H 943

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    CS/CS/HB 943  2026
1A bill to be entitled
2An act relating to the Citizens Property Insurance
3Corporation; amending s. 627.351, F.S.; prohibiting
4the corporation from issuing or renewing coverage for
5commercial residential and commercial nonresidential
6risks under certain circumstances; prohibiting the
7corporation from imposing an equalization adjustment
8under certain circumstances; providing applicability;
9providing the components of the total cost of
10insurance coverage; providing that the corporation is
11not relieved from an obligation to impose an
12equalization adjustment under certain circumstances;
13providing that certain adjustments expire at a
14specified time; defining the term "equalization
15adjustment"; amending s. 627.3518, F.S.; deleting an
16obsolete date; providing definitions; revising the
17definition of the term "program"; requiring the
18corporation to establish a personal lines
19clearinghouse for specified purposes; requiring, on or
20before a specified date, the corporation to amend its
21plan of operation and implement a commercial lines
22clearinghouse for a specified purpose; requiring, on
23or before a specified date, the corporation to
24implement a separate commercial lines clearinghouse
25for specified purposes; deleting obsolete provisions;
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26revising the program's rights and responsibilities;
27revising the rights and responsibilities the
28corporation has in establishing the program;
29authorizing a commercial lines clearinghouse
30administrator to charge certain fees; authorizing the
31corporation to share risk exposure and policy
32information with the commercial lines clearinghouse
33administrator; authorizing such administrator to use
34such information for a specified purpose; authorizing
35approved surplus lines clearinghouse insurers to
36participate in the commercial lines clearinghouse;
37prohibiting such insurers from participating in the
38personal lines clearinghouse; specifying that
39participation in the program is not mandatory for such
40insurers; revising prohibitions and requirements for
41insurers making offers of coverage to new applicants
42or renewal policyholders through the program;
43providing construction; defining the term "effective
44commission percentage"; specifying that applicants for
45new commercial lines residential coverage are not
46eligible for coverage from the corporation under
47certain circumstances; specifying the circumstances
48under which policyholders of the corporation are not
49eligible for new commercial lines residential coverage
50from the corporation; requiring that the determination
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51of whether an offer of comparable coverage from an
52authorized insurer is at or below the eligibility
53threshold be made at a specified time; authorizing
54applicants or insureds to elect to accept coverage
55with authorized insurers or elect to accept or
56continue coverage with the corporation under certain
57circumstances; authorizing insureds to elect to accept
58coverage with specified insurers or elect to accept or
59continue coverage with the corporation under certain
60circumstances; providing applicability; specifying
61that certain applicants and policyholders remain
62eligible for coverage from the corporation;
63authorizing such applicants and policyholders to elect
64to accept coverage from clearinghouse insurers or
65elect to accept or continue coverage with the
66corporation; authorizing certain applicants and
67policyholders of the corporation to elect to accept
68coverage from clearinghouse insurers or elect to
69accept or continue coverage with the corporation;
70requiring such applicants or policyholders to pay a
71specified total cost of insurance for corporation
72coverage; providing applicability; revising the rights
73and authorizations for certain independent insurance
74agents; deleting a prohibition relating to commercial
75nonresidential policies; authorizing the Office of
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76Insurance Regulation to review certain operational
77processes related to the program; specifying the
78contents of such review; requiring the office to
79notify the corporation and submit written
80recommendations to the Financial Services Commission
81under certain circumstances; authorizing the
82corporation to temporarily implement certain
83recommendations; providing construction; requiring the
84corporation and the commercial lines clearinghouse
85administrator to implement specified procedures;
86authorizing the office to review such procedures;
87providing an effective date.
