Florida Senate - 2025 CS for SB 1184 By the Committee on Banking and Insurance; and Senator DiCeglie 597-02489-25 20251184c1 1 A bill to be entitled 2 An act relating to residual market insurers; amending 3 s. 626.913, F.S.; conforming a provision to changes 4 made by the act; amending s. 626.914, F.S.; removing 5 the definition of the term diligent effort; amending 6 s. 626.916, F.S.; revising the conditions for 7 insurance coverage to be eligible for export; 8 providing a presumption that an insured is presumed to 9 have been informed of the availability of other 10 coverage under certain circumstances; amending ss. 11 627.4085, 627.701, 627.70131, 627.70132, 627.70152, 12 and 627.952, F.S.; removing applicability and 13 nonapplicability to surplus lines insurance of 14 provisions relating to applications for insurance 15 policies and annuity contracts; liability of insureds, 16 coinsurance, and deductibles; insurers duty to 17 acknowledge communications regarding claims and 18 investigations; notice of property insurance claim; 19 suits arising under a property insurance policy; and 20 risk retention and purchasing group agents, 21 respectively; creating ss. 626.9261, 626.9262, 22 626.9263, and 626.9264, F.S.; transferring to surplus 23 lines insurance those provisions relating to liability 24 of insureds and deductibles; insurers duty to 25 acknowledge communications regarding residential 26 property insurance claims and investigations; notice 27 of property insurance claim; suits arising under a 28 property insurance policy; creating s. 626.9265, F.S.; 29 prohibiting policyholders from assigning post-loss 30 insurance benefits under property insurance policies; 31 creating s. 626.9266, F.S.; requiring settlements or 32 verdicts against insureds as a condition precedent to 33 the accrual or maintenance of causes of actions 34 against liability insurers by persons who are not 35 insureds; providing that insurers are parties for the 36 purpose of recovering taxable costs and attorney fees 37 under certain circumstances; authorizing insurers to 38 insert specified contractual provisions in liability 39 insurance policies; authorizing liability insurers to 40 be joined as party defendants under certain 41 circumstances; prohibiting insurers presence from 42 being disclosed under certain circumstances; amending 43 s. 626.931, F.S.; removing the requirement that 44 certain surplus lines agents file a specified 45 affidavit; amending s. 626.932, F.S.; conforming 46 cross-references; revising the timeline of the surplus 47 lines tax remittance by surplus lines agents to the 48 Florida Surplus Lines Service Office; amending s. 49 627.351, F.S.; revising the requirements for licensed 50 agents appointed by Citizens Property Insurance 51 Corporation to write and renew certain insurance 52 coverage; amending ss. 626.918, 626.9325, and 53 626.9541, F.S.; conforming cross-references; amending 54 ss. 626.935 and 627.715, F.S.; conforming provisions 55 to changes made by the act; providing an effective 56 date. 57 58 Be It Enacted by the Legislature of the State of Florida: 59 60 Section 1.Subsection (4) of section 626.913, Florida 61 Statutes, is amended to read: 62 626.913Surplus Lines Law; short title; purposes. 63 (4)Except as may be specifically stated to apply to 64 surplus lines insurers, the provisions of Chapter 627 does do 65 not apply to surplus lines insurance authorized under ss. 66 626.913-626.937, the Surplus Lines Law. 67 Section 2.Subsection (4) of section 626.914, Florida 68 Statutes, is amended to read: 69 626.914Definitions.As used in this Surplus Lines Law, the 70 term: 71 (4)Diligent effort means seeking coverage from and 72 having been rejected by at least three authorized insurers 73 currently writing this type of coverage and documenting these 74 rejections. However, if the residential structure has a dwelling 75 replacement cost of $700,000 or more, the term means seeking 76 coverage from and having been rejected by at least one 77 authorized insurer currently writing this type of coverage and 78 documenting this rejection. 79 Section 3.Paragraphs (a) and (e) of subsection (1) and 80 subsections (2) and (3) of section 626.916, Florida Statutes, 81 are amended to read: 82 626.916Eligibility for export. 83 (1)No insurance coverage shall be eligible for export 84 unless it meets all of the following conditions: 85 (a)The full amount of insurance required must not be 86 procurable, after a diligent effort has been made by the 87 producing agent to do so, from among the insurers authorized to 88 transact and actually writing that kind and class of insurance 89 in this state, and the amount of insurance exported shall be 90 only the excess over the amount so procurable from authorized 91 insurers. Surplus lines agents must verify that a diligent 92 effort has been made by requiring a properly documented 93 statement of diligent effort from the retail or producing agent. 94 However, to be in compliance with the diligent effort 95 requirement, the surplus lines agents reliance must be 96 reasonable under the particular circumstances surrounding the 97 export of that particular risk. Reasonableness shall be assessed 98 by taking into account factors which include, but are not 99 limited to, a regularly conducted program of verification of the 100 information provided by the retail or producing agent. 101 Declinations must be documented on a risk-by-risk basis. If it 102 is not possible to obtain the full amount of insurance required 103 by layering the risk, it is permissible to export the full 104 amount. 105 (d)(e)The insured has signed or otherwise provided 106 documented acknowledgment of a disclosure in substantially the 107 following form: You are agreeing to place coverage in the 108 surplus lines market. Coverage may be available in the admitted 109 market. Persons insured by surplus lines carriers are not 110 protected under the Florida Insurance Guaranty Act with respect 111 to any right of recovery for the obligation of an insolvent 112 unlicensed insurer. Additionally, surplus lines insurers policy 113 rates and forms are not approved by any Florida regulatory 114 agency. If the acknowledgment of the disclosure is signed by 115 the insured, the insured is presumed to have been informed and 116 to know that other coverage may be available. 117 (2)The commission may by rule declare eligible for export 118 generally, and notwithstanding the provisions of paragraphs (a), 119 (b), (c), and (d) of subsection (1), any class or classes of 120 insurance coverage or risk for which it finds, after a hearing, 121 that there is no reasonable or adequate market among authorized 122 insurers. Any such rules shall continue in effect during the 123 existence of the conditions upon which predicated, but subject 124 to termination by the commission. 125 (3)(a)Subsection (1) does not apply to wet marine and 126 transportation or aviation risks that are subject to s. 626.917. 127 (b)Subsection (1) does not apply to classes of insurance 128 which are related to indemnity of deductibles for property 129 insurance or are subject to s. 627.062(3)(d)1. These classes may 130 be exportable under the following conditions: 131 1.The insurance must be placed only by or through a 132 surplus lines agent licensed in this state; 133 2.The insurer must be made eligible under s. 626.918; and 134 3.The insured has complied with paragraph (1)(e). If the 135 disclosure is signed by the insured, the insured is presumed to 136 have been informed and to know that other coverage may be 137 available, and, with respect to the diligent-effort requirement 138 under subsection (1), there is no liability on the part of, and 139 no cause of action arises against, the retail agent presenting 140 the form. 141 Section 4.Section 627.4085, Florida Statutes, is amended 142 to read: 143 627.4085Insurer name, agent name, and license 144 identification number required on application. 145 (1)All applications for an insurance policy or annuity 146 contract shall prominently display the name of the insuring 147 entity on the first page of the application form at the time the 148 coverage is bound or premium is quoted. Such applications shall 149 also disclose the name and license identification number of the 150 agent as shown on the agents license issued by the department, 151 which information may be typed, printed, stamped, or handwritten 152 if legible. 153 (2)This section does not apply to surplus lines business 154 under the provisions of ss. 626.913-626.937. 155 Section 5.Paragraph (d) of subsection (6) of section 156 627.701, Florida Statutes, is amended to read: 157 627.701Liability of insureds; coinsurance; deductibles. 158 (6) 159 (d)The office shall draft and formally propose as a rule 160 the form for the certificate of security. The certificate of 161 security may be issued in any of the following circumstances: 162 1.A mortgage lender or other financial institution may 163 issue a certificate of security after granting the applicant a 164 line of credit, secured by equity in real property or other 165 reasonable security, which line of credit may be drawn on only 166 to pay for the deductible portion of insured construction or 167 reconstruction after a hurricane loss. In the sole discretion of 168 the mortgage lender or other financial institution, the line of 169 credit may be issued to an applicant on an unsecured basis. 170 2.A licensed insurance agent may issue a certificate of 171 security after obtaining for an applicant a line of credit, 172 secured by equity in real property or other reasonable security, 173 which line of credit may be drawn on only to pay for the 174 deductible portion of insured construction or reconstruction 175 after a hurricane loss. The Florida Hurricane Catastrophe Fund 176 shall negotiate agreements creating a financing consortium to 177 serve as an additional source of lines of credit to secure 178 deductibles. Any licensed insurance agent may act as the agent 179 of such consortium. 180 3.Any person qualified to act as a trustee for any purpose 181 may issue a certificate of security secured by a pledge of 182 assets, with the restriction that the assets may be drawn on 183 only to pay for the deductible portion of insured construction 184 or reconstruction after a hurricane loss. 185 4.Any insurer, including any admitted insurer or any 186 surplus lines insurer, may issue a certificate of security after 187 issuing the applicant a policy of supplemental insurance that 188 will pay for 100 percent of the deductible portion of insured 189 construction or reconstruction after a hurricane loss. 190 5.Any other method approved by the office upon finding 191 that such other method provides a similar level of security as 192 the methods specified in this paragraph and that such other 193 method has no negative impact on residential property insurance 194 catastrophic capacity. The legislative intent of this 195 subparagraph is to provide the flexibility needed to achieve the 196 public policy of expanding property insurance capacity while 197 improving the affordability of property insurance. 198 Section 6.Section 626.9261, Florida Statutes, is created 199 to read: 200 626.9261Liability of insureds; deductibles.A surplus 201 lines insurer may issue a certificate of security after issuing 202 the applicant a policy of supplemental insurance which will pay 203 for 100 percent of the deductible portion of insured 204 construction or reconstruction after a hurricane loss. 205 Section 7.Subsection (9) of section 627.70131, Florida 206 Statutes, is amended to read: 207 627.70131Insurers duty to acknowledge communications 208 regarding claims; investigation. 