Florida Senate - 2024                                    SB 1716
       
       
        
       By Senator Boyd
       
       
       
       
       
       20-01288B-24                                          20241716__
    1                        A bill to be entitled                      
    2         An act relating to Citizens Property Insurance
    3         Corporation; amending s. 627.351, F.S.; providing that
    4         certain accounts for Citizens Property Insurance
    5         Corporation revenues, assets, liability, losses, and
    6         expenses are now maintained as the Citizens account;
    7         revising the requirements for certain coverages by the
    8         corporation; requiring the inclusion of quota share
    9         primary insurance in certain policies; deleting
   10         provisions relating to legislative goals; revising the
   11         definition of the term “assessments”; deleting
   12         provisions relating to emergency assessments upon
   13         determination of projected deficits; deleting
   14         provisions relating to funds available to the
   15         corporation as sources of revenue and bonds; deleting
   16         definitions; deleting provisions relating to the
   17         duties of the Florida Surplus Lines Service Office;
   18         deleting provisions relating to disposition of excess
   19         amounts of assessments and surcharges; defining terms;
   20         providing nonapplicability of certain provisions
   21         relating to personal lines residential risks coverage
   22         by the corporation; requiring insurers to pay, under
   23         certain circumstances, producing agents a certain
   24         amount or fee if the agents are unable to accept
   25         appointment due to failure to be licensed as surplus
   26         lines agents; providing nonapplicability of such
   27         payment requirement; revising eligibility for
   28         commercial lines residential risks coverage by the
   29         corporation; providing that commercial lines
   30         residential risks are not eligible for coverage by the
   31         corporation under certain circumstances; providing
   32         that comparisons of comparable coverages under certain
   33         personal lines residential risks and commercial lines
   34         residential risks do not apply to policies that do not
   35         cover primary residences; revising the corporation’s
   36         plan of operation; revising the required statements
   37         from applicants for coverage; revising the duties of
   38         the executive director of the corporation; authorizing
   39         the executive director to assign and appoint
   40         designees; deleting a nonapplicability provision
   41         relating to bond requirements; providing circumstances
   42         under which coverage rates are considered not
   43         competitive; revising the duties of the Office of
   44         Insurance Regulation relating to coverage rates;
   45         authorizing the corporation to pursue administrative
   46         challenges relating to coverage rates; revising
   47         requirements for coverage rate increases and coverage
   48         rates; authorizing assessed insureds of certain
   49         insurers to be relieved from assessments under certain
   50         circumstances; deleting provisions relating to certain
   51         insurer assessment deferments; deleting provisions
   52         relating to the intangibles of and coverage by the
   53         Florida Windstorm Underwriting Association and the
   54         corporation coastal account; authorizing the
   55         corporation and certain persons to make specified
   56         information obtained from underwriting files and
   57         confidential claims files available to licensed
   58         surplus lines agents; prohibiting such agents from
   59         using such information for specified purposes;
   60         revising the flood coverage requirements for personal
   61         lines residential policyholders; providing
   62         nonapplicability of provisions relating to take-out
   63         offers that are part of applications to participate in
   64         depopulation; authorizing the corporation to share its
   65         claims data with a specified entity; deleting
   66         provisions relating to resolutions of disputes and to
   67         determinations of risks ineligible for coverage;
   68         amending s. 627.3511, F.S.; conforming provisions to
   69         changes made by the act; conforming cross-references;
   70         amending s. 627.3518, F.S.; providing nonapplicability
   71         of provisions relating to noneligibility for coverage
   72         by the corporation; providing an effective date.
   73          
   74  Be It Enacted by the Legislature of the State of Florida:
   75  
   76         Section 1. Present subsection (7) of section 627.351,
   77  Florida Statutes, is redesignated as subsection (8), a new
   78  subsection (7) is added to that section, paragraph (nn) is added
   79  to subsection (6) of that section, and paragraph (b) of
   80  subsection (2) and paragraphs (a), (b), (c), (e), (n), (o), (p),
   81  (q), (v), (w), (x), (z), (aa), (ii), (ll), and (mm) of
   82  subsection (6) are amended, to read:
   83         627.351 Insurance risk apportionment plans.—
   84         (2) WINDSTORM INSURANCE RISK APPORTIONMENT.—
   85         (b) The department shall require all insurers holding a
   86  certificate of authority to transact property insurance on a
   87  direct basis in this state, other than joint underwriting
   88  associations and other entities formed pursuant to this section,
   89  to provide windstorm coverage to applicants from areas
   90  determined to be eligible pursuant to paragraph (c) who in good
   91  faith are entitled to, but are unable to procure, such coverage
   92  through ordinary means; or it shall adopt a reasonable plan or
   93  plans for the equitable apportionment or sharing among such
   94  insurers of windstorm coverage, which may include formation of
   95  an association for this purpose. As used in this subsection, the
   96  term “property insurance” means insurance on real or personal
   97  property, as defined in s. 624.604, including insurance for
   98  fire, industrial fire, allied lines, farmowners multiperil,
   99  homeowners multiperil, commercial multiperil, and mobile homes,
  100  and including liability coverages on all such insurance, but
  101  excluding inland marine as defined in s. 624.607(3) and
  102  excluding vehicle insurance as defined in s. 624.605(1)(a) other
  103  than insurance on mobile homes used as permanent dwellings. The
  104  department shall adopt rules that provide a formula for the
  105  recovery and repayment of any deferred assessments.
  106         1. For the purpose of this section, properties eligible for
  107  such windstorm coverage are defined as dwellings, buildings, and
  108  other structures, including mobile homes which are used as
  109  dwellings and which are tied down in compliance with mobile home
  110  tie-down requirements prescribed by the Department of Highway
  111  Safety and Motor Vehicles pursuant to s. 320.8325, and the
  112  contents of all such properties. An applicant or policyholder is
  113  eligible for coverage only if an offer of coverage cannot be
  114  obtained by or for the applicant or policyholder from an
  115  admitted insurer at approved rates.
  116         2.a.(I) All insurers required to be members of such
  117  association shall participate in its writings, expenses, and
  118  losses. Surplus of the association shall be retained for the
  119  payment of claims and shall not be distributed to the member
  120  insurers. Such participation by member insurers shall be in the
  121  proportion that the net direct premiums of each member insurer
  122  written for property insurance in this state during the
  123  preceding calendar year bear to the aggregate net direct
  124  premiums for property insurance of all member insurers, as
  125  reduced by any credits for voluntary writings, in this state
  126  during the preceding calendar year. For the purposes of this
  127  subsection, the term “net direct premiums” means direct written
  128  premiums for property insurance, reduced by premium for
  129  liability coverage and for the following if included in allied
  130  lines: rain and hail on growing crops; livestock; association
  131  direct premiums booked; National Flood Insurance Program direct
  132  premiums; and similar deductions specifically authorized by the
  133  plan of operation and approved by the department. A member’s
  134  participation shall begin on the first day of the calendar year
  135  following the year in which it is issued a certificate of
  136  authority to transact property insurance in the state and shall
  137  terminate 1 year after the end of the calendar year during which
  138  it no longer holds a certificate of authority to transact
  139  property insurance in the state. The commissioner, after review
  140  of annual statements, other reports, and any other statistics
  141  that the commissioner deems necessary, shall certify to the
  142  association the aggregate direct premiums written for property
  143  insurance in this state by all member insurers.
  144         (II) Effective July 1, 2002, the association shall operate
  145  subject to the supervision and approval of a board of governors
  146  who are the same individuals that have been appointed by the
  147  Treasurer to serve on the board of governors of the Citizens
  148  Property Insurance Corporation.
  149         (III) The plan of operation shall provide a formula whereby
  150  a company voluntarily providing windstorm coverage in affected
  151  areas will be relieved wholly or partially from apportionment of
  152  a regular assessment pursuant to sub-sub-subparagraph d.(I) or
  153  sub-sub-subparagraph d.(II).
  154         (IV) A company which is a member of a group of companies
  155  under common management may elect to have its credits applied on
  156  a group basis, and any company or group may elect to have its
  157  credits applied to any other company or group.
  158         (V) There shall be no credits or relief from apportionment
  159  to a company for emergency assessments collected from its
  160  policyholders under sub-sub-subparagraph d.(III).
  161         (VI) The plan of operation may also provide for the award
  162  of credits, for a period not to exceed 3 years, from a regular
  163  assessment pursuant to sub-sub-subparagraph d.(I) or sub-sub
  164  subparagraph d.(II) as an incentive for taking policies out of
  165  the Residential Property and Casualty Joint Underwriting
  166  Association. In order to qualify for the exemption under this
  167  sub-sub-subparagraph, the take-out plan must provide that at
  168  least 40 percent of the policies removed from the Residential
  169  Property and Casualty Joint Underwriting Association cover risks
  170  located in Miami-Dade, Broward, and Palm Beach Counties or at
  171  least 30 percent of the policies so removed cover risks located
  172  in Miami-Dade, Broward, and Palm Beach Counties and an
  173  additional 50 percent of the policies so removed cover risks
  174  located in other coastal counties, and must also provide that no
  175  more than 15 percent of the policies so removed may exclude
  176  windstorm coverage. With the approval of the department, the
  177  association may waive these geographic criteria for a take-out
  178  plan that removes at least the lesser of 100,000 Residential
  179  Property and Casualty Joint Underwriting Association policies or
  180  15 percent of the total number of Residential Property and
  181  Casualty Joint Underwriting Association policies, provided the
  182  governing board of the Residential Property and Casualty Joint
  183  Underwriting Association certifies that the take-out plan will
  184  materially reduce the Residential Property and Casualty Joint
  185  Underwriting Association’s 100-year probable maximum loss from
  186  hurricanes. With the approval of the department, the board may
  187  extend such credits for an additional year if the insurer
  188  guarantees an additional year of renewability for all policies
  189  removed from the Residential Property and Casualty Joint
  190  Underwriting Association, or for 2 additional years if the
  191  insurer guarantees 2 additional years of renewability for all
  192  policies removed from the Residential Property and Casualty
  193  Joint Underwriting Association.
  194         b. Assessments to pay deficits in the association under
  195  this subparagraph shall be included as an appropriate factor in
  196  the making of rates as provided in s. 627.3512.
  197         c. The Legislature finds that the potential for unlimited
  198  deficit assessments under this subparagraph may induce insurers
  199  to attempt to reduce their writings in the voluntary market, and
  200  that such actions would worsen the availability problems that
  201  the association was created to remedy. It is the intent of the
  202  Legislature that insurers remain fully responsible for paying
  203  regular assessments and collecting emergency assessments for any
  204  deficits of the association; however, it is also the intent of
  205  the Legislature to provide a means by which assessment
  206  liabilities may be amortized over a period of years.
  207         d.(I) When the deficit incurred in a particular calendar
  208  year is 10 percent or less of the aggregate statewide direct
  209  written premium for property insurance for the prior calendar
  210  year for all member insurers, the association shall levy an
  211  assessment on member insurers in an amount equal to the deficit.
  212         (II) When the deficit incurred in a particular calendar
  213  year exceeds 10 percent of the aggregate statewide direct
  214  written premium for property insurance for the prior calendar
  215  year for all member insurers, the association shall levy an
  216  assessment on member insurers in an amount equal to the greater
  217  of 10 percent of the deficit or 10 percent of the aggregate
  218  statewide direct written premium for property insurance for the
  219  prior calendar year for member insurers. Any remaining deficit
  220  shall be recovered through emergency assessments under sub-sub
  221  subparagraph (III).
  222         (III) Upon a determination by the board of directors that a
  223  deficit exceeds the amount that will be recovered through
  224  regular assessments on member insurers, pursuant to sub-sub
  225  subparagraph (I) or sub-sub-subparagraph (II), the board shall
  226  levy, after verification by the department, emergency
  227  assessments to be collected by member insurers and by
  228  underwriting associations created pursuant to this section which
  229  write property insurance, upon issuance or renewal of property
  230  insurance policies other than National Flood Insurance policies
  231  in the year or years following levy of the regular assessments.
  232  The amount of the emergency assessment collected in a particular
  233  year shall be a uniform percentage of that year’s direct written
  234  premium for property insurance for all member insurers and
  235  underwriting associations, excluding National Flood Insurance
  236  policy premiums, as annually determined by the board and
  237  verified by the department. The department shall verify the
  238  arithmetic calculations involved in the board’s determination
  239  within 30 days after receipt of the information on which the
  240  determination was based. Notwithstanding any other provision of
  241  law, each member insurer and each underwriting association
  242  created pursuant to this section shall collect emergency
  243  assessments from its policyholders without such obligation being
  244  affected by any credit, limitation, exemption, or deferment. The
  245  emergency assessments so collected shall be transferred directly
  246  to the association on a periodic basis as determined by the
  247  association. The aggregate amount of emergency assessments
  248  levied under this sub-sub-subparagraph in any calendar year may
  249  not exceed the greater of 10 percent of the amount needed to
  250  cover the original deficit, plus interest, fees, commissions,
  251  required reserves, and other costs associated with financing of
  252  the original deficit, or 10 percent of the aggregate statewide
  253  direct written premium for property insurance written by member
  254  insurers and underwriting associations for the prior year, plus
  255  interest, fees, commissions, required reserves, and other costs
  256  associated with financing the original deficit. The board may
  257  pledge the proceeds of the emergency assessments under this sub
  258  sub-subparagraph as the source of revenue for bonds, to retire
  259  any other debt incurred as a result of the deficit or events
  260  giving rise to the deficit, or in any other way that the board
  261  determines will efficiently recover the deficit. The emergency
  262  assessments under this sub-sub-subparagraph shall continue as
  263  long as any bonds issued or other indebtedness incurred with
  264  respect to a deficit for which the assessment was imposed remain
  265  outstanding, unless adequate provision has been made for the
  266  payment of such bonds or other indebtedness pursuant to the
  267  document governing such bonds or other indebtedness. Emergency
  268  assessments collected under this sub-sub-subparagraph are not
  269  part of an insurer’s rates, are not premium, and are not subject
  270  to premium tax, fees, or commissions; however, failure to pay
  271  the emergency assessment shall be treated as failure to pay
  272  premium.
  273         (IV) Each member insurer’s share of the total regular
  274  assessments under sub-sub-subparagraph (I) or sub-sub
  275  subparagraph (II) shall be in the proportion that the insurer’s
  276  net direct premium for property insurance in this state, for the
  277  year preceding the assessment bears to the aggregate statewide
  278  net direct premium for property insurance of all member
  279  insurers, as reduced by any credits for voluntary writings for
  280  that year.
  281         (V) If regular deficit assessments are made under sub-sub
  282  subparagraph (I) or sub-sub-subparagraph (II), or by the
  283  Residential Property and Casualty Joint Underwriting Association
  284  under sub-subparagraph (6)(b)3.a., the association shall levy
  285  upon the association’s policyholders, as part of its next rate
  286  filing, or by a separate rate filing solely for this purpose, a
  287  market equalization surcharge in a percentage equal to the total
  288  amount of such regular assessments divided by the aggregate
  289  statewide direct written premium for property insurance for
  290  member insurers for the prior calendar year. Market equalization
  291  surcharges under this sub-sub-subparagraph are not considered
  292  premium and are not subject to commissions, fees, or premium
  293  taxes; however, failure to pay a market equalization surcharge
  294  shall be treated as failure to pay premium.
  295         e. The governing body of any unit of local government, any
  296  residents of which are insured under the plan, may issue bonds
  297  as defined in s. 125.013 or s. 166.101 to fund an assistance
  298  program, in conjunction with the association, for the purpose of
  299  defraying deficits of the association. In order to avoid
  300  needless and indiscriminate proliferation, duplication, and
  301  fragmentation of such assistance programs, any unit of local
  302  government, any residents of which are insured by the
  303  association, may provide for the payment of losses, regardless
  304  of whether or not the losses occurred within or outside of the
  305  territorial jurisdiction of the local government. Revenue bonds
  306  may not be issued until validated pursuant to chapter 75, unless
  307  a state of emergency is declared by executive order or
  308  proclamation of the Governor pursuant to s. 252.36 making such
  309  findings as are necessary to determine that it is in the best
  310  interests of, and necessary for, the protection of the public
  311  health, safety, and general welfare of residents of this state
  312  and the protection and preservation of the economic stability of
  313  insurers operating in this state, and declaring it an essential
  314  public purpose to permit certain municipalities or counties to
  315  issue bonds as will provide relief to claimants and
  316  policyholders of the association and insurers responsible for
  317  apportionment of plan losses. Any such unit of local government
  318  may enter into such contracts with the association and with any
  319  other entity created pursuant to this subsection as are
  320  necessary to carry out this paragraph. Any bonds issued under
  321  this sub-subparagraph shall be payable from and secured by
  322  moneys received by the association from assessments under this
  323  subparagraph, and assigned and pledged to or on behalf of the
  324  unit of local government for the benefit of the holders of such
  325  bonds. The funds, credit, property, and taxing power of the
  326  state or of the unit of local government shall not be pledged
  327  for the payment of such bonds. If any of the bonds remain unsold
  328  60 days after issuance, the department shall require all
  329  insurers subject to assessment to purchase the bonds, which
  330  shall be treated as admitted assets; each insurer shall be
  331  required to purchase that percentage of the unsold portion of
  332  the bond issue that equals the insurer’s relative share of
  333  assessment liability under this subsection. An insurer shall not
  334  be required to purchase the bonds to the extent that the
  335  department determines that the purchase would endanger or impair
  336  the solvency of the insurer. The authority granted by this sub
  337  subparagraph is additional to any bonding authority granted by
  338  subparagraph 6.
  339         3. The plan shall also provide that any member with a
  340  surplus as to policyholders of $25 million or less writing 25
  341  percent or more of its total countrywide property insurance
  342  premiums in this state may petition the department, within the
  343  first 90 days of each calendar year, to qualify as a limited
  344  apportionment company. The apportionment of such a member
  345  company in any calendar year for which it is qualified shall not
  346  exceed its gross participation, which shall not be affected by
  347  the formula for voluntary writings. In no event shall a limited
  348  apportionment company be required to participate in any
  349  apportionment of losses pursuant to sub-sub-subparagraph 2.d.(I)
  350  or sub-sub-subparagraph 2.d.(II) in the aggregate which exceeds
  351  $50 million after payment of available plan funds in any
  352  calendar year. However, a limited apportionment company shall
  353  collect from its policyholders any emergency assessment imposed
  354  under sub-sub-subparagraph 2.d.(III). The plan shall provide
  355  that, if the department determines that any regular assessment
  356  will result in an impairment of the surplus of a limited
  357  apportionment company, the department may direct that all or
  358  part of such assessment be deferred. However, there shall be no
  359  limitation or deferment of an emergency assessment to be
  360  collected from policyholders under sub-sub-subparagraph
  361  2.d.(III).
  362         4. The plan shall provide for the deferment, in whole or in
  363  part, of a regular assessment of a member insurer under sub-sub
  364  subparagraph 2.d.(I) or sub-sub-subparagraph 2.d.(II), but not
  365  for an emergency assessment collected from policyholders under
  366  sub-sub-subparagraph 2.d.(III), if, in the opinion of the
  367  commissioner, payment of such regular assessment would endanger
  368  or impair the solvency of the member insurer. In the event a
  369  regular assessment against a member insurer is deferred in whole
  370  or in part, the amount by which such assessment is deferred may
  371  be assessed against the other member insurers in a manner
  372  consistent with the basis for assessments set forth in sub-sub
  373  subparagraph 2.d.(I) or sub-sub-subparagraph 2.d.(II).
