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ENROLLED
2026
Legislature
CS for CS for SB 1028, 1st Engrossed
20261028er
1
2 An act relating to the Citizens Property Insurance
3 Corporation; amending s. 627.351, F.S.; prohibiting
4 the corporation from issuing new coverage for
5 commercial residential and commercial nonresidential
6 risks under certain circumstances; providing an
7 exception; defining the term “total cost of insurance
8 coverage for the specific risk”; amending s. 627.3518,
9 F.S.; deleting an obsolete provision; defining terms;
10 revising the definition of the term “program”;
11 requiring the corporation to establish a personal
12 lines clearinghouse for specified purposes; requiring,
13 on or before a specified date, the corporation to
14 amend its plan of operation and implement a separate
15 commercial lines clearinghouse for a specified
16 purpose; requiring, on or before a specified date, the
17 corporation to implement a separate commercial lines
18 clearinghouse for specified purposes; requiring
19 certain risks to be eligible for submission to the
20 commercial lines clearinghouse for surplus lines
21 insurance under certain circumstances; deleting
22 obsolete provisions; revising the program’s rights and
23 responsibilities; revising the rights and
24 responsibilities the corporation has in establishing
25 the program; providing construction; requiring the
26 corporation to share risk exposure and policy
27 information with the commercial lines clearinghouse
28 administrator for the commercial lines clearinghouse
29 for surplus lines insurance; authorizing such
30 administrator to use such information for a specified
31 purpose; providing construction; requiring that
32 certain risk information be aggregated and
33 deidentified; authorizing authorized insurers to
34 participate in the personal lines clearinghouse or the
35 commercial lines clearinghouse for authorized
36 insurers; authorizing surplus lines clearinghouse
37 insurers to participate in the commercial lines
38 clearinghouse for surplus lines insurance; prohibiting
39 such insurers from participating in the personal lines
40 clearinghouse or the commercial lines clearinghouse
41 for authorized insurance; specifying that
42 participation in the program is not mandatory for such
43 insurers; revising prohibitions and requirements for
44 insurers making offers of coverage to new applicants
45 or renewal policyholders through the program;
46 providing construction; defining the term “effective
47 commission percentage”; specifying that applicants for
48 new or renewal commercial lines nonresidential
49 coverage from the corporation are not eligible for
50 coverage from the corporation under certain
51 circumstances; specifying that applicants for new
52 commercial lines residential coverage are not eligible
53 for coverage from the corporation under certain
54 circumstances; specifying the circumstances under
55 which policyholders of the corporation are not
56 eligible for new commercial lines residential coverage
57 from the corporation; requiring that the determination
58 of whether an offer of comparable coverage from an
59 authorized insurer is at or below the eligibility
60 threshold be made at a specified time; authorizing
61 applicants or insureds to elect to accept coverage
62 with authorized insurers or elect to accept or
63 continue coverage with the corporation under certain
64 circumstances; authorizing insureds to elect to accept
65 coverage with specified insurers or elect to accept or
66 continue coverage with the corporation under certain
67 circumstances; providing applicability; specifying
68 that certain applicants and policyholders become
69 ineligible for coverage from the corporation under
70 certain circumstances; authorizing applicants or
71 policyholders to elect to accept certain coverage
72 under certain circumstances; providing applicability;
73 revising the rights and authorizations for certain
74 independent insurance agents; providing applicability;
75 requiring the commercial lines clearinghouse
76 administrator for the commercial lines clearinghouse
77 for surplus lines insurance to give the first-named
78 insured a specified notice within a specified
79 timeframe under certain circumstances; deleting a
80 prohibition relating to commercial nonresidential
81 policies; requiring the office to review and approve
82 the program through final order; requiring the office
83 to specifically approve certain items; prohibiting the
84 corporation from applying discretionary rate
85 adjustments to certain risks; providing construction;
86 requiring the corporation and each commercial lines
87 clearinghouse administrator to implement certain
88 procedures; providing a directive to the Division of
89 Law Revision; providing an effective date.
90
91 Be It Enacted by the Legislature of the State of Florida:
92
93 Section 1. Paragraph (oo) is added to subsection (6) of
94 section 627.351, Florida Statutes, to read:
95 627.351 Insurance risk apportionment plans.—
96 (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
97
(oo)
For commercial residential and commercial
98
nonresidential risks submitted through the commercial lines
99
clearinghouse pursuant to s. 627.3518, if an approved surplus
100
lines clearinghouse insurer offers comparable coverage as
101
defined in s. 627.3518(1) and the total cost of
insurance
102
coverage
for the specific risk
is not more than
15
percent
103
greater than the corporation’s total cost of insurance coverage
104
for the specific risk, the corporation may not issue
new
105
coverage unless
otherwise provided in s. 627.3518(10).
