October 17, 2019
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       Florida Senate - 2010                              CS for SB 876
       
       
       
       By the Committee on Banking and Insurance; and Senators Bennett,
       Dockery, and Hill
       
       
       
       597-03648-10                                           2010876c1
    1                        A bill to be entitled                      
    2         An act relating to residential property insurance;
    3         amending s. 627.062, F.S.; authorizing certain
    4         insurers to use a rate different from otherwise
    5         applicable filed rates; prohibiting the consideration
    6         of certain policies when making a specified
    7         calculation; limiting the maximum average statewide
    8         increase for certain rate filings; preserving the
    9         authority of the Office of Insurance Regulation to
   10         disapprove rates as inadequate or disapprove a rate
   11         filing for using certain rating factors; authorizing
   12         the office to direct an insurer to make a specified
   13         type of rate filing under certain circumstances;
   14         amending s. 627.351, F.S.; providing requirements for
   15         the levy of the Citizens policyholder surcharge;
   16         prohibiting the corporation from levying certain
   17         regular assessments until after levying the full
   18         amount of a Citizens policyholder surcharge; requiring
   19         the corporation’s plan of operation to require agents
   20         to obtain an acknowledgement of potential surcharge
   21         and assessment liability from applicants and
   22         policyholders; requiring the corporation to
   23         permanently retain a copy of such acknowledgments;
   24         specifying that the acknowledgement creates a
   25         conclusive presumption of understanding and acceptance
   26         by the policyholder; creating s. 627.7031, F.S.;
   27         authorizing certain insurers to offer or renew
   28         policies at rates established under certain
   29         circumstances; prohibiting certain insurers from
   30         purchasing TICL option coverage from the Florida
   31         Hurricane Catastrophe Fund under certain
   32         circumstances; requiring that certain policies contain
   33         a specified rate notice; requiring insurers to offer
   34         applicants or insureds an estimate of the premium for
   35         a policy from Citizens Property Insurance Corporation
   36         reflecting similar coverage, limits, and deductibles;
   37         requiring applicants or insureds to provide a signed
   38         premium comparison acknowledgement; specifying
   39         criteria for insurer compliance with certain
   40         requirements; specifying acknowledgement contents;
   41         requiring insurers and agents to retain a copy of the
   42         acknowledgement for a specified time; specifying a
   43         presumption created by a signed acknowledgement;
   44         specifying types of residential property insurance
   45         policies that are not eligible for certain rates or
   46         subject to other requirements; requiring written
   47         notice of certain nonrenewals; preserving insurer
   48         authority to cancel policies; specifying a criterion
   49         for what constitutes an offer to renew a policy;
   50         providing an effective date.
   51  
   52  Be It Enacted by the Legislature of the State of Florida:
   53  
   54         Section 1. Paragraph (l) is added to subsection (2) of
   55  section 627.062, Florida Statutes, to read:
   56         627.062 Rate standards.—
   57         (2) As to all such classes of insurance:
   58         (l)1. An insurer complying with the requirements of s.
   59  627.7031 may use a rate for residential property insurance, as
   60  defined in s. 627.4025, different from the otherwise applicable
   61  filed rate as provided in this paragraph.
   62         2. Policies subject to this paragraph may not be counted in
   63  the calculation under s. 627.171(2).
   64         3. Such rates shall be filed with the office as a separate
   65  filing. The initial rates used by an insurer under this
   66  paragraph may not provide for rates that represent more than a 5
   67  percent statewide average rate increase over the most recently
   68  filed and approved rate. A rate filing made pursuant to this
   69  paragraph submitted in the year following the implementation of
   70  such initial rates may not provide for rates that represent more
   71  than a 10 percent statewide average rate increase in any one
   72  year over the rates in effect under this paragraph at the time
   73  of the filing. A rate filing made pursuant this paragraph
   74  submitted in the second year following the implementation of
   75  such initial rates, or in any subsequent year, may not provide
   76  for rates that represent more than a 15 percent statewide
   77  average rate increase in any one year over the rates in effect
   78  under this paragraph at the time of the filing.
   79         4. This paragraph does not affect the authority of the
   80  office to disapprove a rate as inadequate or to disapprove a
   81  rate filing for charging any insured or applicant a higher
   82  premium solely because of the insured’s or applicant’s race,
   83  color, creed, marital status, sex, or national origin. Upon
   84  finding that an insurer has used any such factor in charging an
   85  insured or applicant a higher premium, the office may direct the
   86  insurer to make a new filing for a new rate that does not use
   87  such factor.
   88  
   89  The provisions of this subsection shall not apply to workers’
   90  compensation and employer’s liability insurance and to motor
   91  vehicle insurance.
   92         Section 2. Paragraphs (g) through (ff) of subsection (6) of
   93  section 627.351, Florida Statutes, are redesignated as
   94  paragraphs (f) through (ee), respectively, present paragraph (f)
   95  of that subsection is redesignated as paragraph (ff), and
   96  paragraphs (b) and (c) of subsection (6) of section 627.351,
   97  Florida Statutes, are amended to read:
   98         627.351 Insurance risk apportionment plans.—
   99         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
  100         (b)1. All insurers authorized to write one or more subject
  101  lines of business in this state are subject to assessment by the
  102  corporation and, for the purposes of this subsection, are
  103  referred to collectively as “assessable insurers.” Insurers
  104  writing one or more subject lines of business in this state
  105  pursuant to part VIII of chapter 626 are not assessable
  106  insurers, but insureds who procure one or more subject lines of
  107  business in this state pursuant to part VIII of chapter 626 are
  108  subject to assessment by the corporation and are referred to
  109  collectively as “assessable insureds.” An authorized insurer’s
  110  assessment liability shall begin on the first day of the
  111  calendar year following the year in which the insurer was issued
  112  a certificate of authority to transact insurance for subject
  113  lines of business in this state and shall terminate 1 year after
  114  the end of the first calendar year during which the insurer no
  115  longer holds a certificate of authority to transact insurance
  116  for subject lines of business in this state.