88
89     Be It Enacted by the Legislature of the State of Florida:
90
91Section 1.  Paragraph (oo) is added to subsection (6) of
92     section 627.351, Florida Statutes, to read:
93627.351        Insurance risk apportionment plans.—
94(6)     CITIZENS PROPERTY INSURANCE CORPORATION.—
95(oo)        For commercial residential and commercial
96     nonresidential risks, if an approved surplus lines clearinghouse
97     insurer offers coverage under s. 627.3518(6)(c)2. and the total
98     cost of such coverage is not more than 20 percent greater than
99     the total cost of insurance coverage from the corporation, the
100    corporation may not issue or renew coverage unless it imposes an
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101    equalization adjustment on such policy equal to the amount by
102    which the total cost of insurance coverage offered by the
103    approved surplus lines clearinghouse insurer exceeds the total
104    cost of insurance coverage from the corporation. If the total
105    cost of insurance from the approved surplus lines clearinghouse
106    insurer does not exceed the total cost of corporation coverage,
107    the corporation may not impose the equalization adjustment. If
108    more than one approved surplus lines clearinghouse insurer
109    offers coverage under s. 627.3518(6)(c)2., the lowest offered
110    total cost of insurance coverage applies for purposes of this
111    paragraph. The total cost of insurance coverage includes, but is
112    not limited to, the premium, fees, surcharges, and applicable
113    taxes. An offer submitted by a surplus lines clearinghouse
114    insurer which is declined by the applicant or policyholder,
115    expires, or is not accepted by the applicant or policyholder for
116    any reason does not relieve the corporation from its obligation,
117    if any, to impose an equalization adjustment as set forth in
118    this paragraph. An equalization adjustment applied pursuant to
119    this paragraph expires at the end of the policy term. For the
120    purposes of this paragraph, the term "equalization adjustment"
121    means a temporary policy-term-only adjustment applied solely for
122    purposes of evaluating and comparing offers of coverage on a
123    comparable basis under this section. An equalization adjustment
124    does not constitute a rate, premium, surcharge, or filing; does
125    not modify or affect any rate, rating plan, rule, or filing
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126    approved for the corporation; and expires by operation of law at
127    the end of the applicable policy term.
128Section 2.  Section 627.3518, Florida Statutes, is amended
129    to read:
130627.3518  Citizens Property Insurance Corporation
131    policyholder eligibility clearinghouse program.—The purpose of
132    this section is to provide a framework for the corporation to
133    implement a clearinghouse program by January 1, 2014.
134(1)     As used in this section, the term:
135(a)     "Approved surplus lines clearinghouse insurer" means
136    an eligible surplus lines insurer that has a financial strength
137    rating of "A-" or higher and a financial size category of A-VII
138    or higher from A.M. Best Company which the clearinghouse
139    administrator recommends for participation in the program and
140    which the office verifies meets the requirements for
141    participation in the program within 10 business days after the
142    commercial lines clearinghouse administrator's recommendation.
143    If the office does not complete such verification within the 10-
144    business-day period, the insurer shall be deemed verified for
145    purposes of participation in the program.
146(b)     "Authorized insurer" means an insurer authorized to
147    act as an insurer by a subsisting certificate of authority
148    issued to the insurer by the office.
149(c)     "Commercial lines clearinghouse administrator" means
150    the individual or entity employed or otherwise contracted by the
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151    corporation to provide administrative or professional services
152    to implement the commercial lines clearinghouse required
153    pursuant to subparagraph (2)(b)1. within the corporation as set
154    forth in paragraph (3)(b).
155(d)     "Comparable coverage" means coverage that has material
156    terms and conditions that are substantially equivalent to or
157    better than coverage from the corporation as to all aspects of
158    such coverage, as determined by the corporation through the
159    clearinghouse process and applicable program standards.
160(e)     "Corporation" means Citizens Property Insurance
161    Corporation.
162(f)(b)       "Exclusive agent" means any licensed insurance
163    agent that has, by contract, agreed to act exclusively for one
164    company or group of affiliated insurance companies and is
165    disallowed by the provisions of that contract to directly write
166    for any other unaffiliated insurer absent express consent from
167    the company or group of affiliated insurance companies.
168(g)(c)       "Independent agent" means any licensed insurance
169    agent not described in paragraph (f) (b).
170(h)     "Primary residence" has the same meaning as in s.
171    627.351(6)(c)2.a.
172(i)(d)       "Program" means the clearinghouse created under
173    this section, consisting of the personal lines clearinghouse and
174    the commercial lines clearinghouse.
175(j)     "Surplus lines agent" means an insurance agent
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176    licensed pursuant to s. 626.927 or s. 626.9272.
177(2)(a)       The corporation shall establish a personal lines
178    clearinghouse in order to confirm an applicant's eligibility
179    with the corporation, and to enhance access of new applicants
180    for personal lines coverage and existing personal lines
181    policyholders of the corporation to offers of coverage from
182    authorized insurers, and the corporation shall establish a
183    program for personal residential risks in order to facilitate
184    the diversion of ineligible applicants and existing
185    policyholders from the corporation into the voluntary insurance
186    market.
