Florida Senate - 2021                      CS for CS for SB 1574
       
       
        
       By the Committees on Appropriations; and Banking and Insurance;
       and Senator Brandes
       
       
       
       
       576-04473-21                                          20211574c2
    1                        A bill to be entitled                      
    2         An act relating to Citizens Property Insurance
    3         Corporation; amending s. 627.021, F.S.; revising
    4         applicability; amending s. 627.351, F.S.; revising the
    5         method for determining the amounts of potential
    6         surcharges to be levied against policyholders under
    7         certain circumstances; defining the term “primary
    8         residence”; revising conditions for eligibility for
    9         coverage with the corporation to require a certain
   10         minimum premium; specifying a limit for agent
   11         commission rates; revising the application of annual
   12         rate increase limits to certain policies issued by the
   13         corporation; providing that eligible surplus lines
   14         insurers may participate, in the same manner and on
   15         the same terms as an authorized insurer, in
   16         depopulation, take-out, or keep-out programs relating
   17         to policies removed from Citizens Property Insurance
   18         Corporation; providing certain exceptions, conditions,
   19         and requirements relating to such participation by a
   20         surplus lines insurer in the corporation’s
   21         depopulation, take-out, or keep-out programs;
   22         providing thresholds for eligibility for coverage by
   23         the corporation for risks offered coverage from
   24         qualified surplus lines insurers; authorizing
   25         information from underwriting files and confidential
   26         claims files to be released by the corporation to
   27         specified entities considering writing or underwriting
   28         risks insured by the corporation under certain
   29         circumstances; specifying that only the corporation’s
   30         transfer of a policy file to an insurer, as opposed to
   31         the transfer of any file, changes the file’s public
   32         record status; making technical changes; amending s.
   33         627.3517, F.S.; making technical changes; amending s.
   34         627.3518, F.S., and reenacting paragraphs (6)(a) and
   35         (7)(a), relating to the Citizens Property Insurance
   36         Corporation policyholder eligibility clearinghouse
   37         program, to incorporate the amendments made to s.
   38         627.351, F.S., in references thereto; conforming
   39         provisions to changes made by the act; providing an
   40         effective date.
   41          
   42  Be It Enacted by the Legislature of the State of Florida:
   43  
   44         Section 1. Subsection (2) of section 627.021, Florida
   45  Statutes, is amended to read:
   46         627.021 Scope of this part.—
   47         (2) This part does not apply to:
   48         (a) Reinsurance, except joint reinsurance as provided in s.
   49  627.311.
   50         (b) Insurance against loss of or damage to aircraft, their
   51  hulls, accessories, or equipment, or against liability, other
   52  than workers’ compensation and employer’s liability, arising out
   53  of the ownership, maintenance, or use of aircraft.
   54         (c) Insurance of vessels or craft, their cargoes, marine
   55  builders’ risks, marine protection and indemnity, or other risks
   56  commonly insured under marine insurance policies.
   57         (d) Commercial inland marine insurance.
   58         (e) Except as may be specifically stated to apply, surplus
   59  lines insurance placed under the provisions of ss. 626.913
   60  626.937.
   61         Section 2. Paragraphs (b), (c), (n), (q), and (x) of
   62  subsection (6) of section 627.351, Florida Statutes, are amended
   63  to read:
   64         627.351 Insurance risk apportionment plans.—
   65         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
   66         (b)1. All insurers authorized to write one or more subject
   67  lines of business in this state are subject to assessment by the
   68  corporation and, for the purposes of this subsection, are
   69  referred to collectively as “assessable insurers.” Insurers
   70  writing one or more subject lines of business in this state
   71  pursuant to part VIII of chapter 626 are not assessable
   72  insurers; however, insureds who procure one or more subject
   73  lines of business in this state pursuant to part VIII of chapter
   74  626 are subject to assessment by the corporation and are
   75  referred to collectively as “assessable insureds.” An insurer’s
   76  assessment liability begins on the first day of the calendar
   77  year following the year in which the insurer was issued a
   78  certificate of authority to transact insurance for subject lines
   79  of business in this state and terminates 1 year after the end of
   80  the first calendar year during which the insurer no longer holds
   81  a certificate of authority to transact insurance for subject
   82  lines of business in this state.
   83         2.a. All revenues, assets, liabilities, losses, and
   84  expenses of the corporation shall be divided into three separate
   85  accounts as follows:
   86         (I) A personal lines account for personal residential
   87  policies issued by the corporation which provides comprehensive,
   88  multiperil coverage on risks that are not located in areas
   89  eligible for coverage by the Florida Windstorm Underwriting
   90  Association as those areas were defined on January 1, 2002, and
   91  for policies that do not provide coverage for the peril of wind
   92  on risks that are located in such areas;
   93         (II) A commercial lines account for commercial residential
   94  and commercial nonresidential policies issued by the corporation
   95  which provides coverage for basic property perils on risks that
   96  are not located in areas eligible for coverage by the Florida
   97  Windstorm Underwriting Association as those areas were defined
   98  on January 1, 2002, and for policies that do not provide
   99  coverage for the peril of wind on risks that are located in such
  100  areas; and
  101         (III) A coastal account for personal residential policies
  102  and commercial residential and commercial nonresidential
  103  property policies issued by the corporation which provides
  104  coverage for the peril of wind on risks that are located in
  105  areas eligible for coverage by the Florida Windstorm
  106  Underwriting Association as those areas were defined on January
  107  1, 2002. The corporation may offer policies that provide
  108  multiperil coverage and shall offer policies that provide
  109  coverage only for the peril of wind for risks located in areas
  110  eligible for coverage in the coastal account. Effective July 1,
  111  2014, the corporation shall cease offering new commercial
  112  residential policies providing multiperil coverage and shall
  113  instead continue to offer commercial residential wind-only
  114  policies, and may offer commercial residential policies
  115  excluding wind. The corporation may, however, continue to renew
  116  a commercial residential multiperil policy on a building that is
  117  insured by the corporation on June 30, 2014, under a multiperil
  118  policy. In issuing multiperil coverage, the corporation may use
  119  its approved policy forms and rates for the personal lines
  120  account. An applicant or insured who is eligible to purchase a
  121  multiperil policy from the corporation may purchase a multiperil
  122  policy from an authorized insurer without prejudice to the
  123  applicant’s or insured’s eligibility to prospectively purchase a
  124  policy that provides coverage only for the peril of wind from
  125  the corporation. An applicant or insured who is eligible for a
  126  corporation policy that provides coverage only for the peril of
  127  wind may elect to purchase or retain such policy and also
  128  purchase or retain coverage excluding wind from an authorized
  129  insurer without prejudice to the applicant’s or insured’s
  130  eligibility to prospectively purchase a policy that provides
  131  multiperil coverage from the corporation. It is the goal of the
  132  Legislature that there be an overall average savings of 10
  133  percent or more for a policyholder who currently has a wind-only
  134  policy with the corporation, and an ex-wind policy with a
  135  voluntary insurer or the corporation, and who obtains a
  136  multiperil policy from the corporation. It is the intent of the
  137  Legislature that the offer of multiperil coverage in the coastal
  138  account be made and implemented in a manner that does not
  139  adversely affect the tax-exempt status of the corporation or
  140  creditworthiness of or security for currently outstanding
  141  financing obligations or credit facilities of the coastal
  142  account, the personal lines account, or the commercial lines
  143  account. The coastal account must also include quota share
  144  primary insurance under subparagraph (c)2. The area eligible for
  145  coverage under the coastal account also includes the area within
  146  Port Canaveral, which is bordered on the south by the City of
  147  Cape Canaveral, bordered on the west by the Banana River, and
  148  bordered on the north by Federal Government property.
  149         b. The three separate accounts must be maintained as long
  150  as financing obligations entered into by the Florida Windstorm
  151  Underwriting Association or Residential Property and Casualty
  152  Joint Underwriting Association are outstanding, in accordance
  153  with the terms of the corresponding financing documents. If the
  154  financing obligations are no longer outstanding, the corporation
  155  may use a single account for all revenues, assets, liabilities,
  156  losses, and expenses of the corporation. Consistent with this
  157  subparagraph and prudent investment policies that minimize the
  158  cost of carrying debt, the board shall exercise its best efforts
  159  to retire existing debt or obtain the approval of necessary
  160  parties to amend the terms of existing debt, so as to structure
  161  the most efficient plan for consolidating the three separate
  162  accounts into a single account.
  163         c. Creditors of the Residential Property and Casualty Joint
  164  Underwriting Association and the accounts specified in sub-sub
  165  subparagraphs a.(I) and (II) may have a claim against, and
  166  recourse to, those accounts and no claim against, or recourse
  167  to, the account referred to in sub-sub-subparagraph a.(III).
  168  Creditors of the Florida Windstorm Underwriting Association have
  169  a claim against, and recourse to, the account referred to in
  170  sub-sub-subparagraph a.(III) and no claim against, or recourse
  171  to, the accounts referred to in sub-sub-subparagraphs a.(I) and
  172  (II).
  173         d. Revenues, assets, liabilities, losses, and expenses not
  174  attributable to particular accounts shall be prorated among the
  175  accounts.
  176         e. The Legislature finds that the revenues of the
  177  corporation are revenues that are necessary to meet the
  178  requirements set forth in documents authorizing the issuance of
  179  bonds under this subsection.
  180         f. The income of the corporation may not inure to the
  181  benefit of any private person.
  182         3. With respect to a deficit in an account:
  183         a. After accounting for the Citizens policyholder surcharge
  184  imposed under sub-subparagraph i., if the remaining projected
  185  deficit incurred in the coastal account in a particular calendar
  186  year:
  187         (I) Is not greater than 2 percent of the aggregate
  188  statewide direct written premium for the subject lines of
  189  business for the prior calendar year, the entire deficit shall
  190  be recovered through regular assessments of assessable insurers
  191  under paragraph (q) and assessable insureds.
