Florida Senate - 2022                          SENATOR AMENDMENT
       Bill No. SB 2-A
       
       
       
       
       
       
                                Ì130902sÎ130902                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                Floor: 4/F/2R          .                                
             12/13/2022 02:46 PM       .                                
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       Senator Pizzo moved the following:
       
       
       
    1         Senate Amendment 
    2  
    3  
    4         Delete lines 540 - 2412
    5  and insert:
    6  In a suit commenced before December 31, 2022, arising under a
    7  residential or commercial property insurance policy, the amount
    8  of reasonable attorney fees shall be awarded only as provided in
    9  s. 57.105 or s. 627.70152, as applicable.
   10         (3) In a suit arising under a residential or commercial
   11  property insurance policy, there is no the right to attorney
   12  fees under this section may not be transferred to, assigned to,
   13  or acquired in any other manner by anyone other than a named or
   14  omnibus insured or a named beneficiary.
   15         Section 7. Paragraph (i) of subsection (1) of section
   16  626.9541, Florida Statutes, is amended to read:
   17         626.9541 Unfair methods of competition and unfair or
   18  deceptive acts or practices defined.—
   19         (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
   20  ACTS.—The following are defined as unfair methods of competition
   21  and unfair or deceptive acts or practices:
   22         (i) Unfair claim settlement practices.—
   23         1. Attempting to settle claims on the basis of an
   24  application, when serving as a binder or intended to become a
   25  part of the policy, or any other material document which was
   26  altered without notice to, or knowledge or consent of, the
   27  insured;
   28         2. A material misrepresentation made to an insured or any
   29  other person having an interest in the proceeds payable under
   30  such contract or policy, for the purpose and with the intent of
   31  effecting settlement of such claims, loss, or damage under such
   32  contract or policy on less favorable terms than those provided
   33  in, and contemplated by, such contract or policy;
   34         3. Committing or performing with such frequency as to
   35  indicate a general business practice any of the following:
   36         a. Failing to adopt and implement standards for the proper
   37  investigation of claims;
   38         b. Misrepresenting pertinent facts or insurance policy
   39  provisions relating to coverages at issue;
   40         c. Failing to acknowledge and act promptly upon
   41  communications with respect to claims;
   42         d. Denying claims without conducting reasonable
   43  investigations based upon available information;
   44         e. Failing to affirm or deny full or partial coverage of
   45  claims, and, as to partial coverage, the dollar amount or extent
   46  of coverage, or failing to provide a written statement that the
   47  claim is being investigated, upon the written request of the
   48  insured within 30 days after proof-of-loss statements have been
   49  completed;
   50         f. Failing to promptly provide a reasonable explanation in
   51  writing to the insured of the basis in the insurance policy, in
   52  relation to the facts or applicable law, for denial of a claim
   53  or for the offer of a compromise settlement;
   54         g. Failing to promptly notify the insured of any additional
   55  information necessary for the processing of a claim;
   56         h. Failing to clearly explain the nature of the requested
   57  information and the reasons why such information is necessary;
   58  or
   59         i. Failing to pay personal injury protection insurance
   60  claims within the time periods required by s. 627.736(4)(b). The
   61  office may order the insurer to pay restitution to a
   62  policyholder, medical provider, or other claimant, including
   63  interest at a rate consistent with the amount set forth in s.
   64  55.03(1), for the time period within which an insurer fails to
   65  pay claims as required by law. Restitution is in addition to any
   66  other penalties allowed by law, including, but not limited to,
   67  the suspension of the insurer’s certificate of authority; or
   68         4. Failing to pay undisputed amounts of partial or full
   69  benefits owed under first-party property insurance policies
   70  within 60 90 days after an insurer receives notice of a
   71  residential property insurance claim, determines the amounts of
   72  partial or full benefits, and agrees to coverage, unless payment
   73  of the undisputed benefits is prevented by factors beyond the
   74  control of the insurer as defined in s. 627.70131(5) an act of
   75  God, prevented by the impossibility of performance, or due to
   76  actions by the insured or claimant that constitute fraud, lack
   77  of cooperation, or intentional misrepresentation regarding the
   78  claim for which benefits are owed.
   79         Section 8. Effective January 1, 2023, paragraphs (b), (c),
   80  (n), (o), (p), (q), (v), (w), (aa), and (ii) of subsection (6)
   81  of section 627.351, Florida Statutes, are amended, and paragraph
   82  (kk) is added to that subsection, to read:
   83         627.351 Insurance risk apportionment plans.—
   84         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
   85         (b)1. All insurers authorized to write one or more subject
   86  lines of business in this state are subject to assessment by the
   87  corporation and, for the purposes of this subsection, are
   88  referred to collectively as “assessable insurers.” Insurers
   89  writing one or more subject lines of business in this state
   90  pursuant to part VIII of chapter 626 are not assessable
   91  insurers; however, insureds who procure one or more subject
   92  lines of business in this state pursuant to part VIII of chapter
   93  626 are subject to assessment by the corporation and are
   94  referred to collectively as “assessable insureds.” An insurer’s
   95  assessment liability begins on the first day of the calendar
   96  year following the year in which the insurer was issued a
   97  certificate of authority to transact insurance for subject lines
   98  of business in this state and terminates 1 year after the end of
   99  the first calendar year during which the insurer no longer holds
  100  a certificate of authority to transact insurance for subject
  101  lines of business in this state.
  102         2.a. All revenues, assets, liabilities, losses, and
  103  expenses of the corporation shall be divided into three separate
  104  accounts as follows:
  105         (I) A personal lines account for personal residential
  106  policies issued by the corporation which provides comprehensive,
  107  multiperil coverage on risks that are not located in areas
  108  eligible for coverage by the Florida Windstorm Underwriting
  109  Association as those areas were defined on January 1, 2002, and
  110  for policies that do not provide coverage for the peril of wind
  111  on risks that are located in such areas;
  112         (II) A commercial lines account for commercial residential
  113  and commercial nonresidential policies issued by the corporation
  114  which provides coverage for basic property perils on risks that
  115  are not located in areas eligible for coverage by the Florida
  116  Windstorm Underwriting Association as those areas were defined
  117  on January 1, 2002, and for policies that do not provide
  118  coverage for the peril of wind on risks that are located in such
  119  areas; and
  120         (III) A coastal account for personal residential policies
  121  and commercial residential and commercial nonresidential
  122  property policies issued by the corporation which provides
  123  coverage for the peril of wind on risks that are located in
  124  areas eligible for coverage by the Florida Windstorm
  125  Underwriting Association as those areas were defined on January
  126  1, 2002. The corporation may offer policies that provide
  127  multiperil coverage and shall offer policies that provide
  128  coverage only for the peril of wind for risks located in areas
  129  eligible for coverage in the coastal account. Effective July 1,
  130  2014, the corporation shall cease offering new commercial
  131  residential policies providing multiperil coverage and shall
  132  instead continue to offer commercial residential wind-only
  133  policies, and may offer commercial residential policies
  134  excluding wind. The corporation may, however, continue to renew
  135  a commercial residential multiperil policy on a building that is
  136  insured by the corporation on June 30, 2014, under a multiperil
  137  policy. In issuing multiperil coverage, the corporation may use
  138  its approved policy forms and rates for the personal lines
  139  account. An applicant or insured who is eligible to purchase a
  140  multiperil policy from the corporation may purchase a multiperil
  141  policy from an authorized insurer without prejudice to the
  142  applicant’s or insured’s eligibility to prospectively purchase a
  143  policy that provides coverage only for the peril of wind from
  144  the corporation. An applicant or insured who is eligible for a
  145  corporation policy that provides coverage only for the peril of
  146  wind may elect to purchase or retain such policy and also
  147  purchase or retain coverage excluding wind from an authorized
  148  insurer without prejudice to the applicant’s or insured’s
  149  eligibility to prospectively purchase a policy that provides
  150  multiperil coverage from the corporation. It is the goal of the
  151  Legislature that there be an overall average savings of 10
  152  percent or more for a policyholder who currently has a wind-only
  153  policy with the corporation, and an ex-wind policy with a
  154  voluntary insurer or the corporation, and who obtains a
  155  multiperil policy from the corporation. It is the intent of the
  156  Legislature that the offer of multiperil coverage in the coastal
  157  account be made and implemented in a manner that does not
  158  adversely affect the tax-exempt status of the corporation or
  159  creditworthiness of or security for currently outstanding
  160  financing obligations or credit facilities of the coastal
  161  account, the personal lines account, or the commercial lines
  162  account. The coastal account must also include quota share
  163  primary insurance under subparagraph (c)2. The area eligible for
  164  coverage under the coastal account also includes the area within
  165  Port Canaveral, which is bordered on the south by the City of
  166  Cape Canaveral, bordered on the west by the Banana River, and
  167  bordered on the north by Federal Government property.
  168         b. The three separate accounts must be maintained as long
  169  as financing obligations entered into by the Florida Windstorm
  170  Underwriting Association or Residential Property and Casualty
  171  Joint Underwriting Association are outstanding, in accordance
  172  with the terms of the corresponding financing documents. If no
  173  such financing obligations remain outstanding or if the
  174  financing documents allow for combining of accounts, the
  175  corporation may consolidate the three separate accounts into a
  176  new account, to be known as the Citizens account, for all
  177  revenues, assets, liabilities, losses, and expenses of the
  178  corporation. The Citizens account, if established by the
  179  corporation, is authorized to provide coverage to the same
  180  extent as provided under each of the three separate accounts.
  181  The authority to provide coverage under the Citizens account is
  182  set forth in subparagraph 4. If the financing obligations are no
  183  longer outstanding, the corporation may use a single account for
  184  all revenues, assets, liabilities, losses, and expenses of the
  185  corporation. Consistent with this subparagraph and prudent
  186  investment policies that minimize the cost of carrying debt, the
  187  board shall exercise its best efforts to retire existing debt or
  188  obtain the approval of necessary parties to amend the terms of
  189  existing debt, so as to structure the most efficient plan for
  190  consolidating the three separate accounts into a single account.
  191  Once the accounts are combined into one account, this
  192  subparagraph and subparagraph 3. shall be replaced in their
  193  entirety by subparagraphs 4. and 5.
  194         c. Creditors of the Residential Property and Casualty Joint
  195  Underwriting Association and the accounts specified in sub-sub
  196  subparagraphs a.(I) and (II) may have a claim against, and
  197  recourse to, those accounts and no claim against, or recourse
  198  to, the account referred to in sub-sub-subparagraph a.(III).
  199  Creditors of the Florida Windstorm Underwriting Association have
  200  a claim against, and recourse to, the account referred to in
  201  sub-sub-subparagraph a.(III) and no claim against, or recourse
  202  to, the accounts referred to in sub-sub-subparagraphs a.(I) and
  203  (II).
  204         d. Revenues, assets, liabilities, losses, and expenses not
  205  attributable to particular accounts shall be prorated among the
  206  accounts.
  207         e. The Legislature finds that the revenues of the
  208  corporation are revenues that are necessary to meet the
  209  requirements set forth in documents authorizing the issuance of
  210  bonds under this subsection.
  211         f. The income of the corporation may not inure to the
  212  benefit of any private person.
  213         3. With respect to a deficit in an account:
  214         a. After accounting for the Citizens policyholder surcharge
  215  imposed under sub-subparagraph i., if the remaining projected
  216  deficit incurred in the coastal account in a particular calendar
  217  year:
  218         (I) Is not greater than 2 percent of the aggregate
  219  statewide direct written premium for the subject lines of
  220  business for the prior calendar year, the entire deficit shall
  221  be recovered through regular assessments of assessable insurers
  222  under paragraph (q) and assessable insureds.
  223         (II) Exceeds 2 percent of the aggregate statewide direct
  224  written premium for the subject lines of business for the prior
  225  calendar year, the corporation shall levy regular assessments on
  226  assessable insurers under paragraph (q) and on assessable
  227  insureds in an amount equal to the greater of 2 percent of the
  228  projected deficit or 2 percent of the aggregate statewide direct
  229  written premium for the subject lines of business for the prior
  230  calendar year. Any remaining projected deficit shall be
  231  recovered through emergency assessments under sub-subparagraph
  232  e. d.
  233         b. Each assessable insurer’s share of the amount being
  234  assessed under sub-subparagraph a. must be in the proportion
  235  that the assessable insurer’s direct written premium for the
  236  subject lines of business for the year preceding the assessment
  237  bears to the aggregate statewide direct written premium for the
  238  subject lines of business for that year. The assessment
  239  percentage applicable to each assessable insured is the ratio of
  240  the amount being assessed under sub-subparagraph a. to the
  241  aggregate statewide direct written premium for the subject lines
  242  of business for the prior year. Assessments levied by the
  243  corporation on assessable insurers under sub-subparagraph a.
