Amendment
Bill No. 2498

Amendment No. 900607

CHAMBER ACTION
Senate		House
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1	Representative(s) Reagan offered the following:
2
3	Amendment (with title amendment)
4	Remove everything after the enacting clause and insert:
5	Section 1.  Paragraph (h) of subsection (7) of section
6	163.01, Florida Statutes, as amended by chapter 2007-1, Laws of
7	Florida, is amended to read:
8	163.01  Florida Interlocal Cooperation Act of 1969.--
9	(7)
10	(h)1.  Notwithstanding the provisions of paragraph (c), any
11	separate legal entity consisting of an alliance, as defined in
12	s. 395.106(2)(a), created pursuant to this paragraph and
13	controlled by and whose members consist of eligible entities
14	comprised of special districts created pursuant to a special act
15	and having the authority to own or operate one or more hospitals
16	licensed in this state or hospitals licensed in this state that
17	are owned, operated, or funded by a county or municipality, for
18	the purpose of providing property insurance coverage as defined
19	in s. 395.106(2)(b)(c), for such eligible entities, may exercise
20	all powers under this subsection in connection with borrowing
21	funds for such purposes, including, without limitation, the
22	authorization, issuance, and sale of bonds, notes, or other
23	obligations of indebtedness. Borrowed funds, including, but not
24	limited to, bonds issued by such alliance shall be deemed issued
25	on behalf of such eligible entities that enter into loan
26	agreements with such separate legal entity as provided in this
27	paragraph.
28	2.  Any such separate legal entity shall have all the
29	powers that are provided by the interlocal agreement under which
30	the entity is created or that are necessary to finance, operate,
31	or manage the alliance's property insurance coverage program.
32	Proceeds of bonds, notes, or other obligations issued by such an
33	entity may be loaned to any one or more eligible entities. Such
34	eligible entities are authorized to enter into loan agreements
35	with any separate legal entity created pursuant to this
36	paragraph for the purpose of obtaining moneys with which to
37	finance property insurance coverage or claims. Obligations of
38	any eligible entity pursuant to a loan agreement as described in
39	this paragraph may be validated as provided in chapter 75.
40	3.  Any bonds, notes, or other obligations to be issued or
41	incurred by a separate legal entity created pursuant to this
42	paragraph shall be authorized by resolution of the governing
43	body of such entity and bear the date or dates; mature at the
44	time or times, not exceeding 30 years from their respective
45	dates; bear interest at the rate or rates, which may be fixed or
46	vary at such time or times and in accordance with a specified
47	formula or method of determination; be payable at the time or
48	times; be in the denomination; be in the form; carry the
49	registration privileges; be executed in the manner; be payable
50	from the sources and in the medium of payment and at the place;
51	and be subject to redemption, including redemption prior to
52	maturity, as the resolution may provide. The bonds, notes, or
53	other obligations may be sold at public or private sale for such
54	price as the governing body of the separate legal entity shall
55	determine. The bonds may be secured by such credit enhancement,
56	if any, as the governing body of the separate legal entity deems
57	appropriate. The bonds may be secured by an indenture of trust
58	or trust agreement. In addition, the governing body of the
59	separate legal entity may delegate, to such officer or official
60	of such entity as the governing body may select, the power to
61	determine the time; manner of sale, public or private;
62	maturities; rate or rates of interest, which may be fixed or may
63	vary at such time or times and in accordance with a specified
64	formula or method of determination; and other terms and
65	conditions as may be deemed appropriate by the officer or
66	official so designated by the governing body of such separate
67	legal entity. However, the amounts and maturities of such bonds,
68	the interest rate or rates, and the purchase price of such bonds
69	shall be within the limits prescribed by the governing body of
70	such separate legal entity in its resolution delegating to such
71	officer or official the power to authorize the issuance and sale
72	of such bonds.
73	4.  Bonds issued pursuant to this paragraph may be
74	validated as provided in chapter 75. The complaint in any action
75	to validate such bonds shall be filed only in the Circuit Court
76	for Leon County. The notice required to be published by s. 75.06
77	shall be published in Leon County and in each county in which an
78	eligible entity that is a member of an alliance is located. The
79	complaint and order of the circuit court shall be served only on
80	the State Attorney of the Second Judicial Circuit and on the
81	state attorney of each circuit in each county in which an
82	eligible entity receiving bond proceeds is located.
83	5.  The accomplishment of the authorized purposes of a
84	separate legal entity created under this paragraph is deemed in
85	all respects for the benefit, increase of the commerce and
86	prosperity, and improvement of the health and living conditions
87	of the people of this state. Inasmuch as the separate legal
88	entity performs essential public functions in accomplishing its
89	purposes, the separate legal entity is not required to pay any
90	taxes or assessments of any kind upon any property acquired or
91	used by the entity for such purposes or upon any revenues at any
92	time received by the entity. The bonds, notes, and other
93	obligations of such separate legal entity, the transfer of and
94	income from such bonds, notes, and other obligations, including
95	any profits made on the sale of such bonds, notes, and other
96	obligations, are at all times free from taxation of any kind of
97	the state or by any political subdivision or other agency or
98	instrumentality of the state. The exemption granted in this
99	paragraph does not apply to any tax imposed by chapter 220 on
100	interest, income, or profits on debt obligations owned by
101	corporations.
102	6.  The participation by any eligible entity in an alliance
103	or a separate legal entity created pursuant to this paragraph
104	may not be deemed a waiver of immunity to the extent of
105	liability or any other coverage, and a contract entered
106	regarding such alliance is not required to contain any provision
107	for waiver.
108	Section 2.  Paragraph (b) of subsection (4), paragraph (e)
109	of subsection (5), paragraph (b) of subsection (6), and
110	subsection (16) of section 215.555, Florida Statutes, as amended
111	by chapter 2007-1, Laws of Florida, are amended to read:
112	215.555  Florida Hurricane Catastrophe Fund.--
113	(4)  REIMBURSEMENT CONTRACTS.--
114	(b)1.  The contract shall contain a promise by the board to
115	reimburse the insurer for 45 percent, 75 percent, or 90 percent
116	of its losses from each covered event in excess of the insurer's
117	retention, plus 5 percent of the reimbursed losses to cover loss
118	adjustment expenses.
119	2.  The insurer must elect one of the percentage coverage
120	levels specified in this paragraph and may, upon renewal of a
121	reimbursement contract, elect a lower percentage coverage level
122	if no revenue bonds issued under subsection (6) after a covered
123	event are outstanding, or elect a higher percentage coverage
124	level, regardless of whether or not revenue bonds are
125	outstanding. All members of an insurer group must elect the same
126	percentage coverage level. Any joint underwriting association,
127	risk apportionment plan, or other entity created under s.
128	627.351 must elect the 90-percent coverage level.
129	3.  The contract shall provide that reimbursement amounts
130	shall not be reduced by reinsurance paid or payable to the
131	insurer from other sources.
132	4.  Notwithstanding any other provision contained in this
133	section, the board shall make available to insurers that
134	purchased coverage provided by this subparagraph participated in
135	2006, insurers qualifying as limited apportionment companies
136	under s. 627.351(6)(c) which began writing property insurance in
137	2007, and insurers that were approved to participate in 2006 or
138	that are approved in 2007 for the Insurance Capital Build-Up
139	Incentive Program pursuant to s. 215.5595, a contract or
140	contract addendum that provides an additional amount of
141	reimbursement coverage of up to $10 million. The premium to be
142	charged for this additional reimbursement coverage shall be 50
143	percent of the additional reimbursement coverage provided, which
144	shall include one prepaid reinstatement. The minimum retention
145	level that an eligible participating insurer must retain
146	associated with this additional coverage layer is 30 percent of
147	the insurer's surplus as of December 31, 2006. This coverage
148	shall be in addition to all other coverage that may be provided
149	under this section. The coverage provided by the fund under this
150	subparagraph subsection shall be in addition to the claims-
151	paying capacity as defined in subparagraph (c)1., but only with
152	respect to those insurers that select the additional coverage
153	option and meet the requirements of this subparagraph
154	subsection. The claims-paying capacity with respect to all other
155	participating insurers and limited apportionment companies that
156	do not select the additional coverage option shall be limited to
157	their reimbursement premium's proportionate share of the actual
158	claims-paying capacity otherwise defined in subparagraph (c)1.
159	and as provided for under the terms of the reimbursement
160	contract. Coverage provided in the reimbursement contract will
161	not be affected by the additional premiums paid by participating
162	insurers exercising the additional coverage option allowed in
163	this subparagraph. This subparagraph expires on May 31, 2008.
164	(5)  REIMBURSEMENT PREMIUMS.--
165	(e)  If Citizens Property Insurance Corporation assumes or
166	otherwise provides coverage for policies of an insurer placed in
167	liquidation under chapter 631 pursuant to s. 627.351(6), the
168	corporation may, pursuant to conditions mutually agreed to
169	between the corporation and the State Board of Administration,
170	obtain coverage for such policies under its contract with the
171	fund or accept an assignment of the liquidated insurer's
172	contract with the fund. If Citizens Property Insurance
173	Corporation elects to cover these policies under the
174	corporation's contract with the fund, it shall notify the board
175	of its insured values with respect to such policies within a
176	specified time mutually agreed to between the corporation and
177	the board, after such assumption or other coverage transaction,
178	and the fund shall treat such policies as having been in effect
179	as of June 30 of that year. In the event of an assignment, the
180	fund shall apply that contract to such policies and treat
181	Citizens Property Insurance Corporation as if the corporation
182	were the liquidated insurer for the remaining term of the
183	contract, and the corporation shall have all rights and duties
184	of the liquidated insurer beginning on the date it provides
185	coverage for such policies, but the corporation is not subject
186	to any preexisting rights, liabilities, or duties of the
187	liquidated insurer. The assignment, including any unresolved
188	issues between the liquidated insurer and Citizens Property
189	Insurance Corporation under the contract, shall be provided for
190	in the liquidation order or otherwise determined by the court.
191	However, if a covered event occurs before the effective date of
192	the assignment, the corporation may not obtain coverage for such
193	policies under its contract with the fund and shall accept an
194	assignment of the liquidated insurer's contract as provided in
195	this paragraph. This paragraph expires on June 1, 2007.
196	(6)  REVENUE BONDS.--
197	(b)  Emergency assessments.--
198	1.  If the board determines that the amount of revenue
199	produced under subsection (5) is insufficient to fund the
200	obligations, costs, and expenses of the fund and the
201	corporation, including repayment of revenue bonds and that
202	portion of the debt service coverage not met by reimbursement
203	premiums, the board shall direct the Office of Insurance
204	Regulation to levy, by order, an emergency assessment on direct
205	premiums for all property and casualty lines of business in this
206	state, including property and casualty business of surplus lines
207	insurers regulated under part VIII of chapter 626, but not
208	including any workers' compensation premiums or medical
209	malpractice premiums. As used in this subsection, the term
210	"property and casualty business" includes all lines of business
211	identified on Form 2, Exhibit of Premiums and Losses, in the
212	annual statement required of authorized insurers by s. 624.424
213	and any rule adopted under this section, except for those lines
214	identified as accident and health insurance and except for
215	policies written under the National Flood Insurance Program. The
216	assessment shall be specified as a percentage of direct written
217	premium and is subject to annual adjustments by the board in
218	order to meet debt obligations. The same percentage shall apply
219	to all policies in lines of business subject to the assessment
220	issued or renewed during the 12-month period beginning on the
221	effective date of the assessment.
222	2.  A premium is not subject to an annual assessment under
223	this paragraph in excess of 6 percent of premium with respect to
224	obligations arising out of losses attributable to any one
225	contract year, and a premium is not subject to an aggregate
226	annual assessment under this paragraph in excess of 10 percent
227	of premium. An annual assessment under this paragraph shall
228	continue as long as the revenue bonds issued with respect to
229	which the assessment was imposed are outstanding, including any
230	bonds the proceeds of which were used to refund the revenue
231	bonds, unless adequate provision has been made for the payment
232	of the bonds under the documents authorizing issuance of the
233	bonds.
234	3.  Emergency assessments shall be collected from
235	policyholders. Emergency assessments shall be remitted by
236	insurers as a percentage of direct written premium for the
237	preceding calendar quarter as specified in the order from the
238	Office of Insurance Regulation. The office shall verify the
239	accurate and timely collection and remittance of emergency
240	assessments and shall report the information to the board in a
241	form and at a time specified by the board. Each insurer
242	collecting assessments shall provide the information with
243	respect to premiums and collections as may be required by the
244	office to enable the office to monitor and verify compliance
245	with this paragraph.
246	4.  With respect to assessments of surplus lines premiums,
247	each surplus lines agent shall collect the assessment at the
248	same time as the agent collects the surplus lines tax required
249	by s. 626.932, and the surplus lines agent shall remit the
250	assessment to the Florida Surplus Lines Service Office created
251	by s. 626.921 at the same time as the agent remits the surplus
252	lines tax to the Florida Surplus Lines Service Office. The
253	emergency assessment on each insured procuring coverage and
254	filing under s. 626.938 shall be remitted by the insured to the
255	Florida Surplus Lines Service Office at the time the insured
256	pays the surplus lines tax to the Florida Surplus Lines Service
257	Office. The Florida Surplus Lines Service Office shall remit the
258	collected assessments to the fund or corporation as provided in
259	the order levied by the Office of Insurance Regulation. The
260	Florida Surplus Lines Service Office shall verify the proper
261	application of such emergency assessments and shall assist the
262	board in ensuring the accurate and timely collection and
263	remittance of assessments as required by the board. The Florida
264	Surplus Lines Service Office shall annually calculate the
265	aggregate written premium on property and casualty business,
266	other than workers' compensation and medical malpractice,
267	procured through surplus lines agents and insureds procuring
268	coverage and filing under s. 626.938 and shall report the
269	information to the board in a form and at a time specified by
270	the board.
271	5.  Any assessment authority not used for a particular
272	contract year may be used for a subsequent contract year. If,
273	for a subsequent contract year, the board determines that the
274	amount of revenue produced under subsection (5) is insufficient
275	to fund the obligations, costs, and expenses of the fund and the
276	corporation, including repayment of revenue bonds and that
277	portion of the debt service coverage not met by reimbursement
278	premiums, the board shall direct the Office of Insurance
279	Regulation to levy an emergency assessment up to an amount not
280	exceeding the amount of unused assessment authority from a
281	previous contract year or years, plus an additional 4 percent
282	provided that the assessments in the aggregate do not exceed the
283	limits specified in subparagraph 2.
284	6.  The assessments otherwise payable to the corporation
285	under this paragraph shall be paid to the fund unless and until
286	the Office of Insurance Regulation and the Florida Surplus Lines
287	Service Office have received from the corporation and the fund a
288	notice, which shall be conclusive and upon which they may rely
289	without further inquiry, that the corporation has issued bonds
290	and the fund has no agreements in effect with local governments
291	under paragraph (c). On or after the date of the notice and
292	until the date the corporation has no bonds outstanding, the
293	fund shall have no right, title, or interest in or to the
294	assessments, except as provided in the fund's agreement with the
295	corporation.
296	7.  Emergency assessments are not premium and are not
297	subject to the premium tax, to the surplus lines tax, to any
298	fees, or to any commissions. An insurer is liable for all
299	assessments that it collects and must treat the failure of an
300	insured to pay an assessment as a failure to pay the premium. An
301	insurer is not liable for uncollectible assessments.
302	8.  When an insurer is required to return an unearned
303	premium, it shall also return any collected assessment
304	attributable to the unearned premium. A credit adjustment to the
305	collected assessment may be made by the insurer with regard to
306	future remittances that are payable to the fund or corporation,
307	but the insurer is not entitled to a refund.
308	9.  When a surplus lines insured or an insured who has
309	procured coverage and filed under s. 626.938 is entitled to the
310	return of an unearned premium, the Florida Surplus Lines Service
311	Office shall provide a credit or refund to the agent or such
312	insured for the collected assessment attributable to the
313	unearned premium prior to remitting the emergency assessment
314	collected to the fund or corporation.
315	10.  The exemption of medical malpractice insurance
316	premiums from emergency assessments under this paragraph is
317	repealed May 31, 2010 May 31, 2007, and medical malpractice
318	insurance premiums shall be subject to emergency assessments
319	attributable to loss events occurring in the contract years
320	commencing on June 1, 2010 June 1, 2007.
321	(16)  TEMPORARY EMERGENCY OPTIONS FOR ADDITIONAL
322	COVERAGE.--
323	(a)  Findings and intent.--
324	1.  The Legislature finds that:
325	a.  Because of temporary disruptions in the market for
326	catastrophic reinsurance, many property insurers were unable to
327	procure reinsurance for the 2006 hurricane season with an
328	attachment point below the insurers' respective Florida
329	Hurricane Catastrophe Fund attachment points, were unable to
330	procure sufficient amounts of such reinsurance, or were able to
331	procure such reinsurance only by incurring substantially higher
332	costs than in prior years.
333	b.  The reinsurance market problems were responsible, at
334	least in part, for substantial premium increases to many
335	consumers and increases in the number of policies issued by the
336	Citizens Property Insurance Corporation.
337	c.  It is likely that the reinsurance market disruptions
338	will not significantly abate prior to the 2007 hurricane season.