  192         (II) Exceeds 2 percent of the aggregate statewide direct
  193  written premium for the subject lines of business for the prior
  194  calendar year, the corporation shall levy regular assessments on
  195  assessable insurers under paragraph (q) and on assessable
  196  insureds in an amount equal to the greater of 2 percent of the
  197  projected deficit or 2 percent of the aggregate statewide direct
  198  written premium for the subject lines of business for the prior
  199  calendar year. Any remaining projected deficit shall be
  200  recovered through emergency assessments under sub-subparagraph
  201  d.
  202         b. Each assessable insurer’s share of the amount being
  203  assessed under sub-subparagraph a. must be in the proportion
  204  that the assessable insurer’s direct written premium for the
  205  subject lines of business for the year preceding the assessment
  206  bears to the aggregate statewide direct written premium for the
  207  subject lines of business for that year. The assessment
  208  percentage applicable to each assessable insured is the ratio of
  209  the amount being assessed under sub-subparagraph a. to the
  210  aggregate statewide direct written premium for the subject lines
  211  of business for the prior year. Assessments levied by the
  212  corporation on assessable insurers under sub-subparagraph a.
  213  must be paid as required by the corporation’s plan of operation
  214  and paragraph (q). Assessments levied by the corporation on
  215  assessable insureds under sub-subparagraph a. shall be collected
  216  by the surplus lines agent at the time the surplus lines agent
  217  collects the surplus lines tax required by s. 626.932, and paid
  218  to the Florida Surplus Lines Service Office at the time the
  219  surplus lines agent pays the surplus lines tax to that office.
  220  Upon receipt of regular assessments from surplus lines agents,
  221  the Florida Surplus Lines Service Office shall transfer the
  222  assessments directly to the corporation as determined by the
  223  corporation.
  224         c. After accounting for the Citizens policyholder surcharge
  225  imposed under sub-subparagraph i., the remaining projected
  226  deficits in the personal lines account and in the commercial
  227  lines account in a particular calendar year shall be recovered
  228  through emergency assessments under sub-subparagraph d.
  229         d. Upon a determination by the board of governors that a
  230  projected deficit in an account exceeds the amount that is
  231  expected to be recovered through regular assessments under sub
  232  subparagraph a., plus the amount that is expected to be
  233  recovered through surcharges under sub-subparagraph i., the
  234  board, after verification by the office, shall levy emergency
  235  assessments for as many years as necessary to cover the
  236  deficits, to be collected by assessable insurers and the
  237  corporation and collected from assessable insureds upon issuance
  238  or renewal of policies for subject lines of business, excluding
  239  National Flood Insurance policies. The amount collected in a
  240  particular year must be a uniform percentage of that year’s
  241  direct written premium for subject lines of business and all
  242  accounts of the corporation, excluding National Flood Insurance
  243  Program policy premiums, as annually determined by the board and
  244  verified by the office. The office shall verify the arithmetic
  245  calculations involved in the board’s determination within 30
  246  days after receipt of the information on which the determination
  247  was based. The office shall notify assessable insurers and the
  248  Florida Surplus Lines Service Office of the date on which
  249  assessable insurers shall begin to collect and assessable
  250  insureds shall begin to pay such assessment. The date must be at
  251  least 90 days after the date the corporation levies emergency
  252  assessments pursuant to this sub-subparagraph. Notwithstanding
  253  any other provision of law, the corporation and each assessable
  254  insurer that writes subject lines of business shall collect
  255  emergency assessments from its policyholders without such
  256  obligation being affected by any credit, limitation, exemption,
  257  or deferment. Emergency assessments levied by the corporation on
  258  assessable insureds shall be collected by the surplus lines
  259  agent at the time the surplus lines agent collects the surplus
  260  lines tax required by s. 626.932 and paid to the Florida Surplus
  261  Lines Service Office at the time the surplus lines agent pays
  262  the surplus lines tax to that office. The emergency assessments
  263  collected shall be transferred directly to the corporation on a
  264  periodic basis as determined by the corporation and held by the
  265  corporation solely in the applicable account. The aggregate
  266  amount of emergency assessments levied for an account in any
  267  calendar year may be less than but may not exceed the greater of
  268  10 percent of the amount needed to cover the deficit, plus
  269  interest, fees, commissions, required reserves, and other costs
  270  associated with financing the original deficit, or 10 percent of
  271  the aggregate statewide direct written premium for subject lines
  272  of business and all accounts of the corporation for the prior
  273  year, plus interest, fees, commissions, required reserves, and
  274  other costs associated with financing the deficit.
  275         e. The corporation may pledge the proceeds of assessments,
  276  projected recoveries from the Florida Hurricane Catastrophe
  277  Fund, other insurance and reinsurance recoverables, policyholder
  278  surcharges and other surcharges, and other funds available to
  279  the corporation as the source of revenue for and to secure bonds
  280  issued under paragraph (q), bonds or other indebtedness issued
  281  under subparagraph (c)3., or lines of credit or other financing
  282  mechanisms issued or created under this subsection, or to retire
  283  any other debt incurred as a result of deficits or events giving
  284  rise to deficits, or in any other way that the board determines
  285  will efficiently recover such deficits. The purpose of the lines
  286  of credit or other financing mechanisms is to provide additional
  287  resources to assist the corporation in covering claims and
  288  expenses attributable to a catastrophe. As used in this
  289  subsection, the term “assessments” includes regular assessments
  290  under sub-subparagraph a. or subparagraph (q)1. and emergency
  291  assessments under sub-subparagraph d. Emergency assessments
  292  collected under sub-subparagraph d. are not part of an insurer’s
  293  rates, are not premium, and are not subject to premium tax,
  294  fees, or commissions; however, failure to pay the emergency
  295  assessment shall be treated as failure to pay premium. The
  296  emergency assessments shall continue as long as any bonds issued
  297  or other indebtedness incurred with respect to a deficit for
  298  which the assessment was imposed remain outstanding, unless
  299  adequate provision has been made for the payment of such bonds
  300  or other indebtedness pursuant to the documents governing such
  301  bonds or indebtedness.
  302         f. As used in this subsection for purposes of any deficit
  303  incurred on or after January 25, 2007, the term “subject lines
  304  of business” means insurance written by assessable insurers or
  305  procured by assessable insureds for all property and casualty
  306  lines of business in this state, but not including workers’
  307  compensation or medical malpractice. As used in this sub
  308  subparagraph, the term “property and casualty lines of business”
  309  includes all lines of business identified on Form 2, Exhibit of
  310  Premiums and Losses, in the annual statement required of
  311  authorized insurers under s. 624.424 and any rule adopted under
  312  this section, except for those lines identified as accident and
  313  health insurance and except for policies written under the
  314  National Flood Insurance Program or the Federal Crop Insurance
  315  Program. For purposes of this sub-subparagraph, the term
  316  “workers’ compensation” includes both workers’ compensation
  317  insurance and excess workers’ compensation insurance.
  318         g. The Florida Surplus Lines Service Office shall determine
  319  annually the aggregate statewide written premium in subject
  320  lines of business procured by assessable insureds and report
  321  that information to the corporation in a form and at a time the
  322  corporation specifies to ensure that the corporation can meet
  323  the requirements of this subsection and the corporation’s
  324  financing obligations.
  325         h. The Florida Surplus Lines Service Office shall verify
  326  the proper application by surplus lines agents of assessment
  327  percentages for regular assessments and emergency assessments
  328  levied under this subparagraph on assessable insureds and assist
  329  the corporation in ensuring the accurate, timely collection and
  330  payment of assessments by surplus lines agents as required by
  331  the corporation.
  332         i. Upon determination by the board of governors that an
  333  account has a projected deficit, the board shall levy a Citizens
  334  policyholder surcharge against all policyholders of the
  335  corporation.
  336         (I) The surcharge shall be levied as a uniform percentage
  337  of the premium for the policy of up to 15 percent of such
  338  premium, which funds shall be used to offset the deficit, as
  339  follows:
  340         (A)If the total number of policyholders of the corporation
  341  is less than 1 million, a surcharge of 15 percent of the premium
  342  shall be levied.
  343         (B)If the total number of policyholders of the corporation
  344  is at least 1 million but less than 1.5 million policyholders, a
  345  surcharge of 20 percent of the premium shall be levied.
  346         (C)If the total number of policyholders of the corporation
  347  is at least 1.5 million, a surcharge of 25 percent of the
  348  premium shall be levied.
  349         (II) The surcharge is payable upon cancellation or
  350  termination of the policy, upon renewal of the policy, or upon
  351  issuance of a new policy by the corporation within the first 12
  352  months after the date of the levy or the period of time
  353  necessary to fully collect the surcharge amount.
  354         (III) The corporation may not levy any regular assessments
  355  under paragraph (q) pursuant to sub-subparagraph a. or sub
  356  subparagraph b. with respect to a particular year’s deficit
  357  until the corporation has first levied the full amount of the
  358  surcharge authorized by this sub-subparagraph.
  359         (IV) The surcharge is not considered premium and is not
  360  subject to commissions, fees, or premium taxes. However, failure
  361  to pay the surcharge shall be treated as failure to pay premium.
  362         j. If the amount of any assessments or surcharges collected
  363  from corporation policyholders, assessable insurers or their
  364  policyholders, or assessable insureds exceeds the amount of the
  365  deficits, such excess amounts shall be remitted to and retained
  366  by the corporation in a reserve to be used by the corporation,
  367  as determined by the board of governors and approved by the
  368  office, to pay claims or reduce any past, present, or future
  369  plan-year deficits or to reduce outstanding debt.
