PCS for HB 1503 (2024): An act relating to Citizens Property Insurance Corporation
Summary
Proposed committee substitute PCS for HB 1503, marked ORIGINAL (2024), a bill to be entitled An act relating to Citizens Property Insurance Corporation. Its title says it amends section 627.351, Florida Statutes, removing obsolete language, raising the dwelling replacement cost of properties eligible for coverage by the corporation under certain circumstances, and requiring quota share primary insurance in certain policies. It removes provisions on surcharges and emergency assessments upon determination of projected deficits. It also revises eligibility for commercial lines residential risks coverage. Except for one section effective upon becoming a law, the act takes effect July 1.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“PCS for HB 1503 (2024): An act relating to Citizens Property Insurance Corporation.”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2024-3228-insurance-banking-subcommittee-proposed-committee-bills-pcbs-b1ffac81be/
, SHA-256 a3d6aee36a06f3023cf3b9512192bb6ce25ac68f0342ffc21c80cc508334d1fc.Full text
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
PCS for HB 1503 ORIGINAL 2024
1 A bill to be entitled
2
3 An act relating to Citizens Property Insurance
4 Corporation; amending s. 627.351, F.S.; removing
5 obsolete language; providing that certain accounts for
6 Citizens Property Insurance Corporation revenues,
7 assets, liability, losses, and expenses are now
8 maintained as the Citizens account; revising the
9 requirements for certain coverages by the corporation;
10 raising the dwelling replacement cost of properties
11 eligible for coverage by the corporation under certain
12 circumstances; requiring the inclusion of quota share
13 primary insurance in certain policies; removing
14 provisions relating to legislative goals; conforming
15 provisions to changes made by the act; revising the
16 definition of the term "assessments"; removing
17 provisions relating to surcharges and emergency
18 assessments upon determination of projected deficits;
19 removing provisions relating to funds available to the
20 corporation as sources of revenue and bonds; removing
21 definitions; removing provisions relating to the
22 duties of the Florida Surplus Lines Service Office ;
23 removing provisions relating to disposition of excess
24 amounts of assessments and surcharges; providing
25 definitions; providing nonapplicability of certain
Page 1 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
26 provisions relating to personal lines residential
27 risks coverage by the corporation; requiring insur ers
28 to pay, under certain circumstances, producing agents
29 a certain amount or fee if the agents are unable to
30 accept appointment due to failure to be licensed as
31 surplus lines agents; providing nonapplicability of
32 such payment requirement; revising eligibility for
33 commercial lines residential risks coverage by the
34 corporation; providing that commercial lines
35 residential risks are not eligible for coverage by the
36 corporation under certain circumstances; providing
37 that comparisons of comparable coverages under certain
38 personal lines residential risks and commercial lines
39 residential risks do not apply to policies that do not
40 cover primary residences; revising the corporation's
41 plan of operation; revising the required statements
42 from applicants for coverage; revising the duties of
43 the executive director of the corporation; authorizing
44 the executive director to assign and appoint
45 designees; removing a nonapplicability provision
46 relating to bond requirements; authorizing assessed
47 insureds of certain insurers to be relieved from
48 assessments under certain circumstances; removing
49 provisions relating to certain insurer assessment
50 deferments; removing provisions relating to the
Page 2 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
51 intangibles of and coverage by the Florida Windstorm
52 Underwriting Association and the corporation coastal
53 account; authorizing the corporation and certain
54 persons to make specified information obtained from
55 underwriting files and confidential claims files
56 available to licensed surplus lines agents;
57 prohibiting such agents from using such information
58 for specified purposes; providing nonapplicability of
59 provisions relating to take-out offers that are part
60 of applications to participate in depopulation;
61 authorizing the corporation to share its claims data
62 with a specified entity; amending s. 627.3511, F.S.;
63 conforming provisions to changes made by the act;
64 conforming cross-references; amending s. 627.3518,
65 F.S.; providing nonapplicability of provisions
66 relating to noneligibility for coverage by the
67 corporation; revising the flood coverage requirements
68 for personal lines residential policyholders;
69 providing effective dates.
70
71
72 Be It Enacted by the Legislature of the State of Florida:
73 Section 1. Subsection (7) of section 627.351, Florida
74 Statutes, is renumbered as subsection (8), paragraph (b) of
75 subsection (2) and subsection (6) are amended, and a new
Page 3 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
76 subsection (7) is added to that section, to read:
77 627.351 Insurance risk apportionment plans.—
78 (2) WINDSTORM INSURANCE RISK APPORTIONMENT.—
79 (b) The department shall require all insurers holding a
80 certificate of authority to transact property insurance on a
81 direct basis in this state, other than joint underwriting
82 associations and other entities formed pursuant to this section,
83 to provide windstorm coverage to applicants from areas
84 determined to be eligible pursuant to paragraph (c) who in good
85 faith are entitled to, but are unable to procure, such coverage
86 through ordinary means; or it shall adopt a reasonable plan or
87 plans for the equitable apportionment or sharing among such
88 insurers of windstorm coverage, which may include formation of
89 an association for this purpose. As used in this subsection, the
90 term "property insurance" means insurance on real or personal
91 property, as defined in s. 624.604, including insurance for
92 fire, industrial fire, allied lines, farmowners multiperil,
93 homeowners multiperil, commercial multiperil, and mobile homes,
94 and including liability coverages on all such insurance, but
95 excluding inland marine as defined in s. 624.607(3) and
96 excluding vehicle insurance as defined in s. 624.605(1)(a) other
97 than insurance on mobile homes used as permanent dwellings. The
98 department shall adopt rules that provide a formula for the
99 recovery and repayment of any deferred assessments.
100 1. For the purpose of this section, properties eligible
Page 4 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
101 for such windstorm coverage are defined as dwellings, buildings,
102 and other structures, including mobile homes which are used as
103 dwellings and which are tied down in compliance with mobile home
104 tie-down requirements prescribed by the Department of Highwa y
105 Safety and Motor Vehicles pursuant to s. 320.8325, and the
106 contents of all such properties. An applicant or policyholder is
107 eligible for coverage only if an offer of coverage cannot be
108 obtained by or for the applicant or policyholder from an
109 admitted insurer at approved rates.
110 2.a.(I) All insurers required to be members of such
111 association shall participate in its writings, expenses, and
112 losses. Surplus of the association shall be retained for the
113 payment of claims and shall not be distributed to the me mber
114 insurers. Such participation by member insurers shall be in the
115 proportion that the net direct premiums of each member insurer
116 written for property insurance in this state during the
117 preceding calendar year bear to the aggregate net direct
118 premiums for property insurance of all member insurers, as
119 reduced by any credits for voluntary writings, in this state
120 during the preceding calendar year. For the purposes of this
121 subsection, the term "net direct premiums" means direct written
122 premiums for property insurance, reduced by premium for
123 liability coverage and for the following if included in allied
124 lines: rain and hail on growing crops; livestock; association
125 direct premiums booked; National Flood Insurance Program direct
Page 5 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
126 premiums; and similar deductions specifically authorized by the
127 plan of operation and approved by the department. A member's
128 participation shall begin on the first day of the calendar year
129 following the year in which it is issued a certificate of
130 authority to transact property insurance in the state and shall
131 terminate 1 year after the end of the calendar year during which
132 it no longer holds a certificate of authority to transact
133 property insurance in the state. The commissioner, after review
134 of annual statements, other reports, and any other statistics
135 that the commissioner deems necessary, shall certify to the
136 association the aggregate direct premiums written for property
137 insurance in this state by all member insurers.
138 (II) Effective July 1, 2002, the association shall operate
139 subject to the supervision and approval of a board of governors
140 who are the same individuals that have been appointed by the
141 Treasurer to serve on the board of governors of the Citizens
142 Property Insurance Corporation.
143 (III) The plan of operation shall provide a formula
144 whereby a company voluntarily providing windstorm coverage in
145 affected areas will be relieved wholly or partially from
146 apportionment of a regular assessment pursuant to sub -sub-
147 subparagraph d.(I) or sub-sub-subparagraph d.(II).
148 (IV) A company which is a member of a group of companies
149 under common management may elect to have its credits applied on
150 a group basis, and any company or group may elect to have its
Page 6 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
151 credits applied to any other company or group.
152 (V) There shall be no credits or relief from apportionment
153 to a company for emergency assessments collected from its
154 policyholders under sub-sub-subparagraph d.(III).
155 (VI) The plan of operation may also provide for the award
156 of credits, for a period not to exceed 3 years, from a regular
157 assessment pursuant to sub-sub-subparagraph d.(I) or sub-sub-
158 subparagraph d.(II) as an incentive for taking policies out of
159 the Residential Property and Casualty Joint Underwriting
160 Association. In order to qualify for the exemption under this
161 sub-sub-subparagraph, the take-out plan must provide that at
162 least 40 percent of the policies removed from the Residential
163 Property and Casualty Joint Underwriting Association cover risks
164 located in Miami-Dade, Broward, and Palm Beach Counties or at
165 least 30 percent of the policies so removed cover risks located
166 in Miami-Dade, Broward, and Palm Beach Counties and an
167 additional 50 percent of the policies so removed cover risks
168 located in other coastal counties, and must also provide that no
169 more than 15 percent of the policies so removed may exclude
170 windstorm coverage. With the approval of the department, the
171 association may waive these geographic criteria for a take -out
172 plan that removes at least the lesser of 100,000 Residential
173 Property and Casualty Joint Underwriting Association policies or
174 15 percent of the total number of Residential Property and
175 Casualty Joint Underwriting Association policies, provided the
Page 7 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
176 governing board of the Residential Property and Casualty Joint
177 Underwriting Association certifies that the take-out plan will
178 materially reduce the Residential Property and Casualty Joint
179 Underwriting Association's 100-year probable maximum loss from
180 hurricanes. With the approval of the department, the board may
181 extend such credits for an additional year if the insurer
182 guarantees an additional year of renewability for all policies
183 removed from the Residential Property and Casualty Joint
184 Underwriting Association, or for 2 additional years if the
185 insurer guarantees 2 additional years of renewability for all
186 policies removed from the Residential Property and Casualty
187 Joint Underwriting Association.
188 b. Assessments to pay deficits in the association under
189 this subparagraph shall be included as an appropriate factor in
190 the making of rates as provided in s. 627.3512.
191 c. The Legislature finds that the potential for unlimited
192 deficit assessments under this subparagraph may induce insurers
193 to attempt to reduce their writings in the voluntary market, and
194 that such actions would worsen the availability problems that
195 the association was created to remedy. It is the intent of the
196 Legislature that insurers remain fully responsible for paying
197 regular assessments and collecting emergency assessments for any
198 deficits of the association; however, it is also the intent of
199 the Legislature to provide a means by which assessment
200 liabilities may be amortized over a period of years.
Page 8 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
201 d.(I) When the deficit incurred in a particular calendar
202 year is 10 percent or less of the aggregate statewide direct
203 written premium for property insurance for the prior calendar
204 year for all member insurers, the association shall levy an
205 assessment on member insurers in an amount equal to the deficit.
206 (II) When the deficit incurred in a particular calendar
207 year exceeds 10 percent of the aggregate statewide direc t
208 written premium for property insurance for the prior calendar
209 year for all member insurers, the association shall levy an
210 assessment on member insurers in an amount equal to the greater
211 of 10 percent of the deficit or 10 percent of the aggregate
212 statewide direct written premium for property insurance for the
213 prior calendar year for member insurers. Any remaining deficit
214 shall be recovered through emergency assessments under sub -sub-
215 subparagraph (III).
216 (III) Upon a determination by the board of directors that
217 a deficit exceeds the amount that will be recovered through
218 regular assessments on member insurers, pursuant to sub -sub-
219 subparagraph (I) or sub-sub-subparagraph (II), the board shall
220 levy, after verification by the department, emergency
221 assessments to be collected by member insurers and by
222 underwriting associations created pursuant to this section which
223 write property insurance, upon issuance or renewal of property
224 insurance policies other than National Flood Insurance policies
225 in the year or years following levy of the regular assessments.
Page 9 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
226 The amount of the emergency assessment collected in a particular
227 year shall be a uniform percentage of that year's direct written
228 premium for property insurance for all member insurers and
229 underwriting associations, excluding National Flood Insurance
230 policy premiums, as annually determined by the board and
231 verified by the department. The department shall verify the
232 arithmetic calculations involved in the board's determination
233 within 30 days after receipt of the information on which the
234 determination was based. Notwithstanding any other provision of
235 law, each member insurer and each underwriting association
236 created pursuant to this section shall collect emergency
237 assessments from its policyholders without such obligati on being
238 affected by any credit, limitation, exemption, or deferment. The
239 emergency assessments so collected shall be transferred directly
240 to the association on a periodic basis as determined by the
241 association. The aggregate amount of emergency assessments
242 levied under this sub-sub-subparagraph in any calendar year may
243 not exceed the greater of 10 percent of the amount needed to
244 cover the original deficit, plus interest, fees, commissions,
245 required reserves, and other costs associated with financing of
246 the original deficit, or 10 percent of the aggregate statewide
247 direct written premium for property insurance written by member
248 insurers and underwriting associations for the prior year, plus
249 interest, fees, commissions, required reserves, and other costs
250 associated with financing the original deficit. The board may
Page 10 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
251 pledge the proceeds of the emergency assessments under this sub -
252 sub-subparagraph as the source of revenue for bonds, to retire
253 any other debt incurred as a result of the deficit or events
254 giving rise to the deficit, or in any other way that the board
255 determines will efficiently recover the deficit. The emergency
256 assessments under this sub-sub-subparagraph shall continue as
257 long as any bonds issued or other indebtedness incurred with
258 respect to a deficit for which the assessment was imposed remain
259 outstanding, unless adequate provision has been made for the
260 payment of such bonds or other indebtedness pursuant to the
261 document governing such bonds or other indebtedness. Emergency
262 assessments collected under this sub-sub-subparagraph are not
263 part of an insurer's rates, are not premium, and are not subject
264 to premium tax, fees, or commissions; however, failure to pay
265 the emergency assessment shall be treated as failure to pay
266 premium.
267 (IV) Each member insurer's share of the total regular
268 assessments under sub-sub-subparagraph (I) or sub-sub-
269 subparagraph (II) shall be in the proportion that the insurer's
270 net direct premium for property insurance in this state, for the
271 year preceding the assessment bears to the aggregate statewide
272 net direct premium for property insurance of all member
273 insurers, as reduced by any credits for voluntary writings for
274 that year.
275 (V) If regular deficit assessments are made under sub-sub-
Page 11 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
276 subparagraph (I) or sub-sub-subparagraph (II), or by the
277 Residential Property and Casualty Joint Underwriting Association
278 under sub-subparagraph (6)(b)3.a., the association shall levy
279 upon the association's policyholders, as part of its next rate
280 filing, or by a separate rate filing solely for thi s purpose, a
281 market equalization surcharge in a percentage equal to the total
282 amount of such regular assessments divided by the aggregate
283 statewide direct written premium for property insurance for
284 member insurers for the prior calendar year. Market equali zation
285 surcharges under this sub-sub-subparagraph are not considered
286 premium and are not subject to commissions, fees, or premium
287 taxes; however, failure to pay a market equalization surcharge
288 shall be treated as failure to pay premium.
289 e. The governing body of any unit of local government, any
290 residents of which are insured under the plan, may issue bonds
291 as defined in s. 125.013 or s. 166.101 to fund an assistance
292 program, in conjunction with the association, for the purpose of
293 defraying deficits of the association. In order to avoid
294 needless and indiscriminate proliferation, duplication, and
295 fragmentation of such assistance programs, any unit of local
296 government, any residents of which are insured by the
297 association, may provide for the payment of losses, regardless
298 of whether or not the losses occurred within or outside of the
299 territorial jurisdiction of the local government. Revenue bonds
300 may not be issued until validated pursuant to chapter 75, unless
Page 12 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
301 a state of emergency is declared by executive order or
302 proclamation of the Governor pursuant to s. 252.36 making such
303 findings as are necessary to determine that it is in the best
304 interests of, and necessary for, the protection of the public
305 health, safety, and general welfare of residents of this state
306 and the protection and preservation of the economic stability of
307 insurers operating in this state, and declaring it an essential
308 public purpose to permit certain municipalities or counties to
309 issue bonds as will provide relief to claimants and
310 policyholders of the association and insurers responsible for
311 apportionment of plan losses. Any such unit of local government
312 may enter into such contracts with the association and with any
313 other entity created pursuant to this subsection as are
314 necessary to carry out this paragraph. Any bonds issued under
315 this sub-subparagraph shall be payable from and secured by
316 moneys received by the association from assessments under this
317 subparagraph, and assigned and pledged to or on behalf of the
318 unit of local government for the benefit of the holders of such
319 bonds. The funds, credit, property, and taxing power of the
320 state or of the unit of local government shall not be pledged
321 for the payment of such bonds. If any of the bonds remain unsold
322 60 days after issuance, the department shall require all
323 insurers subject to assessment to purchase the bonds, which
324 shall be treated as admitted assets; each insurer shall be
325 required to purchase that percentage of the unsold portion of
Page 13 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
326 the bond issue that equals the insurer's relative share of
327 assessment liability under this subsection. An insurer shall not
328 be required to purchase the bonds to the extent that the
329 department determines that the purchase would endanger or impair
330 the solvency of the insurer. The authority granted by this sub-
331 subparagraph is additional to any bonding authority granted by
332 subparagraph 6.
333 3. The plan shall also provide that any member with a
334 surplus as to policyholders of $25 million or less writing 25
335 percent or more of its total countrywide property insurance
336 premiums in this state may petition the department, within the
337 first 90 days of each calendar year, to qualify as a limited
338 apportionment company. The apportionment of such a member
339 company in any calendar year for which it is qualified shall not
340 exceed its gross participation, which shall not be affected by
341 the formula for voluntary writings. In no event shall a limited
342 apportionment company be required to participate in any
343 apportionment of losses pursuant to sub-sub-subparagraph 2.d.(I)
344 or sub-sub-subparagraph 2.d.(II) in the aggregate which exceeds
345 $50 million after payment of available plan funds in any
346 calendar year. However, a limited apportionment company shall
347 collect from its policyholders any emergency assessment imposed
348 under sub-sub-subparagraph 2.d.(III). The plan shall provide
349 that, if the department determines that any regular assessment
350 will result in an impairment of the surplus of a limited
Page 14 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
351 apportionment company, the department may direct that all or
352 part of such assessment be deferred. However, there shall be no
353 limitation or deferment of an emergency assessment to be
354 collected from policyholders under sub-sub-subparagraph
355 2.d.(III).
356 4. The plan shall provide for the deferment, in whole or
357 in part, of a regular assessment of a member insure r under sub-
358 sub-subparagraph 2.d.(I) or sub-sub-subparagraph 2.d.(II), but
359 not for an emergency assessment collected from policyholders
360 under sub-sub-subparagraph 2.d.(III), if, in the opinion of the
361 commissioner, payment of such regular assessment would e ndanger
362 or impair the solvency of the member insurer. In the event a
363 regular assessment against a member insurer is deferred in whole
364 or in part, the amount by which such assessment is deferred may
365 be assessed against the other member insurers in a manner
366 consistent with the basis for assessments set forth in sub -sub-
367 subparagraph 2.d.(I) or sub-sub-subparagraph 2.d.(II).
368 5.a. The plan of operation may include deductibles and
369 rules for classification of risks and rate modifications
370 consistent with the objective of providing and maintaining funds
371 sufficient to pay catastrophe losses.
372 b. It is the intent of the Legislature that the rates for
373 coverage provided by the association be actuarially sound and
374 not competitive with approved rates charged in the admi tted
375 voluntary market such that the association functions as a
Page 15 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
376 residual market mechanism to provide insurance only when the
377 insurance cannot be procured in the voluntary market. The plan
378 of operation shall provide a mechanism to assure that, beginning
379 no later than January 1, 1999, the rates charged by the
380 association for each line of business are reflective of approved
381 rates in the voluntary market for hurricane coverage for each
382 line of business in the various areas eligible for association
383 coverage.
384 c. The association shall provide for windstorm coverage on
385 residential properties in limits up to $10 million for
386 commercial lines residential risks and up to $1 million for
387 personal lines residential risks. If coverage with the
388 association is sought for a residential risk valued in excess of
389 these limits, coverage shall be available to the risk up to the
390 replacement cost or actual cash value of the property, at the
391 option of the insured, if coverage for the risk cannot be
392 located in the authorized market. The association must accept a
393 commercial lines residential risk with limits above $10 million
394 or a personal lines residential risk with limits above $1
395 million if coverage is not available in the authorized market.
396 The association may write coverage above the limits specified in
397 this subparagraph with or without facultative or other
398 reinsurance coverage, as the association determines appropriate.
399 d. The plan of operation must provide objective criteria
400 and procedures, approved by the department, to be unifo rmly
Page 16 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
401 applied for all applicants in determining whether an individual
402 risk is so hazardous as to be uninsurable. In making this
403 determination and in establishing the criteria and procedures,
404 the following shall be considered:
405 (I) Whether the likelihood of a loss for the individual
406 risk is substantially higher than for other risks of the same
407 class; and
408 (II) Whether the uncertainty associated with the
409 individual risk is such that an appropriate premium cannot be
410 determined.
411
412 The acceptance or rejection of a risk by the association
413 pursuant to such criteria and procedures must be construed as
414 the private placement of insurance, and the provisions of
415 chapter 120 do not apply.
416 e. If the risk accepts an offer of coverage through the
417 market assistance program or through a mechanism established by
418 the association, either before the policy is issued by the
419 association or during the first 30 days of coverage by the
420 association, and the producing agent who submitted the
421 application to the association is not currently appointed by the
422 insurer, the insurer shall:
423 (I) Pay to the producing agent of record of the policy,
424 for the first year, an amount that is the greater of the
425 insurer's usual and customary commission for the type of policy
Page 17 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
426 written or a fee equal to the usual and customary commission of
427 the association; or
428 (II) Offer to allow the producing agent of record of the
429 policy to continue servicing the policy for a period of not less
430 than 1 year and offer to pay the agent the greater of the
431 insurer's or the association's usual and customary commission
432 for the type of policy written.
