Meeting Packet — Insurance & Banking Subcommittee (February 2, 2022)
Summary
Meeting packet for the Insurance & Banking Subcommittee of the Commerce Committee, Wednesday, February 2, 2022, 9:00 AM in Morris Hall (17 HOB). The agenda lists HB 625 Estates and Trusts by Altman, HB 785 Two-way Radio Communication Enhancement Systems by Botana, HB 837 Hurricane Loss Mitigation Program by Willhite, HB 1141 Bail Bond Agents by Plakon, and HB 1307 Citizens Property Insurance Corporation by Gregory and Giallombardo. The packet includes the staff analysis of HB 625, which states that the bill has no fiscal impact on state or local governments, an indeterminate fiscal impact on the private sector, and an effective date of July 1, 2022. It also carries the bill text and committee amendments, including Amendment 989177 to HB 1307.
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Insurance & Banking Subcommittee
Wednesday, February 2, 2022
9:00 AM - 11:00 AM
Morris Hall (17 HOB)
Meeting Packet
Chris Sprowls Nick DiCeglie
Speaker Chair
The Florida House of Representatives
Commerce Committee
Insurance & Banking Subcommittee
Chris Sprowls Nick DiCeglie
Speaker Chair
Meeting Agenda
Wednesday, February 2, 2022
9:00 AM – 11:00 AM
Morris Hall (17 HOB)
I. Call to Order
II. Roll Call
III. Welcome and Opening Remarks
IV. Consideration of the following bill(s):
• HB 625 Estates and Trusts by Altman
• HB 785 Two-way Radio Communication Enhancement Systems by
Botana
• HB 837 Hurricane Loss Mitigation Program by Willhite
• HB 1141 Bail Bond Agents by Plakon
• HB 1307 Citizens Property Insurance Corporation by Gregory,
Giallombardo
V. Closing Remarks
VI. Adjournment
303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
(850) 717-4870
HB 625
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 625 Estates and Trusts
SPONSOR(S): Altman
TIED BILLS: IDEN./SIM. BILLS: SB 1502
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Civil Justice & Property Rights Subcommittee 15 Y, 0 N Mathews Jones
2) Insurance & Banking Subcommittee Hinshelwood Luczynski
3) Judiciary Committee
SUMMARY ANALYSIS
Probate is a court-supervised process for identifying and gathering the assets of a deceased person
(decedent), paying the decedent’s debts, and distributing the decedent’s assets to his or her beneficiaries .
Through the probate process, the personal representative is responsible for giving actual notice of the probate
proceedings to “known or reasonably ascertainable creditors.” Any creditor who believes he or she is entitled to
compensation from the decedent’s estate to satisfy a debt must file a claim with the clerk of court. The
personal representative or any other interested person may file an objection to a creditor’s statement of claim.
If an objection is filed against a creditor’s statement of claim, the creditor must file a separate independent
lawsuit against the decedent’s estate to pursue the claim within thirty days from the date the objection was
served.
A trust is a document created to manage a person’s assets and distribute his or her remaining assets after
death. The person who creates the trust is the “grantor” or “settlor.” The person responsible for the
management of the assets within the trust is the “trustee.” The trustee includes the original trustee, any
additional trustee, any successor trustee, and any cotrustee. A trustee has a right to resign after providing at
least 30 days’ notice to the beneficiaries and other interested parties. In Florida, a trustee’s right to resign is a
mandatory provision and may not be denied or curtailed by any provision in the trust instrument. However,
under current law, if the resigning trustee is the only remaining trustee, he or she continues to owe a fiduciary
duty, regardless of his or her notice and resignation, until another trustee accepts the role.
The bill amends s. 733.705, F.S., codifying the existing procedure by which courts have permitted a creditor’s
pending action against a person at the time of death to be deemed an “independent action” under s.
733.705(5), F.S., thereby satisfying the creditor’s requirement to bring an independent action within 30 days of
an objection to a statement of claim. The bill also codifies procedures for deeming the “independent action”
requirement satisfied where a claim is subject to a binding arbitration agreement or arbitration was already
commenced before the decedent’s death.
The bill amends s. 736.0705(1), F.S., to clarify that a trust instrument may provide the procedure by which a
trustee may resign, subject to specified notice requirements. The bill effectively permits a trust instrument to
make the process of resignation easier for an outgoing trustee. However, if the trust instrument is silent
regarding timing of the trustee’s resignation or if the trust attempts to impose a notice requirement of more than
30 days, the 30-day notice requirement under current law prevails. Therefore, a trust instrument may not make
the resignation process more difficult by imposing a longer notice, but the trust instrument may include
provisions to make the resignation process easier.
The bill has no fiscal impact on state or local governments and an indeterminate fiscal impact on the private
sector.
The bill has an effective date of July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0625c.IBS
DATE: 1/31/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Probate
Probate is a court-supervised process for identifying and gathering the assets of a deceased person
(decedent), paying the decedent’s debts, and distributing the decedent’s assets to his or her
beneficiaries. A will is a legal document that a person (a testator) may use to determine who gets his or
her property upon death. A will does not dispose of all of a testator’s property, but only his or her
estate, or those assets that are subject to probate administration. 1 Other assets are disposed of outside
probate.
Without a will, a decedent’s estate is distributed pursuant to the intestacy statutes, which devise2 a
decedent’s estate according to default rules. With a will, however, a testator may devise the estate to
whomever he or she prefers.
In order for the decedent’s estate to be transferred to heirs or to the beneficiaries of the will, a petition
for administration must be filed with the circuit court. 3 A personal representative, who is designated by
the will or the circuit court to serve in that role, must provide a notice of administration to various
parties, including family members, beneficiaries, and other entities. 4 The personal representative must
search for and provide notice to the decedent’s creditors. 5 In order for a personal representative to
claim monies from bank accounts for the estate, the court must issue letters of administration granting
the personal representative the authority to act on the estate’s behalf. The letters give the personal
representative the authority to gather assets, pay a creditor, and pay an heir or beneficiary.
Administration of the decedent’s estate ensures that the decedent’s creditors are paid as long as
certain procedures are followed.6
Probate and the Decedent’s Creditors
Through the probate process, the personal representative is responsible for giving actual notice of the
probate proceedings to “known or reasonably ascertainable creditors.” 7 The notice process ensures
creditors have the opportunity to file claims against the decedent’s estate to recover debts owed by the
decedent to the creditor.8 Any creditor who believes he or she is entitled to compensation from the
decedent’s estate to satisfy a debt must file a claim with the clerk of court. The personal representative
or any other interested person may file an objection to a creditor’s statement of claim. If an objection is
filed against a creditor’s statement of claim, the creditor must file a separate independent lawsuit
against the decedent’s estate to pursue the claim within thirty days from the date the objection was
served.
Currently, neither the Florida Statutes nor the Florida Probate Rules address what happens when a
creditor has a pending action against a person at the time of death. As such, there is no clear
mechanism by which the creditor’s pending lawsuit or action is sufficient to be deemed an independent
legal action such that it satisfies the creditor’s requirement to bring an independent action within 30
1 S. 732.201(14), F.S.
2 To devise means to dispose of real or personal property by will or trust. S. 731.201(10), F.S.
3 S. 733.202, F.S.
4 S. 733.212, F.S.
5 S. 733.2121, F.S.
6 The Florida Bar, Consumer Pamphlet: Prob ate in Florida, https://www.floridabar.org/public/consumer/pamphlet026/ (last visited Jan.
13, 2022).
7 Id.
8 Id.
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days of an objection to a statement of claim.9 Florida courts appear to have established that a pending
action against a decedent at the time of death is deemed an “independent action” under s. 733.705(5),
F.S., when a motion for substitution (or voluntary substitution) of the personal representative or other
fiduciary of the estate is filed in the pending lawsuit.10
Resignation of a Trustee
A trust is a document created to manage a person’s assets and distribute his or her remaining assets
after death.11 The person who creates the trust is the “grantor” or “settlor.” 12 The person responsible for
the management of the assets within the trust is the “trustee.” 13 The trustee includes the original
trustee, any additional trustee, any successor trustee, and any cotrustee. 14
Currently, a trustee in Florida has a right to resign after providing at least 30 days’ notice to the
beneficiaries and other interested parties.15 In Florida, a trustee’s right to resign is a mandatory
provision and may not be denied or curtailed by any provision in the trust instrument. 16 However, under
current law, if the resigning trustee is the only remaining trustee, he or she continues to owe a fiduciary
duty, regardless of his or her notice and resignation, until another trustee accepts the role.17
Effect of the Bill
Probate and Creditors
The bill amends s. 733.705(5), F.S., to codify the existing procedure by which courts have permitted a
creditor’s pending action against a person at the time of death to be deemed an “independent action”
under s. 733.705(5), F.S., thereby satisfying the creditor’s requirement to bring an independent action
within 30 days of an objection to a statement of claim.18 If a creditor has an existing or pending claim or
action against the decedent at the time of death, the bill treats the substitution of the decedent’s estate
(via the personal representative or other fiduciary) in an existing action as satisfying the requirement to
file an independent action. The bill also codifies procedures for deeming the “independent action”
requirement satisfied where a claim is subject to a binding arbitration agreement or arbitration was
already commenced before the decedent’s death.
Resignation of a Trustee
The bill amends s. 736.0705(1), F.S., to clarify that a trust instrument may provide the procedure by
which a trustee may resign, subject to specified notice requirements. The bill effectively permits a trust
instrument to make the process of resignation easier for an outgoing trustee. However, if the trust
instrument is silent regarding timing of the trustee’s resignation or if the trust attempts to impose a
notice requirement of more than 30 days, the 30-day notice requirement under current law prevails.
Therefore, a trust instrument may not make the resignation process more difficult by imposing a longer
notice, but the trust instrument may include provisions to make the resignation process easier.
The bill provides an effective date of July 1, 2022.
B. SECTION DIRECTORY:
9
Probate Law and Procedure Committee of the Real Property, Probate and Trust Law Section of the Florida Bar, White Paper on
Proposed Amendments to S. 733.705(5), F.S. (2022).
10 Id. See e.g., Lewsadder v. Estate of Lewsadder, 757 So. 2d 1221 (Fla.4th DCA 2000).
11 The Florida Bar, Consumer Pamphlet: The Revocable Trust in Florida, https://www.floridabar.org/public/consumer/pamphlet028/ (last
visited on Jan. 13, 2022).
12 Id.
13 Id.
14 S. 736.0103(27), F.S.
15 S. 736.0705,(1)(a), F.S.
16 Trust Law Committee of the Real Property, Probate and Trust Law Section of the Florida Bar, White Paper on Proposed
Amendments to S. 736.0705(1)(a), F.S. – Trustee Resignation (2022).
17 S. 736.0707(1), F.S.
18 Id.
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Section 1: Amends s. 733.705(5), F.S., relating to payment of and objection to claims.
Section 2: Amends s. 736.0705(1), F.S., relating to resignation of trustee.
Section 3: Provides an effective date of July 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Indeterminate.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
None.
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
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IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 625 2022
1 A bill to be entitled
2 An act relating to estates and trusts; amending s.
3 733.705, F.S.; providing that the requirement for a
4 claimant to file an independent action is satisfied if
5 specified actions are taken; specifying that
6 claimants, not creditors, are given certain priority
7 of claims; amending s. 736.0705, F.S.; providing that
8 a trustee may resign by specified procedure and with
9 notice to certain parties; providing an effective
10 date.
11
12 Be It Enacted by the Legislature of the State of Florida:
13
14 Section 1. Subsection (5) of section 733.705, Florida
15 Statutes, is amended to read:
16 733.705 Payment of and objection to claims.—
17 (5) The claimant is limited to a period of 30 days from
18 the date of service of an objection within which to bring an
19 independent action upon the claim, or a declaratory action to
20 establish the validity and amount of an unmatured claim which is
21 not yet due but which is certain to become due in the future, or
22 a declaratory action to establish the validity of a contingent
23 claim upon which no cause of action has accrued on the date of
24 service of an objection and that may or may not become due in
25 the future, unless an extension of this time is agreed to by the
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hb0625-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 625 2022
26 personal representative in writing before it expires.
27 (a) For good cause, the court may extend the time for
28 filing an action or proceeding after objection is filed. No
29 action or proceeding on the claim may be brought against the
30 personal representative after the time limited above, and the
31 claim is barred without court order.
32 (b) If an action or proceeding by the claimant is pending
33 against the decedent at the time of the decedent's death, the
34 requirement to bring an independent action is satisfied if,
35 within 30 days after the filing of an objection to the claim:
36 1. A motion complying with all applicable rules of
37 procedure is filed, or a similar procedure is initiated, to
38 substitute the proper party; or
39 2. An order substituting the proper party is entered.
40 (c) If the decedent entered into a binding arbitration
41 agreement relating to the claim during his or her lifetime, or
42 if arbitration is required under s. 731.401, the requirement to
43 bring an independent action is satisfied if, within 30 days
44 after the filing of an objection to the claim, a motion to
45 compel arbitration against the proper party is initiated, as
46 provided for in s. 682.03.
47 (d) If arbitration was commenced before the decedent's
48 death, the requirement to bring an independent action is
49 satisfied if, within 30 days after the filing of an objection to
50 the claim, notice is given to the proper party. If the
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 625 2022
51 arbitration was commenced by order of the court, the notice must
52 take the form of a timely filed motion, complying with all
53 applicable rules of procedure, to substitute the proper party.
54 (e) If an objection is filed to the claim of any claimant
55 creditor and the claimant creditor brings an action to establish
56 the claim, a judgment establishing the claim shall give it no
57 priority over claims of the same class to which it belongs.
58 Section 2. Subsection (1) of section 736.0705, Florida
59 Statutes, is amended to read:
60 736.0705 Resignation of trustee.—
61 (1) A trustee may resign in accordance with the procedure
62 set forth in the trust instrument and upon notice to the
63 cotrustees or, if none, to the successor trustee who has
64 accepted the appointment, or, if none, to the person or persons
65 who have the authority to appoint a successor trustee.
66 Notwithstanding any provision of the terms of the trust, a
67 trustee may also resign:
68 (a) Upon at least 30 days' notice to the qualified
69 beneficiaries, the settlor, if living, and all cotrustees; or
70 (b) With the approval of the court.
71 Section 3. This act shall take effect July 1, 2022.
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hb0625-00
HB 785
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 785 Two-way Radio Communication Enhancement Systems
SPONSOR(S): Botana
TIED BILLS: IDEN./SIM. BILLS: SB 1190
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee Fortenberry Luczynski
2) Commerce Committee
SUMMARY ANALYSIS
Chapter 633, F.S., Fire Prevention and Control, designates the Chief Financial Officer (CFO) as the State Fire
Marshal (SFM). The SFM, through the Division of the State Fire Marshal within the Department of Financial
Services (DFS), is charged with enforcing the provisions of ch. 633, F.S., and all other applicable laws relating
to fire safety. The SFM adopts by rule the Florida Fire Prevention Code (FFPC), which contains all fire safety
laws and rules that pertain to the design, construction, erection, alteration, modification, repair, and demolition
of public and private buildings, structures, and facilities and the enforcement of such fire safety laws and rules ,
and is the minimum fire prevention code deemed adopted in each municipality, county, and special district with
firesafety responsibilities. Local fire authorities (authorities having jurisdiction) set standards for radio signal
strength throughout buildings within their jurisdiction to ensure consistent fire and rescue communication
capabilities.
Two-way radio communication enhancement systems are devices installed after a building is constructed that
accept, and then amplify, radio signals used by first responders. The generally desired effect is that the radio
signal strength at ground level, where a fire rescue operation might be based, is equal to the radio signal
strength in all locations throughout the building, to ensure consistent communication. Several devices are
available to boost signal strength to meet required radio signal strength. Amendments to the FFPC, effective
January 1, 2018, provided that all new and existing buildings must maintain minimum radio signal strength at a
level determined by the authority having jurisdiction.
Section 633.202(18), F.S., enacted in 2016, provides that authorities having jurisdiction shall determine
minimum radio signal strength for fire department communications in all new and existing high-rise buildings.
The FFPC defines a high-rise building as a building where the floor of an occupiable story is greater than 75
feet above the lowest level of fire department vehicle access. Currently, existing high-rise buildings are not
required to comply with minimum radio strength for fire department communications and two-way radio
communication enhancement systems as required by the FFPC until January 1, 2025. By January 1, 2024, an
existing building that is not in compliance with the requirements for minimum radio strength for fire department
communications must apply to the local government agency having jurisdiction for an appropriate permit for the
required system installation. Such an existing building must demonstrate that the building will become
compliant with the FFPC by January 1, 2025.
The bill establishes that two-way radio communication enhancement, or equivalent systems may be used to
comply with the minimum radio signal strength requirements for fire department communications. However,
the bill also establishes that these systems are not required in apartment buildings that are 75 feet or les s in
height.
The bill has no impact on state or local government revenues or expenditures, and may have an indeterminate,
positive impact on the private sector.
The bill has an effective date of July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0785.IBS
DATE: 1/31/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
State Fire Marshal
Chapter 633, F.S., Fire Prevention and Control, designates the Chief Financial Officer (CFO) as the
State Fire Marshal (SFM). The SFM, through the Division of the State Fire Marshal within the
Department of Financial Services (DFS), is charged with enforcing the provisions of ch. 633, F.S., and
all other applicable laws relating to fire safety.1 The SFM also has the responsibility to minimize the
loss of life and property due to fire.2 Pursuant to this authority, the State Fire Marshal regulates, trains,
and certifies fire service personnel and firesafety inspectors; investigates the causes of fires; enforces
arson laws; regulates the installation of fire equipment; conducts firesafety inspections of state
property; and operates the Florida State Fire College.
Florida Fire Prevention Code
The SFM adopts by rule the Florida Fire Prevention Code (FFPC), which contains all fire safety laws
and rules that pertain to the design, construction, erection, alteration, modification, repair, and
demolition of public and private buildings, structures, and facilities and the enforcement of such fire
safety laws and rules.3 The SFM adopts a new edition of the FFPC every three years 4 and the 7th
edition of the FFPC took effect on December 31, 2020.5 The FFPC is largely based on the National Fire
Protection Association’s (NFPA) Standard 1, Fire Prevention Code, along with the current edition of the
NFPA’s Life Safety Code, NFPA 101.6
The FFPC is the minimum fire prevention code deemed adopted in each municipality, county, and
special district with firesafety responsibilities, and applies to every building and structure throughout the
state with few exceptions.7 Municipalities, counties, and special districts with firesafety responsibilities
may supplement the FFPC with more stringent standards. 8 Local fire authorities (authorities having
jurisdiction) set standards for radio signal strength throughout buildings within their jurisdiction to
ensure consistent fire and rescue communication capabilities.
Radio Signal Strength for Fire Department Communications
The life safety of firefighters and citizens depends on reliable, functional communication tools that work
in the harshest and most hostile of environments.9 All firefighters, professional and volunteer, operate in
extreme environments that are markedly different from those of any other radio users. 10 The radio
connects the firefighters to command and outside assistance in the most desperate of situations. 11 The
focus on radio signal strength stems from difficulties firefighters experienced when attempting rescue
operations on September 11, 2001, in the World Trade Center Towers.12 These firefighters found that in
1 S. 633.104 F.S.
2 Id.
3 Ch. 69A, F.A.C.
4 S. 633.202, F.S.
5 See Florida Fire Prevention Code (FFPC),
https://www.myfloridacfo.com/division/sfm/bfp/ floridafirepreventioncodepage.htm (last visited Jan. 28, 2022).
6 S. 633.202(2), F.S.
7 S. 633.208, F.S. and R. 69A-60.002(1), F.A.C.
8 S. 633.208(3), F.S., and 69A-60.002(2), F.A.C.
9 U.S. Fire Administration, Voice Radio Communications Guide for the Fire Service (June 2016),
https://www.usfa.fema.gov/ downloads/pdf/publications/Voice_Radio_Communications_Guide_for_the_Fire_S ervice.pdf
(last visited Jan. 28, 2022).
10 Id.
11 Id.
12 See National Fire Protection Association, Assessment of Total Evacuation Systems for Tall Buildings: Literature
Review, evacsystemstallbuildingsliteraturereviewexecsum.ashx (nfpa.org) (last visited Jan. 29, 2022).
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certain areas of the buildings their radio signal degraded, making live communications difficult or
impossible.13
Two-way radio communication enhancement systems are devices installed after a building is
constructed that accept, and then amplify, radio signals used by first responders. A radio frequency site
survey may be conducted in a building to determine areas where radio signal strength drops due to
materials used in construction, such as thick walls, metal construction, underground structures, and
low-emissivity glass windows. The generally desired effect is that the radio signal strength at ground
level, where a fire rescue operation might be based, is equal to the radio signal strength in all locations
throughout the building, to ensure consistent communication. Several devices are available to boost
signal strength to meet required radio signal strength. These include bi-directional amplifiers and
networks of indoor antennae, referred to collectively as a distributed antenna system. 14
Florida Fire Code Minimum Radio Signal Strength
Amendments to the FFPC, effective January 1, 2018, provided that all new and existing buildings must
maintain minimum radio signal strength at a level determined by the authority having jurisdiction. 15
Where required by a local fire authority, two-way radio communication enhancement systems must
comply with federal standards for installation and upkeep. 16 Additionally, if a two-way radio
communication enhancement system would have a negative impact on the operations of a facility, the
local fire authority may accept an automatically activated emergency responder radio coverage system
in the alternative.17
Minimum Radio Signal Strength for High-Rise Buildings
Section 633.202(18), F.S., enacted in 2016,18 provides that authorities having jurisdiction shall
determine minimum radio signal strength for fire department communications in all new and existing
high-rise buildings. The FFPC defines a high-rise building as a building where the floor of an occupiable
story is greater than 75 feet above the lowest level of fire department vehicle access.19 Currently,
existing high-rise buildings are not required to comply with minimum radio strength for fire department
communications and two-way radio communication enhancement systems as required by the FFPC
until January 1, 2025.20 By January 1, 2024, an existing building that is not in compliance with the
requirements for minimum radio strength for fire department communications must apply to the local
government agency having jurisdiction for an appropriate permit for the required system installation.21
Such an existing building must demonstrate that the building will become compliant with the FFPC by
January 1, 2025.22
Effect of the Bill
13 Id.
14 See City of Treasure Island, Florida, Two-Way Radio Communications Enhancement Systems Requirements (Apr. 20,
2019), High-Rise Public Safety System Integrators (mytreasureisland.org) (last visited Jan. 29, 2022); see also East Lake
Tarpon Special Fire Control District, Information Bulletin: Two-Way Radio Communication Enhancement System
Requirements, Bulletin+East+Lake+Two+Way+Communications.pdf (elfr.org) (last visited Jan. 29, 2022).
15 Florida Fire Prevention Code (7th ed. 2020) s. 11.10.1, https://www.nfpa.org/codes-and-standards/all-codes-and-
standards/codes-and-standards/free-access?mode= view (last visited Jan. 29, 2022).
16 Florida Fire Prevention Code (7th ed. 2020) s. 11.10.2, https://www.nfpa.org/codes-and-standards/all-codes-and-
standards/codes-and-standards/free-access?mode= view (last visited Jan. 29, 2022).
17 Florida Fire Prevention Code (7th ed. 2020) s. 11.10.3, https://www.nfpa.org/codes-and-standards/all-codes-and-
standards/codes-and-standards/free-access?mode= view (last visited Jan. 29, 2022).
18 Ch. 2016-129, s. 27, Laws of Fla.
19 Florida Fire Prevention Code (7th ed. 2020) s. 3.3.29.6, https://www.nfpa.org/codes-and-standards/all -codes-and-
standards/codes-and-standards/free-access?mode= view (last visited Jan. 29, 2022).
20 S. 633.202(18), F.S. Under current law, the compliance dates for existing apartment buildings are the same as those for
all other high-rise buildings.
21 Id.
22 Id.
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The bill establishes that two-way radio communication enhancement, or equivalent, systems may be
used to comply with the minimum radio signal strength requirements for fire department
communications. The bill also establishes that these systems are not required in apartment buildings
that are 75 feet or less in height.
B. SECTION DIRECTORY:
Section 1. Amends s. 633.202, F.S., relating to Fire Prevention Code.
Section 2. Provides and effective date of July 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill has an indeterminate, but potentially positive impact on the private sector. Certain apartment
buildings will be made exempt from putting in two-way radio systems and save the cost associated with
putting in those systems.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill neither authorizes nor requires administrative rulemaking.
STORAGE NAME: h0785.IBS PAGE: 4
DATE: 1/31/2022
C. DRAFTING ISSUES OR OTHER COMMENTS:
While the bill states that two-way radio communication enhancement systems are not required in
buildings that are 75 feet or less in height, existing language in s. 633.202(18), F.S., reads as though all
existing apartment buildings are required to comply with these requirements. It is suggested that a
clarification be made to the existing language to make it clear that only apartment buildings over 75 feet
in height need to comply.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
STORAGE NAME: h0785.IBS PAGE: 5
DATE: 1/31/2022
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 785 2022
1 A bill to be entitled
2 An act relating to two-way radio communication
3 enhancement systems; amending s. 633.202, F.S.;
4 authorizing the use of two-way radio communication
5 enhancement systems to comply with certain radio
6 signal strength requirements in the Florida Fire
7 Prevention Code; exempting certain apartment buildings
8 from requiring two-way radio communication enhancement
9 systems; providing an effective date.
10
11 Be It Enacted by the Legislature of the State of Florida:
12
13 Section 1. Subsection (18) of section 633.202, Florida
14 Statutes, is amended to read:
15 633.202 Florida Fire Prevention Code.—
16 (18) The authority having jurisdiction shall determine the
17 minimum radio signal strength for fire department communications
18 in all new high-rise and existing high-rise buildings. Two-way
19 radio communication enhancement systems or equivalent systems
20 may be used to comply with the minimum radio signal strength
21 requirements. However, two-way radio communication enhancement
22 systems or equivalent systems are not required in apartment
23 buildings that are 75 feet or less in height. Existing buildings
24 are not required to comply with minimum radio strength for fire
25 department communications and two-way radio communication
Page 1 of 2
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hb0785-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 785 2022
26 enhancement systems system enhancement communications as
27 required by the Florida Fire Prevention Code until January 1,
28 2025. However, by January 1, 2024, an existing building that is
29 not in compliance with the requirements for minimum radio
30 strength for fire department communications must apply for an
31 appropriate permit for the required installation with the local
32 government agency having jurisdiction and must demonstrate that
33 the building will become compliant by January 1, 2025. Existing
34 apartment buildings are not required to comply until January 1,
35 2025. However, existing apartment buildings are required to
36 apply for the appropriate permit for the required communications
37 installation by January 1, 2024.
38 Section 2. This act shall take effect July 1, 2022.
Page 2 of 2
CODING: Words stricken are deletions; words underlined are additions.
hb0785-00
INSURANCE & BANKING SUBCOMMITTEE
HB 785 by Rep. Botana
Two-way Radio Communication Enhancement Systems
AMENDMENT SUMMARY
February 2, 2022
Amendment 1 by Rep. Botana (Line 18): The amendment makes the following modifications
to the bill:
• Establishes that apartment buildings that are 75 feet or less in height with exterior
components constructed of wood frame are exempted from the requirement to install
two-way radio communication enhancement, or equivalent, systems. The bill as filed
exempted all apartment buildings that are 75 feet or less in height.
• Establishes that evidence of wood frame construction shall be shown by the property
owner providing building permit documentation that confirms this type of construction.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 785 (2022)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Botana offered the following:
4
5 Amendment
6 Remove line 23 and insert:
7 buildings 75 feet or less in height with the exterior components
8 constructed of wood frame. Evidence of wood frame construction
9 shall be shown by the property owner providing building permit
10 documentation which identifies the construction type as wood
11 frame. Existing buildings
258867 - h0785-line 23.docx
Published On: 2/1/2022 6:25:28 PM
Page 1 of 1
HB 837
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 837 Hurricane Loss Mitigation Program
SPONSOR(S): Willhite
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee Fortenberry Luczynski
2) Pandemics & Public Emergencies Committee
3) Infrastructure & Tourism Appropriations
Subcommittee
4) Commerce Committee
SUMMARY ANALYSIS
The Legislature created the Florida Hurricane Catastrophe Fund (FHCF), a tax-exempt trust fund, in 1993, in
response to the problems that developed in the residential property insurance industry following property losses
incurred through a serious of catastrophic events, including Hurricane Andrew in 1992. When the Internal Revenue
Service issued a private letter ruling granting tax-exempt status to the FHCF, it required a certain amount of FHCF
funds to be appropriated for hurricane mitigation purposes.
Since fiscal year 1997-98 and annually thereafter, Florida law directs the Legislature to appropriate from the
investment income of the FHCF no less than $10 million, but no more than 35 percent, from the investment income
of the FHCF from the prior fiscal year. The FHCF appropriation is for the purpose of providing funding to state
agencies, local governments, public and private educational institutions, and nonprofit organizations to support
programs intended to:
Improve hurricane preparedness;
Reduce potential losses in the event of a hurricane;
Provide research into means to reduce such losses;
Assist the public in determining the appropriateness of upgrades to structures or financing upgrades; or
Protect local infrastructure from potential hurricane damage.
In 1999, the Legislature created the Hurricane Loss Mitigation Program (HLMP), The HLMP is funded by the annual
appropriation of $10 million from the FHCF. The funds are to be used as follows:
$3 million is directed towards retrofitting public facilities for use as hurricane shelters.
$7 million is directed toward programs to improve the wind resistance of residences and mobile homes,
educating persons concerning the Florida Building Code cooperative programs with local governments and
the Federal Government, and other efforts to prevent or reduce losses or reduce the cost of rebuilding after
a disaster. These funds are further directed as follows:
o $2.8 million to the Mobile Home Tie-Down Program;
o $700,000 to the Florida International University center for hurricane research; and
o $3.5 million to the Hurricane Loss Mitigation Program Retrofit Grant for the purpose of improving
community resiliency.
The bill saves the HLMP from repeal by extending the expiration date of the relevant statute to Jun e 30, 2032.
In relation to the mobile home program, the bill also removes obsolete rate standard language regarding mobile
home insurance policies issued by Citizens.
The bill has no fiscal impact on the General Revenue fund. Annually, $10 million is appropriated from the FHFC to
the HLMP. Should this bill become law, these funds would continue to be appropriated until June 30, 203 2. The bill
has an indeterminate but likely positive impact on the private sector.
The bill is effective upon becoming law.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0837.IBS
DATE: 1/31/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
The Legislature created the Florida Hurricane Catastrophe Fund (FHCF), a tax-exempt trust fund, in
1993.1 The creation of the FHCF stemmed from issues that developed in the residential property
insurance market following property losses due to a series of catastrophic events, including Hurricane
Andrew in 1992.2 State actions was required to correct the inability of the private insurance and
reinsurance markets to maintain sufficient capacity.3 The FHCF is intended to provide a stable and
ongoing source of reimbursement to insurers for a portion of their catastrophic hurricane losses,
creating additional insurance capacity for the state.4 The FHCF is administered by the State Board of
Administration, which is governed by a three-member Board of Trustees, comprised of the Governor,
who serves as the chair, the Chief Financial Officer, and the Attorney General. 5
The Internal Revenue Service issued a private letter ruling (PLR)6 granting tax-exempt status to the
FHCF, which requires a certain amount of FHCF funds to be appropriated for hurricane mitigation
purposes.7 Annually since fiscal year 1997-98, Florida law directs the Legislature to appropriate no less
than $10 million, but not more than 35 percent, from the investment income of the FHCF from the prior
fiscal year.8 The FHCF appropriation is for the purpose of providing funding for state agencies, local
governments, public and private educational institutions, and nonprofit organizations to support
programs intended to:
Improve hurricane preparedness;
Reduce potential losses in the event of a hurricane;
Provide research into means to reduce such losses;
Assist the public in determining the appropriateness of upgrades to structures or financing
upgrades; or
Protect local infrastructure from potential hurricane damage. 9
In 1999,10 the Legislature created the Hurricane Loss Mitigation Program (HLMP) within the
Department of Community Affairs (DCA). The HLMP is funded by an annual appropriation of $10 million
from the FHCF. The HLMP is currently located in the Division of Emergency Management (Division) as
the DCA was dissolved.11
1 Ch. 93-409, Laws of Florida.
2 See s. 215.555(1)(b), F.S.
3 S. 215.555(1)(c), F.S.
4 S. 215.555(1)(e), F.S.
5 Ss. 215.555(3) and 215.44(1), F.S.
6 A “private letter ruling,” or PLR, is a written statement issued to a taxpayer that interprets and applies tax laws to the
taxpayer’s specific set of facts. A PLR is issued to establish with certainty the federal tax consequences of a particular
transaction before the transaction is consummated or before the taxpayer’s return is filed. A PLR is issued in response to
a written request submitted by a taxpayer and is binding on the IRS if the tax payer fully and accurately described the
proposed transaction in the request and carries out the transaction as described. Internal Revenue Service, Tax Exempt
Bonds Private Letter Rulings: Some Basic Concepts, https://www.irs.gov/tax-exempt-bonds/teb-private-letter-ruling-some-
basic-concepts#:~:text=A%20private%20letter%2 0ruling%2C%20or,taxpayers%20or%20by%20IRS%20pers onnel. ( last
visited Jan. 21, 2022).
