Amendment
Bill No. 1486

Amendment No. 865571

CHAMBER ACTION
Senate		House
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1	Representative Ross offered the following:
2
3	Amendment (with title amendment)
4	Delete everything after the enacting clause and insert:
5	Section 1.  Effective June 1, 2005, paragraph (e) of
6	subsection (2) of section 215.555, Florida Statutes, is amended
7	to read:
8	215.555  Florida Hurricane Catastrophe Fund.--
9	(2)  DEFINITIONS.--As used in this section:
10	(e)  "Retention" means the amount of losses below which an
11	insurer is not entitled to reimbursement from the fund. An
12	insurer's retention shall be calculated as follows:
13	1.  The board shall calculate and report to each insurer
14	the retention multiples for that year. For the contract year
15	beginning June 1, 2005 2004, the retention multiple shall be
16	equal to $4.5 billion divided by the total estimated
17	reimbursement premium for the contract year; for subsequent
18	years, the retention multiple shall be equal to $4.5 billion,
19	adjusted based upon the reported exposure from the prior
20	contract year to reflect the percentage growth in exposure to
21	the fund for covered policies since 2004 2003, divided by the
22	total estimated reimbursement premium for the contract year.
23	Total reimbursement premium for purposes of the calculation
24	under this subparagraph shall be estimated using the assumption
25	that all insurers have selected the 90-percent coverage level.
26	2.  The retention multiple as determined under subparagraph
27	1. shall be adjusted to reflect the coverage level elected by
28	the insurer. For insurers electing the 90-percent coverage
29	level, the adjusted retention multiple is 100 percent of the
30	amount determined under subparagraph 1. For insurers electing
31	the 75-percent coverage level, the retention multiple is 120
32	percent of the amount determined under subparagraph 1. For
33	insurers electing the 45-percent coverage level, the adjusted
34	retention multiple is 200 percent of the amount determined under
35	subparagraph 1.
36	3.  An insurer shall determine its provisional retention by
37	multiplying its provisional reimbursement premium by the
38	applicable adjusted retention multiple and shall determine its
39	actual retention by multiplying its actual reimbursement premium
40	by the applicable adjusted retention multiple.
41	4.  For insurers who experience multiple covered events
42	causing loss during the contract year, beginning June 1, 2005,
43	each insurer's full retention shall be applied to each of the
44	covered events causing the two largest losses for that insurer.
45	For each other covered event resulting in losses, the insurer's
46	retention shall be reduced to one-third of the full retention.
47	The reimbursement contract shall provide for the reimbursement
48	of losses for each covered event based on the full retention
49	with adjustments made to reflect the reduced retentions after
50	January 1 of the contract year provided the insurer reports its
51	losses as specified in the reimbursement contract.
52	Section 2.  Effective July 1, 2005, section 215.559,
53	Florida Statutes, is amended to read:
54	215.559  Hurricane Loss Mitigation Program.--
55	(1)  There is created a Hurricane Loss Mitigation Program.
56	The Legislature shall annually appropriate $10 million of the
57	moneys authorized for appropriation under s. 215.555(7)(c) from
58	the Florida Hurricane Catastrophe Fund to the Department of
59	Community Affairs for the purposes set forth in this section.
60	(2)(a)  Seven million dollars in funds provided in
61	subsection (1) shall be used for programs to improve the wind
62	resistance of residences and mobile homes, including loans,
63	subsidies, grants, demonstration projects, and direct
64	assistance; cooperative programs with local governments and the
65	Federal Government; and other efforts to prevent or reduce
66	losses or reduce the cost of rebuilding after a disaster.
67	(b)  Three million dollars in funds provided in subsection
68	(1) shall be used to retrofit existing facilities used as public
69	hurricane shelters. The department must prioritize the use of
70	these funds for projects included in the September 1, 2000,
71	version of the Shelter Retrofit Report prepared in accordance
72	with s. 252.385(3), and each annual report thereafter. The
73	department must give funding priority to projects in regional
74	planning council regions that have shelter deficits and to
75	projects that maximize use of state funds.
76	(3)  By the 2006-2007 fiscal year, the Department of
77	Community Affairs shall develop a low-interest loan program for
78	homeowners and mobile home owners to retrofit their homes with
79	fixtures or apply construction techniques that have been
80	demonstrated to reduce the amount of damage or loss due to a
81	hurricane. Funding for the program shall be used to subsidize or
82	guaranty private-sector loans for this purpose to qualified
83	homeowners by financial institutions chartered by the state or
84	Federal Government. The department may enter into contracts with
85	financial institutions for this purpose. The department shall
86	establish criteria for determining eligibility for the loans and
87	selecting recipients, standards for retrofitting homes or mobile
88	homes, limitations on loan subsidies and loan guaranties, and
89	other terms and conditions of the program, which must be
90	specified in the department's report to the Legislature on
91	January 1, 2006, required by subsection (8). For the 2005-2006
92	fiscal year, the Department of Community Affairs may use up to
93	$1 million of the funds appropriated pursuant to paragraph
94	(2)(a) to begin the low-interest loan program as a pilot project
95	in one or more counties. The Department of Financial Services,
96	the Office of Financial Regulation, the Florida Housing Finance
97	Corporation, and the Office of Tourism, Trade, and Economic
98	Development shall assist the Department of Community Affairs in
99	establishing the program and pilot project. The department may
100	use up to 2.5 percent of the funds appropriated in any given
101	fiscal year for administering the loan program. The department
102	may adopt rules to implement the program.
103	(4)(3)  Forty percent of the total appropriation in
104	paragraph (2)(a) shall be used to inspect and improve tie-downs
105	for mobile homes. Within 30 days after the effective date of
106	that appropriation, the department shall contract with a public
107	higher educational institution in this state which has previous
108	experience in administering the programs set forth in this
109	subsection to serve as the administrative entity and fiscal
110	agent pursuant to s. 216.346 for the purpose of administering
111	the programs set forth in this subsection in accordance with
112	established policy and procedures. The administrative entity
113	working with the advisory council set up under subsection (6)
114	(5) shall develop a list of mobile home parks and counties that
115	may be eligible to participate in the tie-down program.
116	(5)(4)  Of moneys provided to the Department of Community
117	Affairs in paragraph (2)(a), 10 percent shall be allocated to a
118	Type I Center within the State University System dedicated to
119	hurricane research. The Type I Center shall develop a
120	preliminary work plan approved by the advisory council set forth
121	in subsection (6) (5) to eliminate the state and local barriers
122	to upgrading existing mobile homes and communities, research and
123	develop a program for the recycling of existing older mobile
124	homes, and support programs of research and development relating
125	to hurricane loss reduction devices and techniques for site-
126	built residences. The State University System also shall consult
127	with the Department of Community Affairs and assist the
128	department with the report required under subsection (8) (7).
129	(6)(5)  Except for the program set forth in subsection (3),
130	The Department of Community Affairs shall develop the programs
131	set forth in this section in consultation with an advisory
132	council consisting of a representative designated by the Chief
133	Financial Officer, a representative designated by the Florida
134	Home Builders Association, a representative designated by the
135	Florida Insurance Council, a representative designated by the
136	Federation of Manufactured Home Owners, a representative
137	designated by the Florida Association of Counties, and a
138	representative designated by the Florida Manufactured Housing
139	Association.
140	(7)(6)  Moneys provided to the Department of Community
141	Affairs under this section are intended to supplement other
142	funding sources of the Department of Community Affairs and may
143	not supplant other funding sources of the Department of
144	Community Affairs.
145	(8)(7)  On January 1st of each year, the Department of
146	Community Affairs shall provide a full report and accounting of
147	activities under this section and an evaluation of such
148	activities to the Speaker of the House of Representatives, the
149	President of the Senate, and the Majority and Minority Leaders
150	of the House of Representatives and the Senate.
151	(9)(8)  This section is repealed June 30, 2011.
152	Section 3.  Subsections (4) and (5) of section 627.062,
153	Florida Statutes, are amended to read:
154	627.062  Rate standards.--
155	(4)  The establishment of any rate, rating classification,
156	rating plan or schedule, or variation thereof in violation of
157	part IX of chapter 626 is also in violation of this section. In
158	order to enhance the ability of consumers to compare premiums
159	and to increase the accuracy and usefulness of rate-comparison
160	information provided by the office to the public, the office
161	shall develop a proposed standard rating territory plan to be
162	used by all authorized property and casualty insurers for
163	residential property insurance. In adopting the proposed plan,
164	the office may consider geographical characteristics relevant to
165	risk, county lines, major roadways, existing rating territories
166	used by a significant segment of the market, and other relevant
167	factors. Such plan shall be submitted to the President of the
168	Senate and the Speaker of the House of Representatives by
169	January 15, 2006. The plan may not be implemented unless
170	authorized by further act of the Legislature.
171	(5)  With respect to a rate filing involving coverage of
172	the type for which the insurer is required to pay a
173	reimbursement premium to the Florida Hurricane Catastrophe Fund,
174	the insurer may fully recoup in its property insurance premiums
175	any reimbursement premiums paid to the Florida Hurricane
176	Catastrophe Fund, together with reasonable costs of other
177	reinsurance, but may not recoup reinsurance costs that duplicate
178	coverage provided by the Florida Hurricane Catastrophe Fund. An
179	insurer may not recoup more than 1 year of reimbursement premium
180	at a time. Any under-recoupment from the prior year may be added
181	to the following year's reimbursement premium and any over-
182	recoupment shall be subtracted from the following year's
183	reimbursement premium.
184	Section 4.  Paragraph (c) of subsection (1) and paragraph
185	(c) of subsection (3) of section 627.0628, Florida Statutes, are
186	amended to read:
187	627.0628  Florida Commission on Hurricane Loss Projection
188	Methodology.--
189	(1)  LEGISLATIVE FINDINGS AND INTENT.--
190	(c)  It is the intent of the Legislature to create the
191	Florida Commission on Hurricane Loss Projection Methodology as a
192	panel of experts to provide the most actuarially sophisticated
193	guidelines and standards for projection of hurricane losses
194	possible, given the current state of actuarial science. It is
195	the further intent of the Legislature that such standards and
196	guidelines must be used by the State Board of Administration in
197	developing reimbursement premium rates for the Florida Hurricane
198	Catastrophe Fund, and, subject to paragraph (3)(c), may be used
199	by insurers in rate filings under s. 627.062 unless the way in
200	which such standards and guidelines were applied by the insurer
201	was erroneous, as shown by a preponderance of the evidence.
202	(3)  ADOPTION AND EFFECT OF STANDARDS AND GUIDELINES.--
203	(c)  With respect to a rate filing under s. 627.062, an
204	insurer may employ actuarial methods, principles, standards,
205	models, or output ranges found by the commission to be accurate
206	or reliable to determine hurricane loss factors for use in a
207	rate filing under s. 627.062. Such, which findings and factors
208	are admissible and relevant in consideration of a rate filing by
209	the office or in any arbitration or administrative or judicial
210	review only if the office and the consumer advocate appointed
211	pursuant to s. 627.0613 have access to all of the assumptions
212	and factors that were used in developing the actuarial methods,
213	principles, standards, models, or output ranges, and are not
214	precluded from disclosing such information in a rate proceeding.
215	Section 5.  Subsection (7) of section 627.0629, Florida
216	Statutes, is amended to read:
217	627.0629  Residential property insurance; rate filings.--
218	(7)  Any rate filing that is based in whole or part on data
219	from a computer model may not exceed 15 25 percent unless there
220	is a public hearing.
221	Section 6.  Section 627.06281, Florida Statutes, is created
222	to read:
223	627.06281  Public hurricane loss projection model;
224	reporting of data by insurers.--Within 30 days after a written
225	request for loss data and associated exposure data by the office
226	or a type I center within the State University System
227	established to study mitigation, residential property insurers
228	and licensed rating and advisory organizations that compile
229	residential property insurance loss data shall provide loss data
230	and associated exposure data for residential property insurance
231	policies to the office or to a type I center within the State
232	University System established to study mitigation, as directed
233	by the office, for the purposes of developing, maintaining, and
234	updating a public model for hurricane loss projections. The loss
235	data and associated exposure data provided shall be in writing.
236	Section 7.  Paragraphs (a), (c), and (d) of subsection (6)
237	of section 627.351, Florida Statutes, are amended to read:
238	627.351  Insurance risk apportionment plans.--
239	(6)  CITIZENS PROPERTY INSURANCE CORPORATION.--
240	(a)1.  The Legislature finds that actual and threatened
241	catastrophic losses to property in this state from hurricanes
242	have caused insurers to be unwilling or unable to provide
243	property insurance coverage to the extent sought and needed. It
244	is in the public interest and a public purpose to assist in
245	assuring that property in the state is insured so as to
246	facilitate the remediation, reconstruction, and replacement of
247	damaged or destroyed property in order to reduce or avoid the
248	negative effects otherwise resulting to the public health,
249	safety, and welfare; to the economy of the state; and to the
250	revenues of the state and local governments needed to provide
251	for the public welfare. It is necessary, therefore, to provide
252	property insurance to applicants who are in good faith entitled
253	to procure insurance through the voluntary market but are unable
254	to do so. The Legislature intends by this subsection that
255	property insurance be provided and that it continues, as long as
256	necessary, through an entity organized to achieve efficiencies
257	and economies, while providing service to policyholders,
258	applicants, and agents that is no less than the quality
259	generally provided in the voluntary market, all toward the
260	achievement of the foregoing public purposes. Because it is
261	essential for the corporation to have the maximum financial
262	resources to pay claims following a catastrophic hurricane, it
263	is the intent of the Legislature that the income of the
264	corporation be exempt from federal income taxation and that
265	interest on the debt obligations issued by the corporation be
266	exempt from federal income taxation.
