CS for CS for SB 1728                            First Engrossed
       
       
       
       
       
       
       
       
       20221728e1
       
    1                        A bill to be entitled                      
    2         An act relating to property insurance; amending s.
    3         489.147, F.S.; revising the definition of the term
    4         “prohibited advertisement”; amending s. 627.021, F.S.;
    5         revising applicability; amending s. 627.351, F.S.;
    6         deleting obsolete provisions related to eligibility
    7         thresholds for personal lines residential coverage
    8         with the Citizens Property Insurance Corporation;
    9         requiring the corporation to use a method for valuing
   10         dwelling replacement costs which is approved by the
   11         Office of Insurance Regulation; requiring, rather than
   12         authorizing, the corporation to use a single account
   13         under certain circumstances; specifying qualifications
   14         requirements for certain members of the board of
   15         governors for the corporation; defining the term
   16         “demonstrated expertise in insurance”; revising
   17         conditions for eligibility for coverage with the
   18         corporation; providing for a required limited annual
   19         rate increase for specified polices; requiring that
   20         certain new policies written by the corporation be
   21         charged a specified premium until certain conditions
   22         are met; defining the terms “primary residence” and
   23         “unsound insurer”; providing that eligible surplus
   24         lines insurers may participate, in the same manner and
   25         on the same terms as an authorized insurer, in
   26         depopulation, take-out, or keep-out programs relating
   27         to policies removed from Citizens Property Insurance
   28         Corporation; providing certain exceptions, conditions,
   29         and requirements relating to such participation by a
   30         surplus lines insurer in the corporation’s
   31         depopulation, take-out, or keep-out programs;
   32         providing thresholds for eligibility for coverage by
   33         the corporation for risks that are offered coverage
   34         from qualified surplus lines insurers; authorizing
   35         information from underwriting files and confidential
   36         claims files to be released under certain
   37         circumstances by the corporation to specified entities
   38         that consider writing or underwriting risks insured by
   39         the corporation; specifying that only the
   40         corporation’s transfer of a policy file to an insurer,
   41         as opposed to the transfer of any file, changes the
   42         file’s public record status; revising the contents of
   43         a specified notice provided by the corporation; making
   44         technical changes; amending s. 627.3518, F.S.;
   45         deleting an obsolete provision related to implementing
   46         the clearinghouse program by a specified date;
   47         deleting an obsolete reporting requirement; conforming
   48         provisions to changes made by the act; amending s.
   49         627.701, F.S.; revising a prohibition against the
   50         issuance of insurance policies containing certain
   51         deductible provisions; requiring personal lines
   52         residential property insurance policies containing
   53         separate roof deductibles to include specified
   54         information; authorizing property insurers to require
   55         separate roof deductibles if certain conditions are
   56         met; amending s. 627.7011, F.S.; authorizing insurers
   57         to limit roof claim payments to the actual cash value
   58         under certain circumstances; amending s. 627.70152,
   59         F.S.; authorizing the award of reasonable attorney
   60         fees and costs to defendants under certain
   61         circumstances; reenacting ss. 624.424(10), 627.3517,
   62         and 627.712(1), F.S., relating to annual insurer
   63         statements, consumer choice, and required residential
   64         windstorm coverage, respectively, to incorporate the
   65         amendments made to s. 627.351, F.S., in references
   66         thereto; providing an effective date.
   67          
   68  Be It Enacted by the Legislature of the State of Florida:
   69  
   70         Section 1. Paragraph (a) of subsection (1) of section
   71  489.147, Florida Statutes, is amended to read:
   72         489.147 Prohibited property insurance practices.—
   73         (1) As used in this section, the term:
   74         (a) “Prohibited advertisement” means any written or
   75  electronic communication by a contractor which that encourages,
   76  instructs, or induces a consumer to contact a contractor or
   77  public adjuster for the purpose of making an insurance claim for
   78  roof damage, if such communication does not state in a font size
   79  of at least 12 points and at least half as large as the largest
   80  font size used in the communication that:
   81         1.The consumer is responsible for payment of any insurance
   82  deductible;
   83         2.It is insurance fraud punishable as a felony of the
   84  third degree for a contractor to pay, waive, or rebate all or
   85  part of an insurance deductible applicable to payment to the
   86  contractor for repairs to property covered by a property
   87  insurance policy; and
   88         3.It is insurance fraud punishable as a felony of the
   89  third degree to intentionally file an insurance claim containing
   90  any false, incomplete, or misleading information.
   91  
   92  The term includes, but is not limited to, door hangers, business
   93  cards, magnets, flyers, pamphlets, and e-mails.
   94         Section 2. Subsection (2) of section 627.021, Florida
   95  Statutes, is amended to read:
   96         627.021 Scope of this part.—
   97         (2) This part does not apply to:
   98         (a) Reinsurance, except joint reinsurance as provided in s.
   99  627.311.
  100         (b) Insurance against loss of or damage to aircraft, their
  101  hulls, accessories, or equipment, or against liability, other
  102  than workers’ compensation and employer’s liability, arising out
  103  of the ownership, maintenance, or use of aircraft.
  104         (c) Insurance of vessels or craft, their cargoes, marine
  105  builders’ risks, marine protection and indemnity, or other risks
  106  commonly insured under marine insurance policies.
  107         (d) Commercial inland marine insurance.
  108         (e) Except as may be specifically stated to apply, surplus
  109  lines insurance placed under the provisions of ss. 626.913
  110  626.937.
  111         Section 3. Paragraphs (a), (b), (c), (n), (q), (x), and
  112  (ii) of subsection (6) of section 627.351, Florida Statutes, are
  113  amended to read:
  114         627.351 Insurance risk apportionment plans.—
  115         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
  116         (a) The public purpose of this subsection is to ensure that
  117  there is an orderly market for property insurance for residents
  118  and businesses of this state.
  119         1. The Legislature finds that private insurers are
  120  unwilling or unable to provide affordable property insurance
  121  coverage in this state to the extent sought and needed. The
  122  absence of affordable property insurance threatens the public
  123  health, safety, and welfare and likewise threatens the economic
  124  health of the state. The state therefore has a compelling public
  125  interest and a public purpose to assist in assuring that
  126  property in this the state is insured and that it is insured at
  127  affordable rates so as to facilitate the remediation,
  128  reconstruction, and replacement of damaged or destroyed property
  129  in order to reduce or avoid the negative effects otherwise
  130  resulting to the public health, safety, and welfare, to the
  131  economy of the state, and to the revenues of the state and local
  132  governments which are needed to provide for the public welfare.
  133  It is necessary, therefore, to provide affordable property
  134  insurance to applicants who are in good faith entitled to
  135  procure insurance through the voluntary market but are unable to
  136  do so. The Legislature intends, therefore, that affordable
  137  property insurance be provided and that it continue to be
  138  provided, as long as necessary, through Citizens Property
  139  Insurance Corporation, a government entity that is an integral
  140  part of the state, and that is not a private insurance company.
  141  To that end, the corporation shall strive to increase the
  142  availability of affordable property insurance in this state,
  143  while achieving efficiencies and economies, and while providing
  144  service to policyholders, applicants, and agents which is no
  145  less than the quality generally provided in the voluntary
  146  market, for the achievement of the foregoing public purposes.
  147  Because it is essential for this government entity to have the
  148  maximum financial resources to pay claims following a
  149  catastrophic hurricane, it is the intent of the Legislature that
  150  the corporation continue to be an integral part of the state and
  151  that the income of the corporation be exempt from federal income
  152  taxation and that interest on the debt obligations issued by the
  153  corporation be exempt from federal income taxation.
  154         2. The Residential Property and Casualty Joint Underwriting
  155  Association originally created by this statute shall be known as
  156  the Citizens Property Insurance Corporation. The corporation
  157  shall provide insurance for residential and commercial property,
  158  for applicants who are entitled, but, in good faith, are unable
  159  to procure insurance through the voluntary market. The
  160  corporation shall operate pursuant to a plan of operation
  161  approved by order of the Financial Services Commission. The plan
  162  is subject to continuous review by the commission. The
  163  commission may, by order, withdraw approval of all or part of a
  164  plan if the commission determines that conditions have changed
  165  since approval was granted and that the purposes of the plan
  166  require changes in the plan. For the purposes of this
  167  subsection, residential coverage includes both personal lines
  168  residential coverage, which consists of the type of coverage
  169  provided by homeowner, mobile home owner, dwelling, tenant,
  170  condominium unit owner, and similar policies; and commercial
  171  lines residential coverage, which consists of the type of
  172  coverage provided by condominium association, apartment
  173  building, and similar policies.
  174         3. With respect to coverage for personal lines residential
  175  structures, and:
  176         a. Effective January 1, 2014, a structure that has a
  177  dwelling replacement cost of $1 million or more, or a single
  178  condominium unit that has a combined dwelling and contents
  179  replacement cost of $1 million or more, is not eligible for
  180  coverage by the corporation. Such dwellings insured by the
  181  corporation on December 31, 2013, may continue to be covered by
  182  the corporation until the end of the policy term. The office
  183  shall approve the method used by the corporation for valuing the
  184  dwelling replacement cost for the purposes of this subparagraph.
  185  If a policyholder is insured by the corporation before being
  186  determined to be ineligible pursuant to this subparagraph and
  187  such policyholder files a lawsuit challenging the determination,
  188  the policyholder may remain insured by the corporation until the
  189  conclusion of the litigation.
  190         b. Effective January 1, 2015, a structure that has a
  191  dwelling replacement cost of $900,000 or more, or a single
  192  condominium unit that has a combined dwelling and contents
  193  replacement cost of $900,000 or more, is not eligible for
  194  coverage by the corporation. Such dwellings insured by the
  195  corporation on December 31, 2014, may continue to be covered by
  196  the corporation only until the end of the policy term.
  197         c. Effective January 1, 2016, a structure that has a
  198  dwelling replacement cost of $800,000 or more, or a single
  199  condominium unit that has a combined dwelling and contents
  200  replacement cost of $800,000 or more, is not eligible for
  201  coverage by the corporation. Such dwellings insured by the
  202  corporation on December 31, 2015, may continue to be covered by
  203  the corporation until the end of the policy term.
  204         d. effective January 1, 2017, a structure that has a
  205  dwelling replacement cost of $700,000 or more, or a single
  206  condominium unit that has a combined dwelling and contents
  207  replacement cost of $700,000 or more, is not eligible for
  208  coverage by the corporation. The corporation must use a method
  209  for valuing the dwelling replacement cost which is approved by
  210  the office Such dwellings insured by the corporation on December
  211  31, 2016, may continue to be covered by the corporation until
  212  the end of the policy term. The requirements of sub
  213  subparagraphs b.-d. do not apply However, in counties where the
  214  office determines there is not a reasonable degree of
  215  competition,. In such counties a personal lines residential
  216  structure that has a dwelling replacement cost of less than $1
  217  million, or a single condominium unit that has a combined
  218  dwelling and contents replacement cost of less than $1 million,
  219  is eligible for coverage by the corporation.
  220         4. It is the intent of the Legislature that policyholders,
  221  applicants, and agents of the corporation receive service and
  222  treatment of the highest possible level but never less than that
  223  generally provided in the voluntary market. It is also intended
  224  that the corporation be held to service standards no less than
  225  those applied to insurers in the voluntary market by the office
  226  with respect to responsiveness, timeliness, customer courtesy,
  227  and overall dealings with policyholders, applicants, or agents
  228  of the corporation.
  229         5.a. Effective January 1, 2009, a personal lines
  230  residential structure that is located in the “wind-borne debris
  231  region,” as defined in s. 1609.2, International Building Code
  232  (2006), and that has an insured value on the structure of
  233  $750,000 or more is not eligible for coverage by the corporation
  234  unless the structure has opening protections as required under
  235  the Florida Building Code for a newly constructed residential
  236  structure in that area. A residential structure is deemed to
  237  comply with this sub-subparagraph if it has shutters or opening
  238  protections on all openings and if such opening protections
  239  complied with the Florida Building Code at the time they were
  240  installed.
  241         b. Any major structure, as defined in s. 161.54(6)(a), that
  242  is newly constructed, or rebuilt, repaired, restored, or
  243  remodeled to increase the total square footage of finished area
  244  by more than 25 percent, pursuant to a permit applied for after
  245  July 1, 2015, is not eligible for coverage by the corporation if
  246  the structure is seaward of the coastal construction control
  247  line established pursuant to s. 161.053 or is within the Coastal
  248  Barrier Resources System as designated by 16 U.S.C. ss. 3501
  249  3510.
  250         6. With respect to wind-only coverage for commercial lines
  251  residential condominiums, effective July 1, 2014, a condominium
  252  shall be deemed ineligible for coverage if 50 percent or more of
  253  the units are rented more than eight times in a calendar year
  254  for a rental agreement period of less than 30 days.
  255         (b)1. All insurers authorized to write one or more subject
  256  lines of business in this state are subject to assessment by the
  257  corporation and, for the purposes of this subsection, are
  258  referred to collectively as “assessable insurers.” Insurers
  259  writing one or more subject lines of business in this state
  260  pursuant to part VIII of chapter 626 are not assessable
  261  insurers; however, insureds who procure one or more subject
  262  lines of business in this state pursuant to part VIII of chapter
  263  626 are subject to assessment by the corporation and are
  264  referred to collectively as “assessable insureds.” An insurer’s
  265  assessment liability begins on the first day of the calendar
  266  year following the year in which the insurer was issued a
  267  certificate of authority to transact insurance for subject lines
  268  of business in this state and terminates 1 year after the end of
  269  the first calendar year during which the insurer no longer holds
  270  a certificate of authority to transact insurance for subject
  271  lines of business in this state.
