Florida Senate - 2024                        COMMITTEE AMENDMENT
       Bill No. CS for SB 1716
       
       
       
       
       
       
                                Ì443848NÎ443848                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  02/28/2024           .                                
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       The Committee on Fiscal Policy (Boyd) recommended the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 708 - 2925
    4  and insert:
    5         c.The office may evaluate whether there is a reasonable
    6  degree of competition within an individual zip code located in a
    7  county that has not been determined by the office to lack a
    8  reasonable degree of competition at the county level pursuant to
    9  sub-subparagraph b. If the office determines that such zip code
   10  lacks a reasonable degree of competition, structures located
   11  within that zip code that have a dwelling replacement cost of
   12  $700,000 or more but less than $1 million and single condominium
   13  units that have a combined dwelling and contents replacement
   14  cost of $700,000 or more but less than $1 million are eligible
   15  for coverage from the corporation.
   16         4. It is the intent of the Legislature that policyholders,
   17  applicants, and agents of the corporation receive service and
   18  treatment of the highest possible level but never less than that
   19  generally provided in the voluntary market. It is also intended
   20  that the corporation be held to service standards no less than
   21  those applied to insurers in the voluntary market by the office
   22  with respect to responsiveness, timeliness, customer courtesy,
   23  and overall dealings with policyholders, applicants, or agents
   24  of the corporation.
   25         5.a. Effective January 1, 2009, a personal lines
   26  residential structure that is located in the “wind-borne debris
   27  region,” as defined in s. 1609.2, International Building Code
   28  (2006), and that has an insured value on the structure of
   29  $750,000 or more is not eligible for coverage by the corporation
   30  unless the structure has opening protections as required under
   31  the Florida Building Code for a newly constructed residential
   32  structure in that area. A residential structure is deemed to
   33  comply with this sub-subparagraph if it has shutters or opening
   34  protections on all openings and if such opening protections
   35  complied with the Florida Building Code at the time they were
   36  installed.
   37         b. Any major structure, as defined in s. 161.54(6)(a), that
   38  is newly constructed, or rebuilt, repaired, restored, or
   39  remodeled to increase the total square footage of finished area
   40  by more than 25 percent, pursuant to a permit applied for after
   41  July 1, 2015, is not eligible for coverage by the corporation if
   42  the structure is seaward of the coastal construction control
   43  line established pursuant to s. 161.053 or is within the Coastal
   44  Barrier Resources System as designated by 16 U.S.C. ss. 3501
   45  3510.
   46         6. With respect to wind-only coverage for commercial lines
   47  residential condominiums, effective July 1, 2014, a condominium
   48  shall be deemed ineligible for coverage if 50 percent or more of
   49  the units are rented more than eight times in a calendar year
   50  for a rental agreement period of less than 30 days.
   51         (b)1. All insurers authorized to write one or more subject
   52  lines of business in this state are subject to assessment by the
   53  corporation and, for the purposes of this subsection, are
   54  referred to collectively as “assessable insurers.” Insurers
   55  writing one or more subject lines of business in this state
   56  pursuant to part VIII of chapter 626 are not assessable
   57  insurers; however, insureds who procure one or more subject
   58  lines of business in this state pursuant to part VIII of chapter
   59  626 are subject to assessment by the corporation and are
   60  referred to collectively as “assessable insureds.” An insurer’s
   61  assessment liability begins on the first day of the calendar
   62  year following the year in which the insurer was issued a
   63  certificate of authority to transact insurance for subject lines
   64  of business in this state and terminates 1 year after the end of
   65  the first calendar year during which the insurer no longer holds
   66  a certificate of authority to transact insurance for subject
   67  lines of business in this state.
   68         2.a. All revenues, assets, liabilities, losses, and
   69  expenses of the corporation shall be maintained in the Citizens
   70  account. The Citizens account may provide divided into three
   71  separate accounts as follows:
   72         a.(I)A personal lines account for Personal residential
   73  policies that provide issued by the corporation which provides
   74  comprehensive, multiperil coverage on risks that are not located
   75  in areas eligible for coverage by the Florida Windstorm
   76  Underwriting Association as those areas were defined on January
   77  1, 2002, and for policies that do not provide coverage for the
   78  peril of wind on risks that are located in such areas;
   79         b.(II)A commercial lines account for Commercial
   80  residential and commercial nonresidential policies that provide
   81  issued by the corporation which provides coverage for basic
   82  property perils on risks that are not located in areas eligible
   83  for coverage by the Florida Windstorm Underwriting Association
   84  as those areas were defined on January 1, 2002, and for policies
   85  that do not provide coverage for the peril of wind on risks that
   86  are located in such areas; and
   87         c.(III)A coastal account for Personal residential policies
   88  and commercial residential and commercial nonresidential
   89  property policies that provide issued by the corporation which
   90  provides coverage for the peril of wind on risks that are
   91  located in areas eligible for coverage by the Florida Windstorm
   92  Underwriting Association as those areas were defined on January
   93  1, 2002. The corporation may offer policies that provide
   94  multiperil coverage and shall offer policies that provide
   95  coverage only for the peril of wind for risks located in areas
   96  eligible for coverage by the Florida Windstorm Underwriting
   97  Association, as those areas were defined on January 1, 2002 in
   98  the coastal account. Effective July 1, 2014, The corporation may
   99  not offer shall cease offering new commercial residential
  100  policies providing multiperil coverage but and shall instead
  101  continue to offer commercial residential wind-only policies, and
  102  may offer commercial residential policies excluding wind.
  103  However, the corporation may, however, continue to renew a
  104  commercial residential multiperil policy on a building that was
  105  is insured by the corporation on June 30, 2014, under a
  106  multiperil policy. In issuing multiperil coverage under this
  107  sub-subparagraph, the corporation may use its approved policy
  108  forms and rates for risks located in areas not eligible for
  109  coverage by the Florida Windstorm Underwriting Association, as
  110  those areas were defined on January 1, 2002, and for policies
  111  that do not provide coverage for the peril of wind on risks that
  112  are located in such areas the personal lines account. An
  113  applicant or insured who is eligible to purchase a multiperil
  114  policy from the corporation may purchase a multiperil policy
  115  from an authorized insurer without prejudice to the applicant’s
  116  or insured’s eligibility to prospectively purchase a policy that
  117  provides coverage only for the peril of wind from the
  118  corporation. An applicant or insured who is eligible for a
  119  corporation policy that provides coverage only for the peril of
  120  wind may elect to purchase or retain such policy and also
  121  purchase or retain coverage excluding wind from an authorized
  122  insurer without prejudice to the applicant’s or insured’s
  123  eligibility to prospectively purchase a policy that provides
  124  multiperil coverage from the corporation. The following
  125  policies, which provide coverage only for the peril of wind,
  126  must also include quota share primary insurance under
  127  subparagraph (c)2.:
  128         (I)Personal residential policies and commercial
  129  residential and commercial nonresidential property policies that
  130  provide coverage for the peril of wind on risks that are located
  131  in areas eligible for coverage by the Florida Windstorm
  132  Underwriting Association, as those areas were defined on January
  133  1, 2002;
  134         (II)Policies that provide multiperil coverage, if offered
  135  by the corporation, and policies that provide coverage only for
  136  the peril of wind for risks located in areas eligible for
  137  coverage by the Florida Windstorm Underwriting Association, as
  138  those areas were defined on January 1, 2002;
  139         (III)Commercial residential wind-only policies;
  140         (IV)Commercial residential policies excluding wind, if
  141  offered by the corporation; and
  142         (V)Commercial residential multiperil policies on a
  143  building that was insured by the corporation on June 30, 2014 It
  144  is the goal of the Legislature that there be an overall average
  145  savings of 10 percent or more for a policyholder who currently
  146  has a wind-only policy with the corporation, and an ex-wind
  147  policy with a voluntary insurer or the corporation, and who
  148  obtains a multiperil policy from the corporation. It is the
  149  intent of the Legislature that the offer of multiperil coverage
  150  in the coastal account be made and implemented in a manner that
  151  does not adversely affect the tax-exempt status of the
  152  corporation or creditworthiness of or security for currently
  153  outstanding financing obligations or credit facilities of the
  154  coastal account, the personal lines account, or the commercial
  155  lines account. The coastal account must also include quota share
  156  primary insurance under subparagraph (c)2.
  157  
  158  The area eligible for coverage with the corporation under this
  159  sub-subparagraph under the coastal account also includes the
  160  area within Port Canaveral, which is bordered on the south by
  161  the City of Cape Canaveral, bordered on the west by the Banana
  162  River, and bordered on the north by Federal Government property.
  163         3.With respect to a deficit in the Citizens account:
  164         a.Upon a determination by the board of governors that the
  165  Citizens account has a projected deficit, the board shall levy a
  166  Citizens policyholder surcharge against all policyholders of the
  167  corporation.
  168         (I)The surcharge shall be levied as a uniform percentage
  169  of the premium for the policy of up to 15 percent of such
  170  premium, which funds shall be used to offset the deficit.
  171         (II)The surcharge is payable upon cancellation or
  172  termination of the policy, upon renewal of the policy, or upon
  173  issuance of a new policy by the corporation within the first 12
  174  months after the date of the levy or the period of time
  175  necessary to fully collect the surcharge amount.
  176         (III)The surcharge is not considered premium and is not
  177  subject to commissions, fees, or premium taxes. However, failure
  178  to pay the surcharge shall be treated as failure to pay premium.
  179         b. The three separate accounts must be maintained as long
  180  as financing obligations entered into by the Florida Windstorm
  181  Underwriting Association or Residential Property and Casualty
  182  Joint Underwriting Association are outstanding, in accordance
  183  with the terms of the corresponding financing documents. If no
  184  such financing obligations remain outstanding or if the
  185  financing documents allow for combining of accounts, the
  186  corporation may consolidate the three separate accounts into a
  187  new account, to be known as the Citizens account, for all
  188  revenues, assets, liabilities, losses, and expenses of the
  189  corporation. The Citizens account, if established by the
  190  corporation, is authorized to provide coverage to the same
  191  extent as provided under each of the three separate accounts.
  192  The authority to provide coverage under the Citizens account is
  193  set forth in subparagraph 4. Consistent with this subparagraph
  194  and prudent investment policies that minimize the cost of
  195  carrying debt, the board shall exercise its best efforts to
  196  retire existing debt or obtain the approval of necessary parties
  197  to amend the terms of existing debt, so as to structure the most
  198  efficient plan for consolidating the three separate accounts
  199  into a single account. Once the accounts are combined into one
  200  account, this subparagraph and subparagraph 3. shall be replaced
  201  in their entirety by subparagraphs 4. and 5.
  202         c. Creditors of the Residential Property and Casualty Joint
  203  Underwriting Association and the accounts specified in sub-sub
  204  subparagraphs a.(I) and (II) may have a claim against, and
  205  recourse to, those accounts and no claim against, or recourse
  206  to, the account referred to in sub-sub-subparagraph a.(III).
  207  Creditors of the Florida Windstorm Underwriting Association have
  208  a claim against, and recourse to, the account referred to in
  209  sub-sub-subparagraph a.(III) and no claim against, or recourse
  210  to, the accounts referred to in sub-sub-subparagraphs a.(I) and
  211  (II).
  212         d. Revenues, assets, liabilities, losses, and expenses not
  213  attributable to particular accounts shall be prorated among the
  214  accounts.
  215         e. The Legislature finds that the revenues of the
  216  corporation are revenues that are necessary to meet the
  217  requirements set forth in documents authorizing the issuance of
  218  bonds under this subsection.
  219         f. The income of the corporation may not inure to the
  220  benefit of any private person.
  221         3. With respect to a deficit in an account:
  222         a. After accounting for the Citizens policyholder surcharge
  223  imposed under sub-subparagraph j., if the remaining projected
  224  deficit incurred in the coastal account in a particular calendar
  225  year:
  226         (I) Is not greater than 2 percent of the aggregate
  227  statewide direct written premium for the subject lines of
  228  business for the prior calendar year, the entire deficit shall
  229  be recovered through regular assessments of assessable insurers
  230  under paragraph (q) and assessable insureds.
  231         (II) Exceeds 2 percent of the aggregate statewide direct
  232  written premium for the subject lines of business for the prior
  233  calendar year, the corporation shall levy regular assessments on
  234  assessable insurers under paragraph (q) and on assessable
  235  insureds in an amount equal to the greater of 2 percent of the
  236  projected deficit or 2 percent of the aggregate statewide direct
  237  written premium for the subject lines of business for the prior
  238  calendar year. Any remaining projected deficit shall be
  239  recovered through emergency assessments under sub-subparagraph
  240  e.
  241         b. Each assessable insurer’s share of the amount being
  242  assessed under sub-subparagraph a. must be in the proportion
  243  that the assessable insurer’s direct written premium for the
  244  subject lines of business for the year preceding the assessment
  245  bears to the aggregate statewide direct written premium for the
  246  subject lines of business for that year. The assessment
  247  percentage applicable to each assessable insured is the ratio of
  248  the amount being assessed under sub-subparagraph a. to the
  249  aggregate statewide direct written premium for the subject lines
  250  of business for the prior year. Assessments levied by the
  251  corporation on assessable insurers under sub-subparagraph a.
  252  must be paid as required by the corporation’s plan of operation
  253  and paragraph (q). Assessments levied by the corporation on
  254  assessable insureds under sub-subparagraph a. shall be collected
  255  by the surplus lines agent at the time the surplus lines agent
  256  collects the surplus lines tax required by s. 626.932, and paid
  257  to the Florida Surplus Lines Service Office at the time the
  258  surplus lines agent pays the surplus lines tax to that office.
  259  Upon receipt of regular assessments from surplus lines agents,
  260  the Florida Surplus Lines Service Office shall transfer the
  261  assessments directly to the corporation as determined by the
  262  corporation.
  263         c. The corporation may not levy regular assessments under
  264  paragraph (q) pursuant to sub-subparagraph a. or sub
  265  subparagraph b. if the three separate accounts in sub-sub
  266  subparagraphs 2.a.(I)-(III) have been consolidated into the
  267  Citizens account pursuant to sub-subparagraph 2.b. However, the
  268  outstanding balance of any regular assessment levied by the
  269  corporation before establishment of the Citizens account remains
  270  payable to the corporation.
  271         b.d. After accounting for the Citizens policyholder
  272  surcharge imposed under sub-subparagraph a. j., the remaining
  273  projected deficits in the Citizens personal lines account and in
  274  the commercial lines account in a particular calendar year shall
  275  be recovered through emergency assessments under sub
  276  subparagraph c. e.
