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	requiring the Office of Program Policy Analysis and
150	Government Accountability to submit a report to the
151	Legislature, Commissioner of Insurance, Chief Financial
152	Officer, and Governor reviewing laws governing public
153	adjuster; specifying review requirements; specifying a
154	required notice for real property insurance  policies
155	issued or renewed in this state; providing notice
156	requirements; amending s. 626.9541, F.S.; authorizing
157	licensed general lines agents to collect a service charge
158	for processing certain installment payments under certain
159	circumstances; providing a limitation; providing
160	requirements; amending s. 624.46226, F.S.; authorizing
161	reinsurance companies to issue coverage directly to
162	certain public housing authorities  under certain
163	circumstances; specifying that a public housing authority
164	is considered an insurer under certain circumstances;
165	requiring that certain reinsurance contracts issued to
166	public housing authorities receive the same tax treatment
167	as contracts issued to insurance companies; providing
168	construction; requiring rating agencies or rating services
169	to disclose certain information in public reports and
170	ratings; providing an effective date.
171
172	Be It Enacted by the Legislature of the State of Florida:
173
174	Section 1.  Subsection (20) is added to section 215.47,
175	Florida Statutes, to read:
176	215.47  Investments; authorized securities; loan of
177	securities.--Subject to the limitations and conditions of the
178	State Constitution or of the trust agreement relating to a trust
179	fund, moneys available for investments under ss. 215.44-215.53
180	may be invested as follows:
181	(20)  The State Board of Administration may, consistent
182	with sound investment policy, invest in revenue bonds issued
183	pursuant to s. 215.555(6).
184	Section 2.  Paragraph (e) of subsection (2), paragraphs (b)
185	and (c) of subsection (4), paragraph (b) of subsection (5), and
186	subsection (17) of section 215.555, Florida Statutes, are
187	amended, and paragraph (f) is added to subsection (7) of that
188	section, to read:
189	215.555  Florida Hurricane Catastrophe Fund.--
190	(2)  DEFINITIONS.--As used in this section:
191	(e)  "Retention" means the amount of losses below which an
192	insurer is not entitled to reimbursement from the fund. An
193	insurer's retention shall be calculated as follows:
194	1.  The board shall calculate and report to each insurer
195	the retention multiples for that year. For the contract year
196	beginning June 1, 2005, the retention multiple shall be equal to
197	$4.5 billion divided by the total estimated reimbursement
198	premium for the contract year; for subsequent years, the
199	retention multiple shall be equal to $4.5 billion, adjusted
200	based upon the reported exposure from the prior contract year to
201	reflect the percentage growth in exposure to the fund for
202	covered policies since 2004, divided by the total estimated
203	reimbursement premium for the contract year. Total reimbursement
204	premium for purposes of the calculation under this subparagraph
205	shall be estimated using the assumption that all insurers have
206	selected the 90-percent coverage level. In 2010, the contract
207	year begins June 1 and ends December 31. In 2011 and thereafter,
208	the contract year begins January 1 and ends December 31.
209	2.  The retention multiple as determined under subparagraph
210	1. shall be adjusted to reflect the coverage level elected by
211	the insurer. For insurers electing the 90-percent coverage
212	level, the adjusted retention multiple is 100 percent of the
213	amount determined under subparagraph 1. For insurers electing
214	the 75-percent coverage level, the retention multiple is 120
215	percent of the amount determined under subparagraph 1. For
216	insurers electing the 45-percent coverage level, the adjusted
217	retention multiple is 200 percent of the amount determined under
218	subparagraph 1.
219	3.  An insurer shall determine its provisional retention by
220	multiplying its provisional reimbursement premium by the
221	applicable adjusted retention multiple and shall determine its
222	actual retention by multiplying its actual reimbursement premium
223	by the applicable adjusted retention multiple.
224	4.  For insurers who experience multiple covered events
225	causing loss during the contract year, beginning June 1, 2005,
226	each insurer's full retention shall be applied to each of the
227	covered events causing the two largest losses for that insurer.
228	For each other covered event resulting in losses, the insurer's
229	retention shall be reduced to one-third of the full retention.
230	The reimbursement contract shall provide for the reimbursement
231	of losses for each covered event based on the full retention
232	with adjustments made to reflect the reduced retentions after
233	January 1 of the contract year provided the insurer reports its
234	losses as specified in the reimbursement contract.
235	(4)  REIMBURSEMENT CONTRACTS.--
236	(b)1.  The contract shall contain a promise by the board to
237	reimburse the insurer for 45 percent, 75 percent, or 90 percent
238	of its losses from each covered event in excess of the insurer's
239	retention, plus 5 percent of the reimbursed losses to cover loss
240	adjustment expenses.
241	2.  The insurer must elect one of the percentage coverage
242	levels specified in this paragraph and may, upon renewal of a
243	reimbursement contract, elect a lower percentage coverage level
244	if no revenue bonds issued under subsection (6) after a covered
245	event are outstanding, or elect a higher percentage coverage
246	level, regardless of whether or not revenue bonds are
247	outstanding. All members of an insurer group must elect the same
248	percentage coverage level. Any joint underwriting association,
249	risk apportionment plan, or other entity created under s.
250	627.351 must elect the 90-percent coverage level.
251	3.  The contract shall provide that reimbursement amounts
252	shall not be reduced by reinsurance paid or payable to the
253	insurer from other sources.
254	4.  Notwithstanding any other provision contained in this
255	section, the board shall make available to insurers that
256	purchased coverage provided by this subparagraph in 2008 2007,
257	insurers qualifying as limited apportionment companies under s.
258	627.351(6)(c), and insurers that have been approved to
259	participate in the Insurance Capital Build-Up Incentive Program
260	pursuant to s. 215.5595 a contract or contract addendum that
261	provides an additional amount of reimbursement coverage of up to
262	$10 million. The premium to be charged for this additional
263	reimbursement coverage shall be 50 percent of the additional
264	reimbursement coverage provided, which shall include one prepaid
265	reinstatement. The minimum retention level that an eligible
266	participating insurer must retain associated with this
267	additional coverage layer is 30 percent of the insurer's surplus
268	as of December 31, 2008, for the 2009-2010 contract year; as of
269	December 31, 2009, for the contract year beginning June 1, 2010,
270	and ending December 31, 2010; and as of December 31, 2010, for
271	the 2011 contract year 2007. This coverage shall be in addition
272	to all other coverage that may be provided under this section.
273	The coverage provided by the fund under this subparagraph shall
274	be in addition to the claims-paying capacity as defined in
275	subparagraph (c)1., but only with respect to those insurers that
276	select the additional coverage option and meet the requirements
277	of this subparagraph. The claims-paying capacity with respect to
278	all other participating insurers and limited apportionment
279	companies that do not select the additional coverage option
280	shall be limited to their reimbursement premium's proportionate
281	share of the actual claims-paying capacity otherwise defined in
282	subparagraph (c)1. and as provided for under the terms of the
283	reimbursement contract. The optional coverage retention as
284	specified shall be accessed before the mandatory coverage under
285	the reimbursement contract, but once the limit of coverage
286	selected under this option is exhausted, the insurer's retention
287	under the mandatory coverage shall apply. This coverage shall
288	apply and be paid concurrently with the mandatory coverage.
289	Coverage provided in the reimbursement contract shall not be
290	affected by the additional premiums paid by participating
291	insurers exercising the additional coverage option allowed in
292	this subparagraph. This subparagraph expires on December May 31,
293	2011 2009.
294	(c)1.  The contract shall also provide that the obligation
295	of the board with respect to all contracts covering a particular
296	contract year shall not exceed the actual claims-paying capacity
297	of the fund up to a limit of $15 billion for that contract year
298	adjusted based upon the reported exposure from the prior
299	contract year to reflect the percentage growth in exposure to
300	the fund for covered policies since 2003, provided the dollar
301	growth in the limit may not increase in any year by an amount
302	greater than the dollar growth of the balance of the fund as of
303	December 31, less any premiums or interest attributable to
304	optional coverage, as defined by rule which occurred over the
305	prior calendar year.
306	2.  In May before the start of the upcoming contract year
307	and in October of during the contract year, the board shall
308	publish in the Florida Administrative Weekly a statement of the
309	fund's estimated borrowing capacity, the fund's estimated
310	claims-paying capacity, and the projected balance of the fund as
311	of December 31. After the end of each calendar year, the board
312	shall notify insurers of the estimated borrowing capacity, the
313	estimated claims-paying capacity, and the balance of the fund as
314	of December 31 to provide insurers with data necessary to assist
315	them in determining their retention and projected payout from
316	the fund for loss reimbursement purposes. In conjunction with
317	the development of the premium formula, as provided for in
318	subsection (5), the board shall publish factors or multiples
319	that assist insurers in determining their retention and
320	projected payout for the next contract year. For all regulatory
321	and reinsurance purposes, an insurer may calculate its projected
322	payout from the fund as its share of the total fund premium for
323	the current contract year multiplied by the sum of the projected
324	balance of the fund as of December 31 and the estimated
325	borrowing capacity for that contract year as reported under this
326	subparagraph.
327	(5)  REIMBURSEMENT PREMIUMS.--
328	(b)  The State Board of Administration shall select an
329	independent consultant to develop a formula for determining the
330	actuarially indicated premium to be paid to the fund. The
331	formula shall specify, for each zip code or other limited
332	geographical area, the amount of premium to be paid by an
333	insurer for each $1,000 of insured value under covered policies
334	in that zip code or other area. In establishing premiums, the
335	board shall consider the coverage elected under paragraph (4)(b)
336	and any factors that tend to enhance the actuarial
337	sophistication of ratemaking for the fund, including
338	deductibles, type of construction, type of coverage provided,
339	relative concentration of risks, and other such factors deemed
340	by the board to be appropriate. The formula must provide for a
341	cash build-up factor. For the contract year 2009-2010, the
342	factor is 5 percent; for the contract year beginning June 1,
343	2010, and ending December 31, 2010, the factor is 10 percent;
344	for the 2011 contract year, the factor is 15 percent; for the
345	2012 contract year, the factor is 20 percent; and for the 2013
346	contract year and thereafter, the factor is 25 percent. The
347	formula may provide for a procedure to determine the premiums to
348	be paid by new insurers that begin writing covered policies
349	after the beginning of a contract year, taking into
350	consideration when the insurer starts writing covered policies,
351	the potential exposure of the insurer, the potential exposure of
352	the fund, the administrative costs to the insurer and to the
353	fund, and any other factors deemed appropriate by the board. The
354	formula must be approved by unanimous vote of the board. The
355	board may, at any time, revise the formula pursuant to the
356	procedure provided in this paragraph.
357	(7)  ADDITIONAL POWERS AND DUTIES.--
358	(f)  The board may require insurers to notarize documents
359	submitted to the board.
360	(17)  TEMPORARY INCREASE IN COVERAGE LIMIT OPTIONS.--
361	(a)  Findings and intent.--
362	1.  The Legislature finds that:
363	a.  Because of temporary disruptions in the market for
364	catastrophic reinsurance, many property insurers were unable to
365	procure sufficient amounts of reinsurance for the 2006 hurricane
366	season or were able to procure such reinsurance only by
367	incurring substantially higher costs than in prior years.
368	b.  The reinsurance market problems were responsible, at
369	least in part, for substantial premium increases to many
370	consumers and increases in the number of policies issued by
371	Citizens Property Insurance Corporation.
372	c.  It is likely that the reinsurance market disruptions
373	will not significantly abate prior to the 2007 hurricane season.
374	2.  It is the intent of the Legislature to create options
375	for insurers to purchase a temporary increased coverage limit
376	above the statutorily determined limit in subparagraph (4)(c)1.,
377	applicable for the 2007, 2008, and 2009, 2010, 2011, 2012, and
378	2013 hurricane seasons, to address market disruptions and enable
379	insurers, at their option, to procure additional coverage from
380	the Florida Hurricane Catastrophe Fund.
381	(b)  Applicability of other provisions of this
382	section.--All provisions of this section and the rules adopted
383	under this section apply to the coverage created by this
384	subsection unless specifically superseded by provisions in this
385	subsection.
386	(c)  Optional coverage.--For the contract year commencing
387	June 1, 2007, and ending May 31, 2008, the contract year
388	commencing June 1, 2008, and ending May 31, 2009, and the
389	contract year commencing June 1, 2009, and ending May 31, 2010,
390	the contract year commencing June 1, 2010, and ending December
391	31, 2010, the contract year commencing January 1, 2011, and
392	ending December 31, 2011, the contract year commencing January
393	1, 2012, and ending December 31, 2012, and the contract year
394	commencing January 1, 2013, and ending December 31, 2013, the
395	board shall offer, for each of such years, the optional coverage
396	as provided in this subsection.
397	(d)  Additional definitions.--As used in this subsection,
398	the term:
399	1.  "FHCF" means Florida Hurricane Catastrophe Fund.
400	2.  "FHCF reimbursement premium" means the premium paid by
401	an insurer for its coverage as a mandatory participant in the
402	FHCF, but does not include additional premiums for optional
403	coverages.
404	3.  "Payout multiple" means the number or multiple created
405	by dividing the statutorily defined claims-paying capacity as
406	determined in subparagraph (4)(c)1. by the aggregate
407	reimbursement premiums paid by all insurers estimated or
408	projected as of calendar year-end.
409	4.  "TICL" means the temporary increase in coverage limit.
410	5.  "TICL options" means the temporary increase in coverage
411	options created under this subsection.
412	6.  "TICL insurer" means an insurer that has opted to
413	obtain coverage under the TICL options addendum in addition to
414	the coverage provided to the insurer under its FHCF
415	reimbursement contract, but does not include Citizens Property
416	Insurance Corporation.
417	7.  "TICL reimbursement premium" means the premium charged
418	by the fund for coverage provided under the TICL option.
419	8.  "TICL coverage multiple" means the coverage multiple
420	when multiplied by an insurer's reimbursement premium that
421	defines the temporary increase in coverage limit.
422	9.  "TICL coverage" means the coverage for an insurer's
423	losses above the insurer's statutorily determined claims-paying
424	capacity based on the claims-paying limit in subparagraph
425	(4)(c)1., which an insurer selects as its temporary increase in
426	coverage from the fund under the TICL options selected. A TICL
427	insurer's increased coverage limit options shall be calculated
428	as follows:
429	a.  The board shall calculate and report to each TICL
430	insurer the TICL coverage multiples based on 12 options for
431	increasing the insurer's FHCF coverage limit. Each TICL coverage
432	multiple shall be calculated by dividing $1 billion, $2 billion,
433	$3 billion, $4 billion, $5 billion, $6 billion, $7 billion, $8
434	billion, $9 billion, $10 billion, $11 billion, or $12 billion by
435	the total estimated aggregate FHCF reimbursement premiums for
436	the 2007-2008 contract year and, the 2008-2009 contract year,
437	and the 2009-2010 contract year.
438	b.  For the 2009-2010 contract year, the board shall
439	calculate and report to each TICL insurer the TICL coverage
440	multiples based on 10 options for increasing the insurer's FHCF
441	coverage limit. Each TICL coverage multiple shall be calculated
442	by dividing $1 billion, $2 billion, $3 billion, $4 billion, $5
443	billion, $6 billion, $7 billion, $8 billion, $9 billion, and $10
444	billion by the total estimated aggregate FHCF reimbursement
445	premiums for the 2009-2010 contract year.
446	c.  For the contract year beginning June 1, 2010, and
447	ending December 31, 2010, the board shall calculate and report
448	to each TICL insurer the TICL coverage multiples based on eight
449	options for increasing the insurer's FHCF coverage limit. Each
450	TICL coverage multiple shall be calculated by dividing $1
451	billion, $2 billion, $3 billion, $4 billion, $5 billion, $6
452	billion, $7 billion, and $8 billion by the total estimated
453	aggregate FHCF reimbursement premiums for the contract year.
454	d.  For the 2011 contract year, the board shall calculate
455	and report to each TICL insurer the TICL coverage multiples
456	based on six options for increasing the insurer's FHCF coverage
457	limit. Each TICL coverage multiple shall be calculated by
458	dividing $1 billion, $2 billion, $3 billion, $4 billion, $5
459	billion, and $6 billion by the total estimated aggregate FHCF
460	reimbursement premiums for the 2011 contract year.
461	e.  For the 2012 contract year, the board shall calculate
462	and report to each TICL insurer the TICL coverage multiples
463	based on four options for increasing the insurer's FHCF coverage
464	limit. Each TICL coverage multiple shall be calculated by
465	dividing $1 billion, $2 billion, $3 billion, and $4 billion by
466	the total estimated aggregate FHCF reimbursement premiums for
467	the 2012 contract year.
468	f.  For the 2013 contract year, the board shall calculate
469	and report to each TICL insurer the TICL coverage multiples
470	based on two options for increasing the insurer's FHCF coverage
471	limit. Each TICL coverage multiple shall be calculated by
472	dividing $1 billion and $2 billion by the total estimated
473	aggregate FHCF reimbursement premiums for the 2013 contract
474	year.
475	g.b.  The TICL insurer's increased coverage shall be the
476	FHCF reimbursement premium multiplied by the TICL coverage
477	multiple. In order to determine an insurer's total limit of
478	coverage, an insurer shall add its TICL coverage multiple to its
479	payout multiple. The total shall represent a number that, when
480	multiplied by an insurer's FHCF reimbursement premium for a
481	given reimbursement contract year, defines an insurer's total
482	limit of FHCF reimbursement coverage for that reimbursement
483	contract year.
