Bill Text: FL S0186 | 2022 | Regular Session | Comm Sub
Bill Title: Citizens Property Insurance Corporation
Spectrum: Bipartisan Bill
Status: (Failed) 2022-03-14 - Died in Appropriations [S0186 Detail]
Download: Florida-2022-S0186-Comm_Sub.html
Florida Senate - 2022 CS for SB 186 By the Committee on Banking and Insurance; and Senator Brandes 597-02315-22 2022186c1 1 A bill to be entitled 2 An act relating to Citizens Property Insurance 3 Corporation; amending s. 627.021, F.S.; revising 4 applicability; amending s. 627.351, F.S.; requiring, 5 rather than authorizing, the corporation to use a 6 single account under certain circumstances; revising 7 the method for determining the amounts of potential 8 surcharges to be levied against policyholders under 9 certain circumstances; requiring the corporation to 10 annually collect a specified surcharge upon renewal on 11 certain policies; defining the term “primary 12 residence”; revising conditions for eligibility for 13 coverage with the corporation to require a certain 14 minimum premium; specifying a limit for agent 15 commission rates; requiring that policies assumed by 16 the corporation from unsound insurers be charged a 17 specified premium until certain conditions are met; 18 defining the term “unsound insurer”; providing that 19 eligible surplus lines insurers may participate, in 20 the same manner and on the same terms as an authorized 21 insurer, in depopulation, take-out, or keep-out 22 programs relating to policies removed from Citizens 23 Property Insurance Corporation; providing certain 24 exceptions, conditions, and requirements relating to 25 such participation by a surplus lines insurer in the 26 corporation’s depopulation, take-out, or keep-out 27 programs; providing thresholds for eligibility for 28 coverage by the corporation for risks that are offered 29 coverage from qualified surplus lines insurers; 30 authorizing information from underwriting files and 31 confidential claims files to be released under certain 32 circumstances by the corporation to specified entities 33 that consider writing or underwriting risks insured by 34 the corporation; specifying that only the 35 corporation’s transfer of a policy file to an insurer, 36 as opposed to the transfer of any file, changes the 37 file’s public record status; making technical changes; 38 amending s. 627.3517, F.S.; making technical changes; 39 amending s. 627.3518, F.S., and reenacting paragraphs 40 (6)(a) and (7)(a) of that section, relating to the 41 Citizens Property Insurance Corporation policyholder 42 eligibility clearinghouse program, to incorporate the 43 amendments made to s. 627.351, F.S., in references 44 thereto; conforming provisions to changes made by the 45 act; providing an effective date. 46 47 Be It Enacted by the Legislature of the State of Florida: 48 49 Section 1. Subsection (2) of section 627.021, Florida 50 Statutes, is amended to read: 51 627.021 Scope of this part.— 52 (2) This part does not apply to: 53 (a) Reinsurance, except joint reinsurance as provided in s. 54 627.311. 55 (b) Insurance against loss of or damage to aircraft, their 56 hulls, accessories, or equipment, or against liability, other 57 than workers’ compensation and employer’s liability, arising out 58 of the ownership, maintenance, or use of aircraft. 59 (c) Insurance of vessels or craft, their cargoes, marine 60 builders’ risks, marine protection and indemnity, or other risks 61 commonly insured under marine insurance policies. 62 (d) Commercial inland marine insurance. 63 (e) Except as may be specifically stated to apply, surplus 64 lines insurance placed underthe provisions ofss. 626.913 65 626.937. 66 Section 2. Paragraphs (b), (c), (n), (q), and (x) of 67 subsection (6) of section 627.351, Florida Statutes, are amended 68 to read: 69 627.351 Insurance risk apportionment plans.— 70 (6) CITIZENS PROPERTY INSURANCE CORPORATION.— 71 (b)1. All insurers authorized to write one or more subject 72 lines of business in this state are subject to assessment by the 73 corporation and, for the purposes of this subsection, are 74 referred to collectively as “assessable insurers.” Insurers 75 writing one or more subject lines of business in this state 76 pursuant to part VIII of chapter 626 are not assessable 77 insurers; however, insureds who procure one or more subject 78 lines of business in this state pursuant to part VIII of chapter 79 626 are subject to assessment by the corporation and are 80 referred to collectively as “assessable insureds.” An insurer’s 81 assessment liability begins on the first day of the calendar 82 year following the year in which the insurer was issued a 83 certificate of authority to transact insurance for subject lines 84 of business in this state and terminates 1 year after the end of 85 the first calendar year during which the insurer no longer holds 86 a certificate of authority to transact insurance for subject 87 lines of business in this state. 88 2.a. All revenues, assets, liabilities, losses, and 89 expenses of the corporation shall be divided into three separate 90 accounts as follows: 91 (I) A personal lines account for personal residential 92 policies issued by the corporation which provides comprehensive, 93 multiperil coverage on risks that are not located in areas 94 eligible for coverage by the Florida Windstorm Underwriting 95 Association as those areas were defined on January 1, 2002, and 96 for policies that do not provide coverage for the peril of wind 97 on risks that are located in such areas; 98 (II) A commercial lines account for commercial residential 99 and commercial nonresidential policies issued by the corporation 100 which provides coverage for basic property perils on risks that 101 are not located in areas eligible for coverage by the Florida 102 Windstorm Underwriting Association as those areas were defined 103 on January 1, 2002, and for policies that do not provide 104 coverage for the peril of wind on risks that are located in such 105 areas; and 106 (III) A coastal account for personal residential policies 107 and commercial residential and commercial nonresidential 108 property policies issued by the corporation which provides 109 coverage for the peril of wind on risks that are located in 110 areas eligible for coverage by the Florida Windstorm 111 Underwriting Association as those areas were defined on January 112 1, 2002. The corporation may offer policies that provide 113 multiperil coverage and shall offer policies that provide 114 coverage only for the peril of wind for risks located in areas 115 eligible for coverage in the coastal account. Effective July 1, 116 2014, the corporation shall cease offering new commercial 117 residential policies providing multiperil coverage and shall 118 instead continue to offer commercial residential wind-only 119 policies, and may offer commercial residential policies 120 excluding wind. The corporation may, however, continue to renew 121 a commercial residential multiperil policy on a building that is 122 insured by the corporation on June 30, 2014, under a multiperil 123 policy. In issuing multiperil coverage, the corporation may use 124 its approved policy forms and rates for the personal lines 125 account. An applicant or insured who is eligible to purchase a 126 multiperil policy from the corporation may purchase a multiperil 127 policy from an authorized insurer without prejudice to the 128 applicant’s or insured’s eligibility to prospectively purchase a 129 policy that provides coverage only for the peril of wind from 130 the corporation. An applicant or insured who is eligible for a 131 corporation policy that provides coverage only for the peril of 132 wind may elect to purchase or retain such policy and also 133 purchase or retain coverage excluding wind from an authorized 134 insurer without prejudice to the applicant’s or insured’s 135 eligibility to prospectively purchase a policy that provides 136 multiperil coverage from the corporation. It is the goal of the 137 Legislature that there be an overall average savings of 10 138 percent or more for a policyholder who currently has a wind-only 139 policy with the corporation, and an ex-wind policy with a 140 voluntary insurer or the corporation, and who obtains a 141 multiperil policy from the corporation. It is the intent of the 142 Legislature that the offer of multiperil coverage in the coastal 143 account be made and implemented in a manner that does not 144 adversely affect the tax-exempt status of the corporation or 145 creditworthiness of or security for currently outstanding 146 financing obligations or credit facilities of the coastal 147 account, the personal lines account, or the commercial lines 148 account. The coastal account must also include quota share 149 primary insurance under subparagraph (c)2. The area eligible for 150 coverage under the coastal account also includes the area within 151 Port Canaveral,which is bordered on the south by the City of 152 Cape Canaveral, bordered on the west by the Banana River, and 153 bordered on the north by Federal Government property. 154 b. The three separate accounts must be maintained as long 155 as financing obligations entered into by the Florida Windstorm 156 Underwriting Association or Residential Property and Casualty 157 Joint Underwriting Association are outstanding, in accordance 158 with the terms of the corresponding financing documents. If the 159 financing obligations are no longer outstanding, the corporation 160 shallmayuse a single account for all revenues, assets, 161 liabilities, losses, and expenses of the corporation. Consistent 162 with this subparagraph and prudent investment policies that 163 minimize the cost of carrying debt, the board shall exercise its 164 best efforts to retire existing debt or obtain the approval of 165 necessary parties to amend the terms of existing debt, so as to 166 structure the most efficient plan for consolidating the three 167 separate accounts into a single account. 168 c. Creditors of the Residential Property and Casualty Joint 169 Underwriting Association and the accounts specified in sub-sub 170 subparagraphs a.(I) and (II) may have a claim against, and 171 recourse to, those accounts and no claim against, or recourse 172 to, the account referred to in sub-sub-subparagraph a.(III). 173 Creditors of the Florida Windstorm Underwriting Association have 174 a claim against, and recourse to, the account referred to in 175 sub-sub-subparagraph a.(III) and no claim against, or recourse 176 to, the accounts referred to in sub-sub-subparagraphs a.(I) and 177 (II). 178 d. Revenues, assets, liabilities, losses, and expenses not 179 attributable to particular accounts shall be prorated among the 180 accounts. 181 e. The Legislature finds that the revenues of the 182 corporation are revenues that are necessary to meet the 183 requirements set forth in documents authorizing the issuance of 184 bonds under this subsection. 185 f. The income of the corporation may not inure to the 186 benefit of any private person. 