summary
Introduced
12/30/2025
12/30/2025
In Committee
01/07/2026
01/07/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Session
Bill Summary
An act relating to the Citizens Property Insurance Corporation; amending s. 627.351, F.S.; prohibiting the corporation from issuing or renewing coverage for commercial residential and commercial nonresidential risks under certain circumstances; prohibiting the corporation from imposing an equalization adjustment under certain circumstances; providing applicability; specifying the components of the total cost of insurance coverage; specifying that the corporation is not relieved from an obligation to impose an equalization adjustment under certain circumstances; specifying that certain adjustments expire at a specified time; defining the term “equalization adjustment”; amending s. 627.3518, F.S.; deleting an obsolete provision; defining terms; revising the definition of the term “program”; requiring the corporation to establish a personal lines clearinghouse for specified purposes; requiring, on or before a specified date, the corporation to amend its plan of operation and implement a commercial lines clearinghouse for a specified purpose; requiring, on or before a specified date, the corporation to implement a separate commercial lines clearinghouse for specified purposes; deleting obsolete provisions; revising the program’s rights and responsibilities; revising the rights and responsibilities the corporation has in establishing the program; authorizing the corporation to share risk exposure and policy information with the commercial lines clearinghouse administrator; authorizing such administrator to use such information for a specified purpose; authorizing approved surplus lines clearinghouse insurers to participate in the commercial lines clearinghouse; prohibiting such insurers from participating in the personal lines clearinghouse; specifying that participation in the program is not mandatory for such insurers; revising prohibitions and requirements for insurers making offers of coverage to new applicants or renewal policyholders through the program; providing construction; defining the term “effective commission percentage”; specifying that applicants for new commercial lines residential coverage are not eligible for coverage from the corporation under certain circumstances; specifying the circumstances under which policyholders of the corporation are not eligible for new commercial lines residential coverage from the corporation; requiring that the determination of whether an offer of comparable coverage from an authorized insurer is at or below the eligibility threshold be made at a specified time; authorizing applicants or insureds to elect to accept coverage with authorized insurers or elect to accept or continue coverage with the corporation under certain circumstances; authorizing insureds to elect to accept coverage with specified insurers or elect to accept or continue coverage with the corporation under certain circumstances; providing applicability; specifying that certain applicants and policyholders remain eligible for coverage from the corporation; authorizing such applicants and policyholders to elect to accept coverage from clearinghouse insurers or elect to accept or continue coverage with the corporation; authorizing certain applicants and policyholders of the corporation to elect to accept coverage from clearinghouse insurers or elect to accept or continue coverage with the corporation; requiring such applicants or policyholders to pay a specified total cost of insurance for corporation coverage; providing applicability; revising the rights and authorizations for certain independent insurance agents; deleting a prohibition relating to commercial nonresidential policies; authorizing the Office of Insurance Regulation to review certain operational processes related to the program; specifying the contents of such review; requiring the office to notify the corporation and submit written recommendations to the Financial Services Commission under certain circumstances; authorizing the corporation to temporarily implement certain recommendations; providing construction; requiring the corporation and the commercial lines clearinghouse administrator to implement specified procedures; authorizing the office to review such procedures; providing an effective date.
AI Summary
This bill modifies the operations of the Citizens Property Insurance Corporation, primarily by establishing and expanding clearinghouse programs for both personal and commercial insurance lines. For commercial residential and nonresidential risks, the corporation may not issue or renew coverage if a surplus lines insurer (an insurer not licensed in Florida but authorized to provide coverage under specific circumstances) offers comparable coverage that is no more than 20% more expensive than Citizens' coverage; if the offer is more expensive, Citizens can impose an "equalization adjustment" (a temporary, policy-term-only adjustment to compare offers fairly) to match the difference, but this adjustment expires at the end of the policy term. The bill also mandates the creation of a personal lines clearinghouse and a commercial lines clearinghouse by specific dates, with the commercial lines clearinghouse designed to facilitate offers from approved surplus lines clearinghouse insurers and authorized insurers. It outlines new responsibilities for the corporation in managing these clearinghouses, including sharing risk information and establishing criteria for clearinghouse administrators. The bill clarifies eligibility for coverage, stating that applicants for commercial residential coverage are generally ineligible if offered comparable coverage from an authorized insurer below a certain price threshold, and it also details how policyholders of the corporation can elect to accept coverage from clearinghouse insurers or continue with Citizens. Furthermore, the bill authorizes the Office of Insurance Regulation to review the clearinghouse's operational processes to ensure actuarial soundness and mitigate risks to Citizens' solvency, with the power to recommend temporary measures if solvency is threatened.
Committee Categories
Budget and Finance
Sponsors (1)
Other Sponsors (2)
Banking and Insurance (Senate), Fiscal Policy (Senate)
Last Action
CS/CS by Fiscal Policy read 1st time (on 02/18/2026)
Official Document
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
Loading...