Florida Senate - 2022                        COMMITTEE AMENDMENT
       Bill No. PCS (646840) for CS for SB 1728
       
       
       
       
       
       
                                Ì892324#Î892324                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  03/02/2022           .                                
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       The Committee on Appropriations (Boyd) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Paragraph (a) of subsection (1) of section
    6  489.147, Florida Statutes, is amended to read:
    7         489.147 Prohibited property insurance practices.—
    8         (1) As used in this section, the term:
    9         (a) “Prohibited advertisement” means any written or
   10  electronic communication by a contractor which that encourages,
   11  instructs, or induces a consumer to contact a contractor or
   12  public adjuster for the purpose of making an insurance claim for
   13  roof damage, if such communication does not state in a font size
   14  of at least 12 points and at least half as large as the largest
   15  font size used in the communication that:
   16         1.The consumer is responsible for payment of any insurance
   17  deductible;
   18         2.It is insurance fraud punishable as a felony of the
   19  third degree for a contractor to pay, waive, or rebate all or
   20  part of an insurance deductible applicable to payment to the
   21  contractor for repairs to property covered by a property
   22  insurance policy; and
   23         3.It is insurance fraud punishable as a felony of the
   24  third degree to intentionally file an insurance claim containing
   25  any false, incomplete, or misleading information.
   26  
   27  The term includes, but is not limited to, door hangers, business
   28  cards, magnets, flyers, pamphlets, and e-mails.
   29         Section 2. Subsection (2) of section 627.021, Florida
   30  Statutes, is amended to read:
   31         627.021 Scope of this part.—
   32         (2) This part does not apply to:
   33         (a) Reinsurance, except joint reinsurance as provided in s.
   34  627.311.
   35         (b) Insurance against loss of or damage to aircraft, their
   36  hulls, accessories, or equipment, or against liability, other
   37  than workers’ compensation and employer’s liability, arising out
   38  of the ownership, maintenance, or use of aircraft.
   39         (c) Insurance of vessels or craft, their cargoes, marine
   40  builders’ risks, marine protection and indemnity, or other risks
   41  commonly insured under marine insurance policies.
   42         (d) Commercial inland marine insurance.
   43         (e) Except as may be specifically stated to apply, surplus
   44  lines insurance placed under the provisions of ss. 626.913
   45  626.937.
   46         Section 3. Paragraphs (a), (b), (c), (n), (q), (x), and
   47  (ii) of subsection (6) of section 627.351, Florida Statutes, are
   48  amended to read:
   49         627.351 Insurance risk apportionment plans.—
   50         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
   51         (a) The public purpose of this subsection is to ensure that
   52  there is an orderly market for property insurance for residents
   53  and businesses of this state.
   54         1. The Legislature finds that private insurers are
   55  unwilling or unable to provide affordable property insurance
   56  coverage in this state to the extent sought and needed. The
   57  absence of affordable property insurance threatens the public
   58  health, safety, and welfare and likewise threatens the economic
   59  health of the state. The state therefore has a compelling public
   60  interest and a public purpose to assist in assuring that
   61  property in this the state is insured and that it is insured at
   62  affordable rates so as to facilitate the remediation,
   63  reconstruction, and replacement of damaged or destroyed property
   64  in order to reduce or avoid the negative effects otherwise
   65  resulting to the public health, safety, and welfare, to the
   66  economy of the state, and to the revenues of the state and local
   67  governments which are needed to provide for the public welfare.
   68  It is necessary, therefore, to provide affordable property
   69  insurance to applicants who are in good faith entitled to
   70  procure insurance through the voluntary market but are unable to
   71  do so. The Legislature intends, therefore, that affordable
   72  property insurance be provided and that it continue to be
   73  provided, as long as necessary, through Citizens Property
   74  Insurance Corporation, a government entity that is an integral
   75  part of the state, and that is not a private insurance company.
   76  To that end, the corporation shall strive to increase the
   77  availability of affordable property insurance in this state,
   78  while achieving efficiencies and economies, and while providing
   79  service to policyholders, applicants, and agents which is no
   80  less than the quality generally provided in the voluntary
   81  market, for the achievement of the foregoing public purposes.
   82  Because it is essential for this government entity to have the
   83  maximum financial resources to pay claims following a
   84  catastrophic hurricane, it is the intent of the Legislature that
   85  the corporation continue to be an integral part of the state and
   86  that the income of the corporation be exempt from federal income
   87  taxation and that interest on the debt obligations issued by the
   88  corporation be exempt from federal income taxation.
   89         2. The Residential Property and Casualty Joint Underwriting
   90  Association originally created by this statute shall be known as
   91  the Citizens Property Insurance Corporation. The corporation
   92  shall provide insurance for residential and commercial property,
   93  for applicants who are entitled, but, in good faith, are unable
   94  to procure insurance through the voluntary market. The
   95  corporation shall operate pursuant to a plan of operation
   96  approved by order of the Financial Services Commission. The plan
   97  is subject to continuous review by the commission. The
   98  commission may, by order, withdraw approval of all or part of a
   99  plan if the commission determines that conditions have changed
  100  since approval was granted and that the purposes of the plan
  101  require changes in the plan. For the purposes of this
  102  subsection, residential coverage includes both personal lines
  103  residential coverage, which consists of the type of coverage
  104  provided by homeowner, mobile home owner, dwelling, tenant,
  105  condominium unit owner, and similar policies; and commercial
  106  lines residential coverage, which consists of the type of
  107  coverage provided by condominium association, apartment
  108  building, and similar policies.
  109         3. With respect to coverage for personal lines residential
  110  structures, and:
  111         a. Effective January 1, 2014, a structure that has a
  112  dwelling replacement cost of $1 million or more, or a single
  113  condominium unit that has a combined dwelling and contents
  114  replacement cost of $1 million or more, is not eligible for
  115  coverage by the corporation. Such dwellings insured by the
  116  corporation on December 31, 2013, may continue to be covered by
  117  the corporation until the end of the policy term. The office
  118  shall approve the method used by the corporation for valuing the
  119  dwelling replacement cost for the purposes of this subparagraph.
  120  If a policyholder is insured by the corporation before being
  121  determined to be ineligible pursuant to this subparagraph and
  122  such policyholder files a lawsuit challenging the determination,
  123  the policyholder may remain insured by the corporation until the
  124  conclusion of the litigation.
  125         b. Effective January 1, 2015, a structure that has a
  126  dwelling replacement cost of $900,000 or more, or a single
  127  condominium unit that has a combined dwelling and contents
  128  replacement cost of $900,000 or more, is not eligible for
  129  coverage by the corporation. Such dwellings insured by the
  130  corporation on December 31, 2014, may continue to be covered by
  131  the corporation only until the end of the policy term.
  132         c. Effective January 1, 2016, a structure that has a
  133  dwelling replacement cost of $800,000 or more, or a single
  134  condominium unit that has a combined dwelling and contents
  135  replacement cost of $800,000 or more, is not eligible for
  136  coverage by the corporation. Such dwellings insured by the
  137  corporation on December 31, 2015, may continue to be covered by
  138  the corporation until the end of the policy term.
  139         d. effective January 1, 2017, a structure that has a
  140  dwelling replacement cost of $700,000 or more, or a single
  141  condominium unit that has a combined dwelling and contents
  142  replacement cost of $700,000 or more, is not eligible for
  143  coverage by the corporation. The corporation must use a method
  144  for valuing the dwelling replacement cost which is approved by
  145  the office Such dwellings insured by the corporation on December
  146  31, 2016, may continue to be covered by the corporation until
  147  the end of the policy term. The requirements of sub
  148  subparagraphs b.-d. do not apply However, in counties where the
  149  office determines there is not a reasonable degree of
  150  competition,. In such counties a personal lines residential
  151  structure that has a dwelling replacement cost of less than $1
  152  million, or a single condominium unit that has a combined
  153  dwelling and contents replacement cost of less than $1 million,
  154  is eligible for coverage by the corporation.
  155         4. It is the intent of the Legislature that policyholders,
  156  applicants, and agents of the corporation receive service and
  157  treatment of the highest possible level but never less than that
  158  generally provided in the voluntary market. It is also intended
  159  that the corporation be held to service standards no less than
  160  those applied to insurers in the voluntary market by the office
  161  with respect to responsiveness, timeliness, customer courtesy,
  162  and overall dealings with policyholders, applicants, or agents
  163  of the corporation.
  164         5.a. Effective January 1, 2009, a personal lines
  165  residential structure that is located in the “wind-borne debris
  166  region,” as defined in s. 1609.2, International Building Code
  167  (2006), and that has an insured value on the structure of
  168  $750,000 or more is not eligible for coverage by the corporation
  169  unless the structure has opening protections as required under
  170  the Florida Building Code for a newly constructed residential
  171  structure in that area. A residential structure is deemed to
  172  comply with this sub-subparagraph if it has shutters or opening
  173  protections on all openings and if such opening protections
  174  complied with the Florida Building Code at the time they were
  175  installed.
  176         b. Any major structure, as defined in s. 161.54(6)(a), that
  177  is newly constructed, or rebuilt, repaired, restored, or
  178  remodeled to increase the total square footage of finished area
  179  by more than 25 percent, pursuant to a permit applied for after
  180  July 1, 2015, is not eligible for coverage by the corporation if
  181  the structure is seaward of the coastal construction control
  182  line established pursuant to s. 161.053 or is within the Coastal
  183  Barrier Resources System as designated by 16 U.S.C. ss. 3501
  184  3510.
  185         6. With respect to wind-only coverage for commercial lines
  186  residential condominiums, effective July 1, 2014, a condominium
  187  shall be deemed ineligible for coverage if 50 percent or more of
  188  the units are rented more than eight times in a calendar year
  189  for a rental agreement period of less than 30 days.
  190         (b)1. All insurers authorized to write one or more subject
  191  lines of business in this state are subject to assessment by the
  192  corporation and, for the purposes of this subsection, are
  193  referred to collectively as “assessable insurers.” Insurers
  194  writing one or more subject lines of business in this state
  195  pursuant to part VIII of chapter 626 are not assessable
  196  insurers; however, insureds who procure one or more subject
  197  lines of business in this state pursuant to part VIII of chapter
  198  626 are subject to assessment by the corporation and are
  199  referred to collectively as “assessable insureds.” An insurer’s
  200  assessment liability begins on the first day of the calendar
  201  year following the year in which the insurer was issued a
  202  certificate of authority to transact insurance for subject lines
  203  of business in this state and terminates 1 year after the end of
  204  the first calendar year during which the insurer no longer holds
  205  a certificate of authority to transact insurance for subject
  206  lines of business in this state.
  207         2.a. All revenues, assets, liabilities, losses, and
  208  expenses of the corporation shall be divided into three separate
  209  accounts as follows:
  210         (I) A personal lines account for personal residential
  211  policies issued by the corporation which provides comprehensive,
  212  multiperil coverage on risks that are not located in areas
  213  eligible for coverage by the Florida Windstorm Underwriting
  214  Association as those areas were defined on January 1, 2002, and
  215  for policies that do not provide coverage for the peril of wind
  216  on risks that are located in such areas;
  217         (II) A commercial lines account for commercial residential
  218  and commercial nonresidential policies issued by the corporation
  219  which provides coverage for basic property perils on risks that
  220  are not located in areas eligible for coverage by the Florida
  221  Windstorm Underwriting Association as those areas were defined
  222  on January 1, 2002, and for policies that do not provide
  223  coverage for the peril of wind on risks that are located in such
  224  areas; and
  225         (III) A coastal account for personal residential policies
  226  and commercial residential and commercial nonresidential
  227  property policies issued by the corporation which provides
  228  coverage for the peril of wind on risks that are located in
  229  areas eligible for coverage by the Florida Windstorm
  230  Underwriting Association as those areas were defined on January
  231  1, 2002. The corporation may offer policies that provide
  232  multiperil coverage and shall offer policies that provide
  233  coverage only for the peril of wind for risks located in areas
  234  eligible for coverage in the coastal account. Effective July 1,
  235  2014, the corporation shall cease offering new commercial
  236  residential policies providing multiperil coverage and shall
  237  instead continue to offer commercial residential wind-only
  238  policies, and may offer commercial residential policies
  239  excluding wind. The corporation may, however, continue to renew
  240  a commercial residential multiperil policy on a building that is
  241  insured by the corporation on June 30, 2014, under a multiperil
  242  policy. In issuing multiperil coverage, the corporation may use
  243  its approved policy forms and rates for the personal lines
  244  account. An applicant or insured who is eligible to purchase a
  245  multiperil policy from the corporation may purchase a multiperil
  246  policy from an authorized insurer without prejudice to the
  247  applicant’s or insured’s eligibility to prospectively purchase a
  248  policy that provides coverage only for the peril of wind from
  249  the corporation. An applicant or insured who is eligible for a
  250  corporation policy that provides coverage only for the peril of
  251  wind may elect to purchase or retain such policy and also
  252  purchase or retain coverage excluding wind from an authorized
  253  insurer without prejudice to the applicant’s or insured’s
  254  eligibility to prospectively purchase a policy that provides
  255  multiperil coverage from the corporation. It is the goal of the
  256  Legislature that there be an overall average savings of 10
  257  percent or more for a policyholder who currently has a wind-only
  258  policy with the corporation, and an ex-wind policy with a
  259  voluntary insurer or the corporation, and who obtains a
  260  multiperil policy from the corporation. It is the intent of the
  261  Legislature that the offer of multiperil coverage in the coastal
  262  account be made and implemented in a manner that does not
  263  adversely affect the tax-exempt status of the corporation or
  264  creditworthiness of or security for currently outstanding
  265  financing obligations or credit facilities of the coastal
  266  account, the personal lines account, or the commercial lines
  267  account. The coastal account must also include quota share
  268  primary insurance under subparagraph (c)2. The area eligible for
  269  coverage under the coastal account also includes the area within
  270  Port Canaveral, which is bordered on the south by the City of
  271  Cape Canaveral, bordered on the west by the Banana River, and
  272  bordered on the north by Federal Government property.