484	10.  "TICL options addendum" means an addendum to the
485	reimbursement contract reflecting the obligations of the fund
486	and insurers selecting an option to increase an insurer's FHCF
487	coverage limit.
488	(e)  TICL options addendum.--
489	1.  The TICL options addendum shall provide for
490	reimbursement of TICL insurers for covered events occurring
491	between June 1, 2007, and May 31, 2008, and between June 1,
492	2008, and May 31, 2009, or between June 1, 2009, and May 31,
493	2010, between June 1, 2010, and December 31, 2010, between
494	January 1, 2011, and December 31, 2011, between January 1, 2012,
495	and December 31, 2012, or between January 1, 2013, and December
496	31, 2013, in exchange for the TICL reimbursement premium paid
497	into the fund under paragraph (f). Any insurer writing covered
498	policies has the option of selecting an increased limit of
499	coverage under the TICL options addendum and shall select such
500	coverage at the time that it executes the FHCF reimbursement
501	contract.
502	2.a.  The TICL addendum for the contract year commencing
503	June 1, 2007, and ending May 31, 2008, or the contract year
504	commencing June 1, 2008, and ending May 31, 2009, shall contain
505	a promise by the board to reimburse the TICL insurer for 45
506	percent, 75 percent, or 90 percent of its losses from each
507	covered event in excess of the insurer's retention, plus 5
508	percent of the reimbursed losses to cover loss adjustment
509	expenses. The percentage shall be the same as the coverage level
510	selected by the insurer under paragraph (4)(b).
511	b.  The TICL addendum for the contract year commencing June
512	1, 2009, and ending May 31, 2010, shall contain a promise by the
513	board to reimburse the TICL insurer for 45 percent or 75 percent
514	of its losses from each covered event in excess of the insurer's
515	retention, plus 5 percent of the reimbursed losses to cover loss
516	adjustment expenses.
517	c.  The TICL addendum for the contract year commencing June
518	1, 2010, and ending December 31, 2010, shall contain a promise
519	by the board to reimburse the TICL insurer for 45 percent or 65
520	percent of its losses from each covered event in excess of the
521	insurer's retention, plus 5 percent of the reimbursed losses to
522	cover loss adjustment expenses.
523	d.  The TICL addendum for the contract year commencing
524	January 1, 2011, and ending December 31, 2011, shall contain a
525	promise by the board to reimburse the TICL insurer for 45
526	percent or 55 percent of its losses from each covered event in
527	excess of the insurer's retention, plus 5 percent of the
528	reimbursed losses to cover loss adjustment expenses.
529	e.  The TICL addendum for the contract year commencing
530	January 1, 2012, and ending December 31, 2012, shall contain a
531	promise by the board to reimburse the TICL insurer for 45
532	percent of its losses from each covered event in excess of the
533	insurer's retention, plus 5 percent of the reimbursed losses to
534	cover loss adjustment expenses.
535	f.  The TICL addendum for the contract year commencing
536	January 1, 2013, and ending December 31, 2013, shall contain a
537	promise by the board to reimburse the TICL insurer for 30
538	percent of its losses from each covered event in excess of the
539	insurer's retention, plus 5 percent of the reimbursed losses to
540	cover loss adjustment expenses.
541	3.  The TICL addendum shall provide that reimbursement
542	amounts shall not be reduced by reinsurance paid or payable to
543	the insurer from other sources.
544	4.  The priorities, schedule, and method of reimbursements
545	under the TICL addendum shall be the same as provided under
546	subsection (4).
547	(f)  TICL reimbursement premiums.--Each TICL insurer shall
548	pay to the fund, in the manner and at the time provided in the
549	reimbursement contract for payment of reimbursement premiums, a
550	TICL reimbursement premium determined as specified in subsection
551	(5), except that a cash build-up factor does not apply to the
552	TICL reimbursement premiums. However, the TICL reimbursement
553	premium shall be increased in contract year 2009-2010 by a
554	factor of two, in the contract year beginning June 1, 2010, and
555	ending December 31, 2010, by a factor of three, in the 2011
556	contract year by a factor of four, in the 2012 contract year by
557	a factor of five, and in the 2013 contract year by a factor of
558	six.
559	(g)  Effect on claims-paying capacity of the fund.--For the
560	contract terms commencing June 1, 2007, June 1, 2008, and June
561	1, 2009, June 1, 2010, January 1, 2011, January 1, 2012, and
562	January 1, 2013, the program created by this subsection shall
563	increase the claims-paying capacity of the fund as provided in
564	subparagraph (4)(c)1. by an amount not to exceed $12 billion and
565	shall depend on the TICL coverage options selected and the
566	number of insurers that select the TICL optional coverage. The
567	additional capacity shall apply only to the additional coverage
568	provided under the TICL options and shall not otherwise affect
569	any insurer's reimbursement from the fund if the insurer chooses
570	not to select the temporary option to increase its limit of
571	coverage under the FHCF.
572	(h)  Increasing the claims-paying capacity of the
573	fund.--For the contract years commencing June 1, 2007, June 1,
574	2008, and June 1, 2009, the board may increase the claims-paying
575	capacity of the fund as provided in paragraph (g) by an amount
576	not to exceed $4 billion in four $1 billion options and shall
577	depend on the TICL coverage options selected and the number of
578	insurers that select the TICL optional coverage. Each insurer's
579	TICL premium shall be calculated based upon the additional limit
580	of increased coverage that the insurer selects. Such limit is
581	determined by multiplying the TICL multiple associated with one
582	of the four options times the insurer's FHCF reimbursement
583	premium. The reimbursement premium associated with the
584	additional coverage provided in this paragraph shall be
585	determined as specified in subsection (5).
586	Section 3.  Section 215.5586, Florida Statutes, as amended
587	by section 1 of chapter 2009-10, Laws of Florida, is amended to
588	read:
589	215.5586  My Safe Florida Home Program.--There is
590	established within the Department of Financial Services the My
591	Safe Florida Home Program. The department shall provide fiscal
592	accountability, contract management, and strategic leadership
593	for the program, consistent with this section. This section does
594	not create an entitlement for property owners or obligate the
595	state in any way to fund the inspection or retrofitting of
596	residential property in this state. Implementation of this
597	program is subject to annual legislative appropriations. It is
598	the intent of the Legislature that the My Safe Florida Home
599	Program provide trained and certified inspectors to perform
600	inspections for owners of for at least 400,000 site-built,
601	single-family, residential properties and provide grants to
602	eligible at least 35,000 applicants as funding allows before
603	June 30, 2009. The program shall develop and implement a
604	comprehensive and coordinated approach for hurricane damage
605	mitigation that may shall include the following:
606	(1)  HURRICANE MITIGATION INSPECTIONS.--
607	(a)  Certified inspectors to provide free home-retrofit
608	inspections of site-built, single-family, residential property
609	may shall be offered throughout the state to determine what
610	mitigation measures are needed, what insurance premium discounts
611	may be available, and what improvements to existing residential
612	properties are needed to reduce the property's vulnerability to
613	hurricane damage. The Department of Financial Services shall
614	contract with wind certification entities to provide free
615	hurricane mitigation inspections. The inspections provided to
616	homeowners, at a minimum, must include:
617	1.  A home inspection and report that summarizes the
618	results and identifies recommended improvements a homeowner may
619	take to mitigate hurricane damage.
620	2.  A range of cost estimates regarding the recommended
621	mitigation improvements.
622	3.  Insurer-specific information regarding premium
623	discounts correlated to the current mitigation features and the
624	recommended mitigation improvements identified by the
625	inspection.
626	4.  A hurricane resistance rating scale specifying the
627	home's current as well as projected wind resistance
628	capabilities. As soon as practical, the rating scale must be the
629	uniform home grading scale adopted by the Financial Services
630	Commission pursuant to s. 215.55865.
631	(b)  To qualify for selection by the department as a wind
632	certification entity to provide hurricane mitigation
633	inspections, the entity shall, at a minimum, meet the following
634	requirements:
635	1.  Use hurricane mitigation inspectors who:
636	a.  Are certified as a building inspector under s. 468.607;
637	b.  Are licensed as a general or residential contractor
638	under s. 489.111;
639	c.  Are licensed as a professional engineer under s.
640	471.015 and who have passed the appropriate equivalency test of
641	the Building Code Training Program as required by s. 553.841;
642	d.  Are licensed as a professional architect under s.
643	481.213; or
644	e.  Have at least 2 years of experience in residential
645	construction or residential building inspection and have
646	received specialized training in hurricane mitigation
647	procedures. Such training may be provided by a class offered
648	online or in person.
649	2.  Use hurricane mitigation inspectors who also:
650	a.  Have undergone drug testing and level 2 background
651	checks pursuant to s. 435.04. The department may conduct
652	criminal record checks of inspectors used by wind certification
653	entities. Inspectors must submit a set of the fingerprints to
654	the department for state and national criminal history checks
655	and must pay the fingerprint processing fee set forth in s.
656	624.501. The fingerprints shall be sent by the department to the
657	Department of Law Enforcement and forwarded to the Federal
658	Bureau of Investigation for processing. The results shall be
659	returned to the department for screening. The fingerprints shall
660	be taken by a law enforcement agency, designated examination
661	center, or other department-approved entity; and
662	b.  Have been certified, in a manner satisfactory to the
663	department, to conduct the inspections.
664	3.  Provide a quality assurance program including a
665	reinspection component.
666	(c)  The department shall implement a quality assurance
667	program that includes a statistically valid number of
668	reinspections.
669	(d)  An application for an inspection must contain a signed
670	or electronically verified statement made under penalty of
671	perjury that the applicant has submitted only a single
672	application for that home.
673	(e)  The owner of a site-built, single-family, residential
674	property may apply for and receive an inspection without also
675	applying for a grant pursuant to subsection (2) and without
676	meeting the requirements of paragraph (2)(a).
677	(2)  MITIGATION GRANTS.--Financial grants shall be used to
678	encourage single-family, site-built, owner-occupied, residential
679	property owners to retrofit their properties to make them less
680	vulnerable to hurricane damage.
681	(a)  For a homeowner to be eligible for a grant, the
682	following criteria for persons who have obtained a completed
683	inspection after May 1, 2007, a residential property must be
684	met:
685	1.  The homeowner must have been granted a homestead
686	exemption on the home under chapter 196.
687	2.  The home must be a dwelling with an insured value of
688	$300,000 or less. Homeowners who are low-income persons, as
689	defined in s. 420.0004(10), are exempt from this requirement.
690	3.  The home must have undergone an acceptable hurricane
691	mitigation inspection after May 1, 2007.
692	4.  The home must be located in the "wind-borne debris
693	region" as that term is defined in s. 1609.2, International
694	Building Code (2006), or as subsequently amended.
695	5.  Be a home for which The building permit application for
696	initial construction of the home must have been was made before
697	March 1, 2002.
698
699	An application for a grant must contain a signed or
700	electronically verified statement made under penalty of perjury
701	that the applicant has submitted only a single application and
702	must have attached documents demonstrating the applicant meets
703	the requirements of this paragraph.
704	(b)  All grants must be matched on a dollar-for-dollar
705	basis up to for a total of $10,000 for the actual cost of the
706	mitigation project with the state's contribution not to exceed
707	$5,000.
708	(c)  The program shall create a process in which
709	contractors agree to participate and homeowners select from a
710	list of participating contractors. All mitigation must be based
711	upon the securing of all required local permits and inspections
712	and must be performed by properly licensed contractors.
713	Mitigation projects are subject to random reinspection of up to
714	at least 5 percent of all projects. Hurricane mitigation
715	inspectors qualifying for the program may also participate as
716	mitigation contractors as long as the inspectors meet the
717	department's qualifications and certification requirements for
718	mitigation contractors.
719	(d)  Matching fund grants shall also be made available to
720	local governments and nonprofit entities for projects that will
721	reduce hurricane damage to single-family, site-built, owner-
722	occupied, residential property. The department shall liberally
723	construe those requirements in favor of availing the state of
724	the opportunity to leverage funding for the My Safe Florida Home
725	Program with other sources of funding.
726	(e)  When recommended by a hurricane mitigation inspection,
727	grants may be used for the following improvements only:
728	1.  Opening protection.
729	2.  Exterior doors, including garage doors.
730	3.  Brace gable ends.
731	4.  Reinforcing roof-to-wall connections.
732	5.  Improving the strength of roof-deck attachments.
733	6.  Upgrading roof covering from code to code plus.
734	7.  Secondary water barrier for roof.
735
736	The department may require that improvements be made to all
737	openings, including exterior doors and garage doors, as a
738	condition of reimbursing a homeowner approved for a grant.
739	(f)  Grants may be used on a previously inspected existing
740	structure or on a rebuild. A rebuild is defined as a site-built,
741	single-family dwelling under construction to replace a home that
742	was destroyed or significantly damaged by a hurricane and deemed
743	unlivable by a regulatory authority. The homeowner must be a
744	low-income homeowner as defined in paragraph (g), must have had
745	a homestead exemption for that home prior to the hurricane, and
746	must be intending to rebuild the home as that homeowner's
747	homestead.
748	(g)  Low-income homeowners, as defined in s. 420.0004(10),
749	who otherwise meet the requirements of paragraphs (a), (c), (e),
750	and (f) are eligible for a grant of up to $5,000 and are not
751	required to provide a matching amount to receive the grant.
752	Additionally, for low-income homeowners, grant funding may be
753	used for repair to existing structures leading to any of the
754	mitigation improvements provided in paragraph (e), limited to 20
755	percent of the grant value. The program may accept a
756	certification directly from a low-income homeowner that the
757	homeowner meets the requirements of s. 420.0004(10) if the
758	homeowner provides such certification in a signed or
759	electronically verified statement made under penalty of perjury.
760	(h)  The department shall establish objective, reasonable
761	criteria for prioritizing grant applications, consistent with
762	the requirements of this section.
763	(i)  The department shall develop a process that ensures
764	the most efficient means to collect and verify grant
765	applications to determine eligibility and may direct hurricane
766	mitigation inspectors to collect and verify grant application
767	information or use the Internet or other electronic means to
768	collect information and determine eligibility.
769	(3)  EDUCATION AND CONSUMER AWARENESS.--The department may
770	undertake a statewide multimedia public outreach and advertising
771	campaign to inform consumers of the availability and benefits of
772	hurricane inspections and of the safety and financial benefits
773	of residential hurricane damage mitigation. The department may
774	seek out and use local, state, federal, and private funds to
775	support the campaign.
776	(4)  ADVISORY COUNCIL.--There is created an advisory
777	council to provide advice and assistance to the department
778	regarding administration of the program. The advisory council
779	shall consist of:
780	(a)  A representative of lending institutions, selected by
781	the Financial Services Commission from a list of at least three
782	persons recommended by the Florida Bankers Association.
783	(b)  A representative of residential property insurers,
784	selected by the Financial Services Commission from a list of at
785	least three persons recommended by the Florida Insurance
786	Council.
787	(c)  A representative of home builders, selected by the
788	Financial Services Commission from a list of at least three
789	persons recommended by the Florida Home Builders Association.
790	(d)  A faculty member of a state university, selected by
791	the Financial Services Commission, who is an expert in
792	hurricane-resistant construction methodologies and materials.
793	(e)  Two members of the House of Representatives, selected
794	by the Speaker of the House of Representatives.
795	(f)  Two members of the Senate, selected by the President
796	of the Senate.
797	(g)  The Chief Executive Officer of the Federal Alliance
798	for Safe Homes, Inc., or his or her designee.
799	(h)  The senior officer of the Florida Hurricane
800	Catastrophe Fund.
801	(i)  The executive director of Citizens Property Insurance
802	Corporation.
803	(j)  The director of the Division of Emergency Management
804	of the Department of Community Affairs.
805
806	Members appointed under paragraphs (a)-(d) shall serve at the
807	pleasure of the Financial Services Commission. Members appointed
808	under paragraphs (e) and (f) shall serve at the pleasure of the
809	appointing officer. All other members shall serve as voting ex
810	officio members. Members of the advisory council shall serve
811	without compensation but may receive reimbursement as provided
812	in s. 112.061 for per diem and travel expenses incurred in the
813	performance of their official duties.
814	(5)  FUNDING.--The department may seek out and leverage
815	local, state, federal, or private funds to enhance the financial
816	resources of the program.
817	(6)  RULES.--The Department of Financial Services shall
818	adopt rules pursuant to ss. 120.536(1) and 120.54 to govern the
819	program; implement the provisions of this section; including
820	rules governing hurricane mitigation inspections and grants,
821	mitigation contractors, and training of inspectors and
822	contractors; and carry out the duties of the department under
823	this section.
824	(7)  HURRICANE MITIGATION INSPECTOR LIST.--The department
825	shall develop and maintain as a public record a current list of
826	hurricane mitigation inspectors authorized to conduct hurricane
827	mitigation inspections pursuant to this section.
828	(8)  NO-INTEREST LOANS.--The department shall implement a
829	no-interest loan program by October 1, 2008, contingent upon the
830	selection of a qualified vendor and execution of a contract
831	acceptable to the department and the vendor. The department
832	shall enter into partnerships with the private sector to provide
833	loans to owners of site-built, single-family, residential
834	property to pay for mitigation measures listed in subsection
835	(2). A loan eligible for interest payments pursuant to this
836	subsection may be for a term of up to 3 years and cover up to
837	$5,000 in mitigation measures. The department shall pay the
838	creditor the market rate of interest using funds appropriated
839	for the My Safe Florida Home Program. In no case shall the
840	department pay more than the interest rate set by s. 687.03. To
841	be eligible for a loan, a loan applicant must first obtain a
842	home inspection and report that specifies what improvements are
843	needed to reduce the property's vulnerability to windstorm
844	damage pursuant to this section and meet loan underwriting
845	requirements set by the lender. The department may adopt rules
846	pursuant to ss. 120.536(1) and 120.54 to implement this
847	subsection which may include eligibility criteria.
