Bill Text: FL S0876 | 2010 | Regular Session | Comm Sub
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
Florida Senate - 2010 CS for CS for SB 876 By the Committees on General Government Appropriations; and Banking and Insurance; and Senators Bennett, Dockery, and Hill 601-04794-10 2010876c2 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 filing must be accompanied by an actuary’s 66 certification stating that the filing was prepared in accordance 67 with current actuarial standards of practice of the Actuarial 68 Standards Board and that the rates are within a range consistent 69 with applicable actuarial principles or, when the percentage 70 limitations of this paragraph do not allow for a rate within a 71 range consistent with applicable actuarial principles, the 72 certification must state that the rates are below such range. 73 The initial rates used by an insurer under this paragraph may 74 not provide for rates that represent more than a 10 percent 75 statewide average rate increase over the most recently filed and 76 approved rate. A rate filing made pursuant to this paragraph 77 submitted in any year following the implementation of such 78 initial rates may not provide for rates that represent more than 79 a 10 percent statewide average rate increase in any one year 80 over the rates in effect under this paragraph at the time of the 81 filing. A rate filing made pursuant to this paragraph may not 82 provide for a percentage rate increase as to any one 83 policyholder which exceeds two times the statewide average rate 84 increase provided in the filing. 85 4. This paragraph does not affect the authority of the 86 office to disapprove a rate as inadequate or to disapprove a 87 rate filing for charging any insured or applicant a higher 88 premium solely because of the insured’s or applicant’s race, 89 color, creed, marital status, sex, or national origin. Upon 90 finding that an insurer has used any such factor in charging an 91 insured or applicant a higher premium, the office may direct the 92 insurer to make a new filing for a new rate that does not use 93 such factor. 94 95 The provisions of this subsection shall not apply to workers’ 96 compensation and employer’s liability insurance and to motor 97 vehicle insurance. 98 Section 2. Paragraphs (b) and (c) of subsection (6) of 99 section 627.351, Florida Statutes, are amended, present 100 paragraphs (g) through (ff) of subsection (6) of that section 101 are redesignated as paragraphs (f) through (ee), respectively, 102 and present paragraph (f) of that subsection is redesignated as 103 paragraph (ff) of that subsection, to read: 104 627.351 Insurance risk apportionment plans.— 105 (6) CITIZENS PROPERTY INSURANCE CORPORATION.— 106 (b)1. All insurers authorized to write one or more subject 107 lines of business in this state are subject to assessment by the 108 corporation and, for the purposes of this subsection, are 109 referred to collectively as “assessable insurers.” Insurers 110 writing one or more subject lines of business in this state 111 pursuant to part VIII of chapter 626 are not assessable 112 insurers, but insureds who procure one or more subject lines of 113 business in this state pursuant to part VIII of chapter 626 are 114 subject to assessment by the corporation and are referred to 115 collectively as “assessable insureds.” An authorized insurer’s 116 assessment liability shall begin on the first day of the 117 calendar year following the year in which the insurer was issued 118 a certificate of authority to transact insurance for subject 119 lines of business in this state and shall terminate 1 year after 120 the end of the first calendar year during which the insurer no 121 longer holds a certificate of authority to transact insurance 122 for subject lines of business in this state. 123 2.a. All revenues, assets, liabilities, losses, and 124 expenses of the corporation shall be divided into three separate 125 accounts as follows: 126 (I) A personal lines account for personal residential 127 policies issued by the corporation or issued by the Residential 128 Property and Casualty Joint Underwriting Association and renewed 129 by the corporation that provide comprehensive, multiperil 130 coverage on risks that are not located in areas eligible for 131 coverage in the Florida Windstorm Underwriting Association as 132 those areas were defined on January 1, 2002, and for such 133 policies that do not provide coverage for the peril of wind on 134 risks that are located in such areas; 135 (II) A commercial lines account for commercial residential 136 and commercial nonresidential policies issued by the corporation 137 or issued by the Residential Property and Casualty Joint 138 Underwriting Association and renewed by the corporation that 139 provide coverage for basic property perils on risks that are not 140 located in areas eligible for coverage in the Florida Windstorm 141 Underwriting Association as those areas were defined on January 142 1, 2002, and for such policies that do not provide coverage for 143 the peril of wind on risks that are located in such areas; and 144 (III) A high-risk account for personal residential policies 145 and commercial residential and commercial nonresidential 146 property policies issued by the corporation or transferred to 147 the corporation that provide coverage for the peril of wind on 148 risks that are located in areas eligible for coverage in the 149 Florida Windstorm Underwriting Association as those areas were 150 defined on January 1, 2002. The corporation may offer policies 151 that provide multiperil coverage and the corporation shall 152 continue to offer policies that provide coverage only for the 153 peril of wind for risks located in areas eligible for coverage 154 in the high-risk account. In issuing multiperil coverage, the 155 corporation may use its approved policy forms and rates for the 156 personal lines account. An applicant or insured who is eligible 157 to purchase a multiperil policy from the corporation may 158 purchase a multiperil policy from an authorized insurer without 159 prejudice to the applicant’s or insured’s eligibility to 160 prospectively purchase a policy that provides coverage only for 161 the peril of wind from the corporation. An applicant or insured 162 who is eligible for a corporation policy that provides coverage 163 only for the peril of wind may elect to purchase or retain such 164 policy and also purchase or retain coverage excluding wind from 165 an authorized insurer without prejudice to the applicant’s or 166 insured’s eligibility to prospectively purchase a policy that 167 provides multiperil coverage from the corporation. It is the 168 goal of the Legislature that there would be an overall average 169 savings of 10 percent or more for a policyholder who currently 170 has a wind-only policy with the corporation, and an ex-wind 171 policy with a voluntary insurer or the corporation, and who then 172 obtains a multiperil policy from the corporation. It is the 173 intent of the Legislature that the offer of multiperil coverage 174 in the high-risk account be made and implemented in a manner 175 that does not adversely affect the tax-exempt status of the 176 corporation or creditworthiness of or security for currently 177 outstanding financing obligations or credit facilities of the 178 high-risk account, the personal lines account, or the commercial 179 lines account. The high-risk account must also include quota 180 share primary insurance under subparagraph (c)2. The area 181 eligible for coverage under the high-risk account also includes 182 the area within Port Canaveral, which is bordered on the south 183 by the City of Cape Canaveral, bordered on the west by the 184 Banana River, and bordered on the north by Federal Government 185 property. 