HB 943 — CS/CS/HB 943: Citizens Property Insurance Corporation

and the total cost of such coverage is not more than 20 percent greater than the total cost of insurance coverage from the corporation, the corporation may not issue or renew coverage unless it imposes an Page 43 of 2923 CODING:

hb943-02-c2hb943-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 943 2026 corporation may not issue or renew coverage unless it imposes a premium equalization adjustment on such policy equal to the amount by which the total cost of insurance coverage offered by the approved surplus lines clearinghouse insurer exceeds the total cost of insurance coverage from the corporation.

If the total cost of insurance from the approved surplus lines clearinghouse insurer does not exceed the total cost of corporation coverage, the corporation may not impose the premium equalization adjustment.

627.3518(6)(c)2.,627.3518(5)(c)2., the lowest offered total cost of insurance coverage applies for purposes of this paragraph.

AnA offerpremium submittedequalization byadjustment aapplied surpluspursuant linesto clearinghousethis insurerparagraph whichexpires isat declined by the applicantend orof policyholder, expires, or is not accepted by the applicantpolicy orterm. policyholder for any reason does not relieve the corporation from its obligation, if any, to impose an equalization adjustment as set forth in this paragraph.

An equalization adjustment applied pursuant to this paragraph expires at the end of the policy term.

For the purposes of this paragraph, the term "equalization adjustment" means a temporary policy-term-only adjustment applied solely for purposes of evaluating and comparing offers of coverage on a comparable basis under this section.

An equalization adjustment does not constitute a rate, premium, surcharge, or filing;

does not modify or affect any rate, rating plan, rule, or filing Page 5 of 29 CODING:

Words stricken are deletions;

words underlined are additions.

hb943-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 943 2026 approved for the corporation;

and expires by operation of law at the end of the applicable policy term.

(a) "Approved surplus lines clearinghouse insurer" means an eligible surplus lines insurer that has a financial strength ratingPage of4 "A-" or higher and a financial size category of A-VII23 orCODING: higher from A.M.

Best Company which the clearinghouse administrator recommends for participation in the program and which the office verifies meets the requirements for participation in the program within 10 business days after the commercial lines clearinghouse administrator's recommendation.

If the office does not complete such verification within the 10- business-day period, the insurer shall be deemed verified for purposes of participation in the program.

(b) "Authorized insurer" means an insurer authorized to act as an insurer by a subsisting certificate of authority issued to the insurer by the office.

(c) "Commercial lines clearinghouse administrator" means the individual or entity employed or otherwise contracted by the Page 6 of 29 CODING:

hb943-02-c2hb943-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 943 2026 corporationrating toof provide"A-" administrative or professionalhigher servicesand toa implementfinancial thesize commercialcategory linesof clearinghouseA-VII requiredor pursuanthigher tofrom subparagraphA.M. (2)(b)1.

Best Company which the clearinghouse administrator recommends for participation in the program and which the office verifies meets the requirements for participation in the program within 5 business days after the commercial lines clearinghouse administrator's recommendation.

(b) "Commercial lines clearinghouse administrator" means the individual or entity employed or otherwise contracted by the corporation to provide administrative or professional services to implement the commercial lines clearinghouse required pursuant to subparagraph (2)(b)1.

(d)(c)(a) "Comparable"Corporation" coverage" means coverageCitizens thatProperty hasInsurance materialCorporation. terms and conditions that are substantially equivalent to or better than coverage from the corporation as to all aspects of such coverage, as determined by the corporation through the clearinghouse process and applicable program standards.

(e)(d)(b) "Corporation""Exclusive agent" means Citizensany Propertylicensed Insuranceinsurance Corporation.agent that has, by contract, agreed to act exclusively for one company or group of affiliated insurance companies and is disallowed by the provisions of that contract to directly write for any other unaffiliated insurer absent express consent from the company or group of affiliated insurance companies.

