Florida Senate - 2021 SB 1574 By Senator Brandes 24-00876F-21 20211574__ Page 1 of 52 CODING: Words stricken are deletions; words underlined are additions. A bill to be entitled 1

An act relating to Citizens Property Insurance 2 Corporation; amending s. 627.021, F.S.; revising 3 applicability; amending s. 627.351, F.S.; revising the 4 method for determining the amounts of potential 5 surcharges to be levied against policyholders under 6 certain circumstances; requiring the corporation to 7 levy an annual legal expenses surcharge; revising 8 conditions for eligibility for coverage with the 9 corporation to require a certain minimum premium; 10 specifying a limit for agent commission rates; 11 revising the application of annual rate increase 12 limits to certain policies issued by the corporation; 13 requiring a property owner to provide proof of current 14 homestead exemption to remain eligible for coverage 15 subject to certain limitations on rate increases; 16 providing that eligible surplus lines insurers may 17 participate, in the same manner and on the same terms 18 as an authorized insurer, in depopulation, take-out, 19 or keep-out programs relating to policies removed from 20 Citizens Property Insurance Corporation; providing 21 certain exceptions, conditions, and requirements 22 relating to such participation by a surplus lines 23 insurer in the corporation’s depopulation, take-out, 24 or keep-out programs; providing thresholds for 25 eligibility for coverage by the corporation for risks 26 offered coverage from qualified surplus lines 27 insurers; authorizing information from underwriting 28 files and confidential claims files to be released by 29

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 2 of 52 CODING: Words stricken are deletions; words underlined are additions. the corporation to specified entities considering 30 writing or underwriting risks insured by the 31 corporation under certain circumstances; specifying 32 that only the corporation’s transfer of a policy file 33 to an insurer, as opposed to the transfer of any file, 34 changes the file’s public record status; making 35 technical changes; amending s. 627.3517, F.S.; making 36 technical changes; amending s. 627.3518, F.S., and 37 reenacting subsections (6) and (7), relating to the 38 Citizens Property Insurance Corporation policyholder 39 eligibility clearinghouse program, to incorporate the 40 amendments made to s. 627.351, F.S., in references 41 thereto; conforming provisions to changes made by the 42 act; providing an effective date. 43 44 Be It Enacted by the Legislature of the State of Florida: 45 46

Section 1. Subsection (2) of

section 627.021, Florida 47 Statutes, is amended to read: 48 627.021 Scope of this part.— 49

(2) This part does not apply to: 50 (

a) Reinsurance, except joint reinsurance as provided in s. 51 627.311. 52 (

b) Insurance against loss of or damage to aircraft, their 53 hulls, accessories, or equipment, or against liability, other 54 than workers’ compensation and employer’s liability, arising out 55 of the ownership, maintenance, or use of aircraft. 56 (

c) Insurance of vessels or craft, their cargoes, marine 57 builders’ risks, marine protection and indemnity, or other risks 58

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 3 of 52 CODING: Words stricken are deletions; words underlined are additions. commonly insured under marine insurance policies. 59 (

d) Commercial inland marine insurance. 60 (

e) Except as may be specifically stated to apply, surplus 61 lines insurance placed under the provisions of ss. 626.913-62 626.937. 63

Section 2. Paragraphs (b), (c), (n), (q), and (

x) of 64 subsection (6) of

section 627.351, Florida Statutes, are amended 65 to read: 66 627.351 Insurance risk apportionment plans.— 67

(6) CITIZENS PROPERTY INSURANCE CORPORATION.— 68 (b)1. All insurers authorized to write one or more subject 69 lines of business in this state are subject to assessment by the 70 corporation and, for the purposes of this subsection, are 71 referred to collectively as “assessable insurers.” Insurers 72 writing one or more subject lines of business in this state 73 pursuant to

part VIII of

chapter 626 are not assessable 74 insurers; however, insureds who procure one or more subject 75 lines of business in this state pursuant to

part VIII of

chapter 76 626 are subject to assessment by the corporation and are 77 referred to collectively as “assessable insureds.” An insurer’s 78 assessment liability begins on the first day of the calendar 79 year following the year in which the insurer was issued a 80 certificate of authority to transact insurance for subject lines 81 of business in this state and terminates 1 year after the end of 82 the first calendar year during which the insurer no longer holds 83 a certificate of authority to transact insurance for subject 84 lines of business in this state. 85 2.a. All revenues, assets, liabilities, losses, and 86 expenses of the corporation shall be divided into three separate 87

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 4 of 52 CODING: Words stricken are deletions; words underlined are additions. accounts as follows: 88 (

I) A personal lines account for personal residential 89 policies issued by the corporation which provides comprehensive, 90 multiperil coverage on risks that are not located in areas 91 eligible for coverage by the Florida Windstorm Underwriting 92 Association as those areas were defined on January 1, 2002, and 93 for policies that do not provide coverage for the peril of wind 94 on risks that are located in such areas; 95 (II) A commercial lines account for commercial residential 96 and commercial nonresidential policies issued by the corporation 97 which provides coverage for basic property perils on risks that 98 are not located in areas eligible for coverage by the Florida 99 Windstorm Underwriting Association as those areas were defined 100 on January 1, 2002, and for policies that do not provide 101 coverage for the peril of wind on risks that are located in such 102 areas; and 103 (III) A coastal account for personal residential policies 104 and commercial residential and commercial nonresidential 105 property policies issued by the corporation which provides 106 coverage for the peril of wind on risks that are located in 107 areas eligible for coverage by the Florida Windstorm 108 Underwriting Association as those areas were defined on January 109 1, 2002.

The corporation may offer policies that provide 110 multiperil coverage and shall offer policies that provide 111 coverage only for the peril of wind for risks located in areas 112 eligible for coverage in the coastal account. Effective July 1, 113 2014, the corporation shall cease offering new commercial 114 residential policies providing multiperil coverage and shall 115 instead continue to offer commercial residential wind-only 116

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 5 of 52 CODING: Words stricken are deletions; words underlined are additions. policies, and may offer commercial residential policies 117 excluding wind. The corporation may, however, continue to renew 118 a commercial residential multiperil policy on a building that is 119 insured by the corporation on June 30, 2014, under a multiperil 120 policy. In issuing multiperil coverage, the corporation may use 121 its approved policy forms and rates for the personal lines 122 account.

An applicant or insured who is eligible to purchase a 123 multiperil policy from the corporation may purchase a multiperil 124 policy from an authorized insurer without prejudice to the 125 applicant’s or insured’s eligibility to prospectively purchase a 126 policy that provides coverage only for the peril of wind from 127 the corporation.

An applicant or insured who is eligible for a 128 corporation policy that provides coverage only for the peril of 129 wind may elect to purchase or retain such policy and also 130 purchase or retain coverage excluding wind from an authorized 131 insurer without prejudice to the applicant’s or insured’s 132 eligibility to prospectively purchase a policy that provides 133 multiperil coverage from the corporation.

It is the goal of the 134 Legislature that there be an overall average savings of 10 135 percent or more for a policyholder who currently has a wind-only 136 policy with the corporation, and an ex-wind policy with a 137 voluntary insurer or the corporation, and who obtains a 138 multiperil policy from the corporation.

It is the intent of the 139 Legislature that the offer of multiperil coverage in the coastal 140 account be made and implemented in a manner that does not 141 adversely affect the tax-exempt status of the corporation or 142 creditworthiness of or security for currently outstanding 143 financing obligations or credit facilities of the coastal 144 account, the personal lines account, or the commercial lines 145

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 6 of 52 CODING: Words stricken are deletions; words underlined are additions. account. The coastal account must also include quota share 146 primary insurance under subparagraph (c)2. The area eligible for 147 coverage under the coastal account also includes the area within 148 Port Canaveral, which is bordered on the south by the City of 149 Cape Canaveral, bordered on the west by the Banana River, and 150 bordered on the north by Federal Government property. 151 b.

The three separate accounts must be maintained as long 152 as financing obligations entered into by the Florida Windstorm 153 Underwriting Association or Residential Property and Casualty 154 Joint Underwriting Association are outstanding, in accordance 155 with the terms of the corresponding financing documents. If the 156 financing obligations are no longer outstanding, the corporation 157 may use a single account for all revenues, assets, liabilities, 158 losses, and expenses of the corporation.

Consistent with this 159 subparagraph and prudent investment policies that minimize the 160 cost of carrying debt, the board shall exercise its best efforts 161 to retire existing debt or obtain the approval of necessary 162 parties to amend the terms of existing debt, so as to structure 163 the most efficient plan for consolidating the three separate 164 accounts into a single account. 165 c. Creditors of the Residential Property and Casualty Joint 166 Underwriting Association and the accounts specified in sub-sub-167 subparagraphs a.(

I) and (II) may have a claim against, and 168 recourse to, those accounts and no claim against, or recourse 169 to, the account referred to in sub-sub-subparagraph a.(III). 170 Creditors of the Florida Windstorm Underwriting Association have 171 a claim against, and recourse to, the account referred to in 172 sub-sub-subparagraph a.(III) and no claim against, or recourse 173 to, the accounts referred to in sub-sub-subparagraphs a.(

I) and 174

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 7 of 52 CODING: Words stricken are deletions; words underlined are additions. (II). 175 d. Revenues, assets, liabilities, losses, and expenses not 176 attributable to particular accounts shall be prorated among the 177 accounts. 178 e. The Legislature finds that the revenues of the 179 corporation are revenues that are necessary to meet the 180 requirements set forth in documents authorizing the issuance of 181 bonds under this subsection. 182 f. The income of the corporation may not inure to the 183 benefit of any private person. 184 3.

