Florida Senate - 2012                          SENATOR AMENDMENT
       Bill No. CS for SB 578
       
       
       
       
       
       
                                Barcode 137374                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                                       .                                
                                       .                                
                                       .                                
                 Floor: WD/2R          .                                
             02/29/2012 10:42 AM       .                                
       —————————————————————————————————————————————————————————————————




       —————————————————————————————————————————————————————————————————
       Senator Fasano moved the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 25 - 28
    4  and insert:
    5         Section 1. Paragraphs (c), (q), and (x) of subsection (6)
    6  of section 627.351, Florida Statutes, are amended to read:
    7         627.351 Insurance risk apportionment plans.—
    8         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
    9         (c) The corporation’s plan of operation:
   10         1. Must provide for adoption of residential property and
   11  casualty insurance policy forms and commercial residential and
   12  nonresidential property insurance forms, which must be approved
   13  by the office before use. The corporation shall adopt the
   14  following policy forms:
   15         a. Standard personal lines policy forms that are
   16  comprehensive multiperil policies providing full coverage of a
   17  residential property equivalent to the coverage provided in the
   18  private insurance market under an HO-3, HO-4, or HO-6 policy.
   19         b. Basic personal lines policy forms that are policies
   20  similar to an HO-8 policy or a dwelling fire policy that provide
   21  coverage meeting the requirements of the secondary mortgage
   22  market, but which is more limited than the coverage under a
   23  standard policy.
   24         c. Commercial lines residential and nonresidential policy
   25  forms that are generally similar to the basic perils of full
   26  coverage obtainable for commercial residential structures and
   27  commercial nonresidential structures in the admitted voluntary
   28  market.
   29         d. Personal lines and commercial lines residential property
   30  insurance forms that cover the peril of wind only. The forms are
   31  applicable only to residential properties located in areas
   32  eligible for coverage under the coastal account referred to in
   33  sub-subparagraph (b)2.a.
   34         e. Commercial lines nonresidential property insurance forms
   35  that cover the peril of wind only. The forms are applicable only
   36  to nonresidential properties located in areas eligible for
   37  coverage under the coastal account referred to in sub
   38  subparagraph (b)2.a.
   39         f. The corporation may adopt variations of the policy forms
   40  listed in sub-subparagraphs a.-e. which contain more restrictive
   41  coverage.
   42         2. Must provide that the corporation adopt a program in
   43  which the corporation and authorized insurers enter into quota
   44  share primary insurance agreements for hurricane coverage, as
   45  defined in s. 627.4025(2)(a), for eligible risks, and adopt
   46  property insurance forms for eligible risks which cover the
   47  peril of wind only.
   48         a. As used in this subsection, the term:
   49         (I) “Quota share primary insurance” means an arrangement in
   50  which the primary hurricane coverage of an eligible risk is
   51  provided in specified percentages by the corporation and an
   52  authorized insurer. The corporation and authorized insurer are
   53  each solely responsible for a specified percentage of hurricane
   54  coverage of an eligible risk as set forth in a quota share
   55  primary insurance agreement between the corporation and an
   56  authorized insurer and the insurance contract. The
   57  responsibility of the corporation or authorized insurer to pay
   58  its specified percentage of hurricane losses of an eligible
   59  risk, as set forth in the agreement, may not be altered by the
   60  inability of the other party to pay its specified percentage of
   61  losses. Eligible risks that are provided hurricane coverage
   62  through a quota share primary insurance arrangement must be
   63  provided policy forms that set forth the obligations of the
   64  corporation and authorized insurer under the arrangement,
   65  clearly specify the percentages of quota share primary insurance
   66  provided by the corporation and authorized insurer, and
   67  conspicuously and clearly state that the authorized insurer and
   68  the corporation may not be held responsible beyond their
   69  specified percentage of coverage of hurricane losses.
