Bill Text: FL S0076 | 2021 | Regular Session | Enrolled


Bill Title: Insurance

Spectrum: Bipartisan Bill

Status: (Passed) 2021-06-14 - Chapter No. 2021-77, companion bill(s) passed, see CS/CS/SB 1598 (Ch. 2021-104) [S0076 Detail]

Download: Florida-2021-S0076-Enrolled.html
       ENROLLED
       2021 Legislature       CS for CS for CS for SB 76, 1st Engrossed
       
       
       
       
       
       
                                                               202176er
    1  
    2         An act relating to insurance; creating s. 489.147,
    3         F.S.; providing definitions; prohibiting certain
    4         practices by contractors; providing for disciplinary
    5         proceedings; providing that the acts of any persons on
    6         behalf of a contractor are considered the acts of a
    7         contractor; providing that certain acts constitute
    8         unlicensed contracting; providing penalties;
    9         prohibiting a contractor from executing a contract
   10         with a residential property owner for a roofing repair
   11         or replacement unless certain notice is included;
   12         authorizing the residential property owner to void the
   13         contract within a specified timeframe when such notice
   14         is not included; amending s. 624.424, F.S.; requiring
   15         property insurers, effective a certain date, to
   16         include certain data regarding closed claims in their
   17         annual reports to the Office of Insurance Regulation;
   18         requiring specified insurers to provide the office
   19         with certain information under certain circumstances;
   20         requiring the office to consider certain costs in
   21         determining whether payments made by an insurer to an
   22         affiliate are fair and reasonable; amending s.
   23         626.7451, F.S.; requiring managing general agents to
   24         enter into specified contracts with insurers even when
   25         the managing general agents control, or are controlled
   26         by, the insurers; amending s. 626.7452, F.S.;
   27         providing that a managing general agent may be
   28         examined as if it were the insurer even if the
   29         managing general agent solely represents a single
   30         domestic insurer; amending s. 626.854, F.S.;
   31         prohibiting certain acts by specified licensed
   32         contractors and their subcontractors; providing
   33         construction; prohibiting certain acts by a public
   34         adjuster, public adjuster apprentice, and certain
   35         other persons; providing that certain acts constitute
   36         unlicensed practice of public adjusting; providing
   37         penalties; amending s. 626.9373, F.S.; providing for
   38         the award of reasonable attorney fees as provided by
   39         specified provisions of law under certain
   40         circumstances; amending s. 627.351, F.S.; revising a
   41         procedure that the plan of operation of Citizens
   42         Property Insurance Corporation must provide; requiring
   43         the corporation to include the costs of catastrophe
   44         reinsurance to its projected 100-year probable maximum
   45         loss in its rate calculations even if the corporation
   46         does not purchase such reinsurance; deleting obsolete
   47         language relating to the corporation’s rate filings;
   48         requiring the corporation to annually implement a rate
   49         increase that does not exceed a certain percent for
   50         specified years; requiring the corporation’s budget
   51         allocations for salaries for the corporation’s
   52         employees, all employee raises exceeding 10 percent,
   53         and an employee compensation plan for the corporation
   54         to be approved by the corporation’s board of
   55         governors; amending s. 627.3518, F.S.; conforming a
   56         cross-reference; amending s. 627.428, F.S.; providing
   57         for the award of reasonable attorney fees as provided
   58         by specified provisions of law under certain
   59         circumstances; amending s. 627.70132, F.S.; revising
   60         the definitions of the terms “reopened claim” and
   61         “supplemental claim” to include all perils; providing
   62         that claims and reopened claims, but not supplemental
   63         claims, under certain property insurance policies for
   64         loss or damage caused by perils are barred unless
   65         notice is given within a specified timeframe; revising
   66         the timeframe for providing notices of property
   67         insurance claims; providing that supplemental claims
   68         are barred under certain circumstances; providing
   69         construction; amending s. 627.7015, F.S.; conforming a
   70         provision to changes made by the act; creating s.
   71         627.70152, F.S.; providing applicability; providing
   72         definitions; requiring a claimant to provide written
   73         notice to the department before a suit is filed under
   74         an insurance policy; requiring certain information to
   75         be included in the notice; requiring a claimant to
   76         serve notice within specified time limits; requiring
   77         an insurer to provide a response to the notice within
   78         a specified timeframe; providing for tolling of time
   79         if appropriate; requiring an insurer to have a
   80         procedure for the prompt investigation, review, and
   81         evaluation of a dispute stated in the notice and to
   82         investigate each claim in the notice in accordance
   83         with the Florida Insurance Code; requiring an insurer
   84         to provide a response to the notice within a specified
   85         timeframe; requiring an insurer to provide a response
   86         in a certain manner; requiring a court to dismiss
   87         without prejudice a claimant’s suit under certain
   88         circumstances; providing that the notice and
   89         documentation are admissible as evidence only in
   90         specified proceedings; providing construction;
   91         providing that time limits are tolled under certain
   92         circumstances; providing calculations and awards of
   93         attorney fees and costs under certain circumstances;
   94         prohibiting a court from awarding attorney fees to a
   95         claimant under certain circumstances; creating s.
   96         627.70153, F.S.; requiring parties that are aware of
   97         certain residential property insurance claims to
   98         notify the court of multiple proceedings; authorizing
   99         the court to consolidate certain residential property
  100         insurance claims upon notification of any party;
  101         amending s. 628.801, F.S.; authorizing the office to
  102         request information from an insurer or its affiliates
  103         as reasonably necessary; authorizing the office to
  104         obtain certain staff to conduct an examination at an
  105         insurer’s expense; requiring insurers to pay
  106         examination expenses; giving the office the authority
  107         to examine all affiliates of an insurer as reasonably
  108         necessary to ascertain the insurer’s financial
  109         condition; prohibiting an examination of an insurer’s
  110         affiliate from extending to specified investors under
  111         certain circumstances; providing an effective date.
  112          
  113  Be It Enacted by the Legislature of the State of Florida:
  114  
  115         Section 1. Section 489.147, Florida Statutes, is created to
  116  read:
  117         489.147 Prohibited property insurance practices.—
  118         (1) As used in this section, the term:
  119         (a) “Prohibited advertisement” means any written or
  120  electronic communication by a contractor that encourages,
  121  instructs, or induces a consumer to contact a contractor or
  122  public adjuster for the purpose of making an insurance claim for
  123  roof damage. The term includes, but is not limited to, door
  124  hangers, business cards, magnets, flyers, pamphlets, and e
  125  mails.
  126         (b) “Soliciting” means contacting:
  127         1. In person;
  128         2. By electronic means, including, but not limited to, e
  129  mail, telephone, and any other real-time communication directed
  130  to a specific person; or
  131         3. By delivery to a specific person.
  132         (2) A contractor may not directly or indirectly engage in
  133  any of the following practices:
  134         (a) Soliciting a residential property owner by means of a
  135  prohibited advertisement.
  136         (b) Offering to a residential property owner a rebate,
  137  gift, gift card, cash, coupon, waiver of any insurance
  138  deductible, or any other thing of value in exchange for:
  139         1. Allowing the contractor to conduct an inspection of the
  140  residential property owner’s roof; or
  141         2. Making an insurance claim for damage to the residential
  142  property owner’s roof.
  143         (c) Offering, delivering, receiving, or accepting any
  144  compensation, inducement, or reward, for the referral of any
  145  services for which property insurance proceeds are payable.
  146  Payment by the residential property owner or insurance company
  147  to a contractor for roofing services rendered does not
  148  constitute compensation for a referral.
  149         (d) Interpreting policy provisions or advising an insured
  150  regarding coverages or duties under the insured’s property
  151  insurance policy or adjusting a property insurance claim on
  152  behalf of the insured, unless the contractor holds a license as
  153  a public adjuster pursuant to part VI of chapter 626.
  154         (e) Providing an insured with an agreement authorizing
  155  repairs without providing a good faith estimate of the itemized
  156  and detailed cost of services and materials for repairs
  157  undertaken pursuant to a property insurance claim. A contractor
  158  does not violate this paragraph if, as a result of the process
  159  of the insurer adjusting a claim, the actual cost of repairs
  160  differs from the initial estimate.
