Bill Text: FL S0876 | 2010 | Regular Session | Comm Sub

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-Comm_Sub.html

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Florida Senate - 2010                              CS for SB 876 
 
By the Committee on Banking and Insurance; and Senators Bennett, 
Dockery, and Hill 
597-03648-10                                           2010876c1 
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; limiting the maximum average statewide 
8         increase for certain rate filings; preserving the 
9         authority of the Office of Insurance Regulation to 
10         disapprove rates as inadequate or disapprove a rate 
11         filing for using certain rating factors; authorizing 
12         the office to direct an insurer to make a specified 
13         type of rate filing under certain circumstances; 
14         amending s. 627.351, F.S.; providing requirements for 
15         the levy of the Citizens policyholder surcharge; 
16         prohibiting the corporation from levying certain 
17         regular assessments until after levying the full 
18         amount of a Citizens policyholder surcharge; requiring 
19         the corporation’s plan of operation to require agents 
20         to obtain an acknowledgement of potential surcharge 
21         and assessment liability from applicants and 
22         policyholders; requiring the corporation to 
23         permanently retain a copy of such acknowledgments; 
24         specifying that the acknowledgement creates a 
25         conclusive presumption of understanding and acceptance 
26         by the policyholder; creating s. 627.7031, F.S.; 
27         authorizing certain insurers to offer or renew 
28         policies at rates established under certain 
29         circumstances; prohibiting certain insurers from 
30         purchasing TICL option coverage from the Florida 
31         Hurricane Catastrophe Fund under certain 
32         circumstances; requiring that certain policies contain 
33         a specified rate notice; requiring insurers to offer 
34         applicants or insureds an estimate of the premium for 
35         a policy from Citizens Property Insurance Corporation 
36         reflecting similar coverage, limits, and deductibles; 
37         requiring applicants or insureds to provide a signed 
38         premium comparison acknowledgement; specifying 
39         criteria for insurer compliance with certain 
40         requirements; specifying acknowledgement contents; 
41         requiring insurers and agents to retain a copy of the 
42         acknowledgement for a specified time; specifying a 
43         presumption created by a signed acknowledgement; 
44         specifying types of residential property insurance 
45         policies that are not eligible for certain rates or 
46         subject to other requirements; requiring written 
47         notice of certain nonrenewals; preserving insurer 
48         authority to cancel policies; specifying a criterion 
49         for what constitutes an offer to renew a policy; 
50         providing an effective date. 
51 
52  Be It Enacted by the Legislature of the State of Florida: 
53 
54         Section 1. Paragraph (l) is added to subsection (2) of 
55  section 627.062, Florida Statutes, to read: 
56         627.062 Rate standards.— 
57         (2) As to all such classes of insurance: 
58         (l)1. An insurer complying with the requirements of s. 
59  627.7031 may use a rate for residential property insurance, as 
60  defined in s. 627.4025, different from the otherwise applicable 
61  filed rate as provided in this paragraph. 
62         2. Policies subject to this paragraph may not be counted in 
63  the calculation under s. 627.171(2). 
64         3. Such rates shall be filed with the office as a separate 
65  filing. The initial rates used by an insurer under this 
66  paragraph may not provide for rates that represent more than a 5 
67  percent statewide average rate increase over the most recently 
68  filed and approved rate. A rate filing made pursuant to this 
69  paragraph submitted in the year following the implementation of 
70  such initial rates may not provide for rates that represent more 
71  than a 10 percent statewide average rate increase in any one 
72  year over the rates in effect under this paragraph at the time 
73  of the filing. A rate filing made pursuant this paragraph 
74  submitted in the second year following the implementation of 
75  such initial rates, or in any subsequent year, may not provide 
76  for rates that represent more than a 15 percent statewide 
77  average rate increase in any one year over the rates in effect 
78  under this paragraph at the time of the filing. 
79         4. This paragraph does not affect the authority of the 
80  office to disapprove a rate as inadequate or to disapprove a 
81  rate filing for charging any insured or applicant a higher 
82  premium solely because of the insured’s or applicant’s race, 
83  color, creed, marital status, sex, or national origin. Upon 
84  finding that an insurer has used any such factor in charging an 
85  insured or applicant a higher premium, the office may direct the 
86  insurer to make a new filing for a new rate that does not use 
87  such factor. 
88 
89  The provisions of this subsection shall not apply to workers’ 
90  compensation and employer’s liability insurance and to motor 
91  vehicle insurance. 
92         Section 2. Paragraphs (g) through (ff) of subsection (6) of 
93  section 627.351, Florida Statutes, are redesignated as 
94  paragraphs (f) through (ee), respectively, present paragraph (f) 
95  of that subsection is redesignated as paragraph (ff), and 
96  paragraphs (b) and (c) of subsection (6) of section 627.351, 
97  Florida Statutes, are amended to read: 
98         627.351 Insurance risk apportionment plans.— 
99         (6) CITIZENS PROPERTY INSURANCE CORPORATION.— 
100         (b)1. All insurers authorized to write one or more subject 
101  lines of business in this state are subject to assessment by the 
102  corporation and, for the purposes of this subsection, are 
103  referred to collectively as “assessable insurers.” Insurers 
104  writing one or more subject lines of business in this state 
105  pursuant to part VIII of chapter 626 are not assessable 
106  insurers, but insureds who procure one or more subject lines of 
107  business in this state pursuant to part VIII of chapter 626 are 
108  subject to assessment by the corporation and are referred to 
109  collectively as “assessable insureds.” An authorized insurer’s 
110  assessment liability shall begin on the first day of the 
111  calendar year following the year in which the insurer was issued 
112  a certificate of authority to transact insurance for subject 
113  lines of business in this state and shall terminate 1 year after 
114  the end of the first calendar year during which the insurer no 
115  longer holds a certificate of authority to transact insurance 
116  for subject lines of business in this state. 