  117         2.a. All revenues, assets, liabilities, losses, and
  118  expenses of the corporation shall be divided into three separate
  119  accounts as follows:
  120         (I) A personal lines account for personal residential
  121  policies issued by the corporation or issued by the Residential
  122  Property and Casualty Joint Underwriting Association and renewed
  123  by the corporation that provide comprehensive, multiperil
  124  coverage on risks that are not located in areas eligible for
  125  coverage in the Florida Windstorm Underwriting Association as
  126  those areas were defined on January 1, 2002, and for such
  127  policies that do not provide coverage for the peril of wind on
  128  risks that are located in such areas;
  129         (II) A commercial lines account for commercial residential
  130  and commercial nonresidential policies issued by the corporation
  131  or issued by the Residential Property and Casualty Joint
  132  Underwriting Association and renewed by the corporation that
  133  provide coverage for basic property perils on risks that are not
  134  located in areas eligible for coverage in the Florida Windstorm
  135  Underwriting Association as those areas were defined on January
  136  1, 2002, and for such policies that do not provide coverage for
  137  the peril of wind on risks that are located in such areas; and
  138         (III) A high-risk account for personal residential policies
  139  and commercial residential and commercial nonresidential
  140  property policies issued by the corporation or transferred to
  141  the corporation that provide coverage for the peril of wind on
  142  risks that are located in areas eligible for coverage in the
  143  Florida Windstorm Underwriting Association as those areas were
  144  defined on January 1, 2002. The corporation may offer policies
  145  that provide multiperil coverage and the corporation shall
  146  continue to offer policies that provide coverage only for the
  147  peril of wind for risks located in areas eligible for coverage
  148  in the high-risk account. In issuing multiperil coverage, the
  149  corporation may use its approved policy forms and rates for the
  150  personal lines account. An applicant or insured who is eligible
  151  to purchase a multiperil policy from the corporation may
  152  purchase a multiperil policy from an authorized insurer without
  153  prejudice to the applicant’s or insured’s eligibility to
  154  prospectively purchase a policy that provides coverage only for
  155  the peril of wind from the corporation. An applicant or insured
  156  who is eligible for a corporation policy that provides coverage
  157  only for the peril of wind may elect to purchase or retain such
  158  policy and also purchase or retain coverage excluding wind from
  159  an authorized insurer without prejudice to the applicant’s or
  160  insured’s eligibility to prospectively purchase a policy that
  161  provides multiperil coverage from the corporation. It is the
  162  goal of the Legislature that there would be an overall average
  163  savings of 10 percent or more for a policyholder who currently
  164  has a wind-only policy with the corporation, and an ex-wind
  165  policy with a voluntary insurer or the corporation, and who then
  166  obtains a multiperil policy from the corporation. It is the
  167  intent of the Legislature that the offer of multiperil coverage
  168  in the high-risk account be made and implemented in a manner
  169  that does not adversely affect the tax-exempt status of the
  170  corporation or creditworthiness of or security for currently
  171  outstanding financing obligations or credit facilities of the
  172  high-risk account, the personal lines account, or the commercial
  173  lines account. The high-risk account must also include quota
  174  share primary insurance under subparagraph (c)2. The area
  175  eligible for coverage under the high-risk account also includes
  176  the area within Port Canaveral, which is bordered on the south
  177  by the City of Cape Canaveral, bordered on the west by the
  178  Banana River, and bordered on the north by Federal Government
  179  property.
  180         b. The three separate accounts must be maintained as long
  181  as financing obligations entered into by the Florida Windstorm
  182  Underwriting Association or Residential Property and Casualty
  183  Joint Underwriting Association are outstanding, in accordance
  184  with the terms of the corresponding financing documents. When
  185  the financing obligations are no longer outstanding, in
  186  accordance with the terms of the corresponding financing
  187  documents, the corporation may use a single account for all
  188  revenues, assets, liabilities, losses, and expenses of the
  189  corporation. Consistent with the requirement of this
  190  subparagraph and prudent investment policies that minimize the
  191  cost of carrying debt, the board shall exercise its best efforts
  192  to retire existing debt or to obtain approval of necessary
  193  parties to amend the terms of existing debt, so as to structure
  194  the most efficient plan to consolidate the three separate
  195  accounts into a single account. By February 1, 2007, the board
  196  shall submit a report to the Financial Services Commission, the
  197  President of the Senate, and the Speaker of the House of
  198  Representatives which includes an analysis of consolidating the
  199  accounts, the actions the board has taken to minimize the cost
  200  of carrying debt, and its recommendations for executing the most
  201  efficient plan.
  202         c. Creditors of the Residential Property and Casualty Joint
  203  Underwriting Association and of the accounts specified in sub
  204  sub-subparagraphs a.(I) and (II) may have a claim against, and
  205  recourse to, the accounts referred to in sub-sub-subparagraphs
  206  a.(I) and (II) and shall have no claim against, or recourse to,
  207  the account referred to in sub-sub-subparagraph a.(III).
  208  Creditors of the Florida Windstorm Underwriting Association
  209  shall have a claim against, and recourse to, the account
  210  referred to in sub-sub-subparagraph a.(III) and shall have no
  211  claim against, or recourse to, the accounts referred to in sub
  212  sub-subparagraphs a.(I) and (II).
  213         d. Revenues, assets, liabilities, losses, and expenses not
  214  attributable to particular accounts shall be prorated among the
  215  accounts.
  216         e. The Legislature finds that the revenues of the
  217  corporation are revenues that are necessary to meet the
  218  requirements set forth in documents authorizing the issuance of
  219  bonds under this subsection.
  220         f. No part of the income of the corporation may inure to
  221  the benefit of any private person.
  222         3. With respect to a deficit in an account:
  223         a. After accounting for the Citizens policyholder surcharge
  224  imposed under sub-subparagraph i., when the remaining projected
  225  deficit incurred in a particular calendar year is not greater
  226  than 6 percent of the aggregate statewide direct written premium
  227  for the subject lines of business for the prior calendar year,
  228  the entire deficit shall be recovered through regular
  229  assessments of assessable insurers under paragraph (p) and
  230  assessable insureds.
  231         b. After accounting for the Citizens policyholder surcharge
  232  imposed under sub-subparagraph i., when the remaining projected
  233  deficit incurred in a particular calendar year exceeds 6 percent
  234  of the aggregate statewide direct written premium for the
  235  subject lines of business for the prior calendar year, the
  236  corporation shall levy regular assessments on assessable
  237  insurers under paragraph (p) and on assessable insureds in an
  238  amount equal to the greater of 6 percent of the deficit or 6
  239  percent of the aggregate statewide direct written premium for
  240  the subject lines of business for the prior calendar year. Any
  241  remaining deficit shall be recovered through emergency
  242  assessments under sub-subparagraph d.
  243         c. Each assessable insurer’s share of the amount being
  244  assessed under sub-subparagraph a. or sub-subparagraph b. shall
  245  be in the proportion that the assessable insurer’s direct
  246  written premium for the subject lines of business for the year
  247  preceding the assessment bears to the aggregate statewide direct
  248  written premium for the subject lines of business for that year.