For
106
purposes of this paragraph,
the term
“total cost of
insurance
107
coverage
for the specific risk
”
means the aggregate annual
108
premium,
plus all
fees,
taxes,
assessments, surcharges, and
any
109
other mandatory charges that a policyholder must pay to maintain
110
coverage for the entirety of the proposed policy period.
111 Section 2. Section 627.3518, Florida Statutes, is amended
112 to read:
113 627.3518 Citizens Property Insurance Corporation
114 policyholder eligibility clearinghouse program.—The purpose of
115 this section is to provide a framework for the corporation to
116 implement a clearinghouse program
by January 1, 2014
.
117 (1) As used in this section, the term:
118 (a)
“Applicable program standards” means the insurer
119
participation eligibility criteria, contractual requirements,
120
and account clearance requirements the commercial lines
121
clearinghouse administrator and the corporation deem necessary
122
to ensure an orderly process for offers of comparable coverage
123
to be provided by approved surplus lines clearinghouse insurers
.
124
(b)
“
Approved surplus lines clearinghouse insurer” means an
125
eligible surplus lines insurer
pursuant to s. 626.918
which has
126
a financial strength rating of “A-” or higher and a financial
127
size category of A-VII or higher from A.M. Best Company which
128
the clearinghouse administrator recommends for participation in
129
the program
and
which
the office verifies
meets
the
applicable
130
program standards
for participation in the program
within
30
131
business days
after
the commercial lines clearinghouse
132
administrator’s recommendation
.
If the office does not complete
133
such verification within the
3
0-business-day period, the insurer
134
is
deemed verified for purposes of participation in the program.
135
(c)
“Authorized insurer” means an insurer authorized to act
136
as an insurer by a subsisting certificate of authority issued to
137
the insurer by the office.
138
(d)
“Commercial lines clearinghouse administrator” means an
139
individual or entity employed
or otherwise contract
ed
by the
140
corporation to provide
administrative or professional services
141
to
implement
the commercial lines clearinghouse for authorized
142
insurance or the commercial lines clearinghouse for surplus
143
lines insurance within the corporation as set forth in paragraph
144
(3)(b)
.
145
(e) “Commercial lines clearinghouse for authorized
146
insurance” means the clearinghouse program established under
147
subparagraph (2)(b)2.
148
(f) “Commercial lines clearinghouse for surplus lines
149
insurance” means the clearinghouse program established under
150
subparagraph (2)(b)1.
151
(
g
) “Comparable coverage” means
,
for purposes of the
152
commercial lines clearinghouse for authorized insurance and the
153
commercial lines clearinghouse for surplus lines insurance,
154
coverage that
is
equivalent to or better than coverage from the
155
corporation as to all aspects of such coverage, as determined by
156
the corporation through the clearinghouse process and applicable
157
program standards.
Administrative, procedural, and other such
158
terms and conditions may not be considered when assessing
159
comparable coverage.
160
(h)
“Corporation” means
the
Citizens Property Insurance
161 Corporation.
162
(i)
(b)
“Exclusive agent” means any licensed insurance agent
163 that has, by contract, agreed to act exclusively for one company
164 or group of affiliated insurance companies and is disallowed by
165 the provisions of that contract to directly write for any other
166 unaffiliated insurer absent express consent from the company or
167 group of affiliated insurance companies.
168
(j)
(c)
“Independent agent” means any licensed insurance
169 agent not described in paragraph
(i)
(b)
.
170
(k)
“Personal lines clearinghouse” means the clearinghouse
171
program established under paragraph (2)(a).
172
(l)
“Primary residence” has the same meaning as in
s.
173
627.351(6)(c)2.a.
174
(m)
(d)
“Program” means the
clearinghouses
clearinghouse
175 created under this section
, consisting of the personal lines
176
clearinghouse, the commercial lines clearinghouse for authorized
177
insurance, and the commercial lines clearinghouse for surplus
178
lines insurance
.
179
(n)
“Surplus lines agent” means an insurance agent licensed
180
pursuant to s. 626.927 or s. 626.9272.
181
(o) “Total cost of the coverage for the specific risk”
182
means the aggregate annual premium, plus all fees, taxes,
183
assessments, surcharges, and any other mandatory charges that a
184
policyholder must pay to maintain coverage over the entirety of
185
the proposed policy period.
186 (2)
(a)
The corporation shall establish a personal lines
187
clearinghouse
in order
to confirm
an applicant’s
eligibility
188 with the corporation
,
and
to enhance access of new applicants
189 for
personal lines
coverage and existing
personal lines
190 policyholders of the corporation to offers of coverage from
191 authorized insurers,
and
the corporation shall establish a
192
program for personal residential
risks in order
to facilitate
193 the diversion of ineligible applicants and existing
194 policyholders from the corporation into the voluntary insurance
195 market.
196
(b)1.