  273         b. The three separate accounts must be maintained as long
  274  as financing obligations entered into by the Florida Windstorm
  275  Underwriting Association or Residential Property and Casualty
  276  Joint Underwriting Association are outstanding, in accordance
  277  with the terms of the corresponding financing documents. If the
  278  financing obligations are no longer outstanding, the corporation
  279  shall may use a single account for all revenues, assets,
  280  liabilities, losses, and expenses of the corporation. Consistent
  281  with this subparagraph and prudent investment policies that
  282  minimize the cost of carrying debt, the board shall exercise its
  283  best efforts to retire existing debt or obtain the approval of
  284  necessary parties to amend the terms of existing debt, so as to
  285  structure the most efficient plan for consolidating the three
  286  separate accounts into a single account.
  287         c. Creditors of the Residential Property and Casualty Joint
  288  Underwriting Association and the accounts specified in sub-sub
  289  subparagraphs a.(I) and (II) may have a claim against, and
  290  recourse to, those accounts and no claim against, or recourse
  291  to, the account referred to in sub-sub-subparagraph a.(III).
  292  Creditors of the Florida Windstorm Underwriting Association have
  293  a claim against, and recourse to, the account referred to in
  294  sub-sub-subparagraph a.(III) and no claim against, or recourse
  295  to, the accounts referred to in sub-sub-subparagraphs a.(I) and
  296  (II).
  297         d. Revenues, assets, liabilities, losses, and expenses not
  298  attributable to particular accounts shall be prorated among the
  299  accounts.
  300         e. The Legislature finds that the revenues of the
  301  corporation are revenues that are necessary to meet the
  302  requirements set forth in documents authorizing the issuance of
  303  bonds under this subsection.
  304         f. The income of the corporation may not inure to the
  305  benefit of any private person.
  306         3. With respect to a deficit in an account:
  307         a. After accounting for the Citizens policyholder surcharge
  308  imposed under sub-subparagraph i., if the remaining projected
  309  deficit incurred in the coastal account in a particular calendar
  310  year:
  311         (I) Is not greater than 2 percent of the aggregate
  312  statewide direct written premium for the subject lines of
  313  business for the prior calendar year, the entire deficit shall
  314  be recovered through regular assessments of assessable insurers
  315  under paragraph (q) and assessable insureds.
  316         (II) Exceeds 2 percent of the aggregate statewide direct
  317  written premium for the subject lines of business for the prior
  318  calendar year, the corporation shall levy regular assessments on
  319  assessable insurers under paragraph (q) and on assessable
  320  insureds in an amount equal to the greater of 2 percent of the
  321  projected deficit or 2 percent of the aggregate statewide direct
  322  written premium for the subject lines of business for the prior
  323  calendar year. Any remaining projected deficit shall be
  324  recovered through emergency assessments under sub-subparagraph
  325  d.
  326         b. Each assessable insurer’s share of the amount being
  327  assessed under sub-subparagraph a. must be in the proportion
  328  that the assessable insurer’s direct written premium for the
  329  subject lines of business for the year preceding the assessment
  330  bears to the aggregate statewide direct written premium for the
  331  subject lines of business for that year. The assessment
  332  percentage applicable to each assessable insured is the ratio of
  333  the amount being assessed under sub-subparagraph a. to the
  334  aggregate statewide direct written premium for the subject lines
  335  of business for the prior year. Assessments levied by the
  336  corporation on assessable insurers under sub-subparagraph a.
  337  must be paid as required by the corporation’s plan of operation
  338  and paragraph (q). Assessments levied by the corporation on
  339  assessable insureds under sub-subparagraph a. shall be collected
  340  by the surplus lines agent at the time the surplus lines agent
  341  collects the surplus lines tax required by s. 626.932, and paid
  342  to the Florida Surplus Lines Service Office at the time the
  343  surplus lines agent pays the surplus lines tax to that office.
  344  Upon receipt of regular assessments from surplus lines agents,
  345  the Florida Surplus Lines Service Office shall transfer the
  346  assessments directly to the corporation as determined by the
  347  corporation.
  348         c. After accounting for the Citizens policyholder surcharge
  349  imposed under sub-subparagraph i., the remaining projected
  350  deficits in the personal lines account and in the commercial
  351  lines account in a particular calendar year shall be recovered
  352  through emergency assessments under sub-subparagraph d.
  353         d. Upon a determination by the board of governors that a
  354  projected deficit in an account exceeds the amount that is
  355  expected to be recovered through regular assessments under sub
  356  subparagraph a., plus the amount that is expected to be
  357  recovered through surcharges under sub-subparagraph i., the
  358  board, after verification by the office, shall levy emergency
  359  assessments for as many years as necessary to cover the
  360  deficits, to be collected by assessable insurers and the
  361  corporation and collected from assessable insureds upon issuance
  362  or renewal of policies for subject lines of business, excluding
  363  National Flood Insurance policies. The amount collected in a
  364  particular year must be a uniform percentage of that year’s
  365  direct written premium for subject lines of business and all
  366  accounts of the corporation, excluding National Flood Insurance
  367  Program policy premiums, as annually determined by the board and
  368  verified by the office. The office shall verify the arithmetic
  369  calculations involved in the board’s determination within 30
  370  days after receipt of the information on which the determination
  371  was based. The office shall notify assessable insurers and the
  372  Florida Surplus Lines Service Office of the date on which
  373  assessable insurers shall begin to collect and assessable
  374  insureds shall begin to pay such assessment. The date must be at
  375  least 90 days after the date the corporation levies emergency
  376  assessments pursuant to this sub-subparagraph. Notwithstanding
  377  any other provision of law, the corporation and each assessable
  378  insurer that writes subject lines of business shall collect
  379  emergency assessments from its policyholders without such
  380  obligation being affected by any credit, limitation, exemption,
  381  or deferment. Emergency assessments levied by the corporation on
  382  assessable insureds shall be collected by the surplus lines
  383  agent at the time the surplus lines agent collects the surplus
  384  lines tax required by s. 626.932 and paid to the Florida Surplus
  385  Lines Service Office at the time the surplus lines agent pays
  386  the surplus lines tax to that office. The emergency assessments
  387  collected shall be transferred directly to the corporation on a
  388  periodic basis as determined by the corporation and held by the
  389  corporation solely in the applicable account. The aggregate
  390  amount of emergency assessments levied for an account in any
  391  calendar year may be less than but may not exceed the greater of
  392  10 percent of the amount needed to cover the deficit, plus
  393  interest, fees, commissions, required reserves, and other costs
  394  associated with financing the original deficit, or 10 percent of
  395  the aggregate statewide direct written premium for subject lines
  396  of business and all accounts of the corporation for the prior
  397  year, plus interest, fees, commissions, required reserves, and
  398  other costs associated with financing the deficit.
  399         e. The corporation may pledge the proceeds of assessments,
  400  projected recoveries from the Florida Hurricane Catastrophe
  401  Fund, other insurance and reinsurance recoverables, policyholder
  402  surcharges and other surcharges, and other funds available to
  403  the corporation as the source of revenue for and to secure bonds
  404  issued under paragraph (q), bonds or other indebtedness issued
  405  under subparagraph (c)3., or lines of credit or other financing
  406  mechanisms issued or created under this subsection, or to retire
  407  any other debt incurred as a result of deficits or events giving
  408  rise to deficits, or in any other way that the board determines
  409  will efficiently recover such deficits. The purpose of the lines
  410  of credit or other financing mechanisms is to provide additional
  411  resources to assist the corporation in covering claims and
  412  expenses attributable to a catastrophe. As used in this
  413  subsection, the term “assessments” includes regular assessments
  414  under sub-subparagraph a. or subparagraph (q)1. and emergency
  415  assessments under sub-subparagraph d. Emergency assessments
  416  collected under sub-subparagraph d. are not part of an insurer’s
  417  rates, are not premium, and are not subject to premium tax,
  418  fees, or commissions; however, failure to pay the emergency
  419  assessment shall be treated as failure to pay premium. The
  420  emergency assessments shall continue as long as any bonds issued
  421  or other indebtedness incurred with respect to a deficit for
  422  which the assessment was imposed remain outstanding, unless
  423  adequate provision has been made for the payment of such bonds
  424  or other indebtedness pursuant to the documents governing such
  425  bonds or indebtedness.
  426         f. As used in this subsection for purposes of any deficit
  427  incurred on or after January 25, 2007, the term “subject lines
  428  of business” means insurance written by assessable insurers or
  429  procured by assessable insureds for all property and casualty
  430  lines of business in this state, but not including workers’
  431  compensation or medical malpractice. As used in this sub
  432  subparagraph, the term “property and casualty lines of business”
  433  includes all lines of business identified on Form 2, Exhibit of
  434  Premiums and Losses, in the annual statement required of
  435  authorized insurers under s. 624.424 and any rule adopted under
  436  this section, except for those lines identified as accident and
  437  health insurance and except for policies written under the
  438  National Flood Insurance Program or the Federal Crop Insurance
  439  Program. For purposes of this sub-subparagraph, the term
  440  “workers’ compensation” includes both workers’ compensation
  441  insurance and excess workers’ compensation insurance.
  442         g. The Florida Surplus Lines Service Office shall determine
  443  annually the aggregate statewide written premium in subject
  444  lines of business procured by assessable insureds and report
  445  that information to the corporation in a form and at a time the
  446  corporation specifies to ensure that the corporation can meet
  447  the requirements of this subsection and the corporation’s
  448  financing obligations.
  449         h. The Florida Surplus Lines Service Office shall verify
  450  the proper application by surplus lines agents of assessment
  451  percentages for regular assessments and emergency assessments
  452  levied under this subparagraph on assessable insureds and assist
  453  the corporation in ensuring the accurate, timely collection and
  454  payment of assessments by surplus lines agents as required by
  455  the corporation.
  456         i. Upon determination by the board of governors that an
  457  account has a projected deficit, the board shall levy a Citizens
  458  policyholder surcharge against all policyholders of the
  459  corporation.
  460         (I) The surcharge shall be levied as a uniform percentage
  461  of the premium for the policy of up to 15 percent of such
  462  premium, which funds shall be used to offset the deficit.
  463         (II) The surcharge is payable upon cancellation or
  464  termination of the policy, upon renewal of the policy, or upon
  465  issuance of a new policy by the corporation within the first 12
  466  months after the date of the levy or the period of time
  467  necessary to fully collect the surcharge amount.
  468         (III) The corporation may not levy any regular assessments
  469  under paragraph (q) pursuant to sub-subparagraph a. or sub
  470  subparagraph b. with respect to a particular year’s deficit
  471  until the corporation has first levied the full amount of the
  472  surcharge authorized by this sub-subparagraph.
  473         (IV) The surcharge is not considered premium and is not
  474  subject to commissions, fees, or premium taxes. However, failure
  475  to pay the surcharge shall be treated as failure to pay premium.
  476         j. If the amount of any assessments or surcharges collected
  477  from corporation policyholders, assessable insurers or their
  478  policyholders, or assessable insureds exceeds the amount of the
  479  deficits, such excess amounts shall be remitted to and retained
  480  by the corporation in a reserve to be used by the corporation,
  481  as determined by the board of governors and approved by the
  482  office, to pay claims or reduce any past, present, or future
  483  plan-year deficits or to reduce outstanding debt.
  484         (c) The corporation’s plan of operation:
  485         1. Must provide for adoption of residential property and
  486  casualty insurance policy forms and commercial residential and
  487  nonresidential property insurance forms, which must be approved
  488  by the office before use. The corporation shall adopt the
  489  following policy forms:
  490         a. Standard personal lines policy forms that are
  491  comprehensive multiperil policies providing full coverage of a
  492  residential property equivalent to the coverage provided in the
  493  private insurance market under an HO-3, HO-4, or HO-6 policy.
  494         b. Basic personal lines policy forms that are policies
  495  similar to an HO-8 policy or a dwelling fire policy that provide
  496  coverage meeting the requirements of the secondary mortgage
  497  market, but which is more limited than the coverage under a
  498  standard policy.
  499         c. Commercial lines residential and nonresidential policy
  500  forms that are generally similar to the basic perils of full
  501  coverage obtainable for commercial residential structures and
  502  commercial nonresidential structures in the admitted voluntary
  503  market.
  504         d. Personal lines and commercial lines residential property
  505  insurance forms that cover the peril of wind only. The forms are
  506  applicable only to residential properties located in areas
  507  eligible for coverage under the coastal account referred to in
  508  sub-subparagraph (b)2.a.
  509         e. Commercial lines nonresidential property insurance forms
  510  that cover the peril of wind only. The forms are applicable only
  511  to nonresidential properties located in areas eligible for
  512  coverage under the coastal account referred to in sub
  513  subparagraph (b)2.a.
  514         f. The corporation may adopt variations of the policy forms
  515  listed in sub-subparagraphs a.-e. which contain more restrictive
  516  coverage.
  517         g. Effective January 1, 2013, the corporation shall offer a
  518  basic personal lines policy similar to an HO-8 policy with
  519  dwelling repair based on common construction materials and
  520  methods.