433
434 If the producing agent is unwilling or unable to accept
435 appointment, the new insurer shall pay the agent in accordance
436 with sub-sub-subparagraph (I). Subject to the provisions of s.
437 627.3517, the policies issued by the association must provide
438 that if the association obtains an offer from an authorized
439 insurer to cover the risk at its approved rates under either a
440 standard policy including wind coverage or, if consistent with
441 the insurer's underwriting rules as filed with the department, a
442 basic policy including wind coverage, the risk is no longer
443 eligible for coverage through the association. Upon termination
444 of eligibility, the association shall provide written notice to
445 the policyholder and agent of record stating that the
446 association policy must be canceled as of 60 days after the date
447 of the notice because of the offer of coverage from an
448 authorized insurer. Other provisions of the insurance code
449 relating to cancellation and notice of cancellation do not apply
450 to actions under this sub-subparagraph.
Page 18 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
451 f. When the association enters into a contractual
452 agreement for a take-out plan, the producing agent of record of
453 the association policy is entitled to retain any unearned
454 commission on the policy, and the insurer shall:
455 (I) Pay to the producing agent of record of the
456 association policy, for the first year, an amount that is the
457 greater of the insurer's usual and customary commission for the
458 type of policy written or a fee equal to the usual and customary
459 commission of the association; or
460 (II) Offer to allow the producing agent of record of the
461 association policy to continue servicing the policy for a period
462 of not less than 1 year and offer to pay the agent the greater
463 of the insurer's or the association's usual and customary
464 commission for the type of policy written.
465
466 If the producing agent is unwilling or unable to accept
467 appointment, the new insurer shall pay the agent in accordance
468 with sub-sub-subparagraph (I).
469 6.a. The plan of operation may authorize the formation of
470 a private nonprofit corporation, a private nonprofit
471 unincorporated association, a partnership, a trust, a limited
472 liability company, or a nonprofit mutual company which may be
473 empowered, among other things, to borrow money by issuing bonds
474 or by incurring other indebtedness and to accumulate reserves or
475 funds to be used for the payment of insured catastrophe losses.
Page 19 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
476 The plan may authorize all actions necessary to facilitate the
477 issuance of bonds, including the pledging of assessments or
478 other revenues.
479 b. Any entity created under this subsection, or any entity
480 formed for the purposes of this subsection, may sue and be sued,
481 may borrow money; issue bonds, notes, or debt instruments;
482 pledge or sell assessments, market equalization surcharges and
483 other surcharges, rights, premiums, contractual rights,
484 projected recoveries from the Florida Hurricane Catastrophe
485 Fund, other reinsurance recoverables, and other assets as
486 security for such bonds, notes, or debt instruments; enter into
487 any contracts or agreements necessary or proper to accomplish
488 such borrowings; and take other actions necessary to carry out
489 the purposes of this subsection. The association may issue bonds
490 or incur other indebtedness, or have bonds issued on its behalf
491 by a unit of local government pursuant to subparagraph (6)(q)2.,
492 in the absence of a hurricane or other weather-related event,
493 upon a determination by the association subject to approval by
494 the department that such action would enable it to efficiently
495 meet the financial obligations of the association and that such
496 financings are reasonably necessary to effectuate the
497 requirements of this subsection. Any such entity may accumulate
498 reserves and retain surpluses as of the end of any associatio n
499 year to provide for the payment of losses incurred by the
500 association during that year or any future year. The association
Page 20 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
501 shall incorporate and continue the plan of operation and
502 articles of agreement in effect on the effective date of chapter
503 76-96, Laws of Florida, to the extent that it is not
504 inconsistent with chapter 76-96, and as subsequently modified
505 consistent with chapter 76-96. The board of directors and
506 officers currently serving shall continue to serve until their
507 successors are duly qualified as provided under the plan. The
508 assets and obligations of the plan in effect immediately prior
509 to the effective date of chapter 76-96 shall be construed to be
510 the assets and obligations of the successor plan created herein.
511 c. In recognition of s. 10, Art. I of the State
512 Constitution, prohibiting the impairment of obligations of
513 contracts, it is the intent of the Legislature that no action be
514 taken whose purpose is to impair any bond indenture or financing
515 agreement or any revenue source committed by contract to such
516 bond or other indebtedness issued or incurred by the association
517 or any other entity created under this subsection.
518 7. On such coverage, an agent's remuneration shall be that
519 amount of money payable to the agent by the terms of his or her
520 contract with the company with which the business is placed.
521 However, no commission will be paid on that portion of the
522 premium which is in excess of the standard premium of that
523 company.
524 8. Subject to approval by the department, the association
525 may establish different eligibility requirements and operational
Page 21 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
526 procedures for any line or type of coverage for any specified
527 eligible area or portion of an eligible area if the board
528 determines that such changes to the eligibility requirements and
529 operational procedures are justified due to the voluntary market
530 being sufficiently stable and competitive in such area or for
531 such line or type of coverage and that consumers who, in good
532 faith, are unable to obtain insurance through the voluntary
533 market through ordinary methods would continue to have access to
534 coverage from the association. When coverage is sought in
535 connection with a real property transfer, such requirements and
536 procedures shall not provide for an effective date of coverage
537 later than the date of the closing of the transfer as
538 established by the transferor, the transferee, and, if
539 applicable, the lender.
540 9. Notwithstanding any other provision of law:
541 a. The pledge or sale of, the lien upon, and the security
542 interest in any rights, revenues, or other assets of the
543 association created or purported to be created pursuant to any
544 financing documents to secure any bonds or other indebtedness of
545 the association shall be and remain valid and enforceable,
546 notwithstanding the commencement of and during the co ntinuation
547 of, and after, any rehabilitation, insolvency, liquidation,
548 bankruptcy, receivership, conservatorship, reorganization, or
549 similar proceeding against the association under the laws of
550 this state or any other applicable laws.
Page 22 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
551 b. No such proceeding shall relieve the association of its
552 obligation, or otherwise affect its ability to perform its
553 obligation, to continue to collect, or levy and collect,
554 assessments, market equalization or other surcharges, projected
555 recoveries from the Florida Hurricane Catastrophe Fund,
556 reinsurance recoverables, or any other rights, revenues, or
557 other assets of the association pledged.
558 c. Each such pledge or sale of, lien upon, and security
559 interest in, including the priority of such pledge, lien, or
560 security interest, any such assessments, emergency assessments,
561 market equalization or renewal surcharges, projected recoveries
562 from the Florida Hurricane Catastrophe Fund, reinsurance
563 recoverables, or other rights, revenues, or other assets which
564 are collected, or levied and collected, after the commencement
565 of and during the pendency of or after any such proceeding shall
566 continue unaffected by such proceeding.
567 d. As used in this subsection, the term "financing
568 documents" means any agreement, instrument, or other document
569 now existing or hereafter created evidencing any bonds or other
570 indebtedness of the association or pursuant to which any such
571 bonds or other indebtedness has been or may be issued and
572 pursuant to which any rights, revenues, or other assets of the
573 association are pledged or sold to secure the repayment of such
574 bonds or indebtedness, together with the payment of interest on
575 such bonds or such indebtedness, or the payment of any other
Page 23 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
576 obligation of the association related to such bonds or
577 indebtedness.
578 e. Any such pledge or sale of assessments, revenues,
579 contract rights or other rights or assets of the association
580 shall constitute a lien and security interest, or sale, as the
581 case may be, that is immediately effective and attaches to such
582 assessments, revenues, contract, or other rights or assets,
583 whether or not imposed or collected at the time the pledge or
584 sale is made. Any such pledge or sale is effective, valid,
585 binding, and enforceable against the association or other entity
586 making such pledge or sale, and valid and binding against and
587 superior to any competing claims or obligations owed to any
588 other person or entity, including policyholders in this state,
589 asserting rights in any such assessments, revenues, contract, or
590 other rights or assets to the extent set forth in and in
591 accordance with the terms of the pledge or sale contained in the
592 applicable financing documents, whether or not any such person
593 or entity has notice of such pledge or sale and without the need
594 for any physical delivery, recordation, filing, or other action.
595 f. There shall be no liability on the part of, and no
596 cause of action of any nature shall arise against, any member
597 insurer or its agents or employees, agents or employees of the
598 association, members of the board of directors of the
599 association, or the department or its representatives, for any
600 action taken by them in the performance of their duties or
Page 24 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
601 responsibilities under this subsection. Such immunity does not
602 apply to actions for breach of any contract or agreement
603 pertaining to insurance, or any willful tort.
604 (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
605 (a) The public purpose of this subsection is to ensure
606 that there is an orderly market for property insurance for
607 residents and businesses of this state.
608 1. The Legislature finds that private insurers are
609 unwilling or unable to provide affordable property insurance
610 coverage in this state to the extent sought and needed. The
611 absence of affordable property insurance threatens the public
612 health, safety, and welfare and likewise threatens the economic
613 health of the state. The state therefore has a compelling public
614 interest and a public purpose to assist in assuring that
615 property in the state is insured and that it is insured at
616 affordable rates so as to facilitate the remediation,
617 reconstruction, and replacement of damaged or destroyed property
618 in order to reduce or avoid the negative effects otherwise
619 resulting to the public health, safety, and welfare, to the
620 economy of the state, and to the revenues of the state and local
621 governments which are needed to provide for the public welfare.
622 It is necessary, therefore, to provide affordable property
623 insurance to applicants who are in good faith entitled to
624 procure insurance through the voluntary market but are unable to
625 do so. The Legislature intends, therefore, that affordable
Page 25 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
626 property insurance be provided and that it continue to be
627 provided, as long as necessary, through Citizens Property
628 Insurance Corporation, a government entity that is an integral
629 part of the state, and that is not a private insurance company.
630 To that end, the corporation shall strive to increase the
631 availability of affordable property insurance in this state,
632 while achieving efficiencies and economies, and while providing
633 service to policyholders, applicants, and agents which is no
634 less than the quality generally provided in the voluntary
635 market, for the achievement of the foregoing public purposes.
636 Because it is essential for this government entity to have the
637 maximum financial resources to pay claims following a
638 catastrophic hurricane, it is the intent of the Legislature that
639 the corporation continue to be an integral part of the state and
640 that the income of the corporation be exempt from federal income
641 taxation and that interest on the debt obligations issu ed by the
642 corporation be exempt from federal income taxation.
643 2. The Residential Property and Casualty Joint
644 Underwriting Association originally created by this statute
645 shall be known as the Citizens Property Insurance Corporation.
646 The corporation shall provide insurance for residential and
647 commercial property, for applicants who are entitled, but, in
648 good faith, are unable to procure insurance through the
649 voluntary market. The corporation shall operate pursuant to a
650 plan of operation approved by order of the Financial Services
Page 26 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
651 Commission. The plan is subject to continuous review by the
652 commission. The commission may, by order, withdraw approval of
653 all or part of a plan if the commission determines that
654 conditions have changed since approval was granted an d that the
655 purposes of the plan require changes in the plan. For the
656 purposes of this subsection, residential coverage includes both
657 personal lines residential coverage, which consists of the type
658 of coverage provided by homeowner, mobile home owner, dwelling,
659 tenant, condominium unit owner, and similar policies; and
660 commercial lines residential coverage, which consists of the
661 type of coverage provided by condominium association, apartment
662 building, and similar policies.
663 3. With respect to coverage for personal lines residential
664 structures:
665 a. Effective January 1, 2014, a structure that has a
666 dwelling replacement cost of $1 million or more, or a single
667 condominium unit that has a combined dwelling and contents
668 replacement cost of $1 million or more, is not eligible for
669 coverage by the corporation. Such dwellings insured by the
670 corporation on December 31, 2013, may continue to be covered by
671 the corporation until the end of the policy term. The office
672 shall approve the method used by the corporation for val uing the
673 dwelling replacement cost for the purposes of this subparagraph.
674 If a policyholder is insured by the corporation before being
675 determined to be ineligible pursuant to this subparagraph and
Page 27 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
676 such policyholder files a lawsuit challenging the determination,
677 the policyholder may remain insured by the corporation until the
678 conclusion of the litigation.
679 b. Effective January 1, 2015, a structure that has a
680 dwelling replacement cost of $900,000 or more, or a single
681 condominium unit that has a combined dwelling and contents
682 replacement cost of $900,000 or more, is not eligible for
683 coverage by the corporation. Such dwellings insured by the
684 corporation on December 31, 2014, may continue to be covered by
685 the corporation only until the end of the policy term.
686 c. Effective January 1, 2016, a structure that has a
687 dwelling replacement cost of $800,000 or more, or a single
688 condominium unit that has a combined dwelling and contents
689 replacement cost of $800,000 or more, is not eligible for
690 coverage by the corporation. Such dwellings insured by the
691 corporation on December 31, 2015, may continue to be covered by
692 the corporation until the end of the policy term.
693 d. Except in the counties in which the office determines
694 there is not a reasonable degree of competition, effective
695 January 1, 2025 2017, a structure that has a dwelling
696 replacement cost of $1 million $700,000 or more, or a single
697 condominium unit that has a combined dwelling and contents
698 replacement cost of $1 million $700,000 or more, is not eligible
699 for coverage by the corporation. Such dwellings insured by the
700 corporation on December 31, 2016, may continue to be covered by
Page 28 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
701 the corporation until the end of the policy term.
702 The requirements of sub-subparagraphs b.-d. do not apply in
703 counties where the office determines there is not a reasonable
704 degree of competition. In such counties a personal lines
705 residential structure that has a dwelling replacement cost of
706 less than $1 million, or a single condominium unit that has a
707 combined dwelling and contents replacement cost of less than $1
708 million, is eligible for coverage by the corporation.
709 4. It is the intent of the Legislature that policyholders,
710 applicants, and agents of the corporation receive service and
711 treatment of the highest possible level but never less than that
712 generally provided in the voluntary market. It is also intended
713 that the corporation be held to service standards no less than
714 those applied to insurers in the voluntary market by the office
715 with respect to responsiveness, timeliness, customer courtesy,
716 and overall dealings with policyholders, applicants, or agents
717 of the corporation.
718 5.a. Effective January 1, 2009, a personal lines
719 residential structure that is located in the "wind-borne debris
720 region," as defined in s. 1609.2, International Building Code
721 (2006), and that has an insured value on the structure of
722 $750,000 or more is not eligible for coverage by the corporation
723 unless the structure has opening protections as required under
724 the Florida Building Code for a newly constructed residential
725 structure in that area. A residential structure is deemed to
Page 29 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
726 comply with this sub-subparagraph if it has shutters or opening
727 protections on all openings and if such opening protections
728 complied with the Florida Building Code at the time they were
729 installed.
730 b. Any major structure, as defined in s. 161.54(6)(a),
731 that is newly constructed, or rebuilt, repaired, restored, or
732 remodeled to increase the total square footage of finished area
733 by more than 25 percent, pursuant to a permit applied for after
734 July 1, 2015, is not eligible for coverage by the corporation if
735 the structure is seaward of the coastal construction control
736 line established pursuant to s. 161.053 or is within the Coastal
737 Barrier Resources System as designated by 16 U.S.C. ss. 3501 -
738 3510.
739 6. With respect to wind-only coverage for commercial lines
740 residential condominiums, effective July 1, 2014, a condominium
741 shall be deemed ineligible for coverage if 50 percent or more of
742 the units are rented more than eight times in a calendar year
743 for a rental agreement period of less than 30 days.
744 (b)1. All insurers authorized to write one or more subject
745 lines of business in this state are subject to assessment by the
746 corporation and, for the purposes of this subsection, are
747 referred to collectively as "assessable insurers." Insurers
748 writing one or more subject lines of business in this state
749 pursuant to part VIII of chapter 626 are not assessable
750 insurers; however, insureds who procure one or more subject
Page 30 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
751 lines of business in this state pursuant to part VIII of chapter
752 626 are subject to assessment by the corporation and are
753 referred to collectively as "assessable insureds." An insurer's
754 assessment liability begins on the first day of the calendar
755 year following the year in which the insurer was issu ed a
756 certificate of authority to transact insurance for subject lines
757 of business in this state and terminates 1 year after the end of
758 the first calendar year during which the insurer no longer holds
759 a certificate of authority to transact insurance for sub ject
760 lines of business in this state.
761 2.a. All revenues, assets, liabilities, losses, and
762 expenses of the corporation shall be maintained in the Citizens
763 account. The Citizens account may provide divided into three
764 separate accounts as follows:
765 a.(I) A personal lines account for Personal residential
766 policies that provide issued by the corporation which provides
767 comprehensive, multiperil coverage on risks that are not located
768 in areas eligible for coverage by the Florida Windstorm
769 Underwriting Association as those areas were defined on January
770 1, 2002, and for policies that do not provide coverage for the
771 peril of wind on risks that are located in such areas;
772 b.(II) A commercial lines account for Commercial
773 residential and commercial nonresidential policies that provide
774 issued by the corporation which provides coverage for basic
775 property perils on risks that are not located in areas eligible
Page 31 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
776 for coverage by the Florida Windstorm Underwriting Association
777 as those areas were defined on January 1, 2002, and for policies
778 that do not provide coverage for the peril of wind on risks that
779 are located in such areas; and
780 c.(III) A Coastal account for Personal residential
781 policies and commercial residential and commercial
782 nonresidential property policies that provide issued by the
783 corporation which provides coverage for the peril of wind on
784 risks that are located in areas eligible for coverage by the
785 Florida Windstorm Underwriting Association, as those areas were
786 defined on January 1, 2002. The corporation may offer policies
787 that provide multiperil coverage and shall offer policies that
788 provide coverage only for the peril of wind for risks located in
789 areas eligible for coverage by the Florida Windstorm
790 Underwriting Association, as those areas were defined on January
791 1, 2002 in the coastal account. Effective July 1, 2014, The
792 corporation may not offer shall cease offering new commercial
793 residential policies providing multiperil coverage but and shall
794 instead continue to offer commercial residential wind-only
795 policies, and may offer commercial residential policies
796 excluding wind. However, the corporation may, however, continue
797 to renew a commercial residential multiperil policy on a
798 building that was is insured by the corporation on June 30,
799 2014, under a multiperil policy. In issuing multiperil coverage
800 under this sub-subparagraph, the corporation may use its
Page 32 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
801 approved policy forms and rates for risks located in areas not
802 eligible for coverage by the Florida Windstorm Underwriting
803 Association, as those areas were defined on January 1, 2002, and
804 for policies that do not provide coverage for the peril of wind
805 on risks that are located in such areas the personal lines
806 account. An applicant or insured who is eligible to purchase a
807 multiperil policy from the corporation may purchase a multiperil
808 policy from an authorized insurer without prejudice to the
809 applicant's or insured's eligibility to prospectively purchase a
810 policy that provides coverage only for the peril of wind from
811 the corporation. An applicant or insured who is eligible for a
812 corporation policy that provides coverage only for the peril of
813 wind may elect to purchase or retain such policy and also
814 purchase or retain coverage excluding wind from an authorize d
815 insurer without prejudice to the applicant's or insured's
816 eligibility to prospectively purchase a policy that provides
817 multiperil coverage from the corporation. The following
818 policies, which provide coverage only for the peril of wind,
819 must also include quota share primary insurance under
820 subparagraph (c)2.:
821 (I) Personal residential policies and commercial
822 residential and commercial nonresidential property policies that
823 provide coverage for the peril of wind on risks that are located
824 in areas eligible for coverage by the Florida Windstorm
825 Underwriting Association, as those areas were defined on January
Page 33 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
826 1, 2002;
827 (II) Policies that provide multiperil coverage, if offered
828 by the corporation, and policies that provide coverage only for
829 the peril of wind for risks located in areas eligible for
830 coverage by the Florida Windstorm Underwriting Association, as
831 those areas were defined on January 1, 2002;
832 (III) Commercial residential wind-only policies;
833 (IV) Commercial residential policies excluding wind, if
834 offered by the corporation; and
835 (V) Commercial residential multiperil policies on a
836 building that was insured by the corporation on June 30, 2014 It
837 is the goal of the Legislature that there be an overall average
838 savings of 10 percent or more for a policyholder who currently
839 has a wind-only policy with the corporation, and an ex-wind
840 policy with a voluntary insurer or the corporation, and who
841 obtains a multiperil policy from the corporation. It is the
842 intent of the Legislature that the offer of multiperil coverage
843 in the coastal account be made and implemented in a manner that
844 does not adversely affect the tax-exempt status of the
845 corporation or creditworthiness of or security for currently
846 outstanding financing obligations or credit facilities of the
847 coastal account, the personal lines account, or the commer cial
848 lines account. The coastal account must also include quota share
849 primary insurance under subparagraph (c)2.
850
Page 34 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
851 The area eligible for coverage with the corporation under this
852 sub-subparagraph under the coastal account also includes the
853 area within Port Canaveral, which is bordered on the south by
854 the City of Cape Canaveral, bordered on the west by the Banana
855 River, and bordered on the north by Federal Government property.
856 3. With respect to a deficit in the Citizens account:
857 a. Upon a determination by the board of governors that the
858 Citizens account has a projected deficit, the board shall levy a
859 Citizens policyholder surcharge against all policyholders of the
860 corporation.
861 (I) The surcharge shall be levied as a uniform percentage
862 of the premium for the policy of up to 15 percent of such
863 premium, which funds shall be used to offset the deficit.
864 (II) The surcharge is payable upon cancellation or
865 termination of the policy, upon renewal of the policy, or upon
866 issuance of a new policy by the corporation within the first 12
867 months after the date of the levy or the period of time
868 necessary to fully collect the surcharge amount.
869 (III) The surcharge is not considered premium and is not
870 subject to commissions, fees, or premium taxes. However, failure
871 to pay the surcharge shall be treated as failure to pay premium.
872 b. The three separate accounts must be maintained as long
873 as financing obligations entered into by the Florida Windstorm
874 Underwriting Association or Residential Property and Casualty
875 Joint Underwriting Association are outstanding, in accordance
Page 35 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
876 with the terms of the corresponding financing documents. If no
877 such financing obligations remain outstanding or if the
878 financing documents allow for combining of accounts, the
879 corporation may consolidate the three separate accounts into a
880 new account, to be known as the Citizens account, for all
881 revenues, assets, liabilities, losses, and expenses of the
882 corporation. The Citizens account, if established by the
883 corporation, is authorized to provide coverage to the same
884 extent as provided under each of the three separate accounts.