  244  must be paid as required by the corporation’s plan of operation
  245  and paragraph (q). Assessments levied by the corporation on
  246  assessable insureds under sub-subparagraph a. shall be collected
  247  by the surplus lines agent at the time the surplus lines agent
  248  collects the surplus lines tax required by s. 626.932, and paid
  249  to the Florida Surplus Lines Service Office at the time the
  250  surplus lines agent pays the surplus lines tax to that office.
  251  Upon receipt of regular assessments from surplus lines agents,
  252  the Florida Surplus Lines Service Office shall transfer the
  253  assessments directly to the corporation as determined by the
  254  corporation.
  255         c. The corporation may not levy regular assessments under
  256  paragraph (q) pursuant to sub-subparagraph a. or sub
  257  subparagraph b. if the three separate accounts in sub-sub
  258  subparagraphs 2.a.(I)-(III) have been consolidated into the
  259  Citizens account pursuant to sub-subparagraph 2.b. However, the
  260  outstanding balance of any regular assessment levied by the
  261  corporation before establishment of the Citizens account remains
  262  payable to the corporation.
  263         d. After accounting for the Citizens policyholder surcharge
  264  imposed under sub-subparagraph j. i., the remaining projected
  265  deficits in the personal lines account and in the commercial
  266  lines account in a particular calendar year shall be recovered
  267  through emergency assessments under sub-subparagraph e. d.
  268         e.d. Upon a determination by the board of governors that a
  269  projected deficit in an account exceeds the amount that is
  270  expected to be recovered through regular assessments under sub
  271  subparagraph a., plus the amount that is expected to be
  272  recovered through surcharges under sub-subparagraph j. i., the
  273  board, after verification by the office, shall levy emergency
  274  assessments for as many years as necessary to cover the
  275  deficits, to be collected by assessable insurers and the
  276  corporation and collected from assessable insureds upon issuance
  277  or renewal of policies for subject lines of business, excluding
  278  National Flood Insurance policies. The amount collected in a
  279  particular year must be a uniform percentage of that year’s
  280  direct written premium for subject lines of business and all
  281  accounts of the corporation, excluding National Flood Insurance
  282  Program policy premiums, as annually determined by the board and
  283  verified by the office. The office shall verify the arithmetic
  284  calculations involved in the board’s determination within 30
  285  days after receipt of the information on which the determination
  286  was based. The office shall notify assessable insurers and the
  287  Florida Surplus Lines Service Office of the date on which
  288  assessable insurers shall begin to collect and assessable
  289  insureds shall begin to pay such assessment. The date must be at
  290  least 90 days after the date the corporation levies emergency
  291  assessments pursuant to this sub-subparagraph. Notwithstanding
  292  any other provision of law, the corporation and each assessable
  293  insurer that writes subject lines of business shall collect
  294  emergency assessments from its policyholders without such
  295  obligation being affected by any credit, limitation, exemption,
  296  or deferment. Emergency assessments levied by the corporation on
  297  assessable insureds shall be collected by the surplus lines
  298  agent at the time the surplus lines agent collects the surplus
  299  lines tax required by s. 626.932 and paid to the Florida Surplus
  300  Lines Service Office at the time the surplus lines agent pays
  301  the surplus lines tax to that office. The emergency assessments
  302  collected shall be transferred directly to the corporation on a
  303  periodic basis as determined by the corporation and held by the
  304  corporation solely in the applicable account. The aggregate
  305  amount of emergency assessments levied for an account in any
  306  calendar year may be less than but may not exceed the greater of
  307  10 percent of the amount needed to cover the deficit, plus
  308  interest, fees, commissions, required reserves, and other costs
  309  associated with financing the original deficit, or 10 percent of
  310  the aggregate statewide direct written premium for subject lines
  311  of business and all accounts of the corporation for the prior
  312  year, plus interest, fees, commissions, required reserves, and
  313  other costs associated with financing the deficit.
  314         f.e. The corporation may pledge the proceeds of
  315  assessments, projected recoveries from the Florida Hurricane
  316  Catastrophe Fund, other insurance and reinsurance recoverables,
  317  policyholder surcharges and other surcharges, and other funds
  318  available to the corporation as the source of revenue for and to
  319  secure bonds issued under paragraph (q), bonds or other
  320  indebtedness issued under subparagraph (c)3., or lines of credit
  321  or other financing mechanisms issued or created under this
  322  subsection, or to retire any other debt incurred as a result of
  323  deficits or events giving rise to deficits, or in any other way
  324  that the board determines will efficiently recover such
  325  deficits. The purpose of the lines of credit or other financing
  326  mechanisms is to provide additional resources to assist the
  327  corporation in covering claims and expenses attributable to a
  328  catastrophe. As used in this subsection, the term “assessments”
  329  includes regular assessments under sub-subparagraph a. or
  330  subparagraph (q)1. and emergency assessments under sub
  331  subparagraph e. d. Emergency assessments collected under sub
  332  subparagraph e. d. are not part of an insurer’s rates, are not
  333  premium, and are not subject to premium tax, fees, or
  334  commissions; however, failure to pay the emergency assessment
  335  shall be treated as failure to pay premium. The emergency
  336  assessments shall continue as long as any bonds issued or other
  337  indebtedness incurred with respect to a deficit for which the
  338  assessment was imposed remain outstanding, unless adequate
  339  provision has been made for the payment of such bonds or other
  340  indebtedness pursuant to the documents governing such bonds or
  341  indebtedness.
  342         g.f. As used in this subsection for purposes of any deficit
  343  incurred on or after January 25, 2007, the term “subject lines
  344  of business” means insurance written by assessable insurers or
  345  procured by assessable insureds for all property and casualty
  346  lines of business in this state, but not including workers’
  347  compensation or medical malpractice. As used in this sub
  348  subparagraph, the term “property and casualty lines of business”
  349  includes all lines of business identified on Form 2, Exhibit of
  350  Premiums and Losses, in the annual statement required of
  351  authorized insurers under s. 624.424 and any rule adopted under
  352  this section, except for those lines identified as accident and
  353  health insurance and except for policies written under the
  354  National Flood Insurance Program or the Federal Crop Insurance
  355  Program. For purposes of this sub-subparagraph, the term
  356  “workers’ compensation” includes both workers’ compensation
  357  insurance and excess workers’ compensation insurance.
  358         h.g. The Florida Surplus Lines Service Office shall
  359  determine annually the aggregate statewide written premium in
  360  subject lines of business procured by assessable insureds and
  361  report that information to the corporation in a form and at a
  362  time the corporation specifies to ensure that the corporation
  363  can meet the requirements of this subsection and the
  364  corporation’s financing obligations.
  365         i.h. The Florida Surplus Lines Service Office shall verify
  366  the proper application by surplus lines agents of assessment
  367  percentages for regular assessments and emergency assessments
  368  levied under this subparagraph on assessable insureds and assist
  369  the corporation in ensuring the accurate, timely collection and
  370  payment of assessments by surplus lines agents as required by
  371  the corporation.
  372         j.i. Upon determination by the board of governors that an
  373  account has a projected deficit, the board shall levy a Citizens
  374  policyholder surcharge against all policyholders of the
  375  corporation.
  376         (I) The surcharge shall be levied as a uniform percentage
  377  of the premium for the policy of up to 15 percent of such
  378  premium, which funds shall be used to offset the deficit.
  379         (II) The surcharge is payable upon cancellation or
  380  termination of the policy, upon renewal of the policy, or upon
  381  issuance of a new policy by the corporation within the first 12
  382  months after the date of the levy or the period of time
  383  necessary to fully collect the surcharge amount.
  384         (III) The corporation may not levy any regular assessments
  385  under paragraph (q) pursuant to sub-subparagraph a. or sub
  386  subparagraph b. with respect to a particular year’s deficit
  387  until the corporation has first levied the full amount of the
  388  surcharge authorized by this sub-subparagraph.
  389         (IV) The surcharge is not considered premium and is not
  390  subject to commissions, fees, or premium taxes. However, failure
  391  to pay the surcharge shall be treated as failure to pay premium.
  392         k.j. If the amount of any assessments or surcharges
  393  collected from corporation policyholders, assessable insurers or
  394  their policyholders, or assessable insureds exceeds the amount
  395  of the deficits, such excess amounts shall be remitted to and
  396  retained by the corporation in a reserve to be used by the
  397  corporation, as determined by the board of governors and
  398  approved by the office, to pay claims or reduce any past,
  399  present, or future plan-year deficits or to reduce outstanding
  400  debt.
  401         4.The Citizens account, if established by the corporation
  402  pursuant to sub-subparagraph 2.b., is authorized to provide:
  403         a.Personal residential policies that provide
  404  comprehensive, multiperil coverage on risks that are not located
  405  in areas eligible for coverage by the Florida Windstorm
  406  Underwriting Association, as those areas were defined on January
  407  1, 2002, and for policies that do not provide coverage for the
  408  peril of wind on risks that are located in such areas;
  409         b.Commercial residential and commercial nonresidential
  410  policies that provide coverage for basic property perils on
  411  risks that are not located in areas eligible for coverage by the
  412  Florida Windstorm Underwriting Association, as those areas were
  413  defined on January 1, 2002, and for policies that do not provide
  414  coverage for the peril of wind on risks that are located in such
  415  areas; and
  416         c.Personal residential policies and commercial residential
  417  and commercial nonresidential property policies that provide
  418  coverage for the peril of wind on risks that are located in
  419  areas eligible for coverage by the Florida Windstorm
  420  Underwriting Association, as those areas were defined on January
  421  1, 2002. The corporation may offer policies that provide
  422  multiperil coverage and shall offer policies that provide
  423  coverage only for the peril of wind for risks located in areas
  424  eligible for coverage by the Florida Windstorm Underwriting
  425  Association, as those areas were defined on January 1, 2002. The
  426  corporation may not offer new commercial residential policies
  427  providing multiperil coverage, but shall continue to offer
  428  commercial residential wind-only policies, and may offer
  429  commercial residential policies excluding wind. However, the
  430  corporation may continue to renew a commercial residential
  431  multiperil policy on a building that was insured by the
  432  corporation on June 30, 2014, under a multiperil policy. In
  433  issuing multiperil coverage under this sub-subparagraph, the
  434  corporation may use its approved policy forms and rates for
  435  risks located in areas not eligible for coverage by the Florida
  436  Windstorm Underwriting Association as those areas were defined
  437  on January 1, 2002, and for policies that do not provide
  438  coverage for the peril of wind on risks that are located in such
  439  areas. An applicant or insured who is eligible to purchase a
  440  multiperil policy from the corporation may purchase a multiperil
  441  policy from an authorized insurer without prejudice to the
  442  applicant’s or insured’s eligibility to prospectively purchase a
  443  policy that provides coverage only for the peril of wind from
  444  the corporation. An applicant or insured who is eligible for a
  445  corporation policy that provides coverage only for the peril of
  446  wind may elect to purchase or retain such policy and also
  447  purchase or retain coverage excluding wind from an authorized
  448  insurer without prejudice to the applicant’s or insured’s
  449  eligibility to prospectively purchase a policy that provides
  450  multiperil coverage from the corporation. The following
  451  policies, which provide coverage only for the peril of wind,
  452  must also include quota share primary insurance under
  453  subparagraph (c)2.: Personal residential policies and commercial
  454  residential and commercial nonresidential property policies that
  455  provide coverage for the peril of wind on risks that are located
  456  in areas eligible for coverage by the Florida Windstorm
  457  Underwriting Association, as those areas were defined on January
  458  1, 2002; policies that provide multiperil coverage, if offered
  459  by the corporation, and policies that provide coverage only for
  460  the peril of wind for risks located in areas eligible for
  461  coverage by the Florida Windstorm Underwriting Association, as
  462  those areas were defined on January 1, 2002; commercial
  463  residential wind-only policies; commercial residential policies
  464  excluding wind, if offered by the corporation; and commercial
  465  residential multiperil policies on a building that was insured
  466  by the corporation on June 30, 2014. The area eligible for
  467  coverage with the corporation under this sub-subparagraph
  468  includes the area within Port Canaveral, which is bordered on
  469  the south by the City of Cape Canaveral, bordered on the west by
  470  the Banana River, and bordered on the north by Federal
  471  Government property.
  472         5.With respect to a deficit in the Citizens account:
  473         a.Upon a determination by the board of governors that the
  474  Citizens account has a projected deficit, the board shall levy a
  475  Citizens policyholder surcharge against all policyholders of the
  476  corporation.
