HB 1307

1	A bill to be entitled
2	An act relating to property insurance; amending s.
3	624.404, F.S.; prohibiting certain insurers from
4	transacting residential property insurance business under
5	certain circumstances; prohibiting private passenger
6	automobile insurance insurers from writing such insurance
7	under certain circumstances; amending s. 627.062, F.S.;
8	deleting "use and file" provisions; amending s. 627.351,
9	F.S.; eliminating the distinction between homestead and
10	nonhomestead properties for coverage under the Citizens
11	Property Insurance Corporation; creating s. 627.70185,
12	F.S.; providing a prohibition and requirements for
13	insurers in denying coverage; providing an effective date.
14
15	Be It Enacted by the Legislature of the State of Florida:
16
17	Section 1.  Subsection (8) is added to section 624.404,
18	Florida Statutes, to read:
19	624.404  General eligibility of insurers for certificate of
20	authority.--To qualify for and hold authority to transact
21	insurance in this state, an insurer must be otherwise in
22	compliance with this code and with its charter powers and must
23	be an incorporated stock insurer, an incorporated mutual
24	insurer, or a reciprocal insurer, of the same general type as
25	may be formed as a domestic insurer under this code; except
26	that:
27	(8)  Effective January 1, 2008, a new certificate of
28	authority may not be issued to an insurer domiciled in this
29	state for the transaction of residential property insurance
30	business in this state if the insurer is a wholly owned
31	subsidiary of an insurer authorized in any other state.
32	Section 2.  Effective January 1, 2008, an insurer writing
33	private passenger automobile insurance in this state may not
34	continue to write such insurance if the insurer writes
35	homeowners' insurance in another state but not in this state
36	unless the insurer writing private passenger automobile
37	insurance in this state is affiliated with an insurer writing
38	homeowners' insurance in this state.
39	Section 3.  Paragraphs (a) and (h) of subsection (2) of
40	section 627.062, Florida Statutes, as amended by section 18 of
41	chapter 2007-1, Laws of Florida, are amended to read:
42	627.062  Rate standards.--
43	(2)  As to all such classes of insurance:
44	(a)  Insurers or rating organizations shall establish and
45	use rates, rating schedules, or rating manuals to allow the
46	insurer a reasonable rate of return on such classes of insurance
47	written in this state. A copy of rates, rating schedules, rating
48	manuals, premium credits or discount schedules, and surcharge
49	schedules, and changes thereto, shall be filed with the office
50	under one of the following procedures except as provided in
51	subparagraph 3.:
52	1.  If the filing is made at least 90 days before the
53	proposed effective date and the filing is not implemented during
54	the office's review of the filing and any proceeding and
55	judicial review, then such filing shall be considered a "file
56	and use" filing. In such case, the office shall finalize its
57	review by issuance of a notice of intent to approve or a notice
58	of intent to disapprove within 90 days after receipt of the
59	filing. The notice of intent to approve and the notice of intent
60	to disapprove constitute agency action for purposes of the
61	Administrative Procedure Act. Requests for supporting
62	information, requests for mathematical or mechanical
63	corrections, or notification to the insurer by the office of its
64	preliminary findings shall not toll the 90-day period during any
65	such proceedings and subsequent judicial review. The rate shall
66	be deemed approved if the office does not issue a notice of
67	intent to approve or a notice of intent to disapprove within 90
68	days after receipt of the filing.
69	2.  If the filing is not made in accordance with the
70	provisions of subparagraph 1., such filing shall be made as soon
71	as practicable, but no later than 30 days after the effective
72	date, and shall be considered a "use and file" filing. An
73	insurer making a "use and file" filing is potentially subject to
74	an order by the office to return to policyholders portions of
75	rates found to be excessive, as provided in paragraph (h).
76	2.3.  For all filings made on or before December 31, 2008,
77	an insurer seeking a rate that is greater than the rate most
78	recently approved by the office shall make a "file and use"
79	filing.