To facilitate the diversion of applicants and
197
existing policyholders from the corporation to approved surplus
198
lines clearinghouse insurers, the corporation
shall amend its
199
plan of operation and implement on or before January 1, 2027, a
200
separate commercial lines clearinghouse pursuant to this
201
subparagraph in order to enhance access to offers of coverage
202
from approved surplus lines clearinghouse insurers for new
203
applicants for commercial residential coverage and commercial
204
nonresidential coverage and existing commercial residential and
205
commercial nonresidential policyholders of the corporation.
206
2.
To facilitate the diversion of ineligible applicants and
207
existing policyholders from the corporation to authorized
208
insurers, the corporation shall implement, on or before January
209
1, 2027, a
separate
commercial lines clearinghouse
pursuant to
210
this subparagraph
to confirm eligibility for coverage from the
211
corporation and to enhance access to offers of coverage from
212
authorized insurers for new applicants for commercial
213
residential and commercial nonresidential coverage and existing
214
commercial residential and commercial nonresidential
215
policyholders of the corporation
. If no offer of comparable
216
coverage from an authorized insurer through the program at a
217
premium that is at or below the eligibility threshold is made
218
through the commercial lines clearinghouse for authorized
219
insurance pursuant to this subparagraph within 5 days after
220
receipt of a submission, the risk shall be eligible for
221
submission to the commercial lines clearinghouse for surplus
222
lines insurance
The corporation
shall also develop
appropriate
223
procedures
for
facilitating the diversion of ineligible
224
applicants and existing policyholders
for c
ommercial residential
225
coverage
into the private insurance market and shall report such
226
procedures to the President of the Senate and the Speaker of the
227
House of Representatives by January 1, 2014
.
228 (3) The corporation board shall establish the
clearinghouse
229 program as an organizational unit within the corporation. The
230 program shall have all the rights and responsibilities in
231 carrying out its duties as a licensed general lines agent
and a
232
surplus lines agent and may
, but
is not
may not be
required to
,
233 employ or engage a licensed general lines agent
or a surplus
234
lines agent,
or to maintain an insurance agency license to carry
235 out its activities in the solicitation and placement of
236 insurance coverage. In establishing the program, the corporation
237
has all of the following rights and responsibilities
may
:
238 (a)
Before binding or renewing coverage by the corporation,
239
the corporation:
240
1.
Shall
require all new applications
for personal lines
241
coverage
, and all
personal lines
policies due for renewal, to be
242 submitted for coverage to the program in order to facilitate
243 obtaining an offer of coverage from an authorized insurer
.
244
2.
Must
,
when
the corporation establishes a
commercial
245
lines
clearinghouse
for authorized insurance
, require all new
246
applications for commercial lines coverage, and all commercial
247
lines policies due for renewal, to be
initially
submitted for
248
coverage to the
commercial lines clearinghouse for authorized
249
insurance
in order to facilitate obtaining an offer of coverage
250
from an authorized insurer.
T
he commercial lines clearinghouse
251
for authorized insurance
shall serve as the single
initial
point
252
of intake in order to facilitate obtaining an offer of coverage
253
from an authorized insurer.
254
3.
Must
,
when
the corporation establishes a
commercial
255
lines
clearinghouse
for surplus lines insurance
, require all new
256
applications for commercial lines coverage, and all commercial
257
lines policies due for renewal,
following the completion of the
258
process described in subparagraph 2.,
to be submitted for
259
coverage to the
commercial lines clearinghouse for surplus lines
260
insurance
in order to facilitate obtaining an offer of coverage
261
from an approved surplus lines clearinghouse insurer.
T
he
262
commercial lines clearinghouse
for surplus lines insurance
shall
263
serve as the single point of intake for the commercial lines
264
clearinghouse in order to facilitate obtaining an offer of
265
coverage from an approved surplus lines clearinghouse insurer
266
before the corporation may quote, bind, or otherwise indicate or
267
offer coverage. This paragraph may not prevent an insured from
268
submitting at any time an application to the commercial lines
269
clearinghouse for surplus lines insurance seeking noncomparable
270
coverage from approved surplus lines clearinghouse insurers as
271
authorized by paragraph (5)(f)
before binding or renewing
272
coverage by the corporation
.
273 (b)
Shall establish and maintain the operational systems
274
and procedures necessary to
implement
the program.
275
(
c)
Shall
employ or otherwise contract with individuals or
276 other entities for appropriate administrative or professional
277 services to effectuate the plan within the corporation in
278 accordance with the applicable purchasing requirements under s.
279 627.351
and, for purposes of implementing the commercial lines
280
clearinghouse for surplus lines insurance for providing offers
281
of coverage from approved surplus lines clearinghouse insurers
282
on or before January 1, 2027, may contract with such individuals
283
or entities in accordance with s. 287.057
.
284
(d)
(c)
May
enter into contracts with any authorized insurer
285
and any approved surplus lines clearinghouse insurer
to
286 participate in the program and accept an appointment by such
287 insurer.