   70         (II) “Eligible risks” means personal lines residential and
   71  commercial lines residential risks that meet the underwriting
   72  criteria of the corporation and are located in areas that were
   73  eligible for coverage by the Florida Windstorm Underwriting
   74  Association on January 1, 2002.
   75         b. The corporation may enter into quota share primary
   76  insurance agreements with authorized insurers at corporation
   77  coverage levels of 90 percent and 50 percent.
   78         c. If the corporation determines that additional coverage
   79  levels are necessary to maximize participation in quota share
   80  primary insurance agreements by authorized insurers, the
   81  corporation may establish additional coverage levels. However,
   82  the corporation’s quota share primary insurance coverage level
   83  may not exceed 90 percent.
   84         d. Any quota share primary insurance agreement entered into
   85  between an authorized insurer and the corporation must provide
   86  for a uniform specified percentage of coverage of hurricane
   87  losses, by county or territory as set forth by the corporation
   88  board, for all eligible risks of the authorized insurer covered
   89  under the agreement.
   90         e. Any quota share primary insurance agreement entered into
   91  between an authorized insurer and the corporation is subject to
   92  review and approval by the office. However, such agreement shall
   93  be authorized only as to insurance contracts entered into
   94  between an authorized insurer and an insured who is already
   95  insured by the corporation for wind coverage.
   96         f. For all eligible risks covered under quota share primary
   97  insurance agreements, the exposure and coverage levels for both
   98  the corporation and authorized insurers shall be reported by the
   99  corporation to the Florida Hurricane Catastrophe Fund. For all
  100  policies of eligible risks covered under such agreements, the
  101  corporation and the authorized insurer must maintain complete
  102  and accurate records for the purpose of exposure and loss
  103  reimbursement audits as required by fund rules. The corporation
  104  and the authorized insurer shall each maintain duplicate copies
  105  of policy declaration pages and supporting claims documents.
  106         g. The corporation board shall establish in its plan of
  107  operation standards for quota share agreements which ensure that
  108  there is no discriminatory application among insurers as to the
  109  terms of the agreements, pricing of the agreements, incentive
  110  provisions if any, and consideration paid for servicing policies
  111  or adjusting claims.
  112         h. The quota share primary insurance agreement between the
  113  corporation and an authorized insurer must set forth the
  114  specific terms under which coverage is provided, including, but
  115  not limited to, the sale and servicing of policies issued under
  116  the agreement by the insurance agent of the authorized insurer
  117  producing the business, the reporting of information concerning
  118  eligible risks, the payment of premium to the corporation, and
  119  arrangements for the adjustment and payment of hurricane claims
  120  incurred on eligible risks by the claims adjuster and personnel
  121  of the authorized insurer. Entering into a quota sharing
  122  insurance agreement between the corporation and an authorized
  123  insurer is voluntary and at the discretion of the authorized
  124  insurer.
  125         3.a. May provide that the corporation may employ or
  126  otherwise contract with individuals or other entities to provide
  127  administrative or professional services that may be appropriate
  128  to effectuate the plan. The corporation may borrow funds by
  129  issuing bonds or by incurring other indebtedness, and shall have
  130  other powers reasonably necessary to effectuate the requirements
  131  of this subsection, including, without limitation, the power to
  132  issue bonds and incur other indebtedness in order to refinance
  133  outstanding bonds or other indebtedness. The corporation may
  134  seek judicial validation of its bonds or other indebtedness
  135  under chapter 75. The corporation may issue bonds or incur other
  136  indebtedness, or have bonds issued on its behalf by a unit of
  137  local government pursuant to subparagraph (q)2. in the absence
  138  of a hurricane or other weather-related event, upon a
  139  determination by the corporation, subject to approval by the
  140  office, that such action would enable it to efficiently meet the
  141  financial obligations of the corporation and that such
  142  financings are reasonably necessary to effectuate the
  143  requirements of this subsection. The corporation may take all
  144  actions needed to facilitate tax-free status for such bonds or
  145  indebtedness, including formation of trusts or other affiliated
  146  entities. The corporation may pledge assessments, projected
  147  recoveries from the Florida Hurricane Catastrophe Fund, other
  148  reinsurance recoverables, market equalization and other
  149  surcharges, and other funds available to the corporation as
  150  security for bonds or other indebtedness. In recognition of s.
