Florida Senate - 2024 SENATOR AMENDMENT
Bill No. CS/CS/HB 1503, 1st Eng.
Ì402706ÊÎ402706
LEGISLATIVE ACTION
Senate . House
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Floor: WD/2R .
03/06/2024 10:14 AM .
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Senator Boyd moved the following:
1 Senate Amendment (with title amendment)
2
3 Delete everything after the enacting clause
4 and insert:
5 Section 1. Effective upon becoming a law, paragraph (aa) of
6 subsection (6) of section 627.351, Florida Statutes, is amended
7 to read:
8 627.351 Insurance risk apportionment plans.—
9 (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
10 (aa) Except as otherwise provided in this paragraph, the
11 corporation shall require the securing and maintaining of flood
12 insurance as a condition of coverage of a personal lines
13 residential risk. The insured or applicant must execute a form
14 approved by the office affirming that flood insurance is not
15 provided by the corporation and that if flood insurance is not
16 secured by the applicant or insured from an insurer other than
17 the corporation and in addition to coverage by the corporation,
18 the risk will not be eligible for coverage by the corporation.
19 The corporation may deny coverage of a personal lines
20 residential risk to an applicant or insured who refuses to
21 secure and maintain flood insurance. The requirement to purchase
22 flood insurance shall be implemented as follows:
23 1. Except as provided in subparagraphs 2. and 3., all
24 personal lines residential policyholders must have flood
25 coverage in place for policies effective on or after:
26 a. January 1, 2024, for a structure that has a dwelling
27 replacement cost of $600,000 or more.
28 b. January 1, 2025, for a structure that has a dwelling
29 replacement cost of $500,000 or more.
30 c. January 1, 2026, for a structure that has a dwelling
31 replacement cost of $400,000 or more.
32 d. January 1, 2027, for all other personal lines
33 residential property insured by the corporation.
34 2. All personal lines residential policyholders whose
35 property insured by the corporation is located within the
36 special flood hazard area defined by the Federal Emergency
37 Management Agency must have flood coverage in place:
38 a. At the time of initial policy issuance for all new
39 personal lines residential policies issued by the corporation on
40 or after April 1, 2023.
41 b. By the time of the policy renewal for all personal lines
42 residential policies renewing on or after July 1, 2023.
43 3. Policyholders are not required to purchase flood
44 insurance as a condition for maintaining the following policies
45 issued by the corporation:
46 a. Policies that do not provide coverage for the peril of
47 wind.
48 b. Policies that provide coverage under a condominium unit
49 owners form.
50
51 The flood insurance required under this paragraph must meet, at
52 a minimum, the dwelling coverage available from the National
53 Flood Insurance Program or the requirements of subparagraphs s.
54 627.715(1)(a)1., 2., and 3.
55 Section 2. Present subsection (7) of section 627.351,
56 Florida Statutes, is redesignated as subsection (8), a new
57 subsection (7) is added to that section, paragraph (nn) is added
58 to subsection (6) of that section, and paragraph (b) of
59 subsection (2) and paragraphs (a), (b), (c), (e), (o), (p), (q),
60 (v), (w), (x), (z), and (ii) of subsection (6) of that section
61 are amended, to read:
62 627.351 Insurance risk apportionment plans.—
63 (2) WINDSTORM INSURANCE RISK APPORTIONMENT.—
64 (b) The department shall require all insurers holding a
65 certificate of authority to transact property insurance on a
66 direct basis in this state, other than joint underwriting
67 associations and other entities formed pursuant to this section,
68 to provide windstorm coverage to applicants from areas
69 determined to be eligible pursuant to paragraph (c) who in good
70 faith are entitled to, but are unable to procure, such coverage
71 through ordinary means; or it shall adopt a reasonable plan or
72 plans for the equitable apportionment or sharing among such
73 insurers of windstorm coverage, which may include formation of
74 an association for this purpose. As used in this subsection, the
75 term “property insurance” means insurance on real or personal
76 property, as defined in s. 624.604, including insurance for
77 fire, industrial fire, allied lines, farmowners multiperil,
78 homeowners multiperil, commercial multiperil, and mobile homes,
79 and including liability coverages on all such insurance, but
80 excluding inland marine as defined in s. 624.607(3) and
81 excluding vehicle insurance as defined in s. 624.605(1)(a) other
82 than insurance on mobile homes used as permanent dwellings. The
83 department shall adopt rules that provide a formula for the
84 recovery and repayment of any deferred assessments.
85 1. For the purpose of this section, properties eligible for
86 such windstorm coverage are defined as dwellings, buildings, and
87 other structures, including mobile homes which are used as
88 dwellings and which are tied down in compliance with mobile home
89 tie-down requirements prescribed by the Department of Highway
90 Safety and Motor Vehicles pursuant to s. 320.8325, and the
91 contents of all such properties. An applicant or policyholder is
92 eligible for coverage only if an offer of coverage cannot be
93 obtained by or for the applicant or policyholder from an
94 admitted insurer at approved rates.
95 2.a.(I) All insurers required to be members of such
96 association shall participate in its writings, expenses, and
97 losses. Surplus of the association shall be retained for the
98 payment of claims and shall not be distributed to the member
99 insurers. Such participation by member insurers shall be in the
100 proportion that the net direct premiums of each member insurer
101 written for property insurance in this state during the
102 preceding calendar year bear to the aggregate net direct
103 premiums for property insurance of all member insurers, as
104 reduced by any credits for voluntary writings, in this state
105 during the preceding calendar year. For the purposes of this
106 subsection, the term “net direct premiums” means direct written
107 premiums for property insurance, reduced by premium for
108 liability coverage and for the following if included in allied
109 lines: rain and hail on growing crops; livestock; association
110 direct premiums booked; National Flood Insurance Program direct
111 premiums; and similar deductions specifically authorized by the
112 plan of operation and approved by the department. A member’s
113 participation shall begin on the first day of the calendar year
114 following the year in which it is issued a certificate of
115 authority to transact property insurance in the state and shall
116 terminate 1 year after the end of the calendar year during which
117 it no longer holds a certificate of authority to transact
118 property insurance in the state. The commissioner, after review
119 of annual statements, other reports, and any other statistics
120 that the commissioner deems necessary, shall certify to the
121 association the aggregate direct premiums written for property
122 insurance in this state by all member insurers.
123 (II) Effective July 1, 2002, the association shall operate
124 subject to the supervision and approval of a board of governors
125 who are the same individuals that have been appointed by the
126 Treasurer to serve on the board of governors of the Citizens
127 Property Insurance Corporation.
128 (III) The plan of operation shall provide a formula whereby
129 a company voluntarily providing windstorm coverage in affected
130 areas will be relieved wholly or partially from apportionment of
131 a regular assessment pursuant to sub-sub-subparagraph d.(I) or
132 sub-sub-subparagraph d.(II).
133 (IV) A company which is a member of a group of companies
134 under common management may elect to have its credits applied on
135 a group basis, and any company or group may elect to have its
136 credits applied to any other company or group.
137 (V) There shall be no credits or relief from apportionment
138 to a company for emergency assessments collected from its
139 policyholders under sub-sub-subparagraph d.(III).
140 (VI) The plan of operation may also provide for the award
141 of credits, for a period not to exceed 3 years, from a regular
142 assessment pursuant to sub-sub-subparagraph d.(I) or sub-sub
143 subparagraph d.(II) as an incentive for taking policies out of
144 the Residential Property and Casualty Joint Underwriting
145 Association. In order to qualify for the exemption under this
146 sub-sub-subparagraph, the take-out plan must provide that at
147 least 40 percent of the policies removed from the Residential
148 Property and Casualty Joint Underwriting Association cover risks
149 located in Miami-Dade, Broward, and Palm Beach Counties or at
150 least 30 percent of the policies so removed cover risks located
151 in Miami-Dade, Broward, and Palm Beach Counties and an
152 additional 50 percent of the policies so removed cover risks
153 located in other coastal counties, and must also provide that no
154 more than 15 percent of the policies so removed may exclude
155 windstorm coverage. With the approval of the department, the
156 association may waive these geographic criteria for a take-out
157 plan that removes at least the lesser of 100,000 Residential
158 Property and Casualty Joint Underwriting Association policies or
159 15 percent of the total number of Residential Property and
160 Casualty Joint Underwriting Association policies, provided the
161 governing board of the Residential Property and Casualty Joint
162 Underwriting Association certifies that the take-out plan will
163 materially reduce the Residential Property and Casualty Joint
164 Underwriting Association’s 100-year probable maximum loss from
165 hurricanes. With the approval of the department, the board may
166 extend such credits for an additional year if the insurer
167 guarantees an additional year of renewability for all policies
168 removed from the Residential Property and Casualty Joint
169 Underwriting Association, or for 2 additional years if the
170 insurer guarantees 2 additional years of renewability for all
171 policies removed from the Residential Property and Casualty
172 Joint Underwriting Association.
173 b. Assessments to pay deficits in the association under
174 this subparagraph shall be included as an appropriate factor in
175 the making of rates as provided in s. 627.3512.
176 c. The Legislature finds that the potential for unlimited
177 deficit assessments under this subparagraph may induce insurers
178 to attempt to reduce their writings in the voluntary market, and
179 that such actions would worsen the availability problems that
180 the association was created to remedy. It is the intent of the
181 Legislature that insurers remain fully responsible for paying
182 regular assessments and collecting emergency assessments for any
183 deficits of the association; however, it is also the intent of
184 the Legislature to provide a means by which assessment
185 liabilities may be amortized over a period of years.
186 d.(I) When the deficit incurred in a particular calendar
187 year is 10 percent or less of the aggregate statewide direct
188 written premium for property insurance for the prior calendar
189 year for all member insurers, the association shall levy an
190 assessment on member insurers in an amount equal to the deficit.
191 (II) When the deficit incurred in a particular calendar
192 year exceeds 10 percent of the aggregate statewide direct
193 written premium for property insurance for the prior calendar
194 year for all member insurers, the association shall levy an
195 assessment on member insurers in an amount equal to the greater
196 of 10 percent of the deficit or 10 percent of the aggregate
197 statewide direct written premium for property insurance for the
198 prior calendar year for member insurers. Any remaining deficit
199 shall be recovered through emergency assessments under sub-sub
200 subparagraph (III).
201 (III) Upon a determination by the board of directors that a
202 deficit exceeds the amount that will be recovered through
203 regular assessments on member insurers, pursuant to sub-sub
204 subparagraph (I) or sub-sub-subparagraph (II), the board shall
205 levy, after verification by the department, emergency
206 assessments to be collected by member insurers and by
207 underwriting associations created pursuant to this section which
208 write property insurance, upon issuance or renewal of property
209 insurance policies other than National Flood Insurance policies
210 in the year or years following levy of the regular assessments.
211 The amount of the emergency assessment collected in a particular
212 year shall be a uniform percentage of that year’s direct written
213 premium for property insurance for all member insurers and
214 underwriting associations, excluding National Flood Insurance
215 policy premiums, as annually determined by the board and
216 verified by the department. The department shall verify the
217 arithmetic calculations involved in the board’s determination
218 within 30 days after receipt of the information on which the
219 determination was based. Notwithstanding any other provision of
220 law, each member insurer and each underwriting association
221 created pursuant to this section shall collect emergency
222 assessments from its policyholders without such obligation being
223 affected by any credit, limitation, exemption, or deferment. The
224 emergency assessments so collected shall be transferred directly
225 to the association on a periodic basis as determined by the
226 association. The aggregate amount of emergency assessments
227 levied under this sub-sub-subparagraph in any calendar year may
228 not exceed the greater of 10 percent of the amount needed to
229 cover the original deficit, plus interest, fees, commissions,
230 required reserves, and other costs associated with financing of
231 the original deficit, or 10 percent of the aggregate statewide
232 direct written premium for property insurance written by member
233 insurers and underwriting associations for the prior year, plus
234 interest, fees, commissions, required reserves, and other costs
235 associated with financing the original deficit. The board may
236 pledge the proceeds of the emergency assessments under this sub
237 sub-subparagraph as the source of revenue for bonds, to retire
238 any other debt incurred as a result of the deficit or events
239 giving rise to the deficit, or in any other way that the board
240 determines will efficiently recover the deficit. The emergency
241 assessments under this sub-sub-subparagraph shall continue as
242 long as any bonds issued or other indebtedness incurred with
243 respect to a deficit for which the assessment was imposed remain
244 outstanding, unless adequate provision has been made for the
245 payment of such bonds or other indebtedness pursuant to the
246 document governing such bonds or other indebtedness. Emergency
247 assessments collected under this sub-sub-subparagraph are not
248 part of an insurer’s rates, are not premium, and are not subject
249 to premium tax, fees, or commissions; however, failure to pay
250 the emergency assessment shall be treated as failure to pay
251 premium.
252 (IV) Each member insurer’s share of the total regular
253 assessments under sub-sub-subparagraph (I) or sub-sub
254 subparagraph (II) shall be in the proportion that the insurer’s
255 net direct premium for property insurance in this state, for the
256 year preceding the assessment bears to the aggregate statewide
257 net direct premium for property insurance of all member
258 insurers, as reduced by any credits for voluntary writings for
259 that year.
260 (V) If regular deficit assessments are made under sub-sub
261 subparagraph (I) or sub-sub-subparagraph (II), or by the
262 Residential Property and Casualty Joint Underwriting Association
263 under sub-subparagraph (6)(b)3.a., the association shall levy
264 upon the association’s policyholders, as part of its next rate
265 filing, or by a separate rate filing solely for this purpose, a
266 market equalization surcharge in a percentage equal to the total
267 amount of such regular assessments divided by the aggregate
268 statewide direct written premium for property insurance for
269 member insurers for the prior calendar year. Market equalization
270 surcharges under this sub-sub-subparagraph are not considered
271 premium and are not subject to commissions, fees, or premium
272 taxes; however, failure to pay a market equalization surcharge
273 shall be treated as failure to pay premium.
274 e. The governing body of any unit of local government, any
275 residents of which are insured under the plan, may issue bonds
276 as defined in s. 125.013 or s. 166.101 to fund an assistance
277 program, in conjunction with the association, for the purpose of
278 defraying deficits of the association. In order to avoid
279 needless and indiscriminate proliferation, duplication, and
280 fragmentation of such assistance programs, any unit of local
281 government, any residents of which are insured by the
282 association, may provide for the payment of losses, regardless
283 of whether or not the losses occurred within or outside of the
284 territorial jurisdiction of the local government. Revenue bonds
285 may not be issued until validated pursuant to chapter 75, unless
286 a state of emergency is declared by executive order or
287 proclamation of the Governor pursuant to s. 252.36 making such
288 findings as are necessary to determine that it is in the best
289 interests of, and necessary for, the protection of the public
290 health, safety, and general welfare of residents of this state
291 and the protection and preservation of the economic stability of
292 insurers operating in this state, and declaring it an essential
293 public purpose to permit certain municipalities or counties to
294 issue bonds as will provide relief to claimants and
295 policyholders of the association and insurers responsible for
296 apportionment of plan losses. Any such unit of local government
297 may enter into such contracts with the association and with any
298 other entity created pursuant to this subsection as are
299 necessary to carry out this paragraph. Any bonds issued under
300 this sub-subparagraph shall be payable from and secured by
301 moneys received by the association from assessments under this
302 subparagraph, and assigned and pledged to or on behalf of the
303 unit of local government for the benefit of the holders of such
304 bonds. The funds, credit, property, and taxing power of the
305 state or of the unit of local government shall not be pledged
306 for the payment of such bonds. If any of the bonds remain unsold
307 60 days after issuance, the department shall require all
308 insurers subject to assessment to purchase the bonds, which
309 shall be treated as admitted assets; each insurer shall be
310 required to purchase that percentage of the unsold portion of
311 the bond issue that equals the insurer’s relative share of
312 assessment liability under this subsection. An insurer shall not
313 be required to purchase the bonds to the extent that the
314 department determines that the purchase would endanger or impair
315 the solvency of the insurer. The authority granted by this sub
316 subparagraph is additional to any bonding authority granted by
317 subparagraph 6.
318 3. The plan shall also provide that any member with a
319 surplus as to policyholders of $25 million or less writing 25
320 percent or more of its total countrywide property insurance
321 premiums in this state may petition the department, within the
322 first 90 days of each calendar year, to qualify as a limited
323 apportionment company. The apportionment of such a member
324 company in any calendar year for which it is qualified shall not
325 exceed its gross participation, which shall not be affected by
326 the formula for voluntary writings. In no event shall a limited
327 apportionment company be required to participate in any
328 apportionment of losses pursuant to sub-sub-subparagraph 2.d.(I)
329 or sub-sub-subparagraph 2.d.(II) in the aggregate which exceeds
330 $50 million after payment of available plan funds in any
331 calendar year. However, a limited apportionment company shall
332 collect from its policyholders any emergency assessment imposed
333 under sub-sub-subparagraph 2.d.(III). The plan shall provide
334 that, if the department determines that any regular assessment
335 will result in an impairment of the surplus of a limited
336 apportionment company, the department may direct that all or
337 part of such assessment be deferred. However, there shall be no
338 limitation or deferment of an emergency assessment to be
339 collected from policyholders under sub-sub-subparagraph
340 2.d.(III).
341 4. The plan shall provide for the deferment, in whole or in
342 part, of a regular assessment of a member insurer under sub-sub
343 subparagraph 2.d.(I) or sub-sub-subparagraph 2.d.(II), but not
344 for an emergency assessment collected from policyholders under
345 sub-sub-subparagraph 2.d.(III), if, in the opinion of the
346 commissioner, payment of such regular assessment would endanger
347 or impair the solvency of the member insurer. In the event a
348 regular assessment against a member insurer is deferred in whole
349 or in part, the amount by which such assessment is deferred may
350 be assessed against the other member insurers in a manner
351 consistent with the basis for assessments set forth in sub-sub
352 subparagraph 2.d.(I) or sub-sub-subparagraph 2.d.(II).
353 5.a. The plan of operation may include deductibles and
354 rules for classification of risks and rate modifications
355 consistent with the objective of providing and maintaining funds
356 sufficient to pay catastrophe losses.
357 b. It is the intent of the Legislature that the rates for
358 coverage provided by the association be actuarially sound and
359 not competitive with approved rates charged in the admitted
360 voluntary market such that the association functions as a
361 residual market mechanism to provide insurance only when the
362 insurance cannot be procured in the voluntary market. The plan
363 of operation shall provide a mechanism to assure that, beginning
364 no later than January 1, 1999, the rates charged by the
365 association for each line of business are reflective of approved
366 rates in the voluntary market for hurricane coverage for each
367 line of business in the various areas eligible for association
368 coverage.