209 (9)This section also applies to surplus lines insurers and 210 surplus lines insurance authorized under ss. 626.913-626.937 211 providing residential coverage. 212 Section 8.Section 626.9262, Florida Statutes, is created 213 to read: 214 626.9262Insurers duty to acknowledge communications 215 regarding residential property insurance claims; investigation. 216 (1)(a)Upon an insurers receipt of a communication with 217 respect to a residential property insurance claim, the insurer 218 shall, within 7 calendar days, review and acknowledge receipt of 219 such communication unless payment is made within that period of 220 time or unless the failure to acknowledge is caused by factors 221 beyond the control of the insurer. If the acknowledgment is not 222 in writing, a notification indicating acknowledgment must be 223 made in the insurers claim file and dated. A communication made 224 to or by a representative of an insurer with respect to a claim 225 constitutes communication to or by the insurer. 226 (b)As used in this subsection, the term representative 227 means any person to whom an insurer has granted authority or 228 responsibility to receive or make such communications with 229 respect to claims on behalf of the insurer. 230 (c)This subsection does not apply to claimants represented 231 by counsel beyond those communications necessary to provide 232 forms and instructions. 233 (2)Such acknowledgment must be responsive to the 234 communication. If the communication constitutes a notification 235 of a residential property insurance claim, unless the 236 acknowledgment reasonably advises the claimant that the claim 237 appears not to be covered by the insurer, the acknowledgment 238 must provide necessary claim forms, and instructions, including 239 an appropriate telephone number. 240 (3)(a)Unless otherwise provided by the policy of insurance 241 or by law, within 7 days after an insurer receives proof-of-loss 242 statements, the insurer shall begin such investigation as is 243 reasonably necessary unless the failure to begin such 244 investigation is caused by factors beyond the control of the 245 insurer. 246 (b)If such investigation involves a physical inspection of 247 the property, the licensed adjuster assigned by the insurer must 248 provide the policyholder with a printed or electronic document 249 containing his or her name and state adjuster license number. An 250 insurer must conduct any such physical inspection within 30 days 251 after its receipt of the proof-of-loss statements. 252 (c)Any subsequent communication with the policyholder 253 regarding the residential property insurance claim must also 254 include the name and license number of the adjuster 255 communicating about the claim. Communication of the adjusters 256 name and license number may be included with other information 257 provided to the policyholder. 258 (d)An insurer may use electronic methods to investigate 259 the loss. Such electronic methods may include any method that 260 provides the insurer with clear, color pictures or video 261 documenting the loss, including, but not limited to, electronic 262 photographs or video recordings of the loss; video conferencing 263 between the adjuster and the policyholder which includes video 264 recording of the loss; and video recordings or photographs of 265 the loss using a drone, driverless vehicle, or other machine 266 that can move independently or through remote control. The 267 insurer also may allow the policyholder to use such methods to 268 assist in the investigation of the loss. An insurer may void the 269 insurance policy if the policyholder or any other person at the 270 direction of the policyholder, with intent to injure, defraud, 271 or deceive any insurer, commits insurance fraud by providing 272 false, incomplete, or misleading information concerning any fact 273 or thing material to a claim using electronic methods. The use 274 of electronic methods to investigate the loss does not prohibit 275 an insurer from assigning a licensed adjuster to physically 276 inspect the property. 277 (e)The insurer shall send the policyholder a copy of any 278 detailed estimate of the amount of the loss within 7 days after 279 the estimate is generated by an insurers adjuster. This 280 paragraph does not require that an insurer create a detailed 281 estimate of the amount of the loss if such estimate is not 282 reasonably necessary as part of the claim investigation. 283 (4)An insurer shall maintain: 284 (a)A record or log of each adjuster who communicates with 285 the policyholder as provided in paragraphs (3)(b) and (c) and 286 provide a list of such adjusters to the insured, office, or 287 department upon request. 288 (b)Claim records, including dates, of all of the 289 following: 290 1.Any claim-related communication made between the insurer 291 and the policyholder or the policyholders representative. 292 2.The insurers receipt of the policyholders proof-of 293 loss statement. 294 3.Any claim-related request for information made by the 295 insurer to the policyholder or the policyholders 296 representative. 297 4.Any claim-related inspections of the property made by 298 the insurer, including physical inspections and inspections made 299 by electronic means. 300 5.Any detailed estimate of the amount of the loss 301 generated by the insurers adjuster. 302 6.The beginning and end of any tolling period provided for 303 in subsection (8). 304 7.The insurers payment or denial of the claim. 305 (5)For purposes of this section, the term: 306 (a)Factors beyond the control of the insurer means: 307 1.Any of the following events which is the basis for the 308 office issuing an order finding that such event renders all or 309 specified residential property insurers reasonably unable to 310 meet the requirements of this section in specified locations and 311 ordering that such insurer or insurers may have additional time 312 as specified by the office to comply with the requirements of 313 this section: a state of emergency declared by the Governor 314 under s. 252.36, a breach of security that must be reported 315 under s. 501.171(3), or an information technology issue. The 316 office may not extend the period for payment or denial of a 317 claim for more than 30 additional days. 318 2.Actions by the policyholder or the policyholders 319 representative which constitute fraud, lack of cooperation, or 320 intentional misrepresentation regarding the claim for which 321 benefits are owed when such actions reasonably prevent the 322 insurer from complying with any requirement of this section. 323 (b)Insurer means an eligible surplus lines insurer that 324 issues residential property policies. 325 (6)(a)When providing a preliminary or partial estimate of 326 damage regarding a residential property insurance claim, an 327 insurer shall include with the estimate the following statement 328 printed in at least 12-point bold, uppercase type: THIS ESTIMATE 329 REPRESENTS OUR CURRENT EVALUATION OF THE COVERED DAMAGES TO YOUR 330 INSURED PROPERTY AND MAY BE REVISED AS WE CONTINUE TO EVALUATE 331 YOUR CLAIM. IF YOU HAVE QUESTIONS, CONCERNS, OR ADDITIONAL 332 INFORMATION REGARDING YOUR CLAIM, WE ENCOURAGE YOU TO CONTACT 333 US. 334 (b)When providing a payment on a claim which is not the 335 full and final payment for the claim, an insurer shall include 336 with the payment the following statement printed in at least 12 337 point bold, uppercase type: WE ARE CONTINUING TO EVALUATE YOUR 338 CLAIM INVOLVING YOUR INSURED PROPERTY AND MAY ISSUE ADDITIONAL 339 PAYMENTS. IF YOU HAVE QUESTIONS, CONCERNS, OR ADDITIONAL 340 INFORMATION REGARDING YOUR CLAIM, WE ENCOURAGE YOU TO CONTACT 341 US. 342 (7)(a)Within 60 days after an insurer receives notice of 343 an initial, reopened, or supplemental property insurance claim 344 from a policyholder, the insurer shall pay or deny such claim or 345 a portion of the claim unless the failure to pay is caused by 346 factors beyond the control of the insurer. The insurer shall 347 provide a reasonable explanation in writing to the policyholder 348 of the basis in the insurance policy, in relation to the facts 349 or applicable law, for the payment, denial, or partial denial of 350 a claim. If the insurers claim payment is less than specified 351 in any insurers detailed estimate of the amount of the loss, 352 the insurer must provide a reasonable explanation in writing of 353 the difference to the policyholder. Any payment of an initial or 354 supplemental claim or portion of such claim made 60 days after 355 the insurer receives notice of the claim, or made after the 356 expiration of any additional timeframe provided to pay or deny a 357 claim or a portion of a claim made pursuant to an order of the 358 office finding factors beyond the control of the insurer, 359 whichever is later, bears interest at the rate set forth in s. 360 55.03. Interest begins to accrue from the date the insurer 361 receives notice of the claim. The provisions of this subsection 362 may not be waived, voided, or nullified by the terms of the 363 insurance policy. If there is a right to prejudgment interest, 364 the insured must select whether to receive prejudgment interest 365 or interest under this subsection. Interest is payable when the 366 claim or portion of the claim is paid. Failure to comply with 367 this subsection constitutes a violation of this code. However, 368 failure to comply with this subsection does not form the sole 369 basis for a private cause of action. 370 (b)Notwithstanding the definitions in subsection (5), for 371 purposes of this subsection, the term claim means any of the 372 following: 373 1.A claim under an insurance policy providing residential 374 coverage as defined in s. 627.4025(1). 375 2.A claim for structural or contents coverage under a 376 commercial property insurance policy if the insured structure is 377 10,000 square feet or less. 378 3.A claim for contents coverage under a commercial tenant 379 policy if the insured premises is 10,000 square feet or less. 380 (c)This subsection does not apply to claims under an 381 insurance policy covering structures or contents in more than 382 one state. 383 (8)The requirements of this section are tolled: 384 (a)During the pendency of any mediation proceeding under 385 s. 627.7015 or any alternative dispute resolution proceeding 386 provided for in the insurance contract. The tolling period ends 387 upon the end of the mediation or alternative dispute resolution 388 proceeding. 389 (b)Upon the failure of a policyholder or a representative 390 of the policyholder to provide material claims information 391 requested by the insurer within 10 days after the request was 392 received. The tolling period ends upon the insurers receipt of 393 the requested information. Tolling under this paragraph applies 394 only to requests sent by the insurer to the policyholder or a 395 representative of the policyholder at least 15 days before the 396 insurer is required to pay or deny the claim or a portion of the 397 claim under subsection (7). 398 Section 9.Subsection (2) of section 627.70132, Florida 399 Statutes, is amended to read: 400 627.70132Notice of property insurance claim. 