80	(h)  In the event the office finds that a rate or rate
81	change is excessive, inadequate, or unfairly discriminatory, the
82	office shall issue an order of disapproval specifying that a new
83	rate or rate schedule which responds to the findings of the
84	office be filed by the insurer. The office shall further order,
85	for any "use and file" filing made in accordance with
86	subparagraph (a)2., that premiums charged each policyholder
87	constituting the portion of the rate above that which was
88	actuarially justified be returned to such policyholder in the
89	form of a credit or refund. If the office finds that an
90	insurer's rate or rate change is inadequate, the new rate or
91	rate schedule filed with the office in response to such a
92	finding shall be applicable only to new or renewal business of
93	the insurer written on or after the effective date of the
94	responsive filing.
95
96	The provisions of this subsection shall not apply to workers'
97	compensation and employer's liability insurance and to motor
98	vehicle insurance.
99	Section 4.  Paragraphs (a) and (b) of subsection (6) of
100	section 627.351, Florida Statutes, as amended by section 21 of
101	chapter 2007-1, Laws of Florida, are amended to read:
102	627.351  Insurance risk apportionment plans.--
103	(6)  CITIZENS PROPERTY INSURANCE CORPORATION.--
104	(a)1.  The Legislature finds that actual and threatened
105	catastrophic losses to property in this state from hurricanes
106	have caused insurers to be unwilling or unable to provide
107	property insurance coverage to the extent sought and needed. It
108	is in the public interest and a public purpose to assist in
109	assuring that property in the state is insured so as to
110	facilitate the remediation, reconstruction, and replacement of
111	damaged or destroyed property in order to reduce or avoid the
112	negative effects otherwise resulting to the public health,
113	safety, and welfare; to the economy of the state; and to the
114	revenues of the state and local governments needed to provide
115	for the public welfare. It is necessary, therefore, to provide
116	property insurance to applicants who are in good faith entitled
117	to procure insurance through the voluntary market but are unable
118	to do so. The Legislature intends by this subsection that
119	property insurance be provided and that it continues, as long as
120	necessary, through an entity organized to achieve efficiencies
121	and economies, while providing service to policyholders,
122	applicants, and agents that is no less than the quality
123	generally provided in the voluntary market, all toward the
124	achievement of the foregoing public purposes. Because it is
125	essential for the corporation to have the maximum financial
126	resources to pay claims following a catastrophic hurricane, it
127	is the intent of the Legislature that the income of the
128	corporation be exempt from federal income taxation and that
129	interest on the debt obligations issued by the corporation be
130	exempt from federal income taxation.
131	2.  The Residential Property and Casualty Joint
132	Underwriting Association originally created by this statute
133	shall be known, as of July 1, 2002, as the Citizens Property
134	Insurance Corporation. The corporation shall provide insurance
135	for residential and commercial property, for applicants who are
136	in good faith entitled, but are unable, to procure insurance
137	through the voluntary market. The corporation shall operate
138	pursuant to a plan of operation approved by order of the
139	Financial Services Commission. The plan is subject to continuous
140	review by the commission. The commission may, by order, withdraw
141	approval of all or part of a plan if the commission determines
142	that conditions have changed since approval was granted and that
143	the purposes of the plan require changes in the plan. The
144	corporation shall continue to operate pursuant to the plan of
145	operation approved by the Office of Insurance Regulation until
146	October 1, 2006. For the purposes of this subsection,
147	residential coverage includes both personal lines residential
148	coverage, which consists of the type of coverage provided by
149	homeowner's, mobile home owner's, dwelling, tenant's,
150	condominium unit owner's, and similar policies, and commercial
151	lines residential coverage, which consists of the type of
152	coverage provided by condominium association, apartment
153	building, and similar policies.