186 b. The three separate accounts must be maintained as long 187 as financing obligations entered into by the Florida Windstorm 188 Underwriting Association or Residential Property and Casualty 189 Joint Underwriting Association are outstanding, in accordance 190 with the terms of the corresponding financing documents. When 191 the financing obligations are no longer outstanding, in 192 accordance with the terms of the corresponding financing 193 documents, the corporation may use a single account for all 194 revenues, assets, liabilities, losses, and expenses of the 195 corporation. Consistent with the requirement of this 196 subparagraph and prudent investment policies that minimize the 197 cost of carrying debt, the board shall exercise its best efforts 198 to retire existing debt or to obtain approval of necessary 199 parties to amend the terms of existing debt, so as to structure 200 the most efficient plan to consolidate the three separate 201 accounts into a single account. By February 1, 2007, the board 202 shall submit a report to the Financial Services Commission, the 203 President of the Senate, and the Speaker of the House of 204 Representatives which includes an analysis of consolidating the 205 accounts, the actions the board has taken to minimize the cost 206 of carrying debt, and its recommendations for executing the most 207 efficient plan. 208 c. Creditors of the Residential Property and Casualty Joint 209 Underwriting Association and of the accounts specified in sub 210 sub-subparagraphs a.(I) and (II) may have a claim against, and 211 recourse to, the accounts referred to in sub-sub-subparagraphs 212 a.(I) and (II) and shall have no claim against, or recourse to, 213 the account referred to in sub-sub-subparagraph a.(III). 214 Creditors of the Florida Windstorm Underwriting Association 215 shall have a claim against, and recourse to, the account 216 referred to in sub-sub-subparagraph a.(III) and shall have no 217 claim against, or recourse to, the accounts referred to in sub 218 sub-subparagraphs a.(I) and (II). 219 d. Revenues, assets, liabilities, losses, and expenses not 220 attributable to particular accounts shall be prorated among the 221 accounts. 222 e. The Legislature finds that the revenues of the 223 corporation are revenues that are necessary to meet the 224 requirements set forth in documents authorizing the issuance of 225 bonds under this subsection. 226 f. No part of the income of the corporation may inure to 227 the benefit of any private person. 228 3. With respect to a deficit in an account: 229 a. After accounting for the Citizens policyholder surcharge 230 imposed under sub-subparagraph i., when the remaining projected 231 deficit incurred in a particular calendar year is not greater 232 than 6 percent of the aggregate statewide direct written premium 233 for the subject lines of business for the prior calendar year, 234 the entire deficit shall be recovered through regular 235 assessments of assessable insurers under paragraph (p) and 236 assessable insureds. 237 b. After accounting for the Citizens policyholder surcharge 238 imposed under sub-subparagraph i., when the remaining projected 239 deficit incurred in a particular calendar year exceeds 6 percent 240 of the aggregate statewide direct written premium for the 241 subject lines of business for the prior calendar year, the 242 corporation shall levy regular assessments on assessable 243 insurers under paragraph (p) and on assessable insureds in an 244 amount equal to the greater of 6 percent of the deficit or 6 245 percent of the aggregate statewide direct written premium for 246 the subject lines of business for the prior calendar year. Any 247 remaining deficit shall be recovered through emergency 248 assessments under sub-subparagraph d. 249 c. Each assessable insurer’s share of the amount being 250 assessed under sub-subparagraph a. or sub-subparagraph b. shall 251 be in the proportion that the assessable insurer’s direct 252 written premium for the subject lines of business for the year 253 preceding the assessment bears to the aggregate statewide direct 254 written premium for the subject lines of business for that year. 255 The assessment percentage applicable to each assessable insured 256 is the ratio of the amount being assessed under sub-subparagraph 257 a. or sub-subparagraph b. to the aggregate statewide direct 258 written premium for the subject lines of business for the prior 259 year. Assessments levied by the corporation on assessable 260 insurers under sub-subparagraphs a. and b. shall be paid as 261 required by the corporation’s plan of operation and paragraph 262 (p). Assessments levied by the corporation on assessable 263 insureds under sub-subparagraphs a. and b. shall be collected by 264 the surplus lines agent at the time the surplus lines agent 265 collects the surplus lines tax required by s. 626.932 and shall 266 be paid to the Florida Surplus Lines Service Office at the time 267 the surplus lines agent pays the surplus lines tax to the 268 Florida Surplus Lines Service Office. Upon receipt of regular 269 assessments from surplus lines agents, the Florida Surplus Lines 270 Service Office shall transfer the assessments directly to the 271 corporation as determined by the corporation. 272 d. Upon a determination by the board of governors that a 273 deficit in an account exceeds the amount that will be recovered 274 through regular assessments under sub-subparagraph a. or sub 275 subparagraph b., plus the amount that is expected to be 276 recovered through surcharges under sub-subparagraph i., as to 277 the remaining projected deficit the board shall levy, after 278 verification by the office, emergency assessments, for as many 279 years as necessary to cover the deficits, to be collected by 280 assessable insurers and the corporation and collected from 281 assessable insureds upon issuance or renewal of policies for 282 subject lines of business, excluding National Flood Insurance 283 policies. The amount of the emergency assessment collected in a 284 particular year shall be a uniform percentage of that year’s 285 direct written premium for subject lines of business and all 286 accounts of the corporation, excluding National Flood Insurance 287 Program policy premiums, as annually determined by the board and 288 verified by the office. The office shall verify the arithmetic 289 calculations involved in the board’s determination within 30 290 days after receipt of the information on which the determination 291 was based. Notwithstanding any other provision of law, the 292 corporation and each assessable insurer that writes subject 293 lines of business shall collect emergency assessments from its 294 policyholders without such obligation being affected by any 295 credit, limitation, exemption, or deferment. Emergency 296 assessments levied by the corporation on assessable insureds 297 shall be collected by the surplus lines agent at the time the 298 surplus lines agent collects the surplus lines tax required by 299 s. 626.932 and shall be paid to the Florida Surplus Lines 300 Service Office at the time the surplus lines agent pays the 301 surplus lines tax to the Florida Surplus Lines Service Office. 