885 The authority to provide coverage under the Citizens account is
886 set forth in subparagraph 4. Consistent with this subparagraph
887 and prudent investment policies that minimize the cost of
888 carrying debt, the board shall exercise its best efforts to
889 retire existing debt or obtain the approval of necessary parties
890 to amend the terms of existing debt, so as to structure the most
891 efficient plan for consolidating the three separate accounts
892 into a single account. Once the accounts are combined into one
893 account, this subparagraph and subparagraph 3. shall be replaced
894 in their entirety by subparagraphs 4. and 5.
895 c. Creditors of the Residential Property and Casualty
896 Joint Underwriting Association and the accounts specified in
897 sub-sub-subparagraphs a.(I) and (II) may have a claim against,
898 and recourse to, those accounts and no claim against, or
899 recourse to, the account referred to in sub-sub-subparagraph
900 a.(III). Creditors of the Florida Windstorm Underwriting
Page 36 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
901 Association have a claim against, and recourse to, the account
902 referred to in sub-sub-subparagraph a.(III) and no claim
903 against, or recourse to, the accounts referred to in sub -sub-
904 subparagraphs a.(I) and (II).
905 d. Revenues, assets, liabilities, losses, and expenses not
906 attributable to particular accounts shall be prorated among the
907 accounts.
908 e. The Legislature finds that the revenues of the
909 corporation are revenues that are necessary to meet the
910 requirements set forth in documents authorizing the issuance of
911 bonds under this subsection.
912 f. The income of the corporation may not inure to the
913 benefit of any private person.
914 3. With respect to a deficit in an account:
915 a. After accounting for the Citizens policyholder
916 surcharge imposed under sub-subparagraph j., if the remaining
917 projected deficit incurred in the coastal account in a
918 particular calendar year:
919 (I) Is not greater than 2 percent of the aggregate
920 statewide direct written premium for the subject lines of
921 business for the prior calendar year, the entire deficit shall
922 be recovered through regular assessments of assessable insurers
923 under paragraph (q) and assessable insureds.
924 (II) Exceeds 2 percent of the aggregate statewide direct
925 written premium for the subject lines of business f or the prior
Page 37 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
926 calendar year, the corporation shall levy regular assessments on
927 assessable insurers under paragraph (q) and on assessable
928 insureds in an amount equal to the greater of 2 percent of the
929 projected deficit or 2 percent of the aggregate statewide direct
930 written premium for the subject lines of business for the prior
931 calendar year. Any remaining projected deficit shall be
932 recovered through emergency assessments under sub-subparagraph
933 e.
934 b. Each assessable insurer's share of the amount being
935 assessed under sub-subparagraph a. must be in the proportion
936 that the assessable insurer's direct written premium for the
937 subject lines of business for the year preceding the assessment
938 bears to the aggregate statewide direct written premium for the
939 subject lines of business for that year. The assessment
940 percentage applicable to each assessable insured is the ratio of
941 the amount being assessed under sub-subparagraph a. to the
942 aggregate statewide direct written premium for the subject lines
943 of business for the prior year. Assessments levied by the
944 corporation on assessable insurers under sub-subparagraph a.
945 must be paid as required by the corporation's plan of operation
946 and paragraph (q). Assessments levied by the corporation on
947 assessable insureds under sub-subparagraph a. shall be collected
948 by the surplus lines agent at the time the surplus lines agent
949 collects the surplus lines tax required by s. 626.932, and paid
950 to the Florida Surplus Lines Service Office at the time the
Page 38 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
951 surplus lines agent pays the surplus lines tax to that office.
952 Upon receipt of regular assessments from surplus lines agents,
953 the Florida Surplus Lines Service Office shall transfer the
954 assessments directly to the corporation as determined by the
955 corporation.
956 c. The corporation may not levy regular assessments under
957 paragraph (q) pursuant to sub-subparagraph a. or sub-
958 subparagraph b. if the three separate accounts in sub -sub-
959 subparagraphs 2.a.(I)-(III) have been consolidated into the
960 Citizens account pursuant to sub-subparagraph 2.b. However, the
961 outstanding balance of any regular assessment levied by the
962 corporation before establishment of the Citizens account remains
963 payable to the corporation.
964 b.d. After accounting for the Citizens policyholder
965 surcharge imposed under sub-subparagraph a. j., the remaining
966 projected deficits in the Citizens personal lines account and in
967 the commercial lines account in a particular calendar year shall
968 be recovered through emergency assessments under sub-
969 subparagraph c. e.
970 c.e. Upon a determination by the board of governors that a
971 projected deficit in the Citizens an account exceeds the amount
972 that is expected to be recovered through surcharges regular
973 assessments under sub-subparagraph a., plus the amount that is
974 expected to be recovered through surcharges under sub-
975 subparagraph j., the board, after verification by the office,
Page 39 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
976 shall levy emergency assessments for as many years as necessary
977 to cover the deficits, to be collected by assessable insurers
978 and the corporation and collected from assessable insureds upon
979 issuance or renewal of policies for subject lines of business,
980 excluding National Flood Insurance Program policies. The amount
981 collected in a particular year must be a uniform percentage of
982 that year's direct written premium for subject lines of business
983 and the Citizens account all accounts of the corporation,
984 excluding National Flood Insurance Program policy premiums, as
985 annually determined by the board and verified by the office. The
986 office shall verify the arithmetic calculations involved in the
987 board's determination within 30 days after receipt of the
988 information on which the determination was based. The office
989 shall notify assessable insurers and the Florida Surplus Lines
990 Service Office of the date on which assessable insurers shall
991 begin to collect and assessable insureds shall begin to pay such
992 assessment. The date must be at least 90 days after the date the
993 corporation levies emergency assessments pursuant to this sub -
994 subparagraph. Notwithstanding any other provision of law, the
995 corporation and each assessable insurer that writes subject
996 lines of business shall collect emergency assessments from its
997 policyholders without such obligation being affected by any
998 credit, limitation, exemption, or deferment. Emergency
999 assessments levied by the corporation on assessable insureds
1000 shall be collected by the surplus lines agent at the time the
Page 40 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1001 surplus lines agent collects the surplus lines tax required by
1002 s. 626.932 and paid to the Florida Surplus Lines Service Office
1003 at the time the surplus lines agent pays the surplus lines tax
1004 to that office. The emergency assessments collected shall be
1005 transferred directly to the corporation on a periodic basis as
1006 determined by the corporation and held by the corporation solely
1007 in the Citizens applicable account. The aggregate amount of
1008 emergency assessments levied for the Citizens an account in any
1009 calendar year may be less than but may not exceed the greater of
1010 10 percent of the amount needed to cover the deficit, plus
1011 interest, fees, commissions, required reserves, and other costs
1012 associated with financing the original deficit, or 10 percent of
1013 the aggregate statewide direct written premium for subject lines
1014 of business and the Citizens account all accounts of the
1015 corporation for the prior year, plus interest, fees,
1016 commissions, required reserves, and other costs associated with
1017 financing the deficit.
1018 d.f. The corporation may pledge the proceeds of
1019 assessments, projected recoveries from the Florida Hurricane
1020 Catastrophe Fund, other insurance and reinsurance recoverables,
1021 policyholder surcharges and other surcharges, and other funds
1022 available to the corporation as the source of revenue for and to
1023 secure bonds issued under paragraph (q), bonds or other
1024 indebtedness issued under subparagraph (c)3., or lines of credit
1025 or other financing mechanisms issued or created under this
Page 41 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1026 subsection, or to retire any other debt incurred as a result of
1027 deficits or events giving rise to deficits, or in any other way
1028 that the board determines will efficiently recover such
1029 deficits. The purpose of the lines of credit or other financing
1030 mechanisms is to provide additional resources to assist the
1031 corporation in covering claims and expenses attributable to a
1032 catastrophe. As used in this subsection, the term "assessments"
1033 includes emergency regular assessments under sub-subparagraph c.
1034 a. or subparagraph (q)1. and emergency assessments under sub -
1035 subparagraph e. Emergency assessments collected under sub-
1036 subparagraph c. e. are not part of an insurer's rates, are not
1037 premium, and are not subject to premium tax, fees, or
1038 commissions; however, failure to pay the emergency assessment
1039 shall be treated as failure to pay premium. The emergency
1040 assessments shall continue as long as any bonds issued or other
1041 indebtedness incurred with respect to a deficit for which the
1042 assessment was imposed remain outstanding, unless adequate
1043 provision has been made for the payment of such bonds or other
1044 indebtedness pursuant to the documents governing such bonds or
1045 indebtedness.
1046 e.g. As used in this subsection and for purposes of any
1047 deficit incurred on or after January 25, 2007, the term "subject
1048 lines of business" means insurance written by assessable
1049 insurers or procured by assessable insureds for all property and
1050 casualty lines of business in this state, but not including
Page 42 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1051 workers' compensation or medical malpractice. As used in this
1052 sub-subparagraph, the term "property and casualty lines of
1053 business" includes all lines of business identified on Form 2,
1054 Exhibit of Premiums and Losses, in the annual statement required
1055 of authorized insurers under s. 624.424 and any rule adopted
1056 under this section, except for those lines identified as
1057 accident and health insurance and except for policies written
1058 under the National Flood Insurance Program or the Federal Crop
1059 Insurance Program. For purposes of this sub-subparagraph, the
1060 term "workers' compensation" includes both workers' compensation
1061 insurance and excess workers' compensation insurance.
1062 f.h. The Florida Surplus Lines Service Office shall
1063 annually determine annually the aggregate statewide written
1064 premium in subject lines of business procured by assessable
1065 insureds and report that information to the corporation in a
1066 form and at a time the corporation specifies to ensure that the
1067 corporation can meet the requirements of this subsection and the
1068 corporation's financing obligations.
1069 g.i. The Florida Surplus Lines Service Office shall verify
1070 the proper application by surplus lines agents of assessment
1071 percentages for regular assessments and emergency assessments
1072 levied under this subparagraph on assessable insureds and assist
1073 the corporation in ensuring the accurate, timely collection and
1074 payment of assessments by surplus lines agents as required by
1075 the corporation.
Page 43 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1076 j. Upon determination by the board of governors that an
1077 account has a projected deficit, the board shall levy a Citizens
1078 policyholder surcharge against all policyholders of the
1079 corporation.
1080 (I) The surcharge shall be levied as a uniform percentage
1081 of the premium for the policy of up to 15 percent of such
1082 premium, which funds shall be used to offset the deficit.
1083 (II) The surcharge is payable upon cancellation or
1084 termination of the policy, upon renewal of the policy, or upon
1085 issuance of a new policy by the corporation within the first 12
1086 months after the date of the levy or the period of time
1087 necessary to fully collect the surcharge amount.
1088 (III) The corporation may not levy any regular assessments
1089 under paragraph (q) pursuant to sub-subparagraph a. or sub-
1090 subparagraph b. with respect to a particular year's deficit
1091 until the corporation has first levied the full amount of the
1092 surcharge authorized by this sub-subparagraph.
1093 (IV) The surcharge is not considered premium and is not
1094 subject to commissions, fees, or premium taxes. However, fai lure
1095 to pay the surcharge shall be treated as failure to pay premium.
1096 h.k. If the amount of any assessments or surcharges
1097 collected from corporation policyholders, assessable insurers or
1098 their policyholders, or assessable insureds exceeds the amount
1099 of the deficits, such excess amounts shall be remitted to and
1100 retained by the corporation in a reserve to be used by the
Page 44 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1101 corporation, as determined by the board of governors and
1102 approved by the office, to pay claims or reduce any past,
1103 present, or future plan-year deficits or to reduce outstanding
1104 debt.
1105 4. The Citizens account, if established by the corporation
1106 pursuant to sub-subparagraph 2.b., is authorized to provide:
1107 a. Personal residential policies that provide
1108 comprehensive, multiperil coverage on risks that are not located
1109 in areas eligible for coverage by the Florida Windstorm
1110 Underwriting Association, as those areas were defined on January
1111 1, 2002, and for policies that do not provide coverage for the
1112 peril of wind on risks that are located in such areas;
1113 b. Commercial residential and commercial nonresidential
1114 policies that provide coverage for basic property perils on
1115 risks that are not located in areas eligible for coverage by the
1116 Florida Windstorm Underwriting Association, as those areas were
1117 defined on January 1, 2002, and for policies that do not provide
1118 coverage for the peril of wind on risks that are located in such
1119 areas; and
1120 c. Personal residential policies and commercial
1121 residential and commercial nonresidential property policies that
1122 provide coverage for the peril of wind on risks that are located
1123 in areas eligible for coverage by the Florida Windstorm
1124 Underwriting Association, as those areas were defined on January
1125 1, 2002. The corporation may offer policies that provide
Page 45 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1126 multiperil coverage and shall offer policies that provide
1127 coverage only for the peril of wind for risks located in areas
1128 eligible for coverage by the Florida Windstorm Underwriting
1129 Association, as those areas were defined on January 1, 2002. The
1130 corporation may not offer new commercial residential policies
1131 providing multiperil coverage, but shall continue to offer
1132 commercial residential wind-only policies, and may offer
1133 commercial residential policies excluding wind. However, the
1134 corporation may continue to renew a commercial residential
1135 multiperil policy on a building that was insured by the
1136 corporation on June 30, 2014, under a multiperil policy. In
1137 issuing multiperil coverage under this sub-subparagraph, the
1138 corporation may use its approved policy forms and rates for
1139 risks located in areas not eligible for coverage by the Florida
1140 Windstorm Underwriting Association as those areas were defined
1141 on January 1, 2002, and for policies that do not provide
1142 coverage for the peril of wind on risks that are located in such
1143 areas. An applicant or insured who is eligible to purchase a
1144 multiperil policy from the corporation may purchase a multiperil
1145 policy from an authorized insurer without prejudice to the
1146 applicant's or insured's eligibility to prospectively purchase a
1147 policy that provides coverage only for the peril of wind from
1148 the corporation. An applicant or insured who is eligible for a
1149 corporation policy that provides coverage only for the peril of
1150 wind may elect to purchase or retain such policy and also
Page 46 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1151 purchase or retain coverage excluding wind from an authorized
1152 insurer without prejudice to the applicant's or insured's
1153 eligibility to prospectively purchase a policy that provides
1154 multiperil coverage from the corporation. The following
1155 policies, which provide coverage only for the peril of wind,
1156 must also include quota share primary insurance under
1157 subparagraph (c)2.: Personal residential policies and commercial
1158 residential and commercial nonresidential property policies that
1159 provide coverage for the peril of wind on risks that are located
1160 in areas eligible for coverage by the Florida Windstorm
1161 Underwriting Association, as those areas were defined on January
1162 1, 2002; policies that provide multiperil coverage, if offered
1163 by the corporation, and policies that provide coverage only f or
1164 the peril of wind for risks located in areas eligible for
1165 coverage by the Florida Windstorm Underwriting Association, as
1166 those areas were defined on January 1, 2002; commercial
1167 residential wind-only policies; commercial residential policies
1168 excluding wind, if offered by the corporation; and commercial
1169 residential multiperil policies on a building that was insured
1170 by the corporation on June 30, 2014. The area eligible for
1171 coverage with the corporation under this sub-subparagraph
1172 includes the area within Port Canaveral, which is bordered on
1173 the south by the City of Cape Canaveral, bordered on the west by
1174 the Banana River, and bordered on the north by Federal
1175 Government property.
Page 47 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1176 5. With respect to a deficit in the Citizens account:
1177 a. Upon a determination by the board of governors that the
1178 Citizens account has a projected deficit, the board shall levy a
1179 Citizens policyholder surcharge against all policyholders of the
1180 corporation.
1181 (I) The surcharge shall be levied as a uniform percentage
1182 of the premium for the policy of up to 15 percent of such
1183 premium, which funds shall be used to offset the deficit.
1184 (II) The surcharge is payable upon cancellation or
1185 termination of the policy, upon renewal of the policy, or upon
1186 issuance of a new policy by the corporation within the first 12
1187 months after the date of the levy or the period of time
1188 necessary to fully collect the surcharge amount.
1189 (III) The surcharge is not considered premium and is not
1190 subject to commissions, fees, or premium taxes. However, failure
1191 to pay the surcharge shall be treated as failure to pay premium.
1192 b. After accounting for the Citizens policyholder
1193 surcharge imposed under sub-subparagraph a., the remaining
1194 projected deficit incurred in the Citizens account in a
1195 particular calendar year shall be recovered through emergency
1196 assessments under sub-subparagraph c.
1197 c. Upon a determination by the board of governors that a
1198 projected deficit in the Citizens account exceeds the amount
1199 that is expected to be recovered through surcharges under sub-
1200 subparagraph a., the board, after verification by the office,
Page 48 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1201 shall levy emergency assessments for as many years as necessary
1202 to cover the deficits, to be collected by assessable insurers
1203 and the corporation and collected from assessable insureds upon
1204 issuance or renewal of policies for subject lines of business,
1205 excluding National Flood Insurance Program policies. The amount
1206 collected in a particular year must be a uniform percentage of
1207 that year's direct written premium for subject lines of business
1208 and the Citizens account, National Flood Insurance Program
1209 policy premiums, as annually determined by the board and
1210 verified by the office. The office shall verify the arithmetic
1211 calculations involved in the board's determination within 30
1212 days after receipt of the information on which the determination
1213 was based. The office shall notify assessable insurers and the
1214 Florida Surplus Lines Service Office of the date on which
1215 assessable insurers shall begin to collect and assessable
1216 insureds shall begin to pay such assessment. The date must be at
1217 least 90 days after the date the corporation levies emergency
1218 assessments pursuant to this sub-subparagraph. Notwithstanding
1219 any other law, the corporation and each assessable insurer that
1220 writes subject lines of business shall collect emergency
1221 assessments from its policyholders without such obligation being
1222 affected by any credit, limitation, exemption, or deferment.
1223 Emergency assessments levied by the corporation on assessable
1224 insureds shall be collected by the surplus lines agent at the
1225 time the surplus lines agent collects the surplus lines tax
Page 49 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1226 required by s. 626.932 and paid to the Florida Surplus Lines
1227 Service Office at the time the surplus lines agent pays the
1228 surplus lines tax to that office. The emergency assessments
1229 collected shall be transferred directly to the corporation on a
1230 periodic basis as determined by the corporation and held by the
1231 corporation solely in the Citizens account. The aggregate amount
1232 of emergency assessments levied for the Citizens ac count in any
1233 calendar year may be less than, but may not exceed the greater
1234 of, 10 percent of the amount needed to cover the deficit, plus
1235 interest, fees, commissions, required reserves, and other costs
1236 associated with financing the original deficit or 10 percent of
1237 the aggregate statewide direct written premium for subject lines
1238 of business and the Citizens accounts for the prior year, plus
1239 interest, fees, commissions, required reserves, and other costs
1240 associated with financing the deficit.
1241 d. The corporation may pledge the proceeds of assessments,
1242 projected recoveries from the Florida Hurricane Catastrophe
1243 Fund, other insurance and reinsurance recoverables, policyholder
1244 surcharges and other surcharges, and other funds available to
1245 the corporation as the source of revenue for and to secure bonds
1246 issued under paragraph (q), bonds or other indebtedness issued
1247 under subparagraph (c)3., or lines of credit or other financing
1248 mechanisms issued or created under this subsection; or to retire
1249 any other debt incurred as a result of deficits or events giving
1250 rise to deficits, or in any other way that the board determines
Page 50 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1251 will efficiently recover such deficits. The purpose of the lines
1252 of credit or other financing mechanisms is to provide additional
1253 resources to assist the corporation in covering claims and
1254 expenses attributable to a catastrophe. As used in this
1255 subsection, the term "assessments" includes emergency
1256 assessments under sub-subparagraph c. Emergency assessments
1257 collected under sub-subparagraph c. are not part of an insurer's
1258 rates, are not premium, and are not subject to premium tax,
1259 fees, or commissions; however, failure to pay the emergency
1260 assessment shall be treated as failure to pay premium. The
1261 emergency assessments shall continue as long as any bonds issued
1262 or other indebtedness incurred with respect to a deficit for
1263 which the assessment was imposed remain outstanding, unless
1264 adequate provision has been made for the payment of such bonds
1265 or other indebtedness pursuant to the documents governing such
1266 bonds or indebtedness.
1267 e. As used in this subsection and for purposes of any
1268 deficit incurred on or after January 25, 2007, the term "subject
1269 lines of business" means insurance written by assessable
1270 insurers or procured by assessable insureds for all prop erty and
1271 casualty lines of business in this state, but not including
1272 workers' compensation or medical malpractice. As used in this
1273 sub-subparagraph, the term "property and casualty lines of
1274 business" includes all lines of business identified on Form 2,
1275 Exhibit of Premiums and Losses, in the annual statement required
Page 51 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1276 of authorized insurers under s. 624.424 and any rule adopted
1277 under this section, except for those lines identified as
1278 accident and health insurance and except for policies written
1279 under the National Flood Insurance Program or the Federal Crop
1280 Insurance Program. For purposes of this sub-subparagraph, the
1281 term "workers' compensation" includes both workers' compensation
1282 insurance and excess workers' compensation insurance.
1283 f. The Florida Surplus Lines Service Office shall annually
1284 determine the aggregate statewide written premium in subject
1285 lines of business procured by assessable insureds and report
1286 that information to the corporation in a form and at a time the
1287 corporation specifies to ensure that the corporation can meet
1288 the requirements of this subsection and the corporation's
1289 financing obligations.
1290 g. The Florida Surplus Lines Service Office shall verify
1291 the proper application by surplus lines agents of assessment
1292 percentages for emergency assessments levied under this
1293 subparagraph on assessable insureds and assist the corporation
1294 in ensuring the accurate, timely collection and payment of
1295 assessments by surplus lines agents as required by the
1296 corporation.