  161         (3) A contractor who violates this section is subject to
  162  disciplinary proceedings as set forth in s. 489.129. A
  163  contractor may receive up to a $10,000 fine for each violation
  164  of this section.
  165         (4) For the purposes of this section:
  166         (a) The acts of any person on behalf of a contractor,
  167  including, but not limited to, the acts of a compensated
  168  employee or a nonemployee who is compensated for soliciting,
  169  shall be considered the actions of the contractor.
  170         (b) An unlicensed person who engages in an act prohibited
  171  by this section is guilty of unlicensed contracting and is
  172  subject to the penalties set forth in s. 489.13. Notwithstanding
  173  s. 489.13(3), an unlicensed person who violates this section may
  174  be fined up to $10,000 for each violation.
  175         (5) A contractor may not execute a contract with a
  176  residential property owner to repair or replace a roof without
  177  including a notice that the contractor may not engage in the
  178  practices set forth in paragraph (2)(b). If the contractor fails
  179  to include such notice, the residential property owner may void
  180  the contract within 10 days after executing it.
  181         Section 2. Subsection (11) of section 624.424, Florida
  182  Statutes, is renumbered as subsection (12), and a new subsection
  183  (11) and subsection (13) are added to that section, to read:
  184         624.424 Annual statement and other information.—
  185         (11) Beginning January 1, 2022, each authorized insurer or
  186  insurer group issuing personal lines or commercial lines
  187  residential property insurance policies in this state shall file
  188  with the office on an annual basis in conjunction with the
  189  statements required by paragraph (1)(a) a supplemental report on
  190  an individual and group basis for closed claims. The report must
  191  be on a form prescribed by the commission and must include the
  192  following information for each claim closed, excluding liability
  193  only claims, within the reporting period in this state:
  194         (a) The unique claim identification number.
  195         (b) The type of policy.
  196         (c) The zip code of the property where the claim occurred.
  197         (d) The county where the claim occurred.
  198         (e) The date of loss.
  199         (f) The peril or type of loss, including information about:
  200         1. The types of vendors used for mitigation, repair, or
  201  replacement; and
  202         2. The names of vendors used, if known.
  203         (g) The date the claim was reported to insurer.
  204         (h) The initial date the claim was closed, including
  205  information about whether the claim was closed with or without
  206  payment.
  207         (i) The date the claim was most recently reopened, if
  208  applicable.
  209         (j) The date a supplemental claim was filed, if applicable.
  210         (k) The date the claim was most recently closed, if
  211  different from the initial date the claim was closed.
  212         (l) The name of the public adjuster on the claim, if any.
  213         (m) The Florida Bar number and name of the attorney for the
  214  claimant, if any.
  215         (n) The total indemnity paid by the insurer.
  216         (o) The total loss adjustment expenses paid by the insurer.
  217         (p) The amount paid for claimant’s attorney fees, if any.
  218         (q) The amount paid in costs for claimant’s attorney’s
  219  expenses, including, but not limited to, expert witness fees.
  220         (r) The contingency risk multiplier, if any, that the
  221  claimant’s attorney requested to be applied in calculating the
  222  attorney fees awarded to the claimant’s attorney.
  223         (s) The contingency risk multiplier, if any, that a court
  224  applied in calculating the attorney fees awarded to the
  225  claimant’s attorney.
  226         (t) Any other information deemed necessary by the
  227  commission to provide the office with the ability to track
  228  litigation and claims trends occurring in the property market.
  229         (13) Each insurer doing business in this state which pays a
  230  fee, commission, or other financial consideration or payment to
  231  any affiliate directly or indirectly is required upon request to
  232  provide to the office any information the office deems
  233  necessary. The fee, commission, or other financial consideration
  234  or payment to any affiliate must be fair and reasonable. In
  235  determining whether the fee, commission, or other financial
  236  consideration or payment is fair and reasonable, the office
  237  shall consider, among other things, the actual cost of the
  238  service being provided.
  239         Section 3. Subsection (6) of section 626.7451, Florida
  240  Statutes, is amended to read:
  241         626.7451 Managing general agents; required contract
  242  provisions.—No person acting in the capacity of a managing
  243  general agent shall place business with an insurer unless there
  244  is in force a written contract between the parties which sets
  245  forth the responsibility for a particular function, specifies
  246  the division of responsibilities, and contains the following
  247  minimum provisions:
  248         (6) The contract shall specify appropriate underwriting
  249  guidelines, including:
  250         (a) The maximum annual premium volume.
  251         (b) The basis of the rates to be charged.
  252         (c) The types of risks which may be written.
  253         (d) Maximum limits of liability.
  254         (e) Applicable exclusions.
  255         (f) Territorial limitations.
  256         (g) Policy cancellation provisions.
  257         (h) The maximum policy period.
  258  
  259  This subsection shall not apply when the managing general agent
  260  is a controlled or controlling person.
  261  
  262  For the purposes of this section and ss. 626.7453 and 626.7454,
  263  the term “controlling person” or “controlling” has the meaning
  264  set forth in s. 625.012(5)(b)1., and the term “controlled
  265  person” or “controlled” has the meaning set forth in s.
  266  625.012(5)(b)2.
  267         Section 4. Section 626.7452, Florida Statutes, is amended
  268  to read:
  269         626.7452 Managing general agents; examination authority.
  270  The acts of the managing general agent are considered to be the
  271  acts of the insurer on whose behalf it is acting. A managing
  272  general agent may be examined as if it were the insurer except
  273  in the case where the managing general agent solely represents a
  274  single domestic insurer.
  275         Section 5. Subsection (15) of section 626.854, Florida
  276  Statutes, is amended, and subsection (20) is added to that
  277  section, to read:
  278         626.854 “Public adjuster” defined; prohibitions.—The
  279  legislature finds that it is necessary for the protection of the
  280  public to regulate public insurance adjusters and to prevent the
  281  unauthorized practice of law.
  282         (15) A licensed contractor under part I of chapter 489, or
  283  a subcontractor of such licensee, may not advertise, solicit,
  284  offer to handle, handle, or perform public adjuster services as
  285  provided in subsection (1) adjust a claim on behalf of an
  286  insured unless licensed and compliant as a public adjuster under
  287  this chapter. The prohibition against solicitation does not
  288  preclude a contractor from suggesting or otherwise recommending
  289  to a consumer that the consumer consider contacting his or her
  290  insurer to determine if the proposed repair is covered under the
  291  consumer’s insurance policy, except as it relates to
  292  solicitation prohibited in s. 489.147. In addition However, the
  293  contractor may discuss or explain a bid for construction or
  294  repair of covered property with the residential property owner
  295  who has suffered loss or damage covered by a property insurance
  296  policy, or the insurer of such property, if the contractor is
  297  doing so for the usual and customary fees applicable to the work
  298  to be performed as stated in the contract between the contractor
  299  and the insured.
  300         (20)(a) Any following act by a public adjuster, a public
  301  adjuster apprentice, or a person acting on behalf of a public
  302  adjuster or public adjuster apprentice is prohibited and shall
  303  result in discipline as applicable under part VI of this
  304  chapter:
  305         1. Offering to a residential property owner a rebate, gift,
  306  gift card, cash, coupon, waiver of any insurance deductible, or
  307  any other thing of value in exchange for:
  308         a. Allowing a contractor, a public adjuster, a public
  309  adjuster apprentice, or a person acting on behalf of a public
  310  adjuster or public adjuster apprentice to conduct an inspection
  311  of the residential property owner’s roof; or
  312         b. Making an insurance claim for damage to the residential
  313  property owner’s roof.
  314         2. Offering, delivering, receiving, or accepting any
  315  compensation, inducement, or reward for the referral of any
  316  services for which property insurance proceeds would be used for
  317  roofing repairs or replacement.
  318         (b) Notwithstanding the fine set forth in s. 626.8698, a
  319  public adjuster or public adjuster apprentice may be subject to
  320  a fine not to exceed $10,000 per act for a violation of this
  321  subsection.
  322         (c) A person who engages in an act prohibited by this
  323  subsection and who is not a public adjuster or a public adjuster
  324  apprentice, or is not otherwise exempt from licensure, is guilty
  325  of the unlicensed practice of public adjusting and may be:
  326         1. Subject to all applicable penalties set forth in part VI
  327  of this chapter.
