Amendment
Bill No. CS/CS/SB 2860

Amendment No. 439287

CHAMBER ACTION
Senate		House
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1	Representatives Ross and Reagan offered the following:
2
3	Amendment (with title amendment)
4	Remove everything after the enacting clause and insert:
5
6	Section 1.  Section 215.5595, Florida Statutes, is amended
7	to read:
8	215.5595  Insurance Capital Build-Up Incentive Program.--
9	(1)  Upon entering the 2008 2006 hurricane season, the
10	Legislature finds that:
11	(a)  The losses in this state Florida from eight hurricanes
12	in 2004 and 2005 have seriously strained the resources of both
13	the voluntary insurance market and the public sector mechanisms
14	of Citizens Property Insurance Corporation and the Florida
15	Hurricane Catastrophe Fund.
16	(b)  Private reinsurance is much less available and at a
17	significantly greater cost to residential property insurers as
18	compared to 1 year ago, particularly for amounts below the
19	insurer's retention or retained losses that must be paid before
20	reimbursement is provided by the Florida Hurricane Catastrophe
21	Fund.
22	(c)  The Office of Insurance Regulation has reported that
23	the insolvency of certain insurers may be imminent.
24	(d)  Hurricane forecast experts predict that the 2006
25	hurricane season will be an active hurricane season and that the
26	Atlantic and Gulf Coast regions face an active hurricane cycle
27	of 10 to 20 years or longer.
28	(b)(e)  Citizens Property Insurance Corporation has over
29	1.2 million policies in force, has the largest market share of
30	any insurer writing residential property insurer in the state,
31	and faces the threat of a catastrophic loss that The number of
32	cancellations or nonrenewals of residential property insurance
33	policies is expected to increase and the number of new
34	residential policies written in the voluntary market are likely
35	to decrease, causing increased policy growth and exposure to the
36	state insurer of last resort, Citizens Property Insurance
37	Corporation, and threatening to increase the deficit of the
38	corporation, currently estimated to be over $1.7 billion. This
39	deficit must be funded by assessments against insurers and
40	policyholders, unless otherwise funded by the state. The program
41	has a substantial positive effect on the depopulation efforts of
42	Citizens Property Insurance Corporation since companies
43	participating in the program have removed over 199,000 policies
44	from the corporation. Companies participating in the program
45	have issued a significant number of new policies, thereby
46	keeping an estimated 480,000 new policies out of the
47	corporation.
48	(c)(f)  Policyholders are subject to high increased
49	premiums and assessments that are increasingly making such
50	coverage unaffordable and that may force policyholders to sell
51	their homes and even leave the state.
52	(d)(g)  The increased risk to the public sector and private
53	sector continues to pose poses a serious threat to the economy
54	of this state, particularly the building and financing of
55	residential structures, and existing mortgages may be placed in
56	default.
57	(h)  The losses from 2004 and 2005, combined with the
58	expectation that the increase in hurricane activity will
59	continue for the foreseeable future, have caused both insurers
60	and reinsurers to limit the capital they are willing to commit
61	to covering the hurricane risk in Florida; attracting new
62	capital to the Florida market is a critical priority; and
63	providing a low-cost source of capital would enable insurers to
64	write additional residential property insurance coverage and act
65	to mitigate premium increases.
66	(e)(i)  Appropriating state funds to be exchanged for used
67	as surplus notes issued by for residential property insurers,
68	under conditions requiring the insurer to contribute additional
69	private sector capital and to write a minimum level of premiums
70	for residential hurricane coverage, is a valid and important
71	public purpose.
72	(f)  Extending the Insurance Capital Build-up Incentive
73	Program will provide an incentive for investors to commit
74	additional capital to Florida's residential insurance market.
75	(2)  The purpose of this section is to provide funds in
76	exchange for surplus notes to be issued by to new or existing
77	authorized residential property insurers under the Insurance
78	Capital Build-Up Incentive Program administered by the State
79	Board of Administration, under the following conditions:
80	(a)  The amount of state funds provided in exchange for a
81	the surplus note to for any insurer or insurer group, other than
82	an insurer writing only manufactured housing policies, may not
83	exceed $25 million or 20 percent of the total amount of funds
84	appropriated for available under the program, whichever is
85	greater. The amount of the surplus note for any insurer or
86	insurer group writing residential property insurance covering
87	only manufactured housing may not exceed $7 million.
88	(b)  On or after April 1, 2008, the insurer must contribute
89	an amount of new capital to its surplus which is at least equal
90	to the amount of the surplus note and must apply to the board by
91	September 1, 2008 July 1, 2006. If an insurer applies after
92	September 1, 2008 July 1, 2006, but before June 1, 2009 2007,
93	the amount of the surplus note is limited to one-half of the new
94	capital that the insurer contributes to its surplus, except that
95	an insurer writing only manufactured housing policies is
96	eligible to receive a surplus note of up to $7 million. For
97	purposes of this section, new capital must be in the form of
98	cash or cash equivalents as specified in s. 625.012(1).
99	(c)  The insurer's surplus, new capital, and the surplus
100	note must total at least $50 million, except for insurers
101	writing residential property insurance covering only
102	manufactured housing. The insurer's surplus, new capital, and
103	the surplus note must total at least $14 million for insurers
104	writing only residential property insurance covering
105	manufactured housing policies as provided in paragraph (a).
106	(d)  The insurer must commit to increase its writings of
107	residential property insurance, including the peril of wind, and
108	to meet meeting a minimum writing ratio of net written premium
109	to surplus of at least 1:1 for the first calendar year after
110	receiving the state funds or renegotiation of the surplus note,
111	1.5:1 for the second calendar year, and 2:1 for the remaining
112	term of the surplus note. Alternatively, the insurer must meet a
113	minimum writing ratio of gross written premium to surplus of at
114	least 3:1 for the first calendar year after receiving the state
115	funds or renegotiation of the surplus note, 4.5:1 for the second
116	calendar year, and 6:1 for the remaining term of the surplus
117	note. The writing ratios, which shall be determined by the
118	Office of Insurance Regulation and certified quarterly to the
119	board. For this purpose, the term "premium" "net written
120	premium" means net written premium for residential property
121	insurance in this state Florida, including the peril of wind,
122	and "surplus" means the new capital and surplus note refers to
123	the entire surplus of the insurer. An insurer that makes an
124	initial application after July 1, 2008, must also commit to
125	writing at least 15 percent of its net or gross written premium
126	for new policies, not including renewal premiums, for policies
127	taken out of Citizens Property Insurance Corporation, during
128	each of the first 3 years after receiving the state funds in
129	exchange for the surplus note, which shall be determined by the
130	Office of Insurance Regulation and certified annually to the
131	board. The office may determine that an insurer meets the
132	requirement for taking policies out the corporation, by written
133	notice to the board, upon a finding that the insurer made offers
134	of coverage to policyholders of the corporation which would have
135	resulted in meeting this requirement had the policyholders
136	accepted the offer. The insurer must also commit to maintaining
137	a level of surplus and reinsurance sufficient to cover in excess
138	of its 1-in-100 year probable maximum loss, as determined by a
139	hurricane loss model accepted by the Florida Commission on
140	Hurricane Loss Projection Methodology, which shall be determined
141	by the Office of Insurance Regulation and certified annually to
142	the board. If the board determines that the insurer has failed
143	to meet any of the requirements of this paragraph required ratio
144	is not maintained during the term of the surplus note, the board
145	may increase the interest rate, accelerate the repayment of
146	interest and principal, or shorten the term of the surplus note,
147	subject to approval by the Commissioner of Insurance of payments
148	by the insurer of principal and interest as provided in
149	paragraph (f).
150	(e)  If the requirements of this section are met, the board
151	may approve an application by an insurer for funds in exchange
152	for issuance of a surplus note, unless the board determines that
153	the financial condition of the insurer and its business plan for
154	writing residential property insurance in Florida places an
155	unreasonably high level of financial risk to the state of
156	nonpayment in full of the interest and principal. The board
157	shall consult with the Office of Insurance Regulation and may
158	contract with independent financial and insurance consultants in
159	making this determination.
160	(f)  The surplus note must be repayable to the state with a
161	term of 20 years. The surplus note shall accrue interest on the
162	unpaid principal balance at a rate equivalent to the 10-year
163	U.S. Treasury Bond rate, require the payment only of interest
164	during the first 3 years, and include such other terms as
165	approved by the board. The board may charge late fees up to 5
166	percent for late payments or other late remittances. Payment of
167	principal, or interest, or late fees by the insurer on the
168	surplus note must be approved by the Commissioner of Insurance,
169	who shall approve such payment unless the commissioner
170	determines that such payment will substantially impair the
171	financial condition of the insurer. If such a determination is
172	made, the commissioner shall approve such payment that will not
173	substantially impair the financial condition of the insurer.
174	(g)  The total amount of funds available for the program is
175	limited to the amount appropriated by the Legislature for this
176	purpose. If the amount of surplus notes requested by insurers
177	exceeds the amount of funds available, the board may prioritize
178	insurers that are eligible and approved, with priority for
179	funding given to insurers writing only manufactured housing
180	policies, regardless of the date of application, based on the
181	financial strength of the insurer, the viability of its proposed
182	business plan for writing additional residential property
183	insurance in the state, and the effect on competition in the
184	residential property insurance market. Between insurers writing
185	residential property insurance covering manufactured housing,
186	priority shall be given to the insurer writing the highest
187	percentage of its policies covering manufactured housing.
188	(h)  The board may allocate portions of the funds available
189	for the program and establish dates for insurers to apply for
190	surplus notes from such allocation which are earlier than the
191	dates established in paragraph (b).
192	(h)(i)  Notwithstanding paragraph (d), a newly formed
193	manufactured housing insurer that is eligible for a surplus note
194	under this section shall meet the premium to surplus ratio
195	provisions of s. 624.4095.
196	(i)(j)  As used in this section, "an insurer writing only
197	manufactured housing policies" includes:
198	1.  A Florida domiciled insurer that begins writing
199	personal lines residential manufactured housing policies in
200	Florida after March 1, 2007, and that removes a minimum of
201	50,000 policies from Citizens Property Insurance Corporation
202	without accepting a bonus, provided at least 25 percent of its
203	policies cover manufactured housing. Such an insurer may count
204	any funds above the minimum capital and surplus requirement that
205	were contributed into the insurer after March 1, 2007, as new
206	capital under this section.
207	2.  A Florida domiciled insurer that writes at least 40
208	percent of its policies covering manufactured housing in
209	Florida.
210	(3)  As used in this section, the term:
211	(a)  "Board" means the State Board of Administration.
212	(b)  "Program" means the Insurance Capital Build-Up
213	Incentive Program established by this section.
214	(4)  The state funds provided to the insurer in exchange
215	for the A surplus note provided to an insurer pursuant to this
216	section are is considered borrowed surplus an asset of the
217	insurer pursuant to s. 628.401 s. 625.012.
218	(5)  If an insurer that receives funds in exchange for
219	issuance of a surplus note pursuant to this section is rendered
220	insolvent, the state is a class 3 creditor pursuant to s.
221	631.271 for the unpaid principal and interest on the surplus
222	note.
223	(6)  The board shall adopt rules prescribing the
224	procedures, administration, and criteria for approving the
225	applications of insurers to receive funds in exchange for
226	issuance of surplus notes pursuant to this section, which may be
227	adopted pursuant to the procedures for emergency rules of
228	chapter 120. Otherwise, actions and determinations by the board
229	pursuant to this section are exempt from chapter 120.
230	(7)  The board shall invest and reinvest the funds
231	appropriated for the program in accordance with s. 215.47 and
232	consistent with board policy.
233	(8)  Costs and fees incurred by the board in administering
234	this program, including fees for investment services, shall be
235	paid from funds appropriated by the Legislature for this
236	program, but are limited to 1 percent of the amount
237	appropriated.
238	(9)  The board shall submit a report to the President of
239	the Senate and the Speaker of the House of Representatives by
240	February 1 of each year as to the results of the program and
241	each insurer's compliance with the terms of its surplus note.
242	(10)  The amendments to this section enacted in 2008 do not
243	affect the terms or conditions of the surplus notes that were
244	approved prior to January 1, 2008. However, the board may
245	renegotiate the terms of any surplus note issued by an insurer
246	prior to January 2008 under this program upon the agreement of
247	the insurer and the board and consistent with the requirements
248	of this section as amended in 2008.
249	Section 2.  Subsection (6) is added to section 624.3161,
250	Florida Statutes, to read:
251	624.3161  Market conduct examinations.--
252	(6)  Based on the findings of a market conduct examination
253	that an insurer has exhibited a pattern or practice of willful
254	violations of an unfair insurance trade practice related to
255	claims-handling which caused harm to policyholders, as
256	prohibited by s. 626.9541(1)(i), the office, after a proceeding
257	under ss. 120.569 and 120.57(1), may require an insurer to file
258	its claims-handling practices and procedures related to that
259	line of insurance with the office for review and inspection, to
260	be held by the office for the following 36-month period. Such
261	claims-handling practices and procedures are public records and
262	are not trade secrets or otherwise exempt from the provisions of
263	s. 119.07(1). As used in this section, "claims-handling
264	practices and procedures" are any policies, guidelines, rules,
265	protocols, standard operating procedures, instructions, or
266	directives that govern or guide how and the manner in which an
267	insured's claims for benefits under any policy will be
268	processed.
269	Section 3.  Subsections (2) and (3) of section 624.4211,
270	Florida Statutes, are amended to read:
271	624.4211  Administrative fine in lieu of suspension or
272	revocation.--
273	(2)  With respect to any nonwillful violation, such fine
274	may shall not exceed $5,000 $2,500 per violation. In no event
275	shall such fine exceed an aggregate amount of $20,000 $10,000
276	for all nonwillful violations arising out of the same action. If
277	When an insurer discovers a nonwillful violation, the insurer
278	shall correct the violation and, if restitution is due, make
279	restitution to all affected persons. Such restitution shall
280	include interest at 12 percent per year from either the date of
281	the violation or the date of inception of the affected person's
282	policy, at the insurer's option. The restitution may be a credit
283	against future premiums due provided that the interest
284	accumulates shall accumulate until the premiums are due. If the
285	amount of restitution due to any person is $50 or more and the
286	insurer wishes to credit it against future premiums, it shall
287	notify such person that she or he may receive a check instead of
288	a credit. If the credit is on a policy that which is not
289	renewed, the insurer shall pay the restitution to the person to
290	whom it is due.
291	(3)  With respect to any knowing and willful violation of a
292	lawful order or rule of the office or commission or a provision
293	of this code, the office may impose a fine upon the insurer in
294	an amount not to exceed $40,000 $20,000 for each such violation.
295	In no event shall such fine exceed an aggregate amount of
296	$200,000 $100,000 for all knowing and willful violations arising
297	out of the same action. In addition to such fines, the such
298	insurer shall make restitution when due in accordance with the
299	provisions of subsection (2).
300	Section 4.  Section 624.4213, Florida Statutes, is created
301	to read:
302	624.4213  Trade secret documents.--
303	(1)  If any person who is required to submit documents or
304	other information to the office or department pursuant to the
305	Insurance Code or by rule or order of the office, department, or
306	commission claims that such submission contains a trade secret,
307	such person may file with the office or department a notice of
308	trade secret as provided in this section. Failure to do so
309	constitutes a waiver of any claim by such person that the
310	document or information is a trade secret.
311	(a)  Each page of such document or specific portion of a
312	document claimed to be a trade secret must be clearly marked as
313	"trade secret."
314	(b)  All material marked as a trade secret must be
315	separated from all non-trade secret material, such as being
316	submitted in a separate envelope clearly marked as "trade
317	secret."
318	(c)  In submitting a notice of trade secret to the office
319	or department, the submitting party must include an affidavit
320	certifying under oath to the truth of the following statements
321	concerning all documents or information that are claimed to be
322	trade secrets:
323	1.  [I consider/My company considers] this information a
324	trade secret that has value and provides an advantage or an
325	opportunity to obtain an advantage over those who do not know or
326	use it.
327	2.  [I have/My company has] taken measures to prevent the
328	disclosure of the information to anyone other that those who
329	have been selected to have access for limited purposes, and [I
330	intend/my company intends] to continue to take such measures.
331	3.  The information is not, and has not been, reasonably
332	obtainable without [my/our] consent by other persons by use of
333	legitimate means.
334	4.  The information is not publicly available elsewhere.
335	(2)  If the office or department receives a public-records
336	request for a document or information that is marked and
337	certified as a trade secret, the office or department shall
338	promptly notify the person that certified the document as a
339	trade secret. The notice shall inform such person that he or she
340	or his or her company has 30 days following receipt of such
341	notice to file an action in circuit court seeking a
342	determination whether the document in question contains trade
343	secrets and an order barring public disclosure of the document.
