Florida Senate - 2013                                     SB 378
       
       
       
       By Senator Bean
       
       
       
       
       4-00246B-13                                            2013378__
    1                        A bill to be entitled                      
    2         An act relating to manufactured and mobile homes;
    3         amending s. 627.351, F.S.; requiring the Citizens
    4         Property Insurance Corporation to provide coverage for
    5         mobile homes and related structures; amending s.
    6         723.06115, F.S.; specifying the procedure for
    7         requesting and obtaining funds from the Florida Mobile
    8         Home Relocation Trust Fund to pay for the operational
    9         costs of the Florida Mobile Home Relocation
   10         Corporation and the relocation costs of mobile home
   11         owners; providing an effective date.
   12  
   13  Be It Enacted by the Legislature of the State of Florida:
   14  
   15         Section 1. Paragraph (c) of subsection (6) of section
   16  627.351, Florida Statutes, is amended to read:
   17         627.351 Insurance risk apportionment plans.—
   18         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
   19         (c) The corporation’s plan of operation:
   20         1. Must provide for adoption of residential property and
   21  casualty insurance policy forms and commercial residential and
   22  nonresidential property insurance forms, which must be approved
   23  by the office before use. The corporation shall adopt the
   24  following policy forms:
   25         a. Standard personal lines policy forms that are
   26  comprehensive multiperil policies providing full coverage of a
   27  residential property equivalent to the coverage provided in the
   28  private insurance market under an HO-3, HO-4, or HO-6 policy.
   29         b. Basic personal lines policy forms that are policies
   30  similar to an HO-8 policy or a dwelling fire policy that provide
   31  coverage meeting the requirements of the secondary mortgage
   32  market, but which is more limited than the coverage under a
   33  standard policy.
   34         c. Commercial lines residential and nonresidential policy
   35  forms that are generally similar to the basic perils of full
   36  coverage obtainable for commercial residential structures and
   37  commercial nonresidential structures in the admitted voluntary
   38  market.
   39         d. Personal lines and commercial lines residential property
   40  insurance forms that cover the peril of wind only. The forms are
   41  applicable only to residential properties located in areas
   42  eligible for coverage under the coastal account referred to in
   43  sub-subparagraph (b)2.a.
   44         e. Commercial lines nonresidential property insurance forms
   45  that cover the peril of wind only. The forms are applicable only
   46  to nonresidential properties located in areas eligible for
   47  coverage under the coastal account referred to in sub
   48  subparagraph (b)2.a.
   49         f. The corporation may adopt variations of the policy forms
   50  listed in sub-subparagraphs a.-e. which contain more restrictive
   51  coverage.
   52         g. Effective January 1, 2013, the corporation shall offer a
   53  basic personal lines policy similar to an HO-8 policy with
   54  dwelling repair based on common construction materials and
   55  methods.
   56         2. Must provide that the corporation adopt a program in
   57  which the corporation and authorized insurers enter into quota
   58  share primary insurance agreements for hurricane coverage, as
   59  defined in s. 627.4025(2)(a), for eligible risks, and adopt
   60  property insurance forms for eligible risks which cover the
   61  peril of wind only.
   62         a. As used in this subsection, the term:
   63         (I) “Quota share primary insurance” means an arrangement in
   64  which the primary hurricane coverage of an eligible risk is
   65  provided in specified percentages by the corporation and an
   66  authorized insurer. The corporation and authorized insurer are
   67  each solely responsible for a specified percentage of hurricane
   68  coverage of an eligible risk as set forth in a quota share
   69  primary insurance agreement between the corporation and an
   70  authorized insurer and the insurance contract. The
   71  responsibility of the corporation or authorized insurer to pay
   72  its specified percentage of hurricane losses of an eligible
   73  risk, as set forth in the agreement, may not be altered by the
   74  inability of the other party to pay its specified percentage of
   75  losses. Eligible risks that are provided hurricane coverage
   76  through a quota share primary insurance arrangement must be
   77  provided policy forms that set forth the obligations of the
   78  corporation and authorized insurer under the arrangement,
   79  clearly specify the percentages of quota share primary insurance
   80  provided by the corporation and authorized insurer, and
   81  conspicuously and clearly state that the authorized insurer and
   82  the corporation may not be held responsible beyond their
   83  specified percentage of coverage of hurricane losses.