117         2.a. All revenues, assets, liabilities, losses, and 
118  expenses of the corporation shall be divided into three separate 
119  accounts as follows: 
120         (I) A personal lines account for personal residential 
121  policies issued by the corporation or issued by the Residential 
122  Property and Casualty Joint Underwriting Association and renewed 
123  by the corporation that provide comprehensive, multiperil 
124  coverage on risks that are not located in areas eligible for 
125  coverage in the Florida Windstorm Underwriting Association as 
126  those areas were defined on January 1, 2002, and for such 
127  policies that do not provide coverage for the peril of wind on 
128  risks that are located in such areas; 
129         (II) A commercial lines account for commercial residential 
130  and commercial nonresidential policies issued by the corporation 
131  or issued by the Residential Property and Casualty Joint 
132  Underwriting Association and renewed by the corporation that 
133  provide coverage for basic property perils on risks that are not 
134  located in areas eligible for coverage in the Florida Windstorm 
135  Underwriting Association as those areas were defined on January 
136  1, 2002, and for such policies that do not provide coverage for 
137  the peril of wind on risks that are located in such areas; and 
138         (III) A high-risk account for personal residential policies 
139  and commercial residential and commercial nonresidential 
140  property policies issued by the corporation or transferred to 
141  the corporation that provide coverage for the peril of wind on 
142  risks that are located in areas eligible for coverage in the 
143  Florida Windstorm Underwriting Association as those areas were 
144  defined on January 1, 2002. The corporation may offer policies 
145  that provide multiperil coverage and the corporation shall 
146  continue to offer policies that provide coverage only for the 
147  peril of wind for risks located in areas eligible for coverage 
148  in the high-risk account. In issuing multiperil coverage, the 
149  corporation may use its approved policy forms and rates for the 
150  personal lines account. An applicant or insured who is eligible 
151  to purchase a multiperil policy from the corporation may 
152  purchase a multiperil policy from an authorized insurer without 
153  prejudice to the applicant’s or insured’s eligibility to 
154  prospectively purchase a policy that provides coverage only for 
155  the peril of wind from the corporation. An applicant or insured 
156  who is eligible for a corporation policy that provides coverage 
157  only for the peril of wind may elect to purchase or retain such 
158  policy and also purchase or retain coverage excluding wind from 
159  an authorized insurer without prejudice to the applicant’s or 
160  insured’s eligibility to prospectively purchase a policy that 
161  provides multiperil coverage from the corporation. It is the 
162  goal of the Legislature that there would be an overall average 
163  savings of 10 percent or more for a policyholder who currently 
164  has a wind-only policy with the corporation, and an ex-wind 
165  policy with a voluntary insurer or the corporation, and who then 
166  obtains a multiperil policy from the corporation. It is the 
167  intent of the Legislature that the offer of multiperil coverage 
168  in the high-risk account be made and implemented in a manner 
169  that does not adversely affect the tax-exempt status of the 
170  corporation or creditworthiness of or security for currently 
171  outstanding financing obligations or credit facilities of the 
172  high-risk account, the personal lines account, or the commercial 
173  lines account. The high-risk account must also include quota 
174  share primary insurance under subparagraph (c)2. The area 
175  eligible for coverage under the high-risk account also includes 
176  the area within Port Canaveral, which is bordered on the south 
177  by the City of Cape Canaveral, bordered on the west by the 
178  Banana River, and bordered on the north by Federal Government 
179  property. 
180         b. The three separate accounts must be maintained as long 
181  as financing obligations entered into by the Florida Windstorm 
182  Underwriting Association or Residential Property and Casualty 
183  Joint Underwriting Association are outstanding, in accordance 
184  with the terms of the corresponding financing documents. When 
185  the financing obligations are no longer outstanding, in 
186  accordance with the terms of the corresponding financing 
187  documents, the corporation may use a single account for all 
188  revenues, assets, liabilities, losses, and expenses of the 
189  corporation. Consistent with the requirement of this 
190  subparagraph and prudent investment policies that minimize the 
191  cost of carrying debt, the board shall exercise its best efforts 
192  to retire existing debt or to obtain approval of necessary 
193  parties to amend the terms of existing debt, so as to structure 
194  the most efficient plan to consolidate the three separate 
195  accounts into a single account. By February 1, 2007, the board 
196  shall submit a report to the Financial Services Commission, the 
197  President of the Senate, and the Speaker of the House of 
198  Representatives which includes an analysis of consolidating the 
199  accounts, the actions the board has taken to minimize the cost 
200  of carrying debt, and its recommendations for executing the most 
201  efficient plan. 
202         c. Creditors of the Residential Property and Casualty Joint 
203  Underwriting Association and of the accounts specified in sub 
204  sub-subparagraphs a.(I) and (II) may have a claim against, and 
205  recourse to, the accounts referred to in sub-sub-subparagraphs 
206  a.(I) and (II) and shall have no claim against, or recourse to, 
207  the account referred to in sub-sub-subparagraph a.(III). 
208  Creditors of the Florida Windstorm Underwriting Association 
209  shall have a claim against, and recourse to, the account 
210  referred to in sub-sub-subparagraph a.(III) and shall have no 
211  claim against, or recourse to, the accounts referred to in sub 
212  sub-subparagraphs a.(I) and (II). 
213         d. Revenues, assets, liabilities, losses, and expenses not 
214  attributable to particular accounts shall be prorated among the 
215  accounts. 
216         e. The Legislature finds that the revenues of the 
217  corporation are revenues that are necessary to meet the 
218  requirements set forth in documents authorizing the issuance of 
219  bonds under this subsection. 
220         f. No part of the income of the corporation may inure to 
221  the benefit of any private person. 
222         3. With respect to a deficit in an account: 
223         a. After accounting for the Citizens policyholder surcharge 
224  imposed under sub-subparagraph i., when the remaining projected 
225  deficit incurred in a particular calendar year is not greater 
226  than 6 percent of the aggregate statewide direct written premium 
227  for the subject lines of business for the prior calendar year, 
228  the entire deficit shall be recovered through regular 
229  assessments of assessable insurers under paragraph (p) and 
230  assessable insureds. 
231         b. After accounting for the Citizens policyholder surcharge 
232  imposed under sub-subparagraph i., when the remaining projected 
233  deficit incurred in a particular calendar year exceeds 6 percent 
234  of the aggregate statewide direct written premium for the 
235  subject lines of business for the prior calendar year, the 
236  corporation shall levy regular assessments on assessable 
237  insurers under paragraph (p) and on assessable insureds in an 
238  amount equal to the greater of 6 percent of the deficit or 6 
239  percent of the aggregate statewide direct written premium for 
240  the subject lines of business for the prior calendar year. Any 
241  remaining deficit shall be recovered through emergency 
242  assessments under sub-subparagraph d. 
243         c. Each assessable insurer’s share of the amount being 
244  assessed under sub-subparagraph a. or sub-subparagraph b. shall 
245  be in the proportion that the assessable insurer’s direct 
246  written premium for the subject lines of business for the year 
247  preceding the assessment bears to the aggregate statewide direct 
248  written premium for the subject lines of business for that year. 
