Florida Senate - 2013                          SENATOR AMENDMENT
       Bill No. CS for SB 1770
       
       
       
       
       
       
                                Barcode 651304                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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               Floor: 16/AD/2R         .                                
             04/11/2013 04:22 PM       .                                
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       Senator Simmons moved the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 2514 - 2744
    4  and insert:
    5         627.3518Citizens Property Insurance Corporation
    6  clearinghouse.—The Legislature recognizes that Citizens Property
    7  Insurance Corporation has authority to establish a clearinghouse
    8  as a separate organizational unit within the corporation for the
    9  purpose of determining the eligibility of new and renewal risks,
   10  excluding commercial residential, seeking coverage through the
   11  corporation and facilitating the identification and diversion of
   12  ineligible applicants and current policyholders from the
   13  corporation into the voluntary insurance market. The purpose of
   14  this section is to augment that authority by providing a
   15  framework for the corporation to implement such program by
   16  January 1, 2014.
   17         (1) As used in this section, the term:
   18         (a) “Clearinghouse” means the clearinghouse diversion
   19  program created under this section.
   20         (b) “Corporation” means Citizens Property Insurance
   21  Corporation.
   22         (c) “Exclusive agent” means a licensed insurance agent who
   23  has agreed, by contract, to act exclusively for one company or
   24  group of affiliated insurance companies and is disallowed by the
   25  provisions of that contract to directly write for any other
   26  unaffiliated insurer absent express consent from the company or
   27  group of affiliated insurance companies.
   28         (d) “Independent agent” means a licensed insurance agent
   29  not described in paragraph (c).
   30         (2) In order to confirm eligibility with the corporation
   31  and to enhance the access of new applicants for coverage and
   32  existing policyholders of the corporation to offers of coverage
   33  from authorized and eligible insurers, the corporation shall
   34  establish a clearinghouse for personal residential risks in
   35  order to facilitate the diversion of ineligible applicants and
   36  existing policyholders from the corporation into the voluntary
   37  insurance market. The corporation shall also develop appropriate
   38  procedures for facilitating the diversion of ineligible
   39  applicants and existing policyholders for commercial residential
   40  coverage into the private insurance market, and shall report
   41  such procedures to the President of the Senate and the Speaker
   42  of the House of Representatives by July 1, 2015.
   43         (3) The clearinghouse has the same rights and
   44  responsibilities in carrying out its duties as a licensed
   45  general lines agent, but is not required to employ or engage a
   46  licensed general lines agent or to maintain an insurance agency
   47  license in order to solicit and place insurance coverage. In
   48  establishing the clearinghouse, the corporation may:
   49         (a) Require all new applications and all policies due for
   50  renewal to be submitted to the clearinghouse in order to
   51  facilitate obtaining an offer of coverage from an authorized
   52  insurer before binding or renewing coverage by the corporation.
   53         (b) Employ or otherwise contract with individuals or other
   54  entities to provide administrative or professional services in
   55  order to carry out the plan within the corporation in accordance
   56  with the applicable purchasing requirements under s. 627.351.
   57         (c) Enter into a contract with an authorized or eligible
   58  insurer participating in the clearinghouse and accept an
   59  appointment by such insurer.
   60         (d) Provide funds to operate the clearinghouse. Insurers
   61  and agents participating in the clearinghouse are not required
   62  to pay a fee to offset or partially offset the cost of the
   63  clearinghouse, or use the clearinghouse for the renewal of
   64  policies initially written through the clearinghouse.
   65         (e) Develop an enhanced application for obtaining
   66  information that will assist private insurers in determining
   67  whether to make an offer of coverage through the clearinghouse.
   68         (f) Before approving new applications for coverage by the
   69  corporation, require that every application be subject to a
   70  period of 2 business days during which an insurer participating
   71  in the program may select the application for coverage. The
   72  insurer may issue a binder on any policy selected for coverage
   73  for at least 30 days but not more than 60 days.
   74         (4) An authorized or eligible insurer may participate in
   75  the clearinghouse; however, participation is not mandatory. An
   76  insurer that makes an offer of coverage to a new applicant or
   77  renews a policy for a policyholder through the clearinghouse:
   78         (a) Is not required to individually appoint an agent whose
   79  customer is underwritten and bound through the clearinghouse.