848	(8)(9)  PUBLIC OUTREACH FOR CONTRACTORS AND REAL ESTATE
849	BROKERS AND SALES ASSOCIATES.--The program shall develop
850	brochures for distribution to general contractors, roofing
851	contractors, and real estate brokers and sales associates
852	licensed under part I of chapter 475 explaining the benefits to
853	homeowners of residential hurricane damage mitigation. The
854	program shall encourage contractors to distribute the brochures
855	to homeowners at the first meeting with a homeowner who is
856	considering contracting for home or roof repairs or contracting
857	for the construction of a new home. The program shall encourage
858	real estate brokers and sales associates licensed under part I
859	of chapter 475 to distribute the brochures to clients prior to
860	the purchase of a home. The brochures may be made available
861	electronically.
862	(9)(10)  CONTRACT MANAGEMENT.--The department may contract
863	with third parties for grants management, inspection services,
864	contractor services for low-income homeowners, information
865	technology, educational outreach, and auditing services. Such
866	contracts shall be considered direct costs of the program and
867	shall not be subject to administrative cost limits, but
868	contracts valued at $1 million $500,000 or more shall be subject
869	to review and approval by the Legislative Budget Commission. The
870	department shall contract with providers that have a
871	demonstrated record of successful business operations in areas
872	directly related to the services to be provided and shall ensure
873	the highest accountability for use of state funds, consistent
874	with this section.
875	(10)(11)  INTENT.--It is the intent of the Legislature that
876	grants made to residential property owners under this section
877	shall be considered disaster-relief assistance within the
878	meaning of s. 139 of the Internal Revenue Code of 1986, as
879	amended.
880	(11)(12)  REPORTS.--The department shall make an annual
881	report on the activities of the program that shall account for
882	the use of state funds and indicate the number of inspections
883	requested, the number of inspections performed, the number of
884	grant applications received, and the number and value of grants
885	approved. The report shall be delivered to the President of the
886	Senate and the Speaker of the House of Representatives by
887	February 1 of each year.
888	(12)  CONDOMINIUM WEATHERIZATION AND MITIGATION LOAN
889	PROGRAM.--
890	(a)  Subject to a specific appropriation by the Legislature
891	from funds received pursuant to the American Recovery and
892	Reinvestment Act of 2009, Pub. L. No. 111-5, specifically for
893	the purpose of condominium weatherization, the department shall
894	implement a condominium weatherization and mitigation loan
895	program to assist condominium unit owners in weatherizing their
896	condominium units and mitigating all such units against wind
897	damage. The program shall have the following minimum
898	requirements:
899	1.  The department shall contract with lenders to offer
900	weatherization and hurricane mitigation loan subsidies equal to
901	a competitive rate of interest on a loan balance of up to $5,000
902	per condominium unit for 3 years. The interest subsidy may be
903	paid in advance by the department to a lender participating in
904	the program.
905	2.  The loans must be used to purchase or install
906	weatherization measures and hurricane mitigation measures
907	identified in paragraph (2)(e) that comply with the requirements
908	of part A, Title IV of the Energy Conservation and Production
909	Act, 42 U.S.C. ss. 6861 et seq., as amended by the American
910	Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5, as
911	determined by the department.
912	3.  A participating condominium association must agree to
913	purchase and install weatherization and mitigation measures for
914	each unit in the condominium that lacks the weatherization and
915	mitigation measures.
916	4.  To be eligible, a condominium must have been permitted
917	for construction on or before March 1, 2002, be located in the
918	wind-borne debris region.
919	5.  Condominiums of more than 200 units are not eligible
920	for the loan program.
921	6.  The department may contract with third parties for
922	auditing and related services to ensure accountability and
923	program quality.
924	(b)  The loan program shall be administered on a first-
925	come, first-served basis.
926	(c)  The department shall adopt rules pursuant to ss.
927	120.536(1) and 120.54 to implement the loan program.
928	Section 4.  Subsections (5) and (6) are added to section
929	624.4622, Florida Statutes, to read:
930	624.4622  Local government self-insurance funds.--
931	(5)  A local government self-insurance fund may not require
932	its members to provide more than 30 days' notice of the member's
933	intention to withdraw from the self-insurance fund as a
934	prerequisite for withdrawing from the self-insurance fund.
935	(6)(a)  Each local government self-insurance fund shall
936	submit annually to the office, to the governing body of each
937	member participant, and to the governing board of each new
938	member before the inception of the policy an affidavit stating
939	whether an officer or owner of or the manager or administrator
940	of a local government self-insurance fund has ever:
941	1.  Been charged with, or indicted for, any criminal
942	offense other than a motor vehicle offense;
943	2.  Pled guilty or nolo contendere to, or been convicted
944	of, any criminal offense other than a motor vehicle offense;
945	3.  Had adjudication of guilt withheld, had a sentence
946	imposed or suspended, had a pronouncement of a sentence
947	suspended, or been pardoned, fined, or placed on probation for
948	any criminal offense other than a motor vehicle offense; or
949	4  Been, within the last 10 years, found liable in any
950	civil action involving dishonesty or a breach of trust.
951	(b)  If the record has been sealed or expunged and the
952	respondent has personally verified that the record was sealed or
953	expunged, a respondent may respond "no" to the question.
954	Section 5.  Paragraph (r) of subsection (1) of section
955	624.605, Florida Statutes, is amended to read:
956	624.605  "Casualty insurance" defined.--
957	(1)  "Casualty insurance" includes:
958	(r)  Insurance for debt cancellation products.--Insurance
959	that a creditor may purchase against the risk of financial loss
960	from the use of debt cancellation products with consumer loans
961	or leases or retail installment contracts. Insurance for debt
962	cancellation products is not liability insurance but shall be
963	considered credit insurance only for the purposes of s.
964	631.52(4).
965	1.  For purposes of this paragraph, the term "debt
966	cancellation products" means loan, lease, or retail installment
967	contract terms, or modifications to loan, lease, or retail
968	installment contracts, under which a creditor agrees to cancel
969	or suspend all or part of a customer's obligation to make
970	payments upon the occurrence of specified events and includes,
971	but is not limited to, debt cancellation contracts, debt
972	suspension agreements, and guaranteed asset protection
973	contracts. However, the term "debt cancellation products" does
974	not include title insurance as defined in s. 624.608.
975	2.  Debt cancellation products may be offered by financial
976	institutions, as defined in s. 655.005(1)(h), insured depository
977	institutions, as defined in 12 U.S.C. s. 1813(c), and
978	subsidiaries of such institutions, as provided in the financial
979	institutions codes, or by other business entities selling or
980	leasing a product that may be goods, services, or real property
981	and interests in real property, the sale or lease of which
982	product is regulated by an agency of the state and when the
983	extension of credit is offered in connection with the purchase
984	or lease of such product. as may be specifically authorized by
985	law, and Such debt cancellation products shall not constitute
986	insurance for purposes of the Florida Insurance Code.
987	Section 6.  Subsection (3) of section 626.753, Florida
988	Statutes, is amended to read:
989	626.753  Sharing commissions; penalty.--
990	(3)(a)  A general lines agent may share commissions derived
991	from the sale of crop hail or multiple-peril crop insurance with
992	a production credit association organized under 12 U.S.C. ss.
993	2071-2077 12 U.S.C.A. ss. 2071-2077 or a federal land bank
994	association organized under 12 U.S.C. ss. 2091-2098 U.S.C.A. ss.
995	2091-2098 if the association has specifically approved the
996	insurance activity by its employees. The amount of commission to
997	be shared shall be determined by the general lines agent and the
998	company paying the commission.
999	(b)  This subsection does not allow such shared commissions
1000	to be used, directly or indirectly, for the purpose of providing
1001	any patronage dividend or other payment, discount, or credit to
1002	a member of a production credit association or federal land bank
1003	association if the dividend, payment, discount, or credit is
1004	directly or indirectly calculated on the basis of the premium
1005	charged to that member for crop hail or multiple-peril crop
1006	insurance.
1007	(c)  Any patronage dividend or other payment, discount, or
1008	credit provided to a member of a production credit association
1009	or federal land bank association, which dividend, payment,
1010	discount, or credit is directly or indirectly calculated on the
1011	basis of the premium charged to that member for crop hail or
1012	multiple-peril crop insurance, is an unlawful rebate that
1013	violates ss. 626.572 and 626.9541(1)(h).
1014	(d)  An agent violates this section if he or she knowingly
1015	engages in commission sharing with a production credit
1016	association or federal land bank association that provides
1017	patronage dividends or other payments, discounts, or credits
1018	which are unlawful rebates under paragraph (c).
1019	Section 7.  Paragraph (h) of subsection (1) of section
1020	626.9541, Florida Statutes, is amended to read:
1021	626.9541  Unfair methods of competition and unfair or
1022	deceptive acts or practices defined.--
1023	(1)  UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
1024	ACTS.--The following are defined as unfair methods of
1025	competition and unfair or deceptive acts or practices:
1026	(h)  Unlawful rebates.--
1027	1.  Except as otherwise expressly provided by law, or in an
1028	applicable filing with the office, knowingly:
1029	a.  Permitting, or offering to make, or making, any
1030	contract or agreement as to such contract other than as plainly
1031	expressed in the insurance contract issued thereon;
1032	b.  Paying, allowing, or giving, or offering to pay, allow,
1033	or give, directly or indirectly, as inducement to such insurance
1034	contract, any unlawful rebate of premiums payable on the
1035	contract, any special favor or advantage in the dividends or
1036	other benefits thereon, or any valuable consideration or
1037	inducement whatever not specified in the contract;
1038	c.  Giving, selling, or purchasing, or offering to give,
1039	sell, or purchase, as inducement to such insurance contract or
1040	in connection therewith, any stocks, bonds, or other securities
1041	of any insurance company or other corporation, association, or
1042	partnership, or any dividends or profits accrued thereon, or
1043	anything of value whatsoever not specified in the insurance
1044	contract.
1045	2.  Nothing in paragraph (g) or subparagraph 1. of this
1046	paragraph shall be construed as including within the definition
1047	of discrimination or unlawful rebates:
1048	a.  In the case of any contract of life insurance or life
1049	annuity, paying bonuses to all policyholders or otherwise
1050	abating their premiums in whole or in part out of surplus
1051	accumulated from nonparticipating insurance; provided that any
1052	such bonuses or abatement of premiums is fair and equitable to
1053	all policyholders and for the best interests of the company and
1054	its policyholders.
1055	b.  In the case of life insurance policies issued on the
1056	industrial debit plan, making allowance to policyholders who
1057	have continuously for a specified period made premium payments
1058	directly to an office of the insurer in an amount which fairly
1059	represents the saving in collection expenses.
1060	c.  Readjustment of the rate of premium for a group
1061	insurance policy based on the loss or expense thereunder, at the
1062	end of the first or any subsequent policy year of insurance
1063	thereunder, which may be made retroactive only for such policy
1064	year.
1065	d.  Issuance of life insurance policies or annuity
1066	contracts at rates less than the usual rates of premiums for
1067	such policies or contracts, as group insurance or employee
1068	insurance as defined in this code.
1069	e.  Issuing life or disability insurance policies on a
1070	salary savings, bank draft, preauthorized check, payroll
1071	deduction, or other similar plan at a reduced rate reasonably
1072	related to the savings made by the use of such plan.
1073	3.a.  No title insurer, or any member, employee, attorney,
1074	agent, or agency thereof, shall pay, allow, or give, or offer to
1075	pay, allow, or give, directly or indirectly, as inducement to
1076	title insurance, or after such insurance has been effected, any
1077	rebate or abatement of the premium or any other charge or fee,
1078	or provide any special favor or advantage, or any monetary
1079	consideration or inducement whatever.
1080	b.  Nothing in this subparagraph shall be construed as
1081	prohibiting the payment of fees to attorneys at law duly
1082	licensed to practice law in the courts of this state, for
1083	professional services, or as prohibiting the payment of earned
1084	portions of the premium to duly appointed agents or agencies who
1085	actually perform services for the title insurer. Nothing in this
1086	subparagraph shall be construed as prohibiting a rebate or
1087	abatement of an attorney's fee charged for professional
1088	services, or that portion of the premium that is not required to
1089	be retained by the insurer pursuant to s. 627.782(1), or any
1090	other agent charge or fee to the person responsible for paying
1091	the premium, charge, or fee.
1092	c.  No insured named in a policy, or any other person
1093	directly or indirectly connected with the transaction involving
1094	the issuance of such policy, including, but not limited to, any
1095	mortgage broker, real estate broker, builder, or attorney, any
1096	employee, agent, agency, or representative thereof, or any other
1097	person whatsoever, shall knowingly receive or accept, directly
1098	or indirectly, any rebate or abatement of any portion of the
1099	title insurance premium or of any other charge or fee or any
1100	monetary consideration or inducement whatsoever, except as set
1101	forth in sub-subparagraph b.; provided, in no event shall any
1102	portion of the attorney's fee, any portion of the premium that
1103	is not required to be retained by the insurer pursuant to s.
1104	627.782(1), any agent charge or fee, or any other monetary
1105	consideration or inducement be paid directly or indirectly for
1106	the referral of title insurance business.
1107	4.  Providing a patronage dividend or other payment,
1108	discount, or credit to a member of a production credit
1109	association organized under 12 U.S.C. ss. 2071-2077 or a federal
1110	land bank association organized under 12 U.S.C. ss. 2091-2098 is
1111	an unlawful rebate if the dividend or other payment, discount,
1112	or credit is directly or indirectly calculated on the basis of
1113	the premium charged to that member for crop hail or multiple-
1114	peril crop insurance.
1115	Section 8.  Paragraphs (a) and (i) of subsection (2) of
1116	section 627.062, Florida Statutes, are amended, and paragraph
1117	(k) is added to that subsection, to read:
1118	627.062  Rate standards.--
1119	(2)  As to all such classes of insurance:
1120	(a)  Insurers or rating organizations shall establish and
1121	use rates, rating schedules, or rating manuals to allow the
1122	insurer a reasonable rate of return on such classes of insurance
1123	written in this state. A copy of rates, rating schedules, rating
1124	manuals, premium credits or discount schedules, and surcharge
1125	schedules, and changes thereto, shall be filed with the office
1126	under one of the following procedures except as provided in
1127	subparagraph 3.:
1128	1.  If the filing is made at least 90 days before the
1129	proposed effective date and the filing is not implemented during
1130	the office's review of the filing and any proceeding and
1131	judicial review, then such filing shall be considered a "file
1132	and use" filing. In such case, the office shall finalize its
1133	review by issuance of a notice of intent to approve or a notice
1134	of intent to disapprove within 90 days after receipt of the
1135	filing. The notice of intent to approve and the notice of intent
1136	to disapprove constitute agency action for purposes of the
1137	Administrative Procedure Act. Requests for supporting
1138	information, requests for mathematical or mechanical
1139	corrections, or notification to the insurer by the office of its
1140	preliminary findings shall not toll the 90-day period during any
1141	such proceedings and subsequent judicial review. The rate shall
1142	be deemed approved if the office does not issue a notice of
1143	intent to approve or a notice of intent to disapprove within 90
1144	days after receipt of the filing.
1145	2.  If the filing is not made in accordance with the
1146	provisions of subparagraph 1., such filing shall be made as soon
1147	as practicable, but no later than 30 days after the effective
1148	date, and shall be considered a "use and file" filing. An
1149	insurer making a "use and file" filing is potentially subject to
1150	an order by the office to return to policyholders portions of
1151	rates found to be excessive, as provided in paragraph (h).
1152	3.  For all property insurance filings made or submitted
1153	after January 25, 2007, but before December 31, 2010 2009, an
1154	insurer seeking a rate that is greater than the rate most
1155	recently approved by the office shall make a "file and use"
1156	filing. For purposes of this subparagraph, motor vehicle
1157	collision and comprehensive coverages are not considered to be
1158	property coverages.
1159	(i)1.  Except as otherwise specifically provided in this
1160	chapter, the office shall not prohibit any insurer, including
1161	any residual market plan or joint underwriting association, from
1162	paying acquisition costs based on the full amount of premium, as
1163	defined in s. 627.403, applicable to any policy, or prohibit any
1164	such insurer from including the full amount of acquisition costs
1165	in a rate filing.
1166	2.  Unless specifically authorized by law, the office shall
1167	not interfere, directly or indirectly, with an insurer's right
1168	to solicit, sell, promote, or otherwise acquire policyholders
1169	and implement coverage using its own lawful methodologies,
1170	systems, agents, and approaches, including the calculation,
1171	manner, or amount of agent commissions, if any. This
1172	subparagraph applies only to rate filings made pursuant to this
1173	section.