  328         2. Notwithstanding subparagraph 1., subject to a fine not
  329  to exceed $10,000 per act for a violation of this subsection.
  330         Section 6. Subsection (1) of section 626.9373, Florida
  331  Statutes, is amended to read:
  332         626.9373 Attorney’s fees.—
  333         (1) Upon the rendition of a judgment or decree by any court
  334  of this state against a surplus lines insurer in favor of any
  335  named or omnibus insured or the named beneficiary under a policy
  336  or contract executed by the insurer on or after the effective
  337  date of this act, the trial court or, if the insured or
  338  beneficiary prevails on appeal, the appellate court, shall
  339  adjudge or decree against the insurer in favor of the insured or
  340  beneficiary a reasonable sum as fees or compensation for the
  341  insured’s or beneficiary’s attorney prosecuting the lawsuit for
  342  which recovery is awarded. In a suit arising under a residential
  343  or commercial property insurance policy not brought by an
  344  assignee, the amount of reasonable attorney fees shall be
  345  awarded only as provided in s. 57.105 or s. 627.70152, as
  346  applicable.
  347         Section 7. Paragraphs (c) and (n) of subsection (6) of
  348  section 627.351, Florida Statutes, are amended, and paragraph
  349  (jj) is added to subsection (6) of that section, to read:
  350         627.351 Insurance risk apportionment plans.—
  351         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
  352         (c) The corporation’s plan of operation:
  353         1. Must provide for adoption of residential property and
  354  casualty insurance policy forms and commercial residential and
  355  nonresidential property insurance forms, which must be approved
  356  by the office before use. The corporation shall adopt the
  357  following policy forms:
  358         a. Standard personal lines policy forms that are
  359  comprehensive multiperil policies providing full coverage of a
  360  residential property equivalent to the coverage provided in the
  361  private insurance market under an HO-3, HO-4, or HO-6 policy.
  362         b. Basic personal lines policy forms that are policies
  363  similar to an HO-8 policy or a dwelling fire policy that provide
  364  coverage meeting the requirements of the secondary mortgage
  365  market, but which is more limited than the coverage under a
  366  standard policy.
  367         c. Commercial lines residential and nonresidential policy
  368  forms that are generally similar to the basic perils of full
  369  coverage obtainable for commercial residential structures and
  370  commercial nonresidential structures in the admitted voluntary
  371  market.
  372         d. Personal lines and commercial lines residential property
  373  insurance forms that cover the peril of wind only. The forms are
  374  applicable only to residential properties located in areas
  375  eligible for coverage under the coastal account referred to in
  376  sub-subparagraph (b)2.a.
  377         e. Commercial lines nonresidential property insurance forms
  378  that cover the peril of wind only. The forms are applicable only
  379  to nonresidential properties located in areas eligible for
  380  coverage under the coastal account referred to in sub
  381  subparagraph (b)2.a.
  382         f. The corporation may adopt variations of the policy forms
  383  listed in sub-subparagraphs a.-e. which contain more restrictive
  384  coverage.
  385         g. Effective January 1, 2013, the corporation shall offer a
  386  basic personal lines policy similar to an HO-8 policy with
  387  dwelling repair based on common construction materials and
  388  methods.
  389         2. Must provide that the corporation adopt a program in
  390  which the corporation and authorized insurers enter into quota
  391  share primary insurance agreements for hurricane coverage, as
  392  defined in s. 627.4025(2)(a), for eligible risks, and adopt
  393  property insurance forms for eligible risks which cover the
  394  peril of wind only.
  395         a. As used in this subsection, the term:
  396         (I) “Quota share primary insurance” means an arrangement in
  397  which the primary hurricane coverage of an eligible risk is
  398  provided in specified percentages by the corporation and an
  399  authorized insurer. The corporation and authorized insurer are
  400  each solely responsible for a specified percentage of hurricane
  401  coverage of an eligible risk as set forth in a quota share
  402  primary insurance agreement between the corporation and an
  403  authorized insurer and the insurance contract. The
  404  responsibility of the corporation or authorized insurer to pay
  405  its specified percentage of hurricane losses of an eligible
  406  risk, as set forth in the agreement, may not be altered by the
  407  inability of the other party to pay its specified percentage of
  408  losses. Eligible risks that are provided hurricane coverage
  409  through a quota share primary insurance arrangement must be
  410  provided policy forms that set forth the obligations of the
  411  corporation and authorized insurer under the arrangement,
  412  clearly specify the percentages of quota share primary insurance
  413  provided by the corporation and authorized insurer, and
  414  conspicuously and clearly state that the authorized insurer and
  415  the corporation may not be held responsible beyond their
  416  specified percentage of coverage of hurricane losses.
  417         (II) “Eligible risks” means personal lines residential and
  418  commercial lines residential risks that meet the underwriting
  419  criteria of the corporation and are located in areas that were
  420  eligible for coverage by the Florida Windstorm Underwriting
  421  Association on January 1, 2002.
  422         b. The corporation may enter into quota share primary
  423  insurance agreements with authorized insurers at corporation
  424  coverage levels of 90 percent and 50 percent.
  425         c. If the corporation determines that additional coverage
  426  levels are necessary to maximize participation in quota share
  427  primary insurance agreements by authorized insurers, the
  428  corporation may establish additional coverage levels. However,
  429  the corporation’s quota share primary insurance coverage level
  430  may not exceed 90 percent.
  431         d. Any quota share primary insurance agreement entered into
  432  between an authorized insurer and the corporation must provide
  433  for a uniform specified percentage of coverage of hurricane
  434  losses, by county or territory as set forth by the corporation
  435  board, for all eligible risks of the authorized insurer covered
  436  under the agreement.
  437         e. Any quota share primary insurance agreement entered into
  438  between an authorized insurer and the corporation is subject to
  439  review and approval by the office. However, such agreement shall
  440  be authorized only as to insurance contracts entered into
  441  between an authorized insurer and an insured who is already
  442  insured by the corporation for wind coverage.
  443         f. For all eligible risks covered under quota share primary
  444  insurance agreements, the exposure and coverage levels for both
  445  the corporation and authorized insurers shall be reported by the
  446  corporation to the Florida Hurricane Catastrophe Fund. For all
  447  policies of eligible risks covered under such agreements, the
  448  corporation and the authorized insurer must maintain complete
  449  and accurate records for the purpose of exposure and loss
  450  reimbursement audits as required by fund rules. The corporation
  451  and the authorized insurer shall each maintain duplicate copies
  452  of policy declaration pages and supporting claims documents.
  453         g. The corporation board shall establish in its plan of
  454  operation standards for quota share agreements which ensure that
  455  there is no discriminatory application among insurers as to the
  456  terms of the agreements, pricing of the agreements, incentive
  457  provisions if any, and consideration paid for servicing policies
  458  or adjusting claims.
  459         h. The quota share primary insurance agreement between the
  460  corporation and an authorized insurer must set forth the
  461  specific terms under which coverage is provided, including, but
  462  not limited to, the sale and servicing of policies issued under
  463  the agreement by the insurance agent of the authorized insurer
  464  producing the business, the reporting of information concerning
  465  eligible risks, the payment of premium to the corporation, and
  466  arrangements for the adjustment and payment of hurricane claims
  467  incurred on eligible risks by the claims adjuster and personnel
  468  of the authorized insurer. Entering into a quota sharing
  469  insurance agreement between the corporation and an authorized
  470  insurer is voluntary and at the discretion of the authorized
  471  insurer.