187(b)1.       The corporation shall amend its plan of operation
188    and implement, on or before January 1, 2027, a commercial lines
189    clearinghouse in order to enhance access to offers of coverage
190    from approved surplus lines clearinghouse insurers for new
191    applicants for commercial residential coverage and commercial
192    nonresidential coverage and existing commercial residential and
193    commercial nonresidential policyholders of the corporation.
1942.      To facilitate the diversion of ineligible applicants
195    and existing policyholders from the corporation to authorized
196    insurers, the corporation shall implement, on or before January
197    1, 2027, a separate commercial lines clearinghouse to confirm
198    eligibility for coverage from the corporation and to enhance
199    access to offers of coverage from authorized insurers for new
200    applicants for commercial residential and commercial
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201    nonresidential coverage and existing commercial residential and
202    commercial nonresidential policyholders of the corporation shall
203    also develop appropriate procedures for facilitating the
204    diversion of ineligible applicants and existing policyholders
205    for commercial residential coverage into the private insurance
206    market and shall report such procedures to the President of the
207    Senate and the Speaker of the House of Representatives by
208    January 1, 2014.
209(3)      The corporation board shall establish the
210    clearinghouse program as an organizational unit within the
211    corporation. The program shall have all the rights and
212    responsibilities in carrying out its duties as a licensed
213    general lines agent and a surplus lines agent, but may not be
214    required to employ or engage a licensed general lines agent or a
215    surplus lines agent, or to maintain an insurance agency license
216    to carry out its activities in the solicitation and placement of
217    insurance coverage. In establishing the program, the corporation
218    has all of the following rights and responsibilities may:
219(a)     Before binding or renewing coverage by the
220    corporation:
2211.      May require all new applications for personal lines
222    coverage, and all personal lines policies due for renewal, to be
223    submitted for coverage to the program in order to facilitate
224    obtaining an offer of coverage from an authorized insurer.
2252.      May, if the corporation establishes a clearinghouse
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226    pursuant to subparagraph (2)b.2., require all new applications
227    for commercial lines coverage, and all commercial lines policies
228    due for renewal, to be submitted for coverage to the program in
229    order to facilitate obtaining an offer of coverage from an
230    authorized insurer.
2313.      Shall require all new applications for commercial lines
232    coverage, and all commercial lines policies due for renewal, to
233    be initially submitted for coverage through the commercial lines
234    clearinghouse as a single point of intake for both the
235    corporation and the program in order to facilitate obtaining an
236    offer of coverage from an approved surplus lines clearinghouse
237    insurer before binding or renewing coverage by the corporation.
238(b)     Shall establish and maintain the operational systems
239    and procedures necessary to implement the program.
240(c)      May employ or otherwise contract with individuals or
241    other entities for appropriate administrative or professional
242    services to effectuate the plan within the corporation in
243    accordance with the applicable purchasing requirements under s.
244    627.351 and, for purposes of implementing the commercial lines
245    clearinghouse and providing offers of coverage from approved
246    surplus lines clearinghouse insurers on or before January 1,
247    2027, contract with such individuals or entities in accordance
248    with s. 287.057.
249(d)(c)       May enter into contracts with any authorized
250    insurer and any approved surplus lines clearinghouse insurer to
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251    participate in the program and accept an appointment by such
252    insurer.
253(e)(d)       May provide funds to operate the program. Insurers
254    and agents participating in the program are not required to pay
255    a fee to offset or partially offset the cost of the program or
256    use the program for renewal of policies initially written
257    through the clearinghouse. Notwithstanding this paragraph, any
258    commercial lines clearinghouse administrator may charge approved
259    surplus lines clearinghouse insurers participating in the
260    program reasonable transaction, technology, administration, and
261    other similar fees. All fees charged by the commercial lines
262    clearinghouse administrator must be fair and reasonable.
263(f)     Shall include separate components for authorized
264    insurers and approved surplus lines insurers with respect to the
265    commercial lines clearinghouse, each of which shall be
266    independently operated and independently funded.
267(g)     In the event that there is insufficient commercial
268    support for any component of the commercial lines clearinghouse,
269    shall be relieved of its obligations with respect to that
270    component for which there is insufficient commercial support.