187 3. With respect to a deficit in an account: 188 a. After accounting for the Citizens policyholder surcharge 189 imposed under sub-subparagraph i., if the remaining projected 190 deficit incurred in the coastal account in a particular calendar 191 year: 192 (I) Is not greater than 2 percent of the aggregate 193 statewide direct written premium for the subject lines of 194 business for the prior calendar year, the entire deficit shall 195 be recovered through regular assessments of assessable insurers 196 under paragraph (q) and assessable insureds. 197 (II) Exceeds 2 percent of the aggregate statewide direct 198 written premium for the subject lines of business for the prior 199 calendar year, the corporation shall levy regular assessments on 200 assessable insurers under paragraph (q) and on assessable 201 insureds in an amount equal to the greater of 2 percent of the 202 projected deficit or 2 percent of the aggregate statewide direct 203 written premium for the subject lines of business for the prior 204 calendar year. Any remaining projected deficit shall be 205 recovered through emergency assessments under sub-subparagraph 206 d. 207 b. Each assessable insurer’s share of the amount being 208 assessed under sub-subparagraph a. must be in the proportion 209 that the assessable insurer’s direct written premium for the 210 subject lines of business for the year preceding the assessment 211 bears to the aggregate statewide direct written premium for the 212 subject lines of business for that year. The assessment 213 percentage applicable to each assessable insured is the ratio of 214 the amount being assessed under sub-subparagraph a. to the 215 aggregate statewide direct written premium for the subject lines 216 of business for the prior year. Assessments levied by the 217 corporation on assessable insurers under sub-subparagraph a. 218 must be paid as required by the corporation’s plan of operation 219 and paragraph (q). Assessments levied by the corporation on 220 assessable insureds under sub-subparagraph a. shall be collected 221 by the surplus lines agent at the time the surplus lines agent 222 collects the surplus lines tax required by s. 626.932, and paid 223 to the Florida Surplus Lines Service Office at the time the 224 surplus lines agent pays the surplus lines tax to that office. 225 Upon receipt of regular assessments from surplus lines agents, 226 the Florida Surplus Lines Service Office shall transfer the 227 assessments directly to the corporation as determined by the 228 corporation. 229 c. After accounting for the Citizens policyholder surcharge 230 imposed under sub-subparagraph i., the remaining projected 231 deficits in the personal lines account and in the commercial 232 lines account in a particular calendar year shall be recovered 233 through emergency assessments under sub-subparagraph d. 234 d. Upon a determination by the board of governors that a 235 projected deficit in an account exceeds the amount that is 236 expected to be recovered through regular assessments under sub 237 subparagraph a., plus the amount that is expected to be 238 recovered through surcharges under sub-subparagraph i., the 239 board, after verification by the office, shall levy emergency 240 assessments for as many years as necessary to cover the 241 deficits, to be collected by assessable insurers and the 242 corporation and collected from assessable insureds upon issuance 243 or renewal of policies for subject lines of business, excluding 244 National Flood Insurance policies. The amount collected in a 245 particular year must be a uniform percentage of that year’s 246 direct written premium for subject lines of business and all 247 accounts of the corporation, excluding National Flood Insurance 248 Program policy premiums, as annually determined by the board and 249 verified by the office. The office shall verify the arithmetic 250 calculations involved in the board’s determination within 30 251 days after receipt of the information on which the determination 252 was based. The office shall notify assessable insurers and the 253 Florida Surplus Lines Service Office of the date on which 254 assessable insurers shall begin to collect and assessable 255 insureds shall begin to pay such assessment. The date must be at 256 least 90 days after the date the corporation levies emergency 257 assessments pursuant to this sub-subparagraph. Notwithstanding 258 any other provision of law, the corporation and each assessable 259 insurer that writes subject lines of business shall collect 260 emergency assessments from its policyholders without such 261 obligation being affected by any credit, limitation, exemption, 262 or deferment. Emergency assessments levied by the corporation on 263 assessable insureds shall be collected by the surplus lines 264 agent at the time the surplus lines agent collects the surplus 265 lines tax required by s. 626.932 and paid to the Florida Surplus 266 Lines Service Office at the time the surplus lines agent pays 267 the surplus lines tax to that office. The emergency assessments 268 collected shall be transferred directly to the corporation on a 269 periodic basis as determined by the corporation and held by the 270 corporation solely in the applicable account. The aggregate 271 amount of emergency assessments levied for an account in any 272 calendar year may be less than but may not exceed the greater of 273 10 percent of the amount needed to cover the deficit, plus 274 interest, fees, commissions, required reserves, and other costs 275 associated with financing the original deficit, or 10 percent of 276 the aggregate statewide direct written premium for subject lines 277 of business and all accounts of the corporation for the prior 278 year, plus interest, fees, commissions, required reserves, and 279 other costs associated with financing the deficit. 280 e. The corporation may pledge the proceeds of assessments, 281 projected recoveries from the Florida Hurricane Catastrophe 282 Fund, other insurance and reinsurance recoverables, policyholder 283 surcharges and other surcharges, and other funds available to 284 the corporation as the source of revenue for and to secure bonds 285 issued under paragraph (q), bonds or other indebtedness issued 286 under subparagraph (c)3., or lines of credit or other financing 287 mechanisms issued or created under this subsection, or to retire 288 any other debt incurred as a result of deficits or events giving 289 rise to deficits, or in any other way that the board determines 290 will efficiently recover such deficits. The purpose of the lines 291 of credit or other financing mechanisms is to provide additional 292 resources to assist the corporation in covering claims and 293 expenses attributable to a catastrophe. As used in this 294 subsection, the term “assessments” includes regular assessments 295 under sub-subparagraph a. or subparagraph (q)1. and emergency 296 assessments under sub-subparagraph d. Emergency assessments 297 collected under sub-subparagraph d. are not part of an insurer’s 298 rates, are not premium, and are not subject to premium tax, 299 fees, or commissions; however, failure to pay the emergency 300 assessment shall be treated as failure to pay premium. The 301 emergency assessments shall continue as long as any bonds issued 302 or other indebtedness incurred with respect to a deficit for 303 which the assessment was imposed remain outstanding, unless 304 adequate provision has been made for the payment of such bonds 305 or other indebtedness pursuant to the documents governing such 306 bonds or indebtedness. 307 f. As used in this subsection for purposes of any deficit 308 incurred on or after January 25, 2007, the term “subject lines 309 of business” means insurance written by assessable insurers or 310 procured by assessable insureds for all property and casualty 311 lines of business in this state, but not including workers’ 312 compensation or medical malpractice. As used in this sub 313 subparagraph, the term “property and casualty lines of business” 314 includes all lines of business identified on Form 2, Exhibit of 315 Premiums and Losses, in the annual statement required of 316 authorized insurers under s. 624.424 and any rule adopted under 317 this section, except for those lines identified as accident and 318 health insurance and except for policies written under the 319 National Flood Insurance Program or the Federal Crop Insurance 320 Program. For purposes of this sub-subparagraph, the term 321 “workers’ compensation” includes both workers’ compensation 322 insurance and excess workers’ compensation insurance. 323 g. The Florida Surplus Lines Service Office shall determine 324 annually the aggregate statewide written premium in subject 325 lines of business procured by assessable insureds and report 326 that information to the corporation in a form and at a time the 327 corporation specifies to ensure that the corporation can meet 328 the requirements of this subsection and the corporation’s 329 financing obligations. 330 h. The Florida Surplus Lines Service Office shall verify 331 the proper application by surplus lines agents of assessment 332 percentages for regular assessments and emergency assessments 333 levied under this subparagraph on assessable insureds and assist 334 the corporation in ensuring the accurate, timely collection and 335 payment of assessments by surplus lines agents as required by 336 the corporation. 337 i. Upon determination by the board of governors that an 338 account has a projected deficit, the board shall levy a Citizens 339 policyholder surcharge against all policyholders of the 340 corporation. 341 (I) The surcharge mustshallbe levied as a uniform 342 percentage of the premium for the policyof up to 15 percent of343such premium, and mustwhich funds shallbe used to offset the 344 deficit, as follows: 345 (A) If the total number of policyholders of the corporation 346 is less than 1 million, a surcharge of 15 percent of the 347 premium. 348 (B) If the total number of policyholders of the corporation 349 is at least 1 million but less than 1.5 million, a surcharge of 350 20 percent of the premium. 351 (C) If the total number of policyholders of the corporation 352 is at least 1.5 million, a surcharge of 25 percent of the 353 premium. 354 (II) The surcharge is payable upon cancellation or 355 termination of the policy, upon renewal of the policy, or upon 356 issuance of a new policy by the corporation within the first 12 357 months after the date of the levy or the period of time 358 necessary to fully collect the surcharge amount. 359 (III) The corporation may not levy any regular assessments 360 under paragraph (q) pursuant to sub-subparagraph a. or sub 361 subparagraph b. with respect to a particular year’s deficit 362 until the corporation has first levied the full amount of the 363 surcharge authorized by this sub-subparagraph. 364 (IV) The surcharge is not considered premium and is not 365 subject to commissions, fees, or premium taxes. However, failure 366 to pay the surcharge shall be treated as failure to pay premium. 367 j. The corporation shall annually collect a surcharge of $5 368 upon renewal on all policies listed as a primary residence with 369 the corporation. 