   84         (II) “Eligible risks” means personal lines residential and
   85  commercial lines residential risks that meet the underwriting
   86  criteria of the corporation and are located in areas that were
   87  eligible for coverage by the Florida Windstorm Underwriting
   88  Association on January 1, 2002.
   89         b. The corporation may enter into quota share primary
   90  insurance agreements with authorized insurers at corporation
   91  coverage levels of 90 percent and 50 percent.
   92         c. If the corporation determines that additional coverage
   93  levels are necessary to maximize participation in quota share
   94  primary insurance agreements by authorized insurers, the
   95  corporation may establish additional coverage levels. However,
   96  the corporation’s quota share primary insurance coverage level
   97  may not exceed 90 percent.
   98         d. Any quota share primary insurance agreement entered into
   99  between an authorized insurer and the corporation must provide
  100  for a uniform specified percentage of coverage of hurricane
  101  losses, by county or territory as set forth by the corporation
  102  board, for all eligible risks of the authorized insurer covered
  103  under the agreement.
  104         e. Any quota share primary insurance agreement entered into
  105  between an authorized insurer and the corporation is subject to
  106  review and approval by the office. However, such agreement shall
  107  be authorized only as to insurance contracts entered into
  108  between an authorized insurer and an insured who is already
  109  insured by the corporation for wind coverage.
  110         f. For all eligible risks covered under quota share primary
  111  insurance agreements, the exposure and coverage levels for both
  112  the corporation and authorized insurers shall be reported by the
  113  corporation to the Florida Hurricane Catastrophe Fund. For all
  114  policies of eligible risks covered under such agreements, the
  115  corporation and the authorized insurer must maintain complete
  116  and accurate records for the purpose of exposure and loss
  117  reimbursement audits as required by fund rules. The corporation
  118  and the authorized insurer shall each maintain duplicate copies
  119  of policy declaration pages and supporting claims documents.
  120         g. The corporation board shall establish in its plan of
  121  operation standards for quota share agreements which ensure that
  122  there is no discriminatory application among insurers as to the
  123  terms of the agreements, pricing of the agreements, incentive
  124  provisions if any, and consideration paid for servicing policies
  125  or adjusting claims.
  126         h. The quota share primary insurance agreement between the
  127  corporation and an authorized insurer must set forth the
  128  specific terms under which coverage is provided, including, but
  129  not limited to, the sale and servicing of policies issued under
  130  the agreement by the insurance agent of the authorized insurer
  131  producing the business, the reporting of information concerning
  132  eligible risks, the payment of premium to the corporation, and
  133  arrangements for the adjustment and payment of hurricane claims
  134  incurred on eligible risks by the claims adjuster and personnel
  135  of the authorized insurer. Entering into a quota sharing
  136  insurance agreement between the corporation and an authorized
  137  insurer is voluntary and at the discretion of the authorized
  138  insurer.