7 State Board of Administration of Florida, Florida Hurricane Catastrophe Fund Fiscal Year 2008-2009 Annual Report, p.
16,
https://www.sbafla.com/fhcf/Portals/FHCF/Content/Reports/Annual/20100413_SBA _CA TF_Annual_Report.pdf?ver=2016 -
06-08-121914-787 (last visited Feb. 26, 2021).
8 S. 215.555(7)(c), F.S.
9 Id.
10 Ch. 99-305, Laws of Fla.
11 S. 215.559, F.S.
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Of the $10 million annually appropriated to the HLMP, $3 million is directed towards retrofitting public
facilities for use as hurricane shelters. The Division must prioritize funds for projects included in the
annual Shelter Retrofit Report and projects in regional planning council areas with shelter deficits.12
The Division’s 2020 Shelter Retrofit Report indicates that significant success has been made toward
reducing the deficit of safe13 public hurricane evacuation shelter space (shelter space).14 The
combination of existing building surveys, retrofit projects, and the availability of retrofit and mitigation-
related funds, as well as the application of enhanced hurricane resistance design and construction
standards has increased the number of shelter spaces. 15 As of 2020, there are 1,060,767 shelter
spaces.16 Available shelter spaces were projected to increase to 1,120,174 by August 2021.17
The remaining $7 million of the $10 million appropriation must be used for programs that:
o Improve the wind resistance of residences and mobile homes, through loans, subsidies, grants,
demonstration projects, and direct assistance;
o Educate persons concerning the Florida Building Code cooperative programs with local
governments and the Federal Government; and
o Prevent or reduce losses or costs of rebuilding after a disaster.18
The $7 million allocated to these programs is subdivided. Forty percent ($2.8 million) is directed to the
Mobile Home Tie-Down Program (MHTDP)19, which is administered by Tallahassee Community
College (TCC). The MHTDP is used to mitigate future losses for mobile homes and to provide tie-
downs for mobile homes in communities throughout the state. 20
Over the years, the MHTDP has been reviewed and audited. In 2016, the Department of Financial
Services Bureau of Auditing (Bureau) audited the MHTP and determined that a contractual agreement
should exist between the Division and TCC because the allocated funds are classified as “grant and
aid.”21 The Bureau recommended a written agreement that incorporates the relevant statutory
requirements, a clear scope of work, deliverables, monitoring, and financial consequences. 22 The
Division and TCC subsequently executed a written agreement for the program that incorporated the
Bureau’s recommendations, including a scope of work. 23 The program’s scope of work requires the
mobile home tie-down improvements under this program to meet or exceed the standards established
in Rules 15C-1.0101 through 15C-1.0109, F.A.C.24 However, the program is not intended to bring an
existing mobile home up to building code standards. 25
12 S. 215.559(1)(b), F.S.
13 “‘Safe’ is defined as meeting the intent of American Red Cross (ARC) Hurricane Evacuation Shelter Selection
Standards (June 2018).” Florida Division of Emergency Management, 2020 State Retrofit Report (Nov. 2020),
https://portal.floridadisaster.org/shelters/External/ Current/2020%20S RR/2020%20Shelt er%20Retrofit%20Report.pdf (last
visited Jan. 21, 2022).
14 Id.
15 Id.
16 Id.
17 Id. As of the date of this analysis, a 2021 State Retrofit Report has not been published by the Division. Therefore,
confirmation of the available increase in shelter space is currently unavailable.
18 S. 215.559(1)(a), F.S.
19 S. 215.555(2)(a), F.S.
20 Florida Division of Emergency Management, Florida Hurricane Loss Mitigation Program 2020 Annual Report (Jan. 1,
2021),
https://portal.floridadisaster.org/mitigation/HLMP/Internet%20Documents/Reports/2020%20HLMP% 20Annual%20Report.
pdf (last visited Jan. 21, 2022).
21 May 10, 2016 Letter from Department of Financial Services Bureau of Auditing to Division of Emergency Management
Director Bryan Koon, https://www.myfloridacfo.com/division/aa/Aud_Act/docs/DEM%20Report%20dtd%205 -10-
2016_Redacted.pdf (last visited Jan. 21, 2022).
22 Id.
23 Id.
24 Department of Financial Services, Original Contract - D9042 (executed Aug. 7, 2018),
https://facts.fldfs.com/Search/ContractDetail.aspx?AgencyId= 310000&ContractId= D9042 (last visited Jan. 21, 2022).
25 Tallahassee Community College, Mobile Home Tie-Down Program, https://www.tcc.fl.edu/about/college/administrative-
services/sponsored-programs/mobile-home-tie-down-program/ (last visited Jan. 21, 2022).
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In fiscal year 2020-2021, nine counties (Brevard, Charlotte, Collier, Lake, Lee, Marion, Osceola,
Pinellas, Polk) benefitted from the Mobile Home Tie-Down Program. A total of 686 manufactured or
mobile homes were retrofitted.26 Currently, the program is not accepting new applications, as the
waiting list exceeds five years; new applications will be accepted once the waiting list is reduced to
three years.27
Ten percent ($700,000) of the $7 million allocated above is directed to the Florida International
University (FIU) center for hurricane research.28 During the 2020-2021 fiscal year, FIU conducted
research including the following:
o Quantification of Wind Driven Rain Intrusion Through Shuttered Sliding Glass Door
Systems;
o Aerodynamic Loading of Residential Buildings Subject to Experimental Downbursts and
Hurricanes;
o Codification Wind-induced Loads on Irregular Shape Buildings Phase II;
o Development of Integrated Storm Tide and Freshwater Flooding Model Phase 4;
o Improving Individual Preparedness for Hurricanes; Lessons to be Learned form Longitudinal
Survey Data Collected from Florida; and
o Education and Outreach Programs to Convey the Benefits of Various Hurricane Loss
Mitigation Devices and Techniques.29
The remaining 50 percent ($3.5 million) of the $7 million allocated above is used to fund the Hurricane
Loss Mitigation Program Retrofit Grant (Grant) for the purpose of improving community resiliency.30
Funded activities include inspections, retrofits, and construction or modification of building components
designed to increase a structure’s ability to withstand hurricane conditions. 31
Under this Grant, eligible applicants are nonprofit organizations, qualified for-profit organizations, and
governmental entities.32 Homeowners are not eligible, but may partner with an eligible local
government.33 In the 2020-2021 fiscal year, 13 recipients received the grant to conduct wind mitigation
retrofits to homes. These recipients included:
o Calhoun County;
o Carrabelle;
o Centro Campesino;
o City of Bradenton;
o City of Deerfield Beach;
o City of Lauderdale Lakes;
o Franklin County;
o Gulf County;
o Memorial Health;
o Miami Dade Community Action & Human Services Department;
o North Lauderdale;
o Pompano Beach; and
o St. Lucie Habitat for Humanity.34
26 Florida Division of Emergency Management, Florida Hurricane Loss Mitigation Program 2021 Annual Report (Jan. 1,
2022). According to TCC, the number of mobile homes completed during the 2020-2021 fiscal year was significantly
impacted by COVID-19.
27 Tallahassee Community College, supra note 25.
28 S. 215.559(3), F.S.
29 Florida Division of Emergency Management, supra note 26.
30 Florida Division of Emergency Management, Hurricane Loss Mitigation Program,
https://www.floridadisaster.org/dem/mitigation/hurricane -loss-mitigation-program/ (last visited Jan. 21, 2022).
31 Id.
32 Id.
33 Id.
34 Florida Division of Emergency Management, supra note 26.
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Seven additional projects were funded that did not involve residential wind retrofitting, including the
following: Banyan Health, City of Edgewater, City of Flagler Beach, City of Panama City, DeSoto
County Board of County Commissioners, and West Palm Beach Housing Authority.35
Current law requires the Division, with the exception of the hurricane research program conducted by
FIU, to develop these programs in consultation with an advisory council (Council). 36 The Council also
reviews and approves FIU’s hurricane research work plan.37 The Council must consist of one
representative designated by each of the following:
Chief Financial Officer;
Florida Homebuilders Association;
Florida Insurance Council;
Federation of Manufactured Home Owners;
Florida Association of Counties; and
Florida Manufactured Housing Association.38
The Division is required to submit a full report and evaluation of these activities on January 1st each
year.39 The report must be submitted to the Speaker of the House of Representatives, the President of
the Senate, and the Majority and Minority Leaders of the House of Representatives and the Senate.40
The Office of Insurance Regulation (OIR) must review the report and make recommendations to the
insurance industry as deemed appropriate by the OIR. 41 The recommendations may be used by
insurers for potential discounts or rebates.42
Below are the Hurricane Loss Mitigation Program Activities for fiscal year 2020-2021:
Hurricane Loss Mitigation Program Activities for Fiscal Year 2020-
202143
Shelter Retrofit Program $3,000,000
HLMP Retrofit Grant $3,500,000
Manufactured Homes $2,800,000
Hurricane Mitigation Research $700,000
TOTAL $10,000,000
The statute that creates the HLMP, also created the Manufactured Housing and Mobile Home
Mitigation and Enhancement Program (MHMHMEP) to mitigate or enhance manufactured and mobile
homes in specified areas of the state.44 However, the MHMHMEP does not share in the $10 million
appropriated from the FHCF and is not currently funded. The MHMHMEP also references an obsolete
rate standard for mobile home insurance policies issued by Citizens Property Insurance Corporation.45
Section 215.559, F.S., relating to the Hurricane Loss Mitigation Program is scheduled to be repealed on
June 30, 2022.46
Effect of the Bill
35 Id.
36 S. 215.559(4), F.S.
37 S. 215.559(3), F.S.
38 S. 215.559(4), F.S.
39 S. 215.559(6), F.S.
40 Id.
41 Id.
42 Id.
43 Florida Division of Emergency Management, supra note 26.
44 S. 215.559(2)(b), F.S.
45 S. 215.559(2)(b)3., F.S.
46 S. 215.559(7), F.S.
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DATE: 1/31/2022
The bill saves the HLMP from repeal by extending the expiration date of the relevant statute to Jun 30,
2032.
In relation to the mobile home program, the bill also removes obsolete rate standard language
regarding mobile home insurance policies issued by Citizens.
B. SECTION DIRECTORY:
Section 1. Amends s. 215.559, F.S., related to Hurricane Loss Mitigation Program.
Section 2. Provides that the bill is effective upon becoming law.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
Annually, $10 million is appropriated from the Florida Hurricane Catastrophe Fund to the Hurricane
Loss Mitigation Program. Should this bill become law, these funds would continue to be
appropriated until June 30, 2032.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
To the extent that research and program activities conducted through the HLMP strengthen structures,
educate the public, and reduce property losses, the private sector will benefit. However, the impact is
indeterminate.
D. FISCAL COMMENTS:
Pursuant to the PLR, failure to spend FHCF funds on hurricane loss mitigation efforts could jeopardize
the tax-exempt status of the FHCF. Additionally, current law specifies that the Legislature must
appropriate no less than $10 million, but not more than 35 percent, from the investment income of the
FHCF from the prior fiscal year for hurricane mitigation effort; it does not specify what occurs if the
investment income from a given fiscal year is not sufficient for the Legislature to meet these
requirements (i.e., if allocating $10 million would require the allocation of more than 35 percent of the
FHCF’s investment income for the prior fiscal year).
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
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DATE: 1/31/2022
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill neither authorizes nor requires administrative rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
STORAGE NAME: h0837.IBS PAGE: 7
DATE: 1/31/2022
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 837 2022
1 A bill to be entitled
2 An act relating to the Hurricane Loss Mitigation
3 Program; amending s. 215.559, F.S.; deleting
4 construction relating to Citizens Property Insurance
5 Corporation coverage rates; delaying the future repeal
6 of the Hurricane Loss Mitigation Program; providing an
7 effective date.
8
9 Be It Enacted by the Legislature of the State of Florida:
10
11 Section 1. Paragraph (b) of subsection (2) and subsection
12 (7) of section 215.559, Florida Statutes, are amended to read:
13 215.559 Hurricane Loss Mitigation Program.—A Hurricane
14 Loss Mitigation Program is established in the Division of
15 Emergency Management.
16 (2)
17 (b)1. The Manufactured Housing and Mobile Home Mitigation
18 and Enhancement Program is established. The program shall
19 require the mitigation of damage to or the enhancement of homes
20 for the areas of concern raised by the Department of Highway
21 Safety and Motor Vehicles in the 2004-2005 Hurricane Reports on
22 the effects of the 2004 and 2005 hurricanes on manufactured and
23 mobile homes in this state. The mitigation or enhancement must
24 include, but need not be limited to, problems associated with
25 weakened trusses, studs, and other structural components caused
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 837 2022
26 by wood rot or termite damage; site-built additions; or tie-down
27 systems and may also address any other issues deemed appropriate
28 by Tallahassee Community College, the Federation of Manufactured
29 Home Owners of Florida, Inc., the Florida Manufactured Housing
30 Association, and the Department of Highway Safety and Motor
31 Vehicles. The program shall include an education and outreach
32 component to ensure that owners of manufactured and mobile homes
33 are aware of the benefits of participation.
34 2. The program shall be a grant program that ensures that
35 entire manufactured home communities and mobile home parks may
36 be improved wherever practicable. The moneys appropriated for
37 this program shall be distributed directly to Tallahassee
38 Community College for the uses set forth under this sub section.
39 3. Upon evidence of completion of the program, the
40 Citizens Property Insurance Corporation shall grant, on a pro
41 rata basis, actuarially reasonable discounts, credits, or other
42 rate differentials or appropriate reductions in deductibles for
43 the properties of owners of manufactured homes or mobile homes
44 on which fixtures or construction techniques that have been
45 demonstrated to reduce the amount of loss in a windstorm have
46 been installed or implemented. The discount on the premium must
47 be applied to subsequent renewal premium amounts. Premiums of
48 the Citizens Property Insurance Corporation must reflect the
49 location of the home and the fact that the home has been
50 installed in compliance with building codes adopted after
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 837 2022
51 Hurricane Andrew. Rates resulting from the completion of the
52 Manufactured Housing and Mobile Home Mitigation and Enhancement
53 Program are not considered competitive rates for the purposes of
54 s. 627.351(6)(d)1. and 2.
55 4. On or before January 1 of each year, Tallahassee
56 Community College shall provide a report of activities under
57 this subsection to the Governor, the President of the Senate,
58 and the Speaker of the House of Representatives. The report must
59 set forth the number of homes that have taken advantage of the
60 program, the types of enhancements and improvements made to the
61 manufactured or mobile homes and attachments to such homes, and
62 whether there has been an increase in availability of insurance
63 products to owners of manufactured or mobile homes.
64
65 Tallahassee Community College shall develop the programs set
66 forth in this subsection in consultation with the Federation of
67 Manufactured Home Owners of Florida, Inc., the Florida
68 Manufactured Housing Association, and the Department of Highway
69 Safety and Motor Vehicles. The moneys appropriated for the
70 programs set forth in this subsection shall be distributed
71 directly to Tallahassee Community College to be used as set
72 forth in this subsection.
73 (7) This section is repealed June 30, 2032 2022.
74 Section 2. This act shall take effect upon becoming a law.
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CODING: Words stricken are deletions; words underlined are additions.
hb0837-00
INSURANCE & BANKING SUBCOMMITTEE
HB 837 by Rep. Willhite
Hurricane Loss Mitigation Program
AMENDMENT SUMMARY
February 2, 2022
Amendment 1 by Rep. Willhite (strike-all): The strike-all amendment contains the current
provisions of the bill and makes the following modifications and clarifications:
• Establishes that the funds currently appropriated for the retrofitting of hurricane shelters
may also be used for construction of hurricane shelters.
• Transfers the Manufactured Housing and Mobile Home Mitigation and Enhancement
Program, which includes the Mobile Home Tie-Down Program, from Tallahassee
Community College to Gulf Coast State College.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 837 (2022)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Willhite offered the following:
4
5 Amendment (with title amendment)
6 Remove everything after the enacting clause and insert:
7 Section 1. Paragraph (b) of subsection (1), subsection (2),
8 and subsection (7) of section 215.559, Florida Statutes, are
9 amended to read:
10 215.559 Hurricane Loss Mitigation Program.—A Hurricane
11 Loss Mitigation Program is established in the Division of
12 Emergency Management.
13 (1) The Legislature shall annually appropriate $10 million
14 of the moneys authorized for appropriation under s.
15 215.555(7)(c) from the Florida Hurricane Catastrophe Fund to the
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 837 (2022)
Amendment No. 1
16 division for the purposes set forth in this section. Of the
17 amount:
18 (b) Three million dollars in funds shall be used to
19 construct or retrofit existing facilities used as public
20 hurricane shelters. Each year the division shall prioritize the
21 use of these funds for projects included in the annual report of
22 the Shelter Development Retrofit Report prepared in accordance
23 with s. 252.385(3). The division must give funding priority to
24 projects in regional planning council regions that have shelter
25 deficits and to projects that maximize the use of state funds.
26 (2)(a) Forty percent of the total appropriation in
27 paragraph (1)(a) shall be used to inspect and improve tie-downs
28 for mobile homes.
29 (b)1. The Manufactured Housing and Mobile Home Mitigation
30 and Enhancement Program is established. The program shall
31 require the mitigation of damage to or the enhancement of homes
32 for the areas of concern raised by the Department of Highway
33 Safety and Motor Vehicles in the 2004-2005 Hurricane Reports on
34 the effects of the 2004 and 2005 hurricanes on manufactured and
35 mobile homes in this state. The mitigation or enhancement must
36 include, but need not be limited to, problems associated with
37 weakened trusses, studs, and other structural components caused
38 by wood rot or termite damage; site-built additions; or tie-down
39 systems and may also address any other issues deemed appropriate
40 by the Gulf Coast State College Tallahassee Community College,
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 837 (2022)
Amendment No. 1
41 the Federation of Manufactured Home Owners of Florida, Inc., the
42 Florida Manufactured Housing Association, and the Department of
43 Highway Safety and Motor Vehicles. The program shall include an
44 education and outreach component to ensure that owners of
45 manufactured and mobile homes are aware of the benefits of
46 participation.
47 2. The program shall be a grant program that ensures that
48 entire manufactured home communities and mobile home parks may
49 be improved wherever practicable. The moneys appropriated for
50 this program shall be distributed directly to the Gulf Coast
51 State College Tallahassee Community College for the uses set
52 forth under this subsection.
53 3. Upon evidence of completion of the program, the
54 Citizens Property Insurance Corporation shall grant, on a pro
55 rata basis, actuarially reasonable discounts, credits, or other
56 rate differentials or appropriate reductions in deductibles for
57 the properties of owners of manufactured homes or mobile homes
58 on which fixtures or construction techniques that have been
59 demonstrated to reduce the amount of loss in a windstorm have
60 been installed or implemented. The discount on the premium must
61 be applied to subsequent renewal premium amounts. Premiums of
62 the Citizens Property Insurance Corporation must reflect the
63 location of the home and the fact that the home has been
64 installed in compliance with building codes adopted after
65 Hurricane Andrew. Rates resulting from the completion of the
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 837 (2022)
Amendment No. 1
66 Manufactured Housing and Mobile Home Mitigation and Enhancement
67 Program are not considered competitive rates for the purposes of
68 s. 627.351(6)(d)1. and 2.
69 4. On or before January 1 of each year, the Gulf Coast
70 State College Tallahassee Community College shall provide a
71 report of activities under this subsection to the Governor, the
72 President of the Senate, and the Speaker of the House of
73 Representatives. The report must set forth the number of homes
74 that have taken advantage of the program, the types of
75 enhancements and improvements made to the manufactured or mobile
76 homes and attachments to such homes, and whether there has been
77 an increase in availability of insurance products to owners of
78 manufactured or mobile homes.
79
80 The Gulf Coast State College Tallahassee Community College shall
81 develop the programs set forth in this subsection in
82 consultation with the Federation of Manufactured Home Owners of
83 Florida, Inc., the Florida Manufactured Housing Association, and
84 the Department of Highway Safety and Motor Vehicles. The moneys
85 appropriated for the programs set forth in this subsection shall
86 be distributed directly to the Gulf Coast State College
87 Tallahassee Community College to be used as set forth in this
88 subsection.
89 (7) This section is repealed June 30, 2032 2022.
90
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 837 (2022)
Amendment No. 1
91
92 -----------------------------------------------------
93 T I T L E A M E N D M E N T
94 Remove everything before the enacting clause and insert:
95 A bill to be entitled
96 An act relating to the Hurricane Loss Mitigation
97 Program; amending s. 215.559, F.S.; revising the use
98 of certain funds from the Florida Hurricane
99 Catastrophe Fund to also include construction of
100 certain facilities; revising the title of a certain
101 annual report; revising provisions to require the
102 Manufactured Housing and Mobile Home Mitigation and
103 Enhancement Program to be operated by Gulf Coast State
104 College; deleting construction related to Citizens
105 Property Insurance Corporation coverage rates;
106 delaying the future repeal of the Hurricane Loss
107 Mitigation Program; providing an effective date.
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HB 1141
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1141 Bail Bond Agents
SPONSOR(S): Plakon
TIED BILLS: IDEN./SIM. BILLS: SB 822
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee Herendeen Luczynski
2) State Administration & Technology
Appropriations Subcommittee
3) Judiciary Committee
4) Commerce Committee
SUMMARY ANALYSIS
A bail bond is a guarantee by a third-party that a defendant in a criminal case will appear in court at all
scheduled proceedings. The Department of Financial Services, Division of Insurance Agent and Agency
Services (DFS), issues licenses for temporary bail bond agents and bail bond agents.
A bail bond agent may execute or sign bonds, handle collateral receipts, deliver bonds to appropriate
authorities, or operate an agency or branch agency at a separate location from the supervising bail bond
agent, managing general agent, or the insurer that employs the bail bond agent. To be fully licensed, an
applicant must complete a 120-hour basic certification course, provide proof of 1,540 hours of work under a
temporary bail bond agent license, and pass a licensing exam.
A temporary bail bond agent must be accompanied by a supervising bail bond agent when apprehending,
arresting, or surrendering defendants to the authorities. A person holding the temporary license must complete
the required coursework and licensing exam within the four years prior to application for the temporary license,
and cannot take the licensing exam unless he or she has completed 1,540 hours of supervised paid
employment during a one-year period after obtaining the temporary license.
The bill eliminates the temporary bail bond license. Instead of completing a one-year apprenticeship, qualified
applicants who are eligible to work in the United States and pass a criminal background check could become a
bail bond agent or professional bail bond agent by completing a 120-hour basic certification course during the
two years prior to application and passing a licensing exam.
The bill also increases the qualifications for a bail bond agent in charge of an agency or branch location; such
person must have worked as a licensed and appointed bail bond agent during the two years prior to being
designated as the agent in charge.
Additionally, the bill requires that continuing education be classroom based, elevates the punishment for
assault and/or battery of a bail bond agent, and adjusts forfeiture laws to increase the amount of a bond a court
returns to a bail bond agent or insurance carrier if the forfeiture of a bond is rescinded.
The bill may have an indeterminate, insignificant impact on state or local governments.
The bill has an effective date of July 1, 2022.
FULL ANALYSIS
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h1141.IBS
DATE: 1/31/2022
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
A bail bond is a guarantee by a third-party that a defendant in a criminal case will appear in court at all
scheduled proceedings. A bail bond agent posts a surety bond to secure the defendant’s release from
custody; the defendant provides money or other collateral to secure the bail bond and forfeits the
premium (10 percent of the amount of bail set by the court) if he or she fails to appear in court or
comply with other conditions of the bond. Bail bond agents must be licensed by DFS and appointed by
insurance carriers to execute bail bonds. If a defendant fails to appear in court, the bail bond agent may
apprehend and detain the defendant until the defendant is surrendered to the authorities. 1
Bail bond agents may execute or sign bonds, handle collateral receipts, deliver bonds to appropriate
authorities, or operate an agency or branch agency at a separate location from the supervising bail
bond agent, managing general agent, or insurer that employs the bail bond agent.2
Licensure as a Bail Bond Agent
DFS issues a temporary license that is effective for 18 months and permits a licensee to work under the
direct supervision of a licensed and appointed bail bond agent; a limited surety license that allows a bail
bond agent to execute bail bonds; and a professional bail bond agent that allows the agent to obtain
collateral from a criminal defendant in return for the execution of a bail bond with the court.
To become a temporary bail bond agent, an applicant must have completed a 120-hour basic
certification course during the four years prior to application and have an offer of employment from a
supervising bail bond agent. A temporary bail bond agent must be accompanied by a supervising bail
bond agent when apprehending, arresting, or surrendering defendants to the authorities. After one year
of work under a temporary license (which must include at least 1,540 hours of paid employment under
the supervision of a supervising bail bond agent), the temporary licensee may apply for a regular bail
bond agent’s license and take the required licensing examination. 3
After completing the one-year apprenticeship, a temporary licensee who passes a licensing exam and
criminal background check may become a:
Bail bond agent (also known as limited surety agent) who may execute or countersign bail bonds in
connection with judicial proceedings; or
Professional Bail Bond Agent, who may pledge U.S. currency, postal money orders, or cashier’s
check as security for a bail bond in connection with a judicial proceeding and receives or is
promised money or things of value in return.4
All applicants for bail bond licenses submit fingerprints for a national criminal background check and
pay an application fee. Bail bond agents may not have been convicted of a felony, must be age 18 or
older, and must be eligible to work in the United States. A bail bond agent must be appointed by a
licensed insurer and the insurer must report the appointment to DFS. A bail bond agent may not charge
a premium other than the rate that has been approved by the Office of Insurance Regulation, and must
retain records related to any bail bonds the agent has executed or countersigned for at least three
years after the liability of the surety has been terminated. Additionally, bail bond agents must register
with the sheriff and the clerk of the circuit court in the county where the bail bond agent resides. Bail
bond agents may not solicit clients at a jail, prison, or courthouse, and may not pay fees for referrals
from any person working in the law enforcement community. 5
1 Ss. 648.24 and 624.26, F.S. Also see Department of Financial Services, Division of Consumer Services, Bail Bonds
Overview, https://www.myfloridacfo.com/division/consumers/understandingcoverage/bailbondsoverview.htm (last visited
Jan. 28, 2022).
2 S. 648.355, F.S.
3 Id. and R. 69B-221.051, F.A.C.
4 S. 648.25, F.S.
5 Ss. 648.355, 648.33, 648.34, 648.35, 648.36, 648.382, 648.42, and 648.44, F.S.
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Effect of the Bill
The bill eliminates the requirement that a person who wishes to be licensed as a bail bond agent serve
a one-year apprenticeship under a supervising bail bond agent.
To do this, the bill deletes all statutory language related to the temporary bail agent license, including
the definition of a temporary bail bond agent, as well as qualifications for licensure as a temporary bail
bond agent, appointment as a temporary bail bond agent, and all cross references to the term
temporary bail bond agent.
Ownership of a Bail Bond Agency
The owner of a bail bond agency must be a licensed and appointed bail bond agent.6 The owner or
operator of a bail bond agency must designate a primary bail bond agent who is responsible for the
overall operation and management of a bail bond agency location and file the name and license
number of the primary bail bond agent and the address of the bail bond agency with DFS. A primary
bail bond agent may supervise only one location, is responsible for hiring employees and may not
employ or contract with any person who has been found guilty of a felony.7
Effect of the Bill
The bill requires that the primary bail bond agent who is designated to supervise a bail bond agency or
branch location must have worked as a licensed and appointed bail bond agent during the two years
prior to being designated as the agent in charge of a bail bond agency or branch location.
Continuing Education
Bail bond agents must complete at least 14 hours of continuing education every two years. 8 Schools
that offer continuing education must be approved and certified by DFS, and must offer a minimum of
three classroom-instruction continuing education classes per calendar year. Continuing education
classes must consist of at least two hours of approved coursework and be taught by a supervising
instructor who is approved by DFS.9
Effect of the Bill
The bill adds the words “classroom instruction” to the continuing education requirements, to ensure that
bail bond agents are taking the required hours of continuing education in the presence of a supervising
instructor.
Assault or Battery on Law Enforcement Officers
Florida law increases criminal penalties for assault and/or battery of the following persons, while
engaged in the lawful performance of their duties: law enforcement officer, firefighter, emergency
medical care provider, railroad special officer, traffic accident investigation officer, nonsworn law
enforcement agency employee who is certified as an agency inspector, blood alcohol analyst, breath
test operator while such employee is in uniform and engaged in processing, testing, evaluating,
analyzing, or transporting a person who is detained or under arrest for DUI, law enforcement explorer,
traffic infraction enforcement officer, parking enforcement specialist, person licensed as a security
officer and wearing a uniform that bears at least one patch or emblem that is visible at all times that
clearly identifies the employing agency and that clearly identifies the person as a licensed security
officer, or a security officer employed by the board of trustees of a community college. 10
6 S. 648.285, F.S.
7 Ss. 648.25(6) and 648.387, F.S.
8 S. 648.385, F.S.
9 S. 648.386, F.S.
10 S. 784.07(2), F.S.
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The law elevates assault and/or battery upon any of the persons listed above from a second-degree to
first-degree misdemeanor. Battery is elevated from a first-degree misdemeanor to a third-degree felony.
Aggravated assault is elevated from a third-degree felony to a second-degree felony. And aggravated
battery is elevated from a second-degree felony to a first-degree felony.11
Effect of the Bill
The bill adds bail bond agent to the list of persons for whom the offenses of assault and/or battery are
reclassified to provide stiffer penalties.
Forfeiture of a Bail Bond
When a defendant in a criminal case who has been released on bond fails to appear in court on the
required date and at the required time, the court declares any bonds or money deposited as bail
forfeited.12 If a defendant surrenders or is apprehended and surrendered to the authorities within two
years of forfeiture, the court rescinds forfeiture of a bond, based on the following schedule:
Within 90 days of forfeiture, the court rescinds up to 100 percent of the bond;
Within 180 days of forfeiture, the court rescinds up to 95 percent of the bond;
Within 270 days of forfeiture, the court rescinds up to 90 percent of the bond;
Within one year of forfeiture, the court rescinds up to 85 percent of the bond; and
Within two years of forfeiture, the court rescinds up to 50 percent of the bond.13
Effect of the Bill
The bill includes the death of a criminal defendant as a reason for the court to rescind the forfeiture of a
bond and eliminates statutory language that provided discretion in the amount of forfeiture that must be
rescinded. Under the amended schedule, if a defendant surrenders, is apprehended and surrendered
to the authorities, or dies within two years of forfeiture, the court must rescind the forfeiture of a bond
based on the following schedule:
Within 90 days of forfeiture, the court rescinds 100 percent of the bond;
Within 180 days of forfeiture, the court rescinds 95 percent of the bond;
Within 270 days of forfeiture, the court rescinds 90 percent of the bond;
Within one year of forfeiture, the court rescinds 85 percent of the bond; and
Within two years of forfeiture, the court rescinds 50 percent of the bond.
Additionally, if the state is not willing to seek extradition of a defendant from any jail or prison even
though the surety agent or insurer pledges to pay the costs of returning the defendant to court,
the bill requires the court to rescind forfeiture of a bond.
Effective Date
The bill provides an effective date of July 1, 2022.
B. SECTION DIRECTORY:
Section 1. Amends s. 648.25, F.S., Definitions.
Section 2. Amends s. 648.27, F.S., Licenses and appointments; general.
Section 3. Amends 648.285, F.S., Bond agency; ownership requirements.
11 Id.
12 S. 903.26, F.S.
13 S. 903.28, F.S.
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Section 4. Amends s. 648.30, F.S., Licensure and appointment required; prohibited acts; penalties.
Section 5. Amends 648.31, F.S., Appointment taxes and fees.
Section 6. Amends s. 648.34, F.S., Bail bond agents; qualifications.
Section 7. Amends s. 648.355, F.S., Temporary limited license as Limited surety agent or professional
bail bond agent; pending examination.
Section 8. Amend s. 648.382, F.S., Appointment of bail bond agents and temporary bail bond agents;
effective date of appointment.