249  The assessment percentage applicable to each assessable insured 
250  is the ratio of the amount being assessed under sub-subparagraph 
251  a. or sub-subparagraph b. to the aggregate statewide direct 
252  written premium for the subject lines of business for the prior 
253  year. Assessments levied by the corporation on assessable 
254  insurers under sub-subparagraphs a. and b. shall be paid as 
255  required by the corporation’s plan of operation and paragraph 
256  (p). Assessments levied by the corporation on assessable 
257  insureds under sub-subparagraphs a. and b. shall be collected by 
258  the surplus lines agent at the time the surplus lines agent 
259  collects the surplus lines tax required by s. 626.932 and shall 
260  be paid to the Florida Surplus Lines Service Office at the time 
261  the surplus lines agent pays the surplus lines tax to the 
262  Florida Surplus Lines Service Office. Upon receipt of regular 
263  assessments from surplus lines agents, the Florida Surplus Lines 
264  Service Office shall transfer the assessments directly to the 
265  corporation as determined by the corporation. 
266         d. Upon a determination by the board of governors that a 
267  deficit in an account exceeds the amount that will be recovered 
268  through regular assessments under sub-subparagraph a. or sub 
269  subparagraph b., plus the amount that is expected to be 
270  recovered through surcharges under sub-subparagraph i., as to 
271  the remaining projected deficit the board shall levy, after 
272  verification by the office, emergency assessments, for as many 
273  years as necessary to cover the deficits, to be collected by 
274  assessable insurers and the corporation and collected from 
275  assessable insureds upon issuance or renewal of policies for 
276  subject lines of business, excluding National Flood Insurance 
277  policies. The amount of the emergency assessment collected in a 
278  particular year shall be a uniform percentage of that year’s 
279  direct written premium for subject lines of business and all 
280  accounts of the corporation, excluding National Flood Insurance 
281  Program policy premiums, as annually determined by the board and 
282  verified by the office. The office shall verify the arithmetic 
283  calculations involved in the board’s determination within 30 
284  days after receipt of the information on which the determination 
285  was based. Notwithstanding any other provision of law, the 
286  corporation and each assessable insurer that writes subject 
287  lines of business shall collect emergency assessments from its 
288  policyholders without such obligation being affected by any 
289  credit, limitation, exemption, or deferment. Emergency 
290  assessments levied by the corporation on assessable insureds 
291  shall be collected by the surplus lines agent at the time the 
292  surplus lines agent collects the surplus lines tax required by 
293  s. 626.932 and shall be paid to the Florida Surplus Lines 
294  Service Office at the time the surplus lines agent pays the 
295  surplus lines tax to the Florida Surplus Lines Service Office. 
296  The emergency assessments so collected shall be transferred 
297  directly to the corporation on a periodic basis as determined by 
298  the corporation and shall be held by the corporation solely in 
299  the applicable account. The aggregate amount of emergency 
300  assessments levied for an account under this sub-subparagraph in 
301  any calendar year may, at the discretion of the board of 
302  governors, be less than but may not exceed the greater of 10 
303  percent of the amount needed to cover the deficit, plus 
304  interest, fees, commissions, required reserves, and other costs 
305  associated with financing of the original deficit, or 10 percent 
306  of the aggregate statewide direct written premium for subject 
307  lines of business and for all accounts of the corporation for 
308  the prior year, plus interest, fees, commissions, required 
309  reserves, and other costs associated with financing the deficit. 
310         e. The corporation may pledge the proceeds of assessments, 
311  projected recoveries from the Florida Hurricane Catastrophe 
312  Fund, other insurance and reinsurance recoverables, policyholder 
313  surcharges and other surcharges, and other funds available to 
314  the corporation as the source of revenue for and to secure bonds 
315  issued under paragraph (p), bonds or other indebtedness issued 
316  under subparagraph (c)3., or lines of credit or other financing 
317  mechanisms issued or created under this subsection, or to retire 
318  any other debt incurred as a result of deficits or events giving 
319  rise to deficits, or in any other way that the board determines 
320  will efficiently recover such deficits. The purpose of the lines 
321  of credit or other financing mechanisms is to provide additional 
322  resources to assist the corporation in covering claims and 
323  expenses attributable to a catastrophe. As used in this 
324  subsection, the term “assessments” includes regular assessments 
325  under sub-subparagraph a., sub-subparagraph b., or subparagraph 
326  (p)1. and emergency assessments under sub-subparagraph d. 
327  Emergency assessments collected under sub-subparagraph d. are 
328  not part of an insurer’s rates, are not premium, and are not 
329  subject to premium tax, fees, or commissions; however, failure 
330  to pay the emergency assessment shall be treated as failure to 
331  pay premium. The emergency assessments under sub-subparagraph d. 
332  shall continue as long as any bonds issued or other indebtedness 
333  incurred with respect to a deficit for which the assessment was 
334  imposed remain outstanding, unless adequate provision has been 
335  made for the payment of such bonds or other indebtedness 
336  pursuant to the documents governing such bonds or other 
337  indebtedness. 
338         f. As used in this subsection for purposes of any deficit 
339  incurred on or after January 25, 2007, the term “subject lines 
340  of business” means insurance written by assessable insurers or 
341  procured by assessable insureds for all property and casualty 
342  lines of business in this state, but not including workers’ 
343  compensation or medical malpractice. As used in the sub 
344  subparagraph, the term “property and casualty lines of business” 
345  includes all lines of business identified on Form 2, Exhibit of 
346  Premiums and Losses, in the annual statement required of 
347  authorized insurers by s. 624.424 and any rule adopted under 
348  this section, except for those lines identified as accident and 
349  health insurance and except for policies written under the 
350  National Flood Insurance Program or the Federal Crop Insurance 
351  Program. For purposes of this sub-subparagraph, the term 
352  “workers’ compensation” includes both workers’ compensation 
353  insurance and excess workers’ compensation insurance. 
354         g. The Florida Surplus Lines Service Office shall determine 
355  annually the aggregate statewide written premium in subject 
356  lines of business procured by assessable insureds and shall 
357  report that information to the corporation in a form and at a 
358  time the corporation specifies to ensure that the corporation 
359  can meet the requirements of this subsection and the 
360  corporation’s financing obligations. 
361         h. The Florida Surplus Lines Service Office shall verify 
362  the proper application by surplus lines agents of assessment 
363  percentages for regular assessments and emergency assessments 
364  levied under this subparagraph on assessable insureds and shall 
365  assist the corporation in ensuring the accurate, timely 
366  collection and payment of assessments by surplus lines agents as 
367  required by the corporation. 
368         i.(I) If a deficit is incurred in any account in 2008 or 
369  thereafter, the board of governors shall levy a Citizens 
370  policyholder surcharge against all policyholders of the 
371  corporation. 
372         (II) The Citizens policyholder surcharge for a 12-month 
373  period, which shall be levied collected at the time of issuance 
374  or renewal of a policy, as a uniform percentage of the premium 
375  for the policy of up to 15 percent of such premium, which funds 
376  shall be used to offset the deficit. 
