5)  With respect to a rate filing involving coverage of
1432	the type for which the insurer is required to pay a
1433	reimbursement premium to the Florida Hurricane Insurance
1434	Catastrophe Fund, the insurer may fully recoup in its property
1435	insurance premiums any reimbursement premiums paid to the
1436	Florida Hurricane Insurance Catastrophe Fund, together with
1437	reasonable costs of other reinsurance, but may not recoup
1438	reinsurance costs that duplicate coverage provided by the
1439	Florida Hurricane Insurance Catastrophe Fund. An insurer may not
1440	recoup more than 1 year of reimbursement premium at a time. Any
1441	under-recoupment from the prior year may be added to the
1442	following year's reimbursement premium and any over-recoupment
1443	shall be subtracted from the following year's reimbursement
1444	premium.
1445	Section 9.  Paragraph (c) of subsection (1), paragraphs (b)
1446	and (f) of subsection (2), and paragraph (b) of subsection (3)
1447	of section 627.0628, Florida Statutes, are amended to read:
1448	627.0628  Florida Commission on Hurricane Loss Projection
1449	Methodology; public records exemption; public meetings
1450	exemption.--
1451	(1)  LEGISLATIVE FINDINGS AND INTENT.--
1452	(c)  It is the intent of the Legislature to create the
1453	Florida Commission on Hurricane Loss Projection Methodology as a
1454	panel of experts to provide the most actuarially sophisticated
1455	guidelines and standards for projection of hurricane losses
1456	possible, given the current state of actuarial science. It is
1457	the further intent of the Legislature that such standards and
1458	guidelines must be used by the State Board of Administration in
1459	developing reimbursement premium rates for the Florida Hurricane
1460	Insurance Catastrophe Fund, and, subject to paragraph (3)(c),
1461	may be used by insurers in rate filings under s. 627.062 unless
1462	the way in which such standards and guidelines were applied by
1463	the insurer was erroneous, as shown by a preponderance of the
1464	evidence.
1465	(2)  COMMISSION CREATED.--
1466	(b)  The commission shall consist of the following 11
1467	members:
1468	1.  The insurance consumer advocate.
1469	2.  The senior employee of the State Board of
1470	Administration responsible for operations of the Florida
1471	Hurricane Insurance Catastrophe Fund.
1472	3.  The Executive Director of the Citizens Property
1473	Insurance Corporation.
1474	4.  The Director of the Division of Emergency Management of
1475	the Department of Community Affairs.
1476	5.  The actuary member of the Florida Hurricane Insurance
1477	Catastrophe Fund Advisory Council.
1478	6.  An employee of the office who is an actuary responsible
1479	for property insurance rate filings and who is appointed by the
1480	director of the office.
1481	7.  Five members appointed by the Chief Financial Officer,
1482	as follows:
1483	a.  An actuary who is employed full time by a property and
1484	casualty insurer which was responsible for at least 1 percent of
1485	the aggregate statewide direct written premium for homeowner's
1486	insurance in the calendar year preceding the member's
1487	appointment to the commission.
1488	b.  An expert in insurance finance who is a full-time
1489	member of the faculty of the State University System and who has
1490	a background in actuarial science.
1491	c.  An expert in statistics who is a full-time member of
1492	the faculty of the State University System and who has a
1493	background in insurance.
1494	d.  An expert in computer system design who is a full-time
1495	member of the faculty of the State University System.
1496	e.  An expert in meteorology who is a full-time member of
1497	the faculty of the State University System and who specializes
1498	in hurricanes.
1499	(f)  The State Board of Administration shall, as a cost of
1500	administration of the Florida Hurricane Insurance Catastrophe
1501	Fund, provide for travel, expenses, and staff support for the
1502	commission.
1503	(3)  ADOPTION AND EFFECT OF STANDARDS AND GUIDELINES.--
1504	(b)  In establishing reimbursement premiums for the Florida
1505	Hurricane Insurance Catastrophe Fund, the State Board of
1506	Administration must, to the extent feasible, employ actuarial
1507	methods, principles, standards, models, or output ranges found
1508	by the commission to be accurate or reliable.
1509	Section 10.  Subsection (10) of section 627.0629, Florida
1510	Statutes, is amended to read:
1511	627.0629  Residential property insurance; rate filings.--
1512	(10)  A property insurance rate filing that includes any
1513	adjustments related to premiums paid to the Florida Hurricane
1514	Insurance Catastrophe Fund must include a complete calculation
1515	of the insurer's catastrophe load, and the information in the
1516	filing may not be limited solely to recovery of moneys paid to
1517	the fund.
1518	Section 11.  Paragraph (b) of subsection (2) and paragraphs
1519	(b), (c), (k), and (l) of subsection (6) of section 627.351,
1520	Florida 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
1524	certificate of authority to transact property insurance on a
1525	direct basis in this state, other than joint underwriting
1526	associations and other entities formed pursuant to this section,
1527	to provide windstorm coverage to applicants from areas
1528	determined to be eligible pursuant to paragraph (c) who in good
1529	faith are entitled to, but are unable to procure, such coverage
1530	through ordinary means; or it shall adopt a reasonable plan or
1531	plans for the equitable apportionment or sharing among such
1532	insurers of windstorm coverage, which may include formation of
1533	an association for this purpose. As used in this subsection, the
1534	term "property insurance" means insurance on real or personal
1535	property, as defined in s. 624.604, including insurance for
1536	fire, industrial fire, allied lines, farmowners multiperil,
1537	homeowners' multiperil, commercial multiperil, and mobile homes,
1538	and including liability coverages on all such insurance, but
1539	excluding inland marine as defined in s. 624.607(3) and
1540	excluding vehicle insurance as defined in s. 624.605(1)(a) other
1541	than insurance on mobile homes used as permanent dwellings. The
1542	department shall adopt rules that provide a formula for the
1543	recovery and repayment of any deferred assessments.
1544	1.  For the purpose of this section, properties eligible
1545	for such windstorm coverage are defined as dwellings, buildings,
1546	and other structures, including mobile homes which are used as
1547	dwellings and which are tied down in compliance with mobile home
1548	tie-down requirements prescribed by the Department of Highway
1549	Safety and Motor Vehicles pursuant to s. 320.8325, and the
1550	contents of all such properties. An applicant or policyholder is
1551	eligible for coverage only if an offer of coverage cannot be
1552	obtained by or for the applicant or policyholder from an
1553	admitted insurer at approved rates.
1554	2.a.(I)  All insurers required to be members of such
1555	association shall participate in its writings, expenses, and
1556	losses. Surplus of the association shall be retained for the
1557	payment of claims and shall not be distributed to the member
1558	insurers. Such participation by member insurers shall be in the
1559	proportion that the net direct premiums of each member insurer
1560	written for property insurance in this state during the
1561	preceding calendar year bear to the aggregate net direct
1562	premiums for property insurance of all member insurers, as
1563	reduced by any credits for voluntary writings, in this state
1564	during the preceding calendar year. For the purposes of this
1565	subsection, the term "net direct premiums" means direct written
1566	premiums for property insurance, reduced by premium for
1567	liability coverage and for the following if included in allied
1568	lines: rain and hail on growing crops; livestock; association
1569	direct premiums booked; National Flood Insurance Program direct
1570	premiums; and similar deductions specifically authorized by the
1571	plan of operation and approved by the department. A member's
1572	participation shall begin on the first day of the calendar year
1573	following the year in which it is issued a certificate of
1574	authority to transact property insurance in the state and shall
1575	terminate 1 year after the end of the calendar year during which
1576	it no longer holds a certificate of authority to transact
1577	property insurance in the state. The commissioner, after review
1578	of annual statements, other reports, and any other statistics
1579	that the commissioner deems necessary, shall certify to the
1580	association the aggregate direct premiums written for property
1581	insurance in this state by all member insurers.
1582	(II)  Effective July 1, 2002, the association shall operate
1583	subject to the supervision and approval of a board of governors
1584	who are the same individuals that have been appointed by the
1585	Treasurer to serve on the board of governors of the Citizens
1586	Property Insurance Corporation.
1587	(III)  The plan of operation shall provide a formula
1588	whereby a company voluntarily providing windstorm coverage in
1589	affected areas will be relieved wholly or partially from
1590	apportionment of a regular assessment pursuant to sub-sub-
1591	subparagraph d.(I) or sub-sub-subparagraph d.(II).
1592	(IV)  A company which is a member of a group of companies
1593	under common management may elect to have its credits applied on
1594	a group basis, and any company or group may elect to have its
1595	credits applied to any other company or group.
1596	(V)  There shall be no credits or relief from apportionment
1597	to a company for emergency assessments collected from its
1598	policyholders under sub-sub-subparagraph d.(III).
1599	(VI)  The plan of operation may also provide for the award
1600	of credits, for a period not to exceed 3 years, from a regular
1601	assessment pursuant to sub-sub-subparagraph d.(I) or sub-sub-
1602	subparagraph d.(II) as an incentive for taking policies out of
1603	the Residential Property and Casualty Joint Underwriting
1604	Association. In order to qualify for the exemption under this
1605	sub-sub-subparagraph, the take-out plan must provide that at
1606	least 40 percent of the policies removed from the Residential
1607	Property and Casualty Joint Underwriting Association cover risks
1608	located in Dade, Broward, and Palm Beach Counties or at least 30
1609	percent of the policies so removed cover risks located in Dade,
1610	Broward, and Palm Beach Counties and an additional 50 percent of
1611	the policies so removed cover risks located in other coastal
1612	counties, and must also provide that no more than 15 percent of
1613	the policies so removed may exclude windstorm coverage. With the
1614	approval of the department, the association may waive these
1615	geographic criteria for a take-out plan that removes at least
1616	the lesser of 100,000 Residential Property and Casualty Joint
1617	Underwriting Association policies or 15 percent of the total
1618	number of Residential Property and Casualty Joint Underwriting
1619	Association policies, provided the governing board of the
1620	Residential Property and Casualty Joint Underwriting Association
1621	certifies that the take-out plan will materially reduce the
1622	Residential Property and Casualty Joint Underwriting
1623	Association's 100-year probable maximum loss from hurricanes.
1624	With the approval of the department, the board may extend such
1625	credits for an additional year if the insurer guarantees an
1626	additional year of renewability for all policies removed from
1627	the Residential Property and Casualty Joint Underwriting
1628	Association, or for 2 additional years if the insurer guarantees
1629	2 additional years of renewability for all policies removed from
1630	the Residential Property and Casualty Joint Underwriting
1631	Association.
1632	b.  Assessments to pay deficits in the association under
1633	this subparagraph shall be included as an appropriate factor in
1634	the making of rates as provided in s. 627.3512.
1635	c.  The Legislature finds that the potential for unlimited
1636	deficit assessments under this subparagraph may induce insurers
1637	to attempt to reduce their writings in the voluntary market, and
1638	that such actions would worsen the availability problems that
1639	the association was created to remedy. It is the intent of the
1640	Legislature that insurers remain fully responsible for paying
1641	regular assessments and collecting emergency assessments for any
1642	deficits of the association; however, it is also the intent of
1643	the Legislature to provide a means by which assessment
1644	liabilities may be amortized over a period of years.
1645	d.(I)  When the deficit incurred in a particular calendar
1646	year is 10 percent or less of the aggregate statewide direct
1647	written premium for property insurance for the prior calendar
1648	year for all member insurers, the association shall levy an
1649	assessment on member insurers in an amount equal to the deficit.
1650	(II)  When the deficit incurred in a particular calendar
1651	year exceeds 10 percent of the aggregate statewide direct
1652	written premium for property insurance for the prior calendar
1653	year for all member insurers, the association shall levy an
1654	assessment on member insurers in an amount equal to the greater
1655	of 10 percent of the deficit or 10 percent of the aggregate
1656	statewide direct written premium for property insurance for the
1657	prior calendar year for member insurers. Any remaining deficit
1658	shall be recovered through emergency assessments under sub-sub-
1659	subparagraph (III).
1660	(III)  Upon a determination by the board of directors that
1661	a deficit exceeds the amount that will be recovered through
1662	regular assessments on member insurers, pursuant to sub-sub-
1663	subparagraph (I) or sub-sub-subparagraph (II), the board shall
1664	levy, after verification by the department, emergency
1665	assessments to be collected by member insurers and by
1666	underwriting associations created pursuant to this section which
1667	write property insurance, upon issuance or renewal of property
1668	insurance policies other than National Flood Insurance policies
1669	in the year or years following levy of the regular assessments.
1670	The amount of the emergency assessment collected in a particular
1671	year shall be a uniform percentage of that year's direct written
1672	premium for property insurance for all member insurers and
1673	underwriting associations, excluding National Flood Insurance
1674	policy premiums, as annually determined by the board and
1675	verified by the department. The department shall verify the
1676	arithmetic calculations involved in the board's determination
1677	within 30 days after receipt of the information on which the
1678	determination was based. Notwithstanding any other provision of
1679	law, each member insurer and each underwriting association
1680	created pursuant to this section shall collect emergency
1681	assessments from its policyholders without such obligation being
1682	affected by any credit, limitation, exemption, or deferment. The
1683	emergency assessments so collected shall be transferred directly
1684	to the association on a periodic basis as determined by the
1685	association. The aggregate amount of emergency assessments
1686	levied under this sub-sub-subparagraph in any calendar year may
1687	not exceed the greater of 10 percent of the amount needed to
1688	cover the original deficit, plus interest, fees, commissions,
1689	required reserves, and other costs associated with financing of
1690	the original deficit, or 10 percent of the aggregate statewide
1691	direct written premium for property insurance written by member
1692	insurers and underwriting associations for the prior year, plus
1693	interest, fees, commissions, required reserves, and other costs
1694	associated with financing the original deficit. The board may
1695	pledge the proceeds of the emergency assessments under this sub-
1696	sub-subparagraph as the source of revenue for bonds, to retire
1697	any other debt incurred as a result of the deficit or events
1698	giving rise to the deficit, or in any other way that the board
1699	determines will efficiently recover the deficit. The emergency
1700	assessments under this sub-sub-subparagraph shall continue as
1701	long as any bonds issued or other indebtedness incurred with
1702	respect to a deficit for which the assessment was imposed remain
1703	outstanding, unless adequate provision has been made for the
1704	payment of such bonds or other indebtedness pursuant to the
1705	document governing such bonds or other indebtedness. Emergency
1706	assessments collected under this sub-sub-subparagraph are not
1707	part of an insurer's rates, are not premium, and are not subject
1708	to premium tax, fees, or commissions; however, failure to pay
1709	the emergency assessment shall be treated as failure to pay
1710	premium.
