CS/HB 1495

1	A bill to be entitled
2	An act relating to property and casualty insurance;
3	amending s. 215.47, F.S.; authorizing the State Board of
4	Administration to invest in certain revenue bonds under
5	certain circumstances; amending s. 215.555, F.S., relating
6	to the Florida Hurricane Catastrophe Fund; revising
7	reimbursement contract coverage payment provisions;
8	extending application of provisions relating to
9	reimbursement contracts; requiring a reimbursement premium
10	formula to provide cash build-up factors for certain
11	contract years; extending provisions relating to temporary
12	increase in coverage limit operations for the fund;
13	providing additional reimbursement requirements for
14	temporary increase in coverage addenda for additional
15	contract years; specifying required increases in TICL
16	reimbursement premiums for certain contract years;
17	specifying nonapplication of cash build-up factors to TICL
18	reimbursement premiums; deleting authority for the State
19	Board of Administration to increase the claims-paying
20	capacity of the fund; amending s. 215.5586, F.S., relating
21	to the My Safe Florida Home Program; revising legislative
22	intent; revising criteria for hurricane mitigation
23	inspections; revising criteria for eligibility for a
24	mitigation grant; expanding the list of improvements for
25	which grants may be used; deleting provisions relating to
26	no-interest loans; requiring that contracts valued at or
27	greater than a specified amount be subject to review and
28	approval by the Legislative Budget Commission; requiring
29	the Department of Financial Services to implement a
30	condominium mitigation loan program for certain purposes;
31	specifying program requirements; specifying an
32	administration requirement for the program; requiring the
33	department to adopt rules; amending s. 624.605, F.S.;
34	revising the definition of the term "casualty insurance"
35	to include certain debt cancellation products sold by
36	certain business entities; amending s. 626.854, F.S.;
37	extending a period during which a public adjuster is
38	prohibited from contacting or contracting with an insured
39	for certain purposes after certain events; prohibiting the
40	giving of referral fees, compensation, or anything of
41	value to public adjusters for referrals; requiring public
42	adjusters to provide an insurer with a recorded statement
43	and examination under oath under certain circumstances;
44	providing a limited purpose of such statement and
45	examination; amending s. 627.062, F.S.; extending
46	application of file and use filing requirements for
47	certain property insurance filings; prohibiting the Office
48	of Insurance Regulation from interfering with an insurer's
49	right to solicit, sell, promote, or otherwise acquire
50	policyholders and implement coverage; specifying that
51	certain rate filings are not subject to office
52	determination as excessive or unfairly discriminatory;
53	providing limitations; providing a definition; prohibiting
54	certain rate filings under certain circumstances;
55	preserving the office's authority to disapprove certain
56	rate filings under certain circumstances; providing
57	procedures for insurers submitting certain rate filings;
58	specifying nonapplication to certain types of insurance;
59	amending s. 627.0621, F.S.; deleting a limitation on the
60	application of the attorney-client privilege and work
61	product doctrine in challenges to actions by the office
62	relating to rate filings; amending s. 627.0628, F.S.;
63	requiring the Florida Commission on Hurricane Loss
64	Projection Methodology to hold public meetings for
65	purposes of implementing certain windstorm mitigation
66	discounts, credits, other rate differentials, and
67	deductible reductions; requiring a report to the Governor,
68	Cabinet, and Legislature; amending s. 627.0629, F.S.;
69	requiring certain hurricane mitigation measure discounts,
70	credits, and rate differentials to supersede certain other
71	discounts, credits, and rate differentials; authorizing
72	residential property insurers to include reinsurance costs
73	without certain TICL adjustments; amending s. 627.0655,
74	F.S.; discontinuing authorization for a premium discount
75	for a policyholder having multiple policies from Citizens
76	Property Insurance Corporation or a policy that has been
77	removed from the corporation by another insurer; amending
78	s. 627.351, F.S.; deleting application of certain personal
79	lines residential property insurance requirements for
80	wind-borne debris regions insured by the corporation;
81	revising the basis of a surcharge to offset an account
82	deficit; providing for members of the board of governors
83	of the corporation to serve staggered terms; providing
84	exceptions to actuarially sound rate requirements for the
85	corporation; providing legislative findings; requiring the
86	corporation to implement certain actuarially sound rates
87	for certain lines of business; providing limitations;
88	providing for cessation of certain rate increases upon
89	implementation of actuarially sound rates; requiring the
90	corporation to transfer certain funds from the rate
91	increase to the General Revenue Fund for a certain time;
92	deleting certain wind-only coverage maximum loss reporting
93	requirements; amending s. 627.711, F.S.; revising eligible
94	entities authorized to certify uniform mitigation
95	inspection forms; authorizing insurers to contract with
96	inspection firms to review certain verification forms and
97	reinspect properties for certain purposes; providing for
98	such contracts to be at the insurer's expense; providing a
99	criminal penalty for knowingly submitting a false or
100	fraudulent mitigation form with the intent to receive an
101	undeserved discount; amending s. 627.712, F.S.; providing
102	an additional exception to residential property insurance
103	windstorm coverage requirements for certain risks;
104	expanding a requirement that insurers notify
105	mortgageholders or lienholders of policyholder elections
106	for coverage not covering wind; amending s. 631.65, F.S.;
107	providing construction relating to certain prohibited
108	advertisements or solicitations; providing for
109	appropriation of certain transferred funds to the
110	Insurance Regulatory Trust Fund for certain purposes;
111	requiring the My Safe Florida Home Program to use certain
112	funds for certain mitigation grants; authorizing the
113	department to establish a separate account in the trust
114	fund for accounting purposes; providing an effective date.
115
116	Be It Enacted by the Legislature of the State of Florida:
117
118	Section 1.  Subsection (20) is added to section 215.47,
119	Florida Statutes, to read:
120	215.47  Investments; authorized securities; loan of
121	securities.--Subject to the limitations and conditions of the
122	State Constitution or of the trust agreement relating to a trust
123	fund, moneys available for investments under ss. 215.44-215.53
124	may be invested as follows:
125	(20)  The State Board of Administration may, consistent
126	with sound investment policy, invest in revenue bonds issued
127	pursuant to s. 215.555(6).
128	Section 2.  Paragraph (b) of subsection (4), paragraph (b)
129	of subsection (5), and subsection (17) of section 215.555,
130	Florida Statutes, are amended to read:
131	215.555  Florida Hurricane Catastrophe Fund.--
132	(4)  REIMBURSEMENT CONTRACTS.--
133	(b)1.  The contract shall contain a promise by the board to
134	reimburse the insurer for 45 percent, 75 percent, or 90 percent
135	of its losses from each covered event in excess of the insurer's
136	retention, plus 5 percent of the reimbursed losses to cover loss
137	adjustment expenses.
138	2.  The insurer must elect one of the percentage coverage
139	levels specified in this paragraph and may, upon renewal of a
140	reimbursement contract, elect a lower percentage coverage level
141	if no revenue bonds issued under subsection (6) after a covered
142	event are outstanding, or elect a higher percentage coverage
143	level, regardless of whether or not revenue bonds are
144	outstanding. All members of an insurer group must elect the same
145	percentage coverage level. Any joint underwriting association,
146	risk apportionment plan, or other entity created under s.
147	627.351 must elect the 90-percent coverage level.
148	3.  The contract shall provide that reimbursement amounts
149	shall not be reduced by reinsurance paid or payable to the
150	insurer from other sources.
151	4.  Notwithstanding any other provision contained in this
152	section, the board shall make available to insurers that
153	purchased coverage provided by this subparagraph in 2008 2007,
154	insurers qualifying as limited apportionment companies under s.
155	627.351(6)(c), and insurers that have been approved to
156	participate in the Insurance Capital Build-Up Incentive Program
157	pursuant to s. 215.5595 a contract or contract addendum that
158	provides an additional amount of reimbursement coverage of up to
159	$10 million. The premium to be charged for this additional
160	reimbursement coverage shall be 50 percent of the additional
161	reimbursement coverage provided, which shall include one prepaid
162	reinstatement. The minimum retention level that an eligible
163	participating insurer must retain associated with this
164	additional coverage layer is 30 percent of the insurer's surplus
165	as of December 31, 2008 2007. This coverage shall be paid as
166	soon as practicable after in addition to all other coverage that
167	may be provided under this section. The coverage provided by the
168	fund under this subparagraph shall be in addition to the claims-
169	paying capacity as defined in subparagraph (c)1., but only with
170	respect to those insurers that selected this select the
171	additional coverage option report such covered losses from a
172	covered event and meet the requirements of this subparagraph.
173	The claims-paying capacity with respect to all other
174	participating insurers and limited apportionment companies that
175	do not select the additional coverage option shall be limited to
176	their reimbursement premium's proportionate share of the actual
177	claims-paying capacity otherwise defined in subparagraph (c)1.
178	and as provided for under the terms of the reimbursement
179	contract. Coverage provided in the reimbursement contract shall
180	not be affected by the additional premiums paid by participating
181	insurers exercising the additional coverage option allowed in
182	this subparagraph. This subparagraph expires on December May 31,
183	2011 2009.
184	(5)  REIMBURSEMENT PREMIUMS.--
185	(b)  The State Board of Administration shall select an
186	independent consultant to develop a formula for determining the
187	actuarially indicated premium to be paid to the fund. The
188	formula shall specify, for each zip code or other limited
189	geographical area, the amount of premium to be paid by an
190	insurer for each $1,000 of insured value under covered policies
191	in that zip code or other area. In establishing premiums, the
192	board shall consider the coverage elected under paragraph (4)(b)
193	and any factors that tend to enhance the actuarial
194	sophistication of ratemaking for the fund, including
195	deductibles, type of construction, type of coverage provided,
196	relative concentration of risks, and other such factors deemed
197	by the board to be appropriate. The formula must provide for a
198	cash build-up factor. For the contract year 2009-2010, the
199	factor is 5 percent; for the contract year beginning June 1,
200	2010, and ending December 31, 2010, the factor is 10 percent;
201	for the 2011 contract year, the factor is 15 percent; for the
202	2012 contract year, the factor is 20 percent; and for the 2013
203	contract year and thereafter, the factor is 25 percent. The
204	formula may provide for a procedure to determine the premiums to
205	be paid by new insurers that begin writing covered policies
206	after the beginning of a contract year, taking into
207	consideration when the insurer starts writing covered policies,
208	the potential exposure of the insurer, the potential exposure of
209	the fund, the administrative costs to the insurer and to the
210	fund, and any other factors deemed appropriate by the board. The
211	formula must be approved by unanimous vote of the board. The
212	board may, at any time, revise the formula pursuant to the
213	procedure provided in this paragraph.
214	(17)  TEMPORARY INCREASE IN COVERAGE LIMIT OPTIONS.--
215	(a)  Findings and intent.--
216	1.  The Legislature finds that:
217	a.  Because of temporary disruptions in the market for
218	catastrophic reinsurance, many property insurers were unable to
219	procure sufficient amounts of reinsurance for the 2006 hurricane
220	season or were able to procure such reinsurance only by
221	incurring substantially higher costs than in prior years.
222	b.  The reinsurance market problems were responsible, at
223	least in part, for substantial premium increases to many
224	consumers and increases in the number of policies issued by
225	Citizens Property Insurance Corporation.
226	c.  It is likely that the reinsurance market disruptions
227	will not significantly abate prior to the 2007 hurricane season.
228	2.  It is the intent of the Legislature to create options
229	for insurers to purchase a temporary increased coverage limit
230	above the statutorily determined limit in subparagraph (4)(c)1.,
231	applicable for the 2007, 2008, and 2009, 2010, 2011, 2012, and
232	2013 hurricane seasons, to address market disruptions and enable
233	insurers, at their option, to procure additional coverage from
234	the Florida Hurricane Catastrophe Fund.
235	(b)  Applicability of other provisions of this
236	section.--All provisions of this section and the rules adopted
237	under this section apply to the coverage created by this
238	subsection unless specifically superseded by provisions in this
239	subsection.
240	(c)  Optional coverage.--For the contract year commencing
241	June 1, 2007, and ending May 31, 2008, the contract year
242	commencing June 1, 2008, and ending May 31, 2009, and the
243	contract year commencing June 1, 2009, and ending May 31, 2010,
244	the contract year commencing June 1, 2010, and ending December
245	31, 2010, the contract year commencing January 1, 2011, and
246	ending December 31, 2011, the contract year commencing January
247	1, 2012, and ending December 31, 2012, and the contract year
248	commencing January 1, 2013, and ending December 31, 2013, the
249	board shall offer, for each of such years, the optional coverage
250	as provided in this subsection.
251	(d)  Additional definitions.--As used in this subsection,
252	the term:
253	1.  "FHCF" means Florida Hurricane Catastrophe Fund.
254	2.  "FHCF reimbursement premium" means the premium paid by
255	an insurer for its coverage as a mandatory participant in the
256	FHCF, but does not include additional premiums for optional
257	coverages.
258	3.  "Payout multiple" means the number or multiple created
259	by dividing the statutorily defined claims-paying capacity as
260	determined in subparagraph (4)(c)1. by the aggregate
261	reimbursement premiums paid by all insurers estimated or
262	projected as of calendar year-end.
263	4.  "TICL" means the temporary increase in coverage limit.
264	5.  "TICL options" means the temporary increase in coverage
265	options created under this subsection.
266	6.  "TICL insurer" means an insurer that has opted to
267	obtain coverage under the TICL options addendum in addition to
268	the coverage provided to the insurer under its FHCF
269	reimbursement contract, but does not include Citizens Property
270	Insurance Corporation.
271	7.  "TICL reimbursement premium" means the premium charged
272	by the fund for coverage provided under the TICL option.
273	8.  "TICL coverage multiple" means the coverage multiple
274	when multiplied by an insurer's reimbursement premium that
275	defines the temporary increase in coverage limit.
276	9.  "TICL coverage" means the coverage for an insurer's
277	losses above the insurer's statutorily determined claims-paying
278	capacity based on the claims-paying limit in subparagraph
279	(4)(c)1., which an insurer selects as its temporary increase in
280	coverage from the fund under the TICL options selected. A TICL
281	insurer's increased coverage limit options shall be calculated
282	as follows:
283	a.  The board shall calculate and report to each TICL
284	insurer the TICL coverage multiples based on 12 options for
285	increasing the insurer's FHCF coverage limit. Each TICL coverage
286	multiple shall be calculated by dividing $1 billion, $2 billion,
287	$3 billion, $4 billion, $5 billion, $6 billion, $7 billion, $8
288	billion, $9 billion, $10 billion, $11 billion, or $12 billion by
289	the total estimated aggregate FHCF reimbursement premiums for
290	the 2007-2008 contract year and, the 2008-2009 contract year,
291	and the 2009-2010 contract year.
