Bill Text: FL S1672 | 2014 | Regular Session | Enrolled
Bill Title: Property Insurance
Spectrum: Committee Bill
Status: (Passed) 2014-06-13 - Chapter No. 2014-104 [S1672 Detail]
Download: Florida-2014-S1672-Enrolled.html
ENROLLED
2014 Legislature CS for CS for SB 1672, 2nd Engrossed
20141672er
1
2 An act relating to property insurance; amending s.
3 626.621, F.S.; providing additional grounds for
4 refusing, suspending, or revoking a license or
5 appointment of an insurance agent, adjuster, customer
6 representative, or managing general agent based on the
7 acceptance of payment for certain referrals; amending
8 s. 626.854, F.S.; prohibiting a public adjuster or
9 public adjuster apprentice from choosing the persons
10 or entities that will perform repair work in a
11 property insurance claim; amending s. 627.351, F.S.;
12 deleting reference to the Residential Property and
13 Casualty Joint Underwriting Association with respect
14 to issuing certain residential or commercial policies;
15 requiring the corporation to cease offering new
16 commercial residential policies providing multiperil
17 coverage after a certain date and continue offering
18 commercial residential wind-only policies; authorizing
19 the corporation to offer commercial residential
20 policies excluding wind; providing exceptions;
21 requiring the corporation’s board to contract with the
22 Division of Administrative Hearings to hear protests
23 of the corporation’s decisions regarding the purchase
24 of commodities and contractual services and issue a
25 recommended order; requiring the board to take final
26 action in a public meeting; revising the date for
27 submitting the annual loss-ratio report for
28 residential coverage; repealing s. 627.3519, F.S.,
29 relating to an annual report requirement for aggregate
30 net probable maximum losses; amending s. 627.35191,
31 F.S.; requiring the corporation to annually provide
32 certain estimates for the next 12-month period to the
33 Legislature and the Financial Services Commission;
34 amending s. 627.711, F.S.; prohibiting a mitigation
35 inspector from offering or delivering compensation,
36 and an insurance agency, agent, customer
37 representative, or employee from accepting
38 compensation for referring an owner to the inspector
39 or inspection company; authorizing an insurer to
40 exempt a uniform mitigation verification form from
41 independent verification under certain circumstances;
42 providing that the form provided to the corporation is
43 not subject to verification and the property is not
44 subject to reinspection under certain circumstances;
45 amending s. 817.234, F.S.; prohibiting a contractor
46 from paying, waiving, or rebating a property insurance
47 deductible; providing penalties; providing effective
48 dates.
49
50 Be It Enacted by the Legislature of the State of Florida:
51
52 Section 1. Subsection (15) is added to section 626.621,
53 Florida Statutes, to read:
54 626.621 Grounds for discretionary refusal, suspension, or
55 revocation of agent’s, adjuster’s, customer representative’s,
56 service representative’s, or managing general agent’s license or
57 appointment.—The department may, in its discretion, deny an
58 application for, suspend, revoke, or refuse to renew or continue
59 the license or appointment of any applicant, agent, adjuster,
60 customer representative, service representative, or managing
61 general agent, and it may suspend or revoke the eligibility to
62 hold a license or appointment of any such person, if it finds
63 that as to the applicant, licensee, or appointee any one or more
64 of the following applicable grounds exist under circumstances
65 for which such denial, suspension, revocation, or refusal is not
66 mandatory under s. 626.611:
67 (15) Directly or indirectly accepting any compensation,
68 inducement, or reward from an inspector for the referral of the
69 owner of the inspected property to the inspector or inspection
70 company. This prohibition applies to an inspection intended for
71 submission to an insurer in order to obtain property insurance
72 coverage or establish the applicable property insurance premium.
73 Section 2. Subsection (18) of section 626.854, Florida
74 Statutes, is redesignated as subsection (19) and amended, and
75 subsection (18) is added to that section, to read:
76 626.854 “Public adjuster” defined; prohibitions.—The
77 Legislature finds that it is necessary for the protection of the
78 public to regulate public insurance adjusters and to prevent the
79 unauthorized practice of law.
80 (18) A public adjuster, a public adjuster apprentice, or a
81 person acting on behalf of an adjuster or apprentice may not
82 enter into a contract or accept a power of attorney that vests
83 in the public adjuster, the public adjuster apprentice, or the
84 person acting on behalf of the adjuster or apprentice the
85 effective authority to choose the persons or entities that will
86 perform repair work in a property insurance claim.