  374         5.a. The plan of operation may include deductibles and
  375  rules for classification of risks and rate modifications
  376  consistent with the objective of providing and maintaining funds
  377  sufficient to pay catastrophe losses.
  378         b. It is the intent of the Legislature that the rates for
  379  coverage provided by the association be actuarially sound and
  380  not competitive with approved rates charged in the admitted
  381  voluntary market such that the association functions as a
  382  residual market mechanism to provide insurance only when the
  383  insurance cannot be procured in the voluntary market. The plan
  384  of operation shall provide a mechanism to assure that, beginning
  385  no later than January 1, 1999, the rates charged by the
  386  association for each line of business are reflective of approved
  387  rates in the voluntary market for hurricane coverage for each
  388  line of business in the various areas eligible for association
  389  coverage.
  390         c. The association shall provide for windstorm coverage on
  391  residential properties in limits up to $10 million for
  392  commercial lines residential risks and up to $1 million for
  393  personal lines residential risks. If coverage with the
  394  association is sought for a residential risk valued in excess of
  395  these limits, coverage shall be available to the risk up to the
  396  replacement cost or actual cash value of the property, at the
  397  option of the insured, if coverage for the risk cannot be
  398  located in the authorized market. The association must accept a
  399  commercial lines residential risk with limits above $10 million
  400  or a personal lines residential risk with limits above $1
  401  million if coverage is not available in the authorized market.
  402  The association may write coverage above the limits specified in
  403  this subparagraph with or without facultative or other
  404  reinsurance coverage, as the association determines appropriate.
  405         d. The plan of operation must provide objective criteria
  406  and procedures, approved by the department, to be uniformly
  407  applied for all applicants in determining whether an individual
  408  risk is so hazardous as to be uninsurable. In making this
  409  determination and in establishing the criteria and procedures,
  410  the following shall be considered:
  411         (I) Whether the likelihood of a loss for the individual
  412  risk is substantially higher than for other risks of the same
  413  class; and
  414         (II) Whether the uncertainty associated with the individual
  415  risk is such that an appropriate premium cannot be determined.
  416  
  417  The acceptance or rejection of a risk by the association
  418  pursuant to such criteria and procedures must be construed as
  419  the private placement of insurance, and the provisions of
  420  chapter 120 do not apply.
  421         e. If the risk accepts an offer of coverage through the
  422  market assistance program or through a mechanism established by
  423  the association, either before the policy is issued by the
  424  association or during the first 30 days of coverage by the
  425  association, and the producing agent who submitted the
  426  application to the association is not currently appointed by the
  427  insurer, the insurer shall:
  428         (I) Pay to the producing agent of record of the policy, for
  429  the first year, an amount that is the greater of the insurer’s
  430  usual and customary commission for the type of policy written or
  431  a fee equal to the usual and customary commission of the
  432  association; or
  433         (II) Offer to allow the producing agent of record of the
  434  policy to continue servicing the policy for a period of not less
  435  than 1 year and offer to pay the agent the greater of the
  436  insurer’s or the association’s usual and customary commission
  437  for the type of policy written.
  438  
  439  If the producing agent is unwilling or unable to accept
  440  appointment, the new insurer shall pay the agent in accordance
  441  with sub-sub-subparagraph (I). Subject to the provisions of s.
  442  627.3517, the policies issued by the association must provide
  443  that if the association obtains an offer from an authorized
  444  insurer to cover the risk at its approved rates under either a
  445  standard policy including wind coverage or, if consistent with
  446  the insurer’s underwriting rules as filed with the department, a
  447  basic policy including wind coverage, the risk is no longer
  448  eligible for coverage through the association. Upon termination
  449  of eligibility, the association shall provide written notice to
  450  the policyholder and agent of record stating that the
  451  association policy must be canceled as of 60 days after the date
  452  of the notice because of the offer of coverage from an
  453  authorized insurer. Other provisions of the insurance code
  454  relating to cancellation and notice of cancellation do not apply
  455  to actions under this sub-subparagraph.
  456         f. When the association enters into a contractual agreement
  457  for a take-out plan, the producing agent of record of the
  458  association policy is entitled to retain any unearned commission
  459  on the policy, and the insurer shall:
  460         (I) Pay to the producing agent of record of the association
  461  policy, for the first year, an amount that is the greater of the
  462  insurer’s usual and customary commission for the type of policy
  463  written or a fee equal to the usual and customary commission of
  464  the association; or
  465         (II) Offer to allow the producing agent of record of the
  466  association policy to continue servicing the policy for a period
  467  of not less than 1 year and offer to pay the agent the greater
  468  of the insurer’s or the association’s usual and customary
  469  commission for the type of policy written.
  470  
  471  If the producing agent is unwilling or unable to accept
  472  appointment, the new insurer shall pay the agent in accordance
  473  with sub-sub-subparagraph (I).
  474         6.a. The plan of operation may authorize the formation of a
  475  private nonprofit corporation, a private nonprofit
  476  unincorporated association, a partnership, a trust, a limited
  477  liability company, or a nonprofit mutual company which may be
  478  empowered, among other things, to borrow money by issuing bonds
  479  or by incurring other indebtedness and to accumulate reserves or
  480  funds to be used for the payment of insured catastrophe losses.
  481  The plan may authorize all actions necessary to facilitate the
  482  issuance of bonds, including the pledging of assessments or
  483  other revenues.
  484         b. Any entity created under this subsection, or any entity
  485  formed for the purposes of this subsection, may sue and be sued,
  486  may borrow money; issue bonds, notes, or debt instruments;
  487  pledge or sell assessments, market equalization surcharges and
  488  other surcharges, rights, premiums, contractual rights,
  489  projected recoveries from the Florida Hurricane Catastrophe
  490  Fund, other reinsurance recoverables, and other assets as
  491  security for such bonds, notes, or debt instruments; enter into
  492  any contracts or agreements necessary or proper to accomplish
  493  such borrowings; and take other actions necessary to carry out
  494  the purposes of this subsection. The association may issue bonds
  495  or incur other indebtedness, or have bonds issued on its behalf
  496  by a unit of local government pursuant to subparagraph (6)(q)2.,
  497  in the absence of a hurricane or other weather-related event,
  498  upon a determination by the association subject to approval by
  499  the department that such action would enable it to efficiently
  500  meet the financial obligations of the association and that such
  501  financings are reasonably necessary to effectuate the
  502  requirements of this subsection. Any such entity may accumulate
  503  reserves and retain surpluses as of the end of any association
  504  year to provide for the payment of losses incurred by the
  505  association during that year or any future year. The association
  506  shall incorporate and continue the plan of operation and
  507  articles of agreement in effect on the effective date of chapter
  508  76-96, Laws of Florida, to the extent that it is not
  509  inconsistent with chapter 76-96, and as subsequently modified
  510  consistent with chapter 76-96. The board of directors and
  511  officers currently serving shall continue to serve until their
  512  successors are duly qualified as provided under the plan. The
  513  assets and obligations of the plan in effect immediately prior
  514  to the effective date of chapter 76-96 shall be construed to be
  515  the assets and obligations of the successor plan created herein.
  516         c. In recognition of s. 10, Art. I of the State
  517  Constitution, prohibiting the impairment of obligations of
  518  contracts, it is the intent of the Legislature that no action be
  519  taken whose purpose is to impair any bond indenture or financing
  520  agreement or any revenue source committed by contract to such
  521  bond or other indebtedness issued or incurred by the association
  522  or any other entity created under this subsection.
  523         7. On such coverage, an agent’s remuneration shall be that
  524  amount of money payable to the agent by the terms of his or her
  525  contract with the company with which the business is placed.
  526  However, no commission will be paid on that portion of the
  527  premium which is in excess of the standard premium of that
  528  company.
  529         8. Subject to approval by the department, the association
  530  may establish different eligibility requirements and operational
  531  procedures for any line or type of coverage for any specified
  532  eligible area or portion of an eligible area if the board
  533  determines that such changes to the eligibility requirements and
  534  operational procedures are justified due to the voluntary market
  535  being sufficiently stable and competitive in such area or for
  536  such line or type of coverage and that consumers who, in good
  537  faith, are unable to obtain insurance through the voluntary
  538  market through ordinary methods would continue to have access to
  539  coverage from the association. When coverage is sought in
  540  connection with a real property transfer, such requirements and
  541  procedures shall not provide for an effective date of coverage
  542  later than the date of the closing of the transfer as
  543  established by the transferor, the transferee, and, if
  544  applicable, the lender.
  545         9. Notwithstanding any other provision of law:
  546         a. The pledge or sale of, the lien upon, and the security
  547  interest in any rights, revenues, or other assets of the
  548  association created or purported to be created pursuant to any
  549  financing documents to secure any bonds or other indebtedness of
  550  the association shall be and remain valid and enforceable,
  551  notwithstanding the commencement of and during the continuation
  552  of, and after, any rehabilitation, insolvency, liquidation,
  553  bankruptcy, receivership, conservatorship, reorganization, or
  554  similar proceeding against the association under the laws of
  555  this state or any other applicable laws.
  556         b. No such proceeding shall relieve the association of its
  557  obligation, or otherwise affect its ability to perform its
  558  obligation, to continue to collect, or levy and collect,
  559  assessments, market equalization or other surcharges, projected
  560  recoveries from the Florida Hurricane Catastrophe Fund,
  561  reinsurance recoverables, or any other rights, revenues, or
  562  other assets of the association pledged.
  563         c. Each such pledge or sale of, lien upon, and security
  564  interest in, including the priority of such pledge, lien, or
  565  security interest, any such assessments, emergency assessments,
  566  market equalization or renewal surcharges, projected recoveries
  567  from the Florida Hurricane Catastrophe Fund, reinsurance
  568  recoverables, or other rights, revenues, or other assets which
  569  are collected, or levied and collected, after the commencement
  570  of and during the pendency of or after any such proceeding shall
  571  continue unaffected by such proceeding.
  572         d. As used in this subsection, the term “financing
  573  documents” means any agreement, instrument, or other document
  574  now existing or hereafter created evidencing any bonds or other
  575  indebtedness of the association or pursuant to which any such
  576  bonds or other indebtedness has been or may be issued and
  577  pursuant to which any rights, revenues, or other assets of the
  578  association are pledged or sold to secure the repayment of such
  579  bonds or indebtedness, together with the payment of interest on
  580  such bonds or such indebtedness, or the payment of any other
  581  obligation of the association related to such bonds or
  582  indebtedness.
  583         e. Any such pledge or sale of assessments, revenues,
  584  contract rights or other rights or assets of the association
  585  shall constitute a lien and security interest, or sale, as the
  586  case may be, that is immediately effective and attaches to such
  587  assessments, revenues, contract, or other rights or assets,
  588  whether or not imposed or collected at the time the pledge or
  589  sale is made. Any such pledge or sale is effective, valid,
  590  binding, and enforceable against the association or other entity
  591  making such pledge or sale, and valid and binding against and
  592  superior to any competing claims or obligations owed to any
  593  other person or entity, including policyholders in this state,
  594  asserting rights in any such assessments, revenues, contract, or
  595  other rights or assets to the extent set forth in and in
  596  accordance with the terms of the pledge or sale contained in the
  597  applicable financing documents, whether or not any such person
  598  or entity has notice of such pledge or sale and without the need
  599  for any physical delivery, recordation, filing, or other action.
  600         f. There shall be no liability on the part of, and no cause
  601  of action of any nature shall arise against, any member insurer
  602  or its agents or employees, agents or employees of the
  603  association, members of the board of directors of the
  604  association, or the department or its representatives, for any
  605  action taken by them in the performance of their duties or
  606  responsibilities under this subsection. Such immunity does not
  607  apply to actions for breach of any contract or agreement
  608  pertaining to insurance, or any willful tort.
  609         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
  610         (a) The public purpose of this subsection is to ensure that
  611  there is an orderly market for property insurance for residents
  612  and businesses of this state.
  613         1. The Legislature finds that private insurers are
  614  unwilling or unable to provide affordable property insurance
  615  coverage in this state to the extent sought and needed. The
  616  absence of affordable property insurance threatens the public
  617  health, safety, and welfare and likewise threatens the economic
  618  health of the state. The state therefore has a compelling public
  619  interest and a public purpose to assist in assuring that
  620  property in the state is insured and that it is insured at
  621  affordable rates so as to facilitate the remediation,
  622  reconstruction, and replacement of damaged or destroyed property
  623  in order to reduce or avoid the negative effects otherwise
  624  resulting to the public health, safety, and welfare, to the
  625  economy of the state, and to the revenues of the state and local
  626  governments which are needed to provide for the public welfare.
  627  It is necessary, therefore, to provide affordable property
  628  insurance to applicants who are in good faith entitled to
  629  procure insurance through the voluntary market but are unable to
  630  do so. The Legislature intends, therefore, that affordable
  631  property insurance be provided and that it continue to be
  632  provided, as long as necessary, through Citizens Property
  633  Insurance Corporation, a government entity that is an integral
  634  part of the state, and that is not a private insurance company.
  635  To that end, the corporation shall strive to increase the
  636  availability of affordable property insurance in this state,
  637  while achieving efficiencies and economies, and while providing
  638  service to policyholders, applicants, and agents which is no
  639  less than the quality generally provided in the voluntary
  640  market, for the achievement of the foregoing public purposes.
  641  Because it is essential for this government entity to have the
  642  maximum financial resources to pay claims following a
  643  catastrophic hurricane, it is the intent of the Legislature that
  644  the corporation continue to be an integral part of the state and
  645  that the income of the corporation be exempt from federal income
  646  taxation and that interest on the debt obligations issued by the
  647  corporation be exempt from federal income taxation.
  648         2. The Residential Property and Casualty Joint Underwriting
  649  Association originally created by this statute shall be known as
  650  the Citizens Property Insurance Corporation. The corporation
  651  shall provide insurance for residential and commercial property,
  652  for applicants who are entitled, but, in good faith, are unable
  653  to procure insurance through the voluntary market. The
  654  corporation shall operate pursuant to a plan of operation
  655  approved by order of the Financial Services Commission. The plan
  656  is subject to continuous review by the commission. The
  657  commission may, by order, withdraw approval of all or part of a
  658  plan if the commission determines that conditions have changed
  659  since approval was granted and that the purposes of the plan
  660  require changes in the plan. For the purposes of this
  661  subsection, residential coverage includes both personal lines
  662  residential coverage, which consists of the type of coverage
  663  provided by homeowner, mobile home owner, dwelling, tenant,
  664  condominium unit owner, and similar policies; and commercial
  665  lines residential coverage, which consists of the type of
  666  coverage provided by condominium association, apartment
  667  building, and similar policies.
  668         3. With respect to coverage for personal lines residential
  669  structures:
  670         a. Effective January 1, 2014, a structure that has a
  671  dwelling replacement cost of $1 million or more, or a single
  672  condominium unit that has a combined dwelling and contents
  673  replacement cost of $1 million or more, is not eligible for
  674  coverage by the corporation. Such dwellings insured by the
  675  corporation on December 31, 2013, may continue to be covered by
  676  the corporation until the end of the policy term. The office
  677  shall approve the method used by the corporation for valuing the
  678  dwelling replacement cost for the purposes of this subparagraph.
  679  If a policyholder is insured by the corporation before being
  680  determined to be ineligible pursuant to this subparagraph and
  681  such policyholder files a lawsuit challenging the determination,
  682  the policyholder may remain insured by the corporation until the
  683  conclusion of the litigation.
  684         b. Effective January 1, 2015, a structure that has a
  685  dwelling replacement cost of $900,000 or more, or a single
  686  condominium unit that has a combined dwelling and contents
  687  replacement cost of $900,000 or more, is not eligible for
  688  coverage by the corporation. Such dwellings insured by the
  689  corporation on December 31, 2014, may continue to be covered by
  690  the corporation only until the end of the policy term.
  691         c. Effective January 1, 2016, a structure that has a
  692  dwelling replacement cost of $800,000 or more, or a single
  693  condominium unit that has a combined dwelling and contents
  694  replacement cost of $800,000 or more, is not eligible for
  695  coverage by the corporation. Such dwellings insured by the
  696  corporation on December 31, 2015, may continue to be covered by
  697  the corporation until the end of the policy term.
  698         d. Effective January 1, 2017, a structure that has a
  699  dwelling replacement cost of $700,000 or more, or a single
  700  condominium unit that has a combined dwelling and contents
  701  replacement cost of $700,000 or more, is not eligible for
  702  coverage by the corporation. Such dwellings insured by the
  703  corporation on December 31, 2016, may continue to be covered by
  704  the corporation until the end of the policy term.
  705         b. The requirements of sub-subparagraph a. sub
  706  subparagraphs b.-d. do not apply in counties where the office
  707  determines there is not a reasonable degree of competition. In
  708  such counties a personal lines residential structure that has a
  709  dwelling replacement cost of less than $1 million, or a single
  710  condominium unit that has a combined dwelling and contents
  711  replacement cost of less than $1 million, is eligible for
  712  coverage by the corporation.
  713         4. It is the intent of the Legislature that policyholders,
  714  applicants, and agents of the corporation receive service and
  715  treatment of the highest possible level but never less than that
  716  generally provided in the voluntary market. It is also intended
  717  that the corporation be held to service standards no less than
  718  those applied to insurers in the voluntary market by the office
  719  with respect to responsiveness, timeliness, customer courtesy,
  720  and overall dealings with policyholders, applicants, or agents
  721  of the corporation.
  722         5.a. Effective January 1, 2009, a personal lines
  723  residential structure that is located in the “wind-borne debris
  724  region,” as defined in s. 1609.2, International Building Code
  725  (2006), and that has an insured value on the structure of
  726  $750,000 or more is not eligible for coverage by the corporation
  727  unless the structure has opening protections as required under
  728  the Florida Building Code for a newly constructed residential
  729  structure in that area. A residential structure is deemed to
  730  comply with this sub-subparagraph if it has shutters or opening
  731  protections on all openings and if such opening protections
  732  complied with the Florida Building Code at the time they were
  733  installed.
  734         b. Any major structure, as defined in s. 161.54(6)(a), that
  735  is newly constructed, or rebuilt, repaired, restored, or
  736  remodeled to increase the total square footage of finished area
  737  by more than 25 percent, pursuant to a permit applied for after
  738  July 1, 2015, is not eligible for coverage by the corporation if
  739  the structure is seaward of the coastal construction control
  740  line established pursuant to s. 161.053 or is within the Coastal
  741  Barrier Resources System as designated by 16 U.S.C. ss. 3501
  742  3510.
  743         6. With respect to wind-only coverage for commercial lines
  744  residential condominiums, effective July 1, 2014, a condominium
  745  shall be deemed ineligible for coverage if 50 percent or more of
  746  the units are rented more than eight times in a calendar year
  747  for a rental agreement period of less than 30 days.
  748         (b)1. All insurers authorized to write one or more subject
  749  lines of business in this state are subject to assessment by the
  750  corporation and, for the purposes of this subsection, are
  751  referred to collectively as “assessable insurers.” Insurers
  752  writing one or more subject lines of business in this state
  753  pursuant to part VIII of chapter 626 are not assessable
  754  insurers; however, insureds who procure one or more subject
  755  lines of business in this state pursuant to part VIII of chapter
  756  626 are subject to assessment by the corporation and are
  757  referred to collectively as “assessable insureds.” An insurer’s
  758  assessment liability begins on the first day of the calendar
  759  year following the year in which the insurer was issued a
  760  certificate of authority to transact insurance for subject lines
  761  of business in this state and terminates 1 year after the end of
  762  the first calendar year during which the insurer no longer holds
  763  a certificate of authority to transact insurance for subject
  764  lines of business in this state.
