Amendment
Bill No. CS/CS/CS/HB 1495

Amendment No. 695755

CHAMBER ACTION
Senate		House
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1	Representative Hays offered the following:
2
3	Amendment to Senate Amendment (947090) (with title
4	amendment)
5	Remove lines 5-2187 and insert:
6	Section 1.  Subsection (20) is added to section 215.47,
7	Florida Statutes, to read:
8	215.47  Investments; authorized securities; loan of
9	securities.--Subject to the limitations and conditions of the
10	State Constitution or of the trust agreement relating to a trust
11	fund, moneys available for investments under ss. 215.44-215.53
12	may be invested as follows:
13	(20)  The State Board of Administration may, consistent
14	with sound investment policy, invest in revenue bonds issued
15	pursuant to s. 215.555(6).
16	Section 2.  Paragraph (e) of subsection (2), paragraphs (b)
17	and (c) of subsection (4), paragraph (b) of subsection (5), and
18	subsection (17) of section 215.555, Florida Statutes, are
19	amended, and paragraph (f) is added to subsection (7) of that
20	section, to read:
21	215.555  Florida Hurricane Catastrophe Fund.--
22	(2)  DEFINITIONS.--As used in this section:
23	(e)  "Retention" means the amount of losses below which an
24	insurer is not entitled to reimbursement from the fund. An
25	insurer's retention shall be calculated as follows:
26	1.  The board shall calculate and report to each insurer
27	the retention multiples for that year. For the contract year
28	beginning June 1, 2005, the retention multiple shall be equal to
29	$4.5 billion divided by the total estimated reimbursement
30	premium for the contract year; for subsequent years, the
31	retention multiple shall be equal to $4.5 billion, adjusted
32	based upon the reported exposure from the prior contract year to
33	reflect the percentage growth in exposure to the fund for
34	covered policies since 2004, divided by the total estimated
35	reimbursement premium for the contract year. Total reimbursement
36	premium for purposes of the calculation under this subparagraph
37	shall be estimated using the assumption that all insurers have
38	selected the 90-percent coverage level. In 2010, the contract
39	year begins June 1 and ends December 31. In 2011 and thereafter,
40	the contract year begins January 1 and ends December 31.
41	2.  The retention multiple as determined under subparagraph
42	1. shall be adjusted to reflect the coverage level elected by
43	the insurer. For insurers electing the 90-percent coverage
44	level, the adjusted retention multiple is 100 percent of the
45	amount determined under subparagraph 1. For insurers electing
46	the 75-percent coverage level, the retention multiple is 120
47	percent of the amount determined under subparagraph 1. For
48	insurers electing the 45-percent coverage level, the adjusted
49	retention multiple is 200 percent of the amount determined under
50	subparagraph 1.
51	3.  An insurer shall determine its provisional retention by
52	multiplying its provisional reimbursement premium by the
53	applicable adjusted retention multiple and shall determine its
54	actual retention by multiplying its actual reimbursement premium
55	by the applicable adjusted retention multiple.
56	4.  For insurers who experience multiple covered events
57	causing loss during the contract year, beginning June 1, 2005,
58	each insurer's full retention shall be applied to each of the
59	covered events causing the two largest losses for that insurer.
60	For each other covered event resulting in losses, the insurer's
61	retention shall be reduced to one-third of the full retention.
62	The reimbursement contract shall provide for the reimbursement
63	of losses for each covered event based on the full retention
64	with adjustments made to reflect the reduced retentions after
65	January 1 of the contract year provided the insurer reports its
66	losses as specified in the reimbursement contract.
67	(4)  REIMBURSEMENT CONTRACTS.--
68	(b)1.  The contract shall contain a promise by the board to
69	reimburse the insurer for 45 percent, 75 percent, or 90 percent
70	of its losses from each covered event in excess of the insurer's
71	retention, plus 5 percent of the reimbursed losses to cover loss
72	adjustment expenses.
73	2.  The insurer must elect one of the percentage coverage
74	levels specified in this paragraph and may, upon renewal of a
75	reimbursement contract, elect a lower percentage coverage level
76	if no revenue bonds issued under subsection (6) after a covered
77	event are outstanding, or elect a higher percentage coverage
78	level, regardless of whether or not revenue bonds are
79	outstanding. All members of an insurer group must elect the same
80	percentage coverage level. Any joint underwriting association,
81	risk apportionment plan, or other entity created under s.
82	627.351 must elect the 90-percent coverage level.
83	3.  The contract shall provide that reimbursement amounts
84	shall not be reduced by reinsurance paid or payable to the
85	insurer from other sources.
86	4.  Notwithstanding any other provision contained in this
87	section, the board shall make available to insurers that
88	purchased coverage provided by this subparagraph in 2008 2007,
89	insurers qualifying as limited apportionment companies under s.
90	627.351(6)(c), and insurers that have been approved to
91	participate in the Insurance Capital Build-Up Incentive Program
92	pursuant to s. 215.5595 a contract or contract addendum that
93	provides an additional amount of reimbursement coverage of up to
94	$10 million. The premium to be charged for this additional
95	reimbursement coverage shall be 50 percent of the additional
96	reimbursement coverage provided, which shall include one prepaid
97	reinstatement. The minimum retention level that an eligible
98	participating insurer must retain associated with this
99	additional coverage layer is 30 percent of the insurer's surplus
100	as of December 31, 2008, for the 2009-2010 contract year; as of
101	December 31, 2009, for the contract year beginning June 1, 2010,
102	and ending December 31, 2010; and as of December 31, 2010, for
103	the 2011 contract year 2007. This coverage shall be in addition
104	to all other coverage that may be provided under this section.
105	The coverage provided by the fund under this subparagraph shall
106	be in addition to the claims-paying capacity as defined in
107	subparagraph (c)1., but only with respect to those insurers that
108	select the additional coverage option and meet the requirements
109	of this subparagraph. The claims-paying capacity with respect to
110	all other participating insurers and limited apportionment
111	companies that do not select the additional coverage option
112	shall be limited to their reimbursement premium's proportionate
113	share of the actual claims-paying capacity otherwise defined in
114	subparagraph (c)1. and as provided for under the terms of the
115	reimbursement contract. The optional coverage retention as
116	specified shall be accessed before the mandatory coverage under
117	the reimbursement contract, but once the limit of coverage
118	selected under this option is exhausted, the insurer's retention
119	under the mandatory coverage shall apply. This coverage shall
120	apply and be paid concurrently with the mandatory coverage.
121	Coverage provided in the reimbursement contract shall not be
122	affected by the additional premiums paid by participating
123	insurers exercising the additional coverage option allowed in
124	this subparagraph. This subparagraph expires on December May 31,
125	2011 2009.
126	(c)1.  The contract shall also provide that the obligation
127	of the board with respect to all contracts covering a particular
128	contract year shall not exceed the actual claims-paying capacity
129	of the fund up to a limit of $15 billion for that contract year
130	adjusted based upon the reported exposure from the prior
131	contract year to reflect the percentage growth in exposure to
132	the fund for covered policies since 2003, provided the dollar
133	growth in the limit may not increase in any year by an amount
134	greater than the dollar growth of the balance of the fund as of
135	December 31, less any premiums or interest attributable to
136	optional coverage, as defined by rule which occurred over the
137	prior calendar year.
138	2.  In May before the start of the upcoming contract year
139	and in October of during the contract year, the board shall
140	publish in the Florida Administrative Weekly a statement of the
141	fund's estimated borrowing capacity, the fund's estimated
142	claims-paying capacity, and the projected balance of the fund as
143	of December 31. After the end of each calendar year, the board
144	shall notify insurers of the estimated borrowing capacity, the
145	estimated claims-paying capacity, and the balance of the fund as
146	of December 31 to provide insurers with data necessary to assist
147	them in determining their retention and projected payout from
148	the fund for loss reimbursement purposes. In conjunction with
149	the development of the premium formula, as provided for in
150	subsection (5), the board shall publish factors or multiples
151	that assist insurers in determining their retention and
152	projected payout for the next contract year. For all regulatory
153	and reinsurance purposes, an insurer may calculate its projected
154	payout from the fund as its share of the total fund premium for
155	the current contract year multiplied by the sum of the projected
156	balance of the fund as of December 31 and the estimated
157	borrowing capacity for that contract year as reported under this
158	subparagraph.
159	(5)  REIMBURSEMENT PREMIUMS.--
160	(b)  The State Board of Administration shall select an
161	independent consultant to develop a formula for determining the
162	actuarially indicated premium to be paid to the fund. The
163	formula shall specify, for each zip code or other limited
164	geographical area, the amount of premium to be paid by an
165	insurer for each $1,000 of insured value under covered policies
166	in that zip code or other area. In establishing premiums, the
167	board shall consider the coverage elected under paragraph (4)(b)
168	and any factors that tend to enhance the actuarial
169	sophistication of ratemaking for the fund, including
170	deductibles, type of construction, type of coverage provided,
171	relative concentration of risks, and other such factors deemed
172	by the board to be appropriate. The formula must provide for a
173	cash build-up factor. For the contract year 2009-2010, the
174	factor is 5 percent; for the contract year beginning June 1,
175	2010, and ending December 31, 2010, the factor is 10 percent;
176	for the 2011 contract year, the factor is 15 percent; for the
177	2012 contract year, the factor is 20 percent; and for the 2013
178	contract year and thereafter, the factor is 25 percent. The
179	formula may provide for a procedure to determine the premiums to
180	be paid by new insurers that begin writing covered policies
181	after the beginning of a contract year, taking into
182	consideration when the insurer starts writing covered policies,
183	the potential exposure of the insurer, the potential exposure of
184	the fund, the administrative costs to the insurer and to the
185	fund, and any other factors deemed appropriate by the board. The
186	formula must be approved by unanimous vote of the board. The
187	board may, at any time, revise the formula pursuant to the
188	procedure provided in this paragraph.
189	(7)  ADDITIONAL POWERS AND DUTIES.--
190	(f)  The board may require insurers to notarize documents
191	submitted to the board.
192	(17)  TEMPORARY INCREASE IN COVERAGE LIMIT OPTIONS.--
193	(a)  Findings and intent.--
194	1.  The Legislature finds that:
195	a.  Because of temporary disruptions in the market for
196	catastrophic reinsurance, many property insurers were unable to
197	procure sufficient amounts of reinsurance for the 2006 hurricane
198	season or were able to procure such reinsurance only by
199	incurring substantially higher costs than in prior years.
200	b.  The reinsurance market problems were responsible, at
201	least in part, for substantial premium increases to many
202	consumers and increases in the number of policies issued by
203	Citizens Property Insurance Corporation.
204	c.  It is likely that the reinsurance market disruptions
205	will not significantly abate prior to the 2007 hurricane season.
206	2.  It is the intent of the Legislature to create options
207	for insurers to purchase a temporary increased coverage limit
208	above the statutorily determined limit in subparagraph (4)(c)1.,
209	applicable for the 2007, 2008, and 2009, 2010, 2011, 2012, and
210	2013 hurricane seasons, to address market disruptions and enable
211	insurers, at their option, to procure additional coverage from
212	the Florida Hurricane Catastrophe Fund.
213	(b)  Applicability of other provisions of this
214	section.--All provisions of this section and the rules adopted
215	under this section apply to the coverage created by this
216	subsection unless specifically superseded by provisions in this
217	subsection.
218	(c)  Optional coverage.--For the contract year commencing
219	June 1, 2007, and ending May 31, 2008, the contract year
220	commencing June 1, 2008, and ending May 31, 2009, and the
221	contract year commencing June 1, 2009, and ending May 31, 2010,
222	the contract year commencing June 1, 2010, and ending December
223	31, 2010, the contract year commencing January 1, 2011, and
224	ending December 31, 2011, the contract year commencing January
225	1, 2012, and ending December 31, 2012, and the contract year
226	commencing January 1, 2013, and ending December 31, 2013, the
227	board shall offer, for each of such years, the optional coverage
228	as provided in this subsection.
229	(d)  Additional definitions.--As used in this subsection,
230	the term:
231	1.  "FHCF" means Florida Hurricane Catastrophe Fund.
232	2.  "FHCF reimbursement premium" means the premium paid by
233	an insurer for its coverage as a mandatory participant in the
234	FHCF, but does not include additional premiums for optional
235	coverages.
236	3.  "Payout multiple" means the number or multiple created
237	by dividing the statutorily defined claims-paying capacity as
238	determined in subparagraph (4)(c)1. by the aggregate
239	reimbursement premiums paid by all insurers estimated or
240	projected as of calendar year-end.
241	4.  "TICL" means the temporary increase in coverage limit.
242	5.  "TICL options" means the temporary increase in coverage
243	options created under this subsection.
244	6.  "TICL insurer" means an insurer that has opted to
245	obtain coverage under the TICL options addendum in addition to
246	the coverage provided to the insurer under its FHCF
247	reimbursement contract, but does not include Citizens Property
248	Insurance Corporation.
249	7.  "TICL reimbursement premium" means the premium charged
250	by the fund for coverage provided under the TICL option.
251	8.  "TICL coverage multiple" means the coverage multiple
252	when multiplied by an insurer's reimbursement premium that
253	defines the temporary increase in coverage limit.
254	9.  "TICL coverage" means the coverage for an insurer's
255	losses above the insurer's statutorily determined claims-paying
256	capacity based on the claims-paying limit in subparagraph
257	(4)(c)1., which an insurer selects as its temporary increase in
258	coverage from the fund under the TICL options selected. A TICL
259	insurer's increased coverage limit options shall be calculated
260	as follows:
261	a.  The board shall calculate and report to each TICL
262	insurer the TICL coverage multiples based on 12 options for
263	increasing the insurer's FHCF coverage limit. Each TICL coverage
264	multiple shall be calculated by dividing $1 billion, $2 billion,
265	$3 billion, $4 billion, $5 billion, $6 billion, $7 billion, $8
266	billion, $9 billion, $10 billion, $11 billion, or $12 billion by
267	the total estimated aggregate FHCF reimbursement premiums for
268	the 2007-2008 contract year and, the 2008-2009 contract year,
269	and the 2009-2010 contract year.
270	b.  For the 2009-2010 contract year, the board shall
271	calculate and report to each TICL insurer the TICL coverage
272	multiples based on 10 options for increasing the insurer's FHCF
273	coverage limit. Each TICL coverage multiple shall be calculated
274	by dividing $1 billion, $2 billion, $3 billion, $4 billion, $5
275	billion, $6 billion, $7 billion, $8 billion, $9 billion, and $10
276	billion by the total estimated aggregate FHCF reimbursement
277	premiums for the 2009-2010 contract year.
278	c.  For the contract year beginning June 1, 2010, and
279	ending December 31, 2010, the board shall calculate and report
280	to each TICL insurer the TICL coverage multiples based on eight
281	options for increasing the insurer's FHCF coverage limit. Each
282	TICL coverage multiple shall be calculated by dividing $1
283	billion, $2 billion, $3 billion, $4 billion, $5 billion, $6
284	billion, $7 billion, and $8 billion by the total estimated
285	aggregate FHCF reimbursement premiums for the contract year.
286	d.  For the 2011 contract year, the board shall calculate
287	and report to each TICL insurer the TICL coverage multiples
288	based on six options for increasing the insurer's FHCF coverage
289	limit. Each TICL coverage multiple shall be calculated by
290	dividing $1 billion, $2 billion, $3 billion, $4 billion, $5
291	billion, and $6 billion by the total estimated aggregate FHCF
292	reimbursement premiums for the 2011 contract year.
293	e.  For the 2012 contract year, the board shall calculate
294	and report to each TICL insurer the TICL coverage multiples
295	based on four options for increasing the insurer's FHCF coverage
296	limit. Each TICL coverage multiple shall be calculated by
297	dividing $1 billion, $2 billion, $3 billion, and $4 billion by
298	the total estimated aggregate FHCF reimbursement premiums for
299	the 2012 contract year.
300	f.  For the 2013 contract year, the board shall calculate
301	and report to each TICL insurer the TICL coverage multiples
302	based on two options for increasing the insurer's FHCF coverage
303	limit. Each TICL coverage multiple shall be calculated by
304	dividing $1 billion and $2 billion by the total estimated
305	aggregate FHCF reimbursement premiums for the 2013 contract
306	year.
307	g.b.  The TICL insurer's increased coverage shall be the
308	FHCF reimbursement premium multiplied by the TICL coverage
309	multiple. In order to determine an insurer's total limit of
310	coverage, an insurer shall add its TICL coverage multiple to its
311	payout multiple. The total shall represent a number that, when
312	multiplied by an insurer's FHCF reimbursement premium for a
313	given reimbursement contract year, defines an insurer's total
314	limit of FHCF reimbursement coverage for that reimbursement
315	contract year.
316	10.  "TICL options addendum" means an addendum to the
317	reimbursement contract reflecting the obligations of the fund
318	and insurers selecting an option to increase an insurer's FHCF
319	coverage limit.
320	(e)  TICL options addendum.--
321	1.  The TICL options addendum shall provide for
322	reimbursement of TICL insurers for covered events occurring
323	between June 1, 2007, and May 31, 2008, and between June 1,
324	2008, and May 31, 2009, or between June 1, 2009, and May 31,
325	2010, between June 1, 2010, and December 31, 2010, between
326	January 1, 2011, and December 31, 2011, between January 1, 2012,
327	and December 31, 2012, or between January 1, 2013, and December
328	31, 2013, in exchange for the TICL reimbursement premium paid
329	into the fund under paragraph (f). Any insurer writing covered
330	policies has the option of selecting an increased limit of
331	coverage under the TICL options addendum and shall select such
332	coverage at the time that it executes the FHCF reimbursement
333	contract.
334	2.a.  The TICL addendum for the contract year commencing
335	June 1, 2007, and ending May 31, 2008, or the contract year
336	commencing June 1, 2008, and ending May 31, 2009, shall contain
337	a promise by the board to reimburse the TICL insurer for 45
338	percent, 75 percent, or 90 percent of its losses from each
339	covered event in excess of the insurer's retention, plus 5
340	percent of the reimbursed losses to cover loss adjustment
341	expenses. The percentage shall be the same as the coverage level
342	selected by the insurer under paragraph (4)(b).
343	b.  The TICL addendum for the contract year commencing June
344	1, 2009, and ending May 31, 2010, shall contain a promise by the
345	board to reimburse the TICL insurer for 45 percent or 75 percent
346	of its losses from each covered event in excess of the insurer's
347	retention, plus 5 percent of the reimbursed losses to cover loss
348	adjustment expenses.