1174	(k)  Effective January 1, 2010, notwithstanding any other
1175	provision of this section:
1176	1.  With respect to any residential property insurance
1177	subject to regulation under this section, a rate filing,
1178	including, but not limited to, any rate changes, rating factors,
1179	territories, classifications, discounts, and credits, with
1180	respect to any policy form, including endorsements issued with
1181	the form, that results in an overall average statewide premium
1182	increase or decrease of no more than 10 percent above or below
1183	the premium that would result from the insurer's rates then in
1184	effect shall not be subject to a determination by the office
1185	that the rate is excessive or unfairly discriminatory, except as
1186	provided in subparagraph 3. or any other provision of law,
1187	provided all changes specified in the filing do not result in an
1188	overall premium increase of more than 15 percent for any one
1189	territory for reasons related solely to the rate change. As used
1190	in this subparagraph, the term "insurer's rates then in effect"
1191	includes only rates that have been lawfully in effect under this
1192	section or rates that have been determined to be lawful through
1193	administrative proceedings or judicial proceedings.
1194	2.  An insurer may not make filings under this paragraph
1195	with respect to any policy form, including endorsements issued
1196	with the form, if the overall premium changes resulting from
1197	such filings exceed the amounts specified in this paragraph in
1198	any 12-month period. An insurer may proceed under other
1199	provisions of this section or other provisions of the laws of
1200	this state if the insurer seeks to exceed the premium or rate
1201	limitations of this paragraph.
1202	3.  This paragraph does not affect the authority of the
1203	office to disapprove a rate as inadequate or to disapprove a
1204	filing for the unlawful use of unfairly discriminatory rating
1205	factors that are prohibited by the laws of this state. An
1206	insurer electing to implement a rate change under this paragraph
1207	shall submit a filing to the office at least 30 days prior to
1208	the effective date of the rate change. The office shall have 30
1209	days after the filing's submission to review the filing and
1210	determine if the rate is inadequate or uses unfairly
1211	discriminatory rating factors. Absent a finding by the office
1212	within such 30-day period that the rate is inadequate or that
1213	the insurer has used unfairly discriminatory rating factors, the
1214	filing is deemed approved. If the insurer is implementing an
1215	overall rate decrease and the office finds during the 30-day
1216	period that the filing will result in inadequate premiums or
1217	otherwise endanger the insurer's solvency, the office shall
1218	suspend the rate decrease. If the insurer is implementing an
1219	overall rate increase the results of which continue to produce
1220	an inadequate rate, such increase shall proceed pending
1221	additional action by the office to ensure the adequacy of the
1222	rate.
1223	4.  This paragraph does not apply to rate filings for any
1224	insurance other than residential property insurance.
1225
1226	The provisions of this subsection shall not apply to workers'
1227	compensation and employer's liability insurance and to motor
1228	vehicle insurance.
1229	Section 9.  Section 627.0621, Florida Statutes, as amended
1230	by section 82 of chapter 2009-21, Laws of Florida, is amended to
1231	read:
1232	627.0621  Transparency in rate regulation.--
1233	(1)  DEFINITIONS.--As used in this section, the term:
1234	(a)  "Rate filing" means any original or amended rate
1235	residential property insurance filing.
1236	(b)  "Recommendation" means any proposed, preliminary, or
1237	final recommendation from an office actuary reviewing a rate
1238	filing with respect to the issue of approval or disapproval of
1239	the rate filing or with respect to rate indications that the
1240	office would consider acceptable.
1241	(2)  WEBSITE FOR PUBLIC ACCESS TO RATE FILING
1242	INFORMATION.--With respect to any rate filing made on or after
1243	July 1, 2008, the office shall provide the following information
1244	on a publicly accessible Internet website:
1245	(a)  The overall rate change requested by the insurer.
1246	(b)  All assumptions made by the office's actuaries.
1247	(c)  A statement describing any assumptions or methods that
1248	deviate from the actuarial standards of practice of the Casualty
1249	Actuarial Society or the American Academy of Actuaries,
1250	including an explanation of the nature, rationale, and effect of
1251	the deviation.
1252	(d)  All recommendations made by any office actuary who
1253	reviewed the rate filing.
1254	(e)  Certification by the office's actuary that, based on
1255	the actuary's knowledge, his or her recommendations are
1256	consistent with accepted actuarial principles.
1257	(f)  The overall rate change approved by the office.
1258	(3)  ATTORNEY-CLIENT PRIVILEGE; WORK PRODUCT.--It is the
1259	intent of the Legislature that the principles of the public
1260	records and open meetings laws apply to the assertion of
1261	attorney-client privilege and work product confidentiality by
1262	the office in connection with a challenge to its actions on a
1263	rate filing. Therefore, in any administrative or judicial
1264	proceeding relating to a rate filing, attorney-client privilege
1265	and work product exemptions from disclosure do not apply to
1266	communications with office attorneys or records prepared by or
1267	at the direction of an office attorney, except when the
1268	conditions of paragraphs (a) and (b) have been met:
1269	(a)  The communication or record reflects a mental
1270	impression, conclusion, litigation strategy, or legal theory of
1271	the attorney or office that was prepared exclusively for civil
1272	or criminal litigation or adversarial administrative
1273	proceedings.
1274	(b)  The communication occurred or the record was prepared
1275	after the initiation of an action in a court of competent
1276	jurisdiction, after the issuance of a notice of intent to deny a
1277	rate filing, or after the filing of a request for a proceeding
1278	under ss. 120.569 and 120.57.
1279	Section 10.  Subsection (4) is added to section 627.0628,
1280	Florida Statutes, to read:
1281	627.0628  Florida Commission on Hurricane Loss Projection
1282	Methodology; public records exemption; public meetings
1283	exemption.--
1284	(4)  REVIEW OF DISCOUNTS, CREDITS, OTHER RATE
1285	DIFFERENTIALS, AND REDUCTIONS IN DEDUCTIBLES RELATING TO
1286	WINDSTORM MITIGATION.--The commission shall hold public meetings
1287	for the purpose of receiving testimony and data regarding the
1288	implementation of windstorm mitigation discounts, credits, other
1289	rate differentials, and appropriate reductions in deductibles
1290	pursuant to s. 627.0629. After reviewing the testimony and data
1291	as well as any other information the commission deems
1292	appropriate, the commission shall present a report by October 1,
1293	2009, to the Governor, the Cabinet, the President of the Senate,
1294	and the Speaker of the House of Representatives, including
1295	recommendations on improving the process of assessing,
1296	determining, and applying windstorm mitigation discounts,
1297	credits, other rate differentials, and appropriate reductions in
1298	deductibles pursuant to s. 627.0629.
1299	Section 11.  Paragraph (b) of subsection (1) and subsection
1300	(5) of section 627.0629, Florida Statutes, are amended to read:
1301	627.0629  Residential property insurance; rate filings.--
1302	(1)
1303	(b)  By February 1, 2011, the Office of Insurance
1304	Regulation, in consultation with the Department of Financial
1305	Services and the Department of Community Affairs, shall develop
1306	and make publicly available a proposed method for insurers to
1307	establish discounts, credits, or other rate differentials for
1308	hurricane mitigation measures which directly correlate to the
1309	numerical rating assigned to a structure pursuant to the uniform
1310	home grading scale adopted by the Financial Services Commission
1311	pursuant to s. 215.55865, including any proposed changes to the
1312	uniform home grading scale. By October 1, 2011, the commission
1313	shall adopt rules requiring insurers to make rate filings for
1314	residential property insurance which revise insurers' discounts,
1315	credits, or other rate differentials for hurricane mitigation
1316	measures so that such rate differentials correlate directly to
1317	the uniform home grading scale. The rules may include such
1318	changes to the uniform home grading scale as the commission
1319	determines are necessary, and may specify the minimum required
1320	discounts, credits, or other rate differentials. Such rate
1321	differentials must be consistent with generally accepted
1322	actuarial principles and wind-loss mitigation studies. The rules
1323	shall allow a period of at least 2 years after the effective
1324	date of the revised mitigation discounts, credits, or other rate
1325	differentials for a property owner to obtain an inspection or
1326	otherwise qualify for the revised credit, during which time the
1327	insurer shall continue to apply the mitigation credit that was
1328	applied immediately prior to the effective date of the revised
1329	credit. Discounts, credits, and other rate differentials
1330	established for rate filings under this paragraph shall
1331	supersede, after adoption, the discounts, credits, and other
1332	rate differentials included in rate filings under paragraph (a).
1333	(5)  In order to provide an appropriate transition period,
1334	an insurer may, in its sole discretion, implement an approved
1335	rate filing for residential property insurance over a period of
1336	years. An insurer electing to phase in its rate filing must
1337	provide an informational notice to the office setting out its
1338	schedule for implementation of the phased-in rate filing. An
1339	insurer may include in its rate the actual cost of reinsurance
1340	without the addition of an expense or profit load for the
1341	insurer that duplicates coverage of the temporary increase in
1342	coverage limit (TICL) available from the Florida Hurricane
1343	Catastrophe Fund, even if the insurer does not purchase the TICL
1344	coverage, to the extent the total annual base rate increase does
1345	not exceed 10 percent as a result of such inclusion.
1346	Section 12.  Section 627.0655, Florida Statutes, is amended
1347	to read:
1348	627.0655  Policyholder loss or expense-related premium
1349	discounts.--An insurer or person authorized to engage in the
1350	business of insurance in this state may include, in the premium
1351	charged an insured for any policy, contract, or certificate of
1352	insurance, a discount based on the fact that another policy,
1353	contract, or certificate of any type has been purchased by the
1354	insured from the same insurer or insurer group, or, for policies
1355	issued or renewed before January 1, 2010, from the Citizens
1356	Property Insurance Corporation created under s. 627.351(6) if
1357	the same insurance agent is servicing both policies, or for
1358	policies issued or renewed before January 1, 2010, from an
1359	insurer that has removed the policy from the Citizens Property
1360	Insurance Corporation if the same insurance agent is servicing
1361	both policies.
1362	Section 13.  Paragraphs (y) through (ee) of subsection (6)
1363	of section 627.351, Florida Statutes, are redesignated as
1364	paragraphs (x) through (dd), respectively, and paragraphs (a),
1365	(b), (c), and (m) and present paragraph (x) of that subsection
1366	are amended to read:
1367	627.351  Insurance risk apportionment plans.--
1368	(6)  CITIZENS PROPERTY INSURANCE CORPORATION.--
1369	(a)1.  It is the public purpose of this subsection to
1370	ensure the existence of an orderly market for property insurance
1371	for Floridians and Florida businesses. The Legislature finds
1372	that private insurers are unwilling or unable to provide
1373	affordable property insurance coverage in this state to the
1374	extent sought and needed. The absence of affordable property
1375	insurance threatens the public health, safety, and welfare and
1376	likewise threatens the economic health of the state. The state
1377	therefore has a compelling public interest and a public purpose
1378	to assist in assuring that property in the state is insured and
1379	that it is insured at affordable rates so as to facilitate the
1380	remediation, reconstruction, and replacement of damaged or
1381	destroyed property in order to reduce or avoid the negative
1382	effects otherwise resulting to the public health, safety, and
1383	welfare, to the economy of the state, and to the revenues of the
1384	state and local governments which are needed to provide for the
1385	public welfare. It is necessary, therefore, to provide
1386	affordable property insurance to applicants who are in good
1387	faith entitled to procure insurance through the voluntary market
1388	but are unable to do so. The Legislature intends by this
1389	subsection that affordable property insurance be provided and
1390	that it continue to be provided, as long as necessary, through
1391	Citizens Property Insurance Corporation, a government entity
1392	that is an integral part of the state, and that is not a private
1393	insurance company. To that end, Citizens Property Insurance
1394	Corporation shall strive to increase the availability of
1395	affordable property insurance in this state, while achieving
1396	efficiencies and economies, and while providing service to
1397	policyholders, applicants, and agents which is no less than the
1398	quality generally provided in the voluntary market, for the
1399	achievement of the foregoing public purposes. Because it is
1400	essential for this government entity to have the maximum
1401	financial resources to pay claims following a catastrophic
1402	hurricane, it is the intent of the Legislature that Citizens
1403	Property Insurance Corporation continue to be an integral part
1404	of the state and that the income of the corporation be exempt
1405	from federal income taxation and that interest on the debt
1406	obligations issued by the corporation be exempt from federal
1407	income taxation.
1408	2.  The Residential Property and Casualty Joint
1409	Underwriting Association originally created by this statute
1410	shall be known, as of July 1, 2002, as the Citizens Property
1411	Insurance Corporation. The corporation shall provide insurance
1412	for residential and commercial property, for applicants who are
1413	in good faith entitled, but are unable, to procure insurance
1414	through the voluntary market. The corporation shall operate
1415	pursuant to a plan of operation approved by order of the
1416	Financial Services Commission. The plan is subject to continuous
1417	review by the commission. The commission may, by order, withdraw
1418	approval of all or part of a plan if the commission determines
1419	that conditions have changed since approval was granted and that
1420	the purposes of the plan require changes in the plan. The
1421	corporation shall continue to operate pursuant to the plan of
1422	operation approved by the Office of Insurance Regulation until
1423	October 1, 2006. For the purposes of this subsection,
1424	residential coverage includes both personal lines residential
1425	coverage, which consists of the type of coverage provided by
1426	homeowner's, mobile home owner's, dwelling, tenant's,
1427	condominium unit owner's, and similar policies, and commercial
1428	lines residential coverage, which consists of the type of
1429	coverage provided by condominium association, apartment
1430	building, and similar policies.
1431	3.  Effective January 1, 2009, a personal lines residential
1432	structure that has a dwelling replacement cost of $2 million or
1433	more, or a single condominium unit that has a combined dwelling
1434	and content replacement cost of $2 million or more is not
1435	eligible for coverage by the corporation. Such dwellings insured
1436	by the corporation on December 31, 2008, may continue to be
1437	covered by the corporation until the end of the policy term.
1438	However, such dwellings that are insured by the corporation and
1439	become ineligible for coverage due to the provisions of this
1440	subparagraph may reapply and obtain coverage if the property
1441	owner provides the corporation with a sworn affidavit from one
1442	or more insurance agents, on a form provided by the corporation,
1443	stating that the agents have made their best efforts to obtain
1444	coverage and that the property has been rejected for coverage by
1445	at least one authorized insurer and at least three surplus lines
1446	insurers. If such conditions are met, the dwelling may be
1447	insured by the corporation for up to 3 years, after which time
1448	the dwelling is ineligible for coverage. The office shall
1449	approve the method used by the corporation for valuing the
1450	dwelling replacement cost for the purposes of this subparagraph.
1451	If a policyholder is insured by the corporation prior to being
1452	determined to be ineligible pursuant to this subparagraph and
1453	such policyholder files a lawsuit challenging the determination,
1454	the policyholder may remain insured by the corporation until the
1455	conclusion of the litigation.
1456	4.  It is the intent of the Legislature that policyholders,
1457	applicants, and agents of the corporation receive service and
1458	treatment of the highest possible level but never less than that
1459	generally provided in the voluntary market. It also is intended
1460	that the corporation be held to service standards no less than
1461	those applied to insurers in the voluntary market by the office
1462	with respect to responsiveness, timeliness, customer courtesy,
1463	and overall dealings with policyholders, applicants, or agents
1464	of the corporation.
1465	5.  Effective January 1, 2009, a personal lines residential
1466	structure that is located in the "wind-borne debris region," as
1467	defined in s. 1609.2, International Building Code (2006), and
1468	that has an insured value on the structure of $750,000 or more
1469	is not eligible for coverage by the corporation unless the
1470	structure has opening protections as required under the Florida
1471	Building Code for a newly constructed residential structure in
1472	that area. A residential structure shall be deemed to comply
1473	with the requirements of this subparagraph if it has shutters or
1474	opening protections on all openings and if such opening
1475	protections complied with the Florida Building Code at the time
1476	they were installed. Effective January 1, 2010, for personal
1477	lines residential property insured by the corporation that is
1478	located in the wind-borne debris region and has an insured value
1479	on the structure of $500,000 or more, a prospective purchaser of
1480	any such residential property must be provided by the seller a
1481	written disclosure that contains the structure's windstorm
1482	mitigation rating based on the uniform home grading scale
1483	adopted under s. 215.55865. Such rating shall be provided to the
1484	purchaser at or before the time the purchaser executes a
1485	contract for sale and purchase.
1486	(b)1.  All insurers authorized to write one or more subject
1487	lines of business in this state are subject to assessment by the
1488	corporation and, for the purposes of this subsection, are
1489	referred to collectively as "assessable insurers." Insurers
1490	writing one or more subject lines of business in this state
1491	pursuant to part VIII of chapter 626 are not assessable
1492	insurers, but insureds who procure one or more subject lines of
1493	business in this state pursuant to part VIII of chapter 626 are
1494	subject to assessment by the corporation and are referred to
1495	collectively as "assessable insureds." An authorized insurer's
1496	assessment liability shall begin on the first day of the
1497	calendar year following the year in which the insurer was issued
1498	a certificate of authority to transact insurance for subject
1499	lines of business in this state and shall terminate 1 year after
1500	the end of the first calendar year during which the insurer no
1501	longer holds a certificate of authority to transact insurance
1502	for subject lines of business in this state.