  765         2.a. All revenues, assets, liabilities, losses, and
  766  expenses of the corporation shall be maintained in the Citizens
  767  account. The Citizens account may provide divided into three
  768  separate accounts as follows:
  769         a.(I)A personal lines account for Personal residential
  770  policies that provide issued by the corporation which provides
  771  comprehensive, multiperil coverage on risks that are not located
  772  in areas eligible for coverage by the Florida Windstorm
  773  Underwriting Association as those areas were defined on January
  774  1, 2002, and for policies that do not provide coverage for the
  775  peril of wind on risks that are located in such areas;
  776         b.(II)A commercial lines account for Commercial
  777  residential and commercial nonresidential policies that provide
  778  issued by the corporation which provides coverage for basic
  779  property perils on risks that are not located in areas eligible
  780  for coverage by the Florida Windstorm Underwriting Association
  781  as those areas were defined on January 1, 2002, and for policies
  782  that do not provide coverage for the peril of wind on risks that
  783  are located in such areas; and
  784         c.(III) A coastal account for Personal residential policies
  785  and commercial residential and commercial nonresidential
  786  property policies issued by the corporation which provides
  787  coverage for the peril of wind on risks that are located in
  788  areas eligible for coverage by the Florida Windstorm
  789  Underwriting Association as those areas were defined on January
  790  1, 2002. The corporation may offer policies that provide
  791  multiperil coverage and shall offer policies that provide
  792  coverage only for the peril of wind for risks located in areas
  793  eligible for coverage by the Florida Windstorm Underwriting
  794  Association, as those areas were defined on January 1, 2002 in
  795  the coastal account. Effective July 1, 2014, The corporation may
  796  not offer shall cease offering new commercial residential
  797  policies providing multiperil coverage but and shall instead
  798  continue to offer commercial residential wind-only policies, and
  799  may offer commercial residential policies excluding wind.
  800  However, the corporation may, however, continue to renew a
  801  commercial residential multiperil policy on a building that was
  802  is insured by the corporation on June 30, 2014, under a
  803  multiperil policy. In issuing multiperil coverage under this
  804  sub-subparagraph, the corporation may use its approved policy
  805  forms and rates for risks located in areas not eligible for
  806  coverage by the Florida Windstorm Underwriting Association, as
  807  those areas were defined on January 1, 2002, and for policies
  808  that do not provide coverage for the peril of wind on risks that
  809  are located in such areas the personal lines account. An
  810  applicant or insured who is eligible to purchase a multiperil
  811  policy from the corporation may purchase a multiperil policy
  812  from an authorized insurer without prejudice to the applicant’s
  813  or insured’s eligibility to prospectively purchase a policy that
  814  provides coverage only for the peril of wind from the
  815  corporation. An applicant or insured who is eligible for a
  816  corporation policy that provides coverage only for the peril of
  817  wind may elect to purchase or retain such policy and also
  818  purchase or retain coverage excluding wind from an authorized
  819  insurer without prejudice to the applicant’s or insured’s
  820  eligibility to prospectively purchase a policy that provides
  821  multiperil coverage from the corporation. The following
  822  policies, which provide coverage only for the peril of wind,
  823  must also include quota share primary insurance under
  824  subparagraph (c)2.:
  825         (I)Personal residential policies and commercial
  826  residential and commercial nonresidential property policies that
  827  provide coverage for the peril of wind on risks that are located
  828  in areas eligible for coverage by the Florida Windstorm
  829  Underwriting Association, as those areas were defined on January
  830  1, 2002;
  831         (II)Policies that provide multiperil coverage, if offered
  832  by the corporation, and policies that provide coverage only for
  833  the peril of wind for risks located in areas eligible for
  834  coverage by the Florida Windstorm Underwriting Association, as
  835  those areas were defined on January 1, 2002;
  836         (III)Commercial residential wind-only policies;
  837         (IV)Commercial residential policies excluding wind, if
  838  offered by the corporation; and
  839         (V)Commercial residential multiperil policies on a
  840  building that was insured by the corporation on June 30, 2014 It
  841  is the goal of the Legislature that there be an overall average
  842  savings of 10 percent or more for a policyholder who currently
  843  has a wind-only policy with the corporation, and an ex-wind
  844  policy with a voluntary insurer or the corporation, and who
  845  obtains a multiperil policy from the corporation. It is the
  846  intent of the Legislature that the offer of multiperil coverage
  847  in the coastal account be made and implemented in a manner that
  848  does not adversely affect the tax-exempt status of the
  849  corporation or creditworthiness of or security for currently
  850  outstanding financing obligations or credit facilities of the
  851  coastal account, the personal lines account, or the commercial
  852  lines account. The coastal account must also include quota share
  853  primary insurance under subparagraph (c)2.
  854  
  855  The area eligible for coverage with the corporation under this
  856  sub-subparagraph under the coastal account also includes the
  857  area within Port Canaveral, which is bordered on the south by
  858  the City of Cape Canaveral, bordered on the west by the Banana
  859  River, and bordered on the north by Federal Government property.
  860         3.With respect to a deficit in the Citizens account:
  861         a.Upon a determination by the board of governors that the
  862  Citizens account has a projected deficit, the board shall levy a
  863  Citizens policyholder surcharge against all policyholders of the
  864  corporation.
  865         (I)The surcharge shall be levied as a uniform percentage
  866  of the premium for the policy of up to 15 percent of such
  867  premium, which funds shall be used to offset the deficit.
  868         (II)The surcharge is payable upon cancellation or
  869  termination of the policy, upon renewal of the policy, or upon
  870  issuance of a new policy by the corporation within the first 12
  871  months after the date of the levy or the period of time
  872  necessary to fully collect the surcharge amount.
  873         (III)The surcharge is not considered premium and is not
  874  subject to commissions, fees, or premium taxes. However, failure
  875  to pay the surcharge shall be treated as failure to pay premium.
  876         b. The three separate accounts must be maintained as long
  877  as financing obligations entered into by the Florida Windstorm
  878  Underwriting Association or Residential Property and Casualty
  879  Joint Underwriting Association are outstanding, in accordance
  880  with the terms of the corresponding financing documents. If no
  881  such financing obligations remain outstanding or if the
  882  financing documents allow for combining of accounts, the
  883  corporation may consolidate the three separate accounts into a
  884  new account, to be known as the Citizens account, for all
  885  revenues, assets, liabilities, losses, and expenses of the
  886  corporation. The Citizens account, if established by the
  887  corporation, is authorized to provide coverage to the same
  888  extent as provided under each of the three separate accounts.
  889  The authority to provide coverage under the Citizens account is
  890  set forth in subparagraph 4. Consistent with this subparagraph
  891  and prudent investment policies that minimize the cost of
  892  carrying debt, the board shall exercise its best efforts to
  893  retire existing debt or obtain the approval of necessary parties
  894  to amend the terms of existing debt, so as to structure the most
  895  efficient plan for consolidating the three separate accounts
  896  into a single account. Once the accounts are combined into one
  897  account, this subparagraph and subparagraph 3. shall be replaced
  898  in their entirety by subparagraphs 4. and 5.
  899         c. Creditors of the Residential Property and Casualty Joint
  900  Underwriting Association and the accounts specified in sub-sub
  901  subparagraphs a.(I) and (II) may have a claim against, and
  902  recourse to, those accounts and no claim against, or recourse
  903  to, the account referred to in sub-sub-subparagraph a.(III).
  904  Creditors of the Florida Windstorm Underwriting Association have
  905  a claim against, and recourse to, the account referred to in
  906  sub-sub-subparagraph a.(III) and no claim against, or recourse
  907  to, the accounts referred to in sub-sub-subparagraphs a.(I) and
  908  (II).
  909         d. Revenues, assets, liabilities, losses, and expenses not
  910  attributable to particular accounts shall be prorated among the
  911  accounts.
  912         e. The Legislature finds that the revenues of the
  913  corporation are revenues that are necessary to meet the
  914  requirements set forth in documents authorizing the issuance of
  915  bonds under this subsection.
  916         f. The income of the corporation may not inure to the
  917  benefit of any private person.
  918         3. With respect to a deficit in an account:
  919         a. After accounting for the Citizens policyholder surcharge
  920  imposed under sub-subparagraph j., if the remaining projected
  921  deficit incurred in the coastal account in a particular calendar
  922  year:
  923         (I) Is not greater than 2 percent of the aggregate
  924  statewide direct written premium for the subject lines of
  925  business for the prior calendar year, the entire deficit shall
  926  be recovered through regular assessments of assessable insurers
  927  under paragraph (q) and assessable insureds.
  928         (II) Exceeds 2 percent of the aggregate statewide direct
  929  written premium for the subject lines of business for the prior
  930  calendar year, the corporation shall levy regular assessments on
  931  assessable insurers under paragraph (q) and on assessable
  932  insureds in an amount equal to the greater of 2 percent of the
  933  projected deficit or 2 percent of the aggregate statewide direct
  934  written premium for the subject lines of business for the prior
  935  calendar year. Any remaining projected deficit shall be
  936  recovered through emergency assessments under sub-subparagraph
  937  e.
  938         b. Each assessable insurer’s share of the amount being
  939  assessed under sub-subparagraph a. must be in the proportion
  940  that the assessable insurer’s direct written premium for the
  941  subject lines of business for the year preceding the assessment
  942  bears to the aggregate statewide direct written premium for the
  943  subject lines of business for that year. The assessment
  944  percentage applicable to each assessable insured is the ratio of
  945  the amount being assessed under sub-subparagraph a. to the
  946  aggregate statewide direct written premium for the subject lines
  947  of business for the prior year. Assessments levied by the
  948  corporation on assessable insurers under sub-subparagraph a.
  949  must be paid as required by the corporation’s plan of operation
  950  and paragraph (q). Assessments levied by the corporation on
  951  assessable insureds under sub-subparagraph a. shall be collected
  952  by the surplus lines agent at the time the surplus lines agent
  953  collects the surplus lines tax required by s. 626.932, and paid
  954  to the Florida Surplus Lines Service Office at the time the
  955  surplus lines agent pays the surplus lines tax to that office.
  956  Upon receipt of regular assessments from surplus lines agents,
  957  the Florida Surplus Lines Service Office shall transfer the
  958  assessments directly to the corporation as determined by the
  959  corporation.
  960         c. The corporation may not levy regular assessments under
  961  paragraph (q) pursuant to sub-subparagraph a. or sub
  962  subparagraph b. if the three separate accounts in sub-sub
  963  subparagraphs 2.a.(I)-(III) have been consolidated into the
  964  Citizens account pursuant to sub-subparagraph 2.b. However, the
  965  outstanding balance of any regular assessment levied by the
  966  corporation before establishment of the Citizens account remains
  967  payable to the corporation.
  968         b.d. After accounting for the Citizens policyholder
  969  surcharge imposed under sub-subparagraph a. j., the remaining
  970  projected deficits in the Citizens personal lines account and in
  971  the commercial lines account in a particular calendar year shall
  972  be recovered through emergency assessments under sub
  973  subparagraph c e.
  974         c.e. Upon a determination by the board of governors that a
  975  projected deficit in the Citizens an account exceeds the amount
  976  that is expected to be recovered through surcharges regular
  977  assessments under sub-subparagraph a., plus the amount that is
  978  expected to be recovered through surcharges under sub
  979  subparagraph j., the board, after verification by the office,
  980  shall levy emergency assessments for as many years as necessary
  981  to cover the deficits, to be collected by assessable insurers
  982  and the corporation and collected from assessable insureds upon
  983  issuance or renewal of policies for subject lines of business,
  984  excluding National Flood Insurance Program policies. The amount
  985  collected in a particular year must be a uniform percentage of
  986  that year’s direct written premium for subject lines of business
  987  and the Citizens account all accounts of the corporation,
  988  excluding National Flood Insurance Program policy premiums, as
  989  annually determined by the board and verified by the office. The
  990  office shall verify the arithmetic calculations involved in the
  991  board’s determination within 30 days after receipt of the
  992  information on which the determination was based. The office
  993  shall notify assessable insurers and the Florida Surplus Lines
  994  Service Office of the date on which assessable insurers shall
  995  begin to collect and assessable insureds shall begin to pay such
  996  assessment. The date must be at least 90 days after the date the
  997  corporation levies emergency assessments pursuant to this sub
  998  subparagraph. Notwithstanding any other provision of law, the
  999  corporation and each assessable insurer that writes subject
 1000  lines of business shall collect emergency assessments from its
 1001  policyholders without such obligation being affected by any
 1002  credit, limitation, exemption, or deferment. Emergency
 1003  assessments levied by the corporation on assessable insureds
 1004  shall be collected by the surplus lines agent at the time the
 1005  surplus lines agent collects the surplus lines tax required by
 1006  s. 626.932 and paid to the Florida Surplus Lines Service Office
 1007  at the time the surplus lines agent pays the surplus lines tax
 1008  to that office. The emergency assessments collected shall be
 1009  transferred directly to the corporation on a periodic basis as
 1010  determined by the corporation and held by the corporation solely
 1011  in the Citizens applicable account. The aggregate amount of
 1012  emergency assessments levied for the Citizens an account in any
 1013  calendar year may be less than but may not exceed the greater of
 1014  10 percent of the amount needed to cover the deficit, plus
 1015  interest, fees, commissions, required reserves, and other costs
 1016  associated with financing the original deficit, or 10 percent of
 1017  the aggregate statewide direct written premium for subject lines
 1018  of business and the Citizens account all accounts of the
 1019  corporation for the prior year, plus interest, fees,
 1020  commissions, required reserves, and other costs associated with
 1021  financing the deficit.
 1022         d.f. The corporation may pledge the proceeds of
 1023  assessments, projected recoveries from the Florida Hurricane
 1024  Catastrophe Fund, other insurance and reinsurance recoverables,
 1025  policyholder surcharges and other surcharges, and other funds
 1026  available to the corporation as the source of revenue for and to
 1027  secure bonds issued under paragraph (q), bonds or other
 1028  indebtedness issued under subparagraph (c)3., or lines of credit
 1029  or other financing mechanisms issued or created under this
 1030  subsection, or to retire any other debt incurred as a result of
 1031  deficits or events giving rise to deficits, or in any other way
 1032  that the board determines will efficiently recover such
 1033  deficits. The purpose of the lines of credit or other financing
 1034  mechanisms is to provide additional resources to assist the
 1035  corporation in covering claims and expenses attributable to a
 1036  catastrophe. As used in this subsection, the term “assessments”
 1037  includes emergency regular assessments under sub-subparagraph c.
 1038  a. or subparagraph (q)1. and emergency assessments under sub
 1039  subparagraph e. Emergency assessments collected under sub
 1040  subparagraph c. e. are not part of an insurer’s rates, are not
 1041  premium, and are not subject to premium tax, fees, or
 1042  commissions; however, failure to pay the emergency assessment
 1043  shall be treated as failure to pay premium. The emergency
 1044  assessments shall continue as long as any bonds issued or other
 1045  indebtedness incurred with respect to a deficit for which the
 1046  assessment was imposed remain outstanding, unless adequate
 1047  provision has been made for the payment of such bonds or other
 1048  indebtedness pursuant to the documents governing such bonds or
 1049  indebtedness.
 1050         e.g. As used in this subsection and for purposes of any
 1051  deficit incurred on or after January 25, 2007, the term “subject
 1052  lines of business” means insurance written by assessable
 1053  insurers or procured by assessable insureds for all property and
 1054  casualty lines of business in this state, but not including
 1055  workers’ compensation or medical malpractice. As used in this
 1056  sub-subparagraph, the term “property and casualty lines of
 1057  business” includes all lines of business identified on Form 2,
 1058  Exhibit of Premiums and Losses, in the annual statement required
 1059  of authorized insurers under s. 624.424 and any rule adopted
 1060  under this section, except for those lines identified as
 1061  accident and health insurance and except for policies written
 1062  under the National Flood Insurance Program or the Federal Crop
 1063  Insurance Program. For purposes of this sub-subparagraph, the
 1064  term “workers’ compensation” includes both workers’ compensation
 1065  insurance and excess workers’ compensation insurance.
 1066         f.h. The Florida Surplus Lines Service Office shall
 1067  annually determine annually the aggregate statewide written
 1068  premium in subject lines of business procured by assessable
 1069  insureds and report that information to the corporation in a
 1070  form and at a time the corporation specifies to ensure that the
 1071  corporation can meet the requirements of this subsection and the
 1072  corporation’s financing obligations.
 1073         g.i. The Florida Surplus Lines Service Office shall verify
 1074  the proper application by surplus lines agents of assessment
 1075  percentages for regular assessments and emergency assessments
 1076  levied under this subparagraph on assessable insureds and assist
 1077  the corporation in ensuring the accurate, timely collection and
 1078  payment of assessments by surplus lines agents as required by
 1079  the corporation.
 1080         j. Upon determination by the board of governors that an
 1081  account has a projected deficit, the board shall levy a Citizens
 1082  policyholder surcharge against all policyholders of the
 1083  corporation.
 1084         (I) The surcharge shall be levied as a uniform percentage
 1085  of the premium for the policy of up to 15 percent of such
 1086  premium, which funds shall be used to offset the deficit.
 1087         (II) The surcharge is payable upon cancellation or
 1088  termination of the policy, upon renewal of the policy, or upon
 1089  issuance of a new policy by the corporation within the first 12
 1090  months after the date of the levy or the period of time
 1091  necessary to fully collect the surcharge amount.
 1092         (III) The corporation may not levy any regular assessments
 1093  under paragraph (q) pursuant to sub-subparagraph a. or sub
 1094  subparagraph b. with respect to a particular year’s deficit
 1095  until the corporation has first levied the full amount of the
 1096  surcharge authorized by this sub-subparagraph.
 1097         (IV) The surcharge is not considered premium and is not
 1098  subject to commissions, fees, or premium taxes. However, failure
 1099  to pay the surcharge shall be treated as failure to pay premium.
 1100         h.k. If the amount of any assessments or surcharges
 1101  collected from corporation policyholders, assessable insurers or
 1102  their policyholders, or assessable insureds exceeds the amount
 1103  of the deficits, such excess amounts shall be remitted to and
 1104  retained by the corporation in a reserve to be used by the
 1105  corporation, as determined by the board of governors and
 1106  approved by the office, to pay claims or reduce any past,
 1107  present, or future plan-year deficits or to reduce outstanding
 1108  debt.
