Bill Text: FL S1630 | 2016 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Operations of the Citizens Property Insurance Corporation
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Introduced - Dead) 2016-03-08 - Laid on Table, companion bill(s) passed, see CS/CS/HB 931 (Ch. 2016-229) [S1630 Detail]
Download: Florida-2016-S1630-Introduced.html
Bill Title: Operations of the Citizens Property Insurance Corporation
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Introduced - Dead) 2016-03-08 - Laid on Table, companion bill(s) passed, see CS/CS/HB 931 (Ch. 2016-229) [S1630 Detail]
Download: Florida-2016-S1630-Introduced.html
Florida Senate - 2016 SB 1630
By Senator Flores
37-00166B-16 20161630__
1 A bill to be entitled
2 An act relating to operations of the Citizens Property
3 Insurance Corporation; amending s. 627.0655, F.S.;
4 revising certain policyholder loss or expense-related
5 premium discounts; amending s. 627.351, F.S.;
6 specifying that a consumer representative appointed by
7 the Governor to the Citizens Property Insurance
8 Corporation’s board of governors is not prohibited
9 from practicing in a certain profession if required or
10 permitted by law or ordinance; revising the
11 requirements for licensed agents of the corporation;
12 revising a provision to permit specified information
13 from certain underwriting and claims files to be made
14 available to authorized insurers, rather than licensed
15 general lines insurance agents; providing requirements
16 and limitations for the use of such information by
17 certain entities; requiring the take-out program to be
18 revised for specified purposes by a specified date;
19 prohibiting an insurer from taking out policies after
20 such date except under certain conditions; requiring
21 the corporation to schedule up to a certain number of
22 cycles annually during which insurers may identify and
23 submit policy take-out requests; specifying
24 information required to be included in such requests;
25 providing conditions that must be agreed to by
26 insurers submitting a request; requiring the
27 corporation to maintain and make available specified
28 lists of insurers to its agents of record; requiring
29 the corporation, through its agents of record, to
30 provide policyholders with a notice regarding their
31 policy renewal options; specifying information
32 required to be included in the notice; providing that
33 a policyholder who accepts a take-out offer during a
34 specified time is considered a renewal policyholder
35 under certain circumstances; providing an effective
36 date.
37
38 Be It Enacted by the Legislature of the State of Florida:
39
40 Section 1. Section 627.0655, Florida Statutes, is amended
41 to read:
42 627.0655 Policyholder loss or expense-related premium
43 discounts.—An insurer or person authorized to engage in the
44 business of insurance in this state may include, in the premium
45 charged an insured for any policy, contract, or certificate of
46 insurance, a discount based on the fact that another policy,
47 contract, or certificate of any type has been purchased by the
48 insured from the same insurer or insurer group, the Citizens
49 Property Insurance Corporation created under s. 627.351(6) if
50 the same insurance agent is servicing both policies, or an
51 insurer that has removed the policy from the Citizens Property
52 Insurance Corporation if the same insurance agent is servicing
53 both policies.
54 Section 2. Paragraphs (c) and (x) of subsection (6) of
55 section 627.351, Florida Statutes, are amended, and paragraph
56 (ii) is added to that subsection, to read:
57 627.351 Insurance risk apportionment plans.—
58 (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
59 (c) The corporation’s plan of operation:
60 1. Must provide for adoption of residential property and
61 casualty insurance policy forms and commercial residential and
62 nonresidential property insurance forms, which must be approved
63 by the office before use. The corporation shall adopt the
64 following policy forms:
65 a. Standard personal lines policy forms that are
66 comprehensive multiperil policies providing full coverage of a
67 residential property equivalent to the coverage provided in the
68 private insurance market under an HO-3, HO-4, or HO-6 policy.
69 b. Basic personal lines policy forms that are policies
70 similar to an HO-8 policy or a dwelling fire policy that provide
71 coverage meeting the requirements of the secondary mortgage
72 market, but which is more limited than the coverage under a
73 standard policy.
74 c. Commercial lines residential and nonresidential policy
75 forms that are generally similar to the basic perils of full
76 coverage obtainable for commercial residential structures and
77 commercial nonresidential structures in the admitted voluntary
78 market.
79 d. Personal lines and commercial lines residential property
80 insurance forms that cover the peril of wind only. The forms are
81 applicable only to residential properties located in areas
82 eligible for coverage under the coastal account referred to in
83 sub-subparagraph (b)2.a.
84 e. Commercial lines nonresidential property insurance forms
85 that cover the peril of wind only. The forms are applicable only
86 to nonresidential properties located in areas eligible for
87 coverage under the coastal account referred to in sub
88 subparagraph (b)2.a.
