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A bill to be entitled

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An act relating to commercial property insurance; amending

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s. 215.555, F.S.; excluding nonassessable commercial

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property insurance from emergency assessments for the

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Florida Hurricane Catastrophe Fund; amending s. 627.041,

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F.S.; defining the terms "assessable commercial property

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insurance" and "nonassessable commercial property

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insurance"; amending s. 627.062, F.S.; providing rate

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standards regarding nonassessable commercial property

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insurance; providing that nonassessable commercial

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property insurance is not subject to a determination that

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the rate is excessive or unfairly discriminatory;

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providing an exception; amending s. 627.351, F.S.;

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excluding nonassessable commercial property insurance from

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the definition of "subject lines of business"; providing

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that insurers issuing nonassessable commercial property

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insurance policies are not assessable for the portion of

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the assessment from which the nonassessable commercial

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property insurance policy is exempt; creating s. 627.7031,

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F.S.; authorizing insurers offering assessable commercial

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property insurance policies to offer nonassessable

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commercial property insurance policies; authorizing an

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owner of a commercial property to purchase a nonassessable

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commercial property insurance policy if such a policy is

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offered by the insurer; requiring that an application for

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a nonassessable commercial property policy contain a

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specified disclaimer; requiring that the declarations page

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of a nonassessable commercial property policy contain a

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specified disclaimer; providing an effective date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1.  Paragraph (b) of subsection (6) of section

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215.555, Florida Statutes, is amended to read:

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     215.555  Florida Hurricane Catastrophe Fund.--

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     (6)  REVENUE BONDS.--

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     (b)  Emergency assessments.--

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     1.  If the board determines that the amount of revenue

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produced under subsection (5) is insufficient to fund the

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obligations, costs, and expenses of the fund and the corporation,

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including repayment of revenue bonds and that portion of the debt

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service coverage not met by reimbursement premiums, the board

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shall direct the Office of Insurance Regulation to levy, by

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order, an emergency assessment on direct premiums for all

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property and casualty lines of business in this state, including

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property and casualty business of surplus lines insurers

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regulated under part VIII of chapter 626, but not including any

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workers' compensation premiums, or medical malpractice premiums,

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or nonassessable commercial property insurance as defined in s.

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627.041(11). As used in this subsection, the term "property and

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casualty business" includes all lines of business identified on

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Form 2, Exhibit of Premiums and Losses, in the annual statement

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required of authorized insurers by s. 624.424 and any rule

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adopted under this section, except for those lines identified as

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accident and health insurance and except for policies written

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under the National Flood Insurance Program. The assessment shall

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be specified as a percentage of direct written premium and is

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subject to annual adjustments by the board in order to meet debt

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obligations. The same percentage shall apply to all policies in

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lines of business subject to the assessment issued or renewed

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during the 12-month period beginning on the effective date of the

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assessment.

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     2.  A premium is not subject to an annual assessment under

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this paragraph in excess of 6 percent of premium with respect to

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obligations arising out of losses attributable to any one

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contract year, and a premium is not subject to an aggregate

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annual assessment under this paragraph in excess of 10 percent of

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premium. An annual assessment under this paragraph shall continue

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as long as the revenue bonds issued with respect to which the

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assessment was imposed are outstanding, including any bonds the

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proceeds of which were used to refund the revenue bonds, unless

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adequate provision has been made for the payment of the bonds

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under the documents authorizing issuance of the bonds.

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     3.  Emergency assessments shall be collected from

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policyholders. Emergency assessments shall be remitted by

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insurers as a percentage of direct written premium for the

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preceding calendar quarter as specified in the order from the

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Office of Insurance Regulation. The office shall verify the

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accurate and timely collection and remittance of emergency

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assessments and shall report the information to the board in a

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form and at a time specified by the board. Each insurer

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collecting assessments shall provide the information with respect

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to premiums and collections as may be required by the office to

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enable the office to monitor and verify compliance with this

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paragraph.

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     4.  With respect to assessments of surplus lines premiums,

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each surplus lines agent shall collect the assessment at the same

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time as the agent collects the surplus lines tax required by s.