  521         2. Must provide that the corporation adopt a program in
  522  which the corporation and authorized insurers enter into quota
  523  share primary insurance agreements for hurricane coverage, as
  524  defined in s. 627.4025(2)(a), for eligible risks, and adopt
  525  property insurance forms for eligible risks which cover the
  526  peril of wind only.
  527         a. As used in this subsection, the term:
  528         (I) “Quota share primary insurance” means an arrangement in
  529  which the primary hurricane coverage of an eligible risk is
  530  provided in specified percentages by the corporation and an
  531  authorized insurer. The corporation and authorized insurer are
  532  each solely responsible for a specified percentage of hurricane
  533  coverage of an eligible risk as set forth in a quota share
  534  primary insurance agreement between the corporation and an
  535  authorized insurer and the insurance contract. The
  536  responsibility of the corporation or authorized insurer to pay
  537  its specified percentage of hurricane losses of an eligible
  538  risk, as set forth in the agreement, may not be altered by the
  539  inability of the other party to pay its specified percentage of
  540  losses. Eligible risks that are provided hurricane coverage
  541  through a quota share primary insurance arrangement must be
  542  provided policy forms that set forth the obligations of the
  543  corporation and authorized insurer under the arrangement,
  544  clearly specify the percentages of quota share primary insurance
  545  provided by the corporation and authorized insurer, and
  546  conspicuously and clearly state that the authorized insurer and
  547  the corporation may not be held responsible beyond their
  548  specified percentage of coverage of hurricane losses.
  549         (II) “Eligible risks” means personal lines residential and
  550  commercial lines residential risks that meet the underwriting
  551  criteria of the corporation and are located in areas that were
  552  eligible for coverage by the Florida Windstorm Underwriting
  553  Association on January 1, 2002.
  554         b. The corporation may enter into quota share primary
  555  insurance agreements with authorized insurers at corporation
  556  coverage levels of 90 percent and 50 percent.
  557         c. If the corporation determines that additional coverage
  558  levels are necessary to maximize participation in quota share
  559  primary insurance agreements by authorized insurers, the
  560  corporation may establish additional coverage levels. However,
  561  the corporation’s quota share primary insurance coverage level
  562  may not exceed 90 percent.
  563         d. Any quota share primary insurance agreement entered into
  564  between an authorized insurer and the corporation must provide
  565  for a uniform specified percentage of coverage of hurricane
  566  losses, by county or territory as set forth by the corporation
  567  board, for all eligible risks of the authorized insurer covered
  568  under the agreement.
  569         e. Any quota share primary insurance agreement entered into
  570  between an authorized insurer and the corporation is subject to
  571  review and approval by the office. However, such agreement shall
  572  be authorized only as to insurance contracts entered into
  573  between an authorized insurer and an insured who is already
  574  insured by the corporation for wind coverage.
  575         f. For all eligible risks covered under quota share primary
  576  insurance agreements, the exposure and coverage levels for both
  577  the corporation and authorized insurers shall be reported by the
  578  corporation to the Florida Hurricane Catastrophe Fund. For all
  579  policies of eligible risks covered under such agreements, the
  580  corporation and the authorized insurer must maintain complete
  581  and accurate records for the purpose of exposure and loss
  582  reimbursement audits as required by fund rules. The corporation
  583  and the authorized insurer shall each maintain duplicate copies
  584  of policy declaration pages and supporting claims documents.
  585         g. The corporation board shall establish in its plan of
  586  operation standards for quota share agreements which ensure that
  587  there is no discriminatory application among insurers as to the
  588  terms of the agreements, pricing of the agreements, incentive
  589  provisions if any, and consideration paid for servicing policies
  590  or adjusting claims.
  591         h. The quota share primary insurance agreement between the
  592  corporation and an authorized insurer must set forth the
  593  specific terms under which coverage is provided, including, but
  594  not limited to, the sale and servicing of policies issued under
  595  the agreement by the insurance agent of the authorized insurer
  596  producing the business, the reporting of information concerning
  597  eligible risks, the payment of premium to the corporation, and
  598  arrangements for the adjustment and payment of hurricane claims
  599  incurred on eligible risks by the claims adjuster and personnel
  600  of the authorized insurer. Entering into a quota sharing
  601  insurance agreement between the corporation and an authorized
  602  insurer is voluntary and at the discretion of the authorized
  603  insurer.
  604         3. May provide that the corporation may employ or otherwise
  605  contract with individuals or other entities to provide
  606  administrative or professional services that may be appropriate
  607  to effectuate the plan. The corporation may borrow funds by
  608  issuing bonds or by incurring other indebtedness, and shall have
  609  other powers reasonably necessary to effectuate the requirements
  610  of this subsection, including, without limitation, the power to
  611  issue bonds and incur other indebtedness in order to refinance
  612  outstanding bonds or other indebtedness. The corporation may
  613  seek judicial validation of its bonds or other indebtedness
  614  under chapter 75. The corporation may issue bonds or incur other
  615  indebtedness, or have bonds issued on its behalf by a unit of
  616  local government pursuant to subparagraph (q)2. in the absence
  617  of a hurricane or other weather-related event, upon a
  618  determination by the corporation, subject to approval by the
  619  office, that such action would enable it to efficiently meet the
  620  financial obligations of the corporation and that such
  621  financings are reasonably necessary to effectuate the
  622  requirements of this subsection. The corporation may take all
  623  actions needed to facilitate tax-free status for such bonds or
  624  indebtedness, including formation of trusts or other affiliated
  625  entities. The corporation may pledge assessments, projected
  626  recoveries from the Florida Hurricane Catastrophe Fund, other
  627  reinsurance recoverables, policyholder surcharges and other
  628  surcharges, and other funds available to the corporation as
  629  security for bonds or other indebtedness. In recognition of s.
  630  10, Art. I of the State Constitution, prohibiting the impairment
  631  of obligations of contracts, it is the intent of the Legislature
  632  that no action be taken whose purpose is to impair any bond
  633  indenture or financing agreement or any revenue source committed
  634  by contract to such bond or other indebtedness.
  635         4. Must require that the corporation operate subject to the
  636  supervision and approval of a board of governors consisting of
  637  nine individuals who are residents of this state and who are
  638  from different geographical areas of the state, one of whom is
  639  appointed by the Governor and serves solely to advocate on
  640  behalf of the consumer. The appointment of a consumer
  641  representative by the Governor is deemed to be within the scope
  642  of the exemption provided in s. 112.313(7)(b) and is in addition
  643  to the appointments authorized under sub-subparagraph a.
  644         a. The Governor, the Chief Financial Officer, the President
  645  of the Senate, and the Speaker of the House of Representatives
  646  shall each appoint two members of the board. At least one of the
  647  two members appointed by each appointing officer must have
  648  demonstrated expertise in insurance and be deemed to be within
  649  the scope of the exemption provided in s. 112.313(7)(b) at the
  650  time of appointment or reappointment. The Chief Financial
  651  Officer shall designate one of the appointees as chair. On or
  652  after July 1, 2022, an appointee designated as chair must have
  653  demonstrated expertise in insurance or must have at least 1 year
  654  of experience serving on the board of governors. All board
  655  members serve at the pleasure of the appointing officer. All
  656  members of the board are subject to removal at will by the
  657  officers who appointed them. All board members, including the
  658  chair, must be appointed to serve for 3-year terms beginning
  659  annually on a date designated by the plan. However, for the
  660  first term beginning on or after July 1, 2009, each appointing
  661  officer shall appoint one member of the board for a 2-year term
  662  and one member for a 3-year term. A board vacancy shall be
  663  filled for the unexpired term by the appointing officer. The
  664  Chief Financial Officer shall appoint a technical advisory group
  665  to provide information and advice to the board in connection
  666  with the board’s duties under this subsection. The executive
  667  director and senior managers of the corporation shall be engaged
  668  by the board and serve at the pleasure of the board. The
  669  executive director must, at the time of the appointment, have
  670  the experience, character, and qualifications required under s.
  671  624.404(3) to serve as the chief executive officer of an
  672  insurer. Any executive director appointed on or after July 1,
  673  2006, is subject to confirmation by the Senate. The executive
  674  director is responsible for employing other staff as the
  675  corporation may require, subject to review and concurrence by
  676  the board. As used in this sub-subparagraph, the term
  677  “demonstrated expertise in insurance” means at least 10 years’
  678  experience:
  679         (I)In property and casualty insurance as a full-time
  680  employee, officer, or owner of a licensed insurance agency or an
  681  insurer authorized to transact property insurance in this state;
  682  or
  683         (II)As an insurance regulator or as an executive or
  684  officer of an insurance trade association.
  685         b. The board shall create a Market Accountability Advisory
  686  Committee to assist the corporation in developing awareness of
  687  its rates and its customer and agent service levels in
  688  relationship to the voluntary market insurers writing similar
  689  coverage.
  690         (I) The members of the advisory committee consist of the
  691  following 11 persons, one of whom must be elected chair by the
  692  members of the committee: four representatives, one appointed by
  693  the Florida Association of Insurance Agents, one by the Florida
  694  Association of Insurance and Financial Advisors, one by the
  695  Professional Insurance Agents of Florida, and one by the Latin
  696  American Association of Insurance Agencies; three
  697  representatives appointed by the insurers with the three highest
  698  voluntary market share of residential property insurance
  699  business in the state; one representative from the Office of
  700  Insurance Regulation; one consumer appointed by the board who is
  701  insured by the corporation at the time of appointment to the
  702  committee; one representative appointed by the Florida
  703  Association of Realtors; and one representative appointed by the
  704  Florida Bankers Association. All members shall be appointed to
  705  3-year terms and may serve for consecutive terms.
  706         (II) The committee shall report to the corporation at each
  707  board meeting on insurance market issues which may include rates
  708  and rate competition with the voluntary market; service,
  709  including policy issuance, claims processing, and general
  710  responsiveness to policyholders, applicants, and agents; and
  711  matters relating to depopulation.
  712         5. Must provide a procedure for determining the eligibility
  713  of a risk for coverage, as follows:
  714         a. Subject to s. 627.3517, with respect to personal lines
  715  residential risks, if the risk is offered coverage from an
  716  authorized insurer at the insurer’s approved rate under a
  717  standard policy including wind coverage or, if consistent with
  718  the insurer’s underwriting rules as filed with the office, a
  719  basic policy including wind coverage, for a new application to
  720  the corporation for coverage, the risk is not eligible for any
  721  policy issued by the corporation unless the premium for coverage
  722  from the authorized insurer is more than 20 percent greater than
  723  the premium for comparable coverage from the corporation.
  724  Whenever an offer of coverage for a personal lines residential
  725  risk is received for a policyholder of the corporation at
  726  renewal from an authorized insurer, if the offer is equal to or
  727  less than the corporation’s renewal premium for comparable
  728  coverage, the risk is not eligible for coverage with the
  729  corporation unless the premium for coverage from the authorized
  730  insurer is more than 20 percent greater than the renewal premium
  731  for comparable coverage from the corporation. If the risk is not
  732  able to obtain such offer, the risk is eligible for a standard
  733  policy including wind coverage or a basic policy including wind
  734  coverage issued by the corporation; however, if the risk could
  735  not be insured under a standard policy including wind coverage
  736  regardless of market conditions, the risk is eligible for a
  737  basic policy including wind coverage unless rejected under
  738  subparagraph 8. However, a policyholder removed from the
  739  corporation through an assumption agreement remains eligible for
  740  coverage from the corporation until the end of the assumption
  741  period. The corporation shall determine the type of policy to be
  742  provided on the basis of objective standards specified in the
  743  underwriting manual and based on generally accepted underwriting
  744  practices.
  745         (I) If the risk accepts an offer of coverage through the
  746  market assistance plan or through a mechanism established by the
  747  corporation other than a plan established by s. 627.3518, before
  748  a policy is issued to the risk by the corporation or during the
  749  first 30 days of coverage by the corporation, and the producing
  750  agent who submitted the application to the plan or to the
  751  corporation is not currently appointed by the insurer, the
  752  insurer shall:
  753         (A) Pay to the producing agent of record of the policy for
  754  the first year, an amount that is the greater of the insurer’s
  755  usual and customary commission for the type of policy written or
  756  a fee equal to the usual and customary commission of the
  757  corporation; or
  758         (B) Offer to allow the producing agent of record of the
  759  policy to continue servicing the policy for at least 1 year and
  760  offer to pay the agent the greater of the insurer’s or the
  761  corporation’s usual and customary commission for the type of
  762  policy written.
  763  
  764  If the producing agent is unwilling or unable to accept
  765  appointment, the new insurer shall pay the agent in accordance
  766  with sub-sub-sub-subparagraph (A).
  767         (II) If the corporation enters into a contractual agreement
  768  for a take-out plan, the producing agent of record of the
  769  corporation policy is entitled to retain any unearned commission
  770  on the policy, and the insurer shall:
  771         (A) Pay to the producing agent of record, for the first
  772  year, an amount that is the greater of the insurer’s usual and
  773  customary commission for the type of policy written or a fee
  774  equal to the usual and customary commission of the corporation;
  775  or
  776         (B) Offer to allow the producing agent of record to
  777  continue servicing the policy for at least 1 year and offer to
  778  pay the agent the greater of the insurer’s or the corporation’s
  779  usual and customary commission for the type of policy written.
  780  
  781  If the producing agent is unwilling or unable to accept
  782  appointment, the new insurer shall pay the agent in accordance
  783  with sub-sub-sub-subparagraph (A).