302 The emergency assessments so collected shall be transferred 303 directly to the corporation on a periodic basis as determined by 304 the corporation and shall be held by the corporation solely in 305 the applicable account. The aggregate amount of emergency 306 assessments levied for an account under this sub-subparagraph in 307 any calendar year may, at the discretion of the board of 308 governors, be less than but may not exceed the greater of 10 309 percent of the amount needed to cover the deficit, plus 310 interest, fees, commissions, required reserves, and other costs 311 associated with financing of the original deficit, or 10 percent 312 of the aggregate statewide direct written premium for subject 313 lines of business and for all accounts of the corporation for 314 the prior year, plus interest, fees, commissions, required 315 reserves, and other costs associated with financing the deficit. 316 e. The corporation may pledge the proceeds of assessments, 317 projected recoveries from the Florida Hurricane Catastrophe 318 Fund, other insurance and reinsurance recoverables, policyholder 319 surcharges and other surcharges, and other funds available to 320 the corporation as the source of revenue for and to secure bonds 321 issued under paragraph (p), bonds or other indebtedness issued 322 under subparagraph (c)3., or lines of credit or other financing 323 mechanisms issued or created under this subsection, or to retire 324 any other debt incurred as a result of deficits or events giving 325 rise to deficits, or in any other way that the board determines 326 will efficiently recover such deficits. The purpose of the lines 327 of credit or other financing mechanisms is to provide additional 328 resources to assist the corporation in covering claims and 329 expenses attributable to a catastrophe. As used in this 330 subsection, the term “assessments” includes regular assessments 331 under sub-subparagraph a., sub-subparagraph b., or subparagraph 332 (p)1. and emergency assessments under sub-subparagraph d. 333 Emergency assessments collected under sub-subparagraph d. are 334 not part of an insurer’s rates, are not premium, and are not 335 subject to premium tax, fees, or commissions; however, failure 336 to pay the emergency assessment shall be treated as failure to 337 pay premium. The emergency assessments under sub-subparagraph d. 338 shall continue as long as any bonds issued or other indebtedness 339 incurred with respect to a deficit for which the assessment was 340 imposed remain outstanding, unless adequate provision has been 341 made for the payment of such bonds or other indebtedness 342 pursuant to the documents governing such bonds or other 343 indebtedness. 344 f. As used in this subsection for purposes of any deficit 345 incurred on or after January 25, 2007, the term “subject lines 346 of business” means insurance written by assessable insurers or 347 procured by assessable insureds for all property and casualty 348 lines of business in this state, but not including workers’ 349 compensation or medical malpractice. As used in the sub 350 subparagraph, the term “property and casualty lines of business” 351 includes all lines of business identified on Form 2, Exhibit of 352 Premiums and Losses, in the annual statement required of 353 authorized insurers by s. 624.424 and any rule adopted under 354 this section, except for those lines identified as accident and 355 health insurance and except for policies written under the 356 National Flood Insurance Program or the Federal Crop Insurance 357 Program. For purposes of this sub-subparagraph, the term 358 “workers’ compensation” includes both workers’ compensation 359 insurance and excess workers’ compensation insurance. 360 g. The Florida Surplus Lines Service Office shall determine 361 annually the aggregate statewide written premium in subject 362 lines of business procured by assessable insureds and shall 363 report that information to the corporation in a form and at a 364 time the corporation specifies to ensure that the corporation 365 can meet the requirements of this subsection and the 366 corporation’s financing obligations. 367 h. The Florida Surplus Lines Service Office shall verify 368 the proper application by surplus lines agents of assessment 369 percentages for regular assessments and emergency assessments 370 levied under this subparagraph on assessable insureds and shall 371 assist the corporation in ensuring the accurate, timely 372 collection and payment of assessments by surplus lines agents as 373 required by the corporation. 374 i.(I) If a deficit is incurred in any account in 2008 or 375 thereafter, the board of governors shall levy a Citizens 376 policyholder surcharge against all policyholders of the 377 corporation. 378 (II) The Citizens policyholder surchargefor a 12-month379period, whichshall be leviedcollected at the time of issuance380or renewal of a policy,as a uniform percentage of the premium 381 for the policy of up to 15 percent of such premium, which funds 382 shall be used to offset the deficit. 383 (III) The Citizens policyholder surcharge is payable upon 384 cancellation or termination of the policy, upon renewal of the 385 policy, or upon issuance of a new policy by Citizens within the 386 first 12 months after the date of the levy or the period of time 387 necessary to fully collect the Citizens policyholder surcharge 388 amount. 389 (IV) The corporation may not levy any regular assessments 390 under paragraph (q) pursuant to sub-subparagraph a. or sub 391 subparagraph b. with respect to a particular year’s deficit 392 until the corporation has first levied a Citizens policyholder 393 surcharge under this sub-subparagraph in the full amount 394 authorized by this sub-subparagraph. 395 (V) Citizens policyholder surcharges under this sub 396 subparagraph are not considered premium and are not subject to 397 commissions, fees, or premium taxes. However, failure to pay 398 such surcharges shall be treated as failure to pay premium. 