  472         3. May provide that the corporation may employ or otherwise
  473  contract with individuals or other entities to provide
  474  administrative or professional services that may be appropriate
  475  to effectuate the plan. The corporation may borrow funds by
  476  issuing bonds or by incurring other indebtedness, and shall have
  477  other powers reasonably necessary to effectuate the requirements
  478  of this subsection, including, without limitation, the power to
  479  issue bonds and incur other indebtedness in order to refinance
  480  outstanding bonds or other indebtedness. The corporation may
  481  seek judicial validation of its bonds or other indebtedness
  482  under chapter 75. The corporation may issue bonds or incur other
  483  indebtedness, or have bonds issued on its behalf by a unit of
  484  local government pursuant to subparagraph (q)2. in the absence
  485  of a hurricane or other weather-related event, upon a
  486  determination by the corporation, subject to approval by the
  487  office, that such action would enable it to efficiently meet the
  488  financial obligations of the corporation and that such
  489  financings are reasonably necessary to effectuate the
  490  requirements of this subsection. The corporation may take all
  491  actions needed to facilitate tax-free status for such bonds or
  492  indebtedness, including formation of trusts or other affiliated
  493  entities. The corporation may pledge assessments, projected
  494  recoveries from the Florida Hurricane Catastrophe Fund, other
  495  reinsurance recoverables, policyholder surcharges and other
  496  surcharges, and other funds available to the corporation as
  497  security for bonds or other indebtedness. In recognition of s.
  498  10, Art. I of the State Constitution, prohibiting the impairment
  499  of obligations of contracts, it is the intent of the Legislature
  500  that no action be taken whose purpose is to impair any bond
  501  indenture or financing agreement or any revenue source committed
  502  by contract to such bond or other indebtedness.
  503         4. Must require that the corporation operate subject to the
  504  supervision and approval of a board of governors consisting of
  505  nine individuals who are residents of this state and who are
  506  from different geographical areas of the state, one of whom is
  507  appointed by the Governor and serves solely to advocate on
  508  behalf of the consumer. The appointment of a consumer
  509  representative by the Governor is deemed to be within the scope
  510  of the exemption provided in s. 112.313(7)(b) and is in addition
  511  to the appointments authorized under sub-subparagraph a.
  512         a. The Governor, the Chief Financial Officer, the President
  513  of the Senate, and the Speaker of the House of Representatives
  514  shall each appoint two members of the board. At least one of the
  515  two members appointed by each appointing officer must have
  516  demonstrated expertise in insurance and be deemed to be within
  517  the scope of the exemption provided in s. 112.313(7)(b). The
  518  Chief Financial Officer shall designate one of the appointees as
  519  chair. All board members serve at the pleasure of the appointing
  520  officer. All members of the board are subject to removal at will
  521  by the officers who appointed them. All board members, including
  522  the chair, must be appointed to serve for 3-year terms beginning
  523  annually on a date designated by the plan. However, for the
  524  first term beginning on or after July 1, 2009, each appointing
  525  officer shall appoint one member of the board for a 2-year term
  526  and one member for a 3-year term. A board vacancy shall be
  527  filled for the unexpired term by the appointing officer. The
  528  Chief Financial Officer shall appoint a technical advisory group
  529  to provide information and advice to the board in connection
  530  with the board’s duties under this subsection. The executive
  531  director and senior managers of the corporation shall be engaged
  532  by the board and serve at the pleasure of the board. Any
  533  executive director appointed on or after July 1, 2006, is
  534  subject to confirmation by the Senate. The executive director is
  535  responsible for employing other staff as the corporation may
  536  require, subject to review and concurrence by the board.
  537         b. The board shall create a Market Accountability Advisory
  538  Committee to assist the corporation in developing awareness of
  539  its rates and its customer and agent service levels in
  540  relationship to the voluntary market insurers writing similar
  541  coverage.
  542         (I) The members of the advisory committee consist of the
  543  following 11 persons, one of whom must be elected chair by the
  544  members of the committee: four representatives, one appointed by
  545  the Florida Association of Insurance Agents, one by the Florida
  546  Association of Insurance and Financial Advisors, one by the
  547  Professional Insurance Agents of Florida, and one by the Latin
  548  American Association of Insurance Agencies; three
  549  representatives appointed by the insurers with the three highest
  550  voluntary market share of residential property insurance
  551  business in the state; one representative from the Office of
  552  Insurance Regulation; one consumer appointed by the board who is
  553  insured by the corporation at the time of appointment to the
  554  committee; one representative appointed by the Florida
  555  Association of Realtors; and one representative appointed by the
  556  Florida Bankers Association. All members shall be appointed to
  557  3-year terms and may serve for consecutive terms.
  558         (II) The committee shall report to the corporation at each
  559  board meeting on insurance market issues which may include rates
  560  and rate competition with the voluntary market; service,
  561  including policy issuance, claims processing, and general
  562  responsiveness to policyholders, applicants, and agents; and
  563  matters relating to depopulation.
  564         5. Must provide a procedure for determining the eligibility
  565  of a risk for coverage, as follows:
  566         a. Subject to s. 627.3517, with respect to personal lines
  567  residential risks, if the risk is offered coverage from an
  568  authorized insurer at the insurer’s approved rate under a
  569  standard policy including wind coverage or, if consistent with
  570  the insurer’s underwriting rules as filed with the office, a
  571  basic policy including wind coverage, for a new application to
  572  the corporation for coverage, the risk is not eligible for any
  573  policy issued by the corporation unless the premium for coverage
  574  from the authorized insurer is more than 20 15 percent greater
  575  than the premium for comparable coverage from the corporation.
  576  Whenever an offer of coverage for a personal lines residential
  577  risk is received for a policyholder of the corporation at
  578  renewal from an authorized insurer, if the offer is equal to or
  579  less than the corporation’s renewal premium for comparable
  580  coverage, the risk is not eligible for coverage with the
  581  corporation. If the risk is not able to obtain such offer, the
  582  risk is eligible for a standard policy including wind coverage
  583  or a basic policy including wind coverage issued by the
  584  corporation; however, if the risk could not be insured under a
  585  standard policy including wind coverage regardless of market
  586  conditions, the risk is eligible for a basic policy including
  587  wind coverage unless rejected under subparagraph 8. However, a
  588  policyholder removed from the corporation through an assumption
  589  agreement remains eligible for coverage from the corporation
  590  until the end of the assumption period. The corporation shall
  591  determine the type of policy to be provided on the basis of
  592  objective standards specified in the underwriting manual and
  593  based on generally accepted underwriting practices.
  594         (I) If the risk accepts an offer of coverage through the
  595  market assistance plan or through a mechanism established by the
  596  corporation other than a plan established by s. 627.3518, before
  597  a policy is issued to the risk by the corporation or during the
  598  first 30 days of coverage by the corporation, and the producing
  599  agent who submitted the application to the plan or to the
  600  corporation is not currently appointed by the insurer, the
  601  insurer shall:
  602         (A) Pay to the producing agent of record of the policy for
  603  the first year, an amount that is the greater of the insurer’s
  604  usual and customary commission for the type of policy written or
  605  a fee equal to the usual and customary commission of the
  606  corporation; or
  607         (B) Offer to allow the producing agent of record of the
  608  policy to continue servicing the policy for at least 1 year and
  609  offer to pay the agent the greater of the insurer’s or the
  610  corporation’s usual and customary commission for the type of
  611  policy written.
  612  
  613  If the producing agent is unwilling or unable to accept
  614  appointment, the new insurer shall pay the agent in accordance
  615  with sub-sub-sub-subparagraph (A).
  616         (II) If the corporation enters into a contractual agreement
  617  for a take-out plan, the producing agent of record of the
  618  corporation policy is entitled to retain any unearned commission
  619  on the policy, and the insurer shall:
  620         (A) Pay to the producing agent of record, for the first
  621  year, an amount that is the greater of the insurer’s usual and
  622  customary commission for the type of policy written or a fee
  623  equal to the usual and customary commission of the corporation;
  624  or
  625         (B) Offer to allow the producing agent of record to
  626  continue servicing the policy for at least 1 year and offer to
  627  pay the agent the greater of the insurer’s or the corporation’s
  628  usual and customary commission for the type of policy written.
  629  
  630  If the producing agent is unwilling or unable to accept
  631  appointment, the new insurer shall pay the agent in accordance
  632  with sub-sub-sub-subparagraph (A).
  633         b. With respect to commercial lines residential risks, for
  634  a new application to the corporation for coverage, if the risk
  635  is offered coverage under a policy including wind coverage from
  636  an authorized insurer at its approved rate, the risk is not
  637  eligible for a policy issued by the corporation unless the
  638  premium for coverage from the authorized insurer is more than 15
  639  percent greater than the premium for comparable coverage from
  640  the corporation. Whenever an offer of coverage for a commercial
  641  lines residential risk is received for a policyholder of the
  642  corporation at renewal from an authorized insurer, if the offer
  643  is equal to or less than the corporation’s renewal premium for
  644  comparable coverage, the risk is not eligible for coverage with
  645  the corporation. If the risk is not able to obtain any such
  646  offer, the risk is eligible for a policy including wind coverage
  647  issued by the corporation. However, a policyholder removed from
  648  the corporation through an assumption agreement remains eligible
  649  for coverage from the corporation until the end of the
  650  assumption period.
