Bill Text: FL S0876 | 2010 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Residential Property Insurance [CPSC]

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Failed) 2010-04-30 - Died in Committee on Policy & Steering Committee on Ways and Means [S0876 Detail]

Download: Florida-2010-S0876-Introduced.html

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Florida Senate - 2010                                     SB 876 
 
By Senator Bennett 
21-00469C-10                                           2010876__ 
1                        A bill to be entitled 
2         An act relating to residential property insurance; 
3         amending s. 627.062, F.S.; authorizing certain 
4         insurers to use a rate different from otherwise 
5         applicable filed rates; prohibiting the consideration 
6         of certain policies when making a specified 
7         calculation; preserving the authority of the Office of 
8         Insurance Regulation to disapprove rates as inadequate 
9         or disapprove a rate filing for using certain rating 
10         factors; authorizing the office to direct an insurer 
11         to make a specified type of rate filing under certain 
12         circumstances; amending s. 627.351, F.S.; providing 
13         requirements for attachment and payment of the 
14         Citizens policyholder surcharge; prohibiting the 
15         corporation from levying certain regular assessments 
16         until after levying the full amount of a Citizens 
17         policyholder surcharge; requiring the corporation’s 
18         plan of operation to require agents to obtain an 
19         acknowledgement of potential surcharge and assessment 
20         liability from applicants and policyholders; requiring 
21         the corporation to permanently retain a copy of such 
22         acknowledgments; specifying that the acknowledgement 
23         creates a conclusive presumption of understanding and 
24         acceptance by the policyholder; creating s. 627.7031, 
25         F.S.; authorizing certain insurers to offer or renew 
26         policies at rates established under certain 
27         circumstances; prohibiting certain insurers from 
28         purchasing TICL option coverage from the Florida 
29         Hurricane Catastrophe Fund under certain 
30         circumstances; requiring that certain policies contain 
31         a specified rate notice; requiring insurers to offer 
32         applicants or insureds an estimate of the premium for 
33         a policy from Citizens Property Insurance Corporation 
34         reflecting similar coverage, limits, and deductibles; 
35         requiring applicants or insureds to provide a signed 
36         premium comparison acknowledgement; specifying 
37         criteria for insurer compliance with certain 
38         requirements; specifying acknowledgement contents; 
39         requiring insurers and agents to retain a copy of the 
40         acknowledgement for a specified time; specifying a 
41         presumption created by a signed acknowledgement; 
42         specifying types of residential property insurance 
43         policies that are not eligible for certain rates or 
44         subject to other requirements; requiring written 
45         notice of certain nonrenewals; preserving insurer 
46         authority to cancel policies; specifying a criterion 
47         for what constitutes an offer to renew a policy; 
48         providing an effective date. 
49 
50  Be It Enacted by the Legislature of the State of Florida: 
51 
52         Section 1. Paragraph (l) is added to subsection (2) of 
53  section 627.062, Florida Statutes, to read: 
54         627.062 Rate standards.— 
55         (2) As to all such classes of insurance: 
56         (l)1. An insurer complying with the requirements of s. 
57  627.7031 may use a rate for residential property insurance, as 
58  defined in s. 627.4025, different from the otherwise applicable 
59  filed rate as provided in this paragraph. 
60         2. Policies subject to this paragraph may not be counted in 
61  the calculation under s. 627.171(2). 
62         3. Such rates shall be filed with the office as a separate 
63  filing. 
64         4. This paragraph does not affect the authority of the 
65  office to disapprove a rate as inadequate or to disapprove a 
66  rate filing for charging any insured or applicant a higher 
67  premium solely because of the insured’s or applicant’s race, 
68  color, creed, marital status, sex, or national origin. Upon 
69  finding that an insurer has used any such factor in charging an 
70  insured or applicant a higher premium, the office may direct the 
71  insurer to make a new filing for a new rate that does not use 
72  such factor. 
73 
74  The provisions of this subsection shall not apply to workers’ 
75  compensation and employer’s liability insurance and to motor 
76  vehicle insurance. 
77         Section 2. Paragraphs (g) through (ff) of subsection (6) of 
78  section 627.351, Florida Statutes, are redesignated as 
79  paragraphs (f) through (ee), respectively, present paragraph (f) 
80  of that subsection is redesignated as paragraph (ff), and 
81  paragraphs (b) and (c) of subsection (6) of section 627.351, 
82  Florida Statutes, are amended to read: 
83         627.351 Insurance risk apportionment plans.— 
84         (6) CITIZENS PROPERTY INSURANCE CORPORATION.— 
85         (b)1. All insurers authorized to write one or more subject 
86  lines of business in this state are subject to assessment by the 
87  corporation and, for the purposes of this subsection, are 
88  referred to collectively as “assessable insurers.” Insurers 
89  writing one or more subject lines of business in this state 
90  pursuant to part VIII of chapter 626 are not assessable 
91  insurers, but insureds who procure one or more subject lines of 
92  business in this state pursuant to part VIII of chapter 626 are 
93  subject to assessment by the corporation and are referred to 
94  collectively as “assessable insureds.” An authorized insurer’s 
95  assessment liability shall begin on the first day of the 
96  calendar year following the year in which the insurer was issued 
97  a certificate of authority to transact insurance for subject 
98  lines of business in this state and shall terminate 1 year after 
99  the end of the first calendar year during which the insurer no 
100  longer holds a certificate of authority to transact insurance 
101  for subject lines of business in this state. 
