Florida Senate - 2026 SB 1028
By Senator Gruters
22-01372B-26 20261028__
1 A bill to be entitled
2 An act relating to the Citizens Property Insurance
3 Corporation; amending s. 627.351, F.S.; requiring the
4 corporation to charge a specified premium on certain
5 risks; specifying that the premium for subsequent
6 renewals of a corporation policy is subject to certain
7 requirements; providing an exception; amending s.
8 627.3518, F.S.; deleting an obsolete provision;
9 defining terms; revising the definition of the term
10 “program”; requiring the corporation to establish a
11 personal lines clearinghouse for specified purposes;
12 requiring, on or before a specified date, the
13 corporation to implement a commercial lines
14 clearinghouse for specified purposes; requiring, on or
15 before a specified date, the corporation to develop
16 and implement certain procedures; deleting reporting
17 requirements; revising the rights and responsibilities
18 the corporation has in establishing the program;
19 authorizing approved surplus lines clearinghouse
20 insurers to participate in the commercial lines
21 clearinghouse; prohibiting such insurers from
22 participating in the personal lines clearinghouse;
23 specifying that participation in the program is not
24 mandatory for such insurers; revising prohibitions and
25 requirements for insurers making offers of coverage to
26 new applicants or renewal policyholders through the
27 program; providing construction; specifying that
28 applicants for new commercial lines residential
29 coverage are not eligible for coverage from the
30 corporation under certain circumstances; deleting the
31 definition of the term “primary residence”; specifying
32 the circumstances under which policyholders of the
33 corporation are not eligible for commercial lines
34 residential coverage with the corporation; authorizing
35 applicants or insureds to elect to accept coverage
36 with specified insurers or elect to accept or continue
37 coverage with the corporation under certain
38 circumstances; authorizing insureds to elect to accept
39 coverage with specified insurers or elect to accept or
40 continue coverage with the corporation under certain
41 circumstances; providing applicability; specifying
42 that certain applicants remain eligible for coverage
43 from the corporation; authorizing such applicants to
44 elect to accept coverage with specified insurers or
45 elect to accept or continue coverage with the
46 corporation; requiring certain applicants to pay a
47 specified premium for corporation coverage; providing
48 applicability; revising the rights and authorizations
49 for certain independent insurance agents; deleting a
50 prohibition relating to commercial nonresidential
51 policies; providing an effective date.
52
53 Be It Enacted by the Legislature of the State of Florida:
54
55 Section 1. Paragraph (oo) is added to subsection (6) of
56 section 627.351, Florida Statutes, to read:
57 627.351 Insurance risk apportionment plans.—
58 (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
59 (oo) The corporation must charge a premium on a commercial
60 residential or commercial nonresidential risk that has received
61 an offer of coverage under s. 627.3518(5)(c)2., which premium is
62 the greater of the premium offered by the approved surplus lines
63 clearinghouse insurer for such coverage or the premium for
64 coverage from the corporation calculated pursuant to paragraph
65 (n). The premium for subsequent renewals of a corporation policy
66 that is charged a premium equivalent to the premium offered by
67 an approved surplus lines insurer under s. 627.3518(5)(c)2. is
68 subject to the requirements of paragraph (n) as applied to the
69 premium that was applied pursuant to this paragraph, unless the
70 risk receives an offer at the subsequent renewal under s.
71 627.3518(5)(c)2., in which case the premium shall be the greater
72 of the premium offered at the subsequent renewal by the surplus
73 lines insurer or the corporation’s premium on the risk.
74 Section 2. Section 627.3518, Florida Statutes, is amended
75 to read:
76 627.3518 Citizens Property Insurance Corporation
77 policyholder eligibility clearinghouse program.—The purpose of
78 this section is to provide a framework for the corporation to
79 implement a clearinghouse program by January 1, 2014.
80 (1) As used in this section, the term:
81 (a) “Approved surplus lines clearinghouse insurer” means an
82 eligible surplus lines insurer that has a financial strength
83 rating of “A-” or higher from A.M. Best Company and that the
84 corporation determines has demonstrated competence in writing
85 the types of risks for which it will make offers of coverage
86 through the program.
87 (b) “Corporation” means Citizens Property Insurance
88 Corporation.
89 (c)(b) “Exclusive agent” means any licensed insurance agent
90 that has, by contract, agreed to act exclusively for one company
91 or group of affiliated insurance companies and is disallowed by
92 the provisions of that contract to directly write for any other
93 unaffiliated insurer absent express consent from the company or
94 group of affiliated insurance companies.