1503	2.a.  All revenues, assets, liabilities, losses, and
1504	expenses of the corporation shall be divided into three separate
1505	accounts as follows:
1506	(I)  A personal lines account for personal residential
1507	policies issued by the corporation or issued by the Residential
1508	Property and Casualty Joint Underwriting Association and renewed
1509	by the corporation that provide comprehensive, multiperil
1510	coverage on risks that are not located in areas eligible for
1511	coverage in the Florida Windstorm Underwriting Association as
1512	those areas were defined on January 1, 2002, and for such
1513	policies that do not provide coverage for the peril of wind on
1514	risks that are located in such areas;
1515	(II)  A commercial lines account for commercial residential
1516	and commercial nonresidential policies issued by the corporation
1517	or issued by the Residential Property and Casualty Joint
1518	Underwriting Association and renewed by the corporation that
1519	provide coverage for basic property perils on risks that are not
1520	located in areas eligible for coverage in the Florida Windstorm
1521	Underwriting Association as those areas were defined on January
1522	1, 2002, and for such policies that do not provide coverage for
1523	the peril of wind on risks that are located in such areas; and
1524	(III)  A high-risk account for personal residential
1525	policies and commercial residential and commercial
1526	nonresidential property policies issued by the corporation or
1527	transferred to the corporation that provide coverage for the
1528	peril of wind on risks that are located in areas eligible for
1529	coverage in the Florida Windstorm Underwriting Association as
1530	those areas were defined on January 1, 2002. The corporation may
1531	offer policies that provide multiperil coverage and the
1532	corporation shall continue to offer policies that provide
1533	coverage only for the peril of wind for risks located in areas
1534	eligible for coverage in the high-risk account. In issuing
1535	multiperil coverage, the corporation may use its approved policy
1536	forms and rates for the personal lines account. An applicant or
1537	insured who is eligible to purchase a multiperil policy from the
1538	corporation may purchase a multiperil policy from an authorized
1539	insurer without prejudice to the applicant's or insured's
1540	eligibility to prospectively purchase a policy that provides
1541	coverage only for the peril of wind from the corporation. An
1542	applicant or insured who is eligible for a corporation policy
1543	that provides coverage only for the peril of wind may elect to
1544	purchase or retain such policy and also purchase or retain
1545	coverage excluding wind from an authorized insurer without
1546	prejudice to the applicant's or insured's eligibility to
1547	prospectively purchase a policy that provides multiperil
1548	coverage from the corporation. It is the goal of the Legislature
1549	that there would be an overall average savings of 10 percent or
1550	more for a policyholder who currently has a wind-only policy
1551	with the corporation, and an ex-wind policy with a voluntary
1552	insurer or the corporation, and who then obtains a multiperil
1553	policy from the corporation. It is the intent of the Legislature
1554	that the offer of multiperil coverage in the high-risk account
1555	be made and implemented in a manner that does not adversely
1556	affect the tax-exempt status of the corporation or
1557	creditworthiness of or security for currently outstanding
1558	financing obligations or credit facilities of the high-risk
1559	account, the personal lines account, or the commercial lines
1560	account. The high-risk account must also include quota share
1561	primary insurance under subparagraph (c)2. The area eligible for
1562	coverage under the high-risk account also includes the area
1563	within Port Canaveral, which is bordered on the south by the
1564	City of Cape Canaveral, bordered on the west by the Banana
1565	River, and bordered on the north by Federal Government property.
1566	b.  The three separate accounts must be maintained as long
1567	as financing obligations entered into by the Florida Windstorm
1568	Underwriting Association or Residential Property and Casualty
1569	Joint Underwriting Association are outstanding, in accordance
1570	with the terms of the corresponding financing documents. When
1571	the financing obligations are no longer outstanding, in
1572	accordance with the terms of the corresponding financing
1573	documents, the corporation may use a single account for all
1574	revenues, assets, liabilities, losses, and expenses of the
1575	corporation. Consistent with the requirement of this
1576	subparagraph and prudent investment policies that minimize the
1577	cost of carrying debt, the board shall exercise its best efforts
1578	to retire existing debt or to obtain approval of necessary
1579	parties to amend the terms of existing debt, so as to structure
1580	the most efficient plan to consolidate the three separate
1581	accounts into a single account. By February 1, 2007, the board
1582	shall submit a report to the Financial Services Commission, the
1583	President of the Senate, and the Speaker of the House of
1584	Representatives which includes an analysis of consolidating the
1585	accounts, the actions the board has taken to minimize the cost
1586	of carrying debt, and its recommendations for executing the most
1587	efficient plan.
1588	c.  Creditors of the Residential Property and Casualty
1589	Joint Underwriting Association and of the accounts specified in
1590	sub-sub-subparagraphs a.(I) and (II) may have a claim against,
1591	and recourse to, the accounts referred to in sub-sub-
1592	subparagraphs a.(I) and (II) and shall have no claim against, or
1593	recourse to, the account referred to in sub-sub-subparagraph
1594	a.(III). Creditors of the Florida Windstorm Underwriting
1595	Association shall have a claim against, and recourse to, the
1596	account referred to in sub-sub-subparagraph a.(III) and shall
1597	have no claim against, or recourse to, the accounts referred to
1598	in sub-sub-subparagraphs a.(I) and (II).
1599	d.  Revenues, assets, liabilities, losses, and expenses not
1600	attributable to particular accounts shall be prorated among the
1601	accounts.
1602	e.  The Legislature finds that the revenues of the
1603	corporation are revenues that are necessary to meet the
1604	requirements set forth in documents authorizing the issuance of
1605	bonds under this subsection.
1606	f.  No part of the income of the corporation may inure to
1607	the benefit of any private person.
1608	3.  With respect to a deficit in an account:
1609	a.  After accounting for the Citizens policyholder
1610	surcharge imposed under sub-subparagraph i., when the remaining
1611	projected deficit incurred in a particular calendar year is not
1612	greater than 6 percent of the aggregate statewide direct written
1613	premium for the subject lines of business for the prior calendar
1614	year, the entire deficit shall be recovered through regular
1615	assessments of assessable insurers under paragraph (p) and
1616	assessable insureds.
1617	b.  After accounting for the Citizens policyholder
1618	surcharge imposed under sub-subparagraph i., when the remaining
1619	projected deficit incurred in a particular calendar year exceeds
1620	6 percent of the aggregate statewide direct written premium for
1621	the subject lines of business for the prior calendar year, the
1622	corporation shall levy regular assessments on assessable
1623	insurers under paragraph (p) and on assessable insureds in an
1624	amount equal to the greater of 6 percent of the deficit or 6
1625	percent of the aggregate statewide direct written premium for
1626	the subject lines of business for the prior calendar year. Any
1627	remaining deficit shall be recovered through emergency
1628	assessments under sub-subparagraph d.
1629	c.  Each assessable insurer's share of the amount being
1630	assessed under sub-subparagraph a. or sub-subparagraph b. shall
1631	be in the proportion that the assessable insurer's direct
1632	written premium for the subject lines of business for the year
1633	preceding the assessment bears to the aggregate statewide direct
1634	written premium for the subject lines of business for that year.
1635	The assessment percentage applicable to each assessable insured
1636	is the ratio of the amount being assessed under sub-subparagraph
1637	a. or sub-subparagraph b. to the aggregate statewide direct
1638	written premium for the subject lines of business for the prior
1639	year. Assessments levied by the corporation on assessable
1640	insurers under sub-subparagraphs a. and b. shall be paid as
1641	required by the corporation's plan of operation and paragraph
1642	(p). Assessments levied by the corporation on assessable
1643	insureds under sub-subparagraphs a. and b. shall be collected by
1644	the surplus lines agent at the time the surplus lines agent
1645	collects the surplus lines tax required by s. 626.932 and shall
1646	be paid to the Florida Surplus Lines Service Office at the time
1647	the surplus lines agent pays the surplus lines tax to the
1648	Florida Surplus Lines Service Office. Upon receipt of regular
1649	assessments from surplus lines agents, the Florida Surplus Lines
1650	Service Office shall transfer the assessments directly to the
1651	corporation as determined by the corporation.
1652	d.  Upon a determination by the board of governors that a
1653	deficit in an account exceeds the amount that will be recovered
1654	through regular assessments under sub-subparagraph a. or sub-
1655	subparagraph b., plus the amount that is expected to be
1656	recovered through surcharges under sub-subparagraph i., as to
1657	the remaining projected deficit the board shall levy, after
1658	verification by the office, emergency assessments, for as many
1659	years as necessary to cover the deficits, to be collected by
1660	assessable insurers and the corporation and collected from
1661	assessable insureds upon issuance or renewal of policies for
1662	subject lines of business, excluding National Flood Insurance
1663	policies. The amount of the emergency assessment collected in a
1664	particular year shall be a uniform percentage of that year's
1665	direct written premium for subject lines of business and all
1666	accounts of the corporation, excluding National Flood Insurance
1667	Program policy premiums, as annually determined by the board and
1668	verified by the office. The office shall verify the arithmetic
1669	calculations involved in the board's determination within 30
1670	days after receipt of the information on which the determination
1671	was based. Notwithstanding any other provision of law, the
1672	corporation and each assessable insurer that writes subject
1673	lines of business shall collect emergency assessments from its
1674	policyholders without such obligation being affected by any
1675	credit, limitation, exemption, or deferment. Emergency
1676	assessments levied by the corporation on assessable insureds
1677	shall be collected by the surplus lines agent at the time the
1678	surplus lines agent collects the surplus lines tax required by
1679	s. 626.932 and shall be paid to the Florida Surplus Lines
1680	Service Office at the time the surplus lines agent pays the
1681	surplus lines tax to the Florida Surplus Lines Service Office.
1682	The emergency assessments so collected shall be transferred
1683	directly to the corporation on a periodic basis as determined by
1684	the corporation and shall be held by the corporation solely in
1685	the applicable account. The aggregate amount of emergency
1686	assessments levied for an account under this sub-subparagraph in
1687	any calendar year may, at the discretion of the board of
1688	governors, be less than but may not exceed the greater of 10
1689	percent of the amount needed to cover the deficit, plus
1690	interest, fees, commissions, required reserves, and other costs
1691	associated with financing of the original deficit, or 10 percent
1692	of the aggregate statewide direct written premium for subject
1693	lines of business and for all accounts of the corporation for
1694	the prior year, plus interest, fees, commissions, required
1695	reserves, and other costs associated with financing the deficit.
1696	e.  The corporation may pledge the proceeds of assessments,
1697	projected recoveries from the Florida Hurricane Catastrophe
1698	Fund, other insurance and reinsurance recoverables, policyholder
1699	surcharges and other surcharges, and other funds available to
1700	the corporation as the source of revenue for and to secure bonds
1701	issued under paragraph (p), bonds or other indebtedness issued
1702	under subparagraph (c)3., or lines of credit or other financing
1703	mechanisms issued or created under this subsection, or to retire
1704	any other debt incurred as a result of deficits or events giving
1705	rise to deficits, or in any other way that the board determines
1706	will efficiently recover such deficits. The purpose of the lines
1707	of credit or other financing mechanisms is to provide additional
1708	resources to assist the corporation in covering claims and
1709	expenses attributable to a catastrophe. As used in this
1710	subsection, the term "assessments" includes regular assessments
1711	under sub-subparagraph a., sub-subparagraph b., or subparagraph
1712	(p)1. and emergency assessments under sub-subparagraph d.
1713	Emergency assessments collected under sub-subparagraph d. are
1714	not part of an insurer's rates, are not premium, and are not
1715	subject to premium tax, fees, or commissions; however, failure
1716	to pay the emergency assessment shall be treated as failure to
1717	pay premium. The emergency assessments under sub-subparagraph d.
1718	shall continue as long as any bonds issued or other indebtedness
1719	incurred with respect to a deficit for which the assessment was
1720	imposed remain outstanding, unless adequate provision has been
1721	made for the payment of such bonds or other indebtedness
1722	pursuant to the documents governing such bonds or other
1723	indebtedness.
1724	f.  As used in this subsection for purposes of any deficit
1725	incurred on or after January 25, 2007, the term "subject lines
1726	of business" means insurance written by assessable insurers or
1727	procured by assessable insureds for all property and casualty
1728	lines of business in this state, but not including workers'
1729	compensation or medical malpractice. As used in the sub-
1730	subparagraph, the term "property and casualty lines of business"
1731	includes all lines of business identified on Form 2, Exhibit of
1732	Premiums and Losses, in the annual statement required of
1733	authorized insurers by s. 624.424 and any rule adopted under
1734	this section, except for those lines identified as accident and
1735	health insurance and except for policies written under the
1736	National Flood Insurance Program or the Federal Crop Insurance
1737	Program. For purposes of this sub-subparagraph, the term
1738	"workers' compensation" includes both workers' compensation
1739	insurance and excess workers' compensation insurance.
1740	g.  The Florida Surplus Lines Service Office shall
1741	determine annually the aggregate statewide written premium in
1742	subject lines of business procured by assessable insureds and
1743	shall report that information to the corporation in a form and
1744	at a time the corporation specifies to ensure that the
1745	corporation can meet the requirements of this subsection and the
1746	corporation's financing obligations.
1747	h.  The Florida Surplus Lines Service Office shall verify
1748	the proper application by surplus lines agents of assessment
1749	percentages for regular assessments and emergency assessments
1750	levied under this subparagraph on assessable insureds and shall
1751	assist the corporation in ensuring the accurate, timely
1752	collection and payment of assessments by surplus lines agents as
1753	required by the corporation.
1754	i.  If a deficit is incurred in any account in 2008 or
1755	thereafter, the board of governors shall levy a Citizens
1756	policyholder surcharge against all policyholders of the
1757	corporation for a 12-month period, which shall be collected at
1758	the time of issuance or renewal of a policy, as a uniform
1759	percentage of the premium for the policy of up to 25 15 percent
1760	of such premium, which funds shall be used to offset the
1761	deficit. Citizens policyholder surcharges under this sub-
1762	subparagraph are not considered premium and are not subject to
1763	commissions, fees, or premium taxes. However, failure to pay
1764	such surcharges shall be treated as failure to pay premium.
1765	j.  If the amount of any assessments or surcharges
1766	collected from corporation policyholders, assessable insurers or
1767	their policyholders, or assessable insureds exceeds the amount
1768	of the deficits, such excess amounts shall be remitted to and
1769	retained by the corporation in a reserve to be used by the
1770	corporation, as determined by the board of governors and
1771	approved by the office, to pay claims or reduce any past,
1772	present, or future plan-year deficits or to reduce outstanding
1773	debt.
1774	(c)  The plan of operation of the corporation:
1775	1.  Must provide for adoption of residential property and
1776	casualty insurance policy forms and commercial residential and
1777	nonresidential property insurance forms, which forms must be
1778	approved by the office prior to use. The corporation shall adopt
1779	the following policy forms:
1780	a.  Standard personal lines policy forms that are
1781	comprehensive multiperil policies providing full coverage of a
1782	residential property equivalent to the coverage provided in the
1783	private insurance market under an HO-3, HO-4, or HO-6 policy.
1784	b.  Basic personal lines policy forms that are policies
1785	similar to an HO-8 policy or a dwelling fire policy that provide
1786	coverage meeting the requirements of the secondary mortgage
1787	market, but which coverage is more limited than the coverage
1788	under a standard policy.
1789	c.  Commercial lines residential and nonresidential policy
1790	forms that are generally similar to the basic perils of full
1791	coverage obtainable for commercial residential structures and
1792	commercial nonresidential structures in the admitted voluntary
1793	market.
1794	d.  Personal lines and commercial lines residential
1795	property insurance forms that cover the peril of wind only. The
1796	forms are applicable only to residential properties located in
1797	areas eligible for coverage under the high-risk account referred
1798	to in sub-subparagraph (b)2.a.
1799	e.  Commercial lines nonresidential property insurance
1800	forms that cover the peril of wind only. The forms are
1801	applicable only to nonresidential properties located in areas
1802	eligible for coverage under the high-risk account referred to in
1803	sub-subparagraph (b)2.a.
1804	f.  The corporation may adopt variations of the policy
1805	forms listed in sub-subparagraphs a.-e. that contain more
1806	restrictive coverage.
1807	2.a.  Must provide that the corporation adopt a program in
1808	which the corporation and authorized insurers enter into quota
1809	share primary insurance agreements for hurricane coverage, as
1810	defined in s. 627.4025(2)(a), for eligible risks, and adopt
1811	property insurance forms for eligible risks which cover the
1812	peril of wind only. As used in this subsection, the term:
1813	(I)  "Quota share primary insurance" means an arrangement
1814	in which the primary hurricane coverage of an eligible risk is
1815	provided in specified percentages by the corporation and an
1816	authorized insurer. The corporation and authorized insurer are
1817	each solely responsible for a specified percentage of hurricane
1818	coverage of an eligible risk as set forth in a quota share
1819	primary insurance agreement between the corporation and an
1820	authorized insurer and the insurance contract. The
1821	responsibility of the corporation or authorized insurer to pay
1822	its specified percentage of hurricane losses of an eligible
1823	risk, as set forth in the quota share primary insurance
1824	agreement, may not be altered by the inability of the other
1825	party to the agreement to pay its specified percentage of
1826	hurricane losses. Eligible risks that are provided hurricane
1827	coverage through a quota share primary insurance arrangement
1828	must be provided policy forms that set forth the obligations of
1829	the corporation and authorized insurer under the arrangement,
1830	clearly specify the percentages of quota share primary insurance
1831	provided by the corporation and authorized insurer, and
1832	conspicuously and clearly state that neither the authorized
1833	insurer nor the corporation may be held responsible beyond its
1834	specified percentage of coverage of hurricane losses.
1835	(II)  "Eligible risks" means personal lines residential and
1836	commercial lines residential risks that meet the underwriting
1837	criteria of the corporation and are located in areas that were
1838	eligible for coverage by the Florida Windstorm Underwriting
1839	Association on January 1, 2002.
1840	b.  The corporation may enter into quota share primary
1841	insurance agreements with authorized insurers at corporation
1842	coverage levels of 90 percent and 50 percent.