87 (19)(18) The provisions of Subsections (5)-(18) (5)-(17)
88 apply only to residential property insurance policies and
89 condominium unit owner policies as described defined in s.
90 718.111(11).
91 Section 3. Paragraphs (b), (e), and (hh) of subsection (6)
92 of section 627.351, Florida Statutes, are amended to read:
93 627.351 Insurance risk apportionment plans.—
94 (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
95 (b)1. All insurers authorized to write one or more subject
96 lines of business in this state are subject to assessment by the
97 corporation and, for the purposes of this subsection, are
98 referred to collectively as “assessable insurers.” Insurers
99 writing one or more subject lines of business in this state
100 pursuant to part VIII of chapter 626 are not assessable
101 insurers; however, but insureds who procure one or more subject
102 lines of business in this state pursuant to part VIII of chapter
103 626 are subject to assessment by the corporation and are
104 referred to collectively as “assessable insureds.” An insurer’s
105 assessment liability begins on the first day of the calendar
106 year following the year in which the insurer was issued a
107 certificate of authority to transact insurance for subject lines
108 of business in this state and terminates 1 year after the end of
109 the first calendar year during which the insurer no longer holds
110 a certificate of authority to transact insurance for subject
111 lines of business in this state.
112 2.a. All revenues, assets, liabilities, losses, and
113 expenses of the corporation shall be divided into three separate
114 accounts as follows:
115 (I) A personal lines account for personal residential
116 policies issued by the corporation, or issued by the Residential
117 Property and Casualty Joint Underwriting Association and renewed
118 by the corporation, which provides comprehensive, multiperil
119 coverage on risks that are not located in areas eligible for
120 coverage by the Florida Windstorm Underwriting Association as
121 those areas were defined on January 1, 2002, and for policies
122 that do not provide coverage for the peril of wind on risks that
123 are located in such areas;
124 (II) A commercial lines account for commercial residential
125 and commercial nonresidential policies issued by the
126 corporation, or issued by the Residential Property and Casualty
127 Joint Underwriting Association and renewed by the corporation,
128 which provides coverage for basic property perils on risks that
129 are not located in areas eligible for coverage by the Florida
130 Windstorm Underwriting Association as those areas were defined
131 on January 1, 2002, and for policies that do not provide
132 coverage for the peril of wind on risks that are located in such
133 areas; and
134 (III) A coastal account for personal residential policies
135 and commercial residential and commercial nonresidential
136 property policies issued by the corporation, or transferred to
137 the corporation, which provides coverage for the peril of wind
138 on risks that are located in areas eligible for coverage by the
139 Florida Windstorm Underwriting Association as those areas were
140 defined on January 1, 2002. The corporation may offer policies
141 that provide multiperil coverage and the corporation shall
142 continue to offer policies that provide coverage only for the
143 peril of wind for risks located in areas eligible for coverage
144 in the coastal account. Effective July 1, 2014, the corporation
145 shall cease offering new commercial residential policies
146 providing multiperil coverage and shall instead continue to
147 offer commercial residential wind-only policies, and may offer
148 commercial residential policies excluding wind. The corporation
149 may, however, continue to renew a commercial residential
150 multiperil policy on a building that is insured by the
151 corporation on June 30, 2014, under a multiperil policy. In
152 issuing multiperil coverage, the corporation may use its
153 approved policy forms and rates for the personal lines account.
154 An applicant or insured who is eligible to purchase a multiperil
155 policy from the corporation may purchase a multiperil policy
156 from an authorized insurer without prejudice to the applicant’s
157 or insured’s eligibility to prospectively purchase a policy that
158 provides coverage only for the peril of wind from the
159 corporation. An applicant or insured who is eligible for a
160 corporation policy that provides coverage only for the peril of
161 wind may elect to purchase or retain such policy and also
162 purchase or retain coverage excluding wind from an authorized
163 insurer without prejudice to the applicant’s or insured’s
164 eligibility to prospectively purchase a policy that provides
165 multiperil coverage from the corporation. It is the goal of the
166 Legislature that there be an overall average savings of 10
167 percent or more for a policyholder who currently has a wind-only
168 policy with the corporation, and an ex-wind policy with a
169 voluntary insurer or the corporation, and who obtains a
170 multiperil policy from the corporation. It is the intent of the
171 Legislature that the offer of multiperil coverage in the coastal
172 account be made and implemented in a manner that does not
173 adversely affect the tax-exempt status of the corporation or
174 creditworthiness of or security for currently outstanding
175 financing obligations or credit facilities of the coastal
176 account, the personal lines account, or the commercial lines
177 account. The coastal account must also include quota share
178 primary insurance under subparagraph (c)2. The area eligible for
179 coverage under the coastal account also includes the area within
180 Port Canaveral, which is bordered on the south by the City of
181 Cape Canaveral, bordered on the west by the Banana River, and
182 bordered on the north by Federal Government property.
