Bill Text: FL S1672 | 2014 | Regular Session | Enrolled


Bill Title: Property Insurance

Spectrum: Committee Bill

Status: (Passed) 2014-06-13 - Chapter No. 2014-104 [S1672 Detail]

Download: Florida-2014-S1672-Enrolled.html
       ENROLLED
       2014 Legislature            CS for CS for SB 1672, 2nd Engrossed
       
       
       
       
       
       
                                                             20141672er
    1  
    2         An act relating to property insurance; amending s.
    3         626.621, F.S.; providing additional grounds for
    4         refusing, suspending, or revoking a license or
    5         appointment of an insurance agent, adjuster, customer
    6         representative, or managing general agent based on the
    7         acceptance of payment for certain referrals; amending
    8         s. 626.854, F.S.; prohibiting a public adjuster or
    9         public adjuster apprentice from choosing the persons
   10         or entities that will perform repair work in a
   11         property insurance claim; amending s. 627.351, F.S.;
   12         deleting reference to the Residential Property and
   13         Casualty Joint Underwriting Association with respect
   14         to issuing certain residential or commercial policies;
   15         requiring the corporation to cease offering new
   16         commercial residential policies providing multiperil
   17         coverage after a certain date and continue offering
   18         commercial residential wind-only policies; authorizing
   19         the corporation to offer commercial residential
   20         policies excluding wind; providing exceptions;
   21         requiring the corporation’s board to contract with the
   22         Division of Administrative Hearings to hear protests
   23         of the corporation’s decisions regarding the purchase
   24         of commodities and contractual services and issue a
   25         recommended order; requiring the board to take final
   26         action in a public meeting; revising the date for
   27         submitting the annual loss-ratio report for
   28         residential coverage; repealing s. 627.3519, F.S.,
   29         relating to an annual report requirement for aggregate
   30         net probable maximum losses; amending s. 627.35191,
   31         F.S.; requiring the corporation to annually provide
   32         certain estimates for the next 12-month period to the
   33         Legislature and the Financial Services Commission;
   34         amending s. 627.711, F.S.; prohibiting a mitigation
   35         inspector from offering or delivering compensation,
   36         and an insurance agency, agent, customer
   37         representative, or employee from accepting
   38         compensation for referring an owner to the inspector
   39         or inspection company; authorizing an insurer to
   40         exempt a uniform mitigation verification form from
   41         independent verification under certain circumstances;
   42         providing that the form provided to the corporation is
   43         not subject to verification and the property is not
   44         subject to reinspection under certain circumstances;
   45         amending s. 817.234, F.S.; prohibiting a contractor
   46         from paying, waiving, or rebating a property insurance
   47         deductible; providing penalties; providing effective
   48         dates.
   49          
   50  Be It Enacted by the Legislature of the State of Florida:
   51  
   52         Section 1. Subsection (15) is added to section 626.621,
   53  Florida Statutes, to read:
   54         626.621 Grounds for discretionary refusal, suspension, or
   55  revocation of agent’s, adjuster’s, customer representative’s,
   56  service representative’s, or managing general agent’s license or
   57  appointment.—The department may, in its discretion, deny an
   58  application for, suspend, revoke, or refuse to renew or continue
   59  the license or appointment of any applicant, agent, adjuster,
   60  customer representative, service representative, or managing
   61  general agent, and it may suspend or revoke the eligibility to
   62  hold a license or appointment of any such person, if it finds
   63  that as to the applicant, licensee, or appointee any one or more
   64  of the following applicable grounds exist under circumstances
   65  for which such denial, suspension, revocation, or refusal is not
   66  mandatory under s. 626.611:
   67         (15) Directly or indirectly accepting any compensation,
   68  inducement, or reward from an inspector for the referral of the
   69  owner of the inspected property to the inspector or inspection
   70  company. This prohibition applies to an inspection intended for
   71  submission to an insurer in order to obtain property insurance
   72  coverage or establish the applicable property insurance premium.
