CS for CS for SB 1728 First Engrossed 20221728e1 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. 627.021, F.S.; 5 revising applicability; amending s. 627.351, F.S.; 6 deleting obsolete provisions related to eligibility 7 thresholds for personal lines residential coverage 8 with the Citizens Property Insurance Corporation; 9 requiring the corporation to use a method for valuing 10 dwelling replacement costs which is approved by the 11 Office of Insurance Regulation; requiring, rather than 12 authorizing, the corporation to use a single account 13 under certain circumstances; specifying qualifications 14 requirements for certain members of the board of 15 governors for the corporation; defining the term 16 demonstrated expertise in insurance; revising 17 conditions for eligibility for coverage with the 18 corporation; providing for a required limited annual 19 rate increase for specified polices; requiring that 20 certain new policies written by the corporation be 21 charged a specified premium until certain conditions 22 are met; defining the terms primary residence and 23 unsound insurer; providing that eligible surplus 24 lines insurers may participate, in the same manner and 25 on the same terms as an authorized insurer, in 26 depopulation, take-out, or keep-out programs relating 27 to policies removed from Citizens Property Insurance 28 Corporation; providing certain exceptions, conditions, 29 and requirements relating to such participation by a 30 surplus lines insurer in the corporations 31 depopulation, take-out, or keep-out programs; 32 providing thresholds for eligibility for coverage by 33 the corporation for risks that are offered coverage 34 from qualified surplus lines insurers; authorizing 35 information from underwriting files and confidential 36 claims files to be released under certain 37 circumstances by the corporation to specified entities 38 that consider writing or underwriting risks insured by 39 the corporation; specifying that only the 40 corporations transfer of a policy file to an insurer, 41 as opposed to the transfer of any file, changes the 42 files public record status; revising the contents of 43 a specified notice provided by the corporation; making 44 technical changes; amending s. 627.3518, F.S.; 45 deleting an obsolete provision related to implementing 46 the clearinghouse program by a specified date; 47 deleting an obsolete reporting requirement; conforming 48 provisions to changes made by the act; amending s. 49 627.701, F.S.; revising a prohibition against the 50 issuance of insurance policies containing certain 51 deductible provisions; requiring personal lines 52 residential property insurance policies containing 53 separate roof deductibles to include specified 54 information; authorizing property insurers to require 55 separate roof deductibles if certain conditions are 56 met; amending s. 627.7011, F.S.; authorizing insurers 57 to limit roof claim payments to the actual cash value 58 under certain circumstances; amending s. 627.70152, 59 F.S.; authorizing the award of reasonable attorney 60 fees and costs to defendants under certain 61 circumstances; reenacting ss. 624.424(10), 627.3517, 62 and 627.712(1), F.S., relating to annual insurer 63 statements, consumer choice, and required residential 64 windstorm coverage, respectively, to incorporate the 65 amendments made to s. 627.351, F.S., in references 66 thereto; providing an effective date. 67 68 Be It Enacted by the Legislature of the State of Florida: 69 70 Section 1.Paragraph (a) of subsection (1) of section 71 489.147, Florida Statutes, is amended to read: 72 489.147Prohibited property insurance practices. 73 (1)As used in this section, the term: 74 (a)Prohibited advertisement means any written or 75 electronic communication by a contractor which that encourages, 76 instructs, or induces a consumer to contact a contractor or 77 public adjuster for the purpose of making an insurance claim for 78 roof damage, if such communication does not state in a font size 79 of at least 12 points and at least half as large as the largest 80 font size used in the communication that: 81 1.The consumer is responsible for payment of any insurance 82 deductible; 83 2.It is insurance fraud punishable as a felony of the 84 third degree for a contractor to pay, waive, or rebate all or 85 part of an insurance deductible applicable to payment to the 86 contractor for repairs to property covered by a property 87 insurance policy; and 88 3.It is insurance fraud punishable as a felony of the 89 third degree to intentionally file an insurance claim containing 90 any false, incomplete, or misleading information. 91 92 The term includes, but is not limited to, door hangers, business 93 cards, magnets, flyers, pamphlets, and e-mails. 94 Section 2.Subsection (2) of section 627.021, Florida 95 Statutes, is amended to read: 96 627.021Scope of this part. 97 (2)This part does not apply to: 98 (a)Reinsurance, except joint reinsurance as provided in s. 99 627.311. 100 (b)Insurance against loss of or damage to aircraft, their 101 hulls, accessories, or equipment, or against liability, other 102 than workers compensation and employers liability, arising out 103 of the ownership, maintenance, or use of aircraft. 104 (c)Insurance of vessels or craft, their cargoes, marine 105 builders risks, marine protection and indemnity, or other risks 106 commonly insured under marine insurance policies. 107 (d)Commercial inland marine insurance. 108 (e)Except as may be specifically stated to apply, surplus 109 lines insurance placed under the provisions of ss. 626.913 110 626.937. 111 Section 3.Paragraphs (a), (b), (c), (n), (q), (x), and 112 (ii) of subsection (6) of section 627.351, Florida Statutes, are 113 amended to read: 114 627.351Insurance risk apportionment plans. 115 (6)CITIZENS PROPERTY INSURANCE CORPORATION. 116 (a)The public purpose of this subsection is to ensure that 117 there is an orderly market for property insurance for residents 118 and businesses of this state. 119 1.The Legislature finds that private insurers are 120 unwilling or unable to provide affordable property insurance 121 coverage in this state to the extent sought and needed. The 122 absence of affordable property insurance threatens the public 123 health, safety, and welfare and likewise threatens the economic 124 health of the state. The state therefore has a compelling public 125 interest and a public purpose to assist in assuring that 126 property in this the state is insured and that it is insured at 127 affordable rates so as to facilitate the remediation, 128 reconstruction, and replacement of damaged or destroyed property 129 in order to reduce or avoid the negative effects otherwise 130 resulting to the public health, safety, and welfare, to the 131 economy of the state, and to the revenues of the state and local 132 governments which are needed to provide for the public welfare. 133 It is necessary, therefore, to provide affordable property 134 insurance to applicants who are in good faith entitled to 135 procure insurance through the voluntary market but are unable to 136 do so. The Legislature intends, therefore, that affordable 137 property insurance be provided and that it continue to be 138 provided, as long as necessary, through Citizens Property 139 Insurance Corporation, a government entity that is an integral 140 part of the state, and that is not a private insurance company. 141 To that end, the corporation shall strive to increase the 142 availability of affordable property insurance in this state, 143 while achieving efficiencies and economies, and while providing 144 service to policyholders, applicants, and agents which is no 145 less than the quality generally provided in the voluntary 146 market, for the achievement of the foregoing public purposes. 147 Because it is essential for this government entity to have the 148 maximum financial resources to pay claims following a 149 catastrophic hurricane, it is the intent of the Legislature that 150 the corporation continue to be an integral part of the state and 151 that the income of the corporation be exempt from federal income 152 taxation and that interest on the debt obligations issued by the 153 corporation be exempt from federal income taxation. 154 2.The Residential Property and Casualty Joint Underwriting 155 Association originally created by this statute shall be known as 156 the Citizens Property Insurance Corporation. The corporation 157 shall provide insurance for residential and commercial property, 158 for applicants who are entitled, but, in good faith, are unable 159 to procure insurance through the voluntary market. The 160 corporation shall operate pursuant to a plan of operation 161 approved by order of the Financial Services Commission. The plan 162 is subject to continuous review by the commission. The 163 commission may, by order, withdraw approval of all or part of a 164 plan if the commission determines that conditions have changed 165 since approval was granted and that the purposes of the plan 166 require changes in the plan. For the purposes of this 167 subsection, residential coverage includes both personal lines 168 residential coverage, which consists of the type of coverage 169 provided by homeowner, mobile home owner, dwelling, tenant, 170 condominium unit owner, and similar policies; and commercial 171 lines residential coverage, which consists of the type of 172 coverage provided by condominium association, apartment 173 building, and similar policies. 174 3.With respect to coverage for personal lines residential 175 structures, and: 176 a.Effective January 1, 2014, a structure that has a 177 dwelling replacement cost of $1 million or more, or a single 178 condominium unit that has a combined dwelling and contents 179 replacement cost of $1 million or more, is not eligible for 180 coverage by the corporation. Such dwellings insured by the 181 corporation on December 31, 2013, may continue to be covered by 182 the corporation until the end of the policy term. The office 183 shall approve the method used by the corporation for valuing the 184 dwelling replacement cost for the purposes of this subparagraph. 185 If a policyholder is insured by the corporation before being 186 determined to be ineligible pursuant to this subparagraph and 187 such policyholder files a lawsuit challenging the determination, 188 the policyholder may remain insured by the corporation until the 189 conclusion of the litigation. 190 b.Effective January 1, 2015, a structure that has a 191 dwelling replacement cost of $900,000 or more, or a single 192 condominium unit that has a combined dwelling and contents 193 replacement cost of $900,000 or more, is not eligible for 194 coverage by the corporation. Such dwellings insured by the 195 corporation on December 31, 2014, may continue to be covered by 196 the corporation only until the end of the policy term. 197 c.Effective January 1, 2016, a structure that has a 198 dwelling replacement cost of $800,000 or more, or a single 199 condominium unit that has a combined dwelling and contents 200 replacement cost of $800,000 or more, is not eligible for 201 coverage by the corporation. Such dwellings insured by the 202 corporation on December 31, 2015, may continue to be covered by 203 the corporation until the end of the policy term. 204 d.effective January 1, 2017, a structure that has a 205 dwelling replacement cost of $700,000 or more, or a single 206 condominium unit that has a combined dwelling and contents 207 replacement cost of $700,000 or more, is not eligible for 208 coverage by the corporation. The corporation must use a method 209 for valuing the dwelling replacement cost which is approved by 210 the office Such dwellings insured by the corporation on December 211 31, 2016, may continue to be covered by the corporation until 212 the end of the policy term. The requirements of sub 213 subparagraphs b.-d. do not apply However, in counties where the 214 office determines there is not a reasonable degree of 215 competition,. In such counties a personal lines residential 216 structure that has a dwelling replacement cost of less than $1 217 million, or a single condominium unit that has a combined 218 dwelling and contents replacement cost of less than $1 million, 219 is eligible for coverage by the corporation. 220 4.It is the intent of the Legislature that policyholders, 221 applicants, and agents of the corporation receive service and 222 treatment of the highest possible level but never less than that 223 generally provided in the voluntary market. It is also intended 224 that the corporation be held to service standards no less than 225 those applied to insurers in the voluntary market by the office 226 with respect to responsiveness, timeliness, customer courtesy, 227 and overall dealings with policyholders, applicants, or agents 228 of the corporation. 229 5.a.Effective January 1, 2009, a personal lines 230 residential structure that is located in the wind-borne debris 231 region, as defined in s. 1609.2, International Building Code 232 (2006), and that has an insured value on the structure of 233 $750,000 or more is not eligible for coverage by the corporation 234 unless the structure has opening protections as required under 235 the Florida Building Code for a newly constructed residential 236 structure in that area. A residential structure is deemed to 237 comply with this sub-subparagraph if it has shutters or opening 238 protections on all openings and if such opening protections 239 complied with the Florida Building Code at the time they were 240 installed. 241 b.Any major structure, as defined in s. 161.54(6)(a), that 242 is newly constructed, or rebuilt, repaired, restored, or 243 remodeled to increase the total square footage of finished area 244 by more than 25 percent, pursuant to a permit applied for after 245 July 1, 2015, is not eligible for coverage by the corporation if 246 the structure is seaward of the coastal construction control 247 line established pursuant to s. 161.053 or is within the Coastal 248 Barrier Resources System as designated by 16 U.S.C. ss. 3501 249 3510. 250 6.With respect to wind-only coverage for commercial lines 251 residential condominiums, effective July 1, 2014, a condominium 252 shall be deemed ineligible for coverage if 50 percent or more of 253 the units are rented more than eight times in a calendar year 254 for a rental agreement period of less than 30 days. 255 (b)1.All insurers authorized to write one or more subject 256 lines of business in this state are subject to assessment by the 257 corporation and, for the purposes of this subsection, are 258 referred to collectively as assessable insurers. Insurers 259 writing one or more subject lines of business in this state 260 pursuant to part VIII of chapter 626 are not assessable 261 insurers; however, insureds who procure one or more subject 262 lines of business in this state pursuant to part VIII of chapter 263 626 are subject to assessment by the corporation and are 264 referred to collectively as assessable insureds. An insurers 265 assessment liability begins on the first day of the calendar 266 year following the year in which the insurer was issued a 267 certificate of authority to transact insurance for subject lines 268 of business in this state and terminates 1 year after the end of 269 the first calendar year during which the insurer no longer holds 270 a certificate of authority to transact insurance for subject 271 lines of business in this state. 