292	b.  For the 2009-2010 contract year, the board shall
293	calculate and report to each TICL insurer the TICL coverage
294	multiples based on 10 options for increasing the insurer's FHCF
295	coverage limit. Each TICL coverage multiple shall be calculated
296	by dividing $1 billion, $2 billion, $3 billion, $4 billion, $5
297	billion, $6 billion, $7 billion, $8 billion, $9 billion, and $10
298	billion by the total estimated aggregate FHCF reimbursement
299	premiums for the 2009-2010 contract year.
300	c.  For the contract year beginning June 1, 2010, and
301	ending December 31, 2010, the board shall calculate and report
302	to each TICL insurer the TICL coverage multiples based on eight
303	options for increasing the insurer's FHCF coverage limit. Each
304	TICL coverage multiple shall be calculated by dividing $1
305	billion, $2 billion, $3 billion, $4 billion, $5 billion, $6
306	billion, $7 billion, and $8 billion by the total estimated
307	aggregate FHCF reimbursement premiums for the contract year.
308	d.  For the 2011 contract year, the board shall calculate
309	and report to each TICL insurer the TICL coverage multiples
310	based on six options for increasing the insurer's FHCF coverage
311	limit. Each TICL coverage multiple shall be calculated by
312	dividing $1 billion, $2 billion, $3 billion, $4 billion, $5
313	billion, and $6 billion by the total estimated aggregate FHCF
314	reimbursement premiums for the 2011 contract year.
315	e.  For the 2012 contract year, the board shall calculate
316	and report to each TICL insurer the TICL coverage multiples
317	based on four options for increasing the insurer's FHCF coverage
318	limit. Each TICL coverage multiple shall be calculated by
319	dividing $1 billion, $2 billion, $3 billion, and $4 billion by
320	the total estimated aggregate FHCF reimbursement premiums for
321	the 2012 contract year.
322	f.  For the 2013 contract year, the board shall calculate
323	and report to each TICL insurer the TICL coverage multiples
324	based on two options for increasing the insurer's FHCF coverage
325	limit. Each TICL coverage multiple shall be calculated by
326	dividing $1 billion and $2 billion by the total estimated
327	aggregate FHCF reimbursement premiums for the 2013 contract
328	year.
329	g.b.  The TICL insurer's increased coverage shall be the
330	FHCF reimbursement premium multiplied by the TICL coverage
331	multiple. In order to determine an insurer's total limit of
332	coverage, an insurer shall add its TICL coverage multiple to its
333	payout multiple. The total shall represent a number that, when
334	multiplied by an insurer's FHCF reimbursement premium for a
335	given reimbursement contract year, defines an insurer's total
336	limit of FHCF reimbursement coverage for that reimbursement
337	contract year.
338	10.  "TICL options addendum" means an addendum to the
339	reimbursement contract reflecting the obligations of the fund
340	and insurers selecting an option to increase an insurer's FHCF
341	coverage limit.
342	(e)  TICL options addendum.--
343	1.  The TICL options addendum shall provide for
344	reimbursement of TICL insurers for covered events occurring
345	between June 1, 2007, and May 31, 2008, and between June 1,
346	2008, and May 31, 2009, or between June 1, 2009, and May 31,
347	2010, between June 1, 2010, and December 31, 2010, between
348	January 1, 2011, and December 31, 2011, between January 1, 2012,
349	and December 31, 2012, or between January 1, 2013, and December
350	31, 2013, in exchange for the TICL reimbursement premium paid
351	into the fund under paragraph (f). Any insurer writing covered
352	policies has the option of selecting an increased limit of
353	coverage under the TICL options addendum and shall select such
354	coverage at the time that it executes the FHCF reimbursement
355	contract.
356	2.a.  The TICL addendum for the contract year commencing
357	June 1, 2007, and ending May 31, 2008, or the contract year
358	commencing June 1, 2008, and ending May 31, 2009, shall contain
359	a promise by the board to reimburse the TICL insurer for 45
360	percent, 75 percent, or 90 percent of its losses from each
361	covered event in excess of the insurer's retention, plus 5
362	percent of the reimbursed losses to cover loss adjustment
363	expenses. The percentage shall be the same as the coverage level
364	selected by the insurer under paragraph (4)(b).
365	b.  The TICL addendum for the contract year commencing June
366	1, 2009, and ending May 31, 2010, shall contain a promise by the
367	board to reimburse the TICL insurer for 45 percent or 75 percent
368	of its losses from each covered event in excess of the insurer's
369	retention, plus 5 percent of the reimbursed losses to cover loss
370	adjustment expenses.
371	c.  The TICL addendum for the contract year commencing June
372	1, 2010, and ending December 31, 2010, shall contain a promise
373	by the board to reimburse the TICL insurer for 45 percent or 65
374	percent of its losses from each covered event in excess of the
375	insurer's retention, plus 5 percent of the reimbursed losses to
376	cover loss adjustment expenses.
377	d.  The TICL addendum for the contract year commencing
378	January 1, 2011, and ending December 31, 2011, shall contain a
379	promise by the board to reimburse the TICL insurer for 45
380	percent or 55 percent of its losses from each covered event in
381	excess of the insurer's retention, plus 5 percent of the
382	reimbursed losses to cover loss adjustment expenses.
383	e.  The TICL addendum for the contract year commencing
384	January 1, 2012, and ending December 31, 2012, shall contain a
385	promise by the board to reimburse the TICL insurer for 45
386	percent of its losses from each covered event in excess of the
387	insurer's retention, plus 5 percent of the reimbursed losses to
388	cover loss adjustment expenses.
389	f.  The TICL addendum for the contract year commencing
390	January 1, 2013, and ending December 31, 2013, shall contain a
391	promise by the board to reimburse the TICL insurer for 30
392	percent of its losses from each covered event in excess of the
393	insurer's retention, plus 5 percent of the reimbursed losses to
394	cover loss adjustment expenses.
395	3.  The TICL addendum shall provide that reimbursement
396	amounts shall not be reduced by reinsurance paid or payable to
397	the insurer from other sources.
398	4.  The priorities, schedule, and method of reimbursements
399	under the TICL addendum shall be the same as provided under
400	subsection (4).
401	(f)  TICL reimbursement premiums.--Each TICL insurer shall
402	pay to the fund, in the manner and at the time provided in the
403	reimbursement contract for payment of reimbursement premiums, a
404	TICL reimbursement premium determined as specified in subsection
405	(5), except that a cash build-up factor does not apply to the
406	TICL reimbursement premiums. However, the TICL reimbursement
407	premium shall be increased in contract year 2009-2010 by a
408	factor of two, in the contract year beginning June 1, 2010, and
409	ending December 31, 2010, by a factor of three, in the 2011
410	contract year by a factor of four, in the 2012 contract year by
411	a factor of five, and in the 2013 contract year by a factor of
412	six.
413	(g)  Effect on claims-paying capacity of the fund.--For the
414	contract terms commencing June 1, 2007, June 1, 2008, and June
415	1, 2009, June 1, 2010, January 1, 2011, January 1, 2012, and
416	January 1, 2013, the program created by this subsection shall
417	increase the claims-paying capacity of the fund as provided in
418	subparagraph (4)(c)1. by an amount not to exceed $12 billion and
419	shall depend on the TICL coverage options selected and the
420	number of insurers that select the TICL optional coverage. The
421	additional capacity shall apply only to the additional coverage
422	provided under the TICL options and shall not otherwise affect
423	any insurer's reimbursement from the fund if the insurer chooses
424	not to select the temporary option to increase its limit of
425	coverage under the FHCF.
426	(h)  Increasing the claims-paying capacity of the
427	fund.--For the contract years commencing June 1, 2007, June 1,
428	2008, and June 1, 2009, the board may increase the claims-paying
429	capacity of the fund as provided in paragraph (g) by an amount
430	not to exceed $4 billion in four $1 billion options and shall
431	depend on the TICL coverage options selected and the number of
432	insurers that select the TICL optional coverage. Each insurer's
433	TICL premium shall be calculated based upon the additional limit
434	of increased coverage that the insurer selects. Such limit is
435	determined by multiplying the TICL multiple associated with one
436	of the four options times the insurer's FHCF reimbursement
437	premium. The reimbursement premium associated with the
438	additional coverage provided in this paragraph shall be
439	determined as specified in subsection (5).
440	Section 3.  Section 215.5586, Florida Statutes, as amended
441	by section 1 of chapter 2009-10, Laws of Florida, is amended to
442	read:
443	215.5586  My Safe Florida Home Program.--There is
444	established within the Department of Financial Services the My
445	Safe Florida Home Program. The department shall provide fiscal
446	accountability, contract management, and strategic leadership
447	for the program, consistent with this section. This section does
448	not create an entitlement for property owners or obligate the
449	state in any way to fund the inspection or retrofitting of
450	residential property in this state. Implementation of this
451	program is subject to annual legislative appropriations. It is
452	the intent of the Legislature that the My Safe Florida Home
453	Program provide trained and certified inspectors to perform
454	inspections for owners of for at least 400,000 site-built,
455	single-family, residential properties and provide grants to
456	eligible at least 35,000 applicants as funding allows before
457	June 30, 2009. The program shall develop and implement a
458	comprehensive and coordinated approach for hurricane damage
459	mitigation that may shall include the following:
460	(1)  HURRICANE MITIGATION INSPECTIONS.--
461	(a)  Certified inspectors to provide free home-retrofit
462	inspections of site-built, single-family, residential property
463	may shall be offered throughout the state to determine what
464	mitigation measures are needed, what insurance premium discounts
465	may be available, and what improvements to existing residential
466	properties are needed to reduce the property's vulnerability to
467	hurricane damage. The Department of Financial Services shall
468	contract with wind certification entities to provide free
469	hurricane mitigation inspections. The inspections provided to
470	homeowners, at a minimum, must include:
471	1.  A home inspection and report that summarizes the
472	results and identifies recommended improvements a homeowner may
473	take to mitigate hurricane damage.
474	2.  A range of cost estimates regarding the recommended
475	mitigation improvements.
476	3.  Insurer-specific information regarding premium
477	discounts correlated to the current mitigation features and the
478	recommended mitigation improvements identified by the
479	inspection.
480	4.  A hurricane resistance rating scale specifying the
481	home's current as well as projected wind resistance
482	capabilities. As soon as practical, the rating scale must be the
483	uniform home grading scale adopted by the Financial Services
484	Commission pursuant to s. 215.55865.
485	(b)  To qualify for selection by the department as a wind
486	certification entity to provide hurricane mitigation
487	inspections, the entity shall, at a minimum, meet the following
488	requirements:
489	1.  Use hurricane mitigation inspectors who:
490	a.  Are certified as a building inspector under s. 468.607;
491	b.  Are licensed as a general or residential contractor
492	under s. 489.111;
493	c.  Are licensed as a professional engineer under s.
494	471.015 and who have passed the appropriate equivalency test of
495	the Building Code Training Program as required by s. 553.841;
496	d.  Are licensed as a professional architect under s.
497	481.213; or
498	e.  Have at least 2 years of experience in residential
499	construction or residential building inspection and have
500	received specialized training in hurricane mitigation
501	procedures. Such training may be provided by a class offered
502	online or in person.
503	2.  Use hurricane mitigation inspectors who also:
504	a.  Have undergone drug testing and level 2 background
505	checks pursuant to s. 435.04. The department may conduct
506	criminal record checks of inspectors used by wind certification
507	entities. Inspectors must submit a set of the fingerprints to
508	the department for state and national criminal history checks
509	and must pay the fingerprint processing fee set forth in s.
510	624.501. The fingerprints shall be sent by the department to the
511	Department of Law Enforcement and forwarded to the Federal
512	Bureau of Investigation for processing. The results shall be
513	returned to the department for screening. The fingerprints shall
514	be taken by a law enforcement agency, designated examination
515	center, or other department-approved entity; and
516	b.  Have been certified, in a manner satisfactory to the
517	department, to conduct the inspections.
518	3.  Provide a quality assurance program including a
519	reinspection component.
520	(c)  The department shall implement a quality assurance
521	program that includes a statistically valid number of
522	reinspections.
523	(d)  An application for an inspection must contain a signed
524	or electronically verified statement made under penalty of
525	perjury that the applicant has submitted only a single
526	application for that home.
527	(e)  The owner of a site-built, single-family, residential
528	property may apply for and receive an inspection without also
529	applying for a grant pursuant to subsection (2) and without
530	meeting the requirements of paragraph (2)(a).
531	(2)  MITIGATION GRANTS.--Financial grants shall be used to
532	encourage single-family, site-built, owner-occupied, residential
533	property owners to retrofit their properties to make them less
534	vulnerable to hurricane damage.
535	(a)  For a homeowner to be eligible for a grant, the
536	following criteria for persons who have obtained a completed
537	inspection after May 1, 2007, a residential property must be
538	met:
539	1.  The homeowner must have been granted a homestead
540	exemption on the home under chapter 196.
541	2.  The home must be a dwelling with an insured value of
542	$300,000 or less. Homeowners who are low-income persons, as
543	defined in s. 420.0004(10), are exempt from this requirement.
544	3.  The home must have undergone an acceptable hurricane
545	mitigation inspection after May 1, 2007.
546	4.  The home must be located in the "wind-borne debris
547	region" as that term is defined in s. 1609.2, International
548	Building Code (2006), or as subsequently amended.
549	5.  Be a home for which The building permit application for
550	initial construction of the home must have been was made before
551	March 1, 2002.
552
553	An application for a grant must contain a signed or
554	electronically verified statement made under penalty of perjury
555	that the applicant has submitted only a single application and
556	must have attached documents demonstrating the applicant meets
557	the requirements of this paragraph.
558	(b)  All grants must be matched on a dollar-for-dollar
559	basis up to for a total of $10,000 for the actual cost of the
560	mitigation project with the state's contribution not to exceed
561	$5,000.
562	(c)  The program shall create a process in which
563	contractors agree to participate and homeowners select from a
564	list of participating contractors. All mitigation must be based
565	upon the securing of all required local permits and inspections
566	and must be performed by properly licensed contractors.