349	c.  The TICL addendum for the contract year commencing June
350	1, 2010, and ending December 31, 2010, shall contain a promise
351	by the board to reimburse the TICL insurer for 45 percent or 65
352	percent of its losses from each covered event in excess of the
353	insurer's retention, plus 5 percent of the reimbursed losses to
354	cover loss adjustment expenses.
355	d.  The TICL addendum for the contract year commencing
356	January 1, 2011, and ending December 31, 2011, shall contain a
357	promise by the board to reimburse the TICL insurer for 45
358	percent or 55 percent of its losses from each covered event in
359	excess of the insurer's retention, plus 5 percent of the
360	reimbursed losses to cover loss adjustment expenses.
361	e.  The TICL addendum for the contract year commencing
362	January 1, 2012, and ending December 31, 2012, shall contain a
363	promise by the board to reimburse the TICL insurer for 45
364	percent of its losses from each covered event in excess of the
365	insurer's retention, plus 5 percent of the reimbursed losses to
366	cover loss adjustment expenses.
367	f.  The TICL addendum for the contract year commencing
368	January 1, 2013, and ending December 31, 2013, shall contain a
369	promise by the board to reimburse the TICL insurer for 30
370	percent of its losses from each covered event in excess of the
371	insurer's retention, plus 5 percent of the reimbursed losses to
372	cover loss adjustment expenses.
373	3.  The TICL addendum shall provide that reimbursement
374	amounts shall not be reduced by reinsurance paid or payable to
375	the insurer from other sources.
376	4.  The priorities, schedule, and method of reimbursements
377	under the TICL addendum shall be the same as provided under
378	subsection (4).
379	(f)  TICL reimbursement premiums.--Each TICL insurer shall
380	pay to the fund, in the manner and at the time provided in the
381	reimbursement contract for payment of reimbursement premiums, a
382	TICL reimbursement premium determined as specified in subsection
383	(5), except that a cash build-up factor does not apply to the
384	TICL reimbursement premiums. However, the TICL reimbursement
385	premium shall be increased in contract year 2009-2010 by a
386	factor of two, in the contract year beginning June 1, 2010, and
387	ending December 31, 2010, by a factor of three, in the 2011
388	contract year by a factor of four, in the 2012 contract year by
389	a factor of five, and in the 2013 contract year by a factor of
390	six.
391	(g)  Effect on claims-paying capacity of the fund.--For the
392	contract terms commencing June 1, 2007, June 1, 2008, and June
393	1, 2009, June 1, 2010, January 1, 2011, January 1, 2012, and
394	January 1, 2013, the program created by this subsection shall
395	increase the claims-paying capacity of the fund as provided in
396	subparagraph (4)(c)1. by an amount not to exceed $12 billion and
397	shall depend on the TICL coverage options selected and the
398	number of insurers that select the TICL optional coverage. The
399	additional capacity shall apply only to the additional coverage
400	provided under the TICL options and shall not otherwise affect
401	any insurer's reimbursement from the fund if the insurer chooses
402	not to select the temporary option to increase its limit of
403	coverage under the FHCF.
404	(h)  Increasing the claims-paying capacity of the
405	fund.--For the contract years commencing June 1, 2007, June 1,
406	2008, and June 1, 2009, the board may increase the claims-paying
407	capacity of the fund as provided in paragraph (g) by an amount
408	not to exceed $4 billion in four $1 billion options and shall
409	depend on the TICL coverage options selected and the number of
410	insurers that select the TICL optional coverage. Each insurer's
411	TICL premium shall be calculated based upon the additional limit
412	of increased coverage that the insurer selects. Such limit is
413	determined by multiplying the TICL multiple associated with one
414	of the four options times the insurer's FHCF reimbursement
415	premium. The reimbursement premium associated with the
416	additional coverage provided in this paragraph shall be
417	determined as specified in subsection (5).
418	Section 3.  Section 215.5586, Florida Statutes, as amended
419	by section 1 of chapter 2009-10, Laws of Florida, is amended to
420	read:
421	215.5586  My Safe Florida Home Program.--There is
422	established within the Department of Financial Services the My
423	Safe Florida Home Program. The department shall provide fiscal
424	accountability, contract management, and strategic leadership
425	for the program, consistent with this section. This section does
426	not create an entitlement for property owners or obligate the
427	state in any way to fund the inspection or retrofitting of
428	residential property in this state. Implementation of this
429	program is subject to annual legislative appropriations. It is
430	the intent of the Legislature that the My Safe Florida Home
431	Program provide trained and certified inspectors to perform
432	inspections for owners of for at least 400,000 site-built,
433	single-family, residential properties and provide grants to
434	eligible at least 35,000 applicants as funding allows before
435	June 30, 2009. The program shall develop and implement a
436	comprehensive and coordinated approach for hurricane damage
437	mitigation that may shall include the following:
438	(1)  HURRICANE MITIGATION INSPECTIONS.--
439	(a)  Certified inspectors to provide free home-retrofit
440	inspections of site-built, single-family, residential property
441	may shall be offered throughout the state to determine what
442	mitigation measures are needed, what insurance premium discounts
443	may be available, and what improvements to existing residential
444	properties are needed to reduce the property's vulnerability to
445	hurricane damage. The Department of Financial Services shall
446	contract with wind certification entities to provide free
447	hurricane mitigation inspections. The inspections provided to
448	homeowners, at a minimum, must include:
449	1.  A home inspection and report that summarizes the
450	results and identifies recommended improvements a homeowner may
451	take to mitigate hurricane damage.
452	2.  A range of cost estimates regarding the recommended
453	mitigation improvements.
454	3.  Insurer-specific information regarding premium
455	discounts correlated to the current mitigation features and the
456	recommended mitigation improvements identified by the
457	inspection.
458	4.  A hurricane resistance rating scale specifying the
459	home's current as well as projected wind resistance
460	capabilities. As soon as practical, the rating scale must be the
461	uniform home grading scale adopted by the Financial Services
462	Commission pursuant to s. 215.55865.
463	(b)  To qualify for selection by the department as a wind
464	certification entity to provide hurricane mitigation
465	inspections, the entity shall, at a minimum, meet the following
466	requirements:
467	1.  Use hurricane mitigation inspectors who:
468	a.  Are certified as a building inspector under s. 468.607;
469	b.  Are licensed as a general or residential contractor
470	under s. 489.111;
471	c.  Are licensed as a professional engineer under s.
472	471.015 and who have passed the appropriate equivalency test of
473	the Building Code Training Program as required by s. 553.841;
474	d.  Are licensed as a professional architect under s.
475	481.213; or
476	e.  Have at least 2 years of experience in residential
477	construction or residential building inspection and have
478	received specialized training in hurricane mitigation
479	procedures. Such training may be provided by a class offered
480	online or in person.
481	2.  Use hurricane mitigation inspectors who also:
482	a.  Have undergone drug testing and level 2 background
483	checks pursuant to s. 435.04. The department may conduct
484	criminal record checks of inspectors used by wind certification
485	entities. Inspectors must submit a set of the fingerprints to
486	the department for state and national criminal history checks
487	and must pay the fingerprint processing fee set forth in s.
488	624.501. The fingerprints shall be sent by the department to the
489	Department of Law Enforcement and forwarded to the Federal
490	Bureau of Investigation for processing. The results shall be
491	returned to the department for screening. The fingerprints shall
492	be taken by a law enforcement agency, designated examination
493	center, or other department-approved entity; and
494	b.  Have been certified, in a manner satisfactory to the
495	department, to conduct the inspections.
496	3.  Provide a quality assurance program including a
497	reinspection component.
498	(c)  The department shall implement a quality assurance
499	program that includes a statistically valid number of
500	reinspections.
501	(d)  An application for an inspection must contain a signed
502	or electronically verified statement made under penalty of
503	perjury that the applicant has submitted only a single
504	application for that home.
505	(e)  The owner of a site-built, single-family, residential
506	property may apply for and receive an inspection without also
507	applying for a grant pursuant to subsection (2) and without
508	meeting the requirements of paragraph (2)(a).
509	(2)  MITIGATION GRANTS.--Financial grants shall be used to
510	encourage single-family, site-built, owner-occupied, residential
511	property owners to retrofit their properties to make them less
512	vulnerable to hurricane damage.
513	(a)  For a homeowner to be eligible for a grant, the
514	following criteria for persons who have obtained a completed
515	inspection after May 1, 2007, a residential property must be
516	met:
517	1.  The homeowner must have been granted a homestead
518	exemption on the home under chapter 196.
519	2.  The home must be a dwelling with an insured value of
520	$300,000 or less. Homeowners who are low-income persons, as
521	defined in s. 420.0004(10), are exempt from this requirement.
522	3.  The home must have undergone an acceptable hurricane
523	mitigation inspection after May 1, 2007.
524	4.  The home must be located in the "wind-borne debris
525	region" as that term is defined in s. 1609.2, International
526	Building Code (2006), or as subsequently amended.
527	5.  Be a home for which The building permit application for
528	initial construction of the home must have been was made before
529	March 1, 2002.
530
531	An application for a grant must contain a signed or
532	electronically verified statement made under penalty of perjury
533	that the applicant has submitted only a single application and
534	must have attached documents demonstrating the applicant meets
535	the requirements of this paragraph.
536	(b)  All grants must be matched on a dollar-for-dollar
537	basis up to for a total of $10,000 for the actual cost of the
538	mitigation project with the state's contribution not to exceed
539	$5,000.
540	(c)  The program shall create a process in which
541	contractors agree to participate and homeowners select from a
542	list of participating contractors. All mitigation must be based
543	upon the securing of all required local permits and inspections
544	and must be performed by properly licensed contractors.
545	Mitigation projects are subject to random reinspection of up to
546	at least 5 percent of all projects. Hurricane mitigation
547	inspectors qualifying for the program may also participate as
548	mitigation contractors as long as the inspectors meet the
549	department's qualifications and certification requirements for
550	mitigation contractors.
551	(d)  Matching fund grants shall also be made available to
552	local governments and nonprofit entities for projects that will
553	reduce hurricane damage to single-family, site-built, owner-
554	occupied, residential property. The department shall liberally
555	construe those requirements in favor of availing the state of
556	the opportunity to leverage funding for the My Safe Florida Home
557	Program with other sources of funding.
558	(e)  When recommended by a hurricane mitigation inspection,
559	grants may be used for the following improvements only:
560	1.  Opening protection.
561	2.  Exterior doors, including garage doors.
562	3.  Brace gable ends.
563	4.  Reinforcing roof-to-wall connections.
564	5.  Improving the strength of roof-deck attachments.
565	6.  Upgrading roof covering from code to code plus.
566	7.  Secondary water barrier for roof.
567
568	The department may require that improvements be made to all
569	openings, including exterior doors and garage doors, as a
570	condition of reimbursing a homeowner approved for a grant.
571	(f)  Grants may be used on a previously inspected existing
572	structure or on a rebuild. A rebuild is defined as a site-built,
573	single-family dwelling under construction to replace a home that
574	was destroyed or significantly damaged by a hurricane and deemed
575	unlivable by a regulatory authority. The homeowner must be a
576	low-income homeowner as defined in paragraph (g), must have had
577	a homestead exemption for that home prior to the hurricane, and
578	must be intending to rebuild the home as that homeowner's
579	homestead.
580	(g)  Low-income homeowners, as defined in s. 420.0004(10),
581	who otherwise meet the requirements of paragraphs (a), (c), (e),
582	and (f) are eligible for a grant of up to $5,000 and are not
583	required to provide a matching amount to receive the grant.
584	Additionally, for low-income homeowners, grant funding may be
585	used for repair to existing structures leading to any of the
586	mitigation improvements provided in paragraph (e), limited to 20
587	percent of the grant value. The program may accept a
588	certification directly from a low-income homeowner that the
589	homeowner meets the requirements of s. 420.0004(10) if the
590	homeowner provides such certification in a signed or
591	electronically verified statement made under penalty of perjury.
592	(h)  The department shall establish objective, reasonable
593	criteria for prioritizing grant applications, consistent with
594	the requirements of this section.
595	(i)  The department shall develop a process that ensures
596	the most efficient means to collect and verify grant
597	applications to determine eligibility and may direct hurricane
598	mitigation inspectors to collect and verify grant application
599	information or use the Internet or other electronic means to
600	collect information and determine eligibility.
601	(3)  EDUCATION AND CONSUMER AWARENESS.--The department may
602	undertake a statewide multimedia public outreach and advertising
603	campaign to inform consumers of the availability and benefits of
604	hurricane inspections and of the safety and financial benefits
605	of residential hurricane damage mitigation. The department may
606	seek out and use local, state, federal, and private funds to
607	support the campaign.
608	(4)  ADVISORY COUNCIL.--There is created an advisory
609	council to provide advice and assistance to the department
610	regarding administration of the program. The advisory council
611	shall consist of:
612	(a)  A representative of lending institutions, selected by
613	the Financial Services Commission from a list of at least three
614	persons recommended by the Florida Bankers Association.
615	(b)  A representative of residential property insurers,
616	selected by the Financial Services Commission from a list of at
617	least three persons recommended by the Florida Insurance
618	Council.
619	(c)  A representative of home builders, selected by the
620	Financial Services Commission from a list of at least three
621	persons recommended by the Florida Home Builders Association.
622	(d)  A faculty member of a state university, selected by
623	the Financial Services Commission, who is an expert in
624	hurricane-resistant construction methodologies and materials.
625	(e)  Two members of the House of Representatives, selected
626	by the Speaker of the House of Representatives.
627	(f)  Two members of the Senate, selected by the President
628	of the Senate.
629	(g)  The Chief Executive Officer of the Federal Alliance
630	for Safe Homes, Inc., or his or her designee.
631	(h)  The senior officer of the Florida Hurricane
632	Catastrophe Fund.
633	(i)  The executive director of Citizens Property Insurance
634	Corporation.
635	(j)  The director of the Division of Emergency Management
636	of the Department of Community Affairs.
637
638	Members appointed under paragraphs (a)-(d) shall serve at the
639	pleasure of the Financial Services Commission. Members appointed
640	under paragraphs (e) and (f) shall serve at the pleasure of the
641	appointing officer. All other members shall serve as voting ex
642	officio members. Members of the advisory council shall serve
643	without compensation but may receive reimbursement as provided
644	in s. 112.061 for per diem and travel expenses incurred in the
645	performance of their official duties.
646	(5)  FUNDING.--The department may seek out and leverage
647	local, state, federal, or private funds to enhance the financial
648	resources of the program.
649	(6)  RULES.--The Department of Financial Services shall
650	adopt rules pursuant to ss. 120.536(1) and 120.54 to govern the
651	program; implement the provisions of this section; including
652	rules governing hurricane mitigation inspections and grants,
653	mitigation contractors, and training of inspectors and
654	contractors; and carry out the duties of the department under
655	this section.
656	(7)  HURRICANE MITIGATION INSPECTOR LIST.--The department
657	shall develop and maintain as a public record a current list of
658	hurricane mitigation inspectors authorized to conduct hurricane
659	mitigation inspections pursuant to this section.
660	(8)  NO-INTEREST LOANS.--The department shall implement a
661	no-interest loan program by October 1, 2008, contingent upon the
662	selection of a qualified vendor and execution of a contract
663	acceptable to the department and the vendor. The department
664	shall enter into partnerships with the private sector to provide
665	loans to owners of site-built, single-family, residential
666	property to pay for mitigation measures listed in subsection
667	(2). A loan eligible for interest payments pursuant to this
668	subsection may be for a term of up to 3 years and cover up to
669	$5,000 in mitigation measures. The department shall pay the
670	creditor the market rate of interest using funds appropriated
671	for the My Safe Florida Home Program. In no case shall the
672	department pay more than the interest rate set by s. 687.03. To
673	be eligible for a loan, a loan applicant must first obtain a
674	home inspection and report that specifies what improvements are
675	needed to reduce the property's vulnerability to windstorm
676	damage pursuant to this section and meet loan underwriting
677	requirements set by the lender. The department may adopt rules
678	pursuant to ss. 120.536(1) and 120.54 to implement this
679	subsection which may include eligibility criteria.
680	(8)(9)  PUBLIC OUTREACH FOR CONTRACTORS AND REAL ESTATE
681	BROKERS AND SALES ASSOCIATES.--The program shall develop
682	brochures for distribution to general contractors, roofing
683	contractors, and real estate brokers and sales associates
684	licensed under part I of chapter 475 explaining the benefits to
685	homeowners of residential hurricane damage mitigation. The
686	program shall encourage contractors to distribute the brochures
687	to homeowners at the first meeting with a homeowner who is
688	considering contracting for home or roof repairs or contracting
689	for the construction of a new home. The program shall encourage
690	real estate brokers and sales associates licensed under part I
691	of chapter 475 to distribute the brochures to clients prior to
692	the purchase of a home. The brochures may be made available
693	electronically.
694	(9)(10)  CONTRACT MANAGEMENT.--The department may contract
695	with third parties for grants management, inspection services,
696	contractor services for low-income homeowners, information
697	technology, educational outreach, and auditing services. Such
698	contracts shall be considered direct costs of the program and
699	shall not be subject to administrative cost limits, but
700	contracts valued at $1 million $500,000 or more shall be subject
701	to review and approval by the Legislative Budget Commission. The
702	department shall contract with providers that have a
703	demonstrated record of successful business operations in areas
704	directly related to the services to be provided and shall ensure
705	the highest accountability for use of state funds, consistent
706	with this section.
707	(10)(11)  INTENT.--It is the intent of the Legislature that
708	grants made to residential property owners under this section
709	shall be considered disaster-relief assistance within the
710	meaning of s. 139 of the Internal Revenue Code of 1986, as
711	amended.