  277         c.e. Upon a determination by the board of governors that a
  278  projected deficit in the Citizens an account exceeds the amount
  279  that is expected to be recovered through surcharges regular
  280  assessments under sub-subparagraph a., plus the amount that is
  281  expected to be recovered through surcharges under sub
  282  subparagraph j., the board, after verification by the office,
  283  shall levy emergency assessments for as many years as necessary
  284  to cover the deficits, to be collected by assessable insurers
  285  and the corporation and collected from assessable insureds upon
  286  issuance or renewal of policies for subject lines of business,
  287  excluding National Flood Insurance Program policies. The amount
  288  collected in a particular year must be a uniform percentage of
  289  that year’s direct written premium for subject lines of business
  290  and the Citizens account all accounts of the corporation,
  291  excluding National Flood Insurance Program policy premiums, as
  292  annually determined by the board and verified by the office. The
  293  office shall verify the arithmetic calculations involved in the
  294  board’s determination within 30 days after receipt of the
  295  information on which the determination was based. The office
  296  shall notify assessable insurers and the Florida Surplus Lines
  297  Service Office of the date on which assessable insurers shall
  298  begin to collect and assessable insureds shall begin to pay such
  299  assessment. The date must be at least 90 days after the date the
  300  corporation levies emergency assessments pursuant to this sub
  301  subparagraph. Notwithstanding any other provision of law, the
  302  corporation and each assessable insurer that writes subject
  303  lines of business shall collect emergency assessments from its
  304  policyholders without such obligation being affected by any
  305  credit, limitation, exemption, or deferment. Emergency
  306  assessments levied by the corporation on assessable insureds
  307  shall be collected by the surplus lines agent at the time the
  308  surplus lines agent collects the surplus lines tax required by
  309  s. 626.932 and paid to the Florida Surplus Lines Service Office
  310  at the time the surplus lines agent pays the surplus lines tax
  311  to that office. The emergency assessments collected shall be
  312  transferred directly to the corporation on a periodic basis as
  313  determined by the corporation and held by the corporation solely
  314  in the Citizens applicable account. The aggregate amount of
  315  emergency assessments levied for the Citizens an account in any
  316  calendar year may be less than but may not exceed the greater of
  317  10 percent of the amount needed to cover the deficit, plus
  318  interest, fees, commissions, required reserves, and other costs
  319  associated with financing the original deficit, or 10 percent of
  320  the aggregate statewide direct written premium for subject lines
  321  of business and the Citizens account all accounts of the
  322  corporation for the prior year, plus interest, fees,
  323  commissions, required reserves, and other costs associated with
  324  financing the deficit.
  325         d.f. The corporation may pledge the proceeds of
  326  assessments, projected recoveries from the Florida Hurricane
  327  Catastrophe Fund, other insurance and reinsurance recoverables,
  328  policyholder surcharges and other surcharges, and other funds
  329  available to the corporation as the source of revenue for and to
  330  secure bonds issued under paragraph (q), bonds or other
  331  indebtedness issued under subparagraph (c)3., or lines of credit
  332  or other financing mechanisms issued or created under this
  333  subsection, or to retire any other debt incurred as a result of
  334  deficits or events giving rise to deficits, or in any other way
  335  that the board determines will efficiently recover such
  336  deficits. The purpose of the lines of credit or other financing
  337  mechanisms is to provide additional resources to assist the
  338  corporation in covering claims and expenses attributable to a
  339  catastrophe. As used in this subsection, the term “assessments”
  340  includes emergency regular assessments under sub-subparagraph c.
  341  a. or subparagraph (q)1. and emergency assessments under sub
  342  subparagraph e. Emergency assessments collected under sub
  343  subparagraph c. e. are not part of an insurer’s rates, are not
  344  premium, and are not subject to premium tax, fees, or
  345  commissions; however, failure to pay the emergency assessment
  346  shall be treated as failure to pay premium. The emergency
  347  assessments shall continue as long as any bonds issued or other
  348  indebtedness incurred with respect to a deficit for which the
  349  assessment was imposed remain outstanding, unless adequate
  350  provision has been made for the payment of such bonds or other
  351  indebtedness pursuant to the documents governing such bonds or
  352  indebtedness.
  353         e.g. As used in this subsection and for purposes of any
  354  deficit incurred on or after January 25, 2007, the term “subject
  355  lines of business” means insurance written by assessable
  356  insurers or procured by assessable insureds for all property and
  357  casualty lines of business in this state, but not including
  358  workers’ compensation or medical malpractice. As used in this
  359  sub-subparagraph, the term “property and casualty lines of
  360  business” includes all lines of business identified on Form 2,
  361  Exhibit of Premiums and Losses, in the annual statement required
  362  of authorized insurers under s. 624.424 and any rule adopted
  363  under this section, except for those lines identified as
  364  accident and health insurance and except for policies written
  365  under the National Flood Insurance Program or the Federal Crop
  366  Insurance Program. For purposes of this sub-subparagraph, the
  367  term “workers’ compensation” includes both workers’ compensation
  368  insurance and excess workers’ compensation insurance.
  369         f.h. The Florida Surplus Lines Service Office shall
  370  annually determine annually the aggregate statewide written
  371  premium in subject lines of business procured by assessable
  372  insureds and report that information to the corporation in a
  373  form and at a time the corporation specifies to ensure that the
  374  corporation can meet the requirements of this subsection and the
  375  corporation’s financing obligations.
  376         g.i. The Florida Surplus Lines Service Office shall verify
  377  the proper application by surplus lines agents of assessment
  378  percentages for regular assessments and emergency assessments
  379  levied under this subparagraph on assessable insureds and assist
  380  the corporation in ensuring the accurate, timely collection and
  381  payment of assessments by surplus lines agents as required by
  382  the corporation.
  383         j. Upon determination by the board of governors that an
  384  account has a projected deficit, the board shall levy a Citizens
  385  policyholder surcharge against all policyholders of the
  386  corporation.
  387         (I) The surcharge shall be levied as a uniform percentage
  388  of the premium for the policy of up to 15 percent of such
  389  premium, which funds shall be used to offset the deficit.
  390         (II) The surcharge is payable upon cancellation or
  391  termination of the policy, upon renewal of the policy, or upon
  392  issuance of a new policy by the corporation within the first 12
  393  months after the date of the levy or the period of time
  394  necessary to fully collect the surcharge amount.
  395         (III) The corporation may not levy any regular assessments
  396  under paragraph (q) pursuant to sub-subparagraph a. or sub
  397  subparagraph b. with respect to a particular year’s deficit
  398  until the corporation has first levied the full amount of the
  399  surcharge authorized by this sub-subparagraph.
  400         (IV) The surcharge is not considered premium and is not
  401  subject to commissions, fees, or premium taxes. However, failure
  402  to pay the surcharge shall be treated as failure to pay premium.
  403         h.k. If the amount of any assessments or surcharges
  404  collected from corporation policyholders, assessable insurers or
  405  their policyholders, or assessable insureds exceeds the amount
  406  of the deficits, such excess amounts shall be remitted to and
  407  retained by the corporation in a reserve to be used by the
  408  corporation, as determined by the board of governors and
  409  approved by the office, to pay claims or reduce any past,
  410  present, or future plan-year deficits or to reduce outstanding
  411  debt.
  412         4.The Citizens account, if established by the corporation
  413  pursuant to sub-subparagraph 2.b., is authorized to provide:
  414         a. Personal residential policies that provide
  415  comprehensive, multiperil coverage on risks that are not located
  416  in areas eligible for coverage by the Florida Windstorm
  417  Underwriting Association, as those areas were defined on January
  418  1, 2002, and for policies that do not provide coverage for the
  419  peril of wind on risks that are located in such areas;
  420         b. Commercial residential and commercial nonresidential
  421  policies that provide coverage for basic property perils on
  422  risks that are not located in areas eligible for coverage by the
  423  Florida Windstorm Underwriting Association, as those areas were
  424  defined on January 1, 2002, and for policies that do not provide
  425  coverage for the peril of wind on risks that are located in such
  426  areas; and
  427         c. Personal residential policies and commercial residential
  428  and commercial nonresidential property policies that provide
  429  coverage for the peril of wind on risks that are located in
  430  areas eligible for coverage by the Florida Windstorm
  431  Underwriting Association, as those areas were defined on January
  432  1, 2002. The corporation may offer policies that provide
  433  multiperil coverage and shall offer policies that provide
  434  coverage only for the peril of wind for risks located in areas
  435  eligible for coverage by the Florida Windstorm Underwriting
  436  Association, as those areas were defined on January 1, 2002. The
  437  corporation may not offer new commercial residential policies
  438  providing multiperil coverage, but shall continue to offer
  439  commercial residential wind-only policies, and may offer
  440  commercial residential policies excluding wind. However, the
  441  corporation may continue to renew a commercial residential
  442  multiperil policy on a building that was insured by the
  443  corporation on June 30, 2014, under a multiperil policy. In
  444  issuing multiperil coverage under this sub-subparagraph, the
  445  corporation may use its approved policy forms and rates for
  446  risks located in areas not eligible for coverage by the Florida
  447  Windstorm Underwriting Association as those areas were defined
  448  on January 1, 2002, and for policies that do not provide
  449  coverage for the peril of wind on risks that are located in such
  450  areas. An applicant or insured who is eligible to purchase a
  451  multiperil policy from the corporation may purchase a multiperil
  452  policy from an authorized insurer without prejudice to the
  453  applicant’s or insured’s eligibility to prospectively purchase a
  454  policy that provides coverage only for the peril of wind from
  455  the corporation. An applicant or insured who is eligible for a
  456  corporation policy that provides coverage only for the peril of
  457  wind may elect to purchase or retain such policy and also
  458  purchase or retain coverage excluding wind from an authorized
  459  insurer without prejudice to the applicant’s or insured’s
  460  eligibility to prospectively purchase a policy that provides
  461  multiperil coverage from the corporation. The following
  462  policies, which provide coverage only for the peril of wind,
  463  must also include quota share primary insurance under
  464  subparagraph (c)2.: Personal residential policies and commercial
  465  residential and commercial nonresidential property policies that
  466  provide coverage for the peril of wind on risks that are located
  467  in areas eligible for coverage by the Florida Windstorm
  468  Underwriting Association, as those areas were defined on January
  469  1, 2002; policies that provide multiperil coverage, if offered
  470  by the corporation, and policies that provide coverage only for
  471  the peril of wind for risks located in areas eligible for
  472  coverage by the Florida Windstorm Underwriting Association, as
  473  those areas were defined on January 1, 2002; commercial
  474  residential wind-only policies; commercial residential policies
  475  excluding wind, if offered by the corporation; and commercial
  476  residential multiperil policies on a building that was insured
  477  by the corporation on June 30, 2014. The area eligible for
  478  coverage with the corporation under this sub-subparagraph
  479  includes the area within Port Canaveral, which is bordered on
  480  the south by the City of Cape Canaveral, bordered on the west by
  481  the Banana River, and bordered on the north by Federal
  482  Government property.
  483         5. With respect to a deficit in the Citizens account:
  484         a. Upon a determination by the board of governors that the
  485  Citizens account has a projected deficit, the board shall levy a
  486  Citizens policyholder surcharge against all policyholders of the
  487  corporation.
  488         (I) The surcharge shall be levied as a uniform percentage
  489  of the premium for the policy of up to 15 percent of such
  490  premium, which funds shall be used to offset the deficit.
  491         (II) The surcharge is payable upon cancellation or
  492  termination of the policy, upon renewal of the policy, or upon
  493  issuance of a new policy by the corporation within the first 12
  494  months after the date of the levy or the period of time
  495  necessary to fully collect the surcharge amount.
  496         (III) The surcharge is not considered premium and is not
  497  subject to commissions, fees, or premium taxes. However, failure
  498  to pay the surcharge shall be treated as failure to pay premium.
  499         b. After accounting for the Citizens policyholder surcharge
  500  imposed under sub-subparagraph a., the remaining projected
  501  deficit incurred in the Citizens account in a particular
  502  calendar year shall be recovered through emergency assessments
  503  under sub-subparagraph c.
  504         c. Upon a determination by the board of governors that a
  505  projected deficit in the Citizens account exceeds the amount
  506  that is expected to be recovered through surcharges under sub
  507  subparagraph a., the board, after verification by the office,
  508  shall levy emergency assessments for as many years as necessary
  509  to cover the deficits, to be collected by assessable insurers
  510  and the corporation and collected from assessable insureds upon
  511  issuance or renewal of policies for subject lines of business,
  512  excluding National Flood Insurance Program policies. The amount
  513  collected in a particular year must be a uniform percentage of
  514  that year’s direct written premium for subject lines of business
  515  and the Citizens account, National Flood Insurance Program
  516  policy premiums, as annually determined by the board and
  517  verified by the office. The office shall verify the arithmetic
  518  calculations involved in the board’s determination within 30
  519  days after receipt of the information on which the determination
  520  was based. The office shall notify assessable insurers and the
  521  Florida Surplus Lines Service Office of the date on which
  522  assessable insurers shall begin to collect and assessable
  523  insureds shall begin to pay such assessment. The date must be at
  524  least 90 days after the date the corporation levies emergency
  525  assessments pursuant to this sub-subparagraph. Notwithstanding
  526  any other law, the corporation and each assessable insurer that
  527  writes subject lines of business shall collect emergency
  528  assessments from its policyholders without such obligation being
  529  affected by any credit, limitation, exemption, or deferment.
  530  Emergency assessments levied by the corporation on assessable
  531  insureds shall be collected by the surplus lines agent at the
  532  time the surplus lines agent collects the surplus lines tax
  533  required by s. 626.932 and paid to the Florida Surplus Lines
  534  Service Office at the time the surplus lines agent pays the
  535  surplus lines tax to that office. The emergency assessments
  536  collected shall be transferred directly to the corporation on a
  537  periodic basis as determined by the corporation and held by the
  538  corporation solely in the Citizens account. The aggregate amount
  539  of emergency assessments levied for the Citizens account in any
  540  calendar year may be less than, but may not exceed the greater
  541  of, 10 percent of the amount needed to cover the deficit, plus
  542  interest, fees, commissions, required reserves, and other costs
  543  associated with financing the original deficit or 10 percent of
  544  the aggregate statewide direct written premium for subject lines
  545  of business and the Citizens accounts for the prior year, plus
  546  interest, fees, commissions, required reserves, and other costs
  547  associated with financing the deficit.
  548         d. The corporation may pledge the proceeds of assessments,
  549  projected recoveries from the Florida Hurricane Catastrophe
  550  Fund, other insurance and reinsurance recoverables, policyholder
  551  surcharges and other surcharges, and other funds available to
  552  the corporation as the source of revenue for and to secure bonds
  553  issued under paragraph (q), bonds or other indebtedness issued
  554  under subparagraph (c)3., or lines of credit or other financing
  555  mechanisms issued or created under this subsection; or to retire
  556  any other debt incurred as a result of deficits or events giving
  557  rise to deficits, or in any other way that the board determines
  558  will efficiently recover such deficits. The purpose of the lines
  559  of credit or other financing mechanisms is to provide additional
  560  resources to assist the corporation in covering claims and
  561  expenses attributable to a catastrophe. As used in this
  562  subsection, the term “assessments” includes emergency
  563  assessments under sub-subparagraph c. Emergency assessments
  564  collected under sub-subparagraph c. are not part of an insurer’s
  565  rates, are not premium, and are not subject to premium tax,
  566  fees, or commissions; however, failure to pay the emergency
  567  assessment shall be treated as failure to pay premium. The
  568  emergency assessments shall continue as long as any bonds issued
  569  or other indebtedness incurred with respect to a deficit for
  570  which the assessment was imposed remain outstanding, unless
  571  adequate provision has been made for the payment of such bonds
  572  or other indebtedness pursuant to the documents governing such
  573  bonds or indebtedness.