102         2.a. All revenues, assets, liabilities, losses, and 
103  expenses of the corporation shall be divided into three separate 
104  accounts as follows: 
105         (I) A personal lines account for personal residential 
106  policies issued by the corporation or issued by the Residential 
107  Property and Casualty Joint Underwriting Association and renewed 
108  by the corporation that provide comprehensive, multiperil 
109  coverage on risks that are not located in areas eligible for 
110  coverage in the Florida Windstorm Underwriting Association as 
111  those areas were defined on January 1, 2002, and for such 
112  policies that do not provide coverage for the peril of wind on 
113  risks that are located in such areas; 
114         (II) A commercial lines account for commercial residential 
115  and commercial nonresidential policies issued by the corporation 
116  or issued by the Residential Property and Casualty Joint 
117  Underwriting Association and renewed by the corporation that 
118  provide coverage for basic property perils on risks that are not 
119  located in areas eligible for coverage in the Florida Windstorm 
120  Underwriting Association as those areas were defined on January 
121  1, 2002, and for such policies that do not provide coverage for 
122  the peril of wind on risks that are located in such areas; and 
123         (III) A high-risk account for personal residential policies 
124  and commercial residential and commercial nonresidential 
125  property policies issued by the corporation or transferred to 
126  the corporation that provide coverage for the peril of wind on 
127  risks that are located in areas eligible for coverage in the 
128  Florida Windstorm Underwriting Association as those areas were 
129  defined on January 1, 2002. The corporation may offer policies 
130  that provide multiperil coverage and the corporation shall 
131  continue to offer policies that provide coverage only for the 
132  peril of wind for risks located in areas eligible for coverage 
133  in the high-risk account. In issuing multiperil coverage, the 
134  corporation may use its approved policy forms and rates for the 
135  personal lines account. An applicant or insured who is eligible 
136  to purchase a multiperil policy from the corporation may 
137  purchase a multiperil policy from an authorized insurer without 
138  prejudice to the applicant’s or insured’s eligibility to 
139  prospectively purchase a policy that provides coverage only for 
140  the peril of wind from the corporation. An applicant or insured 
141  who is eligible for a corporation policy that provides coverage 
142  only for the peril of wind may elect to purchase or retain such 
143  policy and also purchase or retain coverage excluding wind from 
144  an authorized insurer without prejudice to the applicant’s or 
145  insured’s eligibility to prospectively purchase a policy that 
146  provides multiperil coverage from the corporation. It is the 
147  goal of the Legislature that there would be an overall average 
148  savings of 10 percent or more for a policyholder who currently 
149  has a wind-only policy with the corporation, and an ex-wind 
150  policy with a voluntary insurer or the corporation, and who then 
151  obtains a multiperil policy from the corporation. It is the 
152  intent of the Legislature that the offer of multiperil coverage 
153  in the high-risk account be made and implemented in a manner 
154  that does not adversely affect the tax-exempt status of the 
155  corporation or creditworthiness of or security for currently 
156  outstanding financing obligations or credit facilities of the 
157  high-risk account, the personal lines account, or the commercial 
158  lines account. The high-risk account must also include quota 
159  share primary insurance under subparagraph (c)2. The area 
160  eligible for coverage under the high-risk account also includes 
161  the area within Port Canaveral, which is bordered on the south 
162  by the City of Cape Canaveral, bordered on the west by the 
163  Banana River, and bordered on the north by Federal Government 
164  property. 
165         b. The three separate accounts must be maintained as long 
166  as financing obligations entered into by the Florida Windstorm 
167  Underwriting Association or Residential Property and Casualty 
168  Joint Underwriting Association are outstanding, in accordance 
169  with the terms of the corresponding financing documents. When 
170  the financing obligations are no longer outstanding, in 
171  accordance with the terms of the corresponding financing 
172  documents, the corporation may use a single account for all 
173  revenues, assets, liabilities, losses, and expenses of the 
174  corporation. Consistent with the requirement of this 
175  subparagraph and prudent investment policies that minimize the 
176  cost of carrying debt, the board shall exercise its best efforts 
177  to retire existing debt or to obtain approval of necessary 
178  parties to amend the terms of existing debt, so as to structure 
179  the most efficient plan to consolidate the three separate 
180  accounts into a single account. By February 1, 2007, the board 
181  shall submit a report to the Financial Services Commission, the 
182  President of the Senate, and the Speaker of the House of 
183  Representatives which includes an analysis of consolidating the 
184  accounts, the actions the board has taken to minimize the cost 
185  of carrying debt, and its recommendations for executing the most 
186  efficient plan. 
187         c. Creditors of the Residential Property and Casualty Joint 
188  Underwriting Association and of the accounts specified in sub 
189  sub-subparagraphs a.(I) and (II) may have a claim against, and 
190  recourse to, the accounts referred to in sub-sub-subparagraphs 
191  a.(I) and (II) and shall have no claim against, or recourse to, 
192  the account referred to in sub-sub-subparagraph a.(III). 
193  Creditors of the Florida Windstorm Underwriting Association 
194  shall have a claim against, and recourse to, the account 
195  referred to in sub-sub-subparagraph a.(III) and shall have no 
196  claim against, or recourse to, the accounts referred to in sub 
197  sub-subparagraphs a.(I) and (II). 
198         d. Revenues, assets, liabilities, losses, and expenses not 
199  attributable to particular accounts shall be prorated among the 
200  accounts. 
201         e. The Legislature finds that the revenues of the 
202  corporation are revenues that are necessary to meet the 
203  requirements set forth in documents authorizing the issuance of 
204  bonds under this subsection. 
205         f. No part of the income of the corporation may inure to 
206  the benefit of any private person. 
207         3. With respect to a deficit in an account: 
208         a. After accounting for the Citizens policyholder surcharge 
209  imposed under sub-subparagraph i., when the remaining projected 
210  deficit incurred in a particular calendar year is not greater 
211  than 6 percent of the aggregate statewide direct written premium 
212  for the subject lines of business for the prior calendar year, 
213  the entire deficit shall be recovered through regular 
214  assessments of assessable insurers under paragraph (p) and 
215  assessable insureds. 
216         b. After accounting for the Citizens policyholder surcharge 
217  imposed under sub-subparagraph i., when the remaining projected 
218  deficit incurred in a particular calendar year exceeds 6 percent 
219  of the aggregate statewide direct written premium for the 
220  subject lines of business for the prior calendar year, the 
221  corporation shall levy regular assessments on assessable 
222  insurers under paragraph (p) and on assessable insureds in an 
223  amount equal to the greater of 6 percent of the deficit or 6 
224  percent of the aggregate statewide direct written premium for 
225  the subject lines of business for the prior calendar year. Any 
226  remaining deficit shall be recovered through emergency 
227  assessments under sub-subparagraph d. 
228         c. Each assessable insurer’s share of the amount being 
229  assessed under sub-subparagraph a. or sub-subparagraph b. shall 
230  be in the proportion that the assessable insurer’s direct 
231  written premium for the subject lines of business for the year 
232  preceding the assessment bears to the aggregate statewide direct 
233  written premium for the subject lines of business for that year. 
234  The assessment percentage applicable to each assessable insured 
235  is the ratio of the amount being assessed under sub-subparagraph 
236  a. or sub-subparagraph b. to the aggregate statewide direct 
237  written premium for the subject lines of business for the prior 
238  year. Assessments levied by the corporation on assessable 
239  insurers under sub-subparagraphs a. and b. shall be paid as 
240  required by the corporation’s plan of operation and paragraph 
241  (p). Assessments levied by the corporation on assessable 
242  insureds under sub-subparagraphs a. and b. shall be collected by 
243  the surplus lines agent at the time the surplus lines agent 
244  collects the surplus lines tax required by s. 626.932 and shall 
245  be paid to the Florida Surplus Lines Service Office at the time 
246  the surplus lines agent pays the surplus lines tax to the 
247  Florida Surplus Lines Service Office. Upon receipt of regular 
248  assessments from surplus lines agents, the Florida Surplus Lines 
249  Service Office shall transfer the assessments directly to the 
250  corporation as determined by the corporation. 