712	(11)(12)  REPORTS.--The department shall make an annual
713	report on the activities of the program that shall account for
714	the use of state funds and indicate the number of inspections
715	requested, the number of inspections performed, the number of
716	grant applications received, and the number and value of grants
717	approved. The report shall be delivered to the President of the
718	Senate and the Speaker of the House of Representatives by
719	February 1 of each year.
720	(12)  CONDOMINIUM WEATHERIZATION AND MITIGATION LOAN
721	PROGRAM.--
722	(a)  Subject to a specific appropriation by the Legislature
723	from funds received pursuant to the American Recovery and
724	Reinvestment Act of 2009, Pub. L. No. 111-5, specifically for
725	the purpose of condominium weatherization, the department shall
726	implement a condominium weatherization and mitigation loan
727	program to assist condominium unit owners in weatherizing their
728	condominium units and mitigating all such units against wind
729	damage. The program shall have the following minimum
730	requirements:
731	1.  The department shall contract with lenders to offer
732	weatherization and hurricane mitigation loan subsidies equal to
733	a competitive rate of interest on a loan balance of up to $5,000
734	per condominium unit for 3 years. The interest subsidy may be
735	paid in advance by the department to a lender participating in
736	the program.
737	2.  The loans must be used to purchase or install
738	weatherization measures and hurricane mitigation measures
739	identified in paragraph (2)(e) that comply with the requirements
740	of part A, Title IV of the Energy Conservation and Production
741	Act, 42 U.S.C. ss. 6861 et seq., as amended by the American
742	Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5, as
743	determined by the department.
744	3.  A participating condominium association must agree to
745	purchase and install weatherization and mitigation measures for
746	each unit in the condominium that lacks the weatherization and
747	mitigation measures.
748	4.  To be eligible, a condominium must have been permitted
749	for construction on or before March 1, 2002, be located in the
750	wind-borne debris region.
751	5.  Condominiums of more than 200 units are not eligible
752	for the loan program.
753	6.  The department may contract with third parties for
754	auditing and related services to ensure accountability and
755	program quality.
756	(b)  The loan program shall be administered on a first-
757	come, first-served basis.
758	(c)  The department shall adopt rules pursuant to ss.
759	120.536(1) and 120.54 to implement the loan program.
760	Section 4.  Subsections (5) and (6) are added to section
761	624.4622, Florida Statutes, to read:
762	624.4622  Local government self-insurance funds.--
763	(5)  A local government self-insurance fund may not require
764	its members to provide more than 30 days' notice of the member's
765	intention to withdraw from the self-insurance fund as a
766	prerequisite for withdrawing from the self-insurance fund.
767	(6)(a)  Each local government self-insurance fund shall
768	submit annually to the office, to the governing body of each
769	member participant, and to the governing board of each new
770	member before the inception of the policy an affidavit stating
771	whether an officer or owner of or the manager or administrator
772	of a local government self-insurance fund has ever:
773	1.  Been charged with, or indicted for, any criminal
774	offense other than a motor vehicle offense;
775	2.  Pled guilty or nolo contendere to, or been convicted
776	of, any criminal offense other than a motor vehicle offense;
777	3.  Had adjudication of guilt withheld, had a sentence
778	imposed or suspended, had a pronouncement of a sentence
779	suspended, or been pardoned, fined, or placed on probation for
780	any criminal offense other than a motor vehicle offense; or
781	4  Been, within the last 10 years, found liable in any
782	civil action involving dishonesty or a breach of trust.
783	(b)  If the record has been sealed or expunged and the
784	respondent has personally verified that the record was sealed or
785	expunged, a respondent may respond "no" to the question.
786	Section 5.  Paragraph (r) of subsection (1) of section
787	624.605, Florida Statutes, is amended to read:
788	624.605  "Casualty insurance" defined.--
789	(1)  "Casualty insurance" includes:
790	(r)  Insurance for debt cancellation products.--Insurance
791	that a creditor may purchase against the risk of financial loss
792	from the use of debt cancellation products with consumer loans
793	or leases or retail installment contracts. Insurance for debt
794	cancellation products is not liability insurance but shall be
795	considered credit insurance only for the purposes of s.
796	631.52(4).
797	1.  For purposes of this paragraph, the term "debt
798	cancellation products" means loan, lease, or retail installment
799	contract terms, or modifications to loan, lease, or retail
800	installment contracts, under which a creditor agrees to cancel
801	or suspend all or part of a customer's obligation to make
802	payments upon the occurrence of specified events and includes,
803	but is not limited to, debt cancellation contracts, debt
804	suspension agreements, and guaranteed asset protection
805	contracts. However, the term "debt cancellation products" does
806	not include title insurance as defined in s. 624.608.
807	2.  Debt cancellation products may be offered by financial
808	institutions, as defined in s. 655.005(1)(h), insured depository
809	institutions, as defined in 12 U.S.C. s. 1813(c), and
810	subsidiaries of such institutions, as provided in the financial
811	institutions codes, or by other business entities selling or
812	leasing a product that may be goods, services, or real property
813	and interests in real property, the sale or lease of which
814	product is regulated by an agency of the state and when the
815	extension of credit is offered in connection with the purchase
816	or lease of such product. as may be specifically authorized by
817	law, and Such debt cancellation products shall not constitute
818	insurance for purposes of the Florida Insurance Code.
819	Section 6.  Subsection (3) of section 626.753, Florida
820	Statutes, is amended to read:
821	626.753  Sharing commissions; penalty.--
822	(3)(a)  A general lines agent may share commissions derived
823	from the sale of crop hail or multiple-peril crop insurance with
824	a production credit association organized under 12 U.S.C. ss.
825	2071-2077 12 U.S.C.A. ss. 2071-2077 or a federal land bank
826	association organized under 12 U.S.C. ss. 2091-2098 U.S.C.A. ss.
827	2091-2098 if the association has specifically approved the
828	insurance activity by its employees. The amount of commission to
829	be shared shall be determined by the general lines agent and the
830	company paying the commission.
831	(b)  This subsection does not allow such shared commissions
832	to be used, directly or indirectly, for the purpose of providing
833	any patronage dividend or other payment, discount, or credit to
834	a member of a production credit association or federal land bank
835	association if the dividend, payment, discount, or credit is
836	directly or indirectly calculated on the basis of the premium
837	charged to that member for crop hail or multiple-peril crop
838	insurance.
839	(c)  Any patronage dividend or other payment, discount, or
840	credit provided to a member of a production credit association
841	or federal land bank association, which dividend, payment,
842	discount, or credit is directly or indirectly calculated on the
843	basis of the premium charged to that member for crop hail or
844	multiple-peril crop insurance, is an unlawful rebate that
845	violates ss. 626.572 and 626.9541(1)(h).
846	(d)  An agent violates this section if he or she knowingly
847	engages in commission sharing with a production credit
848	association or federal land bank association that provides
849	patronage dividends or other payments, discounts, or credits
850	which are unlawful rebates under paragraph (c).
851	Section 7.  Paragraph (h) of subsection (1) of section
852	626.9541, Florida Statutes, is amended to read:
853	626.9541  Unfair methods of competition and unfair or
854	deceptive acts or practices defined.--
855	(1)  UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
856	ACTS.--The following are defined as unfair methods of
857	competition and unfair or deceptive acts or practices:
858	(h)  Unlawful rebates.--
859	1.  Except as otherwise expressly provided by law, or in an
860	applicable filing with the office, knowingly:
861	a.  Permitting, or offering to make, or making, any
862	contract or agreement as to such contract other than as plainly
863	expressed in the insurance contract issued thereon;
864	b.  Paying, allowing, or giving, or offering to pay, allow,
865	or give, directly or indirectly, as inducement to such insurance
866	contract, any unlawful rebate of premiums payable on the
867	contract, any special favor or advantage in the dividends or
868	other benefits thereon, or any valuable consideration or
869	inducement whatever not specified in the contract;
870	c.  Giving, selling, or purchasing, or offering to give,
871	sell, or purchase, as inducement to such insurance contract or
872	in connection therewith, any stocks, bonds, or other securities
873	of any insurance company or other corporation, association, or
874	partnership, or any dividends or profits accrued thereon, or
875	anything of value whatsoever not specified in the insurance
876	contract.
877	2.  Nothing in paragraph (g) or subparagraph 1. of this
878	paragraph shall be construed as including within the definition
879	of discrimination or unlawful rebates:
880	a.  In the case of any contract of life insurance or life
881	annuity, paying bonuses to all policyholders or otherwise
882	abating their premiums in whole or in part out of surplus
883	accumulated from nonparticipating insurance; provided that any
884	such bonuses or abatement of premiums is fair and equitable to
885	all policyholders and for the best interests of the company and
886	its policyholders.
887	b.  In the case of life insurance policies issued on the
888	industrial debit plan, making allowance to policyholders who
889	have continuously for a specified period made premium payments
890	directly to an office of the insurer in an amount which fairly
891	represents the saving in collection expenses.
892	c.  Readjustment of the rate of premium for a group
893	insurance policy based on the loss or expense thereunder, at the
894	end of the first or any subsequent policy year of insurance
895	thereunder, which may be made retroactive only for such policy
896	year.
897	d.  Issuance of life insurance policies or annuity
898	contracts at rates less than the usual rates of premiums for
899	such policies or contracts, as group insurance or employee
900	insurance as defined in this code.
901	e.  Issuing life or disability insurance policies on a
902	salary savings, bank draft, preauthorized check, payroll
903	deduction, or other similar plan at a reduced rate reasonably
904	related to the savings made by the use of such plan.
905	3.a.  No title insurer, or any member, employee, attorney,
906	agent, or agency thereof, shall pay, allow, or give, or offer to
907	pay, allow, or give, directly or indirectly, as inducement to
908	title insurance, or after such insurance has been effected, any
909	rebate or abatement of the premium or any other charge or fee,
910	or provide any special favor or advantage, or any monetary
911	consideration or inducement whatever.
912	b.  Nothing in this subparagraph shall be construed as
913	prohibiting the payment of fees to attorneys at law duly
914	licensed to practice law in the courts of this state, for
915	professional services, or as prohibiting the payment of earned
916	portions of the premium to duly appointed agents or agencies who
917	actually perform services for the title insurer. Nothing in this
918	subparagraph shall be construed as prohibiting a rebate or
919	abatement of an attorney's fee charged for professional
920	services, or that portion of the premium that is not required to
921	be retained by the insurer pursuant to s. 627.782(1), or any
922	other agent charge or fee to the person responsible for paying
923	the premium, charge, or fee.
924	c.  No insured named in a policy, or any other person
925	directly or indirectly connected with the transaction involving
926	the issuance of such policy, including, but not limited to, any
927	mortgage broker, real estate broker, builder, or attorney, any
928	employee, agent, agency, or representative thereof, or any other
929	person whatsoever, shall knowingly receive or accept, directly
930	or indirectly, any rebate or abatement of any portion of the
931	title insurance premium or of any other charge or fee or any
932	monetary consideration or inducement whatsoever, except as set
933	forth in sub-subparagraph b.; provided, in no event shall any
934	portion of the attorney's fee, any portion of the premium that
935	is not required to be retained by the insurer pursuant to s.
936	627.782(1), any agent charge or fee, or any other monetary
937	consideration or inducement be paid directly or indirectly for
938	the referral of title insurance business.
939	4.  Providing a patronage dividend or other payment,
940	discount, or credit to a member of a production credit
941	association organized under 12 U.S.C. ss. 2071-2077 or a federal
942	land bank association organized under 12 U.S.C. ss. 2091-2098 is
943	an unlawful rebate if the dividend or other payment, discount,
944	or credit is directly or indirectly calculated on the basis of
945	the premium charged to that member for crop hail or multiple-
946	peril crop insurance.
947	Section 8.  Paragraphs (a) and (i) of subsection (2) of
948	section 627.062, Florida Statutes, are amended, and paragraph
949	(k) is added to that subsection, to read:
950	627.062  Rate standards.--
951	(2)  As to all such classes of insurance:
952	(a)  Insurers or rating organizations shall establish and
953	use rates, rating schedules, or rating manuals to allow the
954	insurer a reasonable rate of return on such classes of insurance
955	written in this state. A copy of rates, rating schedules, rating
956	manuals, premium credits or discount schedules, and surcharge
957	schedules, and changes thereto, shall be filed with the office
958	under one of the following procedures except as provided in
959	subparagraph 3.:
960	1.  If the filing is made at least 90 days before the
961	proposed effective date and the filing is not implemented during
962	the office's review of the filing and any proceeding and
963	judicial review, then such filing shall be considered a "file
964	and use" filing. In such case, the office shall finalize its
965	review by issuance of a notice of intent to approve or a notice
966	of intent to disapprove within 90 days after receipt of the
967	filing. The notice of intent to approve and the notice of intent
968	to disapprove constitute agency action for purposes of the
969	Administrative Procedure Act. Requests for supporting
970	information, requests for mathematical or mechanical
971	corrections, or notification to the insurer by the office of its
972	preliminary findings shall not toll the 90-day period during any
973	such proceedings and subsequent judicial review. The rate shall
974	be deemed approved if the office does not issue a notice of
975	intent to approve or a notice of intent to disapprove within 90
976	days after receipt of the filing.
977	2.  If the filing is not made in accordance with the
978	provisions of subparagraph 1., such filing shall be made as soon
979	as practicable, but no later than 30 days after the effective
980	date, and shall be considered a "use and file" filing. An
981	insurer making a "use and file" filing is potentially subject to
982	an order by the office to return to policyholders portions of
983	rates found to be excessive, as provided in paragraph (h).
984	3.  For all property insurance filings made or submitted
985	after January 25, 2007, but before December 31, 2010 2009, an
986	insurer seeking a rate that is greater than the rate most
987	recently approved by the office shall make a "file and use"
988	filing. For purposes of this subparagraph, motor vehicle
989	collision and comprehensive coverages are not considered to be
990	property coverages.
991	(i)1.  Except as otherwise specifically provided in this
992	chapter, the office shall not prohibit any insurer, including
993	any residual market plan or joint underwriting association, from
994	paying acquisition costs based on the full amount of premium, as
995	defined in s. 627.403, applicable to any policy, or prohibit any
996	such insurer from including the full amount of acquisition costs
997	in a rate filing.
998	2.  Unless specifically authorized by law, the office shall
999	not interfere, directly or indirectly, with an insurer's right
1000	to solicit, sell, promote, or otherwise acquire policyholders
1001	and implement coverage using its own lawful methodologies,
1002	systems, agents, and approaches, including the calculation,
1003	manner, or amount of agent commissions, if any. This
1004	subparagraph applies only to rate filings made pursuant to this
1005	section.
1006	(k)  Effective January 1, 2010, notwithstanding any other
1007	provision of this section:
1008	1.  With respect to any residential property insurance
1009	subject to regulation under this section, a rate filing,
1010	including, but not limited to, any rate changes, rating factors,
1011	territories, classifications, discounts, and credits, with
1012	respect to any policy form, including endorsements issued with
1013	the form, that results in an overall average statewide premium
1014	increase or decrease of no more than 10 percent above or below
1015	the premium that would result from the insurer's rates then in
1016	effect shall not be subject to a determination by the office
1017	that the rate is excessive or unfairly discriminatory, except as
1018	provided in subparagraph 3. or any other provision of law,
1019	provided all changes specified in the filing do not result in an
1020	overall premium increase of more than 15 percent for any one
1021	territory for reasons related solely to the rate change. As used
1022	in this subparagraph, the term "insurer's rates then in effect"
1023	includes only rates that have been lawfully in effect under this
1024	section or rates that have been determined to be lawful through
1025	administrative proceedings or judicial proceedings.
1026	2.  An insurer may not make filings under this paragraph
1027	with respect to any policy form, including endorsements issued
1028	with the form, if the overall premium changes resulting from
1029	such filings exceed the amounts specified in this paragraph in
1030	any 12-month period. An insurer may proceed under other
1031	provisions of this section or other provisions of the laws of
1032	this state if the insurer seeks to exceed the premium or rate
1033	limitations of this paragraph.
1034	3.  This paragraph does not affect the authority of the
1035	office to disapprove a rate as inadequate or to disapprove a
1036	filing for the unlawful use of unfairly discriminatory rating
1037	factors that are prohibited by the laws of this state. An
1038	insurer electing to implement a rate change under this paragraph
1039	shall submit a filing to the office at least 30 days prior to
1040	the effective date of the rate change. The office shall have 30
1041	days after the filing's submission to review the filing and
1042	determine if the rate is inadequate or uses unfairly
1043	discriminatory rating factors. Absent a finding by the office
1044	within such 30-day period that the rate is inadequate or that
1045	the insurer has used unfairly discriminatory rating factors, the
1046	filing is deemed approved. If the insurer is implementing an
1047	overall rate decrease and the office finds during the 30-day
1048	period that the filing will result in inadequate premiums or
1049	otherwise endanger the insurer's solvency, the office shall
1050	suspend the rate decrease. If the insurer is implementing an
1051	overall rate increase the results of which continue to produce
1052	an inadequate rate, such increase shall proceed pending
1053	additional action by the office to ensure the adequacy of the
1054	rate.
1055	4.  This paragraph does not apply to rate filings for any
1056	insurance other than residential property insurance.
1057
1058	The provisions of this subsection shall not apply to workers'
1059	compensation and employer's liability insurance and to motor
1060	vehicle insurance.
1061	Section 9.  Section 627.0621, Florida Statutes, as amended
1062	by section 82 of chapter 2009-21, Laws of Florida, is amended to
1063	read:
1064	627.0621  Transparency in rate regulation.--
1065	(1)  DEFINITIONS.--As used in this section, the term:
1066	(a)  "Rate filing" means any original or amended rate
1067	residential property insurance filing.
1068	(b)  "Recommendation" means any proposed, preliminary, or
1069	final recommendation from an office actuary reviewing a rate
1070	filing with respect to the issue of approval or disapproval of
1071	the rate filing or with respect to rate indications that the
1072	office would consider acceptable.
1073	(2)  WEBSITE FOR PUBLIC ACCESS TO RATE FILING
1074	INFORMATION.--With respect to any rate filing made on or after
1075	July 1, 2008, the office shall provide the following information
1076	on a publicly accessible Internet website:
1077	(a)  The overall rate change requested by the insurer.
1078	(b)  All assumptions made by the office's actuaries.
1079	(c)  A statement describing any assumptions or methods that
1080	deviate from the actuarial standards of practice of the Casualty
1081	Actuarial Society or the American Academy of Actuaries,
1082	including an explanation of the nature, rationale, and effect of
1083	the deviation.
1084	(d)  All recommendations made by any office actuary who
1085	reviewed the rate filing.
1086	(e)  Certification by the office's actuary that, based on
1087	the actuary's knowledge, his or her recommendations are
1088	consistent with accepted actuarial principles.
1089	(f)  The overall rate change approved by the office.