1711	(IV)  Each member insurer's share of the total regular
1712	assessments under sub-sub-subparagraph (I) or sub-sub-
1713	subparagraph (II) shall be in the proportion that the insurer's
1714	net direct premium for property insurance in this state, for the
1715	year preceding the assessment bears to the aggregate statewide
1716	net direct premium for property insurance of all member
1717	insurers, as reduced by any credits for voluntary writings for
1718	that year.
1719	(V)  If regular deficit assessments are made under sub-sub-
1720	subparagraph (I) or sub-sub-subparagraph (II), or by the
1721	Residential Property and Casualty Joint Underwriting Association
1722	under sub-subparagraph (6)(b)3.a. or sub-subparagraph
1723	(6)(b)3.b., the association shall levy upon the association's
1724	policyholders, as part of its next rate filing, or by a separate
1725	rate filing solely for this purpose, a market equalization
1726	surcharge in a percentage equal to the total amount of such
1727	regular assessments divided by the aggregate statewide direct
1728	written premium for property insurance for member insurers for
1729	the prior calendar year. Market equalization surcharges under
1730	this sub-sub-subparagraph are not considered premium and are not
1731	subject to commissions, fees, or premium taxes; however, failure
1732	to pay a market equalization surcharge shall be treated as
1733	failure to pay premium.
1734	e.  The governing body of any unit of local government, any
1735	residents of which are insured under the plan, may issue bonds
1736	as defined in s. 125.013 or s. 166.101 to fund an assistance
1737	program, in conjunction with the association, for the purpose of
1738	defraying deficits of the association. In order to avoid
1739	needless and indiscriminate proliferation, duplication, and
1740	fragmentation of such assistance programs, any unit of local
1741	government, any residents of which are insured by the
1742	association, may provide for the payment of losses, regardless
1743	of whether or not the losses occurred within or outside of the
1744	territorial jurisdiction of the local government. Revenue bonds
1745	may not be issued until validated pursuant to chapter 75, unless
1746	a state of emergency is declared by executive order or
1747	proclamation of the Governor pursuant to s. 252.36 making such
1748	findings as are necessary to determine that it is in the best
1749	interests of, and necessary for, the protection of the public
1750	health, safety, and general welfare of residents of this state
1751	and the protection and preservation of the economic stability of
1752	insurers operating in this state, and declaring it an essential
1753	public purpose to permit certain municipalities or counties to
1754	issue bonds as will provide relief to claimants and
1755	policyholders of the association and insurers responsible for
1756	apportionment of plan losses. Any such unit of local government
1757	may enter into such contracts with the association and with any
1758	other entity created pursuant to this subsection as are
1759	necessary to carry out this paragraph. Any bonds issued under
1760	this sub-subparagraph shall be payable from and secured by
1761	moneys received by the association from assessments under this
1762	subparagraph, and assigned and pledged to or on behalf of the
1763	unit of local government for the benefit of the holders of such
1764	bonds. The funds, credit, property, and taxing power of the
1765	state or of the unit of local government shall not be pledged
1766	for the payment of such bonds. If any of the bonds remain unsold
1767	60 days after issuance, the department shall require all
1768	insurers subject to assessment to purchase the bonds, which
1769	shall be treated as admitted assets; each insurer shall be
1770	required to purchase that percentage of the unsold portion of
1771	the bond issue that equals the insurer's relative share of
1772	assessment liability under this subsection. An insurer shall not
1773	be required to purchase the bonds to the extent that the
1774	department determines that the purchase would endanger or impair
1775	the solvency of the insurer. The authority granted by this sub-
1776	subparagraph is additional to any bonding authority granted by
1777	subparagraph 6.
1778	3.  The plan shall also provide that any member with a
1779	surplus as to policyholders of $20 million or less writing 25
1780	percent or more of its total countrywide property insurance
1781	premiums in this state may petition the department, within the
1782	first 90 days of each calendar year, to qualify as a limited
1783	apportionment company. The apportionment of such a member
1784	company in any calendar year for which it is qualified shall not
1785	exceed its gross participation, which shall not be affected by
1786	the formula for voluntary writings. In no event shall a limited
1787	apportionment company be required to participate in any
1788	apportionment of losses pursuant to sub-sub-subparagraph 2.d.(I)
1789	or sub-sub-subparagraph 2.d.(II) in the aggregate which exceeds
1790	$50 million after payment of available plan funds in any
1791	calendar year. However, a limited apportionment company shall
1792	collect from its policyholders any emergency assessment imposed
1793	under sub-sub-subparagraph 2.d.(III). The plan shall provide
1794	that, if the department determines that any regular assessment
1795	will result in an impairment of the surplus of a limited
1796	apportionment company, the department may direct that all or
1797	part of such assessment be deferred. However, there shall be no
1798	limitation or deferment of an emergency assessment to be
1799	collected from policyholders under sub-sub-subparagraph
1800	2.d.(III).
1801	4.  The plan shall provide for the deferment, in whole or
1802	in part, of a regular assessment of a member insurer under sub-
1803	sub-subparagraph 2.d.(I) or sub-sub-subparagraph 2.d.(II), but
1804	not for an emergency assessment collected from policyholders
1805	under sub-sub-subparagraph 2.d.(III), if, in the opinion of the
1806	commissioner, payment of such regular assessment would endanger
1807	or impair the solvency of the member insurer. In the event a
1808	regular assessment against a member insurer is deferred in whole
1809	or in part, the amount by which such assessment is deferred may
1810	be assessed against the other member insurers in a manner
1811	consistent with the basis for assessments set forth in sub-sub-
1812	subparagraph 2.d.(I) or sub-sub-subparagraph 2.d.(II).
1813	5.a.  The plan of operation may include deductibles and
1814	rules for classification of risks and rate modifications
1815	consistent with the objective of providing and maintaining funds
1816	sufficient to pay catastrophe losses.
1817	b.  The association may require arbitration of a rate
1818	filing under s. 627.062(6). It is the intent of the Legislature
1819	that the rates for coverage provided by the association be
1820	actuarially sound and not competitive with approved rates
1821	charged in the admitted voluntary market such that the
1822	association functions as a residual market mechanism to provide
1823	insurance only when the insurance cannot be procured in the
1824	voluntary market. The plan of operation shall provide a
1825	mechanism to assure that, beginning no later than January 1,
1826	1999, the rates charged by the association for each line of
1827	business are reflective of approved rates in the voluntary
1828	market for hurricane coverage for each line of business in the
1829	various areas eligible for association coverage.
1830	c.  The association shall provide for windstorm coverage on
1831	residential properties in limits up to $10 million for
1832	commercial lines residential risks and up to $1 million for
1833	personal lines residential risks. If coverage with the
1834	association is sought for a residential risk valued in excess of
1835	these limits, coverage shall be available to the risk up to the
1836	replacement cost or actual cash value of the property, at the
1837	option of the insured, if coverage for the risk cannot be
1838	located in the authorized market. The association must accept a
1839	commercial lines residential risk with limits above $10 million
1840	or a personal lines residential risk with limits above $1
1841	million if coverage is not available in the authorized market.
1842	The association may write coverage above the limits specified in
1843	this subparagraph with or without facultative or other
1844	reinsurance coverage, as the association determines appropriate.
1845	d.  The plan of operation must provide objective criteria
1846	and procedures, approved by the department, to be uniformly
1847	applied for all applicants in determining whether an individual
1848	risk is so hazardous as to be uninsurable. In making this
1849	determination and in establishing the criteria and procedures,
1850	the following shall be considered:
1851	(I)  Whether the likelihood of a loss for the individual
1852	risk is substantially higher than for other risks of the same
1853	class; and
1854	(II)  Whether the uncertainty associated with the
1855	individual risk is such that an appropriate premium cannot be
1856	determined.
1857
1858	The acceptance or rejection of a risk by the association
1859	pursuant to such criteria and procedures must be construed as
1860	the private placement of insurance, and the provisions of
1861	chapter 120 do not apply.
1862	e.  If the risk accepts an offer of coverage through the
1863	market assistance program or through a mechanism established by
1864	the association, either before the policy is issued by the
1865	association or during the first 30 days of coverage by the
1866	association, and the producing agent who submitted the
1867	application to the association is not currently appointed by the
1868	insurer, the insurer shall:
1869	(I)  Pay to the producing agent of record of the policy,
1870	for the first year, an amount that is the greater of the
1871	insurer's usual and customary commission for the type of policy
1872	written or a fee equal to the usual and customary commission of
1873	the association; or
1874	(II)  Offer to allow the producing agent of record of the
1875	policy to continue servicing the policy for a period of not less
1876	than 1 year and offer to pay the agent the greater of the
1877	insurer's or the association's usual and customary commission
1878	for the type of policy written.
1879
1880	If the producing agent is unwilling or unable to accept
1881	appointment, the new insurer shall pay the agent in accordance
1882	with sub-sub-subparagraph (I). Subject to the provisions of s.
1883	627.3517, the policies issued by the association must provide
1884	that if the association obtains an offer from an authorized
1885	insurer to cover the risk at its approved rates under either a
1886	standard policy including wind coverage or, if consistent with
1887	the insurer's underwriting rules as filed with the department, a
1888	basic policy including wind coverage, the risk is no longer
1889	eligible for coverage through the association. Upon termination
1890	of eligibility, the association shall provide written notice to
1891	the policyholder and agent of record stating that the
1892	association policy must be canceled as of 60 days after the date
1893	of the notice because of the offer of coverage from an
1894	authorized insurer. Other provisions of the insurance code
1895	relating to cancellation and notice of cancellation do not apply
1896	to actions under this sub-subparagraph.
1897	f.  When the association enters into a contractual
1898	agreement for a take-out plan, the producing agent of record of
1899	the association policy is entitled to retain any unearned
1900	commission on the policy, and the insurer shall:
1901	(I)  Pay to the producing agent of record of the
1902	association policy, for the first year, an amount that is the
1903	greater of the insurer's usual and customary commission for the
1904	type of policy written or a fee equal to the usual and customary
1905	commission of the association; or
1906	(II)  Offer to allow the producing agent of record of the
1907	association policy to continue servicing the policy for a period
1908	of not less than 1 year and offer to pay the agent the greater
1909	of the insurer's or the association's usual and customary
1910	commission for the type of policy written.
1911
1912	If the producing agent is unwilling or unable to accept
1913	appointment, the new insurer shall pay the agent in accordance
1914	with sub-sub-subparagraph (I).
1915	6.a.  The plan of operation may authorize the formation of
1916	a private nonprofit corporation, a private nonprofit
1917	unincorporated association, a partnership, a trust, a limited
1918	liability company, or a nonprofit mutual company which may be
1919	empowered, among other things, to borrow money by issuing bonds
1920	or by incurring other indebtedness and to accumulate reserves or
1921	funds to be used for the payment of insured catastrophe losses.
1922	The plan may authorize all actions necessary to facilitate the
1923	issuance of bonds, including the pledging of assessments or
1924	other revenues.
1925	b.  Any entity created under this subsection, or any entity
1926	formed for the purposes of this subsection, may sue and be sued,
1927	may borrow money; issue bonds, notes, or debt instruments;
1928	pledge or sell assessments, market equalization surcharges and
1929	other surcharges, rights, premiums, contractual rights,
1930	projected recoveries from the Florida Hurricane Insurance
1931	Catastrophe Fund, other reinsurance recoverables, and other
1932	assets as security for such bonds, notes, or debt instruments;
1933	enter into any contracts or agreements necessary or proper to
1934	accomplish such borrowings; and take other actions necessary to
1935	carry out the purposes of this subsection. The association may
1936	issue bonds or incur other indebtedness, or have bonds issued on
1937	its behalf by a unit of local government pursuant to
1938	subparagraph (6)(g)2., in the absence of a hurricane or other
1939	weather-related event, upon a determination by the association
1940	subject to approval by the department that such action would
1941	enable it to efficiently meet the financial obligations of the
1942	association and that such financings are reasonably necessary to
1943	effectuate the requirements of this subsection. Any such entity
1944	may accumulate reserves and retain surpluses as of the end of
1945	any association year to provide for the payment of losses
1946	incurred by the association during that year or any future year.
1947	The association shall incorporate and continue the plan of
1948	operation and articles of agreement in effect on the effective
1949	date of chapter 76-96, Laws of Florida, to the extent that it is
1950	not inconsistent with chapter 76-96, and as subsequently
1951	modified consistent with chapter 76-96. The board of directors
1952	and officers currently serving shall continue to serve until
1953	their successors are duly qualified as provided under the plan.
1954	The assets and obligations of the plan in effect immediately
1955	prior to the effective date of chapter 76-96 shall be construed
1956	to be the assets and obligations of the successor plan created
1957	herein.