267	2.  The Residential Property and Casualty Joint
268	Underwriting Association originally created by this statute
269	shall be known, as of July 1, 2002, as the Citizens Property
270	Insurance Corporation. The corporation shall provide insurance
271	for residential and commercial property, for applicants who are
272	in good faith entitled, but are unable, to procure insurance
273	through the voluntary market. The corporation shall operate
274	pursuant to a plan of operation approved by order of the office.
275	The plan is subject to continuous review by the office. The
276	office may, by order, withdraw approval of all or part of a plan
277	if the office determines that conditions have changed since
278	approval was granted and that the purposes of the plan require
279	changes in the plan. For the purposes of this subsection,
280	residential coverage includes both personal lines residential
281	coverage, which consists of the type of coverage provided by
282	homeowner's, mobile home owner's, dwelling, tenant's,
283	condominium unit owner's, and similar policies, and commercial
284	lines residential coverage, which consists of the type of
285	coverage provided by condominium association, apartment
286	building, and similar policies.
287	3.  It is the intent of the Legislature that policyholders,
288	applicants, and agents of the corporation receive service and
289	treatment of the highest possible level but never less than that
290	generally provided in the voluntary market. It also is intended
291	that the corporation be held to service standards no less than
292	those applied to insurers in the voluntary market by the office
293	with respect to responsiveness, timeliness, customer courtesy,
294	and overall dealings with policyholders, applicants, or agents
295	of the corporation.
296	(c)  The plan of operation of the corporation:
297	1.  Must provide for adoption of residential property and
298	casualty insurance policy forms and commercial residential and
299	nonresidential property insurance forms, which forms must be
300	approved by the office prior to use. The corporation shall adopt
301	the following policy forms:
302	a.  Standard personal lines policy forms that are
303	comprehensive multiperil policies providing full coverage of a
304	residential property equivalent to the coverage provided in the
305	private insurance market under an HO-3, HO-4, or HO-6 policy.
306	b.  Basic personal lines policy forms that are policies
307	similar to an HO-8 policy or a dwelling fire policy that provide
308	coverage meeting the requirements of the secondary mortgage
309	market, but which coverage is more limited than the coverage
310	under a standard policy.
311	c.  Commercial lines residential policy forms that are
312	generally similar to the basic perils of full coverage
313	obtainable for commercial residential structures in the admitted
314	voluntary market.
315	d.  Personal lines and commercial lines residential
316	property insurance forms that cover the peril of wind only. The
317	forms are applicable only to residential properties located in
318	areas eligible for coverage under the high-risk account referred
319	to in sub-subparagraph (b)2.a.
320	e.  Commercial lines nonresidential property insurance
321	forms that cover the peril of wind only. The forms are
322	applicable only to nonresidential properties located in areas
323	eligible for coverage under the high-risk account referred to in
324	sub-subparagraph (b)2.a.
325	2.a.  Must provide that the corporation adopt a program in
326	which the corporation and authorized insurers enter into quota
327	share primary insurance agreements for hurricane coverage, as
328	defined in s. 627.4025(2)(a), for eligible risks, and adopt
329	property insurance forms for eligible risks which cover the
330	peril of wind only. As used in this subsection, the term:
331	(I)  "Quota share primary insurance" means an arrangement
332	in which the primary hurricane coverage of an eligible risk is
333	provided in specified percentages by the corporation and an
334	authorized insurer. The corporation and authorized insurer are
335	each solely responsible for a specified percentage of hurricane
336	coverage of an eligible risk as set forth in a quota share
337	primary insurance agreement between the corporation and an
338	authorized insurer and the insurance contract. The
339	responsibility of the corporation or authorized insurer to pay
340	its specified percentage of hurricane losses of an eligible
341	risk, as set forth in the quota share primary insurance
342	agreement, may not be altered by the inability of the other
343	party to the agreement to pay its specified percentage of
344	hurricane losses. Eligible risks that are provided hurricane
345	coverage through a quota share primary insurance arrangement
346	must be provided policy forms that set forth the obligations of
347	the corporation and authorized insurer under the arrangement,
348	clearly specify the percentages of quota share primary insurance
349	provided by the corporation and authorized insurer, and
350	conspicuously and clearly state that neither the authorized
351	insurer nor the corporation may be held responsible beyond its
352	specified percentage of coverage of hurricane losses.
353	(II)  "Eligible risks" means personal lines residential and
354	commercial lines residential risks that meet the underwriting
355	criteria of the corporation and are located in areas that were
356	eligible for coverage by the Florida Windstorm Underwriting
357	Association on January 1, 2002.
358	b.  The corporation may enter into quota share primary
359	insurance agreements with authorized insurers at corporation
360	coverage levels of 90 percent and 50 percent.
361	c.  If the corporation determines that additional coverage
362	levels are necessary to maximize participation in quota share
363	primary insurance agreements by authorized insurers, the
364	corporation may establish additional coverage levels. However,
365	the corporation's quota share primary insurance coverage level
366	may not exceed 90 percent.
367	d.  Any quota share primary insurance agreement entered
368	into between an authorized insurer and the corporation must
369	provide for a uniform specified percentage of coverage of
370	hurricane losses, by county or territory as set forth by the
371	corporation board, for all eligible risks of the authorized
372	insurer covered under the quota share primary insurance
373	agreement.
374	e.  Any quota share primary insurance agreement entered
375	into between an authorized insurer and the corporation is
376	subject to review and approval by the office. However, such
377	agreement shall be authorized only as to insurance contracts
378	entered into between an authorized insurer and an insured who is
379	already insured by the corporation for wind coverage.
380	f.  For all eligible risks covered under quota share
381	primary insurance agreements, the exposure and coverage levels
382	for both the corporation and authorized insurers shall be
383	reported by the corporation to the Florida Hurricane Catastrophe
384	Fund. For all policies of eligible risks covered under quota
385	share primary insurance agreements, the corporation and the
386	authorized insurer shall maintain complete and accurate records
387	for the purpose of exposure and loss reimbursement audits as
388	required by Florida Hurricane Catastrophe Fund rules. The
389	corporation and the authorized insurer shall each maintain
390	duplicate copies of policy declaration pages and supporting
391	claims documents.
392	g.  The corporation board shall establish in its plan of
393	operation standards for quota share agreements which ensure that
394	there is no discriminatory application among insurers as to the
395	terms of quota share agreements, pricing of quota share
396	agreements, incentive provisions if any, and consideration paid
397	for servicing policies or adjusting claims.
398	h.  The quota share primary insurance agreement between the
399	corporation and an authorized insurer must set forth the
400	specific terms under which coverage is provided, including, but
401	not limited to, the sale and servicing of policies issued under
402	the agreement by the insurance agent of the authorized insurer
403	producing the business, the reporting of information concerning
404	eligible risks, the payment of premium to the corporation, and
405	arrangements for the adjustment and payment of hurricane claims
406	incurred on eligible risks by the claims adjuster and personnel
407	of the authorized insurer. Entering into a quota sharing
408	insurance agreement between the corporation and an authorized
409	insurer shall be voluntary and at the discretion of the
410	authorized insurer.
411	3.  May provide that the corporation may employ or
412	otherwise contract with individuals or other entities to provide
413	administrative or professional services that may be appropriate
414	to effectuate the plan. The corporation shall have the power to
415	borrow funds, by issuing bonds or by incurring other
416	indebtedness, and shall have other powers reasonably necessary
417	to effectuate the requirements of this subsection, including
418	without limitation, the power to issue bonds and incur other
419	indebtedness in order to refinance outstanding bonds or other
420	indebtedness. The corporation may, but is not required to, seek
421	judicial validation of its bonds or other indebtedness under
422	chapter 75. The corporation may issue bonds or incur other
423	indebtedness, or have bonds issued on its behalf by a unit of
424	local government pursuant to subparagraph (g)2., in the absence
425	of a hurricane or other weather-related event, upon a
426	determination by the corporation, subject to approval by the
427	office, that such action would enable it to efficiently meet the
428	financial obligations of the corporation and that such
429	financings are reasonably necessary to effectuate the
430	requirements of this subsection. The corporation is authorized
431	to take all actions needed to facilitate tax-free status for any
432	such bonds or indebtedness, including formation of trusts or
433	other affiliated entities. The corporation shall have the
434	authority to pledge assessments, projected recoveries from the
435	Florida Hurricane Catastrophe Fund, other reinsurance
436	recoverables, market equalization and other surcharges, and
437	other funds available to the corporation as security for bonds
438	or other indebtedness. In recognition of s. 10, Art. I of the
439	State Constitution, prohibiting the impairment of obligations of
440	contracts, it is the intent of the Legislature that no action be
441	taken whose purpose is to impair any bond indenture or financing
442	agreement or any revenue source committed by contract to such
443	bond or other indebtedness.
444	4.a.  Must require that the corporation operate subject to
445	the supervision and approval of a board of governors consisting
446	of 8 7 individuals who are residents of this state, from
447	different geographical areas of this state, appointed by the
448	Chief Financial Officer. The Governor, the Chief Financial
449	Officer, the President of the Senate, and the Speaker of the
450	House of Representatives shall each appoint two members of the
451	board, effective August 1, 2005. At least one of the two members
452	appointed by each appointing officer must have demonstrated
453	expertise in insurance. The Chief Financial Officer shall
454	designate one of the appointees as chair. All board members
455	serve at the pleasure of the appointing officer Chief Financial
456	Officer. All board members, including the chair, must be
457	appointed to serve for 3-year terms beginning annually on a date
458	designated by the plan. Any board vacancy shall be filled for
459	the unexpired term by the appointing officer Chief Financial
460	Officer. The Chief Financial Officer shall appoint a technical
461	advisory group to provide information and advice to the board of
462	governors in connection with the board's duties under this
463	subsection. The executive director and senior managers of the
464	corporation shall be engaged by the board, as recommended by the
465	Chief Financial Officer and serve at the pleasure of the board
466	Chief Financial Officer. The executive director is responsible
467	for employing other staff as the corporation may require,
468	subject to review and concurrence by the board and office of the
469	Chief Financial Officer.
470	b.  The board shall create a Market Accountability Advisory
471	Committee to assist the corporation in developing awareness of
472	its rates and its customer and agent service levels in
473	relationship to the voluntary market insurers writing similar
474	coverage. The members of the advisory committee shall consist of
475	the following 11 persons, one of whom must be elected chair by
476	the members of the committee: four representatives, one
477	appointed by the Florida Association of Insurance Agents, one by
478	the Florida Association of Insurance and Financial Advisors, one
479	by the Professional Insurance Agents of Florida, and one by the
480	Latin American Association of Insurance Agencies; three
481	representatives appointed by the insurers with the three highest
482	voluntary market share of residential property insurance
483	business in the state; one representative from the Office of
484	Insurance Regulation; one consumer appointed by the board who is
485	insured by the corporation at the time of appointment to the
486	committee; one representative appointed by the Florida
487	Association of Realtors; and one representative appointed by the
488	Florida Bankers Association. All members must serve for 3-year
489	terms and may serve for consecutive terms. The committee shall
490	report to the corporation at each board meeting on insurance
491	market issues which may include rates and rate competition with
492	the voluntary market; service, including policy issuance, claims
493	processing, and general responsiveness to policyholders,
494	applicants, and agents; and matters relating to depopulation.
495	5.  Must provide a procedure for determining the
496	eligibility of a risk for coverage, as follows:
497	a.  Subject to the provisions of s. 627.3517, with respect
498	to personal lines residential risks, if the risk is offered
499	coverage from an authorized insurer at the insurer's approved
500	rate under either a standard policy including wind coverage or,
501	if consistent with the insurer's underwriting rules as filed
502	with the office, a basic policy including wind coverage, the
503	risk is not eligible for any policy issued by the corporation.
504	If the risk is not able to obtain any such offer, the risk is
505	eligible for either a standard policy including wind coverage or
506	a basic policy including wind coverage issued by the
507	corporation; however, if the risk could not be insured under a
508	standard policy including wind coverage regardless of market
509	conditions, the risk shall be eligible for a basic policy
510	including wind coverage unless rejected under subparagraph 8.
511	The corporation shall determine the type of policy to be
512	provided on the basis of objective standards specified in the
513	underwriting manual and based on generally accepted underwriting
514	practices.
515	(I)  If the risk accepts an offer of coverage through the
516	market assistance plan or an offer of coverage through a
517	mechanism established by the corporation before a policy is
518	issued to the risk by the corporation or during the first 30
519	days of coverage by the corporation, and the producing agent who
520	submitted the application to the plan or to the corporation is
521	not currently appointed by the insurer, the insurer shall:
522	(A)  Pay to the producing agent of record of the policy,
523	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 corporation; or
527	(B)  Offer to allow the producing agent of record of the
528	policy to continue servicing the policy for a period of not less
529	than 1 year and offer to pay the agent the greater of the
530	insurer's or the corporation's usual and customary commission
531	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-sub-subparagraph (A).
536	(II)  When the corporation enters into a contractual
537	agreement for a take-out plan, the producing agent of record of
538	the corporation policy is entitled to retain any unearned
539	commission on the policy, and the insurer shall:
540	(A)  Pay to the producing agent of record of the
541	corporation policy, for the first year, an amount that is the
542	greater of the insurer's usual and customary commission for the
543	type of policy written or a fee equal to the usual and customary
544	commission of the corporation; or
545	(B)  Offer to allow the producing agent of record of the
546	corporation policy to continue servicing the policy for a period
547	of not less than 1 year and offer to pay the agent the greater
548	of the insurer's or the corporation's usual and customary
549	commission for the type of policy written.
550
551	If the producing agent is unwilling or unable to accept
552	appointment, the new insurer shall pay the agent in accordance
553	with sub-sub-sub-subparagraph (A).