 1109         4.The Citizens account, if established by the corporation
 1110  pursuant to sub-subparagraph 2.b., is authorized to provide:
 1111         a. Personal residential policies that provide
 1112  comprehensive, multiperil coverage on risks that are not located
 1113  in areas eligible for coverage by the Florida Windstorm
 1114  Underwriting Association, as those areas were defined on January
 1115  1, 2002, and for policies that do not provide coverage for the
 1116  peril of wind on risks that are located in such areas;
 1117         b. Commercial residential and commercial nonresidential
 1118  policies that provide coverage for basic property perils on
 1119  risks that are not located in areas eligible for coverage by the
 1120  Florida Windstorm Underwriting Association, as those areas were
 1121  defined on January 1, 2002, and for policies that do not provide
 1122  coverage for the peril of wind on risks that are located in such
 1123  areas; and
 1124         c. Personal residential policies and commercial residential
 1125  and commercial nonresidential property policies that provide
 1126  coverage for the peril of wind on risks that are located in
 1127  areas eligible for coverage by the Florida Windstorm
 1128  Underwriting Association, as those areas were defined on January
 1129  1, 2002. The corporation may offer policies that provide
 1130  multiperil coverage and shall offer policies that provide
 1131  coverage only for the peril of wind for risks located in areas
 1132  eligible for coverage by the Florida Windstorm Underwriting
 1133  Association, as those areas were defined on January 1, 2002. The
 1134  corporation may not offer new commercial residential policies
 1135  providing multiperil coverage, but shall continue to offer
 1136  commercial residential wind-only policies, and may offer
 1137  commercial residential policies excluding wind. However, the
 1138  corporation may continue to renew a commercial residential
 1139  multiperil policy on a building that was insured by the
 1140  corporation on June 30, 2014, under a multiperil policy. In
 1141  issuing multiperil coverage under this sub-subparagraph, the
 1142  corporation may use its approved policy forms and rates for
 1143  risks located in areas not eligible for coverage by the Florida
 1144  Windstorm Underwriting Association as those areas were defined
 1145  on January 1, 2002, and for policies that do not provide
 1146  coverage for the peril of wind on risks that are located in such
 1147  areas. An applicant or insured who is eligible to purchase a
 1148  multiperil policy from the corporation may purchase a multiperil
 1149  policy from an authorized insurer without prejudice to the
 1150  applicant’s or insured’s eligibility to prospectively purchase a
 1151  policy that provides coverage only for the peril of wind from
 1152  the corporation. An applicant or insured who is eligible for a
 1153  corporation policy that provides coverage only for the peril of
 1154  wind may elect to purchase or retain such policy and also
 1155  purchase or retain coverage excluding wind from an authorized
 1156  insurer without prejudice to the applicant’s or insured’s
 1157  eligibility to prospectively purchase a policy that provides
 1158  multiperil coverage from the corporation. The following
 1159  policies, which provide coverage only for the peril of wind,
 1160  must also include quota share primary insurance under
 1161  subparagraph (c)2.: Personal residential policies and commercial
 1162  residential and commercial nonresidential property policies that
 1163  provide coverage for the peril of wind on risks that are located
 1164  in areas eligible for coverage by the Florida Windstorm
 1165  Underwriting Association, as those areas were defined on January
 1166  1, 2002; policies that provide multiperil coverage, if offered
 1167  by the corporation, and policies that provide coverage only for
 1168  the peril of wind for risks located in areas eligible for
 1169  coverage by the Florida Windstorm Underwriting Association, as
 1170  those areas were defined on January 1, 2002; commercial
 1171  residential wind-only policies; commercial residential policies
 1172  excluding wind, if offered by the corporation; and commercial
 1173  residential multiperil policies on a building that was insured
 1174  by the corporation on June 30, 2014. The area eligible for
 1175  coverage with the corporation under this sub-subparagraph
 1176  includes the area within Port Canaveral, which is bordered on
 1177  the south by the City of Cape Canaveral, bordered on the west by
 1178  the Banana River, and bordered on the north by Federal
 1179  Government property.
 1180         5. With respect to a deficit in the Citizens account:
 1181         a. Upon a determination by the board of governors that the
 1182  Citizens account has a projected deficit, the board shall levy a
 1183  Citizens policyholder surcharge against all policyholders of the
 1184  corporation.
 1185         (I) The surcharge shall be levied as a uniform percentage
 1186  of the premium for the policy of up to 15 percent of such
 1187  premium, which funds shall be used to offset the deficit.
 1188         (II) The surcharge is payable upon cancellation or
 1189  termination of the policy, upon renewal of the policy, or upon
 1190  issuance of a new policy by the corporation within the first 12
 1191  months after the date of the levy or the period of time
 1192  necessary to fully collect the surcharge amount.
 1193         (III) The surcharge is not considered premium and is not
 1194  subject to commissions, fees, or premium taxes. However, failure
 1195  to pay the surcharge shall be treated as failure to pay premium.
 1196         b. After accounting for the Citizens policyholder surcharge
 1197  imposed under sub-subparagraph a., the remaining projected
 1198  deficit incurred in the Citizens account in a particular
 1199  calendar year shall be recovered through emergency assessments
 1200  under sub-subparagraph c.
 1201         c. Upon a determination by the board of governors that a
 1202  projected deficit in the Citizens account exceeds the amount
 1203  that is expected to be recovered through surcharges under sub
 1204  subparagraph a., the board, after verification by the office,
 1205  shall levy emergency assessments for as many years as necessary
 1206  to cover the deficits, to be collected by assessable insurers
 1207  and the corporation and collected from assessable insureds upon
 1208  issuance or renewal of policies for subject lines of business,
 1209  excluding National Flood Insurance Program policies. The amount
 1210  collected in a particular year must be a uniform percentage of
 1211  that year’s direct written premium for subject lines of business
 1212  and the Citizens account, National Flood Insurance Program
 1213  policy premiums, as annually determined by the board and
 1214  verified by the office. The office shall verify the arithmetic
 1215  calculations involved in the board’s determination within 30
 1216  days after receipt of the information on which the determination
 1217  was based. The office shall notify assessable insurers and the
 1218  Florida Surplus Lines Service Office of the date on which
 1219  assessable insurers shall begin to collect and assessable
 1220  insureds shall begin to pay such assessment. The date must be at
 1221  least 90 days after the date the corporation levies emergency
 1222  assessments pursuant to this sub-subparagraph. Notwithstanding
 1223  any other law, the corporation and each assessable insurer that
 1224  writes subject lines of business shall collect emergency
 1225  assessments from its policyholders without such obligation being
 1226  affected by any credit, limitation, exemption, or deferment.
 1227  Emergency assessments levied by the corporation on assessable
 1228  insureds shall be collected by the surplus lines agent at the
 1229  time the surplus lines agent collects the surplus lines tax
 1230  required by s. 626.932 and paid to the Florida Surplus Lines
 1231  Service Office at the time the surplus lines agent pays the
 1232  surplus lines tax to that office. The emergency assessments
 1233  collected shall be transferred directly to the corporation on a
 1234  periodic basis as determined by the corporation and held by the
 1235  corporation solely in the Citizens account. The aggregate amount
 1236  of emergency assessments levied for the Citizens account in any
 1237  calendar year may be less than, but may not exceed the greater
 1238  of, 10 percent of the amount needed to cover the deficit, plus
 1239  interest, fees, commissions, required reserves, and other costs
 1240  associated with financing the original deficit or 10 percent of
 1241  the aggregate statewide direct written premium for subject lines
 1242  of business and the Citizens accounts for the prior year, plus
 1243  interest, fees, commissions, required reserves, and other costs
 1244  associated with financing the deficit.
 1245         d. The corporation may pledge the proceeds of assessments,
 1246  projected recoveries from the Florida Hurricane Catastrophe
 1247  Fund, other insurance and reinsurance recoverables, policyholder
 1248  surcharges and other surcharges, and other funds available to
 1249  the corporation as the source of revenue for and to secure bonds
 1250  issued under paragraph (q), bonds or other indebtedness issued
 1251  under subparagraph (c)3., or lines of credit or other financing
 1252  mechanisms issued or created under this subsection; or to retire
 1253  any other debt incurred as a result of deficits or events giving
 1254  rise to deficits, or in any other way that the board determines
 1255  will efficiently recover such deficits. The purpose of the lines
 1256  of credit or other financing mechanisms is to provide additional
 1257  resources to assist the corporation in covering claims and
 1258  expenses attributable to a catastrophe. As used in this
 1259  subsection, the term “assessments” includes emergency
 1260  assessments under sub-subparagraph c. Emergency assessments
 1261  collected under sub-subparagraph c. are not part of an insurer’s
 1262  rates, are not premium, and are not subject to premium tax,
 1263  fees, or commissions; however, failure to pay the emergency
 1264  assessment shall be treated as failure to pay premium. The
 1265  emergency assessments shall continue as long as any bonds issued
 1266  or other indebtedness incurred with respect to a deficit for
 1267  which the assessment was imposed remain outstanding, unless
 1268  adequate provision has been made for the payment of such bonds
 1269  or other indebtedness pursuant to the documents governing such
 1270  bonds or indebtedness.
 1271         e. As used in this subsection and for purposes of any
 1272  deficit incurred on or after January 25, 2007, the term “subject
 1273  lines of business” means insurance written by assessable
 1274  insurers or procured by assessable insureds for all property and
 1275  casualty lines of business in this state, but not including
 1276  workers’ compensation or medical malpractice. As used in this
 1277  sub-subparagraph, the term “property and casualty lines of
 1278  business” includes all lines of business identified on Form 2,
 1279  Exhibit of Premiums and Losses, in the annual statement required
 1280  of authorized insurers under s. 624.424 and any rule adopted
 1281  under this section, except for those lines identified as
 1282  accident and health insurance and except for policies written
 1283  under the National Flood Insurance Program or the Federal Crop
 1284  Insurance Program. For purposes of this sub-subparagraph, the
 1285  term “workers’ compensation” includes both workers’ compensation
 1286  insurance and excess workers’ compensation insurance.
 1287         f. The Florida Surplus Lines Service Office shall annually
 1288  determine the aggregate statewide written premium in subject
 1289  lines of business procured by assessable insureds and report
 1290  that information to the corporation in a form and at a time the
 1291  corporation specifies to ensure that the corporation can meet
 1292  the requirements of this subsection and the corporation’s
 1293  financing obligations.
 1294         g. The Florida Surplus Lines Service Office shall verify
 1295  the proper application by surplus lines agents of assessment
 1296  percentages for emergency assessments levied under this
 1297  subparagraph on assessable insureds and assist the corporation
 1298  in ensuring the accurate, timely collection and payment of
 1299  assessments by surplus lines agents as required by the
 1300  corporation.
 1301         h. If the amount of any assessments or surcharges collected
 1302  from corporation policyholders, assessable insurers or their
 1303  policyholders, or assessable insureds exceeds the amount of the
 1304  deficits, such excess amounts shall be remitted to and retained
 1305  by the corporation in a reserve to be used by the corporation,
 1306  as determined by the board of governors and approved by the
 1307  office, to pay claims or reduce any past, present, or future
 1308  plan-year deficits or to reduce outstanding debt.
 1309         (c) The corporation’s plan of operation:
 1310         1. Must provide for adoption of residential property and
 1311  casualty insurance policy forms and commercial residential and
 1312  nonresidential property insurance forms, which must be approved
 1313  by the office before use. The corporation shall adopt the
 1314  following policy forms:
 1315         a. Standard personal lines policy forms that are
 1316  comprehensive multiperil policies providing full coverage of a
 1317  residential property equivalent to the coverage provided in the
 1318  private insurance market under an HO-3, HO-4, or HO-6 policy.
 1319         b. Basic personal lines policy forms that are policies
 1320  similar to an HO-8 policy or a dwelling fire policy that provide
 1321  coverage meeting the requirements of the secondary mortgage
 1322  market, but which is more limited than the coverage under a
 1323  standard policy.
 1324         c. Commercial lines residential and nonresidential policy
 1325  forms that are generally similar to the basic perils of full
 1326  coverage obtainable for commercial residential structures and
 1327  commercial nonresidential structures in the admitted voluntary
 1328  market.
 1329         d. Personal lines and commercial lines residential property
 1330  insurance forms that cover the peril of wind only. The forms are
 1331  applicable only to residential properties located in areas
 1332  eligible for coverage by the Florida Windstorm Underwriting
 1333  Association, as those areas were defined on January 1, 2002.
 1334         e. Commercial lines nonresidential property insurance forms
 1335  that cover the peril of wind only. The forms are applicable only
 1336  to nonresidential properties located in areas eligible for
 1337  coverage by the Florida Windstorm Underwriting Association, as
 1338  those areas were defined on January 1, 2002.
 1339         f. The corporation may adopt variations of the policy forms
 1340  listed in sub-subparagraphs a.-e. which contain more restrictive
 1341  coverage.
 1342         g. The corporation shall offer a basic personal lines
 1343  policy similar to an HO-8 policy with dwelling repair based on
 1344  common construction materials and methods.
 1345         2. Must provide that the corporation adopt a program in
 1346  which the corporation and authorized insurers enter into quota
 1347  share primary insurance agreements for hurricane coverage, as
 1348  defined in s. 627.4025(2)(a), for eligible risks, and adopt
 1349  property insurance forms for eligible risks which cover the
 1350  peril of wind only.
 1351         a. As used in this subsection, the term:
 1352         (I)“Approved rate” means:
 1353         (A)With respect to an authorized insurer that holds a
 1354  certificate of authority, such insurer’s filed and approved
 1355  rate.
 1356         (B)With respect to an authorized insurer that is an
 1357  eligible surplus lines insurer, the rate approved by the office
 1358  as part of such insurer’s take-out plan.
 1359         (II)“Authorized insurer” means:
 1360         (A)An insurer holding a certificate of authority; or
 1361         (B)An eligible surplus lines insurer that is “A” or higher
 1362  by A.M. Best Company and whose Florida personal lines
 1363  residential or commercial lines residential risk program is
 1364  managed by a Florida resident surplus lines broker.
 1365         (IV)“Primary residence” means the dwelling that is the
 1366  policyholder’s primary home or is a rental property that is the
 1367  primary home of the tenant, and which the policyholder or tenant
 1368  occupies for more than 9 months of each year.
 1369         (V)(I) “Quota share primary insurance” means an arrangement
 1370  in which the primary hurricane coverage of an eligible risk is
 1371  provided in specified percentages by the corporation and an
 1372  authorized insurer. The corporation and authorized insurer are
 1373  each solely responsible for a specified percentage of hurricane
 1374  coverage of an eligible risk as set forth in a quota share
 1375  primary insurance agreement between the corporation and an
 1376  authorized insurer and the insurance contract. The
 1377  responsibility of the corporation or authorized insurer to pay
 1378  its specified percentage of hurricane losses of an eligible
 1379  risk, as set forth in the agreement, may not be altered by the
 1380  inability of the other party to pay its specified percentage of
 1381  losses. Eligible risks that are provided hurricane coverage
 1382  through a quota share primary insurance arrangement must be
 1383  provided policy forms that set forth the obligations of the
 1384  corporation and authorized insurer under the arrangement,
 1385  clearly specify the percentages of quota share primary insurance
 1386  provided by the corporation and authorized insurer, and
 1387  conspicuously and clearly state that the authorized insurer and
 1388  the corporation may not be held responsible beyond their
 1389  specified percentage of coverage of hurricane losses.
 1390         (III)(II) “Eligible risks” means personal lines residential
 1391  and commercial lines residential risks that meet the
 1392  underwriting criteria of the corporation and are located in
 1393  areas that were eligible for coverage by the Florida Windstorm
 1394  Underwriting Association on January 1, 2002.
 1395         b. The corporation may enter into quota share primary
 1396  insurance agreements with authorized insurers at corporation
 1397  coverage levels of 90 percent and 50 percent.
 1398         c. If the corporation determines that additional coverage
 1399  levels are necessary to maximize participation in quota share
 1400  primary insurance agreements by authorized insurers, the
 1401  corporation may establish additional coverage levels. However,
 1402  the corporation’s quota share primary insurance coverage level
 1403  may not exceed 90 percent.
 1404         d. Any quota share primary insurance agreement entered into
 1405  between an authorized insurer and the corporation must provide
 1406  for a uniform specified percentage of coverage of hurricane
 1407  losses, by county or territory as set forth by the corporation
 1408  board, for all eligible risks of the authorized insurer covered
 1409  under the agreement.
 1410         e. Any quota share primary insurance agreement entered into
 1411  between an authorized insurer and the corporation is subject to
 1412  review and approval by the office. However, such agreement shall
 1413  be authorized only as to insurance contracts entered into
 1414  between an authorized insurer and an insured who is already
 1415  insured by the corporation for wind coverage.
 1416         f. For all eligible risks covered under quota share primary
 1417  insurance agreements, the exposure and coverage levels for both
 1418  the corporation and authorized insurers shall be reported by the
 1419  corporation to the Florida Hurricane Catastrophe Fund. For all
 1420  policies of eligible risks covered under such agreements, the
 1421  corporation and the authorized insurer must maintain complete
 1422  and accurate records for the purpose of exposure and loss
 1423  reimbursement audits as required by fund rules. The corporation
 1424  and the authorized insurer shall each maintain duplicate copies
 1425  of policy declaration pages and supporting claims documents.
 1426         g. The corporation board shall establish in its plan of
 1427  operation standards for quota share agreements which ensure that
 1428  there is no discriminatory application among insurers as to the
 1429  terms of the agreements, pricing of the agreements, incentive
 1430  provisions if any, and consideration paid for servicing policies
 1431  or adjusting claims.
 1432         h. The quota share primary insurance agreement between the
 1433  corporation and an authorized insurer must set forth the
 1434  specific terms under which coverage is provided, including, but
 1435  not limited to, the sale and servicing of policies issued under
 1436  the agreement by the insurance agent of the authorized insurer
 1437  producing the business, the reporting of information concerning
 1438  eligible risks, the payment of premium to the corporation, and
 1439  arrangements for the adjustment and payment of hurricane claims
 1440  incurred on eligible risks by the claims adjuster and personnel
 1441  of the authorized insurer. Entering into a quota sharing
 1442  insurance agreement between the corporation and an authorized
 1443  insurer is voluntary and at the discretion of the authorized
 1444  insurer.
 1445         3. May provide that the corporation may employ or otherwise
 1446  contract with individuals or other entities to provide
 1447  administrative or professional services that may be appropriate
 1448  to effectuate the plan. The corporation may borrow funds by
 1449  issuing bonds or by incurring other indebtedness, and shall have
 1450  other powers reasonably necessary to effectuate the requirements
 1451  of this subsection, including, without limitation, the power to
 1452  issue bonds and incur other indebtedness in order to refinance
 1453  outstanding bonds or other indebtedness. The corporation may
 1454  seek judicial validation of its bonds or other indebtedness
 1455  under chapter 75. The corporation may issue bonds or incur other
 1456  indebtedness, or have bonds issued on its behalf by a unit of
 1457  local government pursuant to subparagraph (q)2. in the absence
 1458  of a hurricane or other weather-related event, upon a
 1459  determination by the corporation, subject to approval by the
 1460  office, that such action would enable it to efficiently meet the
 1461  financial obligations of the corporation and that such
 1462  financings are reasonably necessary to effectuate the
 1463  requirements of this subsection. The corporation may take all
 1464  actions needed to facilitate tax-free status for such bonds or
 1465  indebtedness, including formation of trusts or other affiliated
 1466  entities. The corporation may pledge assessments, projected
 1467  recoveries from the Florida Hurricane Catastrophe Fund, other
 1468  reinsurance recoverables, policyholder surcharges and other
 1469  surcharges, and other funds available to the corporation as
 1470  security for bonds or other indebtedness. In recognition of s.
 1471  10, Art. I of the State Constitution, prohibiting the impairment
 1472  of obligations of contracts, it is the intent of the Legislature
 1473  that no action be taken whose purpose is to impair any bond
 1474  indenture or financing agreement or any revenue source committed
 1475  by contract to such bond or other indebtedness.
 1476         4. Must require that the corporation operate subject to the
 1477  supervision and approval of a board of governors consisting of
 1478  nine individuals who are residents of this state and who are
 1479  from different geographical areas of the state, one of whom is
 1480  appointed by the Governor and serves solely to advocate on
 1481  behalf of the consumer. The appointment of a consumer
 1482  representative by the Governor is deemed to be within the scope
 1483  of the exemption provided in s. 112.313(7)(b) and is in addition
 1484  to the appointments authorized under sub-subparagraph a.