183 b. The three separate accounts must be maintained as long
184 as financing obligations entered into by the Florida Windstorm
185 Underwriting Association or Residential Property and Casualty
186 Joint Underwriting Association are outstanding, in accordance
187 with the terms of the corresponding financing documents. If the
188 financing obligations are no longer outstanding, the corporation
189 may use a single account for all revenues, assets, liabilities,
190 losses, and expenses of the corporation. Consistent with this
191 subparagraph and prudent investment policies that minimize the
192 cost of carrying debt, the board shall exercise its best efforts
193 to retire existing debt or obtain the approval of necessary
194 parties to amend the terms of existing debt, so as to structure
195 the most efficient plan for consolidating to consolidate the
196 three separate accounts into a single account.
197 c. Creditors of the Residential Property and Casualty Joint
198 Underwriting Association and the accounts specified in sub-sub
199 subparagraphs a.(I) and (II) may have a claim against, and
200 recourse to, those accounts and no claim against, or recourse
201 to, the account referred to in sub-sub-subparagraph a.(III).
202 Creditors of the Florida Windstorm Underwriting Association have
203 a claim against, and recourse to, the account referred to in
204 sub-sub-subparagraph a.(III) and no claim against, or recourse
205 to, the accounts referred to in sub-sub-subparagraphs a.(I) and
206 (II).
207 d. Revenues, assets, liabilities, losses, and expenses not
208 attributable to particular accounts shall be prorated among the
209 accounts.
210 e. The Legislature finds that the revenues of the
211 corporation are revenues that are necessary to meet the
212 requirements set forth in documents authorizing the issuance of
213 bonds under this subsection.
214 f. The income of the corporation may not inure to the
215 benefit of any private person.
216 3. With respect to a deficit in an account:
217 a. After accounting for the Citizens policyholder surcharge
218 imposed under sub-subparagraph i., if the remaining projected
219 deficit incurred in the coastal account in a particular calendar
220 year:
221 (I) Is not greater than 2 percent of the aggregate
222 statewide direct written premium for the subject lines of
223 business for the prior calendar year, the entire deficit shall
224 be recovered through regular assessments of assessable insurers
225 under paragraph (q) and assessable insureds.
226 (II) Exceeds 2 percent of the aggregate statewide direct
227 written premium for the subject lines of business for the prior
228 calendar year, the corporation shall levy regular assessments on
229 assessable insurers under paragraph (q) and on assessable
230 insureds in an amount equal to the greater of 2 percent of the
231 projected deficit or 2 percent of the aggregate statewide direct
232 written premium for the subject lines of business for the prior
233 calendar year. Any remaining projected deficit shall be
234 recovered through emergency assessments under sub-subparagraph
235 d.
236 b. Each assessable insurer’s share of the amount being
237 assessed under sub-subparagraph a. must be in the proportion
238 that the assessable insurer’s direct written premium for the
239 subject lines of business for the year preceding the assessment
240 bears to the aggregate statewide direct written premium for the
241 subject lines of business for that year. The assessment
242 percentage applicable to each assessable insured is the ratio of
243 the amount being assessed under sub-subparagraph a. to the
244 aggregate statewide direct written premium for the subject lines
245 of business for the prior year. Assessments levied by the
246 corporation on assessable insurers under sub-subparagraph a.
247 must be paid as required by the corporation’s plan of operation
248 and paragraph (q). Assessments levied by the corporation on
249 assessable insureds under sub-subparagraph a. shall be collected
250 by the surplus lines agent at the time the surplus lines agent
251 collects the surplus lines tax required by s. 626.932, and paid
252 to the Florida Surplus Lines Service Office at the time the
253 surplus lines agent pays the surplus lines tax to that office.