1958	c.  In recognition of s. 10, Art. I of the State
1959	Constitution, prohibiting the impairment of obligations of
1960	contracts, it is the intent of the Legislature that no action be
1961	taken whose purpose is to impair any bond indenture or financing
1962	agreement or any revenue source committed by contract to such
1963	bond or other indebtedness issued or incurred by the association
1964	or any other entity created under this subsection.
1965	7.  On such coverage, an agent's remuneration shall be that
1966	amount of money payable to the agent by the terms of his or her
1967	contract with the company with which the business is placed.
1968	However, no commission will be paid on that portion of the
1969	premium which is in excess of the standard premium of that
1970	company.
1971	8.  Subject to approval by the department, the association
1972	may establish different eligibility requirements and operational
1973	procedures for any line or type of coverage for any specified
1974	eligible area or portion of an eligible area if the board
1975	determines that such changes to the eligibility requirements and
1976	operational procedures are justified due to the voluntary market
1977	being sufficiently stable and competitive in such area or for
1978	such line or type of coverage and that consumers who, in good
1979	faith, are unable to obtain insurance through the voluntary
1980	market through ordinary methods would continue to have access to
1981	coverage from the association. When coverage is sought in
1982	connection with a real property transfer, such requirements and
1983	procedures shall not provide for an effective date of coverage
1984	later than the date of the closing of the transfer as
1985	established by the transferor, the transferee, and, if
1986	applicable, the lender.
1987	9.  Notwithstanding any other provision of law:
1988	a.  The pledge or sale of, the lien upon, and the security
1989	interest in any rights, revenues, or other assets of the
1990	association created or purported to be created pursuant to any
1991	financing documents to secure any bonds or other indebtedness of
1992	the association shall be and remain valid and enforceable,
1993	notwithstanding the commencement of and during the continuation
1994	of, and after, any rehabilitation, insolvency, liquidation,
1995	bankruptcy, receivership, conservatorship, reorganization, or
1996	similar proceeding against the association under the laws of
1997	this state or any other applicable laws.
1998	b.  No such proceeding shall relieve the association of its
1999	obligation, or otherwise affect its ability to perform its
2000	obligation, to continue to collect, or levy and collect,
2001	assessments, market equalization or other surcharges, projected
2002	recoveries from the Florida Hurricane Insurance Catastrophe
2003	Fund, reinsurance recoverables, or any other rights, revenues,
2004	or other assets of the association pledged.
2005	c.  Each such pledge or sale of, lien upon, and security
2006	interest in, including the priority of such pledge, lien, or
2007	security interest, any such assessments, emergency assessments,
2008	market equalization or renewal surcharges, projected recoveries
2009	from the Florida Hurricane Insurance Catastrophe Fund,
2010	reinsurance recoverables, or other rights, revenues, or other
2011	assets which are collected, or levied and collected, after the
2012	commencement of and during the pendency of or after any such
2013	proceeding shall continue unaffected by such proceeding.
2014	d.  As used in this subsection, the term "financing
2015	documents" means any agreement, instrument, or other document
2016	now existing or hereafter created evidencing any bonds or other
2017	indebtedness of the association or pursuant to which any such
2018	bonds or other indebtedness has been or may be issued and
2019	pursuant to which any rights, revenues, or other assets of the
2020	association are pledged or sold to secure the repayment of such
2021	bonds or indebtedness, together with the payment of interest on
2022	such bonds or such indebtedness, or the payment of any other
2023	obligation of the association related to such bonds or
2024	indebtedness.
2025	e.  Any such pledge or sale of assessments, revenues,
2026	contract rights or other rights or assets of the association
2027	shall constitute a lien and security interest, or sale, as the
2028	case may be, that is immediately effective and attaches to such
2029	assessments, revenues, contract, or other rights or assets,
2030	whether or not imposed or collected at the time the pledge or
2031	sale is made. Any such pledge or sale is effective, valid,
2032	binding, and enforceable against the association or other entity
2033	making such pledge or sale, and valid and binding against and
2034	superior to any competing claims or obligations owed to any
2035	other person or entity, including policyholders in this state,
2036	asserting rights in any such assessments, revenues, contract, or
2037	other rights or assets to the extent set forth in and in
2038	accordance with the terms of the pledge or sale contained in the
2039	applicable financing documents, whether or not any such person
2040	or entity has notice of such pledge or sale and without the need
2041	for any physical delivery, recordation, filing, or other action.
2042	f.  There shall be no liability on the part of, and no
2043	cause of action of any nature shall arise against, any member
2044	insurer or its agents or employees, agents or employees of the
2045	association, members of the board of directors of the
2046	association, or the department or its representatives, for any
2047	action taken by them in the performance of their duties or
2048	responsibilities under this subsection. Such immunity does not
2049	apply to actions for breach of any contract or agreement
2050	pertaining to insurance, or any willful tort.
2051	(6)  CITIZENS PROPERTY INSURANCE CORPORATION.--
2052	(b)1.  All insurers authorized to write one or more subject
2053	lines of business in this state are subject to assessment by the
2054	corporation and, for the purposes of this subsection, are
2055	referred to collectively as "assessable insurers." Insurers
2056	writing one or more subject lines of business in this state
2057	pursuant to part VIII of chapter 626 are not assessable
2058	insurers, but insureds who procure one or more subject lines of
2059	business in this state pursuant to part VIII of chapter 626 are
2060	subject to assessment by the corporation and are referred to
2061	collectively as "assessable insureds." An authorized insurer's
2062	assessment liability shall begin on the first day of the
2063	calendar year following the year in which the insurer was issued
2064	a certificate of authority to transact insurance for subject
2065	lines of business in this state and shall terminate 1 year after
2066	the end of the first calendar year during which the insurer no
2067	longer holds a certificate of authority to transact insurance
2068	for subject lines of business in this state.
2069	2.a.  All revenues, assets, liabilities, losses, and
2070	expenses of the corporation shall be divided into three separate
2071	accounts as follows:
2072	(I)  A personal lines account for personal residential
2073	policies issued by the corporation or issued by the Residential
2074	Property and Casualty Joint Underwriting Association and renewed
2075	by the corporation that provide comprehensive, multiperil
2076	coverage on risks that are not located in areas eligible for
2077	coverage in the Florida Windstorm Underwriting Association as
2078	those areas were defined on January 1, 2002, and for such
2079	policies that do not provide coverage for the peril of wind on
2080	risks that are located in such areas;
2081	(II)  A commercial lines account for commercial residential
2082	policies issued by the corporation or issued by the Residential
2083	Property and Casualty Joint Underwriting Association and renewed
2084	by the corporation that provide coverage for basic property
2085	perils on risks that are not located in areas eligible for
2086	coverage in the Florida Windstorm Underwriting Association as
2087	those areas were defined on January 1, 2002, and for such
2088	policies that do not provide coverage for the peril of wind on
2089	risks that are located in such areas; and
2090	(III)  A high-risk account for personal residential
2091	policies and commercial residential and commercial
2092	nonresidential property policies issued by the corporation or
2093	transferred to the corporation that provide coverage for the
2094	peril of wind on risks that are located in areas eligible for
2095	coverage in the Florida Windstorm Underwriting Association as
2096	those areas were defined on January 1, 2002. The high-risk
2097	account must also include quota share primary insurance under
2098	subparagraph (c)2. The area eligible for coverage under the
2099	high-risk account also includes the area within Port Canaveral,
2100	which is bordered on the south by the City of Cape Canaveral,
2101	bordered on the west by the Banana River, and bordered on the
2102	north by Federal Government property. The office may remove
2103	territory from the area eligible for wind-only and quota share
2104	coverage if, after a public hearing, the office finds that
2105	authorized insurers in the voluntary market are willing and able
2106	to write sufficient amounts of personal and commercial
2107	residential coverage for all perils in the territory, including
2108	coverage for the peril of wind, such that risks covered by wind-
2109	only policies in the removed territory could be issued a policy
2110	by the corporation in either the personal lines or commercial
2111	lines account without a significant increase in the
2112	corporation's probable maximum loss in such account. Removal of
2113	territory from the area eligible for wind-only or quota share
2114	coverage does not alter the assignment of wind coverage written
2115	in such areas to the high-risk account.
2116	b.  The three separate accounts must be maintained as long
2117	as financing obligations entered into by the Florida Windstorm
2118	Underwriting Association or Residential Property and Casualty
2119	Joint Underwriting Association are outstanding, in accordance
2120	with the terms of the corresponding financing documents. When
2121	the financing obligations are no longer outstanding, in
2122	accordance with the terms of the corresponding financing
2123	documents, the corporation may use a single account for all
2124	revenues, assets, liabilities, losses, and expenses of the
2125	corporation.
2126	c.  Creditors of the Residential Property and Casualty
2127	Joint Underwriting Association shall have a claim against, and
2128	recourse to, the accounts referred to in sub-sub-subparagraphs
2129	a.(I) and (II) and shall have no claim against, or recourse to,
2130	the account referred to in sub-sub-subparagraph a.(III).
2131	Creditors of the Florida Windstorm Underwriting Association
2132	shall have a claim against, and recourse to, the account
2133	referred to in sub-sub-subparagraph a.(III) and shall have no
2134	claim against, or recourse to, the accounts referred to in sub-
2135	sub-subparagraphs a.(I) and (II).
2136	d.  Revenues, assets, liabilities, losses, and expenses not
2137	attributable to particular accounts shall be prorated among the
2138	accounts.
2139	e.  The Legislature finds that the revenues of the
2140	corporation are revenues that are necessary to meet the
2141	requirements set forth in documents authorizing the issuance of
2142	bonds under this subsection.
2143	f.  No part of the income of the corporation may inure to
2144	the 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
2147	is not greater than 10 percent of the aggregate statewide direct
2148	written premium for the subject lines of business for the prior
2149	calendar year, the entire deficit shall be recovered through
2150	regular assessments of assessable insurers under paragraph (g)
2151	and assessable insureds.
2152	b.  When the deficit incurred in a particular calendar year
2153	exceeds 10 percent of the aggregate statewide direct written
2154	premium for the subject lines of business for the prior calendar
2155	year, the corporation shall levy regular assessments on
2156	assessable insurers under paragraph (g) and on assessable
2157	insureds in an amount equal to the greater of 10 percent of the
2158	deficit or 10 percent of the aggregate statewide direct written
2159	premium for the subject lines of business for the prior calendar
2160	year. Any remaining deficit shall be recovered through emergency
2161	assessments under sub-subparagraph d.
2162	c.  Each assessable insurer's share of the amount being
2163	assessed under sub-subparagraph a. or sub-subparagraph b. shall
2164	be in the proportion that the assessable insurer's direct
2165	written premium for the subject lines of business for the year
2166	preceding the assessment bears to the aggregate statewide direct
2167	written premium for the subject lines of business for that year.
2168	The assessment percentage applicable to each assessable insured
2169	is the ratio of the amount being assessed under sub-subparagraph
2170	a. or sub-subparagraph b. to the aggregate statewide direct
2171	written premium for the subject lines of business for the prior
2172	year. Assessments levied by the corporation on assessable
2173	insurers under sub-subparagraphs a. and b. shall be paid as
2174	required by the corporation's plan of operation and paragraph
2175	(g). Assessments levied by the corporation on assessable
2176	insureds under sub-subparagraphs a. and b. shall be collected by
2177	the surplus lines agent at the time the surplus lines agent
2178	collects the surplus lines tax required by s. 626.932 and shall
2179	be paid to the Florida Surplus Lines Service Office at the time
2180	the surplus lines agent pays the surplus lines tax to the
2181	Florida Surplus Lines Service Office. Upon receipt of regular
2182	assessments from surplus lines agents, the Florida Surplus Lines
2183	Service Office shall transfer the assessments directly to the
2184	corporation as determined by the corporation.
2185	d.  Upon a determination by the board of governors that a
2186	deficit in an account exceeds the amount that will be recovered
2187	through regular assessments under sub-subparagraph a. or sub-
2188	subparagraph b., the board shall levy, after verification by the
2189	office, emergency assessments, for as many years as necessary to
2190	cover the deficits, to be collected by assessable insurers and
2191	the corporation and collected from assessable insureds upon
2192	issuance or renewal of policies for subject lines of business,
2193	excluding National Flood Insurance policies. The amount of the
2194	emergency assessment collected in a particular year shall be a
2195	uniform percentage of that year's direct written premium for
2196	subject lines of business and all accounts of the corporation,
2197	excluding National Flood Insurance Program policy premiums, as
2198	annually determined by the board and verified by the office. The
2199	office shall verify the arithmetic calculations involved in the
2200	board's determination within 30 days after receipt of the
2201	information on which the determination was based.
2202	Notwithstanding any other provision of law, the corporation and
2203	each assessable insurer that writes subject lines of business
2204	shall collect emergency assessments from its policyholders
2205	without such obligation being affected by any credit,
2206	limitation, exemption, or deferment. Emergency assessments
2207	levied by the corporation on assessable insureds shall be
2208	collected by the surplus lines agent at the time the surplus
2209	lines agent collects the surplus lines tax required by s.
2210	626.932 and shall be paid to the Florida Surplus Lines Service
2211	Office at the time the surplus lines agent pays the surplus
2212	lines tax to the Florida Surplus Lines Service Office. The
2213	emergency assessments so collected shall be transferred directly
2214	to the corporation on a periodic basis as determined by the
2215	corporation and shall be held by the corporation solely in the
2216	applicable account. The aggregate amount of emergency
2217	assessments levied for an account under this sub-subparagraph in
2218	any calendar year may not exceed the greater of 10 percent of
2219	the amount needed to cover the original deficit, plus interest,
2220	fees, commissions, required reserves, and other costs associated
2221	with financing of the original deficit, or 10 percent of the
2222	aggregate statewide direct written premium for subject lines of
2223	business and for all accounts of the corporation for the prior
2224	year, plus interest, fees, commissions, required reserves, and
2225	other costs associated with financing the original deficit.
