HB 1171

1	A bill to be entitled
2	An act relating to residential property insurance;
3	amending s. 215.555, F.S.; excluding nonassessable
4	residential property insurance from emergency assessments
5	for the Florida Hurricane Catastrophe Fund; amending s.
6	627.062, F.S.; providing that nonassessable residential
7	property insurance is not subject to determinations as
8	excessive or unfairly discriminatory; providing an
9	exception; preserving the authority of the Office of
10	Insurance Regulation to disapprove rates or rate filings;
11	amending s. 627.351, F.S.; excluding nonassessable
12	residential property insurance policies from aggregate
13	statewide direct written premium for subject lines of
14	business for purposes of calculating certain emergency
15	assessments; excluding nonassessable residential property
16	insurance from subject lines of business; amending s.
17	627.4025, F.S.; defining the terms "assessable residential
18	property insurance" and "nonassessable residential
19	property insurance" for purposes of personal lines
20	residential coverage; creating s. 627.7031, F.S.;
21	authorizing insurers to offer nonassessable residential
22	property insurance policies; authorizing residential
23	property owners to purchase nonassessable residential
24	property insurance policies; requiring applications for a
25	nonassessable residential property policy to contain a
26	specified disclaimer; providing an effective date.
27
28	Be It Enacted by the Legislature of the State of Florida:
29
30	Section 1.  Paragraph (b) of subsection (6) of section
31	215.555, Florida Statutes, is amended to read:
32	215.555  Florida Hurricane Catastrophe Fund.--
33	(6)  REVENUE BONDS.--
34	(b)  Emergency assessments.--
35	1.  If the board determines that the amount of revenue
36	produced under subsection (5) is insufficient to fund the
37	obligations, costs, and expenses of the fund and the
38	corporation, including repayment of revenue bonds and that
39	portion of the debt service coverage not met by reimbursement
40	premiums, the board shall direct the Office of Insurance
41	Regulation to levy, by order, an emergency assessment on direct
42	premiums for all property and casualty lines of business in this
43	state, including property and casualty business of surplus lines
44	insurers regulated under part VIII of chapter 626, but not
45	including any workers' compensation premiums or medical
46	malpractice premiums and any premiums for nonassessable
47	residential property insurance as defined in s. 627.4025. As
48	used in this subsection, except as otherwise provided in this
49	subparagraph, the term "property and casualty business" includes
50	all lines of business identified on Form 2, Exhibit of Premiums
51	and Losses, in the annual statement required of authorized
52	insurers by s. 624.424 and any rule adopted under this section,
53	except for those lines identified as accident and health
54	insurance and except for policies written under the National
55	Flood Insurance Program. The assessment shall be specified as a
56	percentage of direct written premium and is subject to annual
57	adjustments by the board in order to meet debt obligations. The
58	same percentage shall apply to all policies in lines of business
59	subject to the assessment issued or renewed during the 12-month
60	period beginning on the effective date of the assessment.
61	2.  A premium is not subject to an annual assessment under
62	this paragraph in excess of 6 percent of premium with respect to
63	obligations arising out of losses attributable to any one
64	contract year, and a premium is not subject to an aggregate
65	annual assessment under this paragraph in excess of 10 percent
66	of premium. An annual assessment under this paragraph shall
67	continue as long as the revenue bonds issued with respect to
68	which the assessment was imposed are outstanding, including any
69	bonds the proceeds of which were used to refund the revenue
70	bonds, unless adequate provision has been made for the payment
71	of the bonds under the documents authorizing issuance of the
72	bonds.
73	3.  Emergency assessments shall be collected from
74	policyholders. Emergency assessments shall be remitted by
75	insurers as a percentage of direct written premium for the
76	preceding calendar quarter as specified in the order from the
77	Office of Insurance Regulation. The office shall verify the
78	accurate and timely collection and remittance of emergency
79	assessments and shall report the information to the board in a
80	form and at a time specified by the board. Each insurer
81	collecting assessments shall provide the information with
82	respect to premiums and collections as may be required by the
83	office to enable the office to monitor and verify compliance
84	with this paragraph.