377         (III) The Citizens policyholder surcharge is payable upon 
378  cancellation or termination of the policy, upon renewal of the 
379  policy, or upon issuance of a new policy by Citizens within the 
380  first 12 months after the date of the levy or the period of time 
381  necessary to fully collect the Citizens policyholder surcharge 
382  amount. 
383         (IV) The corporation may not levy any regular assessments 
384  under paragraph (q) pursuant to sub-subparagraph a. or sub 
385  subparagraph b. with respect to a particular year’s deficit 
386  until the corporation has first levied a Citizens policyholder 
387  surcharge under this sub-subparagraph in the full amount 
388  authorized by this sub-subparagraph. 
389         (V) Citizens policyholder surcharges under this sub 
390  subparagraph are not considered premium and are not subject to 
391  commissions, fees, or premium taxes. However, failure to pay 
392  such surcharges shall be treated as failure to pay premium. 
393         j. If the amount of any assessments or surcharges collected 
394  from corporation policyholders, assessable insurers or their 
395  policyholders, or assessable insureds exceeds the amount of the 
396  deficits, such excess amounts shall be remitted to and retained 
397  by the corporation in a reserve to be used by the corporation, 
398  as determined by the board of governors and approved by the 
399  office, to pay claims or reduce any past, present, or future 
400  plan-year deficits or to reduce outstanding debt. 
401         (c) The plan of operation of the corporation: 
402         1. Must provide for adoption of residential property and 
403  casualty insurance policy forms and commercial residential and 
404  nonresidential property insurance forms, which forms must be 
405  approved by the office prior to use. The corporation shall adopt 
406  the following policy forms: 
407         a. Standard personal lines policy forms that are 
408  comprehensive multiperil policies providing full coverage of a 
409  residential property equivalent to the coverage provided in the 
410  private insurance market under an HO-3, HO-4, or HO-6 policy. 
411         b. Basic personal lines policy forms that are policies 
412  similar to an HO-8 policy or a dwelling fire policy that provide 
413  coverage meeting the requirements of the secondary mortgage 
414  market, but which coverage is more limited than the coverage 
415  under a standard policy. 
416         c. Commercial lines residential and nonresidential policy 
417  forms that are generally similar to the basic perils of full 
418  coverage obtainable for commercial residential structures and 
419  commercial nonresidential structures in the admitted voluntary 
420  market. 
421         d. Personal lines and commercial lines residential property 
422  insurance forms that cover the peril of wind only. The forms are 
423  applicable only to residential properties located in areas 
424  eligible for coverage under the high-risk account referred to in 
425  sub-subparagraph (b)2.a. 
426         e. Commercial lines nonresidential property insurance forms 
427  that cover the peril of wind only. The forms are applicable only 
428  to nonresidential properties located in areas eligible for 
429  coverage under the high-risk account referred to in sub 
430  subparagraph (b)2.a. 
431         f. The corporation may adopt variations of the policy forms 
432  listed in sub-subparagraphs a.-e. that contain more restrictive 
433  coverage. 
434         2.a. Must provide that the corporation adopt a program in 
435  which the corporation and authorized insurers enter into quota 
436  share primary insurance agreements for hurricane coverage, as 
437  defined in s. 627.4025(2)(a), for eligible risks, and adopt 
438  property insurance forms for eligible risks which cover the 
439  peril of wind only. As used in this subsection, the term: 
440         (I) “Quota share primary insurance” means an arrangement in 
441  which the primary hurricane coverage of an eligible risk is 
442  provided in specified percentages by the corporation and an 
443  authorized insurer. The corporation and authorized insurer are 
444  each solely responsible for a specified percentage of hurricane 
445  coverage of an eligible risk as set forth in a quota share 
446  primary insurance agreement between the corporation and an 
447  authorized insurer and the insurance contract. The 
448  responsibility of the corporation or authorized insurer to pay 
449  its specified percentage of hurricane losses of an eligible 
450  risk, as set forth in the quota share primary insurance 
451  agreement, may not be altered by the inability of the other 
452  party to the agreement to pay its specified percentage of 
453  hurricane losses. Eligible risks that are provided hurricane 
454  coverage through a quota share primary insurance arrangement 
455  must be provided policy forms that set forth the obligations of 
456  the corporation and authorized insurer under the arrangement, 
457  clearly specify the percentages of quota share primary insurance 
458  provided by the corporation and authorized insurer, and 
459  conspicuously and clearly state that neither the authorized 
460  insurer nor the corporation may be held responsible beyond its 
461  specified percentage of coverage of hurricane losses. 
462         (II) “Eligible risks” means personal lines residential and 
463  commercial lines residential risks that meet the underwriting 
464  criteria of the corporation and are located in areas that were 
465  eligible for coverage by the Florida Windstorm Underwriting 
466  Association on January 1, 2002. 
467         b. The corporation may enter into quota share primary 
468  insurance agreements with authorized insurers at corporation 
469  coverage levels of 90 percent and 50 percent. 
470         c. If the corporation determines that additional coverage 
471  levels are necessary to maximize participation in quota share 
472  primary insurance agreements by authorized insurers, the 
473  corporation may establish additional coverage levels. However, 
474  the corporation’s quota share primary insurance coverage level 
475  may not exceed 90 percent. 
476         d. Any quota share primary insurance agreement entered into 
477  between an authorized insurer and the corporation must provide 
478  for a uniform specified percentage of coverage of hurricane 
479  losses, by county or territory as set forth by the corporation 
480  board, for all eligible risks of the authorized insurer covered 
481  under the quota share primary insurance agreement. 
482         e. Any quota share primary insurance agreement entered into 
483  between an authorized insurer and the corporation is subject to 
484  review and approval by the office. However, such agreement shall 
485  be authorized only as to insurance contracts entered into 
486  between an authorized insurer and an insured who is already 
487  insured by the corporation for wind coverage. 
488         f. For all eligible risks covered under quota share primary 
489  insurance agreements, the exposure and coverage levels for both 
490  the corporation and authorized insurers shall be reported by the 
491  corporation to the Florida Hurricane Catastrophe Fund. For all 
492  policies of eligible risks covered under quota share primary 
493  insurance agreements, the corporation and the authorized insurer 
494  shall maintain complete and accurate records for the purpose of 
495  exposure and loss reimbursement audits as required by Florida 
496  Hurricane Catastrophe Fund rules. The corporation and the 
497  authorized insurer shall each maintain duplicate copies of 
498  policy declaration pages and supporting claims documents. 