554	b.  With respect to commercial lines residential risks, if
555	the risk is offered coverage under a policy including wind
556	coverage from an authorized insurer at its approved rate, the
557	risk is not eligible for any policy issued by the corporation.
558	If the risk is not able to obtain any such offer, the risk is
559	eligible for a policy including wind coverage issued by the
560	corporation.
561	(I)  If the risk accepts an offer of coverage through the
562	market assistance plan or an offer of coverage through a
563	mechanism established by the corporation before a policy is
564	issued to the risk by the corporation or during the first 30
565	days of coverage by the corporation, and the producing agent who
566	submitted the application to the plan or the corporation is not
567	currently appointed by the insurer, the insurer shall:
568	(A)  Pay to the producing agent of record of the policy,
569	for the first year, an amount that is the greater of the
570	insurer's usual and customary commission for the type of policy
571	written or a fee equal to the usual and customary commission of
572	the corporation; or
573	(B)  Offer to allow the producing agent of record of the
574	policy to continue servicing the policy for a period of not less
575	than 1 year and offer to pay the agent the greater of the
576	insurer's or the corporation's usual and customary commission
577	for the type of policy written.
578
579	If the producing agent is unwilling or unable to accept
580	appointment, the new insurer shall pay the agent in accordance
581	with sub-sub-sub-subparagraph (A).
582	(II)  When the corporation enters into a contractual
583	agreement for a take-out plan, the producing agent of record of
584	the corporation policy is entitled to retain any unearned
585	commission on the policy, and the insurer shall:
586	(A)  Pay to the producing agent of record of the
587	corporation policy, for the first year, an amount that is the
588	greater of the insurer's usual and customary commission for the
589	type of policy written or a fee equal to the usual and customary
590	commission of the corporation; or
591	(B)  Offer to allow the producing agent of record of the
592	corporation policy to continue servicing the policy for a period
593	of not less than 1 year and offer to pay the agent the greater
594	of the insurer's or the corporation's usual and customary
595	commission for the type of policy written.
596
597	If the producing agent is unwilling or unable to accept
598	appointment, the new insurer shall pay the agent in accordance
599	with sub-sub-sub-subparagraph (A).
600	6.  Must include rules for classifications of risks and
601	rates therefor.
602	7.  Must provide that if premium and investment income for
603	an account attributable to a particular calendar year are in
604	excess of projected losses and expenses for the account
605	attributable to that year, such excess shall be held in surplus
606	in the account. Such surplus shall be available to defray
607	deficits in that account as to future years and shall be used
608	for that purpose prior to assessing assessable insurers and
609	assessable insureds as to any calendar year.
610	8.  Must provide objective criteria and procedures to be
611	uniformly applied for all applicants in determining whether an
612	individual risk is so hazardous as to be uninsurable. In making
613	this determination and in establishing the criteria and
614	procedures, the following shall be considered:
615	a.  Whether the likelihood of a loss for the individual
616	risk is substantially higher than for other risks of the same
617	class; and
618	b.  Whether the uncertainty associated with the individual
619	risk is such that an appropriate premium cannot be determined.
620
621	The acceptance or rejection of a risk by the corporation shall
622	be construed as the private placement of insurance, and the
623	provisions of chapter 120 shall not apply.
624	9.  Must provide that the corporation shall make its best
625	efforts to procure catastrophe reinsurance at reasonable rates,
626	to cover its projected 100-year probable maximum loss as
627	determined by the board of governors.
628	10.  Must provide that in the event of regular deficit
629	assessments under sub-subparagraph (b)3.a. or sub-subparagraph
630	(b)3.b., in the personal lines account, the commercial lines
631	residential account, or the high-risk account, the corporation
632	shall levy upon corporation policyholders in its next rate
633	filing, or by a separate rate filing solely for this purpose, a
634	market equalization surcharge arising from a regular assessment
635	in such account in a percentage equal to the total amount of
636	such regular assessments divided by the aggregate statewide
637	direct written premium for subject lines of business for the
638	prior calendar year. Market equalization surcharges under this
639	subparagraph are not considered premium and are not subject to
640	commissions, fees, or premium taxes; however, failure to pay a
641	market equalization surcharge shall be treated as failure to pay
642	premium.
643	11.  The policies issued by the corporation must provide
644	that, if the corporation or the market assistance plan obtains
645	an offer from an authorized insurer to cover the risk at its
646	approved rates, the risk is no longer eligible for renewal
647	through the corporation.
648	12.  Corporation policies and applications must include a
649	notice that the corporation policy could, under this section, be
650	replaced with a policy issued by an authorized insurer that does
651	not provide coverage identical to the coverage provided by the
652	corporation. The notice shall also specify that acceptance of
653	corporation coverage creates a conclusive presumption that the
654	applicant or policyholder is aware of this potential.
655	13.  May establish, subject to approval by the office,
656	different eligibility requirements and operational procedures
657	for any line or type of coverage for any specified county or
658	area if the board determines that such changes to the
659	eligibility requirements and operational procedures are
660	justified due to the voluntary market being sufficiently stable
661	and competitive in such area or for such line or type of
662	coverage and that consumers who, in good faith, are unable to
663	obtain insurance through the voluntary market through ordinary
664	methods would continue to have access to coverage from the
665	corporation. When coverage is sought in connection with a real
666	property transfer, such requirements and procedures shall not
667	provide for an effective date of coverage later than the date of
668	the closing of the transfer as established by the transferor,
669	the transferee, and, if applicable, the lender.
670	14.  Must provide that, with respect to the high-risk
671	account, any assessable insurer with a surplus as to
672	policyholders of $25 million or less writing 25 percent or more
673	of its total countrywide property insurance premiums in this
674	state may petition the office, within the first 90 days of each
675	calendar year, to qualify as a limited apportionment company. In
676	no event shall a limited apportionment company be required to
677	participate in the portion of any assessment, within the high-
678	risk account, pursuant to sub-subparagraph (b)3.a. or sub-
679	subparagraph (b)3.b. in the aggregate which exceeds $50 million
680	after payment of available high-risk account funds in any
681	calendar year. However, a limited apportionment company shall
682	collect from its policyholders any emergency assessment imposed
683	under sub-subparagraph (b)3.d. The plan shall provide that, if
684	the office determines that any regular assessment will result in
685	an impairment of the surplus of a limited apportionment company,
686	the office may direct that all or part of such assessment be
687	deferred as provided in subparagraph (g)4. However, there shall
688	be no limitation or deferment of an emergency assessment to be
689	collected from policyholders under sub-subparagraph (b)3.d.
690	15.  Must provide that the corporation appoint as its
691	licensed agents only those agents who also hold an appointment
692	as defined in s. 626.015(3) with an insurer who at the time of
693	the agent's initial appointment by the corporation is authorized
694	to write and is actually writing personal lines residential
695	property coverage, commercial residential property coverage, or
696	commercial nonresidential property coverage within the state.
697	(d)1.  It is the intent of the Legislature that the rates
698	for coverage provided by the corporation be actuarially sound
699	and not competitive with approved rates charged in the admitted
700	voluntary market, so that the corporation functions as a
701	residual market mechanism to provide insurance only when the
702	insurance cannot be procured in the voluntary market. Rates
703	shall include an appropriate catastrophe loading factor that
704	reflects the actual catastrophic exposure of the corporation.
705	2.  For each county, the average rates of the corporation
706	for each line of business for personal lines residential
707	policies excluding rates for wind-only policies shall be no
708	lower than the average rates charged by the insurer that had the
709	highest average rate in that county among the 20 insurers with
710	the greatest total direct written premium in the state for that
711	line of business in the preceding year, except that with respect
712	to mobile home coverages, the average rates of the corporation
713	shall be no lower than the average rates charged by the insurer
714	that had the highest average rate in that county among the 5
715	insurers with the greatest total written premium for mobile home
716	owner's policies in the state in the preceding year.
717	3.  Rates for personal lines residential wind-only policies
718	must be actuarially sound and not competitive with approved
719	rates charged by authorized insurers. However, for personal
720	lines residential wind-only policies issued or renewed between
721	July 1, 2002, and June 30, 2003, the maximum premium increase
722	must be no greater than 10 percent of the Florida Windstorm
723	Underwriting Association premium for that policy in effect on
724	June 30, 2002, as adjusted for coverage changes and seasonal
725	occupancy surcharges. For personal lines residential wind-only
726	policies issued or renewed between July 1, 2003, and June 30,
727	2004, the corporation shall use its existing filed and approved
728	wind-only rating and classification plans, provided, however,
729	that the maximum premium increase must be no greater than 20
730	percent of the premium for that policy in effect on June 30,
731	2003, as adjusted for coverage changes and seasonal occupancy
732	surcharges. Corporation rate manuals shall include a rate
733	surcharge for seasonal occupancy. To ensure that personal lines
734	residential wind-only rates effective on or after July 1, 2004,
735	are not competitive with approved rates charged by authorized
736	insurers, the corporation, in conjunction with the office, shall
737	develop a wind-only ratemaking methodology, which methodology
738	shall be contained in each a rate filing made by the corporation
739	with the office by January 1, 2004. If the office thereafter
740	determines that the wind-only rates or rating factors filed by
741	the corporation fail to comply with the wind-only ratemaking
742	methodology provided for in this subsection, it shall so notify
743	the corporation and require the corporation to amend its rates
744	or rating factors to come into compliance within 90 days of
745	notice from the office. The office shall report to the Speaker
746	of the House of Representatives and the President of the Senate
747	on the provisions of the wind-only ratemaking methodology by
748	January 31, 2004.
749	4.  For the purposes of establishing a pilot program to
750	evaluate issues relating to the availability and affordability
751	of insurance in an area where historically there has been little
752	market competition, the provisions of subparagraph 2. do not
753	apply to coverage provided by the corporation in Monroe County
754	if the office determines that a reasonable degree of competition
755	does not exist for personal lines residential policies. The
756	provisions of subparagraph 3. do not apply to coverage provided
757	by the corporation in Monroe County if the office determines
758	that a reasonable degree of competition does not exist for
759	personal lines residential policies in the area of that county
760	which is eligible for wind-only coverage. In this county, the
761	rates for personal lines residential coverage shall be
762	actuarially sound and not excessive, inadequate, or unfairly
763	discriminatory and are subject to the other provisions of the
764	paragraph and s. 627.062. The commission shall adopt rules
765	establishing the criteria for determining whether a reasonable
766	degree of competition exists for personal lines residential
767	policies in Monroe County. By March 1, 2006, the office shall
768	submit a report to the Legislature providing an evaluation of
769	the implementation of the pilot program affecting Monroe County.
770	5.4.  Rates for commercial lines coverage shall not be
771	subject to the requirements of subparagraph 2., but shall be
772	subject to all other requirements of this paragraph and s.
773	627.062.
774	6.5.  Nothing in this paragraph shall require or allow the
775	corporation to adopt a rate that is inadequate under s. 627.062.
776	7.6.  The corporation shall certify to the office at least
777	twice annually that its personal lines rates comply with the
778	requirements of subparagraphs 1. and 2. If any adjustment in the
779	rates or rating factors of the corporation is necessary to
780	ensure such compliance, the corporation shall make and implement
781	such adjustments and file its revised rates and rating factors
782	with the office. If the office thereafter determines that the
783	revised rates and rating factors fail to comply with the
784	provisions of subparagraphs 1. and 2., it shall notify the
785	corporation and require the corporation to amend its rates or
786	rating factors in conjunction with its next rate filing. The
787	office must notify the corporation by electronic means of any
788	rate filing it approves for any insurer among the insurers
789	referred to in subparagraph 2.
790	8.7.  In addition to the rates otherwise determined
791	pursuant to this paragraph, the corporation shall impose and
792	collect an amount equal to the premium tax provided for in s.
793	624.509 to augment the financial resources of the corporation.
794	9.8.a.  To assist the corporation in developing additional
795	ratemaking methods to assure compliance with subparagraphs 1.
796	and 4., the corporation shall appoint a rate methodology panel
797	consisting of one person recommended by the Florida Association
798	of Insurance Agents, one person recommended by the Professional
799	Insurance Agents of Florida, one person recommended by the
800	Florida Association of Insurance and Financial Advisors, one
801	person recommended by the insurer with the highest voluntary
802	market share of residential property insurance business in the
803	state, one person recommended by the insurer with the second-
804	highest voluntary market share of residential property insurance
805	business in the state, one person recommended by an insurer
806	writing commercial residential property insurance in this state,
807	one person recommended by the Office of Insurance Regulation,
808	and one board member designated by the board chairman, who shall
809	serve as chairman of the panel.
810	b.  By January 1, 2004, the rate methodology panel shall
811	provide a report to the corporation of its findings and
812	recommendations for the use of additional ratemaking methods and
813	procedures, including the use of a rate equalization surcharge
814	in an amount sufficient to assure that the total cost of
815	coverage for policyholders or applicants to the corporation is
816	sufficient to comply with subparagraph 1.
817	c.  Within 30 days after such report, the corporation shall
818	present to the President of the Senate, the Speaker of the House
819	of Representatives, the minority party leaders of each house of
820	the Legislature, and the chairs of the standing committees of
821	each house of the Legislature having jurisdiction of insurance
822	issues, a plan for implementing the additional ratemaking
823	methods and an outline of any legislation needed to facilitate
824	use of the new methods.
825	d.  The plan must include a provision that producer
826	commissions paid by the corporation shall not be calculated in
827	such a manner as to include any rate equalization surcharge.
828	However, without regard to the plan to be developed or its
829	implementation, producer commissions paid by the corporation for
830	each account, other than the quota share primary program, shall
831	remain fixed as to percentage, effective rate, calculation, and
832	payment method until January 1, 2004.