85	4.  With respect to assessments of surplus lines premiums,
86	each surplus lines agent shall collect the assessment at the
87	same time as the agent collects the surplus lines tax required
88	by s. 626.932, and the surplus lines agent shall remit the
89	assessment to the Florida Surplus Lines Service Office created
90	by s. 626.921 at the same time as the agent remits the surplus
91	lines tax to the Florida Surplus Lines Service Office. The
92	emergency assessment on each insured procuring coverage and
93	filing under s. 626.938 shall be remitted by the insured to the
94	Florida Surplus Lines Service Office at the time the insured
95	pays the surplus lines tax to the Florida Surplus Lines Service
96	Office. The Florida Surplus Lines Service Office shall remit the
97	collected assessments to the fund or corporation as provided in
98	the order levied by the Office of Insurance Regulation. The
99	Florida Surplus Lines Service Office shall verify the proper
100	application of such emergency assessments and shall assist the
101	board in ensuring the accurate and timely collection and
102	remittance of assessments as required by the board. The Florida
103	Surplus Lines Service Office shall annually calculate the
104	aggregate written premium on property and casualty business,
105	other than workers' compensation and medical malpractice,
106	procured through surplus lines agents and insureds procuring
107	coverage and filing under s. 626.938 and shall report the
108	information to the board in a form and at a time specified by
109	the board.
110	5.  Any assessment authority not used for a particular
111	contract year may be used for a subsequent contract year. If,
112	for a subsequent contract year, the board determines that the
113	amount of revenue produced under subsection (5) is insufficient
114	to fund the obligations, costs, and expenses of the fund and the
115	corporation, including repayment of revenue bonds and that
116	portion of the debt service coverage not met by reimbursement
117	premiums, the board shall direct the Office of Insurance
118	Regulation to levy an emergency assessment up to an amount not
119	exceeding the amount of unused assessment authority from a
120	previous contract year or years, plus an additional 4 percent
121	provided that the assessments in the aggregate do not exceed the
122	limits specified in subparagraph 2.
123	6.  The assessments otherwise payable to the corporation
124	under this paragraph shall be paid to the fund unless and until
125	the Office of Insurance Regulation and the Florida Surplus Lines
126	Service Office have received from the corporation and the fund a
127	notice, which shall be conclusive and upon which they may rely
128	without further inquiry, that the corporation has issued bonds
129	and the fund has no agreements in effect with local governments
130	under paragraph (c). On or after the date of the notice and
131	until the date the corporation has no bonds outstanding, the
132	fund shall have no right, title, or interest in or to the
133	assessments, except as provided in the fund's agreement with the
134	corporation.
135	7.  Emergency assessments are not premium and are not
136	subject to the premium tax, to the surplus lines tax, to any
137	fees, or to any commissions. An insurer is liable for all
138	assessments that it collects and must treat the failure of an
139	insured to pay an assessment as a failure to pay the premium. An
140	insurer is not liable for uncollectible assessments.
141	8.  When an insurer is required to return an unearned
142	premium, it shall also return any collected assessment
143	attributable to the unearned premium. A credit adjustment to the
144	collected assessment may be made by the insurer with regard to
145	future remittances that are payable to the fund or corporation,
146	but the insurer is not entitled to a refund.
147	9.  When a surplus lines insured or an insured who has
148	procured coverage and filed under s. 626.938 is entitled to the
149	return of an unearned premium, the Florida Surplus Lines Service
150	Office shall provide a credit or refund to the agent or such
151	insured for the collected assessment attributable to the
152	unearned premium prior to remitting the emergency assessment
153	collected to the fund or corporation.
154	10.  The exemption of medical malpractice insurance
155	premiums from emergency assessments under this paragraph is
156	repealed May 31, 2010, and medical malpractice insurance
157	premiums shall be subject to emergency assessments attributable
158	to loss events occurring in the contract years commencing on
159	June 1, 2010.
160	Section 2.  Paragraph (k) is added to subsection (2) of
161	section 627.062, Florida Statutes, to read:
162	627.062  Rate standards.--
163	(2)  As to all such classes of insurance:
164	(k)1.  Notwithstanding any other provision of this section,
165	a rate filing for nonassessable residential property insurance
166	as defined in s. 627.4025 is not subject to a determination that
167	the rate is excessive or unfairly discriminatory, except as
168	provided in subparagraph 3.