339	2.  It is the intent of the Legislature to create a
340	temporary emergency program, applicable to the 2007, 2008, and
341	2009 hurricane seasons, to address these market disruptions and
342	enable insurers, at their option, to procure additional coverage
343	from the Florida Hurricane Catastrophe Fund.
344	(b)  Applicability of other provisions of this
345	section.--All provisions of this section and the rules adopted
346	under this section apply to the program created by this
347	subsection unless specifically superseded by this subsection.
348	(c)  Optional coverage.--For the contract year commencing
349	June 1, 2007, and ending May 31, 2008, the contract year
350	commencing June 1, 2008, and ending May 31, 2009, and the
351	contract year commencing June 1, 2009, and ending May 31, 2010,
352	the board shall offer for each of such years the optional
353	coverage as provided in this subsection.
354	(d)  Additional definitions.--As used in this subsection,
355	the term:
356	1.  "TEACO options" means the temporary emergency
357	additional coverage options created under this subsection.
358	2.  "TEACO insurer" means an insurer that has opted to
359	obtain coverage under the TEACO options in addition to the
360	coverage provided to the insurer under its reimbursement
361	contract.
362	3.  "TEACO reimbursement premium" means the premium charged
363	by the fund for coverage provided under the TEACO options.
364	4.  "TEACO retention" means the amount of losses below
365	which a TEACO insurer is not entitled to reimbursement from the
366	fund under the TEACO option selected. A TEACO insurer's
367	retention options shall be calculated as follows:
368	a.  The board shall calculate and report to each TEACO
369	insurer the TEACO retention multiples. There shall be three
370	TEACO retention multiples for defining coverage. Each multiple
371	shall be calculated by dividing $3 billion, $4 billion, or $5
372	billion by the total estimated mandatory FHCF TEACO
373	reimbursement premium assuming all insurers selected that
374	option. Total estimated TEACO reimbursement premium for purposes
375	of the calculation under this sub-subparagraph shall be
376	calculated using the assumption that all insurers have selected
377	a specific TEACO retention multiple option and have selected the
378	90-percent coverage level.
379	b.  The TEACO retention multiples as determined under sub-
380	subparagraph a. shall be adjusted to reflect the coverage level
381	elected by the insurer. For insurers electing the 90-percent
382	coverage level, the adjusted retention multiple is 100 percent
383	of the amount determined under sub-subparagraph a. For insurers
384	electing the 75-percent coverage level, the retention multiple
385	is 120 percent of the amount determined under sub-subparagraph
386	a. For insurers electing the 45-percent coverage level, the
387	adjusted retention multiple is 200 percent of the amount
388	determined under sub-subparagraph a.
389	c.  An insurer shall determine its provisional TEACO
390	retention by multiplying its estimated mandatory FHCF
391	provisional TEACO reimbursement premium by the applicable
392	adjusted TEACO retention multiple and shall determine its actual
393	TEACO retention by multiplying its actual mandatory FHCF TEACO
394	reimbursement premium by the applicable adjusted TEACO retention
395	multiple.
396	d.  For TEACO insurers who experience multiple covered
397	events causing loss during the contract year, the insurer's full
398	TEACO retention shall be applied to each of the covered events
399	causing the two largest losses for that insurer. For other
400	covered events resulting in losses, the TEACO option does not
401	apply and the insurer's retention shall be one-third of the full
402	retention as calculated under paragraph (2)(e).
403	5.  "TEACO addendum" means an addendum to the reimbursement
404	contract reflecting the obligations of the fund and TEACO
405	insurers under the program created by this subsection.
406	6.  "FHCF" means the Florida Hurricane Catastrophe Fund.
407	(e)  TEACO addendum.--
408	1.  The TEACO addendum shall provide for reimbursement of
409	TEACO insurers for covered events occurring during the contract
410	year, in exchange for the TEACO reimbursement premium paid into
411	the fund under paragraph (f). Any insurer writing covered
412	policies has the option of choosing to accept the TEACO addendum
413	for any of the 3 contract years that the coverage is offered.
414	2.  The TEACO addendum shall contain a promise by the board
415	to reimburse the TEACO insurer for 45 percent, 75 percent, or 90
416	percent of its losses from each covered event in excess of the
417	insurer's TEACO retention, plus 5 percent of the reimbursed
418	losses to cover loss adjustment expenses. The percentage shall
419	be the same as the coverage level selected by the insurer under
420	paragraph (4)(b).
421	3.  The TEACO addendum shall provide that reimbursement
422	amounts shall not be reduced by reinsurance paid or payable to
423	the insurer from other sources.
424	4.  The TEACO addendum shall also provide that the
425	obligation of the board with respect to all TEACO addenda shall
426	not exceed an amount equal to two times the difference between
427	the industry retention level calculated under paragraph (2)(e)
428	and the $3 billion, $4 billion, or $5 billion industry TEACO
429	retention level options actually selected, but in no event may
430	the board's obligation exceed the actual claims-paying capacity
431	of the fund plus the additional capacity created in paragraph
432	(g). If the actual claims-paying capacity and the additional
433	capacity created under paragraph (g) fall short of the board's
434	obligations under the reimbursement contract, each insurer's
435	share of the fund's capacity shall be prorated based on the
436	premium an insurer pays for its mandatory normal reimbursement
437	coverage and the premium paid for its optional TEACO coverage as
438	each such premium bears to the total premiums paid to the fund
439	times the available capacity.
440	5.  The priorities, schedule, and method of reimbursements
441	under the TEACO addendum shall be the same as provided under
442	subsection (4).
443	6.  A TEACO insurer's maximum reimbursement for a single
444	event shall be equal to the product of multiplying its mandatory
445	FHCF premium by the difference between its FHCF retention
446	multiple and its TEACO retention multiple under the TEACO option
447	selected and by the coverage selected under paragraph (4)(b),
448	plus an additional 5 percent for loss adjustment expenses. A
449	TEACO insurer's maximum reimbursement under the TEACO option
450	selected for a TEACO insurer's two largest events addendum shall
451	be twice its maximum reimbursement for a single event calculated
452	by multiplying the insurer's share of the estimated total TEACO
453	reimbursement premium as calculated under sub-subparagraph
454	(d)4.a. by an amount equal to two times the difference between
455	the industry retention level calculated under paragraph (2)(e)
456	and the $3 billion, $4 billion, or $5 billion industry TEACO
457	retention level specified in sub-subparagraph (d)4.a. as
458	selected by the TEACO insurer.
459	(f)  TEACO reimbursement premiums.--
460	1.  Each TEACO insurer shall pay to the fund, in the manner
461	and at the time provided in the reimbursement contract for
462	payment of reimbursement premiums, a TEACO reimbursement premium
463	calculated as specified in this paragraph.
464	2.  The TEACO reimbursement premiums shall be calculated
465	based on the assumption that, if all insurers entering into
466	reimbursement contracts under subsection (4) also accepted the
467	TEACO option:
468	a.  The insurer's industry TEACO reimbursement premium
469	associated with the $3 billion retention option shall would be
470	equal to 85 percent of a TEACO insurer's maximum reimbursement
471	for a single event as calculated under subparagraph (e)6. the
472	difference between the industry retention level calculated under
473	paragraph (2)(e) and the $3 billion industry TEACO retention
474	level.
475	b.  The TEACO reimbursement premium associated with the $4
476	billion retention option shall would be equal to 80 percent of a
477	TEACO insurer's maximum reimbursement for a single event as
478	calculated under subparagraph (e)6. the difference between the
479	industry retention level calculated under paragraph (2)(e) and
480	the $4 billion industry TEACO retention level.
481	c.  The TEACO premium associated with the $5 billion
482	retention option shall would be equal to 75 percent of a TEACO
483	insurer's maximum reimbursement for a single event as calculated
484	under subparagraph (e)6. the difference between the industry
485	retention level calculated under paragraph (2)(e) and the $5
486	billion industry TEACO retention level.
487	3.  Each insurer's TEACO premium shall be calculated based
488	on its share of the total TEACO reimbursement premiums based on
489	its coverage selection under the TEACO addendum.
490	(g)  Effect on claims-paying capacity of the fund.--For the
491	contract term commencing June 1, 2007, the contract year
492	commencing June 1, 2008, and the contract term beginning June 1,
493	2009, the program created by this subsection shall increase the
494	claims-paying capacity of the fund as provided in subparagraph
495	(4)(c)1. by an amount equal to two times the difference between
496	the industry retention level calculated under paragraph (2)(e)
497	and the $3 billion industry TEACO retention level specified in
498	sub-subparagraph (d)4.a. The additional capacity shall apply
499	only to the additional coverage provided by the TEACO option and
500	shall not otherwise affect any insurer's reimbursement from the
501	fund.
502	Section 3.  Paragraphs (b) and (g) of subsection (2) of
503	section 215.5595, Florida Statutes, as amended by chapter 2007-
504	1, Laws of Florida, are amended, and paragraph (j) is added to
505	that subsection, to read:
506	215.5595  Insurance Capital Build-Up Incentive Program.--
507	(2)  The purpose of this section is to provide surplus
508	notes to new or existing authorized residential property
509	insurers under the Insurance Capital Build-Up Incentive Program
510	administered by the State Board of Administration, under the
511	following conditions:
512	(b)  The insurer must contribute an amount of new capital
513	to its surplus which is at least equal to the amount of the
514	surplus note and must apply to the board by July 1, 2006. If an
515	insurer applies after July 1, 2006, but before June 1, 2007, the
516	amount of the surplus note is limited to one-half of the new
517	capital that the insurer contributes to its surplus, except that
518	an insurer writing only manufactured housing policies is
519	eligible to receive a surplus note in the amount of $7 million.
520	For purposes of this section, new capital must be in the form of
521	cash or cash equivalents as specified in s. 625.012(1).
522	(g)  The total amount of funds available for the program is
523	limited to the amount appropriated by the Legislature for this
524	purpose. If the amount of surplus notes requested by insurers
525	exceeds the amount of funds available, the board may prioritize
526	insurers that are eligible and approved, with priority for
527	funding given to insurers writing only manufactured housing
528	policies, regardless of the date of application, based on the
529	financial strength of the insurer, the viability of its proposed
530	business plan for writing additional residential property
531	insurance in the state, and the effect on competition in the
532	residential property insurance market. Between insurers writing
533	residential property insurance covering manufactured housing,
534	priority shall be given to the insurer writing the highest
535	percentage of its policies covering manufactured housing.
536	(j)  As used in this section, "an insurer writing only
537	manufactured housing policies" includes:
538	1.  A Florida domiciled insurer that begins writing
539	personal lines residential manufactured housing policies in
540	Florida after March 1, 2007, and that removes a minimum of
541	50,000 policies from Citizens Property Insurance Corporation
542	without accepting a bonus, provided at least 25 percent of its
543	policies cover manufactured housing. Such an insurer may count
544	any funds above the minimum capital and surplus requirement that
545	were contributed into the insurer after March 1, 2007, as new
546	capital under this section.
547	2.  A Florida domiciled insurer that writes at least 40
548	percent of its policies covering manufactured housing in
549	Florida.
550	Section 4.  Subsection (1) of section 624.407, Florida
551	Statutes, as amended by chapter 2007-1, Laws of Florida, is
552	amended to read:
553	624.407  Capital funds required; new insurers.--
554	(1)  To receive authority to transact any one kind or
555	combinations of kinds of insurance, as defined in part V of this
556	chapter, an insurer applying for its original certificate of
557	authority in this state after the effective date of this section
558	shall possess surplus as to policyholders not less than the
559	greater of:
560	(a)  Five million dollars for a property and casualty
561	insurer, or $2.5 million for any other insurer;
562	(b)  For life insurers, 4 percent of the insurer's total
563	liabilities;
564	(c)  For life and health insurers, 4 percent of the
565	insurer's total liabilities, plus 6 percent of the insurer's
566	liabilities relative to health insurance; or
567	(d)  For all insurers other than life insurers and life and
568	health insurers, 10 percent of the insurer's total liabilities;
569
570	however, a domestic insurer that transacts residential property
571	insurance and is a wholly owned subsidiary of an insurer
572	domiciled authorized to do business in any other state shall
573	possess surplus as to policyholders of at least $50 million, but
574	no insurer shall be required under this subsection to have
575	surplus as to policyholders greater than $100 million.
576	Section 5.  Section 624.46226, Florida Statutes, is created
577	to read:
578	624.46226  Public housing authorities self-insurance
579	funds.--Any two or more public housing authorities in the state
580	as defined in chapter 421 may also create a self-insurance fund
581	as defined in s. 624.4622 for the purpose of self-insuring real
582	or personal property of every kind and every interest in such
583	property against loss or damage from any hazard or cause and
584	against any loss consequential to such loss or damage, provided
585	all the provisions of s. 624.4622 are met.
586	Section 6.  Subsection (4) of section 626.914, Florida
587	Statutes, is amended to read:
588	626.914  Definitions.--As used in this Surplus Lines Law,
589	the term:
590	(4)  "Diligent effort" means seeking coverage from and
591	having been rejected by at least three authorized insurers
592	currently writing this type of coverage and documenting these
593	rejections. However, if the residential structure has a dwelling
594	replacement cost of $1 million or more, the term means seeking
595	coverage from and having been rejected by at least one
596	authorized insurer currently writing this type of coverage and
597	documenting this rejection.
598	Section 7.  Paragraph (e) is added to subsection (1) of
599	section 626.916, Florida Statutes, to read:
600	626.916  Eligibility for export.--
601	(1)  No insurance coverage shall be eligible for export
602	unless it meets all of the following conditions:
603	(e)  For personal residential property risks, the retail or
604	producing agent must advise the insured in writing that coverage
605	may be available and may be less expensive from Citizens
606	Property Insurance Corporation. The notice must include other
607	information that states that assessments by Citizens Property
608	Insurance Corporation are higher and the coverage provided by
609	Citizens Property Insurance Corporation may be less than the
610	property's existing coverage. If the notice is signed by the
611	insured, it is presumed that the insured has been informed and
612	knows that policies from Citizens Property Insurance Corporation
613	may be less expensive, may provide less coverage, and will be
614	accompanied by higher assessments.
615	Section 8.  Subsection (2) of section 626.9201, Florida
616	Statutes, is amended to read:
617	626.9201  Notice of cancellation or nonrenewal.--
618	(2)  An insurer issuing a policy providing coverage for
619	property, casualty, surety, or marine insurance shall give the
620	named insured written notice of cancellation or termination
621	other than nonrenewal at least 45 days prior to the effective
622	date of the cancellation or termination, including in the
623	written notice the reason or reasons for the cancellation or
624	termination, except that:
625	(a)  When cancellation is for nonpayment of premium, at
626	least 10 days' written notice of cancellation accompanied by the
627	reason therefor shall be given. As used in this paragraph, the
628	term "nonpayment of premium" means the failure of the named
629	insured to discharge when due any of his or her obligations in
630	connection with the payment of premiums on a policy or an
631	installment of such a premium, whether the premium or
632	installment is payable directly to the insurer or its agent or
633	indirectly under any plan for financing premiums or extension of
634	credit or the failure of the named insured to maintain
635	membership in an organization if such membership is a condition
636	precedent to insurance coverage. The term also includes the
637	failure of a financial institution to honor the check of an
638	applicant for insurance which was delivered to a licensed agent
639	for payment of a premium, even if the agent previously delivered
640	or transferred the premium to the insurer. If a correctly
641	dishonored check represents payment of the initial premium, the
642	contract, and all contractual obligations are void ab initio
643	unless the nonpayment is cured within the earlier of 5 days
644	after actual notice by certified mail is received by the
645	applicant or 15 days after notice is sent to the applicant by
646	certified mail or registered mail, and, if the contract is void,
647	any premium received by the insurer from a third party shall be
648	refunded to that party in full; and
649	(b)  When such cancellation or termination occurs during
650	the first 90 days during which the insurance is in force and the
651	insurance is canceled or terminated for reasons other than
652	nonpayment, at least 20 days' written notice of cancellation or
653	termination accompanied by the reason therefor shall be given
654	except where there has been a material misstatement or
655	misrepresentation or failure to comply with the underwriting
656	requirements established by the insurer.
657	Section 9.  Subsection (4) of section 627.0613, Florida
658	Statutes, as amended by chapter 2007-1, Laws of Florida, is
659	amended to read:
660	627.0613  Consumer advocate.--The Chief Financial Officer
661	must appoint a consumer advocate who must represent the general
662	public of the state before the department and the office. The
663	consumer advocate must report directly to the Chief Financial
664	Officer, but is not otherwise under the authority of the
665	department or of any employee of the department. The consumer
666	advocate has such powers as are necessary to carry out the
667	duties of the office of consumer advocate, including, but not
668	limited to, the powers to:
669	(4)  Prepare an annual report card for each authorized
670	personal residential property insurer, on a form and using a
671	letter-grade scale developed by the commission by rule, which
672	grades each insurer based on the following factors:
673	(a)  The number and nature of consumer complaints, as a
674	market share ratio, received by the department against the
675	insurer.
676	(b)  The disposition of all complaints received by the
677	department.