  574         e. As used in this subsection and for purposes of any
  575  deficit incurred on or after January 25, 2007, the term “subject
  576  lines of business” means insurance written by assessable
  577  insurers or procured by assessable insureds for all property and
  578  casualty lines of business in this state, but not including
  579  workers’ compensation or medical malpractice. As used in this
  580  sub-subparagraph, the term “property and casualty lines of
  581  business” includes all lines of business identified on Form 2,
  582  Exhibit of Premiums and Losses, in the annual statement required
  583  of authorized insurers under s. 624.424 and any rule adopted
  584  under this section, except for those lines identified as
  585  accident and health insurance and except for policies written
  586  under the National Flood Insurance Program or the Federal Crop
  587  Insurance Program. For purposes of this sub-subparagraph, the
  588  term “workers’ compensation” includes both workers’ compensation
  589  insurance and excess workers’ compensation insurance.
  590         f. The Florida Surplus Lines Service Office shall annually
  591  determine the aggregate statewide written premium in subject
  592  lines of business procured by assessable insureds and report
  593  that information to the corporation in a form and at a time the
  594  corporation specifies to ensure that the corporation can meet
  595  the requirements of this subsection and the corporation’s
  596  financing obligations.
  597         g. The Florida Surplus Lines Service Office shall verify
  598  the proper application by surplus lines agents of assessment
  599  percentages for emergency assessments levied under this
  600  subparagraph on assessable insureds and assist the corporation
  601  in ensuring the accurate, timely collection and payment of
  602  assessments by surplus lines agents as required by the
  603  corporation.
  604         h. If the amount of any assessments or surcharges collected
  605  from corporation policyholders, assessable insurers or their
  606  policyholders, or assessable insureds exceeds the amount of the
  607  deficits, such excess amounts shall be remitted to and retained
  608  by the corporation in a reserve to be used by the corporation,
  609  as determined by the board of governors and approved by the
  610  office, to pay claims or reduce any past, present, or future
  611  plan-year deficits or to reduce outstanding debt.
  612         (c) The corporation’s plan of operation:
  613         1. Must provide for adoption of residential property and
  614  casualty insurance policy forms and commercial residential and
  615  nonresidential property insurance forms, which must be approved
  616  by the office before use. The corporation shall adopt the
  617  following policy forms:
  618         a. Standard personal lines policy forms that are
  619  comprehensive multiperil policies providing full coverage of a
  620  residential property equivalent to the coverage provided in the
  621  private insurance market under an HO-3, HO-4, or HO-6 policy.
  622         b. Basic personal lines policy forms that are policies
  623  similar to an HO-8 policy or a dwelling fire policy that provide
  624  coverage meeting the requirements of the secondary mortgage
  625  market, but which is more limited than the coverage under a
  626  standard policy.
  627         c. Commercial lines residential and nonresidential policy
  628  forms that are generally similar to the basic perils of full
  629  coverage obtainable for commercial residential structures and
  630  commercial nonresidential structures in the admitted voluntary
  631  market.
  632         d. Personal lines and commercial lines residential property
  633  insurance forms that cover the peril of wind only. The forms are
  634  applicable only to residential properties located in areas
  635  eligible for coverage by the Florida Windstorm Underwriting
  636  Association, as those areas were defined on January 1, 2002.
  637         e. Commercial lines nonresidential property insurance forms
  638  that cover the peril of wind only. The forms are applicable only
  639  to nonresidential properties located in areas eligible for
  640  coverage by the Florida Windstorm Underwriting Association, as
  641  those areas were defined on January 1, 2002.
  642         f. The corporation may adopt variations of the policy forms
  643  listed in sub-subparagraphs a.-e. which contain more restrictive
  644  coverage.
  645         g. The corporation shall offer a basic personal lines
  646  policy similar to an HO-8 policy with dwelling repair based on
  647  common construction materials and methods.
  648         2. Must provide that the corporation adopt a program in
  649  which the corporation and authorized insurers enter into quota
  650  share primary insurance agreements for hurricane coverage, as
  651  defined in s. 627.4025(2)(a), for eligible risks, and adopt
  652  property insurance forms for eligible risks which cover the
  653  peril of wind only.
  654         a. As used in this subsection, the term:
  655         (I)“Approved surplus lines insurer means an eligible
  656  surplus lines insurer that:
  657         (A)Has a financial strength rating of “A-” or higher from
  658  A.M. Best Company;
  659         (B)Has a personal lines residential risk program that is
  660  managed by a Florida resident surplus lines broker;
  661         (C)Applies to the office to participate in the take-out
  662  process to offer coverage to applicants for new coverage from
  663  the corporation or current policyholders of the corporation
  664  through a take-out plan approved by the office;
  665         (D)Files rates for review as part of a take-out plan with
  666  the office. The office shall review whether the premium is more
  667  than 20 percent greater than the premium for comparable coverage
  668  from the corporation; and
  669         (E)Provides data to the office related to coverage and
  670  rates in a format promulgated by the commission.
  671         (III)“Primary residence” means the dwelling that is the
  672  policyholder’s primary home or is a rental property that is the
  673  primary home of the tenant, and which the policyholder or tenant
  674  occupies for more than 9 months of each year.
  675         (IV)(I) “Quota share primary insurance” means an
  676  arrangement in which the primary hurricane coverage of an
  677  eligible risk is provided in specified percentages by the
  678  corporation and an authorized insurer. The corporation and
  679  authorized insurer are each solely responsible for a specified
  680  percentage of hurricane coverage of an eligible risk as set
  681  forth in a quota share primary insurance agreement between the
  682  corporation and an authorized insurer and the insurance
  683  contract. The responsibility of the corporation or authorized
  684  insurer to pay its specified percentage of hurricane losses of
  685  an eligible risk, as set forth in the agreement, may not be
  686  altered by the inability of the other party to pay its specified
  687  percentage of losses. Eligible risks that are provided hurricane
  688  coverage through a quota share primary insurance arrangement
  689  must be provided policy forms that set forth the obligations of
  690  the corporation and authorized insurer under the arrangement,
  691  clearly specify the percentages of quota share primary insurance
  692  provided by the corporation and authorized insurer, and
  693  conspicuously and clearly state that the authorized insurer and
  694  the corporation may not be held responsible beyond their
  695  specified percentage of coverage of hurricane losses.
  696         (II) “Eligible risks” means personal lines residential and
  697  commercial lines residential risks that meet the underwriting
  698  criteria of the corporation and are located in areas that were
  699  eligible for coverage by the Florida Windstorm Underwriting
  700  Association on January 1, 2002.
  701         b. The corporation may enter into quota share primary
  702  insurance agreements with authorized insurers at corporation
  703  coverage levels of 90 percent and 50 percent.
  704         c. If the corporation determines that additional coverage
  705  levels are necessary to maximize participation in quota share
  706  primary insurance agreements by authorized insurers, the
  707  corporation may establish additional coverage levels. However,
  708  the corporation’s quota share primary insurance coverage level
  709  may not exceed 90 percent.
  710         d. Any quota share primary insurance agreement entered into
  711  between an authorized insurer and the corporation must provide
  712  for a uniform specified percentage of coverage of hurricane
  713  losses, by county or territory as set forth by the corporation
  714  board, for all eligible risks of the authorized insurer covered
  715  under the agreement.
  716         e. Any quota share primary insurance agreement entered into
  717  between an authorized insurer and the corporation is subject to
  718  review and approval by the office. However, such agreement shall
  719  be authorized only as to insurance contracts entered into
  720  between an authorized insurer and an insured who is already
  721  insured by the corporation for wind coverage.
  722         f. For all eligible risks covered under quota share primary
  723  insurance agreements, the exposure and coverage levels for both
  724  the corporation and authorized insurers shall be reported by the
  725  corporation to the Florida Hurricane Catastrophe Fund. For all
  726  policies of eligible risks covered under such agreements, the
  727  corporation and the authorized insurer must maintain complete
  728  and accurate records for the purpose of exposure and loss
  729  reimbursement audits as required by fund rules. The corporation
  730  and the authorized insurer shall each maintain duplicate copies
  731  of policy declaration pages and supporting claims documents.
  732         g. The corporation board shall establish in its plan of
  733  operation standards for quota share agreements which ensure that
  734  there is no discriminatory application among insurers as to the
  735  terms of the agreements, pricing of the agreements, incentive
  736  provisions if any, and consideration paid for servicing policies
  737  or adjusting claims.
  738         h. The quota share primary insurance agreement between the
  739  corporation and an authorized insurer must set forth the
  740  specific terms under which coverage is provided, including, but
  741  not limited to, the sale and servicing of policies issued under
  742  the agreement by the insurance agent of the authorized insurer
  743  producing the business, the reporting of information concerning
  744  eligible risks, the payment of premium to the corporation, and
  745  arrangements for the adjustment and payment of hurricane claims
  746  incurred on eligible risks by the claims adjuster and personnel
  747  of the authorized insurer. Entering into a quota sharing
  748  insurance agreement between the corporation and an authorized
  749  insurer is voluntary and at the discretion of the authorized
  750  insurer.
  751         3. May provide that the corporation may employ or otherwise
  752  contract with individuals or other entities to provide
  753  administrative or professional services that may be appropriate
  754  to effectuate the plan. The corporation may borrow funds by
  755  issuing bonds or by incurring other indebtedness, and shall have
  756  other powers reasonably necessary to effectuate the requirements
  757  of this subsection, including, without limitation, the power to
  758  issue bonds and incur other indebtedness in order to refinance
  759  outstanding bonds or other indebtedness. The corporation may
  760  seek judicial validation of its bonds or other indebtedness
  761  under chapter 75. The corporation may issue bonds or incur other
  762  indebtedness, or have bonds issued on its behalf by a unit of
  763  local government pursuant to subparagraph (q)2. in the absence
  764  of a hurricane or other weather-related event, upon a
  765  determination by the corporation, subject to approval by the
  766  office, that such action would enable it to efficiently meet the
  767  financial obligations of the corporation and that such
  768  financings are reasonably necessary to effectuate the
  769  requirements of this subsection. The corporation may take all
  770  actions needed to facilitate tax-free status for such bonds or
  771  indebtedness, including formation of trusts or other affiliated
  772  entities. The corporation may pledge assessments, projected
  773  recoveries from the Florida Hurricane Catastrophe Fund, other
  774  reinsurance recoverables, policyholder surcharges and other
  775  surcharges, and other funds available to the corporation as
  776  security for bonds or other indebtedness. In recognition of s.
  777  10, Art. I of the State Constitution, prohibiting the impairment
  778  of obligations of contracts, it is the intent of the Legislature
  779  that no action be taken whose purpose is to impair any bond
  780  indenture or financing agreement or any revenue source committed
  781  by contract to such bond or other indebtedness.
  782         4. Must require that the corporation operate subject to the
  783  supervision and approval of a board of governors consisting of
  784  nine individuals who are residents of this state and who are
  785  from different geographical areas of the state, one of whom is
  786  appointed by the Governor and serves solely to advocate on
  787  behalf of the consumer. The appointment of a consumer
  788  representative by the Governor is deemed to be within the scope
  789  of the exemption provided in s. 112.313(7)(b) and is in addition
  790  to the appointments authorized under sub-subparagraph a.
  791         a. The Governor, the Chief Financial Officer, the President
  792  of the Senate, and the Speaker of the House of Representatives
  793  shall each appoint two members of the board. At least one of the
  794  two members appointed by each appointing officer must have
  795  demonstrated expertise in insurance and be deemed to be within
  796  the scope of the exemption provided in s. 112.313(7)(b). The
  797  Chief Financial Officer shall designate one of the appointees as
  798  chair. All board members serve at the pleasure of the appointing
  799  officer. All members of the board are subject to removal at will
  800  by the officers who appointed them. All board members, including
  801  the chair, must be appointed to serve for 3-year terms beginning
  802  annually on a date designated by the plan. However, for the
  803  first term beginning on or after July 1, 2009, each appointing
  804  officer shall appoint one member of the board for a 2-year term
  805  and one member for a 3-year term. A board vacancy shall be
  806  filled for the unexpired term by the appointing officer. The
  807  Chief Financial Officer shall appoint a technical advisory group
  808  to provide information and advice to the board in connection
  809  with the board’s duties under this subsection. The executive
  810  director and senior managers of the corporation shall be engaged
  811  by the board and serve at the pleasure of the board. Any
  812  executive director appointed on or after July 1, 2006, is
  813  subject to confirmation by the Senate. The executive director is
  814  responsible for employing other staff as the corporation may
  815  require, subject to review and concurrence by the board.
  816         b. The board shall create a Market Accountability Advisory
  817  Committee to assist the corporation in developing awareness of
  818  its rates and its customer and agent service levels in
  819  relationship to the voluntary market insurers writing similar
  820  coverage.
  821         (I) The members of the advisory committee consist of the
  822  following 11 persons, one of whom must be elected chair by the
  823  members of the committee: four representatives, one appointed by
  824  the Florida Association of Insurance Agents, one by the Florida
  825  Association of Insurance and Financial Advisors, one by the
  826  Professional Insurance Agents of Florida, and one by the Latin
  827  American Association of Insurance Agencies; three
  828  representatives appointed by the insurers with the three highest
  829  voluntary market share of residential property insurance
  830  business in the state; one representative from the Office of
  831  Insurance Regulation; one consumer appointed by the board who is
  832  insured by the corporation at the time of appointment to the
  833  committee; one representative appointed by the Florida
  834  Association of Realtors; and one representative appointed by the
  835  Florida Bankers Association. All members shall be appointed to
  836  3-year terms and may serve for consecutive terms.
  837         (II) The committee shall report to the corporation at each
  838  board meeting on insurance market issues which may include rates
  839  and rate competition with the voluntary market; service,
  840  including policy issuance, claims processing, and general
  841  responsiveness to policyholders, applicants, and agents; and
  842  matters relating to depopulation.
  843         5. Must provide a procedure for determining the eligibility
  844  of a risk for coverage, as follows:
  845         a. Subject to s. 627.3517, with respect to personal lines
  846  residential risks that are primary residences, if the risk is
  847  offered coverage from an authorized insurer at the insurer’s
  848  approved rate under a standard policy including wind coverage
  849  or, if consistent with the insurer’s underwriting rules as filed
  850  with the office, a basic policy including wind coverage, for a
  851  new application to the corporation for coverage, the risk is not
  852  eligible for any policy issued by the corporation unless the
  853  premium for coverage from the authorized insurer is more than 20
  854  percent greater than the premium for comparable coverage from
  855  the corporation. Whenever an offer of coverage for a personal
  856  lines residential risk that is a primary residence is received
  857  for a policyholder of the corporation at renewal from an
  858  authorized insurer, if the offer is equal to or less than the
  859  corporation’s renewal premium for comparable coverage, the risk
  860  is not eligible for coverage with the corporation for policies
  861  that renew before April 1, 2023; for policies that renew on or
  862  after that date, the risk is not eligible for coverage with the
  863  corporation unless the premium for coverage from the authorized
  864  insurer is more than 20 percent greater than the corporation’s
  865  renewal premium for comparable coverage. If the risk is not able
  866  to obtain such offer, the risk is eligible for a standard policy
  867  including wind coverage or a basic policy including wind
  868  coverage issued by the corporation; however, if the risk could
  869  not be insured under a standard policy including wind coverage
  870  regardless of market conditions, the risk is eligible for a
  871  basic policy including wind coverage unless rejected under
  872  subparagraph 8. The corporation shall determine the type of
  873  policy to be provided on the basis of objective standards
  874  specified in the underwriting manual and based on generally
  875  accepted underwriting practices. A policyholder removed from the
  876  corporation through an assumption agreement does not remain
  877  eligible for coverage from the corporation after the end of the
  878  policy term. However, any policy removed from the corporation
  879  through an assumption agreement remains on the corporation’s
  880  policy forms through the end of the policy term. This sub
  881  subparagraph applies only to risks that are primary residences.
