Florida Senate - 2024 CS for SB 1716
By the Committee on Banking and Insurance; and Senator Boyd
597-02636-24 20241716c1
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, liabilities, 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 the
20 terms “approved surplus lines insurer” and “primary
21 residence”; providing applicability of certain
22 provisions relating to personal lines residential
23 risks coverage by the corporation; revising
24 eligibility for commercial lines residential risks
25 coverage by the corporation; providing that commercial
26 lines residential risks are not eligible for coverage
27 by the corporation under certain circumstances;
28 providing that comparisons of comparable coverages
29 under certain personal lines residential risks and
30 commercial lines residential risks do not apply to
31 policies that do not cover primary residences;
32 revising the corporation’s plan of operation; revising
33 the required statements from applicants for coverage;
34 revising the duties of the executive director of the
35 corporation; authorizing the executive director to
36 assign and appoint designees; deleting a applicability
37 provision relating to bond requirements; providing
38 circumstances under which coverage rates are
39 considered not competitive; revising the duties of the
40 Office of Insurance Regulation relating to coverage
41 rates; authorizing the corporation to pursue
42 administrative challenges relating to coverage rates;
43 revising requirements for coverage rate increases and
44 coverage rates; authorizing assessed insureds of
45 certain insurers to be relieved from assessments under
46 certain circumstances; deleting provisions relating to
47 certain insurer assessment deferments; deleting
48 provisions relating to the intangibles of and coverage
49 by the Florida Windstorm Underwriting Association and
50 the corporation coastal account; authorizing the
51 corporation and certain persons to make specified
52 information obtained from underwriting files and
53 confidential claims files available to licensed
54 surplus lines agents; prohibiting such agents from
55 using such information for specified purposes;
56 providing applicability of provisions relating to
57 take-out offers that are part of applications to
58 participate in depopulation; authorizing the
59 corporation to share its claims data with a specified
60 entity; deleting provisions relating to resolutions of
61 disputes and to determinations of risks ineligible for
62 coverage; amending s. 627.3511, F.S.; conforming
63 provisions to changes made by the act; conforming
64 cross-references; amending s. 627.3518, F.S.; revising
65 eligibility requirements for applicants for new
66 coverage; defining the term “primary residence”;
67 providing an effective date.
68
69 Be It Enacted by the Legislature of the State of Florida:
70
71 Section 1. Present subsection (7) of section 627.351,
72 Florida Statutes, is redesignated as subsection (8), a new
73 subsection (7) is added to that section, paragraph (nn) is added
74 to subsection (6) of that section, and paragraph (b) of
75 subsection (2) and paragraphs (a), (b), (c), (e), (n) through
76 (q), (v), (w), (x), (z), and (ii) of subsection (6) of that
77 section are amended, to read:
78 627.351 Insurance risk apportionment plans.—
79 (2) WINDSTORM INSURANCE RISK APPORTIONMENT.—
80 (b) The department shall require all insurers holding a
81 certificate of authority to transact property insurance on a
82 direct basis in this state, other than joint underwriting
83 associations and other entities formed pursuant to this section,
84 to provide windstorm coverage to applicants from areas
85 determined to be eligible pursuant to paragraph (c) who in good
86 faith are entitled to, but are unable to procure, such coverage
87 through ordinary means; or it shall adopt a reasonable plan or
88 plans for the equitable apportionment or sharing among such
89 insurers of windstorm coverage, which may include formation of
90 an association for this purpose. As used in this subsection, the
91 term “property insurance” means insurance on real or personal
92 property, as defined in s. 624.604, including insurance for
93 fire, industrial fire, allied lines, farmowners multiperil,
94 homeowners multiperil, commercial multiperil, and mobile homes,
95 and including liability coverages on all such insurance, but
96 excluding inland marine as defined in s. 624.607(3) and
97 excluding vehicle insurance as defined in s. 624.605(1)(a) other
98 than insurance on mobile homes used as permanent dwellings. The
99 department shall adopt rules that provide a formula for the
100 recovery and repayment of any deferred assessments.
101 1. For the purpose of this section, properties eligible for
102 such windstorm coverage are defined as dwellings, buildings, and
103 other structures, including mobile homes which are used as
104 dwellings and which are tied down in compliance with mobile home
105 tie-down requirements prescribed by the Department of Highway
106 Safety and Motor Vehicles pursuant to s. 320.8325, and the
107 contents of all such properties. An applicant or policyholder is
108 eligible for coverage only if an offer of coverage cannot be
109 obtained by or for the applicant or policyholder from an
110 admitted insurer at approved rates.
111 2.a.(I) All insurers required to be members of such
112 association shall participate in its writings, expenses, and
113 losses. Surplus of the association shall be retained for the
114 payment of claims and shall not be distributed to the member
115 insurers. Such participation by member insurers shall be in the
116 proportion that the net direct premiums of each member insurer
117 written for property insurance in this state during the
118 preceding calendar year bear to the aggregate net direct
119 premiums for property insurance of all member insurers, as
120 reduced by any credits for voluntary writings, in this state
121 during the preceding calendar year. For the purposes of this
122 subsection, the term “net direct premiums” means direct written
123 premiums for property insurance, reduced by premium for
124 liability coverage and for the following if included in allied
125 lines: rain and hail on growing crops; livestock; association
126 direct premiums booked; National Flood Insurance Program direct
127 premiums; and similar deductions specifically authorized by the
128 plan of operation and approved by the department. A member’s
129 participation shall begin on the first day of the calendar year
130 following the year in which it is issued a certificate of
131 authority to transact property insurance in the state and shall
132 terminate 1 year after the end of the calendar year during which
133 it no longer holds a certificate of authority to transact
134 property insurance in the state. The commissioner, after review
135 of annual statements, other reports, and any other statistics
136 that the commissioner deems necessary, shall certify to the
137 association the aggregate direct premiums written for property
138 insurance in this state by all member insurers.
139 (II) Effective July 1, 2002, the association shall operate
140 subject to the supervision and approval of a board of governors
141 who are the same individuals that have been appointed by the
142 Treasurer to serve on the board of governors of the Citizens
143 Property Insurance Corporation.
144 (III) The plan of operation shall provide a formula whereby
145 a company voluntarily providing windstorm coverage in affected
146 areas will be relieved wholly or partially from apportionment of
147 a regular assessment pursuant to sub-sub-subparagraph d.(I) or
148 sub-sub-subparagraph d.(II).
149 (IV) A company which is a member of a group of companies
150 under common management may elect to have its credits applied on
151 a group basis, and any company or group may elect to have its
152 credits applied to any other company or group.
153 (V) There shall be no credits or relief from apportionment
154 to a company for emergency assessments collected from its
155 policyholders under sub-sub-subparagraph d.(III).
156 (VI) The plan of operation may also provide for the award
157 of credits, for a period not to exceed 3 years, from a regular
158 assessment pursuant to sub-sub-subparagraph d.(I) or sub-sub
159 subparagraph d.(II) as an incentive for taking policies out of
160 the Residential Property and Casualty Joint Underwriting
161 Association. In order to qualify for the exemption under this
162 sub-sub-subparagraph, the take-out plan must provide that at
163 least 40 percent of the policies removed from the Residential
164 Property and Casualty Joint Underwriting Association cover risks
165 located in Miami-Dade, Broward, and Palm Beach Counties or at
166 least 30 percent of the policies so removed cover risks located
167 in Miami-Dade, Broward, and Palm Beach Counties and an
168 additional 50 percent of the policies so removed cover risks
169 located in other coastal counties, and must also provide that no
170 more than 15 percent of the policies so removed may exclude
171 windstorm coverage. With the approval of the department, the
172 association may waive these geographic criteria for a take-out
173 plan that removes at least the lesser of 100,000 Residential
174 Property and Casualty Joint Underwriting Association policies or
175 15 percent of the total number of Residential Property and
176 Casualty Joint Underwriting Association policies, provided the
177 governing board of the Residential Property and Casualty Joint
178 Underwriting Association certifies that the take-out plan will
179 materially reduce the Residential Property and Casualty Joint
180 Underwriting Association’s 100-year probable maximum loss from
181 hurricanes. With the approval of the department, the board may
182 extend such credits for an additional year if the insurer
183 guarantees an additional year of renewability for all policies
184 removed from the Residential Property and Casualty Joint
185 Underwriting Association, or for 2 additional years if the
186 insurer guarantees 2 additional years of renewability for all
187 policies removed from the Residential Property and Casualty
188 Joint Underwriting Association.
189 b. Assessments to pay deficits in the association under
190 this subparagraph shall be included as an appropriate factor in
191 the making of rates as provided in s. 627.3512.
192 c. The Legislature finds that the potential for unlimited
193 deficit assessments under this subparagraph may induce insurers
194 to attempt to reduce their writings in the voluntary market, and
195 that such actions would worsen the availability problems that
196 the association was created to remedy. It is the intent of the
197 Legislature that insurers remain fully responsible for paying
198 regular assessments and collecting emergency assessments for any
199 deficits of the association; however, it is also the intent of
200 the Legislature to provide a means by which assessment
201 liabilities may be amortized over a period of years.
202 d.(I) When the deficit incurred in a particular calendar
203 year is 10 percent or less of the aggregate statewide direct
204 written premium for property insurance for the prior calendar
205 year for all member insurers, the association shall levy an
206 assessment on member insurers in an amount equal to the deficit.
207 (II) When the deficit incurred in a particular calendar
208 year exceeds 10 percent 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 greater
212 of 10 percent of the deficit or 10 percent of the aggregate
213 statewide direct written premium for property insurance for the
214 prior calendar year for member insurers. Any remaining deficit
215 shall be recovered through emergency assessments under sub-sub
216 subparagraph (III).
217 (III) Upon a determination by the board of directors that a
218 deficit exceeds the amount that will be recovered through
219 regular assessments on member insurers, pursuant to sub-sub
220 subparagraph (I) or sub-sub-subparagraph (II), the board shall
221 levy, after verification by the department, emergency
222 assessments to be collected by member insurers and by
223 underwriting associations created pursuant to this section which
224 write property insurance, upon issuance or renewal of property
225 insurance policies other than National Flood Insurance policies
226 in the year or years following levy of the regular assessments.
227 The amount of the emergency assessment collected in a particular
228 year shall be a uniform percentage of that year’s direct written
229 premium for property insurance for all member insurers and
230 underwriting associations, excluding National Flood Insurance
231 policy premiums, as annually determined by the board and
232 verified by the department. The department shall verify the
233 arithmetic calculations involved in the board’s determination
234 within 30 days after receipt of the information on which the
235 determination was based. Notwithstanding any other provision of
236 law, each member insurer and each underwriting association
237 created pursuant to this section shall collect emergency
238 assessments from its policyholders without such obligation being
239 affected by any credit, limitation, exemption, or deferment. The
240 emergency assessments so collected shall be transferred directly
241 to the association on a periodic basis as determined by the
242 association. The aggregate amount of emergency assessments
243 levied under this sub-sub-subparagraph in any calendar year may
244 not exceed the greater of 10 percent of the amount needed to
245 cover the original deficit, plus interest, fees, commissions,
246 required reserves, and other costs associated with financing of
247 the original deficit, or 10 percent of the aggregate statewide
248 direct written premium for property insurance written by member
249 insurers and underwriting associations for the prior year, plus
250 interest, fees, commissions, required reserves, and other costs
251 associated with financing the original deficit. The board may
252 pledge the proceeds of the emergency assessments under this sub
253 sub-subparagraph as the source of revenue for bonds, to retire
254 any other debt incurred as a result of the deficit or events
255 giving rise to the deficit, or in any other way that the board
256 determines will efficiently recover the deficit. The emergency
257 assessments under this sub-sub-subparagraph shall continue as
258 long as any bonds issued or other indebtedness incurred with
259 respect to a deficit for which the assessment was imposed remain
260 outstanding, unless adequate provision has been made for the
261 payment of such bonds or other indebtedness pursuant to the
262 document governing such bonds or other indebtedness. Emergency
263 assessments collected under this sub-sub-subparagraph are not
264 part of an insurer’s rates, are not premium, and are not subject
265 to premium tax, fees, or commissions; however, failure to pay
266 the emergency assessment shall be treated as failure to pay
267 premium.
268 (IV) Each member insurer’s share of the total regular
269 assessments under sub-sub-subparagraph (I) or sub-sub
270 subparagraph (II) shall be in the proportion that the insurer’s
271 net direct premium for property insurance in this state, for the
272 year preceding the assessment bears to the aggregate statewide
273 net direct premium for property insurance of all member
274 insurers, as reduced by any credits for voluntary writings for
275 that year.
276 (V) If regular deficit assessments are made under sub-sub
277 subparagraph (I) or sub-sub-subparagraph (II), or by the
278 Residential Property and Casualty Joint Underwriting Association
279 under sub-subparagraph (6)(b)3.a., the association shall levy
280 upon the association’s policyholders, as part of its next rate
281 filing, or by a separate rate filing solely for this purpose, a
282 market equalization surcharge in a percentage equal to the total
283 amount of such regular assessments divided by the aggregate
284 statewide direct written premium for property insurance for
285 member insurers for the prior calendar year. Market equalization
286 surcharges under this sub-sub-subparagraph are not considered
287 premium and are not subject to commissions, fees, or premium
288 taxes; however, failure to pay a market equalization surcharge
289 shall be treated as failure to pay premium.
290 e. The governing body of any unit of local government, any
291 residents of which are insured under the plan, may issue bonds
292 as defined in s. 125.013 or s. 166.101 to fund an assistance
293 program, in conjunction with the association, for the purpose of
294 defraying deficits of the association. In order to avoid
295 needless and indiscriminate proliferation, duplication, and
296 fragmentation of such assistance programs, any unit of local
297 government, any residents of which are insured by the
298 association, may provide for the payment of losses, regardless
299 of whether or not the losses occurred within or outside of the
300 territorial jurisdiction of the local government. Revenue bonds
301 may not be issued until validated pursuant to chapter 75, unless
302 a state of emergency is declared by executive order or
303 proclamation of the Governor pursuant to s. 252.36 making such
304 findings as are necessary to determine that it is in the best
305 interests of, and necessary for, the protection of the public
306 health, safety, and general welfare of residents of this state
307 and the protection and preservation of the economic stability of
308 insurers operating in this state, and declaring it an essential
309 public purpose to permit certain municipalities or counties to
310 issue bonds as will provide relief to claimants and
311 policyholders of the association and insurers responsible for
312 apportionment of plan losses. Any such unit of local government
313 may enter into such contracts with the association and with any
314 other entity created pursuant to this subsection as are
315 necessary to carry out this paragraph. Any bonds issued under
316 this sub-subparagraph shall be payable from and secured by
317 moneys received by the association from assessments under this
318 subparagraph, and assigned and pledged to or on behalf of the
319 unit of local government for the benefit of the holders of such
320 bonds. The funds, credit, property, and taxing power of the
321 state or of the unit of local government shall not be pledged
322 for the payment of such bonds. If any of the bonds remain unsold
323 60 days after issuance, the department shall require all
324 insurers subject to assessment to purchase the bonds, which
325 shall be treated as admitted assets; each insurer shall be
326 required to purchase that percentage of the unsold portion of
327 the bond issue that equals the insurer’s relative share of
328 assessment liability under this subsection. An insurer shall not
329 be required to purchase the bonds to the extent that the
330 department determines that the purchase would endanger or impair
331 the solvency of the insurer. The authority granted by this sub
332 subparagraph is additional to any bonding authority granted by
333 subparagraph 6.
334 3. The plan shall also provide that any member with a
335 surplus as to policyholders of $25 million or less writing 25
336 percent or more of its total countrywide property insurance
337 premiums in this state may petition the department, within the
338 first 90 days of each calendar year, to qualify as a limited
339 apportionment company. The apportionment of such a member
340 company in any calendar year for which it is qualified shall not
341 exceed its gross participation, which shall not be affected by
342 the formula for voluntary writings. In no event shall a limited
343 apportionment company be required to participate in any
344 apportionment of losses pursuant to sub-sub-subparagraph 2.d.(I)
345 or sub-sub-subparagraph 2.d.(II) in the aggregate which exceeds
346 $50 million after payment of available plan funds in any
347 calendar year. However, a limited apportionment company shall
348 collect from its policyholders any emergency assessment imposed
349 under sub-sub-subparagraph 2.d.(III). The plan shall provide
350 that, if the department determines that any regular assessment
351 will result in an impairment of the surplus of a limited
352 apportionment company, the department may direct that all or
353 part of such assessment be deferred. However, there shall be no
354 limitation or deferment of an emergency assessment to be
355 collected from policyholders under sub-sub-subparagraph
356 2.d.(III).
357 4. The plan shall provide for the deferment, in whole or in
358 part, of a regular assessment of a member insurer under sub-sub
359 subparagraph 2.d.(I) or sub-sub-subparagraph 2.d.(II), but not
360 for an emergency assessment collected from policyholders under
361 sub-sub-subparagraph 2.d.(III), if, in the opinion of the
362 commissioner, payment of such regular assessment would endanger
363 or impair the solvency of the member insurer. In the event a
364 regular assessment against a member insurer is deferred in whole
365 or in part, the amount by which such assessment is deferred may
366 be assessed against the other member insurers in a manner
367 consistent with the basis for assessments set forth in sub-sub
368 subparagraph 2.d.(I) or sub-sub-subparagraph 2.d.(II).
369 5.a. The plan of operation may include deductibles and
370 rules for classification of risks and rate modifications
371 consistent with the objective of providing and maintaining funds
372 sufficient to pay catastrophe losses.
373 b. It is the intent of the Legislature that the rates for
374 coverage provided by the association be actuarially sound and
375 not competitive with approved rates charged in the admitted
376 voluntary market such that the association functions as a
377 residual market mechanism to provide insurance only when the
378 insurance cannot be procured in the voluntary market. The plan
379 of operation shall provide a mechanism to assure that, beginning
380 no later than January 1, 1999, the rates charged by the
381 association for each line of business are reflective of approved
382 rates in the voluntary market for hurricane coverage for each
383 line of business in the various areas eligible for association
384 coverage.
385 c. The association shall provide for windstorm coverage on
386 residential properties in limits up to $10 million for
387 commercial lines residential risks and up to $1 million for
388 personal lines residential risks. If coverage with the
389 association is sought for a residential risk valued in excess of
390 these limits, coverage shall be available to the risk up to the
391 replacement cost or actual cash value of the property, at the
392 option of the insured, if coverage for the risk cannot be
393 located in the authorized market. The association must accept a
394 commercial lines residential risk with limits above $10 million
395 or a personal lines residential risk with limits above $1
396 million if coverage is not available in the authorized market.
