SB 1028 — Citizens Property Insurance 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.

The total cost of insurance coverage includes, but is not limited to, the premium, fees, surcharges, andPage applicable3 taxes.of 20 CODING:

An offer submitted by a surplus lines clearinghouse insurer which is declined by the applicant or policyholder, expires, or is not accepted by the applicant or policyholder for any reason does not relieve the corporation from its obligation, if any, to impose an equalization adjustment as set forth in Page 4 of 25 CODING:

Florida Senate - 2026 CS for CS for SB 1028 594-02806-26597-01925-26 20261028c220261028c1 thisand paragraph.applicable taxes.

AnA premium 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 approved for the corporation;

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

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 105 business days after the commercial lines clearinghouse administrator’s recommendation.

If(b) “Commercial lines clearinghouse administrator” means the officeindividual doesor notentity completeemployed suchor verificationotherwise withincontracted by the 10-corporation business-dayto period,provide theadministrative insureror shallprofessional beservices deemedto verifiedimplement forthe purposescommercial oflines participationclearinghouse inrequired thepursuant program.to subparagraph (2)(b)1.

(b) “Authorized insurer” means an insurer authorized to act Page 5 of 25 CODING:

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Florida Senate - 2026 CS for CS for SB 1028 594-02806-26 20261028c2 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 corporation to provide administrative or professional services to implement the commercial lines clearinghouse required pursuant to subparagraph (2)(b)1.

(d)(c) “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 Page 4 of 20 CODING:

(f)(b) “Exclusive agent” means any licensed insurance 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.

(g)(c) “Independent agent” means any licensed insurance agent not described in paragraph (f) (b).

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

627.351(6)(c)2.a.

(i)(d) “Program” means the clearinghouse created under this section, consisting of the personal lines clearinghouse and the commercial lines clearinghouse.

(j) “Surplus lines agent” means an insurance agent licensed Page 6 of 25 CODING:

Florida Senate - 2026 CS for CS for SB 1028 594-02806-26597-01925-26 20261028c220261028c1 pursuantthe provisions of that contract to s.directly write for any other unaffiliated insurer absent express consent from the company or group of affiliated insurance companies.

(e)(c) “Independent agent” means any licensed insurance agent not described in paragraph (d) (b).

(f) “Primary residence” has the same meaning as in s.

627.351(6)(c)2.a.

(g)(d) “Program” means the clearinghouse created under this section, consisting 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 amend 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.

2.Page 5 of 20 CODING:

To facilitate the diversion of ineligible applicants and existing policyholders from the corporation to authorized insurers, the corporation shall implement, on or before January 1, 2027, a separate commercial lines clearinghouse to confirm eligibility for coverage from the corporation and to enhance access to offers of coverage from authorized insurers for new applicants for commercial residential and 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 Page 7 of 25 CODING:

Florida Senate - 2026 CS for CS for SB 1028 594-02806-26597-01925-26 20261028c220261028c1 for2. 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.

To facilitate the diversion of ineligible applicants and existing policyholders from the corporation to authorized insurers, the corporation may shall also develop and implement a separate commercial lines clearinghouse 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 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 corporation:risk is a commercial risk, shall require all new Page 6 of 20 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 pursuant to subparagraph (2)b.2., require all new applications for commercial lines coverage, and all commercial 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.

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 Page 8 of 25 CODING:

Florida Senate - 2026 CS for CSSB 1028 597-01925-26 20261028c1 applications for SBcommercial 1028lines 594-02806-26coverage, 20261028c2and all commercial lines policies due for renewal, to be initially submitted for coverage through 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 approved surplus lines clearinghouse insurerinsurer, before binding or renewing coverage by the corporation.

Notwithstanding this paragraph, any commercial lines clearinghouse administrator may charge approved surplus lines clearinghouse insurers participatingand insurplus thelines programagents reasonablePage transaction,7 technology,of administration,20 andCODING: other similar fees.

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

Page 9 of 25 CODING:

Florida Senate - 2026 CS for CS for SB 1028 594-02806-26597-01925-26 20261028c220261028c1 (f)participating Shallin include separate components for authorized insurers and approved surplus lines insurers with respect to the commercialprogram linesreasonable clearinghouse,transaction, eachtechnology, ofadministration, which shall be independently operated and independentlyother funded.similar fees.

(g)(f)(e) InMay thedevelop eventan thatenhanced thereapplication isthat insufficientincludes commercialinformation supportto forassist anyprivate componentinsurers ofin thedetermining commercialwhether linesto clearinghouse,make shallan beoffer relieved of itscoverage obligationsthrough withthe respectprogram. to that component for which there is insufficient commercial support.