  370         (c) The corporation’s plan of operation:
  371         1. Must provide for adoption of residential property and
  372  casualty insurance policy forms and commercial residential and
  373  nonresidential property insurance forms, which must be approved
  374  by the office before use. The corporation shall adopt the
  375  following policy forms:
  376         a. Standard personal lines policy forms that are
  377  comprehensive multiperil policies providing full coverage of a
  378  residential property equivalent to the coverage provided in the
  379  private insurance market under an HO-3, HO-4, or HO-6 policy.
  380         b. Basic personal lines policy forms that are policies
  381  similar to an HO-8 policy or a dwelling fire policy that provide
  382  coverage meeting the requirements of the secondary mortgage
  383  market, but which is more limited than the coverage under a
  384  standard policy.
  385         c. Commercial lines residential and nonresidential policy
  386  forms that are generally similar to the basic perils of full
  387  coverage obtainable for commercial residential structures and
  388  commercial nonresidential structures in the admitted voluntary
  389  market.
  390         d. Personal lines and commercial lines residential property
  391  insurance forms that cover the peril of wind only. The forms are
  392  applicable only to residential properties located in areas
  393  eligible for coverage under the coastal account referred to in
  394  sub-subparagraph (b)2.a.
  395         e. Commercial lines nonresidential property insurance forms
  396  that cover the peril of wind only. The forms are applicable only
  397  to nonresidential properties located in areas eligible for
  398  coverage under the coastal account referred to in sub
  399  subparagraph (b)2.a.
  400         f. The corporation may adopt variations of the policy forms
  401  listed in sub-subparagraphs a.-e. which contain more restrictive
  402  coverage.
  403         g. Effective January 1, 2013, the corporation shall offer a
  404  basic personal lines policy similar to an HO-8 policy with
  405  dwelling repair based on common construction materials and
  406  methods.
  407         2. Must provide that the corporation adopt a program in
  408  which the corporation and authorized insurers enter into quota
  409  share primary insurance agreements for hurricane coverage, as
  410  defined in s. 627.4025(2)(a), for eligible risks, and adopt
  411  property insurance forms for eligible risks which cover the
  412  peril of wind only.
  413         a. As used in this subsection, the term:
  414         (II)“Primary residence” means the dwelling that the
  415  insured has represented as their permanent home on the insurance
  416  application or otherwise to the corporation.
  417         (III)(I) “Quota share primary insurance” means an
  418  arrangement in which the primary hurricane coverage of an
  419  eligible risk is provided in specified percentages by the
  420  corporation and an authorized insurer. The corporation and
  421  authorized insurer are each solely responsible for a specified
  422  percentage of hurricane coverage of an eligible risk as set
  423  forth in a quota share primary insurance agreement between the
  424  corporation and an authorized insurer and the insurance
  425  contract. The responsibility of the corporation or authorized
  426  insurer to pay its specified percentage of hurricane losses of
  427  an eligible risk, as set forth in the agreement, may not be
  428  altered by the inability of the other party to pay its specified
  429  percentage of losses. Eligible risks that are provided hurricane
  430  coverage through a quota share primary insurance arrangement
  431  must be provided policy forms that set forth the obligations of
  432  the corporation and authorized insurer under the arrangement,
  433  clearly specify the percentages of quota share primary insurance
  434  provided by the corporation and authorized insurer, and
  435  conspicuously and clearly state that the authorized insurer and
  436  the corporation may not be held responsible beyond their
  437  specified percentage of coverage of hurricane losses.
  438         (I)(II) “Eligible risks” means personal lines residential
  439  and commercial lines residential risks that meet the
  440  underwriting criteria of the corporation and are located in
  441  areas that were eligible for coverage by the Florida Windstorm
  442  Underwriting Association on January 1, 2002.
  443         b. The corporation may enter into quota share primary
  444  insurance agreements with authorized insurers at corporation
  445  coverage levels of 90 percent and 50 percent.
  446         c. If the corporation determines that additional coverage
  447  levels are necessary to maximize participation in quota share
  448  primary insurance agreements by authorized insurers, the
  449  corporation may establish additional coverage levels. However,
  450  the corporation’s quota share primary insurance coverage level
  451  may not exceed 90 percent.
  452         d. Any quota share primary insurance agreement entered into
  453  between an authorized insurer and the corporation must provide
  454  for a uniform specified percentage of coverage of hurricane
  455  losses, by county or territory as set forth by the corporation
  456  board, for all eligible risks of the authorized insurer covered
  457  under the agreement.
  458         e. Any quota share primary insurance agreement entered into
  459  between an authorized insurer and the corporation is subject to
  460  review and approval by the office. However, such agreement shall
  461  be authorized only as to insurance contracts entered into
  462  between an authorized insurer and an insured who is already
  463  insured by the corporation for wind coverage.
  464         f. For all eligible risks covered under quota share primary
  465  insurance agreements, the exposure and coverage levels for both
  466  the corporation and authorized insurers shall be reported by the
  467  corporation to the Florida Hurricane Catastrophe Fund. For all
  468  policies of eligible risks covered under such agreements, the
  469  corporation and the authorized insurer must maintain complete
  470  and accurate records for the purpose of exposure and loss
  471  reimbursement audits as required by fund rules. The corporation
  472  and the authorized insurer shall each maintain duplicate copies
  473  of policy declaration pages and supporting claims documents.
  474         g. The corporation board shall establish in its plan of
  475  operation standards for quota share agreements which ensure that
  476  there is no discriminatory application among insurers as to the
  477  terms of the agreements, pricing of the agreements, incentive
  478  provisions if any, and consideration paid for servicing policies
  479  or adjusting claims.
  480         h. The quota share primary insurance agreement between the
  481  corporation and an authorized insurer must set forth the
  482  specific terms under which coverage is provided, including, but
  483  not limited to, the sale and servicing of policies issued under
  484  the agreement by the insurance agent of the authorized insurer
  485  producing the business, the reporting of information concerning
  486  eligible risks, the payment of premium to the corporation, and
  487  arrangements for the adjustment and payment of hurricane claims
  488  incurred on eligible risks by the claims adjuster and personnel
  489  of the authorized insurer. Entering into a quota sharing
  490  insurance agreement between the corporation and an authorized
  491  insurer is voluntary and at the discretion of the authorized
  492  insurer.
  493         3. May provide that the corporation may employ or otherwise
  494  contract with individuals or other entities to provide
  495  administrative or professional services that may be appropriate
  496  to effectuate the plan. The corporation may borrow funds by
  497  issuing bonds or by incurring other indebtedness, and shall have
  498  other powers reasonably necessary to effectuate the requirements
  499  of this subsection, including, without limitation, the power to
  500  issue bonds and incur other indebtedness in order to refinance
  501  outstanding bonds or other indebtedness. The corporation may
  502  seek judicial validation of its bonds or other indebtedness
  503  under chapter 75. The corporation may issue bonds or incur other
  504  indebtedness, or have bonds issued on its behalf by a unit of
  505  local government pursuant to subparagraph (q)2. in the absence
  506  of a hurricane or other weather-related event, upon a
  507  determination by the corporation, subject to approval by the
  508  office, that such action would enable it to efficiently meet the
  509  financial obligations of the corporation and that such
  510  financings are reasonably necessary to effectuate the
  511  requirements of this subsection. The corporation may take all
  512  actions needed to facilitate tax-free status for such bonds or
  513  indebtedness, including formation of trusts or other affiliated
  514  entities. The corporation may pledge assessments, projected
  515  recoveries from the Florida Hurricane Catastrophe Fund, other
  516  reinsurance recoverables, policyholder surcharges and other
  517  surcharges, and other funds available to the corporation as
  518  security for bonds or other indebtedness. In recognition of s.
  519  10, Art. I of the State Constitution, prohibiting the impairment
  520  of obligations of contracts, it is the intent of the Legislature
  521  that no action be taken whose purpose is to impair any bond
  522  indenture or financing agreement or any revenue source committed
  523  by contract to such bond or other indebtedness.
  524         4. Must require that the corporation operate subject to the
  525  supervision and approval of a board of governors consisting of
  526  nine individuals who are residents of this state and who are
  527  from different geographical areas of this the state, one of whom
  528  is appointed by the Governor and serves solely to advocate on
  529  behalf of the consumer. The appointment of a consumer
  530  representative by the Governor is deemed to be within the scope
  531  of the exemption provided in s. 112.313(7)(b) and is in addition
  532  to the appointments authorized under sub-subparagraph a.
  533         a. The Governor, the Chief Financial Officer, the President
  534  of the Senate, and the Speaker of the House of Representatives
  535  shall each appoint two members of the board. At least one of the
  536  two members appointed by each appointing officer must have
  537  demonstrated expertise in insurance and be deemed to be within
  538  the scope of the exemption provided in s. 112.313(7)(b). The
  539  Chief Financial Officer shall designate one of the appointees as
  540  chair. All board members serve at the pleasure of the appointing
  541  officer. All members of the board are subject to removal at will
  542  by the officers who appointed them. All board members, including
  543  the chair, must be appointed to serve for 3-year terms beginning
  544  annually on a date designated by the plan. However, for the
  545  first term beginning on or after July 1, 2009, each appointing
  546  officer shall appoint one member of the board for a 2-year term
  547  and one member for a 3-year term. A board vacancy shall be
  548  filled for the unexpired term by the appointing officer. The
  549  Chief Financial Officer shall appoint a technical advisory group
  550  to provide information and advice to the board in connection
  551  with the board’s duties under this subsection. The executive
  552  director and senior managers of the corporation shall be engaged
  553  by the board and serve at the pleasure of the board. Any
  554  executive director appointed on or after July 1, 2006, is
  555  subject to confirmation by the Senate. The executive director is
  556  responsible for employing other staff as the corporation may
  557  require, subject to review and concurrence by the board.