With respect to a deficit in an account: 185 a. After accounting for the Citizens policyholder surcharge 186 imposed under sub-subparagraph i., if the remaining projected 187 deficit incurred in the coastal account in a particular calendar 188 year: 189 (

I) Is not greater than 2 percent of the aggregate 190 statewide direct written premium for the subject lines of 191 business for the prior calendar year, the entire deficit shall 192 be recovered through regular assessments of assessable insurers 193 under paragraph (

q) and assessable insureds. 194 (II) Exceeds 2 percent of the aggregate statewide direct 195 written premium for the subject lines of business for the prior 196 calendar year, the corporation shall levy regular assessments on 197 assessable insurers under paragraph (

q) and on assessable 198 insureds in an amount equal to the greater of 2 percent of the 199 projected deficit or 2 percent of the aggregate statewide direct 200 written premium for the subject lines of business for the prior 201 calendar year. Any remaining projected deficit shall be 202 recovered through emergency assessments under sub-subparagraph 203

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 8 of 52 CODING: Words stricken are deletions; words underlined are additions. d. 204 b. Each assessable insurer’s share of the amount being 205 assessed under sub-subparagraph a. must be in the proportion 206 that the assessable insurer’s direct written premium for the 207 subject lines of business for the year preceding the assessment 208 bears to the aggregate statewide direct written premium for the 209 subject lines of business for that year.

The assessment 210 percentage applicable to each assessable insured is the ratio of 211 the amount being assessed under sub-subparagraph a. to the 212 aggregate statewide direct written premium for the subject lines 213 of business for the prior year. Assessments levied by the 214 corporation on assessable insurers under sub-subparagraph a. 215 must be paid as required by the corporation’s plan of operation 216 and paragraph (q).

Assessments levied by the corporation on 217 assessable insureds under sub-subparagraph a. shall be collected 218 by the surplus lines agent at the time the surplus lines agent 219 collects the surplus lines tax required by s. 626.932, and paid 220 to the Florida Surplus Lines Service Office at the time the 221 surplus lines agent pays the surplus lines tax to that office. 222 Upon receipt of regular assessments from surplus lines agents, 223 the Florida Surplus Lines Service Office shall transfer the 224 assessments directly to the corporation as determined by the 225 corporation. 226 c.

After accounting for the Citizens policyholder surcharge 227 imposed under sub-subparagraph i., the remaining projected 228 deficits in the personal lines account and in the commercial 229 lines account in a particular calendar year shall be recovered 230 through emergency assessments under sub-subparagraph d. 231 d. Upon a determination by the board of governors that a 232

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 9 of 52 CODING: Words stricken are deletions; words underlined are additions. projected deficit in an account exceeds the amount that is 233 expected to be recovered through regular assessments under sub-234 subparagraph a., plus the amount that is expected to be 235 recovered through surcharges under sub-subparagraph i., the 236 board, after verification by the office, shall levy emergency 237 assessments for as many years as necessary to cover the 238 deficits, to be collected by assessable insurers and the 239 corporation and collected from assessable insureds upon issuance 240 or renewal of policies for subject lines of business, excluding 241 National Flood Insurance policies.

The amount collected in a 242 particular year must be a uniform percentage of that year’s 243 direct written premium for subject lines of business and all 244 accounts of the corporation, excluding National Flood Insurance 245 Program policy premiums, as annually determined by the board and 246 verified by the office. The office shall verify the arithmetic 247 calculations involved in the board’s determination within 30 248 days after receipt of the information on which the determination 249 was based.

The office shall notify assessable insurers and the 250 Florida Surplus Lines Service Office of the date on which 251 assessable insurers shall begin to collect and assessable 252 insureds shall begin to pay such assessment. The date must be at 253 least 90 days after the date the corporation levies emergency 254 assessments pursuant to this sub-subparagraph.

Notwithstanding 255 any other provision of law, the corporation and each assessable 256 insurer that writes subject lines of business shall collect 257 emergency assessments from its policyholders without such 258 obligation being affected by any credit, limitation, exemption, 259 or deferment. Emergency assessments levied by the corporation on 260 assessable insureds shall be collected by the surplus lines 261

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 10 of 52 CODING: Words stricken are deletions; words underlined are additions. agent at the time the surplus lines agent collects the surplus 262 lines tax required by s. 626.932 and paid to the Florida Surplus 263 Lines Service Office at the time the surplus lines agent pays 264 the surplus lines tax to that office. The emergency assessments 265 collected shall be transferred directly to the corporation on a 266 periodic basis as determined by the corporation and held by the 267 corporation solely in the applicable account.

The aggregate 268 amount of emergency assessments levied for an account in any 269 calendar year may be less than but may not exceed the greater of 270 10 percent of the amount needed to cover the deficit, plus 271 interest, fees, commissions, required reserves, and other costs 272 associated with financing the original deficit, or 10 percent of 273 the aggregate statewide direct written premium for subject lines 274 of business and all accounts of the corporation for the prior 275 year, plus interest, fees, commissions, required reserves, and 276 other costs associated with financing the deficit. 277 e.

The corporation may pledge the proceeds of assessments, 278 projected recoveries from the Florida Hurricane Catastrophe 279 Fund, other insurance and reinsurance recoverables, policyholder 280 surcharges and other surcharges, and other funds available to 281 the corporation as the source of revenue for and to secure bonds 282 issued under paragraph (q), bonds or other indebtedness issued 283 under subparagraph (c)3., or lines of credit or other financing 284 mechanisms issued or created under this subsection, or to retire 285 any other debt incurred as a result of deficits or events giving 286 rise to deficits, or in any other way that the board determines 287 will efficiently recover such deficits.

The purpose of the lines 288 of credit or other financing mechanisms is to provide additional 289 resources to assist the corporation in covering claims and 290

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 11 of 52 CODING: Words stricken are deletions; words underlined are additions. expenses attributable to a catastrophe. As used in this 291 subsection, the term “assessments” includes regular assessments 292 under sub-subparagraph a. or subparagraph (q)1. and emergency 293 assessments under sub-subparagraph d.

Emergency assessments 294 collected under sub-subparagraph d. are not part of an insurer’s 295 rates, are not premium, and are not subject to premium tax, 296 fees, or commissions; however, failure to pay the emergency 297 assessment shall be treated as failure to pay premium.

The 298 emergency assessments shall continue as long as any bonds issued 299 or other indebtedness incurred with respect to a deficit for 300 which the assessment was imposed remain outstanding, unless 301 adequate provision has been made for the payment of such bonds 302 or other indebtedness pursuant to the documents governing such 303 bonds or indebtedness. 304 f.

As used in this subsection for purposes of any deficit 305 incurred on or after January 25, 2007, the term “subject lines 306 of business” means insurance written by assessable insurers or 307 procured by assessable insureds for all property and casualty 308 lines of business in this state, but not including workers’ 309 compensation or medical malpractice.

As used in this sub-310 subparagraph, the term “property and casualty lines of business” 311 includes all lines of business identified on Form 2, Exhibit of 312 Premiums and Losses, in the annual statement required of 313 authorized insurers under s. 624.424 and any rule adopted under 314 this section, except for those lines identified as accident and 315 health insurance and except for policies written under the 316 National Flood Insurance Program or the Federal Crop Insurance 317 Program. For purposes of this sub-subparagraph, the term 318 “workers’ compensation” includes both workers’ compensation 319

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 12 of 52 CODING: Words stricken are deletions; words underlined are additions. insurance and excess workers’ compensation insurance. 320 g. The Florida Surplus Lines Service Office shall determine 321 annually the aggregate statewide written premium in subject 322 lines of business procured by assessable insureds and report 323 that information to the corporation in a form and at a time the 324 corporation specifies to ensure that the corporation can meet 325 the requirements of this subsection and the corporation’s 326 financing obligations. 327 h.

The Florida Surplus Lines Service Office shall verify 328 the proper application by surplus lines agents of assessment 329 percentages for regular assessments and emergency assessments 330 levied under this subparagraph on assessable insureds and assist 331 the corporation in ensuring the accurate, timely collection and 332 payment of assessments by surplus lines agents as required by 333 the corporation. 334 i. Upon determination by the board of governors that an 335 account has a projected deficit, the board shall levy a Citizens 336 policyholder surcharge against all policyholders of the 337 corporation. 338 (

I) The surcharge shall be levied as a uniform percentage 339 of the premium for the policy of up to 15 percent of such 340 premium, which funds shall be used to offset the deficit, as 341 follows: 342 (

A) If the total number of policyholders of the corporation 343 is less than 1 million, a surcharge of 15 percent of the premium 344 shall be levied. 345 (

B) If the total number of policyholders of the corporation 346 is at least 1 million but less than 1.5 million policyholders, a 347 surcharge of 20 percent of the premium shall be levied. 348

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 13 of 52 CODING: Words stricken are deletions; words underlined are additions. (

C) If the total number of policyholders of the corporation 349 is at least 1.5 million, a surcharge of 25 percent of the 350 premium shall be levied. 351 (II) The surcharge is payable upon cancellation or 352 termination of the policy, upon renewal of the policy, or upon 353 issuance of a new policy by the corporation within the first 12 354 months after the date of the levy or the period of time 355 necessary to fully collect the surcharge amount. 356 (III) The corporation may not levy any regular assessments 357 under paragraph (

q) pursuant to sub-subparagraph a. or sub-358 subparagraph b. with respect to a particular year’s deficit 359 until the corporation has first levied the full amount of the 360 surcharge authorized by this sub-subparagraph. 361 (IV) The surcharge is not considered premium and is not 362 subject to commissions, fees, or premium taxes. However, failure 363 to pay the surcharge shall be treated as failure to pay premium. 364 j.

If the amount of any assessments or surcharges collected 365 from corporation policyholders, assessable insurers or their 366 policyholders, or assessable insureds exceeds the amount of the 367 deficits, such excess amounts shall be remitted to and retained 368 by the corporation in a reserve to be used by the corporation, 369 as determined by the board of governors and approved by the 370 office, to pay claims or reduce any past, present, or future 371 plan-year deficits or to reduce outstanding debt. 372 4.