397 The association may write coverage above the limits specified in
398 this subparagraph with or without facultative or other
399 reinsurance coverage, as the association determines appropriate.
400 d. The plan of operation must provide objective criteria
401 and procedures, approved by the department, to be uniformly
402 applied for all applicants in determining whether an individual
403 risk is so hazardous as to be uninsurable. In making this
404 determination and in establishing the criteria and procedures,
405 the following shall be considered:
406 (I) Whether the likelihood of a loss for the individual
407 risk is substantially higher than for other risks of the same
408 class; and
409 (II) Whether the uncertainty associated with the individual
410 risk is such that an appropriate premium cannot be determined.
411
412 The acceptance or rejection of a risk by the association
413 pursuant to such criteria and procedures must be construed as
414 the private placement of insurance, and the provisions of
415 chapter 120 do not apply.
416 e. If the risk accepts an offer of coverage through the
417 market assistance program or through a mechanism established by
418 the association, either before the policy is issued by the
419 association or during the first 30 days of coverage by the
420 association, and the producing agent who submitted the
421 application to the association is not currently appointed by the
422 insurer, the insurer shall:
423 (I) Pay to the producing agent of record of the policy, for
424 the first year, an amount that is the greater of the insurer’s
425 usual and customary commission for the type of policy written or
426 a fee equal to the usual and customary commission of the
427 association; or
428 (II) Offer to allow the producing agent of record of the
429 policy to continue servicing the policy for a period of not less
430 than 1 year and offer to pay the agent the greater of the
431 insurer’s or the association’s usual and customary commission
432 for the type of policy written.
433
434 If the producing agent is unwilling or unable to accept
435 appointment, the new insurer shall pay the agent in accordance
436 with sub-sub-subparagraph (I). Subject to the provisions of s.
437 627.3517, the policies issued by the association must provide
438 that if the association obtains an offer from an authorized
439 insurer to cover the risk at its approved rates under either a
440 standard policy including wind coverage or, if consistent with
441 the insurer’s underwriting rules as filed with the department, a
442 basic policy including wind coverage, the risk is no longer
443 eligible for coverage through the association. Upon termination
444 of eligibility, the association shall provide written notice to
445 the policyholder and agent of record stating that the
446 association policy must be canceled as of 60 days after the date
447 of the notice because of the offer of coverage from an
448 authorized insurer. Other provisions of the insurance code
449 relating to cancellation and notice of cancellation do not apply
450 to actions under this sub-subparagraph.
451 f. When the association enters into a contractual agreement
452 for a take-out plan, the producing agent of record of the
453 association policy is entitled to retain any unearned commission
454 on the policy, and the insurer shall:
455 (I) Pay to the producing agent of record of the association
456 policy, for the first year, an amount that is the greater of the
457 insurer’s usual and customary commission for the type of policy
458 written or a fee equal to the usual and customary commission of
459 the association; or
460 (II) Offer to allow the producing agent of record of the
461 association policy to continue servicing the policy for a period
462 of not less than 1 year and offer to pay the agent the greater
463 of the insurer’s or the association’s usual and customary
464 commission for the type of policy written.
465
466 If the producing agent is unwilling or unable to accept
467 appointment, the new insurer shall pay the agent in accordance
468 with sub-sub-subparagraph (I).
469 6.a. The plan of operation may authorize the formation of a
470 private nonprofit corporation, a private nonprofit
471 unincorporated association, a partnership, a trust, a limited
472 liability company, or a nonprofit mutual company which may be
473 empowered, among other things, to borrow money by issuing bonds
474 or by incurring other indebtedness and to accumulate reserves or
475 funds to be used for the payment of insured catastrophe losses.
476 The plan may authorize all actions necessary to facilitate the
477 issuance of bonds, including the pledging of assessments or
478 other revenues.
479 b. Any entity created under this subsection, or any entity
480 formed for the purposes of this subsection, may sue and be sued,
481 may borrow money; issue bonds, notes, or debt instruments;
482 pledge or sell assessments, market equalization surcharges and
483 other surcharges, rights, premiums, contractual rights,
484 projected recoveries from the Florida Hurricane Catastrophe
485 Fund, other reinsurance recoverables, and other assets as
486 security for such bonds, notes, or debt instruments; enter into
487 any contracts or agreements necessary or proper to accomplish
488 such borrowings; and take other actions necessary to carry out
489 the purposes of this subsection. The association may issue bonds
490 or incur other indebtedness, or have bonds issued on its behalf
491 by a unit of local government pursuant to subparagraph (6)(q)2.,
492 in the absence of a hurricane or other weather-related event,
493 upon a determination by the association subject to approval by
494 the department that such action would enable it to efficiently
495 meet the financial obligations of the association and that such
496 financings are reasonably necessary to effectuate the
497 requirements of this subsection. Any such entity may accumulate
498 reserves and retain surpluses as of the end of any association
499 year to provide for the payment of losses incurred by the
500 association during that year or any future year. The association
501 shall incorporate and continue the plan of operation and
502 articles of agreement in effect on the effective date of chapter
503 76-96, Laws of Florida, to the extent that it is not
504 inconsistent with chapter 76-96, and as subsequently modified
505 consistent with chapter 76-96. The board of directors and
506 officers currently serving shall continue to serve until their
507 successors are duly qualified as provided under the plan. The
508 assets and obligations of the plan in effect immediately prior
509 to the effective date of chapter 76-96 shall be construed to be
510 the assets and obligations of the successor plan created herein.
511 c. In recognition of s. 10, Art. I of the State
512 Constitution, prohibiting the impairment of obligations of
513 contracts, it is the intent of the Legislature that no action be
514 taken whose purpose is to impair any bond indenture or financing
515 agreement or any revenue source committed by contract to such
516 bond or other indebtedness issued or incurred by the association
517 or any other entity created under this subsection.
518 7. On such coverage, an agent’s remuneration shall be that
519 amount of money payable to the agent by the terms of his or her
520 contract with the company with which the business is placed.
521 However, no commission will be paid on that portion of the
522 premium which is in excess of the standard premium of that
523 company.
524 8. Subject to approval by the department, the association
525 may establish different eligibility requirements and operational
526 procedures for any line or type of coverage for any specified
527 eligible area or portion of an eligible area if the board
528 determines that such changes to the eligibility requirements and
529 operational procedures are justified due to the voluntary market
530 being sufficiently stable and competitive in such area or for
531 such line or type of coverage and that consumers who, in good
532 faith, are unable to obtain insurance through the voluntary
533 market through ordinary methods would continue to have access to
534 coverage from the association. When coverage is sought in
535 connection with a real property transfer, such requirements and
536 procedures shall not provide for an effective date of coverage
537 later than the date of the closing of the transfer as
538 established by the transferor, the transferee, and, if
539 applicable, the lender.
540 9. Notwithstanding any other provision of law:
541 a. The pledge or sale of, the lien upon, and the security
542 interest in any rights, revenues, or other assets of the
543 association created or purported to be created pursuant to any
544 financing documents to secure any bonds or other indebtedness of
545 the association shall be and remain valid and enforceable,
546 notwithstanding the commencement of and during the continuation
547 of, and after, any rehabilitation, insolvency, liquidation,
548 bankruptcy, receivership, conservatorship, reorganization, or
549 similar proceeding against the association under the laws of
550 this state or any other applicable laws.
551 b. No such proceeding shall relieve the association of its
552 obligation, or otherwise affect its ability to perform its
553 obligation, to continue to collect, or levy and collect,
554 assessments, market equalization or other surcharges, projected
555 recoveries from the Florida Hurricane Catastrophe Fund,
556 reinsurance recoverables, or any other rights, revenues, or
557 other assets of the association pledged.
558 c. Each such pledge or sale of, lien upon, and security
559 interest in, including the priority of such pledge, lien, or
560 security interest, any such assessments, emergency assessments,
561 market equalization or renewal surcharges, projected recoveries
562 from the Florida Hurricane Catastrophe Fund, reinsurance
563 recoverables, or other rights, revenues, or other assets which
564 are collected, or levied and collected, after the commencement
565 of and during the pendency of or after any such proceeding shall
566 continue unaffected by such proceeding.
567 d. As used in this subsection, the term “financing
568 documents” means any agreement, instrument, or other document
569 now existing or hereafter created evidencing any bonds or other
570 indebtedness of the association or pursuant to which any such
571 bonds or other indebtedness has been or may be issued and
572 pursuant to which any rights, revenues, or other assets of the
573 association are pledged or sold to secure the repayment of such
574 bonds or indebtedness, together with the payment of interest on
575 such bonds or such indebtedness, or the payment of any other
576 obligation of the association related to such bonds or
577 indebtedness.
578 e. Any such pledge or sale of assessments, revenues,
579 contract rights or other rights or assets of the association
580 shall constitute a lien and security interest, or sale, as the
581 case may be, that is immediately effective and attaches to such
582 assessments, revenues, contract, or other rights or assets,
583 whether or not imposed or collected at the time the pledge or
584 sale is made. Any such pledge or sale is effective, valid,
585 binding, and enforceable against the association or other entity
586 making such pledge or sale, and valid and binding against and
587 superior to any competing claims or obligations owed to any
588 other person or entity, including policyholders in this state,
589 asserting rights in any such assessments, revenues, contract, or
590 other rights or assets to the extent set forth in and in
591 accordance with the terms of the pledge or sale contained in the
592 applicable financing documents, whether or not any such person
593 or entity has notice of such pledge or sale and without the need
594 for any physical delivery, recordation, filing, or other action.
595 f. There shall be no liability on the part of, and no cause
596 of action of any nature shall arise against, any member insurer
597 or its agents or employees, agents or employees of the
598 association, members of the board of directors of the
599 association, or the department or its representatives, for any
600 action taken by them in the performance of their duties or
601 responsibilities under this subsection. Such immunity does not
602 apply to actions for breach of any contract or agreement
603 pertaining to insurance, or any willful tort.
604 (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
605 (a) The public purpose of this subsection is to ensure that
606 there is an orderly market for property insurance for residents
607 and businesses of this state.
608 1. The Legislature finds that private insurers are
609 unwilling or unable to provide affordable property insurance
610 coverage in this state to the extent sought and needed. The
611 absence of affordable property insurance threatens the public
612 health, safety, and welfare and likewise threatens the economic
613 health of the state. The state therefore has a compelling public
614 interest and a public purpose to assist in assuring that
615 property in the state is insured and that it is insured at
616 affordable rates so as to facilitate the remediation,
617 reconstruction, and replacement of damaged or destroyed property
618 in order to reduce or avoid the negative effects otherwise
619 resulting to the public health, safety, and welfare, to the
620 economy of the state, and to the revenues of the state and local
621 governments which are needed to provide for the public welfare.
622 It is necessary, therefore, to provide affordable property
623 insurance to applicants who are in good faith entitled to
624 procure insurance through the voluntary market but are unable to
625 do so. The Legislature intends, therefore, that affordable
626 property insurance be provided and that it continue to be
627 provided, as long as necessary, through Citizens Property
628 Insurance Corporation, a government entity that is an integral
629 part of the state, and that is not a private insurance company.
630 To that end, the corporation shall strive to increase the
631 availability of affordable property insurance in this state,
632 while achieving efficiencies and economies, and while providing
633 service to policyholders, applicants, and agents which is no
634 less than the quality generally provided in the voluntary
635 market, for the achievement of the foregoing public purposes.
636 Because it is essential for this government entity to have the
637 maximum financial resources to pay claims following a
638 catastrophic hurricane, it is the intent of the Legislature that
639 the corporation continue to be an integral part of the state and
640 that the income of the corporation be exempt from federal income
641 taxation and that interest on the debt obligations issued by the
642 corporation be exempt from federal income taxation.
643 2. The Residential Property and Casualty Joint Underwriting
644 Association originally created by this statute shall be known as
645 the Citizens Property Insurance Corporation. The corporation
646 shall provide insurance for residential and commercial property,
647 for applicants who are entitled, but, in good faith, are unable
648 to procure insurance through the voluntary market. The
649 corporation shall operate pursuant to a plan of operation
650 approved by order of the Financial Services Commission. The plan
651 is subject to continuous review by the commission. The
652 commission may, by order, withdraw approval of all or part of a
653 plan if the commission determines that conditions have changed
654 since approval was granted and that the purposes of the plan
655 require changes in the plan. For the purposes of this
656 subsection, residential coverage includes both personal lines
657 residential coverage, which consists of the type of coverage
658 provided by homeowner, mobile home owner, dwelling, tenant,
659 condominium unit owner, and similar policies; and commercial
660 lines residential coverage, which consists of the type of
661 coverage provided by condominium association, apartment
662 building, and similar policies.
663 3. With respect to coverage for personal lines residential
664 structures:
665 a. Effective January 1, 2014, a structure that has a
666 dwelling replacement cost of $1 million or more, or a single
667 condominium unit that has a combined dwelling and contents
668 replacement cost of $1 million or more, is not eligible for
669 coverage by the corporation. Such dwellings insured by the
670 corporation on December 31, 2013, may continue to be covered by
671 the corporation until the end of the policy term. The office
672 shall approve the method used by the corporation for valuing the
673 dwelling replacement cost for the purposes of this subparagraph.
674 If a policyholder is insured by the corporation before being
675 determined to be ineligible pursuant to this subparagraph and
676 such policyholder files a lawsuit challenging the determination,
677 the policyholder may remain insured by the corporation until the
678 conclusion of the litigation.
679 b. Effective January 1, 2015, a structure that has a
680 dwelling replacement cost of $900,000 or more, or a single
681 condominium unit that has a combined dwelling and contents
682 replacement cost of $900,000 or more, is not eligible for
683 coverage by the corporation. Such dwellings insured by the
684 corporation on December 31, 2014, may continue to be covered by
685 the corporation only until the end of the policy term.
686 c. Effective January 1, 2016, a structure that has a
687 dwelling replacement cost of $800,000 or more, or a single
688 condominium unit that has a combined dwelling and contents
689 replacement cost of $800,000 or more, is not eligible for
690 coverage by the corporation. Such dwellings insured by the
691 corporation on December 31, 2015, may continue to be covered by
692 the corporation until the end of the policy term.
693 d. Effective January 1, 2017, a structure that has a
694 dwelling replacement cost of $700,000 or more, or a single
695 condominium unit that has a combined dwelling and contents
696 replacement cost of $700,000 or more, is not eligible for
697 coverage by the corporation. Such dwellings insured by the
698 corporation on December 31, 2016, may continue to be covered by
699 the corporation until the end of the policy term.
700 b. The requirements of sub-subparagraph a. sub
701 subparagraphs b.-d. do not apply in counties where the office
702 determines there is not a reasonable degree of competition. In
703 such counties a personal lines residential structure that has a
704 dwelling replacement cost of less than $1 million, or a single
705 condominium unit that has a combined dwelling and contents
706 replacement cost of less than $1 million, is eligible for
707 coverage by the corporation.
708 4. It is the intent of the Legislature that policyholders,
709 applicants, and agents of the corporation receive service and
710 treatment of the highest possible level but never less than that
711 generally provided in the voluntary market. It is also intended
712 that the corporation be held to service standards no less than
713 those applied to insurers in the voluntary market by the office
714 with respect to responsiveness, timeliness, customer courtesy,
715 and overall dealings with policyholders, applicants, or agents
716 of the corporation.
717 5.a. Effective January 1, 2009, a personal lines
718 residential structure that is located in the “wind-borne debris
719 region,” as defined in s. 1609.2, International Building Code
720 (2006), and that has an insured value on the structure of
721 $750,000 or more is not eligible for coverage by the corporation
722 unless the structure has opening protections as required under
723 the Florida Building Code for a newly constructed residential
724 structure in that area. A residential structure is deemed to
725 comply with this sub-subparagraph if it has shutters or opening
726 protections on all openings and if such opening protections
727 complied with the Florida Building Code at the time they were
728 installed.
729 b. Any major structure, as defined in s. 161.54(6)(a), that
730 is newly constructed, or rebuilt, repaired, restored, or
731 remodeled to increase the total square footage of finished area
732 by more than 25 percent, pursuant to a permit applied for after
733 July 1, 2015, is not eligible for coverage by the corporation if
734 the structure is seaward of the coastal construction control
735 line established pursuant to s. 161.053 or is within the Coastal
736 Barrier Resources System as designated by 16 U.S.C. ss. 3501
737 3510.
738 6. With respect to wind-only coverage for commercial lines
739 residential condominiums, effective July 1, 2014, a condominium
740 shall be deemed ineligible for coverage if 50 percent or more of
741 the units are rented more than eight times in a calendar year
742 for a rental agreement period of less than 30 days.
743 (b)1. All insurers authorized to write one or more subject
744 lines of business in this state are subject to assessment by the
745 corporation and, for the purposes of this subsection, are
746 referred to collectively as “assessable insurers.” Insurers
747 writing one or more subject lines of business in this state
748 pursuant to part VIII of chapter 626 are not assessable
749 insurers; however, insureds who procure one or more subject
750 lines of business in this state pursuant to part VIII of chapter
751 626 are subject to assessment by the corporation and are
752 referred to collectively as “assessable insureds.” An insurer’s
753 assessment liability begins on the first day of the calendar
754 year following the year in which the insurer was issued a
755 certificate of authority to transact insurance for subject lines
756 of business in this state and terminates 1 year after the end of
757 the first calendar year during which the insurer no longer holds
758 a certificate of authority to transact insurance for subject
759 lines of business in this state.
760 2.a. All revenues, assets, liabilities, losses, and
761 expenses of the corporation shall be maintained in the Citizens
762 account. The Citizens account may provide divided into three
763 separate accounts as follows:
764 a.(I) A personal lines account for Personal residential
765 policies that provide issued by the corporation which provides
766 comprehensive, multiperil coverage on risks that are not located
767 in areas eligible for coverage by the Florida Windstorm
768 Underwriting Association as those areas were defined on January
769 1, 2002, and for policies that do not provide coverage for the
770 peril of wind on risks that are located in such areas;
771 b.(II) A commercial lines account for Commercial
772 residential and commercial nonresidential policies that provide
773 issued by the corporation which provides coverage for basic
774 property perils on risks that are not located in areas eligible
775 for coverage by the Florida Windstorm Underwriting Association
776 as those areas were defined on January 1, 2002, and for policies
777 that do not provide coverage for the peril of wind on risks that
778 are located in such areas; and
779 c.(III) A coastal account for Personal residential policies
780 and commercial residential and commercial nonresidential
781 property policies that provide issued by the corporation which
782 provides coverage for the peril of wind on risks that are
783 located in areas eligible for coverage by the Florida Windstorm
784 Underwriting Association as those areas were defined on January
785 1, 2002. The corporation may offer policies that provide
786 multiperil coverage and shall offer policies that provide
787 coverage only for the peril of wind for risks located in areas
788 eligible for coverage by the Florida Windstorm Underwriting
789 Association, as those areas were defined on January 1, 2002 in
790 the coastal account. Effective July 1, 2014, The corporation may
791 not offer shall cease offering new commercial residential
792 policies providing multiperil coverage but and shall instead
793 continue to offer commercial residential wind-only policies, and
794 may offer commercial residential policies excluding wind.