678	(c)  The average length of time for payment of claims by
679	the insurer.
680	(d)  Any other factors the commission identifies as
681	assisting policyholders in making informed choices about
682	homeowner's insurance.
683	Section 10.  Paragraph (a) of subsection (2) of section
684	627.062, Florida Statutes, as amended by chapter 2007-1, Laws of
685	Florida, is amended, and subsection (11) is added to that
686	section, to read:
687	627.062  Rate standards.--
688	(2)  As to all such classes of insurance:
689	(a)  Insurers or rating organizations shall establish and
690	use rates, rating schedules, or rating manuals to allow the
691	insurer a reasonable rate of return on such classes of insurance
692	written in this state. A copy of rates, rating schedules, rating
693	manuals, premium credits or discount schedules, and surcharge
694	schedules, and changes thereto, shall be filed with the office
695	under one of the following procedures except as provided in
696	subparagraph 3.:
697	1.  If the filing is made at least 90 days before the
698	proposed effective date and the filing is not implemented during
699	the office's review of the filing and any proceeding and
700	judicial review, then such filing shall be considered a "file
701	and use" filing. In such case, the office shall finalize its
702	review by issuance of a notice of intent to approve or a notice
703	of intent to disapprove within 90 days after receipt of the
704	filing. The notice of intent to approve and the notice of intent
705	to disapprove constitute agency action for purposes of the
706	Administrative Procedure Act. Requests for supporting
707	information, requests for mathematical or mechanical
708	corrections, or notification to the insurer by the office of its
709	preliminary findings shall not toll the 90-day period during any
710	such proceedings and subsequent judicial review. The rate shall
711	be deemed approved if the office does not issue a notice of
712	intent to approve or a notice of intent to disapprove within 90
713	days after receipt of the filing.
714	2.  If the filing is not made in accordance with the
715	provisions of subparagraph 1., such filing shall be made as soon
716	as practicable, but no later than 30 days after the effective
717	date, and shall be considered a "use and file" filing. An
718	insurer making a "use and file" filing is potentially subject to
719	an order by the office to return to policyholders portions of
720	rates found to be excessive, as provided in paragraph (h).
721	3.  For all filings made or submitted after January 25,
722	2007, but on or before December 31, 2008, an insurer seeking a
723	rate that is greater than the rate most recently approved by the
724	office shall make a "file and use" filing. This subparagraph
725	applies to property insurance only. For purposes of this
726	subparagraph, motor vehicle collision and comprehensive
727	coverages are not considered to be property coverages.
728
729	The provisions of this subsection shall not apply to workers'
730	compensation and employer's liability insurance and to motor
731	vehicle insurance.
732	(11)  Any interest paid pursuant to s. 627.70131(5) may not
733	be included in the insurer's rate base and may not be used to
734	justify a rate or rate change.
735	Section 11.  Section 627.0655, Florida Statutes, as created
736	by chapter 2007-1, Laws of Florida, is amended to read:
737	627.0655  Policyholder loss or expense-related premium
738	discounts.--An insurer or person authorized to engage in the
739	business of insurance in this state may include, in the premium
740	charged an insured for any policy, contract, or certificate of
741	insurance, a discount based on the fact that another policy,
742	contract, or certificate of any type has been purchased by the
743	insured from the same insurer or insurer group.
744	Section 12.  Paragraphs (a), (b), (c), (d), (j), (m), and
745	(r) of subsection (6) of section 627.351, Florida Statutes, as
746	amended by chapter 2007-1, Laws of Florida, are amended, and
747	paragraph (ff) is added to that subsection, to read:
748	627.351  Insurance risk apportionment plans.--
749	(6)  CITIZENS PROPERTY INSURANCE CORPORATION.--
750	(a)1.  It is the public purpose of this subsection to
751	ensure the existence of an orderly market for property insurance
752	for Floridians and Florida businesses. The Legislature finds
753	that private insurers are unwilling or unable to provide
754	affordable property insurance coverage in this state to the
755	extent sought and needed. The absence of affordable property
756	insurance threatens the public health, safety, and welfare and
757	likewise threatens the economic health of the state. The state
758	therefore has a compelling public interest and a public purpose
759	to assist in assuring that property in the state is insured and
760	that it is insured at affordable rates so as to facilitate the
761	remediation, reconstruction, and replacement of damaged or
762	destroyed property in order to reduce or avoid the negative
763	effects otherwise resulting to the public health, safety, and
764	welfare, to the economy of the state, and to the revenues of the
765	state and local governments which are needed to provide for the
766	public welfare. It is necessary, therefore, to provide
767	affordable property insurance to applicants who are in good
768	faith entitled to procure insurance through the voluntary market
769	but are unable to do so. The Legislature intends by this
770	subsection that affordable property insurance be provided and
771	that it continue to be provided, as long as necessary, through
772	Citizens Property Insurance Corporation, a government entity
773	that is an integral part of the state, and that is not a private
774	insurance company. To that end, Citizens Property Insurance
775	Corporation shall strive to increase the availability of
776	affordable property insurance in this state, while achieving
777	efficiencies and economies, and while providing service to
778	policyholders, applicants, and agents which is no less than the
779	quality generally provided in the voluntary market, for the
780	achievement of the foregoing public purposes. Because it is
781	essential for this government entity to have the maximum
782	financial resources to pay claims following a catastrophic
783	hurricane, it is the intent of the Legislature that Citizens
784	Property Insurance Corporation continue to be an integral part
785	of the state and that the income of the corporation be exempt
786	from federal income taxation and that interest on the debt
787	obligations issued by the corporation be exempt from federal
788	income taxation. The Legislature finds that actual and
789	threatened catastrophic losses to property in this state from
790	hurricanes have caused insurers to be unwilling or unable to
791	provide property insurance coverage to the extent sought and
792	needed. It is in the public interest and a public purpose to
793	assist in assuring that property in the state is insured so as
794	to facilitate the remediation, reconstruction, and replacement
795	of damaged or destroyed property in order to reduce or avoid the
796	negative effects otherwise resulting to the public health,
797	safety, and welfare; to the economy of the state; and to the
798	revenues of the state and local governments needed to provide
799	for the public welfare. It is necessary, therefore, to provide
800	property insurance to applicants who are in good faith entitled
801	to procure insurance through the voluntary market but are unable
802	to do so. The Legislature intends by this subsection that
803	property insurance be provided and that it continues, as long as
804	necessary, through an entity organized to achieve efficiencies
805	and economies, while providing service to policyholders,
806	applicants, and agents that is no less than the quality
807	generally provided in the voluntary market, all toward the
808	achievement of the foregoing public purposes. Because it is
809	essential for the corporation to have the maximum financial
810	resources to pay claims following a catastrophic hurricane, it
811	is the intent of the Legislature that the income of the
812	corporation be exempt from federal income taxation and that
813	interest on the debt obligations issued by the corporation be
814	exempt from federal income taxation.
815	2.  The Residential Property and Casualty Joint
816	Underwriting Association originally created by this statute
817	shall be known, as of July 1, 2002, as the Citizens Property
818	Insurance Corporation. The corporation shall provide insurance
819	for residential and commercial property, for applicants who are
820	in good faith entitled, but are unable, to procure insurance
821	through the voluntary market. The corporation shall operate
822	pursuant to a plan of operation approved by order of the
823	Financial Services Commission. The plan is subject to continuous
824	review by the commission. The commission may, by order, withdraw
825	approval of all or part of a plan if the commission determines
826	that conditions have changed since approval was granted and that
827	the purposes of the plan require changes in the plan. The
828	corporation shall continue to operate pursuant to the plan of
829	operation approved by the Office of Insurance Regulation until
830	October 1, 2006. For the purposes of this subsection,
831	residential coverage includes both personal lines residential
832	coverage, which consists of the type of coverage provided by
833	homeowner's, mobile home owner's, dwelling, tenant's,
834	condominium unit owner's, and similar policies, and commercial
835	lines residential coverage, which consists of the type of
836	coverage provided by condominium association, apartment
837	building, and similar policies.
838	3.  For the purposes of this subsection, the term
839	"homestead property" means:
840	a.  Property that has been granted a homestead exemption
841	under chapter 196;
842	b.  Property for which the owner has a current, written
843	lease with a renter for a term of at least 7 months and for
844	which the dwelling is insured by the corporation for $200,000 or
845	less;
846	c.  An owner-occupied mobile home or manufactured home, as
847	defined in s. 320.01, which is permanently affixed to real
848	property, is owned by a Florida resident, and has been granted a
849	homestead exemption under chapter 196 or, if the owner does not
850	own the real property, the owner certifies that the mobile home
851	or manufactured home is his or her principal place of residence;
852	d.  Tenant's coverage;
853	e.  Commercial lines residential property; or
854	f.  Any county, district, or municipal hospital; a hospital
855	licensed by any not-for-profit corporation qualified under s.
856	501(c)(3) of the United States Internal Revenue Code; or a
857	continuing care retirement community that is certified under
858	chapter 651 and that receives an exemption from ad valorem taxes
859	under chapter 196.
860	4.  For the purposes of this subsection, the term
861	"nonhomestead property" means property that is not homestead
862	property.
863	5.  Effective January 1, 2009 July 1, 2008, a personal
864	lines residential structure that has a dwelling replacement cost
865	of $1 million or more, or a single condominium unit that has a
866	combined dwelling and content replacement cost of $1 million or
867	more is not eligible for coverage by the corporation. Such
868	dwellings insured by the corporation on December 31, 2008 June
869	30, 2008, may continue to be covered by the corporation until
870	the end of the policy term. However, such dwellings that are
871	insured by the corporation and become ineligible for coverage
872	due to the provisions of this subparagraph may reapply and
873	obtain coverage in the high-risk account and be considered
874	"nonhomestead property" if the property owner provides the
875	corporation with a sworn affidavit from one or more insurance
876	agents, on a form provided by the corporation, stating that the
877	agents have made their best efforts to obtain coverage and that
878	the property has been rejected for coverage by at least one
879	authorized insurer and at least three surplus lines insurers. If
880	such conditions are met, the dwelling may be insured by the
881	corporation for up to 3 years, after which time the dwelling is
882	ineligible for coverage. The office shall approve the method
883	used by the corporation for valuing the dwelling replacement
884	cost for the purposes of this subparagraph. If a policyholder is
885	insured by the corporation prior to being determined to be
886	ineligible pursuant to this subparagraph and such policyholder
887	files a lawsuit challenging the determination, the policyholder
888	may remain insured by the corporation until the conclusion of
889	the litigation.
890	6.  For properties constructed on or after January 1, 2009,
891	the corporation may not insure any property located within 2,500
892	feet landward of the coastal construction control line created
893	pursuant to s. 161.053 unless the property meets the
894	requirements of the code-plus building standards developed by
895	the Florida Building Commission.
896	7.  It is the intent of the Legislature that policyholders,
897	applicants, and agents of the corporation receive service and
898	treatment of the highest possible level but never less than that
899	generally provided in the voluntary market. It also is intended
900	that the corporation be held to service standards no less than
901	those applied to insurers in the voluntary market by the office
902	with respect to responsiveness, timeliness, customer courtesy,
903	and overall dealings with policyholders, applicants, or agents
904	of the corporation.
905	(b)1.  All insurers authorized to write one or more subject
906	lines of business in this state are subject to assessment by the
907	corporation and, for the purposes of this subsection, are
908	referred to collectively as "assessable insurers." Insurers
909	writing one or more subject lines of business in this state
910	pursuant to part VIII of chapter 626 are not assessable
911	insurers, but insureds who procure one or more subject lines of
912	business in this state pursuant to part VIII of chapter 626 are
913	subject to assessment by the corporation and are referred to
914	collectively as "assessable insureds." An authorized insurer's
915	assessment liability shall begin on the first day of the
916	calendar year following the year in which the insurer was issued
917	a certificate of authority to transact insurance for subject
918	lines of business in this state and shall terminate 1 year after
919	the end of the first calendar year during which the insurer no
920	longer holds a certificate of authority to transact insurance
921	for subject lines of business in this state.
922	2.a.  All revenues, assets, liabilities, losses, and
923	expenses of the corporation shall be divided into three separate
924	accounts as follows:
925	(I)  A personal lines account for personal residential
926	policies issued by the corporation or issued by the Residential
927	Property and Casualty Joint Underwriting Association and renewed
928	by the corporation that provide comprehensive, multiperil
929	coverage on risks that are not located in areas eligible for
930	coverage in the Florida Windstorm Underwriting Association as
931	those areas were defined on January 1, 2002, and for such
932	policies that do not provide coverage for the peril of wind on
933	risks that are located in such areas;
934	(II)  A commercial lines account for commercial residential
935	and commercial nonresidential policies issued by the corporation
936	or issued by the Residential Property and Casualty Joint
937	Underwriting Association and renewed by the corporation that
938	provide coverage for basic property perils on risks that are not
939	located in areas eligible for coverage in the Florida Windstorm
940	Underwriting Association as those areas were defined on January
941	1, 2002, and for such policies that do not provide coverage for
942	the peril of wind on risks that are located in such areas; and
943	(III)  A high-risk account for personal residential
944	policies and commercial residential and commercial
945	nonresidential property policies issued by the corporation or
946	transferred to the corporation that provide coverage for the
947	peril of wind on risks that are located in areas eligible for
948	coverage in the Florida Windstorm Underwriting Association as
949	those areas were defined on January 1, 2002. Subject to the
950	approval of a business plan by the Financial Services Commission
951	and Legislative Budget Commission as provided in this sub-sub-
952	subparagraph, but no earlier than March 31, 2007, the
953	corporation may offer policies that provide multiperil coverage
954	and the corporation shall continue to offer policies that
955	provide coverage only for the peril of wind for risks located in
956	areas eligible for coverage in the high-risk account. In issuing
957	multiperil coverage, the corporation may use its approved policy
958	forms and rates for the personal lines account. An applicant or
959	insured who is eligible to purchase a multiperil policy from the
960	corporation may purchase a multiperil policy from an authorized
961	insurer without prejudice to the applicant's or insured's
962	eligibility to prospectively purchase a policy that provides
963	coverage only for the peril of wind from the corporation. An
964	applicant or insured who is eligible for a corporation policy
965	that provides coverage only for the peril of wind may elect to
966	purchase or retain such policy and also purchase or retain
967	coverage excluding wind from an authorized insurer without
968	prejudice to the applicant's or insured's eligibility to
969	prospectively purchase a policy that provides multiperil
970	coverage from the corporation. It is the goal of the Legislature
971	that there would be an overall average savings of 10 percent or
972	more for a policyholder who currently has a wind-only policy
973	with the corporation, and an ex-wind policy with a voluntary
974	insurer or the corporation, and who then obtains a multiperil
975	policy from the corporation. It is the intent of the Legislature
976	that the offer of multiperil coverage in the high-risk account
977	be made and implemented in a manner that does not adversely
978	affect the tax-exempt status of the corporation or
979	creditworthiness of or security for currently outstanding
980	financing obligations or credit facilities of the high-risk
981	account, the personal lines account, or the commercial lines
982	account. By March 1, 2007, the corporation shall prepare and
983	submit for approval by the Financial Services Commission and
984	Legislative Budget Commission a report detailing the
985	corporation's business plan for issuing multiperil coverage in
986	the high-risk account. The business plan shall be approved or
987	disapproved within 30 days after receipt, as submitted or
988	modified and resubmitted by the corporation. The business plan
989	must include: the impact of such multiperil coverage on the
990	corporation's financial resources, the impact of such multiperil
991	coverage on the corporation's tax-exempt status, the manner in
992	which the corporation plans to implement the processing of
993	applications and policy forms for new and existing
994	policyholders, the impact of such multiperil coverage on the
995	corporation's ability to deliver customer service at the high
996	level required by this subsection, the ability of the
997	corporation to process claims, the ability of the corporation to
998	quote and issue policies, the impact of such multiperil coverage
999	on the corporation's agents, the impact of such multiperil
1000	coverage on the corporation's existing policyholders, and the
1001	impact of such multiperil coverage on rates and premium. The
1002	high-risk account must also include quota share primary
1003	insurance under subparagraph (c)2. The area eligible for
1004	coverage under the high-risk account also includes the area
1005	within Port Canaveral, which is bordered on the south by the
1006	City of Cape Canaveral, bordered on the west by the Banana
1007	River, and bordered on the north by Federal Government property.
1008	b.  The three separate accounts must be maintained as long
1009	as financing obligations entered into by the Florida Windstorm
1010	Underwriting Association or Residential Property and Casualty
1011	Joint Underwriting Association are outstanding, in accordance
1012	with the terms of the corresponding financing documents. When
1013	the financing obligations are no longer outstanding, in
1014	accordance with the terms of the corresponding financing
1015	documents, the corporation may use a single account for all
1016	revenues, assets, liabilities, losses, and expenses of the
1017	corporation. Consistent with the requirement of this
1018	subparagraph and prudent investment policies that minimize the
1019	cost of carrying debt, the board shall exercise its best efforts
1020	to retire existing debt or to obtain approval of necessary
1021	parties to amend the terms of existing debt, so as to structure
1022	the most efficient plan to consolidate the three separate
1023	accounts into a single account. By February 1, 2007, the board
1024	shall submit a report to the Financial Services Commission, the
1025	President of the Senate, and the Speaker of the House of
1026	Representatives which includes an analysis of consolidating the
1027	accounts, the actions the board has taken to minimize the cost
1028	of carrying debt, and its recommendations for executing the most
1029	efficient plan.