89 f. The corporation may adopt variations of the policy forms
90 listed in sub-subparagraphs a.-e. which contain more restrictive
91 coverage.
92 g. Effective January 1, 2013, the corporation shall offer a
93 basic personal lines policy similar to an HO-8 policy with
94 dwelling repair based on common construction materials and
95 methods.
96 2. Must provide that the corporation adopt a program in
97 which the corporation and authorized insurers enter into quota
98 share primary insurance agreements for hurricane coverage, as
99 defined in s. 627.4025(2)(a), for eligible risks, and adopt
100 property insurance forms for eligible risks which cover the
101 peril of wind only.
102 a. As used in this subsection, the term:
103 (I) “Quota share primary insurance” means an arrangement in
104 which the primary hurricane coverage of an eligible risk is
105 provided in specified percentages by the corporation and an
106 authorized insurer. The corporation and authorized insurer are
107 each solely responsible for a specified percentage of hurricane
108 coverage of an eligible risk as set forth in a quota share
109 primary insurance agreement between the corporation and an
110 authorized insurer and the insurance contract. The
111 responsibility of the corporation or authorized insurer to pay
112 its specified percentage of hurricane losses of an eligible
113 risk, as set forth in the agreement, may not be altered by the
114 inability of the other party to pay its specified percentage of
115 losses. Eligible risks that are provided hurricane coverage
116 through a quota share primary insurance arrangement must be
117 provided policy forms that set forth the obligations of the
118 corporation and authorized insurer under the arrangement,
119 clearly specify the percentages of quota share primary insurance
120 provided by the corporation and authorized insurer, and
121 conspicuously and clearly state that the authorized insurer and
122 the corporation may not be held responsible beyond their
123 specified percentage of coverage of hurricane losses.
124 (II) “Eligible risks” means personal lines residential and
125 commercial lines residential risks that meet the underwriting
126 criteria of the corporation and are located in areas that were
127 eligible for coverage by the Florida Windstorm Underwriting
128 Association on January 1, 2002.
129 b. The corporation may enter into quota share primary
130 insurance agreements with authorized insurers at corporation
131 coverage levels of 90 percent and 50 percent.
132 c. If the corporation determines that additional coverage
133 levels are necessary to maximize participation in quota share
134 primary insurance agreements by authorized insurers, the
135 corporation may establish additional coverage levels. However,
136 the corporation’s quota share primary insurance coverage level
137 may not exceed 90 percent.
138 d. Any quota share primary insurance agreement entered into
139 between an authorized insurer and the corporation must provide
140 for a uniform specified percentage of coverage of hurricane
141 losses, by county or territory as set forth by the corporation
142 board, for all eligible risks of the authorized insurer covered
143 under the agreement.
144 e. Any quota share primary insurance agreement entered into
145 between an authorized insurer and the corporation is subject to
146 review and approval by the office. However, such agreement shall
147 be authorized only as to insurance contracts entered into
148 between an authorized insurer and an insured who is already
149 insured by the corporation for wind coverage.
150 f. For all eligible risks covered under quota share primary
151 insurance agreements, the exposure and coverage levels for both
152 the corporation and authorized insurers shall be reported by the
153 corporation to the Florida Hurricane Catastrophe Fund. For all
154 policies of eligible risks covered under such agreements, the
155 corporation and the authorized insurer must maintain complete
156 and accurate records for the purpose of exposure and loss
157 reimbursement audits as required by fund rules. The corporation
158 and the authorized insurer shall each maintain duplicate copies
159 of policy declaration pages and supporting claims documents.
160 g. The corporation board shall establish in its plan of
161 operation standards for quota share agreements which ensure that
162 there is no discriminatory application among insurers as to the
163 terms of the agreements, pricing of the agreements, incentive
164 provisions if any, and consideration paid for servicing policies
165 or adjusting claims.
166 h. The quota share primary insurance agreement between the
167 corporation and an authorized insurer must set forth the
168 specific terms under which coverage is provided, including, but
169 not limited to, the sale and servicing of policies issued under
170 the agreement by the insurance agent of the authorized insurer
171 producing the business, the reporting of information concerning
172 eligible risks, the payment of premium to the corporation, and
173 arrangements for the adjustment and payment of hurricane claims
174 incurred on eligible risks by the claims adjuster and personnel
175 of the authorized insurer. Entering into a quota sharing
176 insurance agreement between the corporation and an authorized
177 insurer is voluntary and at the discretion of the authorized
178 insurer.