  558         b. The board shall create a Market Accountability Advisory
  559  Committee to assist the corporation in developing awareness of
  560  its rates and its customer and agent service levels in
  561  relationship to the voluntary market insurers writing similar
  562  coverage.
  563         (I) The members of the advisory committee consist of the
  564  following 11 persons, one of whom must be elected chair by the
  565  members of the committee: four representatives, one appointed by
  566  the Florida Association of Insurance Agents, one by the Florida
  567  Association of Insurance and Financial Advisors, one by the
  568  Professional Insurance Agents of Florida, and one by the Latin
  569  American Association of Insurance Agencies; three
  570  representatives appointed by the insurers with the three highest
  571  voluntary market share of residential property insurance
  572  business in this the state; one representative from the Office
  573  of Insurance Regulation; one consumer appointed by the board who
  574  is insured by the corporation at the time of appointment to the
  575  committee; one representative appointed by the Florida
  576  Association of Realtors; and one representative appointed by the
  577  Florida Bankers Association. All members shall be appointed to
  578  3-year terms and may serve for consecutive terms.
  579         (II) The committee shall report to the corporation at each
  580  board meeting on insurance market issues that which may include
  581  rates and rate competition with the voluntary market; service,
  582  including policy issuance, claims processing, and general
  583  responsiveness to policyholders, applicants, and agents; and
  584  matters relating to depopulation.
  585         5. Must provide a procedure for determining the eligibility
  586  of a risk for coverage, as follows:
  587         a. Subject to s. 627.3517, with respect to personal lines
  588  residential risks, if the risk is offered coverage from an
  589  authorized insurer at the insurer’s approved rate under a
  590  standard policy including wind coverage or, if consistent with
  591  the insurer’s underwriting rules as filed with the office, a
  592  basic policy including wind coverage, for a new application to
  593  the corporation for coverage, the risk is not eligible for any
  594  policy issued by the corporation unless the premium for coverage
  595  from the authorized insurer is more than 15 percent greater than
  596  the premium for comparable coverage from the corporation.
  597  Whenever an offer of coverage for a personal lines residential
  598  risk is received for a policyholder of the corporation at
  599  renewal from an authorized insurer, if the offer is equal to or
  600  less than the corporation’s renewal premium for comparable
  601  coverage, the risk is not eligible for coverage with the
  602  corporation unless the premium for comparable coverage from the
  603  authorized insurer is more than 15 percent greater than the
  604  premium under subparagraph (n)1. for personal residential
  605  properties that are not the insured’s primary residence. If the
  606  risk is not able to obtain such offer, the risk is eligible for
  607  a standard policy including wind coverage or a basic policy
  608  including wind coverage issued by the corporation; however, if
  609  the risk could not be insured under a standard policy including
  610  wind coverage regardless of market conditions, the risk is
  611  eligible for a basic policy including wind coverage unless
  612  rejected under subparagraph 8. However, a policyholder removed
  613  from the corporation through an assumption agreement remains
  614  eligible for coverage from the corporation until the end of the
  615  assumption period. The corporation shall determine the type of
  616  policy to be provided on the basis of objective standards
  617  specified in the underwriting manual and based on generally
  618  accepted underwriting practices.
  619         (I) If the risk accepts an offer of coverage through the
  620  market assistance plan or through a mechanism established by the
  621  corporation other than a plan established by s. 627.3518, before
  622  a policy is issued to the risk by the corporation or during the
  623  first 30 days of coverage by the corporation, and the producing
  624  agent who submitted the application to the plan or to the
  625  corporation is not currently appointed by the insurer, the
  626  insurer shall:
  627         (A) Pay to the producing agent of record of the policy for
  628  the first year, an amount that is the greater of the insurer’s
  629  usual and customary commission for the type of policy written or
  630  a fee equal to the usual and customary commission of the
  631  corporation; or
  632         (B) Offer to allow the producing agent of record of the
  633  policy to continue servicing the policy for at least 1 year and
  634  offer to pay the agent the greater of the insurer’s or the
  635  corporation’s usual and customary commission for the type of
  636  policy written.
  637  
  638  If the producing agent is unwilling or unable to accept
  639  appointment, the new insurer shall pay the agent in accordance
  640  with sub-sub-sub-subparagraph (A).
  641         (II) If the corporation enters into a contractual agreement
  642  for a take-out plan, the producing agent of record of the
  643  corporation policy is entitled to retain any unearned commission
  644  on the policy, and the insurer shall:
  645         (A) Pay to the producing agent of record, for the first
  646  year, an amount that is the greater of the insurer’s usual and
  647  customary commission for the type of policy written or a fee
  648  equal to the usual and customary commission of the corporation;
  649  or
  650         (B) Offer to allow the producing agent of record to
  651  continue servicing the policy for at least 1 year and offer to
  652  pay the agent the greater of the insurer’s or the corporation’s
  653  usual and customary commission for the type of policy written.
  654  
  655  If the producing agent is unwilling or unable to accept
  656  appointment, the new insurer shall pay the agent in accordance
  657  with sub-sub-sub-subparagraph (A).
  658         b. With respect to commercial lines residential risks, for
  659  a new application to the corporation for coverage, if the risk
  660  is offered coverage under a policy including wind coverage from
  661  an authorized insurer at its approved rate, the risk is not
  662  eligible for a policy issued by the corporation unless the
  663  premium for coverage from the authorized insurer is more than 15
  664  percent greater than the premium for comparable coverage from
  665  the corporation. Whenever an offer of coverage for a commercial
  666  lines residential risk is received for a policyholder of the
  667  corporation at renewal from an authorized insurer, if the offer
  668  is equal to or less than the corporation’s renewal premium for
  669  comparable coverage, the risk is not eligible for coverage with
  670  the corporation. If the risk is not able to obtain any such
  671  offer, the risk is eligible for a policy including wind coverage
  672  issued by the corporation. However, a policyholder removed from
  673  the corporation through an assumption agreement remains eligible
  674  for coverage from the corporation until the end of the
  675  assumption period.
  676         (I) If the risk accepts an offer of coverage through the
  677  market assistance plan or through a mechanism established by the
  678  corporation other than a plan established by s. 627.3518, before
  679  a policy is issued to the risk by the corporation or during the
  680  first 30 days of coverage by the corporation, and the producing
  681  agent who submitted the application to the plan or the
  682  corporation is not currently appointed by the insurer, the
  683  insurer shall:
  684         (A) Pay to the producing agent of record of the policy, for
  685  the first year, an amount that is the greater of the insurer’s
  686  usual and customary commission for the type of policy written or
  687  a fee equal to the usual and customary commission of the
  688  corporation; or
  689         (B) Offer to allow the producing agent of record of the
  690  policy to continue servicing the policy for at least 1 year and
  691  offer to pay the agent the greater of the insurer’s or the
  692  corporation’s usual and customary commission for the type of
  693  policy written.
  694  
  695  If the producing agent is unwilling or unable to accept
  696  appointment, the new insurer shall pay the agent in accordance
  697  with sub-sub-sub-subparagraph (A).
  698         (II) If the corporation enters into a contractual agreement
  699  for a take-out plan, the producing agent of record of the
  700  corporation policy is entitled to retain any unearned commission
  701  on the policy, and the insurer shall:
  702         (A) Pay to the producing agent of record, for the first
  703  year, an amount that is the greater of the insurer’s usual and
  704  customary commission for the type of policy written or a fee
  705  equal to the usual and customary commission of the corporation;
  706  or
  707         (B) Offer to allow the producing agent of record to
  708  continue servicing the policy for at least 1 year and offer to
  709  pay the agent the greater of the insurer’s or the corporation’s
  710  usual and customary commission for the type of policy written.
  711  
  712  If the producing agent is unwilling or unable to accept
  713  appointment, the new insurer shall pay the agent in accordance
  714  with sub-sub-sub-subparagraph (A).
  715         c. For purposes of determining comparable coverage under
  716  sub-subparagraphs a. and b., the comparison must be based on
  717  those forms and coverages that are reasonably comparable. The
  718  corporation may rely on a determination of comparable coverage
  719  and premium made by the producing agent who submits the
  720  application to the corporation, made in the agent’s capacity as
  721  the corporation’s agent. A comparison may be made solely of the
  722  premium with respect to the main building or structure only on
  723  the following basis: the same coverage A or other building
  724  limits; the same percentage hurricane deductible that applies on
  725  an annual basis or that applies to each hurricane for commercial
  726  residential property; the same percentage of ordinance and law
  727  coverage, if the same limit is offered by both the corporation
  728  and the authorized insurer; the same mitigation credits, to the
  729  extent the same types of credits are offered both by the
  730  corporation and the authorized insurer; the same method for loss
  731  payment, such as replacement cost or actual cash value, if the
  732  same method is offered both by the corporation and the
  733  authorized insurer in accordance with underwriting rules; and
  734  any other form or coverage that is reasonably comparable as
  735  determined by the board. If an application is submitted to the
  736  corporation for wind-only coverage in the coastal account, the
  737  premium for the corporation’s wind-only policy plus the premium
  738  for the ex-wind policy that is offered by an authorized insurer
  739  to the applicant must be compared to the premium for multiperil
  740  coverage offered by an authorized insurer, subject to the
  741  standards for comparison specified in this subparagraph. If the
  742  corporation or the applicant requests from the authorized
  743  insurer a breakdown of the premium of the offer by types of
  744  coverage so that a comparison may be made by the corporation or
  745  its agent and the authorized insurer refuses or is unable to
  746  provide such information, the corporation may treat the offer as
  747  not being an offer of coverage from an authorized insurer at the
  748  insurer’s approved rate.