251         d. Upon a determination by the board of governors that a 
252  deficit in an account exceeds the amount that will be recovered 
253  through regular assessments under sub-subparagraph a. or sub 
254  subparagraph b., plus the amount that is expected to be 
255  recovered through surcharges under sub-subparagraph i., as to 
256  the remaining projected deficit the board shall levy, after 
257  verification by the office, emergency assessments, for as many 
258  years as necessary to cover the deficits, to be collected by 
259  assessable insurers and the corporation and collected from 
260  assessable insureds upon issuance or renewal of policies for 
261  subject lines of business, excluding National Flood Insurance 
262  policies. The amount of the emergency assessment collected in a 
263  particular year shall be a uniform percentage of that year’s 
264  direct written premium for subject lines of business and all 
265  accounts of the corporation, excluding National Flood Insurance 
266  Program policy premiums, as annually determined by the board and 
267  verified by the office. The office shall verify the arithmetic 
268  calculations involved in the board’s determination within 30 
269  days after receipt of the information on which the determination 
270  was based. Notwithstanding any other provision of law, the 
271  corporation and each assessable insurer that writes subject 
272  lines of business shall collect emergency assessments from its 
273  policyholders without such obligation being affected by any 
274  credit, limitation, exemption, or deferment. Emergency 
275  assessments levied by the corporation on assessable insureds 
276  shall be collected by the surplus lines agent at the time the 
277  surplus lines agent collects the surplus lines tax required by 
278  s. 626.932 and shall be paid to the Florida Surplus Lines 
279  Service Office at the time the surplus lines agent pays the 
280  surplus lines tax to the Florida Surplus Lines Service Office. 
281  The emergency assessments so collected shall be transferred 
282  directly to the corporation on a periodic basis as determined by 
283  the corporation and shall be held by the corporation solely in 
284  the applicable account. The aggregate amount of emergency 
285  assessments levied for an account under this sub-subparagraph in 
286  any calendar year may, at the discretion of the board of 
287  governors, be less than but may not exceed the greater of 10 
288  percent of the amount needed to cover the deficit, plus 
289  interest, fees, commissions, required reserves, and other costs 
290  associated with financing of the original deficit, or 10 percent 
291  of the aggregate statewide direct written premium for subject 
292  lines of business and for all accounts of the corporation for 
293  the prior year, plus interest, fees, commissions, required 
294  reserves, and other costs associated with financing the deficit. 
295         e. The corporation may pledge the proceeds of assessments, 
296  projected recoveries from the Florida Hurricane Catastrophe 
297  Fund, other insurance and reinsurance recoverables, policyholder 
298  surcharges and other surcharges, and other funds available to 
299  the corporation as the source of revenue for and to secure bonds 
300  issued under paragraph (p), bonds or other indebtedness issued 
301  under subparagraph (c)3., or lines of credit or other financing 
302  mechanisms issued or created under this subsection, or to retire 
303  any other debt incurred as a result of deficits or events giving 
304  rise to deficits, or in any other way that the board determines 
305  will efficiently recover such deficits. The purpose of the lines 
306  of credit or other financing mechanisms is to provide additional 
307  resources to assist the corporation in covering claims and 
308  expenses attributable to a catastrophe. As used in this 
309  subsection, the term “assessments” includes regular assessments 
310  under sub-subparagraph a., sub-subparagraph b., or subparagraph 
311  (p)1. and emergency assessments under sub-subparagraph d. 
312  Emergency assessments collected under sub-subparagraph d. are 
313  not part of an insurer’s rates, are not premium, and are not 
314  subject to premium tax, fees, or commissions; however, failure 
315  to pay the emergency assessment shall be treated as failure to 
316  pay premium. The emergency assessments under sub-subparagraph d. 
317  shall continue as long as any bonds issued or other indebtedness 
318  incurred with respect to a deficit for which the assessment was 
319  imposed remain outstanding, unless adequate provision has been 
320  made for the payment of such bonds or other indebtedness 
321  pursuant to the documents governing such bonds or other 
322  indebtedness. 
323         f. As used in this subsection for purposes of any deficit 
324  incurred on or after January 25, 2007, the term “subject lines 
325  of business” means insurance written by assessable insurers or 
326  procured by assessable insureds for all property and casualty 
327  lines of business in this state, but not including workers’ 
328  compensation or medical malpractice. As used in the sub 
329  subparagraph, the term “property and casualty lines of business” 
330  includes all lines of business identified on Form 2, Exhibit of 
331  Premiums and Losses, in the annual statement required of 
332  authorized insurers by s. 624.424 and any rule adopted under 
333  this section, except for those lines identified as accident and 
334  health insurance and except for policies written under the 
335  National Flood Insurance Program or the Federal Crop Insurance 
336  Program. For purposes of this sub-subparagraph, the term 
337  “workers’ compensation” includes both workers’ compensation 
338  insurance and excess workers’ compensation insurance. 
339         g. The Florida Surplus Lines Service Office shall determine 
340  annually the aggregate statewide written premium in subject 
341  lines of business procured by assessable insureds and shall 
342  report that information to the corporation in a form and at a 
343  time the corporation specifies to ensure that the corporation 
344  can meet the requirements of this subsection and the 
345  corporation’s financing obligations. 
346         h. The Florida Surplus Lines Service Office shall verify 
347  the proper application by surplus lines agents of assessment 
348  percentages for regular assessments and emergency assessments 
349  levied under this subparagraph on assessable insureds and shall 
350  assist the corporation in ensuring the accurate, timely 
351  collection and payment of assessments by surplus lines agents as 
352  required by the corporation. 
353         i.(I) If a deficit is incurred in any account in 2008 or 
354  thereafter, the board of governors shall levy a Citizens 
355  policyholder surcharge against all policyholders of the 
356  corporation. 
357         (II) The policyholder’s liability for the Citizens 
358  policyholder surcharge attaches on the date of the order levying 
359  the surcharge or upon the initial issuance of a policy within 
360  the first 12 months after the date of the order. The Citizens 
361  policyholder surcharge is payable upon cancellation or 
362  termination of the policy, upon renewal of the policy, or upon 
363  issuance of a new policy within the first 12 months after the 
364  date of the levy. 