272 2.a.All revenues, assets, liabilities, losses, and 273 expenses of the corporation shall be divided into three separate 274 accounts as follows: 275 (I)A personal lines account for personal residential 276 policies issued by the corporation which provides comprehensive, 277 multiperil coverage on risks that are not located in areas 278 eligible for coverage by the Florida Windstorm Underwriting 279 Association as those areas were defined on January 1, 2002, and 280 for policies that do not provide coverage for the peril of wind 281 on risks that are located in such areas; 282 (II)A commercial lines account for commercial residential 283 and commercial nonresidential policies issued by the corporation 284 which provides coverage for basic property perils on risks that 285 are not located in areas eligible for coverage by the Florida 286 Windstorm Underwriting Association as those areas were defined 287 on January 1, 2002, and for policies that do not provide 288 coverage for the peril of wind on risks that are located in such 289 areas; and 290 (III)A coastal account for personal residential policies 291 and commercial residential and commercial nonresidential 292 property policies issued by the corporation which provides 293 coverage for the peril of wind on risks that are located in 294 areas eligible for coverage by the Florida Windstorm 295 Underwriting Association as those areas were defined on January 296 1, 2002. The corporation may offer policies that provide 297 multiperil coverage and shall offer policies that provide 298 coverage only for the peril of wind for risks located in areas 299 eligible for coverage in the coastal account. Effective July 1, 300 2014, the corporation shall cease offering new commercial 301 residential policies providing multiperil coverage and shall 302 instead continue to offer commercial residential wind-only 303 policies, and may offer commercial residential policies 304 excluding wind. The corporation may, however, continue to renew 305 a commercial residential multiperil policy on a building that is 306 insured by the corporation on June 30, 2014, under a multiperil 307 policy. In issuing multiperil coverage, the corporation may use 308 its approved policy forms and rates for the personal lines 309 account. An applicant or insured who is eligible to purchase a 310 multiperil policy from the corporation may purchase a multiperil 311 policy from an authorized insurer without prejudice to the 312 applicants or insureds eligibility to prospectively purchase a 313 policy that provides coverage only for the peril of wind from 314 the corporation. An applicant or insured who is eligible for a 315 corporation policy that provides coverage only for the peril of 316 wind may elect to purchase or retain such policy and also 317 purchase or retain coverage excluding wind from an authorized 318 insurer without prejudice to the applicants or insureds 319 eligibility to prospectively purchase a policy that provides 320 multiperil coverage from the corporation. It is the goal of the 321 Legislature that there be an overall average savings of 10 322 percent or more for a policyholder who currently has a wind-only 323 policy with the corporation, and an ex-wind policy with a 324 voluntary insurer or the corporation, and who obtains a 325 multiperil policy from the corporation. It is the intent of the 326 Legislature that the offer of multiperil coverage in the coastal 327 account be made and implemented in a manner that does not 328 adversely affect the tax-exempt status of the corporation or 329 creditworthiness of or security for currently outstanding 330 financing obligations or credit facilities of the coastal 331 account, the personal lines account, or the commercial lines 332 account. The coastal account must also include quota share 333 primary insurance under subparagraph (c)2. The area eligible for 334 coverage under the coastal account also includes the area within 335 Port Canaveral, which is bordered on the south by the City of 336 Cape Canaveral, bordered on the west by the Banana River, and 337 bordered on the north by Federal Government property. 338 b.The three separate accounts must be maintained as long 339 as financing obligations entered into by the Florida Windstorm 340 Underwriting Association or Residential Property and Casualty 341 Joint Underwriting Association are outstanding, in accordance 342 with the terms of the corresponding financing documents. If the 343 financing obligations are no longer outstanding, the corporation 344 shall may use a single account for all revenues, assets, 345 liabilities, losses, and expenses of the corporation. Consistent 346 with this subparagraph and prudent investment policies that 347 minimize the cost of carrying debt, the board shall exercise its 348 best efforts to retire existing debt or obtain the approval of 349 necessary parties to amend the terms of existing debt, so as to 350 structure the most efficient plan for consolidating the three 351 separate accounts into a single account. 352 c.Creditors of the Residential Property and Casualty Joint 353 Underwriting Association and the accounts specified in sub-sub 354 subparagraphs a.(I) and (II) may have a claim against, and 355 recourse to, those accounts and no claim against, or recourse 356 to, the account referred to in sub-sub-subparagraph a.(III). 357 Creditors of the Florida Windstorm Underwriting Association have 358 a claim against, and recourse to, the account referred to in 359 sub-sub-subparagraph a.(III) and no claim against, or recourse 360 to, the accounts referred to in sub-sub-subparagraphs a.(I) and 361 (II). 362 d.Revenues, assets, liabilities, losses, and expenses not 363 attributable to particular accounts shall be prorated among the 364 accounts. 365 e.The Legislature finds that the revenues of the 366 corporation are revenues that are necessary to meet the 367 requirements set forth in documents authorizing the issuance of 368 bonds under this subsection. 369 f.The income of the corporation may not inure to the 370 benefit of any private person. 371 3.With respect to a deficit in an account: 372 a.After accounting for the Citizens policyholder surcharge 373 imposed under sub-subparagraph i., if the remaining projected 374 deficit incurred in the coastal account in a particular calendar 375 year: 376 (I)Is not greater than 2 percent of the aggregate 377 statewide direct written premium for the subject lines of 378 business for the prior calendar year, the entire deficit shall 379 be recovered through regular assessments of assessable insurers 380 under paragraph (q) and assessable insureds. 381 (II)Exceeds 2 percent of the aggregate statewide direct 382 written premium for the subject lines of business for the prior 383 calendar year, the corporation shall levy regular assessments on 384 assessable insurers under paragraph (q) and on assessable 385 insureds in an amount equal to the greater of 2 percent of the 386 projected deficit or 2 percent of the aggregate statewide direct 387 written premium for the subject lines of business for the prior 388 calendar year. Any remaining projected deficit shall be 389 recovered through emergency assessments under sub-subparagraph 390 d. 391 b.Each assessable insurers share of the amount being 392 assessed under sub-subparagraph a. must be in the proportion 393 that the assessable insurers direct written premium for the 394 subject lines of business for the year preceding the assessment 395 bears to the aggregate statewide direct written premium for the 396 subject lines of business for that year. The assessment 397 percentage applicable to each assessable insured is the ratio of 398 the amount being assessed under sub-subparagraph a. to the 399 aggregate statewide direct written premium for the subject lines 400 of business for the prior year. Assessments levied by the 401 corporation on assessable insurers under sub-subparagraph a. 402 must be paid as required by the corporations plan of operation 403 and paragraph (q). Assessments levied by the corporation on 404 assessable insureds under sub-subparagraph a. shall be collected 405 by the surplus lines agent at the time the surplus lines agent 406 collects the surplus lines tax required by s. 626.932, and paid 407 to the Florida Surplus Lines Service Office at the time the 408 surplus lines agent pays the surplus lines tax to that office. 409 Upon receipt of regular assessments from surplus lines agents, 410 the Florida Surplus Lines Service Office shall transfer the 411 assessments directly to the corporation as determined by the 412 corporation. 413 c.After accounting for the Citizens policyholder surcharge 414 imposed under sub-subparagraph i., the remaining projected 415 deficits in the personal lines account and in the commercial 416 lines account in a particular calendar year shall be recovered 417 through emergency assessments under sub-subparagraph d. 418 d.Upon a determination by the board of governors that a 419 projected deficit in an account exceeds the amount that is 420 expected to be recovered through regular assessments under sub 421 subparagraph a., plus the amount that is expected to be 422 recovered through surcharges under sub-subparagraph i., the 423 board, after verification by the office, shall levy emergency 424 assessments for as many years as necessary to cover the 425 deficits, to be collected by assessable insurers and the 426 corporation and collected from assessable insureds upon issuance 427 or renewal of policies for subject lines of business, excluding 428 National Flood Insurance policies. The amount collected in a 429 particular year must be a uniform percentage of that years 430 direct written premium for subject lines of business and all 431 accounts of the corporation, excluding National Flood Insurance 432 Program policy premiums, as annually determined by the board and 433 verified by the office. The office shall verify the arithmetic 434 calculations involved in the boards determination within 30 435 days after receipt of the information on which the determination 436 was based. The office shall notify assessable insurers and the 437 Florida Surplus Lines Service Office of the date on which 438 assessable insurers shall begin to collect and assessable 439 insureds shall begin to pay such assessment. The date must be at 440 least 90 days after the date the corporation levies emergency 441 assessments pursuant to this sub-subparagraph. Notwithstanding 442 any other provision of law, the corporation and each assessable 443 insurer that writes subject lines of business shall collect 444 emergency assessments from its policyholders without such 445 obligation being affected by any credit, limitation, exemption, 446 or deferment. Emergency assessments levied by the corporation on 447 assessable insureds shall be collected by the surplus lines 448 agent at the time the surplus lines agent collects the surplus 449 lines tax required by s. 626.932 and paid to the Florida Surplus 450 Lines Service Office at the time the surplus lines agent pays 451 the surplus lines tax to that office. The emergency assessments 452 collected shall be transferred directly to the corporation on a 453 periodic basis as determined by the corporation and held by the 454 corporation solely in the applicable account. The aggregate 455 amount of emergency assessments levied for an account in any 456 calendar year may be less than but may not exceed the greater of 457 10 percent of the amount needed to cover the deficit, plus 458 interest, fees, commissions, required reserves, and other costs 459 associated with financing the original deficit, or 10 percent of 460 the aggregate statewide direct written premium for subject lines 461 of business and all accounts of the corporation for the prior 462 year, plus interest, fees, commissions, required reserves, and 463 other costs associated with financing the deficit. 464 e.The corporation may pledge the proceeds of assessments, 465 projected recoveries from the Florida Hurricane Catastrophe 466 Fund, other insurance and reinsurance recoverables, policyholder 467 surcharges and other surcharges, and other funds available to 468 the corporation as the source of revenue for and to secure bonds 469 issued under paragraph (q), bonds or other indebtedness issued 470 under subparagraph (c)3., or lines of credit or other financing 471 mechanisms issued or created under this subsection, or to retire 472 any other debt incurred as a result of deficits or events giving 473 rise to deficits, or in any other way that the board determines 474 will efficiently recover such deficits. The purpose of the lines 475 of credit or other financing mechanisms is to provide additional 476 resources to assist the corporation in covering claims and 477 expenses attributable to a catastrophe. As used in this 478 subsection, the term assessments includes regular assessments 479 under sub-subparagraph a. or subparagraph (q)1. and emergency 480 assessments under sub-subparagraph d. Emergency assessments 481 collected under sub-subparagraph d. are not part of an insurers 482 rates, are not premium, and are not subject to premium tax, 483 fees, or commissions; however, failure to pay the emergency 484 assessment shall be treated as failure to pay premium. The 485 emergency assessments shall continue as long as any bonds issued 486 or other indebtedness incurred with respect to a deficit for 487 which the assessment was imposed remain outstanding, unless 488 adequate provision has been made for the payment of such bonds 489 or other indebtedness pursuant to the documents governing such 490 bonds or indebtedness. 491 f.As used in this subsection for purposes of any deficit 492 incurred on or after January 25, 2007, the term subject lines 493 of business means insurance written by assessable insurers or 494 procured by assessable insureds for all property and casualty 495 lines of business in this state, but not including workers 496 compensation or medical malpractice. As used in this sub 497 subparagraph, the term property and casualty lines of business 498 includes all lines of business identified on Form 2, Exhibit of 499 Premiums and Losses, in the annual statement required of 500 authorized insurers under s. 624.424 and any rule adopted under 501 this section, except for those lines identified as accident and 502 health insurance and except for policies written under the 503 National Flood Insurance Program or the Federal Crop Insurance 504 Program. For purposes of this sub-subparagraph, the term 505 workers compensation includes both workers compensation 506 insurance and excess workers compensation insurance. 507 g.The Florida Surplus Lines Service Office shall determine 508 annually the aggregate statewide written premium in subject 509 lines of business procured by assessable insureds and report 510 that information to the corporation in a form and at a time the 511 corporation specifies to ensure that the corporation can meet 512 the requirements of this subsection and the corporations 513 financing obligations. 514 h.The Florida Surplus Lines Service Office shall verify 515 the proper application by surplus lines agents of assessment 516 percentages for regular assessments and emergency assessments 517 levied under this subparagraph on assessable insureds and assist 518 the corporation in ensuring the accurate, timely collection and 519 payment of assessments by surplus lines agents as required by 520 the corporation. 