HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 1 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to residual market insurers; amending 2
s. 626.913, F.S.; conforming a provision to changes 3
made by the act; amending s. 626.914, F.S.; removing 4
the definition of the term "diligent effort"; amending 5
s. 626.916, F.S.; removing the diligent ef fort and 6
other requirements for insurance coverage to be 7
eligible for export; providing presumption of being 8
informed and of knowing of certain insurance coverage 9
under specified circumstances; amending ss. 627.4085, 10
627.701, 627.70131, 627.70132, 627.7015 2, and 627.952, 11
F.S.; removing applicability and nonapplicability to 12
surplus lines insurance of provisions relating to 13
applications for insurance policies and annuity 14
contracts; liability of insureds, coinsurance, and 15
deductibles; insurers' duty to acknowl edge 16
communications regarding claims and investigations; 17
notice of property insurance claim; suits arising 18
under a property insurance policy; and risk retention 19
and purchasing group agents, respectively; creating 20
ss. 626.9261, 626.9262, 626.9263, and 626.9 264, F.S.; 21
transferring to surplus lines insurance those 22
provisions relating to liability of insureds and 23
deductibles; insurers' duty to acknowledge 24
communications regarding residential property 25
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 2 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
insurance claims and investigations; notice of 26
property insurance claim; suits arising under a 27
property insurance policy; and surplus lines agent 28
licenses and appointments, respectively; creating s. 29
626.9265, F.S.; prohibiting policyholders from 30
assigning post-loss insurance benefits under property 31
insurance policies; creating s. 626.9266, F.S.; 32
requiring settlements or verdicts against insureds as 33
a condition precedent to the accrual or maintenance of 34
causes of actions against liability insurers by 35
persons who are not insureds; providing that insurers 36
are parties for the purpose of recovering taxable 37
costs and attorney fees under certain circumstances; 38
authorizing insurers to insert specified contractual 39
provisions in liability insurance policies; 40
authorizing liability insurers to be joined as party 41
defendants under certain circumstances; prohibiting 42
insurers' presence from being disclosed under certain 43
circumstances; amending s. 626.931, F.S.; removing the 44
requirement that certain surplus lines agents file a 45
specified affidavit; amending s. 626.932, F.S.; 46
revising the timeline of the surplus lines tax 47
remittance by surplus lines agents to the Florida 48
Surplus Lines Service Office; amending s. 627.351, 49
F.S.; revising the requirements for licensed agents 50
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 3 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
appointed by Citizens Property Insurance Corporation 51
to write and renew certain insurance coverage; 52
amending ss. 626.918, 626.9325, and 626.9541, F.S.; 53
conforming cross-references; amending ss. 626.935 and 54
627.715, F.S.; conforming provisions to changes made 55
by the act; providing an effective date. 56
57
Be It Enacted by the Legislature of the State of Florida: 58
59
Section 1. Subsection (4) of section 626.913, Florida 60
Statutes, is amended to read: 61
626.913 Surplus Lines Law; short title; purposes. — 62
(4) Except as may be specifically stated to apply to 63
surplus lines insurers, the provisions of Chapter 627 does do 64
not apply to surplus lines insurance authorized under ss. 65
626.913-626.937, the Surplus Lines Law. 66
Section 2. Subsection (4) of section 626.914, Florida 67
Statutes, is amended to read: 68
626.914 Definitions. —As used in this Surplus Lines Law, 69
the term: 70
(4) "Diligent effort" means seeking coverage from and 71
having been rejected by at least three authorized insurers 72
currently writing this type of coverage and documenting these 73
rejections. However, if the residentia l structure has a dwelling 74
replacement cost of $700,000 or more, the term means seeking 75
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 4 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
coverage from and having been rejected by at least one 76
authorized insurer currently writing this type of coverage and 77
documenting this rejection. 78
Section 3. Section 626.916, Florida Statutes, is amended 79
to read: 80
626.916 Eligibility for export. — 81
(1) No insurance coverage shall be eligible for export 82
unless it meets all of the following conditions: 83
(a) The full amount of insurance required must not be 84
procurable, after a diligent effort has been made by the 85
producing agent to do so, from among the insurers authorized to 86
transact and actually writing that kind and class of insurance 87
in this state, and the amount of insurance exported shall be 88
only the excess over t he amount so procurable from authorized 89
insurers. Surplus lines agents must verify that a diligent 90
effort has been made by requiring a properly documented 91
statement of diligent effort from the retail or producing agent. 92
However, to be in compliance with th e diligent effort 93
requirement, the surplus lines agent's reliance must be 94
reasonable under the particular circumstances surrounding the 95
export of that particular risk. Reasonableness shall be assessed 96
by taking into account factors which include, but are n ot 97
limited to, a regularly conducted program of verification of the 98
information provided by the retail or producing agent. 99
Declinations must be documented on a risk -by-risk basis. If it 100
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 5 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
is not possible to obtain the full amount of insurance required 101
by layering the risk, it is permissible to export the full 102
amount. 103
(b) The premium rate at which the coverage is exported 104
shall not be lower than that rate applicable, if any, in actual 105
and current use by a majority of the authorized insurers for the 106
same coverage on a similar risk. 107
(c) The policy or contract form under which the insurance 108
is exported shall not be more favorable to the insured as to the 109
coverage or rate than under similar contracts on file and in 110
actual current use in this state by the majori ty of authorized 111
insurers actually writing similar coverages on similar risks; 112
except that a coverage may be exported under a unique form of 113
policy designed for use with respect to a particular subject of 114
insurance if a copy of such form is filed with the office by the 115
surplus lines agent desiring to use the same and is subject to 116
the disapproval of the office within 10 days of filing such form 117
exclusive of Saturdays, Sundays, and legal holidays if it finds 118
that the use of such special form is not reasonabl y necessary 119
for the principal purposes of the coverage or that its use would 120
be contrary to the purposes of this Surplus Lines Law with 121
respect to the reasonable protection of authorized insurers from 122
unwarranted competition by unauthorized insurers. 123
(d) Except as to extended coverage in connection with fire 124
insurance policies and except as to windstorm insurance, the 125
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 6 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
policy or contract under which the insurance is exported shall 126
not provide for deductible amounts, in determining the existence 127
or extent of the insurer's liability, other than those available 128
under similar policies or contracts in actual and current use by 129
one or more authorized insurers. 130
(e) the insured has signed or otherwise provided 131
documented acknowledgment of a disclosure in substantially the 132
following form: "You are agreeing to place coverage in the 133
surplus lines market. Coverage may be available in the admitted 134
market. Persons insured by surplus lines carriers are not 135
protected under the Florida Insurance Guaranty Act with respect 136
to any right of recovery for the obligation of an insolvent 137
unlicensed insurer." If the acknowledgment of the disclosure is 138
signed by the insured, the insure d is presumed to have been 139
informed and to know that other coverage may be available. 140
(2) The commission may by rule declare eligible for export 141
generally, and notwithstanding the provisions of paragraphs (a), 142
(b), (c), and (d) of subsection (1), any cla ss or classes of 143
insurance coverage or risk for which it finds, after a hearing, 144
that there is no reasonable or adequate market among authorized 145
insurers. Any such rules shall continue in effect during the 146
existence of the conditions upon which predicated, but subject 147
to termination by the commission. 148
(3)(a) Subsection (1) does not apply to wet marine and 149
transportation or aviation risks that are subject to s. 626.917. 150
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 7 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
(b) Subsection (1) does not apply to classes of insurance 151
which are related to indemn ity of deductibles for property 152
insurance or are subject to s. 627.062(3)(d)1. These classes may 153
be exportable under the following conditions: 154
1. The insurance must be placed only by or through a 155
surplus lines agent licensed in this state; 156
2. The insurer must be made eligible under s. 626.918; and 157
3. The insured has complied with paragraph (1)(e). If the 158
disclosure is signed by the insured, the insured is presumed to 159
have been informed and to know that other coverage may be 160
available, and, with respec t to the diligent-effort requirement 161
under subsection (1), there is no liability on the part of, and 162
no cause of action arises against, the retail agent presenting 163
the form. 164
(2)(4) A reasonable per-policy fee may be charged by the 165
filing surplus lines ag ent for each policy certified for export. 166
This per-policy fee must be itemized separately to the customer 167
before purchase and enumerated in the policy. 168
(3)(5) A retail agent may charge a reasonable per -policy 169
fee for placement of a surplus lines policy u nder this section. 170
This per-policy fee must be itemized separately to the customer 171
before purchase. 172
Section 4. Subsection (2) of section 627.4085, Florida 173
Statutes, is amended to read: 174
627.4085 Insurer name, agent name, and license 175
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 8 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
identification number required on application. — 176
(2) This section does not apply to surplus lines business 177
under the provisions of ss. 626.913 -626.937. 178
Section 5. Paragraph (d) of subsection (6) of section 179
627.701, Florida Statutes, is amended to read: 180
627.701 Liability of insureds; coinsurance; deductibles. — 181
(6) 182
(d) The office shall draft and formally propose as a rule 183
the form for the certificate of security. The certificate of 184
security may be issued in any of the following circumstances: 185
1. A mortgage lender o r other financial institution may 186
issue a certificate of security after granting the applicant a 187
line of credit, secured by equity in real property or other 188
reasonable security, which line of credit may be drawn on only 189
to pay for the deductible portion of insured construction or 190
reconstruction after a hurricane loss. In the sole discretion of 191
the mortgage lender or other financial institution, the line of 192
credit may be issued to an applicant on an unsecured basis. 193
2. A licensed insurance agent may issue a certificate of 194
security after obtaining for an applicant a line of credit, 195
secured by equity in real property or other reasonable security, 196
which line of credit may be drawn on only to pay for the 197
deductible portion of insured construction or reconstruct ion 198
after a hurricane loss. The Florida Hurricane Catastrophe Fund 199
shall negotiate agreements creating a financing consortium to 200
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 9 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
serve as an additional source of lines of credit to secure 201
deductibles. Any licensed insurance agent may act as the agent 202
of such consortium. 203
3. Any person qualified to act as a trustee for any 204
purpose may issue a certificate of security secured by a pledge 205