1030	c.  Creditors of the Residential Property and Casualty
1031	Joint Underwriting Association and of the accounts specified in
1032	sub-sub-subparagraphs a.(I) and (II) may shall have a claim
1033	against, and recourse to, the accounts referred to in sub-sub-
1034	subparagraphs a.(I) and (II) and shall have no claim against, or
1035	recourse to, the account referred to in sub-sub-subparagraph
1036	a.(III). Creditors of the Florida Windstorm Underwriting
1037	Association shall have a claim against, and recourse to, the
1038	account referred to in sub-sub-subparagraph a.(III) and shall
1039	have no claim against, or recourse to, the accounts referred to
1040	in sub-sub-subparagraphs a.(I) and (II).
1041	d.  Revenues, assets, liabilities, losses, and expenses not
1042	attributable to particular accounts shall be prorated among the
1043	accounts.
1044	e.  The Legislature finds that the revenues of the
1045	corporation are revenues that are necessary to meet the
1046	requirements set forth in documents authorizing the issuance of
1047	bonds under this subsection.
1048	f.  No part of the income of the corporation may inure to
1049	the benefit of any private person.
1050	3.  With respect to a deficit in an account:
1051	a.  When the deficit incurred in a particular calendar year
1052	is not greater than 10 percent of the aggregate statewide direct
1053	written premium for the subject lines of business for the prior
1054	calendar year, the entire deficit shall be recovered through
1055	regular assessments of assessable insurers under paragraph (p)
1056	and assessable insureds.
1057	b.  When the deficit incurred in a particular calendar year
1058	exceeds 10 percent of the aggregate statewide direct written
1059	premium for the subject lines of business for the prior calendar
1060	year, the corporation shall levy regular assessments on
1061	assessable insurers under paragraph (p) and on assessable
1062	insureds in an amount equal to the greater of 10 percent of the
1063	deficit or 10 percent of the aggregate statewide direct written
1064	premium for the subject lines of business for the prior calendar
1065	year. Any remaining deficit shall be recovered through emergency
1066	assessments under sub-subparagraph d.
1067	c.  Each assessable insurer's share of the amount being
1068	assessed under sub-subparagraph a. or sub-subparagraph b. shall
1069	be in the proportion that the assessable insurer's direct
1070	written premium for the subject lines of business for the year
1071	preceding the assessment bears to the aggregate statewide direct
1072	written premium for the subject lines of business for that year.
1073	The assessment percentage applicable to each assessable insured
1074	is the ratio of the amount being assessed under sub-subparagraph
1075	a. or sub-subparagraph b. to the aggregate statewide direct
1076	written premium for the subject lines of business for the prior
1077	year. Assessments levied by the corporation on assessable
1078	insurers under sub-subparagraphs a. and b. shall be paid as
1079	required by the corporation's plan of operation and paragraph
1080	(p). Notwithstanding any other provision of this subsection, the
1081	aggregate amount of a regular assessment for a deficit incurred
1082	in a particular calendar year shall be reduced by the estimated
1083	amount to be received by the corporation from the Citizens
1084	policyholder surcharge under subparagraph (c)10.11. and the
1085	amount collected or estimated to be collected from the
1086	assessment on Citizens policyholders pursuant to sub-
1087	subparagraph i. Assessments levied by the corporation on
1088	assessable insureds under sub-subparagraphs a. and b. shall be
1089	collected by the surplus lines agent at the time the surplus
1090	lines agent collects the surplus lines tax required by s.
1091	626.932 and shall be paid to the Florida Surplus Lines Service
1092	Office at the time the surplus lines agent pays the surplus
1093	lines tax to the Florida Surplus Lines Service Office. Upon
1094	receipt of regular assessments from surplus lines agents, the
1095	Florida Surplus Lines Service Office shall transfer the
1096	assessments directly to the corporation as determined by the
1097	corporation.
1098	d.  Upon a determination by the board of governors that a
1099	deficit in an account exceeds the amount that will be recovered
1100	through regular assessments under sub-subparagraph a. or sub-
1101	subparagraph b., the board shall levy, after verification by the
1102	office, emergency assessments, for as many years as necessary to
1103	cover the deficits, to be collected by assessable insurers and
1104	the corporation and collected from assessable insureds upon
1105	issuance or renewal of policies for subject lines of business,
1106	excluding National Flood Insurance policies. The amount of the
1107	emergency assessment collected in a particular year shall be a
1108	uniform percentage of that year's direct written premium for
1109	subject lines of business and all accounts of the corporation,
1110	excluding National Flood Insurance Program policy premiums, as
1111	annually determined by the board and verified by the office. The
1112	office shall verify the arithmetic calculations involved in the
1113	board's determination within 30 days after receipt of the
1114	information on which the determination was based.
1115	Notwithstanding any other provision of law, the corporation and
1116	each assessable insurer that writes subject lines of business
1117	shall collect emergency assessments from its policyholders
1118	without such obligation being affected by any credit,
1119	limitation, exemption, or deferment. Emergency assessments
1120	levied by the corporation on assessable insureds shall be
1121	collected by the surplus lines agent at the time the surplus
1122	lines agent collects the surplus lines tax required by s.
1123	626.932 and shall be paid to the Florida Surplus Lines Service
1124	Office at the time the surplus lines agent pays the surplus
1125	lines tax to the Florida Surplus Lines Service Office. The
1126	emergency assessments so collected shall be transferred directly
1127	to the corporation on a periodic basis as determined by the
1128	corporation and shall be held by the corporation solely in the
1129	applicable account. The aggregate amount of emergency
1130	assessments levied for an account under this sub-subparagraph in
1131	any calendar year may not exceed the greater of 10 percent of
1132	the amount needed to cover the original deficit, plus interest,
1133	fees, commissions, required reserves, and other costs associated
1134	with financing of the original deficit, or 10 percent of the
1135	aggregate statewide direct written premium for subject lines of
1136	business and for all accounts of the corporation for the prior
1137	year, plus interest, fees, commissions, required reserves, and
1138	other costs associated with financing the original deficit.
1139	e.  The corporation may pledge the proceeds of assessments,
1140	projected recoveries from the Florida Hurricane Catastrophe
1141	Fund, other insurance and reinsurance recoverables, policyholder
1142	surcharges and other surcharges, and other funds available to
1143	the corporation as the source of revenue for and to secure bonds
1144	issued under paragraph (p), bonds or other indebtedness issued
1145	under subparagraph (c)3., or lines of credit or other financing
1146	mechanisms issued or created under this subsection, or to retire
1147	any other debt incurred as a result of deficits or events giving
1148	rise to deficits, or in any other way that the board determines
1149	will efficiently recover such deficits. The purpose of the lines
1150	of credit or other financing mechanisms is to provide additional
1151	resources to assist the corporation in covering claims and
1152	expenses attributable to a catastrophe. As used in this
1153	subsection, the term "assessments" includes regular assessments
1154	under sub-subparagraph a., sub-subparagraph b., or subparagraph
1155	(p)1. and emergency assessments under sub-subparagraph d.
1156	Emergency assessments collected under sub-subparagraph d. are
1157	not part of an insurer's rates, are not premium, and are not
1158	subject to premium tax, fees, or commissions; however, failure
1159	to pay the emergency assessment shall be treated as failure to
1160	pay premium. The emergency assessments under sub-subparagraph d.
1161	shall continue as long as any bonds issued or other indebtedness
1162	incurred with respect to a deficit for which the assessment was
1163	imposed remain outstanding, unless adequate provision has been
1164	made for the payment of such bonds or other indebtedness
1165	pursuant to the documents governing such bonds or other
1166	indebtedness.
1167	f.  As used in this subsection for purposes of any deficit
1168	incurred on or after January 25, 2007, the term "subject lines
1169	of business" means insurance written by assessable insurers or
1170	procured by assessable insureds for all property and casualty
1171	lines of business in this state, but not including workers'
1172	compensation or medical malpractice. As used in the sub-
1173	subparagraph, the term "property and casualty lines of business"
1174	includes all lines of business identified on Form 2, Exhibit of
1175	Premiums and Losses, in the annual statement required of
1176	authorized insurers by s. 624.424 and any rule adopted under
1177	this section, except for those lines identified as accident and
1178	health insurance and except for policies written under the
1179	National Flood Insurance Program or the Federal Crop Insurance
1180	Program. For purposes of this sub-subparagraph, the term
1181	"workers' compensation" includes both workers' compensation
1182	insurance and excess workers' compensation insurance.
1183	g.  The Florida Surplus Lines Service Office shall
1184	determine annually the aggregate statewide written premium in
1185	subject lines of business procured by assessable insureds and
1186	shall report that information to the corporation in a form and
1187	at a time the corporation specifies to ensure that the
1188	corporation can meet the requirements of this subsection and the
1189	corporation's financing obligations.
1190	h.  The Florida Surplus Lines Service Office shall verify
1191	the proper application by surplus lines agents of assessment
1192	percentages for regular assessments and emergency assessments
1193	levied under this subparagraph on assessable insureds and shall
1194	assist the corporation in ensuring the accurate, timely
1195	collection and payment of assessments by surplus lines agents as
1196	required by the corporation.
1197	i.  If a deficit is incurred in any account in 2008 or
1198	thereafter, the board of governors shall levy an immediate
1199	assessment against the premium of each nonhomestead property
1200	policyholder in all accounts of the corporation, as a uniform
1201	percentage of the premium of the policy of up to 10 percent of
1202	such premium, which funds shall be used to offset the deficit.
1203	If this assessment is insufficient to eliminate the deficit, the
1204	board of governors shall levy an additional assessment against
1205	all policyholders of the corporation, which shall be collected
1206	at the time of issuance or renewal of a policy, as a uniform
1207	percentage of the premium for the policy of up to 10 percent of
1208	such premium, which funds shall be used to further offset the
1209	deficit.
1210	j.  The board of governors shall maintain separate
1211	accounting records that consolidate data for nonhomestead
1212	properties, including, but not limited to, number of policies,
1213	insured values, premiums written, and losses. The board of
1214	governors shall annually report to the office and the
1215	Legislature a summary of such data.
1216	(c)  The plan of operation of the corporation:
1217	1.  Must provide for adoption of residential property and
1218	casualty insurance policy forms and commercial residential and
1219	nonresidential property insurance forms, which forms must be
1220	approved by the office prior to use. The corporation shall adopt
1221	the following policy forms:
1222	a.  Standard personal lines policy forms that are
1223	comprehensive multiperil policies providing full coverage of a
1224	residential property equivalent to the coverage provided in the
1225	private insurance market under an HO-3, HO-4, or HO-6 policy.
1226	b.  Basic personal lines policy forms that are policies
1227	similar to an HO-8 policy or a dwelling fire policy that provide
1228	coverage meeting the requirements of the secondary mortgage
1229	market, but which coverage is more limited than the coverage
1230	under a standard policy.
1231	c.  Commercial lines residential and nonresidential policy
1232	forms that are generally similar to the basic perils of full
1233	coverage obtainable for commercial residential structures and
1234	commercial nonresidential structures in the admitted voluntary
1235	market.
1236	d.  Personal lines and commercial lines residential
1237	property insurance forms that cover the peril of wind only. The
1238	forms are applicable only to residential properties located in
1239	areas eligible for coverage under the high-risk account referred
1240	to in sub-subparagraph (b)2.a.
1241	e.  Commercial lines nonresidential property insurance
1242	forms that cover the peril of wind only. The forms are
1243	applicable only to nonresidential properties located in areas
1244	eligible for coverage under the high-risk account referred to in
1245	sub-subparagraph (b)2.a.
1246	f.  The corporation may adopt variations of the policy
1247	forms listed in sub-subparagraphs a.-e. that contain more
1248	restrictive coverage.
1249	2.a.  Must provide that the corporation adopt a program in
1250	which the corporation and authorized insurers enter into quota
1251	share primary insurance agreements for hurricane coverage, as
1252	defined in s. 627.4025(2)(a), for eligible risks, and adopt
1253	property insurance forms for eligible risks which cover the
1254	peril of wind only. As used in this subsection, the term:
1255	(I)  "Quota share primary insurance" means an arrangement
1256	in which the primary hurricane coverage of an eligible risk is
1257	provided in specified percentages by the corporation and an
1258	authorized insurer. The corporation and authorized insurer are
1259	each solely responsible for a specified percentage of hurricane
1260	coverage of an eligible risk as set forth in a quota share
1261	primary insurance agreement between the corporation and an
1262	authorized insurer and the insurance contract. The
1263	responsibility of the corporation or authorized insurer to pay
1264	its specified percentage of hurricane losses of an eligible
1265	risk, as set forth in the quota share primary insurance
1266	agreement, may not be altered by the inability of the other
1267	party to the agreement to pay its specified percentage of
1268	hurricane losses. Eligible risks that are provided hurricane
1269	coverage through a quota share primary insurance arrangement
1270	must be provided policy forms that set forth the obligations of
1271	the corporation and authorized insurer under the arrangement,
1272	clearly specify the percentages of quota share primary insurance
1273	provided by the corporation and authorized insurer, and
1274	conspicuously and clearly state that neither the authorized
1275	insurer nor the corporation may be held responsible beyond its
1276	specified percentage of coverage of hurricane losses.
1277	(II)  "Eligible risks" means personal lines residential and
1278	commercial lines residential risks that meet the underwriting
1279	criteria of the corporation and are located in areas that were
1280	eligible for coverage by the Florida Windstorm Underwriting
1281	Association on January 1, 2002.
1282	b.  The corporation may enter into quota share primary
1283	insurance agreements with authorized insurers at corporation
1284	coverage levels of 90 percent and 50 percent.
1285	c.  If the corporation determines that additional coverage
1286	levels are necessary to maximize participation in quota share
1287	primary insurance agreements by authorized insurers, the
1288	corporation may establish additional coverage levels. However,
1289	the corporation's quota share primary insurance coverage level
1290	may not exceed 90 percent.
1291	d.  Any quota share primary insurance agreement entered
1292	into between an authorized insurer and the corporation must
1293	provide for a uniform specified percentage of coverage of
1294	hurricane losses, by county or territory as set forth by the
1295	corporation board, for all eligible risks of the authorized
1296	insurer covered under the quota share primary insurance
1297	agreement.
1298	e.  Any quota share primary insurance agreement entered
1299	into between an authorized insurer and the corporation is
1300	subject to review and approval by the office. However, such
1301	agreement shall be authorized only as to insurance contracts
1302	entered into between an authorized insurer and an insured who is
1303	already insured by the corporation for wind coverage.
1304	f.  For all eligible risks covered under quota share
1305	primary insurance agreements, the exposure and coverage levels
1306	for both the corporation and authorized insurers shall be
1307	reported by the corporation to the Florida Hurricane Catastrophe
1308	Fund. For all policies of eligible risks covered under quota
1309	share primary insurance agreements, the corporation and the
1310	authorized insurer shall maintain complete and accurate records
1311	for the purpose of exposure and loss reimbursement audits as
1312	required by Florida Hurricane Catastrophe Fund rules. The
1313	corporation and the authorized insurer shall each maintain
1314	duplicate copies of policy declaration pages and supporting
1315	claims documents.
1316	g.  The corporation board shall establish in its plan of
1317	operation standards for quota share agreements which ensure that
1318	there is no discriminatory application among insurers as to the
1319	terms of quota share agreements, pricing of quota share
1320	agreements, incentive provisions if any, and consideration paid
1321	for servicing policies or adjusting claims.
1322	h.  The quota share primary insurance agreement between the
1323	corporation and an authorized insurer must set forth the
1324	specific terms under which coverage is provided, including, but
1325	not limited to, the sale and servicing of policies issued under
1326	the agreement by the insurance agent of the authorized insurer
1327	producing the business, the reporting of information concerning
1328	eligible risks, the payment of premium to the corporation, and
1329	arrangements for the adjustment and payment of hurricane claims
1330	incurred on eligible risks by the claims adjuster and personnel
1331	of the authorized insurer. Entering into a quota sharing
1332	insurance agreement between the corporation and an authorized
1333	insurer shall be voluntary and at the discretion of the
1334	authorized insurer.