521 i.Upon determination by the board of governors that an 522 account has a projected deficit, the board shall levy a Citizens 523 policyholder surcharge against all policyholders of the 524 corporation. 525 (I)The surcharge shall be levied as a uniform percentage 526 of the premium for the policy of up to 15 percent of such 527 premium, which funds shall be used to offset the deficit. 528 (II)The surcharge is payable upon cancellation or 529 termination of the policy, upon renewal of the policy, or upon 530 issuance of a new policy by the corporation within the first 12 531 months after the date of the levy or the period of time 532 necessary to fully collect the surcharge amount. 533 (III)The corporation may not levy any regular assessments 534 under paragraph (q) pursuant to sub-subparagraph a. or sub 535 subparagraph b. with respect to a particular years deficit 536 until the corporation has first levied the full amount of the 537 surcharge authorized by this sub-subparagraph. 538 (IV)The surcharge is not considered premium and is not 539 subject to commissions, fees, or premium taxes. However, failure 540 to pay the surcharge shall be treated as failure to pay premium. 541 j.If the amount of any assessments or surcharges collected 542 from corporation policyholders, assessable insurers or their 543 policyholders, or assessable insureds exceeds the amount of the 544 deficits, such excess amounts shall be remitted to and retained 545 by the corporation in a reserve to be used by the corporation, 546 as determined by the board of governors and approved by the 547 office, to pay claims or reduce any past, present, or future 548 plan-year deficits or to reduce outstanding debt. 549 (c)The corporations plan of operation: 550 1.Must provide for adoption of residential property and 551 casualty insurance policy forms and commercial residential and 552 nonresidential property insurance forms, which must be approved 553 by the office before use. The corporation shall adopt the 554 following policy forms: 555 a.Standard personal lines policy forms that are 556 comprehensive multiperil policies providing full coverage of a 557 residential property equivalent to the coverage provided in the 558 private insurance market under an HO-3, HO-4, or HO-6 policy. 559 b.Basic personal lines policy forms that are policies 560 similar to an HO-8 policy or a dwelling fire policy that provide 561 coverage meeting the requirements of the secondary mortgage 562 market, but which is more limited than the coverage under a 563 standard policy. 564 c.Commercial lines residential and nonresidential policy 565 forms that are generally similar to the basic perils of full 566 coverage obtainable for commercial residential structures and 567 commercial nonresidential structures in the admitted voluntary 568 market. 569 d.Personal lines and commercial lines residential property 570 insurance forms that cover the peril of wind only. The forms are 571 applicable only to residential properties located in areas 572 eligible for coverage under the coastal account referred to in 573 sub-subparagraph (b)2.a. 574 e.Commercial lines nonresidential property insurance forms 575 that cover the peril of wind only. The forms are applicable only 576 to nonresidential properties located in areas eligible for 577 coverage under the coastal account referred to in sub 578 subparagraph (b)2.a. 579 f.The corporation may adopt variations of the policy forms 580 listed in sub-subparagraphs a.-e. which contain more restrictive 581 coverage. 582 g.Effective January 1, 2013, the corporation shall offer a 583 basic personal lines policy similar to an HO-8 policy with 584 dwelling repair based on common construction materials and 585 methods. 586 2.Must provide that the corporation adopt a program in 587 which the corporation and authorized insurers enter into quota 588 share primary insurance agreements for hurricane coverage, as 589 defined in s. 627.4025(2)(a), for eligible risks, and adopt 590 property insurance forms for eligible risks which cover the 591 peril of wind only. 592 a.As used in this subsection, the term: 593 (I)Quota share primary insurance means an arrangement in 594 which the primary hurricane coverage of an eligible risk is 595 provided in specified percentages by the corporation and an 596 authorized insurer. The corporation and authorized insurer are 597 each solely responsible for a specified percentage of hurricane 598 coverage of an eligible risk as set forth in a quota share 599 primary insurance agreement between the corporation and an 600 authorized insurer and the insurance contract. The 601 responsibility of the corporation or authorized insurer to pay 602 its specified percentage of hurricane losses of an eligible 603 risk, as set forth in the agreement, may not be altered by the 604 inability of the other party to pay its specified percentage of 605 losses. Eligible risks that are provided hurricane coverage 606 through a quota share primary insurance arrangement must be 607 provided policy forms that set forth the obligations of the 608 corporation and authorized insurer under the arrangement, 609 clearly specify the percentages of quota share primary insurance 610 provided by the corporation and authorized insurer, and 611 conspicuously and clearly state that the authorized insurer and 612 the corporation may not be held responsible beyond their 613 specified percentage of coverage of hurricane losses. 614 (II)Eligible risks means personal lines residential and 615 commercial lines residential risks that meet the underwriting 616 criteria of the corporation and are located in areas that were 617 eligible for coverage by the Florida Windstorm Underwriting 618 Association on January 1, 2002. 619 b.The corporation may enter into quota share primary 620 insurance agreements with authorized insurers at corporation 621 coverage levels of 90 percent and 50 percent. 622 c.If the corporation determines that additional coverage 623 levels are necessary to maximize participation in quota share 624 primary insurance agreements by authorized insurers, the 625 corporation may establish additional coverage levels. However, 626 the corporations quota share primary insurance coverage level 627 may not exceed 90 percent. 628 d.Any quota share primary insurance agreement entered into 629 between an authorized insurer and the corporation must provide 630 for a uniform specified percentage of coverage of hurricane 631 losses, by county or territory as set forth by the corporation 632 board, for all eligible risks of the authorized insurer covered 633 under the agreement. 634 e.Any quota share primary insurance agreement entered into 635 between an authorized insurer and the corporation is subject to 636 review and approval by the office. However, such agreement shall 637 be authorized only as to insurance contracts entered into 638 between an authorized insurer and an insured who is already 639 insured by the corporation for wind coverage. 640 f.For all eligible risks covered under quota share primary 641 insurance agreements, the exposure and coverage levels for both 642 the corporation and authorized insurers shall be reported by the 643 corporation to the Florida Hurricane Catastrophe Fund. For all 644 policies of eligible risks covered under such agreements, the 645 corporation and the authorized insurer must maintain complete 646 and accurate records for the purpose of exposure and loss 647 reimbursement audits as required by fund rules. The corporation 648 and the authorized insurer shall each maintain duplicate copies 649 of policy declaration pages and supporting claims documents. 650 g.The corporation board shall establish in its plan of 651 operation standards for quota share agreements which ensure that 652 there is no discriminatory application among insurers as to the 653 terms of the agreements, pricing of the agreements, incentive 654 provisions if any, and consideration paid for servicing policies 655 or adjusting claims. 656 h.The quota share primary insurance agreement between the 657 corporation and an authorized insurer must set forth the 658 specific terms under which coverage is provided, including, but 659 not limited to, the sale and servicing of policies issued under 660 the agreement by the insurance agent of the authorized insurer 661 producing the business, the reporting of information concerning 662 eligible risks, the payment of premium to the corporation, and 663 arrangements for the adjustment and payment of hurricane claims 664 incurred on eligible risks by the claims adjuster and personnel 665 of the authorized insurer. Entering into a quota sharing 666 insurance agreement between the corporation and an authorized 667 insurer is voluntary and at the discretion of the authorized 668 insurer. 669 3.May provide that the corporation may employ or otherwise 670 contract with individuals or other entities to provide 671 administrative or professional services that may be appropriate 672 to effectuate the plan. The corporation may borrow funds by 673 issuing bonds or by incurring other indebtedness, and shall have 674 other powers reasonably necessary to effectuate the requirements 675 of this subsection, including, without limitation, the power to 676 issue bonds and incur other indebtedness in order to refinance 677 outstanding bonds or other indebtedness. The corporation may 678 seek judicial validation of its bonds or other indebtedness 679 under chapter 75. The corporation may issue bonds or incur other 680 indebtedness, or have bonds issued on its behalf by a unit of 681 local government pursuant to subparagraph (q)2. in the absence 682 of a hurricane or other weather-related event, upon a 683 determination by the corporation, subject to approval by the 684 office, that such action would enable it to efficiently meet the 685 financial obligations of the corporation and that such 686 financings are reasonably necessary to effectuate the 687 requirements of this subsection. The corporation may take all 688 actions needed to facilitate tax-free status for such bonds or 689 indebtedness, including formation of trusts or other affiliated 690 entities. The corporation may pledge assessments, projected 691 recoveries from the Florida Hurricane Catastrophe Fund, other 692 reinsurance recoverables, policyholder surcharges and other 693 surcharges, and other funds available to the corporation as 694 security for bonds or other indebtedness. In recognition of s. 695 10, Art. I of the State Constitution, prohibiting the impairment 696 of obligations of contracts, it is the intent of the Legislature 697 that no action be taken whose purpose is to impair any bond 698 indenture or financing agreement or any revenue source committed 699 by contract to such bond or other indebtedness. 700 4.Must require that the corporation operate subject to the 701 supervision and approval of a board of governors consisting of 702 nine individuals who are residents of this state and who are 703 from different geographical areas of the state, one of whom is 704 appointed by the Governor and serves solely to advocate on 705 behalf of the consumer. The appointment of a consumer 706 representative by the Governor is deemed to be within the scope 707 of the exemption provided in s. 112.313(7)(b) and is in addition 708 to the appointments authorized under sub-subparagraph a. 709 a.The Governor, the Chief Financial Officer, the President 710 of the Senate, and the Speaker of the House of Representatives 711 shall each appoint two members of the board. At least one of the 712 two members appointed by each appointing officer must have 713 demonstrated expertise in insurance and be deemed to be within 714 the scope of the exemption provided in s. 112.313(7)(b) at the 715 time of appointment or reappointment. The Chief Financial 716 Officer shall designate one of the appointees as chair. On or 717 after July 1, 2022, an appointee designated as chair must have 718 demonstrated expertise in insurance or must have at least 1 year 719 of experience serving on the board of governors. All board 720 members serve at the pleasure of the appointing officer. All 721 members of the board are subject to removal at will by the 722 officers who appointed them. All board members, including the 723 chair, must be appointed to serve for 3-year terms beginning 724 annually on a date designated by the plan. However, for the 725 first term beginning on or after July 1, 2009, each appointing 726 officer shall appoint one member of the board for a 2-year term 727 and one member for a 3-year term. A board vacancy shall be 728 filled for the unexpired term by the appointing officer. The 729 Chief Financial Officer shall appoint a technical advisory group 730 to provide information and advice to the board in connection 731 with the boards duties under this subsection. The executive 732 director and senior managers of the corporation shall be engaged 733 by the board and serve at the pleasure of the board. The 734 executive director must, at the time of the appointment, have 735 the experience, character, and qualifications required under s. 736 624.404(3) to serve as the chief executive officer of an 737 insurer. Any executive director appointed on or after July 1, 738 2006, is subject to confirmation by the Senate. The executive 739 director is responsible for employing other staff as the 740 corporation may require, subject to review and concurrence by 741 the board. As used in this sub-subparagraph, the term 742 demonstrated expertise in insurance means at least 10 years 743 experience: 744 (I)In property and casualty insurance as a full-time 745 employee, officer, or owner of a licensed insurance agency or an 746 insurer authorized to transact property insurance in this state; 747 or 748 (II)As an insurance regulator or as an executive or 749 officer of an insurance trade association. 750 b.The board shall create a Market Accountability Advisory 751 Committee to assist the corporation in developing awareness of 752 its rates and its customer and agent service levels in 753 relationship to the voluntary market insurers writing similar 754 coverage. 755 (I)The members of the advisory committee consist of the 756 following 11 persons, one of whom must be elected chair by the 757 members of the committee: four representatives, one appointed by 758 the Florida Association of Insurance Agents, one by the Florida 759 Association of Insurance and Financial Advisors, one by the 760 Professional Insurance Agents of Florida, and one by the Latin 761 American Association of Insurance Agencies; three 762 representatives appointed by the insurers with the three highest 763 voluntary market share of residential property insurance 764 business in the state; one representative from the Office of 765 Insurance Regulation; one consumer appointed by the board who is 766 insured by the corporation at the time of appointment to the 767 committee; one representative appointed by the Florida 768 Association of Realtors; and one representative appointed by the 769 Florida Bankers Association. All members shall be appointed to 770 3-year terms and may serve for consecutive terms. 