179 3. May provide that the corporation may employ or otherwise
180 contract with individuals or other entities to provide
181 administrative or professional services that may be appropriate
182 to effectuate the plan. The corporation may borrow funds by
183 issuing bonds or by incurring other indebtedness, and shall have
184 other powers reasonably necessary to effectuate the requirements
185 of this subsection, including, without limitation, the power to
186 issue bonds and incur other indebtedness in order to refinance
187 outstanding bonds or other indebtedness. The corporation may
188 seek judicial validation of its bonds or other indebtedness
189 under chapter 75. The corporation may issue bonds or incur other
190 indebtedness, or have bonds issued on its behalf by a unit of
191 local government pursuant to subparagraph (q)2. in the absence
192 of a hurricane or other weather-related event, upon a
193 determination by the corporation, subject to approval by the
194 office, that such action would enable it to efficiently meet the
195 financial obligations of the corporation and that such
196 financings are reasonably necessary to effectuate the
197 requirements of this subsection. The corporation may take all
198 actions needed to facilitate tax-free status for such bonds or
199 indebtedness, including formation of trusts or other affiliated
200 entities. The corporation may pledge assessments, projected
201 recoveries from the Florida Hurricane Catastrophe Fund, other
202 reinsurance recoverables, policyholder surcharges and other
203 surcharges, and other funds available to the corporation as
204 security for bonds or other indebtedness. In recognition of s.
205 10, Art. I of the State Constitution, prohibiting the impairment
206 of obligations of contracts, it is the intent of the Legislature
207 that no action be taken whose purpose is to impair any bond
208 indenture or financing agreement or any revenue source committed
209 by contract to such bond or other indebtedness.
210 4. Must require that the corporation operate subject to the
211 supervision and approval of a board of governors consisting of
212 nine individuals who are residents of this state and who are
213 from different geographical areas of the state, one of whom is
214 appointed by the Governor and serves solely to advocate on
215 behalf of the consumer. The appointment of a consumer
216 representative by the Governor is deemed to be within the scope
217 of the exemption provided in s. 112.313(7)(b) and is in addition
218 to the appointments authorized under sub-subparagraph a.
219 a. The Governor, the Chief Financial Officer, the President
220 of the Senate, and the Speaker of the House of Representatives
221 shall each appoint two members of the board. At least one of the
222 two members appointed by each appointing officer must have
223 demonstrated expertise in insurance and be deemed to be within
224 the scope of the exemption provided in s. 112.313(7)(b). The
225 Chief Financial Officer shall designate one of the appointees as
226 chair. All board members serve at the pleasure of the appointing
227 officer. All members of the board are subject to removal at will
228 by the officers who appointed them. All board members, including
229 the chair, must be appointed to serve for 3-year terms beginning
230 annually on a date designated by the plan. However, for the
231 first term beginning on or after July 1, 2009, each appointing
232 officer shall appoint one member of the board for a 2-year term
233 and one member for a 3-year term. A board vacancy shall be
234 filled for the unexpired term by the appointing officer. The
235 Chief Financial Officer shall appoint a technical advisory group
236 to provide information and advice to the board in connection
237 with the board’s duties under this subsection. The executive
238 director and senior managers of the corporation shall be engaged
239 by the board and serve at the pleasure of the board. Any
240 executive director appointed on or after July 1, 2006, is
241 subject to confirmation by the Senate. The executive director is
242 responsible for employing other staff as the corporation may
243 require, subject to review and concurrence by the board.
244 b. The board shall create a Market Accountability Advisory
245 Committee to assist the corporation in developing awareness of
246 its rates and its customer and agent service levels in
247 relationship to the voluntary market insurers writing similar
248 coverage.
249 (I) The members of the advisory committee consist of the
250 following 11 persons, one of whom must be elected chair by the
251 members of the committee: four representatives, one appointed by
252 the Florida Association of Insurance Agents, one by the Florida
253 Association of Insurance and Financial Advisors, one by the
254 Professional Insurance Agents of Florida, and one by the Latin
255 American Association of Insurance Agencies; three
256 representatives appointed by the insurers with the three highest
257 voluntary market share of residential property insurance
258 business in the state; one representative from the Office of
259 Insurance Regulation; one consumer appointed by the board who is
260 insured by the corporation at the time of appointment to the
261 committee; one representative appointed by the Florida
262 Association of Realtors; and one representative appointed by the
263 Florida Bankers Association. All members shall be appointed to
264 3-year terms and may serve for consecutive terms.
265 (II) The committee shall report to the corporation at each
266 board meeting on insurance market issues which may include rates
267 and rate competition with the voluntary market; service,
268 including policy issuance, claims processing, and general
269 responsiveness to policyholders, applicants, and agents; and
270 matters relating to depopulation.