169	2.  This paragraph does not apply to filings for assessable
170	residential property insurance as defined in s. 627.4025.
171	3.  This paragraph does not affect the power of the office
172	to disapprove rates as inadequate or to disapprove a rate filing
173	for the use of a rating factor that is unlawful under the laws
174	of this state.
175
176	The provisions of this subsection shall not apply to workers'
177	compensation and employer's liability insurance and to motor
178	vehicle insurance.
179	Section 3.  Paragraph (b) of subsection (6) of section
180	627.351, Florida Statutes, is amended to read:
181	627.351  Insurance risk apportionment plans.--
182	(6)  CITIZENS PROPERTY INSURANCE CORPORATION.--
183	(b)1.  All insurers authorized to write one or more subject
184	lines of business in this state are subject to assessment by the
185	corporation and, for the purposes of this subsection, are
186	referred to collectively as "assessable insurers." Insurers
187	writing one or more subject lines of business in this state
188	pursuant to part VIII of chapter 626 are not assessable
189	insurers, but insureds who procure one or more subject lines of
190	business in this state pursuant to part VIII of chapter 626 are
191	subject to assessment by the corporation and are referred to
192	collectively as "assessable insureds." An authorized insurer's
193	assessment liability shall begin on the first day of the
194	calendar year following the year in which the insurer was issued
195	a certificate of authority to transact insurance for subject
196	lines of business in this state and shall terminate 1 year after
197	the end of the first calendar year during which the insurer no
198	longer holds a certificate of authority to transact insurance
199	for subject lines of business in this state.
200	2.a.  All revenues, assets, liabilities, losses, and
201	expenses of the corporation shall be divided into three separate
202	accounts as follows:
203	(I)  A personal lines account for personal residential
204	policies issued by the corporation or issued by the Residential
205	Property and Casualty Joint Underwriting Association and renewed
206	by the corporation that provide comprehensive, multiperil
207	coverage on risks that are not located in areas eligible for
208	coverage in the Florida Windstorm Underwriting Association as
209	those areas were defined on January 1, 2002, and for such
210	policies that do not provide coverage for the peril of wind on
211	risks that are located in such areas;