 1485         a. The Governor, the Chief Financial Officer, the President
 1486  of the Senate, and the Speaker of the House of Representatives
 1487  shall each appoint two members of the board. At least one of the
 1488  two members appointed by each appointing officer must have
 1489  demonstrated expertise in insurance and be deemed to be within
 1490  the scope of the exemption provided in s. 112.313(7)(b). The
 1491  Chief Financial Officer shall designate one of the appointees as
 1492  chair. All board members serve at the pleasure of the appointing
 1493  officer. All members of the board are subject to removal at will
 1494  by the officers who appointed them. All board members, including
 1495  the chair, must be appointed to serve for 3-year terms beginning
 1496  annually on a date designated by the plan. However, for the
 1497  first term beginning on or after July 1, 2009, each appointing
 1498  officer shall appoint one member of the board for a 2-year term
 1499  and one member for a 3-year term. A board vacancy shall be
 1500  filled for the unexpired term by the appointing officer. The
 1501  Chief Financial Officer shall appoint a technical advisory group
 1502  to provide information and advice to the board in connection
 1503  with the board’s duties under this subsection. The executive
 1504  director and senior managers of the corporation shall be engaged
 1505  by the board and serve at the pleasure of the board. Any
 1506  executive director appointed on or after July 1, 2006, is
 1507  subject to confirmation by the Senate. The executive director is
 1508  responsible for employing other staff as the corporation may
 1509  require, subject to review and concurrence by the board.
 1510         b. The board shall create a Market Accountability Advisory
 1511  Committee to assist the corporation in developing awareness of
 1512  its rates and its customer and agent service levels in
 1513  relationship to the voluntary market insurers writing similar
 1514  coverage.
 1515         (I) The members of the advisory committee consist of the
 1516  following 11 persons, one of whom must be elected chair by the
 1517  members of the committee: four representatives, one appointed by
 1518  the Florida Association of Insurance Agents, one by the Florida
 1519  Association of Insurance and Financial Advisors, one by the
 1520  Professional Insurance Agents of Florida, and one by the Latin
 1521  American Association of Insurance Agencies; three
 1522  representatives appointed by the insurers with the three highest
 1523  voluntary market share of residential property insurance
 1524  business in the state; one representative from the Office of
 1525  Insurance Regulation; one consumer appointed by the board who is
 1526  insured by the corporation at the time of appointment to the
 1527  committee; one representative appointed by the Florida
 1528  Association of Realtors; and one representative appointed by the
 1529  Florida Bankers Association. All members shall be appointed to
 1530  3-year terms and may serve for consecutive terms.
 1531         (II) The committee shall report to the corporation at each
 1532  board meeting on insurance market issues which may include rates
 1533  and rate competition with the voluntary market; service,
 1534  including policy issuance, claims processing, and general
 1535  responsiveness to policyholders, applicants, and agents; and
 1536  matters relating to depopulation.
 1537         5. Must provide a procedure for determining the eligibility
 1538  of a risk for coverage, as follows:
 1539         a. Subject to s. 627.3517, with respect to personal lines
 1540  residential risks, if the risk is offered coverage from an
 1541  authorized insurer at the insurer’s approved rate under a
 1542  standard policy including wind coverage or, if consistent with
 1543  the insurer’s underwriting rules as filed with the office, a
 1544  basic policy including wind coverage, for a new application to
 1545  the corporation for coverage, the risk is not eligible for any
 1546  policy issued by the corporation unless the premium for coverage
 1547  from the authorized insurer is more than 20 percent greater than
 1548  the premium for comparable coverage from the corporation.
 1549  Whenever an offer of coverage for a personal lines residential
 1550  risk is received for a policyholder of the corporation at
 1551  renewal from an authorized insurer, if the offer is equal to or
 1552  less than the corporation’s renewal premium for comparable
 1553  coverage, the risk is not eligible for coverage with the
 1554  corporation for policies that renew before April 1, 2023; for
 1555  policies that renew on or after that date, the risk is not
 1556  eligible for coverage with the corporation unless the premium
 1557  for coverage from the authorized insurer is more than 20 percent
 1558  greater than the corporation’s renewal premium for comparable
 1559  coverage. If the risk is not able to obtain such offer, the risk
 1560  is eligible for a standard policy including wind coverage or a
 1561  basic policy including wind coverage issued by the corporation;
 1562  however, if the risk could not be insured under a standard
 1563  policy including wind coverage regardless of market conditions,
 1564  the risk is eligible for a basic policy including wind coverage
 1565  unless rejected under subparagraph 8. The corporation shall
 1566  determine the type of policy to be provided on the basis of
 1567  objective standards specified in the underwriting manual and
 1568  based on generally accepted underwriting practices. A
 1569  policyholder removed from the corporation through an assumption
 1570  agreement does not remain eligible for coverage from the
 1571  corporation after the end of the policy term. However, any
 1572  policy removed from the corporation through an assumption
 1573  agreement remains on the corporation’s policy forms through the
 1574  end of the policy term. However, notwithstanding any other
 1575  provision of law, this sub-subparagraph does not apply to a
 1576  policy that does not cover a primary residence.
 1577         (I) If the risk accepts an offer of coverage through the
 1578  market assistance plan or through a mechanism established by the
 1579  corporation other than a plan established by s. 627.3518, before
 1580  a policy is issued to the risk by the corporation or during the
 1581  first 30 days of coverage by the corporation, and the producing
 1582  agent who submitted the application to the plan or to the
 1583  corporation is not currently appointed by the insurer, the
 1584  insurer shall:
 1585         (A) Pay to the producing agent of record of the policy for
 1586  the first year, an amount that is the greater of the insurer’s
 1587  usual and customary commission for the type of policy written or
 1588  a fee equal to the usual and customary commission of the
 1589  corporation; or
 1590         (B) Offer to allow the producing agent of record of the
 1591  policy to continue servicing the policy for at least 1 year and
 1592  offer to pay the agent the greater of the insurer’s or the
 1593  corporation’s usual and customary commission for the type of
 1594  policy written.
 1595  
 1596  If the producing agent is unwilling or unable to accept
 1597  appointment for any reason, including the failure of such agent
 1598  to be licensed as a surplus line agent, the new insurer shall
 1599  pay the agent in accordance with sub-sub-sub-subparagraph (A).
 1600         (II) If the corporation enters into a contractual agreement
 1601  for a take-out plan, the producing agent of record of the
 1602  corporation policy is entitled to retain any unearned commission
 1603  on the policy, and the insurer shall:
 1604         (A) Pay to the producing agent of record, for the first
 1605  year, an amount that is the greater of the insurer’s usual and
 1606  customary commission for the type of policy written or a fee
 1607  equal to the usual and customary commission of the corporation;
 1608  or
 1609         (B) Offer to allow the producing agent of record to
 1610  continue servicing the policy for at least 1 year and offer to
 1611  pay the agent the greater of the insurer’s or the corporation’s
 1612  usual and customary commission for the type of policy written.
 1613  
 1614  If the producing agent is unwilling or unable to accept
 1615  appointment for any reason, including the failure of such agent
 1616  to be licensed as a surplus lines agent, the new insurer shall
 1617  pay the agent in accordance with sub-sub-sub-subparagraph (A).
 1618  This sub-sub-subparagraph does not apply to an authorized
 1619  insurer that is an eligible surplus lines insurer.
 1620         b. With respect to commercial lines residential risks, for
 1621  a new application to the corporation for coverage, if the risk
 1622  is offered coverage under a policy including wind coverage from
 1623  an admitted authorized insurer at its approved rate, the risk is
 1624  not eligible for a policy issued by the corporation unless the
 1625  premium for coverage from the admitted authorized insurer is
 1626  more than 20 percent greater than the premium for comparable
 1627  coverage from the corporation. Whenever an offer of coverage for
 1628  a commercial lines residential risk is received for a
 1629  policyholder of the corporation at renewal from an admitted
 1630  authorized insurer, the risk is not eligible for coverage with
 1631  the corporation unless the premium for coverage from the
 1632  admitted authorized insurer is more than 20 percent greater than
 1633  the corporation’s renewal premium for comparable coverage. If
 1634  the risk is not able to obtain any such offer, the risk is
 1635  eligible for a policy including wind coverage issued by the
 1636  corporation. A policyholder removed from the corporation through
 1637  an assumption agreement remains eligible for coverage from the
 1638  corporation until the end of the policy term. However, any
 1639  policy removed from the corporation through an assumption
 1640  agreement remains on the corporation’s policy forms through the
 1641  end of the policy term. With respect to commercial lines
 1642  residential risks for a new application to the corporation for
 1643  coverage, if the risk is offered coverage from an eligible
 1644  surplus lines insurer at the insurer’s approved rate under a
 1645  policy including wind coverage, the risk is not eligible for a
 1646  policy issued by the corporation. If an offer of coverage for a
 1647  commercial lines residential risk is received for a policyholder
 1648  of the corporation by an eligible surplus lines insurer at
 1649  renewal, the risk is not eligible for coverage with the
 1650  corporation.
 1651         (I) If the risk accepts an offer of coverage through the
 1652  market assistance plan or through a mechanism established by the
 1653  corporation other than a plan established by s. 627.3518, before
 1654  a policy is issued to the risk by the corporation or during the
 1655  first 30 days of coverage by the corporation, and the producing
 1656  agent who submitted the application to the plan or the
 1657  corporation is not currently appointed by the insurer, the
 1658  insurer shall:
 1659         (A) Pay to the producing agent of record of the policy, for
 1660  the first year, an amount that is the greater of the insurer’s
 1661  usual and customary commission for the type of policy written or
 1662  a fee equal to the usual and customary commission of the
 1663  corporation; or
 1664         (B) Offer to allow the producing agent of record of the
 1665  policy to continue servicing the policy for at least 1 year and
 1666  offer to pay the agent the greater of the insurer’s or the
 1667  corporation’s usual and customary commission for the type of
 1668  policy written.
 1669  
 1670  If the producing agent is unwilling or unable to accept
 1671  appointment for any reason, including the failure of such agent
 1672  to be licensed as a surplus lines agent, the new insurer shall
 1673  pay the agent in accordance with sub-sub-sub-subparagraph (A).
 1674  This sub-sub-subparagraph does not apply to an authorized
 1675  insurer that is an eligible surplus lines insurer.
 1676         (II) If the corporation enters into a contractual agreement
 1677  for a take-out plan, the producing agent of record of the
 1678  corporation policy is entitled to retain any unearned commission
 1679  on the policy, and the insurer shall:
 1680         (A) Pay to the producing agent of record, for the first
 1681  year, an amount that is the greater of the insurer’s usual and
 1682  customary commission for the type of policy written or a fee
 1683  equal to the usual and customary commission of the corporation;
 1684  or
 1685         (B) Offer to allow the producing agent of record to
 1686  continue servicing the policy for at least 1 year and offer to
 1687  pay the agent the greater of the insurer’s or the corporation’s
 1688  usual and customary commission for the type of policy written.
 1689  
 1690  If the producing agent is unwilling or unable to accept
 1691  appointment for any reason, including the failure of such agent
 1692  to be licensed as a surplus line agent, the new insurer shall
 1693  pay the agent in accordance with sub-sub-sub-subparagraph (A).
 1694         c. For purposes of determining comparable coverage under
 1695  sub-subparagraphs a. and b., the comparison must be based on
 1696  those forms and coverages that are reasonably comparable. The
 1697  corporation may rely on a determination of comparable coverage
 1698  and premium made by the producing agent who submits the
 1699  application to the corporation, made in the agent’s capacity as
 1700  the corporation’s agent. For purposes of comparing the premium
 1701  for comparable coverage under sub-subparagraphs a. and b.,
 1702  premium includes any surcharge or assessment that is actually
 1703  applied to such policy. A comparison may be made solely of the
 1704  premium with respect to the main building or structure only on
 1705  the following basis: the same Coverage A or other building
 1706  limits; the same percentage hurricane deductible that applies on
 1707  an annual basis or that applies to each hurricane for commercial
 1708  residential property; the same percentage of ordinance and law
 1709  coverage, if the same limit is offered by both the corporation
 1710  and the authorized insurer; the same mitigation credits, to the
 1711  extent the same types of credits are offered both by the
 1712  corporation and the authorized insurer; the same method for loss
 1713  payment, such as replacement cost or actual cash value, if the
 1714  same method is offered both by the corporation and the
 1715  authorized insurer in accordance with underwriting rules; and
 1716  any other form or coverage that is reasonably comparable as
 1717  determined by the board. If an application is submitted to the
 1718  corporation for wind-only coverage on a risk that is located in
 1719  an area eligible for coverage by the Florida Windstorm
 1720  Underwriting Association, as that area was defined on January 1,
 1721  2002, the premium for the corporation’s wind-only policy plus
 1722  the premium for the ex-wind policy that is offered by an
 1723  authorized insurer to the applicant must be compared to the
 1724  premium for multiperil coverage offered by an authorized
 1725  insurer, subject to the standards for comparison specified in
 1726  this subparagraph. If the corporation or the applicant requests
 1727  from the authorized insurer a breakdown of the premium of the
 1728  offer by types of coverage so that a comparison may be made by
 1729  the corporation or its agent and the authorized insurer refuses
 1730  or is unable to provide such information, the corporation may
 1731  treat the offer as not being an offer of coverage from an
 1732  authorized insurer at the insurer’s approved rate. However,
 1733  notwithstanding any other provision of law, this sub
 1734  subparagraph does not apply to a policy that does not cover a
 1735  primary residence.
 1736         6. Must include rules for classifications of risks and
 1737  rates.
 1738         7. Must provide that if premium and investment income:
 1739         a. for the Citizens an account, which are attributable to a
 1740  particular calendar year are in excess of projected losses and
 1741  expenses for the Citizens account attributable to that year,
 1742  such excess shall be held in surplus in the Citizens account.
 1743  Such surplus must be available to defray deficits in the
 1744  Citizens that account as to future years and used for that
 1745  purpose before assessing assessable insurers and assessable
 1746  insureds as to any calendar year; or
 1747         b.For the Citizens account, if established by the
 1748  corporation, which are attributable to a particular calendar
 1749  year are in excess of projected losses and expenses for the
 1750  Citizens account attributable to that year, such excess shall be
 1751  held in surplus in the Citizens account. Such surplus must be
 1752  available to defray deficits in the Citizens account as to
 1753  future years and used for that purpose before assessing
 1754  assessable insurers and assessable insureds as to any calendar
 1755  year.
 1756         8. Must provide objective criteria and procedures to be
 1757  uniformly applied to all applicants in determining whether an
 1758  individual risk is so hazardous as to be uninsurable. In making
 1759  this determination and in establishing the criteria and
 1760  procedures, the following must be considered:
 1761         a. Whether the likelihood of a loss for the individual risk
 1762  is substantially higher than for other risks of the same class;
 1763  and
 1764         b. Whether the uncertainty associated with the individual
 1765  risk is such that an appropriate premium cannot be determined.
 1766  
 1767  The acceptance or rejection of a risk by the corporation shall
 1768  be construed as the private placement of insurance, and the
 1769  provisions of chapter 120 do not apply.
 1770         9. Must provide that the corporation make its best efforts
 1771  to procure catastrophe reinsurance at reasonable rates, to cover
 1772  its projected 100-year probable maximum loss as determined by
 1773  the board of governors. If catastrophe reinsurance is not
 1774  available at reasonable rates, the corporation need not purchase
 1775  it, but the corporation shall include the costs of reinsurance
 1776  to cover its projected 100-year probable maximum loss in its
 1777  rate calculations even if it does not purchase catastrophe
 1778  reinsurance.
 1779         10. The policies issued by the corporation must provide
 1780  that if the corporation or the market assistance plan obtains an
 1781  offer from an authorized insurer to cover the risk at its
 1782  approved rates, the risk is no longer eligible for renewal
 1783  through the corporation, except as otherwise provided in this
 1784  subsection.
 1785         11. Corporation policies and applications must include a
 1786  notice that the corporation policy could, under this section, be
 1787  replaced with a policy issued by an authorized insurer which
 1788  does not provide coverage identical to the coverage provided by
 1789  the corporation. The notice must also specify that acceptance of
 1790  corporation coverage creates a conclusive presumption that the
 1791  applicant or policyholder is aware of this potential.
 1792         12. May establish, subject to approval by the office,
 1793  different eligibility requirements and operational procedures
 1794  for any line or type of coverage for any specified county or
 1795  area if the board determines that such changes are justified due
 1796  to the voluntary market being sufficiently stable and
 1797  competitive in such area or for such line or type of coverage
 1798  and that consumers who, in good faith, are unable to obtain
 1799  insurance through the voluntary market through ordinary methods
 1800  continue to have access to coverage from the corporation. If
 1801  coverage is sought in connection with a real property transfer,
 1802  the requirements and procedures may not provide an effective
 1803  date of coverage later than the date of the closing of the
 1804  transfer as established by the transferor, the transferee, and,
 1805  if applicable, the lender.
 1806         13. Must provide that:
 1807         a. With respect to the coastal account, any assessable
 1808  insurer with a surplus as to policyholders of $25 million or
 1809  less writing 25 percent or more of its total countrywide
 1810  property insurance premiums in this state may petition the
 1811  office, within the first 90 days of each calendar year, to
 1812  qualify as a limited apportionment company. A regular assessment
 1813  levied by the corporation on a limited apportionment company for
 1814  a deficit incurred by the corporation for the coastal account
 1815  may be paid to the corporation on a monthly basis as the
 1816  assessments are collected by the limited apportionment company
 1817  from its insureds, but a limited apportionment company must
 1818  begin collecting the regular assessments not later than 90 days
 1819  after the regular assessments are levied by the corporation, and
 1820  the regular assessments must be paid in full within 15 months
 1821  after being levied by the corporation. A limited apportionment
 1822  company shall collect from its policyholders any emergency
 1823  assessment imposed under sub-subparagraph (b)3.e. The plan must
 1824  provide that, if the office determines that any regular
 1825  assessment will result in an impairment of the surplus of a
 1826  limited apportionment company, the office may direct that all or
 1827  part of such assessment be deferred as provided in subparagraph
 1828  (q)4. However, an emergency assessment to be collected from
 1829  policyholders under sub-subparagraph (b)3.e. may not be limited
 1830  or deferred; or
 1831         b. With respect to the Citizens account, if established by
 1832  the corporation pursuant to sub-subparagraph (b)2.b., any
 1833  assessable insurer with a surplus as to policyholders of $25
 1834  million or less and writing 25 percent or more of its total
 1835  countrywide property insurance premiums in this state may
 1836  petition the office, within the first 90 days of each calendar
 1837  year, to qualify as a limited apportionment company. A limited
 1838  apportionment company shall collect from its policyholders any
 1839  emergency assessment imposed under sub-subparagraph (b)5.c. An
 1840  emergency assessment to be collected from policyholders under
 1841  sub-subparagraph (b)5.c. may not be limited or deferred.
 1842         14. Must provide that the corporation appoint as its
 1843  licensed agents only those agents who throughout such
 1844  appointments also hold an appointment as defined in s. 626.015
 1845  by at least three insurers an insurer who are is authorized to
 1846  write and are is actually writing or renewing personal lines
 1847  residential property coverage, commercial residential property
 1848  coverage, or commercial nonresidential property coverage within
 1849  the state.
 1850         14.15. Must provide a premium payment plan option to its
 1851  policyholders which, at a minimum, allows for quarterly and
 1852  semiannual payment of premiums. A monthly payment plan may, but
 1853  is not required to, be offered.
 1854         15.16. Must limit coverage on mobile homes or manufactured
 1855  homes built before 1994 to actual cash value of the dwelling
 1856  rather than replacement costs of the dwelling.