(f)(b)(e)(c) "Exclusive"Independent agent" means any licensed insurance agent thatnot has,described byin contract,paragraph agreed(d) to(b). act exclusively for one company or group of affiliated insurance companies and is disallowed by the provisions of that contract to directly write for any other unaffiliated insurer absent express consent from the company or group of affiliated insurance companies.

(g)(c)(f) "Independent"Primary agent"residence" meanshas anythe licensedsame insurancemeaning agentas not described in paragraphs. (f) (b).

(h) "Primary residence" has the same meaning as in s.

(i)(d)(g)(d) "Program" means the clearinghouse created under thisPage section,5 consisting of the23 personalCODING: lines clearinghouse and the commercial lines clearinghouse.

(j) "Surplus lines agent" means an insurance agent Page 7 of 29 CODING:

hb943-02-c2hb943-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 943 2026 licensedthis pursuantsection, toconsisting s.of the personal lines clearinghouse and the commercial lines clearinghouse.

(h) "Surplus lines agent" means an insurance agent licensed pursuant to s.

The corporation shall amendimplement its plan of operation and implement, on or before January 1, 2027, a commercial lines clearinghouse in order to enhance access to offers of coverage from approved surplus lines clearinghouse insurers for new applicants for commercial residential coverage and commercial nonresidential coverage and existing commercial residential and commercial nonresidential policyholders of the corporation.

To facilitate the diversion of ineligible applicants and existing policyholders from the corporation to authorized insurers, the corporation shall implement,also ondevelop orand beforeimplement January 1, 2027, a separate commercial lines clearinghouse toon confirmor eligibilitybefore forJanuary coverage1, from the corporation and to enhance access to offers of coverage from authorized insurers for new applicants for commercial residential and commercial Page 86 of 2923 CODING:

hb943-02-c2hb943-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 943 2026 2028, to confirm eligibility with the corporation and to enhance access to offers of such coverage from authorized insurers for new applicants for commercial residential or commercial nonresidential coverage and existing commercial residential and commercial nonresidential policyholders of the corporation shall also develop appropriate procedures for facilitating the diversion of ineligible applicants and existing policyholders for commercial residential coverage into the private insurance market and shall report such procedures to the President of the Senate and the Speaker of the House of Representatives by January 1, 2014.

(a) BeforeMay bindingrequire orall renewingnew applications for personal lines coverage, and all personal lines policies due for renewal, to be submitted for coverage byto the corporation:program in order to facilitate obtaining an offer of coverage from an authorized insurer or, if the risk is a commercial risk, shall require all new Page 7 of 23 CODING:

1.

May require all new applications for personal lines coverage, and all personal lines policies due for renewal, to be submitted for coverage to the program in order to facilitate obtaining an offer of coverage from an authorized insurer.

2.

May, if the corporation establishes a clearinghouse Page 9 of 29 CODING:

hb943-02-c2hb943-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 943 2026 pursuant to subparagraph (2)b.2., require all new applications for commercial lines coverage, and all commercial lines policies due for renewal, to be initially submitted for coverage tothrough the commercial clearinghouse as a single point of intake for both the corporation and the program in order to facilitate obtaining an offer of coverage from an authorizedapproved insurer.surplus lines clearinghouse insurer, before binding or renewing coverage by the corporation.

3.

Shall require all new applications for commercial lines coverage, and all commercial lines policies due for renewal, to be initially submitted for coverage through the commercial lines clearinghouse as a single point of intake for both the corporation and the program in order to facilitate obtaining an offer of coverage from an approved surplus lines clearinghouse insurer before binding or renewing coverage by the corporation.

(c)(c)(b) May employ or otherwise contract with individuals or other entities for appropriate administrative or professional services to effectuate the plan within the corporation in accordance with the applicable purchasing requirements under s.

287.057.287.057(3)(c).

(d)(c) May enter into contracts with any authorized insurer and any approved surplus lines clearinghouse insurer to Pageparticipate 10in ofthe 29program CODING:and accept an appointment by such insurer.