399 j. If the amount of any assessments or surcharges collected 400 from corporation policyholders, assessable insurers or their 401 policyholders, or assessable insureds exceeds the amount of the 402 deficits, such excess amounts shall be remitted to and retained 403 by the corporation in a reserve to be used by the corporation, 404 as determined by the board of governors and approved by the 405 office, to pay claims or reduce any past, present, or future 406 plan-year deficits or to reduce outstanding debt. 407 (c) The plan of operation of the corporation: 408 1. Must provide for adoption of residential property and 409 casualty insurance policy forms and commercial residential and 410 nonresidential property insurance forms, which forms must be 411 approved by the office prior to use. The corporation shall adopt 412 the following policy forms: 413 a. Standard personal lines policy forms that are 414 comprehensive multiperil policies providing full coverage of a 415 residential property equivalent to the coverage provided in the 416 private insurance market under an HO-3, HO-4, or HO-6 policy. 417 b. Basic personal lines policy forms that are policies 418 similar to an HO-8 policy or a dwelling fire policy that provide 419 coverage meeting the requirements of the secondary mortgage 420 market, but which coverage is more limited than the coverage 421 under a standard policy. 422 c. Commercial lines residential and nonresidential policy 423 forms that are generally similar to the basic perils of full 424 coverage obtainable for commercial residential structures and 425 commercial nonresidential structures in the admitted voluntary 426 market. 427 d. Personal lines and commercial lines residential property 428 insurance forms that cover the peril of wind only. The forms are 429 applicable only to residential properties located in areas 430 eligible for coverage under the high-risk account referred to in 431 sub-subparagraph (b)2.a. 432 e. Commercial lines nonresidential property insurance forms 433 that cover the peril of wind only. The forms are applicable only 434 to nonresidential properties located in areas eligible for 435 coverage under the high-risk account referred to in sub 436 subparagraph (b)2.a. 437 f. The corporation may adopt variations of the policy forms 438 listed in sub-subparagraphs a.-e. that contain more restrictive 439 coverage. 440 2.a. Must provide that the corporation adopt a program in 441 which the corporation and authorized insurers enter into quota 442 share primary insurance agreements for hurricane coverage, as 443 defined in s. 627.4025(2)(a), for eligible risks, and adopt 444 property insurance forms for eligible risks which cover the 445 peril of wind only. As used in this subsection, the term: 446 (I) “Quota share primary insurance” means an arrangement in 447 which the primary hurricane coverage of an eligible risk is 448 provided in specified percentages by the corporation and an 449 authorized insurer. The corporation and authorized insurer are 450 each solely responsible for a specified percentage of hurricane 451 coverage of an eligible risk as set forth in a quota share 452 primary insurance agreement between the corporation and an 453 authorized insurer and the insurance contract. The 454 responsibility of the corporation or authorized insurer to pay 455 its specified percentage of hurricane losses of an eligible 456 risk, as set forth in the quota share primary insurance 457 agreement, may not be altered by the inability of the other 458 party to the agreement to pay its specified percentage of 459 hurricane losses. Eligible risks that are provided hurricane 460 coverage through a quota share primary insurance arrangement 461 must be provided policy forms that set forth the obligations of 462 the corporation and authorized insurer under the arrangement, 463 clearly specify the percentages of quota share primary insurance 464 provided by the corporation and authorized insurer, and 465 conspicuously and clearly state that neither the authorized 466 insurer nor the corporation may be held responsible beyond its 467 specified percentage of coverage of hurricane losses. 468 (II) “Eligible risks” means personal lines residential and 469 commercial lines residential risks that meet the underwriting 470 criteria of the corporation and are located in areas that were 471 eligible for coverage by the Florida Windstorm Underwriting 472 Association on January 1, 2002. 473 b. The corporation may enter into quota share primary 474 insurance agreements with authorized insurers at corporation 475 coverage levels of 90 percent and 50 percent. 476 c. If the corporation determines that additional coverage 477 levels are necessary to maximize participation in quota share 478 primary insurance agreements by authorized insurers, the 479 corporation may establish additional coverage levels. However, 480 the corporation’s quota share primary insurance coverage level 481 may not exceed 90 percent. 482 d. Any quota share primary insurance agreement entered into 483 between an authorized insurer and the corporation must provide 484 for a uniform specified percentage of coverage of hurricane 485 losses, by county or territory as set forth by the corporation 486 board, for all eligible risks of the authorized insurer covered 487 under the quota share primary insurance agreement. 488 e. Any quota share primary insurance agreement entered into 489 between an authorized insurer and the corporation is subject to 490 review and approval by the office. However, such agreement shall 491 be authorized only as to insurance contracts entered into 492 between an authorized insurer and an insured who is already 493 insured by the corporation for wind coverage. 494 f. For all eligible risks covered under quota share primary 495 insurance agreements, the exposure and coverage levels for both 496 the corporation and authorized insurers shall be reported by the 497 corporation to the Florida Hurricane Catastrophe Fund. For all 498 policies of eligible risks covered under quota share primary 499 insurance agreements, the corporation and the authorized insurer 500 shall maintain complete and accurate records for the purpose of 501 exposure and loss reimbursement audits as required by Florida 502 Hurricane Catastrophe Fund rules. The corporation and the 503 authorized insurer shall each maintain duplicate copies of 504 policy declaration pages and supporting claims documents. 505 g. The corporation board shall establish in its plan of 506 operation standards for quota share agreements which ensure that 507 there is no discriminatory application among insurers as to the 508 terms of quota share agreements, pricing of quota share 509 agreements, incentive provisions if any, and consideration paid 510 for servicing policies or adjusting claims. 