HB 1503 — Citizens Property Insurance Corporation

(V) There shall be no credits or relief from apportionment to a company for emergency assessments collected from its policyholders under sub-sub-subparagraph d.(III).

Page 6of 140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 (VI)(IV) TheA plancompany ofwhich operationis maya alsomember provideof fora thegroup award of credits,companies forunder acommon periodmanagement notmay elect to exceedhave 3its years,credits fromapplied on a regulargroup assessmentbasis, pursuantand toany sub-sub-subparagraphcompany d.(I) or sub-sub-group subparagraphmay d.(II)elect asto anhave incentiveits forcredits takingapplied policiesto outany ofother thecompany Residentialor Propertygroup. and Casualty Joint Underwriting Association.

(V) There shall be no credits or relief from apportionment to a company for emergency assessments collected from its policyholders under sub-sub-subparagraph d.(III).

(VI) The plan of operation may also provide for the award of credits, for a period not to exceed 3 years, from a regular assessment pursuant to sub-sub-subparagraph d.(I) or sub-sub- subparagraph d.(II) as an incentive for taking policies out of the Residential Property and Casualty Joint Underwriting Association.

With the approval of the department, the association may waive these geographic criteria for a take-out plan that removes at least the lesser of 100,000 Residential Property and Casualty Joint Underwriting Association policies or 15 percent of the total number of Residential Property and Casualty Joint Underwriting Association policies, provided the governing board of the Residential Property and Casualty Joint Underwriting Association certifies that the take-out plan will materially reduce the Residential Property and Casualty Joint Underwriting Association's 100-year probable maximum loss from Page 7of 140139 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 Property and Casualty Joint Underwriting Association policies or 15 percent of the total number of Residential Property and Casualty Joint Underwriting Association policies, provided the governing board of the Residential Property and Casualty Joint Underwriting Association certifies that the take-out plan will materially reduce the Residential Property and Casualty Joint Underwriting Association's 100-year probable maximum loss from hurricanes.

It is the intent of the Legislature that insurers remain fully responsible for paying regular assessments and collecting emergency assessments for any deficitsPage of8of the139 association;CODING:

however, it is also the intent of the Legislature to provide a means by which assessment liabilities may be amortized over a period of years.

d.(I) When the deficit incurred in a particular calendar year is 10 percent or less of the aggregate statewide direct written premium for property insurance for the prior calendar year for all member insurers, the association shall levy an Page 8of 140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 assessmentdeficits onof member insurers in an amount equal to the deficit.association;

however, it is also the intent of the Legislature to provide a means by which assessment liabilities may be amortized over a period of years.

d.(I) When the deficit incurred in a particular calendar year is 10 percent or less of the aggregate statewide direct written premium for property insurance for the prior calendar year for all member insurers, the association shall levy an assessment on member insurers in an amount equal to the deficit.

(III) Upon a determination by the board of directors that a deficit exceeds the amount that will be recovered through regular assessments on member insurers, pursuant to sub-sub- subparagraph (I) or sub-sub-subparagraph (II), the board shall levy, after verification by the department, emergency assessments to be collected by member insurers and by underwriting associations created pursuant to this section which writePage property9of insurance,139 uponCODING: issuance or renewal of property insurance policies other than National Flood Insurance policies in the year or years following levy of the regular assessments.

The amount of the emergency assessment collected in a particular year shall be a uniform percentage of that year's direct written premium for property insurance for all member insurers and underwriting associations, excluding National Flood Insurance Page 9of 140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 policywrite premiums,property asinsurance, annuallyupon determinedissuance byor renewal of property insurance policies other than National Flood Insurance policies in the boardyear andor verifiedyears byfollowing levy of the department.regular assessments.

The amount of the emergency assessment collected in a particular year shall be a uniform percentage of that year's direct written premium for property insurance for all member insurers and underwriting associations, excluding National Flood Insurance policy premiums, as annually determined by the board and verified by the department.

The aggregate amount of emergency assessments levied under this sub-sub-subparagraph in any calendar year may not exceed the greater of 10 percent of the amount needed to cover the original deficit, plus interest, fees, commissions, required reserves, and other costs associated with financing of the original deficit, or 10 percent of the aggregate statewide direct written premium for property insurance written by member insurersPage and10 underwritingof139 associationsCODING: for the prior year, plus interest, fees, commissions, required reserves, and other costs associated with financing the original deficit.

The board may pledge the proceeds of the emergency assessments under this sub- sub-subparagraph as the source of revenue for bonds, to retire any other debt incurred as a result of the deficit or events giving rise to the deficit, or in any other way that the board Page 10 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 determinesinsurers willand efficientlyunderwriting recoverassociations for the prior year, plus interest, fees, commissions, required reserves, and other costs associated with financing the original deficit.

The board may pledge the proceeds of the emergency assessments under this sub- sub-subparagraph as the source of revenue for bonds, to retire any other debt incurred as a result of the deficit or events giving rise to the deficit, or in any other way that the board determines will efficiently recover the deficit.

(IV) Each member insurer's share of the total regular assessments under sub-sub-subparagraph (I) or sub-sub- subparagraph (II) shall be in the proportion that the insurer's net direct premium for property insurance in this state, for the year preceding the assessment bears to the aggregate statewide net direct premium for property insurance of all member insurers,Page as11 reducedof139 byCODING: any credits for voluntary writings for that year.

(V) If regular deficit assessments are made under sub-sub- subparagraph (I) or sub-sub-subparagraph (II), or by the Residential Property and Casualty Joint Underwriting Association under sub-subparagraph (6)(b)3.a., the association shall levy upon the association's policyholders, as part of its next rate Page 11 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 filing,insurers, oras byreduced a separate rate filing solely for this purpose, a market equalization surcharge in a percentage equal to the total amount of such regular assessments divided by theany aggregatecredits statewide direct written premium for propertyvoluntary insurancewritings for memberthat insurers for the prior calendar year.

(V) If regular deficit assessments are made under sub-sub- subparagraph (I) or sub-sub-subparagraph (II), or by the Residential Property and Casualty Joint Underwriting Association under sub-subparagraph (6)(b)3.a., the association shall levy upon the association's policyholders, as part of its next rate filing, or by a separate rate filing solely for this purpose, a market equalization surcharge in a percentage equal to the total amount of such regular assessments divided by the aggregate statewide direct written premium for property insurance for member insurers for the prior calendar year.

In order to avoid needless and indiscriminate proliferation, duplication, and fragmentation of such assistance programs, any unit of local government, any residents of which are insured by the association, may provide for the payment of losses, regardless ofPage whether12 orof139 notCODING: the losses occurred within or outside of the territorial jurisdiction of the local government.

Revenue bonds may not be issued until validated pursuant to chapter 75, unless a state of emergency is declared by executive order or proclamation of the Governor pursuant to s.

252.36 making such findings as are necessary to determine that it is in the best interests of, and necessary for, the protection of the public Page 12 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 health, safety, and general welfare of residentswhether ofor thisnot state and the protectionlosses andoccurred preservationwithin of the economic stability of insurers operating in this state, and declaring it an essential public purpose to permit certain municipalities or countiesoutside to issue bonds as will provide relief to claimants and policyholders of the associationterritorial andjurisdiction insurers responsible for apportionment of planthe losses.local government.

Revenue bonds may not be issued until validated pursuant to chapter 75, unless a state of emergency is declared by executive order or proclamation of the Governor pursuant to s.

252.36 making such findings as are necessary to determine that it is in the best interests of, and necessary for, the protection of the public health, safety, and general welfare of residents of this state and the protection and preservation of the economic stability of insurers operating in this state, and declaring it an essential public purpose to permit certain municipalities or counties to issue bonds as will provide relief to claimants and policyholders of the association and insurers responsible for apportionment of plan losses.

If any of the bonds remain unsold 60 days after issuance, the department shall require all insurersPage subject13 toof139 assessmentCODING: to purchase the bonds, which shall be treated as admitted assets;

each insurer shall be required to purchase that percentage of the unsold portion of the bond issue that equals the insurer's relative share of assessment liability under this subsection.

An insurer shall not be required to purchase the bonds to the extent that the department determines that the purchase would endanger or impair Page 13 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 theinsurers solvencysubject ofto assessment to purchase the insurer.bonds, which shall be treated as admitted assets;

each insurer shall be required to purchase that percentage of the unsold portion of the bond issue that equals the insurer's relative share of assessment liability under this subsection.

An insurer shall not be required to purchase the bonds to the extent that the department determines that the purchase would endanger or impair the solvency of the insurer.