After accounting for the rate limitations specified in 373 subparagraph (n)6., any remaining deficit in legal expenses must 374 be recovered through an annual Citizens policyholder legal 375 expenses surcharge against all policyholders of the corporation. 376 The surcharge must be levied as a uniform percentage of the 377

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 14 of 52 CODING: Words stricken are deletions; words underlined are additions. premium for the policy. The surcharge is payable upon issuance 378 of a new policy by the corporation and upon each subsequent 379 renewal of the policy. The surcharge is not considered premium 380 and is not subject to commissions, fees, or premium taxes. 381 However, failure to pay the surcharge must be treated as failure 382 to pay premium. 383 (

c) The corporation’s plan of operation: 384 1. Must provide for adoption of residential property and 385 casualty insurance policy forms and commercial residential and 386 nonresidential property insurance forms, which must be approved 387 by the office before use. The corporation shall adopt the 388 following policy forms: 389 a. Standard personal lines policy forms that are 390 comprehensive multiperil policies providing full coverage of a 391 residential property equivalent to the coverage provided in the 392 private insurance market under an HO-3, HO-4, or HO-6 policy. 393 b.

Basic personal lines policy forms that are policies 394 similar to an HO-8 policy or a dwelling fire policy that provide 395 coverage meeting the requirements of the secondary mortgage 396 market, but which is more limited than the coverage under a 397 standard policy. 398 c. Commercial lines residential and nonresidential policy 399 forms that are generally similar to the basic perils of full 400 coverage obtainable for commercial residential structures and 401 commercial nonresidential structures in the admitted voluntary 402 market. 403 d.

Personal lines and commercial lines residential property 404 insurance forms that cover the peril of wind only. The forms are 405 applicable only to residential properties located in areas 406

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 15 of 52 CODING: Words stricken are deletions; words underlined are additions. eligible for coverage under the coastal account referred to in 407 sub-subparagraph (b)2.a. 408 e. Commercial lines nonresidential property insurance forms 409 that cover the peril of wind only. The forms are applicable only 410 to nonresidential properties located in areas eligible for 411 coverage under the coastal account referred to in sub-412 subparagraph (b)2.a. 413 f.

The corporation may adopt variations of the policy forms 414 listed in sub-subparagraphs a.-e. which contain more restrictive 415 coverage. 416 g. Effective January 1, 2013, the corporation shall offer a 417 basic personal lines policy similar to an HO-8 policy with 418 dwelling repair based on common construction materials and 419 methods. 420 2.

Must provide that the corporation adopt a program in 421 which the corporation and authorized insurers enter into quota 422 share primary insurance agreements for hurricane coverage, as 423 defined in s. 627.4025(2)(a), for eligible risks, and adopt 424 property insurance forms for eligible risks which cover the 425 peril of wind only. 426 a. As used in this subsection, the term: 427 (I) “Quota share primary insurance” means an arrangement in 428 which the primary hurricane coverage of an eligible risk is 429 provided in specified percentages by the corporation and an 430 authorized insurer.

The corporation and authorized insurer are 431 each solely responsible for a specified percentage of hurricane 432 coverage of an eligible risk as set forth in a quota share 433 primary insurance agreement between the corporation and an 434 authorized insurer and the insurance contract. The 435

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 16 of 52 CODING: Words stricken are deletions; words underlined are additions. responsibility of the corporation or authorized insurer to pay 436 its specified percentage of hurricane losses of an eligible 437 risk, as set forth in the agreement, may not be altered by the 438 inability of the other party to pay its specified percentage of 439 losses.

Eligible risks that are provided hurricane coverage 440 through a quota share primary insurance arrangement must be 441 provided policy forms that set forth the obligations of the 442 corporation and authorized insurer under the arrangement, 443 clearly specify the percentages of quota share primary insurance 444 provided by the corporation and authorized insurer, and 445 conspicuously and clearly state that the authorized insurer and 446 the corporation may not be held responsible beyond their 447 specified percentage of coverage of hurricane losses. 448 (II) “Eligible risks” means personal lines residential and 449 commercial lines residential risks that meet the underwriting 450 criteria of the corporation and are located in areas that were 451 eligible for coverage by the Florida Windstorm Underwriting 452 Association on January 1, 2002. 453 b.

The corporation may enter into quota share primary 454 insurance agreements with authorized insurers at corporation 455 coverage levels of 90 percent and 50 percent. 456 c. If the corporation determines that additional coverage 457 levels are necessary to maximize participation in quota share 458 primary insurance agreements by authorized insurers, the 459 corporation may establish additional coverage levels. However, 460 the corporation’s quota share primary insurance coverage level 461 may not exceed 90 percent. 462 d.

Any quota share primary insurance agreement entered into 463 between an authorized insurer and the corporation must provide 464

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 17 of 52 CODING: Words stricken are deletions; words underlined are additions. for a uniform specified percentage of coverage of hurricane 465 losses, by county or territory as set forth by the corporation 466 board, for all eligible risks of the authorized insurer covered 467 under the agreement. 468 e. Any quota share primary insurance agreement entered into 469 between an authorized insurer and the corporation is subject to 470 review and approval by the office.

However, such agreement shall 471 be authorized only as to insurance contracts entered into 472 between an authorized insurer and an insured who is already 473 insured by the corporation for wind coverage. 474 f. For all eligible risks covered under quota share primary 475 insurance agreements, the exposure and coverage levels for both 476 the corporation and authorized insurers shall be reported by the 477 corporation to the Florida Hurricane Catastrophe Fund.

For all 478 policies of eligible risks covered under such agreements, the 479 corporation and the authorized insurer must maintain complete 480 and accurate records for the purpose of exposure and loss 481 reimbursement audits as required by fund rules. The corporation 482 and the authorized insurer shall each maintain duplicate copies 483 of policy declaration pages and supporting claims documents. 484 g.

The corporation board shall establish in its plan of 485 operation standards for quota share agreements which ensure that 486 there is no discriminatory application among insurers as to the 487 terms of the agreements, pricing of the agreements, incentive 488 provisions if any, and consideration paid for servicing policies 489 or adjusting claims. 490 h. The quota share primary insurance agreement between the 491 corporation and an authorized insurer must set forth the 492 specific terms under which coverage is provided, including, but 493

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 18 of 52 CODING: Words stricken are deletions; words underlined are additions. not limited to, the sale and servicing of policies issued under 494 the agreement by the insurance agent of the authorized insurer 495 producing the business, the reporting of information concerning 496 eligible risks, the payment of premium to the corporation, and 497 arrangements for the adjustment and payment of hurricane claims 498 incurred on eligible risks by the claims adjuster and personnel 499 of the authorized insurer.

Entering into a quota sharing 500 insurance agreement between the corporation and an authorized 501 insurer is voluntary and at the discretion of the authorized 502 insurer. 503 3. May provide that the corporation may employ or otherwise 504 contract with individuals or other entities to provide 505 administrative or professional services that may be appropriate 506 to effectuate the plan.

The corporation may borrow funds by 507 issuing bonds or by incurring other indebtedness, and shall have 508 other powers reasonably necessary to effectuate the requirements 509 of this subsection, including, without limitation, the power to 510 issue bonds and incur other indebtedness in order to refinance 511 outstanding bonds or other indebtedness. The corporation may 512 seek judicial validation of its bonds or other indebtedness 513 under

chapter 75. The corporation may issue bonds or incur other 514 indebtedness, or have bonds issued on its behalf by a unit of 515 local government pursuant to subparagraph (q)2. in the absence 516 of a hurricane or other weather-related event, upon a 517 determination by the corporation, subject to approval by the 518 office, that such action would enable it to efficiently meet the 519 financial obligations of the corporation and that such 520 financings are reasonably necessary to effectuate the 521 requirements of this subsection. The corporation may take all 522

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 19 of 52 CODING: Words stricken are deletions; words underlined are additions. actions needed to facilitate tax-free status for such bonds or 523 indebtedness, including formation of trusts or other affiliated 524 entities. The corporation may pledge assessments, projected 525 recoveries from the Florida Hurricane Catastrophe Fund, other 526 reinsurance recoverables, policyholder surcharges and other 527 surcharges, and other funds available to the corporation as 528 security for bonds or other indebtedness. In recognition of s. 529 10, Art.

I of the State Constitution, prohibiting the impairment 530 of obligations of contracts, it is the intent of the Legislature 531 that no action be taken whose purpose is to impair any bond 532 indenture or financing agreement or any revenue source committed 533 by contract to such bond or other indebtedness. 534 4.

Must require that the corporation operate subject to the 535 supervision and approval of a board of governors consisting of 536 nine individuals who are residents of this state and who are 537 from different geographical areas of this the state, one of whom 538 is appointed by the Governor and serves solely to advocate on 539 behalf of the consumer. The appointment of a consumer 540 representative by the Governor is deemed to be within the scope 541 of the exemption provided in s. 112.313(7)(

b) and is in addition 542 to the appointments authorized under sub-subparagraph a. 543 a. The Governor, the Chief Financial Officer, the President 544 of the Senate, and the Speaker of the House of Representatives 545 shall each appoint two members of the board. At least one of the 546 two members appointed by each appointing officer must have 547 demonstrated expertise in insurance and be deemed to be within 548 the scope of the exemption provided in s. 112.313(7)(b). The 549 Chief Financial Officer shall designate one of the appointees as 550 chair. All board members serve at the pleasure of the appointing 551

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 20 of 52 CODING: Words stricken are deletions; words underlined are additions. officer. All members of the board are subject to removal at will 552 by the officers who appointed them. All board members, including 553 the chair, must be appointed to serve for 3-year terms beginning 554 annually on a date designated by the plan. However, for the 555 first term beginning on or after July 1, 2009, each appointing 556 officer shall appoint one member of the board for a 2-year term 557 and one member for a 3-year term.