401 (2)A claim or reopened claim, but not a supplemental 402 claim, under an insurance policy that provides property 403 insurance, as defined in s. 624.604, including a property 404 insurance policy issued by an eligible surplus lines insurer, 405 for loss or damage caused by any peril is barred unless notice 406 of the claim was given to the insurer in accordance with the 407 terms of the policy within 1 year after the date of loss. A 408 supplemental claim is barred unless notice of the supplemental 409 claim was given to the insurer in accordance with the terms of 410 the policy within 18 months after the date of loss. The time 411 limitations of this subsection are tolled during any term of 412 deployment to a combat zone or combat support posting which 413 materially affects the ability of a named insured who is a 414 servicemember as defined in s. 250.01 to file a claim, 415 supplemental claim, or reopened claim. 416 Section 10.Section 626.9263, Florida Statutes, is created 417 to read: 418 626.9263Notice of property insurance claim. 419 (1)As used in this section, the term: 420 (a)Reopened claim means a claim that an insurer has 421 previously closed, but that has been reopened upon an insureds 422 request for additional costs for loss or damage previously 423 disclosed to the insurer. 424 (b)Supplemental claim means a claim for additional loss 425 or damage from the same peril which the insurer has previously 426 adjusted or for which costs have been incurred while completing 427 repairs or replacement pursuant to an open claim for which 428 timely notice was previously provided to the insurer. 429 (2)A claim or reopened claim, but not a supplemental 430 claim, under an insurance policy that provides property 431 insurance, as defined in s. 624.604, for loss or damage caused 432 by any peril is barred unless notice of the claim was given to 433 the insurer in accordance with the terms of the policy within 1 434 year after the date of loss. A supplemental claim is barred 435 unless notice of the supplemental claim was given to the insurer 436 in accordance with the terms of the policy within 18 months 437 after the date of loss. The time limitations of this subsection 438 are tolled during any term of deployment to a combat zone or 439 combat support posting which materially affects the ability of a 440 named insured who is a servicemember as defined in s. 250.01 to 441 file a claim, supplemental claim, or reopened claim. 442 (3)For claims resulting from hurricanes, tornadoes, 443 windstorms, severe rain, or other weather-related events, the 444 date of loss is the date that the hurricane made landfall or the 445 tornado, windstorm, severe rain, or other weather-related event 446 is verified by the National Oceanic and Atmospheric 447 Administration. 448 (4)(a)A notice of claim for loss assessment coverage under 449 s. 627.714 may not occur later than 3 years after the date of 450 loss and must be provided to the insurer the later of: 451 1.Within 1 year after the date of loss; or 452 2.Within 90 days after the date on which the condominium 453 association or its governing board votes to levy an assessment 454 resulting from a covered loss. 455 (b)For purposes of this subsection, the term date of 456 loss means the date of the covered loss event that created the 457 need for an assessment. 458 (5)This section does not affect any applicable limitation 459 on civil actions provided in s. 95.11 for claims, supplemental 460 claims, or reopened claims timely filed under this section. 461 Section 11.Subsection (1) of section 627.70152, Florida 462 Statutes, is amended to read: 463 627.70152Suits arising under a property insurance policy. 464 (1)APPLICATION.This section applies exclusively to all 465 suits arising under a residential or commercial property 466 insurance policy, including a residential or commercial property 467 insurance policy issued by an eligible surplus lines insurer. 468 Section 12.Section 626.9264, Florida Statutes, is created 469 to read: 470 626.9264Suits arising under a property insurance policy. 471 (1)APPLICATION.This section applies exclusively to all 472 suits arising under a residential or commercial property 473 insurance policy. 474 (2)DEFINITIONS.As used in this section, the term: 475 (a)Claimant means an insured who is filing suit under a 476 residential or commercial property insurance policy. 477 (b)Disputed amount means the difference between the 478 claimants presuit settlement demand, not including attorney 479 fees and costs listed in the demand, and the insurers presuit 480 settlement offer, not including attorney fees and costs, if part 481 of the offer. 482 (c)Presuit settlement demand means the demand made by 483 the claimant in the written notice of intent to initiate 484 litigation as required by paragraph (3)(a). The demand must 485 include the amount of reasonable and necessary attorney fees and 486 costs incurred by the claimant, to be calculated by multiplying 487 the number of hours actually worked on the claim by the 488 claimants attorney as of the date of the notice by a reasonable 489 hourly rate. 490 (d)Presuit settlement offer means the offer made by the 491 insurer in its written response to the notice required under 492 subsection (3). 493 (3)NOTICE. 494 (a)As a condition precedent to filing a suit under a 495 property insurance policy, a claimant must provide the 496 department with written notice of intent to initiate litigation 497 on a form provided by the department. Such notice must be given 498 at least 10 business days before filing suit under the policy, 499 but may not be given before the insurer has made a determination 500 of coverage under s. 626.9263. Notice to the insurer must be 501 provided by the department to the e-mail address designated by 502 the insurer under s. 624.422. The notice must state with 503 specificity all of the following information: 504 1.That the notice is provided pursuant to this section. 505 2.The alleged acts or omissions of the insurer giving rise 506 to the suit, which may include a denial of coverage. 507 3.If provided by an attorney or other representative, that 508 a copy of the notice was provided to the claimant. 509 4.If the notice is provided following a denial of 510 coverage, an estimate of damages, if known. 511 5.If the notice is provided following acts or omissions by 512 the insurer other than denial of coverage, both of the 513 following: 514 a.The presuit settlement demand, which must itemize the 515 damages, attorney fees, and costs. 516 b.The disputed amount. 517 518 Documentation to support the information provided in this 519 paragraph may be provided along with the notice to the insurer. 520 (b)A claimant must serve a notice of intent to initiate 521 litigation within the time limits provided in s. 95.11. However, 522 the notice is not required if the suit is a counterclaim. 523 Service of a notice tolls the time limits provided in s. 95.11 524 for 10 business days if such time limits will expire before the 525 end of the 10-day notice period. 526 (4)INSURER DUTIES.An insurer must have a procedure for 527 the prompt investigation, review, and evaluation of the dispute 528 stated in the notice and must investigate each claim contained 529 in the notice in accordance with the Florida Insurance Code. An 530 insurer must respond in writing within 10 business days after 531 receiving the notice specified in subsection (3). The insurer 532 must provide the response to the claimant by e-mail if the 533 insured has designated an e-mail address in the notice. 534 (a)If an insurer is responding to a notice served on the 535 insurer following a denial of coverage by the insurer, the 536 insurer must respond by: 537 1.Accepting coverage; 538 2.Continuing to deny coverage; or 539 3.Asserting the right to reinspect the damaged property. 540 If the insurer responds by asserting the right to reinspect the 541 damaged property, it has 14 business days after the response 542 asserting that right to reinspect the property to accept or 543 continue to deny coverage. The time limits provided in s. 95.11 544 are tolled during the reinspection period if such time limits 545 expire before the end of the reinspection period. If the insurer 546 continues to deny coverage, the claimant may file suit without 547 providing additional notice to the insurer. 548 (b)If an insurer is responding to a notice provided to the 549 insurer alleging an act or omission by the insurer other than a 550 denial of coverage, the insurer must respond by making a 551 settlement offer or requiring the claimant to participate in 552 appraisal or another method of alternative dispute resolution. 553 The time limits provided in s. 95.11 are tolled as long as 554 appraisal or other alternative dispute resolution is ongoing if 555 such time limits expire during the appraisal process or dispute 556 resolution process. If the appraisal or alternative dispute 557 resolution has not been concluded within 90 days after the 558 expiration of the 10-day notice of intent to initiate litigation 559 specified in subsection (3), the claimant or claimants attorney 560 may immediately file suit without providing the insurer 561 additional notice. 562 (5)DISMISSAL OF SUIT.A court must dismiss without 563 prejudice any claimants suit relating to a claim for which a 564 notice of intent to initiate litigation was not given as 565 required by this section or if such suit is commenced before the 566 expiration of any time period provided under subsection (4), as 567 applicable. 568 (6)ADMISSIBILITY OF NOTICE AND RESPONSE.The notice 569 provided pursuant to subsection (3) and, if applicable, the 570 documentation to support the information provided in the notice: 571 (a)Are not admissible as evidence in any proceeding. 572 (b)Do not relieve any obligation that an insured or 573 assignee has to give notice under any other provision of law. 574 (7)TOLLING.If a claim is not resolved during the presuit 575 notice process and if the time limits provided in s. 95.11 576 expire in the 30 days following the conclusion of the presuit 577 notice process, such time limits are tolled for 30 days. 578 Section 13.Section 626.9265, Florida Statutes, is created 579 to read: 580 626.9265Assignment agreements.A policyholder may not 581 assign, in whole or in part, any post-loss insurance benefit 582 under any residential property insurance policy or under any 583 commercial property insurance policy, as defined in s. 584 627.0625(1)(a). An attempt to assign post-loss property 585 insurance benefits under such a policy is void, invalid, and 586 unenforceable. 587 Section 14.Section 626.9266, Florida Statutes, is created 588 to read: 589 626.9266Nonjoinder of insurers. 590 (1)It shall be a condition precedent to the accrual or 591 maintenance of a cause of action against a liability insurer by 592 a person who is not an insured under the terms of the liability 593 insurance contract that such person must first obtain a 594 settlement or verdict against a person who is an insured under 595 the terms of such policy for a cause of action which is covered 596 by such policy. 597 (2)Notwithstanding subsection (1), any insurer that pays 598 any taxable costs or attorney fees that would be recoverable by 599 the insured but for the fact that such costs or fees were paid 600 by the insurer is considered a party for the purpose of 601 recovering such fees or costs. A person who is not an insured 602 under the terms of a liability insurance policy may not have any 603 interest in such policy, either as a third-party beneficiary or 604 otherwise, before first obtaining a settlement or verdict 605 against a person who is an insured under the terms of such 606 policy for a cause of action which is covered by such policy. 