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626.932, and the surplus lines agent shall remit the assessment

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to the Florida Surplus Lines Service Office created by s. 626.921

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at the same time as the agent remits the surplus lines tax to the

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Florida Surplus Lines Service Office. The emergency assessment on

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each insured procuring coverage and filing under s. 626.938 shall

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be remitted by the insured to the Florida Surplus Lines Service

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Office at the time the insured pays the surplus lines tax to the

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Florida Surplus Lines Service Office. The Florida Surplus Lines

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Service Office shall remit the collected assessments to the fund

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or corporation as provided in the order levied by the Office of

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Insurance Regulation. The Florida Surplus Lines Service Office

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shall verify the proper application of such emergency assessments

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and shall assist the board in ensuring the accurate and timely

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collection and remittance of assessments as required by the

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board. The Florida Surplus Lines Service Office shall annually

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calculate the aggregate written premium on property and casualty

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business, other than workers' compensation and medical

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malpractice, procured through surplus lines agents and insureds

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procuring coverage and filing under s. 626.938 and shall report

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the information to the board in a form and at a time specified by

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the board.

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     5.  Any assessment authority not used for a particular

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contract year may be used for a subsequent contract year. If, for

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a subsequent contract year, the board determines that the amount

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of revenue produced under subsection (5) is insufficient to fund

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the obligations, costs, and expenses of the fund and the

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corporation, including repayment of revenue bonds and that

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portion of the debt service coverage not met by reimbursement

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premiums, the board shall direct the Office of Insurance

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Regulation to levy an emergency assessment up to an amount not

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exceeding the amount of unused assessment authority from a

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previous contract year or years, plus an additional 4 percent

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provided that the assessments in the aggregate do not exceed the

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limits specified in subparagraph 2.

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     6.  The assessments otherwise payable to the corporation

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under this paragraph shall be paid to the fund unless and until

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the Office of Insurance Regulation and the Florida Surplus Lines

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Service Office have received from the corporation and the fund a

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notice, which shall be conclusive and upon which they may rely

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without further inquiry, that the corporation has issued bonds

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and the fund has no agreements in effect with local governments

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under paragraph (c). On or after the date of the notice and until

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the date the corporation has no bonds outstanding, the fund shall

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have no right, title, or interest in or to the assessments,

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except as provided in the fund's agreement with the corporation.

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     7.  Emergency assessments are not premium and are not

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subject to the premium tax, to the surplus lines tax, to any

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fees, or to any commissions. An insurer is liable for all

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assessments that it collects and must treat the failure of an

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insured to pay an assessment as a failure to pay the premium. An

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insurer is not liable for uncollectible assessments.

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     8.  When an insurer is required to return an unearned

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premium, it shall also return any collected assessment

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attributable to the unearned premium. A credit adjustment to the

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collected assessment may be made by the insurer with regard to

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future remittances that are payable to the fund or corporation,

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but the insurer is not entitled to a refund.

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     9.  When a surplus lines insured or an insured who has

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procured coverage and filed under s. 626.938 is entitled to the

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return of an unearned premium, the Florida Surplus Lines Service

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Office shall provide a credit or refund to the agent or such

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insured for the collected assessment attributable to the unearned

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premium prior to remitting the emergency assessment collected to

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the fund or corporation.

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     10.  The exemption of medical malpractice insurance premiums

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from emergency assessments under this paragraph is repealed May

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31, 2010, and medical malpractice insurance premiums shall be

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subject to emergency assessments attributable to loss events

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occurring in the contract years commencing on June 1, 2010.

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     Section 2.  Subsections (10) and (11) are added to section

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627.041, Florida Statutes, to read:

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     627.041  Definitions.--As used in this part:

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     (10) "Assessable commercial property insurance" means

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insurance on commercial property of every kind, as well as every

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interest therein, whether such property is on land, water, or in

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the air, against loss or damage from any and all hazard or cause,

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and against loss consequential upon such loss or damage, other

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than noncontractual legal liability for any such loss or damage

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that is subject to the rate standards set forth in s. 627.062 and

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deficit assessments by Citizens Property Insurance Corporation

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pursuant to s. 627.351(6) or emergency assessments levied for the

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Florida Hurricane Catastrophe Fund pursuant to s. 215.555.

