Florida Senate - 2024                          SENATOR AMENDMENT
       Bill No. CS/CS/HB 1503, 1st Eng.
       
       
       
       
       
       
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                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                Floor: 1/RE/2R         .                                
             03/06/2024 04:30 PM       .                                
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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
 1936         INSURANCE CORPORATION, I UNDERSTAND THAT IF THE
 1937         CORPORATION SUSTAINS A DEFICIT AS A RESULT OF
 1938         HURRICANE LOSSES OR FOR ANY OTHER REASON, MY POLICY
 1939         COULD BE SUBJECT TO SURCHARGES AND ASSESSMENTS, WHICH
 1940         WILL BE DUE AND PAYABLE UPON RENEWAL, CANCELLATION, OR
 1941         TERMINATION OF THE POLICY, AND THAT THE SURCHARGES AND
 1942         ASSESSMENTS COULD BE AS HIGH AS 25 45 PERCENT OF MY
 1943         PREMIUM, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
 1944         FLORIDA LEGISLATURE.
 1945         2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS
 1946         POLICYHOLDER SURCHARGE, WHICH COULD BE AS HIGH AS 15
 1947         45 PERCENT OF MY PREMIUM, BY OBTAINING COVERAGE FROM A
 1948         PRIVATE MARKET INSURER AND THAT TO BE ELIGIBLE FOR
 1949         COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN
 1950         PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR
 1951         RENEWING COVERAGE WITH CITIZENS. I UNDERSTAND THAT
 1952         PRIVATE MARKET INSURANCE RATES ARE REGULATED AND
 1953         APPROVED BY THE STATE.
 1954         3. I UNDERSTAND THAT I MAY BE SUBJECT TO
 1955         EMERGENCY ASSESSMENTS TO THE SAME EXTENT AS
 1956         POLICYHOLDERS OF OTHER INSURANCE COMPANIES, OR A
 1957         DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA
 1958         LEGISLATURE.
 1959         4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY
 1960         INSURANCE CORPORATION IS NOT SUPPORTED BY THE FULL
 1961         FAITH AND CREDIT OF THE STATE OF FLORIDA.
 1962  
 1963         b.The corporation must require, if it has established the
 1964  Citizens account pursuant to sub-subparagraph (b)2.b., that the
 1965  agent obtain from an applicant for coverage from the corporation
 1966  the following acknowledgment signed by the applicant, which
 1967  includes, at a minimum, the following statement:
 1968  
 1969                ACKNOWLEDGMENT OF POTENTIAL SURCHARGE              
 1970                      AND ASSESSMENT LIABILITY:                    
 1971  
 1972         1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
 1973  CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
 1974  DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
 1975  MY POLICY COULD BE SUBJECT TO SURCHARGES AND ASSESSMENTS, WHICH
 1976  WILL BE DUE AND PAYABLE UPON RENEWAL, CANCELLATION, OR
 1977  TERMINATION OF THE POLICY, AND THAT THE SURCHARGES AND
 1978  ASSESSMENTS COULD BE AS HIGH AS 25 PERCENT OF MY PREMIUM, OR A
 1979  DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA LEGISLATURE.
 1980         2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
 1981  SURCHARGE, WHICH COULD BE AS HIGH AS 15 PERCENT OF MY PREMIUM,
 1982  BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND THAT TO
 1983  BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN
 1984  PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR RENEWING COVERAGE
 1985  WITH CITIZENS. I UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES
 1986  ARE REGULATED AND APPROVED BY THE STATE.
 1987         3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
 1988  ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
 1989  INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
 1990  FLORIDA LEGISLATURE.
 1991         4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
 1992  CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
 1993  STATE OF FLORIDA.
 1994  
 1995         b.c. The corporation shall maintain, in electronic format
 1996  or otherwise, a copy of the applicant’s signed acknowledgment
 1997  and provide a copy of the statement to the policyholder as part
 1998  of the first renewal after the effective date of sub
 1999  subparagraph a. or sub-subparagraph b., as applicable.
 2000         c.d. The signed acknowledgment form creates a conclusive
 2001  presumption that the policyholder understood and accepted his or
 2002  her potential surcharge and assessment liability as a
 2003  policyholder of the corporation.
 2004         21.Must provide that the income of the corporation may not
 2005  inure to the benefit of any private person.
 2006         (e) The corporation is subject to s. 287.057 for the
 2007  purchase of commodities and contractual services except as
 2008  otherwise provided in this paragraph. Services provided by
 2009  tradepersons or technical experts to assist a licensed adjuster
 2010  in the evaluation of individual claims are not subject to the
 2011  procurement requirements of this section. Additionally, the
 2012  procurement of financial services providers and underwriters
 2013  must be made pursuant to s. 627.3513. Contracts for goods or
 2014  services valued at or more than $100,000 are subject to approval
 2015  by the board.
 2016         1. The corporation is an agency for purposes of s. 287.057,
 2017  except that, for purposes of s. 287.057(24), the corporation is
 2018  an eligible user.
 2019         a. The authority of the Department of Management Services
 2020  and the Chief Financial Officer under s. 287.057 extends to the
 2021  corporation as if the corporation were an agency.
 2022         b. The executive director of the corporation is the agency
 2023  head under s. 287.057, except for resolution of bid protests for
 2024  which the board would serve as the agency head. The executive
 2025  director of the corporation may assign or appoint a designee to
 2026  act on his or her behalf.
 2027         2. The corporation must provide notice of a decision or
 2028  intended decision concerning a solicitation, contract award, or
 2029  exceptional purchase by electronic posting. Such notice must
 2030  contain the following statement: “Failure to file a protest
 2031  within the time prescribed in this section constitutes a waiver
 2032  of proceedings.”
 2033         a. A person adversely affected by the corporation’s
 2034  decision or intended decision to award a contract pursuant to s.
 2035  287.057(1) or (3)(c) who elects to challenge the decision must
 2036  file a written notice of protest with the executive director of
 2037  the corporation within 72 hours after the corporation posts a
 2038  notice of its decision or intended decision. For a protest of
 2039  the terms, conditions, and specifications contained in a
 2040  solicitation, including provisions governing the methods for
 2041  ranking bids, proposals, replies, awarding contracts, reserving
 2042  rights of further negotiation, or modifying or amending any
 2043  contract, the notice of protest must be filed in writing within
 2044  72 hours after posting the solicitation. Saturdays, Sundays, and
 2045  state holidays are excluded in the computation of the 72-hour
 2046  time period.
 2047         b. A formal written protest must be filed within 10 days
 2048  after the date the notice of protest is filed. The formal
 2049  written protest must state with particularity the facts and law
 2050  upon which the protest is based. Upon receipt of a formal
 2051  written protest that has been timely filed, the corporation must
 2052  stop the solicitation or contract award process until the
 2053  subject of the protest is resolved by final board action unless
 2054  the executive director sets forth in writing particular facts
 2055  and circumstances that require the continuance of the
 2056  solicitation or contract award process without delay in order to
 2057  avoid an immediate and serious danger to the public health,
 2058  safety, or welfare.