 1857         16.17. Must provide coverage for manufactured or mobile
 1858  home dwellings. Such coverage must also include the following
 1859  attached structures:
 1860         a. Screened enclosures that are aluminum framed or screened
 1861  enclosures that are not covered by the same or substantially the
 1862  same materials as those of the primary dwelling;
 1863         b. Carports that are aluminum or carports that are not
 1864  covered by the same or substantially the same materials as those
 1865  of the primary dwelling; and
 1866         c. Patios that have a roof covering that is constructed of
 1867  materials that are not the same or substantially the same
 1868  materials as those of the primary dwelling.
 1869  
 1870  The corporation shall make available a policy for mobile homes
 1871  or manufactured homes for a minimum insured value of at least
 1872  $3,000.
 1873         17.18. May provide such limits of coverage as the board
 1874  determines, consistent with the requirements of this subsection.
 1875         18.19. May require commercial property to meet specified
 1876  hurricane mitigation construction features as a condition of
 1877  eligibility for coverage.
 1878         19.20. Must provide that new or renewal policies issued by
 1879  the corporation on or after January 1, 2012, which cover
 1880  sinkhole loss do not include coverage for any loss to
 1881  appurtenant structures, driveways, sidewalks, decks, or patios
 1882  that are directly or indirectly caused by sinkhole activity. The
 1883  corporation shall exclude such coverage using a notice of
 1884  coverage change, which may be included with the policy renewal,
 1885  and not by issuance of a notice of nonrenewal of the excluded
 1886  coverage upon renewal of the current policy.
 1887         20.a.21.a.As of January 1, 2012, unless the Citizens
 1888  account has been established pursuant to sub-subparagraph
 1889  (b)2.b., Must require that the agent obtain from an applicant
 1890  for coverage from the corporation an acknowledgment signed by
 1891  the applicant, which includes, at a minimum, the following
 1892  statement:
 1893  
 1894                ACKNOWLEDGMENT OF POTENTIAL SURCHARGE              
 1895                      AND ASSESSMENT LIABILITY:                    
 1896  
 1897         1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
 1898  CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
 1899  DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
 1900  MY POLICY COULD BE SUBJECT TO SURCHARGES AND ASSESSMENTS, WHICH
 1901  WILL BE DUE AND PAYABLE UPON RENEWAL, CANCELLATION, OR
 1902  TERMINATION OF THE POLICY, AND THAT THE SURCHARGES AND
 1903  ASSESSMENTS COULD BE AS HIGH AS 25 45 PERCENT OF MY PREMIUM, OR
 1904  A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA LEGISLATURE.
 1905         2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
 1906  SURCHARGE, WHICH COULD BE AS HIGH AS 25 45 PERCENT OF MY
 1907  PREMIUM, BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND
 1908  THAT TO BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY
 1909  TO OBTAIN PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR
 1910  RENEWING COVERAGE WITH CITIZENS. I UNDERSTAND THAT PRIVATE
 1911  MARKET INSURANCE RATES ARE REGULATED AND APPROVED BY THE STATE.
 1912         3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
 1913  ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
 1914  INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
 1915  FLORIDA LEGISLATURE.
 1916         4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
 1917  CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
 1918  STATE OF FLORIDA.
 1919  
 1920         b.The corporation must require, if it has established the
 1921  Citizens account pursuant to sub-subparagraph (b)2.b., that the
 1922  agent obtain from an applicant for coverage from the corporation
 1923  the following acknowledgment signed by the applicant, which
 1924  includes, at a minimum, the following statement:
 1925  
 1926                ACKNOWLEDGMENT OF POTENTIAL SURCHARGE              
 1927                      AND ASSESSMENT LIABILITY:                    
 1928  
 1929         1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
 1930  CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
 1931  DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
 1932  MY POLICY COULD BE SUBJECT TO SURCHARGES AND ASSESSMENTS, WHICH
 1933  WILL BE DUE AND PAYABLE UPON RENEWAL, CANCELLATION, OR
 1934  TERMINATION OF THE POLICY, AND THAT THE SURCHARGES AND
 1935  ASSESSMENTS COULD BE AS HIGH AS 25 PERCENT OF MY PREMIUM, OR A
 1936  DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA LEGISLATURE.
 1937         2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
 1938  SURCHARGE, WHICH COULD BE AS HIGH AS 15 PERCENT OF MY PREMIUM,
 1939  BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND THAT TO
 1940  BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN
 1941  PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR RENEWING COVERAGE
 1942  WITH CITIZENS. I UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES
 1943  ARE REGULATED AND APPROVED BY THE STATE.
 1944         3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
 1945  ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
 1946  INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
 1947  FLORIDA LEGISLATURE.
 1948         4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
 1949  CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
 1950  STATE OF FLORIDA.
 1951  
 1952         b.c. The corporation shall maintain, in electronic format
 1953  or otherwise, a copy of the applicant’s signed acknowledgment
 1954  and provide a copy of the statement to the policyholder as part
 1955  of the first renewal after the effective date of sub
 1956  subparagraph a. or sub-subparagraph b., as applicable.
 1957         c.d. The signed acknowledgment form creates a conclusive
 1958  presumption that the policyholder understood and accepted his or
 1959  her potential surcharge and assessment liability as a
 1960  policyholder of the corporation.
 1961         (e) The corporation is subject to s. 287.057 for the
 1962  purchase of commodities and contractual services except as
 1963  otherwise provided in this paragraph. Services provided by
 1964  tradepersons or technical experts to assist a licensed adjuster
 1965  in the evaluation of individual claims are not subject to the
 1966  procurement requirements of this section. Additionally, the
 1967  procurement of financial services providers and underwriters
 1968  must be made pursuant to s. 627.3513. Contracts for goods or
 1969  services valued at or more than $100,000 are subject to approval
 1970  by the board.
 1971         1. The corporation is an agency for purposes of s. 287.057,
 1972  except that, for purposes of s. 287.057(24), the corporation is
 1973  an eligible user.
 1974         a. The authority of the Department of Management Services
 1975  and the Chief Financial Officer under s. 287.057 extends to the
 1976  corporation as if the corporation were an agency.
 1977         b. The executive director of the corporation is the agency
 1978  head under s. 287.057, except for resolution of bid protests for
 1979  which the board would serve as the agency head. The executive
 1980  director of the corporation may assign or appoint a designee to
 1981  act on his or her behalf.
 1982         2. The corporation must provide notice of a decision or
 1983  intended decision concerning a solicitation, contract award, or
 1984  exceptional purchase by electronic posting. Such notice must
 1985  contain the following statement: “Failure to file a protest
 1986  within the time prescribed in this section constitutes a waiver
 1987  of proceedings.”
 1988         a. A person adversely affected by the corporation’s
 1989  decision or intended decision to award a contract pursuant to s.
 1990  287.057(1) or (3)(c) who elects to challenge the decision must
 1991  file a written notice of protest with the executive director of
 1992  the corporation within 72 hours after the corporation posts a
 1993  notice of its decision or intended decision. For a protest of
 1994  the terms, conditions, and specifications contained in a
 1995  solicitation, including provisions governing the methods for
 1996  ranking bids, proposals, replies, awarding contracts, reserving
 1997  rights of further negotiation, or modifying or amending any
 1998  contract, the notice of protest must be filed in writing within
 1999  72 hours after posting the solicitation. Saturdays, Sundays, and
 2000  state holidays are excluded in the computation of the 72-hour
 2001  time period.
 2002         b. A formal written protest must be filed within 10 days
 2003  after the date the notice of protest is filed. The formal
 2004  written protest must state with particularity the facts and law
 2005  upon which the protest is based. Upon receipt of a formal
 2006  written protest that has been timely filed, the corporation must
 2007  stop the solicitation or contract award process until the
 2008  subject of the protest is resolved by final board action unless
 2009  the executive director sets forth in writing particular facts
 2010  and circumstances that require the continuance of the
 2011  solicitation or contract award process without delay in order to
 2012  avoid an immediate and serious danger to the public health,
 2013  safety, or welfare.
 2014         (I) The corporation must provide an opportunity to resolve
 2015  the protest by mutual agreement between the parties within 7
 2016  business days after receipt of the formal written protest.
 2017         (II) If the subject of a protest is not resolved by mutual
 2018  agreement within 7 business days, the corporation’s board must
 2019  transmit the protest to the Division of Administrative Hearings
 2020  and contract with the division to conduct a hearing to determine
 2021  the merits of the protest and to issue a recommended order. The
 2022  contract must provide for the corporation to reimburse the
 2023  division for any costs incurred by the division for court
 2024  reporters, transcript preparation, travel, facility rental, and
 2025  other customary hearing costs in the manner set forth in s.
 2026  120.65(9). The division has jurisdiction to determine the facts
 2027  and law concerning the protest and to issue a recommended order.
 2028  The division’s rules and procedures apply to these proceedings;
 2029  the division’s applicable bond requirements do not apply. The
 2030  protest must be heard by the division at a publicly noticed
 2031  meeting in accordance with procedures established by the
 2032  division.
 2033         c. In a protest of an invitation-to-bid or request-for
 2034  proposals procurement, submissions made after the bid or
 2035  proposal opening which amend or supplement the bid or proposal
 2036  may not be considered. In protesting an invitation-to-negotiate
 2037  procurement, submissions made after the corporation announces
 2038  its intent to award a contract, reject all replies, or withdraw
 2039  the solicitation that amends or supplements the reply may not be
 2040  considered. Unless otherwise provided by law, the burden of
 2041  proof rests with the party protesting the corporation’s action.
 2042  In a competitive-procurement protest, other than a rejection of
 2043  all bids, proposals, or replies, the administrative law judge
 2044  must conduct a de novo proceeding to determine whether the
 2045  corporation’s proposed action is contrary to the corporation’s
 2046  governing statutes, the corporation’s rules or policies, or the
 2047  solicitation specifications. The standard of proof for the
 2048  proceeding is whether the corporation’s action was clearly
 2049  erroneous, contrary to competition, arbitrary, or capricious. In
 2050  any bid-protest proceeding contesting an intended corporation
 2051  action to reject all bids, proposals, or replies, the standard
 2052  of review by the board is whether the corporation’s intended
 2053  action is illegal, arbitrary, dishonest, or fraudulent.
 2054         d. Failure to file a notice of protest or failure to file a
 2055  formal written protest constitutes a waiver of proceedings.
 2056         3. The board, acting as agency head or his or her designee,
 2057  shall consider the recommended order of an administrative law
 2058  judge in a public meeting and take final action on the protest.
 2059  Any further legal remedy lies with the First District Court of
 2060  Appeal.
 2061         (n)1. Rates for coverage provided by the corporation must
 2062  be actuarially sound pursuant to s. 627.062 and not competitive
 2063  with approved rates charged in the admitted voluntary market so
 2064  that the corporation functions as a residual market mechanism to
 2065  provide insurance only when insurance cannot be procured in the
 2066  voluntary market, except as otherwise provided in this
 2067  paragraph. The office shall provide the corporation such
 2068  information as would be necessary to determine whether rates are
 2069  competitive.
 2070  
 2071  The corporation shall file its recommended rates with the office
 2072  at least annually. The corporation shall provide any additional
 2073  information regarding the rates which the office requires. The
 2074  office shall consider the recommendations of the board and issue
 2075  a final order establishing the rates for the corporation within
 2076  45 days after the recommended rates are filed. The corporation
 2077  may not pursue an administrative challenge or judicial review of
 2078  the final order of the office.
 2079         2. In addition to the rates otherwise determined pursuant
 2080  to this paragraph, the corporation shall impose and collect an
 2081  amount equal to the premium tax provided in s. 624.509 to
 2082  augment the financial resources of the corporation.
 2083         3. After the public hurricane loss-projection model under
 2084  s. 627.06281 has been found to be accurate and reliable by the
 2085  Florida Commission on Hurricane Loss Projection Methodology, the
 2086  model shall be considered when establishing the windstorm
 2087  portion of the corporation’s rates. The corporation may use the
 2088  public model results in combination with the results of private
 2089  models to calculate rates for the windstorm portion of the
 2090  corporation’s rates. This subparagraph does not require or allow
 2091  the corporation to adopt rates lower than the rates otherwise
 2092  required or allowed by this paragraph.
 2093         4. The corporation must make a recommended actuarially
 2094  sound rate filing for each personal and commercial line of
 2095  business it writes.
 2096         5. Notwithstanding the board’s recommended rates and the
 2097  office’s final order regarding the corporation’s filed rates
 2098  under subparagraph 1., the corporation shall annually implement
 2099  a rate increase which, except for sinkhole coverage, does not
 2100  exceed the following for any single policy issued by the
 2101  corporation, excluding coverage changes and surcharges:
 2102         a. Twelve percent for 2023.
 2103         b. Thirteen percent for 2024.
 2104         b.c. Fourteen percent for 2025.
 2105         c.d. Fifteen percent for 2026 and all subsequent years.
 2106         6. The corporation may also implement an increase to
 2107  reflect the effect on the corporation of the cash buildup factor
 2108  pursuant to s. 215.555(5)(b).
 2109         7. The corporation’s implementation of rates as prescribed
 2110  in subparagraphs 5. and 8. shall cease for any line of business
 2111  written by the corporation upon the corporation’s implementation
 2112  of actuarially sound rates. Thereafter, the corporation shall
 2113  annually make a recommended actuarially sound rate filing that
 2114  is not competitive with approved rates in the admitted voluntary
 2115  market for each commercial and personal line of business the
 2116  corporation writes.
 2117         8. The following new or renewal personal lines policies
 2118  written on or after November 1, 2023, are not subject to the
 2119  rate increase limitations in subparagraph 5., but may not be
 2120  charged more than 50 percent above, and may not be charged nor
 2121  less than, the prior year’s established rate for the
 2122  corporation:
 2123         a. Policies that do not cover a primary residence;
 2124         b. New policies under which the coverage for the insured
 2125  risk, before the date of application with the corporation, was
 2126  last provided by an insurer determined by the office to be
 2127  unsound or an insurer placed in receivership under chapter 631;
 2128  or
 2129         c. Subsequent renewals of those policies, including the new
 2130  policies in sub-subparagraph b., under which the coverage for
 2131  the insured risk, before the date of application with the
 2132  corporation, was last provided by an insurer determined by the
 2133  office to be unsound or an insurer placed in receivership under
 2134  chapter 631.
 2135         9. As used in this paragraph, the term “primary residence”
 2136  means the dwelling that is the policyholder’s primary home or is
 2137  a rental property that is the primary home of the tenant, and
 2138  which the policyholder or tenant occupies for more than 9 months
 2139  of each year.
 2140         (o) If coverage in an account, or the Citizens account if
 2141  established by the corporation, is deactivated pursuant to
 2142  paragraph (p), coverage through the corporation shall be
 2143  reactivated by order of the office only under one of the
 2144  following circumstances:
 2145         1. If the market assistance plan receives a minimum of 100
 2146  applications for coverage within a 3-month period, or 200
 2147  applications for coverage within a 1-year period or less for
 2148  residential coverage, unless the market assistance plan provides
 2149  a quotation from authorized admitted carriers at their approved
 2150  filed rates for at least 90 percent of such applicants. Any
 2151  market assistance plan application that is rejected because an
 2152  individual risk is so hazardous as to be uninsurable using the
 2153  criteria specified in subparagraph (c)8. shall not be included
 2154  in the minimum percentage calculation provided herein. In the
 2155  event that there is a legal or administrative challenge to a
 2156  determination by the office that the conditions of this
 2157  subparagraph have been met for eligibility for coverage in the
 2158  corporation, any eligible risk may obtain coverage during the
 2159  pendency of such challenge.
 2160         2. In response to a state of emergency declared by the
 2161  Governor under s. 252.36, the office may activate coverage by
 2162  order for the period of the emergency upon a finding by the
 2163  office that the emergency significantly affects the availability
 2164  of residential property insurance.
 2165         (p)1. The corporation shall file with the office quarterly
 2166  statements of financial condition, an annual statement of
 2167  financial condition, and audited financial statements in the
 2168  manner prescribed by law. In addition, the corporation shall
 2169  report to the office monthly on the types, premium, exposure,
 2170  and distribution by county of its policies in force, and shall
 2171  submit other reports as the office requires to carry out its
 2172  oversight of the corporation.
 2173         2. The activities of the corporation shall be reviewed at
 2174  least annually by the office to determine whether coverage shall
 2175  be deactivated in an account, or in the Citizens account if
 2176  established by the corporation, on the basis that the conditions
 2177  giving rise to its activation no longer exist.
 2178         (q)1. The corporation shall certify to the office its needs
 2179  for annual assessments as to a particular calendar year, and for
 2180  any interim assessments that it deems to be necessary to sustain
 2181  operations as to a particular year pending the receipt of annual
 2182  assessments. Upon verification, the office shall approve such
 2183  certification, and the corporation shall levy such annual or
 2184  interim assessments. Such assessments shall be prorated, if
 2185  authority to levy exists, as provided in paragraph (b). The
 2186  corporation shall take all reasonable and prudent steps
 2187  necessary to collect the amount of assessments due from each
 2188  assessable insurer, including, if prudent, filing suit to
 2189  collect the assessments, and the office may provide such
 2190  assistance to the corporation it deems appropriate. If the
 2191  corporation is unable to collect an assessment from any
 2192  assessable insurer, the uncollected assessments shall be levied
 2193  as an additional assessment against the assessable insurers and
 2194  any assessable insurer required to pay an additional assessment
 2195  as a result of such failure to pay shall have a cause of action
 2196  against such nonpaying assessable insurer. Assessments shall be
 2197  included as an appropriate factor in the making of rates. The
 2198  failure of a surplus lines agent to collect and remit any
 2199  regular or emergency assessment levied by the corporation is
 2200  considered to be a violation of s. 626.936 and subjects the
 2201  surplus lines agent to the penalties provided in that section.
 2202         2. The governing body of any unit of local government, any
 2203  residents of which are insured by the corporation, may issue
 2204  bonds as defined in s. 125.013 or s. 166.101 from time to time
 2205  to fund an assistance program, in conjunction with the
 2206  corporation, for the purpose of defraying deficits of the
 2207  corporation. In order to avoid needless and indiscriminate
 2208  proliferation, duplication, and fragmentation of such assistance
 2209  programs, any unit of local government, any residents of which
 2210  are insured by the corporation, may provide for the payment of
 2211  losses, regardless of whether or not the losses occurred within
 2212  or outside of the territorial jurisdiction of the local
 2213  government. Revenue bonds under this subparagraph may not be
 2214  issued until validated pursuant to chapter 75, unless a state of
 2215  emergency is declared by executive order or proclamation of the
 2216  Governor pursuant to s. 252.36 making such findings as are
 2217  necessary to determine that it is in the best interests of, and
 2218  necessary for, the protection of the public health, safety, and
 2219  general welfare of residents of this state and declaring it an
 2220  essential public purpose to permit certain municipalities or
 2221  counties to issue such bonds as will permit relief to claimants
 2222  and policyholders of the corporation. Any such unit of local
 2223  government may enter into such contracts with the corporation
 2224  and with any other entity created pursuant to this subsection as
 2225  are necessary to carry out this paragraph. Any bonds issued
 2226  under this subparagraph shall be payable from and secured by
 2227  moneys received by the corporation from emergency assessments
 2228  under sub-subparagraph (b)3.c. (b)3.e., and assigned and pledged
 2229  to or on behalf of the unit of local government for the benefit
 2230  of the holders of such bonds. The funds, credit, property, and
 2231  taxing power of the state or of the unit of local government
 2232  shall not be pledged for the payment of such bonds.