369 c. The association shall provide for windstorm coverage on
370 residential properties in limits up to $10 million for
371 commercial lines residential risks and up to $1 million for
372 personal lines residential risks. If coverage with the
373 association is sought for a residential risk valued in excess of
374 these limits, coverage shall be available to the risk up to the
375 replacement cost or actual cash value of the property, at the
376 option of the insured, if coverage for the risk cannot be
377 located in the authorized market. The association must accept a
378 commercial lines residential risk with limits above $10 million
379 or a personal lines residential risk with limits above $1
380 million if coverage is not available in the authorized market.
381 The association may write coverage above the limits specified in
382 this subparagraph with or without facultative or other
383 reinsurance coverage, as the association determines appropriate.
384 d. The plan of operation must provide objective criteria
385 and procedures, approved by the department, to be uniformly
386 applied for all applicants in determining whether an individual
387 risk is so hazardous as to be uninsurable. In making this
388 determination and in establishing the criteria and procedures,
389 the following shall be considered:
390 (I) Whether the likelihood of a loss for the individual
391 risk is substantially higher than for other risks of the same
392 class; and
393 (II) Whether the uncertainty associated with the individual
394 risk is such that an appropriate premium cannot be determined.
395
396 The acceptance or rejection of a risk by the association
397 pursuant to such criteria and procedures must be construed as
398 the private placement of insurance, and the provisions of
399 chapter 120 do not apply.
400 e. If the risk accepts an offer of coverage through the
401 market assistance program or through a mechanism established by
402 the association, either before the policy is issued by the
403 association or during the first 30 days of coverage by the
404 association, and the producing agent who submitted the
405 application to the association is not currently appointed by the
406 insurer, the insurer shall:
407 (I) Pay to the producing agent of record of the policy, for
408 the first year, an amount that is the greater of the insurer’s
409 usual and customary commission for the type of policy written or
410 a fee equal to the usual and customary commission of the
411 association; or
412 (II) Offer to allow the producing agent of record of the
413 policy to continue servicing the policy for a period of not less
414 than 1 year and offer to pay the agent the greater of the
415 insurer’s or the association’s usual and customary commission
416 for the type of policy written.
417
418 If the producing agent is unwilling or unable to accept
419 appointment, the new insurer shall pay the agent in accordance
420 with sub-sub-subparagraph (I). Subject to the provisions of s.
421 627.3517, the policies issued by the association must provide
422 that if the association obtains an offer from an authorized
423 insurer to cover the risk at its approved rates under either a
424 standard policy including wind coverage or, if consistent with
425 the insurer’s underwriting rules as filed with the department, a
426 basic policy including wind coverage, the risk is no longer
427 eligible for coverage through the association. Upon termination
428 of eligibility, the association shall provide written notice to
429 the policyholder and agent of record stating that the
430 association policy must be canceled as of 60 days after the date
431 of the notice because of the offer of coverage from an
432 authorized insurer. Other provisions of the insurance code
433 relating to cancellation and notice of cancellation do not apply
434 to actions under this sub-subparagraph.
435 f. When the association enters into a contractual agreement
436 for a take-out plan, the producing agent of record of the
437 association policy is entitled to retain any unearned commission
438 on the policy, and the insurer shall:
439 (I) Pay to the producing agent of record of the association
440 policy, for the first year, an amount that is the greater of the
441 insurer’s usual and customary commission for the type of policy
442 written or a fee equal to the usual and customary commission of
443 the association; or
444 (II) Offer to allow the producing agent of record of the
445 association policy to continue servicing the policy for a period
446 of not less than 1 year and offer to pay the agent the greater
447 of the insurer’s or the association’s usual and customary
448 commission for the type of policy written.
449
450 If the producing agent is unwilling or unable to accept
451 appointment, the new insurer shall pay the agent in accordance
452 with sub-sub-subparagraph (I).
453 6.a. The plan of operation may authorize the formation of a
454 private nonprofit corporation, a private nonprofit
455 unincorporated association, a partnership, a trust, a limited
456 liability company, or a nonprofit mutual company which may be
457 empowered, among other things, to borrow money by issuing bonds
458 or by incurring other indebtedness and to accumulate reserves or
459 funds to be used for the payment of insured catastrophe losses.
460 The plan may authorize all actions necessary to facilitate the
461 issuance of bonds, including the pledging of assessments or
462 other revenues.
463 b. Any entity created under this subsection, or any entity
464 formed for the purposes of this subsection, may sue and be sued,
465 may borrow money; issue bonds, notes, or debt instruments;
466 pledge or sell assessments, market equalization surcharges and
467 other surcharges, rights, premiums, contractual rights,
468 projected recoveries from the Florida Hurricane Catastrophe
469 Fund, other reinsurance recoverables, and other assets as
470 security for such bonds, notes, or debt instruments; enter into
471 any contracts or agreements necessary or proper to accomplish
472 such borrowings; and take other actions necessary to carry out
473 the purposes of this subsection. The association may issue bonds
474 or incur other indebtedness, or have bonds issued on its behalf
475 by a unit of local government pursuant to subparagraph (6)(q)2.,
476 in the absence of a hurricane or other weather-related event,
477 upon a determination by the association subject to approval by
478 the department that such action would enable it to efficiently
479 meet the financial obligations of the association and that such
480 financings are reasonably necessary to effectuate the
481 requirements of this subsection. Any such entity may accumulate
482 reserves and retain surpluses as of the end of any association
483 year to provide for the payment of losses incurred by the
484 association during that year or any future year. The association
485 shall incorporate and continue the plan of operation and
486 articles of agreement in effect on the effective date of chapter
487 76-96, Laws of Florida, to the extent that it is not
488 inconsistent with chapter 76-96, and as subsequently modified
489 consistent with chapter 76-96. The board of directors and
490 officers currently serving shall continue to serve until their
491 successors are duly qualified as provided under the plan. The
492 assets and obligations of the plan in effect immediately prior
493 to the effective date of chapter 76-96 shall be construed to be
494 the assets and obligations of the successor plan created herein.
495 c. In recognition of s. 10, Art. I of the State
496 Constitution, prohibiting the impairment of obligations of
497 contracts, it is the intent of the Legislature that no action be
498 taken whose purpose is to impair any bond indenture or financing
499 agreement or any revenue source committed by contract to such
500 bond or other indebtedness issued or incurred by the association
501 or any other entity created under this subsection.
502 7. On such coverage, an agent’s remuneration shall be that
503 amount of money payable to the agent by the terms of his or her
504 contract with the company with which the business is placed.
505 However, no commission will be paid on that portion of the
506 premium which is in excess of the standard premium of that
507 company.
508 8. Subject to approval by the department, the association
509 may establish different eligibility requirements and operational
510 procedures for any line or type of coverage for any specified
511 eligible area or portion of an eligible area if the board
512 determines that such changes to the eligibility requirements and
513 operational procedures are justified due to the voluntary market
514 being sufficiently stable and competitive in such area or for
515 such line or type of coverage and that consumers who, in good
516 faith, are unable to obtain insurance through the voluntary
517 market through ordinary methods would continue to have access to
518 coverage from the association. When coverage is sought in
519 connection with a real property transfer, such requirements and
520 procedures shall not provide for an effective date of coverage
521 later than the date of the closing of the transfer as
522 established by the transferor, the transferee, and, if
523 applicable, the lender.
524 9. Notwithstanding any other provision of law:
525 a. The pledge or sale of, the lien upon, and the security
526 interest in any rights, revenues, or other assets of the
527 association created or purported to be created pursuant to any
528 financing documents to secure any bonds or other indebtedness of
529 the association shall be and remain valid and enforceable,
530 notwithstanding the commencement of and during the continuation
531 of, and after, any rehabilitation, insolvency, liquidation,
532 bankruptcy, receivership, conservatorship, reorganization, or
533 similar proceeding against the association under the laws of
534 this state or any other applicable laws.
535 b. No such proceeding shall relieve the association of its
536 obligation, or otherwise affect its ability to perform its
537 obligation, to continue to collect, or levy and collect,
538 assessments, market equalization or other surcharges, projected
539 recoveries from the Florida Hurricane Catastrophe Fund,
540 reinsurance recoverables, or any other rights, revenues, or
541 other assets of the association pledged.
542 c. Each such pledge or sale of, lien upon, and security
543 interest in, including the priority of such pledge, lien, or
544 security interest, any such assessments, emergency assessments,
545 market equalization or renewal surcharges, projected recoveries
546 from the Florida Hurricane Catastrophe Fund, reinsurance
547 recoverables, or other rights, revenues, or other assets which
548 are collected, or levied and collected, after the commencement
549 of and during the pendency of or after any such proceeding shall
550 continue unaffected by such proceeding.
551 d. As used in this subsection, the term “financing
552 documents” means any agreement, instrument, or other document
553 now existing or hereafter created evidencing any bonds or other
554 indebtedness of the association or pursuant to which any such
555 bonds or other indebtedness has been or may be issued and
556 pursuant to which any rights, revenues, or other assets of the
557 association are pledged or sold to secure the repayment of such
558 bonds or indebtedness, together with the payment of interest on
559 such bonds or such indebtedness, or the payment of any other
560 obligation of the association related to such bonds or
561 indebtedness.
562 e. Any such pledge or sale of assessments, revenues,
563 contract rights or other rights or assets of the association
564 shall constitute a lien and security interest, or sale, as the
565 case may be, that is immediately effective and attaches to such
566 assessments, revenues, contract, or other rights or assets,
567 whether or not imposed or collected at the time the pledge or
568 sale is made. Any such pledge or sale is effective, valid,
569 binding, and enforceable against the association or other entity
570 making such pledge or sale, and valid and binding against and
571 superior to any competing claims or obligations owed to any
572 other person or entity, including policyholders in this state,
573 asserting rights in any such assessments, revenues, contract, or
574 other rights or assets to the extent set forth in and in
575 accordance with the terms of the pledge or sale contained in the
576 applicable financing documents, whether or not any such person
577 or entity has notice of such pledge or sale and without the need
578 for any physical delivery, recordation, filing, or other action.
579 f. There shall be no liability on the part of, and no cause
580 of action of any nature shall arise against, any member insurer
581 or its agents or employees, agents or employees of the
582 association, members of the board of directors of the
583 association, or the department or its representatives, for any
584 action taken by them in the performance of their duties or
585 responsibilities under this subsection. Such immunity does not
586 apply to actions for breach of any contract or agreement
587 pertaining to insurance, or any willful tort.
588 (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
589 (a) The public purpose of this subsection is to ensure that
590 there is an orderly market for property insurance for residents
591 and businesses of this state.
592 1. The Legislature finds that private insurers are
593 unwilling or unable to provide affordable property insurance
594 coverage in this state to the extent sought and needed. The
595 absence of affordable property insurance threatens the public
596 health, safety, and welfare and likewise threatens the economic
597 health of the state. The state therefore has a compelling public
598 interest and a public purpose to assist in assuring that
599 property in the state is insured and that it is insured at
600 affordable rates so as to facilitate the remediation,
601 reconstruction, and replacement of damaged or destroyed property
602 in order to reduce or avoid the negative effects otherwise
603 resulting to the public health, safety, and welfare, to the
604 economy of the state, and to the revenues of the state and local
605 governments which are needed to provide for the public welfare.
606 It is necessary, therefore, to provide affordable property
607 insurance to applicants who are in good faith entitled to
608 procure insurance through the voluntary market but are unable to
609 do so. The Legislature intends, therefore, that affordable
610 property insurance be provided and that it continue to be
611 provided, as long as necessary, through Citizens Property
612 Insurance Corporation, a government entity that is an integral
613 part of the state, and that is not a private insurance company.
614 To that end, the corporation shall strive to increase the
615 availability of affordable property insurance in this state,
616 while achieving efficiencies and economies, and while providing
617 service to policyholders, applicants, and agents which is no
618 less than the quality generally provided in the voluntary
619 market, for the achievement of the foregoing public purposes.
620 Because it is essential for this government entity to have the
621 maximum financial resources to pay claims following a
622 catastrophic hurricane, it is the intent of the Legislature that
623 the corporation continue to be an integral part of the state and
624 that the income of the corporation be exempt from federal income
625 taxation and that interest on the debt obligations issued by the
626 corporation be exempt from federal income taxation.
627 2. The Residential Property and Casualty Joint Underwriting
628 Association originally created by this statute shall be known as
629 the Citizens Property Insurance Corporation. The corporation
630 shall provide insurance for residential and commercial property,
631 for applicants who are entitled, but, in good faith, are unable
632 to procure insurance through the voluntary market. The
633 corporation shall operate pursuant to a plan of operation
634 approved by order of the Financial Services Commission. The plan
635 is subject to continuous review by the commission. The
636 commission may, by order, withdraw approval of all or part of a
637 plan if the commission determines that conditions have changed
638 since approval was granted and that the purposes of the plan
639 require changes in the plan. For the purposes of this
640 subsection, residential coverage includes both personal lines
641 residential coverage, which consists of the type of coverage
642 provided by homeowner, mobile home owner, dwelling, tenant,
643 condominium unit owner, and similar policies; and commercial
644 lines residential coverage, which consists of the type of
645 coverage provided by condominium association, apartment
646 building, and similar policies.
647 3. With respect to coverage for personal lines residential
648 structures:
649 a. Effective January 1, 2014, a structure that has a
650 dwelling replacement cost of $1 million or more, or a single
651 condominium unit that has a combined dwelling and contents
652 replacement cost of $1 million or more, is not eligible for
653 coverage by the corporation. Such dwellings insured by the
654 corporation on December 31, 2013, may continue to be covered by
655 the corporation until the end of the policy term. The office
656 shall approve the method used by the corporation for valuing the
657 dwelling replacement cost for the purposes of this subparagraph.
658 If a policyholder is insured by the corporation before being
659 determined to be ineligible pursuant to this subparagraph and
660 such policyholder files a lawsuit challenging the determination,
661 the policyholder may remain insured by the corporation until the
662 conclusion of the litigation.
663 b. Effective January 1, 2015, a structure that has a
664 dwelling replacement cost of $900,000 or more, or a single
665 condominium unit that has a combined dwelling and contents
666 replacement cost of $900,000 or more, is not eligible for
667 coverage by the corporation. Such dwellings insured by the
668 corporation on December 31, 2014, may continue to be covered by
669 the corporation only until the end of the policy term.
670 c. Effective January 1, 2016, a structure that has a
671 dwelling replacement cost of $800,000 or more, or a single
672 condominium unit that has a combined dwelling and contents
673 replacement cost of $800,000 or more, is not eligible for
674 coverage by the corporation. Such dwellings insured by the
675 corporation on December 31, 2015, may continue to be covered by
676 the corporation until the end of the policy term.
677 d. Effective January 1, 2017, a structure that has a
678 dwelling replacement cost of $700,000 or more, or a single
679 condominium unit that has a combined dwelling and contents
680 replacement cost of $700,000 or more, is not eligible for
681 coverage by the corporation. Such dwellings insured by the
682 corporation on December 31, 2016, may continue to be covered by
683 the corporation until the end of the policy term.
684 b. The requirements of sub-subparagraph a. sub
685 subparagraphs b.-d. do not apply in counties where the office
686 determines there is not a reasonable degree of competition. In
687 such counties a personal lines residential structure that has a
688 dwelling replacement cost of less than $1 million, or a single
689 condominium unit that has a combined dwelling and contents
690 replacement cost of less than $1 million, is eligible for
691 coverage by the corporation.
692 4. It is the intent of the Legislature that policyholders,
693 applicants, and agents of the corporation receive service and
694 treatment of the highest possible level but never less than that
695 generally provided in the voluntary market. It is also intended
696 that the corporation be held to service standards no less than
697 those applied to insurers in the voluntary market by the office
698 with respect to responsiveness, timeliness, customer courtesy,
699 and overall dealings with policyholders, applicants, or agents
700 of the corporation.
701 5.a. Effective January 1, 2009, a personal lines
702 residential structure that is located in the “wind-borne debris
703 region,” as defined in s. 1609.2, International Building Code
704 (2006), and that has an insured value on the structure of
705 $750,000 or more is not eligible for coverage by the corporation
706 unless the structure has opening protections as required under
707 the Florida Building Code for a newly constructed residential
708 structure in that area. A residential structure is deemed to
709 comply with this sub-subparagraph if it has shutters or opening
710 protections on all openings and if such opening protections
711 complied with the Florida Building Code at the time they were
712 installed.
713 b. Any major structure, as defined in s. 161.54(6)(a), that
714 is newly constructed, or rebuilt, repaired, restored, or
715 remodeled to increase the total square footage of finished area
716 by more than 25 percent, pursuant to a permit applied for after
717 July 1, 2015, is not eligible for coverage by the corporation if
718 the structure is seaward of the coastal construction control
719 line established pursuant to s. 161.053 or is within the Coastal
720 Barrier Resources System as designated by 16 U.S.C. ss. 3501
721 3510.
722 6. With respect to wind-only coverage for commercial lines
723 residential condominiums, effective July 1, 2014, a condominium
724 shall be deemed ineligible for coverage if 50 percent or more of
725 the units are rented more than eight times in a calendar year
726 for a rental agreement period of less than 30 days.
727 (b)1. All insurers authorized to write one or more subject
728 lines of business in this state are subject to assessment by the
729 corporation and, for the purposes of this subsection, are
730 referred to collectively as “assessable insurers.” Insurers
731 writing one or more subject lines of business in this state
732 pursuant to part VIII of chapter 626 are not assessable
733 insurers; however, insureds who procure one or more subject
734 lines of business in this state pursuant to part VIII of chapter
735 626 are subject to assessment by the corporation and are
736 referred to collectively as “assessable insureds.” An insurer’s
737 assessment liability begins on the first day of the calendar
738 year following the year in which the insurer was issued a
739 certificate of authority to transact insurance for subject lines
740 of business in this state and terminates 1 year after the end of
741 the first calendar year during which the insurer no longer holds
742 a certificate of authority to transact insurance for subject
743 lines of business in this state.