154	3.  For the purposes of this subsection, the term
155	"homestead property" means:
156	a.  Property that has been granted a homestead exemption
157	under chapter 196;
158	b.  Property for which the owner has a current, written
159	lease with a renter for a term of at least 7 months and for
160	which the dwelling is insured by the corporation for $200,000 or
161	less;
162	c.  An owner-occupied mobile home or manufactured home, as
163	defined in s. 320.01, which is permanently affixed to real
164	property, is owned by a Florida resident, and has been granted a
165	homestead exemption under chapter 196 or, if the owner does not
166	own the real property, the owner certifies that the mobile home
167	or manufactured home is his or her principal place of residence;
168	d.  Tenant's coverage;
169	e.  Commercial lines residential property; or
170	f.  Any county, district, or municipal hospital; a hospital
171	licensed by any not-for-profit corporation qualified under s.
172	501(c)(3) of the United States Internal Revenue Code; or a
173	continuing care retirement community that is certified under
174	chapter 651 and that receives an exemption from ad valorem taxes
175	under chapter 196.
176	4.  For the purposes of this subsection, the term
177	"nonhomestead property" means property that is not homestead
178	property.
179	3.5.  Effective July 1, 2008, a personal lines residential
180	structure that has a dwelling replacement cost of $1 million or
181	more, or a single condominium unit that has a combined dwelling
182	and content replacement cost of $1 million or more is not
183	eligible for coverage by the corporation. Such dwellings insured
184	by the corporation on June 30, 2008, may continue to be covered
185	by the corporation until the end of the policy term. However,
186	such dwellings that are insured by the corporation and become
187	ineligible for coverage due to the provisions of this
188	subparagraph may reapply and obtain coverage in the high-risk
189	account and be considered "nonhomestead property" if the
190	property owner provides the corporation with a sworn affidavit
191	from one or more insurance agents, on a form provided by the
192	corporation, stating that the agents have made their best
193	efforts to obtain coverage and that the property has been
194	rejected for coverage by at least one authorized insurer and at
195	least three surplus lines insurers. If such conditions are met,
196	the dwelling may be insured by the corporation for up to 3
197	years, after which time the dwelling is ineligible for coverage.
198	The office shall approve the method used by the corporation for
199	valuing the dwelling replacement cost for the purposes of this
200	subparagraph. If a policyholder is insured by the corporation
201	prior to being determined to be ineligible pursuant to this
202	subparagraph and such policyholder files a lawsuit challenging
203	the determination, the policyholder may remain insured by the
204	corporation until the conclusion of the litigation.
205	4.6.  For properties constructed on or after January 1,
206	2009, the corporation may not insure any property located within
207	2,500 feet landward of the coastal construction control line
208	created pursuant to s. 161.053 unless the property meets the
209	requirements of the code-plus building standards developed by
210	the Florida Building Commission.
211	5.7.  It is the intent of the Legislature that
212	policyholders, applicants, and agents of the corporation receive
213	service and treatment of the highest possible level but never
214	less than that generally provided in the voluntary market. It
215	also is intended that the corporation be held to service
216	standards no less than those applied to insurers in the
217	voluntary market by the office with respect to responsiveness,
218	timeliness, customer courtesy, and overall dealings with
219	policyholders, applicants, or agents of the corporation.
220	(b)1.  All insurers authorized to write one or more subject
221	lines of business in this state are subject to assessment by the
222	corporation and, for the purposes of this subsection, are
223	referred to collectively as "assessable insurers." Insurers
224	writing one or more subject lines of business in this state
225	pursuant to part VIII of chapter 626 are not assessable
226	insurers, but insureds who procure one or more subject lines of
227	business in this state pursuant to part VIII of chapter 626 are
228	subject to assessment by the corporation and are referred to
229	collectively as "assessable insureds." An authorized insurer's
230	assessment liability shall begin on the first day of the
231	calendar year following the year in which the insurer was issued
232	a certificate of authority to transact insurance for subject
233	lines of business in this state and shall terminate 1 year after
234	the end of the first calendar year during which the insurer no
235	longer holds a certificate of authority to transact insurance
236	for subject lines of business in this state.