499         g. The corporation board shall establish in its plan of 
500  operation standards for quota share agreements which ensure that 
501  there is no discriminatory application among insurers as to the 
502  terms of quota share agreements, pricing of quota share 
503  agreements, incentive provisions if any, and consideration paid 
504  for servicing policies or adjusting claims. 
505         h. The quota share primary insurance agreement between the 
506  corporation and an authorized insurer must set forth the 
507  specific terms under which coverage is provided, including, but 
508  not limited to, the sale and servicing of policies issued under 
509  the agreement by the insurance agent of the authorized insurer 
510  producing the business, the reporting of information concerning 
511  eligible risks, the payment of premium to the corporation, and 
512  arrangements for the adjustment and payment of hurricane claims 
513  incurred on eligible risks by the claims adjuster and personnel 
514  of the authorized insurer. Entering into a quota sharing 
515  insurance agreement between the corporation and an authorized 
516  insurer shall be voluntary and at the discretion of the 
517  authorized insurer. 
518         3. May provide that the corporation may employ or otherwise 
519  contract with individuals or other entities to provide 
520  administrative or professional services that may be appropriate 
521  to effectuate the plan. The corporation shall have the power to 
522  borrow funds, by issuing bonds or by incurring other 
523  indebtedness, and shall have other powers reasonably necessary 
524  to effectuate the requirements of this subsection, including, 
525  without limitation, the power to issue bonds and incur other 
526  indebtedness in order to refinance outstanding bonds or other 
527  indebtedness. The corporation may, but is not required to, seek 
528  judicial validation of its bonds or other indebtedness under 
529  chapter 75. The corporation may issue bonds or incur other 
530  indebtedness, or have bonds issued on its behalf by a unit of 
531  local government pursuant to subparagraph (p)2., in the absence 
532  of a hurricane or other weather-related event, upon a 
533  determination by the corporation, subject to approval by the 
534  office, that such action would enable it to efficiently meet the 
535  financial obligations of the corporation and that such 
536  financings are reasonably necessary to effectuate the 
537  requirements of this subsection. The corporation is authorized 
538  to take all actions needed to facilitate tax-free status for any 
539  such bonds or indebtedness, including formation of trusts or 
540  other affiliated entities. The corporation shall have the 
541  authority to pledge assessments, projected recoveries from the 
542  Florida Hurricane Catastrophe Fund, other reinsurance 
543  recoverables, market equalization and other surcharges, and 
544  other funds available to the corporation as security for bonds 
545  or other indebtedness. In recognition of s. 10, Art. I of the 
546  State Constitution, prohibiting the impairment of obligations of 
547  contracts, it is the intent of the Legislature that no action be 
548  taken whose purpose is to impair any bond indenture or financing 
549  agreement or any revenue source committed by contract to such 
550  bond or other indebtedness. 
551         4.a. Must require that the corporation operate subject to 
552  the supervision and approval of a board of governors consisting 
553  of eight individuals who are residents of this state, from 
554  different geographical areas of this state. The Governor, the 
555  Chief Financial Officer, the President of the Senate, and the 
556  Speaker of the House of Representatives shall each appoint two 
557  members of the board. At least one of the two members appointed 
558  by each appointing officer must have demonstrated expertise in 
559  insurance. The Chief Financial Officer shall designate one of 
560  the appointees as chair. All board members serve at the pleasure 
561  of the appointing officer. All members of the board of governors 
562  are subject to removal at will by the officers who appointed 
563  them. All board members, including the chair, must be appointed 
564  to serve for 3-year terms beginning annually on a date 
565  designated by the plan. However, for the first term beginning on 
566  or after July 1, 2009, each appointing officer shall appoint one 
567  member of the board for a 2-year term and one member for a 3 
568  year term. Any board vacancy shall be filled for the unexpired 
569  term by the appointing officer. The Chief Financial Officer 
570  shall appoint a technical advisory group to provide information 
571  and advice to the board of governors in connection with the 
572  board’s duties under this subsection. The executive director and 
573  senior managers of the corporation shall be engaged by the board 
574  and serve at the pleasure of the board. Any executive director 
575  appointed on or after July 1, 2006, is subject to confirmation 
576  by the Senate. The executive director is responsible for 
577  employing other staff as the corporation may require, subject to 
578  review and concurrence by the board. 
579         b. The board shall create a Market Accountability Advisory 
580  Committee to assist the corporation in developing awareness of 
581  its rates and its customer and agent service levels in 
582  relationship to the voluntary market insurers writing similar 
583  coverage. The members of the advisory committee shall consist of 
584  the following 11 persons, one of whom must be elected chair by 
585  the members of the committee: four representatives, one 
586  appointed by the Florida Association of Insurance Agents, one by 
587  the Florida Association of Insurance and Financial Advisors, one 
588  by the Professional Insurance Agents of Florida, and one by the 
589  Latin American Association of Insurance Agencies; three 
590  representatives appointed by the insurers with the three highest 
591  voluntary market share of residential property insurance 
592  business in the state; one representative from the Office of 
593  Insurance Regulation; one consumer appointed by the board who is 
594  insured by the corporation at the time of appointment to the 
595  committee; one representative appointed by the Florida 
596  Association of Realtors; and one representative appointed by the 
597  Florida Bankers Association. All members must serve for 3-year 
598  terms and may serve for consecutive terms. The committee shall 
599  report to the corporation at each board meeting on insurance 
600  market issues which may include rates and rate competition with 
601  the voluntary market; service, including policy issuance, claims 
602  processing, and general responsiveness to policyholders, 
603  applicants, and agents; and matters relating to depopulation. 
604         5. Must provide a procedure for determining the eligibility 
605  of a risk for coverage, as follows: 
606         a. Subject to the provisions of s. 627.3517, with respect 
607  to personal lines residential risks, if the risk is offered 
608  coverage from an authorized insurer at the insurer’s approved 
609  rate under either a standard policy including wind coverage or, 
610  if consistent with the insurer’s underwriting rules as filed 
611  with the office, a basic policy including wind coverage, for a 
612  new application to the corporation for coverage, the risk is not 
613  eligible for any policy issued by the corporation unless the 
614  premium for coverage from the authorized insurer is more than 15 
615  percent greater than the premium for comparable coverage from 
616  the corporation. If the risk is not able to obtain any such 
617  offer, the risk is eligible for either a standard policy 
618  including wind coverage or a basic policy including wind 
619  coverage issued by the corporation; however, if the risk could 
620  not be insured under a standard policy including wind coverage 
621  regardless of market conditions, the risk shall be eligible for 
622  a basic policy including wind coverage unless rejected under 
623  subparagraph 8. However, with regard to a policyholder of the 
624  corporation or a policyholder removed from the corporation 
625  through an assumption agreement until the end of the assumption 
626  period, the policyholder remains eligible for coverage from the 
627  corporation regardless of any offer of coverage from an 
628  authorized insurer or surplus lines insurer. The corporation 
629  shall determine the type of policy to be provided on the basis 
630  of objective standards specified in the underwriting manual and 
631  based on generally accepted underwriting practices. 
