CS/CS/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 the
7	dates of an insurer's contract year for purposes of
8	calculating the insurer's retention; revising
9	reimbursement contract coverage payment provisions;
10	extending application of provisions relating to
11	reimbursement contracts; revising the dates on which the
12	State Board of Administration is required to publish a
13	statement of the estimated borrowing capacity of the
14	Florida Hurricane Catastrophe Fund; requiring the board to
15	publish a statement of the estimated claims-paying
16	capacity of the Florida Hurricane Catastrophe Fund;
17	requiring a reimbursement premium formula to provide cash
18	build-up factors for certain contract years; extending
19	provisions relating to temporary increase in coverage
20	limit operations for the fund; providing additional
21	reimbursement requirements for temporary increase in
22	coverage addenda for additional contract years; expanding
23	the powers and duties of the board; specifying required
24	increases in TICL reimbursement premiums for certain
25	contract years; specifying nonapplication of cash build-up
26	factors to TICL reimbursement premiums; deleting authority
27	for the State Board of Administration to increase the
28	claims-paying capacity of the fund; amending s. 215.5586,
29	F.S., relating to the My Safe Florida Home Program;
30	revising legislative intent; revising criteria for
31	hurricane mitigation inspections; revising criteria for
32	eligibility for a mitigation grant; expanding the list of
33	improvements for which grants may be used; deleting
34	provisions relating to no-interest loans; requiring that
35	contracts valued at or greater than a specified amount be
36	subject to review and approval by the Legislative Budget
37	Commission; requiring the Department of Financial Services
38	to implement a condominium weatherization and mitigation
39	loan program for certain purposes; specifying program
40	requirements; specifying an administration requirement for
41	the program; requiring the department to adopt rules;
42	amending s. 624.4622, F.S.; prohibiting withdrawal notice
43	requirements of longer than 30 days for members of a local
44	government self-insurance fund; requiring local government
45	self-insurance funds to submit an affidavit to specified
46	entities; specifying affidavit contents; amending s.
47	624.605, F.S.; revising the definition of the term
48	"casualty insurance" to include certain debt cancellation
49	products sold or leased by certain business entities;
50	amending s.626.753, F.S.; prohibiting certain uses of
51	commissions derived from the sale of crop hail or
52	multiple-peril crop insurance which are shared between
53	certain agents and certain production credit associations
54	or federal land bank associations; providing penalties;
55	providing that patronage dividends and other payments to
56	members of production credit associations or federal land
57	bank associations are unlawful rebates under certain
58	circumstances; providing penalties for an agent who shares
59	commissions with a production credit association or
60	federal land bank association under certain circumstances;
61	amending s. 626.9541, F.S.; specifying that certain
62	patronage dividends and other payments are unfair methods
63	of competition and unfair or deceptive acts; providing
64	penalties; amending s. 627.062, F.S.; extending
65	application of file and use filing requirements for
66	certain property insurance filings; prohibiting the Office
67	of Insurance Regulation from interfering with an insurer's
68	right to solicit, sell, promote, or otherwise acquire
69	policyholders and implement coverage; specifying limited
70	application to certain rates; specifying that certain rate
71	filings are not subject to office determination as
72	excessive or unfairly discriminatory; providing
73	limitations; providing a definition; prohibiting certain
74	rate filings under certain circumstances; preserving the
75	office's authority to disapprove certain rate filings
76	under certain circumstances; providing procedures for
77	insurers submitting certain rate filings; specifying
78	nonapplication to certain types of insurance; amending s.
79	627.0621, F.S.; deleting a limitation on the application
80	of the attorney-client privilege and work product doctrine
81	in challenges to actions by the office relating to rate
82	filings; amending s. 627.0628, F.S.; requiring the Florida
83	Commission on Hurricane Loss Projection Methodology to
84	hold public meetings for purposes of implementing certain
85	windstorm mitigation discounts, credits, other rate
86	differentials, and deductible reductions; requiring a
87	report to the Governor, Cabinet, and Legislature; amending
88	s. 627.0629, F.S.; requiring certain hurricane mitigation
89	measure discounts, credits, and rate differentials to
90	supersede certain other discounts, credits, and rate
91	differentials; authorizing residential property insurers
92	to include reinsurance costs without certain TICL
93	adjustments; amending s. 627.0655, F.S.; discontinuing
94	authorization for a premium discount for a policyholder
95	having multiple policies from Citizens Property Insurance
96	Corporation or a policy that has been removed from the
97	corporation by another insurer; amending s. 627.351, F.S.;
98	deleting application of certain personal lines residential
99	property insurance requirements for wind-borne debris
100	regions insured by the corporation; revising the basis of
101	a surcharge to offset an account deficit; providing for
102	members of the board of governors of the corporation to
103	serve staggered terms; providing exceptions to actuarially
104	sound rate requirements for the corporation; providing
105	legislative findings; requiring the corporation to
106	implement certain actuarially sound rates for certain
107	lines of business; providing limitations; providing for
108	cessation of certain rate increases upon implementation of
109	actuarially sound rates; requiring the corporation to
110	transfer certain funds from the rate increase to the
111	Insurance Regulatory Trust Fund in the Department of
112	Financial Services for a certain time; deleting certain
113	wind-only coverage maximum loss reporting requirements;
114	amending s. 627.711, F.S.; revising eligible entities
115	authorized to certify uniform mitigation inspection forms;
116	authorizing insurers to contract with inspection firms to
117	review certain verification forms and reinspect properties
118	for certain purposes; providing for such contracts to be
119	at the insurer's expense; providing a criminal penalty for
120	knowingly submitting a false or fraudulent mitigation form
121	with the intent to receive an undeserved discount;
122	amending s. 627.712, F.S.; providing an additional
123	exception to residential property insurance windstorm
124	coverage requirements for certain risks; expanding a
125	requirement that insurers notify mortgageholders or
126	lienholders of policyholder elections for coverage not
127	covering wind; amending s. 631.65, F.S.; providing
128	construction relating to certain prohibited advertisements
129	or solicitations; requiring the My Safe Florida Home
130	Program to use certain funds for certain mitigation
131	grants; authorizing the department to establish a separate
132	account in the trust fund for accounting purposes;
133	amending s. 626.854, F.S.; prohibiting public adjusters
134	from compensating, or agreeing to compensate, any person
135	for referrals of business; providing an exception;
136	amending s. 626.865, F.S.; revising qualifications for
137	public adjuster's license; deleting requirement that
138	applicant for public adjuster's license pass a written
139	examination; amending s. 626.8651, F.S.; revising
140	qualifications for public adjuster apprentice license;
141	requiring that applicant for public adjuster apprentice
142	license pass a written examination, complete certain
143	training, and receive a specified designation; limiting
144	the number of public adjuster apprentices that may
145	appointed by a public adjusting firm or supervised by a
146	supervising public adjuster; amending s. 627.7011, F.S.;
147	specifying that provisions regulating homeowners' policies
148	do not prohibit insurers from repairing damaged property;
149	providing an effective date.
150
151	Be It Enacted by the Legislature of the State of Florida:
152
153	Section 1.  Subsection (20) is added to section 215.47,
154	Florida Statutes, to read:
155	215.47  Investments; authorized securities; loan of
156	securities.--Subject to the limitations and conditions of the
157	State Constitution or of the trust agreement relating to a trust
158	fund, moneys available for investments under ss. 215.44-215.53
159	may be invested as follows:
160	(20)  The State Board of Administration may, consistent
161	with sound investment policy, invest in revenue bonds issued
162	pursuant to s. 215.555(6).
163	Section 2.  Paragraph (e) of subsection (2), paragraphs (b)
164	and (c) of subsection (4), paragraph (b) of subsection (5), and
165	subsection (17) of section 215.555, Florida Statutes, are
166	amended, and paragraph (f) is added to subsection (7) of that
167	section, to read:
168	215.555  Florida Hurricane Catastrophe Fund.--
169	(2)  DEFINITIONS.--As used in this section:
170	(e)  "Retention" means the amount of losses below which an
171	insurer is not entitled to reimbursement from the fund. An
172	insurer's retention shall be calculated as follows:
173	1.  The board shall calculate and report to each insurer
174	the retention multiples for that year. For the contract year
175	beginning June 1, 2005, the retention multiple shall be equal to
176	$4.5 billion divided by the total estimated reimbursement
177	premium for the contract year; for subsequent years, the
178	retention multiple shall be equal to $4.5 billion, adjusted
179	based upon the reported exposure from the prior contract year to
180	reflect the percentage growth in exposure to the fund for
181	covered policies since 2004, divided by the total estimated
182	reimbursement premium for the contract year. Total reimbursement
183	premium for purposes of the calculation under this subparagraph
184	shall be estimated using the assumption that all insurers have
185	selected the 90-percent coverage level. In 2010, the contract
186	year begins June 1 and ends December 31. In 2011 and thereafter,
187	the contract year begins January 1 and ends December 31.
188	2.  The retention multiple as determined under subparagraph
189	1. shall be adjusted to reflect the coverage level elected by
190	the insurer. For insurers electing the 90-percent coverage
191	level, the adjusted retention multiple is 100 percent of the
192	amount determined under subparagraph 1. For insurers electing
193	the 75-percent coverage level, the retention multiple is 120
194	percent of the amount determined under subparagraph 1. For
195	insurers electing the 45-percent coverage level, the adjusted
196	retention multiple is 200 percent of the amount determined under
197	subparagraph 1.
198	3.  An insurer shall determine its provisional retention by
199	multiplying its provisional reimbursement premium by the
200	applicable adjusted retention multiple and shall determine its
201	actual retention by multiplying its actual reimbursement premium
202	by the applicable adjusted retention multiple.
203	4.  For insurers who experience multiple covered events
204	causing loss during the contract year, beginning June 1, 2005,
205	each insurer's full retention shall be applied to each of the
206	covered events causing the two largest losses for that insurer.
207	For each other covered event resulting in losses, the insurer's
208	retention shall be reduced to one-third of the full retention.
209	The reimbursement contract shall provide for the reimbursement
210	of losses for each covered event based on the full retention
211	with adjustments made to reflect the reduced retentions after
212	January 1 of the contract year provided the insurer reports its
213	losses as specified in the reimbursement contract.
214	(4)  REIMBURSEMENT CONTRACTS.--
215	(b)1.  The contract shall contain a promise by the board to
216	reimburse the insurer for 45 percent, 75 percent, or 90 percent
217	of its losses from each covered event in excess of the insurer's
218	retention, plus 5 percent of the reimbursed losses to cover loss
219	adjustment expenses.
220	2.  The insurer must elect one of the percentage coverage
221	levels specified in this paragraph and may, upon renewal of a
222	reimbursement contract, elect a lower percentage coverage level
223	if no revenue bonds issued under subsection (6) after a covered
224	event are outstanding, or elect a higher percentage coverage
225	level, regardless of whether or not revenue bonds are
226	outstanding. All members of an insurer group must elect the same
227	percentage coverage level. Any joint underwriting association,
228	risk apportionment plan, or other entity created under s.
229	627.351 must elect the 90-percent coverage level.
230	3.  The contract shall provide that reimbursement amounts
231	shall not be reduced by reinsurance paid or payable to the
232	insurer from other sources.
233	4.  Notwithstanding any other provision contained in this
234	section, the board shall make available to insurers that
235	purchased coverage provided by this subparagraph in 2008 2007,
236	insurers qualifying as limited apportionment companies under s.
237	627.351(6)(c), and insurers that have been approved to
238	participate in the Insurance Capital Build-Up Incentive Program
239	pursuant to s. 215.5595 a contract or contract addendum that
240	provides an additional amount of reimbursement coverage of up to
241	$10 million. The premium to be charged for this additional
242	reimbursement coverage shall be 50 percent of the additional
243	reimbursement coverage provided, which shall include one prepaid
244	reinstatement. The minimum retention level that an eligible
245	participating insurer must retain associated with this
246	additional coverage layer is 30 percent of the insurer's surplus
247	as of December 31, 2008, for the 2009-2010 contract year; as of
248	December 31, 2009, for the contract year beginning June 1, 2010,
249	and ending December 31, 2010; and as of December 31, 2010, for
250	the 2011 contract year 2007. This coverage shall be in addition
251	to all other coverage that may be provided under this section.
252	The coverage provided by the fund under this subparagraph shall
253	be in addition to the claims-paying capacity as defined in
254	subparagraph (c)1., but only with respect to those insurers that
255	select the additional coverage option and meet the requirements
256	of this subparagraph. The claims-paying capacity with respect to
257	all other participating insurers and limited apportionment
258	companies that do not select the additional coverage option
259	shall be limited to their reimbursement premium's proportionate
260	share of the actual claims-paying capacity otherwise defined in
261	subparagraph (c)1. and as provided for under the terms of the
262	reimbursement contract. The optional coverage retention as
263	specified shall be accessed before the mandatory coverage under
264	the reimbursement contract, but once the limit of coverage
265	selected under this option is exhausted, the insurer's retention
266	under the mandatory coverage shall apply. This coverage shall
267	apply and be paid concurrently with the mandatory coverage.
268	Coverage provided in the reimbursement contract shall not be
269	affected by the additional premiums paid by participating
270	insurers exercising the additional coverage option allowed in
271	this subparagraph. This subparagraph expires on December May 31,
272	2011 2009.
273	(c)1.  The contract shall also provide that the obligation
274	of the board with respect to all contracts covering a particular
275	contract year shall not exceed the actual claims-paying capacity
276	of the fund up to a limit of $15 billion for that contract year
277	adjusted based upon the reported exposure from the prior
278	contract year to reflect the percentage growth in exposure to
279	the fund for covered policies since 2003, provided the dollar
280	growth in the limit may not increase in any year by an amount
281	greater than the dollar growth of the balance of the fund as of
282	December 31, less any premiums or interest attributable to
283	optional coverage, as defined by rule which occurred over the
284	prior calendar year.
285	2.  In May before the start of the upcoming contract year
286	and in October of during the contract year, the board shall
287	publish in the Florida Administrative Weekly a statement of the
288	fund's estimated borrowing capacity, the fund's estimated
289	claims-paying capacity, and the projected balance of the fund as
290	of December 31. After the end of each calendar year, the board
291	shall notify insurers of the estimated borrowing capacity, the
292	estimated claims-paying capacity, and the balance of the fund as
293	of December 31 to provide insurers with data necessary to assist
294	them in determining their retention and projected payout from
295	the fund for loss reimbursement purposes. In conjunction with
296	the development of the premium formula, as provided for in
297	subsection (5), the board shall publish factors or multiples
298	that assist insurers in determining their retention and
299	projected payout for the next contract year. For all regulatory
300	and reinsurance purposes, an insurer may calculate its projected
301	payout from the fund as its share of the total fund premium for
302	the current contract year multiplied by the sum of the projected
303	balance of the fund as of December 31 and the estimated
304	borrowing capacity for that contract year as reported under this
305	subparagraph.
306	(5)  REIMBURSEMENT PREMIUMS.--
307	(b)  The State Board of Administration shall select an
308	independent consultant to develop a formula for determining the
309	actuarially indicated premium to be paid to the fund. The
310	formula shall specify, for each zip code or other limited
311	geographical area, the amount of premium to be paid by an
312	insurer for each $1,000 of insured value under covered policies
313	in that zip code or other area. In establishing premiums, the
314	board shall consider the coverage elected under paragraph (4)(b)
315	and any factors that tend to enhance the actuarial
316	sophistication of ratemaking for the fund, including
317	deductibles, type of construction, type of coverage provided,
318	relative concentration of risks, and other such factors deemed
319	by the board to be appropriate. The formula must provide for a
320	cash build-up factor. For the contract year 2009-2010, the
321	factor is 5 percent; for the contract year beginning June 1,
322	2010, and ending December 31, 2010, the factor is 10 percent;
323	for the 2011 contract year, the factor is 15 percent; for the
324	2012 contract year, the factor is 20 percent; and for the 2013
325	contract year and thereafter, the factor is 25 percent. The
326	formula may provide for a procedure to determine the premiums to
327	be paid by new insurers that begin writing covered policies
328	after the beginning of a contract year, taking into
329	consideration when the insurer starts writing covered policies,
330	the potential exposure of the insurer, the potential exposure of
331	the fund, the administrative costs to the insurer and to the
332	fund, and any other factors deemed appropriate by the board. The
333	formula must be approved by unanimous vote of the board. The
334	board may, at any time, revise the formula pursuant to the
335	procedure provided in this paragraph.
336	(7)  ADDITIONAL POWERS AND DUTIES.--
337	(f)  The board may require insurers to notarize documents
338	submitted to the board.
339	(17)  TEMPORARY INCREASE IN COVERAGE LIMIT OPTIONS.--
340	(a)  Findings and intent.--
341	1.  The Legislature finds that:
342	a.  Because of temporary disruptions in the market for
343	catastrophic reinsurance, many property insurers were unable to
344	procure sufficient amounts of reinsurance for the 2006 hurricane
345	season or were able to procure such reinsurance only by
346	incurring substantially higher costs than in prior years.