744 2.a. All revenues, assets, liabilities, losses, and
745 expenses of the corporation shall be maintained in the Citizens
746 account. The Citizens account may provide divided into three
747 separate accounts as follows:
748 a.(I) A personal lines account for Personal residential
749 policies that provide issued by the corporation which provides
750 comprehensive, multiperil coverage on risks that are not located
751 in areas eligible for coverage by the Florida Windstorm
752 Underwriting Association as those areas were defined on January
753 1, 2002, and for policies that do not provide coverage for the
754 peril of wind on risks that are located in such areas;
755 b.(II) A commercial lines account for Commercial
756 residential and commercial nonresidential policies that provide
757 issued by the corporation which provides coverage for basic
758 property perils on risks that are not located in areas eligible
759 for coverage by the Florida Windstorm Underwriting Association
760 as those areas were defined on January 1, 2002, and for policies
761 that do not provide coverage for the peril of wind on risks that
762 are located in such areas; and
763 c.(III) A coastal account for Personal residential policies
764 and commercial residential and commercial nonresidential
765 property policies that provide issued by the corporation which
766 provides coverage for the peril of wind on risks that are
767 located in areas eligible for coverage by the Florida Windstorm
768 Underwriting Association as those areas were defined on January
769 1, 2002. The corporation may offer policies that provide
770 multiperil coverage and shall offer policies that provide
771 coverage only for the peril of wind for risks located in areas
772 eligible for coverage by the Florida Windstorm Underwriting
773 Association, as those areas were defined on January 1, 2002 in
774 the coastal account. Effective July 1, 2014, The corporation may
775 not offer shall cease offering new commercial residential
776 policies providing multiperil coverage but and shall instead
777 continue to offer commercial residential wind-only policies, and
778 may offer commercial residential policies excluding wind.
779 However, the corporation may, however, continue to renew a
780 commercial residential multiperil policy on a building that was
781 is insured by the corporation on June 30, 2014, under a
782 multiperil policy. In issuing multiperil coverage under this
783 sub-subparagraph, the corporation may use its approved policy
784 forms and rates for risks located in areas not eligible for
785 coverage by the Florida Windstorm Underwriting Association, as
786 those areas were defined on January 1, 2002, and for policies
787 that do not provide coverage for the peril of wind on risks that
788 are located in such areas the personal lines account. An
789 applicant or insured who is eligible to purchase a multiperil
790 policy from the corporation may purchase a multiperil policy
791 from an authorized insurer without prejudice to the applicant’s
792 or insured’s eligibility to prospectively purchase a policy that
793 provides coverage only for the peril of wind from the
794 corporation. An applicant or insured who is eligible for a
795 corporation policy that provides coverage only for the peril of
796 wind may elect to purchase or retain such policy and also
797 purchase or retain coverage excluding wind from an authorized
798 insurer without prejudice to the applicant’s or insured’s
799 eligibility to prospectively purchase a policy that provides
800 multiperil coverage from the corporation. The following
801 policies, which provide coverage only for the peril of wind,
802 must also include quota share primary insurance under
803 subparagraph (c)2.:
804 (I) Personal residential policies and commercial
805 residential and commercial nonresidential property policies that
806 provide coverage for the peril of wind on risks that are located
807 in areas eligible for coverage by the Florida Windstorm
808 Underwriting Association, as those areas were defined on January
809 1, 2002;
810 (II) Policies that provide multiperil coverage, if offered
811 by the corporation, and policies that provide coverage only for
812 the peril of wind for risks located in areas eligible for
813 coverage by the Florida Windstorm Underwriting Association, as
814 those areas were defined on January 1, 2002;
815 (III) Commercial residential wind-only policies;
816 (IV) Commercial residential policies excluding wind, if
817 offered by the corporation; and
818 (V) Commercial residential multiperil policies on a
819 building that was insured by the corporation on June 30, 2014 It
820 is the goal of the Legislature that there be an overall average
821 savings of 10 percent or more for a policyholder who currently
822 has a wind-only policy with the corporation, and an ex-wind
823 policy with a voluntary insurer or the corporation, and who
824 obtains a multiperil policy from the corporation. It is the
825 intent of the Legislature that the offer of multiperil coverage
826 in the coastal account be made and implemented in a manner that
827 does not adversely affect the tax-exempt status of the
828 corporation or creditworthiness of or security for currently
829 outstanding financing obligations or credit facilities of the
830 coastal account, the personal lines account, or the commercial
831 lines account. The coastal account must also include quota share
832 primary insurance under subparagraph (c)2.
833
834 The area eligible for coverage with the corporation under this
835 sub-subparagraph under the coastal account also includes the
836 area within Port Canaveral, which is bordered on the south by
837 the City of Cape Canaveral, bordered on the west by the Banana
838 River, and bordered on the north by Federal Government property.
839 3. With respect to a deficit in the Citizens account:
840 a. Upon a determination by the board of governors that the
841 Citizens account has a projected deficit, the board shall levy a
842 Citizens policyholder surcharge against all policyholders of the
843 corporation.
844 (I) The surcharge shall be levied as a uniform percentage
845 of the premium for the policy of up to 15 percent of such
846 premium, which funds shall be used to offset the deficit.
847 (II) The surcharge is payable upon cancellation or
848 termination of the policy, upon renewal of the policy, or upon
849 issuance of a new policy by the corporation within the first 12
850 months after the date of the levy or the period of time
851 necessary to fully collect the surcharge amount.
852 (III) The surcharge is not considered premium and is not
853 subject to commissions, fees, or premium taxes. However, failure
854 to pay the surcharge shall be treated as failure to pay premium.
855 b. The three separate accounts must be maintained as long
856 as financing obligations entered into by the Florida Windstorm
857 Underwriting Association or Residential Property and Casualty
858 Joint Underwriting Association are outstanding, in accordance
859 with the terms of the corresponding financing documents. If no
860 such financing obligations remain outstanding or if the
861 financing documents allow for combining of accounts, the
862 corporation may consolidate the three separate accounts into a
863 new account, to be known as the Citizens account, for all
864 revenues, assets, liabilities, losses, and expenses of the
865 corporation. The Citizens account, if established by the
866 corporation, is authorized to provide coverage to the same
867 extent as provided under each of the three separate accounts.
868 The authority to provide coverage under the Citizens account is
869 set forth in subparagraph 4. Consistent with this subparagraph
870 and prudent investment policies that minimize the cost of
871 carrying debt, the board shall exercise its best efforts to
872 retire existing debt or obtain the approval of necessary parties
873 to amend the terms of existing debt, so as to structure the most
874 efficient plan for consolidating the three separate accounts
875 into a single account. Once the accounts are combined into one
876 account, this subparagraph and subparagraph 3. shall be replaced
877 in their entirety by subparagraphs 4. and 5.
878 c. Creditors of the Residential Property and Casualty Joint
879 Underwriting Association and the accounts specified in sub-sub
880 subparagraphs a.(I) and (II) may have a claim against, and
881 recourse to, those accounts and no claim against, or recourse
882 to, the account referred to in sub-sub-subparagraph a.(III).
883 Creditors of the Florida Windstorm Underwriting Association have
884 a claim against, and recourse to, the account referred to in
885 sub-sub-subparagraph a.(III) and no claim against, or recourse
886 to, the accounts referred to in sub-sub-subparagraphs a.(I) and
887 (II).
888 d. Revenues, assets, liabilities, losses, and expenses not
889 attributable to particular accounts shall be prorated among the
890 accounts.
891 e. The Legislature finds that the revenues of the
892 corporation are revenues that are necessary to meet the
893 requirements set forth in documents authorizing the issuance of
894 bonds under this subsection.
895 f. The income of the corporation may not inure to the
896 benefit of any private person.
897 3. With respect to a deficit in an account:
898 a. After accounting for the Citizens policyholder surcharge
899 imposed under sub-subparagraph j., if the remaining projected
900 deficit incurred in the coastal account in a particular calendar
901 year:
902 (I) Is not greater than 2 percent of the aggregate
903 statewide direct written premium for the subject lines of
904 business for the prior calendar year, the entire deficit shall
905 be recovered through regular assessments of assessable insurers
906 under paragraph (q) and assessable insureds.
907 (II) Exceeds 2 percent of the aggregate statewide direct
908 written premium for the subject lines of business for the prior
909 calendar year, the corporation shall levy regular assessments on
910 assessable insurers under paragraph (q) and on assessable
911 insureds in an amount equal to the greater of 2 percent of the
912 projected deficit or 2 percent of the aggregate statewide direct
913 written premium for the subject lines of business for the prior
914 calendar year. Any remaining projected deficit shall be
915 recovered through emergency assessments under sub-subparagraph
916 e.
917 b. Each assessable insurer’s share of the amount being
918 assessed under sub-subparagraph a. must be in the proportion
919 that the assessable insurer’s direct written premium for the
920 subject lines of business for the year preceding the assessment
921 bears to the aggregate statewide direct written premium for the
922 subject lines of business for that year. The assessment
923 percentage applicable to each assessable insured is the ratio of
924 the amount being assessed under sub-subparagraph a. to the
925 aggregate statewide direct written premium for the subject lines
926 of business for the prior year. Assessments levied by the
927 corporation on assessable insurers under sub-subparagraph a.
928 must be paid as required by the corporation’s plan of operation
929 and paragraph (q). Assessments levied by the corporation on
930 assessable insureds under sub-subparagraph a. shall be collected
931 by the surplus lines agent at the time the surplus lines agent
932 collects the surplus lines tax required by s. 626.932, and paid
933 to the Florida Surplus Lines Service Office at the time the
934 surplus lines agent pays the surplus lines tax to that office.
935 Upon receipt of regular assessments from surplus lines agents,
936 the Florida Surplus Lines Service Office shall transfer the
937 assessments directly to the corporation as determined by the
938 corporation.
939 c. The corporation may not levy regular assessments under
940 paragraph (q) pursuant to sub-subparagraph a. or sub
941 subparagraph b. if the three separate accounts in sub-sub
942 subparagraphs 2.a.(I)-(III) have been consolidated into the
943 Citizens account pursuant to sub-subparagraph 2.b. However, the
944 outstanding balance of any regular assessment levied by the
945 corporation before establishment of the Citizens account remains
946 payable to the corporation.
947 b.d. After accounting for the Citizens policyholder
948 surcharge imposed under sub-subparagraph a. j., the remaining
949 projected deficits in the Citizens personal lines account and in
950 the commercial lines account in a particular calendar year shall
951 be recovered through emergency assessments under sub
952 subparagraph c. e.
953 c.e. Upon a determination by the board of governors that a
954 projected deficit in the Citizens an account exceeds the amount
955 that is expected to be recovered through surcharges regular
956 assessments under sub-subparagraph a., plus the amount that is
957 expected to be recovered through surcharges under sub
958 subparagraph j., the board, after verification by the office,
959 shall levy emergency assessments for as many years as necessary
960 to cover the deficits, to be collected by assessable insurers
961 and the corporation and collected from assessable insureds upon
962 issuance or renewal of policies for subject lines of business,
963 excluding National Flood Insurance Program policies. The amount
964 collected in a particular year must be a uniform percentage of
965 that year’s direct written premium for subject lines of business
966 and the Citizens account all accounts of the corporation,
967 excluding National Flood Insurance Program policy premiums, as
968 annually determined by the board and verified by the office. The
969 office shall verify the arithmetic calculations involved in the
970 board’s determination within 30 days after receipt of the
971 information on which the determination was based. The office
972 shall notify assessable insurers and the Florida Surplus Lines
973 Service Office of the date on which assessable insurers shall
974 begin to collect and assessable insureds shall begin to pay such
975 assessment. The date must be at least 90 days after the date the
976 corporation levies emergency assessments pursuant to this sub
977 subparagraph. Notwithstanding any other provision of law, the
978 corporation and each assessable insurer that writes subject
979 lines of business shall collect emergency assessments from its
980 policyholders without such obligation being affected by any
981 credit, limitation, exemption, or deferment. Emergency
982 assessments levied by the corporation on assessable insureds
983 shall be collected by the surplus lines agent at the time the
984 surplus lines agent collects the surplus lines tax required by
985 s. 626.932 and paid to the Florida Surplus Lines Service Office
986 at the time the surplus lines agent pays the surplus lines tax
987 to that office. The emergency assessments collected shall be
988 transferred directly to the corporation on a periodic basis as
989 determined by the corporation and held by the corporation solely
990 in the Citizens applicable account. The aggregate amount of
991 emergency assessments levied for the Citizens an account in any
992 calendar year may be less than but may not exceed the greater of
993 10 percent of the amount needed to cover the deficit, plus
994 interest, fees, commissions, required reserves, and other costs
995 associated with financing the original deficit, or 10 percent of
996 the aggregate statewide direct written premium for subject lines
997 of business and the Citizens account all accounts of the
998 corporation for the prior year, plus interest, fees,
999 commissions, required reserves, and other costs associated with
1000 financing the deficit.
1001 d.f. The corporation may pledge the proceeds of
1002 assessments, projected recoveries from the Florida Hurricane
1003 Catastrophe Fund, other insurance and reinsurance recoverables,
1004 policyholder surcharges and other surcharges, and other funds
1005 available to the corporation as the source of revenue for and to
1006 secure bonds issued under paragraph (q), bonds or other
1007 indebtedness issued under subparagraph (c)3., or lines of credit
1008 or other financing mechanisms issued or created under this
1009 subsection, or to retire any other debt incurred as a result of
1010 deficits or events giving rise to deficits, or in any other way
1011 that the board determines will efficiently recover such
1012 deficits. The purpose of the lines of credit or other financing
1013 mechanisms is to provide additional resources to assist the
1014 corporation in covering claims and expenses attributable to a
1015 catastrophe. As used in this subsection, the term “assessments”
1016 includes emergency regular assessments under sub-subparagraph c.
1017 a. or subparagraph (q)1. and emergency assessments under sub
1018 subparagraph e. Emergency assessments collected under sub
1019 subparagraph c. e. are not part of an insurer’s rates, are not
1020 premium, and are not subject to premium tax, fees, or
1021 commissions; however, failure to pay the emergency assessment
1022 shall be treated as failure to pay premium. The emergency
1023 assessments shall continue as long as any bonds issued or other
1024 indebtedness incurred with respect to a deficit for which the
1025 assessment was imposed remain outstanding, unless adequate
1026 provision has been made for the payment of such bonds or other
1027 indebtedness pursuant to the documents governing such bonds or
1028 indebtedness.
1029 e.g. As used in this subsection and for purposes of any
1030 deficit incurred on or after January 25, 2007, the term “subject
1031 lines of business” means insurance written by assessable
1032 insurers or procured by assessable insureds for all property and
1033 casualty lines of business in this state, but not including
1034 workers’ compensation or medical malpractice. As used in this
1035 sub-subparagraph, the term “property and casualty lines of
1036 business” includes all lines of business identified on Form 2,
1037 Exhibit of Premiums and Losses, in the annual statement required
1038 of authorized insurers under s. 624.424 and any rule adopted
1039 under this section, except for those lines identified as
1040 accident and health insurance and except for policies written
1041 under the National Flood Insurance Program or the Federal Crop
1042 Insurance Program. For purposes of this sub-subparagraph, the
1043 term “workers’ compensation” includes both workers’ compensation
1044 insurance and excess workers’ compensation insurance.
1045 f.h. The Florida Surplus Lines Service Office shall
1046 annually determine annually the aggregate statewide written
1047 premium in subject lines of business procured by assessable
1048 insureds and report that information to the corporation in a
1049 form and at a time the corporation specifies to ensure that the
1050 corporation can meet the requirements of this subsection and the
1051 corporation’s financing obligations.
1052 g.i. The Florida Surplus Lines Service Office shall verify
1053 the proper application by surplus lines agents of assessment
1054 percentages for regular assessments and emergency assessments
1055 levied under this subparagraph on assessable insureds and assist
1056 the corporation in ensuring the accurate, timely collection and
1057 payment of assessments by surplus lines agents as required by
1058 the corporation.
1059 j. Upon determination by the board of governors that an
1060 account has a projected deficit, the board shall levy a Citizens
1061 policyholder surcharge against all policyholders of the
1062 corporation.
1063 (I) The surcharge shall be levied as a uniform percentage
1064 of the premium for the policy of up to 15 percent of such
1065 premium, which funds shall be used to offset the deficit.
1066 (II) The surcharge is payable upon cancellation or
1067 termination of the policy, upon renewal of the policy, or upon
1068 issuance of a new policy by the corporation within the first 12
1069 months after the date of the levy or the period of time
1070 necessary to fully collect the surcharge amount.
1071 (III) The corporation may not levy any regular assessments
1072 under paragraph (q) pursuant to sub-subparagraph a. or sub
1073 subparagraph b. with respect to a particular year’s deficit
1074 until the corporation has first levied the full amount of the
1075 surcharge authorized by this sub-subparagraph.
1076 (IV) The surcharge is not considered premium and is not
1077 subject to commissions, fees, or premium taxes. However, failure
1078 to pay the surcharge shall be treated as failure to pay premium.
1079 h.k. If the amount of any assessments or surcharges
1080 collected from corporation policyholders, assessable insurers or
1081 their policyholders, or assessable insureds exceeds the amount
1082 of the deficits, such excess amounts shall be remitted to and
1083 retained by the corporation in a reserve to be used by the
1084 corporation, as determined by the board of governors and
1085 approved by the office, to pay claims or reduce any past,
1086 present, or future plan-year deficits or to reduce outstanding
1087 debt.