  272         2.a. All revenues, assets, liabilities, losses, and
  273  expenses of the corporation shall be divided into three separate
  274  accounts as follows:
  275         (I) A personal lines account for personal residential
  276  policies issued by the corporation which provides comprehensive,
  277  multiperil coverage on risks that are not located in areas
  278  eligible for coverage by the Florida Windstorm Underwriting
  279  Association as those areas were defined on January 1, 2002, and
  280  for policies that do not provide coverage for the peril of wind
  281  on risks that are located in such areas;
  282         (II) A commercial lines account for commercial residential
  283  and commercial nonresidential policies issued by the corporation
  284  which provides coverage for basic property perils on risks that
  285  are not located in areas eligible for coverage by the Florida
  286  Windstorm Underwriting Association as those areas were defined
  287  on January 1, 2002, and for policies that do not provide
  288  coverage for the peril of wind on risks that are located in such
  289  areas; and
  290         (III) A coastal account for personal residential policies
  291  and commercial residential and commercial nonresidential
  292  property policies issued by the corporation which provides
  293  coverage for the peril of wind on risks that are located in
  294  areas eligible for coverage by the Florida Windstorm
  295  Underwriting Association as those areas were defined on January
  296  1, 2002. The corporation may offer policies that provide
  297  multiperil coverage and shall offer policies that provide
  298  coverage only for the peril of wind for risks located in areas
  299  eligible for coverage in the coastal account. Effective July 1,
  300  2014, the corporation shall cease offering new commercial
  301  residential policies providing multiperil coverage and shall
  302  instead continue to offer commercial residential wind-only
  303  policies, and may offer commercial residential policies
  304  excluding wind. The corporation may, however, continue to renew
  305  a commercial residential multiperil policy on a building that is
  306  insured by the corporation on June 30, 2014, under a multiperil
  307  policy. In issuing multiperil coverage, the corporation may use
  308  its approved policy forms and rates for the personal lines
  309  account. An applicant or insured who is eligible to purchase a
  310  multiperil policy from the corporation may purchase a multiperil
  311  policy from an authorized insurer without prejudice to the
  312  applicant’s or insured’s eligibility to prospectively purchase a
  313  policy that provides coverage only for the peril of wind from
  314  the corporation. An applicant or insured who is eligible for a
  315  corporation policy that provides coverage only for the peril of
  316  wind may elect to purchase or retain such policy and also
  317  purchase or retain coverage excluding wind from an authorized
  318  insurer without prejudice to the applicant’s or insured’s
  319  eligibility to prospectively purchase a policy that provides
  320  multiperil coverage from the corporation. It is the goal of the
  321  Legislature that there be an overall average savings of 10
  322  percent or more for a policyholder who currently has a wind-only
  323  policy with the corporation, and an ex-wind policy with a
  324  voluntary insurer or the corporation, and who obtains a
  325  multiperil policy from the corporation. It is the intent of the
  326  Legislature that the offer of multiperil coverage in the coastal
  327  account be made and implemented in a manner that does not
  328  adversely affect the tax-exempt status of the corporation or
  329  creditworthiness of or security for currently outstanding
  330  financing obligations or credit facilities of the coastal
  331  account, the personal lines account, or the commercial lines
  332  account. The coastal account must also include quota share
  333  primary insurance under subparagraph (c)2. The area eligible for
  334  coverage under the coastal account also includes the area within
  335  Port Canaveral, which is bordered on the south by the City of
  336  Cape Canaveral, bordered on the west by the Banana River, and
  337  bordered on the north by Federal Government property.
  338         b. The three separate accounts must be maintained as long
  339  as financing obligations entered into by the Florida Windstorm
  340  Underwriting Association or Residential Property and Casualty
  341  Joint Underwriting Association are outstanding, in accordance
  342  with the terms of the corresponding financing documents. If the
  343  financing obligations are no longer outstanding, the corporation
  344  shall may use a single account for all revenues, assets,
  345  liabilities, losses, and expenses of the corporation. Consistent
  346  with this subparagraph and prudent investment policies that
  347  minimize the cost of carrying debt, the board shall exercise its
  348  best efforts to retire existing debt or obtain the approval of
  349  necessary parties to amend the terms of existing debt, so as to
  350  structure the most efficient plan for consolidating the three
  351  separate accounts into a single account.
  352         c. Creditors of the Residential Property and Casualty Joint
  353  Underwriting Association and the accounts specified in sub-sub
  354  subparagraphs a.(I) and (II) may have a claim against, and
  355  recourse to, those accounts and no claim against, or recourse
  356  to, the account referred to in sub-sub-subparagraph a.(III).
  357  Creditors of the Florida Windstorm Underwriting Association have
  358  a claim against, and recourse to, the account referred to in
  359  sub-sub-subparagraph a.(III) and no claim against, or recourse
  360  to, the accounts referred to in sub-sub-subparagraphs a.(I) and
  361  (II).
  362         d. Revenues, assets, liabilities, losses, and expenses not
  363  attributable to particular accounts shall be prorated among the
  364  accounts.
  365         e. The Legislature finds that the revenues of the
  366  corporation are revenues that are necessary to meet the
  367  requirements set forth in documents authorizing the issuance of
  368  bonds under this subsection.
  369         f. The income of the corporation may not inure to the
  370  benefit of any private person.
  371         3. With respect to a deficit in an account:
  372         a. After accounting for the Citizens policyholder surcharge
  373  imposed under sub-subparagraph i., if the remaining projected
  374  deficit incurred in the coastal account in a particular calendar
  375  year:
  376         (I) Is not greater than 2 percent of the aggregate
  377  statewide direct written premium for the subject lines of
  378  business for the prior calendar year, the entire deficit shall
  379  be recovered through regular assessments of assessable insurers
  380  under paragraph (q) and assessable insureds.
  381         (II) Exceeds 2 percent of the aggregate statewide direct
  382  written premium for the subject lines of business for the prior
  383  calendar year, the corporation shall levy regular assessments on
  384  assessable insurers under paragraph (q) and on assessable
  385  insureds in an amount equal to the greater of 2 percent of the
  386  projected deficit or 2 percent of the aggregate statewide direct
  387  written premium for the subject lines of business for the prior
  388  calendar year. Any remaining projected deficit shall be
  389  recovered through emergency assessments under sub-subparagraph
  390  d.
  391         b. Each assessable insurer’s share of the amount being
  392  assessed under sub-subparagraph a. must be in the proportion
  393  that the assessable insurer’s direct written premium for the
  394  subject lines of business for the year preceding the assessment
  395  bears to the aggregate statewide direct written premium for the
  396  subject lines of business for that year. The assessment
  397  percentage applicable to each assessable insured is the ratio of
  398  the amount being assessed under sub-subparagraph a. to the
  399  aggregate statewide direct written premium for the subject lines
  400  of business for the prior year. Assessments levied by the
  401  corporation on assessable insurers under sub-subparagraph a.
  402  must be paid as required by the corporation’s plan of operation
  403  and paragraph (q). Assessments levied by the corporation on
  404  assessable insureds under sub-subparagraph a. shall be collected
  405  by the surplus lines agent at the time the surplus lines agent
  406  collects the surplus lines tax required by s. 626.932, and paid
  407  to the Florida Surplus Lines Service Office at the time the
  408  surplus lines agent pays the surplus lines tax to that office.
  409  Upon receipt of regular assessments from surplus lines agents,
  410  the Florida Surplus Lines Service Office shall transfer the
  411  assessments directly to the corporation as determined by the
  412  corporation.
  413         c. After accounting for the Citizens policyholder surcharge
  414  imposed under sub-subparagraph i., the remaining projected
  415  deficits in the personal lines account and in the commercial
  416  lines account in a particular calendar year shall be recovered
  417  through emergency assessments under sub-subparagraph d.
  418         d. Upon a determination by the board of governors that a
  419  projected deficit in an account exceeds the amount that is
  420  expected to be recovered through regular assessments under sub
  421  subparagraph a., plus the amount that is expected to be
  422  recovered through surcharges under sub-subparagraph i., the
  423  board, after verification by the office, shall levy emergency
  424  assessments for as many years as necessary to cover the
  425  deficits, to be collected by assessable insurers and the
  426  corporation and collected from assessable insureds upon issuance
  427  or renewal of policies for subject lines of business, excluding
  428  National Flood Insurance policies. The amount collected in a
  429  particular year must be a uniform percentage of that year’s
  430  direct written premium for subject lines of business and all
  431  accounts of the corporation, excluding National Flood Insurance
  432  Program policy premiums, as annually determined by the board and
  433  verified by the office. The office shall verify the arithmetic
  434  calculations involved in the board’s determination within 30
  435  days after receipt of the information on which the determination
  436  was based. The office shall notify assessable insurers and the
  437  Florida Surplus Lines Service Office of the date on which
  438  assessable insurers shall begin to collect and assessable
  439  insureds shall begin to pay such assessment. The date must be at
  440  least 90 days after the date the corporation levies emergency
  441  assessments pursuant to this sub-subparagraph. Notwithstanding
  442  any other provision of law, the corporation and each assessable
  443  insurer that writes subject lines of business shall collect
  444  emergency assessments from its policyholders without such
  445  obligation being affected by any credit, limitation, exemption,
  446  or deferment. Emergency assessments levied by the corporation on
  447  assessable insureds shall be collected by the surplus lines
  448  agent at the time the surplus lines agent collects the surplus
  449  lines tax required by s. 626.932 and paid to the Florida Surplus
  450  Lines Service Office at the time the surplus lines agent pays
  451  the surplus lines tax to that office. The emergency assessments
  452  collected shall be transferred directly to the corporation on a
  453  periodic basis as determined by the corporation and held by the
  454  corporation solely in the applicable account. The aggregate
  455  amount of emergency assessments levied for an account in any
  456  calendar year may be less than but may not exceed the greater of
  457  10 percent of the amount needed to cover the deficit, plus
  458  interest, fees, commissions, required reserves, and other costs
  459  associated with financing the original deficit, or 10 percent of
  460  the aggregate statewide direct written premium for subject lines
  461  of business and all accounts of the corporation for the prior
  462  year, plus interest, fees, commissions, required reserves, and
  463  other costs associated with financing the deficit.
  464         e. The corporation may pledge the proceeds of assessments,
  465  projected recoveries from the Florida Hurricane Catastrophe
  466  Fund, other insurance and reinsurance recoverables, policyholder
  467  surcharges and other surcharges, and other funds available to
  468  the corporation as the source of revenue for and to secure bonds
  469  issued under paragraph (q), bonds or other indebtedness issued
  470  under subparagraph (c)3., or lines of credit or other financing
  471  mechanisms issued or created under this subsection, or to retire
  472  any other debt incurred as a result of deficits or events giving
  473  rise to deficits, or in any other way that the board determines
  474  will efficiently recover such deficits. The purpose of the lines
  475  of credit or other financing mechanisms is to provide additional
  476  resources to assist the corporation in covering claims and
  477  expenses attributable to a catastrophe. As used in this
  478  subsection, the term “assessments” includes regular assessments
  479  under sub-subparagraph a. or subparagraph (q)1. and emergency
  480  assessments under sub-subparagraph d. Emergency assessments
  481  collected under sub-subparagraph d. are not part of an insurer’s
  482  rates, are not premium, and are not subject to premium tax,
  483  fees, or commissions; however, failure to pay the emergency
  484  assessment shall be treated as failure to pay premium. The
  485  emergency assessments shall continue as long as any bonds issued
  486  or other indebtedness incurred with respect to a deficit for
  487  which the assessment was imposed remain outstanding, unless
  488  adequate provision has been made for the payment of such bonds
  489  or other indebtedness pursuant to the documents governing such
  490  bonds or indebtedness.
  491         f. As used in this subsection for purposes of any deficit
  492  incurred on or after January 25, 2007, the term “subject lines
  493  of business” means insurance written by assessable insurers or
  494  procured by assessable insureds for all property and casualty
  495  lines of business in this state, but not including workers’
  496  compensation or medical malpractice. As used in this sub
  497  subparagraph, the term “property and casualty lines of business”
  498  includes all lines of business identified on Form 2, Exhibit of
  499  Premiums and Losses, in the annual statement required of
  500  authorized insurers under s. 624.424 and any rule adopted under
  501  this section, except for those lines identified as accident and
  502  health insurance and except for policies written under the
  503  National Flood Insurance Program or the Federal Crop Insurance
  504  Program. For purposes of this sub-subparagraph, the term
  505  “workers’ compensation” includes both workers’ compensation
  506  insurance and excess workers’ compensation insurance.
  507         g. The Florida Surplus Lines Service Office shall determine
  508  annually the aggregate statewide written premium in subject
  509  lines of business procured by assessable insureds and report
  510  that information to the corporation in a form and at a time the
  511  corporation specifies to ensure that the corporation can meet
  512  the requirements of this subsection and the corporation’s
  513  financing obligations.
  514         h. The Florida Surplus Lines Service Office shall verify
  515  the proper application by surplus lines agents of assessment
  516  percentages for regular assessments and emergency assessments
  517  levied under this subparagraph on assessable insureds and assist
  518  the corporation in ensuring the accurate, timely collection and
  519  payment of assessments by surplus lines agents as required by
  520  the corporation.
  521         i. Upon determination by the board of governors that an
  522  account has a projected deficit, the board shall levy a Citizens
  523  policyholder surcharge against all policyholders of the
  524  corporation.