  249  The assessment percentage applicable to each assessable insured
  250  is the ratio of the amount being assessed under sub-subparagraph
  251  a. or sub-subparagraph b. to the aggregate statewide direct
  252  written premium for the subject lines of business for the prior
  253  year. Assessments levied by the corporation on assessable
  254  insurers under sub-subparagraphs a. and b. shall be paid as
  255  required by the corporation’s plan of operation and paragraph
  256  (p). Assessments levied by the corporation on assessable
  257  insureds under sub-subparagraphs a. and b. shall be collected by
  258  the surplus lines agent at the time the surplus lines agent
  259  collects the surplus lines tax required by s. 626.932 and shall
  260  be paid to the Florida Surplus Lines Service Office at the time
  261  the surplus lines agent pays the surplus lines tax to the
  262  Florida Surplus Lines Service Office. Upon receipt of regular
  263  assessments from surplus lines agents, the Florida Surplus Lines
  264  Service Office shall transfer the assessments directly to the
  265  corporation as determined by the corporation.
  266         d. Upon a determination by the board of governors that a
  267  deficit in an account exceeds the amount that will be recovered
  268  through regular assessments under sub-subparagraph a. or sub
  269  subparagraph b., plus the amount that is expected to be
  270  recovered through surcharges under sub-subparagraph i., as to
  271  the remaining projected deficit the board shall levy, after
  272  verification by the office, emergency assessments, for as many
  273  years as necessary to cover the deficits, to be collected by
  274  assessable insurers and the corporation and collected from
  275  assessable insureds upon issuance or renewal of policies for
  276  subject lines of business, excluding National Flood Insurance
  277  policies. The amount of the emergency assessment collected in a
  278  particular year shall be a uniform percentage of that year’s
  279  direct written premium for subject lines of business and all
  280  accounts of the corporation, excluding National Flood Insurance
  281  Program policy premiums, as annually determined by the board and
  282  verified by the office. The office shall verify the arithmetic
  283  calculations involved in the board’s determination within 30
  284  days after receipt of the information on which the determination
  285  was based. Notwithstanding any other provision of law, the
  286  corporation and each assessable insurer that writes subject
  287  lines of business shall collect emergency assessments from its
  288  policyholders without such obligation being affected by any
  289  credit, limitation, exemption, or deferment. Emergency
  290  assessments levied by the corporation on assessable insureds
  291  shall be collected by the surplus lines agent at the time the
  292  surplus lines agent collects the surplus lines tax required by
  293  s. 626.932 and shall be paid to the Florida Surplus Lines
  294  Service Office at the time the surplus lines agent pays the
  295  surplus lines tax to the Florida Surplus Lines Service Office.
  296  The emergency assessments so collected shall be transferred
  297  directly to the corporation on a periodic basis as determined by
  298  the corporation and shall be held by the corporation solely in
  299  the applicable account. The aggregate amount of emergency
  300  assessments levied for an account under this sub-subparagraph in
  301  any calendar year may, at the discretion of the board of
  302  governors, be less than but may not exceed the greater of 10
  303  percent of the amount needed to cover the deficit, plus
  304  interest, fees, commissions, required reserves, and other costs
  305  associated with financing of the original deficit, or 10 percent
  306  of the aggregate statewide direct written premium for subject
  307  lines of business and for all accounts of the corporation for
  308  the prior year, plus interest, fees, commissions, required
  309  reserves, and other costs associated with financing the deficit.
  310         e. The corporation may pledge the proceeds of assessments,
  311  projected recoveries from the Florida Hurricane Catastrophe
  312  Fund, other insurance and reinsurance recoverables, policyholder
  313  surcharges and other surcharges, and other funds available to
  314  the corporation as the source of revenue for and to secure bonds
  315  issued under paragraph (p), bonds or other indebtedness issued
  316  under subparagraph (c)3., or lines of credit or other financing
  317  mechanisms issued or created under this subsection, or to retire
  318  any other debt incurred as a result of deficits or events giving
  319  rise to deficits, or in any other way that the board determines
  320  will efficiently recover such deficits. The purpose of the lines
  321  of credit or other financing mechanisms is to provide additional
  322  resources to assist the corporation in covering claims and
  323  expenses attributable to a catastrophe. As used in this
  324  subsection, the term “assessments” includes regular assessments
  325  under sub-subparagraph a., sub-subparagraph b., or subparagraph
  326  (p)1. and emergency assessments under sub-subparagraph d.
  327  Emergency assessments collected under sub-subparagraph d. are
  328  not part of an insurer’s rates, are not premium, and are not
  329  subject to premium tax, fees, or commissions; however, failure
  330  to pay the emergency assessment shall be treated as failure to
  331  pay premium. The emergency assessments under sub-subparagraph d.
  332  shall continue as long as any bonds issued or other indebtedness
  333  incurred with respect to a deficit for which the assessment was
  334  imposed remain outstanding, unless adequate provision has been
  335  made for the payment of such bonds or other indebtedness
  336  pursuant to the documents governing such bonds or other
  337  indebtedness.
  338         f. As used in this subsection for purposes of any deficit
  339  incurred on or after January 25, 2007, the term “subject lines
  340  of business” means insurance written by assessable insurers or
  341  procured by assessable insureds for all property and casualty
  342  lines of business in this state, but not including workers’
  343  compensation or medical malpractice. As used in the sub
  344  subparagraph, the term “property and casualty lines of business”
  345  includes all lines of business identified on Form 2, Exhibit of
  346  Premiums and Losses, in the annual statement required of
  347  authorized insurers by s. 624.424 and any rule adopted under
  348  this section, except for those lines identified as accident and
  349  health insurance and except for policies written under the
  350  National Flood Insurance Program or the Federal Crop Insurance
  351  Program. For purposes of this sub-subparagraph, the term
  352  “workers’ compensation” includes both workers’ compensation
  353  insurance and excess workers’ compensation insurance.
  354         g. The Florida Surplus Lines Service Office shall determine
  355  annually the aggregate statewide written premium in subject
  356  lines of business procured by assessable insureds and shall
  357  report that information to the corporation in a form and at a
  358  time the corporation specifies to ensure that the corporation
  359  can meet the requirements of this subsection and the
  360  corporation’s financing obligations.
  361         h. The Florida Surplus Lines Service Office shall verify
  362  the proper application by surplus lines agents of assessment
  363  percentages for regular assessments and emergency assessments
  364  levied under this subparagraph on assessable insureds and shall
  365  assist the corporation in ensuring the accurate, timely
  366  collection and payment of assessments by surplus lines agents as
  367  required by the corporation.
  368         i.(I) If a deficit is incurred in any account in 2008 or
  369  thereafter, the board of governors shall levy a Citizens
  370  policyholder surcharge against all policyholders of the
  371  corporation.
  372         (II) The Citizens policyholder surcharge for a 12-month
  373  period, which shall be levied collected at the time of issuance
  374  or renewal of a policy, as a uniform percentage of the premium
  375  for the policy of up to 15 percent of such premium, which funds
  376  shall be used to offset the deficit.