However, a limited apportionment company shall collect from its policyholders any emergency assessment imposed underPage sub-sub-subparagraph14 2.d.(III).of139 CODING:

The plan shall provide that, if the department determines that any regular assessment will result in an impairment of the surplus of a limited apportionment company, the department may direct that all or part of such assessment be deferred.

However, there shall be no limitation or deferment of an emergency assessment to be collected from policyholders under sub-sub-subparagraph Page 14 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 under sub-sub-subparagraph 2.d.(III).

The plan shall provide that, if the department determines that any regular assessment will result in an impairment of the surplus of a limited apportionment company, the department may direct that all or part of such assessment be deferred.

However, there shall be no limitation or deferment of an emergency assessment to be collected from policyholders under sub-sub-subparagraph 2.d.(III).

It is the intent of the Legislature that the rates for coveragePage provided15 byof139 theCODING: association be actuarially sound and not competitive with approved rates charged in the admitted voluntary market such that the association functions as a residual market mechanism to provide insurance only when the insurance cannot be procured in the voluntary market.

The plan of operation shall provide a mechanism to assure that, beginning no later than January 1, 1999, the rates charged by the Page 15 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 associationcoverage forprovided eachby linethe ofassociation businessbe areactuarially reflectivesound ofand not competitive with approved rates charged in the admitted voluntary market forsuch hurricanethat coveragethe forassociation eachfunctions lineas ofa businessresidual inmarket mechanism to provide insurance only when the variousinsurance areascannot eligiblebe forprocured associationin coverage.the voluntary market.

The plan of operation shall provide a mechanism to assure that, beginning no later than January 1, 1999, the rates charged by the association for each line of business are reflective of approved rates in the voluntary market for hurricane coverage for each line of business in the various areas eligible for association coverage.

The association may write coverage above the limits specified in this subparagraph with or without facultative or other reinsurancePage coverage,16 asof139 theCODING: association determines appropriate.

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hb1503-01-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/HB1503 2024 reinsurance coverage, as the association determines appropriate.

Page(I) 16Whether of140the CODING:likelihood of a loss for the individual risk is substantially higher than for other risks of the same class;

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hb1503-02-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/HB1503 2024 (I) Whether the likelihood of a loss for the individual risk is substantially higher than for other risks of the same class;

(I)Page Pay17 toof139 theCODING: producing agent of record of the policy, for the first year, an amount that is the greater of the insurer's usual and customary commission for the type of policy written or a fee equal to the usual and customary commission of the association;

or (II) Offer to allow the producing agent of record of the policy to continue servicing the policy for a period of not less Page 17 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 than(I) 1Pay yearto andthe offerproducing toagent payof record of the agentpolicy, for the greaterfirst ofyear, an amount that is the insurer'sgreater orof the association'sinsurer's usual and customary commission for the type of policy written.written or a fee equal to the usual and customary commission of the association;

or (II) Offer to allow the producing agent of record of the policy to continue servicing the policy for a period of not less than 1 year and offer to pay the agent the greater of the insurer's or the association's usual and customary commission for the type of policy written.

Upon termination of eligibility, the association shall provide written notice to the policyholder and agent of record stating that the association policy must be canceled as of 60 days after the date of the notice because of the offer of coverage from an authorizedPage insurer.18 of139 CODING:

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hb1503-01-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/HB1503 2024 authorized insurer.

Page(I) 18Pay of140to CODING:the producing agent of record of the association policy, for the first year, an amount that is the greater of the insurer's usual and customary commission for the type of policy written or a fee equal to the usual and customary commission of the association;

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hb1503-02-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/HB1503 2024 (I) Pay to the producing agent of record of the association policy, for the first year, an amount that is the greater of the insurer's usual and customary commission for the type of policy written or a fee equal to the usual and customary commission of the association;

The plan of operation may authorize the formation of a private nonprofit corporation, a private nonprofit unincorporated association, a partnership, a trust, a limited liability company, or a nonprofit mutual company which may be empowered,Page among19 otherof139 things,CODING: to borrow money by issuing bonds or by incurring other indebtedness and to accumulate reserves or funds to be used for the payment of insured catastrophe losses.

The plan may authorize all actions necessary to facilitate the issuance of bonds, including the pledging of assessments or other revenues.

b.

Any entity created under this subsection, or any entity Page 19 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 formedempowered, foramong theother purposesthings, ofto thisborrow subsection,money mayby sueissuing bonds or by incurring other indebtedness and to accumulate reserves or funds to be sued,used mayfor borrowthe money;payment of insured catastrophe losses.

The plan may authorize all actions necessary to facilitate the issuance of bonds, including the pledging of assessments or other revenues.

b.

Any entity created under this subsection, or any entity formed for the purposes of this subsection, may sue and be sued, may borrow money;

Any such entity may accumulate reservesPage and20 retainof139 surplusesCODING: as of the end of any association year to provide for the payment of losses incurred by the association during that year or any future year.

The association shall incorporate and continue the plan of operation and articles of agreement in effect on the effective date of chapter 76-96, Laws of Florida, to the extent that it is not inconsistent with chapter 76-96, and as subsequently modified Page 20 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 consistentreserves withand chapterretain 76-96.surpluses as of the end of any association year to provide for the payment of losses incurred by the association during that year or any future year.

The association shall incorporate and continue the plan of operation and articles of agreement in effect on the effective date of chapter 76-96, Laws of Florida, to the extent that it is not inconsistent with chapter 76-96, and as subsequently modified consistent with chapter 76-96.

However, no commission will be paid on that portion of the premium which is in excess of the standard premium of that company.Page 21 of139 CODING:

8.

Subject to approval by the department, the association may establish different eligibility requirements and operational procedures for any line or type of coverage for any specified eligible area or portion of an eligible area if the board determines that such changes to the eligibility requirements and operational procedures are justified due to the voluntary market Page 21 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 beingcompany. sufficiently stable and competitive in such area or for such line or type of coverage and that consumers who, in good faith, are unable to obtain insurance through the voluntary market through ordinary methods would continue to have access to coverage from the association.

8.

Subject to approval by the department, the association may establish different eligibility requirements and operational procedures for any line or type of coverage for any specified eligible area or portion of an eligible area if the board determines that such changes to the eligibility requirements and operational procedures are justified due to the voluntary market being sufficiently stable and competitive in such area or for such line or type of coverage and that consumers who, in good faith, are unable to obtain insurance through the voluntary market through ordinary methods would continue to have access to coverage from the association.

The pledge or sale of, the lien upon, and the security interest in any rights, revenues, or other assets of the association created or purported to be created pursuant to any financing documents to secure any bonds or other indebtedness of the association shall be and remain valid and enforceable, notwithstanding the commencement of and during the continuation of, and after, any rehabilitation, insolvency, liquidation, bankruptcy,Page receivership,22 conservatorship,of139 reorganization,CODING: or similar proceeding against the association under the laws of this state or any other applicable laws.

b.

No such proceeding shall relieve the association of its obligation, or otherwise affect its ability to perform its obligation, to continue to collect, or levy and collect, assessments, market equalization or other surcharges, projected Page 22 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 recoveriesbankruptcy, fromreceivership, theconservatorship, Floridareorganization, Hurricaneor Catastrophesimilar Fund,proceeding reinsuranceagainst recoverables,the orassociation anyunder otherthe rights,laws revenues,of orthis otherstate assetsor ofany theother associationapplicable pledged.laws.

b.

No such proceeding shall relieve the association of its obligation, or otherwise affect its ability to perform its obligation, to continue to collect, or levy and collect, assessments, market equalization or other surcharges, projected recoveries from the Florida Hurricane Catastrophe Fund, reinsurance recoverables, or any other rights, revenues, or other assets of the association pledged.

As used in this subsection, the term "financing documents" means any agreement, instrument, or other document now existing or hereafter created evidencing any bonds or other indebtedness of the association or pursuant to which any such bonds or other indebtedness has been or may be issued and pursuant to which any rights, revenues, or other assets of the associationPage are23 pledgedof139 orCODING: sold to secure the repayment of such bonds or indebtedness, together with the payment of interest on such bonds or such indebtedness, or the payment of any other obligation of the association related to such bonds or indebtedness.

e.

Any such pledge or sale of assessments, revenues, contract rights or other rights or assets of the association Page 23 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 shallassociation constituteare apledged lienor andsold securityto interest,secure orthe sale,repayment asof thesuch casebonds mayor be,indebtedness, thattogether iswith immediatelythe effectivepayment andof attachesinterest toon such assessments,bonds revenues, contract, or othersuch rightsindebtedness, or assets,the whetherpayment orof notany imposedother orobligation collectedof at the timeassociation therelated pledgeto orsuch salebonds isor made.indebtedness.

e.