288
(e)
(d)
May
provide funds to operate the
personal lines
289
clearinghouse and the commercial lines clearinghouse for
290
authorized insurance
program
. Insurers and agents participating
291 in the
personal lines clearinghouse or the commercial lines
292
clearinghouse for authorized insurance
program
are not required
293 to pay a fee to offset or partially offset the cost of the
294 program or use the program for renewal of policies initially
295 written through the clearinghouse.
296
(f)
Shall
separately operate and fund pursuant to paragraph
297
(h) t
he commercial lines clearinghouse
for surplus lines
298
insurance
and
shall separately operate and fund pursuant to
299
paragraph (e)
the commercial lines clearinghouse
for authorized
300
insurance
.
301
(
g
)
Must, if
there is insufficient commercial support for
302
any commercial lines clearinghouse, be relieved of its
303
obligations with respect to that
commercial lines clearinghouse
304
until such time there
is sufficient commercial support.
305
(
h
)
Shall
provide or permit access to shared or hosted
306
technology, systems, interfaces, or applications programming
307
interfaces to the c
ommercial lines clearinghouse administrator
,
308
provided that each retains operational control over and
309
responsibility for its own technology, systems, interfaces, or
310
applications.
Notwithstanding
paragraph (e)
, the corporation
may
311
not provide funds to support or offset the infrastructure or
312
operations of the commercial lines clearinghouse
for surplus
313
lines insurance
or any component thereof, but shall fund
and
314
operate its own technology, systems, interfaces, or applications
315
as necessary for the corporation to access and interface with
316
the commercial lines clearinghouse
for surplus lines insurance
.
317
(i)
(e)
May
develop an enhanced application that includes
318 information to assist private insurers in determining whether to
319 make an offer of coverage through the program.
320
(j)
(f)
For personal lines residential risks,
may
require
321
that
, before approving all new applications for coverage by the
322 corporation,
that
every application be subject to a period of 2
323 business days when any insurer participating in the
personal
324
lines clearinghouse
program
may select the application for
325 coverage.
For commercial lines
residential and commercial lines
326
nonresidential
risks, the corporation must require, before
327
approving all new applications for
commercial lines coverage
by
328
the corporation, that every application be subject to an initial
329
period of 5 business days when any authorized insurer
330
participating in the commercial lines clearinghouse for
331
authorized insurance may select the application for coverage.
332 The
authorized
insurer may issue a binder on any policy selected
333 for coverage for a period of at least 30 days but not more than
334 60 days.
335
(
k
)
Shall, in creating the commercial lines clearinghouse
336
for authorized insurance and the commercial lines clearinghouse
337
for surplus lines insurance
, establish criteria to determine the
338
capabilities necessary for the commercial lines clearinghouse
339
administrator
s
. For facilitating offers of surplus lines
340
coverage, such criteria must include confirmed expertise in the
341
surplus lines market, at least 5 years of publicly available
342
audited financial statements, the ability to facilitate all
343
approved surplus lines clearinghouse insurers to participate in
344
the commercial lines clearinghouse
for surplus lines insurance,
345
and other criteria that the corporation determines necessary to
346
effectively
and timely
establish
and
administer
the commercial
347
lines clearinghouse for surplus lines insurance
,
manage offers
348
of surplus lines coverage through the commercial lines
349
clearinghouse
for surplus lines insurance,
and the ability to
350
collect and remit, either directly or through a surplus lines
351
agent, all taxes pursuant to s. 626.932 and service fees
352
pursuant to s.
626.9325.
353
(l)
Shall select a commercial lines clearinghouse
354
administrator for the
commercial lines
clearinghouse
for
355
authorized insurance
and a separate commercial lines
356
clearinghouse administrator for the
commercial lines
357
clearinghouse
for surplus lines insurance
within 90 days after
358
the effective date of this act.
359
(
m
)
Shall
allow the commercial lines clearinghouse
360
administrator
s
to establish
applicable program standards and
361
procedures to ensure an orderly process for offers of coverage
362
to be provided by
authorized insurers or
approved surplus lines
363
clearinghouse insurers
, including engagement of or with surplus
364
lines agents
or
managing general agents or managing general
365
underwriters pursuant to paragraph
(5)
(
h
),
participating in the
366
commercial lines clearinghouse
for surplus lines insurance
.
367
(
n
)
Shall
submit to the commercial lines clearinghouse
368
administrator
for the commercial lines clearinghouse for surplus
369
lines insurance
its coverage terms and conditions, deductible
370
structures
,
total cost of insurance coverage for the specific
371
risk,
the currently approved rate applicable to the risk, and
372
the premium that would be charged after application of s.