833	10.9.  By January 1, 2004, the corporation shall develop a
834	notice to policyholders or applicants that the rates of Citizens
835	Property Insurance Corporation are intended to be higher than
836	the rates of any admitted carrier and providing other
837	information the corporation deems necessary to assist consumers
838	in finding other voluntary admitted insurers willing to insure
839	their property.
840	Section 8.  Section 627.40951, Florida Statutes, is created
841	to read:
842	627.40951  Standard personal lines residential insurance
843	policy.--
844	(1)  The Legislature finds that many consumers who filed
845	property loss claims as a result of the hurricanes that struck
846	this state in 2004 were inadequately insured due to the
847	difficulty consumers encounter in trying to understand the
848	complex nature of property insurance policies. The purpose and
849	intent of this section is to have property and casualty insurers
850	offer standard personal lines residential property insurance
851	policies and standard checklists of policy contents, in
852	accordance with s. 627.4143, to consumers and to ensure that
853	these policies and checklists are written in a simple format
854	with easily readable language that will enable most consumers to
855	understand the principal benefits and coverage provided in the
856	policy; the principal exclusions and limitations or reductions
857	contained in the policy, including, but not limited to,
858	deductibles, coinsurance, and any other limitations or
859	reductions; and any additional coverage provided through any
860	rider or endorsement that accompanies the policy and renewal or
861	cancellation provisions.
862	(2)  The Chief Financial Officer shall appoint an advisory
863	committee composed of two representatives of insurers currently
864	selling personal lines residential property insurance coverage,
865	two representatives of property and casualty agents, two
866	representatives of consumers, two representatives of the
867	Commissioner of Insurance Regulation, and the Insurance Consumer
868	Advocate or her or his designee. The Chief Financial Officer or
869	her or his designee shall serve as chair of the committee. The
870	committee shall develop policy language for coverage that
871	represents general industry standards in the market for
872	comprehensive coverage under personal lines residential
873	insurance policies and shall develop a checklist to be used with
874	each type of personal lines residential property insurance
875	policy. The committee shall review policies and related forms
876	written by Insurance Services Office, Inc. The committee shall
877	file a report containing its recommendations to the President of
878	the Senate and the Speaker of the House of Representatives by
879	January 15, 2006. No insurer shall be required to offer the
880	standard policy unless required by further act of the
881	Legislature.
882	Section 9.  Subsection (1) of section 627.411, Florida
883	Statutes, is amended to read:
884	627.411  Grounds for disapproval.--
885	(1)  The office shall disapprove any form filed under s.
886	627.410, or withdraw any previous approval thereof, only if the
887	form:
888	(a)  Is in any respect in violation of, or does not comply
889	with, this code.
890	(b)  Contains or incorporates by reference, where such
891	incorporation is otherwise permissible, any inconsistent,
892	ambiguous, or misleading clauses, or exceptions and conditions
893	which deceptively affect the risk purported to be assumed in the
894	general coverage of the contract.
895	(c)  Has any title, heading, or other indication of its
896	provisions which is misleading.
897	(d)  Is printed or otherwise reproduced in such manner as
898	to render any material provision of the form substantially
899	illegible.
900	(e)  Is for residential property insurance and contains
901	provisions that are unfair or inequitable or encourage
902	misrepresentation.
903	(f)(e)  Is for health insurance, and:
904	1.  Provides benefits that are unreasonable in relation to
905	the premium charged.;
906	2.  Contains provisions that are unfair or inequitable or
907	contrary to the public policy of this state or that encourage
908	misrepresentation.;
909	3.  Contains provisions that apply rating practices that
910	result in unfair discrimination pursuant to s. 626.9541(1)(g)2.
911	(g)(f)  Excludes coverage for human immunodeficiency virus
912	infection or acquired immune deficiency syndrome or contains
913	limitations in the benefits payable, or in the terms or
914	conditions of such contract, for human immunodeficiency virus
915	infection or acquired immune deficiency syndrome which are
916	different than those which apply to any other sickness or
917	medical condition.
918	Section 10.  Paragraphs (d) and (e) are added to subsection
919	(2) of section 627.4133, Florida Statutes, to read:
920	627.4133  Notice of cancellation, nonrenewal, or renewal
921	premium.--
922	(2)  With respect to any personal lines or commercial
923	residential property insurance policy, including, but not
924	limited to, any homeowner's, mobile home owner's, farmowner's,
925	condominium association, condominium unit owner's, apartment
926	building, or other policy covering a residential structure or
927	its contents:
928	(d)1.  Upon a declaration of an emergency pursuant to s.
929	252.36 and the filing of an order by the Commissioner of
930	Insurance Regulation, an insurer may not cancel or nonrenew a
931	personal residential or commercial residential property
932	insurance policy covering a dwelling or residential property
933	located in this state which has been damaged as a result of a
934	hurricane or wind loss that is the subject of the declaration of
935	emergency for a period of 90 days after the dwelling or
936	residential property has been repaired. A structure is deemed to
937	be repaired when substantially completed and restored to the
938	extent that it is insurable by another authorized insurer that
939	is writing policies in this state.
940	2.  However, an insurer or agent may cancel or nonrenew
941	such a policy prior to the repair of the dwelling or residential
942	property:
943	a.  Upon 10 days' notice for nonpayment of premium; or
944	b.  Upon 45 days' notice:
945	(I)  For a material misstatement or fraud related to the
946	claim;
947	(II)  If the insurer determines that the insured has
948	unreasonably caused a delay in the repair of the dwelling; or
949	(III)  If the insurer has paid policy limits.
950	3.  If the insurer elects to nonrenew a policy covering a
951	property that has been damaged, the insurer shall provide at
952	least 90 days' notice to the insured that the insurer intends to
953	nonrenew the policy 90 days after the dwelling or residential
954	property has been repaired. Nothing in this paragraph shall
955	prevent the insurer from canceling or nonrenewing the policy 90
956	days after the repairs are complete for the same reasons the
957	insurer would otherwise have canceled or nonrenewed the policy
958	but for the limitations of subparagraph 1. The Financial
959	Services Commission may adopt rules, and the Commissioner of
960	Insurance Regulation may issue orders, necessary to implement
961	this paragraph.
962	4.  This paragraph shall also apply to personal residential
963	and commercial residential policies covering property that was
964	damaged as the result of Tropical Storm Bonnie, Hurricane
965	Charley, Hurricane Frances, Hurricane Ivan, or Hurricane Jeanne.
966	(e)  If any cancellation or nonrenewal of a policy subject
967	to this subsection is to take effect during the duration of a
968	hurricane as defined in s. 627.4025(2)(c), the effective date of
969	such cancellation or nonrenewal is extended until the end of the
970	duration of such hurricane. The insurer may collect premium at
971	the prior rates or the rates then in effect for the period of
972	time for which coverage is extended. This paragraph does not
973	apply to any property with respect to which replacement coverage
974	has been obtained and which is in effect for a claim occurring
975	during the duration of the hurricane.
976	Section 11.  Effective January 1, 2006, section 627.4143,
977	Florida Statutes, is amended to read:
978	627.4143  Outline of coverage.--
979	(1)  No private passenger automobile or basic homeowner's
980	policy shall be delivered or issued for delivery in this state
981	unless an appropriate outline of coverage has been delivered
982	prior to issuance of the policy or accompanies the policy when
983	issued.
984	(2)  The outline of coverage for a private passenger motor
985	vehicle insurance policy shall contain all of the following:
986	(a)  A brief description of the principal benefits and
987	coverage provided in the policy, broken down by each class or
988	type of coverage provided under the policy for which a premium
989	is charged, and itemization of the applicable premium.
990	(b)  A summary statement of the principal exclusions and
991	limitations or reductions contained in the policy by class or
992	type, including, but not limited to, deductibles, coinsurance,
993	and any other limitations or reductions.
994	(c)  A summary statement of any renewal or cancellation
995	provisions.
996	(d)  A description of the credit or surcharge plan that is
997	being applied.  The description may display numerical or
998	alphabetical codes on the declarations page or premium notice to
999	enable the insured to determine the reason or reasons why her or
1000	his policy is being surcharged or is receiving a credit.
1001	(e)  A list of any additional coverage provided through any
1002	rider or endorsement which accompanies the policy.  The list
1003	shall contain a descriptive reference to each additional
1004	coverage, rather than solely a reference to a form or code
1005	number.
1006	(f)  For a private passenger motor vehicle insurance
1007	policy, The extent of coverage provided to the insured in the
1008	event of collision damage to a rental vehicle rented by the
1009	insured. The proof-of-insurance card required by s. 316.646 must
1010	also specify whether rental car coverage is provided, and may
1011	refer to the outline of coverage as to the details or extent of
1012	coverage.
1013	(3)  A basic homeowners', mobile homeowners', dwelling, or
1014	condominium unit owners' policy may not be delivered or issued
1015	for delivery in this state unless a comprehensive checklist of
1016	coverage on a form adopted by the commission and an appropriate
1017	outline of coverage have been delivered prior to issuance of the
1018	policy or accompanies the policy when issued. The commission
1019	shall, by rule, adopt a form for the checklist for each type of
1020	policy to which this subsection applies. Each form shall
1021	indicate that it was adopted by the commission.
1022	(a)  The checklist must contain a list of the standard
1023	provisions and elements that may typically be included in these
1024	policies, whether or not they are included in the particular
1025	policy being issued, in a format that allows the insurer to
1026	place a check mark next to the provisions elements that are
1027	included so that the consumer can see both what is included and
1028	what is not included in the policy. As an alternative to
1029	checking the boxes on the checklist, an insurer may delete the
1030	check boxes from the form and replace them with text indicating
1031	whether the provision's elements are included or not. Limits of
1032	liability shall be listed for each item. The checklist must
1033	include, but is not limited to, the following:
1034	1.  Property coverage for the principal premises shown in
1035	the declarations.
1036	2.  Property coverage for other structures on the residence
1037	premises.
1038	3.  Whether the principal premises and other structures are
1039	insured against the following perils:
1040	a.  Fire.
1041	b.  Lightning.
1042	c.  Explosion.
1043	d.  Hurricane loss.
1044	e.  Nonhurricane wind loss.
1045	f.  Collapse.
1046	g.  Mold.
1047	h.  Sinkhole loss.
1048	i.  Vandalism.
1049	4.  Personal property coverage.
1050	5.  Whether personal property is insured against the
1051	following perils:
1052	a.  Fire.
1053	b.  Lightning.
1054	c.  Hurricane loss.
1055	d.  Nonhurricane wind loss.
1056	e.  Collapse.
1057	f.  Mold.
1058	g.  Sinkhole loss.
1059	h.  Theft.
1060	6.  The following additional coverages:
1061	a.  Debris removal.
1062	b.  Loss assessment.
1063	c.  Additional living expenses.
1064	7.  Personal liability coverage.
1065	8.  Medical payments coverage.
1066	9.  Discounts applied to the premium.
1067	10.  Deductibles for loss due to hurricane and loss to
1068	other perils.
1069	11.  Building ordinance or law coverage.
1070	12.  Replacement cost coverage.
1071	13.  Actual cash value coverage.
1072	(b)  The forms shall allow insurers to place other
1073	coverages on the checklists which may or may not be included in
1074	the insurer's policies.
1075	(c)  The outline of coverage must contain:
1076	1.  A brief description of the principal benefits and
1077	coverage provided in the policy, broken down by each class or
1078	type of coverage provided under the policy for which a premium
1079	is charged, and itemization of the applicable premium.
1080	2.  A summary statement of the principal exclusions and
1081	limitations or reductions contained in the policy by class or
1082	type, including, but not limited to, deductibles, coinsurance,
1083	and any other limitations or reductions.
1084	3.  A summary statement of any renewal or cancellation
1085	provisions.
1086	4.  A description of the credit or surcharge plan that is
1087	being applied. The description may display numerical or
1088	alphabetical codes on the declarations page or premium notice to
1089	enable the insured to determine the reason or reasons why her or
1090	his policy is being surcharged or is receiving a credit.
1091	5.  A summary of any additional coverage provided through
1092	any rider or endorsement that accompanies the policy.
1093	(4)(3)  The outline of coverage for a private passenger
1094	motor vehicle policy is required only on the initial policy
1095	issued by an insurer. The outline of coverage and the checklist
1096	for a basic homeowners', mobile homeowners', dwelling, or
1097	condominium unit owners' policy is required on the initial
1098	policy and each renewal thereof issued by an insurer.
1099	(5)(4)  An insurer must insert the following language on
1100	the outline of coverage:
1101
1102	"The following outline of coverage or checklist is for
1103	informational purposes only. Florida law prohibits this outline
1104	or checklist from changing any of the provisions of the
1105	insurance contract which is the subject of this outline.  Any
1106	endorsement regarding changes in types of coverage, exclusions,
1107	limitations, reductions, deductibles, coinsurance, renewal
1108	provisions, cancellation provisions, surcharges, or credits will
1109	be sent separately."
1110	(6)(5)  Neither this section nor the outline of coverage or
1111	checklist mandated by this section alters or modifies the terms
1112	of the insurance contract, creates a cause of action, or is
1113	admissible in any civil action.