  651         (I) If the risk accepts an offer of coverage through the
  652  market assistance plan or through a mechanism established by the
  653  corporation other than a plan established by s. 627.3518, before
  654  a policy is issued to the risk by the corporation or during the
  655  first 30 days of coverage by the corporation, and the producing
  656  agent who submitted the application to the plan or the
  657  corporation is not currently appointed by the insurer, the
  658  insurer shall:
  659         (A) Pay to the producing agent of record of the policy, for
  660  the first year, an amount that is the greater of the insurer’s
  661  usual and customary commission for the type of policy written or
  662  a fee equal to the usual and customary commission of the
  663  corporation; or
  664         (B) Offer to allow the producing agent of record of the
  665  policy to continue servicing the policy for at least 1 year and
  666  offer to pay the agent the greater of the insurer’s or the
  667  corporation’s usual and customary commission for the type of
  668  policy written.
  669  
  670  If the producing agent is unwilling or unable to accept
  671  appointment, the new insurer shall pay the agent in accordance
  672  with sub-sub-sub-subparagraph (A).
  673         (II) If the corporation enters into a contractual agreement
  674  for a take-out plan, the producing agent of record of the
  675  corporation policy is entitled to retain any unearned commission
  676  on the policy, and the insurer shall:
  677         (A) Pay to the producing agent of record, for the first
  678  year, an amount that is the greater of the insurer’s usual and
  679  customary commission for the type of policy written or a fee
  680  equal to the usual and customary commission of the corporation;
  681  or
  682         (B) Offer to allow the producing agent of record to
  683  continue servicing the policy for at least 1 year and offer to
  684  pay the agent the greater of the insurer’s or the corporation’s
  685  usual and customary commission for the type of policy written.
  686  
  687  If the producing agent is unwilling or unable to accept
  688  appointment, the new insurer shall pay the agent in accordance
  689  with sub-sub-sub-subparagraph (A).
  690         c. For purposes of determining comparable coverage under
  691  sub-subparagraphs a. and b., the comparison must be based on
  692  those forms and coverages that are reasonably comparable. The
  693  corporation may rely on a determination of comparable coverage
  694  and premium made by the producing agent who submits the
  695  application to the corporation, made in the agent’s capacity as
  696  the corporation’s agent. A comparison may be made solely of the
  697  premium with respect to the main building or structure only on
  698  the following basis: the same coverage A or other building
  699  limits; the same percentage hurricane deductible that applies on
  700  an annual basis or that applies to each hurricane for commercial
  701  residential property; the same percentage of ordinance and law
  702  coverage, if the same limit is offered by both the corporation
  703  and the authorized insurer; the same mitigation credits, to the
  704  extent the same types of credits are offered both by the
  705  corporation and the authorized insurer; the same method for loss
  706  payment, such as replacement cost or actual cash value, if the
  707  same method is offered both by the corporation and the
  708  authorized insurer in accordance with underwriting rules; and
  709  any other form or coverage that is reasonably comparable as
  710  determined by the board. If an application is submitted to the
  711  corporation for wind-only coverage in the coastal account, the
  712  premium for the corporation’s wind-only policy plus the premium
  713  for the ex-wind policy that is offered by an authorized insurer
  714  to the applicant must be compared to the premium for multiperil
  715  coverage offered by an authorized insurer, subject to the
  716  standards for comparison specified in this subparagraph. If the
  717  corporation or the applicant requests from the authorized
  718  insurer a breakdown of the premium of the offer by types of
  719  coverage so that a comparison may be made by the corporation or
  720  its agent and the authorized insurer refuses or is unable to
  721  provide such information, the corporation may treat the offer as
  722  not being an offer of coverage from an authorized insurer at the
  723  insurer’s approved rate.
  724         6. Must include rules for classifications of risks and
  725  rates.
  726         7. Must provide that if premium and investment income for
  727  an account attributable to a particular calendar year are in
  728  excess of projected losses and expenses for the account
  729  attributable to that year, such excess shall be held in surplus
  730  in the account. Such surplus must be available to defray
  731  deficits in that account as to future years and used for that
  732  purpose before assessing assessable insurers and assessable
  733  insureds as to any calendar year.
  734         8. Must provide objective criteria and procedures to be
  735  uniformly applied to all applicants in determining whether an
  736  individual risk is so hazardous as to be uninsurable. In making
  737  this determination and in establishing the criteria and
  738  procedures, the following must be considered:
  739         a. Whether the likelihood of a loss for the individual risk
  740  is substantially higher than for other risks of the same class;
  741  and
  742         b. Whether the uncertainty associated with the individual
  743  risk is such that an appropriate premium cannot be determined.
  744  
  745  The acceptance or rejection of a risk by the corporation shall
  746  be construed as the private placement of insurance, and the
  747  provisions of chapter 120 do not apply.
  748         9. Must provide that the corporation make its best efforts
  749  to procure catastrophe reinsurance at reasonable rates, to cover
  750  its projected 100-year probable maximum loss as determined by
  751  the board of governors. If catastrophe reinsurance is not
  752  available at reasonable rates, the corporation need not purchase
  753  it, but the corporation shall include the costs of reinsurance
  754  to cover its projected 100-year probable maximum loss in its
  755  rate calculations even if it does not purchase catastrophe
  756  reinsurance.
  757         10. The policies issued by the corporation must provide
  758  that if the corporation or the market assistance plan obtains an
  759  offer from an authorized insurer to cover the risk at its
  760  approved rates, the risk is no longer eligible for renewal
  761  through the corporation, except as otherwise provided in this
  762  subsection.
  763         11. Corporation policies and applications must include a
  764  notice that the corporation policy could, under this section, be
  765  replaced with a policy issued by an authorized insurer which
  766  does not provide coverage identical to the coverage provided by
  767  the corporation. The notice must also specify that acceptance of
  768  corporation coverage creates a conclusive presumption that the
  769  applicant or policyholder is aware of this potential.
  770         12. May establish, subject to approval by the office,
  771  different eligibility requirements and operational procedures
  772  for any line or type of coverage for any specified county or
  773  area if the board determines that such changes are justified due
  774  to the voluntary market being sufficiently stable and
  775  competitive in such area or for such line or type of coverage
  776  and that consumers who, in good faith, are unable to obtain
  777  insurance through the voluntary market through ordinary methods
  778  continue to have access to coverage from the corporation. If
  779  coverage is sought in connection with a real property transfer,
  780  the requirements and procedures may not provide an effective
  781  date of coverage later than the date of the closing of the
  782  transfer as established by the transferor, the transferee, and,
  783  if applicable, the lender.
  784         13. Must provide that, with respect to the coastal account,
  785  any assessable insurer with a surplus as to policyholders of $25
  786  million or less writing 25 percent or more of its total
  787  countrywide property insurance premiums in this state may
  788  petition the office, within the first 90 days of each calendar
  789  year, to qualify as a limited apportionment company. A regular
  790  assessment levied by the corporation on a limited apportionment
  791  company for a deficit incurred by the corporation for the
  792  coastal account may be paid to the corporation on a monthly
  793  basis as the assessments are collected by the limited
  794  apportionment company from its insureds, but a limited
  795  apportionment company must begin collecting the regular
  796  assessments not later than 90 days after the regular assessments
  797  are levied by the corporation, and the regular assessments must
  798  be paid in full within 15 months after being levied by the
  799  corporation. A limited apportionment company shall collect from
  800  its policyholders any emergency assessment imposed under sub
  801  subparagraph (b)3.d. The plan must provide that, if the office
  802  determines that any regular assessment will result in an
  803  impairment of the surplus of a limited apportionment company,
  804  the office may direct that all or part of such assessment be
  805  deferred as provided in subparagraph (q)4. However, an emergency
  806  assessment to be collected from policyholders under sub
  807  subparagraph (b)3.d. may not be limited or deferred.