 2059         (I) The corporation must provide an opportunity to resolve
 2060  the protest by mutual agreement between the parties within 7
 2061  business days after receipt of the formal written protest.
 2062         (II) If the subject of a protest is not resolved by mutual
 2063  agreement within 7 business days, the corporation’s board must
 2064  transmit the protest to the Division of Administrative Hearings
 2065  and contract with the division to conduct a hearing to determine
 2066  the merits of the protest and to issue a recommended order. The
 2067  contract must provide for the corporation to reimburse the
 2068  division for any costs incurred by the division for court
 2069  reporters, transcript preparation, travel, facility rental, and
 2070  other customary hearing costs in the manner set forth in s.
 2071  120.65(9). The division has jurisdiction to determine the facts
 2072  and law concerning the protest and to issue a recommended order.
 2073  The division’s rules and procedures apply to these proceedings;
 2074  the division’s applicable bond requirements do not apply. The
 2075  protest must be heard by the division at a publicly noticed
 2076  meeting in accordance with procedures established by the
 2077  division.
 2078         c. In a protest of an invitation-to-bid or request-for
 2079  proposals procurement, submissions made after the bid or
 2080  proposal opening which amend or supplement the bid or proposal
 2081  may not be considered. In protesting an invitation-to-negotiate
 2082  procurement, submissions made after the corporation announces
 2083  its intent to award a contract, reject all replies, or withdraw
 2084  the solicitation that amends or supplements the reply may not be
 2085  considered. Unless otherwise provided by law, the burden of
 2086  proof rests with the party protesting the corporation’s action.
 2087  In a competitive-procurement protest, other than a rejection of
 2088  all bids, proposals, or replies, the administrative law judge
 2089  must conduct a de novo proceeding to determine whether the
 2090  corporation’s proposed action is contrary to the corporation’s
 2091  governing statutes, the corporation’s rules or policies, or the
 2092  solicitation specifications. The standard of proof for the
 2093  proceeding is whether the corporation’s action was clearly
 2094  erroneous, contrary to competition, arbitrary, or capricious. In
 2095  any bid-protest proceeding contesting an intended corporation
 2096  action to reject all bids, proposals, or replies, the standard
 2097  of review by the board is whether the corporation’s intended
 2098  action is illegal, arbitrary, dishonest, or fraudulent.
 2099         d. Failure to file a notice of protest or failure to file a
 2100  formal written protest constitutes a waiver of proceedings.
 2101         3. The board, acting as agency head or his or her designee,
 2102  shall consider the recommended order of an administrative law
 2103  judge in a public meeting and take final action on the protest.
 2104  Any further legal remedy lies with the First District Court of
 2105  Appeal.
 2106         (o) If coverage in an account, or the Citizens account if
 2107  established by the corporation, is deactivated pursuant to
 2108  paragraph (p), coverage through the corporation shall be
 2109  reactivated by order of the office only under one of the
 2110  following circumstances:
 2111         1. If the market assistance plan receives a minimum of 100
 2112  applications for coverage within a 3-month period, or 200
 2113  applications for coverage within a 1-year period or less for
 2114  residential coverage, unless the market assistance plan provides
 2115  a quotation from authorized admitted carriers at their approved
 2116  filed rates for at least 90 percent of such applicants. Any
 2117  market assistance plan application that is rejected because an
 2118  individual risk is so hazardous as to be uninsurable using the
 2119  criteria specified in subparagraph (c)8. may shall not be
 2120  included in the minimum percentage calculation provided herein.
 2121  In the event that there is a legal or administrative challenge
 2122  to a determination by the office that the conditions of this
 2123  subparagraph have been met for eligibility for coverage in the
 2124  corporation, any eligible risk may obtain coverage during the
 2125  pendency of such challenge.
 2126         2. In response to a state of emergency declared by the
 2127  Governor under s. 252.36, the office may activate coverage by
 2128  order for the period of the emergency upon a finding by the
 2129  office that the emergency significantly affects the availability
 2130  of residential property insurance.
 2131         (p)1. The corporation shall file with the office quarterly
 2132  statements of financial condition, an annual statement of
 2133  financial condition, and audited financial statements in the
 2134  manner prescribed by law. In addition, the corporation shall
 2135  report to the office monthly on the types, premium, exposure,
 2136  and distribution by county of its policies in force, and shall
 2137  submit other reports as the office requires to carry out its
 2138  oversight of the corporation.
 2139         2. The activities of the corporation shall be reviewed at
 2140  least annually by the office to determine whether coverage shall
 2141  be deactivated in an account, or in the Citizens account if
 2142  established by the corporation, on the basis that the conditions
 2143  giving rise to its activation no longer exist.
 2144         (q)1. The corporation shall certify to the office its needs
 2145  for annual assessments as to a particular calendar year, and for
 2146  any interim assessments that it deems to be necessary to sustain
 2147  operations as to a particular year pending the receipt of annual
 2148  assessments. Upon verification, the office shall approve such
 2149  certification, and the corporation shall levy such annual or
 2150  interim assessments. Such assessments shall be prorated, if
 2151  authority to levy exists, as provided in paragraph (b). The
 2152  corporation shall take all reasonable and prudent steps
 2153  necessary to collect the amount of assessments due from each
 2154  assessable insurer, including, if prudent, filing suit to
 2155  collect the assessments, and the office may provide such
 2156  assistance to the corporation it deems appropriate. If the
 2157  corporation is unable to collect an assessment from any
 2158  assessable insurer, the uncollected assessments shall be levied
 2159  as an additional assessment against the assessable insurers and
 2160  any assessable insurer required to pay an additional assessment
 2161  as a result of such failure to pay shall have a cause of action
 2162  against such nonpaying assessable insurer. Assessments shall be
 2163  included as an appropriate factor in the making of rates. The
 2164  failure of a surplus lines agent to collect and remit any
 2165  regular or emergency assessment levied by the corporation is
 2166  considered to be a violation of s. 626.936 and subjects the
 2167  surplus lines agent to the penalties provided in that section.
 2168         2. The governing body of any unit of local government, any
 2169  residents of which are insured by the corporation, may issue
 2170  bonds as defined in s. 125.013 or s. 166.101 from time to time
 2171  to fund an assistance program, in conjunction with the
 2172  corporation, for the purpose of defraying deficits of the
 2173  corporation. In order to avoid needless and indiscriminate
 2174  proliferation, duplication, and fragmentation of such assistance
 2175  programs, any unit of local government, any residents of which
 2176  are insured by the corporation, may provide for the payment of
 2177  losses, regardless of whether or not the losses occurred within
 2178  or outside of the territorial jurisdiction of the local
 2179  government. Revenue bonds under this subparagraph may not be
 2180  issued until validated pursuant to chapter 75, unless a state of
 2181  emergency is declared by executive order or proclamation of the
 2182  Governor pursuant to s. 252.36 making such findings as are
 2183  necessary to determine that it is in the best interests of, and
 2184  necessary for, the protection of the public health, safety, and
 2185  general welfare of residents of this state and declaring it an
 2186  essential public purpose to permit certain municipalities or
 2187  counties to issue such bonds as will permit relief to claimants
 2188  and policyholders of the corporation. Any such unit of local
 2189  government may enter into such contracts with the corporation
 2190  and with any other entity created pursuant to this subsection as
 2191  are necessary to carry out this paragraph. Any bonds issued
 2192  under this subparagraph shall be payable from and secured by
 2193  moneys received by the corporation from emergency assessments
 2194  under sub-subparagraph (b)3.c. (b)3.e., and assigned and pledged
 2195  to or on behalf of the unit of local government for the benefit
 2196  of the holders of such bonds. The funds, credit, property, and
 2197  taxing power of the state or of the unit of local government may
 2198  shall not be pledged for the payment of such bonds.
