Florida Senate - 2024                      CS for CS for SB 1716
       
       
        
       By the Committees on Fiscal Policy; and Banking and Insurance;
       and Senator Boyd
       
       
       
       
       594-03834-24                                          20241716c2
    1                        A bill to be entitled                      
    2         An act relating to Citizens Property Insurance
    3         Corporation; amending s. 627.351, F.S.; revising a
    4         requirement for certain flood insurance; revising
    5         circumstances under which certain insurers’
    6         associations must levy market equalization surcharges
    7         on policyholders; deleting obsolete language;
    8         authorizing the Office of Insurance Regulation to
    9         evaluate whether there is a reasonable degree of
   10         competition within certain zip codes; providing that
   11         certain structures located within certain zip codes
   12         are eligible for coverage from the corporation;
   13         providing that certain accounts for Citizens Property
   14         Insurance Corporation revenues, assets, liabilities,
   15         losses, and expenses are now maintained as the
   16         Citizens account; revising the requirements for
   17         certain coverages by the corporation; requiring the
   18         inclusion of quota share primary insurance in certain
   19         policies; deleting provisions relating to legislative
   20         goals; conforming provisions to changes made by the
   21         act; revising provisions relating to deficits in
   22         certain accounts; revising the definition of the term
   23         “assessments”; deleting provisions relating to
   24         surcharges and regular assessments upon determination
   25         of projected deficits; deleting provisions relating to
   26         funds available to the corporation as sources of
   27         revenue and bonds; deleting definitions; deleting
   28         provisions relating to the duties of the Florida
   29         Surplus Lines Service Office; deleting provisions
   30         relating to disposition of excess amounts of
   31         assessments and surcharges; defining the terms
   32         “approved surplus lines insurer” and “primary
   33         residence”; providing applicability of certain
   34         provisions relating to personal lines residential
   35         risks coverage by the corporation; providing that
   36         certain personal lines residential risks are not
   37         eligible for any policy issued by the corporation;
   38         providing an exception; providing that certain
   39         personal lines residential risks are not eligible for
   40         coverage with the corporation under certain
   41         circumstances; providing an exception; providing that
   42         certain risks are eligible for certain standard
   43         policies; providing that certain risks are eligible
   44         for certain basic polices; requiring the department to
   45         determine the type of policy to be provided on the
   46         basis of certain standards and practices; providing
   47         that certain policyholders do not remain eligible for
   48         coverage from the corporation; requiring the insurer
   49         to pay the producing agent of record a certain amount
   50         or make certain offers under certain circumstances;
   51         providing that the producing agent of record is
   52         entitled to retain certain commission on the policy;
   53         requiring the insurer to pay the producing agent of
   54         record a certain amount or make certain offers under
   55         certain circumstances; revising the corporation’s plan
   56         of operation; revising the required statements from
   57         applicants for coverage; revising the duties of the
   58         executive director of the corporation; authorizing the
   59         executive director to assign and appoint designees;
   60         deleting an applicability provision relating to bond
   61         requirements; revising the personal lines polices that
   62         are not subject to certain rate limitations; deleting
   63         provisions relating to certain insurer assessment
   64         deferments; deleting provisions relating to the
   65         intangibles of and coverage by the Florida Windstorm
   66         Underwriting Association and the corporation coastal
   67         account; authorizing the corporation and certain
   68         persons to make specified information obtained from
   69         underwriting files and confidential claims files
   70         available to licensed surplus lines agents;
   71         prohibiting such agents from using such information
   72         for specified purposes; providing applicability of
   73         provisions relating to take-out offers that are part
   74         of applications to participate in depopulation;
   75         authorizing the corporation to share its claims data
   76         with a specified entity; authorizing the corporation
   77         to take certain actions relating to trademarks,
   78         copyrights, or patents; amending s. 627.3511, F.S.;
   79         conforming provisions to changes made by the act;
   80         conforming cross-references; amending s. 627.3518,
   81         F.S.; revising eligibility requirements for
   82         policyholders at renewal and for applicants for new
   83         coverage; defining the term “primary residence”;
   84         providing effective dates.
   85          
   86  Be It Enacted by the Legislature of the State of Florida:
   87  
   88         Section 1. Effective upon becoming a law, paragraph (aa) of
   89  subsection (6) of section 627.351, Florida Statutes, is amended
   90  to read:
   91         627.351 Insurance risk apportionment plans.—
   92         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
   93         (aa) Except as otherwise provided in this paragraph, the
   94  corporation shall require the securing and maintaining of flood
   95  insurance as a condition of coverage of a personal lines
   96  residential risk. The insured or applicant must execute a form
   97  approved by the office affirming that flood insurance is not
   98  provided by the corporation and that if flood insurance is not
   99  secured by the applicant or insured from an insurer other than
  100  the corporation and in addition to coverage by the corporation,
  101  the risk will not be eligible for coverage by the corporation.
  102  The corporation may deny coverage of a personal lines
  103  residential risk to an applicant or insured who refuses to
  104  secure and maintain flood insurance. The requirement to purchase
  105  flood insurance shall be implemented as follows:
  106         1. Except as provided in subparagraphs 2. and 3., all
  107  personal lines residential policyholders must have flood
  108  coverage in place for policies effective on or after:
  109         a. January 1, 2024, for a structure that has a dwelling
  110  replacement cost of $600,000 or more.
  111         b. January 1, 2025, for a structure that has a dwelling
  112  replacement cost of $500,000 or more.
  113         c. January 1, 2026, for a structure that has a dwelling
  114  replacement cost of $400,000 or more.
  115         d. January 1, 2027, for all other personal lines
  116  residential property insured by the corporation.
  117         2. All personal lines residential policyholders whose
  118  property insured by the corporation is located within the
  119  special flood hazard area defined by the Federal Emergency
  120  Management Agency must have flood coverage in place:
  121         a. At the time of initial policy issuance for all new
  122  personal lines residential policies issued by the corporation on
  123  or after April 1, 2023.
  124         b. By the time of the policy renewal for all personal lines
  125  residential policies renewing on or after July 1, 2023.
  126         3. Policyholders are not required to purchase flood
  127  insurance as a condition for maintaining the following policies
  128  issued by the corporation:
  129         a. Policies that do not provide coverage for the peril of
  130  wind.
  131         b. Policies that provide coverage under a condominium unit
  132  owners form.
  133  
  134  The flood insurance required under this paragraph must meet, at
  135  a minimum, the dwelling coverage available from the National
  136  Flood Insurance Program or the requirements of subparagraphs s.
  137  627.715(1)(a)1., 2., and 3.
  138         Section 2. Present subsection (7) of section 627.351,
  139  Florida Statutes, is redesignated as subsection (8), a new
  140  subsection (7) is added to that section, paragraph (nn) is added
  141  to subsection (6) of that section, and paragraph (b) of
  142  subsection (2) and paragraphs (a), (b), (c), (e), (n) through
  143  (q), (v), (w), (x), (z), and (ii) of subsection (6) of that
  144  section are amended, to read:
  145         627.351 Insurance risk apportionment plans.—
  146         (2) WINDSTORM INSURANCE RISK APPORTIONMENT.—
  147         (b) The department shall require all insurers holding a
  148  certificate of authority to transact property insurance on a
  149  direct basis in this state, other than joint underwriting
  150  associations and other entities formed pursuant to this section,
  151  to provide windstorm coverage to applicants from areas
  152  determined to be eligible pursuant to paragraph (c) who in good
  153  faith are entitled to, but are unable to procure, such coverage
  154  through ordinary means; or it shall adopt a reasonable plan or
  155  plans for the equitable apportionment or sharing among such
  156  insurers of windstorm coverage, which may include formation of
  157  an association for this purpose. As used in this subsection, the
  158  term “property insurance” means insurance on real or personal
  159  property, as defined in s. 624.604, including insurance for
  160  fire, industrial fire, allied lines, farmowners multiperil,
  161  homeowners multiperil, commercial multiperil, and mobile homes,
  162  and including liability coverages on all such insurance, but
  163  excluding inland marine as defined in s. 624.607(3) and
  164  excluding vehicle insurance as defined in s. 624.605(1)(a) other
  165  than insurance on mobile homes used as permanent dwellings. The
  166  department shall adopt rules that provide a formula for the
  167  recovery and repayment of any deferred assessments.
  168         1. For the purpose of this section, properties eligible for
  169  such windstorm coverage are defined as dwellings, buildings, and
  170  other structures, including mobile homes which are used as
  171  dwellings and which are tied down in compliance with mobile home
  172  tie-down requirements prescribed by the Department of Highway
  173  Safety and Motor Vehicles pursuant to s. 320.8325, and the
  174  contents of all such properties. An applicant or policyholder is
  175  eligible for coverage only if an offer of coverage cannot be
  176  obtained by or for the applicant or policyholder from an
  177  admitted insurer at approved rates.
  178         2.a.(I) All insurers required to be members of such
  179  association shall participate in its writings, expenses, and
  180  losses. Surplus of the association shall be retained for the
  181  payment of claims and shall not be distributed to the member
  182  insurers. Such participation by member insurers shall be in the
  183  proportion that the net direct premiums of each member insurer
  184  written for property insurance in this state during the
  185  preceding calendar year bear to the aggregate net direct
  186  premiums for property insurance of all member insurers, as
  187  reduced by any credits for voluntary writings, in this state
  188  during the preceding calendar year. For the purposes of this
  189  subsection, the term “net direct premiums” means direct written
  190  premiums for property insurance, reduced by premium for
  191  liability coverage and for the following if included in allied
  192  lines: rain and hail on growing crops; livestock; association
  193  direct premiums booked; National Flood Insurance Program direct
  194  premiums; and similar deductions specifically authorized by the
  195  plan of operation and approved by the department. A member’s
  196  participation shall begin on the first day of the calendar year
  197  following the year in which it is issued a certificate of
  198  authority to transact property insurance in the state and shall
  199  terminate 1 year after the end of the calendar year during which
  200  it no longer holds a certificate of authority to transact
  201  property insurance in the state. The commissioner, after review
  202  of annual statements, other reports, and any other statistics
  203  that the commissioner deems necessary, shall certify to the
  204  association the aggregate direct premiums written for property
  205  insurance in this state by all member insurers.
  206         (II) Effective July 1, 2002, the association shall operate
  207  subject to the supervision and approval of a board of governors
  208  who are the same individuals that have been appointed by the
  209  Treasurer to serve on the board of governors of the Citizens
  210  Property Insurance Corporation.
  211         (III) The plan of operation shall provide a formula whereby
  212  a company voluntarily providing windstorm coverage in affected
  213  areas will be relieved wholly or partially from apportionment of
  214  a regular assessment pursuant to sub-sub-subparagraph d.(I) or
  215  sub-sub-subparagraph d.(II).
  216         (IV) A company which is a member of a group of companies
  217  under common management may elect to have its credits applied on
  218  a group basis, and any company or group may elect to have its
  219  credits applied to any other company or group.
  220         (V) There shall be no credits or relief from apportionment
  221  to a company for emergency assessments collected from its
  222  policyholders under sub-sub-subparagraph d.(III).
  223         (VI) The plan of operation may also provide for the award
  224  of credits, for a period not to exceed 3 years, from a regular
  225  assessment pursuant to sub-sub-subparagraph d.(I) or sub-sub
  226  subparagraph d.(II) as an incentive for taking policies out of
  227  the Residential Property and Casualty Joint Underwriting
  228  Association. In order to qualify for the exemption under this
  229  sub-sub-subparagraph, the take-out plan must provide that at
  230  least 40 percent of the policies removed from the Residential
  231  Property and Casualty Joint Underwriting Association cover risks
  232  located in Miami-Dade, Broward, and Palm Beach Counties or at
  233  least 30 percent of the policies so removed cover risks located
  234  in Miami-Dade, Broward, and Palm Beach Counties and an
  235  additional 50 percent of the policies so removed cover risks
  236  located in other coastal counties, and must also provide that no
  237  more than 15 percent of the policies so removed may exclude
  238  windstorm coverage. With the approval of the department, the
  239  association may waive these geographic criteria for a take-out
  240  plan that removes at least the lesser of 100,000 Residential
  241  Property and Casualty Joint Underwriting Association policies or
  242  15 percent of the total number of Residential Property and
  243  Casualty Joint Underwriting Association policies, provided the
  244  governing board of the Residential Property and Casualty Joint
  245  Underwriting Association certifies that the take-out plan will
  246  materially reduce the Residential Property and Casualty Joint
  247  Underwriting Association’s 100-year probable maximum loss from
  248  hurricanes. With the approval of the department, the board may
  249  extend such credits for an additional year if the insurer
  250  guarantees an additional year of renewability for all policies
  251  removed from the Residential Property and Casualty Joint
  252  Underwriting Association, or for 2 additional years if the
  253  insurer guarantees 2 additional years of renewability for all
  254  policies removed from the Residential Property and Casualty
  255  Joint Underwriting Association.
  256         b. Assessments to pay deficits in the association under
  257  this subparagraph shall be included as an appropriate factor in
  258  the making of rates as provided in s. 627.3512.
  259         c. The Legislature finds that the potential for unlimited
  260  deficit assessments under this subparagraph may induce insurers
  261  to attempt to reduce their writings in the voluntary market, and
  262  that such actions would worsen the availability problems that
  263  the association was created to remedy. It is the intent of the
  264  Legislature that insurers remain fully responsible for paying
  265  regular assessments and collecting emergency assessments for any
  266  deficits of the association; however, it is also the intent of
  267  the Legislature to provide a means by which assessment
  268  liabilities may be amortized over a period of years.
  269         d.(I) When the deficit incurred in a particular calendar
  270  year is 10 percent or less of the aggregate statewide direct
  271  written premium for property insurance for the prior calendar
  272  year for all member insurers, the association shall levy an
  273  assessment on member insurers in an amount equal to the deficit.
  274         (II) When the deficit incurred in a particular calendar
  275  year exceeds 10 percent of the aggregate statewide direct
  276  written premium for property insurance for the prior calendar
  277  year for all member insurers, the association shall levy an
  278  assessment on member insurers in an amount equal to the greater
  279  of 10 percent of the deficit or 10 percent of the aggregate
  280  statewide direct written premium for property insurance for the
  281  prior calendar year for member insurers. Any remaining deficit
  282  shall be recovered through emergency assessments under sub-sub
  283  subparagraph (III).
  284         (III) Upon a determination by the board of directors that a
  285  deficit exceeds the amount that will be recovered through
  286  regular assessments on member insurers, pursuant to sub-sub
  287  subparagraph (I) or sub-sub-subparagraph (II), the board shall
  288  levy, after verification by the department, emergency
  289  assessments to be collected by member insurers and by
  290  underwriting associations created pursuant to this section which
  291  write property insurance, upon issuance or renewal of property
  292  insurance policies other than National Flood Insurance policies
  293  in the year or years following levy of the regular assessments.
  294  The amount of the emergency assessment collected in a particular
  295  year shall be a uniform percentage of that year’s direct written
  296  premium for property insurance for all member insurers and
  297  underwriting associations, excluding National Flood Insurance
  298  policy premiums, as annually determined by the board and
  299  verified by the department. The department shall verify the
  300  arithmetic calculations involved in the board’s determination
  301  within 30 days after receipt of the information on which the
  302  determination was based. Notwithstanding any other provision of
  303  law, each member insurer and each underwriting association
  304  created pursuant to this section shall collect emergency
  305  assessments from its policyholders without such obligation being
  306  affected by any credit, limitation, exemption, or deferment. The
  307  emergency assessments so collected shall be transferred directly
  308  to the association on a periodic basis as determined by the
  309  association. The aggregate amount of emergency assessments
  310  levied under this sub-sub-subparagraph in any calendar year may
  311  not exceed the greater of 10 percent of the amount needed to
  312  cover the original deficit, plus interest, fees, commissions,
  313  required reserves, and other costs associated with financing of
  314  the original deficit, or 10 percent of the aggregate statewide
  315  direct written premium for property insurance written by member
  316  insurers and underwriting associations for the prior year, plus
  317  interest, fees, commissions, required reserves, and other costs
  318  associated with financing the original deficit. The board may
  319  pledge the proceeds of the emergency assessments under this sub
  320  sub-subparagraph as the source of revenue for bonds, to retire
  321  any other debt incurred as a result of the deficit or events
  322  giving rise to the deficit, or in any other way that the board
  323  determines will efficiently recover the deficit. The emergency
  324  assessments under this sub-sub-subparagraph shall continue as
  325  long as any bonds issued or other indebtedness incurred with
  326  respect to a deficit for which the assessment was imposed remain
  327  outstanding, unless adequate provision has been made for the
  328  payment of such bonds or other indebtedness pursuant to the
  329  document governing such bonds or other indebtedness. Emergency
  330  assessments collected under this sub-sub-subparagraph are not
  331  part of an insurer’s rates, are not premium, and are not subject
  332  to premium tax, fees, or commissions; however, failure to pay
  333  the emergency assessment shall be treated as failure to pay
  334  premium.
  335         (IV) Each member insurer’s share of the total regular
  336  assessments under sub-sub-subparagraph (I) or sub-sub
  337  subparagraph (II) shall be in the proportion that the insurer’s
  338  net direct premium for property insurance in this state, for the
  339  year preceding the assessment bears to the aggregate statewide
  340  net direct premium for property insurance of all member
  341  insurers, as reduced by any credits for voluntary writings for
  342  that year.
  343         (V) If regular deficit assessments are made under sub-sub
  344  subparagraph (I) or sub-sub-subparagraph (II), or by the
  345  Residential Property and Casualty Joint Underwriting Association
  346  under sub-subparagraph (6)(b)3.a., the association shall levy
  347  upon the association’s policyholders, as part of its next rate
  348  filing, or by a separate rate filing solely for this purpose, a
  349  market equalization surcharge in a percentage equal to the total
  350  amount of such regular assessments divided by the aggregate
  351  statewide direct written premium for property insurance for
  352  member insurers for the prior calendar year. Market equalization
  353  surcharges under this sub-sub-subparagraph are not considered
  354  premium and are not subject to commissions, fees, or premium
  355  taxes; however, failure to pay a market equalization surcharge
  356  shall be treated as failure to pay premium.
  357         e. The governing body of any unit of local government, any
  358  residents of which are insured under the plan, may issue bonds
  359  as defined in s. 125.013 or s. 166.101 to fund an assistance
  360  program, in conjunction with the association, for the purpose of
  361  defraying deficits of the association. In order to avoid
  362  needless and indiscriminate proliferation, duplication, and
  363  fragmentation of such assistance programs, any unit of local
  364  government, any residents of which are insured by the
  365  association, may provide for the payment of losses, regardless
  366  of whether or not the losses occurred within or outside of the
  367  territorial jurisdiction of the local government. Revenue bonds
  368  may not be issued until validated pursuant to chapter 75, unless
  369  a state of emergency is declared by executive order or
  370  proclamation of the Governor pursuant to s. 252.36 making such
  371  findings as are necessary to determine that it is in the best
  372  interests of, and necessary for, the protection of the public
  373  health, safety, and general welfare of residents of this state
  374  and the protection and preservation of the economic stability of
  375  insurers operating in this state, and declaring it an essential
  376  public purpose to permit certain municipalities or counties to
  377  issue bonds as will provide relief to claimants and
  378  policyholders of the association and insurers responsible for
  379  apportionment of plan losses. Any such unit of local government
  380  may enter into such contracts with the association and with any
  381  other entity created pursuant to this subsection as are
  382  necessary to carry out this paragraph. Any bonds issued under
  383  this sub-subparagraph shall be payable from and secured by
  384  moneys received by the association from assessments under this
  385  subparagraph, and assigned and pledged to or on behalf of the
  386  unit of local government for the benefit of the holders of such
  387  bonds. The funds, credit, property, and taxing power of the
  388  state or of the unit of local government shall not be pledged
  389  for the payment of such bonds. If any of the bonds remain unsold
  390  60 days after issuance, the department shall require all
  391  insurers subject to assessment to purchase the bonds, which
  392  shall be treated as admitted assets; each insurer shall be
  393  required to purchase that percentage of the unsold portion of
  394  the bond issue that equals the insurer’s relative share of
  395  assessment liability under this subsection. An insurer shall not
  396  be required to purchase the bonds to the extent that the
  397  department determines that the purchase would endanger or impair
  398  the solvency of the insurer. The authority granted by this sub
  399  subparagraph is additional to any bonding authority granted by
  400  subparagraph 6.