212	(II)  A commercial lines account for commercial residential
213	and commercial nonresidential policies issued by the corporation
214	or issued by the Residential Property and Casualty Joint
215	Underwriting Association and renewed by the corporation that
216	provide coverage for basic property perils on risks that are not
217	located in areas eligible for coverage in the Florida Windstorm
218	Underwriting Association as those areas were defined on January
219	1, 2002, and for such policies that do not provide coverage for
220	the peril of wind on risks that are located in such areas; and
221	(III)  A high-risk account for personal residential
222	policies and commercial residential and commercial
223	nonresidential property policies issued by the corporation or
224	transferred to the corporation that provide coverage for the
225	peril of wind on risks that are located in areas eligible for
226	coverage in the Florida Windstorm Underwriting Association as
227	those areas were defined on January 1, 2002. The corporation may
228	offer policies that provide multiperil coverage and the
229	corporation shall continue to offer policies that provide
230	coverage only for the peril of wind for risks located in areas
231	eligible for coverage in the high-risk account. In issuing
232	multiperil coverage, the corporation may use its approved policy
233	forms and rates for the personal lines account. An applicant or
234	insured who is eligible to purchase a multiperil policy from the
235	corporation may purchase a multiperil policy from an authorized
236	insurer without prejudice to the applicant's or insured's
237	eligibility to prospectively purchase a policy that provides
238	coverage only for the peril of wind from the corporation. An
239	applicant or insured who is eligible for a corporation policy
240	that provides coverage only for the peril of wind may elect to
241	purchase or retain such policy and also purchase or retain
242	coverage excluding wind from an authorized insurer without
243	prejudice to the applicant's or insured's eligibility to
244	prospectively purchase a policy that provides multiperil
245	coverage from the corporation. It is the goal of the Legislature
246	that there would be an overall average savings of 10 percent or
247	more for a policyholder who currently has a wind-only policy
248	with the corporation, and an ex-wind policy with a voluntary
249	insurer or the corporation, and who then obtains a multiperil
250	policy from the corporation. It is the intent of the Legislature
251	that the offer of multiperil coverage in the high-risk account
252	be made and implemented in a manner that does not adversely
253	affect the tax-exempt status of the corporation or
254	creditworthiness of or security for currently outstanding
255	financing obligations or credit facilities of the high-risk
256	account, the personal lines account, or the commercial lines
257	account. The high-risk account must also include quota share
258	primary insurance under subparagraph (c)2. The area eligible for
259	coverage under the high-risk account also includes the area
260	within Port Canaveral, which is bordered on the south by the
261	City of Cape Canaveral, bordered on the west by the Banana
262	River, and bordered on the north by Federal Government property.
263	b.  The three separate accounts must be maintained as long
264	as financing obligations entered into by the Florida Windstorm
265	Underwriting Association or Residential Property and Casualty
266	Joint Underwriting Association are outstanding, in accordance
267	with the terms of the corresponding financing documents. When
268	the financing obligations are no longer outstanding, in
269	accordance with the terms of the corresponding financing
270	documents, the corporation may use a single account for all
271	revenues, assets, liabilities, losses, and expenses of the
272	corporation. Consistent with the requirement of this
273	subparagraph and prudent investment policies that minimize the
274	cost of carrying debt, the board shall exercise its best efforts
275	to retire existing debt or to obtain approval of necessary
276	parties to amend the terms of existing debt, so as to structure
277	the most efficient plan to consolidate the three separate
278	accounts into a single account. By February 1, 2007, the board
279	shall submit a report to the Financial Services Commission, the
280	President of the Senate, and the Speaker of the House of
281	Representatives which includes an analysis of consolidating the
282	accounts, the actions the board has taken to minimize the cost
283	of carrying debt, and its recommendations for executing the most
284	efficient plan.
285	c.  Creditors of the Residential Property and Casualty
286	Joint Underwriting Association and of the accounts specified in
287	sub-sub-subparagraphs a.(I) and (II) may have a claim against,
288	and recourse to, the accounts referred to in sub-sub-
289	subparagraphs a.(I) and (II) and shall have no claim against, or
290	recourse to, the account referred to in sub-sub-subparagraph
291	a.(III). Creditors of the Florida Windstorm Underwriting
292	Association shall have a claim against, and recourse to, the
293	account referred to in sub-sub-subparagraph a.(III) and shall
294	have no claim against, or recourse to, the accounts referred to
295	in sub-sub-subparagraphs a.(I) and (II).
296	d.  Revenues, assets, liabilities, losses, and expenses not
297	attributable to particular accounts shall be prorated among the
298	accounts.
299	e.  The Legislature finds that the revenues of the
300	corporation are revenues that are necessary to meet the
301	requirements set forth in documents authorizing the issuance of
302	bonds under this subsection.
303	f.  No part of the income of the corporation may inure to
304	the benefit of any private person.
305	3.  With respect to a deficit in an account:
306	a.  After accounting for the Citizens policyholder
307	surcharge imposed under sub-subparagraph i., when the remaining
308	projected deficit incurred in a particular calendar year is not
309	greater than 6 percent of the aggregate statewide direct written
310	premium for the subject lines of business for the prior calendar
311	year, the entire deficit shall be recovered through regular
312	assessments of assessable insurers under paragraph (p) and
313	assessable insureds.