  749         6. Must include rules for classifications of risks and
  750  rates.
  751         7. Must provide that if premium and investment income for
  752  an account attributable to a particular calendar year are in
  753  excess of projected losses and expenses for the account
  754  attributable to that year, such excess shall be held in surplus
  755  in the account. Such surplus must be available to defray
  756  deficits in that account as to future years and used for that
  757  purpose before assessing assessable insurers and assessable
  758  insureds as to any calendar year.
  759         8. Must provide objective criteria and procedures to be
  760  uniformly applied to all applicants in determining whether an
  761  individual risk is so hazardous as to be uninsurable. In making
  762  this determination and in establishing the criteria and
  763  procedures, the following must be considered:
  764         a. Whether the likelihood of a loss for the individual risk
  765  is substantially higher than for other risks of the same class;
  766  and
  767         b. Whether the uncertainty associated with the individual
  768  risk is such that an appropriate premium cannot be determined.
  769  
  770  The acceptance or rejection of a risk by the corporation shall
  771  be construed as the private placement of insurance, and the
  772  provisions of chapter 120 does do not apply.
  773         9. Must provide that the corporation make its best efforts
  774  to procure catastrophe reinsurance at reasonable rates, to cover
  775  its projected 100-year probable maximum loss as determined by
  776  the board of governors.
  777         10. The policies issued by the corporation must provide
  778  that if the corporation or the market assistance plan obtains an
  779  offer from an authorized insurer to cover the risk at its
  780  approved rates, the risk is no longer eligible for renewal
  781  through the corporation, except as otherwise provided in this
  782  subsection.
  783         11. Corporation policies and applications must include a
  784  notice that the corporation policy could, under this section, be
  785  replaced with a policy issued by an authorized insurer which
  786  does not provide coverage identical to the coverage provided by
  787  the corporation. The notice must also specify that acceptance of
  788  corporation coverage creates a conclusive presumption that the
  789  applicant or policyholder is aware of this potential.
  790         12. May establish, subject to approval by the office,
  791  different eligibility requirements and operational procedures
  792  for any line or type of coverage for any specified county or
  793  area if the board determines that such changes are justified due
  794  to the voluntary market being sufficiently stable and
  795  competitive in such area or for such line or type of coverage
  796  and that consumers who, in good faith, are unable to obtain
  797  insurance through the voluntary market through ordinary methods
  798  continue to have access to coverage from the corporation. If
  799  coverage is sought in connection with a real property transfer,
  800  the requirements and procedures may not provide an effective
  801  date of coverage later than the date of the closing of the
  802  transfer as established by the transferor, the transferee, and,
  803  if applicable, the lender.
  804         13. Must provide that, with respect to the coastal account,
  805  any assessable insurer with a surplus as to policyholders of $25
  806  million or less writing 25 percent or more of its total
  807  countrywide property insurance premiums in this state may
  808  petition the office, within the first 90 days of each calendar
  809  year, to qualify as a limited apportionment company. A regular
  810  assessment levied by the corporation on a limited apportionment
  811  company for a deficit incurred by the corporation for the
  812  coastal account may be paid to the corporation on a monthly
  813  basis as the assessments are collected by the limited
  814  apportionment company from its insureds, but a limited
  815  apportionment company must begin collecting the regular
  816  assessments not later than 90 days after the regular assessments
  817  are levied by the corporation, and the regular assessments must
  818  be paid in full within 15 months after being levied by the
  819  corporation. A limited apportionment company shall collect from
  820  its policyholders any emergency assessment imposed under sub
  821  subparagraph (b)3.d. The plan must provide that, if the office
  822  determines that any regular assessment will result in an
  823  impairment of the surplus of a limited apportionment company,
  824  the office may direct that all or part of such assessment be
  825  deferred as provided in subparagraph (q)4. However, an emergency
  826  assessment to be collected from policyholders under sub
  827  subparagraph (b)3.d. may not be limited or deferred.
  828         14. Must provide that the corporation appoint as its
  829  licensed agents only those agents who throughout such
  830  appointments also hold an appointment as defined in s. 626.015
  831  by an insurer who is authorized to write and is actually writing
  832  or renewing personal lines residential property coverage,
  833  commercial residential property coverage, or commercial
  834  nonresidential property coverage within this the state.
  835         15. Must provide a premium payment plan option to its
  836  policyholders which, at a minimum, allows for quarterly and
  837  semiannual payment of premiums. A monthly payment plan may, but
  838  is not required to, be offered.
  839         16. Must limit coverage on mobile homes or manufactured
  840  homes built before 1994 to actual cash value of the dwelling
  841  rather than replacement costs of the dwelling.
  842         17. Must provide coverage for manufactured or mobile home
  843  dwellings. Such coverage must also include the following
  844  attached structures:
  845         a. Screened enclosures that are aluminum framed or screened
  846  enclosures that are not covered by the same or substantially the
  847  same materials as those of the primary dwelling;
  848         b. Carports that are aluminum or carports that are not
  849  covered by the same or substantially the same materials as those
  850  of the primary dwelling; and
  851         c. Patios that have a roof covering that is constructed of
  852  materials that are not the same or substantially the same
  853  materials as those of the primary dwelling.
  854  
  855  The corporation shall make available a policy for mobile homes
  856  or manufactured homes for a minimum insured value of at least
  857  $3,000.
  858         18. May provide such limits of coverage as the board
  859  determines, consistent with the requirements of this subsection.
  860         19. May require commercial property to meet specified
  861  hurricane mitigation construction features as a condition of
  862  eligibility for coverage.
  863         20. Must provide that new or renewal policies issued by the
  864  corporation on or after January 1, 2012, which cover sinkhole
  865  loss do not include coverage for any loss to appurtenant
  866  structures, driveways, sidewalks, decks, or patios that are
  867  directly or indirectly caused by sinkhole activity. The
  868  corporation shall exclude such coverage using a notice of
  869  coverage change, which may be included with the policy renewal,
  870  and not by issuance of a notice of nonrenewal of the excluded
  871  coverage upon renewal of the current policy.
  872         21. As of January 1, 2012, must require that the agent
  873  obtain from an applicant for coverage from the corporation an
  874  acknowledgment signed by the applicant, which includes, at a
  875  minimum, the following statement:
  876  
  877                ACKNOWLEDGMENT OF POTENTIAL SURCHARGE              
  878                      AND ASSESSMENT LIABILITY:                    
  879  
  880         1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
  881  CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
  882  DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
  883  MY POLICY COULD BE SUBJECT TO SURCHARGES, WHICH WILL BE DUE AND
  884  PAYABLE UPON RENEWAL, CANCELLATION, OR TERMINATION OF THE
  885  POLICY, AND THAT THE SURCHARGES COULD BE AS HIGH AS 45 PERCENT
  886  OF MY PREMIUM, OR A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA
  887  LEGISLATURE.
  888         2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
  889  SURCHARGE, WHICH COULD BE AS HIGH AS 45 PERCENT OF MY PREMIUM,
  890  BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND THAT TO
  891  BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN
  892  PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR RENEWING COVERAGE
  893  WITH CITIZENS. I UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES
  894  ARE REGULATED AND APPROVED BY THE STATE.
  895         3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
  896  ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
  897  INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
  898  FLORIDA LEGISLATURE.
  899         4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
  900  CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
  901  STATE OF FLORIDA.
  902  
  903         a. The corporation shall maintain, in electronic format or
  904  otherwise, a copy of the applicant’s signed acknowledgment and
  905  provide a copy of the statement to the policyholder as part of
  906  the first renewal after the effective date of this subparagraph.
  907         b. The signed acknowledgment form creates a conclusive
  908  presumption that the policyholder understood and accepted his or
  909  her potential surcharge and assessment liability as a
  910  policyholder of the corporation.
  911         22.The corporation shall pay a producing agent of record a
  912  reasonable commission not to exceed the average of commissions
  913  paid in the preceding year by the 20 admitted insurers writing
  914  the greatest market share of property insurance in this state.
  915         (n)1. Rates for coverage provided by the corporation must
  916  be actuarially sound and subject to s. 627.062, except as
  917  otherwise provided in this paragraph. The corporation shall file
  918  its recommended rates with the office at least annually. The
  919  corporation shall provide any additional information regarding
  920  the rates which the office requires. The office shall consider
  921  the recommendations of the board and issue a final order
  922  establishing the rates for the corporation within 45 days after
  923  the recommended rates are filed. The corporation may not pursue
  924  an administrative challenge or judicial review of the final
  925  order of the office.
  926         2. In addition to the rates otherwise determined pursuant
  927  to this paragraph, the corporation shall impose and collect an
  928  amount equal to the premium tax provided in s. 624.509 to
  929  augment the financial resources of the corporation.
  930         3. After The public hurricane loss-projection model under
  931  s. 627.06281, if has been found to be accurate and reliable by
  932  the Florida Commission on Hurricane Loss Projection Methodology,
  933  the model shall be considered when establishing the windstorm
  934  portion of the corporation’s rates. The corporation may use the
  935  public model results in combination with the results of private
  936  models to calculate rates for the windstorm portion of the
  937  corporation’s rates. This subparagraph does not require or allow
  938  the corporation to adopt rates lower than the rates otherwise
  939  required or allowed by this paragraph.