254 Upon receipt of regular assessments from surplus lines agents,
255 the Florida Surplus Lines Service Office shall transfer the
256 assessments directly to the corporation as determined by the
257 corporation.
258 c. After accounting for the Citizens policyholder surcharge
259 imposed under sub-subparagraph i., the remaining projected
260 deficits in the personal lines account and in the commercial
261 lines account in a particular calendar year shall be recovered
262 through emergency assessments under sub-subparagraph d.
263 d. Upon a determination by the board of governors that a
264 projected deficit in an account exceeds the amount that is
265 expected to be recovered through regular assessments under sub
266 subparagraph a., plus the amount that is expected to be
267 recovered through surcharges under sub-subparagraph i., the
268 board, after verification by the office, shall levy emergency
269 assessments for as many years as necessary to cover the
270 deficits, to be collected by assessable insurers and the
271 corporation and collected from assessable insureds upon issuance
272 or renewal of policies for subject lines of business, excluding
273 National Flood Insurance policies. The amount collected in a
274 particular year must be a uniform percentage of that year’s
275 direct written premium for subject lines of business and all
276 accounts of the corporation, excluding National Flood Insurance
277 Program policy premiums, as annually determined by the board and
278 verified by the office. The office shall verify the arithmetic
279 calculations involved in the board’s determination within 30
280 days after receipt of the information on which the determination
281 was based. The office shall notify assessable insurers and the
282 Florida Surplus Lines Service Office of the date on which
283 assessable insurers shall begin to collect and assessable
284 insureds shall begin to pay such assessment. The date must be at
285 least may be not less than 90 days after the date the
286 corporation levies emergency assessments pursuant to this sub
287 subparagraph. Notwithstanding any other provision of law, the
288 corporation and each assessable insurer that writes subject
289 lines of business shall collect emergency assessments from its
290 policyholders without such obligation being affected by any
291 credit, limitation, exemption, or deferment. Emergency
292 assessments levied by the corporation on assessable insureds
293 shall be collected by the surplus lines agent at the time the
294 surplus lines agent collects the surplus lines tax required by
295 s. 626.932 and paid to the Florida Surplus Lines Service Office
296 at the time the surplus lines agent pays the surplus lines tax
297 to that office. The emergency assessments collected shall be
298 transferred directly to the corporation on a periodic basis as
299 determined by the corporation and held by the corporation solely
300 in the applicable account. The aggregate amount of emergency
301 assessments levied for an account under this sub-subparagraph in
302 any calendar year may be less than but may not exceed the
303 greater of 10 percent of the amount needed to cover the deficit,
304 plus interest, fees, commissions, required reserves, and other
305 costs associated with financing the original deficit, or 10
306 percent of the aggregate statewide direct written premium for
307 subject lines of business and all accounts of the corporation
308 for the prior year, plus interest, fees, commissions, required
309 reserves, and other costs associated with financing the deficit.
310 e. The corporation may pledge the proceeds of assessments,
311 projected recoveries from the Florida Hurricane Catastrophe
312 Fund, other insurance and reinsurance recoverables, policyholder
313 surcharges and other surcharges, and other funds available to
314 the corporation as the source of revenue for and to secure bonds
315 issued under paragraph (q), bonds or other indebtedness issued
316 under subparagraph (c)3., or lines of credit or other financing
317 mechanisms issued or created under this subsection, or to retire
318 any other debt incurred as a result of deficits or events giving
319 rise to deficits, or in any other way that the board determines
320 will efficiently recover such deficits. The purpose of the lines
321 of credit or other financing mechanisms is to provide additional
322 resources to assist the corporation in covering claims and
323 expenses attributable to a catastrophe. As used in this
324 subsection, the term “assessments” includes regular assessments
325 under sub-subparagraph a. or subparagraph (q)1. and emergency
326 assessments under sub-subparagraph d. Emergency assessments
327 collected under sub-subparagraph d. are not part of an insurer’s
328 rates, are not premium, and are not subject to premium tax,
329 fees, or commissions; however, failure to pay the emergency
330 assessment shall be treated as failure to pay premium. The
331 emergency assessments under sub-subparagraph d. shall continue
332 as long as any bonds issued or other indebtedness incurred with
333 respect to a deficit for which the assessment was imposed remain
334 outstanding, unless adequate provision has been made for the
335 payment of such bonds or other indebtedness pursuant to the
336 documents governing such bonds or indebtedness.