237	2.a.  All revenues, assets, liabilities, losses, and
238	expenses of the corporation shall be divided into three separate
239	accounts as follows:
240	(I)  A personal lines account for personal residential
241	policies issued by the corporation or issued by the Residential
242	Property and Casualty Joint Underwriting Association and renewed
243	by the corporation that provide comprehensive, multiperil
244	coverage on risks that are not located in areas eligible for
245	coverage in the Florida Windstorm Underwriting Association as
246	those areas were defined on January 1, 2002, and for such
247	policies that do not provide coverage for the peril of wind on
248	risks that are located in such areas;
249	(II)  A commercial lines account for commercial residential
250	and commercial nonresidential policies issued by the corporation
251	or issued by the Residential Property and Casualty Joint
252	Underwriting Association and renewed by the corporation that
253	provide coverage for basic property perils on risks that are not
254	located in areas eligible for coverage in the Florida Windstorm
255	Underwriting Association as those areas were defined on January
256	1, 2002, and for such policies that do not provide coverage for
257	the peril of wind on risks that are located in such areas; and
258	(III)  A high-risk account for personal residential
259	policies and commercial residential and commercial
260	nonresidential property policies issued by the corporation or
261	transferred to the corporation that provide coverage for the
262	peril of wind on risks that are located in areas eligible for
263	coverage in the Florida Windstorm Underwriting Association as
264	those areas were defined on January 1, 2002. Subject to the
265	approval of a business plan by the Financial Services Commission
266	and Legislative Budget Commission as provided in this sub-sub-
267	subparagraph, but no earlier than March 31, 2007, the
268	corporation may offer policies that provide multiperil coverage
269	and the corporation shall continue to offer policies that
270	provide coverage only for the peril of wind for risks located in
271	areas eligible for coverage in the high-risk account. In issuing
272	multiperil coverage, the corporation may use its approved policy
273	forms and rates for the personal lines account. An applicant or
274	insured who is eligible to purchase a multiperil policy from the
275	corporation may purchase a multiperil policy from an authorized
276	insurer without prejudice to the applicant's or insured's
277	eligibility to prospectively purchase a policy that provides
278	coverage only for the peril of wind from the corporation. An
279	applicant or insured who is eligible for a corporation policy
280	that provides coverage only for the peril of wind may elect to
281	purchase or retain such policy and also purchase or retain
282	coverage excluding wind from an authorized insurer without
283	prejudice to the applicant's or insured's eligibility to
284	prospectively purchase a policy that provides multiperil
285	coverage from the corporation. It is the goal of the Legislature
286	that there would be an overall average savings of 10 percent or
287	more for a policyholder who currently has a wind-only policy
288	with the corporation, and an ex-wind policy with a voluntary
289	insurer or the corporation, and who then obtains a multiperil
290	policy from the corporation. It is the intent of the Legislature
291	that the offer of multiperil coverage in the high-risk account
292	be made and implemented in a manner that does not adversely
293	affect the tax-exempt status of the corporation or
294	creditworthiness of or security for currently outstanding
295	financing obligations or credit facilities of the high-risk
296	account, the personal lines account, or the commercial lines
297	account. By March 1, 2007, the corporation shall prepare and
298	submit for approval by the Financial Services Commission and
299	Legislative Budget Commission a report detailing the
300	corporation's business plan for issuing multiperil coverage in
301	the high-risk account. The business plan shall be approved or
302	disapproved within 30 days after receipt, as submitted or
303	modified and resubmitted by the corporation. The business plan
304	must include: the impact of such multiperil coverage on the
305	corporation's financial resources, the impact of such multiperil
306	coverage on the corporation's tax-exempt status, the manner in
307	which the corporation plans to implement the processing of
308	applications and policy forms for new and existing
309	policyholders, the impact of such multiperil coverage on the
310	corporation's ability to deliver customer service at the high