373
627.351(6)(n)5. T
he commercial lines clearinghouse administrator
374
shall
disclose
the
total cost of insurance coverage to
375
participating approved surplus lines clearinghouse insurers
376
following the commercial lines clearinghouse administrator’s
377
receipt of a comparable coverage offer from such participating
378
approved surplus lines clearinghouse insurer.
Any change to the
379
corporation’s coverage terms and conditions, deductible
380
structures,
rating classification, total cost of insurance
381
coverage for the specific risk, or rating factor
constitutes a
382
new submission
and restarts the validation period
.
The
383
commercial lines clearinghouse administrator for the commercial
384
lines clearinghouse for surplus lines insurance shall enter into
385
agreements with approved surplus lines clearinghouse insurers
386
participating in the commercial lines clearinghouse for surplus
387
lines insurance.
388 (4)
The corporation
shall
share risk exposure and policy
389
information with the commercial lines clearinghouse
390
administrator
for the commercial lines clearinghouse for surplus
391
lines insurance
and, through the commercial lines clearinghouse
392
for surplus lines insurance
, the commercial lines clearinghouse
393
administrator
for the commercial lines clearinghouse for surplus
394
lines insurance
may u
se
such information as necessary to operate
395
and administer the commercial lines clearinghouse
for surplus
396
lines insurance
and ensure the orderly, timely
,
and transparent
397
assessment of risks by
approved surplus lines
clearinghouse
398
insurers participating in the commercial lines clearinghouse
for
399
surplus lines insurance
.
T
his
sub
section
does not
prohibit a
400
commercial lines clearinghouse administrator from sharing risk
401
information with approved surplus lines clearinghouse insurers
402
for underwriting evaluation. Any risk information shared for
403
purposes of this
sub
section, other than a submission of coverage
404
for a specific risk, must be aggregated and deidentified.
405
(5)
Any authorized insurer may participate in the
personal
406
lines clearinghouse or the commercial lines clearinghouse for
407
authorized insurance
program
; however, participation is not
408 mandatory for any insurer.
Approved surplus lines clearinghouse
409
insurers may participate in the commercial lines clearinghouse
410
for surplus lines insurance but may not participate in the
411
personal lines clearinghouse or the commercial lines
412
clearinghouse for authorized insurance; however, participation
413
is not mandatory for any surplus lines insurer.
Insurers making
414 offers of coverage to new applicants or renewal policyholders
415 through the program:
416 (a) May not be required to individually appoint any agent
417 whose customer is underwritten and bound through the program.
418 Notwithstanding s. 626.112, insurers are not required to appoint
419 any agent on a policy underwritten through the program for as
420 long as that policy remains with the insurer. Insurers may, at
421 their election, appoint any agent
or surplus lines agent
whose
422
direct or indirect
customer is initially underwritten and bound
423 through the program. In the event an insurer accepts a policy
424 from an agent who is not appointed pursuant to this paragraph,
425 and thereafter elects to accept a policy from such agent, the
426 provisions of s. 626.112 requiring appointment apply to the
427 agent.
428 (b) Must enter into a limited agency agreement with each
429 agent
or surplus lines agent
that is not appointed in accordance
430 with paragraph (a) and whose
direct or indirect
customer is
431 underwritten and bound through the program.
In addition, a
432
surplus lines agent that enters into a limited agency or broker
433
agreement with an approved surplus lines clearinghouse insurer
434
making an offer of coverage through the program must also enter
435
into a limited agency or broker agreement with each producing
436
agent whose customer is underwritten and bound through the
437
program.
438 (c) Must enter into its standard agency agreement with each
439 agent
or surplus lines agent
whose
direct or indirect
customer
440 is underwritten and bound through the program when that agent
or
441
surplus lines agent
has been appointed by the insurer pursuant
442 to s. 626.112.
In addition, a surplus lines agent that enters
443
into
a standard
agency or broker agreement with an approved
444
surplus lines clearinghouse insurer making an offer of coverage
445
through the program must also enter into a limited agency or
446
broker agreement with each producing agent whose customer is
447
underwritten and bound through the program.
448 (d) Must comply with s. 627.4133(2).
449 (e) May participate through their
designated
single
450
designated
managing general agent
, managing general underwriter,
451
or
broker
,
o
r surplus lines agent
; however, the provisions of
452 paragraph
(7)(a)
(6)(a)
regarding ownership, control, and use of
453 the expirations continue to apply.
454
(f) May make offers of coverage through the commercial
455
lines clearinghouse
for surplus lines insurance
other than
456
comparable coverage, as long as such noncomparable offers of
457
coverage are clearly designated as noncomparable. Such
458
noncomparable offers of coverage
are outside of the program and
459
not subject to s. 627.351(6)(oo).
460
(g)
(f)
For authorized insurers,
must pay to the producing
461 agent a commission equal to that paid by the corporation or the
462 usual and customary commission paid by the insurer for that line
463 of business, whichever is greater.