365         (III) The Citizens policyholder surcharge for a 12-month 
366  period, which shall be levied collected at the time of issuance 
367  or renewal of a policy, as a uniform percentage of the premium 
368  for the policy of up to 15 percent of such premium, which funds 
369  shall be used to offset the deficit. 
370         (IV) The corporation may not levy any regular assessments 
371  under paragraph (q) pursuant to sub-subparagraph a. or sub 
372  subparagraph b. with respect to a particular year’s deficit 
373  until the corporation has first levied a Citizens policyholder 
374  surcharge under this sub-subparagraph in the full amount 
375  authorized by this sub-subparagraph. 
376         (V) Citizens policyholder surcharges under this sub 
377  subparagraph are not considered premium and are not subject to 
378  commissions, fees, or premium taxes. However, failure to pay 
379  such surcharges shall be treated as failure to pay premium. 
380         j. If the amount of any assessments or surcharges collected 
381  from corporation policyholders, assessable insurers or their 
382  policyholders, or assessable insureds exceeds the amount of the 
383  deficits, such excess amounts shall be remitted to and retained 
384  by the corporation in a reserve to be used by the corporation, 
385  as determined by the board of governors and approved by the 
386  office, to pay claims or reduce any past, present, or future 
387  plan-year deficits or to reduce outstanding debt. 
388         (c) The plan of operation of the corporation: 
389         1. Must provide for adoption of residential property and 
390  casualty insurance policy forms and commercial residential and 
391  nonresidential property insurance forms, which forms must be 
392  approved by the office prior to use. The corporation shall adopt 
393  the following policy forms: 
394         a. Standard personal lines policy forms that are 
395  comprehensive multiperil policies providing full coverage of a 
396  residential property equivalent to the coverage provided in the 
397  private insurance market under an HO-3, HO-4, or HO-6 policy. 
398         b. Basic personal lines policy forms that are policies 
399  similar to an HO-8 policy or a dwelling fire policy that provide 
400  coverage meeting the requirements of the secondary mortgage 
401  market, but which coverage is more limited than the coverage 
402  under a standard policy. 
403         c. Commercial lines residential and nonresidential policy 
404  forms that are generally similar to the basic perils of full 
405  coverage obtainable for commercial residential structures and 
406  commercial nonresidential structures in the admitted voluntary 
407  market. 
408         d. Personal lines and commercial lines residential property 
409  insurance forms that cover the peril of wind only. The forms are 
410  applicable only to residential properties located in areas 
411  eligible for coverage under the high-risk account referred to in 
412  sub-subparagraph (b)2.a. 
413         e. Commercial lines nonresidential property insurance forms 
414  that cover the peril of wind only. The forms are applicable only 
415  to nonresidential properties located in areas eligible for 
416  coverage under the high-risk account referred to in sub 
417  subparagraph (b)2.a. 
418         f. The corporation may adopt variations of the policy forms 
419  listed in sub-subparagraphs a.-e. that contain more restrictive 
420  coverage. 
421         2.a. Must provide that the corporation adopt a program in 
422  which the corporation and authorized insurers enter into quota 
423  share primary insurance agreements for hurricane coverage, as 
424  defined in s. 627.4025(2)(a), for eligible risks, and adopt 
425  property insurance forms for eligible risks which cover the 
426  peril of wind only. As used in this subsection, the term: 
427         (I) “Quota share primary insurance” means an arrangement in 
428  which the primary hurricane coverage of an eligible risk is 
429  provided in specified percentages by the corporation and an 
430  authorized insurer. The corporation and authorized insurer are 
431  each solely responsible for a specified percentage of hurricane 
432  coverage of an eligible risk as set forth in a quota share 
433  primary insurance agreement between the corporation and an 
434  authorized insurer and the insurance contract. The 
435  responsibility of the corporation or authorized insurer to pay 
436  its specified percentage of hurricane losses of an eligible 
437  risk, as set forth in the quota share primary insurance 
438  agreement, may not be altered by the inability of the other 
439  party to the agreement to pay its specified percentage of 
440  hurricane losses. Eligible risks that are provided hurricane 
441  coverage through a quota share primary insurance arrangement 
442  must be provided policy forms that set forth the obligations of 
443  the corporation and authorized insurer under the arrangement, 
444  clearly specify the percentages of quota share primary insurance 
445  provided by the corporation and authorized insurer, and 
446  conspicuously and clearly state that neither the authorized 
447  insurer nor the corporation may be held responsible beyond its 
448  specified percentage of coverage of hurricane losses. 
449         (II) “Eligible risks” means personal lines residential and 
450  commercial lines residential risks that meet the underwriting 
451  criteria of the corporation and are located in areas that were 
452  eligible for coverage by the Florida Windstorm Underwriting 
453  Association on January 1, 2002. 
454         b. The corporation may enter into quota share primary 
455  insurance agreements with authorized insurers at corporation 
456  coverage levels of 90 percent and 50 percent. 
457         c. If the corporation determines that additional coverage 
458  levels are necessary to maximize participation in quota share 
459  primary insurance agreements by authorized insurers, the 
460  corporation may establish additional coverage levels. However, 
461  the corporation’s quota share primary insurance coverage level 
462  may not exceed 90 percent. 
463         d. Any quota share primary insurance agreement entered into 
464  between an authorized insurer and the corporation must provide 
465  for a uniform specified percentage of coverage of hurricane 
466  losses, by county or territory as set forth by the corporation 
467  board, for all eligible risks of the authorized insurer covered 
468  under the quota share primary insurance agreement. 
469         e. Any quota share primary insurance agreement entered into 
470  between an authorized insurer and the corporation is subject to 
471  review and approval by the office. However, such agreement shall 
472  be authorized only as to insurance contracts entered into 
473  between an authorized insurer and an insured who is already 
474  insured by the corporation for wind coverage. 
475         f. For all eligible risks covered under quota share primary 
476  insurance agreements, the exposure and coverage levels for both 
477  the corporation and authorized insurers shall be reported by the 
478  corporation to the Florida Hurricane Catastrophe Fund. For all 
479  policies of eligible risks covered under quota share primary 
480  insurance agreements, the corporation and the authorized insurer 
481  shall maintain complete and accurate records for the purpose of 
482  exposure and loss reimbursement audits as required by Florida 
483  Hurricane Catastrophe Fund rules. The corporation and the 
484  authorized insurer shall each maintain duplicate copies of 
485  policy declaration pages and supporting claims documents. 
486         g. The corporation board shall establish in its plan of 
487  operation standards for quota share agreements which ensure that 
488  there is no discriminatory application among insurers as to the 
489  terms of quota share agreements, pricing of quota share 
490  agreements, incentive provisions if any, and consideration paid 
491  for servicing policies or adjusting claims. 