 2199         3.a. The corporation shall adopt one or more programs
 2200  subject to approval by the office for the reduction of both new
 2201  and renewal writings in the corporation. Beginning January 1,
 2202  2008, any program the corporation adopts for the payment of
 2203  bonuses to an insurer for each risk the insurer removes from the
 2204  corporation shall comply with s. 627.3511(2) and may not exceed
 2205  the amount referenced in s. 627.3511(2) for each risk removed.
 2206  The corporation may consider any prudent and not unfairly
 2207  discriminatory approach to reducing corporation writings, and
 2208  may adopt a credit against assessment liability or other
 2209  liability that provides an incentive for insurers to take risks
 2210  out of the corporation and to keep risks out of the corporation
 2211  by maintaining or increasing voluntary writings in counties or
 2212  areas in which corporation risks are highly concentrated and a
 2213  program to provide a formula under which an insurer voluntarily
 2214  taking risks out of the corporation by maintaining or increasing
 2215  voluntary writings will be relieved wholly or partially from
 2216  assessments under sub-subparagraph (b)3.a. However, any “take
 2217  out bonus” or payment to an insurer must be conditioned on the
 2218  property being insured for at least 5 years by the insurer,
 2219  unless canceled or nonrenewed by the policyholder. If the policy
 2220  is canceled or nonrenewed by the policyholder before the end of
 2221  the 5-year period, the amount of the take-out bonus must be
 2222  prorated for the time period the policy was insured. When the
 2223  corporation enters into a contractual agreement for a take-out
 2224  plan, the producing agent of record of the corporation policy is
 2225  entitled to retain any unearned commission on such policy, and
 2226  the insurer shall either:
 2227         (I) Pay to the producing agent of record of the policy, for
 2228  the first year, an amount which is the greater of the insurer’s
 2229  usual and customary commission for the type of policy written or
 2230  a policy fee equal to the usual and customary commission of the
 2231  corporation; or
 2232         (II) Offer to allow the producing agent of record of the
 2233  policy to continue servicing the policy for a period of not less
 2234  than 1 year and offer to pay the agent the insurer’s usual and
 2235  customary commission for the type of policy written. If the
 2236  producing agent is unwilling or unable to accept appointment by
 2237  the new insurer, the new insurer shall pay the agent in
 2238  accordance with sub-sub-subparagraph (I).
 2239         b. Any credit or exemption from regular assessments adopted
 2240  under this subparagraph shall last no longer than the 3 years
 2241  following the cancellation or expiration of the policy by the
 2242  corporation. With the approval of the office, the board may
 2243  extend such credits for an additional year if the insurer
 2244  guarantees an additional year of renewability for all policies
 2245  removed from the corporation, or for 2 additional years if the
 2246  insurer guarantees 2 additional years of renewability for all
 2247  policies so removed.
 2248         c. There shall be no credit, limitation, exemption, or
 2249  deferment from emergency assessments to be collected from
 2250  policyholders pursuant to sub-subparagraph (b)3.c. sub
 2251  subparagraph (b)3.e. or sub-subparagraph (b)5.c.
 2252         4. The plan shall provide for the deferment, in whole or in
 2253  part, of the assessment of an assessable insurer, other than an
 2254  emergency assessment collected from policyholders pursuant to
 2255  sub-subparagraph (b)3.e. or sub-subparagraph (b)5.c., if the
 2256  office finds that payment of the assessment would endanger or
 2257  impair the solvency of the insurer. In the event an assessment
 2258  against an assessable insurer is deferred in whole or in part,
 2259  the amount by which such assessment is deferred may be assessed
 2260  against the other assessable insurers in a manner consistent
 2261  with the basis for assessments set forth in paragraph (b).
 2262         5. Effective July 1, 2007, in order to evaluate the costs
 2263  and benefits of approved take-out plans, if the corporation pays
 2264  a bonus or other payment to an insurer for an approved take-out
 2265  plan, it shall maintain a record of the address or such other
 2266  identifying information on the property or risk removed in order
 2267  to track if and when the property or risk is later insured by
 2268  the corporation.
 2269         5.6. Any policy taken out, assumed, or removed from the
 2270  corporation is, as of the effective date of the take-out,
 2271  assumption, or removal, direct insurance issued by the insurer
 2272  and not by the corporation, even if the corporation continues to
 2273  service the policies. This subparagraph applies to policies of
 2274  the corporation and not policies taken out, assumed, or removed
 2275  from any other entity.
 2276         6.7. For a policy taken out, assumed, or removed from the
 2277  corporation, the insurer may, for a period of no more than 3
 2278  years, continue to use any of the corporation’s policy forms or
 2279  endorsements that apply to the policy taken out, removed, or
 2280  assumed without obtaining approval from the office for use of
 2281  such policy form or endorsement.
 2282         (v)1. Effective July 1, 2002, policies of the Residential
 2283  Property and Casualty Joint Underwriting Association become
 2284  policies of the corporation. All obligations, rights, assets and
 2285  liabilities of the association, including bonds, note and debt
 2286  obligations, and the financing documents pertaining to them
 2287  become those of the corporation as of July 1, 2002. The
 2288  corporation is not required to issue endorsements or
 2289  certificates of assumption to insureds during the remaining term
 2290  of in-force transferred policies.
 2291         2. Effective July 1, 2002, policies of the Florida
 2292  Windstorm Underwriting Association are transferred to the
 2293  corporation and become policies of the corporation. All
 2294  obligations, rights, assets, and liabilities of the association,
 2295  including bonds, note and debt obligations, and the financing
 2296  documents pertaining to them are transferred to and assumed by
 2297  the corporation on July 1, 2002. The corporation is not required
 2298  to issue endorsements or certificates of assumption to insureds
 2299  during the remaining term of in-force transferred policies.
 2300         3. The Florida Windstorm Underwriting Association and the
 2301  Residential Property and Casualty Joint Underwriting Association
 2302  shall take all actions necessary to further evidence the
 2303  transfers and provide the documents and instruments of further
 2304  assurance as may reasonably be requested by the corporation for
 2305  that purpose. The corporation shall execute assumptions and
 2306  instruments as the trustees or other parties to the financing
 2307  documents of the Florida Windstorm Underwriting Association or
 2308  the Residential Property and Casualty Joint Underwriting
 2309  Association may reasonably request to further evidence the
 2310  transfers and assumptions, which transfers and assumptions,
 2311  however, are effective on the date provided under this paragraph
 2312  whether or not, and regardless of the date on which, the
 2313  assumptions or instruments are executed by the corporation.