1088 4. The Citizens account, if established by the corporation
1089 pursuant to sub-subparagraph 2.b., is authorized to provide:
1090 a. Personal residential policies that provide
1091 comprehensive, multiperil coverage on risks that are not located
1092 in areas eligible for coverage by the Florida Windstorm
1093 Underwriting Association, as those areas were defined on January
1094 1, 2002, and for policies that do not provide coverage for the
1095 peril of wind on risks that are located in such areas;
1096 b. Commercial residential and commercial nonresidential
1097 policies that provide coverage for basic property perils on
1098 risks that are not located in areas eligible for coverage by the
1099 Florida Windstorm Underwriting Association, as those areas were
1100 defined on January 1, 2002, and for policies that do not provide
1101 coverage for the peril of wind on risks that are located in such
1102 areas; and
1103 c. Personal residential policies and commercial residential
1104 and commercial nonresidential property policies that provide
1105 coverage for the peril of wind on risks that are located in
1106 areas eligible for coverage by the Florida Windstorm
1107 Underwriting Association, as those areas were defined on January
1108 1, 2002. The corporation may offer policies that provide
1109 multiperil coverage and shall offer policies that provide
1110 coverage only for the peril of wind for risks located in areas
1111 eligible for coverage by the Florida Windstorm Underwriting
1112 Association, as those areas were defined on January 1, 2002. The
1113 corporation may not offer new commercial residential policies
1114 providing multiperil coverage, but shall continue to offer
1115 commercial residential wind-only policies, and may offer
1116 commercial residential policies excluding wind. However, the
1117 corporation may continue to renew a commercial residential
1118 multiperil policy on a building that was insured by the
1119 corporation on June 30, 2014, under a multiperil policy. In
1120 issuing multiperil coverage under this sub-subparagraph, the
1121 corporation may use its approved policy forms and rates for
1122 risks located in areas not eligible for coverage by the Florida
1123 Windstorm Underwriting Association as those areas were defined
1124 on January 1, 2002, and for policies that do not provide
1125 coverage for the peril of wind on risks that are located in such
1126 areas. An applicant or insured who is eligible to purchase a
1127 multiperil policy from the corporation may purchase a multiperil
1128 policy from an authorized insurer without prejudice to the
1129 applicant’s or insured’s eligibility to prospectively purchase a
1130 policy that provides coverage only for the peril of wind from
1131 the corporation. An applicant or insured who is eligible for a
1132 corporation policy that provides coverage only for the peril of
1133 wind may elect to purchase or retain such policy and also
1134 purchase or retain coverage excluding wind from an authorized
1135 insurer without prejudice to the applicant’s or insured’s
1136 eligibility to prospectively purchase a policy that provides
1137 multiperil coverage from the corporation. The following
1138 policies, which provide coverage only for the peril of wind,
1139 must also include quota share primary insurance under
1140 subparagraph (c)2.: Personal residential policies and commercial
1141 residential and commercial nonresidential property policies that
1142 provide coverage for the peril of wind on risks that are located
1143 in areas eligible for coverage by the Florida Windstorm
1144 Underwriting Association, as those areas were defined on January
1145 1, 2002; policies that provide multiperil coverage, if offered
1146 by the corporation, and policies that provide coverage only for
1147 the peril of wind for risks located in areas eligible for
1148 coverage by the Florida Windstorm Underwriting Association, as
1149 those areas were defined on January 1, 2002; commercial
1150 residential wind-only policies; commercial residential policies
1151 excluding wind, if offered by the corporation; and commercial
1152 residential multiperil policies on a building that was insured
1153 by the corporation on June 30, 2014. The area eligible for
1154 coverage with the corporation under this sub-subparagraph
1155 includes the area within Port Canaveral, which is bordered on
1156 the south by the City of Cape Canaveral, bordered on the west by
1157 the Banana River, and bordered on the north by Federal
1158 Government property.
1159 5. With respect to a deficit in the Citizens account:
1160 a. Upon a determination by the board of governors that the
1161 Citizens account has a projected deficit, the board shall levy a
1162 Citizens policyholder surcharge against all policyholders of the
1163 corporation.
1164 (I) The surcharge shall be levied as a uniform percentage
1165 of the premium for the policy of up to 15 percent of such
1166 premium, which funds shall be used to offset the deficit.
1167 (II) The surcharge is payable upon cancellation or
1168 termination of the policy, upon renewal of the policy, or upon
1169 issuance of a new policy by the corporation within the first 12
1170 months after the date of the levy or the period of time
1171 necessary to fully collect the surcharge amount.
1172 (III) The surcharge is not considered premium and is not
1173 subject to commissions, fees, or premium taxes. However, failure
1174 to pay the surcharge shall be treated as failure to pay premium.
1175 b. After accounting for the Citizens policyholder surcharge
1176 imposed under sub-subparagraph a., the remaining projected
1177 deficit incurred in the Citizens account in a particular
1178 calendar year shall be recovered through emergency assessments
1179 under sub-subparagraph c.
1180 c. Upon a determination by the board of governors that a
1181 projected deficit in the Citizens account exceeds the amount
1182 that is expected to be recovered through surcharges under sub
1183 subparagraph a., the board, after verification by the office,
1184 shall levy emergency assessments for as many years as necessary
1185 to cover the deficits, to be collected by assessable insurers
1186 and the corporation and collected from assessable insureds upon
1187 issuance or renewal of policies for subject lines of business,
1188 excluding National Flood Insurance Program policies. The amount
1189 collected in a particular year must be a uniform percentage of
1190 that year’s direct written premium for subject lines of business
1191 and the Citizens account, National Flood Insurance Program
1192 policy premiums, as annually determined by the board and
1193 verified by the office. The office shall verify the arithmetic
1194 calculations involved in the board’s determination within 30
1195 days after receipt of the information on which the determination
1196 was based. The office shall notify assessable insurers and the
1197 Florida Surplus Lines Service Office of the date on which
1198 assessable insurers shall begin to collect and assessable
1199 insureds shall begin to pay such assessment. The date must be at
1200 least 90 days after the date the corporation levies emergency
1201 assessments pursuant to this sub-subparagraph. Notwithstanding
1202 any other law, the corporation and each assessable insurer that
1203 writes subject lines of business shall collect emergency
1204 assessments from its policyholders without such obligation being
1205 affected by any credit, limitation, exemption, or deferment.
1206 Emergency assessments levied by the corporation on assessable
1207 insureds shall be collected by the surplus lines agent at the
1208 time the surplus lines agent collects the surplus lines tax
1209 required by s. 626.932 and paid to the Florida Surplus Lines
1210 Service Office at the time the surplus lines agent pays the
1211 surplus lines tax to that office. The emergency assessments
1212 collected shall be transferred directly to the corporation on a
1213 periodic basis as determined by the corporation and held by the
1214 corporation solely in the Citizens account. The aggregate amount
1215 of emergency assessments levied for the Citizens account in any
1216 calendar year may be less than, but may not exceed the greater
1217 of, 10 percent of the amount needed to cover the deficit, plus
1218 interest, fees, commissions, required reserves, and other costs
1219 associated with financing the original deficit or 10 percent of
1220 the aggregate statewide direct written premium for subject lines
1221 of business and the Citizens accounts for the prior year, plus
1222 interest, fees, commissions, required reserves, and other costs
1223 associated with financing the deficit.
1224 d. The corporation may pledge the proceeds of assessments,
1225 projected recoveries from the Florida Hurricane Catastrophe
1226 Fund, other insurance and reinsurance recoverables, policyholder
1227 surcharges and other surcharges, and other funds available to
1228 the corporation as the source of revenue for and to secure bonds
1229 issued under paragraph (q), bonds or other indebtedness issued
1230 under subparagraph (c)3., or lines of credit or other financing
1231 mechanisms issued or created under this subsection; or to retire
1232 any other debt incurred as a result of deficits or events giving
1233 rise to deficits, or in any other way that the board determines
1234 will efficiently recover such deficits. The purpose of the lines
1235 of credit or other financing mechanisms is to provide additional
1236 resources to assist the corporation in covering claims and
1237 expenses attributable to a catastrophe. As used in this
1238 subsection, the term “assessments” includes emergency
1239 assessments under sub-subparagraph c. Emergency assessments
1240 collected under sub-subparagraph c. are not part of an insurer’s
1241 rates, are not premium, and are not subject to premium tax,
1242 fees, or commissions; however, failure to pay the emergency
1243 assessment shall be treated as failure to pay premium. The
1244 emergency assessments shall continue as long as any bonds issued
1245 or other indebtedness incurred with respect to a deficit for
1246 which the assessment was imposed remain outstanding, unless
1247 adequate provision has been made for the payment of such bonds
1248 or other indebtedness pursuant to the documents governing such
1249 bonds or indebtedness.
1250 e. As used in this subsection and for purposes of any
1251 deficit incurred on or after January 25, 2007, the term “subject
1252 lines of business” means insurance written by assessable
1253 insurers or procured by assessable insureds for all property and
1254 casualty lines of business in this state, but not including
1255 workers’ compensation or medical malpractice. As used in this
1256 sub-subparagraph, the term “property and casualty lines of
1257 business” includes all lines of business identified on Form 2,
1258 Exhibit of Premiums and Losses, in the annual statement required
1259 of authorized insurers under s. 624.424 and any rule adopted
1260 under this section, except for those lines identified as
1261 accident and health insurance and except for policies written
1262 under the National Flood Insurance Program or the Federal Crop
1263 Insurance Program. For purposes of this sub-subparagraph, the
1264 term “workers’ compensation” includes both workers’ compensation
1265 insurance and excess workers’ compensation insurance.
1266 f. The Florida Surplus Lines Service Office shall annually
1267 determine the aggregate statewide written premium in subject
1268 lines of business procured by assessable insureds and report
1269 that information to the corporation in a form and at a time the
1270 corporation specifies to ensure that the corporation can meet
1271 the requirements of this subsection and the corporation’s
1272 financing obligations.
1273 g. The Florida Surplus Lines Service Office shall verify
1274 the proper application by surplus lines agents of assessment
1275 percentages for emergency assessments levied under this
1276 subparagraph on assessable insureds and assist the corporation
1277 in ensuring the accurate, timely collection and payment of
1278 assessments by surplus lines agents as required by the
1279 corporation.
1280 h. If the amount of any assessments or surcharges collected
1281 from corporation policyholders, assessable insurers or their
1282 policyholders, or assessable insureds exceeds the amount of the
1283 deficits, such excess amounts shall be remitted to and retained
1284 by the corporation in a reserve to be used by the corporation,
1285 as determined by the board of governors and approved by the
1286 office, to pay claims or reduce any past, present, or future
1287 plan-year deficits or to reduce outstanding debt.
1288 (c) The corporation’s plan of operation:
1289 1. Must provide for adoption of residential property and
1290 casualty insurance policy forms and commercial residential and
1291 nonresidential property insurance forms, which must be approved
1292 by the office before use. The corporation shall adopt the
1293 following policy forms:
1294 a. Standard personal lines policy forms that are
1295 comprehensive multiperil policies providing full coverage of a
1296 residential property equivalent to the coverage provided in the
1297 private insurance market under an HO-3, HO-4, or HO-6 policy.
1298 b. Basic personal lines policy forms that are policies
1299 similar to an HO-8 policy or a dwelling fire policy that provide
1300 coverage meeting the requirements of the secondary mortgage
1301 market, but which is more limited than the coverage under a
1302 standard policy.
1303 c. Commercial lines residential and nonresidential policy
1304 forms that are generally similar to the basic perils of full
1305 coverage obtainable for commercial residential structures and
1306 commercial nonresidential structures in the admitted voluntary
1307 market.
1308 d. Personal lines and commercial lines residential property
1309 insurance forms that cover the peril of wind only. The forms are
1310 applicable only to residential properties located in areas
1311 eligible for coverage by the Florida Windstorm Underwriting
1312 Association, as those areas were defined on January 1, 2002.
1313 e. Commercial lines nonresidential property insurance forms
1314 that cover the peril of wind only. The forms are applicable only
1315 to nonresidential properties located in areas eligible for
1316 coverage by the Florida Windstorm Underwriting Association, as
1317 those areas were defined on January 1, 2002.
1318 f. The corporation may adopt variations of the policy forms
1319 listed in sub-subparagraphs a.-e. which contain more restrictive
1320 coverage.
1321 g. The corporation shall offer a basic personal lines
1322 policy similar to an HO-8 policy with dwelling repair based on
1323 common construction materials and methods.
1324 2. Must provide that the corporation adopt a program in
1325 which the corporation and authorized insurers enter into quota
1326 share primary insurance agreements for hurricane coverage, as
1327 defined in s. 627.4025(2)(a), for eligible risks, and adopt
1328 property insurance forms for eligible risks which cover the
1329 peril of wind only.
1330 a. As used in this subsection, the term:
1331 (I) “Approved surplus lines insurer” means an eligible
1332 surplus lines insurer that:
1333 (A) Has a financial strength rating of “A-” or higher from
1334 A.M. Best Company;
1335 (B) Has a personal lines residential risk program that is
1336 managed by a Florida resident surplus lines broker;
1337 (C) Applies to the office to participate in the take-out
1338 process to offer coverage to applicants for new coverage from
1339 the corporation or current policyholders of the corporation
1340 through a take-out plan approved by the office;
1341 (D) Files rates for review as part of a take-out plan with
1342 the office. The office shall review whether the premium is more
1343 than 20 percent greater than the premium for comparable coverage
1344 from the corporation; and
1345 (E) Provides data to the office related to coverage and
1346 rates in a format promulgated by the commission.
1347 (III) “Primary residence” means the dwelling that is the
1348 policyholder’s primary home or is a rental property that is the
1349 primary home of the tenant, and which the policyholder or tenant
1350 occupies for more than 9 months of each year.
1351 (IV)(I) “Quota share primary insurance” means an
1352 arrangement in which the primary hurricane coverage of an
1353 eligible risk is provided in specified percentages by the
1354 corporation and an authorized insurer. The corporation and
1355 authorized insurer are each solely responsible for a specified
1356 percentage of hurricane coverage of an eligible risk as set
1357 forth in a quota share primary insurance agreement between the
1358 corporation and an authorized insurer and the insurance
1359 contract. The responsibility of the corporation or authorized
1360 insurer to pay its specified percentage of hurricane losses of
1361 an eligible risk, as set forth in the agreement, may not be
1362 altered by the inability of the other party to pay its specified
1363 percentage of losses. Eligible risks that are provided hurricane
1364 coverage through a quota share primary insurance arrangement
1365 must be provided policy forms that set forth the obligations of
1366 the corporation and authorized insurer under the arrangement,
1367 clearly specify the percentages of quota share primary insurance
1368 provided by the corporation and authorized insurer, and
1369 conspicuously and clearly state that the authorized insurer and
1370 the corporation may not be held responsible beyond their
1371 specified percentage of coverage of hurricane losses.
1372 (II) “Eligible risks” means personal lines residential and
1373 commercial lines residential risks that meet the underwriting
1374 criteria of the corporation and are located in areas that were
1375 eligible for coverage by the Florida Windstorm Underwriting
1376 Association on January 1, 2002.
1377 b. The corporation may enter into quota share primary
1378 insurance agreements with authorized insurers at corporation
1379 coverage levels of 90 percent and 50 percent.
1380 c. If the corporation determines that additional coverage
1381 levels are necessary to maximize participation in quota share
1382 primary insurance agreements by authorized insurers, the
1383 corporation may establish additional coverage levels. However,
1384 the corporation’s quota share primary insurance coverage level
1385 may not exceed 90 percent.
1386 d. Any quota share primary insurance agreement entered into
1387 between an authorized insurer and the corporation must provide
1388 for a uniform specified percentage of coverage of hurricane
1389 losses, by county or territory as set forth by the corporation
1390 board, for all eligible risks of the authorized insurer covered
1391 under the agreement.
1392 e. Any quota share primary insurance agreement entered into
1393 between an authorized insurer and the corporation is subject to
1394 review and approval by the office. However, such agreement shall
1395 be authorized only as to insurance contracts entered into
1396 between an authorized insurer and an insured who is already
1397 insured by the corporation for wind coverage.
1398 f. For all eligible risks covered under quota share primary
1399 insurance agreements, the exposure and coverage levels for both
1400 the corporation and authorized insurers shall be reported by the
1401 corporation to the Florida Hurricane Catastrophe Fund. For all
1402 policies of eligible risks covered under such agreements, the
1403 corporation and the authorized insurer must maintain complete
1404 and accurate records for the purpose of exposure and loss
1405 reimbursement audits as required by fund rules. The corporation
1406 and the authorized insurer shall each maintain duplicate copies
1407 of policy declaration pages and supporting claims documents.
1408 g. The corporation board shall establish in its plan of
1409 operation standards for quota share agreements which ensure that
1410 there is no discriminatory application among insurers as to the
1411 terms of the agreements, pricing of the agreements, incentive
1412 provisions if any, and consideration paid for servicing policies
1413 or adjusting claims.
1414 h. The quota share primary insurance agreement between the
1415 corporation and an authorized insurer must set forth the
1416 specific terms under which coverage is provided, including, but
1417 not limited to, the sale and servicing of policies issued under
1418 the agreement by the insurance agent of the authorized insurer
1419 producing the business, the reporting of information concerning
1420 eligible risks, the payment of premium to the corporation, and
1421 arrangements for the adjustment and payment of hurricane claims
1422 incurred on eligible risks by the claims adjuster and personnel
1423 of the authorized insurer. Entering into a quota sharing
1424 insurance agreement between the corporation and an authorized
1425 insurer is voluntary and at the discretion of the authorized
1426 insurer.
1427 3. May provide that the corporation may employ or otherwise
1428 contract with individuals or other entities to provide
1429 administrative or professional services that may be appropriate
1430 to effectuate the plan. The corporation may borrow funds by
1431 issuing bonds or by incurring other indebtedness, and shall have
1432 other powers reasonably necessary to effectuate the requirements
1433 of this subsection, including, without limitation, the power to
1434 issue bonds and incur other indebtedness in order to refinance
1435 outstanding bonds or other indebtedness. The corporation may
1436 seek judicial validation of its bonds or other indebtedness
1437 under chapter 75. The corporation may issue bonds or incur other
1438 indebtedness, or have bonds issued on its behalf by a unit of
1439 local government pursuant to subparagraph (q)2. in the absence
1440 of a hurricane or other weather-related event, upon a
1441 determination by the corporation, subject to approval by the
1442 office, that such action would enable it to efficiently meet the
1443 financial obligations of the corporation and that such
1444 financings are reasonably necessary to effectuate the
1445 requirements of this subsection. The corporation may take all
1446 actions needed to facilitate tax-free status for such bonds or
1447 indebtedness, including formation of trusts or other affiliated
1448 entities. The corporation may pledge assessments, projected
1449 recoveries from the Florida Hurricane Catastrophe Fund, other
1450 reinsurance recoverables, policyholder surcharges and other
1451 surcharges, and other funds available to the corporation as
1452 security for bonds or other indebtedness. In recognition of s.
1453 10, Art. I of the State Constitution, prohibiting the impairment
1454 of obligations of contracts, it is the intent of the Legislature
1455 that no action be taken whose purpose is to impair any bond
1456 indenture or financing agreement or any revenue source committed
1457 by contract to such bond or other indebtedness.
1458 4. Must require that the corporation operate subject to the
1459 supervision and approval of a board of governors consisting of
1460 nine individuals who are residents of this state and who are
1461 from different geographical areas of the state, one of whom is
1462 appointed by the Governor and serves solely to advocate on
1463 behalf of the consumer. The appointment of a consumer
1464 representative by the Governor is deemed to be within the scope
1465 of the exemption provided in s. 112.313(7)(b) and is in addition
1466 to the appointments authorized under sub-subparagraph a.
1467 a. The Governor, the Chief Financial Officer, the President
1468 of the Senate, and the Speaker of the House of Representatives
1469 shall each appoint two members of the board. At least one of the
1470 two members appointed by each appointing officer must have
1471 demonstrated expertise in insurance and be deemed to be within
1472 the scope of the exemption provided in s. 112.313(7)(b). The
1473 Chief Financial Officer shall designate one of the appointees as
1474 chair. All board members serve at the pleasure of the appointing
1475 officer. All members of the board are subject to removal at will
1476 by the officers who appointed them. All board members, including
1477 the chair, must be appointed to serve for 3-year terms beginning
1478 annually on a date designated by the plan. However, for the
1479 first term beginning on or after July 1, 2009, each appointing
1480 officer shall appoint one member of the board for a 2-year term
1481 and one member for a 3-year term. A board vacancy shall be
1482 filled for the unexpired term by the appointing officer. The
1483 Chief Financial Officer shall appoint a technical advisory group
1484 to provide information and advice to the board in connection
1485 with the board’s duties under this subsection. The executive
1486 director and senior managers of the corporation shall be engaged
1487 by the board and serve at the pleasure of the board. Any
1488 executive director appointed on or after July 1, 2006, is
1489 subject to confirmation by the Senate. The executive director is
1490 responsible for employing other staff as the corporation may
1491 require, subject to review and concurrence by the board.