344	If that person or company files an action within 30 days after
345	receipt of notice of the public-records request, the office or
346	department may not release the documents pending the outcome of
347	the legal action. The failure to file an action within 30 days
348	constitutes a waiver of any claim of confidentiality and the
349	office or department shall release the document as requested.
350	(3)  The office or department may disclose a trade secret,
351	together with the claim that it is a trade secret, to an officer
352	or employee of another governmental agency whose use of the
353	trade secret is within the scope of his or her employment.
354	Section 5. Section 624.4305, Florida Statutes, is created
355	to read:
356	624.4305  Nonrenewal of residential property insurance
357	policies.--Any insurer planning to nonrenew more than 10,000
358	residential property insurance policies in this state within a
359	12-month period shall give notice in writing to the Office of
360	Insurance Regulation for informational purposes 90 days before
361	the issuance of any notices of nonrenewal. The notice provided
362	to the office must set forth the insurer's reasons for such
363	action, the effective dates of nonrenewal, and any arrangements
364	made for other insurers to offer coverage to affected
365	policyholders.
366	Section 6.  Subsection (2) of section 626.9521, Florida
367	Statutes, is amended to read:
368	626.9521  Unfair methods of competition and unfair or
369	deceptive acts or practices prohibited; penalties.--
370	(2)  Any person who violates any provision of this part
371	shall be subject to a fine in an amount not greater than $5,000
372	$2,500 for each nonwillful violation and not greater than
373	$40,000 $20,000 for each willful violation. Fines under this
374	subsection imposed against an insurer may not exceed an
375	aggregate amount of $20,000 $10,000 for all nonwillful
376	violations arising out of the same action or an aggregate amount
377	of $200,000 $100,000 for all willful violations arising out of
378	the same action. The fines authorized by this subsection may be
379	imposed in addition to any other applicable penalty.
380	Section 7.  Section 627.0612, Florida Statutes, is amended
381	to read:
382	627.0612  Administrative proceedings in rating
383	determinations.--
384	(1)  In any proceeding to determine whether rates, rating
385	plans, or other matters governed by this part comply with the
386	law, the appellate court shall set aside a final order of the
387	office if the office has violated s. 120.57(1)(k) by
388	substituting its findings of fact for findings of an
389	administrative law judge which were supported by competent
390	substantial evidence.
391	(2)  In an administrative hearing to determine whether an
392	insurer's rates, rating schedules, rating manuals, premium
393	credits, discount schedules, surcharge schedules, or changes
394	thereto, for property insurance comply with the law, in addition
395	to any other findings of fact, findings on the following matters
396	shall be considered findings of fact:
397	(a)  Whether a factor or factors used in a rate filing or
398	applied by the office is consistent with standard actuarial
399	techniques or practices or are otherwise based on reasonable
400	actuarial judgment.
401	(b)  Whether a factor for underwriting profit and
402	contingencies is reasonable or excessive.
403	(c)  Whether the cost of reinsurance is reasonable or
404	excessive.
405	(d)  Whether a factor or factors used in a rate filing or
406	applied by the office demonstrate that a rate is excessive,
407	inadequate or unfairly discriminatory.
408	(3)  In an administrative hearing to determine whether an
409	insurer's rates, rating schedules, rating manuals, premium
410	credits, discount schedules, surcharge schedules, or changes
411	thereto, for property insurance comply with the law, an order
412	may be entered that approves, modifies, or rejects the requested
413	change.  An order modifying the requested rate change shall
414	recommend such change as is supported by the record in the case.
415	Section 8.  Paragraphs (a), (b), and (g) of subsection
416	(2),subsection (6), and paragraph (a) of subsection (9) of
417	section 627.062, Florida Statutes, are amended to read:
418	627.062  Rate standards.--
419	(2)  As to all such classes of insurance:
420	(a)  Insurers or rating organizations shall establish and
421	use rates, rating schedules, or rating manuals to allow the
422	insurer a reasonable rate of return on such classes of insurance
423	written in this state. A copy of rates, rating schedules, rating
424	manuals, premium credits or discount schedules, and surcharge
425	schedules, and changes thereto, shall be filed with the office
426	under one of the following procedures except as provided in
427	subparagraph 3.:
428	1.  If the filing is made at least 90 days before the
429	proposed effective date and the filing is not implemented during
430	the office's review of the filing and any proceeding and
431	judicial review, then such filing shall be considered a "file
432	and use" filing. In such case, the office shall finalize its
433	review by issuance of a notice of intent to approve or a notice
434	of intent to disapprove within 90 days after receipt of the
435	filing. The notice of intent to approve and the notice of intent
436	to disapprove constitute agency action for purposes of the
437	Administrative Procedure Act. Requests for supporting
438	information, requests for mathematical or mechanical
439	corrections, or notification to the insurer by the office of its
440	preliminary findings shall not toll the 90-day period during any
441	such proceedings and subsequent judicial review. The rate shall
442	be deemed approved if the office does not issue a notice of
443	intent to approve or a notice of intent to disapprove within 90
444	days after receipt of the filing.
445	2.  If the filing is not made in accordance with the
446	provisions of subparagraph 1., such filing shall be made as soon
447	as practicable, but no later than 30 days after the effective
448	date, and shall be considered a "use and file" filing. An
449	insurer making a "use and file" filing is potentially subject to
450	an order by the office to return to policyholders portions of
451	rates found to be excessive, as provided in paragraph (h).
452	3.  For all filings made or submitted after January 25,
453	2007, but before December 31, 2008, an insurer seeking a rate
454	that is greater than the rate most recently approved by the
455	office shall make a "file and use" filing. This subparagraph
456	applies to property insurance only. For purposes of this
457	subparagraph, motor vehicle collision and comprehensive
458	coverages are not considered to be property coverages.
459	(b)  Upon receiving a rate filing, the office shall review
460	the rate filing to determine if a rate is excessive, inadequate,
461	or unfairly discriminatory. In making that determination, the
462	office shall, in accordance with generally accepted and
463	reasonable actuarial techniques, consider the following factors:
464	1.  Past and prospective loss experience within and without
465	this state.
466	2.  Past and prospective expenses.
467	3.  The degree of competition among insurers for the risk
468	insured.
469	4.  Investment income reasonably expected by the insurer,
470	consistent with the insurer's investment practices, from
471	investable premiums anticipated in the filing, plus any other
472	expected income from currently invested assets representing the
473	amount expected on unearned premium reserves and loss reserves.
474	The commission may adopt rules using utilizing reasonable
475	techniques of actuarial science and economics to specify the
476	manner in which insurers shall calculate investment income
477	attributable to such classes of insurance written in this state
478	and the manner in which such investment income shall be used to
479	calculate in the calculation of insurance rates. Such manner
480	shall contemplate allowances for an underwriting profit factor
481	and full consideration of investment income which produce a
482	reasonable rate of return; however, investment income from
483	invested surplus may shall not be considered.
484	5.  The reasonableness of the judgment reflected in the
485	filing.
486	6.  Dividends, savings, or unabsorbed premium deposits
487	allowed or returned to Florida policyholders, members, or
488	subscribers.
489	7.  The adequacy of loss reserves.
490	8.  The cost of reinsurance. The office shall not
491	disapprove a rate as excessive solely due to the insurer having
492	obtained catastrophic reinsurance to cover the insurer's
493	estimated 250-year probable maximum loss or any lower level of
494	loss.
495	9.  Trend factors, including trends in actual losses per
496	insured unit for the insurer making the filing.
497	10.  Conflagration and catastrophe hazards, if applicable.
498	11.  Projected hurricane losses, if applicable, which must
499	be estimated using a model or method found to be acceptable or
500	reliable by the Florida Commission on Hurricane Loss Projection
501	Methodology, and as further provided in s. 627.0628.
502	12.11.  A reasonable margin for underwriting profit and
503	contingencies. For that portion of the rate covering the risk of
504	hurricanes and other catastrophic losses for which the insurer
505	has not purchased reinsurance and has exposed its capital and
506	surplus to such risk, the office must approve a rating factor
507	that provides the insurer a reasonable rate of return that is
508	commensurate with such risk.
509	13.12.  The cost of medical services, if applicable.
510	14.13.  Other relevant factors which impact upon the
511	frequency or severity of claims or upon expenses.
512	(g)  The office may at any time review a rate, rating
513	schedule, rating manual, or rate change; the pertinent records
514	of the insurer; and market conditions. If the office finds on a
515	preliminary basis that a rate may be excessive, inadequate, or
516	unfairly discriminatory, the office shall initiate proceedings
517	to disapprove the rate and shall so notify the insurer. However,
518	the office may not disapprove as excessive any rate for which it
519	has given final approval or which has been deemed approved for a
520	period of 1 year after the effective date of the filing unless
521	the office finds that a material misrepresentation or material
522	error was made by the insurer or was contained in the filing.
523	Upon being so notified, the insurer or rating organization
524	shall, within 60 days, file with the office all information
525	which, in the belief of the insurer or organization, proves the
526	reasonableness, adequacy, and fairness of the rate or rate
527	change. The office shall issue a notice of intent to approve or
528	a notice of intent to disapprove pursuant to the procedures of
529	paragraph (a) within 90 days after receipt of the insurer's
530	initial response. In such instances and in any administrative
531	proceeding relating to the legality of the rate, the insurer or
532	rating organization shall carry the burden of proof by a
533	preponderance of the evidence to show that the rate is not
534	excessive, inadequate, or unfairly discriminatory. After the
535	office notifies an insurer that a rate may be excessive,
536	inadequate, or unfairly discriminatory, unless the office
537	withdraws the notification, the insurer shall not alter the rate
538	except to conform with the office's notice until the earlier of
539	120 days after the date the notification was provided or 180
540	days after the date of the implementation of the rate. The
541	office may, subject to chapter 120, disapprove without the 60-
542	day notification any rate increase filed by an insurer within
543	the prohibited time period or during the time that the legality
544	of the increased rate is being contested.
545
546	The provisions of this subsection shall not apply to workers'
547	compensation and employer's liability insurance and to motor
548	vehicle insurance.
549	(6)(a)  If an insurer requests an administrative hearing
550	pursuant to s. 120.57 related to a rate filing under this
551	section, the director of the Division of Administrative Hearings
552	shall expedite the hearing and assign an administrative law
553	judge who shall commence the hearing within 30 days after the
554	receipt of the formal request and shall enter a recommended
555	order within 30 days after the hearing or within 30 days after
556	receipt of the hearing transcript by the administrative law
557	judge, whichever is later. Each party shall be allowed 10 days
558	in which to submit written exceptions to the recommended order.
559	The office shall enter a final order within 30 days after the
560	entry of the recommended order. The provisions of this paragraph
561	may be waived upon stipulation of all parties.
562	(b)  Upon entry of a final order, the insurer may request a
563	expedited appellate review pursuant to the Florida Rules of
564	Appellate Procedure. It is the intent of the Legislature that
565	the First District Court of Appeal grant an insurer's request
566	for an expedited appellate review.
567	(c)(a)  After any action with respect to a rate filing that
568	constitutes agency action for purposes of the Administrative
569	Procedure Act, except for a rate filing for medical malpractice,
570	an insurer may, in lieu of demanding a hearing under s. 120.57,
571	require arbitration of the rate filing. However, the arbitration
572	option provision in this subsection does not apply to a rate
573	filing that is made on or after the effective date of this act
574	until January 1, 2010 2009. Arbitration shall be conducted by a
575	board of arbitrators consisting of an arbitrator selected by the
576	office, an arbitrator selected by the insurer, and an arbitrator
577	selected jointly by the other two arbitrators. Each arbitrator
578	must be certified by the American Arbitration Association. A
579	decision is valid only upon the affirmative vote of at least two
580	of the arbitrators. No arbitrator may be an employee of any
581	insurance regulator or regulatory body or of any insurer,
582	regardless of whether or not the employing insurer does business
583	in this state. The office and the insurer must treat the
584	decision of the arbitrators as the final approval of a rate
585	filing. Costs of arbitration shall be paid by the insurer.
586	(d)(b)  Arbitration under this subsection shall be
587	conducted pursuant to the procedures specified in ss. 682.06-
588	682.10. Either party may apply to the circuit court to vacate or
589	modify the decision pursuant to s. 682.13 or s. 682.14. The
590	commission shall adopt rules for arbitration under this
591	subsection, which rules may not be inconsistent with the
592	arbitration rules of the American Arbitration Association as of
593	January 1, 1996.
594	(e)(c)  Upon initiation of the arbitration process, the
595	insurer waives all rights to challenge the action of the office
596	under the Administrative Procedure Act or any other provision of
597	law; however, such rights are restored to the insurer if the
598	arbitrators fail to render a decision within 90 days after
599	initiation of the arbitration process.
600	(9)(a)  Effective March 1, 2007, The chief executive
601	officer or chief financial officer of a property insurer and the
602	chief actuary of a property insurer must certify under oath and
603	subject to the penalty of perjury, on a form approved by the
604	commission, the following information, which must accompany a
605	rate filing:
606	1.  The signing officer and actuary have reviewed the rate
607	filing;
608	2.  Based on the signing officer's and actuary's knowledge,
609	the rate filing does not contain any untrue statement of a
610	material fact or omit to state a material fact necessary in
611	order to make the statements made, in light of the circumstances
612	under which such statements were made, not misleading;
613	3.  Based on the signing officer's and actuary's knowledge,
614	the information and other factors described in paragraph (2)(b),
615	including, but not limited to, investment income, fairly present
616	in all material respects the basis of the rate filing for the
617	periods presented in the filing; and
618	4.  Based on the signing officer's and actuary's knowledge,
619	the rate filing reflects all premium savings that are reasonably
620	expected to result from legislative enactments and are in
621	accordance with generally accepted and reasonable actuarial
622	techniques.
623	Section 9.  Paragraph (c) of subsection (1) and paragraph
624	(c) of subsection (3) of section 627.0628, Florida Statutes, are
625	amended, and paragraph (e) is added to subsection (1) of that
626	section, to read:
627	627.0628  Florida Commission on Hurricane Loss Projection
628	Methodology; public records exemption; public meetings
629	exemption.--
630	(1)  LEGISLATIVE FINDINGS AND INTENT.--
631	(c)  It is the intent of the Legislature to create the
632	Florida Commission on Hurricane Loss Projection Methodology as a
633	panel of experts to provide the most actuarially sophisticated
634	guidelines and standards for projection of hurricane losses
635	possible, given the current state of actuarial science. It is
636	the further intent of the Legislature that such standards and
637	guidelines must be used by the State Board of Administration in
638	developing reimbursement premium rates for the Florida Hurricane
639	Catastrophe Fund, and, subject to paragraph (3)(c), must may be
640	used by insurers in rate filings under s. 627.062 unless the way
641	in which such standards and guidelines were applied by the
642	insurer was erroneous, as shown by a preponderance of the
643	evidence.
644	(e)  The Legislature finds that the authority to take final
645	agency action with respect to insurance ratemaking is vested in
646	the Office of Insurance Regulation and the Financial Services
647	Commission, and that the processes, standards, and guidelines of
648	the Florida Commission on Hurricane Loss Projection Methodology
649	do not constitute final agency action or statements of general
650	applicability that implement, interpret, or prescribe law or
651	policy; accordingly, chapter 120 does not apply to the
652	processes, standards, and guidelines of the Florida Commission
653	on Hurricane Loss Projection Methodology.
654	(3)  ADOPTION AND EFFECT OF STANDARDS AND GUIDELINES.--
655	(c)  With respect to a rate filing under s. 627.062, an
656	insurer must may employ and may not modify or adjust actuarial
657	methods, principles, standards, models, or output ranges found
658	by the commission to be accurate or reliable in determining to
659	determine hurricane loss factors for use in a rate filing and in
660	determining probable maximum loss levels for reinsurance costs
661	included in a rate filing under s. 627.062; except as provided
662	in s. 627.062(2)(b)12., the use of any other model is reasonable
663	if the insurer provides justification that establishes by a
664	preponderance of the evidence that such use is reasonable and
665	consistent with actuarial standards of practice. Such findings
666	and factors are admissible and relevant in consideration of a
667	rate filing by the office or in any arbitration or
668	administrative or judicial review only if the office and the
669	consumer advocate appointed pursuant to s. 627.0613 have access
670	to all of the assumptions and factors that were used in
671	developing the actuarial methods, principles, standards, models,
672	or output ranges, and are not precluded from disclosing such
673	information in a rate proceeding. In any rate hearing under s.
674	120.57 or in any arbitration proceeding under s. 627.062(6), the
675	hearing officer, judge, or arbitration panel may determine
676	whether the office and the consumer advocate were provided with
677	access to all of the assumptions and factors that were used in
678	developing the actuarial methods, principles, standards, models,
679	or output ranges and to determine their admissibility.