 2233         3.a. The corporation shall adopt one or more programs
 2234  subject to approval by the office for the reduction of both new
 2235  and renewal writings in the corporation. Beginning January 1,
 2236  2008, any program the corporation adopts for the payment of
 2237  bonuses to an insurer for each risk the insurer removes from the
 2238  corporation shall comply with s. 627.3511(2) and may not exceed
 2239  the amount referenced in s. 627.3511(2) for each risk removed.
 2240  The corporation may consider any prudent and not unfairly
 2241  discriminatory approach to reducing corporation writings, and
 2242  may adopt a credit against assessment liability or other
 2243  liability that provides an incentive for insurers to take risks
 2244  out of the corporation and to keep risks out of the corporation
 2245  by maintaining or increasing voluntary writings in counties or
 2246  areas in which corporation risks are highly concentrated and a
 2247  program to provide a formula under which an insurer voluntarily
 2248  taking risks out of the corporation by maintaining or increasing
 2249  voluntary writings will be relieved wholly or partially from
 2250  assessments under sub-subparagraph (b)3.a. In addition, in the
 2251  event policies are taken out by an authorized insurer that is an
 2252  eligible surplus lines insurer, such insurer’s assessable
 2253  insureds may also be relieved wholly or partially from
 2254  assessments. However, any “take-out bonus” or payment to an
 2255  insurer must be conditioned on the property being insured for at
 2256  least 5 years by the insurer, unless canceled or nonrenewed by
 2257  the policyholder. If the policy is canceled or nonrenewed by the
 2258  policyholder before the end of the 5-year period, the amount of
 2259  the take-out bonus must be prorated for the time period the
 2260  policy was insured. When the corporation enters into a
 2261  contractual agreement for a take-out plan, the producing agent
 2262  of record of the corporation policy is entitled to retain any
 2263  unearned commission on such policy, and the insurer shall
 2264  either:
 2265         (I) Pay to the producing agent of record of the policy, for
 2266  the first year, an amount which is the greater of the insurer’s
 2267  usual and customary commission for the type of policy written or
 2268  a policy fee equal to the usual and customary commission of the
 2269  corporation; or
 2270         (II) Offer to allow the producing agent of record of the
 2271  policy to continue servicing the policy for a period of not less
 2272  than 1 year and offer to pay the agent the insurer’s usual and
 2273  customary commission for the type of policy written. If the
 2274  producing agent is unwilling or unable to accept appointment by
 2275  the new insurer for any reason, including to the failure of such
 2276  agent to be licensed as a surplus lines agent, the new insurer
 2277  shall pay the agent in accordance with sub-sub-subparagraph (I).
 2278         b. Any credit or exemption from regular assessments adopted
 2279  under this subparagraph shall last no longer than the 3 years
 2280  following the cancellation or expiration of the policy by the
 2281  corporation. With the approval of the office, the board may
 2282  extend such credits for an additional year if the insurer
 2283  guarantees an additional year of renewability for all policies
 2284  removed from the corporation, or for 2 additional years if the
 2285  insurer guarantees 2 additional years of renewability for all
 2286  policies so removed.
 2287         c. There shall be no credit, limitation, exemption, or
 2288  deferment from emergency assessments to be collected from
 2289  policyholders pursuant to sub-subparagraph (b)3.c. sub
 2290  subparagraph (b)3.e. or sub-subparagraph (b)5.c.
 2291         4. The plan shall provide for the deferment, in whole or in
 2292  part, of the assessment of an assessable insurer, other than an
 2293  emergency assessment collected from policyholders pursuant to
 2294  sub-subparagraph (b)3.e. or sub-subparagraph (b)5.c., if the
 2295  office finds that payment of the assessment would endanger or
 2296  impair the solvency of the insurer. In the event an assessment
 2297  against an assessable insurer is deferred in whole or in part,
 2298  the amount by which such assessment is deferred may be assessed
 2299  against the other assessable insurers in a manner consistent
 2300  with the basis for assessments set forth in paragraph (b).
 2301         5. Effective July 1, 2007, in order to evaluate the costs
 2302  and benefits of approved take-out plans, if the corporation pays
 2303  a bonus or other payment to an insurer for an approved take-out
 2304  plan, it shall maintain a record of the address or such other
 2305  identifying information on the property or risk removed in order
 2306  to track if and when the property or risk is later insured by
 2307  the corporation.
 2308         5.6. Any policy taken out, assumed, or removed from the
 2309  corporation is, as of the effective date of the take-out,
 2310  assumption, or removal, direct insurance issued by the insurer
 2311  and not by the corporation, even if the corporation continues to
 2312  service the policies. This subparagraph applies to policies of
 2313  the corporation and not policies taken out, assumed, or removed
 2314  from any other entity.
 2315         6.7. For a policy taken out, assumed, or removed from the
 2316  corporation, the insurer may, for a period of no more than 3
 2317  years, continue to use any of the corporation’s policy forms or
 2318  endorsements that apply to the policy taken out, removed, or
 2319  assumed without obtaining approval from the office for use of
 2320  such policy form or endorsement.
 2321         (v)1. Effective July 1, 2002, policies of the Residential
 2322  Property and Casualty Joint Underwriting Association become
 2323  policies of the corporation. All obligations, rights, assets and
 2324  liabilities of the association, including bonds, note and debt
 2325  obligations, and the financing documents pertaining to them
 2326  become those of the corporation as of July 1, 2002. The
 2327  corporation is not required to issue endorsements or
 2328  certificates of assumption to insureds during the remaining term
 2329  of in-force transferred policies.
 2330         2. Effective July 1, 2002, policies of the Florida
 2331  Windstorm Underwriting Association are transferred to the
 2332  corporation and become policies of the corporation. All
 2333  obligations, rights, assets, and liabilities of the association,
 2334  including bonds, note and debt obligations, and the financing
 2335  documents pertaining to them are transferred to and assumed by
 2336  the corporation on July 1, 2002. The corporation is not required
 2337  to issue endorsements or certificates of assumption to insureds
 2338  during the remaining term of in-force transferred policies.
 2339         3. The Florida Windstorm Underwriting Association and the
 2340  Residential Property and Casualty Joint Underwriting Association
 2341  shall take all actions necessary to further evidence the
 2342  transfers and provide the documents and instruments of further
 2343  assurance as may reasonably be requested by the corporation for
 2344  that purpose. The corporation shall execute assumptions and
 2345  instruments as the trustees or other parties to the financing
 2346  documents of the Florida Windstorm Underwriting Association or
 2347  the Residential Property and Casualty Joint Underwriting
 2348  Association may reasonably request to further evidence the
 2349  transfers and assumptions, which transfers and assumptions,
 2350  however, are effective on the date provided under this paragraph
 2351  whether or not, and regardless of the date on which, the
 2352  assumptions or instruments are executed by the corporation.
 2353  Subject to the relevant financing documents pertaining to their
 2354  outstanding bonds, notes, indebtedness, or other financing
 2355  obligations, the moneys, investments, receivables, choses in
 2356  action, and other intangibles of the Florida Windstorm
 2357  Underwriting Association shall be credited to the coastal
 2358  account of the corporation, and those of the personal lines
 2359  residential coverage account and the commercial lines
 2360  residential coverage account of the Residential Property and
 2361  Casualty Joint Underwriting Association shall be credited to the
 2362  personal lines account and the commercial lines account,
 2363  respectively, of the corporation.
 2364         4. Effective July 1, 2002, a new applicant for property
 2365  insurance coverage who would otherwise have been eligible for
 2366  coverage in the Florida Windstorm Underwriting Association is
 2367  eligible for coverage from the corporation as provided in this
 2368  subsection.
 2369         5. The transfer of all policies, obligations, rights,
 2370  assets, and liabilities from the Florida Windstorm Underwriting
 2371  Association to the corporation and the renaming of the
 2372  Residential Property and Casualty Joint Underwriting Association
 2373  as the corporation does not affect the coverage with respect to
 2374  covered policies as defined in s. 215.555(2)(c) provided to
 2375  these entities by the Florida Hurricane Catastrophe Fund. The
 2376  coverage provided by the fund to the Florida Windstorm
 2377  Underwriting Association based on its exposures as of June 30,
 2378  2002, and each June 30 thereafter, unless the corporation has
 2379  established the Citizens account, shall be redesignated as
 2380  coverage for the coastal account of the corporation.
 2381  Notwithstanding any other provision of law, the coverage
 2382  provided by the fund to the Residential Property and Casualty
 2383  Joint Underwriting Association based on its exposures as of June
 2384  30, 2002, and each June 30 thereafter, unless the corporation
 2385  has established the Citizens account, shall be transferred to
 2386  the personal lines account and the commercial lines account of
 2387  the corporation. Notwithstanding any other provision of law, the
 2388  coastal account, unless the corporation has established the
 2389  Citizens account, shall be treated, for all Florida Hurricane
 2390  Catastrophe Fund purposes, as if it were a separate
 2391  participating insurer with its own exposures, reimbursement
 2392  premium, and loss reimbursement. Likewise, the personal lines
 2393  and commercial lines accounts, unless the corporation has
 2394  established the Citizens account, shall be viewed together, for
 2395  all fund purposes, as if the two accounts were one and represent
 2396  a single, separate participating insurer with its own exposures,
 2397  reimbursement premium, and loss reimbursement. The coverage
 2398  provided by the fund to the corporation shall constitute and
 2399  operate as a full transfer of coverage from the Florida
 2400  Windstorm Underwriting Association and Residential Property and
 2401  Casualty Joint Underwriting Association to the corporation.
 2402         (w) Notwithstanding any other provision of law:
 2403         1. The pledge or sale of, the lien upon, and the security
 2404  interest in any rights, revenues, or other assets of the
 2405  corporation created or purported to be created pursuant to any
 2406  financing documents to secure any bonds or other indebtedness of
 2407  the corporation shall be and remain valid and enforceable,
 2408  notwithstanding the commencement of and during the continuation
 2409  of, and after, any rehabilitation, insolvency, liquidation,
 2410  bankruptcy, receivership, conservatorship, reorganization, or
 2411  similar proceeding against the corporation under the laws of
 2412  this state.
 2413         2. The proceeding does not relieve the corporation of its
 2414  obligation, or otherwise affect its ability to perform its
 2415  obligation, to continue to collect, or levy and collect,
 2416  assessments, policyholder surcharges or other surcharges under
 2417  sub-subparagraph (b)3.j., or any other rights, revenues, or
 2418  other assets of the corporation pledged pursuant to any
 2419  financing documents.
 2420         3. Each such pledge or sale of, lien upon, and security
 2421  interest in, including the priority of such pledge, lien, or
 2422  security interest, any such assessments, policyholder surcharges
 2423  or other surcharges, or other rights, revenues, or other assets
 2424  which are collected, or levied and collected, after the
 2425  commencement of and during the pendency of, or after, any such
 2426  proceeding shall continue unaffected by such proceeding. As used
 2427  in this subsection, the term “financing documents” means any
 2428  agreement or agreements, instrument or instruments, or other
 2429  document or documents now existing or hereafter created
 2430  evidencing any bonds or other indebtedness of the corporation or
 2431  pursuant to which any such bonds or other indebtedness has been
 2432  or may be issued and pursuant to which any rights, revenues, or
 2433  other assets of the corporation are pledged or sold to secure
 2434  the repayment of such bonds or indebtedness, together with the
 2435  payment of interest on such bonds or such indebtedness, or the
 2436  payment of any other obligation or financial product, as defined
 2437  in the plan of operation of the corporation related to such
 2438  bonds or indebtedness.
 2439         4. Any such pledge or sale of assessments, revenues,
 2440  contract rights, or other rights or assets of the corporation
 2441  shall constitute a lien and security interest, or sale, as the
 2442  case may be, that is immediately effective and attaches to such
 2443  assessments, revenues, or contract rights or other rights or
 2444  assets, whether or not imposed or collected at the time the
 2445  pledge or sale is made. Any such pledge or sale is effective,
 2446  valid, binding, and enforceable against the corporation or other
 2447  entity making such pledge or sale, and valid and binding against
 2448  and superior to any competing claims or obligations owed to any
 2449  other person or entity, including policyholders in this state,
 2450  asserting rights in any such assessments, revenues, or contract
 2451  rights or other rights or assets to the extent set forth in and
 2452  in accordance with the terms of the pledge or sale contained in
 2453  the applicable financing documents, whether or not any such
 2454  person or entity has notice of such pledge or sale and without
 2455  the need for any physical delivery, recordation, filing, or
 2456  other action.
 2457         5. As long as the corporation has any bonds outstanding,
 2458  the corporation may not file a voluntary petition under chapter
 2459  9 of the federal Bankruptcy Code or such corresponding chapter
 2460  or sections as may be in effect, from time to time, and a public
 2461  officer or any organization, entity, or other person may not
 2462  authorize the corporation to be or become a debtor under chapter
 2463  9 of the federal Bankruptcy Code or such corresponding chapter
 2464  or sections as may be in effect, from time to time, during any
 2465  such period.
 2466         6. If ordered by a court of competent jurisdiction, the
 2467  corporation may assume policies or otherwise provide coverage
 2468  for policyholders of an insurer placed in liquidation under
 2469  chapter 631, under such forms, rates, terms, and conditions as
 2470  the corporation deems appropriate, subject to approval by the
 2471  office.
 2472         (x)1. The following records of the corporation are
 2473  confidential and exempt from the provisions of s. 119.07(1) and
 2474  s. 24(a), Art. I of the State Constitution:
 2475         a. Underwriting files, except that a policyholder or an
 2476  applicant shall have access to his or her own underwriting
 2477  files. Confidential and exempt underwriting file records may
 2478  also be released to other governmental agencies upon written
 2479  request and demonstration of need; such records held by the
 2480  receiving agency remain confidential and exempt as provided
 2481  herein.
 2482         b. Claims files, until termination of all litigation and
 2483  settlement of all claims arising out of the same incident,
 2484  although portions of the claims files may remain exempt, as
 2485  otherwise provided by law. Confidential and exempt claims file
 2486  records may be released to other governmental agencies upon
 2487  written request and demonstration of need; such records held by
 2488  the receiving agency remain confidential and exempt as provided
 2489  herein.
 2490         c. Records obtained or generated by an internal auditor
 2491  pursuant to a routine audit, until the audit is completed, or if
 2492  the audit is conducted as part of an investigation, until the
 2493  investigation is closed or ceases to be active. An investigation
 2494  is considered “active” while the investigation is being
 2495  conducted with a reasonable, good faith belief that it could
 2496  lead to the filing of administrative, civil, or criminal
 2497  proceedings.
 2498         d. Matters reasonably encompassed in privileged attorney
 2499  client communications.
 2500         e. Proprietary information licensed to the corporation
 2501  under contract and the contract provides for the confidentiality
 2502  of such proprietary information.
 2503         f. All information relating to the medical condition or
 2504  medical status of a corporation employee which is not relevant
 2505  to the employee’s capacity to perform his or her duties, except
 2506  as otherwise provided in this paragraph. Information that is
 2507  exempt shall include, but is not limited to, information
 2508  relating to workers’ compensation, insurance benefits, and
 2509  retirement or disability benefits.
 2510         g. Upon an employee’s entrance into the employee assistance
 2511  program, a program to assist any employee who has a behavioral
 2512  or medical disorder, substance abuse problem, or emotional
 2513  difficulty that affects the employee’s job performance, all
 2514  records relative to that participation shall be confidential and
 2515  exempt from the provisions of s. 119.07(1) and s. 24(a), Art. I
 2516  of the State Constitution, except as otherwise provided in s.
 2517  112.0455(11).
 2518         h. Information relating to negotiations for financing,
 2519  reinsurance, depopulation, or contractual services, until the
 2520  conclusion of the negotiations.
 2521         i. Minutes of closed meetings regarding underwriting files,
 2522  and minutes of closed meetings regarding an open claims file
 2523  until termination of all litigation and settlement of all claims
 2524  with regard to that claim, except that information otherwise
 2525  confidential or exempt by law shall be redacted.
 2526         2. If an authorized insurer is considering underwriting a
 2527  risk insured by the corporation, relevant underwriting files and
 2528  confidential claims files may be released to the insurer
 2529  provided the insurer agrees in writing, notarized and under
 2530  oath, to maintain the confidentiality of such files. If a file
 2531  is transferred to an insurer, that file is no longer a public
 2532  record because it is not held by an agency subject to the
 2533  provisions of the public records law. Underwriting files and
 2534  confidential claims files may also be released to staff and the
 2535  board of governors of the market assistance plan established
 2536  pursuant to s. 627.3515, who must retain the confidentiality of
 2537  such files, except such files may be released to authorized
 2538  insurers that are considering assuming the risks to which the
 2539  files apply, provided the insurer agrees in writing, notarized
 2540  and under oath, to maintain the confidentiality of such files.
 2541  Finally, the corporation or the board or staff of the market
 2542  assistance plan may make the following information obtained from
 2543  underwriting files and confidential claims files available to an
 2544  entity that has obtained a permit to become an authorized
 2545  insurer, a reinsurer that may provide reinsurance under s.
 2546  624.610, a licensed reinsurance broker, a licensed rating
 2547  organization, a modeling company, a licensed surplus lines
 2548  agent, or a licensed general lines insurance agent: name,
 2549  address, and telephone number of the residential property owner
 2550  or insured; location of the risk; rating information; loss
 2551  history; and policy type. The receiving person must retain the
 2552  confidentiality of the information received and may use the
 2553  information only for the purposes of developing a take-out plan
 2554  or a rating plan to be submitted to the office for approval or
 2555  otherwise analyzing the underwriting of a risk or risks insured
 2556  by the corporation on behalf of the private insurance market. A
 2557  licensed surplus lines agent licensed general lines insurance
 2558  agent may not use such information for the direct solicitation
 2559  of policyholders.
 2560         3. A policyholder who has filed suit against the
 2561  corporation has the right to discover the contents of his or her
 2562  own claims file to the same extent that discovery of such
 2563  contents would be available from a private insurer in litigation
 2564  as provided by the Florida Rules of Civil Procedure, the Florida
 2565  Evidence Code, and other applicable law. Pursuant to subpoena, a
 2566  third party has the right to discover the contents of an
 2567  insured’s or applicant’s underwriting or claims file to the same
 2568  extent that discovery of such contents would be available from a
 2569  private insurer by subpoena as provided by the Florida Rules of
 2570  Civil Procedure, the Florida Evidence Code, and other applicable
 2571  law, and subject to any confidentiality protections requested by
 2572  the corporation and agreed to by the seeking party or ordered by
 2573  the court. The corporation may release confidential underwriting
 2574  and claims file contents and information as it deems necessary
 2575  and appropriate to underwrite or service insurance policies and
 2576  claims, subject to any confidentiality protections deemed
 2577  necessary and appropriate by the corporation.
 2578         4. Portions of meetings of the corporation are exempt from
 2579  the provisions of s. 286.011 and s. 24(b), Art. I of the State
 2580  Constitution wherein confidential underwriting files or
 2581  confidential open claims files are discussed. All portions of
 2582  corporation meetings which are closed to the public shall be
 2583  recorded by a court reporter. The court reporter shall record
 2584  the times of commencement and termination of the meeting, all
 2585  discussion and proceedings, the names of all persons present at
 2586  any time, and the names of all persons speaking. No portion of
 2587  any closed meeting shall be off the record. Subject to the
 2588  provisions hereof and s. 119.07(1)(d)-(f), the court reporter’s
 2589  notes of any closed meeting shall be retained by the corporation
 2590  for a minimum of 5 years. A copy of the transcript, less any
 2591  exempt matters, of any closed meeting wherein claims are
 2592  discussed shall become public as to individual claims after
 2593  settlement of the claim.
