Florida Senate - 2022 SB 1728 By Senator Boyd 21-01768A-22 20221728__ 1 A bill to be entitled 2 An act relating to property insurance; amending s. 3 489.147, F.S.; revising the definition of the term 4 prohibited advertisement; amending s. 627.351, F.S.; 5 deleting obsolete provisions related to eligibility 6 thresholds for personal lines residential coverage 7 with the Citizens Property Insurance Corporation; 8 requiring the corporation to use a method for valuing 9 dwelling replacement costs which is approved by the 10 Office of Insurance Regulation; specifying 11 qualifications requirements for certain members of the 12 board of governors for the corporation; revising 13 conditions for eligibility for coverage with the 14 corporation; providing for a required limited annual 15 rate increase for specified polices; defining the term 16 primary residence; providing that eligible surplus 17 lines insurers may participate, in the same manner and 18 on the same terms as an authorized insurer, in 19 depopulation, take-out, or keepout programs relating 20 to policies removed from Citizens Property Insurance 21 Corporation; providing certain exceptions, conditions, 22 and requirements relating to such participation by a 23 surplus lines insurer in the corporations 24 depopulation, take-out, or keepout programs; providing 25 thresholds for eligibility for coverage by the 26 corporation for risks that are offered coverage from 27 qualified surplus lines insurers; authorizing 28 information from underwriting files and confidential 29 claims files to be released under certain 30 circumstances by the corporation to specified entities 31 that consider writing or underwriting risks insured by 32 the corporation; specifying that only the 33 corporations transfer of a policy file to an insurer, 34 as opposed to the transfer of any file, changes the 35 files public record status; revising the contents of 36 a specified notice provided by the corporation; 37 amending s. 627.3518, F.S.; deleting an obsolete 38 provision related to implementing the clearinghouse 39 program by a specified date; deleting an obsolete 40 reporting requirement; conforming provisions to 41 changes made by the act; amending s. 627.7011, F.S.; 42 providing that certain provisions relating to 43 homeowners policies do not prohibit insurers from 44 providing limited coverage on personal lines 45 residential property insurance policies by including 46 roof surface type reimbursement schedules; providing 47 requirements for roof surface type reimbursement 48 schedules; authorizing the conversion of a residential 49 property insurance policy to a roof surface type 50 reimbursement schedule under certain circumstances; 51 providing that certain provisions relating to 52 homeowners policies do not prohibit insurers from 53 providing coverage on personal lines residential 54 property insurance policies that limits roof coverage 55 to a stated value sublimit of coverage; providing 56 requirements for stated value sublimits of coverages; 57 providing that certain provisions relating to 58 homeowners policies do not prohibit certain insurers 59 from offering roof reimbursement on the basis of 60 replacement costs; reenacting ss. 624.424(10), 61 627.3517, and 627.712(1), F.S., relating to annual 62 insurer statements, consumer choice, and required 63 residential windstorm coverage, respectively, to 64 incorporate the amendments made to s. 627.351, F.S., 65 in references thereto; providing an effective date. 66 67 Be It Enacted by the Legislature of the State of Florida: 68 69 Section 1.Paragraph (a) of subsection (1) of section 70 489.147, Florida Statutes, is amended to read: 71 489.147Prohibited property insurance practices. 72 (1)As used in this section, the term: 73 (a)Prohibited advertisement means any written or 74 electronic communication by a contractor which that encourages, 75 instructs, or induces a consumer to contact a contractor or 76 public adjuster for the purpose of making an insurance claim for 77 roof damage, if such communication does not state in a font size 78 of at least 12 points and at least half as large as the largest 79 font size used in the communication that: 80 1.The consumer is responsible for payment of any insurance 81 deductible; 82 2.It is insurance fraud punishable as a felony of the 83 third degree for a contractor to pay, waive, or rebate all or 84 part of an insurance deductible applicable to payment to the 85 contractor for repairs to property covered by a property 86 insurance policy; and 87 3.It is insurance fraud punishable as a felony of the 88 third degree to intentionally file an insurance claim containing 89 any false, incomplete, or misleading information. 90 91 The term includes, but is not limited to, door hangers, business 92 cards, magnets, flyers, pamphlets, and e-mails. 93 Section 2.Paragraphs (a), (c), (n), (q), (x), and (ii) of 94 subsection (6) of section 627.351, Florida Statutes, are amended 95 to read: 96 627.351Insurance risk apportionment plans. 97 (6)CITIZENS PROPERTY INSURANCE CORPORATION. 98 (a)The public purpose of this subsection is to ensure that 99 there is an orderly market for property insurance for residents 100 and businesses of this state. 101 1.The Legislature finds that private insurers are 102 unwilling or unable to provide affordable property insurance 103 coverage in this state to the extent sought and needed. The 104 absence of affordable property insurance threatens the public 105 health, safety, and welfare and likewise threatens the economic 106 health of the state. The state therefore has a compelling public 107 interest and a public purpose to assist in assuring that 108 property in this the state is insured and that it is insured at 109 affordable rates so as to facilitate the remediation, 110 reconstruction, and replacement of damaged or destroyed property 111 in order to reduce or avoid the negative effects otherwise 112 resulting to the public health, safety, and welfare, to the 113 economy of the state, and to the revenues of the state and local 114 governments which are needed to provide for the public welfare. 115 It is necessary, therefore, to provide affordable property 116 insurance to applicants who are in good faith entitled to 117 procure insurance through the voluntary market but are unable to 118 do so. The Legislature intends, therefore, that affordable 119 property insurance be provided and that it continue to be 120 provided, as long as necessary, through Citizens Property 121 Insurance Corporation, a government entity that is an integral 122 part of the state, and that is not a private insurance company. 123 To that end, the corporation shall strive to increase the 124 availability of affordable property insurance in this state, 125 while achieving efficiencies and economies, and while providing 126 service to policyholders, applicants, and agents which is no 127 less than the quality generally provided in the voluntary 128 market, for the achievement of the foregoing public purposes. 129 Because it is essential for this government entity to have the 130 maximum financial resources to pay claims following a 131 catastrophic hurricane, it is the intent of the Legislature that 132 the corporation continue to be an integral part of the state and 133 that the income of the corporation be exempt from federal income 134 taxation and that interest on the debt obligations issued by the 135 corporation be exempt from federal income taxation. 136 2.The Residential Property and Casualty Joint Underwriting 137 Association originally created by this statute shall be known as 138 the Citizens Property Insurance Corporation. The corporation 139 shall provide insurance for residential and commercial property, 140 for applicants who are entitled, but, in good faith, are unable 141 to procure insurance through the voluntary market. The 142 corporation shall operate pursuant to a plan of operation 143 approved by order of the Financial Services Commission. The plan 144 is subject to continuous review by the commission. The 145 commission may, by order, withdraw approval of all or part of a 146 plan if the commission determines that conditions have changed 147 since approval was granted and that the purposes of the plan 148 require changes in the plan. For the purposes of this 149 subsection, residential coverage includes both personal lines 150 residential coverage, which consists of the type of coverage 151 provided by homeowner, mobile home owner, dwelling, tenant, 152 condominium unit owner, and similar policies; and commercial 153 lines residential coverage, which consists of the type of 154 coverage provided by condominium association, apartment 155 building, and similar policies. 156 3.With respect to coverage for personal lines residential 157 structures, and: 158 a.Effective January 1, 2014, a structure that has a 159 dwelling replacement cost of $1 million or more, or a single 160 condominium unit that has a combined dwelling and contents 161 replacement cost of $1 million or more, is not eligible for 162 coverage by the corporation. Such dwellings insured by the 163 corporation on December 31, 2013, may continue to be covered by 164 the corporation until the end of the policy term. The office 165 shall approve the method used by the corporation for valuing the 166 dwelling replacement cost for the purposes of this subparagraph. 167 If a policyholder is insured by the corporation before being 168 determined to be ineligible pursuant to this subparagraph and 169 such policyholder files a lawsuit challenging the determination, 170 the policyholder may remain insured by the corporation until the 171 conclusion of the litigation. 172 b.Effective January 1, 2015, a structure that has a 173 dwelling replacement cost of $900,000 or more, or a single 174 condominium unit that has a combined dwelling and contents 175 replacement cost of $900,000 or more, is not eligible for 176 coverage by the corporation. Such dwellings insured by the 177 corporation on December 31, 2014, may continue to be covered by 178 the corporation only until the end of the policy term. 179 c.Effective January 1, 2016, a structure that has a 180 dwelling replacement cost of $800,000 or more, or a single 181 condominium unit that has a combined dwelling and contents 182 replacement cost of $800,000 or more, is not eligible for 183 coverage by the corporation. Such dwellings insured by the 184 corporation on December 31, 2015, may continue to be covered by 185 the corporation until the end of the policy term. 186 d.effective January 1, 2017, a structure that has a 187 dwelling replacement cost of $700,000 or more, or a single 188 condominium unit that has a combined dwelling and contents 189 replacement cost of $700,000 or more, is not eligible for 190 coverage by the corporation. The corporation must use a method 191 for valuing the dwelling replacement cost which is approved by 192 the office Such dwellings insured by the corporation on December 193 31, 2016, may continue to be covered by the corporation until 194 the end of the policy term. The requirements of sub 195 subparagraphs b.-d. do not apply However, in counties where the 196 office determines there is not a reasonable degree of 197 competition,. In such counties a personal lines residential 198 structure that has a dwelling replacement cost of less than $1 199 million, or a single condominium unit that has a combined 200 dwelling and contents replacement cost of less than $1 million, 201 is eligible for coverage by the corporation. 202 4.It is the intent of the Legislature that policyholders, 203 applicants, and agents of the corporation receive service and 204 treatment of the highest possible level but never less than that 205 generally provided in the voluntary market. It is also intended 206 that the corporation be held to service standards no less than 207 those applied to insurers in the voluntary market by the office 208 with respect to responsiveness, timeliness, customer courtesy, 209 and overall dealings with policyholders, applicants, or agents 210 of the corporation. 