771 (II)The committee shall report to the corporation at each 772 board meeting on insurance market issues which may include rates 773 and rate competition with the voluntary market; service, 774 including policy issuance, claims processing, and general 775 responsiveness to policyholders, applicants, and agents; and 776 matters relating to depopulation. 777 5.Must provide a procedure for determining the eligibility 778 of a risk for coverage, as follows: 779 a.Subject to s. 627.3517, with respect to personal lines 780 residential risks, if the risk is offered coverage from an 781 authorized insurer at the insurers approved rate under a 782 standard policy including wind coverage or, if consistent with 783 the insurers underwriting rules as filed with the office, a 784 basic policy including wind coverage, for a new application to 785 the corporation for coverage, the risk is not eligible for any 786 policy issued by the corporation unless the premium for coverage 787 from the authorized insurer is more than 20 percent greater than 788 the premium for comparable coverage from the corporation. 789 Whenever an offer of coverage for a personal lines residential 790 risk is received for a policyholder of the corporation at 791 renewal from an authorized insurer, if the offer is equal to or 792 less than the corporations renewal premium for comparable 793 coverage, the risk is not eligible for coverage with the 794 corporation unless the premium for coverage from the authorized 795 insurer is more than 20 percent greater than the renewal premium 796 for comparable coverage from the corporation. If the risk is not 797 able to obtain such offer, the risk is eligible for a standard 798 policy including wind coverage or a basic policy including wind 799 coverage issued by the corporation; however, if the risk could 800 not be insured under a standard policy including wind coverage 801 regardless of market conditions, the risk is eligible for a 802 basic policy including wind coverage unless rejected under 803 subparagraph 8. However, a policyholder removed from the 804 corporation through an assumption agreement remains eligible for 805 coverage from the corporation until the end of the assumption 806 period. The corporation shall determine the type of policy to be 807 provided on the basis of objective standards specified in the 808 underwriting manual and based on generally accepted underwriting 809 practices. 810 (I)If the risk accepts an offer of coverage through the 811 market assistance plan or through a mechanism established by the 812 corporation other than a plan established by s. 627.3518, before 813 a policy is issued to the risk by the corporation or during the 814 first 30 days of coverage by the corporation, and the producing 815 agent who submitted the application to the plan or to the 816 corporation is not currently appointed by the insurer, the 817 insurer shall: 818 (A)Pay to the producing agent of record of the policy for 819 the first year, an amount that is the greater of the insurers 820 usual and customary commission for the type of policy written or 821 a fee equal to the usual and customary commission of the 822 corporation; or 823 (B)Offer to allow the producing agent of record of the 824 policy to continue servicing the policy for at least 1 year and 825 offer to pay the agent the greater of the insurers or the 826 corporations usual and customary commission for the type of 827 policy written. 828 829 If the producing agent is unwilling or unable to accept 830 appointment, the new insurer shall pay the agent in accordance 831 with sub-sub-sub-subparagraph (A). 832 (II)If the corporation enters into a contractual agreement 833 for a take-out plan, the producing agent of record of the 834 corporation policy is entitled to retain any unearned commission 835 on the policy, and the insurer shall: 836 (A)Pay to the producing agent of record, for the first 837 year, an amount that is the greater of the insurers usual and 838 customary commission for the type of policy written or a fee 839 equal to the usual and customary commission of the corporation; 840 or 841 (B)Offer to allow the producing agent of record to 842 continue servicing the policy for at least 1 year and offer to 843 pay the agent the greater of the insurers or the corporations 844 usual and customary commission for the type of policy written. 845 846 If the producing agent is unwilling or unable to accept 847 appointment, the new insurer shall pay the agent in accordance 848 with sub-sub-sub-subparagraph (A). 849 b.With respect to commercial lines residential risks, for 850 a new application to the corporation for coverage, if the risk 851 is offered coverage under a policy including wind coverage from 852 an authorized insurer at its approved rate, the risk is not 853 eligible for a policy issued by the corporation unless the 854 premium for coverage from the authorized insurer is more than 20 855 15 percent greater than the premium for comparable coverage from 856 the corporation. Whenever an offer of coverage for a commercial 857 lines residential risk is received for a policyholder of the 858 corporation at renewal from an authorized insurer, if the offer 859 is equal to or less than the corporations renewal premium for 860 comparable coverage, the risk is not eligible for coverage with 861 the corporation unless the premium for coverage from the 862 authorized insurer is more than 20 percent greater than the 863 renewal premium for comparable coverage from the corporation. If 864 the risk is not able to obtain any such offer, the risk is 865 eligible for a policy including wind coverage issued by the 866 corporation. However, a policyholder removed from the 867 corporation through an assumption agreement remains eligible for 868 coverage from the corporation until the end of the assumption 869 period. 870 (I)If the risk accepts an offer of coverage through the 871 market assistance plan or through a mechanism established by the 872 corporation other than a plan established by s. 627.3518, before 873 a policy is issued to the risk by the corporation or during the 874 first 30 days of coverage by the corporation, and the producing 875 agent who submitted the application to the plan or the 876 corporation is not currently appointed by the insurer, the 877 insurer shall: 878 (A)Pay to the producing agent of record of the policy, for 879 the first year, an amount that is the greater of the insurers 880 usual and customary commission for the type of policy written or 881 a fee equal to the usual and customary commission of the 882 corporation; or 883 (B)Offer to allow the producing agent of record of the 884 policy to continue servicing the policy for at least 1 year and 885 offer to pay the agent the greater of the insurers or the 886 corporations usual and customary commission for the type of 887 policy written. 888 889 If the producing agent is unwilling or unable to accept 890 appointment, the new insurer shall pay the agent in accordance 891 with sub-sub-sub-subparagraph (A). 892 (II)If the corporation enters into a contractual agreement 893 for a take-out plan, the producing agent of record of the 894 corporation policy is entitled to retain any unearned commission 895 on the policy, and the insurer shall: 896 (A)Pay to the producing agent of record, for the first 897 year, an amount that is the greater of the insurers usual and 898 customary commission for the type of policy written or a fee 899 equal to the usual and customary commission of the corporation; 900 or 901 (B)Offer to allow the producing agent of record to 902 continue servicing the policy for at least 1 year and offer to 903 pay the agent the greater of the insurers or the corporations 904 usual and customary commission for the type of policy written. 905 906 If the producing agent is unwilling or unable to accept 907 appointment, the new insurer shall pay the agent in accordance 908 with sub-sub-sub-subparagraph (A). 909 c.For purposes of determining comparable coverage under 910 sub-subparagraphs a. and b., the comparison must be based on 911 those forms and coverages that are reasonably comparable. The 912 corporation may rely on a determination of comparable coverage 913 and premium made by the producing agent who submits the 914 application to the corporation, made in the agents capacity as 915 the corporations agent. A comparison may be made solely of the 916 premium with respect to the main building or structure only on 917 the following basis: the same coverage A or other building 918 limits; the same percentage hurricane deductible that applies on 919 an annual basis or that applies to each hurricane for commercial 920 residential property; the same percentage of ordinance and law 921 coverage, if the same limit is offered by both the corporation 922 and the authorized insurer; the same mitigation credits, to the 923 extent the same types of credits are offered both by the 924 corporation and the authorized insurer; the same method for loss 925 payment, such as replacement cost or actual cash value, if the 926 same method is offered both by the corporation and the 927 authorized insurer in accordance with underwriting rules; and 928 any other form or coverage that is reasonably comparable as 929 determined by the board. If an application is submitted to the 930 corporation for wind-only coverage in the coastal account, the 931 premium for the corporations wind-only policy plus the premium 932 for the ex-wind policy that is offered by an authorized insurer 933 to the applicant must be compared to the premium for multiperil 934 coverage offered by an authorized insurer, subject to the 935 standards for comparison specified in this subparagraph. If the 936 corporation or the applicant requests from the authorized 937 insurer a breakdown of the premium of the offer by types of 938 coverage so that a comparison may be made by the corporation or 939 its agent and the authorized insurer refuses or is unable to 940 provide such information, the corporation may treat the offer as 941 not being an offer of coverage from an authorized insurer at the 942 insurers approved rate. 943 6.Must include rules for classifications of risks and 944 rates. 945 7.Must provide that if premium and investment income for 946 an account attributable to a particular calendar year are in 947 excess of projected losses and expenses for the account 948 attributable to that year, such excess shall be held in surplus 949 in the account. Such surplus must be available to defray 950 deficits in that account as to future years and used for that 951 purpose before assessing assessable insurers and assessable 952 insureds as to any calendar year. 953 8.Must provide objective criteria and procedures to be 954 uniformly applied to all applicants in determining whether an 955 individual risk is so hazardous as to be uninsurable. In making 956 this determination and in establishing the criteria and 957 procedures, the following must be considered: 958 a.Whether the likelihood of a loss for the individual risk 959 is substantially higher than for other risks of the same class; 960 and 961 b.Whether the uncertainty associated with the individual 962 risk is such that an appropriate premium cannot be determined. 963 964 The acceptance or rejection of a risk by the corporation shall 965 be construed as the private placement of insurance, and the 966 provisions of chapter 120 do not apply. 967 9.Must provide that the corporation make its best efforts 968 to procure catastrophe reinsurance at reasonable rates, to cover 969 its projected 100-year probable maximum loss as determined by 970 the board of governors. If catastrophe reinsurance is not 971 available at reasonable rates, the corporation need not purchase 972 it, but the corporation shall include the costs of reinsurance 973 to cover its projected 100-year probable maximum loss in its 974 rate calculations even if it does not purchase catastrophe 975 reinsurance. 976 10.The policies issued by the corporation must provide 977 that if the corporation or the market assistance plan obtains an 978 offer from an authorized insurer to cover the risk at its 979 approved rates, the risk is no longer eligible for renewal 980 through the corporation, except as otherwise provided in this 981 subsection. 982 11.Corporation policies and applications must include a 983 notice that the corporation policy could, under this section, be 984 replaced with a policy issued by an authorized insurer which 985 does not provide coverage identical to the coverage provided by 986 the corporation. The notice must also specify that acceptance of 987 corporation coverage creates a conclusive presumption that the 988 applicant or policyholder is aware of this potential. 989 12.May establish, subject to approval by the office, 990 different eligibility requirements and operational procedures 991 for any line or type of coverage for any specified county or 992 area if the board determines that such changes are justified due 993 to the voluntary market being sufficiently stable and 994 competitive in such area or for such line or type of coverage 995 and that consumers who, in good faith, are unable to obtain 996 insurance through the voluntary market through ordinary methods 997 continue to have access to coverage from the corporation. If 998 coverage is sought in connection with a real property transfer, 999 the requirements and procedures may not provide an effective 1000 date of coverage later than the date of the closing of the 1001 transfer as established by the transferor, the transferee, and, 1002 if applicable, the lender. 1003 13.Must provide that, with respect to the coastal account, 1004 any assessable insurer with a surplus as to policyholders of $25 1005 million or less writing 25 percent or more of its total 1006 countrywide property insurance premiums in this state may 1007 petition the office, within the first 90 days of each calendar 1008 year, to qualify as a limited apportionment company. A regular 1009 assessment levied by the corporation on a limited apportionment 1010 company for a deficit incurred by the corporation for the 1011 coastal account may be paid to the corporation on a monthly 1012 basis as the assessments are collected by the limited 1013 apportionment company from its insureds, but a limited 1014 apportionment company must begin collecting the regular 1015 assessments not later than 90 days after the regular assessments 1016 are levied by the corporation, and the regular assessments must 1017 be paid in full within 15 months after being levied by the 1018 corporation. A limited apportionment company shall collect from 1019 its policyholders any emergency assessment imposed under sub 1020 subparagraph (b)3.d. The plan must provide that, if the office 1021 determines that any regular assessment will result in an 1022 impairment of the surplus of a limited apportionment company, 1023 the office may direct that all or part of such assessment be 1024 deferred as provided in subparagraph (q)4. However, an emergency 1025 assessment to be collected from policyholders under sub 1026 subparagraph (b)3.d. may not be limited or deferred. 1027 14.Must provide that the corporation appoint as its 1028 licensed agents only those agents who throughout such 1029 appointments also hold an appointment as defined in s. 626.015 1030 by an insurer who is authorized to write and is actually writing 1031 or renewing personal lines residential property coverage, 1032 commercial residential property coverage, or commercial 1033 nonresidential property coverage within the state. 