680	Section 10.  Subsection (1) of section 627.0629, Florida
681	Statutes, is amended to read:
682	627.0629  Residential property insurance; rate filings.--
683	(1)(a)  It is the intent of the Legislature that insurers
684	must provide savings to consumers who install or implement
685	windstorm damage mitigation techniques, alterations, or
686	solutions to their properties to prevent windstorm losses. A
687	rate filing for residential property insurance must include
688	actuarially reasonable discounts, credits, or other rate
689	differentials, or appropriate reductions in deductibles, for
690	properties on which fixtures or construction techniques
691	demonstrated to reduce the amount of loss in a windstorm have
692	been installed or implemented. The fixtures or construction
693	techniques shall include, but not be limited to, fixtures or
694	construction techniques which enhance roof strength, roof
695	covering performance, roof-to-wall strength, wall-to-floor-to-
696	foundation strength, opening protection, and window, door, and
697	skylight strength. Credits, discounts, or other rate
698	differentials, or appropriate reductions in deductibles, for
699	fixtures and construction techniques which meet the minimum
700	requirements of the Florida Building Code must be included in
701	the rate filing. All insurance companies must make a rate filing
702	which includes the credits, discounts, or other rate
703	differentials or reductions in deductibles by February 28, 2003.
704	By July 1, 2007, the office shall reevaluate the discounts,
705	credits, other rate differentials, and appropriate reductions in
706	deductibles for fixtures and construction techniques that meet
707	the minimum requirements of the Florida Building Code, based
708	upon actual experience or any other loss relativity studies
709	available to the office. The office shall determine the
710	discounts, credits, other rate differentials, and appropriate
711	reductions in deductibles that reflect the full actuarial value
712	of such revaluation, which may be used by insurers in rate
713	filings.
714	(b)  By February 1, 2011, the Office of Insurance
715	Regulation, in consultation with the Department of Financial
716	Services and the Department of Community Affairs, shall develop
717	and make publicly available a proposed method for insurers to
718	establish discounts, credits, or other rate differentials for
719	hurricane mitigation measures which directly correlate to the
720	numerical rating assigned to a structure pursuant to the uniform
721	home grading scale adopted by the Financial Services Commission
722	pursuant to s. 215.55865, including any proposed changes to the
723	uniform home grading scale. By October 1, 2011, the commission
724	shall adopt rules requiring insurers to make rate filings for
725	residential property insurance which revise insurers' discounts,
726	credits, or other rate differentials for hurricane mitigation
727	measures so that such rate differentials correlate directly to
728	the uniform home grading scale. The rules may include such
729	changes to the uniform home grading scale as the commission
730	determines are necessary, and may specify the minimum required
731	discounts, credits, or other rate differentials. Such rate
732	differentials must be consistent with generally accepted
733	actuarial principles and wind-loss mitigation studies. The rules
734	shall allow a period of at least 2 years after the effective
735	date of the revised mitigation discounts, credits, or other rate
736	differentials for a property owner to obtain an inspection or
737	otherwise qualify for the revised credit, during which time the
738	insurer shall continue to apply the mitigation credit that was
739	applied immediately prior to the effective date of the revised
740	credit.
741	Section 11.  Paragraphs (a), (b), (c), (m), (p), (w), (dd),
742	and (ee) of subsection (6) of section 627.351, Florida Statutes,
743	are amended, and a new paragraph (ff) is added to that
744	subsection, to read:
745	627.351  Insurance risk apportionment plans.--
746	(6)  CITIZENS PROPERTY INSURANCE CORPORATION.--
747	(a)1.  It is the public purpose of this subsection to
748	ensure the existence of an orderly market for property insurance
749	for Floridians and Florida businesses. The Legislature finds
750	that private insurers are unwilling or unable to provide
751	affordable property insurance coverage in this state to the
752	extent sought and needed. The absence of affordable property
753	insurance threatens the public health, safety, and welfare and
754	likewise threatens the economic health of the state. The state
755	therefore has a compelling public interest and a public purpose
756	to assist in assuring that property in the state is insured and
757	that it is insured at affordable rates so as to facilitate the
758	remediation, reconstruction, and replacement of damaged or
759	destroyed property in order to reduce or avoid the negative
760	effects otherwise resulting to the public health, safety, and
761	welfare, to the economy of the state, and to the revenues of the
762	state and local governments which are needed to provide for the
763	public welfare. It is necessary, therefore, to provide
764	affordable property insurance to applicants who are in good
765	faith entitled to procure insurance through the voluntary market
766	but are unable to do so. The Legislature intends by this
767	subsection that affordable property insurance be provided and
768	that it continue to be provided, as long as necessary, through
769	Citizens Property Insurance Corporation, a government entity
770	that is an integral part of the state, and that is not a private
771	insurance company. To that end, Citizens Property Insurance
772	Corporation shall strive to increase the availability of
773	affordable property insurance in this state, while achieving
774	efficiencies and economies, and while providing service to
775	policyholders, applicants, and agents which is no less than the
776	quality generally provided in the voluntary market, for the
777	achievement of the foregoing public purposes. Because it is
778	essential for this government entity to have the maximum
779	financial resources to pay claims following a catastrophic
780	hurricane, it is the intent of the Legislature that Citizens
781	Property Insurance Corporation continue to be an integral part
782	of the state and that the income of the corporation be exempt
783	from federal income taxation and that interest on the debt
784	obligations issued by the corporation be exempt from federal
785	income taxation.
786	2.  The Residential Property and Casualty Joint
787	Underwriting Association originally created by this statute
788	shall be known, as of July 1, 2002, as the Citizens Property
789	Insurance Corporation. The corporation shall provide insurance
790	for residential and commercial property, for applicants who are
791	in good faith entitled, but are unable, to procure insurance
792	through the voluntary market. The corporation shall operate
793	pursuant to a plan of operation approved by order of the
794	Financial Services Commission. The plan is subject to continuous
795	review by the commission. The commission may, by order, withdraw
796	approval of all or part of a plan if the commission determines
797	that conditions have changed since approval was granted and that
798	the purposes of the plan require changes in the plan. The
799	corporation shall continue to operate pursuant to the plan of
800	operation approved by the Office of Insurance Regulation until
801	October 1, 2006. For the purposes of this subsection,
802	residential coverage includes both personal lines residential
803	coverage, which consists of the type of coverage provided by
804	homeowner's, mobile home owner's, dwelling, tenant's,
805	condominium unit owner's, and similar policies, and commercial
806	lines residential coverage, which consists of the type of
807	coverage provided by condominium association, apartment
808	building, and similar policies.
809	3.  For the purposes of this subsection, the term
810	"homestead property" means:
811	a.  Property that has been granted a homestead exemption
812	under chapter 196;
813	b.  Property for which the owner has a current, written
814	lease with a renter for a term of at least 7 months and for
815	which the dwelling is insured by the corporation for $200,000 or
816	less;
817	c.  An owner-occupied mobile home or manufactured home, as
818	defined in s. 320.01, which is permanently affixed to real
819	property, is owned by a Florida resident, and has been granted a
820	homestead exemption under chapter 196 or, if the owner does not
821	own the real property, the owner certifies that the mobile home
822	or manufactured home is his or her principal place of residence;
823	d.  Tenant's coverage;
824	e.  Commercial lines residential property; or
825	f.  Any county, district, or municipal hospital; a hospital
826	licensed by any not-for-profit corporation qualified under s.
827	501(c)(3) of the United States Internal Revenue Code; or a
828	continuing care retirement community that is certified under
829	chapter 651 and that receives an exemption from ad valorem taxes
830	under chapter 196.
831	4.  For the purposes of this subsection, the term
832	"nonhomestead property" means property that is not homestead
833	property.
834	3.5.  Effective January 1, 2009, a personal lines
835	residential structure that has a dwelling replacement cost of $2
836	$1 million or more, or a single condominium unit that has a
837	combined dwelling and content replacement cost of $2 $1 million
838	or more is not eligible for coverage by the corporation. Such
839	dwellings insured by the corporation on December 31, 2008, may
840	continue to be covered by the corporation until the end of the
841	policy term. However, such dwellings that are insured by the
842	corporation and become ineligible for coverage due to the
843	provisions of this subparagraph may reapply and obtain coverage
844	in the high-risk account and be considered "nonhomestead
845	property" if the property owner provides the corporation with a
846	sworn affidavit from one or more insurance agents, on a form
847	provided by the corporation, stating that the agents have made
848	their best efforts to obtain coverage and that the property has
849	been rejected for coverage by at least one authorized insurer
850	and at least three surplus lines insurers. If such conditions
851	are met, the dwelling may be insured by the corporation for up
852	to 3 years, after which time the dwelling is ineligible for
853	coverage. The office shall approve the method used by the
854	corporation for valuing the dwelling replacement cost for the
855	purposes of this subparagraph. If a policyholder is insured by
856	the corporation prior to being determined to be ineligible
857	pursuant to this subparagraph and such policyholder files a
858	lawsuit challenging the determination, the policyholder may
859	remain insured by the corporation until the conclusion of the
860	litigation.
861	6.  For properties constructed on or after January 1, 2009,
862	the corporation may not insure any property located within 2,500
863	feet landward of the coastal construction control line created
864	pursuant to s. 161.053 unless the property meets the
865	requirements of the code-plus building standards developed by
866	the Florida Building Commission.
867	4.7.  It is the intent of the Legislature that
868	policyholders, applicants, and agents of the corporation receive
869	service and treatment of the highest possible level but never
870	less than that generally provided in the voluntary market. It
871	also is intended that the corporation be held to service
872	standards no less than those applied to insurers in the
873	voluntary market by the office with respect to responsiveness,
874	timeliness, customer courtesy, and overall dealings with
875	policyholders, applicants, or agents of the corporation.
876	5.8.  Effective January 1, 2009, a personal lines
877	residential structure that is located in the "wind-borne debris
878	region," as defined in s. 1609.2, International Building Code
879	(2006), and that has an insured value on the structure of
880	$750,000 or more is not eligible for coverage by the corporation
881	unless the structure has opening protections as required under
882	the Florida Building Code for a newly constructed residential
883	structure in that area. A residential structure shall be deemed
884	to comply with the requirements of this subparagraph if it has
885	shutters or opening protections on all openings and if such
886	opening protections complied with the Florida Building Code at
887	the time they were installed.
888	(b)1.  All insurers authorized to write one or more subject
889	lines of business in this state are subject to assessment by the
890	corporation and, for the purposes of this subsection, are
891	referred to collectively as "assessable insurers." Insurers
892	writing one or more subject lines of business in this state
893	pursuant to part VIII of chapter 626 are not assessable
894	insurers, but insureds who procure one or more subject lines of
895	business in this state pursuant to part VIII of chapter 626 are
896	subject to assessment by the corporation and are referred to
897	collectively as "assessable insureds." An authorized insurer's
898	assessment liability shall begin on the first day of the
899	calendar year following the year in which the insurer was issued
900	a certificate of authority to transact insurance for subject
901	lines of business in this state and shall terminate 1 year after
902	the end of the first calendar year during which the insurer no
903	longer holds a certificate of authority to transact insurance
904	for subject lines of business in this state.
905	2.a.  All revenues, assets, liabilities, losses, and
906	expenses of the corporation shall be divided into three separate
907	accounts as follows:
908	(I)  A personal lines account for personal residential
909	policies issued by the corporation or issued by the Residential
910	Property and Casualty Joint Underwriting Association and renewed
911	by the corporation that provide comprehensive, multiperil
912	coverage on risks that are not located in areas eligible for
913	coverage in the Florida Windstorm Underwriting Association as
914	those areas were defined on January 1, 2002, and for such
915	policies that do not provide coverage for the peril of wind on
916	risks that are located in such areas;
917	(II)  A commercial lines account for commercial residential
918	and commercial nonresidential policies issued by the corporation
919	or issued by the Residential Property and Casualty Joint
920	Underwriting Association and renewed by the corporation that
921	provide coverage for basic property perils on risks that are not
922	located in areas eligible for coverage in the Florida Windstorm
923	Underwriting Association as those areas were defined on January
924	1, 2002, and for such policies that do not provide coverage for
925	the peril of wind on risks that are located in such areas; and
926	(III)  A high-risk account for personal residential
927	policies and commercial residential and commercial
928	nonresidential property policies issued by the corporation or
929	transferred to the corporation that provide coverage for the
930	peril of wind on risks that are located in areas eligible for
931	coverage in the Florida Windstorm Underwriting Association as
932	those areas were defined on January 1, 2002. Subject to the
933	approval of a business plan by the Financial Services Commission
934	and Legislative Budget Commission as provided in this sub-sub-
935	subparagraph, but no earlier than March 31, 2007, The
936	corporation may offer policies that provide multiperil coverage
937	and the corporation shall continue to offer policies that
938	provide coverage only for the peril of wind for risks located in
939	areas eligible for coverage in the high-risk account. In issuing
940	multiperil coverage, the corporation may use its approved policy
941	forms and rates for the personal lines account. An applicant or
942	insured who is eligible to purchase a multiperil policy from the
943	corporation may purchase a multiperil policy from an authorized
944	insurer without prejudice to the applicant's or insured's
945	eligibility to prospectively purchase a policy that provides
946	coverage only for the peril of wind from the corporation. An
947	applicant or insured who is eligible for a corporation policy
948	that provides coverage only for the peril of wind may elect to
949	purchase or retain such policy and also purchase or retain
950	coverage excluding wind from an authorized insurer without
951	prejudice to the applicant's or insured's eligibility to
952	prospectively purchase a policy that provides multiperil
953	coverage from the corporation. It is the goal of the Legislature
954	that there would be an overall average savings of 10 percent or
955	more for a policyholder who currently has a wind-only policy
956	with the corporation, and an ex-wind policy with a voluntary
957	insurer or the corporation, and who then obtains a multiperil
958	policy from the corporation. It is the intent of the Legislature
959	that the offer of multiperil coverage in the high-risk account
960	be made and implemented in a manner that does not adversely
961	affect the tax-exempt status of the corporation or
962	creditworthiness of or security for currently outstanding
963	financing obligations or credit facilities of the high-risk
964	account, the personal lines account, or the commercial lines
965	account. By March 1, 2007, the corporation shall prepare and
966	submit for approval by the Financial Services Commission and
967	Legislative Budget Commission a report detailing the
968	corporation's business plan for issuing multiperil coverage in
969	the high-risk account. The business plan shall be approved or
970	disapproved within 30 days after receipt, as submitted or
971	modified and resubmitted by the corporation. The business plan
972	must include: the impact of such multiperil coverage on the
973	corporation's financial resources, the impact of such multiperil
974	coverage on the corporation's tax-exempt status, the manner in
975	which the corporation plans to implement the processing of
976	applications and policy forms for new and existing
977	policyholders, the impact of such multiperil coverage on the
978	corporation's ability to deliver customer service at the high
979	level required by this subsection, the ability of the
980	corporation to process claims, the ability of the corporation to
981	quote and issue policies, the impact of such multiperil coverage
982	on the corporation's agents, the impact of such multiperil
983	coverage on the corporation's existing policyholders, and the
984	impact of such multiperil coverage on rates and premium. The
985	high-risk account must also include quota share primary
986	insurance under subparagraph (c)2. The area eligible for
987	coverage under the high-risk account also includes the area
988	within Port Canaveral, which is bordered on the south by the
989	City of Cape Canaveral, bordered on the west by the Banana
990	River, and bordered on the north by Federal Government property.
991	b.  The three separate accounts must be maintained as long
992	as financing obligations entered into by the Florida Windstorm
993	Underwriting Association or Residential Property and Casualty
994	Joint Underwriting Association are outstanding, in accordance
995	with the terms of the corresponding financing documents. When
996	the financing obligations are no longer outstanding, in
997	accordance with the terms of the corresponding financing
998	documents, the corporation may use a single account for all
999	revenues, assets, liabilities, losses, and expenses of the
1000	corporation. Consistent with the requirement of this
1001	subparagraph and prudent investment policies that minimize the
1002	cost of carrying debt, the board shall exercise its best efforts
1003	to retire existing debt or to obtain approval of necessary
1004	parties to amend the terms of existing debt, so as to structure
1005	the most efficient plan to consolidate the three separate
1006	accounts into a single account. By February 1, 2007, the board
1007	shall submit a report to the Financial Services Commission, the
1008	President of the Senate, and the Speaker of the House of
1009	Representatives which includes an analysis of consolidating the
1010	accounts, the actions the board has taken to minimize the cost
1011	of carrying debt, and its recommendations for executing the most
1012	efficient plan.
1013	c.  Creditors of the Residential Property and Casualty
1014	Joint Underwriting Association and of the accounts specified in
1015	sub-sub-subparagraphs a.(I) and (II) may have a claim against,
1016	and recourse to, the accounts referred to in sub-sub-
1017	subparagraphs a.(I) and (II) and shall have no claim against, or
1018	recourse to, the account referred to in sub-sub-subparagraph
1019	a.(III). Creditors of the Florida Windstorm Underwriting
1020	Association shall have a claim against, and recourse to, the
1021	account referred to in sub-sub-subparagraph a.(III) and shall
1022	have no claim against, or recourse to, the accounts referred to
1023	in sub-sub-subparagraphs a.(I) and (II).