311	level required by this subsection, the ability of the
312	corporation to process claims, the ability of the corporation to
313	quote and issue policies, the impact of such multiperil coverage
314	on the corporation's agents, the impact of such multiperil
315	coverage on the corporation's existing policyholders, and the
316	impact of such multiperil coverage on rates and premium. The
317	high-risk account must also include quota share primary
318	insurance under subparagraph (c)2. The area eligible for
319	coverage under the high-risk account also includes the area
320	within Port Canaveral, which is bordered on the south by the
321	City of Cape Canaveral, bordered on the west by the Banana
322	River, and bordered on the north by Federal Government property.
323	b.  The three separate accounts must be maintained as long
324	as financing obligations entered into by the Florida Windstorm
325	Underwriting Association or Residential Property and Casualty
326	Joint Underwriting Association are outstanding, in accordance
327	with the terms of the corresponding financing documents. When
328	the financing obligations are no longer outstanding, in
329	accordance with the terms of the corresponding financing
330	documents, the corporation may use a single account for all
331	revenues, assets, liabilities, losses, and expenses of the
332	corporation. Consistent with the requirement of this
333	subparagraph and prudent investment policies that minimize the
334	cost of carrying debt, the board shall exercise its best efforts
335	to retire existing debt or to obtain approval of necessary
336	parties to amend the terms of existing debt, so as to structure
337	the most efficient plan to consolidate the three separate
338	accounts into a single account. By February 1, 2007, the board
339	shall submit a report to the Financial Services Commission, the
340	President of the Senate, and the Speaker of the House of
341	Representatives which includes an analysis of consolidating the
342	accounts, the actions the board has taken to minimize the cost
343	of carrying debt, and its recommendations for executing the most
344	efficient plan.
345	c.  Creditors of the Residential Property and Casualty
346	Joint Underwriting Association shall have a claim against, and
347	recourse to, the accounts referred to in sub-sub-subparagraphs
348	a.(I) and (II) and shall have no claim against, or recourse to,
349	the account referred to in sub-sub-subparagraph a.(III).
350	Creditors of the Florida Windstorm Underwriting Association
351	shall have a claim against, and recourse to, the account
352	referred to in sub-sub-subparagraph a.(III) and shall have no
353	claim against, or recourse to, the accounts referred to in sub-
354	sub-subparagraphs a.(I) and (II).
355	d.  Revenues, assets, liabilities, losses, and expenses not
356	attributable to particular accounts shall be prorated among the
357	accounts.
358	e.  The Legislature finds that the revenues of the
359	corporation are revenues that are necessary to meet the
360	requirements set forth in documents authorizing the issuance of
361	bonds under this subsection.
362	f.  No part of the income of the corporation may inure to
363	the benefit of any private person.
364	3.  With respect to a deficit in an account:
365	a.  When the deficit incurred in a particular calendar year
366	is not greater than 10 percent of the aggregate statewide direct
367	written premium for the subject lines of business for the prior
368	calendar year, the entire deficit shall be recovered through
369	regular assessments of assessable insurers under paragraph (p)
370	and assessable insureds.
371	b.  When the deficit incurred in a particular calendar year
372	exceeds 10 percent of the aggregate statewide direct written
373	premium for the subject lines of business for the prior calendar
374	year, the corporation shall levy regular assessments on
375	assessable insurers under paragraph (p) and on assessable
376	insureds in an amount equal to the greater of 10 percent of the
377	deficit or 10 percent of the aggregate statewide direct written
378	premium for the subject lines of business for the prior calendar
379	year. Any remaining deficit shall be recovered through emergency
380	assessments under sub-subparagraph d.
381	c.  Each assessable insurer's share of the amount being
382	assessed under sub-subparagraph a. or sub-subparagraph b. shall
383	be in the proportion that the assessable insurer's direct
384	written premium for the subject lines of business for the year
385	preceding the assessment bears to the aggregate statewide direct
386	written premium for the subject lines of business for that year.