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Assessable commercial property insurance may contain a provision

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for accidental death or injury as part of a multiple peril

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policy.

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     (11) "Nonassessable commercial property insurance" means

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insurance on commercial property of every kind, as well as every

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interest therein, whether such property is on land, water, or in

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the air, against loss or damage from any and all hazard or cause,

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and against loss consequential upon such loss or damage, other

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than noncontractual legal liability for any such loss or damage

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that is not subject to the rate standards set forth in s.

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627.062, except as provided in s. 627.062(2)(k), or deficit

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assessments by Citizens Property Insurance Corporation pursuant

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to s. 627.351(6) or emergency assessments levied for the Florida

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Hurricane Catastrophe Fund pursuant to s. 215.555. Nonassessable

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commercial property insurance may contain a provision for

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accidental death or injury as part of a multiple peril policy.

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     Section 3.  Paragraph (k) is added to subsection (2) of

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section 627.062, Florida Statutes, to read:

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     627.062  Rate standards.--

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     (2)  As to all such classes of insurance:

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     (k)1. Notwithstanding any other provisions of this section,

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nonassessable commercial property insurance is not subject to a

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determination that the rate is excessive or unfairly

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discriminatory, except as provided in subparagraph 3.

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2. This paragraph does not apply to filings for commercial

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lines residential insurance or assessable commercial property

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insurance.

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     3. This paragraph does not affect the power of the office

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to disapprove rates as inadequate or to disapprove a rate filing

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for the use of a rating factor that is unlawful under Florida

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law.

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The provisions of this subsection shall not apply to workers'

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compensation and employer's liability insurance and to motor

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vehicle insurance.

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     Section 4.  Paragraph (b) of subsection (6) of section

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627.351, Florida Statutes, is amended to read:

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     627.351  Insurance risk apportionment plans.--

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     (6)  CITIZENS PROPERTY INSURANCE CORPORATION.--

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     (b)1.  All insurers authorized to write one or more subject

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lines of business in this state are subject to assessment by the

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corporation and, for the purposes of this subsection, are

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referred to collectively as "assessable insurers." Insurers

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writing one or more subject lines of business in this state

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pursuant to part VIII of chapter 626 are not assessable insurers,

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but insureds who procure one or more subject lines of business in

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this state pursuant to part VIII of chapter 626 are subject to

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assessment by the corporation and are referred to collectively as

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"assessable insureds." An authorized insurer's assessment

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liability shall begin on the first day of the calendar year

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following the year in which the insurer was issued a certificate

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of authority to transact insurance for subject lines of business

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in this state and shall terminate 1 year after the end of the

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first calendar year during which the insurer no longer holds a

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certificate of authority to transact insurance for subject lines

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of business in this state.

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     2.a.  All revenues, assets, liabilities, losses, and

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expenses of the corporation shall be divided into three separate

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accounts as follows:

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     (I)  A personal lines account for personal residential

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policies issued by the corporation or issued by the Residential

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Property and Casualty Joint Underwriting Association and renewed

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by the corporation that provide comprehensive, multiperil

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coverage on risks that are not located in areas eligible for

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coverage in the Florida Windstorm Underwriting Association as

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those areas were defined on January 1, 2002, and for such

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policies that do not provide coverage for the peril of wind on

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risks that are located in such areas;

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     (II)  A commercial lines account for commercial residential

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and commercial nonresidential policies issued by the corporation

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or issued by the Residential Property and Casualty Joint

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Underwriting Association and renewed by the corporation that

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provide coverage for basic property perils on risks that are not

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located in areas eligible for coverage in the Florida Windstorm

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Underwriting Association as those areas were defined on January

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1, 2002, and for such policies that do not provide coverage for

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the peril of wind on risks that are located in such areas; and

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     (III)  A high-risk account for personal residential policies

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and commercial residential and commercial nonresidential property

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policies issued by the corporation or transferred to the

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corporation that provide coverage for the peril of wind on risks

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that are located in areas eligible for coverage in the Florida

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Windstorm Underwriting Association as those areas were defined on