511 h. The quota share primary insurance agreement between the 512 corporation and an authorized insurer must set forth the 513 specific terms under which coverage is provided, including, but 514 not limited to, the sale and servicing of policies issued under 515 the agreement by the insurance agent of the authorized insurer 516 producing the business, the reporting of information concerning 517 eligible risks, the payment of premium to the corporation, and 518 arrangements for the adjustment and payment of hurricane claims 519 incurred on eligible risks by the claims adjuster and personnel 520 of the authorized insurer. Entering into a quota sharing 521 insurance agreement between the corporation and an authorized 522 insurer shall be voluntary and at the discretion of the 523 authorized insurer. 524 3. May provide that the corporation may employ or otherwise 525 contract with individuals or other entities to provide 526 administrative or professional services that may be appropriate 527 to effectuate the plan. The corporation shall have the power to 528 borrow funds, by issuing bonds or by incurring other 529 indebtedness, and shall have other powers reasonably necessary 530 to effectuate the requirements of this subsection, including, 531 without limitation, the power to issue bonds and incur other 532 indebtedness in order to refinance outstanding bonds or other 533 indebtedness. The corporation may, but is not required to, seek 534 judicial validation of its bonds or other indebtedness under 535 chapter 75. The corporation may issue bonds or incur other 536 indebtedness, or have bonds issued on its behalf by a unit of 537 local government pursuant to subparagraph (p)2., in the absence 538 of a hurricane or other weather-related event, upon a 539 determination by the corporation, subject to approval by the 540 office, that such action would enable it to efficiently meet the 541 financial obligations of the corporation and that such 542 financings are reasonably necessary to effectuate the 543 requirements of this subsection. The corporation is authorized 544 to take all actions needed to facilitate tax-free status for any 545 such bonds or indebtedness, including formation of trusts or 546 other affiliated entities. The corporation shall have the 547 authority to pledge assessments, projected recoveries from the 548 Florida Hurricane Catastrophe Fund, other reinsurance 549 recoverables, market equalization and other surcharges, and 550 other funds available to the corporation as security for bonds 551 or other indebtedness. In recognition of s. 10, Art. I of the 552 State Constitution, prohibiting the impairment of obligations of 553 contracts, it is the intent of the Legislature that no action be 554 taken whose purpose is to impair any bond indenture or financing 555 agreement or any revenue source committed by contract to such 556 bond or other indebtedness. 557 4.a. Must require that the corporation operate subject to 558 the supervision and approval of a board of governors consisting 559 of eight individuals who are residents of this state, from 560 different geographical areas of this state. The Governor, the 561 Chief Financial Officer, the President of the Senate, and the 562 Speaker of the House of Representatives shall each appoint two 563 members of the board. At least one of the two members appointed 564 by each appointing officer must have demonstrated expertise in 565 insurance. The Chief Financial Officer shall designate one of 566 the appointees as chair. All board members serve at the pleasure 567 of the appointing officer. All members of the board of governors 568 are subject to removal at will by the officers who appointed 569 them. All board members, including the chair, must be appointed 570 to serve for 3-year terms beginning annually on a date 571 designated by the plan. However, for the first term beginning on 572 or after July 1, 2009, each appointing officer shall appoint one 573 member of the board for a 2-year term and one member for a 3 574 year term. Any board vacancy shall be filled for the unexpired 575 term by the appointing officer. The Chief Financial Officer 576 shall appoint a technical advisory group to provide information 577 and advice to the board of governors in connection with the 578 board’s duties under this subsection. The executive director and 579 senior managers of the corporation shall be engaged by the board 580 and serve at the pleasure of the board. Any executive director 581 appointed on or after July 1, 2006, is subject to confirmation 582 by the Senate. The executive director is responsible for 583 employing other staff as the corporation may require, subject to 584 review and concurrence by the board. 585 b. The board shall create a Market Accountability Advisory 586 Committee to assist the corporation in developing awareness of 587 its rates and its customer and agent service levels in 588 relationship to the voluntary market insurers writing similar 589 coverage. The members of the advisory committee shall consist of 590 the following 11 persons, one of whom must be elected chair by 591 the members of the committee: four representatives, one 592 appointed by the Florida Association of Insurance Agents, one by 593 the Florida Association of Insurance and Financial Advisors, one 594 by the Professional Insurance Agents of Florida, and one by the 595 Latin American Association of Insurance Agencies; three 596 representatives appointed by the insurers with the three highest 597 voluntary market share of residential property insurance 598 business in the state; one representative from the Office of 599 Insurance Regulation; one consumer appointed by the board who is 600 insured by the corporation at the time of appointment to the 601 committee; one representative appointed by the Florida 602 Association of Realtors; and one representative appointed by the 603 Florida Bankers Association. All members must serve for 3-year 604 terms and may serve for consecutive terms. The committee shall 605 report to the corporation at each board meeting on insurance 606 market issues which may include rates and rate competition with 607 the voluntary market; service, including policy issuance, claims 608 processing, and general responsiveness to policyholders, 609 applicants, and agents; and matters relating to depopulation. 610 5. Must provide a procedure for determining the eligibility 611 of a risk for coverage, as follows: 612 a. Subject to the provisions of s. 627.3517, with respect 613 to personal lines residential risks, if the risk is offered 614 coverage from an authorized insurer at the insurer’s approved 615 rate under either a standard policy including wind coverage or, 616 if consistent with the insurer’s underwriting rules as filed 617 with the office, a basic policy including wind coverage, for a 618 new application to the corporation for coverage, the risk is not 619 eligible for any policy issued by the corporation unless the 620 premium for coverage from the authorized insurer is more than 15 621 percent greater than the premium for comparable coverage from 622 the corporation. If the risk is not able to obtain any such 623 offer, the risk is eligible for either a standard policy 624 including wind coverage or a basic policy including wind 625 coverage issued by the corporation; however, if the risk could 626 not be insured under a standard policy including wind coverage 627 regardless of market conditions, the risk shall be eligible for 628 a basic policy including wind coverage unless rejected under 629 subparagraph 8. However, with regard to a policyholder of the 630 corporation or a policyholder removed from the corporation 631 through an assumption agreement until the end of the assumption 632 period, the policyholder remains eligible for coverage from the 633 corporation regardless of any offer of coverage from an 634 authorized insurer or surplus lines insurer. The corporation 635 shall determine the type of policy to be provided on the basis 636 of objective standards specified in the underwriting manual and 637 based on generally accepted underwriting practices. 