  477         (I) The surcharge shall be levied as a uniform percentage
  478  of the premium for the policy of up to 15 percent of such
  479  premium, which funds shall be used to offset the deficit.
  480         (II) The surcharge is payable upon cancellation or
  481  termination of the policy, upon renewal of the policy, or upon
  482  issuance of a new policy by the corporation within the first 12
  483  months after the date of the levy or the period of time
  484  necessary to fully collect the surcharge amount.
  485         (III)The surcharge is not considered premium and is not
  486  subject to commissions, fees, or premium taxes. However, failure
  487  to pay the surcharge shall be treated as failure to pay premium.
  488         b. After accounting for the Citizens policyholder surcharge
  489  imposed under sub-subparagraph a., the remaining projected
  490  deficit incurred in the Citizens account in a particular
  491  calendar year shall be recovered through emergency assessments
  492  under sub-subparagraph c.
  493         c.Upon a determination by the board of governors that a
  494  projected deficit in the Citizens account exceeds the amount
  495  that is expected to be recovered through surcharges under sub
  496  subparagraph a., the board, after verification by the office,
  497  shall levy emergency assessments for as many years as necessary
  498  to cover the deficits, to be collected by assessable insurers
  499  and the corporation and collected from assessable insureds upon
  500  issuance or renewal of policies for subject lines of business,
  501  excluding National Flood Insurance Program policies. The amount
  502  collected in a particular year must be a uniform percentage of
  503  that year’s direct written premium for subject lines of business
  504  and the Citizens account, National Flood Insurance Program
  505  policy premiums, as annually determined by the board and
  506  verified by the office. The office shall verify the arithmetic
  507  calculations involved in the board’s determination within 30
  508  days after receipt of the information on which the determination
  509  was based. The office shall notify assessable insurers and the
  510  Florida Surplus Lines Service Office of the date on which
  511  assessable insurers shall begin to collect and assessable
  512  insureds shall begin to pay such assessment. The date must be at
  513  least 90 days after the date the corporation levies emergency
  514  assessments pursuant to this sub-subparagraph. Notwithstanding
  515  any other law, the corporation and each assessable insurer that
  516  writes subject lines of business shall collect emergency
  517  assessments from its policyholders without such obligation being
  518  affected by any credit, limitation, exemption, or deferment.
  519  Emergency assessments levied by the corporation on assessable
  520  insureds shall be collected by the surplus lines agent at the
  521  time the surplus lines agent collects the surplus lines tax
  522  required by s. 626.932 and paid to the Florida Surplus Lines
  523  Service Office at the time the surplus lines agent pays the
  524  surplus lines tax to that office. The emergency assessments
  525  collected shall be transferred directly to the corporation on a
  526  periodic basis as determined by the corporation and held by the
  527  corporation solely in the Citizens account. The aggregate amount
  528  of emergency assessments levied for the Citizens account in any
  529  calendar year may be less than, but may not exceed the greater
  530  of, 10 percent of the amount needed to cover the deficit, plus
  531  interest, fees, commissions, required reserves, and other costs
  532  associated with financing the original deficit or 10 percent of
  533  the aggregate statewide direct written premium for subject lines
  534  of business and the Citizens accounts for the prior year, plus
  535  interest, fees, commissions, required reserves, and other costs
  536  associated with financing the deficit.
  537         d.The corporation may pledge the proceeds of assessments,
  538  projected recoveries from the Florida Hurricane Catastrophe
  539  Fund, other insurance and reinsurance recoverables, policyholder
  540  surcharges and other surcharges, and other funds available to
  541  the corporation as the source of revenue for and to secure bonds
  542  issued under paragraph (q), bonds or other indebtedness issued
  543  under subparagraph (c)3., or lines of credit or other financing
  544  mechanisms issued or created under this subsection; or to retire
  545  any other debt incurred as a result of deficits or events giving
  546  rise to deficits, or in any other way that the board determines
  547  will efficiently recover such deficits. The purpose of the lines
  548  of credit or other financing mechanisms is to provide additional
  549  resources to assist the corporation in covering claims and
  550  expenses attributable to a catastrophe. As used in this
  551  subsection, the term “assessments” includes emergency
  552  assessments under sub-subparagraph c. Emergency assessments
  553  collected under sub-subparagraph c. are not part of an insurer’s
  554  rates, are not premium, and are not subject to premium tax,
  555  fees, or commissions; however, failure to pay the emergency
  556  assessment shall be treated as failure to pay premium. The
  557  emergency assessments shall continue as long as any bonds issued
  558  or other indebtedness incurred with respect to a deficit for
  559  which the assessment was imposed remain outstanding, unless
  560  adequate provision has been made for the payment of such bonds
  561  or other indebtedness pursuant to the documents governing such
  562  bonds or indebtedness.
  563         e.As used in this subsection and for purposes of any
  564  deficit incurred on or after January 25, 2007, the term “subject
  565  lines of business” means insurance written by assessable
  566  insurers or procured by assessable insureds for all property and
  567  casualty lines of business in this state, but not including
  568  workers’ compensation or medical malpractice. As used in this
  569  sub-subparagraph, the term “property and casualty lines of
  570  business” includes all lines of business identified on Form 2,
  571  Exhibit of Premiums and Losses, in the annual statement required
  572  of authorized insurers under s. 624.424 and any rule adopted
  573  under this section, except for those lines identified as
  574  accident and health insurance and except for policies written
  575  under the National Flood Insurance Program or the Federal Crop
  576  Insurance Program. For purposes of this sub-subparagraph, the
  577  term “workers’ compensation” includes both workers’ compensation
  578  insurance and excess workers’ compensation insurance.
  579         f.The Florida Surplus Lines Service Office shall annually
  580  determine the aggregate statewide written premium in subject
  581  lines of business procured by assessable insureds and report
  582  that information to the corporation in a form and at a time the
  583  corporation specifies to ensure that the corporation can meet
  584  the requirements of this subsection and the corporation’s
  585  financing obligations.
  586         g.The Florida Surplus Lines Service Office shall verify
  587  the proper application by surplus lines agents of assessment
  588  percentages for emergency assessments levied under this
  589  subparagraph on assessable insureds and assist the corporation
  590  in ensuring the accurate, timely collection and payment of
  591  assessments by surplus lines agents as required by the
  592  corporation.
  593         h.If the amount of any assessments or surcharges collected
  594  from corporation policyholders, assessable insurers or their
  595  policyholders, or assessable insureds exceeds the amount of the
  596  deficits, such excess amounts shall be remitted to and retained
  597  by the corporation in a reserve to be used by the corporation,
  598  as determined by the board of governors and approved by the
  599  office, to pay claims or reduce any past, present, or future
  600  plan-year deficits or to reduce outstanding debt.
  601         (c) The corporation’s plan of operation:
  602         1. Must provide for adoption of residential property and
  603  casualty insurance policy forms and commercial residential and
  604  nonresidential property insurance forms, which must be approved
  605  by the office before use. The corporation shall adopt the
  606  following policy forms:
  607         a. Standard personal lines policy forms that are
  608  comprehensive multiperil policies providing full coverage of a
  609  residential property equivalent to the coverage provided in the
  610  private insurance market under an HO-3, HO-4, or HO-6 policy.
  611         b. Basic personal lines policy forms that are policies
  612  similar to an HO-8 policy or a dwelling fire policy that provide
  613  coverage meeting the requirements of the secondary mortgage
  614  market, but which is more limited than the coverage under a
  615  standard policy.
  616         c. Commercial lines residential and nonresidential policy
  617  forms that are generally similar to the basic perils of full
  618  coverage obtainable for commercial residential structures and
  619  commercial nonresidential structures in the admitted voluntary
  620  market.
  621         d. Personal lines and commercial lines residential property
  622  insurance forms that cover the peril of wind only. The forms are
  623  applicable only to residential properties located in areas
  624  eligible for coverage by the Florida Windstorm Underwriting
  625  Association, as those areas were defined on January 1, 2002
  626  under the coastal account referred to in sub-subparagraph
  627  (b)2.a.
  628         e. Commercial lines nonresidential property insurance forms
  629  that cover the peril of wind only. The forms are applicable only
  630  to nonresidential properties located in areas eligible for
  631  coverage by the Florida Windstorm Underwriting Association, as
  632  those areas were defined on January 1, 2002 under the coastal
  633  account referred to in sub-subparagraph (b)2.a.
  634         f. The corporation may adopt variations of the policy forms
  635  listed in sub-subparagraphs a.-e. which contain more restrictive
  636  coverage.
  637         g. Effective January 1, 2013, The corporation shall offer a
  638  basic personal lines policy similar to an HO-8 policy with
  639  dwelling repair based on common construction materials and
  640  methods.
  641         2. Must provide that the corporation adopt a program in
  642  which the corporation and authorized insurers enter into quota
  643  share primary insurance agreements for hurricane coverage, as
  644  defined in s. 627.4025(2)(a), for eligible risks, and adopt
  645  property insurance forms for eligible risks which cover the
  646  peril of wind only.
  647         a. As used in this subsection, the term:
  648         (I) “Quota share primary insurance” means an arrangement in
  649  which the primary hurricane coverage of an eligible risk is
  650  provided in specified percentages by the corporation and an
  651  authorized insurer. The corporation and authorized insurer are
  652  each solely responsible for a specified percentage of hurricane
  653  coverage of an eligible risk as set forth in a quota share
  654  primary insurance agreement between the corporation and an
  655  authorized insurer and the insurance contract. The
  656  responsibility of the corporation or authorized insurer to pay
  657  its specified percentage of hurricane losses of an eligible
  658  risk, as set forth in the agreement, may not be altered by the
  659  inability of the other party to pay its specified percentage of
  660  losses. Eligible risks that are provided hurricane coverage
  661  through a quota share primary insurance arrangement must be
  662  provided policy forms that set forth the obligations of the
  663  corporation and authorized insurer under the arrangement,
  664  clearly specify the percentages of quota share primary insurance
  665  provided by the corporation and authorized insurer, and
  666  conspicuously and clearly state that the authorized insurer and
  667  the corporation may not be held responsible beyond their
  668  specified percentage of coverage of hurricane losses.
  669         (II) “Eligible risks” means personal lines residential and
  670  commercial lines residential risks that meet the underwriting
  671  criteria of the corporation and are located in areas that were
  672  eligible for coverage by the Florida Windstorm Underwriting
  673  Association on January 1, 2002.
  674         b. The corporation may enter into quota share primary
  675  insurance agreements with authorized insurers at corporation
  676  coverage levels of 90 percent and 50 percent.
  677         c. If the corporation determines that additional coverage
  678  levels are necessary to maximize participation in quota share
  679  primary insurance agreements by authorized insurers, the
  680  corporation may establish additional coverage levels. However,
  681  the corporation’s quota share primary insurance coverage level
  682  may not exceed 90 percent.
  683         d. Any quota share primary insurance agreement entered into
  684  between an authorized insurer and the corporation must provide
  685  for a uniform specified percentage of coverage of hurricane
  686  losses, by county or territory as set forth by the corporation
  687  board, for all eligible risks of the authorized insurer covered
  688  under the agreement.
  689         e. Any quota share primary insurance agreement entered into
  690  between an authorized insurer and the corporation is subject to
  691  review and approval by the office. However, such agreement shall
  692  be authorized only as to insurance contracts entered into
  693  between an authorized insurer and an insured who is already
  694  insured by the corporation for wind coverage.
  695         f. For all eligible risks covered under quota share primary
  696  insurance agreements, the exposure and coverage levels for both
  697  the corporation and authorized insurers shall be reported by the
  698  corporation to the Florida Hurricane Catastrophe Fund. For all
  699  policies of eligible risks covered under such agreements, the
  700  corporation and the authorized insurer must maintain complete
  701  and accurate records for the purpose of exposure and loss
  702  reimbursement audits as required by fund rules. The corporation
  703  and the authorized insurer shall each maintain duplicate copies
  704  of policy declaration pages and supporting claims documents.
  705         g. The corporation board shall establish in its plan of
  706  operation standards for quota share agreements which ensure that
  707  there is no discriminatory application among insurers as to the
  708  terms of the agreements, pricing of the agreements, incentive
  709  provisions if any, and consideration paid for servicing policies
  710  or adjusting claims.