  401         3. The plan shall also provide that any member with a
  402  surplus as to policyholders of $25 million or less writing 25
  403  percent or more of its total countrywide property insurance
  404  premiums in this state may petition the department, within the
  405  first 90 days of each calendar year, to qualify as a limited
  406  apportionment company. The apportionment of such a member
  407  company in any calendar year for which it is qualified shall not
  408  exceed its gross participation, which shall not be affected by
  409  the formula for voluntary writings. In no event shall a limited
  410  apportionment company be required to participate in any
  411  apportionment of losses pursuant to sub-sub-subparagraph 2.d.(I)
  412  or sub-sub-subparagraph 2.d.(II) in the aggregate which exceeds
  413  $50 million after payment of available plan funds in any
  414  calendar year. However, a limited apportionment company shall
  415  collect from its policyholders any emergency assessment imposed
  416  under sub-sub-subparagraph 2.d.(III). The plan shall provide
  417  that, if the department determines that any regular assessment
  418  will result in an impairment of the surplus of a limited
  419  apportionment company, the department may direct that all or
  420  part of such assessment be deferred. However, there shall be no
  421  limitation or deferment of an emergency assessment to be
  422  collected from policyholders under sub-sub-subparagraph
  423  2.d.(III).
  424         4. The plan shall provide for the deferment, in whole or in
  425  part, of a regular assessment of a member insurer under sub-sub
  426  subparagraph 2.d.(I) or sub-sub-subparagraph 2.d.(II), but not
  427  for an emergency assessment collected from policyholders under
  428  sub-sub-subparagraph 2.d.(III), if, in the opinion of the
  429  commissioner, payment of such regular assessment would endanger
  430  or impair the solvency of the member insurer. In the event a
  431  regular assessment against a member insurer is deferred in whole
  432  or in part, the amount by which such assessment is deferred may
  433  be assessed against the other member insurers in a manner
  434  consistent with the basis for assessments set forth in sub-sub
  435  subparagraph 2.d.(I) or sub-sub-subparagraph 2.d.(II).
  436         5.a. The plan of operation may include deductibles and
  437  rules for classification of risks and rate modifications
  438  consistent with the objective of providing and maintaining funds
  439  sufficient to pay catastrophe losses.
  440         b. It is the intent of the Legislature that the rates for
  441  coverage provided by the association be actuarially sound and
  442  not competitive with approved rates charged in the admitted
  443  voluntary market such that the association functions as a
  444  residual market mechanism to provide insurance only when the
  445  insurance cannot be procured in the voluntary market. The plan
  446  of operation shall provide a mechanism to assure that, beginning
  447  no later than January 1, 1999, the rates charged by the
  448  association for each line of business are reflective of approved
  449  rates in the voluntary market for hurricane coverage for each
  450  line of business in the various areas eligible for association
  451  coverage.
  452         c. The association shall provide for windstorm coverage on
  453  residential properties in limits up to $10 million for
  454  commercial lines residential risks and up to $1 million for
  455  personal lines residential risks. If coverage with the
  456  association is sought for a residential risk valued in excess of
  457  these limits, coverage shall be available to the risk up to the
  458  replacement cost or actual cash value of the property, at the
  459  option of the insured, if coverage for the risk cannot be
  460  located in the authorized market. The association must accept a
  461  commercial lines residential risk with limits above $10 million
  462  or a personal lines residential risk with limits above $1
  463  million if coverage is not available in the authorized market.
  464  The association may write coverage above the limits specified in
  465  this subparagraph with or without facultative or other
  466  reinsurance coverage, as the association determines appropriate.
  467         d. The plan of operation must provide objective criteria
  468  and procedures, approved by the department, to be uniformly
  469  applied for all applicants in determining whether an individual
  470  risk is so hazardous as to be uninsurable. In making this
  471  determination and in establishing the criteria and procedures,
  472  the following shall be considered:
  473         (I) Whether the likelihood of a loss for the individual
  474  risk is substantially higher than for other risks of the same
  475  class; and
  476         (II) Whether the uncertainty associated with the individual
  477  risk is such that an appropriate premium cannot be determined.
  478  
  479  The acceptance or rejection of a risk by the association
  480  pursuant to such criteria and procedures must be construed as
  481  the private placement of insurance, and the provisions of
  482  chapter 120 do not apply.
  483         e. If the risk accepts an offer of coverage through the
  484  market assistance program or through a mechanism established by
  485  the association, either before the policy is issued by the
  486  association or during the first 30 days of coverage by the
  487  association, and the producing agent who submitted the
  488  application to the association is not currently appointed by the
  489  insurer, the insurer shall:
  490         (I) Pay to the producing agent of record of the policy, for
  491  the first year, an amount that is the greater of the insurer’s
  492  usual and customary commission for the type of policy written or
  493  a fee equal to the usual and customary commission of the
  494  association; or
  495         (II) Offer to allow the producing agent of record of the
  496  policy to continue servicing the policy for a period of not less
  497  than 1 year and offer to pay the agent the greater of the
  498  insurer’s or the association’s usual and customary commission
  499  for the type of policy written.
  500  
  501  If the producing agent is unwilling or unable to accept
  502  appointment, the new insurer shall pay the agent in accordance
  503  with sub-sub-subparagraph (I). Subject to the provisions of s.
  504  627.3517, the policies issued by the association must provide
  505  that if the association obtains an offer from an authorized
  506  insurer to cover the risk at its approved rates under either a
  507  standard policy including wind coverage or, if consistent with
  508  the insurer’s underwriting rules as filed with the department, a
  509  basic policy including wind coverage, the risk is no longer
  510  eligible for coverage through the association. Upon termination
  511  of eligibility, the association shall provide written notice to
  512  the policyholder and agent of record stating that the
  513  association policy must be canceled as of 60 days after the date
  514  of the notice because of the offer of coverage from an
  515  authorized insurer. Other provisions of the insurance code
  516  relating to cancellation and notice of cancellation do not apply
  517  to actions under this sub-subparagraph.
  518         f. When the association enters into a contractual agreement
  519  for a take-out plan, the producing agent of record of the
  520  association policy is entitled to retain any unearned commission
  521  on the policy, and the insurer shall:
  522         (I) Pay to the producing agent of record of the association
  523  policy, for the first year, an amount that is the greater of the
  524  insurer’s usual and customary commission for the type of policy
  525  written or a fee equal to the usual and customary commission of
  526  the association; or
  527         (II) Offer to allow the producing agent of record of the
  528  association policy to continue servicing the policy for a period
  529  of not less than 1 year and offer to pay the agent the greater
  530  of the insurer’s or the association’s usual and customary
  531  commission for the type of policy written.
  532  
  533  If the producing agent is unwilling or unable to accept
  534  appointment, the new insurer shall pay the agent in accordance
  535  with sub-sub-subparagraph (I).
  536         6.a. The plan of operation may authorize the formation of a
  537  private nonprofit corporation, a private nonprofit
  538  unincorporated association, a partnership, a trust, a limited
  539  liability company, or a nonprofit mutual company which may be
  540  empowered, among other things, to borrow money by issuing bonds
  541  or by incurring other indebtedness and to accumulate reserves or
  542  funds to be used for the payment of insured catastrophe losses.
  543  The plan may authorize all actions necessary to facilitate the
  544  issuance of bonds, including the pledging of assessments or
  545  other revenues.
  546         b. Any entity created under this subsection, or any entity
  547  formed for the purposes of this subsection, may sue and be sued,
  548  may borrow money; issue bonds, notes, or debt instruments;
  549  pledge or sell assessments, market equalization surcharges and
  550  other surcharges, rights, premiums, contractual rights,
  551  projected recoveries from the Florida Hurricane Catastrophe
  552  Fund, other reinsurance recoverables, and other assets as
  553  security for such bonds, notes, or debt instruments; enter into
  554  any contracts or agreements necessary or proper to accomplish
  555  such borrowings; and take other actions necessary to carry out
  556  the purposes of this subsection. The association may issue bonds
  557  or incur other indebtedness, or have bonds issued on its behalf
  558  by a unit of local government pursuant to subparagraph (6)(q)2.,
  559  in the absence of a hurricane or other weather-related event,
  560  upon a determination by the association subject to approval by
  561  the department that such action would enable it to efficiently
  562  meet the financial obligations of the association and that such
  563  financings are reasonably necessary to effectuate the
  564  requirements of this subsection. Any such entity may accumulate
  565  reserves and retain surpluses as of the end of any association
  566  year to provide for the payment of losses incurred by the
  567  association during that year or any future year. The association
  568  shall incorporate and continue the plan of operation and
  569  articles of agreement in effect on the effective date of chapter
  570  76-96, Laws of Florida, to the extent that it is not
  571  inconsistent with chapter 76-96, and as subsequently modified
  572  consistent with chapter 76-96. The board of directors and
  573  officers currently serving shall continue to serve until their
  574  successors are duly qualified as provided under the plan. The
  575  assets and obligations of the plan in effect immediately prior
  576  to the effective date of chapter 76-96 shall be construed to be
  577  the assets and obligations of the successor plan created herein.
  578         c. In recognition of s. 10, Art. I of the State
  579  Constitution, prohibiting the impairment of obligations of
  580  contracts, it is the intent of the Legislature that no action be
  581  taken whose purpose is to impair any bond indenture or financing
  582  agreement or any revenue source committed by contract to such
  583  bond or other indebtedness issued or incurred by the association
  584  or any other entity created under this subsection.
  585         7. On such coverage, an agent’s remuneration shall be that
  586  amount of money payable to the agent by the terms of his or her
  587  contract with the company with which the business is placed.
  588  However, no commission will be paid on that portion of the
  589  premium which is in excess of the standard premium of that
  590  company.
  591         8. Subject to approval by the department, the association
  592  may establish different eligibility requirements and operational
  593  procedures for any line or type of coverage for any specified
  594  eligible area or portion of an eligible area if the board
  595  determines that such changes to the eligibility requirements and
  596  operational procedures are justified due to the voluntary market
  597  being sufficiently stable and competitive in such area or for
  598  such line or type of coverage and that consumers who, in good
  599  faith, are unable to obtain insurance through the voluntary
  600  market through ordinary methods would continue to have access to
  601  coverage from the association. When coverage is sought in
  602  connection with a real property transfer, such requirements and
  603  procedures shall not provide for an effective date of coverage
  604  later than the date of the closing of the transfer as
  605  established by the transferor, the transferee, and, if
  606  applicable, the lender.
  607         9. Notwithstanding any other provision of law:
  608         a. The pledge or sale of, the lien upon, and the security
  609  interest in any rights, revenues, or other assets of the
  610  association created or purported to be created pursuant to any
  611  financing documents to secure any bonds or other indebtedness of
  612  the association shall be and remain valid and enforceable,
  613  notwithstanding the commencement of and during the continuation
  614  of, and after, any rehabilitation, insolvency, liquidation,
  615  bankruptcy, receivership, conservatorship, reorganization, or
  616  similar proceeding against the association under the laws of
  617  this state or any other applicable laws.
  618         b. No such proceeding shall relieve the association of its
  619  obligation, or otherwise affect its ability to perform its
  620  obligation, to continue to collect, or levy and collect,
  621  assessments, market equalization or other surcharges, projected
  622  recoveries from the Florida Hurricane Catastrophe Fund,
  623  reinsurance recoverables, or any other rights, revenues, or
  624  other assets of the association pledged.
  625         c. Each such pledge or sale of, lien upon, and security
  626  interest in, including the priority of such pledge, lien, or
  627  security interest, any such assessments, emergency assessments,
  628  market equalization or renewal surcharges, projected recoveries
  629  from the Florida Hurricane Catastrophe Fund, reinsurance
  630  recoverables, or other rights, revenues, or other assets which
  631  are collected, or levied and collected, after the commencement
  632  of and during the pendency of or after any such proceeding shall
  633  continue unaffected by such proceeding.
  634         d. As used in this subsection, the term “financing
  635  documents” means any agreement, instrument, or other document
  636  now existing or hereafter created evidencing any bonds or other
  637  indebtedness of the association or pursuant to which any such
  638  bonds or other indebtedness has been or may be issued and
  639  pursuant to which any rights, revenues, or other assets of the
  640  association are pledged or sold to secure the repayment of such
  641  bonds or indebtedness, together with the payment of interest on
  642  such bonds or such indebtedness, or the payment of any other
  643  obligation of the association related to such bonds or
  644  indebtedness.
  645         e. Any such pledge or sale of assessments, revenues,
  646  contract rights or other rights or assets of the association
  647  shall constitute a lien and security interest, or sale, as the
  648  case may be, that is immediately effective and attaches to such
  649  assessments, revenues, contract, or other rights or assets,
  650  whether or not imposed or collected at the time the pledge or
  651  sale is made. Any such pledge or sale is effective, valid,
  652  binding, and enforceable against the association or other entity
  653  making such pledge or sale, and valid and binding against and
  654  superior to any competing claims or obligations owed to any
  655  other person or entity, including policyholders in this state,
  656  asserting rights in any such assessments, revenues, contract, or
  657  other rights or assets to the extent set forth in and in
  658  accordance with the terms of the pledge or sale contained in the
  659  applicable financing documents, whether or not any such person
  660  or entity has notice of such pledge or sale and without the need
  661  for any physical delivery, recordation, filing, or other action.
  662         f. There shall be no liability on the part of, and no cause
  663  of action of any nature shall arise against, any member insurer
  664  or its agents or employees, agents or employees of the
  665  association, members of the board of directors of the
  666  association, or the department or its representatives, for any
  667  action taken by them in the performance of their duties or
  668  responsibilities under this subsection. Such immunity does not
  669  apply to actions for breach of any contract or agreement
  670  pertaining to insurance, or any willful tort.
  671         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
  672         (a) The public purpose of this subsection is to ensure that
  673  there is an orderly market for property insurance for residents
  674  and businesses of this state.
  675         1. The Legislature finds that private insurers are
  676  unwilling or unable to provide affordable property insurance
  677  coverage in this state to the extent sought and needed. The
  678  absence of affordable property insurance threatens the public
  679  health, safety, and welfare and likewise threatens the economic
  680  health of the state. The state therefore has a compelling public
  681  interest and a public purpose to assist in assuring that
  682  property in the state is insured and that it is insured at
  683  affordable rates so as to facilitate the remediation,
  684  reconstruction, and replacement of damaged or destroyed property
  685  in order to reduce or avoid the negative effects otherwise
  686  resulting to the public health, safety, and welfare, to the
  687  economy of the state, and to the revenues of the state and local
  688  governments which are needed to provide for the public welfare.
  689  It is necessary, therefore, to provide affordable property
  690  insurance to applicants who are in good faith entitled to
  691  procure insurance through the voluntary market but are unable to
  692  do so. The Legislature intends, therefore, that affordable
  693  property insurance be provided and that it continue to be
  694  provided, as long as necessary, through Citizens Property
  695  Insurance Corporation, a government entity that is an integral
  696  part of the state, and that is not a private insurance company.
  697  To that end, the corporation shall strive to increase the
  698  availability of affordable property insurance in this state,
  699  while achieving efficiencies and economies, and while providing
  700  service to policyholders, applicants, and agents which is no
  701  less than the quality generally provided in the voluntary
  702  market, for the achievement of the foregoing public purposes.
  703  Because it is essential for this government entity to have the
  704  maximum financial resources to pay claims following a
  705  catastrophic hurricane, it is the intent of the Legislature that
  706  the corporation continue to be an integral part of the state and
  707  that the income of the corporation be exempt from federal income
  708  taxation and that interest on the debt obligations issued by the
  709  corporation be exempt from federal income taxation.
  710         2. The Residential Property and Casualty Joint Underwriting
  711  Association originally created by this statute shall be known as
  712  the Citizens Property Insurance Corporation. The corporation
  713  shall provide insurance for residential and commercial property,
  714  for applicants who are entitled, but, in good faith, are unable
  715  to procure insurance through the voluntary market. The
  716  corporation shall operate pursuant to a plan of operation
  717  approved by order of the Financial Services Commission. The plan
  718  is subject to continuous review by the commission. The
  719  commission may, by order, withdraw approval of all or part of a
  720  plan if the commission determines that conditions have changed
  721  since approval was granted and that the purposes of the plan
  722  require changes in the plan. For the purposes of this
  723  subsection, residential coverage includes both personal lines
  724  residential coverage, which consists of the type of coverage
  725  provided by homeowner, mobile home owner, dwelling, tenant,
  726  condominium unit owner, and similar policies; and commercial
  727  lines residential coverage, which consists of the type of
  728  coverage provided by condominium association, apartment
  729  building, and similar policies.
  730         3. With respect to coverage for personal lines residential
  731  structures:
  732         a. Effective January 1, 2014, a structure that has a
  733  dwelling replacement cost of $1 million or more, or a single
  734  condominium unit that has a combined dwelling and contents
  735  replacement cost of $1 million or more, is not eligible for
  736  coverage by the corporation. Such dwellings insured by the
  737  corporation on December 31, 2013, may continue to be covered by
  738  the corporation until the end of the policy term. The office
  739  shall approve the method used by the corporation for valuing the
  740  dwelling replacement cost for the purposes of this subparagraph.
  741  If a policyholder is insured by the corporation before being
  742  determined to be ineligible pursuant to this subparagraph and
  743  such policyholder files a lawsuit challenging the determination,
  744  the policyholder may remain insured by the corporation until the
  745  conclusion of the litigation.
  746         b. Effective January 1, 2015, a structure that has a
  747  dwelling replacement cost of $900,000 or more, or a single
  748  condominium unit that has a combined dwelling and contents
  749  replacement cost of $900,000 or more, is not eligible for
  750  coverage by the corporation. Such dwellings insured by the
  751  corporation on December 31, 2014, may continue to be covered by
  752  the corporation only until the end of the policy term.
  753         c. Effective January 1, 2016, a structure that has a
  754  dwelling replacement cost of $800,000 or more, or a single
  755  condominium unit that has a combined dwelling and contents
  756  replacement cost of $800,000 or more, is not eligible for
  757  coverage by the corporation. Such dwellings insured by the
  758  corporation on December 31, 2015, may continue to be covered by
  759  the corporation until the end of the policy term.
  760         d. Effective January 1, 2017, a structure that has a
  761  dwelling replacement cost of $700,000 or more, or a single
  762  condominium unit that has a combined dwelling and contents
  763  replacement cost of $700,000 or more, is not eligible for
  764  coverage by the corporation. Such dwellings insured by the
  765  corporation on December 31, 2016, may continue to be covered by
  766  the corporation until the end of the policy term.
  767         b. The requirements of sub-subparagraph a. sub
  768  subparagraphs b.-d. do not apply in counties where the office
  769  determines there is not a reasonable degree of competition. In
  770  such counties a personal lines residential structure that has a
  771  dwelling replacement cost of less than $1 million, or a single
  772  condominium unit that has a combined dwelling and contents
  773  replacement cost of less than $1 million, is eligible for
  774  coverage by the corporation.
  775         c.The office may evaluate whether there is a reasonable
  776  degree of competition within an individual zip code located in a
  777  county that has not been determined by the office to lack a
  778  reasonable degree of competition at the county level pursuant to
  779  sub-subparagraph b. If the office determines that such zip code
  780  lacks a reasonable degree of competition, structures located
  781  within that zip code that have a dwelling replacement cost of
  782  $700,000 or more but less than $1 million and single condominium
  783  units that have a combined dwelling and contents replacement
  784  cost of $700,000 or more but less than $1 million are eligible
  785  for coverage from the corporation.
  786         4. It is the intent of the Legislature that policyholders,
  787  applicants, and agents of the corporation receive service and
  788  treatment of the highest possible level but never less than that
  789  generally provided in the voluntary market. It is also intended
  790  that the corporation be held to service standards no less than
  791  those applied to insurers in the voluntary market by the office
  792  with respect to responsiveness, timeliness, customer courtesy,
  793  and overall dealings with policyholders, applicants, or agents
  794  of the corporation.