  139         3.a. May provide that the corporation may employ or
  140  otherwise contract with individuals or other entities to provide
  141  administrative or professional services that may be appropriate
  142  to effectuate the plan. The corporation may borrow funds by
  143  issuing bonds or by incurring other indebtedness, and shall have
  144  other powers reasonably necessary to effectuate the requirements
  145  of this subsection, including, without limitation, the power to
  146  issue bonds and incur other indebtedness in order to refinance
  147  outstanding bonds or other indebtedness. The corporation may
  148  seek judicial validation of its bonds or other indebtedness
  149  under chapter 75. The corporation may issue bonds or incur other
  150  indebtedness, or have bonds issued on its behalf by a unit of
  151  local government pursuant to subparagraph (q)2. in the absence
  152  of a hurricane or other weather-related event, upon a
  153  determination by the corporation, subject to approval by the
  154  office, that such action would enable it to efficiently meet the
  155  financial obligations of the corporation and that such
  156  financings are reasonably necessary to effectuate the
  157  requirements of this subsection. The corporation may take all
  158  actions needed to facilitate tax-free status for such bonds or
  159  indebtedness, including formation of trusts or other affiliated
  160  entities. The corporation may pledge assessments, projected
  161  recoveries from the Florida Hurricane Catastrophe Fund, other
  162  reinsurance recoverables, policyholder surcharges and other
  163  surcharges, and other funds available to the corporation as
  164  security for bonds or other indebtedness. In recognition of s.
  165  10, Art. I of the State Constitution, prohibiting the impairment
  166  of obligations of contracts, it is the intent of the Legislature
  167  that no action be taken whose purpose is to impair any bond
  168  indenture or financing agreement or any revenue source committed
  169  by contract to such bond or other indebtedness.
  170         b. To ensure that the corporation is operating in an
  171  efficient and economic manner while providing quality service to
  172  policyholders, applicants, and agents, the board shall
  173  commission an independent third-party consultant having
  174  expertise in insurance company management or insurance company
  175  management consulting to prepare a report and make
  176  recommendations on the relative costs and benefits of
  177  outsourcing various policy issuance and service functions to
  178  private servicing carriers or entities performing similar
  179  functions in the private market for a fee, rather than
  180  performing such functions in-house. In making such
  181  recommendations, the consultant shall consider how other
  182  residual markets, both in this state and around the country,
  183  outsource appropriate functions or use servicing carriers to
  184  better match expenses with revenues that fluctuate based on a
  185  widely varying policy count. The report must be completed by
  186  July 1, 2012. Upon receiving the report, the board shall develop
  187  a plan to implement the report and submit the plan for review,
  188  modification, and approval to the Financial Services Commission.
  189  Upon the commission’s approval of the plan, the board shall
  190  begin implementing the plan by January 1, 2013.
  191         4. Must require that the corporation operate subject to the
  192  supervision and approval of a board of governors consisting of
  193  eight individuals who are residents of this state, from
  194  different geographical areas of this state.
  195         a. The Governor, the Chief Financial Officer, the President
  196  of the Senate, and the Speaker of the House of Representatives
  197  shall each appoint two members of the board. At least one of the
  198  two members appointed by each appointing officer must have
  199  demonstrated expertise in insurance and is deemed to be within
  200  the scope of the exemption provided in s. 112.313(7)(b). The
  201  Chief Financial Officer shall designate one of the appointees as
  202  chair. All board members serve at the pleasure of the appointing
  203  officer. All members of the board are subject to removal at will
  204  by the officers who appointed them. All board members, including
  205  the chair, must be appointed to serve for 3-year terms beginning
  206  annually on a date designated by the plan. However, for the
  207  first term beginning on or after July 1, 2009, each appointing
  208  officer shall appoint one member of the board for a 2-year term
  209  and one member for a 3-year term. A board vacancy shall be
  210  filled for the unexpired term by the appointing officer. The
  211  Chief Financial Officer shall appoint a technical advisory group
  212  to provide information and advice to the board in connection
  213  with the board’s duties under this subsection. The executive
  214  director and senior managers of the corporation shall be engaged
  215  by the board and serve at the pleasure of the board. Any
  216  executive director appointed on or after July 1, 2006, is
  217  subject to confirmation by the Senate. The executive director is
  218  responsible for employing other staff as the corporation may
  219  require, subject to review and concurrence by the board.
  220         b. The board shall create a Market Accountability Advisory
  221  Committee to assist the corporation in developing awareness of
  222  its rates and its customer and agent service levels in
  223  relationship to the voluntary market insurers writing similar
  224  coverage.