1114	Section 12.  Effective October 1, 2005, subsections (3),
1115	(4), (8), and (9) of section 627.701, Florida Statutes, as
1116	amended by section 4 of chapter 2004-480, Laws of Florida, are
1117	amended to read:
1118	627.701  Liability of insureds; coinsurance; deductibles.--
1119	(3)(a)  A policy of residential property insurance shall
1120	include a deductible amount applicable to hurricane or wind
1121	losses no lower than $500 and no higher than 2 percent of the
1122	policy dwelling limits with respect to personal lines
1123	residential risks, and no higher than 3 percent of the policy
1124	limits with respect to commercial lines residential risks;
1125	however, if a risk was covered on August 24, 1992, under a
1126	policy having a higher deductible than the deductibles allowed
1127	by this paragraph, a policy covering such risk may include a
1128	deductible no higher than the deductible in effect on August 24,
1129	1992. Notwithstanding the other provisions of this paragraph, a
1130	personal lines residential policy covering a risk valued at
1131	$50,000 or less may include a deductible amount attributable to
1132	hurricane or wind losses no lower than $250, and a personal
1133	lines residential policy covering a risk valued at $100,000 or
1134	more may include a deductible amount attributable to hurricane
1135	or wind losses no higher than 10 5 percent of the policy limits
1136	unless subject to a higher deductible on August 24, 1992;
1137	however, no maximum deductible is required with respect to a
1138	personal lines residential policy covering a risk valued at more
1139	than $500,000.  An insurer may require a higher deductible,
1140	provided such deductible is the same as or similar to a
1141	deductible program lawfully in effect on June 14, 1995.  In
1142	addition to the deductible amounts authorized by this paragraph,
1143	an insurer may also offer policies with a copayment provision
1144	under which, after exhaustion of the deductible, the
1145	policyholder is responsible for 10 percent of the next $10,000
1146	of insured hurricane or wind losses.
1147	(b)1.  Except as otherwise provided in this paragraph,
1148	prior to issuing a personal lines residential property insurance
1149	policy on or after January 1, 2006 April 1, 1996, or prior to
1150	the first renewal of a residential property insurance policy on
1151	or after January 1, 2006 April 1, 1996, the insurer must offer
1152	alternative deductible amounts applicable to hurricane or wind
1153	losses equal to $500, and 2 percent, 5 percent, and 10 percent
1154	of the policy dwelling limits, unless the specific percentage 2
1155	percent deductible is less than $500. The written notice of the
1156	offer shall specify the hurricane or wind deductible to be
1157	applied in the event that the applicant or policyholder fails to
1158	affirmatively choose a hurricane deductible. The insurer must
1159	provide such policyholder with notice of the availability of the
1160	deductible amounts specified in this paragraph in a form
1161	approved by the office in conjunction with each renewal of the
1162	policy. The failure to provide such notice constitutes a
1163	violation of this code but does not affect the coverage provided
1164	under the policy.
1165	2.  This paragraph does not apply with respect to a
1166	deductible program lawfully in effect on June 14, 1995, or to
1167	any similar deductible program, if the deductible program
1168	requires a minimum deductible amount of no less than 2 percent
1169	of the policy limits.
1170	3.  With respect to a policy covering a risk with dwelling
1171	limits of at least $100,000, but less than $250,000, the insurer
1172	may, in lieu of offering a policy with a $500 hurricane or wind
1173	deductible as required by subparagraph 1., offer a policy that
1174	the insurer guarantees it will not nonrenew for reasons of
1175	reducing hurricane loss for one renewal period and that contains
1176	up to a 2 percent hurricane or wind deductible as required by
1177	subparagraph 1.
1178	4.  With respect to a policy covering a risk with dwelling
1179	limits of $250,000 or more, the insurer need not offer the $500
1180	hurricane or wind deductible as required by subparagraph 1., but
1181	must, except as otherwise provided in this subsection, offer the
1182	other 2 percent hurricane deductibles or wind deductible as
1183	required by subparagraph 1.
1184	(c)  In order to provide for the transition from wind
1185	deductibles to hurricane deductibles as required by this
1186	subsection, an insurer is required to provide wind deductibles
1187	meeting the requirements of this subsection until the effective
1188	date of the insurer's first rate filing made after January 1,
1189	1997, and is thereafter required to provide hurricane
1190	deductibles meeting the requirements of this subsection.
1191	(4)(a)  Any policy that contains a separate hurricane
1192	deductible must on its face include in boldfaced type no smaller
1193	than 18 points the following statement: "THIS POLICY CONTAINS A
1194	SEPARATE DEDUCTIBLE FOR HURRICANE LOSSES, WHICH MAY RESULT IN
1195	HIGH OUT-OF-POCKET EXPENSES TO YOU." A policy containing a
1196	coinsurance provision applicable to hurricane losses must on its
1197	face include in boldfaced type no smaller than 18 points the
1198	following statement: "THIS POLICY CONTAINS A CO-PAY PROVISION
1199	THAT MAY RESULT IN HIGH OUT-OF-POCKET EXPENSES TO YOU."
1200	(b)  Beginning October 1, 2005, for any personal lines
1201	residential property insurance policy containing a separate
1202	hurricane deductible, the insurer shall compute and prominently
1203	display the actual dollar value of the hurricane deductible on
1204	the declarations page of the policy at issuance and, for
1205	renewal, on the renewal declarations page of the policy or on
1206	the premium renewal notice.
1207	(c)  Beginning October 1, 2005, for any personal lines
1208	residential property insurance policy containing an inflation
1209	guard rider, the insurer shall compute and prominently display
1210	the actual dollar value of the hurricane deductible on the
1211	declarations page of the policy at issuance and, for renewal, on
1212	the renewal declarations page of the policy or on the premium
1213	renewal notice. In addition, beginning October 1, 2005, for any
1214	personal lines residential property insurance policy containing
1215	an inflation guard rider, the insurer shall notify the
1216	policyholder of the possibility that the hurricane deductible
1217	may be higher than indicated when loss occurs due to application
1218	of the inflation guard rider. Such notification shall be made on
1219	the declarations page of the policy at issuance and, for
1220	renewal, on the renewal declarations page of the policy or on
1221	the premium renewal notice.
1222	(8)(a)  The Legislature finds that property insurance
1223	coverage has become unaffordable for a significant number of
1224	mobile home owners, as evidenced by reports that up to 100,000
1225	mobile home owners have terminated their insurance coverage
1226	because they cannot afford to pay approved rates charged in the
1227	voluntary or residual markets. The Legislature further finds
1228	that additional flexibility in available coverages will enable
1229	mobile home owners to obtain affordable insurance and increase
1230	capacity.
1231	(b)  Notwithstanding the provisions of subsection (3), with
1232	respect to mobile home policies:
1233	1.  The deductible for hurricane coverage may not exceed 10
1234	percent of the property value if the property is not subject to
1235	any liens and may not exceed 5 percent of the property value if
1236	the property is subject to any liens.
1237	2.  The insurer need not make the offers required by
1238	paragraph (3)(b).
1239	(8)(9)  Notwithstanding the other provisions of this
1240	section or of other law, but only as to hurricane coverage as
1241	defined in s. 627.4025 for commercial lines residential
1242	coverages, an insurer may offer a deductible in an amount not
1243	exceeding 5 percent of the insured value with respect to a
1244	condominium association or cooperative association policy, or in
1245	an amount not exceeding 10 percent of the insured value with
1246	respect to any other commercial lines residential policy, if, at
1247	the time of such offer and at each renewal, the insurer also
1248	offers to the policyholder a deductible in the amount of 3
1249	percent of the insured value. Nothing in this subsection
1250	prohibits any deductible otherwise authorized by this section.
1251	All forms by which the offers authorized in this subsection are
1252	made or required to be made shall be on forms that are adopted
1253	or approved by the commission or office.
1254	Section 13.  Subsection (5) of section 627.701, Florida
1255	Statutes, as amended by section 4 of chapter 2004-480, Laws of
1256	Florida, is amended to read:
1257	627.701  Liability of Insureds; coinsurance; deductibles.--
1258	(5)(a)  The hurricane deductible of any personal lines
1259	residential property insurance policy issued or renewed on or
1260	after May 1, 2005, shall be applied as follows:
1261	1.(a)  The hurricane deductible shall apply on an annual
1262	basis to all covered hurricane losses that occur during the
1263	calendar year for losses that are covered under one or more
1264	policies issued by the same insurer or an insurer in the same
1265	insurer group.
1266	2.(b)  If a hurricane deductible applies separately to each
1267	of one or more structures insured under a single policy, the
1268	requirements of this paragraph subsection apply with respect to
1269	the deductible for each structure.
1270	3.(c)  If there was a hurricane loss for a prior hurricane
1271	or hurricanes during the calendar year, the insurer may apply a
1272	deductible to a subsequent hurricane which that is the greater
1273	of the remaining amount of the hurricane deductible or the
1274	amount of the deductible that applies to perils other than a
1275	hurricane. Insurers may require policyholders to report
1276	hurricane losses that are below the hurricane deductible or to
1277	maintain receipts or other records of such hurricane losses in
1278	order to apply such losses to subsequent hurricane claims.
1279	4.(d)  If there are hurricane losses in a calendar year on
1280	more than one policy issued by the same insurer or an insurer in
1281	the same insurer group, the hurricane deductible shall be the
1282	highest amount stated in any one of the policies. If a
1283	policyholder who had a hurricane loss under the prior policy is
1284	provided or offered a lower hurricane deductible under the new
1285	or renewal policy, the insurer must notify the policyholder, in
1286	writing, at the time the lower hurricane deductible is provided
1287	or offered, that the lower hurricane deductible will not apply
1288	until January 1 of the following calendar year.
1289	(b)  For commercial residential property insurance policies
1290	issued or renewed on or after January 1, 2006, the insurer must
1291	offer the policyholder the following alternative hurricane
1292	deductibles:
1293	1.  A hurricane deductible that applies on an annual basis
1294	as provided in paragraph (a); and
1295	2.  A hurricane deductible that applies to each hurricane.
1296	Section 14.  Effective October 1, 2005, section 627.7011,
1297	Florida Statutes, is amended to read:
1298	627.7011  Homeowners' policies; offer of replacement cost
1299	coverage and law and ordinance coverage.--
1300	(1)  Prior to issuing a homeowner's insurance policy on or
1301	after October 1, 2005 June 1, 1994, or prior to the first
1302	renewal of a homeowner's insurance policy on or after October 1,
1303	2005 June 1, 1994, the insurer must offer each of the following:
1304	(a)  A policy or endorsement providing that any loss which
1305	is repaired or replaced will be adjusted on the basis of
1306	replacement costs not exceeding policy limits as to the
1307	dwelling, rather than actual cash value, but not including costs
1308	necessary to meet applicable laws and ordinances regulating the
1309	construction, use, or repair of any property or requiring the
1310	tearing down of any property, including the costs of removing
1311	debris.
1312	(b)  A policy or endorsement providing that, subject to
1313	other policy provisions, any loss which is repaired or replaced
1314	at any location will be adjusted on the basis of replacement
1315	costs not exceeding policy limits as to the dwelling, rather
1316	than actual cash value, and also including costs necessary to
1317	meet applicable laws and ordinances regulating the construction,
1318	use, or repair of any property or requiring the tearing down of
1319	any property, including the costs of removing debris; however,
1320	such additional costs necessary to meet applicable laws and
1321	ordinances may be limited to either 25 percent or 50 percent of
1322	the dwelling limit, as selected by the policyholder, and such
1323	coverage shall apply only to repairs of the damaged portion of
1324	the structure unless the total damage to the structure exceeds
1325	50 percent of the replacement cost of the structure.
1326
1327	An insurer is not required to make the offers required by this
1328	subsection with respect to the issuance or renewal of a
1329	homeowner's policy that contains the provisions specified in
1330	paragraph (b) for law and ordinance coverage limited to 25
1331	percent of the dwelling limit, except that the insurer must
1332	offer the law and ordinance coverage limited to 50 percent of
1333	the dwelling limit. This subsection does not prohibit the offer
1334	of a guaranteed replacement cost policy.
1335	(2)  Unless the insurer obtains the policyholder's written
1336	refusal of the policies or endorsements specified in subsection
1337	(1), any policy covering the dwelling is deemed to include the
1338	coverage specified in paragraph (1)(b). The rejection or
1339	selection of alternative coverage shall be made on a form
1340	approved by the office. The form shall fully advise the
1341	applicant of the nature of the coverage being rejected. If this
1342	form is signed by a named insured, it will be conclusively
1343	presumed that there was an informed, knowing rejection of the
1344	coverage or election of the alternative coverage on behalf of
1345	all insureds. Unless the policyholder requests in writing the
1346	coverage specified in this section, it need not be provided in
1347	or supplemental to any other policy that renews, insures,
1348	extends, changes, supersedes, or replaces an existing policy
1349	when the policyholder has rejected the coverage specified in
1350	this section or has selected alternative coverage. The insurer
1351	must provide such policyholder with notice of the availability
1352	of such coverage in a form approved by the office at least once
1353	every 3 years. The failure to provide such notice constitutes a
1354	violation of this code, but does not affect the coverage
1355	provided under the policy.
1356	(3)  In the event of a loss for which a dwelling or
1357	personal property is insured on the basis of replacement costs,
1358	the insurer shall pay the replacement cost without reservation
1359	or holdback of any depreciation in value, whether or not the
1360	insured replaces or repairs the dwelling or property.
1361	(4)  Any homeowner's insurance policy issued or renewed on
1362	or after October 1, 2005, must include in bold type no smaller
1363	than 18 points the following statement:
1364
1365	"LAW AND ORDINANCE COVERAGE IS AN IMPORTANT COVERAGE THAT YOU
1366	MAY WISH TO PURCHASE. YOU MAY ALSO NEED TO CONSIDER THE PURCHASE
1367	OF FLOOD INSURANCE FROM THE NATIONAL FLOOD INSURANCE PROGRAM.
1368	WITHOUT THIS COVERAGE, YOU MAY HAVE UNCOVERED LOSSES. PLEASE
1369	DISCUSS THESE COVERAGES WITH YOUR INSURANCE AGENT."
1370
1371	The intent of this subsection is to encourage policyholders to
1372	purchase sufficient coverage to protect them in case events
1373	excluded from the standard homeowners policy, such as law and
1374	ordinance enforcement and flood, combine with covered events to
1375	produce damage or loss to the insured property. The intent is
1376	also to encourage policyholders to discuss these issues with
1377	their insurance agent.
