Bill Amendment: FL H0635 | 2013 | Regular Session

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: Insurance

Status: 2013-05-03 - Died in returning Messages, companion bill(s) passed, see CS/HB 157 (Ch. 2013-190), CS/HB 1191 (Ch. 2013-209), CS/CS/HB 7125 (Ch. 2013-160), SB 356 (Ch. 2013-125), CS/CS/SB 468 (Ch. 2013-66), CS/SB 1842 (Ch. 2013-101) [H0635 Detail]

Download: Florida-2013-H0635-Senate_Floor_Amendment_191194.html

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       Florida Senate - 2013                          SENATOR AMENDMENT
       Bill No. CS/CS/HB 635, 1st Eng.
       
       
       
       
       
       
                                Barcode 191194                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                 Floor: WD/2R          .                                
             04/26/2013 12:14 PM       .                                
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       Senator Brandes moved the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Between lines 1404 and 1405
    4  insert:
    5         Section 31. Section 627.3518, Florida Statutes, is created
    6  to read:
    7         627.3518 Citizens Property Insurance Corporation
    8  clearinghouse.—The Legislature recognizes that Citizens Property
    9  Insurance Corporation has authority to establish a clearinghouse
   10  as a separate organizational unit within the corporation for the
   11  purpose of determining the eligibility of new and renewal risks,
   12  excluding commercial residential risks, seeking coverage through
   13  the corporation, and facilitating the identification and
   14  diversion of ineligible applicants and current policyholders
   15  from the corporation into the voluntary insurance market. This
   16  section augments that authority by providing a framework for the
   17  corporation to implement such a program by January 1, 2014.
   18         (1) As used in this section, the term:
   19         (a) “Clearinghouse” means the clearinghouse diversion
   20  program created under this section.
   21         (b) “Corporation” means Citizens Property Insurance
   22  Corporation.
   23         (c) “Exclusive agent” means a licensed insurance agent who
   24  has agreed, by contract, to act exclusively for one company or
   25  group of affiliated insurance companies and is disallowed by the
   26  provisions of that contract to directly act for any other
   27  unaffiliated insurer absent express consent from the company or
   28  group of affiliated insurance companies.
   29         (d) “Independent agent” means a licensed insurance agent
   30  not described in paragraph (c).
   31         (2) In order to confirm eligibility with the corporation
   32  and to enhance access for new applicants and existing
   33  policyholders of the corporation to offers of coverage from
   34  authorized and eligible insurers, the corporation shall
   35  establish a clearinghouse for personal residential risks to
   36  facilitate the diversion of ineligible applicants and existing
   37  policyholders from the corporation into the voluntary insurance
   38  market. The corporation shall also develop appropriate
   39  procedures for facilitating the diversion of ineligible
   40  applicants and existing policyholders for commercial residential
   41  coverage into the private insurance market, and shall report
   42  such procedures to the President of the Senate and the Speaker
   43  of the House of Representatives by July 1, 2015.
   44         (3) The clearinghouse has the same rights and
   45  responsibilities in carrying out its duties as a licensed
   46  general lines agent, but is not required to employ or engage a
   47  licensed general lines agent or maintain an insurance agency
   48  license in order to solicit and place insurance coverage. In
   49  establishing the clearinghouse the corporation may:
   50         (a) Require all new applications and all policies due for
   51  renewal to be submitted to the clearinghouse in order to
   52  facilitate obtaining an offer of coverage from an authorized
   53  insurer before the binding or renewal of coverage by the
   54  corporation.
   55         (b) Employ or otherwise contract with individuals or other
   56  entities to provide administrative or professional services in
   57  order to carry out the plan within the corporation in accordance
   58  with the applicable purchasing requirements under s. 627.351.
   59         (c) Enter into a contract with an authorized or eligible
   60  insurer participating in the clearinghouse and accept an
   61  appointment by such insurer.
   62         (d) Provide funds to operate the clearinghouse. Insurers
   63  and agents participating in the clearinghouse are not required