1843	c.  If the corporation determines that additional coverage
1844	levels are necessary to maximize participation in quota share
1845	primary insurance agreements by authorized insurers, the
1846	corporation may establish additional coverage levels. However,
1847	the corporation's quota share primary insurance coverage level
1848	may not exceed 90 percent.
1849	d.  Any quota share primary insurance agreement entered
1850	into between an authorized insurer and the corporation must
1851	provide for a uniform specified percentage of coverage of
1852	hurricane losses, by county or territory as set forth by the
1853	corporation board, for all eligible risks of the authorized
1854	insurer covered under the quota share primary insurance
1855	agreement.
1856	e.  Any quota share primary insurance agreement entered
1857	into between an authorized insurer and the corporation is
1858	subject to review and approval by the office. However, such
1859	agreement shall be authorized only as to insurance contracts
1860	entered into between an authorized insurer and an insured who is
1861	already insured by the corporation for wind coverage.
1862	f.  For all eligible risks covered under quota share
1863	primary insurance agreements, the exposure and coverage levels
1864	for both the corporation and authorized insurers shall be
1865	reported by the corporation to the Florida Hurricane Catastrophe
1866	Fund. For all policies of eligible risks covered under quota
1867	share primary insurance agreements, the corporation and the
1868	authorized insurer shall maintain complete and accurate records
1869	for the purpose of exposure and loss reimbursement audits as
1870	required by Florida Hurricane Catastrophe Fund rules. The
1871	corporation and the authorized insurer shall each maintain
1872	duplicate copies of policy declaration pages and supporting
1873	claims documents.
1874	g.  The corporation board shall establish in its plan of
1875	operation standards for quota share agreements which ensure that
1876	there is no discriminatory application among insurers as to the
1877	terms of quota share agreements, pricing of quota share
1878	agreements, incentive provisions if any, and consideration paid
1879	for servicing policies or adjusting claims.
1880	h.  The quota share primary insurance agreement between the
1881	corporation and an authorized insurer must set forth the
1882	specific terms under which coverage is provided, including, but
1883	not limited to, the sale and servicing of policies issued under
1884	the agreement by the insurance agent of the authorized insurer
1885	producing the business, the reporting of information concerning
1886	eligible risks, the payment of premium to the corporation, and
1887	arrangements for the adjustment and payment of hurricane claims
1888	incurred on eligible risks by the claims adjuster and personnel
1889	of the authorized insurer. Entering into a quota sharing
1890	insurance agreement between the corporation and an authorized
1891	insurer shall be voluntary and at the discretion of the
1892	authorized insurer.
1893	3.  May provide that the corporation may employ or
1894	otherwise contract with individuals or other entities to provide
1895	administrative or professional services that may be appropriate
1896	to effectuate the plan. The corporation shall have the power to
1897	borrow funds, by issuing bonds or by incurring other
1898	indebtedness, and shall have other powers reasonably necessary
1899	to effectuate the requirements of this subsection, including,
1900	without limitation, the power to issue bonds and incur other
1901	indebtedness in order to refinance outstanding bonds or other
1902	indebtedness. The corporation may, but is not required to, seek
1903	judicial validation of its bonds or other indebtedness under
1904	chapter 75. The corporation may issue bonds or incur other
1905	indebtedness, or have bonds issued on its behalf by a unit of
1906	local government pursuant to subparagraph (p)2., in the absence
1907	of a hurricane or other weather-related event, upon a
1908	determination by the corporation, subject to approval by the
1909	office, that such action would enable it to efficiently meet the
1910	financial obligations of the corporation and that such
1911	financings are reasonably necessary to effectuate the
1912	requirements of this subsection. The corporation is authorized
1913	to take all actions needed to facilitate tax-free status for any
1914	such bonds or indebtedness, including formation of trusts or
1915	other affiliated entities. The corporation shall have the
1916	authority to pledge assessments, projected recoveries from the
1917	Florida Hurricane Catastrophe Fund, other reinsurance
1918	recoverables, market equalization and other surcharges, and
1919	other funds available to the corporation as security for bonds
1920	or other indebtedness. In recognition of s. 10, Art. I of the
1921	State Constitution, prohibiting the impairment of obligations of
1922	contracts, it is the intent of the Legislature that no action be
1923	taken whose purpose is to impair any bond indenture or financing
1924	agreement or any revenue source committed by contract to such
1925	bond or other indebtedness.
1926	4.a.  Must require that the corporation operate subject to
1927	the supervision and approval of a board of governors consisting
1928	of eight individuals who are residents of this state, from
1929	different geographical areas of this state. The Governor, the
1930	Chief Financial Officer, the President of the Senate, and the
1931	Speaker of the House of Representatives shall each appoint two
1932	members of the board. At least one of the two members appointed
1933	by each appointing officer must have demonstrated expertise in
1934	insurance. The Chief Financial Officer shall designate one of
1935	the appointees as chair. All board members serve at the pleasure
1936	of the appointing officer. All members of the board of governors
1937	are subject to removal at will by the officers who appointed
1938	them. Except as otherwise provided, all board members, including
1939	the chair, must be appointed to serve for 3-year terms beginning
1940	annually on a date designated by the plan. However, for the
1941	first term beginning on or after July 1, 2009, each appointing
1942	officer shall appoint one member of the board for a 2-year term
1943	and one member for a 3-year term. Any board vacancy shall be
1944	filled for the unexpired term by the appointing officer. The
1945	Chief Financial Officer shall appoint a technical advisory group
1946	to provide information and advice to the board of governors in
1947	connection with the board's duties under this subsection. The
1948	executive director and senior managers of the corporation shall
1949	be engaged by the board and serve at the pleasure of the board.
1950	Any executive director appointed on or after July 1, 2006, is
1951	subject to confirmation by the Senate. The executive director is
1952	responsible for employing other staff as the corporation may
1953	require, subject to review and concurrence by the board.
1954	b.  The board shall create a Market Accountability Advisory
1955	Committee to assist the corporation in developing awareness of
1956	its rates and its customer and agent service levels in
1957	relationship to the voluntary market insurers writing similar
1958	coverage. The members of the advisory committee shall consist of
1959	the following 11 persons, one of whom must be elected chair by
1960	the members of the committee: four representatives, one
1961	appointed by the Florida Association of Insurance Agents, one by
1962	the Florida Association of Insurance and Financial Advisors, one
1963	by the Professional Insurance Agents of Florida, and one by the
1964	Latin American Association of Insurance Agencies; three
1965	representatives appointed by the insurers with the three highest
1966	voluntary market share of residential property insurance
1967	business in the state; one representative from the Office of
1968	Insurance Regulation; one consumer appointed by the board who is
1969	insured by the corporation at the time of appointment to the
1970	committee; one representative appointed by the Florida
1971	Association of Realtors; and one representative appointed by the
1972	Florida Bankers Association. All members must serve for 3-year
1973	terms and may serve for consecutive terms. The committee shall
1974	report to the corporation at each board meeting on insurance
1975	market issues which may include rates and rate competition with
1976	the voluntary market; service, including policy issuance, claims
1977	processing, and general responsiveness to policyholders,
1978	applicants, and agents; and matters relating to depopulation.
1979	5.  Must provide a procedure for determining the
1980	eligibility of a risk for coverage, as follows:
1981	a.  Subject to the provisions of s. 627.3517, with respect
1982	to personal lines residential risks, if the risk is offered
1983	coverage from an authorized insurer at the insurer's approved
1984	rate under either a standard policy including wind coverage or,
1985	if consistent with the insurer's underwriting rules as filed
1986	with the office, a basic policy including wind coverage, for a
1987	new application to the corporation for coverage, the risk is not
1988	eligible for any policy issued by the corporation unless the
1989	premium for coverage from the authorized insurer is more than 15
1990	percent greater than the premium for comparable coverage from
1991	the corporation. If the risk is not able to obtain any such
1992	offer, the risk is eligible for either a standard policy
1993	including wind coverage or a basic policy including wind
1994	coverage issued by the corporation; however, if the risk could
1995	not be insured under a standard policy including wind coverage
1996	regardless of market conditions, the risk shall be eligible for
1997	a basic policy including wind coverage unless rejected under
1998	subparagraph 8. However, with regard to a policyholder of the
1999	corporation or a policyholder removed from the corporation
2000	through an assumption agreement until the end of the assumption
2001	period, the policyholder remains eligible for coverage from the
2002	corporation regardless of any offer of coverage from an
2003	authorized insurer or surplus lines insurer. The corporation
2004	shall determine the type of policy to be provided on the basis
2005	of objective standards specified in the underwriting manual and
2006	based on generally accepted underwriting practices.
2007	(I)  If the risk accepts an offer of coverage through the
2008	market assistance plan or an offer of coverage through a
2009	mechanism established by the corporation before a policy is
2010	issued to the risk by the corporation or during the first 30
2011	days of coverage by the corporation, and the producing agent who
2012	submitted the application to the plan or to the corporation is
2013	not currently appointed by the insurer, the insurer shall:
2014	(A)  Pay to the producing agent of record of the policy,
2015	for the first year, an amount that is the greater of the
2016	insurer's usual and customary commission for the type of policy
2017	written or a fee equal to the usual and customary commission of
2018	the corporation; or
2019	(B)  Offer to allow the producing agent of record of the
2020	policy to continue servicing the policy for a period of not less
2021	than 1 year and offer to pay the agent the greater of the
2022	insurer's or the corporation's usual and customary commission
2023	for the type of policy written.
2024
2025	If the producing agent is unwilling or unable to accept
2026	appointment, the new insurer shall pay the agent in accordance
2027	with sub-sub-sub-subparagraph (A).
2028	(II)  When the corporation enters into a contractual
2029	agreement for a take-out plan, the producing agent of record of
2030	the corporation policy is entitled to retain any unearned
2031	commission on the policy, and the insurer shall:
2032	(A)  Pay to the producing agent of record of the
2033	corporation policy, for the first year, an amount that is the
2034	greater of the insurer's usual and customary commission for the
2035	type of policy written or a fee equal to the usual and customary
2036	commission of the corporation; or
2037	(B)  Offer to allow the producing agent of record of the
2038	corporation policy to continue servicing the policy for a period
2039	of not less than 1 year and offer to pay the agent the greater
2040	of the insurer's or the corporation's usual and customary
2041	commission for the type of policy written.
2042
2043	If the producing agent is unwilling or unable to accept
2044	appointment, the new insurer shall pay the agent in accordance
2045	with sub-sub-sub-subparagraph (A).
2046	b.  With respect to commercial lines residential risks, for
2047	a new application to the corporation for coverage, if the risk
2048	is offered coverage under a policy including wind coverage from
2049	an authorized insurer at its approved rate, the risk is not
2050	eligible for any policy issued by the corporation unless the
2051	premium for coverage from the authorized insurer is more than 15
2052	percent greater than the premium for comparable coverage from
2053	the corporation. If the risk is not able to obtain any such
2054	offer, the risk is eligible for a policy including wind coverage
2055	issued by the corporation. However, with regard to a
2056	policyholder of the corporation or a policyholder removed from
2057	the corporation through an assumption agreement until the end of
2058	the assumption period, the policyholder remains eligible for
2059	coverage from the corporation regardless of any offer of
2060	coverage from an authorized insurer or surplus lines insurer.
2061	(I)  If the risk accepts an offer of coverage through the
2062	market assistance plan or an offer of coverage through a
2063	mechanism established by the corporation before a policy is
2064	issued to the risk by the corporation or during the first 30
2065	days of coverage by the corporation, and the producing agent who
2066	submitted the application to the plan or the corporation is not
2067	currently appointed by the insurer, the insurer shall:
2068	(A)  Pay to the producing agent of record of the policy,
2069	for the first year, an amount that is the greater of the
2070	insurer's usual and customary commission for the type of policy
2071	written or a fee equal to the usual and customary commission of
2072	the corporation; or
2073	(B)  Offer to allow the producing agent of record of the
2074	policy to continue servicing the policy for a period of not less
2075	than 1 year and offer to pay the agent the greater of the
2076	insurer's or the corporation's usual and customary commission
2077	for the type of policy written.
2078
2079	If the producing agent is unwilling or unable to accept
2080	appointment, the new insurer shall pay the agent in accordance
2081	with sub-sub-sub-subparagraph (A).
2082	(II)  When the corporation enters into a contractual
2083	agreement for a take-out plan, the producing agent of record of
2084	the corporation policy is entitled to retain any unearned
2085	commission on the policy, and the insurer shall:
2086	(A)  Pay to the producing agent of record of the
2087	corporation policy, for the first year, an amount that is the
2088	greater of the insurer's usual and customary commission for the
2089	type of policy written or a fee equal to the usual and customary
2090	commission of the corporation; or
2091	(B)  Offer to allow the producing agent of record of the
2092	corporation policy to continue servicing the policy for a period
2093	of not less than 1 year and offer to pay the agent the greater
2094	of the insurer's or the corporation's usual and customary
2095	commission for the type of policy written.
2096
2097	If the producing agent is unwilling or unable to accept
2098	appointment, the new insurer shall pay the agent in accordance
2099	with sub-sub-sub-subparagraph (A).
2100	c.  For purposes of determining comparable coverage under
2101	sub-subparagraphs a. and b., the comparison shall be based on
2102	those forms and coverages that are reasonably comparable. The
2103	corporation may rely on a determination of comparable coverage
2104	and premium made by the producing agent who submits the
2105	application to the corporation, made in the agent's capacity as
2106	the corporation's agent. A comparison may be made solely of the
2107	premium with respect to the main building or structure only on
2108	the following basis: the same coverage A or other building
2109	limits; the same percentage hurricane deductible that applies on
2110	an annual basis or that applies to each hurricane for commercial
2111	residential property; the same percentage of ordinance and law
2112	coverage, if the same limit is offered by both the corporation
2113	and the authorized insurer; the same mitigation credits, to the
2114	extent the same types of credits are offered both by the
2115	corporation and the authorized insurer; the same method for loss
2116	payment, such as replacement cost or actual cash value, if the
2117	same method is offered both by the corporation and the
2118	authorized insurer in accordance with underwriting rules; and
2119	any other form or coverage that is reasonably comparable as
2120	determined by the board. If an application is submitted to the
2121	corporation for wind-only coverage in the high-risk account, the
2122	premium for the corporation's wind-only policy plus the premium
2123	for the ex-wind policy that is offered by an authorized insurer
2124	to the applicant shall be compared to the premium for multiperil
2125	coverage offered by an authorized insurer, subject to the
2126	standards for comparison specified in this subparagraph. If the
2127	corporation or the applicant requests from the authorized
2128	insurer a breakdown of the premium of the offer by types of
2129	coverage so that a comparison may be made by the corporation or
2130	its agent and the authorized insurer refuses or is unable to
2131	provide such information, the corporation may treat the offer as
2132	not being an offer of coverage from an authorized insurer at the
2133	insurer's approved rate.
2134	6.  Must include rules for classifications of risks and
2135	rates therefor.
2136	7.  Must provide that if premium and investment income for
2137	an account attributable to a particular calendar year are in
2138	excess of projected losses and expenses for the account
2139	attributable to that year, such excess shall be held in surplus
2140	in the account. Such surplus shall be available to defray
2141	deficits in that account as to future years and shall be used
2142	for that purpose prior to assessing assessable insurers and
2143	assessable insureds as to any calendar year.
2144	8.  Must provide objective criteria and procedures to be
2145	uniformly applied for all applicants in determining whether an
2146	individual risk is so hazardous as to be uninsurable. In making
2147	this determination and in establishing the criteria and
2148	procedures, the following shall be considered:
2149	a.  Whether the likelihood of a loss for the individual
2150	risk is substantially higher than for other risks of the same
2151	class; and
2152	b.  Whether the uncertainty associated with the individual
2153	risk is such that an appropriate premium cannot be determined.
2154
2155	The acceptance or rejection of a risk by the corporation shall
2156	be construed as the private placement of insurance, and the
2157	provisions of chapter 120 shall not apply.
2158	9.  Must provide that the corporation shall make its best
2159	efforts to procure catastrophe reinsurance at reasonable rates,
2160	to cover its projected 100-year probable maximum loss as
2161	determined by the board of governors.
2162	10.  The policies issued by the corporation must provide
2163	that, if the corporation or the market assistance plan obtains
2164	an offer from an authorized insurer to cover the risk at its
2165	approved rates, the risk is no longer eligible for renewal
2166	through the corporation, except as otherwise provided in this
2167	subsection.
2168	11.  Corporation policies and applications must include a
2169	notice that the corporation policy could, under this section, be
2170	replaced with a policy issued by an authorized insurer that does
2171	not provide coverage identical to the coverage provided by the
2172	corporation. The notice shall also specify that acceptance of
2173	corporation coverage creates a conclusive presumption that the
2174	applicant or policyholder is aware of this potential.
2175	12.  May establish, subject to approval by the office,
2176	different eligibility requirements and operational procedures
2177	for any line or type of coverage for any specified county or
2178	area if the board determines that such changes to the
2179	eligibility requirements and operational procedures are
2180	justified due to the voluntary market being sufficiently stable
2181	and competitive in such area or for such line or type of
2182	coverage and that consumers who, in good faith, are unable to
2183	obtain insurance through the voluntary market through ordinary
2184	methods would continue to have access to coverage from the
2185	corporation. When coverage is sought in connection with a real
2186	property transfer, such requirements and procedures shall not
2187	provide for an effective date of coverage later than the date of
2188	the closing of the transfer as established by the transferor,
2189	the transferee, and, if applicable, the lender.