795 However, the corporation may, however, continue to renew a
796 commercial residential multiperil policy on a building that was
797 is insured by the corporation on June 30, 2014, under a
798 multiperil policy. In issuing multiperil coverage under this
799 sub-subparagraph, the corporation may use its approved policy
800 forms and rates for risks located in areas not eligible for
801 coverage by the Florida Windstorm Underwriting Association, as
802 those areas were defined on January 1, 2002, and for policies
803 that do not provide coverage for the peril of wind on risks that
804 are located in such areas the personal lines account. An
805 applicant or insured who is eligible to purchase a multiperil
806 policy from the corporation may purchase a multiperil policy
807 from an authorized insurer without prejudice to the applicant’s
808 or insured’s eligibility to prospectively purchase a policy that
809 provides coverage only for the peril of wind from the
810 corporation. An applicant or insured who is eligible for a
811 corporation policy that provides coverage only for the peril of
812 wind may elect to purchase or retain such policy and also
813 purchase or retain coverage excluding wind from an authorized
814 insurer without prejudice to the applicant’s or insured’s
815 eligibility to prospectively purchase a policy that provides
816 multiperil coverage from the corporation. The following
817 policies, which provide coverage only for the peril of wind,
818 must also include quota share primary insurance under
819 subparagraph (c)2.:
820 (I) Personal residential policies and commercial
821 residential and commercial nonresidential property policies that
822 provide coverage for the peril of wind on risks that are located
823 in areas eligible for coverage by the Florida Windstorm
824 Underwriting Association, as those areas were defined on January
825 1, 2002;
826 (II) Policies that provide multiperil coverage, if offered
827 by the corporation, and policies that provide coverage only for
828 the peril of wind for risks located in areas eligible for
829 coverage by the Florida Windstorm Underwriting Association, as
830 those areas were defined on January 1, 2002;
831 (III) Commercial residential wind-only policies;
832 (IV) Commercial residential policies excluding wind, if
833 offered by the corporation; and
834 (V) Commercial residential multiperil policies on a
835 building that was insured by the corporation on June 30, 2014 It
836 is the goal of the Legislature that there be an overall average
837 savings of 10 percent or more for a policyholder who currently
838 has a wind-only policy with the corporation, and an ex-wind
839 policy with a voluntary insurer or the corporation, and who
840 obtains a multiperil policy from the corporation. It is the
841 intent of the Legislature that the offer of multiperil coverage
842 in the coastal account be made and implemented in a manner that
843 does not adversely affect the tax-exempt status of the
844 corporation or creditworthiness of or security for currently
845 outstanding financing obligations or credit facilities of the
846 coastal account, the personal lines account, or the commercial
847 lines account. The coastal account must also include quota share
848 primary insurance under subparagraph (c)2.
849
850 The area eligible for coverage with the corporation under this
851 sub-subparagraph under the coastal account also includes the
852 area within Port Canaveral, which is bordered on the south by
853 the City of Cape Canaveral, bordered on the west by the Banana
854 River, and bordered on the north by Federal Government property.
855 3. With respect to a deficit in the Citizens account:
856 a. Upon a determination by the board of governors that the
857 Citizens account has a projected deficit, the board shall levy a
858 Citizens policyholder surcharge against all policyholders of the
859 corporation.
860 (I) The surcharge shall be levied as a uniform percentage
861 of the premium for the policy of up to 15 percent of such
862 premium, which funds shall be used to offset the deficit.
863 (II) The surcharge is payable upon cancellation or
864 termination of the policy, upon renewal of the policy, or upon
865 issuance of a new policy by the corporation within the first 12
866 months after the date of the levy or the period of time
867 necessary to fully collect the surcharge amount.
868 (III) The surcharge is not considered premium and is not
869 subject to commissions, fees, or premium taxes. However, failure
870 to pay the surcharge shall be treated as failure to pay premium
871 b. The three separate accounts must be maintained as long
872 as financing obligations entered into by the Florida Windstorm
873 Underwriting Association or Residential Property and Casualty
874 Joint Underwriting Association are outstanding, in accordance
875 with the terms of the corresponding financing documents. If no
876 such financing obligations remain outstanding or if the
877 financing documents allow for combining of accounts, the
878 corporation may consolidate the three separate accounts into a
879 new account, to be known as the Citizens account, for all
880 revenues, assets, liabilities, losses, and expenses of the
881 corporation. The Citizens account, if established by the
882 corporation, is authorized to provide coverage to the same
883 extent as provided under each of the three separate accounts.
884 The authority to provide coverage under the Citizens account is
885 set forth in subparagraph 4. Consistent with this subparagraph
886 and prudent investment policies that minimize the cost of
887 carrying debt, the board shall exercise its best efforts to
888 retire existing debt or obtain the approval of necessary parties
889 to amend the terms of existing debt, so as to structure the most
890 efficient plan for consolidating the three separate accounts
891 into a single account. Once the accounts are combined into one
892 account, this subparagraph and subparagraph 3. shall be replaced
893 in their entirety by subparagraphs 4. and 5.
894 c. Creditors of the Residential Property and Casualty Joint
895 Underwriting Association and the accounts specified in sub-sub
896 subparagraphs a.(I) and (II) may have a claim against, and
897 recourse to, those accounts and no claim against, or recourse
898 to, the account referred to in sub-sub-subparagraph a.(III).
899 Creditors of the Florida Windstorm Underwriting Association have
900 a claim against, and recourse to, the account referred to in
901 sub-sub-subparagraph a.(III) and no claim against, or recourse
902 to, the accounts referred to in sub-sub-subparagraphs a.(I) and
903 (II).
904 d. Revenues, assets, liabilities, losses, and expenses not
905 attributable to particular accounts shall be prorated among the
906 accounts.
907 e. The Legislature finds that the revenues of the
908 corporation are revenues that are necessary to meet the
909 requirements set forth in documents authorizing the issuance of
910 bonds under this subsection.
911 f. The income of the corporation may not inure to the
912 benefit of any private person.
913 3. With respect to a deficit in an account:
914 a. After accounting for the Citizens policyholder surcharge
915 imposed under sub-subparagraph j., if the remaining projected
916 deficit incurred in the coastal account in a particular calendar
917 year:
918 (I) Is not greater than 2 percent of the aggregate
919 statewide direct written premium for the subject lines of
920 business for the prior calendar year, the entire deficit shall
921 be recovered through regular assessments of assessable insurers
922 under paragraph (q) and assessable insureds.
923 (II) Exceeds 2 percent of the aggregate statewide direct
924 written premium for the subject lines of business for the prior
925 calendar year, the corporation shall levy regular assessments on
926 assessable insurers under paragraph (q) and on assessable
927 insureds in an amount equal to the greater of 2 percent of the
928 projected deficit or 2 percent of the aggregate statewide direct
929 written premium for the subject lines of business for the prior
930 calendar year. Any remaining projected deficit shall be
931 recovered through emergency assessments under sub-subparagraph
932 e.
933 b. Each assessable insurer’s share of the amount being
934 assessed under sub-subparagraph a. must be in the proportion
935 that the assessable insurer’s direct written premium for the
936 subject lines of business for the year preceding the assessment
937 bears to the aggregate statewide direct written premium for the
938 subject lines of business for that year. The assessment
939 percentage applicable to each assessable insured is the ratio of
940 the amount being assessed under sub-subparagraph a. to the
941 aggregate statewide direct written premium for the subject lines
942 of business for the prior year. Assessments levied by the
943 corporation on assessable insurers under sub-subparagraph a.
944 must be paid as required by the corporation’s plan of operation
945 and paragraph (q). Assessments levied by the corporation on
946 assessable insureds under sub-subparagraph a. shall be collected
947 by the surplus lines agent at the time the surplus lines agent
948 collects the surplus lines tax required by s. 626.932, and paid
949 to the Florida Surplus Lines Service Office at the time the
950 surplus lines agent pays the surplus lines tax to that office.
951 Upon receipt of regular assessments from surplus lines agents,
952 the Florida Surplus Lines Service Office shall transfer the
953 assessments directly to the corporation as determined by the
954 corporation.
955 c. The corporation may not levy regular assessments under
956 paragraph (q) pursuant to sub-subparagraph a. or sub
957 subparagraph b. if the three separate accounts in sub-sub
958 subparagraphs 2.a.(I)-(III) have been consolidated into the
959 Citizens account pursuant to sub-subparagraph 2.b. However, the
960 outstanding balance of any regular assessment levied by the
961 corporation before establishment of the Citizens account remains
962 payable to the corporation.
963 b.d. After accounting for the Citizens policyholder
964 surcharge imposed under sub-subparagraph a. j., the remaining
965 projected deficits in the Citizens personal lines account and in
966 the commercial lines account in a particular calendar year shall
967 be recovered through emergency assessments under sub
968 subparagraph c. e.
969 c.e. Upon a determination by the board of governors that a
970 projected deficit in the Citizens an account exceeds the amount
971 that is expected to be recovered through surcharges regular
972 assessments under sub-subparagraph a., plus the amount that is
973 expected to be recovered through surcharges under sub
974 subparagraph j., the board, after verification by the office,
975 shall levy emergency assessments for as many years as necessary
976 to cover the deficits, to be collected by assessable insurers
977 and the corporation and collected from assessable insureds upon
978 issuance or renewal of policies for subject lines of business,
979 excluding National Flood Insurance Program policies. The amount
980 collected in a particular year must be a uniform percentage of
981 that year’s direct written premium for subject lines of business
982 and the Citizens account all accounts of the corporation,
983 excluding National Flood Insurance Program policy premiums, as
984 annually determined by the board and verified by the office. The
985 office shall verify the arithmetic calculations involved in the
986 board’s determination within 30 days after receipt of the
987 information on which the determination was based. The office
988 shall notify assessable insurers and the Florida Surplus Lines
989 Service Office of the date on which assessable insurers shall
990 begin to collect and assessable insureds shall begin to pay such
991 assessment. The date must be at least 90 days after the date the
992 corporation levies emergency assessments pursuant to this sub
993 subparagraph. Notwithstanding any other provision of law, the
994 corporation and each assessable insurer that writes subject
995 lines of business shall collect emergency assessments from its
996 policyholders without such obligation being affected by any
997 credit, limitation, exemption, or deferment. Emergency
998 assessments levied by the corporation on assessable insureds
999 shall be collected by the surplus lines agent at the time the
1000 surplus lines agent collects the surplus lines tax required by
1001 s. 626.932 and paid to the Florida Surplus Lines Service Office
1002 at the time the surplus lines agent pays the surplus lines tax
1003 to that office. The emergency assessments collected shall be
1004 transferred directly to the corporation on a periodic basis as
1005 determined by the corporation and held by the corporation solely
1006 in the Citizens applicable account. The aggregate amount of
1007 emergency assessments levied for the Citizens an account in any
1008 calendar year may be less than but may not exceed the greater of
1009 10 percent of the amount needed to cover the deficit, plus
1010 interest, fees, commissions, required reserves, and other costs
1011 associated with financing the original deficit, or 10 percent of
1012 the aggregate statewide direct written premium for subject lines
1013 of business and the Citizens account all accounts of the
1014 corporation for the prior year, plus interest, fees,
1015 commissions, required reserves, and other costs associated with
1016 financing the deficit.
1017 d.f. The corporation may pledge the proceeds of
1018 assessments, projected recoveries from the Florida Hurricane
1019 Catastrophe Fund, other insurance and reinsurance recoverables,
1020 policyholder surcharges and other surcharges, and other funds
1021 available to the corporation as the source of revenue for and to
1022 secure bonds issued under paragraph (q), bonds or other
1023 indebtedness issued under subparagraph (c)3., or lines of credit
1024 or other financing mechanisms issued or created under this
1025 subsection, or to retire any other debt incurred as a result of
1026 deficits or events giving rise to deficits, or in any other way
1027 that the board determines will efficiently recover such
1028 deficits. The purpose of the lines of credit or other financing
1029 mechanisms is to provide additional resources to assist the
1030 corporation in covering claims and expenses attributable to a
1031 catastrophe. As used in this subsection, the term “assessments”
1032 includes emergency regular assessments under sub-subparagraph c.
1033 a. or subparagraph (q)1. and emergency assessments under sub
1034 subparagraph e. Emergency assessments collected under sub
1035 subparagraph c. e. are not part of an insurer’s rates, are not
1036 premium, and are not subject to premium tax, fees, or
1037 commissions; however, failure to pay the emergency assessment
1038 shall be treated as failure to pay premium. The emergency
1039 assessments shall continue as long as any bonds issued or other
1040 indebtedness incurred with respect to a deficit for which the
1041 assessment was imposed remain outstanding, unless adequate
1042 provision has been made for the payment of such bonds or other
1043 indebtedness pursuant to the documents governing such bonds or
1044 indebtedness.
1045 e.g. As used in this subsection and for purposes of any
1046 deficit incurred on or after January 25, 2007, the term “subject
1047 lines of business” means insurance written by assessable
1048 insurers or procured by assessable insureds for all property and
1049 casualty lines of business in this state, but not including
1050 workers’ compensation or medical malpractice. As used in this
1051 sub-subparagraph, the term “property and casualty lines of
1052 business” includes all lines of business identified on Form 2,
1053 Exhibit of Premiums and Losses, in the annual statement required
1054 of authorized insurers under s. 624.424 and any rule adopted
1055 under this section, except for those lines identified as
1056 accident and health insurance and except for policies written
1057 under the National Flood Insurance Program or the Federal Crop
1058 Insurance Program. For purposes of this sub-subparagraph, the
1059 term “workers’ compensation” includes both workers’ compensation
1060 insurance and excess workers’ compensation insurance.
1061 f.h. The Florida Surplus Lines Service Office shall
1062 annually determine annually the aggregate statewide written
1063 premium in subject lines of business procured by assessable
1064 insureds and report that information to the corporation in a
1065 form and at a time the corporation specifies to ensure that the
1066 corporation can meet the requirements of this subsection and the
1067 corporation’s financing obligations.
1068 g.i. The Florida Surplus Lines Service Office shall verify
1069 the proper application by surplus lines agents of assessment
1070 percentages for regular assessments and emergency assessments
1071 levied under this subparagraph on assessable insureds and assist
1072 the corporation in ensuring the accurate, timely collection and
1073 payment of assessments by surplus lines agents as required by
1074 the corporation.
1075 j. Upon determination by the board of governors that an
1076 account has a projected deficit, the board shall levy a Citizens
1077 policyholder surcharge against all policyholders of the
1078 corporation.
1079 (I) The surcharge shall be levied as a uniform percentage
1080 of the premium for the policy of up to 15 percent of such
1081 premium, which funds shall be used to offset the deficit.
1082 (II) The surcharge is payable upon cancellation or
1083 termination of the policy, upon renewal of the policy, or upon
1084 issuance of a new policy by the corporation within the first 12
1085 months after the date of the levy or the period of time
1086 necessary to fully collect the surcharge amount.
1087 (III) The corporation may not levy any regular assessments
1088 under paragraph (q) pursuant to sub-subparagraph a. or sub
1089 subparagraph b. with respect to a particular year’s deficit
1090 until the corporation has first levied the full amount of the
1091 surcharge authorized by this sub-subparagraph.
1092 (IV) The surcharge is not considered premium and is not
1093 subject to commissions, fees, or premium taxes. However, failure
1094 to pay the surcharge shall be treated as failure to pay premium.
1095 h.k. If the amount of any assessments or surcharges
1096 collected from corporation policyholders, assessable insurers or
1097 their policyholders, or assessable insureds exceeds the amount
1098 of the deficits, such excess amounts shall be remitted to and
1099 retained by the corporation in a reserve to be used by the
1100 corporation, as determined by the board of governors and
1101 approved by the office, to pay claims or reduce any past,
1102 present, or future plan-year deficits or to reduce outstanding
1103 debt.
1104 4. The Citizens account, if established by the corporation
1105 pursuant to sub-subparagraph 2.b., is authorized to provide:
1106 a. Personal residential policies that provide
1107 comprehensive, multiperil coverage on risks that are not located
1108 in areas eligible for coverage by the Florida Windstorm
1109 Underwriting Association, as those areas were defined on January
1110 1, 2002, and for policies that do not provide coverage for the
1111 peril of wind on risks that are located in such areas;
1112 b. Commercial residential and commercial nonresidential
1113 policies that provide coverage for basic property perils on
1114 risks that are not located in areas eligible for coverage by the
1115 Florida Windstorm Underwriting Association, as those areas were
1116 defined on January 1, 2002, and for policies that do not provide
1117 coverage for the peril of wind on risks that are located in such
1118 areas; and
1119 c. Personal residential policies and commercial residential
1120 and commercial nonresidential property policies that provide
1121 coverage for the peril of wind on risks that are located in
1122 areas eligible for coverage by the Florida Windstorm
1123 Underwriting Association, as those areas were defined on January
1124 1, 2002. The corporation may offer policies that provide
1125 multiperil coverage and shall offer policies that provide
1126 coverage only for the peril of wind for risks located in areas
1127 eligible for coverage by the Florida Windstorm Underwriting
1128 Association, as those areas were defined on January 1, 2002. The
1129 corporation may not offer new commercial residential policies
1130 providing multiperil coverage, but shall continue to offer
1131 commercial residential wind-only policies, and may offer
1132 commercial residential policies excluding wind. However, the
1133 corporation may continue to renew a commercial residential
1134 multiperil policy on a building that was insured by the
1135 corporation on June 30, 2014, under a multiperil policy. In
1136 issuing multiperil coverage under this sub-subparagraph, the
1137 corporation may use its approved policy forms and rates for
1138 risks located in areas not eligible for coverage by the Florida
1139 Windstorm Underwriting Association as those areas were defined
1140 on January 1, 2002, and for policies that do not provide
1141 coverage for the peril of wind on risks that are located in such
1142 areas. An applicant or insured who is eligible to purchase a
1143 multiperil policy from the corporation may purchase a multiperil
1144 policy from an authorized insurer without prejudice to the
1145 applicant’s or insured’s eligibility to prospectively purchase a
1146 policy that provides coverage only for the peril of wind from
1147 the corporation. An applicant or insured who is eligible for a
1148 corporation policy that provides coverage only for the peril of
1149 wind may elect to purchase or retain such policy and also
1150 purchase or retain coverage excluding wind from an authorized
1151 insurer without prejudice to the applicant’s or insured’s
1152 eligibility to prospectively purchase a policy that provides
1153 multiperil coverage from the corporation. The following
1154 policies, which provide coverage only for the peril of wind,
1155 must also include quota share primary insurance under
1156 subparagraph (c)2.: Personal residential policies and commercial
1157 residential and commercial nonresidential property policies that
1158 provide coverage for the peril of wind on risks that are located
1159 in areas eligible for coverage by the Florida Windstorm
1160 Underwriting Association, as those areas were defined on January
1161 1, 2002; policies that provide multiperil coverage, if offered
1162 by the corporation, and policies that provide coverage only for
1163 the peril of wind for risks located in areas eligible for
1164 coverage by the Florida Windstorm Underwriting Association, as
1165 those areas were defined on January 1, 2002; commercial
1166 residential wind-only policies; commercial residential policies
1167 excluding wind, if offered by the corporation; and commercial
1168 residential multiperil policies on a building that was insured
1169 by the corporation on June 30, 2014. The area eligible for
1170 coverage with the corporation under this sub-subparagraph
1171 includes the area within Port Canaveral, which is bordered on
1172 the south by the City of Cape Canaveral, bordered on the west by
1173 the Banana River, and bordered on the north by Federal
1174 Government property.
1175 5. With respect to a deficit in the Citizens account:
1176 a. Upon a determination by the board of governors that the
1177 Citizens account has a projected deficit, the board shall levy a
1178 Citizens policyholder surcharge against all policyholders of the
1179 corporation.