  784         b. With respect to commercial lines residential risks, for
  785  a new application to the corporation for coverage, if the risk
  786  is offered coverage under a policy including wind coverage from
  787  an authorized insurer at its approved rate, the risk is not
  788  eligible for a policy issued by the corporation unless the
  789  premium for coverage from the authorized insurer is more than 20
  790  15 percent greater than the premium for comparable coverage from
  791  the corporation. Whenever an offer of coverage for a commercial
  792  lines residential risk is received for a policyholder of the
  793  corporation at renewal from an authorized insurer, if the offer
  794  is equal to or less than the corporation’s renewal premium for
  795  comparable coverage, the risk is not eligible for coverage with
  796  the corporation unless the premium for coverage from the
  797  authorized insurer is more than 20 percent greater than the
  798  renewal premium for comparable coverage from the corporation. If
  799  the risk is not able to obtain any such offer, the risk is
  800  eligible for a policy including wind coverage issued by the
  801  corporation. However, a policyholder removed from the
  802  corporation through an assumption agreement remains eligible for
  803  coverage from the corporation until the end of the assumption
  804  period.
  805         (I) If the risk accepts an offer of coverage through the
  806  market assistance plan or through a mechanism established by the
  807  corporation other than a plan established by s. 627.3518, before
  808  a policy is issued to the risk by the corporation or during the
  809  first 30 days of coverage by the corporation, and the producing
  810  agent who submitted the application to the plan or the
  811  corporation is not currently appointed by the insurer, the
  812  insurer shall:
  813         (A) Pay to the producing agent of record of the policy, for
  814  the first year, an amount that is the greater of the insurer’s
  815  usual and customary commission for the type of policy written or
  816  a fee equal to the usual and customary commission of the
  817  corporation; or
  818         (B) Offer to allow the producing agent of record of the
  819  policy to continue servicing the policy for at least 1 year and
  820  offer to pay the agent the greater of the insurer’s or the
  821  corporation’s usual and customary commission for the type of
  822  policy written.
  823  
  824  If the producing agent is unwilling or unable to accept
  825  appointment, the new insurer shall pay the agent in accordance
  826  with sub-sub-sub-subparagraph (A).
  827         (II) If the corporation enters into a contractual agreement
  828  for a take-out plan, the producing agent of record of the
  829  corporation policy is entitled to retain any unearned commission
  830  on the policy, and the insurer shall:
  831         (A) Pay to the producing agent of record, for the first
  832  year, an amount that is the greater of the insurer’s usual and
  833  customary commission for the type of policy written or a fee
  834  equal to the usual and customary commission of the corporation;
  835  or
  836         (B) Offer to allow the producing agent of record to
  837  continue servicing the policy for at least 1 year and offer to
  838  pay the agent the greater of the insurer’s or the corporation’s
  839  usual and customary commission for the type of policy written.
  840  
  841  If the producing agent is unwilling or unable to accept
  842  appointment, the new insurer shall pay the agent in accordance
  843  with sub-sub-sub-subparagraph (A).
  844         c. For purposes of determining comparable coverage under
  845  sub-subparagraphs a. and b., the comparison must be based on
  846  those forms and coverages that are reasonably comparable. The
  847  corporation may rely on a determination of comparable coverage
  848  and premium made by the producing agent who submits the
  849  application to the corporation, made in the agent’s capacity as
  850  the corporation’s agent. A comparison may be made solely of the
  851  premium with respect to the main building or structure only on
  852  the following basis: the same coverage A or other building
  853  limits; the same percentage hurricane deductible that applies on
  854  an annual basis or that applies to each hurricane for commercial
  855  residential property; the same percentage of ordinance and law
  856  coverage, if the same limit is offered by both the corporation
  857  and the authorized insurer; the same mitigation credits, to the
  858  extent the same types of credits are offered both by the
  859  corporation and the authorized insurer; the same method for loss
  860  payment, such as replacement cost or actual cash value, if the
  861  same method is offered both by the corporation and the
  862  authorized insurer in accordance with underwriting rules; and
  863  any other form or coverage that is reasonably comparable as
  864  determined by the board. If an application is submitted to the
  865  corporation for wind-only coverage in the coastal account, the
  866  premium for the corporation’s wind-only policy plus the premium
  867  for the ex-wind policy that is offered by an authorized insurer
  868  to the applicant must be compared to the premium for multiperil
  869  coverage offered by an authorized insurer, subject to the
  870  standards for comparison specified in this subparagraph. If the
  871  corporation or the applicant requests from the authorized
  872  insurer a breakdown of the premium of the offer by types of
  873  coverage so that a comparison may be made by the corporation or
  874  its agent and the authorized insurer refuses or is unable to
  875  provide such information, the corporation may treat the offer as
  876  not being an offer of coverage from an authorized insurer at the
  877  insurer’s approved rate.
  878         6. Must include rules for classifications of risks and
  879  rates.
  880         7. Must provide that if premium and investment income for
  881  an account attributable to a particular calendar year are in
  882  excess of projected losses and expenses for the account
  883  attributable to that year, such excess shall be held in surplus
  884  in the account. Such surplus must be available to defray
  885  deficits in that account as to future years and used for that
  886  purpose before assessing assessable insurers and assessable
  887  insureds as to any calendar year.
  888         8. Must provide objective criteria and procedures to be
  889  uniformly applied to all applicants in determining whether an
  890  individual risk is so hazardous as to be uninsurable. In making
  891  this determination and in establishing the criteria and
  892  procedures, the following must be considered:
  893         a. Whether the likelihood of a loss for the individual risk
  894  is substantially higher than for other risks of the same class;
  895  and
  896         b. Whether the uncertainty associated with the individual
  897  risk is such that an appropriate premium cannot be determined.
  898  
  899  The acceptance or rejection of a risk by the corporation shall
  900  be construed as the private placement of insurance, and the
  901  provisions of chapter 120 do not apply.
  902         9. Must provide that the corporation make its best efforts
  903  to procure catastrophe reinsurance at reasonable rates, to cover
  904  its projected 100-year probable maximum loss as determined by
  905  the board of governors. If catastrophe reinsurance is not
  906  available at reasonable rates, the corporation need not purchase
  907  it, but the corporation shall include the costs of reinsurance
  908  to cover its projected 100-year probable maximum loss in its
  909  rate calculations even if it does not purchase catastrophe
  910  reinsurance.
  911         10. The policies issued by the corporation must provide
  912  that if the corporation or the market assistance plan obtains an
  913  offer from an authorized insurer to cover the risk at its
  914  approved rates, the risk is no longer eligible for renewal
  915  through the corporation, except as otherwise provided in this
  916  subsection.
  917         11. Corporation policies and applications must include a
  918  notice that the corporation policy could, under this section, be
  919  replaced with a policy issued by an authorized insurer which
  920  does not provide coverage identical to the coverage provided by
  921  the corporation. The notice must also specify that acceptance of
  922  corporation coverage creates a conclusive presumption that the
  923  applicant or policyholder is aware of this potential.
  924         12. May establish, subject to approval by the office,
  925  different eligibility requirements and operational procedures
  926  for any line or type of coverage for any specified county or
  927  area if the board determines that such changes are justified due
  928  to the voluntary market being sufficiently stable and
  929  competitive in such area or for such line or type of coverage
  930  and that consumers who, in good faith, are unable to obtain
  931  insurance through the voluntary market through ordinary methods
  932  continue to have access to coverage from the corporation. If
  933  coverage is sought in connection with a real property transfer,
  934  the requirements and procedures may not provide an effective
  935  date of coverage later than the date of the closing of the
  936  transfer as established by the transferor, the transferee, and,
  937  if applicable, the lender.
  938         13. Must provide that, with respect to the coastal account,
  939  any assessable insurer with a surplus as to policyholders of $25
  940  million or less writing 25 percent or more of its total
  941  countrywide property insurance premiums in this state may
  942  petition the office, within the first 90 days of each calendar
  943  year, to qualify as a limited apportionment company. A regular
  944  assessment levied by the corporation on a limited apportionment
  945  company for a deficit incurred by the corporation for the
  946  coastal account may be paid to the corporation on a monthly
  947  basis as the assessments are collected by the limited
  948  apportionment company from its insureds, but a limited
  949  apportionment company must begin collecting the regular
  950  assessments not later than 90 days after the regular assessments
  951  are levied by the corporation, and the regular assessments must
  952  be paid in full within 15 months after being levied by the
  953  corporation. A limited apportionment company shall collect from
  954  its policyholders any emergency assessment imposed under sub
  955  subparagraph (b)3.d. The plan must provide that, if the office
  956  determines that any regular assessment will result in an
  957  impairment of the surplus of a limited apportionment company,
  958  the office may direct that all or part of such assessment be
  959  deferred as provided in subparagraph (q)4. However, an emergency
  960  assessment to be collected from policyholders under sub
  961  subparagraph (b)3.d. may not be limited or deferred.
  962         14. Must provide that the corporation appoint as its
  963  licensed agents only those agents who throughout such
  964  appointments also hold an appointment as defined in s. 626.015
  965  by an insurer who is authorized to write and is actually writing
  966  or renewing personal lines residential property coverage,
  967  commercial residential property coverage, or commercial
  968  nonresidential property coverage within the state.
  969         15. Must provide a premium payment plan option to its
  970  policyholders which, at a minimum, allows for quarterly and
  971  semiannual payment of premiums. A monthly payment plan may, but
  972  is not required to, be offered.
  973         16. Must limit coverage on mobile homes or manufactured
  974  homes built before 1994 to actual cash value of the dwelling
  975  rather than replacement costs of the dwelling.
  976         17. Must provide coverage for manufactured or mobile home
  977  dwellings. Such coverage must also include the following
  978  attached structures:
  979         a. Screened enclosures that are aluminum framed or screened
  980  enclosures that are not covered by the same or substantially the
  981  same materials as those of the primary dwelling;
  982         b. Carports that are aluminum or carports that are not
  983  covered by the same or substantially the same materials as those
  984  of the primary dwelling; and
  985         c. Patios that have a roof covering that is constructed of
  986  materials that are not the same or substantially the same
  987  materials as those of the primary dwelling.
  988  
  989  The corporation shall make available a policy for mobile homes
  990  or manufactured homes for a minimum insured value of at least
  991  $3,000.
  992         18. May provide such limits of coverage as the board
  993  determines, consistent with the requirements of this subsection.
  994         19. May require commercial property to meet specified
  995  hurricane mitigation construction features as a condition of
  996  eligibility for coverage.
  997         20. Must provide that new or renewal policies issued by the
  998  corporation on or after January 1, 2012, which cover sinkhole
  999  loss do not include coverage for any loss to appurtenant
 1000  structures, driveways, sidewalks, decks, or patios that are
 1001  directly or indirectly caused by sinkhole activity. The
 1002  corporation shall exclude such coverage using a notice of
 1003  coverage change, which may be included with the policy renewal,
 1004  and not by issuance of a notice of nonrenewal of the excluded
 1005  coverage upon renewal of the current policy.
 1006         21. As of January 1, 2012, must require that the agent
 1007  obtain from an applicant for coverage from the corporation an
 1008  acknowledgment signed by the applicant, which includes, at a
 1009  minimum, the following statement:
 1010  
 1011                ACKNOWLEDGMENT OF POTENTIAL SURCHARGE              
 1012                      AND ASSESSMENT LIABILITY:                    
 1013  
 1014         1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
 1015  CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
 1016  DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
 1017  MY POLICY COULD BE SUBJECT TO SURCHARGES, WHICH WILL BE DUE AND
 1018  PAYABLE UPON RENEWAL, CANCELLATION, OR TERMINATION OF THE
 1019  POLICY, AND THAT THE SURCHARGES COULD BE AS HIGH AS 45 PERCENT
 1020  OF MY PREMIUM, OR A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA
 1021  LEGISLATURE.
 1022         2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
 1023  SURCHARGE, WHICH COULD BE AS HIGH AS 45 PERCENT OF MY PREMIUM,
 1024  BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND THAT TO
 1025  BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN
 1026  PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR RENEWING COVERAGE
 1027  WITH CITIZENS. I UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES
 1028  ARE REGULATED AND APPROVED BY THE STATE.
 1029         3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
 1030  ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
 1031  INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
 1032  FLORIDA LEGISLATURE.
 1033         4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
 1034  CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
 1035  STATE OF FLORIDA.
 1036  
 1037         a. The corporation shall maintain, in electronic format or
 1038  otherwise, a copy of the applicant’s signed acknowledgment and
 1039  provide a copy of the statement to the policyholder as part of
 1040  the first renewal after the effective date of this subparagraph.
 1041         b. The signed acknowledgment form creates a conclusive
 1042  presumption that the policyholder understood and accepted his or
 1043  her potential surcharge and assessment liability as a
 1044  policyholder of the corporation.
 1045         (n)1. Rates for coverage provided by the corporation must
 1046  be actuarially sound and subject to s. 627.062, except as
 1047  otherwise provided in this paragraph. The corporation shall file
 1048  its recommended rates with the office at least annually. The
 1049  corporation shall provide any additional information regarding
 1050  the rates which the office requires. The office shall consider
 1051  the recommendations of the board and issue a final order
 1052  establishing the rates for the corporation within 45 days after
 1053  the recommended rates are filed. The corporation may not pursue
 1054  an administrative challenge or judicial review of the final
 1055  order of the office.
 1056         2. In addition to the rates otherwise determined pursuant
 1057  to this paragraph, the corporation shall impose and collect an
 1058  amount equal to the premium tax provided in s. 624.509 to
 1059  augment the financial resources of the corporation.