567	Mitigation projects are subject to random reinspection of up to
568	at least 5 percent of all projects. Hurricane mitigation
569	inspectors qualifying for the program may also participate as
570	mitigation contractors as long as the inspectors meet the
571	department's qualifications and certification requirements for
572	mitigation contractors.
573	(d)  Matching fund grants shall also be made available to
574	local governments and nonprofit entities for projects that will
575	reduce hurricane damage to single-family, site-built, owner-
576	occupied, residential property. The department shall liberally
577	construe those requirements in favor of availing the state of
578	the opportunity to leverage funding for the My Safe Florida Home
579	Program with other sources of funding.
580	(e)  When recommended by a hurricane mitigation inspection,
581	grants may be used for the following improvements only:
582	1.  Opening protection.
583	2.  Exterior doors, including garage doors.
584	3.  Brace gable ends.
585	4.  Reinforcing roof-to-wall connections.
586	5.  Improving the strength of roof-deck attachments.
587	6.  Upgrading roof covering from code to code plus.
588	7.  Secondary water barrier for roof.
589
590	The department may require that improvements be made to all
591	openings, including exterior doors and garage doors, as a
592	condition of reimbursing a homeowner approved for a grant.
593	(f)  Grants may be used on a previously inspected existing
594	structure or on a rebuild. A rebuild is defined as a site-built,
595	single-family dwelling under construction to replace a home that
596	was destroyed or significantly damaged by a hurricane and deemed
597	unlivable by a regulatory authority. The homeowner must be a
598	low-income homeowner as defined in paragraph (g), must have had
599	a homestead exemption for that home prior to the hurricane, and
600	must be intending to rebuild the home as that homeowner's
601	homestead.
602	(g)  Low-income homeowners, as defined in s. 420.0004(10),
603	who otherwise meet the requirements of paragraphs (a), (c), (e),
604	and (f) are eligible for a grant of up to $5,000 and are not
605	required to provide a matching amount to receive the grant.
606	Additionally, for low-income homeowners, grant funding may be
607	used for repair to existing structures leading to any of the
608	mitigation improvements provided in paragraph (e), limited to 20
609	percent of the grant value. The program may accept a
610	certification directly from a low-income homeowner that the
611	homeowner meets the requirements of s. 420.0004(10) if the
612	homeowner provides such certification in a signed or
613	electronically verified statement made under penalty of perjury.
614	(h)  The department shall establish objective, reasonable
615	criteria for prioritizing grant applications, consistent with
616	the requirements of this section.
617	(i)  The department shall develop a process that ensures
618	the most efficient means to collect and verify grant
619	applications to determine eligibility and may direct hurricane
620	mitigation inspectors to collect and verify grant application
621	information or use the Internet or other electronic means to
622	collect information and determine eligibility.
623	(3)  EDUCATION AND CONSUMER AWARENESS.--The department may
624	undertake a statewide multimedia public outreach and advertising
625	campaign to inform consumers of the availability and benefits of
626	hurricane inspections and of the safety and financial benefits
627	of residential hurricane damage mitigation. The department may
628	seek out and use local, state, federal, and private funds to
629	support the campaign.
630	(4)  ADVISORY COUNCIL.--There is created an advisory
631	council to provide advice and assistance to the department
632	regarding administration of the program. The advisory council
633	shall consist of:
634	(a)  A representative of lending institutions, selected by
635	the Financial Services Commission from a list of at least three
636	persons recommended by the Florida Bankers Association.
637	(b)  A representative of residential property insurers,
638	selected by the Financial Services Commission from a list of at
639	least three persons recommended by the Florida Insurance
640	Council.
641	(c)  A representative of home builders, selected by the
642	Financial Services Commission from a list of at least three
643	persons recommended by the Florida Home Builders Association.
644	(d)  A faculty member of a state university, selected by
645	the Financial Services Commission, who is an expert in
646	hurricane-resistant construction methodologies and materials.
647	(e)  Two members of the House of Representatives, selected
648	by the Speaker of the House of Representatives.
649	(f)  Two members of the Senate, selected by the President
650	of the Senate.
651	(g)  The Chief Executive Officer of the Federal Alliance
652	for Safe Homes, Inc., or his or her designee.
653	(h)  The senior officer of the Florida Hurricane
654	Catastrophe Fund.
655	(i)  The executive director of Citizens Property Insurance
656	Corporation.
657	(j)  The director of the Division of Emergency Management
658	of the Department of Community Affairs.
659
660	Members appointed under paragraphs (a)-(d) shall serve at the
661	pleasure of the Financial Services Commission. Members appointed
662	under paragraphs (e) and (f) shall serve at the pleasure of the
663	appointing officer. All other members shall serve as voting ex
664	officio members. Members of the advisory council shall serve
665	without compensation but may receive reimbursement as provided
666	in s. 112.061 for per diem and travel expenses incurred in the
667	performance of their official duties.
668	(5)  FUNDING.--The department may seek out and leverage
669	local, state, federal, or private funds to enhance the financial
670	resources of the program.
671	(6)  RULES.--The Department of Financial Services shall
672	adopt rules pursuant to ss. 120.536(1) and 120.54 to govern the
673	program; implement the provisions of this section; including
674	rules governing hurricane mitigation inspections and grants,
675	mitigation contractors, and training of inspectors and
676	contractors; and carry out the duties of the department under
677	this section.
678	(7)  HURRICANE MITIGATION INSPECTOR LIST.--The department
679	shall develop and maintain as a public record a current list of
680	hurricane mitigation inspectors authorized to conduct hurricane
681	mitigation inspections pursuant to this section.
682	(8)  NO-INTEREST LOANS.--The department shall implement a
683	no-interest loan program by October 1, 2008, contingent upon the
684	selection of a qualified vendor and execution of a contract
685	acceptable to the department and the vendor. The department
686	shall enter into partnerships with the private sector to provide
687	loans to owners of site-built, single-family, residential
688	property to pay for mitigation measures listed in subsection
689	(2). A loan eligible for interest payments pursuant to this
690	subsection may be for a term of up to 3 years and cover up to
691	$5,000 in mitigation measures. The department shall pay the
692	creditor the market rate of interest using funds appropriated
693	for the My Safe Florida Home Program. In no case shall the
694	department pay more than the interest rate set by s. 687.03. To
695	be eligible for a loan, a loan applicant must first obtain a
696	home inspection and report that specifies what improvements are
697	needed to reduce the property's vulnerability to windstorm
698	damage pursuant to this section and meet loan underwriting
699	requirements set by the lender. The department may adopt rules
700	pursuant to ss. 120.536(1) and 120.54 to implement this
701	subsection which may include eligibility criteria.
702	(8)(9)  PUBLIC OUTREACH FOR CONTRACTORS AND REAL ESTATE
703	BROKERS AND SALES ASSOCIATES.--The program shall develop
704	brochures for distribution to general contractors, roofing
705	contractors, and real estate brokers and sales associates
706	licensed under part I of chapter 475 explaining the benefits to
707	homeowners of residential hurricane damage mitigation. The
708	program shall encourage contractors to distribute the brochures
709	to homeowners at the first meeting with a homeowner who is
710	considering contracting for home or roof repairs or contracting
711	for the construction of a new home. The program shall encourage
712	real estate brokers and sales associates licensed under part I
713	of chapter 475 to distribute the brochures to clients prior to
714	the purchase of a home. The brochures may be made available
715	electronically.
716	(9)(10)  CONTRACT MANAGEMENT.--The department may contract
717	with third parties for grants management, inspection services,
718	contractor services for low-income homeowners, information
719	technology, educational outreach, and auditing services. Such
720	contracts shall be considered direct costs of the program and
721	shall not be subject to administrative cost limits, but
722	contracts valued at $1 million $500,000 or more shall be subject
723	to review and approval by the Legislative Budget Commission. The
724	department shall contract with providers that have a
725	demonstrated record of successful business operations in areas
726	directly related to the services to be provided and shall ensure
727	the highest accountability for use of state funds, consistent
728	with this section.
729	(10)(11)  INTENT.--It is the intent of the Legislature that
730	grants made to residential property owners under this section
731	shall be considered disaster-relief assistance within the
732	meaning of s. 139 of the Internal Revenue Code of 1986, as
733	amended.
734	(11)(12)  REPORTS.--The department shall make an annual
735	report on the activities of the program that shall account for
736	the use of state funds and indicate the number of inspections
737	requested, the number of inspections performed, the number of
738	grant applications received, and the number and value of grants
739	approved. The report shall be delivered to the President of the
740	Senate and the Speaker of the House of Representatives by
741	February 1 of each year.
742	(12)  CONDOMINIUM MITIGATION LOAN PROGRAM.--
743	(a)  The department may implement a condominium mitigation
744	loan program to assist condominiums in mitigating all units in
745	their structure against wind damage. The program shall have the
746	following minimum requirements:
747	1.  The department shall contract with lenders to offer
748	hurricane mitigation loan subsidies equal to a competitive rate
749	of interest on a loan balance of up to $5,000 per condominium
750	unit for 3 years. The interest subsidy may be paid in advance by
751	the department to a lender participating in the program.
752	2.  The loans must be used to purchase or install hurricane
753	mitigation measures identified in paragraph (2)(e).
754	3.  A participating condominium association must agree to
755	purchase and install approved mitigation measures for 100
756	percent of the units in the condominium structure that lack the
757	approved mitigation measures.
758	4.  To be eligible, a condominium must have been permitted
759	for construction on or before March 1, 2002, be located in the
760	wind-borne debris region, and be insured by Citizens Property
761	Insurance Corporation.
762	5.  Condominiums of more than 200 units are not eligible
763	for the loan program.
764	6.  The department may contract with third parties for
765	auditing and related services to ensure accountability and
766	program quality.
767	(b)  The loan program shall be administered on a first-
768	come, first-served basis.
769	(c)  The department shall adopt rules pursuant to ss.
770	120.536(1) and 120.54 to implement the loan program.
771	Section 4.  Paragraph (r) of subsection (1) of section
772	624.605, Florida Statutes, is amended to read:
773	624.605  "Casualty insurance" defined.--
774	(1)  "Casualty insurance" includes:
775	(r)  Insurance for debt cancellation products.--Insurance
776	that a creditor may purchase against the risk of financial loss
777	from the use of debt cancellation products with consumer loans
778	or leases or retail installment contracts. Insurance for debt
779	cancellation products is not liability insurance but shall be
780	considered credit insurance only for the purposes of s.
781	631.52(4).
782	1.  For purposes of this paragraph, the term "debt
783	cancellation products" means loan, lease, or retail installment
784	contract terms, or modifications to loan, lease, or retail
785	installment contracts, under which a creditor agrees to cancel
786	or suspend all or part of a customer's obligation to make
787	payments upon the occurrence of specified events and includes,
788	but is not limited to, debt cancellation contracts, debt
789	suspension agreements, and guaranteed asset protection
790	contracts. However, the term "debt cancellation products" does
791	not include title insurance as defined in s. 624.608.
792	2.  Debt cancellation products may be offered by financial
793	institutions, as defined in s. 655.005(1)(h), insured depository
794	institutions, as defined in 12 U.S.C. s. 1813(c), and
795	subsidiaries of such institutions, as provided in the financial
796	institutions codes, or by other business entities selling a
797	product that may be goods, services, or real property and
798	interests in real property, the sale of which product is
799	regulated by an agency of the state and when the extension of
800	credit is offered in connection with the purchase of such
801	product. as may be specifically authorized by law, and Such debt
802	cancellation products shall not constitute insurance for
803	purposes of the Florida Insurance Code.
804	Section 5.  Section 626.854, Florida Statutes, is amended
805	to read:
806	626.854  "Public adjuster" defined; prohibitions.--The
807	Legislature finds that it is necessary for the protection of the
808	public to regulate public insurance adjusters and to prevent the
809	unauthorized practice of law.
810	(1)  A "public adjuster" is any person, except a duly
811	licensed attorney at law as hereinafter in s. 626.860 provided,
812	who, for money, commission, or any other thing of value,
813	prepares, completes, or files an insurance claim form for an
814	insured or third-party claimant or who, for money, commission,
815	or any other thing of value, acts or aids in any manner on
816	behalf of an insured or third-party claimant in negotiating for
817	or effecting the settlement of a claim or claims for loss or
818	damage covered by an insurance contract or who advertises for
819	employment as an adjuster of such claims, and also includes any
820	person who, for money, commission, or any other thing of value,
821	solicits, investigates, or adjusts such claims on behalf of any
822	such public adjuster.
823	(2)  This definition does not apply to:
824	(a)  A licensed health care provider or employee thereof
825	who prepares or files a health insurance claim form on behalf of
826	a patient.
827	(b)  A person who files a health claim on behalf of another
828	and does so without compensation.
829	(3)  A public adjuster may not give legal advice. A public
830	adjuster may not act on behalf of or aid any person in
831	negotiating or settling a claim relating to bodily injury,
832	death, or noneconomic damages.
833	(4)  For purposes of this section, the term "insured"
834	includes only the policyholder and any beneficiaries named or
835	similarly identified in the policy.
836	(5)  A public adjuster may not directly or indirectly
837	through any other person or entity solicit an insured or
838	claimant by any means except on Monday through Saturday of each
839	week and only between the hours of 8 a.m. and 8 p.m. on those
840	days.
841	(6)  A public adjuster may not directly or indirectly
842	through any other person or entity initiate contact or engage in
843	face-to-face or telephonic solicitation or enter into a contract
844	with any insured or claimant under an insurance policy until at
845	least 20 days 48 hours after the occurrence of an event that may
846	be the subject of a claim under the insurance policy unless
847	contact is initiated by the insured or claimant.
848	(7)  An insured or claimant may cancel a public adjuster's
849	contract to adjust a claim without penalty or obligation within
850	3 business days after the date on which the contract is executed
851	or within 3 business days after the date on which the insured or
852	claimant has notified the insurer of the claim, by phone or in
853	writing, whichever is later. The public adjuster's contract
854	shall disclose to the insured or claimant his or her right to
855	cancel the contract and advise the insured or claimant that
856	notice of cancellation must be submitted in writing and sent by
857	certified mail, return receipt requested, or other form of
858	mailing which provides proof thereof, to the public adjuster at
859	the address specified in the contract; provided, during any
860	state of emergency as declared by the Governor and for a period
861	of 1 year after the date of loss, the insured or claimant shall
862	have 5 business days after the date on which the contract is
863	executed to cancel a public adjuster's contract.