of assets, with the restriction that the assets may be drawn on 206
only to pay for the deductible portion of insured construct ion 207
or reconstruction after a hurricane loss. 208
4. Any insurer, including any admitted insurer or any 209
surplus lines insurer, may issue a certificate of security after 210
issuing the applicant a policy of supplemental insurance that 211
will pay for 100 percent of the deductible portion of insured 212
construction or reconstruction after a hurricane loss. 213
5. Any other method approved by the office upon finding 214
that such other method provides a similar level of security as 215
the methods specified in this paragraph and t hat such other 216
method has no negative impact on residential property insurance 217
catastrophic capacity. The legislative intent of this 218
subparagraph is to provide the flexibility needed to achieve the 219
public policy of expanding property insurance capacity whi le 220
improving the affordability of property insurance. 221
Section 6. Section 626.9261, Florida Statutes, is created 222
to read: 223
626.9261 Liability of insureds; deductibles. —A surplus 224
lines insurer may issue a certificate of security after issuing 225
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 10 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
the applicant a policy of supplemental insurance that will pay 226
for 100 percent of the deductible portion of insured 227
construction or reconstruction after a hurricane loss. 228
Section 7. Subsection (9) of section 627.70131, Florida 229
Statutes, is amended to read: 230
627.70131 Insurer's duty to acknowledge communications 231
regarding claims; investigation. — 232
(9) This section also applies to surplus lines insurers 233
and surplus lines insurance authorized under ss. 626.913 -626.937 234
providing residential coverage. 235
Section 8. Section 626.9262, Florida Statutes, is created 236
to read: 237
626.9262 Insurer's duty to acknowledge communications 238
regarding residential property insurance claims; investigation. — 239
(1)(a) Upon an insurer's receipt of a communication with 240
respect to a residential property insurance claim, the insurer 241
shall, within 7 calendar days, review and acknowledge receipt of 242
such communication unless payment is made within that period of 243
time or unless the failure to acknowledge is caused by factors 244
beyond the control of the insurer. If the acknowledgment is not 245
in writing, a notification indicating acknowledgment shall be 246
made in the insurer's claim file and dated. A communication made 247
to or by a representative of an insurer with respect to a claim 248
constitutes communication to or by the insurer. 249
(b) As used in this subsection, the term "representative" 250
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 11 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
means any person to whom an insurer has granted authority or 251
responsibility to receive or make such communications with 252
respect to claims on behalf of the insurer. 253
(c) This subsection does not apply to claimants 254
represented by counsel beyond those communications necessary to 255
provide forms and instructions. 256
(2) Such acknowledgment must be responsive to the 257
communication. If the communication constitutes a notific ation 258
of a residential property insurance claim, unless the 259
acknowledgment reasonably advises the claimant that the claim 260
appears not to be covered by the insurer, the acknowledgment 261
must provide necessary claim forms, and instructions, including 262
an appropriate telephone number. 263
(3)(a) Unless otherwise provided by the policy of 264
insurance or by law, within 7 days after an insurer receives 265
proof-of-loss statements, the insurer shall begin such 266
investigation as is reasonably necessary unless the failure to 267
begin such investigation is caused by factors beyond the control 268
of the insurer. 269
(b) If such investigation involves a physical inspection 270
of the property, the licensed adjuster assigned by the insurer 271
must provide the policyholder with a printed or electr onic 272
document containing his or her name and state adjuster license 273
number. An insurer must conduct any such physical inspection 274
within 30 days after its receipt of the proof -of-loss 275
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 12 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
statements. 276
(c) Any subsequent communication with the policyholder 277
regarding the residential property insurance claim must also 278
include the name and license number of the adjuster 279
communicating about the claim. Communication of the adjuster's 280
name and license number may be included with other information 281
provided to the polic yholder. 282
(d) An insurer may use electronic methods to investigate 283
the loss. Such electronic methods may include any method that 284
provides the insurer with clear, color pictures or video 285
documenting the loss, including, but not limited to, electronic 286
photographs or video recordings of the loss; video conferencing 287
between the adjuster and the policyholder which includes video 288
recording of the loss; and video recordings or photographs of 289
the loss using a drone, driverless vehicle, or other machine 290
that can move independently or through remote control. The 291
insurer also may allow the policyholder to use such methods to 292
assist in the investigation of the loss. An insurer may void the 293
insurance policy if the policyholder or any other person at the 294
direction of the policyholder, with intent to injure, defraud, 295
or deceive any insurer, commits insurance fraud by providing 296
false, incomplete, or misleading information concerning any fact 297
or thing material to a claim using electronic methods. The use 298
of electronic method s to investigate the loss does not prohibit 299
an insurer from assigning a licensed adjuster to physically 300
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 13 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
inspect the property. 301
(e) The insurer must send the policyholder a copy of any 302
detailed estimate of the amount of the loss within 7 days after 303
the estimate is generated by an insurer's adjuster. This 304
paragraph does not require that an insurer create a detailed 305
estimate of the amount of the loss if such estimate is not 306
reasonably necessary as part of the claim investigation. 307
(4) An insurer shall mainta in: 308
(a) A record or log of each adjuster who communicates with 309
the policyholder as provided in paragraphs (3)(b) and (c) and 310
provide a list of such adjusters to the insured, office, or 311
department upon request. 312
(b) Claim records, including dates, of all of the 313
following: 314
1. Any claim-related communication made between the 315
insurer and the policyholder or the policyholder's 316
representative. 317
2. The insurer's receipt of the policyholder's proof -of-318
loss statement. 319
3. Any claim-related request for informa tion made by the 320
insurer to the policyholder or the policyholder's 321
representative. 322
4. Any claim-related inspections of the property made by 323
the insurer, including physical inspections and inspections made 324
by electronic means. 325
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 14 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
5. Any detailed estimate o f the amount of the loss 326
generated by the insurer's adjuster. 327
6. The beginning and end of any tolling period provided 328
for in subsection (8). 329
7. The insurer's payment or denial of the claim. 330
(5) For purposes of this section, the term: 331
(a) "Factors beyond the control of the insurer" means: 332
1. Any of the following events that is the basis for the 333
office issuing an order finding that such event renders all or 334
specified residential property insurers reasonably unable to 335
meet the requirements of this se ction in specified locations and 336
ordering that such insurer or insurers may have additional time 337
as specified by the office to comply with the requirements of 338
this section: a state of emergency declared by the Governor 339
under s. 252.36, a breach of security that must be reported 340
under s. 501.171(3), or an information technology issue. The 341
office may not extend the period for payment or denial of a 342
claim for more than 30 additional days. 343
2. Actions by the policyholder or the policyholder's 344
representative which constitute fraud, lack of cooperation, or 345
intentional misrepresentation regarding the claim for which 346
benefits are owed when such actions reasonably prevent the 347
insurer from complying with any requirement of this section. 348
(b) "Insurer" means an eligi ble surplus lines insurer that 349
issues residential property policies. 350
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 15 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
(6)(a) When providing a preliminary or partial estimate of 351
damage regarding a residential property insurance claim, an 352
insurer shall include with the estimate the following statement 353
printed in at least 12 -point bold, uppercase type: THIS ESTIMATE 354
REPRESENTS OUR CURRENT EVALUATION OF THE COVERED DAMAGES TO YOUR 355
INSURED PROPERTY AND MAY BE REVISED AS WE CONTINUE TO EVALUATE 356
YOUR CLAIM. IF YOU HAVE QUESTIONS, CONCERNS, OR ADDITIONAL 357
INFORMATION REGARDING YOUR CLAIM, WE ENCOURAGE YOU TO CONTACT 358
US. 359
(b) When providing a payment on a claim which is not the 360
full and final payment for the claim, an insurer shall include 361
with the payment the following statement printed in at least 12 -362
point bold, uppercase type: WE ARE CONTINUING TO EVALUATE YOUR 363
CLAIM INVOLVING YOUR INSURED PROPERTY AND MAY ISSUE ADDITIONAL 364
PAYMENTS. IF YOU HAVE QUESTIONS, CONCERNS, OR ADDITIONAL 365
INFORMATION REGARDING YOUR CLAIM, WE ENCOURAGE YOU TO CONTACT 366
US. 367
(7)(a) Within 60 days after an insurer receives notice of 368
an initial, reopened, or supplemental property insurance claim 369
from a policyholder, the insurer shall pay or deny such claim or 370
a portion of the claim unless the failure to pay is caused by 371
factors beyond the cont rol of the insurer. The insurer shall 372
provide a reasonable explanation in writing to the policyholder 373
of the basis in the insurance policy, in relation to the facts 374
or applicable law, for the payment, denial, or partial denial of 375
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 16 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
a claim. If the insurer's claim payment is less than specified 376
in any insurer's detailed estimate of the amount of the loss, 377
the insurer must provide a reasonable explanation in writing of 378
the difference to the policyholder. Any payment of an initial or 379
supplemental claim or portio n of such claim made 60 days after 380
the insurer receives notice of the claim, or made after the 381
expiration of any additional timeframe provided to pay or deny a 382
claim or a portion of a claim made pursuant to an order of the 383
office finding factors beyond the control of the insurer, 384
whichever is later, bears interest at the rate set forth in s. 385
55.03. Interest begins to accrue from the date the insurer 386
receives notice of the claim. The provisions of this subsection 387
may not be waived, voided, or nullified by th e terms of the 388
insurance policy. If there is a right to prejudgment interest, 389
the insured must select whether to receive prejudgment interest 390
or interest under this subsection. Interest is payable when the 391
claim or portion of the claim is paid. Failure to comply with 392
this subsection constitutes a violation of this code. However, 393
failure to comply with this subsection does not form the sole 394
basis for a private cause of action. 395
(b) Notwithstanding subsection (5), for purposes of this 396
subsection, the term "c laim" means a claim under an insurance 397
policy providing residential coverage as defined in s. 398
627.4025(1). 399
(c) This subsection does not apply to claims under an 400
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 17 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
insurance policy covering structures or contents in more than 401
one state. 402
(8) The requirements of this section are tolled: 403
(a) During the pendency of any mediation proceeding under 404
s. 627.7015 or any alternative dispute resolution proceeding 405