Words stricken are deletions;

words underlined are additions.

hb943-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 943 2026 participate in the program and accept an appointment by such insurer.

Insurers and agents participating in the program are not required to pay a fee to offset or partially offset the cost of the program or usePage the8 program for renewal of policies23 initiallyCODING: written through the clearinghouse.

Notwithstanding this paragraph, any commercial lines clearinghouse administrator may charge approved surplus lines clearinghouse insurers participating in the program reasonable transaction, technology, administration, and other similar fees.

All fees charged by the commercial lines clearinghouse administrator must be fair and reasonable.

(f) Shall include separate components for authorized insurers and approved surplus lines insurers with respect to the commercial lines clearinghouse, each of which shall be independently operated and independently funded.

(g) In the event that there is insufficient commercial support for any component of the commercial lines clearinghouse, shall be relieved of its obligations with respect to that component for which there is insufficient commercial support.

(h) Shall provide or permit access to shared or hosted technology, systems, interfaces, or applications programming interfaces to the commercial lines clearinghouse administrator, provided that each retains operational control over and responsibility for its own technology, systems, interfaces, or Page 11 of 29 CODING:

hb943-02-c2hb943-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 943 2026 applications.use the program for renewal of policies initially written through the clearinghouse.

Notwithstanding paragraphthis (e),paragraph, theany corporationcommercial maylines notclearinghouse provideadministrator fundsmay tocharge supportapproved orsurplus offset the infrastructure or operations of the commercial lines clearinghouse orinsurers anyparticipating componentin thereof,the butprogram shallreasonable fundtransaction, and operate its own technology, systems,administration, interfaces, or applications as necessary for the corporation to access and interfaceother withsimilar thefees. commercial lines clearinghouse.

(i)(e)(f)(e) May develop an enhanced application that includes information to assist private insurers in determining whether to make an offer of coverage through the program.

(j)(f)(g)(f) For personal lines residential risks, may require that, before approving all new applications for coverage by the corporation, that every application be subject to a period of 2 business days when any insurer participating in the program may select the application for coverage.

(k)(h) Shall, in creating the commercial lines clearinghouse, establish criteria to determine the capabilities necessary for Pagethe 12commercial oflines 29clearinghouse CODING:administrator.

For Page 9 of 23 CODING:

hb943-02-c2hb943-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 943 2026 facilitating offers of surplus lines coverage, such criteria must include confirmed expertise in the surplus lines market, at least 5 years of publicly available audited financial statements, the ability to facilitate all approved surplus lines clearinghouse insurers to participate in the commercial lines clearinghouse administrator.on terms established by the corporation, and other criteria that the corporation determines necessary to effectively establish, administer, and manage offers of surplus lines coverage through the commercial lines clearinghouse.

For(i) facilitatingShall offersselect ofa surpluscommercial lines coverage,clearinghouse suchadministrator criteriawithin must90 includedays confirmedafter expertisethe ineffective thedate surplusof linesthis market;act.

at(j) leastMay 5allow yearsthe commercial lines clearinghouse administrator to establish procedures and account clearance requirements the commercial lines clearinghouse administrator deems necessary to ensure an orderly process for offers of publiclycoverage availableto auditedbe financialprovided statements;by approved surplus lines clearinghouse insurers participating in the commercial lines clearinghouse and to avoid multiple offers of coverage from the same insurer for the same risk.

the(k) abilityMust submit to facilitatethe allcommercial approved surplus lines clearinghouse insurersadministrator toits participatecoverage interms and conditions, deductible structures, and its unalterable indicated total cost of insurance coverage, which must include, but is not limited to, the commercialpremium, linesfees, clearinghouse;surcharges, and applicable taxes for the Page 10 of 23 CODING:

other criteria that the corporation determines necessary to effectively establish, administer, manage offers of surplus lines coverage through the commercial lines clearinghouse;

and the ability to collect and remit, either directly or through a surplus lines agent, all taxes pursuant to s.