1034 15.Must provide a premium payment plan option to its 1035 policyholders which, at a minimum, allows for quarterly and 1036 semiannual payment of premiums. A monthly payment plan may, but 1037 is not required to, be offered. 1038 16.Must limit coverage on mobile homes or manufactured 1039 homes built before 1994 to actual cash value of the dwelling 1040 rather than replacement costs of the dwelling. 1041 17.Must provide coverage for manufactured or mobile home 1042 dwellings. Such coverage must also include the following 1043 attached structures: 1044 a.Screened enclosures that are aluminum framed or screened 1045 enclosures that are not covered by the same or substantially the 1046 same materials as those of the primary dwelling; 1047 b.Carports that are aluminum or carports that are not 1048 covered by the same or substantially the same materials as those 1049 of the primary dwelling; and 1050 c.Patios that have a roof covering that is constructed of 1051 materials that are not the same or substantially the same 1052 materials as those of the primary dwelling. 1053 1054 The corporation shall make available a policy for mobile homes 1055 or manufactured homes for a minimum insured value of at least 1056 $3,000. 1057 18.May provide such limits of coverage as the board 1058 determines, consistent with the requirements of this subsection. 1059 19.May require commercial property to meet specified 1060 hurricane mitigation construction features as a condition of 1061 eligibility for coverage. 1062 20.Must provide that new or renewal policies issued by the 1063 corporation on or after January 1, 2012, which cover sinkhole 1064 loss do not include coverage for any loss to appurtenant 1065 structures, driveways, sidewalks, decks, or patios that are 1066 directly or indirectly caused by sinkhole activity. The 1067 corporation shall exclude such coverage using a notice of 1068 coverage change, which may be included with the policy renewal, 1069 and not by issuance of a notice of nonrenewal of the excluded 1070 coverage upon renewal of the current policy. 1071 21.As of January 1, 2012, must require that the agent 1072 obtain from an applicant for coverage from the corporation an 1073 acknowledgment signed by the applicant, which includes, at a 1074 minimum, the following statement: 1075 1076 ACKNOWLEDGMENT OF POTENTIAL SURCHARGE 1077 AND ASSESSMENT LIABILITY: 1078 1079 1.AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE 1080 CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A 1081 DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON, 1082 MY POLICY COULD BE SUBJECT TO SURCHARGES, WHICH WILL BE DUE AND 1083 PAYABLE UPON RENEWAL, CANCELLATION, OR TERMINATION OF THE 1084 POLICY, AND THAT THE SURCHARGES COULD BE AS HIGH AS 45 PERCENT 1085 OF MY PREMIUM, OR A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA 1086 LEGISLATURE. 1087 2.I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER 1088 SURCHARGE, WHICH COULD BE AS HIGH AS 45 PERCENT OF MY PREMIUM, 1089 BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND THAT TO 1090 BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN 1091 PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR RENEWING COVERAGE 1092 WITH CITIZENS. I UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES 1093 ARE REGULATED AND APPROVED BY THE STATE. 1094 3.I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY 1095 ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER 1096 INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE 1097 FLORIDA LEGISLATURE. 1098 4.I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE 1099 CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE 1100 STATE OF FLORIDA. 1101 1102 a.The corporation shall maintain, in electronic format or 1103 otherwise, a copy of the applicants signed acknowledgment and 1104 provide a copy of the statement to the policyholder as part of 1105 the first renewal after the effective date of this subparagraph. 1106 b.The signed acknowledgment form creates a conclusive 1107 presumption that the policyholder understood and accepted his or 1108 her potential surcharge and assessment liability as a 1109 policyholder of the corporation. 1110 (n)1.Rates for coverage provided by the corporation must 1111 be actuarially sound and subject to s. 627.062, except as 1112 otherwise provided in this paragraph. The corporation shall file 1113 its recommended rates with the office at least annually. The 1114 corporation shall provide any additional information regarding 1115 the rates which the office requires. The office shall consider 1116 the recommendations of the board and issue a final order 1117 establishing the rates for the corporation within 45 days after 1118 the recommended rates are filed. The corporation may not pursue 1119 an administrative challenge or judicial review of the final 1120 order of the office. 1121 2.In addition to the rates otherwise determined pursuant 1122 to this paragraph, the corporation shall impose and collect an 1123 amount equal to the premium tax provided in s. 624.509 to 1124 augment the financial resources of the corporation. 1125 3.After the public hurricane loss-projection model under 1126 s. 627.06281 has been found to be accurate and reliable by the 1127 Florida Commission on Hurricane Loss Projection Methodology, the 1128 model shall be considered when establishing the windstorm 1129 portion of the corporations rates. The corporation may use the 1130 public model results in combination with the results of private 1131 models to calculate rates for the windstorm portion of the 1132 corporations rates. This subparagraph does not require or allow 1133 the corporation to adopt rates lower than the rates otherwise 1134 required or allowed by this paragraph. 1135 4.The corporation must make a recommended actuarially 1136 sound rate filing for each personal and commercial line of 1137 business it writes. 1138 5.Notwithstanding the boards recommended rates and the 1139 offices final order regarding the corporations filed rates 1140 under subparagraph 1., the corporation shall annually implement 1141 a rate increase which, except for sinkhole coverage, does not 1142 exceed the following for any single personal lines residential 1143 policy issued by the corporation that covers an insureds 1144 primary residence, and any single commercial lines residential 1145 policy issued by the corporation, excluding coverage changes and 1146 surcharges: 1147 a.Eleven percent for 2022. 1148 b.Twelve percent for 2023. 1149 c.Thirteen percent for 2024. 1150 d.Fourteen percent for 2025. 1151 e.Fifteen percent for 2026 and all subsequent years. 1152 6.The corporation may also implement an increase to 1153 reflect the effect on the corporation of the cash buildup factor 1154 pursuant to s. 215.555(5)(b). 1155 7.The corporations implementation of rates as prescribed 1156 in subparagraph 5. shall cease for any line of business written 1157 by the corporation upon the corporations implementation of 1158 actuarially sound rates. Thereafter, the corporation shall 1159 annually make a recommended actuarially sound rate filing for 1160 each commercial and personal line of business the corporation 1161 writes. 1162 8.Any new personal lines residential policy written by the 1163 corporation with an effective date on or after January 1, 2023, 1164 which covers a risk for which the immediately preceding policy 1165 covering such risk was written by an unsound insurer shall be 1166 charged a premium for coverage that is the higher of the last 1167 premium amount charged by the unsound insurer or the premium 1168 charged by the corporation applicable to the policy. Premiums 1169 established by the unsound insurer shall remain unchanged, 1170 except for adjustments for coverage changes at renewal, until 1171 such time as the corporations premium for that policy exceeds 1172 this amount and thus the policy becomes subject to the 1173 corporations annually approved rate. 1174 9.As used in this paragraph, the term: 1175 a.Primary residence means the dwelling that the insured 1176 has represented as their permanent home on the insurance 1177 application or otherwise to the corporation. 1178 b.Unsound insurer means an insurer determined by the 1179 Office of Insurance Regulation to be in unsound condition as 1180 defined in s. 624.80(2) or an insurer placed in receivership 1181 under chapter 631. 1182 (q)1.The corporation shall certify to the office its needs 1183 for annual assessments as to a particular calendar year, and for 1184 any interim assessments that it deems to be necessary to sustain 1185 operations as to a particular year pending the receipt of annual 1186 assessments. Upon verification, the office shall approve such 1187 certification, and the corporation shall levy such annual or 1188 interim assessments. Such assessments shall be prorated as 1189 provided in paragraph (b). The corporation shall take all 1190 reasonable and prudent steps necessary to collect the amount of 1191 assessments due from each assessable insurer, including, if 1192 prudent, filing suit to collect the assessments, and the office 1193 may provide such assistance to the corporation it deems 1194 appropriate. If the corporation is unable to collect an 1195 assessment from any assessable insurer, the uncollected 1196 assessments shall be levied as an additional assessment against 1197 the assessable insurers and any assessable insurer required to 1198 pay an additional assessment as a result of such failure to pay 1199 shall have a cause of action against such nonpaying assessable 1200 insurer. Assessments shall be included as an appropriate factor 1201 in the making of rates. The failure of a surplus lines agent to 1202 collect and remit any regular or emergency assessment levied by 1203 the corporation is considered to be a violation of s. 626.936 1204 and subjects the surplus lines agent to the penalties provided 1205 in that section. 1206 2.The governing body of any unit of local government, any 1207 residents of which are insured by the corporation, may issue 1208 bonds as defined in s. 125.013 or s. 166.101 from time to time 1209 to fund an assistance program, in conjunction with the 1210 corporation, for the purpose of defraying deficits of the 1211 corporation. In order to avoid needless and indiscriminate 1212 proliferation, duplication, and fragmentation of such assistance 1213 programs, any unit of local government, any residents of which 1214 are insured by the corporation, may provide for the payment of 1215 losses, regardless of whether or not the losses occurred within 1216 or outside of the territorial jurisdiction of the local 1217 government. Revenue bonds under this subparagraph may not be 1218 issued until validated pursuant to chapter 75, unless a state of 1219 emergency is declared by executive order or proclamation of the 1220 Governor pursuant to s. 252.36 making such findings as are 1221 necessary to determine that it is in the best interests of, and 1222 necessary for, the protection of the public health, safety, and 1223 general welfare of residents of this state and declaring it an 1224 essential public purpose to permit certain municipalities or 1225 counties to issue such bonds as will permit relief to claimants 1226 and policyholders of the corporation. Any such unit of local 1227 government may enter into such contracts with the corporation 1228 and with any other entity created pursuant to this subsection as 1229 are necessary to carry out this paragraph. Any bonds issued 1230 under this subparagraph shall be payable from and secured by 1231 moneys received by the corporation from emergency assessments 1232 under sub-subparagraph (b)3.d., and assigned and pledged to or 1233 on behalf of the unit of local government for the benefit of the 1234 holders of such bonds. The funds, credit, property, and taxing 1235 power of the state or of the unit of local government may shall 1236 not be pledged for the payment of such bonds. 1237 3.a.The corporation shall adopt one or more programs 1238 subject to approval by the office for the reduction of both new 1239 and renewal writings in the corporation. Beginning January 1, 1240 2008, any program the corporation adopts for the payment of 1241 bonuses to an insurer for each risk the insurer removes from the 1242 corporation shall comply with s. 627.3511(2) and may not exceed 1243 the amount referenced in s. 627.3511(2) for each risk removed. 1244 The corporation may consider any prudent and not unfairly 1245 discriminatory approach to reducing corporation writings, and 1246 may adopt a credit against assessment liability or other 1247 liability that provides an incentive for insurers to take risks 1248 out of the corporation and to keep risks out of the corporation 1249 by maintaining or increasing voluntary writings in counties or 1250 areas in which corporation risks are highly concentrated and a 1251 program to provide a formula under which an insurer voluntarily 1252 taking risks out of the corporation by maintaining or increasing 1253 voluntary writings will be relieved wholly or partially from 1254 assessments under sub-subparagraph (b)3.a. However, any take 1255 out bonus or payment to an insurer must be conditioned on the 1256 property being insured for at least 5 years by the insurer, 1257 unless canceled or nonrenewed by the policyholder. If the policy 1258 is canceled or nonrenewed by the policyholder before the end of 1259 the 5-year period, the amount of the take-out bonus must be 1260 prorated for the time period the policy was insured. When the 1261 corporation enters into a contractual agreement for a take-out 1262 plan, the producing agent of record of the corporation policy is 1263 entitled to retain any unearned commission on such policy, and 1264 the insurer shall either: 1265 (I)Pay to the producing agent of record of the policy, for 1266 the first year, an amount which is the greater of the insurers 1267 usual and customary commission for the type of policy written or 1268 a policy fee equal to the usual and customary commission of the 1269 corporation; or 1270 (II)Offer to allow the producing agent of record of the 1271 policy to continue servicing the policy for a period of not less 1272 than 1 year and offer to pay the agent the insurers usual and 1273 customary commission for the type of policy written. If the 1274 producing agent is unwilling or unable to accept appointment by 1275 the new insurer, the new insurer shall pay the agent in 1276 accordance with sub-sub-subparagraph (I). 1277 b.Any credit or exemption from regular assessments adopted 1278 under this subparagraph shall last no longer than the 3 years 1279 following the cancellation or expiration of the policy by the 1280 corporation. With the approval of the office, the board may 1281 extend such credits for an additional year if the insurer 1282 guarantees an additional year of renewability for all policies 1283 removed from the corporation, or for 2 additional years if the 1284 insurer guarantees 2 additional years of renewability for all 1285 policies so removed. 1286 c.There shall be no credit, limitation, exemption, or 1287 deferment from emergency assessments to be collected from 1288 policyholders pursuant to sub-subparagraph (b)3.d. 1289 d.Notwithstanding any other law, for purposes of a 1290 depopulation, take-out, or keep-out program adopted by the 1291 corporation, including an initial or renewal offer of coverage 1292 made to a policyholder removed from the corporation pursuant to 1293 such program, an eligible surplus lines insurer may participate 1294 in the program in the same manner and on the same terms as an 1295 authorized insurer, except as provided under this sub 1296 subparagraph. 