provided for in the insurance contract. The tolling period ends 406
upon the end of the mediation or alternative dispute resolution 407
proceeding. 408
(b) Upon the failure of a policyholder or a representative 409
of the policyholder to provide material claims information 410
requested by the insurer within 10 days after the request was 411
received. The tolling period en ds upon the insurer's receipt of 412
the requested information. Tolling under this paragraph applies 413
only to requests sent by the insurer to the policyholder or a 414
representative of the policyholder at least 15 days before the 415
insurer is required to pay or deny the claim or a portion of the 416
claim under subsection (7). 417
Section 9. Subsection (2) of section 627.70132, Florida 418
Statutes, is amended to read: 419
627.70132 Notice of property insurance claim. — 420
(2) A claim or reopened claim, but not a supplemental 421
claim, under an insurance policy that provides property 422
insurance, as defined in s. 624.604, including a property 423
insurance policy issued by an eligible surplus lines insurer, 424
for loss or damage caused by any peril is barred unless notice 425
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 18 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
of the claim was given to the insurer in accordance with the 426
terms of the policy within 1 year after the date of loss. A 427
supplemental claim is barred unless notice of the supplemental 428
claim was given to the insurer in accordance with the terms of 429
the policy within 18 months after the date of loss. The time 430
limitations of this subsection are tolled during any term of 431
deployment to a combat zone or combat support posting which 432
materially affects the ability of a named insured who is a 433
servicemember as defined in s. 250.01 to fi le a claim, 434
supplemental claim, or reopened claim. 435
Section 10. Section 626.9263, Florida Statutes, is created 436
to read: 437
626.9263 Notice of property insurance claim. — 438
(1) As used in this section, the term: 439
(a) "Reopened claim" means a claim that an insurer has 440
previously closed, but that has been reopened upon an insured's 441
request for additional costs for loss or damage previously 442
disclosed to the insurer. 443
(b) "Supplemental claim" means a claim for additional loss 444
or damage from the same peril whi ch the insurer has previously 445
adjusted or for which costs have been incurred while completing 446
repairs or replacement pursuant to an open claim for which 447
timely notice was previously provided to the insurer. 448
(2) A claim or reopened claim, but not a supple mental 449
claim, under an insurance policy that provides property 450
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 19 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
insurance, as defined in s. 624.604, for loss or damage caused 451
by any peril is barred unless notice of the claim was given to 452
the insurer in accordance with the terms of the policy within 1 453
year after the date of loss. A supplemental claim is barred 454
unless notice of the supplemental claim was given to the insurer 455
in accordance with the terms of the policy within 18 months 456
after the date of loss. The time limitations of this subsection 457
are tolled during any term of deployment to a combat zone or 458
combat support posting which materially affects the ability of a 459
named insured who is a servicemember as defined in s. 250.01 to 460
file a claim, supplemental claim, or reopened claim. 461
(3) For claims result ing from hurricanes, tornadoes, 462
windstorms, severe rain, or other weather -related events, the 463
date of loss is the date that the hurricane made landfall or the 464
tornado, windstorm, severe rain, or other weather -related event 465
is verified by the National Ocean ic and Atmospheric 466
Administration. 467
(4) This section does not affect any applicable limitation 468
on civil actions provided in s. 95.11 for claims, supplemental 469
claims, or reopened claims timely filed under this section. 470
Section 11. Subsection (1) of section 627.70152, Florida 471
Statutes, is amended to read: 472
627.70152 Suits arising under a property insurance 473
policy.— 474
(1) APPLICATION.—This section applies exclusively to all 475
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 20 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
suits arising under a residential or commercial property 476
insurance policy, including a residential or commercial property 477
insurance policy issued by an eligible surplus lines insurer . 478
Section 12. Section 626.9264, Florida Statutes, is created 479
to read: 480
626.9264 Suits arising under a property insurance policy. — 481
(1) APPLICATION.—This section applies exclusively to all 482
suits arising under a residential or commercial property 483
insurance policy. 484
(2) DEFINITIONS.—As used in this section, the term: 485
(a) "Claimant" means an insured who is filing suit under a 486
residential or commercia l property insurance policy. 487
(b) "Disputed amount" means the difference between the 488
claimant's presuit settlement demand, not including attorney 489
fees and costs listed in the demand, and the insurer's presuit 490
settlement offer, not including attorney fees and costs, if part 491
of the offer. 492
(c) "Presuit settlement demand" means the demand made by 493
the claimant in the written notice of intent to initiate 494
litigation as required by paragraph (3)(a). The demand must 495
include the amount of reasonable and necessary attorney fees and 496
costs incurred by the claimant, to be calculated by multiplying 497
the number of hours actually worked on the claim by the 498
claimant's attorney as of the date of the notice by a reasonable 499
hourly rate. 500
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 21 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
(d) "Presuit settlement offer" means t he offer made by the 501
insurer in its written response to the notice specified in 502
subsection (3). 503
(3) NOTICE.— 504
(a) As a condition precedent to filing a suit under a 505
property insurance policy, a claimant must provide the 506
department with written notice of intent to initiate litigation 507
on a form provided by the department. Such notice must be given 508
at least 10 business days before filing suit under the policy, 509
but may not be given before the insurer has made a determination 510
of coverage under s. 627.70131. No tice to the insurer must be 511
provided by the department to the e -mail address designated by 512
the insurer under s. 624.422. The notice must state with 513
specificity all of the following information: 514
1. That the notice is provided pursuant to this section. 515
2. The alleged acts or omissions of the insurer giving 516
rise to the suit, which may include a denial of coverage. 517
3. If provided by an attorney or other representative, 518
that a copy of the notice was provided to the claimant. 519
4. If the notice is provided following a denial of 520
coverage, an estimate of damages, if known. 521
5. If the notice is provided following acts or omissions 522
by the insurer other than denial of coverage, both of the 523
following: 524
a. The presuit settlement demand, which must itemize the 525
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 22 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
damages, attorney fees, and costs. 526
b. The disputed amount. 527
528
Documentation to support the information provided in this 529
paragraph may be provided along with the notice to the insurer. 530
(b) A claimant must serve a notice of intent to initiate 531
litigation within the time limits provided in s. 95.11. However, 532
the notice is not required if the suit is a counterclaim. 533
Service of a notice tolls the time limits provided in s. 95.11 534
for 10 business days if such time limits will expire before the 535
end of the 10-day notice period. 536
(4) INSURER DUTIES. —An insurer must have a procedure for 537
the prompt investigation, review, and evaluation of the dispute 538
stated in the notice and must investigate each claim contained 539
in the notice in accordance with the Florida Insurance Code . An 540
insurer must respond in writing within 10 business days after 541
receiving the notice specified in subsection (3). The insurer 542
must provide the response to the claimant by e -mail if the 543
insured has designated an e -mail address in the notice. 544
(a) If an insurer is responding to a notice served on the 545
insurer following a denial of coverage by the insurer, the 546
insurer must respond by: 547
1. Accepting coverage; 548
2. Continuing to deny coverage; or 549
3. Asserting the right to reinspect the damaged property. 550
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 23 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
If the insurer responds by asserting the right to reinspect the 551
damaged property, it has 14 business days after the response 552
asserting that right to reinspect the property to accept or 553
continue to deny coverage. The time limits provided in s. 95.11 554
are tolled during the reinspection period if such time limits 555
expire before the end of the reinspection period. If the insurer 556
continues to deny coverage, the claimant may file suit without 557
providing additional notice to the insurer. 558
(b) If an insurer is respondi ng to a notice provided to 559
the insurer alleging an act or omission by the insurer other 560
than a denial of coverage, the insurer must respond by making a 561
settlement offer or requiring the claimant to participate in 562
appraisal or another method of alternative dispute resolution. 563
The time limits provided in s. 95.11 are tolled as long as 564
appraisal or other alternative dispute resolution is ongoing if 565
such time limits expire during the appraisal process or dispute 566
resolution process. If the appraisal or alternati ve dispute 567
resolution has not been concluded within 90 days after the 568
expiration of the 10 -day notice of intent to initiate litigation 569
specified in subsection (3), the claimant or claimant's attorney 570
may immediately file suit without providing the insurer 571
additional notice. 572
(5) DISMISSAL OF SUIT. —A court must dismiss without 573
prejudice any claimant's suit relating to a claim for which a 574
notice of intent to initiate litigation was not given as 575
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 24 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
required by this section or if such suit is commenced before the 576
expiration of any time period provided under subsection (4), as 577
applicable. 578
(6) ADMISSIBILITY OF NOTICE AND RESPONSE. —The notice 579
provided pursuant to subsection (3) and, if applicable, the 580
documentation to support the information provided in the notice: 581
(a) Are not admissible as evidence in any proceeding. 582
(b) Do not relieve any obligation that an insured or 583
assignee has to give notice under any other provision of law. 584
(7) TOLLING.—If a claim is not resolved during the presuit 585
notice process and if the time limits provided in s. 95.11 586
expire in the 30 days following the conclusion of the presuit 587
notice process, such time limits are tolled for 30 days. 588
Section 13. Section 626.9265, Florida Statutes, is created 589
to read: 590
626.9265 Assignment agree ments.—A policyholder may not 591
assign, in whole or in part, any post -loss insurance benefit 592
under any residential property insurance policy or under any 593
commercial property insurance policy, as defined in s. 594
627.0625(1)(a). An attempt to assign post -loss property 595
insurance benefits under such a policy is void, invalid, and 596
unenforceable. 597
Section 14. Section 626.9266, Florida Statutes, is created 598
to read: 599
626.9266 Nonjoinder of insurers. — 600
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 25 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
(1) It shall be a condition precedent to the accrual or 601
maintenance of a cause of action against a liability insurer by 602
a person who is not an insured under the terms of the liability 603
insurance contract that such person must first obtain a 604
settlement or verdict against a person who is an insured under 605
the terms of such policy for a cause of action which is covered 606
by such policy. 607
(2) Notwithstanding subsection (1), any insurer who pays 608
any taxable costs or attorney fees that would be recoverable by 609