95 (d)(c) “Independent agent” means any licensed insurance
96 agent not described in paragraph (c) (b).
97 (e) “Primary residence” has the same meaning as in s.
98 627.351(6)(c)2.a.
99 (f)(d) “Program” means the clearinghouse created under this
100 section, consisting of the personal lines clearinghouse and the
101 commercial lines clearinghouse.
102 (g) “Surplus lines agent” means an insurance agent licensed
103 pursuant to s. 626.927 or s. 626.9272.
104 (2)(a) The corporation shall establish a personal lines
105 clearinghouse in order to confirm an applicant’s eligibility
106 with the corporation, and to enhance access of new applicants
107 for personal lines coverage and existing personal lines
108 policyholders of the corporation to offers of coverage from
109 authorized insurers, and the corporation shall establish a
110 program for personal residential risks in order to facilitate
111 the diversion of ineligible applicants and existing
112 policyholders from the corporation into the voluntary insurance
113 market.
114 (b) The corporation shall implement, on or before January
115 1, 2027, a commercial lines clearinghouse in order to enhance
116 new applicants access to commercial residential coverage and
117 commercial nonresidential coverage and existing policyholders of
118 the corporation to offers of coverage from approved surplus
119 lines clearinghouse insurers. The corporation shall also develop
120 and implement, on or before January 1, 2028, appropriate
121 procedures for facilitating the diversion of new ineligible
122 applicants and existing policyholders of the corporation to
123 offers of commercial residential and commercial nonresidential
124 coverage from authorized insurers for commercial residential
125 coverage into the private insurance market and shall report such
126 procedures to the President of the Senate and the Speaker of the
127 House of Representatives by January 1, 2014.
128 (3) The corporation board shall establish the clearinghouse
129 program as an organizational unit within the corporation. The
130 program shall have all the rights and responsibilities in
131 carrying out its duties as a licensed general lines agent and a
132 surplus lines agent, but may not be required to employ or engage
133 a licensed general lines agent or a surplus lines agent, or to
134 maintain an insurance agency license to carry out its activities
135 in the solicitation and placement of insurance coverage. In
136 establishing the program, the corporation has all of the
137 following rights and responsibilities may:
138 (a) May require all new applications, and all policies due
139 for renewal, to be submitted for coverage to the program in
140 order to facilitate obtaining an offer of coverage from an
141 authorized insurer or, if the risk is a commercial risk,
142 obtaining an offer of coverage from an approved surplus lines
143 clearinghouse insurer, before binding or renewing coverage by
144 the corporation.
145 (b) May employ or otherwise contract with individuals or
146 other entities for appropriate administrative or professional
147 services to effectuate the plan within the corporation in
148 accordance with the applicable purchasing requirements under s.
149 627.351 and, for purposes of implementing the commercial lines
150 clearinghouse and providing offers of coverage from approved
151 surplus lines clearinghouse insurers on or before January 1,
152 2028, contract with such individuals or entities in accordance
153 with s. 287.057(3)(c).
154 (c) May enter into contracts with any authorized insurer
155 and any approved surplus lines clearinghouse insurer to
156 participate in the program and accept an appointment by such
157 insurer.
158 (d) May provide funds to operate the program. Insurers and
159 agents participating in the program are not required to pay a
160 fee to offset or partially offset the cost of the program or use
161 the program for renewal of policies initially written through
162 the clearinghouse.
163 (e) May develop an enhanced application that includes
164 information to assist private insurers in determining whether to
165 make an offer of coverage through the program.
166 (f) For personal lines residential risks, may require that,
167 before approving all new applications for coverage by the
168 corporation, that every application be subject to a period of 2
169 business days when any insurer participating in the program may
170 select the application for coverage. The insurer may issue a
171 binder on any policy selected for coverage for a period of at
172 least 30 days but not more than 60 days.
173 (g) Shall, in creating the commercial lines clearinghouse,
174 establish criteria to determine the capabilities necessary to
175 effectively provide and manage the commercial lines
176 clearinghouse. For facilitating offers of surplus lines
177 coverage, such criteria must include confirmed expertise in the
178 surplus lines market, at least 5 years of publicly available
179 audited financial statements, the ability to facilitate all
180 approved surplus lines clearinghouse insurers to participate in
181 the commercial lines clearinghouse on terms established by the
182 corporation, and other criteria that the corporation determines
183 necessary to effectively establish and manage offers of surplus
184 lines coverage through the commercial lines clearinghouse.