1090	(3)  ATTORNEY-CLIENT PRIVILEGE; WORK PRODUCT.--It is the
1091	intent of the Legislature that the principles of the public
1092	records and open meetings laws apply to the assertion of
1093	attorney-client privilege and work product confidentiality by
1094	the office in connection with a challenge to its actions on a
1095	rate filing. Therefore, in any administrative or judicial
1096	proceeding relating to a rate filing, attorney-client privilege
1097	and work product exemptions from disclosure do not apply to
1098	communications with office attorneys or records prepared by or
1099	at the direction of an office attorney, except when the
1100	conditions of paragraphs (a) and (b) have been met:
1101	(a)  The communication or record reflects a mental
1102	impression, conclusion, litigation strategy, or legal theory of
1103	the attorney or office that was prepared exclusively for civil
1104	or criminal litigation or adversarial administrative
1105	proceedings.
1106	(b)  The communication occurred or the record was prepared
1107	after the initiation of an action in a court of competent
1108	jurisdiction, after the issuance of a notice of intent to deny a
1109	rate filing, or after the filing of a request for a proceeding
1110	under ss. 120.569 and 120.57.
1111	Section 10.  Subsection (4) is added to section 627.0628,
1112	Florida Statutes, to read:
1113	627.0628  Florida Commission on Hurricane Loss Projection
1114	Methodology; public records exemption; public meetings
1115	exemption.--
1116	(4)  REVIEW OF DISCOUNTS, CREDITS, OTHER RATE
1117	DIFFERENTIALS, AND REDUCTIONS IN DEDUCTIBLES RELATING TO
1118	WINDSTORM MITIGATION.--The commission shall hold public meetings
1119	for the purpose of receiving testimony and data regarding the
1120	implementation of windstorm mitigation discounts, credits, other
1121	rate differentials, and appropriate reductions in deductibles
1122	pursuant to s. 627.0629. After reviewing the testimony and data
1123	as well as any other information the commission deems
1124	appropriate, the commission shall present a report by October 1,
1125	2009, to the Governor, the Cabinet, the President of the Senate,
1126	and the Speaker of the House of Representatives, including
1127	recommendations on improving the process of assessing,
1128	determining, and applying windstorm mitigation discounts,
1129	credits, other rate differentials, and appropriate reductions in
1130	deductibles pursuant to s. 627.0629.
1131	Section 11.  Paragraph (b) of subsection (1) and subsection
1132	(5) of section 627.0629, Florida Statutes, are amended to read:
1133	627.0629  Residential property insurance; rate filings.--
1134	(1)
1135	(b)  By February 1, 2011, the Office of Insurance
1136	Regulation, in consultation with the Department of Financial
1137	Services and the Department of Community Affairs, shall develop
1138	and make publicly available a proposed method for insurers to
1139	establish discounts, credits, or other rate differentials for
1140	hurricane mitigation measures which directly correlate to the
1141	numerical rating assigned to a structure pursuant to the uniform
1142	home grading scale adopted by the Financial Services Commission
1143	pursuant to s. 215.55865, including any proposed changes to the
1144	uniform home grading scale. By October 1, 2011, the commission
1145	shall adopt rules requiring insurers to make rate filings for
1146	residential property insurance which revise insurers' discounts,
1147	credits, or other rate differentials for hurricane mitigation
1148	measures so that such rate differentials correlate directly to
1149	the uniform home grading scale. The rules may include such
1150	changes to the uniform home grading scale as the commission
1151	determines are necessary, and may specify the minimum required
1152	discounts, credits, or other rate differentials. Such rate
1153	differentials must be consistent with generally accepted
1154	actuarial principles and wind-loss mitigation studies. The rules
1155	shall allow a period of at least 2 years after the effective
1156	date of the revised mitigation discounts, credits, or other rate
1157	differentials for a property owner to obtain an inspection or
1158	otherwise qualify for the revised credit, during which time the
1159	insurer shall continue to apply the mitigation credit that was
1160	applied immediately prior to the effective date of the revised
1161	credit. Discounts, credits, and other rate differentials
1162	established for rate filings under this paragraph shall
1163	supersede, after adoption, the discounts, credits, and other
1164	rate differentials included in rate filings under paragraph (a).
1165	(5)  In order to provide an appropriate transition period,
1166	an insurer may, in its sole discretion, implement an approved
1167	rate filing for residential property insurance over a period of
1168	years. An insurer electing to phase in its rate filing must
1169	provide an informational notice to the office setting out its
1170	schedule for implementation of the phased-in rate filing. An
1171	insurer may include in its rate the actual cost of reinsurance
1172	without the addition of an expense or profit load for the
1173	insurer that duplicates coverage of the temporary increase in
1174	coverage limit (TICL) available from the Florida Hurricane
1175	Catastrophe Fund, even if the insurer does not purchase the TICL
1176	coverage, to the extent the total annual base rate increase does
1177	not exceed 10 percent as a result of such inclusion.
1178	Section 12.  Section 627.0655, Florida Statutes, is amended
1179	to read:
1180	627.0655  Policyholder loss or expense-related premium
1181	discounts.--An insurer or person authorized to engage in the
1182	business of insurance in this state may include, in the premium
1183	charged an insured for any policy, contract, or certificate of
1184	insurance, a discount based on the fact that another policy,
1185	contract, or certificate of any type has been purchased by the
1186	insured from the same insurer or insurer group, or, for policies
1187	issued or renewed before January 1, 2010, from the Citizens
1188	Property Insurance Corporation created under s. 627.351(6) if
1189	the same insurance agent is servicing both policies, or for
1190	policies issued or renewed before January 1, 2010, from an
1191	insurer that has removed the policy from the Citizens Property
1192	Insurance Corporation if the same insurance agent is servicing
1193	both policies.
1194	Section 13.  Paragraphs (y) through (ee) of subsection (6)
1195	of section 627.351, Florida Statutes, are redesignated as
1196	paragraphs (x) through (dd), respectively, and paragraphs (a),
1197	(b), (c), and (m) and present paragraph (x) of that subsection
1198	are amended to read:
1199	627.351  Insurance risk apportionment plans.--
1200	(6)  CITIZENS PROPERTY INSURANCE CORPORATION.--
1201	(a)1.  It is the public purpose of this subsection to
1202	ensure the existence of an orderly market for property insurance
1203	for Floridians and Florida businesses. The Legislature finds
1204	that private insurers are unwilling or unable to provide
1205	affordable property insurance coverage in this state to the
1206	extent sought and needed. The absence of affordable property
1207	insurance threatens the public health, safety, and welfare and
1208	likewise threatens the economic health of the state. The state
1209	therefore has a compelling public interest and a public purpose
1210	to assist in assuring that property in the state is insured and
1211	that it is insured at affordable rates so as to facilitate the
1212	remediation, reconstruction, and replacement of damaged or
1213	destroyed property in order to reduce or avoid the negative
1214	effects otherwise resulting to the public health, safety, and
1215	welfare, to the economy of the state, and to the revenues of the
1216	state and local governments which are needed to provide for the
1217	public welfare. It is necessary, therefore, to provide
1218	affordable property insurance to applicants who are in good
1219	faith entitled to procure insurance through the voluntary market
1220	but are unable to do so. The Legislature intends by this
1221	subsection that affordable property insurance be provided and
1222	that it continue to be provided, as long as necessary, through
1223	Citizens Property Insurance Corporation, a government entity
1224	that is an integral part of the state, and that is not a private
1225	insurance company. To that end, Citizens Property Insurance
1226	Corporation shall strive to increase the availability of
1227	affordable property insurance in this state, while achieving
1228	efficiencies and economies, and while providing service to
1229	policyholders, applicants, and agents which is no less than the
1230	quality generally provided in the voluntary market, for the
1231	achievement of the foregoing public purposes. Because it is
1232	essential for this government entity to have the maximum
1233	financial resources to pay claims following a catastrophic
1234	hurricane, it is the intent of the Legislature that Citizens
1235	Property Insurance Corporation continue to be an integral part
1236	of the state and that the income of the corporation be exempt
1237	from federal income taxation and that interest on the debt
1238	obligations issued by the corporation be exempt from federal
1239	income taxation.
1240	2.  The Residential Property and Casualty Joint
1241	Underwriting Association originally created by this statute
1242	shall be known, as of July 1, 2002, as the Citizens Property
1243	Insurance Corporation. The corporation shall provide insurance
1244	for residential and commercial property, for applicants who are
1245	in good faith entitled, but are unable, to procure insurance
1246	through the voluntary market. The corporation shall operate
1247	pursuant to a plan of operation approved by order of the
1248	Financial Services Commission. The plan is subject to continuous
1249	review by the commission. The commission may, by order, withdraw
1250	approval of all or part of a plan if the commission determines
1251	that conditions have changed since approval was granted and that
1252	the purposes of the plan require changes in the plan. The
1253	corporation shall continue to operate pursuant to the plan of
1254	operation approved by the Office of Insurance Regulation until
1255	October 1, 2006. For the purposes of this subsection,
1256	residential coverage includes both personal lines residential
1257	coverage, which consists of the type of coverage provided by
1258	homeowner's, mobile home owner's, dwelling, tenant's,
1259	condominium unit owner's, and similar policies, and commercial
1260	lines residential coverage, which consists of the type of
1261	coverage provided by condominium association, apartment
1262	building, and similar policies.
1263	3.  Effective January 1, 2009, a personal lines residential
1264	structure that has a dwelling replacement cost of $2 million or
1265	more, or a single condominium unit that has a combined dwelling
1266	and content replacement cost of $2 million or more is not
1267	eligible for coverage by the corporation. Such dwellings insured
1268	by the corporation on December 31, 2008, may continue to be
1269	covered by the corporation until the end of the policy term.
1270	However, such dwellings that are insured by the corporation and
1271	become ineligible for coverage due to the provisions of this
1272	subparagraph may reapply and obtain coverage if the property
1273	owner provides the corporation with a sworn affidavit from one
1274	or more insurance agents, on a form provided by the corporation,
1275	stating that the agents have made their best efforts to obtain
1276	coverage and that the property has been rejected for coverage by
1277	at least one authorized insurer and at least three surplus lines
1278	insurers. If such conditions are met, the dwelling may be
1279	insured by the corporation for up to 3 years, after which time
1280	the dwelling is ineligible for coverage. The office shall
1281	approve the method used by the corporation for valuing the
1282	dwelling replacement cost for the purposes of this subparagraph.
1283	If a policyholder is insured by the corporation prior to being
1284	determined to be ineligible pursuant to this subparagraph and
1285	such policyholder files a lawsuit challenging the determination,
1286	the policyholder may remain insured by the corporation until the
1287	conclusion of the litigation.
1288	4.  It is the intent of the Legislature that policyholders,
1289	applicants, and agents of the corporation receive service and
1290	treatment of the highest possible level but never less than that
1291	generally provided in the voluntary market. It also is intended
1292	that the corporation be held to service standards no less than
1293	those applied to insurers in the voluntary market by the office
1294	with respect to responsiveness, timeliness, customer courtesy,
1295	and overall dealings with policyholders, applicants, or agents
1296	of the corporation.
1297	5.  Effective January 1, 2009, a personal lines residential
1298	structure that is located in the "wind-borne debris region," as
1299	defined in s. 1609.2, International Building Code (2006), and
1300	that has an insured value on the structure of $750,000 or more
1301	is not eligible for coverage by the corporation unless the
1302	structure has opening protections as required under the Florida
1303	Building Code for a newly constructed residential structure in
1304	that area. A residential structure shall be deemed to comply
1305	with the requirements of this subparagraph if it has shutters or
1306	opening protections on all openings and if such opening
1307	protections complied with the Florida Building Code at the time
1308	they were installed. Effective January 1, 2010, for personal
1309	lines residential property insured by the corporation that is
1310	located in the wind-borne debris region and has an insured value
1311	on the structure of $500,000 or more, a prospective purchaser of
1312	any such residential property must be provided by the seller a
1313	written disclosure that contains the structure's windstorm
1314	mitigation rating based on the uniform home grading scale
1315	adopted under s. 215.55865. Such rating shall be provided to the
1316	purchaser at or before the time the purchaser executes a
1317	contract for sale and purchase.
1318	(b)1.  All insurers authorized to write one or more subject
1319	lines of business in this state are subject to assessment by the
1320	corporation and, for the purposes of this subsection, are
1321	referred to collectively as "assessable insurers." Insurers
1322	writing one or more subject lines of business in this state
1323	pursuant to part VIII of chapter 626 are not assessable
1324	insurers, but insureds who procure one or more subject lines of
1325	business in this state pursuant to part VIII of chapter 626 are
1326	subject to assessment by the corporation and are referred to
1327	collectively as "assessable insureds." An authorized insurer's
1328	assessment liability shall begin on the first day of the
1329	calendar year following the year in which the insurer was issued
1330	a certificate of authority to transact insurance for subject
1331	lines of business in this state and shall terminate 1 year after
1332	the end of the first calendar year during which the insurer no
1333	longer holds a certificate of authority to transact insurance
1334	for subject lines of business in this state.
1335	2.a.  All revenues, assets, liabilities, losses, and
1336	expenses of the corporation shall be divided into three separate
1337	accounts as follows:
1338	(I)  A personal lines account for personal residential
1339	policies issued by the corporation or issued by the Residential
1340	Property and Casualty Joint Underwriting Association and renewed
1341	by the corporation that provide comprehensive, multiperil
1342	coverage on risks that are not located in areas eligible for
1343	coverage in the Florida Windstorm Underwriting Association as
1344	those areas were defined on January 1, 2002, and for such
1345	policies that do not provide coverage for the peril of wind on
1346	risks that are located in such areas;
1347	(II)  A commercial lines account for commercial residential
1348	and commercial nonresidential policies issued by the corporation
1349	or issued by the Residential Property and Casualty Joint
1350	Underwriting Association and renewed by the corporation that
1351	provide coverage for basic property perils on risks that are not
1352	located in areas eligible for coverage in the Florida Windstorm
1353	Underwriting Association as those areas were defined on January
1354	1, 2002, and for such policies that do not provide coverage for
1355	the peril of wind on risks that are located in such areas; and
1356	(III)  A high-risk account for personal residential
1357	policies and commercial residential and commercial
1358	nonresidential property policies issued by the corporation or
1359	transferred to the corporation that provide coverage for the
1360	peril of wind on risks that are located in areas eligible for
1361	coverage in the Florida Windstorm Underwriting Association as
1362	those areas were defined on January 1, 2002. The corporation may
1363	offer policies that provide multiperil coverage and the
1364	corporation shall continue to offer policies that provide
1365	coverage only for the peril of wind for risks located in areas
1366	eligible for coverage in the high-risk account. In issuing
1367	multiperil coverage, the corporation may use its approved policy
1368	forms and rates for the personal lines account. An applicant or
1369	insured who is eligible to purchase a multiperil policy from the
1370	corporation may purchase a multiperil policy from an authorized
1371	insurer without prejudice to the applicant's or insured's
1372	eligibility to prospectively purchase a policy that provides
1373	coverage only for the peril of wind from the corporation. An
1374	applicant or insured who is eligible for a corporation policy
1375	that provides coverage only for the peril of wind may elect to
1376	purchase or retain such policy and also purchase or retain
1377	coverage excluding wind from an authorized insurer without
1378	prejudice to the applicant's or insured's eligibility to
1379	prospectively purchase a policy that provides multiperil
1380	coverage from the corporation. It is the goal of the Legislature
1381	that there would be an overall average savings of 10 percent or
1382	more for a policyholder who currently has a wind-only policy
1383	with the corporation, and an ex-wind policy with a voluntary
1384	insurer or the corporation, and who then obtains a multiperil
1385	policy from the corporation. It is the intent of the Legislature
1386	that the offer of multiperil coverage in the high-risk account
1387	be made and implemented in a manner that does not adversely
1388	affect the tax-exempt status of the corporation or
1389	creditworthiness of or security for currently outstanding
1390	financing obligations or credit facilities of the high-risk
1391	account, the personal lines account, or the commercial lines
1392	account. The high-risk account must also include quota share
1393	primary insurance under subparagraph (c)2. The area eligible for
1394	coverage under the high-risk account also includes the area
1395	within Port Canaveral, which is bordered on the south by the
1396	City of Cape Canaveral, bordered on the west by the Banana
1397	River, and bordered on the north by Federal Government property.
1398	b.  The three separate accounts must be maintained as long
1399	as financing obligations entered into by the Florida Windstorm
1400	Underwriting Association or Residential Property and Casualty
1401	Joint Underwriting Association are outstanding, in accordance
1402	with the terms of the corresponding financing documents. When
1403	the financing obligations are no longer outstanding, in
1404	accordance with the terms of the corresponding financing
1405	documents, the corporation may use a single account for all
1406	revenues, assets, liabilities, losses, and expenses of the
1407	corporation. Consistent with the requirement of this
1408	subparagraph and prudent investment policies that minimize the
1409	cost of carrying debt, the board shall exercise its best efforts
1410	to retire existing debt or to obtain approval of necessary
1411	parties to amend the terms of existing debt, so as to structure
1412	the most efficient plan to consolidate the three separate
1413	accounts into a single account. By February 1, 2007, the board
1414	shall submit a report to the Financial Services Commission, the
1415	President of the Senate, and the Speaker of the House of
1416	Representatives which includes an analysis of consolidating the
1417	accounts, the actions the board has taken to minimize the cost
1418	of carrying debt, and its recommendations for executing the most
1419	efficient plan.
1420	c.  Creditors of the Residential Property and Casualty
1421	Joint Underwriting Association and of the accounts specified in
1422	sub-sub-subparagraphs a.(I) and (II) may have a claim against,
1423	and recourse to, the accounts referred to in sub-sub-
1424	subparagraphs a.(I) and (II) and shall have no claim against, or
1425	recourse to, the account referred to in sub-sub-subparagraph
1426	a.(III). Creditors of the Florida Windstorm Underwriting
1427	Association shall have a claim against, and recourse to, the
1428	account referred to in sub-sub-subparagraph a.(III) and shall
1429	have no claim against, or recourse to, the accounts referred to
1430	in sub-sub-subparagraphs a.(I) and (II).
1431	d.  Revenues, assets, liabilities, losses, and expenses not
1432	attributable to particular accounts shall be prorated among the
1433	accounts.
1434	e.  The Legislature finds that the revenues of the
1435	corporation are revenues that are necessary to meet the
1436	requirements set forth in documents authorizing the issuance of
1437	bonds under this subsection.