1024	d.  Revenues, assets, liabilities, losses, and expenses not
1025	attributable to particular accounts shall be prorated among the
1026	accounts.
1027	e.  The Legislature finds that the revenues of the
1028	corporation are revenues that are necessary to meet the
1029	requirements set forth in documents authorizing the issuance of
1030	bonds under this subsection.
1031	f.  No part of the income of the corporation may inure to
1032	the benefit of any private person.
1033	3.  With respect to a deficit in an account:
1034	a.  After accounting for the Citizens policyholder
1035	surcharge imposed under sub-subparagraph i., when the remaining
1036	projected deficit incurred in a particular calendar year is not
1037	greater than 6 10 percent of the aggregate statewide direct
1038	written premium for the subject lines of business for the prior
1039	calendar year, the entire deficit shall be recovered through
1040	regular assessments of assessable insurers under paragraph (p)
1041	and assessable insureds.
1042	b.  After accounting for the Citizens policyholder
1043	surcharge imposed under sub-subparagraph i., when the remaining
1044	projected deficit incurred in a particular calendar year exceeds
1045	6 10 percent of the aggregate statewide direct written premium
1046	for the subject lines of business for the prior calendar year,
1047	the corporation shall levy regular assessments on assessable
1048	insurers under paragraph (p) and on assessable insureds in an
1049	amount equal to the greater of 6 10 percent of the deficit or 6
1050	10 percent of the aggregate statewide direct written premium for
1051	the subject lines of business for the prior calendar year. Any
1052	remaining deficit shall be recovered through emergency
1053	assessments under sub-subparagraph d.
1054	c.  Each assessable insurer's share of the amount being
1055	assessed under sub-subparagraph a. or sub-subparagraph b. shall
1056	be in the proportion that the assessable insurer's direct
1057	written premium for the subject lines of business for the year
1058	preceding the assessment bears to the aggregate statewide direct
1059	written premium for the subject lines of business for that year.
1060	The assessment percentage applicable to each assessable insured
1061	is the ratio of the amount being assessed under sub-subparagraph
1062	a. or sub-subparagraph b. to the aggregate statewide direct
1063	written premium for the subject lines of business for the prior
1064	year. Assessments levied by the corporation on assessable
1065	insurers under sub-subparagraphs a. and b. shall be paid as
1066	required by the corporation's plan of operation and paragraph
1067	(p). notwithstanding any other provision of this subsection, the
1068	aggregate amount of a regular assessment for a deficit incurred
1069	in a particular calendar year shall be reduced by the estimated
1070	amount to be received by the corporation from the Citizens
1071	policyholder surcharge under subparagraph (c)10. and the amount
1072	collected or estimated to be collected from the assessment on
1073	Citizens policyholders pursuant to sub-subparagraph i.
1074	Assessments levied by the corporation on assessable insureds
1075	under sub-subparagraphs a. and b. shall be collected by the
1076	surplus lines agent at the time the surplus lines agent collects
1077	the surplus lines tax required by s. 626.932 and shall be paid
1078	to the Florida Surplus Lines Service Office at the time the
1079	surplus lines agent pays the surplus lines tax to the Florida
1080	Surplus Lines Service Office. Upon receipt of regular
1081	assessments from surplus lines agents, the Florida Surplus Lines
1082	Service Office shall transfer the assessments directly to the
1083	corporation as determined by the corporation.
1084	d.  Upon a determination by the board of governors that a
1085	deficit in an account exceeds the amount that will be recovered
1086	through regular assessments under sub-subparagraph a. or sub-
1087	subparagraph b., plus the amount that is expected to be
1088	recovered through surcharges under sub-subparagraph i., as to
1089	the remaining projected deficit the board shall levy, after
1090	verification by the office, emergency assessments, for as many
1091	years as necessary to cover the deficits, to be collected by
1092	assessable insurers and the corporation and collected from
1093	assessable insureds upon issuance or renewal of policies for
1094	subject lines of business, excluding National Flood Insurance
1095	policies. The amount of the emergency assessment collected in a
1096	particular year shall be a uniform percentage of that year's
1097	direct written premium for subject lines of business and all
1098	accounts of the corporation, excluding National Flood Insurance
1099	Program policy premiums, as annually determined by the board and
1100	verified by the office. The office shall verify the arithmetic
1101	calculations involved in the board's determination within 30
1102	days after receipt of the information on which the determination
1103	was based. Notwithstanding any other provision of law, the
1104	corporation and each assessable insurer that writes subject
1105	lines of business shall collect emergency assessments from its
1106	policyholders without such obligation being affected by any
1107	credit, limitation, exemption, or deferment. Emergency
1108	assessments levied by the corporation on assessable insureds
1109	shall be collected by the surplus lines agent at the time the
1110	surplus lines agent collects the surplus lines tax required by
1111	s. 626.932 and shall be paid to the Florida Surplus Lines
1112	Service Office at the time the surplus lines agent pays the
1113	surplus lines tax to the Florida Surplus Lines Service Office.
1114	The emergency assessments so collected shall be transferred
1115	directly to the corporation on a periodic basis as determined by
1116	the corporation and shall be held by the corporation solely in
1117	the applicable account. The aggregate amount of emergency
1118	assessments levied for an account under this sub-subparagraph in
1119	any calendar year may, at the discretion of the board of
1120	governors, be less than but may not exceed the greater of 10
1121	percent of the amount needed to cover the original deficit, plus
1122	interest, fees, commissions, required reserves, and other costs
1123	associated with financing of the original deficit, or 10 percent
1124	of the aggregate statewide direct written premium for subject
1125	lines of business and for all accounts of the corporation for
1126	the prior year, plus interest, fees, commissions, required
1127	reserves, and other costs associated with financing the original
1128	deficit.
1129	e.  The corporation may pledge the proceeds of assessments,
1130	projected recoveries from the Florida Hurricane Catastrophe
1131	Fund, other insurance and reinsurance recoverables, policyholder
1132	surcharges and other surcharges, and other funds available to
1133	the corporation as the source of revenue for and to secure bonds
1134	issued under paragraph (p), bonds or other indebtedness issued
1135	under subparagraph (c)3., or lines of credit or other financing
1136	mechanisms issued or created under this subsection, or to retire
1137	any other debt incurred as a result of deficits or events giving
1138	rise to deficits, or in any other way that the board determines
1139	will efficiently recover such deficits. The purpose of the lines
1140	of credit or other financing mechanisms is to provide additional
1141	resources to assist the corporation in covering claims and
1142	expenses attributable to a catastrophe. As used in this
1143	subsection, the term "assessments" includes regular assessments
1144	under sub-subparagraph a., sub-subparagraph b., or subparagraph
1145	(p)1. and emergency assessments under sub-subparagraph d.
1146	Emergency assessments collected under sub-subparagraph d. are
1147	not part of an insurer's rates, are not premium, and are not
1148	subject to premium tax, fees, or commissions; however, failure
1149	to pay the emergency assessment shall be treated as failure to
1150	pay premium. The emergency assessments under sub-subparagraph d.
1151	shall continue as long as any bonds issued or other indebtedness
1152	incurred with respect to a deficit for which the assessment was
1153	imposed remain outstanding, unless adequate provision has been
1154	made for the payment of such bonds or other indebtedness
1155	pursuant to the documents governing such bonds or other
1156	indebtedness.
1157	f.  As used in this subsection for purposes of any deficit
1158	incurred on or after January 25, 2007, the term "subject lines
1159	of business" means insurance written by assessable insurers or
1160	procured by assessable insureds for all property and casualty
1161	lines of business in this state, but not including workers'
1162	compensation or medical malpractice. As used in the sub-
1163	subparagraph, the term "property and casualty lines of business"
1164	includes all lines of business identified on Form 2, Exhibit of
1165	Premiums and Losses, in the annual statement required of
1166	authorized insurers by s. 624.424 and any rule adopted under
1167	this section, except for those lines identified as accident and
1168	health insurance and except for policies written under the
1169	National Flood Insurance Program or the Federal Crop Insurance
1170	Program. For purposes of this sub-subparagraph, the term
1171	"workers' compensation" includes both workers' compensation
1172	insurance and excess workers' compensation insurance.
1173	g.  The Florida Surplus Lines Service Office shall
1174	determine annually the aggregate statewide written premium in
1175	subject lines of business procured by assessable insureds and
1176	shall report that information to the corporation in a form and
1177	at a time the corporation specifies to ensure that the
1178	corporation can meet the requirements of this subsection and the
1179	corporation's financing obligations.
1180	h.  The Florida Surplus Lines Service Office shall verify
1181	the proper application by surplus lines agents of assessment
1182	percentages for regular assessments and emergency assessments
1183	levied under this subparagraph on assessable insureds and shall
1184	assist the corporation in ensuring the accurate, timely
1185	collection and payment of assessments by surplus lines agents as
1186	required by the corporation.
1187	i.  If a deficit is incurred in any account in 2008 or
1188	thereafter, the board of governors shall levy a Citizens
1189	policyholder surcharge an immediate assessment against the
1190	premium of each nonhomestead property policyholder in all
1191	accounts of the corporation, as a uniform percentage of the
1192	premium of the policy of up to 10 percent of such premium, which
1193	funds shall be used to offset the deficit. If this assessment is
1194	insufficient to eliminate the deficit, the board of governors
1195	shall levy an additional assessment against all policyholders of
1196	the corporation for a 12-month period, which shall be collected
1197	at the time of issuance or renewal of a policy, as a uniform
1198	percentage of the premium for the policy of up to 15 10 percent
1199	of such premium, which funds shall be used to further offset the
1200	deficit. Citizens policyholder surcharges under this sub-
1201	subparagraph are not considered premium and are not subject to
1202	commissions, fees, or premium taxes. However, failure to pay
1203	such surcharges shall be treated as failure to pay premium.
1204	j.  If the amount of any assessments or surcharges
1205	collected from corporation policyholders, assessable insurers or
1206	their policyholders, or assessable insureds exceeds the amount
1207	of the deficits, such excess amounts shall be remitted to and
1208	retained by the corporation in a reserve to be used by the
1209	corporation, as determined by the board of governors and
1210	approved by the office, to pay claims or reduce any past,
1211	present, or future plan-year deficits or to reduce outstanding
1212	debt. The board of governors shall maintain separate accounting
1213	records that consolidate data for nonhomestead properties,
1214	including, but not limited to, number of policies, insured
1215	values, premiums written, and losses. The board of governors
1216	shall annually report to the office and the Legislature a
1217	summary of such data.
1218	(c)  The plan of operation of the corporation:
1219	1.  Must provide for adoption of residential property and
1220	casualty insurance policy forms and commercial residential and
1221	nonresidential property insurance forms, which forms must be
1222	approved by the office prior to use. The corporation shall adopt
1223	the following policy forms:
1224	a.  Standard personal lines policy forms that are
1225	comprehensive multiperil policies providing full coverage of a
1226	residential property equivalent to the coverage provided in the
1227	private insurance market under an HO-3, HO-4, or HO-6 policy.
1228	b.  Basic personal lines policy forms that are policies
1229	similar to an HO-8 policy or a dwelling fire policy that provide
1230	coverage meeting the requirements of the secondary mortgage
1231	market, but which coverage is more limited than the coverage
1232	under a standard policy.
1233	c.  Commercial lines residential and nonresidential policy
1234	forms that are generally similar to the basic perils of full
1235	coverage obtainable for commercial residential structures and
1236	commercial nonresidential structures in the admitted voluntary
1237	market.
1238	d.  Personal lines and commercial lines residential
1239	property insurance forms that cover the peril of wind only. The
1240	forms are applicable only to residential properties located in
1241	areas eligible for coverage under the high-risk account referred
1242	to in sub-subparagraph (b)2.a.
1243	e.  Commercial lines nonresidential property insurance
1244	forms that cover the peril of wind only. The forms are
1245	applicable only to nonresidential properties located in areas
1246	eligible for coverage under the high-risk account referred to in
1247	sub-subparagraph (b)2.a.
1248	f.  The corporation may adopt variations of the policy
1249	forms listed in sub-subparagraphs a.-e. that contain more
1250	restrictive coverage.
1251	2.a.  Must provide that the corporation adopt a program in
1252	which the corporation and authorized insurers enter into quota
1253	share primary insurance agreements for hurricane coverage, as
1254	defined in s. 627.4025(2)(a), for eligible risks, and adopt
1255	property insurance forms for eligible risks which cover the
1256	peril of wind only. As used in this subsection, the term:
1257	(I)  "Quota share primary insurance" means an arrangement
1258	in which the primary hurricane coverage of an eligible risk is
1259	provided in specified percentages by the corporation and an
1260	authorized insurer. The corporation and authorized insurer are
1261	each solely responsible for a specified percentage of hurricane
1262	coverage of an eligible risk as set forth in a quota share
1263	primary insurance agreement between the corporation and an
1264	authorized insurer and the insurance contract. The
1265	responsibility of the corporation or authorized insurer to pay
1266	its specified percentage of hurricane losses of an eligible
1267	risk, as set forth in the quota share primary insurance
1268	agreement, may not be altered by the inability of the other
1269	party to the agreement to pay its specified percentage of
1270	hurricane losses. Eligible risks that are provided hurricane
1271	coverage through a quota share primary insurance arrangement
1272	must be provided policy forms that set forth the obligations of
1273	the corporation and authorized insurer under the arrangement,
1274	clearly specify the percentages of quota share primary insurance
1275	provided by the corporation and authorized insurer, and
1276	conspicuously and clearly state that neither the authorized
1277	insurer nor the corporation may be held responsible beyond its
1278	specified percentage of coverage of hurricane losses.
1279	(II)  "Eligible risks" means personal lines residential and
1280	commercial lines residential risks that meet the underwriting
1281	criteria of the corporation and are located in areas that were
1282	eligible for coverage by the Florida Windstorm Underwriting
1283	Association on January 1, 2002.
1284	b.  The corporation may enter into quota share primary
1285	insurance agreements with authorized insurers at corporation
1286	coverage levels of 90 percent and 50 percent.
1287	c.  If the corporation determines that additional coverage
1288	levels are necessary to maximize participation in quota share
1289	primary insurance agreements by authorized insurers, the
1290	corporation may establish additional coverage levels. However,
1291	the corporation's quota share primary insurance coverage level
1292	may not exceed 90 percent.
1293	d.  Any quota share primary insurance agreement entered
1294	into between an authorized insurer and the corporation must
1295	provide for a uniform specified percentage of coverage of
1296	hurricane losses, by county or territory as set forth by the
1297	corporation board, for all eligible risks of the authorized
1298	insurer covered under the quota share primary insurance
1299	agreement.
1300	e.  Any quota share primary insurance agreement entered
1301	into between an authorized insurer and the corporation is
1302	subject to review and approval by the office. However, such
1303	agreement shall be authorized only as to insurance contracts
1304	entered into between an authorized insurer and an insured who is
1305	already insured by the corporation for wind coverage.
1306	f.  For all eligible risks covered under quota share
1307	primary insurance agreements, the exposure and coverage levels
1308	for both the corporation and authorized insurers shall be
1309	reported by the corporation to the Florida Hurricane Catastrophe
1310	Fund. For all policies of eligible risks covered under quota
1311	share primary insurance agreements, the corporation and the
1312	authorized insurer shall maintain complete and accurate records
1313	for the purpose of exposure and loss reimbursement audits as
1314	required by Florida Hurricane Catastrophe Fund rules. The
1315	corporation and the authorized insurer shall each maintain
1316	duplicate copies of policy declaration pages and supporting
1317	claims documents.
1318	g.  The corporation board shall establish in its plan of
1319	operation standards for quota share agreements which ensure that
1320	there is no discriminatory application among insurers as to the
1321	terms of quota share agreements, pricing of quota share
1322	agreements, incentive provisions if any, and consideration paid
1323	for servicing policies or adjusting claims.
1324	h.  The quota share primary insurance agreement between the
1325	corporation and an authorized insurer must set forth the
1326	specific terms under which coverage is provided, including, but
1327	not limited to, the sale and servicing of policies issued under
1328	the agreement by the insurance agent of the authorized insurer
1329	producing the business, the reporting of information concerning
1330	eligible risks, the payment of premium to the corporation, and
1331	arrangements for the adjustment and payment of hurricane claims
1332	incurred on eligible risks by the claims adjuster and personnel
1333	of the authorized insurer. Entering into a quota sharing
1334	insurance agreement between the corporation and an authorized
1335	insurer shall be voluntary and at the discretion of the
1336	authorized insurer.