211 5.a.Effective January 1, 2009, a personal lines 212 residential structure that is located in the wind-borne debris 213 region, as defined in s. 1609.2, International Building Code 214 (2006), and that has an insured value on the structure of 215 $750,000 or more is not eligible for coverage by the corporation 216 unless the structure has opening protections as required under 217 the Florida Building Code for a newly constructed residential 218 structure in that area. A residential structure is deemed to 219 comply with this sub-subparagraph if it has shutters or opening 220 protections on all openings and if such opening protections 221 complied with the Florida Building Code at the time they were 222 installed. 223 b.Any major structure, as defined in s. 161.54(6)(a), that 224 is newly constructed, or rebuilt, repaired, restored, or 225 remodeled to increase the total square footage of finished area 226 by more than 25 percent, pursuant to a permit applied for after 227 July 1, 2015, is not eligible for coverage by the corporation if 228 the structure is seaward of the coastal construction control 229 line established pursuant to s. 161.053 or is within the Coastal 230 Barrier Resources System as designated by 16 U.S.C. ss. 3501 231 3510. 232 6.With respect to wind-only coverage for commercial lines 233 residential condominiums, effective July 1, 2014, a condominium 234 shall be deemed ineligible for coverage if 50 percent or more of 235 the units are rented more than eight times in a calendar year 236 for a rental agreement period of less than 30 days. 237 (c)The corporations plan of operation: 238 1.Must provide for adoption of residential property and 239 casualty insurance policy forms and commercial residential and 240 nonresidential property insurance forms, which must be approved 241 by the office before use. The corporation shall adopt the 242 following policy forms: 243 a.Standard personal lines policy forms that are 244 comprehensive multiperil policies providing full coverage of a 245 residential property equivalent to the coverage provided in the 246 private insurance market under an HO-3, HO-4, or HO-6 policy. 247 b.Basic personal lines policy forms that are policies 248 similar to an HO-8 policy or a dwelling fire policy that provide 249 coverage meeting the requirements of the secondary mortgage 250 market, but which is more limited than the coverage under a 251 standard policy. 252 c.Commercial lines residential and nonresidential policy 253 forms that are generally similar to the basic perils of full 254 coverage obtainable for commercial residential structures and 255 commercial nonresidential structures in the admitted voluntary 256 market. 257 d.Personal lines and commercial lines residential property 258 insurance forms that cover the peril of wind only. The forms are 259 applicable only to residential properties located in areas 260 eligible for coverage under the coastal account referred to in 261 sub-subparagraph (b)2.a. 262 e.Commercial lines nonresidential property insurance forms 263 that cover the peril of wind only. The forms are applicable only 264 to nonresidential properties located in areas eligible for 265 coverage under the coastal account referred to in sub 266 subparagraph (b)2.a. 267 f.The corporation may adopt variations of the policy forms 268 listed in sub-subparagraphs a.-e. which contain more restrictive 269 coverage. 270 g.Effective January 1, 2013, the corporation shall offer a 271 basic personal lines policy similar to an HO-8 policy with 272 dwelling repair based on common construction materials and 273 methods. 274 2.Must provide that the corporation adopt a program in 275 which the corporation and authorized insurers enter into quota 276 share primary insurance agreements for hurricane coverage, as 277 defined in s. 627.4025(2)(a), for eligible risks, and adopt 278 property insurance forms for eligible risks which cover the 279 peril of wind only. 280 a.As used in this subsection, the term: 281 (I)Quota share primary insurance means an arrangement in 282 which the primary hurricane coverage of an eligible risk is 283 provided in specified percentages by the corporation and an 284 authorized insurer. The corporation and authorized insurer are 285 each solely responsible for a specified percentage of hurricane 286 coverage of an eligible risk as set forth in a quota share 287 primary insurance agreement between the corporation and an 288 authorized insurer and the insurance contract. The 289 responsibility of the corporation or authorized insurer to pay 290 its specified percentage of hurricane losses of an eligible 291 risk, as set forth in the agreement, may not be altered by the 292 inability of the other party to pay its specified percentage of 293 losses. Eligible risks that are provided hurricane coverage 294 through a quota share primary insurance arrangement must be 295 provided policy forms that set forth the obligations of the 296 corporation and authorized insurer under the arrangement, 297 clearly specify the percentages of quota share primary insurance 298 provided by the corporation and authorized insurer, and 299 conspicuously and clearly state that the authorized insurer and 300 the corporation may not be held responsible beyond their 301 specified percentage of coverage of hurricane losses. 302 (II)Eligible risks means personal lines residential and 303 commercial lines residential risks that meet the underwriting 304 criteria of the corporation and are located in areas that were 305 eligible for coverage by the Florida Windstorm Underwriting 306 Association on January 1, 2002. 307 b.The corporation may enter into quota share primary 308 insurance agreements with authorized insurers at corporation 309 coverage levels of 90 percent and 50 percent. 310 c.If the corporation determines that additional coverage 311 levels are necessary to maximize participation in quota share 312 primary insurance agreements by authorized insurers, the 313 corporation may establish additional coverage levels. However, 314 the corporations quota share primary insurance coverage level 315 may not exceed 90 percent. 316 d.Any quota share primary insurance agreement entered into 317 between an authorized insurer and the corporation must provide 318 for a uniform specified percentage of coverage of hurricane 319 losses, by county or territory as set forth by the corporation 320 board, for all eligible risks of the authorized insurer covered 321 under the agreement. 322 e.Any quota share primary insurance agreement entered into 323 between an authorized insurer and the corporation is subject to 324 review and approval by the office. However, such agreement shall 325 be authorized only as to insurance contracts entered into 326 between an authorized insurer and an insured who is already 327 insured by the corporation for wind coverage. 328 f.For all eligible risks covered under quota share primary 329 insurance agreements, the exposure and coverage levels for both 330 the corporation and authorized insurers shall be reported by the 331 corporation to the Florida Hurricane Catastrophe Fund. For all 332 policies of eligible risks covered under such agreements, the 333 corporation and the authorized insurer must maintain complete 334 and accurate records for the purpose of exposure and loss 335 reimbursement audits as required by fund rules. The corporation 336 and the authorized insurer shall each maintain duplicate copies 337 of policy declaration pages and supporting claims documents. 338 g.The corporation board shall establish in its plan of 339 operation standards for quota share agreements which ensure that 340 there is no discriminatory application among insurers as to the 341 terms of the agreements, pricing of the agreements, incentive 342 provisions if any, and consideration paid for servicing policies 343 or adjusting claims. 344 h.The quota share primary insurance agreement between the 345 corporation and an authorized insurer must set forth the 346 specific terms under which coverage is provided, including, but 347 not limited to, the sale and servicing of policies issued under 348 the agreement by the insurance agent of the authorized insurer 349 producing the business, the reporting of information concerning 350 eligible risks, the payment of premium to the corporation, and 351 arrangements for the adjustment and payment of hurricane claims 352 incurred on eligible risks by the claims adjuster and personnel 353 of the authorized insurer. Entering into a quota sharing 354 insurance agreement between the corporation and an authorized 355 insurer is voluntary and at the discretion of the authorized 356 insurer. 357 3.May provide that the corporation may employ or otherwise 358 contract with individuals or other entities to provide 359 administrative or professional services that may be appropriate 360 to effectuate the plan. The corporation may borrow funds by 361 issuing bonds or by incurring other indebtedness, and shall have 362 other powers reasonably necessary to effectuate the requirements 363 of this subsection, including, without limitation, the power to 364 issue bonds and incur other indebtedness in order to refinance 365 outstanding bonds or other indebtedness. The corporation may 366 seek judicial validation of its bonds or other indebtedness 367 under chapter 75. The corporation may issue bonds or incur other 368 indebtedness, or have bonds issued on its behalf by a unit of 369 local government pursuant to subparagraph (q)2. in the absence 370 of a hurricane or other weather-related event, upon a 371 determination by the corporation, subject to approval by the 372 office, that such action would enable it to efficiently meet the 373 financial obligations of the corporation and that such 374 financings are reasonably necessary to effectuate the 375 requirements of this subsection. The corporation may take all 376 actions needed to facilitate tax-free status for such bonds or 377 indebtedness, including formation of trusts or other affiliated 378 entities. The corporation may pledge assessments, projected 379 recoveries from the Florida Hurricane Catastrophe Fund, other 380 reinsurance recoverables, policyholder surcharges and other 381 surcharges, and other funds available to the corporation as 382 security for bonds or other indebtedness. In recognition of s. 383 10, Art. I of the State Constitution, prohibiting the impairment 384 of obligations of contracts, it is the intent of the Legislature 385 that no action be taken whose purpose is to impair any bond 386 indenture or financing agreement or any revenue source committed 387 by contract to such bond or other indebtedness. 388 4.Must require that the corporation operate subject to the 389 supervision and approval of a board of governors consisting of 390 nine individuals who are residents of this state and who are 391 from different geographical areas of the state, one of whom is 392 appointed by the Governor and serves solely to advocate on 393 behalf of the consumer. The appointment of a consumer 394 representative by the Governor is deemed to be within the scope 395 of the exemption provided in s. 112.313(7)(b) and is in addition 396 to the appointments authorized under sub-subparagraph a. 397 a.The Governor, the Chief Financial Officer, the President 398 of the Senate, and the Speaker of the House of Representatives 399 shall each appoint two members of the board. At least one of the 400 two members appointed by each appointing officer must have 401 demonstrated expertise in insurance of at least 10 years 402 experience with property and casualty insurance as a full-time 403 employee, officer, or owner of a licensed insurance agency, an 404 insurer authorized to transact property insurance in this state, 405 or an insurance trade association and be deemed to be within the 406 scope of the exemption provided in s. 112.313(7)(b). The Chief 407 Financial Officer shall designate one of the appointees with 408 demonstrated expertise in insurance as chair. All board members 409 serve at the pleasure of the appointing officer. All members of 410 the board are subject to removal at will by the officers who 411 appointed them. All board members, including the chair, must be 412 appointed to serve for 3-year terms beginning annually on a date 413 designated by the plan. However, for the first term beginning on 414 or after July 1, 2009, each appointing officer shall appoint one 415 member of the board for a 2-year term and one member for a 3 416 year term. A board vacancy shall be filled for the unexpired 417 term by the appointing officer. The Chief Financial Officer 418 shall appoint a technical advisory group to provide information 419 and advice to the board in connection with the boards duties 420 under this subsection. The executive director and senior 421 managers of the corporation shall be engaged by the board and 422 serve at the pleasure of the board. The executive director must 423 have the experience, character, and qualifications required 424 under s. 624.404(3) to serve as the chief executive officer of 425 an insurer. Any executive director appointed on or after July 1, 426 2006, is subject to confirmation by the Senate. The executive 427 director is responsible for employing other staff as the 428 corporation may require, subject to review and concurrence by 429 the board. 