1297 h. If the amount of any assessments or surcharges
1298 collected from corporation policyholders, assessable insurers or
1299 their policyholders, or assessable insureds exceeds the amount
1300 of the deficits, such excess amounts shall be remitted to and
Page 52 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1301 retained by the corporation in a reserve to be used by the
1302 corporation, as determined by the board of governors and
1303 approved by the office, to pay claims or reduce any past,
1304 present, or future plan-year deficits or to reduce outstanding
1305 debt.
1306 (c) The corporation's plan of operation:
1307 1. Must provide for adoption of residential property and
1308 casualty insurance policy forms and commercial residential and
1309 nonresidential property insurance forms, which must be approved
1310 by the office before use. The corporation shall adopt the
1311 following policy forms:
1312 a. Standard personal lines policy forms that are
1313 comprehensive multiperil policies providing full coverage of a
1314 residential property equivalent to the coverage provided in the
1315 private insurance market under an HO-3, HO-4, or HO-6 policy.
1316 b. Basic personal lines policy forms that are policies
1317 similar to an HO-8 policy or a dwelling fire policy that provide
1318 coverage meeting the requirements of the secondary mortgage
1319 market, but which is more limited than the coverage under a
1320 standard policy.
1321 c. Commercial lines residential and nonresidential policy
1322 forms that are generally similar to the basic perils of full
1323 coverage obtainable for commercial residential structures and
1324 commercial nonresidential structures in the admitted voluntary
1325 market.
Page 53 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1326 d. Personal lines and commercial lines residential
1327 property insurance forms that cover the peril of wind only. The
1328 forms are applicable only to residential properties located in
1329 areas eligible for coverage by the Florida Windstorm
1330 Underwriting Association, as those areas were defined on January
1331 1, 2002.
1332 e. Commercial lines nonresidential property insurance
1333 forms that cover the peril of wind only. The forms are
1334 applicable only to nonresidential properties located in areas
1335 eligible for coverage by the Florida Windstorm Underwriting
1336 Association, as those areas were defined on January 1, 2002.
1337 f. The corporation may adopt variations of the policy
1338 forms listed in sub-subparagraphs a.-e. which contain more
1339 restrictive coverage.
1340 g. The corporation shall offer a basic personal lines
1341 policy similar to an HO-8 policy with dwelling repair based on
1342 common construction materials and methods.
1343 2. Must provide that the corporation adopt a program in
1344 which the corporation and authorized insurers enter into quota
1345 share primary insurance agreements for hurricane coverage, as
1346 defined in s. 627.4025(2)(a), for eligible risks, and adopt
1347 property insurance forms for eligible risks which cover the
1348 peril of wind only.
1349 a. As used in this subsection, the term:
1350 (I) "Approved rate" means:
Page 54 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1351 (A) With respect to an authorized insurer that holds a
1352 certificate of authority, such insurer's filed and approved
1353 rate.
1354 (B) With respect to an authorized insurer that is an
1355 eligible surplus lines insurer, the rate approved by the office
1356 as part of such insurer's take-out plan.
1357 (II) "Authorized insurer" means:
1358 (A) An insurer holding a certificate of authority; or
1359 (B) An eligible surplus lines insurer that is rated "A -"
1360 or higher by A.M. Best Company and whose Florida personal lines
1361 residential risk or commercial lines residential risk program is
1362 managed by a Florida resident surplus lines broker.
1363 (IV) "Primary residence" means the dwelling that is the
1364 policyholder's primary home or is a rental property that is the
1365 primary home of the tenant, and which the policyholder or tenant
1366 occupies for more than 9 months of each year.
1367 (V)(I) "Quota share primary insurance" means an
1368 arrangement in which the primary hurricane coverage of an
1369 eligible risk is provided in specified percentages by the
1370 corporation and an authorized insurer. The corporation and
1371 authorized insurer are each solely responsible for a specified
1372 percentage of hurricane coverage of an eligible risk as set
1373 forth in a quota share primary insurance agreement between the
1374 corporation and an authorized insurer and the insurance
1375 contract. The responsibility of the corporation or authorized
Page 55 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1376 insurer to pay its specified percentage of hurricane losses of
1377 an eligible risk, as set forth in the agreement, may not be
1378 altered by the inability of the other party to pay its specified
1379 percentage of losses. Eligible risks that are provided hurricane
1380 coverage through a quota share primary insurance arrangement
1381 must be provided policy forms that set forth the obligations of
1382 the corporation and authorized insurer under the arrangement,
1383 clearly specify the percentages of quota share primary insurance
1384 provided by the corporation and authorized insurer, and
1385 conspicuously and clearly state that the authorized insurer and
1386 the corporation may not be held responsible beyond th eir
1387 specified percentage of coverage of hurricane losses.
1388 (III)(II) "Eligible risks" means personal lines
1389 residential and commercial lines residential risks that meet the
1390 underwriting criteria of the corporation and are located in
1391 areas that were eligible for coverage by the Florida Windstorm
1392 Underwriting Association on January 1, 2002.
1393 b. The corporation may enter into quota share primary
1394 insurance agreements with authorized insurers at corporation
1395 coverage levels of 90 percent and 50 percent.
1396 c. If the corporation determines that additional coverage
1397 levels are necessary to maximize participation in quota share
1398 primary insurance agreements by authorized insurers, the
1399 corporation may establish additional coverage levels. However,
1400 the corporation's quota share primary insurance coverage level
Page 56 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1401 may not exceed 90 percent.
1402 d. Any quota share primary insurance agreement entered
1403 into between an authorized insurer and the corporation must
1404 provide for a uniform specified percentage of coverage of
1405 hurricane losses, by county or territory as set forth by the
1406 corporation board, for all eligible risks of the authorized
1407 insurer covered under the agreement.
1408 e. Any quota share primary insurance agreement entered
1409 into between an authorized insurer and the corporation is
1410 subject to review and approval by the office. However, such
1411 agreement shall be authorized only as to insurance contracts
1412 entered into between an authorized insurer and an insured who is
1413 already insured by the corporation for wind coverage.
1414 f. For all eligible risks covered under quota share
1415 primary insurance agreements, the exposure and coverage levels
1416 for both the corporation and authorized insurers shall be
1417 reported by the corporation to the Florida Hurricane Catastrophe
1418 Fund. For all policies of eligible risks covered under such
1419 agreements, the corporation and the authorized insurer must
1420 maintain complete and accurate records for the purpose of
1421 exposure and loss reimbursement audits as required by fund
1422 rules. The corporation and the authorized insurer shall each
1423 maintain duplicate copies of policy declaration pages and
1424 supporting claims documents.
1425 g. The corporation board shall establish in its plan of
Page 57 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1426 operation standards for quota share agreements which ensure that
1427 there is no discriminatory application among insurers as to the
1428 terms of the agreements, pricing of the agreements, incentive
1429 provisions if any, and consideration paid for servicing policies
1430 or adjusting claims.
1431 h. The quota share primary insurance agreement between the
1432 corporation and an authorized insurer must set forth the
1433 specific terms under which coverage is provided, including, but
1434 not limited to, the sale and servicing of policies issued under
1435 the agreement by the insurance agent of the authorized insurer
1436 producing the business, the reporting of information concerning
1437 eligible risks, the payment of premium to the corporation, and
1438 arrangements for the adjustment and payment of hurricane claims
1439 incurred on eligible risks by the claims adjuster and personnel
1440 of the authorized insurer. Entering into a quota sharing
1441 insurance agreement between the corporation and an authorized
1442 insurer is voluntary and at the discretion of the authorized
1443 insurer.
1444 3. May provide that the corporation may employ or
1445 otherwise contract with individuals or other entities to provide
1446 administrative or professional services that may be appropriate
1447 to effectuate the plan. The corporation may borrow funds by
1448 issuing bonds or by incurring other indebtedness, and shall have
1449 other powers reasonably necessary to effectuate the requirements
1450 of this subsection, including, without limitation, the power to
Page 58 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1451 issue bonds and incur other indebtedness in order to refinance
1452 outstanding bonds or other indebtedness. The corporation may
1453 seek judicial validation of its bonds or other indebtedness
1454 under chapter 75. The corporation may issue bonds or incur other
1455 indebtedness, or have bonds issued on its behalf by a unit of
1456 local government pursuant to subparagraph (q)2. in the absence
1457 of a hurricane or other weather-related event, upon a
1458 determination by the corporation, subject to approval by the
1459 office, that such action would enable it to efficiently meet the
1460 financial obligations of the corporation and that such
1461 financings are reasonably necessary to effectuate the
1462 requirements of this subsection. The corporation may take all
1463 actions needed to facilitate tax-free status for such bonds or
1464 indebtedness, including formation of trusts or other affiliated
1465 entities. The corporation may pledge assessments, projected
1466 recoveries from the Florida Hurricane Catastrophe Fund, other
1467 reinsurance recoverables, policyholder surcharges and other
1468 surcharges, and other funds available to the corporation as
1469 security for bonds or other indebtedness. In recognition of s.
1470 10, Art. I of the State Constitution, prohibiting the impairment
1471 of obligations of contracts, it is the intent of the Legislature
1472 that no action be taken whose purpose is to impair any bond
1473 indenture or financing agreement or any revenue source committed
1474 by contract to such bond or other indebtedness.
1475 4. Must require that the corporation operate subject to
Page 59 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1476 the supervision and approval of a board of governors consisting
1477 of nine individuals who are residents of this state and who are
1478 from different geographical areas of the state, one of who m is
1479 appointed by the Governor and serves solely to advocate on
1480 behalf of the consumer. The appointment of a consumer
1481 representative by the Governor is deemed to be within the scope
1482 of the exemption provided in s. 112.313(7)(b) and is in addition
1483 to the appointments authorized under sub-subparagraph a.
1484 a. The Governor, the Chief Financial Officer, the
1485 President of the Senate, and the Speaker of the House of
1486 Representatives shall each appoint two members of the board. At
1487 least one of the two members appointed by each appointing
1488 officer must have demonstrated expertise in insurance and be
1489 deemed to be within the scope of the exemption provided in s.
1490 112.313(7)(b). The Chief Financial Officer shall designate one
1491 of the appointees as chair. All board members serve at the
1492 pleasure of the appointing officer. All members of the board are
1493 subject to removal at will by the officers who appointed them.
1494 All board members, including the chair, must be appointed to
1495 serve for 3-year terms beginning annually on a date designated
1496 by the plan. However, for the first term beginning on or after
1497 July 1, 2009, each appointing officer shall appoint one member
1498 of the board for a 2-year term and one member for a 3-year term.
1499 A board vacancy shall be filled for the unexpired term by the
1500 appointing officer. The Chief Financial Officer shall appoint a
Page 60 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1501 technical advisory group to provide information and advice to
1502 the board in connection with the board's duties under this
1503 subsection. The executive director and senior managers of the
1504 corporation shall be engaged by the board and serve at the
1505 pleasure of the board. Any executive director appointed on or
1506 after July 1, 2006, is subject to confirmation by the Senate.
1507 The executive director is responsible for employing other staff
1508 as the corporation may require, subject to review and
1509 concurrence by the board.
1510 b. The board shall create a Market Accountability Advisory
1511 Committee to assist the corporation in developing awareness of
1512 its rates and its customer and agent service levels in
1513 relationship to the voluntary market insurers writing similar
1514 coverage.
1515 (I) The members of the advisory committee consist of the
1516 following 11 persons, one of whom must be elected chair by the
1517 members of the committee: four representatives, one appointed by
1518 the Florida Association of Insurance Agents, one by the Florida
1519 Association of Insurance and Financial Advisors, one by the
1520 Professional Insurance Agents of Florida, and one by the Latin
1521 American Association of Insurance Agencies; three
1522 representatives appointed by the insurers with the three highest
1523 voluntary market share of residential property insurance
1524 business in the state; one representative from the Office of
1525 Insurance Regulation; one consumer appointed by the board who is
Page 61 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1526 insured by the corporation at the time of appointment to the
1527 committee; one representative appointed by the Florida
1528 Association of Realtors; and one representative appointed by the
1529 Florida Bankers Association. All members shall be appointed to
1530 3-year terms and may serve for consecutive terms.
1531 (II) The committee shall report to the corporation at each
1532 board meeting on insurance market issues which may include rates
1533 and rate competition with the voluntary market; service,
1534 including policy issuance, claims processing, and general
1535 responsiveness to policyholders, applicants, and agents; and
1536 matters relating to depopulation.
1537 5. Must provide a procedure for determining the
1538 eligibility of a risk for coverage, as follows:
1539 a. Subject to s. 627.3517, with respect to personal lines
1540 residential risks, if the risk is offered coverage from an
1541 authorized insurer at the insurer's approved rate under a
1542 standard policy including wind coverage or, if consistent with
1543 the insurer's underwriting rules as filed with the office, a
1544 basic policy including wind coverage, for a new application to
1545 the corporation for coverage, the risk is not eligible for any
1546 policy issued by the corporation unless the premium for coverage
1547 from the authorized insurer is more than 20 percent greater than
1548 the premium for comparable coverage from the corporation.
1549 Whenever an offer of coverage for a personal lines residential
1550 risk is received for a policyholder of the corporation at
Page 62 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1551 renewal from an authorized insurer, if the offer is equal to or
1552 less than the corporation's renewal premium for comparable
1553 coverage, the risk is not eligible for coverage with the
1554 corporation for policies that renew before April 1, 2023; for
1555 policies that renew on or after that date, the risk is not
1556 eligible for coverage with the corporation unless the premium
1557 for coverage from the authorized insurer is more than 20 percent
1558 greater than the corporation's renewal premium for comparable
1559 coverage. If the risk is not able to obtain such offer, the risk
1560 is eligible for a standard policy including wind coverage or a
1561 basic policy including wind coverage issued by the corporation;
1562 however, if the risk could not be insured under a standard
1563 policy including wind coverage regardless of market conditions,
1564 the risk is eligible for a basic policy including wind coverage
1565 unless rejected under subparagraph 8. The corporation shall
1566 determine the type of policy to be provided on the basis of
1567 objective standards specified in the underwriting manual and
1568 based on generally accepted underwriting practices. A
1569 policyholder removed from the corporation through an assumption
1570 agreement does not remain eligible for coverage from the
1571 corporation after the end of the policy term. However, any
1572 policy removed from the corporation through an assumption
1573 agreement remains on the corporation's policy forms through the
1574 end of the policy term. However, notwithstanding any other
1575 provision of law, this sub-subparagraph does not apply to a
Page 63 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1576 policy that does not cover a primary residence.
1577 (I) If the risk accepts an offer of coverage through the
1578 market assistance plan or through a mechanism established by the
1579 corporation other than a plan established by s. 627.3518, before
1580 a policy is issued to the risk by the corporation or during the
1581 first 30 days of coverage by the corporation, and the producing
1582 agent who submitted the application to the plan or to the
1583 corporation is not currently appointed by the insurer, the
1584 insurer shall:
1585 (A) Pay to the producing agent of record of the policy for
1586 the first year, an amount that is the greater of the insurer's
1587 usual and customary commission for the type of policy written or
1588 a fee equal to the usual and customary commission of the
1589 corporation; or
1590 (B) Offer to allow the producing agent of record of the
1591 policy to continue servicing the policy for at least 1 year and
1592 offer to pay the agent the greater of the insurer's or the
1593 corporation's usual and customary commission for the type of
1594 policy written.
1595
1596 If the producing agent is unwilling or unable to accept
1597 appointment for any reason, including the failure of such agent
1598 to be licensed as a surplus lines agent, the new insurer shall
1599 pay the agent in accordance with sub-sub-sub-subparagraph (A).
1600 (II) If the corporation enters into a contractual
Page 64 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1601 agreement for a take-out plan, the producing agent of record of
1602 the corporation policy is entitled to retain any unearned
1603 commission on the policy, and the insurer shall:
1604 (A) Pay to the producing agent of record, for the first
1605 year, an amount that is the greater of the insurer's usual and
1606 customary commission for the type of policy written or a fee
1607 equal to the usual and customary commission of the corporation;
1608 or
1609 (B) Offer to allow the producing agent of record to
1610 continue servicing the policy for at least 1 year and offer to
1611 pay the agent the greater of the insurer's or the cor poration's
1612 usual and customary commission for the type of policy written.
1613
1614 If the producing agent is unwilling or unable to accept
1615 appointment for any reason, including the failure of such agent
1616 to be licensed as a surplus lines agent, the new insurer shall
1617 pay the agent in accordance with sub-sub-sub-subparagraph (A).
1618 This sub-sub-subparagraph does not apply to an authorized
1619 insurer that is an eligible surplus lines insurer.
1620 b. With respect to commercial lines residential risks, for
1621 a new application to the corporation for coverage, if the risk
1622 is offered coverage under a policy including wind coverage from
1623 an admitted authorized insurer at its approved rate, the risk is
1624 not eligible for a policy issued by the corporation unless the
1625 premium for coverage from the admitted authorized insurer is
Page 65 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1626 more than 20 percent greater than the premium for comparable
1627 coverage from the corporation. Whenever an offer of coverage for
1628 a commercial lines residential risk is received for a
1629 policyholder of the corporation at renewal from an admitted
1630 authorized insurer, the risk is not eligible for coverage with
1631 the corporation unless the premium for coverage from the
1632 admitted authorized insurer is more than 20 percent greater than
1633 the corporation's renewal premium for comparable coverage. If
1634 the risk is not able to obtain any such offer, the risk is
1635 eligible for a policy including wind coverage issued by the
1636 corporation. A policyholder removed from the corporation through
1637 an assumption agreement remains eligible for coverage fr om the
1638 corporation until the end of the policy term. However, any
1639 policy removed from the corporation through an assumption
1640 agreement remains on the corporation's policy forms through the
1641 end of the policy term. With respect to commercial lines
1642 residential risks for a new application to the corporation for
1643 coverage, if the risk is offered coverage from an eligible
1644 surplus lines insurer at the insurer's approved rate under a
1645 policy including wind coverage, the risk is not eligible for a
1646 policy issued by the corporation. If an offer of coverage for a
1647 commercial lines residential risk is received for a policyholder
1648 of the corporation by an eligible surplus lines insurer at
1649 renewal, the risk is not eligible for coverage with the
1650 corporation.
Page 66 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1651 (I) If the risk accepts an offer of coverage through the
1652 market assistance plan or through a mechanism established by the
1653 corporation other than a plan established by s. 627.3518, before
1654 a policy is issued to the risk by the corporation or during the
1655 first 30 days of coverage by the corporation, and the producing
1656 agent who submitted the application to the plan or the
1657 corporation is not currently appointed by the insurer, the
1658 insurer shall:
1659 (A) Pay to the producing agent of record of the policy,
1660 for the first year, an amount that is the greater of the
1661 insurer's usual and customary commission for the type of policy
1662 written or a fee equal to the usual and customary commission of
1663 the corporation; or
1664 (B) Offer to allow the producing agent of record of the
1665 policy to continue servicing the policy for at least 1 year and
1666 offer to pay the agent the greater of the insurer's or the
1667 corporation's usual and customary commission for the type of
1668 policy written.
1669
1670 If the producing agent is unwilling or unable to accept
1671 appointment for any reason, including the failure of such agent
1672 to be licensed as a surplus lines agent, the new insurer shall
1673 pay the agent in accordance with sub-sub-sub-subparagraph (A).
1674 This sub-sub-subparagraph does not apply to an authorized
1675 insurer that is an eligible surplus lines insurer.
Page 67 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1676 (II) If the corporation enters into a contractual
1677 agreement for a take-out plan, the producing agent of record of
1678 the corporation policy is entitled to retain any unearned
1679 commission on the policy, and the insurer shall:
1680 (A) Pay to the producing agent of record, for the first
1681 year, an amount that is the greater of the insurer's usual and
1682 customary commission for the type of policy written or a fee
1683 equal to the usual and customary commission of the corporation;
1684 or
1685 (B) Offer to allow the producing agent of record to
1686 continue servicing the policy for at least 1 year and offer to
1687 pay the agent the greater of the insurer's or the corporation's
1688 usual and customary commission for the type of policy written.
1689
1690 If the producing agent is unwilling or unable to accept
1691 appointment for any reason, including the failure of such agent
1692 to be licensed as a surplus lines agent, the new insurer shall
1693 pay the agent in accordance with sub-sub-sub-subparagraph (A).
1694 This sub-sub-subparagraph does not apply to an authorized
1695 insurer that is an eligible surplus lines insurer.
1696 c. For purposes of determining comparable coverage under
1697 sub-subparagraphs a. and b., the comparison must be based on
1698 those forms and coverages that are reasonably comparable. The
1699 corporation may rely on a determination of comparable coverage
1700 and premium made by the producing agent who submits the
Page 68 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1701 application to the corporation, made in the agent's capacity as
1702 the corporation's agent. For purposes of comparing the premium
1703 for comparable coverage under sub-subparagraphs a. and b.,
1704 premium includes any surcharge or assessment that is actually
1705 applied to such policy. A comparison may be made solely of the
1706 premium with respect to the main building or structure only on
1707 the following basis: the same Coverage A or other building
1708 limits; the same percentage hurricane deductible that applies on
1709 an annual basis or that applies to each hurricane for commercial
1710 residential property; the same percentage of ordinance and law
1711 coverage, if the same limit is offered by both the corporation
1712 and the authorized insurer; the same mitigation credits, to the
1713 extent the same types of credits are offered both by the
1714 corporation and the authorized insurer; the same method for loss
1715 payment, such as replacement cost or actual cash value, if the
1716 same method is offered both by the corporation and the
1717 authorized insurer in accordance with underwriting rules; and
1718 any other form or coverage that is reasonably comparable as
1719 determined by the board. If an application is submitted to the
1720 corporation for wind-only coverage on a risk that is located in
1721 an area eligible for coverage by the Florida Windstorm
1722 Underwriting Association, as that area was defined on January 1,
1723 2002, the premium for the corporation's wind-only policy plus
1724 the premium for the ex-wind policy that is offered by an
1725 authorized insurer to the applicant must be compared to the
Page 69 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1726 premium for multiperil coverage offered by an authorized
1727 insurer, subject to the standards for comparison specified in
1728 this subparagraph. If the corporation or the applicant requests
1729 from the authorized insurer a breakdown of the premium of the
1730 offer by types of coverage so that a comparison may be made by
1731 the corporation or its agent and the authorized insurer refuses
1732 or is unable to provide such information, the corporation may
1733 treat the offer as not being an offer of coverage from an
1734 authorized insurer at the insurer's approved rate. However,
1735 notwithstanding any other provision of law, this sub-
1736 subparagraph does not apply to a policy that does not cover a
1737 primary residence.