314	b.  After accounting for the Citizens policyholder
315	surcharge imposed under sub-subparagraph i., when the remaining
316	projected deficit incurred in a particular calendar year exceeds
317	6 percent of the aggregate statewide direct written premium for
318	the subject lines of business for the prior calendar year, the
319	corporation shall levy regular assessments on assessable
320	insurers under paragraph (p) and on assessable insureds in an
321	amount equal to the greater of 6 percent of the deficit or 6
322	percent of the aggregate statewide direct written premium for
323	the subject lines of business for the prior calendar year. Any
324	remaining deficit shall be recovered through emergency
325	assessments under sub-subparagraph d.
326	c.  Each assessable insurer's share of the amount being
327	assessed under sub-subparagraph a. or sub-subparagraph b. shall
328	be in the proportion that the assessable insurer's direct
329	written premium for the subject lines of business for the year
330	preceding the assessment bears to the aggregate statewide direct
331	written premium for the subject lines of business for that year.
332	The assessment percentage applicable to each assessable insured
333	is the ratio of the amount being assessed under sub-subparagraph
334	a. or sub-subparagraph b. to the aggregate statewide direct
335	written premium for the subject lines of business for the prior
336	year. For purposes of the calculation required by this sub-
337	subparagraph, the term "aggregate statewide direct written
338	premium for the subject lines of business" does not include
339	direct written premium for nonassessable property insurance
340	policies as defined in s. 627.4025. Assessments levied by the
341	corporation on assessable insurers under sub-subparagraphs a.
342	and b. shall be paid as required by the corporation's plan of
343	operation and paragraph (p). Assessments levied by the
344	corporation on assessable insureds under sub-subparagraphs a.
345	and b. shall be collected by the surplus lines agent at the time
346	the surplus lines agent collects the surplus lines tax required
347	by s. 626.932 and shall be paid to the Florida Surplus Lines
348	Service Office at the time the surplus lines agent pays the
349	surplus lines tax to the Florida Surplus Lines Service Office.
350	Upon receipt of regular assessments from surplus lines agents,
351	the Florida Surplus Lines Service Office shall transfer the
352	assessments directly to the corporation as determined by the
353	corporation.
354	d.  Upon a determination by the board of governors that a
355	deficit in an account exceeds the amount that will be recovered
356	through regular assessments under sub-subparagraph a. or sub-
357	subparagraph b., plus the amount that is expected to be
358	recovered through surcharges under sub-subparagraph i., as to
359	the remaining projected deficit the board shall levy, after
360	verification by the office, emergency assessments, for as many
361	years as necessary to cover the deficits, to be collected by
362	assessable insurers and the corporation and collected from
363	assessable insureds upon issuance or renewal of policies for
364	subject lines of business, excluding National Flood Insurance
365	policies. The amount of the emergency assessment collected in a
366	particular year shall be a uniform percentage of that year's
367	direct written premium for subject lines of business and all
368	accounts of the corporation, excluding National Flood Insurance
369	Program policy premiums, as annually determined by the board and
370	verified by the office. For purposes of the calculation required
371	by this sub-subparagraph, the term "aggregate statewide direct
372	written premium for the subject lines of business" does not
373	include direct written premium for nonassessable property
374	insurance policies as defined in s. 627.4025. The office shall
375	verify the arithmetic calculations involved in the board's
376	determination within 30 days after receipt of the information on
377	which the determination was based. Notwithstanding any other
378	provision of law, the corporation and each assessable insurer
379	that writes subject lines of business shall collect emergency
380	assessments from its policyholders without such obligation being
381	affected by any credit, limitation, exemption, or deferment.
382	Emergency assessments levied by the corporation on assessable
383	insureds shall be collected by the surplus lines agent at the
384	time the surplus lines agent collects the surplus lines tax
385	required by s. 626.932 and shall be paid to the Florida Surplus
386	Lines Service Office at the time the surplus lines agent pays
387	the surplus lines tax to the Florida Surplus Lines Service
388	Office. The emergency assessments so collected shall be
389	transferred directly to the corporation on a periodic basis as
390	determined by the corporation and shall be held by the
391	corporation solely in the applicable account. The aggregate
392	amount of emergency assessments levied for an account under this
393	sub-subparagraph in any calendar year may, at the discretion of
394	the board of governors, be less than but may not exceed the
395	greater of 10 percent of the amount needed to cover the deficit,
396	plus interest, fees, commissions, required reserves, and other
397	costs associated with financing of the original deficit, or 10
398	percent of the aggregate statewide direct written premium for
399	subject lines of business and for all accounts of the
400	corporation for the prior year, plus interest, fees,
401	commissions, required reserves, and other costs associated with
402	financing the deficit.