271 5. Must provide a procedure for determining the eligibility
272 of a risk for coverage, as follows:
273 a. Subject to s. 627.3517, with respect to personal lines
274 residential risks, if the risk is offered coverage from an
275 authorized insurer at the insurer’s approved rate under a
276 standard policy including wind coverage or, if consistent with
277 the insurer’s underwriting rules as filed with the office, a
278 basic policy including wind coverage, for a new application to
279 the corporation for coverage, the risk is not eligible for any
280 policy issued by the corporation unless the premium for coverage
281 from the authorized insurer is more than 15 percent greater than
282 the premium for comparable coverage from the corporation.
283 Whenever an offer of coverage for a personal lines residential
284 risk is received for a policyholder of the corporation at
285 renewal from an authorized insurer, if the offer is equal to or
286 less than the corporation’s renewal premium for comparable
287 coverage, the risk is not eligible for coverage with the
288 corporation. If the risk is not able to obtain such offer, the
289 risk is eligible for a standard policy including wind coverage
290 or a basic policy including wind coverage issued by the
291 corporation; however, if the risk could not be insured under a
292 standard policy including wind coverage regardless of market
293 conditions, the risk is eligible for a basic policy including
294 wind coverage unless rejected under subparagraph 8. However, a
295 policyholder removed from the corporation through an assumption
296 agreement remains eligible for coverage from the corporation
297 until the end of the assumption period. The corporation shall
298 determine the type of policy to be provided on the basis of
299 objective standards specified in the underwriting manual and
300 based on generally accepted underwriting practices.
301 (I) If the risk accepts an offer of coverage through the
302 market assistance plan or through a mechanism established by the
303 corporation other than a plan established by s. 627.3518, before
304 a policy is issued to the risk by the corporation or during the
305 first 30 days of coverage by the corporation, and the producing
306 agent who submitted the application to the plan or to the
307 corporation is not currently appointed by the insurer, the
308 insurer shall:
309 (A) Pay to the producing agent of record of the policy for
310 the first year, an amount that is the greater of the insurer’s
311 usual and customary commission for the type of policy written or
312 a fee equal to the usual and customary commission of the
313 corporation; or
314 (B) Offer to allow the producing agent of record of the
315 policy to continue servicing the policy for at least 1 year and
316 offer to pay the agent the greater of the insurer’s or the
317 corporation’s usual and customary commission for the type of
318 policy written.
319
320 If the producing agent is unwilling or unable to accept
321 appointment, the new insurer shall pay the agent in accordance
322 with sub-sub-sub-subparagraph (A).
323 (II) If the corporation enters into a contractual agreement
324 for a take-out plan, the producing agent of record of the
325 corporation policy is entitled to retain any unearned commission
326 on the policy, and the insurer shall:
327 (A) Pay to the producing agent of record, for the first
328 year, an amount that is the greater of the insurer’s usual and
329 customary commission for the type of policy written or a fee
330 equal to the usual and customary commission of the corporation;
331 or
332 (B) Offer to allow the producing agent of record to
333 continue servicing the policy for at least 1 year and offer to
334 pay the agent the greater of the insurer’s or the corporation’s
335 usual and customary commission for the type of policy written.
336
337 If the producing agent is unwilling or unable to accept
338 appointment, the new insurer shall pay the agent in accordance
339 with sub-sub-sub-subparagraph (A).
340 b. With respect to commercial lines residential risks, for
341 a new application to the corporation for coverage, if the risk
342 is offered coverage under a policy including wind coverage from
343 an authorized insurer at its approved rate, the risk is not
344 eligible for a policy issued by the corporation unless the
345 premium for coverage from the authorized insurer is more than 15
346 percent greater than the premium for comparable coverage from
347 the corporation. Whenever an offer of coverage for a commercial
348 lines residential risk is received for a policyholder of the
349 corporation at renewal from an authorized insurer, if the offer
350 is equal to or less than the corporation’s renewal premium for
351 comparable coverage, the risk is not eligible for coverage with
352 the corporation. If the risk is not able to obtain any such
353 offer, the risk is eligible for a policy including wind coverage
354 issued by the corporation. However, a policyholder removed from
355 the corporation through an assumption agreement remains eligible
356 for coverage from the corporation until the end of the
357 assumption period.
358 (I) If the risk accepts an offer of coverage through the
359 market assistance plan or through a mechanism established by the
360 corporation other than a plan established by s. 627.3518, before
361 a policy is issued to the risk by the corporation or during the
362 first 30 days of coverage by the corporation, and the producing
363 agent who submitted the application to the plan or the
364 corporation is not currently appointed by the insurer, the
365 insurer shall:
366 (A) Pay to the producing agent of record of the policy, for
367 the first year, an amount that is the greater of the insurer’s
368 usual and customary commission for the type of policy written or
369 a fee equal to the usual and customary commission of the
370 corporation; or
371 (B) Offer to allow the producing agent of record of the
372 policy to continue servicing the policy for at least 1 year and
373 offer to pay the agent the greater of the insurer’s or the
374 corporation’s usual and customary commission for the type of
375 policy written.