430 b.The board shall create a Market Accountability Advisory 431 Committee to assist the corporation in developing awareness of 432 its rates and its customer and agent service levels in 433 relationship to the voluntary market insurers writing similar 434 coverage. 435 (I)The members of the advisory committee consist of the 436 following 11 persons, one of whom must be elected chair by the 437 members of the committee: four representatives, one appointed by 438 the Florida Association of Insurance Agents, one by the Florida 439 Association of Insurance and Financial Advisors, one by the 440 Professional Insurance Agents of Florida, and one by the Latin 441 American Association of Insurance Agencies; three 442 representatives appointed by the insurers with the three highest 443 voluntary market share of residential property insurance 444 business in the state; one representative from the Office of 445 Insurance Regulation; one consumer appointed by the board who is 446 insured by the corporation at the time of appointment to the 447 committee; one representative appointed by the Florida 448 Association of Realtors; and one representative appointed by the 449 Florida Bankers Association. All members shall be appointed to 450 3-year terms and may serve for consecutive terms. 451 (II)The committee shall report to the corporation at each 452 board meeting on insurance market issues which may include rates 453 and rate competition with the voluntary market; service, 454 including policy issuance, claims processing, and general 455 responsiveness to policyholders, applicants, and agents; and 456 matters relating to depopulation. 457 5.Must provide a procedure for determining the eligibility 458 of a risk for coverage, as follows: 459 a.Subject to s. 627.3517, with respect to personal lines 460 residential risks, if the risk is offered coverage from an 461 authorized insurer at the insurers approved rate under a 462 standard policy including wind coverage or, if consistent with 463 the insurers underwriting rules as filed with the office, a 464 basic policy including wind coverage, for a new application to 465 the corporation for coverage, the risk is not eligible for any 466 policy issued by the corporation unless the premium for coverage 467 from the authorized insurer is more than 20 percent greater than 468 the premium for comparable coverage from the corporation. 469 Whenever an offer of coverage for a personal lines residential 470 risk is received for a policyholder of the corporation at 471 renewal from an authorized insurer, if the offer is equal to or 472 less than the corporations renewal premium for comparable 473 coverage, the risk is not eligible for coverage with the 474 corporation unless the premium for coverage from the authorized 475 insurer is more than 20 percent greater than the renewal premium 476 for comparable coverage from the corporation. If the risk is not 477 able to obtain such offer, the risk is eligible for a standard 478 policy including wind coverage or a basic policy including wind 479 coverage issued by the corporation; however, if the risk could 480 not be insured under a standard policy including wind coverage 481 regardless of market conditions, the risk is eligible for a 482 basic policy including wind coverage unless rejected under 483 subparagraph 8. However, A policyholder removed from the 484 corporation through an assumption agreement is not remains 485 eligible for coverage from the corporation until the end of the 486 assumption period. The corporation shall determine the type of 487 policy to be provided on the basis of objective standards 488 specified in the underwriting manual and based on generally 489 accepted underwriting practices. 490 (I)If the risk accepts an offer of coverage through the 491 market assistance plan or through a mechanism established by the 492 corporation other than a plan established by s. 627.3518, before 493 a policy is issued to the risk by the corporation or during the 494 first 30 days of coverage by the corporation, and the producing 495 agent who submitted the application to the plan or to the 496 corporation is not currently appointed by the insurer, the 497 insurer shall: 498 (A)Pay to the producing agent of record of the policy for 499 the first year, an amount that is the greater of the insurers 500 usual and customary commission for the type of policy written or 501 a fee equal to the usual and customary commission of the 502 corporation; or 503 (B)Offer to allow the producing agent of record of the 504 policy to continue servicing the policy for at least 1 year and 505 offer to pay the agent the greater of the insurers or the 506 corporations usual and customary commission for the type of 507 policy written. 508 509 If the producing agent is unwilling or unable to accept 510 appointment, the new insurer shall pay the agent in accordance 511 with sub-sub-sub-subparagraph (A). 512 (II)If the corporation enters into a contractual agreement 513 for a take-out plan, the producing agent of record of the 514 corporation policy is entitled to retain any unearned commission 515 on the policy, and the insurer shall: 516 (A)Pay to the producing agent of record, for the first 517 year, an amount that is the greater of the insurers usual and 518 customary commission for the type of policy written or a fee 519 equal to the usual and customary commission of the corporation; 520 or 521 (B)Offer to allow the producing agent of record to 522 continue servicing the policy for at least 1 year and offer to 523 pay the agent the greater of the insurers or the corporations 524 usual and customary commission for the type of policy written. 525 526 If the producing agent is unwilling or unable to accept 527 appointment, the new insurer shall pay the agent in accordance 528 with sub-sub-sub-subparagraph (A). 529 b.With respect to commercial lines residential risks, for 530 a new application to the corporation for coverage, if the risk 531 is offered coverage under a policy including wind coverage from 532 an authorized insurer at its approved rate, the risk is not 533 eligible for a policy issued by the corporation unless the 534 premium for coverage from the authorized insurer is more than 20 535 15 percent greater than the premium for comparable coverage from 536 the corporation. Whenever an offer of coverage for a commercial 537 lines residential risk is received for a policyholder of the 538 corporation at renewal from an authorized insurer, if the offer 539 is equal to or less than the corporations renewal premium for 540 comparable coverage, the risk is not eligible for coverage with 541 the corporation unless the premium for coverage from the 542 authorized insurer is more than 20 percent greater than the 543 renewal premium for comparable coverage from the corporation. If 544 the risk is not able to obtain any such offer, the risk is 545 eligible for a policy including wind coverage issued by the 546 corporation. However, A policyholder removed from the 547 corporation through an assumption agreement is not remains 548 eligible for coverage from the corporation until the end of the 549 assumption period. 550 (I)If the risk accepts an offer of coverage through the 551 market assistance plan or through a mechanism established by the 552 corporation other than a plan established by s. 627.3518, before 553 a policy is issued to the risk by the corporation or during the 554 first 30 days of coverage by the corporation, and the producing 555 agent who submitted the application to the plan or the 556 corporation is not currently appointed by the insurer, the 557 insurer shall: 558 (A)Pay to the producing agent of record of the policy, for 559 the first year, an amount that is the greater of the insurers 560 usual and customary commission for the type of policy written or 561 a fee equal to the usual and customary commission of the 562 corporation; or 563 (B)Offer to allow the producing agent of record of the 564 policy to continue servicing the policy for at least 1 year and 565 offer to pay the agent the greater of the insurers or the 566 corporations usual and customary commission for the type of 567 policy written. 568 569 If the producing agent is unwilling or unable to accept 570 appointment, the new insurer shall pay the agent in accordance 571 with sub-sub-sub-subparagraph (A). 572 (II)If the corporation enters into a contractual agreement 573 for a take-out plan, the producing agent of record of the 574 corporation policy is entitled to retain any unearned commission 575 on the policy, and the insurer shall: 576 (A)Pay to the producing agent of record, for the first 577 year, an amount that is the greater of the insurers usual and 578 customary commission for the type of policy written or a fee 579 equal to the usual and customary commission of the corporation; 580 or 581 (B)Offer to allow the producing agent of record to 582 continue servicing the policy for at least 1 year and offer to 583 pay the agent the greater of the insurers or the corporations 584 usual and customary commission for the type of policy written. 585 586 If the producing agent is unwilling or unable to accept 587 appointment, the new insurer shall pay the agent in accordance 588 with sub-sub-sub-subparagraph (A). 589 c.For purposes of determining comparable coverage under 590 sub-subparagraphs a. and b., the comparison must be based on 591 those forms and coverages that are reasonably comparable. The 592 corporation may rely on a determination of comparable coverage 593 and premium made by the producing agent who submits the 594 application to the corporation, made in the agents capacity as 595 the corporations agent. A comparison may be made solely of the 596 premium with respect to the main building or structure only on 597 the following basis: the same coverage A or other building 598 limits; the same percentage hurricane deductible that applies on 599 an annual basis or that applies to each hurricane for commercial 600 residential property; the same percentage of ordinance and law 601 coverage, if the same limit is offered by both the corporation 602 and the authorized insurer; the same mitigation credits, to the 603 extent the same types of credits are offered both by the 604 corporation and the authorized insurer; the same method for loss 605 payment, such as replacement cost or actual cash value, if the 606 same method is offered both by the corporation and the 607 authorized insurer in accordance with underwriting rules; and 608 any other form or coverage that is reasonably comparable as 609 determined by the board. If an application is submitted to the 610 corporation for wind-only coverage in the coastal account, the 611 premium for the corporations wind-only policy plus the premium 612 for the ex-wind policy that is offered by an authorized insurer 613 to the applicant must be compared to the premium for multiperil 614 coverage offered by an authorized insurer, subject to the 615 standards for comparison specified in this subparagraph. If the 616 corporation or the applicant requests from the authorized 617 insurer a breakdown of the premium of the offer by types of 618 coverage so that a comparison may be made by the corporation or 619 its agent and the authorized insurer refuses or is unable to 620 provide such information, the corporation may treat the offer as 621 not being an offer of coverage from an authorized insurer at the 622 insurers approved rate. 623 6.Must include rules for classifications of risks and 624 rates. 