  711         h. The quota share primary insurance agreement between the
  712  corporation and an authorized insurer must set forth the
  713  specific terms under which coverage is provided, including, but
  714  not limited to, the sale and servicing of policies issued under
  715  the agreement by the insurance agent of the authorized insurer
  716  producing the business, the reporting of information concerning
  717  eligible risks, the payment of premium to the corporation, and
  718  arrangements for the adjustment and payment of hurricane claims
  719  incurred on eligible risks by the claims adjuster and personnel
  720  of the authorized insurer. Entering into a quota sharing
  721  insurance agreement between the corporation and an authorized
  722  insurer is voluntary and at the discretion of the authorized
  723  insurer.
  724         3. May provide that the corporation may employ or otherwise
  725  contract with individuals or other entities to provide
  726  administrative or professional services that may be appropriate
  727  to effectuate the plan. The corporation may borrow funds by
  728  issuing bonds or by incurring other indebtedness, and shall have
  729  other powers reasonably necessary to effectuate the requirements
  730  of this subsection, including, without limitation, the power to
  731  issue bonds and incur other indebtedness in order to refinance
  732  outstanding bonds or other indebtedness. The corporation may
  733  seek judicial validation of its bonds or other indebtedness
  734  under chapter 75. The corporation may issue bonds or incur other
  735  indebtedness, or have bonds issued on its behalf by a unit of
  736  local government pursuant to subparagraph (q)2. in the absence
  737  of a hurricane or other weather-related event, upon a
  738  determination by the corporation, subject to approval by the
  739  office, that such action would enable it to efficiently meet the
  740  financial obligations of the corporation and that such
  741  financings are reasonably necessary to effectuate the
  742  requirements of this subsection. The corporation may take all
  743  actions needed to facilitate tax-free status for such bonds or
  744  indebtedness, including formation of trusts or other affiliated
  745  entities. The corporation may pledge assessments, projected
  746  recoveries from the Florida Hurricane Catastrophe Fund, other
  747  reinsurance recoverables, policyholder surcharges and other
  748  surcharges, and other funds available to the corporation as
  749  security for bonds or other indebtedness. In recognition of s.
  750  10, Art. I of the State Constitution, prohibiting the impairment
  751  of obligations of contracts, it is the intent of the Legislature
  752  that no action be taken whose purpose is to impair any bond
  753  indenture or financing agreement or any revenue source committed
  754  by contract to such bond or other indebtedness.
  755         4. Must require that the corporation operate subject to the
  756  supervision and approval of a board of governors consisting of
  757  nine individuals who are residents of this state and who are
  758  from different geographical areas of the state, one of whom is
  759  appointed by the Governor and serves solely to advocate on
  760  behalf of the consumer. The appointment of a consumer
  761  representative by the Governor is deemed to be within the scope
  762  of the exemption provided in s. 112.313(7)(b) and is in addition
  763  to the appointments authorized under sub-subparagraph a.
  764         a. The Governor, the Chief Financial Officer, the President
  765  of the Senate, and the Speaker of the House of Representatives
  766  shall each appoint two members of the board. At least one of the
  767  two members appointed by each appointing officer must have
  768  demonstrated expertise in insurance and be deemed to be within
  769  the scope of the exemption provided in s. 112.313(7)(b). The
  770  Chief Financial Officer shall designate one of the appointees as
  771  chair. All board members serve at the pleasure of the appointing
  772  officer. All members of the board are subject to removal at will
  773  by the officers who appointed them. All board members, including
  774  the chair, must be appointed to serve for 3-year terms beginning
  775  annually on a date designated by the plan. However, for the
  776  first term beginning on or after July 1, 2009, each appointing
  777  officer shall appoint one member of the board for a 2-year term
  778  and one member for a 3-year term. A board vacancy shall be
  779  filled for the unexpired term by the appointing officer. The
  780  Chief Financial Officer shall appoint a technical advisory group
  781  to provide information and advice to the board in connection
  782  with the board’s duties under this subsection. The executive
  783  director and senior managers of the corporation shall be engaged
  784  by the board and serve at the pleasure of the board. Any
  785  executive director appointed on or after July 1, 2006, is
  786  subject to confirmation by the Senate. The executive director is
  787  responsible for employing other staff as the corporation may
  788  require, subject to review and concurrence by the board.
  789         b. The board shall create a Market Accountability Advisory
  790  Committee to assist the corporation in developing awareness of
  791  its rates and its customer and agent service levels in
  792  relationship to the voluntary market insurers writing similar
  793  coverage.
  794         (I) The members of the advisory committee consist of the
  795  following 11 persons, one of whom must be elected chair by the
  796  members of the committee: four representatives, one appointed by
  797  the Florida Association of Insurance Agents, one by the Florida
  798  Association of Insurance and Financial Advisors, one by the
  799  Professional Insurance Agents of Florida, and one by the Latin
  800  American Association of Insurance Agencies; three
  801  representatives appointed by the insurers with the three highest
  802  voluntary market share of residential property insurance
  803  business in the state; one representative from the Office of
  804  Insurance Regulation; one consumer appointed by the board who is
  805  insured by the corporation at the time of appointment to the
  806  committee; one representative appointed by the Florida
  807  Association of Realtors; and one representative appointed by the
  808  Florida Bankers Association. All members shall be appointed to
  809  3-year terms and may serve for consecutive terms.
  810         (II) The committee shall report to the corporation at each
  811  board meeting on insurance market issues which may include rates
  812  and rate competition with the voluntary market; service,
  813  including policy issuance, claims processing, and general
  814  responsiveness to policyholders, applicants, and agents; and
  815  matters relating to depopulation.
  816         5. Must provide a procedure for determining the eligibility
  817  of a risk for coverage, as follows:
  818         a. Subject to s. 627.3517, with respect to personal lines
  819  residential risks, if the risk is offered coverage from an
  820  authorized insurer at the insurer’s approved rate under a
  821  standard policy including wind coverage or, if consistent with
  822  the insurer’s underwriting rules as filed with the office, a
  823  basic policy including wind coverage, for a new application to
  824  the corporation for coverage, the risk is not eligible for any
  825  policy issued by the corporation unless the premium for coverage
  826  from the authorized insurer is more than 20 percent greater than
  827  the premium for comparable coverage from the corporation.
  828  Whenever an offer of coverage for a personal lines residential
  829  risk is received for a policyholder of the corporation at
  830  renewal from an authorized insurer, if the offer is equal to or
  831  less than the corporation’s renewal premium for comparable
  832  coverage, the risk is not eligible for coverage with the
  833  corporation for policies that renew before April 1, 2023; for
  834  policies that renew on or after that date, the risk is not
  835  eligible for coverage with the corporation unless the premium
  836  for coverage from the authorized insurer is more than 20 percent
  837  greater than the corporation’s renewal premium for comparable
  838  coverage. If the risk is not able to obtain such offer, the risk
  839  is eligible for a standard policy including wind coverage or a
  840  basic policy including wind coverage issued by the corporation;
  841  however, if the risk could not be insured under a standard
  842  policy including wind coverage regardless of market conditions,
  843  the risk is eligible for a basic policy including wind coverage
  844  unless rejected under subparagraph 8. However, a policyholder
  845  removed from the corporation through an assumption agreement
  846  remains eligible for coverage from the corporation until the end
  847  of the assumption period. The corporation shall determine the
  848  type of policy to be provided on the basis of objective
  849  standards specified in the underwriting manual and based on
  850  generally accepted underwriting practices. A policyholder
  851  removed from the corporation through an assumption agreement
  852  does not remain eligible for coverage from the corporation after
  853  the end of the policy term. However, any policy removed from the
  854  corporation through an assumption agreement remains on the
  855  corporation’s policy forms through the end of the policy term.
  856         (I) If the risk accepts an offer of coverage through the
  857  market assistance plan or through a mechanism established by the
  858  corporation other than a plan established by s. 627.3518, before
  859  a policy is issued to the risk by the corporation or during the
  860  first 30 days of coverage by the corporation, and the producing
  861  agent who submitted the application to the plan or to the
  862  corporation is not currently appointed by the insurer, the
  863  insurer shall:
  864         (A) Pay to the producing agent of record of the policy for
  865  the first year, an amount that is the greater of the insurer’s
  866  usual and customary commission for the type of policy written or
  867  a fee equal to the usual and customary commission of the
  868  corporation; or
  869         (B) Offer to allow the producing agent of record of the
  870  policy to continue servicing the policy for at least 1 year and
  871  offer to pay the agent the greater of the insurer’s or the
  872  corporation’s usual and customary commission for the type of
  873  policy written.
  874  
  875  If the producing agent is unwilling or unable to accept
  876  appointment, the new insurer shall pay the agent in accordance
  877  with sub-sub-sub-subparagraph (A).
  878         (II) If the corporation enters into a contractual agreement
  879  for a take-out plan, the producing agent of record of the
  880  corporation policy is entitled to retain any unearned commission
  881  on the policy, and the insurer shall:
  882         (A) Pay to the producing agent of record, for the first
  883  year, an amount that is the greater of the insurer’s usual and
  884  customary commission for the type of policy written or a fee
  885  equal to the usual and customary commission of the corporation;
  886  or
  887         (B) Offer to allow the producing agent of record to
  888  continue servicing the policy for at least 1 year and offer to
  889  pay the agent the greater of the insurer’s or the corporation’s
  890  usual and customary commission for the type of policy written.
  891  
  892  If the producing agent is unwilling or unable to accept
  893  appointment, the new insurer shall pay the agent in accordance
  894  with sub-sub-sub-subparagraph (A).
  895         b. With respect to commercial lines residential risks, for
  896  a new application to the corporation for coverage, if the risk
  897  is offered coverage under a policy including wind coverage from
  898  an authorized insurer at its approved rate, the risk is not
  899  eligible for a policy issued by the corporation unless the
  900  premium for coverage from the authorized insurer is more than 20
  901  15 percent greater than the premium for comparable coverage from
  902  the corporation. Whenever an offer of coverage for a commercial
  903  lines residential risk is received for a policyholder of the
  904  corporation at renewal from an authorized insurer, if the offer
  905  is equal to or less than the corporation’s renewal premium for
  906  comparable coverage, the risk is not eligible for coverage with
  907  the corporation unless the premium for coverage from the
  908  authorized insurer is more than 20 percent greater than the
  909  corporation’s renewal premium for comparable coverage. If the
  910  risk is not able to obtain any such offer, the risk is eligible
  911  for a policy including wind coverage issued by the corporation.
  912  However, A policyholder removed from the corporation through an
  913  assumption agreement remains eligible for coverage from the
  914  corporation until the end of the policy term. However, any
  915  policy removed from the corporation through an assumption
  916  agreement remains on the corporation’s policy forms through the
  917  end of the policy term assumption period.
  918         (I) If the risk accepts an offer of coverage through the
  919  market assistance plan or through a mechanism established by the
  920  corporation other than a plan established by s. 627.3518, before
  921  a policy is issued to the risk by the corporation or during the
  922  first 30 days of coverage by the corporation, and the producing
  923  agent who submitted the application to the plan or the
  924  corporation is not currently appointed by the insurer, the
  925  insurer shall:
  926         (A) Pay to the producing agent of record of the policy, for
  927  the first year, an amount that is the greater of the insurer’s
  928  usual and customary commission for the type of policy written or
  929  a fee equal to the usual and customary commission of the
  930  corporation; or
  931         (B) Offer to allow the producing agent of record of the
  932  policy to continue servicing the policy for at least 1 year and
  933  offer to pay the agent the greater of the insurer’s or the
  934  corporation’s usual and customary commission for the type of
  935  policy written.
  936  
  937  If the producing agent is unwilling or unable to accept
  938  appointment, the new insurer shall pay the agent in accordance
  939  with sub-sub-sub-subparagraph (A).
  940         (II) If the corporation enters into a contractual agreement
  941  for a take-out plan, the producing agent of record of the
  942  corporation policy is entitled to retain any unearned commission
  943  on the policy, and the insurer shall:
  944         (A) Pay to the producing agent of record, for the first
  945  year, an amount that is the greater of the insurer’s usual and
  946  customary commission for the type of policy written or a fee
  947  equal to the usual and customary commission of the corporation;
  948  or
  949         (B) Offer to allow the producing agent of record to
  950  continue servicing the policy for at least 1 year and offer to
  951  pay the agent the greater of the insurer’s or the corporation’s
  952  usual and customary commission for the type of policy written.