   64  to pay a fee to offset or partially offset the cost of the
   65  clearinghouse, or to use the clearinghouse for the renewal of
   66  policies initially written through the clearinghouse.
   67         (e) Develop an enhanced application for obtaining
   68  information that will assist private insurers in determining
   69  whether to make an offer of coverage through the clearinghouse.
   70         (f) Before approving new applications for coverage by the
   71  corporation, require that every application be subject to a hold
   72  of 2 business days during which time an insurer participating in
   73  the clearinghouse may select the application for coverage. The
   74  insurer may issue a binder on any policy selected for coverage
   75  for at least 30 days but not more than 60 days.
   76         (4) An authorized or eligible insurer may participate in
   77  the clearinghouse; however, participation is not mandatory. An
   78  insurer that makes an offer of coverage to a new applicant or
   79  renews a policy for a policyholder through the clearinghouse:
   80         (a) Is not required to individually appoint an agent whose
   81  customer is underwritten and bound through the clearinghouse.
   82  Notwithstanding s. 626.112, an insurer is not required to
   83  appoint an agent on a policy underwritten through the
   84  clearinghouse if that policy remains with the insurer. An
   85  insurer may appoint an agent whose customer is initially
   86  underwritten and bound through the clearinghouse. If an insurer
   87  accepts a policy from an agent who is not appointed pursuant to
   88  this paragraph and thereafter accepts a subsequent policy from
   89  such agent, the provisions of s. 626.112 requiring appointment
   90  apply to the agent.
   91         (b) Must enter into a limited agency agreement with each
   92  agent who is not appointed in accordance with paragraph (a) and
   93  whose customer is underwritten and bound through the
   94  clearinghouse.
   95         (c) Must enter into its standard agency agreement with each
   96  agent whose customer is underwritten and bound through the
   97  clearinghouse if that agent has been appointed by the insurer
   98  pursuant to s. 626.112.
   99         (d) Must comply with s. 627.4133(2).
  100         (e) Must allow authorized or eligible insurers
  101  participating in the clearinghouse to participate through their
  102  single, designated managing general agent or broker; however,
  103  the provisions of paragraph (6)(a) regarding ownership, control,
  104  and use of the expirations apply.
  105         (f) Must pay the producing agent a commission equal to that
  106  paid by the corporation or the usual and customary commission
  107  paid by the insurer for that line of business, whichever is
  108  greater.
  109         (5)(a) Notwithstanding s. 627.3517, an applicant for new
  110  coverage is not eligible for coverage from the corporation if
  111  the applicant is offered coverage from an authorized insurer
  112  through the clearinghouse at a premium that is at or below the
  113  eligibility threshold established under s. 627.351(6)(c)5.a.
  114         (b) Notwithstanding any other provisions of law, if a
  115  renewing policyholder of the corporation is offered coverage
  116  from an authorized insurer for a personal lines or commercial
  117  lines risk at a premium that is no more than 15 percent above
  118  the corporation’s renewal premium for comparable coverage, the
  119  risk is not eligible for coverage with the corporation.
  120         (c) Notwithstanding s. 626.916(1), if an applicant for new
  121  or renewal coverage from the corporation does not receive an
  122  offer of coverage from an authorized insurer, the applicant may
  123  choose to accept an offer of coverage from an eligible insurer
  124  or its broker under ss. 626.913-626.937. Such offer of coverage
  125  from an eligible insurer does not make the risk ineligible for
  126  coverage with the corporation.
  127         (d) An applicant for new or renewal coverage from the
  128  corporation may choose to accept any offer of coverage received
  129  through the clearinghouse from an authorized insurer which is
  130  greater than 15 percent of the corporation’s renewal premium.
  131         (e) Section 627.351(6)(c)5.a.(I) and b.(I) do not apply to
  132  an offer of coverage from an authorized insurer obtained through
  133  the clearinghouse.
  134         (6) An independent agent who submits a new application for
  135  coverage or who is the agent of record on a renewal policy
  136  submitted to the clearinghouse:
  137         (a) Is granted and must maintain ownership and the
  138  exclusive use of expirations, records, or other written or