632         (I) If the risk accepts an offer of coverage through the 
633  market assistance plan or an offer of coverage through a 
634  mechanism established by the corporation before a policy is 
635  issued to the risk by the corporation or during the first 30 
636  days of coverage by the corporation, and the producing agent who 
637  submitted the application to the plan or to the corporation is 
638  not currently appointed by the insurer, the insurer shall: 
639         (A) Pay to the producing agent of record of the policy, for 
640  the first year, an amount that is the greater of the insurer’s 
641  usual and customary commission for the type of policy written or 
642  a fee equal to the usual and customary commission of the 
643  corporation; or 
644         (B) Offer to allow the producing agent of record of the 
645  policy to continue servicing the policy for a period of not less 
646  than 1 year and offer to pay the agent the greater of the 
647  insurer’s or the corporation’s usual and customary commission 
648  for the type of policy written. 
649 
650  If the producing agent is unwilling or unable to accept 
651  appointment, the new insurer shall pay the agent in accordance 
652  with sub-sub-sub-subparagraph (A). 
653         (II) When the corporation enters into a contractual 
654  agreement for a take-out plan, the producing agent of record of 
655  the corporation policy is entitled to retain any unearned 
656  commission on the policy, and the insurer shall: 
657         (A) Pay to the producing agent of record of the corporation 
658  policy, for the first year, an amount that is the greater of the 
659  insurer’s usual and customary commission for the type of policy 
660  written or a fee equal to the usual and customary commission of 
661  the corporation; or 
662         (B) Offer to allow the producing agent of record of the 
663  corporation policy to continue servicing the policy for a period 
664  of not less than 1 year and offer to pay the agent the greater 
665  of the insurer’s or the corporation’s usual and customary 
666  commission for the type of policy written. 
667 
668  If the producing agent is unwilling or unable to accept 
669  appointment, the new insurer shall pay the agent in accordance 
670  with sub-sub-sub-subparagraph (A). 
671         b. With respect to commercial lines residential risks, for 
672  a new application to the corporation for coverage, if the risk 
673  is offered coverage under a policy including wind coverage from 
674  an authorized insurer at its approved rate, the risk is not 
675  eligible for any policy issued by the corporation unless the 
676  premium for coverage from the authorized insurer is more than 15 
677  percent greater than the premium for comparable coverage from 
678  the corporation. If the risk is not able to obtain any such 
679  offer, the risk is eligible for a policy including wind coverage 
680  issued by the corporation. However, with regard to a 
681  policyholder of the corporation or a policyholder removed from 
682  the corporation through an assumption agreement until the end of 
683  the assumption period, the policyholder remains eligible for 
684  coverage from the corporation regardless of any offer of 
685  coverage from an authorized insurer or surplus lines insurer. 
686         (I) If the risk accepts an offer of coverage through the 
687  market assistance plan or an offer of coverage through a 
688  mechanism established by the corporation before a policy is 
689  issued to the risk by the corporation or during the first 30 
690  days of coverage by the corporation, and the producing agent who 
691  submitted the application to the plan or the corporation is not 
692  currently appointed by the insurer, the insurer shall: 
693         (A) Pay to the producing agent of record of the policy, for 
694  the first year, an amount that is the greater of the insurer’s 
695  usual and customary commission for the type of policy written or 
696  a fee equal to the usual and customary commission of the 
697  corporation; or 
698         (B) Offer to allow the producing agent of record of the 
699  policy to continue servicing the policy for a period of not less 
700  than 1 year and offer to pay the agent the greater of the 
701  insurer’s or the corporation’s usual and customary commission 
702  for the type of policy written. 
703 
704  If the producing agent is unwilling or unable to accept 
705  appointment, the new insurer shall pay the agent in accordance 
706  with sub-sub-sub-subparagraph (A). 
707         (II) When the corporation enters into a contractual 
708  agreement for a take-out plan, the producing agent of record of 
709  the corporation policy is entitled to retain any unearned 
710  commission on the policy, and the insurer shall: 
711         (A) Pay to the producing agent of record of the corporation 
712  policy, for the first year, an amount that is the greater of the 
713  insurer’s usual and customary commission for the type of policy 
714  written or a fee equal to the usual and customary commission of 
715  the corporation; or 
716         (B) Offer to allow the producing agent of record of the 
717  corporation policy to continue servicing the policy for a period 
718  of not less than 1 year and offer to pay the agent the greater 
719  of the insurer’s or the corporation’s usual and customary 
720  commission for the type of policy written. 
721 
722  If the producing agent is unwilling or unable to accept 
723  appointment, the new insurer shall pay the agent in accordance 
724  with sub-sub-sub-subparagraph (A). 
725         c. For purposes of determining comparable coverage under 
726  sub-subparagraphs a. and b., the comparison shall be based on 
727  those forms and coverages that are reasonably comparable. The 
728  corporation may rely on a determination of comparable coverage 
729  and premium made by the producing agent who submits the 
730  application to the corporation, made in the agent’s capacity as 
731  the corporation’s agent. A comparison may be made solely of the 
732  premium with respect to the main building or structure only on 
733  the following basis: the same coverage A or other building 
734  limits; the same percentage hurricane deductible that applies on 
735  an annual basis or that applies to each hurricane for commercial 
736  residential property; the same percentage of ordinance and law 
737  coverage, if the same limit is offered by both the corporation 
738  and the authorized insurer; the same mitigation credits, to the 
739  extent the same types of credits are offered both by the 
740  corporation and the authorized insurer; the same method for loss 
741  payment, such as replacement cost or actual cash value, if the 
742  same method is offered both by the corporation and the 
743  authorized insurer in accordance with underwriting rules; and 
744  any other form or coverage that is reasonably comparable as 
745  determined by the board. If an application is submitted to the 
746  corporation for wind-only coverage in the high-risk account, the 
747  premium for the corporation’s wind-only policy plus the premium 
748  for the ex-wind policy that is offered by an authorized insurer 
749  to the applicant shall be compared to the premium for multiperil 
750  coverage offered by an authorized insurer, subject to the 
751  standards for comparison specified in this subparagraph. If the 
752  corporation or the applicant requests from the authorized 
753  insurer a breakdown of the premium of the offer by types of 
754  coverage so that a comparison may be made by the corporation or 
755  its agent and the authorized insurer refuses or is unable to 
756  provide such information, the corporation may treat the offer as 
757  not being an offer of coverage from an authorized insurer at the 
758  insurer’s approved rate. 