the insured but for the fact that such costs or fees were paid 610
by the insurer shall be considered a party for the purpose of 611
recovering such fees or costs. A person who is not an insured 612
under the terms of a liability insurance policy may not have any 613
interest in such policy, either as a third -party beneficiary or 614
otherwise, before first obtaining a settlement or verdict 615
against a person who is an insured under the terms of such 616
policy for a cause of action which is covered by such policy. 617
(3) Insurers are affirmatively granted the substantive 618
right to insert in liability insurance policies contractual 619
provisions that preclude persons who are not designated as 620
insureds in such policies from joining a liability insurer as a 621
party defendant with its insured before the rendition of a 622
verdict. The contractual provisions authori zed in this 623
subsection shall be fully enforceable. 624
(4) When a judgment is entered or a settlement is reached 625
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 26 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
during the pendency of litigation, a liability insurer may be 626
joined as a party defendant for the purposes of entering final 627
judgment or enforcin g the settlement by the motion of any party, 628
unless the insurer denied coverage under s. 627.426(2) or 629
defended under a reservation of rights pursuant to s. 630
627.426(2). A copy of the motion to join the insurer shall be 631
served on the insurer by certified ma il. If a judgment is 632
reversed or remanded on appeal, the insurer's presence may not 633
be disclosed to the jury in a subsequent trial. 634
Section 15. Paragraph (b) of subsection (1) of section 635
627.952, Florida Statutes, is amended to read: 636
627.952 Risk retention and purchasing group agents. — 637
(1) Any person offering, soliciting, selling, purchasing, 638
administering, or otherwise servicing insurance contracts, 639
certificates, or agreements for any purchasing group or risk 640
retention group to any resident of t his state, either directly 641
or indirectly, by the use of mail, advertising, or other means 642
of communication, shall obtain a license and appointment to act 643
as a resident general lines agent, if a resident of this state, 644
or a nonresident general lines agent i f not a resident. Any such 645
person shall be subject to all requirements of the Florida 646
Insurance Code. 647
(b) Any person required to be licensed and appointed under 648
this subsection, in order to place business through Florida 649
eligible surplus lines carriers, must, if a resident of this 650
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 27 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
state, be licensed and appointed as a surplus lines agent. If 651
not a resident of this state, such person must be licensed and 652
appointed as a surplus lines agent in her or his state of 653
residence and be licensed and appointed as a nonresident surplus 654
lines agent in this state. 655
Section 16. Section 626.931, Florida Statutes, is am ended 656
to read: 657
626.931 Agent affidavit and Insurer reporting 658
requirements.— 659
(1) Each surplus lines agent that has transacted business 660
during a calendar quarter shall on or before the 45th day 661
following the calendar quarter file with the Florida Surplus 662
Lines Service Office an affidavit, on forms as prescribed and 663
furnished by the Florida Surplus Lines Service Office, stating 664
that all surplus lines insurance transacted by him or her during 665
such calendar quarter has been submitted to the Florida Surplus 666
Lines Service Office as required. 667
(2) The affidavit of the surplus lines agent shall include 668
efforts made to place coverages with authorized insurers and the 669
results thereof. 670
(1)(3) Each foreign insurer accepting premiums shall, on 671
or before the end of the month following each calendar quarter, 672
file with the Florida Surplus Lines Service Office a verified 673
report of all surplus lines insurance transacted by such insurer 674
for insurance risks located in this state during such calendar 675
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 28 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
quarter. 676
(2)(4) Each alien insurer accepting premiums shall, on or 677
before June 30 of each year, file with the Florida Surplus Lines 678
Service Office a verified report of all surplus lines insurance 679
transacted by such insurer for insurance risks located in this 680
state during the preceding calendar year. 681
(3)(5) The department may waive the filing requirements 682
described in subsections (1) (3) and (2) (4). 683
(4)(6) Each insurer's report and supporting information 684
shall be in a computer -readable format as determined by the 685
Florida Surplus Lines Service Office or shall be submitted on 686
forms prescribed by the Florida Surplus Lines Service Office and 687
shall show for each applicable agent: 688
(a) A listing of all policies, certificates, cover notes, 689
or other forms of confirmation of insuran ce coverage or any 690
substitutions thereof or endorsements thereto and the 691
identifying number; and 692
(b) Any additional information required by the department 693
or Florida Surplus Lines Service Office. 694
Section 17. Paragraph (a) of subsection (2) and subsec tion 695
(6) of section 626.932, Florida Statutes, are amended to read: 696
626.932 Surplus lines tax. — 697
(2)(a) The surplus lines agent shall make payable to the 698
department the tax related to each calendar quarter's business 699
as reported to the Florida Surplus L ines Service Office, and 700
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 29 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
remit the tax to the Florida Surplus Lines Service Office at the 701
same time as the fee required provided for the filing of the 702
quarterly affidavit, under s. 626.9325 s. 626.931. The Florida 703
Surplus Lines Service Office shall forward to the department the 704
taxes and any interest collected pursuant to paragraph (b) , 705
within 10 days after of receipt. 706
(6) For the purposes of this section, the term "premium" 707
means the consideration for insurance by whatever name called 708
and includes any assessment, or any membership, policy, survey, 709
inspection, service, or similar fee or charge in consideration 710
for an insurance contract, which items are deemed to be a part 711
of the premium. The per -policy fee authorized by s. 626.916(2) 712
s. 626.916(4) is specifically included within the meaning of the 713
term "premium." However, the service fee imposed pursuant to s. 714
626.9325 is excluded from the meaning of the term "premium." 715
Section 18. Paragraph (c) of subsection (6) of section 716
627.351, Florida Statutes, is amended to read: 717
627.351 Insurance risk apportionment plans. — 718
(6) CITIZENS PROPERTY INSURANCE CORPORATION. — 719
(c) The corporation's plan of operation: 720
1. Must provide for adoption of residential property and 721
casualty insurance policy forms and comme rcial residential and 722
nonresidential property insurance forms, which must be approved 723
by the office before use. The corporation shall adopt the 724
following policy forms: 725
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 30 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
a. Standard personal lines policy forms that are 726
comprehensive multiperil policies pro viding full coverage of a 727
residential property equivalent to the coverage provided in the 728
private insurance market under an HO -3, HO-4, or HO-6 policy. 729
b. Basic personal lines policy forms that are policies 730
similar to an HO-8 policy or a dwelling fire po licy that provide 731
coverage meeting the requirements of the secondary mortgage 732
market, but which is more limited than the coverage under a 733
standard policy. 734
c. Commercial lines residential and nonresidential policy 735
forms that are generally similar to the b asic perils of full 736
coverage obtainable for commercial residential structures and 737
commercial nonresidential structures in the admitted voluntary 738
market. 739
d. Personal lines and commercial lines residential 740
property insurance forms that cover the peril of w ind only. The 741
forms are applicable only to residential properties located in 742
areas eligible for coverage by the Florida Windstorm 743
Underwriting Association, as those areas were defined on January 744
1, 2002. 745
e. Commercial lines nonresidential property insura nce 746
forms that cover the peril of wind only. The forms are 747
applicable only to nonresidential properties located in areas 748
eligible for coverage by the Florida Windstorm Underwriting 749
Association, as those areas were defined on January 1, 2002. 750
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 31 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
f. The corporation may adopt variations of the policy 751
forms listed in sub-subparagraphs a.-e. which contain more 752
restrictive coverage. 753
g. The corporation shall offer a basic personal lines 754
policy similar to an HO -8 policy with dwelling repair based on 755
common construction materials and methods. 756
2. Must provide that the corporation adopt a program in 757
which the corporation and authorized insurers enter into quota 758
share primary insurance agreements for hurricane coverage, as 759
defined in s. 627.4025(2)(a), for eligible r isks, and adopt 760
property insurance forms for eligible risks which cover the 761
peril of wind only. 762
a. As used in this subsection, the term: 763
(I) "Approved surplus lines insurer" means an eligible 764
surplus lines insurer that: 765
(A) Has a financial strength rating of "A-" or higher from 766
A.M. Best Company; 767
(B) Has a personal lines residential risk program that is 768
managed by a Florida resident surplus lines broker; 769
(C) Applies to the office to participate in the take -out 770
process to offer coverage to applica nts for new coverage from 771
the corporation or current policyholders of the corporation 772
through a take-out plan approved by the office; 773
(D) Does not, as part of any take -out plan approved by the 774
office, offer coverage on any personal lines residential risk 775
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 32 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
that is a primary residence or has a homestead exemption under 776
chapter 196; 777
(E) Files rates for review as part of a take -out plan with 778
the office. The office shall review whether the premium is more 779
than 20 percent greater than the premium for comparabl e coverage 780
from the corporation; and 781
(F) Provides data to the office related to coverage and 782
rates in a format promulgated by the commission. 783
(II) "Eligible risks" means personal lines residential and 784
commercial lines residential risks that meet the un derwriting 785
criteria of the corporation and are located in areas that were 786
eligible for coverage by the Florida Windstorm Underwriting 787
Association on January 1, 2002. 788
(III) "Primary residence" means the dwelling that is the 789
policyholder's primary home or is a rental property that is the 790
primary home of the tenant, and which the policyholder or tenant 791
occupies for more than 9 months of each year. 792
(IV) "Quota share primary insurance" means an arrangement 793
in which the primary hurricane coverage of an eligib le risk is 794
provided in specified percentages by the corporation and an 795
authorized insurer. The corporation and authorized insurer are 796
each solely responsible for a specified percentage of hurricane 797
coverage of an eligible risk as set forth in a quota share 798
primary insurance agreement between the corporation and an 799
authorized insurer and the insurance contract. The 800
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 33 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
responsibility of the corporation or authorized insurer to pay 801
its specified percentage of hurricane losses of an eligible 802
risk, as set forth in the agreement, may not be altered by the 803
inability of the other party to pay its specified percentage of 804
losses. Eligible risks that are provided hurricane coverage 805
through a quota share primary insurance arrangement must be 806
provided policy forms that set forth the obligations of the 807
corporation and authorized insurer under the arrangement, 808
clearly specify the percentages of quota share primary insurance 809