  940         4. The rate filings for the corporation which were approved
  941  by the office and took effect January 1, 2007, are rescinded,
  942  except for those rates that were lowered. As soon as possible,
  943  the corporation shall begin using the lower rates that were in
  944  effect on December 31, 2006, and provide refunds to
  945  policyholders who paid higher rates as a result of that rate
  946  filing. The rates in effect on December 31, 2006, remain in
  947  effect for the 2007 and 2008 calendar years except for any rate
  948  change that results in a lower rate. The next rate change that
  949  may increase rates shall take effect pursuant to a new rate
  950  filing recommended by the corporation and established by the
  951  office, subject to this paragraph.
  952         5. Beginning on July 15, 2009, and annually thereafter, the
  953  corporation must make a recommended actuarially sound rate
  954  filing for each personal and commercial line of business it
  955  writes, to be effective no earlier than January 1, 2010.
  956         6. Beginning on or after January 1, 2022 January 1, 2010,
  957  and notwithstanding the board’s recommended rates and the
  958  office’s final order regarding the corporation’s filed rates
  959  under subparagraph 1., the corporation shall annually implement
  960  a rate increase which, except for sinkhole coverage, does not
  961  exceed 10 percent for any single policy renewed issued by the
  962  corporation covering a personal residential property that is
  963  used as the primary residence of the insured which has a
  964  dwelling replacement cost less than $700,000 or that is a single
  965  condominium unit that has a combined dwelling and contents
  966  replacement cost less than $700,000, excluding coverage changes
  967  and surcharges, if the policy was initially issued by the
  968  corporation before January 1, 2022.
  969         7. The corporation may also implement an increase to
  970  reflect the effect on the corporation of the cash buildup factor
  971  pursuant to s. 215.555(5)(b).
  972         8. The corporation’s implementation of rates as prescribed
  973  in subparagraph 6. shall cease for any line of business written
  974  by the corporation upon the corporation’s implementation of
  975  actuarially sound rates. Thereafter, the corporation shall
  976  annually make a recommended actuarially sound rate filing for
  977  each commercial and personal line of business the corporation
  978  writes.
  979         (q)1. The corporation shall certify to the office its needs
  980  for annual assessments as to a particular calendar year, and for
  981  any interim assessments that it deems to be necessary to sustain
  982  operations as to a particular year pending the receipt of annual
  983  assessments. Upon verification, the office shall approve such
  984  certification, and the corporation shall levy such annual or
  985  interim assessments. Such assessments shall be prorated as
  986  provided in paragraph (b). The corporation shall take all
  987  reasonable and prudent steps necessary to collect the amount of
  988  assessments due from each assessable insurer, including, if
  989  prudent, filing suit to collect the assessments, and the office
  990  may provide such assistance to the corporation it deems
  991  appropriate. If the corporation is unable to collect an
  992  assessment from any assessable insurer, the uncollected
  993  assessments shall be levied as an additional assessment against
  994  the assessable insurers and any assessable insurer required to
  995  pay an additional assessment as a result of such failure to pay
  996  shall have a cause of action against such nonpaying assessable
  997  insurer. Assessments shall be included as an appropriate factor
  998  in the making of rates. The failure of a surplus lines agent to
  999  collect and remit any regular or emergency assessment levied by
 1000  the corporation is considered to be a violation of s. 626.936
 1001  and subjects the surplus lines agent to the penalties provided
 1002  in that section.
 1003         2. The governing body of any unit of local government, any
 1004  residents of which are insured by the corporation, may issue
 1005  bonds as defined in s. 125.013 or s. 166.101 from time to time
 1006  to fund an assistance program, in conjunction with the
 1007  corporation, for the purpose of defraying deficits of the
 1008  corporation. In order to avoid needless and indiscriminate
 1009  proliferation, duplication, and fragmentation of such assistance
 1010  programs, any unit of local government, any residents of which
 1011  are insured by the corporation, may provide for the payment of
 1012  losses, regardless of whether or not the losses occurred within
 1013  or outside of the territorial jurisdiction of the local
 1014  government. Revenue bonds under this subparagraph may not be
 1015  issued until validated pursuant to chapter 75, unless a state of
 1016  emergency is declared by executive order or proclamation of the
 1017  Governor pursuant to s. 252.36 making such findings as are
 1018  necessary to determine that it is in the best interests of, and
 1019  necessary for, the protection of the public health, safety, and
 1020  general welfare of residents of this state and declaring it an
 1021  essential public purpose to permit certain municipalities or
 1022  counties to issue such bonds as will permit relief to claimants
 1023  and policyholders of the corporation. Any such unit of local
 1024  government may enter into such contracts with the corporation
 1025  and with any other entity created pursuant to this subsection as
 1026  are necessary to carry out this paragraph. Any bonds issued
 1027  under this subparagraph shall be payable from and secured by
 1028  moneys received by the corporation from emergency assessments
 1029  under sub-subparagraph (b)3.d., and assigned and pledged to or
 1030  on behalf of the unit of local government for the benefit of the
 1031  holders of such bonds. The funds, credit, property, and taxing
 1032  power of the state or of the unit of local government may shall
 1033  not be pledged for the payment of such bonds.
 1034         3.a. The corporation shall adopt one or more programs
 1035  subject to approval by the office for the reduction of both new
 1036  and renewal writings in the corporation. Beginning January 1,
 1037  2008, any program the corporation adopts for the payment of
 1038  bonuses to an insurer for each risk the insurer removes from the
 1039  corporation shall comply with s. 627.3511(2) and may not exceed
 1040  the amount referenced in s. 627.3511(2) for each risk removed.
 1041  The corporation may consider any prudent and not unfairly
 1042  discriminatory approach to reducing corporation writings, and
 1043  may adopt a credit against assessment liability or other
 1044  liability that provides an incentive for insurers to take risks
 1045  out of the corporation and to keep risks out of the corporation
 1046  by maintaining or increasing voluntary writings in counties or
 1047  areas in which corporation risks are highly concentrated and a
 1048  program to provide a formula under which an insurer voluntarily
 1049  taking risks out of the corporation by maintaining or increasing
 1050  voluntary writings will be relieved wholly or partially from
 1051  assessments under sub-subparagraph (b)3.a. However, any “take
 1052  out bonus” or payment to an insurer must be conditioned on the
 1053  property being insured for at least 5 years by the insurer,
 1054  unless canceled or nonrenewed by the policyholder. If the policy
 1055  is canceled or nonrenewed by the policyholder before the end of
 1056  the 5-year period, the amount of the take-out bonus must be
 1057  prorated for the time period the policy was insured. When the
 1058  corporation enters into a contractual agreement for a take-out
 1059  plan, the producing agent of record of the corporation policy is
 1060  entitled to retain any unearned commission on such policy, and
 1061  the insurer shall either:
 1062         (I) Pay to the producing agent of record of the policy, for
 1063  the first year, an amount which is the greater of the insurer’s
 1064  usual and customary commission for the type of policy written or
 1065  a policy fee equal to the usual and customary commission of the
 1066  corporation; or
 1067         (II) Offer to allow the producing agent of record of the
 1068  policy to continue servicing the policy for a period of not less
 1069  than 1 year and offer to pay the agent the insurer’s usual and
 1070  customary commission for the type of policy written. If the
 1071  producing agent is unwilling or unable to accept appointment by
 1072  the new insurer, the new insurer shall pay the agent in
 1073  accordance with sub-sub-subparagraph (I).
 1074         b. Any credit or exemption from regular assessments adopted
 1075  under this subparagraph shall last no longer than the 3 years
 1076  following the cancellation or expiration of the policy by the
 1077  corporation. With the approval of the office, the board may
 1078  extend such credits for an additional year if the insurer
 1079  guarantees an additional year of renewability for all policies
 1080  removed from the corporation, or for 2 additional years if the
 1081  insurer guarantees 2 additional years of renewability for all
 1082  policies so removed.
 1083         c. There shall be no credit, limitation, exemption, or
 1084  deferment from emergency assessments to be collected from
 1085  policyholders pursuant to sub-subparagraph (b)3.d.
 1086         d. Notwithstanding any other provision of law, for purposes
 1087  of a depopulation, take-out, or keep-out program adopted by the
 1088  corporation, including an initial or renewal offer of coverage
 1089  made to a policyholder removed from the corporation pursuant to
 1090  such program, an eligible surplus lines insurer may participate
 1091  in the program in the same manner and on the same terms as an
 1092  authorized insurer, except as provided under this sub
 1093  subparagraph.
 1094         (I) To qualify for participation, the surplus lines insurer
 1095  must first obtain approval from the office for its depopulation,
 1096  take-out, or keep-out plan and then comply with all of the
 1097  corporation’s requirements for the plan applicable to admitted
 1098  insurers and with all statutory provisions applicable to the
 1099  removal of policies from the corporation.
 1100         (II) In considering a surplus lines insurer’s request for
 1101  approval for its plan, the office shall determine that the
 1102  surplus lines insurer meets the following requirements:
 1103         (A) Maintains surplus of $50 million on a company or pooled
 1104  basis;
 1105         (B)Has a superior, excellent, exceptional, or equally
 1106  comparable financial strength rating by a rating agency
 1107  acceptable to the office;
 1108         (C) Maintains reserves, surplus, reinsurance, and
 1109  reinsurance equivalents sufficient to cover the insurer’s 100
 1110  year probable maximum hurricane loss at least twice in a single
 1111  hurricane season, and submits such reinsurance to the office to
 1112  review for purposes of the take-out;
 1113         (D) Provides prominent notice to the policyholder before
 1114  the assumption of the policy that surplus lines policies are not
 1115  provided coverage by the Florida Insurance Guaranty Association,
 1116  and an outline of any substantial differences in coverage
 1117  between the existing policy and the policy being offered to the
 1118  insured; and
 1119         (E) Provides policy coverage similar to that provided by
 1120  the corporation.