Any such pledge or sale of assessments, revenues, contract rights or other rights or assets of the association shall constitute a lien and security interest, or sale, as the case may be, that is immediately effective and attaches to such assessments, revenues, contract, or other rights or assets, whether or not imposed or collected at the time the pledge or sale is made.

There shall be no liability on the part of, and no cause of action of any nature shall arise against, any member insurer or its agents or employees, agents or employees of the association,Page members24 ofof139 theCODING: board of directors of the association, or the department or its representatives, for any action taken by them in the performance of their duties or responsibilities under this subsection.

Such immunity does not apply to actions for breach of any contract or agreement pertaining to insurance, or any willful tort.

(6) CITIZENS PROPERTY INSURANCE CORPORATION.— Page 24 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 (a)association, Themembers publicof purposethe board of thisdirectors subsectionof isthe toassociation, ensureor thatthe theredepartment isor anits orderlyrepresentatives, market for propertyany insuranceaction fortaken residentsby andthem businessesin the performance of their duties or responsibilities under this state.subsection.

Such immunity does not apply to actions for breach of any contract or agreement pertaining to insurance, or any willful tort.

(6) CITIZENS PROPERTY INSURANCE CORPORATION.— (a) The public purpose of this subsection is to ensure that there is an orderly market for property insurance for residents and businesses of this state.

It is necessary, therefore, to provide affordable property insurancePage to25 applicantsof139 whoCODING: are in good faith entitled to procure insurance through the voluntary market but are unable to do so.

The Legislature intends, therefore, that affordable property insurance be provided and that it continue to be provided, as long as necessary, through Citizens Property Insurance Corporation, a government entity that is an integral part of the state, and that is not a private insurance company.

Page 25 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 Toinsurance that end, the corporation shall strive to increaseapplicants thewho availabilityare of affordable property insurance in thisgood state,faith whileentitled achieving efficiencies and economies, and while providing service to policyholders,procure applicants,insurance andthrough agents which is no less than the quality generally provided in the voluntary market,market forbut theare achievementunable ofto thedo foregoingso. public purposes.

The Legislature intends, therefore, that affordable property insurance be provided and that it continue to be provided, as long as necessary, through Citizens Property Insurance Corporation, a government entity that is an integral part of the state, and that is not a private insurance company.

To that end, the corporation shall strive to increase the availability of affordable property insurance in this state, while achieving efficiencies and economies, and while providing service to policyholders, applicants, and agents which is no less than the quality generally provided in the voluntary market, for the achievement of the foregoing public purposes.

The corporation shall provide insurance for residential and commercial property, for applicants who are entitled, but, in goodPage faith,26 areof139 unableCODING: to procure insurance through the voluntary market.

The corporation shall operate pursuant to a plan of operation approved by order of the Financial Services Commission.

The plan is subject to continuous review by the commission.

The commission may, by order, withdraw approval of all or part of a plan if the commission determines that conditions have changed since approval was granted and that the Page 26 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 purposesgood offaith, theare planunable requireto changesprocure ininsurance through the plan.voluntary market.

The corporation shall operate pursuant to a plan of operation approved by order of the Financial Services Commission.

The plan is subject to continuous review by the commission.

The commission may, by order, withdraw approval of all or part of a plan if the commission determines that conditions have changed since approval was granted and that the purposes of the plan require changes in the plan.

The office shall approve the method used by the corporation for valuing the dwellingPage replacement27 costof139 forCODING: the purposes of this subparagraph.

If a policyholder is insured by the corporation before being determined to be ineligible pursuant to this subparagraph and such policyholder files a lawsuit challenging the determination, the policyholder may remain insured by the corporation until the conclusion of the litigation.

b.

Effective January 1, 2015, a structure that has a Page 27 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 dwelling replacement cost offor $900,000the orpurposes more, or a single condominium unit that has a combined dwelling and contents replacement cost of $900,000this orsubparagraph. more, is not eligible for coverage by the corporation.

If a policyholder is insured by the corporation before being determined to be ineligible pursuant to this subparagraph and such policyholder files a lawsuit challenging the determination, the policyholder may remain insured by the corporation until the conclusion of the litigation.

b.

Effective January 1, 2015, a structure that has a dwelling replacement cost of $900,000 or more, or a single condominium unit that has a combined dwelling and contents replacement cost of $900,000 or more, is not eligible for coverage by the corporation.

Such dwellings insured by the corporationPage on28 Decemberof139 31,CODING: 2016, may continue to be covered by the corporation until the end of the policy term.

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hb1503-01-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/HB1503 2024 corporation on December 31, 2016, may continue to be covered by the corporation until the end of the policy term.

In such counties a personal lines residential structure that has a dwelling replacement cost of less than $1 million, or a single Pagecondominium 28unit of140that CODING:has a combined dwelling and contents replacement cost of less than $1 million, is eligible for coverage by the corporation.

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hb1503-02-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/HB1503 2024 condominium unit that has a combined dwelling and contents replacement cost of less than $1 million, is eligible for coverage by the corporation.

1609.2, International Building Code (2006), and that has an insured value on the structure of $750,000 or more is not eligible for coverage by the corporation unless the structure has opening protections as required under thePage Florida29 Buildingof139 CodeCODING: for a newly constructed residential structure in that area.

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hb1503-01-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/HB1503 2024 the Florida Building Code for a newly constructed residential structure in that area.

161.54(6)(a), Pagethat 29is of140newly CODING:constructed, or rebuilt, repaired, restored, or remodeled to increase the total square footage of finished area by more than 25 percent, pursuant to a permit applied for after July 1, 2015, is not eligible for coverage by the corporation if the structure is seaward of the coastal construction control line established pursuant to s.

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hb1503-02-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/HB1503 2024 that is newly constructed, or rebuilt, repaired, restored, or remodeled to increase the total square footage of finished area by more than 25 percent, pursuant to a permit applied for after July 1, 2015, is not eligible for coverage by the corporation if the structure is seaward of the coastal construction control line established pursuant to s.

All insurers authorized to write one or more subject lines of business in this state are subject to assessment by the corporation and, for the purposes of this subsection, are referred to collectively as "assessable insurers." Insurers writing one or more subject lines of business in this state pursuantPage to30 partof139 VIIICODING: of chapter 626 are not assessable insurers;

however, insureds who procure one or more subject lines of business in this state pursuant to part VIII of chapter 626 are subject to assessment by the corporation and are referred to collectively as "assessable insureds." An insurer's assessment liability begins on the first day of the calendar year following the year in which the insurer was issued a Page 30 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 certificatepursuant of authority to transactpart insuranceVIII for subject lines of businesschapter in626 thisare statenot andassessable terminatesinsurers; 1 year after the end of the first calendar year during which the insurer no longer holds a certificate of authority to transact insurance for subject lines of business in this state.

however, insureds who procure one or more subject lines of business in this state pursuant to part VIII of chapter 626 are subject to assessment by the corporation and are referred to collectively as "assessable insureds." An insurer's assessment liability begins on the first day of the calendar year following the year in which the insurer was issued a certificate of authority to transact insurance for subject lines of business in this state and terminates 1 year after the end of the first calendar year during which the insurer no longer holds a certificate of authority to transact insurance for subject lines of business in this state.

b.(II) A commercial lines account for Commercial residential and commercial nonresidential policies that provide issuedPage by31 theof139 corporationCODING: which provides coverage for basic property perils on risks that are not located in areas eligible for coverage by the Florida Windstorm Underwriting Association as those areas were defined on January 1, 2002, and for policies that do not provide coverage for the peril of wind on risks that are located in such areas;

and c.(III) A Coastal account for Personal residential Page 31 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 policies and commercial residential and commercial nonresidential property policies that provide issued by the corporation which provides coverage for thebasic perilproperty ofperils wind on risks that are not located in areas eligible for coverage by the Florida Windstorm Underwriting Association,Association as those areas were defined on January 1, 2002.2002, and for policies that do not provide coverage for the peril of wind on risks that are located in such areas;

and c.(III) A Coastal account for Personal residential policies and commercial residential and commercial nonresidential property policies that provide issued by the corporation which provides coverage for the peril of wind on risks that are located in areas eligible for coverage by the Florida Windstorm Underwriting Association, as those areas were defined on January 1, 2002.

However, the corporation may, however, continue to renew a commercial residential multiperil policy on a building that was is insured by the corporation on June 30, 2014,Page under32 aof139 multiperilCODING: policy.