492         h. The quota share primary insurance agreement between the 
493  corporation and an authorized insurer must set forth the 
494  specific terms under which coverage is provided, including, but 
495  not limited to, the sale and servicing of policies issued under 
496  the agreement by the insurance agent of the authorized insurer 
497  producing the business, the reporting of information concerning 
498  eligible risks, the payment of premium to the corporation, and 
499  arrangements for the adjustment and payment of hurricane claims 
500  incurred on eligible risks by the claims adjuster and personnel 
501  of the authorized insurer. Entering into a quota sharing 
502  insurance agreement between the corporation and an authorized 
503  insurer shall be voluntary and at the discretion of the 
504  authorized insurer. 
505         3. May provide that the corporation may employ or otherwise 
506  contract with individuals or other entities to provide 
507  administrative or professional services that may be appropriate 
508  to effectuate the plan. The corporation shall have the power to 
509  borrow funds, by issuing bonds or by incurring other 
510  indebtedness, and shall have other powers reasonably necessary 
511  to effectuate the requirements of this subsection, including, 
512  without limitation, the power to issue bonds and incur other 
513  indebtedness in order to refinance outstanding bonds or other 
514  indebtedness. The corporation may, but is not required to, seek 
515  judicial validation of its bonds or other indebtedness under 
516  chapter 75. The corporation may issue bonds or incur other 
517  indebtedness, or have bonds issued on its behalf by a unit of 
518  local government pursuant to subparagraph (p)2., in the absence 
519  of a hurricane or other weather-related event, upon a 
520  determination by the corporation, subject to approval by the 
521  office, that such action would enable it to efficiently meet the 
522  financial obligations of the corporation and that such 
523  financings are reasonably necessary to effectuate the 
524  requirements of this subsection. The corporation is authorized 
525  to take all actions needed to facilitate tax-free status for any 
526  such bonds or indebtedness, including formation of trusts or 
527  other affiliated entities. The corporation shall have the 
528  authority to pledge assessments, projected recoveries from the 
529  Florida Hurricane Catastrophe Fund, other reinsurance 
530  recoverables, market equalization and other surcharges, and 
531  other funds available to the corporation as security for bonds 
532  or other indebtedness. In recognition of s. 10, Art. I of the 
533  State Constitution, prohibiting the impairment of obligations of 
534  contracts, it is the intent of the Legislature that no action be 
535  taken whose purpose is to impair any bond indenture or financing 
536  agreement or any revenue source committed by contract to such 
537  bond or other indebtedness. 
538         4.a. Must require that the corporation operate subject to 
539  the supervision and approval of a board of governors consisting 
540  of eight individuals who are residents of this state, from 
541  different geographical areas of this state. The Governor, the 
542  Chief Financial Officer, the President of the Senate, and the 
543  Speaker of the House of Representatives shall each appoint two 
544  members of the board. At least one of the two members appointed 
545  by each appointing officer must have demonstrated expertise in 
546  insurance. The Chief Financial Officer shall designate one of 
547  the appointees as chair. All board members serve at the pleasure 
548  of the appointing officer. All members of the board of governors 
549  are subject to removal at will by the officers who appointed 
550  them. All board members, including the chair, must be appointed 
551  to serve for 3-year terms beginning annually on a date 
552  designated by the plan. However, for the first term beginning on 
553  or after July 1, 2009, each appointing officer shall appoint one 
554  member of the board for a 2-year term and one member for a 3 
555  year term. Any board vacancy shall be filled for the unexpired 
556  term by the appointing officer. The Chief Financial Officer 
557  shall appoint a technical advisory group to provide information 
558  and advice to the board of governors in connection with the 
559  board’s duties under this subsection. The executive director and 
560  senior managers of the corporation shall be engaged by the board 
561  and serve at the pleasure of the board. Any executive director 
562  appointed on or after July 1, 2006, is subject to confirmation 
563  by the Senate. The executive director is responsible for 
564  employing other staff as the corporation may require, subject to 
565  review and concurrence by the board. 
566         b. The board shall create a Market Accountability Advisory 
567  Committee to assist the corporation in developing awareness of 
568  its rates and its customer and agent service levels in 
569  relationship to the voluntary market insurers writing similar 
570  coverage. The members of the advisory committee shall consist of 
571  the following 11 persons, one of whom must be elected chair by 
572  the members of the committee: four representatives, one 
573  appointed by the Florida Association of Insurance Agents, one by 
574  the Florida Association of Insurance and Financial Advisors, one 
575  by the Professional Insurance Agents of Florida, and one by the 
576  Latin American Association of Insurance Agencies; three 
577  representatives appointed by the insurers with the three highest 
578  voluntary market share of residential property insurance 
579  business in the state; one representative from the Office of 
580  Insurance Regulation; one consumer appointed by the board who is 
581  insured by the corporation at the time of appointment to the 
582  committee; one representative appointed by the Florida 
583  Association of Realtors; and one representative appointed by the 
584  Florida Bankers Association. All members must serve for 3-year 
585  terms and may serve for consecutive terms. The committee shall 
586  report to the corporation at each board meeting on insurance 
587  market issues which may include rates and rate competition with 
588  the voluntary market; service, including policy issuance, claims 
589  processing, and general responsiveness to policyholders, 
590  applicants, and agents; and matters relating to depopulation. 
591         5. Must provide a procedure for determining the eligibility 
592  of a risk for coverage, as follows: 
593         a. Subject to the provisions of s. 627.3517, with respect 
594  to personal lines residential risks, if the risk is offered 
595  coverage from an authorized insurer at the insurer’s approved 
596  rate under either a standard policy including wind coverage or, 
597  if consistent with the insurer’s underwriting rules as filed 
598  with the office, a basic policy including wind coverage, for a 
599  new application to the corporation for coverage, the risk is not 
600  eligible for any policy issued by the corporation unless the 
601  premium for coverage from the authorized insurer is more than 15 
602  percent greater than the premium for comparable coverage from 
603  the corporation. If the risk is not able to obtain any such 
604  offer, the risk is eligible for either a standard policy 
605  including wind coverage or a basic policy including wind 
606  coverage issued by the corporation; however, if the risk could 
607  not be insured under a standard policy including wind coverage 
608  regardless of market conditions, the risk shall be eligible for 
609  a basic policy including wind coverage unless rejected under 
610  subparagraph 8. However, with regard to a policyholder of the 
611  corporation or a policyholder removed from the corporation 
612  through an assumption agreement until the end of the assumption 
613  period, the policyholder remains eligible for coverage from the 
614  corporation regardless of any offer of coverage from an 
615  authorized insurer or surplus lines insurer. The corporation 
616  shall determine the type of policy to be provided on the basis 
617  of objective standards specified in the underwriting manual and 
618  based on generally accepted underwriting practices. 
