SB 936 Summary

• Revises the definition of "covered policy" under the Florida Hurricane Catastrophe Fund to include wind-only policies removed from Citizens Property Insurance Corporation through assumption or reinsurance agreements approved by the Office of Insurance Regulation.

• Expands Citizens Property Insurance Corporation's exemption from surplus lines business restrictions to include activities related to reducing the corporation's size through risk-sharing agreements with authorized insurers.

• Replaces the quota share primary insurance program with a broader reinsurance program allowing Citizens to offer proportional or nonproportional reinsurance to insurers, with Citizens' participation capped at 80 percent of risk and participation declining over up to 5 years.

• Requires Citizens and participating insurers to report exposure data and liability percentages to the Florida Hurricane Catastrophe Fund, with the State Board of Administration adopting rules to administer reporting requirements.

• Modifies eligibility procedures for personal and commercial residential risks to reference "new or renewal" coverage and removes provisions allowing policyholders removed through assumption agreements to remain eligible for corporation coverage.

• Takes effect July 1, 2015.