625 7.Must provide that if premium and investment income for 626 an account attributable to a particular calendar year are in 627 excess of projected losses and expenses for the account 628 attributable to that year, such excess shall be held in surplus 629 in the account. Such surplus must be available to defray 630 deficits in that account as to future years and used for that 631 purpose before assessing assessable insurers and assessable 632 insureds as to any calendar year. 633 8.Must provide objective criteria and procedures to be 634 uniformly applied to all applicants in determining whether an 635 individual risk is so hazardous as to be uninsurable. In making 636 this determination and in establishing the criteria and 637 procedures, the following must be considered: 638 a.Whether the likelihood of a loss for the individual risk 639 is substantially higher than for other risks of the same class; 640 and 641 b.Whether the uncertainty associated with the individual 642 risk is such that an appropriate premium cannot be determined. 643 644 The acceptance or rejection of a risk by the corporation shall 645 be construed as the private placement of insurance, and the 646 provisions of chapter 120 do not apply. 647 9.Must provide that the corporation make its best efforts 648 to procure catastrophe reinsurance at reasonable rates, to cover 649 its projected 100-year probable maximum loss as determined by 650 the board of governors. If catastrophe reinsurance is not 651 available at reasonable rates, the corporation need not purchase 652 it, but the corporation shall include the costs of reinsurance 653 to cover its projected 100-year probable maximum loss in its 654 rate calculations even if it does not purchase catastrophe 655 reinsurance. 656 10.The policies issued by the corporation must provide 657 that if the corporation or the market assistance plan obtains an 658 offer from an authorized insurer to cover the risk at its 659 approved rates, the risk is no longer eligible for renewal 660 through the corporation, except as otherwise provided in this 661 subsection. 662 11.Corporation policies and applications must include a 663 notice that the corporation policy could, under this section, be 664 replaced with a policy issued by an authorized insurer which 665 does not provide coverage identical to the coverage provided by 666 the corporation. The notice must also specify that acceptance of 667 corporation coverage creates a conclusive presumption that the 668 applicant or policyholder is aware of this potential. 669 12.May establish, subject to approval by the office, 670 different eligibility requirements and operational procedures 671 for any line or type of coverage for any specified county or 672 area if the board determines that such changes are justified due 673 to the voluntary market being sufficiently stable and 674 competitive in such area or for such line or type of coverage 675 and that consumers who, in good faith, are unable to obtain 676 insurance through the voluntary market through ordinary methods 677 continue to have access to coverage from the corporation. If 678 coverage is sought in connection with a real property transfer, 679 the requirements and procedures may not provide an effective 680 date of coverage later than the date of the closing of the 681 transfer as established by the transferor, the transferee, and, 682 if applicable, the lender. 683 13.Must provide that, with respect to the coastal account, 684 any assessable insurer with a surplus as to policyholders of $25 685 million or less writing 25 percent or more of its total 686 countrywide property insurance premiums in this state may 687 petition the office, within the first 90 days of each calendar 688 year, to qualify as a limited apportionment company. A regular 689 assessment levied by the corporation on a limited apportionment 690 company for a deficit incurred by the corporation for the 691 coastal account may be paid to the corporation on a monthly 692 basis as the assessments are collected by the limited 693 apportionment company from its insureds, but a limited 694 apportionment company must begin collecting the regular 695 assessments not later than 90 days after the regular assessments 696 are levied by the corporation, and the regular assessments must 697 be paid in full within 15 months after being levied by the 698 corporation. A limited apportionment company shall collect from 699 its policyholders any emergency assessment imposed under sub 700 subparagraph (b)3.d. The plan must provide that, if the office 701 determines that any regular assessment will result in an 702 impairment of the surplus of a limited apportionment company, 703 the office may direct that all or part of such assessment be 704 deferred as provided in subparagraph (q)4. However, an emergency 705 assessment to be collected from policyholders under sub 706 subparagraph (b)3.d. may not be limited or deferred. 707 14.Must provide that the corporation appoint as its 708 licensed agents only those agents who throughout such 709 appointments also hold an appointment as defined in s. 626.015 710 by an insurer who is authorized to write and is actually writing 711 or renewing personal lines residential property coverage, 712 commercial residential property coverage, or commercial 713 nonresidential property coverage within the state. 714 15.Must provide a premium payment plan option to its 715 policyholders which, at a minimum, allows for quarterly and 716 semiannual payment of premiums. A monthly payment plan may, but 717 is not required to, be offered. 718 16.Must limit coverage on mobile homes or manufactured 719 homes built before 1994 to actual cash value of the dwelling 720 rather than replacement costs of the dwelling. 721 17.Must provide coverage for manufactured or mobile home 722 dwellings. Such coverage must also include the following 723 attached structures: 724 a.Screened enclosures that are aluminum framed or screened 725 enclosures that are not covered by the same or substantially the 726 same materials as those of the primary dwelling; 727 b.Carports that are aluminum or carports that are not 728 covered by the same or substantially the same materials as those 729 of the primary dwelling; and 730 c.Patios that have a roof covering that is constructed of 731 materials that are not the same or substantially the same 732 materials as those of the primary dwelling. 733 734 The corporation shall make available a policy for mobile homes 735 or manufactured homes for a minimum insured value of at least 736 $3,000. 737 18.May provide such limits of coverage as the board 738 determines, consistent with the requirements of this subsection. 739 19.May require commercial property to meet specified 740 hurricane mitigation construction features as a condition of 741 eligibility for coverage. 742 20.Must provide that new or renewal policies issued by the 743 corporation on or after January 1, 2012, which cover sinkhole 744 loss do not include coverage for any loss to appurtenant 745 structures, driveways, sidewalks, decks, or patios that are 746 directly or indirectly caused by sinkhole activity. The 747 corporation shall exclude such coverage using a notice of 748 coverage change, which may be included with the policy renewal, 749 and not by issuance of a notice of nonrenewal of the excluded 750 coverage upon renewal of the current policy. 751 21.As of January 1, 2012, must require that the agent 752 obtain from an applicant for coverage from the corporation an 753 acknowledgment signed by the applicant, which includes, at a 754 minimum, the following statement: 755 756 ACKNOWLEDGMENT OF POTENTIAL SURCHARGE 757 AND ASSESSMENT LIABILITY: 758 759 1.AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE 760 CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A 761 DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON, 762 MY POLICY COULD BE SUBJECT TO SURCHARGES, WHICH WILL BE DUE AND 763 PAYABLE UPON RENEWAL, CANCELLATION, OR TERMINATION OF THE 764 POLICY, AND THAT THE SURCHARGES COULD BE AS HIGH AS 45 PERCENT 765 OF MY PREMIUM, OR A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA 766 LEGISLATURE. 767 2.I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER 768 SURCHARGE, WHICH COULD BE AS HIGH AS 45 PERCENT OF MY PREMIUM, 769 BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND THAT TO 770 BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN 771 PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR RENEWING COVERAGE 772 WITH CITIZENS. I UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES 773 ARE REGULATED AND APPROVED BY THE STATE. 774 3.I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY 775 ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER 776 INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE 777 FLORIDA LEGISLATURE. 778 4.I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE 779 CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE 780 STATE OF FLORIDA. 781 782 a.The corporation shall maintain, in electronic format or 783 otherwise, a copy of the applicants signed acknowledgment and 784 provide a copy of the statement to the policyholder as part of 785 the first renewal after the effective date of this subparagraph. 786 b.The signed acknowledgment form creates a conclusive 787 presumption that the policyholder understood and accepted his or 788 her potential surcharge and assessment liability as a 789 policyholder of the corporation. 790 (n)1.Rates for coverage provided by the corporation must 791 be actuarially sound and subject to s. 627.062, except as 792 otherwise provided in this paragraph. The corporation shall file 793 its recommended rates with the office at least annually. The 794 corporation shall provide any additional information regarding 795 the rates which the office requires. The office shall consider 796 the recommendations of the board and issue a final order 797 establishing the rates for the corporation within 45 days after 798 the recommended rates are filed. The corporation may not pursue 799 an administrative challenge or judicial review of the final 800 order of the office. 801 2.In addition to the rates otherwise determined pursuant 802 to this paragraph, the corporation shall impose and collect an 803 amount equal to the premium tax provided in s. 624.509 to 804 augment the financial resources of the corporation. 805 3.After the public hurricane loss-projection model under 806 s. 627.06281 has been found to be accurate and reliable by the 807 Florida Commission on Hurricane Loss Projection Methodology, the 808 model shall be considered when establishing the windstorm 809 portion of the corporations rates. The corporation may use the 810 public model results in combination with the results of private 811 models to calculate rates for the windstorm portion of the 812 corporations rates. This subparagraph does not require or allow 813 the corporation to adopt rates lower than the rates otherwise 814 required or allowed by this paragraph. 815 4.The corporation must make a recommended actuarially 816 sound rate filing for each personal and commercial line of 817 business it writes. 818 5.Notwithstanding the boards recommended rates and the 819 offices final order regarding the corporations filed rates 820 under subparagraph 1., the corporation shall annually implement 821 a rate increase which, except for sinkhole coverage, does not 822 exceed the following for any single personal lines residential 823 policy issued by the corporation that covers an insureds 824 primary residence, and any single commercial lines residential 825 policy issued by the corporation, excluding coverage changes and 826 surcharges: 827 a.Eleven percent for 2022. 828 b.Twelve percent for 2023. 829 c.Thirteen percent for 2024. 830 d.Fourteen percent for 2025. 831 e.Fifteen percent for 2026 and all subsequent years. 832 6.The corporation may also implement an increase to 833 reflect the effect on the corporation of the cash buildup factor 834 pursuant to s. 215.555(5)(b). 