619         (I) If the risk accepts an offer of coverage through the 
620  market assistance plan or an offer of coverage through a 
621  mechanism established by the corporation before a policy is 
622  issued to the risk by the corporation or during the first 30 
623  days of coverage by the corporation, and the producing agent who 
624  submitted the application to the plan or to the corporation is 
625  not currently appointed by the insurer, the insurer shall: 
626         (A) Pay to the producing agent of record of the policy, for 
627  the first year, an amount that is the greater of the insurer’s 
628  usual and customary commission for the type of policy written or 
629  a fee equal to the usual and customary commission of the 
630  corporation; or 
631         (B) Offer to allow the producing agent of record of the 
632  policy to continue servicing the policy for a period of not less 
633  than 1 year and offer to pay the agent the greater of the 
634  insurer’s or the corporation’s usual and customary commission 
635  for the type of policy written. 
636 
637  If the producing agent is unwilling or unable to accept 
638  appointment, the new insurer shall pay the agent in accordance 
639  with sub-sub-sub-subparagraph (A). 
640         (II) When the corporation enters into a contractual 
641  agreement for a take-out plan, the producing agent of record of 
642  the corporation policy is entitled to retain any unearned 
643  commission on the policy, and the insurer shall: 
644         (A) Pay to the producing agent of record of the corporation 
645  policy, for the first year, an amount that is the greater of the 
646  insurer’s usual and customary commission for the type of policy 
647  written or a fee equal to the usual and customary commission of 
648  the corporation; or 
649         (B) Offer to allow the producing agent of record of the 
650  corporation policy to continue servicing the policy for a period 
651  of not less than 1 year and offer to pay the agent the greater 
652  of the insurer’s or the corporation’s usual and customary 
653  commission for the type of policy written. 
654 
655  If the producing agent is unwilling or unable to accept 
656  appointment, the new insurer shall pay the agent in accordance 
657  with sub-sub-sub-subparagraph (A). 
658         b. With respect to commercial lines residential risks, for 
659  a new application to the corporation for coverage, if the risk 
660  is offered coverage under a policy including wind coverage from 
661  an authorized insurer at its approved rate, the risk is not 
662  eligible for any policy issued by the corporation unless the 
663  premium for coverage from the authorized insurer is more than 15 
664  percent greater than the premium for comparable coverage from 
665  the corporation. If the risk is not able to obtain any such 
666  offer, the risk is eligible for a policy including wind coverage 
667  issued by the corporation. However, with regard to a 
668  policyholder of the corporation or a policyholder removed from 
669  the corporation through an assumption agreement until the end of 
670  the assumption period, the policyholder remains eligible for 
671  coverage from the corporation regardless of any offer of 
672  coverage from an authorized insurer or surplus lines insurer. 
673         (I) If the risk accepts an offer of coverage through the 
674  market assistance plan or an offer of coverage through a 
675  mechanism established by the corporation before a policy is 
676  issued to the risk by the corporation or during the first 30 
677  days of coverage by the corporation, and the producing agent who 
678  submitted the application to the plan or the corporation is not 
679  currently appointed by the insurer, the insurer shall: 
680         (A) Pay to the producing agent of record of the policy, for 
681  the first year, an amount that is the greater of the insurer’s 
682  usual and customary commission for the type of policy written or 
683  a fee equal to the usual and customary commission of the 
684  corporation; or 
685         (B) Offer to allow the producing agent of record of the 
686  policy to continue servicing the policy for a period of not less 
687  than 1 year and offer to pay the agent the greater of the 
688  insurer’s or the corporation’s usual and customary commission 
689  for the type of policy written. 
690 
691  If the producing agent is unwilling or unable to accept 
692  appointment, the new insurer shall pay the agent in accordance 
693  with sub-sub-sub-subparagraph (A). 
694         (II) When the corporation enters into a contractual 
695  agreement for a take-out plan, the producing agent of record of 
696  the corporation policy is entitled to retain any unearned 
697  commission on the policy, and the insurer shall: 
698         (A) Pay to the producing agent of record of the corporation 
699  policy, for the first year, an amount that is the greater of the 
700  insurer’s usual and customary commission for the type of policy 
701  written or a fee equal to the usual and customary commission of 
702  the corporation; or 
703         (B) Offer to allow the producing agent of record of the 
704  corporation policy to continue servicing the policy for a period 
705  of not less than 1 year and offer to pay the agent the greater 
706  of the insurer’s or the corporation’s usual and customary 
707  commission for the type of policy written. 
708 
709  If the producing agent is unwilling or unable to accept 
710  appointment, the new insurer shall pay the agent in accordance 
711  with sub-sub-sub-subparagraph (A). 
712         c. For purposes of determining comparable coverage under 
713  sub-subparagraphs a. and b., the comparison shall be based on 
714  those forms and coverages that are reasonably comparable. The 
715  corporation may rely on a determination of comparable coverage 
716  and premium made by the producing agent who submits the 
717  application to the corporation, made in the agent’s capacity as 
718  the corporation’s agent. A comparison may be made solely of the 
719  premium with respect to the main building or structure only on 
720  the following basis: the same coverage A or other building 
721  limits; the same percentage hurricane deductible that applies on 
722  an annual basis or that applies to each hurricane for commercial 
723  residential property; the same percentage of ordinance and law 
724  coverage, if the same limit is offered by both the corporation 
725  and the authorized insurer; the same mitigation credits, to the 
726  extent the same types of credits are offered both by the 
727  corporation and the authorized insurer; the same method for loss 
728  payment, such as replacement cost or actual cash value, if the 
729  same method is offered both by the corporation and the 
730  authorized insurer in accordance with underwriting rules; and 
731  any other form or coverage that is reasonably comparable as 
732  determined by the board. If an application is submitted to the 
733  corporation for wind-only coverage in the high-risk account, the 
734  premium for the corporation’s wind-only policy plus the premium 
735  for the ex-wind policy that is offered by an authorized insurer 
736  to the applicant shall be compared to the premium for multiperil 
737  coverage offered by an authorized insurer, subject to the 
738  standards for comparison specified in this subparagraph. If the 
739  corporation or the applicant requests from the authorized 
740  insurer a breakdown of the premium of the offer by types of 
741  coverage so that a comparison may be made by the corporation or 
742  its agent and the authorized insurer refuses or is unable to 
743  provide such information, the corporation may treat the offer as 
744  not being an offer of coverage from an authorized insurer at the 
745  insurer’s approved rate. 