In issuing multiperil coverage under this sub-subparagraph, the corporation may use its approved policy forms and rates for risks located in areas not eligible for coverage by the Florida Windstorm Underwriting Association, as those areas were defined on January 1, 2002, and for policies that do not provide coverage for the peril of wind on risks that are located in such areas the personal lines Page 32 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 account.2014, under a multiperil policy.

In issuing multiperil coverage under this sub-subparagraph, the corporation may use its approved policy forms and rates for risks located in areas not eligible for coverage by the Florida Windstorm Underwriting Association, as those areas were defined on January 1, 2002, and for policies that do not provide coverage for the peril of wind on risks that are located in such areas the personal lines account.

(I) Personal residential policies and commercial residential and commercial nonresidential property policies that provide coverage for the peril of wind on risks that are located inPage areas33 eligibleof139 forCODING: coverage by the Florida Windstorm Underwriting Association, as those areas were defined on January 1, 2002;

(II) Policies that provide multiperil coverage, if offered by the corporation, and policies that provide coverage only for the peril of wind for risks located in areas eligible for coverage by the Florida Windstorm Underwriting Association, as Page 33 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 in areas eligible for coverage by the Florida Windstorm Underwriting Association, as those areas were defined on January 1, 2002;

(II) Policies that provide multiperil coverage, if offered by the corporation, and policies that provide coverage only for the peril of wind for risks located in areas eligible for coverage by the Florida Windstorm Underwriting Association, as those areas were defined on January 1, 2002;

The coastal account must also include quota share primaryPage insurance34 underof139 subparagraphCODING: (c)2.

The area eligible for coverage with the corporation under this sub-subparagraph under the coastal account also includes the area within Port Canaveral, which is bordered on the south by the City of Cape Canaveral, bordered on the west by the Banana River, and bordered on the north by Federal Government property.

Page 34 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 3.primary insurance under subparagraph (c)2.

The area eligible for coverage with the corporation under this sub-subparagraph under the coastal account also includes the area within Port Canaveral, which is bordered on the south by the City of Cape Canaveral, bordered on the west by the Banana River, and bordered on the north by Federal Government property.

3.

The three separate accounts must be maintained as long as financing obligations entered into by the Florida Windstorm UnderwritingPage Association35 orof139 ResidentialCODING: Property and Casualty Joint Underwriting Association are outstanding, in accordance with the terms of the corresponding financing documents.

If no such financing obligations remain outstanding or if the financing documents allow for combining of accounts, the corporation may consolidate the three separate accounts into a new account, to be known as the Citizens account, for all Page 35 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 revenues,Underwriting assets,Association liabilities,or losses,Residential Property and expensesCasualty Joint Underwriting Association are outstanding, in accordance with the terms of the corporation.corresponding financing documents.

If no such financing obligations remain outstanding or if the financing documents allow for combining of accounts, the corporation may consolidate the three separate accounts into a new account, to be known as the Citizens account, for all revenues, assets, liabilities, losses, and expenses of the corporation.

Creditors of the Residential Property and Casualty Joint Underwriting Association and the accounts specified in sub-sub-subparagraphs a.(I) and (II) may have a claim against, and recourse to, those accounts and no claim against, or recoursePage to,36 theof139 accountCODING: referred to in sub-sub-subparagraph a.(III).

Creditors of the Florida Windstorm Underwriting Association have a claim against, and recourse to, the account referred to in sub-sub-subparagraph a.(III) and no claim against, or recourse to, the accounts referred to in sub-sub- subparagraphs a.(I) and (II).

d.

Revenues, assets, liabilities, losses, and expenses not Page 36 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 attributablerecourse toto, particularthe accountsaccount shallreferred beto proratedin amongsub-sub-subparagraph thea.(III). accounts.

Creditors of the Florida Windstorm Underwriting Association have a claim against, and recourse to, the account referred to in sub-sub-subparagraph a.(III) and no claim against, or recourse to, the accounts referred to in sub-sub- subparagraphs a.(I) and (II).

d.

Revenues, assets, liabilities, losses, and expenses not attributable to particular accounts shall be prorated among the accounts.

(II) Exceeds 2 percent of the aggregate statewide direct written premium for the subject lines of business for the prior calendar year, the corporation shall levy regular assessments on assessable insurers under paragraph (q) and on assessable insureds in an amount equal to the greater of 2 percent of the projected deficit or 2 percent of the aggregate statewide direct written premium for the subject lines of business for the prior Page 37 of140of139 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 (II) Exceeds 2 percent of the aggregate statewide direct written premium for the subject lines of business for the prior calendar year, the corporation shall levy regular assessments on assessable insurers under paragraph (q) and on assessable insureds in an amount equal to the greater of 2 percent of the projected deficit or 2 percent of the aggregate statewide direct written premium for the subject lines of business for the prior calendar year.

shall be collected by the surplus lines agent at the time the surplus lines agent collectsPage the38 surplusof139 linesCODING: tax required by s.

626.932, and paid to the Florida Surplus Lines Service Office at the time the surplus lines agent pays the surplus lines tax to that office.

Upon receipt of regular assessments from surplus lines agents, the Florida Surplus Lines Service Office shall transfer the assessments directly to the corporation as determined by the corporation.

Page 38 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 c.collects the surplus lines tax required by s.

626.932, and paid to the Florida Surplus Lines Service Office at the time the surplus lines agent pays the surplus lines tax to that office.

Upon receipt of regular assessments from surplus lines agents, the Florida Surplus Lines Service Office shall transfer the assessments directly to the corporation as determined by the corporation.

c.

Upon a determination by the board of governors that a projected deficit in the Citizens an account exceeds the amount that is expected to be recovered through surcharges regular assessments under sub-subparagraph a., plus the amount that is expectedPage to39 beof139 recoveredCODING: through surcharges under sub- subparagraph j., the board, after verification by the office, shall levy emergency assessments for as many years as necessary to cover the deficits, to be collected by assessable insurers and the corporation and collected from assessable insureds upon issuance or renewal of policies for subject lines of business, excluding National Flood Insurance Program policies.

The amount Page 39 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 collectedexpected into abe particularrecovered yearthrough mustsurcharges beunder asub- uniformsubparagraph percentagej., ofthe thatboard, year'safter directverification writtenby premiumthe office, shall levy emergency assessments for subjectas linesmany ofyears businessas andnecessary to cover the Citizensdeficits, accountto allbe accountscollected ofby assessable insurers and the corporation,corporation excludingand Nationalcollected Floodfrom Insuranceassessable Programinsureds policyupon premiums,issuance asor annuallyrenewal determinedof bypolicies thefor boardsubject andlines verifiedof bybusiness, theexcluding office.National Flood Insurance Program policies.

The amount collected in a particular year must be a uniform percentage of that year's direct written premium for subject lines of business and the Citizens account all accounts of the corporation, excluding National Flood Insurance Program policy premiums, as annually determined by the board and verified by the office.

Emergency assessmentsPage levied40 byof139 theCODING: corporation on assessable insureds shall be collected by the surplus lines agent at the time the surplus lines agent collects the surplus lines tax required by s.

626.932 and paid to the Florida Surplus Lines Service Office at the time the surplus lines agent pays the surplus lines tax to that office.

The emergency assessments collected shall be transferred directly to the corporation on a periodic basis as Page 40 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 determinedassessments levied by the corporation andon heldassessable insureds shall be collected by the corporationsurplus solelylines inagent at the Citizenstime applicablethe account.surplus lines agent collects the surplus lines tax required by s.

626.932 and paid to the Florida Surplus Lines Service Office at the time the surplus lines agent pays the surplus lines tax to that office.

The emergency assessments collected shall be transferred directly to the corporation on a periodic basis as determined by the corporation and held by the corporation solely in the Citizens applicable account.

The corporation may pledge the proceeds of assessments, projected recoveries from the Florida Hurricane Catastrophe Fund, other insurance and reinsurance recoverables, policyholder surcharges and other surcharges, and other funds available to the corporation as the source of revenue for and to secure bonds issued under paragraph (q), bonds or other indebtednessPage issued41 underof139 subparagraphCODING: (c)3., or lines of credit or other financing mechanisms issued or created under this subsection, or to retire any other debt incurred as a result of deficits or events giving rise to deficits, or in any other way that the board determines will efficiently recover such deficits.

The purpose of the lines of credit or other financing mechanisms is to provide additional resources to assist the Page 41 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 corporationindebtedness inissued coveringunder claimssubparagraph and(c)3., expensesor attributablelines of credit or other financing mechanisms issued or created under this subsection, or to retire any other debt incurred as a catastrophe.result of deficits or events giving rise to deficits, or in any other way that the board determines will efficiently recover such deficits.