1492 b. The board shall create a Market Accountability Advisory
1493 Committee to assist the corporation in developing awareness of
1494 its rates and its customer and agent service levels in
1495 relationship to the voluntary market insurers writing similar
1496 coverage.
1497 (I) The members of the advisory committee consist of the
1498 following 11 persons, one of whom must be elected chair by the
1499 members of the committee: four representatives, one appointed by
1500 the Florida Association of Insurance Agents, one by the Florida
1501 Association of Insurance and Financial Advisors, one by the
1502 Professional Insurance Agents of Florida, and one by the Latin
1503 American Association of Insurance Agencies; three
1504 representatives appointed by the insurers with the three highest
1505 voluntary market share of residential property insurance
1506 business in the state; one representative from the Office of
1507 Insurance Regulation; one consumer appointed by the board who is
1508 insured by the corporation at the time of appointment to the
1509 committee; one representative appointed by the Florida
1510 Association of Realtors; and one representative appointed by the
1511 Florida Bankers Association. All members shall be appointed to
1512 3-year terms and may serve for consecutive terms.
1513 (II) The committee shall report to the corporation at each
1514 board meeting on insurance market issues which may include rates
1515 and rate competition with the voluntary market; service,
1516 including policy issuance, claims processing, and general
1517 responsiveness to policyholders, applicants, and agents; and
1518 matters relating to depopulation.
1519 5. Must provide a procedure for determining the eligibility
1520 of a risk for coverage, as follows:
1521 a. Subject to s. 627.3517, with respect to personal lines
1522 residential risks that are primary residences, if the risk is
1523 offered coverage from an authorized insurer at the insurer’s
1524 approved rate under a standard policy including wind coverage
1525 or, if consistent with the insurer’s underwriting rules as filed
1526 with the office, a basic policy including wind coverage, for a
1527 new application to the corporation for coverage, the risk is not
1528 eligible for any policy issued by the corporation unless the
1529 premium for coverage from the authorized insurer is more than 20
1530 percent greater than the premium for comparable coverage from
1531 the corporation. Whenever an offer of coverage for a personal
1532 lines residential risk that is a primary residence is received
1533 for a policyholder of the corporation at renewal from an
1534 authorized insurer, if the offer is equal to or less than the
1535 corporation’s renewal premium for comparable coverage, the risk
1536 is not eligible for coverage with the corporation for policies
1537 that renew before April 1, 2023; for policies that renew on or
1538 after that date, the risk is not eligible for coverage with the
1539 corporation unless the premium for coverage from the authorized
1540 insurer is more than 20 percent greater than the corporation’s
1541 renewal premium for comparable coverage. If the risk is not able
1542 to obtain such offer, the risk is eligible for a standard policy
1543 including wind coverage or a basic policy including wind
1544 coverage issued by the corporation; however, if the risk could
1545 not be insured under a standard policy including wind coverage
1546 regardless of market conditions, the risk is eligible for a
1547 basic policy including wind coverage unless rejected under
1548 subparagraph 8. The corporation shall determine the type of
1549 policy to be provided on the basis of objective standards
1550 specified in the underwriting manual and based on generally
1551 accepted underwriting practices. A policyholder removed from the
1552 corporation through an assumption agreement does not remain
1553 eligible for coverage from the corporation after the end of the
1554 policy term. However, any policy removed from the corporation
1555 through an assumption agreement remains on the corporation’s
1556 policy forms through the end of the policy term. This sub
1557 subparagraph applies only to risks that are primary residences.
1558 (I) If the risk accepts an offer of coverage through the
1559 market assistance plan or through a mechanism established by the
1560 corporation other than a plan established by s. 627.3518, before
1561 a policy is issued to the risk by the corporation or during the
1562 first 30 days of coverage by the corporation, and the producing
1563 agent who submitted the application to the plan or to the
1564 corporation is not currently appointed by the insurer, the
1565 insurer shall:
1566 (A) Pay to the producing agent of record of the policy for
1567 the first year, an amount that is the greater of the insurer’s
1568 usual and customary commission for the type of policy written or
1569 a fee equal to the usual and customary commission of the
1570 corporation; or
1571 (B) Offer to allow the producing agent of record of the
1572 policy to continue servicing the policy for at least 1 year and
1573 offer to pay the agent the greater of the insurer’s or the
1574 corporation’s usual and customary commission for the type of
1575 policy written.
1576
1577 If the producing agent is unwilling or unable to accept
1578 appointment, the new insurer shall pay the agent in accordance
1579 with sub-sub-sub-subparagraph (A).
1580 (II) If the corporation enters into a contractual agreement
1581 for a take-out plan, the producing agent of record of the
1582 corporation policy is entitled to retain any unearned commission
1583 on the policy, and the insurer shall:
1584 (A) Pay to the producing agent of record, for the first
1585 year, an amount that is the greater of the insurer’s usual and
1586 customary commission for the type of policy written or a fee
1587 equal to the usual and customary commission of the corporation;
1588 or
1589 (B) Offer to allow the producing agent of record to
1590 continue servicing the policy for at least 1 year and offer to
1591 pay the agent the greater of the insurer’s or the corporation’s
1592 usual and customary commission for the type of policy written.
1593
1594 If the producing agent is unwilling or unable to accept
1595 appointment, the new insurer shall pay the agent in accordance
1596 with sub-sub-sub-subparagraph (A).
1597 b. Subject to s. 627.3517, with respect to personal lines
1598 residential risks that are not primary residences, if the risk
1599 is offered coverage from an authorized insurer at the insurer’s
1600 approved rate or from an approved surplus lines insurer at the
1601 rate approved by the office as part of such surplus lines
1602 insurer’s take-out plan for a new application to the corporation
1603 for coverage, the risk is not eligible for any policy issued by
1604 the corporation unless the premium for coverage from the
1605 authorized insurer or approved surplus lines insurer is more
1606 than 20 percent greater than the premium for comparable coverage
1607 from the corporation. Whenever an offer of coverage for a
1608 personal lines residential risk that is not a primary residence
1609 is received for a policyholder of the corporation at renewal
1610 from an authorized insurer at the insurer’s approved rate or an
1611 approved surplus lines insurer at the rate approved by the
1612 office as part of such insurer’s take-out plan, the risk is not
1613 eligible for coverage with the corporation unless the premium
1614 for coverage from the authorized insurer or approved surplus
1615 lines insurer is more than 20 percent greater than the
1616 corporation’s renewal premium for comparable coverage for
1617 policies that renew on or after July 1, 2024. If the risk is not
1618 able to obtain such offer, the risk is eligible for a standard
1619 policy including wind coverage or a basic policy including wind
1620 coverage issued by the corporation. If the risk could not be
1621 insured under a standard policy including wind coverage
1622 regardless of market conditions, the risk is eligible for a
1623 basic policy including wind coverage unless rejected under
1624 subparagraph 8. The corporation shall determine the type of
1625 policy to be provided on the basis of objective standards
1626 specified in the underwriting manual and based on generally
1627 accepted underwriting practices. A policyholder removed from the
1628 corporation through an assumption agreement does not remain
1629 eligible for coverage from the corporation after the end of the
1630 policy term. However, any policy removed from the corporation
1631 through an assumption agreement remains on the corporation’s
1632 policy forms through the end of the policy term.
1633 (I) If the risk accepts an offer of coverage through the
1634 market assistance plan or through a mechanism established by the
1635 corporation other than a plan established by s. 627.3518, before
1636 a policy is issued to the risk by the corporation or during the
1637 first 30 days of coverage by the corporation, and the producing
1638 agent who submitted the application to the plan or to the
1639 corporation is not currently appointed by the insurer, the
1640 insurer must:
1641 (A) Pay to the producing agent of record of the policy, for
1642 the first year, an amount that is the greater of the insurer’s
1643 usual and customary commission for the type of policy written or
1644 a fee equal to the usual and customary commission of the
1645 corporation; or
1646 (B) Offer to allow the producing agent of record of the
1647 policy to continue servicing the policy for at least 1 year and
1648 offer to pay the agent the greater of the insurer’s or the
1649 corporation’s usual and customary commission for the type of
1650 policy written.
1651
1652 If the producing agent is unwilling or unable to accept
1653 appointment, the new insurer must pay the agent in accordance
1654 with sub-sub-sub-subparagraph (A).
1655 (II) If the corporation enters into a contractual agreement
1656 for a take-out plan, the producing agent of record of the
1657 corporation policy is entitled to retain any unearned commission
1658 on the policy, and the insurer must:
1659 (A) Pay to the producing agent of record, for the first
1660 year, an amount that is the greater of the insurer’s usual and
1661 customary commission for the type of policy written or a fee
1662 equal to the usual and customary commission of the corporation;
1663 or
1664 (B) Offer to allow the producing agent of record to
1665 continue servicing the policy for at least 1 year and offer to
1666 pay the agent the greater of the insurer’s or the corporation’s
1667 usual and customary commission for the type of policy written.
1668
1669 If the producing agent is unwilling or unable to accept
1670 appointment, the new insurer shall pay the agent in accordance
1671 with sub-sub-sub-subparagraph (A).
1672 c.b. With respect to commercial lines residential risks,
1673 for a new application to the corporation for coverage, if the
1674 risk is offered coverage under a policy including wind coverage
1675 from an authorized insurer at its approved rate, the risk is not
1676 eligible for a policy issued by the corporation unless the
1677 premium for coverage from the authorized insurer is more than 20
1678 percent greater than the premium for comparable coverage from
1679 the corporation. Whenever an offer of coverage for a commercial
1680 lines residential risk is received for a policyholder of the
1681 corporation at renewal from an authorized insurer, the risk is
1682 not eligible for coverage with the corporation unless the
1683 premium for coverage from the authorized insurer is more than 20
1684 percent greater than the corporation’s renewal premium for
1685 comparable coverage. If the risk is not able to obtain any such
1686 offer, the risk is eligible for a policy including wind coverage
1687 issued by the corporation. A policyholder removed from the
1688 corporation through an assumption agreement remains eligible for
1689 coverage from the corporation until the end of the policy term.
1690 However, any policy removed from the corporation through an
1691 assumption agreement remains on the corporation’s policy forms
1692 through the end of the policy term.
1693 (I) If the risk accepts an offer of coverage through the
1694 market assistance plan or through a mechanism established by the
1695 corporation other than a plan established by s. 627.3518, before
1696 a policy is issued to the risk by the corporation or during the
1697 first 30 days of coverage by the corporation, and the producing
1698 agent who submitted the application to the plan or the
1699 corporation is not currently appointed by the insurer, the
1700 insurer shall:
1701 (A) Pay to the producing agent of record of the policy, for
1702 the first year, an amount that is the greater of the insurer’s
1703 usual and customary commission for the type of policy written or
1704 a fee equal to the usual and customary commission of the
1705 corporation; or
1706 (B) Offer to allow the producing agent of record of the
1707 policy to continue servicing the policy for at least 1 year and
1708 offer to pay the agent the greater of the insurer’s or the
1709 corporation’s usual and customary commission for the type of
1710 policy written.
1711
1712 If the producing agent is unwilling or unable to accept
1713 appointment, the new insurer shall pay the agent in accordance
1714 with sub-sub-sub-subparagraph (A).
1715 (II) If the corporation enters into a contractual agreement
1716 for a take-out plan, the producing agent of record of the
1717 corporation policy is entitled to retain any unearned commission
1718 on the policy, and the insurer shall:
1719 (A) Pay to the producing agent of record, for the first
1720 year, an amount that is the greater of the insurer’s usual and
1721 customary commission for the type of policy written or a fee
1722 equal to the usual and customary commission of the corporation;
1723 or
1724 (B) Offer to allow the producing agent of record to
1725 continue servicing the policy for at least 1 year and offer to
1726 pay the agent the greater of the insurer’s or the corporation’s
1727 usual and customary commission for the type of policy written.
1728
1729 If the producing agent is unwilling or unable to accept
1730 appointment, the new insurer shall pay the agent in accordance
1731 with sub-sub-sub-subparagraph (A).
1732 d.c. For purposes of determining comparable coverage under
1733 sub-subparagraphs a., and b., and c., the comparison must be
1734 based on those forms and coverages that are reasonably
1735 comparable. The corporation may rely on a determination of
1736 comparable coverage and premium made by the producing agent who
1737 submits the application to the corporation, made in the agent’s
1738 capacity as the corporation’s agent. For purposes of comparing
1739 the premium for comparable coverage under sub-subparagraphs a.,
1740 and b., and c. premium includes any surcharge or assessment that
1741 is actually applied to such policy. A comparison may be made
1742 solely of the premium with respect to the main building or
1743 structure only on the following basis: the same Coverage A or
1744 other building limits; the same percentage hurricane deductible
1745 that applies on an annual basis or that applies to each
1746 hurricane for commercial residential property; the same
1747 percentage of ordinance and law coverage, if the same limit is
1748 offered by both the corporation and the authorized insurer or
1749 the approved surplus line insurer; the same mitigation credits,
1750 to the extent the same types of credits are offered both by the
1751 corporation and the authorized insurer or the approved surplus
1752 lines insurer; the same method for loss payment, such as
1753 replacement cost or actual cash value, if the same method is
1754 offered both by the corporation and the authorized insurer in
1755 accordance with underwriting rules; and any other form or
1756 coverage that is reasonably comparable as determined by the
1757 board. If an application is submitted to the corporation for
1758 wind-only coverage on a risk that is located in an area eligible
1759 for coverage by the Florida Windstorm Underwriting Association,
1760 as that area was defined on January 1, 2002, the premium for the
1761 corporation’s wind-only policy plus the premium for the ex-wind
1762 policy that is offered by an authorized insurer to the applicant
1763 must be compared to the premium for multiperil coverage offered
1764 by an authorized insurer, subject to the standards for
1765 comparison specified in this subparagraph. If the corporation or
1766 the applicant requests from the authorized insurer or the
1767 approved surplus lines insurer a breakdown of the premium of the
1768 offer by types of coverage so that a comparison may be made by
1769 the corporation or its agent and the authorized insurer or the
1770 approved surplus lines insurer refuses or is unable to provide
1771 such information, the corporation may treat the offer as not
1772 being an offer of coverage from an authorized insurer at the
1773 insurer’s approved rate.
1774 6. Must include rules for classifications of risks and
1775 rates.
1776 7. Must provide that if premium and investment income:
1777 a. for the Citizens an account, which are attributable to a
1778 particular calendar year, are in excess of projected losses and
1779 expenses for the Citizens account attributable to that year,
1780 such excess shall be held in surplus in the Citizens account.
1781 Such surplus must be available to defray deficits in the
1782 Citizens that account as to future years and used for that
1783 purpose before assessing assessable insurers and assessable
1784 insureds as to any calendar year; or
1785 b. For the Citizens account, if established by the
1786 corporation, which are attributable to a particular calendar
1787 year are in excess of projected losses and expenses for the
1788 Citizens account attributable to that year, such excess shall be
1789 held in surplus in the Citizens account. Such surplus must be
1790 available to defray deficits in the Citizens account as to
1791 future years and used for that purpose before assessing
1792 assessable insurers and assessable insureds as to any calendar
1793 year.
1794 8. Must provide objective criteria and procedures to be
1795 uniformly applied to all applicants in determining whether an
1796 individual risk is so hazardous as to be uninsurable. In making
1797 this determination and in establishing the criteria and
1798 procedures, the following must be considered:
1799 a. Whether the likelihood of a loss for the individual risk
1800 is substantially higher than for other risks of the same class;
1801 and
1802 b. Whether the uncertainty associated with the individual
1803 risk is such that an appropriate premium cannot be determined.
1804
1805 The acceptance or rejection of a risk by the corporation shall
1806 be construed as the private placement of insurance, and the
1807 provisions of chapter 120 do not apply.
1808 9. Must provide that the corporation make its best efforts
1809 to procure catastrophe reinsurance at reasonable rates, to cover
1810 its projected 100-year probable maximum loss as determined by
1811 the board of governors. If catastrophe reinsurance is not
1812 available at reasonable rates, the corporation need not purchase
1813 it, but the corporation shall include the costs of reinsurance
1814 to cover its projected 100-year probable maximum loss in its
1815 rate calculations even if it does not purchase catastrophe
1816 reinsurance.
1817 10. The policies issued by the corporation must provide
1818 that if the corporation or the market assistance plan obtains an
1819 offer from an authorized insurer to cover the risk at its
1820 approved rates, the risk is no longer eligible for renewal
1821 through the corporation, except as otherwise provided in this
1822 subsection.
1823 11. Corporation policies and applications must include a
1824 notice that the corporation policy could, under this section, be
1825 replaced with a policy issued by an authorized insurer which
1826 does not provide coverage identical to the coverage provided by
1827 the corporation. The notice must also specify that acceptance of
1828 corporation coverage creates a conclusive presumption that the
1829 applicant or policyholder is aware of this potential.
1830 12. May establish, subject to approval by the office,
1831 different eligibility requirements and operational procedures
1832 for any line or type of coverage for any specified county or
1833 area if the board determines that such changes are justified due
1834 to the voluntary market being sufficiently stable and
1835 competitive in such area or for such line or type of coverage
1836 and that consumers who, in good faith, are unable to obtain
1837 insurance through the voluntary market through ordinary methods
1838 continue to have access to coverage from the corporation. If
1839 coverage is sought in connection with a real property transfer,
1840 the requirements and procedures may not provide an effective
1841 date of coverage later than the date of the closing of the
1842 transfer as established by the transferor, the transferee, and,
1843 if applicable, the lender.