 1060         3. After the public hurricane loss-projection model under
 1061  s. 627.06281 has been found to be accurate and reliable by the
 1062  Florida Commission on Hurricane Loss Projection Methodology, the
 1063  model shall be considered when establishing the windstorm
 1064  portion of the corporation’s rates. The corporation may use the
 1065  public model results in combination with the results of private
 1066  models to calculate rates for the windstorm portion of the
 1067  corporation’s rates. This subparagraph does not require or allow
 1068  the corporation to adopt rates lower than the rates otherwise
 1069  required or allowed by this paragraph.
 1070         4. The corporation must make a recommended actuarially
 1071  sound rate filing for each personal and commercial line of
 1072  business it writes.
 1073         5. Notwithstanding the board’s recommended rates and the
 1074  office’s final order regarding the corporation’s filed rates
 1075  under subparagraph 1., the corporation shall annually implement
 1076  a rate increase which, except for sinkhole coverage, does not
 1077  exceed the following for any single personal lines residential
 1078  policy issued by the corporation that covers an insured’s
 1079  primary residence, and any single commercial lines residential
 1080  policy issued by the corporation, excluding coverage changes and
 1081  surcharges:
 1082         a. Eleven percent for 2022.
 1083         b. Twelve percent for 2023.
 1084         c. Thirteen percent for 2024.
 1085         d. Fourteen percent for 2025.
 1086         e. Fifteen percent for 2026 and all subsequent years.
 1087         6. The corporation may also implement an increase to
 1088  reflect the effect on the corporation of the cash buildup factor
 1089  pursuant to s. 215.555(5)(b).
 1090         7. The corporation’s implementation of rates as prescribed
 1091  in subparagraph 5. shall cease for any line of business written
 1092  by the corporation upon the corporation’s implementation of
 1093  actuarially sound rates. Thereafter, the corporation shall
 1094  annually make a recommended actuarially sound rate filing for
 1095  each commercial and personal line of business the corporation
 1096  writes.
 1097         8.Any new personal lines residential policy written by the
 1098  corporation with an effective date on or after January 1, 2023,
 1099  which covers a risk for which the immediately preceding policy
 1100  covering such risk was written by an unsound insurer shall be
 1101  charged a premium for coverage that is the higher of the last
 1102  premium amount charged by the unsound insurer or the premium
 1103  charged by the corporation applicable to the policy. Premiums
 1104  established by the unsound insurer shall remain unchanged,
 1105  except for adjustments for coverage changes at renewal, until
 1106  such time as the corporation’s premium for that policy exceeds
 1107  this amount and thus the policy becomes subject to the
 1108  corporation’s annually approved rate.
 1109         9.As used in this paragraph, the term:
 1110         a.“Primary residence” means the dwelling that the insured
 1111  has represented as their permanent home on the insurance
 1112  application or otherwise to the corporation.
 1113         b.“Unsound insurer” means an insurer determined by the
 1114  Office of Insurance Regulation to be in unsound condition as
 1115  defined in s. 624.80(2) or an insurer placed in receivership
 1116  under chapter 631.
 1117         (q)1. The corporation shall certify to the office its needs
 1118  for annual assessments as to a particular calendar year, and for
 1119  any interim assessments that it deems to be necessary to sustain
 1120  operations as to a particular year pending the receipt of annual
 1121  assessments. Upon verification, the office shall approve such
 1122  certification, and the corporation shall levy such annual or
 1123  interim assessments. Such assessments shall be prorated as
 1124  provided in paragraph (b). The corporation shall take all
 1125  reasonable and prudent steps necessary to collect the amount of
 1126  assessments due from each assessable insurer, including, if
 1127  prudent, filing suit to collect the assessments, and the office
 1128  may provide such assistance to the corporation it deems
 1129  appropriate. If the corporation is unable to collect an
 1130  assessment from any assessable insurer, the uncollected
 1131  assessments shall be levied as an additional assessment against
 1132  the assessable insurers and any assessable insurer required to
 1133  pay an additional assessment as a result of such failure to pay
 1134  shall have a cause of action against such nonpaying assessable
 1135  insurer. Assessments shall be included as an appropriate factor
 1136  in the making of rates. The failure of a surplus lines agent to
 1137  collect and remit any regular or emergency assessment levied by
 1138  the corporation is considered to be a violation of s. 626.936
 1139  and subjects the surplus lines agent to the penalties provided
 1140  in that section.
 1141         2. The governing body of any unit of local government, any
 1142  residents of which are insured by the corporation, may issue
 1143  bonds as defined in s. 125.013 or s. 166.101 from time to time
 1144  to fund an assistance program, in conjunction with the
 1145  corporation, for the purpose of defraying deficits of the
 1146  corporation. In order to avoid needless and indiscriminate
 1147  proliferation, duplication, and fragmentation of such assistance
 1148  programs, any unit of local government, any residents of which
 1149  are insured by the corporation, may provide for the payment of
 1150  losses, regardless of whether or not the losses occurred within
 1151  or outside of the territorial jurisdiction of the local
 1152  government. Revenue bonds under this subparagraph may not be
 1153  issued until validated pursuant to chapter 75, unless a state of
 1154  emergency is declared by executive order or proclamation of the
 1155  Governor pursuant to s. 252.36 making such findings as are
 1156  necessary to determine that it is in the best interests of, and
 1157  necessary for, the protection of the public health, safety, and
 1158  general welfare of residents of this state and declaring it an
 1159  essential public purpose to permit certain municipalities or
 1160  counties to issue such bonds as will permit relief to claimants
 1161  and policyholders of the corporation. Any such unit of local
 1162  government may enter into such contracts with the corporation
 1163  and with any other entity created pursuant to this subsection as
 1164  are necessary to carry out this paragraph. Any bonds issued
 1165  under this subparagraph shall be payable from and secured by
 1166  moneys received by the corporation from emergency assessments
 1167  under sub-subparagraph (b)3.d., and assigned and pledged to or
 1168  on behalf of the unit of local government for the benefit of the
 1169  holders of such bonds. The funds, credit, property, and taxing
 1170  power of the state or of the unit of local government may shall
 1171  not be pledged for the payment of such bonds.
 1172         3.a. The corporation shall adopt one or more programs
 1173  subject to approval by the office for the reduction of both new
 1174  and renewal writings in the corporation. Beginning January 1,
 1175  2008, any program the corporation adopts for the payment of
 1176  bonuses to an insurer for each risk the insurer removes from the
 1177  corporation shall comply with s. 627.3511(2) and may not exceed
 1178  the amount referenced in s. 627.3511(2) for each risk removed.
 1179  The corporation may consider any prudent and not unfairly
 1180  discriminatory approach to reducing corporation writings, and
 1181  may adopt a credit against assessment liability or other
 1182  liability that provides an incentive for insurers to take risks
 1183  out of the corporation and to keep risks out of the corporation
 1184  by maintaining or increasing voluntary writings in counties or
 1185  areas in which corporation risks are highly concentrated and a
 1186  program to provide a formula under which an insurer voluntarily
 1187  taking risks out of the corporation by maintaining or increasing
 1188  voluntary writings will be relieved wholly or partially from
 1189  assessments under sub-subparagraph (b)3.a. However, any “take
 1190  out bonus” or payment to an insurer must be conditioned on the
 1191  property being insured for at least 5 years by the insurer,
 1192  unless canceled or nonrenewed by the policyholder. If the policy
 1193  is canceled or nonrenewed by the policyholder before the end of
 1194  the 5-year period, the amount of the take-out bonus must be
 1195  prorated for the time period the policy was insured. When the
 1196  corporation enters into a contractual agreement for a take-out
 1197  plan, the producing agent of record of the corporation policy is
 1198  entitled to retain any unearned commission on such policy, and
 1199  the insurer shall either:
 1200         (I) Pay to the producing agent of record of the policy, for
 1201  the first year, an amount which is the greater of the insurer’s
 1202  usual and customary commission for the type of policy written or
 1203  a policy fee equal to the usual and customary commission of the
 1204  corporation; or
 1205         (II) Offer to allow the producing agent of record of the
 1206  policy to continue servicing the policy for a period of not less
 1207  than 1 year and offer to pay the agent the insurer’s usual and
 1208  customary commission for the type of policy written. If the
 1209  producing agent is unwilling or unable to accept appointment by
 1210  the new insurer, the new insurer shall pay the agent in
 1211  accordance with sub-sub-subparagraph (I).
 1212         b. Any credit or exemption from regular assessments adopted
 1213  under this subparagraph shall last no longer than the 3 years
 1214  following the cancellation or expiration of the policy by the
 1215  corporation. With the approval of the office, the board may
 1216  extend such credits for an additional year if the insurer
 1217  guarantees an additional year of renewability for all policies
 1218  removed from the corporation, or for 2 additional years if the
 1219  insurer guarantees 2 additional years of renewability for all
 1220  policies so removed.
 1221         c. There shall be no credit, limitation, exemption, or
 1222  deferment from emergency assessments to be collected from
 1223  policyholders pursuant to sub-subparagraph (b)3.d.
 1224         d. Notwithstanding any other law, for purposes of a
 1225  depopulation, take-out, or keep-out program adopted by the
 1226  corporation, including an initial or renewal offer of coverage
 1227  made to a policyholder removed from the corporation pursuant to
 1228  such program, an eligible surplus lines insurer may participate
 1229  in the program in the same manner and on the same terms as an
 1230  authorized insurer, except as provided under this sub
 1231  subparagraph.
 1232         (I)The policy count of the corporation must be more than
 1233  700,000 within the 30 days before the time a take-out offer is
 1234  made by a surplus lines insurer.
 1235         (II) To qualify for participation, the surplus lines
 1236  insurer must first obtain approval from the office for its
 1237  depopulation, take-out, or keep-out plan and then comply with
 1238  all of the corporation’s requirements for the plan applicable to
 1239  admitted insurers and with all statutory provisions applicable
 1240  to the removal of policies from the corporation.
 1241         (III) In considering a surplus lines insurer’s request for
 1242  approval for its plan, the office shall determine whether the
 1243  surplus lines insurer meets the following requirements:
 1244         (A) Maintains a surplus of $50 million on a company or
 1245  pooled basis;
 1246         (B)Has a superior, excellent, exceptional, or equally
 1247  comparable financial strength rating by a rating agency
 1248  acceptable to the office;
 1249         (C) Maintains reserves, surplus, reinsurance, and
 1250  reinsurance equivalents sufficient to cover the insurer’s 100
 1251  year probable maximum hurricane loss at least twice in a single
 1252  hurricane season and submits such reinsurance to the office to
 1253  review for purposes of the take-out;
 1254         (D) Provides prominent notice to the policyholder before
 1255  the assumption of the policy that surplus lines policies are not
 1256  provided coverage by the Florida Insurance Guaranty Association
 1257  and provides an outline of any substantial differences in
 1258  coverage between the existing policy and the policy being
 1259  offered to the insured; and
 1260         (E) Provides policy coverage similar to that provided by
 1261  the corporation.
 1262         (IV)To obtain approval for a plan, the surplus lines
 1263  insurer must file the following with the office:
 1264         (A) Information requested by the office to demonstrate
 1265  compliance with s. 624.404(3), including biographical
 1266  affidavits, fingerprints processed pursuant to s. 624.34, and
 1267  the results of criminal history records checks for officers and
 1268  directors of the insurer and its parent or holding company;
 1269         (B) A service-of-process consent and agreement form
 1270  executed by the insurer;
 1271         (C) Proof that the insurer has been an eligible or
 1272  authorized insurer for at least 3 years;
 1273         (D) A duly authenticated copy of the insurer’s current
 1274  audited financial statement, in English, which, in the case of
 1275  statements originally made in the currencies of other countries,
 1276  expresses all monetary values in United States dollars, at an
 1277  exchange rate then current and shown in the statement, and
 1278  including any additional information relative to the insurer as
 1279  the office may request;
 1280         (E) A complete certified copy of the latest official
 1281  financial statement required by the insurer’s domiciliary state,
 1282  if different from the statement required by sub-sub-sub
 1283  subparagraph (D); and
 1284         (F)If applicable, a copy of the United States trust
 1285  account agreement.
 1286  
 1287  This sub-sub-subparagraph does not subject any surplus lines
 1288  insurer to requirements in addition to part VIII of chapter 626.
 1289  Surplus lines brokers making an offer of coverage under this
 1290  sub-subparagraph are not required to comply with s.
 1291  626.916(1)(a), (b), (c), or (e).
 1292         (V) Within 10 days after the date of assumption, the
 1293  surplus lines insurer assuming policies from the corporation
 1294  shall remit to the Bureau of Collateral Management within the
 1295  Department of Financial Services a special deposit equal to the
 1296  unearned premium net of unearned commissions on the assumed
 1297  block of business. The surplus lines insurer shall submit to the
 1298  office, along with the special deposit, an accounting of the
 1299  policies assumed and the amount of unearned premium for such
 1300  policies and a sworn affidavit attesting to the accuracy of the
 1301  accounting by an officer of the surplus lines insurer.
 1302  Thereafter, the surplus lines insurer shall make a filing within
 1303  10 days after the end of each calendar quarter attesting to the
 1304  unearned premium in force for the previous quarter on policies
 1305  assumed from the corporation and shall submit additional funds
 1306  with that filing if the special deposit is insufficient to cover
 1307  the unearned premium on assumed policies, or shall receive a
 1308  return of funds within 60 days if the special deposit exceeds
 1309  the amount of unearned premium required for assumed policies.