(h)(g)(f) ShallFor providepersonal orlines permitresidential accessrisks, tomay sharedrequire orthat, hostedbefore technology,approving systems,all interfaces,new or applications programmingfor interfacescoverage toby the commercialcorporation, linesthat clearinghouseevery administrator,application providedbe thatsubject eachto retainsa operationalperiod controlof over2 andbusiness responsibilitydays forwhen itsany owninsurer technology,participating systems,in interfaces,the orprogram applications.may select the application for coverage.

NotwithstandingFor paragraphcommercial (e),lines theresidential corporationand maycommercial notlines providenonresidential fundsrisks, tothe supportcorporation ormay offsetrequire, thebefore infrastructureapproving orall operationsnew ofapplications thefor commercial lines clearinghousecoverage orby anythe componentcorporation, thereof,that butevery shallapplication fundbe andsubject operateto itsa ownperiod technology,of systems,5 interfaces,business ordays applicationswhen asany necessaryinsurer forparticipating in the corporationprogram tomay accessselect and interface with the commercialapplication linesfor clearinghouse.coverage.

(i)(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) 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.

For commercial lines residential and commercial lines nonresidential risks, the Page 10 of 25 CODING:

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Florida Senate - 2026 CS for CS for SB 1028 594-02806-26 20261028c2 corporation may require, before approving all new applications for commercial lines coverage by the corporation, that every application be subject to a period of 5 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 the commercial lines clearinghouse administrator.

For 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,clearinghouse on terms established by the corporation, and other criteria that the corporation determines necessary to effectively establish, administer, and manage offers of surplus linesPage coverage8 throughof the20 commercialCODING: 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 Page 11 of 25 CODING:

Florida Senate - 2026 CS for CS for SB 1028 594-02806-26597-01925-26 20261028c220261028c1 surplus lines clearinghousecoverage insurersthrough participating in the commercial lines clearinghouseclearinghouse. and to avoid multiple offers of coverage from the same insurer for the same risk.

(n)(i) MustShall submitselect toa the commercial lines clearinghouse administrator itswithin coverage90 termsdays andafter conditions, deductible structures, and unalterable indicated total cost of insurance coverage, which must include, but is not limited to, the premium,effective fees,date 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 thethis corporation.act.

Upon(j) completionMay ofallow such submission, the commercial lines clearinghouse administrator shallto provideestablish theprocedures corporation’sand unalterableaccount indicatedclearance coveragerequirements termsthe andcommercial conditionslines andclearinghouse deductibleadministrator structures,deems butnecessary mayto notensure providean theorderly indicatedprocess totalfor costoffers of corporationcoverage insuranceto coverage,be toprovided theby approved surplus lines clearinghouse insurers participating in the program.commercial lines clearinghouse and to avoid multiple offers of coverage from the same insurer for the same risk.

The(k) Must submit to the commercial lines clearinghouse administrator shallits determine,coverage throughterms establishedand procedures,conditions, whetherdeductible astructures, submissionand isits completeunalterable beforeindicated release,total whichcost submissionof requires,insurance atcoverage, awhich minimum,must ainclude, validatedbut applicationis fromnot limited to, the agentpremium, fees, surcharges, and applicable taxes for the corporation’ssubject unalterablerisk indicatedbefore totalany costapproved ofsurplus insurance,lines clearinghouse insurer is provided a submission for coverage termspursuant andto conditions,the andprogram deductibleby structures.any applicant for new coverage from the corporation or any policyholder of the corporation.

The commercial lines clearinghouse administrator shall thenprovide use the corporation’s unalterable indicationindicated tocoverage determineterms whetherand anyconditions offersand deductible structures, but may not provide the indicated total cost of coveragecorporation frominsurance coverage, to the approved surplus lines clearinghouse insurers satisfyparticipating the requirements set forth in s.the program.

627.351(6)(oo)The andcommercial subparagraphlines (6)(c)2.clearinghouse administrator shall then use the corporation’s unalterable indication to determine whether any offers of coverage from approved surplus lines clearinghouse Page 9 of 20 CODING:

The corporation may not bind or otherwise communicate, indicate, or make an Page 12 of 25 CODING:

Florida Senate - 2026 CS for CS for SB 1028 594-02806-26597-01925-26 20261028c220261028c1 offerinsurers ofsatisfy coverage to an applicant or policyholder, or its agent, or otherwise accept coverage until the commercialrequirements linesset clearinghouseforth 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.s.