864	(8)  It is an unfair and deceptive insurance trade practice
865	pursuant to s. 626.9541 for a public adjuster or any other
866	person to circulate or disseminate any advertisement,
867	announcement, or statement containing any assertion,
868	representation, or statement with respect to the business of
869	insurance which is untrue, deceptive, or misleading.
870	(9)  A public adjuster, a public adjuster apprentice, or
871	any person or entity acting on behalf of a public adjuster or
872	public adjuster apprentice may not give or offer to give a
873	monetary loan or advance to a client or prospective client.
874	(10)  A public adjuster, public adjuster apprentice, or any
875	individual or entity acting on behalf of a public adjuster or
876	public adjuster apprentice may not give or offer to give,
877	directly or indirectly, any article of merchandise having a
878	value in excess of $25 to any individual for the purpose of
879	advertising or as an inducement to entering into a contract with
880	a public adjuster.
881	(11)(a)  If a public adjuster enters into a contract with
882	an insured or claimant to reopen a claim or to file a
883	supplemental claim that seeks additional payments for a claim
884	that has been previously paid in part or in full or settled by
885	the insurer, the public adjuster may not charge, agree to, or
886	accept any compensation, payment, commission, fee, or other
887	thing of value based on a previous settlement or previous claim
888	payments by the insurer for the same cause of loss. The charge,
889	compensation, payment, commission, fee, or other thing of value
890	may be based only on the claim payments or settlement obtained
891	through the work of the public adjuster after entering into the
892	contract with the insured or claimant. The contracts described
893	in this paragraph are not subject to the limitations in
894	paragraph (b).
895	(b)  A public adjuster may not charge, agree to, or accept
896	any compensation, payment, commission, fee, or other thing of
897	value in excess of:
898	1.  Ten percent of the amount of insurance claim payments
899	by the insurer for claims based on events that are the subject
900	of a declaration of a state of emergency by the Governor. This
901	provision applies to claims made during the period of 1 year
902	after the declaration of emergency.
903	2.  Twenty percent of the amount of all other insurance
904	claim payments.
905	(12)  Each public adjuster shall provide to the claimant or
906	insured a written estimate of the loss to assist in the
907	submission of a proof of loss or any other claim for payment of
908	insurance proceeds. The public adjuster shall retain such
909	written estimate for at least 5 years and shall make such
910	estimate available to the claimant or insured and the department
911	upon request.
912	(13)  A public adjuster, a public adjuster apprentice, and
913	any person or entity acting on behalf of the public adjuster may
914	not provide a referral fee, compensation, or anything of value
915	to any individual or entity that refers any client or potential
916	client to the public adjuster.
917	(14)  A public adjuster shall provide a recorded statement
918	and examination under oath upon a request by the insurer after
919	reasonable notice to the public adjuster. The purpose of such
920	statement and examination is limited to providing the insurer
921	with such information as may be reasonably necessary to evaluate
922	the factual basis and validity of a claim and the public
923	adjuster's actions related to the claim.
924
925	The provisions of subsections (5)-(13) (5)-(12) apply only to
926	residential property insurance policies and condominium
927	association policies as defined in s. 718.111(11).
928	Section 6.  Paragraphs (a) and (i) of subsection (2) of
929	section 627.062, Florida Statutes, are amended, and paragraph
930	(k) is added to that subsection, to read:
931	627.062  Rate standards.--
932	(2)  As to all such classes of insurance:
933	(a)  Insurers or rating organizations shall establish and
934	use rates, rating schedules, or rating manuals to allow the
935	insurer a reasonable rate of return on such classes of insurance
936	written in this state. A copy of rates, rating schedules, rating
937	manuals, premium credits or discount schedules, and surcharge
938	schedules, and changes thereto, shall be filed with the office
939	under one of the following procedures except as provided in
940	subparagraph 3.:
941	1.  If the filing is made at least 90 days before the
942	proposed effective date and the filing is not implemented during
943	the office's review of the filing and any proceeding and
944	judicial review, then such filing shall be considered a "file
945	and use" filing. In such case, the office shall finalize its
946	review by issuance of a notice of intent to approve or a notice
947	of intent to disapprove within 90 days after receipt of the
948	filing. The notice of intent to approve and the notice of intent
949	to disapprove constitute agency action for purposes of the
950	Administrative Procedure Act. Requests for supporting
951	information, requests for mathematical or mechanical
952	corrections, or notification to the insurer by the office of its
953	preliminary findings shall not toll the 90-day period during any
954	such proceedings and subsequent judicial review. The rate shall
955	be deemed approved if the office does not issue a notice of
956	intent to approve or a notice of intent to disapprove within 90
957	days after receipt of the filing.
958	2.  If the filing is not made in accordance with the
959	provisions of subparagraph 1., such filing shall be made as soon
960	as practicable, but no later than 30 days after the effective
961	date, and shall be considered a "use and file" filing. An
962	insurer making a "use and file" filing is potentially subject to
963	an order by the office to return to policyholders portions of
964	rates found to be excessive, as provided in paragraph (h).
965	3.  For all property insurance filings made or submitted
966	after January 25, 2007, but before December 31, 2010 2009, an
967	insurer seeking a rate that is greater than the rate most
968	recently approved by the office shall make a "file and use"
969	filing. For purposes of this subparagraph, motor vehicle
970	collision and comprehensive coverages are not considered to be
971	property coverages.
972	(i)  Except as otherwise specifically provided in this
973	chapter, the office shall not prohibit any insurer, including
974	any residual market plan or joint underwriting association, from
975	paying acquisition costs based on the full amount of premium, as
976	defined in s. 627.403, applicable to any policy, or prohibit any
977	such insurer from including the full amount of acquisition costs
978	in a rate filing. Unless specifically authorized by law, the
979	office shall not interfere, directly or indirectly, with an
980	insurer's right to solicit, sell, promote, or otherwise acquire
981	policyholders and implement coverage using its own lawful
982	methodologies, systems, agents, and approaches, including the
983	calculation, manner, or amount of agent commissions, if any.
984	(k)  Effective January 1, 2010, notwithstanding any other
985	provision of this section:
986	1.  With respect to any residential property insurance
987	subject to regulation under this section, a rate filing,
988	including, but not limited to, any rate changes, rating factors,
989	territories, classifications, discounts, and credits, with
990	respect to any policy form, including endorsements issued with
991	the form, that results in an overall average statewide premium
992	increase or decrease of no more than 10 percent above or below
993	the premium that would result from the insurer's rates then in
994	effect shall not be subject to a determination by the office
995	that the rate is excessive or unfairly discriminatory, except as
996	provided in subparagraph 3. or any other provision of law,
997	provided all changes specified in the filing do not result in an
998	overall premium increase of more than 15 percent for any one
999	territory for reasons related solely to the rate change. As used
1000	in this subparagraph, the term "insurer's rates then in effect"
1001	includes only rates that have been lawfully in effect under this
1002	section or rates that have been determined to be lawful through
1003	administrative proceedings or judicial proceedings.
1004	2.  An insurer may not make filings under this paragraph
1005	with respect to any policy form, including endorsements issued
1006	with the form, if the overall premium changes resulting from
1007	such filings exceed the amounts specified in this paragraph in
1008	any 12-month period. An insurer may proceed under other
1009	provisions of this section or other provisions of the laws of
1010	this state if the insurer seeks to exceed the premium or rate
1011	limitations of this paragraph.
1012	3.  This paragraph does not affect the authority of the
1013	office to disapprove a rate as inadequate or to disapprove a
1014	filing for the unlawful use of unfairly discriminatory rating
1015	factors that are prohibited by the laws of this state. An
1016	insurer electing to implement a rate change under this paragraph
1017	shall submit a filing to the office at least 30 days prior to
1018	the effective date of the rate change. The office shall have 30
1019	days after the filing's submission to review the filing and
1020	determine if the rate is inadequate or uses unfairly
1021	discriminatory rating factors. Absent a finding by the office
1022	within such 30-day period that the rate is inadequate or that
1023	the insurer has used unfairly discriminatory rating factors, the
1024	filing is deemed approved. If the insurer is implementing an
1025	overall rate decrease and the office finds during the 30-day
1026	period that the filing will result in inadequate premiums or
1027	otherwise endanger the insurer's solvency, the office shall
1028	suspend the rate decrease. If the insurer is implementing an
1029	overall rate increase the results of which continue to produce
1030	an inadequate rate, such increase shall proceed pending
1031	additional action by the office to ensure the adequacy of the
1032	rate.
1033	4.  This paragraph does not apply to rate filings for any
1034	insurance other than residential property insurance.
1035
1036	The provisions of this subsection shall not apply to workers'
1037	compensation and employer's liability insurance and to motor
1038	vehicle insurance.
1039	Section 7.  Section 627.0621, Florida Statutes, as amended
1040	by section 82 of chapter 2009-21, Laws of Florida, is amended to
1041	read:
1042	627.0621  Transparency in rate regulation.--
1043	(1)  DEFINITIONS.--As used in this section, the term:
1044	(a)  "Rate filing" means any original or amended rate
1045	residential property insurance filing.
1046	(b)  "Recommendation" means any proposed, preliminary, or
1047	final recommendation from an office actuary reviewing a rate
1048	filing with respect to the issue of approval or disapproval of
1049	the rate filing or with respect to rate indications that the
1050	office would consider acceptable.
1051	(2)  WEBSITE FOR PUBLIC ACCESS TO RATE FILING
1052	INFORMATION.--With respect to any rate filing made on or after
1053	July 1, 2008, the office shall provide the following information
1054	on a publicly accessible Internet website:
1055	(a)  The overall rate change requested by the insurer.
1056	(b)  All assumptions made by the office's actuaries.
1057	(c)  A statement describing any assumptions or methods that
1058	deviate from the actuarial standards of practice of the Casualty
1059	Actuarial Society or the American Academy of Actuaries,
1060	including an explanation of the nature, rationale, and effect of
1061	the deviation.
1062	(d)  All recommendations made by any office actuary who
1063	reviewed the rate filing.
1064	(e)  Certification by the office's actuary that, based on
1065	the actuary's knowledge, his or her recommendations are
1066	consistent with accepted actuarial principles.
1067	(f)  The overall rate change approved by the office.
1068	(3)  ATTORNEY-CLIENT PRIVILEGE; WORK PRODUCT.--It is the
1069	intent of the Legislature that the principles of the public
1070	records and open meetings laws apply to the assertion of
1071	attorney-client privilege and work product confidentiality by
1072	the office in connection with a challenge to its actions on a
1073	rate filing. Therefore, in any administrative or judicial
1074	proceeding relating to a rate filing, attorney-client privilege
1075	and work product exemptions from disclosure do not apply to
1076	communications with office attorneys or records prepared by or
1077	at the direction of an office attorney, except when the
1078	conditions of paragraphs (a) and (b) have been met:
1079	(a)  The communication or record reflects a mental
1080	impression, conclusion, litigation strategy, or legal theory of
1081	the attorney or office that was prepared exclusively for civil
1082	or criminal litigation or adversarial administrative
1083	proceedings.
1084	(b)  The communication occurred or the record was prepared
1085	after the initiation of an action in a court of competent
1086	jurisdiction, after the issuance of a notice of intent to deny a
1087	rate filing, or after the filing of a request for a proceeding
1088	under ss. 120.569 and 120.57.
1089	Section 8.  Subsection (4) is added to section 627.0628,
1090	Florida Statutes, to read:
1091	627.0628  Florida Commission on Hurricane Loss Projection
1092	Methodology; public records exemption; public meetings
1093	exemption.--
1094	(4)  REVIEW OF DISCOUNTS, CREDITS, OTHER RATE
1095	DIFFERENTIALS, AND REDUCTIONS IN DEDUCTIBLES RELATING TO
1096	WINDSTORM MITIGATION.--The commission shall hold public meetings
1097	for the purpose of receiving testimony and data regarding the
1098	implementation of windstorm mitigation discounts, credits, other
1099	rate differentials, and appropriate reductions in deductibles
1100	pursuant to s. 627.0629. After reviewing the testimony and data
1101	as well as any other information the commission deems
1102	appropriate, the commission shall present a report by October 1,
1103	2009, to the Governor, the Cabinet, the President of the Senate,
1104	and the Speaker of the House of Representatives, including
1105	recommendations on improving the process of assessing,
1106	determining, and applying windstorm mitigation discounts,
1107	credits, other rate differentials, and appropriate reductions in
1108	deductibles pursuant to s. 627.0629.
1109	Section 9.  Paragraph (b) of subsection (1) and subsection
1110	(5) of section 627.0629, Florida Statutes, are amended to read:
1111	627.0629  Residential property insurance; rate filings.--
1112	(1)
1113	(b)  By February 1, 2011, the Office of Insurance
1114	Regulation, in consultation with the Department of Financial
1115	Services and the Department of Community Affairs, shall develop
1116	and make publicly available a proposed method for insurers to
1117	establish discounts, credits, or other rate differentials for
1118	hurricane mitigation measures which directly correlate to the
1119	numerical rating assigned to a structure pursuant to the uniform
1120	home grading scale adopted by the Financial Services Commission
1121	pursuant to s. 215.55865, including any proposed changes to the
1122	uniform home grading scale. By October 1, 2011, the commission
1123	shall adopt rules requiring insurers to make rate filings for
1124	residential property insurance which revise insurers' discounts,
1125	credits, or other rate differentials for hurricane mitigation
1126	measures so that such rate differentials correlate directly to
1127	the uniform home grading scale. The rules may include such
1128	changes to the uniform home grading scale as the commission
1129	determines are necessary, and may specify the minimum required
1130	discounts, credits, or other rate differentials. Such rate
1131	differentials must be consistent with generally accepted
1132	actuarial principles and wind-loss mitigation studies. The rules
1133	shall allow a period of at least 2 years after the effective
1134	date of the revised mitigation discounts, credits, or other rate
1135	differentials for a property owner to obtain an inspection or
1136	otherwise qualify for the revised credit, during which time the
1137	insurer shall continue to apply the mitigation credit that was
1138	applied immediately prior to the effective date of the revised
1139	credit. Discounts, credits, and other rate differentials
1140	established for rate filings under this paragraph shall
1141	supersede, after adoption, the discounts, credits, and other
1142	rate differentials included in rate filings under paragraph (a).