 1310  The special deposit is an asset of the surplus lines insurer
 1311  which is held by the department for the benefit of state
 1312  policyholders of the surplus lines insurer in the event of the
 1313  insolvency of the surplus lines insurer. If an order of
 1314  liquidation is entered in any state against the surplus lines
 1315  insurer, the department may use the special deposit for payment
 1316  of unearned premium or policy claims, return all or part of the
 1317  deposit to the domiciliary receiver, or use the funds in
 1318  accordance with any action authorized under part I of chapter
 1319  631 or in compliance with any order of a court having
 1320  jurisdiction over the insolvency.
 1321         (VI) In advance of a surplus lines insurer assuming a
 1322  policy, surplus lines brokers representing a surplus lines
 1323  insurer on a take-out program shall obtain confirmation, in
 1324  written or e-mail form, from each producing agent stating that
 1325  the agent is willing to participate in the take-out program with
 1326  the surplus lines insurer engaging in the take-out program. The
 1327  take-out program is also subject to s. 627.3517. If a
 1328  policyholder is selected for removal from the corporation by a
 1329  surplus lines insurer and an authorized insurer, the corporation
 1330  must give priority to the offer of coverage from the authorized
 1331  insurer.
 1332         (VII)(A)A risk that has a dwelling replacement cost of
 1333  $700,000 or more or a single condominium unit that has a
 1334  combined dwelling and contents replacement cost of $700,000 or
 1335  more is not eligible for coverage by the corporation if it is
 1336  offered comparable coverage from a qualified surplus lines
 1337  insurer at a premium no greater than the premium charged by the
 1338  corporation.
 1339         (B)A risk that has a dwelling replacement cost below
 1340  $700,000 or a single condominium unit that has a combined
 1341  dwelling and contents replacement cost below $700,000 remains
 1342  eligible for coverage by the corporation if it is offered
 1343  coverage from a qualified surplus lines insurer.
 1344         4. The plan shall provide for the deferment, in whole or in
 1345  part, of the assessment of an assessable insurer, other than an
 1346  emergency assessment collected from policyholders pursuant to
 1347  sub-subparagraph (b)3.d., if the office finds that payment of
 1348  the assessment would endanger or impair the solvency of the
 1349  insurer. In the event an assessment against an assessable
 1350  insurer is deferred in whole or in part, the amount by which
 1351  such assessment is deferred may be assessed against the other
 1352  assessable insurers in a manner consistent with the basis for
 1353  assessments set forth in paragraph (b).
 1354         5. Effective July 1, 2007, in order to evaluate the costs
 1355  and benefits of approved take-out plans, if the corporation pays
 1356  a bonus or other payment to an insurer for an approved take-out
 1357  plan, it shall maintain a record of the address or such other
 1358  identifying information on the property or risk removed in order
 1359  to track if and when the property or risk is later insured by
 1360  the corporation.
 1361         6. Any policy taken out, assumed, or removed from the
 1362  corporation is, as of the effective date of the take-out,
 1363  assumption, or removal, direct insurance issued by the insurer
 1364  and not by the corporation, even if the corporation continues to
 1365  service the policies. This subparagraph applies to policies of
 1366  the corporation and not policies taken out, assumed, or removed
 1367  from any other entity.
 1368         7. For a policy taken out, assumed, or removed from the
 1369  corporation, the insurer may, for a period of no more than 3
 1370  years, continue to use any of the corporation’s policy forms or
 1371  endorsements that apply to the policy taken out, removed, or
 1372  assumed without obtaining approval from the office for use of
 1373  such policy form or endorsement.
 1374         (x)1. The following records of the corporation are
 1375  confidential and exempt from the provisions of s. 119.07(1) and
 1376  s. 24(a), Art. I of the State Constitution:
 1377         a. Underwriting files, except that a policyholder or an
 1378  applicant shall have access to his or her own underwriting
 1379  files. Confidential and exempt underwriting file records may
 1380  also be released to other governmental agencies upon written
 1381  request and demonstration of need; such records held by the
 1382  receiving agency remain confidential and exempt as provided
 1383  herein.
 1384         b. Claims files, until termination of all litigation and
 1385  settlement of all claims arising out of the same incident,
 1386  although portions of the claims files may remain exempt, as
 1387  otherwise provided by law. Confidential and exempt claims file
 1388  records may be released to other governmental agencies upon
 1389  written request and demonstration of need; such records held by
 1390  the receiving agency remain confidential and exempt as provided
 1391  herein.
 1392         c. Records obtained or generated by an internal auditor
 1393  pursuant to a routine audit, until the audit is completed, or if
 1394  the audit is conducted as part of an investigation, until the
 1395  investigation is closed or ceases to be active. An investigation
 1396  is considered “active” while the investigation is being
 1397  conducted with a reasonable, good faith belief that it could
 1398  lead to the filing of administrative, civil, or criminal
 1399  proceedings.
 1400         d. Matters reasonably encompassed in privileged attorney
 1401  client communications.
 1402         e. Proprietary information licensed to the corporation
 1403  under contract and the contract provides for the confidentiality
 1404  of such proprietary information.
 1405         f. All information relating to the medical condition or
 1406  medical status of a corporation employee which is not relevant
 1407  to the employee’s capacity to perform his or her duties, except
 1408  as otherwise provided in this paragraph. Information that is
 1409  exempt includes shall include, but is not limited to,
 1410  information relating to workers’ compensation, insurance
 1411  benefits, and retirement or disability benefits.
 1412         g. Upon an employee’s entrance into the employee assistance
 1413  program, a program to assist any employee who has a behavioral
 1414  or medical disorder, substance abuse problem, or emotional
 1415  difficulty that affects the employee’s job performance, all
 1416  records relative to that participation are shall be confidential
 1417  and exempt from the provisions of s. 119.07(1) and s. 24(a),
 1418  Art. I of the State Constitution, except as otherwise provided
 1419  in s. 112.0455(11).
 1420         h. Information relating to negotiations for financing,
 1421  reinsurance, depopulation, or contractual services, until the
 1422  conclusion of the negotiations.
 1423         i. Minutes of closed meetings regarding underwriting files,
 1424  and minutes of closed meetings regarding an open claims file
 1425  until termination of all litigation and settlement of all claims
 1426  with regard to that claim, except that information otherwise
 1427  confidential or exempt by law must shall be redacted.
 1428         2. If an authorized insurer, a reinsurance intermediary, an
 1429  eligible surplus lines insurer, or an entity that has filed an
 1430  application with the office for licensure as a property and
 1431  casualty insurer in this state is considering writing or
 1432  assisting in the underwriting of a risk insured by the
 1433  corporation, relevant information from both the underwriting
 1434  files and confidential claims files may be released to the
 1435  insurer, reinsurance intermediary, eligible surplus lines
 1436  insurer, or entity that has been created to seek authority to
 1437  write property insurance in this state, provided that the
 1438  recipient insurer agrees in writing, notarized and under oath,
 1439  to maintain the confidentiality of such files. If a policy file
 1440  is transferred to an insurer, that policy file is no longer a
 1441  public record because it is not held by an agency subject to the
 1442  provisions of the public records law. Underwriting files and
 1443  confidential claims files may also be released to staff and the
 1444  board of governors of the market assistance plan established
 1445  pursuant to s. 627.3515, who must retain the confidentiality of
 1446  such files, except such files may be released to authorized
 1447  insurers that are considering assuming the risks to which the
 1448  files apply, provided the insurer agrees in writing, notarized
 1449  and under oath, to maintain the confidentiality of such files.
 1450  Finally, the corporation or the board or staff of the market
 1451  assistance plan may make the following information obtained from
 1452  underwriting files and confidential claims files available to an
 1453  entity that has obtained a permit to become an authorized
 1454  insurer, a reinsurer that may provide reinsurance under s.
 1455  624.610, a licensed reinsurance broker, a licensed rating
 1456  organization, a modeling company, or a licensed general lines
 1457  insurance agent: name, address, and telephone number of the
 1458  residential property owner or insured; location of the risk;
 1459  rating information; loss history; and policy type. The receiving
 1460  person must retain the confidentiality of the information
 1461  received and may use the information only for the purposes of
 1462  developing a take-out plan or a rating plan to be submitted to
 1463  the office for approval or otherwise analyzing the underwriting
 1464  of a risk or risks insured by the corporation on behalf of the
 1465  private insurance market. A licensed general lines insurance
 1466  agent may not use such information for the direct solicitation
 1467  of policyholders.
 1468         3. A policyholder who has filed suit against the
 1469  corporation has the right to discover the contents of his or her
 1470  own claims file to the same extent that discovery of such
 1471  contents would be available from a private insurer in litigation
 1472  as provided by the Florida Rules of Civil Procedure, the Florida
 1473  Evidence Code, and other applicable law. Pursuant to subpoena, a
 1474  third party has the right to discover the contents of an
 1475  insured’s or applicant’s underwriting or claims file to the same
 1476  extent that discovery of such contents would be available from a
 1477  private insurer by subpoena as provided by the Florida Rules of
 1478  Civil Procedure, the Florida Evidence Code, and other applicable
 1479  law, and subject to any confidentiality protections requested by
 1480  the corporation and agreed to by the seeking party or ordered by
 1481  the court. The corporation may release confidential underwriting
 1482  and claims file contents and information as it deems necessary
 1483  and appropriate to underwrite or service insurance policies and
 1484  claims, subject to any confidentiality protections deemed
 1485  necessary and appropriate by the corporation.
 1486         4. Portions of meetings of the corporation are exempt from
 1487  the provisions of s. 286.011 and s. 24(b), Art. I of the State
 1488  Constitution wherein confidential underwriting files or
 1489  confidential open claims files are discussed. All portions of
 1490  corporation meetings which are closed to the public shall be
 1491  recorded by a court reporter. The court reporter shall record
 1492  the times of commencement and termination of the meeting, all
 1493  discussion and proceedings, the names of all persons present at
 1494  any time, and the names of all persons speaking. No portion of
 1495  any closed meeting shall be off the record. Subject to the
 1496  provisions hereof and s. 119.07(1)(d)-(f), the court reporter’s
 1497  notes of any closed meeting shall be retained by the corporation
 1498  for a minimum of 5 years. A copy of the transcript, less any
 1499  exempt matters, of any closed meeting wherein claims are
 1500  discussed shall become public as to individual claims after
 1501  settlement of the claim.
 1502         (ii) The corporation shall revise the programs adopted
 1503  pursuant to sub-subparagraph (q)3.a. for personal lines
 1504  residential policies to maximize policyholder options and
 1505  encourage increased participation by insurers and agents. After
 1506  January 1, 2017, a policy may not be taken out of the
 1507  corporation unless the provisions of this paragraph are met.
 1508         1. The corporation must publish a periodic schedule of
 1509  cycles during which an insurer may identify, and notify the
 1510  corporation of, policies that the insurer is requesting to take
 1511  out. A request must include a description of the coverage
 1512  offered and an estimated premium and must be submitted to the
 1513  corporation in a form and manner prescribed by the corporation.
 1514         2. The corporation must maintain and make available to the
 1515  agent of record a consolidated list of all insurers requesting
 1516  to take out a policy. The list must include a description of the
 1517  coverage offered and the estimated premium for each take-out
 1518  request.
 1519         3. The corporation must provide written notice to the
 1520  policyholder and the agent of record regarding all insurers
 1521  requesting to take out the policy, which notice must inform that
 1522  a take-out offer that is not more than 20 percent greater than
 1523  the corporation’s premium renders the risk ineligible for
 1524  coverage from and regarding the policyholder’s option to accept
 1525  a take-out offer or to reject all take-out offers and to remain
 1526  with the corporation. The notice must be in a format prescribed
 1527  by the corporation and include, for each take-out offer:
 1528         a. The amount of the estimated premium;
 1529         b. A description of the coverage; and
 1530         c. A comparison of the estimated premium and coverage
 1531  offered by the insurer to the estimated premium and coverage
 1532  provided by the corporation.
 1533         Section 4. Section 627.3518, Florida Statutes, is amended
 1534  to read:
 1535         627.3518 Citizens Property Insurance Corporation
 1536  policyholder eligibility clearinghouse program.—The purpose of
 1537  this section is to provide a framework for the corporation to
 1538  implement a clearinghouse program by January 1, 2014.
 1539         (1) As used in this section, the term:
 1540         (a) “Corporation” means Citizens Property Insurance
 1541  Corporation.
 1542         (b) “Exclusive agent” means any licensed insurance agent
 1543  that has, by contract, agreed to act exclusively for one company
 1544  or group of affiliated insurance companies and is disallowed by
 1545  the provisions of that contract to directly write for any other
 1546  unaffiliated insurer absent express consent from the company or
 1547  group of affiliated insurance companies.
 1548         (c) “Independent agent” means any licensed insurance agent
 1549  not described in paragraph (b).
 1550         (d) “Program” means the clearinghouse created under this
 1551  section.
 1552         (2) In order to confirm eligibility with the corporation
 1553  and to enhance access of new applicants for coverage and
 1554  existing policyholders of the corporation to offers of coverage
 1555  from authorized insurers, the corporation shall establish a
 1556  program for personal residential risks in order to facilitate
 1557  the diversion of ineligible applicants and existing
 1558  policyholders from the corporation into the voluntary insurance
 1559  market. The corporation shall also develop appropriate
 1560  procedures for facilitating the diversion of ineligible
 1561  applicants and existing policyholders for commercial residential
 1562  coverage into the private insurance market and shall report such
 1563  procedures to the President of the Senate and the Speaker of the
 1564  House of Representatives by January 1, 2014.
 1565         (3) The corporation board shall establish the clearinghouse
 1566  program as an organizational unit within the corporation. The
 1567  program shall have all the rights and responsibilities in
 1568  carrying out its duties as a licensed general lines agent, but
 1569  may not be required to employ or engage a licensed general lines
 1570  agent or to maintain an insurance agency license to carry out
 1571  its activities in the solicitation and placement of insurance
 1572  coverage. In establishing the program, the corporation may:
 1573         (a) Require all new applications, and all policies due for
 1574  renewal, to be submitted for coverage to the program in order to
 1575  facilitate obtaining an offer of coverage from an authorized
 1576  insurer before binding or renewing coverage by the corporation.