607 (3)Insurers are affirmatively granted the substantive 608 right to insert in liability insurance policies contractual 609 provisions that preclude persons who are not designated as 610 insureds in such policies from joining a liability insurer as a 611 party defendant with its insured before the rendition of a 612 verdict. The contractual provisions authorized in this 613 subsection are fully enforceable. 614 (4)When a judgment is entered or a settlement is reached 615 during the pendency of litigation, a liability insurer may be 616 joined as a party defendant for the purposes of entering final 617 judgment or enforcing the settlement by the motion of any party, 618 unless the insurer denied coverage under s. 627.426(2) or 619 defended under a reservation of rights pursuant to s. 620 627.426(2). A copy of the motion to join the insurer must be 621 served on the insurer by certified mail. If a judgment is 622 reversed or remanded on appeal, the insurers presence may not 623 be disclosed to the jury in a subsequent trial. 624 Section 15.Subsection (1) of section 627.952, Florida 625 Statutes, is amended to read: 626 627.952Risk retention and purchasing group agents. 627 (1)Any person offering, soliciting, selling, purchasing, 628 administering, or otherwise servicing insurance contracts, 629 certificates, or agreements for any purchasing group or risk 630 retention group to any resident of this state, either directly 631 or indirectly, by the use of mail, advertising, or other means 632 of communication, shall obtain a license and appointment to act 633 as a resident general lines agent, if a resident of this state, 634 or a nonresident general lines agent if not a resident. Any such 635 person shall be subject to all requirements of the Florida 636 Insurance Code. 637 (a)All books, records, statements, and accounts required 638 to be established and maintained with respect to activities 639 described in this subsection shall be established and maintained 640 on a segregated basis, separate and apart from all other books, 641 records, statements, and accounts regarding the agents other 642 transactions. 643 (b)Any person required to be licensed and appointed under 644 this subsection, in order to place business through Florida 645 eligible surplus lines carriers, must, if a resident of this 646 state, be licensed and appointed as a surplus lines agent. If 647 not a resident of this state, such person must be licensed and 648 appointed as a surplus lines agent in her or his state of 649 residence and be licensed and appointed as a nonresident surplus 650 lines agent in this state. 651 Section 16.Section 626.931, Florida Statutes, is amended 652 to read: 653 626.931Agent affidavit and Insurer reporting 654 requirements. 655 (1)Each surplus lines agent that has transacted business 656 during a calendar quarter shall on or before the 45th day 657 following the calendar quarter file with the Florida Surplus 658 Lines Service Office an affidavit, on forms as prescribed and 659 furnished by the Florida Surplus Lines Service Office, stating 660 that all surplus lines insurance transacted by him or her during 661 such calendar quarter has been submitted to the Florida Surplus 662 Lines Service Office as required. 663 (2)The affidavit of the surplus lines agent shall include 664 efforts made to place coverages with authorized insurers and the 665 results thereof. 666 (1)(3)Each foreign insurer accepting premiums shall, on or 667 before the end of the month following each calendar quarter, 668 file with the Florida Surplus Lines Service Office a verified 669 report of all surplus lines insurance transacted by such insurer 670 for insurance risks located in this state during such calendar 671 quarter. 672 (2)(4)Each alien insurer accepting premiums shall, on or 673 before June 30 of each year, file with the Florida Surplus Lines 674 Service Office a verified report of all surplus lines insurance 675 transacted by such insurer for insurance risks located in this 676 state during the preceding calendar year. 677 (3)(5)The department may waive the filing requirements 678 described in subsections (1) (3) and (2) (4). 679 (4)(6)Each insurers report and supporting information 680 shall be in a computer-readable format as determined by the 681 Florida Surplus Lines Service Office or shall be submitted on 682 forms prescribed by the Florida Surplus Lines Service Office and 683 shall show for each applicable agent: 684 (a)A listing of all policies, certificates, cover notes, 685 or other forms of confirmation of insurance coverage or any 686 substitutions thereof or endorsements thereto and the 687 identifying number; and 688 (b)Any additional information required by the department 689 or Florida Surplus Lines Service Office. 690 Section 17.Paragraph (a) of subsection (2) and subsection 691 (6) of section 626.932, Florida Statutes, are amended to read: 692 626.932Surplus lines tax. 693 (2)(a)The surplus lines agent shall make payable to the 694 department the tax related to each calendar quarters business 695 as reported to the Florida Surplus Lines Service Office, and 696 remit the tax to the Florida Surplus Lines Service Office at the 697 same time as the fee required provided for the filing of the 698 quarterly affidavit, under s. 626.9325 s. 626.931. The Florida 699 Surplus Lines Service Office shall forward to the department the 700 taxes and any interest collected pursuant to paragraph (b), 701 within 10 days after of receipt. 702 (6)For the purposes of this section, the term premium 703 means the consideration for insurance by whatever name called 704 and includes any assessment, or any membership, policy, survey, 705 inspection, service, or similar fee or charge in consideration 706 for an insurance contract, which items are deemed to be a part 707 of the premium. The per-policy fee authorized by s. 626.916(2) 708 s. 626.916(4) is specifically included within the meaning of the 709 term premium. However, the service fee imposed pursuant to s. 710 626.9325 is excluded from the meaning of the term premium. 711 Section 18.Paragraph (c) of subsection (6) of section 712 627.351, Florida Statutes, is amended to read: 713 627.351Insurance risk apportionment plans. 714 (6)CITIZENS PROPERTY INSURANCE CORPORATION. 715 (c)The corporations plan of operation: 716 1.Must provide for adoption of residential property and 717 casualty insurance policy forms and commercial residential and 718 nonresidential property insurance forms, which must be approved 719 by the office before use. The corporation shall adopt the 720 following policy forms: 721 a.Standard personal lines policy forms that are 722 comprehensive multiperil policies providing full coverage of a 723 residential property equivalent to the coverage provided in the 724 private insurance market under an HO-3, HO-4, or HO-6 policy. 725 b.Basic personal lines policy forms that are policies 726 similar to an HO-8 policy or a dwelling fire policy that provide 727 coverage meeting the requirements of the secondary mortgage 728 market, but which is more limited than the coverage under a 729 standard policy. 730 c.Commercial lines residential and nonresidential policy 731 forms that are generally similar to the basic perils of full 732 coverage obtainable for commercial residential structures and 733 commercial nonresidential structures in the admitted voluntary 734 market. 735 d.Personal lines and commercial lines residential property 736 insurance forms that cover the peril of wind only. The forms are 737 applicable only to residential properties located in areas 738 eligible for coverage by the Florida Windstorm Underwriting 739 Association, as those areas were defined on January 1, 2002. 740 e.Commercial lines nonresidential property insurance forms 741 that cover the peril of wind only. The forms are applicable only 742 to nonresidential properties located in areas eligible for 743 coverage by the Florida Windstorm Underwriting Association, as 744 those areas were defined on January 1, 2002. 745 f.The corporation may adopt variations of the policy forms 746 listed in sub-subparagraphs a.-e. which contain more restrictive 747 coverage. 748 g.The corporation shall offer a basic personal lines 749 policy similar to an HO-8 policy with dwelling repair based on 750 common construction materials and methods. 751 2.Must provide that the corporation adopt a program in 752 which the corporation and authorized insurers enter into quota 753 share primary insurance agreements for hurricane coverage, as 754 defined in s. 627.4025(2)(a), for eligible risks, and adopt 755 property insurance forms for eligible risks which cover the 756 peril of wind only. 757 a.As used in this subsection, the term: 758 (I)Approved surplus lines insurer means an eligible 759 surplus lines insurer that: 760 (A)Has a financial strength rating of A- or higher from 761 A.M. Best Company; 762 (B)Has a personal lines residential risk program that is 763 managed by a Florida resident surplus lines broker; 764 (C)Applies to the office to participate in the take-out 765 process to offer coverage to applicants for new coverage from 766 the corporation or current policyholders of the corporation 767 through a take-out plan approved by the office; 768 (D)Does not, as part of any take-out plan approved by the 769 office, offer coverage on any personal lines residential risk 770 that is a primary residence or has a homestead exemption under 771 chapter 196; 772 (E)Files rates for review as part of a take-out plan with 773 the office. The office shall review whether the premium is more 774 than 20 percent greater than the premium for comparable coverage 775 from the corporation; and 776 (F)Provides data to the office related to coverage and 777 rates in a format promulgated by the commission. 778 (II)Eligible risks means personal lines residential and 779 commercial lines residential risks that meet the underwriting 780 criteria of the corporation and are located in areas that were 781 eligible for coverage by the Florida Windstorm Underwriting 782 Association on January 1, 2002. 783 (III)Primary residence means the dwelling that is the 784 policyholders primary home or is a rental property that is the 785 primary home of the tenant, and which the policyholder or tenant 786 occupies for more than 9 months of each year. 787 (IV)Quota share primary insurance means an arrangement 788 in which the primary hurricane coverage of an eligible risk is 789 provided in specified percentages by the corporation and an 790 authorized insurer. The corporation and authorized insurer are 791 each solely responsible for a specified percentage of hurricane 792 coverage of an eligible risk as set forth in a quota share 793 primary insurance agreement between the corporation and an 794 authorized insurer and the insurance contract. The 795 responsibility of the corporation or authorized insurer to pay 796 its specified percentage of hurricane losses of an eligible 797 risk, as set forth in the agreement, may not be altered by the 798 inability of the other party to pay its specified percentage of 799 losses. Eligible risks that are provided hurricane coverage 800 through a quota share primary insurance arrangement must be 801 provided policy forms that set forth the obligations of the 802 corporation and authorized insurer under the arrangement, 803 clearly specify the percentages of quota share primary insurance 804 provided by the corporation and authorized insurer, and 805 conspicuously and clearly state that the authorized insurer and 806 the corporation may not be held responsible beyond their 807 specified percentage of coverage of hurricane losses. 