347	b.  The reinsurance market problems were responsible, at
348	least in part, for substantial premium increases to many
349	consumers and increases in the number of policies issued by
350	Citizens Property Insurance Corporation.
351	c.  It is likely that the reinsurance market disruptions
352	will not significantly abate prior to the 2007 hurricane season.
353	2.  It is the intent of the Legislature to create options
354	for insurers to purchase a temporary increased coverage limit
355	above the statutorily determined limit in subparagraph (4)(c)1.,
356	applicable for the 2007, 2008, and 2009, 2010, 2011, 2012, and
357	2013 hurricane seasons, to address market disruptions and enable
358	insurers, at their option, to procure additional coverage from
359	the Florida Hurricane Catastrophe Fund.
360	(b)  Applicability of other provisions of this
361	section.--All provisions of this section and the rules adopted
362	under this section apply to the coverage created by this
363	subsection unless specifically superseded by provisions in this
364	subsection.
365	(c)  Optional coverage.--For the contract year commencing
366	June 1, 2007, and ending May 31, 2008, the contract year
367	commencing June 1, 2008, and ending May 31, 2009, and the
368	contract year commencing June 1, 2009, and ending May 31, 2010,
369	the contract year commencing June 1, 2010, and ending December
370	31, 2010, the contract year commencing January 1, 2011, and
371	ending December 31, 2011, the contract year commencing January
372	1, 2012, and ending December 31, 2012, and the contract year
373	commencing January 1, 2013, and ending December 31, 2013, the
374	board shall offer, for each of such years, the optional coverage
375	as provided in this subsection.
376	(d)  Additional definitions.--As used in this subsection,
377	the term:
378	1.  "FHCF" means Florida Hurricane Catastrophe Fund.
379	2.  "FHCF reimbursement premium" means the premium paid by
380	an insurer for its coverage as a mandatory participant in the
381	FHCF, but does not include additional premiums for optional
382	coverages.
383	3.  "Payout multiple" means the number or multiple created
384	by dividing the statutorily defined claims-paying capacity as
385	determined in subparagraph (4)(c)1. by the aggregate
386	reimbursement premiums paid by all insurers estimated or
387	projected as of calendar year-end.
388	4.  "TICL" means the temporary increase in coverage limit.
389	5.  "TICL options" means the temporary increase in coverage
390	options created under this subsection.
391	6.  "TICL insurer" means an insurer that has opted to
392	obtain coverage under the TICL options addendum in addition to
393	the coverage provided to the insurer under its FHCF
394	reimbursement contract, but does not include Citizens Property
395	Insurance Corporation.
396	7.  "TICL reimbursement premium" means the premium charged
397	by the fund for coverage provided under the TICL option.
398	8.  "TICL coverage multiple" means the coverage multiple
399	when multiplied by an insurer's reimbursement premium that
400	defines the temporary increase in coverage limit.
401	9.  "TICL coverage" means the coverage for an insurer's
402	losses above the insurer's statutorily determined claims-paying
403	capacity based on the claims-paying limit in subparagraph
404	(4)(c)1., which an insurer selects as its temporary increase in
405	coverage from the fund under the TICL options selected. A TICL
406	insurer's increased coverage limit options shall be calculated
407	as follows:
408	a.  The board shall calculate and report to each TICL
409	insurer the TICL coverage multiples based on 12 options for
410	increasing the insurer's FHCF coverage limit. Each TICL coverage
411	multiple shall be calculated by dividing $1 billion, $2 billion,
412	$3 billion, $4 billion, $5 billion, $6 billion, $7 billion, $8
413	billion, $9 billion, $10 billion, $11 billion, or $12 billion by
414	the total estimated aggregate FHCF reimbursement premiums for
415	the 2007-2008 contract year and, the 2008-2009 contract year,
416	and the 2009-2010 contract year.
417	b.  For the 2009-2010 contract year, the board shall
418	calculate and report to each TICL insurer the TICL coverage
419	multiples based on 10 options for increasing the insurer's FHCF
420	coverage limit. Each TICL coverage multiple shall be calculated
421	by dividing $1 billion, $2 billion, $3 billion, $4 billion, $5
422	billion, $6 billion, $7 billion, $8 billion, $9 billion, and $10
423	billion by the total estimated aggregate FHCF reimbursement
424	premiums for the 2009-2010 contract year.
425	c.  For the contract year beginning June 1, 2010, and
426	ending December 31, 2010, the board shall calculate and report
427	to each TICL insurer the TICL coverage multiples based on eight
428	options for increasing the insurer's FHCF coverage limit. Each
429	TICL coverage multiple shall be calculated by dividing $1
430	billion, $2 billion, $3 billion, $4 billion, $5 billion, $6
431	billion, $7 billion, and $8 billion by the total estimated
432	aggregate FHCF reimbursement premiums for the contract year.
433	d.  For the 2011 contract year, the board shall calculate
434	and report to each TICL insurer the TICL coverage multiples
435	based on six options for increasing the insurer's FHCF coverage
436	limit. Each TICL coverage multiple shall be calculated by
437	dividing $1 billion, $2 billion, $3 billion, $4 billion, $5
438	billion, and $6 billion by the total estimated aggregate FHCF
439	reimbursement premiums for the 2011 contract year.
440	e.  For the 2012 contract year, the board shall calculate
441	and report to each TICL insurer the TICL coverage multiples
442	based on four options for increasing the insurer's FHCF coverage
443	limit. Each TICL coverage multiple shall be calculated by
444	dividing $1 billion, $2 billion, $3 billion, and $4 billion by
445	the total estimated aggregate FHCF reimbursement premiums for
446	the 2012 contract year.
447	f.  For the 2013 contract year, the board shall calculate
448	and report to each TICL insurer the TICL coverage multiples
449	based on two options for increasing the insurer's FHCF coverage
450	limit. Each TICL coverage multiple shall be calculated by
451	dividing $1 billion and $2 billion by the total estimated
452	aggregate FHCF reimbursement premiums for the 2013 contract
453	year.
454	g.b.  The TICL insurer's increased coverage shall be the
455	FHCF reimbursement premium multiplied by the TICL coverage
456	multiple. In order to determine an insurer's total limit of
457	coverage, an insurer shall add its TICL coverage multiple to its
458	payout multiple. The total shall represent a number that, when
459	multiplied by an insurer's FHCF reimbursement premium for a
460	given reimbursement contract year, defines an insurer's total
461	limit of FHCF reimbursement coverage for that reimbursement
462	contract year.
463	10.  "TICL options addendum" means an addendum to the
464	reimbursement contract reflecting the obligations of the fund
465	and insurers selecting an option to increase an insurer's FHCF
466	coverage limit.
467	(e)  TICL options addendum.--
468	1.  The TICL options addendum shall provide for
469	reimbursement of TICL insurers for covered events occurring
470	between June 1, 2007, and May 31, 2008, and between June 1,
471	2008, and May 31, 2009, or between June 1, 2009, and May 31,
472	2010, between June 1, 2010, and December 31, 2010, between
473	January 1, 2011, and December 31, 2011, between January 1, 2012,
474	and December 31, 2012, or between January 1, 2013, and December
475	31, 2013, in exchange for the TICL reimbursement premium paid
476	into the fund under paragraph (f). Any insurer writing covered
477	policies has the option of selecting an increased limit of
478	coverage under the TICL options addendum and shall select such
479	coverage at the time that it executes the FHCF reimbursement
480	contract.
481	2.a.  The TICL addendum for the contract year commencing
482	June 1, 2007, and ending May 31, 2008, or the contract year
483	commencing June 1, 2008, and ending May 31, 2009, shall contain
484	a promise by the board to reimburse the TICL insurer for 45
485	percent, 75 percent, or 90 percent of its losses from each
486	covered event in excess of the insurer's retention, plus 5
487	percent of the reimbursed losses to cover loss adjustment
488	expenses. The percentage shall be the same as the coverage level
489	selected by the insurer under paragraph (4)(b).
490	b.  The TICL addendum for the contract year commencing June
491	1, 2009, and ending May 31, 2010, shall contain a promise by the
492	board to reimburse the TICL insurer for 45 percent or 75 percent
493	of its losses from each covered event in excess of the insurer's
494	retention, plus 5 percent of the reimbursed losses to cover loss
495	adjustment expenses.
496	c.  The TICL addendum for the contract year commencing June
497	1, 2010, and ending December 31, 2010, shall contain a promise
498	by the board to reimburse the TICL insurer for 45 percent or 65
499	percent of its losses from each covered event in excess of the
500	insurer's retention, plus 5 percent of the reimbursed losses to
501	cover loss adjustment expenses.
502	d.  The TICL addendum for the contract year commencing
503	January 1, 2011, and ending December 31, 2011, shall contain a
504	promise by the board to reimburse the TICL insurer for 45
505	percent or 55 percent of its losses from each covered event in
506	excess of the insurer's retention, plus 5 percent of the
507	reimbursed losses to cover loss adjustment expenses.
508	e.  The TICL addendum for the contract year commencing
509	January 1, 2012, and ending December 31, 2012, shall contain a
510	promise by the board to reimburse the TICL insurer for 45
511	percent of its losses from each covered event in excess of the
512	insurer's retention, plus 5 percent of the reimbursed losses to
513	cover loss adjustment expenses.
514	f.  The TICL addendum for the contract year commencing
515	January 1, 2013, and ending December 31, 2013, shall contain a
516	promise by the board to reimburse the TICL insurer for 30
517	percent of its losses from each covered event in excess of the
518	insurer's retention, plus 5 percent of the reimbursed losses to
519	cover loss adjustment expenses.
520	3.  The TICL addendum shall provide that reimbursement
521	amounts shall not be reduced by reinsurance paid or payable to
522	the insurer from other sources.
523	4.  The priorities, schedule, and method of reimbursements
524	under the TICL addendum shall be the same as provided under
525	subsection (4).
526	(f)  TICL reimbursement premiums.--Each TICL insurer shall
527	pay to the fund, in the manner and at the time provided in the
528	reimbursement contract for payment of reimbursement premiums, a
529	TICL reimbursement premium determined as specified in subsection
530	(5), except that a cash build-up factor does not apply to the
531	TICL reimbursement premiums. However, the TICL reimbursement
532	premium shall be increased in contract year 2009-2010 by a
533	factor of two, in the contract year beginning June 1, 2010, and
534	ending December 31, 2010, by a factor of three, in the 2011
535	contract year by a factor of four, in the 2012 contract year by
536	a factor of five, and in the 2013 contract year by a factor of
537	six.
538	(g)  Effect on claims-paying capacity of the fund.--For the
539	contract terms commencing June 1, 2007, June 1, 2008, and June
540	1, 2009, June 1, 2010, January 1, 2011, January 1, 2012, and
541	January 1, 2013, the program created by this subsection shall
542	increase the claims-paying capacity of the fund as provided in
543	subparagraph (4)(c)1. by an amount not to exceed $12 billion and
544	shall depend on the TICL coverage options selected and the
545	number of insurers that select the TICL optional coverage. The
546	additional capacity shall apply only to the additional coverage
547	provided under the TICL options and shall not otherwise affect
548	any insurer's reimbursement from the fund if the insurer chooses
549	not to select the temporary option to increase its limit of
550	coverage under the FHCF.
551	(h)  Increasing the claims-paying capacity of the
552	fund.--For the contract years commencing June 1, 2007, June 1,
553	2008, and June 1, 2009, the board may increase the claims-paying
554	capacity of the fund as provided in paragraph (g) by an amount
555	not to exceed $4 billion in four $1 billion options and shall
556	depend on the TICL coverage options selected and the number of
557	insurers that select the TICL optional coverage. Each insurer's
558	TICL premium shall be calculated based upon the additional limit
559	of increased coverage that the insurer selects. Such limit is
560	determined by multiplying the TICL multiple associated with one
561	of the four options times the insurer's FHCF reimbursement
562	premium. The reimbursement premium associated with the
563	additional coverage provided in this paragraph shall be
564	determined as specified in subsection (5).
565	Section 3.  Section 215.5586, Florida Statutes, as amended
566	by section 1 of chapter 2009-10, Laws of Florida, is amended to
567	read:
568	215.5586  My Safe Florida Home Program.--There is
569	established within the Department of Financial Services the My
570	Safe Florida Home Program. The department shall provide fiscal
571	accountability, contract management, and strategic leadership
572	for the program, consistent with this section. This section does
573	not create an entitlement for property owners or obligate the
574	state in any way to fund the inspection or retrofitting of
575	residential property in this state. Implementation of this
576	program is subject to annual legislative appropriations. It is
577	the intent of the Legislature that the My Safe Florida Home
578	Program provide trained and certified inspectors to perform
579	inspections for owners of for at least 400,000 site-built,
580	single-family, residential properties and provide grants to
581	eligible at least 35,000 applicants as funding allows before
582	June 30, 2009. The program shall develop and implement a
583	comprehensive and coordinated approach for hurricane damage
584	mitigation that may shall include the following:
585	(1)  HURRICANE MITIGATION INSPECTIONS.--
586	(a)  Certified inspectors to provide free home-retrofit
587	inspections of site-built, single-family, residential property
588	may shall be offered throughout the state to determine what
589	mitigation measures are needed, what insurance premium discounts
590	may be available, and what improvements to existing residential
591	properties are needed to reduce the property's vulnerability to
592	hurricane damage. The Department of Financial Services shall
593	contract with wind certification entities to provide free
594	hurricane mitigation inspections. The inspections provided to
595	homeowners, at a minimum, must include:
596	1.  A home inspection and report that summarizes the
597	results and identifies recommended improvements a homeowner may
598	take to mitigate hurricane damage.
599	2.  A range of cost estimates regarding the recommended
600	mitigation improvements.
601	3.  Insurer-specific information regarding premium
602	discounts correlated to the current mitigation features and the
603	recommended mitigation improvements identified by the
604	inspection.
605	4.  A hurricane resistance rating scale specifying the
606	home's current as well as projected wind resistance
607	capabilities. As soon as practical, the rating scale must be the
608	uniform home grading scale adopted by the Financial Services
609	Commission pursuant to s. 215.55865.
610	(b)  To qualify for selection by the department as a wind
611	certification entity to provide hurricane mitigation
612	inspections, the entity shall, at a minimum, meet the following
613	requirements:
614	1.  Use hurricane mitigation inspectors who:
615	a.  Are certified as a building inspector under s. 468.607;
616	b.  Are licensed as a general or residential contractor
617	under s. 489.111;
618	c.  Are licensed as a professional engineer under s.
619	471.015 and who have passed the appropriate equivalency test of
620	the Building Code Training Program as required by s. 553.841;
621	d.  Are licensed as a professional architect under s.
622	481.213; or
623	e.  Have at least 2 years of experience in residential
624	construction or residential building inspection and have
625	received specialized training in hurricane mitigation
626	procedures. Such training may be provided by a class offered
627	online or in person.
628	2.  Use hurricane mitigation inspectors who also:
629	a.  Have undergone drug testing and level 2 background
630	checks pursuant to s. 435.04. The department may conduct
631	criminal record checks of inspectors used by wind certification
632	entities. Inspectors must submit a set of the fingerprints to
633	the department for state and national criminal history checks
634	and must pay the fingerprint processing fee set forth in s.
635	624.501. The fingerprints shall be sent by the department to the
636	Department of Law Enforcement and forwarded to the Federal
637	Bureau of Investigation for processing. The results shall be
638	returned to the department for screening. The fingerprints shall
639	be taken by a law enforcement agency, designated examination
640	center, or other department-approved entity; and
641	b.  Have been certified, in a manner satisfactory to the
642	department, to conduct the inspections.
643	3.  Provide a quality assurance program including a
644	reinspection component.
645	(c)  The department shall implement a quality assurance
646	program that includes a statistically valid number of
647	reinspections.
648	(d)  An application for an inspection must contain a signed
649	or electronically verified statement made under penalty of
650	perjury that the applicant has submitted only a single
651	application for that home.
652	(e)  The owner of a site-built, single-family, residential
653	property may apply for and receive an inspection without also
654	applying for a grant pursuant to subsection (2) and without
655	meeting the requirements of paragraph (2)(a).
656	(2)  MITIGATION GRANTS.--Financial grants shall be used to
657	encourage single-family, site-built, owner-occupied, residential
658	property owners to retrofit their properties to make them less
659	vulnerable to hurricane damage.
660	(a)  For a homeowner to be eligible for a grant, the
661	following criteria for persons who have obtained a completed
662	inspection after May 1, 2007, a residential property must be
663	met:
664	1.  The homeowner must have been granted a homestead
665	exemption on the home under chapter 196.
666	2.  The home must be a dwelling with an insured value of
667	$300,000 or less. Homeowners who are low-income persons, as
668	defined in s. 420.0004(10), are exempt from this requirement.