   73         Section 2. Subsection (18) of section 626.854, Florida
   74  Statutes, is redesignated as subsection (19) and amended, and
   75  subsection (18) is added to that section, to read:
   76         626.854 “Public adjuster” defined; prohibitions.—The
   77  Legislature finds that it is necessary for the protection of the
   78  public to regulate public insurance adjusters and to prevent the
   79  unauthorized practice of law.
   80         (18) A public adjuster, a public adjuster apprentice, or a
   81  person acting on behalf of an adjuster or apprentice may not
   82  enter into a contract or accept a power of attorney that vests
   83  in the public adjuster, the public adjuster apprentice, or the
   84  person acting on behalf of the adjuster or apprentice the
   85  effective authority to choose the persons or entities that will
   86  perform repair work in a property insurance claim.
   87         (19)(18)The provisions of Subsections (5)-(18) (5)-(17)
   88  apply only to residential property insurance policies and
   89  condominium unit owner policies as described defined in s.
   90  718.111(11).
   91         Section 3. Paragraphs (b), (e), and (hh) of subsection (6)
   92  of section 627.351, Florida Statutes, are amended to read:
   93         627.351 Insurance risk apportionment plans.—
   94         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
   95         (b)1. All insurers authorized to write one or more subject
   96  lines of business in this state are subject to assessment by the
   97  corporation and, for the purposes of this subsection, are
   98  referred to collectively as “assessable insurers.” Insurers
   99  writing one or more subject lines of business in this state
  100  pursuant to part VIII of chapter 626 are not assessable
  101  insurers; however, but insureds who procure one or more subject
  102  lines of business in this state pursuant to part VIII of chapter
  103  626 are subject to assessment by the corporation and are
  104  referred to collectively as “assessable insureds.” An insurer’s
  105  assessment liability begins on the first day of the calendar
  106  year following the year in which the insurer was issued a
  107  certificate of authority to transact insurance for subject lines
  108  of business in this state and terminates 1 year after the end of
  109  the first calendar year during which the insurer no longer holds
  110  a certificate of authority to transact insurance for subject
  111  lines of business in this state.
  112         2.a. All revenues, assets, liabilities, losses, and
  113  expenses of the corporation shall be divided into three separate
  114  accounts as follows:
  115         (I) A personal lines account for personal residential
  116  policies issued by the corporation, or issued by the Residential
  117  Property and Casualty Joint Underwriting Association and renewed
  118  by the corporation, which provides comprehensive, multiperil
  119  coverage on risks that are not located in areas eligible for
  120  coverage by the Florida Windstorm Underwriting Association as
  121  those areas were defined on January 1, 2002, and for policies
  122  that do not provide coverage for the peril of wind on risks that
  123  are located in such areas;
  124         (II) A commercial lines account for commercial residential
  125  and commercial nonresidential policies issued by the
  126  corporation, or issued by the Residential Property and Casualty
  127  Joint Underwriting Association and renewed by the corporation,
  128  which provides coverage for basic property perils on risks that
  129  are not located in areas eligible for coverage by the Florida
  130  Windstorm Underwriting Association as those areas were defined
  131  on January 1, 2002, and for policies that do not provide
  132  coverage for the peril of wind on risks that are located in such
  133  areas; and
  134         (III) A coastal account for personal residential policies
  135  and commercial residential and commercial nonresidential
  136  property policies issued by the corporation, or transferred to
  137  the corporation, which provides coverage for the peril of wind
  138  on risks that are located in areas eligible for coverage by the
  139  Florida Windstorm Underwriting Association as those areas were
  140  defined on January 1, 2002. The corporation may offer policies
  141  that provide multiperil coverage and the corporation shall
  142  continue to offer policies that provide coverage only for the
  143  peril of wind for risks located in areas eligible for coverage
  144  in the coastal account. Effective July 1, 2014, the corporation
  145  shall cease offering new commercial residential policies
  146  providing multiperil coverage and shall instead continue to
  147  offer commercial residential wind-only policies, and may offer
  148  commercial residential policies excluding wind. The corporation
  149  may, however, continue to renew a commercial residential
  150  multiperil policy on a building that is insured by the
  151  corporation on June 30, 2014, under a multiperil policy. In
  152  issuing multiperil coverage, the corporation may use its
  153  approved policy forms and rates for the personal lines account.