808 b.The corporation may enter into quota share primary 809 insurance agreements with authorized insurers at corporation 810 coverage levels of 90 percent and 50 percent. 811 c.If the corporation determines that additional coverage 812 levels are necessary to maximize participation in quota share 813 primary insurance agreements by authorized insurers, the 814 corporation may establish additional coverage levels. However, 815 the corporations quota share primary insurance coverage level 816 may not exceed 90 percent. 817 d.Any quota share primary insurance agreement entered into 818 between an authorized insurer and the corporation must provide 819 for a uniform specified percentage of coverage of hurricane 820 losses, by county or territory as set forth by the corporation 821 board, for all eligible risks of the authorized insurer covered 822 under the agreement. 823 e.Any quota share primary insurance agreement entered into 824 between an authorized insurer and the corporation is subject to 825 review and approval by the office. However, such agreement shall 826 be authorized only as to insurance contracts entered into 827 between an authorized insurer and an insured who is already 828 insured by the corporation for wind coverage. 829 f.For all eligible risks covered under quota share primary 830 insurance agreements, the exposure and coverage levels for both 831 the corporation and authorized insurers shall be reported by the 832 corporation to the Florida Hurricane Catastrophe Fund. For all 833 policies of eligible risks covered under such agreements, the 834 corporation and the authorized insurer must maintain complete 835 and accurate records for the purpose of exposure and loss 836 reimbursement audits as required by fund rules. The corporation 837 and the authorized insurer shall each maintain duplicate copies 838 of policy declaration pages and supporting claims documents. 839 g.The corporation board shall establish in its plan of 840 operation standards for quota share agreements which ensure that 841 there is no discriminatory application among insurers as to the 842 terms of the agreements, pricing of the agreements, incentive 843 provisions if any, and consideration paid for servicing policies 844 or adjusting claims. 845 h.The quota share primary insurance agreement between the 846 corporation and an authorized insurer must set forth the 847 specific terms under which coverage is provided, including, but 848 not limited to, the sale and servicing of policies issued under 849 the agreement by the insurance agent of the authorized insurer 850 producing the business, the reporting of information concerning 851 eligible risks, the payment of premium to the corporation, and 852 arrangements for the adjustment and payment of hurricane claims 853 incurred on eligible risks by the claims adjuster and personnel 854 of the authorized insurer. Entering into a quota sharing 855 insurance agreement between the corporation and an authorized 856 insurer is voluntary and at the discretion of the authorized 857 insurer. 858 3.May provide that the corporation may employ or otherwise 859 contract with individuals or other entities to provide 860 administrative or professional services that may be appropriate 861 to effectuate the plan. The corporation may borrow funds by 862 issuing bonds or by incurring other indebtedness, and shall have 863 other powers reasonably necessary to effectuate the requirements 864 of this subsection, including, without limitation, the power to 865 issue bonds and incur other indebtedness in order to refinance 866 outstanding bonds or other indebtedness. The corporation may 867 seek judicial validation of its bonds or other indebtedness 868 under chapter 75. The corporation may issue bonds or incur other 869 indebtedness, or have bonds issued on its behalf by a unit of 870 local government pursuant to subparagraph (q)2. in the absence 871 of a hurricane or other weather-related event, upon a 872 determination by the corporation, subject to approval by the 873 office, that such action would enable it to efficiently meet the 874 financial obligations of the corporation and that such 875 financings are reasonably necessary to effectuate the 876 requirements of this subsection. The corporation may take all 877 actions needed to facilitate tax-free status for such bonds or 878 indebtedness, including formation of trusts or other affiliated 879 entities. The corporation may pledge assessments, projected 880 recoveries from the Florida Hurricane Catastrophe Fund, other 881 reinsurance recoverables, policyholder surcharges and other 882 surcharges, and other funds available to the corporation as 883 security for bonds or other indebtedness. In recognition of s. 884 10, Art. I of the State Constitution, prohibiting the impairment 885 of obligations of contracts, it is the intent of the Legislature 886 that no action be taken whose purpose is to impair any bond 887 indenture or financing agreement or any revenue source committed 888 by contract to such bond or other indebtedness. 889 4.Must require that the corporation operate subject to the 890 supervision and approval of a board of governors consisting of 891 nine individuals who are residents of this state and who are 892 from different geographical areas of the state, one of whom is 893 appointed by the Governor and serves solely to advocate on 894 behalf of the consumer. The appointment of a consumer 895 representative by the Governor is deemed to be within the scope 896 of the exemption provided in s. 112.313(7)(b) and is in addition 897 to the appointments authorized under sub-subparagraph a. 898 a.The Governor, the Chief Financial Officer, the President 899 of the Senate, and the Speaker of the House of Representatives 900 shall each appoint two members of the board. At least one of the 901 two members appointed by each appointing officer must have 902 demonstrated expertise in insurance and be deemed to be within 903 the scope of the exemption provided in s. 112.313(7)(b). The 904 Chief Financial Officer shall designate one of the appointees as 905 chair. All board members serve at the pleasure of the appointing 906 officer. All members of the board are subject to removal at will 907 by the officers who appointed them. All board members, including 908 the chair, must be appointed to serve for 3-year terms beginning 909 annually on a date designated by the plan. However, for the 910 first term beginning on or after July 1, 2009, each appointing 911 officer shall appoint one member of the board for a 2-year term 912 and one member for a 3-year term. A board vacancy shall be 913 filled for the unexpired term by the appointing officer. The 914 Chief Financial Officer shall appoint a technical advisory group 915 to provide information and advice to the board in connection 916 with the boards duties under this subsection. The executive 917 director and senior managers of the corporation shall be engaged 918 by the board and serve at the pleasure of the board. Any 919 executive director appointed on or after July 1, 2006, is 920 subject to confirmation by the Senate. The executive director is 921 responsible for employing other staff as the corporation may 922 require, subject to review and concurrence by the board. 923 b.The board shall create a Market Accountability Advisory 924 Committee to assist the corporation in developing awareness of 925 its rates and its customer and agent service levels in 926 relationship to the voluntary market insurers writing similar 927 coverage. 928 (I)The members of the advisory committee consist of the 929 following 11 persons, one of whom must be elected chair by the 930 members of the committee: four representatives, one appointed by 931 the Florida Association of Insurance Agents, one by the Florida 932 Association of Insurance and Financial Advisors, one by the 933 Professional Insurance Agents of Florida, and one by the Latin 934 American Association of Insurance Agencies; three 935 representatives appointed by the insurers with the three highest 936 voluntary market share of residential property insurance 937 business in the state; one representative from the Office of 938 Insurance Regulation; one consumer appointed by the board who is 939 insured by the corporation at the time of appointment to the 940 committee; one representative appointed by the Florida 941 Association of Realtors; and one representative appointed by the 942 Florida Bankers Association. All members shall be appointed to 943 3-year terms and may serve for consecutive terms. 944 (II)The committee shall report to the corporation at each 945 board meeting on insurance market issues which may include rates 946 and rate competition with the voluntary market; service, 947 including policy issuance, claims processing, and general 948 responsiveness to policyholders, applicants, and agents; and 949 matters relating to depopulation. 950 5.Must provide a procedure for determining the eligibility 951 of a risk for coverage, as follows: 952 a.Subject to s. 627.3517, with respect to personal lines 953 residential risks that are primary residences, if the risk is 954 offered coverage from an authorized insurer at the insurers 955 approved rate under a standard policy including wind coverage 956 or, if consistent with the insurers underwriting rules as filed 957 with the office, a basic policy including wind coverage, for a 958 new application to the corporation for coverage, the risk is not 959 eligible for any policy issued by the corporation unless the 960 premium for coverage from the authorized insurer is more than 20 961 percent greater than the premium for comparable coverage from 962 the corporation. Whenever an offer of coverage for a personal 963 lines residential risk that is a primary residence is received 964 for a policyholder of the corporation at renewal from an 965 authorized insurer, if the offer is equal to or less than the 966 corporations renewal premium for comparable coverage, the risk 967 is not eligible for coverage with the corporation for policies 968 that renew before April 1, 2023; for policies that renew on or 969 after that date, the risk is not eligible for coverage with the 970 corporation unless the premium for coverage from the authorized 971 insurer is more than 20 percent greater than the corporations 972 renewal premium for comparable coverage. If the risk is not able 973 to obtain such offer, the risk is eligible for a standard policy 974 including wind coverage or a basic policy including wind 975 coverage issued by the corporation; however, if the risk could 976 not be insured under a standard policy including wind coverage 977 regardless of market conditions, the risk is eligible for a 978 basic policy including wind coverage unless rejected under 979 subparagraph 8. The corporation shall determine the type of 980 policy to be provided on the basis of objective standards 981 specified in the underwriting manual and based on generally 982 accepted underwriting practices. A policyholder removed from the 983 corporation through an assumption agreement does not remain 984 eligible for coverage from the corporation after the end of the 985 policy term. However, any policy removed from the corporation 986 through an assumption agreement remains on the corporations 987 policy forms through the end of the policy term. This sub 988 subparagraph applies only to risks that are primary residences. 