403	e.  The corporation may pledge the proceeds of assessments,
404	projected recoveries from the Florida Hurricane Catastrophe
405	Fund, other insurance and reinsurance recoverables, policyholder
406	surcharges and other surcharges, and other funds available to
407	the corporation as the source of revenue for and to secure bonds
408	issued under paragraph (p), bonds or other indebtedness issued
409	under subparagraph (c)3., or lines of credit or other financing
410	mechanisms issued or created under this subsection, or to retire
411	any other debt incurred as a result of deficits or events giving
412	rise to deficits, or in any other way that the board determines
413	will efficiently recover such deficits. The purpose of the lines
414	of credit or other financing mechanisms is to provide additional
415	resources to assist the corporation in covering claims and
416	expenses attributable to a catastrophe. As used in this
417	subsection, the term "assessments" includes regular assessments
418	under sub-subparagraph a., sub-subparagraph b., or subparagraph
419	(p)1. and emergency assessments under sub-subparagraph d.
420	Emergency assessments collected under sub-subparagraph d. are
421	not part of an insurer's rates, are not premium, and are not
422	subject to premium tax, fees, or commissions; however, failure
423	to pay the emergency assessment shall be treated as failure to
424	pay premium. The emergency assessments under sub-subparagraph d.
425	shall continue as long as any bonds issued or other indebtedness
426	incurred with respect to a deficit for which the assessment was
427	imposed remain outstanding, unless adequate provision has been
428	made for the payment of such bonds or other indebtedness
429	pursuant to the documents governing such bonds or other
430	indebtedness.
431	f.  As used in this subsection for purposes of any deficit
432	incurred on or after January 25, 2007, the term "subject lines
433	of business" means insurance written by assessable insurers or
434	procured by assessable insureds for all property and casualty
435	lines of business in this state, but not including workers'
436	compensation or medical malpractice and any premiums for
437	nonassessable residential property insurance as defined in s.
438	627.4025. As used in this the sub-subparagraph, except as
439	otherwise provided in this sub-subparagraph, the term "property
440	and casualty lines of business" includes all lines of business
441	identified on Form 2, Exhibit of Premiums and Losses, in the
442	annual statement required of authorized insurers by s. 624.424
443	and any rule adopted under this section, except for those lines
444	identified as accident and health insurance and except for
445	policies written under the National Flood Insurance Program or
446	the Federal Crop Insurance Program. For purposes of this sub-
447	subparagraph, the term "workers' compensation" includes both
448	workers' compensation insurance and excess workers' compensation
449	insurance.
450	g.  The Florida Surplus Lines Service Office shall
451	determine annually the aggregate statewide written premium in
452	subject lines of business procured by assessable insureds and
453	shall report that information to the corporation in a form and
454	at a time the corporation specifies to ensure that the
455	corporation can meet the requirements of this subsection and the
456	corporation's financing obligations.
457	h.  The Florida Surplus Lines Service Office shall verify
458	the proper application by surplus lines agents of assessment
459	percentages for regular assessments and emergency assessments
460	levied under this subparagraph on assessable insureds and shall
461	assist the corporation in ensuring the accurate, timely
462	collection and payment of assessments by surplus lines agents as
463	required by the corporation.
464	i.  If a deficit is incurred in any account in 2008 or
465	thereafter, the board of governors shall levy a Citizens
466	policyholder surcharge against all policyholders of the
467	corporation for a 12-month period, which shall be collected at
468	the time of issuance or renewal of a policy, as a uniform
469	percentage of the premium for the policy of up to 15 percent of
470	such premium, which funds shall be used to offset the deficit.