  377         (III) The Citizens policyholder surcharge is payable upon
  378  cancellation or termination of the policy, upon renewal of the
  379  policy, or upon issuance of a new policy by Citizens within the
  380  first 12 months after the date of the levy or the period of time
  381  necessary to fully collect the Citizens policyholder surcharge
  382  amount.
  383         (IV) The corporation may not levy any regular assessments
  384  under paragraph (q) pursuant to sub-subparagraph a. or sub
  385  subparagraph b. with respect to a particular year’s deficit
  386  until the corporation has first levied a Citizens policyholder
  387  surcharge under this sub-subparagraph in the full amount
  388  authorized by this sub-subparagraph.
  389         (V) Citizens policyholder surcharges under this sub
  390  subparagraph are not considered premium and are not subject to
  391  commissions, fees, or premium taxes. However, failure to pay
  392  such surcharges shall be treated as failure to pay premium.
  393         j. If the amount of any assessments or surcharges collected
  394  from corporation policyholders, assessable insurers or their
  395  policyholders, or assessable insureds exceeds the amount of the
  396  deficits, such excess amounts shall be remitted to and retained
  397  by the corporation in a reserve to be used by the corporation,
  398  as determined by the board of governors and approved by the
  399  office, to pay claims or reduce any past, present, or future
  400  plan-year deficits or to reduce outstanding debt.
  401         (c) The plan of operation of the corporation:
  402         1. Must provide for adoption of residential property and
  403  casualty insurance policy forms and commercial residential and
  404  nonresidential property insurance forms, which forms must be
  405  approved by the office prior to use. The corporation shall adopt
  406  the following policy forms:
  407         a. Standard personal lines policy forms that are
  408  comprehensive multiperil policies providing full coverage of a
  409  residential property equivalent to the coverage provided in the
  410  private insurance market under an HO-3, HO-4, or HO-6 policy.
  411         b. Basic personal lines policy forms that are policies
  412  similar to an HO-8 policy or a dwelling fire policy that provide
  413  coverage meeting the requirements of the secondary mortgage
  414  market, but which coverage is more limited than the coverage
  415  under a standard policy.
  416         c. Commercial lines residential and nonresidential policy
  417  forms that are generally similar to the basic perils of full
  418  coverage obtainable for commercial residential structures and
  419  commercial nonresidential structures in the admitted voluntary
  420  market.
  421         d. Personal lines and commercial lines residential property
  422  insurance forms that cover the peril of wind only. The forms are
  423  applicable only to residential properties located in areas
  424  eligible for coverage under the high-risk account referred to in
  425  sub-subparagraph (b)2.a.
  426         e. Commercial lines nonresidential property insurance forms
  427  that cover the peril of wind only. The forms are applicable only
  428  to nonresidential properties located in areas eligible for
  429  coverage under the high-risk account referred to in sub
  430  subparagraph (b)2.a.
  431         f. The corporation may adopt variations of the policy forms
  432  listed in sub-subparagraphs a.-e. that contain more restrictive
  433  coverage.
  434         2.a. Must provide that the corporation adopt a program in
  435  which the corporation and authorized insurers enter into quota
  436  share primary insurance agreements for hurricane coverage, as
  437  defined in s. 627.4025(2)(a), for eligible risks, and adopt
  438  property insurance forms for eligible risks which cover the
  439  peril of wind only. As used in this subsection, the term:
  440         (I) “Quota share primary insurance” means an arrangement in
  441  which the primary hurricane coverage of an eligible risk is
  442  provided in specified percentages by the corporation and an
  443  authorized insurer. The corporation and authorized insurer are
  444  each solely responsible for a specified percentage of hurricane
  445  coverage of an eligible risk as set forth in a quota share
  446  primary insurance agreement between the corporation and an
  447  authorized insurer and the insurance contract. The
  448  responsibility of the corporation or authorized insurer to pay
  449  its specified percentage of hurricane losses of an eligible
  450  risk, as set forth in the quota share primary insurance
  451  agreement, may not be altered by the inability of the other
  452  party to the agreement to pay its specified percentage of
  453  hurricane losses. Eligible risks that are provided hurricane
  454  coverage through a quota share primary insurance arrangement
  455  must be provided policy forms that set forth the obligations of
  456  the corporation and authorized insurer under the arrangement,
  457  clearly specify the percentages of quota share primary insurance
  458  provided by the corporation and authorized insurer, and
  459  conspicuously and clearly state that neither the authorized
  460  insurer nor the corporation may be held responsible beyond its
  461  specified percentage of coverage of hurricane losses.
  462         (II) “Eligible risks” means personal lines residential and
  463  commercial lines residential risks that meet the underwriting
  464  criteria of the corporation and are located in areas that were
  465  eligible for coverage by the Florida Windstorm Underwriting
  466  Association on January 1, 2002.
  467         b. The corporation may enter into quota share primary
  468  insurance agreements with authorized insurers at corporation
  469  coverage levels of 90 percent and 50 percent.
  470         c. If the corporation determines that additional coverage
  471  levels are necessary to maximize participation in quota share
  472  primary insurance agreements by authorized insurers, the
  473  corporation may establish additional coverage levels. However,
  474  the corporation’s quota share primary insurance coverage level
  475  may not exceed 90 percent.
  476         d. Any quota share primary insurance agreement entered into
  477  between an authorized insurer and the corporation must provide
  478  for a uniform specified percentage of coverage of hurricane
  479  losses, by county or territory as set forth by the corporation
  480  board, for all eligible risks of the authorized insurer covered
  481  under the quota share primary insurance agreement.
  482         e. Any quota share primary insurance agreement entered into
  483  between an authorized insurer and the corporation is subject to
  484  review and approval by the office. However, such agreement shall
  485  be authorized only as to insurance contracts entered into
  486  between an authorized insurer and an insured who is already
  487  insured by the corporation for wind coverage.
  488         f. For all eligible risks covered under quota share primary
  489  insurance agreements, the exposure and coverage levels for both
  490  the corporation and authorized insurers shall be reported by the
  491  corporation to the Florida Hurricane Catastrophe Fund. For all
  492  policies of eligible risks covered under quota share primary
  493  insurance agreements, the corporation and the authorized insurer
  494  shall maintain complete and accurate records for the purpose of
  495  exposure and loss reimbursement audits as required by Florida
  496  Hurricane Catastrophe Fund rules. The corporation and the
  497  authorized insurer shall each maintain duplicate copies of
  498  policy declaration pages and supporting claims documents.