  151  10, Art. I of the State Constitution, prohibiting the impairment
  152  of obligations of contracts, it is the intent of the Legislature
  153  that no action be taken whose purpose is to impair any bond
  154  indenture or financing agreement or any revenue source committed
  155  by contract to such bond or other indebtedness.
  156         b. To ensure that the corporation is operating in an
  157  efficient and economic manner while providing quality service to
  158  policyholders, applicants, and agents, the board shall
  159  commission an independent third-party consultant having
  160  expertise in insurance company management or insurance company
  161  management consulting to prepare a report and make
  162  recommendations on the relative costs and benefits of
  163  outsourcing various policy issuance and service functions to
  164  private servicing carriers or entities performing similar
  165  functions in the private market for a fee, rather than
  166  performing such functions in-house. In making such
  167  recommendations, the consultant shall consider how other
  168  residual markets, both in this state and around the country,
  169  outsource appropriate functions or use servicing carriers to
  170  better match expenses with revenues that fluctuate based on a
  171  widely varying policy count. The report must be completed by
  172  July 1, 2012. Upon receiving the report, the board shall develop
  173  a plan to implement the report and submit the plan for review,
  174  modification, and approval to the Financial Services Commission.
  175  Upon the commission’s approval of the plan, the board shall
  176  begin implementing the plan by January 1, 2013.
  177         4. Must require that the corporation operate subject to the
  178  supervision and approval of a board of governors consisting of
  179  eight individuals who are residents of this state, from
  180  different geographical areas of this state.
  181         a. The Governor, the Chief Financial Officer, the President
  182  of the Senate, and the Speaker of the House of Representatives
  183  shall each appoint two members of the board. At least one of the
  184  two members appointed by each appointing officer must have
  185  demonstrated expertise in insurance and is deemed to be within
  186  the scope of the exemption provided in s. 112.313(7)(b). The
  187  Chief Financial Officer shall designate one of the appointees as
  188  chair. All board members serve at the pleasure of the appointing
  189  officer. All members of the board are subject to removal at will
  190  by the officers who appointed them. All board members, including
  191  the chair, must be appointed to serve for 3-year terms beginning
  192  annually on a date designated by the plan. However, for the
  193  first term beginning on or after July 1, 2009, each appointing
  194  officer shall appoint one member of the board for a 2-year term
  195  and one member for a 3-year term. A board vacancy shall be
  196  filled for the unexpired term by the appointing officer. The
  197  Chief Financial Officer shall appoint a technical advisory group
  198  to provide information and advice to the board in connection
  199  with the board’s duties under this subsection. The executive
  200  director and senior managers of the corporation shall be engaged
  201  by the board and serve at the pleasure of the board. Any
  202  executive director appointed on or after July 1, 2006, is
  203  subject to confirmation by the Senate. The executive director is
  204  responsible for employing other staff as the corporation may
  205  require, subject to review and concurrence by the board.
  206         b. The board shall create a Market Accountability Advisory
  207  Committee to assist the corporation in developing awareness of
  208  its rates and its customer and agent service levels in
  209  relationship to the voluntary market insurers writing similar
  210  coverage.
  211         (I) The members of the advisory committee consist of the
  212  following 11 persons, one of whom must be elected chair by the
  213  members of the committee: four representatives, one appointed by
  214  the Florida Association of Insurance Agents, one by the Florida
  215  Association of Insurance and Financial Advisors, one by the
  216  Professional Insurance Agents of Florida, and one by the Latin
  217  American Association of Insurance Agencies; three
  218  representatives appointed by the insurers with the three highest
  219  voluntary market share of residential property insurance
  220  business in the state; one representative from the Office of
  221  Insurance Regulation; one consumer appointed by the board who is
  222  insured by the corporation at the time of appointment to the
  223  committee; one representative appointed by the Florida
  224  Association of Realtors; and one representative appointed by the
  225  Florida Bankers Association. All members shall be appointed to
  226  3-year terms and may serve for consecutive terms.
