Florida Senate - 2022 COMMITTEE AMENDMENT Bill No. SB 1728 Ì486560-Î486560 LEGISLATIVE ACTION Senate . House Comm: RCS . 02/03/2022 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— 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 5715percent 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 offer61is equal to or less than the corporation’s renewal premium for62comparable 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.