627.351(6)(oo) and subparagraph (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, or otherwise accept coverage 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.

(4) TheAny corporationauthorized mayinsurer share risk exposure and policy information with the commercial lines clearinghouse administrator and, through the commercial lines clearinghouse, the commercial lines clearinghouse administrator may useparticipate 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 commercialprogram; lines clearinghouse.

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

however, participation in the Pageprogram 13is ofnot 25mandatory CODING:for any surplus lines insurer.

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Florida Senate - 2026 CS for CS for SB 1028 594-02806-26 20261028c2 program is not mandatory for any surplus lines insurer.

Insurers may, at their election, appoint any agent or surplus lines agent whose directPage or10 indirectof customer20 isCODING: initially underwritten and bound through the program.

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Florida Senate - 2026 CS for SB 1028 597-01925-26 20261028c1 direct or indirect customer is initially underwritten and bound through the program.

(c) Must enter into its standard agency agreement with each agent or surplus lines agent whose direct or indirect customer is underwritten and bound through the program when that agent or surplus lines agent has been appointed by the insurer pursuant Pageto 14s. of 25 CODING:

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Florida Senate - 2026 CS for CS for SB 1028 594-02806-26 20261028c2 to s.

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 limited 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-Page designated11 managingof general20 agent,CODING: managing general underwriter, or 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 usual and customary commission paid by the insurer for that line of business, whichever is greater.

(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.

The surplus lines agent, managing general agent, or managing general underwriter must pay the producing agent a commission that results in an effective commission percentage at least equal to the commission percentage published by the corporation and in effect on January 1, 2026, calculated in the same manner and on the same basis used by the corporation, and Page 15 of 25 CODING:

Florida Senate - 2026 CS for CS for SB 1028 594-02806-26597-01925-26 20261028c220261028c1 shallmanaging retaingeneral theagent remainderor ofbroker the total commission or equivalentsurplus compensation.lines agent;

however, the provisions of paragraph (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 usual and customary commission paid by the insurer for that line of business, whichever is greater.

(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.

The surplus lines agent, managing general agent, or managing general underwriter must pay the producing agent a commission that results in an effective commission percentage at least equal to the commission percentage published by the corporation and in effect on January 1, 2026, calculated in the same manner and on the same basis used by the corporation, and shall retain the remainder of the total commission or equivalent compensation.

(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 coveragePage from12 an authorized insurer through the program at a premium that is at or below the eligibility threshold for applicants for new coverage of a20 primaryCODING: residence established in s.

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Florida Senate - 2026 CS for SB 1028 597-01925-26 20261028c1 coverage from an authorized insurer through the program at a premium that is at or below the eligibility threshold for applicants for new coverage of a primary residence established in s.

627.351(6)(c)5.a., or the eligibility Pagethreshold 16for ofapplicants 25for CODING:new coverage on a risk that is not a primary residence established in s.

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Florida Senate - 2026 CS for CS for SB 1028 594-02806-26 20261028c2 threshold for applicants for new coverage on a risk that is not a primary residence established in s.

627.351(6)(c)5.a., or exceeds the eligibility threshold for risks that are not primary residences ofPage policyholders13 of the20 corporationCODING: established in s.

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Florida Senate - 2026 CS for SB 1028 597-01925-26 20261028c1 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 eligibilityof thresholdthe mustcorporation beat maderenewal beforefrom thean submissionauthorized ofinsurer through the corporation’sprogram coveragewhich termsis andat conditions,or deductiblebelow Pagethe 17eligibility ofthreshold 25in CODING:s.

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Florida Senate - 2026 CS for CS for SB 1028 594-02806-26 20261028c2 structures, and unalterable indicated total cost of insurance is provided to the commercial lines clearinghouse administrator.

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 program which is at or below the eligibility threshold in s.

627.351(6)(c)5.c., the insured may electPage to14 acceptof such20 coverageCODING: or may elect to accept or continue coverage with the corporation.

Section 627.351(6)(c)5.c.(I) does not apply to an offer of coverage from an authorized insurer obtained through the program.

(c)1.

Except as provided in subparagraph 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 pursuant to the Page 18 of 25 CODING:

Florida Senate - 2026 CS for CS for SB 1028 594-02806-26597-01925-26 20261028c220261028c1 programelect byto anaccept approvedsuch surpluscoverage linesor clearinghousemay insurer,elect remainsto eligibleaccept foror continue coverage fromwith the corporation.