  227         (II) The committee shall report to the corporation at each
  228  board meeting on insurance market issues which may include rates
  229  and rate competition with the voluntary market; service,
  230  including policy issuance, claims processing, and general
  231  responsiveness to policyholders, applicants, and agents; and
  232  matters relating to depopulation.
  233         5. Must provide a procedure for determining the eligibility
  234  of a risk for coverage, as follows:
  235         a. Subject to s. 627.3517, with respect to personal lines
  236  residential risks, if the risk is offered coverage from an
  237  authorized insurer at the insurer’s approved rate under a
  238  standard policy including wind coverage or, if consistent with
  239  the insurer’s underwriting rules as filed with the office, a
  240  basic policy including wind coverage, for a new application to
  241  the corporation for coverage, the risk is not eligible for any
  242  policy issued by the corporation unless the premium for coverage
  243  from the authorized insurer is more than 15 percent greater than
  244  the premium for comparable coverage from the corporation. If the
  245  risk is not able to obtain such offer, the risk is eligible for
  246  a standard policy including wind coverage or a basic policy
  247  including wind coverage issued by the corporation; however, if
  248  the risk could not be insured under a standard policy including
  249  wind coverage regardless of market conditions, the risk is
  250  eligible for a basic policy including wind coverage unless
  251  rejected under subparagraph 8. However, a policyholder of the
  252  corporation or a policyholder removed from the corporation
  253  through an assumption agreement until the end of the assumption
  254  period remains eligible for coverage from the corporation
  255  regardless of any offer of coverage from an authorized insurer
  256  or surplus lines insurer. The corporation shall determine the
  257  type of policy to be provided on the basis of objective
  258  standards specified in the underwriting manual and based on
  259  generally accepted underwriting practices.
  260         (I) If the risk accepts an offer of coverage through the
  261  market assistance plan or through a mechanism established by the
  262  corporation before a policy is issued to the risk by the
  263  corporation or during the first 30 days of coverage by the
  264  corporation, and the producing agent who submitted the
  265  application to the plan or to the corporation is not currently
  266  appointed by the insurer, the insurer shall:
  267         (A) Pay to the producing agent of record of the policy for
  268  the first year, an amount that is the greater of the insurer’s
  269  usual and customary commission for the type of policy written or
  270  a fee equal to the usual and customary commission of the
  271  corporation; or
  272         (B) Offer to allow the producing agent of record of the
  273  policy to continue servicing the policy for at least 1 year and
  274  offer to pay the agent the greater of the insurer’s or the
  275  corporation’s usual and customary commission for the type of
  276  policy written.
  277  
  278  If the producing agent is unwilling or unable to accept
  279  appointment, the new insurer shall pay the agent in accordance
  280  with sub-sub-sub-subparagraph (A).
  281         (II) If the corporation enters into a contractual agreement
  282  for a take-out plan, the producing agent of record of the
  283  corporation policy is entitled to retain any unearned commission
  284  on the policy, and the insurer shall:
  285         (A) Pay to the producing agent of record, for the first
  286  year, an amount that is the greater of the insurer’s usual and
  287  customary commission for the type of policy written or a fee
  288  equal to the usual and customary commission of the corporation;
  289  or
  290         (B) Offer to allow the producing agent of record to
  291  continue servicing the policy for at least 1 year and offer to
  292  pay the agent the greater of the insurer’s or the corporation’s
  293  usual and customary commission for the type of policy written.
  294  
  295  If the producing agent is unwilling or unable to accept
  296  appointment, the new insurer shall pay the agent in accordance
  297  with sub-sub-sub-subparagraph (A).