626.932 and service fees pursuant to s.

626.9325.

(l) Shall select a commercial lines clearinghouse administrator within 90 days after the effective date of this act.

(m) May allow the commercial lines clearinghouse administrator to establish procedures and account clearance requirements the commercial lines clearinghouse administrator deems necessary to ensure an orderly process for offers of coverage to be provided by authorized insurers or approved surplus lines clearinghouse insurers participating in the commercial lines clearinghouse and to avoid multiple offers of coverage from the same insurer for the same risk.

(n) Must submit to the commercial lines clearinghouse administrator its coverage terms and conditions, deductible Page 13 of 29 CODING:

hb943-02-c2hb943-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 943 2026 structures, and unalterable indicated total cost of insurance coverage, which must include, but is not limited to, the premium, fees, surcharges, and applicable taxes for the subject risk before any approved surplus lines clearinghouse insurer is provided a submission for coverage pursuant to the program by any applicant for new coverage from the corporation or any policyholder of the corporation.

UponThe completion of such submission, the commercial lines clearinghouse administrator shall provide the corporation's unalterable indicated coverage terms and conditions and deductible structures, but may not provide the indicated total cost of corporation insurance coverage, to the approved surplus lines clearinghouse insurers participating in the program.

The commercial lines clearinghouse administrator shall determine, through established procedures, whether a submission is complete before release, which submission requires, at a minimum, a validated application from the agent and the corporation's unalterable indicated total cost of insurance, coverage terms and conditions, and deductible structures.

627.351(6)(oo) and subparagraph (6)(c)2.(5)(c)2.

The corporation may not bind or otherwise communicate, indicate, or make an offer of coverage to an applicant or policyholder, or its agent, Pageor 14otherwise ofaccept 29coverage CODING:until 5 business days have elapsed from the date that it provided its unalterable indication to the commercial lines clearinghouse administrator unless the time limit is waived in writing.

Words stricken are deletions;

words underlined are additions.

hb943-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 943 2026 or otherwise accept coverage until the commercial lines clearinghouse administrator has determined that a complete submission has been made, affirmatively releases one or more offers of coverage from approved surplus lines clearinghouse insurers, or affirms that no clearinghouse insurer offer of coverage has been made, and at least 5 business days have elapsed from the date of such release, unless waived in writing.

The validation period described in this paragraph applies regardless of any proposed effective date, renewal date, or expiration date of the policy andPage may11 notof be23 shortenedCODING: or bypassed based on timing considerations relating to binding or renewal.

(4) The corporation may share risk exposure and policy information with the commercial lines clearinghouse administrator, and, through the commercial lines clearinghouse, the commercial lines clearinghouse administrator may use such information as necessary to operate and administer the commercial lines clearinghouse and ensure the orderly, timely, and transparent assessment of risks by insurers participating in the commercial lines clearinghouse.

(5) Any authorized insurer may participate in the program;

however, participation is not mandatory for any insurer.

Page 15 of 29 CODING:

hb943-02-c2hb943-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 943 2026 Approvedand surplus lines clearinghouse insurers may participatenot inbe theshortened commercialor linesbypassed clearinghousebased buton maytiming notconsiderations participaterelating into thebinding personalor linesrenewal. clearinghouse;

(4) Any authorized insurer may participate in the program;

however, participation is not mandatory for any insurer.

Approved surplus lines clearinghouse insurers may participate in the commercial lines clearinghouse but may not participate in the personal lines clearinghouse;

(b) Must enter into a limited agency agreement with each agent or surplus lines agent that is not appointed in accordance with paragraph (a) and whose direct or indirect customer is underwrittenPage and12 boundof through23 theCODING: program.

In addition, a surplus lines agent that enters into a limited agency or broker agreement with an approved surplus lines clearinghouse insurer making an offer of coverage through the program must also enter Page 16 of 29 CODING:

hb943-02-c2hb943-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 943 2026 into a limited agency or broker agreement with each producing agent whose customer is underwritten and bound through the program.