1337	3.  May provide that the corporation may employ or
1338	otherwise contract with individuals or other entities to provide
1339	administrative or professional services that may be appropriate
1340	to effectuate the plan. The corporation shall have the power to
1341	borrow funds, by issuing bonds or by incurring other
1342	indebtedness, and shall have other powers reasonably necessary
1343	to effectuate the requirements of this subsection, including,
1344	without limitation, the power to issue bonds and incur other
1345	indebtedness in order to refinance outstanding bonds or other
1346	indebtedness. The corporation may, but is not required to, seek
1347	judicial validation of its bonds or other indebtedness under
1348	chapter 75. The corporation may issue bonds or incur other
1349	indebtedness, or have bonds issued on its behalf by a unit of
1350	local government pursuant to subparagraph (p)2., in the absence
1351	of a hurricane or other weather-related event, upon a
1352	determination by the corporation, subject to approval by the
1353	office, that such action would enable it to efficiently meet the
1354	financial obligations of the corporation and that such
1355	financings are reasonably necessary to effectuate the
1356	requirements of this subsection. The corporation is authorized
1357	to take all actions needed to facilitate tax-free status for any
1358	such bonds or indebtedness, including formation of trusts or
1359	other affiliated entities. The corporation shall have the
1360	authority to pledge assessments, projected recoveries from the
1361	Florida Hurricane Catastrophe Fund, other reinsurance
1362	recoverables, market equalization and other surcharges, and
1363	other funds available to the corporation as security for bonds
1364	or other indebtedness. In recognition of s. 10, Art. I of the
1365	State Constitution, prohibiting the impairment of obligations of
1366	contracts, it is the intent of the Legislature that no action be
1367	taken whose purpose is to impair any bond indenture or financing
1368	agreement or any revenue source committed by contract to such
1369	bond or other indebtedness.
1370	4.a.  Must require that the corporation operate subject to
1371	the supervision and approval of a board of governors consisting
1372	of eight individuals who are residents of this state, from
1373	different geographical areas of this state. The Governor, the
1374	Chief Financial Officer, the President of the Senate, and the
1375	Speaker of the House of Representatives shall each appoint two
1376	members of the board. At least one of the two members appointed
1377	by each appointing officer must have demonstrated expertise in
1378	insurance. The Chief Financial Officer shall designate one of
1379	the appointees as chair. All board members serve at the pleasure
1380	of the appointing officer. All members of the board of governors
1381	are subject to removal at will by the officers who appointed
1382	them. All board members, including the chair, must be appointed
1383	to serve for 3-year terms beginning annually on a date
1384	designated by the plan. Any board vacancy shall be filled for
1385	the unexpired term by the appointing officer. The Chief
1386	Financial Officer shall appoint a technical advisory group to
1387	provide information and advice to the board of governors in
1388	connection with the board's duties under this subsection. The
1389	executive director and senior managers of the corporation shall
1390	be engaged by the board and serve at the pleasure of the board.
1391	Any executive director appointed on or after July 1, 2006, is
1392	subject to confirmation by the Senate. The executive director is
1393	responsible for employing other staff as the corporation may
1394	require, subject to review and concurrence by the board.
1395	b.  The board shall create a Market Accountability Advisory
1396	Committee to assist the corporation in developing awareness of
1397	its rates and its customer and agent service levels in
1398	relationship to the voluntary market insurers writing similar
1399	coverage. The members of the advisory committee shall consist of
1400	the following 11 persons, one of whom must be elected chair by
1401	the members of the committee: four representatives, one
1402	appointed by the Florida Association of Insurance Agents, one by
1403	the Florida Association of Insurance and Financial Advisors, one
1404	by the Professional Insurance Agents of Florida, and one by the
1405	Latin American Association of Insurance Agencies; three
1406	representatives appointed by the insurers with the three highest
1407	voluntary market share of residential property insurance
1408	business in the state; one representative from the Office of
1409	Insurance Regulation; one consumer appointed by the board who is
1410	insured by the corporation at the time of appointment to the
1411	committee; one representative appointed by the Florida
1412	Association of Realtors; and one representative appointed by the
1413	Florida Bankers Association. All members must serve for 3-year
1414	terms and may serve for consecutive terms. The committee shall
1415	report to the corporation at each board meeting on insurance
1416	market issues which may include rates and rate competition with
1417	the voluntary market; service, including policy issuance, claims
1418	processing, and general responsiveness to policyholders,
1419	applicants, and agents; and matters relating to depopulation.
1420	5.  Must provide a procedure for determining the
1421	eligibility of a risk for coverage, as follows:
1422	a.  Subject to the provisions of s. 627.3517, with respect
1423	to personal lines residential risks, if the risk is offered
1424	coverage from an authorized insurer at the insurer's approved
1425	rate under either a standard policy including wind coverage or,
1426	if consistent with the insurer's underwriting rules as filed
1427	with the office, a basic policy including wind coverage, for a
1428	new application to the corporation for coverage, the risk is not
1429	eligible for any policy issued by the corporation unless the
1430	premium for coverage from the authorized insurer is more than 15
1431	percent greater than the premium for comparable coverage from
1432	the corporation. If the risk is not able to obtain any such
1433	offer, the risk is eligible for either a standard policy
1434	including wind coverage or a basic policy including wind
1435	coverage issued by the corporation; however, if the risk could
1436	not be insured under a standard policy including wind coverage
1437	regardless of market conditions, the risk shall be eligible for
1438	a basic policy including wind coverage unless rejected under
1439	subparagraph 9. However, with regard to a policyholder of the
1440	corporation or a policyholder removed from the corporation
1441	through an assumption agreement until the end of the assumption
1442	period, the policyholder remains eligible for coverage from the
1443	corporation regardless of any offer of coverage from an
1444	authorized insurer or surplus lines insurer. The corporation
1445	shall determine the type of policy to be provided on the basis
1446	of objective standards specified in the underwriting manual and
1447	based on generally accepted underwriting practices.
1448	(I)  If the risk accepts an offer of coverage through the
1449	market assistance plan or an offer of coverage through a
1450	mechanism established by the corporation before a policy is
1451	issued to the risk by the corporation or during the first 30
1452	days of coverage by the corporation, and the producing agent who
1453	submitted the application to the plan or to the corporation is
1454	not currently appointed by the insurer, the insurer shall:
1455	(A)  Pay to the producing agent of record of the policy,
1456	for the first year, an amount that is the greater of the
1457	insurer's usual and customary commission for the type of policy
1458	written or a fee equal to the usual and customary commission of
1459	the corporation; or
1460	(B)  Offer to allow the producing agent of record of the
1461	policy to continue servicing the policy for a period of not less
1462	than 1 year and offer to pay the agent the greater of the
1463	insurer's or the corporation's usual and customary commission
1464	for the type of policy written.
1465
1466	If the producing agent is unwilling or unable to accept
1467	appointment, the new insurer shall pay the agent in accordance
1468	with sub-sub-sub-subparagraph (A).
1469	(II)  When the corporation enters into a contractual
1470	agreement for a take-out plan, the producing agent of record of
1471	the corporation policy is entitled to retain any unearned
1472	commission on the policy, and the insurer shall:
1473	(A)  Pay to the producing agent of record of the
1474	corporation policy, for the first year, an amount that is the
1475	greater of the insurer's usual and customary commission for the
1476	type of policy written or a fee equal to the usual and customary
1477	commission of the corporation; or
1478	(B)  Offer to allow the producing agent of record of the
1479	corporation policy to continue servicing the policy for a period
1480	of not less than 1 year and offer to pay the agent the greater
1481	of the insurer's or the corporation's usual and customary
1482	commission for the type of policy written.
1483
1484	If the producing agent is unwilling or unable to accept
1485	appointment, the new insurer shall pay the agent in accordance
1486	with sub-sub-sub-subparagraph (A).
1487	b.  With respect to commercial lines residential risks, for
1488	a new application to the corporation for coverage, if the risk
1489	is offered coverage under a policy including wind coverage from
1490	an authorized insurer at its approved rate, the risk is not
1491	eligible for any policy issued by the corporation unless the
1492	premium for coverage from the authorized insurer is more than 15
1493	percent greater than the premium for comparable coverage from
1494	the corporation. If the risk is not able to obtain any such
1495	offer, the risk is eligible for a policy including wind coverage
1496	issued by the corporation. However, with regard to a
1497	policyholder of the corporation or a policyholder removed from
1498	the corporation through an assumption agreement until the end of
1499	the assumption period, the policyholder remains eligible for
1500	coverage from the corporation regardless of any offer of
1501	coverage from an authorized insurer or surplus lines insurer.
1502	(I)  If the risk accepts an offer of coverage through the
1503	market assistance plan or an offer of coverage through a
1504	mechanism established by the corporation before a policy is
1505	issued to the risk by the corporation or during the first 30
1506	days of coverage by the corporation, and the producing agent who
1507	submitted the application to the plan or the corporation is not
1508	currently appointed by the insurer, the insurer shall:
1509	(A)  Pay to the producing agent of record of the policy,
1510	for the first year, an amount that is the greater of the
1511	insurer's usual and customary commission for the type of policy
1512	written or a fee equal to the usual and customary commission of
1513	the corporation; or
1514	(B)  Offer to allow the producing agent of record of the
1515	policy to continue servicing the policy for a period of not less
1516	than 1 year and offer to pay the agent the greater of the
1517	insurer's or the corporation's usual and customary commission
1518	for the type of policy written.
1519
1520	If the producing agent is unwilling or unable to accept
1521	appointment, the new insurer shall pay the agent in accordance
1522	with sub-sub-sub-subparagraph (A).
1523	(II)  When the corporation enters into a contractual
1524	agreement for a take-out plan, the producing agent of record of
1525	the corporation policy is entitled to retain any unearned
1526	commission on the policy, and the insurer shall:
1527	(A)  Pay to the producing agent of record of the
1528	corporation policy, for the first year, an amount that is the
1529	greater of the insurer's usual and customary commission for the
1530	type of policy written or a fee equal to the usual and customary
1531	commission of the corporation; or
1532	(B)  Offer to allow the producing agent of record of the
1533	corporation policy to continue servicing the policy for a period
1534	of not less than 1 year and offer to pay the agent the greater
1535	of the insurer's or the corporation's usual and customary
1536	commission for the type of policy written.
1537
1538	If the producing agent is unwilling or unable to accept
1539	appointment, the new insurer shall pay the agent in accordance
1540	with sub-sub-sub-subparagraph (A).
1541	c.  For purposes of determining comparable coverage under
1542	sub-subparagraphs a. and b., the comparison shall be based on
1543	those forms and coverages that are reasonably comparable. The
1544	corporation may rely on a determination of comparable coverage
1545	and premium made by the producing agent who submits the
1546	application to the corporation, made in the agent's capacity as
1547	the corporation's agent. A comparison may be made solely of the
1548	premium with respect to the main building or structure only on
1549	the following basis: the same coverage A or other building
1550	limits; the same percentage hurricane deductible that applies on
1551	an annual basis or that applies to each hurricane for commercial
1552	residential property; the same percentage of ordinance and law
1553	coverage, if the same limit is offered by both the corporation
1554	and the authorized insurer; the same mitigation credits, to the
1555	extent the same types of credits are offered both by the
1556	corporation and the authorized insurer; the same method for loss
1557	payment, such as replacement cost or actual cash value, if the
1558	same method is offered both by the corporation and the
1559	authorized insurer in accordance with underwriting rules; and
1560	any other form or coverage that is reasonably comparable as
1561	determined by the board. If an application is submitted to the
1562	corporation for wind-only coverage in the high-risk account, the
1563	premium for the corporation's wind-only policy plus the premium
1564	for the ex-wind policy that is offered by an authorized insurer
1565	to the applicant shall be compared to the premium for multiperil
1566	coverage offered by an authorized insurer, subject to the
1567	standards for comparison specified in this subparagraph. If the
1568	corporation or the applicant requests from the authorized
1569	insurer a breakdown of the premium of the offer by types of
1570	coverage so that a comparison may be made by the corporation or
1571	its agent and the authorized insurer refuses or is unable to
1572	provide such information, the corporation may treat the offer as
1573	not being an offer of coverage from an authorized insurer at the
1574	insurer's approved rate.
1575	6.  Must include rules for classifications of risks and
1576	rates therefor.
1577	7.  Must provide that if premium and investment income for
1578	an account attributable to a particular calendar year are in
1579	excess of projected losses and expenses for the account
1580	attributable to that year, such excess shall be held in surplus
1581	in the account. Such surplus shall be available to defray
1582	deficits in that account as to future years and shall be used
1583	for that purpose prior to assessing assessable insurers and
1584	assessable insureds as to any calendar year.
1585	8.  Must provide objective criteria and procedures to be
1586	uniformly applied for all applicants in determining whether an
1587	individual risk is so hazardous as to be uninsurable. In making
1588	this determination and in establishing the criteria and
1589	procedures, the following shall be considered:
1590	a.  Whether the likelihood of a loss for the individual
1591	risk is substantially higher than for other risks of the same
1592	class; and
1593	b.  Whether the uncertainty associated with the individual
1594	risk is such that an appropriate premium cannot be determined.
1595
1596	The acceptance or rejection of a risk by the corporation shall
1597	be construed as the private placement of insurance, and the
1598	provisions of chapter 120 shall not apply.
1599	9.  Must provide that the corporation shall make its best
1600	efforts to procure catastrophe reinsurance at reasonable rates,
1601	to cover its projected 100-year probable maximum loss as
1602	determined by the board of governors.
1603	10.  Must provide that in the event of regular deficit
1604	assessments under sub-subparagraph (b)3.a. or sub-subparagraph
1605	(b)3.b., in the personal lines account, the commercial lines
1606	residential account, or the high-risk account, the corporation
1607	shall levy upon corporation policyholders in its next rate
1608	filing, or by a separate rate filing solely for this purpose, a
1609	Citizens policyholder surcharge arising from a regular
1610	assessment in such account in a percentage equal to the total
1611	amount of such regular assessments divided by the aggregate
1612	statewide direct written premium for subject lines of business
1613	for the prior calendar year. For purposes of calculating the
1614	Citizens policyholder surcharge to be levied under this
1615	subparagraph, the total amount of the regular assessment to
1616	which this surcharge is related shall be determined as set forth
1617	in subparagraph (b)3., without deducting the estimated Citizens
1618	policyholder surcharge. Citizens policyholder surcharges under
1619	this subparagraph are not considered premium and are not subject
1620	to commissions, fees, or premium taxes; however, failure to pay
1621	a market equalization surcharge shall be treated as failure to
1622	pay premium.
1623	10.11.  The policies issued by the corporation must provide
1624	that, if the corporation or the market assistance plan obtains
1625	an offer from an authorized insurer to cover the risk at its
1626	approved rates, the risk is no longer eligible for renewal
1627	through the corporation, except as otherwise provided in this
1628	subsection.
1629	11.12.  Corporation policies and applications must include
1630	a notice that the corporation policy could, under this section,
1631	be replaced with a policy issued by an authorized insurer that
1632	does not provide coverage identical to the coverage provided by
1633	the corporation. The notice shall also specify that acceptance
1634	of corporation coverage creates a conclusive presumption that
1635	the applicant or policyholder is aware of this potential.
1636	12.13.  May establish, subject to approval by the office,
1637	different eligibility requirements and operational procedures
1638	for any line or type of coverage for any specified county or
1639	area if the board determines that such changes to the
1640	eligibility requirements and operational procedures are
1641	justified due to the voluntary market being sufficiently stable
1642	and competitive in such area or for such line or type of
1643	coverage and that consumers who, in good faith, are unable to
1644	obtain insurance through the voluntary market through ordinary
1645	methods would continue to have access to coverage from the
1646	corporation. When coverage is sought in connection with a real
1647	property transfer, such requirements and procedures shall not
1648	provide for an effective date of coverage later than the date of
1649	the closing of the transfer as established by the transferor,
1650	the transferee, and, if applicable, the lender.
1651	13.14.  Must provide that, with respect to the high-risk
1652	account, any assessable insurer with a surplus as to
1653	policyholders of $25 million or less writing 25 percent or more
1654	of its total countrywide property insurance premiums in this
1655	state may petition the office, within the first 90 days of each
1656	calendar year, to qualify as a limited apportionment company. A
1657	regular assessment levied by the corporation on a limited
1658	apportionment company for a deficit incurred by the corporation
1659	for the high-risk account in 2006 or thereafter may be paid to
1660	the corporation on a monthly basis as the assessments are
1661	collected by the limited apportionment company from its insureds
1662	pursuant to s. 627.3512, but the regular assessment must be paid
1663	in full within 12 months after being levied by the corporation.
1664	A limited apportionment company shall collect from its
1665	policyholders any emergency assessment imposed under sub-
1666	subparagraph (b)3.d. The plan shall provide that, if the office
1667	determines that any regular assessment will result in an
1668	impairment of the surplus of a limited apportionment company,
1669	the office may direct that all or part of such assessment be
1670	deferred as provided in subparagraph (p)4. However, there shall
1671	be no limitation or deferment of an emergency assessment to be
1672	collected from policyholders under sub-subparagraph (b)3.d.
1673	14.15.  Must provide that the corporation appoint as its
1674	licensed agents only those agents who also hold an appointment
1675	as defined in s. 626.015(3) with an insurer who at the time of
1676	the agent's initial appointment by the corporation is authorized
1677	to write and is actually writing personal lines residential
1678	property coverage, commercial residential property coverage, or
1679	commercial nonresidential property coverage within the state.