  795         5.a. Effective January 1, 2009, a personal lines
  796  residential structure that is located in the “wind-borne debris
  797  region,” as defined in s. 1609.2, International Building Code
  798  (2006), and that has an insured value on the structure of
  799  $750,000 or more is not eligible for coverage by the corporation
  800  unless the structure has opening protections as required under
  801  the Florida Building Code for a newly constructed residential
  802  structure in that area. A residential structure is deemed to
  803  comply with this sub-subparagraph if it has shutters or opening
  804  protections on all openings and if such opening protections
  805  complied with the Florida Building Code at the time they were
  806  installed.
  807         b. Any major structure, as defined in s. 161.54(6)(a), that
  808  is newly constructed, or rebuilt, repaired, restored, or
  809  remodeled to increase the total square footage of finished area
  810  by more than 25 percent, pursuant to a permit applied for after
  811  July 1, 2015, is not eligible for coverage by the corporation if
  812  the structure is seaward of the coastal construction control
  813  line established pursuant to s. 161.053 or is within the Coastal
  814  Barrier Resources System as designated by 16 U.S.C. ss. 3501
  815  3510.
  816         6. With respect to wind-only coverage for commercial lines
  817  residential condominiums, effective July 1, 2014, a condominium
  818  shall be deemed ineligible for coverage if 50 percent or more of
  819  the units are rented more than eight times in a calendar year
  820  for a rental agreement period of less than 30 days.
  821         (b)1. All insurers authorized to write one or more subject
  822  lines of business in this state are subject to assessment by the
  823  corporation and, for the purposes of this subsection, are
  824  referred to collectively as “assessable insurers.” Insurers
  825  writing one or more subject lines of business in this state
  826  pursuant to part VIII of chapter 626 are not assessable
  827  insurers; however, insureds who procure one or more subject
  828  lines of business in this state pursuant to part VIII of chapter
  829  626 are subject to assessment by the corporation and are
  830  referred to collectively as “assessable insureds.” An insurer’s
  831  assessment liability begins on the first day of the calendar
  832  year following the year in which the insurer was issued a
  833  certificate of authority to transact insurance for subject lines
  834  of business in this state and terminates 1 year after the end of
  835  the first calendar year during which the insurer no longer holds
  836  a certificate of authority to transact insurance for subject
  837  lines of business in this state.
  838         2.a. All revenues, assets, liabilities, losses, and
  839  expenses of the corporation shall be maintained in the Citizens
  840  account. The Citizens account may provide divided into three
  841  separate accounts as follows:
  842         a.(I)A personal lines account for Personal residential
  843  policies that provide issued by the corporation which provides
  844  comprehensive, multiperil coverage on risks that are not located
  845  in areas eligible for coverage by the Florida Windstorm
  846  Underwriting Association as those areas were defined on January
  847  1, 2002, and for policies that do not provide coverage for the
  848  peril of wind on risks that are located in such areas;
  849         b.(II)A commercial lines account for Commercial
  850  residential and commercial nonresidential policies that provide
  851  issued by the corporation which provides coverage for basic
  852  property perils on risks that are not located in areas eligible
  853  for coverage by the Florida Windstorm Underwriting Association
  854  as those areas were defined on January 1, 2002, and for policies
  855  that do not provide coverage for the peril of wind on risks that
  856  are located in such areas; and
  857         c.(III)A coastal account for Personal residential policies
  858  and commercial residential and commercial nonresidential
  859  property policies that provide issued by the corporation which
  860  provides coverage for the peril of wind on risks that are
  861  located in areas eligible for coverage by the Florida Windstorm
  862  Underwriting Association as those areas were defined on January
  863  1, 2002. The corporation may offer policies that provide
  864  multiperil coverage and shall offer policies that provide
  865  coverage only for the peril of wind for risks located in areas
  866  eligible for coverage by the Florida Windstorm Underwriting
  867  Association, as those areas were defined on January 1, 2002 in
  868  the coastal account. Effective July 1, 2014, The corporation may
  869  not offer shall cease offering new commercial residential
  870  policies providing multiperil coverage but and shall instead
  871  continue to offer commercial residential wind-only policies, and
  872  may offer commercial residential policies excluding wind.
  873  However, the corporation may, however, continue to renew a
  874  commercial residential multiperil policy on a building that was
  875  is insured by the corporation on June 30, 2014, under a
  876  multiperil policy. In issuing multiperil coverage under this
  877  sub-subparagraph, the corporation may use its approved policy
  878  forms and rates for risks located in areas not eligible for
  879  coverage by the Florida Windstorm Underwriting Association, as
  880  those areas were defined on January 1, 2002, and for policies
  881  that do not provide coverage for the peril of wind on risks that
  882  are located in such areas the personal lines account. An
  883  applicant or insured who is eligible to purchase a multiperil
  884  policy from the corporation may purchase a multiperil policy
  885  from an authorized insurer without prejudice to the applicant’s
  886  or insured’s eligibility to prospectively purchase a policy that
  887  provides coverage only for the peril of wind from the
  888  corporation. An applicant or insured who is eligible for a
  889  corporation policy that provides coverage only for the peril of
  890  wind may elect to purchase or retain such policy and also
  891  purchase or retain coverage excluding wind from an authorized
  892  insurer without prejudice to the applicant’s or insured’s
  893  eligibility to prospectively purchase a policy that provides
  894  multiperil coverage from the corporation. The following
  895  policies, which provide coverage only for the peril of wind,
  896  must also include quota share primary insurance under
  897  subparagraph (c)2.:
  898         (I)Personal residential policies and commercial
  899  residential and commercial nonresidential property policies that
  900  provide coverage for the peril of wind on risks that are located
  901  in areas eligible for coverage by the Florida Windstorm
  902  Underwriting Association, as those areas were defined on January
  903  1, 2002;
  904         (II)Policies that provide multiperil coverage, if offered
  905  by the corporation, and policies that provide coverage only for
  906  the peril of wind for risks located in areas eligible for
  907  coverage by the Florida Windstorm Underwriting Association, as
  908  those areas were defined on January 1, 2002;
  909         (III)Commercial residential wind-only policies;
  910         (IV)Commercial residential policies excluding wind, if
  911  offered by the corporation; and
  912         (V)Commercial residential multiperil policies on a
  913  building that was insured by the corporation on June 30, 2014 It
  914  is the goal of the Legislature that there be an overall average
  915  savings of 10 percent or more for a policyholder who currently
  916  has a wind-only policy with the corporation, and an ex-wind
  917  policy with a voluntary insurer or the corporation, and who
  918  obtains a multiperil policy from the corporation. It is the
  919  intent of the Legislature that the offer of multiperil coverage
  920  in the coastal account be made and implemented in a manner that
  921  does not adversely affect the tax-exempt status of the
  922  corporation or creditworthiness of or security for currently
  923  outstanding financing obligations or credit facilities of the
  924  coastal account, the personal lines account, or the commercial
  925  lines account. The coastal account must also include quota share
  926  primary insurance under subparagraph (c)2.
  927  
  928  The area eligible for coverage with the corporation under this
  929  sub-subparagraph under the coastal account also includes the
  930  area within Port Canaveral, which is bordered on the south by
  931  the City of Cape Canaveral, bordered on the west by the Banana
  932  River, and bordered on the north by Federal Government property.
  933         3.With respect to a deficit in the Citizens account:
  934         a.Upon a determination by the board of governors that the
  935  Citizens account has a projected deficit, the board shall levy a
  936  Citizens policyholder surcharge against all policyholders of the
  937  corporation.
  938         (I)The surcharge shall be levied as a uniform percentage
  939  of the premium for the policy of up to 15 percent of such
  940  premium, which funds shall be used to offset the deficit.
  941         (II)The surcharge is payable upon cancellation or
  942  termination of the policy, upon renewal of the policy, or upon
  943  issuance of a new policy by the corporation within the first 12
  944  months after the date of the levy or the period of time
  945  necessary to fully collect the surcharge amount.
  946         (III)The surcharge is not considered premium and is not
  947  subject to commissions, fees, or premium taxes. However, failure
  948  to pay the surcharge shall be treated as failure to pay premium.
  949         b. The three separate accounts must be maintained as long
  950  as financing obligations entered into by the Florida Windstorm
  951  Underwriting Association or Residential Property and Casualty
  952  Joint Underwriting Association are outstanding, in accordance
  953  with the terms of the corresponding financing documents. If no
  954  such financing obligations remain outstanding or if the
  955  financing documents allow for combining of accounts, the
  956  corporation may consolidate the three separate accounts into a
  957  new account, to be known as the Citizens account, for all
  958  revenues, assets, liabilities, losses, and expenses of the
  959  corporation. The Citizens account, if established by the
  960  corporation, is authorized to provide coverage to the same
  961  extent as provided under each of the three separate accounts.
  962  The authority to provide coverage under the Citizens account is
  963  set forth in subparagraph 4. Consistent with this subparagraph
  964  and prudent investment policies that minimize the cost of
  965  carrying debt, the board shall exercise its best efforts to
  966  retire existing debt or obtain the approval of necessary parties
  967  to amend the terms of existing debt, so as to structure the most
  968  efficient plan for consolidating the three separate accounts
  969  into a single account. Once the accounts are combined into one
  970  account, this subparagraph and subparagraph 3. shall be replaced
  971  in their entirety by subparagraphs 4. and 5.
  972         c. Creditors of the Residential Property and Casualty Joint
  973  Underwriting Association and the accounts specified in sub-sub
  974  subparagraphs a.(I) and (II) may have a claim against, and
  975  recourse to, those accounts and no claim against, or recourse
  976  to, the account referred to in sub-sub-subparagraph a.(III).
  977  Creditors of the Florida Windstorm Underwriting Association have
  978  a claim against, and recourse to, the account referred to in
  979  sub-sub-subparagraph a.(III) and no claim against, or recourse
  980  to, the accounts referred to in sub-sub-subparagraphs a.(I) and
  981  (II).
  982         d. Revenues, assets, liabilities, losses, and expenses not
  983  attributable to particular accounts shall be prorated among the
  984  accounts.
  985         e. The Legislature finds that the revenues of the
  986  corporation are revenues that are necessary to meet the
  987  requirements set forth in documents authorizing the issuance of
  988  bonds under this subsection.
  989         f. The income of the corporation may not inure to the
  990  benefit of any private person.
  991         3. With respect to a deficit in an account:
  992         a. After accounting for the Citizens policyholder surcharge
  993  imposed under sub-subparagraph j., if the remaining projected
  994  deficit incurred in the coastal account in a particular calendar
  995  year:
  996         (I) Is not greater than 2 percent of the aggregate
  997  statewide direct written premium for the subject lines of
  998  business for the prior calendar year, the entire deficit shall
  999  be recovered through regular assessments of assessable insurers
 1000  under paragraph (q) and assessable insureds.
 1001         (II) Exceeds 2 percent of the aggregate statewide direct
 1002  written premium for the subject lines of business for the prior
 1003  calendar year, the corporation shall levy regular assessments on
 1004  assessable insurers under paragraph (q) and on assessable
 1005  insureds in an amount equal to the greater of 2 percent of the
 1006  projected deficit or 2 percent of the aggregate statewide direct
 1007  written premium for the subject lines of business for the prior
 1008  calendar year. Any remaining projected deficit shall be
 1009  recovered through emergency assessments under sub-subparagraph
 1010  e.
 1011         b. Each assessable insurer’s share of the amount being
 1012  assessed under sub-subparagraph a. must be in the proportion
 1013  that the assessable insurer’s direct written premium for the
 1014  subject lines of business for the year preceding the assessment
 1015  bears to the aggregate statewide direct written premium for the
 1016  subject lines of business for that year. The assessment
 1017  percentage applicable to each assessable insured is the ratio of
 1018  the amount being assessed under sub-subparagraph a. to the
 1019  aggregate statewide direct written premium for the subject lines
 1020  of business for the prior year. Assessments levied by the
 1021  corporation on assessable insurers under sub-subparagraph a.
 1022  must be paid as required by the corporation’s plan of operation
 1023  and paragraph (q). Assessments levied by the corporation on
 1024  assessable insureds under sub-subparagraph a. shall be collected
 1025  by the surplus lines agent at the time the surplus lines agent
 1026  collects the surplus lines tax required by s. 626.932, and paid
 1027  to the Florida Surplus Lines Service Office at the time the
 1028  surplus lines agent pays the surplus lines tax to that office.
 1029  Upon receipt of regular assessments from surplus lines agents,
 1030  the Florida Surplus Lines Service Office shall transfer the
 1031  assessments directly to the corporation as determined by the
 1032  corporation.
 1033         c. The corporation may not levy regular assessments under
 1034  paragraph (q) pursuant to sub-subparagraph a. or sub
 1035  subparagraph b. if the three separate accounts in sub-sub
 1036  subparagraphs 2.a.(I)-(III) have been consolidated into the
 1037  Citizens account pursuant to sub-subparagraph 2.b. However, the
 1038  outstanding balance of any regular assessment levied by the
 1039  corporation before establishment of the Citizens account remains
 1040  payable to the corporation.
 1041         b.d. After accounting for the Citizens policyholder
 1042  surcharge imposed under sub-subparagraph a. j., the remaining
 1043  projected deficits in the Citizens personal lines account and in
 1044  the commercial lines account in a particular calendar year shall
 1045  be recovered through emergency assessments under sub
 1046  subparagraph c. e.
 1047         c.e. Upon a determination by the board of governors that a
 1048  projected deficit in the Citizens an account exceeds the amount
 1049  that is expected to be recovered through surcharges regular
 1050  assessments under sub-subparagraph a., plus the amount that is
 1051  expected to be recovered through surcharges under sub
 1052  subparagraph j., the board, after verification by the office,
 1053  shall levy emergency assessments for as many years as necessary
 1054  to cover the deficits, to be collected by assessable insurers
 1055  and the corporation and collected from assessable insureds upon
 1056  issuance or renewal of policies for subject lines of business,
 1057  excluding National Flood Insurance Program policies. The amount
 1058  collected in a particular year must be a uniform percentage of
 1059  that year’s direct written premium for subject lines of business
 1060  and the Citizens account all accounts of the corporation,
 1061  excluding National Flood Insurance Program policy premiums, as
 1062  annually determined by the board and verified by the office. The
 1063  office shall verify the arithmetic calculations involved in the
 1064  board’s determination within 30 days after receipt of the
 1065  information on which the determination was based. The office
 1066  shall notify assessable insurers and the Florida Surplus Lines
 1067  Service Office of the date on which assessable insurers shall
 1068  begin to collect and assessable insureds shall begin to pay such
 1069  assessment. The date must be at least 90 days after the date the
 1070  corporation levies emergency assessments pursuant to this sub
 1071  subparagraph. Notwithstanding any other provision of law, the
 1072  corporation and each assessable insurer that writes subject
 1073  lines of business shall collect emergency assessments from its
 1074  policyholders without such obligation being affected by any
 1075  credit, limitation, exemption, or deferment. Emergency
 1076  assessments levied by the corporation on assessable insureds
 1077  shall be collected by the surplus lines agent at the time the
 1078  surplus lines agent collects the surplus lines tax required by
 1079  s. 626.932 and paid to the Florida Surplus Lines Service Office
 1080  at the time the surplus lines agent pays the surplus lines tax
 1081  to that office. The emergency assessments collected shall be
 1082  transferred directly to the corporation on a periodic basis as
 1083  determined by the corporation and held by the corporation solely
 1084  in the Citizens applicable account. The aggregate amount of
 1085  emergency assessments levied for the Citizens an account in any
 1086  calendar year may be less than but may not exceed the greater of
 1087  10 percent of the amount needed to cover the deficit, plus
 1088  interest, fees, commissions, required reserves, and other costs
 1089  associated with financing the original deficit, or 10 percent of
 1090  the aggregate statewide direct written premium for subject lines
 1091  of business and the Citizens account all accounts of the
 1092  corporation for the prior year, plus interest, fees,
 1093  commissions, required reserves, and other costs associated with
 1094  financing the deficit.
 1095         d.f. The corporation may pledge the proceeds of
 1096  assessments, projected recoveries from the Florida Hurricane
 1097  Catastrophe Fund, other insurance and reinsurance recoverables,
 1098  policyholder surcharges and other surcharges, and other funds
 1099  available to the corporation as the source of revenue for and to
 1100  secure bonds issued under paragraph (q), bonds or other
 1101  indebtedness issued under subparagraph (c)3., or lines of credit
 1102  or other financing mechanisms issued or created under this
 1103  subsection, or to retire any other debt incurred as a result of
 1104  deficits or events giving rise to deficits, or in any other way
 1105  that the board determines will efficiently recover such
 1106  deficits. The purpose of the lines of credit or other financing
 1107  mechanisms is to provide additional resources to assist the
 1108  corporation in covering claims and expenses attributable to a
 1109  catastrophe. As used in this subsection, the term “assessments”
 1110  includes emergency regular assessments under sub-subparagraph c.
 1111  a. or subparagraph (q)1. and emergency assessments under sub
 1112  subparagraph e. Emergency assessments collected under sub
 1113  subparagraph c. e. are not part of an insurer’s rates, are not
 1114  premium, and are not subject to premium tax, fees, or
 1115  commissions; however, failure to pay the emergency assessment
 1116  shall be treated as failure to pay premium. The emergency
 1117  assessments shall continue as long as any bonds issued or other
 1118  indebtedness incurred with respect to a deficit for which the
 1119  assessment was imposed remain outstanding, unless adequate
 1120  provision has been made for the payment of such bonds or other
 1121  indebtedness pursuant to the documents governing such bonds or
 1122  indebtedness.
 1123         e.g. As used in this subsection and for purposes of any
 1124  deficit incurred on or after January 25, 2007, the term “subject
 1125  lines of business” means insurance written by assessable
 1126  insurers or procured by assessable insureds for all property and
 1127  casualty lines of business in this state, but not including
 1128  workers’ compensation or medical malpractice. As used in this
 1129  sub-subparagraph, the term “property and casualty lines of
 1130  business” includes all lines of business identified on Form 2,
 1131  Exhibit of Premiums and Losses, in the annual statement required
 1132  of authorized insurers under s. 624.424 and any rule adopted
 1133  under this section, except for those lines identified as
 1134  accident and health insurance and except for policies written
 1135  under the National Flood Insurance Program or the Federal Crop
 1136  Insurance Program. For purposes of this sub-subparagraph, the
 1137  term “workers’ compensation” includes both workers’ compensation
 1138  insurance and excess workers’ compensation insurance.
 1139         f.h. The Florida Surplus Lines Service Office shall
 1140  annually determine annually the aggregate statewide written
 1141  premium in subject lines of business procured by assessable
 1142  insureds and report that information to the corporation in a
 1143  form and at a time the corporation specifies to ensure that the
 1144  corporation can meet the requirements of this subsection and the
 1145  corporation’s financing obligations.
 1146         g.i. The Florida Surplus Lines Service Office shall verify
 1147  the proper application by surplus lines agents of assessment
 1148  percentages for regular assessments and emergency assessments
 1149  levied under this subparagraph on assessable insureds and assist
 1150  the corporation in ensuring the accurate, timely collection and
 1151  payment of assessments by surplus lines agents as required by
 1152  the corporation.
 1153         j. Upon determination by the board of governors that an
 1154  account has a projected deficit, the board shall levy a Citizens
 1155  policyholder surcharge against all policyholders of the
 1156  corporation.
 1157         (I) The surcharge shall be levied as a uniform percentage
 1158  of the premium for the policy of up to 15 percent of such
 1159  premium, which funds shall be used to offset the deficit.
 1160         (II) The surcharge is payable upon cancellation or
 1161  termination of the policy, upon renewal of the policy, or upon
 1162  issuance of a new policy by the corporation within the first 12
 1163  months after the date of the levy or the period of time
 1164  necessary to fully collect the surcharge amount.
 1165         (III) The corporation may not levy any regular assessments
 1166  under paragraph (q) pursuant to sub-subparagraph a. or sub
 1167  subparagraph b. with respect to a particular year’s deficit
 1168  until the corporation has first levied the full amount of the
 1169  surcharge authorized by this sub-subparagraph.