  225         (I) The members of the advisory committee consist of the
  226  following 11 persons, one of whom must be elected chair by the
  227  members of the committee: four representatives, one appointed by
  228  the Florida Association of Insurance Agents, one by the Florida
  229  Association of Insurance and Financial Advisors, one by the
  230  Professional Insurance Agents of Florida, and one by the Latin
  231  American Association of Insurance Agencies; three
  232  representatives appointed by the insurers with the three highest
  233  voluntary market share of residential property insurance
  234  business in the state; one representative from the Office of
  235  Insurance Regulation; one consumer appointed by the board who is
  236  insured by the corporation at the time of appointment to the
  237  committee; one representative appointed by the Florida
  238  Association of Realtors; and one representative appointed by the
  239  Florida Bankers Association. All members shall be appointed to
  240  3-year terms and may serve for consecutive terms.
  241         (II) The committee shall report to the corporation at each
  242  board meeting on insurance market issues which may include rates
  243  and rate competition with the voluntary market; service,
  244  including policy issuance, claims processing, and general
  245  responsiveness to policyholders, applicants, and agents; and
  246  matters relating to depopulation.
  247         5. Must provide a procedure for determining the eligibility
  248  of a risk for coverage, as follows:
  249         a. Subject to s. 627.3517, with respect to personal lines
  250  residential risks, if the risk is offered coverage from an
  251  authorized insurer at the insurer’s approved rate under a
  252  standard policy including wind coverage or, if consistent with
  253  the insurer’s underwriting rules as filed with the office, a
  254  basic policy including wind coverage, for a new application to
  255  the corporation for coverage, the risk is not eligible for any
  256  policy issued by the corporation unless the premium for coverage
  257  from the authorized insurer is more than 15 percent greater than
  258  the premium for comparable coverage from the corporation. If the
  259  risk is not able to obtain such offer, the risk is eligible for
  260  a standard policy including wind coverage or a basic policy
  261  including wind coverage issued by the corporation; however, if
  262  the risk could not be insured under a standard policy including
  263  wind coverage regardless of market conditions, the risk is
  264  eligible for a basic policy including wind coverage unless
  265  rejected under subparagraph 8. However, a policyholder of the
  266  corporation or a policyholder removed from the corporation
  267  through an assumption agreement until the end of the assumption
  268  period remains eligible for coverage from the corporation
  269  regardless of any offer of coverage from an authorized insurer
  270  or surplus lines insurer. The corporation shall determine the
  271  type of policy to be provided on the basis of objective
  272  standards specified in the underwriting manual and based on
  273  generally accepted underwriting practices.
  274         (I) If the risk accepts an offer of coverage through the
  275  market assistance plan or through a mechanism established by the
  276  corporation before a policy is issued to the risk by the
  277  corporation or during the first 30 days of coverage by the
  278  corporation, and the producing agent who submitted the
  279  application to the plan or to the corporation is not currently
  280  appointed by the insurer, the insurer shall:
  281         (A) Pay to the producing agent of record of the policy for
  282  the first year, an amount that is the greater of the insurer’s
  283  usual and customary commission for the type of policy written or
  284  a fee equal to the usual and customary commission of the
  285  corporation; or
  286         (B) Offer to allow the producing agent of record of the
  287  policy to continue servicing the policy for at least 1 year and
  288  offer to pay the agent the greater of the insurer’s or the
  289  corporation’s usual and customary commission for the type of
  290  policy written.
  291  
  292  If the producing agent is unwilling or unable to accept
  293  appointment, the new insurer shall pay the agent in accordance
  294  with sub-sub-sub-subparagraph (A).