989 (I)If the risk accepts an offer of coverage through the 990 market assistance plan or through a mechanism established by the 991 corporation other than a plan established by s. 627.3518, before 992 a policy is issued to the risk by the corporation or during the 993 first 30 days of coverage by the corporation, and the producing 994 agent who submitted the application to the plan or to the 995 corporation is not currently appointed by the insurer, the 996 insurer shall: 997 (A)Pay to the producing agent of record of the policy for 998 the first year, an amount that is the greater of the insurers 999 usual and customary commission for the type of policy written or 1000 a fee equal to the usual and customary commission of the 1001 corporation; or 1002 (B)Offer to allow the producing agent of record of the 1003 policy to continue servicing the policy for at least 1 year and 1004 offer to pay the agent the greater of the insurers or the 1005 corporations usual and customary commission for the type of 1006 policy written. 1007 1008 If the producing agent is unwilling or unable to accept 1009 appointment, the new insurer shall pay the agent in accordance 1010 with sub-sub-sub-subparagraph (A). 1011 (II)If the corporation enters into a contractual agreement 1012 for a take-out plan, the producing agent of record of the 1013 corporation policy is entitled to retain any unearned commission 1014 on the policy, and the insurer shall: 1015 (A)Pay to the producing agent of record, for the first 1016 year, an amount that is the greater of the insurers usual and 1017 customary commission for the type of policy written or a fee 1018 equal to the usual and customary commission of the corporation; 1019 or 1020 (B)Offer to allow the producing agent of record to 1021 continue servicing the policy for at least 1 year and offer to 1022 pay the agent the greater of the insurers or the corporations 1023 usual and customary commission for the type of policy written. 1024 1025 If the producing agent is unwilling or unable to accept 1026 appointment, the new insurer shall pay the agent in accordance 1027 with sub-sub-sub-subparagraph (A). 1028 b.Subject to s. 627.3517, with respect to personal lines 1029 residential risks that are not primary residences, if the risk 1030 is offered coverage from an authorized insurer at the insurers 1031 approved rate or from an approved surplus lines insurer at the 1032 rate approved by the office as part of such surplus lines 1033 insurers take-out plan for a new application to the corporation 1034 for coverage, the risk is not eligible for any policy issued by 1035 the corporation unless the premium for coverage from the 1036 authorized insurer or approved surplus lines insurer is more 1037 than 20 percent greater than the premium for comparable coverage 1038 from the corporation. Whenever an offer of coverage for a 1039 personal lines residential risk that is not a primary residence 1040 is received for a policyholder of the corporation at renewal 1041 from an authorized insurer at the insurers approved rate or an 1042 approved surplus lines insurer at the rate approved by the 1043 office as part of such insurers take-out plan, the risk is not 1044 eligible for coverage with the corporation unless the premium 1045 for coverage from the authorized insurer or approved surplus 1046 lines insurer is more than 20 percent greater than the 1047 corporations renewal premium for comparable coverage for 1048 policies that renew on or after July 1, 2024. If the risk is not 1049 able to obtain such offer, the risk is eligible for a standard 1050 policy including wind coverage or a basic policy including wind 1051 coverage issued by the corporation. If the risk could not be 1052 insured under a standard policy including wind coverage 1053 regardless of market conditions, the risk is eligible for a 1054 basic policy including wind coverage unless rejected under 1055 subparagraph 8. The corporation shall determine the type of 1056 policy to be provided on the basis of objective standards 1057 specified in the underwriting manual and based on generally 1058 accepted underwriting practices. A policyholder removed from the 1059 corporation through an assumption agreement does not remain 1060 eligible for coverage from the corporation after the end of the 1061 policy term. However, any policy removed from the corporation 1062 through an assumption agreement remains on the corporations 1063 policy forms through the end of the policy term. 1064 (I)If the risk accepts an offer of coverage through the 1065 market assistance plan or through a mechanism established by the 1066 corporation other than a plan established by s. 627.3518, before 1067 a policy is issued to the risk by the corporation or during the 1068 first 30 days of coverage by the corporation, and the producing 1069 agent who submitted the application to the plan or to the 1070 corporation is not currently appointed by the insurer, the 1071 insurer must: 1072 (A)Pay to the producing agent of record of the policy, for 1073 the first year, an amount that is the greater of the insurers 1074 usual and customary commission for the type of policy written or 1075 a fee equal to the usual and customary commission of the 1076 corporation; or 1077 (B)Offer to allow the producing agent of record of the 1078 policy to continue servicing the policy for at least 1 year and 1079 offer to pay the agent the greater of the insurers or the 1080 corporations usual and customary commission for the type of 1081 policy written. 1082 1083 If the producing agent is unwilling or unable to accept 1084 appointment, the new insurer must pay the agent in accordance 1085 with sub-sub-sub-subparagraph (A). 1086 (II)If the corporation enters into a contractual agreement 1087 for a take-out plan, the producing agent of record of the 1088 corporation policy is entitled to retain any unearned commission 1089 on the policy, and the insurer must: 1090 (A)Pay to the producing agent of record, for the first 1091 year, an amount that is the greater of the insurers usual and 1092 customary commission for the type of policy written or a fee 1093 equal to the usual and customary commission of the corporation; 1094 or 1095 (B)Offer to allow the producing agent of record to 1096 continue servicing the policy for at least 1 year and offer to 1097 pay the agent the greater of the insurers or the corporations 1098 usual and customary commission for the type of policy written. 1099 1100 If the producing agent is unwilling or unable to accept 1101 appointment, the new insurer shall pay the agent in accordance 1102 with sub-sub-sub-subparagraph (A). 1103 c.With respect to commercial lines residential risks, for 1104 a new application to the corporation for coverage, if the risk 1105 is offered coverage under a policy including wind coverage from 1106 an authorized insurer at its approved rate, the risk is not 1107 eligible for a policy issued by the corporation unless the 1108 premium for coverage from the authorized insurer is more than 20 1109 percent greater than the premium for comparable coverage from 1110 the corporation. Whenever an offer of coverage for a commercial 1111 lines residential risk is received for a policyholder of the 1112 corporation at renewal from an authorized insurer, the risk is 1113 not eligible for coverage with the corporation unless the 1114 premium for coverage from the authorized insurer is more than 20 1115 percent greater than the corporations renewal premium for 1116 comparable coverage. If the risk is not able to obtain any such 1117 offer, the risk is eligible for a policy including wind coverage 1118 issued by the corporation. A policyholder removed from the 1119 corporation through an assumption agreement remains eligible for 1120 coverage from the corporation until the end of the policy term. 1121 However, any policy removed from the corporation through an 1122 assumption agreement remains on the corporations policy forms 1123 through the end of the policy term. 1124 (I)If the risk accepts an offer of coverage through the 1125 market assistance plan or through a mechanism established by the 1126 corporation other than a plan established by s. 627.3518, before 1127 a policy is issued to the risk by the corporation or during the 1128 first 30 days of coverage by the corporation, and the producing 1129 agent who submitted the application to the plan or the 1130 corporation is not currently appointed by the insurer, the 1131 insurer shall: 1132 (A)Pay to the producing agent of record of the policy, for 1133 the first year, an amount that is the greater of the insurers 1134 usual and customary commission for the type of policy written or 1135 a fee equal to the usual and customary commission of the 1136 corporation; or 1137 (B)Offer to allow the producing agent of record of the 1138 policy to continue servicing the policy for at least 1 year and 1139 offer to pay the agent the greater of the insurers or the 1140 corporations usual and customary commission for the type of 1141 policy written. 1142 1143 If the producing agent is unwilling or unable to accept 1144 appointment, the new insurer shall pay the agent in accordance 1145 with sub-sub-sub-subparagraph (A). 1146 (II)If the corporation enters into a contractual agreement 1147 for a take-out plan, the producing agent of record of the 1148 corporation policy is entitled to retain any unearned commission 1149 on the policy, and the insurer shall: 1150 (A)Pay to the producing agent of record, for the first 1151 year, an amount that is the greater of the insurers usual and 1152 customary commission for the type of policy written or a fee 1153 equal to the usual and customary commission of the corporation; 1154 or 1155 (B)Offer to allow the producing agent of record to 1156 continue servicing the policy for at least 1 year and offer to 1157 pay the agent the greater of the insurers or the corporations 1158 usual and customary commission for the type of policy written. 1159 1160 If the producing agent is unwilling or unable to accept 1161 appointment, the new insurer shall pay the agent in accordance 1162 with sub-sub-sub-subparagraph (A). 1163 d.For purposes of determining comparable coverage under 1164 sub-subparagraphs a., b., and c., the comparison must be based 1165 on those forms and coverages that are reasonably comparable. The 1166 corporation may rely on a determination of comparable coverage 1167 and premium made by the producing agent who submits the 1168 application to the corporation, made in the agents capacity as 1169 the corporations agent. For purposes of comparing the premium 1170 for comparable coverage under sub-subparagraphs a., b., and c., 1171 premium includes any surcharge or assessment that is actually 1172 applied to such policy. A comparison may be made solely of the 1173 premium with respect to the main building or structure only on 1174 the following basis: the same Coverage A or other building 1175 limits; the same percentage hurricane deductible that applies on 1176 an annual basis or that applies to each hurricane for commercial 1177 residential property; the same percentage of ordinance and law 1178 coverage, if the same limit is offered by both the corporation 1179 and the authorized insurer or the approved surplus lines 1180 insurer; the same mitigation credits, to the extent the same 1181 types of credits are offered both by the corporation and the 1182 authorized insurer or the approved surplus lines insurer; the 1183 same method for loss payment, such as replacement cost or actual 1184 cash value, if the same method is offered both by the 1185 corporation and the authorized insurer in accordance with 1186 underwriting rules; and any other form or coverage that is 1187 reasonably comparable as determined by the board. If an 1188 application is submitted to the corporation for wind-only 1189 coverage on a risk that is located in an area eligible for 1190 coverage by the Florida Windstorm Underwriting Association, as 1191 that area was defined on January 1, 2002, the premium for the 1192 corporations wind-only policy plus the premium for the ex-wind 1193 policy that is offered by an authorized insurer to the applicant 1194 must be compared to the premium for multiperil coverage offered 1195 by an authorized insurer, subject to the standards for 1196 comparison specified in this subparagraph. If the corporation or 1197 the applicant requests from the authorized insurer or the 1198 approved surplus lines insurer a breakdown of the premium of the 1199 offer by types of coverage so that a comparison may be made by 1200 the corporation or its agent and the authorized insurer or the 1201 approved surplus lines insurer refuses or is unable to provide 1202 such information, the corporation may treat the offer as not 1203 being an offer of coverage from an authorized insurer at the 1204 insurers approved rate. 1205 6.Must include rules for classifications of risks and 1206 rates. 