1335	3.  May provide that the corporation may employ or
1336	otherwise contract with individuals or other entities to provide
1337	administrative or professional services that may be appropriate
1338	to effectuate the plan. The corporation shall have the power to
1339	borrow funds, by issuing bonds or by incurring other
1340	indebtedness, and shall have other powers reasonably necessary
1341	to effectuate the requirements of this subsection, including,
1342	without limitation, the power to issue bonds and incur other
1343	indebtedness in order to refinance outstanding bonds or other
1344	indebtedness. The corporation may, but is not required to, seek
1345	judicial validation of its bonds or other indebtedness under
1346	chapter 75. The corporation may issue bonds or incur other
1347	indebtedness, or have bonds issued on its behalf by a unit of
1348	local government pursuant to subparagraph (p)2. (g)2., in the
1349	absence of a hurricane or other weather-related event, upon a
1350	determination by the corporation, subject to approval by the
1351	office, that such action would enable it to efficiently meet the
1352	financial obligations of the corporation and that such
1353	financings are reasonably necessary to effectuate the
1354	requirements of this subsection. The corporation is authorized
1355	to take all actions needed to facilitate tax-free status for any
1356	such bonds or indebtedness, including formation of trusts or
1357	other affiliated entities. The corporation shall have the
1358	authority to pledge assessments, projected recoveries from the
1359	Florida Hurricane Catastrophe Fund, other reinsurance
1360	recoverables, market equalization and other surcharges, and
1361	other funds available to the corporation as security for bonds
1362	or other indebtedness. In recognition of s. 10, Art. I of the
1363	State Constitution, prohibiting the impairment of obligations of
1364	contracts, it is the intent of the Legislature that no action be
1365	taken whose purpose is to impair any bond indenture or financing
1366	agreement or any revenue source committed by contract to such
1367	bond or other indebtedness.
1368	4.a.  Must require that the corporation operate subject to
1369	the supervision and approval of a board of governors consisting
1370	of eight individuals who are residents of this state, from
1371	different geographical areas of this state. The Governor, the
1372	Chief Financial Officer, the President of the Senate, and the
1373	Speaker of the House of Representatives shall each appoint two
1374	members of the board. At least one of the two members appointed
1375	by each appointing officer must have demonstrated expertise in
1376	insurance. The Chief Financial Officer shall designate one of
1377	the appointees as chair. All board members serve at the pleasure
1378	of the appointing officer. All members of the board of governors
1379	are subject to removal at will by the officers who appointed
1380	them. All board members, including the chair, must be appointed
1381	to serve for 3-year terms beginning annually on a date
1382	designated by the plan. Any board vacancy shall be filled for
1383	the unexpired term by the appointing officer. The Chief
1384	Financial Officer shall appoint a technical advisory group to
1385	provide information and advice to the board of governors in
1386	connection with the board's duties under this subsection. The
1387	executive director and senior managers of the corporation shall
1388	be engaged by the board and serve at the pleasure of the board.
1389	Any executive director appointed on or after July 1, 2006, is
1390	subject to confirmation by the Senate. The executive director is
1391	responsible for employing other staff as the corporation may
1392	require, subject to review and concurrence by the board.
1393	b.  The board shall create a Market Accountability Advisory
1394	Committee to assist the corporation in developing awareness of
1395	its rates and its customer and agent service levels in
1396	relationship to the voluntary market insurers writing similar
1397	coverage. The members of the advisory committee shall consist of
1398	the following 11 persons, one of whom must be elected chair by
1399	the members of the committee: four representatives, one
1400	appointed by the Florida Association of Insurance Agents, one by
1401	the Florida Association of Insurance and Financial Advisors, one
1402	by the Professional Insurance Agents of Florida, and one by the
1403	Latin American Association of Insurance Agencies; three
1404	representatives appointed by the insurers with the three highest
1405	voluntary market share of residential property insurance
1406	business in the state; one representative from the Office of
1407	Insurance Regulation; one consumer appointed by the board who is
1408	insured by the corporation at the time of appointment to the
1409	committee; one representative appointed by the Florida
1410	Association of Realtors; and one representative appointed by the
1411	Florida Bankers Association. All members must serve for 3-year
1412	terms and may serve for consecutive terms. The committee shall
1413	report to the corporation at each board meeting on insurance
1414	market issues which may include rates and rate competition with
1415	the voluntary market; service, including policy issuance, claims
1416	processing, and general responsiveness to policyholders,
1417	applicants, and agents; and matters relating to depopulation.
1418	5.  Must provide a procedure for determining the
1419	eligibility of a risk for coverage, as follows:
1420	a.  Subject to the provisions of s. 627.3517, with respect
1421	to personal lines residential risks, if the risk is offered
1422	coverage from an authorized insurer at the insurer's approved
1423	rate under either a standard policy including wind coverage or,
1424	if consistent with the insurer's underwriting rules as filed
1425	with the office, a basic policy including wind coverage, for a
1426	new application to the corporation for coverage, the risk is not
1427	eligible for any policy issued by the corporation unless the
1428	premium for coverage from the authorized insurer is more than 15
1429	25 percent greater than the premium for comparable coverage from
1430	the corporation. If the risk is not able to obtain any such
1431	offer, the risk is eligible for either a standard policy
1432	including wind coverage or a basic policy including wind
1433	coverage issued by the corporation; however, if the risk could
1434	not be insured under a standard policy including wind coverage
1435	regardless of market conditions, the risk shall be eligible for
1436	a basic policy including wind coverage unless rejected under
1437	subparagraph 9. 8. However, with regard to a policyholder of the
1438	corporation or a policyholder removed from the corporation
1439	through an assumption agreement until the end of the assumption
1440	period, the policyholder remains eligible for coverage from the
1441	corporation regardless of any offer of coverage from an
1442	authorized insurer or surplus lines insurer. The corporation
1443	shall determine the type of policy to be provided on the basis
1444	of objective standards specified in the underwriting manual and
1445	based on generally accepted underwriting practices.
1446	(I)  If the risk accepts an offer of coverage through the
1447	market assistance plan or an offer of coverage through a
1448	mechanism established by the corporation before a policy is
1449	issued to the risk by the corporation or during the first 30
1450	days of coverage by the corporation, and the producing agent who
1451	submitted the application to the plan or to the corporation is
1452	not currently appointed by the insurer, the insurer shall:
1453	(A)  Pay to the producing agent of record of the policy,
1454	for the first year, an amount that is the greater of the
1455	insurer's usual and customary commission for the type of policy
1456	written or a fee equal to the usual and customary commission of
1457	the corporation; or
1458	(B)  Offer to allow the producing agent of record of the
1459	policy to continue servicing the policy for a period of not less
1460	than 1 year and offer to pay the agent the greater of the
1461	insurer's or the corporation's usual and customary commission
1462	for the type of policy written.
1463
1464	If the producing agent is unwilling or unable to accept
1465	appointment, the new insurer shall pay the agent in accordance
1466	with sub-sub-sub-subparagraph (A).
1467	(II)  When the corporation enters into a contractual
1468	agreement for a take-out plan, the producing agent of record of
1469	the corporation policy is entitled to retain any unearned
1470	commission on the policy, and the insurer shall:
1471	(A)  Pay to the producing agent of record of the
1472	corporation policy, for the first year, an amount that is the
1473	greater of the insurer's usual and customary commission for the
1474	type of policy written or a fee equal to the usual and customary
1475	commission of the corporation; or
1476	(B)  Offer to allow the producing agent of record of the
1477	corporation policy to continue servicing the policy for a period
1478	of not less than 1 year and offer to pay the agent the greater
1479	of the insurer's or the corporation's usual and customary
1480	commission for the type of policy written.
1481
1482	If the producing agent is unwilling or unable to accept
1483	appointment, the new insurer shall pay the agent in accordance
1484	with sub-sub-sub-subparagraph (A).
1485	b.  With respect to commercial lines residential risks, for
1486	a new application to the corporation for coverage, if the risk
1487	is offered coverage under a policy including wind coverage from
1488	an authorized insurer at its approved rate, the risk is not
1489	eligible for any policy issued by the corporation unless the
1490	premium for coverage from the authorized insurer is more than 15
1491	25 percent greater than the premium for comparable coverage from
1492	the corporation. If the risk is not able to obtain any such
1493	offer, the risk is eligible for a policy including wind coverage
1494	issued by the corporation. However, with regard to a
1495	policyholder of the corporation or a policyholder removed from
1496	the corporation through an assumption agreement until the end of
1497	the assumption period, the policyholder remains eligible for
1498	coverage from the corporation regardless of any offer of
1499	coverage from an authorized insurer or surplus lines insurer.
1500	(I)  If the risk accepts an offer of coverage through the
1501	market assistance plan or an offer of coverage through a
1502	mechanism established by the corporation before a policy is
1503	issued to the risk by the corporation or during the first 30
1504	days of coverage by the corporation, and the producing agent who
1505	submitted the application to the plan or the corporation is not
1506	currently appointed by the insurer, the insurer shall:
1507	(A)  Pay to the producing agent of record of the policy,
1508	for the first year, an amount that is the greater of the
1509	insurer's usual and customary commission for the type of policy
1510	written or a fee equal to the usual and customary commission of
1511	the corporation; or
1512	(B)  Offer to allow the producing agent of record of the
1513	policy to continue servicing the policy for a period of not less
1514	than 1 year and offer to pay the agent the greater of the
1515	insurer's or the corporation's usual and customary commission
1516	for the type of policy written.
1517
1518	If the producing agent is unwilling or unable to accept
1519	appointment, the new insurer shall pay the agent in accordance
1520	with sub-sub-sub-subparagraph (A).
1521	(II)  When the corporation enters into a contractual
1522	agreement for a take-out plan, the producing agent of record of
1523	the corporation policy is entitled to retain any unearned
1524	commission on the policy, and the insurer shall:
1525	(A)  Pay to the producing agent of record of the
1526	corporation policy, for the first year, an amount that is the
1527	greater of the insurer's usual and customary commission for the
1528	type of policy written or a fee equal to the usual and customary
1529	commission of the corporation; or
1530	(B)  Offer to allow the producing agent of record of the
1531	corporation policy to continue servicing the policy for a period
1532	of not less than 1 year and offer to pay the agent the greater
1533	of the insurer's or the corporation's usual and customary
1534	commission for the type of policy written.
1535
1536	If the producing agent is unwilling or unable to accept
1537	appointment, the new insurer shall pay the agent in accordance
1538	with sub-sub-sub-subparagraph (A).
1539	c.  For purposes of determining comparable coverage under
1540	sub-subparagraphs a. and b., the comparison shall be based on
1541	those forms and coverages that are reasonably comparable. The
1542	corporation may rely on a determination of comparable coverage
1543	and premium made by the producing agent who submits the
1544	application to the corporation, made in the agent's capacity as
1545	the corporation's agent. A comparison may be made solely of the
1546	premium with respect to the main building or structure only on
1547	the following basis: the same coverage A or other building
1548	limits; the same percentage hurricane deductible that applies on
1549	an annual basis or that applies to each hurricane for commercial
1550	residential property; the same percentage of ordinance and law
1551	coverage, if the same limit is offered by both the corporation
1552	and the authorized insurer; the same mitigation credits, to the
1553	extent the same types of credits are offered both by the
1554	corporation and the authorized insurer; the same method for loss
1555	payment, such as replacement cost or actual cash value, if the
1556	same method is offered both by the corporation and the
1557	authorized insurer in accordance with underwriting rules; and
1558	any other form or coverage that is reasonably comparable as
1559	determined by the board. If an application is submitted to the
1560	corporation for wind-only coverage in the high-risk account, the
1561	premium for the corporation's wind-only policy plus the premium
1562	for the ex-wind policy that is offered by an authorized insurer
1563	to the applicant shall be compared to the premium for multiperil
1564	coverage offered by an authorized insurer, subject to the
1565	standards for comparison specified in this subparagraph. If the
1566	corporation or the applicant requests from the authorized
1567	insurer a breakdown of the premium of the offer by types of
1568	coverage so that a comparison may be made by the corporation or
1569	its agent and the authorized insurer refuses or is unable to
1570	provide such information, the corporation may treat the offer as
1571	not being an offer of coverage from an authorized insurer at the
1572	insurer's approved rate.
1573	6.  Must provide by July 1, 2007, that an application for
1574	coverage for a new policy is subject to a waiting period of 10
1575	days before coverage is effective, during which time the
1576	corporation shall make such application available for review by
1577	general lines agents and authorized property and casualty
1578	insurers. The board shall approve an exception that allows for
1579	coverage to be effective before the end of the 10-day waiting
1580	period, for coverage issued in conjunction with a real estate
1581	closing. The board may approve such other exceptions as the
1582	board determines are necessary to prevent lapses in coverage.
1583	6.7.  Must include rules for classifications of risks and
1584	rates therefor.
1585	7.8.  Must provide that if premium and investment income
1586	for an account attributable to a particular calendar year are in
1587	excess of projected losses and expenses for the account
1588	attributable to that year, such excess shall be held in surplus
1589	in the account. Such surplus shall be available to defray
1590	deficits in that account as to future years and shall be used
1591	for that purpose prior to assessing assessable insurers and
1592	assessable insureds as to any calendar year.
1593	8.9.  Must provide objective criteria and procedures to be
1594	uniformly applied for all applicants in determining whether an
1595	individual risk is so hazardous as to be uninsurable. In making
1596	this determination and in establishing the criteria and
1597	procedures, the following shall be considered:
1598	a.  Whether the likelihood of a loss for the individual
1599	risk is substantially higher than for other risks of the same
1600	class; and
1601	b.  Whether the uncertainty associated with the individual
1602	risk is such that an appropriate premium cannot be determined.
1603
1604	The acceptance or rejection of a risk by the corporation shall
1605	be construed as the private placement of insurance, and the
1606	provisions of chapter 120 shall not apply.
1607	9.10.  Must provide that the corporation shall make its
1608	best efforts to procure catastrophe reinsurance at reasonable
1609	rates, to cover its projected 100-year probable maximum loss as
1610	determined by the board of governors.
1611	10.11.  Must provide that in the event of regular deficit
1612	assessments under sub-subparagraph (b)3.a. or sub-subparagraph
1613	(b)3.b., in the personal lines account, the commercial lines
1614	residential account, or the high-risk account, the corporation
1615	shall levy upon corporation policyholders in its next rate
1616	filing, or by a separate rate filing solely for this purpose, a
1617	Citizens policyholder surcharge arising from a regular
1618	assessment in such account in a percentage equal to the total
1619	amount of such regular assessments divided by the aggregate
1620	statewide direct written premium for subject lines of business
1621	for the prior calendar year. For purposes of calculating the
1622	Citizens policyholder surcharge to be levied under this
1623	subparagraph, the total amount of the regular assessment to
1624	which this surcharge is related shall be determined as set forth
1625	in subparagraph (b)3., without deducting the estimated Citizens
1626	policyholder surcharge. Citizens policyholder surcharges under
1627	this subparagraph are not considered premium and are not subject
1628	to commissions, fees, or premium taxes; however, failure to pay
1629	a market equalization surcharge shall be treated as failure to
1630	pay premium.
1631	11.12.  The policies issued by the corporation must provide
1632	that, if the corporation or the market assistance plan obtains
1633	an offer from an authorized insurer to cover the risk at its
1634	approved rates, the risk is no longer eligible for renewal
1635	through the corporation, except as otherwise provided in this
1636	subsection.
1637	12.13.  Corporation policies and applications must include
1638	a notice that the corporation policy could, under this section,
1639	be replaced with a policy issued by an authorized insurer that
1640	does not provide coverage identical to the coverage provided by
1641	the corporation. The notice shall also specify that acceptance
1642	of corporation coverage creates a conclusive presumption that
1643	the applicant or policyholder is aware of this potential.
1644	13.14.  May establish, subject to approval by the office,
1645	different eligibility requirements and operational procedures
1646	for any line or type of coverage for any specified county or
1647	area if the board determines that such changes to the
1648	eligibility requirements and operational procedures are
1649	justified due to the voluntary market being sufficiently stable
1650	and competitive in such area or for such line or type of
1651	coverage and that consumers who, in good faith, are unable to
1652	obtain insurance through the voluntary market through ordinary
1653	methods would continue to have access to coverage from the
1654	corporation. When coverage is sought in connection with a real
1655	property transfer, such requirements and procedures shall not
1656	provide for an effective date of coverage later than the date of
1657	the closing of the transfer as established by the transferor,
1658	the transferee, and, if applicable, the lender.
1659	14.15.  Must provide that, with respect to the high-risk
1660	account, any assessable insurer with a surplus as to
1661	policyholders of $25 million or less writing 25 percent or more
1662	of its total countrywide property insurance premiums in this
1663	state may petition the office, within the first 90 days of each
1664	calendar year, to qualify as a limited apportionment company. A
1665	regular assessment levied by the corporation on a limited
1666	apportionment company for a deficit incurred by the corporation
1667	for the high-risk account in 2006 or thereafter may be paid to
1668	the corporation on a monthly basis as the assessments are
1669	collected by the limited apportionment company from its insureds
1670	pursuant to s. 627.3512, but the regular assessment must be paid
1671	in full within 12 months after being levied by the corporation.
1672	A limited apportionment company shall collect from its
1673	policyholders any emergency assessment imposed under sub-
1674	subparagraph (b)3.d. The plan shall provide that, if the office
1675	determines that any regular assessment will result in an
1676	impairment of the surplus of a limited apportionment company,
1677	the office may direct that all or part of such assessment be
1678	deferred as provided in subparagraph (p)4. (g)4. However, there
1679	shall be no limitation or deferment of an emergency assessment
1680	to be collected from policyholders under sub-subparagraph
1681	(b)3.d.
1682	15.16.  Must provide that the corporation appoint as its
1683	licensed agents only those agents who also hold an appointment
1684	as defined in s. 626.015(3) with an insurer who at the time of
1685	the agent's initial appointment by the corporation is authorized
1686	to write and is actually writing personal lines residential
1687	property coverage, commercial residential property coverage, or
1688	commercial nonresidential property coverage within the state.