1680	15.16.  Must provide, by July 1, 2007, a premium payment
1681	plan option to its policyholders which allows at a minimum for
1682	quarterly and semiannual payment of premiums. A monthly payment
1683	plan may, but is not required to, be offered.
1684	16.17.  Must limit coverage on mobile homes or manufactured
1685	homes built prior to 1994 to actual cash value of the dwelling
1686	rather than replacement costs of the dwelling.
1687	17.18.  May provide such limits of coverage as the board
1688	determines, consistent with the requirements of this subsection.
1689	18.19.  May require commercial property to meet specified
1690	hurricane mitigation construction features as a condition of
1691	eligibility for coverage.
1692	(m)1.  Rates for coverage provided by the corporation shall
1693	be actuarially sound and subject to the requirements of s.
1694	627.062, except as otherwise provided in this paragraph. The
1695	corporation shall file its recommended rates with the office at
1696	least annually. The corporation shall provide any additional
1697	information regarding the rates which the office requires. The
1698	office shall consider the recommendations of the board and issue
1699	a final order establishing the rates for the corporation within
1700	45 days after the recommended rates are filed. The corporation
1701	may not pursue an administrative challenge or judicial review of
1702	the final order of the office.
1703	2.  In addition to the rates otherwise determined pursuant
1704	to this paragraph, the corporation shall impose and collect an
1705	amount equal to the premium tax provided for in s. 624.509 to
1706	augment the financial resources of the corporation.
1707	3.  After the public hurricane loss-projection model under
1708	s. 627.06281 has been found to be accurate and reliable by the
1709	Florida Commission on Hurricane Loss Projection Methodology,
1710	that model shall serve as the minimum benchmark for determining
1711	the windstorm portion of the corporation's rates. This
1712	subparagraph does not require or allow the corporation to adopt
1713	rates lower than the rates otherwise required or allowed by this
1714	paragraph.
1715	4.  The rate filings for the corporation which were
1716	approved by the office and which took effect January 1, 2007,
1717	are rescinded, except for those rates that were lowered. As soon
1718	as possible, the corporation shall begin using the lower rates
1719	that were in effect on December 31, 2006, and shall provide
1720	refunds to policyholders who have paid higher rates as a result
1721	of that rate filing. The rates in effect on December 31, 2006,
1722	shall remain in effect for the 2007 and 2008 calendar years
1723	except for any rate change that results in a lower rate. The
1724	next rate change that may increase rates shall take effect
1725	January 1, 2009, pursuant to a new rate filing recommended by
1726	the corporation and established by the office, subject to the
1727	requirements of this paragraph.
1728	5.a.  Beginning on January 15, 2009, and each year
1729	thereafter, the corporation must make a recommended actuarially
1730	sound rate filing for each personal and commercial line of
1731	business it writes, to be effective no earlier than July 1,
1732	2009.
1733	b.  For the 36-month period beginning with the effective
1734	date for each of the rate filings made by the corporation on
1735	January 15, 2009, the rates established by the office for the
1736	corporation for its personal residential multiperil policies,
1737	its commercial residential multiperil policies, and its
1738	commercial nonresidential multiperil policies may not result in
1739	an overall average statewide premium increase of more than 10
1740	percent or an increase for any single policyholder of more than
1741	10 percent, during the first 12-month period, and may not result
1742	in an overall average statewide premium increase of more than 10
1743	percent, or an increase for any single policyholder of more than
1744	10 percent, during each of the two subsequent 12-month periods,
1745	excluding coverage changes and surcharges.
1746	c.  For the 36-month period beginning with the effective
1747	date for the rate filings made by the corporation on January 15,
1748	2009, the rates established by the office for the corporation
1749	for its personal residential wind-only policies, its commercial
1750	residential wind-only policies, and its commercial
1751	nonresidential wind-only policies may not result in an overall
1752	average statewide premium increase of more than 10 percent, or
1753	an increase for any single policyholder of more than 10 percent,
1754	during the first 12-month period, and may not result in an
1755	overall average statewide premium increase of more than 10
1756	percent, or an increase for any single policyholder of more than
1757	10 percent, during each of the two subsequent 12-month periods,
1758	excluding coverage changes and surcharges.
1759	(p)1.  The corporation shall certify to the office its
1760	needs for annual assessments as to a particular calendar year,
1761	and for any interim assessments that it deems to be necessary to
1762	sustain operations as to a particular year pending the receipt
1763	of annual assessments. Upon verification, the office shall
1764	approve such certification, and the corporation shall levy such
1765	annual or interim assessments. Such assessments shall be
1766	prorated as provided in paragraph (b). The corporation shall
1767	take all reasonable and prudent steps necessary to collect the
1768	amount of assessment due from each assessable insurer,
1769	including, if prudent, filing suit to collect such assessment.
1770	If the corporation is unable to collect an assessment from any
1771	assessable insurer, the uncollected assessments shall be levied
1772	as an additional assessment against the assessable insurers and
1773	any assessable insurer required to pay an additional assessment
1774	as a result of such failure to pay shall have a cause of action
1775	against such nonpaying assessable insurer. Assessments shall be
1776	included as an appropriate factor in the making of rates. The
1777	failure of a surplus lines agent to collect and remit any
1778	regular or emergency assessment levied by the corporation is
1779	considered to be a violation of s. 626.936 and subjects the
1780	surplus lines agent to the penalties provided in that section.
1781	2.  The governing body of any unit of local government, any
1782	residents of which are insured by the corporation, may issue
1783	bonds as defined in s. 125.013 or s. 166.101 from time to time
1784	to fund an assistance program, in conjunction with the
1785	corporation, for the purpose of defraying deficits of the
1786	corporation. In order to avoid needless and indiscriminate
1787	proliferation, duplication, and fragmentation of such assistance
1788	programs, any unit of local government, any residents of which
1789	are insured by the corporation, may provide for the payment of
1790	losses, regardless of whether or not the losses occurred within
1791	or outside of the territorial jurisdiction of the local
1792	government. Revenue bonds under this subparagraph may not be
1793	issued until validated pursuant to chapter 75, unless a state of
1794	emergency is declared by executive order or proclamation of the
1795	Governor pursuant to s. 252.36 making such findings as are
1796	necessary to determine that it is in the best interests of, and
1797	necessary for, the protection of the public health, safety, and
1798	general welfare of residents of this state and declaring it an
1799	essential public purpose to permit certain municipalities or
1800	counties to issue such bonds as will permit relief to claimants
1801	and policyholders of the corporation. Any such unit of local
1802	government may enter into such contracts with the corporation
1803	and with any other entity created pursuant to this subsection as
1804	are necessary to carry out this paragraph. Any bonds issued
1805	under this subparagraph shall be payable from and secured by
1806	moneys received by the corporation from emergency assessments
1807	under sub-subparagraph (b)3.d., and assigned and pledged to or
1808	on behalf of the unit of local government for the benefit of the
1809	holders of such bonds. The funds, credit, property, and taxing
1810	power of the state or of the unit of local government shall not
1811	be pledged for the payment of such bonds. If any of the bonds
1812	remain unsold 60 days after issuance, the office shall require
1813	all insurers subject to assessment to purchase the bonds, which
1814	shall be treated as admitted assets; each insurer shall be
1815	required to purchase that percentage of the unsold portion of
1816	the bond issue that equals the insurer's relative share of
1817	assessment liability under this subsection. An insurer shall not
1818	be required to purchase the bonds to the extent that the office
1819	determines that the purchase would endanger or impair the
1820	solvency of the insurer.
1821	3.a.  The corporation shall adopt one or more programs
1822	subject to approval by the office for the reduction of both new
1823	and renewal writings in the corporation. Beginning January 1,
1824	2008, any program the corporation adopts for the payment of
1825	bonuses to an insurer for each risk the insurer removes from the
1826	corporation shall comply with s. 627.3511(2) and may not exceed
1827	the amount referenced in s. 627.3511(2) for each risk removed.
1828	The corporation may consider any prudent and not unfairly
1829	discriminatory approach to reducing corporation writings, and
1830	may adopt a credit against assessment liability or other
1831	liability that provides an incentive for insurers to take risks
1832	out of the corporation and to keep risks out of the corporation
1833	by maintaining or increasing voluntary writings in counties or
1834	areas in which corporation risks are highly concentrated and a
1835	program to provide a formula under which an insurer voluntarily
1836	taking risks out of the corporation by maintaining or increasing
1837	voluntary writings will be relieved wholly or partially from
1838	assessments under sub-subparagraphs (b)3.a. and b. However, any
1839	"take-out bonus" or payment to an insurer must be conditioned on
1840	the property being insured for at least 5 years by the insurer,
1841	unless canceled or nonrenewed by the policyholder. If the policy
1842	is canceled or nonrenewed by the policyholder before the end of
1843	the 5-year period, the amount of the take-out bonus must be
1844	prorated for the time period the policy was insured. When the
1845	corporation enters into a contractual agreement for a take-out
1846	plan, the producing agent of record of the corporation policy is
1847	entitled to retain any unearned commission on such policy, and
1848	the insurer shall either:
1849	(I)  Pay to the producing agent of record of the policy,
1850	for the first year, an amount which is the greater of the
1851	insurer's usual and customary commission for the type of policy
1852	written or a policy fee equal to the usual and customary
1853	commission of the corporation; or
1854	(II)  Offer to allow the producing agent of record of the
1855	policy to continue servicing the policy for a period of not less
1856	than 1 year and offer to pay the agent the insurer's usual and
1857	customary commission for the type of policy written. If the
1858	producing agent is unwilling or unable to accept appointment by
1859	the new insurer, the new insurer shall pay the agent in
1860	accordance with sub-sub-subparagraph (I).
1861	b.  Any credit or exemption from regular assessments
1862	adopted under this subparagraph shall last no longer than the 3
1863	years following the cancellation or expiration of the policy by
1864	the corporation. With the approval of the office, the board may
1865	extend such credits for an additional year if the insurer
1866	guarantees an additional year of renewability for all policies
1867	removed from the corporation, or for 2 additional years if the
1868	insurer guarantees 2 additional years of renewability for all
1869	policies so removed.
1870	c.  There shall be no credit, limitation, exemption, or
1871	deferment from emergency assessments to be collected from
1872	policyholders pursuant to sub-subparagraph (b)3.d.
1873	4.  The plan shall provide for the deferment, in whole or
1874	in part, of the assessment of an assessable insurer, other than
1875	an emergency assessment collected from policyholders pursuant to
1876	sub-subparagraph (b)3.d., if the office finds that payment of
1877	the assessment would endanger or impair the solvency of the
1878	insurer. In the event an assessment against an assessable
1879	insurer is deferred in whole or in part, the amount by which
1880	such assessment is deferred may be assessed against the other
1881	assessable insurers in a manner consistent with the basis for
1882	assessments set forth in paragraph (b).
1883	5.  Effective July 1, 2007, in order to evaluate the costs
1884	and benefits of approved take-out plans, if the corporation pays
1885	a bonus or other payment to an insurer for an approved take-out
1886	plan, it shall maintain a record of the address or such other
1887	identifying information on the property or risk removed in order
1888	to track if and when the property or risk is later insured by
1889	the corporation.
1890	6.  Any policy taken out, assumed, or removed from the
1891	corporation is, as of the effective date of the take-out,
1892	assumption, or removal, direct insurance issued by the insurer
1893	and not by the corporation, even if the corporation continues to
1894	service the policies. This subparagraph applies to policies of
1895	the corporation and not policies taken out, assumed, or removed
1896	from any other entity.
1897	(w)1.  The following records of the corporation are
1898	confidential and exempt from the provisions of s. 119.07(1) and
1899	s. 24(a), Art. I of the State Constitution:
1900	a.  Underwriting files, except that a policyholder or an
1901	applicant shall have access to his or her own underwriting
1902	files. Confidential and exempt underwriting file records may
1903	also be released to other governmental agencies upon written
1904	request and demonstration of need; such records held by the
1905	receiving agency remain confidential and exempt as provided
1906	herein.
1907	b.  Claims files, until termination of all litigation and
1908	settlement of all claims arising out of the same incident,
1909	although portions of the claims files may remain exempt, as
1910	otherwise provided by law. Confidential and exempt claims file
1911	records may be released to other governmental agencies upon
1912	written request and demonstration of need; such records held by
1913	the receiving agency remain confidential and exempt as provided
1914	for herein.
1915	c.  Records obtained or generated by an internal auditor
1916	pursuant to a routine audit, until the audit is completed, or if
1917	the audit is conducted as part of an investigation, until the
1918	investigation is closed or ceases to be active. An investigation
1919	is considered "active" while the investigation is being
1920	conducted with a reasonable, good faith belief that it could
1921	lead to the filing of administrative, civil, or criminal
1922	proceedings.
1923	d.  Matters reasonably encompassed in privileged attorney-
1924	client communications.
1925	e.  Proprietary information licensed to the corporation
1926	under contract and the contract provides for the confidentiality
1927	of such proprietary information.
1928	f.  All information relating to the medical condition or
1929	medical status of a corporation employee which is not relevant
1930	to the employee's capacity to perform his or her duties, except
1931	as otherwise provided in this paragraph. Information that which
1932	is exempt shall include, but is not limited to, information
1933	relating to workers' compensation, insurance benefits, and
1934	retirement or disability benefits.
1935	g.  Upon an employee's entrance into the employee
1936	assistance program, a program to assist any employee who has a
1937	behavioral or medical disorder, substance abuse problem, or
1938	emotional difficulty which affects the employee's job
1939	performance, all records relative to that participation shall be
1940	confidential and exempt from the provisions of s. 119.07(1) and
1941	s. 24(a), Art. I of the State Constitution, except as otherwise
1942	provided in s. 112.0455(11).
1943	h.  Information relating to negotiations for financing,
1944	reinsurance, depopulation, or contractual services, until the
1945	conclusion of the negotiations.
1946	i.  Minutes of closed meetings regarding underwriting
1947	files, and minutes of closed meetings regarding an open claims
1948	file until termination of all litigation and settlement of all
1949	claims with regard to that claim, except that information
1950	otherwise confidential or exempt by law shall will be redacted.
1951	2.  If When an authorized insurer is considering
1952	underwriting a risk insured by the corporation, relevant
1953	underwriting files and confidential claims files may be released
1954	to the insurer provided the insurer agrees in writing, notarized
1955	and under oath, to maintain the confidentiality of such files.
1956	If When a file is transferred to an insurer that file is no
1957	longer a public record because it is not held by an agency
1958	subject to the provisions of the public records law.
1959	Underwriting files and confidential claims files may also be
1960	released to staff of and the board of governors of the market
1961	assistance plan established pursuant to s. 627.3515, who must
1962	retain the confidentiality of such files, except such files may
1963	be released to authorized insurers that are considering assuming
1964	the risks to which the files apply, provided the insurer agrees
1965	in writing, notarized and under oath, to maintain the
1966	confidentiality of such files. Finally, the corporation or the
1967	board or staff of the market assistance plan may make the
1968	following information obtained from underwriting files and
1969	confidential claims files available to licensed general lines
1970	insurance agents: name, address, and telephone number of the
1971	residential property owner or insured; location of the risk;
1972	rating information; loss history; and policy type. The receiving
1973	licensed general lines insurance agent must retain the
1974	confidentiality of the information received.
1975	3.  A policyholder who has filed suit against the
1976	corporation has the right to discover the contents of his or her
1977	own claims file to the same extent that discovery of such
1978	contents would be available from a private insurer in litigation
1979	as provided by the Florida Rules of Civil Procedure, the Florida
1980	Evidence Code, and other applicable law. Pursuant to subpoena, a
1981	third party has the right to discover the contents of an
1982	insured's or applicant's underwriting or claims file to the same
1983	extent that discovery of such contents would be available from a
1984	private insurer by subpoena as provided by the Florida Rules of
1985	Civil Procedure, the Florida Evidence Code, and other applicable
1986	law, and subject to any confidentiality protections requested by
1987	the corporation and agreed to by the seeking party or ordered by
1988	the court. The corporation may release confidential underwriting
1989	and claims file contents and information as it deems necessary
1990	and appropriate to underwrite or service insurance policies and
1991	claims, subject to any confidentiality protections deemed
1992	necessary and appropriate by the corporation.
1993	4.2.  Portions of meetings of the corporation are exempt
1994	from the provisions of s. 286.011 and s. 24(b), Art. I of the
1995	State Constitution wherein confidential underwriting files or
1996	confidential open claims files are discussed. All portions of
1997	corporation meetings which are closed to the public shall be
1998	recorded by a court reporter. The court reporter shall record
1999	the times of commencement and termination of the meeting, all
2000	discussion and proceedings, the names of all persons present at
2001	any time, and the names of all persons speaking. No portion of
2002	any closed meeting shall be off the record. Subject to the
2003	provisions hereof and s. 119.07(1)(e)-(g), the court reporter's
2004	notes of any closed meeting shall be retained by the corporation
2005	for a minimum of 5 years. A copy of the transcript, less any
2006	exempt matters, of any closed meeting wherein claims are
2007	discussed shall become public as to individual claims after
2008	settlement of the claim.