1844 13. Must provide that:
1845 a. With respect to the coastal account, any assessable
1846 insurer with a surplus as to policyholders of $25 million or
1847 less writing 25 percent or more of its total countrywide
1848 property insurance premiums in this state may petition the
1849 office, within the first 90 days of each calendar year, to
1850 qualify as a limited apportionment company. A regular assessment
1851 levied by the corporation on a limited apportionment company for
1852 a deficit incurred by the corporation for the coastal account
1853 may be paid to the corporation on a monthly basis as the
1854 assessments are collected by the limited apportionment company
1855 from its insureds, but a limited apportionment company must
1856 begin collecting the regular assessments not later than 90 days
1857 after the regular assessments are levied by the corporation, and
1858 the regular assessments must be paid in full within 15 months
1859 after being levied by the corporation. A limited apportionment
1860 company shall collect from its policyholders any emergency
1861 assessment imposed under sub-subparagraph (b)3.e. The plan must
1862 provide that, if the office determines that any regular
1863 assessment will result in an impairment of the surplus of a
1864 limited apportionment company, the office may direct that all or
1865 part of such assessment be deferred as provided in subparagraph
1866 (q)4. However, an emergency assessment to be collected from
1867 policyholders under sub-subparagraph (b)3.e. may not be limited
1868 or deferred; or
1869 b. With respect to the Citizens account, if established by
1870 the corporation pursuant to sub-subparagraph (b)2.b., any
1871 assessable insurer with a surplus as to policyholders of $25
1872 million or less and writing 25 percent or more of its total
1873 countrywide property insurance premiums in this state may
1874 petition the office, within the first 90 days of each calendar
1875 year, to qualify as a limited apportionment company. A limited
1876 apportionment company shall collect from its policyholders any
1877 emergency assessment imposed under sub-subparagraph (b)5.c. An
1878 emergency assessment to be collected from policyholders under
1879 sub-subparagraph (b)5.c. may not be limited or deferred.
1880 14. Must provide that the corporation appoint as its
1881 licensed agents only those agents who throughout such
1882 appointments also hold an appointment as defined in s. 626.015
1883 by at least three insurers an insurer who are is authorized to
1884 write and are is actually writing or renewing personal lines
1885 residential property coverage, commercial residential property
1886 coverage, or commercial nonresidential property coverage within
1887 the state.
1888 14.15. Must provide a premium payment plan option to its
1889 policyholders which, at a minimum, allows for quarterly and
1890 semiannual payment of premiums. A monthly payment plan may, but
1891 is not required to, be offered.
1892 15.16. Must limit coverage on mobile homes or manufactured
1893 homes built before 1994 to actual cash value of the dwelling
1894 rather than replacement costs of the dwelling.
1895 16.17. Must provide coverage for manufactured or mobile
1896 home dwellings. Such coverage must also include the following
1897 attached structures:
1898 a. Screened enclosures that are aluminum framed or screened
1899 enclosures that are not covered by the same or substantially the
1900 same materials as those of the primary dwelling;
1901 b. Carports that are aluminum or carports that are not
1902 covered by the same or substantially the same materials as those
1903 of the primary dwelling; and
1904 c. Patios that have a roof covering that is constructed of
1905 materials that are not the same or substantially the same
1906 materials as those of the primary dwelling.
1907
1908 The corporation shall make available a policy for mobile homes
1909 or manufactured homes for a minimum insured value of at least
1910 $3,000.
1911 17.18. May provide such limits of coverage as the board
1912 determines, consistent with the requirements of this subsection.
1913 18.19. May require commercial property to meet specified
1914 hurricane mitigation construction features as a condition of
1915 eligibility for coverage.
1916 19.20. Must provide that new or renewal policies issued by
1917 the corporation on or after January 1, 2012, which cover
1918 sinkhole loss do not include coverage for any loss to
1919 appurtenant structures, driveways, sidewalks, decks, or patios
1920 that are directly or indirectly caused by sinkhole activity. The
1921 corporation shall exclude such coverage using a notice of
1922 coverage change, which may be included with the policy renewal,
1923 and not by issuance of a notice of nonrenewal of the excluded
1924 coverage upon renewal of the current policy.
1925 20.a.21.a. As of January 1, 2012, unless the Citizens
1926 account has been established pursuant to sub-subparagraph
1927 (b)2.b., Must require that the agent obtain from an applicant
1928 for coverage from the corporation an acknowledgment signed by
1929 the applicant, which includes, at a minimum, the following
1930 statement:
1931
1932 ACKNOWLEDGMENT OF POTENTIAL SURCHARGE
1933 AND ASSESSMENT LIABILITY:
1934
1935 1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
1936 CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
1937 DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
1938 MY POLICY COULD BE SUBJECT TO SURCHARGES AND ASSESSMENTS, WHICH
1939 WILL BE DUE AND PAYABLE UPON RENEWAL, CANCELLATION, OR
1940 TERMINATION OF THE POLICY, AND THAT THE SURCHARGES AND
1941 ASSESSMENTS COULD BE AS HIGH AS 25 45 PERCENT OF MY PREMIUM, OR
1942 A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA LEGISLATURE.
1943 2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
1944 SURCHARGE, WHICH COULD BE AS HIGH AS 15 45 PERCENT OF MY
1945 PREMIUM, BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND
1946 THAT TO BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY
1947 TO OBTAIN PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR
1948 RENEWING COVERAGE WITH CITIZENS. I UNDERSTAND THAT PRIVATE
1949 MARKET INSURANCE RATES ARE REGULATED AND APPROVED BY THE STATE.
1950 3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
1951 ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
1952 INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
1953 FLORIDA LEGISLATURE.
1954 4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
1955 CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
1956 STATE OF FLORIDA.
1957
1958 b. The corporation must require, if it has established the
1959 Citizens account pursuant to sub-subparagraph (b)2.b., that the
1960 agent obtain from an applicant for coverage from the corporation
1961 the following acknowledgment signed by the applicant, which
1962 includes, at a minimum, the following statement:
1963
1964 ACKNOWLEDGMENT OF POTENTIAL SURCHARGE
1965 AND ASSESSMENT LIABILITY:
1966
1967 1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
1968 CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
1969 DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
1970 MY POLICY COULD BE SUBJECT TO SURCHARGES AND ASSESSMENTS, WHICH
1971 WILL BE DUE AND PAYABLE UPON RENEWAL, CANCELLATION, OR
1972 TERMINATION OF THE POLICY, AND THAT THE SURCHARGES AND
1973 ASSESSMENTS COULD BE AS HIGH AS 25 PERCENT OF MY PREMIUM, OR A
1974 DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA LEGISLATURE.
1975 2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
1976 SURCHARGE, WHICH COULD BE AS HIGH AS 15 PERCENT OF MY PREMIUM,
1977 BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND THAT TO
1978 BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN
1979 PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR RENEWING COVERAGE
1980 WITH CITIZENS. I UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES
1981 ARE REGULATED AND APPROVED BY THE STATE.
1982 3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
1983 ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
1984 INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
1985 FLORIDA LEGISLATURE.
1986 4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
1987 CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
1988 STATE OF FLORIDA.
1989
1990 b.c. The corporation shall maintain, in electronic format
1991 or otherwise, a copy of the applicant’s signed acknowledgment
1992 and provide a copy of the statement to the policyholder as part
1993 of the first renewal after the effective date of sub
1994 subparagraph a. or sub-subparagraph b., as applicable.
1995 c.d. The signed acknowledgment form creates a conclusive
1996 presumption that the policyholder understood and accepted his or
1997 her potential surcharge and assessment liability as a
1998 policyholder of the corporation.
1999 (e) The corporation is subject to s. 287.057 for the
2000 purchase of commodities and contractual services except as
2001 otherwise provided in this paragraph. Services provided by
2002 tradepersons or technical experts to assist a licensed adjuster
2003 in the evaluation of individual claims are not subject to the
2004 procurement requirements of this section. Additionally, the
2005 procurement of financial services providers and underwriters
2006 must be made pursuant to s. 627.3513. Contracts for goods or
2007 services valued at or more than $100,000 are subject to approval
2008 by the board.
2009 1. The corporation is an agency for purposes of s. 287.057,
2010 except that, for purposes of s. 287.057(24), the corporation is
2011 an eligible user.
2012 a. The authority of the Department of Management Services
2013 and the Chief Financial Officer under s. 287.057 extends to the
2014 corporation as if the corporation were an agency.
2015 b. The executive director of the corporation is the agency
2016 head under s. 287.057, except for resolution of bid protests for
2017 which the board would serve as the agency head. The executive
2018 director of the corporation may assign or appoint a designee to
2019 act on his or her behalf.
2020 2. The corporation must provide notice of a decision or
2021 intended decision concerning a solicitation, contract award, or
2022 exceptional purchase by electronic posting. Such notice must
2023 contain the following statement: “Failure to file a protest
2024 within the time prescribed in this section constitutes a waiver
2025 of proceedings.”
2026 a. A person adversely affected by the corporation’s
2027 decision or intended decision to award a contract pursuant to s.
2028 287.057(1) or (3)(c) who elects to challenge the decision must
2029 file a written notice of protest with the executive director of
2030 the corporation within 72 hours after the corporation posts a
2031 notice of its decision or intended decision. For a protest of
2032 the terms, conditions, and specifications contained in a
2033 solicitation, including provisions governing the methods for
2034 ranking bids, proposals, replies, awarding contracts, reserving
2035 rights of further negotiation, or modifying or amending any
2036 contract, the notice of protest must be filed in writing within
2037 72 hours after posting the solicitation. Saturdays, Sundays, and
2038 state holidays are excluded in the computation of the 72-hour
2039 time period.
2040 b. A formal written protest must be filed within 10 days
2041 after the date the notice of protest is filed. The formal
2042 written protest must state with particularity the facts and law
2043 upon which the protest is based. Upon receipt of a formal
2044 written protest that has been timely filed, the corporation must
2045 stop the solicitation or contract award process until the
2046 subject of the protest is resolved by final board action unless
2047 the executive director sets forth in writing particular facts
2048 and circumstances that require the continuance of the
2049 solicitation or contract award process without delay in order to
2050 avoid an immediate and serious danger to the public health,
2051 safety, or welfare.
2052 (I) The corporation must provide an opportunity to resolve
2053 the protest by mutual agreement between the parties within 7
2054 business days after receipt of the formal written protest.
2055 (II) If the subject of a protest is not resolved by mutual
2056 agreement within 7 business days, the corporation’s board must
2057 transmit the protest to the Division of Administrative Hearings
2058 and contract with the division to conduct a hearing to determine
2059 the merits of the protest and to issue a recommended order. The
2060 contract must provide for the corporation to reimburse the
2061 division for any costs incurred by the division for court
2062 reporters, transcript preparation, travel, facility rental, and
2063 other customary hearing costs in the manner set forth in s.
2064 120.65(9). The division has jurisdiction to determine the facts
2065 and law concerning the protest and to issue a recommended order.
2066 The division’s rules and procedures apply to these proceedings;
2067 the division’s applicable bond requirements do not apply. The
2068 protest must be heard by the division at a publicly noticed
2069 meeting in accordance with procedures established by the
2070 division.
2071 c. In a protest of an invitation-to-bid or request-for
2072 proposals procurement, submissions made after the bid or
2073 proposal opening which amend or supplement the bid or proposal
2074 may not be considered. In protesting an invitation-to-negotiate
2075 procurement, submissions made after the corporation announces
2076 its intent to award a contract, reject all replies, or withdraw
2077 the solicitation that amends or supplements the reply may not be
2078 considered. Unless otherwise provided by law, the burden of
2079 proof rests with the party protesting the corporation’s action.
2080 In a competitive-procurement protest, other than a rejection of
2081 all bids, proposals, or replies, the administrative law judge
2082 must conduct a de novo proceeding to determine whether the
2083 corporation’s proposed action is contrary to the corporation’s
2084 governing statutes, the corporation’s rules or policies, or the
2085 solicitation specifications. The standard of proof for the
2086 proceeding is whether the corporation’s action was clearly
2087 erroneous, contrary to competition, arbitrary, or capricious. In
2088 any bid-protest proceeding contesting an intended corporation
2089 action to reject all bids, proposals, or replies, the standard
2090 of review by the board is whether the corporation’s intended
2091 action is illegal, arbitrary, dishonest, or fraudulent.
2092 d. Failure to file a notice of protest or failure to file a
2093 formal written protest constitutes a waiver of proceedings.
2094 3. The board, acting as agency head or his or her designee,
2095 shall consider the recommended order of an administrative law
2096 judge in a public meeting and take final action on the protest.
2097 Any further legal remedy lies with the First District Court of
2098 Appeal.
2099 (o) If coverage in an account, or the Citizens account if
2100 established by the corporation, is deactivated pursuant to
2101 paragraph (p), coverage through the corporation shall be
2102 reactivated by order of the office only under one of the
2103 following circumstances:
2104 1. If the market assistance plan receives a minimum of 100
2105 applications for coverage within a 3-month period, or 200
2106 applications for coverage within a 1-year period or less for
2107 residential coverage, unless the market assistance plan provides
2108 a quotation from authorized admitted carriers at their approved
2109 filed rates for at least 90 percent of such applicants. Any
2110 market assistance plan application that is rejected because an
2111 individual risk is so hazardous as to be uninsurable using the
2112 criteria specified in subparagraph (c)8. may shall not be
2113 included in the minimum percentage calculation provided herein.
2114 In the event that there is a legal or administrative challenge
2115 to a determination by the office that the conditions of this
2116 subparagraph have been met for eligibility for coverage in the
2117 corporation, any eligible risk may obtain coverage during the
2118 pendency of such challenge.
2119 2. In response to a state of emergency declared by the
2120 Governor under s. 252.36, the office may activate coverage by
2121 order for the period of the emergency upon a finding by the
2122 office that the emergency significantly affects the availability
2123 of residential property insurance.
2124 (p)1. The corporation shall file with the office quarterly
2125 statements of financial condition, an annual statement of
2126 financial condition, and audited financial statements in the
2127 manner prescribed by law. In addition, the corporation shall
2128 report to the office monthly on the types, premium, exposure,
2129 and distribution by county of its policies in force, and shall
2130 submit other reports as the office requires to carry out its
2131 oversight of the corporation.
2132 2. The activities of the corporation shall be reviewed at
2133 least annually by the office to determine whether coverage shall
2134 be deactivated in an account, or in the Citizens account if
2135 established by the corporation, on the basis that the conditions
2136 giving rise to its activation no longer exist.
2137 (q)1. The corporation shall certify to the office its needs
2138 for annual assessments as to a particular calendar year, and for
2139 any interim assessments that it deems to be necessary to sustain
2140 operations as to a particular year pending the receipt of annual
2141 assessments. Upon verification, the office shall approve such
2142 certification, and the corporation shall levy such annual or
2143 interim assessments. Such assessments shall be prorated, if
2144 authority to levy exists, as provided in paragraph (b). The
2145 corporation shall take all reasonable and prudent steps
2146 necessary to collect the amount of assessments due from each
2147 assessable insurer, including, if prudent, filing suit to
2148 collect the assessments, and the office may provide such
2149 assistance to the corporation it deems appropriate. If the
2150 corporation is unable to collect an assessment from any
2151 assessable insurer, the uncollected assessments shall be levied
2152 as an additional assessment against the assessable insurers and
2153 any assessable insurer required to pay an additional assessment
2154 as a result of such failure to pay shall have a cause of action
2155 against such nonpaying assessable insurer. Assessments shall be
2156 included as an appropriate factor in the making of rates. The
2157 failure of a surplus lines agent to collect and remit any
2158 regular or emergency assessment levied by the corporation is
2159 considered to be a violation of s. 626.936 and subjects the
2160 surplus lines agent to the penalties provided in that section.
2161 2. The governing body of any unit of local government, any
2162 residents of which are insured by the corporation, may issue
2163 bonds as defined in s. 125.013 or s. 166.101 from time to time
2164 to fund an assistance program, in conjunction with the
2165 corporation, for the purpose of defraying deficits of the
2166 corporation. In order to avoid needless and indiscriminate
2167 proliferation, duplication, and fragmentation of such assistance
2168 programs, any unit of local government, any residents of which
2169 are insured by the corporation, may provide for the payment of
2170 losses, regardless of whether or not the losses occurred within
2171 or outside of the territorial jurisdiction of the local
2172 government. Revenue bonds under this subparagraph may not be
2173 issued until validated pursuant to chapter 75, unless a state of
2174 emergency is declared by executive order or proclamation of the
2175 Governor pursuant to s. 252.36 making such findings as are
2176 necessary to determine that it is in the best interests of, and
2177 necessary for, the protection of the public health, safety, and
2178 general welfare of residents of this state and declaring it an
2179 essential public purpose to permit certain municipalities or
2180 counties to issue such bonds as will permit relief to claimants
2181 and policyholders of the corporation. Any such unit of local
2182 government may enter into such contracts with the corporation
2183 and with any other entity created pursuant to this subsection as
2184 are necessary to carry out this paragraph. Any bonds issued
2185 under this subparagraph shall be payable from and secured by
2186 moneys received by the corporation from emergency assessments
2187 under sub-subparagraph (b)3.c. (b)3.e., and assigned and pledged
2188 to or on behalf of the unit of local government for the benefit
2189 of the holders of such bonds. The funds, credit, property, and
2190 taxing power of the state or of the unit of local government may
2191 shall not be pledged for the payment of such bonds.
2192 3.a. The corporation shall adopt one or more programs
2193 subject to approval by the office for the reduction of both new
2194 and renewal writings in the corporation. Beginning January 1,
2195 2008, any program the corporation adopts for the payment of
2196 bonuses to an insurer for each risk the insurer removes from the
2197 corporation shall comply with s. 627.3511(2) and may not exceed
2198 the amount referenced in s. 627.3511(2) for each risk removed.
2199 The corporation may consider any prudent and not unfairly
2200 discriminatory approach to reducing corporation writings, and
2201 may adopt a credit against assessment liability or other
2202 liability that provides an incentive for insurers to take risks
2203 out of the corporation and to keep risks out of the corporation
2204 by maintaining or increasing voluntary writings in counties or
2205 areas in which corporation risks are highly concentrated and a
2206 program to provide a formula under which an insurer voluntarily
2207 taking risks out of the corporation by maintaining or increasing
2208 voluntary writings will be relieved wholly or partially from
2209 assessments under sub-subparagraph (b)3.a. However, any “take
2210 out bonus” or payment to an insurer must be conditioned on the
2211 property being insured for at least 5 years by the insurer,
2212 unless canceled or nonrenewed by the policyholder. If the policy
2213 is canceled or nonrenewed by the policyholder before the end of
2214 the 5-year period, the amount of the take-out bonus must be
2215 prorated for the time period the policy was insured. When the
2216 corporation enters into a contractual agreement for a take-out
2217 plan, the producing agent of record of the corporation policy is
2218 entitled to retain any unearned commission on such policy, and
2219 the insurer shall either:
2220 (I) Pay to the producing agent of record of the policy, for
2221 the first year, an amount which is the greater of the insurer’s
2222 usual and customary commission for the type of policy written or
2223 a policy fee equal to the usual and customary commission of the
2224 corporation; or
2225 (II) Offer to allow the producing agent of record of the
2226 policy to continue servicing the policy for a period of not less
2227 than 1 year and offer to pay the agent the insurer’s usual and
2228 customary commission for the type of policy written. If the
2229 producing agent is unwilling or unable to accept appointment by
2230 the new insurer, the new insurer shall pay the agent in
2231 accordance with sub-sub-subparagraph (I).