Section 9. Amends s. 648.386, F.S., Qualifications for prelicensing and continuing education schools
and instructors.
Section 10. Creates s. 648.3875, F.S., Primary bail bond agents; qualifications.
Section 11. Amends s. 648.39, F.S., Termination of appointment of managing general agents, bail bond
agents, and temporary bail bond agents.
Section 12. Repeals s. 648.41, F.S., Termination of appointment of temporary bail bond agents.
Section 13. Amends 648.42, F.S., Registration of bail bond agents.
Section 14. Amends s. 648.44, F.S., Prohibitions; penalty.
Section 15. Amends s. 648.441, F.S., Furnishing supplies to unlicensed bail bond agent prohibited; civil
liability and penalty.
Section 16. Amends s. 648.50, F.S., Effect of suspension, revocation upon associated licenses and
licensees.
Section 17. Amends s. 784.07, F.S., Assault or battery of law enforcement officers, firefighters,
emergency medical care providers, public transit employees or agents, or other specified officers;
reclassification of offenses; minimum sentences.
Section 18. Amends s. 843.021, F.S., Unlawful possession of a concealed handcuff key.
Section 19. Amends s. 903.28, F.S., Remission of forfeiture; conditions.
Section 20. Provides an effective date of July 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
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DATE: 1/31/2022
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill has a positive fiscal impact on bail bond agencies because the bill adds an additional reason
for the court to rescind the forfeiture of a bond (death of the defendant) and eliminates discretion in the
amount of a forfeited bond that must be rescinded.
D. FISCAL COMMENTS:
Changes to licensing laws related to bail bond agents and bail bond agencies would temporarily
increase the administrative workload at DFS because agency rules and procedures, and accompanying
forms would require revision.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditures of funds; reduce the authority that counties or municipalities have to
raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill requires amendments to existing rules.
C. DRAFTING ISSUES OR OTHER COMMENTS:
The bill does not indicate what would happen to existing temporary bail bond licenses when temporary
bail bond provisions are removed from the law.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
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DATE: 1/31/2022
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1141 2022
1 A bill to be entitled
2 An act relating to bail bond agents; amending s.
3 648.285, F.S.; providing that persons who manage bail
4 bond agencies are subject to certain requirements;
5 revising requirements for persons who own, control, or
6 have pecuniary interests in bail bond agencies;
7 amending s. 648.355, F.S.; providing for licensure,
8 rather than temporary licensure, of limited surety
9 agents and professional bail bond agents; revising the
10 timeframe for an applicant's completion of specified
11 coursework before applying for licensure; amending s.
12 648.386, F.S.; revising criteria for approval and
13 certification as an approved limited surety agent and
14 professional bail bond agent continuing education
15 school to require continuing education classes to be
16 classroom instruction; creating s. 648.3875, F.S.;
17 specifying requirements for applications for
18 designation as a primary bail bond agent; specifying
19 qualifications for primary bail bond agents; repealing
20 s. 648.41, F.S., relating to termination of
21 appointment of temporary bail bond agents; amending s.
22 648.42, F.S.; revising the entities from whom a bail
23 bond agent must receive appointment before registering
24 as a bail bond agent; conforming provisions to changes
25 made by the act; amending ss. 648.25, 648.27, 648.30,
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26 648.31, 648.34, 648.382, 648.39, 648.44, 648.441, and
27 648.50, F.S.; conforming provisions to changes made by
28 the act; amending s. 784.07, F.S.; defining the term
29 "bail bond agent"; providing penalties for the assault
30 or battery upon a bail bond agent; amending s.
31 843.021, F.S.; conforming a provision to changes made
32 by the act; revising a defense to the charge of
33 unlawful possession of a concealed handcuff key;
34 amending s. 903.28, F.S.; specifying procedures for
35 remission of forfeitures of deceased defendants;
36 revising the amounts of forfeitures that must be
37 remitted; specifying procedures for remission of
38 forfeitures of defendants for whom the state is
39 unwilling to seek extradition; providing an effective
40 date.
41
42 Be It Enacted by the Legislature of the State of Florida:
43
44 Section 1. Subsection (8) of section 648.25, Florida
45 Statutes, is amended to read:
46 648.25 Definitions.—As used in this chapter, the term:
47 (8) "Temporary bail bond agent" means a person employed by
48 a bail bond agent or agency, insurer, or managing general agent,
49 and such licensee has the same authority as a licensed bail bond
50 agent, including presenting defendants in court; apprehending,
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51 arresting, and surrendering defendants to the proper
52 authorities, while accompanied by a supervising bail bond agent
53 or an agent from the same agency; and keeping defendants under
54 necessary surveillance. However, a temporary licensee may not
55 execute or sign bonds, handle collateral receipts, or deliver
56 bonds to appropriate authorities. A temporary licensee may not
57 operate an agency or branch agency separate from the location of
58 the supervising bail bond agent, managing general agent, or
59 insurer by whom the licensee is employed. This does not affect
60 the right of a bail bond agent or insurer to hire counsel or to
61 obtain the assistance of law enforcement officers.
62 Section 2. Subsection (5) of section 648.27, Florida
63 Statutes, is amended to read:
64 648.27 Licenses and appointments; general.—
65 (5)(a) The license of a bail bond agent shall continue in
66 force, without further examination unless deemed necessary by
67 the department, until suspended, revoked, or otherwise
68 terminated.
69 (b) The license of a temporary bail bond agent shall
70 continue in force until suspended, revoked, or otherwise
71 terminated.
72 Section 3. Subsection (1) of section 648.285, Florida
73 Statutes, is amended to read:
74 648.285 Bond agency; ownership requirements.—
75 (1) A person may not own, control, manage, or otherwise
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76 have a pecuniary interest in a bail bond agency unless such
77 individual is a licensed, and appointed, employed, and actively
78 engaged as a bail bond agent for at least 24 months following
79 the date of issuance of a license pursuant to s. 648.27 . Any
80 agency that is not in compliance with this subsection shall be
81 subject to the issuance of an immediate final order of
82 suspension of all operations until the agency achieves
83 compliance.
84 Section 4. Subsection (1) of section 648.30, Florida
85 Statutes, is amended to read:
86 648.30 Licensure and appointment required; prohibited
87 acts; penalties.—
88 (1) A person may not act in the capacity of a bail bond
89 agent or temporary bail bond agent or perform any of the
90 functions, duties, or powers prescribed for bail bond agents or
91 temporary bail bond agents under this chapter unless that person
92 is qualified, licensed, and appointed as provided in this
93 chapter.
94 Section 5. Section 648.31, Florida Statutes, is amended to
95 read:
96 648.31 Appointment taxes and fees.—The department shall
97 collect in advance all appointment taxes and fees for the
98 issuance of any appointment to a bail bond agent or temporary
99 bail bond agent, as provided in s. 624.501.
100 Section 6. Subsection (2) of section 648.34, Florida
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101 Statutes, is amended to read:
102 648.34 Bail bond agents; qualifications.—
103 (2) To qualify as a bail bond agent, it must affirmatively
104 appear at the time of application and throughout the period of
105 licensure that the applicant has complied with the provisions of
106 s. 648.355 and has obtained a temporary license pursuant to such
107 section and:
108 (a) The applicant Is a natural person who has reached the
109 age of 18 years and holds a high school diploma or its
110 equivalent.
111 (b) The applicant Is a United States citizen or legal
112 alien who possesses work authorization from the United States
113 Bureau of Citizenship and Immigration Services and is a resident
114 of this state. An individual who is a resident of this state
115 shall be deemed to meet the residence requirement of this
116 paragraph, notwithstanding the existence, at the time of
117 application for license, of a license in the applic ant's name on
118 the records of another state as a resident licensee of such
119 other state, if the applicant furnishes a letter of clearance
120 satisfactory to the department that his or her resident licenses
121 have been canceled or changed to a nonresident basis an d that he
122 or she is in good standing.
123 (c) Will maintain his or her The place of business of the
124 applicant will be located in this state and in the county where
125 the applicant will maintain his or her records and be actively
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126 engaged in the bail bond business and maintain an agency
127 accessible to the public which is open for reasonable business
128 hours.
129 (d) The applicant Is vouched for and recommended upon
130 sworn statements filed with the department by at least three
131 reputable citizens who are residents of the same counties in
132 which the applicant proposes to engage in the bail bond
133 business.
134 (e) The applicant Is a person of high character and
135 approved integrity and has not been convicted of or pleaded
136 guilty or no contest to a felony, a crime involving moral
137 turpitude, or a crime punishable by imprisonment of 1 year or
138 more under the law of any state, territory, or country, whether
139 or not a judgment or conviction has been entered.
140 (f) The applicant Has passed any required examination.
141 Section 7. Section 648.355, Florida Statutes, is amended
142 to read:
143 648.355 Temporary limited license as Limited surety agents
144 and agent or professional bail bond agents agent; qualifications
145 pending examination.—
146 (1) The department may, in its discretion, issue a
147 temporary license as a limited surety agent or professional bail
148 bond agent, subject to the following conditions:
149 (a) The applicant is a natural person at least 18 years of
150 age and holds a high school diploma or its equivalent.
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151 (b) The applicant is a United States citizen or legal
152 alien who possesses work authorization from the United States
153 Bureau of Citizenship and Immigration Services and is a resident
154 of this state. An individual who is a resident of this state
155 shall be deemed to meet the residence requirement of this
156 paragraph, notwithstanding the existence, at the time of
157 application for a temporary license, of a license in the
158 individual's name on the records of another state as a resident
159 licensee of such other state, if the applicant furnishes a
160 letter of clearance satisfactory to the department that the
161 individual's resident licenses have been canceled or changed to
162 a nonresident basis and that the individual is in good standing.
163 (c) The applicant is a person of high character and
164 approved integrity and has never been convicted of or pleaded
165 guilty or no contest to a felony, a crime involving moral
166 turpitude, or a crime punishable by imprisonment of 1 year or
167 more under the law of any state, territory, or country, whether
168 or not a judgment or conviction is entered.
169 (d) Within 2 4 years before prior to the date of
170 application for a temporary license, the applicant has
171 successfully completed a basic certification course in the
172 criminal justice system, consisting of not less than 120 hours
173 of classroom instruction with a passing grade of 80 percent or
174 higher and has successfully completed a correspondence course
175 for bail bond agents approved by the department.
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176 (e) The applicant must be employed full time at the time
177 of licensure, and at all times throughout the existence of the
178 temporary license, by only one licensed and appointed
179 supervising bail bond agent, who supervises the work of the
180 applicant and is responsible for the licensee's conduct in the
181 bail bond business. The applicant must be appointed by the same
182 insurers as the supervising bail bond agent. The supervising
183 bail bond agent shall certify monthly to the department under
184 oath, on a form prescribed by the department, the names and
185 hours worked each week of all temporary bail bond agents. Filing
186 a false certification is grounds for the immediate suspension of
187 the license and imposition of a $5,000 administrative fine. The
188 department may adopt rules that establish standards for the
189 employment requirements.
190 (e)(f) The application must be accompanied by an affidavit
191 verifying proposed employment and a report as to the applicant's
192 integrity and moral character on a form prescribed by the
193 department and executed by the proposed employer.
194 (f)(g) The applicant must file with the department
195 statements by at least three reputable citizens who are
196 residents of the same counties in which the applicant proposes
197 to engage as a temporary licensee.
198 (g)(h) The applicant's employer is responsible for the
199 bail bonding acts of any licensee under this section.
200 (2) All applicable license fees, as prescribed in s.
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201 624.501, must be paid before issuance of the temporary license.
202 (3) The temporary license shall be effective for 18
203 months, subject to earlier termination at the request of the
204 employer or if suspended or revoked by the department.
205 (3)(4) The applicant shall furnish, with the application
206 for temporary license, a complete set of the applicant's
207 fingerprints and a recent credential-sized, fullface photograph
208 of the applicant. The applicant's fingerprints shall be
209 certified by an authorized law enforcement officer. The
210 department shall not issue a temporary license under this
211 section until the department has received a report from the
212 Department of Law Enforcement and the Federal Bureau of
213 Investigation relative to the existence or nonexistence of a
214 criminal history report based on the applicant's fingerprints.
215 (4)(5) The department may collect a fee necessary to cover
216 the cost of a character and credit report made by an established
217 and reputable independent reporting service. The fee shall be
218 deposited to the credit of the Insurance Regulatory Trust Fund.
219 (6) After licensure as a temporary licensee for at least
220 12 months, such licensee may file an application for and become
221 eligible for a regular bail bond agent's license based on the
222 licensee's experience in the bail bond business and edu cation
223 pursuant to paragraph (1)(d) and, if otherwise qualified, take
224 the required bail bond agent's licensure examination. The
225 applicant and supervising bail bond agent must each file an
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226 affidavit under oath, on a form prescribed by the department,
227 verifying the required employment of the temporary agent before
228 issuance of the license.
229 (7) In no event shall a temporary licensee licensed under
230 this section perform any of the functions for which a bail bond
231 agent's license is required after expiration of the temporary
232 license without having passed the written examination as for a
233 regular bail bond agent's license.
234 (8)(a) A temporary licensee has the same authority as a
235 licensed bail bond agent, including presenting defendants in
236 court; apprehending, arresting, and surrendering defendants to
237 the proper authorities; and keeping defendants under necessary
238 surveillance. However, a temporary licensee must be accompanied
239 by a supervising bail bond agent or an agent from the same
240 agency when apprehending, arresting, or surrendering defendants
241 to authorities.
242 (b) A temporary licensee may not execute or sign bonds,
243 handle collateral receipts, deliver bonds to appropriate
244 authorities, or operate an agency or branch agency separate from
245 the location of the supervising bail bond agent, managing
246 general agent, or insurer by whom the licensee is employed.
247 (9) The department shall not issue a temporary bail bond
248 agent's license to any individual who has held such a temporary
249 license in this state within 2 years after the expiration of
250 such temporary bail bond agent's license.
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251 Section 8. Subsections (1) through (4) of section 648.382,
252 Florida Statutes, are amended to read:
253 648.382 Appointment of bail bond agents and temporary bail
254 bond agents; effective date of appointment.—
255 (1) Each insurer appointing a bail bond agent and each
256 insurer, managing general agent, or bail bond agent appointing a
257 temporary bail bond agent in this state must file the
258 appointment with the department and, at the same time, pay the
259 applicable appointment fees and taxes. A person appointed under
260 this section must hold a valid bail bond agent's or temporary
261 bail bond agent's license.
262 (2) Before Prior to any appointment, an appropriate
263 officer or official of the appointing insurer in the case of a
264 bail bond agent or an insurer, managing general agent, or bail
265 bond agent in the case of a temporary bail bond agent must
266 submit:
267 (a) A certified statement or affidavit to the department
268 stating what investigation has been made concerning the proposed
269 appointee and the proposed appointee's background and the
270 appointing person's opinion to the best of his or her knowledge
271 and belief as to the moral character and reputation of the
272 proposed appointee. In lieu of such certified statement or
273 affidavit, by authorizing the effectuation of an appointment for
274 a licensee, the appointing entity certifies to the department
275 that such investigation has been made and that the results of
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276 the investigation and the appointing person's opinion is that
277 the proposed appointee is a person of good moral character and
278 reputation and is fit to engage in the bail bond business;
279 (b) An affidavit under oath on a form prescribed by the
280 department, signed by the proposed appointee, stating that
281 premiums are not owed to any insurer and that the appointee will
282 discharge all outstanding forfeitures and judgments on bonds
283 previously written. If the appointee does not satisfy or
284 discharge such forfeitures or judgments, the former insurer
285 shall file a notice, with supporting documents, with the
286 appointing insurer, the former agent, and the department,
287 stating under oath that the licensee has failed to timely
288 satisfy forfeitures and judgments on bonds written and that the
289 insurer has satisfied the forfeiture or judgment from its own
290 funds. Upon receipt of such notification and supporting
291 documents, the appointing insurer shall immediately cancel the
292 licensee's appointment. The licensee may be reappointed only
293 upon certification by the former insurer that all forfeitures
294 and judgments on bonds written by the licensee have been
295 discharged. The appointing insurer or former agent may, within
296 10 days, file a petition with the department seeking relief from
297 this paragraph. Filing of the petition stays the duty of the
298 appointing insurer to cancel the appointment until the
299 department grants or denies the petition; and
300 (c) Any other information that the department reasonably
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301 requires concerning the proposed appointee.
302 (3) By authorizing the effectuation of an appointment for
303 a licensee, the appointing insurer certifies to the department
304 that the insurer will be bound by the acts of the bail bond
305 agent acting within the scope of his or her appointment , and, in
306 the case of a temporary bail bond agent, the appointing insurer,
307 managing general agent, or bail bond agent, as the case may be,
308 must certify to the department that he or she will supervise the
309 temporary bail bond agent's activities.
310 (4) Each appointing insurer or, managing general agent, or
311 bail bond agent must advise the department in writing within 5
312 days after receiving notice or learning that an appointee has
313 been arrested for, pled guilty or nolo contendere to, or been
314 found guilty of, a felony or other offense punishable by
315 imprisonment of 1 year or more under the law of any
316 jurisdiction, whether judgment was entered or withheld by the
317 court.
318 Section 9. Subsection (2) of section 648.386, Florida
319 Statutes, is amended to read:
320 648.386 Qualifications for prelicensing and continuing
321 education schools and instructors.—
322 (2) SCHOOLS AND CURRICULUM FOR CONTINUING EDUCATION
323 SCHOOLS.—In order to be considered for approval and
324 certification as an approved limited surety agent and
325 professional bail bond agent continuing education school, such
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326 entity must:
327 (a) Provide a minimum of three classroom-instruction
328 continuing education classes per calendar year.
329 (b) Submit a course curriculum to the department for
330 approval.
331 (c) Offer continuing education classes which are comprised
332 of a minimum of 2 hours of approved classroom-instruction
333 coursework and are taught by an approved supervising instructor
334 or guest lecturer approved by the entity or the supervising
335 instructor.
336 Section 10. Section 648.3875, Florida Statutes, is created
337 to read:
338 648.3875 Primary bail bond agents; qualifications.—
339 (1) An application for designation as a primary bail bond
340 agent must be submitted on forms prescribed by the department.
341 The application must include the applicant's full name; date of
342 birth; social security number; residence, business, and mail ing
343 addresses; contact telephone numbers, including a business
344 telephone number; e-mail address; and the number and date of
345 issuance of the applicant's license issued pursuant to s.
346 648.27.
347 (2) To qualify as a primary bail bond agent, it must
348 affirmatively appear at the time of application and throughout
349 the period of licensure that the applicant has complied with s.
350 648.285 and has been licensed and appointed for the 2 previous
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351 years.
352 Section 11. Section 648.39, Florida Statutes, is amended
353 to read:
354 648.39 Termination of appointment of managing general
355 agents and, bail bond agents, and temporary bail bond agents.—
356 (1) An insurer who terminates the appointment of a
357 managing general agent or, bail bond agent, or temporary bail
358 bond agent shall, within 10 days after such termination, file
359 written notice thereof with the department together with a
360 statement that it has given or mailed notice to the terminated
361 agent. Such notice filed with the department must state the
362 reasons, if any, for such termination. Information so furnished
363 the department is confidential and exempt from the provisions of
364 s. 119.07(1).
365 (2) Each insurer shall, within 5 days after terminating
366 the appointment of any managing general agent or, bail bond
367 agent, or temporary bail bond agent, give written notice thereof
368 to each clerk of the circuit court and sheriff with whom such
369 person is registered.
370 (3) An insurer that terminates the appointment of a
371 managing general agent or, bail bond agent, or temporary bail
372 bond agent may authorize such person to continue to attempt the
373 arrest and surrender of a defendant for whom a surety bond had
374 been written by the bail bond agent before prior to termination
375 and to seek discharge of forfeitures and judgments as provided
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376 in chapter 903.
377 Section 12. Section 648.41, Florida Statutes, is repealed.
378 Section 13. Section 648.42, Florida Statutes, is amended
379 to read:
380 648.42 Registration of bail bond agents.—A bail bond agent
381 may not become a surety on an undertaking unless he or she has
382 registered in the office of the sheriff and with the clerk of
383 the circuit court in the county in which the bail bond agent
384 resides. The bail bond agent may register in a like manner in
385 any other county, and any bail bond agent shall file a certified
386 copy of his or her appointment by power of attorney from each
387 insurer which he or she represents as a bail bond agent with
388 each of such officers. Registration and filing of a certified
389 copy of renewed power of attorney shall be performed by April 1
390 of each odd-numbered year. The clerk of the circuit court and
391 the sheriff shall not permit the registration of a bail bond
392 agent unless such bail bond agent is currently licensed by the
393 department and appointed by an insurer the department. Nothing
394 in this section shall prevent the registration of a temporary
395 licensee at the jail for the purposes of enabling the licensee
396 to perform the duties under such license as set forth in this
397 chapter.
398 Section 14. Subsections (1) and (2) and paragraphs (c) and
399 (d) of subsection (8) of section 648.44, Florida Statutes, are
400 amended to read:
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401 648.44 Prohibitions; penalty.—
402 (1) A bail bond agent or temporary bail bond agent may
403 not:
404 (a) Suggest or advise the employment of, or name for
405 employment, any particular attorney to represent his or her
406 principal.
407 (b) Directly or indirectly solicit business in or on the
408 property or grounds of a jail, prison, or other place where
409 prisoners are confined or in or on the property or grounds of
410 any court. The term "solicitation" includes the distribution of
411 business cards, print advertising, or other written or oral
412 information directed to prisoners or potential indemnito rs,
413 unless a request is initiated by the prisoner or a potential
414 indemnitor. Permissible print advertising in the jail is
415 strictly limited to a listing in a telephone directory and the
416 posting of the bail bond agent's or agency's name, address, and
417 telephone number in a designated location within the jail.
418 (c) Initiate in-person or telephone solicitation after
419 9:00 p.m. or before 8:00 a.m., in the case of domestic violence
420 cases, at the residence of the detainee or the detainee's
421 family. Any solicitation not prohibited by this chapter must
422 comply with the telephone solicitation requirements in ss.
423 501.059(2) and (4), 501.613, and 501.616(6).
424 (d) Wear or display any identification other than the
425 department issued or approved license or approved department
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426 identification, which includes a citation of the licensee's
427 arrest powers, in or on the property or grounds of a jail,
428 prison, or other place where prisoners are confined or in or on
429 the property or grounds of any court.
430 (e) Pay a fee or rebate or give or promise anything of
431 value to a jailer, police officer, peace officer, or committing
432 trial court judge or any other person who has power to arrest or
433 to hold in custody or to any public official or public employee
434 in order to secure a settlement, compromise, remission, or
435 reduction of the amount of any bail bond or estreatment thereof.
436 (f) Pay a fee or rebate or give anything of value to an
437 attorney in a bail bond matter, except in defense of any action
438 on a bond.
439 (g) Pay a fee or rebate or give or promise anything of
440 value to the principal or anyone in his or her behalf.
441 (h) Participate in the capacity of an attorney at a trial
442 or hearing of one on whose bond he or she is surety.
443 (i) Loiter in or about a jail, courthouse, or where
444 prisoners are confined.
445 (j) Accept anything of value from a principal for
446 providing a bail bond except the premium and transfer fee
447 authorized by the office, except that the bail bond agent may
448 accept collateral security or other indemnity from the principal
449 or another person in accordance with the provisions of s.
450 648.442, together with documentary stamp taxes, if applicable.
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451 No fees, expenses, or charges of any kind shall be permitted to
452 be deducted from the collateral held or any return premium due,
453 except as authorized by this chapter or rule of the department
454 or commission. A bail bond agent may, upon written agreement
455 with another party, receive a fee or compensation for returning
456 to custody an individual who has fled the jurisdiction of the
457 court or caused the forfeiture of a bond.
458 (k) Write more than one power of attorney per charge on a
459 bond, except in the case of a cosurety, unless the power of
460 attorney prohibits a cosurety.
461 (l) Execute a bond in this state on his or her own behalf.
462 (m) Execute a bond in this state if a judgment has been
463 entered on a bond executed by the bail bond agent, which has
464 remained unpaid for 35 days, unless the full amount of the
465 judgment is deposited with the clerk in accordance with s.
466 903.27(5).
467 (n) Make a statement or representation to a court, unless
468 such statement or representation is under oath. Such statement
469 or representation may not be false, misleading, or deceptive.
470 (o) Attempt to collect, through threat or coercion,
471 amounts due for the payment of any indebtedness rel ated to the
472 issuance of a bail bond in violation of s. 559.72.
473 (p) Conduct bail bond business with any person, other than
474 the defendant, on the grounds of the jail or courthouse for the
475 purpose of executing a bond.
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476 (2) The following persons or classes shall not be bail
477 bond agents, temporary bail bond agents, or employees of a bail
478 bond agent or a bail bond business and shall not directly or
479 indirectly receive any benefits from the execution of any bail
480 bond:
481 (a) Jailers or persons employed in any jail.
482 (b) Police officers or employees of any police department
483 or law enforcement agency.
484 (c) Committing trial court judges, employees of a court,
485 or employees of the clerk of any court.
486 (d) Sheriffs and deputy sheriffs or employees of any
487 sheriff's department.
488 (e) Attorneys.
489 (f) Persons having the power to arrest or persons who have
490 authority over or control of federal, state, county, or
491 municipal prisoners.
492 (8)
493 (c) Any law enforcement agency, state attorney's office,
494 court clerk, or insurer that is aware that a bail bond agent or
495 temporary bail bond agent has been convicted of or who has
496 pleaded guilty or no contest to a crime as described in
497 paragraph (a) shall notify the department of this fact.
498 (d) Upon the filing of an information or indictment
499 against a bail bond agent or temporary bail bond agent, the
500 state attorney or clerk of the circuit court shall immediately
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501 furnish the department a certified copy of the information or
502 indictment.
503 Section 15. Subsection (1) of section 648.441, Florida
504 Statutes, is amended to read:
505 648.441 Furnishing supplies to unlicensed bail bond agent
506 prohibited; civil liability and penalty.—
507 (1) An insurer, managing general agent, or bail bond
508 agent, or temporary bail bond agent appointed under this chapter
509 may not furnish to any person any blank forms, applications,
510 stationery, business card, or other supplies to be used in
511 soliciting, negotiating, or effecting bail bonds until such
512 person has received from the department a license to act as a
513 bail bond agent and is appointed by the insurer. This section
514 does not prohibit an unlicensed employee, under the direct
515 supervision and control of a licensed and appointed bail bond
516 agent, from possessing or executing in the bail bond agency, any
517 forms, except for powers of attorney, bond forms, and collateral
518 receipts, while acting within the scope of his or her
519 employment.
520 Section 16. Section 648.50, Florida Statutes, is amended
521 to read:
522 648.50 Effect of suspension, revocation upon associated
523 licenses and licensees.—
524 (1) Upon the suspension, revocation, or refusal to renew
525 or continue any license or appointment or the eligibility to
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526 hold a license or appointment of a bail bond agent or temporary
527 bail bond agent, the department shall at the same time likewise
528 suspend or revoke all other licenses or appointments and the
529 eligibility to hold any other such licenses or appointments
530 which may be held by the licensee under the Florida Insurance
531 Code.
532 (2) In case of the suspension or revocation of the license
533 or appointment, or the eligibility to hold a license or
534 appointment, of any bail bond agent, the license, appointment,
535 or eligibility of any and all bail bond agents who are members
536 of a bail bond agency, whether incorporated or unincorporated,
537 and any and all temporary bail bond agents employed by such bail
538 bond agency, who knowingly are parties to the act which formed
539 the ground for the suspension or revocation may likewise be
540 suspended or revoked.
541 (3) No person whose license as a bail bond agent or
542 temporary bail bond agent has been revoked or suspended shall be
543 employed by any bail bond agent, have any ownership interest in
544 any business involving bail bonds, or have any financial
545 interest of any type in any bail bond business during the period
546 of revocation or suspension.
547 Section 17. Present paragraphs (a) through (f) of
548 subsection (1) of section 784.07, Florida Statutes, are
549 redesignated as paragraphs (b) through (g), respectively, a new
550 paragraph (a) is added to that subsection, and subsection (2) of
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551 that section is amended, to read:
552 784.07 Assault or battery of law enforcement officers,
553 firefighters, emergency medical care providers, public transit
554 employees or agents, or other specified officers;
555 reclassification of offenses; minimum sentences.—
556 (1) As used in this section, the term:
557 (a) "Bail bond agent" means any individual appointed by an
558 insurer by power of attorney to execute or countersign bail
559 bonds in connection with judicial proceedings and w ho receives
560 or is promised money or other things of value for such duties or
561 any person licensed pursuant to s. 648.27.
562 (2) Whenever any person is charged with knowingly
563 committing an assault or battery upon a law enforcement officer,
564 a firefighter, an emergency medical care provider, a bail bond
565 agent, a railroad special officer, a traffic accident
566 investigation officer as described in s. 316.640, a nonsworn law
567 enforcement agency employee who is certified as an agency
568 inspector, a blood alcohol analyst, or a breath test operator
569 while such employee is in uniform and engaged in processing,
570 testing, evaluating, analyzing, or transporting a person who is
571 detained or under arrest for DUI, a law enforcement explorer, a
572 traffic infraction enforcement officer as described in s.
573 316.640, a parking enforcement specialist as defined in s.
574 316.640, a person licensed as a security officer as defined in
575 s. 493.6101 and wearing a uniform that bears at least one patch
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576 or emblem that is visible at all times that clearly identifies
577 the employing agency and that clearly identifies the person as a
578 licensed security officer, or a security officer employed by the
579 board of trustees of a community college, while the officer,
580 firefighter, emergency medical care provider, bail bond agent,
581 railroad special officer, traffic accident investigation
582 officer, traffic infraction enforcement officer, inspector,
583 analyst, operator, law enforcement explorer, parking enforcement
584 specialist, public transit employee or agent, or security
585 officer is engaged in the lawful performance of his or her
586 duties, the offense for which the person is charged shall be
587 reclassified as follows:
588 (a) In the case of assault, from a misdemeanor of the
589 second degree to a misdemeanor of the first degree.
590 (b) In the case of battery, from a misdemeanor of the
591 first degree to a felony of the third degree. Notwithstanding
592 any other provision of law, a person convicted of battery upon a
593 law enforcement officer committed in furtherance of a riot or an
594 aggravated riot prohibited under s. 870.01 shall be sentenced to
595 a minimum term of imprisonment of 6 months.
596 (c) In the case of aggravated assault, from a felony of
597 the third degree to a felony of the second degree.
598 Notwithstanding any other provision of law, any person c onvicted
599 of aggravated assault upon a law enforcement officer shall be
600 sentenced to a minimum term of imprisonment of 3 years.
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601 (d) In the case of aggravated battery, from a felony of
602 the second degree to a felony of the first degree.
603 Notwithstanding any other provision of law, any person convicted
604 of aggravated battery of a law enforcement officer shall be
605 sentenced to a minimum term of imprisonment of 5 years.
606 Section 18. Paragraph (a) of subsection (4) of section
607 843.021, Florida Statutes, is amended to read:
608 843.021 Unlawful possession of a concealed handcuff key.—
609 (4)(a) It is a defense to a charge of violating this
610 section that the person in custody and in possession of a
611 concealed handcuff key is:
612 1. A federal, state, or local law enforcement officer,
613 including a reserve or auxiliary officer, a licensed security
614 officer, or a private investigator as defined in s. 493.6101; or
615 2. A professional bail bond agent, temporary bail bond
616 agent, runner, or limited surety agent as defined in s. 648.25.
617 Section 19. Section 903.28, Florida Statutes, is amended
618 to read:
619 903.28 Remission of forfeiture; conditions.—
620 (1) On application within 2 years from forfeiture, the
621 court shall order remission of the forfeiture if it determines
622 that there was no breach of the bond.
623 (2) If the defendant surrenders or is apprehended or
624 deceased within 90 days after forfeiture, the court, on motion
625 at a hearing upon notice having been given to the clerk of the
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626 circuit court and the state attorney as required in subsection
627 (9) (8), shall direct remission of up to, but not more than, 100
628 percent of a forfeiture if the surety apprehended and
629 surrendered the defendant or if the apprehension or surrender of
630 the defendant was substantially procured or caused by the
631 surety;, or the surety has substantially attempted to procure or
632 cause the apprehension or surrender of the defendant, and the
633 delay has not thwarted the proper prosecution of the defendant;
634 or the defendant is deceased. In addition, remission shall be
635 granted when the surety did not substantially participate or
636 attempt to participate in the apprehension or surrender of the
637 defendant when the costs of returning the defendant to the
638 jurisdiction of the court have been deducted from the remission
639 and when the delay has not thwarted the proper prosecution of
640 the defendant.