A board vacancy shall be 558 filled for the unexpired term by the appointing officer. The 559 Chief Financial Officer shall appoint a technical advisory group 560 to provide information and advice to the board in connection 561 with the board’s duties under this subsection. The executive 562 director and senior managers of the corporation shall be engaged 563 by the board and serve at the pleasure of the board. Any 564 executive director appointed on or after July 1, 2006, is 565 subject to confirmation by the Senate.

The executive director is 566 responsible for employing other staff as the corporation may 567 require, subject to review and concurrence by the board. 568 b. The board shall create a Market Accountability Advisory 569 Committee to assist the corporation in developing awareness of 570 its rates and its customer and agent service levels in 571 relationship to the voluntary market insurers writing similar 572 coverage. 573 (

I) The members of the advisory committee consist of the 574 following 11 persons, one of whom must be elected chair by the 575 members of the committee: four representatives, one appointed by 576 the Florida Association of Insurance Agents, one by the Florida 577 Association of Insurance and Financial Advisors, one by the 578 Professional Insurance Agents of Florida, and one by the Latin 579 American Association of Insurance Agencies; three 580

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 21 of 52 CODING: Words stricken are deletions; words underlined are additions. representatives appointed by the insurers with the three highest 581 voluntary market share of residential property insurance 582 business in this the state; one representative from the Office 583 of Insurance Regulation; one consumer appointed by the board who 584 is insured by the corporation at the time of appointment to the 585 committee; one representative appointed by the Florida 586 Association of Realtors; and one representative appointed by the 587 Florida Bankers Association.

All members shall be appointed to 588 3-year terms and may serve for consecutive terms. 589 (II) The committee shall report to the corporation at each 590 board meeting on insurance market issues that which may include 591 rates and rate competition with the voluntary market; service, 592 including policy issuance, claims processing, and general 593 responsiveness to policyholders, applicants, and agents; and 594 matters relating to depopulation. 595 5. Must provide a procedure for determining the eligibility 596 of a risk for coverage, as follows: 597 a.

Subject to s. 627.3517, with respect to personal lines 598 residential risks, if the risk is offered coverage from an 599 authorized insurer at the insurer’s approved rate under a 600 standard policy including wind coverage or, if consistent with 601 the insurer’s underwriting rules as filed with the office, a 602 basic policy including wind coverage, for a new application to 603 the corporation for coverage, the risk is not eligible for any 604 policy issued by the corporation unless the premium for coverage 605 from the authorized insurer is more than 15 percent greater than 606 the premium for comparable coverage from the corporation. 607 Whenever an offer of coverage for a personal lines residential 608 risk is received for a policyholder of the corporation at 609

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 22 of 52 CODING: Words stricken are deletions; words underlined are additions. renewal from an authorized insurer, if the offer is equal to or 610 less than the corporation’s renewal premium for comparable 611 coverage, the risk is not eligible for coverage with the 612 corporation unless the premium for comparable coverage from the 613 authorized insurer is more than 15 percent greater than the 614 premium for nonhomestead personal residential properties under 615 subparagraph (n)1.

If the risk is not able to obtain such offer, 616 the risk is eligible for a standard policy including wind 617 coverage or a basic policy including wind coverage issued by the 618 corporation; however, if the risk could not be insured under a 619 standard policy including wind coverage regardless of market 620 conditions, the risk is eligible for a basic policy including 621 wind coverage unless rejected under subparagraph 8. However, a 622 policyholder removed from the corporation through an assumption 623 agreement remains eligible for coverage from the corporation 624 until the end of the assumption period.

The corporation shall 625 determine the type of policy to be provided on the basis of 626 objective standards specified in the underwriting manual and 627 based on generally accepted underwriting practices. 628 (

I) If the risk accepts an offer of coverage through the 629 market assistance plan or through a mechanism established by the 630 corporation other than a plan established by s. 627.3518, before 631 a policy is issued to the risk by the corporation or during the 632 first 30 days of coverage by the corporation, and the producing 633 agent who submitted the application to the plan or to the 634 corporation is not currently appointed by the insurer, the 635 insurer shall: 636 (

A) Pay to the producing agent of record of the policy for 637 the first year, an amount that is the greater of the insurer’s 638

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 23 of 52 CODING: Words stricken are deletions; words underlined are additions. usual and customary commission for the type of policy written or 639 a fee equal to the usual and customary commission of the 640 corporation; or 641 (

B) Offer to allow the producing agent of record of the 642 policy to continue servicing the policy for at least 1 year and 643 offer to pay the agent the greater of the insurer’s or the 644 corporation’s usual and customary commission for the type of 645 policy written. 646 647 If the producing agent is unwilling or unable to accept 648 appointment, the new insurer shall pay the agent in accordance 649 with sub-sub-sub-subparagraph (A). 650 (II) If the corporation enters into a contractual agreement 651 for a take-out plan, the producing agent of record of the 652 corporation policy is entitled to retain any unearned commission 653 on the policy, and the insurer shall: 654 (

A) Pay to the producing agent of record, for the first 655 year, an amount that is the greater of the insurer’s usual and 656 customary commission for the type of policy written or a fee 657 equal to the usual and customary commission of the corporation; 658 or 659 (

B) Offer to allow the producing agent of record to 660 continue servicing the policy for at least 1 year and offer to 661 pay the agent the greater of the insurer’s or the corporation’s 662 usual and customary commission for the type of policy written. 663 664 If the producing agent is unwilling or unable to accept 665 appointment, the new insurer shall pay the agent in accordance 666 with sub-sub-sub-subparagraph (A). 667

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 24 of 52 CODING: Words stricken are deletions; words underlined are additions. b. With respect to commercial lines residential risks, for 668 a new application to the corporation for coverage, if the risk 669 is offered coverage under a policy including wind coverage from 670 an authorized insurer at its approved rate, the risk is not 671 eligible for a policy issued by the corporation unless the 672 premium for coverage from the authorized insurer is more than 15 673 percent greater than the premium for comparable coverage from 674 the corporation.

Whenever an offer of coverage for a commercial 675 lines residential risk is received for a policyholder of the 676 corporation at renewal from an authorized insurer, if the offer 677 is equal to or less than the corporation’s renewal premium for 678 comparable coverage, the risk is not eligible for coverage with 679 the corporation. If the risk is not able to obtain any such 680 offer, the risk is eligible for a policy including wind coverage 681 issued by the corporation.

However, a policyholder removed from 682 the corporation through an assumption agreement remains eligible 683 for coverage from the corporation until the end of the 684 assumption period. 685 (

I) If the risk accepts an offer of coverage through the 686 market assistance plan or through a mechanism established by the 687 corporation other than a plan established by s. 627.3518, before 688 a policy is issued to the risk by the corporation or during the 689 first 30 days of coverage by the corporation, and the producing 690 agent who submitted the application to the plan or the 691 corporation is not currently appointed by the insurer, the 692 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

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 25 of 52 CODING: Words stricken are deletions; words underlined are additions. 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 at least 1 year and 700 offer to pay the agent the greater of the insurer’s or the 701 corporation’s usual and customary commission for the type of 702 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) If the corporation enters into a contractual agreement 708 for a take-out plan, the producing agent of record of the 709 corporation policy is entitled to retain any unearned commission 710 on the policy, and the insurer shall: 711 (

A) Pay to the producing agent of record, for the first 712 year, an amount that is the greater of the insurer’s usual and 713 customary commission for the type of policy written or a fee 714 equal to the usual and customary commission of the corporation; 715 or 716 (

B) Offer to allow the producing agent of record to 717 continue servicing the policy for at least 1 year and offer to 718 pay the agent the greater of the insurer’s or the corporation’s 719 usual and customary commission for the type of policy written. 720 721 If the producing agent is unwilling or unable to accept 722 appointment, the new insurer shall pay the agent in accordance 723 with sub-sub-sub-subparagraph (A). 724 c. For purposes of determining comparable coverage under 725

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 26 of 52 CODING: Words stricken are deletions; words underlined are additions. sub-subparagraphs a. and b., the comparison must be based on 726 those forms and coverages that are reasonably comparable. The 727 corporation may rely on a determination of comparable coverage 728 and premium made by the producing agent who submits the 729 application to the corporation, made in the agent’s capacity as 730 the corporation’s agent.

A comparison may be made solely of the 731 premium with respect to the main building or structure only on 732 the following basis: the same coverage A or other building 733 limits; the same percentage hurricane deductible that applies on 734 an annual basis or that applies to each hurricane for commercial 735 residential property; the same percentage of ordinance and law 736 coverage, if the same limit is offered by both the corporation 737 and the authorized insurer; the same mitigation credits, to the 738 extent the same types of credits are offered both by the 739 corporation and the authorized insurer; the same method for loss 740 payment, such as replacement cost or actual cash value, if the 741 same method is offered both by the corporation and the 742 authorized insurer in accordance with underwriting rules; and 743 any other form or coverage that is reasonably comparable as 744 determined by the board.

If an application is submitted to the 745 corporation for wind-only coverage in the coastal account, the 746 premium for the corporation’s wind-only policy plus the premium 747 for the ex-wind policy that is offered by an authorized insurer 748 to the applicant must be compared to the premium for multiperil 749 coverage offered by an authorized insurer, subject to the 750 standards for comparison specified in this subparagraph.

If the 751 corporation or the applicant requests from the authorized 752 insurer a breakdown of the premium of the offer by types of 753 coverage so that a comparison may be made by the corporation or 754

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 27 of 52 CODING: Words stricken are deletions; words underlined are additions. its agent and the authorized insurer refuses or is unable to 755 provide such information, the corporation may treat the offer as 756 not being an offer of coverage from an authorized insurer at the 757 insurer’s approved rate. 758 6. Must include rules for classifications of risks and 759 rates. 760 7.