 1121         (III) To obtain approval for a plan, the surplus lines
 1122  insurer must file the following with the office:
 1123         (A) Information requested by the office to demonstrate
 1124  compliance with s. 624.404(3), including biographical
 1125  affidavits, fingerprints processed pursuant to s. 624.34, and
 1126  the results of criminal history records checks for officers and
 1127  directors of the insurer and its parent or holding company;
 1128         (B) A service-of-process consent and agreement form
 1129  executed by the insurer;
 1130         (C) Proof that the insurer has been an eligible or
 1131  authorized insurer for at least 3 years;
 1132         (D) A duly authenticated copy of the insurer’s current
 1133  audited financial statement, in English, expressing all monetary
 1134  values in United States dollars, at an exchange rate then
 1135  current and shown in the statement, in the case of statements
 1136  originally made in the currencies of other countries, and
 1137  including any additional information relative to the insurer as
 1138  the office may request;
 1139         (E) A complete certified copy of the latest official
 1140  financial statement required by the insurer’s domiciliary state,
 1141  if different from sub-sub-sub-subparagraph (D); and
 1142         (F) A copy of the United States trust account agreement, if
 1143  applicable.
 1144  
 1145  This sub-subparagraph does not subject any surplus lines insurer
 1146  to requirements in addition to part VIII of chapter 626. Surplus
 1147  lines brokers making an offer of coverage under this sub
 1148  subparagraph are not required to comply with s. 626.916(1)(a),
 1149  (b), (c), and (e).
 1150         (IV) Within 10 days after the date of assumption, the
 1151  surplus lines insurer assuming policies from the corporation
 1152  shall remit a special deposit equal to the unearned premium net
 1153  of unearned commissions on the assumed block of business to the
 1154  Bureau of Collateral Management within the Department of
 1155  Financial Services. The surplus lines insurer shall submit to
 1156  the office, along with the initial deposit, an accounting of the
 1157  policies assumed and the amount of unearned premium for such
 1158  policies and a sworn affidavit attesting to its accuracy by an
 1159  officer of the surplus lines insurer. Thereafter, the surplus
 1160  lines insurer shall make a filing within 10 days after each
 1161  calendar quarter attesting to the unearned premium in force for
 1162  the previous quarter on policies assumed from the corporation,
 1163  and shall submit additional funds with that filing if the
 1164  special deposit is insufficient to cover the unearned premium on
 1165  assumed policies, or shall receive a return of funds within 60
 1166  days if the special deposit exceeds the amount of unearned
 1167  premium required for assumed policies. The special deposit is an
 1168  asset of the surplus lines insurer which is held by the
 1169  department for the benefit of state policyholders of the surplus
 1170  lines insurer in the event of the insolvency of the surplus
 1171  lines insurer. If an order of liquidation is entered in any
 1172  state against the surplus lines insurer, the department may use
 1173  the special deposit for payment of unearned premium or policy
 1174  claims, return all or part of the deposit to the domiciliary
 1175  receiver, or use the funds in accordance with any action
 1176  authorized under part I of chapter 631 or in compliance with any
 1177  order of a court having jurisdiction over the insolvency.
 1178         (V) Surplus lines brokers representing a surplus lines
 1179  insurer on a take-out program shall obtain confirmation, in
 1180  written or e-mail form, from each producing agent in advance
 1181  stating that the agent is willing to participate in the take-out
 1182  program with the surplus lines insurer engaging in the take-out
 1183  program. The take-out program is also subject to s. 627.3517. If
 1184  a policyholder is selected for removal from the corporation by a
 1185  surplus lines insurer and an authorized insurer, the corporation
 1186  shall give the offer of coverage from the authorized insurer
 1187  priority.
 1188         (VI)(A)When offered comparable coverage from a qualified
 1189  surplus lines insurer no greater than 15 percent higher than the
 1190  premium charged by the corporation, a risk that has a dwelling
 1191  replacement cost of $700,000 or more or a single condominium
 1192  unit that has a combined dwelling and contents replacement cost
 1193  of $700,000 or more is not eligible for coverage by the
 1194  corporation.
 1195         (B)When offered coverage from a qualified surplus lines
 1196  insurer, a risk that has a dwelling replacement cost below
 1197  $700,000 or a single condominium unit that has a combined
 1198  dwelling and contents replacement cost below $700,000 remains
 1199  eligible for coverage by the corporation.
 1200         4. The plan shall provide for the deferment, in whole or in
 1201  part, of the assessment of an assessable insurer, other than an
 1202  emergency assessment collected from policyholders pursuant to
 1203  sub-subparagraph (b)3.d., if the office finds that payment of
 1204  the assessment would endanger or impair the solvency of the
 1205  insurer. In the event an assessment against an assessable
 1206  insurer is deferred in whole or in part, the amount by which
 1207  such assessment is deferred may be assessed against the other
 1208  assessable insurers in a manner consistent with the basis for
 1209  assessments set forth in paragraph (b).
 1210         5. Effective July 1, 2007, in order to evaluate the costs
 1211  and benefits of approved take-out plans, if the corporation pays
 1212  a bonus or other payment to an insurer for an approved take-out
 1213  plan, it shall maintain a record of the address or such other
 1214  identifying information on the property or risk removed in order
 1215  to track if and when the property or risk is later insured by
 1216  the corporation.
 1217         6. Any policy taken out, assumed, or removed from the
 1218  corporation is, as of the effective date of the take-out,
 1219  assumption, or removal, direct insurance issued by the insurer
 1220  and not by the corporation, even if the corporation continues to
 1221  service the policies. This subparagraph applies to policies of
 1222  the corporation and not policies taken out, assumed, or removed
 1223  from any other entity.
 1224         7. For a policy taken out, assumed, or removed from the
 1225  corporation, the insurer may, for a period of no more than 3
 1226  years, continue to use any of the corporation’s policy forms or
 1227  endorsements that apply to the policy taken out, removed, or
 1228  assumed without obtaining approval from the office for use of
 1229  such policy form or endorsement.
 1230         (x)1. The following records of the corporation are
 1231  confidential and exempt from the provisions of s. 119.07(1) and
 1232  s. 24(a), Art. I of the State Constitution:
 1233         a. Underwriting files, except that a policyholder or an
 1234  applicant shall have access to his or her own underwriting
 1235  files. Confidential and exempt underwriting file records may
 1236  also be released to other governmental agencies upon written
 1237  request and demonstration of need; such records held by the
 1238  receiving agency remain confidential and exempt as provided
 1239  herein.
 1240         b. Claims files, until termination of all litigation and
 1241  settlement of all claims arising out of the same incident,
 1242  although portions of the claims files may remain exempt, as
 1243  otherwise provided by law. Confidential and exempt claims file
 1244  records may be released to other governmental agencies upon
 1245  written request and demonstration of need; such records held by
 1246  the receiving agency remain confidential and exempt as provided
 1247  herein.
 1248         c. Records obtained or generated by an internal auditor
 1249  pursuant to a routine audit, until the audit is completed, or if
 1250  the audit is conducted as part of an investigation, until the
 1251  investigation is closed or ceases to be active. An investigation
 1252  is considered “active” while the investigation is being
 1253  conducted with a reasonable, good faith belief that it could
 1254  lead to the filing of administrative, civil, or criminal
 1255  proceedings.
 1256         d. Matters reasonably encompassed in privileged attorney
 1257  client communications.
 1258         e. Proprietary information licensed to the corporation
 1259  under contract and the contract provides for the confidentiality
 1260  of such proprietary information.
 1261         f. All information relating to the medical condition or
 1262  medical status of a corporation employee which is not relevant
 1263  to the employee’s capacity to perform his or her duties, except
 1264  as otherwise provided in this paragraph. Information that is
 1265  exempt includes shall include, but is not limited to,
 1266  information relating to workers’ compensation, insurance
 1267  benefits, and retirement or disability benefits.
 1268         g. Upon an employee’s entrance into the employee assistance
 1269  program, a program to assist any employee who has a behavioral
 1270  or medical disorder, substance abuse problem, or emotional
 1271  difficulty that affects the employee’s job performance, all
 1272  records relative to that participation are shall be confidential
 1273  and exempt from the provisions of s. 119.07(1) and s. 24(a),
 1274  Art. I of the State Constitution, except as otherwise provided
 1275  in s. 112.0455(11).
 1276         h. Information relating to negotiations for financing,
 1277  reinsurance, depopulation, or contractual services, until the
 1278  conclusion of the negotiations.
 1279         i. Minutes of closed meetings regarding underwriting files,
 1280  and minutes of closed meetings regarding an open claims file
 1281  until termination of all litigation and settlement of all claims
 1282  with regard to that claim, except that information otherwise
 1283  confidential or exempt by law shall be redacted.
 1284         2. If an authorized insurer, a reinsurance intermediary, an
 1285  eligible surplus lines insurer, or an entity that has filed an
 1286  application with the office for licensure as a property and
 1287  casualty insurer in this state is considering writing or
 1288  assisting in the underwriting of a risk insured by the
 1289  corporation, relevant information from both the underwriting
 1290  files and confidential claims files may be released to the
 1291  insurer, reinsurance intermediary, eligible surplus lines
 1292  insurer, or entity that has been created to seek authority to
 1293  write property insurance in this state, provided the recipient
 1294  insurer agrees in writing, notarized and under oath, to maintain
 1295  the confidentiality of such files. If a policy file is
 1296  transferred to an insurer, that policy file is no longer a
 1297  public record because it is not held by an agency subject to the
 1298  provisions of the public records law. Underwriting files and
 1299  confidential claims files may also be released to staff and the
 1300  board of governors of the market assistance plan established
 1301  pursuant to s. 627.3515, who must retain the confidentiality of
 1302  such files, except such files may be released to authorized
 1303  insurers that are considering assuming the risks to which the
 1304  files apply, provided the insurer agrees in writing, notarized
 1305  and under oath, to maintain the confidentiality of such files.