2226	e.  The corporation may pledge the proceeds of assessments,
2227	projected recoveries from the Florida Hurricane Insurance
2228	Catastrophe Fund, other insurance and reinsurance recoverables,
2229	market equalization surcharges and other surcharges, and other
2230	funds available to the corporation as the source of revenue for
2231	and to secure bonds issued under paragraph (g), bonds or other
2232	indebtedness issued under subparagraph (c)3., or lines of credit
2233	or other financing mechanisms issued or created under this
2234	subsection, or to retire any other debt incurred as a result of
2235	deficits or events giving rise to deficits, or in any other way
2236	that the board determines will efficiently recover such
2237	deficits. The purpose of the lines of credit or other financing
2238	mechanisms is to provide additional resources to assist the
2239	corporation in covering claims and expenses attributable to a
2240	catastrophe. As used in this subsection, the term "assessments"
2241	includes regular assessments under sub-subparagraph a., sub-
2242	subparagraph b., or subparagraph (g)1. and emergency assessments
2243	under sub-subparagraph d. Emergency assessments collected under
2244	sub-subparagraph d. are not part of an insurer's rates, are not
2245	premium, and are not subject to premium tax, fees, or
2246	commissions; however, failure to pay the emergency assessment
2247	shall be treated as failure to pay premium. The emergency
2248	assessments under sub-subparagraph d. shall continue as long as
2249	any bonds issued or other indebtedness incurred with respect to
2250	a deficit for which the assessment was imposed remain
2251	outstanding, unless adequate provision has been made for the
2252	payment of such bonds or other indebtedness pursuant to the
2253	documents governing such bonds or other indebtedness.
2254	f.  As used in this subsection, the term "subject lines of
2255	business" means insurance written by assessable insurers or
2256	procured by assessable insureds on real or personal property, as
2257	defined in s. 624.604, including insurance for fire, industrial
2258	fire, allied lines, farmowners multiperil, homeowners
2259	multiperil, commercial multiperil, and mobile homes, and
2260	including liability coverage on all such insurance, but
2261	excluding inland marine as defined in s. 624.607(3) and
2262	excluding vehicle insurance as defined in s. 624.605(1) other
2263	than insurance on mobile homes used as permanent dwellings.
2264	g.  The Florida Surplus Lines Service Office shall
2265	determine annually the aggregate statewide written premium in
2266	subject lines of business procured by assessable insureds and
2267	shall report that information to the corporation in a form and
2268	at a time the corporation specifies to ensure that the
2269	corporation can meet the requirements of this subsection and the
2270	corporation's financing obligations.
2271	h.  The Florida Surplus Lines Service Office shall verify
2272	the proper application by surplus lines agents of assessment
2273	percentages for regular assessments and emergency assessments
2274	levied under this subparagraph on assessable insureds and shall
2275	assist the corporation in ensuring the accurate, timely
2276	collection and payment of assessments by surplus lines agents as
2277	required by the corporation.
2278	(c)  The plan of operation of the corporation:
2279	1.  Must provide for adoption of residential property and
2280	casualty insurance policy forms and commercial residential and
2281	nonresidential property insurance forms, which forms must be
2282	approved by the office prior to use. The corporation shall adopt
2283	the following policy forms:
2284	a.  Standard personal lines policy forms that are
2285	comprehensive multiperil policies providing full coverage of a
2286	residential property equivalent to the coverage provided in the
2287	private insurance market under an HO-3, HO-4, or HO-6 policy.
2288	b.  Basic personal lines policy forms that are policies
2289	similar to an HO-8 policy or a dwelling fire policy that provide
2290	coverage meeting the requirements of the secondary mortgage
2291	market, but which coverage is more limited than the coverage
2292	under a standard policy.
2293	c.  Commercial lines residential policy forms that are
2294	generally similar to the basic perils of full coverage
2295	obtainable for commercial residential structures in the admitted
2296	voluntary market.
2297	d.  Personal lines and commercial lines residential
2298	property insurance forms that cover the peril of wind only. The
2299	forms are applicable only to residential properties located in
2300	areas eligible for coverage under the high-risk account referred
2301	to in sub-subparagraph (b)2.a.
2302	e.  Commercial lines nonresidential property insurance
2303	forms that cover the peril of wind only. The forms are
2304	applicable only to nonresidential properties located in areas
2305	eligible for coverage under the high-risk account referred to in
2306	sub-subparagraph (b)2.a.
2307	2.a.  Must provide that the corporation adopt a program in
2308	which the corporation and authorized insurers enter into quota
2309	share primary insurance agreements for hurricane coverage, as
2310	defined in s. 627.4025(2)(a), for eligible risks, and adopt
2311	property insurance forms for eligible risks which cover the
2312	peril of wind only. As used in this subsection, the term:
2313	(I)  "Quota share primary insurance" means an arrangement
2314	in which the primary hurricane coverage of an eligible risk is
2315	provided in specified percentages by the corporation and an
2316	authorized insurer. The corporation and authorized insurer are
2317	each solely responsible for a specified percentage of hurricane
2318	coverage of an eligible risk as set forth in a quota share
2319	primary insurance agreement between the corporation and an
2320	authorized insurer and the insurance contract. The
2321	responsibility of the corporation or authorized insurer to pay
2322	its specified percentage of hurricane losses of an eligible
2323	risk, as set forth in the quota share primary insurance
2324	agreement, may not be altered by the inability of the other
2325	party to the agreement to pay its specified percentage of
2326	hurricane losses. Eligible risks that are provided hurricane
2327	coverage through a quota share primary insurance arrangement
2328	must be provided policy forms that set forth the obligations of
2329	the corporation and authorized insurer under the arrangement,
2330	clearly specify the percentages of quota share primary insurance
2331	provided by the corporation and authorized insurer, and
2332	conspicuously and clearly state that neither the authorized
2333	insurer nor the corporation may be held responsible beyond its
2334	specified percentage of coverage of hurricane losses.
2335	(II)  "Eligible risks" means personal lines residential and
2336	commercial lines residential risks that meet the underwriting
2337	criteria of the corporation and are located in areas that were
2338	eligible for coverage by the Florida Windstorm Underwriting
2339	Association on January 1, 2002.
2340	b.  The corporation may enter into quota share primary
2341	insurance agreements with authorized insurers at corporation
2342	coverage levels of 90 percent and 50 percent.
2343	c.  If the corporation determines that additional coverage
2344	levels are necessary to maximize participation in quota share
2345	primary insurance agreements by authorized insurers, the
2346	corporation may establish additional coverage levels. However,
2347	the corporation's quota share primary insurance coverage level
2348	may not exceed 90 percent.
2349	d.  Any quota share primary insurance agreement entered
2350	into between an authorized insurer and the corporation must
2351	provide for a uniform specified percentage of coverage of
2352	hurricane losses, by county or territory as set forth by the
2353	corporation board, for all eligible risks of the authorized
2354	insurer covered under the quota share primary insurance
2355	agreement.
2356	e.  Any quota share primary insurance agreement entered
2357	into between an authorized insurer and the corporation is
2358	subject to review and approval by the office. However, such
2359	agreement shall be authorized only as to insurance contracts
2360	entered into between an authorized insurer and an insured who is
2361	already insured by the corporation for wind coverage.
2362	f.  For all eligible risks covered under quota share
2363	primary insurance agreements, the exposure and coverage levels
2364	for both the corporation and authorized insurers shall be
2365	reported by the corporation to the Florida Hurricane Insurance
2366	Catastrophe Fund. For all policies of eligible risks covered
2367	under quota share primary insurance agreements, the corporation
2368	and the authorized insurer shall maintain complete and accurate
2369	records for the purpose of exposure and loss reimbursement
2370	audits as required by Florida Hurricane Insurance Catastrophe
2371	Fund rules. The corporation and the authorized insurer shall
2372	each maintain duplicate copies of policy declaration pages and
2373	supporting claims documents.
2374	g.  The corporation board shall establish in its plan of
2375	operation standards for quota share agreements which ensure that
2376	there is no discriminatory application among insurers as to the
2377	terms of quota share agreements, pricing of quota share
2378	agreements, incentive provisions if any, and consideration paid
2379	for servicing policies or adjusting claims.
2380	h.  The quota share primary insurance agreement between the
2381	corporation and an authorized insurer must set forth the
2382	specific terms under which coverage is provided, including, but
2383	not limited to, the sale and servicing of policies issued under
2384	the agreement by the insurance agent of the authorized insurer
2385	producing the business, the reporting of information concerning
2386	eligible risks, the payment of premium to the corporation, and
2387	arrangements for the adjustment and payment of hurricane claims
2388	incurred on eligible risks by the claims adjuster and personnel
2389	of the authorized insurer. Entering into a quota sharing
2390	insurance agreement between the corporation and an authorized
2391	insurer shall be voluntary and at the discretion of the
2392	authorized insurer.
2393	3.  May provide that the corporation may employ or
2394	otherwise contract with individuals or other entities to provide
2395	administrative or professional services that may be appropriate
2396	to effectuate the plan. The corporation shall have the power to
2397	borrow funds, by issuing bonds or by incurring other
2398	indebtedness, and shall have other powers reasonably necessary
2399	to effectuate the requirements of this subsection, including,
2400	without limitation, the power to issue bonds and incur other
2401	indebtedness in order to refinance outstanding bonds or other
2402	indebtedness. The corporation may, but is not required to, seek
2403	judicial validation of its bonds or other indebtedness under
2404	chapter 75. The corporation may issue bonds or incur other
2405	indebtedness, or have bonds issued on its behalf by a unit of
2406	local government pursuant to subparagraph (g)2., in the absence
2407	of a hurricane or other weather-related event, upon a
2408	determination by the corporation, subject to approval by the
2409	office, that such action would enable it to efficiently meet the
2410	financial obligations of the corporation and that such
2411	financings are reasonably necessary to effectuate the
2412	requirements of this subsection. The corporation is authorized
2413	to take all actions needed to facilitate tax-free status for any
2414	such bonds or indebtedness, including formation of trusts or
2415	other affiliated entities. The corporation shall have the
2416	authority to pledge assessments, projected recoveries from the
2417	Florida Hurricane Insurance Catastrophe Fund, other reinsurance
2418	recoverables, market equalization and other surcharges, and
2419	other funds available to the corporation as security for bonds
2420	or other indebtedness. In recognition of s. 10, Art. I of the
2421	State Constitution, prohibiting the impairment of obligations of
2422	contracts, it is the intent of the Legislature that no action be
2423	taken whose purpose is to impair any bond indenture or financing
2424	agreement or any revenue source committed by contract to such
2425	bond or other indebtedness.
2426	4.a.  Must require that the corporation operate subject to
2427	the supervision and approval of a board of governors consisting
2428	of 8 individuals who are residents of this state, from different
2429	geographical areas of this state. The Governor, the Chief
2430	Financial Officer, the President of the Senate, and the Speaker
2431	of the House of Representatives shall each appoint two members
2432	of the board, effective August 1, 2005. At least one of the two
2433	members appointed by each appointing officer must have
2434	demonstrated expertise in insurance. The Chief Financial Officer
2435	shall designate one of the appointees as chair. All board
2436	members serve at the pleasure of the appointing officer. All
2437	board members, including the chair, must be appointed to serve
2438	for 3-year terms beginning annually on a date designated by the
2439	plan. Any board vacancy shall be filled for the unexpired term
2440	by the appointing officer. The Chief Financial Officer shall
2441	appoint a technical advisory group to provide information and
2442	advice to the board of governors in connection with the board's
2443	duties under this subsection. The executive director and senior
2444	managers of the corporation shall be engaged by the board, as
2445	recommended by the Chief Financial Officer, and serve at the
2446	pleasure of the board. The executive director is responsible for
2447	employing other staff as the corporation may require, subject to
2448	review and concurrence by the board and the Chief Financial
2449	Officer.
2450	b.  The board shall create a Market Accountability Advisory
2451	Committee to assist the corporation in developing awareness of
2452	its rates and its customer and agent service levels in
2453	relationship to the voluntary market insurers writing similar
2454	coverage. The members of the advisory committee shall consist of
2455	the following 11 persons, one of whom must be elected chair by
2456	the members of the committee: four representatives, one
2457	appointed by the Florida Association of Insurance Agents, one by
2458	the Florida Association of Insurance and Financial Advisors, one
2459	by the Professional Insurance Agents of Florida, and one by the
2460	Latin American Association of Insurance Agencies; three
2461	representatives appointed by the insurers with the three highest
2462	voluntary market share of residential property insurance
2463	business in the state; one representative from the Office of
2464	Insurance Regulation; one consumer appointed by the board who is
2465	insured by the corporation at the time of appointment to the
2466	committee; one representative appointed by the Florida
2467	Association of Realtors; and one representative appointed by the
2468	Florida Bankers Association. All members must serve for 3-year
2469	terms and may serve for consecutive terms. The committee shall
2470	report to the corporation at each board meeting on insurance
2471	market issues which may include rates and rate competition with
2472	the voluntary market; service, including policy issuance, claims
2473	processing, and general responsiveness to policyholders,
2474	applicants, and agents; and matters relating to depopulation.
2475	5.  Must provide a procedure for determining the
2476	eligibility of a risk for coverage, as follows:
2477	a.  Subject to the provisions of s. 627.3517, with respect
2478	to personal lines residential risks, if the risk is offered
2479	coverage from an authorized insurer at the insurer's approved
2480	rate under either a standard policy including wind coverage or,
2481	if consistent with the insurer's underwriting rules as filed
2482	with the office, a basic policy including wind coverage, the
2483	risk is not eligible for any policy issued by the corporation.