1143	(5)  In order to provide an appropriate transition period,
1144	an insurer may, in its sole discretion, implement an approved
1145	rate filing for residential property insurance over a period of
1146	years. An insurer electing to phase in its rate filing must
1147	provide an informational notice to the office setting out its
1148	schedule for implementation of the phased-in rate filing. An
1149	insurer may include in its rate the actual cost of reinsurance
1150	without the addition of an expense or profit load for the
1151	insurer that duplicates coverage of the temporary increase in
1152	coverage limit (TICL) available from the Florida Hurricane
1153	Catastrophe Fund, even if the insurer does not purchase the TICL
1154	coverage, to the extent the total annual base rate increase does
1155	not exceed 10 percent as a result of such inclusion.
1156	Section 10.  Section 627.0655, Florida Statutes, is amended
1157	to read:
1158	627.0655  Policyholder loss or expense-related premium
1159	discounts.--An insurer or person authorized to engage in the
1160	business of insurance in this state may include, in the premium
1161	charged an insured for any policy, contract, or certificate of
1162	insurance, a discount based on the fact that another policy,
1163	contract, or certificate of any type has been purchased by the
1164	insured from the same insurer or insurer group, or, for policies
1165	issued or renewed before January 1, 2010, from the Citizens
1166	Property Insurance Corporation created under s. 627.351(6) if
1167	the same insurance agent is servicing both policies, or for
1168	policies issued or renewed before January 1, 2010, from an
1169	insurer that has removed the policy from the Citizens Property
1170	Insurance Corporation if the same insurance agent is servicing
1171	both policies.
1172	Section 11.  Paragraphs (y) through (ee) of subsection (6)
1173	of section 627.351, Florida Statutes, are redesignated as
1174	paragraphs (x) through (dd), respectively, and paragraphs (a),
1175	(b), (c), and (m) and present paragraph (x) of that subsection
1176	are amended to read:
1177	627.351  Insurance risk apportionment plans.--
1178	(6)  CITIZENS PROPERTY INSURANCE CORPORATION.--
1179	(a)1.  It is the public purpose of this subsection to
1180	ensure the existence of an orderly market for property insurance
1181	for Floridians and Florida businesses. The Legislature finds
1182	that private insurers are unwilling or unable to provide
1183	affordable property insurance coverage in this state to the
1184	extent sought and needed. The absence of affordable property
1185	insurance threatens the public health, safety, and welfare and
1186	likewise threatens the economic health of the state. The state
1187	therefore has a compelling public interest and a public purpose
1188	to assist in assuring that property in the state is insured and
1189	that it is insured at affordable rates so as to facilitate the
1190	remediation, reconstruction, and replacement of damaged or
1191	destroyed property in order to reduce or avoid the negative
1192	effects otherwise resulting to the public health, safety, and
1193	welfare, to the economy of the state, and to the revenues of the
1194	state and local governments which are needed to provide for the
1195	public welfare. It is necessary, therefore, to provide
1196	affordable property insurance to applicants who are in good
1197	faith entitled to procure insurance through the voluntary market
1198	but are unable to do so. The Legislature intends by this
1199	subsection that affordable property insurance be provided and
1200	that it continue to be provided, as long as necessary, through
1201	Citizens Property Insurance Corporation, a government entity
1202	that is an integral part of the state, and that is not a private
1203	insurance company. To that end, Citizens Property Insurance
1204	Corporation shall strive to increase the availability of
1205	affordable property insurance in this state, while achieving
1206	efficiencies and economies, and while providing service to
1207	policyholders, applicants, and agents which is no less than the
1208	quality generally provided in the voluntary market, for the
1209	achievement of the foregoing public purposes. Because it is
1210	essential for this government entity to have the maximum
1211	financial resources to pay claims following a catastrophic
1212	hurricane, it is the intent of the Legislature that Citizens
1213	Property Insurance Corporation continue to be an integral part
1214	of the state and that the income of the corporation be exempt
1215	from federal income taxation and that interest on the debt
1216	obligations issued by the corporation be exempt from federal
1217	income taxation.
1218	2.  The Residential Property and Casualty Joint
1219	Underwriting Association originally created by this statute
1220	shall be known, as of July 1, 2002, as the Citizens Property
1221	Insurance Corporation. The corporation shall provide insurance
1222	for residential and commercial property, for applicants who are
1223	in good faith entitled, but are unable, to procure insurance
1224	through the voluntary market. The corporation shall operate
1225	pursuant to a plan of operation approved by order of the
1226	Financial Services Commission. The plan is subject to continuous
1227	review by the commission. The commission may, by order, withdraw
1228	approval of all or part of a plan if the commission determines
1229	that conditions have changed since approval was granted and that
1230	the purposes of the plan require changes in the plan. The
1231	corporation shall continue to operate pursuant to the plan of
1232	operation approved by the Office of Insurance Regulation until
1233	October 1, 2006. For the purposes of this subsection,
1234	residential coverage includes both personal lines residential
1235	coverage, which consists of the type of coverage provided by
1236	homeowner's, mobile home owner's, dwelling, tenant's,
1237	condominium unit owner's, and similar policies, and commercial
1238	lines residential coverage, which consists of the type of
1239	coverage provided by condominium association, apartment
1240	building, and similar policies.
1241	3.  Effective January 1, 2009, a personal lines residential
1242	structure that has a dwelling replacement cost of $2 million or
1243	more, or a single condominium unit that has a combined dwelling
1244	and content replacement cost of $2 million or more is not
1245	eligible for coverage by the corporation. Such dwellings insured
1246	by the corporation on December 31, 2008, may continue to be
1247	covered by the corporation until the end of the policy term.
1248	However, such dwellings that are insured by the corporation and
1249	become ineligible for coverage due to the provisions of this
1250	subparagraph may reapply and obtain coverage if the property
1251	owner provides the corporation with a sworn affidavit from one
1252	or more insurance agents, on a form provided by the corporation,
1253	stating that the agents have made their best efforts to obtain
1254	coverage and that the property has been rejected for coverage by
1255	at least one authorized insurer and at least three surplus lines
1256	insurers. If such conditions are met, the dwelling may be
1257	insured by the corporation for up to 3 years, after which time
1258	the dwelling is ineligible for coverage. The office shall
1259	approve the method used by the corporation for valuing the
1260	dwelling replacement cost for the purposes of this subparagraph.
1261	If a policyholder is insured by the corporation prior to being
1262	determined to be ineligible pursuant to this subparagraph and
1263	such policyholder files a lawsuit challenging the determination,
1264	the policyholder may remain insured by the corporation until the
1265	conclusion of the litigation.
1266	4.  It is the intent of the Legislature that policyholders,
1267	applicants, and agents of the corporation receive service and
1268	treatment of the highest possible level but never less than that
1269	generally provided in the voluntary market. It also is intended
1270	that the corporation be held to service standards no less than
1271	those applied to insurers in the voluntary market by the office
1272	with respect to responsiveness, timeliness, customer courtesy,
1273	and overall dealings with policyholders, applicants, or agents
1274	of the corporation.
1275	5.  Effective January 1, 2009, a personal lines residential
1276	structure that is located in the "wind-borne debris region," as
1277	defined in s. 1609.2, International Building Code (2006), and
1278	that has an insured value on the structure of $750,000 or more
1279	is not eligible for coverage by the corporation unless the
1280	structure has opening protections as required under the Florida
1281	Building Code for a newly constructed residential structure in
1282	that area. A residential structure shall be deemed to comply
1283	with the requirements of this subparagraph if it has shutters or
1284	opening protections on all openings and if such opening
1285	protections complied with the Florida Building Code at the time
1286	they were installed. Effective January 1, 2010, for personal
1287	lines residential property insured by the corporation that is
1288	located in the wind-borne debris region and has an insured value
1289	on the structure of $500,000 or more, a prospective purchaser of
1290	any such residential property must be provided by the seller a
1291	written disclosure that contains the structure's windstorm
1292	mitigation rating based on the uniform home grading scale
1293	adopted under s. 215.55865. Such rating shall be provided to the
1294	purchaser at or before the time the purchaser executes a
1295	contract for sale and purchase.
1296	(b)1.  All insurers authorized to write one or more subject
1297	lines of business in this state are subject to assessment by the
1298	corporation and, for the purposes of this subsection, are
1299	referred to collectively as "assessable insurers." Insurers
1300	writing one or more subject lines of business in this state
1301	pursuant to part VIII of chapter 626 are not assessable
1302	insurers, but insureds who procure one or more subject lines of
1303	business in this state pursuant to part VIII of chapter 626 are
1304	subject to assessment by the corporation and are referred to
1305	collectively as "assessable insureds." An authorized insurer's
1306	assessment liability shall begin on the first day of the
1307	calendar year following the year in which the insurer was issued
1308	a certificate of authority to transact insurance for subject
1309	lines of business in this state and shall terminate 1 year after
1310	the end of the first calendar year during which the insurer no
1311	longer holds a certificate of authority to transact insurance
1312	for subject lines of business in this state.
1313	2.a.  All revenues, assets, liabilities, losses, and
1314	expenses of the corporation shall be divided into three separate
1315	accounts as follows:
1316	(I)  A personal lines account for personal residential
1317	policies issued by the corporation or issued by the Residential
1318	Property and Casualty Joint Underwriting Association and renewed
1319	by the corporation that provide comprehensive, multiperil
1320	coverage on risks that are not located in areas eligible for
1321	coverage in the Florida Windstorm Underwriting Association as
1322	those areas were defined on January 1, 2002, and for such
1323	policies that do not provide coverage for the peril of wind on
1324	risks that are located in such areas;
1325	(II)  A commercial lines account for commercial residential
1326	and commercial nonresidential policies issued by the corporation
1327	or issued by the Residential Property and Casualty Joint
1328	Underwriting Association and renewed by the corporation that
1329	provide coverage for basic property perils on risks that are not
1330	located in areas eligible for coverage in the Florida Windstorm
1331	Underwriting Association as those areas were defined on January
1332	1, 2002, and for such policies that do not provide coverage for
1333	the peril of wind on risks that are located in such areas; and
1334	(III)  A high-risk account for personal residential
1335	policies and commercial residential and commercial
1336	nonresidential property policies issued by the corporation or
1337	transferred to the corporation that provide coverage for the
1338	peril of wind on risks that are located in areas eligible for
1339	coverage in the Florida Windstorm Underwriting Association as
1340	those areas were defined on January 1, 2002. The corporation may
1341	offer policies that provide multiperil coverage and the
1342	corporation shall continue to offer policies that provide
1343	coverage only for the peril of wind for risks located in areas
1344	eligible for coverage in the high-risk account. In issuing
1345	multiperil coverage, the corporation may use its approved policy
1346	forms and rates for the personal lines account. An applicant or
1347	insured who is eligible to purchase a multiperil policy from the
1348	corporation may purchase a multiperil policy from an authorized
1349	insurer without prejudice to the applicant's or insured's
1350	eligibility to prospectively purchase a policy that provides
1351	coverage only for the peril of wind from the corporation. An
1352	applicant or insured who is eligible for a corporation policy
1353	that provides coverage only for the peril of wind may elect to
1354	purchase or retain such policy and also purchase or retain
1355	coverage excluding wind from an authorized insurer without
1356	prejudice to the applicant's or insured's eligibility to
1357	prospectively purchase a policy that provides multiperil
1358	coverage from the corporation. It is the goal of the Legislature
1359	that there would be an overall average savings of 10 percent or
1360	more for a policyholder who currently has a wind-only policy
1361	with the corporation, and an ex-wind policy with a voluntary
1362	insurer or the corporation, and who then obtains a multiperil
1363	policy from the corporation. It is the intent of the Legislature
1364	that the offer of multiperil coverage in the high-risk account
1365	be made and implemented in a manner that does not adversely
1366	affect the tax-exempt status of the corporation or
1367	creditworthiness of or security for currently outstanding
1368	financing obligations or credit facilities of the high-risk
1369	account, the personal lines account, or the commercial lines
1370	account. The high-risk account must also include quota share
1371	primary insurance under subparagraph (c)2. The area eligible for
1372	coverage under the high-risk account also includes the area
1373	within Port Canaveral, which is bordered on the south by the
1374	City of Cape Canaveral, bordered on the west by the Banana
1375	River, and bordered on the north by Federal Government property.
1376	b.  The three separate accounts must be maintained as long
1377	as financing obligations entered into by the Florida Windstorm
1378	Underwriting Association or Residential Property and Casualty
1379	Joint Underwriting Association are outstanding, in accordance
1380	with the terms of the corresponding financing documents. When
1381	the financing obligations are no longer outstanding, in
1382	accordance with the terms of the corresponding financing
1383	documents, the corporation may use a single account for all
1384	revenues, assets, liabilities, losses, and expenses of the
1385	corporation. Consistent with the requirement of this
1386	subparagraph and prudent investment policies that minimize the
1387	cost of carrying debt, the board shall exercise its best efforts
1388	to retire existing debt or to obtain approval of necessary
1389	parties to amend the terms of existing debt, so as to structure
1390	the most efficient plan to consolidate the three separate
1391	accounts into a single account. By February 1, 2007, the board
1392	shall submit a report to the Financial Services Commission, the
1393	President of the Senate, and the Speaker of the House of
1394	Representatives which includes an analysis of consolidating the
1395	accounts, the actions the board has taken to minimize the cost
1396	of carrying debt, and its recommendations for executing the most
1397	efficient plan.
1398	c.  Creditors of the Residential Property and Casualty
1399	Joint Underwriting Association and of the accounts specified in
1400	sub-sub-subparagraphs a.(I) and (II) may have a claim against,
1401	and recourse to, the accounts referred to in sub-sub-
1402	subparagraphs a.(I) and (II) and shall have no claim against, or
1403	recourse to, the account referred to in sub-sub-subparagraph
1404	a.(III). Creditors of the Florida Windstorm Underwriting
1405	Association shall have a claim against, and recourse to, the
1406	account referred to in sub-sub-subparagraph a.(III) and shall
1407	have no claim against, or recourse to, the accounts referred to
1408	in sub-sub-subparagraphs a.(I) and (II).
1409	d.  Revenues, assets, liabilities, losses, and expenses not
1410	attributable to particular accounts shall be prorated among the
1411	accounts.
1412	e.  The Legislature finds that the revenues of the
1413	corporation are revenues that are necessary to meet the
1414	requirements set forth in documents authorizing the issuance of
1415	bonds under this subsection.