  882         (I) If the risk accepts an offer of coverage through the
  883  market assistance plan or through a mechanism established by the
  884  corporation other than a plan established by s. 627.3518, before
  885  a policy is issued to the risk by the corporation or during the
  886  first 30 days of coverage by the corporation, and the producing
  887  agent who submitted the application to the plan or to the
  888  corporation is not currently appointed by the insurer, the
  889  insurer shall:
  890         (A) Pay to the producing agent of record of the policy for
  891  the first year, an amount that is the greater of the insurer’s
  892  usual and customary commission for the type of policy written or
  893  a fee equal to the usual and customary commission of the
  894  corporation; or
  895         (B) Offer to allow the producing agent of record of the
  896  policy to continue servicing the policy for at least 1 year and
  897  offer to pay the agent the greater of the insurer’s or the
  898  corporation’s usual and customary commission for the type of
  899  policy written.
  900  
  901  If the producing agent is unwilling or unable to accept
  902  appointment, the new insurer shall pay the agent in accordance
  903  with sub-sub-sub-subparagraph (A).
  904         (II) If the corporation enters into a contractual agreement
  905  for a take-out plan, the producing agent of record of the
  906  corporation policy is entitled to retain any unearned commission
  907  on the policy, and the insurer shall:
  908         (A) Pay to the producing agent of record, for the first
  909  year, an amount that is the greater of the insurer’s usual and
  910  customary commission for the type of policy written or a fee
  911  equal to the usual and customary commission of the corporation;
  912  or
  913         (B) Offer to allow the producing agent of record to
  914  continue servicing the policy for at least 1 year and offer to
  915  pay the agent the greater of the insurer’s or the corporation’s
  916  usual and customary commission for the type of policy written.
  917  
  918  If the producing agent is unwilling or unable to accept
  919  appointment, the new insurer shall pay the agent in accordance
  920  with sub-sub-sub-subparagraph (A).
  921         b. Subject to s. 627.3517, with respect to personal lines
  922  residential risks that are not primary residences, if the risk
  923  is offered coverage from an authorized insurer at the insurer’s
  924  approved rate or from an approved surplus lines insurer at the
  925  rate approved by the office as part of such surplus lines
  926  insurer’s take-out plan for a new application to the corporation
  927  for coverage, the risk is not eligible for any policy issued by
  928  the corporation unless the premium for coverage from the
  929  authorized insurer or approved surplus lines insurer is more
  930  than 20 percent greater than the premium for comparable coverage
  931  from the corporation. Whenever an offer of coverage for a
  932  personal lines residential risk that is not a primary residence
  933  is received for a policyholder of the corporation at renewal
  934  from an authorized insurer at the insurer’s approved rate or an
  935  approved surplus lines insurer at the rate approved by the
  936  office as part of such insurer’s take-out plan, the risk is not
  937  eligible for coverage with the corporation unless the premium
  938  for coverage from the authorized insurer or approved surplus
  939  lines insurer is more than 20 percent greater than the
  940  corporation’s renewal premium for comparable coverage for
  941  policies that renew on or after July 1, 2024. If the risk is not
  942  able to obtain such offer, the risk is eligible for a standard
  943  policy including wind coverage or a basic policy including wind
  944  coverage issued by the corporation. If the risk could not be
  945  insured under a standard policy including wind coverage
  946  regardless of market conditions, the risk is eligible for a
  947  basic policy including wind coverage unless rejected under
  948  subparagraph 8. The corporation shall determine the type of
  949  policy to be provided on the basis of objective standards
  950  specified in the underwriting manual and based on generally
  951  accepted underwriting practices. A policyholder removed from the
  952  corporation through an assumption agreement does not remain
  953  eligible for coverage from the corporation after the end of the
  954  policy term. However, any policy removed from the corporation
  955  through an assumption agreement remains on the corporation’s
  956  policy forms through the end of the policy term.
  957         (I) If the risk accepts an offer of coverage through the
  958  market assistance plan or through a mechanism established by the
  959  corporation other than a plan established by s. 627.3518, before
  960  a policy is issued to the risk by the corporation or during the
  961  first 30 days of coverage by the corporation, and the producing
  962  agent who submitted the application to the plan or to the
  963  corporation is not currently appointed by the insurer, the
  964  insurer must:
  965         (A) Pay to the producing agent of record of the policy, for
  966  the first year, an amount that is the greater of the insurer’s
  967  usual and customary commission for the type of policy written or
  968  a fee equal to the usual and customary commission of the
  969  corporation; or
  970         (B) Offer to allow the producing agent of record of the
  971  policy to continue servicing the policy for at least 1 year and
  972  offer to pay the agent the greater of the insurer’s or the
  973  corporation’s usual and customary commission for the type of
  974  policy written.
  975  
  976  If the producing agent is unwilling or unable to accept
  977  appointment, the new insurer must pay the agent in accordance
  978  with sub-sub-sub-subparagraph (A).
  979         (II) If the corporation enters into a contractual agreement
  980  for a take-out plan, the producing agent of record of the
  981  corporation policy is entitled to retain any unearned commission
  982  on the policy, and the insurer must:
  983         (A) Pay to the producing agent of record, for the first
  984  year, an amount that is the greater of the insurer’s usual and
  985  customary commission for the type of policy written or a fee
  986  equal to the usual and customary commission of the corporation;
  987  or
  988         (B) Offer to allow the producing agent of record to
  989  continue servicing the policy for at least 1 year and offer to
  990  pay the agent the greater of the insurer’s or the corporation’s
  991  usual and customary commission for the type of policy written.
  992  
  993  If the producing agent is unwilling or unable to accept
  994  appointment, the new insurer shall pay the agent in accordance
  995  with sub-sub-sub-subparagraph (A).
  996         c.b. With respect to commercial lines residential risks,
  997  for a new application to the corporation for coverage, if the
  998  risk is offered coverage under a policy including wind coverage
  999  from an authorized insurer at its approved rate, the risk is not
 1000  eligible for a policy issued by the corporation unless the
 1001  premium for coverage from the authorized insurer is more than 20
 1002  percent greater than the premium for comparable coverage from
 1003  the corporation. Whenever an offer of coverage for a commercial
 1004  lines residential risk is received for a policyholder of the
 1005  corporation at renewal from an authorized insurer, the risk is
 1006  not eligible for coverage with the corporation unless the
 1007  premium for coverage from the authorized insurer is more than 20
 1008  percent greater than the corporation’s renewal premium for
 1009  comparable coverage. If the risk is not able to obtain any such
 1010  offer, the risk is eligible for a policy including wind coverage
 1011  issued by the corporation. A policyholder removed from the
 1012  corporation through an assumption agreement remains eligible for
 1013  coverage from the corporation until the end of the policy term.
 1014  However, any policy removed from the corporation through an
 1015  assumption agreement remains on the corporation’s policy forms
 1016  through the end of the policy term.
 1017         (I) If the risk accepts an offer of coverage through the
 1018  market assistance plan or through a mechanism established by the
 1019  corporation other than a plan established by s. 627.3518, before
 1020  a policy is issued to the risk by the corporation or during the
 1021  first 30 days of coverage by the corporation, and the producing
 1022  agent who submitted the application to the plan or the
 1023  corporation is not currently appointed by the insurer, the
 1024  insurer shall:
 1025         (A) Pay to the producing agent of record of the policy, for
 1026  the first year, an amount that is the greater of the insurer’s
 1027  usual and customary commission for the type of policy written or
 1028  a fee equal to the usual and customary commission of the
 1029  corporation; or
 1030         (B) Offer to allow the producing agent of record of the
 1031  policy to continue servicing the policy for at least 1 year and
 1032  offer to pay the agent the greater of the insurer’s or the
 1033  corporation’s usual and customary commission for the type of
 1034  policy written.
 1035  
 1036  If the producing agent is unwilling or unable to accept
 1037  appointment, the new insurer shall pay the agent in accordance
 1038  with sub-sub-sub-subparagraph (A).
 1039         (II) If the corporation enters into a contractual agreement
 1040  for a take-out plan, the producing agent of record of the
 1041  corporation policy is entitled to retain any unearned commission
 1042  on the policy, and the insurer shall:
 1043         (A) Pay to the producing agent of record, for the first
 1044  year, an amount that is the greater of the insurer’s usual and
 1045  customary commission for the type of policy written or a fee
 1046  equal to the usual and customary commission of the corporation;
 1047  or
 1048         (B) Offer to allow the producing agent of record to
 1049  continue servicing the policy for at least 1 year and offer to
 1050  pay the agent the greater of the insurer’s or the corporation’s
 1051  usual and customary commission for the type of policy written.
 1052  
 1053  If the producing agent is unwilling or unable to accept
 1054  appointment, the new insurer shall pay the agent in accordance
 1055  with sub-sub-sub-subparagraph (A).
 1056         d.c. For purposes of determining comparable coverage under
 1057  sub-subparagraphs a., and b., and c., the comparison must be
 1058  based on those forms and coverages that are reasonably
 1059  comparable. The corporation may rely on a determination of
 1060  comparable coverage and premium made by the producing agent who
 1061  submits the application to the corporation, made in the agent’s
 1062  capacity as the corporation’s agent. For purposes of comparing
 1063  the premium for comparable coverage under sub-subparagraphs a.,
 1064  and b., and c. premium includes any surcharge or assessment that
 1065  is actually applied to such policy. A comparison may be made
 1066  solely of the premium with respect to the main building or
 1067  structure only on the following basis: the same Coverage A or
 1068  other building limits; the same percentage hurricane deductible
 1069  that applies on an annual basis or that applies to each
 1070  hurricane for commercial residential property; the same
 1071  percentage of ordinance and law coverage, if the same limit is
 1072  offered by both the corporation and the authorized insurer or
 1073  the approved surplus line insurer; the same mitigation credits,
 1074  to the extent the same types of credits are offered both by the
 1075  corporation and the authorized insurer or the approved surplus
 1076  lines insurer; the same method for loss payment, such as
 1077  replacement cost or actual cash value, if the same method is
 1078  offered both by the corporation and the authorized insurer in
 1079  accordance with underwriting rules; and any other form or
 1080  coverage that is reasonably comparable as determined by the
 1081  board. If an application is submitted to the corporation for
 1082  wind-only coverage on a risk that is located in an area eligible
 1083  for coverage by the Florida Windstorm Underwriting Association,
 1084  as that area was defined on January 1, 2002, the premium for the
 1085  corporation’s wind-only policy plus the premium for the ex-wind
 1086  policy that is offered by an authorized insurer to the applicant
 1087  must be compared to the premium for multiperil coverage offered
 1088  by an authorized insurer, subject to the standards for
 1089  comparison specified in this subparagraph. If the corporation or
 1090  the applicant requests from the authorized insurer or the
 1091  approved surplus lines insurer a breakdown of the premium of the
 1092  offer by types of coverage so that a comparison may be made by
 1093  the corporation or its agent and the authorized insurer or the
 1094  approved surplus lines insurer refuses or is unable to provide
 1095  such information, the corporation may treat the offer as not
 1096  being an offer of coverage from an authorized insurer at the
 1097  insurer’s approved rate.
 1098         6. Must include rules for classifications of risks and
 1099  rates.
 1100         7. Must provide that if premium and investment income:
 1101         a. for the Citizens an account, which are attributable to a
 1102  particular calendar year, are in excess of projected losses and
 1103  expenses for the Citizens account attributable to that year,
 1104  such excess shall be held in surplus in the Citizens account.
 1105  Such surplus must be available to defray deficits in the
 1106  Citizens that account as to future years and used for that
 1107  purpose before assessing assessable insurers and assessable
 1108  insureds as to any calendar year; or
 1109         b.For the Citizens account, if established by the
 1110  corporation, which are attributable to a particular calendar
 1111  year are in excess of projected losses and expenses for the
 1112  Citizens account attributable to that year, such excess shall be
 1113  held in surplus in the Citizens account. Such surplus must be
 1114  available to defray deficits in the Citizens account as to
 1115  future years and used for that purpose before assessing
 1116  assessable insurers and assessable insureds as to any calendar
 1117  year.
 1118         8. Must provide objective criteria and procedures to be
 1119  uniformly applied to all applicants in determining whether an
 1120  individual risk is so hazardous as to be uninsurable. In making
 1121  this determination and in establishing the criteria and
 1122  procedures, the following must be considered:
 1123         a. Whether the likelihood of a loss for the individual risk
 1124  is substantially higher than for other risks of the same class;
 1125  and
 1126         b. Whether the uncertainty associated with the individual
 1127  risk is such that an appropriate premium cannot be determined.
 1128  
 1129  The acceptance or rejection of a risk by the corporation shall
 1130  be construed as the private placement of insurance, and the
 1131  provisions of chapter 120 do not apply.
 1132         9. Must provide that the corporation make its best efforts
 1133  to procure catastrophe reinsurance at reasonable rates, to cover
 1134  its projected 100-year probable maximum loss as determined by
 1135  the board of governors. If catastrophe reinsurance is not
 1136  available at reasonable rates, the corporation need not purchase
 1137  it, but the corporation shall include the costs of reinsurance
 1138  to cover its projected 100-year probable maximum loss in its
 1139  rate calculations even if it does not purchase catastrophe
 1140  reinsurance.
 1141         10. The policies issued by the corporation must provide
 1142  that if the corporation or the market assistance plan obtains an
 1143  offer from an authorized insurer to cover the risk at its
 1144  approved rates, the risk is no longer eligible for renewal
 1145  through the corporation, except as otherwise provided in this
 1146  subsection.
 1147         11. Corporation policies and applications must include a
 1148  notice that the corporation policy could, under this section, be
 1149  replaced with a policy issued by an authorized insurer which
 1150  does not provide coverage identical to the coverage provided by
 1151  the corporation. The notice must also specify that acceptance of
 1152  corporation coverage creates a conclusive presumption that the
 1153  applicant or policyholder is aware of this potential.
 1154         12. May establish, subject to approval by the office,
 1155  different eligibility requirements and operational procedures
 1156  for any line or type of coverage for any specified county or
 1157  area if the board determines that such changes are justified due
 1158  to the voluntary market being sufficiently stable and
 1159  competitive in such area or for such line or type of coverage
 1160  and that consumers who, in good faith, are unable to obtain
 1161  insurance through the voluntary market through ordinary methods
 1162  continue to have access to coverage from the corporation. If
 1163  coverage is sought in connection with a real property transfer,
 1164  the requirements and procedures may not provide an effective
 1165  date of coverage later than the date of the closing of the
 1166  transfer as established by the transferor, the transferee, and,
 1167  if applicable, the lender.