Section 627.351(6)(c)5.c.(I) does not apply to an offer of coverage from an authorized insurer obtained through the program.

(c)1.

Except as provided in subparagraph 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 pursuant to the program by an approved surplus lines clearinghouse insurer, remains eligible for coverage from the corporation.

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 ishas comparablematerial coverage,terms and theconditions totalthat costare ofsubstantially suchequivalent insuranceto coverageor isbetter not more than 20 percent greater than the total cost of insurance coverage from the corporation,corporation mayas elect to acceptall suchaspects coverageof fromsuch thecoverage, approvedas surplusdetermined linesby clearinghousethe insurercorporation orthrough maythe electclearinghouse toprocess acceptand orapplicable continueprogram coveragestandards, withand the corporation,total but,cost ifof electingsuch corporationinsurance coverage,coverage suchis applicantnot ormore policyholderthan must20 paypercent greater than the total cost of insurance forcoverage corporationfrom coveragethe thatcorporation, ismay subjectelect to s.accept Page 15 of 20 CODING:

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Florida Senate - 2026 CS for SB 1028 597-01925-26 20261028c1 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 a premium for corporation coverage that is subject to s.

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

(a) Are granted and must maintain ownership and the exclusive use of expirations, records, or other written or Pageelectronic 19information ofdirectly 25related CODING:to such applications or renewals written through the corporation or through an insurer participating in the program, notwithstanding s.

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Florida Senate - 2026 CS for CS for SB 1028 594-02806-26 20261028c2 electronic information directly related to such applications or renewals written through the corporation or through an insurer participating in the program, notwithstanding s.

(c)Page May16 acceptof an20 appointmentCODING: from any insurer participating in the program.

(d) May enter into either a standard or limited agency agreement with the insurer, at the insurer’s option, and may enter into agreements with a surplus lines agent.

Applicants ineligible for coverage in accordance with subsection (6) (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) Exclusive agents submitting new applications for coverage or that are the agent of record on a renewal policy submitted to the program:

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Florida Senate - 2026 CS for CS for SB 1028 594-02806-26597-01925-26 20261028c220261028c1 (a)(c) MustMay maintainaccept ownershipan andappointment thefrom exclusiveany 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,program. notwithstanding s.

(d) May enter into either a standard or limited agency agreement with the insurer, at the insurer’s option, and may enter into agreements with a surplus lines agent.

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.

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

(a) 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.

(c) Must only facilitate the placement of an offer of coveragePage from17 anof insurer20 whoseCODING: limited servicing agreement is approved by that exclusive agent’s exclusive insurer.

(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.

The exclusive agent’s insurer must approve a limited service agreement for the program for any insurer for which it has approved a service agreement for other purposes.

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.

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Florida Senate - 2026 CS for CS for SB 1028 594-02806-26597-01925-26 20261028c220261028c1 (9)(8) Submission of an application for coverage byfrom 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 maywhose notlimited beservicing consideredagreement acceptanceis ofapproved coverageby ofthat theexclusive riskagent’s byexclusive theinsurer. corporation.

(10)(9)(d) TheMay 45-dayenter noticeinto a limited servicing agreement with the insurer making an offer of nonrenewalcoverage, requirementand setonly forthafter inthe s.exclusive agent’s insurer has approved the limited servicing agreement terms.

The exclusive agent’s insurer must approve a limited service agreement for the program for any insurer for which it has approved a service agreement for other purposes.

Applicants ineligible for coverage in accordance with subsection (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.

(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.

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

I ofPage the18 Stateof Constitution.20 CODING:

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Florida Senate - 2026 CS for SB 1028 597-01925-26 20261028c1 of the State Constitution.

Is not otherwise readily ascertainable or publicly Pageavailable 22by ofproper 25means CODING:by other persons from another source in the same configuration as provided to the clearinghouse;

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Florida Senate - 2026 CS for CS for SB 1028 594-02806-26 20261028c2 available by proper means by other persons from another source in the same configuration as provided to the clearinghouse;

If the insurer to which it pertains gives prior written consent;Page 19 of 20 CODING:

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Florida Senate - 2026 CS for SB 1028 597-01925-26 20261028c1 consent;

(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 Page 23 of 25 CODING:

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Florida Senate - 2026 CS for CS for SB 1028 594-02806-26 20261028c2 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 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 Page 24 of 25 CODING:

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Florida Senate - 2026 CS for CS for SB 1028 594-02806-26 20261028c2 residential coverage or commercial nonresidential coverage from the corporation and any policyholder of the corporation submit applications for coverage through the commercial lines 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).

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