  298         b. With respect to commercial lines residential risks, for
  299  a new application to the corporation for coverage, if the risk
  300  is offered coverage under a policy including wind coverage from
  301  an authorized insurer at its approved rate, the risk is not
  302  eligible for a policy issued by the corporation unless the
  303  premium for coverage from the authorized insurer is more than 15
  304  percent greater than the premium for comparable coverage from
  305  the corporation. If the risk is not able to obtain any such
  306  offer, the risk is eligible for a policy including wind coverage
  307  issued by the corporation. However, a policyholder of the
  308  corporation or a policyholder removed from the corporation
  309  through an assumption agreement until the end of the assumption
  310  period remains eligible for coverage from the corporation
  311  regardless of an offer of coverage from an authorized insurer or
  312  surplus lines insurer.
  313         (I) If the risk accepts an offer of coverage through the
  314  market assistance plan or through a mechanism established by the
  315  corporation before a policy is issued to the risk by the
  316  corporation or during the first 30 days of coverage by the
  317  corporation, and the producing agent who submitted the
  318  application to the plan or the corporation is not currently
  319  appointed by the insurer, the insurer shall:
  320         (A) Pay to the producing agent of record of the policy, for
  321  the first year, an amount that is the greater of the insurer’s
  322  usual and customary commission for the type of policy written or
  323  a fee equal to the usual and customary commission of the
  324  corporation; or
  325         (B) Offer to allow the producing agent of record of the
  326  policy to continue servicing the policy for at least 1 year and
  327  offer to pay the agent the greater of the insurer’s or the
  328  corporation’s usual and customary commission for the type of
  329  policy written.
  330  
  331  If the producing agent is unwilling or unable to accept
  332  appointment, the new insurer shall pay the agent in accordance
  333  with sub-sub-sub-subparagraph (A).
  334         (II) If the corporation enters into a contractual agreement
  335  for a take-out plan, the producing agent of record of the
  336  corporation policy is entitled to retain any unearned commission
  337  on the policy, and the insurer shall:
  338         (A) Pay to the producing agent of record, for the first
  339  year, an amount that is the greater of the insurer’s usual and
  340  customary commission for the type of policy written or a fee
  341  equal to the usual and customary commission of the corporation;
  342  or
  343         (B) Offer to allow the producing agent of record to
  344  continue servicing the policy for at least 1 year and offer to
  345  pay the agent the greater of the insurer’s or the corporation’s
  346  usual and customary commission for the type of policy written.
  347  
  348  If the producing agent is unwilling or unable to accept
  349  appointment, the new insurer shall pay the agent in accordance
  350  with sub-sub-sub-subparagraph (A).
  351         c. For purposes of determining comparable coverage under
  352  sub-subparagraphs a. and b., the comparison must be based on
  353  those forms and coverages that are reasonably comparable. The
  354  corporation may rely on a determination of comparable coverage
  355  and premium made by the producing agent who submits the
  356  application to the corporation, made in the agent’s capacity as
  357  the corporation’s agent. A comparison may be made solely of the
  358  premium with respect to the main building or structure only on
  359  the following basis: the same coverage A or other building
  360  limits; the same percentage hurricane deductible that applies on
  361  an annual basis or that applies to each hurricane for commercial
  362  residential property; the same percentage of ordinance and law
  363  coverage, if the same limit is offered by both the corporation
  364  and the authorized insurer; the same mitigation credits, to the
  365  extent the same types of credits are offered both by the
  366  corporation and the authorized insurer; the same method for loss
  367  payment, such as replacement cost or actual cash value, if the
  368  same method is offered both by the corporation and the
  369  authorized insurer in accordance with underwriting rules; and
  370  any other form or coverage that is reasonably comparable as
  371  determined by the board. If an application is submitted to the
  372  corporation for wind-only coverage in the coastal account, the
  373  premium for the corporation’s wind-only policy plus the premium
  374  for the ex-wind policy that is offered by an authorized insurer
  375  to the applicant must be compared to the premium for multiperil
  376  coverage offered by an authorized insurer, subject to the
  377  standards for comparison specified in this subparagraph. If the
  378  corporation or the applicant requests from the authorized
  379  insurer a breakdown of the premium of the offer by types of
  380  coverage so that a comparison may be made by the corporation or
  381  its agent and the authorized insurer refuses or is unable to
  382  provide such information, the corporation may treat the offer as
  383  not being an offer of coverage from an authorized insurer at the
  384  insurer’s approved rate.