641 (3) If the defendant surrenders or is apprehended or
642 deceased within 180 days after forfeiture, the court, on motion
643 at a hearing upon notice having been given to the clerk of the
644 circuit court and the state attorney as required in subsection
645 (9) (8), shall direct remission of up to, but not more than, 95
646 percent of a forfeiture if the surety apprehended and
647 surrendered the defendant or if the apprehension or surrender of
648 the defendant was substantially procured or caused by the
649 surety;, or the surety has substantially attempted to procure or
650 cause the apprehension or surrender of the defendant, and the
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651 delay has not thwarted the proper prosecution of the defendant;
652 or the defendant is deceased. In addition, remission shall be
653 granted when the surety did not substantially participate or
654 attempt to participate in the apprehension or surrender of the
655 defendant when the costs of returning the defendant to the
656 jurisdiction of the court have been deducted from the remission
657 and when the delay has not thwarted the proper prosecution of
658 the defendant.
659 (4) If the defendant surrenders or is apprehended or
660 deceased within 270 days after forfeiture, the court, on motion
661 at a hearing upon notice having been given to the clerk of the
662 circuit court and the state attorney as required in subsection
663 (9) (8), shall direct remission of up to, but not more than, 90
664 percent of a forfeiture if the surety apprehended and
665 surrendered the defendant or if the apprehension or surrender of
666 the defendant was substantially procured or caused by the
667 surety;, or the surety has substantially attempted to procure or
668 cause the apprehension or surrender of the defendant, and the
669 delay has not thwarted the proper prosecution of the defendant;
670 or the defendant is deceased. In addition, remission shall be
671 granted when the surety did not substantially participate or
672 attempt to participate in the apprehension or surrender of the
673 defendant when the costs of returning the defendant to the
674 jurisdiction of the court have been deducted from the remission
675 and when the delay has not thwarted the proper prosecution of
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676 the defendant.
677 (5) If the defendant surrenders or is apprehended or
678 deceased within 1 year after forfeiture, the court, on motion at
679 a hearing upon notice having been given to the clerk of the
680 circuit court and the state attorney as required in subsection
681 (9) (8), shall direct remission of up to, but not more than, 85
682 percent of a forfeiture if the surety apprehended and
683 surrendered the defendant or if the apprehension or surrender of
684 the defendant was substantially procured or caused by the
685 surety;, or the surety has substantially attempted to procure or
686 cause the apprehension or surrender of the defendant, and the
687 delay has not thwarted the proper prosecution of the defendant;
688 or the defendant is deceased. In addition, remission shall be
689 granted when the surety did not substantially participate or
690 attempt to participate in the apprehension or surrender of the
691 defendant when the costs of returning the defendant to the
692 jurisdiction of the court have been deducted from the remission
693 and when the delay has not thwarted the proper prosecution of
694 the defendant.
695 (6) If the defendant surrenders or is apprehended or
696 deceased within 2 years after forfeiture, the court, on motion
697 at a hearing upon notice having been given to the clerk of the
698 circuit court and the state attorney as required in subsection
699 (9) (8), shall direct remission of up to, but not more than, 50
700 percent of a forfeiture if the surety apprehended and
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701 surrendered the defendant or if the apprehension or surrender of
702 the defendant was substantially procured or caused by the
703 surety;, or the surety has substantially attempted to procure or
704 cause the apprehension or surrender of the defendant, and the
705 delay has not thwarted the proper prosecution of the defendant;
706 or the defendant is deceased. In addition, remission shall be
707 granted when the surety did not substantially participat e or
708 attempt to participate in the apprehension or surrender of the
709 defendant when the costs of returning the defendant to the
710 jurisdiction of the court have been deducted from the remission
711 and when the delay has not thwarted the proper prosecution of
712 the defendant.
713 (7) For a period of 2 years after the date of forfeiture,
714 if the state is unwilling to seek extradition of the defendant
715 from any jail or prison after a request by the surety agent or
716 the surety company, and contingent upon the surety agent o r
717 surety company consenting to pay all costs incurred by an
718 official in returning the defendant to the jurisdiction of the
719 court, up to the penal amount of the bond, the court shall
720 direct remission of 100 percent of the forfeiture.
721 (8) The remission of a forfeiture may not be ordered for
722 any reason other than as specified herein.
723 (9)(8) An application for remission must be accompanied by
724 affidavits setting forth the facts on which it is founded;
725 however, the surety must establish by further documentation or
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726 other evidence any claimed attempt at procuring or causing the
727 apprehension or surrender of the defendant before the court may
728 order remission based upon an attempt to procure or cause such
729 apprehension or surrender. The clerk of the circuit court an d
730 the state attorney must be given 20 days' notice before a
731 hearing on an application and be furnished copies of all papers,
732 applications, and affidavits. Remission shall be granted on the
733 condition of payment of costs, unless the ground for remission
734 is that there was no breach of the bond.
735 (10)(9) The clerk of the circuit court may enter into a
736 contract with a private attorney or into an interagency
737 agreement with a governmental agency to represent the clerk of
738 the court in an action for the remission of a forfeiture under
739 this section.
740 (11)(10) The clerk of the circuit court is the real party
741 in interest for all appeals arising from an action for the
742 remission of a forfeiture under this section.
743 Section 20. This act shall take effect July 1, 2022.
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INSURANCE & BANKING SUBCOMMITTEE
HB 1141 by Rep. Plakon
Bail Bond Agents
AMENDMENT SUMMARY
February 2, 2022
Amendment 1 by Rep. Plakon (Line 336): The amendment:
• Amends continuing education requirements for bail bond agents, to permit courses that
are delivered by a live instructor through video, webcast, or other virtual means.
• Amends the definition of “bail bond agent” in ch. 794, F.S., to correspond with the
definition in the Insurance Code.
• Makes technical changes to laws that govern investigations and disciplinary actions
against licensees.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1141 (2022)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Plakon offered the following:
4
5 Amendment (with title amendment)
6 Remove lines 141-605 and insert:
7 Section 7. Section 648.355, Florida Statutes, is amended
8 to read:
9 648.355 Temporary limited license as Limited surety agents
10 and agent or professional bail bond agents agent; qualifications
11 pending examination.—
12 (1) The department may, in its discretion, issue a
13 temporary license as a limited surety agent or professional bail
14 bond agent, subject to the following conditions:
15 (a) The applicant is a natural person at least 18 years of
16 age and holds a high school diploma or its equivalent.
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Amendment No. 1
17 (b) The applicant is a United States citizen or legal
18 alien who possesses work authorization from the United States
19 Bureau of Citizenship and Immigration Services and is a resident
20 of this state. An individual who is a resident of this state
21 shall be deemed to meet the residence requirement of this
22 paragraph, notwithstanding the existence, at the time of
23 application for a temporary license, of a license in the
24 individual's name on the records of another state as a resident
25 licensee of such other state, if the applicant furnishes a
26 letter of clearance satisfactory to the department that the
27 individual's resident licenses have been canceled or changed to
28 a nonresident basis and that the individual is in good standing.
29 (c) The applicant is a person of high character and
30 approved integrity and has never been convicted of or pleaded
31 guilty or no contest to a felony, a crime involving moral
32 turpitude, or a crime punishable by imprisonment of 1 year or
33 more under the law of any state, territory, or country, whether
34 or not a judgment or conviction is entered.
35 (d) Within 2 4 years before prior to the date of
36 application for a temporary license, the applicant has
37 successfully completed a basic certification course in the
38 criminal justice system, consisting of not less than 120 hours
39 of classroom instruction with a passing grade of 80 percent or
40 higher and has successfully completed a correspondence course
41 for bail bond agents approved by the department.
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Amendment No. 1
42 (e) The applicant must be employed full time at the time
43 of licensure, and at all times throughout the existence of the
44 temporary license, by only one licensed and appointed
45 supervising bail bond agent, who supervises the work of the
46 applicant and is responsible for the licensee's conduct in the
47 bail bond business. The applicant must be appointed by the same
48 insurers as the supervising bail bond agent. The supervising
49 bail bond agent shall certify monthly to the department under
50 oath, on a form prescribed by the department, the names and
51 hours worked each week of all temporary bail bond agents. Filing
52 a false certification is grounds for the immediate suspension of
53 the license and imposition of a $5,000 administrative fine. The
54 department may adopt rules that establish standards for the
55 employment requirements.
56 (e)(f) The application must be accompanied by an affidavit
57 verifying proposed employment and a report as to the applicant's
58 integrity and moral character on a form prescribed by the
59 department and executed by the proposed employer.
60 (f)(g) The applicant must file with the department
61 statements by at least three reputable citizens who are
62 residents of the same counties in which the applicant proposes
63 to engage as a temporary licensee.
64 (g)(h) The applicant's employer is responsible for the
65 bail bonding acts of any licensee under this section.
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Bill No. HB 1141 (2022)
Amendment No. 1
66 (2) All applicable license fees, as prescribed in s.
67 624.501, must be paid before issuance of the temporary license.
68 (3) The temporary license shall be effective for 18
69 months, subject to earlier termination at the request of the
70 employer or if suspended or revoked by the department.
71 (3)(4) The applicant shall furnish, with the application
72 for temporary license, a complete set of the applicant's
73 fingerprints and a recent credential-sized, fullface photograph
74 of the applicant. The applicant's fingerprints shall be
75 certified by an authorized law enforcement officer. The
76 department shall not issue a temporary license under this
77 section until the department has received a report from the
78 Department of Law Enforcement and the Federal Bureau of
79 Investigation relative to the existence or nonexistence of a
80 criminal history report based on the applicant's fingerprints.
81 (4) (5) The department may collect a fee necessary to cover
82 the cost of a character and credit report made by an established
83 and reputable independent reporting service. The fee shall be
84 deposited to the credit of the Insurance Regulatory Trust Fund.
85 (5) (6) After licensure as a temporary licensee for at
86 least 12 months, such licensee may file an application for and
87 become eligible for a regular bail bond agent's license based on
88 the licensee's experience in the bail bond business and
89 education pursuant to paragraph (1)(d) and, if otherwise
90 qualified, take the required bail bond agent's licensure
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Amendment No. 1
91 examination. The applicant and supervising bail bond agent must
92 each file an affidavit under oath, on a form prescribed by the
93 department, verifying the required employment of the temporary
94 agent before issuance of the license. Effective July 1, 2022,
95 any person licensed by the department as a temporary bail bond
96 agent may take the required bail bond agent’s licensure
97 examination and may file an application for a regular bail bond
98 agent’s license, if otherwise qualified for licensure.
99 (7) In no event shall a temporary licensee licensed under
100 this section perform any of the functions for which a bail bond
101 agent's license is required after expiration of the tem porary
102 license without having passed the written examination as for a
103 regular bail bond agent's license.
104 (8)(a) A temporary licensee has the same authority as a
105 licensed bail bond agent, including presenting defendants in
106 court; apprehending, arresting, and surrendering defendants to
107 the proper authorities; and keeping defendants under necessary
108 surveillance. However, a temporary licensee must be accompanied
109 by a supervising bail bond agent or an agent from the same
110 agency when apprehending, arresting, or surrendering defendants
111 to authorities.
112 (b) A temporary licensee may not execute or sign bonds,
113 handle collateral receipts, deliver bonds to appropriate
114 authorities, or operate an agency or branch agency separate from
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Amendment No. 1
115 the location of the supervising bail bond agent, managing
116 general agent, or insurer by whom the licensee is employed.
117 (6) (9)The department shall not issue a temporary bail bond
118 agent's license to any individual who has held such a temporary
119 license in this state within 2 years after the expiration of
120 such temporary bail bond agent's license. Effective July 1,
121 2022, the department shall not issue a temporary bail bond
122 agent’s license to any individual. Any individual currently
123 licensed as a temporary bail bond agent may continue to be
124 licensed in accordance with this law. If such temporary bail
125 bond agent license expires or is terminated, suspended, or
126 revoked, it may not be reinstated.
127 Section 8. Subsections (1) through (4) of section 648.382,
128 Florida Statutes, are amended to read:
129 648.382 Appointment of bail bond agents and temporary bail
130 bond agents; effective date of appointment.—
131 (1) Each insurer appointing a bail bond agent and each
132 insurer, managing general agent, or bail bond agent appointing a
133 temporary bail bond agent in this state must file the
134 appointment with the department and, at the same time, pay the
135 applicable appointment fees and taxes. A person appointed under
136 this section must hold a valid bail bond agent's or temporary
137 bail bond agent's license.
138 (2) Before Prior to any appointment, an appropriate
139 officer or official of the appointing insurer in the case of a
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Amendment No. 1
140 bail bond agent or an insurer, managing general agent, or bail
141 bond agent in the case of a temporary bail bond agent must
142 submit:
143 (a) A certified statement or affidavit to the department
144 stating what investigation has been made concerning the proposed
145 appointee and the proposed appointee's background and the
146 appointing person's opinion to the best of his or her knowledge
147 and belief as to the moral character and reputation of the
148 proposed appointee. In lieu of such certified statement or
149 affidavit, by authorizing the effectuation of an appointment for
150 a licensee, the appointing entity certifies to the department
151 that such investigation has been made and that the results of
152 the investigation and the appointing person's opinion is that
153 the proposed appointee is a person of good moral character and
154 reputation and is fit to engage in the bail bond business;
155 (b) An affidavit under oath on a form prescribed by the
156 department, signed by the proposed appointee, stating that
157 premiums are not owed to any insurer and that the appointee will
158 discharge all outstanding forfeitures and judgments on bonds
159 previously written. If the appointee does not satisfy or
160 discharge such forfeitures or judgments, the former insurer
161 shall file a notice, with supporting documents, with the
162 appointing insurer, the former agent, and the department,
163 stating under oath that the licensee has failed to timely
164 satisfy forfeitures and judgments on bonds written and that the
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Amendment No. 1
165 insurer has satisfied the forfeiture or judgment from its own
166 funds. Upon receipt of such notification and supporting
167 documents, the appointing insurer shall immediately cancel the
168 licensee's appointment. The licensee may be reappointed only
169 upon certification by the former insurer that all forfeitures
170 and judgments on bonds written by the licensee have been
171 discharged. The appointing insurer or former agent may, within
172 10 days, file a petition with the department seeking relie f from
173 this paragraph. Filing of the petition stays the duty of the
174 appointing insurer to cancel the appointment until the
175 department grants or denies the petition; and
176 (c) Any other information that the department reasonably
177 requires concerning the proposed appointee.
178 (3) By authorizing the effectuation of an appointment for
179 a licensee, the appointing insurer certifies to the department
180 that the insurer will be bound by the acts of the bail bond
181 agent acting within the scope of his or her appointment , and, in
182 the case of a temporary bail bond agent, the appointing insurer,
183 managing general agent, or bail bond agent, as the case may be,
184 must certify to the department that he or she will supervise the
185 temporary bail bond agent's activities.
186 (4) Each appointing insurer or, managing general agent, or
187 bail bond agent must advise the department in writing within 5
188 days after receiving notice or learning that an appointee has
189 been arrested for, pled guilty or nolo contendere to, or been
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Amendment No. 1
190 found guilty of, a felony or other offense punishable by
191 imprisonment of 1 year or more under the law of any
192 jurisdiction, whether judgment was entered or withheld by the
193 court.
194 Section 9. Subsection (2) of section 648.386, Florida
195 Statutes, is amended to read:
196 648.386 Qualifications for prelicensing and continuing
197 education schools and instructors.—
198 (2) SCHOOLS AND CURRICULUM FOR CONTINUING EDUCATION
199 SCHOOLS.—In order to be considered for approval and
200 certification as an approved limited surety agent and
201 professional bail bond agent continuing education school, such
202 entity must:
203 (a) Provide a minimum of three classroom-instruction
204 continuing education classes per calendar year.
205 (b) Submit a course curriculum to the department for
206 approval.
207 (c) Offer continuing education classes which are comprised
208 of a minimum of 2 hours of approved classroom-instruction
209 coursework and are taught by an approved supervising instructor
210 or guest lecturer approved by the entity or the supervising
211 instructor.
212 (d) For purposes of this section, the term "classroom
213 instruction" means a course designed to be presented to a group
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1141 (2022)
Amendment No. 1
214 of students by a live instructor using lecture, video, webcast,
215 virtual, or other audio-video presentation.
216 Section 10. Section 648.3875, Florida Statutes, is create d
217 to read:
218 648.3875 Primary bail bond agents; qualifications. —
219 (1) An application for designation as a primary bail bond
220 agent must be submitted on forms prescribed by the department.
221 The application must include the applicant's full name; and the
222 number and date of issuance of the applicant's license issued
223 pursuant to s. 648.27.
224 (2) To qualify as a primary bail bond agent, it must
225 affirmatively appear at the time of application and throughout
226 the period of licensure that the applicant has complied with s.
227 648.285 and has been licensed as a bail bond agent for the 24
228 months immediately preceding the appointment as a primary bail
229 bond agent.
230 Section 11. Section 648.39, Florida Statutes, is amended
231 to read:
232 648.39 Termination of appointment of managing general
233 agents and, bail bond agents, and temporary bail bond agents.—
234 (1) An insurer who terminates the appointment of a
235 managing general agent or, bail bond agent, or temporary bail
236 bond agent shall, within 10 days after such termination, file
237 written notice thereof with the department together with a
238 statement that it has given or mailed notice to the terminated
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Bill No. HB 1141 (2022)
Amendment No. 1
239 agent. Such notice filed with the department must state the
240 reasons, if any, for such termination. Information so furnished
241 the department is confidential and exempt from the provisions of
242 s. 119.07(1).
243 (2) Each insurer shall, within 5 days after terminating
244 the appointment of any managing general agent or, bail bond
245 agent, or temporary bail bond agent, give written notice thereof
246 to each clerk of the circuit court and sheriff with whom such
247 person is registered.
248 (3) An insurer that terminates the appointment of a
249 managing general agent or, bail bond agent, or temporary bail
250 bond agent may authorize such person to continue to attempt the
251 arrest and surrender of a defendant for whom a surety bond had
252 been written by the bail bond agent before prior to termination
253 and to seek discharge of forfeitures and judgments as provided
254 in chapter 903.
255 Section 12. Section 648.41, Florida Statutes, is repealed.
256 Section 13. Section 648.42, Florida Statutes, is amended
257 to read:
258 648.42 Registration of bail bond agents.—A bail bond agent
259 may not become a surety on an undertaking unless he or she has
260 registered in the office of the sheriff and with the clerk of
261 the circuit court in the county in which the bail bond agent
262 resides. The bail bond agent may register in a like manner in
263 any other county, and any bail bond agent shall file a certified
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Amendment No. 1
264 copy of his or her appointment by power of attorney from each
265 insurer which he or she represents as a bail bond agent with
266 each of such officers. Registration and filing of a certified
267 copy of renewed power of attorney shall be performed by April 1
268 of each odd-numbered year. The clerk of the circuit court and
269 the sheriff shall not permit the registration of a bail bond
270 agent unless such bail bond agent is currently licensed by the
271 department and appointed by an insurer the department. Nothing
272 in this section shall prevent the registration of a temporary
273 licensee at the jail for the purposes of enabling the licensee
274 to perform the duties under such license as set forth in this
275 chapter.
276 Section 14. Subsections (1) and (2) and paragraphs (c) and
277 (d) of subsection (8) of section 648.44, Florida Statutes, are
278 amended to read:
279 648.44 Prohibitions; penalty.—
280 (1) A bail bond agent or temporary bail bond agent may
281 not:
282 (a) Suggest or advise the employment of, or name for
283 employment, any particular attorney to represent his or her
284 principal.
285 (b) Directly or indirectly solicit business in or on the
286 property or grounds of a jail, prison, or other place where
287 prisoners are confined or in or on the property or grounds of
288 any court. The term "solicitation" includes the distribution of
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Amendment No. 1
289 business cards, print advertising, or other written or oral
290 information directed to prisoners or potential indemnitors,
291 unless a request is initiated by the prisoner or a potential
292 indemnitor. Permissible print advertising in the jail is
293 strictly limited to a listing in a telephone directory and the
294 posting of the bail bond agent's or agency's name, address, and
295 telephone number in a designated location within the jail.
296 (c) Initiate in-person or telephone solicitation after
297 9:00 p.m. or before 8:00 a.m., in the case of domestic violence
298 cases, at the residence of the detainee or the detainee's
299 family. Any solicitation not prohibited by this chapter must
300 comply with the telephone solicitation requirements in ss.
301 501.059(2) and (4), 501.613, and 501.616(6).
302 (d) Wear or display any identification other than the
303 department issued or approved license or approved department
304 identification, which includes a citation of the licensee's
305 arrest powers, in or on the property or grounds of a jail,
306 prison, or other place where prisoners are confined or in or on
307 the property or grounds of any court.
308 (e) Pay a fee or rebate or give or promise anything of
309 value to a jailer, police officer, peace officer, or committing
310 trial court judge or any other person who has power to arrest or
311 to hold in custody or to any public official or public employee
312 in order to secure a settlement, compromise, remission, or
313 reduction of the amount of any bail bond or estreatment thereof.
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Amendment No. 1
314 (f) Pay a fee or rebate or give anything of value to an
315 attorney in a bail bond matter, except in defense of any action
316 on a bond.
317 (g) Pay a fee or rebate or give or promise anything of
318 value to the principal or anyone in his or her behalf.
319 (h) Participate in the capacity of an attorney at a trial
320 or hearing of one on whose bond he or she is surety.
321 (i) Loiter in or about a jail, courthouse, or where
322 prisoners are confined.
323 (j) Accept anything of value from a principal for
324 providing a bail bond except the premium and transfer fee
325 authorized by the office, except that the bail bond agent may
326 accept collateral security or other indemnity from the principal
327 or another person in accordance with the provisions of s.
328 648.442, together with documentary stamp taxes, if applicable.
329 No fees, expenses, or charges of any kind shall be permitted to
330 be deducted from the collateral held or any return premium due,
331 except as authorized by this chapter or rule of the department
332 or commission. A bail bond agent may, upon written agreement
333 with another party, receive a fee or compensation for returning
334 to custody an individual who has fled the jurisdiction of the
335 court or caused the forfeiture of a bond.
336 (k) Write more than one power of attorney per charge on a
337 bond, except in the case of a cosurety, unless the power of
338 attorney prohibits a cosurety.
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Amendment No. 1
339 (l) Execute a bond in this state on his or her own behalf.
340 (m) Execute a bond in this state if a judgment has been
341 entered on a bond executed by the bail bond agent, which has
342 remained unpaid for 35 days, unless the full amount of the
343 judgment is deposited with the clerk in accordance with s.
344 903.27(5).
345 (n) Make a statement or representation to a court, unless
346 such statement or representation is under oath. Such statement
347 or representation may not be false, misleading, or deceptive.
348 (o) Attempt to collect, through threat or coercion,
349 amounts due for the payment of any indebtedness related to the
350 issuance of a bail bond in violation of s. 559.72.
351 (p) Conduct bail bond business with any person, other than
352 the defendant, on the grounds of the jail or courthouse for the
353 purpose of executing a bond.
354 (2) The following persons or classes shall not be bail
355 bond agents, temporary bail bond agents, or employees of a bail
356 bond agent or a bail bond business and shall not directly or
357 indirectly receive any benefits from the execution of any bail
358 bond:
359 (a) Jailers or persons employed in any jail.
360 (b) Police officers or employees of any police department
361 or law enforcement agency.
362 (c) Committing trial court judges, employees of a court,
363 or employees of the clerk of any court.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1141 (2022)
Amendment No. 1
364 (d) Sheriffs and deputy sheriffs or employees of any
365 sheriff's department.
366 (e) Attorneys.
367 (f) Persons having the power to arrest or persons who have
368 authority over or control of federal, state, county, or
369 municipal prisoners.
370 (8)
371 (c) Any law enforcement agency, state attorney's office,
372 court clerk, or insurer that is aware that a bail bond agent or
373 temporary bail bond agent has been convicted of or who has
374 pleaded guilty or no contest to a crime as described in
375 paragraph (a) shall notify the department of this fact.
376 (d) Upon the filing of an information or indictment
377 against a bail bond agent or temporary bail bond agent, the
378 state attorney or clerk of the circuit court shall immediatel y
379 furnish the department a certified copy of the information or
380 indictment.
381 Section 15. Subsection (1) of section 648.441, Florida
382 Statutes, is amended to read:
383 648.441 Furnishing supplies to unlicensed bail bond agent
384 prohibited; civil liability and penalty.—
385 (1) An insurer, managing general agent, or bail bond
386 agent, or temporary bail bond agent appointed under this chapter
387 may not furnish to any person any blank forms, applications,
388 stationery, business card, or other supplies to be used in
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1141 (2022)
Amendment No. 1
389 soliciting, negotiating, or effecting bail bonds until such
390 person has received from the department a license to act as a
391 bail bond agent and is appointed by the insurer. This section
392 does not prohibit an unlicensed employee, under the direct
393 supervision and control of a licensed and appointed bail bond
394 agent, from possessing or executing in the bail bond agency, any
395 forms, except for powers of attorney, bond forms, and collateral
396 receipts, while acting within the scope of his or her
397 employment.
398 Section 16. Section 648.50, Florida Statutes, is amended
399 to read:
400 648.50 Effect of suspension, revocation upon associated
401 licenses and licensees.—
402 (1) Upon the suspension, revocation, or refusal to renew
403 or continue any license or appointment or the eligibility to
404 hold a license or appointment of a bail bond agent or temporary
405 bail bond agent, the department shall at the same time likewise
406 suspend or revoke all other licenses or appointments and the
407 eligibility to hold any other such licenses or appointments
408 which may be held by the licensee under the Florida Insurance
409 Code.
410 (2) In case of the suspension or revocation of the license
411 or appointment, or the eligibility to hold a license or
412 appointment, of any bail bond agent, the license, appointment,
413 or eligibility of any and all bail bond agents who are members
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1141 (2022)
Amendment No. 1
414 of a bail bond agency, whether incorporated or unincorporated,
415 and any and all temporary bail bond agents employed by such bail
416 bond agency, who knowingly are parties to the act which formed
417 the ground for the suspension or revocation may likewise be
418 suspended or revoked.
419 (3) No person whose license as a bail bond agent or
420 temporary bail bond agent has been revoked or suspended shall be
421 employed by any bail bond agent, have any ownership interest in
422 any business involving bail bonds, or have any financial
423 interest of any type in any bail bond business during the period
424 of revocation or suspension.
425 Section 17. Present paragraphs (a) through (f) of
426 subsection (1) of section 784.07, Florida Statutes, are
427 redesignated as paragraphs (b) through (g), respectively, a new
428 paragraph (a) is added to that subsection, and subsection (2) of
429 that section is amended, to read:
430 784.07 Assault or battery of law enforcement officers,
431 firefighters, emergency medical care providers, public transit
432 employees or agents, or other specified officers;
433 reclassification of offenses; minimum sentences.—
434 (1) As used in this section, the term:
435 (a) "Bail bond agent" means an individual licensed under
436 chapter 648 in good standing, a professional bail bond agent as
437 defined in s. 648.25 in good standing, or an individual licensed
438 as a bail bond agent in another state in good standing.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1141 (2022)
Amendment No. 1
439 (2) Whenever any person is charged with knowingly
440 committing an assault or battery upon a law enforcement officer,
441 a firefighter, an emergency medical care provider, a railroad
442 special officer, a traffic accident investigation officer as
443 described in s. 316.640, a nonsworn law enforcement agency
444 employee who is certified as an agency inspector, a blood
445 alcohol analyst, or a breath test operator while such employee
446 is in uniform and engaged in processing, testing, evaluating,
447 analyzing, or transporting a person who is detained or under
448 arrest for DUI, a law enforcement explorer, a traffic infraction
449 enforcement officer as described in s. 316.640, a parking
450 enforcement specialist as defined in s. 316.640, a person
451 licensed as a security officer as defined in s. 493.6101 and
452 wearing a uniform that bears at least one patch or emblem that
453 is visible at all times that clearly identifies the employing
454 agency and that clearly identifies the person as a licensed
455 security officer, or a security officer employed by the board of
456 trustees of a community college, while the officer, firefighter,
457 emergency medical care provider, railroad special officer,
458 traffic accident investigation officer, traffic infraction
459 enforcement officer, inspector, analyst, operator, law
460 enforcement explorer, parking enforcement specialist, public
461 transit employee or agent, or security officer is engaged in the
462 lawful performance of his or her duties, the offense for which
463 the person is charged shall be reclassified as follows:
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1141 (2022)
Amendment No. 1
464 (a) In the case of assault, from a misdemeanor of the
465 second degree to a misdemeanor of the first degree.
466 (b) In the case of battery, from a misdemeanor of the
467 first degree to a felony of the third degree. Notwithstanding
468 any other provision of law, a person convicted of battery upon a
469 law enforcement officer committed in furtherance of a riot or an
470 aggravated riot prohibited under s. 870.01 shall be sentenced to
471 a minimum term of imprisonment of 6 months.
472 (c) In the case of aggravated assault, from a felony of
473 the third degree to a felony of the second degree.
474 Notwithstanding any other provision of law, any person con victed
475 of aggravated assault upon a law enforcement officer shall be
476 sentenced to a minimum term of imprisonment of 3 years.
477 (d) In the case of aggravated battery, from a felony of
478 the second degree to a felony of the first degree.
479 Notwithstanding any other provision of law, any person convicted
480 of aggravated battery of a law enforcement officer shall be
481 sentenced to a minimum term of imprisonment of 5 years.
482 Section 18. Subsection (3) of Section 648.26, Florida
483 Statutes, is amended to read:
484 648.26 Department of Financial Services; administration.—
485 (3) The papers, documents, reports, or any other
486 investigatory records of the department are confidential and
487 exempt from the provisions of s. 119.07(1) until such
488 investigation is completed or ceases to be active. For the
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1141 (2022)
Amendment No. 1
489 purpose of this section, an investigation is considered "active"
490 while the investigation is being conducted by the department
491 with a reasonable, good faith belief that it may lead to the
492 filing of administrative, civil, or criminal proceedi ngs. An
493 investigation does not cease to be active if the department is
494 proceeding with reasonable dispatch and there is good faith
495 belief that action may be initiated by the department or other
496 administrative or law enforcement agency. This subsection does
497 not prevent the department or office from disclosing the
498 complaint or such information as it deems necessary to conduct
499 the investigation, to update the complainant as to the status
500 and outcome of the complaint, or to share such information with
501 any law enforcement agency or other regulatory body.
502 Section 19. Subsection (3) of Section 648.46, Florida
503 Statutes, is amended to read:
504 648.46 Procedure for disciplinary action against
505 licensees.—
506 (3) The complaint and all information obtained pursuant to
507 the investigation of the department are confidential and exempt
508 from the provisions of s. 119.07(1) until such investigation is
509 completed or ceases to be active. For the purpose of this
510 section, an investigation is considered "active" while the
511 investigation is being conducted by the department with a
512 reasonable, good faith belief that it may lead to the filing of
513 administrative, civil, or criminal proceedings. An investigation
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1141 (2022)
Amendment No. 1
514 does not cease to be active if the department is proceeding with
515 reasonable dispatch and there is good faith belief that action
516 may be initiated by the department or other administrative or
517 law enforcement agency. This subsection does not prevent the
518 department or office from disclosing the complaint or such
519 information as it deems necessary to conduct the investigation,
520 to update the complainant as to the status and outcome of the
521 complaint, or to share such information with any law enforcement
522 agency or other regulatory body.
523
524
525 -----------------------------------------------------
526 T I T L E A M E N D M E N T
527 Remove line 16 and insert:
528 classroom instruction; defining the term "classroom
529 instruction"; creating s. 648.3875, F.S.;
530
531 Remove line 40 and insert:
532 date; amending s. 648.26, F.S.; administration of
533 investigations; amending s. 648.46, F.S.; procedure for
534 disciplinary action against licenses
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HB 1307
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1307 Citizens Property Insurance Corporation
SPONSOR(S): Gregory and others
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee Fortenberry Luczynski
2) State Administration & Technology
Appropriations Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
The bill makes several changes to the operations of, and requirements for, Citizens Property Insurance
Corporation (Citizens), the state-run property insurer:
Establishes that the Office of Insurance Regulation (OIR) must approve the method that Citizens uses
to value dwelling replacement cost.
Establishes Citizens must charge policyholders a surcharge to offset a projected deficit according to a
schedule based upon the number of Citizens’ policyholders.