370 k. If the amount of any assessments or surcharges collected 371 from corporation policyholders, assessable insurers or their 372 policyholders, or assessable insureds exceeds the amount of the 373 deficits, such excess amounts shall be remitted to and retained 374 by the corporation in a reserve to be used by the corporation, 375 as determined by the board of governors and approved by the 376 office, to pay claims or reduce any past, present, or future 377 plan-year deficits or to reduce outstanding debt. 378 (c) The corporation’s plan of operation: 379 1. Must provide for adoption of residential property and 380 casualty insurance policy forms and commercial residential and 381 nonresidential property insurance forms, which must be approved 382 by the office before use. The corporation shall adopt the 383 following policy forms: 384 a. Standard personal lines policy forms that are 385 comprehensive multiperil policies providing full coverage of a 386 residential property equivalent to the coverage provided in the 387 private insurance market under an HO-3, HO-4, or HO-6 policy. 388 b. Basic personal lines policy forms that are policies 389 similar to an HO-8 policy or a dwelling fire policy that provide 390 coverage meeting the requirements of the secondary mortgage 391 market, but which is more limited than the coverage under a 392 standard policy. 393 c. Commercial lines residential and nonresidential policy 394 forms that are generally similar to the basic perils of full 395 coverage obtainable for commercial residential structures and 396 commercial nonresidential structures in the admitted voluntary 397 market. 398 d. Personal lines and commercial lines residential property 399 insurance forms that cover the peril of wind only. The forms are 400 applicable only to residential properties located in areas 401 eligible for coverage under the coastal account referred to in 402 sub-subparagraph (b)2.a. 403 e. Commercial lines nonresidential property insurance forms 404 that cover the peril of wind only. The forms are applicable only 405 to nonresidential properties located in areas eligible for 406 coverage under the coastal account referred to in sub 407 subparagraph (b)2.a. 408 f. The corporation may adopt variations of the policy forms 409 listed in sub-subparagraphs a.-e. which contain more restrictive 410 coverage. 411 g. Effective January 1, 2013, the corporation shall offer a 412 basic personal lines policy similar to an HO-8 policy with 413 dwelling repair based on common construction materials and 414 methods. 415 2. Must provide that the corporation adopt a program in 416 which the corporation and authorized insurers enter into quota 417 share primary insurance agreements for hurricane coverage, as 418 defined in s. 627.4025(2)(a), for eligible risks, and adopt 419 property insurance forms for eligible risks which cover the 420 peril of wind only. 421 a. As used in this subsection, the term: 422 (II) “Primary residence” means a risk that has a dwelling 423 replacement cost of less than $700,000 or a single condominium 424 unit that has a combined dwelling and contents replacement cost 425 of less than $700,000 and the insured has represented such 426 dwelling as its permanent home on the insurance application or 427 otherwise to the corporation. A policyholder and the 428 policyholder’s spouse may not collectively have more than one 429 primary residence insured with the corporation. 430 (III)(I)“Quota share primary insurance” means an 431 arrangement in which the primary hurricane coverage of an 432 eligible risk is provided in specified percentages by the 433 corporation and an authorized insurer. The corporation and 434 authorized insurer are each solely responsible for a specified 435 percentage of hurricane coverage of an eligible risk as set 436 forth in a quota share primary insurance agreement between the 437 corporation and an authorized insurer and the insurance 438 contract. The responsibility of the corporation or authorized 439 insurer to pay its specified percentage of hurricane losses of 440 an eligible risk, as set forth in the agreement, may not be 441 altered by the inability of the other party to pay its specified 442 percentage of losses. Eligible risks that are provided hurricane 443 coverage through a quota share primary insurance arrangement 444 must be provided policy forms that set forth the obligations of 445 the corporation and authorized insurer under the arrangement, 446 clearly specify the percentages of quota share primary insurance 447 provided by the corporation and authorized insurer, and 448 conspicuously and clearly state that the authorized insurer and 449 the corporation may not be held responsible beyond their 450 specified percentage of coverage of hurricane losses. 451 (I)(II)“Eligible risks” means personal lines residential 452 and commercial lines residential risks that meet the 453 underwriting criteria of the corporation and are located in 454 areas that were eligible for coverage by the Florida Windstorm 455 Underwriting Association on January 1, 2002. 456 b. The corporation may enter into quota share primary 457 insurance agreements with authorized insurers at corporation 458 coverage levels of 90 percent and 50 percent. 459 c. If the corporation determines that additional coverage 460 levels are necessary to maximize participation in quota share 461 primary insurance agreements by authorized insurers, the 462 corporation may establish additional coverage levels. However, 463 the corporation’s quota share primary insurance coverage level 464 may not exceed 90 percent. 465 d. Any quota share primary insurance agreement entered into 466 between an authorized insurer and the corporation must provide 467 for a uniform specified percentage of coverage of hurricane 468 losses, by county or territory as set forth by the corporation 469 board, for all eligible risks of the authorized insurer covered 470 under the agreement. 471 e. Any quota share primary insurance agreement entered into 472 between an authorized insurer and the corporation is subject to 473 review and approval by the office. However, such agreement shall 474 be authorized only as to insurance contracts entered into 475 between an authorized insurer and an insured who is already 476 insured by the corporation for wind coverage. 477 f. For all eligible risks covered under quota share primary 478 insurance agreements, the exposure and coverage levels for both 479 the corporation and authorized insurers shall be reported by the 480 corporation to the Florida Hurricane Catastrophe Fund. For all 481 policies of eligible risks covered under such agreements, the 482 corporation and the authorized insurer must maintain complete 483 and accurate records for the purpose of exposure and loss 484 reimbursement audits as required by fund rules. The corporation 485 and the authorized insurer shall each maintain duplicate copies 486 of policy declaration pages and supporting claims documents. 487 g. The corporation board shall establish in its plan of 488 operation standards for quota share agreements which ensure that 489 there is no discriminatory application among insurers as to the 490 terms of the agreements, pricing of the agreements, incentive 491 provisions if any, and consideration paid for servicing policies 492 or adjusting claims. 493 h. The quota share primary insurance agreement between the 494 corporation and an authorized insurer must set forth the 495 specific terms under which coverage is provided, including, but 496 not limited to, the sale and servicing of policies issued under 497 the agreement by the insurance agent of the authorized insurer 498 producing the business, the reporting of information concerning 499 eligible risks, the payment of premium to the corporation, and 500 arrangements for the adjustment and payment of hurricane claims 501 incurred on eligible risks by the claims adjuster and personnel 502 of the authorized insurer. Entering into a quota sharing 503 insurance agreement between the corporation and an authorized 504 insurer is voluntary and at the discretion of the authorized 505 insurer. 506 3. May provide that the corporation may employ or otherwise 507 contract with individuals or other entities to provide 508 administrative or professional services that may be appropriate 509 to effectuate the plan. The corporation may borrow funds by 510 issuing bonds or by incurring other indebtedness, and shall have 511 other powers reasonably necessary to effectuate the requirements 512 of this subsection, including, without limitation, the power to 513 issue bonds and incur other indebtedness in order to refinance 514 outstanding bonds or other indebtedness. The corporation may 515 seek judicial validation of its bonds or other indebtedness 516 under chapter 75. The corporation may issue bonds or incur other 517 indebtedness, or have bonds issued on its behalf by a unit of 518 local government pursuant to subparagraph (q)2. in the absence 519 of a hurricane or other weather-related event, upon a 520 determination by the corporation, subject to approval by the 521 office, that such action would enable it to efficiently meet the 522 financial obligations of the corporation and that such 523 financings are reasonably necessary to effectuate the 524 requirements of this subsection. The corporation may take all 525 actions needed to facilitate tax-free status for such bonds or 526 indebtedness, including formation of trusts or other affiliated 527 entities. The corporation may pledge assessments, projected 528 recoveries from the Florida Hurricane Catastrophe Fund, other 529 reinsurance recoverables, policyholder surcharges and other 530 surcharges, and other funds available to the corporation as 531 security for bonds or other indebtedness. In recognition of s. 532 10, Art. I of the State Constitution, prohibiting the impairment 533 of obligations of contracts, it is the intent of the Legislature 534 that no action be taken whose purpose is to impair any bond 535 indenture or financing agreement or any revenue source committed 536 by contract to such bond or other indebtedness. 537 4. Must require that the corporation operate subject to the 538 supervision and approval of a board of governors consisting of 539 nine individuals who are residents of this state and who are 540 from different geographical areas of thisthestate, one of whom 541 is appointed by the Governor and serves solely to advocate on 542 behalf of the consumer. The appointment of a consumer 543 representative by the Governor is deemed to be within the scope 544 of the exemption provided in s. 112.313(7)(b) and is in addition 545 to the appointments authorized under sub-subparagraph a. 546 a. The Governor, the Chief Financial Officer, the President 547 of the Senate, and the Speaker of the House of Representatives 548 shall each appoint two members of the board. At least one of the 549 two members appointed by each appointing officer must have 550 demonstrated expertise in insurance and be deemed to be within 551 the scope of the exemption provided in s. 112.313(7)(b). The 552 Chief Financial Officer shall designate one of the appointees as 553 chair. All board members serve at the pleasure of the appointing 554 officer. All members of the board are subject to removal at will 555 by the officers who appointed them. All board members, including 556 the chair, must be appointed to serve for 3-year terms beginning 557 annually on a date designated by the plan. However, for the 558 first term beginning on or after July 1, 2009, each appointing 559 officer shall appoint one member of the board for a 2-year term 560 and one member for a 3-year term. A board vacancy shall be 561 filled for the unexpired term by the appointing officer. The 562 Chief Financial Officer shall appoint a technical advisory group 563 to provide information and advice to the board in connection 564 with the board’s duties under this subsection. The executive 565 director and senior managers of the corporation shall be engaged 566 by the board and serve at the pleasure of the board. Any 567 executive director appointed on or after July 1, 2006, is 568 subject to confirmation by the Senate. The executive director is 569 responsible for employing other staff as the corporation may 570 require, subject to review and concurrence by the board. 