 1170         (IV) The surcharge is not considered premium and is not
 1171  subject to commissions, fees, or premium taxes. However, failure
 1172  to pay the surcharge shall be treated as failure to pay premium.
 1173         h.k. If the amount of any assessments or surcharges
 1174  collected from corporation policyholders, assessable insurers or
 1175  their policyholders, or assessable insureds exceeds the amount
 1176  of the deficits, such excess amounts shall be remitted to and
 1177  retained by the corporation in a reserve to be used by the
 1178  corporation, as determined by the board of governors and
 1179  approved by the office, to pay claims or reduce any past,
 1180  present, or future plan-year deficits or to reduce outstanding
 1181  debt.
 1182         4.The Citizens account, if established by the corporation
 1183  pursuant to sub-subparagraph 2.b., is authorized to provide:
 1184         a. Personal residential policies that provide
 1185  comprehensive, multiperil coverage on risks that are not located
 1186  in areas eligible for coverage by the Florida Windstorm
 1187  Underwriting Association, as those areas were defined on January
 1188  1, 2002, and for policies that do not provide coverage for the
 1189  peril of wind on risks that are located in such areas;
 1190         b. Commercial residential and commercial nonresidential
 1191  policies that provide coverage for basic property perils on
 1192  risks that are not located in areas eligible for coverage by the
 1193  Florida Windstorm Underwriting Association, as those areas were
 1194  defined on January 1, 2002, and for policies that do not provide
 1195  coverage for the peril of wind on risks that are located in such
 1196  areas; and
 1197         c. Personal residential policies and commercial residential
 1198  and commercial nonresidential property policies that provide
 1199  coverage for the peril of wind on risks that are located in
 1200  areas eligible for coverage by the Florida Windstorm
 1201  Underwriting Association, as those areas were defined on January
 1202  1, 2002. The corporation may offer policies that provide
 1203  multiperil coverage and shall offer policies that provide
 1204  coverage only for the peril of wind for risks located in areas
 1205  eligible for coverage by the Florida Windstorm Underwriting
 1206  Association, as those areas were defined on January 1, 2002. The
 1207  corporation may not offer new commercial residential policies
 1208  providing multiperil coverage, but shall continue to offer
 1209  commercial residential wind-only policies, and may offer
 1210  commercial residential policies excluding wind. However, the
 1211  corporation may continue to renew a commercial residential
 1212  multiperil policy on a building that was insured by the
 1213  corporation on June 30, 2014, under a multiperil policy. In
 1214  issuing multiperil coverage under this sub-subparagraph, the
 1215  corporation may use its approved policy forms and rates for
 1216  risks located in areas not eligible for coverage by the Florida
 1217  Windstorm Underwriting Association as those areas were defined
 1218  on January 1, 2002, and for policies that do not provide
 1219  coverage for the peril of wind on risks that are located in such
 1220  areas. An applicant or insured who is eligible to purchase a
 1221  multiperil policy from the corporation may purchase a multiperil
 1222  policy from an authorized insurer without prejudice to the
 1223  applicant’s or insured’s eligibility to prospectively purchase a
 1224  policy that provides coverage only for the peril of wind from
 1225  the corporation. An applicant or insured who is eligible for a
 1226  corporation policy that provides coverage only for the peril of
 1227  wind may elect to purchase or retain such policy and also
 1228  purchase or retain coverage excluding wind from an authorized
 1229  insurer without prejudice to the applicant’s or insured’s
 1230  eligibility to prospectively purchase a policy that provides
 1231  multiperil coverage from the corporation. The following
 1232  policies, which provide coverage only for the peril of wind,
 1233  must also include quota share primary insurance under
 1234  subparagraph (c)2.: Personal residential policies and commercial
 1235  residential and commercial nonresidential property policies that
 1236  provide coverage for the peril of wind on risks that are located
 1237  in areas eligible for coverage by the Florida Windstorm
 1238  Underwriting Association, as those areas were defined on January
 1239  1, 2002; policies that provide multiperil coverage, if offered
 1240  by the corporation, and policies that provide coverage only for
 1241  the peril of wind for risks located in areas eligible for
 1242  coverage by the Florida Windstorm Underwriting Association, as
 1243  those areas were defined on January 1, 2002; commercial
 1244  residential wind-only policies; commercial residential policies
 1245  excluding wind, if offered by the corporation; and commercial
 1246  residential multiperil policies on a building that was insured
 1247  by the corporation on June 30, 2014. The area eligible for
 1248  coverage with the corporation under this sub-subparagraph
 1249  includes the area within Port Canaveral, which is bordered on
 1250  the south by the City of Cape Canaveral, bordered on the west by
 1251  the Banana River, and bordered on the north by Federal
 1252  Government property.
 1253         5. With respect to a deficit in the Citizens account:
 1254         a. Upon a determination by the board of governors that the
 1255  Citizens account has a projected deficit, the board shall levy a
 1256  Citizens policyholder surcharge against all policyholders of the
 1257  corporation.
 1258         (I) The surcharge shall be levied as a uniform percentage
 1259  of the premium for the policy of up to 15 percent of such
 1260  premium, which funds shall be used to offset the deficit.
 1261         (II) The surcharge is payable upon cancellation or
 1262  termination of the policy, upon renewal of the policy, or upon
 1263  issuance of a new policy by the corporation within the first 12
 1264  months after the date of the levy or the period of time
 1265  necessary to fully collect the surcharge amount.
 1266         (III) The surcharge is not considered premium and is not
 1267  subject to commissions, fees, or premium taxes. However, failure
 1268  to pay the surcharge shall be treated as failure to pay premium.
 1269         b. After accounting for the Citizens policyholder surcharge
 1270  imposed under sub-subparagraph a., the remaining projected
 1271  deficit incurred in the Citizens account in a particular
 1272  calendar year shall be recovered through emergency assessments
 1273  under sub-subparagraph c.
 1274         c. Upon a determination by the board of governors that a
 1275  projected deficit in the Citizens account exceeds the amount
 1276  that is expected to be recovered through surcharges under sub
 1277  subparagraph a., the board, after verification by the office,
 1278  shall levy emergency assessments for as many years as necessary
 1279  to cover the deficits, to be collected by assessable insurers
 1280  and the corporation and collected from assessable insureds upon
 1281  issuance or renewal of policies for subject lines of business,
 1282  excluding National Flood Insurance Program policies. The amount
 1283  collected in a particular year must be a uniform percentage of
 1284  that year’s direct written premium for subject lines of business
 1285  and the Citizens account, National Flood Insurance Program
 1286  policy premiums, as annually determined by the board and
 1287  verified by the office. The office shall verify the arithmetic
 1288  calculations involved in the board’s determination within 30
 1289  days after receipt of the information on which the determination
 1290  was based. The office shall notify assessable insurers and the
 1291  Florida Surplus Lines Service Office of the date on which
 1292  assessable insurers shall begin to collect and assessable
 1293  insureds shall begin to pay such assessment. The date must be at
 1294  least 90 days after the date the corporation levies emergency
 1295  assessments pursuant to this sub-subparagraph. Notwithstanding
 1296  any other law, the corporation and each assessable insurer that
 1297  writes subject lines of business shall collect emergency
 1298  assessments from its policyholders without such obligation being
 1299  affected by any credit, limitation, exemption, or deferment.
 1300  Emergency assessments levied by the corporation on assessable
 1301  insureds shall be collected by the surplus lines agent at the
 1302  time the surplus lines agent collects the surplus lines tax
 1303  required by s. 626.932 and paid to the Florida Surplus Lines
 1304  Service Office at the time the surplus lines agent pays the
 1305  surplus lines tax to that office. The emergency assessments
 1306  collected shall be transferred directly to the corporation on a
 1307  periodic basis as determined by the corporation and held by the
 1308  corporation solely in the Citizens account. The aggregate amount
 1309  of emergency assessments levied for the Citizens account in any
 1310  calendar year may be less than, but may not exceed the greater
 1311  of, 10 percent of the amount needed to cover the deficit, plus
 1312  interest, fees, commissions, required reserves, and other costs
 1313  associated with financing the original deficit or 10 percent of
 1314  the aggregate statewide direct written premium for subject lines
 1315  of business and the Citizens accounts for the prior year, plus
 1316  interest, fees, commissions, required reserves, and other costs
 1317  associated with financing the deficit.
 1318         d. The corporation may pledge the proceeds of assessments,
 1319  projected recoveries from the Florida Hurricane Catastrophe
 1320  Fund, other insurance and reinsurance recoverables, policyholder
 1321  surcharges and other surcharges, and other funds available to
 1322  the corporation as the source of revenue for and to secure bonds
 1323  issued under paragraph (q), bonds or other indebtedness issued
 1324  under subparagraph (c)3., or lines of credit or other financing
 1325  mechanisms issued or created under this subsection; or to retire
 1326  any other debt incurred as a result of deficits or events giving
 1327  rise to deficits, or in any other way that the board determines
 1328  will efficiently recover such deficits. The purpose of the lines
 1329  of credit or other financing mechanisms is to provide additional
 1330  resources to assist the corporation in covering claims and
 1331  expenses attributable to a catastrophe. As used in this
 1332  subsection, the term “assessments” includes emergency
 1333  assessments under sub-subparagraph c. Emergency assessments
 1334  collected under sub-subparagraph c. are not part of an insurer’s
 1335  rates, are not premium, and are not subject to premium tax,
 1336  fees, or commissions; however, failure to pay the emergency
 1337  assessment shall be treated as failure to pay premium. The
 1338  emergency assessments shall continue as long as any bonds issued
 1339  or other indebtedness incurred with respect to a deficit for
 1340  which the assessment was imposed remain outstanding, unless
 1341  adequate provision has been made for the payment of such bonds
 1342  or other indebtedness pursuant to the documents governing such
 1343  bonds or indebtedness.
 1344         e. As used in this subsection and for purposes of any
 1345  deficit incurred on or after January 25, 2007, the term “subject
 1346  lines of business” means insurance written by assessable
 1347  insurers or procured by assessable insureds for all property and
 1348  casualty lines of business in this state, but not including
 1349  workers’ compensation or medical malpractice. As used in this
 1350  sub-subparagraph, the term “property and casualty lines of
 1351  business” includes all lines of business identified on Form 2,
 1352  Exhibit of Premiums and Losses, in the annual statement required
 1353  of authorized insurers under s. 624.424 and any rule adopted
 1354  under this section, except for those lines identified as
 1355  accident and health insurance and except for policies written
 1356  under the National Flood Insurance Program or the Federal Crop
 1357  Insurance Program. For purposes of this sub-subparagraph, the
 1358  term “workers’ compensation” includes both workers’ compensation
 1359  insurance and excess workers’ compensation insurance.
 1360         f. The Florida Surplus Lines Service Office shall annually
 1361  determine the aggregate statewide written premium in subject
 1362  lines of business procured by assessable insureds and report
 1363  that information to the corporation in a form and at a time the
 1364  corporation specifies to ensure that the corporation can meet
 1365  the requirements of this subsection and the corporation’s
 1366  financing obligations.
 1367         g. The Florida Surplus Lines Service Office shall verify
 1368  the proper application by surplus lines agents of assessment
 1369  percentages for emergency assessments levied under this
 1370  subparagraph on assessable insureds and assist the corporation
 1371  in ensuring the accurate, timely collection and payment of
 1372  assessments by surplus lines agents as required by the
 1373  corporation.
 1374         h. If the amount of any assessments or surcharges collected
 1375  from corporation policyholders, assessable insurers or their
 1376  policyholders, or assessable insureds exceeds the amount of the
 1377  deficits, such excess amounts shall be remitted to and retained
 1378  by the corporation in a reserve to be used by the corporation,
 1379  as determined by the board of governors and approved by the
 1380  office, to pay claims or reduce any past, present, or future
 1381  plan-year deficits or to reduce outstanding debt.
 1382         (c) The corporation’s plan of operation:
 1383         1. Must provide for adoption of residential property and
 1384  casualty insurance policy forms and commercial residential and
 1385  nonresidential property insurance forms, which must be approved
 1386  by the office before use. The corporation shall adopt the
 1387  following policy forms:
 1388         a. Standard personal lines policy forms that are
 1389  comprehensive multiperil policies providing full coverage of a
 1390  residential property equivalent to the coverage provided in the
 1391  private insurance market under an HO-3, HO-4, or HO-6 policy.
 1392         b. Basic personal lines policy forms that are policies
 1393  similar to an HO-8 policy or a dwelling fire policy that provide
 1394  coverage meeting the requirements of the secondary mortgage
 1395  market, but which is more limited than the coverage under a
 1396  standard policy.
 1397         c. Commercial lines residential and nonresidential policy
 1398  forms that are generally similar to the basic perils of full
 1399  coverage obtainable for commercial residential structures and
 1400  commercial nonresidential structures in the admitted voluntary
 1401  market.
 1402         d. Personal lines and commercial lines residential property
 1403  insurance forms that cover the peril of wind only. The forms are
 1404  applicable only to residential properties located in areas
 1405  eligible for coverage by the Florida Windstorm Underwriting
 1406  Association, as those areas were defined on January 1, 2002.
 1407         e. Commercial lines nonresidential property insurance forms
 1408  that cover the peril of wind only. The forms are applicable only
 1409  to nonresidential properties located in areas eligible for
 1410  coverage by the Florida Windstorm Underwriting Association, as
 1411  those areas were defined on January 1, 2002.
 1412         f. The corporation may adopt variations of the policy forms
 1413  listed in sub-subparagraphs a.-e. which contain more restrictive
 1414  coverage.
 1415         g. The corporation shall offer a basic personal lines
 1416  policy similar to an HO-8 policy with dwelling repair based on
 1417  common construction materials and methods.
 1418         2. Must provide that the corporation adopt a program in
 1419  which the corporation and authorized insurers enter into quota
 1420  share primary insurance agreements for hurricane coverage, as
 1421  defined in s. 627.4025(2)(a), for eligible risks, and adopt
 1422  property insurance forms for eligible risks which cover the
 1423  peril of wind only.
 1424         a. As used in this subsection, the term:
 1425         (I)“Approved surplus lines insurer means an eligible
 1426  surplus lines insurer that:
 1427         (A)Has a financial strength rating of “A-” or higher from
 1428  A.M. Best Company;
 1429         (B)Has a personal lines residential risk program that is
 1430  managed by a Florida resident surplus lines broker;
 1431         (C)Applies to the office to participate in the take-out
 1432  process to offer coverage to applicants for new coverage from
 1433  the corporation or current policyholders of the corporation
 1434  through a take-out plan approved by the office;
 1435         (D)Files rates for review as part of a take-out plan with
 1436  the office. The office shall review whether the premium is more
 1437  than 20 percent greater than the premium for comparable coverage
 1438  from the corporation; and
 1439         (E)Provides data to the office related to coverage and
 1440  rates in a format promulgated by the commission.
 1441         (III)“Primary residence” means the dwelling that is the
 1442  policyholder’s primary home or is a rental property that is the
 1443  primary home of the tenant, and which the policyholder or tenant
 1444  occupies for more than 9 months of each year.
 1445         (IV)(I) “Quota share primary insurance” means an
 1446  arrangement in which the primary hurricane coverage of an
 1447  eligible risk is provided in specified percentages by the
 1448  corporation and an authorized insurer. The corporation and
 1449  authorized insurer are each solely responsible for a specified
 1450  percentage of hurricane coverage of an eligible risk as set
 1451  forth in a quota share primary insurance agreement between the
 1452  corporation and an authorized insurer and the insurance
 1453  contract. The responsibility of the corporation or authorized
 1454  insurer to pay its specified percentage of hurricane losses of
 1455  an eligible risk, as set forth in the agreement, may not be
 1456  altered by the inability of the other party to pay its specified
 1457  percentage of losses. Eligible risks that are provided hurricane
 1458  coverage through a quota share primary insurance arrangement
 1459  must be provided policy forms that set forth the obligations of
 1460  the corporation and authorized insurer under the arrangement,
 1461  clearly specify the percentages of quota share primary insurance
 1462  provided by the corporation and authorized insurer, and
 1463  conspicuously and clearly state that the authorized insurer and
 1464  the corporation may not be held responsible beyond their
 1465  specified percentage of coverage of hurricane losses.
 1466         (II) “Eligible risks” means personal lines residential and
 1467  commercial lines residential risks that meet the underwriting
 1468  criteria of the corporation and are located in areas that were
 1469  eligible for coverage by the Florida Windstorm Underwriting
 1470  Association on January 1, 2002.
 1471         b. The corporation may enter into quota share primary
 1472  insurance agreements with authorized insurers at corporation
 1473  coverage levels of 90 percent and 50 percent.
 1474         c. If the corporation determines that additional coverage
 1475  levels are necessary to maximize participation in quota share
 1476  primary insurance agreements by authorized insurers, the
 1477  corporation may establish additional coverage levels. However,
 1478  the corporation’s quota share primary insurance coverage level
 1479  may not exceed 90 percent.
 1480         d. Any quota share primary insurance agreement entered into
 1481  between an authorized insurer and the corporation must provide
 1482  for a uniform specified percentage of coverage of hurricane
 1483  losses, by county or territory as set forth by the corporation
 1484  board, for all eligible risks of the authorized insurer covered
 1485  under the agreement.
 1486         e. Any quota share primary insurance agreement entered into
 1487  between an authorized insurer and the corporation is subject to
 1488  review and approval by the office. However, such agreement shall
 1489  be authorized only as to insurance contracts entered into
 1490  between an authorized insurer and an insured who is already
 1491  insured by the corporation for wind coverage.
 1492         f. For all eligible risks covered under quota share primary
 1493  insurance agreements, the exposure and coverage levels for both
 1494  the corporation and authorized insurers shall be reported by the
 1495  corporation to the Florida Hurricane Catastrophe Fund. For all
 1496  policies of eligible risks covered under such agreements, the
 1497  corporation and the authorized insurer must maintain complete
 1498  and accurate records for the purpose of exposure and loss
 1499  reimbursement audits as required by fund rules. The corporation
 1500  and the authorized insurer shall each maintain duplicate copies
 1501  of policy declaration pages and supporting claims documents.
 1502         g. The corporation board shall establish in its plan of
 1503  operation standards for quota share agreements which ensure that
 1504  there is no discriminatory application among insurers as to the
 1505  terms of the agreements, pricing of the agreements, incentive
 1506  provisions if any, and consideration paid for servicing policies
 1507  or adjusting claims.
 1508         h. The quota share primary insurance agreement between the
 1509  corporation and an authorized insurer must set forth the
 1510  specific terms under which coverage is provided, including, but
 1511  not limited to, the sale and servicing of policies issued under
 1512  the agreement by the insurance agent of the authorized insurer
 1513  producing the business, the reporting of information concerning
 1514  eligible risks, the payment of premium to the corporation, and
 1515  arrangements for the adjustment and payment of hurricane claims
 1516  incurred on eligible risks by the claims adjuster and personnel
 1517  of the authorized insurer. Entering into a quota sharing
 1518  insurance agreement between the corporation and an authorized
 1519  insurer is voluntary and at the discretion of the authorized
 1520  insurer.
 1521         3. May provide that the corporation may employ or otherwise
 1522  contract with individuals or other entities to provide
 1523  administrative or professional services that may be appropriate
 1524  to effectuate the plan. The corporation may borrow funds by
 1525  issuing bonds or by incurring other indebtedness, and shall have
 1526  other powers reasonably necessary to effectuate the requirements
 1527  of this subsection, including, without limitation, the power to
 1528  issue bonds and incur other indebtedness in order to refinance
 1529  outstanding bonds or other indebtedness. The corporation may
 1530  seek judicial validation of its bonds or other indebtedness
 1531  under chapter 75. The corporation may issue bonds or incur other
 1532  indebtedness, or have bonds issued on its behalf by a unit of
 1533  local government pursuant to subparagraph (q)2. in the absence
 1534  of a hurricane or other weather-related event, upon a
 1535  determination by the corporation, subject to approval by the
 1536  office, that such action would enable it to efficiently meet the
 1537  financial obligations of the corporation and that such
 1538  financings are reasonably necessary to effectuate the
 1539  requirements of this subsection. The corporation may take all
 1540  actions needed to facilitate tax-free status for such bonds or
 1541  indebtedness, including formation of trusts or other affiliated
 1542  entities. The corporation may pledge assessments, projected
 1543  recoveries from the Florida Hurricane Catastrophe Fund, other
 1544  reinsurance recoverables, policyholder surcharges and other
 1545  surcharges, and other funds available to the corporation as
 1546  security for bonds or other indebtedness. In recognition of s.