1378	(5)(3)  Nothing in this section shall be construed to apply
1379	to policies not considered to be "homeowners' policies," as that
1380	term is commonly understood in the insurance industry. This
1381	section specifically does not apply to mobile home policies.
1382	Nothing in this section shall be construed as limiting the
1383	ability of any insurer to reject or nonrenew any insured or
1384	applicant on the grounds that the structure does not meet
1385	underwriting criteria applicable to replacement cost or law and
1386	ordinance policies or for other lawful reasons.
1387	Section 15.  Effective July 1, 2005, subsections (1) and
1388	(7) of section 627.7015, Florida Statutes, are amended, and
1389	subsection (2) of that section is reenacted, to read:
1390	627.7015  Alternative procedure for resolution of disputed
1391	property insurance claims.--
1392	(1)  PURPOSE AND SCOPE.--This section sets forth a
1393	nonadversarial alternative dispute resolution procedure for a
1394	mediated claim resolution conference prompted by the need for
1395	effective, fair, and timely handling of property insurance
1396	claims. There is a particular need for an informal,
1397	nonthreatening forum for helping parties who elect this
1398	procedure to resolve their claims disputes because most
1399	homeowner's and commercial residential insurance policies
1400	obligate insureds to participate in a potentially expensive and
1401	time-consuming adversarial appraisal process prior to
1402	litigation. The procedure set forth in this section is designed
1403	to bring the parties together for a mediated claims settlement
1404	conference without any of the trappings or drawbacks of an
1405	adversarial process. Before resorting to these procedures,
1406	insureds and insurers are encouraged to resolve claims as
1407	quickly and fairly as possible. This section is available with
1408	respect to claims under personal lines and commercial
1409	residential policies for all claimants and insurers prior to
1410	commencing the appraisal process, or commencing litigation. If
1411	requested by the insured, participation by legal counsel shall
1412	be permitted. Mediation under this section is also available to
1413	litigants referred to the department by a county court or
1414	circuit court. This section does not apply to commercial
1415	coverages, to private passenger motor vehicle insurance
1416	coverages, or to disputes relating to liability coverages in
1417	policies of property insurance.
1418	(2)  At the time a first-party claim within the scope of
1419	this section is filed, the insurer shall notify all first-party
1420	claimants of their right to participate in the mediation program
1421	under this section. The department shall prepare a consumer
1422	information pamphlet for distribution to persons participating
1423	in mediation under this section.
1424	(7)  If the insurer fails to comply with subsection (2) by
1425	failing to notify a first-party claimant of its right to
1426	participate in the mediation program under this section or if
1427	the insurer requests the mediation, and the mediation results
1428	are rejected by either party, the insured shall not be required
1429	to submit to or participate in any contractual loss appraisal
1430	process of the property loss damage as a precondition to legal
1431	action for breach of contract against the insurer for its
1432	failure to pay the policyholder's claims covered by the policy.
1433	Section 16.  Subsection (1) of section 627.702, Florida
1434	Statutes, is amended to read:
1435	627.702  Valued policy law.--
1436	(1)(a)  In the event of the total loss of any building,
1437	structure, mobile home as defined in s. 320.01(2), or
1438	manufactured building as defined in s. 553.36(12), located in
1439	this state and insured by any insurer as to a covered peril, in
1440	the absence of any change increasing the risk without the
1441	insurer's consent and in the absence of fraudulent or criminal
1442	fault on the part of the insured or one acting in her or his
1443	behalf, the insurer's liability, if any, under the policy for
1444	such total loss, if caused by a covered peril, shall be in the
1445	amount of money for which such property was so insured as
1446	specified in the policy and for which a premium has been charged
1447	and paid.
1448	(b)  The intent of this subsection is not to deprive an
1449	insurer of any proper defense under the policy, to create new or
1450	additional coverage under the policy, or to require an insurer
1451	to pay for a loss caused by a peril other than the covered
1452	peril. In furtherance of such legislative intent, when a loss
1453	was caused in part by a covered peril and in part by a
1454	noncovered peril, paragraph (a) does not apply. In such
1455	circumstances, the insurer's liability under this section shall
1456	be limited to the amount of the loss caused by the covered
1457	peril. However, if the covered perils alone would have caused
1458	the total loss, paragraph (a) shall apply. The insurer is never
1459	liable for more than the amount necessary to repair, rebuild, or
1460	replace the structure following the total loss, after
1461	considering all other benefits actually paid for the total loss.
1462	(c)  It is the intent of the Legislature that the amendment
1463	to this section shall not be applied retroactively and shall
1464	apply only to claims filed after effective date of such
1465	amendment.
1466	Section 17.  Section 627.706, Florida Statutes, is amended
1467	to read:
1468	627.706  Sinkhole insurance; definitions.--
1469	(1)  Every insurer authorized to transact property
1470	insurance in this state shall make available coverage for
1471	insurable sinkhole losses on any structure, including contents
1472	of personal property contained therein, to the extent provided
1473	in the form to which the sinkhole coverage attaches.
1474	(2)  As used in ss. 627.706-627.7074, and as used in
1475	connection with any policy providing coverage for sinkhole
1476	losses:
1477	(a)  "Sinkhole" means a landform created by subsidence of
1478	soil, sediment, or rock as underlying strata are dissolved by
1479	ground water. A sinkhole may form by collapse into subterranean
1480	voids created by dissolution of limestone or dolostone or by
1481	subsidence as these strata are dissolved.
1482	(b)(2)  "Sinkhole loss" means structural damage to the
1483	building, including the foundation, caused by sinkhole activity.
1484	Contents coverage shall apply only if there is structural damage
1485	to the building caused by sinkhole activity.
1486	(c)(3)  "Sinkhole activity loss" means actual physical
1487	damage to the property covered arising out of or caused by
1488	sudden settlement or systematic weakening collapse of the earth
1489	supporting such property only when such settlement or systematic
1490	weakening collapse results from movement or raveling of soils,
1491	sediments, or rock materials into subterranean voids created by
1492	the effect action of water on a limestone or similar rock
1493	formation.
1494	(d)  "Engineer" means a person, as defined in s. 471.005,
1495	who has a bachelor degree or higher in engineering with a
1496	specialty in the geotechnical engineering field. An engineer
1497	must have geotechnical experience and expertise in the
1498	identification of sinkhole activity as well as other potential
1499	causes of damage to the structure.
1500	(e)  "Professional geologist" means a person, as defined by
1501	s. 492.102, who has a bachelor degree or higher in geology or
1502	related earth science with expertise in the geology of Florida.
1503	A professional geologist must have geological experience and
1504	expertise in the identification of sinkhole activity as well as
1505	other potential geologic causes of damage to the structure.
1506	(3)(4)  Every insurer authorized to transact property
1507	insurance in this state shall make a proper filing with the
1508	office for the purpose of extending the appropriate forms of
1509	property insurance to include coverage for insurable sinkhole
1510	losses.
1511	Section 18.  Section 627.7065, Florida Statutes, is created
1512	to read:
1513	627.7065  Database of information relating to sinkholes;
1514	the Department of Financial Services and the Department of
1515	Environmental Protection.--
1516	(1)  The Legislature finds that there has been a dramatic
1517	increase in the number of sinkholes and insurance claims for
1518	sinkhole damage in the state during the past 10 years.
1519	Accordingly, the Legislature recognizes the need to track
1520	current and past sinkhole activity and to make the information
1521	available for prevention and remediation activities. The
1522	Legislature further finds that the Florida Geological Survey of
1523	the Department of Environmental Protection has created a partial
1524	database of some sinkholes identified in Florida, although the
1525	database is not reflective of all sinkholes or insurance claims
1526	for sinkhole damage. The Legislature determines that creating a
1527	complete electronic database of sinkhole activity serves an
1528	important purpose in protecting the public and in studying
1529	property claims activities in the insurance industry.
1530	(2)  The Department of Financial Services, including the
1531	employee of the Division of Consumer Services designated as the
1532	primary contact for consumers on issues relating to sinkholes,
1533	and the Office of the Insurance Consumer Advocate shall consult
1534	with the Florida Geological Survey and the Department of
1535	Environmental Protection to implement a statewide automated
1536	database of sinkholes and related activity identified in the
1537	state.
1538	(3)  Representatives of the Department of Financial
1539	Services, with the agreement of the Department of Environmental
1540	Protection, shall determine the form and content of the
1541	database. The content may include standards for reporting and
1542	investigating sinkholes for inclusion in the database and
1543	requirements for insurers to report to the departments the
1544	receipt of claims involving sinkhole loss and other similar
1545	activities. The Department of Financial Services may require
1546	insurers to report present and past data of sinkhole claims. The
1547	database also may include information of damage due to ground
1548	settling and other subsidence activity.
1549	(4)  The Department of Financial Services may manage the
1550	database or may contract for its management and maintenance. The
1551	Department of Environmental Protection shall investigate reports
1552	of sinkhole activity and include its findings and investigations
1553	in the database.
1554	(5)  The Department of Environmental Protection, in
1555	consultation with the Department of Financial Services, shall
1556	present a report of activities relating to the sinkhole
1557	database, including recommendations regarding the database and
1558	similar matters, to the Governor, the Speaker of the House of
1559	Representatives, the President of the Senate, and the Chief
1560	Financial Officer by December 31, 2005. The report may consider
1561	the need for the Legislature to create an entity to study the
1562	increase in sinkhole activity in the state and other similar
1563	issues relating to sinkhole damage, including recommendations
1564	and costs for staffing the entity. The report may include other
1565	information, as appropriate.
1566	(6)  The Department of Financial Services, in consultation
1567	with the Department of Environmental Protection, may adopt rules
1568	to implement this section.
1569	Section 19.  Section 627.707, Florida Statutes, is amended
1570	to read:
1571	627.707  Minimum Standards for investigation of sinkhole
1572	claims by insurers; nonrenewals.--
1573	(1)  Upon receipt of a claim for a sinkhole loss, an
1574	insurer must meet the following minimum standards in
1575	investigating a claim:
1576	(1)(a)  Upon receipt of a claim for a sinkhole loss, The
1577	insurer must make an inspection of the insured's premises to
1578	determine if there has been physical damage to the structure
1579	which may might be the result of sinkhole activity.
1580	(b)  If, upon the investigation pursuant to paragraph (a),
1581	the insurer discovers damage to a structure which is consistent
1582	with sinkhole activity or if the structure is located in close
1583	proximity to a structure in which sinkhole damage has been
1584	verified, then prior to denying a claim, the insurer must obtain
1585	a written certification from an individual qualified to
1586	determine the existence of sinkhole activity, stating that the
1587	cause of the claim is not sinkhole activity, and that the
1588	analysis conducted was of sufficient scope to eliminate sinkhole
1589	activity as the cause of damage within a reasonable professional
1590	probability. The written certification must also specify the
1591	professional discipline and professional licensure or
1592	registration under which the analysis was conducted.
1593	(2)  Following the insurer's initial inspection, the
1594	insurer shall engage an engineer or a professional geologist to
1595	conduct testing as provided in s. 627.7072 to determine the
1596	cause of the loss within a reasonable professional probability
1597	and issue a report as provided in s. 627.7073, if:
1598	(a)  The insurer is unable to identify a valid cause of the
1599	damage or discovers damage to the structure which is consistent
1600	with sinkhole loss; or
1601	(b)  The policyholder demands testing in accordance with
1602	this section or s. 627.7072.
1603	(3)  Following the initial inspection of the insured
1604	premises, the insurer shall provide written notice to the
1605	policyholder disclosing the following information:
1606	(a)  What the insurer has determined to be the cause of
1607	damage, if the insurer has made such a determination.
1608	(b)  A statement of the circumstances under which the
1609	insurer is required to engage an engineer or a professional
1610	geologist to verify or eliminate sinkhole loss and to engage an
1611	engineer to make recommendations regarding land and building
1612	stabilization and foundation repair.
1613	(c)  A statement regarding the right of the policyholder to
1614	request testing by an engineer or a professional geologist and
1615	the circumstances under which the policyholder may demand
1616	certain testing.
1617	(4)  If the insurer determines that there is no sinkhole
1618	loss, the insurer may deny the claim. If the insurer denies the
1619	claim, without performing testing under s. 627.7072, the
1620	policyholder may demand testing by the insurer under s.
1621	627.7072. The policyholder's demand for testing must be
1622	communicated to the insurer in writing after the policyholder's
1623	receipt of the insurer's denial of the claim.
1624	(5)(a)  Subject to paragraph (b), if a sinkhole loss is
1625	verified, the insurer shall pay to stabilize the land and
1626	building and repair the foundation in accordance with the
1627	recommendations of the engineer as provided under s. 627.7073,
1628	and in consultation with the policyholder, subject to the
1629	coverage and terms of the policy. The insurer shall pay for
1630	other repairs to the structure and contents in accordance with
1631	the terms of the policy.
1632	(b)  The insurer may limit its payment to the actual cash
1633	value of the sinkhole loss, not including underpinning or
1634	grouting or any other repair technique performed below the
1635	existing foundation of the building, until the policyholder
1636	enters into a contract for the performance of building
1637	stabilization or foundation repairs. After the policyholder
1638	enters into the contract, the insurer shall pay the amounts
1639	necessary to begin and perform such repairs as the work is
1640	performed and the expenses are incurred. The insurer may not
1641	require the policyholder to advance payment for such repairs. If
1642	repair has begun and the engineer selected or approved by the
1643	insurer determines that the repair cannot be completed within
1644	the policy limits, the insurer must either complete the
1645	engineer's recommended repair or tender the policy limits to the
1646	policyholder without a reduction for the repair expenses
1647	incurred.