  139  electronic information directly related to such application or
  140  renewal written through the corporation or through an insurer
  141  participating in the clearinghouse, notwithstanding s.
  142  627.351(6)(c)5.a.(I)(B) and (II)(B). Such ownership is granted
  143  for as long as the insured remains with the agency or until sold
  144  or surrendered in writing by the agent. A contract with the
  145  corporation or required by the corporation may not amend,
  146  modify, interfere with, or limit such rights of ownership. Such
  147  expirations, records, or other written or electronic information
  148  may be used to review an application, issue a policy, or for any
  149  other purpose necessary for placing business through the
  150  clearinghouse.
  151         (b) Is not required to be appointed by an insurer
  152  participating in the clearinghouse for policies written solely
  153  through the clearinghouse, notwithstanding s. 626.112.
  154         (c) May accept an appointment from an insurer participating
  155  in the clearinghouse.
  156         (d) May enter into a standard or limited agency agreement
  157  with the insurer, at the insurer’s option.
  158  
  159  An applicant ineligible for coverage under subsection (5)
  160  remains ineligible if the applicant’s independent agent is
  161  unwilling or unable to enter into a standard or limited agency
  162  agreement with an insurer participating in the clearinghouse.
  163         (7) An exclusive agent who submits a new application for
  164  coverage or who is the agent of record on a renewal policy
  165  submitted to the clearinghouse:
  166         (a) Must maintain ownership and the exclusive use of
  167  expirations, records, or other written or electronic information
  168  directly related to such application or renewal written through
  169  the corporation or through an insurer participating in the
  170  clearinghouse, notwithstanding s. 627.351(6)(c)5.a.(I)(B) and
  171  (II)(B). A contract with the corporation or required by the
  172  corporation may not amend, modify, interfere with, or limit such
  173  rights of ownership. Such expirations, records, or other written
  174  or electronic information may be used to review an application,
  175  issue a policy, or for any other purpose necessary for placing
  176  business through the clearinghouse.
  177         (b) Is not required to be appointed by an insurer
  178  participating in the clearinghouse for policies written solely
  179  through the clearinghouse, notwithstanding s. 626.112.
  180         (c) Must only facilitate the placement of an offer of
  181  coverage from an insurer whose limited servicing agreement is
  182  approved by that exclusive agent’s exclusive insurer.
  183         (d) May enter into a limited servicing agreement with the
  184  insurer making an offer of coverage only after the exclusive
  185  agent’s insurer has approved the terms of the agreement. The
  186  exclusive agent’s insurer must approve a limited service
  187  agreement for the clearinghouse if the insurer has approved a
  188  service agreement with the agent for other purposes.
  189  
  190  An applicant is ineligible for coverage under subsection (5) if
  191  the applicant’s exclusive agent is unwilling or unable to enter
  192  into a standard or limited agency agreement with a participating
  193  insurer making an offer of coverage to that applicant.
  194         (8) Submission of an application to the clearinghouse for
  195  coverage by the corporation does not constitute the binding of
  196  coverage, and the failure of the clearinghouse to obtain an
  197  offer of coverage by an insurer is not considered acceptance or
  198  coverage of the risk by the corporation.
  199         (9) The clearinghouse may not include commercial
  200  nonresidential policies.
  201  
  202  ================= T I T L E  A M E N D M E N T ================
  203         And the title is amended as follows:
  204         Between lines 130 and 131
  205  insert:
  206         creating s. 627.3518, F.S.; authorizing the creation
  207         of a clearinghouse diversion program within the
  208         Citizens Property Insurance Corporation for
  209         identifying and diverting insurance coverage to
  210         private insurers; providing definitions; providing
  211         requirements and duties of the corporation, insurers,
  212         insureds, agents, and applicants; specifying criteria
  213         for coverage eligibility; providing that submission of
  214         an application to the clearinghouse does not
  215         constitute binding coverage by the corporation;
  216         prohibiting the clearinghouse from including
  217         commercial nonresidential policies;