669	3.  The home must have undergone an acceptable hurricane
670	mitigation inspection after May 1, 2007.
671	4.  The home must be located in the "wind-borne debris
672	region" as that term is defined in s. 1609.2, International
673	Building Code (2006), or as subsequently amended.
674	5.  Be a home for which The building permit application for
675	initial construction of the home must have been was made before
676	March 1, 2002.
677
678	An application for a grant must contain a signed or
679	electronically verified statement made under penalty of perjury
680	that the applicant has submitted only a single application and
681	must have attached documents demonstrating the applicant meets
682	the requirements of this paragraph.
683	(b)  All grants must be matched on a dollar-for-dollar
684	basis up to for a total of $10,000 for the actual cost of the
685	mitigation project with the state's contribution not to exceed
686	$5,000.
687	(c)  The program shall create a process in which
688	contractors agree to participate and homeowners select from a
689	list of participating contractors. All mitigation must be based
690	upon the securing of all required local permits and inspections
691	and must be performed by properly licensed contractors.
692	Mitigation projects are subject to random reinspection of up to
693	at least 5 percent of all projects. Hurricane mitigation
694	inspectors qualifying for the program may also participate as
695	mitigation contractors as long as the inspectors meet the
696	department's qualifications and certification requirements for
697	mitigation contractors.
698	(d)  Matching fund grants shall also be made available to
699	local governments and nonprofit entities for projects that will
700	reduce hurricane damage to single-family, site-built, owner-
701	occupied, residential property. The department shall liberally
702	construe those requirements in favor of availing the state of
703	the opportunity to leverage funding for the My Safe Florida Home
704	Program with other sources of funding.
705	(e)  When recommended by a hurricane mitigation inspection,
706	grants may be used for the following improvements only:
707	1.  Opening protection.
708	2.  Exterior doors, including garage doors.
709	3.  Brace gable ends.
710	4.  Reinforcing roof-to-wall connections.
711	5.  Improving the strength of roof-deck attachments.
712	6.  Upgrading roof covering from code to code plus.
713	7.  Secondary water barrier for roof.
714
715	The department may require that improvements be made to all
716	openings, including exterior doors and garage doors, as a
717	condition of reimbursing a homeowner approved for a grant.
718	(f)  Grants may be used on a previously inspected existing
719	structure or on a rebuild. A rebuild is defined as a site-built,
720	single-family dwelling under construction to replace a home that
721	was destroyed or significantly damaged by a hurricane and deemed
722	unlivable by a regulatory authority. The homeowner must be a
723	low-income homeowner as defined in paragraph (g), must have had
724	a homestead exemption for that home prior to the hurricane, and
725	must be intending to rebuild the home as that homeowner's
726	homestead.
727	(g)  Low-income homeowners, as defined in s. 420.0004(10),
728	who otherwise meet the requirements of paragraphs (a), (c), (e),
729	and (f) are eligible for a grant of up to $5,000 and are not
730	required to provide a matching amount to receive the grant.
731	Additionally, for low-income homeowners, grant funding may be
732	used for repair to existing structures leading to any of the
733	mitigation improvements provided in paragraph (e), limited to 20
734	percent of the grant value. The program may accept a
735	certification directly from a low-income homeowner that the
736	homeowner meets the requirements of s. 420.0004(10) if the
737	homeowner provides such certification in a signed or
738	electronically verified statement made under penalty of perjury.
739	(h)  The department shall establish objective, reasonable
740	criteria for prioritizing grant applications, consistent with
741	the requirements of this section.
742	(i)  The department shall develop a process that ensures
743	the most efficient means to collect and verify grant
744	applications to determine eligibility and may direct hurricane
745	mitigation inspectors to collect and verify grant application
746	information or use the Internet or other electronic means to
747	collect information and determine eligibility.
748	(3)  EDUCATION AND CONSUMER AWARENESS.--The department may
749	undertake a statewide multimedia public outreach and advertising
750	campaign to inform consumers of the availability and benefits of
751	hurricane inspections and of the safety and financial benefits
752	of residential hurricane damage mitigation. The department may
753	seek out and use local, state, federal, and private funds to
754	support the campaign.
755	(4)  ADVISORY COUNCIL.--There is created an advisory
756	council to provide advice and assistance to the department
757	regarding administration of the program. The advisory council
758	shall consist of:
759	(a)  A representative of lending institutions, selected by
760	the Financial Services Commission from a list of at least three
761	persons recommended by the Florida Bankers Association.
762	(b)  A representative of residential property insurers,
763	selected by the Financial Services Commission from a list of at
764	least three persons recommended by the Florida Insurance
765	Council.
766	(c)  A representative of home builders, selected by the
767	Financial Services Commission from a list of at least three
768	persons recommended by the Florida Home Builders Association.
769	(d)  A faculty member of a state university, selected by
770	the Financial Services Commission, who is an expert in
771	hurricane-resistant construction methodologies and materials.
772	(e)  Two members of the House of Representatives, selected
773	by the Speaker of the House of Representatives.
774	(f)  Two members of the Senate, selected by the President
775	of the Senate.
776	(g)  The Chief Executive Officer of the Federal Alliance
777	for Safe Homes, Inc., or his or her designee.
778	(h)  The senior officer of the Florida Hurricane
779	Catastrophe Fund.
780	(i)  The executive director of Citizens Property Insurance
781	Corporation.
782	(j)  The director of the Division of Emergency Management
783	of the Department of Community Affairs.
784
785	Members appointed under paragraphs (a)-(d) shall serve at the
786	pleasure of the Financial Services Commission. Members appointed
787	under paragraphs (e) and (f) shall serve at the pleasure of the
788	appointing officer. All other members shall serve as voting ex
789	officio members. Members of the advisory council shall serve
790	without compensation but may receive reimbursement as provided
791	in s. 112.061 for per diem and travel expenses incurred in the
792	performance of their official duties.
793	(5)  FUNDING.--The department may seek out and leverage
794	local, state, federal, or private funds to enhance the financial
795	resources of the program.
796	(6)  RULES.--The Department of Financial Services shall
797	adopt rules pursuant to ss. 120.536(1) and 120.54 to govern the
798	program; implement the provisions of this section; including
799	rules governing hurricane mitigation inspections and grants,
800	mitigation contractors, and training of inspectors and
801	contractors; and carry out the duties of the department under
802	this section.
803	(7)  HURRICANE MITIGATION INSPECTOR LIST.--The department
804	shall develop and maintain as a public record a current list of
805	hurricane mitigation inspectors authorized to conduct hurricane
806	mitigation inspections pursuant to this section.
807	(8)  NO-INTEREST LOANS.--The department shall implement a
808	no-interest loan program by October 1, 2008, contingent upon the
809	selection of a qualified vendor and execution of a contract
810	acceptable to the department and the vendor. The department
811	shall enter into partnerships with the private sector to provide
812	loans to owners of site-built, single-family, residential
813	property to pay for mitigation measures listed in subsection
814	(2). A loan eligible for interest payments pursuant to this
815	subsection may be for a term of up to 3 years and cover up to
816	$5,000 in mitigation measures. The department shall pay the
817	creditor the market rate of interest using funds appropriated
818	for the My Safe Florida Home Program. In no case shall the
819	department pay more than the interest rate set by s. 687.03. To
820	be eligible for a loan, a loan applicant must first obtain a
821	home inspection and report that specifies what improvements are
822	needed to reduce the property's vulnerability to windstorm
823	damage pursuant to this section and meet loan underwriting
824	requirements set by the lender. The department may adopt rules
825	pursuant to ss. 120.536(1) and 120.54 to implement this
826	subsection which may include eligibility criteria.
827	(8)(9)  PUBLIC OUTREACH FOR CONTRACTORS AND REAL ESTATE
828	BROKERS AND SALES ASSOCIATES.--The program shall develop
829	brochures for distribution to general contractors, roofing
830	contractors, and real estate brokers and sales associates
831	licensed under part I of chapter 475 explaining the benefits to
832	homeowners of residential hurricane damage mitigation. The
833	program shall encourage contractors to distribute the brochures
834	to homeowners at the first meeting with a homeowner who is
835	considering contracting for home or roof repairs or contracting
836	for the construction of a new home. The program shall encourage
837	real estate brokers and sales associates licensed under part I
838	of chapter 475 to distribute the brochures to clients prior to
839	the purchase of a home. The brochures may be made available
840	electronically.
841	(9)(10)  CONTRACT MANAGEMENT.--The department may contract
842	with third parties for grants management, inspection services,
843	contractor services for low-income homeowners, information
844	technology, educational outreach, and auditing services. Such
845	contracts shall be considered direct costs of the program and
846	shall not be subject to administrative cost limits, but
847	contracts valued at $1 million $500,000 or more shall be subject
848	to review and approval by the Legislative Budget Commission. The
849	department shall contract with providers that have a
850	demonstrated record of successful business operations in areas
851	directly related to the services to be provided and shall ensure
852	the highest accountability for use of state funds, consistent
853	with this section.
854	(10)(11)  INTENT.--It is the intent of the Legislature that
855	grants made to residential property owners under this section
856	shall be considered disaster-relief assistance within the
857	meaning of s. 139 of the Internal Revenue Code of 1986, as
858	amended.
859	(11)(12)  REPORTS.--The department shall make an annual
860	report on the activities of the program that shall account for
861	the use of state funds and indicate the number of inspections
862	requested, the number of inspections performed, the number of
863	grant applications received, and the number and value of grants
864	approved. The report shall be delivered to the President of the
865	Senate and the Speaker of the House of Representatives by
866	February 1 of each year.
867	(12)  CONDOMINIUM WEATHERIZATION AND MITIGATION LOAN
868	PROGRAM.--
869	(a)  Subject to a specific appropriation by the Legislature
870	from funds received pursuant to the American Recovery and
871	Reinvestment Act of 2009, Pub. L. No. 111-5, specifically for
872	the purpose of condominium weatherization, the department shall
873	implement a condominium weatherization and mitigation loan
874	program to assist condominium unit owners in weatherizing their
875	condominium units and mitigating all such units against wind
876	damage. The program shall have the following minimum
877	requirements:
878	1.  The department shall contract with lenders to offer
879	weatherization and hurricane mitigation loan subsidies equal to
880	a competitive rate of interest on a loan balance of up to $5,000
881	per condominium unit for 3 years. The interest subsidy may be
882	paid in advance by the department to a lender participating in
883	the program.
884	2.  The loans must be used to purchase or install
885	weatherization measures and hurricane mitigation measures
886	identified in paragraph (2)(e) that comply with the requirements
887	of part A, Title IV of the Energy Conservation and Production
888	Act, 42 U.S.C. ss. 6861 et seq., as amended by the American
889	Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5, as
890	determined by the department.
891	3.  A participating condominium association must agree to
892	purchase and install weatherization and mitigation measures for
893	each unit in the condominium that lacks the weatherization and
894	mitigation measures.
895	4.  To be eligible, a condominium must have been permitted
896	for construction on or before March 1, 2002, be located in the
897	wind-borne debris region.
898	5.  Condominiums of more than 200 units are not eligible
899	for the loan program.
900	6.  The department may contract with third parties for
901	auditing and related services to ensure accountability and
902	program quality.
903	(b)  The loan program shall be administered on a first-
904	come, first-served basis.
905	(c)  The department shall adopt rules pursuant to ss.
906	120.536(1) and 120.54 to implement the loan program.
907	Section 4.  Subsections (5) and (6) are added to section
908	624.4622, Florida Statutes, to read:
909	624.4622  Local government self-insurance funds.--
910	(5)  A local government self-insurance fund may not require
911	its members to provide more than 30 days' notice of the member's
912	intention to withdraw from the self-insurance fund as a
913	prerequisite for withdrawing from the self-insurance fund.
914	(6)(a)  Each local government self-insurance fund shall
915	submit annually to the office, to the governing body of each
916	member participant, and to the governing board of each new
917	member before the inception of the policy an affidavit stating
918	whether an officer or owner of or the manager or administrator
919	of a local government self-insurance fund has ever:
920	1.  Been charged with, or indicted for, any criminal
921	offense other than a motor vehicle offense;
922	2.  Pled guilty or nolo contendere to, or been convicted
923	of, any criminal offense other than a motor vehicle offense;
924	3.  Had adjudication of guilt withheld, had a sentence
925	imposed or suspended, had a pronouncement of a sentence
926	suspended, or been pardoned, fined, or placed on probation for
927	any criminal offense other than a motor vehicle offense; or
928	4  Been, within the last 10 years, found liable in any
929	civil action involving dishonesty or a breach of trust.
930	(b)  If the record has been sealed or expunged and the
931	respondent has personally verified that the record was sealed or
932	expunged, a respondent may respond "no" to the question.
933	Section 5.  Paragraph (r) of subsection (1) of section
934	624.605, Florida Statutes, is amended to read:
935	624.605  "Casualty insurance" defined.--
936	(1)  "Casualty insurance" includes:
937	(r)  Insurance for debt cancellation products.--Insurance
938	that a creditor may purchase against the risk of financial loss
939	from the use of debt cancellation products with consumer loans
940	or leases or retail installment contracts. Insurance for debt
941	cancellation products is not liability insurance but shall be
942	considered credit insurance only for the purposes of s.
943	631.52(4).
944	1.  For purposes of this paragraph, the term "debt
945	cancellation products" means loan, lease, or retail installment
946	contract terms, or modifications to loan, lease, or retail
947	installment contracts, under which a creditor agrees to cancel
948	or suspend all or part of a customer's obligation to make
949	payments upon the occurrence of specified events and includes,
950	but is not limited to, debt cancellation contracts, debt
951	suspension agreements, and guaranteed asset protection
952	contracts. However, the term "debt cancellation products" does
953	not include title insurance as defined in s. 624.608.
954	2.  Debt cancellation products may be offered by financial
955	institutions, as defined in s. 655.005(1)(h), insured depository
956	institutions, as defined in 12 U.S.C. s. 1813(c), and
957	subsidiaries of such institutions, as provided in the financial
958	institutions codes, or by other business entities selling or
959	leasing a product that may be goods, services, or real property
960	and interests in real property, the sale or lease of which
961	product is regulated by an agency of the state and when the
962	extension of credit is offered in connection with the purchase
963	or lease of such product. as may be specifically authorized by
964	law, and Such debt cancellation products shall not constitute
965	insurance for purposes of the Florida Insurance Code.
966	Section 6.  Subsection (3) of section 626.753, Florida
967	Statutes, is amended to read:
968	626.753  Sharing commissions; penalty.--
969	(3)(a)  A general lines agent may share commissions derived
970	from the sale of crop hail or multiple-peril crop insurance with
971	a production credit association organized under 12 U.S.C. ss.
972	2071-2077 12 U.S.C.A. ss. 2071-2077 or a federal land bank
973	association organized under 12 U.S.C. ss. 2091-2098 U.S.C.A. ss.
974	2091-2098 if the association has specifically approved the
975	insurance activity by its employees. The amount of commission to
976	be shared shall be determined by the general lines agent and the
977	company paying the commission.
978	(b)  This subsection does not allow such shared commissions
979	to be used, directly or indirectly, for the purpose of providing
980	any patronage dividend or other payment, discount, or credit to
981	a member of a production credit association or federal land bank
982	association if the dividend, payment, discount, or credit is
983	directly or indirectly calculated on the basis of the premium
984	charged to that member for crop hail or multiple-peril crop
985	insurance.
986	(c)  Any patronage dividend or other payment, discount, or
987	credit provided to a member of a production credit association
988	or federal land bank association, which dividend, payment,
989	discount, or credit is directly or indirectly calculated on the
990	basis of the premium charged to that member for crop hail or
991	multiple-peril crop insurance, is an unlawful rebate that
992	violates ss. 626.572 and 626.9541(1)(h).
993	(d)  An agent violates this section if he or she knowingly
994	engages in commission sharing with a production credit
995	association or federal land bank association that provides
996	patronage dividends or other payments, discounts, or credits
997	which are unlawful rebates under paragraph (c).
998	Section 7.  Paragraph (h) of subsection (1) of section
999	626.9541, Florida Statutes, is amended to read:
1000	626.9541  Unfair methods of competition and unfair or
1001	deceptive acts or practices defined.--
1002	(1)  UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
1003	ACTS.--The following are defined as unfair methods of
1004	competition and unfair or deceptive acts or practices:
1005	(h)  Unlawful rebates.--
1006	1.  Except as otherwise expressly provided by law, or in an
1007	applicable filing with the office, knowingly:
1008	a.  Permitting, or offering to make, or making, any
1009	contract or agreement as to such contract other than as plainly
1010	expressed in the insurance contract issued thereon;
1011	b.  Paying, allowing, or giving, or offering to pay, allow,
1012	or give, directly or indirectly, as inducement to such insurance
1013	contract, any unlawful rebate of premiums payable on the
1014	contract, any special favor or advantage in the dividends or
1015	other benefits thereon, or any valuable consideration or
1016	inducement whatever not specified in the contract;
1017	c.  Giving, selling, or purchasing, or offering to give,
1018	sell, or purchase, as inducement to such insurance contract or
1019	in connection therewith, any stocks, bonds, or other securities
1020	of any insurance company or other corporation, association, or
1021	partnership, or any dividends or profits accrued thereon, or
1022	anything of value whatsoever not specified in the insurance
1023	contract.