1648	(6)  Except as provided in subsection (7), the fees and
1649	costs of the engineer or the professional geologist shall be
1650	paid by the insurer.
1651	(7)(c)  If the insurer obtains, pursuant to s. 627.7073
1652	paragraph (b), written certification that there is no sinkhole
1653	loss or that the cause of the damage claim was not sinkhole
1654	activity, and if the policyholder has submitted the sinkhole
1655	claim without good faith grounds for submitting such claim, the
1656	policyholder shall reimburse the insurer for 50 percent of the
1657	actual costs cost of the analyses and services provided analysis
1658	under ss. 627.7072 and 627.7073 paragraph (b); however, a
1659	policyholder is not required to reimburse an insurer more than
1660	$2,500 with respect to any claim. A policyholder is required to
1661	pay reimbursement under this subsection paragraph only if the
1662	insurer, prior to ordering the analysis under s. 627.7072
1663	paragraph (b), informs the policyholder in writing of the
1664	policyholder's potential liability for reimbursement and gives
1665	the policyholder the opportunity to withdraw the claim.
1666	(8)(2)  No insurer shall nonrenew any policy of property
1667	insurance on the basis of filing of claims for partial loss
1668	caused by sinkhole damage or clay shrinkage as long as the total
1669	of such payments does not exceed the current policy limits of
1670	coverage for property damage, and provided the insured has
1671	repaired the structure in accordance with the engineering
1672	recommendations upon which any payment or policy proceeds were
1673	based.
1674	(9)  The insurer may engage a structural engineer to make
1675	recommendations as to the repair of the structure.
1676	Section 20.  Section 627.7072, Florida Statutes, is created
1677	to read:
1678	627.7072  Testing standards for sinkholes.--
1679	(1)  The engineer and professional geologist shall perform
1680	such tests as sufficient, in their professional opinion, to
1681	determine the presence or absence of sinkhole loss or other
1682	cause of damage within reasonable professional probability and
1683	for the engineer to make recommendations regarding necessary
1684	building stabilization, and foundation repair.
1685	(2)  Testing by a professional geologist shall be conducted
1686	in compliance with the Florida Geological Survey Special
1687	Publication No. 57 (2005).
1688	Section 21.  Section 627.7073, Florida Statutes, is created
1689	to read:
1690	627.7073  Sinkhole reports.--
1691	(1)  Upon completion of testing as provided in s. 627.7072,
1692	the engineer and professional geologist shall issue a report and
1693	certification to the insurer and the policyholder as provided in
1694	this section.
1695	(a)  Sinkhole loss is verified if, based upon tests
1696	performed in accordance with s. 627.7072, an engineer and a
1697	professional geologist issue a written report and certification
1698	stating:
1699	1.  That the cause of the actual physical and structural
1700	damage is sinkhole activity within a reasonable professional
1701	probability.
1702	2.  That the analyses conducted were of sufficient scope to
1703	identify sinkhole activity as the cause of damage within a
1704	reasonable professional probability.
1705	3.  A description of the tests performed.
1706	4.  A recommendation by the engineer of methods for
1707	stabilizing the land and building and for making repairs to the
1708	foundation.
1709	(b)  If sinkhole activity is eliminated as the cause of
1710	damage to the structure, the engineer and professional geologist
1711	shall issue a written report and certification to the
1712	policyholder and the insurer stating:
1713	1.  That the cause of the damage is not sinkhole activity
1714	within a reasonable professional probability.
1715	2.  That the analyses and tests conducted were of
1716	sufficient scope to eliminate sinkhole activity as the cause of
1717	damage within a reasonable professional probability.
1718	3.  A statement of the cause of the damage within a
1719	reasonable professional probability.
1720	4.  A description of the tests performed.
1721	(c)  The respective findings, opinions, and recommendations
1722	of the engineer and professional geologist as to the
1723	verification or elimination of a sinkhole loss and the findings,
1724	opinions, and recommendations of the engineer as to land and
1725	building stabilization and foundation repair shall be presumed
1726	correct.
1727	(2)  Any insurer that has paid a claim for a sinkhole loss
1728	shall file a copy of the report and certification, prepared
1729	pursuant to subsection (1), with the county property appraiser
1730	who shall record the report and certification with the parcel
1731	number. The insurer shall bear the cost of filing and recording
1732	the report and certification. There shall be no cause of action
1733	or liability against an insurer for compliance with this
1734	section. The seller of real property upon which a sinkhole claim
1735	has been made shall disclose to the buyer of such property that
1736	a claim has been paid and whether or not the full amount of the
1737	proceeds were used to repair the sinkhole damage.
1738	Section 22.  Effective October 1, 2005, and applicable to
1739	policies issued or renewed on or after that date, section
1740	627.711, Florida Statutes, is created to read:
1741	627.711  Notice of premium discounts for hurricane loss
1742	mitigation.--Using a form prescribed by the Office of Insurance
1743	Regulation, the insurer shall clearly notify the applicant or
1744	policyholder of any personal lines residential property
1745	insurance policy, at the time of the issuance of the policy and
1746	at each renewal, of the availability and the range of each
1747	premium discount, credit, other rate differential, or reduction
1748	in deductibles for properties on which fixtures or construction
1749	techniques demonstrated to reduce the amount of loss in a
1750	windstorm can or have been installed or implemented. The
1751	prescribed form shall describe generally what actions the
1752	policyholders may be able to take to reduce their windstorm
1753	premium. The prescribed form and a list of such ranges approved
1754	by the office for each insurer licensed in the state and
1755	providing such discounts, credits, other rate differentials, or
1756	reductions in deductibles for properties described in this
1757	subsection shall be available for electronic viewing and
1758	download from the Department of Financial Services' or the
1759	Office of Insurance Regulation's Internet website. The Financial
1760	Services Commission may adopt rules to implement this
1761	subsection.
1762	Section 23.  (1)(a)  Upon an insurer's receiving a
1763	communication with respect to a claim, the insurer shall, within
1764	14 calendar days, review and acknowledge receipt of such
1765	communication unless payment is made within that period of time
1766	or unless the failure to acknowledge is caused by factors beyond
1767	the control of the insurer which reasonably prevent such
1768	acknowledgement. If the acknowledgement is not in writing, a
1769	notification indicating acknowledgement shall be made in the
1770	insurer's claim file and dated. A communication made to or by an
1771	agent of an insurer with respect to a claim shall constitute
1772	communication to or by the insurer.
1773	(b)  As used in this subsection, the term "agent" means any
1774	person to whom an insurer has granted authority or
1775	responsibility to receive or make such communications with
1776	respect to claims on behalf of the insurer.
1777	(c)  This subsection shall not apply to claimants
1778	represented by counsel beyond those communications necessary to
1779	provide forms and instructions.
1780	(2)  Such acknowledgement shall be responsive to the
1781	communication. If the communication constitutes a notification
1782	of a claim, unless the acknowledgement reasonably advises the
1783	claimant that the claim appears not to be covered by the
1784	insurer, the acknowledgement shall provide necessary claim
1785	forms, and instructions, including an appropriate telephone
1786	number.
1787	(3)  Unless otherwise provided by the policy of insurance
1788	or by law, within 10 working days after an insurer receives
1789	proof of loss statements the insurer shall begin such
1790	investigation as is reasonably necessary unless the failure to
1791	begin such investigation is caused by factors beyond the control
1792	of the insurer which reasonably prevent the commencement of such
1793	investigation.
1794	(4)  For purposes of this section, the term "insurer" means
1795	any residential property insurer.
1796	Section 24.  Task Force on Long-Term Solutions for
1797	Florida's Hurricane Insurance Market.--
1798	(1)  TASK FORCE CREATED.--There is created the Task Force
1799	on Long-Term Solutions for Florida's Hurricane Insurance Market.
1800	(2)  ADMINISTRATION.--The task force shall be
1801	administratively housed within the Office of the Chief Financial
1802	Officer, but shall operate independently of any state officer or
1803	agency. The Office of the Chief Financial Officer shall provide
1804	such administrative support as the task force deems necessary to
1805	accomplish its mission and shall provide necessary funding for
1806	the task force within its existing resources. The Executive
1807	Office of the Governor, the Department of Financial Services,
1808	and the Office of Insurance Regulation shall provide substantive
1809	staff support for the task force.
1810	(3)  MEMBERSHIP.--The members of the task force shall be
1811	appointed as follows:
1812	(a)  The Governor shall appoint three members who have
1813	expertise in financial matters, one of whom is a representative
1814	of the mortgage lending industry, one of whom is a
1815	representative of the real estate or construction industry, and
1816	one of whom is a representative of insurance consumers.
1817	(b)  The Chief Financial Officer shall appoint three
1818	members who have expertise in financial matters, one of whom is
1819	a representative of a national property insurer or of a Florida-
1820	only subsidiary of a national property insurer, one of whom is a
1821	representative of a domestic property insurer in this state, and
1822	one of whom is a representative of insurance agents.
1823	(c)  The President of the Senate shall appoint three
1824	members.
1825	(d)  The Speaker of the House of Representatives shall
1826	appoint three members.
1827	(e)  The Commissioner of Insurance Regulation shall serve
1828	as an ex officio voting member of the task force.
1829
1830	Members of the task force shall serve without compensation but
1831	are entitled to receive reimbursement for per diem and travel
1832	expenses as provided in section 112.061, Florida Statutes.
1833	(4)  PURPOSE AND INTENT.--The Legislature recognizes that
1834	the continued availability of hurricane insurance coverage for
1835	property owners in this state is essential to the state's
1836	economic survival. The Legislature further recognizes that
1837	legislative efforts to resolve problems in the hurricane
1838	insurance market in 2005 may not be sufficient to address this
1839	state's long-term needs and that further action may be necessary
1840	in subsequent legislative sessions. The purpose of the task
1841	force is to make recommendations to the legislative and
1842	executive branches of this state's government relating to the
1843	creation and maintenance of insurance capacity in the private
1844	sector and public sector which is sufficient to ensure that all
1845	property owners in this state are able to obtain appropriate
1846	insurance coverage for hurricane losses, as further described in
1847	this section.
1848	(5)  SPECIFIC TASKS.--The task force shall conduct such
1849	research and hearings as it deems necessary to achieve the
1850	purposes specified in subsection (4) and shall develop
1851	information on relevant issues, including, but not limited to,
1852	the following issues:
1853	(a)  Whether this state currently has sufficient hurricane
1854	insurance capacity to ensure the continuation of a healthy,
1855	competitive marketplace, taking into consideration both private-
1856	sector resources and public-sector resources.
1857	(b)  Identifying the future demands on this state's
1858	hurricane insurance capacity, taking into account population
1859	growth, coastal growth, and anticipated future hurricane
1860	activity.
1861	(c)  Whether the Florida Hurricane Catastrophe Fund
1862	fulfilled its purpose of creating additional insurance capacity
1863	sufficient to ameliorate the current dangers to the state's
1864	economy and to the public health, safety, and welfare in its
1865	response to the 2004 hurricane season.
1866	(d)  The extent to which the growth in Citizens Property
1867	Insurance Corporation is attributable to insufficient insurance
1868	capacity.
1869	(e)  The extent to which the growth trends of Citizens
1870	Property Insurance Corporation create long-term problems for
1871	property owners, buyers, and sellers in this state and for other
1872	persons and businesses that depend on a viable market.
1873	(f)  The operation and role of Citizens Property Insurance
1874	Corporation, including:
1875	1.  How to ensure that the corporation operates as an
1876	insurer of last resort which does not compete with insurers in
1877	the voluntary market, but which charges rates that are not
1878	excessive, inadequate, or unfairly discriminatory;
1879	2.  Whether the bonuses paid by the corporation to carriers
1880	taking policies out of the corporation provide a cost-effective
1881	means of reducing the potential liability of the corporation;
1882	3.  Whether the "Consumer Choice" law should be repealed or
1883	amended to ensure that the corporation serves as the insurer of
1884	last resort;
1885	4.  Whether coverage amounts should be limited;
1886	5.  Whether the corporation has hired an adequate level of
1887	permanent claims and adjusting staff in addition to outsourcing
1888	its claims-adjusting functions to independent adjusting firms;
1889	6.  The effect of reducing or expanding the areas that are
1890	eligible for coverage in the high-risk, wind-only account;
1891	7.  Whether the corporation should purchase reinsurance or
1892	take other actions that reduce the potential for debt financing
1893	and deficit assessments; and
1894	8.  An evaluation of the infrastructure and administration
1895	of the corporation and how to improve customer service, claims
1896	handling, and communication and the exchange of information with
1897	agents of policyholders of the corporation.
1898	(6)  REPORT AND RECOMMENDATIONS.--By April 1, 2006, the
1899	task force shall provide a report containing findings relating
1900	to the tasks identified in subsection (5) and recommendations
1901	consistent with the purposes of this section and also consistent
1902	with such findings. The task force shall submit the report to
1903	the Governor, the Chief Financial Officer, the President of the
1904	Senate, and the Speaker of the House of Representatives. The
1905	task force may also submit such interim reports as it deems
1906	appropriate.
1907	(7)  ADDITIONAL ACTIVITIES.--The task force shall monitor
1908	the implementation of hurricane insurance-related legislation
1909	enacted during the 2005 Regular Session and shall make such
1910	additional recommendations as it deems appropriate for further
1911	legislative action during the 2004-2006 legislative biennium.
1912	(8)  EXPIRATION.--The task force shall expire at the end of
1913	the 2004-2006 legislative biennium.