185 (4) Any authorized insurer may participate in the program;
186 however, participation is not mandatory for any insurer.
187 Approved surplus lines clearinghouse insurers may participate in
188 the commercial lines clearinghouse but may not participate in
189 the personal lines clearinghouse; however, participation in the
190 program is not mandatory for any approved surplus lines insurer.
191 Insurers making offers of coverage to new applicants or renewal
192 policyholders through the program:
193 (a) May not be required to individually appoint any agent
194 whose customer is underwritten and bound through the program.
195 Notwithstanding s. 626.112, insurers are not required to appoint
196 any agent on a policy underwritten through the program for as
197 long as that policy remains with the insurer. Insurers may, at
198 their election, appoint any agent or surplus lines agent whose
199 direct or indirect customer is initially underwritten and bound
200 through the program. In the event an insurer accepts a policy
201 from an agent who is not appointed pursuant to this paragraph,
202 and thereafter elects to accept a policy from such agent, the
203 provisions of s. 626.112 requiring appointment apply to the
204 agent.
205 (b) Must enter into a limited agency agreement with each
206 agent or surplus lines agent that is not appointed in accordance
207 with paragraph (a) and whose customer is underwritten and bound
208 through the program. In addition, a surplus lines agent that
209 enters into a limited agency or broker agreement with an
210 approved surplus lines clearinghouse insurer making an offer of
211 coverage through the program must also enter into a limited
212 agency or broker agreement with each producing agent whose
213 customer is underwritten and bound through the program.
214 (c) Must enter into its standard agency agreement with each
215 agent or surplus lines agent whose customer is underwritten and
216 bound through the program when that agent or surplus lines agent
217 has been appointed by the insurer pursuant to s. 626.112.
218 (d) Must comply with s. 627.4133(2) or, if the insurer is
219 an approved surplus lines clearinghouse insurer, s. 626.9201.
220 (e) May participate through their single-designated
221 managing general agent or broker; however, the provisions of
222 paragraph (6)(a) regarding ownership, control, and use of the
223 expirations continue to apply.
224 (f) For authorized insurers, must pay to the producing
225 agent a commission equal to that paid by the corporation or the
226 usual and customary commission paid by the insurer for that line
227 of business, whichever is greater.
228 (g) For approved surplus lines clearinghouse insurers, must
229 pay a commission on premiums, exclusive of fees, surcharges, and
230 taxes, to the surplus lines agent, managing general agent, or
231 managing general underwriter placing the risk. The surplus lines
232 agent, managing general agent, or managing general underwriter
233 must pay the producing agent a commission at least equal to the
234 commission the corporation pays agents for coverage, calculated
235 in the same manner and on the same basis used by the
236 corporation, and shall retain the remainder of the total
237 commission or equivalent compensation. This paragraph does not
238 prohibit an agent from voluntarily accepting a lower commission
239 at the agent’s sole discretion.
240 (5)(a) Notwithstanding s. 627.3517, any applicant for new
241 personal lines coverage from the corporation is not eligible for
242 coverage from the corporation if provided an offer of comparable
243 coverage from an authorized insurer through the program at a
244 premium that is at or below the eligibility threshold for
245 applicants for new coverage of a primary residence established
246 in s. 627.351(6)(c)5.a., or for applicants for new coverage of a
247 risk that is not a primary residence established in s.
248 627.351(6)(c)5.b. Whenever an offer of comparable coverage for a
249 personal lines risk is received for a policyholder of the
250 corporation at renewal from an authorized insurer through the
251 program which is at or below the eligibility threshold for
252 primary residences of policyholders of the corporation
253 established in s. 627.351(6)(c)5.a., or the eligibility
254 threshold for risks that are not primary residences of
255 policyholders of the corporation established in s.
256 627.351(6)(c)5.b., the risk is not eligible for coverage with
257 the corporation. In the event an offer of coverage for a new
258 applicant is received from an authorized insurer through the
259 program, and the premium offered exceeds the eligibility
260 threshold for applicants for new coverage of a primary residence
261 established in s. 627.351(6)(c)5.a., or the eligibility
262 threshold for applicants for new coverage on a risk that is not
263 a primary residence established in s. 627.351(6)(c)5.b., the
264 applicant or insured may elect to accept such coverage, or may
265 elect to accept or continue coverage with the corporation. In
266 the event an offer of coverage for a personal lines risk is
267 received from an authorized insurer at renewal through the
268 program, and the premium offered exceeds the eligibility
269 threshold for primary residences of policyholders of the
270 corporation established in s. 627.351(6)(c)5.a., or exceeds the
271 eligibility threshold for risks that are not primary residences
272 of policyholders of the corporation established in s.