271(h)     Shall provide or permit access to shared or hosted
272    technology, systems, interfaces, or applications programming
273    interfaces to the commercial lines clearinghouse administrator,
274    provided that each retains operational control over and
275    responsibility for its own technology, systems, interfaces, or
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276    applications. Notwithstanding paragraph (e), the corporation may
277    not provide funds to support or offset the infrastructure or
278    operations of the commercial lines clearinghouse or any
279    component thereof, but shall fund and operate its own
280    technology, systems, interfaces, or applications as necessary
281    for the corporation to access and interface with the commercial
282    lines clearinghouse.
283(i)(e)       May develop an enhanced application that includes
284    information to assist private insurers in determining whether to
285    make an offer of coverage through the program.
286(j)(f)       For personal lines residential risks, may require
287    that, before approving all new applications for coverage by the
288    corporation, that every application be subject to a period of 2
289    business days when any insurer participating in the program may
290    select the application for coverage. For commercial lines
291    residential and commercial lines nonresidential risks, the
292    corporation may require, before approving all new applications
293    for commercial lines coverage by the corporation, that every
294    application be subject to a period of 5 business days when any
295    insurer participating in the program may select the application
296    for coverage. The insurer may issue a binder on any policy
297    selected for coverage for a period of at least 30 days but not
298    more than 60 days.
299(k)     Shall, in creating the commercial lines clearinghouse,
300    establish criteria to determine the capabilities necessary for
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301    the commercial lines clearinghouse administrator. For
302    facilitating offers of surplus lines coverage, such criteria
303    must include confirmed expertise in the surplus lines market; at
304    least 5 years of publicly available audited financial
305    statements; the ability to facilitate all approved surplus lines
306    clearinghouse insurers to participate in the commercial lines
307    clearinghouse; other criteria that the corporation determines
308    necessary to effectively establish, administer, manage offers of
309    surplus lines coverage through the commercial lines
310    clearinghouse; and the ability to collect and remit, either
311    directly or through a surplus lines agent, all taxes pursuant to
312    s. 626.932 and service fees pursuant to s. 626.9325.
313(l)     Shall select a commercial lines clearinghouse
314    administrator within 90 days after the effective date of this
315    act.
316(m)     May allow the commercial lines clearinghouse
317    administrator to establish procedures and account clearance
318    requirements the commercial lines clearinghouse administrator
319    deems necessary to ensure an orderly process for offers of
320    coverage to be provided by authorized insurers or approved
321    surplus lines clearinghouse insurers participating in the
322    commercial lines clearinghouse and to avoid multiple offers of
323    coverage from the same insurer for the same risk.
324(n)     Must submit to the commercial lines clearinghouse
325    administrator its coverage terms and conditions, deductible
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326    structures, and unalterable indicated total cost of insurance
327    coverage, which must include, but is not limited to, the
328    premium, fees, surcharges, and applicable taxes for the subject
329    risk before any approved surplus lines clearinghouse insurer is
330    provided a submission for coverage pursuant to the program by
331    any applicant for new coverage from the corporation or any
332    policyholder of the corporation. Upon completion of such
333    submission, the commercial lines clearinghouse administrator
334    shall provide the corporation's unalterable indicated coverage
335    terms and conditions and deductible structures, but may not
336    provide the indicated total cost of corporation insurance
337    coverage, to the approved surplus lines clearinghouse insurers
338    participating in the program. The commercial lines clearinghouse
339    administrator shall determine, through established procedures,
340    whether a submission is complete before release, which
341    submission requires, at a minimum, a validated application from
342    the agent and the corporation's unalterable indicated total cost
343    of insurance, coverage terms and conditions, and deductible
344    structures. The commercial lines clearinghouse administrator
345    shall then use the corporation's unalterable indication to
346    determine whether any offers of coverage from approved surplus
347    lines clearinghouse insurers satisfy the requirements set forth
348    in s. 627.351(6)(oo) and subparagraph (6)(c)2. The corporation
349    may not bind or otherwise communicate, indicate, or make an
350    offer of coverage to an applicant or policyholder, or its agent,
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351    or otherwise accept coverage until the commercial lines
352    clearinghouse administrator has determined that a complete
353    submission has been made, affirmatively releases one or more
354    offers of coverage from approved surplus lines clearinghouse
355    insurers, or affirms that no clearinghouse insurer offer of
356    coverage has been made, and at least 5 business days have
357    elapsed from the date of such release, unless waived in writing.