835 7.The corporations implementation of rates as prescribed 836 in subparagraph 5. shall cease for any line of business written 837 by the corporation upon the corporations implementation of 838 actuarially sound rates. Thereafter, the corporation shall 839 annually make a recommended actuarially sound rate filing for 840 each commercial and personal line of business the corporation 841 writes. 842 8.As used in this paragraph, primary residence means the 843 dwelling that the insured has represented as their permanent 844 home on the insurance application or otherwise to the 845 corporation. 846 (q)1.The corporation shall certify to the office its needs 847 for annual assessments as to a particular calendar year, and for 848 any interim assessments that it deems to be necessary to sustain 849 operations as to a particular year pending the receipt of annual 850 assessments. Upon verification, the office shall approve such 851 certification, and the corporation shall levy such annual or 852 interim assessments. Such assessments shall be prorated as 853 provided in paragraph (b). The corporation shall take all 854 reasonable and prudent steps necessary to collect the amount of 855 assessments due from each assessable insurer, including, if 856 prudent, filing suit to collect the assessments, and the office 857 may provide such assistance to the corporation it deems 858 appropriate. If the corporation is unable to collect an 859 assessment from any assessable insurer, the uncollected 860 assessments shall be levied as an additional assessment against 861 the assessable insurers and any assessable insurer required to 862 pay an additional assessment as a result of such failure to pay 863 shall have a cause of action against such nonpaying assessable 864 insurer. Assessments shall be included as an appropriate factor 865 in the making of rates. The failure of a surplus lines agent to 866 collect and remit any regular or emergency assessment levied by 867 the corporation is considered to be a violation of s. 626.936 868 and subjects the surplus lines agent to the penalties provided 869 in that section. 870 2.The governing body of any unit of local government, any 871 residents of which are insured by the corporation, may issue 872 bonds as defined in s. 125.013 or s. 166.101 from time to time 873 to fund an assistance program, in conjunction with the 874 corporation, for the purpose of defraying deficits of the 875 corporation. In order to avoid needless and indiscriminate 876 proliferation, duplication, and fragmentation of such assistance 877 programs, any unit of local government, any residents of which 878 are insured by the corporation, may provide for the payment of 879 losses, regardless of whether or not the losses occurred within 880 or outside of the territorial jurisdiction of the local 881 government. Revenue bonds under this subparagraph may not be 882 issued until validated pursuant to chapter 75, unless a state of 883 emergency is declared by executive order or proclamation of the 884 Governor pursuant to s. 252.36 making such findings as are 885 necessary to determine that it is in the best interests of, and 886 necessary for, the protection of the public health, safety, and 887 general welfare of residents of this state and declaring it an 888 essential public purpose to permit certain municipalities or 889 counties to issue such bonds as will permit relief to claimants 890 and policyholders of the corporation. Any such unit of local 891 government may enter into such contracts with the corporation 892 and with any other entity created pursuant to this subsection as 893 are necessary to carry out this paragraph. Any bonds issued 894 under this subparagraph shall be payable from and secured by 895 moneys received by the corporation from emergency assessments 896 under sub-subparagraph (b)3.d., and assigned and pledged to or 897 on behalf of the unit of local government for the benefit of the 898 holders of such bonds. The funds, credit, property, and taxing 899 power of the state or of the unit of local government shall not 900 be pledged for the payment of such bonds. 901 3.a.The corporation shall adopt one or more programs 902 subject to approval by the office for the reduction of both new 903 and renewal writings in the corporation. Beginning January 1, 904 2008, any program the corporation adopts for the payment of 905 bonuses to an insurer for each risk the insurer removes from the 906 corporation shall comply with s. 627.3511(2) and may not exceed 907 the amount referenced in s. 627.3511(2) for each risk removed. 908 The corporation may consider any prudent and not unfairly 909 discriminatory approach to reducing corporation writings, and 910 may adopt a credit against assessment liability or other 911 liability that provides an incentive for insurers to take risks 912 out of the corporation and to keep risks out of the corporation 913 by maintaining or increasing voluntary writings in counties or 914 areas in which corporation risks are highly concentrated and a 915 program to provide a formula under which an insurer voluntarily 916 taking risks out of the corporation by maintaining or increasing 917 voluntary writings will be relieved wholly or partially from 918 assessments under sub-subparagraph (b)3.a. However, any take 919 out bonus or payment to an insurer must be conditioned on the 920 property being insured for at least 5 years by the insurer, 921 unless canceled or nonrenewed by the policyholder. If the policy 922 is canceled or nonrenewed by the policyholder before the end of 923 the 5-year period, the amount of the take-out bonus must be 924 prorated for the time period the policy was insured. When the 925 corporation enters into a contractual agreement for a take-out 926 plan, the producing agent of record of the corporation policy is 927 entitled to retain any unearned commission on such policy, and 928 the insurer shall either: 929 (I)Pay to the producing agent of record of the policy, for 930 the first year, an amount which is the greater of the insurers 931 usual and customary commission for the type of policy written or 932 a policy fee equal to the usual and customary commission of the 933 corporation; or 934 (II)Offer to allow the producing agent of record of the 935 policy to continue servicing the policy for a period of not less 936 than 1 year and offer to pay the agent the insurers usual and 937 customary commission for the type of policy written. If the 938 producing agent is unwilling or unable to accept appointment by 939 the new insurer, the new insurer shall pay the agent in 940 accordance with sub-sub-subparagraph (I). 941 b.Any credit or exemption from regular assessments adopted 942 under this subparagraph shall last no longer than the 3 years 943 following the cancellation or expiration of the policy by the 944 corporation. With the approval of the office, the board may 945 extend such credits for an additional year if the insurer 946 guarantees an additional year of renewability for all policies 947 removed from the corporation, or for 2 additional years if the 948 insurer guarantees 2 additional years of renewability for all 949 policies so removed. 950 c.There shall be no credit, limitation, exemption, or 951 deferment from emergency assessments to be collected from 952 policyholders pursuant to sub-subparagraph (b)3.d. 953 d.Notwithstanding any other law, for purposes of a 954 depopulation, take-out, or keepout program adopted by the 955 corporation, including an initial or renewal offer of coverage 956 made to a policyholder removed from the corporation pursuant to 957 such program, an eligible surplus lines insurer may participate 958 in the program in the same manner and on the same terms as an 959 authorized insurer, except as provided under this sub 960 subparagraph. 961 (I)To qualify for participation, the surplus lines insurer 962 must first obtain approval from the office for its depopulation, 963 take-out, or keepout plan and then comply with all of the 964 corporations requirements for the plan applicable to admitted 965 insurers and with all statutory provisions applicable to the 966 removal of policies from the corporation. 967 (II)In considering a surplus lines insurers request for 968 approval for its plan, the office shall determine whether the 969 surplus lines insurer meets the following requirements: 970 (A)Maintains a surplus of $50 million on a company or 971 pooled basis; 972 (B)Has a superior, excellent, exceptional, or equally 973 comparable financial strength rating by a rating agency 974 acceptable to the office; 975 (C)Maintains reserves, surplus, reinsurance, and 976 reinsurance equivalents sufficient to cover the insurers 100 977 year probable maximum hurricane loss at least twice in a single 978 hurricane season and submits such reinsurance to the office to 979 review for purposes of the take-out; 980 (D)Provides prominent notice to the policyholder before 981 the assumption of the policy that surplus lines policies are not 982 provided coverage by the Florida Insurance Guaranty Association 983 and provides an outline of any substantial differences in 984 coverage between the existing policy and the policy being 985 offered to the insured; and 986 (E)Provides policy coverage similar to that provided by 987 the corporation. 988 (III)To obtain approval for a plan, the surplus lines 989 insurer must file the following with the office: 990 (A)Information requested by the office to demonstrate 991 compliance with s. 624.404(3), including biographical 992 affidavits, fingerprints processed pursuant to s. 624.34, and 993 the results of criminal history records checks for officers and 994 directors of the insurer and its parent or holding company; 995 (B)A service-of-process consent and agreement form 996 executed by the insurer; 997 (C)Proof that the insurer has been an eligible or 998 authorized insurer for at least 3 years; 999 (D)A duly authenticated copy of the insurers current 1000 audited financial statement, in English, which, in the case of 1001 statements originally made in the currencies of other countries, 1002 expresses all monetary values in United States dollars, at an 1003 exchange rate then current and shown in the statement, and 1004 including any additional information relative to the insurer as 1005 the office may request; 1006 (E)A complete certified copy of the latest official 1007 financial statement required by the insurers domiciliary state, 1008 if different from the statement required by sub-sub-sub 1009 subparagraph (D); and 1010 (F)If applicable, a copy of the United States trust 1011 account agreement. 1012 1013 This sub-sub-subparagraph does not subject any surplus lines 1014 insurer to requirements in addition to part VIII of chapter 626. 1015 Surplus lines brokers making an offer of coverage under this 1016 sub-subparagraph are not required to comply with s. 1017 626.916(1)(a), (b), (c), or (e). 1018 (IV)Within 10 days after the date of assumption, the 1019 surplus lines insurer assuming policies from the corporation 1020 shall remit to the Bureau of Collateral Management within the 1021 Department of Financial Services a special deposit equal to the 1022 unearned premium net of unearned commissions on the assumed 1023 block of business. The surplus lines insurer shall submit to the 1024 office, along with the special deposit, an accounting of the 1025 policies assumed and the amount of unearned premium for such 1026 policies and a sworn affidavit attesting to the accuracy of the 1027 accounting by an officer of the surplus lines insurer. 1028 Thereafter, the surplus lines insurer shall make a filing within 1029 10 days after the end of each calendar quarter attesting to the 1030 unearned premium in force for the previous quarter on policies 1031 assumed from the corporation and shall submit additional funds 1032 with that filing if the special deposit is insufficient to cover 1033 the unearned premium on assumed policies, or shall receive a 1034 return of funds within 60 days if the special deposit exceeds 1035 the amount of unearned premium required for assumed policies. 