Defines “demonstrated expertise in insurance” for the purpose of board appointments as at least ten
years of responsible experience:
o In property and casualty insurance as a full-time employee, an officer or owner of a licensed
insurance agency, or an insurer writing residential property insurance; or
o As an insurance regulator or an executive or officer of an insurance trade association.
Establishes that, at the time of appointment, Citizens’ executive director must have the experience,
character, and qualifications sufficient to qualify as a chief executive officer of an insurer in accordance
with the requirements for managers, officers, and directors of private insurers.
Establishes that when Citizens’ personal lines residential or commercial lines residential policyholders
receive offers of coverage at renewal from authorized insurers, the risks are not eligible for coverage
from Citizens unless the premiums from the authorized insurers are more than 20 percent greater than
the renewal premiums for comparable coverage from Citizens.
Establishes that for new applications for commercial lines residential risks, the risk is not eligible for
coverage by Citizens unless the premium for coverage from an authorized insurer is more than 20
percent greater than the premium for Citizens. SB 76 (2021) made the change from 15 percent to 20
percent for personal lines residential risks, but the change was not made for commercial lines
residential risks in that bill.
Eliminates Citizens’ policyholders’ ability to decline take-out offers from authorized insurers if the
premium provided in the take-out offer is not more than 20 percent greater than Citizens’ premium. The
bill also requires that Citizens’ notify policyholders of the fact that they have received such an offer and
that the offer renders their risks ineligible for Citizens’ coverage.
Establishes that surplus lines insurers may participate in Citizens’ take-out program subject to the
insurers meeting certain financial requirements and having a depopulation, take-out, or keep-out plan
(plan) approved by OIR.
The bill has no effect on state or local government revenues or expenditures. It may have an indeterminate
negative impact on the private sector.
The bill is effective on July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h1307.IBS
DATE: 1/31/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Citizens Property Insurance Corporation (Citizens)
Citizens is a state-created, not-for-profit, tax-exempt government entity that is an integral part of the
state, whose public purpose is to provide property insurance to those unable to find affordable
coverage in the private market.1 Citizens is overseen by a board of directors (board) and operated by
an executive director. Citizens writes both personal and commercial property policies, including the
following:
Standard personal lines policies that are comprehensive multiperil policies providing full
coverage of residential property equivalent to the coverage provided in the private insurance
market;
Basic personal lines policies that are similar to dwelling fire policies that provide coverage
meeting the requirements of the secondary mortgage market, but are more limited in coverage
than under a standard policy;
Commercial lines residential and nonresidential policies that are generally similar to the basic
perils of full coverage obtainable for commercial residential structures and commercial
nonresidential structures in the private market;
Personal lines and commercial lines residential property insurance policies that cover the peril
of wind only;
Commercial lines nonresidential property insurance policies that cover the peril of wind only.2
Dwelling Valuation
Background
Dwelling coverage, sometimes called “dwelling insurance,” is the part of a homeowners policy that pays
for the rebuilding or repair of the physical structure of the home if it is damaged by a covered peril.3
Coverage may be provided on a replacement cost or actual cash-value basis. Replacement cost
includes the cost of materials and labor necessary to rebuild or repair the home. Actual cash value is
calculated by subtracting depreciation from replacement cost.
Since January 1, 2017, with certain exceptions, a structure that has a dwelling replacement cost of
$700,000 or more, or a single condominium that has a combined dwelling and contents replacement
cost of $700,000 or more, is not eligible for Citizens’ coverage. 4 However, in counties where the Office
of Insurance Regulation (OIR) has determined there is not a reasonable degree of competition in the
availability of property insurance, the limit for the dwelling replacement cost of a structure, or the
dwelling and contents replacement cost of a single condominium eligible for coverage is $1,000,000.5
Insurance companies typically use information on a customer’s application, proprietary formulas, and
third-party data to calculate dwelling replacement costs, which differ from market value. 6 Current law
does not specify the method by which Citizens must calculate dwelling replacement cost and does not
involve OIR in the process of completing such calculations.
1 S. 627.351(6)(a)1., F.S.
2 S. 627.351(6)(c)1., F.S.
3 Allstate, What is Dwelling Insurance Coverage?, https://www.allstate.com/tr/home-insurance/dwelling-insurance.aspx
(last visited Jan. 29, 2022).
4 S. 627.351(6)(a)3.d., F.S.
5 Id.
6 Kin, What is a Replacement Cost Estimate?, https://www.kin.com/faq/replacement-cost-estimate (last visited Jan. 29,
2022).
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DATE: 1/31/2022
Effect of the Bill
The bill establishes that OIR must approve the method that Citizens uses to value dwelling replacement
cost. It also removes obsolete language regarding dwelling and contents coverage provided by
Citizens.
Policyholder Surcharge
Background
All of Citizens’ revenues, assets, liabilities, losses, and expenses are divided into three accounts as
follows:
A personal lines account for personal residential policies issued by Citizens which provides
comprehensive, multiperil coverage on risks that are not located in the areas covered by the
coastal account and for policies that do not provide coverage for the peril of wind on risks
located in the areas covered by the coastal account;
A commercial lines account for commercial residential and commercial nonresidential policies
issued by Citizens which provides coverage for basic property perils on risks that are not
located in areas covered by the coastal account and do not provide coverage for the peril of
wind on risk located in the areas covered by the coastal account; and
A coastal account for personal residential policies, and commercial residential and commercial
nonresidential property policies issued by Citizens which provides coverage for the peril of wind
on risks that are located in the coastal areas. 7
Upon a determination by the board that an account has a projected deficit, the board must levy a
surcharge against all Citizens’ policyholders.8 The surcharge must be levied as a uniform percentage of
the premium for the policy, up to 15 percent of the premium, and must be used to offset the deficit. 9 The
surcharge is payable upon cancellation or termination of the policy, upon renewal of the policy, or upon
issuance of new policy by Citizens within the first 12 months after the levy or the period of time
necessary to fully collect the surcharge.10 The surcharge is not considered premium and is not subject
to commissions, fees, or premium taxes.11 However, failure of the insured to pay the surcharge is
considered failure to pay premium.12
Effect of the Bill
The bill establishes Citizens must charge policyholders a surcharge to offset a projected deficit
according to the following schedule:
If the total number of Citizens’ policyholders is less than one million, a surcharge of 15 percent
of the premium;
If the total number of Citizens’ policyholders is at least one million but less than 1.5 million, a
surcharge of 20 percent of the premium; and
If the total number of Citizens’ policyholders is at least 1.5 million, a surcharge of 25 percent of
the premium.
Primary Residence
Background
7 S. 627.351(6)(b)2.a., F.S.
8 S. 627.351(6)(b)2.i., F.S.
9 S. 627.351(6)(b)2.i.(I), F.S.
10 S. 627.351(6)(b)2.i.(II), F.S.
11 S. 627.351(6)(b)2.i.(IV), F.S.
12 Id.
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DATE: 1/31/2022
Currently Florida statutes regarding Citizens do not define or otherwise mention a primary residence or
establish different rates or coverage based upon whether a property is an insured’s primary residence.
Effect of the Bill
The bill defines “primary residence” as a residential dwelling that an insured has listed as a homestead
either on an insurance application or has informed Citizens of by other means and is owned by a citizen
of, or lawful permanent resident of, the United States. However, the definition is not utilized in any
current provision of law or new provisions of the bill.
Qualifications of Citizens’ Board Members
Background
Citizens is overseen by its board, which consists of nine individuals who are residents of different
geographical areas of Florida.13 The Governor, Chief Financial Officer, President of the Senate, and
Speaker of the House, each appoint two members of the board.14 The Governor appoints one
additional member who serves solely to advocate on behalf of consumers. 15 At least one of the two
members appointed by each appointing officer must have demonstrated experience in insurance. 16
However, current law does not define the insurance experience that the board members must have in
order to qualify for their board positions.
Effect of the Bill
The bill defines “demonstrated expertise in insurance” as at least ten years of responsible experience:
In property and casualty insurance as a full-time employee, an officer or owner of a licensed
insurance agency, or an insurer writing residential property insurance; or
As an insurance regulator or an executive or officer of an insurance trade association.
Qualifications of Citizens’ Executive Director
Background
Citizens is run by an executive director that is engaged by the board and serves “at the pleasure of the
board.”17 The executive director is subject to confirmation by the Senate. 18 He or she is responsible for
employing other staff as Citizens requires, subject to review and agreement by the board.19 However,
current law does not specify the experience, character, or qualifications that an individual must have in
order to be qualified to serve as Citizens’ executive director.
Florida law provides guidance regarding the qualifications necessary for individuals to serve as officers
and directors of private insurers within the state.20 In general, OIR must not grant or continue to grant
authority to transact insurance to any insurer, which has management, officers, or directors that it finds
to be incompetent or untrustworthy, or “so lacking in insurance company managerial experience as to
make the proposed operation hazardous to the insurance-buying public.”21 Additionally, OIR must not
grant or continue authority to transact insurance to any insurer if any person in control of the insurer
“does not possess the financial standing and business experience for the successful operation of the
insurer.”22
13 S. 627.351(6)(c)4., F.S.
14 Id.
15 Id.
16 Id.
17 Id.
18 Id.
19 Id.
20 See s. 624.404(3), F.S.
21 S. 624.404(3)(a), F.S.
22 S. 624.404(3)(b), F.S.
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Effect of the Bill
The bill establishes that, at the time of appointment, Citizens’ executive director must have the
experience, character, and qualifications sufficient to qualify as a chief executive officer of an insurer in
accordance with s. 624.404(3), F.S.
Competitiveness of Citizens’ Rates and Eligibility for Coverage
Current law requires Citizens to provide a procedure for determining the eligibility of a potential risk for
coverage from Citizens and provides specific eligibility requirements based on premium amounts, value
of the property insured, and the location of the property. Risks not meeting the statutory eligibility
requirements cannot be insured by Citizens. Citizens also has additional eligibility requirements set out
in their underwriting rules. These rules are approved by OIR and set out in Citizens’ underwriting
manuals.23
Citizens’ rate cap, also known as the “glide path,” is not closing the gap between Citizens rates and
private market rates. Instead, because of the rate cap and the increasing rates of private property
insurance, the gap is growing and making Citizens more like a competitor to private insurers than an
insurer of last resort. Because Citizens’ rates are often well below those of private carriers, Citizens
may be more competitive than otherwise intended. Due to Citizens’ structure, its rates do not contain
certain elements that the rates of private insurers contain. Citizens does not pay taxes like private
insurers and does not need to purchase as much reinsurance as private insurers because of Citizens’
higher levels of capital and surplus.
Eligibility for Personal and Commercial Lines Residential Coverage at Renewal
Background
Both personal lines residential and commercial lines residential policyholders cannot renew Citizens’
insurance policies if an authorized insurer offers to insure their property at a premium equal to or less
than Citizens’ renewal premium.24 Additionally, the insurance from the authorized insurer must be
comparable to the insurance from Citizens in order for the renewal premium eligibility requirement to
apply.25
Effect of the Bill
The bill establishes that when Citizens’ personal lines residential or commercial lines residential
policyholders receive offers of coverage at renewal from authorized insurers, the risks are not eligible
for coverage from Citizens unless the premiums from the authorized insurers are more than 20 percent
greater than the renewal premiums for comparable coverage from Citizens.
Eligibility for New Commercial Lines Residential Coverage
Background
New applicants are eligible for commercial lines residential coverage from Citizens if no authorized
insurer will write them a policy for a premium that is less than 15 percent greater than what Citizens
would offer them for comparable coverage.26 However, new applicants are eligible for personal lines
23 See Citizens Property Insurance Corporation, Revised Underwriting Manuals, https://www.citizensfla.com/-/20160329-
revised-underwriting-manuals (last visited Jan. 30, 2022).
24 S. 627.351(6)(c)5., F.S.
25 Id.
26 S. 627.351(6)(c)5., F.S.
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DATE: 1/31/2022
residential coverage if no authorized insurer will write them a policy for a premium that is less than 20
percent greater than what Citizens would offer them for comparable coverage. 27
Effect of the Bill
The bill establishes that for new applications for commercial lines residential risks, the risk is not eligible
for coverage by Citizens unless the premium for coverage from an authorized insurer is more than 20
percent greater than the premium for Citizens.28
Citizens’ Take-out Program/Depopulation
Eligibility After a Take-out Offer
Background
Florida law requires that Citizens create programs to help return its policyholders to the private property
insurance market and to reduce the risk of additional assessments for all Floridians in the even that
Citizens is unable to meet its obligations.29 In 2016, the Legislature passed requirements that by
January 1, 2017, Citizens amend its operations relating to take-out agreements, whereby private
insurers remove policies from Citizens.30 As part of these requirements, a policy may not be taken out
of Citizens unless Citizens:
Publishes a periodic schedule of cycles during which an insurer may identify, and notify Citizens
of, policies the insurer requests to take out;31
Maintains and makes available to the agent of record a consolidated list of all insurers
requesting to take out a policy; the list must include a description of the coverage offered and
the estimated premium for each take-out request;
Provides written notice to the policyholder and the agent of record regarding all insurers
requesting to take-out the policy and regarding the policyholder’s option to accept a take-out
offer or to reject all take-out offers and to remain with Citizens. The notice must be in a format
prescribed by Citizens and include, for each take-out offer:
o The amount of the estimated premium;
o A description of coverage; and
o A comparison of the estimated premium and coverage offered by the insurer to the
estimated premium and coverage provided by Citizens.32
Effect of the Bill
The bill eliminates Citizens’ policyholders’ ability to decline take-out offers from authorized insurers if
the premium provided in the take-out offer is not more than 20 percent greater than Citizens’ premium.
The bill also requires that Citizens’ notify policyholders of the fact that they have received such an offer
and that the offer renders their risks ineligible for Citizens’ coverage.
Surplus Lines Insurer Participation in Citizens’ Take-out Program
Background
With certain exceptions, Florida law requires any person transacting insurance to have a certificate of
authority issued by the OIR.33 Authorized insurers in Florida are subject to the provisions of the Florida
27 Id.
28 SB 76 (2021) made the change from 15 percent to 20 percent for personal lines residential risks, but the change was
not made for commercial lines residential risks in that bill.
29 S. 627.351(6)(q)3.a., F.S.
30 Ch. 2016-229, Laws of Fla.
31 These requests from insurers must include a description of the coverage offered and an estimated premium for it and
must be submitted to Citizens in a form prescribed by Citizens.
32 S. 627.351(6)(ii), F.S.
33 S. 624.401, F.S. In the Florida Insurance Code (FIC), a person also includes a business entity such as an insurer.
STORAGE NAME: h1307.IBS PAGE: 6
DATE: 1/31/2022
Insurance Code34 and regulation primarily by OIR.35 OIR’s regulatory authority over authorized insurers
includes solvency and financial strength, insurance policy forms and rates, and market conduct of
insurers. States also realized that there are risks for which insurance in the admitted market are not
available because insurers are unable or unwilling to write policies for them. Therefore, they allow
insurers that are not otherwise authorized to sell policies to sell surplus lines insurance if they meet
certain requirements.
Surplus lines insurers are still considered “unauthorized” insurers 36, and may write only surplus lines
policies if they are made “eligible” by OIR. Except as specifically stated, surplus lines insurers are not
subject to regulation by OIR under ch. 627, F.S., which includes statutory provisions regarding rating
standards and insurance policy forms.37 Currently, surplus lines insurers are not permitted to participate
in Citizens’ take-out program.
Effect of the Bill
The bill establishes that surplus lines insurers may participate in Citizens’ take-out program subject to
the insurers meeting certain financial requirements and having a depopulation, take-out, or keep-out
plan (plan) approved by OIR. In considering a surplus lines insurer’s request for approval of its plan,
OIR must determine whether the surplus lines insurer:
Maintains a surplus of $50,000,000 on a company or pooled basis;
Has a superior, excellent, exceptional, or equivalent financial strength rating by a rating agency
acceptable to OIR;
Maintains reserves, surplus, reinsurance, and reinsurance equivalents sufficient to cover the
insurer’s 100-year probable maximum hurricane loss at least twice in a single hurricane season
and submits such reinsurance to OIR to review for purposes of the plan;
Provides prominent notice to the policyholder before the assumption of the policy that surplus
lines policies do not receive coverage from the Florida Insurance Guaranty Association38 and
provides an outline of any substantial differences in coverage between the existing policy and
the policy it is offering to the policyholder;
Provides policy coverage similar to the coverage that Citizens provides.
The bill establishes that to obtain approval of a plan, the surplus lines insurer must file the following
information with OIR:
Information OIR requests to demonstrate that the insurer complies with the statutory requirements
regarding competence and trustworthiness of its officers;39
A service-of-process consent and agreement form executed by the insurer;
Proof that the insurer has been an eligible or authorized insurer for at least three years;
An authenticated copy of the insurer’s current audited financial statement;
A completed certified copy of the latest official financial statement required by the insurer’s
domiciliary state, if different from the audited financial statement;
A copy of the insurer’s United States trust account agreement, if applicable.
The bill also establishes that, within ten days after the date of assumption of policies that it has taken-out
from Citizens, the surplus lines insurer must remit to the Bureau of Collateral Management (BCM) within
the Department of Financial Services (DFS) a special deposit equal to the unearned premium, minus
unearned commissions, on the assumed policies. According to the bill, the surplus lines insurer is also
34 Section 624.404, F.S., provides that an insurer must be in compliance with the FIC to qualify for and hold authority to
transact insurance in the state. The FIC is chapters 624-632, 634, 635, 636, 641, 642, 648, and 651, F.S. S. 624.01, F.S.
35 In general, OIR has regulatory authority over insurers and the Department of Financial Services (DFS) has regulatory
authority over insurance agents and agencies.
36 S. 624.09(2), F.S.
37 S. 626.913(4), F.S.
38 The Florida Insurance Guaranty Association provides a “mechanism for the payment of covered claims under certain
insurance policies to avoid excessive delay in payment and to avoid financial loss to claimants or policyholders because
of the insolvency of an insurer.” S. 631.51, F.S.
39 See s. 624.404(3), F.S. and s. 624.34, F.S.
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required to provide the BCM with an accounting of the policies assumed within ten days of the assumption,
a quarterly filing with the BCM regarding the unearned premium on the policies in force for those assumed
from Citizens, and additional deposits if the deposit previously made to the BCM is insufficient to cover the
unearned premium on the assumed policies.
The bill provides that, if an order of liquidation is entered in any state against the surplus lines insurer, DFS
may use the special deposit for payment of unearned premium or policy claims, return all or part of the
deposit to the receiver in the surplus lines insurer’s state of domicile, or use the funds in accordance with
any action authorized under ch. 631, part I, F.S.,40 or in compliance with an order from a court having
jurisdiction over the insolvency.
According to the bill, before a surplus lines insurer assumes a policy from Citizens, surplus lines brokers
representing the surplus lines insurer shall obtain written or e-mail confirmation from each producing agent
stating that the agent is willing to participate in the take-out program with that surplus lines insurer. The bill
further establishes that if both a surplus lines insurer and an authorized insurer select a policyholder for
removal from Citizens, Citizens must give priority to the offer from the authorized insurer.
The bill provides that the following risks are not eligible for Citizens coverage if they are offered comparable
coverage from qualified surplus lines insurer at a premium no greater than 15 percent above the premium
charged by Citizens:
A risk that has a dwelling replacement cost of $700,000 or more.
A single condominium unit that has a dwelling and content replacement cost of $700,000 or more.
However, the bill also establishes that a risk that has a dwelling replacement cost below $700,000, or a
single condominium unit that has a combined dwelling and contents replacement cost below $700,000
remains eligible for Citizens coverage if a qualified surplus lines insurer offers it coverage.
B. SECTION DIRECTORY:
Section 1. Amends s. 627.022, F.S., relating to scope of this part.
Section 2. Amends s. 627.351, F.S., relating to insurance risk apportionment plans.
Section 3. Amends s. 627.3517, F.S., relating to consumer choice.
Section 4. Amends s. 627.3518, F.S., relating to Citizens Property Insurance Corporation policyholder
eligibility clearinghouse program.
Section 5. Provides an effective date of July 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
40 Ch. 631, part 1, F.S., establishes the requirements for rehabilitation and liquidation of insolvent insurers in Florida.
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2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
To the extent that less policyholders are eligible for Citizens’ coverage, they may pay more in insurance
premiums on the private market. Therefore, the bill may have an indeterminate negative impact on the
private sector.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill neither authorizes nor requires administrative rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
Lines 564–567 of the bill define the term “primary residence.” However, that term is not used
elsewhere in the bill and the definition may be unnecessary. Additionally, as written, the definition is
unclear as to whether the primary residence must be owned by the insured or may be owned by
another citizen of the United States or lawful permanent resident and declared a homestead by
someone other than the owner. If the bill is amended to use the term elsewhere, it is recommended to
amend the definition for clarity about who may own the property that is declared to be a homestead.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1307 2022
1 A bill to be entitled
2 An act relating to Citizens Property Insurance
3 Corporation; amending s. 627.021, F.S.; revising
4 applicability; amending s. 627.351, F.S.; deleting
5 obsolete language; requiring the Office of Financial
6 Regulation to approve the method used by Citizens
7 Property Insurance Corporation for valuing the
8 dwelling replacement costs; revising the method for
9 determining the amounts of potential surcharges to be
10 levied against policyholders under certain
11 circumstances; defining the term "primary residence";
12 specifying requirements for certain members the
13 corporation's board of governors at the time of
14 appointment and reappointment; defining the term
15 "demonstrated expertise in insurance" to specify the
16 qualifications of some appointees for the board
17 membership; revising procedures for determining
18 eligibility of a risk for coverage by the corporation;
19 making technical changes; specifying the
20 qualifications for an appointee as the executive
21 director of the corporation; providing that eligible
22 surplus lines insurers may participate, in the same
23 manner and on the same terms as authorized insurers,
24 in depopulation, take-out, or keep-out programs
25 relating to policies removed from the corporation;
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26 providing certain exceptions, conditions, and
27 requirements relating to such participation by surplus
28 lines insurers in the corporation's depopulation,
29 take-out, or keep-out programs; providing thresholds
30 for eligibility for coverage by the corporation for
31 risks that are offered coverage from qualified surplus
32 lines insurers; revising the circumstances under which
33 information from underwriting files and confidential
34 claims files may be released by the corporation;
35 revising the list of entities that such files may be
36 released to; specifying that only the corporation's
37 transfer of a policy file to an insurer, rather than
38 the transfer of any file, changes the file's public
39 record status; making technical changes; revising the
40 notice that must be provided by the corporation when
41 insurers request to take out a policy; amending s.
42 627.3517, F.S.; making technical changes; amending s.
43 627.3518, F.S.; deleting obsolete provisions relating
44 to the purpose of the corporation's clearinghouse
45 program and reporting requirements; revising
46 procedures for determining eligibility of a risk for
47 coverage with the corporation; providing an effective
48 date.
49
50 Be It Enacted by the Legislature of the State of Florida:
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51
52 Section 1. Subsection (2) of section 627.021, Florida
53 Statutes, is amended to read:
54 627.021 Scope of this part.—
55 (2) This part does not apply to:
56 (a) Reinsurance, except joint reinsurance as provided in
57 s. 627.311.
58 (b) Insurance against loss of or damage to aircraft, their
59 hulls, accessories, or equipment, or against liability, other
60 than workers' compensation and employer's liability, ari sing out
61 of the ownership, maintenance, or use of aircraft.
62 (c) Insurance of vessels or craft, their cargoes, marine
63 builders' risks, marine protection and indemnity, or other risks
64 commonly insured under marine insurance policies.
65 (d) Commercial inland marine insurance.
66 (e) Except as may be specifically stated to apply, surplus
67 lines insurance placed under the provisions of ss. 626.913-
68 626.937.
69 Section 2. Paragraphs (a), (b), (c), (d), (n), (q), (x),
70 and (ii) of subsection (6) of section 627.351, Florida Statutes,
71 are amended to read:
72 627.351 Insurance risk apportionment plans.—
73 (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
74 (a) The public purpose of this subsection is to ensure
75 that there is an orderly market for property insurance for
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76 residents and businesses of this state.
77 1. The Legislature finds that private insurers are
78 unwilling or unable to provide affordable property insurance
79 coverage in this state to the extent sought and needed. The
80 absence of affordable property insurance threatens the public
81 health, safety, and welfare and likewise threatens the economic
82 health of the state. The state therefore has a compelling public
83 interest and a public purpose to assist in assuring that
84 property in the state is insured and that it is insured at
85 affordable rates so as to facilitate the remediation,
86 reconstruction, and replacement of damaged or destroyed property
87 in order to reduce or avoid the negative effects otherwise
88 resulting to the public health, safety, and welfare, to the
89 economy of the state, and to the revenues of the state and local
90 governments which are needed to provide for the public welfare.
91 It is necessary, therefore, to provide affordable property
92 insurance to applicants who are in good faith entitled to
93 procure insurance through the voluntary market but are unabl e to
94 do so. The Legislature intends, therefore, that affordable
95 property insurance be provided and that it continue to be
96 provided, as long as necessary, through Citizens Property
97 Insurance Corporation, a government entity that is an integral
98 part of the state, and that is not a private insurance company.
99 To that end, the corporation shall strive to increase the
100 availability of affordable property insurance in this state,
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101 while achieving efficiencies and economies, and while providing
102 service to policyholders, applicants, and agents which is no
103 less than the quality generally provided in the voluntary
104 market, for the achievement of the foregoing public purposes.
105 Because it is essential for this government entity to have the
106 maximum financial resources to pay claims following a
107 catastrophic hurricane, it is the intent of the Legislature that
108 the corporation continue to be an integral part of the state and
109 that the income of the corporation be exempt from federal income
110 taxation and that interest on the debt obligations issued by the
111 corporation be exempt from federal income taxation.
112 2. The Residential Property and Casualty Joint
113 Underwriting Association originally created by this statute
114 shall be known as the Citizens Property Insurance Corporation.
115 The corporation shall provide insurance for residential and
116 commercial property, for applicants who are entitled, but, in
117 good faith, are unable to procure insurance through the
118 voluntary market. The corporation shall operate pursuant to a
119 plan of operation approved by order of the Financial Services
120 Commission. The plan is subject to continuous review by the
121 commission. The commission may, by order, withdraw approval of
122 all or part of a plan if the commission determines that
123 conditions have changed since approval was granted and that the
124 purposes of the plan require changes in the plan. For the
125 purposes of this subsection, residential coverage includes both
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126 personal lines residential coverage, which consists of the type
127 of coverage provided by homeowner, mobile home owner, dwelling,
128 tenant, condominium unit owner, and similar policies; and
129 commercial lines residential coverage, which consists of the
130 type of coverage provided by condominium association, apartment
131 building, and similar policies.
132 3. With respect to coverage for personal lines residential
133 structures,:
134 a. Effective January 1, 2014, a structure that has a
135 dwelling replacement cost of $1 million or more, or a single
136 condominium unit that has a combined dwelling and contents
137 replacement cost of $1 million or more, is not eligible for
138 coverage by the corporation. Such dwellings insured by the
139 corporation on December 31, 2013, may continue to be covered by
140 the corporation until the end of the policy term. The office
141 shall approve the method used by the corporation for valuing the
142 dwelling replacement cost for the purposes of this subparagraph.
143 If a policyholder is insured by the corporation before being
144 determined to be ineligible pursuant to this subparagraph and
145 such policyholder files a lawsuit challenging the determination,
146 the policyholder may remain insured by the corporation until the
147 conclusion of the litigation.
148 b. Effective January 1, 2015, a structure that has a
149 dwelling replacement cost of $900,000 or more, or a single
150 condominium unit that has a combined dwelling and contents
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151 replacement cost of $900,000 or more, is not eligible for
152 coverage by the corporation. Such dwellings insured by the
153 corporation on December 31, 2014, may continue to be covered by
154 the corporation only until the end of the policy term.
155 c. Effective January 1, 2016, a structure that has a
156 dwelling replacement cost of $800,000 or more, or a single
157 condominium unit that has a combined dwelling and contents
158 replacement cost of $800,000 or more, is not eligible for
159 coverage by the corporation. Such dwellings insured by the
160 corporation on December 31, 2015, may continue to be covered by
161 the corporation until the end of the policy term.
162 d. effective January 1, 2017, a structure that has a
163 dwelling replacement cost of $700,000 or more, or a single
164 condominium unit that has a combined dwelling and contents
165 replacement cost of $700,000 or more, is not eligible for
166 coverage by the corporation. The office shall approve the method
167 used by the corporation for valuing the dwelling replac ement
168 cost Such dwellings insured by the corporation on December 31,
169 2016, may continue to be covered by the corporation until the
170 end of the policy term.
171
172 The requirements of this subparagraph sub-subparagraphs b.-d. do
173 not apply in counties where the office determines there is not a
174 reasonable degree of competition. In such counties a personal
175 lines residential structure that has a dwelling replacement cost
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176 of less than $1 million, or a single condominium unit that has a
177 combined dwelling and contents replacement cost of less than $1
178 million, is eligible for coverage by the corporation.
179 4. It is the intent of the Legislature that policyholders,
180 applicants, and agents of the corporation receive service and
181 treatment of the highest possible level but never less than that
182 generally provided in the voluntary market. It is also intended
183 that the corporation be held to service standards no less than
184 those applied to insurers in the voluntary market by the office
185 with respect to responsiveness, timeliness, customer courtesy,
186 and overall dealings with policyholders, applicants, or agents
187 of the corporation.
188 5.a. Effective January 1, 2009, a personal lines
189 residential structure that is located in the "wind-borne debris
190 region," as defined in s. 1609.2, International Building Code
191 (2006), and that has an insured value on the structure of
192 $750,000 or more is not eligible for coverage by the corporation
193 unless the structure has opening protections as required under
194 the Florida Building Code for a newly constructed residential
195 structure in that area. A residential structure is deemed to
196 comply with this sub-subparagraph if it has shutters or opening
197 protections on all openings and if such opening protections
198 complied with the Florida Building Code at the time they were
199 installed.
200 b. Any major structure, as defined in s. 161.54(6)(a),
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201 that is newly constructed, or rebuilt, repaired, restored, or
202 remodeled to increase the total square footage of finished area
203 by more than 25 percent, pursuant to a permit applied for aft er
204 July 1, 2015, is not eligible for coverage by the corporation if
205 the structure is seaward of the coastal construction control
206 line established pursuant to s. 161.053 or is within the Coastal
207 Barrier Resources System as designated by 16 U.S.C. ss. 3501 -
208 3510.
209 6. With respect to wind-only coverage for commercial lines
210 residential condominiums, effective July 1, 2014, a condominium
211 shall be deemed ineligible for coverage if 50 percent or more of
212 the units are rented more than eight times in a calendar year
213 for a rental agreement period of less than 30 days.
214 (b)1. All insurers authorized to write one or more subject
215 lines of business in this state are subject to assessment by the
216 corporation and, for the purposes of this subsection, are
217 referred to collectively as "assessable insurers." Insurers
218 writing one or more subject lines of business in this state
219 pursuant to part VIII of chapter 626 are not assessable
220 insurers; however, insureds who procure one or more subject
221 lines of business in this state pursuant to part VIII of chapter
222 626 are subject to assessment by the corporation and are
223 referred to collectively as "assessable insureds." An insurer's
224 assessment liability begins on the first day of the calendar
225 year following the year in which the insurer was issued a
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226 certificate of authority to transact insurance for subject lines
227 of business in this state and terminates 1 year after the end of
228 the first calendar year during which the insurer no longer holds
229 a certificate of authority to transact insurance fo r subject
230 lines of business in this state.