The purpose of the lines of credit or other financing mechanisms is to provide additional resources to assist the corporation in covering claims and expenses attributable to a catastrophe.

As used in this subsection and for purposes of any deficit incurred on or after January 25, 2007, the term "subject lines of business" means insurance written by assessable insurersPage or42 procuredof139 byCODING: assessable insureds for all property and casualty lines of business in this state, but not including workers' compensation or medical malpractice.

As used in this sub-subparagraph, the term "property and casualty lines of business" includes all lines of business identified on Form 2, Exhibit of Premiums and Losses, in the annual statement required of authorized insurers under s.

624.424 and any rule adopted Page 42 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 underinsurers thisor section,procured exceptby forassessable thoseinsureds linesfor identifiedall asproperty accident and healthcasualty insurancelines andof exceptbusiness forin policiesthis writtenstate, underbut thenot Nationalincluding Floodworkers' Insurancecompensation Program or themedical Federalmalpractice. Crop Insurance Program.

As used in this sub-subparagraph, the term "property and casualty lines of business" includes all lines of business identified on Form 2, Exhibit of Premiums and Losses, in the annual statement required of authorized insurers under s.

624.424 and any rule adopted under this section, except for those lines identified as accident and health insurance and except for policies written under the National Flood Insurance Program or the Federal Crop Insurance Program.

The Florida Surplus Lines Service Office shall verify the proper application by surplus lines agents of assessment percentages for regular assessments and emergency assessments levied under this subparagraph on assessable insureds and assist the corporation in ensuring the accurate, timely collection and paymentPage of43 assessmentsof139 byCODING: surplus lines agents as required by the corporation.

j.

Upon determination by the board of governors that an account has a projected deficit, the board shall levy a Citizens policyholder surcharge against all policyholders of the corporation.

(I) The surcharge shall be levied as a uniform percentage Page 43 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 ofpayment the premium for the policy of upassessments toby 15surplus percentlines ofagents suchas premium,required whichby funds shall be used to offset the deficit.corporation.

j.

Upon determination by the board of governors that an account has a projected deficit, the board shall levy a Citizens policyholder surcharge against all policyholders of the corporation.

(I) The surcharge shall be levied as a uniform percentage of the premium for the policy of up to 15 percent of such premium, which funds shall be used to offset the deficit.

If the amount of any assessments or surcharges collected from corporation policyholders, assessable insurers or their policyholders, or assessable insureds exceeds the amount ofPage the44 deficits,of139 suchCODING: excess amounts shall be remitted to and retained by the corporation in a reserve to be used by the corporation, as determined by the board of governors and approved by the office, to pay claims or reduce any past, present, or future plan-year deficits or to reduce outstanding debt.

4.

The Citizens account, if established by the corporation Page 44 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 pursuantof the deficits, such excess amounts shall be remitted to sub-subparagraphand 2.b.,retained isby authorizedthe corporation in a reserve to provide:be used by the corporation, as determined by the board of governors and approved by the office, to pay claims or reduce any past, present, or future plan-year deficits or to reduce outstanding debt.

4.

The Citizens account, if established by the corporation pursuant to sub-subparagraph 2.b., is authorized to provide:

Personal residential policies and commercial residential and commercial nonresidential property policies that provide coverage for the peril of wind on risks that are located in areas eligible for coverage by the Florida Windstorm UnderwritingPage Association,45 asof139 thoseCODING: areas were defined on January 1, 2002.

The corporation may offer policies that provide multiperil coverage and shall offer policies that provide coverage only for the peril of wind for risks located in areas eligible for coverage by the Florida Windstorm Underwriting Association, as those areas were defined on January 1, 2002.

The corporation may not offer new commercial residential policies Page 45 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 providingUnderwriting multiperilAssociation, coverage,as butthose shallareas continuewere todefined offeron commercialJanuary residential1, wind-only2002. policies, and may offer commercial residential policies excluding wind.

The corporation may offer policies that provide multiperil coverage and shall offer policies that provide coverage only for the peril of wind for risks located in areas eligible for coverage by the Florida Windstorm Underwriting Association, as those areas were defined on January 1, 2002.

The corporation may not offer new commercial residential policies providing multiperil coverage, but shall continue to offer commercial residential wind-only policies, and may offer commercial residential policies excluding wind.

An applicant or insured who is eligible for a corporationPage policy46 thatof139 providesCODING: coverage only for the peril of wind may elect to purchase or retain such policy and also purchase or retain coverage excluding wind from an authorized insurer without prejudice to the applicant's or insured's eligibility to prospectively purchase a policy that provides multiperil coverage from the corporation.

The following policies, which provide coverage only for the peril of wind, Page 46 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 mustcorporation policy that provides coverage only for the peril of wind may elect to purchase or retain such policy and also includepurchase quotaor shareretain primarycoverage insuranceexcluding underwind subparagraphfrom (c)2.:an authorized insurer without prejudice to the applicant's or insured's eligibility to prospectively purchase a policy that provides multiperil coverage from the corporation.

The following policies, which provide coverage only for the peril of wind, must also include quota share primary insurance under subparagraph (c)2.:

The area eligible for coverage with the corporation under this sub-subparagraph includes the area within Port Canaveral, which is bordered on the south by the City of Cape Canaveral, bordered on the west by thePage Banana47 River,of139 andCODING: bordered on the north by Federal Government property.

Words strickenare deletions;

words underlined are additions.

hb1503-01-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/HB1503 2024 the Banana River, and bordered on the north by Federal Government property.

Page(I) 47The of140surcharge CODING:shall be levied as a uniform percentage of the premium for the policy of up to 15 percent of such premium, which funds shall be used to offset the deficit.

Words strickenare deletions;

words underlined are additions.

hb1503-02-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/HB1503 2024 (I) The surcharge shall be levied as a uniform percentage of the premium for the policy of up to 15 percent of such premium, which funds shall be used to offset the deficit.

Upon a determination by the board of governors that a projected deficit in the Citizens account exceeds the amount thatPage is48 expectedof139 toCODING: be recovered through surcharges under sub- subparagraph a., the board, after verification by the office, shall levy emergency assessments for as many years as necessary to cover the deficits, to be collected by assessable insurers and the corporation and collected from assessable insureds upon issuance or renewal of policies for subject lines of business, excluding National Flood Insurance Program policies.

The amount Page 48 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 collectedthat inis aexpected particularto yearbe mustrecovered bethrough asurcharges uniformunder percentagesub- ofsubparagraph thata., year'sthe directboard, writtenafter premiumverification forby subjectthe linesoffice, ofshall businesslevy andemergency theassessments Citizensfor account,as Nationalmany Floodyears Insuranceas Programnecessary policyto premiums,cover asthe annuallydeficits, determinedto be collected by assessable insurers and the boardcorporation and verifiedcollected byfrom theassessable office.insureds upon issuance or renewal of policies for subject lines of business, excluding National Flood Insurance Program policies.

The amount collected in a particular year must be a uniform percentage of that year's direct written premium for subject lines of business and the Citizens account, National Flood Insurance Program policy premiums, as annually determined by the board and verified by the office.

Emergency assessments levied by the corporation on assessable insuredsPage shall49 beof139 collectedCODING: by the surplus lines agent at the time the surplus lines agent collects the surplus lines tax required by s.

626.932 and paid to the Florida Surplus Lines Service Office at the time the surplus lines agent pays the surplus lines tax to that office.

The emergency assessments collected shall be transferred directly to the corporation on a periodic basis as determined by the corporation and held by the Page 49 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 corporationinsureds solelyshall inbe collected by the Citizenssurplus account.lines agent at the time the surplus lines agent collects the surplus lines tax required by s.

626.932 and paid to the Florida Surplus Lines Service Office at the time the surplus lines agent pays the surplus lines tax to that office.

The emergency assessments collected shall be transferred directly to the corporation on a periodic basis as determined by the corporation and held by the corporation solely in the Citizens account.

or to retire anyPage other50 debtof139 incurredCODING: as a result of deficits or events giving rise to deficits, or in any other way that the board determines will efficiently recover such deficits.

The purpose of the lines of credit or other financing mechanisms is to provide additional resources to assist the corporation in covering claims and expenses attributable to a catastrophe.

As used in this subsection, the term "assessments" includes emergency Page 50 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 assessmentsany underother sub-subparagraphdebt c.incurred as a result of deficits or events giving rise to deficits, or in any other way that the board determines will efficiently recover such deficits.

The purpose of the lines of credit or other financing mechanisms is to provide additional resources to assist the corporation in covering claims and expenses attributable to a catastrophe.