273 627.351(6)(c)5.b., the insured may elect to accept such
274 coverage, or may elect to accept or continue coverage with the
275 corporation. Section 627.351(6)(c)5.a.(I) and b.(I) does not
276 apply to an offer of coverage from an authorized insurer
277 obtained through the program. As used in this subsection, the
278 term “primary residence” has the same meaning as in s.
279 627.351(6)(c)2.a.
280 (b) Notwithstanding s. 627.3517, an applicant for new
281 commercial lines residential coverage from the corporation is
282 not eligible for coverage from the corporation if the applicant
283 is provided an offer of comparable coverage from an authorized
284 insurer through the program at a premium that is at or below the
285 eligibility threshold for applicants for new coverage
286 established in s. 627.351(6)(c)5.c. Whenever an offer of
287 comparable coverage for a commercial lines residential risk is
288 received for a policyholder of the corporation at renewal from
289 an authorized insurer through the program which is at or below
290 the eligibility threshold in s. 627.351(6)(c)5.c., the risk is
291 not eligible for coverage with the corporation. In the event an
292 offer of coverage for a new applicant is received from an
293 authorized insurer through the program, and the premium offered
294 exceeds the eligibility threshold established in s.
295 627.351(6)(c)5.c., the applicant or insured may elect to accept
296 such coverage or to accept or continue coverage with the
297 corporation. In the event an offer of coverage for a commercial
298 lines residential risk is received from an authorized insurer at
299 renewal through the program, and the premium offered exceeds the
300 eligibility threshold for policyholders of the corporation
301 established in s. 627.351(6)(c)5.c., the insured may elect to
302 accept such coverage or to accept or continue coverage with the
303 corporation. Section 627.351(6)(c)5.c.(I) does not apply to an
304 offer of coverage from an authorized insurer obtained through
305 the program.
306 (c)1. Except as provided in subparagraph 2., any applicant
307 for new coverage from the corporation and any policyholder of
308 the corporation that is offered commercial lines residential or
309 commercial lines residential coverage pursuant to the program by
310 an approved surplus lines clearinghouse insurer remains eligible
311 for coverage from the corporation. The applicant or insured
312 receiving an offer from an approved surplus lines clearinghouse
313 insurer may elect to accept such coverage or may elect to accept
314 or continue coverage with the corporation.
315 2. Any applicant for new coverage from the corporation and
316 any policyholder of the corporation that is offered commercial
317 lines residential or commercial lines nonresidential coverage by
318 an approved surplus lines insurer pursuant to the program, if
319 such coverage is equivalent to or greater than coverage from the
320 corporation as to all aspects of such coverage and is for a
321 premium that is not more than 20 percent greater than the
322 premium for corporation coverage that will be paid by an
323 applicant for corporation coverage or will be paid at renewal by
324 a policyholder of the corporation, may elect to accept such
325 coverage from the approved surplus lines clearinghouse insurer
326 or may elect to accept or continue coverage with the
327 corporation, but, if electing corporation coverage, such
328 applicant or policyholder must pay a premium for corporation
329 coverage that is the greater of the premium for such coverage
330 from the corporation or from the approved surplus lines
331 clearinghouse insurer.
332 3. Section 627.351(6)(c)5.c.(I) does not apply to an offer
333 of coverage from an approved surplus lines clearinghouse insurer
334 obtained through the program.
335 (6) Independent insurance agents submitting new
336 applications for coverage or that are the agent of record on a
337 renewal policy submitted to the program:
338 (a) Are granted and must maintain ownership and the
339 exclusive use of expirations, records, or other written or
340 electronic information directly related to such applications or
341 renewals written through the corporation or through an insurer
342 participating in the program, notwithstanding s. 627.351(5)(a),
343 s. 627.351(6)(c)5.a.(I)(B) and (II)(B), or s.
344 627.351(6)(c)5.b.(I)(B) and (II)(B). Such ownership is granted
345 for as long as the insured remains with the agency or until sold
346 or surrendered in writing by the agent. Contracts with the
347 corporation, or required by the corporation, or with any insurer
348 or surplus lines agent must not amend, modify, interfere with,
349 or limit such rights of ownership. Such expirations, records, or
350 other written or electronic information may be used to review an
351 application, issue a policy, or for any other purpose necessary
352 for placing such business through the program.
353 (b) May not be required to be appointed by any insurer
354 participating in the program for policies written solely through
355 the program, notwithstanding the provisions of s. 626.112.