571 b. The board shall create a Market Accountability Advisory 572 Committee to assist the corporation in developing awareness of 573 its rates and its customer and agent service levels in 574 relationship to the voluntary market insurers writing similar 575 coverage. 576 (I) The members of the advisory committee consist of the 577 following 11 persons, one of whom must be elected chair by the 578 members of the committee: four representatives, one appointed by 579 the Florida Association of Insurance Agents, one by the Florida 580 Association of Insurance and Financial Advisors, one by the 581 Professional Insurance Agents of Florida, and one by the Latin 582 American Association of Insurance Agencies; three 583 representatives appointed by the insurers with the three highest 584 voluntary market share of residential property insurance 585 business in thisthestate; one representative from the Office 586 of Insurance Regulation; one consumer appointed by the board who 587 is insured by the corporation at the time of appointment to the 588 committee; one representative appointed by the Florida 589 Association of Realtors; and one representative appointed by the 590 Florida Bankers Association. All members shall be appointed to 591 3-year terms and may serve for consecutive terms. 592 (II) The committee shall report to the corporation at each 593 board meeting on insurance market issues thatwhichmay include 594 rates and rate competition with the voluntary market; service, 595 including policy issuance, claims processing, and general 596 responsiveness to policyholders, applicants, and agents; and 597 matters relating to depopulation. 598 5. Must provide a procedure for determining the eligibility 599 of a risk for coverage, as follows: 600 a. Subject to s. 627.3517, with respect to personal lines 601 residential risks, if the risk is offered coverage from an 602 authorized insurer at the insurer’s approved rate under a 603 standard policy including wind coverage or, if consistent with 604 the insurer’s underwriting rules as filed with the office, a 605 basic policy including wind coverage, for a new application to 606 the corporation for coverage, the risk is not eligible for any 607 policy issued by the corporation unless the premium for coverage 608 from the authorized insurer is more than 20 percent greater than 609 the premium for comparable coverage from the corporation. 610 Whenever an offer of coverage for a personal lines residential 611 risk is received for a policyholder of the corporationat612renewalfrom an authorized insurer,if the offer is equal to or613less than the corporation’s renewal premium for comparable614coverage,the risk is not eligible for coverage with the 615 corporation unless the premium for coverage from the authorized 616 insurer is more than 20 percent greater than the renewal premium 617 for comparable coverage from the corporation. If the risk is not 618 able to obtain such offer, the risk is eligible for a standard 619 policy including wind coverage or a basic policy including wind 620 coverage issued by the corporation; however, if the risk could 621 not be insured under a standard policy including wind coverage 622 regardless of market conditions, the risk is eligible for a 623 basic policy including wind coverage unless rejected under 624 subparagraph 8. However, a policyholder removed from the 625 corporation through an assumption agreement remains eligible for 626 coverage from the corporation until the end of the assumption 627 period. The corporation shall determine the type of policy to be 628 provided on the basis of objective standards specified in the 629 underwriting manual and based on generally accepted underwriting 630 practices. 631 (I) If the risk accepts an offer of coverage through the 632 market assistance plan or through a mechanism established by the 633 corporation other than a plan established by s. 627.3518, before 634 a policy is issued to the risk by the corporation or during the 635 first 30 days of coverage by the corporation, and the producing 636 agent who submitted the application to the plan or to the 637 corporation is not currently appointed by the insurer, the 638 insurer shall: 639 (A) Pay to the producing agent of record of the policy for 640 the first year, an amount that is the greater of the insurer’s 641 usual and customary commission for the type of policy written or 642 a fee equal to the usual and customary commission of the 643 corporation; or 644 (B) Offer to allow the producing agent of record of the 645 policy to continue servicing the policy for at least 1 year and 646 offer to pay the agent the greater of the insurer’s or the 647 corporation’s usual and customary commission for the type of 648 policy written. 649 650 If the producing agent is unwilling or unable to accept 651 appointment, the new insurer shall pay the agent in accordance 652 with sub-sub-sub-subparagraph (A). 653 (II) If the corporation enters into a contractual agreement 654 for a take-out plan, the producing agent of record of the 655 corporation policy is entitled to retain any unearned commission 656 on the policy, and the insurer shall: 657 (A) Pay to the producing agent of record, for the first 658 year, an amount that is the greater of the insurer’s usual and 659 customary commission for the type of policy written or a fee 660 equal to the usual and customary commission of the corporation; 661 or 662 (B) Offer to allow the producing agent of record to 663 continue servicing the policy for at least 1 year and offer to 664 pay the agent the greater of the insurer’s or the corporation’s 665 usual and customary commission for the type of policy written. 666 667 If the producing agent is unwilling or unable to accept 668 appointment, the new insurer shall pay the agent in accordance 669 with sub-sub-sub-subparagraph (A). 670 b. With respect to commercial lines residential risks, for 671 a new application to the corporation for coverage, if the risk 672 is offered coverage under a policy including wind coverage from 673 an authorized insurer at its approved rate, the risk is not 674 eligible for a policy issued by the corporation unless the 675 premium for coverage from the authorized insurer is more than 15 676 percent greater than the premium for comparable coverage from 677 the corporation. Whenever an offer of coverage for a commercial 678 lines residential risk is received for a policyholder of the 679 corporation at renewal from an authorized insurer, if the offer 680 is equal to or less than the corporation’s renewal premium for 681 comparable coverage, the risk is not eligible for coverage with 682 the corporation. If the risk is not able to obtain any such 683 offer, the risk is eligible for a policy including wind coverage 684 issued by the corporation. However, a policyholder removed from 685 the corporation through an assumption agreement remains eligible 686 for coverage from the corporation until the end of the 687 assumption period. 688 (I) If the risk accepts an offer of coverage through the 689 market assistance plan or through a mechanism established by the 690 corporation other than a plan established by s. 627.3518, before 691 a policy is issued to the risk by the corporation or during the 692 first 30 days of coverage by the corporation, and the producing 693 agent who submitted the application to the plan or the 694 corporation is not currently appointed by the insurer, the 695 insurer shall: 696 (A) Pay to the producing agent of record of the policy, for 697 the first year, an amount that is the greater of the insurer’s 698 usual and customary commission for the type of policy written or 699 a fee equal to the usual and customary commission of the 700 corporation; or 701 (B) Offer to allow the producing agent of record of the 702 policy to continue servicing the policy for at least 1 year and 703 offer to pay the agent the greater of the insurer’s or the 704 corporation’s usual and customary commission for the type of 705 policy written. 706 707 If the producing agent is unwilling or unable to accept 708 appointment, the new insurer shall pay the agent in accordance 709 with sub-sub-sub-subparagraph (A). 710 (II) If the corporation enters into a contractual agreement 711 for a take-out plan, the producing agent of record of the 712 corporation policy is entitled to retain any unearned commission 713 on the policy, and the insurer shall: 714 (A) Pay to the producing agent of record, for the first 715 year, an amount that is the greater of the insurer’s usual and 716 customary commission for the type of policy written or a fee 717 equal to the usual and customary commission of the corporation; 718 or 719 (B) Offer to allow the producing agent of record to 720 continue servicing the policy for at least 1 year and offer to 721 pay the agent the greater of the insurer’s or the corporation’s 722 usual and customary commission for the type of policy written. 723 724 If the producing agent is unwilling or unable to accept 725 appointment, the new insurer shall pay the agent in accordance 726 with sub-sub-sub-subparagraph (A). 727 c. For purposes of determining comparable coverage under 728 sub-subparagraphs a. and b., the comparison must be based on 729 those forms and coverages that are reasonably comparable. The 730 corporation may rely on a determination of comparable coverage 731 and premium made by the producing agent who submits the 732 application to the corporation, made in the agent’s capacity as 733 the corporation’s agent. A comparison may be made solely of the 734 premium with respect to the main building or structure only on 735 the following basis: the same coverage A or other building 736 limits; the same percentage hurricane deductible that applies on 737 an annual basis or that applies to each hurricane for commercial 738 residential property; the same percentage of ordinance and law 739 coverage, if the same limit is offered by both the corporation 740 and the authorized insurer; the same mitigation credits, to the 741 extent the same types of credits are offered both by the 742 corporation and the authorized insurer; the same method for loss 743 payment, such as replacement cost or actual cash value, if the 744 same method is offered both by the corporation and the 745 authorized insurer in accordance with underwriting rules; and 746 any other form or coverage that is reasonably comparable as 747 determined by the board. If an application is submitted to the 748 corporation for wind-only coverage in the coastal account, the 749 premium for the corporation’s wind-only policy plus the premium 750 for the ex-wind policy that is offered by an authorized insurer 751 to the applicant must be compared to the premium for multiperil 752 coverage offered by an authorized insurer, subject to the 753 standards for comparison specified in this subparagraph. If the 754 corporation or the applicant requests from the authorized 755 insurer a breakdown of the premium of the offer by types of 756 coverage so that a comparison may be made by the corporation or 757 its agent and the authorized insurer refuses or is unable to 758 provide such information, the corporation may treat the offer as 759 not being an offer of coverage from an authorized insurer at the 760 insurer’s approved rate. 761 6. Must include rules for classifications of risks and 762 rates. 