  154  An applicant or insured who is eligible to purchase a multiperil
  155  policy from the corporation may purchase a multiperil policy
  156  from an authorized insurer without prejudice to the applicant’s
  157  or insured’s eligibility to prospectively purchase a policy that
  158  provides coverage only for the peril of wind from the
  159  corporation. An applicant or insured who is eligible for a
  160  corporation policy that provides coverage only for the peril of
  161  wind may elect to purchase or retain such policy and also
  162  purchase or retain coverage excluding wind from an authorized
  163  insurer without prejudice to the applicant’s or insured’s
  164  eligibility to prospectively purchase a policy that provides
  165  multiperil coverage from the corporation. It is the goal of the
  166  Legislature that there be an overall average savings of 10
  167  percent or more for a policyholder who currently has a wind-only
  168  policy with the corporation, and an ex-wind policy with a
  169  voluntary insurer or the corporation, and who obtains a
  170  multiperil policy from the corporation. It is the intent of the
  171  Legislature that the offer of multiperil coverage in the coastal
  172  account be made and implemented in a manner that does not
  173  adversely affect the tax-exempt status of the corporation or
  174  creditworthiness of or security for currently outstanding
  175  financing obligations or credit facilities of the coastal
  176  account, the personal lines account, or the commercial lines
  177  account. The coastal account must also include quota share
  178  primary insurance under subparagraph (c)2. The area eligible for
  179  coverage under the coastal account also includes the area within
  180  Port Canaveral, which is bordered on the south by the City of
  181  Cape Canaveral, bordered on the west by the Banana River, and
  182  bordered on the north by Federal Government property.
  183         b. The three separate accounts must be maintained as long
  184  as financing obligations entered into by the Florida Windstorm
  185  Underwriting Association or Residential Property and Casualty
  186  Joint Underwriting Association are outstanding, in accordance
  187  with the terms of the corresponding financing documents. If the
  188  financing obligations are no longer outstanding, the corporation
  189  may use a single account for all revenues, assets, liabilities,
  190  losses, and expenses of the corporation. Consistent with this
  191  subparagraph and prudent investment policies that minimize the
  192  cost of carrying debt, the board shall exercise its best efforts
  193  to retire existing debt or obtain the approval of necessary
  194  parties to amend the terms of existing debt, so as to structure
  195  the most efficient plan for consolidating to consolidate the
  196  three separate accounts into a single account.
  197         c. Creditors of the Residential Property and Casualty Joint
  198  Underwriting Association and the accounts specified in sub-sub
  199  subparagraphs a.(I) and (II) may have a claim against, and
  200  recourse to, those accounts and no claim against, or recourse
  201  to, the account referred to in sub-sub-subparagraph a.(III).
  202  Creditors of the Florida Windstorm Underwriting Association have
  203  a claim against, and recourse to, the account referred to in
  204  sub-sub-subparagraph a.(III) and no claim against, or recourse
  205  to, the accounts referred to in sub-sub-subparagraphs a.(I) and
  206  (II).
  207         d. Revenues, assets, liabilities, losses, and expenses not
  208  attributable to particular accounts shall be prorated among the
  209  accounts.
  210         e. The Legislature finds that the revenues of the
  211  corporation are revenues that are necessary to meet the
  212  requirements set forth in documents authorizing the issuance of
  213  bonds under this subsection.
  214         f. The income of the corporation may not inure to the
  215  benefit of any private person.
  216         3. With respect to a deficit in an account:
  217         a. After accounting for the Citizens policyholder surcharge
  218  imposed under sub-subparagraph i., if the remaining projected
  219  deficit incurred in the coastal account in a particular calendar
  220  year:
  221         (I) Is not greater than 2 percent of the aggregate
  222  statewide direct written premium for the subject lines of
  223  business for the prior calendar year, the entire deficit shall
  224  be recovered through regular assessments of assessable insurers
  225  under paragraph (q) and assessable insureds.