1180 (I) The surcharge shall be levied as a uniform percentage
1181 of the premium for the policy of up to 15 percent of such
1182 premium, which funds shall be used to offset the deficit.
1183 (II) The surcharge is payable upon cancellation or
1184 termination of the policy, upon renewal of the policy, or upon
1185 issuance of a new policy by the corporation within the first 12
1186 months after the date of the levy or the period of time
1187 necessary to fully collect the surcharge amount.
1188 (III) The surcharge is not considered premium and is not
1189 subject to commissions, fees, or premium taxes. However, failure
1190 to pay the surcharge shall be treated as failure to pay premium.
1191 b. After accounting for the Citizens policyholder surcharge
1192 imposed under sub-subparagraph a., the remaining projected
1193 deficit incurred in the Citizens account in a particular
1194 calendar year shall be recovered through emergency assessments
1195 under sub-subparagraph c.
1196 c. Upon a determination by the board of governors that a
1197 projected deficit in the Citizens account exceeds the amount
1198 that is expected to be recovered through surcharges under sub
1199 subparagraph a., the board, after verification by the office,
1200 shall levy emergency assessments for as many years as necessary
1201 to cover the deficits, to be collected by assessable insurers
1202 and the corporation and collected from assessable insureds upon
1203 issuance or renewal of policies for subject lines of business,
1204 excluding National Flood Insurance Program policies. The amount
1205 collected in a particular year must be a uniform percentage of
1206 that year’s direct written premium for subject lines of business
1207 and the Citizens account, National Flood Insurance Program
1208 policy premiums, as annually determined by the board and
1209 verified by the office. The office shall verify the arithmetic
1210 calculations involved in the board’s determination within 30
1211 days after receipt of the information on which the determination
1212 was based. The office shall notify assessable insurers and the
1213 Florida Surplus Lines Service Office of the date on which
1214 assessable insurers shall begin to collect and assessable
1215 insureds shall begin to pay such assessment. The date must be at
1216 least 90 days after the date the corporation levies emergency
1217 assessments pursuant to this sub-subparagraph. Notwithstanding
1218 any other law, the corporation and each assessable insurer that
1219 writes subject lines of business shall collect emergency
1220 assessments from its policyholders without such obligation being
1221 affected by any credit, limitation, exemption, or deferment.
1222 Emergency assessments levied by the corporation on assessable
1223 insureds shall be collected by the surplus lines agent at the
1224 time the surplus lines agent collects the surplus lines tax
1225 required by s. 626.932 and paid to the Florida Surplus Lines
1226 Service Office at the time the surplus lines agent pays the
1227 surplus lines tax to that office. The emergency assessments
1228 collected shall be transferred directly to the corporation on a
1229 periodic basis as determined by the corporation and held by the
1230 corporation solely in the Citizens account. The aggregate amount
1231 of emergency assessments levied for the Citizens account in any
1232 calendar year may be less than, but may not exceed the greater
1233 of, 10 percent of the amount needed to cover the deficit, plus
1234 interest, fees, commissions, required reserves, and other costs
1235 associated with financing the original deficit or 10 percent of
1236 the aggregate statewide direct written premium for subject lines
1237 of business and the Citizens accounts for the prior year, plus
1238 interest, fees, commissions, required reserves, and other costs
1239 associated with financing the deficit.
1240 d. The corporation may pledge the proceeds of assessments,
1241 projected recoveries from the Florida Hurricane Catastrophe
1242 Fund, other insurance and reinsurance recoverables, policyholder
1243 surcharges and other surcharges, and other funds available to
1244 the corporation as the source of revenue for and to secure bonds
1245 issued under paragraph (q), bonds or other indebtedness issued
1246 under subparagraph (c)3., or lines of credit or other financing
1247 mechanisms issued or created under this subsection; or to retire
1248 any other debt incurred as a result of deficits or events giving
1249 rise to deficits, or in any other way that the board determines
1250 will efficiently recover such deficits. The purpose of the lines
1251 of credit or other financing mechanisms is to provide additional
1252 resources to assist the corporation in covering claims and
1253 expenses attributable to a catastrophe. As used in this
1254 subsection, the term “assessments” includes emergency
1255 assessments under sub-subparagraph c. Emergency assessments
1256 collected under sub-subparagraph c. are not part of an insurer’s
1257 rates, are not premium, and are not subject to premium tax,
1258 fees, or commissions; however, failure to pay the emergency
1259 assessment shall be treated as failure to pay premium. The
1260 emergency assessments shall continue as long as any bonds issued
1261 or other indebtedness incurred with respect to a deficit for
1262 which the assessment was imposed remain outstanding, unless
1263 adequate provision has been made for the payment of such bonds
1264 or other indebtedness pursuant to the documents governing such
1265 bonds or indebtedness.
1266 e. As used in this subsection and for purposes of any
1267 deficit incurred on or after January 25, 2007, the term “subject
1268 lines of business” means insurance written by assessable
1269 insurers or procured by assessable insureds for all property and
1270 casualty lines of business in this state, but not including
1271 workers’ compensation or medical malpractice. As used in this
1272 sub-subparagraph, the term “property and casualty lines of
1273 business” includes all lines of business identified on Form 2,
1274 Exhibit of Premiums and Losses, in the annual statement required
1275 of authorized insurers under s. 624.424 and any rule adopted
1276 under this section, except for those lines identified as
1277 accident and health insurance and except for policies written
1278 under the National Flood Insurance Program or the Federal Crop
1279 Insurance Program. For purposes of this sub-subparagraph, the
1280 term “workers’ compensation” includes both workers’ compensation
1281 insurance and excess workers’ compensation insurance.
1282 f. The Florida Surplus Lines Service Office shall annually
1283 determine the aggregate statewide written premium in subject
1284 lines of business procured by assessable insureds and report
1285 that information to the corporation in a form and at a time the
1286 corporation specifies to ensure that the corporation can meet
1287 the requirements of this subsection and the corporation’s
1288 financing obligations.
1289 g. The Florida Surplus Lines Service Office shall verify
1290 the proper application by surplus lines agents of assessment
1291 percentages for emergency assessments levied under this
1292 subparagraph on assessable insureds and assist the corporation
1293 in ensuring the accurate, timely collection and payment of
1294 assessments by surplus lines agents as required by the
1295 corporation.
1296 h. If the amount of any assessments or surcharges collected
1297 from corporation policyholders, assessable insurers or their
1298 policyholders, or assessable insureds exceeds the amount of the
1299 deficits, such excess amounts shall be remitted to and retained
1300 by the corporation in a reserve to be used by the corporation,
1301 as determined by the board of governors and approved by the
1302 office, to pay claims or reduce any past, present, or future
1303 plan-year deficits or to reduce outstanding debt.
1304 (c) The corporation’s plan of operation:
1305 1. Must provide for adoption of residential property and
1306 casualty insurance policy forms and commercial residential and
1307 nonresidential property insurance forms, which must be approved
1308 by the office before use. The corporation shall adopt the
1309 following policy forms:
1310 a. Standard personal lines policy forms that are
1311 comprehensive multiperil policies providing full coverage of a
1312 residential property equivalent to the coverage provided in the
1313 private insurance market under an HO-3, HO-4, or HO-6 policy.
1314 b. Basic personal lines policy forms that are policies
1315 similar to an HO-8 policy or a dwelling fire policy that provide
1316 coverage meeting the requirements of the secondary mortgage
1317 market, but which is more limited than the coverage under a
1318 standard policy.
1319 c. Commercial lines residential and nonresidential policy
1320 forms that are generally similar to the basic perils of full
1321 coverage obtainable for commercial residential structures and
1322 commercial nonresidential structures in the admitted voluntary
1323 market.
1324 d. Personal lines and commercial lines residential property
1325 insurance forms that cover the peril of wind only. The forms are
1326 applicable only to residential properties located in areas
1327 eligible for coverage by the Florida Windstorm Underwriting
1328 Association, as those areas were defined on January 1, 2002.
1329 e. Commercial lines nonresidential property insurance forms
1330 that cover the peril of wind only. The forms are applicable only
1331 to nonresidential properties located in areas eligible for
1332 coverage by the Florida Windstorm Underwriting Association, as
1333 those areas were defined on January 1, 2002.
1334 f. The corporation may adopt variations of the policy forms
1335 listed in sub-subparagraphs a.-e. which contain more restrictive
1336 coverage.
1337 g. The corporation shall offer a basic personal lines
1338 policy similar to an HO-8 policy with dwelling repair based on
1339 common construction materials and methods.
1340 2. Must provide that the corporation adopt a program in
1341 which the corporation and authorized insurers enter into quota
1342 share primary insurance agreements for hurricane coverage, as
1343 defined in s. 627.4025(2)(a), for eligible risks, and adopt
1344 property insurance forms for eligible risks which cover the
1345 peril of wind only.
1346 a. As used in this subsection, the term:
1347 (I) “Approved surplus lines insurer” means an eligible
1348 surplus lines insurer:
1349 (A) That has a financial strength rating of “A” or higher
1350 from A.M. Best Company;
1351 (B) That has a personal lines residential risk program that
1352 is managed by a Florida resident surplus lines broker; and
1353 (C) That offers coverage to applicants for new coverage
1354 from the corporation or current policyholders of the corporation
1355 through a take-out plan approved by the office.
1356 (III) “Primary residence” means the dwelling that is the
1357 policyholder’s primary home or is a rental property that is the
1358 primary home of the tenant, and which the policyholder or tenant
1359 occupies for more than 9 months of each year.
1360 (IV)(I) “Quota share primary insurance” means an
1361 arrangement in which the primary hurricane coverage of an
1362 eligible risk is provided in specified percentages by the
1363 corporation and an authorized insurer. The corporation and
1364 authorized insurer are each solely responsible for a specified
1365 percentage of hurricane coverage of an eligible risk as set
1366 forth in a quota share primary insurance agreement between the
1367 corporation and an authorized insurer and the insurance
1368 contract. The responsibility of the corporation or authorized
1369 insurer to pay its specified percentage of hurricane losses of
1370 an eligible risk, as set forth in the agreement, may not be
1371 altered by the inability of the other party to pay its specified
1372 percentage of losses. Eligible risks that are provided hurricane
1373 coverage through a quota share primary insurance arrangement
1374 must be provided policy forms that set forth the obligations of
1375 the corporation and authorized insurer under the arrangement,
1376 clearly specify the percentages of quota share primary insurance
1377 provided by the corporation and authorized insurer, and
1378 conspicuously and clearly state that the authorized insurer and
1379 the corporation may not be held responsible beyond their
1380 specified percentage of coverage of hurricane losses.
1381 (II) “Eligible risks” means personal lines residential and
1382 commercial lines residential risks that meet the underwriting
1383 criteria of the corporation and are located in areas that were
1384 eligible for coverage by the Florida Windstorm Underwriting
1385 Association on January 1, 2002.
1386 b. The corporation may enter into quota share primary
1387 insurance agreements with authorized insurers at corporation
1388 coverage levels of 90 percent and 50 percent.
1389 c. If the corporation determines that additional coverage
1390 levels are necessary to maximize participation in quota share
1391 primary insurance agreements by authorized insurers, the
1392 corporation may establish additional coverage levels. However,
1393 the corporation’s quota share primary insurance coverage level
1394 may not exceed 90 percent.
1395 d. Any quota share primary insurance agreement entered into
1396 between an authorized insurer and the corporation must provide
1397 for a uniform specified percentage of coverage of hurricane
1398 losses, by county or territory as set forth by the corporation
1399 board, for all eligible risks of the authorized insurer covered
1400 under the agreement.
1401 e. Any quota share primary insurance agreement entered into
1402 between an authorized insurer and the corporation is subject to
1403 review and approval by the office. However, such agreement shall
1404 be authorized only as to insurance contracts entered into
1405 between an authorized insurer and an insured who is already
1406 insured by the corporation for wind coverage.
1407 f. For all eligible risks covered under quota share primary
1408 insurance agreements, the exposure and coverage levels for both
1409 the corporation and authorized insurers shall be reported by the
1410 corporation to the Florida Hurricane Catastrophe Fund. For all
1411 policies of eligible risks covered under such agreements, the
1412 corporation and the authorized insurer must maintain complete
1413 and accurate records for the purpose of exposure and loss
1414 reimbursement audits as required by fund rules. The corporation
1415 and the authorized insurer shall each maintain duplicate copies
1416 of policy declaration pages and supporting claims documents.
1417 g. The corporation board shall establish in its plan of
1418 operation standards for quota share agreements which ensure that
1419 there is no discriminatory application among insurers as to the
1420 terms of the agreements, pricing of the agreements, incentive
1421 provisions if any, and consideration paid for servicing policies
1422 or adjusting claims.
1423 h. The quota share primary insurance agreement between the
1424 corporation and an authorized insurer must set forth the
1425 specific terms under which coverage is provided, including, but
1426 not limited to, the sale and servicing of policies issued under
1427 the agreement by the insurance agent of the authorized insurer
1428 producing the business, the reporting of information concerning
1429 eligible risks, the payment of premium to the corporation, and
1430 arrangements for the adjustment and payment of hurricane claims
1431 incurred on eligible risks by the claims adjuster and personnel
1432 of the authorized insurer. Entering into a quota sharing
1433 insurance agreement between the corporation and an authorized
1434 insurer is voluntary and at the discretion of the authorized
1435 insurer.
1436 3. May provide that the corporation may employ or otherwise
1437 contract with individuals or other entities to provide
1438 administrative or professional services that may be appropriate
1439 to effectuate the plan. The corporation may borrow funds by
1440 issuing bonds or by incurring other indebtedness, and shall have
1441 other powers reasonably necessary to effectuate the requirements
1442 of this subsection, including, without limitation, the power to
1443 issue bonds and incur other indebtedness in order to refinance
1444 outstanding bonds or other indebtedness. The corporation may
1445 seek judicial validation of its bonds or other indebtedness
1446 under chapter 75. The corporation may issue bonds or incur other
1447 indebtedness, or have bonds issued on its behalf by a unit of
1448 local government pursuant to subparagraph (q)2. in the absence
1449 of a hurricane or other weather-related event, upon a
1450 determination by the corporation, subject to approval by the
1451 office, that such action would enable it to efficiently meet the
1452 financial obligations of the corporation and that such
1453 financings are reasonably necessary to effectuate the
1454 requirements of this subsection. The corporation may take all
1455 actions needed to facilitate tax-free status for such bonds or
1456 indebtedness, including formation of trusts or other affiliated
1457 entities. The corporation may pledge assessments, projected
1458 recoveries from the Florida Hurricane Catastrophe Fund, other
1459 reinsurance recoverables, policyholder surcharges and other
1460 surcharges, and other funds available to the corporation as
1461 security for bonds or other indebtedness. In recognition of s.
1462 10, Art. I of the State Constitution, prohibiting the impairment
1463 of obligations of contracts, it is the intent of the Legislature
1464 that no action be taken whose purpose is to impair any bond
1465 indenture or financing agreement or any revenue source committed
1466 by contract to such bond or other indebtedness.
1467 4. Must require that the corporation operate subject to the
1468 supervision and approval of a board of governors consisting of
1469 nine individuals who are residents of this state and who are
1470 from different geographical areas of the state, one of whom is
1471 appointed by the Governor and serves solely to advocate on
1472 behalf of the consumer. The appointment of a consumer
1473 representative by the Governor is deemed to be within the scope
1474 of the exemption provided in s. 112.313(7)(b) and is in addition
1475 to the appointments authorized under sub-subparagraph a.
1476 a. The Governor, the Chief Financial Officer, the President
1477 of the Senate, and the Speaker of the House of Representatives
1478 shall each appoint two members of the board. At least one of the
1479 two members appointed by each appointing officer must have
1480 demonstrated expertise in insurance and be deemed to be within
1481 the scope of the exemption provided in s. 112.313(7)(b). The
1482 Chief Financial Officer shall designate one of the appointees as
1483 chair. All board members serve at the pleasure of the appointing
1484 officer. All members of the board are subject to removal at will
1485 by the officers who appointed them. All board members, including
1486 the chair, must be appointed to serve for 3-year terms beginning
1487 annually on a date designated by the plan. However, for the
1488 first term beginning on or after July 1, 2009, each appointing
1489 officer shall appoint one member of the board for a 2-year term
1490 and one member for a 3-year term. A board vacancy shall be
1491 filled for the unexpired term by the appointing officer. The
1492 Chief Financial Officer shall appoint a technical advisory group
1493 to provide information and advice to the board in connection
1494 with the board’s duties under this subsection. The executive
1495 director and senior managers of the corporation shall be engaged
1496 by the board and serve at the pleasure of the board. Any
1497 executive director appointed on or after July 1, 2006, is
1498 subject to confirmation by the Senate. The executive director is
1499 responsible for employing other staff as the corporation may
1500 require, subject to review and concurrence by the board.