  953  
  954  If the producing agent is unwilling or unable to accept
  955  appointment, the new insurer shall pay the agent in accordance
  956  with sub-sub-sub-subparagraph (A).
  957         c. For purposes of determining comparable coverage under
  958  sub-subparagraphs a. and b., the comparison must be based on
  959  those forms and coverages that are reasonably comparable. The
  960  corporation may rely on a determination of comparable coverage
  961  and premium made by the producing agent who submits the
  962  application to the corporation, made in the agent’s capacity as
  963  the corporation’s agent. For purposes of comparing the premium
  964  for comparable coverage under sub-subparagraphs a. and b.,
  965  premium includes any surcharge or assessment that is actually
  966  applied to such policy. A comparison may be made solely of the
  967  premium with respect to the main building or structure only on
  968  the following basis: the same coverage A or other building
  969  limits; the same percentage hurricane deductible that applies on
  970  an annual basis or that applies to each hurricane for commercial
  971  residential property; the same percentage of ordinance and law
  972  coverage, if the same limit is offered by both the corporation
  973  and the authorized insurer; the same mitigation credits, to the
  974  extent the same types of credits are offered both by the
  975  corporation and the authorized insurer; the same method for loss
  976  payment, such as replacement cost or actual cash value, if the
  977  same method is offered both by the corporation and the
  978  authorized insurer in accordance with underwriting rules; and
  979  any other form or coverage that is reasonably comparable as
  980  determined by the board. If an application is submitted to the
  981  corporation for wind-only coverage on a risk that is located in
  982  an area eligible for coverage by the Florida Windstorm
  983  Underwriting Association, as that area was defined on January 1,
  984  2002 in the coastal account, the premium for the corporation’s
  985  wind-only policy plus the premium for the ex-wind policy that is
  986  offered by an authorized insurer to the applicant must be
  987  compared to the premium for multiperil coverage offered by an
  988  authorized insurer, subject to the standards for comparison
  989  specified in this subparagraph. If the corporation or the
  990  applicant requests from the authorized insurer a breakdown of
  991  the premium of the offer by types of coverage so that a
  992  comparison may be made by the corporation or its agent and the
  993  authorized insurer refuses or is unable to provide such
  994  information, the corporation may treat the offer as not being an
  995  offer of coverage from an authorized insurer at the insurer’s
  996  approved rate.
  997         6. Must include rules for classifications of risks and
  998  rates.
  999         7. Must provide that if premium and investment income:
 1000         a. For an account attributable to a particular calendar
 1001  year are in excess of projected losses and expenses for the
 1002  account attributable to that year, such excess shall be held in
 1003  surplus in the account. Such surplus must be available to defray
 1004  deficits in that account as to future years and used for that
 1005  purpose before assessing assessable insurers and assessable
 1006  insureds as to any calendar year; or
 1007         b.For the Citizens account, if established by the
 1008  corporation, which are attributable to a particular calendar
 1009  year are in excess of projected losses and expenses for the
 1010  Citizens account attributable to that year, such excess shall be
 1011  held in surplus in the Citizens account. Such surplus must be
 1012  available to defray deficits in the Citizens account as to
 1013  future years and used for that purpose before assessing
 1014  assessable insurers and assessable insureds as to any calendar
 1015  year.
 1016         8. Must provide objective criteria and procedures to be
 1017  uniformly applied to all applicants in determining whether an
 1018  individual risk is so hazardous as to be uninsurable. In making
 1019  this determination and in establishing the criteria and
 1020  procedures, the following must be considered:
 1021         a. Whether the likelihood of a loss for the individual risk
 1022  is substantially higher than for other risks of the same class;
 1023  and
 1024         b. Whether the uncertainty associated with the individual
 1025  risk is such that an appropriate premium cannot be determined.
 1026  
 1027  The acceptance or rejection of a risk by the corporation shall
 1028  be construed as the private placement of insurance, and the
 1029  provisions of chapter 120 do not apply.
 1030         9. Must provide that the corporation make its best efforts
 1031  to procure catastrophe reinsurance at reasonable rates, to cover
 1032  its projected 100-year probable maximum loss as determined by
 1033  the board of governors. If catastrophe reinsurance is not
 1034  available at reasonable rates, the corporation need not purchase
 1035  it, but the corporation shall include the costs of reinsurance
 1036  to cover its projected 100-year probable maximum loss in its
 1037  rate calculations even if it does not purchase catastrophe
 1038  reinsurance.
 1039         10. The policies issued by the corporation must provide
 1040  that if the corporation or the market assistance plan obtains an
 1041  offer from an authorized insurer to cover the risk at its
 1042  approved rates, the risk is no longer eligible for renewal
 1043  through the corporation, except as otherwise provided in this
 1044  subsection.
 1045         11. Corporation policies and applications must include a
 1046  notice that the corporation policy could, under this section, be
 1047  replaced with a policy issued by an authorized insurer which
 1048  does not provide coverage identical to the coverage provided by
 1049  the corporation. The notice must also specify that acceptance of
 1050  corporation coverage creates a conclusive presumption that the
 1051  applicant or policyholder is aware of this potential.
 1052         12. May establish, subject to approval by the office,
 1053  different eligibility requirements and operational procedures
 1054  for any line or type of coverage for any specified county or
 1055  area if the board determines that such changes are justified due
 1056  to the voluntary market being sufficiently stable and
 1057  competitive in such area or for such line or type of coverage
 1058  and that consumers who, in good faith, are unable to obtain
 1059  insurance through the voluntary market through ordinary methods
 1060  continue to have access to coverage from the corporation. If
 1061  coverage is sought in connection with a real property transfer,
 1062  the requirements and procedures may not provide an effective
 1063  date of coverage later than the date of the closing of the
 1064  transfer as established by the transferor, the transferee, and,
 1065  if applicable, the lender.
 1066         13. Must provide that:,
 1067         a. With respect to the coastal account, any assessable
 1068  insurer with a surplus as to policyholders of $25 million or
 1069  less writing 25 percent or more of its total countrywide
 1070  property insurance premiums in this state may petition the
 1071  office, within the first 90 days of each calendar year, to
 1072  qualify as a limited apportionment company. A regular assessment
 1073  levied by the corporation on a limited apportionment company for
 1074  a deficit incurred by the corporation for the coastal account
 1075  may be paid to the corporation on a monthly basis as the
 1076  assessments are collected by the limited apportionment company
 1077  from its insureds, but a limited apportionment company must
 1078  begin collecting the regular assessments not later than 90 days
 1079  after the regular assessments are levied by the corporation, and
 1080  the regular assessments must be paid in full within 15 months
 1081  after being levied by the corporation. A limited apportionment
 1082  company shall collect from its policyholders any emergency
 1083  assessment imposed under sub-subparagraph (b)3.e. (b)3.d. The
 1084  plan must provide that, if the office determines that any
 1085  regular assessment will result in an impairment of the surplus
 1086  of a limited apportionment company, the office may direct that
 1087  all or part of such assessment be deferred as provided in
 1088  subparagraph (q)4. However, an emergency assessment to be
 1089  collected from policyholders under sub-subparagraph (b)3.e.
 1090  (b)3.d. may not be limited or deferred; or
 1091         b.With respect to the Citizens account, if established by
 1092  the corporation pursuant to sub-subparagraph (b)2.b., any
 1093  assessable insurer with a surplus as to policyholders of $25
 1094  million or less and writing 25 percent or more of its total
 1095  countrywide property insurance premiums in this state may
 1096  petition the office, within the first 90 days of each calendar
 1097  year, to qualify as a limited apportionment company. A limited
 1098  apportionment company shall collect from its policyholders any
 1099  emergency assessment imposed under sub-subparagraph (b)5.c. An
 1100  emergency assessment to be collected from policyholders under
 1101  sub-subparagraph (b)5.c. may not be limited or deferred.
 1102         14. Must provide that the corporation appoint as its
 1103  licensed agents only those agents who throughout such
 1104  appointments also hold an appointment as defined in s. 626.015
 1105  by an insurer who is authorized to write and is actually writing
 1106  or renewing personal lines residential property coverage,
 1107  commercial residential property coverage, or commercial
 1108  nonresidential property coverage within the state.
 1109         15. Must provide a premium payment plan option to its
 1110  policyholders which, at a minimum, allows for quarterly and
 1111  semiannual payment of premiums. A monthly payment plan may, but
 1112  is not required to, be offered.
 1113         16. Must limit coverage on mobile homes or manufactured
 1114  homes built before 1994 to actual cash value of the dwelling
 1115  rather than replacement costs of the dwelling.
 1116         17. Must provide coverage for manufactured or mobile home
 1117  dwellings. Such coverage must also include the following
 1118  attached structures:
 1119         a. Screened enclosures that are aluminum framed or screened
 1120  enclosures that are not covered by the same or substantially the
 1121  same materials as those of the primary dwelling;
 1122         b. Carports that are aluminum or carports that are not
 1123  covered by the same or substantially the same materials as those
 1124  of the primary dwelling; and
 1125         c. Patios that have a roof covering that is constructed of
 1126  materials that are not the same or substantially the same
 1127  materials as those of the primary dwelling.
 1128  
 1129  The corporation shall make available a policy for mobile homes
 1130  or manufactured homes for a minimum insured value of at least
 1131  $3,000.
 1132         18. May provide such limits of coverage as the board
 1133  determines, consistent with the requirements of this subsection.
 1134         19. May require commercial property to meet specified
 1135  hurricane mitigation construction features as a condition of
 1136  eligibility for coverage.
 1137         20. Must provide that new or renewal policies issued by the
 1138  corporation on or after January 1, 2012, which cover sinkhole
 1139  loss do not include coverage for any loss to appurtenant
 1140  structures, driveways, sidewalks, decks, or patios that are
 1141  directly or indirectly caused by sinkhole activity. The
 1142  corporation shall exclude such coverage using a notice of
 1143  coverage change, which may be included with the policy renewal,
 1144  and not by issuance of a notice of nonrenewal of the excluded
 1145  coverage upon renewal of the current policy.
 1146         21.a. As of January 1, 2012, unless the Citizens account
 1147  has been established pursuant to sub-subparagraph (b)2.b., must
 1148  require that the agent obtain from an applicant for coverage
 1149  from the corporation an acknowledgment signed by the applicant,
 1150  which includes, at a minimum, the following statement:
 1151  
 1152                ACKNOWLEDGMENT OF POTENTIAL SURCHARGE              
 1153                      AND ASSESSMENT LIABILITY:                    
 1154  
 1155         1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
 1156  CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
 1157  DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
 1158  MY POLICY COULD BE SUBJECT TO SURCHARGES, WHICH WILL BE DUE AND
 1159  PAYABLE UPON RENEWAL, CANCELLATION, OR TERMINATION OF THE
 1160  POLICY, AND THAT THE SURCHARGES COULD BE AS HIGH AS 45 PERCENT
 1161  OF MY PREMIUM, OR A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA
 1162  LEGISLATURE.
 1163         2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
 1164  SURCHARGE, WHICH COULD BE AS HIGH AS 45 PERCENT OF MY PREMIUM,
 1165  BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND THAT TO
 1166  BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN
 1167  PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR RENEWING COVERAGE
 1168  WITH CITIZENS. I UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES
 1169  ARE REGULATED AND APPROVED BY THE STATE.
 1170         3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
 1171  ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
 1172  INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
 1173  FLORIDA LEGISLATURE.
 1174         4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
 1175  CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
 1176  STATE OF FLORIDA.
 1177  
 1178         b.The corporation must require, if it has established the
 1179  Citizens account pursuant to sub-subparagraph (b)2.b., that the
 1180  agent obtain from an applicant for coverage from the corporation
 1181  the following acknowledgment signed by the applicant, which
 1182  includes, at a minimum, the following statement:
 1183  
 1184                ACKNOWLEDGMENT OF POTENTIAL SURCHARGE              
 1185                      AND ASSESSMENT LIABILITY:                    
 1186  
 1187         1.AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
 1188  CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
 1189  DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
 1190  MY POLICY COULD BE SUBJECT TO SURCHARGES AND ASSESSMENTS, WHICH
 1191  WILL BE DUE AND PAYABLE UPON RENEWAL, CANCELLATION, OR
 1192  TERMINATION OF THE POLICY, AND THAT THE SURCHARGES AND
 1193  ASSESSMENTS COULD BE AS HIGH AS 25 PERCENT OF MY PREMIUM, OR A
 1194  DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA LEGISLATURE.
 1195         2.I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
 1196  SURCHARGE, WHICH COULD BE AS HIGH AS 15 PERCENT OF MY PREMIUM,
 1197  BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND THAT TO
 1198  BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN
 1199  PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR RENEWING COVERAGE
 1200  WITH CITIZENS. I UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES
 1201  ARE REGULATED AND APPROVED BY THE STATE.
 1202         3.I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
 1203  ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
 1204  INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
 1205  FLORIDA LEGISLATURE.
 1206         4.I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
 1207  CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
 1208  STATE OF FLORIDA.
 1209  
 1210         c.a. The corporation shall maintain, in electronic format
 1211  or otherwise, a copy of the applicant’s signed acknowledgment
 1212  and provide a copy of the statement to the policyholder as part
 1213  of the first renewal after the effective date of sub
 1214  subparagraph a. or sub-subparagraph b., as applicable this
 1215  subparagraph.