1207 7.Must provide that if premium and investment income for 1208 the Citizens account, which are attributable to a particular 1209 calendar year, are in excess of projected losses and expenses 1210 for the Citizens account attributable to that year, such excess 1211 shall be held in surplus in the Citizens account. Such surplus 1212 must be available to defray deficits in the Citizens account as 1213 to future years and used for that purpose before assessing 1214 assessable insurers and assessable insureds as to any calendar 1215 year. 1216 8.Must provide objective criteria and procedures to be 1217 uniformly applied to all applicants in determining whether an 1218 individual risk is so hazardous as to be uninsurable. In making 1219 this determination and in establishing the criteria and 1220 procedures, the following must be considered: 1221 a.Whether the likelihood of a loss for the individual risk 1222 is substantially higher than for other risks of the same class; 1223 and 1224 b.Whether the uncertainty associated with the individual 1225 risk is such that an appropriate premium cannot be determined. 1226 1227 The acceptance or rejection of a risk by the corporation shall 1228 be construed as the private placement of insurance, and the 1229 provisions of chapter 120 do not apply. 1230 9.Must provide that the corporation make its best efforts 1231 to procure catastrophe reinsurance at reasonable rates, to cover 1232 its projected 100-year probable maximum loss as determined by 1233 the board of governors. If catastrophe reinsurance is not 1234 available at reasonable rates, the corporation need not purchase 1235 it, but the corporation shall include the costs of reinsurance 1236 to cover its projected 100-year probable maximum loss in its 1237 rate calculations even if it does not purchase catastrophe 1238 reinsurance. 1239 10.The policies issued by the corporation Must provide in 1240 the corporation policies that if the corporation or the market 1241 assistance plan obtains an offer from an authorized insurer to 1242 cover the risk at its approved rates, the risk is no longer 1243 eligible for renewal through the corporation, except as 1244 otherwise provided in this subsection. 1245 11.Corporation policies and applications Must include in 1246 the corporation policies and applications a notice that the 1247 corporation policy could, under this section, be replaced with a 1248 policy issued by an authorized insurer which does not provide 1249 coverage identical to the coverage provided by the corporation. 1250 The notice must also specify that acceptance of corporation 1251 coverage creates a conclusive presumption that the applicant or 1252 policyholder is aware of this potential. 1253 12.May establish, subject to approval by the office, 1254 different eligibility requirements and operational procedures 1255 for any line or type of coverage for any specified county or 1256 area if the board determines that such changes are justified due 1257 to the voluntary market being sufficiently stable and 1258 competitive in such area or for such line or type of coverage 1259 and that consumers who, in good faith, are unable to obtain 1260 insurance through the voluntary market through ordinary methods 1261 continue to have access to coverage from the corporation. If 1262 coverage is sought in connection with a real property transfer, 1263 the requirements and procedures may not provide an effective 1264 date of coverage later than the date of the closing of the 1265 transfer as established by the transferor, the transferee, and, 1266 if applicable, the lender. 1267 13.Must provide that the corporation appoint as its 1268 licensed agents only those agents who throughout such 1269 appointments also hold an appointment as defined in s. 626.015 1270 by at least three insurers who are authorized to write and are 1271 actually writing or renewing personal lines residential property 1272 coverage, commercial residential property coverage, or 1273 commercial nonresidential property coverage within the state. 1274 For purposes of agents writing or renewing commercial 1275 residential property coverage or commercial nonresidential 1276 property coverage, an agent may satisfy the requirement for any 1277 one or more of the three direct appointments by providing to the 1278 corporation a signed attestation confirming that he or she has 1279 access through a broker to an authorized insurer or eligible 1280 surplus lines insurer authorized to write and actually writing 1281 or renewing commercial residential property coverage or 1282 commercial nonresidential property coverage. However, such 1283 signed attestations do not satisfy the requirements necessary to 1284 write personal lines residential property coverage for the 1285 corporation. 1286 14.Must provide a premium payment plan option to its 1287 policyholders which, at a minimum, allows for quarterly and 1288 semiannual payment of premiums. A monthly payment plan may, but 1289 is not required to, be offered. 1290 15.Must limit coverage on mobile homes or manufactured 1291 homes built before 1994 to actual cash value of the dwelling 1292 rather than replacement costs of the dwelling. 1293 16.Must provide coverage for manufactured or mobile home 1294 dwellings. Such coverage must also include the following 1295 attached structures: 1296 a.Screened enclosures that are aluminum framed or screened 1297 enclosures that are not covered by the same or substantially the 1298 same materials as those of the primary dwelling; 1299 b.Carports that are aluminum or carports that are not 1300 covered by the same or substantially the same materials as those 1301 of the primary dwelling; and 1302 c.Patios that have a roof covering that is constructed of 1303 materials that are not the same or substantially the same 1304 materials as those of the primary dwelling. 1305 1306 The corporation shall make available a policy for mobile homes 1307 or manufactured homes for a minimum insured value of at least 1308 $3,000. 1309 17.May provide such limits of coverage as the board 1310 determines, consistent with the requirements of this subsection. 1311 18.May require commercial property to meet specified 1312 hurricane mitigation construction features as a condition of 1313 eligibility for coverage. 1314 19.Must provide that new or renewal policies issued by the 1315 corporation on or after January 1, 2012, which cover sinkhole 1316 loss do not include coverage for any loss to appurtenant 1317 structures, driveways, sidewalks, decks, or patios that are 1318 directly or indirectly caused by sinkhole activity. The 1319 corporation shall exclude such coverage using a notice of 1320 coverage change, which may be included with the policy renewal, 1321 and not by issuance of a notice of nonrenewal of the excluded 1322 coverage upon renewal of the current policy. 1323 20.a.Must require that the agent obtain from an applicant 1324 for coverage from the corporation an acknowledgment signed by 1325 the applicant, which includes, at a minimum, the following 1326 statement: 1327 ACKNOWLEDGMENT OF POTENTIAL SURCHARGE 1328 AND ASSESSMENT LIABILITY: 1329 1.AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE 1330 CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS 1331 A DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER 1332 REASON, MY POLICY COULD BE SUBJECT TO SURCHARGES AND 1333 ASSESSMENTS, WHICH WILL BE DUE AND PAYABLE UPON RENEWAL, 1334 CANCELLATION, OR TERMINATION OF THE POLICY, AND THAT THE 1335 SURCHARGES AND ASSESSMENTS COULD BE AS HIGH AS 25 PERCENT 1336 OF MY PREMIUM, OR A DIFFERENT AMOUNT AS IMPOSED BY THE 1337 FLORIDA LEGISLATURE. 1338 2.I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER 1339 SURCHARGE, WHICH COULD BE AS HIGH AS 15 PERCENT OF MY 1340 PREMIUM, BY OBTAINING COVERAGE FROM A PRIVATE MARKET 1341 INSURER AND THAT TO BE ELIGIBLE FOR COVERAGE BY CITIZENS, I 1342 MUST FIRST TRY TO OBTAIN PRIVATE MARKET COVERAGE BEFORE 1343 APPLYING FOR OR RENEWING COVERAGE WITH CITIZENS. I 1344 UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES ARE 1345 REGULATED AND APPROVED BY THE STATE. 1346 3.I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY 1347 ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER 1348 INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY 1349 THE FLORIDA LEGISLATURE. 1350 4.I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE 1351 CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT 1352 OF THE STATE OF FLORIDA. 1353 b.The corporation shall maintain, in electronic format or 1354 otherwise, a copy of the applicants signed acknowledgment and 1355 provide a copy of the statement to the policyholder as part of 1356 the first renewal after the effective date of sub-subparagraph 1357 a. 1358 c.The signed acknowledgment form creates a conclusive 1359 presumption that the policyholder understood and accepted his or 1360 her potential surcharge and assessment liability as a 1361 policyholder of the corporation. 1362 21.Must provide that the income of the corporation may not 1363 inure to the benefit of any private person. 1364 Section 19.Subsection (5) of section 626.918, Florida 1365 Statutes, is amended to read: 1366 626.918Eligible surplus lines insurers. 