1024	2.  Nothing in paragraph (g) or subparagraph 1. of this
1025	paragraph shall be construed as including within the definition
1026	of discrimination or unlawful rebates:
1027	a.  In the case of any contract of life insurance or life
1028	annuity, paying bonuses to all policyholders or otherwise
1029	abating their premiums in whole or in part out of surplus
1030	accumulated from nonparticipating insurance; provided that any
1031	such bonuses or abatement of premiums is fair and equitable to
1032	all policyholders and for the best interests of the company and
1033	its policyholders.
1034	b.  In the case of life insurance policies issued on the
1035	industrial debit plan, making allowance to policyholders who
1036	have continuously for a specified period made premium payments
1037	directly to an office of the insurer in an amount which fairly
1038	represents the saving in collection expenses.
1039	c.  Readjustment of the rate of premium for a group
1040	insurance policy based on the loss or expense thereunder, at the
1041	end of the first or any subsequent policy year of insurance
1042	thereunder, which may be made retroactive only for such policy
1043	year.
1044	d.  Issuance of life insurance policies or annuity
1045	contracts at rates less than the usual rates of premiums for
1046	such policies or contracts, as group insurance or employee
1047	insurance as defined in this code.
1048	e.  Issuing life or disability insurance policies on a
1049	salary savings, bank draft, preauthorized check, payroll
1050	deduction, or other similar plan at a reduced rate reasonably
1051	related to the savings made by the use of such plan.
1052	3.a.  No title insurer, or any member, employee, attorney,
1053	agent, or agency thereof, shall pay, allow, or give, or offer to
1054	pay, allow, or give, directly or indirectly, as inducement to
1055	title insurance, or after such insurance has been effected, any
1056	rebate or abatement of the premium or any other charge or fee,
1057	or provide any special favor or advantage, or any monetary
1058	consideration or inducement whatever.
1059	b.  Nothing in this subparagraph shall be construed as
1060	prohibiting the payment of fees to attorneys at law duly
1061	licensed to practice law in the courts of this state, for
1062	professional services, or as prohibiting the payment of earned
1063	portions of the premium to duly appointed agents or agencies who
1064	actually perform services for the title insurer. Nothing in this
1065	subparagraph shall be construed as prohibiting a rebate or
1066	abatement of an attorney's fee charged for professional
1067	services, or that portion of the premium that is not required to
1068	be retained by the insurer pursuant to s. 627.782(1), or any
1069	other agent charge or fee to the person responsible for paying
1070	the premium, charge, or fee.
1071	c.  No insured named in a policy, or any other person
1072	directly or indirectly connected with the transaction involving
1073	the issuance of such policy, including, but not limited to, any
1074	mortgage broker, real estate broker, builder, or attorney, any
1075	employee, agent, agency, or representative thereof, or any other
1076	person whatsoever, shall knowingly receive or accept, directly
1077	or indirectly, any rebate or abatement of any portion of the
1078	title insurance premium or of any other charge or fee or any
1079	monetary consideration or inducement whatsoever, except as set
1080	forth in sub-subparagraph b.; provided, in no event shall any
1081	portion of the attorney's fee, any portion of the premium that
1082	is not required to be retained by the insurer pursuant to s.
1083	627.782(1), any agent charge or fee, or any other monetary
1084	consideration or inducement be paid directly or indirectly for
1085	the referral of title insurance business.
1086	4.  Providing a patronage dividend or other payment,
1087	discount, or credit to a member of a production credit
1088	association organized under 12 U.S.C. ss. 2071-2077 or a federal
1089	land bank association organized under 12 U.S.C. ss. 2091-2098 is
1090	an unlawful rebate if the dividend or other payment, discount,
1091	or credit is directly or indirectly calculated on the basis of
1092	the premium charged to that member for crop hail or multiple-
1093	peril crop insurance.
1094	Section 8.  Paragraphs (a) and (i) of subsection (2) of
1095	section 627.062, Florida Statutes, are amended, and paragraph
1096	(k) is added to that subsection, to read:
1097	627.062  Rate standards.--
1098	(2)  As to all such classes of insurance:
1099	(a)  Insurers or rating organizations shall establish and
1100	use rates, rating schedules, or rating manuals to allow the
1101	insurer a reasonable rate of return on such classes of insurance
1102	written in this state. A copy of rates, rating schedules, rating
1103	manuals, premium credits or discount schedules, and surcharge
1104	schedules, and changes thereto, shall be filed with the office
1105	under one of the following procedures except as provided in
1106	subparagraph 3.:
1107	1.  If the filing is made at least 90 days before the
1108	proposed effective date and the filing is not implemented during
1109	the office's review of the filing and any proceeding and
1110	judicial review, then such filing shall be considered a "file
1111	and use" filing. In such case, the office shall finalize its
1112	review by issuance of a notice of intent to approve or a notice
1113	of intent to disapprove within 90 days after receipt of the
1114	filing. The notice of intent to approve and the notice of intent
1115	to disapprove constitute agency action for purposes of the
1116	Administrative Procedure Act. Requests for supporting
1117	information, requests for mathematical or mechanical
1118	corrections, or notification to the insurer by the office of its
1119	preliminary findings shall not toll the 90-day period during any
1120	such proceedings and subsequent judicial review. The rate shall
1121	be deemed approved if the office does not issue a notice of
1122	intent to approve or a notice of intent to disapprove within 90
1123	days after receipt of the filing.
1124	2.  If the filing is not made in accordance with the
1125	provisions of subparagraph 1., such filing shall be made as soon
1126	as practicable, but no later than 30 days after the effective
1127	date, and shall be considered a "use and file" filing. An
1128	insurer making a "use and file" filing is potentially subject to
1129	an order by the office to return to policyholders portions of
1130	rates found to be excessive, as provided in paragraph (h).
1131	3.  For all property insurance filings made or submitted
1132	after January 25, 2007, but before December 31, 2010 2009, an
1133	insurer seeking a rate that is greater than the rate most
1134	recently approved by the office shall make a "file and use"
1135	filing. For purposes of this subparagraph, motor vehicle
1136	collision and comprehensive coverages are not considered to be
1137	property coverages.
1138	(i)1.  Except as otherwise specifically provided in this
1139	chapter, the office shall not prohibit any insurer, including
1140	any residual market plan or joint underwriting association, from
1141	paying acquisition costs based on the full amount of premium, as
1142	defined in s. 627.403, applicable to any policy, or prohibit any
1143	such insurer from including the full amount of acquisition costs
1144	in a rate filing.
1145	2.  Unless specifically authorized by law, the office shall
1146	not interfere, directly or indirectly, with an insurer's right
1147	to solicit, sell, promote, or otherwise acquire policyholders
1148	and implement coverage using its own lawful methodologies,
1149	systems, agents, and approaches, including the calculation,
1150	manner, or amount of agent commissions, if any. This
1151	subparagraph applies only to rate filings made pursuant to this
1152	section.
1153	(k)  Effective January 1, 2010, notwithstanding any other
1154	provision of this section:
1155	1.  With respect to any residential property insurance
1156	subject to regulation under this section, a rate filing,
1157	including, but not limited to, any rate changes, rating factors,
1158	territories, classifications, discounts, and credits, with
1159	respect to any policy form, including endorsements issued with
1160	the form, that results in an overall average statewide premium
1161	increase or decrease of no more than 10 percent above or below
1162	the premium that would result from the insurer's rates then in
1163	effect shall not be subject to a determination by the office
1164	that the rate is excessive or unfairly discriminatory, except as
1165	provided in subparagraph 3. or any other provision of law,
1166	provided all changes specified in the filing do not result in an
1167	overall premium increase of more than 15 percent for any one
1168	territory for reasons related solely to the rate change. As used
1169	in this subparagraph, the term "insurer's rates then in effect"
1170	includes only rates that have been lawfully in effect under this
1171	section or rates that have been determined to be lawful through
1172	administrative proceedings or judicial proceedings.
1173	2.  An insurer may not make filings under this paragraph
1174	with respect to any policy form, including endorsements issued
1175	with the form, if the overall premium changes resulting from
1176	such filings exceed the amounts specified in this paragraph in
1177	any 12-month period. An insurer may proceed under other
1178	provisions of this section or other provisions of the laws of
1179	this state if the insurer seeks to exceed the premium or rate
1180	limitations of this paragraph.
1181	3.  This paragraph does not affect the authority of the
1182	office to disapprove a rate as inadequate or to disapprove a
1183	filing for the unlawful use of unfairly discriminatory rating
1184	factors that are prohibited by the laws of this state. An
1185	insurer electing to implement a rate change under this paragraph
1186	shall submit a filing to the office at least 30 days prior to
1187	the effective date of the rate change. The office shall have 30
1188	days after the filing's submission to review the filing and
1189	determine if the rate is inadequate or uses unfairly
1190	discriminatory rating factors. Absent a finding by the office
1191	within such 30-day period that the rate is inadequate or that
1192	the insurer has used unfairly discriminatory rating factors, the
1193	filing is deemed approved. If the insurer is implementing an
1194	overall rate decrease and the office finds during the 30-day
1195	period that the filing will result in inadequate premiums or
1196	otherwise endanger the insurer's solvency, the office shall
1197	suspend the rate decrease. If the insurer is implementing an
1198	overall rate increase the results of which continue to produce
1199	an inadequate rate, such increase shall proceed pending
1200	additional action by the office to ensure the adequacy of the
1201	rate.
1202	4.  This paragraph does not apply to rate filings for any
1203	insurance other than residential property insurance.
1204
1205	The provisions of this subsection shall not apply to workers'
1206	compensation and employer's liability insurance and to motor
1207	vehicle insurance.
1208	Section 9.  Section 627.0621, Florida Statutes, as amended
1209	by section 82 of chapter 2009-21, Laws of Florida, is amended to
1210	read:
1211	627.0621  Transparency in rate regulation.--
1212	(1)  DEFINITIONS.--As used in this section, the term:
1213	(a)  "Rate filing" means any original or amended rate
1214	residential property insurance filing.
1215	(b)  "Recommendation" means any proposed, preliminary, or
1216	final recommendation from an office actuary reviewing a rate
1217	filing with respect to the issue of approval or disapproval of
1218	the rate filing or with respect to rate indications that the
1219	office would consider acceptable.
1220	(2)  WEBSITE FOR PUBLIC ACCESS TO RATE FILING
1221	INFORMATION.--With respect to any rate filing made on or after
1222	July 1, 2008, the office shall provide the following information
1223	on a publicly accessible Internet website:
1224	(a)  The overall rate change requested by the insurer.
1225	(b)  All assumptions made by the office's actuaries.
1226	(c)  A statement describing any assumptions or methods that
1227	deviate from the actuarial standards of practice of the Casualty
1228	Actuarial Society or the American Academy of Actuaries,
1229	including an explanation of the nature, rationale, and effect of
1230	the deviation.
1231	(d)  All recommendations made by any office actuary who
1232	reviewed the rate filing.
1233	(e)  Certification by the office's actuary that, based on
1234	the actuary's knowledge, his or her recommendations are
1235	consistent with accepted actuarial principles.
1236	(f)  The overall rate change approved by the office.
1237	(3)  ATTORNEY-CLIENT PRIVILEGE; WORK PRODUCT.--It is the
1238	intent of the Legislature that the principles of the public
1239	records and open meetings laws apply to the assertion of
1240	attorney-client privilege and work product confidentiality by
1241	the office in connection with a challenge to its actions on a
1242	rate filing. Therefore, in any administrative or judicial
1243	proceeding relating to a rate filing, attorney-client privilege
1244	and work product exemptions from disclosure do not apply to
1245	communications with office attorneys or records prepared by or
1246	at the direction of an office attorney, except when the
1247	conditions of paragraphs (a) and (b) have been met:
1248	(a)  The communication or record reflects a mental
1249	impression, conclusion, litigation strategy, or legal theory of
1250	the attorney or office that was prepared exclusively for civil
1251	or criminal litigation or adversarial administrative
1252	proceedings.
1253	(b)  The communication occurred or the record was prepared
1254	after the initiation of an action in a court of competent
1255	jurisdiction, after the issuance of a notice of intent to deny a
1256	rate filing, or after the filing of a request for a proceeding
1257	under ss. 120.569 and 120.57.
1258	Section 10.  Subsection (4) is added to section 627.0628,
1259	Florida Statutes, to read:
1260	627.0628  Florida Commission on Hurricane Loss Projection
1261	Methodology; public records exemption; public meetings
1262	exemption.--
1263	(4)  REVIEW OF DISCOUNTS, CREDITS, OTHER RATE
1264	DIFFERENTIALS, AND REDUCTIONS IN DEDUCTIBLES RELATING TO
1265	WINDSTORM MITIGATION.--The commission shall hold public meetings
1266	for the purpose of receiving testimony and data regarding the
1267	implementation of windstorm mitigation discounts, credits, other
1268	rate differentials, and appropriate reductions in deductibles
1269	pursuant to s. 627.0629. After reviewing the testimony and data
1270	as well as any other information the commission deems
1271	appropriate, the commission shall present a report by October 1,
1272	2009, to the Governor, the Cabinet, the President of the Senate,
1273	and the Speaker of the House of Representatives, including
1274	recommendations on improving the process of assessing,
1275	determining, and applying windstorm mitigation discounts,
1276	credits, other rate differentials, and appropriate reductions in
1277	deductibles pursuant to s. 627.0629.
1278	Section 11.  Paragraph (b) of subsection (1) and subsection
1279	(5) of section 627.0629, Florida Statutes, are amended to read:
1280	627.0629  Residential property insurance; rate filings.--
1281	(1)
1282	(b)  By February 1, 2011, the Office of Insurance
1283	Regulation, in consultation with the Department of Financial
1284	Services and the Department of Community Affairs, shall develop
1285	and make publicly available a proposed method for insurers to
1286	establish discounts, credits, or other rate differentials for
1287	hurricane mitigation measures which directly correlate to the
1288	numerical rating assigned to a structure pursuant to the uniform
1289	home grading scale adopted by the Financial Services Commission
1290	pursuant to s. 215.55865, including any proposed changes to the
1291	uniform home grading scale. By October 1, 2011, the commission
1292	shall adopt rules requiring insurers to make rate filings for
1293	residential property insurance which revise insurers' discounts,
1294	credits, or other rate differentials for hurricane mitigation
1295	measures so that such rate differentials correlate directly to
1296	the uniform home grading scale. The rules may include such
1297	changes to the uniform home grading scale as the commission
1298	determines are necessary, and may specify the minimum required
1299	discounts, credits, or other rate differentials. Such rate
1300	differentials must be consistent with generally accepted
1301	actuarial principles and wind-loss mitigation studies. The rules
1302	shall allow a period of at least 2 years after the effective
1303	date of the revised mitigation discounts, credits, or other rate
1304	differentials for a property owner to obtain an inspection or
1305	otherwise qualify for the revised credit, during which time the
1306	insurer shall continue to apply the mitigation credit that was
1307	applied immediately prior to the effective date of the revised
1308	credit. Discounts, credits, and other rate differentials
1309	established for rate filings under this paragraph shall
1310	supersede, after adoption, the discounts, credits, and other
1311	rate differentials included in rate filings under paragraph (a).
1312	(5)  In order to provide an appropriate transition period,
1313	an insurer may, in its sole discretion, implement an approved
1314	rate filing for residential property insurance over a period of
1315	years. An insurer electing to phase in its rate filing must
1316	provide an informational notice to the office setting out its
1317	schedule for implementation of the phased-in rate filing. An
1318	insurer may include in its rate the actual cost of reinsurance
1319	without the addition of an expense or profit load for the
1320	insurer that duplicates coverage of the temporary increase in
1321	coverage limit (TICL) available from the Florida Hurricane
1322	Catastrophe Fund, even if the insurer does not purchase the TICL
1323	coverage, to the extent the total annual base rate increase does
1324	not exceed 10 percent as a result of such inclusion.
1325	Section 12.  Section 627.0655, Florida Statutes, is amended
1326	to read:
1327	627.0655  Policyholder loss or expense-related premium
1328	discounts.--An insurer or person authorized to engage in the
1329	business of insurance in this state may include, in the premium
1330	charged an insured for any policy, contract, or certificate of
1331	insurance, a discount based on the fact that another policy,
1332	contract, or certificate of any type has been purchased by the
1333	insured from the same insurer or insurer group, or, for policies
1334	issued or renewed before January 1, 2010, from the Citizens
1335	Property Insurance Corporation created under s. 627.351(6) if
1336	the same insurance agent is servicing both policies, or for
1337	policies issued or renewed before January 1, 2010, from an
1338	insurer that has removed the policy from the Citizens Property
1339	Insurance Corporation if the same insurance agent is servicing
1340	both policies.