 1216         d.b. The signed acknowledgment form creates a conclusive
 1217  presumption that the policyholder understood and accepted his or
 1218  her potential surcharge and assessment liability as a
 1219  policyholder of the corporation.
 1220         (n)1. Rates for coverage provided by the corporation must
 1221  be actuarially sound pursuant and subject to s. 627.062 and not
 1222  competitive with approved rates charged in the admitted
 1223  voluntary market so that the corporation functions as a residual
 1224  market mechanism to provide insurance only when insurance cannot
 1225  be procured in the voluntary market, except as otherwise
 1226  provided in this paragraph. The office shall provide the
 1227  corporation such information as would be necessary to determine
 1228  whether rates are competitive. The corporation shall file its
 1229  recommended rates with the office at least annually. The
 1230  corporation shall provide any additional information regarding
 1231  the rates which the office requires. The office shall consider
 1232  the recommendations of the board and issue a final order
 1233  establishing the rates for the corporation within 45 days after
 1234  the recommended rates are filed. The corporation may not pursue
 1235  an administrative challenge or judicial review of the final
 1236  order of the office.
 1237         2. In addition to the rates otherwise determined pursuant
 1238  to this paragraph, the corporation shall impose and collect an
 1239  amount equal to the premium tax provided in s. 624.509 to
 1240  augment the financial resources of the corporation.
 1241         3. After the public hurricane loss-projection model under
 1242  s. 627.06281 has been found to be accurate and reliable by the
 1243  Florida Commission on Hurricane Loss Projection Methodology, the
 1244  model shall be considered when establishing the windstorm
 1245  portion of the corporation’s rates. The corporation may use the
 1246  public model results in combination with the results of private
 1247  models to calculate rates for the windstorm portion of the
 1248  corporation’s rates. This subparagraph does not require or allow
 1249  the corporation to adopt rates lower than the rates otherwise
 1250  required or allowed by this paragraph.
 1251         4. The corporation must make a recommended actuarially
 1252  sound rate filing for each personal and commercial line of
 1253  business it writes.
 1254         5. Notwithstanding the board’s recommended rates and the
 1255  office’s final order regarding the corporation’s filed rates
 1256  under subparagraph 1., the corporation shall annually implement
 1257  a rate increase which, except for sinkhole coverage, does not
 1258  exceed the following for any single policy issued by the
 1259  corporation, excluding coverage changes and surcharges:
 1260         a. Eleven percent for 2022.
 1261         b. Twelve percent for 2023.
 1262         b.c. Thirteen percent for 2024.
 1263         c.d. Fourteen percent for 2025.
 1264         d.e. Fifteen percent for 2026 and all subsequent years.
 1265         6. The corporation may also implement an increase to
 1266  reflect the effect on the corporation of the cash buildup factor
 1267  pursuant to s. 215.555(5)(b).
 1268         7. The corporation’s implementation of rates as prescribed
 1269  in subparagraphs 5. and 8. subparagraph 5. shall cease for any
 1270  line of business written by the corporation upon the
 1271  corporation’s implementation of actuarially sound rates.
 1272  Thereafter, the corporation shall annually make a recommended
 1273  actuarially sound rate filing that is not competitive with
 1274  approved rates in the admitted voluntary market for each
 1275  commercial and personal line of business the corporation writes.
 1276         8.For any new or renewal personal lines policy written on
 1277  or after November 1, 2023, which does not cover a primary
 1278  residence, the rate to be applied in calculating premium is not
 1279  subject to the rate increase limitations in subparagraph 5.
 1280  However, the policyholder may not be charged more than 50
 1281  percent above, and may not be charged less than, the established
 1282  rate for the corporation which was in effect 1 year before the
 1283  date of the application.
 1284         9. As used in this paragraph, the term primary residence”
 1285  means the dwelling that is the policyholder’s primary home or is
 1286  a rental property that is the primary home of the tenant, and
 1287  which the policyholder or tenant occupies for more than 9 months
 1288  of each year.
 1289         (o) If coverage in an account, or the Citizens account if
 1290  established by the corporation, is deactivated pursuant to
 1291  paragraph (p), coverage through the corporation shall be
 1292  reactivated by order of the office only under one of the
 1293  following circumstances:
 1294         1. If the market assistance plan receives a minimum of 100
 1295  applications for coverage within a 3-month period, or 200
 1296  applications for coverage within a 1-year period or less for
 1297  residential coverage, unless the market assistance plan provides
 1298  a quotation from admitted carriers at their filed rates for at
 1299  least 90 percent of such applicants. Any market assistance plan
 1300  application that is rejected because an individual risk is so
 1301  hazardous as to be uninsurable using the criteria specified in
 1302  subparagraph (c)8. shall not be included in the minimum
 1303  percentage calculation provided herein. In the event that there
 1304  is a legal or administrative challenge to a determination by the
 1305  office that the conditions of this subparagraph have been met
 1306  for eligibility for coverage in the corporation, any eligible
 1307  risk may obtain coverage during the pendency of such challenge.
 1308         2. In response to a state of emergency declared by the
 1309  Governor under s. 252.36, the office may activate coverage by
 1310  order for the period of the emergency upon a finding by the
 1311  office that the emergency significantly affects the availability
 1312  of residential property insurance.
 1313         (p)1. The corporation shall file with the office quarterly
 1314  statements of financial condition, an annual statement of
 1315  financial condition, and audited financial statements in the
 1316  manner prescribed by law. In addition, the corporation shall
 1317  report to the office monthly on the types, premium, exposure,
 1318  and distribution by county of its policies in force, and shall
 1319  submit other reports as the office requires to carry out its
 1320  oversight of the corporation.
 1321         2. The activities of the corporation shall be reviewed at
 1322  least annually by the office to determine whether coverage shall
 1323  be deactivated in an account, or in the Citizens account if
 1324  established by the corporation, on the basis that the conditions
 1325  giving rise to its activation no longer exist.
 1326         (q)1. The corporation shall certify to the office its needs
 1327  for annual assessments as to a particular calendar year, and for
 1328  any interim assessments that it deems to be necessary to sustain
 1329  operations as to a particular year pending the receipt of annual
 1330  assessments. Upon verification, the office shall approve such
 1331  certification, and the corporation shall levy such annual or
 1332  interim assessments. Such assessments shall be prorated, if
 1333  authority to levy exists, as provided in paragraph (b). The
 1334  corporation shall take all reasonable and prudent steps
 1335  necessary to collect the amount of assessments due from each
 1336  assessable insurer, including, if prudent, filing suit to
 1337  collect the assessments, and the office may provide such
 1338  assistance to the corporation it deems appropriate. If the
 1339  corporation is unable to collect an assessment from any
 1340  assessable insurer, the uncollected assessments shall be levied
 1341  as an additional assessment against the assessable insurers and
 1342  any assessable insurer required to pay an additional assessment
 1343  as a result of such failure to pay shall have a cause of action
 1344  against such nonpaying assessable insurer. Assessments shall be
 1345  included as an appropriate factor in the making of rates. The
 1346  failure of a surplus lines agent to collect and remit any
 1347  regular or emergency assessment levied by the corporation is
 1348  considered to be a violation of s. 626.936 and subjects the
 1349  surplus lines agent to the penalties provided in that section.
 1350         2. The governing body of any unit of local government, any
 1351  residents of which are insured by the corporation, may issue
 1352  bonds as defined in s. 125.013 or s. 166.101 from time to time
 1353  to fund an assistance program, in conjunction with the
 1354  corporation, for the purpose of defraying deficits of the
 1355  corporation. In order to avoid needless and indiscriminate
 1356  proliferation, duplication, and fragmentation of such assistance
 1357  programs, any unit of local government, any residents of which
 1358  are insured by the corporation, may provide for the payment of
 1359  losses, regardless of whether or not the losses occurred within
 1360  or outside of the territorial jurisdiction of the local
 1361  government. Revenue bonds under this subparagraph may not be
 1362  issued until validated pursuant to chapter 75, unless a state of
 1363  emergency is declared by executive order or proclamation of the
 1364  Governor pursuant to s. 252.36 making such findings as are
 1365  necessary to determine that it is in the best interests of, and
 1366  necessary for, the protection of the public health, safety, and
 1367  general welfare of residents of this state and declaring it an
 1368  essential public purpose to permit certain municipalities or
 1369  counties to issue such bonds as will permit relief to claimants
 1370  and policyholders of the corporation. Any such unit of local
 1371  government may enter into such contracts with the corporation
 1372  and with any other entity created pursuant to this subsection as
 1373  are necessary to carry out this paragraph. Any bonds issued
 1374  under this subparagraph shall be payable from and secured by
 1375  moneys received by the corporation from emergency assessments
 1376  under sub-subparagraph (b)3.e. (b)3.d., and assigned and pledged
 1377  to or on behalf of the unit of local government for the benefit
 1378  of the holders of such bonds. The funds, credit, property, and
 1379  taxing power of the state or of the unit of local government
 1380  shall not be pledged for the payment of such bonds.
 1381         3.a. The corporation shall adopt one or more programs
 1382  subject to approval by the office for the reduction of both new
 1383  and renewal writings in the corporation. Beginning January 1,
 1384  2008, any program the corporation adopts for the payment of
 1385  bonuses to an insurer for each risk the insurer removes from the
 1386  corporation shall comply with s. 627.3511(2) and may not exceed
 1387  the amount referenced in s. 627.3511(2) for each risk removed.
 1388  The corporation may consider any prudent and not unfairly
 1389  discriminatory approach to reducing corporation writings, and
 1390  may adopt a credit against assessment liability or other
 1391  liability that provides an incentive for insurers to take risks
 1392  out of the corporation and to keep risks out of the corporation
 1393  by maintaining or increasing voluntary writings in counties or
 1394  areas in which corporation risks are highly concentrated and a
 1395  program to provide a formula under which an insurer voluntarily
 1396  taking risks out of the corporation by maintaining or increasing
 1397  voluntary writings will be relieved wholly or partially from
 1398  assessments under sub-subparagraph (b)3.a. However, any “take
 1399  out bonus” or payment to an insurer must be conditioned on the
 1400  property being insured for at least 5 years by the insurer,
 1401  unless canceled or nonrenewed by the policyholder. If the policy
 1402  is canceled or nonrenewed by the policyholder before the end of
 1403  the 5-year period, the amount of the take-out bonus must be
 1404  prorated for the time period the policy was insured. When the
 1405  corporation enters into a contractual agreement for a take-out
 1406  plan, the producing agent of record of the corporation policy is
 1407  entitled to retain any unearned commission on such policy, and
 1408  the insurer shall either:
 1409         (I) Pay to the producing agent of record of the policy, for
 1410  the first year, an amount which is the greater of the insurer’s
 1411  usual and customary commission for the type of policy written or
 1412  a policy fee equal to the usual and customary commission of the
 1413  corporation; or
 1414         (II) Offer to allow the producing agent of record of the
 1415  policy to continue servicing the policy for a period of not less
 1416  than 1 year and offer to pay the agent the insurer’s usual and
 1417  customary commission for the type of policy written. If the
 1418  producing agent is unwilling or unable to accept appointment by
 1419  the new insurer, the new insurer shall pay the agent in
 1420  accordance with sub-sub-subparagraph (I).
 1421         b. Any credit or exemption from regular assessments adopted
 1422  under this subparagraph shall last no longer than the 3 years
 1423  following the cancellation or expiration of the policy by the
 1424  corporation. With the approval of the office, the board may
 1425  extend such credits for an additional year if the insurer
 1426  guarantees an additional year of renewability for all policies
 1427  removed from the corporation, or for 2 additional years if the
 1428  insurer guarantees 2 additional years of renewability for all
 1429  policies so removed.