 1547  10, Art. I of the State Constitution, prohibiting the impairment
 1548  of obligations of contracts, it is the intent of the Legislature
 1549  that no action be taken whose purpose is to impair any bond
 1550  indenture or financing agreement or any revenue source committed
 1551  by contract to such bond or other indebtedness.
 1552         4. Must require that the corporation operate subject to the
 1553  supervision and approval of a board of governors consisting of
 1554  nine individuals who are residents of this state and who are
 1555  from different geographical areas of the state, one of whom is
 1556  appointed by the Governor and serves solely to advocate on
 1557  behalf of the consumer. The appointment of a consumer
 1558  representative by the Governor is deemed to be within the scope
 1559  of the exemption provided in s. 112.313(7)(b) and is in addition
 1560  to the appointments authorized under sub-subparagraph a.
 1561         a. The Governor, the Chief Financial Officer, the President
 1562  of the Senate, and the Speaker of the House of Representatives
 1563  shall each appoint two members of the board. At least one of the
 1564  two members appointed by each appointing officer must have
 1565  demonstrated expertise in insurance and be deemed to be within
 1566  the scope of the exemption provided in s. 112.313(7)(b). The
 1567  Chief Financial Officer shall designate one of the appointees as
 1568  chair. All board members serve at the pleasure of the appointing
 1569  officer. All members of the board are subject to removal at will
 1570  by the officers who appointed them. All board members, including
 1571  the chair, must be appointed to serve for 3-year terms beginning
 1572  annually on a date designated by the plan. However, for the
 1573  first term beginning on or after July 1, 2009, each appointing
 1574  officer shall appoint one member of the board for a 2-year term
 1575  and one member for a 3-year term. A board vacancy shall be
 1576  filled for the unexpired term by the appointing officer. The
 1577  Chief Financial Officer shall appoint a technical advisory group
 1578  to provide information and advice to the board in connection
 1579  with the board’s duties under this subsection. The executive
 1580  director and senior managers of the corporation shall be engaged
 1581  by the board and serve at the pleasure of the board. Any
 1582  executive director appointed on or after July 1, 2006, is
 1583  subject to confirmation by the Senate. The executive director is
 1584  responsible for employing other staff as the corporation may
 1585  require, subject to review and concurrence by the board.
 1586         b. The board shall create a Market Accountability Advisory
 1587  Committee to assist the corporation in developing awareness of
 1588  its rates and its customer and agent service levels in
 1589  relationship to the voluntary market insurers writing similar
 1590  coverage.
 1591         (I) The members of the advisory committee consist of the
 1592  following 11 persons, one of whom must be elected chair by the
 1593  members of the committee: four representatives, one appointed by
 1594  the Florida Association of Insurance Agents, one by the Florida
 1595  Association of Insurance and Financial Advisors, one by the
 1596  Professional Insurance Agents of Florida, and one by the Latin
 1597  American Association of Insurance Agencies; three
 1598  representatives appointed by the insurers with the three highest
 1599  voluntary market share of residential property insurance
 1600  business in the state; one representative from the Office of
 1601  Insurance Regulation; one consumer appointed by the board who is
 1602  insured by the corporation at the time of appointment to the
 1603  committee; one representative appointed by the Florida
 1604  Association of Realtors; and one representative appointed by the
 1605  Florida Bankers Association. All members shall be appointed to
 1606  3-year terms and may serve for consecutive terms.
 1607         (II) The committee shall report to the corporation at each
 1608  board meeting on insurance market issues which may include rates
 1609  and rate competition with the voluntary market; service,
 1610  including policy issuance, claims processing, and general
 1611  responsiveness to policyholders, applicants, and agents; and
 1612  matters relating to depopulation.
 1613         5. Must provide a procedure for determining the eligibility
 1614  of a risk for coverage, as follows:
 1615         a. Subject to s. 627.3517, with respect to personal lines
 1616  residential risks that are primary residences, if the risk is
 1617  offered coverage from an authorized insurer at the insurer’s
 1618  approved rate under a standard policy including wind coverage
 1619  or, if consistent with the insurer’s underwriting rules as filed
 1620  with the office, a basic policy including wind coverage, for a
 1621  new application to the corporation for coverage, the risk is not
 1622  eligible for any policy issued by the corporation unless the
 1623  premium for coverage from the authorized insurer is more than 20
 1624  percent greater than the premium for comparable coverage from
 1625  the corporation. Whenever an offer of coverage for a personal
 1626  lines residential risk that is a primary residence is received
 1627  for a policyholder of the corporation at renewal from an
 1628  authorized insurer, if the offer is equal to or less than the
 1629  corporation’s renewal premium for comparable coverage, the risk
 1630  is not eligible for coverage with the corporation for policies
 1631  that renew before April 1, 2023; for policies that renew on or
 1632  after that date, the risk is not eligible for coverage with the
 1633  corporation unless the premium for coverage from the authorized
 1634  insurer is more than 20 percent greater than the corporation’s
 1635  renewal premium for comparable coverage. If the risk is not able
 1636  to obtain such offer, the risk is eligible for a standard policy
 1637  including wind coverage or a basic policy including wind
 1638  coverage issued by the corporation; however, if the risk could
 1639  not be insured under a standard policy including wind coverage
 1640  regardless of market conditions, the risk is eligible for a
 1641  basic policy including wind coverage unless rejected under
 1642  subparagraph 8. The corporation shall determine the type of
 1643  policy to be provided on the basis of objective standards
 1644  specified in the underwriting manual and based on generally
 1645  accepted underwriting practices. A policyholder removed from the
 1646  corporation through an assumption agreement does not remain
 1647  eligible for coverage from the corporation after the end of the
 1648  policy term. However, any policy removed from the corporation
 1649  through an assumption agreement remains on the corporation’s
 1650  policy forms through the end of the policy term. This sub
 1651  subparagraph applies only to risks that are primary residences.
 1652         (I) If the risk accepts an offer of coverage through the
 1653  market assistance plan or through a mechanism established by the
 1654  corporation other than a plan established by s. 627.3518, before
 1655  a policy is issued to the risk by the corporation or during the
 1656  first 30 days of coverage by the corporation, and the producing
 1657  agent who submitted the application to the plan or to the
 1658  corporation is not currently appointed by the insurer, the
 1659  insurer shall:
 1660         (A) Pay to the producing agent of record of the policy for
 1661  the first year, an amount that is the greater of the insurer’s
 1662  usual and customary commission for the type of policy written or
 1663  a fee equal to the usual and customary commission of the
 1664  corporation; or
 1665         (B) Offer to allow the producing agent of record of the
 1666  policy to continue servicing the policy for at least 1 year and
 1667  offer to pay the agent the greater of the insurer’s or the
 1668  corporation’s usual and customary commission for the type of
 1669  policy written.
 1670  
 1671  If the producing agent is unwilling or unable to accept
 1672  appointment, the new insurer shall pay the agent in accordance
 1673  with sub-sub-sub-subparagraph (A).
 1674         (II) If the corporation enters into a contractual agreement
 1675  for a take-out plan, the producing agent of record of the
 1676  corporation policy is entitled to retain any unearned commission
 1677  on the policy, and the insurer shall:
 1678         (A) Pay to the producing agent of record, for the first
 1679  year, an amount that is the greater of the insurer’s usual and
 1680  customary commission for the type of policy written or a fee
 1681  equal to the usual and customary commission of the corporation;
 1682  or
 1683         (B) Offer to allow the producing agent of record to
 1684  continue servicing the policy for at least 1 year and offer to
 1685  pay the agent the greater of the insurer’s or the corporation’s
 1686  usual and customary commission for the type of policy written.
 1687  
 1688  If the producing agent is unwilling or unable to accept
 1689  appointment, the new insurer shall pay the agent in accordance
 1690  with sub-sub-sub-subparagraph (A).
 1691         b. Subject to s. 627.3517, with respect to personal lines
 1692  residential risks that are not primary residences, if the risk
 1693  is offered coverage from an authorized insurer at the insurer’s
 1694  approved rate or from an approved surplus lines insurer at the
 1695  rate approved by the office as part of such surplus lines
 1696  insurer’s take-out plan for a new application to the corporation
 1697  for coverage, the risk is not eligible for any policy issued by
 1698  the corporation unless the premium for coverage from the
 1699  authorized insurer or approved surplus lines insurer is more
 1700  than 20 percent greater than the premium for comparable coverage
 1701  from the corporation. Whenever an offer of coverage for a
 1702  personal lines residential risk that is not a primary residence
 1703  is received for a policyholder of the corporation at renewal
 1704  from an authorized insurer at the insurer’s approved rate or an
 1705  approved surplus lines insurer at the rate approved by the
 1706  office as part of such insurer’s take-out plan, the risk is not
 1707  eligible for coverage with the corporation unless the premium
 1708  for coverage from the authorized insurer or approved surplus
 1709  lines insurer is more than 20 percent greater than the
 1710  corporation’s renewal premium for comparable coverage for
 1711  policies that renew on or after July 1, 2024. If the risk is not
 1712  able to obtain such offer, the risk is eligible for a standard
 1713  policy including wind coverage or a basic policy including wind
 1714  coverage issued by the corporation. If the risk could not be
 1715  insured under a standard policy including wind coverage
 1716  regardless of market conditions, the risk is eligible for a
 1717  basic policy including wind coverage unless rejected under
 1718  subparagraph 8. The corporation shall determine the type of
 1719  policy to be provided on the basis of objective standards
 1720  specified in the underwriting manual and based on generally
 1721  accepted underwriting practices. A policyholder removed from the
 1722  corporation through an assumption agreement does not remain
 1723  eligible for coverage from the corporation after the end of the
 1724  policy term. However, any policy removed from the corporation
 1725  through an assumption agreement remains on the corporation’s
 1726  policy forms through the end of the policy term.
 1727         (I) If the risk accepts an offer of coverage through the
 1728  market assistance plan or through a mechanism established by the
 1729  corporation other than a plan established by s. 627.3518, before
 1730  a policy is issued to the risk by the corporation or during the
 1731  first 30 days of coverage by the corporation, and the producing
 1732  agent who submitted the application to the plan or to the
 1733  corporation is not currently appointed by the insurer, the
 1734  insurer must:
 1735         (A) Pay to the producing agent of record of the policy, for
 1736  the first year, an amount that is the greater of the insurer’s
 1737  usual and customary commission for the type of policy written or
 1738  a fee equal to the usual and customary commission of the
 1739  corporation; or
 1740         (B) Offer to allow the producing agent of record of the
 1741  policy to continue servicing the policy for at least 1 year and
 1742  offer to pay the agent the greater of the insurer’s or the
 1743  corporation’s usual and customary commission for the type of
 1744  policy written.
 1745  
 1746  If the producing agent is unwilling or unable to accept
 1747  appointment, the new insurer must pay the agent in accordance
 1748  with sub-sub-sub-subparagraph (A).
 1749         (II) If the corporation enters into a contractual agreement
 1750  for a take-out plan, the producing agent of record of the
 1751  corporation policy is entitled to retain any unearned commission
 1752  on the policy, and the insurer must:
 1753         (A) Pay to the producing agent of record, for the first
 1754  year, an amount that is the greater of the insurer’s usual and
 1755  customary commission for the type of policy written or a fee
 1756  equal to the usual and customary commission of the corporation;
 1757  or
 1758         (B) Offer to allow the producing agent of record to
 1759  continue servicing the policy for at least 1 year and offer to
 1760  pay the agent the greater of the insurer’s or the corporation’s
 1761  usual and customary commission for the type of policy written.
 1762  
 1763  If the producing agent is unwilling or unable to accept
 1764  appointment, the new insurer shall pay the agent in accordance
 1765  with sub-sub-sub-subparagraph (A).
 1766         c.b. With respect to commercial lines residential risks,
 1767  for a new application to the corporation for coverage, if the
 1768  risk is offered coverage under a policy including wind coverage
 1769  from an authorized insurer at its approved rate, the risk is not
 1770  eligible for a policy issued by the corporation unless the
 1771  premium for coverage from the authorized insurer is more than 20
 1772  percent greater than the premium for comparable coverage from
 1773  the corporation. Whenever an offer of coverage for a commercial
 1774  lines residential risk is received for a policyholder of the
 1775  corporation at renewal from an authorized insurer, the risk is
 1776  not eligible for coverage with the corporation unless the
 1777  premium for coverage from the authorized insurer is more than 20
 1778  percent greater than the corporation’s renewal premium for
 1779  comparable coverage. If the risk is not able to obtain any such
 1780  offer, the risk is eligible for a policy including wind coverage
 1781  issued by the corporation. A policyholder removed from the
 1782  corporation through an assumption agreement remains eligible for
 1783  coverage from the corporation until the end of the policy term.
 1784  However, any policy removed from the corporation through an
 1785  assumption agreement remains on the corporation’s policy forms
 1786  through the end of the policy term.
 1787         (I) If the risk accepts an offer of coverage through the
 1788  market assistance plan or through a mechanism established by the
 1789  corporation other than a plan established by s. 627.3518, before
 1790  a policy is issued to the risk by the corporation or during the
 1791  first 30 days of coverage by the corporation, and the producing
 1792  agent who submitted the application to the plan or the
 1793  corporation is not currently appointed by the insurer, the
 1794  insurer shall:
 1795         (A) Pay to the producing agent of record of the policy, for
 1796  the first year, an amount that is the greater of the insurer’s
 1797  usual and customary commission for the type of policy written or
 1798  a fee equal to the usual and customary commission of the
 1799  corporation; or
 1800         (B) Offer to allow the producing agent of record of the
 1801  policy to continue servicing the policy for at least 1 year and
 1802  offer to pay the agent the greater of the insurer’s or the
 1803  corporation’s usual and customary commission for the type of
 1804  policy written.
 1805  
 1806  If the producing agent is unwilling or unable to accept
 1807  appointment, the new insurer shall pay the agent in accordance
 1808  with sub-sub-sub-subparagraph (A).
 1809         (II) If the corporation enters into a contractual agreement
 1810  for a take-out plan, the producing agent of record of the
 1811  corporation policy is entitled to retain any unearned commission
 1812  on the policy, and the insurer shall:
 1813         (A) Pay to the producing agent of record, for the first
 1814  year, an amount that is the greater of the insurer’s usual and
 1815  customary commission for the type of policy written or a fee
 1816  equal to the usual and customary commission of the corporation;
 1817  or
 1818         (B) Offer to allow the producing agent of record to
 1819  continue servicing the policy for at least 1 year and offer to
 1820  pay the agent the greater of the insurer’s or the corporation’s
 1821  usual and customary commission for the type of policy written.
 1822  
 1823  If the producing agent is unwilling or unable to accept
 1824  appointment, the new insurer shall pay the agent in accordance
 1825  with sub-sub-sub-subparagraph (A).
 1826         d.c. For purposes of determining comparable coverage under
 1827  sub-subparagraphs a., and b., and c., the comparison must be
 1828  based on those forms and coverages that are reasonably
 1829  comparable. The corporation may rely on a determination of
 1830  comparable coverage and premium made by the producing agent who
 1831  submits the application to the corporation, made in the agent’s
 1832  capacity as the corporation’s agent. For purposes of comparing
 1833  the premium for comparable coverage under sub-subparagraphs a.,
 1834  and b., and c. premium includes any surcharge or assessment that
 1835  is actually applied to such policy. A comparison may be made
 1836  solely of the premium with respect to the main building or
 1837  structure only on the following basis: the same Coverage A or
 1838  other building limits; the same percentage hurricane deductible
 1839  that applies on an annual basis or that applies to each
 1840  hurricane for commercial residential property; the same
 1841  percentage of ordinance and law coverage, if the same limit is
 1842  offered by both the corporation and the authorized insurer or
 1843  the approved surplus line insurer; the same mitigation credits,
 1844  to the extent the same types of credits are offered both by the
 1845  corporation and the authorized insurer or the approved surplus
 1846  lines insurer; the same method for loss payment, such as
 1847  replacement cost or actual cash value, if the same method is
 1848  offered both by the corporation and the authorized insurer in
 1849  accordance with underwriting rules; and any other form or
 1850  coverage that is reasonably comparable as determined by the
 1851  board. If an application is submitted to the corporation for
 1852  wind-only coverage on a risk that is located in an area eligible
 1853  for coverage by the Florida Windstorm Underwriting Association,
 1854  as that area was defined on January 1, 2002, the premium for the
 1855  corporation’s wind-only policy plus the premium for the ex-wind
 1856  policy that is offered by an authorized insurer to the applicant
 1857  must be compared to the premium for multiperil coverage offered
 1858  by an authorized insurer, subject to the standards for
 1859  comparison specified in this subparagraph. If the corporation or
 1860  the applicant requests from the authorized insurer or the
 1861  approved surplus lines insurer a breakdown of the premium of the
 1862  offer by types of coverage so that a comparison may be made by
 1863  the corporation or its agent and the authorized insurer or the
 1864  approved surplus lines insurer refuses or is unable to provide
 1865  such information, the corporation may treat the offer as not
 1866  being an offer of coverage from an authorized insurer at the
 1867  insurer’s approved rate.
 1868         6. Must include rules for classifications of risks and
 1869  rates.
 1870         7. Must provide that if premium and investment income:
 1871         a. for the Citizens an account, which are attributable to a
 1872  particular calendar year, are in excess of projected losses and
 1873  expenses for the Citizens account attributable to that year,
 1874  such excess shall be held in surplus in the Citizens account.
 1875  Such surplus must be available to defray deficits in the
 1876  Citizens that account as to future years and used for that
 1877  purpose before assessing assessable insurers and assessable
 1878  insureds as to any calendar year; or
 1879         b.For the Citizens account, if established by the
 1880  corporation, which are attributable to a particular calendar
 1881  year are in excess of projected losses and expenses for the
 1882  Citizens account attributable to that year, such excess shall be
 1883  held in surplus in the Citizens account. Such surplus must be
 1884  available to defray deficits in the Citizens account as to
 1885  future years and used for that purpose before assessing
 1886  assessable insurers and assessable insureds as to any calendar
 1887  year.
 1888         8. Must provide objective criteria and procedures to be
 1889  uniformly applied to all applicants in determining whether an
 1890  individual risk is so hazardous as to be uninsurable. In making
 1891  this determination and in establishing the criteria and
 1892  procedures, the following must be considered:
 1893         a. Whether the likelihood of a loss for the individual risk
 1894  is substantially higher than for other risks of the same class;
 1895  and
 1896         b. Whether the uncertainty associated with the individual
 1897  risk is such that an appropriate premium cannot be determined.
 1898  
 1899  The acceptance or rejection of a risk by the corporation shall
 1900  be construed as the private placement of insurance, and the
 1901  provisions of chapter 120 do not apply.
 1902         9. Must provide that the corporation make its best efforts
 1903  to procure catastrophe reinsurance at reasonable rates, to cover
 1904  its projected 100-year probable maximum loss as determined by
 1905  the board of governors. If catastrophe reinsurance is not
 1906  available at reasonable rates, the corporation need not purchase
 1907  it, but the corporation shall include the costs of reinsurance
 1908  to cover its projected 100-year probable maximum loss in its
 1909  rate calculations even if it does not purchase catastrophe
 1910  reinsurance.
 1911         10. The policies issued by the corporation must provide
 1912  that if the corporation or the market assistance plan obtains an
 1913  offer from an authorized insurer to cover the risk at its
 1914  approved rates, the risk is no longer eligible for renewal
 1915  through the corporation, except as otherwise provided in this
 1916  subsection.