2484	If the risk is not able to obtain any such offer, the risk is
2485	eligible for either a standard policy including wind coverage or
2486	a basic policy including wind coverage issued by the
2487	corporation; however, if the risk could not be insured under a
2488	standard policy including wind coverage regardless of market
2489	conditions, the risk shall be eligible for a basic policy
2490	including wind coverage unless rejected under subparagraph 8.
2491	The corporation shall determine the type of policy to be
2492	provided on the basis of objective standards specified in the
2493	underwriting manual and based on generally accepted underwriting
2494	practices.
2495	(I)  If the risk accepts an offer of coverage through the
2496	market assistance plan or an offer of coverage through a
2497	mechanism established by the corporation before a policy is
2498	issued to the risk by the corporation or during the first 30
2499	days of coverage by the corporation, and the producing agent who
2500	submitted the application to the plan or to the corporation is
2501	not currently appointed by the insurer, the insurer shall:
2502	(A)  Pay to the producing agent of record of the policy,
2503	for the first year, an amount that is the greater of the
2504	insurer's usual and customary commission for the type of policy
2505	written or a fee equal to the usual and customary commission of
2506	the corporation; or
2507	(B)  Offer to allow the producing agent of record of the
2508	policy to continue servicing the policy for a period of not less
2509	than 1 year and offer to pay the agent the greater of the
2510	insurer's or the corporation's usual and customary commission
2511	for the type of policy written.
2512
2513	If the producing agent is unwilling or unable to accept
2514	appointment, the new insurer shall pay the agent in accordance
2515	with sub-sub-sub-subparagraph (A).
2516	(II)  When the corporation enters into a contractual
2517	agreement for a take-out plan, the producing agent of record of
2518	the corporation policy is entitled to retain any unearned
2519	commission on the policy, and the insurer shall:
2520	(A)  Pay to the producing agent of record of the
2521	corporation policy, for the first year, an amount that is the
2522	greater of the insurer's usual and customary commission for the
2523	type of policy written or a fee equal to the usual and customary
2524	commission of the corporation; or
2525	(B)  Offer to allow the producing agent of record of the
2526	corporation policy to continue servicing the policy for a period
2527	of not less than 1 year and offer to pay the agent the greater
2528	of the insurer's or the corporation's usual and customary
2529	commission for the type of policy written.
2530
2531	If the producing agent is unwilling or unable to accept
2532	appointment, the new insurer shall pay the agent in accordance
2533	with sub-sub-sub-subparagraph (A).
2534	b.  With respect to commercial lines residential risks, if
2535	the risk is offered coverage under a policy including wind
2536	coverage from an authorized insurer at its approved rate, the
2537	risk is not eligible for any policy issued by the corporation.
2538	If the risk is not able to obtain any such offer, the risk is
2539	eligible for a policy including wind coverage issued by the
2540	corporation.
2541	(I)  If the risk accepts an offer of coverage through the
2542	market assistance plan or an offer of coverage through a
2543	mechanism established by the corporation before a policy is
2544	issued to the risk by the corporation or during the first 30
2545	days of coverage by the corporation, and the producing agent who
2546	submitted the application to the plan or the corporation is not
2547	currently appointed by the insurer, the insurer shall:
2548	(A)  Pay to the producing agent of record of the policy,
2549	for the first year, an amount that is the greater of the
2550	insurer's usual and customary commission for the type of policy
2551	written or a fee equal to the usual and customary commission of
2552	the corporation; or
2553	(B)  Offer to allow the producing agent of record of the
2554	policy to continue servicing the policy for a period of not less
2555	than 1 year and offer to pay the agent the greater of the
2556	insurer's or the corporation's usual and customary commission
2557	for the type of policy written.
2558
2559	If the producing agent is unwilling or unable to accept
2560	appointment, the new insurer shall pay the agent in accordance
2561	with sub-sub-sub-subparagraph (A).
2562	(II)  When the corporation enters into a contractual
2563	agreement for a take-out plan, the producing agent of record of
2564	the corporation policy is entitled to retain any unearned
2565	commission on the policy, and the insurer shall:
2566	(A)  Pay to the producing agent of record of the
2567	corporation policy, for the first year, an amount that is the
2568	greater of the insurer's usual and customary commission for the
2569	type of policy written or a fee equal to the usual and customary
2570	commission of the corporation; or
2571	(B)  Offer to allow the producing agent of record of the
2572	corporation policy to continue servicing the policy for a period
2573	of not less than 1 year and offer to pay the agent the greater
2574	of the insurer's or the corporation's usual and customary
2575	commission for the type of policy written.
2576
2577	If the producing agent is unwilling or unable to accept
2578	appointment, the new insurer shall pay the agent in accordance
2579	with sub-sub-sub-subparagraph (A).
2580	6.  Must include rules for classifications of risks and
2581	rates therefor.
2582	7.  Must provide that if premium and investment income for
2583	an account attributable to a particular calendar year are in
2584	excess of projected losses and expenses for the account
2585	attributable to that year, such excess shall be held in surplus
2586	in the account. Such surplus shall be available to defray
2587	deficits in that account as to future years and shall be used
2588	for that purpose prior to assessing assessable insurers and
2589	assessable insureds as to any calendar year.
2590	8.  Must provide objective criteria and procedures to be
2591	uniformly applied for all applicants in determining whether an
2592	individual risk is so hazardous as to be uninsurable. In making
2593	this determination and in establishing the criteria and
2594	procedures, the following shall be considered:
2595	a.  Whether the likelihood of a loss for the individual
2596	risk is substantially higher than for other risks of the same
2597	class; and
2598	b.  Whether the uncertainty associated with the individual
2599	risk is such that an appropriate premium cannot be determined.
2600
2601	The acceptance or rejection of a risk by the corporation shall
2602	be construed as the private placement of insurance, and the
2603	provisions of chapter 120 shall not apply.
2604	9.  Must provide that the corporation shall make its best
2605	efforts to procure catastrophe reinsurance at reasonable rates,
2606	to cover its projected 100-year probable maximum loss as
2607	determined by the board of governors.
2608	10.  Must provide that in the event of regular deficit
2609	assessments under sub-subparagraph (b)3.a. or sub-subparagraph
2610	(b)3.b., in the personal lines account, the commercial lines
2611	residential account, or the high-risk account, the corporation
2612	shall levy upon corporation policyholders in its next rate
2613	filing, or by a separate rate filing solely for this purpose, a
2614	market equalization surcharge arising from a regular assessment
2615	in such account in a percentage equal to the total amount of
2616	such regular assessments divided by the aggregate statewide
2617	direct written premium for subject lines of business for the
2618	prior calendar year. Market equalization surcharges under this
2619	subparagraph are not considered premium and are not subject to
2620	commissions, fees, or premium taxes; however, failure to pay a
2621	market equalization surcharge shall be treated as failure to pay
2622	premium.
2623	11.  The policies issued by the corporation must provide
2624	that, if the corporation or the market assistance plan obtains
2625	an offer from an authorized insurer to cover the risk at its
2626	approved rates, the risk is no longer eligible for renewal
2627	through the corporation.
2628	12.  Corporation policies and applications must include a
2629	notice that the corporation policy could, under this section, be
2630	replaced with a policy issued by an authorized insurer that does
2631	not provide coverage identical to the coverage provided by the
2632	corporation. The notice shall also specify that acceptance of
2633	corporation coverage creates a conclusive presumption that the
2634	applicant or policyholder is aware of this potential.
2635	13.  May establish, subject to approval by the office,
2636	different eligibility requirements and operational procedures
2637	for any line or type of coverage for any specified county or
2638	area if the board determines that such changes to the
2639	eligibility requirements and operational procedures are
2640	justified due to the voluntary market being sufficiently stable
2641	and competitive in such area or for such line or type of
2642	coverage and that consumers who, in good faith, are unable to
2643	obtain insurance through the voluntary market through ordinary
2644	methods would continue to have access to coverage from the
2645	corporation. When coverage is sought in connection with a real
2646	property transfer, such requirements and procedures shall not
2647	provide for an effective date of coverage later than the date of
2648	the closing of the transfer as established by the transferor,
2649	the transferee, and, if applicable, the lender.
2650	14.  Must provide that, with respect to the high-risk
2651	account, any assessable insurer with a surplus as to
2652	policyholders of $25 million or less writing 25 percent or more
2653	of its total countrywide property insurance premiums in this
2654	state may petition the office, within the first 90 days of each
2655	calendar year, to qualify as a limited apportionment company. In
2656	no event shall a limited apportionment company be required to
2657	participate in the portion of any assessment, within the high-
2658	risk account, pursuant to sub-subparagraph (b)3.a. or sub-
2659	subparagraph (b)3.b. in the aggregate which exceeds $50 million
2660	after payment of available high-risk account funds in any
2661	calendar year. However, a limited apportionment company shall
2662	collect from its policyholders any emergency assessment imposed
2663	under sub-subparagraph (b)3.d. The plan shall provide that, if
2664	the office determines that any regular assessment will result in
2665	an impairment of the surplus of a limited apportionment company,
2666	the office may direct that all or part of such assessment be
2667	deferred as provided in subparagraph (g)4. However, there shall
2668	be no limitation or deferment of an emergency assessment to be
2669	collected from policyholders under sub-subparagraph (b)3.d.
2670	15.  Must provide that the corporation appoint as its
2671	licensed agents only those agents who also hold an appointment
2672	as defined in s. 626.015(3) with an insurer who at the time of
2673	the agent's initial appointment by the corporation is authorized
2674	to write and is actually writing personal lines residential
2675	property coverage, commercial residential property coverage, or
2676	commercial nonresidential property coverage within the state.
2677	(k)  Upon a determination by the office that the conditions
2678	giving rise to the establishment and activation of the
2679	corporation no longer exist, the corporation is dissolved. Upon
2680	dissolution, the assets of the corporation shall be applied
2681	first to pay all debts, liabilities, and obligations of the
2682	corporation, including the establishment of reasonable reserves
2683	for any contingent liabilities or obligations, and all remaining
2684	assets of the corporation shall become property of the state and
2685	shall be deposited in the Florida Hurricane Insurance
2686	Catastrophe Fund. However, no dissolution shall take effect as
2687	long as the corporation has bonds or other financial obligations
2688	outstanding unless adequate provision has been made for the
2689	payment of the bonds or other financial obligations pursuant to
2690	the documents authorizing the issuance of the bonds or other
2691	financial obligations.
2692	(l)1.  Effective July 1, 2002, policies of the Residential
2693	Property and Casualty Joint Underwriting Association shall
2694	become policies of the corporation. All obligations, rights,
2695	assets and liabilities of the Residential Property and Casualty
2696	Joint Underwriting Association, including bonds, note and debt
2697	obligations, and the financing documents pertaining to them
2698	become those of the corporation as of July 1, 2002. The
2699	corporation is not required to issue endorsements or
2700	certificates of assumption to insureds during the remaining term
2701	of in-force transferred policies.
2702	2.  Effective July 1, 2002, policies of the Florida
2703	Windstorm Underwriting Association are transferred to the
2704	corporation and shall become policies of the corporation. All
2705	obligations, rights, assets, and liabilities of the Florida
2706	Windstorm Underwriting Association, including bonds, note and
2707	debt obligations, and the financing documents pertaining to them
2708	are transferred to and assumed by the corporation on July 1,
2709	2002. The corporation is not required to issue endorsement or
2710	certificates of assumption to insureds during the remaining term
2711	of in-force transferred policies.
2712	3.  The Florida Windstorm Underwriting Association and the
2713	Residential Property and Casualty Joint Underwriting Association
2714	shall take all actions as may be proper to further evidence the
2715	transfers and shall provide the documents and instruments of
2716	further assurance as may reasonably be requested by the
2717	corporation for that purpose. The corporation shall execute
2718	assumptions and instruments as the trustees or other parties to
2719	the financing documents of the Florida Windstorm Underwriting
2720	Association or the Residential Property and Casualty Joint
2721	Underwriting Association may reasonably request to further
2722	evidence the transfers and assumptions, which transfers and
2723	assumptions, however, are effective on the date provided under
2724	this paragraph whether or not, and regardless of the date on
2725	which, the assumptions or instruments are executed by the
2726	corporation. Subject to the relevant financing documents
2727	pertaining to their outstanding bonds, notes, indebtedness, or
2728	other financing obligations, the moneys, investments,
2729	receivables, choses in action, and other intangibles of the
2730	Florida Windstorm Underwriting Association shall be credited to
2731	the high-risk account of the corporation, and those of the
2732	personal lines residential coverage account and the commercial
2733	lines residential coverage account of the Residential Property
2734	and Casualty Joint Underwriting Association shall be credited to
2735	the personal lines account and the commercial lines account,
2736	respectively, of the corporation.
2737	4.  Effective July 1, 2002, a new applicant for property
2738	insurance coverage who would otherwise have been eligible for
2739	coverage in the Florida Windstorm Underwriting Association is
2740	eligible for coverage from the corporation as provided in this
2741	subsection.