  226         (II) Exceeds 2 percent of the aggregate statewide direct
  227  written premium for the subject lines of business for the prior
  228  calendar year, the corporation shall levy regular assessments on
  229  assessable insurers under paragraph (q) and on assessable
  230  insureds in an amount equal to the greater of 2 percent of the
  231  projected deficit or 2 percent of the aggregate statewide direct
  232  written premium for the subject lines of business for the prior
  233  calendar year. Any remaining projected deficit shall be
  234  recovered through emergency assessments under sub-subparagraph
  235  d.
  236         b. Each assessable insurer’s share of the amount being
  237  assessed under sub-subparagraph a. must be in the proportion
  238  that the assessable insurer’s direct written premium for the
  239  subject lines of business for the year preceding the assessment
  240  bears to the aggregate statewide direct written premium for the
  241  subject lines of business for that year. The assessment
  242  percentage applicable to each assessable insured is the ratio of
  243  the amount being assessed under sub-subparagraph a. to the
  244  aggregate statewide direct written premium for the subject lines
  245  of business for the prior year. Assessments levied by the
  246  corporation on assessable insurers under sub-subparagraph a.
  247  must be paid as required by the corporation’s plan of operation
  248  and paragraph (q). Assessments levied by the corporation on
  249  assessable insureds under sub-subparagraph a. shall be collected
  250  by the surplus lines agent at the time the surplus lines agent
  251  collects the surplus lines tax required by s. 626.932, and paid
  252  to the Florida Surplus Lines Service Office at the time the
  253  surplus lines agent pays the surplus lines tax to that office.
  254  Upon receipt of regular assessments from surplus lines agents,
  255  the Florida Surplus Lines Service Office shall transfer the
  256  assessments directly to the corporation as determined by the
  257  corporation.
  258         c. After accounting for the Citizens policyholder surcharge
  259  imposed under sub-subparagraph i., the remaining projected
  260  deficits in the personal lines account and in the commercial
  261  lines account in a particular calendar year shall be recovered
  262  through emergency assessments under sub-subparagraph d.
  263         d. Upon a determination by the board of governors that a
  264  projected deficit in an account exceeds the amount that is
  265  expected to be recovered through regular assessments under sub
  266  subparagraph a., plus the amount that is expected to be
  267  recovered through surcharges under sub-subparagraph i., the
  268  board, after verification by the office, shall levy emergency
  269  assessments for as many years as necessary to cover the
  270  deficits, to be collected by assessable insurers and the
  271  corporation and collected from assessable insureds upon issuance
  272  or renewal of policies for subject lines of business, excluding
  273  National Flood Insurance policies. The amount collected in a
  274  particular year must be a uniform percentage of that year’s
  275  direct written premium for subject lines of business and all
  276  accounts of the corporation, excluding National Flood Insurance
  277  Program policy premiums, as annually determined by the board and
  278  verified by the office. The office shall verify the arithmetic
  279  calculations involved in the board’s determination within 30
  280  days after receipt of the information on which the determination
  281  was based. The office shall notify assessable insurers and the
  282  Florida Surplus Lines Service Office of the date on which
  283  assessable insurers shall begin to collect and assessable
  284  insureds shall begin to pay such assessment. The date must be at
  285  least may be not less than 90 days after the date the
  286  corporation levies emergency assessments pursuant to this sub
  287  subparagraph. Notwithstanding any other provision of law, the
  288  corporation and each assessable insurer that writes subject
  289  lines of business shall collect emergency assessments from its
  290  policyholders without such obligation being affected by any
  291  credit, limitation, exemption, or deferment. Emergency
  292  assessments levied by the corporation on assessable insureds
  293  shall be collected by the surplus lines agent at the time the
  294  surplus lines agent collects the surplus lines tax required by
  295  s. 626.932 and paid to the Florida Surplus Lines Service Office
  296  at the time the surplus lines agent pays the surplus lines tax
  297  to that office. The emergency assessments collected shall be
  298  transferred directly to the corporation on a periodic basis as
  299  determined by the corporation and held by the corporation solely
  300  in the applicable account. The aggregate amount of emergency
  301  assessments levied for an account under this sub-subparagraph in
  302  any calendar year may be less than but may not exceed the
  303  greater of 10 percent of the amount needed to cover the deficit,
  304  plus interest, fees, commissions, required reserves, and other
  305  costs associated with financing the original deficit, or 10
  306  percent of the aggregate statewide direct written premium for
  307  subject lines of business and all accounts of the corporation
  308  for the prior year, plus interest, fees, commissions, required
  309  reserves, and other costs associated with financing the deficit.