1914	Section 25.  The Office of Insurance Regulation shall, by
1915	January 1, 2006, submit a report to the President of the Senate,
1916	the Speaker of the House of Representatives, the minority party
1917	leaders of the Senate and the House of Representatives, and the
1918	chairs of the standing committees of the Senate and the House of
1919	Representatives having jurisdiction over matters relating to
1920	property and casualty insurance. The report shall include
1921	findings and recommendations on requiring residential property
1922	insurers to provide law and ordinance coverage for residential
1923	property insurance policies, the increase or decrease in
1924	insurance costs associated with requiring such coverage, and
1925	such other related information as the Office of Insurance
1926	Regulation determines is appropriate for the Legislature to
1927	consider.
1928	Section 26.  Notwithstanding that revenues of Citizens
1929	Property Insurance Corporation are not state revenues, the
1930	Auditor General shall perform an operational audit, as defined
1931	in section 11.45(1), Florida Statutes, of the Citizens Property
1932	Insurance Corporation created under section 627.351(6), Florida
1933	Statutes. The scope of the audit shall also include:
1934	(1)  An analysis of the corporation's infrastructure,
1935	customer service, claims handling, accessibility of policyholder
1936	information to the agent of record, take-out programs, take-out
1937	bonuses, and financing arrangements.
1938	(2)  An evaluation of costs associated with the
1939	administration and servicing of the policies issued by the
1940	corporation to determine alternatives by which costs can be
1941	reduced, customer service improved, and claims handling
1942	improved.
1943
1944	The audit shall contain policy alternatives for the Legislature
1945	to consider. The Auditor General shall submit a report to the
1946	Governor, the President of the Senate, and the Speaker of the
1947	House of Representatives no later than February 1, 2006.
1948	Section 27.  The board of governors of the Citizens
1949	Property Insurance Corporation created under section 627.351(6),
1950	Florida Statutes, shall, by February 1, 2006, submit a report to
1951	the President of the Senate, the Speaker of the House of
1952	Representatives, the minority party leaders of the Senate and
1953	the House of Representatives, and the chairs of the standing
1954	committees of the Senate and the House of Representatives having
1955	jurisdiction over matters relating to property and casualty
1956	insurance. The report shall include the board's findings and
1957	recommendations on the following issues:
1958	(1)  The number of policies and the aggregate premium of
1959	the Citizens Property Insurance Corporation, before and after
1960	enactment of this act, and projections for future policy and
1961	premium growth.
1962	(2)  Increases or decreases in availability of residential
1963	property coverage in the voluntary market and the effectiveness
1964	of this act in improving the availability of residential
1965	property coverage in the voluntary market in the state.
1966	(3)  The board's efforts to depopulate the corporation and
1967	the willingness of insurers in the voluntary market to avail
1968	themselves of depopulation incentives.
1969	(4)  Further actions that could be taken by the Legislature
1970	to improve availability of residential property coverage in the
1971	voluntary and residual markets.
1972	(5)  Actions that the board has taken to restructure the
1973	corporation and recommendations for legislative action to
1974	restructure the corporation, including, but not limited to,
1975	actions relating to claims handling and customer service.
1976	(6)  Projected surpluses or deficits and possible means of
1977	providing funding to ensure the continued solvency of the
1978	corporation.
1979	(7)  The corporation's efforts to procure catastrophe
1980	reinsurance to cover its projected 100-year probable maximum
1981	loss with specification as to what best efforts were made by the
1982	corporation to procure such reinsurance.
1983	(8)  Such other issues as the board determines are worthy
1984	of the Legislature's consideration.
1985	Section 28.  For the 2005-2006 fiscal year, there is
1986	appropriated $350,000 in recurring funds from the Insurance
1987	Regulatory Trust Fund and four positions are authorized to the
1988	Office of the Consumer Advocate within the Department of
1989	Financial Services for the purposes provided in section
1990	627.0613, Florida Statutes.
1991	Section 29.  The amendment to section 627.0628, Florida
1992	Statutes, and the creation of section 627.06281, Florida
1993	Statutes, as provided in this act shall take effect on the same
1994	date that House Bill 1939, Senate Bill 1478, or similar
1995	legislation takes effect, if such legislation is adopted in the
1996	same legislative session or an extension thereof and becomes a
1997	law.
1998	Section 30.  Except as otherwise expressly provided in this
1999	act, this act shall take effect upon becoming a law.
2000
2001	================ T I T L E  A M E N D M E N T =============
2002
2003	Delete everything before the enacting clause and insert:
2004	A bill to be entitled
2005	An act relating to property insurance; amending s.
2006	215.555, F.S.; revising the retention of losses for which
2007	an insurer is not entitled to reimbursement from the
2008	Florida Hurricane Catastrophe Fund; amending s. 215.559,
2009	F.S.; revising the allocation of funds appropriated to the
2010	Department of Community Affairs from the Florida Hurricane
2011	Catastrophe Fund for the Hurricane Loss Mitigation
2012	Program; requiring that the department establish a low-
2013	interest loan program and pilot project for hurricane loss
2014	mitigation; authorizing contractual agreements between the
2015	department and financial institutions; authorizing the
2016	Department of Community Affairs to adopt rules; amending
2017	s. 627.062, F.S.; requiring the Office of Insurance
2018	Regulation to submit a proposed plan to the Legislature
2019	establishing uniform rating territories to be used by
2020	insurers for residential property insurance rate filings;
2021	requiring a further act of the Legislature to implement
2022	the plan; limiting the recoupment by an insurer in its
2023	rates of the reimbursement premium it pays to the Florida
2024	Hurricane Catastrophe Fund; amending s. 627.0628, F.S.;
2025	restricting the admissibility and relevance in rate
2026	proceedings of findings of the Florida Commission on
2027	Hurricane Loss Projection Methodology; amending s.
2028	627.0629, F.S.; lowering the percentage amount of a rate
2029	filing based on a computer model which requires a public
2030	hearing; creating s. 627.06281, F.S.; requiring
2031	residential property insurers and rating and advisory
2032	organizations to report hurricane loss data for
2033	development of a public hurricane model for hurricane loss
2034	projections; amending s. 627.351, F.S.; revising the
2035	appointments to the board and the approval of officers and
2036	employees of the corporation; providing additional
2037	legislative intent relating to the Citizens Property
2038	Insurance Corporation; authorizing the corporation to
2039	issue bonds and incur indebtedness for certain purposes;
2040	requiring creation of a Market Accountability Advisory
2041	Committee to assist the corporation for certain purposes;
2042	providing for appointment of committee members; providing
2043	for terms; requiring reports to the corporation; revising
2044	requirements for the plan of operation of the corporation;
2045	deleting an obsolete reporting requirement; establishing a
2046	pilot program; specifying nonapplication of certain policy
2047	requirements in a county lacking reasonable degrees of
2048	competition for certain policies under certain
2049	circumstances; requiring the commission to adopt rules;
2050	deleting an obsolete rate methodology panel reporting
2051	requirement provision; creating s. 627.40951, F.S.;
2052	providing legislative findings and intent; providing for
2053	an advisory committee; providing for membership; providing
2054	for recommendations to be submitted to the Legislature
2055	regarding standard residential property insurance
2056	policies; amending s. 627.411, F.S.; adding grounds for
2057	which the Office of Insurance Regulation must disapprove a
2058	form filed by an insurer; amending s. 627.4133, F.S.;
2059	prohibiting insurers from canceling or nonrenewing
2060	residential property insurance policies under certain
2061	emergency circumstances; providing exceptions; providing
2062	notice requirements; providing application to personal
2063	residential and commercial residential policies covering
2064	certain damaged property; extending the effective date of
2065	certain policies under certain hurricane circumstances;
2066	authorizing the insurer to collect premiums for the
2067	extended period; providing nonapplication; amending s.
2068	627.4143, F.S.; requiring insurers to provide personal
2069	lines property insurance policyholders with a checklist of
2070	items contained in policies; authorizing the Financial
2071	Services Commission to adopt rules; prescribing elements
2072	to be contained in the checklist; requiring the checklist
2073	and outline of insurance coverage to be sent with each
2074	renewal; clarifying that homeowners' insurance includes
2075	mobile homeowners', dwelling, and condominium unit owners'
2076	insurance for purposes of the outline of coverage;
2077	amending s. 627.701, F.S.; increasing the maximum
2078	allowable hurricane deductible for personal lines and
2079	certain commercial lines residential policies; requiring
2080	insurers to offer specified hurricane deductibles for such
2081	policies; requiring insurers to provide written notice
2082	explaining hurricane deductible options for such policies;
2083	providing for computation and display of the dollar value
2084	of hurricane deductibles; requiring insurers to compute
2085	and display actual dollar values of certain riders for
2086	certain policies; amending s. 627.701, F.S.; providing
2087	that the requirement for a hurricane deductible to apply
2088	on an annual basis applies to personal lines residential
2089	property insurance policies; requiring insurers that
2090	provide commercial residential property insurance to offer
2091	alternative hurricane deductibles that apply on an annual
2092	basis or to each hurricane; amending s. 627.7011, F.S.;
2093	requiring insurers to offer coverage for additional costs
2094	of repair due to laws and ordinances; requiring insurers
2095	to pay the replacement cost for a loss insured on that
2096	basis, whether or not the insured replaces or repairs the
2097	dwelling or property; requiring certain homeowner's
2098	insurance policies to contain a specified statement;
2099	providing intent; amending s. 627.7015, F.S.; revising
2100	purpose and scope provisions relating to an alternative
2101	procedure for resolution of disputed property insurance
2102	claims; providing that failure of an insurer to notify a
2103	claimant of the availability of mediation excuses an
2104	insured from being required to submit to certain loss
2105	appraisal processes; amending s. 627.702, F.S.; providing
2106	legislative intent regarding the requirement that an
2107	insurer pay policy limits if there is a total loss of a
2108	building; providing nonapplication of certain insurer
2109	liability requirements under certain circumstances;
2110	limiting an insurer's liability to certain loss covered by
2111	a covered peril; amending s. 627.706, F.S., relating to
2112	sinkhole insurance; providing definitions; creating s.
2113	627.7065, F.S.; providing legislative findings; requiring
2114	the Department of Financial Services and the Office of the
2115	Insurance Consumer Advocate to consult with the Florida
2116	Geological Survey and the Department of Environmental
2117	Protection to implement a statewide automated database of
2118	sinkholes and related activity; providing requirements for
2119	the form and content of the database; authorizing the
2120	Department of Financial Services to require insurers to
2121	provide certain information; providing for management of
2122	the database; requiring the department to investigate
2123	sinkhole activity reports and include findings and
2124	investigations in the database; requiring the Department
2125	of Environmental Protection to report on the database to
2126	the Governor, Legislature, and Chief Financial Officer;
2127	authorizing the Department of Financial Services to adopt
2128	implementing rules; amending s. 627.707, F.S.; revising
2129	standards for investigations of sinkhole claims by
2130	insurers; requiring an insurer to engage an engineer or
2131	professional geologist for certain purposes; requiring a
2132	report under certain circumstances; requiring an insurer
2133	to provide written notice to a policyholder disclosing
2134	certain information; authorizing an insurer to deny a
2135	claim under certain circumstances; authorizing a
2136	policyholder to demand certain testing; providing
2137	requirements; specifying required activities for insurers
2138	if a sinkhole loss is verified; specifying payment
2139	requirements for insurers; providing limitations;
2140	requiring the insurer to pay fees of the engineer and
2141	geologist; authorizing an insurer to engage a structural
2142	engineer for certain purposes; creating s. 627.7072, F.S.;
2143	specifying requirements for sinkhole testing by engineers
2144	and geologists; creating s. 627.7073, F.S.; providing
2145	reporting requirements for engineers and geologists after
2146	testing for sinkholes; specifying a presumption of
2147	correctness of certain findings; requiring an insurer
2148	paying a sinkhole loss claim to file a report and
2149	certification with the county property appraiser;
2150	requiring the property appraiser to record the report and
2151	certification; requiring the insurer to bear the cost of
2152	filing and recording; requiring a seller of certain
2153	property to make certain disclosures to property buyers
2154	under certain circumstances; creating s. 627.711, F.S.;
2155	requiring insurers to notify applicants or policyholders
2156	of the availability and amounts of certain discounts,
2157	credits, rate differentials, or reductions in deductibles
2158	for properties on which certain fixtures have been
2159	installed or construction techniques have been
2160	implemented; requiring insurers to provide qualifying
2161	information; authorizing the Financial Services Commission
2162	to adopt rules; creating s. 627.712, F.S.; requiring
2163	property insurers to pay or deny claims within certain
2164	time periods; providing that overdue payments bear
2165	interest; creating the Task Force on Long-Term Solutions
2166	for Florida's Hurricane Insurance Market; requiring the
2167	Executive Office of the Governor, the Department of
2168	Financial Services, and the Office of Insurance Regulation
2169	to provide administrative support and staff support;
2170	providing membership; providing purpose and intent;
2171	providing for research and hearings on specified issues;
2172	requiring the task force to submit a report of findings
2173	and recommendations to the Governor, the Chief Financial
2174	Officer, the President of the Senate, and the Speaker of
2175	the House of Representatives; providing for additional
2176	activities; providing for expiration of the task force;
2177	requiring the Office of Insurance Regulation to submit a
2178	report to the Legislature relating to residential property
2179	insurance; providing report requirements; requiring the
2180	Office of the Auditor General to conduct an operational
2181	audit of Citizens Property Insurance Corporation;
2182	specifying audit requirements; requiring a report;
2183	requiring the board of governors of the Citizens Property
2184	Insurance Corporation to submit a report to the
2185	Legislature relating to property and casualty insurance;
2186	specifying report requirements; providing an appropriation
2187	and authorizing positions; providing a contingent
2188	effective date; providing effective dates.

CODING: Words stricken are deletions; words underlined are additions.