638 (I) If the risk accepts an offer of coverage through the 639 market assistance plan or an offer of coverage through a 640 mechanism established by the corporation before a policy is 641 issued to the risk by the corporation or during the first 30 642 days of coverage by the corporation, and the producing agent who 643 submitted the application to the plan or to the corporation is 644 not currently appointed by the insurer, the insurer shall: 645 (A) Pay to the producing agent of record of the policy, for 646 the first year, an amount that is the greater of the insurer’s 647 usual and customary commission for the type of policy written or 648 a fee equal to the usual and customary commission of the 649 corporation; or 650 (B) Offer to allow the producing agent of record of the 651 policy to continue servicing the policy for a period of not less 652 than 1 year and offer to pay the agent the greater of the 653 insurer’s or the corporation’s usual and customary commission 654 for the type of policy written. 655 656 If the producing agent is unwilling or unable to accept 657 appointment, the new insurer shall pay the agent in accordance 658 with sub-sub-sub-subparagraph (A). 659 (II) When the corporation enters into a contractual 660 agreement for a take-out plan, the producing agent of record of 661 the corporation policy is entitled to retain any unearned 662 commission on the policy, and the insurer shall: 663 (A) Pay to the producing agent of record of the corporation 664 policy, for the first year, an amount that is the greater of the 665 insurer’s usual and customary commission for the type of policy 666 written or a fee equal to the usual and customary commission of 667 the corporation; or 668 (B) Offer to allow the producing agent of record of the 669 corporation policy to continue servicing the policy for a period 670 of not less than 1 year and offer to pay the agent the greater 671 of the insurer’s or the corporation’s usual and customary 672 commission for the type of policy written. 673 674 If the producing agent is unwilling or unable to accept 675 appointment, the new insurer shall pay the agent in accordance 676 with sub-sub-sub-subparagraph (A). 677 b. With respect to commercial lines residential risks, for 678 a new application to the corporation for coverage, if the risk 679 is offered coverage under a policy including wind coverage from 680 an authorized insurer at its approved rate, the risk is not 681 eligible for any policy issued by the corporation unless the 682 premium for coverage from the authorized insurer is more than 15 683 percent greater than the premium for comparable coverage from 684 the corporation. If the risk is not able to obtain any such 685 offer, the risk is eligible for a policy including wind coverage 686 issued by the corporation. However, with regard to a 687 policyholder of the corporation or a policyholder removed from 688 the corporation through an assumption agreement until the end of 689 the assumption period, the policyholder remains eligible for 690 coverage from the corporation regardless of any offer of 691 coverage from an authorized insurer or surplus lines insurer. 692 (I) If the risk accepts an offer of coverage through the 693 market assistance plan or an offer of coverage through a 694 mechanism established by the corporation before a policy is 695 issued to the risk by the corporation or during the first 30 696 days of coverage by the corporation, and the producing agent who 697 submitted the application to the plan or the corporation is not 698 currently appointed by the insurer, the insurer shall: 699 (A) Pay to the producing agent of record of the policy, for 700 the first year, an amount that is the greater of the insurer’s 701 usual and customary commission for the type of policy written or 702 a fee equal to the usual and customary commission of the 703 corporation; or 704 (B) Offer to allow the producing agent of record of the 705 policy to continue servicing the policy for a period of not less 706 than 1 year and offer to pay the agent the greater of the 707 insurer’s or the corporation’s usual and customary commission 708 for the type of policy written. 709 710 If the producing agent is unwilling or unable to accept 711 appointment, the new insurer shall pay the agent in accordance 712 with sub-sub-sub-subparagraph (A). 713 (II) When the corporation enters into a contractual 714 agreement for a take-out plan, the producing agent of record of 715 the corporation policy is entitled to retain any unearned 716 commission on the policy, and the insurer shall: 717 (A) Pay to the producing agent of record of the corporation 718 policy, for the first year, an amount that is the greater of the 719 insurer’s usual and customary commission for the type of policy 720 written or a fee equal to the usual and customary commission of 721 the corporation; or 722 (B) Offer to allow the producing agent of record of the 723 corporation policy to continue servicing the policy for a period 724 of not less than 1 year and offer to pay the agent the greater 725 of the insurer’s or the corporation’s usual and customary 726 commission for the type of policy written. 727 728 If the producing agent is unwilling or unable to accept 729 appointment, the new insurer shall pay the agent in accordance 730 with sub-sub-sub-subparagraph (A). 