337 f. As used in this subsection for purposes of any deficit
338 incurred on or after January 25, 2007, the term “subject lines
339 of business” means insurance written by assessable insurers or
340 procured by assessable insureds for all property and casualty
341 lines of business in this state, but not including workers’
342 compensation or medical malpractice. As used in this sub
343 subparagraph, the term “property and casualty lines of business”
344 includes all lines of business identified on Form 2, Exhibit of
345 Premiums and Losses, in the annual statement required of
346 authorized insurers under s. 624.424 and any rule adopted under
347 this section, except for those lines identified as accident and
348 health insurance and except for policies written under the
349 National Flood Insurance Program or the Federal Crop Insurance
350 Program. For purposes of this sub-subparagraph, the term
351 “workers’ compensation” includes both workers’ compensation
352 insurance and excess workers’ compensation insurance.
353 g. The Florida Surplus Lines Service Office shall determine
354 annually the aggregate statewide written premium in subject
355 lines of business procured by assessable insureds and report
356 that information to the corporation in a form and at a time the
357 corporation specifies to ensure that the corporation can meet
358 the requirements of this subsection and the corporation’s
359 financing obligations.
360 h. The Florida Surplus Lines Service Office shall verify
361 the proper application by surplus lines agents of assessment
362 percentages for regular assessments and emergency assessments
363 levied under this subparagraph on assessable insureds and assist
364 the corporation in ensuring the accurate, timely collection and
365 payment of assessments by surplus lines agents as required by
366 the corporation.
367 i. In 2008 or thereafter, Upon a determination by the board
368 of governors that an account has a projected deficit, the board
369 shall levy a Citizens policyholder surcharge against all
370 policyholders of the corporation.
371 (I) The surcharge shall be levied as a uniform percentage
372 of the premium for the policy of up to 15 percent of such
373 premium, which funds shall be used to offset the deficit.
374 (II) The surcharge is payable upon cancellation or
375 termination of the policy, upon renewal of the policy, or upon
376 issuance of a new policy by the corporation within the first 12
377 months after the date of the levy or the period of time
378 necessary to fully collect the surcharge amount.
379 (III) The corporation may not levy any regular assessments
380 under paragraph (q) pursuant to sub-subparagraph a. or sub
381 subparagraph b. with respect to a particular year’s deficit
382 until the corporation has first levied the full amount of the
383 surcharge authorized by this sub-subparagraph.
384 (IV) The surcharge is not considered premium and is not
385 subject to commissions, fees, or premium taxes. However, failure
386 to pay the surcharge shall be treated as failure to pay premium.
387 j. If the amount of any assessments or surcharges collected
388 from corporation policyholders, assessable insurers or their
389 policyholders, or assessable insureds exceeds the amount of the
390 deficits, such excess amounts shall be remitted to and retained
391 by the corporation in a reserve to be used by the corporation,
392 as determined by the board of governors and approved by the
393 office, to pay claims or reduce any past, present, or future
394 plan-year deficits or to reduce outstanding debt.
395 (e) The corporation is subject to s. 287.057 for the
396 purchase of commodities and contractual services except as
397 otherwise provided in this paragraph. Services provided by
398 tradepersons or technical experts to assist a licensed adjuster
399 in the evaluation of individual claims are not subject to the
400 procurement requirements of this section. Additionally, the
401 procurement of financial services providers and underwriters
402 must be made pursuant to s. 627.3513. Contracts for goods or
403 services valued at or more than $100,000 are subject to approval
404 by the board.
405 1. The corporation is an agency for purposes of s. 287.057,
406 except that, for purposes of s. 287.057(22), the corporation is
407 an eligible user.
408 a. The authority of the Department of Management Services
409 and the Chief Financial Officer under s. 287.057 extends to the
410 corporation as if the corporation were an agency.
411 b. The executive director of the corporation is the agency
412 head under s. 287.057, except for resolution of bid protests for
413 which the board would serve as the agency head.
414 2. The corporation must provide notice of a decision or
415 intended decision concerning a solicitation, contract award, or
416 exceptional purchase by electronic posting. Such notice must
417 contain the following statement: “Failure to file a protest
418 within the time prescribed in this section constitutes a waiver
419 of proceedings.”
420 a. A person adversely affected by the corporation’s
421 decision or intended decision to award a contract pursuant to s.