2742	5.  The transfer of all policies, obligations, rights,
2743	assets, and liabilities from the Florida Windstorm Underwriting
2744	Association to the corporation and the renaming of the
2745	Residential Property and Casualty Joint Underwriting Association
2746	as the corporation shall in no way affect the coverage with
2747	respect to covered policies as defined in s. 215.555(2)(c)
2748	provided to these entities by the Florida Hurricane Insurance
2749	Catastrophe Fund. The coverage provided by the Florida Hurricane
2750	Insurance Catastrophe Fund to the Florida Windstorm Underwriting
2751	Association based on its exposures as of June 30, 2002, and each
2752	June 30 thereafter shall be redesignated as coverage for the
2753	high-risk account of the corporation. Notwithstanding any other
2754	provision of law, the coverage provided by the Florida Hurricane
2755	Insurance Catastrophe Fund to the Residential Property and
2756	Casualty Joint Underwriting Association based on its exposures
2757	as of June 30, 2002, and each June 30 thereafter shall be
2758	transferred to the personal lines account and the commercial
2759	lines account of the corporation. Notwithstanding any other
2760	provision of law, the high-risk account shall be treated, for
2761	all Florida Hurricane Insurance Catastrophe Fund purposes, as if
2762	it were a separate participating insurer with its own exposures,
2763	reimbursement premium, and loss reimbursement. Likewise, the
2764	personal lines and commercial lines accounts shall be viewed
2765	together, for all Florida Hurricane Insurance Catastrophe Fund
2766	purposes, as if the two accounts were one and represent a
2767	single, separate participating insurer with its own exposures,
2768	reimbursement premium, and loss reimbursement. The coverage
2769	provided by the Florida Hurricane Insurance Catastrophe Fund to
2770	the corporation shall constitute and operate as a full transfer
2771	of coverage from the Florida Windstorm Underwriting Association
2772	and Residential Property and Casualty Joint Underwriting to the
2773	corporation.
2774	Section 12.  Paragraph (d) of subsection (6) of section
2775	627.701, 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
2779	the form for the certificate of security. The certificate of
2780	security may be issued in any of the following circumstances:
2781	1.  A mortgage lender or other financial institution may
2782	issue a certificate of security after granting the applicant a
2783	line of credit, secured by equity in real property or other
2784	reasonable security, which line of credit may be drawn on only
2785	to pay for the deductible portion of insured construction or
2786	reconstruction after a hurricane loss. In the sole discretion of
2787	the mortgage lender or other financial institution, the line of
2788	credit may be issued to an applicant on an unsecured basis.
2789	2.  A licensed insurance agent may issue a certificate of
2790	security after obtaining for an applicant a line of credit,
2791	secured by equity in real property or other reasonable security,
2792	which line of credit may be drawn on only to pay for the
2793	deductible portion of insured construction or reconstruction
2794	after a hurricane loss. The Florida Hurricane Insurance
2795	Catastrophe Fund shall negotiate agreements creating a financing
2796	consortium to serve as an additional source of lines of credit
2797	to secure deductibles. Any licensed insurance agent may act as
2798	the agent of such consortium.
2799	3.  Any person qualified to act as a trustee for any
2800	purpose may issue a certificate of security secured by a pledge
2801	of assets, with the restriction that the assets may be drawn on
2802	only to pay for the deductible portion of insured construction
2803	or reconstruction after a hurricane loss.
2804	4.  Any insurer, including any admitted insurer or any
2805	surplus lines insurer, may issue a certificate of security after
2806	issuing the applicant a policy of supplemental insurance that
2807	will pay for 100 percent of the deductible portion of insured
2808	construction or reconstruction after a hurricane loss.
2809	5.  Any other method approved by the office upon finding
2810	that such other method provides a similar level of security as
2811	the methods specified in this paragraph and that such other
2812	method has no negative impact on residential property insurance
2813	catastrophic capacity. The legislative intent of this
2814	subparagraph is to provide the flexibility needed to achieve the
2815	public policy of expanding property insurance capacity while
2816	improving the affordability of property insurance.
2817	Section 13.  Paragraph (a) of subsection (3) of section
2818	627.7077, Florida Statutes, is amended to read:
2819	627.7077  Florida Sinkhole Insurance Facility and other
2820	matters related to affordability and availability of sinkhole
2821	insurance; feasibility study.--
2822	(3)  The feasibility study shall, at a minimum, address the
2823	following issues:
2824	(a)  Where the facility should be housed, including, but
2825	not limited to, the options of creating a separate facility or
2826	using the Citizens Property Insurance Corporation or the Florida
2827	Hurricane Insurance Catastrophe Fund.
2828	Section 14.  Citizens Property Insurance Corporation wind-
2829	storm coverage will sunset January 1, 2010. Beginning January 1,
2830	2007, all windstorm coverage provided through Citizens Property
2831	Insurance Corporation will be phased out and coverage will be
2832	provided through the Florida Catastrophe Fund.
2833	Section 15.  Sales tax revenues generated as estimated by
2834	the Office of Economic and Demographic Research due to hurricane
2835	damages and rebuilding shall be used as follows:
2836	(1)  Fifty percent of sales tax collection shall be
2837	deposited in the Florida Catastrophe Fund.
2838	(2)  Fifty percent of sales tax collection shall be
2839	deposited in the "Protect Our Homes" Mitigation Fund.
2840	Section 16.  Section 350.061, Florida Statutes, is
2841	transferred, renumbered as section 11.402, Florida Statutes,
2842	and amended to read:
2843	11.402 350.061  Public Counsel; appointment; oath;
2844	restrictions on Public Counsel and his or her employees.--
2845	(1)  The Committee on Public Service Commission Oversight
2846	shall appoint a Public Counsel by majority vote of the members
2847	of the committee to represent the general public of Florida
2848	before the Florida Public Service Commission and the Office of
2849	Insurance Regulation. The Public Counsel shall be an attorney
2850	admitted to practice before the Florida Supreme Court and shall
2851	serve at the pleasure of the Committee on Public Service
2852	Commission Oversight, subject to biennial reconfirmation by the
2853	committee. The Public Counsel shall perform his or her duties
2854	independently. Vacancies in the office shall be filled in the
2855	same manner as the original appointment.
2856	(2)  The Public Counsel shall take and subscribe to the
2857	oath of office required of state officers by the State
2858	Constitution.
2859	(3)  No officer or full-time employee of the Public Counsel
2860	shall actively engage in any other business or profession; serve
2861	as the representative of any political party or on any executive
2862	committee or other governing body thereof; serve as an
2863	executive, officer, or employee of any political party,
2864	committee, organization, or association; receive remuneration
2865	for activities on behalf of any candidate for public office; or
2866	engage on behalf of any candidate for public office in the
2867	solicitation of votes or other activities in behalf of such
2868	candidacy. Neither the Public Counsel nor any employee of the
2869	Public Counsel shall become a candidate for election to public
2870	office unless he or she shall first resign from his or her
2871	office or employment.
2872	Section 17.  Section 350.0611, Florida Statutes, is
2873	transferred, renumbered as section 11.403, Florida Statutes, and
2874	amended to read:
2875	11.403 350.0611  Public Counsel; duties and powers.--It
2876	shall be the duty of the Public Counsel to provide legal
2877	representation for the people of the state in proceedings before
2878	the Public Service Commission and the Office of Insurance
2879	Regulation commission and in proceedings before counties
2880	pursuant to s. 367.171(8). The Public Counsel shall have such
2881	powers as are necessary to carry out the duties of his or her
2882	office, including, but not limited to, the following specific
2883	powers:
2884	(1)  To recommend to the Public Service Commission
2885	commission or the counties, by petition, the commencement of any
2886	proceeding or action or to appear, in the name of the state or
2887	its citizens, in any proceeding or action before the commission
2888	or the counties.,
2889	(2)  To recommend to the Office of Insurance Regulation, by
2890	petition, the commencement of, and to appear in the name of the
2891	state or its citizens in, any proceeding or action before the
2892	office relating to:
2893	(a)  Rules governing residential property insurance; or
2894	(b)  Rate filings for residential property insurance which,
2895	pursuant to standards determined by the office, request an
2896	average statewide rate increase of 10 percent or greater as
2897	compared to the current rates in effect or the rates in effect
2898	12 months prior to the proposed effective date. The Public
2899	Counsel may not stay any final order of the Office of Insurance
2900	Regulation.
2901	(3)  To and urge in any proceeding or action to which he or
2902	she is a party therein any position that which he or she deems
2903	to be in the public interest, whether consistent or inconsistent
2904	with positions previously adopted by the commission, or the
2905	counties, or the office, and use utilize therein all forms of
2906	discovery available to attorneys in civil actions generally,
2907	subject to protective orders of the commission, or the counties,
2908	or the office, which shall be reviewable by summary procedure in
2909	the circuit courts of this state.;
2910	(4)(2)  To have access to and use of all files, records,
2911	and data of the commission, or the counties, or the office,
2912	available to any other attorney representing parties in a
2913	proceeding before the commission or the counties.;
2914	(5)(3)  In any proceeding in which he or she has
2915	participated as a party, to seek review of any determination,
2916	finding, or order of the commission, or the counties, or the
2917	office, or of any hearing examiner designated by the commission,
2918	or the counties, or the office, in the name of the state or its
2919	citizens.;
2920	(6)(4)  To prepare and issue reports, recommendations, and
2921	proposed orders to the commission or office, the Governor, and
2922	the Legislature on any matter or subject within the jurisdiction
2923	of the commission or office, and to make such recommendations as
2924	he or she deems appropriate for legislation relative to
2925	commission or office procedures, rules, jurisdiction, personnel,
2926	and functions.; and
2927	(7)(5)  To appear before other state agencies, federal
2928	agencies, and state and federal courts in connection with
2929	matters under the jurisdiction of the commission or office, in
2930	the name of the state or its citizens.
2931	Section 18.  Section 350.0612, Florida Statutes, is
2932	transferred, renumbered as section 11.404, Florida Statutes, and
2933	amended to read:
2934	11.404 350.0612  Public Counsel; location.--The Public
2935	Counsel shall maintain his or her office in Leon County on the
2936	premises of the commission or, if suitable space there cannot be
2937	provided, at such other place convenient to the offices of the
2938	Public Services Commission or the Office of Insurance Regulation
2939	commissioners as will enable him or her to carry out
2940	expeditiously the duties and functions of his or her office.
2941	Section 19.  Subsection (1) of section 408.40, Florida
2942	Statutes, is amended to read:
2943	408.40  Public Counsel.--
2944	(1)  Notwithstanding any other provisions of this chapter,
2945	the Public Counsel shall represent the public in any proceeding
2946	before the agency or its advisory panels in any administrative
2947	hearing conducted pursuant to chapter 120 or before any other
2948	state and federal agencies and courts in any issue before the
2949	agency, any court, or any agency. With respect to any such
2950	proceeding, the Public Counsel is subject to the provisions of
2951	and may use the powers granted to him or her by ss. 11.402-
2952	11.404 and ss. 350.0613 350.061-350.0614.
2953	Section 20.  Subsection (3) of section 109 of chapter 2000-
2954	141, Laws of Florida, is amended to read:
2955	Section 109.  The Legislature has reviewed the Florida
2956	Building Code that was adopted by action of the Florida Building
2957	Commission on February 15, 2000, and that was noticed for rule
2958	adoption by reference in Rule 9B-3.047, F.A.C., on February 18,
2959	2000, in the Florida Administrative Weekly on page 731. The
2960	Florida Building Commission is directed to continue the process
2961	to adopt the code, pursuant to section 120.54(3), Florida
2962	Statutes, and to incorporate the following provisions or
2963	standards for the State of Florida:
2964	(3)  For areas of the state not within the high velocity
2965	hurricane zone, the commission shall adopt, pursuant to s.
2966	553.73, Florida Statutes, the wind protection requirements of
2967	the American Society of Civil Engineers, Standard 7, 1998
2968	edition as implemented by the International Building Code, 2000
2969	edition, and as modified by the commission in its February 15,
2970	2000, adoption of the Florida Building Code for rule adoption by
2971	reference in Rule 9B-3.047, Florida Administrative Code.
2972	However, from the eastern border of Franklin County to the
2973	Florida-Alabama line, only land within 1 mile of the coast shall
2974	be subject to the windborne-debris requirements adopted by the
2975	commission. The exact location of wind speed lines shall be
2976	established by local ordinance, using recognized physical
2977	landmarks such as major roads, canals, rivers, and lake shores,
2978	wherever possible. Buildings constructed in the windborne debris
2979	region must be either designed for internal pressures that may
2980	result inside a building when a window or door is broken or a
2981	hole is created in its walls or roof by large debris, or be
2982	designed with protected openings. Except in the high velocity
2983	hurricane zone, local governments may not prohibit the option of
2984	designing buildings to resist internal pressures.
2985
2986	The Legislature declares that changes made to the proposed Rule
2987	9B-3.047, Florida Administrative Code, to implement the
2988	requirements of this act prior to October 1, 2000, are not
2989	subject to rule challenges under section 120.56, Florida
2990	Statutes. However, the entire rule, adopted pursuant to s.
2991	120.54(3), Florida Statutes, as amended after October 1, 2000,
2992	is subject to rule challenges under s. 120.56, Florida Statutes.
2993	Section 21.  Task Force on Hurricane Mitigation and
2994	Hurricane Insurance for Mobile and Manufactured Homes.--
2995	(1)  TASK FORCE CREATED.--There is created the Task Force
2996	on Hurricane Mitigation and Hurricane Insurance for Mobile and
2997	Manufactured Homes.
2998	(2)  ADMINISTRATION.--The task force shall be
2999	administratively housed within the Office of Insurance
3000	Regulation but shall operate independently of any state officer
3001	or agency. The office shall provide such administrative support
3002	as the task force deems necessary to accomplish its mission and
3003	shall provide necessary funding for the task force within the
3004	office's existing resources. The Executive Office of the
3005	Governor, the Department of Financial Services, the Office of
3006	Insurance Regulation, the Department of Highway Safety and Motor
3007	Vehicles, and the Department of Community Affairs shall provide
3008	substantive staff support for the task force.