In addition, a surplus lines agent that enters into a limited agency or broker agreement with an approved surplus lines clearinghouse insurer making an offer of coverage through the program must also enter into a limited agency or broker agreement with each producing agent whose customer is underwritten and bound through the program.

In addition, a surplus lines agent that enters into a standardlimited agency or broker agreement with an approved surplus lines clearinghouse insurer making an offer of coverage through the program must also enter into a limitedstandard agency or broker agreement with each producing agent whose customer is underwritten and bound through the program.

(e) May participate through their designatedsingle-designated single- designated managing general agent,agent managing general underwriter, or broker,broker or surplus lines agent;

however, the provisions of paragraph (7)(a) (6)(a) regarding ownership, control, and use of the expirations continue to apply.

(f) For authorized insurers, must pay to the producing agent a commission equal to that paid by the corporation or the usualPage and13 customary commission paid by the insurer for that line of business,23 whicheverCODING: is greater.

(g) For approved surplus lines clearinghouse insurers, Page 17 of 29 CODING:

hb943-02-c2hb943-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 943 2026 whenusual coverageand iscustomary placed through the clearinghouse with an approved surplus lines clearinghouse insurer, must pay a total commission orpaid equivalentby compensationthe oninsurer grossfor writtenthat premium,line exclusive of fees,business, surcharges,whichever andis taxes,greater. to the surplus lines agent, managing general agent, or managing general underwriter placing the risk.

(g) For approved surplus lines clearinghouse insurers, when coverage is placed through the clearinghouse with an approved surplus lines clearinghouse insurer, must pay a total commission or equivalent compensation on gross written premium, exclusive of fees, surcharges, and taxes, to the surplus lines agent, managing general agent, or managing general underwriter placing the risk.

(6)(a)(5)(5)(a) Notwithstanding s.

627.3517, any applicant for new personal lines coverage from the corporation is not eligible for coverage from the corporation if provided an offer of comparable coverage from an authorized insurer through the program at a premiumPage that14 is at or below the eligibility threshold for applicants for new coverage of a23 primaryCODING: residence established in s.

627.351(6)(c)5.a., or for applicants for new Page 18 of 29 CODING:

hb943-02-c2hb943-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 943 2026 coveragepremium ofthat ais riskat thator isbelow notthe eligibility threshold for applicants for new coverage of a primary residence established in s.

627.351(6)(c)5.a., or for applicants for new coverage of a risk that is not a primary residence established in s.

In the event an offer of coverage for a personal lines risk is received from an authorized insurer at renewal through the program, and the premium offered exceeds the eligibility thresholdPage for15 primary residences of policyholders23 ofCODING: the corporation established in s.

627.351(6)(c)5.a., or exceeds the eligibility threshold for risks that are not primary residences Page 19 of 29 CODING:

hb943-02-c2hb943-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 943 2026 threshold for primary residences of policyholders of the corporation established in s.

627.351(6)(c)5.a., or exceeds the eligibility threshold for risks that are not primary residences of policyholders of the corporation established in s.

(b) Any applicant for new commercial lines residential coverage from the corporation is not eligible for coverage from the corporation if provided an offer of comparable coverage from the corporation as to all aspects of such coverage from an authorized insurer through the program at a premium that is at or below the eligibility threshold for applicants for new coverage established in s.

TheWhenever determination of whether an offer of comparable coverage fromfor ana authorizedcommercial insurerlines throughresidential therisk program is atreceived orfor belowa thepolicyholder eligibility threshold must be made before the submission of the corporation'scorporation coverageat termsrenewal andfrom conditions,an deductibleauthorized structures,insurer andthrough unalterablethe indicatedprogram totalwhich cost of insurance is providedat toor below the commercialeligibility linesthreshold clearinghousein administrator.s.