 2314  Subject to the relevant financing documents pertaining to their
 2315  outstanding bonds, notes, indebtedness, or other financing
 2316  obligations, the moneys, investments, receivables, choses in
 2317  action, and other intangibles of the Florida Windstorm
 2318  Underwriting Association shall be credited to the coastal
 2319  account of the corporation, and those of the personal lines
 2320  residential coverage account and the commercial lines
 2321  residential coverage account of the Residential Property and
 2322  Casualty Joint Underwriting Association shall be credited to the
 2323  personal lines account and the commercial lines account,
 2324  respectively, of the corporation.
 2325         4. Effective July 1, 2002, a new applicant for property
 2326  insurance coverage who would otherwise have been eligible for
 2327  coverage in the Florida Windstorm Underwriting Association is
 2328  eligible for coverage from the corporation as provided in this
 2329  subsection.
 2330         5. The transfer of all policies, obligations, rights,
 2331  assets, and liabilities from the Florida Windstorm Underwriting
 2332  Association to the corporation and the renaming of the
 2333  Residential Property and Casualty Joint Underwriting Association
 2334  as the corporation does not affect the coverage with respect to
 2335  covered policies as defined in s. 215.555(2)(c) provided to
 2336  these entities by the Florida Hurricane Catastrophe Fund. The
 2337  coverage provided by the fund to the Florida Windstorm
 2338  Underwriting Association based on its exposures as of June 30,
 2339  2002, and each June 30 thereafter, unless the corporation has
 2340  established the Citizens account, shall be redesignated as
 2341  coverage for the coastal account of the corporation.
 2342  Notwithstanding any other provision of law, the coverage
 2343  provided by the fund to the Residential Property and Casualty
 2344  Joint Underwriting Association based on its exposures as of June
 2345  30, 2002, and each June 30 thereafter, unless the corporation
 2346  has established the Citizens account, shall be transferred to
 2347  the personal lines account and the commercial lines account of
 2348  the corporation. Notwithstanding any other provision of law, the
 2349  coastal account, unless the corporation has established the
 2350  Citizens account, shall be treated, for all Florida Hurricane
 2351  Catastrophe Fund purposes, as if it were a separate
 2352  participating insurer with its own exposures, reimbursement
 2353  premium, and loss reimbursement. Likewise, the personal lines
 2354  and commercial lines accounts, unless the corporation has
 2355  established the Citizens account, shall be viewed together, for
 2356  all fund purposes, as if the two accounts were one and represent
 2357  a single, separate participating insurer with its own exposures,
 2358  reimbursement premium, and loss reimbursement. The coverage
 2359  provided by the fund to the corporation shall constitute and
 2360  operate as a full transfer of coverage from the Florida
 2361  Windstorm Underwriting Association and Residential Property and
 2362  Casualty Joint Underwriting Association to the corporation.
 2363         (w) Notwithstanding any other provision of law:
 2364         1. The pledge or sale of, the lien upon, and the security
 2365  interest in any rights, revenues, or other assets of the
 2366  corporation created or purported to be created pursuant to any
 2367  financing documents to secure any bonds or other indebtedness of
 2368  the corporation shall be and remain valid and enforceable,
 2369  notwithstanding the commencement of and during the continuation
 2370  of, and after, any rehabilitation, insolvency, liquidation,
 2371  bankruptcy, receivership, conservatorship, reorganization, or
 2372  similar proceeding against the corporation under the laws of
 2373  this state.
 2374         2. The proceeding does not relieve the corporation of its
 2375  obligation, or otherwise affect its ability to perform its
 2376  obligation, to continue to collect, or levy and collect,
 2377  assessments, policyholder surcharges or other surcharges under
 2378  sub-subparagraph (b)3.j., or any other rights, revenues, or
 2379  other assets of the corporation pledged pursuant to any
 2380  financing documents.
 2381         3. Each such pledge or sale of, lien upon, and security
 2382  interest in, including the priority of such pledge, lien, or
 2383  security interest, any such assessments, policyholder surcharges
 2384  or other surcharges, or other rights, revenues, or other assets
 2385  which are collected, or levied and collected, after the
 2386  commencement of and during the pendency of, or after, any such
 2387  proceeding shall continue unaffected by such proceeding. As used
 2388  in this subsection, the term “financing documents” means any
 2389  agreement or agreements, instrument or instruments, or other
 2390  document or documents now existing or hereafter created
 2391  evidencing any bonds or other indebtedness of the corporation or
 2392  pursuant to which any such bonds or other indebtedness has been
 2393  or may be issued and pursuant to which any rights, revenues, or
 2394  other assets of the corporation are pledged or sold to secure
 2395  the repayment of such bonds or indebtedness, together with the
 2396  payment of interest on such bonds or such indebtedness, or the
 2397  payment of any other obligation or financial product, as defined
 2398  in the plan of operation of the corporation related to such
 2399  bonds or indebtedness.
 2400         4. Any such pledge or sale of assessments, revenues,
 2401  contract rights, or other rights or assets of the corporation
 2402  shall constitute a lien and security interest, or sale, as the
 2403  case may be, that is immediately effective and attaches to such
 2404  assessments, revenues, or contract rights or other rights or
 2405  assets, whether or not imposed or collected at the time the
 2406  pledge or sale is made. Any such pledge or sale is effective,
 2407  valid, binding, and enforceable against the corporation or other
 2408  entity making such pledge or sale, and valid and binding against
 2409  and superior to any competing claims or obligations owed to any
 2410  other person or entity, including policyholders in this state,
 2411  asserting rights in any such assessments, revenues, or contract
 2412  rights or other rights or assets to the extent set forth in and
 2413  in accordance with the terms of the pledge or sale contained in
 2414  the applicable financing documents, whether or not any such
 2415  person or entity has notice of such pledge or sale and without
 2416  the need for any physical delivery, recordation, filing, or
 2417  other action.
 2418         5. As long as the corporation has any bonds outstanding,
 2419  the corporation may not file a voluntary petition under chapter
 2420  9 of the federal Bankruptcy Code or such corresponding chapter
 2421  or sections as may be in effect, from time to time, and a public
 2422  officer or any organization, entity, or other person may not
 2423  authorize the corporation to be or become a debtor under chapter
 2424  9 of the federal Bankruptcy Code or such corresponding chapter
 2425  or sections as may be in effect, from time to time, during any
 2426  such period.
 2427         6. If ordered by a court of competent jurisdiction, the
 2428  corporation may assume policies or otherwise provide coverage
 2429  for policyholders of an insurer placed in liquidation under
 2430  chapter 631, under such forms, rates, terms, and conditions as
 2431  the corporation deems appropriate, subject to approval by the
 2432  office.
 2433         (x)1. The following records of the corporation are
 2434  confidential and exempt from the provisions of s. 119.07(1) and
 2435  s. 24(a), Art. I of the State Constitution:
 2436         a. Underwriting files, except that a policyholder or an
 2437  applicant shall have access to his or her own underwriting
 2438  files. Confidential and exempt underwriting file records may
 2439  also be released to other governmental agencies upon written
 2440  request and demonstration of need; such records held by the
 2441  receiving agency remain confidential and exempt as provided
 2442  herein.