387	The assessment percentage applicable to each assessable insured
388	is the ratio of the amount being assessed under sub-subparagraph
389	a. or sub-subparagraph b. to the aggregate statewide direct
390	written premium for the subject lines of business for the prior
391	year. Assessments levied by the corporation on assessable
392	insurers under sub-subparagraphs a. and b. shall be paid as
393	required by the corporation's plan of operation and paragraph
394	(p). Notwithstanding any other provision of this subsection, the
395	aggregate amount of a regular assessment for a deficit incurred
396	in a particular calendar year shall be reduced by the estimated
397	amount to be received by the corporation from the Citizens
398	policyholder surcharge under subparagraph (c)11. and the amount
399	collected or estimated to be collected from the assessment on
400	Citizens policyholders pursuant to sub-subparagraph i.
401	Assessments levied by the corporation on assessable insureds
402	under sub-subparagraphs a. and b. shall be collected by the
403	surplus lines agent at the time the surplus lines agent collects
404	the surplus lines tax required by s. 626.932 and shall be paid
405	to the Florida Surplus Lines Service Office at the time the
406	surplus lines agent pays the surplus lines tax to the Florida
407	Surplus Lines Service Office. Upon receipt of regular
408	assessments from surplus lines agents, the Florida Surplus Lines
409	Service Office shall transfer the assessments directly to the
410	corporation as determined by the corporation.
411	d.  Upon a determination by the board of governors that a
412	deficit in an account exceeds the amount that will be recovered
413	through regular assessments under sub-subparagraph a. or sub-
414	subparagraph b., the board shall levy, after verification by the
415	office, emergency assessments, for as many years as necessary to
416	cover the deficits, to be collected by assessable insurers and
417	the corporation and collected from assessable insureds upon
418	issuance or renewal of policies for subject lines of business,
419	excluding National Flood Insurance policies. The amount of the
420	emergency assessment collected in a particular year shall be a
421	uniform percentage of that year's direct written premium for
422	subject lines of business and all accounts of the corporation,
423	excluding National Flood Insurance Program policy premiums, as
424	annually determined by the board and verified by the office. The
425	office shall verify the arithmetic calculations involved in the
426	board's determination within 30 days after receipt of the
427	information on which the determination was based.
428	Notwithstanding any other provision of law, the corporation and
429	each assessable insurer that writes subject lines of business
430	shall collect emergency assessments from its policyholders
431	without such obligation being affected by any credit,
432	limitation, exemption, or deferment. Emergency assessments
433	levied by the corporation on assessable insureds shall be
434	collected by the surplus lines agent at the time the surplus
435	lines agent collects the surplus lines tax required by s.
436	626.932 and shall be paid to the Florida Surplus Lines Service
437	Office at the time the surplus lines agent pays the surplus
438	lines tax to the Florida Surplus Lines Service Office. The
439	emergency assessments so collected shall be transferred directly
440	to the corporation on a periodic basis as determined by the
441	corporation and shall be held by the corporation solely in the
442	applicable account. The aggregate amount of emergency
443	assessments levied for an account under this sub-subparagraph in
444	any calendar year may not exceed the greater of 10 percent of
445	the amount needed to cover the original deficit, plus interest,
446	fees, commissions, required reserves, and other costs associated
447	with financing of the original deficit, or 10 percent of the
448	aggregate statewide direct written premium for subject lines of
449	business and for all accounts of the corporation for the prior
450	year, plus interest, fees, commissions, required reserves, and
451	other costs associated with financing the original deficit.
