F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 13 2025
1 A bill to be entitled
2 An act relating to windstorm coverage by Citizens
3 Property Insurance Corporation; amending s. 627.351,
4 F.S.; removing provisions relating to windstorm risk
5 apportionment plan agreements among property insurers;
6 revising legislative findings; revising the purpose of
7 the Citizens Property Insurance Corporation; requiring
8 the corporation to make windstorm coverage available
9 to homeowners for any residential structures;
10 providing requirements for the windstorm coverage;
11 providing construction; removing obsolete language;
12 authorizing homeowners to obtain windstorm coverage
13 from certain insurance agents; providing underwriting
14 and administering requirements for the windstorm
15 coverage portion of insurance; providing
16 administrative fees; providing requirements for claims
17 settlement payments; removing obsolete dates;
18 requiring the corporation to make windstorm coverage
19 available for commercial lines residential structures;
20 providing requirements for the windstorm coverage;
21 providing construction; revising requirements for the
22 corporation's plan of operation; removing certain
23 definitions; revising certain statements obtained by
24 agents from applicants for coverage from the
25 corporation; providing definitions; amending s.
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26 215.555, F.S.; removing obsolete language; conforming
27 a cross-reference; conforming a provision to changes
28 made by the act; amending ss. 215.5595, 624.805,
29 627.062, 627.0628, 627.06281, 627.0629, 627.4025,
30 627.701, 627.7018, 627.711, 627.712, 627.713, 631.54,
31 718.111, 719.104, and 720.303, F.S.; conforming
32 provisions to changes made by the act; amending ss.
33 395.1061, 458.320, 459.0085, 464.0123, 624.424,
34 624.462, 625.317, and 627.0655, F.S.; conforming
35 cross-references; amending s. 627.3511, F.S.;
36 conforming cross-references; conforming provisions to
37 changes made by the act; amending ss. 627.3512,
38 627.3513, 627.3515, 627.3517, and 627.3518, F.S.;
39 conforming cross-references; amending s. 627.4133,
40 F.S.; conforming a cross-reference; conforming a
41 provision to changes made by the act; amending ss.
42 627.945 and 628.6017, F.S.; conforming cross-
43 references; providing an effective date.
44
45 Be It Enacted by the Legislature of the State of Florida:
46
47 Section 1. Subsections (3) through (8) of section 627.351,
48 Florida Statutes, are renumbered as subsections (2) through (7),
49 respectively, paragraphs (w), (x), (y), and (aa) through (nn) of
50 present subsection (6) are redesignated as paragraphs (v), (w),
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51 (x), and (y) through (ll) of new subsection (5), respectively,
52 present subsections (2) and (5) and paragraphs (a), (b), (c),
53 and (o) and present paragraphs (v), (z), and (nn) of present
54 subsection (6) are amended, and a new paragraph (mm) is added to
55 present subsection (6) of that section, to read:
56 627.351 Insurance risk apportionment plans.—
57 (2) WINDSTORM INSURANCE RISK APPORTIONMENT.—
58 (a) Agreements may be made among property insurers with
59 respect to the equitable apportionment among them of insurance
60 which may be afforded applicants who are in good faith entitled
61 to, but are unable to procure, such insurance through ordinary
62 methods; and such insurers may agree among themselves on the use
63 of reasonable rate modifications for such insurance. Such
64 agreements and rate modifications shall be subject to the
65 applicable provisions of this chapter.
66 (b) The department shall require all insurers holding a
67 certificate of authority to transact property insurance on a
68 direct basis in this state, other than joint underwriting
69 associations and other entities formed pursuant to this section,
70 to provide windstorm coverage to applicants from areas
71 determined to be eligible pursuant to paragraph (c) who in good
72 faith are entitled to, but are unable to procure, such coverage
73 through ordinary means; or it shall adopt a reasonable plan or
74 plans for the equitable apportionment or sharing among such
75 insurers of windstorm coverage, which may include formation of
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76 an association for this purpose. As used in this subsection, the
77 term "property insurance" means insurance on real or personal
78 property, as defined in s. 624.604, including insurance for
79 fire, industrial fire, allied lines, farmowners multiperil,
80 homeowners multiperil, commercial multiperil, and mobile homes,
81 and including liability coverages on all such insurance, but
82 excluding inland marine as defined in s. 624.607(3) and
83 excluding vehicle insurance as defined in s. 624.605(1)(a) other
84 than insurance on mobile homes used as permanent dwellings. The
85 department shall adopt rules that provide a formula for the
86 recovery and repayment of any deferred assessments.
87 1. For the purpose of this section, properties eligible
88 for such windstorm coverage are defined as dwellings, buildings,
89 and other structures, including mobile homes which are used as
90 dwellings and which are tied down in compliance with mobile home
91 tie-down requirements prescribed by the Department of Highway
92 Safety and Motor Vehicles pursuant to s. 320.8325, and the
93 contents of all such properties. An applicant or policyholder is
94 eligible for coverage only if an offer of coverage cannot be
95 obtained by or for the applicant or policyholder from an
96 admitted insurer at approved rates.