 2594         (z) In enacting the provisions of this section, the
 2595  Legislature recognizes that both the Florida Windstorm
 2596  Underwriting Association and the Residential Property and
 2597  Casualty Joint Underwriting Association have entered into
 2598  financing arrangements that obligate each entity to service its
 2599  debts and maintain the capacity to repay funds secured under
 2600  these financing arrangements. It is the intent of the
 2601  Legislature that nothing in this section be construed to
 2602  compromise, diminish, or interfere with the rights of creditors
 2603  under such financing arrangements. It is further the intent of
 2604  the Legislature to preserve the obligations of the Florida
 2605  Windstorm Underwriting Association and Residential Property and
 2606  Casualty Joint Underwriting Association with regard to
 2607  outstanding financing arrangements, with such obligations
 2608  passing entirely and unchanged to the corporation and,
 2609  specifically, to the Citizens applicable account of the
 2610  corporation. So long as any bonds, notes, indebtedness, or other
 2611  financing obligations of the Florida Windstorm Underwriting
 2612  Association or the Residential Property and Casualty Joint
 2613  Underwriting Association are outstanding, under the terms of the
 2614  financing documents pertaining to them, the governing board of
 2615  the corporation shall have and shall exercise the authority to
 2616  levy, charge, collect, and receive all premiums, assessments,
 2617  surcharges, charges, revenues, and receipts that the
 2618  associations had authority to levy, charge, collect, or receive
 2619  under the provisions of subsection (2) and this subsection,
 2620  respectively, as they existed on January 1, 2002, to provide
 2621  moneys, without exercise of the authority provided by this
 2622  subsection, in at least the amounts, and by the times, as would
 2623  be provided under those former provisions of subsection (2) or
 2624  this subsection, respectively, so that the value, amount, and
 2625  collectability of any assets, revenues, or revenue source
 2626  pledged or committed to, or any lien thereon securing such
 2627  outstanding bonds, notes, indebtedness, or other financing
 2628  obligations will not be diminished, impaired, or adversely
 2629  affected by the amendments made by this act and to permit
 2630  compliance with all provisions of financing documents pertaining
 2631  to such bonds, notes, indebtedness, or other financing
 2632  obligations, or the security or credit enhancement for them, and
 2633  any reference in this subsection to bonds, notes, indebtedness,
 2634  financing obligations, or similar obligations, of the
 2635  corporation shall include like instruments or contracts of the
 2636  Florida Windstorm Underwriting Association and the Residential
 2637  Property and Casualty Joint Underwriting Association to the
 2638  extent not inconsistent with the provisions of the financing
 2639  documents pertaining to them.
 2640         (aa) Except as otherwise provided in this paragraph, the
 2641  corporation shall require the securing and maintaining of flood
 2642  insurance as a condition of coverage of a personal lines
 2643  residential risk. The insured or applicant must execute a form
 2644  approved by the office affirming that flood insurance is not
 2645  provided by the corporation and that if flood insurance is not
 2646  secured by the applicant or insured from an insurer other than
 2647  the corporation and in addition to coverage by the corporation,
 2648  the risk will not be eligible for coverage by the corporation.
 2649  The corporation may deny coverage of a personal lines
 2650  residential risk to an applicant or insured who refuses to
 2651  secure and maintain flood insurance. The requirement to purchase
 2652  flood insurance shall be implemented as follows:
 2653         1. Except as provided in subparagraphs 2. and 3., all
 2654  personal lines residential policyholders must have flood
 2655  coverage in place for policies effective on or after:
 2656         a. January 1, 2024, for property valued at a structure that
 2657  has a dwelling replacement cost of $600,000 or more.
 2658         b. January 1, 2025, for property valued at a structure that
 2659  has a dwelling replacement cost of $500,000 or more.
 2660         c. January 1, 2026, for property valued at a structure that
 2661  has a dwelling replacement cost of $400,000 or more.
 2662         d. January 1, 2027, for all other personal lines
 2663  residential property insured by the corporation.
 2664         2. All personal lines residential policyholders whose
 2665  property insured by the corporation is located within the
 2666  special flood hazard area defined by the Federal Emergency
 2667  Management Agency must have flood coverage in place:
 2668         a. At the time of initial policy issuance for all new
 2669  personal lines residential policies issued by the corporation on
 2670  or after April 1, 2023.
 2671         b. By the time of the policy renewal for all personal lines
 2672  residential policies renewing on or after July 1, 2023.
 2673         3. Policyholders are not required to purchase flood
 2674  insurance as a condition for maintaining the following policies
 2675  issued by the corporation:
 2676         a. Policies that do not provide coverage for the peril of
 2677  wind.
 2678         b. Policies that provide coverage under a condominium unit
 2679  owners form.
 2680  
 2681  The flood insurance required under this paragraph must meet, at
 2682  a minimum, the coverage available from the National Flood
 2683  Insurance Program or the requirements of subparagraphs s.
 2684  627.715(1)(a)1., 2., and 3.
 2685         (ii) The corporation shall revise the programs adopted
 2686  pursuant to sub-subparagraph (q)3.a. for personal lines
 2687  residential policies to maximize policyholder options and
 2688  encourage increased participation by insurers and agents. After
 2689  January 1, 2017, a policy may not be taken out of the
 2690  corporation unless the provisions of this paragraph are met.
 2691         1. The corporation must publish a periodic schedule of
 2692  cycles during which an insurer may identify, and notify the
 2693  corporation of, policies that the insurer is requesting to take
 2694  out. A request must include a description of the coverage
 2695  offered and an estimated premium and must be submitted to the
 2696  corporation in a form and manner prescribed by the corporation.
 2697         2. The corporation must maintain and make available to the
 2698  agent of record a consolidated list of all insurers requesting
 2699  to take out a policy. The list must include a description of the
 2700  coverage offered and the estimated premium for each take-out
 2701  request.
 2702         3. If a policyholder receives a take-out offer from an
 2703  authorized insurer, the risk is no longer eligible for coverage
 2704  with the corporation unless the premium for coverage from the
 2705  authorized insurer is more than 20 percent greater than the
 2706  renewal premium for comparable coverage from the corporation
 2707  pursuant to sub-subparagraph (c)5.c. This subparagraph applies
 2708  to take-out offers that are part of an application to
 2709  participate in depopulation submitted to the office on or after
 2710  January 1, 2023. However, notwithstanding any other provision of
 2711  law, this sub-subparagraph does not apply to a policy that does
 2712  not cover a primary residence.
 2713         4. The corporation must provide written notice to the
 2714  policyholder and the agent of record regarding all insurers
 2715  requesting to take out the policy. The notice must be in a
 2716  format prescribed by the corporation and include, for each take
 2717  out offer:
 2718         a. The amount of the estimated premium;
 2719         b. A description of the coverage; and
 2720         c. A comparison of the estimated premium and coverage
 2721  offered by the insurer to the estimated premium and coverage
 2722  provided by the corporation.
 2723         (nn)The corporation may share its claims data with the
 2724  National Insurance Crime Bureau, provided that the National
 2725  Insurance Crime Bureau agrees to maintain the confidentiality of
 2726  such documents as otherwise provided for in paragraph (x).
 2727         (7)TRADEMARKS, COPYRIGHTS, OR PATENTS.—Notwithstanding any
 2728  other law to the contrary, the corporation is authorized, in its
 2729  own name, to:
 2730         (a) Perform all things necessary to secure letters of
 2731  patent, copyrights, or trademarks on any work products and
 2732  enforce its rights therein.
 2733         (b) License, lease, assign, or otherwise give written
 2734  consent to any person, firm, or corporation for the manufacture
 2735  or use thereof, on a royalty basis or for such other
 2736  consideration as the corporation deems proper.
 2737         (c) Take any action necessary, including legal action, to
 2738  protect the same against improper or unlawful use or
 2739  infringement.
 2740         (d) Enforce the collection of any sums due the corporation
 2741  for the manufacture or use thereof by any other party.
 2742         (e) Sell any of the same and execute all instruments
 2743  necessary to consummate any such sale.
 2744         (f) Do all other acts necessary and proper for the
 2745  execution of powers and duties herein conferred upon the
 2746  corporation in order to administer this subsection.
 2747         Section 2.  Paragraphs (a), (b), and (c) of subsection (3)
 2748  and paragraphs (d), (e), and (f) of subsection (6) of section
 2749  627.3511, Florida Statutes, are amended to read:
 2750         627.3511 Depopulation of Citizens Property Insurance
 2751  Corporation.—
 2752         (3) EXEMPTION FROM DEFICIT ASSESSMENTS.—
 2753         (a) The calculation of an insurer’s assessment liability
 2754  under s. 627.351(6)(b)3.a. shall, for an insurer that in any
 2755  calendar year removes 50,000 or more risks from the Citizens
 2756  Property Insurance Corporation, either by issuance of a policy
 2757  upon expiration or cancellation of the corporation policy or by
 2758  assumption of the corporation’s obligations with respect to in
 2759  force policies, exclude such removed policies for the succeeding
 2760  3 years, as follows:
 2761         1. In the first year following removal of the risks, the
 2762  risks are excluded from the calculation to the extent of 100
 2763  percent.
 2764         2. In the second year following removal of the risks, the
 2765  risks are excluded from the calculation to the extent of 75
 2766  percent.
 2767         3. In the third year following removal of the risks, the
 2768  risks are excluded from the calculation to the extent of 50
 2769  percent.
 2770  
 2771  If the removal of risks is accomplished through assumption of
 2772  obligations with respect to in-force policies, the corporation
 2773  shall pay to the assuming insurer all unearned premium with
 2774  respect to such policies less any policy acquisition costs
 2775  agreed to by the corporation and assuming insurer. The term
 2776  “policy acquisition costs” is defined as costs of issuance of
 2777  the policy by the corporation which includes agent commissions,
 2778  servicing company fees, and premium tax. This paragraph does not
 2779  apply to an insurer that, at any time within 5 years before
 2780  removing the risks, had a market share in excess of 0.1 percent
 2781  of the statewide aggregate gross direct written premium for any
 2782  line of property insurance, or to an affiliate of such an
 2783  insurer. This paragraph does not apply unless either at least 40
 2784  percent of the risks removed from the corporation are located in
 2785  Miami-Dade, Broward, and Palm Beach Counties, or at least 30
 2786  percent of the risks removed from the corporation are located in
 2787  such counties and an additional 50 percent of the risks removed
 2788  from the corporation are located in other coastal counties.
 2789         (b) An insurer that first wrote personal lines residential
 2790  property coverage in this state on or after July 1, 1994, is
 2791  exempt from liability regular deficit assessments imposed
 2792  pursuant to s. 627.351(6)(b)3.a., but not emergency assessments
 2793  collected from policyholders pursuant to s. 627.351(6)(b)3.c. s.
 2794  627.351(6)(b)3.e., of the Citizens Property Insurance
 2795  Corporation until the earlier of the following:
 2796         1. The end of the calendar year in which it first wrote 0.5
 2797  percent or more of the statewide aggregate direct written
 2798  premium for any line of residential property coverage; or
 2799         2. December 31, 1997, or December 31 of the third year in
 2800  which it wrote such coverage in this state, whichever is later.
 2801         (c) Other than an insurer that is exempt under paragraph
 2802  (b), an insurer that in any calendar year increases its total
 2803  structure exposure subject to wind coverage by 25 percent or
 2804  more over its exposure for the preceding calendar year is, with
 2805  respect to that year, exempt from liability deficit assessments
 2806  imposed pursuant to s. 627.351(6)(b)3.a., but not from emergency
 2807  assessments collected from policyholders pursuant to s.
 2808  627.351(6)(b)3.c. s. 627.351(6)(b)3.e., of the Citizens Property
 2809  Insurance Corporation attributable to such increase in exposure.
 2810         (6) COMMERCIAL RESIDENTIAL TAKE-OUT PLANS.—
 2811         (d) The calculation of an insurer’s regular assessment
 2812  liability under s. 627.351(6)(b)3.a., but not emergency
 2813  assessments collected from policyholders pursuant to s.
 2814  627.351(6)(b)3.c. s. 627.351(6)(b)3.e., shall, with respect to
 2815  commercial residential policies removed from the corporation
 2816  under an approved take-out plan, exclude such removed policies
 2817  for the succeeding 3 years, as follows:
 2818         1. In the first year following removal of the policies, the
 2819  policies are excluded from the calculation to the extent of 100
 2820  percent.
 2821         2. In the second year following removal of the policies,
 2822  the policies are excluded from the calculation to the extent of
 2823  75 percent.
 2824         3. In the third year following removal of the policies, the
 2825  policies are excluded from the calculation to the extent of 50
 2826  percent.
 2827         (e) An insurer that first wrote commercial residential
 2828  property coverage in this state on or after June 1, 1996, is
 2829  exempt from liability regular assessments under s.
 2830  627.351(6)(b)3.a., but not from emergency assessments collected
 2831  from policyholders pursuant to s. 627.351(6)(b)3.c. s.
 2832  627.351(6)(b)3.e., with respect to commercial residential
 2833  policies until the earlier of:
 2834         1. The end of the calendar year in which such insurer first
 2835  wrote 0.5 percent or more of the statewide aggregate direct
 2836  written premium for commercial residential property coverage; or
 2837         2. December 31 of the third year in which such insurer
 2838  wrote commercial residential property coverage in this state.
 2839         (f) An insurer that is not otherwise exempt from liability
 2840  regular assessments under s. 627.351(6)(b)3.a. with respect to
 2841  commercial residential policies is, for any calendar year in
 2842  which such insurer increased its total commercial residential
 2843  hurricane exposure by 25 percent or more over its exposure for
 2844  the preceding calendar year, exempt from liability regular
 2845  assessments under s. 627.351(6)(b)3.a., but not emergency
 2846  assessments collected from policyholders pursuant to s.
 2847  627.351(6)(b)3.c. s. 627.351(6)(b)3.e., attributable to such
 2848  increased exposure.
 2849         Section 3. Subsections (5), (6), and (7) of section
 2850  627.3518, Florida Statutes, are amended to read:
 2851         627.3518 Citizens Property Insurance Corporation
 2852  policyholder eligibility clearinghouse program.—The purpose of
 2853  this section is to provide a framework for the corporation to
 2854  implement a clearinghouse program by January 1, 2014.
 2855         (5) Notwithstanding s. 627.3517, any applicant for new
 2856  coverage from the corporation is not eligible for coverage from
 2857  the corporation if provided an offer of coverage from an
 2858  authorized insurer through the program at a premium that is at
 2859  or below the eligibility threshold for applicants for new
 2860  coverage established in s. 627.351(6)(c)5.a. Whenever an offer
 2861  of coverage for a personal lines risk is received for a
 2862  policyholder of the corporation at renewal from an authorized
 2863  insurer through the program which is at or below the eligibility
 2864  threshold for policyholders of the corporation established in s.
 2865  627.351(6)(c)5.a., the risk is not eligible for coverage with
 2866  the corporation. In the event an offer of coverage for a new
 2867  applicant is received from an authorized insurer through the
 2868  program, and the premium offered exceeds the eligibility
 2869  threshold for applicants for new coverage established in s.
 2870  627.351(6)(c)5.a., the applicant or insured may elect to accept
 2871  such coverage, or may elect to accept or continue coverage with
 2872  the corporation. In the event an offer of coverage for a
 2873  personal lines risk is received from an authorized insurer at
 2874  renewal through the program, and the premium offered exceeds the
 2875  eligibility threshold for policyholders of the corporation
 2876  established in s. 627.351(6)(c)5.a., the insured may elect to
 2877  accept such coverage, or may elect to accept or continue
 2878  coverage with the corporation. Section 627.351(6)(c)5.a.(I) does
 2879  not apply to an offer of coverage from an authorized insurer
 2880  obtained through the program. However, notwithstanding any other
 2881  provision of law, this subsection does not apply to a policy
 2882  that does not cover a primary residence. As used in this
 2883  subsection, the term “primary residence” has the same mean as in
 2884  sub-subparagraph s. 627.351 (6)(c)2.a.
 2885         (6) Independent insurance agents submitting new
 2886  applications for coverage or that are the agent of record on a
 2887  renewal policy submitted to the program:
 2888         (a) Are granted and must maintain ownership and the
 2889  exclusive use of expirations, records, or other written or
 2890  electronic information directly related to such applications or
 2891  renewals written through the corporation or through an insurer
 2892  participating in the program, notwithstanding s.
 2893  627.351(6)(c)5.a.(I)(B) and (II)(B). Such ownership is granted
 2894  for as long as the insured remains with the agency or until sold
 2895  or surrendered in writing by the agent. Contracts with the
 2896  corporation or required by the corporation must not amend,
 2897  modify, interfere with, or limit such rights of ownership. Such
 2898  expirations, records, or other written or electronic information
 2899  may be used to review an application, issue a policy, or for any
 2900  other purpose necessary for placing such business through the
 2901  program.
 2902         (b) May not be required to be appointed by any insurer
 2903  participating in the program for policies written solely through
 2904  the program, notwithstanding the provisions of s. 626.112.
 2905         (c) May accept an appointment from any insurer
 2906  participating in the program.
 2907         (d) May enter into either a standard or limited agency
 2908  agreement with the insurer, at the insurer’s option.
 2909  
 2910  Applicants ineligible for coverage in accordance with subsection
 2911  (5) remain ineligible if their independent agent is unwilling or
 2912  unable for any reason, including the failure of such agent to be
 2913  licensed as a surplus lines agent, to enter into a standard or
 2914  limited agency agreement with an insurer participating in the
 2915  program.
 2916         (7) Exclusive agents submitting new applications for
 2917  coverage or that are the agent of record on a renewal policy
 2918  submitted to the program:
 2919         (a) Must maintain ownership and the exclusive use of
 2920  expirations, records, or other written or electronic information
 2921  directly related to such applications or renewals written
 2922  through the corporation or through an insurer participating in
 2923  the program, notwithstanding s. 627.351(6)(c)5.a.(I)(B) and
 2924  (II)(B). Contracts with the corporation or required by the
 2925  corporation must not amend, modify, interfere with, or limit
 2926  such rights of ownership. Such expirations, records, or other
 2927  written or electronic information may be used to review an
 2928  application, issue a policy, or for any other purpose necessary
 2929  for placing such business through the program.
 2930         (b) May not be required to be appointed by any insurer
 2931  participating in the program for policies written solely through
 2932  the program, notwithstanding the provisions of s. 626.112.
 2933         (c) Must only facilitate the placement of an offer of
 2934  coverage from an insurer whose limited servicing agreement is
 2935  approved by that exclusive agent’s exclusive insurer.
 2936         (d) May enter into a limited servicing agreement with the
 2937  insurer making an offer of coverage, and only after the
 2938  exclusive agent’s insurer has approved the limited servicing
 2939  agreement terms. The exclusive agent’s insurer must approve a
 2940  limited service agreement for the program for any insurer for
 2941  which it has approved a service agreement for other purposes.
 2942  
 2943  Applicants ineligible for coverage in accordance with subsection
 2944  (5) remain ineligible if their exclusive agent is unwilling or
 2945  unable for any reason, including the failure of such agent to be
 2946  licensed as a surplus lines agent, to enter into a standard or
 2947  limited agency agreement with an insurer making an offer of
 2948  coverage to that applicant.
 2949         Section 4. This act shall take effect July 1, 2024.