 1917         11. Corporation policies and applications must include a
 1918  notice that the corporation policy could, under this section, be
 1919  replaced with a policy issued by an authorized insurer which
 1920  does not provide coverage identical to the coverage provided by
 1921  the corporation. The notice must also specify that acceptance of
 1922  corporation coverage creates a conclusive presumption that the
 1923  applicant or policyholder is aware of this potential.
 1924         12. May establish, subject to approval by the office,
 1925  different eligibility requirements and operational procedures
 1926  for any line or type of coverage for any specified county or
 1927  area if the board determines that such changes are justified due
 1928  to the voluntary market being sufficiently stable and
 1929  competitive in such area or for such line or type of coverage
 1930  and that consumers who, in good faith, are unable to obtain
 1931  insurance through the voluntary market through ordinary methods
 1932  continue to have access to coverage from the corporation. If
 1933  coverage is sought in connection with a real property transfer,
 1934  the requirements and procedures may not provide an effective
 1935  date of coverage later than the date of the closing of the
 1936  transfer as established by the transferor, the transferee, and,
 1937  if applicable, the lender.
 1938         13. Must provide that:
 1939         a. With respect to the coastal account, any assessable
 1940  insurer with a surplus as to policyholders of $25 million or
 1941  less writing 25 percent or more of its total countrywide
 1942  property insurance premiums in this state may petition the
 1943  office, within the first 90 days of each calendar year, to
 1944  qualify as a limited apportionment company. A regular assessment
 1945  levied by the corporation on a limited apportionment company for
 1946  a deficit incurred by the corporation for the coastal account
 1947  may be paid to the corporation on a monthly basis as the
 1948  assessments are collected by the limited apportionment company
 1949  from its insureds, but a limited apportionment company must
 1950  begin collecting the regular assessments not later than 90 days
 1951  after the regular assessments are levied by the corporation, and
 1952  the regular assessments must be paid in full within 15 months
 1953  after being levied by the corporation. A limited apportionment
 1954  company shall collect from its policyholders any emergency
 1955  assessment imposed under sub-subparagraph (b)3.e. The plan must
 1956  provide that, if the office determines that any regular
 1957  assessment will result in an impairment of the surplus of a
 1958  limited apportionment company, the office may direct that all or
 1959  part of such assessment be deferred as provided in subparagraph
 1960  (q)4. However, an emergency assessment to be collected from
 1961  policyholders under sub-subparagraph (b)3.e. may not be limited
 1962  or deferred; or
 1963         b. With respect to the Citizens account, if established by
 1964  the corporation pursuant to sub-subparagraph (b)2.b., any
 1965  assessable insurer with a surplus as to policyholders of $25
 1966  million or less and writing 25 percent or more of its total
 1967  countrywide property insurance premiums in this state may
 1968  petition the office, within the first 90 days of each calendar
 1969  year, to qualify as a limited apportionment company. A limited
 1970  apportionment company shall collect from its policyholders any
 1971  emergency assessment imposed under sub-subparagraph (b)5.c. An
 1972  emergency assessment to be collected from policyholders under
 1973  sub-subparagraph (b)5.c. may not be limited or deferred.
 1974         14. Must provide that the corporation appoint as its
 1975  licensed agents only those agents who throughout such
 1976  appointments also hold an appointment as defined in s. 626.015
 1977  by at least three insurers an insurer who are is authorized to
 1978  write and are is actually writing or renewing personal lines
 1979  residential property coverage, commercial residential property
 1980  coverage, or commercial nonresidential property coverage within
 1981  the state.
 1982         14.15. Must provide a premium payment plan option to its
 1983  policyholders which, at a minimum, allows for quarterly and
 1984  semiannual payment of premiums. A monthly payment plan may, but
 1985  is not required to, be offered.
 1986         15.16. Must limit coverage on mobile homes or manufactured
 1987  homes built before 1994 to actual cash value of the dwelling
 1988  rather than replacement costs of the dwelling.
 1989         16.17. Must provide coverage for manufactured or mobile
 1990  home dwellings. Such coverage must also include the following
 1991  attached structures:
 1992         a. Screened enclosures that are aluminum framed or screened
 1993  enclosures that are not covered by the same or substantially the
 1994  same materials as those of the primary dwelling;
 1995         b. Carports that are aluminum or carports that are not
 1996  covered by the same or substantially the same materials as those
 1997  of the primary dwelling; and
 1998         c. Patios that have a roof covering that is constructed of
 1999  materials that are not the same or substantially the same
 2000  materials as those of the primary dwelling.
 2001  
 2002  The corporation shall make available a policy for mobile homes
 2003  or manufactured homes for a minimum insured value of at least
 2004  $3,000.
 2005         17.18. May provide such limits of coverage as the board
 2006  determines, consistent with the requirements of this subsection.
 2007         18.19. May require commercial property to meet specified
 2008  hurricane mitigation construction features as a condition of
 2009  eligibility for coverage.
 2010         19.20. Must provide that new or renewal policies issued by
 2011  the corporation on or after January 1, 2012, which cover
 2012  sinkhole loss do not include coverage for any loss to
 2013  appurtenant structures, driveways, sidewalks, decks, or patios
 2014  that are directly or indirectly caused by sinkhole activity. The
 2015  corporation shall exclude such coverage using a notice of
 2016  coverage change, which may be included with the policy renewal,
 2017  and not by issuance of a notice of nonrenewal of the excluded
 2018  coverage upon renewal of the current policy.
 2019         20.a.21.a.As of January 1, 2012, unless the Citizens
 2020  account has been established pursuant to sub-subparagraph
 2021  (b)2.b., Must require that the agent obtain from an applicant
 2022  for coverage from the corporation an acknowledgment signed by
 2023  the applicant, which includes, at a minimum, the following
 2024  statement:
 2025  
 2026                ACKNOWLEDGMENT OF POTENTIAL SURCHARGE              
 2027                      AND ASSESSMENT LIABILITY:                    
 2028  
 2029         1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
 2030  CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
 2031  DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
 2032  MY POLICY COULD BE SUBJECT TO SURCHARGES AND ASSESSMENTS, WHICH
 2033  WILL BE DUE AND PAYABLE UPON RENEWAL, CANCELLATION, OR
 2034  TERMINATION OF THE POLICY, AND THAT THE SURCHARGES AND
 2035  ASSESSMENTS COULD BE AS HIGH AS 25 45 PERCENT OF MY PREMIUM, OR
 2036  A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA LEGISLATURE.
 2037         2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
 2038  SURCHARGE, WHICH COULD BE AS HIGH AS 15 45 PERCENT OF MY
 2039  PREMIUM, BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND
 2040  THAT TO BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY
 2041  TO OBTAIN PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR
 2042  RENEWING COVERAGE WITH CITIZENS. I UNDERSTAND THAT PRIVATE
 2043  MARKET INSURANCE RATES ARE REGULATED AND APPROVED BY THE STATE.
 2044         3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
 2045  ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
 2046  INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
 2047  FLORIDA LEGISLATURE.
 2048         4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
 2049  CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
 2050  STATE OF FLORIDA.
 2051  
 2052         b.The corporation must require, if it has established the
 2053  Citizens account pursuant to sub-subparagraph (b)2.b., that the
 2054  agent obtain from an applicant for coverage from the corporation
 2055  the following acknowledgment signed by the applicant, which
 2056  includes, at a minimum, the following statement:
 2057  
 2058                ACKNOWLEDGMENT OF POTENTIAL SURCHARGE              
 2059                      AND ASSESSMENT LIABILITY:                    
 2060  
 2061         1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
 2062  CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
 2063  DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
 2064  MY POLICY COULD BE SUBJECT TO SURCHARGES AND ASSESSMENTS, WHICH
 2065  WILL BE DUE AND PAYABLE UPON RENEWAL, CANCELLATION, OR
 2066  TERMINATION OF THE POLICY, AND THAT THE SURCHARGES AND
 2067  ASSESSMENTS COULD BE AS HIGH AS 25 PERCENT OF MY PREMIUM, OR A
 2068  DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA LEGISLATURE.
 2069         2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
 2070  SURCHARGE, WHICH COULD BE AS HIGH AS 15 PERCENT OF MY PREMIUM,
 2071  BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND THAT TO
 2072  BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN
 2073  PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR RENEWING COVERAGE
 2074  WITH CITIZENS. I UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES
 2075  ARE REGULATED AND APPROVED BY THE STATE.
 2076         3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
 2077  ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
 2078  INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
 2079  FLORIDA LEGISLATURE.
 2080         4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
 2081  CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
 2082  STATE OF FLORIDA.
 2083  
 2084         b.c. The corporation shall maintain, in electronic format
 2085  or otherwise, a copy of the applicant’s signed acknowledgment
 2086  and provide a copy of the statement to the policyholder as part
 2087  of the first renewal after the effective date of sub
 2088  subparagraph a. or sub-subparagraph b., as applicable.
 2089         c.d. The signed acknowledgment form creates a conclusive
 2090  presumption that the policyholder understood and accepted his or
 2091  her potential surcharge and assessment liability as a
 2092  policyholder of the corporation.
 2093         (e) The corporation is subject to s. 287.057 for the
 2094  purchase of commodities and contractual services except as
 2095  otherwise provided in this paragraph. Services provided by
 2096  tradepersons or technical experts to assist a licensed adjuster
 2097  in the evaluation of individual claims are not subject to the
 2098  procurement requirements of this section. Additionally, the
 2099  procurement of financial services providers and underwriters
 2100  must be made pursuant to s. 627.3513. Contracts for goods or
 2101  services valued at or more than $100,000 are subject to approval
 2102  by the board.
 2103         1. The corporation is an agency for purposes of s. 287.057,
 2104  except that, for purposes of s. 287.057(24), the corporation is
 2105  an eligible user.
 2106         a. The authority of the Department of Management Services
 2107  and the Chief Financial Officer under s. 287.057 extends to the
 2108  corporation as if the corporation were an agency.
 2109         b. The executive director of the corporation is the agency
 2110  head under s. 287.057, except for resolution of bid protests for
 2111  which the board would serve as the agency head. The executive
 2112  director of the corporation may assign or appoint a designee to
 2113  act on his or her behalf.
 2114         2. The corporation must provide notice of a decision or
 2115  intended decision concerning a solicitation, contract award, or
 2116  exceptional purchase by electronic posting. Such notice must
 2117  contain the following statement: “Failure to file a protest
 2118  within the time prescribed in this section constitutes a waiver
 2119  of proceedings.”
 2120         a. A person adversely affected by the corporation’s
 2121  decision or intended decision to award a contract pursuant to s.
 2122  287.057(1) or (3)(c) who elects to challenge the decision must
 2123  file a written notice of protest with the executive director of
 2124  the corporation within 72 hours after the corporation posts a
 2125  notice of its decision or intended decision. For a protest of
 2126  the terms, conditions, and specifications contained in a
 2127  solicitation, including provisions governing the methods for
 2128  ranking bids, proposals, replies, awarding contracts, reserving
 2129  rights of further negotiation, or modifying or amending any
 2130  contract, the notice of protest must be filed in writing within
 2131  72 hours after posting the solicitation. Saturdays, Sundays, and
 2132  state holidays are excluded in the computation of the 72-hour
 2133  time period.
 2134         b. A formal written protest must be filed within 10 days
 2135  after the date the notice of protest is filed. The formal
 2136  written protest must state with particularity the facts and law
 2137  upon which the protest is based. Upon receipt of a formal
 2138  written protest that has been timely filed, the corporation must
 2139  stop the solicitation or contract award process until the
 2140  subject of the protest is resolved by final board action unless
 2141  the executive director sets forth in writing particular facts
 2142  and circumstances that require the continuance of the
 2143  solicitation or contract award process without delay in order to
 2144  avoid an immediate and serious danger to the public health,
 2145  safety, or welfare.
 2146         (I) The corporation must provide an opportunity to resolve
 2147  the protest by mutual agreement between the parties within 7
 2148  business days after receipt of the formal written protest.
 2149         (II) If the subject of a protest is not resolved by mutual
 2150  agreement within 7 business days, the corporation’s board must
 2151  transmit the protest to the Division of Administrative Hearings
 2152  and contract with the division to conduct a hearing to determine
 2153  the merits of the protest and to issue a recommended order. The
 2154  contract must provide for the corporation to reimburse the
 2155  division for any costs incurred by the division for court
 2156  reporters, transcript preparation, travel, facility rental, and
 2157  other customary hearing costs in the manner set forth in s.
 2158  120.65(9). The division has jurisdiction to determine the facts
 2159  and law concerning the protest and to issue a recommended order.
 2160  The division’s rules and procedures apply to these proceedings;
 2161  the division’s applicable bond requirements do not apply. The
 2162  protest must be heard by the division at a publicly noticed
 2163  meeting in accordance with procedures established by the
 2164  division.
 2165         c. In a protest of an invitation-to-bid or request-for
 2166  proposals procurement, submissions made after the bid or
 2167  proposal opening which amend or supplement the bid or proposal
 2168  may not be considered. In protesting an invitation-to-negotiate
 2169  procurement, submissions made after the corporation announces
 2170  its intent to award a contract, reject all replies, or withdraw
 2171  the solicitation that amends or supplements the reply may not be
 2172  considered. Unless otherwise provided by law, the burden of
 2173  proof rests with the party protesting the corporation’s action.
 2174  In a competitive-procurement protest, other than a rejection of
 2175  all bids, proposals, or replies, the administrative law judge
 2176  must conduct a de novo proceeding to determine whether the
 2177  corporation’s proposed action is contrary to the corporation’s
 2178  governing statutes, the corporation’s rules or policies, or the
 2179  solicitation specifications. The standard of proof for the
 2180  proceeding is whether the corporation’s action was clearly
 2181  erroneous, contrary to competition, arbitrary, or capricious. In
 2182  any bid-protest proceeding contesting an intended corporation
 2183  action to reject all bids, proposals, or replies, the standard
 2184  of review by the board is whether the corporation’s intended
 2185  action is illegal, arbitrary, dishonest, or fraudulent.
 2186         d. Failure to file a notice of protest or failure to file a
 2187  formal written protest constitutes a waiver of proceedings.
 2188         3. The board, acting as agency head or his or her designee,
 2189  shall consider the recommended order of an administrative law
 2190  judge in a public meeting and take final action on the protest.
 2191  Any further legal remedy lies with the First District Court of
 2192  Appeal.
 2193         (n)1. Rates for coverage provided by the corporation must
 2194  be actuarially sound pursuant to s. 627.062 and not competitive
 2195  with approved rates charged in the admitted voluntary market so
 2196  that the corporation functions as a residual market mechanism to
 2197  provide insurance only when insurance cannot be procured in the
 2198  voluntary market, except as otherwise provided in this
 2199  paragraph. The office shall provide the corporation such
 2200  information as would be necessary to determine whether rates are
 2201  competitive.
 2202  
 2203  The corporation shall file its recommended rates with the office
 2204  at least annually. The corporation shall provide any additional
 2205  information regarding the rates which the office requires. The
 2206  office shall consider the recommendations of the board and issue
 2207  a final order establishing the rates for the corporation within
 2208  45 days after the recommended rates are filed. The corporation
 2209  may not pursue an administrative challenge or judicial review of
 2210  the final order of the office.
 2211         2. In addition to the rates otherwise determined pursuant
 2212  to this paragraph, the corporation shall impose and collect an
 2213  amount equal to the premium tax provided in s. 624.509 to
 2214  augment the financial resources of the corporation.
 2215         3. After the public hurricane loss-projection model under
 2216  s. 627.06281 has been found to be accurate and reliable by the
 2217  Florida Commission on Hurricane Loss Projection Methodology, the
 2218  model shall be considered when establishing the windstorm
 2219  portion of the corporation’s rates. The corporation may use the
 2220  public model results in combination with the results of private
 2221  models to calculate rates for the windstorm portion of the
 2222  corporation’s rates. This subparagraph does not require or allow
 2223  the corporation to adopt rates lower than the rates otherwise
 2224  required or allowed by this paragraph.
 2225         4. The corporation must make a recommended actuarially
 2226  sound rate filing for each personal and commercial line of
 2227  business it writes.
 2228         5. Notwithstanding the board’s recommended rates and the
 2229  office’s final order regarding the corporation’s filed rates
 2230  under subparagraph 1., the corporation shall annually implement
 2231  a rate increase which, except for sinkhole coverage, does not
 2232  exceed the following for any single policy issued by the
 2233  corporation, excluding coverage changes and surcharges:
 2234         a. Twelve percent for 2023.
 2235         b. Thirteen percent for 2024.
 2236         b.c. Fourteen percent for 2025.
 2237         c.d. Fifteen percent for 2026 and all subsequent years.
 2238         6. The corporation may also implement an increase to
 2239  reflect the effect on the corporation of the cash buildup factor
 2240  pursuant to s. 215.555(5)(b).
 2241         7. The corporation’s implementation of rates as prescribed
 2242  in subparagraphs 5. and 8. shall cease for any line of business
 2243  written by the corporation upon the corporation’s implementation
 2244  of actuarially sound rates. Thereafter, the corporation shall
 2245  annually make a recommended actuarially sound rate filing that
 2246  is not competitive with approved rates in the admitted voluntary
 2247  market for each commercial and personal line of business the
 2248  corporation writes.
 2249         8. The following new or renewal personal lines policies
 2250  written on or after November 1, 2023, are not subject to the
 2251  rate increase limitations in subparagraph 5., but may not be
 2252  charged more than 50 percent above, and may not be charged nor
 2253  less than, the prior year’s established rate for the
 2254  corporation:
 2255         a. Policies that do not cover a primary residence;
 2256         b. New policies under which the coverage for the insured
 2257  risk, before the date of application with the corporation, was
 2258  last provided by an insurer determined by the office to be
 2259  unsound or an insurer placed in receivership under chapter 631;
 2260         c. Policies made eligible for coverage from the corporation
 2261  pursuant to sub-subparagraph (a)3.c.; or
 2262         d.c. Subsequent renewals of those policies, including the
 2263  new policies in sub-subparagraph b., under which the coverage
 2264  for the insured risk, before the date of application with the
 2265  corporation, was last provided by an insurer determined by the
 2266  office to be unsound or an insurer placed in receivership under
 2267  chapter 631.
 2268         9. As used in this paragraph, the term “primary residence”
 2269  means the dwelling that is the policyholder’s primary home or is
 2270  a rental property that is the primary home of the tenant, and
 2271  which the policyholder or tenant occupies for more than 9 months
 2272  of each year.
 2273         (o) If coverage in an account, or the Citizens account if
 2274  established by the corporation, is deactivated pursuant to
 2275  paragraph (p), coverage through the corporation shall be
 2276  reactivated by order of the office only under one of the
 2277  following circumstances:
 2278         1. If the market assistance plan receives a minimum of 100
 2279  applications for coverage within a 3-month period, or 200
 2280  applications for coverage within a 1-year period or less for
 2281  residential coverage, unless the market assistance plan provides
 2282  a quotation from authorized admitted carriers at their approved
 2283  filed rates for at least 90 percent of such applicants. Any
 2284  market assistance plan application that is rejected because an
 2285  individual risk is so hazardous as to be uninsurable using the
 2286  criteria specified in subparagraph (c)8. may shall not be
 2287  included in the minimum percentage calculation provided herein.
 2288  In the event that there is a legal or administrative challenge
 2289  to a determination by the office that the conditions of this
 2290  subparagraph have been met for eligibility for coverage in the
 2291  corporation, any eligible risk may obtain coverage during the
 2292  pendency of such challenge.
 2293         2. In response to a state of emergency declared by the
 2294  Governor under s. 252.36, the office may activate coverage by
 2295  order for the period of the emergency upon a finding by the
 2296  office that the emergency significantly affects the availability
 2297  of residential property insurance.
 2298         (p)1. The corporation shall file with the office quarterly
 2299  statements of financial condition, an annual statement of
 2300  financial condition, and audited financial statements in the
 2301  manner prescribed by law. In addition, the corporation shall
 2302  report to the office monthly on the types, premium, exposure,
 2303  and distribution by county of its policies in force, and shall
 2304  submit other reports as the office requires to carry out its
 2305  oversight of the corporation.