Must provide that if premium and investment income for 761 an account attributable to a particular calendar year are in 762 excess of projected losses and expenses for the account 763 attributable to that year, such excess shall be held in surplus 764 in the account. Such surplus must be available to defray 765 deficits in that account as to future years and used for that 766 purpose before assessing assessable insurers and assessable 767 insureds as to any calendar year. 768 8.

Must provide objective criteria and procedures to be 769 uniformly applied to all applicants in determining whether an 770 individual risk is so hazardous as to be uninsurable. In making 771 this determination and in establishing the criteria and 772 procedures, the following must be considered: 773 a. Whether the likelihood of a loss for the individual risk 774 is substantially higher than for other risks of the same class; 775 and 776 b.

Whether the uncertainty associated with the individual 777 risk is such that an appropriate premium cannot be determined. 778 779 The acceptance or rejection of a risk by the corporation shall 780 be construed as the private placement of insurance, and the 781 provisions of

chapter 120 does do not apply. 782 9. Must provide that the corporation make its best efforts 783

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 28 of 52 CODING: Words stricken are deletions; words underlined are additions. to procure catastrophe reinsurance at reasonable rates, to cover 784 its projected 100-year probable maximum loss as determined by 785 the board of governors. 786 10.

The policies issued by the corporation must provide 787 that if the corporation or the market assistance plan obtains an 788 offer from an authorized insurer to cover the risk at its 789 approved rates, the risk is no longer eligible for renewal 790 through the corporation, except as otherwise provided in this 791 subsection. 792 11. Corporation policies and applications must include a 793 notice that the corporation policy could, under this section, be 794 replaced with a policy issued by an authorized insurer which 795 does not provide coverage identical to the coverage provided by 796 the corporation.

The notice must also specify that acceptance of 797 corporation coverage creates a conclusive presumption that the 798 applicant or policyholder is aware of this potential. 799 12.

May establish, subject to approval by the office, 800 different eligibility requirements and operational procedures 801 for any line or type of coverage for any specified county or 802 area if the board determines that such changes are justified due 803 to the voluntary market being sufficiently stable and 804 competitive in such area or for such line or type of coverage 805 and that consumers who, in good faith, are unable to obtain 806 insurance through the voluntary market through ordinary methods 807 continue to have access to coverage from the corporation.

If 808 coverage is sought in connection with a real property transfer, 809 the requirements and procedures may not provide an effective 810 date of coverage later than the date of the closing of the 811 transfer as established by the transferor, the transferee, and, 812

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 29 of 52 CODING: Words stricken are deletions; words underlined are additions. if applicable, the lender. 813 13. Must provide that, with respect to the coastal account, 814 any assessable insurer with a surplus as to policyholders of $25 815 million or less writing 25 percent or more of its total 816 countrywide property insurance premiums in this state may 817 petition the office, within the first 90 days of each calendar 818 year, to qualify as a limited apportionment company.

A regular 819 assessment levied by the corporation on a limited apportionment 820 company for a deficit incurred by the corporation for the 821 coastal account may be paid to the corporation on a monthly 822 basis as the assessments are collected by the limited 823 apportionment company from its insureds, but a limited 824 apportionment company must begin collecting the regular 825 assessments not later than 90 days after the regular assessments 826 are levied by the corporation, and the regular assessments must 827 be paid in full within 15 months after being levied by the 828 corporation.

A limited apportionment company shall collect from 829 its policyholders any emergency assessment imposed under sub-830 subparagraph (b)3.d. The plan must 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 (q)4. However, an emergency 835 assessment to be collected from policyholders under sub-836 subparagraph (b)3.d. may not be limited or deferred. 837 14.

Must provide that the corporation appoint as its 838 licensed agents only those agents who throughout such 839 appointments also hold an appointment as defined in s. 626.015 840 by an insurer who is authorized to write and is actually writing 841

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 30 of 52 CODING: Words stricken are deletions; words underlined are additions. or renewing personal lines residential property coverage, 842 commercial residential property coverage, or commercial 843 nonresidential property coverage within this the state. 844 15. Must provide a premium payment plan option to its 845 policyholders which, at a minimum, allows for quarterly and 846 semiannual payment of premiums. A monthly payment plan may, but 847 is not required to, be offered. 848 16.

Must limit coverage on mobile homes or manufactured 849 homes built before 1994 to actual cash value of the dwelling 850 rather than replacement costs of the dwelling. 851 17. Must provide coverage for manufactured or mobile home 852 dwellings. Such coverage must also include the following 853 attached structures: 854 a. Screened enclosures that are aluminum framed or screened 855 enclosures that are not covered by the same or substantially the 856 same materials as those of the primary dwelling; 857 b.

Carports that are aluminum or carports that are not 858 covered by the same or substantially the same materials as those 859 of the primary dwelling; and 860 c. Patios that have a roof covering that is constructed of 861 materials that are not the same or substantially the same 862 materials as those of the primary dwelling. 863 864 The corporation shall make available a policy for mobile homes 865 or manufactured homes for a minimum insured value of at least 866 $3,000. 867 18. May provide such limits of coverage as the board 868 determines, consistent with the requirements of this subsection. 869 19.

May require commercial property to meet specified 870

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 31 of 52 CODING: Words stricken are deletions; words underlined are additions. hurricane mitigation construction features as a condition of 871 eligibility for coverage. 872 20. Must provide that new or renewal policies issued by the 873 corporation on or after January 1, 2012, which cover sinkhole 874 loss do not include coverage for any loss to appurtenant 875 structures, driveways, sidewalks, decks, or patios that are 876 directly or indirectly caused by sinkhole activity.

The 877 corporation shall exclude such coverage using a notice of 878 coverage change, which may be included with the policy renewal, 879 and not by issuance of a notice of nonrenewal of the excluded 880 coverage upon renewal of the current policy. 881 21. As of January 1, 2012, must require that the agent 882 obtain from an applicant for coverage from the corporation an 883 acknowledgment signed by the applicant, which includes, at a 884 minimum, the following statement: 885 886 ACKNOWLEDGMENT OF POTENTIAL SURCHARGE 887 AND ASSESSMENT LIABILITY: 888 889 1.

AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE 890 CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A 891 DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON, 892 MY POLICY COULD BE SUBJECT TO SURCHARGES, WHICH WILL BE DUE AND 893 PAYABLE UPON RENEWAL, CANCELLATION, OR TERMINATION OF THE 894 POLICY, AND THAT THE SURCHARGES COULD BE AS HIGH AS 45 PERCENT 895 OF MY PREMIUM, OR A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA 896 LEGISLATURE. 897 2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER 898 SURCHARGE, WHICH COULD BE AS HIGH AS 45 PERCENT OF MY PREMIUM, 899

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 32 of 52 CODING: Words stricken are deletions; words underlined are additions. BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND THAT TO 900 BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN 901 PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR RENEWING COVERAGE 902 WITH CITIZENS. I UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES 903 ARE REGULATED AND APPROVED BY THE STATE. 904 3.

I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY 905 ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER 906 INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE 907 FLORIDA LEGISLATURE. 908 4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE 909 CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE 910 STATE OF FLORIDA. 911 912 a.

The corporation shall maintain, in electronic format or 913 otherwise, a copy of the applicant’s signed acknowledgment and 914 provide a copy of the statement to the policyholder as part of 915 the first renewal after the effective date of this subparagraph. 916 b. The signed acknowledgment form creates a conclusive 917 presumption that the policyholder understood and accepted his or 918 her potential surcharge and assessment liability as a 919 policyholder of the corporation. 920 22.

The corporation shall pay a producing agent of record a 921 reasonable commission not to exceed the average of commissions 922 paid in the preceding year by the 20 admitted insurers writing 923 the greatest market share of property insurance in this state. 924 (n)1. Rates for coverage provided by the corporation must 925 be actuarially sound and subject to s. 627.062, except as 926 otherwise provided in this paragraph. The corporation shall file 927 its recommended rates with the office at least annually. The 928

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 33 of 52 CODING: Words stricken are deletions; words underlined are additions. corporation shall provide any additional information regarding 929 the rates which the office requires. The office shall consider 930 the recommendations of the board and issue a final order 931 establishing the rates for the corporation within 45 days after 932 the recommended rates are filed. The corporation may not pursue 933 an administrative challenge or judicial review of the final 934 order of the office. 935 2.

In addition to the rates otherwise determined pursuant 936 to this paragraph, the corporation shall impose and collect an 937 amount equal to the premium tax provided in s. 624.509 to 938 augment the financial resources of the corporation. 939 3. After The public hurricane loss-projection model under 940 s. 627.06281, if has been found to be accurate and reliable by 941 the Florida Commission on Hurricane Loss Projection Methodology, 942 the model shall be considered when establishing the windstorm 943 portion of the corporation’s rates.

The corporation may use the 944 public model results in combination with the results of private 945 models to calculate rates for the windstorm portion of the 946 corporation’s rates. This subparagraph does not require or allow 947 the corporation to adopt rates lower than the rates otherwise 948 required or allowed by this paragraph. 949 4. The rate filings for the corporation which were approved 950 by the office and took effect January 1, 2007, are rescinded, 951 except for those rates that were lowered.

As soon as possible, 952 the corporation shall begin using the lower rates that were in 953 effect on December 31, 2006, and provide refunds to 954 policyholders who paid higher rates as a result of that rate 955 filing. The rates in effect on December 31, 2006, remain in 956 effect for the 2007 and 2008 calendar years except for any rate 957

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 34 of 52 CODING: Words stricken are deletions; words underlined are additions. change that results in a lower rate. The next rate change that 958 may increase rates shall take effect pursuant to a new rate 959 filing recommended by the corporation and established by the 960 office, subject to this paragraph. 961 5.