1341	Section 13.  Paragraphs (y) through (ee) of subsection (6)
1342	of section 627.351, Florida Statutes, are redesignated as
1343	paragraphs (x) through (dd), respectively, and paragraphs (a),
1344	(b), (c), and (m) and present paragraph (x) of that subsection
1345	are amended to read:
1346	627.351  Insurance risk apportionment plans.--
1347	(6)  CITIZENS PROPERTY INSURANCE CORPORATION.--
1348	(a)1.  It is the public purpose of this subsection to
1349	ensure the existence of an orderly market for property insurance
1350	for Floridians and Florida businesses. The Legislature finds
1351	that private insurers are unwilling or unable to provide
1352	affordable property insurance coverage in this state to the
1353	extent sought and needed. The absence of affordable property
1354	insurance threatens the public health, safety, and welfare and
1355	likewise threatens the economic health of the state. The state
1356	therefore has a compelling public interest and a public purpose
1357	to assist in assuring that property in the state is insured and
1358	that it is insured at affordable rates so as to facilitate the
1359	remediation, reconstruction, and replacement of damaged or
1360	destroyed property in order to reduce or avoid the negative
1361	effects otherwise resulting to the public health, safety, and
1362	welfare, to the economy of the state, and to the revenues of the
1363	state and local governments which are needed to provide for the
1364	public welfare. It is necessary, therefore, to provide
1365	affordable property insurance to applicants who are in good
1366	faith entitled to procure insurance through the voluntary market
1367	but are unable to do so. The Legislature intends by this
1368	subsection that affordable property insurance be provided and
1369	that it continue to be provided, as long as necessary, through
1370	Citizens Property Insurance Corporation, a government entity
1371	that is an integral part of the state, and that is not a private
1372	insurance company. To that end, Citizens Property Insurance
1373	Corporation shall strive to increase the availability of
1374	affordable property insurance in this state, while achieving
1375	efficiencies and economies, and while providing service to
1376	policyholders, applicants, and agents which is no less than the
1377	quality generally provided in the voluntary market, for the
1378	achievement of the foregoing public purposes. Because it is
1379	essential for this government entity to have the maximum
1380	financial resources to pay claims following a catastrophic
1381	hurricane, it is the intent of the Legislature that Citizens
1382	Property Insurance Corporation continue to be an integral part
1383	of the state and that the income of the corporation be exempt
1384	from federal income taxation and that interest on the debt
1385	obligations issued by the corporation be exempt from federal
1386	income taxation.
1387	2.  The Residential Property and Casualty Joint
1388	Underwriting Association originally created by this statute
1389	shall be known, as of July 1, 2002, as the Citizens Property
1390	Insurance Corporation. The corporation shall provide insurance
1391	for residential and commercial property, for applicants who are
1392	in good faith entitled, but are unable, to procure insurance
1393	through the voluntary market. The corporation shall operate
1394	pursuant to a plan of operation approved by order of the
1395	Financial Services Commission. The plan is subject to continuous
1396	review by the commission. The commission may, by order, withdraw
1397	approval of all or part of a plan if the commission determines
1398	that conditions have changed since approval was granted and that
1399	the purposes of the plan require changes in the plan. The
1400	corporation shall continue to operate pursuant to the plan of
1401	operation approved by the Office of Insurance Regulation until
1402	October 1, 2006. For the purposes of this subsection,
1403	residential coverage includes both personal lines residential
1404	coverage, which consists of the type of coverage provided by
1405	homeowner's, mobile home owner's, dwelling, tenant's,
1406	condominium unit owner's, and similar policies, and commercial
1407	lines residential coverage, which consists of the type of
1408	coverage provided by condominium association, apartment
1409	building, and similar policies.
1410	3.  Effective January 1, 2009, a personal lines residential
1411	structure that has a dwelling replacement cost of $2 million or
1412	more, or a single condominium unit that has a combined dwelling
1413	and content replacement cost of $2 million or more is not
1414	eligible for coverage by the corporation. Such dwellings insured
1415	by the corporation on December 31, 2008, may continue to be
1416	covered by the corporation until the end of the policy term.
1417	However, such dwellings that are insured by the corporation and
1418	become ineligible for coverage due to the provisions of this
1419	subparagraph may reapply and obtain coverage if the property
1420	owner provides the corporation with a sworn affidavit from one
1421	or more insurance agents, on a form provided by the corporation,
1422	stating that the agents have made their best efforts to obtain
1423	coverage and that the property has been rejected for coverage by
1424	at least one authorized insurer and at least three surplus lines
1425	insurers. If such conditions are met, the dwelling may be
1426	insured by the corporation for up to 3 years, after which time
1427	the dwelling is ineligible for coverage. The office shall
1428	approve the method used by the corporation for valuing the
1429	dwelling replacement cost for the purposes of this subparagraph.
1430	If a policyholder is insured by the corporation prior to being
1431	determined to be ineligible pursuant to this subparagraph and
1432	such policyholder files a lawsuit challenging the determination,
1433	the policyholder may remain insured by the corporation until the
1434	conclusion of the litigation.
1435	4.  It is the intent of the Legislature that policyholders,
1436	applicants, and agents of the corporation receive service and
1437	treatment of the highest possible level but never less than that
1438	generally provided in the voluntary market. It also is intended
1439	that the corporation be held to service standards no less than
1440	those applied to insurers in the voluntary market by the office
1441	with respect to responsiveness, timeliness, customer courtesy,
1442	and overall dealings with policyholders, applicants, or agents
1443	of the corporation.
1444	5.  Effective January 1, 2009, a personal lines residential
1445	structure that is located in the "wind-borne debris region," as
1446	defined in s. 1609.2, International Building Code (2006), and
1447	that has an insured value on the structure of $750,000 or more
1448	is not eligible for coverage by the corporation unless the
1449	structure has opening protections as required under the Florida
1450	Building Code for a newly constructed residential structure in
1451	that area. A residential structure shall be deemed to comply
1452	with the requirements of this subparagraph if it has shutters or
1453	opening protections on all openings and if such opening
1454	protections complied with the Florida Building Code at the time
1455	they were installed. Effective January 1, 2010, for personal
1456	lines residential property insured by the corporation that is
1457	located in the wind-borne debris region and has an insured value
1458	on the structure of $500,000 or more, a prospective purchaser of
1459	any such residential property must be provided by the seller a
1460	written disclosure that contains the structure's windstorm
1461	mitigation rating based on the uniform home grading scale
1462	adopted under s. 215.55865. Such rating shall be provided to the
1463	purchaser at or before the time the purchaser executes a
1464	contract for sale and purchase.
1465	(b)1.  All insurers authorized to write one or more subject
1466	lines of business in this state are subject to assessment by the
1467	corporation and, for the purposes of this subsection, are
1468	referred to collectively as "assessable insurers." Insurers
1469	writing one or more subject lines of business in this state
1470	pursuant to part VIII of chapter 626 are not assessable
1471	insurers, but insureds who procure one or more subject lines of
1472	business in this state pursuant to part VIII of chapter 626 are
1473	subject to assessment by the corporation and are referred to
1474	collectively as "assessable insureds." An authorized insurer's
1475	assessment liability shall begin on the first day of the
1476	calendar year following the year in which the insurer was issued
1477	a certificate of authority to transact insurance for subject
1478	lines of business in this state and shall terminate 1 year after
1479	the end of the first calendar year during which the insurer no
1480	longer holds a certificate of authority to transact insurance
1481	for subject lines of business in this state.
1482	2.a.  All revenues, assets, liabilities, losses, and
1483	expenses of the corporation shall be divided into three separate
1484	accounts as follows:
1485	(I)  A personal lines account for personal residential
1486	policies issued by the corporation or issued by the Residential
1487	Property and Casualty Joint Underwriting Association and renewed
1488	by the corporation that provide comprehensive, multiperil
1489	coverage on risks that are not located in areas eligible for
1490	coverage in the Florida Windstorm Underwriting Association as
1491	those areas were defined on January 1, 2002, and for such
1492	policies that do not provide coverage for the peril of wind on
1493	risks that are located in such areas;
1494	(II)  A commercial lines account for commercial residential
1495	and commercial nonresidential policies issued by the corporation
1496	or issued by the Residential Property and Casualty Joint
1497	Underwriting Association and renewed by the corporation that
1498	provide coverage for basic property perils on risks that are not
1499	located in areas eligible for coverage in the Florida Windstorm
1500	Underwriting Association as those areas were defined on January
1501	1, 2002, and for such policies that do not provide coverage for
1502	the peril of wind on risks that are located in such areas; and
1503	(III)  A high-risk account for personal residential
1504	policies and commercial residential and commercial
1505	nonresidential property policies issued by the corporation or
1506	transferred to the corporation that provide coverage for the
1507	peril of wind on risks that are located in areas eligible for
1508	coverage in the Florida Windstorm Underwriting Association as
1509	those areas were defined on January 1, 2002. The corporation may
1510	offer policies that provide multiperil coverage and the
1511	corporation shall continue to offer policies that provide
1512	coverage only for the peril of wind for risks located in areas
1513	eligible for coverage in the high-risk account. In issuing
1514	multiperil coverage, the corporation may use its approved policy
1515	forms and rates for the personal lines account. An applicant or
1516	insured who is eligible to purchase a multiperil policy from the
1517	corporation may purchase a multiperil policy from an authorized
1518	insurer without prejudice to the applicant's or insured's
1519	eligibility to prospectively purchase a policy that provides
1520	coverage only for the peril of wind from the corporation. An
1521	applicant or insured who is eligible for a corporation policy
1522	that provides coverage only for the peril of wind may elect to
1523	purchase or retain such policy and also purchase or retain
1524	coverage excluding wind from an authorized insurer without
1525	prejudice to the applicant's or insured's eligibility to
1526	prospectively purchase a policy that provides multiperil
1527	coverage from the corporation. It is the goal of the Legislature
1528	that there would be an overall average savings of 10 percent or
1529	more for a policyholder who currently has a wind-only policy
1530	with the corporation, and an ex-wind policy with a voluntary
1531	insurer or the corporation, and who then obtains a multiperil
1532	policy from the corporation. It is the intent of the Legislature
1533	that the offer of multiperil coverage in the high-risk account
1534	be made and implemented in a manner that does not adversely
1535	affect the tax-exempt status of the corporation or
1536	creditworthiness of or security for currently outstanding
1537	financing obligations or credit facilities of the high-risk
1538	account, the personal lines account, or the commercial lines
1539	account. The high-risk account must also include quota share
1540	primary insurance under subparagraph (c)2. The area eligible for
1541	coverage under the high-risk account also includes the area
1542	within Port Canaveral, which is bordered on the south by the
1543	City of Cape Canaveral, bordered on the west by the Banana
1544	River, and bordered on the north by Federal Government property.
1545	b.  The three separate accounts must be maintained as long
1546	as financing obligations entered into by the Florida Windstorm
1547	Underwriting Association or Residential Property and Casualty
1548	Joint Underwriting Association are outstanding, in accordance
1549	with the terms of the corresponding financing documents. When
1550	the financing obligations are no longer outstanding, in
1551	accordance with the terms of the corresponding financing
1552	documents, the corporation may use a single account for all
1553	revenues, assets, liabilities, losses, and expenses of the
1554	corporation. Consistent with the requirement of this
1555	subparagraph and prudent investment policies that minimize the
1556	cost of carrying debt, the board shall exercise its best efforts
1557	to retire existing debt or to obtain approval of necessary
1558	parties to amend the terms of existing debt, so as to structure
1559	the most efficient plan to consolidate the three separate
1560	accounts into a single account. By February 1, 2007, the board
1561	shall submit a report to the Financial Services Commission, the
1562	President of the Senate, and the Speaker of the House of
1563	Representatives which includes an analysis of consolidating the
1564	accounts, the actions the board has taken to minimize the cost
1565	of carrying debt, and its recommendations for executing the most
1566	efficient plan.
1567	c.  Creditors of the Residential Property and Casualty
1568	Joint Underwriting Association and of the accounts specified in
1569	sub-sub-subparagraphs a.(I) and (II) may have a claim against,
1570	and recourse to, the accounts referred to in sub-sub-
1571	subparagraphs a.(I) and (II) and shall have no claim against, or
1572	recourse to, the account referred to in sub-sub-subparagraph
1573	a.(III). Creditors of the Florida Windstorm Underwriting
1574	Association shall have a claim against, and recourse to, the
1575	account referred to in sub-sub-subparagraph a.(III) and shall
1576	have no claim against, or recourse to, the accounts referred to
1577	in sub-sub-subparagraphs a.(I) and (II).
1578	d.  Revenues, assets, liabilities, losses, and expenses not
1579	attributable to particular accounts shall be prorated among the
1580	accounts.
1581	e.  The Legislature finds that the revenues of the
1582	corporation are revenues that are necessary to meet the
1583	requirements set forth in documents authorizing the issuance of
1584	bonds under this subsection.
1585	f.  No part of the income of the corporation may inure to
1586	the benefit of any private person.
1587	3.  With respect to a deficit in an account:
1588	a.  After accounting for the Citizens policyholder
1589	surcharge imposed under sub-subparagraph i., when the remaining
1590	projected deficit incurred in a particular calendar year is not
1591	greater than 6 percent of the aggregate statewide direct written
1592	premium for the subject lines of business for the prior calendar
1593	year, the entire deficit shall be recovered through regular
1594	assessments of assessable insurers under paragraph (p) and
1595	assessable insureds.
1596	b.  After accounting for the Citizens policyholder
1597	surcharge imposed under sub-subparagraph i., when the remaining
1598	projected deficit incurred in a particular calendar year exceeds
1599	6 percent of the aggregate statewide direct written premium for
1600	the subject lines of business for the prior calendar year, the
1601	corporation shall levy regular assessments on assessable
1602	insurers under paragraph (p) and on assessable insureds in an
1603	amount equal to the greater of 6 percent of the deficit or 6
1604	percent of the aggregate statewide direct written premium for
1605	the subject lines of business for the prior calendar year. Any
1606	remaining deficit shall be recovered through emergency
1607	assessments under sub-subparagraph d.
1608	c.  Each assessable insurer's share of the amount being
1609	assessed under sub-subparagraph a. or sub-subparagraph b. shall
1610	be in the proportion that the assessable insurer's direct
1611	written premium for the subject lines of business for the year
1612	preceding the assessment bears to the aggregate statewide direct
1613	written premium for the subject lines of business for that year.
1614	The assessment percentage applicable to each assessable insured
1615	is the ratio of the amount being assessed under sub-subparagraph
1616	a. or sub-subparagraph b. to the aggregate statewide direct
1617	written premium for the subject lines of business for the prior
1618	year. Assessments levied by the corporation on assessable
1619	insurers under sub-subparagraphs a. and b. shall be paid as
1620	required by the corporation's plan of operation and paragraph
1621	(p). Assessments levied by the corporation on assessable
1622	insureds under sub-subparagraphs a. and b. shall be collected by
1623	the surplus lines agent at the time the surplus lines agent
1624	collects the surplus lines tax required by s. 626.932 and shall
1625	be paid to the Florida Surplus Lines Service Office at the time
1626	the surplus lines agent pays the surplus lines tax to the
1627	Florida Surplus Lines Service Office. Upon receipt of regular
1628	assessments from surplus lines agents, the Florida Surplus Lines
1629	Service Office shall transfer the assessments directly to the
1630	corporation as determined by the corporation.
1631	d.  Upon a determination by the board of governors that a
1632	deficit in an account exceeds the amount that will be recovered
1633	through regular assessments under sub-subparagraph a. or sub-
1634	subparagraph b., plus the amount that is expected to be
1635	recovered through surcharges under sub-subparagraph i., as to
1636	the remaining projected deficit the board shall levy, after
1637	verification by the office, emergency assessments, for as many
1638	years as necessary to cover the deficits, to be collected by
1639	assessable insurers and the corporation and collected from
1640	assessable insureds upon issuance or renewal of policies for
1641	subject lines of business, excluding National Flood Insurance
1642	policies. The amount of the emergency assessment collected in a
1643	particular year shall be a uniform percentage of that year's
1644	direct written premium for subject lines of business and all
1645	accounts of the corporation, excluding National Flood Insurance
1646	Program policy premiums, as annually determined by the board and
1647	verified by the office. The office shall verify the arithmetic
1648	calculations involved in the board's determination within 30
1649	days after receipt of the information on which the determination
1650	was based. Notwithstanding any other provision of law, the
1651	corporation and each assessable insurer that writes subject
1652	lines of business shall collect emergency assessments from its
1653	policyholders without such obligation being affected by any
1654	credit, limitation, exemption, or deferment. Emergency
1655	assessments levied by the corporation on assessable insureds
1656	shall be collected by the surplus lines agent at the time the
1657	surplus lines agent collects the surplus lines tax required by
1658	s. 626.932 and shall be paid to the Florida Surplus Lines
1659	Service Office at the time the surplus lines agent pays the
1660	surplus lines tax to the Florida Surplus Lines Service Office.