452	e.  The corporation may pledge the proceeds of assessments,
453	projected recoveries from the Florida Hurricane Catastrophe
454	Fund, other insurance and reinsurance recoverables, policyholder
455	surcharges and other surcharges, and other funds available to
456	the corporation as the source of revenue for and to secure bonds
457	issued under paragraph (p), bonds or other indebtedness issued
458	under subparagraph (c)3., or lines of credit or other financing
459	mechanisms issued or created under this subsection, or to retire
460	any other debt incurred as a result of deficits or events giving
461	rise to deficits, or in any other way that the board determines
462	will efficiently recover such deficits. The purpose of the lines
463	of credit or other financing mechanisms is to provide additional
464	resources to assist the corporation in covering claims and
465	expenses attributable to a catastrophe. As used in this
466	subsection, the term "assessments" includes regular assessments
467	under sub-subparagraph a., sub-subparagraph b., or subparagraph
468	(p)1. and emergency assessments under sub-subparagraph d.
469	Emergency assessments collected under sub-subparagraph d. are
470	not part of an insurer's rates, are not premium, and are not
471	subject to premium tax, fees, or commissions; however, failure
472	to pay the emergency assessment shall be treated as failure to
473	pay premium. The emergency assessments under sub-subparagraph d.
474	shall continue as long as any bonds issued or other indebtedness
475	incurred with respect to a deficit for which the assessment was
476	imposed remain outstanding, unless adequate provision has been
477	made for the payment of such bonds or other indebtedness
478	pursuant to the documents governing such bonds or other
479	indebtedness.
480	f.  As used in this subsection, the term "subject lines of
481	business" means insurance written by assessable insurers or
482	procured by assessable insureds for all property and casualty
483	lines of business in this state, but not including workers'
484	compensation or medical malpractice. As used in the sub-
485	subparagraph, the term "property and casualty lines of business"
486	includes all lines of business identified on Form 2, Exhibit of
487	Premiums and Losses, in the annual statement required of
488	authorized insurers by s. 624.424 and any rule adopted under
489	this section, except for those lines identified as accident and
490	health insurance and except for policies written under the
491	National Flood Insurance Program or the Federal Crop Insurance
492	Program. For purposes of this sub-subparagraph, the term
493	"workers' compensation" includes both workers' compensation
494	insurance and excess workers' compensation insurance.
495	g.  The Florida Surplus Lines Service Office shall
496	determine annually the aggregate statewide written premium in
497	subject lines of business procured by assessable insureds and
498	shall report that information to the corporation in a form and
499	at a time the corporation specifies to ensure that the
500	corporation can meet the requirements of this subsection and the
501	corporation's financing obligations.
502	h.  The Florida Surplus Lines Service Office shall verify
503	the proper application by surplus lines agents of assessment
504	percentages for regular assessments and emergency assessments
505	levied under this subparagraph on assessable insureds and shall
506	assist the corporation in ensuring the accurate, timely
507	collection and payment of assessments by surplus lines agents as
508	required by the corporation.
509	i.  If a deficit is incurred in any account in 2008 or
510	thereafter, the board of governors shall levy an immediate
511	assessment against the premium of each nonhomestead property
512	policyholder in that account all accounts of the corporation, as
513	a uniform percentage of the premium of the policy of up to 10
514	percent of such premium, which funds shall be used to offset the
515	deficit. If this assessment is insufficient to eliminate the
516	deficit, the board of governors shall levy an additional
517	assessment against all remaining policyholders of the
518	corporation, which shall be collected at the time of issuance or
519	renewal of a policy, as a uniform percentage of the premium for
520	the policy of up to 10 percent of such premium, which funds
521	shall be used to further offset the deficit.
522	j.  The board of governors shall maintain separate
523	accounting records that consolidate data for nonhomestead
524	properties, including, but not limited to, number of policies,
525	insured values, premiums written, and losses. The board of
526	governors shall annually report to the office and the
527	Legislature a summary of such data.
528	Section 5.  Section 627.70185, Florida Statutes, is created
529	to read:
530	627.70185  Standards for determining risk of coverage.--In
531	determining the risk of providing property insurance coverage,
532	an insurer may not deny coverage solely on the basis of the age
533	of the property and shall consider the wind resistance of the
534	structure and measures undertaken by the owner to protect the
535	property against hurricane loss.
536	Section 6.  This act shall take effect July 1, 2007.

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