1501 b. The board shall create a Market Accountability Advisory
1502 Committee to assist the corporation in developing awareness of
1503 its rates and its customer and agent service levels in
1504 relationship to the voluntary market insurers writing similar
1505 coverage.
1506 (I) The members of the advisory committee consist of the
1507 following 11 persons, one of whom must be elected chair by the
1508 members of the committee: four representatives, one appointed by
1509 the Florida Association of Insurance Agents, one by the Florida
1510 Association of Insurance and Financial Advisors, one by the
1511 Professional Insurance Agents of Florida, and one by the Latin
1512 American Association of Insurance Agencies; three
1513 representatives appointed by the insurers with the three highest
1514 voluntary market share of residential property insurance
1515 business in the state; one representative from the Office of
1516 Insurance Regulation; one consumer appointed by the board who is
1517 insured by the corporation at the time of appointment to the
1518 committee; one representative appointed by the Florida
1519 Association of Realtors; and one representative appointed by the
1520 Florida Bankers Association. All members shall be appointed to
1521 3-year terms and may serve for consecutive terms.
1522 (II) The committee shall report to the corporation at each
1523 board meeting on insurance market issues which may include rates
1524 and rate competition with the voluntary market; service,
1525 including policy issuance, claims processing, and general
1526 responsiveness to policyholders, applicants, and agents; and
1527 matters relating to depopulation.
1528 5. Must provide a procedure for determining the eligibility
1529 of a risk for coverage, as follows:
1530 a. Subject to s. 627.3517, with respect to personal lines
1531 residential risks that are primary residences, if the risk is
1532 offered coverage from an authorized insurer at the insurer’s
1533 approved rate under a standard policy including wind coverage
1534 or, if consistent with the insurer’s underwriting rules as filed
1535 with the office, a basic policy including wind coverage, for a
1536 new application to the corporation for coverage, the risk is not
1537 eligible for any policy issued by the corporation unless the
1538 premium for coverage from the authorized insurer is more than 20
1539 percent greater than the premium for comparable coverage from
1540 the corporation. Whenever an offer of coverage for a personal
1541 lines residential risk that is a primary residence is received
1542 for a policyholder of the corporation at renewal from an
1543 authorized insurer, if the offer is equal to or less than the
1544 corporation’s renewal premium for comparable coverage, the risk
1545 is not eligible for coverage with the corporation for policies
1546 that renew before April 1, 2023; for policies that renew on or
1547 after that date, the risk is not eligible for coverage with the
1548 corporation unless the premium for coverage from the authorized
1549 insurer is more than 20 percent greater than the corporation’s
1550 renewal premium for comparable coverage. If the risk is not able
1551 to obtain such offer, the risk is eligible for a standard policy
1552 including wind coverage or a basic policy including wind
1553 coverage issued by the corporation; however, if the risk could
1554 not be insured under a standard policy including wind coverage
1555 regardless of market conditions, the risk is eligible for a
1556 basic policy including wind coverage unless rejected under
1557 subparagraph 8. The corporation shall determine the type of
1558 policy to be provided on the basis of objective standards
1559 specified in the underwriting manual and based on generally
1560 accepted underwriting practices. A policyholder removed from the
1561 corporation through an assumption agreement does not remain
1562 eligible for coverage from the corporation after the end of the
1563 policy term. However, any policy removed from the corporation
1564 through an assumption agreement remains on the corporation’s
1565 policy forms through the end of the policy term. This sub
1566 subparagraph applies only to risks that are primary residences.
1567 (I) If the risk accepts an offer of coverage through the
1568 market assistance plan or through a mechanism established by the
1569 corporation other than a plan established by s. 627.3518, before
1570 a policy is issued to the risk by the corporation or during the
1571 first 30 days of coverage by the corporation, and the producing
1572 agent who submitted the application to the plan or to the
1573 corporation is not currently appointed by the insurer, the
1574 insurer shall:
1575 (A) Pay to the producing agent of record of the policy for
1576 the first year, an amount that is the greater of the insurer’s
1577 usual and customary commission for the type of policy written or
1578 a fee equal to the usual and customary commission of the
1579 corporation; or
1580 (B) Offer to allow the producing agent of record of the
1581 policy to continue servicing the policy for at least 1 year and
1582 offer to pay the agent the greater of the insurer’s or the
1583 corporation’s usual and customary commission for the type of
1584 policy written.
1585
1586 If the producing agent is unwilling or unable to accept
1587 appointment, the new insurer shall pay the agent in accordance
1588 with sub-sub-sub-subparagraph (A).
1589 (II) If the corporation enters into a contractual agreement
1590 for a take-out plan, the producing agent of record of the
1591 corporation policy is entitled to retain any unearned commission
1592 on the policy, and the insurer shall:
1593 (A) Pay to the producing agent of record, for the first
1594 year, an amount that is the greater of the insurer’s usual and
1595 customary commission for the type of policy written or a fee
1596 equal to the usual and customary commission of the corporation;
1597 or
1598 (B) Offer to allow the producing agent of record to
1599 continue servicing the policy for at least 1 year and offer to
1600 pay the agent the greater of the insurer’s or the corporation’s
1601 usual and customary commission for the type of policy written.
1602
1603 If the producing agent is unwilling or unable to accept
1604 appointment, the new insurer shall pay the agent in accordance
1605 with sub-sub-sub-subparagraph (A).
1606 b. With respect to commercial lines residential risks, for
1607 a new application to the corporation for coverage, if the risk
1608 is offered coverage under a policy including wind coverage from
1609 an authorized insurer at its approved rate, the risk is not
1610 eligible for a policy issued by the corporation unless the
1611 premium for coverage from the authorized insurer is more than 20
1612 percent greater than the premium for comparable coverage from
1613 the corporation. Whenever an offer of coverage for a commercial
1614 lines residential risk is received for a policyholder of the
1615 corporation at renewal from an authorized insurer, the risk is
1616 not eligible for coverage with the corporation unless the
1617 premium for coverage from the authorized insurer is more than 20
1618 percent greater than the corporation’s renewal premium for
1619 comparable coverage. If the risk is not able to obtain any such
1620 offer, the risk is eligible for a policy including wind coverage
1621 issued by the corporation. A policyholder removed from the
1622 corporation through an assumption agreement remains eligible for
1623 coverage from the corporation until the end of the policy term.
1624 However, any policy removed from the corporation through an
1625 assumption agreement remains on the corporation’s policy forms
1626 through the end of the policy term.
1627 (I) If the risk accepts an offer of coverage through the
1628 market assistance plan or through a mechanism established by the
1629 corporation other than a plan established by s. 627.3518, before
1630 a policy is issued to the risk by the corporation or during the
1631 first 30 days of coverage by the corporation, and the producing
1632 agent who submitted the application to the plan or the
1633 corporation is not currently appointed by the insurer, the
1634 insurer shall:
1635 (A) Pay to the producing agent of record of the policy, for
1636 the first year, an amount that is the greater of the insurer’s
1637 usual and customary commission for the type of policy written or
1638 a fee equal to the usual and customary commission of the
1639 corporation; or
1640 (B) Offer to allow the producing agent of record of the
1641 policy to continue servicing the policy for at least 1 year and
1642 offer to pay the agent the greater of the insurer’s or the
1643 corporation’s usual and customary commission for the type of
1644 policy written.
1645
1646 If the producing agent is unwilling or unable to accept
1647 appointment, the new insurer shall pay the agent in accordance
1648 with sub-sub-sub-subparagraph (A).
1649 (II) If the corporation enters into a contractual agreement
1650 for a take-out plan, the producing agent of record of the
1651 corporation policy is entitled to retain any unearned commission
1652 on the policy, and the insurer shall:
1653 (A) Pay to the producing agent of record, for the first
1654 year, an amount that is the greater of the insurer’s usual and
1655 customary commission for the type of policy written or a fee
1656 equal to the usual and customary commission of the corporation;
1657 or
1658 (B) Offer to allow the producing agent of record to
1659 continue servicing the policy for at least 1 year and offer to
1660 pay the agent the greater of the insurer’s or the corporation’s
1661 usual and customary commission for the type of policy written.
1662
1663 If the producing agent is unwilling or unable to accept
1664 appointment, the new insurer shall pay the agent in accordance
1665 with sub-sub-sub-subparagraph (A).
1666 c. For purposes of determining comparable coverage under
1667 sub-subparagraphs a. and b., the comparison must be based on
1668 those forms and coverages that are reasonably comparable. The
1669 corporation may rely on a determination of comparable coverage
1670 and premium made by the producing agent who submits the
1671 application to the corporation, made in the agent’s capacity as
1672 the corporation’s agent. For purposes of comparing the premium
1673 for comparable coverage under sub-subparagraphs a. and b.,
1674 premium includes any surcharge or assessment that is actually
1675 applied to such policy. A comparison may be made solely of the
1676 premium with respect to the main building or structure only on
1677 the following basis: the same Coverage A or other building
1678 limits; the same percentage hurricane deductible that applies on
1679 an annual basis or that applies to each hurricane for commercial
1680 residential property; the same percentage of ordinance and law
1681 coverage, if the same limit is offered by both the corporation
1682 and the authorized insurer; the same mitigation credits, to the
1683 extent the same types of credits are offered both by the
1684 corporation and the authorized insurer; the same method for loss
1685 payment, such as replacement cost or actual cash value, if the
1686 same method is offered both by the corporation and the
1687 authorized insurer in accordance with underwriting rules; and
1688 any other form or coverage that is reasonably comparable as
1689 determined by the board. If an application is submitted to the
1690 corporation for wind-only coverage on a risk that is located in
1691 an area eligible for coverage by the Florida Windstorm
1692 Underwriting Association, as that area was defined on January 1,
1693 2002, the premium for the corporation’s wind-only policy plus
1694 the premium for the ex-wind policy that is offered by an
1695 authorized insurer to the applicant must be compared to the
1696 premium for multiperil coverage offered by an authorized
1697 insurer, subject to the standards for comparison specified in
1698 this subparagraph. If the corporation or the applicant requests
1699 from the authorized insurer a breakdown of the premium of the
1700 offer by types of coverage so that a comparison may be made by
1701 the corporation or its agent and the authorized insurer refuses
1702 or is unable to provide such information, the corporation may
1703 treat the offer as not being an offer of coverage from an
1704 authorized insurer at the insurer’s approved rate. However,
1705 notwithstanding any other law, this sub-subparagraph does not
1706 apply to a personal lines residential policy that does not cover
1707 a primary residence.
1708 d. Subject to s. 627.3517, with respect to personal lines
1709 residential risks that are not primary residences, if the risk
1710 is offered coverage from an authorized insurer at the insurer’s
1711 approved rate or from an approved surplus lines insurer at the
1712 rate approved by the office as part of such surplus lines
1713 insurer’s take-out plan for a new application to the corporation
1714 for coverage, the risk is not eligible for any policy issued by
1715 the corporation. Whenever an offer of coverage for a personal
1716 lines residential risk that is not a primary residence is
1717 received for a policyholder of the corporation at renewal from
1718 an authorized insurer at the insurer’s approved rate or an
1719 approved surplus lines insurer at the rate approved by the
1720 office as part of such insurer’s take-out plan, the risk is not
1721 eligible for coverage with the corporation for policies that
1722 renew on or after July 1, 2024. If the risk is not able to
1723 obtain such offer, the risk is eligible for a standard policy
1724 including wind coverage or a basic policy including wind
1725 coverage issued by the corporation. If the risk could not be
1726 insured under a standard policy including wind coverage
1727 regardless of market conditions, the risk is eligible for a
1728 basic policy including wind coverage unless rejected under
1729 subparagraph 8. The corporation shall determine the type of
1730 policy to be provided on the basis of objective standards
1731 specified in the underwriting manual and based on generally
1732 accepted underwriting practices. A policyholder removed from the
1733 corporation through an assumption agreement does not remain
1734 eligible for coverage from the corporation after the end of the
1735 policy term. However, any policy removed from the corporation
1736 through an assumption agreement remains on the corporation’s
1737 policy forms through the end of the policy term.
1738 (I) If the risk accepts an offer of coverage through the
1739 market assistance plan or through a mechanism established by the
1740 corporation other than a plan established by s. 627.3518, before
1741 a policy is issued to the risk by the corporation or during the
1742 first 30 days of coverage by the corporation, and the producing
1743 agent who submitted the application to the plan or to the
1744 corporation is not currently appointed by the insurer, the
1745 insurer shall:
1746 (A) Pay to the producing agent of record of the policy, for
1747 the first year, an amount that is the greater of the insurer’s
1748 usual and customary commission for the type of policy written or
1749 a fee equal to the usual and customary commission of the
1750 corporation; or
1751 (B) Offer to allow the producing agent of record of the
1752 policy to continue servicing the policy for at least 1 year and
1753 offer to pay the agent the greater of the insurer’s or the
1754 corporation’s usual and customary commission for the type of
1755 policy written.
1756
1757 If the producing agent is unwilling or unable to accept
1758 appointment, the new insurer shall pay the agent in accordance
1759 with sub-sub-sub-subparagraph (A).
1760 (II) If the corporation enters into a contractual agreement
1761 for a take-out plan, the producing agent of record of the
1762 corporation policy is entitled to retain any unearned commission
1763 on the policy, and the insurer shall:
1764 (A) Pay to the producing agent of record, for the first
1765 year, an amount that is the greater of the insurer’s usual and
1766 customary commission for the type of policy written or a fee
1767 equal to the usual and customary commission of the corporation;
1768 or
1769 (B) Offer to allow the producing agent of record to
1770 continue servicing the policy for at least 1 year and offer to
1771 pay the agent the greater of the insurer’s or the corporation’s
1772 usual and customary commission for the type of policy written.
1773
1774 If the producing agent is unwilling or unable to accept
1775 appointment, the new insurer shall pay the agent in accordance
1776 with sub-sub-sub-subparagraph (A).
1777 6. Must include rules for classifications of risks and
1778 rates.
1779 7. Must provide that if premium and investment income:
1780 a. for the Citizens an account, which are attributable to a
1781 particular calendar year, are in excess of projected losses and
1782 expenses for the Citizens account attributable to that year,
1783 such excess shall be held in surplus in the Citizens account.
1784 Such surplus must be available to defray deficits in the
1785 Citizens that account as to future years and used for that
1786 purpose before assessing assessable insurers and assessable
1787 insureds as to any calendar year; or
1788 b. For the Citizens account, if established by the
1789 corporation, which are attributable to a particular calendar
1790 year are in excess of projected losses and expenses for the
1791 Citizens account attributable to that year, such excess shall be
1792 held in surplus in the Citizens account. Such surplus must be
1793 available to defray deficits in the Citizens account as to
1794 future years and used for that purpose before assessing
1795 assessable insurers and assessable insureds as to any calendar
1796 year.
1797 8. Must provide objective criteria and procedures to be
1798 uniformly applied to all applicants in determining whether an
1799 individual risk is so hazardous as to be uninsurable. In making
1800 this determination and in establishing the criteria and
1801 procedures, the following must be considered:
1802 a. Whether the likelihood of a loss for the individual risk
1803 is substantially higher than for other risks of the same class;
1804 and
1805 b. Whether the uncertainty associated with the individual
1806 risk is such that an appropriate premium cannot be determined.
1807
1808 The acceptance or rejection of a risk by the corporation shall
1809 be construed as the private placement of insurance, and the
1810 provisions of chapter 120 do not apply.
1811 9. Must provide that the corporation make its best efforts
1812 to procure catastrophe reinsurance at reasonable rates, to cover
1813 its projected 100-year probable maximum loss as determined by
1814 the board of governors. If catastrophe reinsurance is not
1815 available at reasonable rates, the corporation need not purchase
1816 it, but the corporation shall include the costs of reinsurance
1817 to cover its projected 100-year probable maximum loss in its
1818 rate calculations even if it does not purchase catastrophe
1819 reinsurance.
1820 10. The policies issued by the corporation must provide
1821 that if the corporation or the market assistance plan obtains an
1822 offer from an authorized insurer to cover the risk at its
1823 approved rates, the risk is no longer eligible for renewal
1824 through the corporation, except as otherwise provided in this
1825 subsection.
1826 11. Corporation policies and applications must include a
1827 notice that the corporation policy could, under this section, be
1828 replaced with a policy issued by an authorized insurer which
1829 does not provide coverage identical to the coverage provided by
1830 the corporation. The notice must also specify that acceptance of
1831 corporation coverage creates a conclusive presumption that the
1832 applicant or policyholder is aware of this potential.
1833 12. May establish, subject to approval by the office,
1834 different eligibility requirements and operational procedures
1835 for any line or type of coverage for any specified county or
1836 area if the board determines that such changes are justified due
1837 to the voluntary market being sufficiently stable and
1838 competitive in such area or for such line or type of coverage
1839 and that consumers who, in good faith, are unable to obtain
1840 insurance through the voluntary market through ordinary methods
1841 continue to have access to coverage from the corporation. If
1842 coverage is sought in connection with a real property transfer,
1843 the requirements and procedures may not provide an effective
1844 date of coverage later than the date of the closing of the
1845 transfer as established by the transferor, the transferee, and,
1846 if applicable, the lender.
1847 13. Must provide that:
1848 a. With respect to the coastal account, any assessable
1849 insurer with a surplus as to policyholders of $25 million or
1850 less writing 25 percent or more of its total countrywide
1851 property insurance premiums in this state may petition the
1852 office, within the first 90 days of each calendar year, to
1853 qualify as a limited apportionment company. A regular assessment
1854 levied by the corporation on a limited apportionment company for
1855 a deficit incurred by the corporation for the coastal account
1856 may be paid to the corporation on a monthly basis as the
1857 assessments are collected by the limited apportionment company
1858 from its insureds, but a limited apportionment company must
1859 begin collecting the regular assessments not later than 90 days
1860 after the regular assessments are levied by the corporation, and
1861 the regular assessments must be paid in full within 15 months
1862 after being levied by the corporation. A limited apportionment
1863 company shall collect from its policyholders any emergency
1864 assessment imposed under sub-subparagraph (b)3.e. The plan must
1865 provide that, if the office determines that any regular
1866 assessment will result in an impairment of the surplus of a
1867 limited apportionment company, the office may direct that all or
1868 part of such assessment be deferred as provided in subparagraph
1869 (q)4. However, an emergency assessment to be collected from
1870 policyholders under sub-subparagraph (b)3.e. may not be limited
1871 or deferred; or
1872 b. With respect to the Citizens account, if established by
1873 the corporation pursuant to sub-subparagraph (b)2.b., any
1874 assessable insurer with a surplus as to policyholders of $25
1875 million or less and writing 25 percent or more of its total
1876 countrywide property insurance premiums in this state may
1877 petition the office, within the first 90 days of each calendar
1878 year, to qualify as a limited apportionment company. A limited
1879 apportionment company shall collect from its policyholders any
1880 emergency assessment imposed under sub-subparagraph (b)5.c. An
1881 emergency assessment to be collected from policyholders under
1882 sub-subparagraph (b)5.c. may not be limited or deferred.