provided by the corporation and authorized insurer, and 810
conspicuously and clearly state that the authori zed insurer and 811
the corporation may not be held responsible beyond their 812
specified percentage of coverage of hurricane losses. 813
b. The corporation may enter into quota share primary 814
insurance agreements with authorized insurers at corporation 815
coverage levels of 90 percent and 50 percent. 816
c. If the corporation determines that additional coverage 817
levels are necessary to maximize participation in quota share 818
primary insurance agreements by authorized insurers, the 819
corporation may establish additional covera ge levels. However, 820
the corporation's quota share primary insurance coverage level 821
may not exceed 90 percent. 822
d. Any quota share primary insurance agreement entered 823
into between an authorized insurer and the corporation must 824
provide for a uniform specifi ed percentage of coverage of 825
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 34 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
hurricane losses, by county or territory as set forth by the 826
corporation board, for all eligible risks of the authorized 827
insurer covered under the agreement. 828
e. Any quota share primary insurance agreement entered 829
into between an authorized insurer and the corporation is 830
subject to review and approval by the office. However, such 831
agreement shall be authorized only as to insurance contracts 832
entered into between an authorized insurer and an insured who is 833
already insured by the c orporation for wind coverage. 834
f. For all eligible risks covered under quota share 835
primary insurance agreements, the exposure and coverage levels 836
for both the corporation and authorized insurers shall be 837
reported by the corporation to the Florida Hurrican e Catastrophe 838
Fund. For all policies of eligible risks covered under such 839
agreements, the corporation and the authorized insurer must 840
maintain complete and accurate records for the purpose of 841
exposure and loss reimbursement audits as required by fund 842
rules. The corporation and the authorized insurer shall each 843
maintain duplicate copies of policy declaration pages and 844
supporting claims documents. 845
g. The corporation board shall establish in its plan of 846
operation standards for quota share agreements which en sure that 847
there is no discriminatory application among insurers as to the 848
terms of the agreements, pricing of the agreements, incentive 849
provisions if any, and consideration paid for servicing policies 850
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 35 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
or adjusting claims. 851
h. The quota share primary insur ance agreement between the 852
corporation and an authorized insurer must set forth the 853
specific terms under which coverage is provided, including, but 854
not limited to, the sale and servicing of policies issued under 855
the agreement by the insurance agent of the authorized insurer 856
producing the business, the reporting of information concerning 857
eligible risks, the payment of premium to the corporation, and 858
arrangements for the adjustment and payment of hurricane claims 859
incurred on eligible risks by the claims adjus ter and personnel 860
of the authorized insurer. Entering into a quota sharing 861
insurance agreement between the corporation and an authorized 862
insurer is voluntary and at the discretion of the authorized 863
insurer. 864
3. May provide that the corporation may employ or 865
otherwise contract with individuals or other entities to provide 866
administrative or professional services that may be appropriate 867
to effectuate the plan. The corporation may borrow funds by 868
issuing bonds or by incurring other indebtedness, and shall have 869
other powers reasonably necessary to effectuate the requirements 870
of this subsection, including, without limitation, the power to 871
issue bonds and incur other indebtedness in order to refinance 872
outstanding bonds or other indebtedness. The corporation may 873
seek judicial validation of its bonds or other indebtedness 874
under chapter 75. The corporation may issue bonds or incur other 875
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 36 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
indebtedness, or have bonds issued on its behalf by a unit of 876
local government pursuant to subparagraph (q)2. in the absence 877
of a hurricane or other weather -related event, upon a 878
determination by the corporation, subject to approval by the 879
office, that such action would enable it to efficiently meet the 880
financial obligations of the corporation and that such 881
financings are reasonably nec essary to effectuate the 882
requirements of this subsection. The corporation may take all 883
actions needed to facilitate tax -free status for such bonds or 884
indebtedness, including formation of trusts or other affiliated 885
entities. The corporation may pledge asses sments, projected 886
recoveries from the Florida Hurricane Catastrophe Fund, other 887
reinsurance recoverables, policyholder surcharges and other 888
surcharges, and other funds available to the corporation as 889
security for bonds or other indebtedness. In recognition of s. 890
10, Art. I of the State Constitution, prohibiting the impairment 891
of obligations of contracts, it is the intent of the Legislature 892
that no action be taken whose purpose is to impair any bond 893
indenture or financing agreement or any revenue source comm itted 894
by contract to such bond or other indebtedness. 895
4. Must require that the corporation operate subject to 896
the supervision and approval of a board of governors consisting 897
of nine individuals who are residents of this state and who are 898
from different geographical areas of the state, one of whom is 899
appointed by the Governor and serves solely to advocate on 900
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 37 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
behalf of the consumer. The appointment of a consumer 901
representative by the Governor is deemed to be within the scope 902
of the exemption provided in s. 112.313(7)(b) and is in addition 903
to the appointments authorized under sub -subparagraph a. 904
a. The Governor, the Chief Financial Officer, the 905
President of the Senate, and the Speaker of the House of 906
Representatives shall each appoint two members of the boa rd. At 907
least one of the two members appointed by each appointing 908
officer must have demonstrated expertise in insurance and be 909
deemed to be within the scope of the exemption provided in s. 910
112.313(7)(b). The Chief Financial Officer shall designate one 911
of the appointees as chair. All board members serve at the 912
pleasure of the appointing officer. All members of the board are 913
subject to removal at will by the officers who appointed them. 914
All board members, including the chair, must be appointed to 915
serve for 3-year terms beginning annually on a date designated 916
by the plan. However, for the first term beginning on or after 917
July 1, 2009, each appointing officer shall appoint one member 918
of the board for a 2 -year term and one member for a 3 -year term. 919
A board vacancy shall be filled for the unexpired term by the 920
appointing officer. The Chief Financial Officer shall appoint a 921
technical advisory group to provide information and advice to 922
the board in connection with the board's duties under this 923
subsection. The executiv e director and senior managers of the 924
corporation shall be engaged by the board and serve at the 925
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 38 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
pleasure of the board. Any executive director appointed on or 926
after July 1, 2006, is subject to confirmation by the Senate. 927
The executive director is responsib le for employing other staff 928
as the corporation may require, subject to review and 929
concurrence by the board. 930
b. The board shall create a Market Accountability Advisory 931
Committee to assist the corporation in developing awareness of 932
its rates and its custo mer and agent service levels in 933
relationship to the voluntary market insurers writing similar 934
coverage. 935
(I) The members of the advisory committee consist of the 936
following 11 persons, one of whom must be elected chair by the 937
members of the committee: four representatives, one appointed by 938
the Florida Association of Insurance Agents, one by the Florida 939
Association of Insurance and Financial Advisors, one by the 940
Professional Insurance Agents of Florida, and one by the Latin 941
American Association of Insurance Agencies; three 942
representatives appointed by the insurers with the three highest 943
voluntary market share of residential property insurance 944
business in the state; one representative from the Office of 945
Insurance Regulation; one consumer appointed by the board who is 946
insured by the corporation at the time of appointment to the 947
committee; one representative appointed by the Florida 948
Association of Realtors; and one representative appointed by the 949
Florida Bankers Association. All members shall be appointed to 950
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 39 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
3-year terms and may serve for consecutive terms. 951
(II) The committee shall report to the corporation at each 952
board meeting on insurance market issues which may include rates 953
and rate competition with the voluntary market; service, 954
including policy issuance, claims processing, and general 955
responsiveness to policyholders, applicants, and agents; and 956
matters relating to depopulation. 957
5. Must provide a procedure for determining the 958
eligibility of a risk for coverage, as follows: 959
a. Subject to s. 627.3517, wit h respect to personal lines 960
residential risks that are primary residences, if the risk is 961
offered coverage from an authorized insurer at the insurer's 962
approved rate under a standard policy including wind coverage 963
or, if consistent with the insurer's underw riting rules as filed 964
with the office, a basic policy including wind coverage, for a 965
new application to the corporation for coverage, the risk is not 966
eligible for any policy issued by the corporation unless the 967
premium for coverage from the authorized insu rer is more than 20 968
percent greater than the premium for comparable coverage from 969
the corporation. Whenever an offer of coverage for a personal 970
lines residential risk that is a primary residence is received 971
for a policyholder of the corporation at renewal from an 972
authorized insurer, if the offer is equal to or less than the 973
corporation's renewal premium for comparable coverage, the risk 974
is not eligible for coverage with the corporation for policies 975
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 40 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
that renew before April 1, 2023; for policies that renew on or 976
after that date, the risk is not eligible for coverage with the 977
corporation unless the premium for coverage from the authorized 978
insurer is more than 20 percent greater than the corporation's 979
renewal premium for comparable coverage. If the risk is not a ble 980
to obtain such offer, the risk is eligible for a standard policy 981
including wind coverage or a basic policy including wind 982
coverage issued by the corporation; however, if the risk could 983
not be insured under a standard policy including wind coverage 984
regardless of market conditions, the risk is eligible for a 985
basic policy including wind coverage unless rejected under 986
subparagraph 8. The corporation shall determine the type of 987
policy to be provided on the basis of objective standards 988
specified in the underw riting manual and based on generally 989
accepted underwriting practices. A policyholder removed from the 990
corporation through an assumption agreement does not remain 991
eligible for coverage from the corporation after the end of the 992
policy term. However, any poli cy removed from the corporation 993
through an assumption agreement remains on the corporation's 994
policy forms through the end of the policy term. This sub -995
subparagraph applies only to risks that are primary residences. 996
(I) If the risk accepts an offer of cov erage through the 997