763 7. Must provide that if premium and investment income for 764 an account attributable to a particular calendar year are in 765 excess of projected losses and expenses for the account 766 attributable to that year, such excess shall be held in surplus 767 in the account. Such surplus must be available to defray 768 deficits in that account as to future years and used for that 769 purpose before assessing assessable insurers and assessable 770 insureds as to any calendar year. 771 8. Must provide objective criteria and procedures to be 772 uniformly applied to all applicants in determining whether an 773 individual risk is so hazardous as to be uninsurable. In making 774 this determination and in establishing the criteria and 775 procedures, the following must be considered: 776 a. Whether the likelihood of a loss for the individual risk 777 is substantially higher than for other risks of the same class; 778 and 779 b. Whether the uncertainty associated with the individual 780 risk is such that an appropriate premium cannot be determined. 781 782 The acceptance or rejection of a risk by the corporation must 783shallbe construed as the private placement of insurance, and 784the provisions ofchapter 120 doesdonot apply. 785 9. Must provide that the corporation make its best efforts 786 to procure catastrophe reinsurance at reasonable rates, to cover 787 its projected 100-year probable maximum loss as determined by 788 the board of governors. If catastrophe reinsurance is not 789 available at reasonable rates, the corporation need not purchase 790 it, but the corporation shall include the costs of reinsurance 791 to cover its projected 100-year probable maximum loss in its 792 rate calculations even if it does not purchase catastrophe 793 reinsurance. 794 10. The policies issued by the corporation must provide 795 that if the corporation or the market assistance plan obtains an 796 offer from an authorized insurer to cover the risk at its 797 approved rates, the risk is no longer eligible for renewal 798 through the corporation, except as otherwise provided in this 799 subsection. 800 11. Corporation policies and applications must include a 801 notice that the corporation policy could, under this section, be 802 replaced with a policy issued by an authorized insurer which 803 does not provide coverage identical to the coverage provided by 804 the corporation. The notice must also specify that acceptance of 805 corporation coverage creates a conclusive presumption that the 806 applicant or policyholder is aware of this potential. 807 12. May establish, subject to approval by the office, 808 different eligibility requirements and operational procedures 809 for any line or type of coverage for any specified county or 810 area if the board determines that such changes are justified due 811 to the voluntary market being sufficiently stable and 812 competitive in such area or for such line or type of coverage 813 and that consumers who, in good faith, are unable to obtain 814 insurance through the voluntary market through ordinary methods 815 continue to have access to coverage from the corporation. If 816 coverage is sought in connection with a real property transfer, 817 the requirements and procedures may not provide an effective 818 date of coverage later than the date of the closing of the 819 transfer as established by the transferor, the transferee, and, 820 if applicable, the lender. 821 13. Must provide that, with respect to the coastal account, 822 any assessable insurer with a surplus as to policyholders of $25 823 million or less writing 25 percent or more of its total 824 countrywide property insurance premiums in this state may 825 petition the office, within the first 90 days of each calendar 826 year, to qualify as a limited apportionment company. A regular 827 assessment levied by the corporation on a limited apportionment 828 company for a deficit incurred by the corporation for the 829 coastal account may be paid to the corporation on a monthly 830 basis as the assessments are collected by the limited 831 apportionment company from its insureds, but a limited 832 apportionment company must begin collecting the regular 833 assessments not later than 90 days after the regular assessments 834 are levied by the corporation, and the regular assessments must 835 be paid in full within 15 months after being levied by the 836 corporation. A limited apportionment company shall collect from 837 its policyholders any emergency assessment imposed under sub 838 subparagraph (b)3.d. The plan must provide that, if the office 839 determines that any regular assessment will result in an 840 impairment of the surplus of a limited apportionment company, 841 the office may direct that all or part of such assessment be 842 deferred as provided in subparagraph (q)4. However, an emergency 843 assessment to be collected from policyholders under sub 844 subparagraph (b)3.d. may not be limited or deferred. 845 14. Must provide that the corporation appoint as its 846 licensed agents only those agents who throughout such 847 appointments also hold an appointment as defined in s. 626.015 848 by an insurer who is authorized to write and is actually writing 849 or renewing personal lines residential property coverage, 850 commercial residential property coverage, or commercial 851 nonresidential property coverage within thisthestate. 852 15. Must provide a premium payment plan option to its 853 policyholders which, at a minimum, allows for quarterly and 854 semiannual payment of premiums. A monthly payment plan may, but 855 is not required to, be offered. 856 16. Must limit coverage on mobile homes or manufactured 857 homes built before 1994 to actual cash value of the dwelling 858 rather than replacement costs of the dwelling. 859 17. Must provide coverage for manufactured or mobile home 860 dwellings. Such coverage must also include the following 861 attached structures: 862 a. Screened enclosures that are aluminum framed or screened 863 enclosures that are not covered by the same or substantially the 864 same materials as those of the primary dwelling; 865 b. Carports that are aluminum or carports that are not 866 covered by the same or substantially the same materials as those 867 of the primary dwelling; and 868 c. Patios that have a roof covering that is constructed of 869 materials that are not the same or substantially the same 870 materials as those of the primary dwelling. 871 872 The corporation shall make available a policy for mobile homes 873 or manufactured homes for a minimum insured value of at least 874 $3,000. 875 18. May provide such limits of coverage as the board 876 determines, consistent with the requirements of this subsection. 877 19. May require commercial property to meet specified 878 hurricane mitigation construction features as a condition of 879 eligibility for coverage. 880 20. Must provide that new or renewal policies issued by the 881 corporation on or after January 1, 2012, which cover sinkhole 882 loss do not include coverage for any loss to appurtenant 883 structures, driveways, sidewalks, decks, or patios that are 884 directly or indirectly caused by sinkhole activity. The 885 corporation shall exclude such coverage using a notice of 886 coverage change, which may be included with the policy renewal, 887 and not by issuance of a notice of nonrenewal of the excluded 888 coverage upon renewal of the current policy. 889 21. As of January 1, 2012, must require that the agent 890 obtain from an applicant for coverage from the corporation an 891 acknowledgment signed by the applicant,which includes, at a 892 minimum, the following statement: 893 894 ACKNOWLEDGMENT OF POTENTIAL SURCHARGE 895 AND ASSESSMENT LIABILITY: 896 897 1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE 898 CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A 899 DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON, 900 MY POLICY COULD BE SUBJECT TO SURCHARGES, WHICH WILL BE DUE AND 901 PAYABLE UPON RENEWAL, CANCELLATION, OR TERMINATION OF THE 902 POLICY, AND THAT THE SURCHARGES COULD BE AS HIGH AS 45 PERCENT 903 OF MY PREMIUM, OR A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA 904 LEGISLATURE. 905 2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER 906 SURCHARGE, WHICH COULD BE AS HIGH AS 45 PERCENT OF MY PREMIUM, 907 BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND THAT TO 908 BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN 909 PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR RENEWING COVERAGE 910 WITH CITIZENS. I UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES 911 ARE REGULATED AND APPROVED BY THE STATE. 912 3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY 913 ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER 914 INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE 915 FLORIDA LEGISLATURE. 916 4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE 917 CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE 918 STATE OF FLORIDA. 919 920 a. The corporation shall maintain, in electronic format or 921 otherwise, a copy of the applicant’s signed acknowledgment and 922 provide a copy of the statement to the policyholder as part of 923 the first renewal after the effective date of this subparagraph. 924 b. The signed acknowledgment form creates a conclusive 925 presumption that the policyholder understood and accepted his or 926 her potential surcharge and assessment liability as a 927 policyholder of the corporation. 928 22. The corporation shall pay a producing agent of record a 929 reasonable commission not to exceed the average of commissions 930 paid in the preceding year by the 20 admitted insurers writing 931 the greatest market share of property insurance in this state. 932 (n)1. Rates for coverage provided by the corporation must 933 be actuarially sound and subject to s. 627.062, except as 934 otherwise provided in this paragraph. The corporation shall file 935 its recommended rates with the office at least annually. The 936 corporation shall provide any additional information regarding 937 the rates which the office requires. The office shall consider 938 the recommendations of the board and issue a final order 939 establishing the rates for the corporation within 45 days after 940 the recommended rates are filed. The corporation may not pursue 941 an administrative challenge or judicial review of the final 942 order of the office. 