422 287.057(1) or (3)(c) who elects to challenge the decision must
423 file a written notice of protest with the executive director of
424 the corporation within 72 hours after the corporation posts a
425 notice of its decision or intended decision. For a protest of
426 the terms, conditions, and specifications contained in a
427 solicitation, including any provisions governing the methods for
428 ranking bids, proposals, replies, awarding contracts, reserving
429 rights of further negotiation, or modifying or amending any
430 contract, the notice of protest must be filed in writing within
431 72 hours after the posting of the solicitation. Saturdays,
432 Sundays, and state holidays are excluded in the computation of
433 the 72-hour time period.
434 b. A formal written protest must be filed within 10 days
435 after the date the notice of protest is filed. The formal
436 written protest must state with particularity the facts and law
437 upon which the protest is based. Upon receipt of a formal
438 written protest that has been timely filed, the corporation must
439 stop the solicitation or contract award process until the
440 subject of the protest is resolved by final board action unless
441 the executive director sets forth in writing particular facts
442 and circumstances that require the continuance of the
443 solicitation or contract award process without delay in order to
444 avoid an immediate and serious danger to the public health,
445 safety, or welfare.
446 (I) The corporation must provide an opportunity to resolve
447 the protest by mutual agreement between the parties within 7
448 business days after receipt of the formal written protest.
449 (II) If the subject of a protest is not resolved by mutual
450 agreement within 7 business days, the corporation’s board must
451 transmit the protest to the Division of Administrative Hearings
452 and contract with the division to conduct a hearing to determine
453 the merits of the protest and to issue a recommended order place
454 the protest on the agenda and resolve it at its next regularly
455 scheduled meeting. The contract must provide for the corporation
456 to reimburse the division for any costs incurred by the division
457 for court reporters, transcript preparation, travel, facility
458 rental, and other customary hearing costs in the manner set
459 forth in s. 120.65(9). The division has jurisdiction to
460 determine the facts and law concerning the protest and to issue
461 a recommended order. The division’s rules and procedures apply
462 to these proceedings; the division’s applicable bond
463 requirements do not apply. The protest must be heard by the
464 division board at a publicly noticed meeting in accordance with
465 procedures established by the division board.
466 c. In a protest of an invitation-to-bid or request-for
467 proposals procurement, submissions made after the bid or
468 proposal opening which amend or supplement the bid or proposal
469 may not be considered. In protesting an invitation-to-negotiate
470 procurement, submissions made after the corporation announces
471 its intent to award a contract, reject all replies, or withdraw
472 the solicitation that amends or supplements the reply may not be
473 considered. Unless otherwise provided by law, the burden of
474 proof rests with the party protesting the corporation’s action.
475 In a competitive-procurement protest, other than a rejection of
476 all bids, proposals, or replies, the administrative law judge
477 corporation’s board must conduct a de novo proceeding to
478 determine whether the corporation’s proposed action is contrary
479 to the corporation’s governing statutes, the corporation’s rules
480 or policies, or the solicitation specifications. The standard of
481 proof for the proceeding is whether the corporation’s action was
482 clearly erroneous, contrary to competition, arbitrary, or
483 capricious. In any bid-protest proceeding contesting an intended
484 corporation action to reject all bids, proposals, or replies,
485 the standard of review by the board is whether the corporation’s
486 intended action is illegal, arbitrary, dishonest, or fraudulent.
487 d. Failure to file a notice of protest or failure to file a
488 formal written protest constitutes a waiver of proceedings.
489 3. The board, acting as agency head, shall consider the
490 recommended order of an administrative law judge in a public
491 meeting and take final action on the protest. Contract actions
492 and decisions by the board under this paragraph are final. Any
493 further legal remedy lies with the First District Court of
494 Appeal must be made in the Circuit Court of Leon County.
495 (hh) The corporation shall must prepare a report for each
496 calendar year outlining both the statewide average and county
497 specific details of the loss ratio attributable to losses that
498 are not catastrophic losses for residential coverage provided by
499 the corporation, which information must be presented to the
500 office and available for public inspection on the Internet
501 website of the corporation by March 1 January 15th of the
502 following calendar year.