1661	The emergency assessments so collected shall be transferred
1662	directly to the corporation on a periodic basis as determined by
1663	the corporation and shall be held by the corporation solely in
1664	the applicable account. The aggregate amount of emergency
1665	assessments levied for an account under this sub-subparagraph in
1666	any calendar year may, at the discretion of the board of
1667	governors, be less than but may not exceed the greater of 10
1668	percent of the amount needed to cover the deficit, plus
1669	interest, fees, commissions, required reserves, and other costs
1670	associated with financing of the original deficit, or 10 percent
1671	of the aggregate statewide direct written premium for subject
1672	lines of business and for all accounts of the corporation for
1673	the prior year, plus interest, fees, commissions, required
1674	reserves, and other costs associated with financing the deficit.
1675	e.  The corporation may pledge the proceeds of assessments,
1676	projected recoveries from the Florida Hurricane Catastrophe
1677	Fund, other insurance and reinsurance recoverables, policyholder
1678	surcharges and other surcharges, and other funds available to
1679	the corporation as the source of revenue for and to secure bonds
1680	issued under paragraph (p), bonds or other indebtedness issued
1681	under subparagraph (c)3., or lines of credit or other financing
1682	mechanisms issued or created under this subsection, or to retire
1683	any other debt incurred as a result of deficits or events giving
1684	rise to deficits, or in any other way that the board determines
1685	will efficiently recover such deficits. The purpose of the lines
1686	of credit or other financing mechanisms is to provide additional
1687	resources to assist the corporation in covering claims and
1688	expenses attributable to a catastrophe. As used in this
1689	subsection, the term "assessments" includes regular assessments
1690	under sub-subparagraph a., sub-subparagraph b., or subparagraph
1691	(p)1. and emergency assessments under sub-subparagraph d.
1692	Emergency assessments collected under sub-subparagraph d. are
1693	not part of an insurer's rates, are not premium, and are not
1694	subject to premium tax, fees, or commissions; however, failure
1695	to pay the emergency assessment shall be treated as failure to
1696	pay premium. The emergency assessments under sub-subparagraph d.
1697	shall continue as long as any bonds issued or other indebtedness
1698	incurred with respect to a deficit for which the assessment was
1699	imposed remain outstanding, unless adequate provision has been
1700	made for the payment of such bonds or other indebtedness
1701	pursuant to the documents governing such bonds or other
1702	indebtedness.
1703	f.  As used in this subsection for purposes of any deficit
1704	incurred on or after January 25, 2007, the term "subject lines
1705	of business" means insurance written by assessable insurers or
1706	procured by assessable insureds for all property and casualty
1707	lines of business in this state, but not including workers'
1708	compensation or medical malpractice. As used in the sub-
1709	subparagraph, the term "property and casualty lines of business"
1710	includes all lines of business identified on Form 2, Exhibit of
1711	Premiums and Losses, in the annual statement required of
1712	authorized insurers by s. 624.424 and any rule adopted under
1713	this section, except for those lines identified as accident and
1714	health insurance and except for policies written under the
1715	National Flood Insurance Program or the Federal Crop Insurance
1716	Program. For purposes of this sub-subparagraph, the term
1717	"workers' compensation" includes both workers' compensation
1718	insurance and excess workers' compensation insurance.
1719	g.  The Florida Surplus Lines Service Office shall
1720	determine annually the aggregate statewide written premium in
1721	subject lines of business procured by assessable insureds and
1722	shall report that information to the corporation in a form and
1723	at a time the corporation specifies to ensure that the
1724	corporation can meet the requirements of this subsection and the
1725	corporation's financing obligations.
1726	h.  The Florida Surplus Lines Service Office shall verify
1727	the proper application by surplus lines agents of assessment
1728	percentages for regular assessments and emergency assessments
1729	levied under this subparagraph on assessable insureds and shall
1730	assist the corporation in ensuring the accurate, timely
1731	collection and payment of assessments by surplus lines agents as
1732	required by the corporation.
1733	i.  If a deficit is incurred in any account in 2008 or
1734	thereafter, the board of governors shall levy a Citizens
1735	policyholder surcharge against all policyholders of the
1736	corporation for a 12-month period, which shall be collected at
1737	the time of issuance or renewal of a policy, as a uniform
1738	percentage of the premium for the policy of up to 25 15 percent
1739	of such premium, which funds shall be used to offset the
1740	deficit. Citizens policyholder surcharges under this sub-
1741	subparagraph are not considered premium and are not subject to
1742	commissions, fees, or premium taxes. However, failure to pay
1743	such surcharges shall be treated as failure to pay premium.
1744	j.  If the amount of any assessments or surcharges
1745	collected from corporation policyholders, assessable insurers or
1746	their policyholders, or assessable insureds exceeds the amount
1747	of the deficits, such excess amounts shall be remitted to and
1748	retained by the corporation in a reserve to be used by the
1749	corporation, as determined by the board of governors and
1750	approved by the office, to pay claims or reduce any past,
1751	present, or future plan-year deficits or to reduce outstanding
1752	debt.
1753	(c)  The plan of operation of the corporation:
1754	1.  Must provide for adoption of residential property and
1755	casualty insurance policy forms and commercial residential and
1756	nonresidential property insurance forms, which forms must be
1757	approved by the office prior to use. The corporation shall adopt
1758	the following policy forms:
1759	a.  Standard personal lines policy forms that are
1760	comprehensive multiperil policies providing full coverage of a
1761	residential property equivalent to the coverage provided in the
1762	private insurance market under an HO-3, HO-4, or HO-6 policy.
1763	b.  Basic personal lines policy forms that are policies
1764	similar to an HO-8 policy or a dwelling fire policy that provide
1765	coverage meeting the requirements of the secondary mortgage
1766	market, but which coverage is more limited than the coverage
1767	under a standard policy.
1768	c.  Commercial lines residential and nonresidential policy
1769	forms that are generally similar to the basic perils of full
1770	coverage obtainable for commercial residential structures and
1771	commercial nonresidential structures in the admitted voluntary
1772	market.
1773	d.  Personal lines and commercial lines residential
1774	property insurance forms that cover the peril of wind only. The
1775	forms are applicable only to residential properties located in
1776	areas eligible for coverage under the high-risk account referred
1777	to in sub-subparagraph (b)2.a.
1778	e.  Commercial lines nonresidential property insurance
1779	forms that cover the peril of wind only. The forms are
1780	applicable only to nonresidential properties located in areas
1781	eligible for coverage under the high-risk account referred to in
1782	sub-subparagraph (b)2.a.
1783	f.  The corporation may adopt variations of the policy
1784	forms listed in sub-subparagraphs a.-e. that contain more
1785	restrictive coverage.
1786	2.a.  Must provide that the corporation adopt a program in
1787	which the corporation and authorized insurers enter into quota
1788	share primary insurance agreements for hurricane coverage, as
1789	defined in s. 627.4025(2)(a), for eligible risks, and adopt
1790	property insurance forms for eligible risks which cover the
1791	peril of wind only. As used in this subsection, the term:
1792	(I)  "Quota share primary insurance" means an arrangement
1793	in which the primary hurricane coverage of an eligible risk is
1794	provided in specified percentages by the corporation and an
1795	authorized insurer. The corporation and authorized insurer are
1796	each solely responsible for a specified percentage of hurricane
1797	coverage of an eligible risk as set forth in a quota share
1798	primary insurance agreement between the corporation and an
1799	authorized insurer and the insurance contract. The
1800	responsibility of the corporation or authorized insurer to pay
1801	its specified percentage of hurricane losses of an eligible
1802	risk, as set forth in the quota share primary insurance
1803	agreement, may not be altered by the inability of the other
1804	party to the agreement to pay its specified percentage of
1805	hurricane losses. Eligible risks that are provided hurricane
1806	coverage through a quota share primary insurance arrangement
1807	must be provided policy forms that set forth the obligations of
1808	the corporation and authorized insurer under the arrangement,
1809	clearly specify the percentages of quota share primary insurance
1810	provided by the corporation and authorized insurer, and
1811	conspicuously and clearly state that neither the authorized
1812	insurer nor the corporation may be held responsible beyond its
1813	specified percentage of coverage of hurricane losses.
1814	(II)  "Eligible risks" means personal lines residential and
1815	commercial lines residential risks that meet the underwriting
1816	criteria of the corporation and are located in areas that were
1817	eligible for coverage by the Florida Windstorm Underwriting
1818	Association on January 1, 2002.
1819	b.  The corporation may enter into quota share primary
1820	insurance agreements with authorized insurers at corporation
1821	coverage levels of 90 percent and 50 percent.
1822	c.  If the corporation determines that additional coverage
1823	levels are necessary to maximize participation in quota share
1824	primary insurance agreements by authorized insurers, the
1825	corporation may establish additional coverage levels. However,
1826	the corporation's quota share primary insurance coverage level
1827	may not exceed 90 percent.
1828	d.  Any quota share primary insurance agreement entered
1829	into between an authorized insurer and the corporation must
1830	provide for a uniform specified percentage of coverage of
1831	hurricane losses, by county or territory as set forth by the
1832	corporation board, for all eligible risks of the authorized
1833	insurer covered under the quota share primary insurance
1834	agreement.
1835	e.  Any quota share primary insurance agreement entered
1836	into between an authorized insurer and the corporation is
1837	subject to review and approval by the office. However, such
1838	agreement shall be authorized only as to insurance contracts
1839	entered into between an authorized insurer and an insured who is
1840	already insured by the corporation for wind coverage.
1841	f.  For all eligible risks covered under quota share
1842	primary insurance agreements, the exposure and coverage levels
1843	for both the corporation and authorized insurers shall be
1844	reported by the corporation to the Florida Hurricane Catastrophe
1845	Fund. For all policies of eligible risks covered under quota
1846	share primary insurance agreements, the corporation and the
1847	authorized insurer shall maintain complete and accurate records
1848	for the purpose of exposure and loss reimbursement audits as
1849	required by Florida Hurricane Catastrophe Fund rules. The
1850	corporation and the authorized insurer shall each maintain
1851	duplicate copies of policy declaration pages and supporting
1852	claims documents.
1853	g.  The corporation board shall establish in its plan of
1854	operation standards for quota share agreements which ensure that
1855	there is no discriminatory application among insurers as to the
1856	terms of quota share agreements, pricing of quota share
1857	agreements, incentive provisions if any, and consideration paid
1858	for servicing policies or adjusting claims.
1859	h.  The quota share primary insurance agreement between the
1860	corporation and an authorized insurer must set forth the
1861	specific terms under which coverage is provided, including, but
1862	not limited to, the sale and servicing of policies issued under
1863	the agreement by the insurance agent of the authorized insurer
1864	producing the business, the reporting of information concerning
1865	eligible risks, the payment of premium to the corporation, and
1866	arrangements for the adjustment and payment of hurricane claims
1867	incurred on eligible risks by the claims adjuster and personnel
1868	of the authorized insurer. Entering into a quota sharing
1869	insurance agreement between the corporation and an authorized
1870	insurer shall be voluntary and at the discretion of the
1871	authorized insurer.
1872	3.  May provide that the corporation may employ or
1873	otherwise contract with individuals or other entities to provide
1874	administrative or professional services that may be appropriate
1875	to effectuate the plan. The corporation shall have the power to
1876	borrow funds, by issuing bonds or by incurring other
1877	indebtedness, and shall have other powers reasonably necessary
1878	to effectuate the requirements of this subsection, including,
1879	without limitation, the power to issue bonds and incur other
1880	indebtedness in order to refinance outstanding bonds or other
1881	indebtedness. The corporation may, but is not required to, seek
1882	judicial validation of its bonds or other indebtedness under
1883	chapter 75. The corporation may issue bonds or incur other
1884	indebtedness, or have bonds issued on its behalf by a unit of
1885	local government pursuant to subparagraph (p)2., in the absence
1886	of a hurricane or other weather-related event, upon a
1887	determination by the corporation, subject to approval by the
1888	office, that such action would enable it to efficiently meet the
1889	financial obligations of the corporation and that such
1890	financings are reasonably necessary to effectuate the
1891	requirements of this subsection. The corporation is authorized
1892	to take all actions needed to facilitate tax-free status for any
1893	such bonds or indebtedness, including formation of trusts or
1894	other affiliated entities. The corporation shall have the
1895	authority to pledge assessments, projected recoveries from the
1896	Florida Hurricane Catastrophe Fund, other reinsurance
1897	recoverables, market equalization and other surcharges, and
1898	other funds available to the corporation as security for bonds
1899	or other indebtedness. In recognition of s. 10, Art. I of the
1900	State Constitution, prohibiting the impairment of obligations of
1901	contracts, it is the intent of the Legislature that no action be
1902	taken whose purpose is to impair any bond indenture or financing
1903	agreement or any revenue source committed by contract to such
1904	bond or other indebtedness.
1905	4.a.  Must require that the corporation operate subject to
1906	the supervision and approval of a board of governors consisting
1907	of eight individuals who are residents of this state, from
1908	different geographical areas of this state. The Governor, the
1909	Chief Financial Officer, the President of the Senate, and the
1910	Speaker of the House of Representatives shall each appoint two
1911	members of the board. At least one of the two members appointed
1912	by each appointing officer must have demonstrated expertise in
1913	insurance. The Chief Financial Officer shall designate one of
1914	the appointees as chair. All board members serve at the pleasure
1915	of the appointing officer. All members of the board of governors
1916	are subject to removal at will by the officers who appointed
1917	them. Except as otherwise provided, all board members, including
1918	the chair, must be appointed to serve for 3-year terms beginning
1919	annually on a date designated by the plan. However, for the
1920	first term beginning on or after July 1, 2009, each appointing
1921	officer shall appoint one member of the board for a 2-year term
1922	and one member for a 3-year term. Any board vacancy shall be
1923	filled for the unexpired term by the appointing officer. The
1924	Chief Financial Officer shall appoint a technical advisory group
1925	to provide information and advice to the board of governors in
1926	connection with the board's duties under this subsection. The
1927	executive director and senior managers of the corporation shall
1928	be engaged by the board and serve at the pleasure of the board.
1929	Any executive director appointed on or after July 1, 2006, is
1930	subject to confirmation by the Senate. The executive director is
1931	responsible for employing other staff as the corporation may
1932	require, subject to review and concurrence by the board.
1933	b.  The board shall create a Market Accountability Advisory
1934	Committee to assist the corporation in developing awareness of
1935	its rates and its customer and agent service levels in
1936	relationship to the voluntary market insurers writing similar
1937	coverage. The members of the advisory committee shall consist of
1938	the following 11 persons, one of whom must be elected chair by
1939	the members of the committee: four representatives, one
1940	appointed by the Florida Association of Insurance Agents, one by
1941	the Florida Association of Insurance and Financial Advisors, one
1942	by the Professional Insurance Agents of Florida, and one by the
1943	Latin American Association of Insurance Agencies; three
1944	representatives appointed by the insurers with the three highest
1945	voluntary market share of residential property insurance
1946	business in the state; one representative from the Office of
1947	Insurance Regulation; one consumer appointed by the board who is
1948	insured by the corporation at the time of appointment to the
1949	committee; one representative appointed by the Florida
1950	Association of Realtors; and one representative appointed by the
1951	Florida Bankers Association. All members must serve for 3-year
1952	terms and may serve for consecutive terms. The committee shall
1953	report to the corporation at each board meeting on insurance
1954	market issues which may include rates and rate competition with
1955	the voluntary market; service, including policy issuance, claims
1956	processing, and general responsiveness to policyholders,
1957	applicants, and agents; and matters relating to depopulation.
1958	5.  Must provide a procedure for determining the
1959	eligibility of a risk for coverage, as follows:
1960	a.  Subject to the provisions of s. 627.3517, with respect
1961	to personal lines residential risks, if the risk is offered
1962	coverage from an authorized insurer at the insurer's approved
1963	rate under either a standard policy including wind coverage or,
1964	if consistent with the insurer's underwriting rules as filed
1965	with the office, a basic policy including wind coverage, for a
1966	new application to the corporation for coverage, the risk is not
1967	eligible for any policy issued by the corporation unless the
1968	premium for coverage from the authorized insurer is more than 15
1969	percent greater than the premium for comparable coverage from
1970	the corporation. If the risk is not able to obtain any such
1971	offer, the risk is eligible for either a standard policy
1972	including wind coverage or a basic policy including wind
1973	coverage issued by the corporation; however, if the risk could
1974	not be insured under a standard policy including wind coverage
1975	regardless of market conditions, the risk shall be eligible for
1976	a basic policy including wind coverage unless rejected under
1977	subparagraph 8. However, with regard to a policyholder of the
1978	corporation or a policyholder removed from the corporation
1979	through an assumption agreement until the end of the assumption
1980	period, the policyholder remains eligible for coverage from the
1981	corporation regardless of any offer of coverage from an
1982	authorized insurer or surplus lines insurer. The corporation
1983	shall determine the type of policy to be provided on the basis
1984	of objective standards specified in the underwriting manual and
1985	based on generally accepted underwriting practices.