1689	16.17.  Must provide, by July 1, 2007, a premium payment
1690	plan option to its policyholders which allows at a minimum for
1691	quarterly and semiannual payment of premiums. A monthly payment
1692	plan may, but is not required to, be offered.
1693	18.  Must provide, effective June 1, 2007, that the
1694	corporation contract with each insurer providing the non-wind
1695	coverage for risks insured by the corporation in the high-risk
1696	account, requiring that the insurer provide claims adjusting
1697	services for the wind coverage provided by the corporation for
1698	such risks. An insurer is required to enter into this contract
1699	as a condition of providing non-wind coverage for a risk that is
1700	insured by the corporation in the high-risk account unless the
1701	board finds, after a hearing, that the insurer is not capable of
1702	providing adjusting services at an acceptable level of quality
1703	to corporation policyholders. The terms and conditions of such
1704	contracts must be substantially the same as the contracts that
1705	the corporation executed with insurers under the "adjust-your-
1706	own" program in 2006, except as may be mutually agreed to by the
1707	parties and except for such changes that the board determines
1708	are necessary to ensure that claims are adjusted appropriately.
1709	The corporation shall provide a process for neutral arbitration
1710	of any dispute between the corporation and the insurer regarding
1711	the terms of the contract. The corporation shall review and
1712	monitor the performance of insurers under these contracts.
1713	17.19.  Must limit coverage on mobile homes or manufactured
1714	homes built prior to 1994 to actual cash value of the dwelling
1715	rather than replacement costs of the dwelling.
1716	18.20.  May provide such limits of coverage as the board
1717	determines, consistent with the requirements of this subsection.
1718	19.21.  May require commercial property to meet specified
1719	hurricane mitigation construction features as a condition of
1720	eligibility for coverage.
1721	(d)1.  All prospective employees for senior management
1722	positions, as defined by the plan of operation, are subject to
1723	background checks as a prerequisite for employment. The office
1724	shall conduct background checks on such prospective employees
1725	pursuant to ss. 624.34, 624.404(3), and 628.261.
1726	2.  On or before July 1 of each year, employees of the
1727	corporation are required to sign and submit a statement
1728	attesting that they do not have a conflict of interest, as
1729	defined in part III of chapter 112. As a condition of
1730	employment, all prospective employees are required to sign and
1731	submit to the corporation a conflict-of-interest statement.
1732	3.  Senior managers and members of the board of governors
1733	are subject to the provisions of part III of chapter 112,
1734	including, but not limited to, the code of ethics and public
1735	disclosure and reporting of financial interests, pursuant to s.
1736	112.3145. Senior managers and board members are also required to
1737	file such disclosures with the Commission on Ethics and the
1738	Office of Insurance Regulation. The executive director of the
1739	corporation or his or her designee shall notify each newly
1740	appointed and existing appointed member of the board of
1741	governors and senior managers of their duty to comply with the
1742	reporting requirements of part III of chapter 112. At least
1743	quarterly, the executive director or his or her designee shall
1744	submit to the Commission on Ethics a list of names of the senior
1745	managers and members of the board of governors who are subject
1746	to the public disclosure requirements under s. 112.3145.
1747	4.  Notwithstanding s. 112.3148 or s. 112.3149, or any
1748	other provision of law, an employee or board member may not
1749	knowingly accept, directly or indirectly, any gift or
1750	expenditure from a person or entity, or an employee or
1751	representative of such person or entity, that has a contractual
1752	relationship with the corporation or who is under consideration
1753	for a contract. An employee or board member who fails to comply
1754	with subparagraph 3. or this subparagraph is subject to
1755	penalties provided under ss. 112.317 and 112.3173.
1756	5.  Any senior manager of the corporation who is employed
1757	on or after January 1, 2007, regardless of the date of hire, who
1758	subsequently retires or terminates employment is prohibited from
1759	representing another person or entity before the corporation for
1760	2 years after retirement or termination of employment from the
1761	corporation.
1762	6.  Any senior manager employee of the corporation who is
1763	employed on or after January 1, 2007, regardless of the date of
1764	hire, who subsequently retires or terminates employment is
1765	prohibited from having any employment or contractual
1766	relationship for 2 years with an insurer that has entered into
1767	received a take-out bonus agreement with from the corporation.
1768	(j)1.  The corporation shall establish and maintain a unit
1769	or division to investigate possible fraudulent claims by
1770	insureds or by persons making claims for services or repairs
1771	against policies held by insureds; or it may contract with
1772	others to investigate possible fraudulent claims for services or
1773	repairs against policies held by the corporation pursuant to s.
1774	626.9891. The corporation must comply with reporting
1775	requirements of s. 626.9891. An employee of the corporation
1776	shall notify the corporation's Office of the Internal Auditor
1777	and the Division of Insurance Fraud within 48 hours after having
1778	information that would lead a reasonable person to suspect that
1779	fraud may have been committed by any employee of the
1780	corporation.
1781	2.  The corporation shall establish a unit or division
1782	responsible for receiving and responding to consumer complaints,
1783	which unit or division is the sole responsibility of a senior
1784	manager of the corporation.
1785	(m)1.  Rates for coverage provided by the corporation shall
1786	be actuarially sound and subject to the requirements of s.
1787	627.062, except as otherwise provided in this paragraph. The
1788	corporation shall file its recommended rates with the office at
1789	least annually. The corporation shall provide any additional
1790	information regarding the rates which the office requires. The
1791	office shall consider the recommendations of the board and issue
1792	a final order establishing the rates for the corporation within
1793	45 days after the recommended rates are filed. The corporation
1794	may not pursue an administrative challenge or judicial review of
1795	the final order of the office.
1796	2.  In addition to the rates otherwise determined pursuant
1797	to this paragraph, the corporation shall impose and collect an
1798	amount equal to the premium tax provided for in s. 624.509 to
1799	augment the financial resources of the corporation.
1800	3.  After the public hurricane loss-projection model under
1801	s. 627.06281 has been found to be accurate and reliable by the
1802	Florida Commission on Hurricane Loss Projection Methodology,
1803	that model shall serve as the minimum benchmark for determining
1804	the windstorm portion of the corporation's rates. This
1805	subparagraph does not require or allow the corporation to adopt
1806	rates lower than the rates otherwise required or allowed by this
1807	paragraph.
1808	4.  The rate filings for the corporation which were
1809	approved by the office and which took effect January 1, 2007,
1810	are rescinded, except for those rates that were lowered. As soon
1811	as possible, the corporation shall begin using the lower rates
1812	that were in effect on December 31, 2006, and shall provide
1813	refunds to policyholders who have paid higher rates as a result
1814	of that rate filing. The rates in effect on December 31, 2006,
1815	shall remain in effect for the 2007 and 2008 calendar years year
1816	except for any rate change that results in a lower rate. The
1817	next rate change that may increase rates shall take effect
1818	January 1, 2009 2008, pursuant to a new rate filing recommended
1819	by the corporation and established by the office, subject to the
1820	requirements of this paragraph.
1821	(r)1.  There shall be no liability on the part of, and no
1822	cause of action of any nature shall arise against, any
1823	assessable insurer or its agents or employees, the corporation
1824	or its agents or employees, members of the board of governors or
1825	their respective designees at a board meeting, corporation
1826	committee members, or the office or its representatives, for any
1827	action taken by them in the performance of their duties or
1828	responsibilities under this subsection. Such immunity does not
1829	apply to:
1830	a.1.  Any of the foregoing persons or entities for any
1831	willful tort;
1832	b.2.  The corporation or its producing agents for breach of
1833	any contract or agreement pertaining to insurance coverage;
1834	c.3.  The corporation with respect to issuance or payment
1835	of debt; or
1836	d.4.  Any assessable insurer with respect to any action to
1837	enforce an assessable insurer's obligations to the corporation
1838	under this subsection; or.
1839	e.  The corporation in any pending or future action for
1840	breach of contract or for benefits under a policy issued by the
1841	corporation; in any such action, the corporation shall be liable
1842	to the policyholders and beneficiaries for attorney's fees under
1843	s. 627.428.
1844	2.  The corporation shall manage its claim employees,
1845	independent adjusters, and others who handle claims to ensure
1846	they carry out the corporation's duty to its policyholders to
1847	handle claims carefully, timely, diligently, and in good faith,
1848	balanced against the corporation's duty to the state to manage
1849	its assets responsibly to minimize its assessment potential.
1850	(ff)  The office may establish a pilot program to offer
1851	optional sinkhole coverage in one or more counties or other
1852	territories of the corporation for the purpose of implementing
1853	s. 627.706, as amended by s. 30 of chapter 2007-1, Laws of
1854	Florida. Under the pilot program, the corporation is not
1855	required to issue a notice of nonrenewal to exclude sinkhole
1856	coverage upon the renewal of existing policies, but may exclude
1857	such coverage using a notice of coverage change.
1858	Section 13.  Subsection (4) of section 627.3511, Florida
1859	Statutes, is amended to read:
1860	627.3511  Depopulation of Citizens Property Insurance
1861	Corporation.--
1862	(4)  AGENT BONUS.--When the corporation enters into a
1863	contractual agreement for a take-out plan that provides a bonus
1864	to the insurer, the producing agent of record of the corporation
1865	policy is entitled to retain any unearned commission on such
1866	policy, and the insurer shall either:
1867	(a)  Pay to the producing agent of record of the
1868	association policy, for the first year, an amount that is the
1869	greater of the insurer's usual and customary commission for the
1870	type of policy written or a fee equal to the usual and customary
1871	commission of the corporation; or
1872	(b)  Offer to allow the producing agent of record of the
1873	corporation policy to continue servicing the policy for a period
1874	of not less than 1 year and offer to pay the agent the greater
1875	of the insurer's or the corporation's usual and customary
1876	commission for the type of policy written.
1877
1878	If the producing agent is unwilling or unable to accept
1879	appointment, the new insurer shall pay the agent in accordance
1880	with paragraph (a). The requirement of this subsection that the
1881	producing agent of record is entitled to retain the unearned
1882	commission on an association policy does not apply to a policy
1883	for which coverage has been provided in the association for 30
1884	days or less or for which a cancellation notice has been issued
1885	pursuant to s. 627.351(6)(c)10.11. during the first 30 days of
1886	coverage.
1887	Section 14.  Paragraph (a) of subsection (3) of section
1888	627.3515, Florida Statutes, as amended by chapter 2007-1, Laws
1889	of Florida, is amended to read:
1890	627.3515  Market assistance plan; property and casualty
1891	risks.--
1892	(3)(a)  The plan and the corporation shall develop a
1893	business plan and present it to the Financial Services
1894	Commission for approval by September 1, 2007, to provide for the
1895	implementation of an electronic database for the purpose of
1896	confirming eligibility pursuant to s. 627.351(6). The business
1897	plan may provide that authorized insurers or agents of
1898	authorized insurers may submit to the plan or the corporation in
1899	electronic form, as determined by the plan or the corporation,
1900	information determined necessary by the plan or the corporation
1901	to deny coverage to risks ineligible for coverage by the
1902	corporation. Any authorized insurer submitting such information
1903	that results in a risk being denied coverage by the corporation
1904	is required to offer coverage to the risk at its approved rates,
1905	for the coverage and premium quoted, for at least 1 year.
1906	Section 15.  Section 627.3517, Florida Statutes, is amended
1907	to read:
1908	627.3517  Consumer choice.--
1909	(1)  Except as provided in subsection (2), No provision of
1910	s. 627.351, s. 627.3511, or s. 627.3515 shall be construed to
1911	impair the right of any insurance risk apportionment plan
1912	policyholder, upon receipt of any keepout or take-out offer, to
1913	retain his or her current agent, so long as that agent is duly
1914	licensed and appointed by the insurance risk apportionment plan
1915	or otherwise authorized to place business with the insurance
1916	risk apportionment plan. This right shall not be canceled,
1917	suspended, impeded, abridged, or otherwise compromised by any
1918	rule, plan of operation, or depopulation plan, whether through
1919	keepout, take-out, midterm assumption, or any other means, of
1920	any insurance risk apportionment plan or depopulation plan,
1921	including, but not limited to, those described in s. 627.351, s.
1922	627.3511, or s. 627.3515. The commission shall adopt any rules
1923	necessary to cause any insurance risk apportionment plan or
1924	market assistance plan under such sections to demonstrate that
1925	the operations of the plan do not interfere with, promote, or
1926	allow interference with the rights created under this section.
1927	If the policyholder's current agent is unable or unwilling to be
1928	appointed with the insurer making the take-out or keepout offer,
1929	the policyholder shall not be disqualified from participation in
1930	the appropriate insurance risk apportionment plan because of an
1931	offer of coverage in the voluntary market. An offer of full
1932	property insurance coverage by the insurer currently insuring
1933	either the ex-wind or wind-only coverage on the policy to which
1934	the offer applies shall not be considered a take-out or keepout
1935	offer. Any rule, plan of operation, or plan of depopulation,
1936	through keepout, take-out, midterm assumption, or any other
1937	means, of any property insurance risk apportionment plan under
1938	s. 627.351(2) or (6) is subject to ss. 627.351(2)(b) and (6)(c)
1939	and 627.3511(4).
1940	(2)  This section does not apply during the first 10 days
1941	after a new application for coverage has been submitted to
1942	Citizens Property Insurance Corporation under s. 627.351(6),
1943	whether or not coverage is bound during this period.
1944	Section 16.  Subsection (1) of section 627.4035, Florida
1945	Statutes, as amended by chapter 2007-1, Laws of Florida, is
1946	amended to read:
1947	627.4035  Cash payment of premiums; claims.--
1948	(1)  The premiums for insurance contracts issued in this
1949	state or covering risk located in this state shall be paid in
1950	cash consisting of coins, currency, checks, or money orders or
1951	by using a debit card, credit card, automatic electronic funds
1952	transfer, or payroll deduction plan. By July 1, 2007, insurers
1953	issuing personal lines residential and commercial property
1954	policies shall provide a premium payment plan option to their
1955	policyholders which allows for a minimum of quarterly and
1956	semiannual payment of premiums. Insurers may, but are not
1957	required to, offer monthly payment plans. Insurers issuing such
1958	policies must submit their premium payment plan option to the
1959	office for approval before use.
1960	Section 17.  Paragraph (b) of subsection (2) of section
1961	627.4133, Florida Statutes, is amended, and subsection (7) is
1962	added to that section, to read:
1963	627.4133  Notice of cancellation, nonrenewal, or renewal
1964	premium.--
1965	(2)  With respect to any personal lines or commercial
1966	residential property insurance policy, including, but not
1967	limited to, any homeowner's, mobile home owner's, farmowner's,
1968	condominium association, condominium unit owner's, apartment
1969	building, or other policy covering a residential structure or
1970	its contents:
1971	(b)  The insurer shall give the named insured written
1972	notice of nonrenewal, cancellation, or termination at least 100
1973	days prior to the effective date of the nonrenewal,
1974	cancellation, or termination. However, the insurer shall give at
1975	least 100 days' written notice, or written notice by June 1,
1976	whichever is earlier, for any nonrenewal, cancellation, or
1977	termination that would be effective between June 1 and November
1978	30. The notice must include the reason or reasons for the
1979	nonrenewal, cancellation, or termination, except that:
1980	1.  When cancellation is for nonpayment of premium, at
1981	least 10 days' written notice of cancellation accompanied by the
1982	reason therefor shall be given. As used in this subparagraph,
1983	the term "nonpayment of premium" means failure of the named
1984	insured to discharge when due any of her or his obligations in
1985	connection with the payment of premiums on a policy or any
1986	installment of such premium, whether the premium is payable
1987	directly to the insurer or its agent or indirectly under any
1988	premium finance plan or extension of credit, or failure to
1989	maintain membership in an organization if such membership is a
1990	condition precedent to insurance coverage. "Nonpayment of
1991	premium" also means the failure of a financial institution to
1992	honor an insurance applicant's check after delivery to a
1993	licensed agent for payment of a premium, even if the agent has
1994	previously delivered or transferred the premium to the insurer.
1995	If a dishonored check represents the initial premium payment,
1996	the contract and all contractual obligations shall be void ab
1997	initio unless the nonpayment is cured within the earlier of 5
1998	days after actual notice by certified mail is received by the
1999	applicant or 15 days after notice is sent to the applicant by
2000	certified mail or registered mail, and if the contract is void,
2001	any premium received by the insurer from a third party shall be
2002	refunded to that party in full.
2003	2.  When such cancellation or termination occurs during the
2004	first 90 days during which the insurance is in force and the
2005	insurance is canceled or terminated for reasons other than
2006	nonpayment of premium, at least 20 days' written notice of
2007	cancellation or termination accompanied by the reason therefor
2008	shall be given except where there has been a material
2009	misstatement or misrepresentation or failure to comply with the
2010	underwriting requirements established by the insurer.