943 2. In addition to the rates otherwise determined pursuant 944 to this paragraph, the corporation shall impose and collect an 945 amount equal to the premium tax provided in s. 624.509 to 946 augment the financial resources of the corporation. 947 3. IfAfterthe public hurricane loss-projection model 948 under s. 627.06281 ishas beenfound to be accurate and reliable 949 by the Florida Commission on Hurricane Loss Projection 950 Methodology, it mustthe model shallbe considered when 951 establishing the windstorm portion of the corporation’s rates. 952 The corporation may use the public model results in combination 953 with the results of private models to calculate rates for the 954 windstorm portion of the corporation’s rates. This subparagraph 955 does not require or allow the corporation to adopt rates lower 956 than the rates otherwise required or allowed by this paragraph. 957 4. The corporation must make a recommended actuarially 958 sound rate filing for each personal and commercial line of 959 business it writes. 960 5. Notwithstanding the board’s recommended rates and the 961 office’s final order regarding the corporation’s filed rates 962 under subparagraph 1., the corporation shall annually implement 963 a rate increase thatwhich, except for sinkhole coverage, does 964 not exceed the following for any single policy issued by the 965 corporation, excluding coverage changes and surcharges: 966 a. Eleven percent for 2022. 967 b. Twelve percent for 2023. 968 c. Thirteen percent for 2024. 969 d. Fourteen percent for 2025. 970 e. Fifteen percent for 2026 and all subsequent years. 971 6. The corporation may also implement an increase to 972 reflect the effect on the corporation of the cash buildup factor 973 pursuant to s. 215.555(5)(b). 974 7. The corporation’s implementation of rates as prescribed 975 in subparagraph 5. mustshallcease for any line of business 976 written by the corporation upon the corporation’s implementation 977 of actuarially sound rates. Thereafter, the corporation shall 978 annually make a recommended actuarially sound rate filing for 979 each commercial and personal line of business the corporation 980 writes. 981 8. Policies assumed by the corporation from an unsound 982 insurer shall be charged a premium for coverage that is the 983 higher of the last premium amount charged by the unsound insurer 984 or the premium charged by the corporation applicable to the 985 policy. Premiums established by the unsound insurer shall remain 986 unchanged until such time as the corporation’s rate exceeds this 987 amount and the policy becomes subject to the corporation’s 988 annually approved rate. For purposes of this subparagraph, the 989 term “unsound insurer” means an insurer determined by the Office 990 of Insurance Regulation to be in unsound condition as defined in 991 s. 624.80(2) or an insurer placed in receivership under chapter 992 631. 993 (q)1. The corporation shall certify to the office its needs 994 for annual assessments as to a particular calendar year, and for 995 any interim assessments that it deems to be necessary to sustain 996 operations as to a particular year pending the receipt of annual 997 assessments. Upon verification, the office shall approve such 998 certification, and the corporation shall levy such annual or 999 interim assessments. Such assessments shall be prorated as 1000 provided in paragraph (b). The corporation shall take all 1001 reasonable and prudent steps necessary to collect the amount of 1002 assessments due from each assessable insurer, including, if 1003 prudent, filing suit to collect the assessments, and the office 1004 may provide such assistance to the corporation it deems 1005 appropriate. If the corporation is unable to collect an 1006 assessment from any assessable insurer, the uncollected 1007 assessments shall be levied as an additional assessment against 1008 the assessable insurers and any assessable insurer required to 1009 pay an additional assessment as a result of such failure to pay 1010 shall have a cause of action against such nonpaying assessable 1011 insurer. Assessments shall be included as an appropriate factor 1012 in the making of rates. The failure of a surplus lines agent to 1013 collect and remit any regular or emergency assessment levied by 1014 the corporation is considered to be a violation of s. 626.936 1015 and subjects the surplus lines agent to the penalties provided 1016 in that section. 1017 2. The governing body of any unit of local government, any 1018 residents of which are insured by the corporation, may issue 1019 bonds as defined in s. 125.013 or s. 166.101 from time to time 1020 to fund an assistance program, in conjunction with the 1021 corporation, for the purpose of defraying deficits of the 1022 corporation. In order to avoid needless and indiscriminate 1023 proliferation, duplication, and fragmentation of such assistance 1024 programs, any unit of local government, any residents of which 1025 are insured by the corporation, may provide for the payment of 1026 losses, regardless of whether or not the losses occurred within 1027 or outside of the territorial jurisdiction of the local 1028 government. Revenue bonds under this subparagraph may not be 1029 issued until validated pursuant to chapter 75, unless a state of 1030 emergency is declared by executive order or proclamation of the 1031 Governor pursuant to s. 252.36 making such findings as are 1032 necessary to determine that it is in the best interests of, and 1033 necessary for, the protection of the public health, safety, and 1034 general welfare of residents of this state and declaring it an 1035 essential public purpose to permit certain municipalities or 1036 counties to issue such bonds as will permit relief to claimants 1037 and policyholders of the corporation. Any such unit of local 1038 government may enter into such contracts with the corporation 1039 and with any other entity created pursuant to this subsection as 1040 are necessary to carry out this paragraph. Any bonds issued 1041 under this subparagraph shall be payable from and secured by 1042 moneys received by the corporation from emergency assessments 1043 under sub-subparagraph (b)3.d., and assigned and pledged to or 1044 on behalf of the unit of local government for the benefit of the 1045 holders of such bonds. The funds, credit, property, and taxing 1046 power of the state or of the unit of local government mayshall1047 not be pledged for the payment of such bonds. 1048 3.a. The corporation shall adopt one or more programs 1049 subject to approval by the office for the reduction of both new 1050 and renewal writings in the corporation. Beginning January 1, 1051 2008, any program the corporation adopts for the payment of 1052 bonuses to an insurer for each risk the insurer removes from the 1053 corporation shall comply with s. 627.3511(2) and may not exceed 1054 the amount referenced in s. 627.3511(2) for each risk removed. 1055 The corporation may consider any prudent and not unfairly 1056 discriminatory approach to reducing corporation writings, and 1057 may adopt a credit against assessment liability or other 1058 liability that provides an incentive for insurers to take risks 1059 out of the corporation and to keep risks out of the corporation 1060 by maintaining or increasing voluntary writings in counties or 1061 areas in which corporation risks are highly concentrated and a 1062 program to provide a formula under which an insurer voluntarily 1063 taking risks out of the corporation by maintaining or increasing 1064 voluntary writings will be relieved wholly or partially from 1065 assessments under sub-subparagraph (b)3.a. However, any “take 1066 out bonus” or payment to an insurer must be conditioned on the 1067 property being insured for at least 5 years by the insurer, 1068 unless canceled or nonrenewed by the policyholder. If the policy 1069 is canceled or nonrenewed by the policyholder before the end of 1070 the 5-year period, the amount of the take-out bonus must be 1071 prorated for the time period the policy was insured. When the 1072 corporation enters into a contractual agreement for a take-out 1073 plan, the producing agent of record of the corporation policy is 1074 entitled to retain any unearned commission on such policy, and 1075 the insurer shall either: 1076 (I) Pay to the producing agent of record of the policy, for 1077 the first year, an amount which is the greater of the insurer’s 1078 usual and customary commission for the type of policy written or 1079 a policy fee equal to the usual and customary commission of the 1080 corporation; or 1081 (II) Offer to allow the producing agent of record of the 1082 policy to continue servicing the policy for a period of not less 1083 than 1 year and offer to pay the agent the insurer’s usual and 1084 customary commission for the type of policy written. If the 1085 producing agent is unwilling or unable to accept appointment by 1086 the new insurer, the new insurer shall pay the agent in 1087 accordance with sub-sub-subparagraph (I). 1088 b. Any credit or exemption from regular assessments adopted 1089 under this subparagraph shall last no longer than the 3 years 1090 following the cancellation or expiration of the policy by the 1091 corporation. With the approval of the office, the board may 1092 extend such credits for an additional year if the insurer 1093 guarantees an additional year of renewability for all policies 1094 removed from the corporation, or for 2 additional years if the 1095 insurer guarantees 2 additional years of renewability for all 1096 policies so removed. 1097 c. There shall be no credit, limitation, exemption, or 1098 deferment from emergency assessments to be collected from 1099 policyholders pursuant to sub-subparagraph (b)3.d. 1100 d. Notwithstanding any other law, for purposes of a 1101 depopulation, take-out, or keep-out program adopted by the 1102 corporation, including an initial or renewal offer of coverage 1103 made to a policyholder removed from the corporation pursuant to 1104 such program, an eligible surplus lines insurer may participate 1105 in the program in the same manner and on the same terms as an 1106 authorized insurer, except as provided under this sub 1107 subparagraph. 1108 (I) The policy count of the corporation must be more than 1109 700,000 within the 30 days before the time a takeout offer is 1110 made by a surplus lines insurer. 1111 (II) To qualify for participation, the surplus lines 1112 insurer must first obtain approval from the office for its 1113 depopulation, take-out, or keep-out plan and then comply with 1114 all of the corporation’s requirements for the plan applicable to 1115 admitted insurers and with all statutory provisions applicable 1116 to the removal of policies from the corporation. 