  310         e. The corporation may pledge the proceeds of assessments,
  311  projected recoveries from the Florida Hurricane Catastrophe
  312  Fund, other insurance and reinsurance recoverables, policyholder
  313  surcharges and other surcharges, and other funds available to
  314  the corporation as the source of revenue for and to secure bonds
  315  issued under paragraph (q), bonds or other indebtedness issued
  316  under subparagraph (c)3., or lines of credit or other financing
  317  mechanisms issued or created under this subsection, or to retire
  318  any other debt incurred as a result of deficits or events giving
  319  rise to deficits, or in any other way that the board determines
  320  will efficiently recover such deficits. The purpose of the lines
  321  of credit or other financing mechanisms is to provide additional
  322  resources to assist the corporation in covering claims and
  323  expenses attributable to a catastrophe. As used in this
  324  subsection, the term “assessments” includes regular assessments
  325  under sub-subparagraph a. or subparagraph (q)1. and emergency
  326  assessments under sub-subparagraph d. Emergency assessments
  327  collected under sub-subparagraph d. are not part of an insurer’s
  328  rates, are not premium, and are not subject to premium tax,
  329  fees, or commissions; however, failure to pay the emergency
  330  assessment shall be treated as failure to pay premium. The
  331  emergency assessments under sub-subparagraph d. shall continue
  332  as long as any bonds issued or other indebtedness incurred with
  333  respect to a deficit for which the assessment was imposed remain
  334  outstanding, unless adequate provision has been made for the
  335  payment of such bonds or other indebtedness pursuant to the
  336  documents governing such bonds or indebtedness.
  337         f. As used in this subsection for purposes of any deficit
  338  incurred on or after January 25, 2007, the term “subject lines
  339  of business” means insurance written by assessable insurers or
  340  procured by assessable insureds for all property and casualty
  341  lines of business in this state, but not including workers’
  342  compensation or medical malpractice. As used in this sub
  343  subparagraph, the term “property and casualty lines of business”
  344  includes all lines of business identified on Form 2, Exhibit of
  345  Premiums and Losses, in the annual statement required of
  346  authorized insurers under s. 624.424 and any rule adopted under
  347  this section, except for those lines identified as accident and
  348  health insurance and except for policies written under the
  349  National Flood Insurance Program or the Federal Crop Insurance
  350  Program. For purposes of this sub-subparagraph, the term
  351  “workers’ compensation” includes both workers’ compensation
  352  insurance and excess workers’ compensation insurance.
  353         g. The Florida Surplus Lines Service Office shall determine
  354  annually the aggregate statewide written premium in subject
  355  lines of business procured by assessable insureds and report
  356  that information to the corporation in a form and at a time the
  357  corporation specifies to ensure that the corporation can meet
  358  the requirements of this subsection and the corporation’s
  359  financing obligations.
  360         h. The Florida Surplus Lines Service Office shall verify
  361  the proper application by surplus lines agents of assessment
  362  percentages for regular assessments and emergency assessments
  363  levied under this subparagraph on assessable insureds and assist
  364  the corporation in ensuring the accurate, timely collection and
  365  payment of assessments by surplus lines agents as required by
  366  the corporation.