358    Any change to the corporation's coverage terms and conditions,
359    deductible structures, or indicated total cost of insurance
360    coverage constitutes a new submission by the corporation under
361    this paragraph. The validation period described in this
362    paragraph applies regardless of any proposed effective date,
363    renewal date, or expiration date of the policy and may not be
364    shortened or bypassed based on timing considerations relating to
365    binding or renewal.
366(4)     The corporation may share risk exposure and policy
367    information with the commercial lines clearinghouse
368    administrator, and, through the commercial lines clearinghouse,
369    the commercial lines clearinghouse administrator may use such
370    information as necessary to operate and administer the
371    commercial lines clearinghouse and ensure the orderly, timely,
372    and transparent assessment of risks by insurers participating in
373    the commercial lines clearinghouse.
374(5)     Any authorized insurer may participate in the program;
375    however, participation is not mandatory for any insurer.
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376    Approved surplus lines clearinghouse insurers may participate in
377    the commercial lines clearinghouse but may not participate in
378    the personal lines clearinghouse; however, participation in the
379    program is not mandatory for any surplus lines insurer. Insurers
380    making offers of coverage to new applicants or renewal
381    policyholders through the program:
382(a)     May not be required to individually appoint any agent
383    whose customer is underwritten and bound through the program.
384    Notwithstanding s. 626.112, insurers are not required to appoint
385    any agent on a policy underwritten through the program for as
386    long as that policy remains with the insurer. Insurers may, at
387    their election, appoint any agent or surplus lines agent whose
388    direct or indirect customer is initially underwritten and bound
389    through the program. In the event an insurer accepts a policy
390    from an agent who is not appointed pursuant to this paragraph,
391    and thereafter elects to accept a policy from such agent, the
392    provisions of s. 626.112 requiring appointment apply to the
393    agent.
394(b)     Must enter into a limited agency agreement with each
395    agent or surplus lines agent that is not appointed in accordance
396    with paragraph (a) and whose direct or indirect customer is
397    underwritten and bound through the program. In addition, a
398    surplus lines agent that enters into a limited agency or broker
399    agreement with an approved surplus lines clearinghouse insurer
400    making an offer of coverage through the program must also enter
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401    into a limited agency or broker agreement with each producing
402    agent whose customer is underwritten and bound through the
403    program.
404(c)     Must enter into its standard agency agreement with
405    each agent or surplus lines agent whose direct or indirect
406    customer is underwritten and bound through the program when that
407    agent or surplus lines agent has been appointed by the insurer
408    pursuant to s. 626.112. In addition, a surplus lines agent that
409    enters into a standard agency or broker agreement with an
410    approved surplus lines clearinghouse insurer making an offer of
411    coverage through the program must also enter into a limited
412    agency or broker agreement with each producing agent whose
413    customer is underwritten and bound through the program.
414(d)     Must comply with s. 627.4133(2) or, if the insurer is
415    an approved surplus lines clearinghouse insurer, s. 626.9201.
416(e)     May participate through their designated single-
417    designated managing general agent, managing general underwriter,
418    or broker, or surplus lines agent; however, the provisions of
419    paragraph (7)(a) (6)(a) regarding ownership, control, and use of
420    the expirations continue to apply.
421(f)     For authorized insurers, must pay to the producing
422    agent a commission equal to that paid by the corporation or the
423    usual and customary commission paid by the insurer for that line
424    of business, whichever is greater.
425(g)     For approved surplus lines clearinghouse insurers,
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426    when coverage is placed through the clearinghouse with an
427    approved surplus lines clearinghouse insurer, must pay a total
428    commission or equivalent compensation on gross written premium,
429    exclusive of fees, surcharges, and taxes, to the surplus lines
430    agent, managing general agent, or managing general underwriter
431    placing the risk. The surplus lines agent, managing general
432    agent, or managing general underwriter must pay the producing
433    agent a commission that results in an effective commission
434    percentage at least equal to the commission percentage published
435    by the corporation and in effect on January 1, 2026, calculated
436    in the same manner and on the same basis used by the
437    corporation, and shall retain the remainder of the total
438    commission or equivalent compensation. This paragraph does not
439    prohibit an agent from voluntarily accepting a lower commission
440    at the agent's sole discretion. As used in this paragraph, the
441    term "effective commission percentage" means the commission
442    expressed as a percentage of premium, exclusive of all fees,
443    assessments, surcharges, and taxes.