1367 (5)When it appears that any particular insurance risk 1368 which is eligible for export, but on which insurance coverage, 1369 in whole or in part, is not procurable from the eligible surplus 1370 lines insurers, after a search of eligible surplus lines 1371 insurers, then the surplus lines agent may file a supplemental 1372 signed statement setting forth such facts and advising the 1373 office that such part of the risk as shall be unprocurable, as 1374 aforesaid, is being placed with named unauthorized insurers, in 1375 the amounts and percentages set forth in the statement. Such 1376 named unauthorized insurer shall, however, before accepting any 1377 risk in this state, deposit with the department cash or 1378 securities acceptable to the office and department of the market 1379 value of $50,000 for each individual risk, contract, or 1380 certificate, which deposit shall be held by the department for 1381 the benefit of Florida policyholders only; and the surplus lines 1382 agent shall procure from such unauthorized insurer and file with 1383 the office a certified copy of its statement of condition as of 1384 the close of the last calendar year. If such statement reveals, 1385 including both capital and surplus, net assets of at least that 1386 amount required for licensure of a domestic insurer, then the 1387 surplus lines agent may proceed to consummate such contract of 1388 insurance. Whenever any insurance risk, or any part thereof, is 1389 placed with an unauthorized insurer, as provided herein, the 1390 policy, binder, or cover note shall contain a statement signed 1391 by the insured and the agent with the following notation: The 1392 insured is aware that certain insurers participating in this 1393 risk have not been approved to transact business in Florida nor 1394 have they been declared eligible as surplus lines insurers by 1395 the Office of Insurance Regulation of Florida. The placing of 1396 such insurance by a duly licensed surplus lines agent in Florida 1397 shall not be construed as approval of such insurer by the Office 1398 of Insurance Regulation of Florida. Consequently, the insured is 1399 aware that the insured has severely limited the assistance 1400 available under the insurance laws of Florida. The insured is 1401 further aware that he or she may be charged a reasonable per 1402 policy fee, as provided in s. 626.916(2) s. 626.916(4), Florida 1403 Statutes, for each policy certified for export. All other 1404 provisions of this code shall apply to such placement the same 1405 as if such risks were placed with an eligible surplus lines 1406 insurer. 1407 Section 20.Subsection (6) of section 626.9325, Florida 1408 Statutes, is amended to read: 1409 626.9325Service fee. 1410 (6)For the purposes of this section, the term premium 1411 means the consideration for insurance by whatever name called 1412 and includes any assessment, or any membership, policy, survey, 1413 inspection, service, or similar fee or charge in consideration 1414 for an insurance contract, which items are deemed to be a part 1415 of the premium. The per-policy fee authorized by s. 626.916(2) 1416 s. 626.916(4) is specifically included within the meaning of the 1417 term premium. 1418 Section 21.Paragraph (o) of subsection (1) of section 1419 626.9541, Florida Statutes, is amended to read: 1420 626.9541Unfair methods of competition and unfair or 1421 deceptive acts or practices defined. 1422 (1)UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE 1423 ACTS.The following are defined as unfair methods of competition 1424 and unfair or deceptive acts or practices: 1425 (o)Illegal dealings in premiums; excess or reduced charges 1426 for insurance. 1427 1.Knowingly collecting any sum as a premium or charge for 1428 insurance, which is not then provided, or is not in due course 1429 to be provided, subject to acceptance of the risk by the 1430 insurer, by an insurance policy issued by an insurer as 1431 permitted by this code. 1432 2.Knowingly collecting as a premium or charge for 1433 insurance any sum in excess of or less than the premium or 1434 charge applicable to such insurance, in accordance with the 1435 applicable classifications and rates as filed with and approved 1436 by the office, and as specified in the policy; or, in cases when 1437 classifications, premiums, or rates are not required by this 1438 code to be so filed and approved, premiums and charges collected 1439 from a Florida resident in excess of or less than those 1440 specified in the policy and as fixed by the insurer. 1441 Notwithstanding any other provision of law, this provision shall 1442 not be deemed to prohibit the charging and collection, by 1443 surplus lines agents licensed under part VIII of this chapter, 1444 of the amount of applicable state and federal taxes, or fees as 1445 authorized by s. 626.916(2) s. 626.916(4), in addition to the 1446 premium required by the insurer or the charging and collection, 1447 by licensed agents, of the exact amount of any discount or other 1448 such fee charged by a credit card facility in connection with 1449 the use of a credit card, as authorized by subparagraph (q)3., 1450 in addition to the premium required by the insurer. This 1451 subparagraph shall not be construed to prohibit collection of a 1452 premium for a universal life or a variable or indeterminate 1453 value insurance policy made in accordance with the terms of the 1454 contract. 1455 3.a.Imposing or requesting an additional premium for a 1456 policy of motor vehicle liability, personal injury protection, 1457 medical payment, or collision insurance or any combination 1458 thereof or refusing to renew the policy solely because the 1459 insured was involved in a motor vehicle accident unless the 1460 insurers file contains information from which the insurer in 1461 good faith determines that the insured was substantially at 1462 fault in the accident. 1463 b.An insurer which imposes and collects such a surcharge 1464 or which refuses to renew such policy shall, in conjunction with 1465 the notice of premium due or notice of nonrenewal, notify the 1466 named insured that he or she is entitled to reimbursement of 1467 such amount or renewal of the policy under the conditions listed 1468 below and will subsequently reimburse him or her or renew the 1469 policy, if the named insured demonstrates that the operator 1470 involved in the accident was: 1471 (I)Lawfully parked; 1472 (II)Reimbursed by, or on behalf of, a person responsible 1473 for the accident or has a judgment against such person; 1474 (III)Struck in the rear by another vehicle headed in the 1475 same direction and was not convicted of a moving traffic 1476 violation in connection with the accident; 1477 (IV)Hit by a hit-and-run driver, if the accident was 1478 reported to the proper authorities within 24 hours after 1479 discovering the accident; 1480 (V)Not convicted of a moving traffic violation in 1481 connection with the accident, but the operator of the other 1482 automobile involved in such accident was convicted of a moving 1483 traffic violation; 1484 (VI)Finally adjudicated not to be liable by a court of 1485 competent jurisdiction; 1486 (VII)In receipt of a traffic citation which was dismissed 1487 or nolle prossed; or 1488 (VIII)Not at fault as evidenced by a written statement 1489 from the insured establishing facts demonstrating lack of fault 1490 which are not rebutted by information in the insurers file from 1491 which the insurer in good faith determines that the insured was 1492 substantially at fault. 1493 c.In addition to the other provisions of this 1494 subparagraph, an insurer may not fail to renew a policy if the 1495 insured has had only one accident in which he or she was at 1496 fault within the current 3-year period. However, an insurer may 1497 nonrenew a policy for reasons other than accidents in accordance 1498 with s. 627.728. This subparagraph does not prohibit nonrenewal 1499 of a policy under which the insured has had three or more 1500 accidents, regardless of fault, during the most recent 3-year 1501 period. 1502 4.Imposing or requesting an additional premium for, or 1503 refusing to renew, a policy for motor vehicle insurance solely 1504 because the insured committed a noncriminal traffic infraction 1505 as described in s. 318.14 unless the infraction is: 1506 a.A second infraction committed within an 18-month period, 1507 or a third or subsequent infraction committed within a 36-month 1508 period. 1509 b.A violation of s. 316.183, when such violation is a 1510 result of exceeding the lawful speed limit by more than 15 miles 1511 per hour. 1512 5.Upon the request of the insured, the insurer and 1513 licensed agent shall supply to the insured the complete proof of 1514 fault or other criteria which justifies the additional charge or 1515 cancellation. 1516 6.No insurer shall impose or request an additional premium 1517 for motor vehicle insurance, cancel or refuse to issue a policy, 1518 or refuse to renew a policy because the insured or the applicant 1519 is a handicapped or physically disabled person, so long as such 1520 handicap or physical disability does not substantially impair 1521 such persons mechanically assisted driving ability. 1522 7.No insurer may cancel or otherwise terminate any 1523 insurance contract or coverage, or require execution of a 1524 consent to rate endorsement, during the stated policy term for 1525 the purpose of offering to issue, or issuing, a similar or 1526 identical contract or coverage to the same insured with the same 1527 exposure at a higher premium rate or continuing an existing 1528 contract or coverage with the same exposure at an increased 1529 premium. 1530 8.No insurer may issue a nonrenewal notice on any 1531 insurance contract or coverage, or require execution of a 1532 consent to rate endorsement, for the purpose of offering to 1533 issue, or issuing, a similar or identical contract or coverage 1534 to the same insured at a higher premium rate or continuing an 1535 existing contract or coverage at an increased premium without 1536 meeting any applicable notice requirements. 1537 9.No insurer shall, with respect to premiums charged for 1538 motor vehicle insurance, unfairly discriminate solely on the 1539 basis of age, sex, marital status, or scholastic achievement. 1540 10.Imposing or requesting an additional premium for motor 1541 vehicle comprehensive or uninsured motorist coverage solely 1542 because the insured was involved in a motor vehicle accident or 1543 was convicted of a moving traffic violation. 1544 11.No insurer shall cancel or issue a nonrenewal notice on 1545 any insurance policy or contract without complying with any 1546 applicable cancellation or nonrenewal provision required under 1547 the Florida Insurance Code. 1548 12.No insurer shall impose or request an additional 1549 premium, cancel a policy, or issue a nonrenewal notice on any 1550 insurance policy or contract because of any traffic infraction 1551 when adjudication has been withheld and no points have been 1552 assessed pursuant to s. 318.14(9) and (10). However, this 1553 subparagraph does not apply to traffic infractions involving 1554 accidents in which the insurer has incurred a loss due to the 1555 fault of the insured. 1556 Section 22.Paragraph (d) of subsection (1) of section 1557 626.935, Florida Statutes, is amended to read: 1558 626.935Suspension, revocation, or refusal of surplus lines 1559 agents license. 1560 (1)The department shall deny an application for, suspend, 1561 revoke, or refuse to renew the appointment of a surplus lines 1562 agent and all other licenses and appointments held by the 1563 licensee under this code, on any of the following grounds: 1564 (d)Failure to make and file his or her affidavit or 1565 reports when due as required by s. 626.931. 1566 Section 23.Subsection (4) of section 627.715, Florida 1567 Statutes, is amended to read: 1568 627.715Flood insurance.An authorized insurer may issue an 1569 insurance policy, contract, or endorsement providing personal 1570 lines residential coverage for the peril of flood or excess 1571 coverage for the peril of flood on any structure or the contents 1572 of personal property contained therein, subject to this section. 1573 This section does not apply to commercial lines residential or 1574 commercial lines nonresidential coverage for the peril of flood. 1575 An insurer may issue flood insurance policies, contracts, 1576 endorsements, or excess coverage on a standard, preferred, 1577 customized, flexible, or supplemental basis. 1578 (4)An agent may export a contract or an endorsement 1579 providing flood coverage to an eligible surplus lines insurer 1580 without making a diligent effort to seek such coverage from 1581 three or more authorized insurers under s. 626.916 s. 1582 626.916(1)(a). 1583 Section 24.This act shall take effect July 1, 2025.