 2443         b. Claims files, until termination of all litigation and
 2444  settlement of all claims arising out of the same incident,
 2445  although portions of the claims files may remain exempt, as
 2446  otherwise provided by law. Confidential and exempt claims file
 2447  records may be released to other governmental agencies upon
 2448  written request and demonstration of need; such records held by
 2449  the receiving agency remain confidential and exempt as provided
 2450  herein.
 2451         c. Records obtained or generated by an internal auditor
 2452  pursuant to a routine audit, until the audit is completed, or if
 2453  the audit is conducted as part of an investigation, until the
 2454  investigation is closed or ceases to be active. An investigation
 2455  is considered “active” while the investigation is being
 2456  conducted with a reasonable, good faith belief that it could
 2457  lead to the filing of administrative, civil, or criminal
 2458  proceedings.
 2459         d. Matters reasonably encompassed in privileged attorney
 2460  client communications.
 2461         e. Proprietary information licensed to the corporation
 2462  under contract and the contract provides for the confidentiality
 2463  of such proprietary information.
 2464         f. All information relating to the medical condition or
 2465  medical status of a corporation employee which is not relevant
 2466  to the employee’s capacity to perform his or her duties, except
 2467  as otherwise provided in this paragraph. Information that is
 2468  exempt shall include, but is not limited to, information
 2469  relating to workers’ compensation, insurance benefits, and
 2470  retirement or disability benefits.
 2471         g. Upon an employee’s entrance into the employee assistance
 2472  program, a program to assist any employee who has a behavioral
 2473  or medical disorder, substance abuse problem, or emotional
 2474  difficulty that affects the employee’s job performance, all
 2475  records relative to that participation shall be confidential and
 2476  exempt from the provisions of s. 119.07(1) and s. 24(a), Art. I
 2477  of the State Constitution, except as otherwise provided in s.
 2478  112.0455(11).
 2479         h. Information relating to negotiations for financing,
 2480  reinsurance, depopulation, or contractual services, until the
 2481  conclusion of the negotiations.
 2482         i. Minutes of closed meetings regarding underwriting files,
 2483  and minutes of closed meetings regarding an open claims file
 2484  until termination of all litigation and settlement of all claims
 2485  with regard to that claim, except that information otherwise
 2486  confidential or exempt by law shall be redacted.
 2487         2. If an authorized insurer is considering underwriting a
 2488  risk insured by the corporation, relevant underwriting files and
 2489  confidential claims files may be released to the insurer
 2490  provided the insurer agrees in writing, notarized and under
 2491  oath, to maintain the confidentiality of such files. If a file
 2492  is transferred to an insurer, that file is no longer a public
 2493  record because it is not held by an agency subject to the
 2494  provisions of the public records law. Underwriting files and
 2495  confidential claims files may also be released to staff and the
 2496  board of governors of the market assistance plan established
 2497  pursuant to s. 627.3515, who must retain the confidentiality of
 2498  such files, except such files may be released to authorized
 2499  insurers that are considering assuming the risks to which the
 2500  files apply, provided the insurer agrees in writing, notarized
 2501  and under oath, to maintain the confidentiality of such files.
 2502  Finally, the corporation or the board or staff of the market
 2503  assistance plan may make the following information obtained from
 2504  underwriting files and confidential claims files available to an
 2505  entity that has obtained a permit to become an authorized
 2506  insurer, a reinsurer that may provide reinsurance under s.
 2507  624.610, a licensed reinsurance broker, a licensed rating
 2508  organization, a modeling company, a licensed surplus lines
 2509  agent, or a licensed general lines insurance agent: name,
 2510  address, and telephone number of the residential property owner
 2511  or insured; location of the risk; rating information; loss
 2512  history; and policy type. The receiving person must retain the
 2513  confidentiality of the information received and may use the
 2514  information only for the purposes of developing a take-out plan
 2515  or a rating plan to be submitted to the office for approval or
 2516  otherwise analyzing the underwriting of a risk or risks insured
 2517  by the corporation on behalf of the private insurance market. A
 2518  licensed surplus lines agent or licensed general lines insurance
 2519  agent may not use such information for the direct solicitation
 2520  of policyholders.
 2521         3. A policyholder who has filed suit against the
 2522  corporation has the right to discover the contents of his or her
 2523  own claims file to the same extent that discovery of such
 2524  contents would be available from a private insurer in litigation
 2525  as provided by the Florida Rules of Civil Procedure, the Florida
 2526  Evidence Code, and other applicable law. Pursuant to subpoena, a
 2527  third party has the right to discover the contents of an
 2528  insured’s or applicant’s underwriting or claims file to the same
 2529  extent that discovery of such contents would be available from a
 2530  private insurer by subpoena as provided by the Florida Rules of
 2531  Civil Procedure, the Florida Evidence Code, and other applicable
 2532  law, and subject to any confidentiality protections requested by
 2533  the corporation and agreed to by the seeking party or ordered by
 2534  the court. The corporation may release confidential underwriting
 2535  and claims file contents and information as it deems necessary
 2536  and appropriate to underwrite or service insurance policies and
 2537  claims, subject to any confidentiality protections deemed
 2538  necessary and appropriate by the corporation.
 2539         4. Portions of meetings of the corporation are exempt from
 2540  the provisions of s. 286.011 and s. 24(b), Art. I of the State
 2541  Constitution wherein confidential underwriting files or
 2542  confidential open claims files are discussed. All portions of
 2543  corporation meetings which are closed to the public shall be
 2544  recorded by a court reporter. The court reporter shall record
 2545  the times of commencement and termination of the meeting, all
 2546  discussion and proceedings, the names of all persons present at
 2547  any time, and the names of all persons speaking. No portion of
 2548  any closed meeting shall be off the record. Subject to the
 2549  provisions hereof and s. 119.07(1)(d)-(f), the court reporter’s
 2550  notes of any closed meeting shall be retained by the corporation
 2551  for a minimum of 5 years. A copy of the transcript, less any
 2552  exempt matters, of any closed meeting wherein claims are
 2553  discussed shall become public as to individual claims after
 2554  settlement of the claim.