 1168         13. Must provide that:
 1169         a. With respect to the coastal account, any assessable
 1170  insurer with a surplus as to policyholders of $25 million or
 1171  less writing 25 percent or more of its total countrywide
 1172  property insurance premiums in this state may petition the
 1173  office, within the first 90 days of each calendar year, to
 1174  qualify as a limited apportionment company. A regular assessment
 1175  levied by the corporation on a limited apportionment company for
 1176  a deficit incurred by the corporation for the coastal account
 1177  may be paid to the corporation on a monthly basis as the
 1178  assessments are collected by the limited apportionment company
 1179  from its insureds, but a limited apportionment company must
 1180  begin collecting the regular assessments not later than 90 days
 1181  after the regular assessments are levied by the corporation, and
 1182  the regular assessments must be paid in full within 15 months
 1183  after being levied by the corporation. A limited apportionment
 1184  company shall collect from its policyholders any emergency
 1185  assessment imposed under sub-subparagraph (b)3.e. The plan must
 1186  provide that, if the office determines that any regular
 1187  assessment will result in an impairment of the surplus of a
 1188  limited apportionment company, the office may direct that all or
 1189  part of such assessment be deferred as provided in subparagraph
 1190  (q)4. However, an emergency assessment to be collected from
 1191  policyholders under sub-subparagraph (b)3.e. may not be limited
 1192  or deferred; or
 1193         b. With respect to the Citizens account, if established by
 1194  the corporation pursuant to sub-subparagraph (b)2.b., any
 1195  assessable insurer with a surplus as to policyholders of $25
 1196  million or less and writing 25 percent or more of its total
 1197  countrywide property insurance premiums in this state may
 1198  petition the office, within the first 90 days of each calendar
 1199  year, to qualify as a limited apportionment company. A limited
 1200  apportionment company shall collect from its policyholders any
 1201  emergency assessment imposed under sub-subparagraph (b)5.c. An
 1202  emergency assessment to be collected from policyholders under
 1203  sub-subparagraph (b)5.c. may not be limited or deferred.
 1204         14. Must provide that the corporation appoint as its
 1205  licensed agents only those agents who throughout such
 1206  appointments also hold an appointment as defined in s. 626.015
 1207  by at least three insurers an insurer who are is authorized to
 1208  write and are is actually writing or renewing personal lines
 1209  residential property coverage, commercial residential property
 1210  coverage, or commercial nonresidential property coverage within
 1211  the state.
 1212         14.15. Must provide a premium payment plan option to its
 1213  policyholders which, at a minimum, allows for quarterly and
 1214  semiannual payment of premiums. A monthly payment plan may, but
 1215  is not required to, be offered.
 1216         15.16. Must limit coverage on mobile homes or manufactured
 1217  homes built before 1994 to actual cash value of the dwelling
 1218  rather than replacement costs of the dwelling.
 1219         16.17. Must provide coverage for manufactured or mobile
 1220  home dwellings. Such coverage must also include the following
 1221  attached structures:
 1222         a. Screened enclosures that are aluminum framed or screened
 1223  enclosures that are not covered by the same or substantially the
 1224  same materials as those of the primary dwelling;
 1225         b. Carports that are aluminum or carports that are not
 1226  covered by the same or substantially the same materials as those
 1227  of the primary dwelling; and
 1228         c. Patios that have a roof covering that is constructed of
 1229  materials that are not the same or substantially the same
 1230  materials as those of the primary dwelling.
 1231  
 1232  The corporation shall make available a policy for mobile homes
 1233  or manufactured homes for a minimum insured value of at least
 1234  $3,000.
 1235         17.18. May provide such limits of coverage as the board
 1236  determines, consistent with the requirements of this subsection.
 1237         18.19. May require commercial property to meet specified
 1238  hurricane mitigation construction features as a condition of
 1239  eligibility for coverage.
 1240         19.20. Must provide that new or renewal policies issued by
 1241  the corporation on or after January 1, 2012, which cover
 1242  sinkhole loss do not include coverage for any loss to
 1243  appurtenant structures, driveways, sidewalks, decks, or patios
 1244  that are directly or indirectly caused by sinkhole activity. The
 1245  corporation shall exclude such coverage using a notice of
 1246  coverage change, which may be included with the policy renewal,
 1247  and not by issuance of a notice of nonrenewal of the excluded
 1248  coverage upon renewal of the current policy.
 1249         20.a.21.a.As of January 1, 2012, unless the Citizens
 1250  account has been established pursuant to sub-subparagraph
 1251  (b)2.b., Must require that the agent obtain from an applicant
 1252  for coverage from the corporation an acknowledgment signed by
 1253  the applicant, which includes, at a minimum, the following
 1254  statement:
 1255  
 1256                ACKNOWLEDGMENT OF POTENTIAL SURCHARGE              
 1257                      AND ASSESSMENT LIABILITY:                    
 1258  
 1259         1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
 1260  CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
 1261  DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
 1262  MY POLICY COULD BE SUBJECT TO SURCHARGES AND ASSESSMENTS, WHICH
 1263  WILL BE DUE AND PAYABLE UPON RENEWAL, CANCELLATION, OR
 1264  TERMINATION OF THE POLICY, AND THAT THE SURCHARGES AND
 1265  ASSESSMENTS COULD BE AS HIGH AS 25 45 PERCENT OF MY PREMIUM, OR
 1266  A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA LEGISLATURE.
 1267         2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
 1268  SURCHARGE, WHICH COULD BE AS HIGH AS 15 45 PERCENT OF MY
 1269  PREMIUM, BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND
 1270  THAT TO BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY
 1271  TO OBTAIN PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR
 1272  RENEWING COVERAGE WITH CITIZENS. I UNDERSTAND THAT PRIVATE
 1273  MARKET INSURANCE RATES ARE REGULATED AND APPROVED BY THE STATE.
 1274         3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
 1275  ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
 1276  INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
 1277  FLORIDA LEGISLATURE.
 1278         4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
 1279  CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
 1280  STATE OF FLORIDA.
 1281  
 1282         b.The corporation must require, if it has established the
 1283  Citizens account pursuant to sub-subparagraph (b)2.b., that the
 1284  agent obtain from an applicant for coverage from the corporation
 1285  the following acknowledgment signed by the applicant, which
 1286  includes, at a minimum, the following statement:
 1287  
 1288                ACKNOWLEDGMENT OF POTENTIAL SURCHARGE              
 1289                      AND ASSESSMENT LIABILITY:                    
 1290  
 1291         1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
 1292  CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
 1293  DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
 1294  MY POLICY COULD BE SUBJECT TO SURCHARGES AND ASSESSMENTS, WHICH
 1295  WILL BE DUE AND PAYABLE UPON RENEWAL, CANCELLATION, OR
 1296  TERMINATION OF THE POLICY, AND THAT THE SURCHARGES AND
 1297  ASSESSMENTS COULD BE AS HIGH AS 25 PERCENT OF MY PREMIUM, OR A
 1298  DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA LEGISLATURE.
 1299         2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
 1300  SURCHARGE, WHICH COULD BE AS HIGH AS 15 PERCENT OF MY PREMIUM,
 1301  BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND THAT TO
 1302  BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN
 1303  PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR RENEWING COVERAGE
 1304  WITH CITIZENS. I UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES
 1305  ARE REGULATED AND APPROVED BY THE STATE.
 1306         3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
 1307  ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
 1308  INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
 1309  FLORIDA LEGISLATURE.
 1310         4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
 1311  CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
 1312  STATE OF FLORIDA.
 1313  
 1314         b.c. The corporation shall maintain, in electronic format
 1315  or otherwise, a copy of the applicant’s signed acknowledgment
 1316  and provide a copy of the statement to the policyholder as part
 1317  of the first renewal after the effective date of sub
 1318  subparagraph a. or sub-subparagraph b., as applicable.
 1319         c.d. The signed acknowledgment form creates a conclusive
 1320  presumption that the policyholder understood and accepted his or
 1321  her potential surcharge and assessment liability as a
 1322  policyholder of the corporation.
 1323         (e) The corporation is subject to s. 287.057 for the
 1324  purchase of commodities and contractual services except as
 1325  otherwise provided in this paragraph. Services provided by
 1326  tradepersons or technical experts to assist a licensed adjuster
 1327  in the evaluation of individual claims are not subject to the
 1328  procurement requirements of this section. Additionally, the
 1329  procurement of financial services providers and underwriters
 1330  must be made pursuant to s. 627.3513. Contracts for goods or
 1331  services valued at or more than $100,000 are subject to approval
 1332  by the board.
 1333         1. The corporation is an agency for purposes of s. 287.057,
 1334  except that, for purposes of s. 287.057(24), the corporation is
 1335  an eligible user.
 1336         a. The authority of the Department of Management Services
 1337  and the Chief Financial Officer under s. 287.057 extends to the
 1338  corporation as if the corporation were an agency.
 1339         b. The executive director of the corporation is the agency
 1340  head under s. 287.057, except for resolution of bid protests for
 1341  which the board would serve as the agency head. The executive
 1342  director of the corporation may assign or appoint a designee to
 1343  act on his or her behalf.
 1344         2. The corporation must provide notice of a decision or
 1345  intended decision concerning a solicitation, contract award, or
 1346  exceptional purchase by electronic posting. Such notice must
 1347  contain the following statement: “Failure to file a protest
 1348  within the time prescribed in this section constitutes a waiver
 1349  of proceedings.”
 1350         a. A person adversely affected by the corporation’s
 1351  decision or intended decision to award a contract pursuant to s.
 1352  287.057(1) or (3)(c) who elects to challenge the decision must
 1353  file a written notice of protest with the executive director of
 1354  the corporation within 72 hours after the corporation posts a
 1355  notice of its decision or intended decision. For a protest of
 1356  the terms, conditions, and specifications contained in a
 1357  solicitation, including provisions governing the methods for
 1358  ranking bids, proposals, replies, awarding contracts, reserving
 1359  rights of further negotiation, or modifying or amending any
 1360  contract, the notice of protest must be filed in writing within
 1361  72 hours after posting the solicitation. Saturdays, Sundays, and
 1362  state holidays are excluded in the computation of the 72-hour
 1363  time period.
 1364         b. A formal written protest must be filed within 10 days
 1365  after the date the notice of protest is filed. The formal
 1366  written protest must state with particularity the facts and law
 1367  upon which the protest is based. Upon receipt of a formal
 1368  written protest that has been timely filed, the corporation must
 1369  stop the solicitation or contract award process until the
 1370  subject of the protest is resolved by final board action unless
 1371  the executive director sets forth in writing particular facts
 1372  and circumstances that require the continuance of the
 1373  solicitation or contract award process without delay in order to
 1374  avoid an immediate and serious danger to the public health,
 1375  safety, or welfare.
 1376         (I) The corporation must provide an opportunity to resolve
 1377  the protest by mutual agreement between the parties within 7
 1378  business days after receipt of the formal written protest.
 1379         (II) If the subject of a protest is not resolved by mutual
 1380  agreement within 7 business days, the corporation’s board must
 1381  transmit the protest to the Division of Administrative Hearings
 1382  and contract with the division to conduct a hearing to determine
 1383  the merits of the protest and to issue a recommended order. The
 1384  contract must provide for the corporation to reimburse the
 1385  division for any costs incurred by the division for court
 1386  reporters, transcript preparation, travel, facility rental, and
 1387  other customary hearing costs in the manner set forth in s.
 1388  120.65(9). The division has jurisdiction to determine the facts
 1389  and law concerning the protest and to issue a recommended order.
 1390  The division’s rules and procedures apply to these proceedings;
 1391  the division’s applicable bond requirements do not apply. The
 1392  protest must be heard by the division at a publicly noticed
 1393  meeting in accordance with procedures established by the
 1394  division.
 1395         c. In a protest of an invitation-to-bid or request-for
 1396  proposals procurement, submissions made after the bid or
 1397  proposal opening which amend or supplement the bid or proposal
 1398  may not be considered. In protesting an invitation-to-negotiate
 1399  procurement, submissions made after the corporation announces
 1400  its intent to award a contract, reject all replies, or withdraw
 1401  the solicitation that amends or supplements the reply may not be
 1402  considered. Unless otherwise provided by law, the burden of
 1403  proof rests with the party protesting the corporation’s action.
 1404  In a competitive-procurement protest, other than a rejection of
 1405  all bids, proposals, or replies, the administrative law judge
 1406  must conduct a de novo proceeding to determine whether the
 1407  corporation’s proposed action is contrary to the corporation’s
 1408  governing statutes, the corporation’s rules or policies, or the
 1409  solicitation specifications. The standard of proof for the
 1410  proceeding is whether the corporation’s action was clearly
 1411  erroneous, contrary to competition, arbitrary, or capricious. In
 1412  any bid-protest proceeding contesting an intended corporation
 1413  action to reject all bids, proposals, or replies, the standard
 1414  of review by the board is whether the corporation’s intended
 1415  action is illegal, arbitrary, dishonest, or fraudulent.
 1416         d. Failure to file a notice of protest or failure to file a
 1417  formal written protest constitutes a waiver of proceedings.
 1418         3. The board, acting as agency head or his or her designee,
 1419  shall consider the recommended order of an administrative law
 1420  judge in a public meeting and take final action on the protest.
 1421  Any further legal remedy lies with the First District Court of
 1422  Appeal.
 1423         (n)1. Rates for coverage provided by the corporation must
 1424  be actuarially sound pursuant to s. 627.062 and not competitive
 1425  with approved rates charged in the admitted voluntary market so
 1426  that the corporation functions as a residual market mechanism to
 1427  provide insurance only when insurance cannot be procured in the
 1428  voluntary market, except as otherwise provided in this
 1429  paragraph. The office shall provide the corporation such
 1430  information as would be necessary to determine whether rates are
 1431  competitive.
 1432  
 1433  The corporation shall file its recommended rates with the office
 1434  at least annually. The corporation shall provide any additional
 1435  information regarding the rates which the office requires. The
 1436  office shall consider the recommendations of the board and issue
 1437  a final order establishing the rates for the corporation within
 1438  45 days after the recommended rates are filed. The corporation
 1439  may not pursue an administrative challenge or judicial review of
 1440  the final order of the office.
 1441         2. In addition to the rates otherwise determined pursuant
 1442  to this paragraph, the corporation shall impose and collect an
 1443  amount equal to the premium tax provided in s. 624.509 to
 1444  augment the financial resources of the corporation.
 1445         3. After the public hurricane loss-projection model under
 1446  s. 627.06281 has been found to be accurate and reliable by the
 1447  Florida Commission on Hurricane Loss Projection Methodology, the
 1448  model shall be considered when establishing the windstorm
 1449  portion of the corporation’s rates. The corporation may use the
 1450  public model results in combination with the results of private
 1451  models to calculate rates for the windstorm portion of the
 1452  corporation’s rates. This subparagraph does not require or allow
 1453  the corporation to adopt rates lower than the rates otherwise
 1454  required or allowed by this paragraph.
 1455         4. The corporation must make a recommended actuarially
 1456  sound rate filing for each personal and commercial line of
 1457  business it writes.
 1458         5. Notwithstanding the board’s recommended rates and the
 1459  office’s final order regarding the corporation’s filed rates
 1460  under subparagraph 1., the corporation shall annually implement
 1461  a rate increase which, except for sinkhole coverage, does not
 1462  exceed the following for any single policy issued by the
 1463  corporation, excluding coverage changes and surcharges:
 1464         a. Twelve percent for 2023.
 1465         b. Thirteen percent for 2024.
 1466         b.c. Fourteen percent for 2025.
 1467         c.d. Fifteen percent for 2026 and all subsequent years.
 1468         6. The corporation may also implement an increase to
 1469  reflect the effect on the corporation of the cash buildup factor
 1470  pursuant to s. 215.555(5)(b).
 1471         7. The corporation’s implementation of rates as prescribed
 1472  in subparagraphs 5. and 8. shall cease for any line of business
 1473  written by the corporation upon the corporation’s implementation
 1474  of actuarially sound rates. Thereafter, the corporation shall
 1475  annually make a recommended actuarially sound rate filing that
 1476  is not competitive with approved rates in the admitted voluntary
 1477  market for each commercial and personal line of business the
 1478  corporation writes.