  525         (I) The surcharge shall be levied as a uniform percentage
  526  of the premium for the policy of up to 15 percent of such
  527  premium, which funds shall be used to offset the deficit.
  528         (II) The surcharge is payable upon cancellation or
  529  termination of the policy, upon renewal of the policy, or upon
  530  issuance of a new policy by the corporation within the first 12
  531  months after the date of the levy or the period of time
  532  necessary to fully collect the surcharge amount.
  533         (III) The corporation may not levy any regular assessments
  534  under paragraph (q) pursuant to sub-subparagraph a. or sub
  535  subparagraph b. with respect to a particular year’s deficit
  536  until the corporation has first levied the full amount of the
  537  surcharge authorized by this sub-subparagraph.
  538         (IV) The surcharge is not considered premium and is not
  539  subject to commissions, fees, or premium taxes. However, failure
  540  to pay the surcharge shall be treated as failure to pay premium.
  541         j. If the amount of any assessments or surcharges collected
  542  from corporation policyholders, assessable insurers or their
  543  policyholders, or assessable insureds exceeds the amount of the
  544  deficits, such excess amounts shall be remitted to and retained
  545  by the corporation in a reserve to be used by the corporation,
  546  as determined by the board of governors and approved by the
  547  office, to pay claims or reduce any past, present, or future
  548  plan-year deficits or to reduce outstanding debt.
  549         (c) The corporation’s plan of operation:
  550         1. Must provide for adoption of residential property and
  551  casualty insurance policy forms and commercial residential and
  552  nonresidential property insurance forms, which must be approved
  553  by the office before use. The corporation shall adopt the
  554  following policy forms:
  555         a. Standard personal lines policy forms that are
  556  comprehensive multiperil policies providing full coverage of a
  557  residential property equivalent to the coverage provided in the
  558  private insurance market under an HO-3, HO-4, or HO-6 policy.
  559         b. Basic personal lines policy forms that are policies
  560  similar to an HO-8 policy or a dwelling fire policy that provide
  561  coverage meeting the requirements of the secondary mortgage
  562  market, but which is more limited than the coverage under a
  563  standard policy.
  564         c. Commercial lines residential and nonresidential policy
  565  forms that are generally similar to the basic perils of full
  566  coverage obtainable for commercial residential structures and
  567  commercial nonresidential structures in the admitted voluntary
  568  market.
  569         d. Personal lines and commercial lines residential property
  570  insurance forms that cover the peril of wind only. The forms are
  571  applicable only to residential properties located in areas
  572  eligible for coverage under the coastal account referred to in
  573  sub-subparagraph (b)2.a.
  574         e. Commercial lines nonresidential property insurance forms
  575  that cover the peril of wind only. The forms are applicable only
  576  to nonresidential properties located in areas eligible for
  577  coverage under the coastal account referred to in sub
  578  subparagraph (b)2.a.
  579         f. The corporation may adopt variations of the policy forms
  580  listed in sub-subparagraphs a.-e. which contain more restrictive
  581  coverage.
  582         g. Effective January 1, 2013, the corporation shall offer a
  583  basic personal lines policy similar to an HO-8 policy with
  584  dwelling repair based on common construction materials and
  585  methods.
  586         2. Must provide that the corporation adopt a program in
  587  which the corporation and authorized insurers enter into quota
  588  share primary insurance agreements for hurricane coverage, as
  589  defined in s. 627.4025(2)(a), for eligible risks, and adopt
  590  property insurance forms for eligible risks which cover the
  591  peril of wind only.
  592         a. As used in this subsection, the term:
  593         (I) “Quota share primary insurance” means an arrangement in
  594  which the primary hurricane coverage of an eligible risk is
  595  provided in specified percentages by the corporation and an
  596  authorized insurer. The corporation and authorized insurer are
  597  each solely responsible for a specified percentage of hurricane
  598  coverage of an eligible risk as set forth in a quota share
  599  primary insurance agreement between the corporation and an
  600  authorized insurer and the insurance contract. The
  601  responsibility of the corporation or authorized insurer to pay
  602  its specified percentage of hurricane losses of an eligible
  603  risk, as set forth in the agreement, may not be altered by the
  604  inability of the other party to pay its specified percentage of
  605  losses. Eligible risks that are provided hurricane coverage
  606  through a quota share primary insurance arrangement must be
  607  provided policy forms that set forth the obligations of the
  608  corporation and authorized insurer under the arrangement,
  609  clearly specify the percentages of quota share primary insurance
  610  provided by the corporation and authorized insurer, and
  611  conspicuously and clearly state that the authorized insurer and
  612  the corporation may not be held responsible beyond their
  613  specified percentage of coverage of hurricane losses.
  614         (II) “Eligible risks” means personal lines residential and
  615  commercial lines residential risks that meet the underwriting
  616  criteria of the corporation and are located in areas that were
  617  eligible for coverage by the Florida Windstorm Underwriting
  618  Association on January 1, 2002.
  619         b. The corporation may enter into quota share primary
  620  insurance agreements with authorized insurers at corporation
  621  coverage levels of 90 percent and 50 percent.
  622         c. If the corporation determines that additional coverage
  623  levels are necessary to maximize participation in quota share
  624  primary insurance agreements by authorized insurers, the
  625  corporation may establish additional coverage levels. However,
  626  the corporation’s quota share primary insurance coverage level
  627  may not exceed 90 percent.
  628         d. Any quota share primary insurance agreement entered into
  629  between an authorized insurer and the corporation must provide
  630  for a uniform specified percentage of coverage of hurricane
  631  losses, by county or territory as set forth by the corporation
  632  board, for all eligible risks of the authorized insurer covered
  633  under the agreement.
  634         e. Any quota share primary insurance agreement entered into
  635  between an authorized insurer and the corporation is subject to
  636  review and approval by the office. However, such agreement shall
  637  be authorized only as to insurance contracts entered into
  638  between an authorized insurer and an insured who is already
  639  insured by the corporation for wind coverage.
  640         f. For all eligible risks covered under quota share primary
  641  insurance agreements, the exposure and coverage levels for both
  642  the corporation and authorized insurers shall be reported by the
  643  corporation to the Florida Hurricane Catastrophe Fund. For all
  644  policies of eligible risks covered under such agreements, the
  645  corporation and the authorized insurer must maintain complete
  646  and accurate records for the purpose of exposure and loss
  647  reimbursement audits as required by fund rules. The corporation
  648  and the authorized insurer shall each maintain duplicate copies
  649  of policy declaration pages and supporting claims documents.
  650         g. The corporation board shall establish in its plan of
  651  operation standards for quota share agreements which ensure that
  652  there is no discriminatory application among insurers as to the
  653  terms of the agreements, pricing of the agreements, incentive
  654  provisions if any, and consideration paid for servicing policies
  655  or adjusting claims.
  656         h. The quota share primary insurance agreement between the
  657  corporation and an authorized insurer must set forth the
  658  specific terms under which coverage is provided, including, but
  659  not limited to, the sale and servicing of policies issued under
  660  the agreement by the insurance agent of the authorized insurer
  661  producing the business, the reporting of information concerning
  662  eligible risks, the payment of premium to the corporation, and
  663  arrangements for the adjustment and payment of hurricane claims
  664  incurred on eligible risks by the claims adjuster and personnel
  665  of the authorized insurer. Entering into a quota sharing
  666  insurance agreement between the corporation and an authorized
  667  insurer is voluntary and at the discretion of the authorized
  668  insurer.
  669         3. May provide that the corporation may employ or otherwise
  670  contract with individuals or other entities to provide
  671  administrative or professional services that may be appropriate
  672  to effectuate the plan. The corporation may borrow funds by
  673  issuing bonds or by incurring other indebtedness, and shall have
  674  other powers reasonably necessary to effectuate the requirements
  675  of this subsection, including, without limitation, the power to
  676  issue bonds and incur other indebtedness in order to refinance
  677  outstanding bonds or other indebtedness. The corporation may
  678  seek judicial validation of its bonds or other indebtedness
  679  under chapter 75. The corporation may issue bonds or incur other
  680  indebtedness, or have bonds issued on its behalf by a unit of
  681  local government pursuant to subparagraph (q)2. in the absence
  682  of a hurricane or other weather-related event, upon a
  683  determination by the corporation, subject to approval by the
  684  office, that such action would enable it to efficiently meet the
  685  financial obligations of the corporation and that such
  686  financings are reasonably necessary to effectuate the
  687  requirements of this subsection. The corporation may take all
  688  actions needed to facilitate tax-free status for such bonds or
  689  indebtedness, including formation of trusts or other affiliated
  690  entities. The corporation may pledge assessments, projected
  691  recoveries from the Florida Hurricane Catastrophe Fund, other
  692  reinsurance recoverables, policyholder surcharges and other
  693  surcharges, and other funds available to the corporation as
  694  security for bonds or other indebtedness. In recognition of s.
  695  10, Art. I of the State Constitution, prohibiting the impairment
  696  of obligations of contracts, it is the intent of the Legislature
  697  that no action be taken whose purpose is to impair any bond
  698  indenture or financing agreement or any revenue source committed
  699  by contract to such bond or other indebtedness.
  700         4. Must require that the corporation operate subject to the
  701  supervision and approval of a board of governors consisting of
  702  nine individuals who are residents of this state and who are
  703  from different geographical areas of the state, one of whom is
  704  appointed by the Governor and serves solely to advocate on
  705  behalf of the consumer. The appointment of a consumer
  706  representative by the Governor is deemed to be within the scope
  707  of the exemption provided in s. 112.313(7)(b) and is in addition
  708  to the appointments authorized under sub-subparagraph a.
  709         a. The Governor, the Chief Financial Officer, the President
  710  of the Senate, and the Speaker of the House of Representatives
  711  shall each appoint two members of the board. At least one of the
  712  two members appointed by each appointing officer must have
  713  demonstrated expertise in insurance and be deemed to be within
  714  the scope of the exemption provided in s. 112.313(7)(b) at the
  715  time of appointment or reappointment. The Chief Financial
  716  Officer shall designate one of the appointees as chair. On or
  717  after July 1, 2022, an appointee designated as chair must have
  718  demonstrated expertise in insurance or must have at least 1 year
  719  of experience serving on the board of governors. All board
  720  members serve at the pleasure of the appointing officer. All
  721  members of the board are subject to removal at will by the
  722  officers who appointed them. All board members, including the
  723  chair, must be appointed to serve for 3-year terms beginning
  724  annually on a date designated by the plan. However, for the
  725  first term beginning on or after July 1, 2009, each appointing
  726  officer shall appoint one member of the board for a 2-year term
  727  and one member for a 3-year term. A board vacancy shall be
  728  filled for the unexpired term by the appointing officer. The
  729  Chief Financial Officer shall appoint a technical advisory group
  730  to provide information and advice to the board in connection
  731  with the board’s duties under this subsection. The executive
  732  director and senior managers of the corporation shall be engaged
  733  by the board and serve at the pleasure of the board. The
  734  executive director must, at the time of the appointment, have
  735  the experience, character, and qualifications required under s.
  736  624.404(3) to serve as the chief executive officer of an
  737  insurer. Any executive director appointed on or after July 1,
  738  2006, is subject to confirmation by the Senate. The executive
  739  director is responsible for employing other staff as the
  740  corporation may require, subject to review and concurrence by
  741  the board. As used in this sub-subparagraph, the term
  742  “demonstrated expertise in insurance” means at least 10 years’
  743  experience:
  744         (I)In property and casualty insurance as a full-time
  745  employee, officer, or owner of a licensed insurance agency or an
  746  insurer authorized to transact property insurance in this state;
  747  or
  748         (II)As an insurance regulator or as an executive or
  749  officer of an insurance trade association.
  750         b. The board shall create a Market Accountability Advisory
  751  Committee to assist the corporation in developing awareness of
  752  its rates and its customer and agent service levels in
  753  relationship to the voluntary market insurers writing similar
  754  coverage.
  755         (I) The members of the advisory committee consist of the
  756  following 11 persons, one of whom must be elected chair by the
  757  members of the committee: four representatives, one appointed by
  758  the Florida Association of Insurance Agents, one by the Florida
  759  Association of Insurance and Financial Advisors, one by the
  760  Professional Insurance Agents of Florida, and one by the Latin
  761  American Association of Insurance Agencies; three
  762  representatives appointed by the insurers with the three highest
  763  voluntary market share of residential property insurance
  764  business in the state; one representative from the Office of
  765  Insurance Regulation; one consumer appointed by the board who is
  766  insured by the corporation at the time of appointment to the
  767  committee; one representative appointed by the Florida
  768  Association of Realtors; and one representative appointed by the
  769  Florida Bankers Association. All members shall be appointed to
  770  3-year terms and may serve for consecutive terms.
  771         (II) The committee shall report to the corporation at each
  772  board meeting on insurance market issues which may include rates
  773  and rate competition with the voluntary market; service,
  774  including policy issuance, claims processing, and general
  775  responsiveness to policyholders, applicants, and agents; and
  776  matters relating to depopulation.
  777         5. Must provide a procedure for determining the eligibility
  778  of a risk for coverage, as follows:
  779         a. Subject to s. 627.3517, with respect to personal lines
  780  residential risks, if the risk is offered coverage from an
  781  authorized insurer at the insurer’s approved rate under a
  782  standard policy including wind coverage or, if consistent with
  783  the insurer’s underwriting rules as filed with the office, a
  784  basic policy including wind coverage, for a new application to
  785  the corporation for coverage, the risk is not eligible for any
  786  policy issued by the corporation unless the premium for coverage
  787  from the authorized insurer is more than 20 percent greater than
  788  the premium for comparable coverage from the corporation.