  808         14. Must provide that the corporation appoint as its
  809  licensed agents only those agents who throughout such
  810  appointments also hold an appointment as defined in s. 626.015
  811  by an insurer who is authorized to write and is actually writing
  812  or renewing personal lines residential property coverage,
  813  commercial residential property coverage, or commercial
  814  nonresidential property coverage within the state.
  815         15. Must provide a premium payment plan option to its
  816  policyholders which, at a minimum, allows for quarterly and
  817  semiannual payment of premiums. A monthly payment plan may, but
  818  is not required to, be offered.
  819         16. Must limit coverage on mobile homes or manufactured
  820  homes built before 1994 to actual cash value of the dwelling
  821  rather than replacement costs of the dwelling.
  822         17. Must provide coverage for manufactured or mobile home
  823  dwellings. Such coverage must also include the following
  824  attached structures:
  825         a. Screened enclosures that are aluminum framed or screened
  826  enclosures that are not covered by the same or substantially the
  827  same materials as those of the primary dwelling;
  828         b. Carports that are aluminum or carports that are not
  829  covered by the same or substantially the same materials as those
  830  of the primary dwelling; and
  831         c. Patios that have a roof covering that is constructed of
  832  materials that are not the same or substantially the same
  833  materials as those of the primary dwelling.
  834  
  835  The corporation shall make available a policy for mobile homes
  836  or manufactured homes for a minimum insured value of at least
  837  $3,000.
  838         18. May provide such limits of coverage as the board
  839  determines, consistent with the requirements of this subsection.
  840         19. May require commercial property to meet specified
  841  hurricane mitigation construction features as a condition of
  842  eligibility for coverage.
  843         20. Must provide that new or renewal policies issued by the
  844  corporation on or after January 1, 2012, which cover sinkhole
  845  loss do not include coverage for any loss to appurtenant
  846  structures, driveways, sidewalks, decks, or patios that are
  847  directly or indirectly caused by sinkhole activity. The
  848  corporation shall exclude such coverage using a notice of
  849  coverage change, which may be included with the policy renewal,
  850  and not by issuance of a notice of nonrenewal of the excluded
  851  coverage upon renewal of the current policy.
  852         21. As of January 1, 2012, must require that the agent
  853  obtain from an applicant for coverage from the corporation an
  854  acknowledgment signed by the applicant, which includes, at a
  855  minimum, the following statement:
  856  
  857                ACKNOWLEDGMENT OF POTENTIAL SURCHARGE              
  858                      AND ASSESSMENT LIABILITY:                    
  859  
  860         1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
  861  CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
  862  DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
  863  MY POLICY COULD BE SUBJECT TO SURCHARGES, WHICH WILL BE DUE AND
  864  PAYABLE UPON RENEWAL, CANCELLATION, OR TERMINATION OF THE
  865  POLICY, AND THAT THE SURCHARGES COULD BE AS HIGH AS 45 PERCENT
  866  OF MY PREMIUM, OR A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA
  867  LEGISLATURE.
  868         2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
  869  SURCHARGE, WHICH COULD BE AS HIGH AS 45 PERCENT OF MY PREMIUM,
  870  BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND THAT TO
  871  BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN
  872  PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR RENEWING COVERAGE
  873  WITH CITIZENS. I UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES
  874  ARE REGULATED AND APPROVED BY THE STATE.
  875         3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
  876  ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
  877  INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
  878  FLORIDA LEGISLATURE.
  879         4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
  880  CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
  881  STATE OF FLORIDA.
  882  
  883         a. The corporation shall maintain, in electronic format or
  884  otherwise, a copy of the applicant’s signed acknowledgment and
  885  provide a copy of the statement to the policyholder as part of
  886  the first renewal after the effective date of this subparagraph.
  887         b. The signed acknowledgment form creates a conclusive
  888  presumption that the policyholder understood and accepted his or
  889  her potential surcharge and assessment liability as a
  890  policyholder of the corporation.
  891         (n)1. Rates for coverage provided by the corporation must
  892  be actuarially sound and subject to s. 627.062, except as
  893  otherwise provided in this paragraph. The corporation shall file
  894  its recommended rates with the office at least annually. The
  895  corporation shall provide any additional information regarding
  896  the rates which the office requires. The office shall consider
  897  the recommendations of the board and issue a final order
  898  establishing the rates for the corporation within 45 days after
  899  the recommended rates are filed. The corporation may not pursue
  900  an administrative challenge or judicial review of the final
  901  order of the office.
  902         2. In addition to the rates otherwise determined pursuant
  903  to this paragraph, the corporation shall impose and collect an
  904  amount equal to the premium tax provided in s. 624.509 to
  905  augment the financial resources of the corporation.
  906         3. After the public hurricane loss-projection model under
  907  s. 627.06281 has been found to be accurate and reliable by the
  908  Florida Commission on Hurricane Loss Projection Methodology, the
  909  model shall be considered when establishing the windstorm
  910  portion of the corporation’s rates. The corporation may use the
  911  public model results in combination with the results of private
  912  models to calculate rates for the windstorm portion of the
  913  corporation’s rates. This subparagraph does not require or allow
  914  the corporation to adopt rates lower than the rates otherwise
  915  required or allowed by this paragraph.
  916         4. The rate filings for the corporation which were approved
  917  by the office and took effect January 1, 2007, are rescinded,
  918  except for those rates that were lowered. As soon as possible,
  919  the corporation shall begin using the lower rates that were in
  920  effect on December 31, 2006, and provide refunds to
  921  policyholders who paid higher rates as a result of that rate
  922  filing. The rates in effect on December 31, 2006, remain in
  923  effect for the 2007 and 2008 calendar years except for any rate
  924  change that results in a lower rate. The next rate change that
  925  may increase rates shall take effect pursuant to a new rate
  926  filing recommended by the corporation and established by the
  927  office, subject to this paragraph.
  928         4.5. Beginning on July 15, 2009, and annually thereafter,
  929  The corporation must make a recommended actuarially sound rate
  930  filing for each personal and commercial line of business it
  931  writes, to be effective no earlier than January 1, 2010.
  932         5.6. Beginning on or after January 1, 2010, and
  933  Notwithstanding the board’s recommended rates and the office’s
  934  final order regarding the corporation’s filed rates under
  935  subparagraph 1., the corporation shall annually implement a rate
  936  increase which, except for sinkhole coverage, does not exceed
  937  the following 10 percent for any single policy issued by the
  938  corporation, excluding coverage changes and surcharges:
  939         a. Eleven percent for 2022.
  940         b. Twelve percent for 2023.
  941         c. Thirteen percent for 2024.
  942         d. Fourteen percent for 2025.
  943         e. Fifteen percent for 2026 and all subsequent years.
  944         6.7. The corporation may also implement an increase to
  945  reflect the effect on the corporation of the cash buildup factor
  946  pursuant to s. 215.555(5)(b).
  947         7.8. The corporation’s implementation of rates as
  948  prescribed in subparagraph 5. 6. shall cease for any line of
  949  business written by the corporation upon the corporation’s
  950  implementation of actuarially sound rates. Thereafter, the
  951  corporation shall annually make a recommended actuarially sound
  952  rate filing for each commercial and personal line of business
  953  the corporation writes.
  954         (jj) The corporation’s budget allocations for the
  955  compensation of all corporation employees and any proposed raise
  956  for an individual employee exceeding 10 percent of that
  957  employee’s current salary must be approved by the board of
  958  governors. The corporation must have an overall employee
  959  compensation plan approved by the board of governors.
  960         Section 8. Subsection (5) of section 627.3518, Florida
  961  Statutes, is amended to read:
  962         627.3518 Citizens Property Insurance Corporation
  963  policyholder eligibility clearinghouse program.—The purpose of
  964  this section is to provide a framework for the corporation to
  965  implement a clearinghouse program by January 1, 2014.
  966         (5) Notwithstanding s. 627.3517, any applicant for new
  967  coverage from the corporation is not eligible for coverage from
  968  the corporation if provided an offer of coverage from an
  969  authorized insurer through the program at a premium that is at
  970  or below the eligibility threshold established in s.