  295         (II) If the corporation enters into a contractual agreement
  296  for a take-out plan, the producing agent of record of the
  297  corporation policy is entitled to retain any unearned commission
  298  on the policy, and the insurer shall:
  299         (A) Pay to the producing agent of record, for the first
  300  year, an amount that is the greater of the insurer’s usual and
  301  customary commission for the type of policy written or a fee
  302  equal to the usual and customary commission of the corporation;
  303  or
  304         (B) Offer to allow the producing agent of record to
  305  continue servicing the policy for at least 1 year and offer to
  306  pay the agent the greater of the insurer’s or the corporation’s
  307  usual and customary commission for the type of policy written.
  308  
  309  If the producing agent is unwilling or unable to accept
  310  appointment, the new insurer shall pay the agent in accordance
  311  with sub-sub-sub-subparagraph (A).
  312         b. With respect to commercial lines residential risks, for
  313  a new application to the corporation for coverage, if the risk
  314  is offered coverage under a policy including wind coverage from
  315  an authorized insurer at its approved rate, the risk is not
  316  eligible for a policy issued by the corporation unless the
  317  premium for coverage from the authorized insurer is more than 15
  318  percent greater than the premium for comparable coverage from
  319  the corporation. If the risk is not able to obtain any such
  320  offer, the risk is eligible for a policy including wind coverage
  321  issued by the corporation. However, a policyholder of the
  322  corporation or a policyholder removed from the corporation
  323  through an assumption agreement until the end of the assumption
  324  period remains eligible for coverage from the corporation
  325  regardless of an offer of coverage from an authorized insurer or
  326  surplus lines insurer.
  327         (I) If the risk accepts an offer of coverage through the
  328  market assistance plan or through a mechanism established by the
  329  corporation before a policy is issued to the risk by the
  330  corporation or during the first 30 days of coverage by the
  331  corporation, and the producing agent who submitted the
  332  application to the plan or the corporation is not currently
  333  appointed by the insurer, the insurer shall:
  334         (A) Pay to the producing agent of record of the policy, for
  335  the first year, an amount that is the greater of the insurer’s
  336  usual and customary commission for the type of policy written or
  337  a fee equal to the usual and customary commission of the
  338  corporation; or
  339         (B) Offer to allow the producing agent of record of the
  340  policy to continue servicing the policy for at least 1 year and
  341  offer to pay the agent the greater of the insurer’s or the
  342  corporation’s usual and customary commission for the type of
  343  policy written.
  344  
  345  If the producing agent is unwilling or unable to accept
  346  appointment, the new insurer shall pay the agent in accordance
  347  with sub-sub-sub-subparagraph (A).
  348         (II) If the corporation enters into a contractual agreement
  349  for a take-out plan, the producing agent of record of the
  350  corporation policy is entitled to retain any unearned commission
  351  on the policy, and the insurer shall:
  352         (A) Pay to the producing agent of record, for the first
  353  year, an amount that is the greater of the insurer’s usual and
  354  customary commission for the type of policy written or a fee
  355  equal to the usual and customary commission of the corporation;
  356  or
  357         (B) Offer to allow the producing agent of record to
  358  continue servicing the policy for at least 1 year and offer to
  359  pay the agent the greater of the insurer’s or the corporation’s
  360  usual and customary commission for the type of policy written.
  361  
  362  If the producing agent is unwilling or unable to accept
  363  appointment, the new insurer shall pay the agent in accordance
  364  with sub-sub-sub-subparagraph (A).