1883 14. Must provide that the corporation appoint as its
1884 licensed agents only those agents who throughout such
1885 appointments also hold an appointment as defined in s. 626.015
1886 by at least three insurers an insurer who are is authorized to
1887 write and are is actually writing or renewing personal lines
1888 residential property coverage, commercial residential property
1889 coverage, or commercial nonresidential property coverage within
1890 the state.
1891 14.15. Must provide a premium payment plan option to its
1892 policyholders which, at a minimum, allows for quarterly and
1893 semiannual payment of premiums. A monthly payment plan may, but
1894 is not required to, be offered.
1895 15.16. Must limit coverage on mobile homes or manufactured
1896 homes built before 1994 to actual cash value of the dwelling
1897 rather than replacement costs of the dwelling.
1898 16.17. Must provide coverage for manufactured or mobile
1899 home dwellings. Such coverage must also include the following
1900 attached structures:
1901 a. Screened enclosures that are aluminum framed or screened
1902 enclosures that are not covered by the same or substantially the
1903 same materials as those of the primary dwelling;
1904 b. Carports that are aluminum or carports that are not
1905 covered by the same or substantially the same materials as those
1906 of the primary dwelling; and
1907 c. Patios that have a roof covering that is constructed of
1908 materials that are not the same or substantially the same
1909 materials as those of the primary dwelling.
1910
1911 The corporation shall make available a policy for mobile homes
1912 or manufactured homes for a minimum insured value of at least
1913 $3,000.
1914 17.18. May provide such limits of coverage as the board
1915 determines, consistent with the requirements of this subsection.
1916 18.19. May require commercial property to meet specified
1917 hurricane mitigation construction features as a condition of
1918 eligibility for coverage.
1919 19.20. Must provide that new or renewal policies issued by
1920 the corporation on or after January 1, 2012, which cover
1921 sinkhole loss do not include coverage for any loss to
1922 appurtenant structures, driveways, sidewalks, decks, or patios
1923 that are directly or indirectly caused by sinkhole activity. The
1924 corporation shall exclude such coverage using a notice of
1925 coverage change, which may be included with the policy renewal,
1926 and not by issuance of a notice of nonrenewal of the excluded
1927 coverage upon renewal of the current policy.
1928 20.a.21.a. As of January 1, 2012, unless the Citizens
1929 account has been established pursuant to sub-subparagraph
1930 (b)2.b., Must require that the agent obtain from an applicant
1931 for coverage from the corporation an acknowledgment signed by
1932 the applicant, which includes, at a minimum, the following
1933 statement:
1934
1935 ACKNOWLEDGMENT OF POTENTIAL SURCHARGE
1936 AND ASSESSMENT LIABILITY:
1937
1938 1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
1939 CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
1940 DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
1941 MY POLICY COULD BE SUBJECT TO SURCHARGES AND ASSESSMENTS, WHICH
1942 WILL BE DUE AND PAYABLE UPON RENEWAL, CANCELLATION, OR
1943 TERMINATION OF THE POLICY, AND THAT THE SURCHARGES AND
1944 ASSESSMENTS COULD BE AS HIGH AS 25 45 PERCENT OF MY PREMIUM, OR
1945 A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA LEGISLATURE.
1946 2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
1947 SURCHARGE, WHICH COULD BE AS HIGH AS 15 45 PERCENT OF MY
1948 PREMIUM, BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND
1949 THAT TO BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY
1950 TO OBTAIN PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR
1951 RENEWING COVERAGE WITH CITIZENS. I UNDERSTAND THAT PRIVATE
1952 MARKET INSURANCE RATES ARE REGULATED AND APPROVED BY THE STATE.
1953 3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
1954 ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
1955 INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
1956 FLORIDA LEGISLATURE.
1957 4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
1958 CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
1959 STATE OF FLORIDA.
1960
1961 b. The corporation must require, if it has established the
1962 Citizens account pursuant to sub-subparagraph (b)2.b., that the
1963 agent obtain from an applicant for coverage from the corporation
1964 the following acknowledgment signed by the applicant, which
1965 includes, at a minimum, the following statement:
1966
1967 ACKNOWLEDGMENT OF POTENTIAL SURCHARGE
1968 AND ASSESSMENT LIABILITY:
1969
1970 1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
1971 CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
1972 DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
1973 MY POLICY COULD BE SUBJECT TO SURCHARGES AND ASSESSMENTS, WHICH
1974 WILL BE DUE AND PAYABLE UPON RENEWAL, CANCELLATION, OR
1975 TERMINATION OF THE POLICY, AND THAT THE SURCHARGES AND
1976 ASSESSMENTS COULD BE AS HIGH AS 25 PERCENT OF MY PREMIUM, OR A
1977 DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA LEGISLATURE.
1978 2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
1979 SURCHARGE, WHICH COULD BE AS HIGH AS 15 PERCENT OF MY PREMIUM,
1980 BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND THAT TO
1981 BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN
1982 PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR RENEWING COVERAGE
1983 WITH CITIZENS. I UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES
1984 ARE REGULATED AND APPROVED BY THE STATE.
1985 3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
1986 ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
1987 INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
1988 FLORIDA LEGISLATURE.
1989 4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
1990 CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
1991 STATE OF FLORIDA.
1992
1993 b.c. The corporation shall maintain, in electronic format
1994 or otherwise, a copy of the applicant’s signed acknowledgment
1995 and provide a copy of the statement to the policyholder as part
1996 of the first renewal after the effective date of sub
1997 subparagraph a. or sub-subparagraph b., as applicable.
1998 c.d. The signed acknowledgment form creates a conclusive
1999 presumption that the policyholder understood and accepted his or
2000 her potential surcharge and assessment liability as a
2001 policyholder of the corporation.
2002 (e) The corporation is subject to s. 287.057 for the
2003 purchase of commodities and contractual services except as
2004 otherwise provided in this paragraph. Services provided by
2005 tradepersons or technical experts to assist a licensed adjuster
2006 in the evaluation of individual claims are not subject to the
2007 procurement requirements of this section. Additionally, the
2008 procurement of financial services providers and underwriters
2009 must be made pursuant to s. 627.3513. Contracts for goods or
2010 services valued at or more than $100,000 are subject to approval
2011 by the board.
2012 1. The corporation is an agency for purposes of s. 287.057,
2013 except that, for purposes of s. 287.057(24), the corporation is
2014 an eligible user.
2015 a. The authority of the Department of Management Services
2016 and the Chief Financial Officer under s. 287.057 extends to the
2017 corporation as if the corporation were an agency.
2018 b. The executive director of the corporation is the agency
2019 head under s. 287.057, except for resolution of bid protests for
2020 which the board would serve as the agency head. The executive
2021 director of the corporation may assign or appoint a designee to
2022 act on his or her behalf.
2023 2. The corporation must provide notice of a decision or
2024 intended decision concerning a solicitation, contract award, or
2025 exceptional purchase by electronic posting. Such notice must
2026 contain the following statement: “Failure to file a protest
2027 within the time prescribed in this section constitutes a waiver
2028 of proceedings.”
2029 a. A person adversely affected by the corporation’s
2030 decision or intended decision to award a contract pursuant to s.
2031 287.057(1) or (3)(c) who elects to challenge the decision must
2032 file a written notice of protest with the executive director of
2033 the corporation within 72 hours after the corporation posts a
2034 notice of its decision or intended decision. For a protest of
2035 the terms, conditions, and specifications contained in a
2036 solicitation, including provisions governing the methods for
2037 ranking bids, proposals, replies, awarding contracts, reserving
2038 rights of further negotiation, or modifying or amending any
2039 contract, the notice of protest must be filed in writing within
2040 72 hours after posting the solicitation. Saturdays, Sundays, and
2041 state holidays are excluded in the computation of the 72-hour
2042 time period.
2043 b. A formal written protest must be filed within 10 days
2044 after the date the notice of protest is filed. The formal
2045 written protest must state with particularity the facts and law
2046 upon which the protest is based. Upon receipt of a formal
2047 written protest that has been timely filed, the corporation must
2048 stop the solicitation or contract award process until the
2049 subject of the protest is resolved by final board action unless
2050 the executive director sets forth in writing particular facts
2051 and circumstances that require the continuance of the
2052 solicitation or contract award process without delay in order to
2053 avoid an immediate and serious danger to the public health,
2054 safety, or welfare.
2055 (I) The corporation must provide an opportunity to resolve
2056 the protest by mutual agreement between the parties within 7
2057 business days after receipt of the formal written protest.
2058 (II) If the subject of a protest is not resolved by mutual
2059 agreement within 7 business days, the corporation’s board must
2060 transmit the protest to the Division of Administrative Hearings
2061 and contract with the division to conduct a hearing to determine
2062 the merits of the protest and to issue a recommended order. The
2063 contract must provide for the corporation to reimburse the
2064 division for any costs incurred by the division for court
2065 reporters, transcript preparation, travel, facility rental, and
2066 other customary hearing costs in the manner set forth in s.
2067 120.65(9). The division has jurisdiction to determine the facts
2068 and law concerning the protest and to issue a recommended order.
2069 The division’s rules and procedures apply to these proceedings;
2070 the division’s applicable bond requirements do not apply. The
2071 protest must be heard by the division at a publicly noticed
2072 meeting in accordance with procedures established by the
2073 division.
2074 c. In a protest of an invitation-to-bid or request-for
2075 proposals procurement, submissions made after the bid or
2076 proposal opening which amend or supplement the bid or proposal
2077 may not be considered. In protesting an invitation-to-negotiate
2078 procurement, submissions made after the corporation announces
2079 its intent to award a contract, reject all replies, or withdraw
2080 the solicitation that amends or supplements the reply may not be
2081 considered. Unless otherwise provided by law, the burden of
2082 proof rests with the party protesting the corporation’s action.
2083 In a competitive-procurement protest, other than a rejection of
2084 all bids, proposals, or replies, the administrative law judge
2085 must conduct a de novo proceeding to determine whether the
2086 corporation’s proposed action is contrary to the corporation’s
2087 governing statutes, the corporation’s rules or policies, or the
2088 solicitation specifications. The standard of proof for the
2089 proceeding is whether the corporation’s action was clearly
2090 erroneous, contrary to competition, arbitrary, or capricious. In
2091 any bid-protest proceeding contesting an intended corporation
2092 action to reject all bids, proposals, or replies, the standard
2093 of review by the board is whether the corporation’s intended
2094 action is illegal, arbitrary, dishonest, or fraudulent.
2095 d. Failure to file a notice of protest or failure to file a
2096 formal written protest constitutes a waiver of proceedings.
2097 3. The board, acting as agency head or his or her designee,
2098 shall consider the recommended order of an administrative law
2099 judge in a public meeting and take final action on the protest.
2100 Any further legal remedy lies with the First District Court of
2101 Appeal.
2102 (n)1. Rates for coverage provided by the corporation must
2103 be actuarially sound pursuant to s. 627.062 and not competitive
2104 with approved rates charged in the admitted voluntary market so
2105 that the corporation functions as a residual market mechanism to
2106 provide insurance only when insurance cannot be procured in the
2107 voluntary market, except as otherwise provided in this
2108 paragraph. The office shall provide the corporation such
2109 information as would be necessary to determine whether rates are
2110 competitive.
2111
2112 The corporation shall file its recommended rates with the office
2113 at least annually. The corporation shall provide any additional
2114 information regarding the rates which the office requires. The
2115 office shall consider the recommendations of the board and issue
2116 a final order establishing the rates for the corporation within
2117 45 days after the recommended rates are filed. The corporation
2118 may not pursue an administrative challenge or judicial review of
2119 the final order of the office.
2120 2. In addition to the rates otherwise determined pursuant
2121 to this paragraph, the corporation shall impose and collect an
2122 amount equal to the premium tax provided in s. 624.509 to
2123 augment the financial resources of the corporation.
2124 3. After the public hurricane loss-projection model under
2125 s. 627.06281 has been found to be accurate and reliable by the
2126 Florida Commission on Hurricane Loss Projection Methodology, the
2127 model shall be considered when establishing the windstorm
2128 portion of the corporation’s rates. The corporation may use the
2129 public model results in combination with the results of private
2130 models to calculate rates for the windstorm portion of the
2131 corporation’s rates. This subparagraph does not require or allow
2132 the corporation to adopt rates lower than the rates otherwise
2133 required or allowed by this paragraph.
2134 4. The corporation must make a recommended actuarially
2135 sound rate filing for each personal and commercial line of
2136 business it writes.
2137 5. Notwithstanding the board’s recommended rates and the
2138 office’s final order regarding the corporation’s filed rates
2139 under subparagraph 1., the corporation shall annually implement
2140 a rate increase which, except for sinkhole coverage, does not
2141 exceed the following for any single policy issued by the
2142 corporation, excluding coverage changes and surcharges:
2143 a. Twelve percent for 2023.
2144 b. Thirteen percent for 2024.
2145 b.c. Fourteen percent for 2025.
2146 c.d. Fifteen percent for 2026 and all subsequent years.
2147 6. The corporation may also implement an increase to
2148 reflect the effect on the corporation of the cash buildup factor
2149 pursuant to s. 215.555(5)(b).
2150 7. The corporation’s implementation of rates as prescribed
2151 in subparagraphs 5. and 8. shall cease for any line of business
2152 written by the corporation upon the corporation’s implementation
2153 of actuarially sound rates. Thereafter, the corporation shall
2154 annually make a recommended actuarially sound rate filing that
2155 is not competitive with approved rates in the admitted voluntary
2156 market for each commercial and personal line of business the
2157 corporation writes.
2158 8. The following new or renewal personal lines policies
2159 written on or after November 1, 2023, are not subject to the
2160 rate increase limitations in subparagraph 5., but may not be
2161 charged more than 50 percent above, and may not be charged nor
2162 less than, the prior year’s established rate for the
2163 corporation:
2164 a. Policies that do not cover a primary residence;
2165 b. New policies under which the coverage for the insured
2166 risk, before the date of application with the corporation, was
2167 last provided by an insurer determined by the office to be
2168 unsound or an insurer placed in receivership under chapter 631;
2169 or
2170 c. Subsequent renewals of those policies, including the new
2171 policies in sub-subparagraph b., under which the coverage for
2172 the insured risk, before the date of application with the
2173 corporation, was last provided by an insurer determined by the
2174 office to be unsound or an insurer placed in receivership under
2175 chapter 631.
2176 9. As used in this paragraph, the term “primary residence”
2177 means the dwelling that is the policyholder’s primary home or is
2178 a rental property that is the primary home of the tenant, and
2179 which the policyholder or tenant occupies for more than 9 months
2180 of each year.
2181 (o) If coverage in an account, or the Citizens account if
2182 established by the corporation, is deactivated pursuant to
2183 paragraph (p), coverage through the corporation shall be
2184 reactivated by order of the office only under one of the
2185 following circumstances:
2186 1. If the market assistance plan receives a minimum of 100
2187 applications for coverage within a 3-month period, or 200
2188 applications for coverage within a 1-year period or less for
2189 residential coverage, unless the market assistance plan provides
2190 a quotation from authorized admitted carriers at their approved
2191 filed rates for at least 90 percent of such applicants. Any
2192 market assistance plan application that is rejected because an
2193 individual risk is so hazardous as to be uninsurable using the
2194 criteria specified in subparagraph (c)8. shall not be included
2195 in the minimum percentage calculation provided herein. In the
2196 event that there is a legal or administrative challenge to a
2197 determination by the office that the conditions of this
2198 subparagraph have been met for eligibility for coverage in the
2199 corporation, any eligible risk may obtain coverage during the
2200 pendency of such challenge.
2201 2. In response to a state of emergency declared by the
2202 Governor under s. 252.36, the office may activate coverage by
2203 order for the period of the emergency upon a finding by the
2204 office that the emergency significantly affects the availability
2205 of residential property insurance.
2206 (p)1. The corporation shall file with the office quarterly
2207 statements of financial condition, an annual statement of
2208 financial condition, and audited financial statements in the
2209 manner prescribed by law. In addition, the corporation shall
2210 report to the office monthly on the types, premium, exposure,
2211 and distribution by county of its policies in force, and shall
2212 submit other reports as the office requires to carry out its
2213 oversight of the corporation.
2214 2. The activities of the corporation shall be reviewed at
2215 least annually by the office to determine whether coverage shall
2216 be deactivated in an account, or in the Citizens account if
2217 established by the corporation, on the basis that the conditions
2218 giving rise to its activation no longer exist.
2219 (q)1. The corporation shall certify to the office its needs
2220 for annual assessments as to a particular calendar year, and for
2221 any interim assessments that it deems to be necessary to sustain
2222 operations as to a particular year pending the receipt of annual
2223 assessments. Upon verification, the office shall approve such
2224 certification, and the corporation shall levy such annual or
2225 interim assessments. Such assessments shall be prorated, if
2226 authority to levy exists, as provided in paragraph (b). The
2227 corporation shall take all reasonable and prudent steps
2228 necessary to collect the amount of assessments due from each
2229 assessable insurer, including, if prudent, filing suit to
2230 collect the assessments, and the office may provide such
2231 assistance to the corporation it deems appropriate. If the
2232 corporation is unable to collect an assessment from any
2233 assessable insurer, the uncollected assessments shall be levied
2234 as an additional assessment against the assessable insurers and
2235 any assessable insurer required to pay an additional assessment
2236 as a result of such failure to pay shall have a cause of action
2237 against such nonpaying assessable insurer. Assessments shall be
2238 included as an appropriate factor in the making of rates. The
2239 failure of a surplus lines agent to collect and remit any
2240 regular or emergency assessment levied by the corporation is
2241 considered to be a violation of s. 626.936 and subjects the
2242 surplus lines agent to the penalties provided in that section.
