CS/CS/HB 1243 Summary

• Establishes Citizens Property Insurance Corporation as a residual market mechanism operating only when insurance cannot be obtained in the voluntary market, with actuarially sound rates that are not competitive with private insurers

• Implements phased eligibility restrictions for personal lines residential structures beginning January 1, 2009 ($2 million threshold), declining to $500,000 by January 1, 2016

• Authorizes Citizens policyholder surcharges up to 15 percent of premium to offset deficits, which must be levied before regular assessments are imposed on insurers; requires applicants to sign acknowledgment of potential surcharge and assessment liability

• Permits surplus lines insurers meeting specific financial requirements ($50 million surplus, A minus A.M. Best rating, sufficient reinsurance) to participate in depopulation and take-out programs on equal terms with authorized insurers

• Requires flood insurance for properties in Special Flood Hazard Areas as condition of Citizens coverage (effective 2012-2013); limits sinkhole coverage for attached structures and excludes screen enclosure coverage from new and renewed policies (effective January 1, 2012)