Whenever an offer of comparable coverage from the corporation as to all aspects of such coverage for a commercial lines residential risk is received for a policyholder of the corporation at renewal from an authorized insurer through the Page 20 of 29 CODING:

Words stricken are deletions;

words underlined are additions.

hb943-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 943 2026 program which is at or below the eligibility threshold in s.

627.351(6)(c)5.c.,Page the16 applicantof or23 insuredCODING: may elect to accept such coverage or may elect to accept or continue coverage with the corporation.

Words stricken are deletions;

words underlined are additions.

hb943-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB 943 2026 627.351(6)(c)5.c., the applicant or insured may elect to accept such coverage or may elect to accept or continue coverage with the corporation.

The Pageapplicant 21or ofpolicyholder 29receiving CODING:an offer from an approved surplus lines clearinghouse insurer may elect to accept such coverage or may elect to accept or continue coverage with the corporation.

2.

Any applicant for new commercial lines residential coverage or commercial lines nonresidential coverage from the Page 17 of 23 CODING:

hb943-02-c2hb943-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 943 2026 corporation and any policyholder of the corporation, when such applicant or corporation policyholder receivingis anoffered offercommercial fromlines residential or commercial lines nonresidential coverage by an approved surplus lines insurer pursuant to the program and such offered coverage has material terms and conditions that are substantially equivalent to or better than coverage from the corporation as to all aspects of such coverage, as determined by the corporation through the clearinghouse insurerprocess and applicable program standards, and the total cost of such insurance coverage is not more than 20 percent greater than the total cost of insurance coverage from the corporation, may elect to accept such coverage from the approved surplus lines clearinghouse insurer or may elect to accept or continue coverage with the corporation.corporation, but, if electing corporation coverage, such applicant or policyholder must pay a premium for corporation coverage that is subject to s.

2.

Any applicant for new commercial lines residential coverage or commercial lines nonresidential coverage from the corporation and any policyholder of the corporation, when such applicant or corporation policyholder is offered commercial lines residential or commercial lines nonresidential coverage by an approved surplus lines insurer pursuant to the program and such offered coverage is comparable coverage, and the total cost of such insurance coverage is not more than 20 percent greater than the total cost of insurance coverage from the corporation, may elect to accept such coverage from the approved surplus lines clearinghouse insurer or may elect to accept or continue coverage with the corporation, but, if electing corporation coverage, such applicant or policyholder must pay the total cost of insurance for corporation coverage that is subject to s.

(7)(6)4. Independent insurance agents submitting new applications for coverage or that are the agent of record on a renewal policy submitted to the program:

PageAny 22policyholder seeking coverage from the personal lines clearinghouse shall be offered coverage that has material terms and conditions that are substantially equivalent to or better than coverage from the corporation as to all aspects of 29such CODING:coverage.

(6) Independent insurance agents submitting new Page 18 of 23 CODING:

hb943-02-c2hb943-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 943 2026 (a)applications Arefor grantedcoverage andor mustthat maintainare ownership and the exclusiveagent use of expirations,record records,on ora otherrenewal writtenpolicy orsubmitted electronic information directly related to such applications or renewals written through the corporationprogram: or through an insurer participating in the program, notwithstanding s.

(a) Are granted and must maintain ownership and the exclusive use of expirations, records, or other written or electronic information directly related to such applications or renewals written through the corporation or through an insurer participating in the program, notwithstanding s.

Applicants ineligible for coverage in accordance with subsection Page 2319 of 2923 CODING:

hb943-02-c2hb943-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 943 2026 (6)Applicants ineligible for coverage in accordance with subsection (5) remain ineligible if their independent agent is unwilling or unable to enter into a standard or limited agency agreement with an insurer participating in the program.

(8)(7)(7) Exclusive agents submitting new applications for coverage or that are the agent of record on a renewal policy submitted to the program:

(c) Must only facilitate the placement of an offer of coverage from an insurer whose limited servicing agreement is approvedPage by20 thatof exclusive23 agent'sCODING: exclusive insurer.