746         6. Must include rules for classifications of risks and 
747  rates therefor. 
748         7. Must provide that if premium and investment income for 
749  an account attributable to a particular calendar year are in 
750  excess of projected losses and expenses for the account 
751  attributable to that year, such excess shall be held in surplus 
752  in the account. Such surplus shall be available to defray 
753  deficits in that account as to future years and shall be used 
754  for that purpose prior to assessing assessable insurers and 
755  assessable insureds as to any calendar year. 
756         8. Must provide objective criteria and procedures to be 
757  uniformly applied for all applicants in determining whether an 
758  individual risk is so hazardous as to be uninsurable. In making 
759  this determination and in establishing the criteria and 
760  procedures, the following shall be considered: 
761         a. Whether the likelihood of a loss for the individual risk 
762  is substantially higher than for other risks of the same class; 
763  and 
764         b. Whether the uncertainty associated with the individual 
765  risk is such that an appropriate premium cannot be determined. 
766 
767  The acceptance or rejection of a risk by the corporation shall 
768  be construed as the private placement of insurance, and the 
769  provisions of chapter 120 shall not apply. 
770         9. Must provide that the corporation shall make its best 
771  efforts to procure catastrophe reinsurance at reasonable rates, 
772  to cover its projected 100-year probable maximum loss as 
773  determined by the board of governors. 
774         10. The policies issued by the corporation must provide 
775  that, if the corporation or the market assistance plan obtains 
776  an offer from an authorized insurer to cover the risk at its 
777  approved rates, the risk is no longer eligible for renewal 
778  through the corporation, except as otherwise provided in this 
779  subsection. 
780         11. Corporation policies and applications must include a 
781  notice that the corporation policy could, under this section, be 
782  replaced with a policy issued by an authorized insurer that does 
783  not provide coverage identical to the coverage provided by the 
784  corporation. The notice shall also specify that acceptance of 
785  corporation coverage creates a conclusive presumption that the 
786  applicant or policyholder is aware of this potential. 
787         12. May establish, subject to approval by the office, 
788  different eligibility requirements and operational procedures 
789  for any line or type of coverage for any specified county or 
790  area if the board determines that such changes to the 
791  eligibility requirements and operational procedures are 
792  justified due to the voluntary market being sufficiently stable 
793  and competitive in such area or for such line or type of 
794  coverage and that consumers who, in good faith, are unable to 
795  obtain insurance through the voluntary market through ordinary 
796  methods would continue to have access to coverage from the 
797  corporation. When coverage is sought in connection with a real 
798  property transfer, such requirements and procedures shall not 
799  provide for an effective date of coverage later than the date of 
800  the closing of the transfer as established by the transferor, 
801  the transferee, and, if applicable, the lender. 
802         13. Must provide that, with respect to the high-risk 
803  account, any assessable insurer with a surplus as to 
804  policyholders of $25 million or less writing 25 percent or more 
805  of its total countrywide property insurance premiums in this 
806  state may petition the office, within the first 90 days of each 
807  calendar year, to qualify as a limited apportionment company. A 
808  regular assessment levied by the corporation on a limited 
809  apportionment company for a deficit incurred by the corporation 
810  for the high-risk account in 2006 or thereafter may be paid to 
811  the corporation on a monthly basis as the assessments are 
812  collected by the limited apportionment company from its insureds 
813  pursuant to s. 627.3512, but the regular assessment must be paid 
814  in full within 12 months after being levied by the corporation. 
815  A limited apportionment company shall collect from its 
816  policyholders any emergency assessment imposed under sub 
817  subparagraph (b)3.d. The plan shall provide that, if the office 
818  determines that any regular assessment will result in an 
819  impairment of the surplus of a limited apportionment company, 
820  the office may direct that all or part of such assessment be 
821  deferred as provided in subparagraph (p)4. However, there shall 
822  be no limitation or deferment of an emergency assessment to be 
823  collected from policyholders under sub-subparagraph (b)3.d. 
824         14. Must provide that the corporation appoint as its 
825  licensed agents only those agents who also hold an appointment 
826  as defined in s. 626.015(3) with an insurer who at the time of 
827  the agent’s initial appointment by the corporation is authorized 
828  to write and is actually writing personal lines residential 
829  property coverage, commercial residential property coverage, or 
830  commercial nonresidential property coverage within the state. 
831         15. Must provide, by July 1, 2007, a premium payment plan 
832  option to its policyholders which allows at a minimum for 
833  quarterly and semiannual payment of premiums. A monthly payment 
834  plan may, but is not required to, be offered. 
835         16. Must limit coverage on mobile homes or manufactured 
836  homes built prior to 1994 to actual cash value of the dwelling 
837  rather than replacement costs of the dwelling. 
838         17. May provide such limits of coverage as the board 
839  determines, consistent with the requirements of this subsection. 
840         18. May require commercial property to meet specified 
841  hurricane mitigation construction features as a condition of 
842  eligibility for coverage. 
843         19.a. Shall require the agent to obtain from any applicant 
844  for coverage the following acknowledgement, signed by the 
845  applicant, and shall require the agent of record to obtain the 
846  following acknowledgment from each corporation policyholder, 
847  signed by the policyholder, prior to the policy’s first renewal 
848  after the effective date of this act: 
849 
850        ACKNOWLEDGEMENT OF POTENTIAL SURCHARGE AND ASSESSMENT 
851                             LIABILITY: 
852         1. I UNDERSTAND, AS A CITIZENS PROPERTY INSURANCE 
853         CORPORATION POLICYHOLDER, THAT IF THE CORPORATION 
854         SUSTAINS A DEFICIT AS A RESULT OF HURRICANE LOSSES OR 
855         FOR ANY OTHER REASON, MY POLICY COULD BE SUBJECT TO 
856         CITIZENS POLICYHOLDER SURCHARGES, WHICH WOULD BE DUE 
857         AND PAYABLE UPON RENEWAL, CANCELLATION, OR TERMINATION 
858         OF THE POLICY, AND THAT THE SURCHARGES COULD BE AS 
859         HIGH AS 15 PERCENT OF MY PREMIUM FOR DEFICITS IN EACH 
860         OF THREE CITIZENS ACCOUNTS, OR A DIFFERENT AMOUNT AS 
861         ESTABLISHED BY THE FLORIDA LEGISLATURE. 
862         2. I ALSO UNDERSTAND THAT I MAY BE SUBJECT TO 
863         EMERGENCY ASSESSMENTS TO THE SAME EXTENT AS 
864         POLICYHOLDERS OF OTHER INSURANCE COMPANIES. 
865 
866         b. The corporation shall permanently maintain a signed copy 
867  of the signed acknowledgement required by this subparagraph, and 
868  the agent may also retain a copy. 