2190	13.  Must provide that, with respect to the high-risk
2191	account, any assessable insurer with a surplus as to
2192	policyholders of $25 million or less writing 25 percent or more
2193	of its total countrywide property insurance premiums in this
2194	state may petition the office, within the first 90 days of each
2195	calendar year, to qualify as a limited apportionment company. A
2196	regular assessment levied by the corporation on a limited
2197	apportionment company for a deficit incurred by the corporation
2198	for the high-risk account in 2006 or thereafter may be paid to
2199	the corporation on a monthly basis as the assessments are
2200	collected by the limited apportionment company from its insureds
2201	pursuant to s. 627.3512, but the regular assessment must be paid
2202	in full within 12 months after being levied by the corporation.
2203	A limited apportionment company shall collect from its
2204	policyholders any emergency assessment imposed under sub-
2205	subparagraph (b)3.d. The plan shall provide that, if the office
2206	determines that any regular assessment will result in an
2207	impairment of the surplus of a limited apportionment company,
2208	the office may direct that all or part of such assessment be
2209	deferred as provided in subparagraph (p)4. However, there shall
2210	be no limitation or deferment of an emergency assessment to be
2211	collected from policyholders under sub-subparagraph (b)3.d.
2212	14.  Must provide that the corporation appoint as its
2213	licensed agents only those agents who also hold an appointment
2214	as defined in s. 626.015(3) with an insurer who at the time of
2215	the agent's initial appointment by the corporation is authorized
2216	to write and is actually writing personal lines residential
2217	property coverage, commercial residential property coverage, or
2218	commercial nonresidential property coverage within the state.
2219	15.  Must provide, by July 1, 2007, a premium payment plan
2220	option to its policyholders which allows at a minimum for
2221	quarterly and semiannual payment of premiums. A monthly payment
2222	plan may, but is not required to, be offered.
2223	16.  Must limit coverage on mobile homes or manufactured
2224	homes built prior to 1994 to actual cash value of the dwelling
2225	rather than replacement costs of the dwelling.
2226	17.  May provide such limits of coverage as the board
2227	determines, consistent with the requirements of this subsection.
2228	18.  May require commercial property to meet specified
2229	hurricane mitigation construction features as a condition of
2230	eligibility for coverage.
2231	(m)1.  Rates for coverage provided by the corporation shall
2232	be actuarially sound and subject to the requirements of s.
2233	627.062, except as otherwise provided in this paragraph. The
2234	corporation shall file its recommended rates with the office at
2235	least annually. The corporation shall provide any additional
2236	information regarding the rates which the office requires. The
2237	office shall consider the recommendations of the board and issue
2238	a final order establishing the rates for the corporation within
2239	45 days after the recommended rates are filed. The corporation
2240	may not pursue an administrative challenge or judicial review of
2241	the final order of the office.
2242	2.  In addition to the rates otherwise determined pursuant
2243	to this paragraph, the corporation shall impose and collect an
2244	amount equal to the premium tax provided for in s. 624.509 to
2245	augment the financial resources of the corporation.
2246	3.  After the public hurricane loss-projection model under
2247	s. 627.06281 has been found to be accurate and reliable by the
2248	Florida Commission on Hurricane Loss Projection Methodology,
2249	that model shall serve as the minimum benchmark for determining
2250	the windstorm portion of the corporation's rates. This
2251	subparagraph does not require or allow the corporation to adopt
2252	rates lower than the rates otherwise required or allowed by this
2253	paragraph.
2254	4.  The rate filings for the corporation which were
2255	approved by the office and which took effect January 1, 2007,
2256	are rescinded, except for those rates that were lowered. As soon
2257	as possible, the corporation shall begin using the lower rates
2258	that were in effect on December 31, 2006, and shall provide
2259	refunds to policyholders who have paid higher rates as a result
2260	of that rate filing. The rates in effect on December 31, 2006,
2261	shall remain in effect for the 2007 and 2008 calendar years
2262	except for any rate change that results in a lower rate. The
2263	next rate change that may increase rates shall take effect
2264	pursuant to a new rate filing recommended by the corporation and
2265	established by the office, subject to the requirements of this
2266	paragraph.
2267	5.  Beginning on July 15, 2009, and each year thereafter,
2268	the corporation must make a recommended actuarially sound rate
2269	filing for each personal and commercial line of business it
2270	writes, to be effective no earlier than January 1, 2010.
2271	6.  The Legislature finds that it is in the public interest
2272	to ensure that actuarially sound rates for coverage by the
2273	corporation be implemented incrementally to provide rate
2274	stability and predictability to its policyholders.
2275	7.  Beginning on or after January 1, 2010, the corporation
2276	shall begin to implement actuarially sound rates for each
2277	commercial and personal line of business it writes, which may
2278	not exceed an average statewide increase of 10 percent or exceed
2279	20 percent for any single policy issued by the corporation,
2280	excluding coverage changes and surcharges.
2281	8.  The corporation's incremental implementation of rates
2282	as prescribed in subparagraph 7. shall cease for any line of
2283	business written by the corporation after actuarially sound
2284	rates as prescribed in subparagraph 1. are achieved. Thereafter,
2285	the corporation shall annually make a recommended actuarially
2286	sound rate filing for each commercial and personal line of
2287	business it writes.
2288	9.  In addition to the rate increase required pursuant to
2289	subparagraph 7., the corporation may increase its rates an
2290	amount sufficient to recoup additional reimbursement premium
2291	paid to the Florida Hurricane Catastrophe Fund due to the
2292	application of a cash build-up factor.
2293	10.  Beginning April 1, 2010, and each quarter thereafter,
2294	the corporation shall transfer 10 percent of the funds received
2295	from the rate increase prescribed by subparagraph 7. to the
2296	Insurance Regulatory Trust Fund in the Department of Financial
2297	Services. The corporation's transfer of such funds shall cease
2298	upon the corporation's implementation of actuarially sound rates
2299	as prescribed in subparagraph 1.
2300	(x)  It is the intent of the Legislature that the
2301	amendments to this subsection enacted in 2002 should, over time,
2302	reduce the probable maximum windstorm losses in the residual
2303	markets and should reduce the potential assessments to be levied
2304	on property insurers and policyholders statewide. In furtherance
2305	of this intent:
2306	1.  The board shall, on or before February 1 of each year,
2307	provide a report to the President of the Senate and the Speaker
2308	of the House of Representatives showing the reduction or
2309	increase in the 100-year probable maximum loss attributable to
2310	wind-only coverages and the quota share program under this
2311	subsection combined, as compared to the benchmark 100-year
2312	probable maximum loss of the Florida Windstorm Underwriting
2313	Association. For purposes of this paragraph, the benchmark 100-
2314	year probable maximum loss of the Florida Windstorm Underwriting
2315	Association shall be the calculation dated February 2001 and
2316	based on November 30, 2000, exposures. In order to ensure
2317	comparability of data, the board shall use the same methods for
2318	calculating its probable maximum loss as were used to calculate
2319	the benchmark probable maximum loss.
2320	2.  Beginning February 1, 2010, if the report under
2321	subparagraph 1. for any year indicates that the 100-year
2322	probable maximum loss attributable to wind-only coverages and
2323	the quota share program combined does not reflect a reduction of
2324	at least 25 percent from the benchmark, the board shall reduce
2325	the boundaries of the high-risk area eligible for wind-only
2326	coverages under this subsection in a manner calculated to reduce
2327	such probable maximum loss to an amount at least 25 percent
2328	below the benchmark.
2329	3.  Beginning February 1, 2015, if the report under
2330	subparagraph 1. for any year indicates that the 100-year
2331	probable maximum loss attributable to wind-only coverages and
2332	the quota share program combined does not reflect a reduction of
2333	at least 50 percent from the benchmark, the boundaries of the
2334	high-risk area eligible for wind-only coverages under this
2335	subsection shall be reduced by the elimination of any area that
2336	is not seaward of a line 1,000 feet inland from the Intracoastal
2337	Waterway.
2338	Section 14.  Subsection (2) of section 627.711, Florida
2339	Statutes, is amended, and subsection (3) is added to that
2340	section, to read:
2341	627.711  Notice of premium discounts for hurricane loss
2342	mitigation; uniform mitigation verification inspection form.--
2343	(2)(a)  By July 1, 2007, the Financial Services Commission
2344	shall develop by rule a uniform mitigation verification
2345	inspection form that shall be used by all insurers when
2346	submitted by policyholders for the purpose of factoring
2347	discounts for wind insurance. In developing the form, the
2348	commission shall seek input from insurance, construction, and
2349	building code representatives. Further, the commission shall
2350	provide guidance as to the length of time the inspection results
2351	are valid. An insurer shall accept as valid a uniform mitigation
2352	verification form certified by the Department of Financial
2353	Services or signed by:
2354	(a)  A hurricane mitigation inspector employed by an
2355	approved My Safe Florida Home wind certification entity;
2356	1.(b)  A building code inspector certified under s.
2357	468.607;
2358	2.(c)  A general, building, or residential contractor
2359	licensed under s. 489.111;
2360	3.(d)  A professional engineer licensed under s. 471.015
2361	who has passed the appropriate equivalency test of the Building
2362	Code Training Program as required by s. 553.841; or
2363	4.(e)  A professional architect licensed under s. 481.213.
2364	(b)  An insurer may contract with inspection firms at the
2365	insurer's expense to review mitigation verification forms and to
2366	reinspect properties for which the insurer receives mitigation
2367	verification forms to ensure that the forms are valid.
2368	(3)  An individual or entity who knowingly provides or
2369	utters a false or fraudulent mitigation verification form with
2370	the intent to obtain or receive a discount on an insurance
2371	premium to which the individual or entity is not entitled
2372	commits a misdemeanor of the first degree, punishable as
2373	provided in s. 775.082 or s. 775.083.
2374	Section 15.  Subsection (1) and paragraph (c) of subsection
2375	(2) of section 627.712, Florida Statutes, are amended to read:
2376	627.712  Residential windstorm coverage required;
2377	availability of exclusions for windstorm or contents.--
2378	(1)  An insurer issuing a residential property insurance
2379	policy must provide windstorm coverage. Except as provided in
2380	paragraph (2)(c), this section does not apply with respect to
2381	risks that are eligible for wind-only coverage from Citizens
2382	Property Insurance Corporation under s. 627.351(6) and with
2383	respect to risks that are not eligible for coverage from
2384	Citizens Property Insurance Corporation under s. 627.351(6)(a)3.
2385	or 5. A risk ineligible for Citizens coverage under s.
2386	627.351(6)(a)3. or 5. is exempt from the requirements of this
2387	section only if the risk is located within the boundaries of the
2388	high-risk account of the corporation.
2389	(2)  A property insurer must make available, at the option
2390	of the policyholder, an exclusion of windstorm coverage.
2391	(c)  If the residential structure is eligible for wind-only
2392	coverage from Citizens Property Insurance Corporation, An
2393	insurer nonrenewing a policy and issuing a replacement policy,
2394	or issuing a new policy, that does not provide wind coverage
2395	shall provide a notice to the mortgageholder or lienholder
2396	indicating the policyholder has elected coverage that does not
2397	cover wind.
2398	Section 16.  Section 631.65, Florida Statutes, is amended
2399	to read:
2400	631.65  Prohibited advertisement or solicitation.--No
2401	person shall make, publish, disseminate, circulate, or place
2402	before the public, or cause, directly or indirectly, to be made,
2403	published, disseminated, circulated, or placed before the
2404	public, in a newspaper, magazine, or other publication, or in
2405	the form of a notice, circular, pamphlet, letter, or poster, or
2406	over any radio station or television station, or in any other
2407	way, any advertisement, announcement, or statement which uses
2408	the existence of the insurance guaranty association for the
2409	purpose of sales, solicitation, or inducement to purchase any
2410	form of insurance covered under this part. However, nothing in
2411	this section may be construed to prevent a duly licensed
2412	insurance agent from providing explanations concerning the
2413	existence or application of the insurance guaranty association
2414	to policyholders, prospective policyholders, or applicants for
2415	coverage.
2416	Section 17.  The My Safe Florida Home Program specified in
2417	s. 215.5586, Florida Statutes, shall use the funds transferred
2418	to the Insurance Regulatory Trust Fund pursuant to s.
2419	627.351(6)(m)10., Florida Statutes, solely for the provision of
2420	mitigation grants in accordance with s. 215.5586(2), Florida
2421	Statutes, to policyholders of Citizens Property Insurance
2422	Corporation on June 1, 2009, who are otherwise eligible for
2423	grants from the My Safe Florida Home Program. The department
2424	shall establish a separate account within the trust fund for
2425	accounting purposes.
2426	Section 18.  Section 626.854, Florida Statutes, is amended
2427	to read:
2428	626.854  "Public adjuster" defined; prohibitions.--The
2429	Legislature finds that it is necessary for the protection of the
2430	public to regulate public insurance adjusters and to prevent the
2431	unauthorized practice of law.
2432	(1)  A "public adjuster" is any person, except a duly
2433	licensed attorney at law as hereinafter in s. 626.860 provided,
2434	who, for money, commission, or any other thing of value,
2435	prepares, completes, or files an insurance claim form for an
2436	insured or third-party claimant or who, for money, commission,
2437	or any other thing of value, acts or aids in any manner on
2438	behalf of an insured or third-party claimant in negotiating for
2439	or effecting the settlement of a claim or claims for loss or
2440	damage covered by an insurance contract or who advertises for
2441	employment as an adjuster of such claims, and also includes any
2442	person who, for money, commission, or any other thing of value,
2443	solicits, investigates, or adjusts such claims on behalf of any
2444	such public adjuster.
2445	(2)  This definition does not apply to:
2446	(a)  A licensed health care provider or employee thereof
2447	who prepares or files a health insurance claim form on behalf of
2448	a patient.
2449	(b)  A person who files a health claim on behalf of another
2450	and does so without compensation.
2451	(3)  A public adjuster may not give legal advice. A public
2452	adjuster may not act on behalf of or aid any person in
2453	negotiating or settling a claim relating to bodily injury,
2454	death, or noneconomic damages.
2455	(4)  For purposes of this section, the term "insured"
2456	includes only the policyholder and any beneficiaries named or
2457	similarly identified in the policy.
2458	(5)  A public adjuster may not directly or indirectly
2459	through any other person or entity solicit an insured or
2460	claimant by any means except on Monday through Saturday of each
2461	week and only between the hours of 8 a.m. and 8 p.m. on those
2462	days.
2463	(6)  A public adjuster may not directly or indirectly
2464	through any other person or entity initiate contact or engage in
2465	face-to-face or telephonic solicitation or enter into a contract
2466	with any insured or claimant under an insurance policy until at
2467	least 48 hours after the occurrence of an event that may be the
2468	subject of a claim under the insurance policy unless contact is
2469	initiated by the insured or claimant.
2470	(7)  An insured or claimant may cancel a public adjuster's
2471	contract to adjust a claim without penalty or obligation within
2472	3 business days after the date on which the contract is executed
2473	or within 3 business days after the date on which the insured or
2474	claimant has notified the insurer of the claim, by phone or in
2475	writing, whichever is later. The public adjuster's contract
2476	shall disclose to the insured or claimant his or her right to
2477	cancel the contract and advise the insured or claimant that
2478	notice of cancellation must be submitted in writing and sent by
2479	certified mail, return receipt requested, or other form of
2480	mailing which provides proof thereof, to the public adjuster at
2481	the address specified in the contract; provided, during any
2482	state of emergency as declared by the Governor and for a period
2483	of 1 year after the date of loss, the insured or claimant shall
2484	have 5 business days after the date on which the contract is
2485	executed to cancel a public adjuster's contract.
2486	(8)  It is an unfair and deceptive insurance trade practice
2487	pursuant to s. 626.9541 for a public adjuster or any other
2488	person to circulate or disseminate any advertisement,
2489	announcement, or statement containing any assertion,
2490	representation, or statement with respect to the business of
2491	insurance which is untrue, deceptive, or misleading.
2492	(9)  A public adjuster, a public adjuster apprentice, or
2493	any person or entity acting on behalf of a public adjuster or
2494	public adjuster apprentice may not give or offer to give a
2495	monetary loan or advance to a client or prospective client.
2496	(10)  A public adjuster, public adjuster apprentice, or any
2497	individual or entity acting on behalf of a public adjuster or
2498	public adjuster apprentice may not give or offer to give,
2499	directly or indirectly, any article of merchandise having a
2500	value in excess of $25 to any individual for the purpose of
2501	advertising or as an inducement to entering into a contract with
2502	a public adjuster.
2503	(11)(a)  If a public adjuster enters into a contract with
2504	an insured or claimant to reopen a claim or to file a
2505	supplemental claim that seeks additional payments for a claim
2506	that has been previously paid in part or in full or settled by
2507	the insurer, the public adjuster may not charge, agree to, or
2508	accept any compensation, payment, commission, fee, or other
2509	thing of value based on a previous settlement or previous claim
2510	payments by the insurer for the same cause of loss. The charge,
2511	compensation, payment, commission, fee, or other thing of value
2512	may be based only on the claim payments or settlement obtained
2513	through the work of the public adjuster after entering into the
2514	contract with the insured or claimant. The contracts described
2515	in this paragraph are not subject to the limitations in
2516	paragraph (b).
