Bill > S1622

This bill establishes a clearinghouse diversion program within the Citizens Property Insurance Corporation, a state-run insurer of last resort, to help identify and move eligible policyholders into the private insurance market. The program, which must be operational by July 1, 2013, will require all new applications and renewals to be submitted to the clearinghouse first, giving private insurers a 48-hour window to offer coverage before the applicant is considered for Citizens. The clearinghouse will function like a licensed insurance agent but without needing its own license, and it can contract with private insurance companies to participate. The bill also outlines specific rules for how independent and exclusive agents (licensed agents who work for one company or group) must interact with the clearinghouse and participating insurers, including requirements for agency agreements and the handling of policyholder information. If a private insurer offers coverage at a rate comparable to or lower than Citizens' eligibility threshold, the applicant will not be eligible for Citizens' coverage. The program also allows for private entities to act as alternatives for obtaining coverage offers, but these entities must also ensure insurers participate in the main clearinghouse program.