 2555         (z) In enacting the provisions of this section, the
 2556  Legislature recognizes that both the Florida Windstorm
 2557  Underwriting Association and the Residential Property and
 2558  Casualty Joint Underwriting Association have entered into
 2559  financing arrangements that obligate each entity to service its
 2560  debts and maintain the capacity to repay funds secured under
 2561  these financing arrangements. It is the intent of the
 2562  Legislature that nothing in this section be construed to
 2563  compromise, diminish, or interfere with the rights of creditors
 2564  under such financing arrangements. It is further the intent of
 2565  the Legislature to preserve the obligations of the Florida
 2566  Windstorm Underwriting Association and Residential Property and
 2567  Casualty Joint Underwriting Association with regard to
 2568  outstanding financing arrangements, with such obligations
 2569  passing entirely and unchanged to the corporation and,
 2570  specifically, to the Citizens applicable account of the
 2571  corporation. So long as any bonds, notes, indebtedness, or other
 2572  financing obligations of the Florida Windstorm Underwriting
 2573  Association or the Residential Property and Casualty Joint
 2574  Underwriting Association are outstanding, under the terms of the
 2575  financing documents pertaining to them, the governing board of
 2576  the corporation shall have and shall exercise the authority to
 2577  levy, charge, collect, and receive all premiums, assessments,
 2578  surcharges, charges, revenues, and receipts that the
 2579  associations had authority to levy, charge, collect, or receive
 2580  under the provisions of subsection (2) and this subsection,
 2581  respectively, as they existed on January 1, 2002, to provide
 2582  moneys, without exercise of the authority provided by this
 2583  subsection, in at least the amounts, and by the times, as would
 2584  be provided under those former provisions of subsection (2) or
 2585  this subsection, respectively, so that the value, amount, and
 2586  collectability of any assets, revenues, or revenue source
 2587  pledged or committed to, or any lien thereon securing such
 2588  outstanding bonds, notes, indebtedness, or other financing
 2589  obligations will not be diminished, impaired, or adversely
 2590  affected by the amendments made by this act and to permit
 2591  compliance with all provisions of financing documents pertaining
 2592  to such bonds, notes, indebtedness, or other financing
 2593  obligations, or the security or credit enhancement for them, and
 2594  any reference in this subsection to bonds, notes, indebtedness,
 2595  financing obligations, or similar obligations, of the
 2596  corporation shall include like instruments or contracts of the
 2597  Florida Windstorm Underwriting Association and the Residential
 2598  Property and Casualty Joint Underwriting Association to the
 2599  extent not inconsistent with the provisions of the financing
 2600  documents pertaining to them.
 2601         (ii) The corporation shall revise the programs adopted
 2602  pursuant to sub-subparagraph (q)3.a. for personal lines
 2603  residential policies to maximize policyholder options and
 2604  encourage increased participation by insurers and agents. After
 2605  January 1, 2017, a policy may not be taken out of the
 2606  corporation unless the provisions of this paragraph are met.
 2607         1. The corporation must publish a periodic schedule of
 2608  cycles during which an insurer may identify, and notify the
 2609  corporation of, policies that the insurer is requesting to take
 2610  out. A request must include a description of the coverage
 2611  offered and an estimated premium and must be submitted to the
 2612  corporation in a form and manner prescribed by the corporation.
 2613         2. The corporation must maintain and make available to the
 2614  agent of record a consolidated list of all insurers requesting
 2615  to take out a policy. The list must include a description of the
 2616  coverage offered and the estimated premium for each take-out
 2617  request.
 2618         3. If a policyholder receives a take-out offer from an
 2619  authorized insurer, the risk is no longer eligible for coverage
 2620  with the corporation unless the premium for coverage from the
 2621  authorized insurer is more than 20 percent greater than the
 2622  renewal premium for comparable coverage from the corporation
 2623  pursuant to sub-subparagraph (c)5.d. (c)5.c. This subparagraph
 2624  applies to take-out offers that are part of an application to
 2625  participate in depopulation submitted to the office on or after
 2626  January 1, 2023. This subparagraph only applies to a policy that
 2627  covers a primary residence.
 2628         4. The corporation must provide written notice to the
 2629  policyholder and the agent of record regarding all insurers
 2630  requesting to take out the policy. The notice must be in a
 2631  format prescribed by the corporation and include, for each take
 2632  out offer:
 2633         a. The amount of the estimated premium;
 2634         b. A description of the coverage; and
 2635         c. A comparison of the estimated premium and coverage
 2636  offered by the insurer to the estimated premium and coverage
 2637  provided by the corporation.
 2638         (nn)The corporation may share its claims data with the
 2639  National Insurance Crime Bureau, provided that the National
 2640  Insurance Crime Bureau agrees to maintain the confidentiality of
 2641  such documents as otherwise provided for in paragraph (x).
 2642         (7)TRADEMARKS, COPYRIGHTS, OR PATENTS.—Notwithstanding any
 2643  other law, the corporation is authorized, in its own name, to:
 2644         (a) Perform all things necessary to secure letters of
 2645  patent, copyrights, or trademarks on any work products and
 2646  enforce its rights therein.
 2647         (b) License, lease, assign, or otherwise give written
 2648  consent to any person, firm, or corporation for the manufacture
 2649  or use thereof, on a royalty basis or for such other
 2650  consideration as the corporation deems proper.
 2651         (c) Take any action necessary, including legal action, to
 2652  protect trademarks, copyrights, or patents against improper or
 2653  unlawful use or infringement.
 2654         (d) Enforce the collection of any sums due the corporation
 2655  for the manufacture or use thereof by any other party.
 2656         (e) Sell any of its trademarks, copyrights, or patents and
 2657  execute all instruments necessary to consummate any such sale.
 2658         (f) Do all other acts necessary and proper for the
 2659  execution of powers and duties herein conferred upon the
 2660  corporation in order to administer this subsection.
 2661         Section 3. Subsection (3) and paragraphs (d), (e), and (f)
 2662  of subsection (6) of section 627.3511, Florida Statutes, are
 2663  amended to read:
 2664         627.3511 Depopulation of Citizens Property Insurance
 2665  Corporation.—
 2666         (3) EXEMPTION FROM DEFICIT ASSESSMENTS.—
 2667         (a) The calculation of an insurer’s assessment liability
 2668  under s. 627.351(6)(b)3.a. shall, for an insurer that in any
 2669  calendar year removes 50,000 or more risks from the Citizens
 2670  Property Insurance Corporation, either by issuance of a policy
 2671  upon expiration or cancellation of the corporation policy or by
 2672  assumption of the corporation’s obligations with respect to in
 2673  force policies, exclude such removed policies for the succeeding
 2674  3 years, as follows:
 2675         1. In the first year following removal of the risks, the
 2676  risks are excluded from the calculation to the extent of 100
 2677  percent.
 2678         2. In the second year following removal of the risks, the
 2679  risks are excluded from the calculation to the extent of 75
 2680  percent.
 2681         3. In the third year following removal of the risks, the
 2682  risks are excluded from the calculation to the extent of 50
 2683  percent.
 2684  
 2685  If the removal of risks is accomplished through assumption of
 2686  obligations with respect to in-force policies, the corporation
 2687  shall pay to the assuming insurer all unearned premium with
 2688  respect to such policies less any policy acquisition costs
 2689  agreed to by the corporation and assuming insurer. The term
 2690  “policy acquisition costs” is defined as costs of issuance of
 2691  the policy by the corporation which includes agent commissions,
 2692  servicing company fees, and premium tax. This paragraph does not
 2693  apply to an insurer that, at any time within 5 years before
 2694  removing the risks, had a market share in excess of 0.1 percent
 2695  of the statewide aggregate gross direct written premium for any
 2696  line of property insurance, or to an affiliate of such an
 2697  insurer. This paragraph does not apply unless either at least 40
 2698  percent of the risks removed from the corporation are located in
 2699  Miami-Dade, Broward, and Palm Beach Counties, or at least 30
 2700  percent of the risks removed from the corporation are located in
 2701  such counties and an additional 50 percent of the risks removed
 2702  from the corporation are located in other coastal counties.