market assistance plan or through a mechanism established by the 998
corporation other than a plan established by s. 627.3518, before 999
a policy is issued to the risk by the corporation or during the 1000
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 41 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
first 30 days of coverage by the corporation , and the producing 1001
agent who submitted the application to the plan or to the 1002
corporation is not currently appointed by the insurer, the 1003
insurer shall: 1004
(A) Pay to the producing agent of record of the policy for 1005
the first year, an amount that is the great er of the insurer's 1006
usual and customary commission for the type of policy written or 1007
a fee equal to the usual and customary commission of the 1008
corporation; or 1009
(B) Offer to allow the producing agent of record of the 1010
policy to continue servicing the policy for at least 1 year and 1011
offer to pay the agent the greater of the insurer's or the 1012
corporation's usual and customary commission for the type of 1013
policy written. 1014
1015
If the producing agent is unwilling or unable to accept 1016
appointment, the new insurer shall pay the agent in accordance 1017
with sub-sub-sub-subparagraph (A). 1018
(II) If the corporation enters into a contractual 1019
agreement for a take -out plan, the producing agent of record of 1020
the corporation policy is entitled to retain any unearned 1021
commission on the polic y, and the insurer shall: 1022
(A) Pay to the producing agent of record, for the first 1023
year, an amount that is the greater of the insurer's usual and 1024
customary commission for the type of policy written or a fee 1025
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 42 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
equal to the usual and customary commission of t he corporation; 1026
or 1027
(B) Offer to allow the producing agent of record to 1028
continue servicing the policy for at least 1 year and offer to 1029
pay the agent the greater of the insurer's or the corporation's 1030
usual and customary commission for the type of policy wr itten. 1031
1032
If the producing agent is unwilling or unable to accept 1033
appointment, the new insurer shall pay the agent in accordance 1034
with sub-sub-sub-subparagraph (A). 1035
b. Subject to s. 627.3517, with respect to personal lines 1036
residential risks that are not pri mary residences, if the risk 1037
is offered coverage from an authorized insurer at the insurer's 1038
approved rate or from an approved surplus lines insurer at the 1039
rate approved by the office as part of such surplus lines 1040
insurer's take-out plan for a new applicat ion to the corporation 1041
for coverage, the risk is not eligible for any policy issued by 1042
the corporation unless the premium for coverage from the 1043
authorized insurer or approved surplus lines insurer is more 1044
than 20 percent greater than the premium for compar able coverage 1045
from the corporation. Whenever an offer of coverage for a 1046
personal lines residential risk that is not a primary residence 1047
is received for a policyholder of the corporation at renewal 1048
from an authorized insurer at the insurer's approved rate o r an 1049
approved surplus lines insurer at the rate approved by the 1050
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 43 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
office as part of such insurer's take -out plan, the risk is not 1051
eligible for coverage with the corporation unless the premium 1052
for coverage from the authorized insurer or approved surplus 1053
lines insurer is more than 20 percent greater than the 1054
corporation's renewal premium for comparable coverage for 1055
policies that renew on or after July 1, 2024. If the risk is not 1056
able to obtain such offer, the risk is eligible for a standard 1057
policy including win d coverage or a basic policy including wind 1058
coverage issued by the corporation. If the risk could not be 1059
insured under a standard policy including wind coverage 1060
regardless of market conditions, the risk is eligible for a 1061
basic policy including wind coverag e unless rejected under 1062
subparagraph 8. The corporation shall determine the type of 1063
policy to be provided on the basis of objective standards 1064
specified in the underwriting manual and based on generally 1065
accepted underwriting practices. A policyholder remove d from the 1066
corporation through an assumption agreement does not remain 1067
eligible for coverage from the corporation after the end of the 1068
policy term. However, any policy removed from the corporation 1069
through an assumption agreement remains on the corporation' s 1070
policy forms through the end of the policy term. 1071
(I) If the risk accepts an offer of coverage through the 1072
market assistance plan or through a mechanism established by the 1073
corporation other than a plan established by s. 627.3518, before 1074
a policy is issued to the risk by the corporation or during the 1075
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 44 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
first 30 days of coverage by the corporation, and the producing 1076
agent who submitted the application to the plan or to the 1077
corporation is not currently appointed by the insurer, the 1078
insurer must: 1079
(A) Pay to the producing agent of record of the policy, 1080
for the first year, an amount that is the greater of the 1081
insurer's usual and customary commission for the type of policy 1082
written or a fee equal to the usual and customary commission of 1083
the corporation; or 1084
(B) Offer to allow the producing agent of record of the 1085
policy to continue servicing the policy for at least 1 year and 1086
offer to pay the agent the greater of the insurer's or the 1087
corporation's usual and customary commission for the type of 1088
policy written. 1089
1090
If the producing agent is unwilling or unable to accept 1091
appointment, the new insurer must pay the agent in accordance 1092
with sub-sub-sub-subparagraph (A). 1093
(II) If the corporation enters into a contractual 1094
agreement for a take -out plan, the producing agent of record of 1095
the corporation policy is entitled to retain any unearned 1096
commission on the policy, and the insurer must: 1097
(A) Pay to the producing agent of record, for the first 1098
year, an amount that is the greater of the insurer's usual and 1099
customary commission for the type of policy written or a fee 1100
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 45 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
equal to the usual and customary commission of the corporation; 1101
or 1102
(B) Offer to allow the producing agent of record to 1103
continue servicing the policy for at least 1 year and offer to 1104
pay the agent the greater of t he insurer's or the corporation's 1105
usual and customary commission for the type of policy written. 1106
1107
If the producing agent is unwilling or unable to accept 1108
appointment, the new insurer shall pay the agent in accordance 1109
with sub-sub-sub-subparagraph (A). 1110
c. With respect to commercial lines residential risks, for 1111
a new application to the corporation for coverage, if the risk 1112
is offered coverage under a policy including wind coverage from 1113
an authorized insurer at its approved rate, the risk is not 1114
eligible for a policy issued by the corporation unless the 1115
premium for coverage from the authorized insurer is more than 20 1116
percent greater than the premium for comparable coverage from 1117
the corporation. Whenever an offer of coverage for a commercial 1118
lines residential risk is received for a policyholder of the 1119
corporation at renewal from an authorized insurer, the risk is 1120
not eligible for coverage with the corporation unless the 1121
premium for coverage from the authorized insurer is more than 20 1122
percent greater than the co rporation's renewal premium for 1123
comparable coverage. If the risk is not able to obtain any such 1124
offer, the risk is eligible for a policy including wind coverage 1125
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 46 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
issued by the corporation. A policyholder removed from the 1126
corporation through an assumption ag reement remains eligible for 1127
coverage from the corporation until the end of the policy term. 1128
However, any policy removed from the corporation through an 1129
assumption agreement remains on the corporation's policy forms 1130
through the end of the policy term. 1131
(I) If the risk accepts an offer of coverage through the 1132
market assistance plan or through a mechanism established by the 1133
corporation other than a plan established by s. 627.3518, before 1134
a policy is issued to the risk by the corporation or during the 1135
first 30 days of coverage by the corporation, and the producing 1136
agent who submitted the application to the plan or the 1137
corporation is not currently appointed by the insurer, the 1138
insurer shall: 1139
(A) Pay to the producing agent of record of the policy, 1140
for the first year, an amount that is the greater of the 1141
insurer's usual and customary commission for the type of policy 1142
written or a fee equal to the usual and customary commission of 1143
the corporation; or 1144
(B) Offer to allow the producing agent of record of the 1145
policy to continue servicing the policy for at least 1 year and 1146
offer to pay the agent the greater of the insurer's or the 1147
corporation's usual and customary commission for the type of 1148
policy written. 1149
1150
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 47 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
If the producing agent is unwilling or unable to accept 1151
appointment, the new insurer shall pay the agent in accordance 1152
with sub-sub-sub-subparagraph (A). 1153
(II) If the corporation enters into a contractual 1154
agreement for a take -out plan, the producing agent of record of 1155
the corporation policy is entitled to retain a ny unearned 1156
commission on the policy, and the insurer shall: 1157
(A) Pay to the producing agent of record, for the first 1158
year, an amount that is the greater of the insurer's usual and 1159
customary commission for the type of policy written or a fee 1160
equal to the usual and customary commission of the corporation; 1161
or 1162
(B) Offer to allow the producing agent of record to 1163
continue servicing the policy for at least 1 year and offer to 1164
pay the agent the greater of the insurer's or the corporation's 1165
usual and customary c ommission for the type of policy written. 1166
1167
If the producing agent is unwilling or unable to accept 1168
appointment, the new insurer shall pay the agent in accordance 1169
with sub-sub-sub-subparagraph (A). 1170
d. For purposes of determining comparable coverage under 1171
sub-subparagraphs a., b., and c., the comparison must be based 1172
on those forms and coverages that are reasonably comparable. The 1173
corporation may rely on a determination of comparable coverage 1174
and premium made by the producing agent who submits the 1175
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 48 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
application to the corporation, made in the agent's capacity as 1176
the corporation's agent. For purposes of comparing the premium 1177
for comparable coverage under sub -subparagraphs a., b., and c., 1178
premium includes any surcharge or assessment that is actually 1179
applied to such policy. A comparison may be made solely of the 1180
premium with respect to the main building or structure only on 1181
the following basis: the same Coverage A or other building 1182
limits; the same percentage hurricane deductible that applies on 1183
an annual basis or that applies to each hurricane for commercial 1184
residential property; the same percentage of ordinance and law 1185
coverage, if the same limit is offered by both the corporation 1186
and the authorized insurer or the approved surplus lines 1187
insurer; the same mitigati on credits, to the extent the same 1188
types of credits are offered both by the corporation and the 1189
authorized insurer or the approved surplus lines insurer; the 1190
same method for loss payment, such as replacement cost or actual 1191
cash value, if the same method is offered both by the 1192
corporation and the authorized insurer in accordance with 1193