  367         i. In 2008 or thereafter, Upon a determination by the board
  368  of governors that an account has a projected deficit, the board
  369  shall levy a Citizens policyholder surcharge against all
  370  policyholders of the corporation.
  371         (I) The surcharge shall be levied as a uniform percentage
  372  of the premium for the policy of up to 15 percent of such
  373  premium, which funds shall be used to offset the deficit.
  374         (II) The surcharge is payable upon cancellation or
  375  termination of the policy, upon renewal of the policy, or upon
  376  issuance of a new policy by the corporation within the first 12
  377  months after the date of the levy or the period of time
  378  necessary to fully collect the surcharge amount.
  379         (III) The corporation may not levy any regular assessments
  380  under paragraph (q) pursuant to sub-subparagraph a. or sub
  381  subparagraph b. with respect to a particular year’s deficit
  382  until the corporation has first levied the full amount of the
  383  surcharge authorized by this sub-subparagraph.
  384         (IV) The surcharge is not considered premium and is not
  385  subject to commissions, fees, or premium taxes. However, failure
  386  to pay the surcharge shall be treated as failure to pay premium.
  387         j. If the amount of any assessments or surcharges collected
  388  from corporation policyholders, assessable insurers or their
  389  policyholders, or assessable insureds exceeds the amount of the
  390  deficits, such excess amounts shall be remitted to and retained
  391  by the corporation in a reserve to be used by the corporation,
  392  as determined by the board of governors and approved by the
  393  office, to pay claims or reduce any past, present, or future
  394  plan-year deficits or to reduce outstanding debt.
  395         (e) The corporation is subject to s. 287.057 for the
  396  purchase of commodities and contractual services except as
  397  otherwise provided in this paragraph. Services provided by
  398  tradepersons or technical experts to assist a licensed adjuster
  399  in the evaluation of individual claims are not subject to the
  400  procurement requirements of this section. Additionally, the
  401  procurement of financial services providers and underwriters
  402  must be made pursuant to s. 627.3513. Contracts for goods or
  403  services valued at or more than $100,000 are subject to approval
  404  by the board.
  405         1. The corporation is an agency for purposes of s. 287.057,
  406  except that, for purposes of s. 287.057(22), the corporation is
  407  an eligible user.
  408         a. The authority of the Department of Management Services
  409  and the Chief Financial Officer under s. 287.057 extends to the
  410  corporation as if the corporation were an agency.
  411         b. The executive director of the corporation is the agency
  412  head under s. 287.057, except for resolution of bid protests for
  413  which the board would serve as the agency head.
  414         2. The corporation must provide notice of a decision or
  415  intended decision concerning a solicitation, contract award, or
  416  exceptional purchase by electronic posting. Such notice must
  417  contain the following statement: “Failure to file a protest
  418  within the time prescribed in this section constitutes a waiver
  419  of proceedings.”
  420         a. A person adversely affected by the corporation’s
  421  decision or intended decision to award a contract pursuant to s.
  422  287.057(1) or (3)(c) who elects to challenge the decision must
  423  file a written notice of protest with the executive director of
  424  the corporation within 72 hours after the corporation posts a
  425  notice of its decision or intended decision. For a protest of
  426  the terms, conditions, and specifications contained in a
  427  solicitation, including any provisions governing the methods for
  428  ranking bids, proposals, replies, awarding contracts, reserving
  429  rights of further negotiation, or modifying or amending any
  430  contract, the notice of protest must be filed in writing within
  431  72 hours after the posting of the solicitation. Saturdays,
  432  Sundays, and state holidays are excluded in the computation of
  433  the 72-hour time period.
  434         b. A formal written protest must be filed within 10 days
  435  after the date the notice of protest is filed. The formal
  436  written protest must state with particularity the facts and law
  437  upon which the protest is based. Upon receipt of a formal
  438  written protest that has been timely filed, the corporation must
  439  stop the solicitation or contract award process until the
  440  subject of the protest is resolved by final board action unless
  441  the executive director sets forth in writing particular facts
  442  and circumstances that require the continuance of the
  443  solicitation or contract award process without delay in order to
  444  avoid an immediate and serious danger to the public health,
  445  safety, or welfare.