376
377 If the producing agent is unwilling or unable to accept
378 appointment, the new insurer shall pay the agent in accordance
379 with sub-sub-sub-subparagraph (A).
380 (II) If the corporation enters into a contractual agreement
381 for a take-out plan, the producing agent of record of the
382 corporation policy is entitled to retain any unearned commission
383 on the policy, and the insurer shall:
384 (A) Pay to the producing agent of record, for the first
385 year, an amount that is the greater of the insurer’s usual and
386 customary commission for the type of policy written or a fee
387 equal to the usual and customary commission of the corporation;
388 or
389 (B) Offer to allow the producing agent of record to
390 continue servicing the policy for at least 1 year and offer to
391 pay the agent the greater of the insurer’s or the corporation’s
392 usual and customary commission for the type of policy written.
393
394 If the producing agent is unwilling or unable to accept
395 appointment, the new insurer shall pay the agent in accordance
396 with sub-sub-sub-subparagraph (A).
397 c. For purposes of determining comparable coverage under
398 sub-subparagraphs a. and b., the comparison must be based on
399 those forms and coverages that are reasonably comparable. The
400 corporation may rely on a determination of comparable coverage
401 and premium made by the producing agent who submits the
402 application to the corporation, made in the agent’s capacity as
403 the corporation’s agent. A comparison may be made solely of the
404 premium with respect to the main building or structure only on
405 the following basis: the same coverage A or other building
406 limits; the same percentage hurricane deductible that applies on
407 an annual basis or that applies to each hurricane for commercial
408 residential property; the same percentage of ordinance and law
409 coverage, if the same limit is offered by both the corporation
410 and the authorized insurer; the same mitigation credits, to the
411 extent the same types of credits are offered both by the
412 corporation and the authorized insurer; the same method for loss
413 payment, such as replacement cost or actual cash value, if the
414 same method is offered both by the corporation and the
415 authorized insurer in accordance with underwriting rules; and
416 any other form or coverage that is reasonably comparable as
417 determined by the board. If an application is submitted to the
418 corporation for wind-only coverage in the coastal account, the
419 premium for the corporation’s wind-only policy plus the premium
420 for the ex-wind policy that is offered by an authorized insurer
421 to the applicant must be compared to the premium for multiperil
422 coverage offered by an authorized insurer, subject to the
423 standards for comparison specified in this subparagraph. If the
424 corporation or the applicant requests from the authorized
425 insurer a breakdown of the premium of the offer by types of
426 coverage so that a comparison may be made by the corporation or
427 its agent and the authorized insurer refuses or is unable to
428 provide such information, the corporation may treat the offer as
429 not being an offer of coverage from an authorized insurer at the
430 insurer’s approved rate.
431 6. Must include rules for classifications of risks and
432 rates.
433 7. Must provide that if premium and investment income for
434 an account attributable to a particular calendar year are in
435 excess of projected losses and expenses for the account
436 attributable to that year, such excess shall be held in surplus
437 in the account. Such surplus must be available to defray
438 deficits in that account as to future years and used for that
439 purpose before assessing assessable insurers and assessable
440 insureds as to any calendar year.
441 8. Must provide objective criteria and procedures to be
442 uniformly applied to all applicants in determining whether an
443 individual risk is so hazardous as to be uninsurable. In making
444 this determination and in establishing the criteria and
445 procedures, the following must be considered:
446 a. Whether the likelihood of a loss for the individual risk
447 is substantially higher than for other risks of the same class;
448 and
449 b. Whether the uncertainty associated with the individual
450 risk is such that an appropriate premium cannot be determined.
451
452 The acceptance or rejection of a risk by the corporation shall
453 be construed as the private placement of insurance, and the
454 provisions of chapter 120 do not apply.
455 9. Must provide that the corporation make its best efforts
456 to procure catastrophe reinsurance at reasonable rates, to cover
457 its projected 100-year probable maximum loss as determined by
458 the board of governors.
459 10. The policies issued by the corporation must provide
460 that if the corporation or the market assistance plan obtains an
461 offer from an authorized insurer to cover the risk at its
462 approved rates, the risk is no longer eligible for renewal
463 through the corporation, except as otherwise provided in this
464 subsection.
465 11. Corporation policies and applications must include a
466 notice that the corporation policy could, under this section, be
467 replaced with a policy issued by an authorized insurer which
468 does not provide coverage identical to the coverage provided by
469 the corporation. The notice must also specify that acceptance of
470 corporation coverage creates a conclusive presumption that the
471 applicant or policyholder is aware of this potential.