 1479         8. The following new or renewal personal lines policies
 1480  written on or after November 1, 2023, are not subject to the
 1481  rate increase limitations in subparagraph 5., but may not be
 1482  charged more than 50 percent above, and may not be charged nor
 1483  less than, the prior year’s established rate for the
 1484  corporation:
 1485         a. Policies that do not cover a primary residence;
 1486         b. New policies under which the coverage for the insured
 1487  risk, before the date of application with the corporation, was
 1488  last provided by an insurer determined by the office to be
 1489  unsound or an insurer placed in receivership under chapter 631;
 1490         c. Policies made eligible for coverage from the corporation
 1491  pursuant to sub-subparagraph (a)3.c.; or
 1492         d.c. Subsequent renewals of those policies, including the
 1493  new policies in sub-subparagraph b., under which the coverage
 1494  for the insured risk, before the date of application with the
 1495  corporation, was last provided by an insurer determined by the
 1496  office to be unsound or an insurer placed in receivership under
 1497  chapter 631.
 1498         9. As used in this paragraph, the term “primary residence”
 1499  means the dwelling that is the policyholder’s primary home or is
 1500  a rental property that is the primary home of the tenant, and
 1501  which the policyholder or tenant occupies for more than 9 months
 1502  of each year.
 1503         (o) If coverage in an account, or the Citizens account if
 1504  established by the corporation, is deactivated pursuant to
 1505  paragraph (p), coverage through the corporation shall be
 1506  reactivated by order of the office only under one of the
 1507  following circumstances:
 1508         1. If the market assistance plan receives a minimum of 100
 1509  applications for coverage within a 3-month period, or 200
 1510  applications for coverage within a 1-year period or less for
 1511  residential coverage, unless the market assistance plan provides
 1512  a quotation from authorized admitted carriers at their approved
 1513  filed rates for at least 90 percent of such applicants. Any
 1514  market assistance plan application that is rejected because an
 1515  individual risk is so hazardous as to be uninsurable using the
 1516  criteria specified in subparagraph (c)8. may shall not be
 1517  included in the minimum percentage calculation provided herein.
 1518  In the event that there is a legal or administrative challenge
 1519  to a determination by the office that the conditions of this
 1520  subparagraph have been met for eligibility for coverage in the
 1521  corporation, any eligible risk may obtain coverage during the
 1522  pendency of such challenge.
 1523         2. In response to a state of emergency declared by the
 1524  Governor under s. 252.36, the office may activate coverage by
 1525  order for the period of the emergency upon a finding by the
 1526  office that the emergency significantly affects the availability
 1527  of residential property insurance.
 1528         (p)1. The corporation shall file with the office quarterly
 1529  statements of financial condition, an annual statement of
 1530  financial condition, and audited financial statements in the
 1531  manner prescribed by law. In addition, the corporation shall
 1532  report to the office monthly on the types, premium, exposure,
 1533  and distribution by county of its policies in force, and shall
 1534  submit other reports as the office requires to carry out its
 1535  oversight of the corporation.
 1536         2. The activities of the corporation shall be reviewed at
 1537  least annually by the office to determine whether coverage shall
 1538  be deactivated in an account, or in the Citizens account if
 1539  established by the corporation, on the basis that the conditions
 1540  giving rise to its activation no longer exist.
 1541         (q)1. The corporation shall certify to the office its needs
 1542  for annual assessments as to a particular calendar year, and for
 1543  any interim assessments that it deems to be necessary to sustain
 1544  operations as to a particular year pending the receipt of annual
 1545  assessments. Upon verification, the office shall approve such
 1546  certification, and the corporation shall levy such annual or
 1547  interim assessments. Such assessments shall be prorated, if
 1548  authority to levy exists, as provided in paragraph (b). The
 1549  corporation shall take all reasonable and prudent steps
 1550  necessary to collect the amount of assessments due from each
 1551  assessable insurer, including, if prudent, filing suit to
 1552  collect the assessments, and the office may provide such
 1553  assistance to the corporation it deems appropriate. If the
 1554  corporation is unable to collect an assessment from any
 1555  assessable insurer, the uncollected assessments shall be levied
 1556  as an additional assessment against the assessable insurers and
 1557  any assessable insurer required to pay an additional assessment
 1558  as a result of such failure to pay shall have a cause of action
 1559  against such nonpaying assessable insurer. Assessments shall be
 1560  included as an appropriate factor in the making of rates. The
 1561  failure of a surplus lines agent to collect and remit any
 1562  regular or emergency assessment levied by the corporation is
 1563  considered to be a violation of s. 626.936 and subjects the
 1564  surplus lines agent to the penalties provided in that section.
 1565         2. The governing body of any unit of local government, any
 1566  residents of which are insured by the corporation, may issue
 1567  bonds as defined in s. 125.013 or s. 166.101 from time to time
 1568  to fund an assistance program, in conjunction with the
 1569  corporation, for the purpose of defraying deficits of the
 1570  corporation. In order to avoid needless and indiscriminate
 1571  proliferation, duplication, and fragmentation of such assistance
 1572  programs, any unit of local government, any residents of which
 1573  are insured by the corporation, may provide for the payment of
 1574  losses, regardless of whether or not the losses occurred within
 1575  or outside of the territorial jurisdiction of the local
 1576  government. Revenue bonds under this subparagraph may not be
 1577  issued until validated pursuant to chapter 75, unless a state of
 1578  emergency is declared by executive order or proclamation of the
 1579  Governor pursuant to s. 252.36 making such findings as are
 1580  necessary to determine that it is in the best interests of, and
 1581  necessary for, the protection of the public health, safety, and
 1582  general welfare of residents of this state and declaring it an
 1583  essential public purpose to permit certain municipalities or
 1584  counties to issue such bonds as will permit relief to claimants
 1585  and policyholders of the corporation. Any such unit of local
 1586  government may enter into such contracts with the corporation
 1587  and with any other entity created pursuant to this subsection as
 1588  are necessary to carry out this paragraph. Any bonds issued
 1589  under this subparagraph shall be payable from and secured by
 1590  moneys received by the corporation from emergency assessments
 1591  under sub-subparagraph (b)3.c. (b)3.e., and assigned and pledged
 1592  to or on behalf of the unit of local government for the benefit
 1593  of the holders of such bonds. The funds, credit, property, and
 1594  taxing power of the state or of the unit of local government may
 1595  shall not be pledged for the payment of such bonds.
 1596         3.a. The corporation shall adopt one or more programs
 1597  subject to approval by the office for the reduction of both new
 1598  and renewal writings in the corporation. Beginning January 1,
 1599  2008, any program the corporation adopts for the payment of
 1600  bonuses to an insurer for each risk the insurer removes from the
 1601  corporation shall comply with s. 627.3511(2) and may not exceed
 1602  the amount referenced in s. 627.3511(2) for each risk removed.
 1603  The corporation may consider any prudent and not unfairly
 1604  discriminatory approach to reducing corporation writings, and
 1605  may adopt a credit against assessment liability or other
 1606  liability that provides an incentive for insurers to take risks
 1607  out of the corporation and to keep risks out of the corporation
 1608  by maintaining or increasing voluntary writings in counties or
 1609  areas in which corporation risks are highly concentrated and a
 1610  program to provide a formula under which an insurer voluntarily
 1611  taking risks out of the corporation by maintaining or increasing
 1612  voluntary writings will be relieved wholly or partially from
 1613  assessments under sub-subparagraph (b)3.a. However, any “take
 1614  out bonus” or payment to an insurer must be conditioned on the
 1615  property being insured for at least 5 years by the insurer,
 1616  unless canceled or nonrenewed by the policyholder. If the policy
 1617  is canceled or nonrenewed by the policyholder before the end of
 1618  the 5-year period, the amount of the take-out bonus must be
 1619  prorated for the time period the policy was insured. When the
 1620  corporation enters into a contractual agreement for a take-out
 1621  plan, the producing agent of record of the corporation policy is
 1622  entitled to retain any unearned commission on such policy, and
 1623  the insurer shall either:
 1624         (I) Pay to the producing agent of record of the policy, for
 1625  the first year, an amount which is the greater of the insurer’s
 1626  usual and customary commission for the type of policy written or
 1627  a policy fee equal to the usual and customary commission of the
 1628  corporation; or
 1629         (II) Offer to allow the producing agent of record of the
 1630  policy to continue servicing the policy for a period of not less
 1631  than 1 year and offer to pay the agent the insurer’s usual and
 1632  customary commission for the type of policy written. If the
 1633  producing agent is unwilling or unable to accept appointment by
 1634  the new insurer, the new insurer shall pay the agent in
 1635  accordance with sub-sub-subparagraph (I).
 1636         b. Any credit or exemption from regular assessments adopted
 1637  under this subparagraph shall last no longer than the 3 years
 1638  following the cancellation or expiration of the policy by the
 1639  corporation. With the approval of the office, the board may
 1640  extend such credits for an additional year if the insurer
 1641  guarantees an additional year of renewability for all policies
 1642  removed from the corporation, or for 2 additional years if the
 1643  insurer guarantees 2 additional years of renewability for all
 1644  policies so removed.
 1645         c. There shall be no credit, limitation, exemption, or
 1646  deferment from emergency assessments to be collected from
 1647  policyholders pursuant to sub-subparagraph (b)3.c. sub
 1648  subparagraph (b)3.e. or sub-subparagraph (b)5.c.
 1649         4. The plan shall provide for the deferment, in whole or in
 1650  part, of the assessment of an assessable insurer, other than an
 1651  emergency assessment collected from policyholders pursuant to
 1652  sub-subparagraph (b)3.e. or sub-subparagraph (b)5.c., if the
 1653  office finds that payment of the assessment would endanger or
 1654  impair the solvency of the insurer. In the event an assessment
 1655  against an assessable insurer is deferred in whole or in part,
 1656  the amount by which such assessment is deferred may be assessed
 1657  against the other assessable insurers in a manner consistent
 1658  with the basis for assessments set forth in paragraph (b).
 1659         5. Effective July 1, 2007, in order to evaluate the costs
 1660  and benefits of approved take-out plans, if the corporation pays
 1661  a bonus or other payment to an insurer for an approved take-out
 1662  plan, it shall maintain a record of the address or such other
 1663  identifying information on the property or risk removed in order
 1664  to track if and when the property or risk is later insured by
 1665  the corporation.
 1666         5.6. Any policy taken out, assumed, or removed from the
 1667  corporation is, as of the effective date of the take-out,
 1668  assumption, or removal, direct insurance issued by the insurer
 1669  and not by the corporation, even if the corporation continues to
 1670  service the policies. This subparagraph applies to policies of
 1671  the corporation and not policies taken out, assumed, or removed
 1672  from any other entity.
 1673         6.7. For a policy taken out, assumed, or removed from the
 1674  corporation, the insurer may, for a period of no more than 3
 1675  years, continue to use any of the corporation’s policy forms or
 1676  endorsements that apply to the policy taken out, removed, or
 1677  assumed without obtaining approval from the office for use of
 1678  such policy form or endorsement.
 1679         (v)1. Effective July 1, 2002, policies of the Residential
 1680  Property and Casualty Joint Underwriting Association become
 1681  policies of the corporation. All obligations, rights, assets and
 1682  liabilities of the association, including bonds, note and debt
 1683  obligations, and the financing documents pertaining to them
 1684  become those of the corporation as of July 1, 2002. The
 1685  corporation is not required to issue endorsements or
 1686  certificates of assumption to insureds during the remaining term
 1687  of in-force transferred policies.
 1688         2. Effective July 1, 2002, policies of the Florida
 1689  Windstorm Underwriting Association are transferred to the
 1690  corporation and become policies of the corporation. All
 1691  obligations, rights, assets, and liabilities of the association,
 1692  including bonds, note and debt obligations, and the financing
 1693  documents pertaining to them are transferred to and assumed by
 1694  the corporation on July 1, 2002. The corporation is not required
 1695  to issue endorsements or certificates of assumption to insureds
 1696  during the remaining term of in-force transferred policies.
 1697         3. The Florida Windstorm Underwriting Association and the
 1698  Residential Property and Casualty Joint Underwriting Association
 1699  shall take all actions necessary to further evidence the
 1700  transfers and provide the documents and instruments of further
 1701  assurance as may reasonably be requested by the corporation for
 1702  that purpose. The corporation shall execute assumptions and
 1703  instruments as the trustees or other parties to the financing
 1704  documents of the Florida Windstorm Underwriting Association or
 1705  the Residential Property and Casualty Joint Underwriting
 1706  Association may reasonably request to further evidence the
 1707  transfers and assumptions, which transfers and assumptions,
 1708  however, are effective on the date provided under this paragraph
 1709  whether or not, and regardless of the date on which, the
 1710  assumptions or instruments are executed by the corporation.
 1711  Subject to the relevant financing documents pertaining to their
 1712  outstanding bonds, notes, indebtedness, or other financing
 1713  obligations, the moneys, investments, receivables, choses in
 1714  action, and other intangibles of the Florida Windstorm
 1715  Underwriting Association shall be credited to the coastal
 1716  account of the corporation, and those of the personal lines
 1717  residential coverage account and the commercial lines
 1718  residential coverage account of the Residential Property and
 1719  Casualty Joint Underwriting Association shall be credited to the
 1720  personal lines account and the commercial lines account,
 1721  respectively, of the corporation.
 1722         4. Effective July 1, 2002, a new applicant for property
 1723  insurance coverage who would otherwise have been eligible for
 1724  coverage in the Florida Windstorm Underwriting Association is
 1725  eligible for coverage from the corporation as provided in this
 1726  subsection.
 1727         5. The transfer of all policies, obligations, rights,
 1728  assets, and liabilities from the Florida Windstorm Underwriting
 1729  Association to the corporation and the renaming of the
 1730  Residential Property and Casualty Joint Underwriting Association
 1731  as the corporation does not affect the coverage with respect to
 1732  covered policies as defined in s. 215.555(2)(c) provided to
 1733  these entities by the Florida Hurricane Catastrophe Fund. The
 1734  coverage provided by the fund to the Florida Windstorm
 1735  Underwriting Association based on its exposures as of June 30,
 1736  2002, and each June 30 thereafter, unless the corporation has
 1737  established the Citizens account, shall be redesignated as
 1738  coverage for the coastal account of the corporation.
 1739  Notwithstanding any other provision of law, the coverage
 1740  provided by the fund to the Residential Property and Casualty
 1741  Joint Underwriting Association based on its exposures as of June
 1742  30, 2002, and each June 30 thereafter, unless the corporation
 1743  has established the Citizens account, shall be transferred to
 1744  the personal lines account and the commercial lines account of
 1745  the corporation. Notwithstanding any other provision of law, the
 1746  coastal account, unless the corporation has established the
 1747  Citizens account, shall be treated, for all Florida Hurricane
 1748  Catastrophe Fund purposes, as if it were a separate
 1749  participating insurer with its own exposures, reimbursement
 1750  premium, and loss reimbursement. Likewise, the personal lines
 1751  and commercial lines accounts, unless the corporation has
 1752  established the Citizens account, shall be viewed together, for
 1753  all fund purposes, as if the two accounts were one and represent
 1754  a single, separate participating insurer with its own exposures,
 1755  reimbursement premium, and loss reimbursement. The coverage
 1756  provided by the fund to the corporation shall constitute and
 1757  operate as a full transfer of coverage from the Florida
 1758  Windstorm Underwriting Association and Residential Property and
 1759  Casualty Joint Underwriting Association to the corporation.
 1760         (w) Notwithstanding any other provision of law:
 1761         1. The pledge or sale of, the lien upon, and the security
 1762  interest in any rights, revenues, or other assets of the
 1763  corporation created or purported to be created pursuant to any
 1764  financing documents to secure any bonds or other indebtedness of
 1765  the corporation shall be and remain valid and enforceable,
 1766  notwithstanding the commencement of and during the continuation
 1767  of, and after, any rehabilitation, insolvency, liquidation,
 1768  bankruptcy, receivership, conservatorship, reorganization, or
 1769  similar proceeding against the corporation under the laws of
 1770  this state.