Beginning on July 15, 2009, and annually thereafter, the 962 corporation must make a recommended actuarially sound rate 963 filing for each personal and commercial line of business it 964 writes, to be effective no earlier than January 1, 2010. 965 6.

Beginning on or after January 1, 2022 January 1, 2010, 966 and notwithstanding the board’s recommended rates and the 967 office’s final order regarding the corporation’s filed rates 968 under subparagraph 1., the corporation shall annually implement 969 a rate increase which, except for sinkhole coverage, does not 970 exceed 10 percent for any single policy renewed issued by the 971 corporation covering a homestead personal residential property 972 that has a dwelling replacement cost below $700,000 or that is a 973 single condominium unit that has a combined dwelling and 974 contents replacement cost below $700,000, excluding coverage 975 changes and surcharges, if the policy was initially issued by 976 the corporation before July 1, 2021.

Upon renewal, a property 977 owner must provide proof of a current Florida homestead 978 exemption to the corporation to remain eligible for coverage 979 provided pursuant to this subparagraph. 980 7. The corporation may also implement an increase to 981 reflect the effect on the corporation of the cash buildup factor 982 pursuant to s. 215.555(5)(b). 983 8. The corporation’s implementation of rates as prescribed 984 in subparagraph 6. shall cease for any line of business written 985 by the corporation upon the corporation’s implementation of 986

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 35 of 52 CODING: Words stricken are deletions; words underlined are additions. actuarially sound rates. Thereafter, the corporation shall 987 annually make a recommended actuarially sound rate filing for 988 each commercial and personal line of business the corporation 989 writes. 990 (q)1.

The corporation shall certify to the office its needs 991 for annual assessments as to a particular calendar year, and for 992 any interim assessments that it deems to be necessary to sustain 993 operations as to a particular year pending the receipt of annual 994 assessments. Upon verification, the office shall approve such 995 certification, and the corporation shall levy such annual or 996 interim assessments. Such assessments shall be prorated as 997 provided in paragraph (b).

The corporation shall take all 998 reasonable and prudent steps necessary to collect the amount of 999 assessments due from each assessable insurer, including, if 1000 prudent, filing suit to collect the assessments, and the office 1001 may provide such assistance to the corporation it deems 1002 appropriate.

If the corporation is unable to collect an 1003 assessment from any assessable insurer, the uncollected 1004 assessments shall be levied as an additional assessment against 1005 the assessable insurers and any assessable insurer required to 1006 pay an additional assessment as a result of such failure to pay 1007 shall have a cause of action against such nonpaying assessable 1008 insurer. Assessments shall be included as an appropriate factor 1009 in the making of rates.

The failure of a surplus lines agent to 1010 collect and remit any regular or emergency assessment levied by 1011 the corporation is considered to be a violation of s. 626.936 1012 and subjects the surplus lines agent to the penalties provided 1013 in that section. 1014 2. The governing body of any unit of local government, any 1015

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 36 of 52 CODING: Words stricken are deletions; words underlined are additions. residents of which are insured by the corporation, may issue 1016 bonds as defined in s. 125.013 or s. 166.101 from time to time 1017 to fund an assistance program, in conjunction with the 1018 corporation, for the purpose of defraying deficits of the 1019 corporation.

In order to avoid needless and indiscriminate 1020 proliferation, duplication, and fragmentation of such assistance 1021 programs, any unit of local government, any residents of which 1022 are insured by the corporation, may provide for the payment of 1023 losses, regardless of whether or not the losses occurred within 1024 or outside of the territorial jurisdiction of the local 1025 government. Revenue bonds under this subparagraph may not be 1026 issued until validated pursuant to

chapter 75, unless a state of 1027 emergency is declared by executive order or proclamation of the 1028 Governor pursuant to s. 252.36 making such findings as are 1029 necessary to determine that it is in the best interests of, and 1030 necessary for, the protection of the public health, safety, and 1031 general welfare of residents of this state and declaring it an 1032 essential public purpose to permit certain municipalities or 1033 counties to issue such bonds as will permit relief to claimants 1034 and policyholders of the corporation.

Any such unit of local 1035 government may enter into such contracts with the corporation 1036 and with any other entity created pursuant to this subsection as 1037 are necessary to carry out this paragraph. Any bonds issued 1038 under this subparagraph shall be payable from and secured by 1039 moneys received by the corporation from emergency assessments 1040 under sub-subparagraph (b)3.d., and assigned and pledged to or 1041 on behalf of the unit of local government for the benefit of the 1042 holders of such bonds.

The funds, credit, property, and taxing 1043 power of the state or of the unit of local government may shall 1044

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 37 of 52 CODING: Words stricken are deletions; words underlined are additions. not be pledged for the payment of such bonds. 1045 3.a. The corporation shall adopt one or more programs 1046 subject to approval by the office for the reduction of both new 1047 and renewal writings in the corporation.

Beginning January 1, 1048 2008, any program the corporation adopts for the payment of 1049 bonuses to an insurer for each risk the insurer removes from the 1050 corporation shall comply with s. 627.3511(2) and may not exceed 1051 the amount referenced in s. 627.3511(2) for each risk removed. 1052 The corporation may consider any prudent and not unfairly 1053 discriminatory approach to reducing corporation writings, and 1054 may adopt a credit against assessment liability or other 1055 liability that provides an incentive for insurers to take risks 1056 out of the corporation and to keep risks out of the corporation 1057 by maintaining or increasing voluntary writings in counties or 1058 areas in which corporation risks are highly concentrated and a 1059 program to provide a formula under which an insurer voluntarily 1060 taking risks out of the corporation by maintaining or increasing 1061 voluntary writings will be relieved wholly or partially from 1062 assessments under sub-subparagraph (b)3.a.

However, any “take-1063 out bonus” or payment to an insurer must be conditioned on the 1064 property being insured for at least 5 years by the insurer, 1065 unless canceled or nonrenewed by the policyholder. If the policy 1066 is canceled or nonrenewed by the policyholder before the end of 1067 the 5-year period, the amount of the take-out bonus must be 1068 prorated for the time period the policy was insured.

When the 1069 corporation enters into a contractual agreement for a take-out 1070 plan, the producing agent of record of the corporation policy is 1071 entitled to retain any unearned commission on such policy, and 1072 the insurer shall either: 1073

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 38 of 52 CODING: Words stricken are deletions; words underlined are additions. (

I) Pay to the producing agent of record of the policy, for 1074 the first year, an amount which is the greater of the insurer’s 1075 usual and customary commission for the type of policy written or 1076 a policy fee equal to the usual and customary commission of the 1077 corporation; or 1078 (II) Offer to allow the producing agent of record of the 1079 policy to continue servicing the policy for a period of not less 1080 than 1 year and offer to pay the agent the insurer’s usual and 1081 customary commission for the type of policy written.

If the 1082 producing agent is unwilling or unable to accept appointment by 1083 the new insurer, the new insurer shall pay the agent in 1084 accordance with sub-sub-subparagraph (I). 1085 b. Any credit or exemption from regular assessments adopted 1086 under this subparagraph shall last no longer than the 3 years 1087 following the cancellation or expiration of the policy by the 1088 corporation.

With the approval of the office, the board may 1089 extend such credits for an additional year if the insurer 1090 guarantees an additional year of renewability for all policies 1091 removed from the corporation, or for 2 additional years if the 1092 insurer guarantees 2 additional years of renewability for all 1093 policies so removed. 1094 c. There shall be no credit, limitation, exemption, or 1095 deferment from emergency assessments to be collected from 1096 policyholders pursuant to sub-subparagraph (b)3.d. 1097 d.

Notwithstanding any other provision of law, for purposes 1098 of a depopulation, take-out, or keep-out program adopted by the 1099 corporation, including an initial or renewal offer of coverage 1100 made to a policyholder removed from the corporation pursuant to 1101 such program, an eligible surplus lines insurer may participate 1102

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 39 of 52 CODING: Words stricken are deletions; words underlined are additions. in the program in the same manner and on the same terms as an 1103 authorized insurer, except as provided under this sub-1104 subparagraph. 1105 (

I) To qualify for participation, the surplus lines insurer 1106 must first obtain approval from the office for its depopulation, 1107 take-out, or keep-out plan and then comply with all of the 1108 corporation’s requirements for the plan applicable to admitted 1109 insurers and with all statutory provisions applicable to the 1110 removal of policies from the corporation. 1111 (II) In considering a surplus lines insurer’s request for 1112 approval for its plan, the office shall determine that the 1113 surplus lines insurer meets the following requirements: 1114 (

A) Maintains surplus of $50 million on a company or pooled 1115 basis; 1116 (

B) Maintains a financial strength rating of A- or higher 1117 by A.M. Best Company; 1118 (

C) Maintains reserves, surplus, reinsurance, and 1119 reinsurance equivalents sufficient to cover the insurer’s 100-1120 year probable maximum hurricane loss at least twice in a single 1121 hurricane season, and submits such reinsurance to the office to 1122 review for purposes of the take-out; 1123 (

D) Provides prominent notice to the policyholder before 1124 the assumption of the policy that surplus lines policies are not 1125 provided coverage by the Florida Insurance Guaranty Association, 1126 and an outline of any substantial differences in coverage 1127 between the existing policy and the policy being offered to the 1128 insured; and 1129 (

E) Provides policy coverage similar to that provided by 1130 the corporation. 1131

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 40 of 52 CODING: Words stricken are deletions; words underlined are additions. (III) To obtain approval for a plan, the surplus lines 1132 insurer must file the following with the office: 1133 (