1036 The special deposit is an asset of the surplus lines insurer 1037 which is held by the department for the benefit of state 1038 policyholders of the surplus lines insurer in the event of the 1039 insolvency of the surplus lines insurer. If an order of 1040 liquidation is entered in any state against the surplus lines 1041 insurer, the department may use the special deposit for payment 1042 of unearned premium or policy claims, return all or part of the 1043 deposit to the domiciliary receiver, or use the funds in 1044 accordance with any action authorized under part I of chapter 1045 631 or in compliance with any order of a court having 1046 jurisdiction over the insolvency. 1047 (V)In advance of a surplus lines insurer assuming a 1048 policy, surplus lines brokers representing a surplus lines 1049 insurer on a take-out program shall obtain confirmation, in 1050 written or e-mail form, from each producing agent stating that 1051 the agent is willing to participate in the take-out program with 1052 the surplus lines insurer engaging in the take-out program. The 1053 take-out program is also subject to s. 627.3517. If a 1054 policyholder is selected for removal from the corporation by a 1055 surplus lines insurer and an authorized insurer, the corporation 1056 must give priority to the offer of coverage from the authorized 1057 insurer. 1058 (VI)(A)A risk that has a dwelling replacement cost of 1059 $700,000 or more or a single condominium unit that has a 1060 combined dwelling and contents replacement cost of $700,000 or 1061 more is not eligible for coverage by the corporation if it is 1062 offered comparable coverage from a qualified surplus lines 1063 insurer at a premium no greater than 20 percent above the 1064 premium charged by the corporation. 1065 (B)A risk that has a dwelling replacement cost below 1066 $700,000 or a single condominium unit that has a combined 1067 dwelling and contents replacement cost below $700,000 remains 1068 eligible for coverage by the corporation if it is offered 1069 coverage from a qualified surplus lines insurer. 1070 4.The plan shall provide for the deferment, in whole or in 1071 part, of the assessment of an assessable insurer, other than an 1072 emergency assessment collected from policyholders pursuant to 1073 sub-subparagraph (b)3.d., if the office finds that payment of 1074 the assessment would endanger or impair the solvency of the 1075 insurer. In the event an assessment against an assessable 1076 insurer is deferred in whole or in part, the amount by which 1077 such assessment is deferred may be assessed against the other 1078 assessable insurers in a manner consistent with the basis for 1079 assessments set forth in paragraph (b). 1080 5.Effective July 1, 2007, in order to evaluate the costs 1081 and benefits of approved take-out plans, if the corporation pays 1082 a bonus or other payment to an insurer for an approved take-out 1083 plan, it shall maintain a record of the address or such other 1084 identifying information on the property or risk removed in order 1085 to track if and when the property or risk is later insured by 1086 the corporation. 1087 6.Any policy taken out, assumed, or removed from the 1088 corporation is, as of the effective date of the take-out, 1089 assumption, or removal, direct insurance issued by the insurer 1090 and not by the corporation, even if the corporation continues to 1091 service the policies. This subparagraph applies to policies of 1092 the corporation and not policies taken out, assumed, or removed 1093 from any other entity. 1094 7.For a policy taken out, assumed, or removed from the 1095 corporation, the insurer may, for a period of no more than 3 1096 years, continue to use any of the corporations policy forms or 1097 endorsements that apply to the policy taken out, removed, or 1098 assumed without obtaining approval from the office for use of 1099 such policy form or endorsement. 1100 (x)1.The following records of the corporation are 1101 confidential and exempt from the provisions of s. 119.07(1) and 1102 s. 24(a), Art. I of the State Constitution: 1103 a.Underwriting files, except that a policyholder or an 1104 applicant shall have access to his or her own underwriting 1105 files. Confidential and exempt underwriting file records may 1106 also be released to other governmental agencies upon written 1107 request and demonstration of need; such records held by the 1108 receiving agency remain confidential and exempt as provided 1109 herein. 1110 b.Claims files, until termination of all litigation and 1111 settlement of all claims arising out of the same incident, 1112 although portions of the claims files may remain exempt, as 1113 otherwise provided by law. Confidential and exempt claims file 1114 records may be released to other governmental agencies upon 1115 written request and demonstration of need; such records held by 1116 the receiving agency remain confidential and exempt as provided 1117 herein. 1118 c.Records obtained or generated by an internal auditor 1119 pursuant to a routine audit, until the audit is completed, or if 1120 the audit is conducted as part of an investigation, until the 1121 investigation is closed or ceases to be active. An investigation 1122 is considered active while the investigation is being 1123 conducted with a reasonable, good faith belief that it could 1124 lead to the filing of administrative, civil, or criminal 1125 proceedings. 1126 d.Matters reasonably encompassed in privileged attorney 1127 client communications. 1128 e.Proprietary information licensed to the corporation 1129 under contract and the contract provides for the confidentiality 1130 of such proprietary information. 1131 f.All information relating to the medical condition or 1132 medical status of a corporation employee which is not relevant 1133 to the employees capacity to perform his or her duties, except 1134 as otherwise provided in this paragraph. Information that is 1135 exempt includes shall include, but is not limited to, 1136 information relating to workers compensation, insurance 1137 benefits, and retirement or disability benefits. 1138 g.Upon an employees entrance into the employee assistance 1139 program, a program to assist any employee who has a behavioral 1140 or medical disorder, substance abuse problem, or emotional 1141 difficulty that affects the employees job performance, all 1142 records relative to that participation are shall be confidential 1143 and exempt from the provisions of s. 119.07(1) and s. 24(a), 1144 Art. I of the State Constitution, except as otherwise provided 1145 in s. 112.0455(11). 1146 h.Information relating to negotiations for financing, 1147 reinsurance, depopulation, or contractual services, until the 1148 conclusion of the negotiations. 1149 i.Minutes of closed meetings regarding underwriting files, 1150 and minutes of closed meetings regarding an open claims file 1151 until termination of all litigation and settlement of all claims 1152 with regard to that claim, except that information otherwise 1153 confidential or exempt by law must shall be redacted. 1154 2.If an authorized insurer, a reinsurance intermediary, an 1155 eligible surplus lines insurer, or an entity that has filed an 1156 application with the office for licensure as a property and 1157 casualty insurer in this state is considering writing or 1158 assisting in the underwriting of a risk insured by the 1159 corporation, relevant information from both the underwriting 1160 files and confidential claims files may be released to the 1161 insurer, reinsurance intermediary, eligible surplus lines 1162 insurer, or entity that has been created to seek authority to 1163 write property insurance in this state, provided that the 1164 recipient insurer agrees in writing, notarized and under oath, 1165 to maintain the confidentiality of such files. If a policy file 1166 is transferred to an insurer, that policy file is no longer a 1167 public record because it is not held by an agency subject to the 1168 provisions of the public records law. Underwriting files and 1169 confidential claims files may also be released to staff and the 1170 board of governors of the market assistance plan established 1171 pursuant to s. 627.3515, who must retain the confidentiality of 1172 such files, except such files may be released to authorized 1173 insurers that are considering assuming the risks to which the 1174 files apply, provided the insurer agrees in writing, notarized 1175 and under oath, to maintain the confidentiality of such files. 1176 Finally, the corporation or the board or staff of the market 1177 assistance plan may make the following information obtained from 1178 underwriting files and confidential claims files available to an 1179 entity that has obtained a permit to become an authorized 1180 insurer, a reinsurer that may provide reinsurance under s. 1181 624.610, a licensed reinsurance broker, a licensed rating 1182 organization, a modeling company, or a licensed general lines 1183 insurance agent: name, address, and telephone number of the 1184 residential property owner or insured; location of the risk; 1185 rating information; loss history; and policy type. The receiving 1186 person must retain the confidentiality of the information 1187 received and may use the information only for the purposes of 1188 developing a take-out plan or a rating plan to be submitted to 1189 the office for approval or otherwise analyzing the underwriting 1190 of a risk or risks insured by the corporation on behalf of the 1191 private insurance market. A licensed general lines insurance 1192 agent may not use such information for the direct solicitation 1193 of policyholders. 1194 3.A policyholder who has filed suit against the 1195 corporation has the right to discover the contents of his or her 1196 own claims file to the same extent that discovery of such 1197 contents would be available from a private insurer in litigation 1198 as provided by the Florida Rules of Civil Procedure, the Florida 1199 Evidence Code, and other applicable law. Pursuant to subpoena, a 1200 third party has the right to discover the contents of an 1201 insureds or applicants underwriting or claims file to the same 1202 extent that discovery of such contents would be available from a 1203 private insurer by subpoena as provided by the Florida Rules of 1204 Civil Procedure, the Florida Evidence Code, and other applicable 1205 law, and subject to any confidentiality protections requested by 1206 the corporation and agreed to by the seeking party or ordered by 1207 the court. The corporation may release confidential underwriting 1208 and claims file contents and information as it deems necessary 1209 and appropriate to underwrite or service insurance policies and 1210 claims, subject to any confidentiality protections deemed 1211 necessary and appropriate by the corporation. 1212 4.Portions of meetings of the corporation are exempt from 1213 the provisions of s. 286.011 and s. 24(b), Art. I of the State 1214 Constitution wherein confidential underwriting files or 1215 confidential open claims files are discussed. All portions of 1216 corporation meetings which are closed to the public shall be 1217 recorded by a court reporter. The court reporter shall record 1218 the times of commencement and termination of the meeting, all 1219 discussion and proceedings, the names of all persons present at 1220 any time, and the names of all persons speaking. No portion of 1221 any closed meeting shall be off the record. Subject to the 1222 provisions hereof and s. 119.07(1)(d)-(f), the court reporters 1223 notes of any closed meeting shall be retained by the corporation 1224 for a minimum of 5 years. A copy of the transcript, less any 1225 exempt matters, of any closed meeting wherein claims are 1226 discussed shall become public as to individual claims after 1227 settlement of the claim. 1228 (ii)The corporation shall revise the programs adopted 1229 pursuant to sub-subparagraph (q)3.a. for personal lines 1230 residential policies to maximize policyholder options and 1231 encourage increased participation by insurers and agents. After 1232 January 1, 2017, a policy may not be taken out of the 1233 corporation unless the provisions of this paragraph are met. 1234 1.The corporation must publish a periodic schedule of 1235 cycles during which an insurer may identify, and notify the 1236 corporation of, policies that the insurer is requesting to take 1237 out. A request must include a description of the coverage 1238 offered and an estimated premium and must be submitted to the 1239 corporation in a form and manner prescribed by the corporation. 