464
(h)
For approved surplus lines clearinghouse insurers, when
465
coverage is placed through the commercial lines clearinghouse
466
for surplus lines insurance,
directly or through a managing
467
general agent or managing general underwriter
, must pay a total
468
commission or equivalent compensation on gross written premium,
469
exclusive of fees, surcharges, and taxes, to the surplus lines
470
agent placing the risk. The surplus lines agent must pay the
471
producing agent a
commission that results in an effective
472
commission percentage at least equal to the commission
473
percentage published by the corporation and in effect on January
474
1, 2026, calculated in the same manner and on the same basis
475
used by the corporation, and shall retain the remainder of the
476
total commission or equivalent compensation. This paragraph does
477
not prohibit an agent from voluntarily accepting a lower
478
commission at the agent’s sole discretion. As used in this
479
paragraph, the term “effective commission percentage” means the
480
commission expressed as a percentage of premium, exclusive of
481
all fees, assessments, surcharges, and taxes.
482
(6)(a)
(5)
Notwithstanding s. 627.3517, any applicant for
483 new
personal lines
coverage from the corporation is not eligible
484 for coverage from the corporation if provided an offer of
485 coverage from an authorized insurer through the program at a
486 premium that is at or below the eligibility threshold for
487 applicants for new coverage of a primary residence established
488 in s. 627.351(6)(c)5.a., or for applicants for new coverage of a
489 risk that is not a primary residence established in s.
490 627.351(6)(c)5.b. Whenever an offer of coverage for a personal
491 lines risk is received for a policyholder of the corporation at
492 renewal from an authorized insurer through the program which is
493 at or below the eligibility threshold for primary residences of
494 policyholders of the corporation established in s.
495 627.351(6)(c)5.a., or the eligibility threshold for risks that
496 are not primary residences of policyholders of the corporation
497 established in s. 627.351(6)(c)5.b., the risk is not eligible
498 for coverage with the corporation. In the event an offer of
499 coverage for a new applicant is received from an authorized
500 insurer through the program, and the premium offered exceeds the
501 eligibility threshold for applicants for new coverage of a
502 primary residence established in s. 627.351(6)(c)5.a., or the
503 eligibility threshold for applicants for new coverage on a risk
504 that is not a primary residence established in s.
505 627.351(6)(c)5.b., the applicant or insured may elect to accept
506 such coverage, or may elect to accept or continue coverage with
507 the corporation. In the event an offer of coverage for a
508 personal lines risk is received from an authorized insurer at
509 renewal through the program, and the premium offered exceeds the
510 eligibility threshold for primary residences of policyholders of
511 the corporation established in s. 627.351(6)(c)5.a., or exceeds
512 the eligibility threshold for risks that are not primary
513 residences of policyholders of the corporation established in s.
514 627.351(6)(c)5.b., the insured may elect to accept such
515 coverage, or may elect to accept or continue coverage with the
516 corporation. Section 627.351(6)(c)5.a.(I) and b.(I) does not
517 apply to an offer of coverage from an authorized insurer
518 obtained through the program.
As used in this subsection, the
519
term “primary residence” has the same meaning as in s.
520
627.351(6)(c)2.a.
521
(b)
Any applicant for new or renewal commercial lines
522
nonresidential coverage from the corporation is not eligible for
523
coverage from the corporation if provided an offer of comparable
524
coverage from an authorized insurer through the program. Any
525
applicant for new commercial lines residential
coverage from the
526
corporation is not eligible for coverage from the corporation if
527
provided an offer of comparable coverage from an authorized
528
insurer through the program at a premium that is at or below the
529
eligibility threshold for applicants for new coverage
530
established in s. 627.351(6)(c)5.c. The determination of whether
531
an offer of comparable coverage from an authorized insurer
532
through the program is at or below the eligibility threshold
533
must be made before the submission of the corporation’s coverage
534
terms and conditions, deductible structures, and unalterable
535
indicated total cost of insurance
for the specific risk
is
536
provided to the commercial lines clearinghouse administrator.
537
Whenever an offer of comparable coverage for a commercial lines
538
residential risk is received for a policyholder of the
539
corporation at renewal from an authorized insurer through the
540
program which is at or below the eligibility threshold in s.
541
627.351(6)(c)5.c., the risk is not eligible for coverage from
542
the corporation. In the event that an offer of coverage for a
543
new applicant is received from an authorized insurer through the
544
program, and the premium offered exceeds the eligibility
545
threshold established in s. 627.351(6)(c)5.c., the applicant or
546
insured may elect to accept such coverage or may elect to accept
547
or continue coverage with the corporation. In the event that an
548
offer of coverage for a commercial lines residential risk is
549
received from an authorized insurer at renewal through the
550
program, and the premium offered exceeds the eligibility
551
threshold for policyholders of the corporation established in s.