2232 b. Any credit or exemption from regular assessments adopted
2233 under this subparagraph shall last no longer than the 3 years
2234 following the cancellation or expiration of the policy by the
2235 corporation. With the approval of the office, the board may
2236 extend such credits for an additional year if the insurer
2237 guarantees an additional year of renewability for all policies
2238 removed from the corporation, or for 2 additional years if the
2239 insurer guarantees 2 additional years of renewability for all
2240 policies so removed.
2241 c. There shall be no credit, limitation, exemption, or
2242 deferment from emergency assessments to be collected from
2243 policyholders pursuant to sub-subparagraph (b)3.c. sub
2244 subparagraph (b)3.e. or sub-subparagraph (b)5.c.
2245 4. The plan shall provide for the deferment, in whole or in
2246 part, of the assessment of an assessable insurer, other than an
2247 emergency assessment collected from policyholders pursuant to
2248 sub-subparagraph (b)3.e. or sub-subparagraph (b)5.c., if the
2249 office finds that payment of the assessment would endanger or
2250 impair the solvency of the insurer. In the event an assessment
2251 against an assessable insurer is deferred in whole or in part,
2252 the amount by which such assessment is deferred may be assessed
2253 against the other assessable insurers in a manner consistent
2254 with the basis for assessments set forth in paragraph (b).
2255 5. Effective July 1, 2007, in order to evaluate the costs
2256 and benefits of approved take-out plans, if the corporation pays
2257 a bonus or other payment to an insurer for an approved take-out
2258 plan, it shall maintain a record of the address or such other
2259 identifying information on the property or risk removed in order
2260 to track if and when the property or risk is later insured by
2261 the corporation.
2262 5.6. Any policy taken out, assumed, or removed from the
2263 corporation is, as of the effective date of the take-out,
2264 assumption, or removal, direct insurance issued by the insurer
2265 and not by the corporation, even if the corporation continues to
2266 service the policies. This subparagraph applies to policies of
2267 the corporation and not policies taken out, assumed, or removed
2268 from any other entity.
2269 6.7. For a policy taken out, assumed, or removed from the
2270 corporation, the insurer may, for a period of no more than 3
2271 years, continue to use any of the corporation’s policy forms or
2272 endorsements that apply to the policy taken out, removed, or
2273 assumed without obtaining approval from the office for use of
2274 such policy form or endorsement.
2275 (v)1. Effective July 1, 2002, policies of the Residential
2276 Property and Casualty Joint Underwriting Association become
2277 policies of the corporation. All obligations, rights, assets and
2278 liabilities of the association, including bonds, note and debt
2279 obligations, and the financing documents pertaining to them
2280 become those of the corporation as of July 1, 2002. The
2281 corporation is not required to issue endorsements or
2282 certificates of assumption to insureds during the remaining term
2283 of in-force transferred policies.
2284 2. Effective July 1, 2002, policies of the Florida
2285 Windstorm Underwriting Association are transferred to the
2286 corporation and become policies of the corporation. All
2287 obligations, rights, assets, and liabilities of the association,
2288 including bonds, note and debt obligations, and the financing
2289 documents pertaining to them are transferred to and assumed by
2290 the corporation on July 1, 2002. The corporation is not required
2291 to issue endorsements or certificates of assumption to insureds
2292 during the remaining term of in-force transferred policies.
2293 3. The Florida Windstorm Underwriting Association and the
2294 Residential Property and Casualty Joint Underwriting Association
2295 shall take all actions necessary to further evidence the
2296 transfers and provide the documents and instruments of further
2297 assurance as may reasonably be requested by the corporation for
2298 that purpose. The corporation shall execute assumptions and
2299 instruments as the trustees or other parties to the financing
2300 documents of the Florida Windstorm Underwriting Association or
2301 the Residential Property and Casualty Joint Underwriting
2302 Association may reasonably request to further evidence the
2303 transfers and assumptions, which transfers and assumptions,
2304 however, are effective on the date provided under this paragraph
2305 whether or not, and regardless of the date on which, the
2306 assumptions or instruments are executed by the corporation.
2307 Subject to the relevant financing documents pertaining to their
2308 outstanding bonds, notes, indebtedness, or other financing
2309 obligations, the moneys, investments, receivables, choses in
2310 action, and other intangibles of the Florida Windstorm
2311 Underwriting Association shall be credited to the coastal
2312 account of the corporation, and those of the personal lines
2313 residential coverage account and the commercial lines
2314 residential coverage account of the Residential Property and
2315 Casualty Joint Underwriting Association shall be credited to the
2316 personal lines account and the commercial lines account,
2317 respectively, of the corporation.
2318 4. Effective July 1, 2002, a new applicant for property
2319 insurance coverage who would otherwise have been eligible for
2320 coverage in the Florida Windstorm Underwriting Association is
2321 eligible for coverage from the corporation as provided in this
2322 subsection.
2323 5. The transfer of all policies, obligations, rights,
2324 assets, and liabilities from the Florida Windstorm Underwriting
2325 Association to the corporation and the renaming of the
2326 Residential Property and Casualty Joint Underwriting Association
2327 as the corporation does not affect the coverage with respect to
2328 covered policies as defined in s. 215.555(2)(c) provided to
2329 these entities by the Florida Hurricane Catastrophe Fund. The
2330 coverage provided by the fund to the Florida Windstorm
2331 Underwriting Association based on its exposures as of June 30,
2332 2002, and each June 30 thereafter, unless the corporation has
2333 established the Citizens account, shall be redesignated as
2334 coverage for the coastal account of the corporation.
2335 Notwithstanding any other provision of law, the coverage
2336 provided by the fund to the Residential Property and Casualty
2337 Joint Underwriting Association based on its exposures as of June
2338 30, 2002, and each June 30 thereafter, unless the corporation
2339 has established the Citizens account, shall be transferred to
2340 the personal lines account and the commercial lines account of
2341 the corporation. Notwithstanding any other provision of law, the
2342 coastal account, unless the corporation has established the
2343 Citizens account, shall be treated, for all Florida Hurricane
2344 Catastrophe Fund purposes, as if it were a separate
2345 participating insurer with its own exposures, reimbursement
2346 premium, and loss reimbursement. Likewise, the personal lines
2347 and commercial lines accounts, unless the corporation has
2348 established the Citizens account, shall be viewed together, for
2349 all fund purposes, as if the two accounts were one and represent
2350 a single, separate participating insurer with its own exposures,
2351 reimbursement premium, and loss reimbursement. The coverage
2352 provided by the fund to the corporation shall constitute and
2353 operate as a full transfer of coverage from the Florida
2354 Windstorm Underwriting Association and Residential Property and
2355 Casualty Joint Underwriting Association to the corporation.
2356 (w) Notwithstanding any other provision of law:
2357 1. The pledge or sale of, the lien upon, and the security
2358 interest in any rights, revenues, or other assets of the
2359 corporation created or purported to be created pursuant to any
2360 financing documents to secure any bonds or other indebtedness of
2361 the corporation shall be and remain valid and enforceable,
2362 notwithstanding the commencement of and during the continuation
2363 of, and after, any rehabilitation, insolvency, liquidation,
2364 bankruptcy, receivership, conservatorship, reorganization, or
2365 similar proceeding against the corporation under the laws of
2366 this state.
2367 2. The proceeding does not relieve the corporation of its
2368 obligation, or otherwise affect its ability to perform its
2369 obligation, to continue to collect, or levy and collect,
2370 assessments, policyholder surcharges or other surcharges under
2371 sub-subparagraph (b)3.j., or any other rights, revenues, or
2372 other assets of the corporation pledged pursuant to any
2373 financing documents.
2374 3. Each such pledge or sale of, lien upon, and security
2375 interest in, including the priority of such pledge, lien, or
2376 security interest, any such assessments, policyholder surcharges
2377 or other surcharges, or other rights, revenues, or other assets
2378 which are collected, or levied and collected, after the
2379 commencement of and during the pendency of, or after, any such
2380 proceeding shall continue unaffected by such proceeding. As used
2381 in this subsection, the term “financing documents” means any
2382 agreement or agreements, instrument or instruments, or other
2383 document or documents now existing or hereafter created
2384 evidencing any bonds or other indebtedness of the corporation or
2385 pursuant to which any such bonds or other indebtedness has been
2386 or may be issued and pursuant to which any rights, revenues, or
2387 other assets of the corporation are pledged or sold to secure
2388 the repayment of such bonds or indebtedness, together with the
2389 payment of interest on such bonds or such indebtedness, or the
2390 payment of any other obligation or financial product, as defined
2391 in the plan of operation of the corporation related to such
2392 bonds or indebtedness.
2393 4. Any such pledge or sale of assessments, revenues,
2394 contract rights, or other rights or assets of the corporation
2395 shall constitute a lien and security interest, or sale, as the
2396 case may be, that is immediately effective and attaches to such
2397 assessments, revenues, or contract rights or other rights or
2398 assets, whether or not imposed or collected at the time the
2399 pledge or sale is made. Any such pledge or sale is effective,
2400 valid, binding, and enforceable against the corporation or other
2401 entity making such pledge or sale, and valid and binding against
2402 and superior to any competing claims or obligations owed to any
2403 other person or entity, including policyholders in this state,
2404 asserting rights in any such assessments, revenues, or contract
2405 rights or other rights or assets to the extent set forth in and
2406 in accordance with the terms of the pledge or sale contained in
2407 the applicable financing documents, whether or not any such
2408 person or entity has notice of such pledge or sale and without
2409 the need for any physical delivery, recordation, filing, or
2410 other action.
2411 5. As long as the corporation has any bonds outstanding,
2412 the corporation may not file a voluntary petition under chapter
2413 9 of the federal Bankruptcy Code or such corresponding chapter
2414 or sections as may be in effect, from time to time, and a public
2415 officer or any organization, entity, or other person may not
2416 authorize the corporation to be or become a debtor under chapter
2417 9 of the federal Bankruptcy Code or such corresponding chapter
2418 or sections as may be in effect, from time to time, during any
2419 such period.
2420 6. If ordered by a court of competent jurisdiction, the
2421 corporation may assume policies or otherwise provide coverage
2422 for policyholders of an insurer placed in liquidation under
2423 chapter 631, under such forms, rates, terms, and conditions as
2424 the corporation deems appropriate, subject to approval by the
2425 office.
2426 (x)1. The following records of the corporation are
2427 confidential and exempt from the provisions of s. 119.07(1) and
2428 s. 24(a), Art. I of the State Constitution:
2429 a. Underwriting files, except that a policyholder or an
2430 applicant shall have access to his or her own underwriting
2431 files. Confidential and exempt underwriting file records may
2432 also be released to other governmental agencies upon written
2433 request and demonstration of need; such records held by the
2434 receiving agency remain confidential and exempt as provided
2435 herein.
2436 b. Claims files, until termination of all litigation and
2437 settlement of all claims arising out of the same incident,
2438 although portions of the claims files may remain exempt, as
2439 otherwise provided by law. Confidential and exempt claims file
2440 records may be released to other governmental agencies upon
2441 written request and demonstration of need; such records held by
2442 the receiving agency remain confidential and exempt as provided
2443 herein.
2444 c. Records obtained or generated by an internal auditor
2445 pursuant to a routine audit, until the audit is completed, or if
2446 the audit is conducted as part of an investigation, until the
2447 investigation is closed or ceases to be active. An investigation
2448 is considered “active” while the investigation is being
2449 conducted with a reasonable, good faith belief that it could
2450 lead to the filing of administrative, civil, or criminal
2451 proceedings.
2452 d. Matters reasonably encompassed in privileged attorney
2453 client communications.
2454 e. Proprietary information licensed to the corporation
2455 under contract and the contract provides for the confidentiality
2456 of such proprietary information.
2457 f. All information relating to the medical condition or
2458 medical status of a corporation employee which is not relevant
2459 to the employee’s capacity to perform his or her duties, except
2460 as otherwise provided in this paragraph. Information that is
2461 exempt shall include, but is not limited to, information
2462 relating to workers’ compensation, insurance benefits, and
2463 retirement or disability benefits.
2464 g. Upon an employee’s entrance into the employee assistance
2465 program, a program to assist any employee who has a behavioral
2466 or medical disorder, substance abuse problem, or emotional
2467 difficulty that affects the employee’s job performance, all
2468 records relative to that participation shall be confidential and
2469 exempt from the provisions of s. 119.07(1) and s. 24(a), Art. I
2470 of the State Constitution, except as otherwise provided in s.
2471 112.0455(11).
2472 h. Information relating to negotiations for financing,
2473 reinsurance, depopulation, or contractual services, until the
2474 conclusion of the negotiations.
2475 i. Minutes of closed meetings regarding underwriting files,
2476 and minutes of closed meetings regarding an open claims file
2477 until termination of all litigation and settlement of all claims
2478 with regard to that claim, except that information otherwise
2479 confidential or exempt by law shall be redacted.
2480 2. If an authorized insurer is considering underwriting a
2481 risk insured by the corporation, relevant underwriting files and
2482 confidential claims files may be released to the insurer
2483 provided the insurer agrees in writing, notarized and under
2484 oath, to maintain the confidentiality of such files. If a file
2485 is transferred to an insurer, that file is no longer a public
2486 record because it is not held by an agency subject to the
2487 provisions of the public records law. Underwriting files and
2488 confidential claims files may also be released to staff and the
2489 board of governors of the market assistance plan established
2490 pursuant to s. 627.3515, who must retain the confidentiality of
2491 such files, except such files may be released to authorized
2492 insurers that are considering assuming the risks to which the
2493 files apply, provided the insurer agrees in writing, notarized
2494 and under oath, to maintain the confidentiality of such files.
2495 Finally, the corporation or the board or staff of the market
2496 assistance plan may make the following information obtained from
2497 underwriting files and confidential claims files available to an
2498 entity that has obtained a permit to become an authorized
2499 insurer, a reinsurer that may provide reinsurance under s.
2500 624.610, a licensed reinsurance broker, a licensed rating
2501 organization, a modeling company, a licensed surplus lines
2502 agent, or a licensed general lines insurance agent: name,
2503 address, and telephone number of the residential property owner
2504 or insured; location of the risk; rating information; loss
2505 history; and policy type. The receiving person must retain the
2506 confidentiality of the information received and may use the
2507 information only for the purposes of developing a take-out plan
2508 or a rating plan to be submitted to the office for approval or
2509 otherwise analyzing the underwriting of a risk or risks insured
2510 by the corporation on behalf of the private insurance market. A
2511 licensed surplus lines agent or licensed general lines insurance
2512 agent may not use such information for the direct solicitation
2513 of policyholders.
2514 3. A policyholder who has filed suit against the
2515 corporation has the right to discover the contents of his or her
2516 own claims file to the same extent that discovery of such
2517 contents would be available from a private insurer in litigation
2518 as provided by the Florida Rules of Civil Procedure, the Florida
2519 Evidence Code, and other applicable law. Pursuant to subpoena, a
2520 third party has the right to discover the contents of an
2521 insured’s or applicant’s underwriting or claims file to the same
2522 extent that discovery of such contents would be available from a
2523 private insurer by subpoena as provided by the Florida Rules of
2524 Civil Procedure, the Florida Evidence Code, and other applicable
2525 law, and subject to any confidentiality protections requested by
2526 the corporation and agreed to by the seeking party or ordered by
2527 the court. The corporation may release confidential underwriting
2528 and claims file contents and information as it deems necessary
2529 and appropriate to underwrite or service insurance policies and
2530 claims, subject to any confidentiality protections deemed
2531 necessary and appropriate by the corporation.
2532 4. Portions of meetings of the corporation are exempt from
2533 the provisions of s. 286.011 and s. 24(b), Art. I of the State
2534 Constitution wherein confidential underwriting files or
2535 confidential open claims files are discussed. All portions of
2536 corporation meetings which are closed to the public shall be
2537 recorded by a court reporter. The court reporter shall record
2538 the times of commencement and termination of the meeting, all
2539 discussion and proceedings, the names of all persons present at
2540 any time, and the names of all persons speaking. No portion of
2541 any closed meeting shall be off the record. Subject to the
2542 provisions hereof and s. 119.07(1)(d)-(f), the court reporter’s
2543 notes of any closed meeting shall be retained by the corporation
2544 for a minimum of 5 years. A copy of the transcript, less any
2545 exempt matters, of any closed meeting wherein claims are
2546 discussed shall become public as to individual claims after
2547 settlement of the claim.
2548 (z) In enacting the provisions of this section, the
2549 Legislature recognizes that both the Florida Windstorm
2550 Underwriting Association and the Residential Property and
2551 Casualty Joint Underwriting Association have entered into
2552 financing arrangements that obligate each entity to service its
2553 debts and maintain the capacity to repay funds secured under
2554 these financing arrangements. It is the intent of the
2555 Legislature that nothing in this section be construed to
2556 compromise, diminish, or interfere with the rights of creditors
2557 under such financing arrangements. It is further the intent of
2558 the Legislature to preserve the obligations of the Florida
2559 Windstorm Underwriting Association and Residential Property and
2560 Casualty Joint Underwriting Association with regard to
2561 outstanding financing arrangements, with such obligations
2562 passing entirely and unchanged to the corporation and,
2563 specifically, to the Citizens applicable account of the
2564 corporation. So long as any bonds, notes, indebtedness, or other
2565 financing obligations of the Florida Windstorm Underwriting
2566 Association or the Residential Property and Casualty Joint
2567 Underwriting Association are outstanding, under the terms of the
2568 financing documents pertaining to them, the governing board of
2569 the corporation shall have and shall exercise the authority to
2570 levy, charge, collect, and receive all premiums, assessments,
2571 surcharges, charges, revenues, and receipts that the
2572 associations had authority to levy, charge, collect, or receive
2573 under the provisions of subsection (2) and this subsection,
2574 respectively, as they existed on January 1, 2002, to provide
2575 moneys, without exercise of the authority provided by this
2576 subsection, in at least the amounts, and by the times, as would
2577 be provided under those former provisions of subsection (2) or
2578 this subsection, respectively, so that the value, amount, and
2579 collectability of any assets, revenues, or revenue source
2580 pledged or committed to, or any lien thereon securing such
2581 outstanding bonds, notes, indebtedness, or other financing
2582 obligations will not be diminished, impaired, or adversely
2583 affected by the amendments made by this act and to permit
2584 compliance with all provisions of financing documents pertaining
2585 to such bonds, notes, indebtedness, or other financing
2586 obligations, or the security or credit enhancement for them, and
2587 any reference in this subsection to bonds, notes, indebtedness,
2588 financing obligations, or similar obligations, of the
2589 corporation shall include like instruments or contracts of the
2590 Florida Windstorm Underwriting Association and the Residential
2591 Property and Casualty Joint Underwriting Association to the
2592 extent not inconsistent with the provisions of the financing
2593 documents pertaining to them.