A) Information requested by the office to demonstrate 1134 compliance with s. 624.404(3), including biographical 1135 affidavits, fingerprints processed pursuant to s. 624.34, and 1136 the results of criminal history records checks for officers and 1137 directors of the insurer and its parent or holding company; 1138 (

B) A service-of-process consent and agreement form 1139 executed by the insurer; 1140 (

C) Proof that the insurer has been an eligible or 1141 authorized insurer for at least 3 years; 1142 (

D) A duly authenticated copy of the insurer’s current 1143 audited financial statement, in English, expressing all monetary 1144 values in United States dollars, at an exchange rate then 1145 current and shown in the statement, in the case of statements 1146 originally made in the currencies of other countries, and 1147 including any additional information relative to the insurer as 1148 the office may request; 1149 (

E) A complete certified copy of the latest official 1150 financial statement required by the insurer’s domiciliary state, 1151 if different from sub-sub-sub-subparagraph (D); and 1152 (

F) A copy of the United States trust account agreement, if 1153 applicable. 1154 1155 This sub-subparagraph does not subject any surplus lines insurer 1156 to requirements in addition to

part VIII of

chapter 626. Surplus 1157 lines brokers making an offer of coverage under this sub-1158 subparagraph are not required to comply with s. 626.916(1)(a), 1159 (b), (c), and (e). 1160

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 41 of 52 CODING: Words stricken are deletions; words underlined are additions. (IV) Within 10 days after the date of assumption, the 1161 surplus lines insurer assuming policies from the corporation 1162 shall remit a special deposit equal to the unearned premium net 1163 of unearned commissions on the assumed block of business to the 1164 Bureau of Collateral Management within the Department of 1165 Financial Services.

The surplus lines insurer shall submit to 1166 the office, along with the initial deposit, an accounting of the 1167 policies assumed and the amount of unearned premium for such 1168 policies and a sworn affidavit attesting to its accuracy by an 1169 officer of the surplus lines insurer.

Thereafter, the surplus 1170 lines insurer shall make a filing within 10 days after each 1171 calendar quarter attesting to the unearned premium in force for 1172 the previous quarter on policies assumed from the corporation, 1173 and shall submit additional funds with that filing if the 1174 special deposit is insufficient to cover the unearned premium on 1175 assumed policies, or shall receive a return of funds within 60 1176 days if the special deposit exceeds the amount of unearned 1177 premium required for assumed policies.

The special deposit is an 1178 asset of the surplus lines insurer which is held by the 1179 department for the benefit of state policyholders of the surplus 1180 lines insurer in the event of the insolvency of the surplus 1181 lines insurer. If an order of liquidation is entered in any 1182 state against the surplus lines insurer, the department may use 1183 the special deposit for payment of unearned premium or policy 1184 claims, return all or part of the deposit to the domiciliary 1185 receiver, or use the funds in accordance with any action 1186 authorized under

part I of

chapter 631 or in compliance with any 1187 order of a court having jurisdiction over the insolvency. 1188 (

V) Surplus lines brokers representing a surplus lines 1189

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 42 of 52 CODING: Words stricken are deletions; words underlined are additions. insurer on a take-out program shall obtain confirmation, in 1190 written or e-mail form, from each producing agent in advance 1191 stating that the agent is willing to participate in the take-out 1192 program with the surplus lines insurer engaging in the take-out 1193 program. The take-out program is also subject to s. 627.3517.

If 1194 a policyholder is selected for removal from the corporation by a 1195 surplus lines insurer and an authorized insurer, the corporation 1196 shall give the offer of coverage from the authorized insurer 1197 priority. 1198 (VI)(

A) When offered comparable coverage from a qualified 1199 surplus lines insurer no greater than 15 percent higher than the 1200 premium charged by the corporation, a risk that has a dwelling 1201 replacement cost of $700,000 or more or a single condominium 1202 unit that has a combined dwelling and contents replacement cost 1203 of $700,000 or more is not eligible for coverage by the 1204 corporation. 1205 (

B) When offered coverage from a qualified surplus lines 1206 insurer, a risk that has a dwelling replacement cost below 1207 $700,000 or a single condominium unit that has a combined 1208 dwelling and contents replacement cost below $700,000 remains 1209 eligible for coverage by the corporation. 1210 4.

The plan shall provide for the deferment, in whole or in 1211 part, of the assessment of an assessable insurer, other than an 1212 emergency assessment collected from policyholders pursuant to 1213 sub-subparagraph (b)3.d., if the office finds that payment of 1214 the assessment would endanger or impair the solvency of the 1215 insurer. In the event an assessment against an assessable 1216 insurer is deferred in whole or in part, the amount by which 1217 such assessment is deferred may be assessed against the other 1218

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 43 of 52 CODING: Words stricken are deletions; words underlined are additions. assessable insurers in a manner consistent with the basis for 1219 assessments set forth in paragraph (b). 1220 5.

Effective July 1, 2007, in order to evaluate the costs 1221 and benefits of approved take-out plans, if the corporation pays 1222 a bonus or other payment to an insurer for an approved take-out 1223 plan, it shall maintain a record of the address or such other 1224 identifying information on the property or risk removed in order 1225 to track if and when the property or risk is later insured by 1226 the corporation. 1227 6.

Any policy taken out, assumed, or removed from the 1228 corporation is, as of the effective date of the take-out, 1229 assumption, or removal, direct insurance issued by the insurer 1230 and not by the corporation, even if the corporation continues to 1231 service the policies. This subparagraph applies to policies of 1232 the corporation and not policies taken out, assumed, or removed 1233 from any other entity. 1234 7.

For a policy taken out, assumed, or removed from the 1235 corporation, the insurer may, for a period of no more than 3 1236 years, continue to use any of the corporation’s policy forms or 1237 endorsements that apply to the policy taken out, removed, or 1238 assumed without obtaining approval from the office for use of 1239 such policy form or endorsement. 1240 (x)1. The following records of the corporation are 1241 confidential and exempt from the provisions of s. 119.07(1) and 1242 s. 24(a), Art. I of the State Constitution: 1243 a.

Underwriting files, except that a policyholder or an 1244 applicant shall have access to his or her own underwriting 1245 files. Confidential and exempt underwriting file records may 1246 also be released to other governmental agencies upon written 1247

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 44 of 52 CODING: Words stricken are deletions; words underlined are additions. request and demonstration of need; such records held by the 1248 receiving agency remain confidential and exempt as provided 1249 herein. 1250 b. Claims files, until termination of all litigation and 1251 settlement of all claims arising out of the same incident, 1252 although portions of the claims files may remain exempt, as 1253 otherwise provided by law.

Confidential and exempt claims file 1254 records may be released to other governmental agencies upon 1255 written request and demonstration of need; such records held by 1256 the receiving agency remain confidential and exempt as provided 1257 herein. 1258 c. Records obtained or generated by an internal auditor 1259 pursuant to a routine audit, until the audit is completed, or if 1260 the audit is conducted as part of an investigation, until the 1261 investigation is closed or ceases to be active.

An investigation 1262 is considered “active” while the investigation is being 1263 conducted with a reasonable, good faith belief that it could 1264 lead to the filing of administrative, civil, or criminal 1265 proceedings. 1266 d. Matters reasonably encompassed in privileged attorney-1267 client communications. 1268 e. Proprietary information licensed to the corporation 1269 under contract and the contract provides for the confidentiality 1270 of such proprietary information. 1271 f.

All information relating to the medical condition or 1272 medical status of a corporation employee which is not relevant 1273 to the employee’s capacity to perform his or her duties, except 1274 as otherwise provided in this paragraph. Information that is 1275 exempt includes shall include, but is not limited to, 1276

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 45 of 52 CODING: Words stricken are deletions; words underlined are additions. information relating to workers’ compensation, insurance 1277 benefits, and retirement or disability benefits. 1278 g.

Upon an employee’s entrance into the employee assistance 1279 program, a program to assist any employee who has a behavioral 1280 or medical disorder, substance abuse problem, or emotional 1281 difficulty that affects the employee’s job performance, all 1282 records relative to that participation are shall be confidential 1283 and exempt from the provisions of s. 119.07(1) and s. 24(a), 1284 Art. I of the State Constitution, except as otherwise provided 1285 in s. 112.0455(11). 1286 h.

Information relating to negotiations for financing, 1287 reinsurance, depopulation, or contractual services, until the 1288 conclusion of the negotiations. 1289 i. Minutes of closed meetings regarding underwriting files, 1290 and minutes of closed meetings regarding an open claims file 1291 until termination of all litigation and settlement of all claims 1292 with regard to that claim, except that information otherwise 1293 confidential or exempt by law shall be redacted. 1294 2.

If an authorized insurer, a reinsurance intermediary, an 1295 eligible surplus lines insurer, or an entity that has filed an 1296 application with the office for licensure as a property and 1297 casualty insurer in this state is considering writing or 1298 assisting in the underwriting of a risk insured by the 1299 corporation, relevant information from both the underwriting 1300 files and confidential claims files may be released to the 1301 insurer, reinsurance intermediary, eligible surplus lines 1302 insurer, or entity that has been created to seek authority to 1303 write property insurance in this state, provided the recipient 1304 insurer agrees in writing, notarized and under oath, to maintain 1305

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 46 of 52 CODING: Words stricken are deletions; words underlined are additions. the confidentiality of such files. If a policy file is 1306 transferred to an insurer, that policy file is no longer a 1307 public record because it is not held by an agency subject to the 1308 provisions of the public records law.