 1771         2. The proceeding does not relieve the corporation of its
 1772  obligation, or otherwise affect its ability to perform its
 1773  obligation, to continue to collect, or levy and collect,
 1774  assessments, policyholder surcharges or other surcharges under
 1775  sub-subparagraph (b)3.j., or any other rights, revenues, or
 1776  other assets of the corporation pledged pursuant to any
 1777  financing documents.
 1778         3. Each such pledge or sale of, lien upon, and security
 1779  interest in, including the priority of such pledge, lien, or
 1780  security interest, any such assessments, policyholder surcharges
 1781  or other surcharges, or other rights, revenues, or other assets
 1782  which are collected, or levied and collected, after the
 1783  commencement of and during the pendency of, or after, any such
 1784  proceeding shall continue unaffected by such proceeding. As used
 1785  in this subsection, the term “financing documents” means any
 1786  agreement or agreements, instrument or instruments, or other
 1787  document or documents now existing or hereafter created
 1788  evidencing any bonds or other indebtedness of the corporation or
 1789  pursuant to which any such bonds or other indebtedness has been
 1790  or may be issued and pursuant to which any rights, revenues, or
 1791  other assets of the corporation are pledged or sold to secure
 1792  the repayment of such bonds or indebtedness, together with the
 1793  payment of interest on such bonds or such indebtedness, or the
 1794  payment of any other obligation or financial product, as defined
 1795  in the plan of operation of the corporation related to such
 1796  bonds or indebtedness.
 1797         4. Any such pledge or sale of assessments, revenues,
 1798  contract rights, or other rights or assets of the corporation
 1799  shall constitute a lien and security interest, or sale, as the
 1800  case may be, that is immediately effective and attaches to such
 1801  assessments, revenues, or contract rights or other rights or
 1802  assets, whether or not imposed or collected at the time the
 1803  pledge or sale is made. Any such pledge or sale is effective,
 1804  valid, binding, and enforceable against the corporation or other
 1805  entity making such pledge or sale, and valid and binding against
 1806  and superior to any competing claims or obligations owed to any
 1807  other person or entity, including policyholders in this state,
 1808  asserting rights in any such assessments, revenues, or contract
 1809  rights or other rights or assets to the extent set forth in and
 1810  in accordance with the terms of the pledge or sale contained in
 1811  the applicable financing documents, whether or not any such
 1812  person or entity has notice of such pledge or sale and without
 1813  the need for any physical delivery, recordation, filing, or
 1814  other action.
 1815         5. As long as the corporation has any bonds outstanding,
 1816  the corporation may not file a voluntary petition under chapter
 1817  9 of the federal Bankruptcy Code or such corresponding chapter
 1818  or sections as may be in effect, from time to time, and a public
 1819  officer or any organization, entity, or other person may not
 1820  authorize the corporation to be or become a debtor under chapter
 1821  9 of the federal Bankruptcy Code or such corresponding chapter
 1822  or sections as may be in effect, from time to time, during any
 1823  such period.
 1824         6. If ordered by a court of competent jurisdiction, the
 1825  corporation may assume policies or otherwise provide coverage
 1826  for policyholders of an insurer placed in liquidation under
 1827  chapter 631, under such forms, rates, terms, and conditions as
 1828  the corporation deems appropriate, subject to approval by the
 1829  office.
 1830         (x)1. The following records of the corporation are
 1831  confidential and exempt from the provisions of s. 119.07(1) and
 1832  s. 24(a), Art. I of the State Constitution:
 1833         a. Underwriting files, except that a policyholder or an
 1834  applicant shall have access to his or her own underwriting
 1835  files. Confidential and exempt underwriting file records may
 1836  also be released to other governmental agencies upon written
 1837  request and demonstration of need; such records held by the
 1838  receiving agency remain confidential and exempt as provided
 1839  herein.
 1840         b. Claims files, until termination of all litigation and
 1841  settlement of all claims arising out of the same incident,
 1842  although portions of the claims files may remain exempt, as
 1843  otherwise provided by law. Confidential and exempt claims file
 1844  records may be released to other governmental agencies upon
 1845  written request and demonstration of need; such records held by
 1846  the receiving agency remain confidential and exempt as provided
 1847  herein.
 1848         c. Records obtained or generated by an internal auditor
 1849  pursuant to a routine audit, until the audit is completed, or if
 1850  the audit is conducted as part of an investigation, until the
 1851  investigation is closed or ceases to be active. An investigation
 1852  is considered “active” while the investigation is being
 1853  conducted with a reasonable, good faith belief that it could
 1854  lead to the filing of administrative, civil, or criminal
 1855  proceedings.
 1856         d. Matters reasonably encompassed in privileged attorney
 1857  client communications.
 1858         e. Proprietary information licensed to the corporation
 1859  under contract and the contract provides for the confidentiality
 1860  of such proprietary information.
 1861         f. All information relating to the medical condition or
 1862  medical status of a corporation employee which is not relevant
 1863  to the employee’s capacity to perform his or her duties, except
 1864  as otherwise provided in this paragraph. Information that is
 1865  exempt shall include, but is not limited to, information
 1866  relating to workers’ compensation, insurance benefits, and
 1867  retirement or disability benefits.
 1868         g. Upon an employee’s entrance into the employee assistance
 1869  program, a program to assist any employee who has a behavioral
 1870  or medical disorder, substance abuse problem, or emotional
 1871  difficulty that affects the employee’s job performance, all
 1872  records relative to that participation shall be confidential and
 1873  exempt from the provisions of s. 119.07(1) and s. 24(a), Art. I
 1874  of the State Constitution, except as otherwise provided in s.
 1875  112.0455(11).
 1876         h. Information relating to negotiations for financing,
 1877  reinsurance, depopulation, or contractual services, until the
 1878  conclusion of the negotiations.
 1879         i. Minutes of closed meetings regarding underwriting files,
 1880  and minutes of closed meetings regarding an open claims file
 1881  until termination of all litigation and settlement of all claims
 1882  with regard to that claim, except that information otherwise
 1883  confidential or exempt by law shall be redacted.
 1884         2. If an authorized insurer is considering underwriting a
 1885  risk insured by the corporation, relevant underwriting files and
 1886  confidential claims files may be released to the insurer
 1887  provided the insurer agrees in writing, notarized and under
 1888  oath, to maintain the confidentiality of such files. If a file
 1889  is transferred to an insurer, that file is no longer a public
 1890  record because it is not held by an agency subject to the
 1891  provisions of the public records law. Underwriting files and
 1892  confidential claims files may also be released to staff and the
 1893  board of governors of the market assistance plan established
 1894  pursuant to s. 627.3515, who must retain the confidentiality of
 1895  such files, except such files may be released to authorized
 1896  insurers that are considering assuming the risks to which the
 1897  files apply, provided the insurer agrees in writing, notarized
 1898  and under oath, to maintain the confidentiality of such files.
 1899  Finally, the corporation or the board or staff of the market
 1900  assistance plan may make the following information obtained from
 1901  underwriting files and confidential claims files available to an
 1902  entity that has obtained a permit to become an authorized
 1903  insurer, a reinsurer that may provide reinsurance under s.
 1904  624.610, a licensed reinsurance broker, a licensed rating
 1905  organization, a modeling company, a licensed surplus lines
 1906  agent, or a licensed general lines insurance agent: name,
 1907  address, and telephone number of the residential property owner
 1908  or insured; location of the risk; rating information; loss
 1909  history; and policy type. The receiving person must retain the
 1910  confidentiality of the information received and may use the
 1911  information only for the purposes of developing a take-out plan
 1912  or a rating plan to be submitted to the office for approval or
 1913  otherwise analyzing the underwriting of a risk or risks insured
 1914  by the corporation on behalf of the private insurance market. A
 1915  licensed surplus lines agent or licensed general lines insurance
 1916  agent may not use such information for the direct solicitation
 1917  of policyholders.
 1918         3. A policyholder who has filed suit against the
 1919  corporation has the right to discover the contents of his or her
 1920  own claims file to the same extent that discovery of such
 1921  contents would be available from a private insurer in litigation
 1922  as provided by the Florida Rules of Civil Procedure, the Florida
 1923  Evidence Code, and other applicable law. Pursuant to subpoena, a
 1924  third party has the right to discover the contents of an
 1925  insured’s or applicant’s underwriting or claims file to the same
 1926  extent that discovery of such contents would be available from a
 1927  private insurer by subpoena as provided by the Florida Rules of
 1928  Civil Procedure, the Florida Evidence Code, and other applicable
 1929  law, and subject to any confidentiality protections requested by
 1930  the corporation and agreed to by the seeking party or ordered by
 1931  the court. The corporation may release confidential underwriting
 1932  and claims file contents and information as it deems necessary
 1933  and appropriate to underwrite or service insurance policies and
 1934  claims, subject to any confidentiality protections deemed
 1935  necessary and appropriate by the corporation.
 1936         4. Portions of meetings of the corporation are exempt from
 1937  the provisions of s. 286.011 and s. 24(b), Art. I of the State
 1938  Constitution wherein confidential underwriting files or
 1939  confidential open claims files are discussed. All portions of
 1940  corporation meetings which are closed to the public shall be
 1941  recorded by a court reporter. The court reporter shall record
 1942  the times of commencement and termination of the meeting, all
 1943  discussion and proceedings, the names of all persons present at
 1944  any time, and the names of all persons speaking. No portion of
 1945  any closed meeting shall be off the record. Subject to the
 1946  provisions hereof and s. 119.07(1)(d)-(f), the court reporter’s
 1947  notes of any closed meeting shall be retained by the corporation
 1948  for a minimum of 5 years. A copy of the transcript, less any
 1949  exempt matters, of any closed meeting wherein claims are
 1950  discussed shall become public as to individual claims after
 1951  settlement of the claim.
 1952         (z) In enacting the provisions of this section, the
 1953  Legislature recognizes that both the Florida Windstorm
 1954  Underwriting Association and the Residential Property and
 1955  Casualty Joint Underwriting Association have entered into
 1956  financing arrangements that obligate each entity to service its
 1957  debts and maintain the capacity to repay funds secured under
 1958  these financing arrangements. It is the intent of the
 1959  Legislature that nothing in this section be construed to
 1960  compromise, diminish, or interfere with the rights of creditors
 1961  under such financing arrangements. It is further the intent of
 1962  the Legislature to preserve the obligations of the Florida
 1963  Windstorm Underwriting Association and Residential Property and
 1964  Casualty Joint Underwriting Association with regard to
 1965  outstanding financing arrangements, with such obligations
 1966  passing entirely and unchanged to the corporation and,
 1967  specifically, to the Citizens applicable account of the
 1968  corporation. So long as any bonds, notes, indebtedness, or other
 1969  financing obligations of the Florida Windstorm Underwriting
 1970  Association or the Residential Property and Casualty Joint
 1971  Underwriting Association are outstanding, under the terms of the
 1972  financing documents pertaining to them, the governing board of
 1973  the corporation shall have and shall exercise the authority to
 1974  levy, charge, collect, and receive all premiums, assessments,
 1975  surcharges, charges, revenues, and receipts that the
 1976  associations had authority to levy, charge, collect, or receive
 1977  under the provisions of subsection (2) and this subsection,
 1978  respectively, as they existed on January 1, 2002, to provide
 1979  moneys, without exercise of the authority provided by this
 1980  subsection, in at least the amounts, and by the times, as would
 1981  be provided under those former provisions of subsection (2) or
 1982  this subsection, respectively, so that the value, amount, and
 1983  collectability of any assets, revenues, or revenue source
 1984  pledged or committed to, or any lien thereon securing such
 1985  outstanding bonds, notes, indebtedness, or other financing
 1986  obligations will not be diminished, impaired, or adversely
 1987  affected by the amendments made by this act and to permit
 1988  compliance with all provisions of financing documents pertaining
 1989  to such bonds, notes, indebtedness, or other financing
 1990  obligations, or the security or credit enhancement for them, and
 1991  any reference in this subsection to bonds, notes, indebtedness,
 1992  financing obligations, or similar obligations, of the
 1993  corporation shall include like instruments or contracts of the
 1994  Florida Windstorm Underwriting Association and the Residential
 1995  Property and Casualty Joint Underwriting Association to the
 1996  extent not inconsistent with the provisions of the financing
 1997  documents pertaining to them.
 1998         (ii) The corporation shall revise the programs adopted
 1999  pursuant to sub-subparagraph (q)3.a. for personal lines
 2000  residential policies to maximize policyholder options and
 2001  encourage increased participation by insurers and agents. After
 2002  January 1, 2017, a policy may not be taken out of the
 2003  corporation unless the provisions of this paragraph are met.
 2004         1. The corporation must publish a periodic schedule of
 2005  cycles during which an insurer may identify, and notify the
 2006  corporation of, policies that the insurer is requesting to take
 2007  out. A request must include a description of the coverage
 2008  offered and an estimated premium and must be submitted to the
 2009  corporation in a form and manner prescribed by the corporation.
 2010         2. The corporation must maintain and make available to the
 2011  agent of record a consolidated list of all insurers requesting
 2012  to take out a policy. The list must include a description of the
 2013  coverage offered and the estimated premium for each take-out
 2014  request.
 2015         3. If a policyholder receives a take-out offer from an
 2016  authorized insurer, the risk is no longer eligible for coverage
 2017  with the corporation unless the premium for coverage from the
 2018  authorized insurer is more than 20 percent greater than the
 2019  renewal premium for comparable coverage from the corporation
 2020  pursuant to sub-subparagraph (c)5.d. (c)5.c. This subparagraph
 2021  applies to take-out offers that are part of an application to
 2022  participate in depopulation submitted to the office on or after
 2023  January 1, 2023. This subparagraph only applies to a policy that
 2024  covers a primary residence.
 2025         4. The corporation must provide written notice to the
 2026  policyholder and the agent of record regarding all insurers
 2027  requesting to take out the policy. The notice must be in a
 2028  format prescribed by the corporation and include, for each take
 2029  out offer:
 2030         a. The amount of the estimated premium;
 2031         b. A description of the coverage; and
 2032         c. A comparison of the estimated premium and coverage
 2033  offered by the insurer to the estimated premium and coverage
 2034  provided by the corporation.
 2035         (nn)The corporation may share its claims data with the
 2036  National Insurance Crime Bureau, provided that the National
 2037  Insurance Crime Bureau agrees to maintain the confidentiality of
 2038  such documents as otherwise provided for in paragraph (x).