  971  627.351(6)(c)5.a. Whenever an offer of coverage for a personal
  972  lines risk is received for a policyholder of the corporation at
  973  renewal from an authorized insurer through the program, if the
  974  offer is equal to or less than the corporation’s renewal premium
  975  for comparable coverage, the risk is not eligible for coverage
  976  with the corporation. In the event an offer of coverage for a
  977  new applicant is received from an authorized insurer through the
  978  program, and the premium offered exceeds the eligibility
  979  threshold contained in s. 627.351(6)(c)5.a., the applicant or
  980  insured may elect to accept such coverage, or may elect to
  981  accept or continue coverage with the corporation. In the event
  982  an offer of coverage for a personal lines risk is received from
  983  an authorized insurer at renewal through the program, and the
  984  premium offered is more than the corporation’s renewal premium
  985  for comparable coverage, the insured may elect to accept such
  986  coverage, or may elect to accept or continue coverage with the
  987  corporation. Section 627.351(6)(c)5.a.(I) does not apply to an
  988  offer of coverage from an authorized insurer obtained through
  989  the program. An applicant for coverage from the corporation who
  990  was declared ineligible for coverage at renewal by the
  991  corporation in the previous 36 months due to an offer of
  992  coverage pursuant to this subsection shall be considered a
  993  renewal under this section if the corporation determines that
  994  the authorized insurer making the offer of coverage pursuant to
  995  this subsection continues to insure the applicant and increased
  996  the rate on the policy in excess of the increase allowed for the
  997  corporation under s. 627.351(6)(n)5. s. 627.351(6)(n)6.
  998         Section 9. Subsection (1) of section 627.428, Florida
  999  Statutes, is amended to read:
 1000         627.428 Attorney fees.—
 1001         (1) Upon the rendition of a judgment or decree by any of
 1002  the courts of this state against an insurer and in favor of any
 1003  named or omnibus insured or the named beneficiary under a policy
 1004  or contract executed by the insurer, the trial court or, in the
 1005  event of an appeal in which the insured or beneficiary prevails,
 1006  the appellate court shall adjudge or decree against the insurer
 1007  and in favor of the insured or beneficiary a reasonable sum as
 1008  fees or compensation for the insured’s or beneficiary’s attorney
 1009  prosecuting the suit in which the recovery is had. In a suit
 1010  arising under a residential or commercial property insurance
 1011  policy not brought by an assignee, the amount of reasonable
 1012  attorney fees shall be awarded only as provided in s. 57.105 or
 1013  s. 627.70152, as applicable.
 1014         Section 10. Section 627.70132, Florida Statutes, is amended
 1015  to read:
 1016         627.70132 Notice of property insurance windstorm or
 1017  hurricane claim.—
 1018         (1) As used in this section, the term:
 1019         (a) “Reopened claim” means a claim that an insurer has
 1020  previously closed, but that has been reopened upon an insured’s
 1021  request for additional costs for loss or damage previously
 1022  disclosed to the insurer.
 1023         (b) “Supplemental claim” means a claim for additional loss
 1024  or damage from the same peril which the insurer has previously
 1025  adjusted or for which costs have been incurred while completing
 1026  repairs or replacement pursuant to an open claim for which
 1027  timely notice was previously provided to the insurer.
 1028         (2) A claim or reopened claim, but not a supplemental
 1029  claim, or reopened claim under an insurance policy that provides
 1030  property insurance, as defined in s. 624.604, including a
 1031  property insurance policy issued by an eligible surplus lines
 1032  insurer, for loss or damage caused by any the peril of windstorm
 1033  or hurricane is barred unless notice of the claim, supplemental
 1034  claim, or reopened claim was given to the insurer in accordance
 1035  with the terms of the policy within 2 3 years after the date of
 1036  loss hurricane first made landfall or the windstorm caused the
 1037  covered damage. A supplemental claim is barred unless notice of
 1038  the supplemental claim was given to the insurer in accordance
 1039  with the terms of the policy within 3 years after the date of
 1040  loss.
 1041         (3) For claims resulting from hurricanes, tornadoes,
 1042  windstorms, severe rain, or other weather-related events, the
 1043  date of loss is the date that the hurricane made landfall or the
 1044  tornado, windstorm, severe rain, or other weather-related event
 1045  is verified by the National Oceanic and Atmospheric
 1046  Administration For purposes of this section, the term
 1047  “supplemental claim” or “reopened claim” means any additional
 1048  claim for recovery from the insurer for losses from the same
 1049  hurricane or windstorm which the insurer has previously adjusted
 1050  pursuant to the initial claim.
 1051         (4) This section does not affect any applicable limitation
 1052  on civil actions provided in s. 95.11 for claims, supplemental
 1053  claims, or reopened claims timely filed under this section.
 1054         Section 11. Paragraph (e) of subsection (9) of section
 1055  627.7015, Florida Statutes, is amended to read:
 1056         627.7015 Alternative procedure for resolution of disputed
 1057  property insurance claims.—
 1058         (9) For purposes of this section, the term “claim” refers
 1059  to any dispute between an insurer and a policyholder relating to
 1060  a material issue of fact other than a dispute:
 1061         (a) With respect to which the insurer has a reasonable
 1062  basis to suspect fraud;
 1063         (b) When, based on agreed-upon facts as to the cause of
 1064  loss, there is no coverage under the policy;
 1065         (c) With respect to which the insurer has a reasonable
 1066  basis to believe that the policyholder has intentionally made a
 1067  material misrepresentation of fact which is relevant to the
 1068  claim, and the entire request for payment of a loss has been
 1069  denied on the basis of the material misrepresentation;
 1070         (d) With respect to which the amount in controversy is less
 1071  than $500, unless the parties agree to mediate a dispute
 1072  involving a lesser amount; or
 1073         (e) With respect to a windstorm or hurricane loss that does
 1074  not comply with s. 627.70132.
 1075         Section 12. Section 627.70152, Florida Statutes, is created
 1076  to read:
 1077         627.70152 Suits arising under a property insurance policy.—
 1078         (1) APPLICATION.—This section applies exclusively to all
 1079  suits not brought by an assignee arising under a residential or
 1080  commercial property insurance policy, including a residential or
 1081  commercial property insurance policy issued by an eligible
 1082  surplus lines insurer.
 1083         (2) DEFINITIONS.—As used in this section, the term:
 1084         (a) “Amount obtained” means damages recovered, if any, but
 1085  the term does not include any amount awarded for attorney fees,
 1086  costs, or interest.
 1087         (b) “Claimant” means an insured who is filing suit under a
 1088  residential or commercial property insurance policy.
 1089         (c) “Disputed amount” means the difference between the
 1090  claimant’s presuit settlement demand, not including attorney
 1091  fees and costs listed in the demand, and the insurer’s presuit
 1092  settlement offer, not including attorney fees and costs, if part
 1093  of the offer.
 1094         (d) “Presuit settlement demand” means the demand made by
 1095  the claimant in the written notice of intent to initiate
 1096  litigation as required by paragraph (3)(e). The demand must
 1097  include the amount of reasonable and necessary attorney fees and
 1098  costs incurred by the claimant, to be calculated by multiplying
 1099  the number of hours actually worked on the claim by the
 1100  claimant’s attorney as of the date of the notice by a reasonable
 1101  hourly rate.
 1102         (e) “Presuit settlement offer” means the offer made by the
 1103  insurer in its written response to the notice as required by
 1104  subsection (3).
 1105         (3) NOTICE.—
 1106         (a) As a condition precedent to filing a suit under a
 1107  property insurance policy, a claimant must provide the
 1108  department with written notice of intent to initiate litigation
 1109  on a form provided by the department. Such notice must be given
 1110  at least 10 business days before filing suit under the policy,
 1111  but may not be given before the insurer has made a determination
 1112  of coverage under s. 627.70131. Notice to the insurer must be
 1113  provided by the department to the e-mail address designated by
 1114  the insurer under s. 624.422. The notice must state with
 1115  specificity all of the following information:
 1116         1. That the notice is provided pursuant to this section.
 1117         2. The alleged acts or omissions of the insurer giving rise
 1118  to the suit, which may include a denial of coverage.
 1119         3. If provided by an attorney or other representative, that
 1120  a copy of the notice was provided to the claimant.