471	Citizens policyholder surcharges under this sub-subparagraph are
472	not considered premium and are not subject to commissions, fees,
473	or premium taxes. However, failure to pay such surcharges shall
474	be treated as failure to pay premium.
475	j.  If the amount of any assessments or surcharges
476	collected from corporation policyholders, assessable insurers or
477	their policyholders, or assessable insureds exceeds the amount
478	of the deficits, such excess amounts shall be remitted to and
479	retained by the corporation in a reserve to be used by the
480	corporation, as determined by the board of governors and
481	approved by the office, to pay claims or reduce any past,
482	present, or future plan-year deficits or to reduce outstanding
483	debt.
484	Section 4.  Subsection (1) of section 627.4025, Florida
485	Statutes, is amended to read:
486	627.4025  Residential coverage and hurricane coverage
487	defined.--
488	(1)  Residential coverage includes both personal lines
489	residential coverage, which consists of the type of coverage
490	provided by homeowner's, mobile home owner's, dwelling,
491	tenant's, condominium unit owner's, cooperative unit owner's,
492	and similar policies, and commercial lines residential coverage,
493	which consists of the type of coverage provided by condominium
494	association, cooperative association, apartment building, and
495	similar policies, including policies covering the common
496	elements of a homeowners' association. Residential coverage for
497	personal lines and commercial lines as set forth in this section
498	includes policies that provide coverage for particular perils
499	such as windstorm and hurricane or coverage for insurer
500	insolvency or deductibles. Policies providing personal lines
501	residential property insurance coverage as described in this
502	subsection consist of assessable residential property insurance
503	and nonassessable residential property insurance. As used in
504	this subsection, the term:
505	(a)  "Assessable residential property insurance" means
506	personal lines residential property insurance that is subject to
507	the rate standards set forth in s. 627.062 and deficit
508	assessments by Citizens Property Insurance Corporation under s.
509	627.351(6) or emergency assessments levied for the Florida
510	Hurricane Catastrophe Fund under s. 215.555.
511	(b)  "Nonassessable residential property insurance" means
512	personal lines residential property insurance that is not
513	subject to the rate standards set forth in s. 627.062, except as
514	provided in s. 627.062(2)(k), or deficit assessments by Citizens
515	Property Insurance Corporation under s. 627.351(6) or emergency
516	assessments levied for the Florida Hurricane Catastrophe Fund
517	under s. 215.555.
518	Section 5.  Section 627.7031, Florida Statutes, is created
519	to read:
520	627.7031  Residential property insurance.--
521	(1)  Any insurer authorized to write property insurance in
522	this state may offer nonassessable residential property
523	insurance policies as defined in s. 627.4025.
524	(2)  An owner of residential property may purchase a
525	nonassessable residential property insurance policy if such a
526	policy is offered by the insurer.
527	(3)  The application for a nonassessable residential
528	property insurance policy shall contain the following disclaimer
529	printed in at least 12-point boldfaced type:
530
531	THIS APPLICATION IS FOR A RESIDENTIAL PROPERTY POLICY THAT IS
532	SUBJECT TO LIMITED RATE REGULATION REQUIREMENTS OF FLORIDA LAW
533	AND IS NOT SUBJECT TO DEFICIT ASSESSMENTS BY CITIZENS PROPERTY
534	INSURANCE CORPORATION OR THE FLORIDA HURRICANE CATASTROPHE FUND.
535	A RESIDENTIAL PROPERTY POLICY THAT IS SUBJECT TO RATE REGULATION
536	REQUIREMENTS AND DEFICIT ASSESSMENT BY CITIZENS PROPERTY
537	INSURANCE CORPORATION AND THE FLORIDA HURRICANE CATASTROPHE FUND
538	MAY BE AVAILABLE FROM THIS INSURER OR FROM CITIZENS PROPERTY
539	INSURANCE CORPORATION. PLEASE DISCUSS YOUR POLICY OPTIONS WITH
540	YOUR INSURANCE AGENT.
541	Section 6.  This act shall take effect July 1, 2009.

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