2243 2. The governing body of any unit of local government, any
2244 residents of which are insured by the corporation, may issue
2245 bonds as defined in s. 125.013 or s. 166.101 from time to time
2246 to fund an assistance program, in conjunction with the
2247 corporation, for the purpose of defraying deficits of the
2248 corporation. In order to avoid needless and indiscriminate
2249 proliferation, duplication, and fragmentation of such assistance
2250 programs, any unit of local government, any residents of which
2251 are insured by the corporation, may provide for the payment of
2252 losses, regardless of whether or not the losses occurred within
2253 or outside of the territorial jurisdiction of the local
2254 government. Revenue bonds under this subparagraph may not be
2255 issued until validated pursuant to chapter 75, unless a state of
2256 emergency is declared by executive order or proclamation of the
2257 Governor pursuant to s. 252.36 making such findings as are
2258 necessary to determine that it is in the best interests of, and
2259 necessary for, the protection of the public health, safety, and
2260 general welfare of residents of this state and declaring it an
2261 essential public purpose to permit certain municipalities or
2262 counties to issue such bonds as will permit relief to claimants
2263 and policyholders of the corporation. Any such unit of local
2264 government may enter into such contracts with the corporation
2265 and with any other entity created pursuant to this subsection as
2266 are necessary to carry out this paragraph. Any bonds issued
2267 under this subparagraph shall be payable from and secured by
2268 moneys received by the corporation from emergency assessments
2269 under sub-subparagraph (b)3.c. (b)3.e., and assigned and pledged
2270 to or on behalf of the unit of local government for the benefit
2271 of the holders of such bonds. The funds, credit, property, and
2272 taxing power of the state or of the unit of local government
2273 shall not be pledged for the payment of such bonds.
2274 3.a. The corporation shall adopt one or more programs
2275 subject to approval by the office for the reduction of both new
2276 and renewal writings in the corporation. Beginning January 1,
2277 2008, any program the corporation adopts for the payment of
2278 bonuses to an insurer for each risk the insurer removes from the
2279 corporation shall comply with s. 627.3511(2) and may not exceed
2280 the amount referenced in s. 627.3511(2) for each risk removed.
2281 The corporation may consider any prudent and not unfairly
2282 discriminatory approach to reducing corporation writings, and
2283 may adopt a credit against assessment liability or other
2284 liability that provides an incentive for insurers to take risks
2285 out of the corporation and to keep risks out of the corporation
2286 by maintaining or increasing voluntary writings in counties or
2287 areas in which corporation risks are highly concentrated and a
2288 program to provide a formula under which an insurer voluntarily
2289 taking risks out of the corporation by maintaining or increasing
2290 voluntary writings will be relieved wholly or partially from
2291 assessments under sub-subparagraph (b)3.a. In addition, in the
2292 event policies are taken out by an approved surplus lines
2293 insurer, such insurer’s assessable insureds may also be relieved
2294 wholly or partially from assessments. However, any “take-out
2295 bonus” or payment to an insurer must be conditioned on the
2296 property being insured for at least 5 years by the insurer,
2297 unless canceled or nonrenewed by the policyholder. If the policy
2298 is canceled or nonrenewed by the policyholder before the end of
2299 the 5-year period, the amount of the take-out bonus must be
2300 prorated for the time period the policy was insured. When the
2301 corporation enters into a contractual agreement for a take-out
2302 plan, the producing agent of record of the corporation policy is
2303 entitled to retain any unearned commission on such policy, and
2304 the insurer shall either:
2305 (I) Pay to the producing agent of record of the policy, for
2306 the first year, an amount which is the greater of the insurer’s
2307 usual and customary commission for the type of policy written or
2308 a policy fee equal to the usual and customary commission of the
2309 corporation; or
2310 (II) Offer to allow the producing agent of record of the
2311 policy to continue servicing the policy for a period of not less
2312 than 1 year and offer to pay the agent the insurer’s usual and
2313 customary commission for the type of policy written. If the
2314 producing agent is unwilling or unable to accept appointment by
2315 the new insurer, the new insurer shall pay the agent in
2316 accordance with sub-sub-subparagraph (I).
2317 b. Any credit or exemption from regular assessments adopted
2318 under this subparagraph shall last no longer than the 3 years
2319 following the cancellation or expiration of the policy by the
2320 corporation. With the approval of the office, the board may
2321 extend such credits for an additional year if the insurer
2322 guarantees an additional year of renewability for all policies
2323 removed from the corporation, or for 2 additional years if the
2324 insurer guarantees 2 additional years of renewability for all
2325 policies so removed.
2326 c. There shall be no credit, limitation, exemption, or
2327 deferment from emergency assessments to be collected from
2328 policyholders pursuant to sub-subparagraph (b)3.c. sub
2329 subparagraph (b)3.e. or sub-subparagraph (b)5.c.
2330 4. The plan shall provide for the deferment, in whole or in
2331 part, of the assessment of an assessable insurer, other than an
2332 emergency assessment collected from policyholders pursuant to
2333 sub-subparagraph (b)3.e. or sub-subparagraph (b)5.c., if the
2334 office finds that payment of the assessment would endanger or
2335 impair the solvency of the insurer. In the event an assessment
2336 against an assessable insurer is deferred in whole or in part,
2337 the amount by which such assessment is deferred may be assessed
2338 against the other assessable insurers in a manner consistent
2339 with the basis for assessments set forth in paragraph (b).
2340 5. Effective July 1, 2007, in order to evaluate the costs
2341 and benefits of approved take-out plans, if the corporation pays
2342 a bonus or other payment to an insurer for an approved take-out
2343 plan, it shall maintain a record of the address or such other
2344 identifying information on the property or risk removed in order
2345 to track if and when the property or risk is later insured by
2346 the corporation.
2347 5.6. Any policy taken out, assumed, or removed from the
2348 corporation is, as of the effective date of the take-out,
2349 assumption, or removal, direct insurance issued by the insurer
2350 and not by the corporation, even if the corporation continues to
2351 service the policies. This subparagraph applies to policies of
2352 the corporation and not policies taken out, assumed, or removed
2353 from any other entity.
2354 6.7. For a policy taken out, assumed, or removed from the
2355 corporation, the insurer may, for a period of no more than 3
2356 years, continue to use any of the corporation’s policy forms or
2357 endorsements that apply to the policy taken out, removed, or
2358 assumed without obtaining approval from the office for use of
2359 such policy form or endorsement.
2360 (v)1. Effective July 1, 2002, policies of the Residential
2361 Property and Casualty Joint Underwriting Association become
2362 policies of the corporation. All obligations, rights, assets and
2363 liabilities of the association, including bonds, note and debt
2364 obligations, and the financing documents pertaining to them
2365 become those of the corporation as of July 1, 2002. The
2366 corporation is not required to issue endorsements or
2367 certificates of assumption to insureds during the remaining term
2368 of in-force transferred policies.
2369 2. Effective July 1, 2002, policies of the Florida
2370 Windstorm Underwriting Association are transferred to the
2371 corporation and become policies of the corporation. All
2372 obligations, rights, assets, and liabilities of the association,
2373 including bonds, note and debt obligations, and the financing
2374 documents pertaining to them are transferred to and assumed by
2375 the corporation on July 1, 2002. The corporation is not required
2376 to issue endorsements or certificates of assumption to insureds
2377 during the remaining term of in-force transferred policies.
2378 3. The Florida Windstorm Underwriting Association and the
2379 Residential Property and Casualty Joint Underwriting Association
2380 shall take all actions necessary to further evidence the
2381 transfers and provide the documents and instruments of further
2382 assurance as may reasonably be requested by the corporation for
2383 that purpose. The corporation shall execute assumptions and
2384 instruments as the trustees or other parties to the financing
2385 documents of the Florida Windstorm Underwriting Association or
2386 the Residential Property and Casualty Joint Underwriting
2387 Association may reasonably request to further evidence the
2388 transfers and assumptions, which transfers and assumptions,
2389 however, are effective on the date provided under this paragraph
2390 whether or not, and regardless of the date on which, the
2391 assumptions or instruments are executed by the corporation.
2392 Subject to the relevant financing documents pertaining to their
2393 outstanding bonds, notes, indebtedness, or other financing
2394 obligations, the moneys, investments, receivables, choses in
2395 action, and other intangibles of the Florida Windstorm
2396 Underwriting Association shall be credited to the coastal
2397 account of the corporation, and those of the personal lines
2398 residential coverage account and the commercial lines
2399 residential coverage account of the Residential Property and
2400 Casualty Joint Underwriting Association shall be credited to the
2401 personal lines account and the commercial lines account,
2402 respectively, of the corporation.
2403 4. Effective July 1, 2002, a new applicant for property
2404 insurance coverage who would otherwise have been eligible for
2405 coverage in the Florida Windstorm Underwriting Association is
2406 eligible for coverage from the corporation as provided in this
2407 subsection.
2408 5. The transfer of all policies, obligations, rights,
2409 assets, and liabilities from the Florida Windstorm Underwriting
2410 Association to the corporation and the renaming of the
2411 Residential Property and Casualty Joint Underwriting Association
2412 as the corporation does not affect the coverage with respect to
2413 covered policies as defined in s. 215.555(2)(c) provided to
2414 these entities by the Florida Hurricane Catastrophe Fund. The
2415 coverage provided by the fund to the Florida Windstorm
2416 Underwriting Association based on its exposures as of June 30,
2417 2002, and each June 30 thereafter, unless the corporation has
2418 established the Citizens account, shall be redesignated as
2419 coverage for the coastal account of the corporation.
2420 Notwithstanding any other provision of law, the coverage
2421 provided by the fund to the Residential Property and Casualty
2422 Joint Underwriting Association based on its exposures as of June
2423 30, 2002, and each June 30 thereafter, unless the corporation
2424 has established the Citizens account, shall be transferred to
2425 the personal lines account and the commercial lines account of
2426 the corporation. Notwithstanding any other provision of law, the
2427 coastal account, unless the corporation has established the
2428 Citizens account, shall be treated, for all Florida Hurricane
2429 Catastrophe Fund purposes, as if it were a separate
2430 participating insurer with its own exposures, reimbursement
2431 premium, and loss reimbursement. Likewise, the personal lines
2432 and commercial lines accounts, unless the corporation has
2433 established the Citizens account, shall be viewed together, for
2434 all fund purposes, as if the two accounts were one and represent
2435 a single, separate participating insurer with its own exposures,
2436 reimbursement premium, and loss reimbursement. The coverage
2437 provided by the fund to the corporation shall constitute and
2438 operate as a full transfer of coverage from the Florida
2439 Windstorm Underwriting Association and Residential Property and
2440 Casualty Joint Underwriting Association to the corporation.
2441 (w) Notwithstanding any other provision of law:
2442 1. The pledge or sale of, the lien upon, and the security
2443 interest in any rights, revenues, or other assets of the
2444 corporation created or purported to be created pursuant to any
2445 financing documents to secure any bonds or other indebtedness of
2446 the corporation shall be and remain valid and enforceable,
2447 notwithstanding the commencement of and during the continuation
2448 of, and after, any rehabilitation, insolvency, liquidation,
2449 bankruptcy, receivership, conservatorship, reorganization, or
2450 similar proceeding against the corporation under the laws of
2451 this state.
2452 2. The proceeding does not relieve the corporation of its
2453 obligation, or otherwise affect its ability to perform its
2454 obligation, to continue to collect, or levy and collect,
2455 assessments, policyholder surcharges or other surcharges under
2456 sub-subparagraph (b)3.j., or any other rights, revenues, or
2457 other assets of the corporation pledged pursuant to any
2458 financing documents.
2459 3. Each such pledge or sale of, lien upon, and security
2460 interest in, including the priority of such pledge, lien, or
2461 security interest, any such assessments, policyholder surcharges
2462 or other surcharges, or other rights, revenues, or other assets
2463 which are collected, or levied and collected, after the
2464 commencement of and during the pendency of, or after, any such
2465 proceeding shall continue unaffected by such proceeding. As used
2466 in this subsection, the term “financing documents” means any
2467 agreement or agreements, instrument or instruments, or other
2468 document or documents now existing or hereafter created
2469 evidencing any bonds or other indebtedness of the corporation or
2470 pursuant to which any such bonds or other indebtedness has been
2471 or may be issued and pursuant to which any rights, revenues, or
2472 other assets of the corporation are pledged or sold to secure
2473 the repayment of such bonds or indebtedness, together with the
2474 payment of interest on such bonds or such indebtedness, or the
2475 payment of any other obligation or financial product, as defined
2476 in the plan of operation of the corporation related to such
2477 bonds or indebtedness.
2478 4. Any such pledge or sale of assessments, revenues,
2479 contract rights, or other rights or assets of the corporation
2480 shall constitute a lien and security interest, or sale, as the
2481 case may be, that is immediately effective and attaches to such
2482 assessments, revenues, or contract rights or other rights or
2483 assets, whether or not imposed or collected at the time the
2484 pledge or sale is made. Any such pledge or sale is effective,
2485 valid, binding, and enforceable against the corporation or other
2486 entity making such pledge or sale, and valid and binding against
2487 and superior to any competing claims or obligations owed to any
2488 other person or entity, including policyholders in this state,
2489 asserting rights in any such assessments, revenues, or contract
2490 rights or other rights or assets to the extent set forth in and
2491 in accordance with the terms of the pledge or sale contained in
2492 the applicable financing documents, whether or not any such
2493 person or entity has notice of such pledge or sale and without
2494 the need for any physical delivery, recordation, filing, or
2495 other action.
2496 5. As long as the corporation has any bonds outstanding,
2497 the corporation may not file a voluntary petition under chapter
2498 9 of the federal Bankruptcy Code or such corresponding chapter
2499 or sections as may be in effect, from time to time, and a public
2500 officer or any organization, entity, or other person may not
2501 authorize the corporation to be or become a debtor under chapter
2502 9 of the federal Bankruptcy Code or such corresponding chapter
2503 or sections as may be in effect, from time to time, during any
2504 such period.
2505 6. If ordered by a court of competent jurisdiction, the
2506 corporation may assume policies or otherwise provide coverage
2507 for policyholders of an insurer placed in liquidation under
2508 chapter 631, under such forms, rates, terms, and conditions as
2509 the corporation deems appropriate, subject to approval by the
2510 office.
2511 (x)1. The following records of the corporation are
2512 confidential and exempt from the provisions of s. 119.07(1) and
2513 s. 24(a), Art. I of the State Constitution:
2514 a. Underwriting files, except that a policyholder or an
2515 applicant shall have access to his or her own underwriting
2516 files. Confidential and exempt underwriting file records may
2517 also be released to other governmental agencies upon written
2518 request and demonstration of need; such records held by the
2519 receiving agency remain confidential and exempt as provided
2520 herein.
2521 b. Claims files, until termination of all litigation and
2522 settlement of all claims arising out of the same incident,
2523 although portions of the claims files may remain exempt, as
2524 otherwise provided by law. Confidential and exempt claims file
2525 records may be released to other governmental agencies upon
2526 written request and demonstration of need; such records held by
2527 the receiving agency remain confidential and exempt as provided
2528 herein.
2529 c. Records obtained or generated by an internal auditor
2530 pursuant to a routine audit, until the audit is completed, or if
2531 the audit is conducted as part of an investigation, until the
2532 investigation is closed or ceases to be active. An investigation
2533 is considered “active” while the investigation is being
2534 conducted with a reasonable, good faith belief that it could
2535 lead to the filing of administrative, civil, or criminal
2536 proceedings.
2537 d. Matters reasonably encompassed in privileged attorney
2538 client communications.
2539 e. Proprietary information licensed to the corporation
2540 under contract and the contract provides for the confidentiality
2541 of such proprietary information.
2542 f. All information relating to the medical condition or
2543 medical status of a corporation employee which is not relevant
2544 to the employee’s capacity to perform his or her duties, except
2545 as otherwise provided in this paragraph. Information that is
2546 exempt shall include, but is not limited to, information
2547 relating to workers’ compensation, insurance benefits, and
2548 retirement or disability benefits.
2549 g. Upon an employee’s entrance into the employee assistance
2550 program, a program to assist any employee who has a behavioral
2551 or medical disorder, substance abuse problem, or emotional
2552 difficulty that affects the employee’s job performance, all
2553 records relative to that participation shall be confidential and
2554 exempt from the provisions of s. 119.07(1) and s. 24(a), Art. I
2555 of the State Constitution, except as otherwise provided in s.
2556 112.0455(11).
2557 h. Information relating to negotiations for financing,
2558 reinsurance, depopulation, or contractual services, until the
2559 conclusion of the negotiations.
2560 i. Minutes of closed meetings regarding underwriting files,
2561 and minutes of closed meetings regarding an open claims file
2562 until termination of all litigation and settlement of all claims
2563 with regard to that claim, except that information otherwise
2564 confidential or exempt by law shall be redacted.
2565 2. If an authorized insurer is considering underwriting a
2566 risk insured by the corporation, relevant underwriting files and
2567 confidential claims files may be released to the insurer
2568 provided the insurer agrees in writing, notarized and under
2569 oath, to maintain the confidentiality of such files. If a file
2570 is transferred to an insurer, that file is no longer a public
2571 record because it is not held by an agency subject to the
2572 provisions of the public records law. Underwriting files and
2573 confidential claims files may also be released to staff and the
2574 board of governors of the market assistance plan established
2575 pursuant to s. 627.3515, who must retain the confidentiality of
2576 such files, except such files may be released to authorized
2577 insurers that are considering assuming the risks to which the
2578 files apply, provided the insurer agrees in writing, notarized
2579 and under oath, to maintain the confidentiality of such files.
2580 Finally, the corporation or the board or staff of the market
2581 assistance plan may make the following information obtained from
2582 underwriting files and confidential claims files available to an
2583 entity that has obtained a permit to become an authorized
2584 insurer, a reinsurer that may provide reinsurance under s.
2585 624.610, a licensed reinsurance broker, a licensed rating
2586 organization, a modeling company, a licensed surplus lines
2587 agent, or a licensed general lines insurance agent: name,
2588 address, and telephone number of the residential property owner
2589 or insured; location of the risk; rating information; loss
2590 history; and policy type. The receiving person must retain the
2591 confidentiality of the information received and may use the
2592 information only for the purposes of developing a take-out plan
2593 or a rating plan to be submitted to the office for approval or
2594 otherwise analyzing the underwriting of a risk or risks insured
2595 by the corporation on behalf of the private insurance market. A
2596 licensed surplus lines agent or licensed general lines insurance
2597 agent may not use such information for the direct solicitation
2598 of policyholders.