  499         g. The corporation board shall establish in its plan of
  500  operation standards for quota share agreements which ensure that
  501  there is no discriminatory application among insurers as to the
  502  terms of quota share agreements, pricing of quota share
  503  agreements, incentive provisions if any, and consideration paid
  504  for servicing policies or adjusting claims.
  505         h. The quota share primary insurance agreement between the
  506  corporation and an authorized insurer must set forth the
  507  specific terms under which coverage is provided, including, but
  508  not limited to, the sale and servicing of policies issued under
  509  the agreement by the insurance agent of the authorized insurer
  510  producing the business, the reporting of information concerning
  511  eligible risks, the payment of premium to the corporation, and
  512  arrangements for the adjustment and payment of hurricane claims
  513  incurred on eligible risks by the claims adjuster and personnel
  514  of the authorized insurer. Entering into a quota sharing
  515  insurance agreement between the corporation and an authorized
  516  insurer shall be voluntary and at the discretion of the
  517  authorized insurer.
  518         3. May provide that the corporation may employ or otherwise
  519  contract with individuals or other entities to provide
  520  administrative or professional services that may be appropriate
  521  to effectuate the plan. The corporation shall have the power to
  522  borrow funds, by issuing bonds or by incurring other
  523  indebtedness, and shall have other powers reasonably necessary
  524  to effectuate the requirements of this subsection, including,
  525  without limitation, the power to issue bonds and incur other
  526  indebtedness in order to refinance outstanding bonds or other
  527  indebtedness. The corporation may, but is not required to, seek
  528  judicial validation of its bonds or other indebtedness under
  529  chapter 75. The corporation may issue bonds or incur other
  530  indebtedness, or have bonds issued on its behalf by a unit of
  531  local government pursuant to subparagraph (p)2., in the absence
  532  of a hurricane or other weather-related event, upon a
  533  determination by the corporation, subject to approval by the
  534  office, that such action would enable it to efficiently meet the
  535  financial obligations of the corporation and that such
  536  financings are reasonably necessary to effectuate the
  537  requirements of this subsection. The corporation is authorized
  538  to take all actions needed to facilitate tax-free status for any
  539  such bonds or indebtedness, including formation of trusts or
  540  other affiliated entities. The corporation shall have the
  541  authority to pledge assessments, projected recoveries from the
  542  Florida Hurricane Catastrophe Fund, other reinsurance
  543  recoverables, market equalization and other surcharges, and
  544  other funds available to the corporation as security for bonds
  545  or other indebtedness. In recognition of s. 10, Art. I of the
  546  State Constitution, prohibiting the impairment of obligations of
  547  contracts, it is the intent of the Legislature that no action be
  548  taken whose purpose is to impair any bond indenture or financing
  549  agreement or any revenue source committed by contract to such
  550  bond or other indebtedness.
  551         4.a. Must require that the corporation operate subject to
  552  the supervision and approval of a board of governors consisting
  553  of eight individuals who are residents of this state, from
  554  different geographical areas of this state. The Governor, the
  555  Chief Financial Officer, the President of the Senate, and the
  556  Speaker of the House of Representatives shall each appoint two
  557  members of the board. At least one of the two members appointed
  558  by each appointing officer must have demonstrated expertise in
  559  insurance. The Chief Financial Officer shall designate one of
  560  the appointees as chair. All board members serve at the pleasure
  561  of the appointing officer. All members of the board of governors
  562  are subject to removal at will by the officers who appointed
  563  them. All board members, including the chair, must be appointed
  564  to serve for 3-year terms beginning annually on a date
  565  designated by the plan. However, for the first term beginning on
  566  or after July 1, 2009, each appointing officer shall appoint one
  567  member of the board for a 2-year term and one member for a 3
  568  year term. Any board vacancy shall be filled for the unexpired
  569  term by the appointing officer. The Chief Financial Officer
  570  shall appoint a technical advisory group to provide information
  571  and advice to the board of governors in connection with the
  572  board’s duties under this subsection. The executive director and
  573  senior managers of the corporation shall be engaged by the board
  574  and serve at the pleasure of the board. Any executive director
  575  appointed on or after July 1, 2006, is subject to confirmation
  576  by the Senate. The executive director is responsible for
  577  employing other staff as the corporation may require, subject to
  578  review and concurrence by the board.
  579         b. The board shall create a Market Accountability Advisory
  580  Committee to assist the corporation in developing awareness of
  581  its rates and its customer and agent service levels in
  582  relationship to the voluntary market insurers writing similar
  583  coverage. The members of the advisory committee shall consist of
  584  the following 11 persons, one of whom must be elected chair by
  585  the members of the committee: four representatives, one
  586  appointed by the Florida Association of Insurance Agents, one by
  587  the Florida Association of Insurance and Financial Advisors, one
  588  by the Professional Insurance Agents of Florida, and one by the
  589  Latin American Association of Insurance Agencies; three
  590  representatives appointed by the insurers with the three highest
  591  voluntary market share of residential property insurance
  592  business in the state; one representative from the Office of
  593  Insurance Regulation; one consumer appointed by the board who is
  594  insured by the corporation at the time of appointment to the
  595  committee; one representative appointed by the Florida
  596  Association of Realtors; and one representative appointed by the
  597  Florida Bankers Association. All members must serve for 3-year
  598  terms and may serve for consecutive terms. The committee shall
  599  report to the corporation at each board meeting on insurance
  600  market issues which may include rates and rate competition with
  601  the voluntary market; service, including policy issuance, claims
  602  processing, and general responsiveness to policyholders,
  603  applicants, and agents; and matters relating to depopulation.
  604         5. Must provide a procedure for determining the eligibility
  605  of a risk for coverage, as follows:
  606         a. Subject to the provisions of s. 627.3517, with respect
  607  to personal lines residential risks, if the risk is offered
  608  coverage from an authorized insurer at the insurer’s approved
  609  rate under either a standard policy including wind coverage or,
  610  if consistent with the insurer’s underwriting rules as filed
  611  with the office, a basic policy including wind coverage, for a
  612  new application to the corporation for coverage, the risk is not
  613  eligible for any policy issued by the corporation unless the
  614  premium for coverage from the authorized insurer is more than 15
  615  percent greater than the premium for comparable coverage from
  616  the corporation. If the risk is not able to obtain any such
  617  offer, the risk is eligible for either a standard policy
  618  including wind coverage or a basic policy including wind
  619  coverage issued by the corporation; however, if the risk could
  620  not be insured under a standard policy including wind coverage
  621  regardless of market conditions, the risk shall be eligible for
  622  a basic policy including wind coverage unless rejected under
  623  subparagraph 8. However, with regard to a policyholder of the
  624  corporation or a policyholder removed from the corporation
  625  through an assumption agreement until the end of the assumption
  626  period, the policyholder remains eligible for coverage from the
  627  corporation regardless of any offer of coverage from an
  628  authorized insurer or surplus lines insurer. The corporation
  629  shall determine the type of policy to be provided on the basis
  630  of objective standards specified in the underwriting manual and
  631  based on generally accepted underwriting practices.