Underwriting files and 1309 confidential claims files may also be released to staff and the 1310 board of governors of the market assistance plan established 1311 pursuant to s. 627.3515, who must retain the confidentiality of 1312 such files, except such files may be released to authorized 1313 insurers that are considering assuming the risks to which the 1314 files apply, provided the insurer agrees in writing, notarized 1315 and under oath, to maintain the confidentiality of such files. 1316 Finally, the corporation or the board or staff of the market 1317 assistance plan may make the following information obtained from 1318 underwriting files and confidential claims files available to an 1319 entity that has obtained a permit to become an authorized 1320 insurer, a reinsurer that may provide reinsurance under s. 1321 624.610, a licensed reinsurance broker, a licensed rating 1322 organization, a modeling company, or a licensed general lines 1323 insurance agent: name, address, and telephone number of the 1324 residential property owner or insured; location of the risk; 1325 rating information; loss history; and policy type.

The receiving 1326 person must retain the confidentiality of the information 1327 received and may use the information only for the purposes of 1328 developing a take-out plan or a rating plan to be submitted to 1329 the office for approval or otherwise analyzing the underwriting 1330 of a risk or risks insured by the corporation on behalf of the 1331 private insurance market. A licensed general lines insurance 1332 agent may not use such information for the direct solicitation 1333 of policyholders. 1334

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 47 of 52 CODING: Words stricken are deletions; words underlined are additions. 3. A policyholder who has filed suit against the 1335 corporation has the right to discover the contents of his or her 1336 own claims file to the same extent that discovery of such 1337 contents would be available from a private insurer in litigation 1338 as provided by the Florida Rules of Civil Procedure, the Florida 1339 Evidence Code, and other applicable law.

Pursuant to subpoena, a 1340 third party has the right to discover the contents of an 1341 insured’s or applicant’s underwriting or claims file to the same 1342 extent that discovery of such contents would be available from a 1343 private insurer by subpoena as provided by the Florida Rules of 1344 Civil Procedure, the Florida Evidence Code, and other applicable 1345 law, and subject to any confidentiality protections requested by 1346 the corporation and agreed to by the seeking party or ordered by 1347 the court.

The corporation may release confidential underwriting 1348 and claims file contents and information as it deems necessary 1349 and appropriate to underwrite or service insurance policies and 1350 claims, subject to any confidentiality protections deemed 1351 necessary and appropriate by the corporation. 1352 4. Portions of meetings of the corporation are exempt from 1353 the provisions of s. 286.011 and s. 24(b), Art. I of the State 1354 Constitution wherein confidential underwriting files or 1355 confidential open claims files are discussed.

All portions of 1356 corporation meetings which are closed to the public shall be 1357 recorded by a court reporter. The court reporter shall record 1358 the times of commencement and termination of the meeting, all 1359 discussion and proceedings, the names of all persons present at 1360 any time, and the names of all persons speaking. No portion of 1361 any closed meeting shall be off the record. Subject to the 1362 provisions hereof and s. 119.07(1)(d)-(f), the court reporter’s 1363

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 48 of 52 CODING: Words stricken are deletions; words underlined are additions. notes of any closed meeting shall be retained by the corporation 1364 for a minimum of 5 years. A copy of the transcript, less any 1365 exempt matters, of any closed meeting wherein claims are 1366 discussed shall become public as to individual claims after 1367 settlement of the claim. 1368

Section

Section 627.3517, Florida Statutes, is amended 1369 to read: 1370 627.3517 Consumer choice.—No provision of s. 627.351, s. 1371 627.3511, or s. 627.3515 shall be construed to impair the right 1372 of any insurance risk apportionment plan policyholder, upon 1373 receipt of any keep-out keepout or take-out offer, to retain his 1374 or her current agent, so long as that agent is duly licensed and 1375 appointed by the insurance risk apportionment plan or otherwise 1376 authorized to place business with the insurance risk 1377 apportionment plan.

This right may shall not be canceled, 1378 suspended, impeded, abridged, or otherwise compromised by any 1379 rule, plan of operation, or depopulation plan, whether through 1380 keep-out keepout, take-out, midterm assumption, or any other 1381 means, of any insurance risk apportionment plan or depopulation 1382 plan, including, but not limited to, those described in s. 1383 627.351, s. 627.3511, or s. 627.3515.

The commission shall adopt 1384 any rules necessary to cause any insurance risk apportionment 1385 plan or market assistance plan under such sections to 1386 demonstrate that the operations of the plan do not interfere 1387 with, promote, or allow interference with the rights created 1388 under this section. If the policyholder’s current agent is 1389 unable or unwilling to be appointed with the insurer making the 1390 take-out or keep-out keepout offer, the policyholder is shall 1391 not be disqualified from participation in the appropriate 1392

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 49 of 52 CODING: Words stricken are deletions; words underlined are additions. insurance risk apportionment plan because of an offer of 1393 coverage in the voluntary market. An offer of full property 1394 insurance coverage by the insurer currently insuring either the 1395 ex-wind or wind-only coverage on the policy to which the offer 1396 applies is shall not be considered a take-out or keep-out 1397 keepout offer.

Any rule, plan of operation, or plan of 1398 depopulation, through keep-out keepout, take-out, midterm 1399 assumption, or any other means, of any property insurance risk 1400 apportionment plan under s. 627.351(2) or (6) is subject to ss. 1401 627.351(2)(

b) and (6)(

c) and 627.3511(4). 1402

Section 4. Subsection (5) of

section 627.3518, Florida 1403 Statutes, is amended, and paragraph (

a) of subsection (6) and 1404 paragraph (

a) of subsection (7) of that

section are reenacted, 1405 to read: 1406 627.3518 Citizens Property Insurance Corporation 1407 policyholder eligibility clearinghouse program.—The purpose of 1408 this

section is to provide a framework for the corporation to 1409 implement a clearinghouse program by January 1, 2014. 1410

(5) Notwithstanding s. 627.3517, any applicant for new 1411 coverage from the corporation is not eligible for coverage from 1412 the corporation if provided an offer of coverage from an 1413 authorized insurer through the program at a premium that is at 1414 or below the eligibility threshold established in s. 1415 627.351(6)(c)5.a.

Whenever an offer of coverage for a personal 1416 lines risk is received for a policyholder of the corporation at 1417 renewal from an authorized insurer through the program, if the 1418 offer is at or below the eligibility threshold established in s. 1419 627.351(6)(c)5.a. equal to or less than the corporation’s 1420 renewal premium for comparable coverage, the risk is not 1421

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 50 of 52 CODING: Words stricken are deletions; words underlined are additions. eligible for coverage with the corporation. In the event an 1422 offer of coverage for a new applicant or a personal lines risk 1423 at renewal is received from an authorized insurer through the 1424 program, and the premium offered exceeds the eligibility 1425 thresholds specified threshold contained in s. 1426 627.351(6)(c)5.a., the applicant or insured may elect to accept 1427 such coverage, or may elect to accept or continue coverage with 1428 the corporation.

In the event an offer of coverage for a 1429 personal lines risk is received from an authorized insurer at 1430 renewal through the program, and the premium offered is more 1431 than the corporation’s renewal premium for comparable coverage, 1432 the insured may elect to accept such coverage, or may elect to 1433 accept or continue coverage with the corporation.

Section 1434 627.351(6)(c)5.a.(

I) does not apply to an offer of coverage from 1435 an authorized insurer obtained through the program. An applicant 1436 for coverage from the corporation who was declared ineligible 1437 for coverage at renewal by the corporation in the previous 36 1438 months due to an offer of coverage pursuant to this subsection 1439 shall be considered a renewal under this

section if the 1440 corporation determines that the authorized insurer making the 1441 offer of coverage pursuant to this subsection continues to 1442 insure the applicant and increased the rate on the policy in 1443 excess of the increase allowed for the corporation under s. 1444 627.351(6)(n)6. 1445

(6) Independent insurance agents submitting new 1446 applications for coverage or that are the agent of record on a 1447 renewal policy submitted to the program: 1448 (

a) Are granted and must maintain ownership and the 1449 exclusive use of expirations, records, or other written or 1450

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 51 of 52 CODING: Words stricken are deletions; words underlined are additions. electronic information directly related to such applications or 1451 renewals written through the corporation or through an insurer 1452 participating in the program, notwithstanding s. 1453 627.351(6)(c)5.a.(I)(

B) and (II)(B). Such ownership is granted 1454 for as long as the insured remains with the agency or until sold 1455 or surrendered in writing by the agent. Contracts with the 1456 corporation or required by the corporation must not amend, 1457 modify, interfere with, or limit such rights of ownership.

Such 1458 expirations, records, or other written or electronic information 1459 may be used to review an application, issue a policy, or for any 1460 other purpose necessary for placing such business through the 1461 program. 1462 1463 Applicants ineligible for coverage in accordance with subsection 1464 (5) remain ineligible if their independent agent is unwilling or 1465 unable to enter into a standard or limited agency agreement with 1466 an insurer participating in the program. 1467

(7) Exclusive agents submitting new applications for 1468 coverage or that are the agent of record on a renewal policy 1469 submitted to the program: 1470 (

a) Must maintain ownership and the exclusive use of 1471 expirations, records, or other written or electronic information 1472 directly related to such applications or renewals written 1473 through the corporation or through an insurer participating in 1474 the program, notwithstanding s. 627.351(6)(c)5.a.(I)(

B) and 1475 (II)(B). Contracts with the corporation or required by the 1476 corporation must not amend, modify, interfere with, or limit 1477 such rights of ownership. Such expirations, records, or other 1478 written or electronic information may be used to review an 1479

Florida Senate - 2021 SB 1574 24-00876F-21 20211574__ Page 52 of 52 CODING: Words stricken are deletions; words underlined are additions. application, issue a policy, or for any other purpose necessary 1480 for placing such business through the program. 1481 1482 Applicants ineligible for coverage in accordance with subsection 1483 (5) remain ineligible if their exclusive agent is unwilling or 1484 unable to enter into a standard or limited agency agreement with 1485 an insurer making an offer of coverage to that applicant. 1486

Section 5. This act shall take effect January 1, 2022. 1487