 2703         (b) An insurer that first wrote personal lines residential
 2704  property coverage in this state on or after July 1, 1994, is
 2705  exempt from regular deficit assessments imposed pursuant to s.
 2706  627.351(6)(b)3.a., but not emergency assessments collected from
 2707  policyholders pursuant to s. 627.351(6)(b)3.e., of the Citizens
 2708  Property Insurance Corporation until the earlier of the
 2709  following:
 2710         1. The end of the calendar year in which it first wrote 0.5
 2711  percent or more of the statewide aggregate direct written
 2712  premium for any line of residential property coverage; or
 2713         2. December 31, 1997, or December 31 of the third year in
 2714  which it wrote such coverage in this state, whichever is later.
 2715         (c) Other than an insurer that is exempt under paragraph
 2716  (b), an insurer that in any calendar year increases its total
 2717  structure exposure subject to wind coverage by 25 percent or
 2718  more over its exposure for the preceding calendar year is, with
 2719  respect to that year, exempt from deficit assessments imposed
 2720  pursuant to s. 627.351(6)(b)3.a., but not emergency assessments
 2721  collected from policyholders pursuant to s. 627.351(6)(b)3.e.,
 2722  of the Citizens Property Insurance Corporation attributable to
 2723  such increase in exposure.
 2724         (d) Any exemption or credit from regular assessments
 2725  authorized by this section shall last no longer than 3 years
 2726  following the cancellation or expiration of the policy by the
 2727  corporation. With the approval of the office, the board may
 2728  extend such credits for an additional year if the insurer
 2729  guarantees an additional year of renewability for all policies
 2730  removed from the corporation, or for 2 additional years if the
 2731  insurer guarantees 2 additional years of renewability for all
 2732  policies so removed.
 2733         (6) COMMERCIAL RESIDENTIAL TAKE-OUT PLANS.—
 2734         (d) The calculation of an insurer’s regular assessment
 2735  liability under s. 627.351(6)(b)3.a., but not emergency
 2736  assessments collected from policyholders pursuant to s.
 2737  627.351(6)(b)3.e., shall, with respect to commercial residential
 2738  policies removed from the corporation under an approved take-out
 2739  plan, exclude such removed policies for the succeeding 3 years,
 2740  as follows:
 2741         1. In the first year following removal of the policies, the
 2742  policies are excluded from the calculation to the extent of 100
 2743  percent.
 2744         2. In the second year following removal of the policies,
 2745  the policies are excluded from the calculation to the extent of
 2746  75 percent.
 2747         3. In the third year following removal of the policies, the
 2748  policies are excluded from the calculation to the extent of 50
 2749  percent.
 2750         (e) An insurer that first wrote commercial residential
 2751  property coverage in this state on or after June 1, 1996, is
 2752  exempt from regular assessments under s. 627.351(6)(b)3.a., but
 2753  not emergency assessments collected from policyholders pursuant
 2754  to s. 627.351(6)(b)3.e., with respect to commercial residential
 2755  policies until the earlier of:
 2756         1. The end of the calendar year in which such insurer first
 2757  wrote 0.5 percent or more of the statewide aggregate direct
 2758  written premium for commercial residential property coverage; or
 2759         2. December 31 of the third year in which such insurer
 2760  wrote commercial residential property coverage in this state.
 2761         (f) An insurer that is not otherwise exempt from regular
 2762  assessments under s. 627.351(6)(b)3.a. with respect to
 2763  commercial residential policies is, for any calendar year in
 2764  which such insurer increased its total commercial residential
 2765  hurricane exposure by 25 percent or more over its exposure for
 2766  the preceding calendar year, exempt from regular assessments
 2767  under s. 627.351(6)(b)3.a., but not emergency assessments
 2768  collected from policyholders pursuant to s. 627.351(6)(b)3.e.,
 2769  attributable to such increased exposure.
 2770         Section 4. Subsections (5), (6), and (7) of section
 2771  627.3518, Florida Statutes, are amended to read:
 2772         627.3518 Citizens Property Insurance Corporation
 2773  policyholder eligibility clearinghouse program.—The purpose of
 2774  this section is to provide a framework for the corporation to
 2775  implement a clearinghouse program by January 1, 2014.
 2776         (5) Notwithstanding s. 627.3517, any applicant for new
 2777  coverage from the corporation is not eligible for coverage from
 2778  the corporation if provided an offer of coverage from an
 2779  authorized insurer through the program at a premium that is at
 2780  or below the eligibility threshold for applicants for new
 2781  coverage of a primary residence established in s.
 2782  627.351(6)(c)5.a., or for applicants for new coverage of a risk
 2783  that is not a primary residence established in s.
 2784  627.351(6)(c)5.b. Whenever an offer of coverage for a personal
 2785  lines risk is received for a policyholder of the corporation at
 2786  renewal from an authorized insurer through the program which is
 2787  at or below the eligibility threshold for primary residences of
 2788  policyholders of the corporation established in s.
 2789  627.351(6)(c)5.a., or the eligibility threshold for risks that
 2790  are not primary residences of policyholders of the corporation
 2791  established in s. 627.351(6)(c)5.b., the risk is not eligible
 2792  for coverage with the corporation. In the event an offer of
 2793  coverage for a new applicant is received from an authorized
 2794  insurer through the program, and the premium offered exceeds the
 2795  eligibility threshold for applicants for new coverage of a
 2796  primary residence established in s. 627.351(6)(c)5.a., or the
 2797  eligibility threshold for applicants for new coverage on a risk
 2798  that is not a primary residence established in s.
 2799  627.351(6)(c)5.b., the applicant or insured may elect to accept
 2800  such coverage, or may elect to accept or continue coverage with
 2801  the corporation. In the event an offer of coverage for a
 2802  personal lines risk is received from an authorized insurer at
 2803  renewal through the program, and the premium offered exceeds the
 2804  eligibility threshold for primary residences of policyholders of
 2805  the corporation established in s. 627.351(6)(c)5.a., or exceeds
 2806  the eligibility threshold for risks that are not primary
 2807  residences of policyholders of the corporation established in s.
 2808  627.351(6)(c)5.b., the insured may elect to accept such
 2809  coverage, or may elect to accept or continue coverage with the
 2810  corporation. Section 627.351(6)(c)5.a.(I) and b.(I) does not
 2811  apply to an offer of coverage from an authorized insurer
 2812  obtained through the program. As used in this subsection, the
 2813  term “primary residence” has the same meaning as in s.
 2814  627.351(6)(c)2.a.
 2815         (6) Independent insurance agents submitting new
 2816  applications for coverage or that are the agent of record on a
 2817  renewal policy submitted to the program:
 2818         (a) Are granted and must maintain ownership and the
 2819  exclusive use of expirations, records, or other written or
 2820  electronic information directly related to such applications or
 2821  renewals written through the corporation or through an insurer
 2822  participating in the program, notwithstanding s.