  632         (I) If the risk accepts an offer of coverage through the
  633  market assistance plan or an offer of coverage through a
  634  mechanism established by the corporation before a policy is
  635  issued to the risk by the corporation or during the first 30
  636  days of coverage by the corporation, and the producing agent who
  637  submitted the application to the plan or to the corporation is
  638  not currently appointed by the insurer, the insurer shall:
  639         (A) Pay to the producing agent of record of the policy, for
  640  the first year, an amount that is the greater of the insurer’s
  641  usual and customary commission for the type of policy written or
  642  a fee equal to the usual and customary commission of the
  643  corporation; or
  644         (B) Offer to allow the producing agent of record of the
  645  policy to continue servicing the policy for a period of not less
  646  than 1 year and offer to pay the agent the greater of the
  647  insurer’s or the corporation’s usual and customary commission
  648  for the type of policy written.
  649  
  650  If the producing agent is unwilling or unable to accept
  651  appointment, the new insurer shall pay the agent in accordance
  652  with sub-sub-sub-subparagraph (A).
  653         (II) When the corporation enters into a contractual
  654  agreement for a take-out plan, the producing agent of record of
  655  the corporation policy is entitled to retain any unearned
  656  commission on the policy, and the insurer shall:
  657         (A) Pay to the producing agent of record of the corporation
  658  policy, for the first year, an amount that is the greater of the
  659  insurer’s usual and customary commission for the type of policy
  660  written or a fee equal to the usual and customary commission of
  661  the corporation; or
  662         (B) Offer to allow the producing agent of record of the
  663  corporation policy to continue servicing the policy for a period
  664  of not less than 1 year and offer to pay the agent the greater
  665  of the insurer’s or the corporation’s usual and customary
  666  commission for the type of policy written.
  667  
  668  If the producing agent is unwilling or unable to accept
  669  appointment, the new insurer shall pay the agent in accordance
  670  with sub-sub-sub-subparagraph (A).
  671         b. With respect to commercial lines residential risks, for
  672  a new application to the corporation for coverage, if the risk
  673  is offered coverage under a policy including wind coverage from
  674  an authorized insurer at its approved rate, the risk is not
  675  eligible for any policy issued by the corporation unless the
  676  premium for coverage from the authorized insurer is more than 15
  677  percent greater than the premium for comparable coverage from
  678  the corporation. If the risk is not able to obtain any such
  679  offer, the risk is eligible for a policy including wind coverage
  680  issued by the corporation. However, with regard to a
  681  policyholder of the corporation or a policyholder removed from
  682  the corporation through an assumption agreement until the end of
  683  the assumption period, the policyholder remains eligible for
  684  coverage from the corporation regardless of any offer of
  685  coverage from an authorized insurer or surplus lines insurer.
  686         (I) If the risk accepts an offer of coverage through the
  687  market assistance plan or an offer of coverage through a
  688  mechanism established by the corporation before a policy is
  689  issued to the risk by the corporation or during the first 30
  690  days of coverage by the corporation, and the producing agent who
  691  submitted the application to the plan or the corporation is not
  692  currently appointed by the insurer, the insurer shall:
  693         (A) Pay to the producing agent of record of the policy, for
  694  the first year, an amount that is the greater of the insurer’s
  695  usual and customary commission for the type of policy written or
  696  a fee equal to the usual and customary commission of the
  697  corporation; or
  698         (B) Offer to allow the producing agent of record of the
  699  policy to continue servicing the policy for a period of not less
  700  than 1 year and offer to pay the agent the greater of the
  701  insurer’s or the corporation’s usual and customary commission
  702  for the type of policy written.
  703  
  704  If the producing agent is unwilling or unable to accept
  705  appointment, the new insurer shall pay the agent in accordance
  706  with sub-sub-sub-subparagraph (A).
  707         (II) When the corporation enters into a contractual
  708  agreement for a take-out plan, the producing agent of record of
  709  the corporation policy is entitled to retain any unearned
  710  commission on the policy, and the insurer shall:
  711         (A) Pay to the producing agent of record of the corporation
  712  policy, for the first year, an amount that is the greater of the
  713  insurer’s usual and customary commission for the type of policy
  714  written or a fee equal to the usual and customary commission of
  715  the corporation; or
  716         (B) Offer to allow the producing agent of record of the
  717  corporation policy to continue servicing the policy for a period
  718  of not less than 1 year and offer to pay the agent the greater
  719  of the insurer’s or the corporation’s usual and customary
  720  commission for the type of policy written.
  721  
  722  If the producing agent is unwilling or unable to accept
  723  appointment, the new insurer shall pay the agent in accordance
  724  with sub-sub-sub-subparagraph (A).
  725         c. For purposes of determining comparable coverage under
  726  sub-subparagraphs a. and b., the comparison shall be based on
  727  those forms and coverages that are reasonably comparable. The
  728  corporation may rely on a determination of comparable coverage
  729  and premium made by the producing agent who submits the
  730  application to the corporation, made in the agent’s capacity as
  731  the corporation’s agent. A comparison may be made solely of the
  732  premium with respect to the main building or structure only on
  733  the following basis: the same coverage A or other building
  734  limits; the same percentage hurricane deductible that applies on
  735  an annual basis or that applies to each hurricane for commercial
  736  residential property; the same percentage of ordinance and law
  737  coverage, if the same limit is offered by both the corporation
  738  and the authorized insurer; the same mitigation credits, to the
  739  extent the same types of credits are offered both by the
  740  corporation and the authorized insurer; the same method for loss
  741  payment, such as replacement cost or actual cash value, if the
  742  same method is offered both by the corporation and the
  743  authorized insurer in accordance with underwriting rules; and
  744  any other form or coverage that is reasonably comparable as
  745  determined by the board. If an application is submitted to the
  746  corporation for wind-only coverage in the high-risk account, the
  747  premium for the corporation’s wind-only policy plus the premium
  748  for the ex-wind policy that is offered by an authorized insurer
  749  to the applicant shall be compared to the premium for multiperil
  750  coverage offered by an authorized insurer, subject to the
  751  standards for comparison specified in this subparagraph. If the
  752  corporation or the applicant requests from the authorized
  753  insurer a breakdown of the premium of the offer by types of
  754  coverage so that a comparison may be made by the corporation or
  755  its agent and the authorized insurer refuses or is unable to
  756  provide such information, the corporation may treat the offer as
  757  not being an offer of coverage from an authorized insurer at the
  758  insurer’s approved rate.