(d) May enter into a limited servicing agreement with the Page 24 of 29 CODING:

hb943-02-c2hb943-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 943 2026 insurerapproved makingby anthat offer of coverage, and only after the exclusive agent's insurerexclusive hasinsurer. approved the limited servicing agreement terms.

(d) May enter into a limited servicing agreement with the insurer making an offer of coverage, and only after the exclusive agent's insurer has approved the limited servicing agreement terms.

Applicants ineligible for coverage in accordance with subsection (6) (5) remain ineligible if their exclusive agent is unwilling or unable to enter into a standard or limited agency agreement with an insurer making an offer of coverage to that applicant.

(9)(8)(8) Submission of an application for coverage by the corporation to the program does not constitute the binding of coverage by the corporation, and failure of the program to obtain an offer of coverage by an insurer may not be considered acceptance of coverage of the risk by the corporation.

(10)(9)(9) The 45-day notice of nonrenewal requirement set forth in s.

(11)(10)(11) Proprietary business information provided to the corporation's clearinghouse by insurers with respect to identifying and selecting risks for an offer of coverage is Page 2521 of 2923 CODING:

hb943-02-c2hb943-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 943 2026 corporation's clearinghouse by insurers with respect to identifying and selecting risks for an offer of coverage is confidential and exempt from s.

Proprietary business information may be found in underwriting criteria or instructions which are used to identify and select risks through the program for an offer of coverage and are Page 2622 of 2923 CODING:

hb943-02-c2hb943-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 943 2026 criteria or instructions which are used to identify and select risks through the program for an offer of coverage and are shared with the clearinghouse to facilitate the shopping of risks with the insurer.

(12) To promote actuarial soundness, program integrity, and mitigation of solvency or assessment risk to the corporation, the office may review operational processes related to the program.

Such review may include, but is not limited to, all of the following:

(a) Comparable coverage determinations upon complaint to the office by or on behalf of a policy applicant.

(b) Verification of the financial strength of approved surplus lines clearinghouse insurers participating in the program.

(c) The reasonableness of fees charged by the commercial lines clearinghouse administrator.

(d) The operational processes used by the commercial lines Page 27 of 29 CODING:

Words stricken are deletions;

words underlined are additions.

hb943-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 943 2026 clearinghouse administrator to determine whether an offer of coverage from an insurer participating in the program precludes coverage from the corporation or requires an equalization adjustment by the corporation.

(e) The potential for material adverse impact to the corporation's surplus, solvency, or assessment exposure.

(13)(a) If, after a review under subsection (12), the office determines that program processes are creating a material risk to the solvency of the corporation, the office shall notify the corporation and submit written recommendations to the commission.

(b) Upon approval by the commission, the corporation may temporarily implement recommendations made by the office to address the solvency risk.

Such recommendations may include, but are not limited to, all of the following:

1.

Temporary suspension of the equalization adjustment authorized under s.

627.351(6)(oo).

2.

Temporary exclusion of one or more participating insurers from the program.

3.

Temporary modification of program procedural timelines.

4.

If exigent circumstances exist, temporary suspension of the requirement that any applicant for new commercial residential coverage or commercial nonresidential coverage from the corporation and any policyholder of the corporation submit applications for coverage through the commercial lines Page 28 of 29 CODING:

Words stricken are deletions;

words underlined are additions.

hb943-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 943 2026 clearinghouse.

(14) This section does not authorize rebates or any activity that would violate part IX of chapter 626.

The corporation and the commercial lines clearinghouse administrator shall implement procedures to ensure that participating agents and insurers are not induced to violate part IX of chapter 626.

The office may review such compliance procedures solely for the purpose of submitting recommendations to the commission under subsection (13).

The Division of Law Revision is directed to replace the phrase "the effective date of this act" wherever it occurs in this act with the date this act becomes a law.

Section 4.

Page 2923 of 2923 CODING:

hb943-02-c2hb943-01-c1