 1121         4. If the notice is provided following a denial of
 1122  coverage, an estimate of damages, if known.
 1123         5. If the notice is provided following acts or omissions by
 1124  the insurer other than denial of coverage, both of the
 1125  following:
 1126         a. The presuit settlement demand, which must itemize the
 1127  damages, attorney fees, and costs.
 1128         b. The disputed amount.
 1129  
 1130  Documentation to support the information provided in this
 1131  paragraph may be provided along with the notice to the insurer.
 1132         (b) A claimant must serve a notice of intent to initiate
 1133  litigation within the time limits provided in s. 95.11. However,
 1134  the notice is not required if the suit is a counterclaim.
 1135  Service of a notice tolls the time limits provided in s. 95.11
 1136  for 10 business days if such time limits will expire before the
 1137  end of the 10-day notice period.
 1138         (4) INSURER DUTIES.—An insurer must have a procedure for
 1139  the prompt investigation, review, and evaluation of the dispute
 1140  stated in the notice and must investigate each claim contained
 1141  in the notice in accordance with the Florida Insurance Code.
 1142  An insurer must respond in writing within 10 business days after
 1143  receiving the notice specified in subsection (3). The insurer
 1144  must provide the response to the claimant by e-mail if the
 1145  insured has designated an e-mail address in the notice.
 1146         (a) If an insurer is responding to a notice served on the
 1147  insurer following a denial of coverage by the insurer, the
 1148  insurer must respond by:
 1149         1. Accepting coverage;
 1150         2. Continuing to deny coverage; or
 1151         3. Asserting the right to reinspect the damaged property.
 1152  If the insurer responds by asserting the right to reinspect the
 1153  damaged property, it has 14 business days after the response
 1154  asserting that right to reinspect the property and accept or
 1155  continue to deny coverage. The time limits provided in s. 95.11
 1156  are tolled during the reinspection period if such time limits
 1157  expire before the end of the reinspection period. If the insurer
 1158  continues to deny coverage, the claimant may file suit without
 1159  providing additional notice to the insurer.
 1160         (b) If an insurer is responding to a notice provided to the
 1161  insurer alleging an act or omission by the insurer other than a
 1162  denial of coverage, the insurer must respond by making a
 1163  settlement offer or requiring the claimant to participate in
 1164  appraisal or another method of alternative dispute resolution.
 1165  The time limits provided in s. 95.11 are tolled as long as
 1166  appraisal or other alternative dispute resolution is ongoing if
 1167  such time limits expire during the appraisal process or dispute
 1168  resolution process. If the appraisal or alternative dispute
 1169  resolution has not been concluded within 90 days after the
 1170  expiration of the 10-day notice of intent to initiate litigation
 1171  specified in subsection (3), the claimant or claimant’s attorney
 1172  may immediately file suit without providing the insurer
 1173  additional notice.
 1174         (5) DISMISSAL OF SUIT.—A court must dismiss without
 1175  prejudice any claimant’s suit relating to a claim for which a
 1176  notice of intent to initiate litigation was not given as
 1177  required by this section or if such suit is commenced before the
 1178  expiration of any time period provided under subsection (4), as
 1179  applicable.
 1180         (6) ADMISSIBILITY OF NOTICE AND RESPONSE.—The notice
 1181  provided pursuant to subsection (3) and, if applicable, the
 1182  documentation to support the information provided in the notice:
 1183         (a) Are admissible as evidence only in a proceeding
 1184  regarding attorney fees.
 1185         (b) Do not limit the evidence of attorney fees or costs,
 1186  damages, or loss which may be offered at trial.
 1187         (c) Do not relieve any obligation that an insured or
 1188  assignee has to give notice under any other provision of law.
 1189         (7) TOLLING.—If a claim is not resolved during the presuit
 1190  notice process and if the time limits provided in s. 95.11
 1191  expire in the 30 days following the conclusion of the presuit
 1192  notice process, such time limits are tolled for 30 days.
 1193         (8) ATTORNEY FEES.—
 1194         (a) In a suit arising under a residential or commercial
 1195  property insurance policy not brought by an assignee, the amount
 1196  of reasonable attorney fees and costs under s. 626.9373(1) or s.
 1197  627.428(1) shall be calculated and awarded as follows:
 1198         1. If the difference between the amount obtained by the
 1199  claimant and the presuit settlement offer, excluding reasonable
 1200  attorney fees and costs, is less than 20 percent of the disputed
 1201  amount, each party pays its own attorney fees and costs and a
 1202  claimant may not be awarded attorney fees under s. 626.9373(1)
 1203  or s. 627.428(1).
 1204         2. If the difference between the amount obtained by the
 1205  claimant and the presuit settlement offer, excluding reasonable
 1206  attorney fees and costs, is at least 20 percent but less than 50
 1207  percent of the disputed amount, the insurer pays the claimant’s
 1208  attorney fees and costs under s. 626.9373(1) or s. 627.428(1)
 1209  equal to the percentage of the disputed amount obtained times
 1210  the total attorney fees and costs.
 1211         3. If the difference between the amount obtained by the
 1212  claimant and the presuit settlement offer, excluding reasonable
 1213  attorney fees and costs, is at least 50 percent of the disputed
 1214  amount, the insurer pays the claimant’s full attorney fees and
 1215  costs under s. 626.9373(1) or s. 627.428(1).
 1216         (b) In a suit arising under a residential or commercial
 1217  property insurance policy not brought by an assignee, if a court
 1218  dismisses a claimant’s suit pursuant to subsection (5), the
 1219  court may not award to the claimant any incurred attorney fees
 1220  for services rendered before the dismissal of the suit.
 1221         Section 13. Section 627.70153, Florida Statutes, is created
 1222  to read:
 1223         627.70153 Consolidation of residential property insurance
 1224  actions.—Each party that is aware of ongoing multiple actions
 1225  involving coverage provided under the same residential property
 1226  insurance policy for the same property with the same owners must
 1227  provide written notice to the court of the multiple actions.
 1228  Upon notification of any party, the court may order that the
 1229  actions be consolidated and transferred to the court having
 1230  jurisdiction based on the total amount in controversy of all
 1231  consolidated claims. If multiple cases are pending in circuit
 1232  courts, the cases may be consolidated based on the date on which
 1233  the first case was filed.
 1234         Section 14. Subsection (3) of section 628.801, Florida
 1235  Statutes, is amended to read:
 1236         628.801 Insurance holding companies; registration;
 1237  regulation.—
 1238         (3) In addition to the powers which the office has under
 1239  Effective January 1, 2015, pursuant to chapter 624 relating to
 1240  the examination of insurers, the office may examine any insurer
 1241  registered under this section and its affiliates to ascertain
 1242  the financial condition of the insurer, including the enterprise
 1243  risk to the insurer by the ultimate controlling party, or by any
 1244  entity or combination of entities within the insurance holding
 1245  company system, or by the insurance holding company system on a
 1246  consolidated basis.
 1247         (a) The office may require any insurer registered under
 1248  this section to produce such records, books, or other
 1249  information and papers in the possession of the insurer or its
 1250  affiliates as are reasonably necessary.
 1251         (b) The office may retain at the registered insurer’s
 1252  expense such attorneys, actuaries, accountants and other experts
 1253  not otherwise a part of the office’s staff as shall be
 1254  reasonably necessary to assist in the conduct of the examination
 1255  under this subsection. Any persons so retained shall be under
 1256  the direction and control of the office and shall act in a
 1257  purely advisory capacity.
 1258         (c) Each registered insurer producing for examination
 1259  records, books, and papers pursuant to this subsection is liable
 1260  for and shall pay the expense of examination in accordance with
 1261  s. 624.320.
 1262         (d) The office shall have the power to examine the
 1263  affiliates of the registered insurer. The scope of the
 1264  examination of an insurer’s affiliates under this subsection
 1265  must be limited to information reasonably necessary. An
 1266  examination of an insurer’s affiliate under this section, unless
 1267  reasonably necessary to ascertain the financial condition of the
 1268  insurer, may not extend to the passive investors of affiliates
 1269  in the holding company system which do not provide services
 1270  directly or indirectly to the insurer or have direct or indirect
 1271  relationships with the insurer.
 1272         Section 15. This act shall take effect July 1, 2021.

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