231 2.a. All revenues, assets, liabilities, losses, and
232 expenses of the corporation shall be divided into three separate
233 accounts as follows:
234 (I) A personal lines account for personal residential
235 policies issued by the corporation which provides comprehensive,
236 multiperil coverage on risks that are not located in areas
237 eligible for coverage by the Florida Windstorm Underwriting
238 Association as those areas were defined on January 1, 2002, and
239 for policies that do not provide coverage for the peril of wind
240 on risks that are located in such areas;
241 (II) A commercial lines account for commercial residential
242 and commercial nonresidential policies issued by the corporation
243 which provides coverage for basic property perils on risks that
244 are not located in areas eligible for coverage by the Florida
245 Windstorm Underwriting Association as those areas were defined
246 on January 1, 2002, and for policies that do not provide
247 coverage for the peril of wind on risks that are located in such
248 areas; and
249 (III) A coastal account for personal residential policies
250 and commercial residential and commercial nonresidential
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251 property policies issued by the corporation which provides
252 coverage for the peril of wind on risks that are located in
253 areas eligible for coverage by the Florida Windstorm
254 Underwriting Association as those areas were defined on January
255 1, 2002. The corporation may offer policies that provide
256 multiperil coverage and shall offer policies that provide
257 coverage only for the peril of wind for risks located in areas
258 eligible for coverage in the coastal account. Effective July 1,
259 2014, the corporation shall cease offering new commercial
260 residential policies providing multiperil coverage and shall
261 instead continue to offer commercial residential wind-only
262 policies, and may offer commercial residential policies
263 excluding wind. The corporation may, however, continue to renew
264 a commercial residential multiperil policy on a building that is
265 insured by the corporation on June 30, 2014, under a multiperil
266 policy. In issuing multiperil coverage, the corporation may use
267 its approved policy forms and rates for the personal lines
268 account. An applicant or insured who is eligible to purchase a
269 multiperil policy from the corporation may purchase a mu ltiperil
270 policy from an authorized insurer without prejudice to the
271 applicant's or insured's eligibility to prospectively purchase a
272 policy that provides coverage only for the peril of wind from
273 the corporation. An applicant or insured who is eligible for a
274 corporation policy that provides coverage only for the peril of
275 wind may elect to purchase or retain such policy and also
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276 purchase or retain coverage excluding wind from an authorized
277 insurer without prejudice to the applicant's or insured's
278 eligibility to prospectively purchase a policy that provides
279 multiperil coverage from the corporation. It is the goal of the
280 Legislature that there be an overall average savings of 10
281 percent or more for a policyholder who currently has a wind-only
282 policy with the corporation, and an ex-wind policy with a
283 voluntary insurer or the corporation, and who obtains a
284 multiperil policy from the corporation. It is the intent of the
285 Legislature that the offer of multiperil coverage in the coastal
286 account be made and implemented in a manner that does not
287 adversely affect the tax-exempt status of the corporation or
288 creditworthiness of or security for currently outstanding
289 financing obligations or credit facilities of the coastal
290 account, the personal lines account, or the commercia l lines
291 account. The coastal account must also include quota share
292 primary insurance under subparagraph (c)2. The area eligible for
293 coverage under the coastal account also includes the area within
294 Port Canaveral, which is bordered on the south by the City of
295 Cape Canaveral, bordered on the west by the Banana River, and
296 bordered on the north by Federal Government property.
297 b. The three separate accounts must be maintained as long
298 as financing obligations entered into by the Florida Windstorm
299 Underwriting Association or Residential Property and Casualty
300 Joint Underwriting Association are outstanding, in accordance
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301 with the terms of the corresponding financing documents. If the
302 financing obligations are no longer outstanding, the corporation
303 may use a single account for all revenues, assets, liabilities,
304 losses, and expenses of the corporation. Consistent with this
305 subparagraph and prudent investment policies that minimize the
306 cost of carrying debt, the board shall exercise its best efforts
307 to retire existing debt or obtain the approval of necessary
308 parties to amend the terms of existing debt, so as to structure
309 the most efficient plan for consolidating the three separate
310 accounts into a single account.
311 c. Creditors of the Residential Property and Casualty
312 Joint Underwriting Association and the accounts specified in
313 sub-sub-subparagraphs a.(I) and (II) may have a claim against,
314 and recourse to, those accounts and no claim against, or
315 recourse to, the account referred to in sub-sub-subparagraph
316 a.(III). Creditors of the Florida Windstorm Underwriting
317 Association have a claim against, and recourse to, the account
318 referred to in sub-sub-subparagraph a.(III) and no claim
319 against, or recourse to, the accounts referred to in sub -sub-
320 subparagraphs a.(I) and (II).
321 d. Revenues, assets, liabilities, losses, and expenses not
322 attributable to particular accounts shall be prorated among the
323 accounts.
324 e. The Legislature finds that the revenues of the
325 corporation are revenues that are necessary to meet the
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326 requirements set forth in documents authorizing the issuance of
327 bonds under this subsection.
328 f. The income of the corporation may not inure to the
329 benefit of any private person.
330 3. With respect to a deficit in an account:
331 a. After accounting for the Citizens policyholder
332 surcharge imposed under sub-subparagraph i., if the remaining
333 projected deficit incurred in the coastal account in a
334 particular calendar year:
335 (I) Is not greater than 2 percent of the aggregate
336 statewide direct written premium for the subject lines of
337 business for the prior calendar year, the entire deficit shall
338 be recovered through regular assessments of assessable insurers
339 under paragraph (q) and assessable insureds.
340 (II) Exceeds 2 percent of the aggregate statewide direct
341 written premium for the subject lines of business for the prior
342 calendar year, the corporation shall levy regular assessments on
343 assessable insurers under paragraph (q) and on assessable
344 insureds in an amount equal to the greater of 2 percent of the
345 projected deficit or 2 percent of the aggregate statewide direct
346 written premium for the subject lines of business for the prior
347 calendar year. Any remaining projected deficit shall be
348 recovered through emergency assessments under sub-subparagraph
349 d.
350 b. Each assessable insurer's share of the amount being
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351 assessed under sub-subparagraph a. must be in the proportion
352 that the assessable insurer's direct written premium for the
353 subject lines of business for the year preceding the assessment
354 bears to the aggregate statewide direct written premium for the
355 subject lines of business for that year. The assessment
356 percentage applicable to each assessable insured is the ratio of
357 the amount being assessed under sub-subparagraph a. to the
358 aggregate statewide direct written premium for the subject lines
359 of business for the prior year. Assessments levied by the
360 corporation on assessable insurers under sub-subparagraph a.
361 must be paid as required by the corporation's plan of operation
362 and paragraph (q). Assessments levied by the corporation on
363 assessable insureds under sub-subparagraph a. shall be collected
364 by the surplus lines agent at the time the surplus lines agent
365 collects the surplus lines tax required by s. 626.932, and paid
366 to the Florida Surplus Lines Service Office at the time the
367 surplus lines agent pays the surplus lines tax to that office.
368 Upon receipt of regular assessments from surplus lines agents,
369 the Florida Surplus Lines Service Office shall transfer the
370 assessments directly to the corporation as determined by the
371 corporation.
372 c. After accounting for the Citizens policyholder
373 surcharge imposed under sub-subparagraph i., the remaining
374 projected deficits in the personal lines account and in the
375 commercial lines account in a particular calendar year shall be
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376 recovered through emergency assessments under sub-subparagraph
377 d.
378 d. Upon a determination by the board of governors that a
379 projected deficit in an account exceeds the amount that is
380 expected to be recovered through regular assessments under sub-
381 subparagraph a., plus the amount that is expected to be
382 recovered through surcharges under sub-subparagraph i., the
383 board, after verification by the office, shall levy emergency
384 assessments for as many years as necessary to cover the
385 deficits, to be collected by assessable insurers and the
386 corporation and collected from assessable insureds upon issuance
387 or renewal of policies for subject lines of business, excluding
388 National Flood Insurance policies. The amount collected in a
389 particular year must be a uniform percentage of that year's
390 direct written premium for subject lines of business and all
391 accounts of the corporation, excluding National Flood Insurance
392 Program policy premiums, as annually determined by the board and
393 verified by the office. The office shall verify the arithmetic
394 calculations involved in the board's determination within 30
395 days after receipt of the information on which the determination
396 was based. The office shall notify assessable insurers and the
397 Florida Surplus Lines Service Office of the date on which
398 assessable insurers shall begin to collect and assessable
399 insureds shall begin to pay such assessment. The date must be at
400 least 90 days after the date the corporation levies emergency
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401 assessments pursuant to this sub-subparagraph. Notwithstanding
402 any other provision of law, the corporation and each assessable
403 insurer that writes subject lines of business shall collect
404 emergency assessments from its policyholders without such
405 obligation being affected by any credit, limitation, exemption,
406 or deferment. Emergency assessments levied by the corporation on
407 assessable insureds shall be collected by the surplus lines
408 agent at the time the surplus lines agent collects the surplus
409 lines tax required by s. 626.932 and paid to the Florida Surplus
410 Lines Service Office at the time the surplus lines agent pays
411 the surplus lines tax to that office. The emergency assessments
412 collected shall be transferred directly to the corporation on a
413 periodic basis as determined by the corporation and held by the
414 corporation solely in the applicable account. The aggregate
415 amount of emergency assessments levied for an account in any
416 calendar year may be less than but may not exceed the greater of
417 10 percent of the amount needed to cover the deficit, plus
418 interest, fees, commissions, required reserves, and other costs
419 associated with financing the original deficit, or 10 percent of
420 the aggregate statewide direct written premium for subject lines
421 of business and all accounts of the corporation for the prior
422 year, plus interest, fees, commissions, required reserves, and
423 other costs associated with financing the deficit.
424 e. The corporation may pledge the proceeds of assessments,
425 projected recoveries from the Florida Hurricane Catastrophe
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426 Fund, other insurance and reinsurance recoverables, policyholder
427 surcharges and other surcharges, and other funds available to
428 the corporation as the source of revenue for and to secure bonds
429 issued under paragraph (q), bonds or other indebtedness issued
430 under subparagraph (c)3., or lines of credit or other financing
431 mechanisms issued or created under this subsection, or to retire
432 any other debt incurred as a result of deficits or events giving
433 rise to deficits, or in any other way that the board determines
434 will efficiently recover such deficits. The purpose of the lines
435 of credit or other financing mechanisms is to provide additional
436 resources to assist the corporation in covering claims and
437 expenses attributable to a catastrophe. As used in this
438 subsection, the term "assessments" includes regular assessments
439 under sub-subparagraph a. or subparagraph (q)1. and emergenc y
440 assessments under sub-subparagraph d. Emergency assessments
441 collected under sub-subparagraph d. are not part of an insurer's
442 rates, are not premium, and are not subject to premium tax,
443 fees, or commissions; however, failure to pay the emergency
444 assessment shall be treated as failure to pay premium. The
445 emergency assessments shall continue as long as any bonds issued
446 or other indebtedness incurred with respect to a deficit for
447 which the assessment was imposed remain outstanding, unless
448 adequate provision has been made for the payment of such bonds
449 or other indebtedness pursuant to the documents governing such
450 bonds or indebtedness.
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451 f. As used in this subsection for purposes of any deficit
452 incurred on or after January 25, 2007, the term "subject lines
453 of business" means insurance written by assessable insurers or
454 procured by assessable insureds for all property and casualty
455 lines of business in this state, but not including workers'
456 compensation or medical malpractice. As used in this sub -
457 subparagraph, the term "property and casualty lines of business"
458 includes all lines of business identified on Form 2, Exhibit of
459 Premiums and Losses, in the annual statement required of
460 authorized insurers under s. 624.424 and any rule adopted under
461 this section, except for those lines identified as accident and
462 health insurance and except for policies written under the
463 National Flood Insurance Program or the Federal Crop Insurance
464 Program. For purposes of this sub-subparagraph, the term
465 "workers' compensation" includes both workers' compensation
466 insurance and excess workers' compensation insurance.
467 g. The Florida Surplus Lines Service Office shall
468 determine annually the aggregate statewide written premium in
469 subject lines of business procured by assessable insureds and
470 report that information to the corporation in a form and at a
471 time the corporation specifies to ensure that the corporation
472 can meet the requirements of this subsection and the
473 corporation's financing obligations.
474 h. The Florida Surplus Lines Service Office shall verify
475 the proper application by surplus lines agents of assessment
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476 percentages for regular assessments and emergency assessments
477 levied under this subparagraph on assessable insureds and assist
478 the corporation in ensuring the accurate, timely collection and
479 payment of assessments by surplus lines agents as required by
480 the corporation.
481 i. Upon determination by the board of governors that an
482 account has a projected deficit, the board shall levy a Citizens
483 policyholder surcharge against all policyholders of the
484 corporation.
485 (I) The surcharge must shall be levied as a uniform
486 percentage of the premium for the policy of up to 15 percent of
487 such premium, and must which funds shall be used to offset the
488 deficit, as follows:
489 (A) If the total number of policyholders of the
490 corporation is less than 1 million, a surcharge of 15 percent of
491 the premium.
492 (B) If the total number of policyholders of the
493 corporation is at least 1 million but less than 1.5 million, a
494 surcharge of 20 percent of the premium.
495 (C) If the total number of policyholders of the
496 corporation is at least 1.5 million, a surcharge of 25 percent
497 of the premium.
498 (II) The surcharge is payable upon cancellation or
499 termination of the policy, upon renewal of the policy, or upon
500 issuance of a new policy by the corporation within the first 12
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501 months after the date of the levy or the period of time
502 necessary to fully collect the surcharge amount.
503 (III) The corporation may not levy any regular assessments
504 under paragraph (q) pursuant to sub-subparagraph a. or sub-
505 subparagraph b. with respect to a particular year's deficit
506 until the corporation has first levied the full amount of the
507 surcharge authorized by this sub-subparagraph.
508 (IV) The surcharge is not considered premium and is not
509 subject to commissions, fees, or premium taxes. However, failure
510 to pay the surcharge shall be treated as failure to pay premium.
511 j. If the amount of any assessments or surcharges
512 collected from corporation policyholders, assessable insurers or
513 their policyholders, or assessable insureds exceeds the amount
514 of the deficits, such excess amounts shall be remitted to and
515 retained by the corporation in a reserve to be used by the
516 corporation, as determined by the board of governors and
517 approved by the office, to pay claims or reduce any past,
518 present, or future plan-year deficits or to reduce outstanding
519 debt.
520 (c) The corporation's plan of operation:
521 1. Must provide for adoption of residential property and
522 casualty insurance policy forms and commercial residential and
523 nonresidential property insurance forms, which must be approved
524 by the office before use. The corporation shall adopt the
525 following policy forms:
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526 a. Standard personal lines policy forms that are
527 comprehensive multiperil policies providing full coverage of a
528 residential property equivalent to the coverage provided in the
529 private insurance market under an HO-3, HO-4, or HO-6 policy.
530 b. Basic personal lines policy forms that are policies
531 similar to an HO-8 policy or a dwelling fire policy that provide
532 coverage meeting the requirements of the secondary mortgage
533 market, but which is more limited than the coverage under a
534 standard policy.
535 c. Commercial lines residential and nonresidential policy
536 forms that are generally similar to the basic perils of full
537 coverage obtainable for commercial residential structures and
538 commercial nonresidential structures in the admitted voluntary
539 market.
540 d. Personal lines and commercial lines residential
541 property insurance forms that cover the peril of wind only. The
542 forms are applicable only to residential properties located in
543 areas eligible for coverage under the coastal account referred
544 to in sub-subparagraph (b)2.a.
545 e. Commercial lines nonresidential property insurance
546 forms that cover the peril of wind only. The forms are
547 applicable only to nonresidential properties located in areas
548 eligible for coverage under the coastal account referred to in
549 sub-subparagraph (b)2.a.
550 f. The corporation may adopt variations of the policy
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551 forms listed in sub-subparagraphs a.-e. which contain more
552 restrictive coverage.
553 g. Effective January 1, 2013, the corporation shall offer
554 a basic personal lines policy similar to an HO-8 policy with
555 dwelling repair based on common construction materials and
556 methods.
557 2. Must provide that the corporation adopt a program in
558 which the corporation and authorized insurers enter into quota
559 share primary insurance agreements for hurricane coverage, as
560 defined in s. 627.4025(2)(a), for eligible risks, and adopt
561 property insurance forms for eligible risks which cover the
562 peril of wind only.
563 a. As used in this subsection, the term:
564 (II) "Primary residence" means the residential dwelling
565 that the insured has represented as homestead on an insurance
566 application or otherwise to the corporation which is owned by a
567 citizen of the United States or a lawful permanent resident.
568 (III)(I) "Quota share primary insurance" means an
569 arrangement in which the primary hurricane coverage of an
570 eligible risk is provided in specified percentages by the
571 corporation and an authorized insurer. The corporation and
572 authorized insurer are each solely responsible for a specified
573 percentage of hurricane coverage of an eligible risk as set
574 forth in a quota share primary insurance agreement between the
575 corporation and an authorized insurer and the insurance
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576 contract. The responsibility of the corporation or authorized
577 insurer to pay its specified percentage of hurricane losses of
578 an eligible risk, as set forth in the agreement, may not be
579 altered by the inability of the other party to pay its specified
580 percentage of losses. Eligible risks that are provided hurricane
581 coverage through a quota share primary insurance arrangement
582 must be provided policy forms that set forth the obligations of
583 the corporation and authorized insurer under the arrangement,
584 clearly specify the percentages of quota share primary insurance
585 provided by the corporation and authorized insurer, and
586 conspicuously and clearly state that the authorized insurer and
587 the corporation may not be held responsible beyond their
588 specified percentage of coverage of hurricane losses.
589 (I)(II) "Eligible risks" means personal lines residential
590 and commercial lines residential risks that meet the
591 underwriting criteria of the corporation and are located in
592 areas that were eligible for coverage by the Florida Windstorm
593 Underwriting Association on January 1, 2002.
594 b. The corporation may enter into quota share primary
595 insurance agreements with authorized insurers at corporation
596 coverage levels of 90 percent and 50 percent.
597 c. If the corporation determines that additional coverage
598 levels are necessary to maximize participation in quota share
599 primary insurance agreements by authorized insurers, the
600 corporation may establish additional coverage levels. However,
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601 the corporation's quota share primary insurance coverage level
602 may not exceed 90 percent.
603 d. Any quota share primary insurance agreement entered
604 into between an authorized insurer and the corporation must
605 provide for a uniform specified percentage of coverage of
606 hurricane losses, by county or territory as set forth by the
607 corporation board, for all eligible risks of the authorized
608 insurer covered under the agreement.
609 e. Any quota share primary insurance agreement entered
610 into between an authorized insurer and the corporation is
611 subject to review and approval by the office. However, such
612 agreement shall be authorized only as to insurance contracts
613 entered into between an authorized insurer and an insured who is
614 already insured by the corporation for wind coverage.
615 f. For all eligible risks covered under quota share
616 primary insurance agreements, the exposure and coverage levels
617 for both the corporation and authorized insurers shall be
618 reported by the corporation to the Florida Hurricane Catastrophe
619 Fund. For all policies of eligible risks covered under such
620 agreements, the corporation and the authorized insurer must
621 maintain complete and accurate records for the purpose of
622 exposure and loss reimbursement audits as required by fund
623 rules. The corporation and the authorized insurer shall each
624 maintain duplicate copies of policy declaration pages and
625 supporting claims documents.
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626 g. The corporation board shall establish in its plan of
627 operation standards for quota share agreements which ensure that
628 there is no discriminatory application among insurers as to the
629 terms of the agreements, pricing of the agreements, incentive
630 provisions if any, and consideration paid for servicing policies
631 or adjusting claims.
632 h. The quota share primary insurance agreement between the
633 corporation and an authorized insurer must set forth the
634 specific terms under which coverage is provided, including, but
635 not limited to, the sale and servicing of policies issued under
636 the agreement by the insurance agent of the authorized insurer
637 producing the business, the reporting of information concerning
638 eligible risks, the payment of premium to the corporation, and
639 arrangements for the adjustment and payment of hurricane claims
640 incurred on eligible risks by the claims adjuster and personnel
641 of the authorized insurer. Entering into a quota sharing
642 insurance agreement between the corporation and an authorized
643 insurer is voluntary and at the discretion of the authorized
644 insurer.
645 3. May provide that the corporation may employ or
646 otherwise contract with individuals or other entities to provide
647 administrative or professional services that may be appropriate
648 to effectuate the plan. The corporation may borrow funds by
649 issuing bonds or by incurring other indebtedness, and shall have
650 other powers reasonably necessary to effectuate the requirements
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651 of this subsection, including, without limitation, the power to
652 issue bonds and incur other indebtedness in order to refinance
653 outstanding bonds or other indebtedness. The corporation may
654 seek judicial validation of its bonds or other indebtedness
655 under chapter 75. The corporation may issue bonds or incur other
656 indebtedness, or have bonds issued on its behalf by a unit of
657 local government pursuant to subparagraph (q)2. in the absence
658 of a hurricane or other weather-related event, upon a
659 determination by the corporation, subject to approval by the
660 office, that such action would enable it to efficiently meet the
661 financial obligations of the corporation and that such
662 financings are reasonably necessary to effectuate the
663 requirements of this subsection. The corporation may take all
664 actions needed to facilitate tax-free status for such bonds or
665 indebtedness, including formation of trusts or other affiliated
666 entities. The corporation may pledge assessments, projected
667 recoveries from the Florida Hurricane Catastrophe Fund, other
668 reinsurance recoverables, policyholder surcharges and other
669 surcharges, and other funds available to the corporation as
670 security for bonds or other indebtedness. In recognition of s.
671 10, Art. I of the State Constitution, prohibiting the impairment
672 of obligations of contracts, it is the intent of the Legislature
673 that no action be taken whose purpose is to impair any bond
674 indenture or financing agreement or any revenue source committed
675 by contract to such bond or other indebtedness.
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676 4. Must require that the corporation operate subject to
677 the supervision and approval of a board of governors consisting
678 of nine individuals who are residents of this state and who are
679 from different geographical areas of this the state, one of whom
680 is appointed by the Governor and serves solely to advocate on
681 behalf of the consumer. The appointment of a consumer
682 representative by the Governor is deemed to be within the scope
683 of the exemption provided in s. 112.313(7)(b) and is in addition
684 to the appointments authorized under sub-subparagraph a.
685 a. The Governor, the Chief Financial Officer, the
686 President of the Senate, and the Speaker of the House of
687 Representatives shall each appoint two members of the board. At
688 least one of the two members appointed by each appointing
689 officer must have demonstrated expertise in insurance and be
690 deemed to be within the scope of the exemption provided in s.
691 112.313(7)(b) at the time of appointment or reappointment. The
692 Chief Financial Officer shall designate one of the appointees as
693 chair. All board members serve at the pleasure of the appointing
694 officer. All members of the board are subject to removal at will
695 by the officers who appointed them. All board members, including
696 the chair, must be appointed to serve for 3-year terms beginning
697 annually on a date designated by the plan. However, for the
698 first term beginning on or after July 1, 2009, each appointing
699 officer shall appoint one member of the board for a 2 -year term
700 and one member for a 3-year term. A board vacancy shall be
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701 filled for the unexpired term by the appointing officer. The
702 Chief Financial Officer shall appoint a technical advisory group
703 to provide information and advice to the board in connection
704 with the board's duties under this subsection. The executive
705 director and senior managers of the corporation shall be engaged
706 by the board and serve at the pleasure of the board. Any
707 executive director appointed on or after July 1, 2006, is
708 subject to confirmation by the Senate. The executive directo r is
709 responsible for employing other staff as the corporation may
710 require, subject to review and concurrence by the board. As used
711 in this sub-subparagraph, the term "demonstrated expertise in
712 insurance" means at least 10 years of responsible experience:
713 (I) In property and casualty insurance as a full-time
714 employee, an officer or owner of a licensed insurance agency, or
715 an insurer writing residential property coverage; or
716 (II) As an insurance regulator or an executive or officer
717 of an insurance trade association.
718 b. The board shall create a Market Accountability Advisory
719 Committee to assist the corporation in developing awareness of
720 its rates and its customer and agent service levels in
721 relationship to the voluntary market insurers writing similar
722 coverage.
723 (I) The members of the advisory committee consist of the
724 following 11 persons, one of whom must be elected chair by the
725 members of the committee: four representatives, one appointed by
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726 the Florida Association of Insurance Agents, one by the Florida
727 Association of Insurance and Financial Advisors, one by the
728 Professional Insurance Agents of Florida, and one by the Latin
729 American Association of Insurance Agencies; three
730 representatives appointed by the insurers with the three highest
731 voluntary market share of residential property insurance
732 business in this the state; one representative from the Office
733 of Insurance Regulation; one consumer appointed by the board who
734 is insured by the corporation at the time of appointment to the
735 committee; one representative appointed by the Florida
736 Association of Realtors; and one representative appointed by the
737 Florida Bankers Association. All members shall be appointed to
738 3-year terms and may serve for consecutive terms.
739 (II) The committee shall report to the corporation at each
740 board meeting on insurance market issues that which may include
741 rates and rate competition with the voluntary market; service,
742 including policy issuance, claims processing, and general
743 responsiveness to policyholders, applicants, and agents; and
744 matters relating to depopulation.
745 5. Must provide a procedure for determining the
746 eligibility of a risk for coverage, as follows:
747 a. Subject to s. 627.3517, with respect to personal lines
748 residential risks, if the risk is offered coverage from an
749 authorized insurer at the insurer's approved rate under a
750 standard policy including wind coverage or, if consistent with
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751 the insurer's underwriting rules as filed with the office, a
752 basic policy including wind coverage, for a new application to
753 the corporation for coverage, the risk is not eligible for any
754 policy issued by the corporation unless the premium for coverage
755 from the authorized insurer is more than 20 percent greater than
756 the premium for comparable coverage from the corporation.
757 Whenever an offer of coverage for a personal lines residential
758 risk is received for a policyholder of the corporation at
759 renewal from an authorized insurer, if the offer is equal to or
760 less than the corporation's renewal premium for comparable
761 coverage, the risk is not eligible for coverage with the
762 corporation unless the premium for coverage from the authorized
763 insurer is more than 20 percent greater than the renewal premium
764 for comparable coverage from the corporation. If the risk is not
765 able to obtain such offer, the risk is eligible for a standard
766 policy including wind coverage or a basic policy including wind
767 coverage issued by the corporation; however, if the risk could
768 not be insured under a standard policy including wind coverage
769 regardless of market conditions, the risk is eligible for a
770 basic policy including wind coverage unless rejected under
771 subparagraph 8. However, a policyholder removed from the
772 corporation through an assumption agreement remains eligible for
773 coverage from the corporation until the end of the assumption
774 period. The corporation shall determine the type of policy to be
775 provided on the basis of objective standards specified in the
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776 underwriting manual and based on generally accepted underwriting
777 practices. A policyholder removed from the corporation through
778 an assumption agreement does not remain eligible for coverage
779 from the corporation.
780 (I) If the risk accepts an offer of coverage through the
781 market assistance plan or through a mechanism established by the
782 corporation other than a plan established by s. 627.3518, before
783 a policy is issued to the risk by the corporation or during the
784 first 30 days of coverage by the corporation, and the producing
785 agent who submitted the application to the plan or to the
786 corporation is not currently appointed by the insurer, the
787 insurer shall:
788 (A) Pay to the producing agent of record of the policy for
789 the first year, an amount that is the greater of the insurer's
790 usual and customary commission for the type of policy written or
791 a fee equal to the usual and customary commission of the
792 corporation; or
793 (B) Offer to allow the producing agent of record of the
794 policy to continue servicing the policy for at least 1 year and
795 offer to pay the agent the greater of the insurer's or the
796 corporation's usual and customary commission for the type of
797 policy written.
798
799 If the producing agent is unwilling or unable to accept
800 appointment, the new insurer shall pay the agent in accordance
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801 with sub-sub-sub-subparagraph (A).
802 (II) If the corporation enters into a contractual
803 agreement for a take-out plan, the producing agent of record of
804 the corporation policy is entitled to retain any unearned
805 commission on the policy, and the insurer shall:
806 (A) Pay to the producing agent of record, for the first
807 year, an amount that is the greater of the insurer's usual and
808 customary commission for the type of policy written or a fee
809 equal to the usual and customary commission of the corporation;
810 or
811 (B) Offer to allow the producing agent of record to
812 continue servicing the policy for at least 1 year and offer to
813 pay the agent the greater of the insurer's or the corporation's
814 usual and customary commission for the type of policy written.
815
816 If the producing agent is unwilling or unable to accept
817 appointment, the new insurer shall pay the agent in accordance
818 with sub-sub-sub-subparagraph (A).
819 b. With respect to commercial lines residential risks, for
820 a new application to the corporation for coverage, if the risk
821 is offered coverage under a policy including wind coverage from
822 an authorized insurer at its approved rate, the risk is not
823 eligible for a policy issued by the corporation unless the
824 premium for coverage from the authorized insurer is more than 20
825 15 percent greater than the premium for comparable coverage from
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826 the corporation. Whenever an offer of coverage for a commercial
827 lines residential risk is received for a policyholder of the
828 corporation at renewal from an authorized insurer, if the offer
829 is equal to or less than the corporation's renewal premium for
830 comparable coverage, the risk is not eligible for coverage with
831 the corporation unless the premium for coverage from the
832 authorized insurer is more than 20 percent greater than the
833 renewal premium for comparable coverage from the corporation . If
834 the risk is not able to obtain any such offer, the risk is
835 eligible for a policy including wind coverage issued by the
836 corporation. However, A policyholder removed from the
837 corporation through an assumption agreement does not remain
838 remains eligible for coverage from the corporation until the end
839 of the assumption period.
840 (I) If the risk accepts an offer of coverage through the
841 market assistance plan or through a mechanism established by the
842 corporation other than a plan established by s. 627.3518, before
843 a policy is issued to the risk by the corporation or during the
844 first 30 days of coverage by the corporation, and the producing
845 agent who submitted the application to the plan or the
846 corporation is not currently appointed by the insurer, the
847 insurer shall:
848 (A) Pay to the producing agent of record of the policy,
849 for the first year, an amount that is the greater of the
850 insurer's usual and customary commission for the type of policy
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851 written or a fee equal to the usual and customary commission of
852 the corporation; or
853 (B) Offer to allow the producing agent of record of the
854 policy to continue servicing the policy for at least 1 year and
855 offer to pay the agent the greater of the insurer's or the
856 corporation's usual and customary commission for the type of
857 policy written.
858
859 If the producing agent is unwilling or unable to accept
860 appointment, the new insurer shall pay the agent in accordance
861 with sub-sub-sub-subparagraph (A).
862 (II) If the corporation enters into a contractual
863 agreement for a take-out plan, the producing agent of record of
864 the corporation policy is entitled to retain any unearned
865 commission on the policy, and the insurer shall:
866 (A) Pay to the producing agent of record, for the first
867 year, an amount that is the greater of the insurer's usual and
868 customary commission for the type of policy written or a fee
869 equal to the usual and customary commission of the corporation;
870 or
871 (B) Offer to allow the producing agent of record to
872 continue servicing the policy for at least 1 year and offer to
873 pay the agent the greater of the insurer's or the corporation's
874 usual and customary commission for the type of policy written.
875
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876 If the producing agent is unwilling or unable to accept
877 appointment, the new insurer shall pay the agent in accordance
878 with sub-sub-sub-subparagraph (A).
879 c. For purposes of determining comparable coverage under
880 sub-subparagraphs a. and b., the comparison must be based on
881 those forms and coverages that are reasonably comparable. The
882 corporation may rely on a determination of comparable coverage
883 and premium made by the producing agent who submits the
884 application to the corporation, made in the agent's capacity as
885 the corporation's agent. A comparison may be made solely of the
886 premium with respect to the main building or structure only on
887 the following basis: the same coverage A or other building
888 limits; the same percentage hurricane deductible that applies on
889 an annual basis or that applies to each hurricane for commercial
890 residential property; the same percentage of ordinance and law
891 coverage, if the same limit is offered by both the corporation
892 and the authorized insurer; the same mitigation credits, to the
893 extent the same types of credits are offered both by the
894 corporation and the authorized insurer; the same method for loss
895 payment, such as replacement cost or actual cash value, if the
896 same method is offered both by the corporation and the
897 authorized insurer in accordance with underwriting rules; and
898 any other form or coverage that is reasonably comparable as
899 determined by the board. If an application is submitted to the
900 corporation for wind-only coverage in the coastal account, the
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901 premium for the corporation's wind-only policy plus the premium
902 for the ex-wind policy that is offered by an authorized insurer
903 to the applicant must be compared to the premium for multiperil
904 coverage offered by an authorized insurer, subject to the
905 standards for comparison specified in this subparagraph. If the
906 corporation or the applicant requests from the authorized
907 insurer a breakdown of the premium of the offer by types of
908 coverage so that a comparison may be made by the corporation or
909 its agent and the authorized insurer refuses or is unable to
910 provide such information, the corporation may treat the offer as
911 not being an offer of coverage from an authorized insurer at the
912 insurer's approved rate.
913 6. Must include rules for classifications of risks and
914 rates.
915 7. Must provide that if premium and investment income for
916 an account attributable to a particular calendar year are in
917 excess of projected losses and expenses for the account
918 attributable to that year, such excess shall be held in surplus
919 in the account. Such surplus must be available to defray
920 deficits in that account as to future years and used for that
921 purpose before assessing assessable insurers and assessable
922 insureds as to any calendar year.
923 8. Must provide objective criteria and procedures to be
924 uniformly applied to all applicants in determining whether an
925 individual risk is so hazardous as to be uninsurable. In making
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926 this determination and in establishing the criteria and
927 procedures, the following must be considered:
928 a. Whether the likelihood of a loss for the individual
929 risk is substantially higher than for other risks of the same
930 class; and
931 b. Whether the uncertainty associated with the individual
932 risk is such that an appropriate premium cannot be determined.