  365         c. For purposes of determining comparable coverage under
  366  sub-subparagraphs a. and b., the comparison must be based on
  367  those forms and coverages that are reasonably comparable. The
  368  corporation may rely on a determination of comparable coverage
  369  and premium made by the producing agent who submits the
  370  application to the corporation, made in the agent’s capacity as
  371  the corporation’s agent. A comparison may be made solely of the
  372  premium with respect to the main building or structure only on
  373  the following basis: the same coverage A or other building
  374  limits; the same percentage hurricane deductible that applies on
  375  an annual basis or that applies to each hurricane for commercial
  376  residential property; the same percentage of ordinance and law
  377  coverage, if the same limit is offered by both the corporation
  378  and the authorized insurer; the same mitigation credits, to the
  379  extent the same types of credits are offered both by the
  380  corporation and the authorized insurer; the same method for loss
  381  payment, such as replacement cost or actual cash value, if the
  382  same method is offered both by the corporation and the
  383  authorized insurer in accordance with underwriting rules; and
  384  any other form or coverage that is reasonably comparable as
  385  determined by the board. If an application is submitted to the
  386  corporation for wind-only coverage in the coastal account, the
  387  premium for the corporation’s wind-only policy plus the premium
  388  for the ex-wind policy that is offered by an authorized insurer
  389  to the applicant must be compared to the premium for multiperil
  390  coverage offered by an authorized insurer, subject to the
  391  standards for comparison specified in this subparagraph. If the
  392  corporation or the applicant requests from the authorized
  393  insurer a breakdown of the premium of the offer by types of
  394  coverage so that a comparison may be made by the corporation or
  395  its agent and the authorized insurer refuses or is unable to
  396  provide such information, the corporation may treat the offer as
  397  not being an offer of coverage from an authorized insurer at the
  398  insurer’s approved rate.
  399         6. Must include rules for classifications of risks and
  400  rates.
  401         7. Must provide that if premium and investment income for
  402  an account attributable to a particular calendar year are in
  403  excess of projected losses and expenses for the account
  404  attributable to that year, such excess shall be held in surplus
  405  in the account. Such surplus must be available to defray
  406  deficits in that account as to future years and used for that
  407  purpose before assessing assessable insurers and assessable
  408  insureds as to any calendar year.
  409         8. Must provide objective criteria and procedures to be
  410  uniformly applied to all applicants in determining whether an
  411  individual risk is so hazardous as to be uninsurable. In making
  412  this determination and in establishing the criteria and
  413  procedures, the following must be considered:
  414         a. Whether the likelihood of a loss for the individual risk
  415  is substantially higher than for other risks of the same class;
  416  and
  417         b. Whether the uncertainty associated with the individual
  418  risk is such that an appropriate premium cannot be determined.
  419  
  420  The acceptance or rejection of a risk by the corporation shall
  421  be construed as the private placement of insurance, and the
  422  provisions of chapter 120 do not apply.
  423         9. Must provide that the corporation make its best efforts
  424  to procure catastrophe reinsurance at reasonable rates, to cover
  425  its projected 100-year probable maximum loss as determined by
  426  the board of governors.
  427         10. The policies issued by the corporation must provide
  428  that if the corporation or the market assistance plan obtains an
  429  offer from an authorized insurer to cover the risk at its
  430  approved rates, the risk is no longer eligible for renewal
  431  through the corporation, except as otherwise provided in this
  432  subsection.
  433         11. Corporation policies and applications must include a
  434  notice that the corporation policy could, under this section, be
  435  replaced with a policy issued by an authorized insurer which
  436  does not provide coverage identical to the coverage provided by
  437  the corporation. The notice must also specify that acceptance of
  438  corporation coverage creates a conclusive presumption that the
  439  applicant or policyholder is aware of this potential.
  440         12. May establish, subject to approval by the office,
  441  different eligibility requirements and operational procedures
  442  for any line or type of coverage for any specified county or
  443  area if the board determines that such changes are justified due
  444  to the voluntary market being sufficiently stable and
  445  competitive in such area or for such line or type of coverage
  446  and that consumers who, in good faith, are unable to obtain
  447  insurance through the voluntary market through ordinary methods
  448  continue to have access to coverage from the corporation. If
  449  coverage is sought in connection with a real property transfer,
  450  the requirements and procedures may not provide an effective
  451  date of coverage later than the date of the closing of the
  452  transfer as established by the transferor, the transferee, and,
  453  if applicable, the lender.