731 c. For purposes of determining comparable coverage under 732 sub-subparagraphs a. and b., the comparison shall be based on 733 those forms and coverages that are reasonably comparable. The 734 corporation may rely on a determination of comparable coverage 735 and premium made by the producing agent who submits the 736 application to the corporation, made in the agent’s capacity as 737 the corporation’s agent. A comparison may be made solely of the 738 premium with respect to the main building or structure only on 739 the following basis: the same coverage A or other building 740 limits; the same percentage hurricane deductible that applies on 741 an annual basis or that applies to each hurricane for commercial 742 residential property; the same percentage of ordinance and law 743 coverage, if the same limit is offered by both the corporation 744 and the authorized insurer; the same mitigation credits, to the 745 extent the same types of credits are offered both by the 746 corporation and the authorized insurer; the same method for loss 747 payment, such as replacement cost or actual cash value, if the 748 same method is offered both by the corporation and the 749 authorized insurer in accordance with underwriting rules; and 750 any other form or coverage that is reasonably comparable as 751 determined by the board. If an application is submitted to the 752 corporation for wind-only coverage in the high-risk account, the 753 premium for the corporation’s wind-only policy plus the premium 754 for the ex-wind policy that is offered by an authorized insurer 755 to the applicant shall be compared to the premium for multiperil 756 coverage offered by an authorized insurer, subject to the 757 standards for comparison specified in this subparagraph. If the 758 corporation or the applicant requests from the authorized 759 insurer a breakdown of the premium of the offer by types of 760 coverage so that a comparison may be made by the corporation or 761 its agent and the authorized insurer refuses or is unable to 762 provide such information, the corporation may treat the offer as 763 not being an offer of coverage from an authorized insurer at the 764 insurer’s approved rate. 765 6. Must include rules for classifications of risks and 766 rates therefor. 767 7. Must provide that if premium and investment income for 768 an account attributable to a particular calendar year are in 769 excess of projected losses and expenses for the account 770 attributable to that year, such excess shall be held in surplus 771 in the account. Such surplus shall be available to defray 772 deficits in that account as to future years and shall be used 773 for that purpose prior to assessing assessable insurers and 774 assessable insureds as to any calendar year. 775 8. Must provide objective criteria and procedures to be 776 uniformly applied for all applicants in determining whether an 777 individual risk is so hazardous as to be uninsurable. In making 778 this determination and in establishing the criteria and 779 procedures, the following shall be considered: 780 a. Whether the likelihood of a loss for the individual risk 781 is substantially higher than for other risks of the same class; 782 and 783 b. Whether the uncertainty associated with the individual 784 risk is such that an appropriate premium cannot be determined. 785 786 The acceptance or rejection of a risk by the corporation shall 787 be construed as the private placement of insurance, and the 788 provisions of chapter 120 shall not apply. 789 9. Must provide that the corporation shall make its best 790 efforts to procure catastrophe reinsurance at reasonable rates, 791 to cover its projected 100-year probable maximum loss as 792 determined by the board of governors. 793 10. The policies issued by the corporation must provide 794 that, if the corporation or the market assistance plan obtains 795 an offer from an authorized insurer to cover the risk at its 796 approved rates, the risk is no longer eligible for renewal 797 through the corporation, except as otherwise provided in this 798 subsection. 799 11. Corporation policies and applications must include a 800 notice that the corporation policy could, under this section, be 801 replaced with a policy issued by an authorized insurer that does 802 not provide coverage identical to the coverage provided by the 803 corporation. The notice shall also specify that acceptance of 804 corporation coverage creates a conclusive presumption that the 805 applicant or policyholder is aware of this potential. 806 12. May establish, subject to approval by the office, 807 different eligibility requirements and operational procedures 808 for any line or type of coverage for any specified county or 809 area if the board determines that such changes to the 810 eligibility requirements and operational procedures are 811 justified due to the voluntary market being sufficiently stable 812 and competitive in such area or for such line or type of 813 coverage and that consumers who, in good faith, are unable to 814 obtain insurance through the voluntary market through ordinary 815 methods would continue to have access to coverage from the 816 corporation. When coverage is sought in connection with a real 817 property transfer, such requirements and procedures shall not 818 provide for an effective date of coverage later than the date of 819 the closing of the transfer as established by the transferor, 820 the transferee, and, if applicable, the lender. 821 13. Must provide that, with respect to the high-risk 822 account, any assessable insurer with a surplus as to 823 policyholders of $25 million or less writing 25 percent or more 824 of its total countrywide property insurance premiums in this 825 state may petition the office, within the first 90 days of each 826 calendar year, to qualify as a limited apportionment company. A 827 regular assessment levied by the corporation on a limited 828 apportionment company for a deficit incurred by the corporation 829 for the high-risk account in 2006 or thereafter may be paid to 830 the corporation on a monthly basis as the assessments are 831 collected by the limited apportionment company from its insureds 832 pursuant to s. 627.3512, but the regular assessment must be paid 833 in full within 12 months after being levied by the corporation. 834 A limited apportionment company shall collect from its 835 policyholders any emergency assessment imposed under sub 836 subparagraph (b)3.d. The plan shall provide that, if the office 837 determines that any regular assessment will result in an 838 impairment of the surplus of a limited apportionment company, 839 the office may direct that all or part of such assessment be 840 deferred as provided in subparagraph (p)4. However, there shall 841 be no limitation or deferment of an emergency assessment to be 842 collected from policyholders under sub-subparagraph (b)3.d. 843 14. Must provide that the corporation appoint as its 844 licensed agents only those agents who also hold an appointment 845 as defined in s. 626.015(3) with an insurer who at the time of 846 the agent’s initial appointment by the corporation is authorized 847 to write and is actually writing personal lines residential 848 property coverage, commercial residential property coverage, or 849 commercial nonresidential property coverage within the state. 850 15. Must provide, by July 1, 2007, a premium payment plan 851 option to its policyholders which allows at a minimum for 852 quarterly and semiannual payment of premiums. A monthly payment 853 plan may, but is not required to, be offered. 854 16. Must limit coverage on mobile homes or manufactured 855 homes built prior to 1994 to actual cash value of the dwelling 856 rather than replacement costs of the dwelling. 857 17. May provide such limits of coverage as the board 858 determines, consistent with the requirements of this subsection. 859 18. May require commercial property to meet specified 860 hurricane mitigation construction features as a condition of 861 eligibility for coverage. 