As used in this subsection, the term "assessments" includes emergency assessments under sub-subparagraph c.

As used in this sub-subparagraph, the term "property and casualty lines of business"Page includes51 allof139 linesCODING: of business identified on Form 2, Exhibit of Premiums and Losses, in the annual statement required of authorized insurers under s.

624.424 and any rule adopted under this section, except for those lines identified as accident and health insurance and except for policies written under the National Flood Insurance Program or the Federal Crop Insurance Program.

For purposes of this sub-subparagraph, the Page 51 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 termbusiness" "workers'includes compensation"all includeslines bothof workers'business compensationidentified insuranceon Form 2, Exhibit of Premiums and excessLosses, workers'in compensationthe insurance.annual statement required of authorized insurers under s.

624.424 and any rule adopted under this section, except for those lines identified as accident and health insurance and except for policies written under the National Flood Insurance Program or the Federal Crop Insurance Program.

For purposes of this sub-subparagraph, the term "workers' compensation" includes both workers' compensation insurance and excess workers' compensation insurance.

If the amount of any assessments or surcharges collected from corporation policyholders, assessable insurers or theirPage policyholders,52 orof139 assessableCODING: insureds exceeds the amount of the deficits, such excess amounts shall be remitted to and retained by the corporation in a reserve to be used by the corporation, as determined by the board of governors and approved by the office, to pay claims or reduce any past, present, or future plan-year deficits or to reduce outstanding debt.

Page 52 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 (c)their Thepolicyholders, corporation'sor planassessable insureds exceeds the amount of operation:the deficits, such excess amounts shall be remitted to and retained by the corporation in a reserve to be used by the corporation, as determined by the board of governors and approved by the office, to pay claims or reduce any past, present, or future plan-year deficits or to reduce outstanding debt.

(c) The corporation's plan of operation:

Commercial lines residential and nonresidential policy forms that are generally similar to the basic perils of full coverage obtainable for commercial residential structures and commercialPage nonresidential53 structuresof139 inCODING: the admitted voluntary market.

d.

Personal lines and commercial lines residential property insurance forms that cover the peril of wind only.

The forms are applicable only to residential properties located in areas eligible for coverage by the Florida Windstorm Underwriting Association, as those areas were defined on January Page 53 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 1,commercial 2002.nonresidential structures in the admitted voluntary market.

d.

Personal lines and commercial lines residential property insurance forms that cover the peril of wind only.

The forms are applicable only to residential properties located in areas eligible for coverage by the Florida Windstorm Underwriting Association, as those areas were defined on January 1, 2002.

a.Page 54 of139 CODING:

Words strickenare deletions;

words underlined are additions.

hb1503-01-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/HB1503 2024 a.

(I) "Approved surplusrate" linesmeans: insurer" means an eligible surplus lines insurer that:

(A) IsWith ratedrespect "A-"to oran higherauthorized byinsurer A.M.that holds a certificate of authority, such insurer's filed and approved rate.

Best(B) Company;With respect to an authorized insurer that is an eligible surplus lines insurer, the rate approved by the office as part of such insurer's take-out plan.

(B)(II) Has"Authorized ainsurer" personalmeans: lines residential risk program that is managed by a Florida resident surplus lines broker;

and(A) (C)An Offersinsurer coverageholding toa applicantscertificate forof newauthority; coverage from Page 54 of140 CODING:

or (B) An eligible surplus lines insurer that is rated "A-" or higher by A.M.

Best Company and whose Florida personal lines residential risk or commercial lines residential risk program is managed by a Florida resident surplus lines broker.

(III) "Eligible risks" means personal lines residential and commercial lines residential risks that meet the underwriting criteria of the corporation and are located in areas that were eligible for coverage by the Florida Windstorm Underwriting Association on January 1, 2002.

(IV) "Primary residence" means the dwelling that is the policyholder's primary home or is a rental property that is the primary home of the tenant, and which the policyholder or tenant occupies for more than 9 months of each year.

(V)(I) "Quota share primary insurance" means an arrangement in which the primary hurricane coverage of an Page 55 of139 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 theeligible corporationrisk oris currentprovided policyholdersin ofspecified percentages by the corporation throughand aan take-outauthorized planinsurer. approved by the office.

(II) "Eligible risks" means personal lines residential and commercial lines residential risks that meet the underwriting criteria of the corporation and are located in areas that were eligible for coverage by the Florida Windstorm Underwriting Association on January 1, 2002.

(III) "Primary residence" means the dwelling that is the policyholder's primary home or is a rental property that is the primary home of the tenant, and which the policyholder or tenant occupies for more than 9 months of each year.

(IV)(I) "Quota share primary insurance" means an arrangement in which the primary hurricane coverage of an eligible risk is provided in specified percentages by the corporation and an authorized insurer.

Eligible risks that are provided hurricane coverage through a quota share primary insurance arrangement Pagemust 55be of140provided CODING:policy forms that set forth the obligations of the corporation and authorized insurer under the arrangement, clearly specify the percentages of quota share primary insurance provided by the corporation and authorized insurer, and conspicuously and clearly state that the authorized insurer and the corporation may not be held responsible beyond their specified percentage of coverage of hurricane losses.

Words strickenare deletions;

words underlined are additions.

hb1503-02-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/HB1503 2024 must be provided policy forms that set forth the obligations of the corporation and authorized insurer under the arrangement, clearly specify the percentages of quota share primary insurance provided by the corporation and authorized insurer, and conspicuously and clearly state that the authorized insurer and the corporation may not be held responsible beyond their specified percentage of coverage of hurricane losses.

The corporation may enter into quota share primary insurancePage agreements56 withof139 authorizedCODING: insurers at corporation coverage levels of 90 percent and 50 percent.

Words strickenare deletions;

words underlined are additions.

hb1503-01-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/HB1503 2024 insurance agreements with authorized insurers at corporation coverage levels of 90 percent and 50 percent.

Any quota share primary insurance agreement entered into between an authorized insurer and the corporation must provide for a uniform specified percentage of coverage of hurricane losses, by county or territory as set forth by the Pagecorporation 56board, of140for CODING:all eligible risks of the authorized insurer covered under the agreement.

Words strickenare deletions;

words underlined are additions.

hb1503-02-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/HB1503 2024 corporation board, for all eligible risks of the authorized insurer covered under the agreement.

For all policies of eligible risks covered under such agreements,Page the57 corporationof139 andCODING: the authorized insurer must maintain complete and accurate records for the purpose of exposure and loss reimbursement audits as required by fund rules.

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hb1503-01-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/HB1503 2024 agreements, the corporation and the authorized insurer must maintain complete and accurate records for the purpose of exposure and loss reimbursement audits as required by fund rules.

Pageh. 57 of140 CODING:

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hb1503-02-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/HB1503 2024 h.

3.Page 58 of139 CODING:

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hb1503-01-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/HB1503 2024 3.

The corporation may issue bonds or incur other indebtedness, or have bonds issued on its behalf by a unit of Pagelocal 58government of140pursuant CODING:to subparagraph (q)2.

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hb1503-02-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/HB1503 2024 local government pursuant to subparagraph (q)2.

The corporation may pledge assessments, projected recoveries from the Florida Hurricane Catastrophe Fund, other reinsurance recoverables, policyholder surcharges and other surcharges, and other funds available to the corporation as securityPage for59 bondsof139 orCODING: other indebtedness.

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hb1503-01-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/HB1503 2024 security for bonds or other indebtedness.

The appointment of a consumer Pagerepresentative 59by of140the CODING:Governor is deemed to be within the scope of the exemption provided in s.

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hb1503-02-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/HB1503 2024 representative by the Governor is deemed to be within the scope of the exemption provided in s.

AllPage board60 members,of139 includingCODING: the chair, must be appointed to serve for 3-year terms beginning annually on a date designated by the plan.

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hb1503-01-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/HB1503 2024 All board members, including the chair, must be appointed to serve for 3-year terms beginning annually on a date designated by the plan.

Any executive director appointed on or Pageafter 60July of1401, CODING:2006, is subject to confirmation by the Senate.