  446         (I) The corporation must provide an opportunity to resolve
  447  the protest by mutual agreement between the parties within 7
  448  business days after receipt of the formal written protest.
  449         (II) If the subject of a protest is not resolved by mutual
  450  agreement within 7 business days, the corporation’s board must
  451  transmit the protest to the Division of Administrative Hearings
  452  and contract with the division to conduct a hearing to determine
  453  the merits of the protest and to issue a recommended order place
  454  the protest on the agenda and resolve it at its next regularly
  455  scheduled meeting. The contract must provide for the corporation
  456  to reimburse the division for any costs incurred by the division
  457  for court reporters, transcript preparation, travel, facility
  458  rental, and other customary hearing costs in the manner set
  459  forth in s. 120.65(9). The division has jurisdiction to
  460  determine the facts and law concerning the protest and to issue
  461  a recommended order. The division’s rules and procedures apply
  462  to these proceedings; the division’s applicable bond
  463  requirements do not apply. The protest must be heard by the
  464  division board at a publicly noticed meeting in accordance with
  465  procedures established by the division board.
  466         c. In a protest of an invitation-to-bid or request-for
  467  proposals procurement, submissions made after the bid or
  468  proposal opening which amend or supplement the bid or proposal
  469  may not be considered. In protesting an invitation-to-negotiate
  470  procurement, submissions made after the corporation announces
  471  its intent to award a contract, reject all replies, or withdraw
  472  the solicitation that amends or supplements the reply may not be
  473  considered. Unless otherwise provided by law, the burden of
  474  proof rests with the party protesting the corporation’s action.
  475  In a competitive-procurement protest, other than a rejection of
  476  all bids, proposals, or replies, the administrative law judge
  477  corporation’s board must conduct a de novo proceeding to
  478  determine whether the corporation’s proposed action is contrary
  479  to the corporation’s governing statutes, the corporation’s rules
  480  or policies, or the solicitation specifications. The standard of
  481  proof for the proceeding is whether the corporation’s action was
  482  clearly erroneous, contrary to competition, arbitrary, or
  483  capricious. In any bid-protest proceeding contesting an intended
  484  corporation action to reject all bids, proposals, or replies,
  485  the standard of review by the board is whether the corporation’s
  486  intended action is illegal, arbitrary, dishonest, or fraudulent.
  487         d. Failure to file a notice of protest or failure to file a
  488  formal written protest constitutes a waiver of proceedings.
  489         3. The board, acting as agency head, shall consider the
  490  recommended order of an administrative law judge in a public
  491  meeting and take final action on the protest. Contract actions
  492  and decisions by the board under this paragraph are final. Any
  493  further legal remedy lies with the First District Court of
  494  Appeal must be made in the Circuit Court of Leon County.
  495         (hh) The corporation shall must prepare a report for each
  496  calendar year outlining both the statewide average and county
  497  specific details of the loss ratio attributable to losses that
  498  are not catastrophic losses for residential coverage provided by
  499  the corporation, which information must be presented to the
  500  office and available for public inspection on the Internet
  501  website of the corporation by March 1 January 15th of the
  502  following calendar year.
  503         Section 4. Section 627.3519, Florida Statutes, is repealed.
  504         Section 5. Section 627.35191, Florida Statutes, is amended
  505  to read:
  506         627.35191 Required reports Annual report of aggregate net
  507  probable maximum losses, financing options, and potential
  508  assessments.—
  509         (1) By No later than February 1 of each year, the Florida
  510  Hurricane Catastrophe Fund and Citizens Property Insurance
  511  Corporation shall each submit a report to the Legislature and
  512  the Financial Services Commission identifying their respective
  513  aggregate net probable maximum losses, financing options, and
  514  potential assessments. The report issued by the fund and the
  515  corporation must include their respective 50-year, 100-year, and
  516  250-year probable maximum losses; analysis of all reasonable
  517  financing strategies for each such probable maximum loss,
  518  including the amount and term of debt instruments; specification
  519  of the percentage assessments that would be needed to support
  520  each of the financing strategies; and calculations of the
  521  aggregate assessment burden on Florida property and casualty
  522  policyholders for each of the probable maximum losses.