 2039         (7)TRADEMARKS, COPYRIGHTS, OR PATENTS.—Notwithstanding any
 2040  other law, the corporation is authorized, in its own name, to:
 2041         (a) Perform all things necessary to secure letters of
 2042  patent, copyrights, or trademarks on any work products and
 2043  enforce its rights therein.
 2044         (b) License, lease, assign, or otherwise give written
 2045  consent to any person, firm, or corporation for the manufacture
 2046  or use thereof, on a royalty basis or for such other
 2047  consideration as the corporation deems proper.
 2048         (c) Take any action necessary, including legal action, to
 2049  protect trademarks, copyrights, or patents against improper or
 2050  unlawful use or infringement.
 2051         (d) Enforce the collection of any sums due the corporation
 2052  for the manufacture or use thereof by any other party.
 2053         (e) Sell any of its trademarks, copyrights, or patents and
 2054  execute all instruments necessary to consummate any such sale.
 2055         (f) Do all other acts necessary and proper for the
 2056  execution of powers and duties herein conferred upon the
 2057  corporation in order to administer this subsection.
 2058         Section 2. Paragraphs (a), (b), and (c) of subsection (3)
 2059  and paragraphs (d), (e), and (f) of subsection (6) of section
 2060  627.3511, Florida Statutes, are amended to read:
 2061         627.3511 Depopulation of Citizens Property Insurance
 2062  Corporation.—
 2063         (3) EXEMPTION FROM DEFICIT ASSESSMENTS.—
 2064         (a) The calculation of an insurer’s assessment liability
 2065  under s. 627.351(6)(b)3.a. shall, for an insurer that in any
 2066  calendar year removes 50,000 or more risks from the Citizens
 2067  Property Insurance Corporation, either by issuance of a policy
 2068  upon expiration or cancellation of the corporation policy or by
 2069  assumption of the corporation’s obligations with respect to in
 2070  force policies, exclude such removed policies for the succeeding
 2071  3 years, as follows:
 2072         1. In the first year following removal of the risks, the
 2073  risks are excluded from the calculation to the extent of 100
 2074  percent.
 2075         2. In the second year following removal of the risks, the
 2076  risks are excluded from the calculation to the extent of 75
 2077  percent.
 2078         3. In the third year following removal of the risks, the
 2079  risks are excluded from the calculation to the extent of 50
 2080  percent.
 2081  
 2082  If the removal of risks is accomplished through assumption of
 2083  obligations with respect to in-force policies, the corporation
 2084  shall pay to the assuming insurer all unearned premium with
 2085  respect to such policies less any policy acquisition costs
 2086  agreed to by the corporation and assuming insurer. The term
 2087  “policy acquisition costs” is defined as costs of issuance of
 2088  the policy by the corporation which includes agent commissions,
 2089  servicing company fees, and premium tax. This paragraph does not
 2090  apply to an insurer that, at any time within 5 years before
 2091  removing the risks, had a market share in excess of 0.1 percent
 2092  of the statewide aggregate gross direct written premium for any
 2093  line of property insurance, or to an affiliate of such an
 2094  insurer. This paragraph does not apply unless either at least 40
 2095  percent of the risks removed from the corporation are located in
 2096  Miami-Dade, Broward, and Palm Beach Counties, or at least 30
 2097  percent of the risks removed from the corporation are located in
 2098  such counties and an additional 50 percent of the risks removed
 2099  from the corporation are located in other coastal counties.
 2100         (b) An insurer that first wrote personal lines residential
 2101  property coverage in this state on or after July 1, 1994, is
 2102  exempt from liability regular deficit assessments imposed
 2103  pursuant to s. 627.351(6)(b)3.a., but not emergency assessments
 2104  collected from policyholders pursuant to s. 627.351(6)(b)3.c. s.
 2105  627.351(6)(b)3.e., of the Citizens Property Insurance
 2106  Corporation until the earlier of the following:
 2107         1. The end of the calendar year in which it first wrote 0.5
 2108  percent or more of the statewide aggregate direct written
 2109  premium for any line of residential property coverage; or
 2110         2. December 31, 1997, or December 31 of the third year in
 2111  which it wrote such coverage in this state, whichever is later.
 2112         (c) Other than an insurer that is exempt under paragraph
 2113  (b), an insurer that in any calendar year increases its total
 2114  structure exposure subject to wind coverage by 25 percent or
 2115  more over its exposure for the preceding calendar year is, with
 2116  respect to that year, exempt from liability deficit assessments
 2117  imposed pursuant to s. 627.351(6)(b)3.a., but not from emergency
 2118  assessments collected from policyholders pursuant to s.
 2119  627.351(6)(b)3.c. s. 627.351(6)(b)3.e., of the Citizens Property
 2120  Insurance Corporation attributable to such increase in exposure.
 2121         (6) COMMERCIAL RESIDENTIAL TAKE-OUT PLANS.—
 2122         (d) The calculation of an insurer’s regular assessment
 2123  liability under s. 627.351(6)(b)3.a., but not emergency
 2124  assessments collected from policyholders pursuant to s.
 2125  627.351(6)(b)3.c. s. 627.351(6)(b)3.e., shall, with respect to
 2126  commercial residential policies removed from the corporation
 2127  under an approved take-out plan, exclude such removed policies
 2128  for the succeeding 3 years, as follows:
 2129         1. In the first year following removal of the policies, the
 2130  policies are excluded from the calculation to the extent of 100
 2131  percent.
 2132         2. In the second year following removal of the policies,
 2133  the policies are excluded from the calculation to the extent of
 2134  75 percent.
 2135         3. In the third year following removal of the policies, the
 2136  policies are excluded from the calculation to the extent of 50
 2137  percent.
 2138         (e) An insurer that first wrote commercial residential
 2139  property coverage in this state on or after June 1, 1996, is
 2140  exempt from liability regular assessments under s.
 2141  627.351(6)(b)3.a., but not from emergency assessments collected
 2142  from policyholders pursuant to s. 627.351(6)(b)3.c. s.
 2143  627.351(6)(b)3.e., with respect to commercial residential
 2144  policies until the earlier of:
 2145         1. The end of the calendar year in which such insurer first
 2146  wrote 0.5 percent or more of the statewide aggregate direct
 2147  written premium for commercial residential property coverage; or
 2148         2. December 31 of the third year in which such insurer
 2149  wrote commercial residential property coverage in this state.
 2150         (f) An insurer that is not otherwise exempt from liability
 2151  regular assessments under s. 627.351(6)(b)3.a. with respect to
 2152  commercial residential policies is, for any calendar year in
 2153  which such insurer increased its total commercial residential
 2154  hurricane exposure by 25 percent or more over its exposure for
 2155  the preceding calendar year, exempt from liability regular
 2156  assessments under s. 627.351(6)(b)3.a., but not emergency
 2157  assessments collected from policyholders pursuant to s.
 2158  627.351(6)(b)3.c. s. 627.351(6)(b)3.e., attributable to such
 2159  increased exposure.
 2160         Section 3. Subsections (5), (6), and (7) of section
 2161  627.3518, Florida Statutes, are amended to read:
 2162         627.3518 Citizens Property Insurance Corporation
 2163  policyholder eligibility clearinghouse program.—The purpose of
 2164  this section is to provide a framework for the corporation to
 2165  implement a clearinghouse program by January 1, 2014.
 2166         (5) Notwithstanding s. 627.3517, any applicant for new
 2167  coverage from the corporation is not eligible for coverage from
 2168  the corporation if provided an offer of coverage from an
 2169  authorized insurer through the program at a premium that is at
 2170  or below the eligibility threshold for applicants for new
 2171  coverage of a primary residence established in s.
 2172  627.351(6)(c)5.a., or for applicants for new coverage of a risk
 2173  that is not a primary residence established in s.
 2174  627.351(6)(c)5.b. Whenever an offer of coverage for a personal
 2175  lines risk is received for a policyholder of the corporation at
 2176  renewal from an authorized insurer through the program which is
 2177  at or below the eligibility threshold for primary residences of
 2178  policyholders of the corporation established in s.
 2179  627.351(6)(c)5.a., or the eligibility threshold for risks that
 2180  are not primary residences of policyholders of the corporation
 2181  established in s. 627.351(6)(c)5.b., the risk is not eligible
 2182  for coverage with the corporation. In the event an offer of
 2183  coverage for a new applicant is received from an authorized
 2184  insurer through the program, and the premium offered exceeds the
 2185  eligibility threshold for applicants for new coverage of a
 2186  primary residence established in s. 627.351(6)(c)5.a., or the
 2187  eligibility threshold for applicants for new coverage on a risk
 2188  that is not a primary residence established in s.
 2189  627.351(6)(c)5.b., the applicant or insured may elect to accept
 2190  such coverage, or may elect to accept or continue coverage with
 2191  the corporation. In the event an offer of coverage for a
 2192  personal lines risk is received from an authorized insurer at
 2193  renewal through the program, and the premium offered exceeds the
 2194  eligibility threshold for primary residences of policyholders of
 2195  the corporation established in s. 627.351(6)(c)5.a., or exceeds
 2196  the eligibility threshold for risks that are not primary
 2197  residences of policyholders of the corporation established in s.
 2198  627.351(6)(c)5.b., the insured may elect to accept such
 2199  coverage, or may elect to accept or continue coverage with the
 2200  corporation. Section 627.351(6)(c)5.a.(I) and b.(I) does not
 2201  apply to an offer of coverage from an authorized insurer
 2202  obtained through the program. As used in this subsection, the
 2203  term “primary residence” has the same meaning as in s.
 2204  627.351(6)(c)2.a.
 2205         (6) Independent insurance agents submitting new
 2206  applications for coverage or that are the agent of record on a
 2207  renewal policy submitted to the program:
 2208         (a) Are granted and must maintain ownership and the
 2209  exclusive use of expirations, records, or other written or
 2210  electronic information directly related to such applications or
 2211  renewals written through the corporation or through an insurer
 2212  participating in the program, notwithstanding s.
 2213  627.351(6)(c)5.a.(I)(B) and (II)(B) or s.
 2214  627.351(6)(c)5.b.(I)(B) and (II)(B). Such ownership is granted
 2215  for as long as the insured remains with the agency or until sold
 2216  or surrendered in writing by the agent. Contracts with the
 2217  corporation or required by the corporation must not amend,
 2218  modify, interfere with, or limit such rights of ownership. Such
 2219  expirations, records, or other written or electronic information
 2220  may be used to review an application, issue a policy, or for any
 2221  other purpose necessary for placing such business through the
 2222  program.
 2223         (b) May not be required to be appointed by any insurer
 2224  participating in the program for policies written solely through
 2225  the program, notwithstanding the provisions of s. 626.112.
 2226         (c) May accept an appointment from any insurer
 2227  participating in the program.
 2228         (d) May enter into either a standard or limited agency
 2229  agreement with the insurer, at the insurer’s option.
 2230  
 2231  Applicants ineligible for coverage in accordance with subsection
 2232  (5) remain ineligible if their independent agent is unwilling or
 2233  unable to enter into a standard or limited agency agreement with
 2234  an insurer participating in the program.
 2235         (7) Exclusive agents submitting new applications for
 2236  coverage or that are the agent of record on a renewal policy
 2237  submitted to the program:
 2238         (a) Must maintain ownership and the exclusive use of
 2239  expirations, records, or other written or electronic information
 2240  directly related to such applications or renewals written
 2241  through the corporation or through an insurer participating in
 2242  the program, notwithstanding s. 627.351(6)(c)5.a.(I)(B) and
 2243  (II)(B) or s. 627.351(6)(c)5.b.(I)(B) and (II)(B). Contracts
 2244  
 2245  ================= T I T L E  A M E N D M E N T ================
 2246  And the title is amended as follows:
 2247         Delete lines 3 - 65
 2248  and insert:
 2249         Corporation; amending s. 627.351, F.S.; revising
 2250         circumstances under which certain insurers’
 2251         associations must levy market equalization surcharges
 2252         on policyholders; deleting obsolete language;
 2253         authorizing the Office of Insurance Regulation to
 2254         evaluate whether there is a reasonable degree of
 2255         competition within certain zip codes; providing that
 2256         certain structures located within certain zip codes
 2257         are eligible for coverage from the corporation;
 2258         providing that certain accounts for Citizens Property
 2259         Insurance Corporation revenues, assets, liabilities,
 2260         losses, and expenses are now maintained as the
 2261         Citizens account; revising the requirements for
 2262         certain coverages by the corporation; requiring the
 2263         inclusion of quota share primary insurance in certain
 2264         policies; deleting provisions relating to legislative
 2265         goals; conforming provisions to changes made by the
 2266         act; revising provisions relating to deficits in
 2267         certain accounts; revising the definition of the term
 2268         “assessments”; deleting provisions relating to
 2269         surcharges and regular assessments upon determination
 2270         of projected deficits; deleting provisions relating to
 2271         funds available to the corporation as sources of
 2272         revenue and bonds; deleting definitions; deleting
 2273         provisions relating to the duties of the Florida
 2274         Surplus Lines Service Office; deleting provisions
 2275         relating to disposition of excess amounts of
 2276         assessments and surcharges; defining the terms
 2277         “approved surplus lines insurer” and “primary
 2278         residence”; providing applicability of certain
 2279         provisions relating to personal lines residential
 2280         risks coverage by the corporation; providing that
 2281         certain personal lines residential risks are not
 2282         eligible for any policy issued by the corporation;
 2283         providing an exception; providing that certain
 2284         personal lines residential risks are not eligible for
 2285         coverage with the corporation under certain
 2286         circumstances; providing an exception; providing that
 2287         certain risks are eligible for certain standard
 2288         policies; providing that certain risks are eligible
 2289         for certain basic polices; requiring the department to
 2290         determine the type of policy to be provided on the
 2291         basis of certain standards and practices; providing
 2292         that certain policyholders do not remain eligible for
 2293         coverage from the corporation; requiring the insurer
 2294         to pay the producing agent of record a certain amount
 2295         or make certain offers under certain circumstances;
 2296         providing that the producing agent of record is
 2297         entitled to retain certain commission on the policy;
 2298         requiring the insurer to pay the producing agent of
 2299         record a certain amount or make certain offers under
 2300         certain circumstances; revising the corporation’s plan
 2301         of operation; revising the required statements from
 2302         applicants for coverage; revising the duties of the
 2303         executive director of the corporation; authorizing the
 2304         executive director to assign and appoint designees;
 2305         deleting an applicability provision relating to bond
 2306         requirements; revising the personal lines polices that
 2307         are not subject to certain rate limitations; deleting
 2308         provisions relating to certain insurer assessment
 2309         deferments; deleting provisions relating to the
 2310         intangibles of and coverage by the Florida Windstorm
 2311         Underwriting Association and the corporation coastal
 2312         account; authorizing the corporation and certain
 2313         persons to make specified information obtained from
 2314         underwriting files and confidential claims files
 2315         available to licensed surplus lines agents;
 2316         prohibiting such agents from using such information
 2317         for specified purposes; providing applicability of
 2318         provisions relating to take-out offers that are part
 2319         of applications to participate in depopulation;
 2320         authorizing the corporation to share its claims data
 2321         with a specified entity; authorizing the corporation
 2322         to take certain actions relating to trademarks,
 2323         copyrights, or patents; amending s. 627.3511, F.S.;
 2324         conforming provisions to changes made by the act;
 2325         conforming cross-references; amending s. 627.3518,
 2326         F.S.; revising eligibility requirements for
 2327         policyholders at renewal and for applicants for new