1438	f.  No part of the income of the corporation may inure to
1439	the benefit of any private person.
1440	3.  With respect to a deficit in an account:
1441	a.  After accounting for the Citizens policyholder
1442	surcharge imposed under sub-subparagraph i., when the remaining
1443	projected deficit incurred in a particular calendar year is not
1444	greater than 6 percent of the aggregate statewide direct written
1445	premium for the subject lines of business for the prior calendar
1446	year, the entire deficit shall be recovered through regular
1447	assessments of assessable insurers under paragraph (p) and
1448	assessable insureds.
1449	b.  After accounting for the Citizens policyholder
1450	surcharge imposed under sub-subparagraph i., when the remaining
1451	projected deficit incurred in a particular calendar year exceeds
1452	6 percent of the aggregate statewide direct written premium for
1453	the subject lines of business for the prior calendar year, the
1454	corporation shall levy regular assessments on assessable
1455	insurers under paragraph (p) and on assessable insureds in an
1456	amount equal to the greater of 6 percent of the deficit or 6
1457	percent of the aggregate statewide direct written premium for
1458	the subject lines of business for the prior calendar year. Any
1459	remaining deficit shall be recovered through emergency
1460	assessments under sub-subparagraph d.
1461	c.  Each assessable insurer's share of the amount being
1462	assessed under sub-subparagraph a. or sub-subparagraph b. shall
1463	be in the proportion that the assessable insurer's direct
1464	written premium for the subject lines of business for the year
1465	preceding the assessment bears to the aggregate statewide direct
1466	written premium for the subject lines of business for that year.
1467	The assessment percentage applicable to each assessable insured
1468	is the ratio of the amount being assessed under sub-subparagraph
1469	a. or sub-subparagraph b. to the aggregate statewide direct
1470	written premium for the subject lines of business for the prior
1471	year. Assessments levied by the corporation on assessable
1472	insurers under sub-subparagraphs a. and b. shall be paid as
1473	required by the corporation's plan of operation and paragraph
1474	(p). Assessments levied by the corporation on assessable
1475	insureds under sub-subparagraphs a. and b. shall be collected by
1476	the surplus lines agent at the time the surplus lines agent
1477	collects the surplus lines tax required by s. 626.932 and shall
1478	be paid to the Florida Surplus Lines Service Office at the time
1479	the surplus lines agent pays the surplus lines tax to the
1480	Florida Surplus Lines Service Office. Upon receipt of regular
1481	assessments from surplus lines agents, the Florida Surplus Lines
1482	Service Office shall transfer the assessments directly to the
1483	corporation as determined by the corporation.
1484	d.  Upon a determination by the board of governors that a
1485	deficit in an account exceeds the amount that will be recovered
1486	through regular assessments under sub-subparagraph a. or sub-
1487	subparagraph b., plus the amount that is expected to be
1488	recovered through surcharges under sub-subparagraph i., as to
1489	the remaining projected deficit the board shall levy, after
1490	verification by the office, emergency assessments, for as many
1491	years as necessary to cover the deficits, to be collected by
1492	assessable insurers and the corporation and collected from
1493	assessable insureds upon issuance or renewal of policies for
1494	subject lines of business, excluding National Flood Insurance
1495	policies. The amount of the emergency assessment collected in a
1496	particular year shall be a uniform percentage of that year's
1497	direct written premium for subject lines of business and all
1498	accounts of the corporation, excluding National Flood Insurance
1499	Program policy premiums, as annually determined by the board and
1500	verified by the office. The office shall verify the arithmetic
1501	calculations involved in the board's determination within 30
1502	days after receipt of the information on which the determination
1503	was based. Notwithstanding any other provision of law, the
1504	corporation and each assessable insurer that writes subject
1505	lines of business shall collect emergency assessments from its
1506	policyholders without such obligation being affected by any
1507	credit, limitation, exemption, or deferment. Emergency
1508	assessments levied by the corporation on assessable insureds
1509	shall be collected by the surplus lines agent at the time the
1510	surplus lines agent collects the surplus lines tax required by
1511	s. 626.932 and shall be paid to the Florida Surplus Lines
1512	Service Office at the time the surplus lines agent pays the
1513	surplus lines tax to the Florida Surplus Lines Service Office.
1514	The emergency assessments so collected shall be transferred
1515	directly to the corporation on a periodic basis as determined by
1516	the corporation and shall be held by the corporation solely in
1517	the applicable account. The aggregate amount of emergency
1518	assessments levied for an account under this sub-subparagraph in
1519	any calendar year may, at the discretion of the board of
1520	governors, be less than but may not exceed the greater of 10
1521	percent of the amount needed to cover the deficit, plus
1522	interest, fees, commissions, required reserves, and other costs
1523	associated with financing of the original deficit, or 10 percent
1524	of the aggregate statewide direct written premium for subject
1525	lines of business and for all accounts of the corporation for
1526	the prior year, plus interest, fees, commissions, required
1527	reserves, and other costs associated with financing the deficit.
1528	e.  The corporation may pledge the proceeds of assessments,
1529	projected recoveries from the Florida Hurricane Catastrophe
1530	Fund, other insurance and reinsurance recoverables, policyholder
1531	surcharges and other surcharges, and other funds available to
1532	the corporation as the source of revenue for and to secure bonds
1533	issued under paragraph (p), bonds or other indebtedness issued
1534	under subparagraph (c)3., or lines of credit or other financing
1535	mechanisms issued or created under this subsection, or to retire
1536	any other debt incurred as a result of deficits or events giving
1537	rise to deficits, or in any other way that the board determines
1538	will efficiently recover such deficits. The purpose of the lines
1539	of credit or other financing mechanisms is to provide additional
1540	resources to assist the corporation in covering claims and
1541	expenses attributable to a catastrophe. As used in this
1542	subsection, the term "assessments" includes regular assessments
1543	under sub-subparagraph a., sub-subparagraph b., or subparagraph
1544	(p)1. and emergency assessments under sub-subparagraph d.
1545	Emergency assessments collected under sub-subparagraph d. are
1546	not part of an insurer's rates, are not premium, and are not
1547	subject to premium tax, fees, or commissions; however, failure
1548	to pay the emergency assessment shall be treated as failure to
1549	pay premium. The emergency assessments under sub-subparagraph d.
1550	shall continue as long as any bonds issued or other indebtedness
1551	incurred with respect to a deficit for which the assessment was
1552	imposed remain outstanding, unless adequate provision has been
1553	made for the payment of such bonds or other indebtedness
1554	pursuant to the documents governing such bonds or other
1555	indebtedness.
1556	f.  As used in this subsection for purposes of any deficit
1557	incurred on or after January 25, 2007, the term "subject lines
1558	of business" means insurance written by assessable insurers or
1559	procured by assessable insureds for all property and casualty
1560	lines of business in this state, but not including workers'
1561	compensation or medical malpractice. As used in the sub-
1562	subparagraph, the term "property and casualty lines of business"
1563	includes all lines of business identified on Form 2, Exhibit of
1564	Premiums and Losses, in the annual statement required of
1565	authorized insurers by s. 624.424 and any rule adopted under
1566	this section, except for those lines identified as accident and
1567	health insurance and except for policies written under the
1568	National Flood Insurance Program or the Federal Crop Insurance
1569	Program. For purposes of this sub-subparagraph, the term
1570	"workers' compensation" includes both workers' compensation
1571	insurance and excess workers' compensation insurance.
1572	g.  The Florida Surplus Lines Service Office shall
1573	determine annually the aggregate statewide written premium in
1574	subject lines of business procured by assessable insureds and
1575	shall report that information to the corporation in a form and
1576	at a time the corporation specifies to ensure that the
1577	corporation can meet the requirements of this subsection and the
1578	corporation's financing obligations.
1579	h.  The Florida Surplus Lines Service Office shall verify
1580	the proper application by surplus lines agents of assessment
1581	percentages for regular assessments and emergency assessments
1582	levied under this subparagraph on assessable insureds and shall
1583	assist the corporation in ensuring the accurate, timely
1584	collection and payment of assessments by surplus lines agents as
1585	required by the corporation.
1586	i.  If a deficit is incurred in any account in 2008 or
1587	thereafter, the board of governors shall levy a Citizens
1588	policyholder surcharge against all policyholders of the
1589	corporation for a 12-month period, which shall be collected at
1590	the time of issuance or renewal of a policy, as a uniform
1591	percentage of the premium for the policy of up to 25 15 percent
1592	of such premium, which funds shall be used to offset the
1593	deficit. Citizens policyholder surcharges under this sub-
1594	subparagraph are not considered premium and are not subject to
1595	commissions, fees, or premium taxes. However, failure to pay
1596	such surcharges shall be treated as failure to pay premium.
1597	j.  If the amount of any assessments or surcharges
1598	collected from corporation policyholders, assessable insurers or
1599	their policyholders, or assessable insureds exceeds the amount
1600	of the deficits, such excess amounts shall be remitted to and
1601	retained by the corporation in a reserve to be used by the
1602	corporation, as determined by the board of governors and
1603	approved by the office, to pay claims or reduce any past,
1604	present, or future plan-year deficits or to reduce outstanding
1605	debt.
1606	(c)  The plan of operation of the corporation:
1607	1.  Must provide for adoption of residential property and
1608	casualty insurance policy forms and commercial residential and
1609	nonresidential property insurance forms, which forms must be
1610	approved by the office prior to use. The corporation shall adopt
1611	the following policy forms:
1612	a.  Standard personal lines policy forms that are
1613	comprehensive multiperil policies providing full coverage of a
1614	residential property equivalent to the coverage provided in the
1615	private insurance market under an HO-3, HO-4, or HO-6 policy.
1616	b.  Basic personal lines policy forms that are policies
1617	similar to an HO-8 policy or a dwelling fire policy that provide
1618	coverage meeting the requirements of the secondary mortgage
1619	market, but which coverage is more limited than the coverage
1620	under a standard policy.
1621	c.  Commercial lines residential and nonresidential policy
1622	forms that are generally similar to the basic perils of full
1623	coverage obtainable for commercial residential structures and
1624	commercial nonresidential structures in the admitted voluntary
1625	market.
1626	d.  Personal lines and commercial lines residential
1627	property insurance forms that cover the peril of wind only. The
1628	forms are applicable only to residential properties located in
1629	areas eligible for coverage under the high-risk account referred
1630	to in sub-subparagraph (b)2.a.
1631	e.  Commercial lines nonresidential property insurance
1632	forms that cover the peril of wind only. The forms are
1633	applicable only to nonresidential properties located in areas
1634	eligible for coverage under the high-risk account referred to in
1635	sub-subparagraph (b)2.a.
1636	f.  The corporation may adopt variations of the policy
1637	forms listed in sub-subparagraphs a.-e. that contain more
1638	restrictive coverage.
1639	2.a.  Must provide that the corporation adopt a program in
1640	which the corporation and authorized insurers enter into quota
1641	share primary insurance agreements for hurricane coverage, as
1642	defined in s. 627.4025(2)(a), for eligible risks, and adopt
1643	property insurance forms for eligible risks which cover the
1644	peril of wind only. As used in this subsection, the term:
1645	(I)  "Quota share primary insurance" means an arrangement
1646	in which the primary hurricane coverage of an eligible risk is
1647	provided in specified percentages by the corporation and an
1648	authorized insurer. The corporation and authorized insurer are
1649	each solely responsible for a specified percentage of hurricane
1650	coverage of an eligible risk as set forth in a quota share
1651	primary insurance agreement between the corporation and an
1652	authorized insurer and the insurance contract. The
1653	responsibility of the corporation or authorized insurer to pay
1654	its specified percentage of hurricane losses of an eligible
1655	risk, as set forth in the quota share primary insurance
1656	agreement, may not be altered by the inability of the other
1657	party to the agreement to pay its specified percentage of
1658	hurricane losses. Eligible risks that are provided hurricane
1659	coverage through a quota share primary insurance arrangement
1660	must be provided policy forms that set forth the obligations of
1661	the corporation and authorized insurer under the arrangement,
1662	clearly specify the percentages of quota share primary insurance
1663	provided by the corporation and authorized insurer, and
1664	conspicuously and clearly state that neither the authorized
1665	insurer nor the corporation may be held responsible beyond its
1666	specified percentage of coverage of hurricane losses.
1667	(II)  "Eligible risks" means personal lines residential and
1668	commercial lines residential risks that meet the underwriting
1669	criteria of the corporation and are located in areas that were
1670	eligible for coverage by the Florida Windstorm Underwriting
1671	Association on January 1, 2002.
1672	b.  The corporation may enter into quota share primary
1673	insurance agreements with authorized insurers at corporation
1674	coverage levels of 90 percent and 50 percent.
1675	c.  If the corporation determines that additional coverage
1676	levels are necessary to maximize participation in quota share
1677	primary insurance agreements by authorized insurers, the
1678	corporation may establish additional coverage levels. However,
1679	the corporation's quota share primary insurance coverage level
1680	may not exceed 90 percent.
1681	d.  Any quota share primary insurance agreement entered
1682	into between an authorized insurer and the corporation must
1683	provide for a uniform specified percentage of coverage of
1684	hurricane losses, by county or territory as set forth by the
1685	corporation board, for all eligible risks of the authorized
1686	insurer covered under the quota share primary insurance
1687	agreement.
1688	e.  Any quota share primary insurance agreement entered
1689	into between an authorized insurer and the corporation is
1690	subject to review and approval by the office. However, such
1691	agreement shall be authorized only as to insurance contracts
1692	entered into between an authorized insurer and an insured who is
1693	already insured by the corporation for wind coverage.
1694	f.  For all eligible risks covered under quota share
1695	primary insurance agreements, the exposure and coverage levels
1696	for both the corporation and authorized insurers shall be
1697	reported by the corporation to the Florida Hurricane Catastrophe
1698	Fund. For all policies of eligible risks covered under quota
1699	share primary insurance agreements, the corporation and the
1700	authorized insurer shall maintain complete and accurate records
1701	for the purpose of exposure and loss reimbursement audits as
1702	required by Florida Hurricane Catastrophe Fund rules. The
1703	corporation and the authorized insurer shall each maintain
1704	duplicate copies of policy declaration pages and supporting
1705	claims documents.
1706	g.  The corporation board shall establish in its plan of
1707	operation standards for quota share agreements which ensure that
1708	there is no discriminatory application among insurers as to the
1709	terms of quota share agreements, pricing of quota share
1710	agreements, incentive provisions if any, and consideration paid
1711	for servicing policies or adjusting claims.
1712	h.  The quota share primary insurance agreement between the
1713	corporation and an authorized insurer must set forth the
1714	specific terms under which coverage is provided, including, but
1715	not limited to, the sale and servicing of policies issued under
1716	the agreement by the insurance agent of the authorized insurer
1717	producing the business, the reporting of information concerning
1718	eligible risks, the payment of premium to the corporation, and
1719	arrangements for the adjustment and payment of hurricane claims
1720	incurred on eligible risks by the claims adjuster and personnel
1721	of the authorized insurer. Entering into a quota sharing
1722	insurance agreement between the corporation and an authorized
1723	insurer shall be voluntary and at the discretion of the
1724	authorized insurer.
1725	3.  May provide that the corporation may employ or
1726	otherwise contract with individuals or other entities to provide
1727	administrative or professional services that may be appropriate
1728	to effectuate the plan. The corporation shall have the power to
1729	borrow funds, by issuing bonds or by incurring other
1730	indebtedness, and shall have other powers reasonably necessary
1731	to effectuate the requirements of this subsection, including,
1732	without limitation, the power to issue bonds and incur other
1733	indebtedness in order to refinance outstanding bonds or other
1734	indebtedness. The corporation may, but is not required to, seek
1735	judicial validation of its bonds or other indebtedness under
1736	chapter 75. The corporation may issue bonds or incur other
1737	indebtedness, or have bonds issued on its behalf by a unit of
1738	local government pursuant to subparagraph (p)2., in the absence
1739	of a hurricane or other weather-related event, upon a
1740	determination by the corporation, subject to approval by the
1741	office, that such action would enable it to efficiently meet the
1742	financial obligations of the corporation and that such
1743	financings are reasonably necessary to effectuate the
1744	requirements of this subsection. The corporation is authorized
1745	to take all actions needed to facilitate tax-free status for any
1746	such bonds or indebtedness, including formation of trusts or
1747	other affiliated entities. The corporation shall have the
1748	authority to pledge assessments, projected recoveries from the
1749	Florida Hurricane Catastrophe Fund, other reinsurance
1750	recoverables, market equalization and other surcharges, and
1751	other funds available to the corporation as security for bonds
1752	or other indebtedness. In recognition of s. 10, Art. I of the
1753	State Constitution, prohibiting the impairment of obligations of
1754	contracts, it is the intent of the Legislature that no action be
1755	taken whose purpose is to impair any bond indenture or financing
1756	agreement or any revenue source committed by contract to such
1757	bond or other indebtedness.
1758	4.a.  Must require that the corporation operate subject to
1759	the supervision and approval of a board of governors consisting
1760	of eight individuals who are residents of this state, from
1761	different geographical areas of this state. The Governor, the
1762	Chief Financial Officer, the President of the Senate, and the
1763	Speaker of the House of Representatives shall each appoint two
1764	members of the board. At least one of the two members appointed
1765	by each appointing officer must have demonstrated expertise in
1766	insurance. The Chief Financial Officer shall designate one of
1767	the appointees as chair. All board members serve at the pleasure
1768	of the appointing officer. All members of the board of governors
1769	are subject to removal at will by the officers who appointed
1770	them. Except as otherwise provided, all board members, including
1771	the chair, must be appointed to serve for 3-year terms beginning
1772	annually on a date designated by the plan. However, for the
1773	first term beginning on or after July 1, 2009, each appointing
1774	officer shall appoint one member of the board for a 2-year term
1775	and one member for a 3-year term. Any board vacancy shall be
1776	filled for the unexpired term by the appointing officer. The
1777	Chief Financial Officer shall appoint a technical advisory group
1778	to provide information and advice to the board of governors in
1779	connection with the board's duties under this subsection. The
1780	executive director and senior managers of the corporation shall
1781	be engaged by the board and serve at the pleasure of the board.
1782	Any executive director appointed on or after July 1, 2006, is
1783	subject to confirmation by the Senate. The executive director is
1784	responsible for employing other staff as the corporation may
1785	require, subject to review and concurrence by the board.
