Florida Senate - 2022                        COMMITTEE AMENDMENT
       Bill No. SB 1728
       
       
       
       
       
       
                                Ì486560-Î486560                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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       The Committee on Banking and Insurance (Boyd) recommended the
       following:
       
    1         Senate Amendment 
    2  
    3         Delete lines 483 - 549
    4  and insert:
    5  subparagraph 8. However, a policyholder removed from the
    6  corporation through an assumption agreement remains eligible for
    7  coverage from the corporation until the end of the assumption
    8  period. The corporation shall determine the type of policy to be
    9  provided on the basis of objective standards specified in the
   10  underwriting manual and based on generally accepted underwriting
   11  practices.
   12         (I) If the risk accepts an offer of coverage through the
   13  market assistance plan or through a mechanism established by the
   14  corporation other than a plan established by s. 627.3518, before
   15  a policy is issued to the risk by the corporation or during the
   16  first 30 days of coverage by the corporation, and the producing
   17  agent who submitted the application to the plan or to the
   18  corporation is not currently appointed by the insurer, the
   19  insurer shall:
   20         (A) Pay to the producing agent of record of the policy for
   21  the first year, an amount that is the greater of the insurer’s
   22  usual and customary commission for the type of policy written or
   23  a fee equal to the usual and customary commission of the
   24  corporation; or
   25         (B) Offer to allow the producing agent of record of the
   26  policy to continue servicing the policy for at least 1 year and
   27  offer to pay the agent the greater of the insurer’s or the
   28  corporation’s usual and customary commission for the type of
   29  policy written.
   30  
   31  If the producing agent is unwilling or unable to accept
   32  appointment, the new insurer shall pay the agent in accordance
   33  with sub-sub-sub-subparagraph (A).
   34         (II) If the corporation enters into a contractual agreement
   35  for a take-out plan, the producing agent of record of the
   36  corporation policy is entitled to retain any unearned commission
   37  on the policy, and the insurer shall:
   38         (A) Pay to the producing agent of record, for the first
   39  year, an amount that is the greater of the insurer’s usual and
   40  customary commission for the type of policy written or a fee
   41  equal to the usual and customary commission of the corporation;
   42  or
   43         (B) Offer to allow the producing agent of record to
   44  continue servicing the policy for at least 1 year and offer to
   45  pay the agent the greater of the insurer’s or the corporation’s
   46  usual and customary commission for the type of policy written.
   47  
   48  If the producing agent is unwilling or unable to accept
   49  appointment, the new insurer shall pay the agent in accordance
   50  with sub-sub-sub-subparagraph (A).
   51         b. With respect to commercial lines residential risks, for
   52  a new application to the corporation for coverage, if the risk
   53  is offered coverage under a policy including wind coverage from
   54  an authorized insurer at its approved rate, the risk is not
   55  eligible for a policy issued by the corporation unless the
   56  premium for coverage from the authorized insurer is more than 20
   57  15 percent greater than the premium for comparable coverage from
   58  the corporation. Whenever an offer of coverage for a commercial
   59  lines residential risk is received for a policyholder of the
   60  corporation at renewal from an authorized insurer, if the offer
   61  is equal to or less than the corporation’s renewal premium for
   62  comparable coverage, the risk is not eligible for coverage with
   63  the corporation unless the premium for coverage from the
   64  authorized insurer is more than 20 percent greater than the
   65  renewal premium for comparable coverage from the corporation. If
   66  the risk is not able to obtain any such offer, the risk is
   67  eligible for a policy including wind coverage issued by the
   68  corporation. However, a policyholder removed from the
   69  corporation through an assumption agreement remains eligible for
   70  coverage from the corporation until the end of the assumption
   71  period.