472 12. May establish, subject to approval by the office,
473 different eligibility requirements and operational procedures
474 for any line or type of coverage for any specified county or
475 area if the board determines that such changes are justified due
476 to the voluntary market being sufficiently stable and
477 competitive in such area or for such line or type of coverage
478 and that consumers who, in good faith, are unable to obtain
479 insurance through the voluntary market through ordinary methods
480 continue to have access to coverage from the corporation. If
481 coverage is sought in connection with a real property transfer,
482 the requirements and procedures may not provide an effective
483 date of coverage later than the date of the closing of the
484 transfer as established by the transferor, the transferee, and,
485 if applicable, the lender.
486 13. Must provide that, with respect to the coastal account,
487 any assessable insurer with a surplus as to policyholders of $25
488 million or less writing 25 percent or more of its total
489 countrywide property insurance premiums in this state may
490 petition the office, within the first 90 days of each calendar
491 year, to qualify as a limited apportionment company. A regular
492 assessment levied by the corporation on a limited apportionment
493 company for a deficit incurred by the corporation for the
494 coastal account may be paid to the corporation on a monthly
495 basis as the assessments are collected by the limited
496 apportionment company from its insureds, but a limited
497 apportionment company must begin collecting the regular
498 assessments not later than 90 days after the regular assessments
499 are levied by the corporation, and the regular assessments must
500 be paid in full within 15 months after being levied by the
501 corporation. A limited apportionment company shall collect from
502 its policyholders any emergency assessment imposed under sub
503 subparagraph (b)3.d. The plan must provide that, if the office
504 determines that any regular assessment will result in an
505 impairment of the surplus of a limited apportionment company,
506 the office may direct that all or part of such assessment be
507 deferred as provided in subparagraph (q)4. However, an emergency
508 assessment to be collected from policyholders under sub
509 subparagraph (b)3.d. may not be limited or deferred.
510 14. Must provide that the corporation appoint as its
511 licensed agents only those agents who throughout such
512 appointments also hold an appointment as defined in s.
513 626.015(3) by with an insurer who at the time of the agent’s
514 initial appointment by the corporation is authorized to write
515 and is actually writing or renewing personal lines residential
516 property coverage, commercial residential property coverage, or
517 commercial nonresidential property coverage within the state.
518 15. Must provide a premium payment plan option to its
519 policyholders which, at a minimum, allows for quarterly and
520 semiannual payment of premiums. A monthly payment plan may, but
521 is not required to, be offered.
522 16. Must limit coverage on mobile homes or manufactured
523 homes built before 1994 to actual cash value of the dwelling
524 rather than replacement costs of the dwelling.
525 17. Must provide coverage for manufactured or mobile home
526 dwellings. Such coverage must also include the following
527 attached structures:
528 a. Screened enclosures that are aluminum framed or screened
529 enclosures that are not covered by the same or substantially the
530 same materials as those of the primary dwelling;
531 b. Carports that are aluminum or carports that are not
532 covered by the same or substantially the same materials as those
533 of the primary dwelling; and
534 c. Patios that have a roof covering that is constructed of
535 materials that are not the same or substantially the same
536 materials as those of the primary dwelling.
537
538 The corporation shall make available a policy for mobile homes
539 or manufactured homes for a minimum insured value of at least
540 $3,000.
541 18. May provide such limits of coverage as the board
542 determines, consistent with the requirements of this subsection.
543 19. May require commercial property to meet specified
544 hurricane mitigation construction features as a condition of
545 eligibility for coverage.
546 20. Must provide that new or renewal policies issued by the
547 corporation on or after January 1, 2012, which cover sinkhole
548 loss do not include coverage for any loss to appurtenant
549 structures, driveways, sidewalks, decks, or patios that are
550 directly or indirectly caused by sinkhole activity. The
551 corporation shall exclude such coverage using a notice of
552 coverage change, which may be included with the policy renewal,
553 and not by issuance of a notice of nonrenewal of the excluded
554 coverage upon renewal of the current policy.