1986	(I)  If the risk accepts an offer of coverage through the
1987	market assistance plan or an offer of coverage through a
1988	mechanism established by the corporation before a policy is
1989	issued to the risk by the corporation or during the first 30
1990	days of coverage by the corporation, and the producing agent who
1991	submitted the application to the plan or to the corporation is
1992	not currently appointed by the insurer, the insurer shall:
1993	(A)  Pay to the producing agent of record of the policy,
1994	for the first year, an amount that is the greater of the
1995	insurer's usual and customary commission for the type of policy
1996	written or a fee equal to the usual and customary commission of
1997	the corporation; or
1998	(B)  Offer to allow the producing agent of record of the
1999	policy to continue servicing the policy for a period of not less
2000	than 1 year and offer to pay the agent the greater of the
2001	insurer's or the corporation's usual and customary commission
2002	for the type of policy written.
2003
2004	If the producing agent is unwilling or unable to accept
2005	appointment, the new insurer shall pay the agent in accordance
2006	with sub-sub-sub-subparagraph (A).
2007	(II)  When the corporation enters into a contractual
2008	agreement for a take-out plan, the producing agent of record of
2009	the corporation policy is entitled to retain any unearned
2010	commission on the policy, and the insurer shall:
2011	(A)  Pay to the producing agent of record of the
2012	corporation policy, for the first year, an amount that is the
2013	greater of the insurer's usual and customary commission for the
2014	type of policy written or a fee equal to the usual and customary
2015	commission of the corporation; or
2016	(B)  Offer to allow the producing agent of record of the
2017	corporation policy to continue servicing the policy for a period
2018	of not less than 1 year and offer to pay the agent the greater
2019	of the insurer's or the corporation's usual and customary
2020	commission for the type of policy written.
2021
2022	If the producing agent is unwilling or unable to accept
2023	appointment, the new insurer shall pay the agent in accordance
2024	with sub-sub-sub-subparagraph (A).
2025	b.  With respect to commercial lines residential risks, for
2026	a new application to the corporation for coverage, if the risk
2027	is offered coverage under a policy including wind coverage from
2028	an authorized insurer at its approved rate, the risk is not
2029	eligible for any policy issued by the corporation unless the
2030	premium for coverage from the authorized insurer is more than 15
2031	percent greater than the premium for comparable coverage from
2032	the corporation. If the risk is not able to obtain any such
2033	offer, the risk is eligible for a policy including wind coverage
2034	issued by the corporation. However, with regard to a
2035	policyholder of the corporation or a policyholder removed from
2036	the corporation through an assumption agreement until the end of
2037	the assumption period, the policyholder remains eligible for
2038	coverage from the corporation regardless of any offer of
2039	coverage from an authorized insurer or surplus lines insurer.
2040	(I)  If the risk accepts an offer of coverage through the
2041	market assistance plan or an offer of coverage through a
2042	mechanism established by the corporation before a policy is
2043	issued to the risk by the corporation or during the first 30
2044	days of coverage by the corporation, and the producing agent who
2045	submitted the application to the plan or the corporation is not
2046	currently appointed by the insurer, the insurer shall:
2047	(A)  Pay to the producing agent of record of the policy,
2048	for the first year, an amount that is the greater of the
2049	insurer's usual and customary commission for the type of policy
2050	written or a fee equal to the usual and customary commission of
2051	the corporation; or
2052	(B)  Offer to allow the producing agent of record of the
2053	policy to continue servicing the policy for a period of not less
2054	than 1 year and offer to pay the agent the greater of the
2055	insurer's or the corporation's usual and customary commission
2056	for the type of policy written.
2057
2058	If the producing agent is unwilling or unable to accept
2059	appointment, the new insurer shall pay the agent in accordance
2060	with sub-sub-sub-subparagraph (A).
2061	(II)  When the corporation enters into a contractual
2062	agreement for a take-out plan, the producing agent of record of
2063	the corporation policy is entitled to retain any unearned
2064	commission on the policy, and the insurer shall:
2065	(A)  Pay to the producing agent of record of the
2066	corporation policy, for the first year, an amount that is the
2067	greater of the insurer's usual and customary commission for the
2068	type of policy written or a fee equal to the usual and customary
2069	commission of the corporation; or
2070	(B)  Offer to allow the producing agent of record of the
2071	corporation policy to continue servicing the policy for a period
2072	of not less than 1 year and offer to pay the agent the greater
2073	of the insurer's or the corporation's usual and customary
2074	commission for the type of policy written.
2075
2076	If the producing agent is unwilling or unable to accept
2077	appointment, the new insurer shall pay the agent in accordance
2078	with sub-sub-sub-subparagraph (A).
2079	c.  For purposes of determining comparable coverage under
2080	sub-subparagraphs a. and b., the comparison shall be based on
2081	those forms and coverages that are reasonably comparable. The
2082	corporation may rely on a determination of comparable coverage
2083	and premium made by the producing agent who submits the
2084	application to the corporation, made in the agent's capacity as
2085	the corporation's agent. A comparison may be made solely of the
2086	premium with respect to the main building or structure only on
2087	the following basis: the same coverage A or other building
2088	limits; the same percentage hurricane deductible that applies on
2089	an annual basis or that applies to each hurricane for commercial
2090	residential property; the same percentage of ordinance and law
2091	coverage, if the same limit is offered by both the corporation
2092	and the authorized insurer; the same mitigation credits, to the
2093	extent the same types of credits are offered both by the
2094	corporation and the authorized insurer; the same method for loss
2095	payment, such as replacement cost or actual cash value, if the
2096	same method is offered both by the corporation and the
2097	authorized insurer in accordance with underwriting rules; and
2098	any other form or coverage that is reasonably comparable as
2099	determined by the board. If an application is submitted to the
2100	corporation for wind-only coverage in the high-risk account, the
2101	premium for the corporation's wind-only policy plus the premium
2102	for the ex-wind policy that is offered by an authorized insurer
2103	to the applicant shall be compared to the premium for multiperil
2104	coverage offered by an authorized insurer, subject to the
2105	standards for comparison specified in this subparagraph. If the
2106	corporation or the applicant requests from the authorized
2107	insurer a breakdown of the premium of the offer by types of
2108	coverage so that a comparison may be made by the corporation or
2109	its agent and the authorized insurer refuses or is unable to
2110	provide such information, the corporation may treat the offer as
2111	not being an offer of coverage from an authorized insurer at the
2112	insurer's approved rate.
2113	6.  Must include rules for classifications of risks and
2114	rates therefor.
2115	7.  Must provide that if premium and investment income for
2116	an account attributable to a particular calendar year are in
2117	excess of projected losses and expenses for the account
2118	attributable to that year, such excess shall be held in surplus
2119	in the account. Such surplus shall be available to defray
2120	deficits in that account as to future years and shall be used
2121	for that purpose prior to assessing assessable insurers and
2122	assessable insureds as to any calendar year.
2123	8.  Must provide objective criteria and procedures to be
2124	uniformly applied for all applicants in determining whether an
2125	individual risk is so hazardous as to be uninsurable. In making
2126	this determination and in establishing the criteria and
2127	procedures, the following shall be considered:
2128	a.  Whether the likelihood of a loss for the individual
2129	risk is substantially higher than for other risks of the same
2130	class; and
2131	b.  Whether the uncertainty associated with the individual
2132	risk is such that an appropriate premium cannot be determined.
2133
2134	The acceptance or rejection of a risk by the corporation shall
2135	be construed as the private placement of insurance, and the
2136	provisions of chapter 120 shall not apply.
2137	9.  Must provide that the corporation shall make its best
2138	efforts to procure catastrophe reinsurance at reasonable rates,
2139	to cover its projected 100-year probable maximum loss as
2140	determined by the board of governors.
2141	10.  The policies issued by the corporation must provide
2142	that, if the corporation or the market assistance plan obtains
2143	an offer from an authorized insurer to cover the risk at its
2144	approved rates, the risk is no longer eligible for renewal
2145	through the corporation, except as otherwise provided in this
2146	subsection.
2147	11.  Corporation policies and applications must include a
2148	notice that the corporation policy could, under this section, be
2149	replaced with a policy issued by an authorized insurer that does
2150	not provide coverage identical to the coverage provided by the
2151	corporation. The notice shall also specify that acceptance of
2152	corporation coverage creates a conclusive presumption that the
2153	applicant or policyholder is aware of this potential.
2154	12.  May establish, subject to approval by the office,
2155	different eligibility requirements and operational procedures
2156	for any line or type of coverage for any specified county or
2157	area if the board determines that such changes to the
2158	eligibility requirements and operational procedures are
2159	justified due to the voluntary market being sufficiently stable
2160	and competitive in such area or for such line or type of
2161	coverage and that consumers who, in good faith, are unable to
2162	obtain insurance through the voluntary market through ordinary
2163	methods would continue to have access to coverage from the
2164	corporation. When coverage is sought in connection with a real
2165	property transfer, such requirements and procedures shall not
2166	provide for an effective date of coverage later than the date of
2167	the closing of the transfer as established by the transferor,
2168	the transferee, and, if applicable, the lender.
2169	13.  Must provide that, with respect to the high-risk
2170	account, any assessable insurer with a surplus as to
2171	policyholders of $25 million or less writing 25 percent or more
2172	of its total countrywide property insurance premiums in this
2173	state may petition the office, within the first 90 days of each
2174	calendar year, to qualify as a limited apportionment company. A
2175	regular assessment levied by the corporation on a limited
2176	apportionment company for a deficit incurred by the corporation
2177	for the high-risk account in 2006 or thereafter may be paid to
2178	the corporation on a monthly basis as the assessments are
2179	collected by the limited apportionment company from its insureds
2180	pursuant to s. 627.3512, but the regular assessment must be paid
2181	in full within 12 months after being levied by the corporation.
2182	A limited apportionment company shall collect from its
2183	policyholders any emergency assessment imposed under sub-
2184	subparagraph (b)3.d. The plan shall provide that, if the office
2185	determines that any regular assessment will result in an
2186	impairment of the surplus of a limited apportionment company,
2187	the office may direct that all or part of such assessment be
2188	deferred as provided in subparagraph (p)4. However, there shall
2189	be no limitation or deferment of an emergency assessment to be
2190	collected from policyholders under sub-subparagraph (b)3.d.
2191	14.  Must provide that the corporation appoint as its
2192	licensed agents only those agents who also hold an appointment
2193	as defined in s. 626.015(3) with an insurer who at the time of
2194	the agent's initial appointment by the corporation is authorized
2195	to write and is actually writing personal lines residential
2196	property coverage, commercial residential property coverage, or
2197	commercial nonresidential property coverage within the state.
2198	15.  Must provide, by July 1, 2007, a premium payment plan
2199	option to its policyholders which allows at a minimum for
2200	quarterly and semiannual payment of premiums. A monthly payment
2201	plan may, but is not required to, be offered.
2202	16.  Must limit coverage on mobile homes or manufactured
2203	homes built prior to 1994 to actual cash value of the dwelling
2204	rather than replacement costs of the dwelling.
2205	17.  May provide such limits of coverage as the board
2206	determines, consistent with the requirements of this subsection.
2207	18.  May require commercial property to meet specified
2208	hurricane mitigation construction features as a condition of
2209	eligibility for coverage.
2210	(m)1.  Rates for coverage provided by the corporation shall
2211	be actuarially sound and subject to the requirements of s.
2212	627.062, except as otherwise provided in this paragraph. The
2213	corporation shall file its recommended rates with the office at
2214	least annually. The corporation shall provide any additional
2215	information regarding the rates which the office requires. The
2216	office shall consider the recommendations of the board and issue
2217	a final order establishing the rates for the corporation within
2218	45 days after the recommended rates are filed. The corporation
2219	may not pursue an administrative challenge or judicial review of
2220	the final order of the office.
2221	2.  In addition to the rates otherwise determined pursuant
2222	to this paragraph, the corporation shall impose and collect an
2223	amount equal to the premium tax provided for in s. 624.509 to
2224	augment the financial resources of the corporation.
2225	3.  After the public hurricane loss-projection model under
2226	s. 627.06281 has been found to be accurate and reliable by the
2227	Florida Commission on Hurricane Loss Projection Methodology,
2228	that model shall serve as the minimum benchmark for determining
2229	the windstorm portion of the corporation's rates. This
2230	subparagraph does not require or allow the corporation to adopt
2231	rates lower than the rates otherwise required or allowed by this
2232	paragraph.
2233	4.  The rate filings for the corporation which were
2234	approved by the office and which took effect January 1, 2007,
2235	are rescinded, except for those rates that were lowered. As soon
2236	as possible, the corporation shall begin using the lower rates
2237	that were in effect on December 31, 2006, and shall provide
2238	refunds to policyholders who have paid higher rates as a result
2239	of that rate filing. The rates in effect on December 31, 2006,
2240	shall remain in effect for the 2007 and 2008 calendar years
2241	except for any rate change that results in a lower rate. The
2242	next rate change that may increase rates shall take effect
2243	pursuant to a new rate filing recommended by the corporation and
2244	established by the office, subject to the requirements of this
2245	paragraph.
2246	5.  Beginning on July 15, 2009, and each year thereafter,
2247	the corporation must make a recommended actuarially sound rate
2248	filing for each personal and commercial line of business it
2249	writes, to be effective no earlier than January 1, 2010.
2250	6.  The Legislature finds that it is in the public interest
2251	to ensure that actuarially sound rates for coverage by the
2252	corporation be implemented incrementally to provide rate
2253	stability and predictability to its policyholders.
2254	7.  Beginning on or after January 1, 2010, the corporation
2255	shall begin to implement actuarially sound rates for each
2256	commercial and personal line of business it writes, which may
2257	not exceed an average statewide increase of 10 percent or exceed
2258	20 percent for any single policy issued by the corporation,
2259	excluding coverage changes and surcharges.
2260	8.  The corporation's incremental implementation of rates
2261	as prescribed in subparagraph 7. shall cease for any line of
2262	business written by the corporation after actuarially sound
2263	rates as prescribed in subparagraph 1. are achieved. Thereafter,
2264	the corporation shall annually make a recommended actuarially
2265	sound rate filing for each commercial and personal line of
2266	business it writes.
2267	9.  In addition to the rate increase required pursuant to
2268	subparagraph 7., the corporation may increase its rates an
2269	amount sufficient to recoup additional reimbursement premium
2270	paid to the Florida Hurricane Catastrophe Fund due to the
2271	application of a cash build-up factor.
2272	10.  Beginning April 1, 2010, and each quarter thereafter,
2273	the corporation shall transfer 10 percent of the funds received
2274	from the rate increase prescribed by subparagraph 7. to the
2275	Insurance Regulatory Trust Fund in the Department of Financial
2276	Services. The corporation's transfer of such funds shall cease
2277	upon the corporation's implementation of actuarially sound rates
2278	as prescribed in subparagraph 1.
2279	(x)  It is the intent of the Legislature that the
2280	amendments to this subsection enacted in 2002 should, over time,
2281	reduce the probable maximum windstorm losses in the residual
2282	markets and should reduce the potential assessments to be levied
2283	on property insurers and policyholders statewide. In furtherance
2284	of this intent:
2285	1.  The board shall, on or before February 1 of each year,
2286	provide a report to the President of the Senate and the Speaker
2287	of the House of Representatives showing the reduction or
2288	increase in the 100-year probable maximum loss attributable to
2289	wind-only coverages and the quota share program under this
2290	subsection combined, as compared to the benchmark 100-year
2291	probable maximum loss of the Florida Windstorm Underwriting
2292	Association. For purposes of this paragraph, the benchmark 100-
2293	year probable maximum loss of the Florida Windstorm Underwriting
2294	Association shall be the calculation dated February 2001 and
2295	based on November 30, 2000, exposures. In order to ensure
2296	comparability of data, the board shall use the same methods for
2297	calculating its probable maximum loss as were used to calculate
2298	the benchmark probable maximum loss.
2299	2.  Beginning February 1, 2010, if the report under
2300	subparagraph 1. for any year indicates that the 100-year
2301	probable maximum loss attributable to wind-only coverages and
2302	the quota share program combined does not reflect a reduction of
2303	at least 25 percent from the benchmark, the board shall reduce
2304	the boundaries of the high-risk area eligible for wind-only
2305	coverages under this subsection in a manner calculated to reduce
2306	such probable maximum loss to an amount at least 25 percent
2307	below the benchmark.