 1577         (b) Employ or otherwise contract with individuals or other
 1578  entities for appropriate administrative or professional services
 1579  to effectuate the plan within the corporation in accordance with
 1580  the applicable purchasing requirements under s. 627.351.
 1581         (c) Enter into contracts with any authorized insurer to
 1582  participate in the program and accept an appointment by such
 1583  insurer.
 1584         (d) Provide funds to operate the program. Insurers and
 1585  agents participating in the program are not required to pay a
 1586  fee to offset or partially offset the cost of the program or use
 1587  the program for renewal of policies initially written through
 1588  the clearinghouse.
 1589         (e) Develop an enhanced application that includes
 1590  information to assist private insurers in determining whether to
 1591  make an offer of coverage through the program.
 1592         (f) For personal lines residential risks, require, before
 1593  approving all new applications for coverage by the corporation,
 1594  that every application be subject to a period of 2 business days
 1595  when any insurer participating in the program may select the
 1596  application for coverage. The insurer may issue a binder on any
 1597  policy selected for coverage for a period of at least 30 days
 1598  but not more than 60 days.
 1599         (4) Any authorized insurer may participate in the program;
 1600  however, participation is not mandatory for any insurer.
 1601  Insurers making offers of coverage to new applicants or renewal
 1602  policyholders through the program:
 1603         (a) May not be required to individually appoint any agent
 1604  whose customer is underwritten and bound through the program.
 1605  Notwithstanding s. 626.112, insurers are not required to appoint
 1606  any agent on a policy underwritten through the program for as
 1607  long as that policy remains with the insurer. Insurers may, at
 1608  their election, appoint any agent whose customer is initially
 1609  underwritten and bound through the program. In the event an
 1610  insurer accepts a policy from an agent who is not appointed
 1611  pursuant to this paragraph, and thereafter elects to accept a
 1612  policy from such agent, the provisions of s. 626.112 requiring
 1613  appointment apply to the agent.
 1614         (b) Must enter into a limited agency agreement with each
 1615  agent that is not appointed in accordance with paragraph (a) and
 1616  whose customer is underwritten and bound through the program.
 1617         (c) Must enter into its standard agency agreement with each
 1618  agent whose customer is underwritten and bound through the
 1619  program when that agent has been appointed by the insurer
 1620  pursuant to s. 626.112.
 1621         (d) Must comply with s. 627.4133(2).
 1622         (e) May participate through their single-designated
 1623  managing general agent or broker; however, the provisions of
 1624  paragraph (6)(a) regarding ownership, control, and use of the
 1625  expirations continue to apply.
 1626         (f) Must pay to the producing agent a commission equal to
 1627  that paid by the corporation or the usual and customary
 1628  commission paid by the insurer for that line of business,
 1629  whichever is greater.
 1630         (5) Notwithstanding s. 627.3517, any applicant for new
 1631  coverage from the corporation is not eligible for coverage from
 1632  the corporation if provided an offer of coverage from an
 1633  authorized insurer through the program at a premium that is at
 1634  or below the eligibility threshold established in s.
 1635  627.351(6)(c)5.a. Whenever an offer of coverage for a personal
 1636  lines risk is received for a policyholder of the corporation at
 1637  renewal from an authorized insurer through the program, if the
 1638  offer is at or below the eligibility threshold established in s.
 1639  627.351(6)(c)5.a. equal to or less than the corporation’s
 1640  renewal premium for comparable coverage, the risk is not
 1641  eligible for coverage with the corporation. In the event an
 1642  offer of coverage for a new applicant is received from an
 1643  authorized insurer through the program, and the premium offered
 1644  exceeds the eligibility threshold contained in s.
 1645  627.351(6)(c)5.a., the applicant or insured may elect to accept
 1646  such coverage, or may elect to accept or continue coverage with
 1647  the corporation. In the event an offer of coverage for a
 1648  personal lines risk is received from an authorized insurer at
 1649  renewal through the program, and the premium offered is at or
 1650  below the eligibility threshold established in s.
 1651  627.351(6)(c)5.a. more than the corporation’s renewal premium
 1652  for comparable coverage, the insured is not eligible to may
 1653  elect to accept such coverage, or may elect to accept or
 1654  continue coverage with the corporation. Section
 1655  627.351(6)(c)5.a.(I) does not apply to an offer of coverage from
 1656  an authorized insurer obtained through the program. An applicant
 1657  for coverage from the corporation who was declared ineligible
 1658  for coverage at renewal by the corporation in the previous 36
 1659  months due to an offer of coverage pursuant to this subsection
 1660  shall be considered a renewal under this section if the
 1661  corporation determines that the authorized insurer making the
 1662  offer of coverage pursuant to this subsection continues to
 1663  insure the applicant and increased the rate on the policy in
 1664  excess of the increase allowed for the corporation under s.
 1665  627.351(6)(n)5.
 1666         (6) Independent insurance agents submitting new
 1667  applications for coverage or that are the agent of record on a
 1668  renewal policy submitted to the program:
 1669         (a) Are granted and must maintain ownership and the
 1670  exclusive use of expirations, records, or other written or
 1671  electronic information directly related to such applications or
 1672  renewals written through the corporation or through an insurer
 1673  participating in the program, notwithstanding s.
 1674  627.351(6)(c)5.a.(I)(B) and (II)(B). Such ownership is granted
 1675  for as long as the insured remains with the agency or until sold
 1676  or surrendered in writing by the agent. Contracts with the
 1677  corporation or required by the corporation must not amend,
 1678  modify, interfere with, or limit such rights of ownership. Such
 1679  expirations, records, or other written or electronic information
 1680  may be used to review an application, issue a policy, or for any
 1681  other purpose necessary for placing such business through the
 1682  program.
 1683         (b) May not be required to be appointed by any insurer
 1684  participating in the program for policies written solely through
 1685  the program, notwithstanding the provisions of s. 626.112.
 1686         (c) May accept an appointment from any insurer
 1687  participating in the program.
 1688         (d) May enter into either a standard or limited agency
 1689  agreement with the insurer, at the insurer’s option.
 1690  
 1691  Applicants ineligible for coverage in accordance with subsection
 1692  (5) remain ineligible if their independent agent is unwilling or
 1693  unable to enter into a standard or limited agency agreement with
 1694  an insurer participating in the program.
 1695         (7) Exclusive agents submitting new applications for
 1696  coverage or that are the agent of record on a renewal policy
 1697  submitted to the program:
 1698         (a) Must maintain ownership and the exclusive use of
 1699  expirations, records, or other written or electronic information
 1700  directly related to such applications or renewals written
 1701  through the corporation or through an insurer participating in
 1702  the program, notwithstanding s. 627.351(6)(c)5.a.(I)(B) and
 1703  (II)(B). Contracts with the corporation or required by the
 1704  corporation must not amend, modify, interfere with, or limit
 1705  such rights of ownership. Such expirations, records, or other
 1706  written or electronic information may be used to review an
 1707  application, issue a policy, or for any other purpose necessary
 1708  for placing such business through the program.
 1709         (b) May not be required to be appointed by any insurer
 1710  participating in the program for policies written solely through
 1711  the program, notwithstanding the provisions of s. 626.112.
 1712         (c) Must only facilitate the placement of an offer of
 1713  coverage from an insurer whose limited servicing agreement is
 1714  approved by that exclusive agent’s exclusive insurer.
 1715         (d) May enter into a limited servicing agreement with the
 1716  insurer making an offer of coverage, and only after the
 1717  exclusive agent’s insurer has approved the limited servicing
 1718  agreement terms. The exclusive agent’s insurer must approve a
 1719  limited service agreement for the program for any insurer for
 1720  which it has approved a service agreement for other purposes.
 1721  
 1722  Applicants ineligible for coverage in accordance with subsection
 1723  (5) remain ineligible if their exclusive agent is unwilling or
 1724  unable to enter into a standard or limited agency agreement with
 1725  an insurer making an offer of coverage to that applicant.
 1726         (8) Submission of an application for coverage by the
 1727  corporation to the program does not constitute the binding of
 1728  coverage by the corporation, and failure of the program to
 1729  obtain an offer of coverage by an insurer may not be considered
 1730  acceptance of coverage of the risk by the corporation.
 1731         (9) The 45-day notice of nonrenewal requirement set forth
 1732  in s. 627.4133(2)(b)5. applies when a policy is nonrenewed by
 1733  the corporation because the risk has received an offer of
 1734  coverage pursuant to this section which renders the risk
 1735  ineligible for coverage by the corporation.
 1736         (10) The program may not include commercial nonresidential
 1737  policies.
 1738         (11) Proprietary business information provided to the
 1739  corporation’s clearinghouse by insurers with respect to
 1740  identifying and selecting risks for an offer of coverage is
 1741  confidential and exempt from s. 119.07(1) and s. 24(a), Art. I
 1742  of the State Constitution.
 1743         (a) As used in this subsection, the term “proprietary
 1744  business information” means information, regardless of form or
 1745  characteristics, which is owned or controlled by an insurer and:
 1746         1. Is identified by the insurer as proprietary business
 1747  information and is intended to be and is treated by the insurer
 1748  as private in that the disclosure of the information would cause
 1749  harm to the insurer, an individual, or the company’s business
 1750  operations and has not been disclosed unless disclosed pursuant
 1751  to a statutory requirement, an order of a court or
 1752  administrative body, or a private agreement that provides that
 1753  the information will not be released to the public;
 1754         2. Is not otherwise readily ascertainable or publicly
 1755  available by proper means by other persons from another source
 1756  in the same configuration as provided to the clearinghouse; and
 1757         3. Includes:
 1758         a. Trade secrets, as defined in s. 688.002.
 1759         b. Information relating to competitive interests, the
 1760  disclosure of which would impair the competitive business of the
 1761  provider of the information.
 1762  
 1763  Proprietary business information may be found in underwriting
 1764  criteria or instructions which are used to identify and select
 1765  risks through the program for an offer of coverage and are
 1766  shared with the clearinghouse to facilitate the shopping of
 1767  risks with the insurer.
 1768         (b) The clearinghouse may disclose confidential and exempt
 1769  proprietary business information:
 1770         1. If the insurer to which it pertains gives prior written
 1771  consent;
 1772         2. Pursuant to a court order; or
 1773         3. To another state agency in this or another state or to a
 1774  federal agency if the recipient agrees in writing to maintain
 1775  the confidential and exempt status of the document, material, or
 1776  other information and has verified in writing its legal
 1777  authority to maintain such confidentiality.
 1778         Section 5. Subsections (2) and (4) of section 627.701,
 1779  Florida Statutes, are amended, and subsection (10) is added to
 1780  that section, to read:
 1781         627.701 Liability of insureds; coinsurance; deductibles.—
 1782         (2) Unless the office determines that the deductible
 1783  provision is clear and unambiguous, a property insurer may not
 1784  issue an insurance policy or contract covering real property in
 1785  this state which contains a deductible provision that:
 1786         (a) Applies solely to hurricane losses.
 1787         (b) States the deductible as a percentage rather than as a
 1788  specific amount of money.
 1789         (c)Applies a roof deductible as provided in subsection
 1790  (10).
 1791         (4)(a) Any policy that contains a separate hurricane
 1792  deductible must on its face include in boldfaced type no smaller
 1793  than 18 points the following statement: “THIS POLICY CONTAINS A
 1794  SEPARATE DEDUCTIBLE FOR HURRICANE LOSSES, WHICH MAY RESULT IN
 1795  HIGH OUT-OF-POCKET EXPENSES TO YOU.” A policy containing a
 1796  coinsurance provision applicable to hurricane losses must on its
 1797  face include in boldfaced type no smaller than 18 points the
 1798  following statement: “THIS POLICY CONTAINS A CO-PAY PROVISION
 1799  THAT MAY RESULT IN HIGH OUT-OF-POCKET EXPENSES TO YOU.”
 1800         (b) For any personal lines residential property insurance
 1801  policy containing a separate hurricane deductible, the insurer
 1802  shall compute and prominently display the actual dollar value of
 1803  the hurricane deductible on the declarations page of the policy
 1804  at issuance and, for renewal, on the renewal declarations page
 1805  of the policy or on the premium renewal notice.
 1806         (c) For any personal lines residential property insurance
 1807  policy containing an inflation guard rider, the insurer shall
 1808  compute and prominently display the actual dollar value of the
 1809  hurricane deductible on the declarations page of the policy at
 1810  issuance and, for renewal, on the renewal declarations page of
 1811  the policy or on the premium renewal notice. In addition, for
 1812  any personal lines residential property insurance policy
 1813  containing an inflation guard rider, the insurer shall notify
 1814  the policyholder of the possibility that the hurricane
 1815  deductible may be higher than indicated when loss occurs due to
 1816  application of the inflation guard rider. Such notification
 1817  shall be made on the declarations page of the policy at issuance
 1818  and, for renewal, on the renewal declarations page of the policy
 1819  or on the premium renewal notice.