503 Section 4. Section 627.3519, Florida Statutes, is repealed.
504 Section 5. Section 627.35191, Florida Statutes, is amended
505 to read:
506 627.35191 Required reports Annual report of aggregate net
507 probable maximum losses, financing options, and potential
508 assessments.—
509 (1) By No later than February 1 of each year, the Florida
510 Hurricane Catastrophe Fund and Citizens Property Insurance
511 Corporation shall each submit a report to the Legislature and
512 the Financial Services Commission identifying their respective
513 aggregate net probable maximum losses, financing options, and
514 potential assessments. The report issued by the fund and the
515 corporation must include their respective 50-year, 100-year, and
516 250-year probable maximum losses; analysis of all reasonable
517 financing strategies for each such probable maximum loss,
518 including the amount and term of debt instruments; specification
519 of the percentage assessments that would be needed to support
520 each of the financing strategies; and calculations of the
521 aggregate assessment burden on Florida property and casualty
522 policyholders for each of the probable maximum losses.
523 (2) In May of each year, Citizens Property Insurance
524 Corporation shall also provide to the Legislature and the
525 Financial Services Commission a statement of the estimated
526 borrowing capacity of the corporation for the next 12-month
527 period, the estimated claims-paying capacity of the corporation,
528 and the corporation’s estimated balance as of December 31 of the
529 current calendar year. Such estimates must take into account
530 that the corporation, the Florida Hurricane Catastrophe Fund,
531 and the Florida Insurance Guaranty Association may all be
532 concurrently issuing debt instruments following a catastrophic
533 event.
534 Section 6. Present subsections (6) through (8) of section
535 627.711, Florida Statues, are redesignated as subsections (7)
536 through (9), respectively, a new subsection (6) is added to that
537 section, and present subsection (8) of that section is amended,
538 to read:
539 627.711 Notice of premium discounts for hurricane loss
540 mitigation; uniform mitigation verification inspection form.—
541 (6)(a) An authorized mitigation inspector may not directly
542 or indirectly offer or deliver any compensation, inducement, or
543 reward to an insurance agency, insurance agent, customer
544 representative, or an employee of an insurance agency for the
545 referral of the owner of the inspected property to the inspector
546 or the inspection company. Section 455.227(1)(k) applies to
547 applicable licensees in violation of this paragraph.
548 (b) An insurance agency, insurance agent, customer
549 representative, or an employee of an insurance agency may not
550 directly or indirectly receive or accept any compensation,
551 inducement, or reward from an authorized mitigation inspector
552 for the referral of the owner of the inspected property to the
553 inspector or the inspection company. Sections 626.621(2) and
554 626.6215(5)(d) apply to a violation of this paragraph.
555 (9)(8) At its expense, the insurer may require that a
556 uniform mitigation verification form provided by a policyholder,
557 a policyholder’s agent, or an authorized mitigation inspector or
558 inspection company be independently verified by an inspector, an
559 inspection company, or an independent third-party quality
560 assurance provider that which possesses a quality assurance
561 program before accepting the uniform mitigation verification
562 form as valid. At its option, the insurer may exempt from
563 independent verification a uniform mitigation verification form
564 completed by an authorized mitigation inspector or inspection
565 company that possesses a quality assurance program approved by
566 the insurer. A uniform mitigation verification form provided by
567 a policyholder, a policyholder’s agent, or an authorized
568 mitigation inspector or inspection company to Citizens Property
569 Insurance Corporation is not subject to independent verification
570 and the property is not subject to reinspection by the
571 corporation, absent material changes to the structure during the
572 term stated on the form, if the form was signed by an authorized
573 mitigation inspector and submitted to, reviewed by, and verified
574 by a quality assurance program approved by the corporation
575 before submission of the form to the corporation.
576 Section 7. Paragraph (d) is added to subsection (7) of
577 section 817.234, Florida Statutes, to read:
578 817.234 False and fraudulent insurance claims.—
579 (7)
580 (d) A contractor, or a person acting on behalf of a
581 contractor, may not knowingly or willfully and with intent to
582 injure, defraud, or deceive, pay, waive, or rebate all or part
583 of an insurance deductible applicable to payment to the
584 contractor, or a person acting on behalf of a contractor, for
585 repairs to property covered by a property insurance policy. A
586 person who violates this paragraph commits a third degree
587 felony, punishable as provided in s. 775.082, s. 775.083, or s.
588 775.084.
589 Section 8. Except as otherwise expressly provided in this
590 act, this act shall take effect July 1, 2014.