2009	(dd)1.  For policies subject to nonrenewal as a result of
2010	the risk being no longer eligible for coverage due to being
2011	valued at $1 million or more, the corporation shall, directly or
2012	through the market assistance plan, make information from
2013	confidential underwriting and claims files of policyholders
2014	available only to licensed general lines agents who register
2015	with the corporation to receive such information according to
2016	the following procedures:
2017	2.  By August 1, 2006, the corporation shall provide such
2018	policyholders who are not eligible for renewal the opportunity
2019	to request in writing, within 30 days after the notification is
2020	sent, that information from their confidential underwriting and
2021	claims files not be released to licensed general lines agents
2022	registered pursuant to this paragraph.
2023	3.  By August 1, 2006, the corporation shall make available
2024	to licensed general lines agents the registration procedures to
2025	be used to obtain confidential information from underwriting and
2026	claims files for such policies not eligible for renewal. As a
2027	condition of registration, the corporation shall require the
2028	licensed general lines agent to attest that the agent has the
2029	experience and relationships with authorized or surplus lines
2030	carriers to attempt to offer replacement coverage for such
2031	policies.
2032	4.  By September 1, 2006, the corporation shall make
2033	available through a secured website to licensed general lines
2034	agents registered pursuant to this paragraph application,
2035	rating, loss history, mitigation, and policy type information
2036	relating to such policies not eligible for renewal and for which
2037	the policyholder has not requested the corporation withhold such
2038	information. The registered licensed general lines agent may use
2039	such information to contact and assist the policyholder in
2040	securing replacement policies, and the agent may disclose to the
2041	policyholder that such information was obtained from the
2042	corporation.
2043	(dd)(ee)  The assets of the corporation may be invested and
2044	managed by the State Board of Administration.
2045	(ee)(ff)  The office may establish a pilot program to offer
2046	optional sinkhole coverage in one or more counties or other
2047	territories of the corporation for the purpose of implementing
2048	s. 627.706, as amended by s. 30, chapter 2007-1, Laws of
2049	Florida. Under the pilot program, the corporation is not
2050	required to issue a notice of nonrenewal to exclude sinkhole
2051	coverage upon the renewal of existing policies, but may exclude
2052	such coverage using a notice of coverage change.
2053	(ff)  The corporation shall report claims data and
2054	histories to a consumer reporting agency, as defined by the
2055	federal Fair Credit Reporting Act, 15 U.S.C. 1681 et seq., that
2056	maintains a national database of similar data for use in
2057	connection with the underwriting of insurance involving a
2058	consumer.
2059	Section 12.  Paragraph (b) of subsection (2) of section
2060	627.4133, Florida Statutes, is amended to read:
2061	627.4133  Notice of cancellation, nonrenewal, or renewal
2062	premium.--
2063	(2)  With respect to any personal lines or commercial
2064	residential property insurance policy, including, but not
2065	limited to, any homeowner's, mobile home owner's, farmowner's,
2066	condominium association, condominium unit owner's, apartment
2067	building, or other policy covering a residential structure or
2068	its contents:
2069	(b)  The insurer shall give the named insured written
2070	notice of nonrenewal, cancellation, or termination at least 100
2071	days prior to the effective date of the nonrenewal,
2072	cancellation, or termination. However, the insurer shall give at
2073	least 100 days' written notice, or written notice by June 1,
2074	whichever is earlier, for any nonrenewal, cancellation, or
2075	termination that would be effective between June 1 and November
2076	30. The notice must include the reason or reasons for the
2077	nonrenewal, cancellation, or termination, except that:
2078	1.  The insurer shall give the named insured written notice
2079	of nonrenewal, cancellation, or termination at least 180 days
2080	prior to the effective date of the nonrenewal, cancellation, or
2081	termination for a named insured whose residential structure has
2082	been insured by that insurer or an affiliated insurer for at
2083	least a 5-year period immediately prior to date of the written
2084	notice.
2085	2.1.  When cancellation is for nonpayment of premium, at
2086	least 10 days' written notice of cancellation accompanied by the
2087	reason therefor shall be given. As used in this subparagraph,
2088	the term "nonpayment of premium" means failure of the named
2089	insured to discharge when due any of her or his obligations in
2090	connection with the payment of premiums on a policy or any
2091	installment of such premium, whether the premium is payable
2092	directly to the insurer or its agent or indirectly under any
2093	premium finance plan or extension of credit, or failure to
2094	maintain membership in an organization if such membership is a
2095	condition precedent to insurance coverage. "Nonpayment of
2096	premium" also means the failure of a financial institution to
2097	honor an insurance applicant's check after delivery to a
2098	licensed agent for payment of a premium, even if the agent has
2099	previously delivered or transferred the premium to the insurer.
2100	If a dishonored check represents the initial premium payment,
2101	the contract and all contractual obligations shall be void ab
2102	initio unless the nonpayment is cured within the earlier of 5
2103	days after actual notice by certified mail is received by the
2104	applicant or 15 days after notice is sent to the applicant by
2105	certified mail or registered mail, and if the contract is void,
2106	any premium received by the insurer from a third party shall be
2107	refunded to that party in full.
2108	3.2.  When such cancellation or termination occurs during
2109	the first 90 days during which the insurance is in force and the
2110	insurance is canceled or terminated for reasons other than
2111	nonpayment of premium, at least 20 days' written notice of
2112	cancellation or termination accompanied by the reason therefor
2113	shall be given except where there has been a material
2114	misstatement or misrepresentation or failure to comply with the
2115	underwriting requirements established by the insurer.
2116	4.3.  The requirement for providing written notice of
2117	nonrenewal by June 1 of any nonrenewal that would be effective
2118	between June 1 and November 30 does not apply to the following
2119	situations, but the insurer remains subject to the requirement
2120	to provide such notice at least 100 days prior to the effective
2121	date of nonrenewal:
2122	a.  A policy that is nonrenewed due to a revision in the
2123	coverage for sinkhole losses and catastrophic ground cover
2124	collapse pursuant to s. 627.730, as amended by s. 30, chapter
2125	2007-1, Laws of Florida.
2126	b.  A policy that is nonrenewed by Citizens Property
2127	Insurance Corporation, pursuant to s. 627.351(6), for a policy
2128	that has been assumed by an authorized insurer offering
2129	replacement or renewal coverage to the policyholder.
2130
2131	After the policy has been in effect for 90 days, the policy
2132	shall not be canceled by the insurer except when there has been
2133	a material misstatement, a nonpayment of premium, a failure to
2134	comply with underwriting requirements established by the insurer
2135	within 90 days of the date of effectuation of coverage, or a
2136	substantial change in the risk covered by the policy or when the
2137	cancellation is for all insureds under such policies for a given
2138	class of insureds. This paragraph does not apply to individually
2139	rated risks having a policy term of less than 90 days.
2140	Section 13.  Effective January 1, 2011, section 689.262,
2141	Florida Statutes, is created to read:
2142	689.262  Sale of residential property; disclosure of
2143	windstorm mitigation rating.--A purchaser of residential
2144	property must be informed of the windstorm mitigation rating of
2145	the structure, based on the uniform home grading scale adopted
2146	pursuant to s. 215.55865. The rating must be included in the
2147	contract for sale or as a separate document attached to the
2148	contract for sale. The Financial Services Commission may adopt
2149	rules, consistent with other state laws, to administer this
2150	section, including the form of the disclosure and the
2151	requirements for the windstorm mitigation inspection or report
2152	that is required for purposes of determining the rating.
2153	Section 14.  (1)  By December 15, 2008, Citizens Property
2154	Insurance Corporation shall transfer $250 million to the General
2155	Revenue Fund if the combined surplus of each account as defined
2156	in s. 627.351(6), Florida Statutes, exceeds $1 billion. The
2157	board of governors of Citizens Property Insurance Corporation
2158	must make a reasonable estimate of such surplus on or after
2159	December 1, 2008, and no later than December 14, 2008, using
2160	generally accepted actuarial and accounting practices,
2161	recognizing that audited financial statements will not yet be
2162	available.
2163	(2)  Beginning July 1, 2009, the board shall make quarterly
2164	transfers of any interest earned prior to the issuance of any
2165	surplus notes, interest paid, and principal repaid to the state
2166	for any surplus notes issued by the program after December 1,
2167	2008, to Citizens Property Insurance Corporation, provided such
2168	surplus notes were funded exclusively by an appropriation to the
2169	program by the Legislature for the 2008-2009 fiscal year. The
2170	corporation shall credit each account as defined in s.
2171	627.351(6) in a pro rata manner for the funds removed from each
2172	account to make the transfer required by subsection (11).
2173	Section 15.  Citizens Property Insurance Corporation may
2174	not use any amendments made to s. 215.5595, Florida Statutes, by
2175	this act or any transfer of funds authorized by this act as
2176	justification or cause in seeking any rate or assessment
2177	increase.
2178	Section 16.  Subsection (3) is added to section 627.06281,
2179	Florida Statutes, to read:
2180	627.06281  Public hurricane loss projection model;
2181	reporting of data by insurers.--
2182	(3)(a)  A residential property insurer may have access to
2183	and use the public hurricane loss projection model, including
2184	all assumptions and factors and all detailed loss results, for
2185	the purpose of calculating rate indications in a rate filing and
2186	for analytical purposes, including any analysis or evaluation of
2187	the model required under actuarial standards of practice.
2188	(b)  By January 1, 2009, the office shall establish by rule
2189	a fee schedule for access to and the use of the model. The fee
2190	schedule must be reasonably calculated to cover only the actual
2191	costs of providing access to and the use of the model.
2192	Section 17.  Section 627.0655, Florida Statutes, is amended
2193	to read:
2194	627.0655  Policyholder loss or expense-related premium
2195	discounts.--An insurer or person authorized to engage in the
2196	business of insurance in this state may include, in the premium
2197	charged an insured for any policy, contract, or certificate of
2198	insurance, a discount based on the fact that another policy,
2199	contract, or certificate of any type has been purchased by the
2200	insured from the same insurer or insurer group, the Citizens
2201	Property Insurance Corporation created under s. 627.351(6) if
2202	the same insurance agent is servicing both policies, or an
2203	insurer that has removed the policy from the Citizens Property
2204	Insurance Corporation if the same insurance agent is servicing
2205	both policies.
2206	Section 18.  (1)  The Citizens Property Insurance
2207	Corporation Mission Review Task Force is created to analyze and
2208	compile available data and to develop a report setting forth the
2209	statutory and operational changes needed to return Citizens
2210	Property Insurance Corporation to its former role as a state-
2211	created, noncompetitive residual market mechanism that provides
2212	property insurance coverage to risks that are otherwise entitled
2213	but unable to obtain such coverage in the private insurance
2214	market. The task force shall submit a report to the Governor,
2215	the President of the Senate, and the Speaker of the House of
2216	Representatives by January 31, 2009. At a minimum, the task
2217	force shall analyze and evaluate relevant and applicable
2218	information and data and develop recommendations concerning:
2219	(a)  The nature of Citizens Property Insurance
2220	Corporation's role in providing property insurance coverage only
2221	if such coverage is not available from private insurers.
2222	(b)  The ability of the admitted market to offer policies
2223	to those consumers formerly insured through Citizens Property
2224	Insurance Corporation. This consideration shall include, but not
2225	be limited to, the availability of private market reinsurance
2226	and coverage through the Florida Hurricane Catastrophe Fund, the
2227	general adequacy of the admitted market's current rates, and the
2228	capacity of the industry to offer policies to former Citizens
2229	Property Insurance Corporation policyholders within existing
2230	writing ratio limitations.
2231	(c)  The appropriate relationship of rates charged by
2232	Citizens Property Insurance Corporation to rates charged by
2233	private insurers, with due consideration for the corporation's
2234	role as a noncompetitive residual market mechanism.
2235	(d)  The relationships between the exposure of Citizens
2236	Property Insurance Corporation to catastrophic hurricane losses,
2237	the corporation's history of purchasing inadequate or no
2238	reinsurance coverage, and the corporation's lack of adequate
2239	capital to meet its potential claim obligations without
2240	incurring large deficits.
2241	(e)  The adverse effects on the people and the economy of
2242	this state of the large, multiyear deficit assessments by
2243	Citizens Property Insurance Corporation that may be levied on
2244	businesses and households in this state, and steps that can be
2245	taken to reduce those effects.
2246	(f)  The operational implications of the variation in the
2247	number of policies in force over time in Citizens Property
2248	Insurance Corporation and the merits of outsourcing some or all
2249	of its operational responsibilities.
2250	(g)  Changes in the mission and operations of Citizens
2251	Property Insurance Corporation to reduce or eliminate any
2252	adverse effect such mission and operations may be having on the
2253	promotion of sound and economic growth and development of the
2254	coastal areas of this state.
2255	(h)  Appropriate and consistent geographic boundaries of
2256	the high-risk account.
2257	(2)  The task force shall be composed of 19 members as
2258	follows:
2259	(a)  Three members appointed by the Speaker of the House of
2260	Representatives.
2261	(b)  Three members appointed by the President of the
2262	Senate.
2263	(c)  Four members appointed by the Governor who are not
2264	employed by or professionally affiliated with an insurance
2265	company or a subsidiary of an insurance company, at least two of
2266	whom must be consumer advocates or members of a consumer
2267	advocacy organization or agency.
2268	(d)  Nine members appointed as representatives of private
2269	insurance companies as follows:
2270	1.  Two members representing two separate insurance
2271	companies that each provide at least 150,000 homeowner's
2272	insurance policies in this state at the time of the creation of
2273	the task force.
2274	2.  Two members representing two separate insurance
2275	companies that each provide fewer than 150,000 homeowner's
2276	insurance policies in this state at the time of the creation of
2277	the task force.
2278	3.  Two members representing two separate insurance
2279	companies among the 10 insurance companies writing the greatest
2280	amount of commercial multiperil insurance premium in this state
2281	at the time of the creation of the task force.
2282	4.  Three members appointed by the Chief Financial Officer
2283	representing insurance agents in this state.
2284
2285	Of each pair of members appointed under subparagraphs 1., 2.,
2286	and 3., one shall be appointed by the President of the Senate
2287	and one by the Speaker of the House of Representatives.
2288	(3)  The task force shall conduct research, hold public
2289	meetings, receive testimony, employ consultants and
2290	administrative staff, and undertake other activities determined
2291	by its members to be necessary to complete its responsibilities.
2292	Citizens Property Insurance Corporation shall have appropriate
2293	senior staff attend task force meetings, shall respond to
2294	requests for testimony and data by the task force, shall
2295	otherwise cooperate with the task force, and shall provide
2296	funding for the necessary costs of implementing the provisions
2297	of this section.
2298	(4)  A member of the task force may not delegate his or her
2299	attendance or voting power to a designee.
2300	(5)  Members of the task force shall serve without
2301	compensation but are entitled to receive reimbursement for
2302	travel and per diem as provided in s. 112.061, Florida Statutes.
2303	(6)  The appointments to the task force must be completed
2304	within 30 calendar days after the effective date of this act,
2305	and the task force must hold its initial meeting within 1 month
2306	after appointment of all members. The task force shall expire no
2307	later than 60 calendar days after submission of the report
2308	required in subsection (1).
2309	Section 19.  Section 627.0621, Florida Statutes, is created
2310	to read:
2311	627.0621  Transparency in rate regulation.--
2312	(1)  DEFINITIONS.-As used in this section, the term:
2313	(a)  "Rate Filing" means any original or amended rate
2314	filing required or authorized under s. 627.062, s. 627.0651, or
2315	chapter 2007-1, Laws of Florida.
2316	(b)  "Recommendation" means any proposed, preliminary, or
2317	final recommendation from an office actuary reviewing a rate
2318	filing with respect to the issue of approval or disapproval of
2319	the rate filing or with respect to rate indications that the
2320	office would consider acceptable.
2321	(2)  WEBSITE FOR PUBLIC ACCESS TO RATE FILING
2322	INFORMATION.--With respect to any rate filing made on after July
2323	1, 2008, the office shall provide the following information on a
2324	publicly accessible Internet website:
2325	(a)  The overall rate change requested by the insurer.
2326	(b)  All assumptions made by the office's actuaries.
2327	(c)  A statement describing any assumptions or methods that
2328	deviate from the actuarial standards of practice of the Casualty
2329	Actuarial Society or the American Academy of Actuaries,
2330	including an explanation of the nature, rationale, and effect of
2331	the deviation.
2332	(d)  All recommendations made by any office actuary who
2333	reviewed the rate filing.