underwriting rules; and any other form or coverage that is 1194
reasonably comparable as determined by the board. If an 1195
application is submitted to the corporation for wind -only 1196
coverage on a risk that is located in an area eligible for 1197
coverage by the Florida Windstorm Underwriting Association, as 1198
that area was defined on January 1, 2002, the premium for the 1199
corporation's wind-only policy plus the premium for the ex -wind 1200
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 49 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
policy that is offered by an authorized insurer to the applicant 1201
must be compared to the premium for multiperil coverage offered 1202
by an authorized insurer, subject to the standards for 1203
comparison specified in this subparagraph. If the corporation or 1204
the applicant requests from the authorized insurer or the 1205
approved surplus lines insurer a breakdown of the premium of the 1206
offer by types of coverage so that a comparison may be made by 1207
the corporation or its agent and the authorized insurer or the 1208
approved surplus lines ins urer refuses or is unable to provide 1209
such information, the corporation may treat the offer as not 1210
being an offer of coverage from an authorized insurer at the 1211
insurer's approved rate. 1212
6. Must include rules for classifications of risks and 1213
rates. 1214
7. Must provide that if premium and investment income for 1215
the Citizens account, which are attributable to a particular 1216
calendar year, are in excess of projected losses and expenses 1217
for the Citizens account attributable to that year, such excess 1218
shall be held in surplus in the Citizens account. Such surplus 1219
must be available to defray deficits in the Citizens account as 1220
to future years and used for that purpose before assessing 1221
assessable insurers and assessable insureds as to any calendar 1222
year. 1223
8. Must provide objective criteria and procedures to be 1224
uniformly applied to all applicants in determining whether an 1225
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 50 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
individual risk is so hazardous as to be uninsurable. In making 1226
this determination and in establishing the criteria and 1227
procedures, the following must be considered: 1228
a. Whether the likelihood of a loss for the individual 1229
risk is substantially higher than for other risks of the same 1230
class; and 1231
b. Whether the uncertainty associated with the individual 1232
risk is such that an appropriate premium cannot be determined. 1233
1234
The acceptance or rejection of a risk by the corporation shall 1235
be construed as the private placement of insurance, and the 1236
provisions of chapter 120 do not apply. 1237
9. Must provide that the corporation make its best efforts 1238
to procure catastrophe reinsurance at reasonable rates, to cover 1239
its projected 100-year probable maximum loss as determined by 1240
the board of governors. If catastrophe reinsurance is not 1241
available at reasonable rates, the corporation need not purchase 1242
it, but the corporation s hall include the costs of reinsurance 1243
to cover its projected 100 -year probable maximum loss in its 1244
rate calculations even if it does not purchase catastrophe 1245
reinsurance. 1246
10. The policies issued by the corporation Must provide in 1247
the corporation policies that if the corporation or the market 1248
assistance plan obtains an offer from an authorized insurer to 1249
cover the risk at its approved rates, the risk is no longer 1250
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 51 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
eligible for renewal through the corporation, except as 1251
otherwise provided in this subsection. 1252
11. Corporation policies and applications Must include in 1253
the corporation policies and applications a notice that the 1254
corporation policy could, under this section, be replaced with a 1255
policy issued by an authorized insurer which does not provide 1256
coverage identical to the coverage provided by the corporation. 1257
The notice must also specify that acceptance of corporation 1258
coverage creates a conclusive presumption that the applicant or 1259
policyholder is aware of this potential. 1260
12. May establish, subject to app roval by the office, 1261
different eligibility requirements and operational procedures 1262
for any line or type of coverage for any specified county or 1263
area if the board determines that such changes are justified due 1264
to the voluntary market being sufficiently stab le and 1265
competitive in such area or for such line or type of coverage 1266
and that consumers who, in good faith, are unable to obtain 1267
insurance through the voluntary market through ordinary methods 1268
continue to have access to coverage from the corporation. If 1269
coverage is sought in connection with a real property transfer, 1270
the requirements and procedures may not provide an effective 1271
date of coverage later than the date of the closing of the 1272
transfer as established by the transferor, the transferee, and, 1273
if applicable, the lender. 1274
13. Must provide that the corporation appoint as its 1275
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 52 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
licensed agents only those agents who throughout such 1276
appointments also hold an appointment as defined in s. 626.015 1277
by at least three insurers who are authorized to write and are 1278
actually writing or renewing personal lines residential property 1279
coverage, commercial residential property coverage, or 1280
commercial nonresidential property coverage within the state. 1281
For purposes of agents writing or renewing commercial 1282
residential property cov erage or commercial nonresidential 1283
property coverage, an agent may satisfy the requirement for any 1284
one or more of the three direct appointments by providing to the 1285
corporation a signed attestation confirming that they have 1286
access through a broker to an aut horized insurer or eligible 1287
surplus lines insurer authorized to write and actually writing 1288
or renewing commercial residential property coverage or 1289
commercial nonresidential property coverage. 1290
14. Must provide a premium payment plan option to its 1291
policyholders which, at a minimum, allows for quarterly and 1292
semiannual payment of premiums. A monthly payment plan may, but 1293
is not required to, be offered. 1294
15. Must limit coverage on mobile homes or manufactured 1295
homes built before 1994 to actual cash value of th e dwelling 1296
rather than replacement costs of the dwelling. 1297
16. Must provide coverage for manufactured or mobile home 1298
dwellings. Such coverage must also include the following 1299
attached structures: 1300
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 53 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
a. Screened enclosures that are aluminum framed or 1301
screened enclosures that are not covered by the same or 1302
substantially the same materials as those of the primary 1303
dwelling; 1304
b. Carports that are aluminum or carports that are not 1305
covered by the same or substantially the same materials as those 1306
of the primary dwelling; and 1307
c. Patios that have a roof covering that is constructed of 1308
materials that are not the same or substantially the same 1309
materials as those of the primary dwelling. 1310
1311
The corporation shall make available a policy for mobile homes 1312
or manufactured homes for a minimum insured value of at least 1313
$3,000. 1314
17. May provide such limits of coverage as the board 1315
determines, consistent with the requirements of this subsection. 1316
18. May require commercial property to meet specified 1317
hurricane mitigation constru ction features as a condition of 1318
eligibility for coverage. 1319
19. Must provide that new or renewal policies issued by 1320
the corporation on or after January 1, 2012, which cover 1321
sinkhole loss do not include coverage for any loss to 1322
appurtenant structures, driv eways, sidewalks, decks, or patios 1323
that are directly or indirectly caused by sinkhole activity. The 1324
corporation shall exclude such coverage using a notice of 1325
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 54 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
coverage change, which may be included with the policy renewal, 1326
and not by issuance of a notice of nonrenewal of the excluded 1327
coverage upon renewal of the current policy. 1328
20.a. Must require that the agent obtain from an applicant 1329
for coverage from the corporation an acknowledgment signed by 1330
the applicant, which includes, at a minimum, the following 1331
statement: 1332
ACKNOWLEDGMENT OF POTENTIAL SURCHARGE 1333
AND ASSESSMENT LIABILITY: 1334
1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE 1335
CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS 1336
A DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER 1337
REASON, MY POLICY COULD BE SUBJECT TO SURCHARGES AND 1338
ASSESSMENTS, WHICH WILL BE DUE AND PAYABLE UPON RENEWAL, 1339
CANCELLATION, OR TERMINATION OF THE POLICY, AND THAT THE 1340
SURCHARGES AND ASSESSMENTS COULD BE AS HIGH AS 25 PERCENT 1341
OF MY PREMIUM, OR A DIFFERENT AMOUNT AS I MPOSED BY THE 1342
FLORIDA LEGISLATURE. 1343
2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER 1344
SURCHARGE, WHICH COULD BE AS HIGH AS 15 PERCENT OF MY 1345
PREMIUM, BY OBTAINING COVERAGE FROM A PRIVATE MARKET 1346
INSURER AND THAT TO BE ELIGIBLE FOR COVERAGE BY CITIZ ENS, I 1347
MUST FIRST TRY TO OBTAIN PRIVATE MARKET COVERAGE BEFORE 1348
APPLYING FOR OR RENEWING COVERAGE WITH CITIZENS. I 1349
UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES ARE 1350
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 55 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
REGULATED AND APPROVED BY THE STATE. 1351
3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY 1352
ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER 1353
INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY 1354
THE FLORIDA LEGISLATURE. 1355
4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE 1356
CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT 1357
OF THE STATE OF FLORIDA. 1358
b. The corporation shall maintain, in electronic format or 1359
otherwise, a copy of the applicant's signed acknowledgment and 1360
provide a copy of the statement to the policyholder as part of 1361
the first renewal after the effective date of s ub-subparagraph 1362
a. 1363
c. The signed acknowledgment form creates a conclusive 1364
presumption that the policyholder understood and accepted his or 1365
her potential surcharge and assessment liability as a 1366
policyholder of the corporation. 1367
21. Must provide that the income of the corporation may 1368
not inure to the benefit of any private person. 1369
Section 19. Subsection (5) of section 626.918, Florida 1370
Statutes, is amended to read: 1371
626.918 Eligible surplus lines insurers. — 1372
(5) When it appears that any particular ins urance risk 1373
which is eligible for export, but on which insurance coverage, 1374
in whole or in part, is not procurable from the eligible surplus 1375
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 56 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
lines insurers, after a search of eligible surplus lines 1376
insurers, then the surplus lines agent may file a supplemen tal 1377
signed statement setting forth such facts and advising the 1378
office that such part of the risk as shall be unprocurable, as 1379
aforesaid, is being placed with named unauthorized insurers, in 1380
the amounts and percentages set forth in the statement. Such 1381
named unauthorized insurer shall, however, before accepting any 1382
risk in this state, deposit with the department cash or 1383
securities acceptable to the office and department of the market 1384
value of $50,000 for each individual risk, contract, or 1385
certificate, which d eposit shall be held by the department for 1386
the benefit of Florida policyholders only; and the surplus lines 1387
agent shall procure from such unauthorized insurer and file with 1388
the office a certified copy of its statement of condition as of 1389
the close of the last calendar year. If such statement reveals, 1390
including both capital and surplus, net assets of at least that 1391
amount required for licensure of a domestic insurer, then the 1392