 1306  Finally, the corporation or the board or staff of the market
 1307  assistance plan may make the following information obtained from
 1308  underwriting files and confidential claims files available to an
 1309  entity that has obtained a permit to become an authorized
 1310  insurer, a reinsurer that may provide reinsurance under s.
 1311  624.610, a licensed reinsurance broker, a licensed rating
 1312  organization, a modeling company, or a licensed general lines
 1313  insurance agent: name, address, and telephone number of the
 1314  residential property owner or insured; location of the risk;
 1315  rating information; loss history; and policy type. The receiving
 1316  person must retain the confidentiality of the information
 1317  received and may use the information only for the purposes of
 1318  developing a take-out plan or a rating plan to be submitted to
 1319  the office for approval or otherwise analyzing the underwriting
 1320  of a risk or risks insured by the corporation on behalf of the
 1321  private insurance market. A licensed general lines insurance
 1322  agent may not use such information for the direct solicitation
 1323  of policyholders.
 1324         3. A policyholder who has filed suit against the
 1325  corporation has the right to discover the contents of his or her
 1326  own claims file to the same extent that discovery of such
 1327  contents would be available from a private insurer in litigation
 1328  as provided by the Florida Rules of Civil Procedure, the Florida
 1329  Evidence Code, and other applicable law. Pursuant to subpoena, a
 1330  third party has the right to discover the contents of an
 1331  insured’s or applicant’s underwriting or claims file to the same
 1332  extent that discovery of such contents would be available from a
 1333  private insurer by subpoena as provided by the Florida Rules of
 1334  Civil Procedure, the Florida Evidence Code, and other applicable
 1335  law, and subject to any confidentiality protections requested by
 1336  the corporation and agreed to by the seeking party or ordered by
 1337  the court. The corporation may release confidential underwriting
 1338  and claims file contents and information as it deems necessary
 1339  and appropriate to underwrite or service insurance policies and
 1340  claims, subject to any confidentiality protections deemed
 1341  necessary and appropriate by the corporation.
 1342         4. Portions of meetings of the corporation are exempt from
 1343  the provisions of s. 286.011 and s. 24(b), Art. I of the State
 1344  Constitution wherein confidential underwriting files or
 1345  confidential open claims files are discussed. All portions of
 1346  corporation meetings which are closed to the public shall be
 1347  recorded by a court reporter. The court reporter shall record
 1348  the times of commencement and termination of the meeting, all
 1349  discussion and proceedings, the names of all persons present at
 1350  any time, and the names of all persons speaking. No portion of
 1351  any closed meeting shall be off the record. Subject to the
 1352  provisions hereof and s. 119.07(1)(d)-(f), the court reporter’s
 1353  notes of any closed meeting shall be retained by the corporation
 1354  for a minimum of 5 years. A copy of the transcript, less any
 1355  exempt matters, of any closed meeting wherein claims are
 1356  discussed shall become public as to individual claims after
 1357  settlement of the claim.
 1358         Section 3. Section 627.3517, Florida Statutes, is amended
 1359  to read:
 1360         627.3517 Consumer choice.—No provision of s. 627.351, s.
 1361  627.3511, or s. 627.3515 shall be construed to impair the right
 1362  of any insurance risk apportionment plan policyholder, upon
 1363  receipt of any keep-out keepout or take-out offer, to retain his
 1364  or her current agent, so long as that agent is duly licensed and
 1365  appointed by the insurance risk apportionment plan or otherwise
 1366  authorized to place business with the insurance risk
 1367  apportionment plan. This right may shall not be canceled,
 1368  suspended, impeded, abridged, or otherwise compromised by any
 1369  rule, plan of operation, or depopulation plan, whether through
 1370  keep-out keepout, take-out, midterm assumption, or any other
 1371  means, of any insurance risk apportionment plan or depopulation
 1372  plan, including, but not limited to, those described in s.
 1373  627.351, s. 627.3511, or s. 627.3515. The commission shall adopt
 1374  any rules necessary to cause any insurance risk apportionment
 1375  plan or market assistance plan under such sections to
 1376  demonstrate that the operations of the plan do not interfere
 1377  with, promote, or allow interference with the rights created
 1378  under this section. If the policyholder’s current agent is
 1379  unable or unwilling to be appointed with the insurer making the
 1380  take-out or keep-out keepout offer, the policyholder is shall
 1381  not be disqualified from participation in the appropriate
 1382  insurance risk apportionment plan because of an offer of
 1383  coverage in the voluntary market. An offer of full property
 1384  insurance coverage by the insurer currently insuring either the
 1385  ex-wind or wind-only coverage on the policy to which the offer
 1386  applies is shall not be considered a take-out or keep-out
 1387  keepout offer. Any rule, plan of operation, or plan of
 1388  depopulation, through keep-out keepout, take-out, midterm
 1389  assumption, or any other means, of any property insurance risk
 1390  apportionment plan under s. 627.351(2) or (6) is subject to ss.
 1391  627.351(2)(b) and (6)(c) and 627.3511(4).
 1392         Section 4. Subsection (5) of section 627.3518, Florida
 1393  Statutes, is amended, and paragraph (a) of subsection (6) and
 1394  paragraph (a) of subsection (7) of that section are reenacted,
 1395  to read:
 1396         627.3518 Citizens Property Insurance Corporation
 1397  policyholder eligibility clearinghouse program.—The purpose of
 1398  this section is to provide a framework for the corporation to
 1399  implement a clearinghouse program by January 1, 2014.
 1400         (5) Notwithstanding s. 627.3517, any applicant for new
 1401  coverage from the corporation is not eligible for coverage from
 1402  the corporation if provided an offer of coverage from an
 1403  authorized insurer through the program at a premium that is at
 1404  or below the eligibility threshold established in s.
 1405  627.351(6)(c)5.a. Whenever an offer of coverage for a personal
 1406  lines risk is received for a policyholder of the corporation at
 1407  renewal from an authorized insurer through the program, if the
 1408  offer is at or below the eligibility threshold established in s.
 1409  627.351(6)(c)5.a. equal to or less than the corporation’s
 1410  renewal premium for comparable coverage, the risk is not
 1411  eligible for coverage with the corporation. In the event an
 1412  offer of coverage for a new applicant or a personal lines risk
 1413  at renewal is received from an authorized insurer through the
 1414  program, and the premium offered exceeds the eligibility
 1415  thresholds specified threshold contained in s.
 1416  627.351(6)(c)5.a., the applicant or insured may elect to accept
 1417  such coverage, or may elect to accept or continue coverage with
 1418  the corporation. In the event an offer of coverage for a
 1419  personal lines risk is received from an authorized insurer at
 1420  renewal through the program, and the premium offered is more
 1421  than the corporation’s renewal premium for comparable coverage,
 1422  the insured may elect to accept such coverage, or may elect to
 1423  accept or continue coverage with the corporation. Section
 1424  627.351(6)(c)5.a.(I) does not apply to an offer of coverage from
 1425  an authorized insurer obtained through the program. An applicant
 1426  for coverage from the corporation who was declared ineligible
 1427  for coverage at renewal by the corporation in the previous 36
 1428  months due to an offer of coverage pursuant to this subsection
 1429  shall be considered a renewal under this section if the
 1430  corporation determines that the authorized insurer making the
 1431  offer of coverage pursuant to this subsection continues to
 1432  insure the applicant and increased the rate on the policy in
 1433  excess of the increase allowed for the corporation under s.
 1434  627.351(6)(n)6.
 1435         (6) Independent insurance agents submitting new
 1436  applications for coverage or that are the agent of record on a
 1437  renewal policy submitted to the program:
 1438         (a) Are granted and must maintain ownership and the
 1439  exclusive use of expirations, records, or other written or
 1440  electronic information directly related to such applications or
 1441  renewals written through the corporation or through an insurer
 1442  participating in the program, notwithstanding s.
 1443  627.351(6)(c)5.a.(I)(B) and (II)(B). Such ownership is granted
 1444  for as long as the insured remains with the agency or until sold
 1445  or surrendered in writing by the agent. Contracts with the
 1446  corporation or required by the corporation must not amend,
 1447  modify, interfere with, or limit such rights of ownership. Such
 1448  expirations, records, or other written or electronic information
 1449  may be used to review an application, issue a policy, or for any
 1450  other purpose necessary for placing such business through the
 1451  program.
 1452  
 1453  Applicants ineligible for coverage in accordance with subsection
 1454  (5) remain ineligible if their independent agent is unwilling or
 1455  unable to enter into a standard or limited agency agreement with
 1456  an insurer participating in the program.
 1457         (7) Exclusive agents submitting new applications for
 1458  coverage or that are the agent of record on a renewal policy
 1459  submitted to the program:
 1460         (a) Must maintain ownership and the exclusive use of
 1461  expirations, records, or other written or electronic information
 1462  directly related to such applications or renewals written
 1463  through the corporation or through an insurer participating in
 1464  the program, notwithstanding s. 627.351(6)(c)5.a.(I)(B) and
 1465  (II)(B). Contracts with the corporation or required by the
 1466  corporation must not amend, modify, interfere with, or limit
 1467  such rights of ownership. Such expirations, records, or other
 1468  written or electronic information may be used to review an
 1469  application, issue a policy, or for any other purpose necessary
 1470  for placing such business through the program.
 1471  
 1472  Applicants ineligible for coverage in accordance with subsection
 1473  (5) remain ineligible if their exclusive agent is unwilling or
 1474  unable to enter into a standard or limited agency agreement with
 1475  an insurer making an offer of coverage to that applicant.
 1476         Section 5. This act shall take effect January 1, 2022.