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January 1, 2002. Subject to the approval of a business plan by

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the Financial Services Commission and Legislative Budget

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Commission as provided in this sub-sub-subparagraph, but no

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earlier than March 31, 2007, the corporation may offer policies

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that provide multiperil coverage and the corporation shall

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continue to offer policies that provide coverage only for the

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peril of wind for risks located in areas eligible for coverage in

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the high-risk account. In issuing multiperil coverage, the

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corporation may use its approved policy forms and rates for the

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personal lines account. An applicant or insured who is eligible

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to purchase a multiperil policy from the corporation may purchase

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a multiperil policy from an authorized insurer without prejudice

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to the applicant's or insured's eligibility to prospectively

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purchase a policy that provides coverage only for the peril of

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wind from the corporation. An applicant or insured who is

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eligible for a corporation policy that provides coverage only for

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the peril of wind may elect to purchase or retain such policy and

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also purchase or retain coverage excluding wind from an

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authorized insurer without prejudice to the applicant's or

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insured's eligibility to prospectively purchase a policy that

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provides multiperil coverage from the corporation. It is the goal

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of the Legislature that there would be an overall average savings

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of 10 percent or more for a policyholder who currently has a

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wind-only policy with the corporation, and an ex-wind policy with

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a voluntary insurer or the corporation, and who then obtains a

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multiperil policy from the corporation. It is the intent of the

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Legislature that the offer of multiperil coverage in the high-

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risk account be made and implemented in a manner that does not

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adversely affect the tax-exempt status of the corporation or

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creditworthiness of or security for currently outstanding

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financing obligations or credit facilities of the high-risk

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account, the personal lines account, or the commercial lines

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account. By March 1, 2007, the corporation shall prepare and

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submit for approval by the Financial Services Commission and

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Legislative Budget Commission a report detailing the

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corporation's business plan for issuing multiperil coverage in

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the high-risk account. The business plan shall be approved or

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disapproved within 30 days after receipt, as submitted or

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modified and resubmitted by the corporation. The business plan

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must include: the impact of such multiperil coverage on the

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corporation's financial resources, the impact of such multiperil

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coverage on the corporation's tax-exempt status, the manner in

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which the corporation plans to implement the processing of

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applications and policy forms for new and existing policyholders,

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the impact of such multiperil coverage on the corporation's

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ability to deliver customer service at the high level required by

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this subsection, the ability of the corporation to process

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claims, the ability of the corporation to quote and issue

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policies, the impact of such multiperil coverage on the

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corporation's agents, the impact of such multiperil coverage on

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the corporation's existing policyholders, and the impact of such

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multiperil coverage on rates and premium. The high-risk account

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must also include quota share primary insurance under

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subparagraph (c)2. The area eligible for coverage under the high-

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risk account also includes the area within Port Canaveral, which

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is bordered on the south by the City of Cape Canaveral, bordered

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on the west by the Banana River, and bordered on the north by

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Federal Government property.

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     b.  The three separate accounts must be maintained as long

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as financing obligations entered into by the Florida Windstorm

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Underwriting Association or Residential Property and Casualty

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Joint Underwriting Association are outstanding, in accordance

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with the terms of the corresponding financing documents. When the

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financing obligations are no longer outstanding, in accordance

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with the terms of the corresponding financing documents, the

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corporation may use a single account for all revenues, assets,

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liabilities, losses, and expenses of the corporation. Consistent

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with the requirement of this subparagraph and prudent investment

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policies that minimize the cost of carrying debt, the board shall

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exercise its best efforts to retire existing debt or to obtain

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approval of necessary parties to amend the terms of existing

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debt, so as to structure the most efficient plan to consolidate

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the three separate accounts into a single account. By February 1,

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2007, the board shall submit a report to the Financial Services

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Commission, the President of the Senate, and the Speaker of the

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House of Representatives which includes an analysis of

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consolidating the accounts, the actions the board has taken to

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minimize the cost of carrying debt, and its recommendations for

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executing the most efficient plan.