1416	f.  No part of the income of the corporation may inure to
1417	the benefit of any private person.
1418	3.  With respect to a deficit in an account:
1419	a.  After accounting for the Citizens policyholder
1420	surcharge imposed under sub-subparagraph i., when the remaining
1421	projected deficit incurred in a particular calendar year is not
1422	greater than 6 percent of the aggregate statewide direct written
1423	premium for the subject lines of business for the prior calendar
1424	year, the entire deficit shall be recovered through regular
1425	assessments of assessable insurers under paragraph (p) and
1426	assessable insureds.
1427	b.  After accounting for the Citizens policyholder
1428	surcharge imposed under sub-subparagraph i., when the remaining
1429	projected deficit incurred in a particular calendar year exceeds
1430	6 percent of the aggregate statewide direct written premium for
1431	the subject lines of business for the prior calendar year, the
1432	corporation shall levy regular assessments on assessable
1433	insurers under paragraph (p) and on assessable insureds in an
1434	amount equal to the greater of 6 percent of the deficit or 6
1435	percent of the aggregate statewide direct written premium for
1436	the subject lines of business for the prior calendar year. Any
1437	remaining deficit shall be recovered through emergency
1438	assessments under sub-subparagraph d.
1439	c.  Each assessable insurer's share of the amount being
1440	assessed under sub-subparagraph a. or sub-subparagraph b. shall
1441	be in the proportion that the assessable insurer's direct
1442	written premium for the subject lines of business for the year
1443	preceding the assessment bears to the aggregate statewide direct
1444	written premium for the subject lines of business for that year.
1445	The assessment percentage applicable to each assessable insured
1446	is the ratio of the amount being assessed under sub-subparagraph
1447	a. or sub-subparagraph b. to the aggregate statewide direct
1448	written premium for the subject lines of business for the prior
1449	year. Assessments levied by the corporation on assessable
1450	insurers under sub-subparagraphs a. and b. shall be paid as
1451	required by the corporation's plan of operation and paragraph
1452	(p). Assessments levied by the corporation on assessable
1453	insureds under sub-subparagraphs a. and b. shall be collected by
1454	the surplus lines agent at the time the surplus lines agent
1455	collects the surplus lines tax required by s. 626.932 and shall
1456	be paid to the Florida Surplus Lines Service Office at the time
1457	the surplus lines agent pays the surplus lines tax to the
1458	Florida Surplus Lines Service Office. Upon receipt of regular
1459	assessments from surplus lines agents, the Florida Surplus Lines
1460	Service Office shall transfer the assessments directly to the
1461	corporation as determined by the corporation.
1462	d.  Upon a determination by the board of governors that a
1463	deficit in an account exceeds the amount that will be recovered
1464	through regular assessments under sub-subparagraph a. or sub-
1465	subparagraph b., plus the amount that is expected to be
1466	recovered through surcharges under sub-subparagraph i., as to
1467	the remaining projected deficit the board shall levy, after
1468	verification by the office, emergency assessments, for as many
1469	years as necessary to cover the deficits, to be collected by
1470	assessable insurers and the corporation and collected from
1471	assessable insureds upon issuance or renewal of policies for
1472	subject lines of business, excluding National Flood Insurance
1473	policies. The amount of the emergency assessment collected in a
1474	particular year shall be a uniform percentage of that year's
1475	direct written premium for subject lines of business and all
1476	accounts of the corporation, excluding National Flood Insurance
1477	Program policy premiums, as annually determined by the board and
1478	verified by the office. The office shall verify the arithmetic
1479	calculations involved in the board's determination within 30
1480	days after receipt of the information on which the determination
1481	was based. Notwithstanding any other provision of law, the
1482	corporation and each assessable insurer that writes subject
1483	lines of business shall collect emergency assessments from its
1484	policyholders without such obligation being affected by any
1485	credit, limitation, exemption, or deferment. Emergency
1486	assessments levied by the corporation on assessable insureds
1487	shall be collected by the surplus lines agent at the time the
1488	surplus lines agent collects the surplus lines tax required by
1489	s. 626.932 and shall be paid to the Florida Surplus Lines
1490	Service Office at the time the surplus lines agent pays the
1491	surplus lines tax to the Florida Surplus Lines Service Office.
1492	The emergency assessments so collected shall be transferred
1493	directly to the corporation on a periodic basis as determined by
1494	the corporation and shall be held by the corporation solely in
1495	the applicable account. The aggregate amount of emergency
1496	assessments levied for an account under this sub-subparagraph in
1497	any calendar year may, at the discretion of the board of
1498	governors, be less than but may not exceed the greater of 10
1499	percent of the amount needed to cover the deficit, plus
1500	interest, fees, commissions, required reserves, and other costs
1501	associated with financing of the original deficit, or 10 percent
1502	of the aggregate statewide direct written premium for subject
1503	lines of business and for all accounts of the corporation for
1504	the prior year, plus interest, fees, commissions, required
1505	reserves, and other costs associated with financing the deficit.
1506	e.  The corporation may pledge the proceeds of assessments,
1507	projected recoveries from the Florida Hurricane Catastrophe
1508	Fund, other insurance and reinsurance recoverables, policyholder
1509	surcharges and other surcharges, and other funds available to
1510	the corporation as the source of revenue for and to secure bonds
1511	issued under paragraph (p), bonds or other indebtedness issued
1512	under subparagraph (c)3., or lines of credit or other financing
1513	mechanisms issued or created under this subsection, or to retire
1514	any other debt incurred as a result of deficits or events giving
1515	rise to deficits, or in any other way that the board determines
1516	will efficiently recover such deficits. The purpose of the lines
1517	of credit or other financing mechanisms is to provide additional
1518	resources to assist the corporation in covering claims and
1519	expenses attributable to a catastrophe. As used in this
1520	subsection, the term "assessments" includes regular assessments
1521	under sub-subparagraph a., sub-subparagraph b., or subparagraph
1522	(p)1. and emergency assessments under sub-subparagraph d.
1523	Emergency assessments collected under sub-subparagraph d. are
1524	not part of an insurer's rates, are not premium, and are not
1525	subject to premium tax, fees, or commissions; however, failure
1526	to pay the emergency assessment shall be treated as failure to
1527	pay premium. The emergency assessments under sub-subparagraph d.
1528	shall continue as long as any bonds issued or other indebtedness
1529	incurred with respect to a deficit for which the assessment was
1530	imposed remain outstanding, unless adequate provision has been
1531	made for the payment of such bonds or other indebtedness
1532	pursuant to the documents governing such bonds or other
1533	indebtedness.
1534	f.  As used in this subsection for purposes of any deficit
1535	incurred on or after January 25, 2007, the term "subject lines
1536	of business" means insurance written by assessable insurers or
1537	procured by assessable insureds for all property and casualty
1538	lines of business in this state, but not including workers'
1539	compensation or medical malpractice. As used in the sub-
1540	subparagraph, the term "property and casualty lines of business"
1541	includes all lines of business identified on Form 2, Exhibit of
1542	Premiums and Losses, in the annual statement required of
1543	authorized insurers by s. 624.424 and any rule adopted under
1544	this section, except for those lines identified as accident and
1545	health insurance and except for policies written under the
1546	National Flood Insurance Program or the Federal Crop Insurance
1547	Program. For purposes of this sub-subparagraph, the term
1548	"workers' compensation" includes both workers' compensation
1549	insurance and excess workers' compensation insurance.
1550	g.  The Florida Surplus Lines Service Office shall
1551	determine annually the aggregate statewide written premium in
1552	subject lines of business procured by assessable insureds and
1553	shall report that information to the corporation in a form and
1554	at a time the corporation specifies to ensure that the
1555	corporation can meet the requirements of this subsection and the
1556	corporation's financing obligations.
1557	h.  The Florida Surplus Lines Service Office shall verify
1558	the proper application by surplus lines agents of assessment
1559	percentages for regular assessments and emergency assessments
1560	levied under this subparagraph on assessable insureds and shall
1561	assist the corporation in ensuring the accurate, timely
1562	collection and payment of assessments by surplus lines agents as
1563	required by the corporation.
1564	i.  If a deficit is incurred in any account in 2008 or
1565	thereafter, the board of governors shall levy a Citizens
1566	policyholder surcharge against all policyholders of the
1567	corporation for a 12-month period, which shall be collected at
1568	the time of issuance or renewal of a policy, as a uniform
1569	percentage of the premium for the policy of up to 25 15 percent
1570	of such premium, which funds shall be used to offset the
1571	deficit. Citizens policyholder surcharges under this sub-
1572	subparagraph are not considered premium and are not subject to
1573	commissions, fees, or premium taxes. However, failure to pay
1574	such surcharges shall be treated as failure to pay premium.
1575	j.  If the amount of any assessments or surcharges
1576	collected from corporation policyholders, assessable insurers or
1577	their policyholders, or assessable insureds exceeds the amount
1578	of the deficits, such excess amounts shall be remitted to and
1579	retained by the corporation in a reserve to be used by the
1580	corporation, as determined by the board of governors and
1581	approved by the office, to pay claims or reduce any past,
1582	present, or future plan-year deficits or to reduce outstanding
1583	debt.
1584	(c)  The plan of operation of the corporation:
1585	1.  Must provide for adoption of residential property and
1586	casualty insurance policy forms and commercial residential and
1587	nonresidential property insurance forms, which forms must be
1588	approved by the office prior to use. The corporation shall adopt
1589	the following policy forms:
1590	a.  Standard personal lines policy forms that are
1591	comprehensive multiperil policies providing full coverage of a
1592	residential property equivalent to the coverage provided in the
1593	private insurance market under an HO-3, HO-4, or HO-6 policy.
1594	b.  Basic personal lines policy forms that are policies
1595	similar to an HO-8 policy or a dwelling fire policy that provide
1596	coverage meeting the requirements of the secondary mortgage
1597	market, but which coverage is more limited than the coverage
1598	under a standard policy.
1599	c.  Commercial lines residential and nonresidential policy
1600	forms that are generally similar to the basic perils of full
1601	coverage obtainable for commercial residential structures and
1602	commercial nonresidential structures in the admitted voluntary
1603	market.
1604	d.  Personal lines and commercial lines residential
1605	property insurance forms that cover the peril of wind only. The
1606	forms are applicable only to residential properties located in
1607	areas eligible for coverage under the high-risk account referred
1608	to in sub-subparagraph (b)2.a.
1609	e.  Commercial lines nonresidential property insurance
1610	forms that cover the peril of wind only. The forms are
1611	applicable only to nonresidential properties located in areas
1612	eligible for coverage under the high-risk account referred to in
1613	sub-subparagraph (b)2.a.
1614	f.  The corporation may adopt variations of the policy
1615	forms listed in sub-subparagraphs a.-e. that contain more
1616	restrictive coverage.
1617	2.a.  Must provide that the corporation adopt a program in
1618	which the corporation and authorized insurers enter into quota
1619	share primary insurance agreements for hurricane coverage, as
1620	defined in s. 627.4025(2)(a), for eligible risks, and adopt
1621	property insurance forms for eligible risks which cover the
1622	peril of wind only. As used in this subsection, the term:
1623	(I)  "Quota share primary insurance" means an arrangement
1624	in which the primary hurricane coverage of an eligible risk is
1625	provided in specified percentages by the corporation and an
1626	authorized insurer. The corporation and authorized insurer are
1627	each solely responsible for a specified percentage of hurricane
1628	coverage of an eligible risk as set forth in a quota share
1629	primary insurance agreement between the corporation and an
1630	authorized insurer and the insurance contract. The
1631	responsibility of the corporation or authorized insurer to pay
1632	its specified percentage of hurricane losses of an eligible
1633	risk, as set forth in the quota share primary insurance
1634	agreement, may not be altered by the inability of the other
1635	party to the agreement to pay its specified percentage of
1636	hurricane losses. Eligible risks that are provided hurricane
1637	coverage through a quota share primary insurance arrangement
1638	must be provided policy forms that set forth the obligations of
1639	the corporation and authorized insurer under the arrangement,
1640	clearly specify the percentages of quota share primary insurance
1641	provided by the corporation and authorized insurer, and
1642	conspicuously and clearly state that neither the authorized
1643	insurer nor the corporation may be held responsible beyond its
1644	specified percentage of coverage of hurricane losses.
1645	(II)  "Eligible risks" means personal lines residential and
1646	commercial lines residential risks that meet the underwriting
1647	criteria of the corporation and are located in areas that were
1648	eligible for coverage by the Florida Windstorm Underwriting
1649	Association on January 1, 2002.
1650	b.  The corporation may enter into quota share primary
1651	insurance agreements with authorized insurers at corporation
1652	coverage levels of 90 percent and 50 percent.
1653	c.  If the corporation determines that additional coverage
1654	levels are necessary to maximize participation in quota share
1655	primary insurance agreements by authorized insurers, the
1656	corporation may establish additional coverage levels. However,
1657	the corporation's quota share primary insurance coverage level
1658	may not exceed 90 percent.
1659	d.  Any quota share primary insurance agreement entered
1660	into between an authorized insurer and the corporation must
1661	provide for a uniform specified percentage of coverage of
1662	hurricane losses, by county or territory as set forth by the
1663	corporation board, for all eligible risks of the authorized
1664	insurer covered under the quota share primary insurance
1665	agreement.
1666	e.  Any quota share primary insurance agreement entered
1667	into between an authorized insurer and the corporation is
1668	subject to review and approval by the office. However, such
1669	agreement shall be authorized only as to insurance contracts
1670	entered into between an authorized insurer and an insured who is
1671	already insured by the corporation for wind coverage.
1672	f.  For all eligible risks covered under quota share
1673	primary insurance agreements, the exposure and coverage levels
1674	for both the corporation and authorized insurers shall be
1675	reported by the corporation to the Florida Hurricane Catastrophe
1676	Fund. For all policies of eligible risks covered under quota
1677	share primary insurance agreements, the corporation and the
1678	authorized insurer shall maintain complete and accurate records
1679	for the purpose of exposure and loss reimbursement audits as
1680	required by Florida Hurricane Catastrophe Fund rules. The
1681	corporation and the authorized insurer shall each maintain
1682	duplicate copies of policy declaration pages and supporting
1683	claims documents.