2594 (ii) The corporation shall revise the programs adopted
2595 pursuant to sub-subparagraph (q)3.a. for personal lines
2596 residential policies to maximize policyholder options and
2597 encourage increased participation by insurers and agents. After
2598 January 1, 2017, a policy may not be taken out of the
2599 corporation unless the provisions of this paragraph are met.
2600 1. The corporation must publish a periodic schedule of
2601 cycles during which an insurer may identify, and notify the
2602 corporation of, policies that the insurer is requesting to take
2603 out. A request must include a description of the coverage
2604 offered and an estimated premium and must be submitted to the
2605 corporation in a form and manner prescribed by the corporation.
2606 2. The corporation must maintain and make available to the
2607 agent of record a consolidated list of all insurers requesting
2608 to take out a policy. The list must include a description of the
2609 coverage offered and the estimated premium for each take-out
2610 request.
2611 3. If a policyholder receives a take-out offer from an
2612 authorized insurer, the risk is no longer eligible for coverage
2613 with the corporation unless the premium for coverage from the
2614 authorized insurer is more than 20 percent greater than the
2615 renewal premium for comparable coverage from the corporation
2616 pursuant to sub-subparagraph (c)5.d. (c)5.c. This subparagraph
2617 applies to take-out offers that are part of an application to
2618 participate in depopulation submitted to the office on or after
2619 January 1, 2023. This subparagraph only applies to a policy that
2620 covers a primary residence.
2621 4. The corporation must provide written notice to the
2622 policyholder and the agent of record regarding all insurers
2623 requesting to take out the policy. The notice must be in a
2624 format prescribed by the corporation and include, for each take
2625 out offer:
2626 a. The amount of the estimated premium;
2627 b. A description of the coverage; and
2628 c. A comparison of the estimated premium and coverage
2629 offered by the insurer to the estimated premium and coverage
2630 provided by the corporation.
2631 (nn) The corporation may share its claims data with the
2632 National Insurance Crime Bureau, provided that the National
2633 Insurance Crime Bureau agrees to maintain the confidentiality of
2634 such documents as otherwise provided for in paragraph (x).
2635 (7) TRADEMARKS, COPYRIGHTS, OR PATENTS.—Notwithstanding any
2636 other law, the corporation is authorized, in its own name, to:
2637 (a) Perform all things necessary to secure letters of
2638 patent, copyrights, or trademarks on any work products and
2639 enforce its rights therein.
2640 (b) License, lease, assign, or otherwise give written
2641 consent to any person, firm, or corporation for the manufacture
2642 or use thereof, on a royalty basis or for such other
2643 consideration as the corporation deems proper.
2644 (c) Take any action necessary, including legal action, to
2645 protect trademarks, copyrights, or patents against improper or
2646 unlawful use or infringement.
2647 (d) Enforce the collection of any sums due the corporation
2648 for the manufacture or use thereof by any other party.
2649 (e) Sell any of its trademarks, copyrights, or patents and
2650 execute all instruments necessary to consummate any such sale.
2651 (f) Do all other acts necessary and proper for the
2652 execution of powers and duties herein conferred upon the
2653 corporation in order to administer this subsection.
2654 Section 3. Subsection (3) and paragraphs (d), (e), and (f)
2655 of subsection (6) of section 627.3511, Florida Statutes, are
2656 amended to read:
2657 627.3511 Depopulation of Citizens Property Insurance
2658 Corporation.—
2659 (3) EXEMPTION FROM DEFICIT ASSESSMENTS.—
2660 (a) The calculation of an insurer’s assessment liability
2661 under s. 627.351(6)(b)3.a. shall, for an insurer that in any
2662 calendar year removes 50,000 or more risks from the Citizens
2663 Property Insurance Corporation, either by issuance of a policy
2664 upon expiration or cancellation of the corporation policy or by
2665 assumption of the corporation’s obligations with respect to in
2666 force policies, exclude such removed policies for the succeeding
2667 3 years, as follows:
2668 1. In the first year following removal of the risks, the
2669 risks are excluded from the calculation to the extent of 100
2670 percent.
2671 2. In the second year following removal of the risks, the
2672 risks are excluded from the calculation to the extent of 75
2673 percent.
2674 3. In the third year following removal of the risks, the
2675 risks are excluded from the calculation to the extent of 50
2676 percent.
2677
2678 If the removal of risks is accomplished through assumption of
2679 obligations with respect to in-force policies, the corporation
2680 shall pay to the assuming insurer all unearned premium with
2681 respect to such policies less any policy acquisition costs
2682 agreed to by the corporation and assuming insurer. The term
2683 “policy acquisition costs” is defined as costs of issuance of
2684 the policy by the corporation which includes agent commissions,
2685 servicing company fees, and premium tax. This paragraph does not
2686 apply to an insurer that, at any time within 5 years before
2687 removing the risks, had a market share in excess of 0.1 percent
2688 of the statewide aggregate gross direct written premium for any
2689 line of property insurance, or to an affiliate of such an
2690 insurer. This paragraph does not apply unless either at least 40
2691 percent of the risks removed from the corporation are located in
2692 Miami-Dade, Broward, and Palm Beach Counties, or at least 30
2693 percent of the risks removed from the corporation are located in
2694 such counties and an additional 50 percent of the risks removed
2695 from the corporation are located in other coastal counties.
2696 (b) An insurer that first wrote personal lines residential
2697 property coverage in this state on or after July 1, 1994, is
2698 exempt from regular deficit assessments imposed pursuant to s.
2699 627.351(6)(b)3.a., but not emergency assessments collected from
2700 policyholders pursuant to s. 627.351(6)(b)3.e., of the Citizens
2701 Property Insurance Corporation until the earlier of the
2702 following:
2703 1. The end of the calendar year in which it first wrote 0.5
2704 percent or more of the statewide aggregate direct written
2705 premium for any line of residential property coverage; or
2706 2. December 31, 1997, or December 31 of the third year in
2707 which it wrote such coverage in this state, whichever is later.
2708 (c) Other than an insurer that is exempt under paragraph
2709 (b), an insurer that in any calendar year increases its total
2710 structure exposure subject to wind coverage by 25 percent or
2711 more over its exposure for the preceding calendar year is, with
2712 respect to that year, exempt from deficit assessments imposed
2713 pursuant to s. 627.351(6)(b)3.a., but not emergency assessments
2714 collected from policyholders pursuant to s. 627.351(6)(b)3.e.,
2715 of the Citizens Property Insurance Corporation attributable to
2716 such increase in exposure.
2717 (d) Any exemption or credit from regular assessments
2718 authorized by this section shall last no longer than 3 years
2719 following the cancellation or expiration of the policy by the
2720 corporation. With the approval of the office, the board may
2721 extend such credits for an additional year if the insurer
2722 guarantees an additional year of renewability for all policies
2723 removed from the corporation, or for 2 additional years if the
2724 insurer guarantees 2 additional years of renewability for all
2725 policies so removed.
2726 (6) COMMERCIAL RESIDENTIAL TAKE-OUT PLANS.—
2727 (d) The calculation of an insurer’s regular assessment
2728 liability under s. 627.351(6)(b)3.a., but not emergency
2729 assessments collected from policyholders pursuant to s.
2730 627.351(6)(b)3.e., shall, with respect to commercial residential
2731 policies removed from the corporation under an approved take-out
2732 plan, exclude such removed policies for the succeeding 3 years,
2733 as follows:
2734 1. In the first year following removal of the policies, the
2735 policies are excluded from the calculation to the extent of 100
2736 percent.
2737 2. In the second year following removal of the policies,
2738 the policies are excluded from the calculation to the extent of
2739 75 percent.
2740 3. In the third year following removal of the policies, the
2741 policies are excluded from the calculation to the extent of 50
2742 percent.
2743 (e) An insurer that first wrote commercial residential
2744 property coverage in this state on or after June 1, 1996, is
2745 exempt from regular assessments under s. 627.351(6)(b)3.a., but
2746 not emergency assessments collected from policyholders pursuant
2747 to s. 627.351(6)(b)3.e., with respect to commercial residential
2748 policies until the earlier of:
2749 1. The end of the calendar year in which such insurer first
2750 wrote 0.5 percent or more of the statewide aggregate direct
2751 written premium for commercial residential property coverage; or
2752 2. December 31 of the third year in which such insurer
2753 wrote commercial residential property coverage in this state.
2754 (f) An insurer that is not otherwise exempt from regular
2755 assessments under s. 627.351(6)(b)3.a. with respect to
2756 commercial residential policies is, for any calendar year in
2757 which such insurer increased its total commercial residential
2758 hurricane exposure by 25 percent or more over its exposure for
2759 the preceding calendar year, exempt from regular assessments
2760 under s. 627.351(6)(b)3.a., but not emergency assessments
2761 collected from policyholders pursuant to s. 627.351(6)(b)3.e.,
2762 attributable to such increased exposure.
2763 Section 4. Subsections (5), (6), and (7) of section
2764 627.3518, Florida Statutes, are amended to read:
2765 627.3518 Citizens Property Insurance Corporation
2766 policyholder eligibility clearinghouse program.—The purpose of
2767 this section is to provide a framework for the corporation to
2768 implement a clearinghouse program by January 1, 2014.
2769 (5) Notwithstanding s. 627.3517, any applicant for new
2770 coverage from the corporation is not eligible for coverage from
2771 the corporation if provided an offer of coverage from an
2772 authorized insurer through the program at a premium that is at
2773 or below the eligibility threshold for applicants for new
2774 coverage of a primary residence established in s.
2775 627.351(6)(c)5.a., or for applicants for new coverage of a risk
2776 that is not a primary residence established in s.
2777 627.351(6)(c)5.b. Whenever an offer of coverage for a personal
2778 lines risk is received for a policyholder of the corporation at
2779 renewal from an authorized insurer through the program which is
2780 at or below the eligibility threshold for primary residences of
2781 policyholders of the corporation established in s.
2782 627.351(6)(c)5.a., or the eligibility threshold for risks that
2783 are not primary residences of policyholders of the corporation
2784 established in s. 627.351(6)(c)5.b., the risk is not eligible
2785 for coverage with the corporation. In the event an offer of
2786 coverage for a new applicant is received from an authorized
2787 insurer through the program, and the premium offered exceeds the
2788 eligibility threshold for applicants for new coverage of a
2789 primary residence established in s. 627.351(6)(c)5.a., or the
2790 eligibility threshold for applicants for new coverage on a risk
2791 that is not a primary residence established in s.
2792 627.351(6)(c)5.b., the applicant or insured may elect to accept
2793 such coverage, or may elect to accept or continue coverage with
2794 the corporation. In the event an offer of coverage for a
2795 personal lines risk is received from an authorized insurer at
2796 renewal through the program, and the premium offered exceeds the
2797 eligibility threshold for primary residences of policyholders of
2798 the corporation established in s. 627.351(6)(c)5.a., or exceeds
2799 the eligibility threshold for risks that are not primary
2800 residences of policyholders of the corporation established in s.
2801 627.351(6)(c)5.b., the insured may elect to accept such
2802 coverage, or may elect to accept or continue coverage with the
2803 corporation. Section 627.351(6)(c)5.a.(I) and b.(I) does not
2804 apply to an offer of coverage from an authorized insurer
2805 obtained through the program. As used in this subsection, the
2806 term “primary residence” has the same meaning as in s.
2807 627.351(6)(c)2.a.
2808 (6) Independent insurance agents submitting new
2809 applications for coverage or that are the agent of record on a
2810 renewal policy submitted to the program:
2811 (a) Are granted and must maintain ownership and the
2812 exclusive use of expirations, records, or other written or
2813 electronic information directly related to such applications or
2814 renewals written through the corporation or through an insurer
2815 participating in the program, notwithstanding s.
2816 627.351(6)(c)5.a.(I)(B) and (II)(B) or s.
2817 627.351(6)(c)5.b.(I)(B) and (II)(B). Such ownership is granted
2818 for as long as the insured remains with the agency or until sold
2819 or surrendered in writing by the agent. Contracts with the
2820 corporation or required by the corporation must not amend,
2821 modify, interfere with, or limit such rights of ownership. Such
2822 expirations, records, or other written or electronic information
2823 may be used to review an application, issue a policy, or for any
2824 other purpose necessary for placing such business through the
2825 program.
2826 (b) May not be required to be appointed by any insurer
2827 participating in the program for policies written solely through
2828 the program, notwithstanding the provisions of s. 626.112.
2829 (c) May accept an appointment from any insurer
2830 participating in the program.
2831 (d) May enter into either a standard or limited agency
2832 agreement with the insurer, at the insurer’s option.
2833
2834 Applicants ineligible for coverage in accordance with subsection
2835 (5) remain ineligible if their independent agent is unwilling or
2836 unable to enter into a standard or limited agency agreement with
2837 an insurer participating in the program.
2838 (7) Exclusive agents submitting new applications for
2839 coverage or that are the agent of record on a renewal policy
2840 submitted to the program:
2841 (a) Must maintain ownership and the exclusive use of
2842 expirations, records, or other written or electronic information
2843 directly related to such applications or renewals written
2844 through the corporation or through an insurer participating in
2845 the program, notwithstanding s. 627.351(6)(c)5.a.(I)(B) and
2846 (II)(B) or s. 627.351(6)(c)5.b.(I)(B) and (II)(B). Contracts
2847 with the corporation or required by the corporation must not
2848 amend, modify, interfere with, or limit such rights of
2849 ownership. Such expirations, records, or other written or
2850 electronic information may be used to review an application,
2851 issue a policy, or for any other purpose necessary for placing
2852 such business through the program.
2853 (b) May not be required to be appointed by any insurer
2854 participating in the program for policies written solely through
2855 the program, notwithstanding the provisions of s. 626.112.
2856 (c) Must only facilitate the placement of an offer of
2857 coverage from an insurer whose limited servicing agreement is
2858 approved by that exclusive agent’s exclusive insurer.
2859 (d) May enter into a limited servicing agreement with the
2860 insurer making an offer of coverage, and only after the
2861 exclusive agent’s insurer has approved the limited servicing
2862 agreement terms. The exclusive agent’s insurer must approve a
2863 limited service agreement for the program for any insurer for
2864 which it has approved a service agreement for other purposes.
2865
2866 Applicants ineligible for coverage in accordance with subsection
2867 (5) remain ineligible if their exclusive agent is unwilling or
2868 unable to enter into a standard or limited agency agreement with
2869 an insurer making an offer of coverage to that applicant.
2870 Section 5. Except as otherwise expressly provided in this
2871 act and except for this section, which shall take effect upon
2872 becoming a law, this act shall take effect July 1, 2024.
2873
2874 ================= T I T L E A M E N D M E N T ================
2875 And the title is amended as follows:
2876 Delete everything before the enacting clause
2877 and insert:
2878 A bill to be entitled
2879 An act relating to Citizens Property Insurance
2880 Corporation; amending s. 627.351, F.S.; revising a
2881 requirement for certain flood insurance; revising
2882 circumstances under which certain insurers’
2883 associations must levy market equalization surcharges
2884 on policyholders; deleting obsolete language;
2885 providing that certain accounts for Citizens Property
2886 Insurance Corporation revenues, assets, liabilities,
2887 losses, and expenses are now maintained as the
2888 Citizens account; revising the requirements for
2889 certain coverages by the corporation; requiring the
2890 inclusion of quota share primary insurance in certain
2891 policies; deleting provisions relating to legislative
2892 goals; conforming provisions to changes made by the
2893 act; revising provisions relating to deficits in
2894 certain accounts; revising the definition of the term
2895 “assessments”; deleting provisions relating to
2896 surcharges and regular assessments upon determination
2897 of projected deficits; deleting provisions relating to
2898 funds available to the corporation as sources of
2899 revenue and bonds; deleting definitions; deleting
2900 provisions relating to the duties of the Florida
2901 Surplus Lines Service Office; deleting provisions
2902 relating to disposition of excess amounts of
2903 assessments and surcharges; defining the terms
2904 “approved surplus lines insurer” and “primary
2905 residence”; providing applicability of certain
2906 provisions relating to personal lines residential
2907 risks coverage by the corporation; providing that
2908 certain personal lines residential risks are not
2909 eligible for any policy issued by the corporation;
2910 providing an exception; providing that certain
2911 personal lines residential risks are not eligible for
2912 coverage with the corporation under certain
2913 circumstances; providing an exception; providing that
2914 certain risks are eligible for certain standard
2915 policies; providing that certain risks are eligible
2916 for certain basic policies; requiring the
2917 determination of the type of policy to be provided on
2918 the basis of certain standards and practices;
2919 providing that certain policyholders do not remain
2920 eligible for coverage from the corporation; requiring
2921 the insurer to pay the producing agent of record a
2922 certain amount or make certain offers under certain
2923 circumstances; providing that the producing agent of
2924 record is entitled to retain certain commission on the
2925 policy; requiring the insurer to pay the producing
2926 agent of record a certain amount or make certain
2927 offers under certain circumstances; revising the
2928 corporation’s plan of operation; revising the required
2929 statements from applicants for coverage; revising the
2930 duties of the executive director of the corporation;
2931 authorizing the executive director to assign and
2932 appoint designees; deleting an applicability provision
2933 relating to bond requirements; deleting provisions
2934 relating to certain insurer assessment deferments;
2935 deleting provisions relating to the intangibles of and
2936 coverage by the Florida Windstorm Underwriting
2937 Association and the corporation coastal account;
2938 authorizing the corporation and certain persons to
2939 make specified information obtained from underwriting
2940 files and confidential claims files available to
2941 licensed surplus lines agents; prohibiting such agents
2942 from using such information for specified purposes;
2943 providing applicability of provisions relating to
2944 take-out offers that are part of applications to
2945 participate in depopulation; authorizing the
2946 corporation to share its claims data with a specified
2947 entity; authorizing the corporation to take certain
2948 actions relating to trademarks, copyrights, or
2949 patents; amending s. 627.3511, F.S.; conforming
2950 provisions to changes made by the act; conforming
2951 cross-references; amending s. 627.3518, F.S.; revising
2952 eligibility requirements for policyholders at renewal
2953 and for applicants for new coverage; defining the term
2954 “primary residence”; providing effective dates.