  523         (2) In May of each year, Citizens Property Insurance
  524  Corporation shall also provide to the Legislature and the
  525  Financial Services Commission a statement of the estimated
  526  borrowing capacity of the corporation for the next 12-month
  527  period, the estimated claims-paying capacity of the corporation,
  528  and the corporation’s estimated balance as of December 31 of the
  529  current calendar year. Such estimates must take into account
  530  that the corporation, the Florida Hurricane Catastrophe Fund,
  531  and the Florida Insurance Guaranty Association may all be
  532  concurrently issuing debt instruments following a catastrophic
  533  event.
  534         Section 6. Present subsections (6) through (8) of section
  535  627.711, Florida Statues, are redesignated as subsections (7)
  536  through (9), respectively, a new subsection (6) is added to that
  537  section, and present subsection (8) of that section is amended,
  538  to read:
  539         627.711 Notice of premium discounts for hurricane loss
  540  mitigation; uniform mitigation verification inspection form.—
  541         (6)(a) An authorized mitigation inspector may not directly
  542  or indirectly offer or deliver any compensation, inducement, or
  543  reward to an insurance agency, insurance agent, customer
  544  representative, or an employee of an insurance agency for the
  545  referral of the owner of the inspected property to the inspector
  546  or the inspection company. Section 455.227(1)(k) applies to
  547  applicable licensees in violation of this paragraph.
  548         (b) An insurance agency, insurance agent, customer
  549  representative, or an employee of an insurance agency may not
  550  directly or indirectly receive or accept any compensation,
  551  inducement, or reward from an authorized mitigation inspector
  552  for the referral of the owner of the inspected property to the
  553  inspector or the inspection company. Sections 626.621(2) and
  554  626.6215(5)(d) apply to a violation of this paragraph.
  555         (9)(8) At its expense, the insurer may require that a
  556  uniform mitigation verification form provided by a policyholder,
  557  a policyholder’s agent, or an authorized mitigation inspector or
  558  inspection company be independently verified by an inspector, an
  559  inspection company, or an independent third-party quality
  560  assurance provider that which possesses a quality assurance
  561  program before accepting the uniform mitigation verification
  562  form as valid. At its option, the insurer may exempt from
  563  independent verification a uniform mitigation verification form
  564  completed by an authorized mitigation inspector or inspection
  565  company that possesses a quality assurance program approved by
  566  the insurer. A uniform mitigation verification form provided by
  567  a policyholder, a policyholder’s agent, or an authorized
  568  mitigation inspector or inspection company to Citizens Property
  569  Insurance Corporation is not subject to independent verification
  570  and the property is not subject to reinspection by the
  571  corporation, absent material changes to the structure during the
  572  term stated on the form, if the form was signed by an authorized
  573  mitigation inspector and submitted to, reviewed by, and verified
  574  by a quality assurance program approved by the corporation
  575  before submission of the form to the corporation.
  576         Section 7. Paragraph (d) is added to subsection (7) of
  577  section 817.234, Florida Statutes, to read:
  578         817.234 False and fraudulent insurance claims.—
  579         (7)
  580         (d) A contractor, or a person acting on behalf of a
  581  contractor, may not knowingly or willfully and with intent to
  582  injure, defraud, or deceive, pay, waive, or rebate all or part
  583  of an insurance deductible applicable to payment to the
  584  contractor, or a person acting on behalf of a contractor, for
  585  repairs to property covered by a property insurance policy. A
  586  person who violates this paragraph commits a third degree
  587  felony, punishable as provided in s. 775.082, s. 775.083, or s.
  588  775.084.
  589         Section 8. Except as otherwise expressly provided in this
  590  act, this act shall take effect July 1, 2014.

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