surplus lines agent may proceed to consummate such contract of 1393
insurance. Whenever an y insurance risk, or any part thereof, is 1394
placed with an unauthorized insurer, as provided herein, the 1395
policy, binder, or cover note shall contain a statement signed 1396
by the insured and the agent with the following notation: "The 1397
insured is aware that certa in insurers participating in this 1398
risk have not been approved to transact business in Florida nor 1399
have they been declared eligible as surplus lines insurers by 1400
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 57 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
the Office of Insurance Regulation of Florida. The placing of 1401
such insurance by a duly licensed surplus lines agent in Florida 1402
shall not be construed as approval of such insurer by the Office 1403
of Insurance Regulation of Florida. Consequently, the insured is 1404
aware that the insured has severely limited the assistance 1405
available under the insurance laws o f Florida. The insured is 1406
further aware that he or she may be charged a reasonable per 1407
policy fee, as provided in s. 626.916(2) s. 626.916(4), Florida 1408
Statutes, for each policy certified for export." All other 1409
provisions of this code shall apply to such pl acement the same 1410
as if such risks were placed with an eligible surplus lines 1411
insurer. 1412
Section 20. Subsection (6) of section 626.9325, Florida 1413
Statutes, is amended to read: 1414
626.9325 Service fee. — 1415
(6) For the purposes of this section, the term "premium" 1416
means the consideration for insurance by whatever name called 1417
and includes any assessment, or any membership, policy, survey, 1418
inspection, service, or similar fee or charge in consideration 1419
for an insurance contract, which items are deemed to be a part 1420
of the premium. The per -policy fee authorized by s. 626.916(2) 1421
s. 626.916(4) is specifically included within the meaning of the 1422
term "premium." 1423
Section 21. Paragraph (o) of subsection (1) of section 1424
626.9541, Florida Statutes, is amended to read: 1425
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 58 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
626.9541 Unfair methods of competition and unfair or 1426
deceptive acts or practices defined. — 1427
(1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE 1428
ACTS.—The following are defined as unfair methods of c ompetition 1429
and unfair or deceptive acts or practices: 1430
(o) Illegal dealings in premiums; excess or reduced 1431
charges for insurance. — 1432
1. Knowingly collecting any sum as a premium or charge for 1433
insurance, which is not then provided, or is not in due course 1434
to be provided, subject to acceptance of the risk by the 1435
insurer, by an insurance policy issued by an insurer as 1436
permitted by this code. 1437
2. Knowingly collecting as a premium or charge for 1438
insurance any sum in excess of or less than the premium or 1439
charge applicable to such insurance, in accordance with the 1440
applicable classifications and rates as filed with and approved 1441
by the office, and as specified in the policy; or, in cases when 1442
classifications, premiums, or rates are not required by this 1443
code to be so filed and approved, premiums and charges collected 1444
from a Florida resident in excess of or less than those 1445
specified in the policy and as fixed by the insurer. 1446
Notwithstanding any other provision of law, this provision shall 1447
not be deemed to prohibit the charging and collection, by 1448
surplus lines agents licensed under part VIII of this chapter, 1449
of the amount of applicable state and federal taxes, or fees as 1450
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 59 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
authorized by s. 626.916(2) s. 626.916(4), in addition to the 1451
premium required by the insurer or the charging and collection, 1452
by licensed agents, of the exact amount of any discount or other 1453
such fee charged by a credit card facility in connection with 1454
the use of a credit card, as authorized by subparagraph (q)3., 1455
in addition to the premium required by th e insurer. This 1456
subparagraph shall not be construed to prohibit collection of a 1457
premium for a universal life or a variable or indeterminate 1458
value insurance policy made in accordance with the terms of the 1459
contract. 1460
3.a. Imposing or requesting an additiona l premium for a 1461
policy of motor vehicle liability, personal injury protection, 1462
medical payment, or collision insurance or any combination 1463
thereof or refusing to renew the policy solely because the 1464
insured was involved in a motor vehicle accident unless the 1465
insurer's file contains information from which the insurer in 1466
good faith determines that the insured was substantially at 1467
fault in the accident. 1468
b. An insurer which imposes and collects such a surcharge 1469
or which refuses to renew such policy shall, in co njunction with 1470
the notice of premium due or notice of nonrenewal, notify the 1471
named insured that he or she is entitled to reimbursement of 1472
such amount or renewal of the policy under the conditions listed 1473
below and will subsequently reimburse him or her or r enew the 1474
policy, if the named insured demonstrates that the operator 1475
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 60 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
involved in the accident was: 1476
(I) Lawfully parked; 1477
(II) Reimbursed by, or on behalf of, a person responsible 1478
for the accident or has a judgment against such person; 1479
(III) Struck in the rear by another vehicle headed in the 1480
same direction and was not convicted of a moving traffic 1481
violation in connection with the accident; 1482
(IV) Hit by a "hit-and-run" driver, if the accident was 1483
reported to the proper authorities within 24 hours after 1484
discovering the accident; 1485
(V) Not convicted of a moving traffic violation in 1486
connection with the accident, but the operator of the other 1487
automobile involved in such accident was convicted of a moving 1488
traffic violation; 1489
(VI) Finally adjudicated not to be liable by a court of 1490
competent jurisdiction; 1491
(VII) In receipt of a traffic citation which was dismissed 1492
or nolle prossed; or 1493
(VIII) Not at fault as evidenced by a written statement 1494
from the insured establishing facts demonstrating lack of fault 1495
which are not rebutted by information in the insurer's file from 1496
which the insurer in good faith determines that the insured was 1497
substantially at fault. 1498
c. In addition to the other provisions of this 1499
subparagraph, an insurer may not fail to renew a policy if the 1500
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 61 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
insured has had only one accident in which he or she was at 1501
fault within the current 3 -year period. However, an insurer may 1502
nonrenew a policy for reasons other than accidents in accordance 1503
with s. 627.728. This subparagraph does not prohibit nonrenewa l 1504
of a policy under which the insured has had three or more 1505
accidents, regardless of fault, during the most recent 3 -year 1506
period. 1507
4. Imposing or requesting an additional premium for, or 1508
refusing to renew, a policy for motor vehicle insurance solely 1509
because the insured committed a noncriminal traffic infraction 1510
as described in s. 318.14 unless the infraction is: 1511
a. A second infraction committed within an 18 -month 1512
period, or a third or subsequent infraction committed within a 1513
36-month period. 1514
b. A violation of s. 316.183, when such violation is a 1515
result of exceeding the lawful speed limit by more than 15 miles 1516
per hour. 1517
5. Upon the request of the insured, the insurer and 1518
licensed agent shall supply to the insured the complete proof of 1519
fault or other criteria which justifies the additional charge or 1520
cancellation. 1521
6. No insurer shall impose or request an additional 1522
premium for motor vehicle insurance, cancel or refuse to issue a 1523
policy, or refuse to renew a policy because the insured or the 1524
applicant is a handicapped or physically disabled person, so 1525
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 62 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
long as such handicap or physical disability does not 1526
substantially impair such person's mechanically assisted driving 1527
ability. 1528
7. No insurer may cancel or otherwise terminate any 1529
insurance contract o r coverage, or require execution of a 1530
consent to rate endorsement, during the stated policy term for 1531
the purpose of offering to issue, or issuing, a similar or 1532
identical contract or coverage to the same insured with the same 1533
exposure at a higher premium ra te or continuing an existing 1534
contract or coverage with the same exposure at an increased 1535
premium. 1536
8. No insurer may issue a nonrenewal notice on any 1537
insurance contract or coverage, or require execution of a 1538
consent to rate endorsement, for the purpose of offering to 1539
issue, or issuing, a similar or identical contract or coverage 1540
to the same insured at a higher premium rate or continuing an 1541
existing contract or coverage at an increased premium without 1542
meeting any applicable notice requirements. 1543
9. No insurer shall, with respect to premiums charged for 1544
motor vehicle insurance, unfairly discriminate solely on the 1545
basis of age, sex, marital status, or scholastic achievement. 1546
10. Imposing or requesting an additional premium for motor 1547
vehicle comprehensive or uninsured motorist coverage solely 1548
because the insured was involved in a motor vehicle accident or 1549
was convicted of a moving traffic violation. 1550
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 63 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
11. No insurer shall cancel or issue a nonrenewal notice 1551
on any insurance policy or contract without complyin g with any 1552
applicable cancellation or nonrenewal provision required under 1553
the Florida Insurance Code. 1554
12. No insurer shall impose or request an additional 1555
premium, cancel a policy, or issue a nonrenewal notice on any 1556
insurance policy or contract because of any traffic infraction 1557
when adjudication has been withheld and no points have been 1558
assessed pursuant to s. 318.14(9) and (10). However, this 1559
subparagraph does not apply to traffic infractions involving 1560
accidents in which the insurer has incurred a loss due to the 1561
fault of the insured. 1562
Section 22. Paragraph (d) of subsection (1) of section 1563
626.935, Florida Statutes, is amended to read: 1564
626.935 Suspension, revocation, or refusal of surplus 1565
lines agent's license. — 1566
(1) The department shall deny an ap plication for, suspend, 1567
revoke, or refuse to renew the appointment of a surplus lines 1568
agent and all other licenses and appointments held by the 1569
licensee under this code, on any of the following grounds: 1570
(d) Failure to make and file his or her affidavit or 1571
reports when due as required by s. 626.931. 1572
Section 23. Subsection (4) of section 627.715, Florida 1573
Statutes, is amended to read: 1574
627.715 Flood insurance. —An authorized insurer may issue 1575
HB 643 2025
CODING: Words stricken are deletions; words underlined are additions.
hb643-00
Page 64 of 64
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
an insurance policy, contract, or endorsement providing person al 1576
lines residential coverage for the peril of flood or excess 1577
coverage for the peril of flood on any structure or the contents 1578
of personal property contained therein, subject to this section. 1579
This section does not apply to commercial lines residential or 1580
commercial lines nonresidential coverage for the peril of flood. 1581
An insurer may issue flood insurance policies, contracts, 1582
endorsements, or excess coverage on a standard, preferred, 1583
customized, flexible, or supplemental basis. 1584
(4) An agent may export a c ontract or an endorsement 1585
providing flood coverage to an eligible surplus lines insurer 1586
without making a diligent effort to seek such coverage from 1587
three or more authorized insurers under s. 626.916 s. 1588
626.916(1)(a). 1589
Section 24. This act shall take eff ect July 1, 2025. 1590