1684	g.  The corporation board shall establish in its plan of
1685	operation standards for quota share agreements which ensure that
1686	there is no discriminatory application among insurers as to the
1687	terms of quota share agreements, pricing of quota share
1688	agreements, incentive provisions if any, and consideration paid
1689	for servicing policies or adjusting claims.
1690	h.  The quota share primary insurance agreement between the
1691	corporation and an authorized insurer must set forth the
1692	specific terms under which coverage is provided, including, but
1693	not limited to, the sale and servicing of policies issued under
1694	the agreement by the insurance agent of the authorized insurer
1695	producing the business, the reporting of information concerning
1696	eligible risks, the payment of premium to the corporation, and
1697	arrangements for the adjustment and payment of hurricane claims
1698	incurred on eligible risks by the claims adjuster and personnel
1699	of the authorized insurer. Entering into a quota sharing
1700	insurance agreement between the corporation and an authorized
1701	insurer shall be voluntary and at the discretion of the
1702	authorized insurer.
1703	3.  May provide that the corporation may employ or
1704	otherwise contract with individuals or other entities to provide
1705	administrative or professional services that may be appropriate
1706	to effectuate the plan. The corporation shall have the power to
1707	borrow funds, by issuing bonds or by incurring other
1708	indebtedness, and shall have other powers reasonably necessary
1709	to effectuate the requirements of this subsection, including,
1710	without limitation, the power to issue bonds and incur other
1711	indebtedness in order to refinance outstanding bonds or other
1712	indebtedness. The corporation may, but is not required to, seek
1713	judicial validation of its bonds or other indebtedness under
1714	chapter 75. The corporation may issue bonds or incur other
1715	indebtedness, or have bonds issued on its behalf by a unit of
1716	local government pursuant to subparagraph (p)2., in the absence
1717	of a hurricane or other weather-related event, upon a
1718	determination by the corporation, subject to approval by the
1719	office, that such action would enable it to efficiently meet the
1720	financial obligations of the corporation and that such
1721	financings are reasonably necessary to effectuate the
1722	requirements of this subsection. The corporation is authorized
1723	to take all actions needed to facilitate tax-free status for any
1724	such bonds or indebtedness, including formation of trusts or
1725	other affiliated entities. The corporation shall have the
1726	authority to pledge assessments, projected recoveries from the
1727	Florida Hurricane Catastrophe Fund, other reinsurance
1728	recoverables, market equalization and other surcharges, and
1729	other funds available to the corporation as security for bonds
1730	or other indebtedness. In recognition of s. 10, Art. I of the
1731	State Constitution, prohibiting the impairment of obligations of
1732	contracts, it is the intent of the Legislature that no action be
1733	taken whose purpose is to impair any bond indenture or financing
1734	agreement or any revenue source committed by contract to such
1735	bond or other indebtedness.
1736	4.a.  Must require that the corporation operate subject to
1737	the supervision and approval of a board of governors consisting
1738	of eight individuals who are residents of this state, from
1739	different geographical areas of this state. The Governor, the
1740	Chief Financial Officer, the President of the Senate, and the
1741	Speaker of the House of Representatives shall each appoint two
1742	members of the board. At least one of the two members appointed
1743	by each appointing officer must have demonstrated expertise in
1744	insurance. The Chief Financial Officer shall designate one of
1745	the appointees as chair. All board members serve at the pleasure
1746	of the appointing officer. All members of the board of governors
1747	are subject to removal at will by the officers who appointed
1748	them. Except as otherwise provided, all board members, including
1749	the chair, must be appointed to serve for 3-year terms beginning
1750	annually on a date designated by the plan. However, for the
1751	first term beginning on or after July 1, 2009, each appointing
1752	officer shall appoint one member of the board for a 2-year term
1753	and one member for a 3-year term. Any board vacancy shall be
1754	filled for the unexpired term by the appointing officer. The
1755	Chief Financial Officer shall appoint a technical advisory group
1756	to provide information and advice to the board of governors in
1757	connection with the board's duties under this subsection. The
1758	executive director and senior managers of the corporation shall
1759	be engaged by the board and serve at the pleasure of the board.
1760	Any executive director appointed on or after July 1, 2006, is
1761	subject to confirmation by the Senate. The executive director is
1762	responsible for employing other staff as the corporation may
1763	require, subject to review and concurrence by the board.
1764	b.  The board shall create a Market Accountability Advisory
1765	Committee to assist the corporation in developing awareness of
1766	its rates and its customer and agent service levels in
1767	relationship to the voluntary market insurers writing similar
1768	coverage. The members of the advisory committee shall consist of
1769	the following 11 persons, one of whom must be elected chair by
1770	the members of the committee: four representatives, one
1771	appointed by the Florida Association of Insurance Agents, one by
1772	the Florida Association of Insurance and Financial Advisors, one
1773	by the Professional Insurance Agents of Florida, and one by the
1774	Latin American Association of Insurance Agencies; three
1775	representatives appointed by the insurers with the three highest
1776	voluntary market share of residential property insurance
1777	business in the state; one representative from the Office of
1778	Insurance Regulation; one consumer appointed by the board who is
1779	insured by the corporation at the time of appointment to the
1780	committee; one representative appointed by the Florida
1781	Association of Realtors; and one representative appointed by the
1782	Florida Bankers Association. All members must serve for 3-year
1783	terms and may serve for consecutive terms. The committee shall
1784	report to the corporation at each board meeting on insurance
1785	market issues which may include rates and rate competition with
1786	the voluntary market; service, including policy issuance, claims
1787	processing, and general responsiveness to policyholders,
1788	applicants, and agents; and matters relating to depopulation.
1789	5.  Must provide a procedure for determining the
1790	eligibility of a risk for coverage, as follows:
1791	a.  Subject to the provisions of s. 627.3517, with respect
1792	to personal lines residential risks, if the risk is offered
1793	coverage from an authorized insurer at the insurer's approved
1794	rate under either a standard policy including wind coverage or,
1795	if consistent with the insurer's underwriting rules as filed
1796	with the office, a basic policy including wind coverage, for a
1797	new application to the corporation for coverage, the risk is not
1798	eligible for any policy issued by the corporation unless the
1799	premium for coverage from the authorized insurer is more than 15
1800	percent greater than the premium for comparable coverage from
1801	the corporation. If the risk is not able to obtain any such
1802	offer, the risk is eligible for either a standard policy
1803	including wind coverage or a basic policy including wind
1804	coverage issued by the corporation; however, if the risk could
1805	not be insured under a standard policy including wind coverage
1806	regardless of market conditions, the risk shall be eligible for
1807	a basic policy including wind coverage unless rejected under
1808	subparagraph 8. However, with regard to a policyholder of the
1809	corporation or a policyholder removed from the corporation
1810	through an assumption agreement until the end of the assumption
1811	period, the policyholder remains eligible for coverage from the
1812	corporation regardless of any offer of coverage from an
1813	authorized insurer or surplus lines insurer. The corporation
1814	shall determine the type of policy to be provided on the basis
1815	of objective standards specified in the underwriting manual and
1816	based on generally accepted underwriting practices.
1817	(I)  If the risk accepts an offer of coverage through the
1818	market assistance plan or an offer of coverage through a
1819	mechanism established by the corporation before a policy is
1820	issued to the risk by the corporation or during the first 30
1821	days of coverage by the corporation, and the producing agent who
1822	submitted the application to the plan or to the corporation is
1823	not currently appointed by the insurer, the insurer shall:
1824	(A)  Pay to the producing agent of record of the policy,
1825	for the first year, an amount that is the greater of the
1826	insurer's usual and customary commission for the type of policy
1827	written or a fee equal to the usual and customary commission of
1828	the corporation; or
1829	(B)  Offer to allow the producing agent of record of the
1830	policy to continue servicing the policy for a period of not less
1831	than 1 year and offer to pay the agent the greater of the
1832	insurer's or the corporation's usual and customary commission
1833	for the type of policy written.
1834
1835	If the producing agent is unwilling or unable to accept
1836	appointment, the new insurer shall pay the agent in accordance
1837	with sub-sub-sub-subparagraph (A).
1838	(II)  When the corporation enters into a contractual
1839	agreement for a take-out plan, the producing agent of record of
1840	the corporation policy is entitled to retain any unearned
1841	commission on the policy, and the insurer shall:
1842	(A)  Pay to the producing agent of record of the
1843	corporation policy, for the first year, an amount that is the
1844	greater of the insurer's usual and customary commission for the
1845	type of policy written or a fee equal to the usual and customary
1846	commission of the corporation; or
1847	(B)  Offer to allow the producing agent of record of the
1848	corporation policy to continue servicing the policy for a period
1849	of not less than 1 year and offer to pay the agent the greater
1850	of the insurer's or the corporation's usual and customary
1851	commission for the type of policy written.
1852
1853	If the producing agent is unwilling or unable to accept
1854	appointment, the new insurer shall pay the agent in accordance
1855	with sub-sub-sub-subparagraph (A).
1856	b.  With respect to commercial lines residential risks, for
1857	a new application to the corporation for coverage, if the risk
1858	is offered coverage under a policy including wind coverage from
1859	an authorized insurer at its approved rate, the risk is not
1860	eligible for any policy issued by the corporation unless the
1861	premium for coverage from the authorized insurer is more than 15
1862	percent greater than the premium for comparable coverage from
1863	the corporation. If the risk is not able to obtain any such
1864	offer, the risk is eligible for a policy including wind coverage
1865	issued by the corporation. However, with regard to a
1866	policyholder of the corporation or a policyholder removed from
1867	the corporation through an assumption agreement until the end of
1868	the assumption period, the policyholder remains eligible for
1869	coverage from the corporation regardless of any offer of
1870	coverage from an authorized insurer or surplus lines insurer.
1871	(I)  If the risk accepts an offer of coverage through the
1872	market assistance plan or an offer of coverage through a
1873	mechanism established by the corporation before a policy is
1874	issued to the risk by the corporation or during the first 30
1875	days of coverage by the corporation, and the producing agent who
1876	submitted the application to the plan or the corporation is not
1877	currently appointed by the insurer, the insurer shall:
1878	(A)  Pay to the producing agent of record of the policy,
1879	for the first year, an amount that is the greater of the
1880	insurer's usual and customary commission for the type of policy
1881	written or a fee equal to the usual and customary commission of
1882	the corporation; or
1883	(B)  Offer to allow the producing agent of record of the
1884	policy to continue servicing the policy for a period of not less
1885	than 1 year and offer to pay the agent the greater of the
1886	insurer's or the corporation's usual and customary commission
1887	for the type of policy written.
1888
1889	If the producing agent is unwilling or unable to accept
1890	appointment, the new insurer shall pay the agent in accordance
1891	with sub-sub-sub-subparagraph (A).
1892	(II)  When the corporation enters into a contractual
1893	agreement for a take-out plan, the producing agent of record of
1894	the corporation policy is entitled to retain any unearned
1895	commission on the policy, and the insurer shall:
1896	(A)  Pay to the producing agent of record of the
1897	corporation policy, for the first year, an amount that is the
1898	greater of the insurer's usual and customary commission for the
1899	type of policy written or a fee equal to the usual and customary
1900	commission of the corporation; or
1901	(B)  Offer to allow the producing agent of record of the
1902	corporation policy to continue servicing the policy for a period
1903	of not less than 1 year and offer to pay the agent the greater
1904	of the insurer's or the corporation's usual and customary
1905	commission for the type of policy written.
1906
1907	If the producing agent is unwilling or unable to accept
1908	appointment, the new insurer shall pay the agent in accordance
1909	with sub-sub-sub-subparagraph (A).
1910	c.  For purposes of determining comparable coverage under
1911	sub-subparagraphs a. and b., the comparison shall be based on
1912	those forms and coverages that are reasonably comparable. The
1913	corporation may rely on a determination of comparable coverage
1914	and premium made by the producing agent who submits the
1915	application to the corporation, made in the agent's capacity as
1916	the corporation's agent. A comparison may be made solely of the
1917	premium with respect to the main building or structure only on
1918	the following basis: the same coverage A or other building
1919	limits; the same percentage hurricane deductible that applies on
1920	an annual basis or that applies to each hurricane for commercial
1921	residential property; the same percentage of ordinance and law
1922	coverage, if the same limit is offered by both the corporation
1923	and the authorized insurer; the same mitigation credits, to the
1924	extent the same types of credits are offered both by the
1925	corporation and the authorized insurer; the same method for loss
1926	payment, such as replacement cost or actual cash value, if the
1927	same method is offered both by the corporation and the
1928	authorized insurer in accordance with underwriting rules; and
1929	any other form or coverage that is reasonably comparable as
1930	determined by the board. If an application is submitted to the
1931	corporation for wind-only coverage in the high-risk account, the
1932	premium for the corporation's wind-only policy plus the premium
1933	for the ex-wind policy that is offered by an authorized insurer
1934	to the applicant shall be compared to the premium for multiperil
1935	coverage offered by an authorized insurer, subject to the
1936	standards for comparison specified in this subparagraph. If the
1937	corporation or the applicant requests from the authorized
1938	insurer a breakdown of the premium of the offer by types of
1939	coverage so that a comparison may be made by the corporation or
1940	its agent and the authorized insurer refuses or is unable to
1941	provide such information, the corporation may treat the offer as
1942	not being an offer of coverage from an authorized insurer at the
1943	insurer's approved rate.
1944	6.  Must include rules for classifications of risks and
1945	rates therefor.
1946	7.  Must provide that if premium and investment income for
1947	an account attributable to a particular calendar year are in
1948	excess of projected losses and expenses for the account
1949	attributable to that year, such excess shall be held in surplus
1950	in the account. Such surplus shall be available to defray
1951	deficits in that account as to future years and shall be used
1952	for that purpose prior to assessing assessable insurers and
1953	assessable insureds as to any calendar year.
1954	8.  Must provide objective criteria and procedures to be
1955	uniformly applied for all applicants in determining whether an
1956	individual risk is so hazardous as to be uninsurable. In making
1957	this determination and in establishing the criteria and
1958	procedures, the following shall be considered:
1959	a.  Whether the likelihood of a loss for the individual
1960	risk is substantially higher than for other risks of the same
1961	class; and
1962	b.  Whether the uncertainty associated with the individual
1963	risk is such that an appropriate premium cannot be determined.
1964
1965	The acceptance or rejection of a risk by the corporation shall
1966	be construed as the private placement of insurance, and the
1967	provisions of chapter 120 shall not apply.