   80  Notwithstanding s. 626.112, an insurer is not required to
   81  appoint an agent on a policy underwritten through the
   82  clearinghouse if that policy remains with the insurer. An
   83  insurer may appoint an agent whose customer is initially
   84  underwritten and bound through the clearinghouse. If an insurer
   85  accepts a policy from an agent who is not appointed pursuant to
   86  this paragraph and thereafter accepts a policy from such agent,
   87  the provisions of s. 626.112 requiring appointment apply to the
   88  agent.
   89         (b) Must enter into a limited agency agreement with each
   90  agent who is not appointed in accordance with paragraph (a) and
   91  whose customer is underwritten and bound through the
   92  clearinghouse.
   93         (c) Must enter into its standard agency agreement with each
   94  agent whose customer is underwritten and bound through the
   95  clearinghouse if that agent has been appointed by the insurer
   96  pursuant to s. 626.112.
   97         (d) Must comply with s. 627.4133(2).
   98         (e) Must allow authorized or eligible insurers
   99  participating in the clearinghouse to participate through their
  100  single, designated managing general agent or broker; however,
  101  the provisions of paragraph (6)(a) regarding ownership, control,
  102  and use of the expirations apply.
  103         (f) Must pay the producing agent a commission equal to that
  104  paid by the corporation or the usual and customary commission
  105  paid by the insurer for that line of business, whichever is
  106  greater.
  107         (5)(a) Notwithstanding s. 627.3517, an applicant for new
  108  coverage is not eligible for coverage from the corporation if
  109  the applicant is offered coverage from an authorized insurer
  110  through the clearinghouse at a premium that is at or below the
  111  eligibility threshold established under s. 627.351(6)(c)5.a.
  112         (b) Notwithstanding any other provisions of law, if a
  113  renewing policyholder of the corporation is offered coverage
  114  from an authorized insurer for a personal lines or commercial
  115  lines risk at a premium that is no more than 15 percent above
  116  the corporation’s renewal premium for comparable coverage, the
  117  risk is not eligible for coverage with the corporation.
  118         (c) Notwithstanding s. 626.916(1), if an applicant for new
  119  or renewal coverage from the corporation does not receive an
  120  offer of coverage from an authorized insurer, the applicant may
  121  choose to accept an offer of coverage from an eligible insurer
  122  or its broker under ss. 626.913-626.937. Such offer of coverage
  123  from an eligible insurer does not make the risk ineligible for
  124  coverage with the corporation.
  125         (d) An applicant for new or renewal coverage from the
  126  corporation may choose to accept any offer of coverage received
  127  through the clearinghouse from an authorized insurer which is
  128  greater than 15 percent of the corporation’s renewal premium.
  129         (e) Section 627.351(6)(c)5.a.(I) and b.(I) does not apply
  130  to an offer of coverage from an authorized insurer obtained
  131  through the clearinghouse.
  132         (6) An independent agent who submits a new application for
  133  coverage or who is the agent of record on a renewal policy
  134  submitted to the clearinghouse:
  135         (a) Is granted and must maintain ownership and the
  136  exclusive use of expirations, records, or other written or
  137  electronic information directly related to such application or
  138  renewal written through the corporation or through an insurer
  139  participating in the clearinghouse, notwithstanding s.
  140  627.351(6)(c)5.a.(I)(B) and (II)(B). Such ownership is granted
  141  for as long as the insured remains with the agency or until sold
  142  or surrendered in writing by the agent. A contract with the
  143  corporation or required by the corporation may not amend,
  144  modify, interfere with, or limit such rights of ownership. Such
  145  expirations, records, or other written or electronic information
  146  may be used to review an application or issue a policy or for
  147  any other purpose necessary for placing business through the
  148  clearinghouse.
  149         (b) Is not required to be appointed by an insurer
  150  participating in the clearinghouse for policies written solely
  151  through the clearinghouse, notwithstanding s. 626.112.
  152         (c) May accept an appointment from an insurer participating
  153  in the clearinghouse.
  154         (d) May enter into a standard or limited agency agreement
  155  with the insurer, at the insurer’s option.
  156  
  157  An applicant ineligible for coverage under subsection (5)
  158  remains ineligible if the applicant’s independent agent is
  159  unwilling or unable to enter into a standard or limited agency
  160  agreement with an insurer participating in the clearinghouse.