 1430         c. There shall be no credit, limitation, exemption, or
 1431  deferment from emergency assessments to be collected from
 1432  policyholders pursuant to sub-subparagraph (b)3.e. or sub
 1433  subparagraph (b)5.c. (b)3.d.
 1434         4. The plan shall provide for the deferment, in whole or in
 1435  part, of the assessment of an assessable insurer, other than an
 1436  emergency assessment collected from policyholders pursuant to
 1437  sub-subparagraph (b)3.e. or sub-subparagraph (b)5.c. (b)3.d., if
 1438  the office finds that payment of the assessment would endanger
 1439  or impair the solvency of the insurer. In the event an
 1440  assessment against an assessable insurer is deferred in whole or
 1441  in part, the amount by which such assessment is deferred may be
 1442  assessed against the other assessable insurers in a manner
 1443  consistent with the basis for assessments set forth in paragraph
 1444  (b).
 1445         5. Effective July 1, 2007, in order to evaluate the costs
 1446  and benefits of approved take-out plans, if the corporation pays
 1447  a bonus or other payment to an insurer for an approved take-out
 1448  plan, it shall maintain a record of the address or such other
 1449  identifying information on the property or risk removed in order
 1450  to track if and when the property or risk is later insured by
 1451  the corporation.
 1452         6. Any policy taken out, assumed, or removed from the
 1453  corporation is, as of the effective date of the take-out,
 1454  assumption, or removal, direct insurance issued by the insurer
 1455  and not by the corporation, even if the corporation continues to
 1456  service the policies. This subparagraph applies to policies of
 1457  the corporation and not policies taken out, assumed, or removed
 1458  from any other entity.
 1459         7. For a policy taken out, assumed, or removed from the
 1460  corporation, the insurer may, for a period of no more than 3
 1461  years, continue to use any of the corporation’s policy forms or
 1462  endorsements that apply to the policy taken out, removed, or
 1463  assumed without obtaining approval from the office for use of
 1464  such policy form or endorsement.
 1465         (v)1. Effective July 1, 2002, policies of the Residential
 1466  Property and Casualty Joint Underwriting Association become
 1467  policies of the corporation. All obligations, rights, assets and
 1468  liabilities of the association, including bonds, note and debt
 1469  obligations, and the financing documents pertaining to them
 1470  become those of the corporation as of July 1, 2002. The
 1471  corporation is not required to issue endorsements or
 1472  certificates of assumption to insureds during the remaining term
 1473  of in-force transferred policies.
 1474         2. Effective July 1, 2002, policies of the Florida
 1475  Windstorm Underwriting Association are transferred to the
 1476  corporation and become policies of the corporation. All
 1477  obligations, rights, assets, and liabilities of the association,
 1478  including bonds, note and debt obligations, and the financing
 1479  documents pertaining to them are transferred to and assumed by
 1480  the corporation on July 1, 2002. The corporation is not required
 1481  to issue endorsements or certificates of assumption to insureds
 1482  during the remaining term of in-force transferred policies.
 1483         3. The Florida Windstorm Underwriting Association and the
 1484  Residential Property and Casualty Joint Underwriting Association
 1485  shall take all actions necessary to further evidence the
 1486  transfers and provide the documents and instruments of further
 1487  assurance as may reasonably be requested by the corporation for
 1488  that purpose. The corporation shall execute assumptions and
 1489  instruments as the trustees or other parties to the financing
 1490  documents of the Florida Windstorm Underwriting Association or
 1491  the Residential Property and Casualty Joint Underwriting
 1492  Association may reasonably request to further evidence the
 1493  transfers and assumptions, which transfers and assumptions,
 1494  however, are effective on the date provided under this paragraph
 1495  whether or not, and regardless of the date on which, the
 1496  assumptions or instruments are executed by the corporation.
 1497  Subject to the relevant financing documents pertaining to their
 1498  outstanding bonds, notes, indebtedness, or other financing
 1499  obligations, the moneys, investments, receivables, choses in
 1500  action, and other intangibles of the Florida Windstorm
 1501  Underwriting Association shall be credited to the coastal
 1502  account of the corporation, and those of the personal lines
 1503  residential coverage account and the commercial lines
 1504  residential coverage account of the Residential Property and
 1505  Casualty Joint Underwriting Association shall be credited to the
 1506  personal lines account and the commercial lines account,
 1507  respectively, of the corporation.
 1508         4. Effective July 1, 2002, a new applicant for property
 1509  insurance coverage who would otherwise have been eligible for
 1510  coverage in the Florida Windstorm Underwriting Association is
 1511  eligible for coverage from the corporation as provided in this
 1512  subsection.
 1513         5. The transfer of all policies, obligations, rights,
 1514  assets, and liabilities from the Florida Windstorm Underwriting
 1515  Association to the corporation and the renaming of the
 1516  Residential Property and Casualty Joint Underwriting Association
 1517  as the corporation does not affect the coverage with respect to
 1518  covered policies as defined in s. 215.555(2)(c) provided to
 1519  these entities by the Florida Hurricane Catastrophe Fund. The
 1520  coverage provided by the fund to the Florida Windstorm
 1521  Underwriting Association based on its exposures as of June 30,
 1522  2002, and each June 30 thereafter, unless the corporation has
 1523  established the Citizens account, shall be redesignated as
 1524  coverage for the coastal account of the corporation.
 1525  Notwithstanding any other provision of law, the coverage
 1526  provided by the fund to the Residential Property and Casualty
 1527  Joint Underwriting Association based on its exposures as of June
 1528  30, 2002, and each June 30 thereafter, unless the corporation
 1529  has established the Citizens account, shall be transferred to
 1530  the personal lines account and the commercial lines account of
 1531  the corporation. Notwithstanding any other provision of law, the
 1532  coastal account, unless the corporation has established the
 1533  Citizens account, shall be treated, for all Florida Hurricane
 1534  Catastrophe Fund purposes, as if it were a separate
 1535  participating insurer with its own exposures, reimbursement
 1536  premium, and loss reimbursement. Likewise, the personal lines
 1537  and commercial lines accounts, unless the corporation has
 1538  established the Citizens account, shall be viewed together, for
 1539  all fund purposes, as if the two accounts were one and represent
 1540  a single, separate participating insurer with its own exposures,
 1541  reimbursement premium, and loss reimbursement. The coverage
 1542  provided by the fund to the corporation shall constitute and
 1543  operate as a full transfer of coverage from the Florida
 1544  Windstorm Underwriting Association and Residential Property and
 1545  Casualty Joint Underwriting Association to the corporation.
 1546         (w) Notwithstanding any other provision of law:
 1547         1. The pledge or sale of, the lien upon, and the security
 1548  interest in any rights, revenues, or other assets of the
 1549  corporation created or purported to be created pursuant to any
 1550  financing documents to secure any bonds or other indebtedness of
 1551  the corporation shall be and remain valid and enforceable,
 1552  notwithstanding the commencement of and during the continuation
 1553  of, and after, any rehabilitation, insolvency, liquidation,
 1554  bankruptcy, receivership, conservatorship, reorganization, or
 1555  similar proceeding against the corporation under the laws of
 1556  this state.
 1557         2. The proceeding does not relieve the corporation of its
 1558  obligation, or otherwise affect its ability to perform its
 1559  obligation, to continue to collect, or levy and collect,
 1560  assessments, policyholder surcharges or other surcharges under
 1561  sub-subparagraph (b)3.j. (b)3.i., or any other rights, revenues,
 1562  or other assets of the corporation pledged pursuant to any
 1563  financing documents.
 1564         3. Each such pledge or sale of, lien upon, and security
 1565  interest in, including the priority of such pledge, lien, or
 1566  security interest, any such assessments, policyholder surcharges
 1567  or other surcharges, or other rights, revenues, or other assets
 1568  which are collected, or levied and collected, after the
 1569  commencement of and during the pendency of, or after, any such
 1570  proceeding shall continue unaffected by such proceeding. As used
 1571  in this subsection, the term “financing documents” means any
 1572  agreement or agreements, instrument or instruments, or other
 1573  document or documents now existing or hereafter created
 1574  evidencing any bonds or other indebtedness of the corporation or
 1575  pursuant to which any such bonds or other indebtedness has been
 1576  or may be issued and pursuant to which any rights, revenues, or
 1577  other assets of the corporation are pledged or sold to secure
 1578  the repayment of such bonds or indebtedness, together with the
 1579  payment of interest on such bonds or such indebtedness, or the
 1580  payment of any other obligation or financial product, as defined
 1581  in the plan of operation of the corporation related to such
 1582  bonds or indebtedness.
 1583         4. Any such pledge or sale of assessments, revenues,
 1584  contract rights, or other rights or assets of the corporation
 1585  shall constitute a lien and security interest, or sale, as the
 1586  case may be, that is immediately effective and attaches to such
 1587  assessments, revenues, or contract rights or other rights or
 1588  assets, whether or not imposed or collected at the time the
 1589  pledge or sale is made. Any such pledge or sale is effective,
 1590  valid, binding, and enforceable against the corporation or other
 1591  entity making such pledge or sale, and valid and binding against
 1592  and superior to any competing claims or obligations owed to any
 1593  other person or entity, including policyholders in this state,
 1594  asserting rights in any such assessments, revenues, or contract
 1595  rights or other rights or assets to the extent set forth in and
 1596  in accordance with the terms of the pledge or sale contained in
 1597  the applicable financing documents, whether or not any such
 1598  person or entity has notice of such pledge or sale and without
 1599  the need for any physical delivery, recordation, filing, or
 1600  other action.
 1601         5. As long as the corporation has any bonds outstanding,
 1602  the corporation may not file a voluntary petition under chapter
 1603  9 of the federal Bankruptcy Code or such corresponding chapter
 1604  or sections as may be in effect, from time to time, and a public
 1605  officer or any organization, entity, or other person may not
 1606  authorize the corporation to be or become a debtor under chapter
 1607  9 of the federal Bankruptcy Code or such corresponding chapter
 1608  or sections as may be in effect, from time to time, during any
 1609  such period.
 1610         6. If ordered by a court of competent jurisdiction, the
 1611  corporation may assume policies or otherwise provide coverage
 1612  for policyholders of an insurer placed in liquidation under
 1613  chapter 631, under such forms, rates, terms, and conditions as
 1614  the corporation deems appropriate, subject to approval by the
 1615  office.
 1616         (aa) Except as otherwise provided in this paragraph, the
 1617  corporation shall not require the securing and maintaining of
 1618  flood insurance as a condition of coverage of a personal lines
 1619  residential risk. if The insured or applicant must execute
 1620  executes a form approved by the office affirming that flood
 1621  insurance is not provided by the corporation and that if flood
 1622  insurance is not secured by the applicant or insured from an
 1623  insurer other than the corporation and in addition to coverage
 1624  by the corporation, the risk will not be eligible for coverage
 1625  by the corporation covered for flood damage. A corporation
 1626  policyholder electing not to secure flood insurance and
 1627  executing a form as provided herein making a claim for water
 1628  damage against the corporation shall have the burden of proving
 1629  the damage was not caused by flooding. Notwithstanding other
 1630  provisions of this subsection, The corporation may deny coverage
 1631  of a personal lines residential risk to an applicant or insured
 1632  who refuses to secure and maintain flood insurance execute the
 1633  form described herein. The requirement to purchase flood
 1634  insurance shall be implemented as follows:
 1635         1.Except as provided in subparagraphs 2. and 3., all
 1636  personal lines residential policyholders must have flood
 1637  coverage in place for policies effective on or after:
 1638         a.January 1, 2024, for property valued at $600,000 or
 1639  more.
 1640         b.January 1, 2025, for property valued at $500,000 or
 1641  more.
 1642         c.January 1, 2026, for property valued at $400,000 or
 1643  more.
 1644         d.January 1, 2027, for all other personal lines
 1645  residential property insured by the corporation.
 1646         2.All personal lines residential policyholders whose
 1647  property insured by the corporation is located within the
 1648  special flood hazard area defined by the Federal Emergency
 1649  Management Agency must have flood coverage in place:
 1650         a.At the time of initial policy issuance for all new
 1651  personal lines residential policies issued by the corporation on
 1652  or after April 1, 2023.
 1653         b.By the time of the policy renewal for allpersonal lines
 1654  residential policies renewing on or after July 1, 2023.