 1820         (d)1. A personal lines residential property insurance
 1821  policy covering a risk valued at less than $500,000 may not have
 1822  a hurricane deductible in excess of 10 percent of the policy
 1823  dwelling limits, unless the following conditions are met:
 1824         a. The policyholder must personally write and provide to
 1825  the insurer the following statement in his or her own
 1826  handwriting and sign his or her name, which must also be signed
 1827  by every other named insured on the policy, and dated: “I do not
 1828  want the insurance on my home to pay for the first (specify
 1829  dollar value) of damage from hurricanes. I will pay those costs.
 1830  My insurance will not.”
 1831         b. If the structure insured by the policy is subject to a
 1832  mortgage or lien, the policyholder must provide the insurer with
 1833  a written statement from the mortgageholder or lienholder
 1834  indicating that the mortgageholder or lienholder approves the
 1835  policyholder electing to have the specified deductible.
 1836         2. A deductible subject to the requirements of this
 1837  paragraph applies for the term of the policy and for each
 1838  renewal thereafter. Changes to the deductible percentage may be
 1839  implemented only as of the date of renewal.
 1840         3. An insurer shall keep the original copy of the signed
 1841  statement required by this paragraph, electronically or
 1842  otherwise, and provide a copy to the policyholder providing the
 1843  signed statement. A signed statement meeting the requirements of
 1844  this paragraph creates a presumption that there was an informed,
 1845  knowing election of coverage.
 1846         4. The commission shall adopt rules providing appropriate
 1847  alternative methods for providing the statements required by
 1848  this section for policyholders who have a handicapping or
 1849  disabling condition that prevents them from providing a
 1850  handwritten statement.
 1851         (e)1.Any personal lines residential property insurance
 1852  policy that contains a separate roof deductible must on its face
 1853  include in boldfaced type no smaller than 18 points the
 1854  following statement: “THIS POLICY CONTAINS A SEPARATE DEDUCTIBLE
 1855  FOR ROOF LOSSES WHICH MAY RESULT IN HIGH OUT-OF-POCKET EXPENSES
 1856  TO YOU.
 1857         2.For any personal lines residential property insurance
 1858  policy containing a separate roof deductible, the insurer shall
 1859  compute and prominently display the actual dollar value of the
 1860  roof deductible on the declarations page of the policy at
 1861  issuance and, for renewal, on the renewal declarations page of
 1862  the policy or on the premium renewal notice.
 1863         (10)Notwithstanding any other provision of this section
 1864  and any other provision of law, a property insurer may require a
 1865  separate roof deductible as a condition of eligibility or
 1866  renewal of a residential property insurance policy if all of the
 1867  following conditions are met:
 1868         (a)The roof deductible does not exceed 2 percent of the
 1869  policy dwelling limits.
 1870         (b)The premium for such coverage includes an actuarially
 1871  sound premium discount or credit for the impact of the roof
 1872  deductible.
 1873         (c)If a roof deductible is added to the policy at renewal,
 1874  the insurer provides a notice of change in policy terms pursuant
 1875  to s. 627.43141.
 1876         (d)The roof deductible does not apply to:
 1877         1.A total loss to a primary structure in accordance with
 1878  the valued policy law under s. 627.702 which is caused by a
 1879  covered peril.
 1880         2.A roof loss that is caused by a hurricane as defined by
 1881  s. 627.4025(2).
 1882         3.A roof loss that can be repaired without replacement of
 1883  the roof.
 1884         (e)If a roof deductible is applied, no other policy
 1885  deductible may be applied to the loss. If, however, a roof
 1886  deductible is not applied, the all-other-perils deductible or
 1887  the hurricane deductible may be applied.
 1888         Section 6. Paragraph (a) of subsection (3) of section
 1889  627.7011, Florida Statutes, is amended to read:
 1890         627.7011 Homeowners’ policies; offer of replacement cost
 1891  coverage and law and ordinance coverage.—
 1892         (3) In the event of a loss for which a dwelling or personal
 1893  property is insured on the basis of replacement costs:
 1894         (a) For a dwelling, the insurer must initially pay at least
 1895  the actual cash value of the insured loss, less any applicable
 1896  deductible. The insurer shall pay any remaining amounts
 1897  necessary to perform such repairs as work is performed and
 1898  expenses are incurred. However, if a roof deductible under s.
 1899  627.701(10) is applied to the insured loss, the insurer may
 1900  limit the claim payment as to the roof to the actual cash value
 1901  of the loss to the roof until the insurer receives reasonable
 1902  proof of payment by the policyholder of the roof deductible.
 1903  Reasonable proof of payment includes a canceled check, money
 1904  order receipt, credit card statement, or copy of an executed
 1905  installment plan contract or other financing arrangement that
 1906  requires full payment of the deductible over time. If a total
 1907  loss of a dwelling occurs, the insurer shall pay the replacement
 1908  cost coverage without reservation or holdback of any
 1909  depreciation in value, pursuant to s. 627.702.
 1910         Section 7. Paragraph (b) of subsection (8) of section
 1911  627.70152, Florida Statutes, is amended to read:
 1912         627.70152 Suits arising under a property insurance policy.—
 1913         (8) ATTORNEY FEES.—
 1914         (b) In a suit arising under a residential or commercial
 1915  property insurance policy not brought by an assignee, if a court
 1916  dismisses a claimant’s suit pursuant to subsection (5), the
 1917  court may not award to the claimant any incurred attorney fees
 1918  for services rendered before the dismissal of the suit. When a
 1919  claimant’s suit is dismissed pursuant to subsection (5), the
 1920  defendant may be awarded reasonable attorney fees for the costs
 1921  and expenses associated with securing the dismissal.
 1922         Section 8. For the purpose of incorporating the amendments
 1923  made by this act to section 627.351, Florida Statutes, in a
 1924  reference thereto, subsection (10) of section 624.424, Florida
 1925  Statutes, is reenacted to read:
 1926         624.424 Annual statement and other information.—
 1927         (10) Each insurer or insurer group doing business in this
 1928  state shall file on a quarterly basis in conjunction with
 1929  financial reports required by paragraph (1)(a) a supplemental
 1930  report on an individual and group basis on a form prescribed by
 1931  the commission with information on personal lines and commercial
 1932  lines residential property insurance policies in this state. The
 1933  supplemental report shall include separate information for
 1934  personal lines property policies and for commercial lines
 1935  property policies and totals for each item specified, including
 1936  premiums written for each of the property lines of business as
 1937  described in ss. 215.555(2)(c) and 627.351(6)(a). The report
 1938  shall include the following information for each county on a
 1939  monthly basis:
 1940         (a) Total number of policies in force at the end of each
 1941  month.
 1942         (b) Total number of policies canceled.
 1943         (c) Total number of policies nonrenewed.
 1944         (d) Number of policies canceled due to hurricane risk.
 1945         (e) Number of policies nonrenewed due to hurricane risk.
 1946         (f) Number of new policies written.
 1947         (g) Total dollar value of structure exposure under policies
 1948  that include wind coverage.
 1949         (h) Number of policies that exclude wind coverage.
 1950         Section 9. For the purpose of incorporating the amendments
 1951  made by this act to section 627.351, Florida Statutes, in a
 1952  reference thereto, section 627.3517, Florida Statutes, is
 1953  reenacted to read:
 1954         627.3517 Consumer choice.—No provision of s. 627.351, s.
 1955  627.3511, or s. 627.3515 shall be construed to impair the right
 1956  of any insurance risk apportionment plan policyholder, upon
 1957  receipt of any keepout or take-out offer, to retain his or her
 1958  current agent, so long as that agent is duly licensed and
 1959  appointed by the insurance risk apportionment plan or otherwise
 1960  authorized to place business with the insurance risk
 1961  apportionment plan. This right shall not be canceled, suspended,
 1962  impeded, abridged, or otherwise compromised by any rule, plan of
 1963  operation, or depopulation plan, whether through keepout, take
 1964  out, midterm assumption, or any other means, of any insurance
 1965  risk apportionment plan or depopulation plan, including, but not
 1966  limited to, those described in s. 627.351, s. 627.3511, or s.
 1967  627.3515. The commission shall adopt any rules necessary to
 1968  cause any insurance risk apportionment plan or market assistance
 1969  plan under such sections to demonstrate that the operations of
 1970  the plan do not interfere with, promote, or allow interference
 1971  with the rights created under this section. If the
 1972  policyholder’s current agent is unable or unwilling to be
 1973  appointed with the insurer making the take-out or keepout offer,
 1974  the policyholder shall not be disqualified from participation in
 1975  the appropriate insurance risk apportionment plan because of an
 1976  offer of coverage in the voluntary market. An offer of full
 1977  property insurance coverage by the insurer currently insuring
 1978  either the ex-wind or wind-only coverage on the policy to which
 1979  the offer applies shall not be considered a take-out or keepout
 1980  offer. Any rule, plan of operation, or plan of depopulation,
 1981  through keepout, take-out, midterm assumption, or any other
 1982  means, of any property insurance risk apportionment plan under
 1983  s. 627.351(2) or (6) is subject to ss. 627.351(2)(b) and (6)(c)
 1984  and 627.3511(4).
 1985         Section 10. For the purpose of incorporating the amendments
 1986  made by this act to section 627.351, Florida Statutes, in a
 1987  reference thereto, subsection (1) of section 627.712, Florida
 1988  Statutes, is reenacted to read:
 1989         627.712 Residential windstorm coverage required;
 1990  availability of exclusions for windstorm or contents.—
 1991         (1) An insurer issuing a residential property insurance
 1992  policy must provide windstorm coverage. Except as provided in
 1993  paragraph (2)(c), this section does not apply to risks that are
 1994  eligible for wind-only coverage from Citizens Property Insurance
 1995  Corporation under s. 627.351(6), and risks that are not eligible
 1996  for coverage from Citizens Property Insurance Corporation under
 1997  s. 627.351(6)(a)3. or 5. A risk ineligible for coverage by the
 1998  corporation under s. 627.351(6)(a)3. or 5. is exempt from this
 1999  section only if the risk is located within the boundaries of the
 2000  coastal account of the corporation.
 2001         Section 11. This act shall take effect July 1, 2022.
 2002  
 2003  ================= T I T L E  A M E N D M E N T ================
 2004  And the title is amended as follows:
 2005         Delete everything before the enacting clause
 2006  and insert:
 2007                        A bill to be entitled                      
 2008         An act relating to property insurance; amending s.
 2009         489.147, F.S.; revising the definition of the term
 2010         “prohibited advertisement”; amending s. 627.021, F.S.;
 2011         revising applicability; amending s. 627.351, F.S.;
 2012         deleting obsolete provisions related to eligibility
 2013         thresholds for personal lines residential coverage
 2014         with the Citizens Property Insurance Corporation;
 2015         requiring the corporation to use a method for valuing
 2016         dwelling replacement costs which is approved by the
 2017         Office of Insurance Regulation; requiring, rather than
 2018         authorizing, the corporation to use a single account
 2019         under certain circumstances; specifying qualifications
 2020         requirements for certain members of the board of
 2021         governors for the corporation; defining the term
 2022         “demonstrated expertise in insurance”; revising
 2023         conditions for eligibility for coverage with the
 2024         corporation; providing for a required limited annual
 2025         rate increase for specified polices; requiring that
 2026         certain new policies written by the corporation be
 2027         charged a specified premium until certain conditions
 2028         are met; defining the terms “primary residence” and
 2029         “unsound insurer”; providing that eligible surplus
 2030         lines insurers may participate, in the same manner and
 2031         on the same terms as an authorized insurer, in
 2032         depopulation, take-out, or keep-out programs relating
 2033         to policies removed from Citizens Property Insurance
 2034         Corporation; providing certain exceptions, conditions,
 2035         and requirements relating to such participation by a
 2036         surplus lines insurer in the corporation’s
 2037         depopulation, take-out, or keep-out programs;
 2038         providing thresholds for eligibility for coverage by
 2039         the corporation for risks that are offered coverage
 2040         from qualified surplus lines insurers; authorizing
 2041         information from underwriting files and confidential
 2042         claims files to be released under certain
 2043         circumstances by the corporation to specified entities
 2044         that consider writing or underwriting risks insured by
 2045         the corporation; specifying that only the
 2046         corporation’s transfer of a policy file to an insurer,
 2047         as opposed to the transfer of any file, changes the
 2048         file’s public record status; revising the contents of
 2049         a specified notice provided by the corporation; making
 2050         technical changes; amending s. 627.3518, F.S.;
 2051         deleting an obsolete provision related to implementing
 2052         the clearinghouse program by a specified date;
 2053         deleting an obsolete reporting requirement; conforming
 2054         provisions to changes made by the act; amending s.
 2055         627.701, F.S.; revising a prohibition against the
 2056         issuance of insurance policies containing certain
 2057         deductible provisions; requiring personal lines
 2058         residential property insurance policies containing
 2059         separate roof deductibles to include specified
 2060         information; authorizing property insurers to require
 2061         separate roof deductibles if certain conditions are
 2062         met; amending s. 627.7011, F.S.; authorizing insurers
 2063         to limit roof claim payments to the actual cash value
 2064         under certain circumstances; amending s. 627.70152,
 2065         F.S.; authorizing the award of reasonable attorney
 2066         fees to defendants under certain circumstances;
 2067         reenacting ss. 624.424(10), 627.3517, and 627.712(1),
 2068         F.S., relating to annual insurer statements, consumer
 2069         choice, and required residential windstorm coverage,
 2070         respectively, to incorporate the amendments made to s.
 2071         627.351, F.S., in references thereto; providing an
 2072         effective date.