444(6)(a)(5)  Notwithstanding s. 627.3517, any applicant for
445    new personal lines coverage from the corporation is not eligible
446    for coverage from the corporation if provided an offer of
447    comparable coverage from an authorized insurer through the
448    program at a premium that is at or below the eligibility
449    threshold for applicants for new coverage of a primary residence
450    established in s. 627.351(6)(c)5.a., or for applicants for new
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451    coverage of a risk that is not a primary residence established
452    in s. 627.351(6)(c)5.b. Whenever an offer of comparable coverage
453    for a personal lines risk is received for a policyholder of the
454    corporation at renewal from an authorized insurer through the
455    program which is at or below the eligibility threshold for
456    primary residences of policyholders of the corporation
457    established in s. 627.351(6)(c)5.a., or the eligibility
458    threshold for risks that are not primary residences of
459    policyholders of the corporation established in s.
460    627.351(6)(c)5.b., the risk is not eligible for coverage with
461    the corporation. In the event an offer of coverage for a new
462    applicant is received from an authorized insurer through the
463    program, and the premium offered exceeds the eligibility
464    threshold for applicants for new coverage of a primary residence
465    established in s. 627.351(6)(c)5.a., or the eligibility
466    threshold for applicants for new coverage on a risk that is not
467    a primary residence established in s. 627.351(6)(c)5.b., the
468    applicant or insured may elect to accept such coverage, or may
469    elect to accept or continue coverage with the corporation. In
470    the event an offer of coverage for a personal lines risk is
471    received from an authorized insurer at renewal through the
472    program, and the premium offered exceeds the eligibility
473    threshold for primary residences of policyholders of the
474    corporation established in s. 627.351(6)(c)5.a., or exceeds the
475    eligibility threshold for risks that are not primary residences
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476    of policyholders of the corporation established in s.
477    627.351(6)(c)5.b., the insured may elect to accept such
478    coverage, or may elect to accept or continue coverage with the
479    corporation. Section 627.351(6)(c)5.a.(I) and b.(I) does not
480    apply to an offer of coverage from an authorized insurer
481    obtained through the program. As used in this subsection, the
482    term "primary residence" has the same meaning as in s.
483    627.351(6)(c)2.a.
484(b)     Any applicant for new commercial lines residential
485    coverage from the corporation is not eligible for coverage from
486    the corporation if provided an offer of comparable coverage from
487    the corporation as to all aspects of such coverage from an
488    authorized insurer through the program at a premium that is at
489    or below the eligibility threshold for applicants for new
490    coverage established in s. 627.351(6)(c)5.c. The determination
491    of whether an offer of comparable coverage from an authorized
492    insurer through the program is at or below the eligibility
493    threshold must be made before the submission of the
494    corporation's coverage terms and conditions, deductible
495    structures, and unalterable indicated total cost of insurance is
496    provided to the commercial lines clearinghouse administrator.
497    Whenever an offer of comparable coverage from the corporation as
498    to all aspects of such coverage for a commercial lines
499    residential risk is received for a policyholder of the
500    corporation at renewal from an authorized insurer through the
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501    program which is at or below the eligibility threshold in s.
502    627.351(6)(c)5.c., the risk is not eligible for coverage from
503    the corporation. In the event that an offer of coverage for a
504    new applicant is received from an authorized insurer through the
505    program, and the premium offered exceeds the eligibility
506    threshold established in s. 627.351(6)(c)5.c., the applicant or
507    insured may elect to accept such coverage or may elect to accept
508    or continue coverage with the corporation. In the event that an
509    offer of coverage for a commercial lines residential risk is
510    received from an authorized insurer at renewal through the
511    program, and the premium offered exceeds the eligibility
512    threshold for policyholders of the corporation established in s.
513    627.351(6)(c)5.c., the insured may elect to accept such coverage
514    or may elect to accept or continue coverage with the
515    corporation. Section 627.351(6)(c)5.c.(I) does not apply to an
516    offer of coverage from an authorized insurer obtained through
517    the program.
518(c)1.       Except as provided in subparagraph 2., any applicant
519    for new commercial lines residential coverage or commercial
520    lines nonresidential coverage from the corporation and any
521    policyholder of the corporation, when such applicant or
522    corporation policyholder is offered commercial lines residential
523    or commercial lines nonresidential coverage pursuant to the
524    program by an approved surplus lines clearinghouse insurer,
525    remains eligible for coverage from the corporation. The
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526    applicant or policyholder receiving an offer from an approved
527    surplus lines clearinghouse insurer may elect to accept such
528    coverage or may elect to accept or continue coverage with the
529    corporation.