933
934 The acceptance or rejection of a risk by the corporation must
935 shall be construed as the private placement of insurance, and
936 the provisions of chapter 120 does do not apply.
937 9. Must provide that the corporation make its best efforts
938 to procure catastrophe reinsurance at reasonable rates, to cover
939 its projected 100-year probable maximum loss as determined by
940 the board of governors. If catastrophe reinsurance is not
941 available at reasonable rates, the corporation need not purchase
942 it, but the corporation shall include the costs of reinsurance
943 to cover its projected 100-year probable maximum loss in its
944 rate calculations even if it does not purchase catastrophe
945 reinsurance.
946 10. The policies issued by the corporation Must provide
947 that if the corporation or the market assistance plan obtains an
948 offer from an authorized insurer to cover the risk at its
949 approved rates, the risk is no longer eligible for renewal
950 through the corporation, except as otherwise provided in this
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951 subsection.
952 11. Corporation policies and applications Must include a
953 notice that the corporation policy could, under this section, be
954 replaced with a policy issued by an authorized insurer which
955 does not provide coverage identical to the coverage provided by
956 the corporation. The notice must also specify that acceptance of
957 corporation coverage creates a conclusive presumption that the
958 applicant or policyholder is aware of this potential.
959 12. May establish, subject to approval by the office,
960 different eligibility requirements and operational procedures
961 for any line or type of coverage for any specified county or
962 area if the board determines that such changes are justified due
963 to the voluntary market being sufficiently stable and
964 competitive in such area or for such line or type of coverage
965 and that consumers who, in good faith, are unable to obtain
966 insurance through the voluntary market through ordinary methods
967 continue to have access to coverage from the corporation. If
968 coverage is sought in connection with a real property transfer,
969 the requirements and procedures may not provide an effective
970 date of coverage later than the date of the closing of the
971 transfer as established by the transferor, the transferee, and,
972 if applicable, the lender.
973 13. Must provide that, with respect to the coastal
974 account, any assessable insurer with a surplus as to
975 policyholders of $25 million or less writing 25 percent or more
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976 of its total countrywide property insurance premiums in this
977 state may petition the office, within the first 90 days of each
978 calendar year, to qualify as a limited apportionment company. A
979 regular assessment levied by the corporation on a limited
980 apportionment company for a deficit incurred by the corporation
981 for the coastal account may be paid to the corporation on a
982 monthly basis as the assessments are collected by the limited
983 apportionment company from its insureds, but a limited
984 apportionment company must begin collecting the regular
985 assessments not later than 90 days after the regular assessments
986 are levied by the corporation, and the regular assessments must
987 be paid in full within 15 months after being levied by the
988 corporation. A limited apportionment company shall collect from
989 its policyholders any emergency assessment imposed under sub -
990 subparagraph (b)3.d. The plan must provide that, if the office
991 determines that any regular assessment will result in an
992 impairment of the surplus of a limited apportionment company,
993 the office may direct that all or part of such assessment be
994 deferred as provided in subparagraph (q)4. However, an emergency
995 assessment to be collected from policyholders under sub -
996 subparagraph (b)3.d. may not be limited or deferred.
997 14. Must provide that the corporation appoint as its
998 licensed agents only those agents who throughout such
999 appointments also hold an appointment as defined in s. 626.015
1000 by an insurer who is authorized to write and is actually writing
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1001 or renewing personal lines residential property coverage,
1002 commercial residential property coverage, or commercial
1003 nonresidential property coverage within this the state.
1004 15. Must provide a premium payment plan option to its
1005 policyholders which, at a minimum, allows for quarterly and
1006 semiannual payment of premiums. A monthly payment plan may, but
1007 is not required to, be offered.
1008 16. Must limit coverage on mobile homes or manufactured
1009 homes built before 1994 to actual cash value of the dwelling
1010 rather than replacement costs of the dwelling.
1011 17. Must provide coverage for manufactured or mobile home
1012 dwellings. Such coverage must also include the following
1013 attached structures:
1014 a. Screened enclosures that are aluminum framed or
1015 screened enclosures that are not covered by the same or
1016 substantially the same materials as those of the primary
1017 dwelling;
1018 b. Carports that are aluminum or carports that are not
1019 covered by the same or substantially the same materials as those
1020 of the primary dwelling; and
1021 c. Patios that have a roof covering that is constructed of
1022 materials that are not the same or substantially the same
1023 materials as those of the primary dwelling.
1024
1025 The corporation shall make available a policy for mobile homes
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1026 or manufactured homes for a minimum insured value of at least
1027 $3,000.
1028 18. May provide such limits of coverage as the board
1029 determines, consistent with the requirements of this subsection.
1030 19. May require commercial property to meet specified
1031 hurricane mitigation construction features as a condition of
1032 eligibility for coverage.
1033 20. Must provide that new or renewal policies issued by
1034 the corporation on or after January 1, 2012, which cover
1035 sinkhole loss do not include coverage for any loss to
1036 appurtenant structures, driveways, sidewalks, decks, or patios
1037 that are directly or indirectly caused by sinkhole activity. The
1038 corporation shall exclude such coverage using a notice of
1039 coverage change, which may be included with the policy renewal,
1040 and not by issuance of a notice of nonrenewal of the excluded
1041 coverage upon renewal of the current policy.
1042 21. As of January 1, 2012, must require that the agent
1043 obtain from an applicant for coverage from the corporation an
1044 acknowledgment signed by the applicant, which includes, at a
1045 minimum, the following statement:
1046 ACKNOWLEDGMENT OF POTENTIAL SURCHARGE
1047 AND ASSESSMENT LIABILITY:
1048 1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
1049 CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
1050 DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
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1051 MY POLICY COULD BE SUBJECT TO SURCHARGES, WHICH WILL BE DUE AND
1052 PAYABLE UPON RENEWAL, CANCELLATION, OR TERMINATION OF THE
1053 POLICY, AND THAT THE SURCHARGES COULD BE AS HIGH AS 45 PERCENT
1054 OF MY PREMIUM, OR A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA
1055 LEGISLATURE.
1056 2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
1057 SURCHARGE, WHICH COULD BE AS HIGH AS 45 PERCENT OF MY PREMIUM,
1058 BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND THAT TO
1059 BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN
1060 PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR RENEWING COVERAGE
1061 WITH CITIZENS. I UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES
1062 ARE REGULATED AND APPROVED BY THE STATE.
1063 3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
1064 ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
1065 INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
1066 FLORIDA LEGISLATURE.
1067 4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
1068 CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
1069 STATE OF FLORIDA.
1070 a. The corporation shall maintain, in electronic format or
1071 otherwise, a copy of the applicant's signed acknowledgment and
1072 provide a copy of the statement to the policyholder as part of
1073 the first renewal after the effective date of this subparagraph.
1074 b. The signed acknowledgment form creates a conclusive
1075 presumption that the policyholder understood and accepted his or
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1076 her potential surcharge and assessment liability as a
1077 policyholder of the corporation.
1078 (d)1. All prospective employees for senior management
1079 positions, as defined by the plan of operation, are subject to
1080 background checks as a prerequisite for employment. The office
1081 shall conduct the background checks pursuant to ss. 624.34,
1082 624.404(3), and 628.261.
1083 2. On or before July 1 of each year, employees of the
1084 corporation must sign and submit a statement attesting that they
1085 do not have a conflict of interest, as defined in part III of
1086 chapter 112. As a condition of employment, all prospective
1087 employees must sign and submit to the corporation a conflict -of-
1088 interest statement.
1089 3. The executive director, senior managers, and members of
1090 the board of governors are subject to part III of chapter 112,
1091 including, but not limited to, the code of ethics and public
1092 disclosure and reporting of financial interests, pursuant to s.
1093 112.3145. For purposes of applying part III of chapter 112 to
1094 activities of the executive director, senior managers, and
1095 members of the board of governors, those persons shall be
1096 considered public officers or employees and the corporation
1097 shall be considered their agency. Notwithstanding s.
1098 112.3143(2), a board member may not vote on any measure that
1099 would inure to his or her special private gain or loss; that he
1100 or she knows would inure to the special private gain or loss of
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1101 any principal by whom he or she is retained or to the parent
1102 organization or subsidiary of a corporate principal by which he
1103 or she is retained, other than an agency as defined in s.
1104 112.312; or that he or she knows would inure to the special
1105 private gain or loss of a relative or business associate of the
1106 public officer. Before the vote is taken, such member shall
1107 publicly state to the assembly the nature of his or her interest
1108 in the matter from which he or she is abstaining from voting
1109 and, within 15 days after the vote occurs, disclose the nature
1110 of his or her interest as a public record in a memorandum filed
1111 with the person responsible for recording the minutes of the
1112 meeting, who shall incorporate the memorandum in the minutes.
1113 Senior managers and board members are also required to file such
1114 disclosures with the Commission on Ethics and the Office of
1115 Insurance Regulation. The executive director of the c orporation
1116 or his or her designee shall notify each existing and newly
1117 appointed member of the board of governors and senior managers
1118 of their duty to comply with the reporting requirements of part
1119 III of chapter 112. At least quarterly, the executive dire ctor
1120 or his or her designee shall submit to the Commission on Ethics
1121 a list of names of the senior managers and members of the board
1122 of governors who are subject to the public disclosure
1123 requirements under s. 112.3145.
1124 4. Notwithstanding s. 112.3148, s. 112.3149, or any other
1125 provision of law, an employee or board member may not knowingly
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1126 accept, directly or indirectly, any gift or expenditure from a
1127 person or entity, or an employee or representative of such
1128 person or entity, which has a contractual relationship with the
1129 corporation or who is under consideration for a contract. An
1130 employee or board member who fails to comply with subparagraph
1131 3. or this subparagraph is subject to penalties provided under
1132 ss. 112.317 and 112.3173.
1133 5. Any senior manager of the corporation who is employed
1134 on or after January 1, 2007, regardless of the date of hire, who
1135 subsequently retires or terminates employment is prohibited from
1136 representing another person or entity before the corporation for
1137 2 years after retirement or termination of employment from the
1138 corporation.
1139 6. The executive director, members of the board of
1140 governors, and senior managers of the corporation are prohibited
1141 from having any employment or contractual relationship for 2
1142 years after retirement from or termination of service to the
1143 corporation with an insurer that has entered into a take -out
1144 bonus agreement with the corporation.
1145 7. At the time of appointment, the executive director must
1146 have the experience, character, and qualifications sufficient to
1147 qualify as a chief executive officer of an insurer in accordance
1148 with s. 624.404(3).
1149 (n)1. Rates for coverage provided by the corporation must
1150 be actuarially sound and subject to s. 627.062, except as
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1151 otherwise provided in this paragraph. The corporation shall file
1152 its recommended rates with the office at least annually. The
1153 corporation shall provide any additional information regarding
1154 the rates which the office requires. The office shall consider
1155 the recommendations of the board and issue a final order
1156 establishing the rates for the corporation within 45 days after
1157 the recommended rates are filed. The corporation may not pursue
1158 an administrative challenge or judicial review of the final
1159 order of the office.
1160 2. In addition to the rates otherwise determined pursuant
1161 to this paragraph, the corporation shall impose and collect an
1162 amount equal to the premium tax provided in s. 624.509 to
1163 augment the financial resources of the corporation.
1164 3. If After the public hurricane loss-projection model
1165 under s. 627.06281 is has been found to be accurate and reliable
1166 by the Florida Commission on Hurricane Loss Projection
1167 Methodology, it must the model shall be considered when
1168 establishing the windstorm portion of the corporation's rates.
1169 The corporation may use the public model results in combination
1170 with the results of private models to calculate rates for the
1171 windstorm portion of the corporation's rates. This subparagraph
1172 does not require or allow the corporation to adopt rates lower
1173 than the rates otherwise required or allowed by this paragraph.
1174 4. The corporation must make a recommended actuarially
1175 sound rate filing for each personal and commercial line of
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1176 business it writes.
1177 5. Notwithstanding the board's recommended rates and the
1178 office's final order regarding the corporation's filed rates
1179 under subparagraph 1., the corporation shall annually implement
1180 a rate increase that which, except for sinkhole coverage, does
1181 not exceed the following for any single policy issued by the
1182 corporation, excluding coverage changes and surcharges:
1183 a. Eleven percent for 2022.
1184 b. Twelve percent for 2023.
1185 c. Thirteen percent for 2024.
1186 d. Fourteen percent for 2025.
1187 e. Fifteen percent for 2026 and all subsequent years.
1188 6. The corporation may also implement an increase to
1189 reflect the effect on the corporation of the cash buildup factor
1190 pursuant to s. 215.555(5)(b).
1191 7. The corporation's implementation of rates as prescribed
1192 in subparagraph 5. must shall cease for any line of business
1193 written by the corporation upon the corporation's implementation
1194 of actuarially sound rates. Thereafter, the corporation shall
1195 annually make a recommended actuarially sound rate filing for
1196 each commercial and personal line of business the corporation
1197 writes.
1198 (q)1. The corporation shall certify to the office its
1199 needs for annual assessments as to a particular calendar year,
1200 and for any interim assessments that it deems to be necessary to
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1201 sustain operations as to a particular year pending the receipt
1202 of annual assessments. Upon verification, the office shall
1203 approve such certification, and the corporation shall levy such
1204 annual or interim assessments. Such assessments shall be
1205 prorated as provided in paragraph (b). The corporation shall
1206 take all reasonable and prudent steps necessary to collect t he
1207 amount of assessments due from each assessable insurer,
1208 including, if prudent, filing suit to collect the assessments,
1209 and the office may provide such assistance to the corporation it
1210 deems appropriate. If the corporation is unable to collect an
1211 assessment from any assessable insurer, the uncollected
1212 assessments shall be levied as an additional assessment against
1213 the assessable insurers and any assessable insurer required to
1214 pay an additional assessment as a result of such failure to pay
1215 shall have a cause of action against such nonpaying assessable
1216 insurer. Assessments shall be included as an appropriate factor
1217 in the making of rates. The failure of a surplus lines agent to
1218 collect and remit any regular or emergency assessment levied by
1219 the corporation is considered to be a violation of s. 626.936
1220 and subjects the surplus lines agent to the penalties provided
1221 in that section.
1222 2. The governing body of any unit of local government, any
1223 residents of which are insured by the corporation, may issue
1224 bonds as defined in s. 125.013 or s. 166.101 from time to time
1225 to fund an assistance program, in conjunction with the
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1226 corporation, for the purpose of defraying deficits of the
1227 corporation. In order to avoid needless and indiscriminate
1228 proliferation, duplication, and fragmentation of such assistance
1229 programs, any unit of local government, any residents of which
1230 are insured by the corporation, may provide for the payment of
1231 losses, regardless of whether or not the losses occurred within
1232 or outside of the territorial jurisdiction of the local
1233 government. Revenue bonds under this subparagraph may not be
1234 issued until validated pursuant to chapter 75, unless a state of
1235 emergency is declared by executive order or proclamation of the
1236 Governor pursuant to s. 252.36 making such findings as are
1237 necessary to determine that it is in the best interests of, and
1238 necessary for, the protection of the public health, safety, and
1239 general welfare of residents of this state and declaring it an
1240 essential public purpose to permit certain municipalities or
1241 counties to issue such bonds as will permit relief to claimants
1242 and policyholders of the corporation. Any such unit of local
1243 government may enter into such contracts with the corporation
1244 and with any other entity created pursuant to this subs ection as
1245 are necessary to carry out this paragraph. Any bonds issued
1246 under this subparagraph shall be payable from and secured by
1247 moneys received by the corporation from emergency assessments
1248 under sub-subparagraph (b)3.d., and assigned and pledged to or
1249 on behalf of the unit of local government for the benefit of the
1250 holders of such bonds. The funds, credit, property, and taxing
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1251 power of the state or of the unit of local government may shall
1252 not be pledged for the payment of such bonds.
1253 3.a. The corporation shall adopt one or more programs
1254 subject to approval by the office for the reduction of both new
1255 and renewal writings in the corporation. Beginning January 1,
1256 2008, any program the corporation adopts for the payment of
1257 bonuses to an insurer for each risk the insurer removes from the
1258 corporation shall comply with s. 627.3511(2) and may not exceed
1259 the amount referenced in s. 627.3511(2) for each risk removed.
1260 The corporation may consider any prudent and not unfairly
1261 discriminatory approach to reducing corporation writings, and
1262 may adopt a credit against assessment liability or other
1263 liability that provides an incentive for insurers to take risks
1264 out of the corporation and to keep risks out of the corporation
1265 by maintaining or increasing voluntary writings in counties or
1266 areas in which corporation risks are highly concentrated and a
1267 program to provide a formula under which an insurer voluntarily
1268 taking risks out of the corporation by maintaining or increasing
1269 voluntary writings will be relieved wholly or partially from
1270 assessments under sub-subparagraph (b) 3.a. However, any "take-
1271 out bonus" or payment to an insurer must be conditioned on the
1272 property being insured for at least 5 years by the insurer,
1273 unless canceled or nonrenewed by the policyholder. If the policy
1274 is canceled or nonrenewed by the policyholder before the end of
1275 the 5-year period, the amount of the take-out bonus must be
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1276 prorated for the time period the policy was insured. When the
1277 corporation enters into a contractual agreement for a take -out
1278 plan, the producing agent of record of the corporation policy is
1279 entitled to retain any unearned commission on such policy, and
1280 the insurer shall either:
1281 (I) Pay to the producing agent of record of the policy,
1282 for the first year, an amount which is the greater of the
1283 insurer's usual and customary commission for the type of policy
1284 written or a policy fee equal to the usual and customary
1285 commission of the corporation; or
1286 (II) Offer to allow the producing agent of record of the
1287 policy to continue servicing the policy for a period of not less
1288 than 1 year and offer to pay the agent the insurer's usual and
1289 customary commission for the type of policy written. If the
1290 producing agent is unwilling or unable to accept appointment by
1291 the new insurer, the new insurer shall pay the agent in
1292 accordance with sub-sub-subparagraph (I).
1293 b. Any credit or exemption from regular assessments
1294 adopted under this subparagraph shall last no longer than the 3
1295 years following the cancellation or expiration of the policy by
1296 the corporation. With the approval of the office, the board may
1297 extend such credits for an additional year if the insurer
1298 guarantees an additional year of renewability for all policies
1299 removed from the corporation, or for 2 additional years if the
1300 insurer guarantees 2 additional years of renewability for all
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1301 policies so removed.
1302 c. There shall be no credit, limitation, exemption, or
1303 deferment from emergency assessments to be collected from
1304 policyholders pursuant to sub-subparagraph (b)3.d.
1305 d. Notwithstanding any other law, for purposes of a
1306 depopulation, take-out, or keep-out program adopted by the
1307 corporation, including an initial or renewal offer of coverage
1308 made to a policyholder removed from the corporation pursuant to
1309 such program, an eligible surplus lines insurer may participate
1310 in the program in the same manner and on the same terms as an
1311 authorized insurer, except as provided under this sub -
1312 subparagraph.
1313 (I) To qualify for participation, the surplus lines
1314 insurer must first obtain approval from the office for its
1315 depopulation, take-out, or keep-out plan and then comply with
1316 all of the corporation's requirements for the plan applicable to
1317 admitted insurers and with all statutory provisions applicable
1318 to the removal of policies from the corporation.
1319 (II) In considering a surplus lines insurer's request for
1320 approval for its plan, the office shall determine whether the
1321 surplus lines insurer meets the following requirements:
1322 (A) Maintains a surplus of $50 million on a company or
1323 pooled basis;
1324 (B) Has a superior, excellent, exceptional, or equivalent
1325 financial strength rating by a rating agency acceptable to the
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1326 office;
1327 (C) Maintains reserves, surplus, reinsurance, and
1328 reinsurance equivalents sufficient to cover the insurer's 100 -
1329 year probable maximum hurricane loss at least twice in a single
1330 hurricane season and submits such reinsurance to the office to
1331 review for purposes of the take-out;
1332 (D) Provides prominent notice to the policyholder before
1333 the assumption of the policy that surplus lines policie s are not
1334 provided coverage by the Florida Insurance Guaranty Association
1335 and provides an outline of any substantial differences in
1336 coverage between the existing policy and the policy being
1337 offered to the policyholder; and
1338 (E) Provides policy coverage similar to that provided by
1339 the corporation.
1340 (III) To obtain approval for a plan, the surplus lines
1341 insurer must file the following with the office:
1342 (A) Information requested by the office to demonstrate
1343 compliance with s. 624.404(3), including biographical
1344 affidavits, fingerprints processed pursuant to s. 624.34, and
1345 the results of criminal history records checks for officers and
1346 directors of the insurer and its parent or holding company;
1347 (B) A service-of-process consent and agreement form
1348 executed by the insurer;
1349 (C) Proof that the insurer has been an eligible or
1350 authorized insurer for at least 3 years;
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1351 (D) A duly authenticated copy of the insurer's current
1352 audited financial statement, in English, which, in the case of
1353 statements originally made in the currencies of other countries,
1354 expresses all monetary values in United States dollars, at an
1355 exchange rate then current and shown in the statement, and
1356 including any additional information relative to the insurer as
1357 the office may request;
1358 (E) A complete certified copy of the latest official
1359 financial statement required by the insurer's domiciliary state,
1360 if different from the statement required by sub-sub-sub-
1361 subparagraph (D); and
1362 (F) If applicable, a copy of the United States trust
1363 account agreement.
1364
1365 This sub-sub-subparagraph does not subject any surplus lines
1366 insurer to requirements in addition to part VIII of chapter 626.
1367 Surplus lines brokers making an offer of coverage under this
1368 sub-sub-subparagraph are not required to comply with s.
1369 626.916(1)(a), (b), (c), or (e).
1370 (IV) Within 10 days after the date of assumption, the
1371 surplus lines insurer assuming policies from the corporation
1372 shall remit to the Bureau of Collateral Management within the
1373 Department of Financial Services a special deposit equal to the
1374 unearned premium net of unearned commissions on the assumed
1375 block of business. The surplus lines insurer shall submit to the
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1376 office, along with the special deposit, an accounting of the
1377 policies assumed and the amount of unearned premium for such
1378 policies and a sworn affidavit attesting to the accuracy of the
1379 accounting by an officer of the surplus lines insurer.
1380 Thereafter, the surplus lines insurer shall make a filing within
1381 10 days after the end of each calendar quarter attesting to t he
1382 unearned premium in force for the previous quarter on policies
1383 assumed from the corporation and shall submit additional funds
1384 with that filing if the special deposit is insufficient to cover
1385 the unearned premium on assumed policies, or shall receive a
1386 return of funds within 60 days if the special deposit exceeds
1387 the amount of unearned premium required for assumed policies.
1388 The special deposit is an asset of the surplus lines insurer
1389 which is held by the department for the benefit of state
1390 policyholders of the surplus lines insurer in the event of the
1391 insolvency of the surplus lines insurer. If an order of
1392 liquidation is entered in any state against the surplus lines
1393 insurer, the department may use the special deposit for payment
1394 of unearned premium or policy claims, return all or part of the
1395 deposit to the domiciliary receiver, or use the funds in
1396 accordance with any action authorized under part I of chapter
1397 631 or in compliance with any order of a court having
1398 jurisdiction over the insolvency.
1399 (V) In advance of a surplus lines insurer assuming a
1400 policy, surplus lines brokers representing a surplus lines
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1401 insurer on a take-out program shall obtain confirmation, in
1402 written or e-mail form, from each producing agent stating that
1403 the agent is willing to participate in the take-out program with
1404 the surplus lines insurer engaging in the take-out program. The
1405 take-out program is also subject to s. 627.3517. If a
1406 policyholder is selected for removal from the corporation by a
1407 surplus lines insurer and an authorized insurer, the corporation
1408 must give priority to the offer of coverage from the authorized
1409 insurer.
1410 (VI)(A) A risk that has a dwelling replacement cost of
1411 $700,000 or more or a single condominium unit that has a
1412 combined dwelling and contents replacement cost of $700,000 or
1413 more is not eligible for coverage by the corporation if it is
1414 offered comparable coverage from a qualified surplus lines
1415 insurer at a premium no greater than 15 percent above the
1416 premium charged by the corporation.
1417 (B) A risk that has a dwelling replacement cost below
1418 $700,000 or a single condominium unit that has a combined
1419 dwelling and contents replacement cost below $700,000 remains
1420 eligible for coverage by the corporation if it is offered
1421 coverage from a qualified surplus lines insurer.
1422 4. The plan shall provide for the deferment, in whole or
1423 in part, of the assessment of an assessable insurer, other than
1424 an emergency assessment collected from policyholders pursuant to
1425 sub-subparagraph (b)3.d., if the office finds that payment of
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1426 the assessment would endanger or impair the solvency of the
1427 insurer. In the event an assessment against an assessable
1428 insurer is deferred in whole or in part, the amount by which
1429 such assessment is deferred may be assessed against the other
1430 assessable insurers in a manner consistent with the basis for
1431 assessments set forth in paragraph (b).
1432 5. Effective July 1, 2007, in order to evaluate the costs
1433 and benefits of approved take-out plans, if the corporation pays
1434 a bonus or other payment to an insurer for an approved take-out
1435 plan, it shall maintain a record of the address or such other
1436 identifying information on the property or risk removed in order
1437 to track if and when the property or risk is later insured by
1438 the corporation.
1439 6. Any policy taken out, assumed, or removed from the
1440 corporation is, as of the effective date of the take-out,
1441 assumption, or removal, direct insurance issued by the insurer
1442 and not by the corporation, even if the corporation continues to
1443 service the policies. This subparagraph applies to policies of
1444 the corporation and not policies taken out, assumed, or removed
1445 from any other entity.
1446 7. For a policy taken out, assumed, or removed from the
1447 corporation, the insurer may, for a period of no more than 3
1448 years, continue to use any of the corporation's policy forms or
1449 endorsements that apply to the policy taken out, removed, or
1450 assumed without obtaining approval from the office for use of
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1451 such policy form or endorsement.
1452 (x)1. The following records of the corporation are
1453 confidential and exempt from the provisions of s. 119.07(1) and
1454 s. 24(a), Art. I of the State Constitution:
1455 a. Underwriting files, except that a policyholder or an
1456 applicant shall have access to his or her own underwriting
1457 files. Confidential and exempt underwriting file records may
1458 also be released to other governmental agencies upon written
1459 request and demonstration of need; such records held by the
1460 receiving agency remain confidential and exempt as provided
1461 herein.
1462 b. Claims files, until termination of all litigat ion and
1463 settlement of all claims arising out of the same incident,
1464 although portions of the claims files may remain exempt, as
1465 otherwise provided by law. Confidential and exempt claims file
1466 records may be released to other governmental agencies upon
1467 written request and demonstration of need; such records held by
1468 the receiving agency remain confidential and exempt as provided
1469 herein.
1470 c. Records obtained or generated by an internal auditor
1471 pursuant to a routine audit, until the audit is completed, or if
1472 the audit is conducted as part of an investigation, until the
1473 investigation is closed or ceases to be active. An investigation
1474 is considered "active" while the investigation is being
1475 conducted with a reasonable, good faith belief that it could
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1476 lead to the filing of administrative, civil, or criminal
1477 proceedings.
1478 d. Matters reasonably encompassed in privileged attorney-
1479 client communications.
1480 e. Proprietary information licensed to the corporation
1481 under contract and the contract provides for the confidentiality
1482 of such proprietary information.
1483 f. All information relating to the medical condition or
1484 medical status of a corporation employee which is not relevant
1485 to the employee's capacity to perform his or her duties, except
1486 as otherwise provided in this paragraph. Information that is
1487 exempt includes shall include, but is not limited to,
1488 information relating to workers' compensation, insurance
1489 benefits, and retirement or disability benefits.
1490 g. Upon an employee's entrance into the employee
1491 assistance program, a program to assist any employee who has a
1492 behavioral or medical disorder, substance abuse problem, or
1493 emotional difficulty that affects the employee's job
1494 performance, all records relative to that participation are
1495 shall be confidential and exempt from the provisions of s.
1496 119.07(1) and s. 24(a), Art. I of the State Constitution, except
1497 as otherwise provided in s. 112.0455(11).
1498 h. Information relating to negotiations for financing,
1499 reinsurance, depopulation, or contractual services, until the
1500 conclusion of the negotiations.
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1501 i. Minutes of closed meetings regarding underwriting
1502 files, and minutes of closed meetings regarding an open claims
1503 file until termination of all litigation and settlement of all
1504 claims with regard to that claim, except that informa tion
1505 otherwise confidential or exempt by law must shall be redacted.
1506 2. If an authorized insurer, a reinsurance intermediary,
1507 an eligible surplus lines insurer, or an entity that has filed
1508 an application with the office for licensure as a property and
1509 casualty insurer in this state is considering writing or
1510 assisting in the underwriting of a risk insured by the
1511 corporation, relevant information from both the underwriting
1512 files and confidential claims files may be released to the
1513 insurer, reinsurance intermediary, eligible surplus lines
1514 insurer, or entity that has been created to seek authority to
1515 write property and casualty insurance in this state, provided
1516 that the recipient insurer agrees in writing, notarized and
1517 under oath, to maintain the confidentiality of such files. If a
1518 policy file is transferred to an insurer, that policy file is no
1519 longer a public record because it is not held by an agency
1520 subject to the provisions of the public records law.
1521 Underwriting files and confidential claims files may al so be
1522 released to staff and the board of governors of the market
1523 assistance plan established pursuant to s. 627.3515, who must
1524 retain the confidentiality of such files, except such files may
1525 be released to authorized insurers that are considering assuming
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1526 the risks to which the files apply, provided the insurer agrees
1527 in writing, notarized and under oath, to maintain the
1528 confidentiality of such files. Finally, the corporation or the
1529 board or staff of the market assistance plan may make the
1530 following information obtained from underwriting files and
1531 confidential claims files available to an entity that has
1532 obtained a permit to become an authorized insurer, a reinsurer
1533 that may provide reinsurance under s. 624.610, a licensed
1534 reinsurance broker, a licensed rating organization, a modeling
1535 company, or a licensed general lines insurance agent: name,
1536 address, and telephone number of the residential property owner
1537 or insured; location of the risk; rating information; loss
1538 history; and policy type. The receiving person must retain the
1539 confidentiality of the information received and may use the
1540 information only for the purposes of developing a take-out plan
1541 or a rating plan to be submitted to the office for approval or
1542 otherwise analyzing the underwriting of a risk or r isks insured
1543 by the corporation on behalf of the private insurance market. A
1544 licensed general lines insurance agent may not use such
1545 information for the direct solicitation of policyholders.
1546 3. A policyholder who has filed suit against the
1547 corporation has the right to discover the contents of his or her
1548 own claims file to the same extent that discovery of such
1549 contents would be available from a private insurer in litigation
1550 as provided by the Florida Rules of Civil Procedure, the Florida
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1551 Evidence Code, and other applicable law. Pursuant to subpoena, a
1552 third party has the right to discover the contents of an
1553 insured's or applicant's underwriting or claims file to the same
1554 extent that discovery of such contents would be available from a
1555 private insurer by subpoena as provided by the Florida Rules of
1556 Civil Procedure, the Florida Evidence Code, and other applicable
1557 law, and subject to any confidentiality protections requested by
1558 the corporation and agreed to by the seeking party or ordered by
1559 the court. The corporation may release confidential underwriting
1560 and claims file contents and information as it deems necessary
1561 and appropriate to underwrite or service insurance policies and
1562 claims, subject to any confidentiality protections deemed
1563 necessary and appropriate by the corporation.
1564 4. Portions of meetings of the corporation are exempt from
1565 the provisions of s. 286.011 and s. 24(b), Art. I of the State
1566 Constitution wherein confidential underwriting files or
1567 confidential open claims files are discussed. All portions of
1568 corporation meetings which are closed to the public shall be
1569 recorded by a court reporter. The court reporter shall record
1570 the times of commencement and termination of the meeting, all
1571 discussion and proceedings, the names of all persons present at
1572 any time, and the names of all persons speaking. No portion of
1573 any closed meeting shall be off the record. Subject to the
1574 provisions hereof and s. 119.07(1)(d)-(f), the court reporter's
1575 notes of any closed meeting shall be retained by the corporation
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1576 for a minimum of 5 years. A copy of the transcript, less any
1577 exempt matters, of any closed meeting wherein claims are
1578 discussed shall become public as to individual claims after
1579 settlement of the claim.