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hb1503-02-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/HB1503 2024 after July 1, 2006, is subject to confirmation by the Senate.

four representatives, one appointed by the Florida Association of Insurance Agents, one by the Florida AssociationPage of61 Insuranceof139 andCODING: Financial Advisors, one by the Professional Insurance Agents of Florida, and one by the Latin American Association of Insurance Agencies;

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hb1503-01-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/HB1503 2024 Association of Insurance and Financial Advisors, one by the Professional Insurance Agents of Florida, and one by the Latin American Association of Insurance Agencies;

Page(II) 61The of140committee CODING:shall report to the corporation at each board meeting on insurance market issues which may include rates and rate competition with the voluntary market;

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hb1503-02-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/HB1503 2024 (II) The committee shall report to the corporation at each board meeting on insurance market issues which may include rates and rate competition with the voluntary market;

627.3517, with respect to personal lines residential risksrisks, that are primary residences, if the risk is offered coverage from an authorized insurer at the insurer's approved rate under a standard policy including wind coverage or, if consistent with the insurer's underwriting rules as filed with the office, a basicPage policy62 includingof139 windCODING: coverage, for a new application to the corporation for coverage, the risk is not eligible for any policy issued by the corporation unless the premium for coverage from the authorized insurer is more than 20 percent greater than the premium for comparable coverage from the corporation.

Whenever an offer of coverage for a personal lines residential risk that is a primary residence is received for a policyholder of the corporation at renewal from an authorized insurer, if the offer is equal to or less than the corporation's renewal premium for comparable coverage, the risk is not eligible for coverage with the corporation for policies that renew before April 1, 2023;

for policies that renew on or Page 62 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 afterbasic thatpolicy date,including wind coverage, for a new application to the corporation for coverage, the risk is not eligible for coverageany withpolicy issued by the corporation unless the premium for coverage from the authorized insurer is more than 20 percent greater than the corporation's renewal premium for comparable coverage.coverage from the corporation.

Whenever an offer of coverage for a personal lines residential risk is received for a policyholder of the corporation at renewal from an authorized insurer, if the offer is equal to or less than the corporation's renewal premium for comparable coverage, the risk is not eligible for coverage with the corporation for policies that renew before April 1, 2023;

for policies that renew on or after that date, the risk is not eligible for coverage with the corporation unless the premium for coverage from the authorized insurer is more than 20 percent greater than the corporation's renewal premium for comparable coverage.

A policyholderPage removed63 fromof139 theCODING: corporation through an assumption agreement does not remain eligible for coverage from the corporation after the end of the policy term.

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hb1503-01-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/HB1503 2024 policyholder removed from the corporation through an assumption agreement does not remain eligible for coverage from the corporation after the end of the policy term.

ThisHowever, sub-notwithstanding subparagraphany appliesother onlyprovision of law, this sub-subparagraph does not apply to risksa policy that aredoes not cover a primary residences.residence.

627.3518, before a policy is issued to the risk by the corporation or during the first 30 days of coverage by the corporation, and the producing Pageagent 63who of140submitted CODING:the application to the plan or to the corporation is not currently appointed by the insurer, the insurer shall:

(A) Pay to the producing agent of record of the policy for the first year, an amount that is the greater of the insurer's usual and customary commission for the type of policy written or a fee equal to the usual and customary commission of the corporation;

or (B) Offer to allow the producing agent of record of the policy to continue servicing the policy for at least 1 year and offer to pay the agent the greater of the insurer's or the corporation's usual and customary commission for the type of Page 64 of139 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 agentpolicy whowritten. submitted the application to the plan or to the corporation is not currently appointed by the insurer, the insurer shall:

(A)If Pay to the producing agent ofis recordunwilling ofor theunable policyto foraccept theappointment firstfor year,any anreason, amountincluding that is the greaterfailure of thesuch insurer'sagent usualto andbe customarylicensed commissionas fora thesurplus typelines ofagent, policythe writtennew orinsurer ashall feepay equal to the usualagent andin customaryaccordance commissionwith ofsub-sub-sub-subparagraph the(A). corporation;

or (B) Offer to allow the producing agent of record of the policy to continue servicing the policy for at least 1 year and offer to pay the agent the greater of the insurer's or the corporation's usual and customary commission for the type of policy written.

If the producing agent is unwilling or unable to accept appointment, the new insurer shall pay the agent in accordance with sub-sub-sub-subparagraph (A).

Pageor 64(B) of140Offer CODING:to allow the producing agent of record to continue servicing the policy for at least 1 year and offer to pay the agent the greater of the insurer's or the corporation's usual and customary commission for the type of policy written.

If the producing agent is unwilling or unable to accept appointment for any reason, including the failure of such agent to be licensed as a surplus lines agent, the new insurer shall pay the agent in accordance with sub-sub-sub-subparagraph (A).

This sub-sub-subparagraph does not apply to an authorized Page 65 of139 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 orinsurer (B)that Offeris toan alloweligible thesurplus producinglines agentinsurer. of record to continue servicing the policy for at least 1 year and offer to pay the agent the greater of the insurer's or the corporation's usual and customary commission for the type of policy written.

If the producing agent is unwilling or unable to accept appointment, the new insurer shall pay the agent in accordance with sub-sub-sub-subparagraph (A).

With respect to commercial lines residential risks, for a new application to the corporation for coverage, if the risk is offered coverage under a policy including wind coverage from an admitted authorized insurer at its approved rate, the risk is not eligible for a policy issued by the corporation unless the premium for coverage from the admitted authorized insurer is more than 20 percent greater than the premium for comparable coverage from the corporation.

Whenever an offer of coverage for a commercial lines residential risk is received for a policyholder of the corporation at renewal from an admitted authorized insurer, the risk is not eligible for coverage with the corporation unless the premium for coverage from the admitted authorized insurer is more than 20 percent greater than the corporation's renewal premium for comparable coverage.

A policyholder removed from the Pagecorporation 65through of140an CODING:assumption agreement remains eligible for coverage from the corporation until the end of the policy term.

However, any policy removed from the corporation through an assumption agreement remains on the corporation's policy forms through the end of the policy term.

With respect to commercial lines residential risks for a new application to the corporation for coverage, if the risk is offered coverage from an eligible Page 66 of139 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 corporationsurplus throughlines aninsurer assumptionat agreementthe remainsinsurer's eligibleapproved forrate coverageunder froma thepolicy corporationincluding untilwind coverage, the endrisk ofis thenot eligible for a policy term.issued by the corporation.

However,If anyan policyoffer removedof fromcoverage for a commercial lines residential risk is received for a policyholder of the corporation throughby an assumptioneligible agreementsurplus remainslines oninsurer at renewal, the corporation'srisk policyis formsnot througheligible thefor endcoverage ofwith the policycorporation. term.

If the producing agent is unwilling or unable to accept Page 6667 of140of139 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 appointment,If the producing agent is unwilling or unable to accept appointment for any reason, including the failure of such agent to be licensed as a surplus lines agent, the new insurer shall pay the agent in accordance with sub-sub-sub-subparagraph (A).

This sub-sub-subparagraph does not apply to an authorized insurer that is an eligible surplus lines insurer.

If the producing agent is unwilling or unable to accept appointment,appointment for any reason, including the failure of such agent to be licensed as a surplus lines agent, the new insurer shall pay the agent in accordance with sub-sub-sub-subparagraph (A).

Page 68 of139 CODING:

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hb1503-01-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/HB1503 2024 This sub-sub-subparagraph does not apply to an authorized insurer that is an eligible surplus lines insurer.

The corporation may rely on a determination of comparable coverage and premium made by the producing agent who submits the application to the corporation, made in the agent's capacity as Pagethe 67corporation's of140agent. CODING:

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hb1503-02-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/HB1503 2024 the corporation's agent.

and any other form or coverage that is reasonably comparable as determinedPage by69 theof139 board.CODING:

If an application is submitted to the corporation for wind-only coverage on a risk that is located in an area eligible for coverage by the Florida Windstorm Underwriting Association, as that area was defined on January 1, 2002, the premium for the corporation's wind-only policy plus the premium for the ex-wind policy that is offered by an authorized insurer to the applicant must be compared to the premium for multiperil coverage offered by an authorized Page 68 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 insurer,determined subjectby to the standardsboard. for comparison specified in this subparagraph.

If an application is submitted to the corporation for wind-only coverage on a risk that is located in an area eligible for coverage by the Florida Windstorm Underwriting Association, as that area was defined on January 1, 2002, the premium for the corporation's wind-only policy plus the premium for the ex-wind policy that is offered by an authorized insurer to the applicant must be compared to the premium for multiperil coverage offered by an authorized insurer, subject to the standards for comparison specified in this subparagraph.

d.

If the risk could not be insured under a standard policy including wind coverage regardless of market conditions, the risk is eligible for a basic policy including wind coverage unless rejected under subparagraph 8.

The corporation shall determine the type of policy to be provided on the basis of objective standards specified in the underwriting manual and based on generally accepted underwriting practices.

A policyholder removed from the corporation through an assumption agreement does not remain eligible for coverage from the corporation after the end of the policy term for a period.

However, any policy removed from the corporation through an assumption agreement remains on the corporation's policy forms through the end of the policy term.