552
627.351(6)(c)5.c., the insured may elect to accept such coverage
553
or may elect to accept or continue coverage with the
554
corporation. Section 627.351(6)(c)5.c.(I) does not apply to an
555
offer of coverage from an authorized insurer obtained through
556
the program.
557
(c)
A
ny applicant for new commercial lines residential
558
coverage or commercial lines nonresidential coverage from the
559
corporation and any policyholder of the corporation, when such
560
applicant or corporation policyholder is offered commercial
561
lines residential or commercial lines nonresidential coverage
562
pursuant to the program by an approved surplus lines
563
clearinghouse insurer,
becomes ineligible
for coverage from the
564
corporation
if an approved surplus lines clearinghouse insurer
565
offers comparable coverage and the total cost of insurance
566
coverage for the specific risk is not more than 15 percent
567
greater than the total cost of insurance coverage for the
568
specific risk from the corporation
.
In the event that an offer
569
of coverage for a new applicant or policyholder of the
570
corporation is received from an approved surplus lines
571
clearinghouse insurer through the program, and the total cost of
572
insurance coverage is more than 15 percent greater than the
573
total cost of insurance coverage for the specific risk from the
574
corporation, the applicant or policyholder of the corporation
575
may elect to accept such coverage or may elect to accept or
576
continue coverage with the corporation.
Section
577
627.351(6)(c)5.c.(I) does not apply to an offer of coverage from
578
an approved surplus lines clearinghouse insurer obtained through
579
the program.
580
(7)
(6)
Independent insurance agents submitting new
581 applications for coverage or that are the agent of record on a
582 renewal policy submitted to the program:
583 (a) Are granted and must maintain ownership and the
584 exclusive use of expirations, records, or other written or
585 electronic information directly related to such applications or
586 renewals written through the corporation or through an insurer
587 participating in the program, notwithstanding
s. 627.351(5)(a),
588 s. 627.351(6)(c)5.a.(I)(B) and (II)(B)
,
or s.
589 627.351(6)(c)5.b.(I)(B) and (II)(B). Such ownership is granted
590 for as long as the insured remains with the agency or until sold
591 or surrendered in writing by the agent. Contracts with the
592 corporation or required by the corporation
or with any insurer
593
or surplus lines agent may
must
not amend, modify, interfere
594 with, or limit such rights of ownership. Such expirations,
595 records, or other written or electronic information may be used
596 to review an application, issue a policy, or for any other
597 purpose necessary for placing such business through the program.
598 (b) May not be required to be appointed by any insurer
599 participating in the program for policies written solely through
600 the program, notwithstanding the provisions of s. 626.112.
601 (c) May accept an appointment from any insurer
602 participating in the program.
603 (d) May enter into either a standard or limited agency
604 agreement with the insurer, at the insurer’s option
, and may
605
enter into agreements with a surplus lines agent
.
606
607 Applicants ineligible for coverage in accordance with subsection
608
(6)
(5)
remain ineligible if their independent agent is
609 unwilling or unable to enter into a standard or limited agency
610 agreement with an insurer participating in the program.
611
(8)
(7)
Exclusive agents submitting new applications for
612 coverage or that are the agent of record on a renewal policy
613 submitted to the program:
614 (a) Must maintain ownership and the exclusive use of
615 expirations, records, or other written or electronic information
616 directly related to such applications or renewals written
617 through the corporation or through an insurer participating in
618 the program, notwithstanding s. 627.351(6)(c)5.a.(I)(B) and
619 (II)(B) or s. 627.351(6)(c)5.b.(I)(B) and (II)(B). Contracts
620 with the corporation or required by the corporation must not
621 amend, modify, interfere with, or limit such rights of
622 ownership. Such expirations, records, or other written or
623 electronic information may be used to review an application,
624 issue a policy, or for any other purpose necessary for placing
625 such business through the program.
626 (b) May not be required to be appointed by any insurer
627 participating in the program for policies written solely through
628 the program, notwithstanding the provisions of s. 626.112.
629 (c) Must only facilitate the placement of an offer of
630 coverage from an insurer whose limited servicing agreement is
631 approved by that exclusive agent’s exclusive insurer.
632 (d) May enter into a limited servicing agreement with the
633 insurer making an offer of coverage, and only after the
634 exclusive agent’s insurer has approved the limited servicing
635 agreement terms. The exclusive agent’s insurer must approve a
636 limited service agreement for the program for any insurer for
637 which it has approved a service agreement for other purposes.
638
639 Applicants ineligible for coverage in accordance with subsection
640
(6)
(5)
remain ineligible if their exclusive agent is unwilling
641 or unable to enter into a standard or limited agency agreement
642 with an insurer making an offer of coverage to that applicant.
643
(9)
(8)
Submission of an application for coverage by the
644 corporation to the program does not constitute the binding of
645 coverage by the corporation, and failure of the program to
646 obtain an offer of coverage by an insurer may not be considered
647 acceptance of coverage of the risk by the corporation.