1117 (III) In considering a surplus lines insurer’s request for 1118 approval for its plan, the office shall determine whether the 1119 surplus lines insurer meets the following requirements: 1120 (A) Maintains a surplus of $50 million on a company or 1121 pooled basis; 1122 (B) Has a superior, excellent, exceptional, or equally 1123 comparable financial strength rating by a rating agency 1124 acceptable to the office; 1125 (C) Maintains reserves, surplus, reinsurance, and 1126 reinsurance equivalents sufficient to cover the insurer’s 100 1127 year probable maximum hurricane loss at least twice in a single 1128 hurricane season and submits such reinsurance to the office to 1129 review for purposes of the take-out; 1130 (D) Provides prominent notice to the policyholder before 1131 the assumption of the policy that surplus lines policies are not 1132 provided coverage by the Florida Insurance Guaranty Association 1133 and provides an outline of any substantial differences in 1134 coverage between the existing policy and the policy being 1135 offered to the insured; and 1136 (E) Provides policy coverage similar to that provided by 1137 the corporation. 1138 (IV) To obtain approval for a plan, the surplus lines 1139 insurer must file the following with the office: 1140 (A) Information requested by the office to demonstrate 1141 compliance with s. 624.404(3), including biographical 1142 affidavits, fingerprints processed pursuant to s. 624.34, and 1143 the results of criminal history records checks for officers and 1144 directors of the insurer and its parent or holding company; 1145 (B) A service-of-process consent and agreement form 1146 executed by the insurer; 1147 (C) Proof that the insurer has been an eligible or 1148 authorized insurer for at least 3 years; 1149 (D) A duly authenticated copy of the insurer’s current 1150 audited financial statement, in English, which, in the case of 1151 statements originally made in the currencies of other countries, 1152 expresses all monetary values in United States dollars, at an 1153 exchange rate then current and shown in the statement, and 1154 including any additional information relative to the insurer as 1155 the office may request; 1156 (E) A complete certified copy of the latest official 1157 financial statement required by the insurer’s domiciliary state, 1158 if different from the statement required by sub-sub-sub 1159 subparagraph (D); and 1160 (F) If applicable, a copy of the United States trust 1161 account agreement. 1162 1163 This sub-sub-subparagraph does not subject any surplus lines 1164 insurer to requirements in addition to part VIII of chapter 626. 1165 Surplus lines brokers making an offer of coverage under this 1166 sub-subparagraph are not required to comply with s. 1167 626.916(1)(a), (b), (c), or (e). 1168 (V) Within 10 days after the date of assumption, the 1169 surplus lines insurer assuming policies from the corporation 1170 shall remit to the Bureau of Collateral Management within the 1171 Department of Financial Services a special deposit equal to the 1172 unearned premium net of unearned commissions on the assumed 1173 block of business. The surplus lines insurer shall submit to the 1174 office, along with the special deposit, an accounting of the 1175 policies assumed and the amount of unearned premium for such 1176 policies and a sworn affidavit attesting to the accuracy of the 1177 accounting by an officer of the surplus lines insurer. 1178 Thereafter, the surplus lines insurer shall make a filing within 1179 10 days after the end of each calendar quarter attesting to the 1180 unearned premium in force for the previous quarter on policies 1181 assumed from the corporation and shall submit additional funds 1182 with that filing if the special deposit is insufficient to cover 1183 the unearned premium on assumed policies, or shall receive a 1184 return of funds within 60 days if the special deposit exceeds 1185 the amount of unearned premium required for assumed policies. 1186 The special deposit is an asset of the surplus lines insurer 1187 which is held by the department for the benefit of state 1188 policyholders of the surplus lines insurer in the event of the 1189 insolvency of the surplus lines insurer. If an order of 1190 liquidation is entered in any state against the surplus lines 1191 insurer, the department may use the special deposit for payment 1192 of unearned premium or policy claims, return all or part of the 1193 deposit to the domiciliary receiver, or use the funds in 1194 accordance with any action authorized under part I of chapter 1195 631 or in compliance with any order of a court having 1196 jurisdiction over the insolvency. 1197 (VI) In advance of a surplus lines insurer assuming a 1198 policy, surplus lines brokers representing a surplus lines 1199 insurer on a take-out program shall obtain confirmation, in 1200 written or e-mail form, from each producing agent stating that 1201 the agent is willing to participate in the take-out program with 1202 the surplus lines insurer engaging in the take-out program. The 1203 take-out program is also subject to s. 627.3517. If a 1204 policyholder is selected for removal from the corporation by a 1205 surplus lines insurer and an authorized insurer, the corporation 1206 must give priority to the offer of coverage from the authorized 1207 insurer. 1208 (VII)(A) A risk that has a dwelling replacement cost of 1209 $700,000 or more or a single condominium unit that has a 1210 combined dwelling and contents replacement cost of $700,000 or 1211 more is not eligible for coverage by the corporation if it is 1212 offered comparable coverage from a qualified surplus lines 1213 insurer at a premium no greater than the premium charged by the 1214 corporation. 1215 (B) A risk that has a dwelling replacement cost below 1216 $700,000 or a single condominium unit that has a combined 1217 dwelling and contents replacement cost below $700,000 remains 1218 eligible for coverage by the corporation if it is offered 1219 coverage from a qualified surplus lines insurer. 1220 4. The plan shall provide for the deferment, in whole or in 1221 part, of the assessment of an assessable insurer, other than an 1222 emergency assessment collected from policyholders pursuant to 1223 sub-subparagraph (b)3.d., if the office finds that payment of 1224 the assessment would endanger or impair the solvency of the 1225 insurer. In the event an assessment against an assessable 1226 insurer is deferred in whole or in part, the amount by which 1227 such assessment is deferred may be assessed against the other 1228 assessable insurers in a manner consistent with the basis for 1229 assessments set forth in paragraph (b). 1230 5. Effective July 1, 2007, in order to evaluate the costs 1231 and benefits of approved take-out plans, if the corporation pays 1232 a bonus or other payment to an insurer for an approved take-out 1233 plan, it shall maintain a record of the address or such other 1234 identifying information on the property or risk removed in order 1235 to track if and when the property or risk is later insured by 1236 the corporation. 1237 6. Any policy taken out, assumed, or removed from the 1238 corporation is, as of the effective date of the take-out, 1239 assumption, or removal, direct insurance issued by the insurer 1240 and not by the corporation, even if the corporation continues to 1241 service the policies. This subparagraph applies to policies of 1242 the corporation and not policies taken out, assumed, or removed 1243 from any other entity. 1244 7. For a policy taken out, assumed, or removed from the 1245 corporation, the insurer may, for a period of no more than 3 1246 years, continue to use any of the corporation’s policy forms or 1247 endorsements that apply to the policy taken out, removed, or 1248 assumed without obtaining approval from the office for use of 1249 such policy form or endorsement. 1250 (x)1. The following records of the corporation are 1251 confidential and exempt fromthe provisions ofs. 119.07(1) and 1252 s. 24(a), Art. I of the State Constitution: 1253 a. Underwriting files, except that a policyholder or an 1254 applicant shall have access to his or her own underwriting 1255 files. Confidential and exempt underwriting file records may 1256 also be released to other governmental agencies upon written 1257 request and demonstration of need; such records held by the 1258 receiving agency remain confidential and exempt as provided 1259 herein. 1260 b. Claims files, until termination of all litigation and 1261 settlement of all claims arising out of the same incident, 1262 although portions of the claims files may remain exempt, as 1263 otherwise provided by law. Confidential and exempt claims file 1264 records may be released to other governmental agencies upon 1265 written request and demonstration of need; such records held by 1266 the receiving agency remain confidential and exempt as provided 1267 herein. 1268 c. Records obtained or generated by an internal auditor 1269 pursuant to a routine audit, until the audit is completed, or if 1270 the audit is conducted as part of an investigation, until the 1271 investigation is closed or ceases to be active. An investigation 1272 is considered “active” while the investigation is being 1273 conducted with a reasonable, good faith belief that it could 1274 lead to the filing of administrative, civil, or criminal 1275 proceedings. 1276 d. Matters reasonably encompassed in privileged attorney 1277 client communications. 1278 e. Proprietary information licensed to the corporation 1279 under contract and the contract provides for the confidentiality 1280 of such proprietary information. 1281 f. All information relating to the medical condition or 1282 medical status of a corporation employee which is not relevant 1283 to the employee’s capacity to perform his or her duties, except 1284 as otherwise provided in this paragraph. Information that is 1285 exempt includesshall include, but is not limited to, 1286 information relating to workers’ compensation, insurance 1287 benefits, and retirement or disability benefits. 1288 g. Upon an employee’s entrance into the employee assistance 1289 program, a program to assist any employee who has a behavioral 1290 or medical disorder, substance abuse problem, or emotional 1291 difficulty that affects the employee’s job performance, all 1292 records relative to that participation areshall beconfidential 1293 and exempt fromthe provisions ofs. 119.07(1) and s. 24(a), 1294 Art. I of the State Constitution, except as otherwise provided 1295 in s. 112.0455(11). 1296 h. Information relating to negotiations for financing, 1297 reinsurance, depopulation, or contractual services, until the 1298 conclusion of the negotiations. 1299 i. Minutes of closed meetings regarding underwriting files, 1300 and minutes of closed meetings regarding an open claims file 1301 until termination of all litigation and settlement of all claims 1302 with regard to that claim, except that information otherwise 1303 confidential or exempt by law mustshallbe redacted. 1304 2. If an authorized insurer, a reinsurance intermediary, an 1305 eligible surplus lines insurer, or an entity that has filed an 1306 application with the office for licensure as a property and 1307 casualty insurer in this state is considering writing or 1308 assisting in the underwriting of a risk insured by the 1309 corporation, relevant information from both the underwriting 1310 files and confidential claims files may be released to the 1311 insurer, reinsurance intermediary, eligible surplus lines 1312 insurer, or entity that has been created to seek authority to 1313 write property insurance in this state, provided that the 1314 recipientinsureragrees in writing, notarized and under oath, 1315 to maintain the confidentiality of such files. If a policy file 1316 is transferred to an insurer, that policy file is no longer a 1317 public record because it is not held by an agency subject tothe1318provisions ofthe public records law. Underwriting files and 1319 confidential claims files may also be released to staff and the 1320 board of governors of the market assistance plan established 1321 pursuant to s. 627.3515, who must retain the confidentiality of 1322 such files, except such files may be released to authorized 1323 insurers that are considering assuming the risks to which the 1324 files apply, provided the insurer agrees in writing, notarized 1325 and under oath, to maintain the confidentiality of such files. 