862 19.a. Shall require the agent to obtain from any applicant 863 for coverage the following acknowledgement, signed by the 864 applicant, and shall require the agent of record to obtain the 865 following acknowledgment from each corporation policyholder, 866 signed by the policyholder, prior to the policy’s first renewal 867 after the effective date of this act: 868 869 ACKNOWLEDGEMENT OF POTENTIAL SURCHARGE AND ASSESSMENT 870 LIABILITY: 871 1. I UNDERSTAND, AS A CITIZENS PROPERTY INSURANCE 872 CORPORATION POLICYHOLDER, THAT IF THE CORPORATION 873 SUSTAINS A DEFICIT AS A RESULT OF HURRICANE LOSSES OR 874 FOR ANY OTHER REASON, MY POLICY COULD BE SUBJECT TO 875 CITIZENS POLICYHOLDER SURCHARGES, WHICH WOULD BE DUE 876 AND PAYABLE UPON RENEWAL, CANCELLATION, OR TERMINATION 877 OF THE POLICY, AND THAT THE SURCHARGES COULD BE AS 878 HIGH AS 15 PERCENT OF MY PREMIUM FOR DEFICITS IN EACH 879 OF THREE CITIZENS ACCOUNTS, OR A DIFFERENT AMOUNT AS 880 ESTABLISHED BY THE FLORIDA LEGISLATURE. 881 2. I ALSO UNDERSTAND THAT I MAY BE SUBJECT TO 882 EMERGENCY ASSESSMENTS TO THE SAME EXTENT AS 883 POLICYHOLDERS OF OTHER INSURANCE COMPANIES. 884 885 b. The corporation shall permanently maintain a signed copy 886 of the signed acknowledgement required by this subparagraph, and 887 the agent may also retain a copy. 888 c. The signed acknowledgement form creates a conclusive 889 presumption that the policyholder understood and accepted his or 890 her potential surcharge and assessment liability as a Citizens 891 policyholder. 892 Section 3. Section 627.7031, Florida Statutes, is created 893 to read: 894 627.7031 Residential property insurance option.— 895 (1) An insurer holding a certificate of authority to write 896 property insurance in this state may offer or renew policies at 897 rates established in accordance with s. 627.062(2)(l), subject 898 to all of the requirements and prohibitions of this section. 899 (2) An insurer offering or renewing policies at rates 900 established in accordance with s. 627.062(2)(l) may not purchase 901 coverage from the Florida Hurricane Catastrophe Fund under the 902 temporary increase in coverage limit option under s. 903 215.555(17). 904 (3)(a) Before the effective date of a newly issued or 905 renewal policy at rates established in accordance with s. 906 627.062(2)(l), the applicant or insured must be given the 907 following notice, printed in at least 12-point boldfaced type: 908 909 THE RATE FOR THIS POLICY IS NOT SUBJECT TO FULL RATE 910 REGULATION BY THE FLORIDA OFFICE OF INSURANCE 911 REGULATION AND MAY BE HIGHER THAN RATES APPROVED BY 912 THAT OFFICE. A RESIDENTIAL PROPERTY POLICY SUBJECT TO 913 FULL RATE REGULATION REQUIREMENTS MAY BE AVAILABLE 914 FROM THIS INSURER, ANOTHER INSURER, OR CITIZENS 915 PROPERTY INSURANCE CORPORATION. PLEASE DISCUSS YOUR 916 POLICY OPTIONS WITH AN INSURANCE AGENT WHO CAN PROVIDE 917 A CITIZENS QUOTE. YOU MAY WISH TO VIEW THE OFFICE OF 918 INSURANCE REGULATION’S WEBSITE AT 919 WWW.SHOPANDCOMPARERATES.COM FOR MORE INFORMATION ABOUT 920 CHOICES AVAILABLE TO YOU. 921 922 (b) For policies renewed at a rate established in 923 accordance with s. 627.062(2)(l), the notice described in 924 paragraph (a) must be provided in writing at the same time as 925 the renewal notice on a document separate from the renewal 926 notice, but may be contained within the same mailing as the 927 renewal notice. 928 (4) Before the effective date of a newly issued policy at 929 rates established in accordance with s. 627.062(2)(l), or before 930 the effective date of the first renewal at rates established in 931 accordance with s. 627.062(2)(l) of a policy originally issued 932 before the effective date of this section, the applicant or 933 insured must: 934 (a) Be provided or offered, for comparison purposes, an 935 estimate of the premium for a policy from Citizens Property 936 Insurance Corporation reflecting substantially similar 937 coverages, limits, and deductibles to the extent available. 938 (b) Provide the insurer or agent with a signed copy of the 939 following acknowledgement form, which must be retained by the 940 insurer or agent for at least 3 years. If the acknowledgement 941 form is signed by the insured or if the insured remits payment 942 in the amount of the rate established in accordance with s. 943 627.062(2)(l) after being mailed or otherwise provided the 944 acknowledgement form specified in this paragraph, and after 945 being mailed, otherwise provided, or offered the comparison 946 specified in paragraph (a), an insurer renewing a policy at such 947 rate shall be deemed to comply with this section, and it is 948 presumed that the insured has been informed and understands the 949 information contained in the comparison and acknowledgement 950 forms: 951 952 ACKNOWLEDGEMENT 953 1. I HAVE REVIEWED THE REQUIRED DISCLOSURES AND 954 THE REQUIRED PREMIUM COMPARISON. 955 2. I UNDERSTAND THAT THE RATE FOR THIS 956 RESIDENTIAL PROPERTY INSURANCE POLICY IS NOT SUBJECT 957 TO FULL RATE REGULATION BY THE FLORIDA OFFICE OF 958 INSURANCE REGULATION AND MAY BE HIGHER THAN RATES 959 APPROVED BY THAT OFFICE. 960 3. I UNDERSTAND THAT A RESIDENTIAL PROPERTY 961 INSURANCE POLICY SUBJECT TO FULL RATE REGULATION 962 REQUIREMENTS MAY BE AVAILABLE FROM CITIZENS PROPERTY 963 INSURANCE CORPORATION. 964 4. I UNDERSTAND THAT THE FLORIDA OFFICE OF 965 INSURANCE REGULATION’S WEBSITE 966 WWW.SHOPANDCOMPARERATES.COM CONTAINS RESIDENTIAL 967 PROPERTY INSURANCE RATE COMPARISON INFORMATION. 968 5. I UNDERSTAND THAT IF CITIZENS PROPERTY 969 INSURANCE CORPORATION INCURS A DEFICIT BECAUSE OF 970 HURRICANE LOSSES OR OTHER LOSSES, I MAY BE REQUIRED TO 971 PAY AN ASSESSMENT BASED UPON THE PREMIUM FOR THIS 972 POLICY AND THAT A POLICYHOLDER OF CITIZENS PROPERTY 973 INSURANCE CORPORATION MAY BE REQUIRED TO PAY A 974 DIFFERENT ASSESSMENT. 975 976 (5) The following types of residential property insurance 977 policies are not eligible for rates established in accordance 978 with s. 627.062(2)(l) and are not subject to the other 979 provisions of this section: 980 (a) Residential property insurance policies that exclude 981 coverage for the perils of windstorm or hurricane. 982 (b) Residential property insurance policies that are 983 subject to a consent decree, agreement, understanding, or other 984 arrangement between the insurer and the office relating to rates 985 or premiums for policies removed from Citizens Property 986 Insurance Corporation. 987 (6) Notwithstanding s. 627.4133, an insurer that has issued 988 a policy under this section shall provide the named insured 989 written notice of nonrenewal at least 180 days before the 990 effective date of the nonrenewal as to subsequent nonrenewals. 991 However, this subsection does not prohibit an insurer from 992 cancelling a policy as permitted under s. 627.4133. The offer of 993 a policy at rates authorized by this section constitutes an 994 offer to renew the policy at the rates specified in the offer 995 and does not constitute a nonrenewal. 996 Section 4. This act shall take effect January 1, 2011.