  161         (7) An exclusive agent who submits a new application for
  162  coverage or who is the agent of record on a renewal policy
  163  submitted to the clearinghouse:
  164         (a) Must maintain ownership and the exclusive use of
  165  expirations, records, or other written or electronic information
  166  directly related to such application or renewal written through
  167  the corporation or through an insurer participating in the
  168  clearinghouse, notwithstanding s. 627.351(6)(c)5.a.(I)(B) and
  169  (II)(B). A contract with the corporation or required by the
  170  corporation may not amend, modify, interfere with, or limit such
  171  rights of ownership. Such expirations, records, or other written
  172  or electronic information may be used to review an application
  173  or issue a policy or for any other purpose necessary for placing
  174  business through the clearinghouse.
  175         (b) Is not required to be appointed by an insurer
  176  participating in the clearinghouse for policies written solely
  177  through the clearinghouse, notwithstanding s. 626.112.
  178         (c) Must only facilitate the placement of an offer of
  179  coverage from an insurer whose limited servicing agreement is
  180  approved by that exclusive agent’s exclusive insurer.
  181         (d) May enter into a limited servicing agreement with the
  182  insurer making an offer of coverage, and may do so only after
  183  the exclusive agent’s insurer has approved the terms of the
  184  agreement. The exclusive agent’s insurer must approve a limited
  185  service agreement for the clearinghouse if the insurer has
  186  approved a service agreement with the agent for other purposes.
  187  
  188  An applicant is ineligible for coverage under subsection (5) if
  189  the applicant’s exclusive agent is unwilling or unable to enter
  190  into a standard or limited agency agreement with a participating
  191  insurer making an offer of coverage to that applicant.
  192         (8) Submission of an application to the clearinghouse for
  193  coverage by the corporation does not constitute the binding of
  194  coverage, and the failure of the clearinghouse to obtain an
  195  offer of coverage by an insurer is not considered acceptance of
  196  coverage of the risk by the corporation.
  197         (9) The clearinghouse may not include commercial
  198  nonresidential policies.
  199         Section 14. Temporary keepout program.—Citizens Property
  200  Insurance Corporation shall implement a temporary keepout
  201  program beginning July 1, 2013, and ending on the date the
  202  clearinghouse program established under s. 627.3518, Florida
  203  Statutes, is operational.
  204         (1) Subject to procedures adopted by the corporation, the
  205  program shall provide an opportunity for new applicants for
  206  personal residential multiperil coverage with the corporation to
  207  be offered coverage with authorized insurers through the market
  208  assistance plan established under s. 627.3515, Florida Statutes.
  209         (2) The program is subject to all of the following:
  210         (a) The corporation may not accept a new personal
  211  residential multiperil application for coverage within 72 hours
  212  after submission of the risk to the market assistance plan under
  213  subsection (1).
  214         (b) Section 627.3517, Florida Statutes, relating to
  215  consumer choice of agent does not apply to applications for
  216  coverage accepted by authorized insurers under the program.
  217         (c) Insurers issuing policies under this section are
  218  subject to s. 627.3518(3), Florida Statutes, relating to agent
  219  appointment.
  220         (d) Notwithstanding s. 626.916(1), Florida Statutes, if an
  221  applicant for new or renewal coverage from the corporation does
  222  not receive an offer of coverage from an eligible insurer, the
  223  applicant may accept an offer from a designated broker of an
  224  insurer eligible under ss. 626.913-626.937, Florida Statutes.
  225         (e) An exclusive agent must only facilitate the placement
  226  of an offer of coverage from an insurer whose limited servicing
  227  agreement is approved by that exclusive agent’s exclusive
  228  insurer.
  229  
  230  An applicant is ineligible for coverage if the applicant’s agent
  231  is unwilling or unable to enter into a standard or limited
  232  agency agreement with a participating insurer making an offer of
  233  coverage to that applicant.
  234         (3) This section expires on January 1, 2014, or when the
  235  clearinghouse program established under s. 627.3518, Florida
  236  Statutes, becomes operational, whichever occurs first.
  237  
  238  ================= T I T L E  A M E N D M E N T ================
  239         And the title is amended as follows:
  240         Delete lines 95 - 96
  241  and insert:
  242         establishing a temporary keepout