1326 Finally, the corporation or the board or staff of the market 1327 assistance plan may make the following information obtained from 1328 underwriting files and confidential claims files available to an 1329 entity that has obtained a permit to become an authorized 1330 insurer, a reinsurer that may provide reinsurance under s. 1331 624.610, a licensed reinsurance broker, a licensed rating 1332 organization, a modeling company, or a licensed general lines 1333 insurance agent: name, address, and telephone number of the 1334 residential property owner or insured; location of the risk; 1335 rating information; loss history; and policy type. The receiving 1336 person must retain the confidentiality of the information 1337 received and may use the information only for the purposes of 1338 developing a take-out plan or a rating plan to be submitted to 1339 the office for approval or otherwise analyzing the underwriting 1340 of a risk or risks insured by the corporation on behalf of the 1341 private insurance market. A licensed general lines insurance 1342 agent may not use such information for the direct solicitation 1343 of policyholders. 1344 3. A policyholder who has filed suit against the 1345 corporation has the right to discover the contents of his or her 1346 own claims file to the same extent that discovery of such 1347 contents would be available from a private insurer in litigation 1348 as provided by the Florida Rules of Civil Procedure, the Florida 1349 Evidence Code, and other applicable law. Pursuant to subpoena, a 1350 third party has the right to discover the contents of an 1351 insured’s or applicant’s underwriting or claims file to the same 1352 extent that discovery of such contents would be available from a 1353 private insurer by subpoena as provided by the Florida Rules of 1354 Civil Procedure, the Florida Evidence Code, and other applicable 1355 law, and subject to any confidentiality protections requested by 1356 the corporation and agreed to by the seeking party or ordered by 1357 the court. The corporation may release confidential underwriting 1358 and claims file contents and information as it deems necessary 1359 and appropriate to underwrite or service insurance policies and 1360 claims, subject to any confidentiality protections deemed 1361 necessary and appropriate by the corporation. 1362 4. Portions of meetings of the corporation are exempt from 1363the provisions ofs. 286.011 and s. 24(b), Art. I of the State 1364 Constitution wherein confidential underwriting files or 1365 confidential open claims files are discussed. All portions of 1366 corporation meetings which are closed to the public shall be 1367 recorded by a court reporter. The court reporter shall record 1368 the times of commencement and termination of the meeting, all 1369 discussion and proceedings, the names of all persons present at 1370 any time, and the names of all persons speaking. No portion of 1371 any closed meeting shall be off the record. Subject to the 1372 provisions hereof and s. 119.07(1)(d)-(f), the court reporter’s 1373 notes of any closed meeting shall be retained by the corporation 1374 for a minimum of 5 years. A copy of the transcript, less any 1375 exempt matters, of any closed meeting wherein claims are 1376 discussed shall become public as to individual claims after 1377 settlement of the claim. 1378 Section 3. Section 627.3517, Florida Statutes, is amended 1379 to read: 1380 627.3517 Consumer choice.—No provision of s. 627.351, s. 1381 627.3511, or s. 627.3515 shall be construed to impair the right 1382 of any insurance risk apportionment plan policyholder, upon 1383 receipt of any keep-outkeepoutor take-out offer, to retain his 1384 or her current agent, so long as that agent is duly licensed and 1385 appointed by the insurance risk apportionment plan or otherwise 1386 authorized to place business with the insurance risk 1387 apportionment plan. This right mayshallnot be canceled, 1388 suspended, impeded, abridged, or otherwise compromised by any 1389 rule, plan of operation, or depopulation plan, whether through 1390 keep-outkeepout, take-out, midterm assumption, or any other 1391 means, of any insurance risk apportionment plan or depopulation 1392 plan, including, but not limited to, those described in s. 1393 627.351, s. 627.3511, or s. 627.3515. The commission shall adopt 1394 any rules necessary to cause any insurance risk apportionment 1395 plan or market assistance plan under such sections to 1396 demonstrate that the operations of the plan do not interfere 1397 with, promote, or allow interference with the rights created 1398 under this section. If the policyholder’s current agent is 1399 unable or unwilling to be appointed with the insurer making the 1400 take-out or keep-outkeepoutoffer, the policyholder isshall1401 notbedisqualified from participation in the appropriate 1402 insurance risk apportionment plan because of an offer of 1403 coverage in the voluntary market. An offer of full property 1404 insurance coverage by the insurer currently insuring either the 1405 ex-wind or wind-only coverage on the policy to which the offer 1406 applies isshallnotbeconsidered a take-out or keep-out 1407keepoutoffer. Any rule, plan of operation, or plan of 1408 depopulation, through keep-outkeepout, take-out, midterm 1409 assumption, or any other means, of any property insurance risk 1410 apportionment plan under s. 627.351(2) or (6) is subject to ss. 1411 627.351(2)(b) and (6)(c) and 627.3511(4). 1412 Section 4. Subsection (5) of section 627.3518, Florida 1413 Statutes, is amended, and paragraph (a) of subsection (6) and 1414 paragraph (a) of subsection (7) of that section are reenacted, 1415 to read: 1416 627.3518 Citizens Property Insurance Corporation 1417 policyholder eligibility clearinghouse program.—The purpose of 1418 this section is to provide a framework for the corporation to 1419 implement a clearinghouse program by January 1, 2014. 1420 (5) Notwithstanding s. 627.3517, any applicant for new 1421 coverage from the corporation is not eligible for coverage from 1422 the corporation if provided an offer of coverage from an 1423 authorized insurer through the program at a premium that is at 1424 or below the eligibility threshold established in s. 1425 627.351(6)(c)5.a. Whenever an offer of coverage for a personal 1426 lines risk is received for a policyholder of the corporation at 1427 renewal from an authorized insurer through the program, if the 1428 offer is at or below the eligibility threshold specified in s. 1429 627.351(6)(c)5.a.equal to or less than the corporation’s1430renewal premium for comparable coverage, the risk is not 1431 eligible for coverage with the corporation. In the event that an 1432 offer of coverage for a new applicant or a personal lines risk 1433 at renewal is received from an authorized insurer through the 1434 program, and the premium offered exceeds the eligibility 1435 thresholds specifiedthreshold containedin s. 1436 627.351(6)(c)5.a., the applicant or insured may elect to accept 1437 such coverage, or may elect to accept or continue coverage with 1438 the corporation.In the event an offer of coverage for a1439personal lines risk is received from an authorized insurer at1440renewal through the program, and the premium offered is more1441than the corporation’s renewal premium for comparable coverage,1442the insured may elect to accept such coverage, or may elect to1443accept or continue coverage with the corporation.Section 1444 627.351(6)(c)5.a.(I) does not apply to an offer of coverage from 1445 an authorized insurer obtained through the program. An applicant 1446 for coverage from the corporation who was declared ineligible 1447 for coverage at renewal by the corporation in the previous 36 1448 months due to an offer of coverage pursuant to this subsection 1449 shall be considered a renewal under this section if the 1450 corporation determines that the authorized insurer making the 1451 offer of coverage pursuant to this subsection continues to 1452 insure the applicant and increased the rate on the policy in 1453 excess of the increase allowed for the corporation under s. 1454 627.351(6)(n)5. 1455 (6) Independent insurance agents submitting new 1456 applications for coverage or that are the agent of record on a 1457 renewal policy submitted to the program: 1458 (a) Are granted and must maintain ownership and the 1459 exclusive use of expirations, records, or other written or 1460 electronic information directly related to such applications or 1461 renewals written through the corporation or through an insurer 1462 participating in the program, notwithstanding s. 1463 627.351(6)(c)5.a.(I)(B) and (II)(B). Such ownership is granted 1464 for as long as the insured remains with the agency or until sold 1465 or surrendered in writing by the agent. Contracts with the 1466 corporation or required by the corporation must not amend, 1467 modify, interfere with, or limit such rights of ownership. Such 1468 expirations, records, or other written or electronic information 1469 may be used to review an application, issue a policy, or for any 1470 other purpose necessary for placing such business through the 1471 program. 1472 1473 Applicants ineligible for coverage in accordance with subsection 1474 (5) remain ineligible if their independent agent is unwilling or 1475 unable to enter into a standard or limited agency agreement with 1476 an insurer participating in the program. 1477 (7) Exclusive agents submitting new applications for 1478 coverage or that are the agent of record on a renewal policy 1479 submitted to the program: 1480 (a) Must maintain ownership and the exclusive use of 1481 expirations, records, or other written or electronic information 1482 directly related to such applications or renewals written 1483 through the corporation or through an insurer participating in 1484 the program, notwithstanding s. 627.351(6)(c)5.a.(I)(B) and 1485 (II)(B). Contracts with the corporation or required by the 1486 corporation must not amend, modify, interfere with, or limit 1487 such rights of ownership. Such expirations, records, or other 1488 written or electronic information may be used to review an 1489 application, issue a policy, or for any other purpose necessary 1490 for placing such business through the program. 1491 1492 Applicants ineligible for coverage in accordance with subsection 1493 (5) remain ineligible if their exclusive agent is unwilling or 1494 unable to enter into a standard or limited agency agreement with 1495 an insurer making an offer of coverage to that applicant. 1496 Section 5. This act shall take effect January 1, 2023.