2011	3.  The requirement for providing written notice of
2012	nonrenewal by June 1 of any nonrenewal that would be effective
2013	between June 1 and November 30 does not apply to the following
2014	situations, but the insurer remains subject to the requirement
2015	to provide such notice at least 100 days prior to the effective
2016	date of nonrenewal:
2017	a.  A policy that is nonrenewed due to a revision in the
2018	coverage for sinkhole losses and catastrophic ground cover
2019	collapse pursuant to s. 627.730, as amended by s. 30 of chapter
2020	2007-1, Laws of Florida.
2021	b.  A policy that is nonrenewed by Citizens Property
2022	Insurance Corporation, pursuant to s. 627.351(6), for a policy
2023	that has been assumed by an authorized insurer offering
2024	replacement or renewal coverage to the policyholder.
2025
2026	After the policy has been in effect for 90 days, the policy
2027	shall not be canceled by the insurer except when there has been
2028	a material misstatement, a nonpayment of premium, a failure to
2029	comply with underwriting requirements established by the insurer
2030	within 90 days of the date of effectuation of coverage, or a
2031	substantial change in the risk covered by the policy or when the
2032	cancellation is for all insureds under such policies for a given
2033	class of insureds. This paragraph does not apply to individually
2034	rated risks having a policy term of less than 90 days.
2035	(7)(a)  Effective August 1, 2007, with respect to any
2036	residential property insurance policy, every notice of renewal
2037	premium must specify:
2038	1.  The dollar amounts recouped for assessments by the
2039	Florida Hurricane Catastrophe Fund, the Citizens Property
2040	Insurance Corporation, and the Florida Insurance Guaranty
2041	Association. The actual names of the entities must appear next
2042	to the dollar amounts.
2043	2.  The dollar amount of any premium increase that is due
2044	to an approved rate increase and the total dollar amount that is
2045	due to coverage changes.
2046	(b)  The Financial Services Commission may adopt rules
2047	pursuant to ss. 120.536(1) and 120.54 to implement this
2048	subsection.
2049	Section 18.  Paragraphs (a) and (c) of subsection (3) and
2050	paragraph (d) of subsection (4) of section 627.701, Florida
2051	Statutes, as amended by chapter 2007-1, Laws of Florida, are
2052	amended to read:
2053	627.701  Liability of insureds; coinsurance; deductibles.--
2054	(3)(a)  Except as otherwise provided in this subsection,
2055	prior to issuing a personal lines residential property insurance
2056	policy, the insurer must offer alternative deductible amounts
2057	applicable to hurricane losses equal to $500, 2 percent, 5
2058	percent, and 10 percent of the policy dwelling limits, unless
2059	the specific percentage deductible is less than $500. The
2060	written notice of the offer shall specify the hurricane or wind
2061	deductible to be applied in the event that the applicant or
2062	policyholder fails to affirmatively choose a hurricane
2063	deductible. The insurer must provide such policyholder with
2064	notice of the availability of the deductible amounts specified
2065	in this paragraph in a form approved by the office in
2066	conjunction with each renewal of the policy. The failure to
2067	provide such notice constitutes a violation of this code but
2068	does not affect the coverage provided under the policy.
2069	(c)  With respect to a policy covering a risk with dwelling
2070	limits of at least $100,000, but less than $250,000, the insurer
2071	may, in lieu of offering a policy with a $500 hurricane or wind
2072	deductible as required by paragraph (a), offer a policy that the
2073	insurer guarantees it will not nonrenew for reasons of reducing
2074	hurricane loss for one renewal period and that contains up to a
2075	2 percent hurricane or wind deductible as required by paragraph
2076	(a).
2077	(4)
2078	(d)1.  A personal lines residential property insurance
2079	policy covering a risk valued at less than $500,000 may not have
2080	a hurricane deductible in excess of 10 percent of the policy
2081	dwelling limits, unless the following conditions are met:
2082	a.  The policyholder must personally write and provide to
2083	the insurer the following statement in his or her own
2084	handwriting and sign his or her name, which must also be signed
2085	by every other named insured on the policy, and dated: "I do not
2086	want the insurance on my home to pay for the first (specify
2087	dollar value) of damage from hurricanes. I will pay those costs.
2088	My insurance will not."
2089	b.  If the structure insured by the policy is subject to a
2090	mortgage or lien, the policyholder must provide the insurer with
2091	a written statement from the mortgageholder or lienholder
2092	indicating that the mortgageholder or lienholder approves the
2093	policyholder electing to have the specified deductible.
2094	2.  A deductible subject to the requirements of this
2095	paragraph applies for the term of the policy and for each
2096	renewal thereafter unless the policyholder elects otherwise.
2097	Changes to the deductible percentage may be implemented only as
2098	of the date of renewal.
2099	3.  An insurer shall keep the original copy of the signed
2100	statement required by this paragraph, electronically or
2101	otherwise, and provide a copy to the policyholder providing the
2102	signed statement. A signed statement meeting the requirements of
2103	this paragraph creates a presumption that there was an informed,
2104	knowing election of coverage.
2105	4.  The commission shall adopt rules providing appropriate
2106	alternative methods for providing the statements required by
2107	this section for policyholders who have a handicapping or
2108	disabling condition that prevents them from providing a
2109	handwritten statement.
2110	Section 19.  Subsection (5) of section 627.70131, Florida
2111	Statutes, as amended by chapter 2007-1, Laws of Florida, is
2112	amended to read:
2113	627.70131  Insurer's duty to acknowledge communications
2114	regarding claims; investigation.--
2115	(5)(a)  Within 90 days after an insurer receives notice of
2116	a property insurance claim from a policyholder, the insurer
2117	shall pay or deny such claim or a portion of the claim unless
2118	the failure to pay such claim or a portion of the claim is
2119	caused by factors beyond the control of the insurer which
2120	reasonably prevent such payment. Any payment of a claim or
2121	portion of a claim paid 90 days after the insurer receives
2122	notice of the claim, or paid more than 15 days after there are
2123	no longer factors beyond the control of the insurer which
2124	reasonably prevented such payment, whichever is later, shall
2125	bear interest at the rate set forth in s. 55.03. Interest begins
2126	to accrue from the date the insurer receives notice of the
2127	claim. The provisions of this subsection may not be waived,
2128	voided, or nullified by the terms of the insurance policy. If
2129	there is a right to prejudgment interest, the insured shall
2130	select whether to receive prejudgment interest or interest under
2131	this subsection. Interest is payable when the claim or portion
2132	of the claim is paid. Failure to comply with this subsection
2133	constitutes a violation of this code. However, failure to comply
2134	with this subsection shall not form the sole basis for a private
2135	cause of action.
2136	(b)  Notwithstanding subsection (4), for purposes of this
2137	subsection, the term "claim" means any of the following:
2138	1.  A claim under an insurance policy providing residential
2139	coverage as defined in s. 627.4025(1);
2140	2.  A claim for structural or contents coverage under a
2141	commercial property insurance policy if the insured structure is
2142	10,000 square fee or less; or
2143	3.  A claim for contents coverage under a commercial
2144	tenants policy if the insured premises is 10,000 square feet or
2145	less.
2146	(c)  This subsection shall not apply to claims under an
2147	insurance policy covering nonresidential commercial structures
2148	or contents in more than one state.
2149	Section 20.  Subsections (1), (2), (3), (4), and (5) of
2150	section 627.712, Florida Statutes, as created by chapter 2007-1,
2151	Laws of Florida, are amended to read:
2152	627.712  Residential windstorm hurricane coverage required;
2153	availability of exclusions for windstorm or contents.--
2154	(1)  An insurer issuing a residential property insurance
2155	policy must provide hurricane or windstorm coverage as defined
2156	in s. 627.4025. This subsection does not apply with respect to
2157	risks that are eligible for wind-only coverage from Citizens
2158	Property Insurance Corporation under s. 627.351(6).
2159	(2)  A property An insurer that is subject to subsection
2160	(1) must make available, at the option of the policyholder, an
2161	exclusion of hurricane coverage or windstorm coverage. The
2162	coverage may be excluded only if:
2163	(a)1.  When the policyholder is a natural person, the
2164	policyholder personally writes and provides to the insurer the
2165	following statement in his or her own handwriting and signs his
2166	or her name, which must also be signed by every other named
2167	insured on the policy, and dated: "I do not want the insurance
2168	on my (home/mobile home/condominium unit) to pay for damage from
2169	windstorms or hurricanes. I will pay those costs. My insurance
2170	will not."
2171	2.  When the policyholder is other than a natural person,
2172	the policyholder provides to the insurer on the policyholder's
2173	letterhead the following statement that must be signed by the
2174	policyholder's authorized representative and dated: "(Name of
2175	entity) does not want the insurance on its (type of structure)
2176	to pay for damage from windstorms. (Name of entity) will be
2177	responsible for these costs. (Name of entity)'s insurance will
2178	not."
2179	(b)  If the structure insured by the policy is subject to a
2180	mortgage or lien, the policyholder must provide the insurer with
2181	a written statement from the mortgageholder or lienholder
2182	indicating that the mortgageholder or lienholder approves the
2183	policyholder electing to exclude windstorm coverage or hurricane
2184	coverage from his or her or its residential property insurance
2185	policy.
2186	(3)  An insurer issuing a residential property insurance
2187	policy, except for a condominium unit owner's policy or a
2188	tenant's policy, must make available, at the option of the
2189	policyholder, an exclusion of coverage for the contents. The
2190	coverage may be excluded only if the policyholder personally
2191	writes and provides to the insurer the following statement in
2192	his or her own handwriting and signs his or her signature, which
2193	must also be signed by every other named insured on the policy,
2194	and dated: "I do not want the insurance on my (home/mobile home)
2195	to pay for the costs to repair or replace any contents that are
2196	damaged. I will pay those costs. My insurance will not."
2197	(4)  An insurer shall keep the original copy of a signed
2198	statement required by this section, electronically or otherwise,
2199	and provide a copy to the policyholder providing the signed
2200	statement. A signed statement meeting the requirements of this
2201	section creates a presumption that there was an informed,
2202	knowing rejection of coverage.
2203	(5)  The exclusions authorized by this section apply for
2204	the term of the policy and for each renewal thereafter. Changes
2205	to the exclusions authorized by this section may be implemented
2206	only as of the date of renewal. The exclusions authorized by
2207	this section are valid for the term of the contract and for each
2208	renewal unless the policyholder elects otherwise.
2209	Section 21.  Subsections (4) and (5) of section 627.7277,
2210	Florida Statutes, as amended by chapter 2007-1, Laws of Florida,
2211	are amended to read:
2212	627.7277  Notice of renewal premium.--
2213	(4)  Every notice of renewal premium must specify:
2214	(a)  The dollar amounts recouped for assessments by the
2215	Florida Hurricane Catastrophe Fund, the Citizens Property
2216	Insurance Corporation, and the Florida Insurance Guaranty
2217	Association. The actual names of the entities must appear next
2218	to the dollar amounts.
2219	(b)  The dollar amount of any premium increase that is due
2220	to a rate increase and the dollar amounts that are due to
2221	coverage changes.
2222	(5)  The Financial Services Commission may adopt rules
2223	pursuant to ss. 120.536(1) and 120.54 to implement this section.
2224	Section 22.  Subsection (11) of section 631.52, Florida
2225	Statutes, is amended to read:
2226	631.52  Scope.--This part shall apply to all kinds of
2227	direct insurance, except:
2228	(11)  Self-insurance and any kind of self-insurance fund,
2229	liability pool, or risk management fund;
2230	Section 23.  Paragraph (e) of subsection (3) of section
2231	631.57, Florida Statutes, as amended by chapter 2007-1, Laws of
2232	Florida, is amended to read:
2233	631.57  Powers and duties of the association.--
2234	(3)
2235	(e)1.a.  In addition to assessments otherwise authorized in
2236	paragraph (a) and to the extent necessary to secure the funds
2237	for the account specified in s. 631.55(2)(c) for the direct
2238	payment of covered claims of insurers rendered insolvent by the
2239	effects of a hurricane homeowners' insurers and to pay the
2240	reasonable costs to administer such claims, or to retire
2241	indebtedness, including, without limitation, the principal,
2242	redemption premium, if any, and interest on, and related costs
2243	of issuance of, bonds issued under s. 631.695 and the funding of
2244	any reserves and other payments required under the bond
2245	resolution or trust indenture pursuant to which such bonds have
2246	been issued, the office, upon certification of the board of
2247	directors, shall levy emergency assessments upon insurers
2248	holding a certificate of authority. The emergency assessments
2249	payable under this paragraph by any insurer shall not exceed in
2250	any single year more than 2 percent of that insurer's direct
2251	written premiums, net of refunds, in this state during the
2252	preceding calendar year for the kinds of insurance within the
2253	account specified in s. 631.55(2)(c).
2254	b.  Any emergency assessments authorized under this
2255	paragraph shall be levied by the office upon insurers referred
2256	to in sub-subparagraph a., upon certification as to the need for
2257	such assessments by the board of directors. In the event the
2258	board of directors participates in the issuance of bonds in
2259	accordance with s. 631.695, emergency assessments shall be
2260	levied in each year that bonds issued under s. 631.695 and
2261	secured by such emergency assessments are outstanding, in such
2262	amounts up to such 2-percent limit as required in order to
2263	provide for the full and timely payment of the principal of,
2264	redemption premium, if any, and interest on, and related costs
2265	of issuance of, such bonds. The emergency assessments provided
2266	for in this paragraph are assigned and pledged to the
2267	municipality, county, or legal entity issuing bonds under s.
2268	631.695 for the benefit of the holders of such bonds, in order
2269	to enable such municipality, county, or legal entity to provide
2270	for the payment of the principal of, redemption premium, if any,
2271	and interest on such bonds, the cost of issuance of such bonds,
2272	and the funding of any reserves and other payments required
2273	under the bond resolution or trust indenture pursuant to which
2274	such bonds have been issued, without the necessity of any
2275	further action by the association, the office, or any other
2276	party. To the extent bonds are issued under s. 631.695 and the
2277	association determines to secure such bonds by a pledge of
2278	revenues received from the emergency assessments, such bonds,
2279	upon such pledge of revenues, shall be secured by and payable
2280	from the proceeds of such emergency assessments, and the
2281	proceeds of emergency assessments levied under this paragraph
2282	shall be remitted directly to and administered by the trustee or
2283	custodian appointed for such bonds.
2284	c.  Emergency assessments under this paragraph may be
2285	payable in a single payment or, at the option of the
2286	association, may be payable in 12 monthly installments with the
2287	first installment being due and payable at the end of the month
2288	after an emergency assessment is levied and subsequent
2289	installments being due not later than the end of each succeeding
2290	month.
2291	d.  If emergency assessments are imposed, the report
2292	required by s. 631.695(7) shall include an analysis of the
2293	revenues generated from the emergency assessments imposed under
2294	this paragraph.
2295	e.  If emergency assessments are imposed, the references in
2296	sub-subparagraph (1)(a)3.b. and s. 631.695(2) and (7) to
2297	assessments levied under paragraph (a) shall include emergency
2298	assessments imposed under this paragraph.
2299	2.  In order to ensure that insurers paying emergency
2300	assessments levied under this paragraph continue to charge rates
2301	that are neither inadequate nor excessive, within 90 days after
2302	being notified of such assessments, each insurer that is to be
2303	assessed pursuant to this paragraph shall submit a rate filing
2304	for coverage included within the account specified in s.
2305	631.55(2)(c) and for which rates are required to be filed under
2306	s. 627.062. If the filing reflects a rate change that, as a
2307	percentage, is equal to the difference between the rate of such
2308	assessment and the rate of the previous year's assessment under
2309	this paragraph, the filing shall consist of a certification so
2310	stating and shall be deemed approved when made. Any rate change
2311	of a different percentage shall be subject to the standards and
2312	procedures of s. 627.062.
2313	3.  In the event the board of directors participates in the
2314	issuance of bonds in accordance with s. 631.695, an annual
2315	assessment under this paragraph shall continue while the bonds
2316	issued with respect to which the assessment was imposed are
2317	outstanding, including any bonds the proceeds of which were used
2318	to refund bonds issued pursuant to s. 631.695, unless adequate
2319	provision has been made for the payment of the bonds in the
2320	documents authorizing the issuance of such bonds.
2321	4.  Emergency assessments under this paragraph are not
2322	premium and are not subject to the premium tax, to any fees, or
2323	to any commissions. An insurer is liable for all emergency
2324	assessments that the insurer collects and shall treat the
2325	failure of an insured to pay an emergency assessment as a
2326	failure to pay the premium. An insurer is not liable for
2327	uncollectible emergency assessments.
2328	Section 24.  Paragraphs (g), (h), and (i) of subsection (1)
2329	and subsections (2) and (6) of section 631.695, Florida
2330	Statutes, are amended to read:
2331	631.695  Revenue bond issuance through counties or
2332	municipalities.--
2333	(1)  The Legislature finds:
2334	(g)  To achieve the foregoing purposes, it is proper to
2335	authorize municipalities and counties of this state
2336	substantially affected by the landfall of a hurricane to issue
2337	bonds to assist the Florida Insurance Guaranty Association in
2338	expediting the handling and payment of covered claims of
2339	insolvent insurers.