  789  Whenever an offer of coverage for a personal lines residential
  790  risk is received for a policyholder of the corporation at
  791  renewal from an authorized insurer, if the offer is equal to or
  792  less than the corporation’s renewal premium for comparable
  793  coverage, the risk is not eligible for coverage with the
  794  corporation unless the premium for coverage from the authorized
  795  insurer is more than 20 percent greater than the renewal premium
  796  for comparable coverage from the corporation. If the risk is not
  797  able to obtain such offer, the risk is eligible for a standard
  798  policy including wind coverage or a basic policy including wind
  799  coverage issued by the corporation; however, if the risk could
  800  not be insured under a standard policy including wind coverage
  801  regardless of market conditions, the risk is eligible for a
  802  basic policy including wind coverage unless rejected under
  803  subparagraph 8. However, a policyholder removed from the
  804  corporation through an assumption agreement remains eligible for
  805  coverage from the corporation until the end of the assumption
  806  period. The corporation shall determine the type of policy to be
  807  provided on the basis of objective standards specified in the
  808  underwriting manual and based on generally accepted underwriting
  809  practices.
  810         (I) If the risk accepts an offer of coverage through the
  811  market assistance plan or through a mechanism established by the
  812  corporation other than a plan established by s. 627.3518, before
  813  a policy is issued to the risk by the corporation or during the
  814  first 30 days of coverage by the corporation, and the producing
  815  agent who submitted the application to the plan or to the
  816  corporation is not currently appointed by the insurer, the
  817  insurer shall:
  818         (A) Pay to the producing agent of record of the policy for
  819  the first year, an amount that is the greater of the insurer’s
  820  usual and customary commission for the type of policy written or
  821  a fee equal to the usual and customary commission of the
  822  corporation; or
  823         (B) Offer to allow the producing agent of record of the
  824  policy to continue servicing the policy for at least 1 year and
  825  offer to pay the agent the greater of the insurer’s or the
  826  corporation’s usual and customary commission for the type of
  827  policy written.
  828  
  829  If the producing agent is unwilling or unable to accept
  830  appointment, the new insurer shall pay the agent in accordance
  831  with sub-sub-sub-subparagraph (A).
  832         (II) If the corporation enters into a contractual agreement
  833  for a take-out plan, the producing agent of record of the
  834  corporation policy is entitled to retain any unearned commission
  835  on the policy, and the insurer shall:
  836         (A) Pay to the producing agent of record, for the first
  837  year, an amount that is the greater of the insurer’s usual and
  838  customary commission for the type of policy written or a fee
  839  equal to the usual and customary commission of the corporation;
  840  or
  841         (B) Offer to allow the producing agent of record to
  842  continue servicing the policy for at least 1 year and offer to
  843  pay the agent the greater of the insurer’s or the corporation’s
  844  usual and customary commission for the type of policy written.
  845  
  846  If the producing agent is unwilling or unable to accept
  847  appointment, the new insurer shall pay the agent in accordance
  848  with sub-sub-sub-subparagraph (A).
  849         b. With respect to commercial lines residential risks, for
  850  a new application to the corporation for coverage, if the risk
  851  is offered coverage under a policy including wind coverage from
  852  an authorized insurer at its approved rate, the risk is not
  853  eligible for a policy issued by the corporation unless the
  854  premium for coverage from the authorized insurer is more than 20
  855  15 percent greater than the premium for comparable coverage from
  856  the corporation. Whenever an offer of coverage for a commercial
  857  lines residential risk is received for a policyholder of the
  858  corporation at renewal from an authorized insurer, if the offer
  859  is equal to or less than the corporation’s renewal premium for
  860  comparable coverage, the risk is not eligible for coverage with
  861  the corporation unless the premium for coverage from the
  862  authorized insurer is more than 20 percent greater than the
  863  renewal premium for comparable coverage from the corporation. If
  864  the risk is not able to obtain any such offer, the risk is
  865  eligible for a policy including wind coverage issued by the
  866  corporation. However, a policyholder removed from the
  867  corporation through an assumption agreement remains eligible for
  868  coverage from the corporation until the end of the assumption
  869  period.
  870         (I) If the risk accepts an offer of coverage through the
  871  market assistance plan or through a mechanism established by the
  872  corporation other than a plan established by s. 627.3518, before
  873  a policy is issued to the risk by the corporation or during the
  874  first 30 days of coverage by the corporation, and the producing
  875  agent who submitted the application to the plan or the
  876  corporation is not currently appointed by the insurer, the
  877  insurer shall:
  878         (A) Pay to the producing agent of record of the policy, for
  879  the first year, an amount that is the greater of the insurer’s
  880  usual and customary commission for the type of policy written or
  881  a fee equal to the usual and customary commission of the
  882  corporation; or
  883         (B) Offer to allow the producing agent of record of the
  884  policy to continue servicing the policy for at least 1 year and
  885  offer to pay the agent the greater of the insurer’s or the
  886  corporation’s usual and customary commission for the type of
  887  policy written.
  888  
  889  If the producing agent is unwilling or unable to accept
  890  appointment, the new insurer shall pay the agent in accordance
  891  with sub-sub-sub-subparagraph (A).
  892         (II) If the corporation enters into a contractual agreement
  893  for a take-out plan, the producing agent of record of the
  894  corporation policy is entitled to retain any unearned commission
  895  on the policy, and the insurer shall:
  896         (A) Pay to the producing agent of record, for the first
  897  year, an amount that is the greater of the insurer’s usual and
  898  customary commission for the type of policy written or a fee
  899  equal to the usual and customary commission of the corporation;
  900  or
  901         (B) Offer to allow the producing agent of record to
  902  continue servicing the policy for at least 1 year and offer to
  903  pay the agent the greater of the insurer’s or the corporation’s
  904  usual and customary commission for the type of policy written.
  905  
  906  If the producing agent is unwilling or unable to accept
  907  appointment, the new insurer shall pay the agent in accordance
  908  with sub-sub-sub-subparagraph (A).
  909         c. For purposes of determining comparable coverage under
  910  sub-subparagraphs a. and b., the comparison must be based on
  911  those forms and coverages that are reasonably comparable. The
  912  corporation may rely on a determination of comparable coverage
  913  and premium made by the producing agent who submits the
  914  application to the corporation, made in the agent’s capacity as
  915  the corporation’s agent. A comparison may be made solely of the
  916  premium with respect to the main building or structure only on
  917  the following basis: the same coverage A or other building
  918  limits; the same percentage hurricane deductible that applies on
  919  an annual basis or that applies to each hurricane for commercial
  920  residential property; the same percentage of ordinance and law
  921  coverage, if the same limit is offered by both the corporation
  922  and the authorized insurer; the same mitigation credits, to the
  923  extent the same types of credits are offered both by the
  924  corporation and the authorized insurer; the same method for loss
  925  payment, such as replacement cost or actual cash value, if the
  926  same method is offered both by the corporation and the
  927  authorized insurer in accordance with underwriting rules; and
  928  any other form or coverage that is reasonably comparable as
  929  determined by the board. If an application is submitted to the
  930  corporation for wind-only coverage in the coastal account, the
  931  premium for the corporation’s wind-only policy plus the premium
  932  for the ex-wind policy that is offered by an authorized insurer
  933  to the applicant must be compared to the premium for multiperil
  934  coverage offered by an authorized insurer, subject to the
  935  standards for comparison specified in this subparagraph. If the
  936  corporation or the applicant requests from the authorized
  937  insurer a breakdown of the premium of the offer by types of
  938  coverage so that a comparison may be made by the corporation or
  939  its agent and the authorized insurer refuses or is unable to
  940  provide such information, the corporation may treat the offer as
  941  not being an offer of coverage from an authorized insurer at the
  942  insurer’s approved rate.
  943         6. Must include rules for classifications of risks and
  944  rates.
  945         7. Must provide that if premium and investment income for
  946  an account attributable to a particular calendar year are in
  947  excess of projected losses and expenses for the account
  948  attributable to that year, such excess shall be held in surplus
  949  in the account. Such surplus must be available to defray
  950  deficits in that account as to future years and used for that
  951  purpose before assessing assessable insurers and assessable
  952  insureds as to any calendar year.
  953         8. Must provide objective criteria and procedures to be
  954  uniformly applied to all applicants in determining whether an
  955  individual risk is so hazardous as to be uninsurable. In making
  956  this determination and in establishing the criteria and
  957  procedures, the following must be considered:
  958         a. Whether the likelihood of a loss for the individual risk
  959  is substantially higher than for other risks of the same class;
  960  and
  961         b. Whether the uncertainty associated with the individual
  962  risk is such that an appropriate premium cannot be determined.
  963  
  964  The acceptance or rejection of a risk by the corporation shall
  965  be construed as the private placement of insurance, and the
  966  provisions of chapter 120 do not apply.
  967         9. Must provide that the corporation make its best efforts
  968  to procure catastrophe reinsurance at reasonable rates, to cover
  969  its projected 100-year probable maximum loss as determined by
  970  the board of governors. If catastrophe reinsurance is not
  971  available at reasonable rates, the corporation need not purchase
  972  it, but the corporation shall include the costs of reinsurance
  973  to cover its projected 100-year probable maximum loss in its
  974  rate calculations even if it does not purchase catastrophe
  975  reinsurance.
  976         10. The policies issued by the corporation must provide
  977  that if the corporation or the market assistance plan obtains an
  978  offer from an authorized insurer to cover the risk at its
  979  approved rates, the risk is no longer eligible for renewal
  980  through the corporation, except as otherwise provided in this
  981  subsection.
  982         11. Corporation policies and applications must include a
  983  notice that the corporation policy could, under this section, be
  984  replaced with a policy issued by an authorized insurer which
  985  does not provide coverage identical to the coverage provided by
  986  the corporation. The notice must also specify that acceptance of
  987  corporation coverage creates a conclusive presumption that the
  988  applicant or policyholder is aware of this potential.
  989         12. May establish, subject to approval by the office,
  990  different eligibility requirements and operational procedures
  991  for any line or type of coverage for any specified county or
  992  area if the board determines that such changes are justified due
  993  to the voluntary market being sufficiently stable and
  994  competitive in such area or for such line or type of coverage
  995  and that consumers who, in good faith, are unable to obtain
  996  insurance through the voluntary market through ordinary methods
  997  continue to have access to coverage from the corporation. If
  998  coverage is sought in connection with a real property transfer,
  999  the requirements and procedures may not provide an effective
 1000  date of coverage later than the date of the closing of the
 1001  transfer as established by the transferor, the transferee, and,
 1002  if applicable, the lender.
 1003         13. Must provide that, with respect to the coastal account,
 1004  any assessable insurer with a surplus as to policyholders of $25
 1005  million or less writing 25 percent or more of its total
 1006  countrywide property insurance premiums in this state may
 1007  petition the office, within the first 90 days of each calendar
 1008  year, to qualify as a limited apportionment company. A regular
 1009  assessment levied by the corporation on a limited apportionment
 1010  company for a deficit incurred by the corporation for the
 1011  coastal account may be paid to the corporation on a monthly
 1012  basis as the assessments are collected by the limited
 1013  apportionment company from its insureds, but a limited
 1014  apportionment company must begin collecting the regular
 1015  assessments not later than 90 days after the regular assessments
 1016  are levied by the corporation, and the regular assessments must
 1017  be paid in full within 15 months after being levied by the
 1018  corporation. A limited apportionment company shall collect from
 1019  its policyholders any emergency assessment imposed under sub
 1020  subparagraph (b)3.d. The plan must provide that, if the office
 1021  determines that any regular assessment will result in an
 1022  impairment of the surplus of a limited apportionment company,
 1023  the office may direct that all or part of such assessment be
 1024  deferred as provided in subparagraph (q)4. However, an emergency
 1025  assessment to be collected from policyholders under sub
 1026  subparagraph (b)3.d. may not be limited or deferred.
 1027         14. Must provide that the corporation appoint as its
 1028  licensed agents only those agents who throughout such
 1029  appointments also hold an appointment as defined in s. 626.015
 1030  by an insurer who is authorized to write and is actually writing
 1031  or renewing personal lines residential property coverage,
 1032  commercial residential property coverage, or commercial
 1033  nonresidential property coverage within the state.
 1034         15. Must provide a premium payment plan option to its
 1035  policyholders which, at a minimum, allows for quarterly and
 1036  semiannual payment of premiums. A monthly payment plan may, but
 1037  is not required to, be offered.
 1038         16. Must limit coverage on mobile homes or manufactured
 1039  homes built before 1994 to actual cash value of the dwelling
 1040  rather than replacement costs of the dwelling.
 1041         17. Must provide coverage for manufactured or mobile home
 1042  dwellings. Such coverage must also include the following
 1043  attached structures:
 1044         a. Screened enclosures that are aluminum framed or screened
 1045  enclosures that are not covered by the same or substantially the
 1046  same materials as those of the primary dwelling;
 1047         b. Carports that are aluminum or carports that are not
 1048  covered by the same or substantially the same materials as those
 1049  of the primary dwelling; and
 1050         c. Patios that have a roof covering that is constructed of
 1051  materials that are not the same or substantially the same
 1052  materials as those of the primary dwelling.
 1053  
 1054  The corporation shall make available a policy for mobile homes
 1055  or manufactured homes for a minimum insured value of at least
 1056  $3,000.