356 (c) May accept an appointment from any insurer
357 participating in the program.
358 (d) May enter into either a standard or limited agency
359 agreement with the insurer, at the insurer’s option, and may
360 enter into agreements with a surplus lines agent.
361
362 Applicants ineligible for coverage in accordance with subsection
363 (5) remain ineligible if their independent agent is unwilling or
364 unable to enter into a standard or limited agency agreement with
365 an insurer participating in the program.
366 (7) Exclusive agents submitting new applications for
367 coverage or that are the agent of record on a renewal policy
368 submitted to the program:
369 (a) Must maintain ownership and the exclusive use of
370 expirations, records, or other written or electronic information
371 directly related to such applications or renewals written
372 through the corporation or through an insurer participating in
373 the program, notwithstanding s. 627.351(6)(c)5.a.(I)(B) and
374 (II)(B) or s. 627.351(6)(c)5.b.(I)(B) and (II)(B). Contracts
375 with the corporation or required by the corporation must not
376 amend, modify, interfere with, or limit such rights of
377 ownership. Such expirations, records, or other written or
378 electronic information may be used to review an application,
379 issue a policy, or for any other purpose necessary for placing
380 such business through the program.
381 (b) May not be required to be appointed by any insurer
382 participating in the program for policies written solely through
383 the program, notwithstanding the provisions of s. 626.112.
384 (c) Must only facilitate the placement of an offer of
385 coverage from an insurer whose limited servicing agreement is
386 approved by that exclusive agent’s exclusive insurer.
387 (d) May enter into a limited servicing agreement with the
388 insurer making an offer of coverage, and only after the
389 exclusive agent’s insurer has approved the limited servicing
390 agreement terms. The exclusive agent’s insurer must approve a
391 limited service agreement for the program for any insurer for
392 which it has approved a service agreement for other purposes.
393
394 Applicants ineligible for coverage in accordance with subsection
395 (5) remain ineligible if their exclusive agent is unwilling or
396 unable to enter into a standard or limited agency agreement with
397 an insurer making an offer of coverage to that applicant.
398 (8) Submission of an application for coverage by the
399 corporation to the program does not constitute the binding of
400 coverage by the corporation, and failure of the program to
401 obtain an offer of coverage by an insurer may not be considered
402 acceptance of coverage of the risk by the corporation.
403 (9) The 45-day notice of nonrenewal requirement set forth
404 in s. 627.4133(2)(b)5. applies when a policy is nonrenewed by
405 the corporation because the risk has received an offer of
406 coverage pursuant to this section which renders the risk
407 ineligible for coverage by the corporation.
408 (10) The program may not include commercial nonresidential
409 policies.
410 (11) Proprietary business information provided to the
411 corporation’s clearinghouse by insurers with respect to
412 identifying and selecting risks for an offer of coverage is
413 confidential and exempt from s. 119.07(1) and s. 24(a), Art. I
414 of the State Constitution.
415 (a) As used in this subsection, the term “proprietary
416 business information” means information, regardless of form or
417 characteristics, which is owned or controlled by an insurer and:
418 1. Is identified by the insurer as proprietary business
419 information and is intended to be and is treated by the insurer
420 as private in that the disclosure of the information would cause
421 harm to the insurer, an individual, or the company’s business
422 operations and has not been disclosed unless disclosed pursuant
423 to a statutory requirement, an order of a court or
424 administrative body, or a private agreement that provides that
425 the information will not be released to the public;
426 2. Is not otherwise readily ascertainable or publicly
427 available by proper means by other persons from another source
428 in the same configuration as provided to the clearinghouse; and
429 3. Includes:
430 a. Trade secrets, as defined in s. 688.002.
431 b. Information relating to competitive interests, the
432 disclosure of which would impair the competitive business of the
433 provider of the information.
434
435 Proprietary business information may be found in underwriting
436 criteria or instructions which are used to identify and select
437 risks through the program for an offer of coverage and are
438 shared with the clearinghouse to facilitate the shopping of
439 risks with the insurer.
440 (b) The clearinghouse may disclose confidential and exempt
441 proprietary business information:
442 1. If the insurer to which it pertains gives prior written
443 consent;
444 2. Pursuant to a court order; or
445 3. To another state agency in this or another state or to a
446 federal agency if the recipient agrees in writing to maintain
447 the confidential and exempt status of the document, material, or
448 other information and has verified in writing its legal
449 authority to maintain such confidentiality.
450 Section 3. This act shall take effect upon becoming a law.