  454         13. Must provide that, with respect to the coastal account,
  455  any assessable insurer with a surplus as to policyholders of $25
  456  million or less writing 25 percent or more of its total
  457  countrywide property insurance premiums in this state may
  458  petition the office, within the first 90 days of each calendar
  459  year, to qualify as a limited apportionment company. A regular
  460  assessment levied by the corporation on a limited apportionment
  461  company for a deficit incurred by the corporation for the
  462  coastal account may be paid to the corporation on a monthly
  463  basis as the assessments are collected by the limited
  464  apportionment company from its insureds, but a limited
  465  apportionment company must begin collecting the regular
  466  assessments not later than 90 days after the regular assessments
  467  are levied by the corporation, and the regular assessments must
  468  be paid in full within 15 months after being levied by the
  469  corporation. A limited apportionment company shall collect from
  470  its policyholders any emergency assessment imposed under sub
  471  subparagraph (b)3.d. The plan must provide that, if the office
  472  determines that any regular assessment will result in an
  473  impairment of the surplus of a limited apportionment company,
  474  the office may direct that all or part of such assessment be
  475  deferred as provided in subparagraph (q)4. However, an emergency
  476  assessment to be collected from policyholders under sub
  477  subparagraph (b)3.d. may not be limited or deferred.
  478         14. Must provide that the corporation appoint as its
  479  licensed agents only those agents who also hold an appointment
  480  as defined in s. 626.015(3) with an insurer who at the time of
  481  the agent’s initial appointment by the corporation is authorized
  482  to write and is actually writing personal lines residential
  483  property coverage, commercial residential property coverage, or
  484  commercial nonresidential property coverage within the state.
  485         15. Must provide a premium payment plan option to its
  486  policyholders which, at a minimum, allows for quarterly and
  487  semiannual payment of premiums. A monthly payment plan may, but
  488  is not required to, be offered.
  489         16. Must provide coverage for manufactured or mobile home
  490  dwellings. The coverage must include coverage for the following
  491  structures whether attached to the dwelling or not: limit
  492  coverage on mobile homes or manufactured homes built before 1994
  493  to actual cash value of the dwelling rather than replacement
  494  costs of the dwelling.
  495         a. Screened or glassed enclosures, irrespective of type of
  496  material used for the enclosure or for its roof;
  497         b. Carports, irrespective of type of material used for the
  498  carport or for its roof;
  499         c. Patios, irrespective of type of material used for the
  500  patio or its roof;
  501         d. Awnings, irrespective of type of material used for the
  502  awning;
  503         e. Decks, irrespective of material used for the deck or its
  504  roof; and
  505         f. Storage rooms or areas, regardless of material used for
  506  the storage room or area.
  507  
  508  The corporation shall insure the manufactured or mobile home
  509  dwelling and other structures for the value specified in a
  510  contract for sale dated within the previous 12 months, or, if
  511  there is no contract, for the value set forth in an appraisal
  512  submitted by the policyholder. The corporation shall insure each
  513  manufactured or mobile home dwelling and other structures
  514  regardless of value.
  515         17. May provide such limits of coverage as the board
  516  determines, consistent with the requirements of this subsection.
  517         18. May require commercial property to meet specified
  518  hurricane mitigation construction features as a condition of
  519  eligibility for coverage.
  520         19. Must provide that new or renewal policies issued by the
  521  corporation on or after January 1, 2012, which cover sinkhole
  522  loss do not include coverage for any loss to appurtenant
  523  structures, driveways, sidewalks, decks, or patios that are
  524  directly or indirectly caused by sinkhole activity. The
  525  corporation shall exclude such coverage using a notice of
  526  coverage change, which may be included with the policy renewal,
  527  and not by issuance of a notice of nonrenewal of the excluded
  528  coverage upon renewal of the current policy.