97 2.a.(I) All insurers required to be members of such
98 association shall participate in its writings, expenses, and
99 losses. Surplus of the association shall be retained for the
100 payment of claims and shall not be distributed to the member
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101 insurers. Such participation by member insurers shall be in the
102 proportion that the net direct premiums of each member insurer
103 written for property insurance in this state during the
104 preceding calendar year bear to the aggregate net direct
105 premiums for property insurance of all member insurers, as
106 reduced by any credits for voluntary writings, in this state
107 during the preceding calendar year. For the purposes of this
108 subsection, the term "net direct premiums" means direct written
109 premiums for property insurance, reduced by premium for
110 liability coverage and for the following if included in allied
111 lines: rain and hail on growing crops; livestock; association
112 direct premiums booked; National Flood Insurance Program direct
113 premiums; and similar deductions specifically authorized by the
114 plan of operation and approved by the department. A member's
115 participation shall begin on the first day of the calendar year
116 following the year in which it is issued a certificate of
117 authority to transact property insurance in the state and shall
118 terminate 1 year after the end of the calendar year during which
119 it no longer holds a certificate of authority to transact
120 property insurance in the state. The commissioner, after review
121 of annual statements, other reports, and any other statistics
122 that the commissioner deems necessary, shall certify to the
123 association the aggregate direct premiums written for property
124 insurance in this state by all member insurers.
125 (II) Effective July 1, 2002, the association shall operate
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126 subject to the supervision and approval of a board of governors
127 who are the same individuals that have been appointed by the
128 Treasurer to serve on the board of governors of the Citizens
129 Property Insurance Corporation.
130 (III) The plan of operation shall provide a formula
131 whereby a company voluntarily providing windstorm coverage in
132 affected areas will be relieved wholly or partially from
133 apportionment of a regular assessment pursuant to sub-sub-
134 subparagraph d.(I) or sub-sub-subparagraph d.(II).
135 (IV) A company which is a member of a group of companies
136 under common management may elect to have its credits applied on
137 a group basis, and any company or group may elect to have its
138 credits applied to any other company or group.
139 (V) There shall be no credits or relief from apportionment
140 to a company for emergency assessments collected from its
141 policyholders under sub-sub-subparagraph d.(III).
142 (VI) The plan of operation may also provide for the award
143 of credits, for a period not to exceed 3 years, from a regular
144 assessment pursuant to sub-sub-subparagraph d.(I) or sub-sub-
145 subparagraph d.(II) as an incentive for taking policies out of
146 the Residential Property and Casualty Joint Underwriting
147 Association. In order to qualify for the exemption under this
148 sub-sub-subparagraph, the take-out plan must provide that at
149 least 40 percent of the policies removed from the Residential
150 Property and Casualty Joint Underwriting Association cover risks
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151 located in Miami-Dade, Broward, and Palm Beach Counties or at
152 least 30 percent of the policies so removed cover risks located
153 in Miami-Dade, Broward, and Palm Beach Counties and an
154 additional 50 percent of the policies so removed cover risks
155 located in other coastal counties, and must also provide that no
156 more than 15 percent of the policies so removed may exclude
157 windstorm coverage. With the approval of the department, the
158 association may waive these geographic criteria for a take-out
159 plan that removes at least the lesser of 100,000 Residential
160 Property and Casualty Joint Underwriting Association policies or
161 15 percent of the total number of Residential Property and
162 Casualty Joint Underwriting Association policies, provided the
163 governing board of the Residential Property and Casualty Joint
164 Underwriting Association certifies that the take-out plan will
165 materially reduce the Residential Property and Casualty Joint
166 Underwriting Association's 100-year probable maximum loss from
167 hurricanes. With the approval of the department, the board may
168 extend such credits for an additional year if the insurer
169 guarantees an additional year of renewability for all policies
170 removed from the Residential Property and Casualty Joint
171 Underwriting Association, or for 2 additional years if the
172 insurer guarantees 2 additional years of renewability for all
173 policies removed from the Residential Property and Casualty
174 Joint Underwriting Association.
175 b. Assessments to pay deficits in the association under
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176 this subparagraph shall be included as an appropriate factor in
177 the making of rates as provided in s. 627.3512.
178 c. The Legislature finds that the potential for unlimited
179 deficit assessments under this subparagraph may induce insurers
180 to attempt to reduce their writings in the voluntary market, and
181 that such actions would worsen the availability problems that
182 the association was created to remedy. It is the intent of the
183 Legislature that insurers remain fully responsible for paying
184 regular assessments and collecting emergency assessments for any
185 deficits of the association; however, it is also the intent of
186 the Legislature to provide a means by which assessment
187 liabilities may be amortized over a period of years.
188 d.(I) When the deficit incurred in a particular calendar
189 year is 10 percent or less of the aggregate statewide direct
190 written premium for property insurance for the prior calendar
191 year for all member insurers, the association shall levy an
192 assessment on member insurers in an amount equal to the deficit.
193 (II) When the deficit incurred in a particular calendar
194 year exceeds 10 percent of the aggregate statewide direct
195 written premium for property insurance for the prior calendar
196 year for all member insurers, the association shall levy an
197 assessment on member insurers in an amount equal to the greater
198 of 10 percent of the deficit or 10 percent of the aggregate
199 statewide direct written premium for property insurance for the
200 prior calendar year for member insurers. Any remaining deficit
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201 shall be recovered through emergency assessments under sub-sub-
202 subparagraph (III).
203 (III) Upon a determination by the board of directors that
204 a deficit exceeds the amount that will be recovered through
205 regular assessments on member insurers, pursuant to sub-sub-
206 subparagraph (I) or sub-sub-subparagraph (II), the board shall
207 levy, after verification