3009	(3)  MEMBERSHIP.--The members of the task force shall be
3010	appointed as follows:
3011	(a)  The Governor shall appoint two members who have
3012	expertise in financial matters, one of whom is a representative
3013	of the mobile or manufactured home industry and one of whom is a
3014	representative of insurance consumers.
3015	(b)  The Chief Financial Officer shall appoint two members
3016	who have expertise in financial matters, one of whom is a
3017	representative of a property insurer writing mobile or
3018	manufactured homeowners insurance in this state and one of whom
3019	is 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
3022	appoint one member.
3023	(e)  The Commissioner of Insurance Regulation or his or her
3024	designee shall serve as an ex officio voting member of the task
3025	force.
3026	(f)  The Executive Director of Citizens Property Insurance
3027	or his or her designee shall serve as an ex officio voting
3028	member of the task force.
3029	(g)  The Chief Executive Officer of the Federal Alliance
3030	for Safe Homes, Incorporated or his or her designee shall serve
3031	as an ex officio voting member of the task force.
3032
3033	Members of the task force shall serve without compensation but
3034	may receive reimbursement for per diem and travel expenses as
3035	provided in s. 112.061, Florida Statutes.
3036	(4)  PURPOSE AND INTENT.--The Legislature recognizes the
3037	continued availability of hurricane insurance coverage for
3038	mobile and manufactured home owners in this state is essential
3039	to the state's economic survival. The Legislature further
3040	recognizes hurricane mitigation measures and building codes may
3041	reduce the likelihood or amount of damage to mobile or
3042	manufactured homes in the event of a hurricane. The Legislature
3043	further recognizes mobile and manufactured homes provide safe
3044	and affordable housing to many residents of this state. The
3045	purpose of the task force is to make recommendations to the
3046	legislative and executive branches of this state's government
3047	relating to the creation and maintenance of insurance capacity
3048	in the private sector and public sector that is sufficient to
3049	ensure that all mobile and manufactured home owners in this
3050	state are able to obtain appropriate insurance coverage for
3051	hurricane losses and relating to the effectiveness of hurricane
3052	mitigation measures for mobile or manufactured homes as further
3053	described in this section.
3054	(5)  SPECIFIC TASKS.--The task force shall conduct such
3055	research and hearings as the task force deems necessary to
3056	achieve the purposes specified in subsection (4) and shall
3057	develop information on relevant issues, including, but not
3058	limited to, the following issues:
3059	(a)  Whether this state currently has sufficient hurricane
3060	insurance capacity for mobile and manufactured homes to ensure
3061	the continuation of a healthy, competitive marketplace, taking
3062	into consideration private-sector and public-sector resources.
3063	(b)  Identifying the future demands on the hurricane
3064	insurance capacity of this state, taking into account population
3065	growth, coastal growth, and anticipated future hurricane
3066	activity.
3067	(c)  Identifying how many mobile or manufactured homes are
3068	occupied in this state, how many mobile or manufactured homes
3069	are occupied by owners who also own the land to which the unit
3070	is attached, the age or average age of mobile or manufactured
3071	homes, the location of such homes, and the size of such homes.
3072	(d)  The extent to which the growth in insurance on mobile
3073	or manufactured homes in Citizens Property Insurance Corporation
3074	is attributable to insufficient insurance capacity.
3075	(e)  The extent to which the growth trends of Citizens
3076	Property Insurance Corporation create long-term problems for
3077	mobile and manufactured home owners in this state and for other
3078	persons and businesses that depend on a viable market.
3079	(f)  The extent to which insurance discounts, credits, or
3080	other rate differentials or reductions in the hurricane
3081	insurance deductible for a mobile or manufactured homeowner who
3082	takes mitigative measures would increase hurricane insurance
3083	capacity for mobile or manufactured homeowners.
3084	(g)  The extent hurricane mitigation enhancements to mobile
3085	or manufactured homes decreases the likelihood of damage from a
3086	hurricane or decreases the amount of damage from a hurricane.
3087	(h)  The extent to which the building codes reduce the
3088	likelihood of damage or amount of damage to mobile or
3089	manufactured homes.
3090	(6)  REPORT AND RECOMMENDATIONS.--By January 1, 2007, the
3091	task force shall provide a report containing findings relating
3092	to the tasks identified in subsection (5) and recommendations
3093	consistent with the purposes of this section and also consistent
3094	with such findings. The task force shall submit the report to
3095	the Governor, the Chief Financial Officer, the President of the
3096	Senate, and the Speaker of the House of Representatives. The
3097	task force may also submit such interim reports as the task
3098	force deems appropriate.
3099	(7)  EXPIRATION.--The task force shall expire on January 2,
3100	2007.
3101	Section 22.  By January 1, 2007, the Office of Insurance
3102	Regulation shall submit a report to the President of the Senate,
3103	the Speaker of the House of Representatives, the minority party
3104	leaders of the Senate and the House of Representatives, and the
3105	chairs of the standing committees of the Senate and the House of
3106	Representatives having jurisdiction over matters relating to
3107	property and casualty insurance. In preparing the report, the
3108	office shall consult with the Department of Highway Safety and
3109	Motor Vehicles, the Department of Community Affairs, the Florida
3110	Building Commission, the Florida Home Builders Association,
3111	representatives of the mobile and manufactured home industry,
3112	representatives of the property and casualty insurance industry,
3113	and any other party the office determines is appropriate. The
3114	report shall include findings and recommendations on the
3115	insurability of attached or free standing structures to
3116	residential homes, mobile, or manufactured homes, such as
3117	carports or pool enclosures; the increase or decrease in
3118	insurance costs associated with insuring such structures; the
3119	feasibility of insuring such structures; the impact on
3120	homeowners of not having insurance coverage for such structures;
3121	the ability of mitigation measures relating to such structures
3122	to reduce risk and loss; and such other related information as
3123	the office determines is appropriate for the Legislature to
3124	consider.
3125	Section 23.  (1)  The Office of Insurance Regulation, in
3126	consultation with the Department of Community Affairs, the
3127	Department of Financial Services, the Federal Alliance for Safe
3128	Homes, the Florida Insurance Council, the Florida Home Builders
3129	Association, the Florida Manufactured Housing Association, the
3130	Risk and Insurance Department of Florida State University, and
3131	the Institute for Business and Homes Safety, shall study and
3132	develop a program that will provide an objective rating system
3133	that will allow homeowners to evaluate the relative ability of
3134	Florida properties to withstand the wind load from a sustained
3135	severe tropical storm or hurricane.
3136	(2)  The rating system will be designed in a manner that is
3137	easy to understand for the property owner, based on proven
3138	readily verifiable mitigation techniques and devices, and able
3139	to be implemented based on a visual inspection program. The
3140	Department of Financial Services shall implement a pilot program
3141	for use in the Florida Comprehensive Hurricane Damage Mitigation
3142	Program.
3143	(3)  The Department shall provide a report to the Governor,
3144	the President of the Senate, and the Speaker of the House of
3145	Representatives by March 31, 2007, detailing the nature and
3146	construction of the rating scale, its effectiveness based on
3147	implementation in a pilot program, and an operational plan for
3148	statewide 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
3151	the Department of Financial Services for the Florida Hurricane
3152	Damage Prevention Endowment as a nonrecurring appropriation for
3153	the purposes specified in s. 215.558, Florida Statutes.
3154	(2)  The sum of $400 million is appropriated from the
3155	General Revenue Fund to the Department of Financial Services as
3156	a nonrecurring appropriation for the purposes specified in s.
3157	215.5586, Florida Statutes.
3158	(3)  Funds provided in subsections (1) and (2) shall be
3159	transferred by the department to the Florida Hurricane Damage
3160	Prevention Trust Fund, as created in s. 215.5585, Florida
3161	Statutes.
3162	(4)  For fiscal year 2006-2007, the recurring sum of $5
3163	million is appropriated to the Department of Financial Services
3164	from the Florida Hurricane Damage Prevention Trust Fund, Special
3165	Category ? 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
3168	Services from the Florida Hurricane Damage Prevention Trust
3169	Fund, Special Category ? Florida Comprehensive Hurricane Damage
3170	Mitigation Program. The department may spend up to 1 percent of
3171	the funds appropriated to administer the program.
3172	Notwithstanding s. 216.301, Florida Statutes, and pursuant to s.
3173	216.351, Florida Statutes, any unexpended balance from this
3174	appropriation shall be carried forward at the end of each fiscal
3175	year until the 2010-2011 fiscal year. At the end of the 2010-
3176	2011 fiscal year, any obligated funds for qualified projects
3177	that are not yet disbursed shall remain with the department to
3178	be used for the purposes of this act. Any unobligated funds of
3179	this appropriation shall revert to the Florida Hurricane Damage
3180	Prevention 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
3183	Affairs from the Florida Hurricane Damage Prevention Trust Fund,
3184	Special Category ? Florida Comprehensive Hurricane Damage
3185	Mitigation Program. The department may spend up to 5 percent of
3186	the funds appropriated to administer the Manufactured Housing
3187	and Mobile Home Hurricane Mitigation Program. Notwithstanding s.
3188	216.301, Florida Statutes, and pursuant to s. 216.351, Florida
3189	Statutes, any unexpended balance from this appropriation shall
3190	be carried forward at the end of each fiscal year until the
3191	2010-2011 fiscal year. At the end of the 2010-2011 fiscal year,
3192	any obligated funds for qualified projects that are not yet
3193	disbursed shall remain with the department to be used for the
3194	purposes of this act. Any unobligated funds of this
3195	appropriation shall revert to the Florida Hurricane Damage
3196	Prevention 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
3199	General Revenue Fund to the Department of Financial Services for
3200	transfer to the Citizens Property Insurance Corporation to avoid
3201	regular assessments on assessable insurers, as authorized under
3202	s. 627.351(6)(b)3.b., Florida Statutes, for the 2005 Plan Year
3203	deficit. The board of governors of the corporation shall use
3204	appropriated state moneys to fund that portion of the 2005 Plan
3205	Year deficit which would result in the levying of regular
3206	assessments in the commercial lines, personal lines, and high-
3207	risk accounts. The transfer made by the department to the
3208	corporation shall be limited to the amount of the total regular
3209	assessments that were authorized by law to cover the 2005 Plan
3210	Year deficit. Any unused and remaining funds in this
3211	appropriation shall revert to the General Revenue Fund.
3212	(2)  The corporation shall amortize over a 10-year period
3213	any emergency assessments resulting from the 2005 Plan Year
3214	deficit.
3215	Section 26.  For fiscal year 2006-2007, the sums of
3216	$250,000 in recurring funds and $425,000 in nonrecurring funds
3217	are appropriated from the Insurance Regulatory Trust Fund in the
3218	Department of Financial Services to the Office of Insurance
3219	Regulation for the purpose of carrying out reporting and
3220	administrative responsibilities of this act.
3221	Section 27.  Task Force on Hurricane Mitigation and
3222	Hurricane Insurance for Mobile and Manufactured Homes.--
3223	(1)  TASK FORCE CREATED.--There is created the Task Force
3224	on Hurricane Mitigation and Hurricane Insurance for Mobile and
3225	Manufactured Homes.
3226	(2)  ADMINISTRATION.--The task force shall be
3227	administratively housed within the Office of Insurance
3228	Regulation but shall operate independently of any state officer
3229	or agency. The office shall provide such administrative support
3230	as the task force deems necessary to accomplish its mission and
3231	shall provide necessary funding for the task force within the
3232	office's existing resources. The Executive Office of the
3233	Governor, the Department of Financial Services, the Office of
3234	Insurance Regulation, the Department of Highway Safety and Motor
3235	Vehicles, and the Department of Community Affairs shall provide
3236	substantive staff support for the task force.
3237	(3)  MEMBERSHIP.--The members of the task force shall be
3238	appointed as follows:
3239	(a)  The Governor shall appoint two members who have
3240	expertise in financial matters, one of whom is a representative
3241	of the mobile or manufactured home industry and one of whom is a
3242	representative of insurance consumers.
3243	(b)  The Chief Financial Officer shall appoint two members
3244	who have expertise in financial matters, one of whom is a
3245	representative of a property insurer writing mobile or
3246	manufactured homeowners insurance in this state and one of whom
3247	is 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
3250	appoint one member.
3251	(e)  The Commissioner of Insurance Regulation or his or her
3252	designee shall serve as an ex officio voting member of the task
3253	force.
3254	(f)  The Executive Director of Citizens Property Insurance
3255	or his or her designee shall serve as an ex officio voting
3256	member of the task force.
3257	(g)  The Chief Executive Officer of the Federal Alliance
3258	for Safe Homes, Incorporated or his or her designee shall serve
3259	as an ex officio voting member of the task force.
3260
3261	Members of the task force shall serve without compensation but
3262	may receive reimbursement for per diem and travel expenses as
3263	provided in s. 112.061, Florida Statutes.
3264	(4)  PURPOSE AND INTENT.--The Legislature recognizes the
3265	continued availability of hurricane insurance coverage for
3266	mobile and manufactured home owners in this state is essential
3267	to the state's economic survival. The Legislature further
3268	recognizes hurricane mitigation measures and building codes may
3269	reduce the likelihood or amount of damage to mobile or
3270	manufactured homes in the event of a hurricane. The Legislature
3271	further recognizes mobile and manufactured homes provide safe
3272	and affordable housing to many residents of this state. The
3273	purpose of the task force is to make recommendations to the
3274	legislative and executive branches of this state's government
3275	relating to the creation and maintenance of insurance capacity
3276	in the private sector and public sector that is sufficient to
3277	ensure that all mobile and manufactured home owners in this
3278	state are able to obtain appropriate insurance coverage for
3279	hurricane losses and relating to the effectiveness of hurricane
3280	mitigation measures for mobile or manufactured homes as further
3281	described in this section.