759         6. Must include rules for classifications of risks and 
760  rates therefor. 
761         7. Must provide that if premium and investment income for 
762  an account attributable to a particular calendar year are in 
763  excess of projected losses and expenses for the account 
764  attributable to that year, such excess shall be held in surplus 
765  in the account. Such surplus shall be available to defray 
766  deficits in that account as to future years and shall be used 
767  for that purpose prior to assessing assessable insurers and 
768  assessable insureds as to any calendar year. 
769         8. Must provide objective criteria and procedures to be 
770  uniformly applied for all applicants in determining whether an 
771  individual risk is so hazardous as to be uninsurable. In making 
772  this determination and in establishing the criteria and 
773  procedures, the following shall be considered: 
774         a. Whether the likelihood of a loss for the individual risk 
775  is substantially higher than for other risks of the same class; 
776  and 
777         b. Whether the uncertainty associated with the individual 
778  risk is such that an appropriate premium cannot be determined. 
779 
780  The acceptance or rejection of a risk by the corporation shall 
781  be construed as the private placement of insurance, and the 
782  provisions of chapter 120 shall not apply. 
783         9. Must provide that the corporation shall make its best 
784  efforts to procure catastrophe reinsurance at reasonable rates, 
785  to cover its projected 100-year probable maximum loss as 
786  determined by the board of governors. 
787         10. The policies issued by the corporation must provide 
788  that, if the corporation or the market assistance plan obtains 
789  an offer from an authorized insurer to cover the risk at its 
790  approved rates, the risk is no longer eligible for renewal 
791  through the corporation, except as otherwise provided in this 
792  subsection. 
793         11. Corporation policies and applications must include a 
794  notice that the corporation policy could, under this section, be 
795  replaced with a policy issued by an authorized insurer that does 
796  not provide coverage identical to the coverage provided by the 
797  corporation. The notice shall also specify that acceptance of 
798  corporation coverage creates a conclusive presumption that the 
799  applicant or policyholder is aware of this potential. 
800         12. May establish, subject to approval by the office, 
801  different eligibility requirements and operational procedures 
802  for any line or type of coverage for any specified county or 
803  area if the board determines that such changes to the 
804  eligibility requirements and operational procedures are 
805  justified due to the voluntary market being sufficiently stable 
806  and competitive in such area or for such line or type of 
807  coverage and that consumers who, in good faith, are unable to 
808  obtain insurance through the voluntary market through ordinary 
809  methods would continue to have access to coverage from the 
810  corporation. When coverage is sought in connection with a real 
811  property transfer, such requirements and procedures shall not 
812  provide for an effective date of coverage later than the date of 
813  the closing of the transfer as established by the transferor, 
814  the transferee, and, if applicable, the lender. 
815         13. Must provide that, with respect to the high-risk 
816  account, any assessable insurer with a surplus as to 
817  policyholders of $25 million or less writing 25 percent or more 
818  of its total countrywide property insurance premiums in this 
819  state may petition the office, within the first 90 days of each 
820  calendar year, to qualify as a limited apportionment company. A 
821  regular assessment levied by the corporation on a limited 
822  apportionment company for a deficit incurred by the corporation 
823  for the high-risk account in 2006 or thereafter may be paid to 
824  the corporation on a monthly basis as the assessments are 
825  collected by the limited apportionment company from its insureds 
826  pursuant to s. 627.3512, but the regular assessment must be paid 
827  in full within 12 months after being levied by the corporation. 
828  A limited apportionment company shall collect from its 
829  policyholders any emergency assessment imposed under sub 
830  subparagraph (b)3.d. The plan shall provide that, if the office 
831  determines that any regular assessment will result in an 
832  impairment of the surplus of a limited apportionment company, 
833  the office may direct that all or part of such assessment be 
834  deferred as provided in subparagraph (p)4. However, there shall 
835  be no limitation or deferment of an emergency assessment to be 
836  collected from policyholders under sub-subparagraph (b)3.d. 
837         14. Must provide that the corporation appoint as its 
838  licensed agents only those agents who also hold an appointment 
839  as defined in s. 626.015(3) with an insurer who at the time of 
840  the agent’s initial appointment by the corporation is authorized 
841  to write and is actually writing personal lines residential 
842  property coverage, commercial residential property coverage, or 
843  commercial nonresidential property coverage within the state. 
844         15. Must provide, by July 1, 2007, a premium payment plan 
845  option to its policyholders which allows at a minimum for 
846  quarterly and semiannual payment of premiums. A monthly payment 
847  plan may, but is not required to, be offered. 
848         16. Must limit coverage on mobile homes or manufactured 
849  homes built prior to 1994 to actual cash value of the dwelling 
850  rather than replacement costs of the dwelling. 
851         17. May provide such limits of coverage as the board 
852  determines, consistent with the requirements of this subsection. 
853         18. May require commercial property to meet specified 
854  hurricane mitigation construction features as a condition of 
855  eligibility for coverage. 
856         19.a. Shall require the agent to obtain from any applicant 
857  for coverage the following acknowledgement, signed by the 
858  applicant, and shall require the agent of record to obtain the 
859  following acknowledgment from each corporation policyholder, 
860  signed by the policyholder, prior to the policy’s first renewal 
861  after the effective date of this act: 
862 
863        ACKNOWLEDGEMENT OF POTENTIAL SURCHARGE AND ASSESSMENT 
864                             LIABILITY: 
865         1. I UNDERSTAND, AS A CITIZENS PROPERTY INSURANCE 
866         CORPORATION POLICYHOLDER, THAT IF THE CORPORATION 
867         SUSTAINS A DEFICIT AS A RESULT OF HURRICANE LOSSES OR 
868         FOR ANY OTHER REASON, MY POLICY COULD BE SUBJECT TO 
869         CITIZENS POLICYHOLDER SURCHARGES, WHICH WOULD BE DUE 
870         AND PAYABLE UPON RENEWAL, CANCELLATION, OR TERMINATION 
871         OF THE POLICY, AND THAT THE SURCHARGES COULD BE AS 
872         HIGH AS 15 PERCENT OF MY PREMIUM FOR DEFICITS IN EACH 
873         OF THREE CITIZENS ACCOUNTS, OR A DIFFERENT AMOUNT AS 
874         ESTABLISHED BY THE FLORIDA LEGISLATURE. 
875         2. I ALSO UNDERSTAND THAT I MAY BE SUBJECT TO 
876         EMERGENCY ASSESSMENTS TO THE SAME EXTENT AS 
877         POLICYHOLDERS OF OTHER INSURANCE COMPANIES. 
878 
879         b. The corporation shall permanently maintain a signed copy 
880  of the signed acknowledgement required by this subparagraph, and 
881  the agent may also retain a copy. 