1297 (I)The policy count of the corporation must be more than 1298 700,000 within the 30 days before the time a take-out offer is 1299 made by a surplus lines insurer. 1300 (II)To qualify for participation, the surplus lines 1301 insurer must first obtain approval from the office for its 1302 depopulation, take-out, or keep-out plan and then comply with 1303 all of the corporations requirements for the plan applicable to 1304 admitted insurers and with all statutory provisions applicable 1305 to the removal of policies from the corporation. 1306 (III)In considering a surplus lines insurers request for 1307 approval for its plan, the office shall determine whether the 1308 surplus lines insurer meets the following requirements: 1309 (A)Maintains a surplus of $50 million on a company or 1310 pooled basis; 1311 (B)Has a superior, excellent, exceptional, or equally 1312 comparable financial strength rating by a rating agency 1313 acceptable to the office; 1314 (C)Maintains reserves, surplus, reinsurance, and 1315 reinsurance equivalents sufficient to cover the insurers 100 1316 year probable maximum hurricane loss at least twice in a single 1317 hurricane season and submits such reinsurance to the office to 1318 review for purposes of the take-out; 1319 (D)Provides prominent notice to the policyholder before 1320 the assumption of the policy that surplus lines policies are not 1321 provided coverage by the Florida Insurance Guaranty Association 1322 and provides an outline of any substantial differences in 1323 coverage between the existing policy and the policy being 1324 offered to the insured; and 1325 (E)Provides policy coverage similar to that provided by 1326 the corporation. 1327 (IV)To obtain approval for a plan, the surplus lines 1328 insurer must file the following with the office: 1329 (A)Information requested by the office to demonstrate 1330 compliance with s. 624.404(3), including biographical 1331 affidavits, fingerprints processed pursuant to s. 624.34, and 1332 the results of criminal history records checks for officers and 1333 directors of the insurer and its parent or holding company; 1334 (B)A service-of-process consent and agreement form 1335 executed by the insurer; 1336 (C)Proof that the insurer has been an eligible or 1337 authorized insurer for at least 3 years; 1338 (D)A duly authenticated copy of the insurers current 1339 audited financial statement, in English, which, in the case of 1340 statements originally made in the currencies of other countries, 1341 expresses all monetary values in United States dollars, at an 1342 exchange rate then current and shown in the statement, and 1343 including any additional information relative to the insurer as 1344 the office may request; 1345 (E)A complete certified copy of the latest official 1346 financial statement required by the insurers domiciliary state, 1347 if different from the statement required by sub-sub-sub 1348 subparagraph (D); and 1349 (F)If applicable, a copy of the United States trust 1350 account agreement. 1351 1352 This sub-sub-subparagraph does not subject any surplus lines 1353 insurer to requirements in addition to part VIII of chapter 626. 1354 Surplus lines brokers making an offer of coverage under this 1355 sub-subparagraph are not required to comply with s. 1356 626.916(1)(a), (b), (c), or (e). 1357 (V)Within 10 days after the date of assumption, the 1358 surplus lines insurer assuming policies from the corporation 1359 shall remit to the Bureau of Collateral Management within the 1360 Department of Financial Services a special deposit equal to the 1361 unearned premium net of unearned commissions on the assumed 1362 block of business. The surplus lines insurer shall submit to the 1363 office, along with the special deposit, an accounting of the 1364 policies assumed and the amount of unearned premium for such 1365 policies and a sworn affidavit attesting to the accuracy of the 1366 accounting by an officer of the surplus lines insurer. 1367 Thereafter, the surplus lines insurer shall make a filing within 1368 10 days after the end of each calendar quarter attesting to the 1369 unearned premium in force for the previous quarter on policies 1370 assumed from the corporation and shall submit additional funds 1371 with that filing if the special deposit is insufficient to cover 1372 the unearned premium on assumed policies, or shall receive a 1373 return of funds within 60 days if the special deposit exceeds 1374 the amount of unearned premium required for assumed policies. 1375 The special deposit is an asset of the surplus lines insurer 1376 which is held by the department for the benefit of state 1377 policyholders of the surplus lines insurer in the event of the 1378 insolvency of the surplus lines insurer. If an order of 1379 liquidation is entered in any state against the surplus lines 1380 insurer, the department may use the special deposit for payment 1381 of unearned premium or policy claims, return all or part of the 1382 deposit to the domiciliary receiver, or use the funds in 1383 accordance with any action authorized under part I of chapter 1384 631 or in compliance with any order of a court having 1385 jurisdiction over the insolvency. 1386 (VI)In advance of a surplus lines insurer assuming a 1387 policy, surplus lines brokers representing a surplus lines 1388 insurer on a take-out program shall obtain confirmation, in 1389 written or e-mail form, from each producing agent stating that 1390 the agent is willing to participate in the take-out program with 1391 the surplus lines insurer engaging in the take-out program. The 1392 take-out program is also subject to s. 627.3517. If a 1393 policyholder is selected for removal from the corporation by a 1394 surplus lines insurer and an authorized insurer, the corporation 1395 must give priority to the offer of coverage from the authorized 1396 insurer. 1397 (VII)(A)A risk that has a dwelling replacement cost of 1398 $700,000 or more or a single condominium unit that has a 1399 combined dwelling and contents replacement cost of $700,000 or 1400 more is not eligible for coverage by the corporation if it is 1401 offered comparable coverage from a qualified surplus lines 1402 insurer at a premium no greater than the premium charged by the 1403 corporation. 1404 (B)A risk that has a dwelling replacement cost below 1405 $700,000 or a single condominium unit that has a combined 1406 dwelling and contents replacement cost below $700,000 remains 1407 eligible for coverage by the corporation if it is offered 1408 coverage from a qualified surplus lines insurer. 1409 4.The plan shall provide for the deferment, in whole or in 1410 part, of the assessment of an assessable insurer, other than an 1411 emergency assessment collected from policyholders pursuant to 1412 sub-subparagraph (b)3.d., if the office finds that payment of 1413 the assessment would endanger or impair the solvency of the 1414 insurer. In the event an assessment against an assessable 1415 insurer is deferred in whole or in part, the amount by which 1416 such assessment is deferred may be assessed against the other 1417 assessable insurers in a manner consistent with the basis for 1418 assessments set forth in paragraph (b). 1419 5.Effective July 1, 2007, in order to evaluate the costs 1420 and benefits of approved take-out plans, if the corporation pays 1421 a bonus or other payment to an insurer for an approved take-out 1422 plan, it shall maintain a record of the address or such other 1423 identifying information on the property or risk removed in order 1424 to track if and when the property or risk is later insured by 1425 the corporation. 1426 6.Any policy taken out, assumed, or removed from the 1427 corporation is, as of the effective date of the take-out, 1428 assumption, or removal, direct insurance issued by the insurer 1429 and not by the corporation, even if the corporation continues to 1430 service the policies. This subparagraph applies to policies of 1431 the corporation and not policies taken out, assumed, or removed 1432 from any other entity. 1433 7.For a policy taken out, assumed, or removed from the 1434 corporation, the insurer may, for a period of no more than 3 1435 years, continue to use any of the corporations policy forms or 1436 endorsements that apply to the policy taken out, removed, or 1437 assumed without obtaining approval from the office for use of 1438 such policy form or endorsement. 1439 (x)1.The following records of the corporation are 1440 confidential and exempt from the provisions of s. 119.07(1) and 1441 s. 24(a), Art. I of the State Constitution: 1442 a.Underwriting files, except that a policyholder or an 1443 applicant shall have access to his or her own underwriting 1444 files. Confidential and exempt underwriting file records may 1445 also be released to other governmental agencies upon written 1446 request and demonstration of need; such records held by the 1447 receiving agency remain confidential and exempt as provided 1448 herein. 1449 b.Claims files, until termination of all litigation and 1450 settlement of all claims arising out of the same incident, 1451 although portions of the claims files may remain exempt, as 1452 otherwise provided by law. Confidential and exempt claims file 1453 records may be released to other governmental agencies upon 1454 written request and demonstration of need; such records held by 1455 the receiving agency remain confidential and exempt as provided 1456 herein. 1457 c.Records obtained or generated by an internal auditor 1458 pursuant to a routine audit, until the audit is completed, or if 1459 the audit is conducted as part of an investigation, until the 1460 investigation is closed or ceases to be active. An investigation 1461 is considered active while the investigation is being 1462 conducted with a reasonable, good faith belief that it could 1463 lead to the filing of administrative, civil, or criminal 1464 proceedings. 1465 d.Matters reasonably encompassed in privileged attorney 1466 client communications. 1467 e.Proprietary information licensed to the corporation 1468 under contract and the contract provides for the confidentiality 1469 of such proprietary information. 1470 f.All information relating to the medical condition or 1471 medical status of a corporation employee which is not relevant 1472 to the employees capacity to perform his or her duties, except 1473 as otherwise provided in this paragraph. Information that is 1474 exempt includes shall include, but is not limited to, 1475 information relating to workers compensation, insurance 1476 benefits, and retirement or disability benefits. 1477 g.Upon an employees entrance into the employee assistance 1478 program, a program to assist any employee who has a behavioral 1479 or medical disorder, substance abuse problem, or emotional 1480 difficulty that affects the employees job performance, all 1481 records relative to that participation are shall be confidential 1482 and exempt from the provisions of s. 119.07(1) and s. 24(a), 1483 Art. I of the State Constitution, except as otherwise provided 1484 in s. 112.0455(11). 1485 h.Information relating to negotiations for financing, 1486 reinsurance, depopulation, or contractual services, until the 1487 conclusion of the negotiations. 1488 i.Minutes of closed meetings regarding underwriting files, 1489 and minutes of closed meetings regarding an open claims file 1490 until termination of all litigation and settlement of all claims 1491 with regard to that claim, except that information otherwise 1492 confidential or exempt by law must shall be redacted. 1493 2.If an authorized insurer, a reinsurance intermediary, an 1494 eligible surplus lines insurer, or an entity that has filed an 1495 application with the office for licensure as a property and 1496 casualty insurer in this state is considering writing or 1497 assisting in the underwriting of a risk insured by the 1498 corporation, relevant information from both the underwriting 1499 files and confidential claims files may be released to the 1500 insurer, reinsurance intermediary, eligible surplus lines 1501 insurer, or entity that has been created to seek authority to 1502 write property insurance in this state, provided that the 1503 recipient insurer agrees in writing, notarized and under oath, 1504 to maintain the confidentiality of such files. If a policy file 1505 is transferred to an insurer, that policy file is no longer a 1506 public record because it is not held by an agency subject to the 1507 provisions of the public records law. Underwriting files and 1508 confidential claims files may also be released to staff and the 1509 board of governors of the market assistance plan established 1510 pursuant to s. 627.3515, who must retain the confidentiality of 1511 such files, except such files may be released to authorized 1512 insurers that are considering assuming the risks to which the 1513 files apply, provided the insurer agrees in writing, notarized 1514 and under oath, to maintain the confidentiality of such files. 1515 Finally, the corporation or the board or staff of the market 1516 assistance plan may make the following information obtained from 1517 underwriting files and confidential claims files available to an 1518 entity that has obtained a permit to become an authorized 1519 insurer, a reinsurer that may provide reinsurance under s. 1520 624.610, a licensed reinsurance broker, a licensed rating 1521 organization, a modeling company, or a licensed general lines 1522 insurance agent: name, address, and telephone number of the 1523 residential property owner or insured; location of the risk; 1524 rating information; loss history; and policy type. The receiving 1525 person must retain the confidentiality of the information 1526 received and may use the information only for the purposes of 1527 developing a take-out plan or a rating plan to be submitted to 1528 the office for approval or otherwise analyzing the underwriting 1529 of a risk or risks insured by the corporation on behalf of the 1530 private insurance market. A licensed general lines insurance 1531 agent may not use such information for the direct solicitation 1532 of policyholders. 1533 3.A policyholder who has filed suit against the 1534 corporation has the right to discover the contents of his or her 1535 own claims file to the same extent that discovery of such 1536 contents would be available from a private insurer in litigation 1537 as provided by the Florida Rules of Civil Procedure, the Florida 1538 Evidence Code, and other applicable law. Pursuant to subpoena, a 1539 third party has the right to discover the contents of an 1540 insureds or applicants underwriting or claims file to the same 1541 extent that discovery of such contents would be available from a 1542 private insurer by subpoena as provided by the Florida Rules of 1543 Civil Procedure, the Florida Evidence Code, and other applicable 1544 law, and subject to any confidentiality protections requested by 1545 the corporation and agreed to by the seeking party or ordered by 1546 the court. The corporation may release confidential underwriting 1547 and claims file contents and information as it deems necessary 1548 and appropriate to underwrite or service insurance policies and 1549 claims, subject to any confidentiality protections deemed 1550 necessary and appropriate by the corporation. 