2340	(h)  In order to avoid the needless and indiscriminate
2341	proliferation, duplication, and fragmentation of such assistance
2342	programs, it is in the best interests of the residents of this
2343	state to authorize municipalities and counties severely affected
2344	by a hurricane to provide for the payment of covered claims
2345	beyond their territorial limits in the implementation of such
2346	programs.
2347	(i)  It is a paramount public purpose for municipalities
2348	and counties substantially affected by the landfall of a
2349	hurricane to be able to issue bonds for the purposes described
2350	in this section. Such issuance shall provide assistance to
2351	residents of those municipalities and counties as well as to
2352	other residents of this state.
2353	(2)  The governing body of any municipality or county, the
2354	residents of which have been substantially affected by a
2355	hurricane, may issue bonds to fund an assistance program in
2356	conjunction with, and with the consent of, the Florida Insurance
2357	Guaranty Association for the purpose of paying claimants' or
2358	policyholders' covered claims, as defined in s. 631.54, arising
2359	through the insolvency of an insurer, which insolvency is
2360	determined by the Florida Insurance Guaranty Association to have
2361	been a result of a hurricane, regardless of whether the
2362	claimants or policyholders are residents of such municipality or
2363	county or the property to which the claim relates is located
2364	within or outside the territorial jurisdiction of the
2365	municipality or county. The power of a municipality or county to
2366	issue bonds, as described in this section, is in addition to any
2367	powers granted by law and may not be abrogated or restricted by
2368	any provisions in such municipality's or county's charter. A
2369	municipality or county issuing bonds for this purpose shall
2370	enter into such contracts with the Florida Insurance Guaranty
2371	Association or any entity acting on behalf of the Florida
2372	Insurance Guaranty Association as are necessary to implement the
2373	assistance program. Any bonds issued by a municipality or county
2374	or a combination thereof under this subsection shall be payable
2375	from and secured by moneys received by or on behalf of the
2376	municipality or county from assessments levied under s.
2377	631.57(3)(a) and assigned and pledged to or on behalf of the
2378	municipality or county for the benefit of the holders of the
2379	bonds in connection with the assistance program. The funds,
2380	credit, property, and taxing power of the state or any
2381	municipality or county shall not be pledged for the payment of
2382	such bonds.
2383	(6)  Two or more municipalities or counties, the residents
2384	of which have been substantially affected by a hurricane, may
2385	create a legal entity pursuant to s. 163.01(7)(g) to exercise
2386	the powers described in this section as well as those powers
2387	granted in s. 163.01(7)(g). References in this section to a
2388	municipality or county includes such legal entity.
2389	Section 25.  Section 1004.647, Florida Statutes, is created
2390	to read:
2391	1004.647  Florida Catastrophic Storm Risk Management
2392	Center.--The Florida Catastrophic Storm Risk Management Center
2393	is created at the Florida State University, College of Business,
2394	Department of Risk Management. The purpose of the center is to
2395	promote and disseminate research on issues related to
2396	catastrophic storm loss and to assist in identifying and
2397	developing education and research grant funding opportunities
2398	among higher education institutions in this state and the
2399	private sector. The purpose of the activities of the center is
2400	to support the state's ability to prepare for, respond to, and
2401	recover from catastrophic storms. The center shall:
2402	(1)  Coordinate and disseminate research efforts that are
2403	expected to have an immediate impact on policy and practices
2404	related to catastrophic storm preparedness.
2405	(2)  Coordinate and disseminate information related to
2406	catastrophic storm risk management, including, but not limited
2407	to, research and information that would benefit businesses,
2408	consumers, and public policy makers. Areas of interest may
2409	include storm forecasting, loss modeling, building construction
2410	and mitigation, and risk management strategies. Through its
2411	efforts, the center shall facilitate Florida's preparedness for
2412	and responsiveness to catastrophic storms and collaborate with
2413	other public and private institutions.
2414	(3)  Create and promote studies that enhance the
2415	educational options available to risk management and insurance
2416	students.
2417	(4)  Publish and disseminate findings.
2418	(5)  Organize and sponsor conferences, symposia, and
2419	workshops to educate consumers and policymakers.
2420	Section 26.  Effective December 31, 2008, and
2421	notwithstanding any other provision of law:
2422	(1)  A new certificate of authority for the transaction of
2423	residential property insurance may not be issued to any insurer
2424	domiciled in this state which is a wholly owned subsidiary of an
2425	insurer authorized to do business in any other state.
2426	(2)  The rate filings of any insurer domiciled in this
2427	state that is a wholly owned subsidiary of an insurer authorized
2428	to do business in any other state shall include information
2429	relating to the profits of the parent company of the insurer
2430	domiciled in this state.
2431	Section 27.  (1)  Notwithstanding section 9 of chapter
2432	2007-1, Laws of Florida, the internal design option provided in
2433	Section 1609.1.4.1, Florida Building Code, Building Volume, and
2434	Section R301.2.1.2, Florida Building Code, Residential Volume,
2435	shall remain in effect until June 1, 2007, for a building permit
2436	application made before that date.
2437	(2)  Subsection (1) shall take effect upon becoming a law
2438	and shall apply retroactively to January 25, 2007. Subsection
2439	(1) applies to any action taken with respect to a building
2440	permit affected by section 9 of chapter 2007-1, Laws of Florida,
2441	including any actions, legal or ministerial, pertaining to the
2442	issuance, revocation, or modifications of any building permit
2443	initiated or issued before, on, or after January 25, 2007, or
2444	pending as of January 25, 2007.
2445	(3)  If the retroactivity of any provision of subsection
2446	(1) or its retroactive application to any person or circumstance
2447	is held invalid, the invalidity shall not affect the
2448	retroactivity or retroactive application of other provisions of
2449	subsection (1).
2450	Section 28.  (1)  The Citizens Property Insurance
2451	Corporation Mission Review Task Force is created to analyze and
2452	compile available data and to develop a report setting forth the
2453	statutory and operational changes needed to return Citizens
2454	Property Insurance Corporation to its former role as a state-
2455	created, noncompetitive residual market mechanism that provides
2456	property insurance coverage to risks that are otherwise entitled
2457	but unable to obtain such coverage in the private insurance
2458	market. The task force shall submit a report to the Governor,
2459	the President of the Senate, and the Speaker of the House of
2460	Representatives by January 31, 2008. At a minimum, the task
2461	force shall analyze and evaluate relevant and applicable
2462	information and data and develop recommendations concerning:
2463	(a)  The nature of Citizens Property Insurance
2464	Corporation's role in providing property insurance coverage when
2465	and only if such coverage is not available from private
2466	insurers.
2467	(b)  The ability of the admitted market to offer policies
2468	to those consumers formerly insured through Citizens Property
2469	Insurance Corporation. This consideration shall include, but not
2470	be limited to, the availability of private market reinsurance
2471	and coverage through the Florida Hurricane Catastrophe Fund, the
2472	general adequacy of the admitted market's current rates, and the
2473	capacity of the industry to offer policies to former Citizens
2474	Property Insurance Corporation policyholders within existing
2475	writing ratio limitations.
2476	(c)  The appropriate relationship of rates charged by
2477	Citizens Property Insurance Corporation to rates charged by
2478	private insurers, with due consideration for the corporation's
2479	role as a noncompetitive residual market mechanism.
2480	(d)  The relationships between the exposure of Citizens
2481	Property Insurance Corporation to catastrophic hurricane losses,
2482	the corporation's history of purchasing inadequate or no
2483	reinsurance coverage, and the corporation's lack of adequate
2484	capital to meet its potential claim obligations without
2485	incurring large deficits.
2486	(e)  The adverse effects on the people and the economy of
2487	this state of the large, multiyear deficit assessments by
2488	Citizens Property Insurance Corporation that may be levied on
2489	businesses and households in this state, and steps that can be
2490	taken to reduce those effects.
2491	(f)  The operational implications of the variation in the
2492	number of policies in force over time in Citizens Property
2493	Insurance Corporation and the merits of outsourcing some or all
2494	of its operational responsibilities.
2495	(g)  Changes in the mission and operations of Citizens
2496	Property Insurance Corporation to reduce or eliminate any
2497	adverse effect such mission and operations may be having on the
2498	promotion of sound and economic growth and development of the
2499	coastal areas of this state.
2500	(2)  The task force shall be composed of 19 members as
2501	follows:
2502	(a)  Three members appointed by the Speaker of the House of
2503	Representatives.
2504	(b)  Three members appointed by the President of the
2505	Senate.
2506	(c)  Four members appointed by the Governor who are not
2507	employed by or professionally affiliated with an insurance
2508	company or a subsidiary of an insurance company, at least two of
2509	whom must be a consumer advocate or a member of a consumer
2510	advocacy organization or agency.
2511	(d)  Nine members appointed as representatives of private
2512	insurance companies as follows:
2513	1.  Two members representing two separate insurance
2514	companies in this state that each provide at least 300,000
2515	property insurance policies statewide at the time of the
2516	creation of the task force.
2517	2.  Two members representing two separate insurance
2518	companies in this state that each provide at least 100,000 but
2519	no more than 299,000 property insurance policies statewide at
2520	the time of the creation of the task force.
2521	3.  Two members representing two separate insurance
2522	companies in this state that each provide fewer than 100,000
2523	property insurance policies statewide at the time of the
2524	creation of the task force.
2525	4.  Three members appointed by the Chief Financial Officer
2526	representing insurance agents in this state, at least one of
2527	whom represents the largest property and casualty insurance
2528	agent's association in this state.
2529
2530	Of each pair of members appointed under subparagraphs 1., 2.,
2531	and 3., one shall be appointed by the President of the Senate
2532	and one by the Speaker of the House of Representatives.
2533	(3)  The task force shall conduct research, hold public
2534	meetings, receive testimony, employ consultants and
2535	administrative staff, and undertake other activities determined
2536	by its members to be necessary to complete its responsibilities.
2537	Citizens Property Insurance Corporation shall have appropriate
2538	senior staff attend task force meetings, shall respond to
2539	requests for testimony and data by the task force, and shall
2540	otherwise cooperate with the task force.
2541	(4)  A member of the task force may not delegate his or her
2542	attendance or voting power to a designee.
2543	(5)  Members of the task force shall serve without
2544	compensation but are entitled to receive reimbursement for
2545	travel and per diem as provided in s. 112.061, Florida Statutes.
2546	(6)  The appointments to the task force must be completed
2547	within 30 calendar days after the effective date of this act,
2548	and the task force must hold its initial meeting within 1 month
2549	after appointment of all members. The task force shall expire no
2550	later than 60 calendar days after submission of the report
2551	required in subsection (1).
2552	(7)  The Department of Financial Services and other
2553	agencies of this state shall supply any information, assistance,
2554	and facilities that are considered necessary to the task force
2555	to carry out its duties under this section. The department shall
2556	provide staff assistance as necessary in order to carry out the
2557	required clerical and administrative functions of the task
2558	force.
2559	Section 29.  For the 2007-2008 fiscal year, the
2560	nonrecurring sum of $600,000 is appropriated from the Insurance
2561	Regulatory Trust Fund to the Department of Financial Services
2562	for the purposes set forth in this act relating to the Citizens
2563	Property Insurance Corporation Mission Review Task Force.
2564	Section 30.  Except as otherwise expressly provided in this
2565	act, this act shall take effect upon becoming a law.
2566
2567
2568	======= T I T L E  A M E N D M E N T ==========
2569	Remove the entire title and insert:
2570	A bill to be entitled
2571	An act relating to hurricane preparedness and insurance;
2572	amending s. 163.01, F.S.; correcting a cross-reference; amending
2573	s. 215.555, F.S.; revising certain reimbursement contract
2574	requirements; deleting an expiration provision relating to
2575	obtaining coverage for liquidated insurers; delaying repeal of
2576	an exemption of medical malpractice insurance premiums from
2577	emergency assessments; revising criteria, requirements, and
2578	limitations on temporary emergency options for additional
2579	coverage under the Florida Hurricane Catastrophe Fund; amending
2580	s. 215.5595, F.S.; providing that domestic and other insurers
2581	writing only manufactured housing policies are eligible to
2582	receive a surplus note in a specified amount; revising
2583	prioritization of certain insurers in receiving funds; providing
2584	a definition; amending s. 624.407, F.S.; revising an insurer
2585	criterion for capital funds requirements for new insurers;
2586	creating s. 624.46226, F.S.; permitting two or more public
2587	housing authorities to create a self-insurance fund for
2588	specified purposes; amending s. 626.914, F.S.; revising the
2589	definition of the term "diligent effort"; amending s. 626.916,
2590	F.S.; providing requirements for insurance coverage eligible for
2591	export for residential property risks; requiring that the
2592	insured be notified that coverage may be available from Citizens
2593	Property Insurance Corporation; amending s. 626.9201, F.S.;
2594	revising requirements concerning cancellation for nonpayment of
2595	premium of policies providing coverage for property, casualty,
2596	surety, or marine insurance; defining the term "nonpayment of
2597	premium"; providing that certain contracts or contractual
2598	obligations concerning such coverage are void under specified
2599	conditions; requiring the refund of certain premiums received by
2600	an insurer; amending s. 627.0613, F.S.; limiting application of
2601	certain annual report card preparation powers of the consumer
2602	advocate to personal residential property insurers; amending s.
2603	627.062, F.S.; specifying application of certain "file and use"
2604	requirements to property insurance only; excluding certain motor
2605	vehicle coverages; providing that certain interest paid by an
2606	insurer may not be included in rate base or used to justify a
2607	rate or rate change; amending s. 627.0655, F.S.; revising
2608	criteria for certain inclusion of discounts in certain premiums;
2609	amending s. 627.351, F.S.; revising legislative findings to
2610	provide a finding that the lack of affordable property insurance
2611	threatens the public health, safety, and welfare and threatens
2612	the economic health of the state; revising provisions for
2613	determining eligibility for coverage under Citizens Property
2614	Insurance Corporation; limiting application of the term "subject
2615	lines of business" to deficit assessments; revising a provision
2616	for determining eligibility of a risk for coverage; providing
2617	requirements for determining comparable coverage; specifying the
2618	sections of ch. 112, F.S., relating to the code of ethics for
2619	political subdivisions of the state, which apply to employees,
2620	senior managers, and members of the board of the corporation;
2621	revising requirements relating to senior management employees
2622	and members of the board of governors; amending s. 627.3511,
2623	F.S.; correcting a cross-reference; amending s. 627.3515, F.S.;
2624	revising criteria for an electronic database for a business
2625	plan; amending s. 627.3517, F.S.; deleting a provision
2626	specifying nonapplication for a certain period; amending s.
2627	627.4035, F.S.; revising a premium payment plan option provision
2628	for certain insurers; amending s. 627.4133, F.S.; specifying
2629	requirements for notices of nonrenewal and renewal of property
2630	insurance policies; authorizing the Financial Services
2631	Commission to adopt rules; amending s. 627.701, F.S.; revising
2632	requirements for deductibles for certain personal lines
2633	residential property insurance policies; amending s. 627.70131,
2634	F.S.; revising provisions relating to when an insurer must pay a
2635	claim; providing conditions under which interest must be paid;
2636	providing a definition; providing for nonapplication to certain
2637	claims; amending s. 627.712, F.S.; limiting application of
2638	certain residential windstorm coverage requirements to property
2639	insurance policies; specifying separate coverage exclusion
2640	statements for policyholders that are natural persons and other
2641	than natural persons; specifying a period of application of
2642	certain exclusions; providing for implementation of changes to
2643	certain exclusions; amending s. 627.7277, F.S.; deleting certain
2644	notice of renewal premium requirements; deleting authority of
2645	the commission to adopt rules; amending s. 631.52, F.S.;
2646	expanding an exception to application to self-insurance of
2647	provisions relating to Florida Insurance Guaranty of Payments;
2648	amending s. 631.57, F.S.; revising certain emergency assessment
2649	provisions relating to insurers rendered insolvent by the
2650	effects of hurricanes; amending s. 631.695, F.S.; deleting
2651	provisions limiting application of certain revenue bond issuance
2652	authority to certain counties; creating s. 1004.647, F.S.;
2653	creating the Florida Catastrophic Storm Risk Management Center
2654	at Florida State University; providing purposes; providing
2655	responsibilities of the center; prohibiting issuance of new
2656	certificates of authority to certain insurers; requiring rate
2657	filings of certain insurers to include certain parent company
2658	profits information; providing that the internal design option
2659	of the Florida Building Code remains in effect until a specified
2660	date for a building permit application made before that date,
2661	notwithstanding provisions of ch. 2007-1, Laws of Florida;
2662	providing for effect and for retroactive application; applying
2663	the act to any actions taken with respect to a building permit
2664	affected by such prior act; creating the Citizens Property
2665	Insurance Corporation Mission Review Task Force; providing
2666	purposes; requiring a report; providing report requirements;
2667	providing for appointment of members; providing
2668	responsibilities; specifying service without compensation;
2669	providing for reimbursement of per diem and travel expenses;
2670	providing meeting requirements; requiring the corporation to
2671	assist the task force; providing for the expiration of the task
2672	force; requiring the Department of Financial Services to provide
2673	information, facilities, and assistance to the task force
2674	necessary to carry out its purposes; providing an appropriation;
2675	providing effective dates.

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