5302.      Any applicant for new commercial lines residential
531    coverage or commercial lines nonresidential coverage from the
532    corporation and any policyholder of the corporation, when such
533    applicant or corporation policyholder is offered commercial
534    lines residential or commercial lines nonresidential coverage by
535    an approved surplus lines insurer pursuant to the program and
536    such offered coverage is comparable coverage, and the total cost
537    of such insurance coverage is not more than 20 percent greater
538    than the total cost of insurance coverage from the corporation,
539    may elect to accept such coverage from the approved surplus
540    lines clearinghouse insurer or may elect to accept or continue
541    coverage with the corporation, but, if electing corporation
542    coverage, such applicant or policyholder must pay the total cost
543    of insurance for corporation coverage that is subject to s.
544    627.351(6)(oo).
5453.      Section 627.351(6)(c)5.c.(I) does not apply to an offer
546    of coverage from an approved surplus lines clearinghouse insurer
547    obtained through the program.
548(7)(6)       Independent insurance agents submitting new
549    applications for coverage or that are the agent of record on a
550    renewal policy submitted to the program:
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551(a)     Are granted and must maintain ownership and the
552    exclusive use of expirations, records, or other written or
553    electronic information directly related to such applications or
554    renewals written through the corporation or through an insurer
555    participating in the program, notwithstanding s. 627.351(5)(a),
556    s. 627.351(6)(c)5.a.(I)(B) and (II)(B), or s.
557    627.351(6)(c)5.b.(I)(B) and (II)(B). Such ownership is granted
558    for as long as the insured remains with the agency or until sold
559    or surrendered in writing by the agent. Contracts with the
560    corporation or required by the corporation or with any insurer
561    or surplus lines agent may must not amend, modify, interfere
562    with, or limit such rights of ownership. Such expirations,
563    records, or other written or electronic information may be used
564    to review an application, issue a policy, or for any other
565    purpose necessary for placing such business through the program.
566(b)     May not be required to be appointed by any insurer
567    participating in the program for policies written solely through
568    the program, notwithstanding the provisions of s. 626.112.
569(c)     May accept an appointment from any insurer
570    participating in the program.
571(d)     May enter into either a standard or limited agency
572    agreement with the insurer, at the insurer's option, and may
573    enter into agreements with a surplus lines agent.
574
575    Applicants ineligible for coverage in accordance with subsection
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576    (6) (5) remain ineligible if their independent agent is
577    unwilling or unable to enter into a standard or limited agency
578    agreement with an insurer participating in the program.
579(8)(7)       Exclusive agents submitting new applications for
580    coverage or that are the agent of record on a renewal policy
581    submitted to the program:
582(a)     Must maintain ownership and the exclusive use of
583    expirations, records, or other written or electronic information
584    directly related to such applications or renewals written
585    through the corporation or through an insurer participating in
586    the program, notwithstanding s. 627.351(6)(c)5.a.(I)(B) and
587    (II)(B) or s. 627.351(6)(c)5.b.(I)(B) and (II)(B). Contracts
588    with the corporation or required by the corporation must not
589    amend, modify, interfere with, or limit such rights of
590    ownership. Such expirations, records, or other written or
591    electronic information may be used to review an application,
592    issue a policy, or for any other purpose necessary for placing
593    such business through the program.
594(b)     May not be required to be appointed by any insurer
595    participating in the program for policies written solely through
596    the program, notwithstanding the provisions of s. 626.112.
597(c)     Must only facilitate the placement of an offer of
598    coverage from an insurer whose limited servicing agreement is
599    approved by that exclusive agent's exclusive insurer.
600(d)     May enter into a limited servicing agreement with the
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601    insurer making an offer of coverage, and only after the
602    exclusive agent's insurer has approved the limited servicing
603    agreement terms. The exclusive agent's insurer must approve a
604    limited service agreement for the program for any insurer for
605    which it has approved a service agreement for other purposes.
606
607    Applicants ineligible for coverage in accordance with subsection
608    (6) (5) remain ineligible if their exclusive agent is unwilling
609    or unable to enter into a standard or limited agency agreement
610    with an insurer making an offer of coverage to that applicant.
611(9)(8)       Submission of an application for coverage by the
612    corporation to the program does not constitute the binding of
613    coverage by the corporation, and failure of the program to
614    obtain an offer of coverage by an insurer may not be considered
615    acceptance of coverage of the risk by the corporation.