 1057         18. May provide such limits of coverage as the board
 1058  determines, consistent with the requirements of this subsection.
 1059         19. May require commercial property to meet specified
 1060  hurricane mitigation construction features as a condition of
 1061  eligibility for coverage.
 1062         20. Must provide that new or renewal policies issued by the
 1063  corporation on or after January 1, 2012, which cover sinkhole
 1064  loss do not include coverage for any loss to appurtenant
 1065  structures, driveways, sidewalks, decks, or patios that are
 1066  directly or indirectly caused by sinkhole activity. The
 1067  corporation shall exclude such coverage using a notice of
 1068  coverage change, which may be included with the policy renewal,
 1069  and not by issuance of a notice of nonrenewal of the excluded
 1070  coverage upon renewal of the current policy.
 1071         21. As of January 1, 2012, must require that the agent
 1072  obtain from an applicant for coverage from the corporation an
 1073  acknowledgment signed by the applicant, which includes, at a
 1074  minimum, the following statement:
 1075  
 1076                ACKNOWLEDGMENT OF POTENTIAL SURCHARGE              
 1077                      AND ASSESSMENT LIABILITY:                    
 1078  
 1079         1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
 1080  CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
 1081  DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
 1082  MY POLICY COULD BE SUBJECT TO SURCHARGES, WHICH WILL BE DUE AND
 1083  PAYABLE UPON RENEWAL, CANCELLATION, OR TERMINATION OF THE
 1084  POLICY, AND THAT THE SURCHARGES COULD BE AS HIGH AS 45 PERCENT
 1085  OF MY PREMIUM, OR A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA
 1086  LEGISLATURE.
 1087         2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
 1088  SURCHARGE, WHICH COULD BE AS HIGH AS 45 PERCENT OF MY PREMIUM,
 1089  BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND THAT TO
 1090  BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN
 1091  PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR RENEWING COVERAGE
 1092  WITH CITIZENS. I UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES
 1093  ARE REGULATED AND APPROVED BY THE STATE.
 1094         3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
 1095  ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
 1096  INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
 1097  FLORIDA LEGISLATURE.
 1098         4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
 1099  CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
 1100  STATE OF FLORIDA.
 1101  
 1102         a. The corporation shall maintain, in electronic format or
 1103  otherwise, a copy of the applicant’s signed acknowledgment and
 1104  provide a copy of the statement to the policyholder as part of
 1105  the first renewal after the effective date of this subparagraph.
 1106         b. The signed acknowledgment form creates a conclusive
 1107  presumption that the policyholder understood and accepted his or
 1108  her potential surcharge and assessment liability as a
 1109  policyholder of the corporation.
 1110         (n)1. Rates for coverage provided by the corporation must
 1111  be actuarially sound and subject to s. 627.062, except as
 1112  otherwise provided in this paragraph. The corporation shall file
 1113  its recommended rates with the office at least annually. The
 1114  corporation shall provide any additional information regarding
 1115  the rates which the office requires. The office shall consider
 1116  the recommendations of the board and issue a final order
 1117  establishing the rates for the corporation within 45 days after
 1118  the recommended rates are filed. The corporation may not pursue
 1119  an administrative challenge or judicial review of the final
 1120  order of the office.
 1121         2. In addition to the rates otherwise determined pursuant
 1122  to this paragraph, the corporation shall impose and collect an
 1123  amount equal to the premium tax provided in s. 624.509 to
 1124  augment the financial resources of the corporation.
 1125         3. After the public hurricane loss-projection model under
 1126  s. 627.06281 has been found to be accurate and reliable by the
 1127  Florida Commission on Hurricane Loss Projection Methodology, the
 1128  model shall be considered when establishing the windstorm
 1129  portion of the corporation’s rates. The corporation may use the
 1130  public model results in combination with the results of private
 1131  models to calculate rates for the windstorm portion of the
 1132  corporation’s rates. This subparagraph does not require or allow
 1133  the corporation to adopt rates lower than the rates otherwise
 1134  required or allowed by this paragraph.
 1135         4. The corporation must make a recommended actuarially
 1136  sound rate filing for each personal and commercial line of
 1137  business it writes.
 1138         5. Notwithstanding the board’s recommended rates and the
 1139  office’s final order regarding the corporation’s filed rates
 1140  under subparagraph 1., the corporation shall annually implement
 1141  a rate increase which, except for sinkhole coverage, does not
 1142  exceed the following for any single personal lines residential
 1143  policy issued by the corporation that covers an insured’s
 1144  primary residence, and any single commercial lines residential
 1145  policy issued by the corporation, excluding coverage changes and
 1146  surcharges:
 1147         a. Eleven percent for 2022.
 1148         b. Twelve percent for 2023.
 1149         c. Thirteen percent for 2024.
 1150         d. Fourteen percent for 2025.
 1151         e. Fifteen percent for 2026 and all subsequent years.
 1152         6. The corporation may also implement an increase to
 1153  reflect the effect on the corporation of the cash buildup factor
 1154  pursuant to s. 215.555(5)(b).
 1155         7. The corporation’s implementation of rates as prescribed
 1156  in subparagraph 5. shall cease for any line of business written
 1157  by the corporation upon the corporation’s implementation of
 1158  actuarially sound rates. Thereafter, the corporation shall
 1159  annually make a recommended actuarially sound rate filing for
 1160  each commercial and personal line of business the corporation
 1161  writes.
 1162         8.Any new personal lines residential policy written by the
 1163  corporation with an effective date on or after January 1, 2023,
 1164  which covers a risk for which the immediately preceding policy
 1165  covering such risk was written by an unsound insurer shall be
 1166  charged a premium for coverage that is the higher of the last
 1167  premium amount charged by the unsound insurer or the premium
 1168  charged by the corporation applicable to the policy. Premiums
 1169  established by the unsound insurer shall remain unchanged,
 1170  except for adjustments for coverage changes at renewal, until
 1171  such time as the corporation’s premium for that policy exceeds
 1172  this amount and thus the policy becomes subject to the
 1173  corporation’s annually approved rate.
 1174         9.As used in this paragraph, the term:
 1175         a.“Primary residence” means the dwelling that the insured
 1176  has represented as their permanent home on the insurance
 1177  application or otherwise to the corporation.
 1178         b.“Unsound insurer” means an insurer determined by the
 1179  Office of Insurance Regulation to be in unsound condition as
 1180  defined in s. 624.80(2) or an insurer placed in receivership
 1181  under chapter 631.
 1182         (q)1. The corporation shall certify to the office its needs
 1183  for annual assessments as to a particular calendar year, and for
 1184  any interim assessments that it deems to be necessary to sustain
 1185  operations as to a particular year pending the receipt of annual
 1186  assessments. Upon verification, the office shall approve such
 1187  certification, and the corporation shall levy such annual or
 1188  interim assessments. Such assessments shall be prorated as
 1189  provided in paragraph (b). The corporation shall take all
 1190  reasonable and prudent steps necessary to collect the amount of
 1191  assessments due from each assessable insurer, including, if
 1192  prudent, filing suit to collect the assessments, and the office
 1193  may provide such assistance to the corporation it deems
 1194  appropriate. If the corporation is unable to collect an
 1195  assessment from any assessable insurer, the uncollected
 1196  assessments shall be levied as an additional assessment against
 1197  the assessable insurers and any assessable insurer required to
 1198  pay an additional assessment as a result of such failure to pay
 1199  shall have a cause of action against such nonpaying assessable
 1200  insurer. Assessments shall be included as an appropriate factor
 1201  in the making of rates. The failure of a surplus lines agent to
 1202  collect and remit any regular or emergency assessment levied by
 1203  the corporation is considered to be a violation of s. 626.936
 1204  and subjects the surplus lines agent to the penalties provided
 1205  in that section.
 1206         2. The governing body of any unit of local government, any
 1207  residents of which are insured by the corporation, may issue
 1208  bonds as defined in s. 125.013 or s. 166.101 from time to time
 1209  to fund an assistance program, in conjunction with the
 1210  corporation, for the purpose of defraying deficits of the
 1211  corporation. In order to avoid needless and indiscriminate
 1212  proliferation, duplication, and fragmentation of such assistance
 1213  programs, any unit of local government, any residents of which
 1214  are insured by the corporation, may provide for the payment of
 1215  losses, regardless of whether or not the losses occurred within
 1216  or outside of the territorial jurisdiction of the local
 1217  government. Revenue bonds under this subparagraph may not be
 1218  issued until validated pursuant to chapter 75, unless a state of
 1219  emergency is declared by executive order or proclamation of the
 1220  Governor pursuant to s. 252.36 making such findings as are
 1221  necessary to determine that it is in the best interests of, and
 1222  necessary for, the protection of the public health, safety, and
 1223  general welfare of residents of this state and declaring it an
 1224  essential public purpose to permit certain municipalities or
 1225  counties to issue such bonds as will permit relief to claimants
 1226  and policyholders of the corporation. Any such unit of local
 1227  government may enter into such contracts with the corporation
 1228  and with any other entity created pursuant to this subsection as
 1229  are necessary to carry out this paragraph. Any bonds issued
 1230  under this subparagraph shall be payable from and secured by
 1231  moneys received by the corporation from emergency assessments
 1232  under sub-subparagraph (b)3.d., and assigned and pledged to or
 1233  on behalf of the unit of local government for the benefit of the
 1234  holders of such bonds. The funds, credit, property, and taxing
 1235  power of the state or of the unit of local government may shall
 1236  not be pledged for the payment of such bonds.
 1237         3.a. The corporation shall adopt one or more programs
 1238  subject to approval by the office for the reduction of both new
 1239  and renewal writings in the corporation. Beginning January 1,
 1240  2008, any program the corporation adopts for the payment of
 1241  bonuses to an insurer for each risk the insurer removes from the
 1242  corporation shall comply with s. 627.3511(2) and may not exceed
 1243  the amount referenced in s. 627.3511(2) for each risk removed.
 1244  The corporation may consider any prudent and not unfairly
 1245  discriminatory approach to reducing corporation writings, and
 1246  may adopt a credit against assessment liability or other
 1247  liability that provides an incentive for insurers to take risks
 1248  out of the corporation and to keep risks out of the corporation
 1249  by maintaining or increasing voluntary writings in counties or
 1250  areas in which corporation risks are highly concentrated and a
 1251  program to provide a formula under which an insurer voluntarily
 1252  taking risks out of the corporation by maintaining or increasing
 1253  voluntary writings will be relieved wholly or partially from
 1254  assessments under sub-subparagraph (b)3.a. However, any “take
 1255  out bonus” or payment to an insurer must be conditioned on the
 1256  property being insured for at least 5 years by the insurer,
 1257  unless canceled or nonrenewed by the policyholder. If the policy
 1258  is canceled or nonrenewed by the policyholder before the end of
 1259  the 5-year period, the amount of the take-out bonus must be
 1260  prorated for the time period the policy was insured. When the
 1261  corporation enters into a contractual agreement for a take-out
 1262  plan, the producing agent of record of the corporation policy is
 1263  entitled to retain any unearned commission on such policy, and
 1264  the insurer shall either:
 1265         (I) Pay to the producing agent of record of the policy, for
 1266  the first year, an amount which is the greater of the insurer’s
 1267  usual and customary commission for the type of policy written or
 1268  a policy fee equal to the usual and customary commission of the
 1269  corporation; or
 1270         (II) Offer to allow the producing agent of record of the
 1271  policy to continue servicing the policy for a period of not less
 1272  than 1 year and offer to pay the agent the insurer’s usual and
 1273  customary commission for the type of policy written. If the
 1274  producing agent is unwilling or unable to accept appointment by
 1275  the new insurer, the new insurer shall pay the agent in
 1276  accordance with sub-sub-subparagraph (I).
 1277         b. Any credit or exemption from regular assessments adopted
 1278  under this subparagraph shall last no longer than the 3 years
 1279  following the cancellation or expiration of the policy by the
 1280  corporation. With the approval of the office, the board may
 1281  extend such credits for an additional year if the insurer
 1282  guarantees an additional year of renewability for all policies
 1283  removed from the corporation, or for 2 additional years if the
 1284  insurer guarantees 2 additional years of renewability for all
 1285  policies so removed.
 1286         c. There shall be no credit, limitation, exemption, or
 1287  deferment from emergency assessments to be collected from
 1288  policyholders pursuant to sub-subparagraph (b)3.d.
 1289         d. Notwithstanding any other law, for purposes of a
 1290  depopulation, take-out, or keep-out program adopted by the
 1291  corporation, including an initial or renewal offer of coverage
 1292  made to a policyholder removed from the corporation pursuant to
 1293  such program, an eligible surplus lines insurer may participate
 1294  in the program in the same manner and on the same terms as an
 1295  authorized insurer, except as provided under this sub
 1296  subparagraph.
 1297         (I)The policy count of the corporation must be more than
 1298  700,000 within the 30 days before the time a take-out offer is
 1299  made by a surplus lines insurer.
 1300         (II) To qualify for participation, the surplus lines
 1301  insurer must first obtain approval from the office for its
 1302  depopulation, take-out, or keep-out plan and then comply with
 1303  all of the corporation’s requirements for the plan applicable to
 1304  admitted insurers and with all statutory provisions applicable
 1305  to the removal of policies from the corporation.