 1655         3.Policyholders whose policies issued by the corporation
 1656  do not provide coverage for the peril of wind are not required
 1657  to purchase flood insurance as a condition for maintaining their
 1658  policies with the corporation.
 1659  
 1660  The flood insurance required under this paragraph must meet, at
 1661  a minimum, the coverage available from the National Flood
 1662  Insurance Program or the requirements of subparagraphs s.
 1663  627.715(1)(a)1., 2., and 3.
 1664         (ii) The corporation shall revise the programs adopted
 1665  pursuant to sub-subparagraph (q)3.a. for personal lines
 1666  residential policies to maximize policyholder options and
 1667  encourage increased participation by insurers and agents. After
 1668  January 1, 2017, a policy may not be taken out of the
 1669  corporation unless the provisions of this paragraph are met.
 1670         1. The corporation must publish a periodic schedule of
 1671  cycles during which an insurer may identify, and notify the
 1672  corporation of, policies that the insurer is requesting to take
 1673  out. A request must include a description of the coverage
 1674  offered and an estimated premium and must be submitted to the
 1675  corporation in a form and manner prescribed by the corporation.
 1676         2. The corporation must maintain and make available to the
 1677  agent of record a consolidated list of all insurers requesting
 1678  to take out a policy. The list must include a description of the
 1679  coverage offered and the estimated premium for each take-out
 1680  request.
 1681         3. If a policyholder receives a take-out offer from an
 1682  authorized insurer, the risk is no longer eligible for coverage
 1683  with the corporation unless the premium for coverage from the
 1684  authorized insurer is more 20 percent greater than the renewal
 1685  premium for comparable coverage from the corporation pursuant to
 1686  sub-subparagraph (c)5.c. This subparagraph applies to take-out
 1687  offers that are part of an application to participate in
 1688  depopulation submitted to the office on or after January 1,
 1689  2023.
 1690         4. The corporation must provide written notice to the
 1691  policyholder and the agent of record regarding all insurers
 1692  requesting to take out the policy and regarding the
 1693  policyholder’s option to accept a take-out offer or to reject
 1694  all take-out offers and to remain with the corporation. The
 1695  notice must be in a format prescribed by the corporation and
 1696  include, for each take-out offer:
 1697         a. The amount of the estimated premium;
 1698         b. A description of the coverage; and
 1699         c. A comparison of the estimated premium and coverage
 1700  offered by the insurer to the estimated premium and coverage
 1701  provided by the corporation.
 1702         (kk)A corporation policyholder making a claim for water
 1703  damage against the corporation has the burden of proving that
 1704  the damage was not caused by flooding.
 1705         Section 9. Paragraph (s) of subsection (6) of section
 1706  627.351, Florida Statutes, is amended to read:
 1707         627.351 Insurance risk apportionment plans.—
 1708         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
 1709         (s)1. There shall be no liability on the part of, and no
 1710  cause of action of any nature shall arise against, any
 1711  assessable insurer or its agents or employees, the corporation
 1712  or its agents or employees, members of the board of governors or
 1713  their respective designees at a board meeting, corporation
 1714  committee members, or the office or its representatives, for any
 1715  action taken by them in the performance of their duties or
 1716  responsibilities under this subsection. Such immunity does not
 1717  apply to:
 1718         a. Any of the foregoing persons or entities for any willful
 1719  tort;
 1720         b. The corporation or its producing agents for breach of
 1721  any contract or agreement pertaining to insurance coverage;
 1722         c. The corporation with respect to issuance or payment of
 1723  debt;
 1724         d. Any assessable insurer with respect to any action to
 1725  enforce an assessable insurer’s obligations to the corporation
 1726  under this subsection; or
 1727         e. The corporation in any pending or future action for
 1728  breach of contract or for benefits under a policy issued by the
 1729  corporation; in any such action, the corporation shall be liable
 1730  to the policyholders and beneficiaries for attorney’s fees under
 1731  s. 627.428.
 1732         2. The corporation shall manage its claim employees,
 1733  independent adjusters, and others who handle claims to ensure
 1734  they carry out the corporation’s duty to its policyholders to
 1735  handle claims carefully, timely, diligently, and in good faith,
 1736  balanced against the corporation’s duty to the state to manage
 1737  its assets responsibly to minimize its assessment potential.
 1738         Section 10. Paragraphs (b) and (c) of subsection (3) and
 1739  paragraphs (d), (e), and (f) of subsection (6) of section
 1740  627.3511, Florida Statutes, are amended to read:
 1741         627.3511 Depopulation of Citizens Property Insurance
 1742  Corporation.—
 1743         (3) EXEMPTION FROM DEFICIT ASSESSMENTS.—
 1744         (b) An insurer that first wrote personal lines residential
 1745  property coverage in this state on or after July 1, 1994, is
 1746  exempt from regular deficit assessments imposed pursuant to s.
 1747  627.351(6)(b)3.a., but not emergency assessments collected from
 1748  policyholders pursuant to s. 627.351(6)(b)3.e. s.
 1749  627.351(6)(b)3.d., of the Citizens Property Insurance
 1750  Corporation until the earlier of the following:
 1751         1. The end of the calendar year in which it first wrote 0.5
 1752  percent or more of the statewide aggregate direct written
 1753  premium for any line of residential property coverage; or
 1754         2. December 31, 1997, or December 31 of the third year in
 1755  which it wrote such coverage in this state, whichever is later.
 1756         (c) Other than an insurer that is exempt under paragraph
 1757  (b), an insurer that in any calendar year increases its total
 1758  structure exposure subject to wind coverage by 25 percent or
 1759  more over its exposure for the preceding calendar year is, with
 1760  respect to that year, exempt from deficit assessments imposed
 1761  pursuant to s. 627.351(6)(b)3.a., but not emergency assessments
 1762  collected from policyholders pursuant to s. 627.351(6)(b)3.e. s.
 1763  627.351(6)(b)3.d., of the Citizens Property Insurance
 1764  Corporation attributable to such increase in exposure.
 1765         (6) COMMERCIAL RESIDENTIAL TAKE-OUT PLANS.—
 1766         (d) The calculation of an insurer’s regular assessment
 1767  liability under s. 627.351(6)(b)3.a., but not emergency
 1768  assessments collected from policyholders pursuant to s.
 1769  627.351(6)(b)3.e. s. 627.351(6)(b)3.d., shall, with respect to
 1770  commercial residential policies removed from the corporation
 1771  under an approved take-out plan, exclude such removed policies
 1772  for the succeeding 3 years, as follows:
 1773         1. In the first year following removal of the policies, the
 1774  policies are excluded from the calculation to the extent of 100
 1775  percent.
 1776         2. In the second year following removal of the policies,
 1777  the policies are excluded from the calculation to the extent of
 1778  75 percent.
 1779         3. In the third year following removal of the policies, the
 1780  policies are excluded from the calculation to the extent of 50
 1781  percent.
 1782         (e) An insurer that first wrote commercial residential
 1783  property coverage in this state on or after June 1, 1996, is
 1784  exempt from regular assessments under s. 627.351(6)(b)3.a., but
 1785  not emergency assessments collected from policyholders pursuant
 1786  to s. 627.351(6)(b)3.e. s. 627.351(6)(b)3.d., with respect to
 1787  commercial residential policies until the earlier of:
 1788         1. The end of the calendar year in which such insurer first
 1789  wrote 0.5 percent or more of the statewide aggregate direct
 1790  written premium for commercial residential property coverage; or
 1791         2. December 31 of the third year in which such insurer
 1792  wrote commercial residential property coverage in this state.
 1793         (f) An insurer that is not otherwise exempt from regular
 1794  assessments under s. 627.351(6)(b)3.a. with respect to
 1795  commercial residential policies is, for any calendar year in
 1796  which such insurer increased its total commercial residential
 1797  hurricane exposure by 25 percent or more over its exposure for
 1798  the preceding calendar year, exempt from regular assessments
 1799  under s. 627.351(6)(b)3.a., but not emergency assessments
 1800  collected from policyholders pursuant to s. 627.351(6)(b)3.e. s.
 1801  627.351(6)(b)3.d., attributable to such increased exposure.
 1802         Section 11. Effective January 1, 2023, subsection (5) of
 1803  section 627.3518, Florida Statutes, is amended to read:
 1804         627.3518 Citizens Property Insurance Corporation
 1805  policyholder eligibility clearinghouse program.—The purpose of
 1806  this section is to provide a framework for the corporation to
 1807  implement a clearinghouse program by January 1, 2014.
 1808         (5) Notwithstanding s. 627.3517, any applicant for new
 1809  coverage from the corporation is not eligible for coverage from
 1810  the corporation if provided an offer of coverage from an
 1811  authorized insurer through the program at a premium that is at
 1812  or below the eligibility threshold for applicants for new
 1813  coverage established in s. 627.351(6)(c)5.a. Whenever an offer
 1814  of coverage for a personal lines risk is received for a
 1815  policyholder of the corporation at renewal from an authorized
 1816  insurer through the program which is at or below the eligibility
 1817  threshold for policyholders of the corporation established in s.
 1818  627.351(6)(c)5.a., if the offer is equal to or less than the
 1819  corporation’s renewal premium for comparable coverage, the risk
 1820  is not eligible for coverage with the corporation. In the event
 1821  an offer of coverage for a new applicant is received from an
 1822  authorized insurer through the program, and the premium offered
 1823  exceeds the eligibility threshold for applicants for new
 1824  coverage established contained in s. 627.351(6)(c)5.a., the
 1825  applicant or insured may elect to accept such coverage, or may
 1826  elect to accept or continue coverage with the corporation. In
 1827  the event an offer of coverage for a personal lines risk is
 1828  received from an authorized insurer at renewal through the
 1829  program, and the premium offered exceeds the eligibility
 1830  threshold for policyholders of the corporation established in s.
 1831  627.351(6)(c)5.a. is more than the corporation’s renewal premium
 1832  for comparable coverage, the insured may elect to accept such
 1833  coverage, or may elect to accept or continue coverage with the
 1834  corporation. Section 627.351(6)(c)5.a.(I) does not apply to an
 1835  offer of coverage from an authorized insurer obtained through
 1836  the program. An applicant for coverage from the corporation who
 1837  was declared ineligible for coverage at renewal by the
 1838  corporation in the previous 36 months due to an offer of
 1839  coverage pursuant to this subsection shall be considered a
 1840  renewal under this section if the corporation determines that
 1841  the authorized insurer making the offer of coverage pursuant to
 1842  this subsection continues to insure the applicant and increased
 1843  the rate on the policy in excess of the increase allowed for the
 1844  corporation under s. 627.351(6)(n)5.
 1845         Section 12. Subsection (3) of section 627.410, Florida
 1846  Statutes, is amended to read:
 1847         627.410 Filing, approval of forms.—
 1848         (3) The office may, for cause, withdraw a previous
 1849  approval. No insurer shall issue or use any form disapproved by
 1850  the office, or as to which the office has withdrawn approval,
 1851  after the effective date of the order of the office. Based on a
 1852  finding from a market conduct examination of a property insurer
 1853  that the insurer has exhibited a pattern or practice of one or
 1854  more willful unfair insurance trade practice violations with
 1855  regard to its use of appraisal, the office shall reexamine the
 1856  insurer’s property insurance policy forms that contain an
 1857  appraisal clause, and the office may:
 1858         (a)Withdraw approval of the forms, if warranted by the
 1859  Florida Insurance Code.
 1860         (b)In addition to any regulatory action under ss. 624.418
 1861  and 624.4211, issue an order prohibiting the insurer from
 1862  invoking appraisal for up to 2 years.
 1863         Section 13. Subsections (1) and (4) of section 627.428,
 1864  Florida Statutes, are amended to read:
 1865         627.428 Attorney fees.—
 1866         (1) Except as provided in subsection (4), upon the
 1867  rendition of a judgment or decree by any of the courts of this
 1868  state against an insurer and in favor of any named or omnibus
 1869  insured or the named beneficiary under a policy or contract
 1870  executed by the insurer, the trial court or, in the event of an
 1871  appeal in which the insured or beneficiary prevails, the
 1872  appellate court shall adjudge or decree against the insurer and
 1873  in favor of the insured or beneficiary a reasonable sum as fees
 1874  or compensation for the insured’s or beneficiary’s attorney
 1875  prosecuting the suit in which the recovery is had. In a suit
 1876  commenced before December 31, 2022, arising under a residential
 1877  or commercial property insurance policy, the amount of
 1878  reasonable attorney fees shall be awarded only as provided in s.
 1879  57.105 or s. 627.70152, as applicable.