616(10)(9)       The 45-day notice of nonrenewal requirement set
617    forth in s. 627.4133(2)(b)5. applies when a policy is nonrenewed
618    by the corporation because the risk has received an offer of
619    coverage pursuant to this section which renders the risk
620    ineligible for coverage by the corporation.
621(10)        The program may not include commercial nonresidential
622    policies.
623(11)        Proprietary business information provided to the
624    corporation's clearinghouse by insurers with respect to
625    identifying and selecting risks for an offer of coverage is
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626    confidential and exempt from s. 119.07(1) and s. 24(a), Art. I
627    of the State Constitution.
628(a)      As used in this subsection, the term "proprietary
629    business information" means information, regardless of form or
630    characteristics, which is owned or controlled by an insurer and:
6311.      Is identified by the insurer as proprietary business
632    information and is intended to be and is treated by the insurer
633    as private in that the disclosure of the information would cause
634    harm to the insurer, an individual, or the company's business
635    operations and has not been disclosed unless disclosed pursuant
636    to a statutory requirement, an order of a court or
637    administrative body, or a private agreement that provides that
638    the information will not be released to the public;
6392.      Is not otherwise readily ascertainable or publicly
640    available by proper means by other persons from another source
641    in the same configuration as provided to the clearinghouse; and
6423.      Includes:
643a.      Trade secrets, as defined in s. 688.002.
644b.      Information relating to competitive interests, the
645    disclosure of which would impair the competitive business of the
646    provider of the information.
647
648    Proprietary business information may be found in underwriting
649    criteria or instructions which are used to identify and select
650    risks through the program for an offer of coverage and are
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651    shared with the clearinghouse to facilitate the shopping of
652    risks with the insurer.
653(b)      The clearinghouse may disclose confidential and exempt
654    proprietary business information:
6551.      If the insurer to which it pertains gives prior written
656    consent;
6572.      Pursuant to a court order; or
6583.      To another state agency in this or another state or to
659    a federal agency if the recipient agrees in writing to maintain
660    the confidential and exempt status of the document, material, or
661    other information and has verified in writing its legal
662    authority to maintain such confidentiality.
663(12)        To promote actuarial soundness, program integrity,
664    and mitigation of solvency or assessment risk to the
665    corporation, the office may review operational processes related
666    to the program. Such review may include, but is not limited to,
667    all of the following:
668(a)      Comparable coverage determinations upon complaint to
669    the office by or on behalf of a policy applicant.
670(b)      Verification of the financial strength of approved
671    surplus lines clearinghouse insurers participating in the
672    program.
673(c)      The reasonableness of fees charged by the commercial
674    lines clearinghouse administrator.
675(d)      The operational processes used by the commercial lines
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676    clearinghouse administrator to determine whether an offer of
677    coverage from an insurer participating in the program precludes
678    coverage from the corporation or requires an equalization
679    adjustment by the corporation.
680(e)      The potential for material adverse impact to the
681    corporation's surplus, solvency, or assessment exposure.
682(13)(a)       If, after a review under subsection (12), the
683    office determines that program processes are creating a material
684    risk to the solvency of the corporation, the office shall notify
685    the corporation and submit written recommendations to the
686    commission.
687(b)      Upon approval by the commission, the corporation may
688    temporarily implement recommendations made by the office to
689    address the solvency risk. Such recommendations may include, but
690    are not limited to, all of the following:
6911.      Temporary suspension of the equalization adjustment
692    authorized under s. 627.351(6)(oo).
6932.      Temporary exclusion of one or more participating
694    insurers from the program.
6953.      Temporary modification of program procedural timelines.
6964.      If exigent circumstances exist, temporary suspension of
697    the requirement that any applicant for new commercial
698    residential coverage or commercial nonresidential coverage from
699    the corporation and any policyholder of the corporation submit
700    applications for coverage through the commercial lines
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701    clearinghouse.
702(14)        This section does not authorize rebates or any
703    activity that would violate part IX of chapter 626. The
704    corporation and the commercial lines clearinghouse administrator
705    shall implement procedures to ensure that participating agents
706    and insurers are not induced to violate part IX of chapter 626.
707    The office may review such compliance procedures solely for the
708    purpose of submitting recommendations to the commission under
709    subsection (13).
710Section 3.  This act shall take effect upon becoming a law.
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