 1306         (III) In considering a surplus lines insurer’s request for
 1307  approval for its plan, the office shall determine whether the
 1308  surplus lines insurer meets the following requirements:
 1309         (A) Maintains a surplus of $50 million on a company or
 1310  pooled basis;
 1311         (B)Has a superior, excellent, exceptional, or equally
 1312  comparable financial strength rating by a rating agency
 1313  acceptable to the office;
 1314         (C) Maintains reserves, surplus, reinsurance, and
 1315  reinsurance equivalents sufficient to cover the insurer’s 100
 1316  year probable maximum hurricane loss at least twice in a single
 1317  hurricane season and submits such reinsurance to the office to
 1318  review for purposes of the take-out;
 1319         (D) Provides prominent notice to the policyholder before
 1320  the assumption of the policy that surplus lines policies are not
 1321  provided coverage by the Florida Insurance Guaranty Association
 1322  and provides an outline of any substantial differences in
 1323  coverage between the existing policy and the policy being
 1324  offered to the insured; and
 1325         (E) Provides policy coverage similar to that provided by
 1326  the corporation.
 1327         (IV)To obtain approval for a plan, the surplus lines
 1328  insurer must file the following with the office:
 1329         (A) Information requested by the office to demonstrate
 1330  compliance with s. 624.404(3), including biographical
 1331  affidavits, fingerprints processed pursuant to s. 624.34, and
 1332  the results of criminal history records checks for officers and
 1333  directors of the insurer and its parent or holding company;
 1334         (B) A service-of-process consent and agreement form
 1335  executed by the insurer;
 1336         (C) Proof that the insurer has been an eligible or
 1337  authorized insurer for at least 3 years;
 1338         (D) A duly authenticated copy of the insurer’s current
 1339  audited financial statement, in English, which, in the case of
 1340  statements originally made in the currencies of other countries,
 1341  expresses all monetary values in United States dollars, at an
 1342  exchange rate then current and shown in the statement, and
 1343  including any additional information relative to the insurer as
 1344  the office may request;
 1345         (E) A complete certified copy of the latest official
 1346  financial statement required by the insurer’s domiciliary state,
 1347  if different from the statement required by sub-sub-sub
 1348  subparagraph (D); and
 1349         (F)If applicable, a copy of the United States trust
 1350  account agreement.
 1351  
 1352  This sub-sub-subparagraph does not subject any surplus lines
 1353  insurer to requirements in addition to part VIII of chapter 626.
 1354  Surplus lines brokers making an offer of coverage under this
 1355  sub-subparagraph are not required to comply with s.
 1356  626.916(1)(a), (b), (c), or (e).
 1357         (V) Within 10 days after the date of assumption, the
 1358  surplus lines insurer assuming policies from the corporation
 1359  shall remit to the Bureau of Collateral Management within the
 1360  Department of Financial Services a special deposit equal to the
 1361  unearned premium net of unearned commissions on the assumed
 1362  block of business. The surplus lines insurer shall submit to the
 1363  office, along with the special deposit, an accounting of the
 1364  policies assumed and the amount of unearned premium for such
 1365  policies and a sworn affidavit attesting to the accuracy of the
 1366  accounting by an officer of the surplus lines insurer.
 1367  Thereafter, the surplus lines insurer shall make a filing within
 1368  10 days after the end of each calendar quarter attesting to the
 1369  unearned premium in force for the previous quarter on policies
 1370  assumed from the corporation and shall submit additional funds
 1371  with that filing if the special deposit is insufficient to cover
 1372  the unearned premium on assumed policies, or shall receive a
 1373  return of funds within 60 days if the special deposit exceeds
 1374  the amount of unearned premium required for assumed policies.
 1375  The special deposit is an asset of the surplus lines insurer
 1376  which is held by the department for the benefit of state
 1377  policyholders of the surplus lines insurer in the event of the
 1378  insolvency of the surplus lines insurer. If an order of
 1379  liquidation is entered in any state against the surplus lines
 1380  insurer, the department may use the special deposit for payment
 1381  of unearned premium or policy claims, return all or part of the
 1382  deposit to the domiciliary receiver, or use the funds in
 1383  accordance with any action authorized under part I of chapter
 1384  631 or in compliance with any order of a court having
 1385  jurisdiction over the insolvency.
 1386         (VI) In advance of a surplus lines insurer assuming a
 1387  policy, surplus lines brokers representing a surplus lines
 1388  insurer on a take-out program shall obtain confirmation, in
 1389  written or e-mail form, from each producing agent stating that
 1390  the agent is willing to participate in the take-out program with
 1391  the surplus lines insurer engaging in the take-out program. The
 1392  take-out program is also subject to s. 627.3517. If a
 1393  policyholder is selected for removal from the corporation by a
 1394  surplus lines insurer and an authorized insurer, the corporation
 1395  must give priority to the offer of coverage from the authorized
 1396  insurer.
 1397         (VII)(A)A risk that has a dwelling replacement cost of
 1398  $700,000 or more or a single condominium unit that has a
 1399  combined dwelling and contents replacement cost of $700,000 or
 1400  more is not eligible for coverage by the corporation if it is
 1401  offered comparable coverage from a qualified surplus lines
 1402  insurer at a premium no greater than the premium charged by the
 1403  corporation.
 1404         (B)A risk that has a dwelling replacement cost below
 1405  $700,000 or a single condominium unit that has a combined
 1406  dwelling and contents replacement cost below $700,000 remains
 1407  eligible for coverage by the corporation if it is offered
 1408  coverage from a qualified surplus lines insurer.
 1409         4. The plan shall provide for the deferment, in whole or in
 1410  part, of the assessment of an assessable insurer, other than an
 1411  emergency assessment collected from policyholders pursuant to
 1412  sub-subparagraph (b)3.d., if the office finds that payment of
 1413  the assessment would endanger or impair the solvency of the
 1414  insurer. In the event an assessment against an assessable
 1415  insurer is deferred in whole or in part, the amount by which
 1416  such assessment is deferred may be assessed against the other
 1417  assessable insurers in a manner consistent with the basis for
 1418  assessments set forth in paragraph (b).
 1419         5. Effective July 1, 2007, in order to evaluate the costs
 1420  and benefits of approved take-out plans, if the corporation pays
 1421  a bonus or other payment to an insurer for an approved take-out
 1422  plan, it shall maintain a record of the address or such other
 1423  identifying information on the property or risk removed in order
 1424  to track if and when the property or risk is later insured by
 1425  the corporation.
 1426         6. Any policy taken out, assumed, or removed from the
 1427  corporation is, as of the effective date of the take-out,
 1428  assumption, or removal, direct insurance issued by the insurer
 1429  and not by the corporation, even if the corporation continues to
 1430  service the policies. This subparagraph applies to policies of
 1431  the corporation and not policies taken out, assumed, or removed
 1432  from any other entity.
 1433         7. For a policy taken out, assumed, or removed from the
 1434  corporation, the insurer may, for a period of no more than 3
 1435  years, continue to use any of the corporation’s policy forms or
 1436  endorsements that apply to the policy taken out, removed, or
 1437  assumed without obtaining approval from the office for use of
 1438  such policy form or endorsement.
 1439         (x)1. The following records of the corporation are
 1440  confidential and exempt from the provisions of s. 119.07(1) and
 1441  s. 24(a), Art. I of the State Constitution:
 1442         a. Underwriting files, except that a policyholder or an
 1443  applicant shall have access to his or her own underwriting
 1444  files. Confidential and exempt underwriting file records may
 1445  also be released to other governmental agencies upon written
 1446  request and demonstration of need; such records held by the
 1447  receiving agency remain confidential and exempt as provided
 1448  herein.
 1449         b. Claims files, until termination of all litigation and
 1450  settlement of all claims arising out of the same incident,
 1451  although portions of the claims files may remain exempt, as
 1452  otherwise provided by law. Confidential and exempt claims file
 1453  records may be released to other governmental agencies upon
 1454  written request and demonstration of need; such records held by
 1455  the receiving agency remain confidential and exempt as provided
 1456  herein.
 1457         c. Records obtained or generated by an internal auditor
 1458  pursuant to a routine audit, until the audit is completed, or if
 1459  the audit is conducted as part of an investigation, until the
 1460  investigation is closed or ceases to be active. An investigation
 1461  is considered “active” while the investigation is being
 1462  conducted with a reasonable, good faith belief that it could
 1463  lead to the filing of administrative, civil, or criminal
 1464  proceedings.
 1465         d. Matters reasonably encompassed in privileged attorney
 1466  client communications.
 1467         e. Proprietary information licensed to the corporation
 1468  under contract and the contract provides for the confidentiality
 1469  of such proprietary information.
 1470         f. All information relating to the medical condition or
 1471  medical status of a corporation employee which is not relevant
 1472  to the employee’s capacity to perform his or her duties, except
 1473  as otherwise provided in this paragraph. Information that is
 1474  exempt includes shall include, but is not limited to,
 1475  information relating to workers’ compensation, insurance
 1476  benefits, and retirement or disability benefits.
 1477         g. Upon an employee’s entrance into the employee assistance
 1478  program, a program to assist any employee who has a behavioral
 1479  or medical disorder, substance abuse problem, or emotional
 1480  difficulty that affects the employee’s job performance, all
 1481  records relative to that participation are shall be confidential
 1482  and exempt from the provisions of s. 119.07(1) and s. 24(a),
 1483  Art. I of the State Constitution, except as otherwise provided
 1484  in s. 112.0455(11).
 1485         h. Information relating to negotiations for financing,
 1486  reinsurance, depopulation, or contractual services, until the
 1487  conclusion of the negotiations.
 1488         i. Minutes of closed meetings regarding underwriting files,
 1489  and minutes of closed meetings regarding an open claims file
 1490  until termination of all litigation and settlement of all claims
 1491  with regard to that claim, except that information otherwise
 1492  confidential or exempt by law must shall be redacted.
 1493         2. If an authorized insurer, a reinsurance intermediary, an
 1494  eligible surplus lines insurer, or an entity that has filed an
 1495  application with the office for licensure as a property and
 1496  casualty insurer in this state is considering writing or
 1497  assisting in the underwriting of a risk insured by the
 1498  corporation, relevant information from both the underwriting
 1499  files and confidential claims files may be released to the
 1500  insurer, reinsurance intermediary, eligible surplus lines
 1501  insurer, or entity that has been created to seek authority to
 1502  write property insurance in this state, provided that the
 1503  recipient insurer agrees in writing, notarized and under oath,
 1504  to maintain the confidentiality of such files. If a policy file
 1505  is transferred to an insurer, that policy file is no longer a
 1506  public record because it is not held by an agency subject to the
 1507  provisions of the public records law. Underwriting files and
 1508  confidential claims files may also be released to staff and the
 1509  board of governors of the market assistance plan established
 1510  pursuant to s. 627.3515, who must retain the confidentiality of
 1511  such files, except such files may be released to authorized
 1512  insurers that are considering assuming the risks to which the
 1513  files apply, provided the insurer agrees in writing, notarized
 1514  and under oath, to maintain the confidentiality of such files.
 1515  Finally, the corporation or the board or staff of the market
 1516  assistance plan may make the following information obtained from
 1517  underwriting files and confidential claims files available to an
 1518  entity that has obtained a permit to become an authorized
 1519  insurer, a reinsurer that may provide reinsurance under s.
 1520  624.610, a licensed reinsurance broker, a licensed rating
 1521  organization, a modeling company, or a licensed general lines
 1522  insurance agent: name, address, and telephone number of the
 1523  residential property owner or insured; location of the risk;
 1524  rating information; loss history; and policy type. The receiving
 1525  person must retain the confidentiality of the information
 1526  received and may use the information only for the purposes of
 1527  developing a take-out plan or a rating plan to be submitted to
 1528  the office for approval or otherwise analyzing the underwriting
 1529  of a risk or risks insured by the corporation on behalf of the
 1530  private insurance market. A licensed general lines insurance
 1531  agent may not use such information for the direct solicitation
 1532  of policyholders.
 1533         3. A policyholder who has filed suit against the
 1534  corporation has the right to discover the contents of his or her
 1535  own claims file to the same extent that discovery of such
 1536  contents would be available from a private insurer in litigation
 1537  as provided by the Florida Rules of Civil Procedure, the Florida
 1538  Evidence Code, and other applicable law. Pursuant to subpoena, a
 1539  third party has the right to discover the contents of an
 1540  insured’s or applicant’s underwriting or claims file to the same
 1541  extent that discovery of such contents would be available from a
 1542  private insurer by subpoena as provided by the Florida Rules of
 1543  Civil Procedure, the Florida Evidence Code, and other applicable
 1544  law, and subject to any confidentiality protections requested by
 1545  the corporation and agreed to by the seeking party or ordered by
 1546  the court. The corporation may release confidential underwriting
 1547  and claims file contents and information as it deems necessary
 1548  and appropriate to underwrite or service insurance policies and
 1549  claims, subject to any confidentiality protections deemed
 1550  necessary and appropriate by the corporation.
 1551         4. Portions of meetings of the corporation are exempt from
 1552  the provisions of s. 286.011 and s. 24(b), Art. I of the State
 1553  Constitution wherein confidential underwriting files or
 1554  confidential open claims files are discussed. All portions of
 1555  corporation meetings which are closed to the public shall be
 1556  recorded by a court reporter. The court reporter shall record
 1557  the times of commencement and termination of the meeting, all
 1558  discussion and proceedings, the names of all persons present at
 1559  any time, and the names of all persons speaking. No portion of
 1560  any closed meeting shall be off the record. Subject to the
 1561  provisions hereof and s. 119.07(1)(d)-(f), the court reporter’s
 1562  notes of any closed meeting shall be retained by the corporation
 1563  for a minimum of 5 years. A copy of the transcript, less any
 1564  exempt matters, of any closed meeting wherein claims are
 1565  discussed shall become public as to individual claims after
 1566  settlement of the claim.