  529         20. As of January 1, 2012, must require that the agent
  530  obtain from an applicant for coverage from the corporation an
  531  acknowledgment signed by the applicant, which includes, at a
  532  minimum, the following statement:
  533  
  534                ACKNOWLEDGMENT OF POTENTIAL SURCHARGE              
  535                      AND ASSESSMENT LIABILITY:                    
  536  
  537         1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
  538  CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
  539  DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
  540  MY POLICY COULD BE SUBJECT TO SURCHARGES, WHICH WILL BE DUE AND
  541  PAYABLE UPON RENEWAL, CANCELLATION, OR TERMINATION OF THE
  542  POLICY, AND THAT THE SURCHARGES COULD BE AS HIGH AS 45 PERCENT
  543  OF MY PREMIUM, OR A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA
  544  LEGISLATURE.
  545         2. I ALSO UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
  546  ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
  547  INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
  548  FLORIDA LEGISLATURE.
  549         3. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
  550  CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
  551  STATE OF FLORIDA.
  552         a. The corporation shall maintain, in electronic format or
  553  otherwise, a copy of the applicant’s signed acknowledgment and
  554  provide a copy of the statement to the policyholder as part of
  555  the first renewal after the effective date of this subparagraph.
  556         b. The signed acknowledgment form creates a conclusive
  557  presumption that the policyholder understood and accepted his or
  558  her potential surcharge and assessment liability as a
  559  policyholder of the corporation.
  560         Section 2. Section 723.06115, Florida Statutes, is amended
  561  to read:
  562         723.06115 Florida Mobile Home Relocation Trust Fund.—
  563         (1) The Florida Mobile Home Relocation Trust Fund There is
  564  established within the Department of Business and Professional
  565  Regulation. The the Florida Mobile Home Relocation trust fund,
  566  is to be used to fund by the department for the purpose of
  567  funding the administration and operations of the Florida Mobile
  568  Home Relocation Corporation. All interest earned from the
  569  investment or deposit of moneys in the trust fund shall be
  570  deposited in the trust fund. The trust fund shall be funded from
  571  the moneys collected by the corporation department under s.
  572  723.06116 from mobile home park owners under s. 723.06116, who
  573  change the use of their mobile home parks; the surcharge
  574  collected by the department under s. 723.007(2),; the surcharge
  575  collected by the Department of Highway Safety and Motor
  576  Vehicles,; and from by other appropriated funds.
  577         (2) Moneys in the Florida Mobile Home Relocation Trust Fund
  578  may be expended only:
  579         (a) To pay the administration costs of the Florida Mobile
  580  Home Relocation Corporation; and
  581         (b) To carry out the purposes and objectives of the Florida
  582  Mobile Home Relocation corporation by making payments to mobile
  583  home owners under the relocation program.
  584         (3) The department shall distribute moneys in the Florida
  585  Mobile Home Relocation Trust Fund to the Florida Mobile Home
  586  Relocation Corporation in accordance with the following:
  587         (a) At the beginning of each fiscal year, the corporation
  588  shall determine its operational costs for the fiscal year and
  589  set forth that amount to the department in writing. The
  590  department shall distribute that amount to the corporation
  591  within 2 business days after receipt of the written statement.
  592  Throughout the fiscal year, the corporation may seek additional
  593  funds in writing for administration and operational costs based
  594  on need as determined by the corporation and the department
  595  shall distribute these funds within 2 business days after
  596  receipt of the written statement. The corporation may place
  597  these funds in a noninterest bearing checking account; and
  598         (b) As it deems necessary, the corporation shall set forth
  599  to the department in writing the amount needed to make payments
  600  to mobile home owners under the relocation program. The
  601  department shall distribute that amount to the corporation
  602  within 2 business days after receipt of the written statement.
  603  The corporation may place these funds in a noninterest bearing
  604  checking account.
  605         (4) Other than the requirements specified by this section,
  606  neither the corporation nor the department are required to take
  607  any other action as a prerequisite to the distribution of trust
  608  funds to the Florida Mobile Home Relocation Corporation.
  609         Section 3. This act shall take effect upon becoming a law.