 2306         2. The activities of the corporation shall be reviewed at
 2307  least annually by the office to determine whether coverage shall
 2308  be deactivated in an account, or in the Citizens account if
 2309  established by the corporation, on the basis that the conditions
 2310  giving rise to its activation no longer exist.
 2311         (q)1. The corporation shall certify to the office its needs
 2312  for annual assessments as to a particular calendar year, and for
 2313  any interim assessments that it deems to be necessary to sustain
 2314  operations as to a particular year pending the receipt of annual
 2315  assessments. Upon verification, the office shall approve such
 2316  certification, and the corporation shall levy such annual or
 2317  interim assessments. Such assessments shall be prorated, if
 2318  authority to levy exists, as provided in paragraph (b). The
 2319  corporation shall take all reasonable and prudent steps
 2320  necessary to collect the amount of assessments due from each
 2321  assessable insurer, including, if prudent, filing suit to
 2322  collect the assessments, and the office may provide such
 2323  assistance to the corporation it deems appropriate. If the
 2324  corporation is unable to collect an assessment from any
 2325  assessable insurer, the uncollected assessments shall be levied
 2326  as an additional assessment against the assessable insurers and
 2327  any assessable insurer required to pay an additional assessment
 2328  as a result of such failure to pay shall have a cause of action
 2329  against such nonpaying assessable insurer. Assessments shall be
 2330  included as an appropriate factor in the making of rates. The
 2331  failure of a surplus lines agent to collect and remit any
 2332  regular or emergency assessment levied by the corporation is
 2333  considered to be a violation of s. 626.936 and subjects the
 2334  surplus lines agent to the penalties provided in that section.
 2335         2. The governing body of any unit of local government, any
 2336  residents of which are insured by the corporation, may issue
 2337  bonds as defined in s. 125.013 or s. 166.101 from time to time
 2338  to fund an assistance program, in conjunction with the
 2339  corporation, for the purpose of defraying deficits of the
 2340  corporation. In order to avoid needless and indiscriminate
 2341  proliferation, duplication, and fragmentation of such assistance
 2342  programs, any unit of local government, any residents of which
 2343  are insured by the corporation, may provide for the payment of
 2344  losses, regardless of whether or not the losses occurred within
 2345  or outside of the territorial jurisdiction of the local
 2346  government. Revenue bonds under this subparagraph may not be
 2347  issued until validated pursuant to chapter 75, unless a state of
 2348  emergency is declared by executive order or proclamation of the
 2349  Governor pursuant to s. 252.36 making such findings as are
 2350  necessary to determine that it is in the best interests of, and
 2351  necessary for, the protection of the public health, safety, and
 2352  general welfare of residents of this state and declaring it an
 2353  essential public purpose to permit certain municipalities or
 2354  counties to issue such bonds as will permit relief to claimants
 2355  and policyholders of the corporation. Any such unit of local
 2356  government may enter into such contracts with the corporation
 2357  and with any other entity created pursuant to this subsection as
 2358  are necessary to carry out this paragraph. Any bonds issued
 2359  under this subparagraph shall be payable from and secured by
 2360  moneys received by the corporation from emergency assessments
 2361  under sub-subparagraph (b)3.c. (b)3.e., and assigned and pledged
 2362  to or on behalf of the unit of local government for the benefit
 2363  of the holders of such bonds. The funds, credit, property, and
 2364  taxing power of the state or of the unit of local government may
 2365  shall not be pledged for the payment of such bonds.
 2366         3.a. The corporation shall adopt one or more programs
 2367  subject to approval by the office for the reduction of both new
 2368  and renewal writings in the corporation. Beginning January 1,
 2369  2008, any program the corporation adopts for the payment of
 2370  bonuses to an insurer for each risk the insurer removes from the
 2371  corporation shall comply with s. 627.3511(2) and may not exceed
 2372  the amount referenced in s. 627.3511(2) for each risk removed.
 2373  The corporation may consider any prudent and not unfairly
 2374  discriminatory approach to reducing corporation writings, and
 2375  may adopt a credit against assessment liability or other
 2376  liability that provides an incentive for insurers to take risks
 2377  out of the corporation and to keep risks out of the corporation
 2378  by maintaining or increasing voluntary writings in counties or
 2379  areas in which corporation risks are highly concentrated and a
 2380  program to provide a formula under which an insurer voluntarily
 2381  taking risks out of the corporation by maintaining or increasing
 2382  voluntary writings will be relieved wholly or partially from
 2383  assessments under sub-subparagraph (b)3.a. However, any “take
 2384  out bonus” or payment to an insurer must be conditioned on the
 2385  property being insured for at least 5 years by the insurer,
 2386  unless canceled or nonrenewed by the policyholder. If the policy
 2387  is canceled or nonrenewed by the policyholder before the end of
 2388  the 5-year period, the amount of the take-out bonus must be
 2389  prorated for the time period the policy was insured. When the
 2390  corporation enters into a contractual agreement for a take-out
 2391  plan, the producing agent of record of the corporation policy is
 2392  entitled to retain any unearned commission on such policy, and
 2393  the insurer shall either:
 2394         (I) Pay to the producing agent of record of the policy, for
 2395  the first year, an amount which is the greater of the insurer’s
 2396  usual and customary commission for the type of policy written or
 2397  a policy fee equal to the usual and customary commission of the
 2398  corporation; or
 2399         (II) Offer to allow the producing agent of record of the
 2400  policy to continue servicing the policy for a period of not less
 2401  than 1 year and offer to pay the agent the insurer’s usual and
 2402  customary commission for the type of policy written. If the
 2403  producing agent is unwilling or unable to accept appointment by
 2404  the new insurer, the new insurer shall pay the agent in
 2405  accordance with sub-sub-subparagraph (I).
 2406         b. Any credit or exemption from regular assessments adopted
 2407  under this subparagraph shall last no longer than the 3 years
 2408  following the cancellation or expiration of the policy by the
 2409  corporation. With the approval of the office, the board may
 2410  extend such credits for an additional year if the insurer
 2411  guarantees an additional year of renewability for all policies
 2412  removed from the corporation, or for 2 additional years if the
 2413  insurer guarantees 2 additional years of renewability for all
 2414  policies so removed.
 2415         c. There shall be no credit, limitation, exemption, or
 2416  deferment from emergency assessments to be collected from
 2417  policyholders pursuant to sub-subparagraph (b)3.c. sub
 2418  subparagraph (b)3.e. or sub-subparagraph (b)5.c.
 2419         4. The plan shall provide for the deferment, in whole or in
 2420  part, of the assessment of an assessable insurer, other than an
 2421  emergency assessment collected from policyholders pursuant to
 2422  sub-subparagraph (b)3.e. or sub-subparagraph (b)5.c., if the
 2423  office finds that payment of the assessment would endanger or
 2424  impair the solvency of the insurer. In the event an assessment
 2425  against an assessable insurer is deferred in whole or in part,
 2426  the amount by which such assessment is deferred may be assessed
 2427  against the other assessable insurers in a manner consistent
 2428  with the basis for assessments set forth in paragraph (b).
 2429         5. Effective July 1, 2007, in order to evaluate the costs
 2430  and benefits of approved take-out plans, if the corporation pays
 2431  a bonus or other payment to an insurer for an approved take-out
 2432  plan, it shall maintain a record of the address or such other
 2433  identifying information on the property or risk removed in order
 2434  to track if and when the property or risk is later insured by
 2435  the corporation.
 2436         5.6. Any policy taken out, assumed, or removed from the
 2437  corporation is, as of the effective date of the take-out,
 2438  assumption, or removal, direct insurance issued by the insurer
 2439  and not by the corporation, even if the corporation continues to
 2440  service the policies. This subparagraph applies to policies of
 2441  the corporation and not policies taken out, assumed, or removed
 2442  from any other entity.
 2443         6.7. For a policy taken out, assumed, or removed from the
 2444  corporation, the insurer may, for a period of no more than 3
 2445  years, continue to use any of the corporation’s policy forms or
 2446  endorsements that apply to the policy taken out, removed, or
 2447  assumed without obtaining approval from the office for use of
 2448  such policy form or endorsement.
 2449         (v)1. Effective July 1, 2002, policies of the Residential
 2450  Property and Casualty Joint Underwriting Association become
 2451  policies of the corporation. All obligations, rights, assets and
 2452  liabilities of the association, including bonds, note and debt
 2453  obligations, and the financing documents pertaining to them
 2454  become those of the corporation as of July 1, 2002. The
 2455  corporation is not required to issue endorsements or
 2456  certificates of assumption to insureds during the remaining term
 2457  of in-force transferred policies.
 2458         2. Effective July 1, 2002, policies of the Florida
 2459  Windstorm Underwriting Association are transferred to the
 2460  corporation and become policies of the corporation. All
 2461  obligations, rights, assets, and liabilities of the association,
 2462  including bonds, note and debt obligations, and the financing
 2463  documents pertaining to them are transferred to and assumed by
 2464  the corporation on July 1, 2002. The corporation is not required
 2465  to issue endorsements or certificates of assumption to insureds
 2466  during the remaining term of in-force transferred policies.
 2467         3. The Florida Windstorm Underwriting Association and the
 2468  Residential Property and Casualty Joint Underwriting Association
 2469  shall take all actions necessary to further evidence the
 2470  transfers and provide the documents and instruments of further
 2471  assurance as may reasonably be requested by the corporation for
 2472  that purpose. The corporation shall execute assumptions and
 2473  instruments as the trustees or other parties to the financing
 2474  documents of the Florida Windstorm Underwriting Association or
 2475  the Residential Property and Casualty Joint Underwriting
 2476  Association may reasonably request to further evidence the
 2477  transfers and assumptions, which transfers and assumptions,
 2478  however, are effective on the date provided under this paragraph
 2479  whether or not, and regardless of the date on which, the
 2480  assumptions or instruments are executed by the corporation.
 2481  Subject to the relevant financing documents pertaining to their
 2482  outstanding bonds, notes, indebtedness, or other financing
 2483  obligations, the moneys, investments, receivables, choses in
 2484  action, and other intangibles of the Florida Windstorm
 2485  Underwriting Association shall be credited to the coastal
 2486  account of the corporation, and those of the personal lines
 2487  residential coverage account and the commercial lines
 2488  residential coverage account of the Residential Property and
 2489  Casualty Joint Underwriting Association shall be credited to the
 2490  personal lines account and the commercial lines account,
 2491  respectively, of the corporation.
 2492         4. Effective July 1, 2002, a new applicant for property
 2493  insurance coverage who would otherwise have been eligible for
 2494  coverage in the Florida Windstorm Underwriting Association is
 2495  eligible for coverage from the corporation as provided in this
 2496  subsection.
 2497         5. The transfer of all policies, obligations, rights,
 2498  assets, and liabilities from the Florida Windstorm Underwriting
 2499  Association to the corporation and the renaming of the
 2500  Residential Property and Casualty Joint Underwriting Association
 2501  as the corporation does not affect the coverage with respect to
 2502  covered policies as defined in s. 215.555(2)(c) provided to
 2503  these entities by the Florida Hurricane Catastrophe Fund. The
 2504  coverage provided by the fund to the Florida Windstorm
 2505  Underwriting Association based on its exposures as of June 30,
 2506  2002, and each June 30 thereafter, unless the corporation has
 2507  established the Citizens account, shall be redesignated as
 2508  coverage for the coastal account of the corporation.
 2509  Notwithstanding any other provision of law, the coverage
 2510  provided by the fund to the Residential Property and Casualty
 2511  Joint Underwriting Association based on its exposures as of June
 2512  30, 2002, and each June 30 thereafter, unless the corporation
 2513  has established the Citizens account, shall be transferred to
 2514  the personal lines account and the commercial lines account of
 2515  the corporation. Notwithstanding any other provision of law, the
 2516  coastal account, unless the corporation has established the
 2517  Citizens account, shall be treated, for all Florida Hurricane
 2518  Catastrophe Fund purposes, as if it were a separate
 2519  participating insurer with its own exposures, reimbursement
 2520  premium, and loss reimbursement. Likewise, the personal lines
 2521  and commercial lines accounts, unless the corporation has
 2522  established the Citizens account, shall be viewed together, for
 2523  all fund purposes, as if the two accounts were one and represent
 2524  a single, separate participating insurer with its own exposures,
 2525  reimbursement premium, and loss reimbursement. The coverage
 2526  provided by the fund to the corporation shall constitute and
 2527  operate as a full transfer of coverage from the Florida
 2528  Windstorm Underwriting Association and Residential Property and
 2529  Casualty Joint Underwriting Association to the corporation.
 2530         (w) Notwithstanding any other provision of law:
 2531         1. The pledge or sale of, the lien upon, and the security
 2532  interest in any rights, revenues, or other assets of the
 2533  corporation created or purported to be created pursuant to any
 2534  financing documents to secure any bonds or other indebtedness of
 2535  the corporation shall be and remain valid and enforceable,
 2536  notwithstanding the commencement of and during the continuation
 2537  of, and after, any rehabilitation, insolvency, liquidation,
 2538  bankruptcy, receivership, conservatorship, reorganization, or
 2539  similar proceeding against the corporation under the laws of
 2540  this state.
 2541         2. The proceeding does not relieve the corporation of its
 2542  obligation, or otherwise affect its ability to perform its
 2543  obligation, to continue to collect, or levy and collect,
 2544  assessments, policyholder surcharges or other surcharges under
 2545  sub-subparagraph (b)3.j., or any other rights, revenues, or
 2546  other assets of the corporation pledged pursuant to any
 2547  financing documents.
 2548         3. Each such pledge or sale of, lien upon, and security
 2549  interest in, including the priority of such pledge, lien, or
 2550  security interest, any such assessments, policyholder surcharges
 2551  or other surcharges, or other rights, revenues, or other assets
 2552  which are collected, or levied and collected, after the
 2553  commencement of and during the pendency of, or after, any such
 2554  proceeding shall continue unaffected by such proceeding. As used
 2555  in this subsection, the term “financing documents” means any
 2556  agreement or agreements, instrument or instruments, or other
 2557  document or documents now existing or hereafter created
 2558  evidencing any bonds or other indebtedness of the corporation or
 2559  pursuant to which any such bonds or other indebtedness has been
 2560  or may be issued and pursuant to which any rights, revenues, or
 2561  other assets of the corporation are pledged or sold to secure
 2562  the repayment of such bonds or indebtedness, together with the
 2563  payment of interest on such bonds or such indebtedness, or the
 2564  payment of any other obligation or financial product, as defined
 2565  in the plan of operation of the corporation related to such
 2566  bonds or indebtedness.
 2567         4. Any such pledge or sale of assessments, revenues,
 2568  contract rights, or other rights or assets of the corporation
 2569  shall constitute a lien and security interest, or sale, as the
 2570  case may be, that is immediately effective and attaches to such
 2571  assessments, revenues, or contract rights or other rights or
 2572  assets, whether or not imposed or collected at the time the
 2573  pledge or sale is made. Any such pledge or sale is effective,
 2574  valid, binding, and enforceable against the corporation or other
 2575  entity making such pledge or sale, and valid and binding against
 2576  and superior to any competing claims or obligations owed to any
 2577  other person or entity, including policyholders in this state,
 2578  asserting rights in any such assessments, revenues, or contract
 2579  rights or other rights or assets to the extent set forth in and
 2580  in accordance with the terms of the pledge or sale contained in
 2581  the applicable financing documents, whether or not any such
 2582  person or entity has notice of such pledge or sale and without
 2583  the need for any physical delivery, recordation, filing, or
 2584  other action.
 2585         5. As long as the corporation has any bonds outstanding,
 2586  the corporation may not file a voluntary petition under chapter
 2587  9 of the federal Bankruptcy Code or such corresponding chapter
 2588  or sections as may be in effect, from time to time, and a public
 2589  officer or any organization, entity, or other person may not
 2590  authorize the corporation to be or become a debtor under chapter
 2591  9 of the federal Bankruptcy Code or such corresponding chapter
 2592  or sections as may be in effect, from time to time, during any
 2593  such period.
 2594         6. If ordered by a court of competent jurisdiction, the
 2595  corporation may assume policies or otherwise provide coverage
 2596  for policyholders of an insurer placed in liquidation under
 2597  chapter 631, under such forms, rates, terms, and conditions as
 2598  the corporation deems appropriate, subject to approval by the
 2599  office.
 2600         (x)1. The following records of the corporation are
 2601  confidential and exempt from the provisions of s. 119.07(1) and
 2602  s. 24(a), Art. I of the State Constitution:
 2603         a. Underwriting files, except that a policyholder or an
 2604  applicant shall have access to his or her own underwriting
 2605  files. Confidential and exempt underwriting file records may
 2606  also be released to other governmental agencies upon written
 2607  request and demonstration of need; such records held by the
 2608  receiving agency remain confidential and exempt as provided
 2609  herein.
 2610         b. Claims files, until termination of all litigation and
 2611  settlement of all claims arising out of the same incident,
 2612  although portions of the claims files may remain exempt, as
 2613  otherwise provided by law. Confidential and exempt claims file
 2614  records may be released to other governmental agencies upon
 2615  written request and demonstration of need; such records held by
 2616  the receiving agency remain confidential and exempt as provided
 2617  herein.
 2618         c. Records obtained or generated by an internal auditor
 2619  pursuant to a routine audit, until the audit is completed, or if
 2620  the audit is conducted as part of an investigation, until the
 2621  investigation is closed or ceases to be active. An investigation
 2622  is considered “active” while the investigation is being
 2623  conducted with a reasonable, good faith belief that it could
 2624  lead to the filing of administrative, civil, or criminal
 2625  proceedings.
 2626         d. Matters reasonably encompassed in privileged attorney
 2627  client communications.
 2628         e. Proprietary information licensed to the corporation
 2629  under contract and the contract provides for the confidentiality
 2630  of such proprietary information.
 2631         f. All information relating to the medical condition or
 2632  medical status of a corporation employee which is not relevant
 2633  to the employee’s capacity to perform his or her duties, except
 2634  as otherwise provided in this paragraph. Information that is
 2635  exempt shall include, but is not limited to, information
 2636  relating to workers’ compensation, insurance benefits, and
 2637  retirement or disability benefits.
 2638         g. Upon an employee’s entrance into the employee assistance
 2639  program, a program to assist any employee who has a behavioral
 2640  or medical disorder, substance abuse problem, or emotional
 2641  difficulty that affects the employee’s job performance, all
 2642  records relative to that participation shall be confidential and
 2643  exempt from the provisions of s. 119.07(1) and s. 24(a), Art. I
 2644  of the State Constitution, except as otherwise provided in s.
 2645  112.0455(11).
 2646         h. Information relating to negotiations for financing,
 2647  reinsurance, depopulation, or contractual services, until the
 2648  conclusion of the negotiations.
 2649         i. Minutes of closed meetings regarding underwriting files,
 2650  and minutes of closed meetings regarding an open claims file
 2651  until termination of all litigation and settlement of all claims
 2652  with regard to that claim, except that information otherwise
 2653  confidential or exempt by law shall be redacted.
 2654         2. If an authorized insurer is considering underwriting a
 2655  risk insured by the corporation, relevant underwriting files and
 2656  confidential claims files may be released to the insurer
 2657  provided the insurer agrees in writing, notarized and under
 2658  oath, to maintain the confidentiality of such files. If a file
 2659  is transferred to an insurer, that file is no longer a public
 2660  record because it is not held by an agency subject to the
 2661  provisions of the public records law. Underwriting files and
 2662  confidential claims files may also be released to staff and the
 2663  board of governors of the market assistance plan established
 2664  pursuant to s. 627.3515, who must retain the confidentiality of
 2665  such files, except such files may be released to authorized
 2666  insurers that are considering assuming the risks to which the
 2667  files apply, provided the insurer agrees in writing, notarized
 2668  and under oath, to maintain the confidentiality of such files.
 2669  Finally, the corporation or the board or staff of the market
 2670  assistance plan may make the following information obtained from
 2671  underwriting files and confidential claims files available to an
 2672  entity that has obtained a permit to become an authorized
 2673  insurer, a reinsurer that may provide reinsurance under s.