2517	(b)  A public adjuster may not charge, agree to, or accept
2518	any compensation, payment, commission, fee, or other thing of
2519	value in excess of:
2520	1.  Ten percent of the amount of insurance claim payments
2521	by the insurer for claims based on events that are the subject
2522	of a declaration of a state of emergency by the Governor. This
2523	provision applies to claims made during the period of 1 year
2524	after the declaration of emergency.
2525	2.  Twenty percent of the amount of all other insurance
2526	claim payments.
2527	(12)  Each public adjuster shall provide to the claimant or
2528	insured a written estimate of the loss to assist in the
2529	submission of a proof of loss or any other claim for payment of
2530	insurance proceeds. The public adjuster shall retain such
2531	written estimate for at least 5 years and shall make such
2532	estimate available to the claimant or insured and the department
2533	upon request.
2534	(13)  A public adjuster, public adjuster apprentice, or any
2535	person acting on behalf of a public adjuster or apprentice may
2536	not accept referrals of business from any person with whom the
2537	public adjuster conducts business if there is any form or manner
2538	of agreement to compensate the person, whether directly or
2539	indirectly, for referring business to the public adjuster. A
2540	public adjuster may not compensate any person, except for
2541	another public adjuster, whether directly or indirectly, for the
2542	principal purpose of referring business to the public adjuster.
2543
2544	The provisions of subsections (5)-(13) (5)-(12) apply only to
2545	residential property insurance policies and condominium
2546	association policies as defined in s. 718.111(11).
2547	Section 19.  Paragraph (e) of subsection (1) of section
2548	626.865, Florida Statutes, is amended to read:
2549	626.865  Public adjuster's qualifications, bond.--
2550	(1)  The department shall issue a license to an applicant
2551	for a public adjuster's license upon determining that the
2552	applicant has paid the applicable fees specified in s. 624.501
2553	and possesses the following qualifications:
2554	(e)  Has passed the required written examination.
2555	Section 20.  Section 626.8651, Florida Statutes, is amended
2556	to read:
2557	626.8651  Public adjuster apprentice license;
2558	qualifications.--
2559	(1)  The department shall issue a license as a public
2560	adjuster apprentice to an applicant who is:
2561	(a)  A natural person at least 18 years of age.
2562	(b)  A United States citizen or legal alien who possesses
2563	work authorization from the United States Bureau of Citizenship
2564	and Immigration Services and is a resident of this state.
2565	(c)  Trustworthy and has such business reputation as would
2566	reasonably ensure that the applicant will conduct business as a
2567	public adjuster apprentice fairly and in good faith and without
2568	detriment to the public.
2569	(2)  All applicable license fees, as prescribed in s.
2570	624.501, must be paid in full before issuance of the license.
2571	(3)  The applicant must have passed the required written
2572	examination before issuance of the license.
2573	(4)  At the time of application for license as a public
2574	adjuster apprentice, each applicant must have completed the
2575	training and received the Accredited Claims Adjuster designation
2576	which provides experience, training, and instruction concerning
2577	the adjusting of damages and losses under insurance contracts,
2578	other than life and annuity contracts, provides education on the
2579	terms and effects of the provisions of those types of insurance
2580	contracts, and provides knowledge of the laws of this state
2581	relating to such contracts as to enable and qualify him or her
2582	to engage in the business of a public adjuster apprentice fairly
2583	and without injury to the public or any member of the public
2584	with whom the applicant may conduct business as a public
2585	adjuster apprentice.
2586	(5)(3)  At the time of application for license as a public
2587	adjuster apprentice, the applicant shall file with the
2588	department a bond executed and issued by a surety insurer
2589	authorized to transact such business in this state in the amount
2590	of $50,000, conditioned upon the faithful performance of his or
2591	her duties as a public adjuster apprentice under the license for
2592	which the applicant has applied, and thereafter maintain the
2593	bond unimpaired throughout the existence of the license and for
2594	at least 1 year after termination of the license. The bond shall
2595	be in favor of the department and shall specifically authorize
2596	recovery by the department of the damages sustained in case the
2597	licensee commits fraud or unfair practices in connection with
2598	his or her business as a public adjuster apprentice. The
2599	aggregate liability of the surety for all such damages may not
2600	exceed the amount of the bond, and the bond may not be
2601	terminated by the issuing insurer unless written notice of at
2602	least 30 days is given to the licensee and filed with the
2603	department.
2604	(6)(4)  A public adjuster apprentice shall complete at a
2605	minimum 100 hours of employment per month for 12 months of
2606	employment under the supervision of a licensed and appointed
2607	all-lines public adjuster in order to qualify for licensure as a
2608	public adjuster. The department may adopt rules that establish
2609	standards for such employment requirements.
2610	(7)(5)  An appointing public adjusting firm shall maintain
2611	no more than 12 public adjuster apprentices simultaneously;
2612	however, a supervising public adjuster shall be responsible for
2613	no more than 3 public adjuster apprentices simultaneously and
2614	accountable for the acts of all a public adjuster apprentices
2615	that apprentice which are related to transacting business as a
2616	public adjuster apprentice.
2617	(8)(6)  An apprentice license is effective for 18 months
2618	unless the license expires due to lack of maintaining an
2619	appointment; is surrendered by the licensee; is terminated,
2620	suspended, or revoked by the department; or is canceled by the
2621	department upon issuance of a public adjuster license. The
2622	department may not issue a public adjuster apprentice license to
2623	any individual who has held such a license in this state within
2624	2 years after expiration, surrender, termination, revocation, or
2625	cancellation of the license.
2626	(9)(7)  After completing the requirements for employment as
2627	a public adjuster apprentice, the licensee may file an
2628	application for a public adjuster license. The applicant and
2629	supervising public adjuster or public adjusting firm must each
2630	file a sworn affidavit, on a form prescribed by the department,
2631	verifying that the employment of the public adjuster apprentice
2632	meets the requirements of this section.
2633	(10)(8)  In no event shall a public adjuster apprentice
2634	licensed under this section perform any of the functions for
2635	which a public adjuster's license is required after expiration
2636	of the public adjuster apprentice license without having
2637	obtained a public adjuster license.
2638	(11)(9)  A public adjuster apprentice has the same
2639	authority as the licensed public adjuster or public adjusting
2640	firm that employs the apprentice except that an apprentice may
2641	not execute contracts for the services of a public adjuster or
2642	public adjusting firm and may not solicit contracts for the
2643	services except under the direct supervision and guidance of the
2644	supervisory public adjuster. An individual may not be, act as,
2645	or hold himself or herself out to be a public adjuster
2646	apprentice unless the individual is licensed and holds a current
2647	appointment by a licensed public all-lines adjuster or a public
2648	adjusting firm that employs a licensed all-lines public
2649	adjuster.
2650	Section 21.  Subsection (7) is added to section 627.7011,
2651	Florida Statutes, to read:
2652	627.7011  Homeowners' policies; offer of replacement cost
2653	coverage and law and ordinance coverage.--
2654	(7)  This section does not prohibit an insurer from
2655	exercising its right to repair damaged property in compliance
2656	with its policy and s. 627.702(7).
2657	Section 22.  By February 1, 2010, the Office of Program
2658	Policy Analysis and Government Accountability shall submit a
2659	report to the Speaker of the House of Representatives, the
2660	President of the Senate, the Commissioner of Insurance, the
2661	Chief Financial Officer, and the Governor reviewing the laws
2662	governing public adjusters as defined in s. 626.854, Florida
2663	Statutes.  The report shall include a review of relevant
2664	Citizens Property Insurance Corporation claims and statistics
2665	involving public adjusters, public adjuster claims submission
2666	practices, and a review of the laws of this state and rules
2667	governing public adjusters. The report shall also review state
2668	laws governing public adjusters throughout the United States.
2669	The review shall encompass a review of both catastrophe and
2670	noncatastrophe related claims, with a specific focus on new and
2671	supplemental or reopened catastrophe claims originated in 2009
2672	which relate to hurricanes that occurred in 2004 and 2005. The
2673	study shall review the effects on consumers of the laws of this
2674	state relating to public adjusters.
2675	Section 23.  In the interest of full disclosure and
2676	transparency to real property insurance policy owners and since
2677	most real property insurance policies sold in this state are
2678	subject to assessments to make up for the funding deficiencies
2679	of the Citizens Property Insurance Corporation or the Florida
2680	Hurricane Catastrophe Fund, the following warning shall be
2681	printed in bold type of not less than 16 points and shall be
2682	displayed on the declarations page or on the renewal notice of
2683	every real property insurance policy sold or issued in this
2684	state that is or may be subject to assessment by the Citizens
2685	Property Insurance Corporation or the Florida Hurricane
2686	Catastrophe Fund:
2687
2688	WARNING
2689	The premium you are about to pay may NOT be the full cost
2690	of this insurance policy. If a hurricane strikes Florida,
2691	you may be forced to pay additional moneys to offset the
2692	inability of the state-owned Citizens Property Insurance
2693	Corporation or the Florida Hurricane Catastrophe Fund to
2694	pay claims resulting from the losses due to the
2695	hurricane.
2696
2697	Section 24.  Paragraph (o) of subsection (1) of section
2698	626.9541, Florida Statutes, is amended to read:
2699	626.9541  Unfair methods of competition and unfair or
2700	deceptive acts or practices defined.--
2701	(1)  UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
2702	ACTS.--The following are defined as unfair methods of
2703	competition and unfair or deceptive acts or practices:
2704	(o)  Illegal dealings in premiums; excess or reduced
2705	charges for insurance.--
2706	1.  Knowingly collecting any sum as a premium or charge for
2707	insurance, which is not then provided, or is not in due course
2708	to be provided, subject to acceptance of the risk by the
2709	insurer, by an insurance policy issued by an insurer as
2710	permitted by this code.
2711	2.  Knowingly collecting as a premium or charge for
2712	insurance any sum in excess of or less than the premium or
2713	charge applicable to such insurance, in accordance with the
2714	applicable classifications and rates as filed with and approved
2715	by the office, and as specified in the policy; or, in cases when
2716	classifications, premiums, or rates are not required by this
2717	code to be so filed and approved, premiums and charges collected
2718	from a Florida resident in excess of or less than those
2719	specified in the policy and as fixed by the insurer. This
2720	provision shall not be deemed to prohibit the charging and
2721	collection, by surplus lines agents licensed under part VIII of
2722	this chapter, of the amount of applicable state and federal
2723	taxes, or fees as authorized by s. 626.916(4), in addition to
2724	the premium required by the insurer or the charging and
2725	collection, by licensed agents, of the exact amount of any
2726	discount or other such fee charged by a credit card facility in
2727	connection with the use of a credit card, as authorized by
2728	subparagraph (q)3., in addition to the premium required by the
2729	insurer. This subparagraph shall not be construed to prohibit
2730	collection of a premium for a universal life or a variable or
2731	indeterminate value insurance policy made in accordance with the
2732	terms of the contract.
2733	3.a.  Imposing or requesting an additional premium for a
2734	policy of motor vehicle liability, personal injury protection,
2735	medical payment, or collision insurance or any combination
2736	thereof or refusing to renew the policy solely because the
2737	insured was involved in a motor vehicle accident unless the
2738	insurer's file contains information from which the insurer in
2739	good faith determines that the insured was substantially at
2740	fault in the accident.
2741	b.  An insurer which imposes and collects such a surcharge
2742	or which refuses to renew such policy shall, in conjunction with
2743	the notice of premium due or notice of nonrenewal, notify the
2744	named insured that he or she is entitled to reimbursement of
2745	such amount or renewal of the policy under the conditions listed
2746	below and will subsequently reimburse him or her or renew the
2747	policy, if the named insured demonstrates that the operator
2748	involved in the accident was:
2749	(I)  Lawfully parked;
2750	(II)  Reimbursed by, or on behalf of, a person responsible
2751	for the accident or has a judgment against such person;
2752	(III)  Struck in the rear by another vehicle headed in the
2753	same direction and was not convicted of a moving traffic
2754	violation in connection with the accident;
2755	(IV)  Hit by a "hit-and-run" driver, if the accident was
2756	reported to the proper authorities within 24 hours after
2757	discovering the accident;
2758	(V)  Not convicted of a moving traffic violation in
2759	connection with the accident, but the operator of the other
2760	automobile involved in such accident was convicted of a moving
2761	traffic violation;
2762	(VI)  Finally adjudicated not to be liable by a court of
2763	competent jurisdiction;
2764	(VII)  In receipt of a traffic citation which was dismissed
2765	or nolle prossed; or
2766	(VIII)  Not at fault as evidenced by a written statement
2767	from the insured establishing facts demonstrating lack of fault
2768	which are not rebutted by information in the insurer's file from
2769	which the insurer in good faith determines that the insured was
2770	substantially at fault.
2771	c.  In addition to the other provisions of this
2772	subparagraph, an insurer may not fail to renew a policy if the
2773	insured has had only one accident in which he or she was at
2774	fault within the current 3-year period. However, an insurer may
2775	nonrenew a policy for reasons other than accidents in accordance
2776	with s. 627.728. This subparagraph does not prohibit nonrenewal
2777	of a policy under which the insured has had three or more
2778	accidents, regardless of fault, during the most recent 3-year
2779	period.
2780	4.  Imposing or requesting an additional premium for, or
2781	refusing to renew, a policy for motor vehicle insurance solely
2782	because the insured committed a noncriminal traffic infraction
2783	as described in s. 318.14 unless the infraction is:
2784	a.  A second infraction committed within an 18-month
2785	period, or a third or subsequent infraction committed within a
2786	36-month period.
2787	b.  A violation of s. 316.183, when such violation is a
2788	result of exceeding the lawful speed limit by more than 15 miles
2789	per hour.
2790	5.  Upon the request of the insured, the insurer and
2791	licensed agent shall supply to the insured the complete proof of
2792	fault or other criteria which justifies the additional charge or
2793	cancellation.
2794	6.  No insurer shall impose or request an additional
2795	premium for motor vehicle insurance, cancel or refuse to issue a
2796	policy, or refuse to renew a policy because the insured or the
2797	applicant is a handicapped or physically disabled person, so
2798	long as such handicap or physical disability does not
2799	substantially impair such person's mechanically assisted driving
2800	ability.
2801	7.  No insurer may cancel or otherwise terminate any
2802	insurance contract or coverage, or require execution of a
2803	consent to rate endorsement, during the stated policy term for
2804	the purpose of offering to issue, or issuing, a similar or
2805	identical contract or coverage to the same insured with the same
2806	exposure at a higher premium rate or continuing an existing
2807	contract or coverage with the same exposure at an increased
2808	premium.
2809	8.  No insurer may issue a nonrenewal notice on any
2810	insurance contract or coverage, or require execution of a
2811	consent to rate endorsement, for the purpose of offering to
2812	issue, or issuing, a similar or identical contract or coverage
2813	to the same insured at a higher premium rate or continuing an
2814	existing contract or coverage at an increased premium without
2815	meeting any applicable notice requirements.
2816	9.  No insurer shall, with respect to premiums charged for
2817	motor vehicle insurance, unfairly discriminate solely on the
2818	basis of age, sex, marital status, or scholastic achievement.
2819	10.  Imposing or requesting an additional premium for motor
2820	vehicle comprehensive or uninsured motorist coverage solely
2821	because the insured was involved in a motor vehicle accident or
2822	was convicted of a moving traffic violation.
2823	11.  No insurer shall cancel or issue a nonrenewal notice
2824	on any insurance policy or contract without complying with any
2825	applicable cancellation or nonrenewal provision required under
2826	the Florida Insurance Code.
2827	12.  No insurer shall impose or request an additional
2828	premium, cancel a policy, or issue a nonrenewal notice on any
2829	insurance policy or contract because of any traffic infraction
2830	when adjudication has been withheld and no points have been
2831	assessed pursuant to s. 318.14(9) and (10). However, this
2832	subparagraph does not apply to traffic infractions involving
2833	accidents in which the insurer has incurred a loss due to the
2834	fault of the insured.
2835	13.  Notwithstanding this paragraph, a licensed general
2836	lines agent may also collect a reasonable service charge, not to
2837	exceed $5, from the insured when the licensed general lines
2838	agent processes, as a convenience and accommodation to the
2839	insured, an installment payment from the insured to the
2840	insurance company or premium finance company when such payments
2841	can be made directly to the insurance company or premium finance
2842	company by the insured. In no case may an agent collect more
2843	than one service charge for any single payment, and a schedule
2844	of any such service charge must be prominently posted in the
2845	public area of the agency and also on the agency's website if a
2846	service charge is to be collected.
2847	Section 25.  Subsection (7) is added to section 624.46226,
2848	Florida Statutes, to read:
2849	624.46226  Public housing authorities self-insurance funds;
2850	exemption for taxation and assessments.--
2851	(7)  Reinsurance companies complying with s. 624.610 may
2852	issue coverage directly to a public housing authority self-
2853	insuring its liabilities under this section. A public housing
2854	authority purchasing reinsurance shall be considered an insurer
2855	for the sole purpose of entering into such reinsurance
2856	contracts. Contracts of reinsurance issued to public housing
2857	authorities self-insuring under this section shall receive the
2858	same tax treatment as reinsurance contracts issued to insurance
2859	companies. However, the purchase of reinsurance coverage by a
2860	public housing authority self-insuring under this section shall
2861	not be construed as authorization to otherwise act as an
2862	insurer.
2863	Section 26.  All rating agencies or rating services must
2864	clearly state in their public reports and ratings whether they
2865	allowed any reinsurance from the Florida Hurricane Catastrophe
2866	Fund to be counted as an asset of the rated entity.
2867	Section 27.  This act shall take effect upon becoming a
2868	law.

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