2599 3. A policyholder who has filed suit against the
2600 corporation has the right to discover the contents of his or her
2601 own claims file to the same extent that discovery of such
2602 contents would be available from a private insurer in litigation
2603 as provided by the Florida Rules of Civil Procedure, the Florida
2604 Evidence Code, and other applicable law. Pursuant to subpoena, a
2605 third party has the right to discover the contents of an
2606 insured’s or applicant’s underwriting or claims file to the same
2607 extent that discovery of such contents would be available from a
2608 private insurer by subpoena as provided by the Florida Rules of
2609 Civil Procedure, the Florida Evidence Code, and other applicable
2610 law, and subject to any confidentiality protections requested by
2611 the corporation and agreed to by the seeking party or ordered by
2612 the court. The corporation may release confidential underwriting
2613 and claims file contents and information as it deems necessary
2614 and appropriate to underwrite or service insurance policies and
2615 claims, subject to any confidentiality protections deemed
2616 necessary and appropriate by the corporation.
2617 4. Portions of meetings of the corporation are exempt from
2618 the provisions of s. 286.011 and s. 24(b), Art. I of the State
2619 Constitution wherein confidential underwriting files or
2620 confidential open claims files are discussed. All portions of
2621 corporation meetings which are closed to the public shall be
2622 recorded by a court reporter. The court reporter shall record
2623 the times of commencement and termination of the meeting, all
2624 discussion and proceedings, the names of all persons present at
2625 any time, and the names of all persons speaking. No portion of
2626 any closed meeting shall be off the record. Subject to the
2627 provisions hereof and s. 119.07(1)(d)-(f), the court reporter’s
2628 notes of any closed meeting shall be retained by the corporation
2629 for a minimum of 5 years. A copy of the transcript, less any
2630 exempt matters, of any closed meeting wherein claims are
2631 discussed shall become public as to individual claims after
2632 settlement of the claim.
2633 (z) In enacting the provisions of this section, the
2634 Legislature recognizes that both the Florida Windstorm
2635 Underwriting Association and the Residential Property and
2636 Casualty Joint Underwriting Association have entered into
2637 financing arrangements that obligate each entity to service its
2638 debts and maintain the capacity to repay funds secured under
2639 these financing arrangements. It is the intent of the
2640 Legislature that nothing in this section be construed to
2641 compromise, diminish, or interfere with the rights of creditors
2642 under such financing arrangements. It is further the intent of
2643 the Legislature to preserve the obligations of the Florida
2644 Windstorm Underwriting Association and Residential Property and
2645 Casualty Joint Underwriting Association with regard to
2646 outstanding financing arrangements, with such obligations
2647 passing entirely and unchanged to the corporation and,
2648 specifically, to the Citizens applicable account of the
2649 corporation. So long as any bonds, notes, indebtedness, or other
2650 financing obligations of the Florida Windstorm Underwriting
2651 Association or the Residential Property and Casualty Joint
2652 Underwriting Association are outstanding, under the terms of the
2653 financing documents pertaining to them, the governing board of
2654 the corporation shall have and shall exercise the authority to
2655 levy, charge, collect, and receive all premiums, assessments,
2656 surcharges, charges, revenues, and receipts that the
2657 associations had authority to levy, charge, collect, or receive
2658 under the provisions of subsection (2) and this subsection,
2659 respectively, as they existed on January 1, 2002, to provide
2660 moneys, without exercise of the authority provided by this
2661 subsection, in at least the amounts, and by the times, as would
2662 be provided under those former provisions of subsection (2) or
2663 this subsection, respectively, so that the value, amount, and
2664 collectability of any assets, revenues, or revenue source
2665 pledged or committed to, or any lien thereon securing such
2666 outstanding bonds, notes, indebtedness, or other financing
2667 obligations will not be diminished, impaired, or adversely
2668 affected by the amendments made by this act and to permit
2669 compliance with all provisions of financing documents pertaining
2670 to such bonds, notes, indebtedness, or other financing
2671 obligations, or the security or credit enhancement for them, and
2672 any reference in this subsection to bonds, notes, indebtedness,
2673 financing obligations, or similar obligations, of the
2674 corporation shall include like instruments or contracts of the
2675 Florida Windstorm Underwriting Association and the Residential
2676 Property and Casualty Joint Underwriting Association to the
2677 extent not inconsistent with the provisions of the financing
2678 documents pertaining to them.
2679 (ii) The corporation shall revise the programs adopted
2680 pursuant to sub-subparagraph (q)3.a. for personal lines
2681 residential policies to maximize policyholder options and
2682 encourage increased participation by insurers and agents. After
2683 January 1, 2017, a policy may not be taken out of the
2684 corporation unless the provisions of this paragraph are met.
2685 1. The corporation must publish a periodic schedule of
2686 cycles during which an insurer may identify, and notify the
2687 corporation of, policies that the insurer is requesting to take
2688 out. A request must include a description of the coverage
2689 offered and an estimated premium and must be submitted to the
2690 corporation in a form and manner prescribed by the corporation.
2691 2. The corporation must maintain and make available to the
2692 agent of record a consolidated list of all insurers requesting
2693 to take out a policy. The list must include a description of the
2694 coverage offered and the estimated premium for each take-out
2695 request.
2696 3. If a policyholder receives a take-out offer from an
2697 authorized insurer, the risk is no longer eligible for coverage
2698 with the corporation unless the premium for coverage from the
2699 authorized insurer is more than 20 percent greater than the
2700 renewal premium for comparable coverage from the corporation
2701 pursuant to sub-subparagraph (c)5.c. This subparagraph applies
2702 to take-out offers that are part of an application to
2703 participate in depopulation submitted to the office on or after
2704 January 1, 2023. This subparagraph only applies to a policy that
2705 covers a primary residence.
2706 4. The corporation must provide written notice to the
2707 policyholder and the agent of record regarding all insurers
2708 requesting to take out the policy. The notice must be in a
2709 format prescribed by the corporation and include, for each take
2710 out offer:
2711 a. The amount of the estimated premium;
2712 b. A description of the coverage; and
2713 c. A comparison of the estimated premium and coverage
2714 offered by the insurer to the estimated premium and coverage
2715 provided by the corporation.
2716 (nn) The corporation may share its claims data with the
2717 National Insurance Crime Bureau, provided that the National
2718 Insurance Crime Bureau agrees to maintain the confidentiality of
2719 such documents as otherwise provided for in paragraph (x).
2720 (7) TRADEMARKS, COPYRIGHTS, OR PATENTS.—Notwithstanding any
2721 other law, the corporation is authorized, in its own name, to:
2722 (a) Perform all things necessary to secure letters of
2723 patent, copyrights, or trademarks on any work products and
2724 enforce its rights therein.
2725 (b) License, lease, assign, or otherwise give written
2726 consent to any person, firm, or corporation for the manufacture
2727 or use thereof, on a royalty basis or for such other
2728 consideration as the corporation deems proper.
2729 (c) Take any action necessary, including legal action, to
2730 protect trademarks, copyrights, or patents against improper or
2731 unlawful use or infringement.
2732 (d) Enforce the collection of any sums due the corporation
2733 for the manufacture or use thereof by any other party.
2734 (e) Sell any of its trademarks, copyrights, or patents and
2735 execute all instruments necessary to consummate any such sale.
2736 (f) Do all other acts necessary and proper for the
2737 execution of powers and duties herein conferred upon the
2738 corporation in order to administer this subsection.
2739 Section 2. Paragraphs (a), (b), and (c) of subsection (3)
2740 and paragraphs (d), (e), and (f) of subsection (6) of section
2741 627.3511, Florida Statutes, are amended to read:
2742 627.3511 Depopulation of Citizens Property Insurance
2743 Corporation.—
2744 (3) EXEMPTION FROM DEFICIT ASSESSMENTS.—
2745 (a) The calculation of an insurer’s assessment liability
2746 under s. 627.351(6)(b)3.a. shall, for an insurer that in any
2747 calendar year removes 50,000 or more risks from the Citizens
2748 Property Insurance Corporation, either by issuance of a policy
2749 upon expiration or cancellation of the corporation policy or by
2750 assumption of the corporation’s obligations with respect to in
2751 force policies, exclude such removed policies for the succeeding
2752 3 years, as follows:
2753 1. In the first year following removal of the risks, the
2754 risks are excluded from the calculation to the extent of 100
2755 percent.
2756 2. In the second year following removal of the risks, the
2757 risks are excluded from the calculation to the extent of 75
2758 percent.
2759 3. In the third year following removal of the risks, the
2760 risks are excluded from the calculation to the extent of 50
2761 percent.
2762
2763 If the removal of risks is accomplished through assumption of
2764 obligations with respect to in-force policies, the corporation
2765 shall pay to the assuming insurer all unearned premium with
2766 respect to such policies less any policy acquisition costs
2767 agreed to by the corporation and assuming insurer. The term
2768 “policy acquisition costs” is defined as costs of issuance of
2769 the policy by the corporation which includes agent commissions,
2770 servicing company fees, and premium tax. This paragraph does not
2771 apply to an insurer that, at any time within 5 years before
2772 removing the risks, had a market share in excess of 0.1 percent
2773 of the statewide aggregate gross direct written premium for any
2774 line of property insurance, or to an affiliate of such an
2775 insurer. This paragraph does not apply unless either at least 40
2776 percent of the risks removed from the corporation are located in
2777 Miami-Dade, Broward, and Palm Beach Counties, or at least 30
2778 percent of the risks removed from the corporation are located in
2779 such counties and an additional 50 percent of the risks removed
2780 from the corporation are located in other coastal counties.
2781 (b) An insurer that first wrote personal lines residential
2782 property coverage in this state on or after July 1, 1994, is
2783 exempt from liability regular deficit assessments imposed
2784 pursuant to s. 627.351(6)(b)3.a., but not emergency assessments
2785 collected from policyholders pursuant to s. 627.351(6)(b)3.c. s.
2786 627.351(6)(b)3.e., of the Citizens Property Insurance
2787 Corporation until the earlier of the following:
2788 1. The end of the calendar year in which it first wrote 0.5
2789 percent or more of the statewide aggregate direct written
2790 premium for any line of residential property coverage; or
2791 2. December 31, 1997, or December 31 of the third year in
2792 which it wrote such coverage in this state, whichever is later.
2793 (c) Other than an insurer that is exempt under paragraph
2794 (b), an insurer that in any calendar year increases its total
2795 structure exposure subject to wind coverage by 25 percent or
2796 more over its exposure for the preceding calendar year is, with
2797 respect to that year, exempt from liability deficit assessments
2798 imposed pursuant to s. 627.351(6)(b)3.a., but not from emergency
2799 assessments collected from policyholders pursuant to s.
2800 627.351(6)(b)3.c. s. 627.351(6)(b)3.e., of the Citizens Property
2801 Insurance Corporation attributable to such increase in exposure.
2802 (6) COMMERCIAL RESIDENTIAL TAKE-OUT PLANS.—
2803 (d) The calculation of an insurer’s regular assessment
2804 liability under s. 627.351(6)(b)3.a., but not emergency
2805 assessments collected from policyholders pursuant to s.
2806 627.351(6)(b)3.c. s. 627.351(6)(b)3.e., shall, with respect to
2807 commercial residential policies removed from the corporation
2808 under an approved take-out plan, exclude such removed policies
2809 for the succeeding 3 years, as follows:
2810 1. In the first year following removal of the policies, the
2811 policies are excluded from the calculation to the extent of 100
2812 percent.
2813 2. In the second year following removal of the policies,
2814 the policies are excluded from the calculation to the extent of
2815 75 percent.
2816 3. In the third year following removal of the policies, the
2817 policies are excluded from the calculation to the extent of 50
2818 percent.
2819 (e) An insurer that first wrote commercial residential
2820 property coverage in this state on or after June 1, 1996, is
2821 exempt from liability regular assessments under s.
2822 627.351(6)(b)3.a., but not from emergency assessments collected
2823 from policyholders pursuant to s. 627.351(6)(b)3.c. s.
2824 627.351(6)(b)3.e., with respect to commercial residential
2825 policies until the earlier of:
2826 1. The end of the calendar year in which such insurer first
2827 wrote 0.5 percent or more of the statewide aggregate direct
2828 written premium for commercial residential property coverage; or
2829 2. December 31 of the third year in which such insurer
2830 wrote commercial residential property coverage in this state.
2831 (f) An insurer that is not otherwise exempt from liability
2832 regular assessments under s. 627.351(6)(b)3.a. with respect to
2833 commercial residential policies is, for any calendar year in
2834 which such insurer increased its total commercial residential
2835 hurricane exposure by 25 percent or more over its exposure for
2836 the preceding calendar year, exempt from liability regular
2837 assessments under s. 627.351(6)(b)3.a., but not emergency
2838 assessments collected from policyholders pursuant to s.
2839 627.351(6)(b)3.c. s. 627.351(6)(b)3.e., attributable to such
2840 increased exposure.
2841 Section 3. Subsections (5), (6), and (7) of section
2842 627.3518, Florida Statutes, are amended to read:
2843 627.3518 Citizens Property Insurance Corporation
2844 policyholder eligibility clearinghouse program.—The purpose of
2845 this section is to provide a framework for the corporation to
2846 implement a clearinghouse program by January 1, 2014.
2847 (5) Notwithstanding s. 627.3517, any applicant for new
2848 coverage from the corporation on a primary residence is not
2849 eligible for coverage from the corporation if provided an offer
2850 of coverage from an authorized insurer through the program at a
2851 premium that is at or below the eligibility threshold for
2852 applicants for new coverage established in s. 627.351(6)(c)5.a.
2853 An applicant for new coverage from the corporation on a risk
2854 that is not a primary residence is not eligible for coverage
2855 from the corporation if provided an offer of coverage from an
2856 authorized insurer through the program if such offer would
2857 render the risk ineligible pursuant to s. 627.351(6)(c)5.d.
2858 Whenever an offer of coverage for a personal lines risk that is
2859 a primary residence is received for a policyholder of the
2860 corporation at renewal from an authorized insurer through the
2861 program which is at or below the eligibility threshold for
2862 policyholders of the corporation established in s.
2863 627.351(6)(c)5.a., the risk is not eligible for coverage with
2864 the corporation. Whenever an offer of coverage for a personal
2865 lines risk that is not a primary residence is received for a
2866 policyholder of the corporation at renewal from an authorized
2867 insurer through the program, the risk is not eligible for
2868 coverage with the corporation if such offer would render the
2869 risk ineligible pursuant to s. 627.351(6)(c)5.d. In the event an
2870 offer of coverage on a primary residence for a new applicant is
2871 received from an authorized insurer through the program, and the
2872 premium offered exceeds the eligibility threshold for applicants
2873 for new coverage established in s. 627.351(6)(c)5.a., the
2874 applicant or insured may elect to accept such coverage, or may
2875 elect to accept or continue coverage with the corporation. In
2876 the event an offer of coverage for a personal lines risk that is
2877 a primary residence is received from an authorized insurer at
2878 renewal through the program, and the premium offered exceeds the
2879 eligibility threshold for policyholders of the corporation
2880 established in s. 627.351(6)(c)5.a., the insured may elect to
2881 accept such coverage, or may elect to accept or continue
2882 coverage with the corporation. Section 627.351(6)(c)5.a.(I) does
2883 not apply to an offer of coverage from an authorized insurer
2884 obtained through the program. As used in this subsection, the
2885 term “primary residence” has the same meaning as in s.
2886 627.351(6)(c)2.a.
2887 (6) Independent insurance agents submitting new
2888 applications for coverage or that are the agent of record on a
2889 renewal policy submitted to the program:
2890 (a) Are granted and must maintain ownership and the
2891 exclusive use of expirations, records, or other written or
2892 electronic information directly related to such applications or
2893 renewals written through the corporation or through an insurer
2894 participating in the program, notwithstanding s.
2895 627.351(6)(c)5.a.(I)(B) and (II)(B) or s.
2896 627.351(6)(c)5.d.(I)(B) and (II)(B). Such ownership is granted
2897 for as long as the insured remains with the agency or until sold
2898 or surrendered in writing by the agent. Contracts with the
2899 corporation or required by the corporation must not amend,
2900 modify, interfere with, or limit such rights of ownership. Such
2901 expirations, records, or other written or electronic information
2902 may be used to review an application, issue a policy, or for any
2903 other purpose necessary for placing such business through the
2904 program.
2905 (b) May not be required to be appointed by any insurer
2906 participating in the program for policies written solely through
2907 the program, notwithstanding the provisions of s. 626.112.
2908 (c) May accept an appointment from any insurer
2909 participating in the program.
2910 (d) May enter into either a standard or limited agency
2911 agreement with the insurer, at the insurer’s option.
2912
2913 Applicants ineligible for coverage in accordance with subsection
2914 (5) remain ineligible if their independent agent is unwilling or
2915 unable to enter into a standard or limited agency agreement with
2916 an insurer participating in the program.
2917 (7) Exclusive agents submitting new applications for
2918 coverage or that are the agent of record on a renewal policy
2919 submitted to the program:
2920 (a) Must maintain ownership and the exclusive use of
2921 expirations, records, or other written or electronic information
2922 directly related to such applications or renewals written
2923 through the corporation or through an insurer participating in
2924 the program, notwithstanding s. 627.351(6)(c)5.a.(I)(B) and
2925 (II)(B) or s. 627.351(6)(c)5.d.(I)(B) and (II)(B). Contracts
2926 with the corporation or required by the corporation must not
2927 amend, modify, interfere with, or limit such rights of
2928 ownership. Such expirations, records, or other written or
2929 electronic information may be used to review an application,
2930 issue a policy, or for any other purpose necessary for placing
2931 such business through the program.
2932 (b) May not be required to be appointed by any insurer
2933 participating in the program for policies written solely through
2934 the program, notwithstanding the provisions of s. 626.112.
2935 (c) Must only facilitate the placement of an offer of
2936 coverage from an insurer whose limited servicing agreement is
2937 approved by that exclusive agent’s exclusive insurer.
2938 (d) May enter into a limited servicing agreement with the
2939 insurer making an offer of coverage, and only after the
2940 exclusive agent’s insurer has approved the limited servicing
2941 agreement terms. The exclusive agent’s insurer must approve a
2942 limited service agreement for the program for any insurer for
2943 which it has approved a service agreement for other purposes.
2944
2945 Applicants ineligible for coverage in accordance with subsection
2946 (5) remain ineligible if their exclusive agent is unwilling or
2947 unable to enter into a standard or limited agency agreement with
2948 an insurer making an offer of coverage to that applicant.
2949 Section 4. This act shall take effect July 1, 2024.