1240 2.The corporation must maintain and make available to the 1241 agent of record a consolidated list of all insurers requesting 1242 to take out a policy. The list must include a description of the 1243 coverage offered and the estimated premium for each take-out 1244 request. 1245 3.The corporation must provide written notice to the 1246 policyholder and the agent of record regarding all insurers 1247 requesting to take out the policy, which notice must inform that 1248 a take-out offer that is not more than 20 percent greater than 1249 the corporations premium renders the risk ineligible for 1250 coverage from and regarding the policyholders option to accept 1251 a take-out offer or to reject all take-out offers and to remain 1252 with the corporation. The notice must be in a format prescribed 1253 by the corporation and include, for each take-out offer: 1254 a.The amount of the estimated premium; 1255 b.A description of the coverage; and 1256 c.A comparison of the estimated premium and coverage 1257 offered by the insurer to the estimated premium and coverage 1258 provided by the corporation. 1259 Section 3.Section 627.3518, Florida Statutes, is amended 1260 to read: 1261 627.3518Citizens Property Insurance Corporation 1262 policyholder eligibility clearinghouse program.The purpose of 1263 this section is to provide a framework for the corporation to 1264 implement a clearinghouse program by January 1, 2014. 1265 (1)As used in this section, the term: 1266 (a)Corporation means Citizens Property Insurance 1267 Corporation. 1268 (b)Exclusive agent means any licensed insurance agent 1269 that has, by contract, agreed to act exclusively for one company 1270 or group of affiliated insurance companies and is disallowed by 1271 the provisions of that contract to directly write for any other 1272 unaffiliated insurer absent express consent from the company or 1273 group of affiliated insurance companies. 1274 (c)Independent agent means any licensed insurance agent 1275 not described in paragraph (b). 1276 (d)Program means the clearinghouse created under this 1277 section. 1278 (2)In order to confirm eligibility with the corporation 1279 and to enhance access of new applicants for coverage and 1280 existing policyholders of the corporation to offers of coverage 1281 from authorized insurers, the corporation shall establish a 1282 program for personal residential risks in order to facilitate 1283 the diversion of ineligible applicants and existing 1284 policyholders from the corporation into the voluntary insurance 1285 market. The corporation shall also develop appropriate 1286 procedures for facilitating the diversion of ineligible 1287 applicants and existing policyholders for commercial residential 1288 coverage into the private insurance market and shall report such 1289 procedures to the President of the Senate and the Speaker of the 1290 House of Representatives by January 1, 2014. 1291 (3)The corporation board shall establish the clearinghouse 1292 program as an organizational unit within the corporation. The 1293 program shall have all the rights and responsibilities in 1294 carrying out its duties as a licensed general lines agent, but 1295 may not be required to employ or engage a licensed general lines 1296 agent or to maintain an insurance agency license to carry out 1297 its activities in the solicitation and placement of insurance 1298 coverage. In establishing the program, the corporation may: 1299 (a)Require all new applications, and all policies due for 1300 renewal, to be submitted for coverage to the program in order to 1301 facilitate obtaining an offer of coverage from an authorized 1302 insurer before binding or renewing coverage by the corporation. 1303 (b)Employ or otherwise contract with individuals or other 1304 entities for appropriate administrative or professional services 1305 to effectuate the plan within the corporation in accordance with 1306 the applicable purchasing requirements under s. 627.351. 1307 (c)Enter into contracts with any authorized insurer to 1308 participate in the program and accept an appointment by such 1309 insurer. 1310 (d)Provide funds to operate the program. Insurers and 1311 agents participating in the program are not required to pay a 1312 fee to offset or partially offset the cost of the program or use 1313 the program for renewal of policies initially written through 1314 the clearinghouse. 1315 (e)Develop an enhanced application that includes 1316 information to assist private insurers in determining whether to 1317 make an offer of coverage through the program. 1318 (f)For personal lines residential risks, require, before 1319 approving all new applications for coverage by the corporation, 1320 that every application be subject to a period of 2 business days 1321 when any insurer participating in the program may select the 1322 application for coverage. The insurer may issue a binder on any 1323 policy selected for coverage for a period of at least 30 days 1324 but not more than 60 days. 1325 (4)Any authorized insurer may participate in the program; 1326 however, participation is not mandatory for any insurer. 1327 Insurers making offers of coverage to new applicants or renewal 1328 policyholders through the program: 1329 (a)May not be required to individually appoint any agent 1330 whose customer is underwritten and bound through the program. 1331 Notwithstanding s. 626.112, insurers are not required to appoint 1332 any agent on a policy underwritten through the program for as 1333 long as that policy remains with the insurer. Insurers may, at 1334 their election, appoint any agent whose customer is initially 1335 underwritten and bound through the program. In the event an 1336 insurer accepts a policy from an agent who is not appointed 1337 pursuant to this paragraph, and thereafter elects to accept a 1338 policy from such agent, the provisions of s. 626.112 requiring 1339 appointment apply to the agent. 1340 (b)Must enter into a limited agency agreement with each 1341 agent that is not appointed in accordance with paragraph (a) and 1342 whose customer is underwritten and bound through the program. 1343 (c)Must enter into its standard agency agreement with each 1344 agent whose customer is underwritten and bound through the 1345 program when that agent has been appointed by the insurer 1346 pursuant to s. 626.112. 1347 (d)Must comply with s. 627.4133(2). 1348 (e)May participate through their single-designated 1349 managing general agent or broker; however, the provisions of 1350 paragraph (6)(a) regarding ownership, control, and use of the 1351 expirations continue to apply. 1352 (f)Must pay to the producing agent a commission equal to 1353 that paid by the corporation or the usual and customary 1354 commission paid by the insurer for that line of business, 1355 whichever is greater. 1356 (5)Notwithstanding s. 627.3517, any applicant for new 1357 coverage from the corporation is not eligible for coverage from 1358 the corporation if provided an offer of coverage from an 1359 authorized insurer through the program at a premium that is at 1360 or below the eligibility threshold established in s. 1361 627.351(6)(c)5.a. Whenever an offer of coverage for a personal 1362 lines risk is received for a policyholder of the corporation at 1363 renewal from an authorized insurer through the program, if the 1364 offer is at or below the eligibility threshold established in s. 1365 627.351(6)(c)5.a. equal to or less than the corporations 1366 renewal premium for comparable coverage, the risk is not 1367 eligible for coverage with the corporation. In the event an 1368 offer of coverage for a new applicant is received from an 1369 authorized insurer through the program, and the premium offered 1370 exceeds the eligibility threshold contained in s. 1371 627.351(6)(c)5.a., the applicant or insured may elect to accept 1372 such coverage, or may elect to accept or continue coverage with 1373 the corporation. In the event an offer of coverage for a 1374 personal lines risk is received from an authorized insurer at 1375 renewal through the program, and the premium offered is at or 1376 below the eligibility threshold established in s. 1377 627.351(6)(c)5.a. more than the corporations renewal premium 1378 for comparable coverage, the insured is not eligible to may 1379 elect to accept such coverage, or may elect to accept or 1380 continue coverage with the corporation. Section 1381 627.351(6)(c)5.a.(I) does not apply to an offer of coverage from 1382 an authorized insurer obtained through the program. An applicant 1383 for coverage from the corporation who was declared ineligible 1384 for coverage at renewal by the corporation in the previous 36 1385 months due to an offer of coverage pursuant to this subsection 1386 shall be considered a renewal under this section if the 1387 corporation determines that the authorized insurer making the 1388 offer of coverage pursuant to this subsection continues to 1389 insure the applicant and increased the rate on the policy in 1390 excess of the increase allowed for the corporation under s. 1391 627.351(6)(n)5. 1392 (6)Independent insurance agents submitting new 1393 applications for coverage or that are the agent of record on a 1394 renewal policy submitted to the program: 1395 (a)Are granted and must maintain ownership and the 1396 exclusive use of expirations, records, or other written or 1397 electronic information directly related to such applications or 1398 renewals written through the corporation or through an insurer 1399 participating in the program, notwithstanding s. 1400 627.351(6)(c)5.a.(I)(B) and (II)(B). Such ownership is granted 1401 for as long as the insured remains with the agency or until sold 1402 or surrendered in writing by the agent. Contracts with the 1403 corporation or required by the corporation must not amend, 1404 modify, interfere with, or limit such rights of ownership. Such 1405 expirations, records, or other written or electronic information 1406 may be used to review an application, issue a policy, or for any 1407 other purpose necessary for placing such business through the 1408 program. 1409 (b)May not be required to be appointed by any insurer 1410 participating in the program for policies written solely through 1411 the program, notwithstanding the provisions of s. 626.112. 1412 (c)May accept an appointment from any insurer 1413 participating in the program. 1414 (d)May enter into either a standard or limited agency 1415 agreement with the insurer, at the insurers option. 1416 1417 Applicants ineligible for coverage in accordance with subsection 1418 (5) remain ineligible if their independent agent is unwilling or 1419 unable to enter into a standard or limited agency agreement with 1420 an insurer participating in the program. 1421 (7)Exclusive agents submitting new applications for 1422 coverage or that are the agent of record on a renewal policy 1423 submitted to the program: 1424 (a)Must maintain ownership and the exclusive use of 1425 expirations, records, or other written or electronic information 1426 directly related to such applications or renewals written 1427 through the corporation or through an insurer participating in 1428 the program, notwithstanding s. 627.351(6)(c)5.a.(I)(B) and 1429 (II)(B). Contracts with the corporation or required by the 1430 corporation must not amend, modify, interfere with, or limit 1431 such rights of ownership. Such expirations, records, or other 1432 written or electronic information may be used to review an 1433 application, issue a policy, or for any other purpose necessary 1434 for placing such business through the program. 1435 (b)May not be required to be appointed by any insurer 1436 participating in the program for policies written solely through 1437 the program, notwithstanding the provisions of s. 626.112. 1438 (c)Must only facilitate the placement of an offer of 1439 coverage from an insurer whose limited servicing agreement is 1440 approved by that exclusive agents exclusive insurer. 