1738 6. Must include rules for classifications of risks and
1739 rates.
1740 7. Must provide that if premium and investment income:
1741 a. for the Citizens an account, which are attributable to
1742 a particular calendar year are in excess of projected losses and
1743 expenses for the Citizens account attributable to that year,
1744 such excess shall be held in surplus in the Citizens account.
1745 Such surplus must be available to defray deficits in the
1746 Citizens that account as to future years and used for that
1747 purpose before assessing assessable insurers and assessable
1748 insureds as to any calendar year; or
1749 b. For the Citizens account, if established by the
1750 corporation, which are attributable to a particular calendar
Page 70 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1751 year are in excess of projected losses and expenses for the
1752 Citizens account attributable to that year, such excess shall be
1753 held in surplus in the Citizens account. Such surplus must be
1754 available to defray deficits in the Citizens account as to
1755 future years and used for that purpose before assessing
1756 assessable insurers and assessable insureds as to any calendar
1757 year.
1758 8. Must provide objective criteria and procedures to be
1759 uniformly applied to all applicants in determining whether an
1760 individual risk is so hazardous as to be uninsurable. In making
1761 this determination and in establishing the criteria and
1762 procedures, the following must be considered:
1763 a. Whether the likelihood of a loss for the individual
1764 risk is substantially higher than for other risks of the same
1765 class; and
1766 b. Whether the uncertainty associated with the individual
1767 risk is such that an appropriate premium cannot be determined.
1768
1769 The acceptance or rejection of a risk by the corporation shall
1770 be construed as the private placement of insurance, and the
1771 provisions of chapter 120 do not apply.
1772 9. Must provide that the corporation make its best efforts
1773 to procure catastrophe reinsurance at reasonable rates, to cover
1774 its projected 100-year probable maximum loss as determined by
1775 the board of governors. If catastrophe reinsurance is not
Page 71 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1776 available at reasonable rates, the corporation need not purchase
1777 it, but the corporation shall include the costs of reinsurance
1778 to cover its projected 100-year probable maximum loss in its
1779 rate calculations even if it does not purchase catastrophe
1780 reinsurance.
1781 10. The policies issued by the corporation must provide
1782 that if the corporation or the market assistance plan obtains an
1783 offer from an authorized insurer to cover the risk at its
1784 approved rates, the risk is no longer eligible for renewal
1785 through the corporation, except as otherwise provided in this
1786 subsection.
1787 11. Corporation policies and applications must include a
1788 notice that the corporation policy could, under this section, be
1789 replaced with a policy issued by an authorized insurer which
1790 does not provide coverage identical to the coverage provided by
1791 the corporation. The notice must also specify that acceptance of
1792 corporation coverage creates a conclusive presumption that the
1793 applicant or policyholder is aware of this potential.
1794 12. May establish, subject to approval by the office,
1795 different eligibility requirements and operational procedures
1796 for any line or type of coverage for any specified county or
1797 area if the board determines that such changes are justified due
1798 to the voluntary market being sufficiently stable and
1799 competitive in such area or for such line or type of coverage
1800 and that consumers who, in good faith, are unable to obtain
Page 72 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1801 insurance through the voluntary market through ordinary metho ds
1802 continue to have access to coverage from the corporation. If
1803 coverage is sought in connection with a real property transfer,
1804 the requirements and procedures may not provide an effective
1805 date of coverage later than the date of the closing of the
1806 transfer as established by the transferor, the transferee, and,
1807 if applicable, the lender.
1808 13. Must provide that:
1809 a. With respect to the coastal account, any assessable
1810 insurer with a surplus as to policyholders of $25 million or
1811 less writing 25 percent or more of its total countrywide
1812 property insurance premiums in this state may petition the
1813 office, within the first 90 days of each calendar year, to
1814 qualify as a limited apportionment company. A regular assessment
1815 levied by the corporation on a limited apportionment company for
1816 a deficit incurred by the corporation for the coastal account
1817 may be paid to the corporation on a monthly basis as the
1818 assessments are collected by the limited apportionment company
1819 from its insureds, but a limited apportionment company must
1820 begin collecting the regular assessments not later than 90 days
1821 after the regular assessments are levied by the corporation, and
1822 the regular assessments must be paid in full within 15 months
1823 after being levied by the corporation. A limited apportionme nt
1824 company shall collect from its policyholders any emergency
1825 assessment imposed under sub-subparagraph (b)3.e. The plan must
Page 73 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1826 provide that, if the office determines that any regular
1827 assessment will result in an impairment of the surplus of a
1828 limited apportionment company, the office may direct that all or
1829 part of such assessment be deferred as provided in subparagraph
1830 (q)4. However, an emergency assessment to be collected from
1831 policyholders under sub-subparagraph (b)3.e. may not be limited
1832 or deferred; or
1833 b. With respect to the Citizens account, if established by
1834 the corporation pursuant to sub-subparagraph (b)2.b., any
1835 assessable insurer with a surplus as to policyholders of $25
1836 million or less and writing 25 percent or more of its total
1837 countrywide property insurance premiums in this state may
1838 petition the office, within the first 90 days of each calendar
1839 year, to qualify as a limited apportionment company. A limited
1840 apportionment company shall collect from its policyholders any
1841 emergency assessment imposed under sub-subparagraph (b)5.c. An
1842 emergency assessment to be collected from policyholders under
1843 sub-subparagraph (b)5.c. may not be limited or deferred.
1844 13.14. Must provide that the corporation appoint as its
1845 licensed agents only those agents who throughout such
1846 appointments also hold an appointment as defined in s. 626.015
1847 by at least three insurers an insurer who are is authorized to
1848 write and are is actually writing or renewing personal lines
1849 residential property coverage, commercial residential property
1850 coverage, or commercial nonresidential property coverage within
Page 74 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1851 the state.
1852 14.15. Must provide a premium payment plan option to its
1853 policyholders which, at a minimum, allows for quarterly and
1854 semiannual payment of premiums. A monthly payment plan m ay, but
1855 is not required to, be offered.
1856 15.16. Must limit coverage on mobile homes or manufactured
1857 homes built before 1994 to actual cash value of the dwelling
1858 rather than replacement costs of the dwelling.
1859 16.17. Must provide coverage for manufactured or mobile
1860 home dwellings. Such coverage must also include the following
1861 attached structures:
1862 a. Screened enclosures that are aluminum framed or
1863 screened enclosures that are not covered by the same or
1864 substantially the same materials as those of the prim ary
1865 dwelling;
1866 b. Carports that are aluminum or carports that are not
1867 covered by the same or substantially the same materials as those
1868 of the primary dwelling; and
1869 c. Patios that have a roof covering that is constructed of
1870 materials that are not the same or substantially the same
1871 materials as those of the primary dwelling.
1872
1873 The corporation shall make available a policy for mobile homes
1874 or manufactured homes for a minimum insured value of at least
1875 $3,000.
Page 75 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1876 17.18. May provide such limits of coverage as the board
1877 determines, consistent with the requirements of this subsection.
1878 18.19. May require commercial property to meet specified
1879 hurricane mitigation construction features as a condition of
1880 eligibility for coverage.
1881 19.20. Must provide that new or renewal policies issued by
1882 the corporation on or after January 1, 2012, which cover
1883 sinkhole loss do not include coverage for any loss to
1884 appurtenant structures, driveways, sidewalks, decks, or patios
1885 that are directly or indirectly caused by sinkhole activit y. The
1886 corporation shall exclude such coverage using a notice of
1887 coverage change, which may be included with the policy renewal,
1888 and not by issuance of a notice of nonrenewal of the excluded
1889 coverage upon renewal of the current policy.
1890 20.a.21.a. As of January 1, 2012, unless the Citizens
1891 account has been established pursuant to sub-subparagraph
1892 (b)2.b., Must require that the agent obtain from an applicant
1893 for coverage from the corporation the following an
1894 acknowledgment signed by the applicant, which includes, at a
1895 minimum, the following statement:
1896 ACKNOWLEDGMENT OF POTENTIAL SURCHARGE
1897 AND ASSESSMENT LIABILITY:
1898 1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
1899 CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
1900 DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
Page 76 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1901 MY POLICY COULD BE SUBJECT TO SURCHARGES AND ASSESSMENTS, WHICH
1902 WILL BE DUE AND PAYABLE UPON RENEWAL, CANCELLATION, OR
1903 TERMINATION OF THE POLICY, AND THAT THE SURCHARGES AND
1904 ASSESSMENTS COULD BE AS HIGH AS 25 45 PERCENT OF MY PREMIUM, OR
1905 A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA LEGISLATURE.
1906 2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
1907 SURCHARGE, WHICH COULD BE AS HIGH AS 15 45 PERCENT OF MY
1908 PREMIUM, BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND
1909 THAT TO BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY
1910 TO OBTAIN PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR
1911 RENEWING COVERAGE WITH CITIZENS. I UNDERSTAND THAT PRIVATE
1912 MARKET INSURANCE RATES ARE REGULATED AND APPROVED BY THE STATE.
1913 3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
1914 ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
1915 INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
1916 FLORIDA LEGISLATURE.
1917 4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
1918 CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
1919 STATE OF FLORIDA.
1920 b. The corporation must require, if it has established the
1921 Citizens account pursuant to sub-subparagraph (b)2.b., that the
1922 agent obtain from an applicant for coverage from the corporation
1923 the following acknowledgment signed by the applicant, which
1924 includes, at a minimum, the following statement:
1925 ACKNOWLEDGMENT OF POTENTIAL SURCHARGE
Page 77 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1926 AND ASSESSMENT LIABILITY:
1927 1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
1928 CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
1929 DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
1930 MY POLICY COULD BE SUBJECT TO SURCHARGES AND ASSESSMENTS, WHICH
1931 WILL BE DUE AND PAYABLE UPON RENEWAL, CANCELLATION, OR
1932 TERMINATION OF THE POLICY, AND THAT THE SURCHARGES AND
1933 ASSESSMENTS COULD BE AS HIGH AS 25 PERCENT OF MY PREMIUM, OR A
1934 DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA LEGISLATURE.
1935 2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
1936 SURCHARGE, WHICH COULD BE AS HIGH AS 15 PERCENT OF MY PREMIUM,
1937 BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND THAT TO
1938 BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN
1939 PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR RENEWING COVERAGE
1940 WITH CITIZENS. I UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES
1941 ARE REGULATED AND APPROVED BY THE STATE.
1942 3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
1943 ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
1944 INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
1945 FLORIDA LEGISLATURE.
1946 4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
1947 CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
1948 STATE OF FLORIDA.
1949 b.c. The corporation shall maintain, in electronic format
1950 or otherwise, a copy of the applicant's signed acknowledgment
Page 78 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1951 and provide a copy of the statement to the policyholder as part
1952 of the first renewal after the effective date of sub-
1953 subparagraph a. or sub-subparagraph b., as applicable.
1954 c.d. The signed acknowledgment form creates a conclusive
1955 presumption that the policyholder understood and accepted his or
1956 her potential surcharge and assessment liability as a
1957 policyholder of the corporation.
1958 (d)1. All prospective employees for senior management
1959 positions, as defined by the plan of operation, are subject to
1960 background checks as a prerequisite for employment. The office
1961 shall conduct the background checks pursuant to ss. 624.34,
1962 624.404(3), and 628.261.
1963 2. On or before July 1 of each year, employees of the
1964 corporation must sign and submit a statement attesting that they
1965 do not have a conflict of interest, as defined in part III of
1966 chapter 112. As a condition of employment, all prospective
1967 employees must sign and submit to the corporation a conflict -of-
1968 interest statement.
1969 3. The executive director, senior managers, and members of
1970 the board of governors are subject to part III of chapter 112,
1971 including, but not limited to, the code of ethics and public
1972 disclosure and reporting of financial interests, pursuant to s.
1973 112.3145. For purposes of applying part III of chapter 112 to
1974 activities of the executive director, senior managers, and
1975 members of the board of governors, those persons shall be
Page 79 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
1976 considered public officers or employees and the corporation
1977 shall be considered their agency. Notwithstanding s.
1978 112.3143(2), a board member may not vote on any measure that
1979 would inure to his or her special private gain or loss; that he
1980 or she knows would inure to the special private gain or loss of
1981 any principal by whom he or she is retained or to the parent
1982 organization or subsidiary of a corporate principal by which he
1983 or she is retained, other than an agency as defined in s.
1984 112.312; or that he or she knows would inure to the special
1985 private gain or loss of a relative or business associate of the
1986 public officer. Before the vote is taken, such memb er shall
1987 publicly state to the assembly the nature of his or her interest
1988 in the matter from which he or she is abstaining from voting
1989 and, within 15 days after the vote occurs, disclose the nature
1990 of his or her interest as a public record in a memorandum filed
1991 with the person responsible for recording the minutes of the
1992 meeting, who shall incorporate the memorandum in the minutes.
1993 Senior managers and board members are also required to file such
1994 disclosures with the Commission on Ethics and the Office of
1995 Insurance Regulation. The executive director of the corporation
1996 or his or her designee shall notify each existing and newly
1997 appointed member of the board of governors and senior managers
1998 of their duty to comply with the reporting requirements of part
1999 III of chapter 112. At least quarterly, the executive director
2000 or his or her designee shall submit to the Commission on Ethics
Page 80 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2001 a list of names of the senior managers and members of the board
2002 of governors who are subject to the public disclosure
2003 requirements under s. 112.3145.
2004 4. Notwithstanding s. 112.3148, s. 112.3149, or any other
2005 provision of law, an employee or board member may not knowingly
2006 accept, directly or indirectly, any gift or expenditure from a
2007 person or entity, or an employee or representative of s uch
2008 person or entity, which has a contractual relationship with the
2009 corporation or who is under consideration for a contract. An
2010 employee or board member who fails to comply with subparagraph
2011 3. or this subparagraph is subject to penalties provided under
2012 ss. 112.317 and 112.3173.
2013 5. Any senior manager of the corporation who is employed
2014 on or after January 1, 2007, regardless of the date of hire, who
2015 subsequently retires or terminates employment is prohibited from
2016 representing another person or entity before the corporation for
2017 2 years after retirement or termination of employment from the
2018 corporation.
2019 6. The executive director, members of the board of
2020 governors, and senior managers of the corporation are prohibited
2021 from having any employment or contractual relationship for 2
2022 years after retirement from or termination of service to the
2023 corporation with an insurer that has entered into a take -out
2024 bonus agreement with the corporation.
2025 (e) The corporation is subject to s. 287.057 for the
Page 81 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2026 purchase of commodities and contractual services except as
2027 otherwise provided in this paragraph. Services provided by
2028 tradepersons or technical experts to assist a licensed adjuster
2029 in the evaluation of individual claims are not subject to the
2030 procurement requirements of this section. Additionally, the
2031 procurement of financial services providers and underwriters
2032 must be made pursuant to s. 627.3513. Contracts for goods or
2033 services valued at or more than $100,000 are subject to approval
2034 by the board.
2035 1. The corporation is an agency for purposes of s.
2036 287.057, except that, for purposes of s. 287.057(24), the
2037 corporation is an eligible user.
2038 a. The authority of the Department of Management Services
2039 and the Chief Financial Officer under s. 287.057 extends to the
2040 corporation as if the corporation were an agency.
2041 b. The executive director of the corporation is the agency
2042 head under s. 287.057, except for resolution of bid protests for
2043 which the board would serve as the agency head. The executive
2044 director may assign or appoint a designee to act on his or her
2045 behalf.
2046 2. The corporation must provide notice of a decision or
2047 intended decision concerning a solicitation, contract award, or
2048 exceptional purchase by electronic posting. Such notice must
2049 contain the following statement: "Failure to file a protest
2050 within the time prescribed in this section constitutes a waiver
Page 82 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2051 of proceedings."
2052 a. A person adversely affected by the corporation's
2053 decision or intended decision to award a contract pursuant to s.
2054 287.057(1) or (3)(c) who elects to challenge the decision must
2055 file a written notice of protest with the executive director of
2056 the corporation within 72 hours after the corporation posts a
2057 notice of its decision or intended decision. For a protest of
2058 the terms, conditions, and specifications contained in a
2059 solicitation, including provisions governing the methods for
2060 ranking bids, proposals, replies, awarding contracts, reserving
2061 rights of further negotiation, or modifying or amending any
2062 contract, the notice of protest must be filed in writing within
2063 72 hours after posting the solicitation. Saturdays, Sundays, and
2064 state holidays are excluded in the computation of the 72 -hour
2065 time period.
2066 b. A formal written protest must be filed within 10 days
2067 after the date the notice of protest is filed. The formal
2068 written protest must state with particularity the facts and law
2069 upon which the protest is based. Upon receipt of a formal
2070 written protest that has been timely filed, the corporation must
2071 stop the solicitation or contract award process until the
2072 subject of the protest is resolved by final board action unless
2073 the executive director sets forth in writing particular facts
2074 and circumstances that require the continuance of the
2075 solicitation or contract award process without delay in order to
Page 83 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2076 avoid an immediate and serious danger to the public health,
2077 safety, or welfare.
2078 (I) The corporation must provide an opportunity to resolve
2079 the protest by mutual agreement between the parties within 7
2080 business days after receipt of the formal written protest.
2081 (II) If the subject of a protest is not resolved by mutual
2082 agreement within 7 business days, the corporation's board must
2083 transmit the protest to the Division of Administrative Hearings
2084 and contract with the division to conduct a hearing to determine
2085 the merits of the protest and to issue a recommended order. The
2086 contract must provide for the corporation to reimburse the
2087 division for any costs incurred by the division for court
2088 reporters, transcript preparation, travel, facility rental, and
2089 other customary hearing costs in the manner set forth i n s.
2090 120.65(9). The division has jurisdiction to determine the facts
2091 and law concerning the protest and to issue a recommended order.
2092 The division's rules and procedures apply to these proceedings;
2093 the division's applicable bond requirements do not apply . The
2094 protest must be heard by the division at a publicly noticed
2095 meeting in accordance with procedures established by the
2096 division.
2097 c. In a protest of an invitation-to-bid or request-for-
2098 proposals procurement, submissions made after the bid or
2099 proposal opening which amend or supplement the bid or proposal
2100 may not be considered. In protesting an invitation-to-negotiate
Page 84 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2101 procurement, submissions made after the corporation announces
2102 its intent to award a contract, reject all replies, or withdraw
2103 the solicitation that amends or supplements the reply may not be
2104 considered. Unless otherwise provided by law, the burden of
2105 proof rests with the party protesting the corporation's action.
2106 In a competitive-procurement protest, other than a rejection of
2107 all bids, proposals, or replies, the administrative law judge
2108 must conduct a de novo proceeding to determine whether the
2109 corporation's proposed action is contrary to the corporation's
2110 governing statutes, the corporation's rules or policies, or the
2111 solicitation specifications. The standard of proof for the
2112 proceeding is whether the corporation's action was clearly
2113 erroneous, contrary to competition, arbitrary, or capricious. In
2114 any bid-protest proceeding contesting an intended corporation
2115 action to reject all bids, proposals, or replies, the standard
2116 of review by the board is whether the corporation's intended
2117 action is illegal, arbitrary, dishonest, or fraudulent.
2118 d. Failure to file a notice of protest or failure to file
2119 a formal written protest constitutes a waiver of proceedings.
2120 3. The board, acting as agency head or his or her
2121 designee, shall consider the recommended order of an
2122 administrative law judge in a public meeting and take final
2123 action on the protest. Any further legal remedy lies with the
2124 First District Court of Appeal.
2125 (f) The corporation is subject to the provisions of
Page 85 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2126 chapter 255.
2127 (g) The board shall determine whether it is more cost-
2128 effective and in the best interests of the corporation to use
2129 legal services provided by in-house attorneys employed by the
2130 corporation rather than contracting with outside counsel. In
2131 making such determination, the board shall document its findings
2132 and shall consider: the expertise needed; whether time
2133 commitments exceed in-house staff resources; whether local
2134 representation is needed; the travel, lodging and other costs
2135 associated with in-house representation; and such other factors
2136 that the board determines are relevant.
2137 (h) The corporation may not retain a lobbyist to represent
2138 it before the legislative branch or executive branch. However,
2139 full-time employees of the corporation may register as lobbyists
2140 and represent the corporation before the legislative branch or
2141 executive branch.
2142 (i)1. The Office of the Internal Auditor is established
2143 within the corporation to provide a central point for
2144 coordination of and responsibility for activities that promote
2145 accountability, integrity, and efficiency to the policyholders
2146 and to the taxpayers of this state. The internal auditor shall
2147 be appointed by the board of governors, shall report to and be
2148 under the general supervision of the board of governors, and is
2149 not subject to supervision by an employee of the corporation.
2150 Administrative staff and support shall be provided by the
Page 86 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2151 corporation. The internal auditor shall be appointed without
2152 regard to political affiliation. It is the duty and
2153 responsibility of the internal auditor to:
2154 a. Provide direction for, supervise, conduct, and
2155 coordinate audits, investigations, and management reviews
2156 relating to the programs and operations of the corporation.
2157 b. Conduct, supervise, or coordinate other activities
2158 carried out or financed by the corporation for the purpose of
2159 promoting efficiency in the administration of, or preventing and
2160 detecting fraud, abuse, and mismanagement in, its programs and
2161 operations.
2162 c. Submit final audit reports, reviews, or investigative
2163 reports to the board of governors, the executive director, the
2164 members of the Financial Services Commission, and the President
2165 of the Senate and the Speaker of the House of Representatives.
2166 d. Keep the board of governors informed concerning fraud,
2167 abuses, and internal control deficiencies relating to programs
2168 and operations administered or financed by the corporation,
2169 recommend corrective action, and report on the progress made in
2170 implementing corrective action.
2171 e. Cooperate and coordinate activities with the
2172 corporation's inspector general.