3282	(5)  SPECIFIC TASKS.--The task force shall conduct such
3283	research and hearings as the task force deems necessary to
3284	achieve the purposes specified in subsection (4) and shall
3285	develop information on relevant issues, including, but not
3286	limited to, the following issues:
3287	(a)  Whether this state currently has sufficient hurricane
3288	insurance capacity for mobile and manufactured homes to ensure
3289	the continuation of a healthy, competitive marketplace, taking
3290	into consideration private-sector and public-sector resources.
3291	(b)  Identifying the future demands on the hurricane
3292	insurance capacity of this state, taking into account population
3293	growth, coastal growth, and anticipated future hurricane
3294	activity.
3295	(c)  Identifying how many mobile or manufactured homes are
3296	occupied in this state, how many mobile or manufactured homes
3297	are occupied by owners who also own the land to which the unit
3298	is attached, the age or average age of mobile or manufactured
3299	homes, the location of such homes, and the size of such homes.
3300	(d)  The extent to which the growth in insurance on mobile
3301	or manufactured homes in Citizens Property Insurance Corporation
3302	is attributable to insufficient insurance capacity.
3303	(e)  The extent to which the growth trends of Citizens
3304	Property Insurance Corporation create long-term problems for
3305	mobile and manufactured home owners in this state and for other
3306	persons and businesses that depend on a viable market.
3307	(f)  The extent to which insurance discounts, credits, or
3308	other rate differentials or reductions in the hurricane
3309	insurance deductible for a mobile or manufactured homeowner who
3310	takes mitigative measures would increase hurricane insurance
3311	capacity for mobile or manufactured homeowners.
3312	(g)  The extent hurricane mitigation enhancements to mobile
3313	or manufactured homes decreases the likelihood of damage from a
3314	hurricane or decreases the amount of damage from a hurricane.
3315	(h)  The extent to which the building codes reduce the
3316	likelihood of damage or amount of damage to mobile or
3317	manufactured homes.
3318	(6)  REPORT AND RECOMMENDATIONS.--By January 1, 2007, the
3319	task force shall provide a report containing findings relating
3320	to the tasks identified in subsection (5) and recommendations
3321	consistent with the purposes of this section and also consistent
3322	with such findings. The task force shall submit the report to
3323	the Governor, the Chief Financial Officer, the President of the
3324	Senate, and the Speaker of the House of Representatives. The
3325	task force may also submit such interim reports as the task
3326	force deems appropriate.
3327	(7)  EXPIRATION.--The task force shall expire on January 2,
3328	2007.
3329	Section 28.  By January 1, 2007, the Office of Insurance
3330	Regulation shall submit a report to the President of the Senate,
3331	the Speaker of the House of Representatives, the minority party
3332	leaders of the Senate and the House of Representatives, and the
3333	chairs of the standing committees of the Senate and the House of
3334	Representatives having jurisdiction over matters relating to
3335	property and casualty insurance. In preparing the report, the
3336	office shall consult with the Department of Highway Safety and
3337	Motor Vehicles, the Department of Community Affairs, the Florida
3338	Building Commission, the Florida Home Builders Association,
3339	representatives of the mobile and manufactured home industry,
3340	representatives of the property and casualty insurance industry,
3341	and any other party the office determines is appropriate. The
3342	report shall include findings and recommendations on the
3343	insurability of attached or free standing structures to
3344	residential homes, mobile, or manufactured homes, such as
3345	carports or pool enclosures; the increase or decrease in
3346	insurance costs associated with insuring such structures; the
3347	feasibility of insuring such structures; the impact on
3348	homeowners of not having insurance coverage for such structures;
3349	the ability of mitigation measures relating to such structures
3350	to reduce risk and loss; and such other related information as
3351	the office determines is appropriate for the Legislature to
3352	consider.
3353	Section 29.  (1)  The Office of Insurance Regulation, in
3354	consultation with the Department of Community Affairs, the
3355	Department of Financial Services, the Federal Alliance for Safe
3356	Homes, the Florida Insurance Council, the Florida Home Builders
3357	Association, the Florida Manufactured Housing Association, the
3358	Risk and Insurance Department of Florida State University, and
3359	the Institute for Business and Homes Safety, shall study and
3360	develop a program that will provide an objective rating system
3361	that will allow homeowners to evaluate the relative ability of
3362	Florida properties to withstand the wind load from a sustained
3363	severe tropical storm or hurricane.
3364	(2)  The rating system will be designed in a manner that is
3365	easy to understand for the property owner, based on proven
3366	readily verifiable mitigation techniques and devices, and able
3367	to be implemented based on a visual inspection program. The
3368	Department of Financial Services shall implement a pilot program
3369	for use in the Florida Comprehensive Hurricane Damage Mitigation
3370	Program.
3371	(3)  The Department shall provide a report to the Governor,
3372	the President of the Senate, and the Speaker of the House of
3373	Representatives by March 31, 2007, detailing the nature and
3374	construction of the rating scale, its effectiveness based on
3375	implementation in a pilot program, and an operational plan for
3376	statewide 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
3379	the Department of Financial Services for the Florida Hurricane
3380	Damage Prevention Endowment as a nonrecurring appropriation for
3381	the purposes specified in s. 215.558, Florida Statutes.
3382	(2)  The sum of $400 million is appropriated from the
3383	General Revenue Fund to the Department of Financial Services as
3384	a nonrecurring appropriation for the purposes specified in s.
3385	215.5586, Florida Statutes.
3386	(3)  Funds provided in subsections (1) and (2) shall be
3387	transferred by the department to the Florida Hurricane Damage
3388	Prevention Trust Fund, as created in s. 215.5585, Florida
3389	Statutes.
3390	(4)  For fiscal year 2006-2007, the recurring sum of $5
3391	million is appropriated to the Department of Financial Services
3392	from the Florida Hurricane Damage Prevention Trust Fund, Special
3393	Category ? 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
3396	Services from the Florida Hurricane Damage Prevention Trust
3397	Fund, Special Category ? Florida Comprehensive Hurricane Damage
3398	Mitigation Program. The department may spend up to 1 percent of
3399	the funds appropriated to administer the program.
3400	Notwithstanding s. 216.301, Florida Statutes, and pursuant to s.
3401	216.351, Florida Statutes, any unexpended balance from this
3402	appropriation shall be carried forward at the end of each fiscal
3403	year until the 2010-2011 fiscal year. At the end of the 2010-
3404	2011 fiscal year, any obligated funds for qualified projects
3405	that are not yet disbursed shall remain with the department to
3406	be used for the purposes of this act. Any unobligated funds of
3407	this appropriation shall revert to the Florida Hurricane Damage
3408	Prevention 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
3411	Affairs from the Florida Hurricane Damage Prevention Trust Fund,
3412	Special Category ? Florida Comprehensive Hurricane Damage
3413	Mitigation Program. The department may spend up to 5 percent of
3414	the funds appropriated to administer the Manufactured Housing
3415	and Mobile Home Hurricane Mitigation Program. Notwithstanding s.
3416	216.301, Florida Statutes, and pursuant to s. 216.351, Florida
3417	Statutes, any unexpended balance from this appropriation shall
3418	be carried forward at the end of each fiscal year until the
3419	2010-2011 fiscal year. At the end of the 2010-2011 fiscal year,
3420	any obligated funds for qualified projects that are not yet
3421	disbursed shall remain with the department to be used for the
3422	purposes of this act. Any unobligated funds of this
3423	appropriation shall revert to the Florida Hurricane Damage
3424	Prevention 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
3427	General Revenue Fund to the Department of Financial Services for
3428	transfer to the Citizens Property Insurance Corporation to avoid
3429	regular assessments on assessable insurers, as authorized under
3430	s. 627.351(6)(b)3.b., Florida Statutes, for the 2005 Plan Year
3431	deficit. The board of governors of the corporation shall use
3432	appropriated state moneys to fund that portion of the 2005 Plan
3433	Year deficit which would result in the levying of regular
3434	assessments in the commercial lines, personal lines, and high-
3435	risk accounts. The transfer made by the department to the
3436	corporation shall be limited to the amount of the total regular
3437	assessments that were authorized by law to cover the 2005 Plan
3438	Year deficit. Any unused and remaining funds in this
3439	appropriation shall revert to the General Revenue Fund.
3440	(2)  The corporation shall amortize over a 10-year period
3441	any emergency assessments resulting from the 2005 Plan Year
3442	deficit.
3443	Section 32.  For fiscal year 2006-2007, the sums of
3444	$250,000 in recurring funds and $425,000 in nonrecurring funds
3445	are appropriated from the Insurance Regulatory Trust Fund in the
3446	Department of Financial Services to the Office of Insurance
3447	Regulation for the purpose of carrying out reporting and
3448	administrative responsibilities of this act.
3449	Section 33.  Except as otherwise expressly provided in this
3450	act, 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
3455	An act relating to property and casualty insurance;
3456	amending s. 215.555, F.S.; revising findings and purposes;
3457	revising definitions; changing the name of the fund to the
3458	Florida Hurricane Insurance Fund; revising requirements
3459	for reimbursement contracts; providing requirements,
3460	procedures, and methodologies for policyholders to pay
3461	premiums to insurers, insurers to remit premiums to the
3462	fund, insurers to reimburse policyholders for hurricane
3463	losses, and the state to reimburse insurers from the fund
3464	for payments to policyholders; deleting a required annual
3465	appropriation from the investment income of the Florida
3466	Hurricane Catastrophe Fund for certain purposes; providing
3467	coverage limitations; providing exceptions; providing for
3468	discounted premiums to certain insurers under certain
3469	circumstances; deleting conflicting provisions; revising
3470	reimbursement premium provisions to conform; renaming the
3471	Florida Hurricane Catastrophe Fund Finance Corporation as
3472	the Florida Hurricane Insurance Fund Finance Corporation;
3473	making conforming changes; creating s. 215.558, F.S.;
3474	creating the Florida Hurricane Damage Prevention
3475	Endowment; providing a purpose and legislative intent;
3476	providing definitions; providing requirements and
3477	authority for investment of endowment assets by the State
3478	Board of Administration; requiring a report to the
3479	Legislature; providing for payment of the board's
3480	investment services' costs and fees from the endowment;
3481	providing requirements of the Department of Financial
3482	Services in providing financial incentives for residential
3483	hurricane damage prevention activities; providing for an
3484	interest-free loan program; providing program criteria and
3485	requirements; creating an advisory council for certain
3486	purposes; providing for appointment of members; requiring
3487	members to serve without compensation; providing for per
3488	diem and travel expenses; creating s. 215.5586, F.S.;
3489	establishing the Florida Comprehensive Hurricane Damage
3490	Mitigation Program within the Department of Financial
3491	Services; providing qualifications for the program
3492	administrator; providing program components and
3493	requirements; providing for wind certification and
3494	hurricane mitigation inspections; providing inspection
3495	requirements; providing inspector eligibility
3496	requirements; providing for grants; providing grant
3497	requirements; providing for loans; providing public
3498	education and consumer awareness requirements; creating an
3499	advisory council; providing for appointment of members;
3500	specifying service without compensation; providing for per
3501	diem and travel expense reimbursements; requiring the
3502	department to adopt rules; amending. s. 215.559, F.S.;
3503	creating the Manufactured Housing and Mobile Home
3504	Hurricane Mitigation Program for certain purposes;
3505	requiring the Department of Community Affairs to develop
3506	the program in consultation with certain entities;
3507	specifying requirements of the program; specifying the
3508	program as a matching grant program for improvement of
3509	mobile homes and manufactured homes; providing for
3510	distribution of the grants to the Department of Community
3511	Affairs for certain purposes; requiring Citizens Property
3512	Insurance Corporation to grant certain insurance
3513	discounts, credits, rate differentials, or deductible
3514	reductions for property insurance premiums for certain
3515	manufactured home or mobile home owners; specifying
3516	criteria for such premiums; requiring a program report
3517	each year to the Governor and Legislature; providing
3518	report requirements; amending ss. 215.556, 624.424,
3519	624.5091, 627.062, 627.0628, 627.0629, 627.351, 627.701,
3520	and 627.7077, F.S., to conform; providing a for the sunset
3521	of Citizens Property Insurance Corporation wind-storm
3522	coverage; providing for the use of sales tax revenues
3523	generated as estimated by the Office of Economic and
3524	Demographic Research; amending and renumbering ss.
3525	350.061, 350.0611, and 350.0612, F.S.; amending provisions
3526	relating to the Office of Insurance Regulation; amending
3527	s. 408.40, F.S.; correcting a cross-reference; amending s.
3528	109(3), ch. 2000-141, Laws of Florida; deleting a
3529	limitation subjecting certain portions of coastal counties
3530	to certain debris requirements adopted by the Florida
3531	Building Commission; creating the Task Force on Hurricane
3532	Mitigation and Hurricane Insurance for Mobile and
3533	Manufactured Homes; providing for administration by the
3534	office; specifying additional agency administrative staff;
3535	providing for appointment of task force members; requiring
3536	members to serve without compensation; providing for per
3537	diem and travel expenses; providing purpose and intent;
3538	requiring the task force to address specified issues;
3539	requiring a report to the Governor, Chief Financial
3540	Officer, and Legislature; providing for expiration of the
3541	task force; requiring the Office of Insurance Regulation
3542	to submit reports to the Legislature relating to the
3543	insurability of certain attached or free standing
3544	structures ; providing report requirements; providing
3545	duties of the office; providing appropriations; specifying
3546	uses and purposes of appropriations; providing effective
3547	dates.

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