No. CS/CS/SB 1028
Filed under Insurance.
Citizens Property Insurance Corporation; Prohibiting the corporation from issuing new coverage for commercial residential and commercial nonresidential risks under certain circumstances; requiring the corporation to establish a personal lines clearinghouse for specified purposes; revising the rights and responsibilities the corporation has in establishing the program; requiring that certain risk information be aggregated and deidentified; 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, etc.
Plain English Summary
AI-GENERATEDCitizens Property Insurance can no longer issue new commercial residential or nonresidential policies if a private insurer offers comparable coverage at a similar price. This shifts commercial risk away from the state-backed insurer and toward the private market.
The law requires Citizens to build a separate commercial clearinghouse by January 2027. All new commercial applications and renewals must go through this system before Citizens can quote or bind coverage, ensuring private insurers get first access to these risks.
Commercial applicants are legally ineligible for Citizens coverage if an authorized insurer offers comparable terms. This creates a hard barrier preventing the state insurer from absorbing commercial risks that the private market is willing to underwrite.
Citizens must share aggregated, deidentified risk data with the surplus lines clearinghouse. This transparency helps private insurers price commercial policies accurately, supporting the bill's goal of moving commercial business out of the state portfolio.
AIProhibits Citizens from issuing new commercial residential or nonresidential coverage if a surplus lines insurer offers comparable coverage at a cost no more than 15% higher than Citizens' cost.
AIRequires Citizens to implement separate commercial lines clearinghouses for surplus lines and authorized insurers by January 1, 2027, to divert commercial risks to the private market.
AIRequires all new commercial applications and renewals to be submitted to the commercial lines clearinghouse before Citizens may quote, bind, or offer coverage.
AIProhibits the corporation from insuring new or renewal commercial nonresidential risks if an authorized insurer offers comparable coverage through the program.
AIProhibits the corporation from insuring new or renewal commercial residential risks if an authorized insurer offers comparable coverage at or below the statutory eligibility threshold.
AIProhibits the corporation from insuring commercial risks if an approved surplus lines clearinghouse insurer offers comparable coverage with a total cost not more than 15 percent greater than the corporation's cost.
AIRequires a 5-business-day period where authorized insurers may select commercial applications before Citizens can approve them, extending the existing 2-day rule for personal lines.
AIRequires Citizens to share risk exposure and policy information with the surplus lines clearinghouse administrator, mandating that shared data be aggregated and deidentified.