  759         6. Must include rules for classifications of risks and
  760  rates therefor.
  761         7. Must provide that if premium and investment income for
  762  an account attributable to a particular calendar year are in
  763  excess of projected losses and expenses for the account
  764  attributable to that year, such excess shall be held in surplus
  765  in the account. Such surplus shall be available to defray
  766  deficits in that account as to future years and shall be used
  767  for that purpose prior to assessing assessable insurers and
  768  assessable insureds as to any calendar year.
  769         8. Must provide objective criteria and procedures to be
  770  uniformly applied for all applicants in determining whether an
  771  individual risk is so hazardous as to be uninsurable. In making
  772  this determination and in establishing the criteria and
  773  procedures, the following shall be considered:
  774         a. Whether the likelihood of a loss for the individual risk
  775  is substantially higher than for other risks of the same class;
  776  and
  777         b. Whether the uncertainty associated with the individual
  778  risk is such that an appropriate premium cannot be determined.
  779  
  780  The acceptance or rejection of a risk by the corporation shall
  781  be construed as the private placement of insurance, and the
  782  provisions of chapter 120 shall not apply.
  783         9. Must provide that the corporation shall make its best
  784  efforts to procure catastrophe reinsurance at reasonable rates,
  785  to cover its projected 100-year probable maximum loss as
  786  determined by the board of governors.
  787         10. The policies issued by the corporation must provide
  788  that, if the corporation or the market assistance plan obtains
  789  an offer from an authorized insurer to cover the risk at its
  790  approved rates, the risk is no longer eligible for renewal
  791  through the corporation, except as otherwise provided in this
  792  subsection.
  793         11. Corporation policies and applications must include a
  794  notice that the corporation policy could, under this section, be
  795  replaced with a policy issued by an authorized insurer that does
  796  not provide coverage identical to the coverage provided by the
  797  corporation. The notice shall also specify that acceptance of
  798  corporation coverage creates a conclusive presumption that the
  799  applicant or policyholder is aware of this potential.
  800         12. May establish, subject to approval by the office,
  801  different eligibility requirements and operational procedures
  802  for any line or type of coverage for any specified county or
  803  area if the board determines that such changes to the
  804  eligibility requirements and operational procedures are
  805  justified due to the voluntary market being sufficiently stable
  806  and competitive in such area or for such line or type of
  807  coverage and that consumers who, in good faith, are unable to
  808  obtain insurance through the voluntary market through ordinary
  809  methods would continue to have access to coverage from the
  810  corporation. When coverage is sought in connection with a real
  811  property transfer, such requirements and procedures shall not
  812  provide for an effective date of coverage later than the date of
  813  the closing of the transfer as established by the transferor,
  814  the transferee, and, if applicable, the lender.
  815         13. Must provide that, with respect to the high-risk
  816  account, any assessable insurer with a surplus as to
  817  policyholders of $25 million or less writing 25 percent or more
  818  of its total countrywide property insurance premiums in this
  819  state may petition the office, within the first 90 days of each
  820  calendar year, to qualify as a limited apportionment company. A
  821  regular assessment levied by the corporation on a limited
  822  apportionment company for a deficit incurred by the corporation
  823  for the high-risk account in 2006 or thereafter may be paid to
  824  the corporation on a monthly basis as the assessments are
  825  collected by the limited apportionment company from its insureds
  826  pursuant to s. 627.3512, but the regular assessment must be paid
  827  in full within 12 months after being levied by the corporation.
  828  A limited apportionment company shall collect from its
  829  policyholders any emergency assessment imposed under sub
  830  subparagraph (b)3.d. The plan shall provide that, if the office
  831  determines that any regular assessment will result in an
  832  impairment of the surplus of a limited apportionment company,
  833  the office may direct that all or part of such assessment be
  834  deferred as provided in subparagraph (p)4. However, there shall
  835  be no limitation or deferment of an emergency assessment to be
  836  collected from policyholders under sub-subparagraph (b)3.d.
  837         14. Must provide that the corporation appoint as its
  838  licensed agents only those agents who also hold an appointment
  839  as defined in s. 626.015(3) with an insurer who at the time of
  840  the agent’s initial appointment by the corporation is authorized
  841  to write and is actually writing personal lines residential
  842  property coverage, commercial residential property coverage, or
  843  commercial nonresidential property coverage within the state.
  844         15. Must provide, by July 1, 2007, a premium payment plan
  845  option to its policyholders which allows at a minimum for
  846  quarterly and semiannual payment of premiums. A monthly payment
  847  plan may, but is not required to, be offered.
  848         16. Must limit coverage on mobile homes or manufactured
  849  homes built prior to 1994 to actual cash value of the dwelling
  850  rather than replacement costs of the dwelling.
  851         17. May provide such limits of coverage as the board
  852  determines, consistent with the requirements of this subsection.
  853         18. May require commercial property to meet specified
  854  hurricane mitigation construction features as a condition of
  855  eligibility for coverage.
  856         19.a. Shall require the agent to obtain from any applicant
  857  for coverage the following acknowledgement, signed by the
  858  applicant, and shall require the agent of record to obtain the
  859  following acknowledgment from each corporation policyholder,
  860  signed by the policyholder, prior to the policy’s first renewal
  861  after the effective date of this act:
  862  
  863        ACKNOWLEDGEMENT OF POTENTIAL SURCHARGE AND ASSESSMENT      
  864                             LIABILITY:                            
  865         1. I UNDERSTAND, AS A CITIZENS PROPERTY INSURANCE
  866         CORPORATION POLICYHOLDER, THAT IF THE CORPORATION
  867         SUSTAINS A DEFICIT AS A RESULT OF HURRICANE LOSSES OR
  868         FOR ANY OTHER REASON, MY POLICY COULD BE SUBJECT TO
  869         CITIZENS POLICYHOLDER SURCHARGES, WHICH WOULD BE DUE
  870         AND PAYABLE UPON RENEWAL, CANCELLATION, OR TERMINATION
  871         OF THE POLICY, AND THAT THE SURCHARGES COULD BE AS
  872         HIGH AS 15 PERCENT OF MY PREMIUM FOR DEFICITS IN EACH
  873         OF THREE CITIZENS ACCOUNTS, OR A DIFFERENT AMOUNT AS
  874         ESTABLISHED BY THE FLORIDA LEGISLATURE.
  875         2. I ALSO UNDERSTAND THAT I MAY BE SUBJECT TO
  876         EMERGENCY ASSESSMENTS TO THE SAME EXTENT AS
  877         POLICYHOLDERS OF OTHER INSURANCE COMPANIES.
  878  
  879         b. The corporation shall permanently maintain a signed copy
  880  of the signed acknowledgement required by this subparagraph, and
  881  the agent may also retain a copy.