 1567         (ii) The corporation shall revise the programs adopted
 1568  pursuant to sub-subparagraph (q)3.a. for personal lines
 1569  residential policies to maximize policyholder options and
 1570  encourage increased participation by insurers and agents. After
 1571  January 1, 2017, a policy may not be taken out of the
 1572  corporation unless the provisions of this paragraph are met.
 1573         1. The corporation must publish a periodic schedule of
 1574  cycles during which an insurer may identify, and notify the
 1575  corporation of, policies that the insurer is requesting to take
 1576  out. A request must include a description of the coverage
 1577  offered and an estimated premium and must be submitted to the
 1578  corporation in a form and manner prescribed by the corporation.
 1579         2. The corporation must maintain and make available to the
 1580  agent of record a consolidated list of all insurers requesting
 1581  to take out a policy. The list must include a description of the
 1582  coverage offered and the estimated premium for each take-out
 1583  request.
 1584         3. The corporation must provide written notice to the
 1585  policyholder and the agent of record regarding all insurers
 1586  requesting to take out the policy, which notice must inform that
 1587  a take-out offer that is not more than 20 percent greater than
 1588  the corporation’s premium renders the risk ineligible for
 1589  coverage from and regarding the policyholder’s option to accept
 1590  a take-out offer or to reject all take-out offers and to remain
 1591  with the corporation. The notice must be in a format prescribed
 1592  by the corporation and include, for each take-out offer:
 1593         a. The amount of the estimated premium;
 1594         b. A description of the coverage; and
 1595         c. A comparison of the estimated premium and coverage
 1596  offered by the insurer to the estimated premium and coverage
 1597  provided by the corporation.
 1598         Section 4. Section 627.3518, Florida Statutes, is amended
 1599  to read:
 1600         627.3518 Citizens Property Insurance Corporation
 1601  policyholder eligibility clearinghouse program.—The purpose of
 1602  this section is to provide a framework for the corporation to
 1603  implement a clearinghouse program by January 1, 2014.
 1604         (1) As used in this section, the term:
 1605         (a) “Corporation” means Citizens Property Insurance
 1606  Corporation.
 1607         (b) “Exclusive agent” means any licensed insurance agent
 1608  that has, by contract, agreed to act exclusively for one company
 1609  or group of affiliated insurance companies and is disallowed by
 1610  the provisions of that contract to directly write for any other
 1611  unaffiliated insurer absent express consent from the company or
 1612  group of affiliated insurance companies.
 1613         (c) “Independent agent” means any licensed insurance agent
 1614  not described in paragraph (b).
 1615         (d) “Program” means the clearinghouse created under this
 1616  section.
 1617         (2) In order to confirm eligibility with the corporation
 1618  and to enhance access of new applicants for coverage and
 1619  existing policyholders of the corporation to offers of coverage
 1620  from authorized insurers, the corporation shall establish a
 1621  program for personal residential risks in order to facilitate
 1622  the diversion of ineligible applicants and existing
 1623  policyholders from the corporation into the voluntary insurance
 1624  market. The corporation shall also develop appropriate
 1625  procedures for facilitating the diversion of ineligible
 1626  applicants and existing policyholders for commercial residential
 1627  coverage into the private insurance market and shall report such
 1628  procedures to the President of the Senate and the Speaker of the
 1629  House of Representatives by January 1, 2014.
 1630         (3) The corporation board shall establish the clearinghouse
 1631  program as an organizational unit within the corporation. The
 1632  program shall have all the rights and responsibilities in
 1633  carrying out its duties as a licensed general lines agent, but
 1634  may not be required to employ or engage a licensed general lines
 1635  agent or to maintain an insurance agency license to carry out
 1636  its activities in the solicitation and placement of insurance
 1637  coverage. In establishing the program, the corporation may:
 1638         (a) Require all new applications, and all policies due for
 1639  renewal, to be submitted for coverage to the program in order to
 1640  facilitate obtaining an offer of coverage from an authorized
 1641  insurer before binding or renewing coverage by the corporation.
 1642         (b) Employ or otherwise contract with individuals or other
 1643  entities for appropriate administrative or professional services
 1644  to effectuate the plan within the corporation in accordance with
 1645  the applicable purchasing requirements under s. 627.351.
 1646         (c) Enter into contracts with any authorized insurer to
 1647  participate in the program and accept an appointment by such
 1648  insurer.
 1649         (d) Provide funds to operate the program. Insurers and
 1650  agents participating in the program are not required to pay a
 1651  fee to offset or partially offset the cost of the program or use
 1652  the program for renewal of policies initially written through
 1653  the clearinghouse.
 1654         (e) Develop an enhanced application that includes
 1655  information to assist private insurers in determining whether to
 1656  make an offer of coverage through the program.
 1657         (f) For personal lines residential risks, require, before
 1658  approving all new applications for coverage by the corporation,
 1659  that every application be subject to a period of 2 business days
 1660  when any insurer participating in the program may select the
 1661  application for coverage. The insurer may issue a binder on any
 1662  policy selected for coverage for a period of at least 30 days
 1663  but not more than 60 days.
 1664         (4) Any authorized insurer may participate in the program;
 1665  however, participation is not mandatory for any insurer.
 1666  Insurers making offers of coverage to new applicants or renewal
 1667  policyholders through the program:
 1668         (a) May not be required to individually appoint any agent
 1669  whose customer is underwritten and bound through the program.
 1670  Notwithstanding s. 626.112, insurers are not required to appoint
 1671  any agent on a policy underwritten through the program for as
 1672  long as that policy remains with the insurer. Insurers may, at
 1673  their election, appoint any agent whose customer is initially
 1674  underwritten and bound through the program. In the event an
 1675  insurer accepts a policy from an agent who is not appointed
 1676  pursuant to this paragraph, and thereafter elects to accept a
 1677  policy from such agent, the provisions of s. 626.112 requiring
 1678  appointment apply to the agent.
 1679         (b) Must enter into a limited agency agreement with each
 1680  agent that is not appointed in accordance with paragraph (a) and
 1681  whose customer is underwritten and bound through the program.
 1682         (c) Must enter into its standard agency agreement with each
 1683  agent whose customer is underwritten and bound through the
 1684  program when that agent has been appointed by the insurer
 1685  pursuant to s. 626.112.
 1686         (d) Must comply with s. 627.4133(2).
 1687         (e) May participate through their single-designated
 1688  managing general agent or broker; however, the provisions of
 1689  paragraph (6)(a) regarding ownership, control, and use of the
 1690  expirations continue to apply.
 1691         (f) Must pay to the producing agent a commission equal to
 1692  that paid by the corporation or the usual and customary
 1693  commission paid by the insurer for that line of business,
 1694  whichever is greater.
 1695         (5) Notwithstanding s. 627.3517, any applicant for new
 1696  coverage from the corporation is not eligible for coverage from
 1697  the corporation if provided an offer of coverage from an
 1698  authorized insurer through the program at a premium that is at
 1699  or below the eligibility threshold established in s.
 1700  627.351(6)(c)5.a. Whenever an offer of coverage for a personal
 1701  lines risk is received for a policyholder of the corporation at
 1702  renewal from an authorized insurer through the program, if the
 1703  offer is at or below the eligibility threshold established in s.
 1704  627.351(6)(c)5.a. equal to or less than the corporation’s
 1705  renewal premium for comparable coverage, the risk is not
 1706  eligible for coverage with the corporation. In the event an
 1707  offer of coverage for a new applicant is received from an
 1708  authorized insurer through the program, and the premium offered
 1709  exceeds the eligibility threshold contained in s.
 1710  627.351(6)(c)5.a., the applicant or insured may elect to accept
 1711  such coverage, or may elect to accept or continue coverage with
 1712  the corporation. In the event an offer of coverage for a
 1713  personal lines risk is received from an authorized insurer at
 1714  renewal through the program, and the premium offered is at or
 1715  below the eligibility threshold established in s.
 1716  627.351(6)(c)5.a. more than the corporation’s renewal premium
 1717  for comparable coverage, the insured is not eligible to may
 1718  elect to accept such coverage, or may elect to accept or
 1719  continue coverage with the corporation. Section
 1720  627.351(6)(c)5.a.(I) does not apply to an offer of coverage from
 1721  an authorized insurer obtained through the program. An applicant
 1722  for coverage from the corporation who was declared ineligible
 1723  for coverage at renewal by the corporation in the previous 36
 1724  months due to an offer of coverage pursuant to this subsection
 1725  shall be considered a renewal under this section if the
 1726  corporation determines that the authorized insurer making the
 1727  offer of coverage pursuant to this subsection continues to
 1728  insure the applicant and increased the rate on the policy in
 1729  excess of the increase allowed for the corporation under s.
 1730  627.351(6)(n)5.
 1731         (6) Independent insurance agents submitting new
 1732  applications for coverage or that are the agent of record on a
 1733  renewal policy submitted to the program:
 1734         (a) Are granted and must maintain ownership and the
 1735  exclusive use of expirations, records, or other written or
 1736  electronic information directly related to such applications or
 1737  renewals written through the corporation or through an insurer
 1738  participating in the program, notwithstanding s.
 1739  627.351(6)(c)5.a.(I)(B) and (II)(B). Such ownership is granted
 1740  for as long as the insured remains with the agency or until sold
 1741  or surrendered in writing by the agent. Contracts with the
 1742  corporation or required by the corporation must not amend,
 1743  modify, interfere with, or limit such rights of ownership. Such
 1744  expirations, records, or other written or electronic information
 1745  may be used to review an application, issue a policy, or for any
 1746  other purpose necessary for placing such business through the
 1747  program.
 1748         (b) May not be required to be appointed by any insurer
 1749  participating in the program for policies written solely through
 1750  the program, notwithstanding the provisions of s. 626.112.
 1751         (c) May accept an appointment from any insurer
 1752  participating in the program.
 1753         (d) May enter into either a standard or limited agency
 1754  agreement with the insurer, at the insurer’s option.
 1755  
 1756  Applicants ineligible for coverage in accordance with subsection
 1757  (5) remain ineligible if their independent agent is unwilling or
 1758  unable to enter into a standard or limited agency agreement with
 1759  an insurer participating in the program.
 1760         (7) Exclusive agents submitting new applications for
 1761  coverage or that are the agent of record on a renewal policy
 1762  submitted to the program:
 1763         (a) Must maintain ownership and the exclusive use of
 1764  expirations, records, or other written or electronic information
 1765  directly related to such applications or renewals written
 1766  through the corporation or through an insurer participating in
 1767  the program, notwithstanding s. 627.351(6)(c)5.a.(I)(B) and
 1768  (II)(B). Contracts with the corporation or required by the
 1769  corporation must not amend, modify, interfere with, or limit
 1770  such rights of ownership. Such expirations, records, or other
 1771  written or electronic information may be used to review an
 1772  application, issue a policy, or for any other purpose necessary
 1773  for placing such business through the program.
 1774         (b) May not be required to be appointed by any insurer
 1775  participating in the program for policies written solely through
 1776  the program, notwithstanding the provisions of s. 626.112.
 1777         (c) Must only facilitate the placement of an offer of
 1778  coverage from an insurer whose limited servicing agreement is
 1779  approved by that exclusive agent’s exclusive insurer.
 1780         (d) May enter into a limited servicing agreement with the
 1781  insurer making an offer of coverage, and only after the
 1782  exclusive agent’s insurer has approved the limited servicing
 1783  agreement terms. The exclusive agent’s insurer must approve a
 1784  limited service agreement for the program for any insurer for
 1785  which it has approved a service agreement for other purposes.
 1786  
 1787  Applicants ineligible for coverage in accordance with subsection
 1788  (5) remain ineligible if their exclusive agent is unwilling or
 1789  unable to enter into a standard or limited agency agreement with
 1790  an insurer making an offer of coverage to that applicant.
 1791         (8) Submission of an application for coverage by the
 1792  corporation to the program does not constitute the binding of
 1793  coverage by the corporation, and failure of the program to
 1794  obtain an offer of coverage by an insurer may not be considered
 1795  acceptance of coverage of the risk by the corporation.
 1796         (9) The 45-day notice of nonrenewal requirement set forth
 1797  in s. 627.4133(2)(b)5. applies when a policy is nonrenewed by
 1798  the corporation because the risk has received an offer of
 1799  coverage pursuant to this section which renders the risk
 1800  ineligible for coverage by the corporation.
 1801         (10) The program may not include commercial nonresidential
 1802  policies.
 1803         (11) Proprietary business information provided to the
 1804  corporation’s clearinghouse by insurers with respect to
 1805  identifying and selecting risks for an offer of coverage is
 1806  confidential and exempt from s. 119.07(1) and s. 24(a), Art. I
 1807  of the State Constitution.
 1808         (a) As used in this subsection, the term “proprietary
 1809  business information” means information, regardless of form or
 1810  characteristics, which is owned or controlled by an insurer and:
 1811         1. Is identified by the insurer as proprietary business
 1812  information and is intended to be and is treated by the insurer
 1813  as private in that the disclosure of the information would cause
 1814  harm to the insurer, an individual, or the company’s business
 1815  operations and has not been disclosed unless disclosed pursuant
 1816  to a statutory requirement, an order of a court or
 1817  administrative body, or a private agreement that provides that
 1818  the information will not be released to the public;
 1819         2. Is not otherwise readily ascertainable or publicly
 1820  available by proper means by other persons from another source
 1821  in the same configuration as provided to the clearinghouse; and
 1822         3. Includes:
 1823         a. Trade secrets, as defined in s. 688.002.