1551 4.Portions of meetings of the corporation are exempt from 1552 the provisions of s. 286.011 and s. 24(b), Art. I of the State 1553 Constitution wherein confidential underwriting files or 1554 confidential open claims files are discussed. All portions of 1555 corporation meetings which are closed to the public shall be 1556 recorded by a court reporter. The court reporter shall record 1557 the times of commencement and termination of the meeting, all 1558 discussion and proceedings, the names of all persons present at 1559 any time, and the names of all persons speaking. No portion of 1560 any closed meeting shall be off the record. Subject to the 1561 provisions hereof and s. 119.07(1)(d)-(f), the court reporters 1562 notes of any closed meeting shall be retained by the corporation 1563 for a minimum of 5 years. A copy of the transcript, less any 1564 exempt matters, of any closed meeting wherein claims are 1565 discussed shall become public as to individual claims after 1566 settlement of the claim. 1567 (ii)The corporation shall revise the programs adopted 1568 pursuant to sub-subparagraph (q)3.a. for personal lines 1569 residential policies to maximize policyholder options and 1570 encourage increased participation by insurers and agents. After 1571 January 1, 2017, a policy may not be taken out of the 1572 corporation unless the provisions of this paragraph are met. 1573 1.The corporation must publish a periodic schedule of 1574 cycles during which an insurer may identify, and notify the 1575 corporation of, policies that the insurer is requesting to take 1576 out. A request must include a description of the coverage 1577 offered and an estimated premium and must be submitted to the 1578 corporation in a form and manner prescribed by the corporation. 1579 2.The corporation must maintain and make available to the 1580 agent of record a consolidated list of all insurers requesting 1581 to take out a policy. The list must include a description of the 1582 coverage offered and the estimated premium for each take-out 1583 request. 1584 3.The corporation must provide written notice to the 1585 policyholder and the agent of record regarding all insurers 1586 requesting to take out the policy, which notice must inform that 1587 a take-out offer that is not more than 20 percent greater than 1588 the corporations premium renders the risk ineligible for 1589 coverage from and regarding the policyholders option to accept 1590 a take-out offer or to reject all take-out offers and to remain 1591 with the corporation. The notice must be in a format prescribed 1592 by the corporation and include, for each take-out offer: 1593 a.The amount of the estimated premium; 1594 b.A description of the coverage; and 1595 c.A comparison of the estimated premium and coverage 1596 offered by the insurer to the estimated premium and coverage 1597 provided by the corporation. 1598 Section 4.Section 627.3518, Florida Statutes, is amended 1599 to read: 1600 627.3518Citizens Property Insurance Corporation 1601 policyholder eligibility clearinghouse program.The purpose of 1602 this section is to provide a framework for the corporation to 1603 implement a clearinghouse program by January 1, 2014. 1604 (1)As used in this section, the term: 1605 (a)Corporation means Citizens Property Insurance 1606 Corporation. 1607 (b)Exclusive agent means any licensed insurance agent 1608 that has, by contract, agreed to act exclusively for one company 1609 or group of affiliated insurance companies and is disallowed by 1610 the provisions of that contract to directly write for any other 1611 unaffiliated insurer absent express consent from the company or 1612 group of affiliated insurance companies. 1613 (c)Independent agent means any licensed insurance agent 1614 not described in paragraph (b). 1615 (d)Program means the clearinghouse created under this 1616 section. 1617 (2)In order to confirm eligibility with the corporation 1618 and to enhance access of new applicants for coverage and 1619 existing policyholders of the corporation to offers of coverage 1620 from authorized insurers, the corporation shall establish a 1621 program for personal residential risks in order to facilitate 1622 the diversion of ineligible applicants and existing 1623 policyholders from the corporation into the voluntary insurance 1624 market. The corporation shall also develop appropriate 1625 procedures for facilitating the diversion of ineligible 1626 applicants and existing policyholders for commercial residential 1627 coverage into the private insurance market and shall report such 1628 procedures to the President of the Senate and the Speaker of the 1629 House of Representatives by January 1, 2014. 1630 (3)The corporation board shall establish the clearinghouse 1631 program as an organizational unit within the corporation. The 1632 program shall have all the rights and responsibilities in 1633 carrying out its duties as a licensed general lines agent, but 1634 may not be required to employ or engage a licensed general lines 1635 agent or to maintain an insurance agency license to carry out 1636 its activities in the solicitation and placement of insurance 1637 coverage. In establishing the program, the corporation may: 1638 (a)Require all new applications, and all policies due for 1639 renewal, to be submitted for coverage to the program in order to 1640 facilitate obtaining an offer of coverage from an authorized 1641 insurer before binding or renewing coverage by the corporation. 1642 (b)Employ or otherwise contract with individuals or other 1643 entities for appropriate administrative or professional services 1644 to effectuate the plan within the corporation in accordance with 1645 the applicable purchasing requirements under s. 627.351. 1646 (c)Enter into contracts with any authorized insurer to 1647 participate in the program and accept an appointment by such 1648 insurer. 1649 (d)Provide funds to operate the program. Insurers and 1650 agents participating in the program are not required to pay a 1651 fee to offset or partially offset the cost of the program or use 1652 the program for renewal of policies initially written through 1653 the clearinghouse. 1654 (e)Develop an enhanced application that includes 1655 information to assist private insurers in determining whether to 1656 make an offer of coverage through the program. 1657 (f)For personal lines residential risks, require, before 1658 approving all new applications for coverage by the corporation, 1659 that every application be subject to a period of 2 business days 1660 when any insurer participating in the program may select the 1661 application for coverage. The insurer may issue a binder on any 1662 policy selected for coverage for a period of at least 30 days 1663 but not more than 60 days. 1664 (4)Any authorized insurer may participate in the program; 1665 however, participation is not mandatory for any insurer. 1666 Insurers making offers of coverage to new applicants or renewal 1667 policyholders through the program: 1668 (a)May not be required to individually appoint any agent 1669 whose customer is underwritten and bound through the program. 1670 Notwithstanding s. 626.112, insurers are not required to appoint 1671 any agent on a policy underwritten through the program for as 1672 long as that policy remains with the insurer. Insurers may, at 1673 their election, appoint any agent whose customer is initially 1674 underwritten and bound through the program. In the event an 1675 insurer accepts a policy from an agent who is not appointed 1676 pursuant to this paragraph, and thereafter elects to accept a 1677 policy from such agent, the provisions of s. 626.112 requiring 1678 appointment apply to the agent. 1679 (b)Must enter into a limited agency agreement with each 1680 agent that is not appointed in accordance with paragraph (a) and 1681 whose customer is underwritten and bound through the program. 1682 (c)Must enter into its standard agency agreement with each 1683 agent whose customer is underwritten and bound through the 1684 program when that agent has been appointed by the insurer 1685 pursuant to s. 626.112. 1686 (d)Must comply with s. 627.4133(2). 1687 (e)May participate through their single-designated 1688 managing general agent or broker; however, the provisions of 1689 paragraph (6)(a) regarding ownership, control, and use of the 1690 expirations continue to apply. 1691 (f)Must pay to the producing agent a commission equal to 1692 that paid by the corporation or the usual and customary 1693 commission paid by the insurer for that line of business, 1694 whichever is greater. 1695 (5)Notwithstanding s. 627.3517, any applicant for new 1696 coverage from the corporation is not eligible for coverage from 1697 the corporation if provided an offer of coverage from an 1698 authorized insurer through the program at a premium that is at 1699 or below the eligibility threshold established in s. 1700 627.351(6)(c)5.a. Whenever an offer of coverage for a personal 1701 lines risk is received for a policyholder of the corporation at 1702 renewal from an authorized insurer through the program, if the 1703 offer is at or below the eligibility threshold established in s. 1704 627.351(6)(c)5.a. equal to or less than the corporations 1705 renewal premium for comparable coverage, the risk is not 1706 eligible for coverage with the corporation. In the event an 1707 offer of coverage for a new applicant is received from an 1708 authorized insurer through the program, and the premium offered 1709 exceeds the eligibility threshold contained in s. 1710 627.351(6)(c)5.a., the applicant or insured may elect to accept 1711 such coverage, or may elect to accept or continue coverage with 1712 the corporation. In the event an offer of coverage for a 1713 personal lines risk is received from an authorized insurer at 1714 renewal through the program, and the premium offered is at or 1715 below the eligibility threshold established in s. 1716 627.351(6)(c)5.a. more than the corporations renewal premium 1717 for comparable coverage, the insured is not eligible to may 1718 elect to accept such coverage, or may elect to accept or 1719 continue coverage with the corporation. Section 1720 627.351(6)(c)5.a.(I) does not apply to an offer of coverage from 1721 an authorized insurer obtained through the program. An applicant 1722 for coverage from the corporation who was declared ineligible 1723 for coverage at renewal by the corporation in the previous 36 1724 months due to an offer of coverage pursuant to this subsection 1725 shall be considered a renewal under this section if the 1726 corporation determines that the authorized insurer making the 1727 offer of coverage pursuant to this subsection continues to 1728 insure the applicant and increased the rate on the policy in 1729 excess of the increase allowed for the corporation under s. 1730 627.351(6)(n)5. 1731 (6)Independent insurance agents submitting new 1732 applications for coverage or that are the agent of record on a 1733 renewal policy submitted to the program: 1734 (a)Are granted and must maintain ownership and the 1735 exclusive use of expirations, records, or other written or 1736 electronic information directly related to such applications or 1737 renewals written through the corporation or through an insurer 1738 participating in the program, notwithstanding s. 1739 627.351(6)(c)5.a.(I)(B) and (II)(B). Such ownership is granted 1740 for as long as the insured remains with the agency or until sold 1741 or surrendered in writing by the agent. Contracts with the 1742 corporation or required by the corporation must not amend, 1743 modify, interfere with, or limit such rights of ownership. Such 1744 expirations, records, or other written or electronic information 1745 may be used to review an application, issue a policy, or for any 1746 other purpose necessary for placing such business through the 1747 program. 1748 (b)May not be required to be appointed by any insurer 1749 participating in the program for policies written solely through 1750 the program, notwithstanding the provisions of s. 626.112. 1751 (c)May accept an appointment from any insurer 1752 participating in the program. 1753 (d)May enter into either a standard or limited agency 1754 agreement with the insurer, at the insurers option. 1755 1756 Applicants ineligible for coverage in accordance with subsection 1757 (5) remain ineligible if their independent agent is unwilling or 1758 unable to enter into a standard or limited agency agreement with 1759 an insurer participating in the program. 1760 (7)Exclusive agents submitting new applications for 1761 coverage or that are the agent of record on a renewal policy 1762 submitted to the program: 1763 (a)Must maintain ownership and the exclusive use of 1764 expirations, records, or other written or electronic information 1765 directly related to such applications or renewals written 1766 through the corporation or through an insurer participating in 1767 the program, notwithstanding s. 627.351(6)(c)5.a.(I)(B) and 1768 (II)(B). Contracts with the corporation or required by the 1769 corporation must not amend, modify, interfere with, or limit 1770 such rights of ownership. Such expirations, records, or other 1771 written or electronic information may be used to review an 1772 application, issue a policy, or for any other purpose necessary 1773 for placing such business through the program. 1774 (b)May not be required to be appointed by any insurer 1775 participating in the program for policies written solely through 1776 the program, notwithstanding the provisions of s. 626.112. 1777 (c)Must only facilitate the placement of an offer of 1778 coverage from an insurer whose limited servicing agreement is 1779 approved by that exclusive agents exclusive insurer. 1780 (d)May enter into a limited servicing agreement with the 1781 insurer making an offer of coverage, and only after the 1782 exclusive agents insurer has approved the limited servicing 1783 agreement terms. The exclusive agents insurer must approve a 1784 limited service agreement for the program for any insurer for 1785 which it has approved a service agreement for other purposes. 1786 1787 Applicants ineligible for coverage in accordance with subsection 1788 (5) remain ineligible if their exclusive agent is unwilling or 1789 unable to enter into a standard or limited agency agreement with 1790 an insurer making an offer of coverage to that applicant. 1791 (8)Submission of an application for coverage by the 1792 corporation to the program does not constitute the binding of 1793 coverage by the corporation, and failure of the program to 1794 obtain an offer of coverage by an insurer may not be considered 1795 acceptance of coverage of the risk by the corporation. 1796 (9)The 45-day notice of nonrenewal requirement set forth 1797 in s. 627.4133(2)(b)5. applies when a policy is nonrenewed by 1798 the corporation because the risk has received an offer of 1799 coverage pursuant to this section which renders the risk 1800 ineligible for coverage by the corporation. 1801 (10)The program may not include commercial nonresidential 1802 policies. 