2173 2. On or before February 15, the internal auditor shall
2174 prepare an annual report evaluating the effectiveness of the
2175 internal controls of the corporation and providing
Page 87 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2176 recommendations for corrective action, if necessary, and
2177 summarizing the audits, reviews, and investigations conducted by
2178 the office during the preceding fiscal year. The final report
2179 shall be furnished to the board of governors and the executive
2180 director, the President of the Senate, the Speaker of the House
2181 of Representatives, and the Financial Services Commission.
2182 (j) All records of the corporation, except as otherwise
2183 provided by law, are subject to the record retention
2184 requirements of s. 119.021.
2185 (k)1. The corporation shall establish and maintain a unit
2186 or division to investigate possible fraudulent claims by
2187 insureds or by persons making claims for services or repairs
2188 against policies held by insureds; or it may contract with
2189 others to investigate possible fraudulent claims for services or
2190 repairs against policies held by the corporation pursuant to s.
2191 626.9891. The corporation must comply with reporting
2192 requirements of s. 626.9891. An employee of the corporatio n
2193 shall notify the corporation's Office of the Inspector General
2194 and the Division of Investigative and Forensic Services within
2195 48 hours after having information that would lead a reasonable
2196 person to suspect that fraud may have been committed by any
2197 employee of the corporation.
2198 2. The corporation shall establish a unit or division
2199 responsible for receiving and responding to consumer complaints,
2200 which unit or division is the sole responsibility of a senior
Page 88 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2201 manager of the corporation.
2202 (l) The office shall conduct a comprehensive market
2203 conduct examination of the corporation every 2 years to
2204 determine compliance with its plan of operation and internal
2205 operations procedures. The first market conduct examination
2206 report shall be submitted to the President of the Senate and the
2207 Speaker of the House of Representatives no later than February
2208 1, 2009. Subsequent reports shall be submitted on or before
2209 February 1 every 2 years thereafter.
2210 (m) The Auditor General shall conduct an operational audit
2211 of the corporation every 3 years to evaluate management's
2212 performance in administering laws, policies, and procedures
2213 governing the operations of the corporation in an efficient and
2214 effective manner. The scope of the review shall include, but is
2215 not limited to, evaluating claims handling, customer service,
2216 take-out programs and bonuses, financing arrangements,
2217 procurement of goods and services, internal controls, and the
2218 internal audit function. The initial audit must be completed by
2219 February 1, 2009.
2220 (n)1. Rates for coverage provided by the corporation must
2221 be actuarially sound pursuant to s. 627.062 and not competitive
2222 with approved rates charged in the admitted voluntary market so
2223 that the corporation functions as a residual market mechanism to
2224 provide insurance only when insurance cannot be procured in the
2225 voluntary market, except as otherwise provided in this
Page 89 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2226 paragraph. The office shall provide the corporation such
2227 information as would be necessary to determine whether rates are
2228 competitive. The corporation shall file its recommended rates
2229 with the office at least annually. The corporation shall provide
2230 any additional information regarding the rates which the office
2231 requires. The office shall consider the recommendations of the
2232 board and issue a final order establishing the rates for the
2233 corporation within 45 days after the recommended rates are
2234 filed. The corporation may not pursue an administrative
2235 challenge or judicial review of the final order of the office.
2236 2. In addition to the rates otherwise determined pursuant
2237 to this paragraph, the corporation shall impose and collect an
2238 amount equal to the premium tax provided in s. 624.509 to
2239 augment the financial resources of the corporation.
2240 3. After the public hurricane loss-projection model under
2241 s. 627.06281 has been found to be accurate and reliable by the
2242 Florida Commission on Hurricane Loss Projection Methodology, the
2243 model shall be considered when establishing the windstorm
2244 portion of the corporation's rates. The corporation may use the
2245 public model results in combination with the results of private
2246 models to calculate rates for the windstorm portion of the
2247 corporation's rates. This subparagraph does not require or allow
2248 the corporation to adopt rates lower than the rates otherwise
2249 required or allowed by this paragraph.
2250 4. The corporation must make a recommended actuarially
Page 90 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2251 sound rate filing for each personal and commercial line of
2252 business it writes.
2253 5. Notwithstanding the board's recommended rates and the
2254 office's final order regarding the corporation's filed rates
2255 under subparagraph 1., the corporation shall annually implement
2256 a rate increase which, except for sinkhole coverage, does not
2257 exceed the following for any single policy issued by the
2258 corporation, excluding coverage changes and surcharges:
2259 a. Twelve percent for 2023.
2260 a.b. Thirteen percent for 2024.
2261 b.c. Fourteen percent for 2025.
2262 c.d. Fifteen percent for 2026 and all subsequent years.
2263
2264 With the exception of counties in which the office determines
2265 there is not a reasonable degree of competition, this
2266 subparagraph does not apply to a personal lines residential
2267 structure that has a dwelling replacement cost of $700,000 or
2268 more or a single condominium unit that has a combined dwelling
2269 and contents replacement cost of $700,000 or more.
2270 6. The corporation may also implement an increase to
2271 reflect the effect on the corporation of the cash buildup factor
2272 pursuant to s. 215.555(5)(b).
2273 7. The corporation's implementation of rates as prescribed
2274 in subparagraphs 5. and 8. shall cease for any line of bus iness
2275 written by the corporation upon the corporation's implementation
Page 91 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2276 of actuarially sound rates. Thereafter, the corporation shall
2277 annually make a recommended actuarially sound rate filing that
2278 is not competitive with approved rates in the admitted volun tary
2279 market for each commercial and personal line of business the
2280 corporation writes.
2281 8. The following new or renewal personal lines policies
2282 written on or after November 1, 2023, are not subject to the
2283 rate increase limitations in subparagraph 5., but m ay not be
2284 charged more than 50 percent above, and may not be charged nor
2285 less than, the prior year's established rate for the
2286 corporation:
2287 a. Policies that do not cover a primary residence;
2288 b. New policies under which the coverage for the insured
2289 risk, before the date of application with the corporation, was
2290 last provided by an insurer determined by the office to be
2291 unsound or an insurer placed in receivership under chapter 631;
2292 or
2293 c. Subsequent renewals of those policies, including the
2294 new policies in sub-subparagraph b., under which the coverage
2295 for the insured risk, before the date of application with the
2296 corporation, was last provided by an insurer determined by the
2297 office to be unsound or an insurer placed in receivership under
2298 chapter 631.
2299 9. As used in this paragraph, the term "primary residence"
2300 means the dwelling that is the policyholder's primary home or is
Page 92 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2301 a rental property that is the primary home of the tenant, and
2302 which the policyholder or tenant occupies for more than 9 months
2303 of each year.
2304 (o) If coverage in an account, or the Citizens account if
2305 established by the corporation, is deactivated pursuant to
2306 paragraph (p), coverage through the corporation shall be
2307 reactivated by order of the office only under one of the
2308 following circumstances:
2309 1. If the market assistance plan receives a minimum of 100
2310 applications for coverage within a 3-month period, or 200
2311 applications for coverage within a 1-year period or less for
2312 residential coverage, unless the market assistance plan provides
2313 a quotation from authorized admitted carriers at their approved
2314 filed rates for at least 90 percent of such applicants. Any
2315 market assistance plan application that is rejected because an
2316 individual risk is so hazardous as to be uninsurable using the
2317 criteria specified in subparagraph (c)8. shall not be included
2318 in the minimum percentage calculation provided herein. In the
2319 event that there is a legal or administrative challenge to a
2320 determination by the office that the conditions of this
2321 subparagraph have been met for eligibility for coverage in the
2322 corporation, any eligible risk may obtain coverage during the
2323 pendency of such challenge.
2324 2. In response to a state of emergency declared by the
2325 Governor under s. 252.36, the office may activate coverage by
Page 93 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2326 order for the period of the emergency upon a finding by the
2327 office that the emergency significantly affects the availability
2328 of residential property insurance.
2329 (p)1. The corporation shall file with the office quarterly
2330 statements of financial condition, an annual statement of
2331 financial condition, and audited financial statements in the
2332 manner prescribed by law. In addition, the corporation shall
2333 report to the office monthly on the types, premium, exposure,
2334 and distribution by county of its policies in force, and shall
2335 submit other reports as the office requires to carry out its
2336 oversight of the corporation.
2337 2. The activities of the corporation shall be reviewed at
2338 least annually by the office to determine whether coverage shall
2339 be deactivated in an account, or in the Citizens account if
2340 established by the corporation, on the basis that the conditions
2341 giving rise to its activation no longer exist.
2342 (q)1. The corporation shall certify to the office its
2343 needs for annual assessments as to a particular calendar year,
2344 and for any interim assessments that it deems to be necessary to
2345 sustain operations as to a particular year pending the receipt
2346 of annual assessments. Upon verification, the office shall
2347 approve such certification, and the corporation shall levy such
2348 annual or interim assessments. Such assessments shall be
2349 prorated, if authority to levy exists, as provided in paragraph
2350 (b). The corporation shall take all reasonable and prudent steps
Page 94 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2351 necessary to collect the amount of assessments due from each
2352 assessable insurer, including, if prudent, filing suit to
2353 collect the assessments, and the office may provide such
2354 assistance to the corporation it deems appropriate. If the
2355 corporation is unable to collect an assessment from any
2356 assessable insurer, the uncollected assessments shall be levied
2357 as an additional assessment against the assessable insurers and
2358 any assessable insurer required to pay an additional assessment
2359 as a result of such failure to pay shall have a cause of action
2360 against such nonpaying assessable insurer. Assessments shall be
2361 included as an appropriate factor in the making of rates. The
2362 failure of a surplus lines agent to collect and remit any
2363 regular or emergency assessment levied by the corporation is
2364 considered to be a violation of s. 626.936 and subjects the
2365 surplus lines agent to the penalties provided in that section.
2366 2. The governing body of any unit of local government, any
2367 residents of which are insured by the corporation, may issue
2368 bonds as defined in s. 125.013 or s. 166.101 from time to time
2369 to fund an assistance program, in conjunction with the
2370 corporation, for the purpose of defraying deficits of the
2371 corporation. In order to avoid needless and indiscriminate
2372 proliferation, duplication, and fragmentation of such assistance
2373 programs, any unit of local government, any residents of which
2374 are insured by the corporation, may provide for the payment of
2375 losses, regardless of whether or not the losses occurred within
Page 95 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2376 or outside of the territorial jurisdiction of the local
2377 government. Revenue bonds under this subparagraph may not be
2378 issued until validated pursuant to chapter 75, unless a state of
2379 emergency is declared by executive order or proclamation of the
2380 Governor pursuant to s. 252.36 making such findings as are
2381 necessary to determine that it is in the best interests of, and
2382 necessary for, the protection of the public health, safety, and
2383 general welfare of residents of this state and declaring it an
2384 essential public purpose to permit certain municipalities or
2385 counties to issue such bonds as will permit relief to claimants
2386 and policyholders of the corporation. Any such unit of local
2387 government may enter into such contracts with the corporation
2388 and with any other entity created pursuant to this subsection as
2389 are necessary to carry out this paragraph. Any bonds issued
2390 under this subparagraph shall be payable from and secured by
2391 moneys received by the corporation from emergency assessments
2392 under sub-subparagraph (b)3.c. (b)3.e., and assigned and pledged
2393 to or on behalf of the unit of local government for the benefit
2394 of the holders of such bonds. The funds, credit, property, and
2395 taxing power of the state or of the unit of local government
2396 shall not be pledged for the payment of such bonds.
2397 3.a. The corporation shall adopt one or more programs
2398 subject to approval by the office for the reduction of both new
2399 and renewal writings in the corporation. Beginning January 1,
2400 2008, any program the corporation adopts for the payment of
Page 96 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2401 bonuses to an insurer for each risk the insurer removes from the
2402 corporation shall comply with s. 627.3511(2) and may not exceed
2403 the amount referenced in s. 627.3511(2) for each risk removed.
2404 The corporation may consider any prudent and not unfairly
2405 discriminatory approach to reducing corporation writings, and
2406 may adopt a credit against assessment liability or other
2407 liability that provides an incentive for insurers to take risks
2408 out of the corporation and to keep risks out of the corporation
2409 by maintaining or increasing voluntary writings in counties or
2410 areas in which corporation risks are highly concentrated and a
2411 program to provide a formula under which an insurer voluntarily
2412 taking risks out of the corporation by maintaining or increasing
2413 voluntary writings will be relieved wholly or partially from
2414 assessments under sub-subparagraph (b)3.a. However, any "take-
2415 out bonus" or payment to an insurer must be conditioned on the
2416 property being insured for at least 5 years by the insurer,
2417 unless canceled or nonrenewed by the policyholder. If the policy
2418 is canceled or nonrenewed by the policyholder before the end of
2419 the 5-year period, the amount of the take-out bonus must be
2420 prorated for the time period the policy was insured. When the
2421 corporation enters into a contractual agreement for a take -out
2422 plan, the producing agent of record of the corporation policy is
2423 entitled to retain any unearned commission on such policy, and
2424 the insurer shall either:
2425 (I) Pay to the producing agent of record of the policy,
Page 97 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2426 for the first year, an amount which is the greater of the
2427 insurer's usual and customary commission for the type of policy
2428 written or a policy fee equal to the usual and customary
2429 commission of the corporation; or
2430 (II) Offer to allow the producing agent of record of the
2431 policy to continue servicing the policy for a period of not less
2432 than 1 year and offer to pay the agent the insurer's usual and
2433 customary commission for the type of policy written. If the
2434 producing agent is unwilling or unable to accept appointment by
2435 the new insurer for any reason, including to the failure of such
2436 agent to be licensed as surplus lines agent, the new insurer
2437 shall pay the agent in accordance with sub-sub-subparagraph (I).
2438 b. Any credit or exemption from regular assessments
2439 adopted under this subparagraph shall last no longer than the 3
2440 years following the cancellation or expiration of the policy by
2441 the corporation. With the approval of the office, the board may
2442 extend such credits for an additional year if the insurer
2443 guarantees an additional year of renewability for all policies
2444 removed from the corporation, or for 2 additional years if the
2445 insurer guarantees 2 additional years of renewability for all
2446 policies so removed.
2447 c. There shall be no credit, limitation, exemption, or
2448 deferment from emergency assessments to be collected from
2449 policyholders pursuant to sub-subparagraph (b)3.c. (b)3.e. or
2450 sub-subparagraph (b)5.c.
Page 98 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2451 4. The plan shall provide for the deferment, in whole or
2452 in part, of the assessment of an assessable insurer, other than
2453 an emergency assessment collected from policyholders pursuant to
2454 sub-subparagraph (b)3.e. or sub-subparagraph (b)5.c., if the
2455 office finds that payment of the assessment would endanger or
2456 impair the solvency of the insurer. In the event an assessment
2457 against an assessable insurer is deferred in whole or in part,
2458 the amount by which such assessment is deferred may be assessed
2459 against the other assessable insurers in a manner consistent
2460 with the basis for assessments set forth in paragraph (b).
2461 4.5. Effective July 1, 2007, in order to evaluate the
2462 costs and benefits of approved take-out plans, if the
2463 corporation pays a bonus or other payment to an insurer for an
2464 approved take-out plan, it shall maintain a record of the
2465 address or such other identifying information on the property or
2466 risk removed in order to track if and when the property or risk
2467 is later insured by the corporation.
2468 5.6. Any policy taken out, assumed, or removed from the
2469 corporation is, as of the effective date of the take-out,
2470 assumption, or removal, direct insurance issued by the insurer
2471 and not by the corporation, even if the corporation continues to
2472 service the policies. This subparagraph applies to polic ies of
2473 the corporation and not policies taken out, assumed, or removed
2474 from any other entity.
2475 6.7. For a policy taken out, assumed, or removed from the
Page 99 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2476 corporation, the insurer may, for a period of no more than 3
2477 years, continue to use any of the corporation's policy forms or
2478 endorsements that apply to the policy taken out, removed, or
2479 assumed without obtaining approval from the office for use of
2480 such policy form or endorsement.
2481 (r) Nothing in this subsection shall be construed to
2482 preclude the issuance of residential property insurance coverage
2483 pursuant to part VIII of chapter 626.
2484 (s)1. There shall be no liability on the part of, and no
2485 cause of action of any nature shall arise against, any
2486 assessable insurer or its agents or employees, the corporatio n
2487 or its agents or employees, members of the board of governors or
2488 their respective designees at a board meeting, corporation
2489 committee members, or the office or its representatives, for any
2490 action taken by them in the performance of their duties or
2491 responsibilities under this subsection. Such immunity does not
2492 apply to:
2493 a. Any of the foregoing persons or entities for any
2494 willful tort;
2495 b. The corporation or its producing agents for breach of
2496 any contract or agreement pertaining to insurance coverage;
2497 c. The corporation with respect to issuance or payment of
2498 debt;
2499 d. Any assessable insurer with respect to any action to
2500 enforce an assessable insurer's obligations to the corporation
Page 100 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2501 under this subsection; or
2502 e. The corporation in any pending or future action for
2503 breach of contract or for benefits under a policy issued by the
2504 corporation.
2505 2. The corporation shall manage its claim employees,
2506 independent adjusters, and others who handle claims to ensure
2507 they carry out the corporation's duty to its policyholders to
2508 handle claims carefully, timely, diligently, and in good faith,
2509 balanced against the corporation's duty to the state to manage
2510 its assets responsibly to minimize its assessment potential.
2511 (t) For the purposes of s. 199.183(1), the corporation
2512 shall be considered a political subdivision of the state and
2513 shall be exempt from the corporate income tax. The premiums,
2514 assessments, investment income, and other revenue of the
2515 corporation are funds received for providing property insurance
2516 coverage as required by this subsection, paying claims for
2517 Florida citizens insured by the corporation, securing and
2518 repaying debt obligations issued by the corporation, and
2519 conducting all other activities of the corporation, and shall
2520 not be considered taxes, fees, licenses, or charges for services
2521 imposed by the Legislature on individuals, businesses, or
2522 agencies outside state government. Bonds and other debt
2523 obligations issued by or on behalf of the corporation are not to
2524 be considered "state bonds" within the meaning of s. 215.58(8).
2525 The corporation is subject to the procurement provisions of
Page 101 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2526 chapter 287 as provided in paragraph (e), and policies and
2527 decisions of the corporation relating to incurring debt, levying
2528 of assessments and the sale, issuance, continuation, terms and
2529 claims under corporation policies, and all services relating
2530 thereto, are not subject to the provisions of chapter 120. The
2531 corporation is not required to obtain or to hold a certificate
2532 of authority issued by the office, nor is it required to
2533 participate as a member insurer of the Florida Insurance
2534 Guaranty Association. However, the corporation is required to
2535 pay, in the same manner as an authorized insurer, assessments
2536 levied by the Florida Insurance Guaranty Association. It is the
2537 intent of the Legislature that the tax exemptions provided in
2538 this paragraph will augment the financial resources of the
2539 corporation to better enable the corporation to fulfill its
2540 public purposes. Any debt obligations issued by the corporation,
2541 their transfer, and the income therefrom, including any profit
2542 made on the sale thereof, shall at all times be free from
2543 taxation of every kind by the state and any political
2544 subdivision or local unit or other instrumentality thereof;
2545 however, this exemption does not apply to any tax imposed by
2546 chapter 220 on interest, income, or profits on debt obligations
2547 owned by corporations other than the corporation.
2548 (u) Upon a determination by the office that the conditions
2549 giving rise to the establishment and activation of the
2550 corporation no longer exist, the corporation is dissolved. Upon
Page 102 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2551 dissolution, the assets of the corporation shall be applied
2552 first to pay all debts, liabilities, and obligations of the
2553 corporation, including the establishment of reasonable reserves
2554 for any contingent liabilities or obligations, and all remaining
2555 assets of the corporation shall become property of the state and
2556 shall be deposited in the Florida Hurricane Catastrophe Fund.
2557 However, no dissolution shall take effect as long as the
2558 corporation has bonds or other financial obligations outstanding
2559 unless adequate provision has been made for the payment of the
2560 bonds or other financial obligations pursuant to the documents
2561 authorizing the issuance of the bonds or other financial
2562 obligations.
2563 (v)1. Effective July 1, 2002, policies of the Residential
2564 Property and Casualty Joint Underwriting Association become
2565 policies of the corporation. All obligations, rights, assets and
2566 liabilities of the association, including bonds, note and debt
2567 obligations, and the financing documents pertaining to them
2568 become those of the corporation as of July 1, 2002. The
2569 corporation is not required to issue endorsements or
2570 certificates of assumption to insureds during the remaining term
2571 of in-force transferred policies.
2572 2. Effective July 1, 2002, policies of the Florida
2573 Windstorm Underwriting Association are transferred to the
2574 corporation and become policies of the corporation. All
2575 obligations, rights, assets, and liabilities of the association,
Page 103 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2576 including bonds, note and debt obligations, and the financing
2577 documents pertaining to them are transferred to and assumed by
2578 the corporation on July 1, 2002. The corporation is not required
2579 to issue endorsements or certificates of assumption to insureds
2580 during the remaining term of in-force transferred policies.
2581 3. The Florida Windstorm Underwriting Association and the
2582 Residential Property and Casualty Joint Underwriting Association
2583 shall take all actions necessary to further evidence the
2584 transfers and provide the documents and instruments of further
2585 assurance as may reasonably be requested by the corporation for
2586 that purpose. The corporation shall execute assumptions and
2587 instruments as the trustees or other parties to the financing
2588 documents of the Florida Windstorm Underwriting Association o r
2589 the Residential Property and Casualty Joint Underwriting
2590 Association may reasonably request to further evidence the
2591 transfers and assumptions, which transfers and assumptions,
2592 however, are effective on the date provided under this paragraph
2593 whether or not, and regardless of the date on which, the
2594 assumptions or instruments are executed by the corporation.
2595 Subject to the relevant financing documents pertaining to their
2596 outstanding bonds, notes, indebtedness, or other financing
2597 obligations, the moneys, investments, receivables, choses in
2598 action, and other intangibles of the Florida Windstorm
2599 Underwriting Association shall be credited to the coastal
2600 account of the corporation, and those of the personal lines
Page 104 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2601 residential coverage account and the commercial lin es
2602 residential coverage account of the Residential Property and
2603 Casualty Joint Underwriting Association shall be credited to the
2604 personal lines account and the commercial lines account,
2605 respectively, of the corporation.