 2823  627.351(6)(c)5.a.(I)(B) and (II)(B) or s.
 2824  627.351(6)(c)5.b.(I)(B) and (II)(B). Such ownership is granted
 2825  for as long as the insured remains with the agency or until sold
 2826  or surrendered in writing by the agent. Contracts with the
 2827  corporation or required by the corporation must not amend,
 2828  modify, interfere with, or limit such rights of ownership. Such
 2829  expirations, records, or other written or electronic information
 2830  may be used to review an application, issue a policy, or for any
 2831  other purpose necessary for placing such business through the
 2832  program.
 2833         (b) May not be required to be appointed by any insurer
 2834  participating in the program for policies written solely through
 2835  the program, notwithstanding the provisions of s. 626.112.
 2836         (c) May accept an appointment from any insurer
 2837  participating in the program.
 2838         (d) May enter into either a standard or limited agency
 2839  agreement with the insurer, at the insurer’s option.
 2840  
 2841  Applicants ineligible for coverage in accordance with subsection
 2842  (5) remain ineligible if their independent agent is unwilling or
 2843  unable to enter into a standard or limited agency agreement with
 2844  an insurer participating in the program.
 2845         (7) Exclusive agents submitting new applications for
 2846  coverage or that are the agent of record on a renewal policy
 2847  submitted to the program:
 2848         (a) Must maintain ownership and the exclusive use of
 2849  expirations, records, or other written or electronic information
 2850  directly related to such applications or renewals written
 2851  through the corporation or through an insurer participating in
 2852  the program, notwithstanding s. 627.351(6)(c)5.a.(I)(B) and
 2853  (II)(B) or s. 627.351(6)(c)5.b.(I)(B) and (II)(B). Contracts
 2854  with the corporation or required by the corporation must not
 2855  amend, modify, interfere with, or limit such rights of
 2856  ownership. Such expirations, records, or other written or
 2857  electronic information may be used to review an application,
 2858  issue a policy, or for any other purpose necessary for placing
 2859  such business through the program.
 2860         (b) May not be required to be appointed by any insurer
 2861  participating in the program for policies written solely through
 2862  the program, notwithstanding the provisions of s. 626.112.
 2863         (c) Must only facilitate the placement of an offer of
 2864  coverage from an insurer whose limited servicing agreement is
 2865  approved by that exclusive agent’s exclusive insurer.
 2866         (d) May enter into a limited servicing agreement with the
 2867  insurer making an offer of coverage, and only after the
 2868  exclusive agent’s insurer has approved the limited servicing
 2869  agreement terms. The exclusive agent’s insurer must approve a
 2870  limited service agreement for the program for any insurer for
 2871  which it has approved a service agreement for other purposes.
 2872  
 2873  Applicants ineligible for coverage in accordance with subsection
 2874  (5) remain ineligible if their exclusive agent is unwilling or
 2875  unable to enter into a standard or limited agency agreement with
 2876  an insurer making an offer of coverage to that applicant.
 2877         Section 5. Except as otherwise expressly provided in this
 2878  act and except for this section, which shall take effect upon
 2879  becoming a law, this act shall take effect July 1, 2024.
 2880  
 2881  ================= T I T L E  A M E N D M E N T ================
 2882  And the title is amended as follows:
 2883         Delete everything before the enacting clause
 2884  and insert:
 2885                        A bill to be entitled                      
 2886         An act relating to Citizens Property Insurance
 2887         Corporation; amending s. 627.351, F.S.; revising a
 2888         requirement for certain flood insurance; revising
 2889         circumstances under which certain insurers’
 2890         associations must levy market equalization surcharges
 2891         on policyholders; deleting obsolete language;
 2892         providing that certain accounts for Citizens Property
 2893         Insurance Corporation revenues, assets, liabilities,
 2894         losses, and expenses are now maintained as the
 2895         Citizens account; revising the requirements for
 2896         certain coverages by the corporation; requiring the
 2897         inclusion of quota share primary insurance in certain
 2898         policies; deleting provisions relating to legislative
 2899         goals; conforming provisions to changes made by the
 2900         act; revising provisions relating to deficits in
 2901         certain accounts; revising the definition of the term
 2902         “assessments”; deleting provisions relating to
 2903         surcharges and regular assessments upon determination
 2904         of projected deficits; deleting provisions relating to
 2905         funds available to the corporation as sources of
 2906         revenue and bonds; deleting definitions; deleting
 2907         provisions relating to the duties of the Florida
 2908         Surplus Lines Service Office; deleting provisions
 2909         relating to disposition of excess amounts of
 2910         assessments and surcharges; defining the terms
 2911         “approved surplus lines insurer” and “primary
 2912         residence”; providing applicability of certain
 2913         provisions relating to personal lines residential
 2914         risks coverage by the corporation; providing that
 2915         certain personal lines residential risks are not
 2916         eligible for any policy issued by the corporation;
 2917         providing an exception; providing that certain
 2918         personal lines residential risks are not eligible for
 2919         coverage with the corporation under certain
 2920         circumstances; providing an exception; providing that
 2921         certain risks are eligible for certain standard
 2922         policies; providing that certain risks are eligible
 2923         for certain basic policies; requiring that the
 2924         determination of the type of policy be provided on the
 2925         basis of certain standards and practices; providing
 2926         that certain policyholders do not remain eligible for
 2927         coverage from the corporation; requiring the insurer
 2928         to pay the producing agent of record a certain amount
 2929         or make certain offers under certain circumstances;
 2930         providing that the producing agent of record is
 2931         entitled to retain certain commission on the policy;
 2932         requiring the insurer to pay the producing agent of
 2933         record a certain amount or make certain offers under
 2934         certain circumstances; revising the corporation’s plan
 2935         of operation; revising the required statements from
 2936         applicants for coverage; revising the duties of the
 2937         executive director of the corporation; authorizing the
 2938         executive director to assign and appoint designees;
 2939         deleting an applicability provision relating to bond
 2940         requirements; deleting provisions relating to certain
 2941         insurer assessment deferments; deleting provisions
 2942         relating to the intangibles of and coverage by the
 2943         Florida Windstorm Underwriting Association and the
 2944         corporation coastal account; authorizing the
 2945         corporation and certain persons to make specified
 2946         information obtained from underwriting files and
 2947         confidential claims files available to licensed
 2948         surplus lines agents; prohibiting such agents from
 2949         using such information for specified purposes;
 2950         providing applicability of provisions relating to
 2951         take-out offers that are part of applications to
 2952         participate in depopulation; authorizing the
 2953         corporation to share its claims data with a specified
 2954         entity; authorizing the corporation to take certain
 2955         actions relating to trademarks, copyrights, or
 2956         patents; amending s. 627.3511, F.S.; conforming
 2957         provisions to changes made by the act; conforming
 2958         cross-references; amending s. 627.3518, F.S.; revising
 2959         eligibility requirements for policyholders at renewal
 2960         and for applicants for new coverage; defining the term
 2961         “primary residence”; providing effective dates.