1803 (11)Proprietary business information provided to the 1804 corporations clearinghouse by insurers with respect to 1805 identifying and selecting risks for an offer of coverage is 1806 confidential and exempt from s. 119.07(1) and s. 24(a), Art. I 1807 of the State Constitution. 1808 (a)As used in this subsection, the term proprietary 1809 business information means information, regardless of form or 1810 characteristics, which is owned or controlled by an insurer and: 1811 1.Is identified by the insurer as proprietary business 1812 information and is intended to be and is treated by the insurer 1813 as private in that the disclosure of the information would cause 1814 harm to the insurer, an individual, or the companys business 1815 operations and has not been disclosed unless disclosed pursuant 1816 to a statutory requirement, an order of a court or 1817 administrative body, or a private agreement that provides that 1818 the information will not be released to the public; 1819 2.Is not otherwise readily ascertainable or publicly 1820 available by proper means by other persons from another source 1821 in the same configuration as provided to the clearinghouse; and 1822 3.Includes: 1823 a.Trade secrets, as defined in s. 688.002. 1824 b.Information relating to competitive interests, the 1825 disclosure of which would impair the competitive business of the 1826 provider of the information. 1827 1828 Proprietary business information may be found in underwriting 1829 criteria or instructions which are used to identify and select 1830 risks through the program for an offer of coverage and are 1831 shared with the clearinghouse to facilitate the shopping of 1832 risks with the insurer. 1833 (b)The clearinghouse may disclose confidential and exempt 1834 proprietary business information: 1835 1.If the insurer to which it pertains gives prior written 1836 consent; 1837 2.Pursuant to a court order; or 1838 3.To another state agency in this or another state or to a 1839 federal agency if the recipient agrees in writing to maintain 1840 the confidential and exempt status of the document, material, or 1841 other information and has verified in writing its legal 1842 authority to maintain such confidentiality. 1843 Section 5.Subsections (2) and (4) of section 627.701, 1844 Florida Statutes, are amended, and subsection (10) is added to 1845 that section, to read: 1846 627.701Liability of insureds; coinsurance; deductibles. 1847 (2)Unless the office determines that the deductible 1848 provision is clear and unambiguous, a property insurer may not 1849 issue an insurance policy or contract covering real property in 1850 this state which contains a deductible provision that: 1851 (a)Applies solely to hurricane losses. 1852 (b)States the deductible as a percentage rather than as a 1853 specific amount of money. 1854 (c)Applies a roof deductible as provided in subsection 1855 (10). 1856 (4)(a)Any policy that contains a separate hurricane 1857 deductible must on its face include in boldfaced type no smaller 1858 than 18 points the following statement: THIS POLICY CONTAINS A 1859 SEPARATE DEDUCTIBLE FOR HURRICANE LOSSES, WHICH MAY RESULT IN 1860 HIGH OUT-OF-POCKET EXPENSES TO YOU. A policy containing a 1861 coinsurance provision applicable to hurricane losses must on its 1862 face include in boldfaced type no smaller than 18 points the 1863 following statement: THIS POLICY CONTAINS A CO-PAY PROVISION 1864 THAT MAY RESULT IN HIGH OUT-OF-POCKET EXPENSES TO YOU. 1865 (b)For any personal lines residential property insurance 1866 policy containing a separate hurricane deductible, the insurer 1867 shall compute and prominently display the actual dollar value of 1868 the hurricane deductible on the declarations page of the policy 1869 at issuance and, for renewal, on the renewal declarations page 1870 of the policy or on the premium renewal notice. 1871 (c)For any personal lines residential property insurance 1872 policy containing an inflation guard rider, the insurer shall 1873 compute and prominently display the actual dollar value of the 1874 hurricane deductible on the declarations page of the policy at 1875 issuance and, for renewal, on the renewal declarations page of 1876 the policy or on the premium renewal notice. In addition, for 1877 any personal lines residential property insurance policy 1878 containing an inflation guard rider, the insurer shall notify 1879 the policyholder of the possibility that the hurricane 1880 deductible may be higher than indicated when loss occurs due to 1881 application of the inflation guard rider. Such notification 1882 shall be made on the declarations page of the policy at issuance 1883 and, for renewal, on the renewal declarations page of the policy 1884 or on the premium renewal notice. 1885 (d)1.A personal lines residential property insurance 1886 policy covering a risk valued at less than $500,000 may not have 1887 a hurricane deductible in excess of 10 percent of the policy 1888 dwelling limits, unless the following conditions are met: 1889 a.The policyholder must personally write and provide to 1890 the insurer the following statement in his or her own 1891 handwriting and sign his or her name, which must also be signed 1892 by every other named insured on the policy, and dated: I do not 1893 want the insurance on my home to pay for the first (specify 1894 dollar value) of damage from hurricanes. I will pay those costs. 1895 My insurance will not. 1896 b.If the structure insured by the policy is subject to a 1897 mortgage or lien, the policyholder must provide the insurer with 1898 a written statement from the mortgageholder or lienholder 1899 indicating that the mortgageholder or lienholder approves the 1900 policyholder electing to have the specified deductible. 1901 2.A deductible subject to the requirements of this 1902 paragraph applies for the term of the policy and for each 1903 renewal thereafter. Changes to the deductible percentage may be 1904 implemented only as of the date of renewal. 1905 3.An insurer shall keep the original copy of the signed 1906 statement required by this paragraph, electronically or 1907 otherwise, and provide a copy to the policyholder providing the 1908 signed statement. A signed statement meeting the requirements of 1909 this paragraph creates a presumption that there was an informed, 1910 knowing election of coverage. 1911 4.The commission shall adopt rules providing appropriate 1912 alternative methods for providing the statements required by 1913 this section for policyholders who have a handicapping or 1914 disabling condition that prevents them from providing a 1915 handwritten statement. 1916 (e)1.Any personal lines residential property insurance 1917 policy that contains a separate roof deductible must on its face 1918 include in boldfaced type no smaller than 18 points the 1919 following statement: THIS POLICY CONTAINS A SEPARATE DEDUCTIBLE 1920 FOR ROOF LOSSES WHICH MAY RESULT IN HIGH OUT-OF-POCKET EXPENSES 1921 TO YOU. 1922 2.For any personal lines residential property insurance 1923 policy containing a separate roof deductible, the insurer shall 1924 compute and prominently display the actual dollar value of the 1925 roof deductible on the declarations page of the policy at 1926 issuance and, for renewal, on the renewal declarations page of 1927 the policy or on the premium renewal notice. 1928 (10)Notwithstanding any other provision of this section 1929 and any other provision of law, a property insurer may require a 1930 separate roof deductible as a condition of eligibility or 1931 renewal of a residential property insurance policy if all of the 1932 following conditions are met: 1933 (a)The roof deductible does not exceed 2 percent of the 1934 policy dwelling limits. 1935 (b)The premium for such coverage includes an actuarially 1936 sound premium discount or credit for the impact of the roof 1937 deductible. 1938 (c)If a roof deductible is added to the policy at renewal, 1939 the insurer provides a notice of change in policy terms pursuant 1940 to s. 627.43141. 1941 (d)The roof deductible does not apply to: 1942 1.A total loss to a primary structure in accordance with 1943 the valued policy law under s. 627.702 which is caused by a 1944 covered peril. 1945 2.A roof loss that is caused by a hurricane as defined by 1946 s. 627.4025(2). 1947 3.A roof loss that can be repaired without replacement of 1948 the roof. 1949 (e)If a roof deductible is applied, no other policy 1950 deductible may be applied to the loss. If, however, a roof 1951 deductible is not applied, the all-other-perils deductible or 1952 the hurricane deductible may be applied. 1953 Section 6.Paragraph (a) of subsection (3) of section 1954 627.7011, Florida Statutes, is amended to read: 1955 627.7011Homeowners policies; offer of replacement cost 1956 coverage and law and ordinance coverage. 1957 (3)In the event of a loss for which a dwelling or personal 1958 property is insured on the basis of replacement costs: 1959 (a)For a dwelling, the insurer must initially pay at least 1960 the actual cash value of the insured loss, less any applicable 1961 deductible. The insurer shall pay any remaining amounts 1962 necessary to perform such repairs as work is performed and 1963 expenses are incurred. However, if a roof deductible under s. 1964 627.701(10) is applied to the insured loss, the insurer may 1965 limit the claim payment as to the roof to the actual cash value 1966 of the loss to the roof until the insurer receives reasonable 1967 proof of payment by the policyholder of the roof deductible. 1968 Reasonable proof of payment includes a canceled check, money 1969 order receipt, credit card statement, or copy of an executed 1970 installment plan contract or other financing arrangement that 1971 requires full payment of the deductible over time. If a total 1972 loss of a dwelling occurs, the insurer shall pay the replacement 1973 cost coverage without reservation or holdback of any 1974 depreciation in value, pursuant to s. 627.702. 1975 Section 7.Paragraph (b) of subsection (8) of section 1976 627.70152, Florida Statutes, is amended to read: 1977 627.70152Suits arising under a property insurance policy. 1978 (8)ATTORNEY FEES. 1979 (b)In a suit arising under a residential or commercial 1980 property insurance policy not brought by an assignee, if a court 1981 dismisses a claimants suit pursuant to subsection (5), the 1982 court may not award to the claimant any incurred attorney fees 1983 for services rendered before the dismissal of the suit. When a 1984 claimants suit is dismissed pursuant to subsection (5), the 1985 defendant may be awarded reasonable attorney fees and costs 1986 associated with securing the dismissal. 1987 Section 8.For the purpose of incorporating the amendments 1988 made by this act to section 627.351, Florida Statutes, in a 1989 reference thereto, subsection (10) of section 624.424, Florida 1990 Statutes, is reenacted to read: 1991 624.424Annual statement and other information. 1992 (10)Each insurer or insurer group doing business in this 1993 state shall file on a quarterly basis in conjunction with 1994 financial reports required by paragraph (1)(a) a supplemental 1995 report on an individual and group basis on a form prescribed by 1996 the commission with information on personal lines and commercial 1997 lines residential property insurance policies in this state. The 1998 supplemental report shall include separate information for 1999 personal lines property policies and for commercial lines 2000 property policies and totals for each item specified, including 2001 premiums written for each of the property lines of business as 2002 described in ss. 215.555(2)(c) and 627.351(6)(a). The report 2003 shall include the following information for each county on a 2004 monthly basis: 2005 (a)Total number of policies in force at the end of each 2006 month. 2007 (b)Total number of policies canceled. 2008 (c)Total number of policies nonrenewed. 2009 (d)Number of policies canceled due to hurricane risk. 2010 (e)Number of policies nonrenewed due to hurricane risk. 2011 (f)Number of new policies written. 2012 (g)Total dollar value of structure exposure under policies 2013 that include wind coverage. 2014 (h)Number of policies that exclude wind coverage. 2015 Section 9.For the purpose of incorporating the amendments 2016 made by this act to section 627.351, Florida Statutes, in a 2017 reference thereto, section 627.3517, Florida Statutes, is 2018 reenacted to read: 2019 627.3517Consumer choice.No provision of s. 627.351, s. 2020 627.3511, or s. 627.3515 shall be construed to impair the right 2021 of any insurance risk apportionment plan policyholder, upon 2022 receipt of any keepout or take-out offer, to retain his or her 2023 current agent, so long as that agent is duly licensed and 2024 appointed by the insurance risk apportionment plan or otherwise 2025 authorized to place business with the insurance risk 2026 apportionment plan. This right shall not be canceled, suspended, 2027 impeded, abridged, or otherwise compromised by any rule, plan of 2028 operation, or depopulation plan, whether through keepout, take 2029 out, midterm assumption, or any other means, of any insurance 2030 risk apportionment plan or depopulation plan, including, but not 2031 limited to, those described in s. 627.351, s. 627.3511, or s. 2032 627.3515. The commission shall adopt any rules necessary to 2033 cause any insurance risk apportionment plan or market assistance 2034 plan under such sections to demonstrate that the operations of 2035 the plan do not interfere with, promote, or allow interference 2036 with the rights created under this section. If the 2037 policyholders current agent is unable or unwilling to be 2038 appointed with the insurer making the take-out or keepout offer, 2039 the policyholder shall not be disqualified from participation in 2040 the appropriate insurance risk apportionment plan because of an 2041 offer of coverage in the voluntary market. An offer of full 2042 property insurance coverage by the insurer currently insuring 2043 either the ex-wind or wind-only coverage on the policy to which 2044 the offer applies shall not be considered a take-out or keepout 2045 offer. Any rule, plan of operation, or plan of depopulation, 2046 through keepout, take-out, midterm assumption, or any other 2047 means, of any property insurance risk apportionment plan under 2048 s. 627.351(2) or (6) is subject to ss. 627.351(2)(b) and (6)(c) 2049 and 627.3511(4). 2050 Section 10.For the purpose of incorporating the amendments 2051 made by this act to section 627.351, Florida Statutes, in a 2052 reference thereto, subsection (1) of section 627.712, Florida 2053 Statutes, is reenacted to read: 2054 627.712Residential windstorm coverage required; 2055 availability of exclusions for windstorm or contents. 2056 (1)An insurer issuing a residential property insurance 2057 policy must provide windstorm coverage. Except as provided in 2058 paragraph (2)(c), this section does not apply to risks that are 2059 eligible for wind-only coverage from Citizens Property Insurance 2060 Corporation under s. 627.351(6), and risks that are not eligible 2061 for coverage from Citizens Property Insurance Corporation under 2062 s. 627.351(6)(a)3. or 5. A risk ineligible for coverage by the 2063 corporation under s. 627.351(6)(a)3. or 5. is exempt from this 2064 section only if the risk is located within the boundaries of the 2065 coastal account of the corporation. 2066 Section 11.This act shall take effect July 1, 2022.