2308	3.  Beginning February 1, 2015, if the report under
2309	subparagraph 1. for any year indicates that the 100-year
2310	probable maximum loss attributable to wind-only coverages and
2311	the quota share program combined does not reflect a reduction of
2312	at least 50 percent from the benchmark, the boundaries of the
2313	high-risk area eligible for wind-only coverages under this
2314	subsection shall be reduced by the elimination of any area that
2315	is not seaward of a line 1,000 feet inland from the Intracoastal
2316	Waterway.
2317	Section 14.  Subsection (2) of section 627.711, Florida
2318	Statutes, is amended, and subsection (3) is added to that
2319	section, to read:
2320	627.711  Notice of premium discounts for hurricane loss
2321	mitigation; uniform mitigation verification inspection form.--
2322	(2)(a)  By July 1, 2007, the Financial Services Commission
2323	shall develop by rule a uniform mitigation verification
2324	inspection form that shall be used by all insurers when
2325	submitted by policyholders for the purpose of factoring
2326	discounts for wind insurance. In developing the form, the
2327	commission shall seek input from insurance, construction, and
2328	building code representatives. Further, the commission shall
2329	provide guidance as to the length of time the inspection results
2330	are valid. An insurer shall accept as valid a uniform mitigation
2331	verification form certified by the Department of Financial
2332	Services or signed by:
2333	(a)  A hurricane mitigation inspector employed by an
2334	approved My Safe Florida Home wind certification entity;
2335	1.(b)  A building code inspector certified under s.
2336	468.607;
2337	2.(c)  A general, building, or residential contractor
2338	licensed under s. 489.111;
2339	3.(d)  A professional engineer licensed under s. 471.015
2340	who has passed the appropriate equivalency test of the Building
2341	Code Training Program as required by s. 553.841; or
2342	4.(e)  A professional architect licensed under s. 481.213.
2343	(b)  An insurer may contract with inspection firms at the
2344	insurer's expense to review mitigation verification forms and to
2345	reinspect properties for which the insurer receives mitigation
2346	verification forms to ensure that the forms are valid.
2347	(3)  An individual or entity who knowingly provides or
2348	utters a false or fraudulent mitigation verification form with
2349	the intent to obtain or receive a discount on an insurance
2350	premium to which the individual or entity is not entitled
2351	commits a misdemeanor of the first degree, punishable as
2352	provided in s. 775.082 or s. 775.083.
2353	Section 15.  Subsection (1) and paragraph (c) of subsection
2354	(2) of section 627.712, Florida Statutes, are amended to read:
2355	627.712  Residential windstorm coverage required;
2356	availability of exclusions for windstorm or contents.--
2357	(1)  An insurer issuing a residential property insurance
2358	policy must provide windstorm coverage. Except as provided in
2359	paragraph (2)(c), this section does not apply with respect to
2360	risks that are eligible for wind-only coverage from Citizens
2361	Property Insurance Corporation under s. 627.351(6) and with
2362	respect to risks that are not eligible for coverage from
2363	Citizens Property Insurance Corporation under s. 627.351(6)(a)3.
2364	or 5. A risk ineligible for Citizens coverage under s.
2365	627.351(6)(a)3. or 5. is exempt from the requirements of this
2366	section only if the risk is located within the boundaries of the
2367	high-risk account of the corporation.
2368	(2)  A property insurer must make available, at the option
2369	of the policyholder, an exclusion of windstorm coverage.
2370	(c)  If the residential structure is eligible for wind-only
2371	coverage from Citizens Property Insurance Corporation, An
2372	insurer nonrenewing a policy and issuing a replacement policy,
2373	or issuing a new policy, that does not provide wind coverage
2374	shall provide a notice to the mortgageholder or lienholder
2375	indicating the policyholder has elected coverage that does not
2376	cover wind.
2377	Section 16.  Section 631.65, Florida Statutes, is amended
2378	to read:
2379	631.65  Prohibited advertisement or solicitation.--No
2380	person shall make, publish, disseminate, circulate, or place
2381	before the public, or cause, directly or indirectly, to be made,
2382	published, disseminated, circulated, or placed before the
2383	public, in a newspaper, magazine, or other publication, or in
2384	the form of a notice, circular, pamphlet, letter, or poster, or
2385	over any radio station or television station, or in any other
2386	way, any advertisement, announcement, or statement which uses
2387	the existence of the insurance guaranty association for the
2388	purpose of sales, solicitation, or inducement to purchase any
2389	form of insurance covered under this part. However, nothing in
2390	this section may be construed to prevent a duly licensed
2391	insurance agent from providing explanations concerning the
2392	existence or application of the insurance guaranty association
2393	to policyholders, prospective policyholders, or applicants for
2394	coverage.
2395	Section 17.  The My Safe Florida Home Program specified in
2396	s. 215.5586, Florida Statutes, shall use the funds transferred
2397	to the Insurance Regulatory Trust Fund pursuant to s.
2398	627.351(6)(m)10., Florida Statutes, solely for the provision of
2399	mitigation grants in accordance with s. 215.5586(2), Florida
2400	Statutes, to policyholders of Citizens Property Insurance
2401	Corporation who are otherwise eligible for grants from the My
2402	Safe Florida Home Program. The department shall establish a
2403	separate account within the trust fund for accounting purposes.
2404	Section 18.  Section 626.854, Florida Statutes, is amended
2405	to read:
2406	626.854  "Public adjuster" defined; prohibitions.--The
2407	Legislature finds that it is necessary for the protection of the
2408	public to regulate public insurance adjusters and to prevent the
2409	unauthorized practice of law.
2410	(1)  A "public adjuster" is any person, except a duly
2411	licensed attorney at law as hereinafter in s. 626.860 provided,
2412	who, for money, commission, or any other thing of value,
2413	prepares, completes, or files an insurance claim form for an
2414	insured or third-party claimant or who, for money, commission,
2415	or any other thing of value, acts or aids in any manner on
2416	behalf of an insured or third-party claimant in negotiating for
2417	or effecting the settlement of a claim or claims for loss or
2418	damage covered by an insurance contract or who advertises for
2419	employment as an adjuster of such claims, and also includes any
2420	person who, for money, commission, or any other thing of value,
2421	solicits, investigates, or adjusts such claims on behalf of any
2422	such public adjuster.
2423	(2)  This definition does not apply to:
2424	(a)  A licensed health care provider or employee thereof
2425	who prepares or files a health insurance claim form on behalf of
2426	a patient.
2427	(b)  A person who files a health claim on behalf of another
2428	and does so without compensation.
2429	(3)  A public adjuster may not give legal advice. A public
2430	adjuster may not act on behalf of or aid any person in
2431	negotiating or settling a claim relating to bodily injury,
2432	death, or noneconomic damages.
2433	(4)  For purposes of this section, the term "insured"
2434	includes only the policyholder and any beneficiaries named or
2435	similarly identified in the policy.
2436	(5)  A public adjuster may not directly or indirectly
2437	through any other person or entity solicit an insured or
2438	claimant by any means except on Monday through Saturday of each
2439	week and only between the hours of 8 a.m. and 8 p.m. on those
2440	days.
2441	(6)  A public adjuster may not directly or indirectly
2442	through any other person or entity initiate contact or engage in
2443	face-to-face or telephonic solicitation or enter into a contract
2444	with any insured or claimant under an insurance policy until at
2445	least 48 hours after the occurrence of an event that may be the
2446	subject of a claim under the insurance policy unless contact is
2447	initiated by the insured or claimant.
2448	(7)  An insured or claimant may cancel a public adjuster's
2449	contract to adjust a claim without penalty or obligation within
2450	3 business days after the date on which the contract is executed
2451	or within 3 business days after the date on which the insured or
2452	claimant has notified the insurer of the claim, by phone or in
2453	writing, whichever is later. The public adjuster's contract
2454	shall disclose to the insured or claimant his or her right to
2455	cancel the contract and advise the insured or claimant that
2456	notice of cancellation must be submitted in writing and sent by
2457	certified mail, return receipt requested, or other form of
2458	mailing which provides proof thereof, to the public adjuster at
2459	the address specified in the contract; provided, during any
2460	state of emergency as declared by the Governor and for a period
2461	of 1 year after the date of loss, the insured or claimant shall
2462	have 5 business days after the date on which the contract is
2463	executed to cancel a public adjuster's contract.
2464	(8)  It is an unfair and deceptive insurance trade practice
2465	pursuant to s. 626.9541 for a public adjuster or any other
2466	person to circulate or disseminate any advertisement,
2467	announcement, or statement containing any assertion,
2468	representation, or statement with respect to the business of
2469	insurance which is untrue, deceptive, or misleading.
2470	(9)  A public adjuster, a public adjuster apprentice, or
2471	any person or entity acting on behalf of a public adjuster or
2472	public adjuster apprentice may not give or offer to give a
2473	monetary loan or advance to a client or prospective client.
2474	(10)  A public adjuster, public adjuster apprentice, or any
2475	individual or entity acting on behalf of a public adjuster or
2476	public adjuster apprentice may not give or offer to give,
2477	directly or indirectly, any article of merchandise having a
2478	value in excess of $25 to any individual for the purpose of
2479	advertising or as an inducement to entering into a contract with
2480	a public adjuster.
2481	(11)(a)  If a public adjuster enters into a contract with
2482	an insured or claimant to reopen a claim or to file a
2483	supplemental claim that seeks additional payments for a claim
2484	that has been previously paid in part or in full or settled by
2485	the insurer, the public adjuster may not charge, agree to, or
2486	accept any compensation, payment, commission, fee, or other
2487	thing of value based on a previous settlement or previous claim
2488	payments by the insurer for the same cause of loss. The charge,
2489	compensation, payment, commission, fee, or other thing of value
2490	may be based only on the claim payments or settlement obtained
2491	through the work of the public adjuster after entering into the
2492	contract with the insured or claimant. The contracts described
2493	in this paragraph are not subject to the limitations in
2494	paragraph (b).
2495	(b)  A public adjuster may not charge, agree to, or accept
2496	any compensation, payment, commission, fee, or other thing of
2497	value in excess of:
2498	1.  Ten percent of the amount of insurance claim payments
2499	by the insurer for claims based on events that are the subject
2500	of a declaration of a state of emergency by the Governor. This
2501	provision applies to claims made during the period of 1 year
2502	after the declaration of emergency.
2503	2.  Twenty percent of the amount of all other insurance
2504	claim payments.
2505	(12)  Each public adjuster shall provide to the claimant or
2506	insured a written estimate of the loss to assist in the
2507	submission of a proof of loss or any other claim for payment of
2508	insurance proceeds. The public adjuster shall retain such
2509	written estimate for at least 5 years and shall make such
2510	estimate available to the claimant or insured and the department
2511	upon request.
2512	(13)  A public adjuster, public adjuster apprentice, or any
2513	person acting on behalf of a public adjuster or apprentice may
2514	not accept referrals of business from any person with whom the
2515	public adjuster conducts business if there is any form or manner
2516	of agreement to compensate the person, whether directly or
2517	indirectly, for referring business to the public adjuster. A
2518	public adjuster may not compensate any person, except for
2519	another public adjuster, whether directly or indirectly, for the
2520	principal purpose of referring business to the public adjuster.
2521
2522	The provisions of subsections (5)-(13) (5)-(12) apply only to
2523	residential property insurance policies and condominium
2524	association policies as defined in s. 718.111(11).
2525	Section 19.  Paragraph (e) of subsection (1) of section
2526	626.865, Florida Statutes, is amended to read:
2527	626.865  Public adjuster's qualifications, bond.--
2528	(1)  The department shall issue a license to an applicant
2529	for a public adjuster's license upon determining that the
2530	applicant has paid the applicable fees specified in s. 624.501
2531	and possesses the following qualifications:
2532	(e)  Has passed the required written examination.
2533	Section 20.  Section 626.8651, Florida Statutes, is amended
2534	to read:
2535	626.8651  Public adjuster apprentice license;
2536	qualifications.--
2537	(1)  The department shall issue a license as a public
2538	adjuster apprentice to an applicant who is:
2539	(a)  A natural person at least 18 years of age.
2540	(b)  A United States citizen or legal alien who possesses
2541	work authorization from the United States Bureau of Citizenship
2542	and Immigration Services and is a resident of this state.
2543	(c)  Trustworthy and has such business reputation as would
2544	reasonably ensure that the applicant will conduct business as a
2545	public adjuster apprentice fairly and in good faith and without
2546	detriment to the public.
2547	(2)  All applicable license fees, as prescribed in s.
2548	624.501, must be paid in full before issuance of the license.
2549	(3)  The applicant must have passed the required written
2550	examination before issuance of the license.
2551	(4)  At the time of application for license as a public
2552	adjuster apprentice, each applicant must have completed the
2553	training and received the Accredited Claims Adjuster designation
2554	which provides experience, training, and instruction concerning
2555	the adjusting of damages and losses under insurance contracts,
2556	other than life and annuity contracts, provides education on the
2557	terms and effects of the provisions of those types of insurance
2558	contracts, and provides knowledge of the laws of this state
2559	relating to such contracts as to enable and qualify him or her
2560	to engage in the business of a public adjuster apprentice fairly
2561	and without injury to the public or any member of the public
2562	with whom the applicant may conduct business as a public
2563	adjuster apprentice.
2564	(5)(3)  At the time of application for license as a public
2565	adjuster apprentice, the applicant shall file with the
2566	department a bond executed and issued by a surety insurer
2567	authorized to transact such business in this state in the amount
2568	of $50,000, conditioned upon the faithful performance of his or
2569	her duties as a public adjuster apprentice under the license for
2570	which the applicant has applied, and thereafter maintain the
2571	bond unimpaired throughout the existence of the license and for
2572	at least 1 year after termination of the license. The bond shall
2573	be in favor of the department and shall specifically authorize
2574	recovery by the department of the damages sustained in case the
2575	licensee commits fraud or unfair practices in connection with
2576	his or her business as a public adjuster apprentice. The
2577	aggregate liability of the surety for all such damages may not
2578	exceed the amount of the bond, and the bond may not be
2579	terminated by the issuing insurer unless written notice of at
2580	least 30 days is given to the licensee and filed with the
2581	department.
2582	(6)(4)  A public adjuster apprentice shall complete at a
2583	minimum 100 hours of employment per month for 12 months of
2584	employment under the supervision of a licensed and appointed
2585	all-lines public adjuster in order to qualify for licensure as a
2586	public adjuster. The department may adopt rules that establish
2587	standards for such employment requirements.
2588	(7)(5)  An appointing public adjusting firm shall maintain
2589	no more than 12 public adjuster apprentices simultaneously;
2590	however, a supervising public adjuster shall be responsible for
2591	no more than 3 public adjuster apprentices simultaneously and
2592	accountable for the acts of all a public adjuster apprentices
2593	that apprentice which are related to transacting business as a
2594	public adjuster apprentice.
2595	(8)(6)  An apprentice license is effective for 18 months
2596	unless the license expires due to lack of maintaining an
2597	appointment; is surrendered by the licensee; is terminated,
2598	suspended, or revoked by the department; or is canceled by the
2599	department upon issuance of a public adjuster license. The
2600	department may not issue a public adjuster apprentice license to
2601	any individual who has held such a license in this state within
2602	2 years after expiration, surrender, termination, revocation, or
2603	cancellation of the license.
2604	(9)(7)  After completing the requirements for employment as
2605	a public adjuster apprentice, the licensee may file an
2606	application for a public adjuster license. The applicant and
2607	supervising public adjuster or public adjusting firm must each
2608	file a sworn affidavit, on a form prescribed by the department,
2609	verifying that the employment of the public adjuster apprentice
2610	meets the requirements of this section.
2611	(10)(8)  In no event shall a public adjuster apprentice
2612	licensed under this section perform any of the functions for
2613	which a public adjuster's license is required after expiration
2614	of the public adjuster apprentice license without having
2615	obtained a public adjuster license.
2616	(11)(9)  A public adjuster apprentice has the same
2617	authority as the licensed public adjuster or public adjusting
2618	firm that employs the apprentice except that an apprentice may
2619	not execute contracts for the services of a public adjuster or
2620	public adjusting firm and may not solicit contracts for the
2621	services except under the direct supervision and guidance of the
2622	supervisory public adjuster. An individual may not be, act as,
2623	or hold himself or herself out to be a public adjuster
2624	apprentice unless the individual is licensed and holds a current
2625	appointment by a licensed public all-lines adjuster or a public
2626	adjusting firm that employs a licensed all-lines public
2627	adjuster.
2628	Section 21.  Subsection (7) is added to section 627.7011,
2629	Florida Statutes, to read:
2630	627.7011  Homeowners' policies; offer of replacement cost
2631	coverage and law and ordinance coverage.--
2632	(7)  This section does not prohibit an insurer from
2633	exercising its right to repair damaged property in compliance
2634	with its policy and s. 627.702(7).
2635	Section 22.  This act shall take effect upon becoming a
2636	law.

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