555 21. As of January 1, 2012, must require that the agent
556 obtain from an applicant for coverage from the corporation an
557 acknowledgment signed by the applicant, which includes, at a
558 minimum, the following statement:
559 ACKNOWLEDGMENT OF POTENTIAL SURCHARGE
560 AND ASSESSMENT LIABILITY:
561 1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
562 CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
563 DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
564 MY POLICY COULD BE SUBJECT TO SURCHARGES, WHICH WILL BE DUE AND
565 PAYABLE UPON RENEWAL, CANCELLATION, OR TERMINATION OF THE
566 POLICY, AND THAT THE SURCHARGES COULD BE AS HIGH AS 45 PERCENT
567 OF MY PREMIUM, OR A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA
568 LEGISLATURE.
569 2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
570 SURCHARGE, WHICH COULD BE AS HIGH AS 45 PERCENT OF MY PREMIUM,
571 BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND THAT TO
572 BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN
573 PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR RENEWING COVERAGE
574 WITH CITIZENS. I UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES
575 ARE REGULATED AND APPROVED BY THE STATE.
576 3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
577 ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
578 INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
579 FLORIDA LEGISLATURE.
580 4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
581 CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
582 STATE OF FLORIDA.
583 a. The corporation shall maintain, in electronic format or
584 otherwise, a copy of the applicant’s signed acknowledgment and
585 provide a copy of the statement to the policyholder as part of
586 the first renewal after the effective date of this subparagraph.
587 b. The signed acknowledgment form creates a conclusive
588 presumption that the policyholder understood and accepted his or
589 her potential surcharge and assessment liability as a
590 policyholder of the corporation.
591 (x)1. The following records of the corporation are
592 confidential and exempt from the provisions of s. 119.07(1) and
593 s. 24(a), Art. I of the State Constitution:
594 a. Underwriting files, except that a policyholder or an
595 applicant shall have access to his or her own underwriting
596 files. Confidential and exempt underwriting file records may
597 also be released to other governmental agencies upon written
598 request and demonstration of need; such records held by the
599 receiving agency remain confidential and exempt as provided
600 herein.
601 b. Claims files, until termination of all litigation and
602 settlement of all claims arising out of the same incident,
603 although portions of the claims files may remain exempt, as
604 otherwise provided by law. Confidential and exempt claims file
605 records may be released to other governmental agencies upon
606 written request and demonstration of need; such records held by
607 the receiving agency remain confidential and exempt as provided
608 herein.
609 c. Records obtained or generated by an internal auditor
610 pursuant to a routine audit, until the audit is completed, or if
611 the audit is conducted as part of an investigation, until the
612 investigation is closed or ceases to be active. An investigation
613 is considered “active” while the investigation is being
614 conducted with a reasonable, good faith belief that it could
615 lead to the filing of administrative, civil, or criminal
616 proceedings.
617 d. Matters reasonably encompassed in privileged attorney
618 client communications.
619 e. Proprietary information licensed to the corporation
620 under contract and the contract provides for the confidentiality
621 of such proprietary information.
622 f. All information relating to the medical condition or
623 medical status of a corporation employee which is not relevant
624 to the employee’s capacity to perform his or her duties, except
625 as otherwise provided in this paragraph. Information that is
626 exempt shall include, but is not limited to, information
627 relating to workers’ compensation, insurance benefits, and
628 retirement or disability benefits.
629 g. Upon an employee’s entrance into the employee assistance
630 program, a program to assist any employee who has a behavioral
631 or medical disorder, substance abuse problem, or emotional
632 difficulty that which affects the employee’s job performance,
633 all records relative to that participation shall be confidential
634 and exempt from the provisions of s. 119.07(1) and s. 24(a),
635 Art. I of the State Constitution, except as otherwise provided
636 in s. 112.0455(11).
637 h. Information relating to negotiations for financing,
638 reinsurance, depopulation, or contractual services, until the
639 conclusion of the negotiations.
640 i. Minutes of closed meetings regarding underwriting files,
641 and minutes of closed meetings regarding an open claims file
642 until termination of all litigation and settlement of all claims
643 with regard to that claim, except that information otherwise
644 confidential or exempt by law shall be redacted.
645 2. If an authorized insurer is considering underwriting a
646 risk insured by the corporation, relevant underwriting files and
647 confidential claims files may be released to the insurer
648 provided the insurer agrees in writing, notarized and under
649 oath, to maintain the confidentiality of such files. If a file
650 is transferred to an insurer, that file is no longer a public
651 record because it is not held by an agency subject to the
652 provisions of the public records law. Underwriting files and
653 confidential claims files may also be released to staff and the
654 board of governors of the market assistance plan established
655 pursuant to s. 627.3515, who must retain the confidentiality of
656 such files, except such files may be released to authorized
657 insurers that are considering assuming the risks to which the
658 files apply, provided the insurer agrees in writing, notarized
659 and under oath, to maintain the confidentiality of such files.