 2674  624.610, a licensed reinsurance broker, a licensed rating
 2675  organization, a modeling company, a licensed surplus lines
 2676  agent, or a licensed general lines insurance agent: name,
 2677  address, and telephone number of the residential property owner
 2678  or insured; location of the risk; rating information; loss
 2679  history; and policy type. The receiving person must retain the
 2680  confidentiality of the information received and may use the
 2681  information only for the purposes of developing a take-out plan
 2682  or a rating plan to be submitted to the office for approval or
 2683  otherwise analyzing the underwriting of a risk or risks insured
 2684  by the corporation on behalf of the private insurance market. A
 2685  licensed surplus lines agent or licensed general lines insurance
 2686  agent may not use such information for the direct solicitation
 2687  of policyholders.
 2688         3. A policyholder who has filed suit against the
 2689  corporation has the right to discover the contents of his or her
 2690  own claims file to the same extent that discovery of such
 2691  contents would be available from a private insurer in litigation
 2692  as provided by the Florida Rules of Civil Procedure, the Florida
 2693  Evidence Code, and other applicable law. Pursuant to subpoena, a
 2694  third party has the right to discover the contents of an
 2695  insured’s or applicant’s underwriting or claims file to the same
 2696  extent that discovery of such contents would be available from a
 2697  private insurer by subpoena as provided by the Florida Rules of
 2698  Civil Procedure, the Florida Evidence Code, and other applicable
 2699  law, and subject to any confidentiality protections requested by
 2700  the corporation and agreed to by the seeking party or ordered by
 2701  the court. The corporation may release confidential underwriting
 2702  and claims file contents and information as it deems necessary
 2703  and appropriate to underwrite or service insurance policies and
 2704  claims, subject to any confidentiality protections deemed
 2705  necessary and appropriate by the corporation.
 2706         4. Portions of meetings of the corporation are exempt from
 2707  the provisions of s. 286.011 and s. 24(b), Art. I of the State
 2708  Constitution wherein confidential underwriting files or
 2709  confidential open claims files are discussed. All portions of
 2710  corporation meetings which are closed to the public shall be
 2711  recorded by a court reporter. The court reporter shall record
 2712  the times of commencement and termination of the meeting, all
 2713  discussion and proceedings, the names of all persons present at
 2714  any time, and the names of all persons speaking. No portion of
 2715  any closed meeting shall be off the record. Subject to the
 2716  provisions hereof and s. 119.07(1)(d)-(f), the court reporter’s
 2717  notes of any closed meeting shall be retained by the corporation
 2718  for a minimum of 5 years. A copy of the transcript, less any
 2719  exempt matters, of any closed meeting wherein claims are
 2720  discussed shall become public as to individual claims after
 2721  settlement of the claim.
 2722         (z) In enacting the provisions of this section, the
 2723  Legislature recognizes that both the Florida Windstorm
 2724  Underwriting Association and the Residential Property and
 2725  Casualty Joint Underwriting Association have entered into
 2726  financing arrangements that obligate each entity to service its
 2727  debts and maintain the capacity to repay funds secured under
 2728  these financing arrangements. It is the intent of the
 2729  Legislature that nothing in this section be construed to
 2730  compromise, diminish, or interfere with the rights of creditors
 2731  under such financing arrangements. It is further the intent of
 2732  the Legislature to preserve the obligations of the Florida
 2733  Windstorm Underwriting Association and Residential Property and
 2734  Casualty Joint Underwriting Association with regard to
 2735  outstanding financing arrangements, with such obligations
 2736  passing entirely and unchanged to the corporation and,
 2737  specifically, to the Citizens applicable account of the
 2738  corporation. So long as any bonds, notes, indebtedness, or other
 2739  financing obligations of the Florida Windstorm Underwriting
 2740  Association or the Residential Property and Casualty Joint
 2741  Underwriting Association are outstanding, under the terms of the
 2742  financing documents pertaining to them, the governing board of
 2743  the corporation shall have and shall exercise the authority to
 2744  levy, charge, collect, and receive all premiums, assessments,
 2745  surcharges, charges, revenues, and receipts that the
 2746  associations had authority to levy, charge, collect, or receive
 2747  under the provisions of subsection (2) and this subsection,
 2748  respectively, as they existed on January 1, 2002, to provide
 2749  moneys, without exercise of the authority provided by this
 2750  subsection, in at least the amounts, and by the times, as would
 2751  be provided under those former provisions of subsection (2) or
 2752  this subsection, respectively, so that the value, amount, and
 2753  collectability of any assets, revenues, or revenue source
 2754  pledged or committed to, or any lien thereon securing such
 2755  outstanding bonds, notes, indebtedness, or other financing
 2756  obligations will not be diminished, impaired, or adversely
 2757  affected by the amendments made by this act and to permit
 2758  compliance with all provisions of financing documents pertaining
 2759  to such bonds, notes, indebtedness, or other financing
 2760  obligations, or the security or credit enhancement for them, and
 2761  any reference in this subsection to bonds, notes, indebtedness,
 2762  financing obligations, or similar obligations, of the
 2763  corporation shall include like instruments or contracts of the
 2764  Florida Windstorm Underwriting Association and the Residential
 2765  Property and Casualty Joint Underwriting Association to the
 2766  extent not inconsistent with the provisions of the financing
 2767  documents pertaining to them.
 2768         (ii) The corporation shall revise the programs adopted
 2769  pursuant to sub-subparagraph (q)3.a. for personal lines
 2770  residential policies to maximize policyholder options and
 2771  encourage increased participation by insurers and agents. After
 2772  January 1, 2017, a policy may not be taken out of the
 2773  corporation unless the provisions of this paragraph are met.
 2774         1. The corporation must publish a periodic schedule of
 2775  cycles during which an insurer may identify, and notify the
 2776  corporation of, policies that the insurer is requesting to take
 2777  out. A request must include a description of the coverage
 2778  offered and an estimated premium and must be submitted to the
 2779  corporation in a form and manner prescribed by the corporation.
 2780         2. The corporation must maintain and make available to the
 2781  agent of record a consolidated list of all insurers requesting
 2782  to take out a policy. The list must include a description of the
 2783  coverage offered and the estimated premium for each take-out
 2784  request.
 2785         3. If a policyholder receives a take-out offer from an
 2786  authorized insurer, the risk is no longer eligible for coverage
 2787  with the corporation unless the premium for coverage from the
 2788  authorized insurer is more than 20 percent greater than the
 2789  renewal premium for comparable coverage from the corporation
 2790  pursuant to sub-subparagraph (c)5.d. (c)5.c. This subparagraph
 2791  applies to take-out offers that are part of an application to
 2792  participate in depopulation submitted to the office on or after
 2793  January 1, 2023. This subparagraph only applies to a policy that
 2794  covers a primary residence.
 2795         4. The corporation must provide written notice to the
 2796  policyholder and the agent of record regarding all insurers
 2797  requesting to take out the policy. The notice must be in a
 2798  format prescribed by the corporation and include, for each take
 2799  out offer:
 2800         a. The amount of the estimated premium;
 2801         b. A description of the coverage; and
 2802         c. A comparison of the estimated premium and coverage
 2803  offered by the insurer to the estimated premium and coverage
 2804  provided by the corporation.
 2805         (nn)The corporation may share its claims data with the
 2806  National Insurance Crime Bureau, provided that the National
 2807  Insurance Crime Bureau agrees to maintain the confidentiality of
 2808  such documents as otherwise provided for in paragraph (x).
 2809         (7)TRADEMARKS, COPYRIGHTS, OR PATENTS.—Notwithstanding any
 2810  other law, the corporation is authorized, in its own name, to:
 2811         (a) Perform all things necessary to secure letters of
 2812  patent, copyrights, or trademarks on any work products and
 2813  enforce its rights therein.
 2814         (b) License, lease, assign, or otherwise give written
 2815  consent to any person, firm, or corporation for the manufacture
 2816  or use thereof, on a royalty basis or for such other
 2817  consideration as the corporation deems proper.
 2818         (c) Take any action necessary, including legal action, to
 2819  protect trademarks, copyrights, or patents against improper or
 2820  unlawful use or infringement.
 2821         (d) Enforce the collection of any sums due the corporation
 2822  for the manufacture or use thereof by any other party.
 2823         (e) Sell any of its trademarks, copyrights, or patents and
 2824  execute all instruments necessary to consummate any such sale.
 2825         (f) Do all other acts necessary and proper for the
 2826  execution of powers and duties herein conferred upon the
 2827  corporation in order to administer this subsection.
 2828         Section 3. Paragraphs (a), (b), and (c) of subsection (3)
 2829  and paragraphs (d), (e), and (f) of subsection (6) of section
 2830  627.3511, Florida Statutes, are amended to read:
 2831         627.3511 Depopulation of Citizens Property Insurance
 2832  Corporation.—
 2833         (3) EXEMPTION FROM DEFICIT ASSESSMENTS.—
 2834         (a) The calculation of an insurer’s assessment liability
 2835  under s. 627.351(6)(b)3.a. shall, for an insurer that in any
 2836  calendar year removes 50,000 or more risks from the Citizens
 2837  Property Insurance Corporation, either by issuance of a policy
 2838  upon expiration or cancellation of the corporation policy or by
 2839  assumption of the corporation’s obligations with respect to in
 2840  force policies, exclude such removed policies for the succeeding
 2841  3 years, as follows:
 2842         1. In the first year following removal of the risks, the
 2843  risks are excluded from the calculation to the extent of 100
 2844  percent.
 2845         2. In the second year following removal of the risks, the
 2846  risks are excluded from the calculation to the extent of 75
 2847  percent.
 2848         3. In the third year following removal of the risks, the
 2849  risks are excluded from the calculation to the extent of 50
 2850  percent.
 2851  
 2852  If the removal of risks is accomplished through assumption of
 2853  obligations with respect to in-force policies, the corporation
 2854  shall pay to the assuming insurer all unearned premium with
 2855  respect to such policies less any policy acquisition costs
 2856  agreed to by the corporation and assuming insurer. The term
 2857  “policy acquisition costs” is defined as costs of issuance of
 2858  the policy by the corporation which includes agent commissions,
 2859  servicing company fees, and premium tax. This paragraph does not
 2860  apply to an insurer that, at any time within 5 years before
 2861  removing the risks, had a market share in excess of 0.1 percent
 2862  of the statewide aggregate gross direct written premium for any
 2863  line of property insurance, or to an affiliate of such an
 2864  insurer. This paragraph does not apply unless either at least 40
 2865  percent of the risks removed from the corporation are located in
 2866  Miami-Dade, Broward, and Palm Beach Counties, or at least 30
 2867  percent of the risks removed from the corporation are located in
 2868  such counties and an additional 50 percent of the risks removed
 2869  from the corporation are located in other coastal counties.
 2870         (b) An insurer that first wrote personal lines residential
 2871  property coverage in this state on or after July 1, 1994, is
 2872  exempt from liability regular deficit assessments imposed
 2873  pursuant to s. 627.351(6)(b)3.a., but not emergency assessments
 2874  collected from policyholders pursuant to s. 627.351(6)(b)3.c. s.
 2875  627.351(6)(b)3.e., of the Citizens Property Insurance
 2876  Corporation until the earlier of the following:
 2877         1. The end of the calendar year in which it first wrote 0.5
 2878  percent or more of the statewide aggregate direct written
 2879  premium for any line of residential property coverage; or
 2880         2. December 31, 1997, or December 31 of the third year in
 2881  which it wrote such coverage in this state, whichever is later.
 2882         (c) Other than an insurer that is exempt under paragraph
 2883  (b), an insurer that in any calendar year increases its total
 2884  structure exposure subject to wind coverage by 25 percent or
 2885  more over its exposure for the preceding calendar year is, with
 2886  respect to that year, exempt from liability deficit assessments
 2887  imposed pursuant to s. 627.351(6)(b)3.a., but not from emergency
 2888  assessments collected from policyholders pursuant to s.
 2889  627.351(6)(b)3.c. s. 627.351(6)(b)3.e., of the Citizens Property
 2890  Insurance Corporation attributable to such increase in exposure.
 2891         (6) COMMERCIAL RESIDENTIAL TAKE-OUT PLANS.—
 2892         (d) The calculation of an insurer’s regular assessment
 2893  liability under s. 627.351(6)(b)3.a., but not emergency
 2894  assessments collected from policyholders pursuant to s.
 2895  627.351(6)(b)3.c. s. 627.351(6)(b)3.e., shall, with respect to
 2896  commercial residential policies removed from the corporation
 2897  under an approved take-out plan, exclude such removed policies
 2898  for the succeeding 3 years, as follows:
 2899         1. In the first year following removal of the policies, the
 2900  policies are excluded from the calculation to the extent of 100
 2901  percent.
 2902         2. In the second year following removal of the policies,
 2903  the policies are excluded from the calculation to the extent of
 2904  75 percent.
 2905         3. In the third year following removal of the policies, the
 2906  policies are excluded from the calculation to the extent of 50
 2907  percent.
 2908         (e) An insurer that first wrote commercial residential
 2909  property coverage in this state on or after June 1, 1996, is
 2910  exempt from liability regular assessments under s.
 2911  627.351(6)(b)3.a., but not from emergency assessments collected
 2912  from policyholders pursuant to s. 627.351(6)(b)3.c. s.
 2913  627.351(6)(b)3.e., with respect to commercial residential
 2914  policies until the earlier of:
 2915         1. The end of the calendar year in which such insurer first
 2916  wrote 0.5 percent or more of the statewide aggregate direct
 2917  written premium for commercial residential property coverage; or
 2918         2. December 31 of the third year in which such insurer
 2919  wrote commercial residential property coverage in this state.
 2920         (f) An insurer that is not otherwise exempt from liability
 2921  regular assessments under s. 627.351(6)(b)3.a. with respect to
 2922  commercial residential policies is, for any calendar year in
 2923  which such insurer increased its total commercial residential
 2924  hurricane exposure by 25 percent or more over its exposure for
 2925  the preceding calendar year, exempt from liability regular
 2926  assessments under s. 627.351(6)(b)3.a., but not emergency
 2927  assessments collected from policyholders pursuant to s.
 2928  627.351(6)(b)3.c. s. 627.351(6)(b)3.e., attributable to such
 2929  increased exposure.
 2930         Section 4. Subsections (5), (6), and (7) of section
 2931  627.3518, Florida Statutes, are amended to read:
 2932         627.3518 Citizens Property Insurance Corporation
 2933  policyholder eligibility clearinghouse program.—The purpose of
 2934  this section is to provide a framework for the corporation to
 2935  implement a clearinghouse program by January 1, 2014.
 2936         (5) Notwithstanding s. 627.3517, any applicant for new
 2937  coverage from the corporation is not eligible for coverage from
 2938  the corporation if provided an offer of coverage from an
 2939  authorized insurer through the program at a premium that is at
 2940  or below the eligibility threshold for applicants for new
 2941  coverage of a primary residence established in s.
 2942  627.351(6)(c)5.a., or for applicants for new coverage of a risk
 2943  that is not a primary residence established in s.
 2944  627.351(6)(c)5.b. Whenever an offer of coverage for a personal
 2945  lines risk is received for a policyholder of the corporation at
 2946  renewal from an authorized insurer through the program which is
 2947  at or below the eligibility threshold for primary residences of
 2948  policyholders of the corporation established in s.
 2949  627.351(6)(c)5.a., or the eligibility threshold for risks that
 2950  are not primary residences of policyholders of the corporation
 2951  established in s. 627.351(6)(c)5.b., the risk is not eligible
 2952  for coverage with the corporation. In the event an offer of
 2953  coverage for a new applicant is received from an authorized
 2954  insurer through the program, and the premium offered exceeds the
 2955  eligibility threshold for applicants for new coverage of a
 2956  primary residence established in s. 627.351(6)(c)5.a., or the
 2957  eligibility threshold for applicants for new coverage on a risk
 2958  that is not a primary residence established in s.
 2959  627.351(6)(c)5.b., the applicant or insured may elect to accept
 2960  such coverage, or may elect to accept or continue coverage with
 2961  the corporation. In the event an offer of coverage for a
 2962  personal lines risk is received from an authorized insurer at
 2963  renewal through the program, and the premium offered exceeds the
 2964  eligibility threshold for primary residences of policyholders of
 2965  the corporation established in s. 627.351(6)(c)5.a., or exceeds
 2966  the eligibility threshold for risks that are not primary
 2967  residences of policyholders of the corporation established in s.
 2968  627.351(6)(c)5.b., the insured may elect to accept such
 2969  coverage, or may elect to accept or continue coverage with the
 2970  corporation. Section 627.351(6)(c)5.a.(I) and b.(I) does not
 2971  apply to an offer of coverage from an authorized insurer
 2972  obtained through the program. As used in this subsection, the
 2973  term “primary residence” has the same meaning as in s.
 2974  627.351(6)(c)2.a.
 2975         (6) Independent insurance agents submitting new
 2976  applications for coverage or that are the agent of record on a
 2977  renewal policy submitted to the program:
 2978         (a) Are granted and must maintain ownership and the
 2979  exclusive use of expirations, records, or other written or
 2980  electronic information directly related to such applications or
 2981  renewals written through the corporation or through an insurer
 2982  participating in the program, notwithstanding s.
 2983  627.351(6)(c)5.a.(I)(B) and (II)(B) or s.
 2984  627.351(6)(c)5.b.(I)(B) and (II)(B). Such ownership is granted
 2985  for as long as the insured remains with the agency or until sold
 2986  or surrendered in writing by the agent. Contracts with the
 2987  corporation or required by the corporation must not amend,
 2988  modify, interfere with, or limit such rights of ownership. Such
 2989  expirations, records, or other written or electronic information
 2990  may be used to review an application, issue a policy, or for any
 2991  other purpose necessary for placing such business through the
 2992  program.
 2993         (b) May not be required to be appointed by any insurer
 2994  participating in the program for policies written solely through
 2995  the program, notwithstanding the provisions of s. 626.112.
 2996         (c) May accept an appointment from any insurer
 2997  participating in the program.
 2998         (d) May enter into either a standard or limited agency
 2999  agreement with the insurer, at the insurer’s option.
 3000  
 3001  Applicants ineligible for coverage in accordance with subsection
 3002  (5) remain ineligible if their independent agent is unwilling or
 3003  unable to enter into a standard or limited agency agreement with
 3004  an insurer participating in the program.
 3005         (7) Exclusive agents submitting new applications for
 3006  coverage or that are the agent of record on a renewal policy
 3007  submitted to the program:
 3008         (a) Must maintain ownership and the exclusive use of
 3009  expirations, records, or other written or electronic information
 3010  directly related to such applications or renewals written
 3011  through the corporation or through an insurer participating in
 3012  the program, notwithstanding s. 627.351(6)(c)5.a.(I)(B) and
 3013  (II)(B) or s. 627.351(6)(c)5.b.(I)(B) and (II)(B). Contracts
 3014  with the corporation or required by the corporation must not
 3015  amend, modify, interfere with, or limit such rights of
 3016  ownership. Such expirations, records, or other written or
 3017  electronic information may be used to review an application,
 3018  issue a policy, or for any other purpose necessary for placing
 3019  such business through the program.
 3020         (b) May not be required to be appointed by any insurer
 3021  participating in the program for policies written solely through
 3022  the program, notwithstanding the provisions of s. 626.112.
 3023         (c) Must only facilitate the placement of an offer of
 3024  coverage from an insurer whose limited servicing agreement is
 3025  approved by that exclusive agent’s exclusive insurer.
 3026         (d) May enter into a limited servicing agreement with the
 3027  insurer making an offer of coverage, and only after the
 3028  exclusive agent’s insurer has approved the limited servicing
 3029  agreement terms. The exclusive agent’s insurer must approve a
 3030  limited service agreement for the program for any insurer for
 3031  which it has approved a service agreement for other purposes.
 3032  
 3033  Applicants ineligible for coverage in accordance with subsection
 3034  (5) remain ineligible if their exclusive agent is unwilling or
 3035  unable to enter into a standard or limited agency agreement with
 3036  an insurer making an offer of coverage to that applicant.
 3037         Section 5. Except as otherwise expressly provided in this
 3038  act and except for this section, which shall take effect upon
 3039  becoming a law, this act shall take effect July 1, 2024.