  385         6. Must include rules for classifications of risks and
  386  rates.
  387         7. Must provide that if premium and investment income for
  388  an account attributable to a particular calendar year are in
  389  excess of projected losses and expenses for the account
  390  attributable to that year, such excess shall be held in surplus
  391  in the account. Such surplus must be available to defray
  392  deficits in that account as to future years and used for that
  393  purpose before assessing assessable insurers and assessable
  394  insureds as to any calendar year.
  395         8. Must provide objective criteria and procedures to be
  396  uniformly applied to all applicants in determining whether an
  397  individual risk is so hazardous as to be uninsurable. In making
  398  this determination and in establishing the criteria and
  399  procedures, the following must be considered:
  400         a. Whether the likelihood of a loss for the individual risk
  401  is substantially higher than for other risks of the same class;
  402  and
  403         b. Whether the uncertainty associated with the individual
  404  risk is such that an appropriate premium cannot be determined.
  405  
  406  The acceptance or rejection of a risk by the corporation shall
  407  be construed as the private placement of insurance, and the
  408  provisions of chapter 120 do not apply.
  409         9. Must provide that the corporation make its best efforts
  410  to procure catastrophe reinsurance at reasonable rates, to cover
  411  its projected 100-year probable maximum loss as determined by
  412  the board of governors.
  413         10. The policies issued by the corporation Must provide
  414  that if the corporation or the market assistance plan obtains an
  415  offer from an authorized insurer to cover the risk at its
  416  approved rates, the policies issued by the corporation must
  417  provide that the risk is no longer eligible for renewal through
  418  the corporation, except as otherwise provided in this
  419  subsection.
  420         11. Must provide that corporation policies and applications
  421  must include a notice that the corporation policy could, under
  422  this section, be replaced with a policy issued by an authorized
  423  insurer which does not provide coverage identical to the
  424  coverage provided by the corporation. The notice must also
  425  specify that acceptance of corporation coverage creates a
  426  conclusive presumption that the applicant or policyholder is
  427  aware of this potential.
  428         12. May establish, subject to approval by the office,
  429  different eligibility requirements and operational procedures
  430  for any line or type of coverage for any specified county or
  431  area if the board determines that such changes are justified due
  432  to the voluntary market being sufficiently stable and
  433  competitive in such area or for such line or type of coverage
  434  and that consumers who, in good faith, are unable to obtain
  435  insurance through the voluntary market through ordinary methods
  436  continue to have access to coverage from the corporation. If
  437  coverage is sought in connection with a real property transfer,
  438  the requirements and procedures may not provide an effective
  439  date of coverage later than the date of the closing of the
  440  transfer as established by the transferor, the transferee, and,
  441  if applicable, the lender.
  442         13. Must provide that, with respect to the coastal account,
  443  any assessable insurer with a surplus as to policyholders of $25
  444  million or less writing 25 percent or more of its total
  445  countrywide property insurance premiums in this state may
  446  petition the office, within the first 90 days of each calendar
  447  year, to qualify as a limited apportionment company. A regular
  448  assessment levied by the corporation on a limited apportionment
  449  company for a deficit incurred by the corporation for the
  450  coastal account may be paid to the corporation on a monthly
  451  basis as the assessments are collected by the limited
  452  apportionment company from its insureds pursuant to s. 627.3512,
  453  but the regular assessment must be paid in full within 12 months
  454  after being levied by the corporation. A limited apportionment
  455  company shall collect from its policyholders any emergency
  456  assessment imposed under sub-subparagraph (b)3.c. (b)3.d. The
  457  plan must provide that, if the office determines that any
  458  regular assessment will result in an impairment of the surplus
  459  of a limited apportionment company, the office may direct that
  460  all or part of such assessment be deferred as provided in
  461  subparagraph (q)4. However, an emergency assessment to be
  462  collected from policyholders under sub-subparagraph (b)3.c.