(I) If the risk accepts an offer of coverage through the Page 69 of140 CODING:

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hb1503-02-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/HB1503 2024 market assistance plan or through a mechanism established by the corporation other than a plan established by s.

627.3518, before a policy is issued to the risk by the corporation or during the first 30 days of coverage by the corporation, and the producing agent who submitted the application to the plan or to the corporation is not currently appointed by the insurer, the insurer shall:

(A) Pay to the producing agent of record of the policy, for the first year, an amount that is the greater of the insurer's usual and customary commission for the type of policy written or a fee equal to the usual and customary commission of the corporation;

or (B) Offer to allow the producing agent of record of the policy to continue servicing the policy for at least 1 year and offer to pay the agent the greater of the insurer's or the corporation's usual and customary commission for the type of policy written.

If the producing agent is unwilling or unable to accept appointment, the new insurer shall pay the agent in accordance with sub-sub-sub-subparagraph (A).

(II) If the corporation enters into a contractual agreement for a take-out plan, the producing agent of record of the corporation policy is entitled to retain any unearned commission on the policy, and the insurer shall:

Page 70 of140 CODING:

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hb1503-02-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/HB1503 2024 (A) Pay to the producing agent of record, for the first year, an amount that is the greater of the insurer's usual and customary commission for the type of policy written or a fee equal to the usual and customary commission of the corporation;

or (B) Offer to allow the producing agent of record to continue servicing the policy for at least 1 year and offer to pay the agent the greater of the insurer's or the corporation's usual and customary commission for the type of policy written.

If the producing agent is unwilling or unable to accept appointment, the new insurer shall pay the agent in accordance with sub-sub-sub-subparagraph (A).

for the Citizens an account which are attributable to a particular calendar year are in excess of projected losses and expenses for the Citizens account attributable to that year, suchPage excess70 shallof139 beCODING: held in surplus in the Citizens account.

Such surplus must be available to defray deficits in the Citizens that account as to future years and used for that purpose before assessing assessable insurers and assessable insureds as to any calendar year;

or b.

For the Citizens account, if established by the Page 71 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 corporation, which are attributable to a particular calendar year are in excess of projected losses and expenses for the Citizens account attributable to that year, such excess shall be held in surplus in the Citizens account.

Such surplus must be available to defray deficits in the Citizens that account as to future years and used for that purpose before assessing assessable insurers and assessable insureds as to any calendar year;

or b.

For the Citizens account, if established by the corporation, which are attributable to a particular calendar year are in excess of projected losses and expenses for the Citizens account attributable to that year, such excess shall be held in surplus in the Citizens account.

ThePage acceptance71 orof139 rejectionCODING: of a risk by the corporation shall be construed as the private placement of insurance, and the provisions of chapter 120 do not apply.

9.

Must provide that the corporation make its best efforts to procure catastrophe reinsurance at reasonable rates, to cover its projected 100-year probable maximum loss as determined by Page 72 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 The acceptance or rejection of a risk by the boardcorporation shall be construed as the private placement of governors.insurance, and the provisions of chapter 120 do not apply.

9.

Must provide that the corporation make its best efforts to procure catastrophe reinsurance at reasonable rates, to cover its projected 100-year probable maximum loss as determined by the board of governors.

The notice must also specify that acceptance of corporation coverage creates a conclusive presumption that the applicant or policyholderPage is72 awareof139 ofCODING: this potential.

12.

May establish, subject to approval by the office, different eligibility requirements and operational procedures for any line or type of coverage for any specified county or area if the board determines that such changes are justified due to the voluntary market being sufficiently stable and Page 73 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 competitivepolicyholder inis suchaware area or for such line or type of coveragethis andpotential. that consumers who, in good faith, are unable to obtain insurance through the voluntary market through ordinary methods continue to have access to coverage from the corporation.

12.

May establish, subject to approval by the office, different eligibility requirements and operational procedures for any line or type of coverage for any specified county or area if the board determines that such changes are justified due to the voluntary market being sufficiently stable and competitive in such area or for such line or type of coverage and that consumers who, in good faith, are unable to obtain insurance through the voluntary market through ordinary methods continue to have access to coverage from the corporation.

A regular assessment levied by the corporation on a limited apportionment company for a deficit incurred by the corporation for the coastal account may be paid to the corporation on a monthly basis as the assessmentsPage are73 collectedof139 byCODING: the limited apportionment company from its insureds, but a limited apportionment company must begin collecting the regular assessments not later than 90 days after the regular assessments are levied by the corporation, and the regular assessments must be paid in full within 15 months after being levied by the corporation.

A limited apportionment Page 74 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 companyassessments shallare collectcollected by the limited apportionment company from its policyholdersinsureds, anybut emergencya assessmentlimited imposedapportionment undercompany sub-subparagraphmust (b)3.e.begin collecting the regular assessments not later than 90 days after the regular assessments are levied by the corporation, and the regular assessments must be paid in full within 15 months after being levied by the corporation.

A limited apportionment company shall collect from its policyholders any emergency assessment imposed under sub-subparagraph (b)3.e.

An emergency assessment to be collected from policyholders under sub-subparagraphPage (b)5.c.74 of139 CODING:

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hb1503-01-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/HB1503 2024 sub-subparagraph (b)5.c.

626.015 by at least three insurers an insurer who are is authorized to write and are is actually writing or renewing personal lines Pageresidential 75property of140coverage, CODING:commercial residential property coverage, or commercial nonresidential property coverage within the state.

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hb1503-02-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/HB1503 2024 residential property coverage, commercial residential property coverage, or commercial nonresidential property coverage within the state.

Carports that are aluminum or carports that are not covered by the same or substantially the same materials as those ofPage the75 primaryof139 dwelling;CODING:

and c.

Patios that have a roof covering that is constructed of materials that are not the same or substantially the same materials as those of the primary dwelling.

The corporation shall make available a policy for mobile homes Page 76 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 or manufactured homes for a minimum insured value of atthe leastprimary $3,000.dwelling;

and c.

Patios that have a roof covering that is constructed of materials that are not the same or substantially the same materials as those of the primary dwelling.

The corporation shall make available a policy for mobile homes or manufactured homes for a minimum insured value of at least $3,000.

As of January 1, 2012, unless the Citizens account has been established pursuant to sub-subparagraph (b)2.b., Must require that the agent obtain from an applicant forPage coverage76 fromof139 theCODING: corporation the following an acknowledgment signed by the applicant, which includes, at a minimum, the following statement:

ACKNOWLEDGMENT OF POTENTIAL SURCHARGE AND ASSESSMENT LIABILITY:

1.

AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE Page 77 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 CORPORATION,for Icoverage UNDERSTANDfrom THATthe IFcorporation THEthe CORPORATIONfollowing SUSTAINSan Aacknowledgment DEFICITsigned ASby Athe RESULTapplicant, OFwhich HURRICANEincludes, LOSSESat ORa FORminimum, ANYthe OTHERfollowing REASON,statement: MY POLICY COULD BE SUBJECT TO SURCHARGES AND ASSESSMENTS, WHICH WILL BE DUE AND PAYABLE UPON RENEWAL, CANCELLATION, OR TERMINATION OF THE POLICY, AND THAT THE SURCHARGES AND ASSESSMENTS COULD BE AS HIGH AS 25 45 PERCENT OF MY PREMIUM, OR A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA LEGISLATURE.

ACKNOWLEDGMENT OF POTENTIAL SURCHARGE AND ASSESSMENT LIABILITY:

1.

AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON, MY POLICY COULD BE SUBJECT TO SURCHARGES AND ASSESSMENTS, WHICH WILL BE DUE AND PAYABLE UPON RENEWAL, CANCELLATION, OR TERMINATION OF THE POLICY, AND THAT THE SURCHARGES AND ASSESSMENTS COULD BE AS HIGH AS 25 45 PERCENT OF MY PREMIUM, OR A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA LEGISLATURE.

I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE CORPORATIONPage IS77 NOTof139 SUPPORTEDCODING: BY THE FULL FAITH AND CREDIT OF THE STATE OF FLORIDA.

b.

The corporation must require, if it has established the Citizens account pursuant to sub-subparagraph (b)2.b., that the agent obtain from an applicant for coverage from the corporation the following acknowledgment signed by the applicant, which Page 78 of140 CODING:

hb1503-02-c2hb1503-01-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/HB1503CS/HB1503 2024 includes,CORPORATION atIS aNOT minimum,SUPPORTED theBY followingTHE statement:FULL FAITH AND CREDIT OF THE STATE OF FLORIDA.

b.