648
(10)
(9)
The 45-day notice of nonrenewal requirement set
649 forth in s. 627.4133(2)(b)5. applies when a policy is nonrenewed
650 by the corporation because the risk has received an offer of
651 coverage
from an authorized insurer
pursuant to this section
652 which renders the risk ineligible for coverage by the
653 corporation.
Section 627.4133 does not apply when a policy is
654
nonrenewed by the corporation because the risk has received an
655
offer of coverage from an approved surplus lines clearinghouse
656
insurer pursuant to this section which renders the risk
657
ineligible for coverage by the corporation. Within 5 days
after
658
the date an approved surplus lines clearinghouse insurer makes
659
an offer of coverage pursuant to this section which renders the
660
risk ineligible for coverage by the corporation, the commercial
661
lines clearinghouse administrator for the commercial lines
662
clearinghouse for surplus lines insurance must, on behalf of the
663
corporation, give the first-named insured written notice of
664
nonrenewal stating the reason as to why the policy is not to be
665
renewed. If the commercial lines clearinghouse administrator for
666
the commercial lines clearinghouse for surplus lines insurance
667
fails to provide the notice as required by this paragraph,
668
paragraph (6)(c) does not apply to the risk.
669
(10) The program may not include commercial nonresidential
670
policies.
671 (11) Proprietary business information provided to the
672 corporation’s clearinghouse by insurers with respect to
673 identifying and selecting risks for an offer of coverage is
674 confidential and exempt from s. 119.07(1) and s. 24(a), Art. I
675 of the State Constitution.
676 (a) As used in this subsection, the term “proprietary
677 business information” means information, regardless of form or
678 characteristics, which is owned or controlled by an insurer and:
679 1. Is identified by the insurer as proprietary business
680 information and is intended to be and is treated by the insurer
681 as private in that the disclosure of the information would cause
682 harm to the insurer, an individual, or the company’s business
683 operations and has not been disclosed unless disclosed pursuant
684 to a statutory requirement, an order of a court or
685 administrative body, or a private agreement that provides that
686 the information will not be released to the public;
687 2. Is not otherwise readily ascertainable or publicly
688 available by proper means by other persons from another source
689 in the same configuration as provided to the clearinghouse; and
690 3. Includes:
691 a. Trade secrets, as defined in s. 688.002.
692 b. Information relating to competitive interests, the
693 disclosure of which would impair the competitive business of the
694 provider of the information.
695
696 Proprietary business information may be found in underwriting
697 criteria or instructions which are used to identify and select
698 risks through the program for an offer of coverage and are
699 shared with the clearinghouse to facilitate the shopping of
700 risks with the insurer.
701 (b) The clearinghouse may disclose confidential and exempt
702 proprietary business information:
703 1. If the insurer to which it pertains gives prior written
704 consent;
705 2. Pursuant to a court order; or
706 3. To another state agency in this or another state or to a
707 federal agency if the recipient agrees in writing to maintain
708 the confidential and exempt status of the document, material, or
709 other information and has verified in writing its legal
710 authority to maintain such confidentiality.
711
(12)
Within 3 months after the effective date of this act
712
and annually thereafter, unless waived by the office in its sole
713
discretion, the office shall review and approve the program
714
through a final order. At a minimum, the office must
715
specifically approve all of the following items
:
716
(a)
The applicable program standards.
717
(b)
Procedural rules, which shall provide for the efficient
718
operation of all clearinghouses and allow sufficient time for
719
participating surplus lines insurers to consider and quote
720
risks.
721
(c)
Any contractual agreement relating to the program
722
between any combination of the following: the corporation, any
723
commercial lines clearinghouse administrator, or any approved
724
surplus lines clearinghouse insurer.
725
(d)
The operational processes used by
any
commercial lines
726
clearinghouse administrator to determine
comparable coverage or
727
whether an offer of coverage from an insurer participating in
728
the program precludes coverage from the corporation
.
729
(e) Applicable controls relating to data and proprietary
730
business information used in the program which do not otherwise
731
conflict with this statute
.
732
733
Changes to the items described in this subsection must be
734
approved in writing by the office.
735
(13)
The corporation may not apply discretionary rate
736
adjustments to specific risks submitted to the commercial lines
737
clearinghouse for surplus lines insurance.
738
(14) This section does not authorize rebates or any
739
activity that would violate part IX of chapter 626. The
740
corporation and each commercial lines clearinghouse
741
administrator shall implement procedures to ensure that
742
participating agents and insurers are not induced to violate
743
p
art IX of chapter 626.
744 Section 3.
The Division of Law Revision is directed to
745
replace the phrase “
the effective date of this
act” wherever it
746
occurs in this
act with
the date this
act becomes a
law.
747 Section 4. This act shall take effect upon becoming a law.