869         c. The signed acknowledgement form creates a conclusive 
870  presumption that the policyholder understood and accepted his or 
871  her potential surcharge and assessment liability as a Citizens 
872  policyholder. 
873         Section 3. Section 627.7031, Florida Statutes, is created 
874  to read: 
875         627.7031 Residential property insurance option.— 
876         (1) An insurer holding a certificate of authority to write 
877  property insurance in this state may offer or renew policies at 
878  rates established in accordance with s. 627.062(2)(l), subject 
879  to all of the requirements and prohibitions of this section. 
880         (2) An insurer offering or renewing policies at rates 
881  established in accordance with s. 627.062(2)(l) may not purchase 
882  coverage from the Florida Hurricane Catastrophe Fund under the 
883  temporary increase in coverage limit option under s. 
884  215.555(17). 
885         (3)(a) Before the effective date of a newly issued or 
886  renewal policy at rates established in accordance with s. 
887  627.062(2)(l), the applicant or insured must be given the 
888  following notice, printed in at least 12-point boldfaced type: 
889 
890         THE RATE FOR THIS POLICY IS NOT SUBJECT TO FULL RATE 
891  REGULATION BY THE FLORIDA OFFICE OF INSURANCE REGULATION AND MAY 
892  BE HIGHER THAN RATES APPROVED BY THAT OFFICE. A RESIDENTIAL 
893  PROPERTY POLICY SUBJECT TO FULL RATE REGULATION REQUIREMENTS MAY 
894  BE AVAILABLE FROM THIS INSURER, ANOTHER INSURER, OR CITIZENS 
895  PROPERTY INSURANCE CORPORATION. PLEASE DISCUSS YOUR POLICY 
896  OPTIONS WITH AN INSURANCE AGENT WHO CAN PROVIDE A CITIZENS 
897  QUOTE. YOU MAY WISH TO VIEW THE OFFICE OF INSURANCE REGULATION’S 
898  WEBSITE AT WWW.SHOPANDCOMPARERATES.COM FOR MORE INFORMATION 
899  ABOUT CHOICES AVAILABLE TO YOU. 
900 
901         (b) For policies renewed at a rate established in 
902  accordance with s. 627.062(2)(l), the notice described in 
903  paragraph (a) must be provided in writing at the same time as 
904  the renewal notice on a document separate from the renewal 
905  notice, but may be contained within the same mailing as the 
906  renewal notice. 
907         (4) Before the effective date of a newly issued policy at 
908  rates established in accordance with s. 627.062(2)(l), or before 
909  the effective date of the first renewal at rates established in 
910  accordance with s. 627.062(2)(l) of a policy originally issued 
911  before the effective date of this section, the applicant or 
912  insured must: 
913         (a) Be provided or offered, for comparison purposes, an 
914  estimate of the premium for a policy from Citizens Property 
915  Insurance Corporation reflecting substantially similar 
916  coverages, limits, and deductibles to the extent available. 
917         (b) Provide the insurer or agent with a signed copy of the 
918  following acknowledgement form, which must be retained by the 
919  insurer or agent for at least 3 years. If the acknowledgement 
920  form is signed by the insured or if the insured remits payment 
921  in the amount of the rate established in accordance with s. 
922  627.062(2)(l) after being mailed or otherwise provided the 
923  acknowledgement form specified in this paragraph, and after 
924  being mailed, otherwise provided, or offered the comparison 
925  specified in paragraph (a), an insurer renewing a policy at such 
926  rate shall be deemed to comply with this section, and it is 
927  presumed that the insured has been informed and understands the 
928  information contained in the comparison and acknowledgement 
929  forms: 
930 
931                           ACKNOWLEDGEMENT 
932         1. I HAVE REVIEWED THE REQUIRED DISCLOSURES AND THE 
933  REQUIRED PREMIUM COMPARISON. 
934         2. I UNDERSTAND THAT THE RATE FOR THIS RESIDENTIAL PROPERTY 
935  INSURANCE POLICY IS NOT SUBJECT TO FULL RATE REGULATION BY THE 
936  FLORIDA OFFICE OF INSURANCE REGULATION AND MAY BE HIGHER THAN 
937  RATES APPROVED BY THAT OFFICE. 
938         3. I UNDERSTAND THAT A RESIDENTIAL PROPERTY INSURANCE 
939  POLICY SUBJECT TO FULL RATE REGULATION REQUIREMENTS MAY BE 
940  AVAILABLE FROM CITIZENS PROPERTY INSURANCE CORPORATION. 
941         4. I UNDERSTAND THAT THE FLORIDA OFFICE OF INSURANCE 
942  REGULATION’S WEBSITE WWW.SHOPANDCOMPARERATES.COM CONTAINS 
943  RESIDENTIAL PROPERTY INSURANCE RATE COMPARISON INFORMATION. 
944         5. I UNDERSTAND THAT IF CITIZENS PROPERTY INSURANCE 
945  CORPORATION INCURS A DEFICIT BECAUSE OF HURRICANE LOSSES OR 
946  OTHER LOSSES, I MAY BE REQUIRED TO PAY AN ASSESSMENT BASED UPON 
947  THE PREMIUM FOR THIS POLICY AND THAT A POLICYHOLDER OF CITIZENS 
948  PROPERTY INSURANCE CORPORATION MAY BE REQUIRED TO PAY A 
949  DIFFERENT ASSESSMENT. 
950 
951         (5) The following types of residential property insurance 
952  policies are not eligible for rates established in accordance 
953  with s. 627.062(2)(l) and are not subject to the other 
954  provisions of this section: 
955         (a) Residential property insurance policies that exclude 
956  coverage for the perils of windstorm or hurricane. 
957         (b) Residential property insurance policies that are 
958  subject to a consent decree, agreement, understanding, or other 
959  arrangement between the insurer and the office relating to rates 
960  or premiums for policies removed from Citizens Property 
961  Insurance Corporation. 
962         (6) Notwithstanding s. 627.4133, an insurer that has issued 
963  a policy under this section shall provide the named insured 
964  written notice of nonrenewal at least 180 days before the 
965  effective date of the nonrenewal as to subsequent nonrenewals. 
966  However, this subsection does not prohibit an insurer from 
967  cancelling a policy as permitted under s. 627.4133. The offer of 
968  a policy at rates authorized by this section constitutes an 
969  offer to renew the policy at the rates specified in the offer 
970  and does not constitute a nonrenewal. 
971         Section 4. This act shall take effect January 1, 2011.