1441 (d)May enter into a limited servicing agreement with the 1442 insurer making an offer of coverage, and only after the 1443 exclusive agents insurer has approved the limited servicing 1444 agreement terms. The exclusive agents insurer must approve a 1445 limited service agreement for the program for any insurer for 1446 which it has approved a service agreement for other purposes. 1447 1448 Applicants ineligible for coverage in accordance with subsection 1449 (5) remain ineligible if their exclusive agent is unwilling or 1450 unable to enter into a standard or limited agency agreement with 1451 an insurer making an offer of coverage to that applicant. 1452 (8)Submission of an application for coverage by the 1453 corporation to the program does not constitute the binding of 1454 coverage by the corporation, and failure of the program to 1455 obtain an offer of coverage by an insurer may not be considered 1456 acceptance of coverage of the risk by the corporation. 1457 (9)The 45-day notice of nonrenewal requirement set forth 1458 in s. 627.4133(2)(b)5. applies when a policy is nonrenewed by 1459 the corporation because the risk has received an offer of 1460 coverage pursuant to this section which renders the risk 1461 ineligible for coverage by the corporation. 1462 (10)The program may not include commercial nonresidential 1463 policies. 1464 (11)Proprietary business information provided to the 1465 corporations clearinghouse by insurers with respect to 1466 identifying and selecting risks for an offer of coverage is 1467 confidential and exempt from s. 119.07(1) and s. 24(a), Art. I 1468 of the State Constitution. 1469 (a)As used in this subsection, the term proprietary 1470 business information means information, regardless of form or 1471 characteristics, which is owned or controlled by an insurer and: 1472 1.Is identified by the insurer as proprietary business 1473 information and is intended to be and is treated by the insurer 1474 as private in that the disclosure of the information would cause 1475 harm to the insurer, an individual, or the companys business 1476 operations and has not been disclosed unless disclosed pursuant 1477 to a statutory requirement, an order of a court or 1478 administrative body, or a private agreement that provides that 1479 the information will not be released to the public; 1480 2.Is not otherwise readily ascertainable or publicly 1481 available by proper means by other persons from another source 1482 in the same configuration as provided to the clearinghouse; and 1483 3.Includes: 1484 a.Trade secrets, as defined in s. 688.002. 1485 b.Information relating to competitive interests, the 1486 disclosure of which would impair the competitive business of the 1487 provider of the information. 1488 1489 Proprietary business information may be found in underwriting 1490 criteria or instructions which are used to identify and select 1491 risks through the program for an offer of coverage and are 1492 shared with the clearinghouse to facilitate the shopping of 1493 risks with the insurer. 1494 (b)The clearinghouse may disclose confidential and exempt 1495 proprietary business information: 1496 1.If the insurer to which it pertains gives prior written 1497 consent; 1498 2.Pursuant to a court order; or 1499 3.To another state agency in this or another state or to a 1500 federal agency if the recipient agrees in writing to maintain 1501 the confidential and exempt status of the document, material, or 1502 other information and has verified in writing its legal 1503 authority to maintain such confidentiality. 1504 Section 4.Paragraphs (f), (g), and (h) are added to 1505 subsection (5) of section 627.7011, Florida Statutes, to read: 1506 627.7011Homeowners policies; offer of replacement cost 1507 coverage and law and ordinance coverage. 1508 (5)This section does not: 1509 (f)1.Prohibit an insurer, notwithstanding paragraph 1510 (1)(a), from providing limited coverage on a personal lines 1511 residential property insurance policy by including a roof 1512 surface type reimbursement schedule. If included in the policy, 1513 a roof surface type reimbursement schedule must do all of the 1514 following: 1515 a.Provide reimbursement for repair, replacement, and 1516 installation based on the annual age of a roof surface type. 1517 b.Provide full replacement coverage for: 1518 (I)Any roof surface type less than 10 years old; 1519 (II)A total loss to a primary structure in accordance with 1520 the valued policy law under s. 627.702 which is caused by a 1521 covered peril; and 1522 (III)A loss to the roof caused by a storm declared to be a 1523 hurricane by the National Hurricane Center. 1524 c.Use annual depreciation amounts that: 1525 (I)Are actuarially justified and meet the requirements of 1526 s. 627.062; and 1527 (II)Do not exceed 4 percent unless actuarially justified. 1528 d.Be approved by the office. 1529 e.Include at the top of the roof surface type schedule, in 1530 bold type no smaller than 12 points, the following statement: 1531 1532 PLEASE DISCUSS WITH YOUR INSURANCE AGENT. YOU ARE 1533 ELECTING TO PURCHASE COVERAGE ON YOUR ROOF ACCORDING 1534 TO A ROOF SURFACE TYPE REIMBURSEMENT SCHEDULE. IF YOUR 1535 ROOF IS DAMAGED BY A COVERED PERIL, YOU WILL RECEIVE A 1536 PAYMENT AMOUNT FOR YOUR ROOF ACCORDING TO THE SCHEDULE 1537 BELOW. BE ADVISED THAT THIS MAY RESULT IN YOU HAVING 1538 TO PAY SIGNIFICANT COSTS TO REPAIR OR REPLACE YOUR 1539 ROOF. PLEASE DISCUSS WITH YOUR INSURANCE AGENT. 1540 1541 f.Be provided to the insured with the policy documents at 1542 issuance and renewal. 1543 2.A residential property insurance policy may convert to a 1544 roof surface type reimbursement schedule at renewal if the roof 1545 is at least 10 years old and the policyholder: 1546 a.Receives a Notice of Change in Policy Terms pursuant to 1547 s. 627.43141; and 1548 b.Accepts the written notice of renewal premium required 1549 under s. 627.4133, by paying the premium. 1550 (g)Prohibit an insurer, notwithstanding paragraph (1)(a), 1551 from providing coverage on a personal lines residential property 1552 insurance policy that limits coverage for a roof to a stated 1553 value sublimit of coverage. If included in a policy, a stated 1554 value sublimit of coverage must do all of the following: 1555 1.Provide full replacement coverage for: 1556 a.Any roof surface type less than 10 years old; 1557 b.A total loss to a primary structure in accordance with 1558 the valued policy law under s. 627.702 which is caused by a 1559 covered peril; and 1560 c.A loss to the roof caused by a storm declared to be a 1561 hurricane by the National Hurricane Center. 1562 2.Include in the policy documents at issuance and at 1563 renewal, in bold type no smaller than 12 points, the following 1564 statement: 1565 1566 PLEASE DISCUSS WITH YOUR INSURANCE AGENT. YOU ARE 1567 ELECTING TO PURCHASE A STATED VALUE SUBLIMIT OF 1568 COVERAGE ON YOUR ROOF. BE ADVISED THAT THIS MAY RESULT 1569 IN YOU HAVING TO PAY SIGNIFICANT COSTS TO REPAIR OR 1570 REPLACE YOUR ROOF. PLEASE DISCUSS WITH YOUR INSURANCE 1571 AGENT. 1572 1573 (h)Prohibit an insurer that provides roof reimbursement on 1574 the basis of a roof surface type reimbursement schedule or that 1575 limits coverage for a roof to a stated value sublimit of 1576 coverage from also offering roof reimbursement on the basis of 1577 replacement costs. 1578 Section 5.For the purpose of incorporating the amendments 1579 made by this act to section 627.351, Florida Statutes, in a 1580 reference thereto, subsection (10) of section 624.424, Florida 1581 Statutes, is reenacted to read: 1582 624.424Annual statement and other information. 1583 (10)Each insurer or insurer group doing business in this 1584 state shall file on a quarterly basis in conjunction with 1585 financial reports required by paragraph (1)(a) a supplemental 1586 report on an individual and group basis on a form prescribed by 1587 the commission with information on personal lines and commercial 1588 lines residential property insurance policies in this state. The 1589 supplemental report shall include separate information for 1590 personal lines property policies and for commercial lines 1591 property policies and totals for each item specified, including 1592 premiums written for each of the property lines of business as 1593 described in ss. 215.555(2)(c) and 627.351(6)(a). The report 1594 shall include the following information for each county on a 1595 monthly basis: 1596 (a)Total number of policies in force at the end of each 1597 month. 1598 (b)Total number of policies canceled. 1599 (c)Total number of policies nonrenewed. 1600 (d)Number of policies canceled due to hurricane risk. 1601 (e)Number of policies nonrenewed due to hurricane risk. 1602 (f)Number of new policies written. 1603 (g)Total dollar value of structure exposure under policies 1604 that include wind coverage. 1605 (h)Number of policies that exclude wind coverage. 1606 Section 6.For the purpose of incorporating the amendments 1607 made by this act to section 627.351, Florida Statutes, in a 1608 reference thereto, section 627.3517, Florida Statutes, is 1609 reenacted to read: 1610 627.3517Consumer choice.No provision of s. 627.351, s. 1611 627.3511, or s. 627.3515 shall be construed to impair the right 1612 of any insurance risk apportionment plan policyholder, upon 1613 receipt of any keepout or take-out offer, to retain his or her 1614 current agent, so long as that agent is duly licensed and 1615 appointed by the insurance risk apportionment plan or otherwise 1616 authorized to place business with the insurance risk 1617 apportionment plan. This right shall not be canceled, suspended, 1618 impeded, abridged, or otherwise compromised by any rule, plan of 1619 operation, or depopulation plan, whether through keepout, take 1620 out, midterm assumption, or any other means, of any insurance 1621 risk apportionment plan or depopulation plan, including, but not 1622 limited to, those described in s. 627.351, s. 627.3511, or s. 1623 627.3515. The commission shall adopt any rules necessary to 1624 cause any insurance risk apportionment plan or market assistance 1625 plan under such sections to demonstrate that the operations of 1626 the plan do not interfere with, promote, or allow interference 1627 with the rights created under this section. If the 1628 policyholders current agent is unable or unwilling to be 1629 appointed with the insurer making the take-out or keepout offer, 1630 the policyholder shall not be disqualified from participation in 1631 the appropriate insurance risk apportionment plan because of an 1632 offer of coverage in the voluntary market. An offer of full 1633 property insurance coverage by the insurer currently insuring 1634 either the ex-wind or wind-only coverage on the policy to which 1635 the offer applies shall not be considered a take-out or keepout 1636 offer. Any rule, plan of operation, or plan of depopulation, 1637 through keepout, take-out, midterm assumption, or any other 1638 means, of any property insurance risk apportionment plan under 1639 s. 627.351(2) or (6) is subject to ss. 627.351(2)(b) and (6)(c) 1640 and 627.3511(4). 1641 Section 7.For the purpose of incorporating the amendments 1642 made by this act to section 627.351, Florida Statutes, in a 1643 reference thereto, subsection (1) of section 627.712, Florida 1644 Statutes, is reenacted to read: 1645 627.712Residential windstorm coverage required; 1646 availability of exclusions for windstorm or contents. 1647 (1)An insurer issuing a residential property insurance 1648 policy must provide windstorm coverage. Except as provided in 1649 paragraph (2)(c), this section does not apply to risks that are 1650 eligible for wind-only coverage from Citizens Property Insurance 1651 Corporation under s. 627.351(6), and risks that are not eligible 1652 for coverage from Citizens Property Insurance Corporation under 1653 s. 627.351(6)(a)3. or 5. A risk ineligible for coverage by the 1654 corporation under s. 627.351(6)(a)3. or 5. is exempt from this 1655 section only if the risk is located within the boundaries of the 1656 coastal account of the corporation. 1657 Section 8.This act shall take effect July 1, 2022.