660 Finally, the corporation or the board or staff of the market
661 assistance plan may make the following information obtained from
662 underwriting files and confidential claims files available to
663 authorized insurers licensed general lines insurance agents:
664 name, address, and telephone number of the residential property
665 owner or insured; location of the risk; rating information; loss
666 history; and policy type. The receiving authorized insurer
667 licensed general lines insurance agent must retain the
668 confidentiality of the information received and may use the
669 information only for the purposes of developing a take-out plan
670 to be submitted to the office for approval or otherwise
671 analyzing the underwriting of a risk or risks insured by the
672 corporation on behalf of the private insurance market. The
673 authorized insurer receiving information under this subparagraph
674 may not use the information for the direct solicitation of
675 policyholders. An entity that has obtained a permit to become an
676 authorized insurer, a reinsurer, a reinsurance broker, or a
677 modeling company may receive the information available under
678 this subparagraph for the sole purpose of analyzing risks for
679 underwriting in the private insurance market and must retain the
680 confidentiality of the information received. Such entities may
681 not use the information for the direct solicitation of
682 policyholders.
683 3. A policyholder who has filed suit against the
684 corporation has the right to discover the contents of his or her
685 own claims file to the same extent that discovery of such
686 contents would be available from a private insurer in litigation
687 as provided by the Florida Rules of Civil Procedure, the Florida
688 Evidence Code, and other applicable law. Pursuant to subpoena, a
689 third party has the right to discover the contents of an
690 insured’s or applicant’s underwriting or claims file to the same
691 extent that discovery of such contents would be available from a
692 private insurer by subpoena as provided by the Florida Rules of
693 Civil Procedure, the Florida Evidence Code, and other applicable
694 law, and subject to any confidentiality protections requested by
695 the corporation and agreed to by the seeking party or ordered by
696 the court. The corporation may release confidential underwriting
697 and claims file contents and information as it deems necessary
698 and appropriate to underwrite or service insurance policies and
699 claims, subject to any confidentiality protections deemed
700 necessary and appropriate by the corporation.
701 4. Portions of meetings of the corporation are exempt from
702 the provisions of s. 286.011 and s. 24(b), Art. I of the State
703 Constitution wherein confidential underwriting files or
704 confidential open claims files are discussed. All portions of
705 corporation meetings which are closed to the public shall be
706 recorded by a court reporter. The court reporter shall record
707 the times of commencement and termination of the meeting, all
708 discussion and proceedings, the names of all persons present at
709 any time, and the names of all persons speaking. No portion of
710 any closed meeting shall be off the record. Subject to the
711 provisions hereof and s. 119.07(1)(d)-(f), the court reporter’s
712 notes of any closed meeting shall be retained by the corporation
713 for a minimum of 5 years. A copy of the transcript, less any
714 exempt matters, of any closed meeting wherein claims are
715 discussed shall become public as to individual claims after
716 settlement of the claim.
717 (ii) The corporation shall revise the programs adopted
718 pursuant to sub-subparagraph (q)3.a. to maximize policyholder
719 options and encourage increased participation by insurers and
720 agents. No later than January 1, 2017, such revisions must
721 comply with this paragraph.
722 1. The corporation must schedule no more than 3 cycles per
723 year during which insurers may identify policies they wish to
724 take out and may submit requests to take out such policies to
725 the corporation in a form and manner prescribed by rule. An
726 insurer’s take-out request must include a description of the
727 coverages offered and an estimated premium. In submitting any
728 take-out request, an insurer must agree that:
729 a. The initial premium of the insurer will not exceed its
730 estimated premium by more than 10 percent, excluding coverage
731 changes and assessments.
732 b. The insurer will provide coverage comparable to that
733 offered by the corporation and may use the same policy form used
734 by the corporation for any take-out policies for 3 full renewal
735 cycles.
736 2. For each policy of the corporation identified under
737 subparagraph 1., the corporation shall maintain and make
738 available to the agent of record a consolidated list of all
739 insurers requesting the policy. The list must contain the
740 information described in subparagraph 1.
741 3. The corporation shall provide written notice to its
742 policyholders and the agents of record informing them of their
743 option to accept one of the take-out offers presented or to
744 remain with the corporation. The notice must be in a format
745 prescribed by rule and include the amount of the estimated
746 premium for the coverage of each offering insurer, the amount of
747 the premium for the coverage provided by the corporation, and a
748 description of the coverage offered by each insurer and the
749 coverage provided by the corporation, which includes an
750 explanation of any differences among the coverage offered by
751 each insurer and the coverage provided by the corporation.
752 4. A policyholder who accepted a take-out offer by an
753 insurer in the previous 36 months is considered a renewal
754 policyholder under s. 627.3518 if the corporation determines
755 that the insurer continues to insure the policyholder and failed
756 to meet the requirements of sub-subparagraph 1.a., that the
757 insurer nonrenewed the policyholder for reasons other than the
758 nonpayment of premium, or that the insurer increased the rate on
759 the policy in excess of the increase allowed for the corporation
760 under subparagraph (n)6.
761 Section 3. This act shall take effect July 1, 2016.