1968	9.  Must provide that the corporation shall make its best
1969	efforts to procure catastrophe reinsurance at reasonable rates,
1970	to cover its projected 100-year probable maximum loss as
1971	determined by the board of governors.
1972	10.  The policies issued by the corporation must provide
1973	that, if the corporation or the market assistance plan obtains
1974	an offer from an authorized insurer to cover the risk at its
1975	approved rates, the risk is no longer eligible for renewal
1976	through the corporation, except as otherwise provided in this
1977	subsection.
1978	11.  Corporation policies and applications must include a
1979	notice that the corporation policy could, under this section, be
1980	replaced with a policy issued by an authorized insurer that does
1981	not provide coverage identical to the coverage provided by the
1982	corporation. The notice shall also specify that acceptance of
1983	corporation coverage creates a conclusive presumption that the
1984	applicant or policyholder is aware of this potential.
1985	12.  May establish, subject to approval by the office,
1986	different eligibility requirements and operational procedures
1987	for any line or type of coverage for any specified county or
1988	area if the board determines that such changes to the
1989	eligibility requirements and operational procedures are
1990	justified due to the voluntary market being sufficiently stable
1991	and competitive in such area or for such line or type of
1992	coverage and that consumers who, in good faith, are unable to
1993	obtain insurance through the voluntary market through ordinary
1994	methods would continue to have access to coverage from the
1995	corporation. When coverage is sought in connection with a real
1996	property transfer, such requirements and procedures shall not
1997	provide for an effective date of coverage later than the date of
1998	the closing of the transfer as established by the transferor,
1999	the transferee, and, if applicable, the lender.
2000	13.  Must provide that, with respect to the high-risk
2001	account, any assessable insurer with a surplus as to
2002	policyholders of $25 million or less writing 25 percent or more
2003	of its total countrywide property insurance premiums in this
2004	state may petition the office, within the first 90 days of each
2005	calendar year, to qualify as a limited apportionment company. A
2006	regular assessment levied by the corporation on a limited
2007	apportionment company for a deficit incurred by the corporation
2008	for the high-risk account in 2006 or thereafter may be paid to
2009	the corporation on a monthly basis as the assessments are
2010	collected by the limited apportionment company from its insureds
2011	pursuant to s. 627.3512, but the regular assessment must be paid
2012	in full within 12 months after being levied by the corporation.
2013	A limited apportionment company shall collect from its
2014	policyholders any emergency assessment imposed under sub-
2015	subparagraph (b)3.d. The plan shall provide that, if the office
2016	determines that any regular assessment will result in an
2017	impairment of the surplus of a limited apportionment company,
2018	the office may direct that all or part of such assessment be
2019	deferred as provided in subparagraph (p)4. However, there shall
2020	be no limitation or deferment of an emergency assessment to be
2021	collected from policyholders under sub-subparagraph (b)3.d.
2022	14.  Must provide that the corporation appoint as its
2023	licensed agents only those agents who also hold an appointment
2024	as defined in s. 626.015(3) with an insurer who at the time of
2025	the agent's initial appointment by the corporation is authorized
2026	to write and is actually writing personal lines residential
2027	property coverage, commercial residential property coverage, or
2028	commercial nonresidential property coverage within the state.
2029	15.  Must provide, by July 1, 2007, a premium payment plan
2030	option to its policyholders which allows at a minimum for
2031	quarterly and semiannual payment of premiums. A monthly payment
2032	plan may, but is not required to, be offered.
2033	16.  Must limit coverage on mobile homes or manufactured
2034	homes built prior to 1994 to actual cash value of the dwelling
2035	rather than replacement costs of the dwelling.
2036	17.  May provide such limits of coverage as the board
2037	determines, consistent with the requirements of this subsection.
2038	18.  May require commercial property to meet specified
2039	hurricane mitigation construction features as a condition of
2040	eligibility for coverage.
2041	(m)1.  Rates for coverage provided by the corporation shall
2042	be actuarially sound and subject to the requirements of s.
2043	627.062, except as otherwise provided in this paragraph. The
2044	corporation shall file its recommended rates with the office at
2045	least annually. The corporation shall provide any additional
2046	information regarding the rates which the office requires. The
2047	office shall consider the recommendations of the board and issue
2048	a final order establishing the rates for the corporation within
2049	45 days after the recommended rates are filed. The corporation
2050	may not pursue an administrative challenge or judicial review of
2051	the final order of the office.
2052	2.  In addition to the rates otherwise determined pursuant
2053	to this paragraph, the corporation shall impose and collect an
2054	amount equal to the premium tax provided for in s. 624.509 to
2055	augment the financial resources of the corporation.
2056	3.  After the public hurricane loss-projection model under
2057	s. 627.06281 has been found to be accurate and reliable by the
2058	Florida Commission on Hurricane Loss Projection Methodology,
2059	that model shall serve as the minimum benchmark for determining
2060	the windstorm portion of the corporation's rates. This
2061	subparagraph does not require or allow the corporation to adopt
2062	rates lower than the rates otherwise required or allowed by this
2063	paragraph.
2064	4.  The rate filings for the corporation which were
2065	approved by the office and which took effect January 1, 2007,
2066	are rescinded, except for those rates that were lowered. As soon
2067	as possible, the corporation shall begin using the lower rates
2068	that were in effect on December 31, 2006, and shall provide
2069	refunds to policyholders who have paid higher rates as a result
2070	of that rate filing. The rates in effect on December 31, 2006,
2071	shall remain in effect for the 2007 and 2008 calendar years
2072	except for any rate change that results in a lower rate. The
2073	next rate change that may increase rates shall take effect
2074	pursuant to a new rate filing recommended by the corporation and
2075	established by the office, subject to the requirements of this
2076	paragraph.
2077	5.  Beginning on July 15, 2009, and each year thereafter,
2078	the corporation must make a recommended actuarially sound rate
2079	filing for each personal and commercial line of business it
2080	writes, to be effective no earlier than January 1, 2010.
2081	6.  The Legislature finds that it is in the public interest
2082	to ensure that actuarially sound rates for coverage by the
2083	corporation be implemented incrementally to provide rate
2084	stability and predictability to its policyholders.
2085	7.  Beginning on or after January 1, 2010, the corporation
2086	shall begin to implement actuarially sound rates for each
2087	commercial and personal line of business it writes, which may
2088	not exceed an average statewide increase of 10 percent or exceed
2089	20 percent for any single policy issued by the corporation,
2090	excluding coverage changes and surcharges.
2091	8.  The corporation's incremental implementation of rates
2092	as prescribed in subparagraph 7. shall cease for any line of
2093	business written by the corporation after actuarially sound
2094	rates as prescribed in subparagraph 1. are achieved. Thereafter,
2095	the corporation shall annually make a recommended actuarially
2096	sound rate filing for each commercial and personal line of
2097	business it writes.
2098	9.  In addition to the rate increase required pursuant to
2099	subparagraph 7., the corporation may increase its rates an
2100	amount sufficient to recoup additional reimbursement premium
2101	paid to the Florida Hurricane Catastrophe Fund due to the
2102	application of a cash build-up factor.
2103	10.  Beginning April 1, 2010, and each quarter thereafter,
2104	the corporation shall transfer 10 percent of the funds received
2105	from the rate increase prescribed by subparagraph 7. to the
2106	General Revenue Fund. The corporation's transfer of such funds
2107	shall cease upon the corporation's implementation of actuarially
2108	sound rates as prescribed in subparagraph 1.
2109	(x)  It is the intent of the Legislature that the
2110	amendments to this subsection enacted in 2002 should, over time,
2111	reduce the probable maximum windstorm losses in the residual
2112	markets and should reduce the potential assessments to be levied
2113	on property insurers and policyholders statewide. In furtherance
2114	of this intent:
2115	1.  The board shall, on or before February 1 of each year,
2116	provide a report to the President of the Senate and the Speaker
2117	of the House of Representatives showing the reduction or
2118	increase in the 100-year probable maximum loss attributable to
2119	wind-only coverages and the quota share program under this
2120	subsection combined, as compared to the benchmark 100-year
2121	probable maximum loss of the Florida Windstorm Underwriting
2122	Association. For purposes of this paragraph, the benchmark 100-
2123	year probable maximum loss of the Florida Windstorm Underwriting
2124	Association shall be the calculation dated February 2001 and
2125	based on November 30, 2000, exposures. In order to ensure
2126	comparability of data, the board shall use the same methods for
2127	calculating its probable maximum loss as were used to calculate
2128	the benchmark probable maximum loss.
2129	2.  Beginning February 1, 2010, if the report under
2130	subparagraph 1. for any year indicates that the 100-year
2131	probable maximum loss attributable to wind-only coverages and
2132	the quota share program combined does not reflect a reduction of
2133	at least 25 percent from the benchmark, the board shall reduce
2134	the boundaries of the high-risk area eligible for wind-only
2135	coverages under this subsection in a manner calculated to reduce
2136	such probable maximum loss to an amount at least 25 percent
2137	below the benchmark.
2138	3.  Beginning February 1, 2015, if the report under
2139	subparagraph 1. for any year indicates that the 100-year
2140	probable maximum loss attributable to wind-only coverages and
2141	the quota share program combined does not reflect a reduction of
2142	at least 50 percent from the benchmark, the boundaries of the
2143	high-risk area eligible for wind-only coverages under this
2144	subsection shall be reduced by the elimination of any area that
2145	is not seaward of a line 1,000 feet inland from the Intracoastal
2146	Waterway.
2147	Section 12.  Subsection (2) of section 627.711, Florida
2148	Statutes, is amended, and subsection (3) is added to that
2149	section, to read:
2150	627.711  Notice of premium discounts for hurricane loss
2151	mitigation; uniform mitigation verification inspection form.--
2152	(2)(a)  By July 1, 2007, the Financial Services Commission
2153	shall develop by rule a uniform mitigation verification
2154	inspection form that shall be used by all insurers when
2155	submitted by policyholders for the purpose of factoring
2156	discounts for wind insurance. In developing the form, the
2157	commission shall seek input from insurance, construction, and
2158	building code representatives. Further, the commission shall
2159	provide guidance as to the length of time the inspection results
2160	are valid. An insurer shall accept as valid a uniform mitigation
2161	verification form certified by the Department of Financial
2162	Services or signed by:
2163	(a)  A hurricane mitigation inspector employed by an
2164	approved My Safe Florida Home wind certification entity;
2165	1.(b)  A building code inspector certified under s.
2166	468.607;
2167	2.(c)  A general, building, or residential contractor
2168	licensed under s. 489.111;
2169	3.(d)  A professional engineer licensed under s. 471.015
2170	who has passed the appropriate equivalency test of the Building
2171	Code Training Program as required by s. 553.841; or
2172	4.(e)  A professional architect licensed under s. 481.213.
2173	(b)  An insurer may contract with inspection firms at the
2174	insurer's expense to review mitigation verification forms and to
2175	reinspect properties for which the insurer receives mitigation
2176	verification forms to ensure that the forms are valid.
2177	(3)  An individual or entity who knowingly provides or
2178	utters a false or fraudulent mitigation verification form with
2179	the intent to obtain or receive a discount on an insurance
2180	premium to which the individual or entity is not entitled
2181	commits a misdemeanor of the first degree, punishable as
2182	provided in s. 775.082 or s. 775.083.
2183	Section 13.  Subsection (1) and paragraph (c) of subsection
2184	(2) of section 627.712, Florida Statutes, are amended to read:
2185	627.712  Residential windstorm coverage required;
2186	availability of exclusions for windstorm or contents.--
2187	(1)  An insurer issuing a residential property insurance
2188	policy must provide windstorm coverage. Except as provided in
2189	paragraph (2)(c), this section does not apply with respect to
2190	risks that are eligible for wind-only coverage from Citizens
2191	Property Insurance Corporation under s. 627.351(6) and with
2192	respect to risks that are not eligible for coverage from
2193	Citizens Property Insurance Corporation under s. 627.351(6)(a)3.
2194	or 5. A risk ineligible for Citizens coverage under s.
2195	627.351(6)(a)3. or 5. is exempt from the requirements of this
2196	section only if the risk is located within the boundaries of the
2197	high-risk account of the corporation.
2198	(2)  A property insurer must make available, at the option
2199	of the policyholder, an exclusion of windstorm coverage.
2200	(c)  If the residential structure is eligible for wind-only
2201	coverage from Citizens Property Insurance Corporation, An
2202	insurer nonrenewing a policy and issuing a replacement policy,
2203	or issuing a new policy, that does not provide wind coverage
2204	shall provide a notice to the mortgageholder or lienholder
2205	indicating the policyholder has elected coverage that does not
2206	cover wind.
2207	Section 14.  Section 631.65, Florida Statutes, is amended
2208	to read:
2209	631.65  Prohibited advertisement or solicitation.--No
2210	person shall make, publish, disseminate, circulate, or place
2211	before the public, or cause, directly or indirectly, to be made,
2212	published, disseminated, circulated, or placed before the
2213	public, in a newspaper, magazine, or other publication, or in
2214	the form of a notice, circular, pamphlet, letter, or poster, or
2215	over any radio station or television station, or in any other
2216	way, any advertisement, announcement, or statement which uses
2217	the existence of the insurance guaranty association for the
2218	purpose of sales, solicitation, or inducement to purchase any
2219	form of insurance covered under this part. However, nothing in
2220	this section may be construed to prevent a duly licensed
2221	insurance agent from providing explanations concerning the
2222	existence or application of the insurance guaranty association
2223	to policyholders, prospective policyholders, or applicants for
2224	coverage.
2225	Section 15.  Upon receipt of funds transferred to the
2226	General Revenue Fund pursuant to s. 627.351(6)(m)10., Florida
2227	Statutes, the funds transferred are appropriated on a
2228	nonrecurring basis from the General Revenue Fund to the
2229	Insurance Regulatory Trust Fund in the Department of Financial
2230	Services for purposes of the My Safe Florida Home Program
2231	specified in s. 215.5586, Florida Statutes. The My Safe Florida
2232	Home Program shall use the funds solely for the provision of
2233	mitigation grants in accordance with s. 215.5586(2), Florida
2234	Statutes, to policyholders of Citizens Property Insurance
2235	Corporation who are otherwise eligible for grants from the My
2236	Safe Florida Home Program. The department shall establish a
2237	separate account within the trust fund for accounting purposes.
2238	Section 16.  This act shall take effect upon becoming a
2239	law.

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