1786	b.  The board shall create a Market Accountability Advisory
1787	Committee to assist the corporation in developing awareness of
1788	its rates and its customer and agent service levels in
1789	relationship to the voluntary market insurers writing similar
1790	coverage. The members of the advisory committee shall consist of
1791	the following 11 persons, one of whom must be elected chair by
1792	the members of the committee: four representatives, one
1793	appointed by the Florida Association of Insurance Agents, one by
1794	the Florida Association of Insurance and Financial Advisors, one
1795	by the Professional Insurance Agents of Florida, and one by the
1796	Latin American Association of Insurance Agencies; three
1797	representatives appointed by the insurers with the three highest
1798	voluntary market share of residential property insurance
1799	business in the state; one representative from the Office of
1800	Insurance Regulation; one consumer appointed by the board who is
1801	insured by the corporation at the time of appointment to the
1802	committee; one representative appointed by the Florida
1803	Association of Realtors; and one representative appointed by the
1804	Florida Bankers Association. All members must serve for 3-year
1805	terms and may serve for consecutive terms. The committee shall
1806	report to the corporation at each board meeting on insurance
1807	market issues which may include rates and rate competition with
1808	the voluntary market; service, including policy issuance, claims
1809	processing, and general responsiveness to policyholders,
1810	applicants, and agents; and matters relating to depopulation.
1811	5.  Must provide a procedure for determining the
1812	eligibility of a risk for coverage, as follows:
1813	a.  Subject to the provisions of s. 627.3517, with respect
1814	to personal lines residential risks, if the risk is offered
1815	coverage from an authorized insurer at the insurer's approved
1816	rate under either a standard policy including wind coverage or,
1817	if consistent with the insurer's underwriting rules as filed
1818	with the office, a basic policy including wind coverage, for a
1819	new application to the corporation for coverage, the risk is not
1820	eligible for any policy issued by the corporation unless the
1821	premium for coverage from the authorized insurer is more than 15
1822	percent greater than the premium for comparable coverage from
1823	the corporation. If the risk is not able to obtain any such
1824	offer, the risk is eligible for either a standard policy
1825	including wind coverage or a basic policy including wind
1826	coverage issued by the corporation; however, if the risk could
1827	not be insured under a standard policy including wind coverage
1828	regardless of market conditions, the risk shall be eligible for
1829	a basic policy including wind coverage unless rejected under
1830	subparagraph 8. However, with regard to a policyholder of the
1831	corporation or a policyholder removed from the corporation
1832	through an assumption agreement until the end of the assumption
1833	period, the policyholder remains eligible for coverage from the
1834	corporation regardless of any offer of coverage from an
1835	authorized insurer or surplus lines insurer. The corporation
1836	shall determine the type of policy to be provided on the basis
1837	of objective standards specified in the underwriting manual and
1838	based on generally accepted underwriting practices.
1839	(I)  If the risk accepts an offer of coverage through the
1840	market assistance plan or an offer of coverage through a
1841	mechanism established by the corporation before a policy is
1842	issued to the risk by the corporation or during the first 30
1843	days of coverage by the corporation, and the producing agent who
1844	submitted the application to the plan or to the corporation is
1845	not currently appointed by the insurer, the insurer shall:
1846	(A)  Pay to the producing agent of record of the policy,
1847	for the first year, an amount that is the greater of the
1848	insurer's usual and customary commission for the type of policy
1849	written or a fee equal to the usual and customary commission of
1850	the corporation; or
1851	(B)  Offer to allow the producing agent of record of the
1852	policy to continue servicing the policy for a period of not less
1853	than 1 year and offer to pay the agent the greater of the
1854	insurer's or the corporation's usual and customary commission
1855	for the type of policy written.
1856
1857	If the producing agent is unwilling or unable to accept
1858	appointment, the new insurer shall pay the agent in accordance
1859	with sub-sub-sub-subparagraph (A).
1860	(II)  When the corporation enters into a contractual
1861	agreement for a take-out plan, the producing agent of record of
1862	the corporation policy is entitled to retain any unearned
1863	commission on the policy, and the insurer shall:
1864	(A)  Pay to the producing agent of record of the
1865	corporation policy, for the first year, an amount that is the
1866	greater of the insurer's usual and customary commission for the
1867	type of policy written or a fee equal to the usual and customary
1868	commission of the corporation; or
1869	(B)  Offer to allow the producing agent of record of the
1870	corporation policy to continue servicing the policy for a period
1871	of not less than 1 year and offer to pay the agent the greater
1872	of the insurer's or the corporation's usual and customary
1873	commission for the type of policy written.
1874
1875	If the producing agent is unwilling or unable to accept
1876	appointment, the new insurer shall pay the agent in accordance
1877	with sub-sub-sub-subparagraph (A).
1878	b.  With respect to commercial lines residential risks, for
1879	a new application to the corporation for coverage, if the risk
1880	is offered coverage under a policy including wind coverage from
1881	an authorized insurer at its approved rate, the risk is not
1882	eligible for any policy issued by the corporation unless the
1883	premium for coverage from the authorized insurer is more than 15
1884	percent greater than the premium for comparable coverage from
1885	the corporation. If the risk is not able to obtain any such
1886	offer, the risk is eligible for a policy including wind coverage
1887	issued by the corporation. However, with regard to a
1888	policyholder of the corporation or a policyholder removed from
1889	the corporation through an assumption agreement until the end of
1890	the assumption period, the policyholder remains eligible for
1891	coverage from the corporation regardless of any offer of
1892	coverage from an authorized insurer or surplus lines insurer.
1893	(I)  If the risk accepts an offer of coverage through the
1894	market assistance plan or an offer of coverage through a
1895	mechanism established by the corporation before a policy is
1896	issued to the risk by the corporation or during the first 30
1897	days of coverage by the corporation, and the producing agent who
1898	submitted the application to the plan or the corporation is not
1899	currently appointed by the insurer, the insurer shall:
1900	(A)  Pay to the producing agent of record of the policy,
1901	for the first year, an amount that is the greater of the
1902	insurer's usual and customary commission for the type of policy
1903	written or a fee equal to the usual and customary commission of
1904	the corporation; or
1905	(B)  Offer to allow the producing agent of record of the
1906	policy to continue servicing the policy for a period of not less
1907	than 1 year and offer to pay the agent the greater of the
1908	insurer's or the corporation's usual and customary commission
1909	for the type of policy written.
1910
1911	If the producing agent is unwilling or unable to accept
1912	appointment, the new insurer shall pay the agent in accordance
1913	with sub-sub-sub-subparagraph (A).
1914	(II)  When the corporation enters into a contractual
1915	agreement for a take-out plan, the producing agent of record of
1916	the corporation policy is entitled to retain any unearned
1917	commission on the policy, and the insurer shall:
1918	(A)  Pay to the producing agent of record of the
1919	corporation policy, for the first year, an amount that is the
1920	greater of the insurer's usual and customary commission for the
1921	type of policy written or a fee equal to the usual and customary
1922	commission of the corporation; or
1923	(B)  Offer to allow the producing agent of record of the
1924	corporation policy to continue servicing the policy for a period
1925	of not less than 1 year and offer to pay the agent the greater
1926	of the insurer's or the corporation's usual and customary
1927	commission for the type of policy written.
1928
1929	If the producing agent is unwilling or unable to accept
1930	appointment, the new insurer shall pay the agent in accordance
1931	with sub-sub-sub-subparagraph (A).
1932	c.  For purposes of determining comparable coverage under
1933	sub-subparagraphs a. and b., the comparison shall be based on
1934	those forms and coverages that are reasonably comparable. The
1935	corporation may rely on a determination of comparable coverage
1936	and premium made by the producing agent who submits the
1937	application to the corporation, made in the agent's capacity as
1938	the corporation's agent. A comparison may be made solely of the
1939	premium with respect to the main building or structure only on
1940	the following basis: the same coverage A or other building
1941	limits; the same percentage hurricane deductible that applies on
1942	an annual basis or that applies to each hurricane for commercial
1943	residential property; the same percentage of ordinance and law
1944	coverage, if the same limit is offered by both the corporation
1945	and the authorized insurer; the same mitigation credits, to the
1946	extent the same types of credits are offered both by the
1947	corporation and the authorized insurer; the same method for loss
1948	payment, such as replacement cost or actual cash value, if the
1949	same method is offered both by the corporation and the
1950	authorized insurer in accordance with underwriting rules; and
1951	any other form or coverage that is reasonably comparable as
1952	determined by the board. If an application is submitted to the
1953	corporation for wind-only coverage in the high-risk account, the
1954	premium for the corporation's wind-only policy plus the premium
1955	for the ex-wind policy that is offered by an authorized insurer
1956	to the applicant shall be compared to the premium for multiperil
1957	coverage offered by an authorized insurer, subject to the
1958	standards for comparison specified in this subparagraph. If the
1959	corporation or the applicant requests from the authorized
1960	insurer a breakdown of the premium of the offer by types of
1961	coverage so that a comparison may be made by the corporation or
1962	its agent and the authorized insurer refuses or is unable to
1963	provide such information, the corporation may treat the offer as
1964	not being an offer of coverage from an authorized insurer at the
1965	insurer's approved rate.
1966	6.  Must include rules for classifications of risks and
1967	rates therefor.
1968	7.  Must provide that if premium and investment income for
1969	an account attributable to a particular calendar year are in
1970	excess of projected losses and expenses for the account
1971	attributable to that year, such excess shall be held in surplus
1972	in the account. Such surplus shall be available to defray
1973	deficits in that account as to future years and shall be used
1974	for that purpose prior to assessing assessable insurers and
1975	assessable insureds as to any calendar year.
1976	8.  Must provide objective criteria and procedures to be
1977	uniformly applied for all applicants in determining whether an
1978	individual risk is so hazardous as to be uninsurable. In making
1979	this determination and in establishing the criteria and
1980	procedures, the following shall be considered:
1981	a.  Whether the likelihood of a loss for the individual
1982	risk is substantially higher than for other risks of the same
1983	class; and
1984	b.  Whether the uncertainty associated with the individual
1985	risk is such that an appropriate premium cannot be determined.
1986
1987	The acceptance or rejection of a risk by the corporation shall
1988	be construed as the private placement of insurance, and the
1989	provisions of chapter 120 shall not apply.
1990	9.  Must provide that the corporation shall make its best
1991	efforts to procure catastrophe reinsurance at reasonable rates,
1992	to cover its projected 100-year probable maximum loss as
1993	determined by the board of governors.
1994	10.  The policies issued by the corporation must provide
1995	that, if the corporation or the market assistance plan obtains
1996	an offer from an authorized insurer to cover the risk at its
1997	approved rates, the risk is no longer eligible for renewal
1998	through the corporation, except as otherwise provided in this
1999	subsection.
2000	11.  Corporation policies and applications must include a
2001	notice that the corporation policy could, under this section, be
2002	replaced with a policy issued by an authorized insurer that does
2003	not provide coverage identical to the coverage provided by the
2004	corporation. The notice shall also specify that acceptance of
2005	corporation coverage creates a conclusive presumption that the
2006	applicant or policyholder is aware of this potential.
2007	12.  May establish, subject to approval by the office,
2008	different eligibility requirements and operational procedures
2009	for any line or type of coverage for any specified county or
2010	area if the board determines that such changes to the
2011	eligibility requirements and operational procedures are
2012	justified due to the voluntary market being sufficiently stable
2013	and competitive in such area or for such line or type of
2014	coverage and that consumers who, in good faith, are unable to
2015	obtain insurance through the voluntary market through ordinary
2016	methods would continue to have access to coverage from the
2017	corporation. When coverage is sought in connection with a real
2018	property transfer, such requirements and procedures shall not
2019	provide for an effective date of coverage later than the date of
2020	the closing of the transfer as established by the transferor,
2021	the transferee, and, if applicable, the lender.
2022	13.  Must provide that, with respect to the high-risk
2023	account, any assessable insurer with a surplus as to
2024	policyholders of $25 million or less writing 25 percent or more
2025	of its total countrywide property insurance premiums in this
2026	state may petition the office, within the first 90 days of each
2027	calendar year, to qualify as a limited apportionment company. A
2028	regular assessment levied by the corporation on a limited
2029	apportionment company for a deficit incurred by the corporation
2030	for the high-risk account in 2006 or thereafter may be paid to
2031	the corporation on a monthly basis as the assessments are
2032	collected by the limited apportionment company from its insureds
2033	pursuant to s. 627.3512, but the regular assessment must be paid
2034	in full within 12 months after being levied by the corporation.
2035	A limited apportionment company shall collect from its
2036	policyholders any emergency assessment imposed under sub-
2037	subparagraph (b)3.d. The plan shall provide that, if the office
2038	determines that any regular assessment will result in an
2039	impairment of the surplus of a limited apportionment company,
2040	the office may direct that all or part of such assessment be
2041	deferred as provided in subparagraph (p)4. However, there shall
2042	be no limitation or deferment of an emergency assessment to be
2043	collected from policyholders under sub-subparagraph (b)3.d.
2044	14.  Must provide that the corporation appoint as its
2045	licensed agents only those agents who also hold an appointment
2046	as defined in s. 626.015(3) with an insurer who at the time of
2047	the agent's initial appointment by the corporation is authorized
2048	to write and is actually writing personal lines residential
2049	property coverage, commercial residential property coverage, or
2050	commercial nonresidential property coverage within the state.
2051	15.  Must provide, by July 1, 2007, a premium payment plan
2052	option to its policyholders which allows at a minimum for
2053	quarterly and semiannual payment of premiums. A monthly payment
2054	plan may, but is not required to, be offered.
2055	16.  Must limit coverage on mobile homes or manufactured
2056	homes built prior to 1994 to actual cash value of the dwelling
2057	rather than replacement costs of the dwelling.
2058	17.  May provide such limits of coverage as the board
2059	determines, consistent with the requirements of this subsection.
2060	18.  May require commercial property to meet specified
2061	hurricane mitigation construction features as a condition of
2062	eligibility for coverage.
2063	(m)1.  Rates for coverage provided by the corporation shall
2064	be actuarially sound and subject to the requirements of s.
2065	627.062, except as otherwise provided in this paragraph. The
2066	corporation shall file its recommended rates with the office at
2067	least annually. The corporation shall provide any additional
2068	information regarding the rates which the office requires. The
2069	office shall consider the recommendations of the board and issue
2070	a final order establishing the rates for the corporation within
2071	45 days after the recommended rates are filed. The corporation
2072	may not pursue an administrative challenge or judicial review of
2073	the final order of the office.
2074	2.  In addition to the rates otherwise determined pursuant
2075	to this paragraph, the corporation shall impose and collect an
2076	amount equal to the premium tax provided for in s. 624.509 to
2077	augment the financial resources of the corporation.
2078	3.  After the public hurricane loss-projection model under
2079	s. 627.06281 has been found to be accurate and reliable by the
2080	Florida Commission on Hurricane Loss Projection Methodology,
2081	that model shall serve as the minimum benchmark for determining
2082	the windstorm portion of the corporation's rates. This
2083	subparagraph does not require or allow the corporation to adopt
2084	rates lower than the rates otherwise required or allowed by this
2085	paragraph.
2086	4.  The rate filings for the corporation which were
2087	approved by the office and which took effect January 1, 2007,
2088	are rescinded, except for those rates that were lowered. As soon
2089	as possible, the corporation shall begin using the lower rates
2090	that were in effect on December 31, 2006, and shall provide
2091	refunds to policyholders who have paid higher rates as a result
2092	of that rate filing. The rates in effect on December 31, 2006,
2093	shall remain in effect for the 2007 and 2008 calendar years
2094	except for any rate change that results in a lower rate. The
2095	next rate change that may increase rates shall take effect
2096	pursuant to a new rate filing recommended by the corporation and
2097	established by the office, subject to the requirements of this
2098	paragraph.
2099	5.  Beginning on July 15, 2009, and each year thereafter,
2100	the corporation must make a recommended actuarially sound rate
2101	filing for each personal and commercial line of business it
2102	writes, to be effective no earlier than January 1, 2010.
2103	6.  The Legislature finds that it is in the public interest
2104	to ensure that actuarially sound rates for coverage by the
2105	corporation be implemented incrementally to provide rate
2106	stability and predictability to its policyholders.
2107	7.  Beginning on or after January 1, 2010, the corporation
2108	shall begin to implement actuarially sound rates for each
2109	commercial and personal line of business it writes, which may
2110	not exceed an average statewide increase of 10 percent or exceed
2111	20 percent for any single policy issued by the corporation,
2112	excluding coverage changes and surcharges.
2113	8.  The corporation's incremental implementation of rates
2114	as prescribed in subparagraph 7. shall cease for any line of
2115	business written by the corporation after actuarially sound
2116	rates as prescribed in subparagraph 1. are achieved. Thereafter,
2117	the corporation shall annually make a recommended actuarially
2118	sound rate filing for each commercial and personal line of
2119	business it writes.
2120	9.  In addition to the rate increase required pursuant to
2121	subparagraph 7., the corporation may increase its rates an
2122	amount sufficient to recoup additional reimbursement premium
2123	paid to the Florida Hurricane Catastrophe Fund due to the
2124	application of a cash build-up factor.
2125	10.  Beginning April 1, 2010, and each quarter thereafter,
2126	the corporation shall transfer 10 percent of the funds received
2127	from the rate increase prescribed by subparagraph 7. to the
2128	Insurance Regulatory Trust Fund in the Department of Financial
2129	Services. The corporation's transfer of such funds shall cease
2130	upon the corporation's implementation of actuarially sound rates
2131	as prescribed in subparagraph 1.
2132	(x)  It is the intent of the Legislature that the
2133	amendments to this subsection enacted in 2002 should, over time,
2134	reduce the probable maximum windstorm losses in the residual
2135	markets and should reduce the potential assessments to be levied
2136	on property insurers and policyholders statewide. In furtherance
2137	of this intent:
2138	1.  The board shall, on or before February 1 of each year,
2139	provide a report to the President of the Senate and the Speaker
2140	of the House of Representatives showing the reduction or
2141	increase in the 100-year probable maximum loss attributable to
2142	wind-only coverages and the quota share program under this
2143	subsection combined, as compared to the benchmark 100-year
2144	probable maximum loss of the Florida Windstorm Underwriting
2145	Association. For purposes of this paragraph, the benchmark 100-
2146	year probable maximum loss of the Florida Windstorm Underwriting
2147	Association shall be the calculation dated February 2001 and
2148	based on November 30, 2000, exposures. In order to ensure
2149	comparability of data, the board shall use the same methods for
2150	calculating its probable maximum loss as were used to calculate
2151	the benchmark probable maximum loss.