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     c.  Creditors of the Residential Property and Casualty Joint

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Underwriting Association and of the accounts specified in sub-

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sub-subparagraphs a.(I) and (II) may have a claim against, and

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recourse to, the accounts referred to in sub-sub-subparagraphs

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a.(I) and (II) and shall have no claim against, or recourse to,

338

the account referred to in sub-sub-subparagraph a.(III).

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Creditors of the Florida Windstorm Underwriting Association shall

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have a claim against, and recourse to, the account referred to in

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sub-sub-subparagraph a.(III) and shall have no claim against, or

342

recourse to, the accounts referred to in sub-sub-subparagraphs

343

a.(I) and (II).

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     d.  Revenues, assets, liabilities, losses, and expenses not

345

attributable to particular accounts shall be prorated among the

346

accounts.

347

     e.  The Legislature finds that the revenues of the

348

corporation are revenues that are necessary to meet the

349

requirements set forth in documents authorizing the issuance of

350

bonds under this subsection.

351

     f.  No part of the income of the corporation may inure to

352

the benefit of any private person.

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     3.  With respect to a deficit in an account:

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     a.  When the deficit incurred in a particular calendar year

355

is not greater than 10 percent of the aggregate statewide direct

356

written premium for the subject lines of business for the prior

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calendar year, the entire deficit shall be recovered through

358

regular assessments of assessable insurers under paragraph (p)

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and assessable insureds.

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     b.  When the deficit incurred in a particular calendar year

361

exceeds 10 percent of the aggregate statewide direct written

362

premium for the subject lines of business for the prior calendar

363

year, the corporation shall levy regular assessments on

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assessable insurers under paragraph (p) and on assessable

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insureds in an amount equal to the greater of 10 percent of the

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deficit or 10 percent of the aggregate statewide direct written

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premium for the subject lines of business for the prior calendar

368

year. Any remaining deficit shall be recovered through emergency

369

assessments under sub-subparagraph d.

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     c.  Each assessable insurer's share of the amount being

371

assessed under sub-subparagraph a. or sub-subparagraph b. shall

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be in the proportion that the assessable insurer's direct written

373

premium for the subject lines of business for the year preceding

374

the assessment bears to the aggregate statewide direct written

375

premium for the subject lines of business for that year. The

376

assessment percentage applicable to each assessable insured is

377

the ratio of the amount being assessed under sub-subparagraph a.

378

or sub-subparagraph b. to the aggregate statewide direct written

379

premium for the subject lines of business for the prior year.

380

Assessments levied by the corporation on assessable insurers

381

under sub-subparagraphs a. and b. shall be paid as required by

382

the corporation's plan of operation and paragraph (p).

383

Notwithstanding any other provision of this subsection, the

384

aggregate amount of a regular assessment for a deficit incurred

385

in a particular calendar year shall be reduced by the estimated

386

amount to be received by the corporation from the Citizens

387

policyholder surcharge under subparagraph (c)10. and the amount

388

collected or estimated to be collected from the assessment on

389

Citizens policyholders pursuant to sub-subparagraph i.

390

Assessments levied by the corporation on assessable insureds

391

under sub-subparagraphs a. and b. shall be collected by the

392

surplus lines agent at the time the surplus lines agent collects

393

the surplus lines tax required by s. 626.932 and shall be paid to

394

the Florida Surplus Lines Service Office at the time the surplus

395

lines agent pays the surplus lines tax to the Florida Surplus

396

Lines Service Office. Upon receipt of regular assessments from

397

surplus lines agents, the Florida Surplus Lines Service Office

398

shall transfer the assessments directly to the corporation as

399

determined by the corporation.