2606 4. Effective July 1, 2002, a new applicant for property
2607 insurance coverage who would otherwise have been eligible for
2608 coverage in the Florida Windstorm Underwriting Association is
2609 eligible for coverage from the corporation as provided in this
2610 subsection.
2611 5. The transfer of all policies, obligations, rights,
2612 assets, and liabilities from the Florida Windstorm Underwriting
2613 Association to the corporation and the renaming of the
2614 Residential Property and Casualty Joint Underwriting Association
2615 as the corporation does not affect the coverage with respect to
2616 covered policies as defined in s. 215.555(2)(c) provided to
2617 these entities by the Florida Hurricane Catastrophe Fund. The
2618 coverage provided by the fund to the Florida Windstorm
2619 Underwriting Association based on its exposures as of June 30,
2620 2002, and each June 30 thereafter, unless the corporation has
2621 established the Citizens account, shall be redesignated as
2622 coverage for the coastal account of the corporation.
2623 Notwithstanding any other provision of law, the coverage
2624 provided by the fund to the Residential Property and Casualty
2625 Joint Underwriting Association based on its exposures as of June
Page 105 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2626 30, 2002, and each June 30 thereafter, unless the corporation
2627 has established the Citizens account, shall be transferred to
2628 the personal lines account and the commercial lines account of
2629 the corporation. Notwithstanding any other provision of law, the
2630 coastal account, unless the corporation has established the
2631 Citizens account, shall be treated, for all Florida Hurricane
2632 Catastrophe Fund purposes, as if it were a separate
2633 participating insurer with its own exposures, reimbursement
2634 premium, and loss reimbursement. Likewise, the personal lines
2635 and commercial lines accounts, unless the corporation has
2636 established the Citizens account, shall be viewed together, for
2637 all fund purposes, as if the two accounts were one and represent
2638 a single, separate participating insurer with its own exposures,
2639 reimbursement premium, and loss reimbursement. The coverage
2640 provided by the fund to the corporation shall constitute and
2641 operate as a full transfer of coverage from the Florida
2642 Windstorm Underwriting Association and Residential Property and
2643 Casualty Joint Underwriting Association to the corporation.
2644 (w) Notwithstanding any other provision of law:
2645 1. The pledge or sale of, the lien upon, and the security
2646 interest in any rights, revenues, or other assets of the
2647 corporation created or purported to be created pursuant to any
2648 financing documents to secure any bonds or other indebtedness of
2649 the corporation shall be and remain valid and enforceable,
2650 notwithstanding the commencement of and during the continuation
Page 106 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2651 of, and after, any rehabilitation, insolvency, liquidation,
2652 bankruptcy, receivership, conservatorship, reorganization, or
2653 similar proceeding against the corporation under th e laws of
2654 this state.
2655 2. The proceeding does not relieve the corporation of its
2656 obligation, or otherwise affect its ability to perform its
2657 obligation, to continue to collect, or levy and collect,
2658 assessments, policyholder surcharges or other surcharges under
2659 sub-subparagraph (b)3.j., or any other rights, revenues, or
2660 other assets of the corporation pledged pursuant to any
2661 financing documents.
2662 3. Each such pledge or sale of, lien upon, and security
2663 interest in, including the priority of such pledge, lien , or
2664 security interest, any such assessments, policyholder surcharges
2665 or other surcharges, or other rights, revenues, or other assets
2666 which are collected, or levied and collected, after the
2667 commencement of and during the pendency of, or after, any such
2668 proceeding shall continue unaffected by such proceeding. As used
2669 in this subsection, the term "financing documents" means any
2670 agreement or agreements, instrument or instruments, or other
2671 document or documents now existing or hereafter created
2672 evidencing any bonds or other indebtedness of the corporation or
2673 pursuant to which any such bonds or other indebtedness has been
2674 or may be issued and pursuant to which any rights, revenues, or
2675 other assets of the corporation are pledged or sold to secure
Page 107 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2676 the repayment of such bonds or indebtedness, together with the
2677 payment of interest on such bonds or such indebtedness, or the
2678 payment of any other obligation or financial product, as defined
2679 in the plan of operation of the corporation related to such
2680 bonds or indebtedness.
2681 4. Any such pledge or sale of assessments, revenues,
2682 contract rights, or other rights or assets of the corporation
2683 shall constitute a lien and security interest, or sale, as the
2684 case may be, that is immediately effective and attaches to such
2685 assessments, revenues, or contract rights or other rights or
2686 assets, whether or not imposed or collected at the time the
2687 pledge or sale is made. Any such pledge or sale is effective,
2688 valid, binding, and enforceable against the corporation or other
2689 entity making such pledge or sale, and valid and binding against
2690 and superior to any competing claims or obligations owed to any
2691 other person or entity, including policyholders in this state,
2692 asserting rights in any such assessments, revenues, or contract
2693 rights or other rights or assets to the extent set forth in and
2694 in accordance with the terms of the pledge or sale contained in
2695 the applicable financing documents, whether or not any such
2696 person or entity has notice of such pledge or sale and without
2697 the need for any physical delivery, recordation, filing, or
2698 other action.
2699 5. As long as the corporation has any bonds outstanding,
2700 the corporation may not file a voluntary petition under chapter
Page 108 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2701 9 of the federal Bankruptcy Code or such corresponding chapter
2702 or sections as may be in effect, from time to time, and a public
2703 officer or any organization, entity, or other person may not
2704 authorize the corporation to be or become a debtor under chapter
2705 9 of the federal Bankruptcy Code or such corresponding chapter
2706 or sections as may be in effect, from time to time, during any
2707 such period.
2708 6. If ordered by a court of competent jurisdiction, the
2709 corporation may assume policies or otherwise provide coverage
2710 for policyholders of an insurer placed in liquidation under
2711 chapter 631, under such forms, rates, terms, and conditions as
2712 the corporation deems appropriate, subject to approval by the
2713 office.
2714 (x)1. The following records of the corporation are
2715 confidential and exempt from the provisions of s. 119.07(1) and
2716 s. 24(a), Art. I of the State Constitution:
2717 a. Underwriting files, except that a policyholder or an
2718 applicant shall have access to his or her own underwriting
2719 files. Confidential and exempt underwriting file records may
2720 also be released to other governmental agencies upon written
2721 request and demonstration of need; such records held by the
2722 receiving agency remain confidential and exempt as provided
2723 herein.
2724 b. Claims files, until termination of all litigation and
2725 settlement of all claims arising out of the same incident,
Page 109 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2726 although portions of the claims files may remain exempt, as
2727 otherwise provided by law. Confidential and exempt claims file
2728 records may be released to other governmental agencies upon
2729 written request and demonstration of need; such records held by
2730 the receiving agency remain confidential and exempt as provided
2731 herein.
2732 c. Records obtained or generated by an internal auditor
2733 pursuant to a routine audit, until the audit is completed, or if
2734 the audit is conducted as part of an investigation, until the
2735 investigation is closed or ceases to be active. An investigation
2736 is considered "active" while the investigation is being
2737 conducted with a reasonable, good faith belief that it could
2738 lead to the filing of administrative, civil, or criminal
2739 proceedings.
2740 d. Matters reasonably encompassed in privileged attorney-
2741 client communications.
2742 e. Proprietary information licensed to the corporation
2743 under contract and the contract provides for the confidentiality
2744 of such proprietary information.
2745 f. All information relating to the medical condition or
2746 medical status of a corporation employee which is not relevant
2747 to the employee's capacity to perform his or her duties, except
2748 as otherwise provided in this paragraph. Information that is
2749 exempt shall include, but is not limited to, information
2750 relating to workers' compensation, insurance benefits, and
Page 110 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2751 retirement or disability benefits.
2752 g. Upon an employee's entrance into the employee
2753 assistance program, a program to assist any employee who has a
2754 behavioral or medical disorder, substance abuse problem, or
2755 emotional difficulty that affects the employee's job
2756 performance, all records relative to that participation shall be
2757 confidential and exempt from the provisions of s. 119.07(1) and
2758 s. 24(a), Art. I of the State Constitution, except as otherwise
2759 provided in s. 112.0455(11).
2760 h. Information relating to negotiations for financing,
2761 reinsurance, depopulation, or contractual services, until the
2762 conclusion of the negotiations.
2763 i. Minutes of closed meetings regarding underwriting
2764 files, and minutes of closed meetings regarding an open claims
2765 file until termination of all litigation and settlement of all
2766 claims with regard to that claim, except that information
2767 otherwise confidential or exempt by law shall be redacted.
2768 2. If an authorized insurer is considering underwriting a
2769 risk insured by the corporation, relevant underwriting files and
2770 confidential claims files may be released to the insurer
2771 provided the insurer agrees in writing, notarized and under
2772 oath, to maintain the confidentiality of such files. If a file
2773 is transferred to an insurer, that file is no longer a public
2774 record because it is not held by an agency subject to the
2775 provisions of the public records law. Underwriting files and
Page 111 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2776 confidential claims files may also be released to sta ff and the
2777 board of governors of the market assistance plan established
2778 pursuant to s. 627.3515, who must retain the confidentiality of
2779 such files, except such files may be released to authorized
2780 insurers that are considering assuming the risks to which th e
2781 files apply, provided the insurer agrees in writing, notarized
2782 and under oath, to maintain the confidentiality of such files.
2783 Finally, the corporation or the board or staff of the market
2784 assistance plan may make the following information obtained from
2785 underwriting files and confidential claims files available to an
2786 entity that has obtained a permit to become an authorized
2787 insurer, a reinsurer that may provide reinsurance under s.
2788 624.610, a licensed reinsurance broker, a licensed rating
2789 organization, a modeling company, a licensed surplus lines
2790 agent, or a licensed general lines insurance agent: name,
2791 address, and telephone number of the residential property owner
2792 or insured; location of the risk; rating information; loss
2793 history; and policy type. The receiving person must retain the
2794 confidentiality of the information received and may use the
2795 information only for the purposes of developing a take-out plan
2796 or a rating plan to be submitted to the office for approval or
2797 otherwise analyzing the underwriting of a risk or risks insured
2798 by the corporation on behalf of the private insurance market. A
2799 licensed surplus lines agent or a licensed general lines
2800 insurance agent may not use such information for the direct
Page 112 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2801 solicitation of policyholders.
2802 3. A policyholder who has filed suit against the
2803 corporation has the right to discover the contents of his or her
2804 own claims file to the same extent that discovery of such
2805 contents would be available from a private insurer in litigation
2806 as provided by the Florida Rules of Civil Procedure, the Florida
2807 Evidence Code, and other applicable law. Pursuant to subpoena, a
2808 third party has the right to discover the contents of an
2809 insured's or applicant's underwriting or claims file to the same
2810 extent that discovery of such contents would be available from a
2811 private insurer by subpoena as provided by the Florida Rules of
2812 Civil Procedure, the Florida Evidence Code, and other applicable
2813 law, and subject to any confidentiality protections requested by
2814 the corporation and agreed to by the seeking party or ordered by
2815 the court. The corporation may release confidential underwriting
2816 and claims file contents and information as it deems necessary
2817 and appropriate to underwrite or service insurance policies and
2818 claims, subject to any confidentiality protections deemed
2819 necessary and appropriate by the corporation.
2820 4. Portions of meetings of the corporation are exempt from
2821 the provisions of s. 286.011 and s. 24(b), Art. I of the State
2822 Constitution wherein confidential underwriting files or
2823 confidential open claims files are discussed. All portions of
2824 corporation meetings which are closed to the public shall be
2825 recorded by a court reporter. The court reporter shall record
Page 113 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2826 the times of commencement and termination of the meeting, all
2827 discussion and proceedings, the names of all persons present at
2828 any time, and the names of all persons speaking. No portion of
2829 any closed meeting shall be off the record. Subject to the
2830 provisions hereof and s. 119.07(1)(d)-(f), the court reporter's
2831 notes of any closed meeting shall be retained by the corporation
2832 for a minimum of 5 years. A copy of the transcript, less any
2833 exempt matters, of any closed meeting wherein claims are
2834 discussed shall become public as to individual claims after
2835 settlement of the claim.
2836 (y) It is the intent of the Legislature that the
2837 amendments to this subsection enacted in 2002 should, over time,
2838 reduce the probable maximum windstorm losses in the residual
2839 markets and the potential assessments to be levied on property
2840 insurers and policyholders statewide.
2841 (z) In enacting the provisions of this section, the
2842 Legislature recognizes that both the Florida Windstorm
2843 Underwriting Association and the Residential Property and
2844 Casualty Joint Underwriting Association have entered into
2845 financing arrangements that obligate each entity to service its
2846 debts and maintain the capacity to repay funds secured under
2847 these financing arrangements. It is the intent of the
2848 Legislature that nothing in this section be construed to
2849 compromise, diminish, or interfere with the rights of creditors
2850 under such financing arrangements. It is further the intent of
Page 114 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2851 the Legislature to preserve the obligations of the Florida
2852 Windstorm Underwriting Association and Residential Property and
2853 Casualty Joint Underwriting Association with regard to
2854 outstanding financing arrangements, with such obligations
2855 passing entirely and unchanged to the corporation and,
2856 specifically, to the Citizens applicable account of the
2857 corporation. So long as any bonds, notes, indebtedness, or other
2858 financing obligations of the Florida Windstorm Underwriting
2859 Association or the Residential Property and Casualty Joint
2860 Underwriting Association are outstanding, under the terms of the
2861 financing documents pertaining to them, the governing board of
2862 the corporation shall have and shall exercise the authority to
2863 levy, charge, collect, and receive all premiums, assessments,
2864 surcharges, charges, revenues, and receipts that the
2865 associations had authority to levy, charge, collect, or receive
2866 under the provisions of subsection (2) and this subsection,
2867 respectively, as they existed on January 1, 2002, to provide
2868 moneys, without exercise of the authority provided by this
2869 subsection, in at least the amounts, and by the times, as would
2870 be provided under those former provisions of subsection (2) or
2871 this subsection, respectively, so that the value, amount, and
2872 collectability of any assets, revenues, or revenue source
2873 pledged or committed to, or any lien thereon securing such
2874 outstanding bonds, notes, indebtedness, or other financing
2875 obligations will not be diminished, impaired, or adversely
Page 115 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2876 affected by the amendments made by this act and to permit
2877 compliance with all provisions of financing documents pertaining
2878 to such bonds, notes, indebtedness, or other financing
2879 obligations, or the security or credit enhancement for them, and
2880 any reference in this subsection to bonds, notes, indebtedness,
2881 financing obligations, or similar obligations, of the
2882 corporation shall include like instruments or contracts of the
2883 Florida Windstorm Underwriting Association and the Residential
2884 Property and Casualty Joint Underwriting Association to the
2885 extent not inconsistent with the provisions of the financing
2886 documents pertaining to them.
2887 (aa) Except as otherwise provided in this paragraph, the
2888 corporation shall require the securing and maintaining of flood
2889 insurance as a condition of coverage of a personal lines
2890 residential risk. The insured or applicant must execute a form
2891 approved by the office affirming that flood insurance is not
2892 provided by the corporation and that if flood insurance is not
2893 secured by the applicant or insured from an insurer other than
2894 the corporation and in addition to coverage by the corporation,
2895 the risk will not be eligible for coverage by the corporation.
2896 The corporation may deny coverage of a personal lines
2897 residential risk to an applicant or insured who refuses to
2898 secure and maintain flood insurance. The requirement to purchase
2899 flood insurance shall be implemented as follows:
2900 1. Except as provided in subparagraphs 2. and 3., all
Page 116 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2901 personal lines residential policyholders must have flood
2902 coverage in place for policies effective on or after:
2903 a. January 1, 2024, for a structure that has a dwelling
2904 replacement cost of $600,000 or more.
2905 b. January 1, 2025, for a structure that has a dwe lling
2906 replacement cost of $500,000 or more.
2907 c. January 1, 2026, for a structure that has a dwelling
2908 replacement cost of $400,000 or more.
2909 d. January 1, 2027, for all other personal lines
2910 residential property insured by the corporation.
2911 2. All personal lines residential policyholders whose
2912 property insured by the corporation is located within the
2913 special flood hazard area defined by the Federal Emergency
2914 Management Agency must have flood coverage in place:
2915 a. At the time of initial policy issuance for all new
2916 personal lines residential policies issued by the corporation on
2917 or after April 1, 2023.
2918 b. By the time of the policy renewal for all personal
2919 lines residential policies renewing on or after July 1, 2023.
2920 3. Policyholders are not required to purchase flood
2921 insurance as a condition for maintaining the following policies
2922 issued by the corporation:
2923 a. Policies that do not provide coverage for the peril of
2924 wind.
2925 b. Policies that provide coverage under a condominium unit
Page 117 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2926 owners form.
2927
2928 The flood insurance required under this paragraph must meet, at
2929 a minimum, the coverage available from the National Flood
2930 Insurance Program or the requirements of subparagraphs s.
2931 627.715(1)(a)1., 2., and 3.
2932 (bb) A salaried employee of the corporation who performs
2933 policy administration services subsequent to the effectuation of
2934 a corporation policy is not required to be licensed as an agent
2935 under the provisions of s. 626.112.
2936 (cc) There shall be no liability on the part of, and no
2937 cause of action of any nature shall arise against, producing
2938 agents of record of the corporation or employees of such agents
2939 for insolvency of any take-out insurer.
2940 (dd) The assets of the corporation may be invested and
2941 managed by the State Board of Administration.
2942 (ee) The office may establish a pilot program to offer
2943 optional sinkhole coverage in one or more counties or other
2944 territories of the corporation for the purpose of implementing
2945 s. 627.706, as amended by s. 30, chapter 2007-1, Laws of
2946 Florida. Under the pilot program, the corporation is not
2947 required to issue a notice of nonrenewal to exclude sinkhole
2948 coverage upon the renewal of existing policies, but may exclude
2949 such coverage using a notice of coverage change.
2950 (ff) In establishing replacement costs for coverage on a
Page 118 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2951 dwelling insured by the corporation, the corporation must accept
2952 a valuation from any of the following sources and must use the
2953 lowest valuation as the insured value of the dwelling, excluding
2954 land value, provided the valuation was completed within the 12
2955 months before the application or renewal date of coverage:
2956 1. A replacement cost valuation software that is
2957 specifically designed for use in establishing insurance
2958 replacement costs and that includes an itemized calculation of
2959 the cost of reconstruction;
2960 2. A replacement cost valuation prepared by a certified or
2961 licensed real estate appraiser under part II of chapter 475 that
2962 is specifically formulated to establish insurance replacement
2963 cost, rather than market value, and which includes an itemized
2964 calculation of the cost of reconstruction; or
2965 3. A replacement cost valuation prepared by a general,
2966 building, or residential contractor licensed under s. 489.113,
2967 or a professional engineer licensed under s. 471.015, which
2968 includes an itemized calculation of the total price of
2969 reconstruction.
2970 (gg) The Office of Inspector General is established within
2971 the corporation to provide a central point for coordination of
2972 and responsibility for activities that promote accountability,
2973 integrity, and efficiency. The office shall be headed by an
2974 inspector general, which is a senior management position that
2975 involves planning, coordinating, and performing activities
Page 119 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
2976 assigned to and assumed by the inspector general for the
2977 corporation.
2978 1. The inspector general shall be appointed by the
2979 Financial Services Commission and may only be removed from
2980 office by the commission. The inspector general shall be
2981 appointed without regard to political affiliation.
2982 a. At a minimum, the inspector general must possess a
2983 bachelor's degree from an accredited college or university and 8
2984 years of professional experience related to the duties of an
2985 inspector general as described in this paragraph, of which 5
2986 years must have been at a supervisory level.
2987 b. The inspector general shall report to, and be under the
2988 supervision of, the chair of the board of governors. The
2989 executive director or corporation staff may not prevent or
2990 prohibit the inspector general from initiating, carrying out, or
2991 completing any audit, review, evaluation, study, or
2992 investigation.
2993 2. The inspector general shall initiate, direct,
2994 coordinate, participate in, and perform audits, reviews,
2995 evaluations, studies, and investigations designed to assess
2996 management practices; compliance with laws, rules, and policies;
2997 and program effectiveness and efficiency. This includes:
2998 a. Conducting internal examinations; investigating
2999 allegations of fraud, waste, abuse, malfeasance, mismanagement,
3000 employee misconduct, or violations of corporation policies; and
Page 120 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
3001 conducting any other investigations as directed by the Financial
3002 Services Commission or as independently determined.
3003 b. Evaluating and recommending actions regarding security,
3004 the ethical behavior of personnel and vendors, and compliance
3005 with rules, laws, policies, and personnel matters; and rendering
3006 ethics opinions.
3007 c. Evaluating personnel and administrative policy
3008 compliance, management and operational matters, and human
3009 resources-related matters.
3010 d. Evaluating the application of a corporation code of
3011 ethics, providing reviews and recommendations on the design and
3012 content of ethics-related policy training courses, educating
3013 employees on the code and on appropriate conduct, and checking
3014 for compliance.
3015 e. Evaluating the activities of the senior management team
3016 and management's compliance with recommended solutions.
3017 f. Cooperating and coordinating activities with the chief
3018 of internal audit.
3019 g. Maintaining records of investigations and discipline in
3020 accordance with established policies, or as otherwise required.
3021 h. Supervising and directing the tasks and assignments of
3022 the staff assigned to assist with the inspector general's
3023 projects, including regular review and feedback regarding work
3024 in progress and providing recommendations regarding relevant
3025 training and staff development activities.
Page 121 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
3026 i. Directing, planning, preparing, and presenting interim
3027 and final reports and oral briefings which communicate the
3028 results of studies, reviews, and investigations.
3029 j. Providing the executive director with independent and
3030 objective assessments of programs and activities.
3031 k. Completing special projects, assignments, and other
3032 duties as requested by the Financial Services Commission.
3033 l. Reporting expeditiously to the Department of Law
3034 Enforcement or other law enforcement agencies, as appropriate,
3035 whenever the inspector general has reasonable grounds to believe
3036 there has been a violation of criminal law.