  882         c. The signed acknowledgement form creates a conclusive
  883  presumption that the policyholder understood and accepted his or
  884  her potential surcharge and assessment liability as a Citizens
  885  policyholder.
  886         Section 3. Section 627.7031, Florida Statutes, is created
  887  to read:
  888         627.7031 Residential property insurance option.—
  889         (1) An insurer holding a certificate of authority to write
  890  property insurance in this state may offer or renew policies at
  891  rates established in accordance with s. 627.062(2)(l), subject
  892  to all of the requirements and prohibitions of this section.
  893         (2) An insurer offering or renewing policies at rates
  894  established in accordance with s. 627.062(2)(l) may not purchase
  895  coverage from the Florida Hurricane Catastrophe Fund under the
  896  temporary increase in coverage limit option under s.
  897  215.555(17).
  898         (3)(a) Before the effective date of a newly issued or
  899  renewal policy at rates established in accordance with s.
  900  627.062(2)(l), the applicant or insured must be given the
  901  following notice, printed in at least 12-point boldfaced type:
  902  
  903         THE RATE FOR THIS POLICY IS NOT SUBJECT TO FULL RATE
  904         REGULATION BY THE FLORIDA OFFICE OF INSURANCE
  905         REGULATION AND MAY BE HIGHER THAN RATES APPROVED BY
  906         THAT OFFICE. A RESIDENTIAL PROPERTY POLICY SUBJECT TO
  907         FULL RATE REGULATION REQUIREMENTS MAY BE AVAILABLE
  908         FROM THIS INSURER, ANOTHER INSURER, OR CITIZENS
  909         PROPERTY INSURANCE CORPORATION. PLEASE DISCUSS YOUR
  910         POLICY OPTIONS WITH AN INSURANCE AGENT WHO CAN PROVIDE
  911         A CITIZENS QUOTE. YOU MAY WISH TO VIEW THE OFFICE OF
  912         INSURANCE REGULATION’S WEBSITE AT
  913         WWW.SHOPANDCOMPARERATES.COM FOR MORE INFORMATION ABOUT
  914         CHOICES AVAILABLE TO YOU.
  915  
  916         (b) For policies renewed at a rate established in
  917  accordance with s. 627.062(2)(l), the notice described in
  918  paragraph (a) must be provided in writing at the same time as
  919  the renewal notice on a document separate from the renewal
  920  notice, but may be contained within the same mailing as the
  921  renewal notice.
  922         (4) Before the effective date of a newly issued policy at
  923  rates established in accordance with s. 627.062(2)(l), or before
  924  the effective date of the first renewal at rates established in
  925  accordance with s. 627.062(2)(l) of a policy originally issued
  926  before the effective date of this section, the applicant or
  927  insured must:
  928         (a) Be provided or offered, for comparison purposes, an
  929  estimate of the premium for a policy from Citizens Property
  930  Insurance Corporation reflecting substantially similar
  931  coverages, limits, and deductibles to the extent available.
  932         (b) Provide the insurer or agent with a signed copy of the
  933  following acknowledgement form, which must be retained by the
  934  insurer or agent for at least 3 years. If the acknowledgement
  935  form is signed by the insured or if the insured remits payment
  936  in the amount of the rate established in accordance with s.
  937  627.062(2)(l) after being mailed or otherwise provided the
  938  acknowledgement form specified in this paragraph, and after
  939  being mailed, otherwise provided, or offered the comparison
  940  specified in paragraph (a), an insurer renewing a policy at such
  941  rate shall be deemed to comply with this section, and it is
  942  presumed that the insured has been informed and understands the
  943  information contained in the comparison and acknowledgement
  944  forms:
  945  
  946                           ACKNOWLEDGEMENT                         
  947         1. I HAVE REVIEWED THE REQUIRED DISCLOSURES AND
  948         THE REQUIRED PREMIUM COMPARISON.
  949         2. I UNDERSTAND THAT THE RATE FOR THIS
  950         RESIDENTIAL PROPERTY INSURANCE POLICY IS NOT SUBJECT
  951         TO FULL RATE REGULATION BY THE FLORIDA OFFICE OF
  952         INSURANCE REGULATION AND MAY BE HIGHER THAN RATES
  953         APPROVED BY THAT OFFICE.
  954         3. I UNDERSTAND THAT A RESIDENTIAL PROPERTY
  955         INSURANCE POLICY SUBJECT TO FULL RATE REGULATION
  956         REQUIREMENTS MAY BE AVAILABLE FROM CITIZENS PROPERTY
  957         INSURANCE CORPORATION.
  958         4. I UNDERSTAND THAT THE FLORIDA OFFICE OF
  959         INSURANCE REGULATION’S WEBSITE
  960         WWW.SHOPANDCOMPARERATES.COM CONTAINS RESIDENTIAL
  961         PROPERTY INSURANCE RATE COMPARISON INFORMATION.
  962         5. I UNDERSTAND THAT IF CITIZENS PROPERTY
  963         INSURANCE CORPORATION INCURS A DEFICIT BECAUSE OF
  964         HURRICANE LOSSES OR OTHER LOSSES, I MAY BE REQUIRED TO
  965         PAY AN ASSESSMENT BASED UPON THE PREMIUM FOR THIS
  966         POLICY AND THAT A POLICYHOLDER OF CITIZENS PROPERTY
  967         INSURANCE CORPORATION MAY BE REQUIRED TO PAY A
  968         DIFFERENT ASSESSMENT.
  969  
  970         (5) The following types of residential property insurance
  971  policies are not eligible for rates established in accordance
  972  with s. 627.062(2)(l) and are not subject to the other
  973  provisions of this section:
  974         (a) Residential property insurance policies that exclude
  975  coverage for the perils of windstorm or hurricane.
  976         (b) Residential property insurance policies that are
  977  subject to a consent decree, agreement, understanding, or other
  978  arrangement between the insurer and the office relating to rates
  979  or premiums for policies removed from Citizens Property
  980  Insurance Corporation.
  981         (6) Notwithstanding s. 627.4133, an insurer that has issued
  982  a policy under this section shall provide the named insured
  983  written notice of nonrenewal at least 180 days before the
  984  effective date of the nonrenewal as to subsequent nonrenewals.
  985  However, this subsection does not prohibit an insurer from
  986  cancelling a policy as permitted under s. 627.4133. The offer of
  987  a policy at rates authorized by this section constitutes an
  988  offer to renew the policy at the rates specified in the offer
  989  and does not constitute a nonrenewal.
  990         Section 4. This act shall take effect January 1, 2011.

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