882         c. The signed acknowledgement form creates a conclusive 
883  presumption that the policyholder understood and accepted his or 
884  her potential surcharge and assessment liability as a Citizens 
885  policyholder. 
886         Section 3. Section 627.7031, Florida Statutes, is created 
887  to read: 
888         627.7031 Residential property insurance option.— 
889         (1) An insurer holding a certificate of authority to write 
890  property insurance in this state may offer or renew policies at 
891  rates established in accordance with s. 627.062(2)(l), subject 
892  to all of the requirements and prohibitions of this section. 
893         (2) An insurer offering or renewing policies at rates 
894  established in accordance with s. 627.062(2)(l) may not purchase 
895  coverage from the Florida Hurricane Catastrophe Fund under the 
896  temporary increase in coverage limit option under s. 
897  215.555(17). 
898         (3)(a) Before the effective date of a newly issued or 
899  renewal policy at rates established in accordance with s. 
900  627.062(2)(l), the applicant or insured must be given the 
901  following notice, printed in at least 12-point boldfaced type: 
902 
903         THE RATE FOR THIS POLICY IS NOT SUBJECT TO FULL RATE 
904         REGULATION BY THE FLORIDA OFFICE OF INSURANCE 
905         REGULATION AND MAY BE HIGHER THAN RATES APPROVED BY 
906         THAT OFFICE. A RESIDENTIAL PROPERTY POLICY SUBJECT TO 
907         FULL RATE REGULATION REQUIREMENTS MAY BE AVAILABLE 
908         FROM THIS INSURER, ANOTHER INSURER, OR CITIZENS 
909         PROPERTY INSURANCE CORPORATION. PLEASE DISCUSS YOUR 
910         POLICY OPTIONS WITH AN INSURANCE AGENT WHO CAN PROVIDE 
911         A CITIZENS QUOTE. YOU MAY WISH TO VIEW THE OFFICE OF 
912         INSURANCE REGULATION’S WEBSITE AT 
913         WWW.SHOPANDCOMPARERATES.COM FOR MORE INFORMATION ABOUT 
914         CHOICES AVAILABLE TO YOU. 
915 
916         (b) For policies renewed at a rate established in 
917  accordance with s. 627.062(2)(l), the notice described in 
918  paragraph (a) must be provided in writing at the same time as 
919  the renewal notice on a document separate from the renewal 
920  notice, but may be contained within the same mailing as the 
921  renewal notice. 
922         (4) Before the effective date of a newly issued policy at 
923  rates established in accordance with s. 627.062(2)(l), or before 
924  the effective date of the first renewal at rates established in 
925  accordance with s. 627.062(2)(l) of a policy originally issued 
926  before the effective date of this section, the applicant or 
927  insured must: 
928         (a) Be provided or offered, for comparison purposes, an 
929  estimate of the premium for a policy from Citizens Property 
930  Insurance Corporation reflecting substantially similar 
931  coverages, limits, and deductibles to the extent available. 
932         (b) Provide the insurer or agent with a signed copy of the 
933  following acknowledgement form, which must be retained by the 
934  insurer or agent for at least 3 years. If the acknowledgement 
935  form is signed by the insured or if the insured remits payment 
936  in the amount of the rate established in accordance with s. 
937  627.062(2)(l) after being mailed or otherwise provided the 
938  acknowledgement form specified in this paragraph, and after 
939  being mailed, otherwise provided, or offered the comparison 
940  specified in paragraph (a), an insurer renewing a policy at such 
941  rate shall be deemed to comply with this section, and it is 
942  presumed that the insured has been informed and understands the 
943  information contained in the comparison and acknowledgement 
944  forms: 
945 
946                           ACKNOWLEDGEMENT 
947         1. I HAVE REVIEWED THE REQUIRED DISCLOSURES AND 
948         THE REQUIRED PREMIUM COMPARISON. 
949         2. I UNDERSTAND THAT THE RATE FOR THIS 
950         RESIDENTIAL PROPERTY INSURANCE POLICY IS NOT SUBJECT 
951         TO FULL RATE REGULATION BY THE FLORIDA OFFICE OF 
952         INSURANCE REGULATION AND MAY BE HIGHER THAN RATES 
953         APPROVED BY THAT OFFICE. 
954         3. I UNDERSTAND THAT A RESIDENTIAL PROPERTY 
955         INSURANCE POLICY SUBJECT TO FULL RATE REGULATION 
956         REQUIREMENTS MAY BE AVAILABLE FROM CITIZENS PROPERTY 
957         INSURANCE CORPORATION. 
958         4. I UNDERSTAND THAT THE FLORIDA OFFICE OF 
959         INSURANCE REGULATION’S WEBSITE 
960         WWW.SHOPANDCOMPARERATES.COM CONTAINS RESIDENTIAL 
961         PROPERTY INSURANCE RATE COMPARISON INFORMATION. 
962         5. I UNDERSTAND THAT IF CITIZENS PROPERTY 
963         INSURANCE CORPORATION INCURS A DEFICIT BECAUSE OF 
964         HURRICANE LOSSES OR OTHER LOSSES, I MAY BE REQUIRED TO 
965         PAY AN ASSESSMENT BASED UPON THE PREMIUM FOR THIS 
966         POLICY AND THAT A POLICYHOLDER OF CITIZENS PROPERTY 
967         INSURANCE CORPORATION MAY BE REQUIRED TO PAY A 
968         DIFFERENT ASSESSMENT. 
969 
970         (5) The following types of residential property insurance 
971  policies are not eligible for rates established in accordance 
972  with s. 627.062(2)(l) and are not subject to the other 
973  provisions of this section: 
974         (a) Residential property insurance policies that exclude 
975  coverage for the perils of windstorm or hurricane. 
976         (b) Residential property insurance policies that are 
977  subject to a consent decree, agreement, understanding, or other 
978  arrangement between the insurer and the office relating to rates 
979  or premiums for policies removed from Citizens Property 
980  Insurance Corporation. 
981         (6) Notwithstanding s. 627.4133, an insurer that has issued 
982  a policy under this section shall provide the named insured 
983  written notice of nonrenewal at least 180 days before the 
984  effective date of the nonrenewal as to subsequent nonrenewals. 
985  However, this subsection does not prohibit an insurer from 
986  cancelling a policy as permitted under s. 627.4133. The offer of 
987  a policy at rates authorized by this section constitutes an 
988  offer to renew the policy at the rates specified in the offer 
989  and does not constitute a nonrenewal. 
990         Section 4. This act shall take effect January 1, 2011.