3037 (hh) The corporation shall prepare a report for each
3038 calendar year outlining both the statewide average and county -
3039 specific details of the loss ratio attributable to losses that
3040 are not catastrophic losses for residential coverage provided by
3041 the corporation, which information must be presented to the
3042 office and available for public inspection on the Internet
3043 website of the corporation by March 1 of the following calendar
3044 year.
3045 (ii) The corporation shall revise the programs adopted
3046 pursuant to sub-subparagraph (q)3.a. for personal lines
3047 residential policies to maximize policyholder options and
3048 encourage increased participation by insurers and agents. After
3049 January 1, 2017, a policy may not be taken out of the
3050 corporation unless the provisions of this paragraph are met.
Page 122 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
3051 1. The corporation must publish a periodic schedule of
3052 cycles during which an insurer may identify, and noti fy the
3053 corporation of, policies that the insurer is requesting to take
3054 out. A request must include a description of the coverage
3055 offered and an estimated premium and must be submitted to the
3056 corporation in a form and manner prescribed by the corporation.
3057 2. The corporation must maintain and make available to the
3058 agent of record a consolidated list of all insurers requesting
3059 to take out a policy. The list must include a description of the
3060 coverage offered and the estimated premium for each take -out
3061 request.
3062 3. If a policyholder receives a take-out offer from an
3063 authorized insurer, the risk is no longer eligible for coverage
3064 with the corporation unless the premium for coverage from the
3065 authorized insurer is more than 20 percent greater than the
3066 renewal premium for comparable coverage from the corporation
3067 pursuant to sub-subparagraph (c)5.c. This subparagraph applies
3068 to take-out offers that are part of an application to
3069 participate in depopulation submitted to the office on or after
3070 January 1, 2023. However, notwithstanding any other provision of
3071 law, this sub-subparagraph does not apply to a policy that does
3072 not cover a primary residence.
3073 4. The corporation must provide written notice to the
3074 policyholder and the agent of record regarding all insurers
3075 requesting to take out the policy. The notice must be in a
Page 123 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
3076 format prescribed by the corporation and include, for each take -
3077 out offer:
3078 a. The amount of the estimated premium;
3079 b. A description of the coverage; and
3080 c. A comparison of the estimated premium and coverage
3081 offered by the insurer to the estimated premium and coverage
3082 provided by the corporation.
3083 (jj) The corporation's budget allocations for the
3084 compensation of all corporation employees and any proposed raise
3085 for an individual employee exceeding 10 percent of that
3086 employee's current salary must be approved by the board of
3087 governors. The corporation must have an overall employee
3088 compensation plan approved by the board of governors.
3089 (kk) A corporation policyholder making a claim for water
3090 damage against the corporation has the burden of proving that
3091 the damage was not caused by flooding.
3092 (ll) The corporation may share its claims data with the
3093 National Insurance Crime Bureau, provided that the National
3094 Insurance Crime Bureau agrees to maintain the confidentiality of
3095 such documents as otherwise provided for in paragraph (x).
3096 (mm)(ll)1. In addition to any other method of alternative
3097 dispute resolution authorized by state law, the corporation may
3098 adopt policy forms that provide for the resolution of disputes
3099 regarding its claim determinations, including disputes regarding
3100 coverage for, or the scope and value of, a claim, in a
Page 124 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
3101 proceeding before the Division of Administrative Hearings. Any
3102 such policies are not subject to s. 627.70154. All proceedings
3103 in the Division of Administrative Hearings pursuant to such
3104 policies are subject to ss. 57.105 and 768.79 as if filed in the
3105 courts of this state and are not considered chapter 120
3106 administrative proceedings. Rule 1.442, Florida Rules of Civil
3107 Procedure, applies to any offer served pursuant to s. 768.79,
3108 except that, notwithstanding any provision in Rule 1.442,
3109 Florida Rules of Civil Procedure, to the contrary, an offer
3110 shall not be served earlier than 10 days after filing the
3111 request for hearing with the Division of Administrative Hearings
3112 and shall not be served later than 10 days before the date set
3113 for the final hearing. The administrative law judge in such
3114 proceedings shall award attorney fees and other relief pursuant
3115 to ss. 57.105 and 768.79. The corporation may not seek, and the
3116 office may not approve, a maximum hourly rate for attorney fees.
3117 2. The corporation may contract with the division to
3118 conduct proceedings to resolve disputes regarding its claim
3119 determinations as may be provided for in the applicable policies
3120 of insurance.
3121 (nn)(mm) The corporation may not determine that a risk is
3122 ineligible for coverage with the corporation solely because such
3123 risk has unrepaired damage caused by a covered loss that is the
3124 subject of a claim that has been filed with the Florida
3125 Insurance Guaranty Association. This paragraph applies to a risk
Page 125 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
3126 until the earlier of 24 months after the date the Florida
3127 Insurance Guaranty Association began servicing such claim or the
3128 Florida Insurance Guaranty Association closes the claim.
3129 (7) TRADEMARKS, COPYRIGHTS, OR PATENTS.—Notwithstanding
3130 any other provision of law to the contrary, the corporation may,
3131 in its own name:
3132 (a) Perform all things necessary to secure letters of
3133 patent, copyrights, or trademarks on any work products and
3134 enforce its rights therein.
3135 (b) License, lease, assign, or otherwise give written
3136 consent to any person, firm, or corporation for the manufacture
3137 or use thereof, on a royalty basis or for such other
3138 consideration as the corporation deems proper.
3139 (c) Take any action necessary, including legal action, to
3140 protect the manufacture or use thereof against improper or
3141 unlawful use or infringement.
3142 (d) Enforce the collection of any sums due the corporation
3143 for the manufacture or use thereof by any other party.
3144 (e) Sell any of the manufacture or use thereof and execute
3145 all instruments necessary to consummate any such sale.
3146 (f) Do all other acts necessary and proper for the
3147 execution of powers and duties conferred upon the corporation in
3148 order to administer this paragraph.
3149 Section 2. Subsections (3) and (5) and paragraphs (d),
3150 (e), and (f) of subsection (6) of section 627.3511, Florida
Page 126 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
3151 Statutes, are amended to read:
3152 627.3511 Depopulation of Citizens Property Insurance
3153 Corporation.—
3154 (3) EXEMPTION FROM DEFICIT ASSESSMENTS.—
3155 (a) The calculation of an insurer's assessment liability
3156 under s. 627.351(6)(b)3.a. shall, for an insurer that in any
3157 calendar year removes 50,000 or more risks from the Citizens
3158 Property Insurance Corporation, either by issuance of a policy
3159 upon expiration or cancellation of the corporation policy or by
3160 assumption of the corporation's obligations with respect to in-
3161 force policies, exclude such removed policies for the succeeding
3162 3 years, as follows:
3163 1. In the first year following removal of the risks, the
3164 risks are excluded from the calculation to the extent of 100
3165 percent.
3166 2. In the second year following removal of the risks, the
3167 risks are excluded from the calculation to the extent of 75
3168 percent.
3169 3. In the third year following removal of the risks, the
3170 risks are excluded from the calculation to the extent of 50
3171 percent.
3172
3173 If the removal of risks is accomplished through assumption of
3174 obligations with respect to in-force policies, the corporation
3175 shall pay to the assuming insurer all unearned premium with
Page 127 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
3176 respect to such policies less any policy acquisition costs
3177 agreed to by the corporation and assuming insurer. The term
3178 "policy acquisition costs" is defined as costs of issuance of
3179 the policy by the corporation which includes agent commissions,
3180 servicing company fees, and premium tax. This paragraph does not
3181 apply to an insurer that, at any time within 5 years before
3182 removing the risks, had a market share in excess of 0.1 percent
3183 of the statewide aggregate gross direct written premium for any
3184 line of property insurance, or to an affiliate of such an
3185 insurer. This paragraph does not apply unless either at least 40
3186 percent of the risks removed from the corporation are located in
3187 Miami-Dade, Broward, and Palm Beach Counties, or at least 30
3188 percent of the risks removed from the corporation are located in
3189 such counties and an additional 50 percent of the risks removed
3190 from the corporation are located in other coastal counties.
3191 (b) An insurer that first wrote personal lines residential
3192 property coverage in this state on or after July 1, 1994, is
3193 exempt from regular deficit assessments imposed pursuant to s.
3194 627.351(6)(b)3.a., but not emergency assessments collected from
3195 policyholders pursuant to s. 627.351(6)(b)3.e., of th e Citizens
3196 Property Insurance Corporation until the earlier of the
3197 following:
3198 1. The end of the calendar year in which it first wrote
3199 0.5 percent or more of the statewide aggregate direct written
3200 premium for any line of residential property coverage; or
Page 128 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
3201 2. December 31, 1997, or December 31 of the third year in
3202 which it wrote such coverage in this state, whichever is later.
3203 (c) Other than an insurer that is exempt under paragraph
3204 (b), an insurer that in any calendar year increases its total
3205 structure exposure subject to wind coverage by 25 percent or
3206 more over its exposure for the preceding calendar year is, with
3207 respect to that year, exempt from deficit assessments imposed
3208 pursuant to s. 627.351(6)(b)3.a., but not emergency assessments
3209 collected from policyholders pursuant to s. 627.351(6)(b)3.e.,
3210 of the Citizens Property Insurance Corporation attributable to
3211 such increase in exposure.
3212 (d) Any exemption or credit from regular assessments
3213 authorized by this section shall last no longer than 3 years
3214 following the cancellation or expiration of the policy by the
3215 corporation. With the approval of the office, the board may
3216 extend such credits for an additional year if the insurer
3217 guarantees an additional year of renewability for all policies
3218 removed from the corporation, or for 2 additional years if the
3219 insurer guarantees 2 additional years of renewability for all
3220 policies so removed.
3221 (5) APPLICABILITY.—
3222 (a) The take-out bonus provided by subsection (2) applies
3223 and the exemption from assessment provided by paragraph (3)(a)
3224 apply only if the corporation policy is replaced by a standard
3225 policy including wind coverage or, if consistent with the
Page 129 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
3226 insurer's underwriting rules filed with the office, a basic
3227 policy including wind coverage; however, for risks locat ed in
3228 areas where coverage through the coastal account of the
3229 corporation is available, the replacement policy need not
3230 provide wind coverage. The insurer must renew the replacement
3231 policy at approved rates on substantially similar terms for four
3232 additional 1-year terms, unless canceled or not renewed by the
3233 policyholder. If an insurer assumes the corporation's
3234 obligations for a policy, it must issue a replacement policy for
3235 a 1-year term upon expiration of the corporation policy and must
3236 renew the replacement policy at approved rates on substantially
3237 similar terms for four additional 1-year terms, unless canceled
3238 or not renewed by the policyholder. For each replacement policy
3239 canceled or nonrenewed by the insurer for any reason during the
3240 5-year coverage period, the insurer must remove from the
3241 corporation one additional policy covering a risk similar to the
3242 risk covered by the canceled or nonrenewed policy. In addition,
3243 the corporation must place the bonus moneys in escrow for 5
3244 years; such moneys may be released from escrow only to pay
3245 claims. If the policy is canceled or nonrenewed before the end
3246 of the 5-year period, the amount of the take-out bonus must be
3247 prorated for the time period the policy was insured. A take-out
3248 bonus provided by subsection (2) or subsection (6) is not
3249 premium income for purposes of taxes and assessments under the
3250 Florida Insurance Code and remains the property of the
Page 130 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
3251 corporation, subject to the prior security interest of the
3252 insurer under the escrow agreement until it is released from
3253 escrow; after it is released from escrow it is considered an
3254 asset of the insurer and credited to the insurer's capital and
3255 surplus.
3256 (b) It is the intent of the Legislature that an insurer
3257 eligible for the exemption under paragraph (3)(a) establish a
3258 preference in appointment of agents for those agents who lose a
3259 substantial amount of business as a result of risks being
3260 removed from the corporation.
3261 (6) COMMERCIAL RESIDENTIAL TAKE-OUT PLANS.—
3262 (d) The calculation of an insurer's regular assessment
3263 liability under s. 627.351(6)(b)3.a., but not emergency
3264 assessments collected from policyholders pursuant to s.
3265 627.351(6)(b)3.e., shall, with respect to commercial residential
3266 policies removed from the corporation under an approved take -out
3267 plan, exclude such removed policies for the succeeding 3 years,
3268 as follows:
3269 1. In the first year following removal of the policies,
3270 the policies are excluded from the calculation to the extent of
3271 100 percent.
3272 2. In the second year following removal of the policies,
3273 the policies are excluded from the calculation to the extent of
3274 75 percent.
3275 3. In the third year following removal of the policies,
Page 131 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
3276 the policies are excluded from the calculation to the extent of
3277 50 percent.
3278 (e) An insurer that first wrote commercial residential
3279 property coverage in this state on or after June 1, 1996, is
3280 exempt from regular assessments under s. 627.351(6)(b)3.a., but
3281 not emergency assessments collected from policyholders pursuant
3282 to s. 627.351(6)(b)3.e., with respect to commercial res idential
3283 policies until the earlier of:
3284 1. The end of the calendar year in which such insurer
3285 first wrote 0.5 percent or more of the statewide aggregate
3286 direct written premium for commercial residential property
3287 coverage; or
3288 2. December 31 of the third year in which such insurer
3289 wrote commercial residential property coverage in this state.
3290 (f) An insurer that is not otherwise exempt from regular
3291 assessments under s. 627.351(6)(b)3.a. with respect to
3292 commercial residential policies is, for any calendar year in
3293 which such insurer increased its total commercial residential
3294 hurricane exposure by 25 percent or more over its exposure for
3295 the preceding calendar year, exempt from regular assessments
3296 under s. 627.351(6)(b)3.a., but not emergency assessments
3297 collected from policyholders pursuant to s. 627.351(6)(b)3.e.,
3298 attributable to such increased exposure.
3299 Section 3. Subsections (5), (6), and (7) of section
3300 627.3518, Florida Statutes, are amended to read:
Page 132 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
3301 627.3518 Citizens Property Insurance Corporation
3302 policyholder eligibility clearinghouse program.—The purpose of
3303 this section is to provide a framework for the corporation to
3304 implement a clearinghouse program by January 1, 2014.
3305 (5) Notwithstanding s. 627.3517, any applicant for new
3306 coverage from the corporation is not eligible for coverage from
3307 the corporation if provided an offer of coverage from an
3308 authorized insurer through the program at a premium that is at
3309 or below the eligibility threshold for applicants for new
3310 coverage established in s. 627.351(6)(c)5.a. Whenever an offer
3311 of coverage for a personal lines risk is received for a
3312 policyholder of the corporation at renewal from an authorized
3313 insurer through the program which is at or below the eligibility
3314 threshold for policyholders of the corporation established in s.
3315 627.351(6)(c)5.a., the risk is not eligible for coverage with
3316 the corporation. In the event an offer of coverage for a new
3317 applicant is received from an authorized insurer through the
3318 program, and the premium offered exceeds the eligibility
3319 threshold for applicants for new coverage established in s.
3320 627.351(6)(c)5.a., the applicant or insured may elect to accept
3321 such coverage, or may elect to accept or continue coverage with
3322 the corporation. In the event an offer of coverage for a
3323 personal lines risk is received from an authorized insurer at
3324 renewal through the program, and the premium offered exceeds the
3325 eligibility threshold for policyholders of the corporation
Page 133 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
3326 established in s. 627.351(6)(c)5.a., the insured may elect to
3327 accept such coverage, or may elect to accept or continue
3328 coverage with the corporation. Section 627.351(6)(c)5.a.(I) does
3329 not apply to an offer of coverage from an authorized insurer
3330 obtained through the program. However, notwithstanding any other
3331 provision of law, this subsection does not apply to a policy
3332 that does not cover a primary residence. As used in this
3333 subsection, the term "primary residence" has the same meaning as
3334 in sub-subparagraph s. 627.351(6)(c)2.a.
3335 (6) Independent insurance agents submitting new
3336 applications for coverage or that are the agent of record on a
3337 renewal policy submitted to the program:
3338 (a) Are granted and must maintain ownership and the
3339 exclusive use of expirations, records, or other written or
3340 electronic information directly related to such applications or
3341 renewals written through the corporation or through an insurer
3342 participating in the program, notwithstanding s.
3343 627.351(6)(c)5.a.(I)(B) and (II)(B). Such ownership is granted
3344 for as long as the insured remains with the agency or until sold
3345 or surrendered in writing by the agent. Contracts with the
3346 corporation or required by the corporation must not amend,
3347 modify, interfere with, or limit such rights of ownership. Such
3348 expirations, records, or other written or electronic information
3349 may be used to review an application, issue a policy, or for any
3350 other purpose necessary for placing such business through the
Page 134 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
3351 program.
3352 (b) May not be required to be appointed by any insurer
3353 participating in the program for policies written solely through
3354 the program, notwithstanding the provisions of s. 626.112.
3355 (c) May accept an appointment from any insurer
3356 participating in the program.
3357 (d) May enter into either a standard or limited agency
3358 agreement with the insurer, at the insurer's option.
3359
3360 Applicants ineligible for coverage in accordance with subsection
3361 (5) remain ineligible if their independent agent is unwilling or
3362 unable for any reason, including the failure of such agent to be
3363 licensed as a surplus lines agent, to enter into a standard or
3364 limited agency agreement with an insurer participating in the
3365 program.
3366 (7) Exclusive agents submitting new applications for
3367 coverage or that are the agent of record on a renewal policy
3368 submitted to the program:
3369 (a) Must maintain ownership and the exclusive use of
3370 expirations, records, or other written or electronic information
3371 directly related to such applications or renewals written
3372 through the corporation or through an insurer participating in
3373 the program, notwithstanding s. 627.351(6)(c)5.a.(I)(B) and
3374 (II)(B). Contracts with the corporation or required by the
3375 corporation must not amend, modify, interfere with, or limit
Page 135 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
3376 such rights of ownership. Such expirations, records, or other
3377 written or electronic information may be used to review an
3378 application, issue a policy, or for any other purpose necessary
3379 for placing such business through the program.
3380 (b) May not be required to be appointed by any insurer
3381 participating in the program for policies written solely through
3382 the program, notwithstanding the provisions of s. 626.112.
3383 (c) Must only facilitate the placement of an offer of
3384 coverage from an insurer whose limited servicing agreement is
3385 approved by that exclusive agent's exclusive insurer.
3386 (d) May enter into a limited servicing agreement with the
3387 insurer making an offer of coverage, and only after the
3388 exclusive agent's insurer has approved the limited servicing
3389 agreement terms. The exclusive agent's insurer must approve a
3390 limited service agreement for the program for any insurer for
3391 which it has approved a service agreement for other purposes.
3392
3393 Applicants ineligible for coverage in accordance with subsection
3394 (5) remain ineligible if their exclusive agent is unwilling or
3395 unable for any reason, including the failure of such agent to be
3396 licensed as a surplus lines agent, to enter into a standard or
3397 limited agency agreement with an insurer making an offer of
3398 coverage to that applicant. This subsection does not apply to an
3399 authorized insurer that is an eligible surplus lines insurer.
3400 Section 4. Effective upon becoming law, paragraph (aa) of
Page 136 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
3401 subsection (6) of section 627.351, Florida Statutes, is amended
3402 to read:
3403 627.351 Insurance risk apportionment plans.—
3404 (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
3405 (aa) Except as otherwise provided in this paragraph, the
3406 corporation shall require the securing and maintaining of flood
3407 insurance as a condition of coverage of a personal lines
3408 residential risk. The insured or applicant must execute a form
3409 approved by the office affirming that flood insurance is not
3410 provided by the corporation and that if flood insurance is not
3411 secured by the applicant or insured from an insurer other than
3412 the corporation and in addition to coverage by the corporation,
3413 the risk will not be eligible for coverage by the corporation.
3414 The corporation may deny coverage of a personal lines
3415 residential risk to an applicant or insured who refuses to
3416 secure and maintain flood insurance. The requirement to purchase
3417 flood insurance shall be implemented as follows:
3418 1. Except as provided in subparagraphs 2. and 3., all
3419 personal lines residential policyholders must have flood
3420 coverage in place for policies effective on or after:
3421 a. January 1, 2024, for a structure that has a dwelling
3422 replacement cost of $600,000 or more.
3423 b. January 1, 2025, for a structure that has a dwelling
3424 replacement cost of $500,000 or more.
3425 c. January 1, 2026, for a structure that has a dwelling
Page 137 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
3426 replacement cost of $400,000 or more.
3427 d. January 1, 2027, for all other personal lines
3428 residential property insured by the corporation.
3429 2. All personal lines residential policyholders whose
3430 property insured by the corporation is located within the
3431 special flood hazard area defined by the Federal Emergency
3432 Management Agency must have flood coverage in place:
3433 a. At the time of initial policy issuance for all new
3434 personal lines residential policies issued by the corporation on
3435 or after April 1, 2023.
3436 b. By the time of the policy renewal for all personal
3437 lines residential policies renewing on or after July 1, 2023.
3438 3. Policyholders are not required to purchase flood
3439 insurance as a condition for maintaining the following policies
3440 issued by the corporation:
3441 a. Policies that do not provide coverage for the peril of
3442 wind.
3443 b. Policies that provide coverage under a condominium uni t
3444 owners form.
3445
3446 The flood insurance required under this paragraph must meet, at
3447 a minimum, the dwelling coverage available from the National
3448 Flood Insurance Program or the requirements of subparagraphs s.
3449 627.715(1)(a)1., 2., and 3.
3450 Section 5. Except as otherwise expressly provided in this
Page 138 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
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
PCS for HB 1503 ORIGINAL 2024
3451 act and except for this section, which shall take effect upon
3452 this act becoming a law, this act shall take effect July 1,
3453 2024.
Page 139 of 139
CODING: Words stricken are deletions; words underlined are additions.
V
File and source
- File
- 2024_3228_insurance-banking-subcommittee_proposed-committee-bills-pcbs_fn-pcs-for-hb-1503.pdf
- Size
- 620,375 bytes
- SHA-256
- a3d6aee36a06f3023cf3b9512192bb6ce25ac68f0342ffc21c80cc508334d1fc
- Our copy
- 2024_3228_insurance-banking-subcommittee_proposed-committee-bills-pcbs_fn-pcs-for-hb-1503.pdf
- Original
- No public link identified.