1580 (ii) The corporation shall revise the programs adopted
1581 pursuant to sub-subparagraph (q)3.a. for personal lines
1582 residential policies to maximize policyholder options and
1583 encourage increased participation by insurers and agents. After
1584 January 1, 2017, a policy may not be taken out of the
1585 corporation unless the provisions of this paragraph are met.
1586 1. The corporation must publish a periodic schedule of
1587 cycles during which an insurer may identify, and notify the
1588 corporation of, policies that the insurer is requesting to take
1589 out. A request must include a description of the coverage
1590 offered and an estimated premium and must be submitted to the
1591 corporation in a form and manner prescribed by the corporation.
1592 2. The corporation must maintain and make available to the
1593 agent of record a consolidated list of all insurers requesting
1594 to take out a policy. The list must include a description of the
1595 coverage offered and the estimated premium for each take -out
1596 request.
1597 3. The corporation must provide written notice to the
1598 policyholder and the agent of record regarding all insurers
1599 requesting to take out the policy, which must inform that a
1600 take-out offer that is not more than 20 percent greater than the
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1601 corporation's premium renders the risk ineligible for coverage
1602 from the corporation and regarding the policyholder's option to
1603 accept a take-out offer or to reject all take-out offers and to
1604 remain with the corporation. The notice must be in a format
1605 prescribed by the corporation and include, for each take -out
1606 offer:
1607 a. The amount of the estimated premium;
1608 b. A description of the coverage; and
1609 c. A comparison of the estimated premium and coverage
1610 offered by the insurer to the estimated premium and coverage
1611 provided by the corporation.
1612 Section 3. Section 627.3517, Florida Statutes, is amended
1613 to read:
1614 627.3517 Consumer choice.—No provision of s. 627.351, s.
1615 627.3511, or s. 627.3515 shall be construed to impair the right
1616 of any insurance risk apportionment plan policyholder, upon
1617 receipt of any keep-out keepout or take-out offer, to retain his
1618 or her current agent, so long as that agent is duly licensed and
1619 appointed by the insurance risk apportionment plan or otherwise
1620 authorized to place business with the insurance risk
1621 apportionment plan. This right may shall not be canceled,
1622 suspended, impeded, abridged, or otherwise compromised by any
1623 rule, plan of operation, or depopulation plan, whether through
1624 keep-out keepout, take-out, midterm assumption, or any other
1625 means, of any insurance risk apportionment plan or depopulation
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1626 plan, including, but not limited to, those described in s.
1627 627.351, s. 627.3511, or s. 627.3515. The commission shall adopt
1628 any rules necessary to cause any insurance risk apportionment
1629 plan or market assistance plan under such sections to
1630 demonstrate that the operations of the plan do not interfere
1631 with, promote, or allow interference with the rights created
1632 under this section. If the policyholder's current agent is
1633 unable or unwilling to be appointed with the insurer making the
1634 take-out or keep-out keepout offer, the policyholder is shall
1635 not be disqualified from participation in the appropriate
1636 insurance risk apportionment plan because of an offer of
1637 coverage in the voluntary market. An offer of full property
1638 insurance coverage by the insurer currently insuring either the
1639 ex-wind or wind-only coverage on the policy to which the offer
1640 applies is shall not be considered a take-out or keep-out
1641 keepout offer. Any rule, plan of operation, or plan of
1642 depopulation, through keep-out keepout, take-out, midterm
1643 assumption, or any other means, of any property insurance risk
1644 apportionment plan under s. 627.351(2) or (6) is subject to ss.
1645 627.351(2)(b) and (6)(c) and 627.3511(4).
1646 Section 4. Section 627.3518, Florida Statutes, is amended
1647 to read:
1648 627.3518 Citizens Property Insurance Corporation
1649 policyholder eligibility clearinghouse program.—The purpose of
1650 this section is to provide a framework for the corporation to
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1651 implement a clearinghouse program by January 1, 2014.
1652 (1) As used in this section, the term:
1653 (a) "Corporation" means Citizens Property Insurance
1654 Corporation.
1655 (b) "Exclusive agent" means any licensed insurance agent
1656 that has, by contract, agreed to act exclusively for one company
1657 or group of affiliated insurance companies and is disallowed by
1658 the provisions of that contract to directly write for any other
1659 unaffiliated insurer absent express consent from the company or
1660 group of affiliated insurance companies.
1661 (c) "Independent agent" means any licensed insurance agent
1662 not described in paragraph (b).
1663 (d) "Program" means the clearinghouse created under this
1664 section.
1665 (2) In order to confirm eligibility with the corporation
1666 and to enhance access of new applicants for coverage and
1667 existing policyholders of the corporation to offers of covera ge
1668 from authorized insurers, the corporation shall establish a
1669 program for personal residential risks in order to facilitate
1670 the diversion of ineligible applicants and existing
1671 policyholders from the corporation into the voluntary insurance
1672 market. The corporation shall also develop appropriate
1673 procedures for facilitating the diversion of ineligible
1674 applicants and existing policyholders for commercial residential
1675 coverage into the private insurance market and shall report such
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1676 procedures to the President of the Senate and the Speaker of the
1677 House of Representatives by January 1, 2014.
1678 (3) The corporation board shall establish the
1679 clearinghouse program as an organizational unit within the
1680 corporation. The program shall have all the rights and
1681 responsibilities in carrying out its duties as a licensed
1682 general lines agent, but may not be required to employ or engage
1683 a licensed general lines agent or to maintain an insurance
1684 agency license to carry out its activities in the solicitation
1685 and placement of insurance coverage. In establishing the
1686 program, the corporation may:
1687 (a) Require all new applications, and all policies due for
1688 renewal, to be submitted for coverage to the program in order to
1689 facilitate obtaining an offer of coverage from an authorized
1690 insurer before binding or renewing coverage by the corporation.
1691 (b) Employ or otherwise contract with individuals or other
1692 entities for appropriate administrative or professional services
1693 to effectuate the plan within the corporation in accordance with
1694 the applicable purchasing requirements under s. 627.351.
1695 (c) Enter into contracts with any authorized insurer to
1696 participate in the program and accept an appointment by such
1697 insurer.
1698 (d) Provide funds to operate the program. Insurers and
1699 agents participating in the program are not required to pay a
1700 fee to offset or partially offset the cost of the program or use
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1701 the program for renewal of policies initially written through
1702 the clearinghouse.
1703 (e) Develop an enhanced application that includes
1704 information to assist private insurers in determining whether to
1705 make an offer of coverage through the program.
1706 (f) For personal lines residential risks, require, before
1707 approving all new applications for coverage by the corporation,
1708 that every application be subject to a period of 2 business days
1709 when any insurer participating in the program may select the
1710 application for coverage. The insurer may issue a binder on any
1711 policy selected for coverage for a period of at least 30 days
1712 but not more than 60 days.
1713 (4) Any authorized insurer may participate in the program;
1714 however, participation is not mandatory for any insurer.
1715 Insurers making offers of coverage to new applicants or renewal
1716 policyholders through the program:
1717 (a) May not be required to individually appoint any agent
1718 whose customer is underwritten and bound through the program.
1719 Notwithstanding s. 626.112, insurers are not required to appoint
1720 any agent on a policy underwritten through the program for as
1721 long as that policy remains with the insurer. Insurers may, a t
1722 their election, appoint any agent whose customer is initially
1723 underwritten and bound through the program. In the event an
1724 insurer accepts a policy from an agent who is not appointed
1725 pursuant to this paragraph, and thereafter elects to accept a
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1726 policy from such agent, the provisions of s. 626.112 requiring
1727 appointment apply to the agent.
1728 (b) Must enter into a limited agency agreement with each
1729 agent that is not appointed in accordance with paragraph (a) and
1730 whose customer is underwritten and bound through the program.
1731 (c) Must enter into its standard agency agreement with
1732 each agent whose customer is underwritten and bound through the
1733 program when that agent has been appointed by the insurer
1734 pursuant to s. 626.112.
1735 (d) Must comply with s. 627.4133(2).
1736 (e) May participate through their single-designated
1737 managing general agent or broker; however, the provisions of
1738 paragraph (6)(a) regarding ownership, control, and use of the
1739 expirations continue to apply.
1740 (f) Must pay to the producing agent a commission equal to
1741 that paid by the corporation or the usual and customary
1742 commission paid by the insurer for that line of business,
1743 whichever is greater.
1744 (5) Notwithstanding s. 627.3517, any applicant for new
1745 coverage from the corporation is not eligible for coverage from
1746 the corporation if provided an offer of coverage from an
1747 authorized insurer through the program at a premium that is at
1748 or below the eligibility threshold established in s.
1749 627.351(6)(c)5.a. Whenever an offer of coverage for a personal
1750 lines risk is received for a policyholder of the corporation at
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1751 renewal from an authorized insurer through the program, if the
1752 offer is equal to or less than the corporation's renewal premium
1753 for comparable coverage, the risk is not eligible for coverage
1754 with the corporation if the offer is at or below the eligibility
1755 threshold specified in s. 627.351(6)(c)5.a. In the event that an
1756 offer of coverage for a new applicant is received from an
1757 authorized insurer through the program, and the premium offered
1758 exceeds the eligibility threshold specified contained in s.
1759 627.351(6)(c)5.a., the applicant or insured may elect to accept
1760 such coverage, or may elect to accept or continue coverage with
1761 the corporation. In the event that an offer of coverage for a
1762 personal lines risk is received from an authorized insurer at
1763 renewal through the program, and the premium offered is at or
1764 below the eligibility threshold specified in s.
1765 627.351(6)(c)5.a. more than the corporation's renewal premium
1766 for comparable coverage, the insured is not eligible to may
1767 elect to accept such coverage, or may elect to accept or
1768 continue coverage with the corporation. Section
1769 627.351(6)(c)5.a.(I) does not apply to an offer of coverage from
1770 an authorized insurer obtained through the program. An applicant
1771 for coverage from the corporation who was declared ineligible
1772 for coverage at renewal by the corporation in the previous 36
1773 months due to an offer of coverage pursuant to this subsection
1774 shall be considered a renewal under this section if the
1775 corporation determines that the authorized insurer making the
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1776 offer of coverage pursuant to this subsection continues to
1777 insure the applicant and increased the rate on the policy in
1778 excess of the increase allowed for the corporation under s.
1779 627.351(6)(n)5.
1780 (6) Independent insurance agents submitting new
1781 applications for coverage or that are the agent of record on a
1782 renewal policy submitted to the program:
1783 (a) Are granted and must maintain ownership and the
1784 exclusive use of expirations, records, or other written or
1785 electronic information directly related to such applications or
1786 renewals written through the corporation or through an insurer
1787 participating in the program, notwithstanding s.
1788 627.351(6)(c)5.a.(I)(B) and (II)(B). Such ownership is granted
1789 for as long as the insured remains with the agency or until sold
1790 or surrendered in writing by the agent. Contracts with the
1791 corporation or required by the corporation must not amend,
1792 modify, interfere with, or limit such rights of ownership. Such
1793 expirations, records, or other written or electronic information
1794 may be used to review an application, issue a policy, or for any
1795 other purpose necessary for placing such business through the
1796 program.
1797 (b) May not be required to be appointed by any insurer
1798 participating in the program for policies written solely through
1799 the program, notwithstanding the provisions of s. 626.112.
1800 (c) May accept an appointment from any insurer
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1801 participating in the program.
1802 (d) May enter into either a standard or limited agency
1803 agreement with the insurer, at the insurer's option.
1804
1805 Applicants ineligible for coverage in accordance with subsection
1806 (5) remain ineligible if their independent agent is unwilling or
1807 unable to enter into a standard or limited agency agreement with
1808 an insurer participating in the program.
1809 (7) Exclusive agents submitting new applications for
1810 coverage or that are the agent of record on a renewal policy
1811 submitted to the program:
1812 (a) Must maintain ownership and the exclusive use of
1813 expirations, records, or other written or electronic information
1814 directly related to such applications or renewals written
1815 through the corporation or through an insurer participating in
1816 the program, notwithstanding s. 627.351(6)(c)5.a.(I)(B) and
1817 (II)(B). Contracts with the corporation or required by the
1818 corporation must not amend, modify, interfere with, or limit
1819 such rights of ownership. Such expirations, records, or other
1820 written or electronic information may be used to review an
1821 application, issue a policy, or for any other purpose necessary
1822 for placing such business through the program.
1823 (b) May not be required to be appointed by any insurer
1824 participating in the program for policies written solely through
1825 the program, notwithstanding the provisions of s. 626.112.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1307 2022
1826 (c) Must only facilitate the placement of an offer of
1827 coverage from an insurer whose limited servicing agreement is
1828 approved by that exclusive agent's exclusive insurer.
1829 (d) May enter into a limited servicing agreement with the
1830 insurer making an offer of coverage, and only after the
1831 exclusive agent's insurer has approved the limited servicing
1832 agreement terms. The exclusive agent's insurer must approve a
1833 limited service agreement for the program for any insurer for
1834 which it has approved a service agreement for other purposes.
1835
1836 Applicants ineligible for coverage in accordance with subsection
1837 (5) remain ineligible if their exclusive agent is unwilling or
1838 unable to enter into a standard or limited agency agreement with
1839 an insurer making an offer of coverage to that applicant.
1840 (8) Submission of an application for coverage by the
1841 corporation to the program does not constitute the binding of
1842 coverage by the corporation, and failure of the program to
1843 obtain an offer of coverage by an insurer may not be considered
1844 acceptance of coverage of the risk by the corporation.
1845 (9) The 45-day notice of nonrenewal requirement set forth
1846 in s. 627.4133(2)(b)5. applies when a policy is nonrenewed by
1847 the corporation because the risk has received an offer of
1848 coverage pursuant to this section which renders the risk
1849 ineligible for coverage by the corporation.
1850 (10) The program may not include commercial nonresidential
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1307 2022
1851 policies.
1852 (11) Proprietary business information provided to the
1853 corporation's clearinghouse by insurers with respect to
1854 identifying and selecting risks for an offer of coverage is
1855 confidential and exempt from s. 119.07(1) and s. 24(a), Art. I
1856 of the State Constitution.
1857 (a) As used in this subsection, the term "proprietary
1858 business information" means information, regardless of form or
1859 characteristics, which is owned or controlled by an insurer and:
1860 1. Is identified by the insurer as proprietary business
1861 information and is intended to be and is treated by the insurer
1862 as private in that the disclosure of the information would cause
1863 harm to the insurer, an individual, or the company's business
1864 operations and has not been disclosed unless disclosed pursuant
1865 to a statutory requirement, an order of a court or
1866 administrative body, or a private agreement that provides that
1867 the information will not be released to the public;
1868 2. Is not otherwise readily ascertainable or publicly
1869 available by proper means by other persons from another source
1870 in the same configuration as provided to the clearinghouse; and
1871 3. Includes:
1872 a. Trade secrets, as defined in s. 688.002.
1873 b. Information relating to competitive interests, the
1874 disclosure of which would impair the competitive business of the
1875 provider of the information.
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HB 1307 2022
1876
1877 Proprietary business information may be found in underwriting
1878 criteria or instructions which are used to identify and select
1879 risks through the program for an offer of coverage and are
1880 shared with the clearinghouse to facilitate the shopping of
1881 risks with the insurer.
1882 (b) The clearinghouse may disclose confidential and exempt
1883 proprietary business information:
1884 1. If the insurer to which it pertains gives prior written
1885 consent;
1886 2. Pursuant to a court order; or
1887 3. To another state agency in this or another state or to
1888 a federal agency if the recipient agrees in writing to maintain
1889 the confidential and exempt status of the document, material, or
1890 other information and has verified in writing its legal
1891 authority to maintain such confidentiality.
1892 Section 5. This act shall take effect July 1, 2022.
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INSURANCE & BANKING SUBCOMMITTEE
HB 1307 by Rep. Gregory
Citizens Property Insurance Corporation
AMENDMENT SUMMARY
February 2, 2022
Amendment 1 by Rep. Gregory (Line 763): The amendment makes the following changes to
the bill as filed:
• Phases in the percentage, by which an authorized insurer’s renewal offer for a Citizens’
policyholder may exceed Citizens’ premium and make a policyholder ineligible for
Citizens’ coverage, by 5% per year until it reaches 20% in 2026.
• Clarifies that a policy removed from Citizens under an assumption agreement may
remain on Citizens’ policy forms for the remainder of the assumption period so that
Citizens may continue to provide service to the policyholder for the claims that are
payable by the assuming insurer.
Amendment 2 by Rep. Gregory (940): The amendment changes existing statutory language
regarding Citizens’ purchase of reinsurance so that Citizens is no longer able to include the cost
of reinsurance in its rate calculations if it does not purchase reinsurance.
Amendment 3 by Rep. Gregory (1597): The amendment makes the following changes to the
bill as filed:
• Phases in the percentage, by which an authorized insurer’s take-out offer may exceed
Citizens’ premium and make a policyholder ineligible for Citizens’ coverage, by 5% per
year until it reaches 20% in 2026.
• Eliminates language that creates a 36-month exception where a policyholder whose
policy has been taken-out of Citizens can still be considered a renewal if the authorized
insurer that took the policy raises the policyholder’s rates.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1307 (2022)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Gregory offered the following:
4
5 Amendment
6 Remove lines 763-839 and insert:
7 insurer is more than the following percent greater than the
8 renewal premium for comparable coverage from the corporation:
9 (I) Five percent for policies that renew during 2023.
10 (II) Ten percent for policies that renew during 2024.
11 (III) Fifteen percent for policies that renew during 2025.
12 (IV) Twenty percent for polices that renew during 2026 and
13 during all subsequent years.
14 If the risk is not able to obtain such offer, the risk is
15 eligible for a standard policy including wind coverage or a
16 basic policy including wind coverage issued by the corporation;
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1307 (2022)
Amendment No. 1
17 however, if the risk could not be insured under a standard
18 policy including wind coverage regardless of market conditions,
19 the risk is eligible for a basic policy including wind coverage
20 unless rejected under subparagraph 8. However, a policyholder
21 removed from the corporation through an assumption agreement
22 remains eligible for coverage from the corporation until the end
23 of the assumption period. The corporation shall determine the
24 type of policy to be provided on the basis of objective
25 standards specified in the underwriting manual and based on
26 generally accepted underwriting practices. A policyholder
27 removed from the corporation through an assumption agreement
28 does not remain eligible for coverage from the corporation.
29 However, any policy removed from the corporation through an
30 assumption agreement may remain on the corporation's policy
31 forms through the end of the assumption period so that
32 corporation may continue to provide service to the policyholder
33 for the claims that are payable by the assuming insurer.
34
35 (v)(I) If the risk accepts an offer of coverage through
36 the market assistance plan or through a mechanism established by
37 the corporation other than a plan established by s. 627.3518,
38 before a policy is issued to the risk by the corporation or
39 during the first 30 days of coverage by the corporation, and the
40 producing agent who submitted the application to the plan or to
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1307 (2022)
Amendment No. 1
41 the corporation is not currently appointed by the insurer, the
42 insurer shall:
43 (A) Pay to the producing agent of record of the policy for
44 the first year, an amount that is the greater of the insurer's
45 usual and customary commission for the type of policy written or
46 a fee equal to the usual and customary commission of the
47 corporation; or
48 (B) Offer to allow the producing agent of record of the
49 policy to continue servicing the policy for at least 1 year and
50 offer to pay the agent the greater of the insurer's or the
51 corporation's usual and customary commission for the type of
52 policy written.
53
54 If the producing agent is unwilling or unable to accept
55 appointment, the new insurer shall pay the agent in accordance
56 with sub-sub-sub-subparagraph (A).
57 (II) If the corporation enters into a contractual
58 agreement for a take-out plan, the producing agent of record of
59 the corporation policy is entitled to retain any unearned
60 commission on the policy, and the insurer shall:
61 (A) Pay to the producing agent of record, for the first
62 year, an amount that is the greater of the insurer's usual and
63 customary commission for the type of policy written or a fee
64 equal to the usual and customary commission of the corporation;
65 or
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1307 (2022)
Amendment No. 1
66 (B) Offer to allow the producing agent of record to
67 continue servicing the policy for at least 1 year and offer to
68 pay the agent the greater of the insurer's or the corporation's
69 usual and customary commission for the type of policy written.
70
71 If the producing agent is unwilling or unable to accept
72 appointment, the new insurer shall pay the agent in accordance
73 with sub-sub-sub-subparagraph (A).
74 b. With respect to commercial lines residential risks, for
75 a new application to the corporation for coverage, if the risk
76 is offered coverage under a policy including wind coverage from
77 an authorized insurer at its approved rate, the risk is not
78 eligible for a policy issued by the corporation unless the
79 premium for coverage from the authorized insurer is more than 20
80 15 percent greater than the premium for comparable coverage from
81 the corporation. Whenever an offer of coverage for a commercial
82 lines residential risk is received for a policyholder of the
83 corporation at renewal from an authorized insurer, if the offer
84 is equal to or less than the corporation's renewal premium for
85 comparable coverage, the risk is not eligible for coverage with
86 the corporation unless the premium for coverage from the
87 authorized insurer is more than the following percent greater
88 than the renewal premium for comparable coverage from the
89 corporation:
90 (I) Five percent for policies that renew during 2023.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1307 (2022)
Amendment No. 1
91 (II) Ten percent for policies that renew during 2024.
92 (III) Fifteen percent for policies that renew during 2025.
93 (IV) Twenty percent for policies that renew during 2026 and
94 during all subsequent years.
95 If the risk is not able to obtain any such offer, the risk is
96 eligible for a policy including wind coverage issued by the
97 corporation. However, A policyholder removed from the
98 corporation through an assumption agreement does not remain
99 remains eligible for coverage from the corporation until the end
100 of the assumption period. However, any policy removed from the
101 corporation through an assumption agreement may remain on the
102 corporation's policy forms through the end of the assumption
103 period so that corporation may continue to provide service to
104 the policyholder for the claims that are payable by the assuming
105 insurer.
106
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1307 (2022)
Amendment No. 2
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Gregory offered the following:
4
5 Amendment (with title amendment)
6 Remove lines 940-945 and insert:
7 the board of governors.
8
9 -----------------------------------------------------
10 T I T L E A M E N D M E N T
11 Remove line 19 and insert:
12 making technical changes; eliminating costs of reinsurance in
13 rates under certain circumstances; specifying the
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1307 (2022)
Amendment No. 3
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Gregory offered the following:
4
5 Amendment (with title amendment)
6 Remove lines 1597-1779 and insert:
7 3. If a policyholder receives a take-out offer from an
8 authorized insurer, the risk is no longer eligible for coverage
9 with the corporation unless the premium for coverage from the
10 authorized insurer is more than the following percent gr eater
11 than the renewal premium for comparable coverage from the
12 corporation:
13 (I) Five percent for policies effective on or after January
14 1, 2023.
15 (II) Ten percent for policies effective on or after January
16 1, 2024.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1307 (2022)
Amendment No. 3
17 (III) Fifteen percent for policies effective on or after
18 January 1, 2025.
19 (IV) Twenty percent for policies effective on or after
20 January 1, 2026 and in all subsequent years.
21 43. The corporation must provide written notice to the
22 policyholder and the agent of record regarding all insurers
23 requesting to take out the policy, which and regarding the
24 policyholder's option to accept a take-out offer or to reject
25 all take-out offers and to remain with the corporation. The
26 notice must be in a format prescribed by the corporation and
27 include, for each take-out offer:
28 a. The amount of the estimated premium;
29 b. A description of the coverage; and
30 c. A comparison of the estimated premium and coverage
31 offered by the insurer to the estimated premium and coverage
32 provided by the corporation.
33 Section 3. Section 627.3517, Florida Statutes, is amended
34 to read:
35 627.3517 Consumer choice.—No provision of s. 627.351, s.
36 627.3511, or s. 627.3515 shall be construed to impair the right
37 of any insurance risk apportionment plan policyholder, upon
38 receipt of any keep-out keepout or take-out offer, to retain his
39 or her current agent, so long as that agent is duly licensed and
40 appointed by the insurance risk apportionment plan or otherwise
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1307 (2022)
Amendment No. 3
41 authorized to place business with the insurance risk
42 apportionment plan. This right may shall not be canceled,
43 suspended, impeded, abridged, or otherwise compromised by any
44 rule, plan of operation, or depopulation plan, whether through
45 keep-out keepout, take-out, midterm assumption, or any other
46 means, of any insurance risk apportionment plan or depopulation
47 plan, including, but not limited to, those described in s.
48 627.351, s. 627.3511, or s. 627.3515. The commission shall adopt
49 any rules necessary to cause any insurance risk apportionment
50 plan or market assistance plan under such sections to
51 demonstrate that the operations of the plan do not interfere
52 with, promote, or allow interference with the rights created
53 under this section. If the policyholder's current agent is
54 unable or unwilling to be appointed with the insurer making the
55 take-out or keep-out keepout offer, the policyholder is shall
56 not be disqualified from participation in the appropriate
57 insurance risk apportionment plan because of an offer of
58 coverage in the voluntary market. An offer of full property
59 insurance coverage by the insurer currently insuring either the
60 ex-wind or wind-only coverage on the policy to which the offer
61 applies is shall not be considered a take-out or keep-out
62 keepout offer. Any rule, plan of operation, or plan of
63 depopulation, through keep-out keepout, take-out, midterm
64 assumption, or any other means, of any property insurance risk
65 apportionment plan under s. 627.351(2) or (6) is subject to ss.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1307 (2022)
Amendment No. 3
66 627.351(2)(b) and (6)(c) and 627.3511(4).
67 Section 4. Section 627.3518, Florida Statutes, is amended
68 to read:
69 627.3518 Citizens Property Insurance Corporation
70 policyholder eligibility clearinghouse program.—The purpose of
71 this section is to provide a framework for the corporation to
72 implement a clearinghouse program by January 1, 2014.
73 (1) As used in this section, the term:
74 (a) "Corporation" means Citizens Property Insurance
75 Corporation.
76 (b) "Exclusive agent" means any licensed insurance agent
77 that has, by contract, agreed to act exclusively for one company
78 or group of affiliated insurance companies and is disallowed by
79 the provisions of that contract to directly write for any other
80 unaffiliated insurer absent express consent from the company or
81 group of affiliated insurance companies.
82 (c) "Independent agent" means any licensed insurance agent
83 not described in paragraph (b).
84 (d) "Program" means the clearinghouse created under this
85 section.
86 (2) In order to confirm eligibility with the corporation
87 and to enhance access of new applicants for coverage and
88 existing policyholders of the corporation to offers of coverage
89 from authorized insurers, the corporation shall est ablish a
90 program for personal residential risks in order to facilitate
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1307 (2022)
Amendment No. 3
91 the diversion of ineligible applicants and existing
92 policyholders from the corporation into the voluntary insurance
93 market. The corporation shall also develop appropriate
94 procedures for facilitating the diversion of ineligible
95 applicants and existing policyholders for commercial residential
96 coverage into the private insurance market and shall report such
97 procedures to the President of the Senate and the Speaker of the
98 House of Representatives by January 1, 2014.
99 (3) The corporation board shall establish the
100 clearinghouse program as an organizational unit within the
101 corporation. The program shall have all the rights and
102 responsibilities in carrying out its duties as a licensed
103 general lines agent, but may not be required to employ or engage
104 a licensed general lines agent or to maintain an insurance
105 agency license to carry out its activities in the solicitation
106 and placement of insurance coverage. In establishing the
107 program, the corporation may:
108 (a) Require all new applications, and all policies due for
109 renewal, to be submitted for coverage to the program in order to
110 facilitate obtaining an offer of coverage from an authorized
111 insurer before binding or renewing coverage by the corporatio n.
112 (b) Employ or otherwise contract with individuals or other
113 entities for appropriate administrative or professional services
114 to effectuate the plan within the corporation in accordance with
115 the applicable purchasing requirements under s. 627.351.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1307 (2022)
Amendment No. 3
116 (c) Enter into contracts with any authorized insurer to
117 participate in the program and accept an appointment by such
118 insurer.
119 (d) Provide funds to operate the program. Insurers and
120 agents participating in the program are not required to pay a
121 fee to offset or partially offset the cost of the program or use
122 the program for renewal of policies initially written through
123 the clearinghouse.
124 (e) Develop an enhanced application that includes
125 information to assist private insurers in determining whether to
126 make an offer of coverage through the program.
127 (f) For personal lines residential risks, require, before
128 approving all new applications for coverage by the corporation,
129 that every application be subject to a period of 2 business days
130 when any insurer participating in the program may select the
131 application for coverage. The insurer may issue a binder on any
132 policy selected for coverage for a period of at least 30 days
133 but not more than 60 days.
134 (4) Any authorized insurer may participate in the program;
135 however, participation is not mandatory for any insurer.
136 Insurers making offers of coverage to new applicants or renewal
137 policyholders through the program:
138 (a) May not be required to individually appoint any agent
139 whose customer is underwritten and bound through the program.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1307 (2022)
Amendment No. 3
140 Notwithstanding s. 626.112, insurers are not required to appoint
141 any agent on a policy underwritten through the program for as
142 long as that policy remains with the insurer. Insurers may, at
143 their election, appoint any agent whose customer is initially
144 underwritten and bound through the program. In the event an
145 insurer accepts a policy from an agent who is not appointed
146 pursuant to this paragraph, and thereafter elects to accept a
147 policy from such agent, the provisions of s. 626.112 requiring
148 appointment apply to the agent.
149 (b) Must enter into a limited agency agreement with each
150 agent that is not appointed in accordance with paragraph (a) and
151 whose customer is underwritten and bound through the program.
152 (c) Must enter into its standard agency agreement with
153 each agent whose customer is underwritten and bound through the
154 program when that agent has been appointed by the insurer
155 pursuant to s. 626.112.
156 (d) Must comply with s. 627.4133(2).
157 (e) May participate through their single-designated
158 managing general agent or broker; however, the provisions of
159 paragraph (6)(a) regarding ownership, control, and use of the
160 expirations continue to apply.
161 (f) Must pay to the producing agent a commission equal to
162 that paid by the corporation or the usual and customary
163 commission paid by the insurer for that line of business,
164 whichever is greater.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1307 (2022)
Amendment No. 3
165 (5) Notwithstanding s. 627.3517, any applicant for new
166 coverage from the corporation is not eligible for coverage from
167 the corporation if provided an offer of coverage from an
168 authorized insurer through the program at a premium that is at
169 or below the eligibility threshold established in s.
170 627.351(6)(c)5.a. Whenever an offer of coverage for a personal
171 lines risk is received for a policyholder of the corporation at
172 renewal from an authorized insurer through the program, if the
173 offer is equal to or less than the corporation's renewal premium
174 for comparable coverage, the risk is not eligible for coverage
175 with the corporation if the offer is at or below the eligibility
176 threshold specified in s. 627.351(6)(c)5.a. In the event that an
177 offer of coverage for a new applicant is received from an
178 authorized insurer through the program, and the premium offered
179 exceeds the eligibility threshold specified contained in s.
180 627.351(6)(c)5.a., the applicant or insured may elect to accept
181 such coverage, or may elect to accept or continue coverage with
182 the corporation. In the event that an offer of coverage for a
183 personal lines risk is received from an authorized insurer at
184 renewal through the program, and the premium offered is at or
185 below the eligibility threshold specified in s.
186 627.351(6)(c)5.a. more than the corporation's renewal premium
187 for comparable coverage, the insured is not eligible to may
188 elect to accept such coverage, or may elect to accept or
189 continue coverage with the corporation. Section
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1307 (2022)
Amendment No. 3
190 627.351(6)(c)5.a.(I) does not apply to an offer of coverage from
191 an authorized insurer obtained through the program. An applicant
192 for coverage from the corporation who was declared ineligible
193 for coverage at renewal by the corporation in the previous 36
194 months due to an offer of coverage pursuant to this subsection
195 shall be considered a renewal under this section if the
196 corporation determines that the authorized insurer making the
197 offer of coverage pursuant to this subsection continues to
198 insure the applicant and increased the rate on the policy in
199 excess of the increase allowed for the corporation under s.
200 627.351(6)(n)5.
201
202
203 -----------------------------------------------------
204 T I T L E A M E N D M E N T
205 Remove lines 39-47 and insert:
206 record status; making technical changes; revising eligibility
207 for the corporation when insurers request to take out a policy;
208 revising the notice that must be provided by the corporati on
209 when insurers request to take out a policy; amending s.
210 627.3517, F.S.; making technical changes; amending s. 627.3518,
211 F.S.; deleting obsolete provisions relating to the purpose of
212 the corporation's clearinghouse program and reporting
213 requirements; revising procedures for determining eligibility of
214 a risk for coverage with the corporation; revising renewal
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1307 (2022)
Amendment No. 3
215 status after insurers request to take out a policy; providing an
216 effective
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