 1824         b. Information relating to competitive interests, the
 1825  disclosure of which would impair the competitive business of the
 1826  provider of the information.
 1827  
 1828  Proprietary business information may be found in underwriting
 1829  criteria or instructions which are used to identify and select
 1830  risks through the program for an offer of coverage and are
 1831  shared with the clearinghouse to facilitate the shopping of
 1832  risks with the insurer.
 1833         (b) The clearinghouse may disclose confidential and exempt
 1834  proprietary business information:
 1835         1. If the insurer to which it pertains gives prior written
 1836  consent;
 1837         2. Pursuant to a court order; or
 1838         3. To another state agency in this or another state or to a
 1839  federal agency if the recipient agrees in writing to maintain
 1840  the confidential and exempt status of the document, material, or
 1841  other information and has verified in writing its legal
 1842  authority to maintain such confidentiality.
 1843         Section 5. Subsections (2) and (4) of section 627.701,
 1844  Florida Statutes, are amended, and subsection (10) is added to
 1845  that section, to read:
 1846         627.701 Liability of insureds; coinsurance; deductibles.—
 1847         (2) Unless the office determines that the deductible
 1848  provision is clear and unambiguous, a property insurer may not
 1849  issue an insurance policy or contract covering real property in
 1850  this state which contains a deductible provision that:
 1851         (a) Applies solely to hurricane losses.
 1852         (b) States the deductible as a percentage rather than as a
 1853  specific amount of money.
 1854         (c)Applies a roof deductible as provided in subsection
 1855  (10).
 1856         (4)(a) Any policy that contains a separate hurricane
 1857  deductible must on its face include in boldfaced type no smaller
 1858  than 18 points the following statement: “THIS POLICY CONTAINS A
 1859  SEPARATE DEDUCTIBLE FOR HURRICANE LOSSES, WHICH MAY RESULT IN
 1860  HIGH OUT-OF-POCKET EXPENSES TO YOU.” A policy containing a
 1861  coinsurance provision applicable to hurricane losses must on its
 1862  face include in boldfaced type no smaller than 18 points the
 1863  following statement: “THIS POLICY CONTAINS A CO-PAY PROVISION
 1864  THAT MAY RESULT IN HIGH OUT-OF-POCKET EXPENSES TO YOU.”
 1865         (b) For any personal lines residential property insurance
 1866  policy containing a separate hurricane deductible, the insurer
 1867  shall compute and prominently display the actual dollar value of
 1868  the hurricane deductible on the declarations page of the policy
 1869  at issuance and, for renewal, on the renewal declarations page
 1870  of the policy or on the premium renewal notice.
 1871         (c) For any personal lines residential property insurance
 1872  policy containing an inflation guard rider, the insurer shall
 1873  compute and prominently display the actual dollar value of the
 1874  hurricane deductible on the declarations page of the policy at
 1875  issuance and, for renewal, on the renewal declarations page of
 1876  the policy or on the premium renewal notice. In addition, for
 1877  any personal lines residential property insurance policy
 1878  containing an inflation guard rider, the insurer shall notify
 1879  the policyholder of the possibility that the hurricane
 1880  deductible may be higher than indicated when loss occurs due to
 1881  application of the inflation guard rider. Such notification
 1882  shall be made on the declarations page of the policy at issuance
 1883  and, for renewal, on the renewal declarations page of the policy
 1884  or on the premium renewal notice.
 1885         (d)1. A personal lines residential property insurance
 1886  policy covering a risk valued at less than $500,000 may not have
 1887  a hurricane deductible in excess of 10 percent of the policy
 1888  dwelling limits, unless the following conditions are met:
 1889         a. The policyholder must personally write and provide to
 1890  the insurer the following statement in his or her own
 1891  handwriting and sign his or her name, which must also be signed
 1892  by every other named insured on the policy, and dated: “I do not
 1893  want the insurance on my home to pay for the first (specify
 1894  dollar value) of damage from hurricanes. I will pay those costs.
 1895  My insurance will not.”
 1896         b. If the structure insured by the policy is subject to a
 1897  mortgage or lien, the policyholder must provide the insurer with
 1898  a written statement from the mortgageholder or lienholder
 1899  indicating that the mortgageholder or lienholder approves the
 1900  policyholder electing to have the specified deductible.
 1901         2. A deductible subject to the requirements of this
 1902  paragraph applies for the term of the policy and for each
 1903  renewal thereafter. Changes to the deductible percentage may be
 1904  implemented only as of the date of renewal.
 1905         3. An insurer shall keep the original copy of the signed
 1906  statement required by this paragraph, electronically or
 1907  otherwise, and provide a copy to the policyholder providing the
 1908  signed statement. A signed statement meeting the requirements of
 1909  this paragraph creates a presumption that there was an informed,
 1910  knowing election of coverage.
 1911         4. The commission shall adopt rules providing appropriate
 1912  alternative methods for providing the statements required by
 1913  this section for policyholders who have a handicapping or
 1914  disabling condition that prevents them from providing a
 1915  handwritten statement.
 1916         (e)1.Any personal lines residential property insurance
 1917  policy that contains a separate roof deductible must on its face
 1918  include in boldfaced type no smaller than 18 points the
 1919  following statement: “THIS POLICY CONTAINS A SEPARATE DEDUCTIBLE
 1920  FOR ROOF LOSSES WHICH MAY RESULT IN HIGH OUT-OF-POCKET EXPENSES
 1921  TO YOU.
 1922         2.For any personal lines residential property insurance
 1923  policy containing a separate roof deductible, the insurer shall
 1924  compute and prominently display the actual dollar value of the
 1925  roof deductible on the declarations page of the policy at
 1926  issuance and, for renewal, on the renewal declarations page of
 1927  the policy or on the premium renewal notice.
 1928         (10)Notwithstanding any other provision of this section
 1929  and any other provision of law, a property insurer may require a
 1930  separate roof deductible as a condition of eligibility or
 1931  renewal of a residential property insurance policy if all of the
 1932  following conditions are met:
 1933         (a)The roof deductible does not exceed 2 percent of the
 1934  policy dwelling limits.
 1935         (b)The premium for such coverage includes an actuarially
 1936  sound premium discount or credit for the impact of the roof
 1937  deductible.
 1938         (c)If a roof deductible is added to the policy at renewal,
 1939  the insurer provides a notice of change in policy terms pursuant
 1940  to s. 627.43141.
 1941         (d)The roof deductible does not apply to:
 1942         1.A total loss to a primary structure in accordance with
 1943  the valued policy law under s. 627.702 which is caused by a
 1944  covered peril.
 1945         2.A roof loss that is caused by a hurricane as defined by
 1946  s. 627.4025(2).
 1947         3.A roof loss that can be repaired without replacement of
 1948  the roof.
 1949         (e)If a roof deductible is applied, no other policy
 1950  deductible may be applied to the loss. If, however, a roof
 1951  deductible is not applied, the all-other-perils deductible or
 1952  the hurricane deductible may be applied.
 1953         Section 6. Paragraph (a) of subsection (3) of section
 1954  627.7011, Florida Statutes, is amended to read:
 1955         627.7011 Homeowners’ policies; offer of replacement cost
 1956  coverage and law and ordinance coverage.—
 1957         (3) In the event of a loss for which a dwelling or personal
 1958  property is insured on the basis of replacement costs:
 1959         (a) For a dwelling, the insurer must initially pay at least
 1960  the actual cash value of the insured loss, less any applicable
 1961  deductible. The insurer shall pay any remaining amounts
 1962  necessary to perform such repairs as work is performed and
 1963  expenses are incurred. However, if a roof deductible under s.
 1964  627.701(10) is applied to the insured loss, the insurer may
 1965  limit the claim payment as to the roof to the actual cash value
 1966  of the loss to the roof until the insurer receives reasonable
 1967  proof of payment by the policyholder of the roof deductible.
 1968  Reasonable proof of payment includes a canceled check, money
 1969  order receipt, credit card statement, or copy of an executed
 1970  installment plan contract or other financing arrangement that
 1971  requires full payment of the deductible over time. If a total
 1972  loss of a dwelling occurs, the insurer shall pay the replacement
 1973  cost coverage without reservation or holdback of any
 1974  depreciation in value, pursuant to s. 627.702.
 1975         Section 7. Paragraph (b) of subsection (8) of section
 1976  627.70152, Florida Statutes, is amended to read:
 1977         627.70152 Suits arising under a property insurance policy.—
 1978         (8) ATTORNEY FEES.—
 1979         (b) In a suit arising under a residential or commercial
 1980  property insurance policy not brought by an assignee, if a court
 1981  dismisses a claimant’s suit pursuant to subsection (5), the
 1982  court may not award to the claimant any incurred attorney fees
 1983  for services rendered before the dismissal of the suit. When a
 1984  claimant’s suit is dismissed pursuant to subsection (5), the
 1985  defendant may be awarded reasonable attorney fees and costs
 1986  associated with securing the dismissal.
 1987         Section 8. For the purpose of incorporating the amendments
 1988  made by this act to section 627.351, Florida Statutes, in a
 1989  reference thereto, subsection (10) of section 624.424, Florida
 1990  Statutes, is reenacted to read:
 1991         624.424 Annual statement and other information.—
 1992         (10) Each insurer or insurer group doing business in this
 1993  state shall file on a quarterly basis in conjunction with
 1994  financial reports required by paragraph (1)(a) a supplemental
 1995  report on an individual and group basis on a form prescribed by
 1996  the commission with information on personal lines and commercial
 1997  lines residential property insurance policies in this state. The
 1998  supplemental report shall include separate information for
 1999  personal lines property policies and for commercial lines
 2000  property policies and totals for each item specified, including
 2001  premiums written for each of the property lines of business as
 2002  described in ss. 215.555(2)(c) and 627.351(6)(a). The report
 2003  shall include the following information for each county on a
 2004  monthly basis:
 2005         (a) Total number of policies in force at the end of each
 2006  month.
 2007         (b) Total number of policies canceled.
 2008         (c) Total number of policies nonrenewed.
 2009         (d) Number of policies canceled due to hurricane risk.
 2010         (e) Number of policies nonrenewed due to hurricane risk.
 2011         (f) Number of new policies written.
 2012         (g) Total dollar value of structure exposure under policies
 2013  that include wind coverage.
 2014         (h) Number of policies that exclude wind coverage.
 2015         Section 9. For the purpose of incorporating the amendments
 2016  made by this act to section 627.351, Florida Statutes, in a
 2017  reference thereto, section 627.3517, Florida Statutes, is
 2018  reenacted to read:
 2019         627.3517 Consumer choice.—No provision of s. 627.351, s.
 2020  627.3511, or s. 627.3515 shall be construed to impair the right
 2021  of any insurance risk apportionment plan policyholder, upon
 2022  receipt of any keepout or take-out offer, to retain his or her
 2023  current agent, so long as that agent is duly licensed and
 2024  appointed by the insurance risk apportionment plan or otherwise
 2025  authorized to place business with the insurance risk
 2026  apportionment plan. This right shall not be canceled, suspended,
 2027  impeded, abridged, or otherwise compromised by any rule, plan of
 2028  operation, or depopulation plan, whether through keepout, take
 2029  out, midterm assumption, or any other means, of any insurance
 2030  risk apportionment plan or depopulation plan, including, but not
 2031  limited to, those described in s. 627.351, s. 627.3511, or s.
 2032  627.3515. The commission shall adopt any rules necessary to
 2033  cause any insurance risk apportionment plan or market assistance
 2034  plan under such sections to demonstrate that the operations of
 2035  the plan do not interfere with, promote, or allow interference
 2036  with the rights created under this section. If the
 2037  policyholder’s current agent is unable or unwilling to be
 2038  appointed with the insurer making the take-out or keepout offer,
 2039  the policyholder shall not be disqualified from participation in
 2040  the appropriate insurance risk apportionment plan because of an
 2041  offer of coverage in the voluntary market. An offer of full
 2042  property insurance coverage by the insurer currently insuring
 2043  either the ex-wind or wind-only coverage on the policy to which
 2044  the offer applies shall not be considered a take-out or keepout
 2045  offer. Any rule, plan of operation, or plan of depopulation,
 2046  through keepout, take-out, midterm assumption, or any other
 2047  means, of any property insurance risk apportionment plan under
 2048  s. 627.351(2) or (6) is subject to ss. 627.351(2)(b) and (6)(c)
 2049  and 627.3511(4).
 2050         Section 10. For the purpose of incorporating the amendments
 2051  made by this act to section 627.351, Florida Statutes, in a
 2052  reference thereto, subsection (1) of section 627.712, Florida
 2053  Statutes, is reenacted to read:
 2054         627.712 Residential windstorm coverage required;
 2055  availability of exclusions for windstorm or contents.—
 2056         (1) An insurer issuing a residential property insurance
 2057  policy must provide windstorm coverage. Except as provided in
 2058  paragraph (2)(c), this section does not apply to risks that are
 2059  eligible for wind-only coverage from Citizens Property Insurance
 2060  Corporation under s. 627.351(6), and risks that are not eligible
 2061  for coverage from Citizens Property Insurance Corporation under
 2062  s. 627.351(6)(a)3. or 5. A risk ineligible for coverage by the
 2063  corporation under s. 627.351(6)(a)3. or 5. is exempt from this
 2064  section only if the risk is located within the boundaries of the
 2065  coastal account of the corporation.
 2066         Section 11. This act shall take effect July 1, 2022.