2334	(e)  Certification by the office's actuary under oath and
2335	subject to the penalty of perjury that, based on the actuary's
2336	knowledge, his or her recommendations did not contain any untrue
2337	statement of a material fact or omit to state a material fact
2338	necessary to make a recommendation and, in light of the
2339	circumstances under which such recommendation was made, was not
2340	misleading.
2341	(f)  The overall rate change approved by the office.
2342	(3)  ATTORNEY-CLIENT PRIVILEGE; WORK PRODUCT.--In any
2343	administrative or judicial proceeding relating to a rate filing,
2344	attorney-client privilege and work product exemptions from
2345	disclosure do not apply to communications, including
2346	communications with office attorneys or records prepared by or
2347	at the direction of an office attorney, except when conditions
2348	of paragraphs (a) and (b) have been met:
2349	(a)  The communication or record reflects a mental
2350	impression, conclusion, litigation strategy, or legal theory of
2351	the attorney or office.
2352	(b)  The communication or record was prepared after the
2353	initiation of an action in a court of competent jurisdiction or
2354	after the filing of a request for a proceeding under ss. 120.569
2355	and 120.57.
2356
2357	Work product privilege claims that do not meet the conditions of
2358	paragraphs (a) and (b) shall be deemed waived.
2359	Section 20.  Paragraph (b) of subsection (4) of section
2360	215.555, Florida Statutes, is amended to read:
2361	215.555  Florida Hurricane Catastrophe Fund.--
2362	(4)  REIMBURSEMENT CONTRACTS.--
2363	(b)1.  The contract shall contain a promise by the board to
2364	reimburse the insurer for 45 percent, 75 percent, or 90 percent
2365	of its losses from each covered event in excess of the insurer's
2366	retention, plus 5 percent of the reimbursed losses to cover loss
2367	adjustment expenses.
2368	2.  The insurer must elect one of the percentage coverage
2369	levels specified in this paragraph and may, upon renewal of a
2370	reimbursement contract, elect a lower percentage coverage level
2371	if no revenue bonds issued under subsection (6) after a covered
2372	event are outstanding, or elect a higher percentage coverage
2373	level, regardless of whether or not revenue bonds are
2374	outstanding. All members of an insurer group must elect the same
2375	percentage coverage level. Any joint underwriting association,
2376	risk apportionment plan, or other entity created under s.
2377	627.351 must elect the 90-percent coverage level.
2378	3.  The contract shall provide that reimbursement amounts
2379	shall not be reduced by reinsurance paid or payable to the
2380	insurer from other sources.
2381	4.  Notwithstanding any other provision contained in this
2382	section, the board shall make available to insurers that
2383	purchased coverage provided by this subparagraph in 2007 2006,
2384	insurers qualifying as limited apportionment companies under s.
2385	627.351(6)(c), and insurers that have been were approved to
2386	participate in 2006 or that are approved in 2007 for the
2387	Insurance Capital Build-Up Incentive Program pursuant to s.
2388	215.5595, a contract or contract addendum that provides an
2389	additional amount of reimbursement coverage of up to $10
2390	million. The premium to be charged for this additional
2391	reimbursement coverage shall be 50 percent of the additional
2392	reimbursement coverage provided, which shall include one prepaid
2393	reinstatement. The minimum retention level that an eligible
2394	participating insurer must retain associated with this
2395	additional coverage layer is 30 percent of the insurer's surplus
2396	as of December 31, 2007 2006. This coverage shall be in addition
2397	to all other coverage that may be provided under this section.
2398	The coverage provided by the fund under this subparagraph shall
2399	be in addition to the claims-paying capacity as defined in
2400	subparagraph (c)1., but only with respect to those insurers that
2401	select the additional coverage option and meet the requirements
2402	of this subparagraph. The claims-paying capacity with respect to
2403	all other participating insurers and limited apportionment
2404	companies that do not select the additional coverage option
2405	shall be limited to their reimbursement premium's proportionate
2406	share of the actual claims-paying capacity otherwise defined in
2407	subparagraph (c)1. and as provided for under the terms of the
2408	reimbursement contract. Coverage provided in the reimbursement
2409	contract shall will not be affected by the additional premiums
2410	paid by participating insurers exercising the additional
2411	coverage option allowed in this subparagraph. This subparagraph
2412	expires on May 31, 2009 2008.
2413	Section 21.  Subsections (1) and (2) of section 627.712,
2414	Florida Statutes, are amended to read:
2415	627.712  Residential windstorm coverage required;
2416	availability of exclusions for windstorm or contents.--
2417	(1)  An insurer issuing a residential property insurance
2418	policy must provide windstorm coverage. Except as provided in
2419	paragraph (2)(c), this section subsection does not apply with
2420	respect to risks that are eligible for wind-only coverage from
2421	Citizens Property Insurance Corporation under s. 627.351(6).
2422	(2)  A property insurer must make available, at the option
2423	of the policyholder, an exclusion of windstorm coverage.
2424	(a)  The coverage may be excluded only if:
2425	(a)1.  When the policyholder is a natural person, the
2426	policyholder personally writes and provides to the insurer the
2427	following statement in his or her own handwriting and signs his
2428	or her name, which must also be signed by every other named
2429	insured on the policy, and dated: "I do not want the insurance
2430	on my (home/mobile home/condominium unit) to pay for damage from
2431	windstorms. I will pay those costs. My insurance will not."
2432	2.  When the policyholder is other than a natural person,
2433	the policyholder provides to the insurer on the policyholder's
2434	letterhead the following statement that must be signed by the
2435	policyholder's authorized representative and dated: "  (Name of
2436	entity)   does not want the insurance on its   (type of
2437	structure)   to pay for damage from windstorms.   (Name of
2438	entity)   will be responsible for these costs.   (Name of
2439	entity's)   insurance will not."
2440	(b)  If the structure insured by the policy is subject to a
2441	mortgage or lien, the policyholder must provide the insurer with
2442	a written statement from the mortgageholder or lienholder
2443	indicating that the mortgageholder or lienholder approves the
2444	policyholder electing to exclude windstorm coverage or hurricane
2445	coverage from his or her or its property insurance policy.
2446	(c)  If the residential structure is eligible for wind-only
2447	coverage from Citizens Property Insurance Corporation, an
2448	insurer nonrenewing a policy and issuing a replacement policy,
2449	or issuing a new policy, that does not provide wind coverage
2450	shall provide a notice to the mortgageholder or lienholder
2451	indicating the policyholder has elected coverage that does not
2452	cover wind.
2453	Section 22.  Except as otherwise expressly provided in this
2454	act, this act shall take effect July 1, 2008.
2455
2456
2457
2458	-----------------------------------------------------
2459	T I T L E  A M E N D M E N T
2460	Remove the entire title and insert:
2461	A bill to be entitled
2462	An act relating to insurance; amending s. 215.5595, F.S.;
2463	revising legislative findings; providing for an appropriation of
2464	state funds in exchange for surplus notes issued by residential
2465	property insurers under the program; revising the conditions and
2466	requirements for providing funds to insurers under the program;
2467	requiring a commitment by the insurer to meet minimum premium-
2468	to-surplus writing ratios for residential property insurance and
2469	for taking policies out of Citizens Property Insurance
2470	Corporation; requiring insurers to commit to maintaining certain
2471	levels of surplus and reinsurance; authorizing the State Board
2472	of Administration to charge a fee for late payments; providing
2473	for payment of costs and fees incurred by the board in
2474	administering the program from funds appropriated to the
2475	program, subject to a specified limit; requiring the board to
2476	submit an annual report to the Legislature on the program and
2477	insurer compliance with certain requirements; providing that
2478	amendments made by the act do not affect the terms of surplus
2479	notes approved prior to a specified date; authorizing the State
2480	Board of Administration and an insurer to renegotiate such terms
2481	consistent with such amendments; amending s. 624.3161, F.S.;
2482	authorizing the Office of Insurance Regulation to require an
2483	insurer to file its claims handling practices and procedures as
2484	a public record based on findings of a market conduct
2485	examination; amending s. 624.4211, F.S.; increasing the maximum
2486	amounts of administrative fines that may be imposed upon an
2487	insurer by the Office of Insurance Regulation for nonwillful and
2488	willful violations of an order or rule of the office or any
2489	provision of the Florida Insurance Code; creating s. 624.4213,
2490	F.S.; specifying requirements for submission of a document or
2491	information to the Office of Insurance Regulation or the
2492	Department of Financial Services in order for a person to claim
2493	that the document is a trade secret; requiring each page or
2494	portion to be labeled as a trade secret and be separated from
2495	non-trade secret material; requiring the submitting party to
2496	include an affidavit certifying certain information about the
2497	documents claimed to be trade secrets; requiring the office or
2498	department to notify persons who submit trade secret documents
2499	of any public-records request and the opportunity to file a
2500	court action to bar disclosure; specifying conditions for the
2501	office to retain or release such documents; creating s.
2502	624.4305, F.S.; requiring that an insurer planning to nonrenew
2503	more than a specified number of residential property insurance
2504	polices notify the Office of Insurance Regulation and obtain
2505	approval for such nonrenewals; specifying procedures for
2506	issuance of such notice; amending s. 626.9521, F.S.; increasing
2507	the maximum fines that may be imposed by the office or
2508	department for nonwillful and willful violations of state law
2509	regarding unfair methods of competition and unfair or deceptive
2510	acts or practices related to insurance; amending s. 627.0612,
2511	F.S.; providing criteria for administrative hearings to
2512	determine whether an insurer's property insurance rates, rating
2513	manuals, premium credits, discount schedules, and surcharge
2514	schedules comply with the law; providing for entry of certain
2515	orders; amending s. 627.062, F.S.; revising the factors the
2516	office must consider in reviewing a rate filing; prohibiting the
2517	Office of Insurance Regulation from disapproving as excessive a
2518	rate solely because the insurer obtained reinsurance covering a
2519	specified probably maximum loss; allowing the office to
2520	disapprove a rate as excessive within 1 year after the rate has
2521	been approved under certain conditions related to nonrenewal of
2522	policies by the insurer; requiring the Division of
2523	Administrative Hearings to expedite a hearing request by an
2524	insurer and for the administrative law judge to commence the
2525	hearing within a specified time; authorizing an insurer to
2526	request an expedited appellate review pursuant to the Florida
2527	Rules of Appellate Procedure; expressing legislative intent for
2528	an expedited appellate review; revising provisions relating to
2529	the submission of a disputed rate filing, other than a rate
2530	filing for medical malpractice insurance, to an arbitration
2531	panel in lieu of an administrative hearing if the rate is filed
2532	before a specified date; amending s. 627.0628, F.S.; providing
2533	legislative findings relating to final agency action for
2534	insurance ratemaking; requiring that with respect to rate
2535	filings, insurers must use actuarial methods or models found to
2536	be accurate or reliable by the Florida Commission on Hurricane
2537	Loss Projection Methodology; providing for use of other models
2538	under certain circumstances; deleting the requirement for the
2539	Office of Insurance Regulation and the Consumer Advocate to have
2540	access to all assumptions of a hurricane loss model in order for
2541	a model that has been found to be accurate and reliable by the
2542	Florida Commission on Hurricane Loss Projection Methodology to
2543	be admissible in a rate proceeding; deleting cross-references to
2544	conform to changes made by the act; amending s. 627.0629, F.S.;
2545	requiring that the Office of Insurance Regulation develop and
2546	make publicly available before a specified deadline a proposed
2547	method for insurers to establish windstorm mitigation premium
2548	discounts that correlate to the uniform home rating scale;
2549	requiring that the Financial Services Commission adopt rules
2550	before a specified deadline; requiring insurers to make rate
2551	filings pursuant to such method; authorizing the commission to
2552	make changes by rule to the uniform home grading scale and
2553	specify by rule the minimum required discounts, credits, or
2554	other rate differentials; requiring that such rate differentials
2555	be consistent with generally accepted actuarial principles and
2556	wind loss mitigation studies; amending s. 627.351, F.S.,
2557	relating to Citizens Property Insurance Corporation; deleting
2558	provisions defining the terms "homestead property" and
2559	"nonhomestead property"; increasing threshold replacement costs
2560	of certain structures for eligibility for coverage by the
2561	corporation; deleting requirements for certain properties to
2562	meeting building code plus requirements as a condition of
2563	eligibility for coverage by the corporation; deleting outdated
2564	provisions requiring the corporation to submit a report for
2565	approval of offering multiperil coverage; revising threshold
2566	amounts of deficits incurred in a calendar year on which the
2567	decision to levy assessments and the types of such assessments
2568	are based; revising the formula used to calculate shares of
2569	assessments owed by certain assessable insureds; requiring that
2570	the board of governors make certain determinations before
2571	levying emergency assessments; providing the board of governors
2572	with discretion to set the amount of an emergency assessment
2573	within specified limits; requiring the board of governors to
2574	levy a Citizens policyholder surcharge under certain conditions;
2575	increasing the amount of the surcharge; deleting a provision
2576	requiring the levy of an immediate assessment against certain
2577	policyholders under such conditions; requiring that funds
2578	collected from the levy of such surcharges be used for certain
2579	purposes; providing that such surcharges are not considered
2580	premium and are not subject to commissions, fees, or premium
2581	taxes; requiring that the failure to pay such surcharges be
2582	treated as failure to pay premium; requiring that the amount of
2583	any assessment or surcharge which exceeds the amount of deficits
2584	be remitted to and used by the corporation for specified
2585	purposes; deleting provisions requiring that the plan of
2586	operation of the corporation provide for the levy of a Citizens
2587	policyholder surcharge if regular deficit assessments are levied
2588	as a result of deficits in certain accounts; deleting provisions
2589	related to the calculation, classification, and nonpayment of
2590	such surcharge; requiring that the corporation make an annual
2591	filing for each personal or commercial line of business it
2592	writes, beginning on a specified date; limiting the overall
2593	average statewide premium increase and the increase for an
2594	individual policyholder to a specified amount for rates
2595	established for certain policies during a specified period;
2596	deleting a provision requiring an insurer to purchase bonds that
2597	remain unsold;  deleting provisions requiring the corporation to
2598	make certain confidential underwriting and claims files
2599	available to agents to conform to changes made by the act
2600	relating to ineligibility of certain dwellings; clarifying the
2601	right of certain parties to discover underwriting and claims
2602	file records; authorizing the corporation to release such
2603	records as it deems necessary; requiring the corporation to
2604	report certain information to a consumer reporting agency;
2605	amending s. 627.4133, F.S.; requiring insurers to provide
2606	written notice of certain cancellations, nonrenewals, or
2607	terminations; creating s. 689.262, F.S.; requiring a purchaser
2608	of residential property to be presented with the windstorm
2609	mitigation rating of the structure; authorizing the Financial
2610	Services Commission to adopt rules; requiring Citizens Property
2611	Insurance Corporation to transfer funds to the General Revenue
2612	Fund if the losses due to a hurricane do not exceed a specified
2613	amount; requiring the board of governors of Citizens Property
2614	Insurance Corporation to make a reasonable estimate of such
2615	losses by a certain date; requiring the board to make quarterly
2616	transfers of funds to the corporation under certain
2617	circumstances; requiring the corporation to credit certain
2618	accounts for funds removed to make certain transfers;
2619	prohibiting Citizens Property Insurance Corporation from using
2620	certain statutory changes or authorized transfers of funds as
2621	justification or cause to seek any rate or assessment increase;
2622	amending s. 627.06281, F.S.; providing for residential property
2623	insurers to have access to and use a public hurricane loss
2624	projection model; requiring the office to establish a fee
2625	schedule for such model access and use; amending s. 627.0655,
2626	F.S.; expanding application of policyholder loss or expense-
2627	related premium discounts; creating the Citizens Property
2628	Insurance Corporation Mission Review Task Force; providing
2629	purposes; requiring a report; providing report requirements;
2630	providing for appointment of members; providing
2631	responsibilities; specifying service without compensation;
2632	providing for reimbursement of per diem and travel expenses;
2633	providing meeting requirements; requiring the corporation to
2634	assist the task force; providing for the expiration of the task
2635	force; requiring the Chief Financial Officer to provide a report
2636	on the economic impact on the state of certain hurricanes;
2637	providing report requirements; creating s. 627.0621, F.S.;
2638	providing requirements for transparency in rate regulation;
2639	providing definitions; providing for a website for public access
2640	to rate filing information; providing requirements; providing
2641	for application of public meeting requirements; specifying
2642	nonapplication of attorney-client or work-product privileges to
2643	certain communications in certain administrative or judicial
2644	proceedings under certain circumstances; specifying criteria;
2645	providing for waiver of such privileges under certain
2646	circumstances; amending s. 215.555, F.S.; extending for an
2647	additional year the offer of reimbursement coverage for
2648	specified insurers; revising the qualifying criteria for such
2649	insurers; revising provisions to conform; amending s. 627.712,
2650	F.S.; requiring insurers to provide notice to mortgageholders or
2651	lienholders of certain policies not providing wind coverage for
2652	certain structures; providing effective dates.
2653

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