2152	2.  Beginning February 1, 2010, if the report under
2153	subparagraph 1. for any year indicates that the 100-year
2154	probable maximum loss attributable to wind-only coverages and
2155	the quota share program combined does not reflect a reduction of
2156	at least 25 percent from the benchmark, the board shall reduce
2157	the boundaries of the high-risk area eligible for wind-only
2158	coverages under this subsection in a manner calculated to reduce
2159	such probable maximum loss to an amount at least 25 percent
2160	below the benchmark.
2161	3.  Beginning February 1, 2015, if the report under
2162	subparagraph 1. for any year indicates that the 100-year
2163	probable maximum loss attributable to wind-only coverages and
2164	the quota share program combined does not reflect a reduction of
2165	at least 50 percent from the benchmark, the boundaries of the
2166	high-risk area eligible for wind-only coverages under this
2167	subsection shall be reduced by the elimination of any area that
2168	is not seaward of a line 1,000 feet inland from the Intracoastal
2169	Waterway.
2170	Section 14.  Subsection (2) of section 627.711, Florida
2171	Statutes, is amended, and subsection (3) is added to that
2172	section, to read:
2173	627.711  Notice of premium discounts for hurricane loss
2174	mitigation; uniform mitigation verification inspection form.--
2175	(2)(a)  By July 1, 2007, the Financial Services Commission
2176	shall develop by rule a uniform mitigation verification
2177	inspection form that shall be used by all insurers when
2178	submitted by policyholders for the purpose of factoring
2179	discounts for wind insurance. In developing the form, the
2180	commission shall seek input from insurance, construction, and
2181	building code representatives. Further, the commission shall
2182	provide guidance as to the length of time the inspection results
2183	are valid. An insurer shall accept as valid a uniform mitigation
2184	verification form certified by the Department of Financial
2185	Services or signed by:
2186	(a)  A hurricane mitigation inspector employed by an
2187	approved My Safe Florida Home wind certification entity;
2188	1.(b)  A building code inspector certified under s.
2189	468.607;
2190	2.(c)  A general, building, or residential contractor
2191	licensed under s. 489.111;
2192	3.(d)  A professional engineer licensed under s. 471.015
2193	who has passed the appropriate equivalency test of the Building
2194	Code Training Program as required by s. 553.841; or
2195	4.(e)  A professional architect licensed under s. 481.213.
2196	(b)  An insurer may contract with inspection firms at the
2197	insurer's expense to review mitigation verification forms and to
2198	reinspect properties for which the insurer receives mitigation
2199	verification forms to ensure that the forms are valid.
2200	(3)  An individual or entity who knowingly provides or
2201	utters a false or fraudulent mitigation verification form with
2202	the intent to obtain or receive a discount on an insurance
2203	premium to which the individual or entity is not entitled
2204	commits a misdemeanor of the first degree, punishable as
2205	provided in s. 775.082 or s. 775.083.
2206	Section 15.  Subsection (1) and paragraph (c) of subsection
2207	(2) of section 627.712, Florida Statutes, are amended to read:
2208	627.712  Residential windstorm coverage required;
2209	availability of exclusions for windstorm or contents.--
2210	(1)  An insurer issuing a residential property insurance
2211	policy must provide windstorm coverage. Except as provided in
2212	paragraph (2)(c), this section does not apply with respect to
2213	risks that are eligible for wind-only coverage from Citizens
2214	Property Insurance Corporation under s. 627.351(6) and with
2215	respect to risks that are not eligible for coverage from
2216	Citizens Property Insurance Corporation under s. 627.351(6)(a)3.
2217	or 5. A risk ineligible for Citizens coverage under s.
2218	627.351(6)(a)3. or 5. is exempt from the requirements of this
2219	section only if the risk is located within the boundaries of the
2220	high-risk account of the corporation.
2221	(2)  A property insurer must make available, at the option
2222	of the policyholder, an exclusion of windstorm coverage.
2223	(c)  If the residential structure is eligible for wind-only
2224	coverage from Citizens Property Insurance Corporation, An
2225	insurer nonrenewing a policy and issuing a replacement policy,
2226	or issuing a new policy, that does not provide wind coverage
2227	shall provide a notice to the mortgageholder or lienholder
2228	indicating the policyholder has elected coverage that does not
2229	cover wind.
2230	Section 16.  Section 631.65, Florida Statutes, is amended
2231	to read:
2232	631.65  Prohibited advertisement or solicitation.--No
2233	person shall make, publish, disseminate, circulate, or place
2234	before the public, or cause, directly or indirectly, to be made,
2235	published, disseminated, circulated, or placed before the
2236	public, in a newspaper, magazine, or other publication, or in
2237	the form of a notice, circular, pamphlet, letter, or poster, or
2238	over any radio station or television station, or in any other
2239	way, any advertisement, announcement, or statement which uses
2240	the existence of the insurance guaranty association for the
2241	purpose of sales, solicitation, or inducement to purchase any
2242	form of insurance covered under this part. However, nothing in
2243	this section may be construed to prevent a duly licensed
2244	insurance agent from providing explanations concerning the
2245	existence or application of the insurance guaranty association
2246	to policyholders, prospective policyholders, or applicants for
2247	coverage.
2248	Section 17.  The My Safe Florida Home Program specified in
2249	s. 215.5586, Florida Statutes, shall use the funds transferred
2250	to the Insurance Regulatory Trust Fund pursuant to s.
2251	627.351(6)(m)10., Florida Statutes, solely for the provision of
2252	mitigation grants in accordance with s. 215.5586(2), Florida
2253	Statutes, to policyholders of Citizens Property Insurance
2254	Corporation on June 1, 2009, who are otherwise eligible for
2255	grants from the My Safe Florida Home Program. The department
2256	shall establish a separate account within the trust fund for
2257	accounting purposes.
2258	Section 18.  Section 626.854, Florida Statutes, is amended
2259	to read:
2260	626.854  "Public adjuster" defined; prohibitions.--The
2261	Legislature finds that it is necessary for the protection of the
2262	public to regulate public insurance adjusters and to prevent the
2263	unauthorized practice of law.
2264	(1)  A "public adjuster" is any person, except a duly
2265	licensed attorney at law as hereinafter in s. 626.860 provided,
2266	who, for money, commission, or any other thing of value,
2267	prepares, completes, or files an insurance claim form for an
2268	insured or third-party claimant or who, for money, commission,
2269	or any other thing of value, acts or aids in any manner on
2270	behalf of an insured or third-party claimant in negotiating for
2271	or effecting the settlement of a claim or claims for loss or
2272	damage covered by an insurance contract or who advertises for
2273	employment as an adjuster of such claims, and also includes any
2274	person who, for money, commission, or any other thing of value,
2275	solicits, investigates, or adjusts such claims on behalf of any
2276	such public adjuster.
2277	(2)  This definition does not apply to:
2278	(a)  A licensed health care provider or employee thereof
2279	who prepares or files a health insurance claim form on behalf of
2280	a patient.
2281	(b)  A person who files a health claim on behalf of another
2282	and does so without compensation.
2283	(3)  A public adjuster may not give legal advice. A public
2284	adjuster may not act on behalf of or aid any person in
2285	negotiating or settling a claim relating to bodily injury,
2286	death, or noneconomic damages.
2287	(4)  For purposes of this section, the term "insured"
2288	includes only the policyholder and any beneficiaries named or
2289	similarly identified in the policy.
2290	(5)  A public adjuster may not directly or indirectly
2291	through any other person or entity solicit an insured or
2292	claimant by any means except on Monday through Saturday of each
2293	week and only between the hours of 8 a.m. and 8 p.m. on those
2294	days.
2295	(6)  A public adjuster may not directly or indirectly
2296	through any other person or entity initiate contact or engage in
2297	face-to-face or telephonic solicitation or enter into a contract
2298	with any insured or claimant under an insurance policy until at
2299	least 48 hours after the occurrence of an event that may be the
2300	subject of a claim under the insurance policy unless contact is
2301	initiated by the insured or claimant.
2302	(7)  An insured or claimant may cancel a public adjuster's
2303	contract to adjust a claim without penalty or obligation within
2304	3 business days after the date on which the contract is executed
2305	or within 3 business days after the date on which the insured or
2306	claimant has notified the insurer of the claim, by phone or in
2307	writing, whichever is later. The public adjuster's contract
2308	shall disclose to the insured or claimant his or her right to
2309	cancel the contract and advise the insured or claimant that
2310	notice of cancellation must be submitted in writing and sent by
2311	certified mail, return receipt requested, or other form of
2312	mailing which provides proof thereof, to the public adjuster at
2313	the address specified in the contract; provided, during any
2314	state of emergency as declared by the Governor and for a period
2315	of 1 year after the date of loss, the insured or claimant shall
2316	have 5 business days after the date on which the contract is
2317	executed to cancel a public adjuster's contract.
2318	(8)  It is an unfair and deceptive insurance trade practice
2319	pursuant to s. 626.9541 for a public adjuster or any other
2320	person to circulate or disseminate any advertisement,
2321	announcement, or statement containing any assertion,
2322	representation, or statement with respect to the business of
2323	insurance which is untrue, deceptive, or misleading.
2324	(9)  A public adjuster, a public adjuster apprentice, or
2325	any person or entity acting on behalf of a public adjuster or
2326	public adjuster apprentice may not give or offer to give a
2327	monetary loan or advance to a client or prospective client.
2328	(10)  A public adjuster, public adjuster apprentice, or any
2329	individual or entity acting on behalf of a public adjuster or
2330	public adjuster apprentice may not give or offer to give,
2331	directly or indirectly, any article of merchandise having a
2332	value in excess of $25 to any individual for the purpose of
2333	advertising or as an inducement to entering into a contract with
2334	a public adjuster.
2335	(11)(a)  If a public adjuster enters into a contract with
2336	an insured or claimant to reopen a claim or to file a
2337	supplemental claim that seeks additional payments for a claim
2338	that has been previously paid in part or in full or settled by
2339	the insurer, the public adjuster may not charge, agree to, or
2340	accept any compensation, payment, commission, fee, or other
2341	thing of value based on a previous settlement or previous claim
2342	payments by the insurer for the same cause of loss. The charge,
2343	compensation, payment, commission, fee, or other thing of value
2344	may be based only on the claim payments or settlement obtained
2345	through the work of the public adjuster after entering into the
2346	contract with the insured or claimant. The contracts described
2347	in this paragraph are not subject to the limitations in
2348	paragraph (b).
2349	(b)  A public adjuster may not charge, agree to, or accept
2350	any compensation, payment, commission, fee, or other thing of
2351	value in excess of:
2352	1.  Ten percent of the amount of insurance claim payments
2353	by the insurer for claims based on events that are the subject
2354	of a declaration of a state of emergency by the Governor. This
2355	provision applies to claims made during the period of 1 year
2356	after the declaration of emergency.
2357	2.  Twenty percent of the amount of all other insurance
2358	claim payments.
2359	(12)  Each public adjuster shall provide to the claimant or
2360	insured a written estimate of the loss to assist in the
2361	submission of a proof of loss or any other claim for payment of
2362	insurance proceeds. The public adjuster shall retain such
2363	written estimate for at least 5 years and shall make such
2364	estimate available to the claimant or insured and the department
2365	upon request.
2366	(13)  A public adjuster, public adjuster apprentice, or any
2367	person acting on behalf of a public adjuster or apprentice may
2368	not accept referrals of business from any person with whom the
2369	public adjuster conducts business if there is any form or manner
2370	of agreement to compensate the person, whether directly or
2371	indirectly, for referring business to the public adjuster. A
2372	public adjuster may not compensate any person, except for
2373	another public adjuster, whether directly or indirectly, for the
2374	principal purpose of referring business to the public adjuster.
2375
2376	The provisions of subsections (5)-(13) (5)-(12) apply only to
2377	residential property insurance policies and condominium
2378	association policies as defined in s. 718.111(11).
2379	Section 19.  Paragraph (e) of subsection (1) of section
2380	626.865, Florida Statutes, is amended to read:
2381	626.865  Public adjuster's qualifications, bond.--
2382	(1)  The department shall issue a license to an applicant
2383	for a public adjuster's license upon determining that the
2384	applicant has paid the applicable fees specified in s. 624.501
2385	and possesses the following qualifications:
2386	(e)  Has passed the required written examination.
2387	Section 20.  Section 626.8651, Florida Statutes, is amended
2388	to read:
2389	626.8651  Public adjuster apprentice license;
2390	qualifications.--
2391	(1)  The department shall issue a license as a public
2392	adjuster apprentice to an applicant who is:
2393	(a)  A natural person at least 18 years of age.
2394	(b)  A United States citizen or legal alien who possesses
2395	work authorization from the United States Bureau of Citizenship
2396	and Immigration Services and is a resident of this state.
2397	(c)  Trustworthy and has such business reputation as would
2398	reasonably ensure that the applicant will conduct business as a
2399	public adjuster apprentice fairly and in good faith and without
2400	detriment to the public.
2401	(2)  All applicable license fees, as prescribed in s.
2402	624.501, must be paid in full before issuance of the license.
2403	(3)  The applicant must have passed the required written
2404	examination before issuance of the license.
2405	(4)  At the time of application for license as a public
2406	adjuster apprentice, each applicant must have completed the
2407	training and received the Accredited Claims Adjuster designation
2408	which provides experience, training, and instruction concerning
2409	the adjusting of damages and losses under insurance contracts,
2410	other than life and annuity contracts, provides education on the
2411	terms and effects of the provisions of those types of insurance
2412	contracts, and provides knowledge of the laws of this state
2413	relating to such contracts as to enable and qualify him or her
2414	to engage in the business of a public adjuster apprentice fairly
2415	and without injury to the public or any member of the public
2416	with whom the applicant may conduct business as a public
2417	adjuster apprentice.
2418	(5)(3)  At the time of application for license as a public
2419	adjuster apprentice, the applicant shall file with the
2420	department a bond executed and issued by a surety insurer
2421	authorized to transact such business in this state in the amount
2422	of $50,000, conditioned upon the faithful performance of his or
2423	her duties as a public adjuster apprentice under the license for
2424	which the applicant has applied, and thereafter maintain the
2425	bond unimpaired throughout the existence of the license and for
2426	at least 1 year after termination of the license. The bond shall
2427	be in favor of the department and shall specifically authorize
2428	recovery by the department of the damages sustained in case the
2429	licensee commits fraud or unfair practices in connection with
2430	his or her business as a public adjuster apprentice. The
2431	aggregate liability of the surety for all such damages may not
2432	exceed the amount of the bond, and the bond may not be
2433	terminated by the issuing insurer unless written notice of at
2434	least 30 days is given to the licensee and filed with the
2435	department.
2436	(6)(4)  A public adjuster apprentice shall complete at a
2437	minimum 100 hours of employment per month for 12 months of
2438	employment under the supervision of a licensed and appointed
2439	all-lines public adjuster in order to qualify for licensure as a
2440	public adjuster. The department may adopt rules that establish
2441	standards for such employment requirements.
2442	(7)(5)  An appointing public adjusting firm shall maintain
2443	no more than 12 public adjuster apprentices simultaneously;
2444	however, a supervising public adjuster shall be responsible for
2445	no more than 3 public adjuster apprentices simultaneously and
2446	accountable for the acts of all a public adjuster apprentices
2447	that apprentice which are related to transacting business as a
2448	public adjuster apprentice.
2449	(8)(6)  An apprentice license is effective for 18 months
2450	unless the license expires due to lack of maintaining an
2451	appointment; is surrendered by the licensee; is terminated,
2452	suspended, or revoked by the department; or is canceled by the
2453	department upon issuance of a public adjuster license. The
2454	department may not issue a public adjuster apprentice license to
2455	any individual who has held such a license in this state within
2456	2 years after expiration, surrender, termination, revocation, or
2457	cancellation of the license.
2458	(9)(7)  After completing the requirements for employment as
2459	a public adjuster apprentice, the licensee may file an
2460	application for a public adjuster license. The applicant and
2461	supervising public adjuster or public adjusting firm must each
2462	file a sworn affidavit, on a form prescribed by the department,
2463	verifying that the employment of the public adjuster apprentice
2464	meets the requirements of this section.
2465	(10)(8)  In no event shall a public adjuster apprentice
2466	licensed under this section perform any of the functions for
2467	which a public adjuster's license is required after expiration
2468	of the public adjuster apprentice license without having
2469	obtained a public adjuster license.
2470	(11)(9)  A public adjuster apprentice has the same
2471	authority as the licensed public adjuster or public adjusting
2472	firm that employs the apprentice except that an apprentice may
2473	not execute contracts for the services of a public adjuster or
2474	public adjusting firm and may not solicit contracts for the
2475	services except under the direct supervision and guidance of the
2476	supervisory public adjuster. An individual may not be, act as,
2477	or hold himself or herself out to be a public adjuster
2478	apprentice unless the individual is licensed and holds a current
2479	appointment by a licensed public all-lines adjuster or a public
2480	adjusting firm that employs a licensed all-lines public
2481	adjuster.
2482	Section 21.  Subsection (7) is added to section 627.7011,
2483	Florida Statutes, to read:
2484	627.7011  Homeowners' policies; offer of replacement cost
2485	coverage and law and ordinance coverage.--
2486	(7)  This section does not prohibit an insurer from
2487	exercising its right to repair damaged property in compliance
2488	with its policy and s. 627.702(7).
2489	Section 22.  By February 1, 2010, the Office of Program
2490	Policy Analysis and Government Accountability shall submit a
2491	report to the Speaker of the House of Representatives, the
2492	President of the Senate, the Commissioner of Insurance, the
2493	Chief Financial Officer, and the Governor reviewing the laws
2494	governing public adjusters as defined in s. 626.854, Florida
2495	Statutes.  The report shall include a review of relevant
2496	Citizens Property Insurance Corporation claims and statistics
2497	involving public adjusters, public adjuster claims submission
2498	practices, and a review of the laws of this state and rules
2499	governing public adjusters. The report shall also review state
2500	laws governing public adjusters throughout the United States.