400

     d.  Upon a determination by the board of governors that a

401

deficit in an account exceeds the amount that will be recovered

402

through regular assessments under sub-subparagraph a. or sub-

403

subparagraph b., the board shall levy, after verification by the

404

office, emergency assessments, for as many years as necessary to

405

cover the deficits, to be collected by assessable insurers and

406

the corporation and collected from assessable insureds upon

407

issuance or renewal of policies for subject lines of business,

408

excluding National Flood Insurance policies. The amount of the

409

emergency assessment collected in a particular year shall be a

410

uniform percentage of that year's direct written premium for

411

subject lines of business and all accounts of the corporation,

412

excluding National Flood Insurance Program policy premiums, as

413

annually determined by the board and verified by the office. The

414

office shall verify the arithmetic calculations involved in the

415

board's determination within 30 days after receipt of the

416

information on which the determination was based. Notwithstanding

417

any other provision of law, the corporation and each assessable

418

insurer that writes subject lines of business shall collect

419

emergency assessments from its policyholders without such

420

obligation being affected by any credit, limitation, exemption,

421

or deferment. Emergency assessments levied by the corporation on

422

assessable insureds shall be collected by the surplus lines agent

423

at the time the surplus lines agent collects the surplus lines

424

tax required by s. 626.932 and shall be paid to the Florida

425

Surplus Lines Service Office at the time the surplus lines agent

426

pays the surplus lines tax to the Florida Surplus Lines Service

427

Office. The emergency assessments so collected shall be

428

transferred directly to the corporation on a periodic basis as

429

determined by the corporation and shall be held by the

430

corporation solely in the applicable account. The aggregate

431

amount of emergency assessments levied for an account under this

432

sub-subparagraph in any calendar year may not exceed the greater

433

of 10 percent of the amount needed to cover the original deficit,

434

plus interest, fees, commissions, required reserves, and other

435

costs associated with financing of the original deficit, or 10

436

percent of the aggregate statewide direct written premium for

437

subject lines of business and for all accounts of the corporation

438

for the prior year, plus interest, fees, commissions, required

439

reserves, and other costs associated with financing the original

440

deficit.

441

     e.  The corporation may pledge the proceeds of assessments,

442

projected recoveries from the Florida Hurricane Catastrophe Fund,

443

other insurance and reinsurance recoverables, policyholder

444

surcharges and other surcharges, and other funds available to the

445

corporation as the source of revenue for and to secure bonds

446

issued under paragraph (p), bonds or other indebtedness issued

447

under subparagraph (c)3., or lines of credit or other financing

448

mechanisms issued or created under this subsection, or to retire

449

any other debt incurred as a result of deficits or events giving

450

rise to deficits, or in any other way that the board determines

451

will efficiently recover such deficits. The purpose of the lines

452

of credit or other financing mechanisms is to provide additional

453

resources to assist the corporation in covering claims and

454

expenses attributable to a catastrophe. As used in this

455

subsection, the term "assessments" includes regular assessments

456

under sub-subparagraph a., sub-subparagraph b., or subparagraph

457

(p)1. and emergency assessments under sub-subparagraph d.

458

Emergency assessments collected under sub-subparagraph d. are not

459

part of an insurer's rates, are not premium, and are not subject

460

to premium tax, fees, or commissions; however, failure to pay the

461

emergency assessment shall be treated as failure to pay premium.

462

The emergency assessments under sub-subparagraph d. shall

463

continue as long as any bonds issued or other indebtedness

464

incurred with respect to a deficit for which the assessment was

465

imposed remain outstanding, unless adequate provision has been

466

made for the payment of such bonds or other indebtedness pursuant

467

to the documents governing such bonds or other indebtedness.

468

     f.  As used in this subsection for purposes of any deficit

469

incurred on or after January 25, 2007, the term "subject lines of

470

business" means insurance written by assessable insurers or

471

procured by assessable insureds for all property and casualty

472

lines of business in this state, but not including workers'

473

compensation, or medical malpractice, or nonassessable commercial

474

property insurance as defined in s. 627.041(11). As used in the

475

sub-subparagraph, the term "property and casualty lines of

476

business" includes all lines of business identified on Form 2,

477

Exhibit of Premiums and Losses, in the annual statement required

478

of authorized insurers by s. 624.424 and any rule adopted under

479

this section, except for those lines identified as accident and

480

health insurance and except for policies written under the

481

National Flood Insurance Program or the Federal Crop Insurance

482

Program. For purposes of this sub-subparagraph, the term

483

"workers' compensation" includes both workers' compensation

484

insurance and excess workers' compensation insurance. Insurers

485

issuing nonassessable commercial property insurance policies are

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not assessable for the portion of the assessment from which the

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nonassessable commercial property insurance policy is exempt.