  463  (b)3.d. may not be limited or deferred.
  464         14. Must provide that the corporation appoint as its
  465  licensed agents only those agents who also hold an appointment
  466  as defined in s. 626.015(3) with an insurer who at the time of
  467  the agent’s initial appointment by the corporation is authorized
  468  to write and is actually writing personal lines residential
  469  property coverage, commercial residential property coverage, or
  470  commercial nonresidential property coverage within the state.
  471         15. Must provide a premium payment plan option to its
  472  policyholders which, at a minimum, allows for quarterly and
  473  semiannual payment of premiums. A monthly payment plan may, but
  474  is not required to, be offered.
  475         16. Must limit coverage on mobile homes or manufactured
  476  homes built before 1994 to actual cash value of the dwelling
  477  rather than replacement costs of the dwelling. The corporation
  478  shall issue policies for mobile homes or manufactured homes
  479  built before 1994 regardless of the cash value of the dwelling.
  480         17. May provide such limits of coverage as the board
  481  determines, consistent with the requirements of this subsection.
  482         18. May require commercial property to meet specified
  483  hurricane mitigation construction features as a condition of
  484  eligibility for coverage.
  485         19. Must provide that new or renewal policies issued by the
  486  corporation on or after January 1, 2012, which cover sinkhole
  487  loss do not include coverage for any loss to appurtenant
  488  structures, driveways, sidewalks, decks, or patios that are
  489  directly or indirectly caused by sinkhole activity. The
  490  corporation shall exclude such coverage using a notice of
  491  coverage change, which may be included with the policy renewal,
  492  and not by issuance of a notice of nonrenewal of the excluded
  493  coverage upon renewal of the current policy.
  494         20. As of January 1, 2012, must require that the agent
  495  obtain from an applicant for coverage from the corporation an
  496  acknowledgement signed by the applicant, which includes, at a
  497  minimum, the following statement:
  498  
  499               ACKNOWLEDGEMENT OF POTENTIAL SURCHARGE              
  500                      AND ASSESSMENT LIABILITY:                    
  501  
  502         1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
  503  CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
  504  DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
  505  MY POLICY COULD BE SUBJECT TO SURCHARGES THAT, WHICH WILL BE DUE
  506  AND PAYABLE UPON RENEWAL, CANCELLATION, OR TERMINATION OF THE
  507  POLICY, AND THAT THE SURCHARGES COULD BE AS HIGH AS 45 PERCENT
  508  OF MY PREMIUM, OR A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA
  509  LEGISLATURE.
  510         2. I ALSO UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
  511  ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
  512  INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
  513  FLORIDA LEGISLATURE.
  514         3. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
  515  CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
  516  STATE OF FLORIDA.
  517  
  518         a. The corporation shall maintain, in electronic format or
  519  otherwise, a copy of the applicant’s signed acknowledgement and
  520  provide a copy of the statement to the policyholder as part of
  521  the first renewal after the effective date of this subparagraph.
  522         b. The signed acknowledgement form creates a conclusive
  523  presumption that the policyholder understood and accepted his or
  524  her potential surcharge and assessment liability as a
  525  policyholder of the corporation.
  526  
  527  ================= T I T L E  A M E N D M E N T ================
  528         And the title is amended as follows:
  529         Delete line 4
  530  and insert:
  531         627.351, F.S.; requiring the corporation to issue
  532         policies for mobile homes or manufactured homes built
  533         before a certain date; providing that eligible surplus
  534         lines