2501	The review shall encompass a review of both catastrophe and
2502	noncatastrophe related claims, with a specific focus on new and
2503	supplemental or reopened catastrophe claims originated in 2009
2504	which relate to hurricanes that occurred in 2004 and 2005. The
2505	study shall review the effects on consumers of the laws of this
2506	state relating to public adjusters.
2507	Section 23.  In the interest of full disclosure and
2508	transparency to insurance policy owners and since most insurance
2509	policies sold in this state are subject to assessments to make
2510	up for the funding deficiencies of the Citizens Property
2511	Insurance Corporation or the Florida Hurricane Catastrophe Fund,
2512	the following warning shall be printed in bold type of not less
2513	than 16 points and shall be displayed on the declarations page
2514	or on the renewal notice of every insurance policy sold or
2515	issued in this state that is or may be subject to assessment by
2516	the Citizens Property Insurance Corporation or the Florida
2517	Hurricane Catastrophe Fund:
2518
2519	WARNING
2520	The premium you are about to pay may NOT be the full cost
2521	of this insurance policy. If a hurricane strikes Florida,
2522	you may be forced to pay additional moneys to offset the
2523	inability of the state-owned Citizens Property Insurance
2524	Corporation or the Florida Hurricane Catastrophe Fund to
2525	pay claims resulting from the losses due to the
2526	hurricane.
2527
2528	Section 24.  Paragraph (o) of subsection (1) of section
2529	626.9541, Florida Statutes, is amended to read:
2530	626.9541  Unfair methods of competition and unfair or
2531	deceptive acts or practices defined.--
2532	(1)  UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
2533	ACTS.--The following are defined as unfair methods of
2534	competition and unfair or deceptive acts or practices:
2535	(o)  Illegal dealings in premiums; excess or reduced
2536	charges for insurance.--
2537	1.  Knowingly collecting any sum as a premium or charge for
2538	insurance, which is not then provided, or is not in due course
2539	to be provided, subject to acceptance of the risk by the
2540	insurer, by an insurance policy issued by an insurer as
2541	permitted by this code.
2542	2.  Knowingly collecting as a premium or charge for
2543	insurance any sum in excess of or less than the premium or
2544	charge applicable to such insurance, in accordance with the
2545	applicable classifications and rates as filed with and approved
2546	by the office, and as specified in the policy; or, in cases when
2547	classifications, premiums, or rates are not required by this
2548	code to be so filed and approved, premiums and charges collected
2549	from a Florida resident in excess of or less than those
2550	specified in the policy and as fixed by the insurer. This
2551	provision shall not be deemed to prohibit the charging and
2552	collection, by surplus lines agents licensed under part VIII of
2553	this chapter, of the amount of applicable state and federal
2554	taxes, or fees as authorized by s. 626.916(4), in addition to
2555	the premium required by the insurer or the charging and
2556	collection, by licensed agents, of the exact amount of any
2557	discount or other such fee charged by a credit card facility in
2558	connection with the use of a credit card, as authorized by
2559	subparagraph (q)3., in addition to the premium required by the
2560	insurer. This subparagraph shall not be construed to prohibit
2561	collection of a premium for a universal life or a variable or
2562	indeterminate value insurance policy made in accordance with the
2563	terms of the contract.
2564	3.a.  Imposing or requesting an additional premium for a
2565	policy of motor vehicle liability, personal injury protection,
2566	medical payment, or collision insurance or any combination
2567	thereof or refusing to renew the policy solely because the
2568	insured was involved in a motor vehicle accident unless the
2569	insurer's file contains information from which the insurer in
2570	good faith determines that the insured was substantially at
2571	fault in the accident.
2572	b.  An insurer which imposes and collects such a surcharge
2573	or which refuses to renew such policy shall, in conjunction with
2574	the notice of premium due or notice of nonrenewal, notify the
2575	named insured that he or she is entitled to reimbursement of
2576	such amount or renewal of the policy under the conditions listed
2577	below and will subsequently reimburse him or her or renew the
2578	policy, if the named insured demonstrates that the operator
2579	involved in the accident was:
2580	(I)  Lawfully parked;
2581	(II)  Reimbursed by, or on behalf of, a person responsible
2582	for the accident or has a judgment against such person;
2583	(III)  Struck in the rear by another vehicle headed in the
2584	same direction and was not convicted of a moving traffic
2585	violation in connection with the accident;
2586	(IV)  Hit by a "hit-and-run" driver, if the accident was
2587	reported to the proper authorities within 24 hours after
2588	discovering the accident;
2589	(V)  Not convicted of a moving traffic violation in
2590	connection with the accident, but the operator of the other
2591	automobile involved in such accident was convicted of a moving
2592	traffic violation;
2593	(VI)  Finally adjudicated not to be liable by a court of
2594	competent jurisdiction;
2595	(VII)  In receipt of a traffic citation which was dismissed
2596	or nolle prossed; or
2597	(VIII)  Not at fault as evidenced by a written statement
2598	from the insured establishing facts demonstrating lack of fault
2599	which are not rebutted by information in the insurer's file from
2600	which the insurer in good faith determines that the insured was
2601	substantially at fault.
2602	c.  In addition to the other provisions of this
2603	subparagraph, an insurer may not fail to renew a policy if the
2604	insured has had only one accident in which he or she was at
2605	fault within the current 3-year period. However, an insurer may
2606	nonrenew a policy for reasons other than accidents in accordance
2607	with s. 627.728. This subparagraph does not prohibit nonrenewal
2608	of a policy under which the insured has had three or more
2609	accidents, regardless of fault, during the most recent 3-year
2610	period.
2611	4.  Imposing or requesting an additional premium for, or
2612	refusing to renew, a policy for motor vehicle insurance solely
2613	because the insured committed a noncriminal traffic infraction
2614	as described in s. 318.14 unless the infraction is:
2615	a.  A second infraction committed within an 18-month
2616	period, or a third or subsequent infraction committed within a
2617	36-month period.
2618	b.  A violation of s. 316.183, when such violation is a
2619	result of exceeding the lawful speed limit by more than 15 miles
2620	per hour.
2621	5.  Upon the request of the insured, the insurer and
2622	licensed agent shall supply to the insured the complete proof of
2623	fault or other criteria which justifies the additional charge or
2624	cancellation.
2625	6.  No insurer shall impose or request an additional
2626	premium for motor vehicle insurance, cancel or refuse to issue a
2627	policy, or refuse to renew a policy because the insured or the
2628	applicant is a handicapped or physically disabled person, so
2629	long as such handicap or physical disability does not
2630	substantially impair such person's mechanically assisted driving
2631	ability.
2632	7.  No insurer may cancel or otherwise terminate any
2633	insurance contract or coverage, or require execution of a
2634	consent to rate endorsement, during the stated policy term for
2635	the purpose of offering to issue, or issuing, a similar or
2636	identical contract or coverage to the same insured with the same
2637	exposure at a higher premium rate or continuing an existing
2638	contract or coverage with the same exposure at an increased
2639	premium.
2640	8.  No insurer may issue a nonrenewal notice on any
2641	insurance contract or coverage, or require execution of a
2642	consent to rate endorsement, for the purpose of offering to
2643	issue, or issuing, a similar or identical contract or coverage
2644	to the same insured at a higher premium rate or continuing an
2645	existing contract or coverage at an increased premium without
2646	meeting any applicable notice requirements.
2647	9.  No insurer shall, with respect to premiums charged for
2648	motor vehicle insurance, unfairly discriminate solely on the
2649	basis of age, sex, marital status, or scholastic achievement.
2650	10.  Imposing or requesting an additional premium for motor
2651	vehicle comprehensive or uninsured motorist coverage solely
2652	because the insured was involved in a motor vehicle accident or
2653	was convicted of a moving traffic violation.
2654	11.  No insurer shall cancel or issue a nonrenewal notice
2655	on any insurance policy or contract without complying with any
2656	applicable cancellation or nonrenewal provision required under
2657	the Florida Insurance Code.
2658	12.  No insurer shall impose or request an additional
2659	premium, cancel a policy, or issue a nonrenewal notice on any
2660	insurance policy or contract because of any traffic infraction
2661	when adjudication has been withheld and no points have been
2662	assessed pursuant to s. 318.14(9) and (10). However, this
2663	subparagraph does not apply to traffic infractions involving
2664	accidents in which the insurer has incurred a loss due to the
2665	fault of the insured.
2666	13.  Notwithstanding this paragraph, a licensed general
2667	lines agent may also collect a reasonable service charge, not to
2668	exceed $5, from the insured when the licensed general lines
2669	agent processes, as a convenience and accommodation to the
2670	insured, an installment payment from the insured to the
2671	insurance company or premium finance company when such payments
2672	can be made directly to the insurance company or premium finance
2673	company by the insured. In no case may an agent collect more
2674	than one service charge for any single payment, and a schedule
2675	of any such service charge must be prominently posted in the
2676	public area of the agency and also on the agency's website if a
2677	service charge is to be collected.
2678	Section 25.  Subsection (7) is added to section 624.46226,
2679	Florida Statutes, to read:
2680	624.46226  Public housing authorities self-insurance funds;
2681	exemption for taxation and assessments.--
2682	(7)  Reinsurance companies complying with s. 624.610 may
2683	issue coverage directly to a public housing authority self-
2684	insuring its liabilities under this section. A public housing
2685	authority purchasing reinsurance shall be considered an insurer
2686	for the sole purpose of entering into such reinsurance
2687	contracts. Contracts of reinsurance issued to public housing
2688	authorities self-insuring under this section shall receive the
2689	same tax treatment as reinsurance contracts issued to insurance
2690	companies. However, the purchase of reinsurance coverage by a
2691	public housing authority self-insuring under this section shall
2692	not be construed as authorization to otherwise act as an
2693	insurer.
2694	Section 26.  All rating agencies or rating services must
2695	clearly state in their public reports and ratings whether they
2696	allowed any reinsurance from the Florida Hurricane Catastrophe
2697	Fund to be counted as an asset of the rated entity.
2698	Section 27.  This act shall take effect upon becoming a
2699	law.
2700
2701
2702	-----------------------------------------------------
2703	T I T L E  A M E N D M E N T
2704	Remove lines 2194-2334 and insert:
2705	An act relating to property and casualty insurance; amending s.
2706	215.47, F.S.; authorizing the State Board of Administration to
2707	invest in certain revenue bonds under certain circumstances;
2708	amending s. 215.555, F.S., relating to the Florida Hurricane
2709	Catastrophe Fund; revising the dates of an insurer's contract
2710	year for purposes of calculating the insurer's retention;
2711	revising reimbursement contract coverage payment provisions;
2712	extending application of provisions relating to reimbursement
2713	contracts; revising the dates on which the State Board of
2714	Administration is required to publish a statement of the
2715	estimated borrowing capacity of the Florida Hurricane
2716	Catastrophe Fund; requiring the board to publish a statement of
2717	the estimated claims-paying capacity of the Florida Hurricane
2718	Catastrophe Fund; requiring a reimbursement premium formula to
2719	provide cash build-up factors for certain contract years;
2720	extending provisions relating to temporary increase in coverage
2721	limit operations for the fund; providing additional
2722	reimbursement requirements for temporary increase in coverage
2723	addenda for additional contract years; expanding the powers and
2724	duties of the board; specifying required increases in TICL
2725	reimbursement premiums for certain contract years; specifying
2726	nonapplication of cash build-up factors to TICL reimbursement
2727	premiums; deleting authority for the State Board of
2728	Administration to increase the claims-paying capacity of the
2729	fund; amending s. 215.5586, F.S., relating to the My Safe
2730	Florida Home Program; revising legislative intent; revising
2731	criteria for hurricane mitigation inspections; revising criteria
2732	for eligibility for a mitigation grant; expanding the list of
2733	improvements for which grants may be used; deleting provisions
2734	relating to no-interest loans; requiring that contracts valued
2735	at or greater than a specified amount be subject to review and
2736	approval by the Legislative Budget Commission; requiring the
2737	Department of Financial Services to implement a condominium
2738	weatherization and mitigation loan program for certain purposes;
2739	specifying program requirements; specifying an administration
2740	requirement for the program; requiring the department to adopt
2741	rules; amending s. 624.4622, F.S.; prohibiting withdrawal notice
2742	requirements of longer than 30 days for members of a local
2743	government self-insurance fund; requiring local government self-
2744	insurance funds to submit an affidavit to specified entities;
2745	specifying affidavit contents; amending s. 624.605, F.S.;
2746	revising the definition of the term "casualty insurance" to
2747	include certain debt cancellation products sold or leased by
2748	certain business entities; amending s.626.753, F.S.; prohibiting
2749	certain uses of commissions derived from the sale of crop hail
2750	or multiple-peril crop insurance which are shared between
2751	certain agents and certain production credit associations or
2752	federal land bank associations; providing penalties; providing
2753	that patronage dividends and other payments to members of
2754	production credit associations or federal land bank associations
2755	are unlawful rebates under certain circumstances; providing
2756	penalties for an agent who shares commissions with a production
2757	credit association or federal land bank association under
2758	certain circumstances; amending s. 626.9541, F.S.; specifying
2759	that certain patronage dividends and other payments are unfair
2760	methods of competition and unfair or deceptive acts; providing
2761	penalties; amending s. 627.062, F.S.; extending application of
2762	file and use filing requirements for certain property insurance
2763	filings; prohibiting the Office of Insurance Regulation from
2764	interfering with an insurer's right to solicit, sell, promote,
2765	or otherwise acquire policyholders and implement coverage;
2766	specifying limited application to certain rates; specifying that
2767	certain rate filings are not subject to office determination as
2768	excessive or unfairly discriminatory; providing limitations;
2769	providing a definition; prohibiting certain rate filings under
2770	certain circumstances; preserving the office's authority to
2771	disapprove certain rate filings under certain circumstances;
2772	providing procedures for insurers submitting certain rate
2773	filings; specifying nonapplication to certain types of
2774	insurance; amending s. 627.0621, F.S.; deleting a limitation on
2775	the application of the attorney-client privilege and work
2776	product doctrine in challenges to actions by the office relating
2777	to rate filings; amending s. 627.0628, F.S.; requiring the
2778	Florida Commission on Hurricane Loss Projection Methodology to
2779	hold public meetings for purposes of implementing certain
2780	windstorm mitigation discounts, credits, other rate
2781	differentials, and deductible reductions; requiring a report to
2782	the Governor, Cabinet, and Legislature; amending s. 627.0629,
2783	F.S.; requiring certain hurricane mitigation measure discounts,
2784	credits, and rate differentials to supersede certain other
2785	discounts, credits, and rate differentials; authorizing
2786	residential property insurers to include reinsurance costs
2787	without certain TICL adjustments; amending s. 627.0655, F.S.;
2788	discontinuing authorization for a premium discount for a
2789	policyholder having multiple policies from Citizens Property
2790	Insurance Corporation or a policy that has been removed from the
2791	corporation by another insurer; amending s. 627.351, F.S.;
2792	deleting application of certain personal lines residential
2793	property insurance requirements for wind-borne debris regions
2794	insured by the corporation; revising the basis of a surcharge to
2795	offset an account deficit; providing for members of the board of
2796	governors of the corporation to serve staggered terms; providing
2797	exceptions to actuarially sound rate requirements for the
2798	corporation; providing legislative findings; requiring the
2799	corporation to implement certain actuarially sound rates for
2800	certain lines of business; providing limitations; providing for
2801	cessation of certain rate increases upon implementation of
2802	actuarially sound rates; requiring the corporation to transfer
2803	certain funds from the rate increase to the Insurance Regulatory
2804	Trust Fund in the Department of Financial Services for a certain
2805	time; deleting certain wind-only coverage maximum loss reporting
2806	requirements; amending s. 627.711, F.S.; revising eligible
2807	entities authorized to certify uniform mitigation inspection
2808	forms; authorizing insurers to contract with inspection firms to
2809	review certain verification forms and reinspect properties for
2810	certain purposes; providing for such contracts to be at the
2811	insurer's expense; providing a criminal penalty for knowingly
2812	submitting a false or fraudulent mitigation form with the intent
2813	to receive an undeserved discount; amending s. 627.712, F.S.;
2814	providing an additional exception to residential property
2815	insurance windstorm coverage requirements for certain risks;
2816	expanding a requirement that insurers notify mortgageholders or
2817	lienholders of policyholder elections for coverage not covering
2818	wind; amending s. 631.65, F.S.; providing construction relating
2819	to certain prohibited advertisements or solicitations; requiring
2820	the My Safe Florida Home Program to use certain funds for
2821	certain mitigation grants; authorizing the department to
2822	establish a separate account in the trust fund for accounting
2823	purposes; amending s. 626.854, F.S.; prohibiting public
2824	adjusters from compensating, or agreeing to compensate, any
2825	person for referrals of business; providing an exception;
2826	amending s. 626.865, F.S.; revising qualifications for public
2827	adjuster's license; deleting requirement that applicant for
2828	public adjuster's license pass a written examination; amending
2829	s. 626.8651, F.S.; revising qualifications for public adjuster
2830	apprentice license; requiring that applicant for public adjuster
2831	apprentice license pass a written examination, complete certain
2832	training, and receive a specified designation; limiting the
2833	number of public adjuster apprentices that may appointed by a
2834	public adjusting firm or supervised by a supervising public
2835	adjuster; amending s. 627.7011, F.S.; specifying that provisions
2836	regulating homeowners' policies do not prohibit insurers from
2837	repairing damaged property; requiring the Office of Program
2838	Policy Analysis and Government Accountability to submit a report
2839	to the Legislature, Commissioner of Insurance, Chief Financial
2840	Officer, and Governor reviewing laws governing public adjuster;
2841	specifying review requirements; specifying a required notice for
2842	insurance policies issued or renewed in this state; providing
2843	notice requirements; amending s. 626.9541, F.S.; authorizing
2844	licensed general lines agents to collect a service charge for
2845	processing certain installment payments under certain
2846	circumstances; providing a limitation; providing requirements;
2847	amending s. 624.46226, F.S.; authorizing reinsurance companies
2848	to issue coverage directly to certain public housing authorities
2849	under certain circumstances; specifying that a public housing
2850	authority is considered an insurer under certain circumstances;
2851	requiring that certain reinsurance contracts issued to public
2852	housing authorities receive the same tax treatment as contracts
2853	issued to insurance companies; providing construction; requiring
2854	rating agencies or rating services to disclose certain
2855	information in public reports and ratings; providing an
2856	effective date.
2857

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