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     g.  The Florida Surplus Lines Service Office shall determine

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annually the aggregate statewide written premium in subject lines

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of business procured by assessable insureds and shall report that

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information to the corporation in a form and at a time the

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corporation specifies to ensure that the corporation can meet the

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requirements of this subsection and the corporation's financing

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obligations.

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     h.  The Florida Surplus Lines Service Office shall verify

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the proper application by surplus lines agents of assessment

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percentages for regular assessments and emergency assessments

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levied under this subparagraph on assessable insureds and shall

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assist the corporation in ensuring the accurate, timely

500

collection and payment of assessments by surplus lines agents as

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required by the corporation.

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     i.  If a deficit is incurred in any account in 2008 or

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thereafter, the board of governors shall levy an immediate

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assessment against the premium of each nonhomestead property

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policyholder in all accounts of the corporation, as a uniform

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percentage of the premium of the policy of up to 10 percent of

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such premium, which funds shall be used to offset the deficit. If

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this assessment is insufficient to eliminate the deficit, the

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board of governors shall levy an additional assessment against

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all policyholders of the corporation, which shall be collected at

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the time of issuance or renewal of a policy, as a uniform

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percentage of the premium for the policy of up to 10 percent of

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such premium, which funds shall be used to further offset the

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deficit.

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     j.  The board of governors shall maintain separate

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accounting records that consolidate data for nonhomestead

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properties, including, but not limited to, number of policies,

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insured values, premiums written, and losses. The board of

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governors shall annually report to the office and the Legislature

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a summary of such data.

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     Section 5.  Section 627.7031, Florida Statutes, is created

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to read:

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     627.7031 Commercial property insurance.--

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     (1) Insurers offering assessable commercial property

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insurance policies as defined in s. 627.041(10) may offer

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nonassessable commercial property insurance policies as defined

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in s. 627.041(11).

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     (2) An owner of commercial property may purchase a

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nonassessable commercial property insurance policy if such a

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policy is offered by the insurer.

531

     (3) The application for a nonassessable commercial property

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insurance policy shall contain the following disclaimer printed

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in at least 12-point boldfaced type:

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535

THIS APPLICATION IS FOR A COMMERCIAL PROPERTY POLICY THAT IS

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SUBJECT TO LIMITED RATE REGULATION REQUIREMENTS OF FLORIDA LAW

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AND IS NOT SUBJECT TO DEFICIT ASSESSMENTS BY CITIZENS PROPERTY

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INSURANCE CORPORATION OR THE FLORIDA HURRICANE CATASTROPHE FUND.

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A COMMERCIAL PROPERTY POLICY THAT IS SUBJECT TO RATE REGULATION

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REQUIREMENTS AND DEFICIT ASSESSMENT BY CITIZENS PROPERTY

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INSURANCE CORPORATION AND THE FLORIDA HURRICANE CATASTROPHE FUND

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IS AVAILABLE. PLEASE DISCUSS YOUR POLICY OPTIONS WITH YOUR

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INSURANCE AGENT.

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545

     (4) The declarations page of a nonassessable commercial

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property insurance policy shall contain the following disclaimer

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printed in at least 12-point boldfaced type:

548

549

THIS COMMERCIAL PROPERTY POLICY IS SUBJECT TO LIMITED RATE

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REGULATION REQUIREMENTS OF FLORIDA LAW AND IS NOT SUBJECT TO

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DEFICIT ASSESSMENTS BY CITIZENS PROPERTY INSURANCE CORPORATION OR

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THE FLORIDA HURRICANE CATASTROPHE FUND. A COMMERCIAL PROPERTY

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POLICY THAT IS SUBJECT TO RATE REGULATION REQUIREMENTS AND

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DEFICIT ASSESSMENT BY CITIZENS PROPERTY INSURANCE CORPORATION AND

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THE FLORIDA HURRICANE CATASTROPHE FUND IS AVAILABLE. PLEASE

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DISCUSS YOUR POLICY OPTIONS WITH YOUR INSURANCE AGENT.

557

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     Section 6.  This act shall take effect July 1, 2008.