Bill > S0724

This bill modifies provisions related to the Citizens Property Insurance Corporation, a state-backed insurer of last resort, by allowing it to engage in more flexible business exchanges with other authorized insurers, specifically permitting Citizens to act as an agent to place new and renewal business with private insurers to reduce its size. It also revises requirements for reinsurance agreements, which are contracts where one insurer transfers risk to another, by mandating that Citizens and authorized insurers enter into excess of loss reinsurance agreements (where a reinsurer pays losses above a certain threshold) and quota share reinsurance agreements (where the reinsurer takes a percentage of the risk) under certain circumstances. The bill clarifies that if Citizens acts as the reinsurer, all policy forms and endorsements must be approved by the Office of Insurance Regulation, and it prohibits Citizens from sharing risk for certain damages, such as extra-contractual damages.